Cubic 8-K 17 Aug 18 2017 FY Regulation FD Disclosure Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Sep. 30, 2017
Document and Entity Information
Entity Registrant Name	CUBIC CORP /DE/
Entity Central Index Key	26,076
Document Type	8-K
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Net sales:
Products	$ 681,559	$ 661,904	$ 607,226
Services	426,150	408,697	421,673
Total net sales	1,107,709	1,070,601	1,028,899
Costs and expenses:
Products	473,670	473,444	451,295
Services	305,653	293,033	277,884
Selling, general and administrative expenses	240,601	253,163	195,752
Research and development	52,652	31,976	17,992
Amortization of purchased intangibles	30,245	29,356	19,860
Restructuring costs	2,260	1,278	5,713
Total costs and expenses	1,105,081	1,082,250	968,496
Operating loss	2,628	(11,649)	60,403
Other income (expense):
Interest and dividend income	953	1,416	1,744
Interest expense	(15,027)	(11,199)	(4,400)
Pension settlement loss		(2,671)
Other income (expense), net	364	(2,334)	(951)
Income (Loss) from continuing operations before income taxes	(11,082)	(26,437)	56,796
Income tax provision (benefit)	14,658	(14,357)	46,626
Net income (loss) from continuing operations	(25,740)	(12,080)	10,170
Net income from discontinued operations	14,531	13,815	12,744
Net income (loss)	(11,209)	1,735	22,914
Less noncontrolling interest in income of VIE			29
Net income (loss) attributable to Cubic	$ (11,209)	$ 1,735	$ 22,885
Basic
Continuing operations (in dollars per share)	$ (0.95)	$ (0.45)	$ 0.38
Discontinued operations (in dollars per share)	0.54	0.51	0.47
Basic earnings per share (in dollars per share)	(0.41)	0.06	0.85
Diluted
Continuing operations (in dollars per share)	(0.95)	(0.45)	0.38
Discontinued operations (in dollars per share)	0.54	0.51	0.47
Diluted earnings per share (in dollars per share)	$ (0.41)	$ 0.06	$ 0.85
Weighted average shares used in per share calculations:
Basic (in shares)	27,106	26,976	26,872
Diluted (in shares)	27,106	26,976	26,938

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ (11,209)	$ 1,735	$ 22,914
Other comprehensive income (loss):
Adjustment to pension liability, net of tax	13,180	(19,584)	(15,791)
Foreign currency translation	1,440	(47,872)	(31,430)
Change in unrealized gains/losses from cash flow hedges:
Change in fair value of cash flow hedges, net of tax	(1,071)	464	1,574
Adjustment for net gains/losses realized and included in net income, net of tax	(358)	(989)	(817)
Total change in unrealized gains/losses realized from cash flow hedges, net of tax	(1,429)	(525)	757
Total other comprehensive income (loss)	13,191	(67,981)	(46,464)
Total comprehensive income (loss)	$ 1,982	$ (66,246)	$ (23,550)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 60,143	$ 197,127
Restricted cash	8,434	75,648
Marketable securities		12,996
Accounts receivable:
Long-term contracts	354,476	302,769
Allowance for doubtful accounts	(436)	(326)
Accounts receivable, net	354,040	302,443
Recoverable income taxes	5,360	9,706
Inventories	87,715	66,362
Other current assets	29,951	36,564
Current assets of discontinued operations	75,900	81,805
Total current assets	621,543	782,651
Long-term contract receivables	17,457	20,926
Long-term capitalized contract costs	56,471	65,382
Property, plant and equipment, net	113,220	93,925
Deferred income taxes	7,385	6,650
Goodwill	321,562	312,596
Purchased intangibles, net	89,858	112,014
Other assets	10,515	6,559
Noncurrent assets of discontinued operations	98,274	103,705
Total assets	1,336,285	1,504,408
Current liabilities:
Short-term borrowings	55,000	240,000
Trade accounts payable	88,521	77,486
Customer advances	56,132	48,117
Accrued compensation	79,577	73,619
Other current liabilities	50,549	46,350
Income taxes payable	9,838	1,450
Current maturities of long-term debt		450
Current liabilities of discontinued operations	36,862	32,771
Total current liabilities	376,479	520,243
Long-term debt	199,761	200,291
Accrued pension liability	25,375	46,865
Deferred compensation	11,435	10,643
Income taxes payable	7,465	11,855
Deferred income taxes	10,407	3,980
Other long-term liabilities	15,732	20,635
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value: Authorized--5,000 shares, Issued and outstanding--none
Common stock, no par value: Authorized--50,000 shares, 36,072 issued and 27,127 outstanding at September 30, 2017, 35,937 issued and 26,992 outstanding at September 30, 2016	37,850	32,756
Retained earnings	794,485	813,035
Accumulated other comprehensive loss	(106,626)	(119,817)
Treasury stock at cost - 8,945 shares	(36,078)	(36,078)
Total shareholders' equity	689,631	689,896
Total liabilities and shareholders' equity	$ 1,336,285	$ 1,504,408

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2017	Sep. 30, 2016
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value	$ 0	$ 0
Preferred stock, Authorized shares	5,000	5,000
Preferred stock, Issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$ 0	$ 0
Common stock, Authorized shares	50,000	50,000
Common stock, Issued shares	36,072	35,937
Common stock, outstanding shares	27,127	26,992
Treasury stock, shares	8,945	8,945

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Operating Activities:
Net income (loss)	$ (11,209)	$ 1,735	$ 22,914
Net income from discontinued operations	(14,531)	(13,815)	(12,744)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	48,045	40,323	29,185
Share-based compensation expense	5,012	7,748	7,407
Change in fair value of contingent consideration	(3,878)	1,274	3,607
Loss on disposal of assets	405
Deferred income taxes	(917)	(27,709)	27,485
Net pension cost (benefit)	(1,046)	1,102	(3,224)
Excess tax benefits from equity incentive plans	(35)	3	33
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(45,443)	(184)	9,961
Inventories	(18,867)	(62)	(21,669)
Prepaid expenses and other current assets	7,286	4,494	(14,942)
Long-term capitalized contract costs	8,911	7,635	3,192
Accounts payable and other current liabilities	13,389	25,613	33,338
Customer advances	7,383	(24,908)	(10,337)
Income taxes	8,240	(5,519)	8,847
Other items, net	(5,756)	6,294	(1,805)
NET CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES	(3,011)	24,024	81,248
NET CASH PROVIDED BY OPERATING ACTIVITIES FROM DISCONTINUED OPERATIONS	27,747	20,578	8,441
NET CASH PROVIDED BY OPERATING ACTIVITIES	24,736	44,602	89,689
Investing Activities:
Acquisition of businesses, net of cash acquired	(16,830)	(243,459)	(92,178)
Purchases of marketable securities	(19,121)	(28,470)	(58,855)
Proceeds from sales or maturities of marketable securities	31,868	43,456	51,173
Purchases of property, plant and equipment	(36,916)	(32,093)	(22,164)
Purchase of non-marketable debt and equity securities	(2,700)
Purchases of other assets			(2,993)
NET CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS	(43,699)	(260,566)	(125,017)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES FROM DISCONTINUED OPERATIONS	1,217		(38)
NET CASH USED IN INVESTING ACTIVITIES	(42,482)	(260,566)	(125,055)
Financing Activities:
Proceeds from short-term borrowings	130,780	288,900	111,300
Principal payments on short-term borrowings	(315,780)	(108,900)	(51,300)
Proceeds from long-term borrowings		75,000	25,000
Principal payments on long-term debt	(978)	(494)	(537)
Deferred financing fees		(3,647)
Stock issued under employee stock purchase plan	2,234
Purchase of common stock	(2,444)	(1,563)	(2,652)
Dividends paid	(7,341)	(7,285)	(7,256)
Excess tax benefits from equity incentive plans	35	(3)	(33)
Contingent consideration payments related to acquisitions of businesses	(2,625)	(2,479)
Purchase of noncontrolling interest			(1,029)
Net change in restricted cash	66,293	(6,403)	(189)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(129,826)	233,126	73,304
Effect of exchange rates on cash	10,588	(38,511)	(10,950)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(136,984)	(21,349)	26,988
Cash and cash equivalents at the beginning of the period	197,127	218,476	191,488
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	60,143	197,127	218,476
MotionDSP
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net	1,327
Vocality
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net	$ 271
GATR
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net		6,788
TeraLogics
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net		4,998
H4 Global
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net		$ 952
DTECH
Supplemental disclosure of non-cash investing and financing activities:
Liability incurred to acquire, net			$ 11,808

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Noncontrolling Interest in VIE	Total
Balance at Sep. 30, 2014	$ 20,669	$ 803,059	$ (5,372)	$ (36,078)	$ 223
Balance (in shares) at Sep. 30, 2014	26,789
Increase (Decrease) in Stockholders' Equity
Net income (loss)		22,885			29	$ 22,885
Other comprehensive income (loss), net of tax			(46,464)
Stock issued under equity incentive plans, value		(46)
Stock issued under equity incentive plans, shares	160
Purchase of common stock, value	$ (2,652)
Purchase of common stock, shares	(66)
Stock- based compensation	$ 8,325
Purchase of noncontrolling interest	(749)				$ (252)
Tax benefit (expense) from equity incentive plans	(33)
Cash dividends paid		(7,256)
Balance at Sep. 30, 2015	$ 25,560	818,642	(51,836)	(36,078)
Balance (in shares) at Sep. 30, 2015	26,883
Increase (Decrease) in Stockholders' Equity
Net income (loss)		1,735				1,735
Other comprehensive income (loss), net of tax			(67,981)
Stock issued under equity incentive plans, value		(57)
Stock issued under equity incentive plans, shares	152
Purchase of common stock, value	$ (1,563)
Purchase of common stock, shares	(43)
Stock- based compensation	$ 8,762
Tax benefit (expense) from equity incentive plans	(3)
Cash dividends paid		(7,285)
Balance at Sep. 30, 2016	$ 32,756	813,035	(119,817)	(36,078)
Balance (in shares) at Sep. 30, 2016	26,992
Increase (Decrease) in Stockholders' Equity
Net income (loss)		(11,209)				$ (11,209)
Other comprehensive income (loss), net of tax			13,191
Stock issued under equity incentive plans, shares	158
Stock issued under employee stock purchase plans, value	$ 2,234
Stock issued under employee stock purchase plans, shares	32
Purchase of common stock, value	$ (2,444)
Purchase of common stock, shares	(55)
Stock- based compensation	$ 5,269
Tax benefit (expense) from equity incentive plans	35
Cash dividends paid		(7,341)
Balance at Sep. 30, 2017	$ 37,850	$ 794,485	$ (106,626)	$ (36,078)
Balance (in shares) at Sep. 30, 2017	27,127

CONSOLIDATED STATEMENTS OF CHA8

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Cash dividends paid, per share of common stock	$ 0.27	$ 0.27	$ 0.24

Summary of Significant Accounti

Summary of Significant Accounting Polices	12 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Polices
Summary of Significant Accounting Polices	NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of the Business: We design, develop and manufacture products which are mainly electronic in nature such as mass transit fare collection systems, air and ground combat training systems, and networked Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) products and systems. We provide services such as the operation and maintenance of fare systems for mass transit customers. Through September 30, 2017 our principal lines of business were transportation fare collection systems and services, defense systems, and defense services. On April 18, 2018, we entered into a stock purchase agreement with Nova Global Supply & Services, LLC (Purchaser), an entity affiliated with GC Valiant, LP, under which we agreed to sell our Cubic Global Defense Services (CGD Services) business to Purchaser. The sale closed on May 31, 2018. As a result of the sale, the operating results and cash flows of CGD Services have been classified as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented and the assets and liabilities of CGD Services have been classified as assets and liabilities of discontinued operations in the Consolidated Balance Sheets for all periods presented. In addition, we concluded that CMS became a separate operating segment and reportable segment beginning on October 1, 2017. Applicable prior period amounts have been adjusted retrospectively to reflect the reportable segment change for all periods presented. Refer to “Note 2 – Acquisitions and Divestitures” for additional information about the sale of CGD Services and the related discontinued operation classification and “Note 16 – Business Segment Information” for additional information on the separate disclosure of operating and reportable segment information for CMS. Our transportation fare collection systems and services are sold primarily to large local government agencies worldwide. Our principal customers for defense products and services are the U.S. and foreign governments. Principles of Consolidation: The consolidated financial statements include the accounts of Cubic Corporation, subsidiaries we control, and variable interest entities (VIE’s) for which Cubic is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Foreign Currency Transactions and Translation : Our reporting currency is the U.S. dollar. Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and our Consolidated Statements of Operations are translated at the average exchange rates in effect during the applicable periods. The resulting unrealized cumulative translation adjustments are recorded as a component of other comprehensive income (loss) in our Consolidated Statements of Comprehensive Income (Loss). Cash flows from our operations in foreign countries are translated at the average rate for the applicable period. The effect of exchange rates on cash balances held in foreign currencies are separately reported in our Consolidated Statements of Cash Flows. Transactions denominated in currencies other than our own subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in our Consolidated Balance Sheets related to such transactions result in transaction gains and losses that are reflected in our Consolidated Statements of Operations as a component of other income (expense). Total transaction gains and losses, which are related primarily to advances to foreign subsidiaries and advances between foreign subsidiaries amounted to a gain of $0.7 million in 2017, and losses of $0.9 million and $3.2 million in 2016 and 2015, respectively. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include the estimated total costs at completion of our long-term contracts, estimated loss contingencies, estimated self-insurance liabilities, estimated discounted future cash flows of our reporting units used for goodwill impairment testing and estimated future cash flows for our long-lived asset impairment testing, estimated discounted cash flows used for valuation of intangible assets and contingent consideration in business combinations, and estimated rates of return and discount rates related to our defined benefit pension plans. Actual results could differ from our estimates. Cash Equivalents : We consider highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Restricted Cash: Restricted cash represents cash that is restricted as to usage for legal or contractual reasons. Restricted cash is classified either as current or non-current, depending upon the date of the lapse of the respective restriction. Concentration of Credit Risk: We have established guidelines pursuant to which our cash and cash equivalents are diversified among various money market instruments and investment funds. These guidelines emphasize the preservation of capital by requiring minimum credit ratings assigned by established credit organizations. We achieve diversification by specifying maximum investments in each instrument type and issuer. The majority of these investments are not on deposit in federally insured accounts. 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 Consolidated Balance Sheets and the change in fair value is recorded, net of taxes, as a component of other comprehensive income. 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 Consolidated Balance Sheets based upon the nature of the securities and availability for use in current operations. Accounts Receivable: Receivables consist primarily of amounts due from U.S. and foreign governments for defense products and services and local government agencies for transportation systems. Due to the nature of our customers, we generally do not require collateral. We have limited exposure to credit risk as we have historically collected substantially all of our receivables from government agencies. We generally require no allowance for doubtful accounts for these customers. Inventories: We state our inventories at the lower of cost or market. We determine cost using the first-in, first-out (FIFO) method, which approximates current replacement cost. We value our work in process at the actual production and engineering costs incurred to date, including applicable overhead. For contracts with the U.S. government our work in process also includes general and administrative costs. Any inventoried costs in excess of estimated realizable value are immediately charged to cost of sales. We include qualifying contract costs allocable to units-of-delivery contracts as inventory. We receive performance-based payments and progress payments associated with certain of these contracts based on the billing terms in the underlying contracts. 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 use the units-of-delivery method to recognize revenue. 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 a liability on the balance sheet. Long-term capitalized contract costs: Long-term capitalized contract costs include costs incurred on contracts to develop and manufacture transportation systems for customers for which revenue recognition does not begin until the customers begin operating the systems. Once operation of the systems commence, the capitalized costs are recognized in cost of sales based upon the ratio of revenue recorded during a period compared to the revenue expected to be recognized over the term of the contracts. Property, Plant and Equipment: We carry property, plant and equipment at cost. We provide depreciation in amounts sufficient to amortize the cost of the depreciable assets over their estimated useful lives. Generally, we use straight-line methods for depreciable real property over estimated useful lives or the term of the underlying lease, if shorter than the estimated useful lives, for leasehold improvements. We use accelerated methods (declining balance and sum-of-the-years-digits) for machinery and equipment over their estimated useful lives. Certain costs incurred in the development of internal-use software and software applications, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development, are capitalized as computer software costs. Costs incurred outside of the application development stage are expensed as incurred. The amounts capitalized are included in property, plant and equipment 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. Goodwill and Purchased Intangibles: We evaluate goodwill for potential impairment annually as of July 1, or when circumstances indicate that the carrying value may not be recoverable. The test is performed by comparing the fair value of each of our reporting units, which are consistent with our operating segments, to its carrying value, including recorded goodwill. If the carrying value exceeds the fair value, we measure impairment by comparing the implied fair value of goodwill to its carrying value, and any impairment determined would be recorded in the current period. Our purchased intangible assets are subject to amortization. In cases that we determine that a pattern in which the intangible asset will be consumed can be reliably determined we use an amortization method that best matches that expected pattern. If we believe that such a pattern cannot be reliably determined, we use a straight-line method of amortization. Impairment of Long-Lived Assets: We generally evaluate the carrying values of long-lived assets other than goodwill for impairment only if events or changes in facts and circumstances indicate that carrying values may not be recoverable. If we determined there was any impairment, we would measure it by comparing the fair value of the related asset to its carrying value and record the difference in the current period. Fair value is generally determined by identifying estimated discounted cash flows to be generated by those assets. We have not recorded any impairment of long-lived assets for the years ended September 30, 2017, 2016 and 2015. Recognizing assets acquired and liabilities assumed in a business combination: Acquired assets and assumed liabilities are recognized in a business combination on the basis of their fair values at the date of acquisition. We assess fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, using a variety of methods including income approaches such as present value techniques or cost approaches such as the estimation of current selling prices and replacement values. Fair value of the assets acquired and liabilities assumed, including intangible assets and contingent payments, are measured based on the assumptions and estimations with regards to the variable factors such as the amount and timing of future cash flows for the asset or liability being measured, appropriate risk-adjusted discount rates, nonperformance risk, or other factors that market participants would consider. Upon acquisition, we determine the estimated economic lives of the acquired intangible assets for amortization purposes, which are based on the underlying expected cash flows of such assets. Adjustments to inventory are based on the fair market value of inventory and amortized into income based on the period in which the underlying inventory is sold. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Actual results may vary from projected results and assumptions used in the fair value assessments. Customer Advances : We receive advances, performance-based payments and progress payments from customers that may exceed revenues recognized to date on certain contracts, including contracts with agencies of the U.S. government. We classify such advances, other than those reflected as a reduction of receivables or inventories, as current liabilities. Contingencies : We establish reserves for loss contingencies when, in the opinion of management, the likelihood of liability is probable and the extent of such liability is reasonably estimable. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, our defenses and our experience in similar cases or proceedings as well as our assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. We may increase or decrease our legal reserves in the future, on a matter-by-matter basis, to account for developments in such matters. Derivative Financial Instruments: 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 cost of sales. 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 income (loss) until the underlying hedged item is recognized in cost of sales, or the forecasted transaction is no longer probable of occurring. If a derivative does not qualify as a highly effective hedge, a change in fair value is immediately recognized in earnings. We formally document 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. Defined Benefit Pension Plans: Some of our employees are covered by defined benefit pension plans. The net periodic cost of our plans is determined using several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of return on plan assets. We recognize on a plan-by-plan basis the funded status of our defined benefit pension plans as either an asset or liability on our balance sheets, with a corresponding adjustment to accumulated other comprehensive income (loss), net of tax, in shareholders’ equity. The funded status is measured as the difference between the fair value of the plan assets and the benefit obligation of the plan. Comprehensive Income (Loss): Other comprehensive income (loss), which is comprised of unrealized gains and losses on foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, net of tax, unrealized gains and losses on available-for-sale securities, net of tax and pension liability adjustments, net of tax is included in our Consolidated Statement of Comprehensive Income (Loss) as other comprehensive income (loss). Revenue Recognition: We generate revenue from the sale of products such as mass transit fare collection systems, air and ground combat training systems, and products with C4ISR capabilities. We also generate revenue from services we provide such as specialized military training exercises, including live, virtual and constructive training exercises and support, and we operate and maintain fare systems for mass transit customers. We classify sales as products or services in our Consolidated Statements of Operations based on the attributes of the underlying contracts. We recognize sales and profits under our long-term fixed-price contracts which require a significant amount of development effort in relation to total contract value using the cost-to-cost percentage-of-completion method of accounting. We record sales and profits based on the ratio of contract costs incurred to estimated total contract costs at completion. Contract costs include material, labor and subcontracting costs, as well as an allocation of indirect costs. For contracts with the U.S. federal government, general and administrative costs are included in contract costs; however, for purposes of revenue measurement, general and administrative costs are not considered contract costs for any other customers. Costs are recognized as incurred for contracts accounted for under the cost-to-cost percentage-of-completion method. For certain other long-term, fixed price production contracts not requiring substantial development effort we use the units-of-delivery percentage-of-completion method as the basis to measure progress toward completing the contract and recognizing sales. The units-of delivery measure recognizes revenues as deliveries are made to the customer generally using unit sales values in accordance with the contract terms. Costs of sales are recorded as deliveries are made. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on deliveries. For long-term fixed price contracts, we only include amounts representing contract change orders, claims or other items in the contract value when they can be reliably estimated and we consider realization probable. Changes in estimates of sales, costs and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. A significant change in one or more of these estimates could have a material effect on our consolidated financial position or results of operations. We record sales under cost-reimbursement-type contracts as we incur the costs. The Federal Acquisition Regulations provide guidance on the types of costs that we will be reimbursed in establishing the contract price. We consider incentives or penalties and awards applicable to performance on contracts in estimating sales and profits, and record them when there is sufficient information to assess anticipated contract performance. We do not recognize incentive provisions that increase or decrease earnings based solely on a single significant event until the event occurs. We occasionally enter into contracts that include multiple deliverables such as the construction or upgrade of a system and subsequent services to operate and maintain the delivered system. For such contracts, arrangement consideration is allocated at the inception of the arrangement to all deliverables using the relative-selling-price method. Under the relative-selling-price method, the selling price for each deliverable is determined using vendor specific objective evidence (VSOE) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists for a deliverable, which is typically the case for our contracts, the guidance requires us to determine the best estimate of the selling price, which is the price at which we would sell the deliverable if it were sold on a standalone basis. In estimating the selling price of the deliverable on a standalone basis, we consider our overall pricing models and objectives, including the factors we contemplate in negotiating our contracts with our customers. The pricing models and objectives that we use are generally based upon a cost-plus margin approach, with the estimated margin based in part on qualitative factors such as perceived customer pricing sensitivity and competitive pressures. Once the contract value is allocated to the separate deliverables under a multiple-element arrangement, revenue recognition guidance relevant to each contractual element is followed. For example, for the long-term construction portion of a contract we generally use the percentage-of completion method and for the services portion we generally recognize the service revenues on a straight-line basis over the contractual service period or based on measurable units of work performed or incentives earned. For certain of our multiple-element arrangements, the contract specifies that we will not be paid upon the delivery of certain units of accounting, but rather we will be paid when subsequent performance obligations are satisfied. Generally, in these cases the allocation of arrangement consideration to the up-front deliverables is limited, in some cases to zero, and revenue is reduced, in some cases to zero for the delivery of up-front units of accounting. In such situations, if the costs associated with the delivered item exceed the amount of allocable arrangement consideration, we defer the direct and incremental costs associated with the delivered item that are in excess of the allocated arrangement consideration as capitalized contract costs. We assess recoverability of these costs by comparing the recorded asset to the deferred revenue in excess of the transaction price allocated to the remaining deliverables in the arrangement. Capitalized contract costs are subsequently recognized in income in a manner that is consistent with the revenue recognition pattern for the arrangement as a whole. If no pattern of revenue recognition can be reasonably predicted for the arrangement, the capitalized costs are amortized on a straight-line basis. Revenue under our service contracts with the U.S. government is recorded under the cost-to cost percentage-of-completion method. Award fees and incentives related to performance under these service contracts are accrued during the performance of the contract based on our historical experience and estimates of success with such awards. Revenue under contracts for services other than those with the U.S. government and those associated with design, development, or production activities is recognized either as services are performed or when a contractually required event has occurred, depending on the contract. For non-U.S. government service contracts that contain measurable units of work performed we recognize sales when the units of work are completed. Certain of our transportation systems service contracts contain service level or system usage incentives, for which we recognize revenues when the incentive award is fixed or determinable. These contract incentives are generally based upon monthly service levels or monthly performance and become fixed or determinable on a monthly basis. However, one of our legacy transportation systems service contracts that terminated in late fiscal 2015 contained annual system usage incentive which were based upon system usage compared to annual baseline amounts. For this contract the annual system usage incentives were not considered fixed or determinable until the end of the contract year for which the incentives are measured, which fell within the second quarter of our fiscal year. The follow-on contract to this transportation systems service contract did not include an annual system usage incentive. Revenue under non-U.S. government service contracts that do not contain measurable units of work performed, which is generally the case for our service contracts, is recognized on a straight-line basis over the contractual service period, unless evidence suggests that the revenue is earned, or obligations fulfilled, in a different manner. Costs incurred under these services contracts are expensed as incurred. We make provisions in the current period to fully recognize any anticipated losses on contracts, other than non-U.S. government service contracts. If we receive cash on a contract prior to revenue recognition, and for contracts that are accounted for on a units-of-delivery method, that is in excess of inventoried costs, we classify it as a customer advance on the balance sheet. In addition, we are subject to audit of incurred costs related to many of our U.S. government contracts. These audits could produce different results than we have estimated for revenue recognized on our cost-based contracts with the U.S. government; however, our experience has been that our costs are acceptable to the government. Research and Development (R&D): We record the cost of company sponsored R&D activities as the expenses are incurred. The cost of engineering and product development activities incurred in connection with the performance of work on our contracts is included in cost of sales as they are directly related to contract performance. Stock-Based Compensation: Restricted stock units (RSUs) are granted to eligible employees and directors and represent rights to receive shares of common stock at a future date if vesting occurs. RSUs granted to date have either time-based vesting or performance-based vesting. Compensation expense for all RSUs is measured at fair value at the grant date and recognized based upon the number of RSUs that ultimately vest. We determine the fair value of RSUs based on the closing market price of our common stock on the grant date. The grant date of the performance-based RSUs takes place when the grant is authorized and the specific achievement goals are communicated. Compensation expense for time-based vesting awards is recorded on a straight-line basis over the requisite service period, adjusted by estimated forfeiture rates. Vesting of performance-based RSUs is tied to achievement of specific company goals over the measurement period, which is generally a three-year period from the date of the grant. For purposes of measuring compensation expense for performance-based RSUs, at each reporting date we estimate the number of shares for which vesting is deemed probable based on management’s expectations regarding achievement of the relevant performance criteria, adjusted by estimated forfeiture rates. Compensation expense for the number of shares ultimately expected to vest is recognized on a straight-line basis over the requisite service period for the performance-based RSUs. The recognition of compensation expense associated with performance-based RSUs requires judgment in assessing the probability of meeting the performance goals. For performance-based RSUs, there may be significant expense recognition or reversal of recognized expense in periods in which there are changes in the assessed probability of meeting performance-based vesting criteria. Income Taxes : Our provision for income taxes includes federal, state, local and foreign income taxes. We provide deferred income taxes on temporary differences between assets and liabilities for financial reporting and tax purposes as measured by enacted tax rates we expect to apply when the temporary differences are settled or realized. Tax law and rate changes are reflected in income in the period such changes are enacted. We establish valuation allowances for deferred tax assets when the amount of future taxable income we expect is not likely to support the realization of the temporary differences. Beginning in the second quarter of fiscal year 2017 we began providing for U.S. deferred taxes on unremitted foreign earnings. We include interest and penalties related to income taxes, including unrecognized tax benefits, within the income tax provision. ASC 740-20 requires total income tax expense or benefit to be allocated among continuing operations, discontinued operations, extraordinary items, other comprehensive income and items charged directly to shareholders’ equity. Net Income (Loss) Per Share: Basic net income (loss) per share (EPS) is computed by dividing the net income (loss) from continuing operations for the period by the weighted average number of common shares outstanding during the period, including vested RSUs. In periods with a net income from continuing operations, 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 RSUs. Dilutive RSUs 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 from continuing operations, common equivalent shares are not included in the computation of diluted EPS, because to do so would be anti-dilutive. The weighted-average number of shares outstanding used to compute net income (loss) per common share were as follows (in thousands): Year Ended September 30, 2017 2016 2015 Weighted average shares - basic 27,106 26,976 26,872 Effect of dilutive securities — — 66 Weighted average shares - diluted 27,106 26,976 26,938 Number of anti-dilutive securities 967 825 — Recent Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance 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. Adoption of ASU 2014-09 will be required for us beginning in the first quarter of fiscal 2019 and we have determined that we will not adopt ASU 2014-09 earlier than required. 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. We have assigned a task force within management to lead our implementation efforts and we have engaged outside advisors to assist. We are currently in the process of analyzing the impact of the adoption of the new standard on our various revenue streams. Under ASU 2014-09, revenue is recognized as control transfers to the customer. As such, revenue for our fixed-price development and production contracts will generally be recognized over time as costs are incurred, which is consistent with the revenue recognition model we currently use for the majority of these contracts. For certain of our fixed-price production contracts where we currently recognize revenue as units are delivered, in most cases the accounting for those contracts will change under ASU 2014-09 such that we will recognize revenue as costs are incurred. This change will generally result in an acceleration of revenue as compared with our current revenue recognition method for those contracts. Approximately 29% of our net sales used the units-of-delivery method to recognize revenue

Acquisitions and Divestitures

Acquisitions and Divestitures	12 Months Ended
	Sep. 30, 2017
Acquisitions and Divestitures
Acquisitions and Divestitures	NOTE 2—ACQUISITIONS AND DIVESTITURES Sale of CGD Services On May 31, 2018, we completed the previously announced sale of all of the issued and outstanding capital stock of Cubic Global Defense, Inc. and Omega Training Group, Inc., each a subsidiary in our former CGD Services segment, pursuant to the Stock Purchase Agreement dated April 18, 2018, by and among Cubic, CGD and Purchaser. In accordance with the terms of the Stock Purchase Agreement, the Purchaser agreed to pay us $135.0 million in cash upon the closing of the transaction, adjusted for the estimated working capital of CGD Services at the date of the sale compared to a working capital target. In addition to the upfront cash payment, we are eligible to receive an additional cash payment of $3.0 million based on the achievement of pre-determined earn-out conditions related to the award of certain government contracts. We have received $133.8 million in connection with the sale and have recorded a receivable from the Purchaser of $3.7 million for the estimated amount due related to the working capital settlement. No amount has been recorded as a receivable related to the potential achievement of earn-out conditions based upon our probability assessment of the achievement of the required conditions. We recognized a loss of $6.1 million within discontinued operations for the nine months ended June 30, 2018 in conjunction with the sale, which was calculated as the excess of the carrying value of the net assets of CGD Services less the sales price in the Stock Purchase Agreement of $135.0 million less estimated selling costs of $4.2 million. As a result of the sale, the operating results and cash flows of CGD Services have been classified as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented and the assets and liabilities of CGD Services have been classified as assets and liabilities of discontinued operations in the Consolidated Balance Sheets for all periods presented. Income from discontinued operations, net of taxes, is comprised of the following (in thousands): Years Ended September 30, 2017 2016 2015 Net sales $ 378,152 $ 391,064 $ 402,146 Costs and expenses: Cost of sales 342,819 350,429 362,147 Selling, general and administrative expenses 17,487 16,430 16,766 Amortization of purchased intangibles 2,752 4,764 7,690 Restructuring costs 208 574 559 Other income (46) (93) (131) Earnings from discontinued operations before income taxes 14,932 18,960 15,115 Income tax provision 401 5,145 2,371 Net income from discontinued operations $ 14,531 $ 13,815 $ 12,744 The carrying amounts of CGD Services segment assets and liabilities that were classified as assets and liabilities of discontinued operations are as follows (in thousands): September 30, September 30, 2017 2016 Accounts receivable, net $ 74,710 $ 80,138 Other current assets 1,190 1,667 Property and equipment, net 466 2,391 Goodwill 94,350 94,350 Purchased intangibles, net 8,637 11,389 Other noncurrent assets (5,179) (4,425) Total assets 174,174 185,510 Accounts payable and other liabilities 36,862 32,771 Net assets $ 137,312 $ 152,739 Business Acquisitions Each of the following acquisitions has been treated as a business combination for accounting purposes. The results of operations of each acquired business has been included in our consolidated financial statements since the respective date of each acquisition. Deltenna Ltd In July 2017, we acquired all of the outstanding capital stock of Deltenna Ltd (Deltenna), a wireless infrastructure company specializing in the design and delivery of radio and antenna communication solutions. Deltenna designs and manufactures cutting-edge integrated wireless products including compact LTE base stations, broadband range extenders for areas of poor coverage and rugged antennas. The addition of Deltenna, headquartered in Chippenham, U.K., will enhance tactical communication and training capabilities of our CGD Systems businesses by effectively delivering high-capacity data networks within challenging and rigorous environments. Deltenna’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 0.1 $ — $ — Operating loss (0.2) — — Net loss after taxes (0.2) — — Deltenna’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ — $ — $ — Acquisition-related expenses 0.2 — — The estimated acquisition-date fair value of consideration is $5.3 million, which is comprised of cash paid of $4.0 million plus the estimated fair value of contingent consideration of $1.3 million. Under the purchase agreement, we will pay the sellers up to $7.0 million of contingent consideration if Deltenna meets certain sales goals from the date of acquisition through the year ending September 30, 2022. The contingent consideration liability will be 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 Deltenna was paid for with funds from existing cash resources. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ 1.0 Technology 1.1 Other net assets acquired (liabilities assumed) (0.3) Net identifiable assets acquired 1.8 Goodwill 3.5 Net assets acquired $ 5.3 The estimated fair values of assets acquired and liabilities assumed, including purchased intangibles as well as the estimated fair value of contingent consideration are preliminary estimates pending the finalization of our valuation analyses. The estimated 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 used the excess earnings approach and the technology asset valuations used the relief from royalty approach. The intangible assets are being amortized using straight-line methods based on the expected period of cash flows from the assets, over a weighted average useful life of eight years from the date of acquisition. At the time of the acquisition, the goodwill resulting from the acquisition was deemed to consist primarily of the synergies expected from combining the operations of Deltenna with our legacy CGD Systems operating segment, and strengthening our capability of developing and integrating products in our defense portfolio, as well as the value of the assembled workforce that became our employees following the close of the acquisition. The amount recorded as goodwill was assigned to our legacy CGD Systems segment. As described in Note 16, we concluded that CMS became a separate operating segment beginning on October 1, 2017 distinct from our legacy CGD Systems operating segment. In conjunction with the changes to reporting units, on October 1, 2017 we reassigned goodwill between CGD Systems and CMS based on their relative fair values. The amount recorded as goodwill in connection with the acquisition of Deltenna 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 Deltenna for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 0.3 2019 0.3 2020 0.3 2021 0.3 2022 0.3 Thereafter 0.6 Vocality On November 30, 2016, we acquired all of the outstanding capital stock of Vocality International (Vocality), based in Shackleford, U.K., a provider of embedded technology which unifies communications platforms, enhances voice quality, increases video performance and optimizes data throughput. Vocality contributes to our C4ISR portfolio of products for our CMS segment and expands our defense customer base. Vocality also sells its technology in the broadcast, oil and gas, mining, and maritime markets. Vocality’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 1.5 $ — $ — Operating loss (2.9) — — Net loss after taxes (2.6) — — Vocality’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 0.6 $ — $ — Acquisition-related expenses 1.6 — — P rior to our acquisition of Vocality, Vocality had a number of share-based payment awards in place to its employees. Due to the structure of some of these share-based payment awards and the acceleration of vesting of certain of these awards in connection with our acquisition of Vocality, we were required to recognize compensation expense, rather than purchase consideration, for the portion of our purchase price that we paid to the seller that was distributed to the recipients of these awards. Consequently, we recognized $0.4 million of compensation expense within general and administrative expenses during the year ended September 30, 2017 related to this matter. This compensation is reflected in Vocality’s acquisition-related expenses and results of operations above for fiscal year 2017. The acquisition date fair value of consideration is $9.6 million, which is comprised of cash paid of $9.7 million plus additional held back consideration to be paid in the future estimated at $0.3 million, less the $0.4 million of cash paid to the seller recorded as compensation expense described above . The acquisition of Vocality was paid for with funds from existing cash resources. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ 2.1 Technology 2.4 Trade name 0.4 Inventory 1.7 Accounts payable and accrued expenses (0.4) Other net assets acquired (liabilities assumed) (0.5) Net identifiable assets acquired 5.7 Goodwill 3.9 Net assets acquired $ 9.6 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 valuation used the excess earnings approach, and the technology and trade name asset valuations used the relief from royalty approach. The intangible assets are being 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 nine years from the date of acquisition. At the time of the acquisition, the goodwill resulting from the acquisition was deemed to consist primarily of the synergies expected from combining the operations of Vocality with our legacy CGD Systems operating segment, and strengthening our capability of developing and integrating products in our defense portfolio, as well as the value of the assembled workforce that became our employees following the close of the acquisition. The amount recorded as goodwill was assigned to our legacy CGD Systems segment. As described in Note 16, we concluded that CMS became a separate operating segment beginning on October 1, 2017 distinct from our legacy CGD Systems operating segment. In conjunction with the changes to reporting units, on October 1, 2017 we reassigned goodwill between CGD Systems and CMS based on their relative fair values. The amount recorded as goodwill in connection with the acquisition of Vocality 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 Vocality for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 0.8 2019 0.7 2020 0.6 2021 0.6 2022 0.5 Thereafter 1.3 GATR On February 2, 2016, we acquired all of the outstanding capital stock of GATR Technologies, LLC (GATR), a defense systems business based in Huntsville, Alabama which manufactures expeditionary satellite communication terminal solutions. GATR expands our satellite communications and networking applications technologies for our CMS segment and expands our customer base. GATR’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 84.3 $ 43.1 $ — Operating income (loss) 1.9 (26.4) — Net income (loss) after taxes 1.4 (23.0) — GATR’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 12.7 $ 9.7 $ — Gains (losses) for changes in fair value of contingent consideration 3.2 (0.7) — Acquisition-related expenses 0.6 22.0 — GATR’s operating results for the year ended September 30, 2016 were significantly impacted by the GAAP accounting requirements regarding business combinations. Prior to our acquisition of GATR, GATR had a number of share-based payment awards in place to its employees. Due to the structure of certain of these share-based payment awards and the acceleration of vesting of certain of these awards in connection with our acquisition of GATR, we were required to recognize compensation expense, rather than purchase consideration, for the portion of our purchase price that we paid to the seller that was distributed to the recipients of these awards. Consequently, we recognized $18.5 million of compensation expense within general and administrative expenses during the year ended September 30, 2016 related to this matter. Of this $18.5 million amount, $15.4 million is not deductible for tax purposes. The acquisition-date fair value of consideration is $220.5 million, which is comprised of cash paid of $236.1 million plus the fair value of contingent consideration of $2.5 million, less $18.1 million of cash paid to the seller that was recognized as expense in fiscal 2016. Under the purchase agreement, we will pay the sellers up to $7.5 million of contingent consideration if GATR meets certain gross profit goals for the 12 month periods ended February 28, 2017 and 2018. The contingent consideration liability will be 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 GATR was paid for predominantly with the proceeds of borrowings on our revolving credit agreement in 2016. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ 51.7 Backlog 3.4 Technology 10.7 Non-compete agreements 1.2 Trade name 4.7 Accounts receivable 10.6 Inventory 3.4 Income tax receivable 5.1 Accounts payable and accrued expenses (2.4) Deferred tax liabilities (23.8) Net identifiable assets acquired 64.6 Goodwill 155.9 Net assets acquired $ 220.5 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, the non-compete agreements used the with-and-without approach, and the technology and trade name asset valuations used the relief from royalty approach. The intangible assets are being 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 nine years from the date of acquisition. At the time of the acquisition, the goodwill resulting from the acquisition was deemed to consist primarily of the synergies expected from combining the operations of GATR with our legacy CGD Systems business, including the synergies expected from combining its satellite communications and networking applications technologies with our C4ISR products and other products in our legacy CGD Systems portfolio. The goodwill was also deemed to include the value of the assembled workforce that became our employees following the close of the acquisition and was allocated to our legacy CGD Systems segment. As described in Note 16, we concluded that CMS became a separate operating segment beginning on October 1, 2017 distinct from our legacy CGD Systems operating segment. In conjunction with the changes to reporting units, on October 1, 2017 we reassigned goodwill between CGD Systems and CMS based on their relative fair values. The amount recorded as goodwill is generally not expected to be deductible for tax purposes. The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of GATR for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 11.1 2019 9.8 2020 8.3 2021 6.9 2022 5.6 Thereafter 7.6 TeraLogics On December 21, 2015, we acquired all of the assets of TeraLogics, LLC, an Ashburn, Virginia-based provider of real-time full motion video processing, exploitation and dissemination for the Department of Defense, the intelligence community and commercial customers. TeraLogics’ ability to develop real-time video analysis and delivery software for full motion video complements the existing tactical communications portfolio of our CMS segment and expands our customer base. TeraLogic’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 19.7 $ 14.2 $ — Operating loss (1.8) (2.9) — Net loss after taxes (1.2) (1.6) — TeraLogic’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 3.5 $ 3.0 $ — Losses for changes in fair value of contingent consideration (1.3) (1.5) — Acquisition-related expenses 0.2 2.3 — During the year ended September 30, 2016 we incurred a $1.3 million charge for compensation expense incurred related to amounts paid to TeraLogics employees upon the close of the acquisition. This compensation expense is reflected in TeraLogic’s acquisition-related expenses and the results of TeraLogic’s operations above. The acquisition-date fair value of consideration is $33.9 million, which is comprised of cash paid of $28.9 million plus the acquisition-date fair value of contingent consideration of $5.0 million. Under the purchase agreement, we will pay the sellers up to $9.0 million of contingent consideration. Of this amount, up to $6.0 million will be paid if TeraLogics meets certain revenue thresholds in fiscal years 2016, 2017 and 2018; and up to $3.0 million will be paid if specific contract extensions are exercised by TeraLogics customers through fiscal 2018. The contingent consideration liability will be 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 TeraLogics is being paid for with a combination of funds from our existing cash resources and borrowings on our revolving credit facility. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ 6.7 Backlog 5.6 Software 2.5 Non-compete agreements 0.1 Accounts receivable 1.4 Accounts payable and accrued expenses (0.5) Other net assets acquired (liabilities assumed) (0.1) Net identifiable assets acquired 15.7 Goodwill 18.2 Net assets acquired $ 33.9 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, the non-compete agreements used the with-and-without approach, and the software used the replacement cost new less cost decrements for obsolescence approach. The intangible assets are being 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 seven years from the date of acquisition. At the time of the acquisition, the goodwill resulting from the acquisition was deemed to consist primarily of the synergies expected from combining the operations of TeraLogics with our legacy CGD Systems business, including the synergies expected from combining TeraLogics real-time video capabilities with our existing tactical communications product portfolio as well as the value of the assembled workforce who became our employees following the close of the acquisition. The amount recorded as goodwill was assigned to our legacy CGD Systems segment. As described in Note 16, we concluded that CMS became a separate operating segment beginning on October 1, 2017 distinct from our legacy CGD Systems operating segment. In conjunction with the changes to reporting units, on October 1, 2017 we reassigned goodwill between CGD Systems and CMS based on their relative fair values. The amount recorded as goodwill in connection with the acquisition of TeraLogics is expected to be deductible for tax purposes. The estimated amortization expense amounts related to the intangible assets recorded in connection with our acquisition of TeraLogics for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 2.8 2019 2.1 2020 1.4 2021 0.8 2022 0.5 Thereafter 0.9 H4 Global On November 4, 2015, we acquired all of the assets of H4 Global, a U.K.-based provider of simulation-based training solutions which complements our CGD Systems segment training portfolio. H4 Global’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 3.3 $ 2.2 $ — Operating loss (1.1) (0.6) — Net loss after taxes (0.9) (0.4) — H4 Global’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 0.1 $ 0.1 $ — Gains for changes in fair value of contingent consideration — 0.4 — Acquisition-related expenses — 0.1 — The acquisition-date fair value of consideration is $1.9 million, which is comprised of cash paid of $0.9 million plus the fair value of contingent consideration of $1.0 million. Under the purchase agreement, we will pay the sellers up to $4.1 million of contingent consideration, based upon the value of contracts entered over the five-year period beginning on the acquisition date. The contingent consideration liability will be re-measured to fair value at each reporting date until the contingencies are resolved and any changes in fair value will be recognized in earnings. The fair value of the net assets acquired and liabilities assumed was not material. Consequently, virtually the entire purchase price of $1.9 million was recorded as goodwill, which is comprised of expected synergies and assembled workforce. The amount recorded as goodwill was allocated to our legacy CGD Systems segment. As described in Note 12, we concluded that CMS became a separate operating segment beginning on October 1, 2017 distinct from our legacy CGD Systems operating segment. In conjunction with the changes to reporting units, on October 1, 2017 we reassigned goodwill between CGD Systems and CMS based on their relative fair values. The amount recorded as goodwill is not expected to be deductible for tax purposes. DTECH On December 16, 2014 we acquired all of the outstanding capital stock of DTECH Labs, Inc. (DTECH). Based in Ashburn, Virginia, DTECH is a provider of modular networking and baseband communications equipment that adds networking capability to our secure communications business. This acquisition expands the portfolio of product offerings and the customer base of our CGD Systems segment. DTECH’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 39.0 $ 34.5 $ 45.8 Operating income (loss) 2.4 (3.0) 0.9 Net income (loss) after taxes 1.3 (2.1) 0.5 DTECH’s operating results above included $23.0 million and $14.2 million in intercompany sales for the years ended September 30, 2017 and 2016, respectively, as well as the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 6.8 $ 8.0 $ 9.2 Gains (losses) for changes in fair value of contingent consideration 2.0 0.5 (3.6) Acquisition-related expenses 0.3 0.9 2.1 The cost of the acquisition was $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 through fiscal year 2017. The acquisition-date fair value of the consideration was $99.4 million. The contingent consideration liability has been re-measured to fair value at each reporting date until the contingencies were resolved and changes in fair value have been recognized in earnings. The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date (in millions): Customer relationships $ 35.1 Non-compete agreements 0.7 Backlog 2.1 Cash 0.9 Accounts receivable 5.4 Inventory 4.2 Warranty obligation (0.4) Tax liabilities (3.3) Accounts payable and accrued expenses (3.4) Other net assets acquired 0.2 Net identifiable assets acquired 41.5 Goodwill 57.9 Net assets acquired $ 99.4 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 agreements used the with-and-without approach. The intangible assets are being 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 seven years from the date of acquisition and the amortization is expected to be deductible for tax purposes. At the time of the acquisition, the goodwill resulting from the acquisition was deemed to consist primarily of the synergies expected from combining the operations of DTECH with our legacy 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 as well as the value of the assembled workforce that became our employees following the close of the acquisition. The amount recorded as goodwill was allocated to our legacy CGD Systems segment. As described in Note 16, we concluded that CMS became a separate operating segment beginning on October 1, 2017 distinct from our legacy CGD Systems operating segment. In conjunction with the changes to reporting units, on October 1, 2017 we reassigned goodwill between CGD Systems and CMS based on their relative fair values. The amount recorded as goodwill is expected to be deductible for tax purposes. The estimated amortization expense amounts related to the intangible assets recorded in connection with our acquisition of DTECH for fiscal years 2018 through 2021 is as follows (in millions): Year Ended September 30, 2018 5.5 2019 4.1 2020 2.8 2021 1.5 Pro forma information The following unaudited pro forma information presents our consolidated results of operations as if Deltenna, Vocality, GATR, TeraLogics, H4 Global and DTECH had been included in our consolidated results since October 1, 2015 (in millions): Year Ended September 30, 2017 2016 Net sales $ 1,109.4 $ 1,097.5 Net loss from continuing operations $ (26.1) $ (13.7) 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. 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, 2015, and it does not purport to project our future operating results.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Sep. 30, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	NOTE 3—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 certain of our cash equivalents are based upon quoted prices for identical instruments in active markets. The fair value of our other cash equivalents and our available for sale marketable securities is based upon a discounted cash flow model and approximate cost. The marketable securities in the rabbi trust are carried at fair value, which is based upon 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 contingent consideration liabilities to the sellers of businesses that we have acquired are revalued to their 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 contingent consideration liabilities that are based upon revenue targets or gross margin targets are based upon a real option approach. The contingent consideration liabilities that are valued using this real option approach include the Deltenna contingent consideration, a portion of the TeraLogics contingent consideration, the DTECH contingent consideration, and the GATR contingent consideration. Under this real option approach, each payment was modeled using long digital options written on the underlying revenue or gross margin metric. The strike price for each option is the respective revenue or gross margin as specified in the related agreement, and the spot price is calibrated to the revenue or gross margin forecast by calculating the present value of the corresponding projected revenues or gross margins using a risk-adjusted discount rate. The volatility for the underlying revenue metrics was based upon analysis of comparable guideline public companies and the volatility factor used in the September 30, 2017 valuations was 40% for Deltenna, 15% for TeraLogics and 15% for GATR. The volatility factor used in the September 30, 2016 valuations was 17% for TeraLogics, 18% for DTECH and 17% for GATR. 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 fair value of the portion of the TeraLogics contingent consideration that is based on customer execution of contract extensions was estimated using a probability weighted approach. Subject to the terms and conditions of the TeraLogics purchase agreement, contingent consideration will be paid over a period commencing on the closing date and ending on December 21, 2018. The fair value of the contingent consideration was determined by applying probabilities of achieving the periodic payment to each period’s potential payment, and summing the present value of any future payments. The fair value of the H4 Global contingent consideration was estimated using a probability weighted approach. Subject to the terms and conditions of the H4 Global purchase agreement, contingent consideration will be paid over a five year term that commenced on October 1, 2015 and ends on September 30, 2020. The payments will be calculated based on the award of certain contracts during the specified period. The fair value of the contingent consideration was determined by applying probabilities to different scenarios, and summing the present value of any future payments. The inputs to each of the contingent consideration fair value models include 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 dates 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. As of September 30, 2017, the following table summarizes the change in fair value of our Level 3 contingent consideration liability (in thousands): DTECH H4 TeraLogics (Contract Extensions) TeraLogics (Revenue Targets) GATR Deltenna Total Balance as of October 1, 2015 $ 7,507 $ — $ — $ — $ — $ — $ 7,507 Initial measurement recognized at acquisition — 1,602 2,000 3,100 2,500 — 9,202 Cash paid to seller (5,000) — (1,000) — — — (6,000) Adjustment to the provisional acquisition date valuation — (616) (100) — — — (716) Total remeasurement (gain) loss recognized in earnings (507) (419) 500 1,000 700 — 1,274 Balance as of September 30, 2016 $ 2,000 $ 567 $ 1,400 $ 4,100 $ 3,200 $ — $ 11,267 Initial measurement recognized at acquisition — — — — — 1,328 1,328 Cash paid to seller — — (1,000) (2,500) — — (3,500) Adjustment to the provisional acquisition date valuation — — — — — — — Total remeasurement (gain) loss recognized in earnings (2,000) 24 400 850 (3,200) 48 (3,878) Balance as of September 30, 2017 $ — $ 591 $ 800 $ 2,450 $ — $ 1,376 $ 5,217 The following table presents assets and liabilities measured and recorded at fair value on our balance sheets on a recurring basis (in thousands): September 30, 2017 September 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 8,501 $ — $ — $ 8,501 $ 57,455 $ — $ — $ 57,455 Marketable securities — — — — — 12,996 — 12,996 Current derivative assets — 2,591 — 2,591 — 14,770 — 14,770 Noncurrent derivative assets — 1,128 — 1,128 — 1,201 — 1,201 Total assets measured at fair value $ 8,501 $ 3,719 $ — $ 12,220 $ 57,455 $ 28,967 $ — $ 86,422 Liabilities Current derivative liabilities — 3,456 — 3,456 — 13,752 — 13,752 Noncurrent derivative liabilities — 1,128 — 1,128 — 1,334 — 1,334 Contingent consideration to seller of Deltenna — — 1,376 1,376 — — — — Contingent consideration to seller of GATR — — — — — — 3,200 3,200 Contingent consideration to seller of TeraLogics - contract extensions — — 800 800 — — 1,400 1,400 Contingent consideration to seller of TeraLogics - revenue targets — — 2,450 2,450 — — 4,100 4,100 Contingent consideration to seller of H4 Global — — 591 591 — — 567 567 Contingent consideration to seller of DTECH — — — — — — 2,000 2,000 Total liabilities measured at fair value $ — $ 4,584 $ 5,217 $ 9,801 $ — $ 15,086 $ 11,267 $ 26,353 We carry certain financial instruments, including accounts receivable, short-term borrowings, accounts payable and accrued liabilities at cost, which we believe approximates fair value because of the short-term maturity of these instruments. 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. The following table presents the estimated fair value and carrying value of our long-term debt (in millions): September 30, September 30, 2017 2016 Fair value $ 202.1 $ 210.0 Carrying value $ 200.0 $ 201.0 We did not have any significant non-financial assets or liabilities measured at fair value on a non-recurring basis in 2017, 2016, or 2015 other than assets and liabilities acquired in business acquisitions.

Accounts Receivable

Accounts Receivable	12 Months Ended
	Sep. 30, 2017
Accounts Receivable
Accounts Receivable	NOTE 4—ACCOUNTS RECEIVABLE The components of accounts receivable under long-term contracts are as follows (in thousands): September 30, 2017 2016 U.S. Government Contracts: Amounts billed $ 53,450 $ 34,785 Recoverable costs and accrued profits on progress completed--not billed 36,341 33,729 89,791 68,514 Commercial Customers: Amounts billed 131,532 95,173 Recoverable costs and accrued profits on progress completed--not billed 150,610 160,008 282,142 255,181 371,933 323,695 Less unbilled amounts not currently due--commercial customers (17,457) (20,926) $ 354,476 $ 302,769 A portion of recoverable costs and accrued profits on progress completed is billable under progress or milestone payment provisions of the related contracts. The remainder of these amounts is billable upon delivery of products or furnishing of services, with an immaterial amount subject to retainage provisions of the contracts. It is anticipated that we will bill and collect substantially the entire unbilled portion of receivables identified as current assets under progress billing provisions of the contracts or upon completion of milestones and/or acceptance by the customers during fiscal 2018. 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 September 30, 2017 under transportation systems contracts in the U.S. and Australia, and under a CGD Systems contract in Italy based upon the payment terms in the contracts.

Inventories

Inventories	12 Months Ended
	Sep. 30, 2017
Inventories
Inventories	NOTE 5—INVENTORIES Significant components of inventories are as follows (in thousands): September 30, September 30, 2017 2016 Finished products $ 4,369 $ 10,018 Work in process and inventoried costs under long-term contracts 84,131 62,570 Materials and purchased parts 10,163 12,102 Customer advances (10,948) (18,328) Net inventories $ 87,715 $ 66,362 At September 30, 2017, work in process and inventoried costs under long-term contracts includes approximately $4.3 million in costs incurred outside the scope of work or in advance of a contract award, compared to $0.7 million as of September 30, 2016. We believe it is probable that we will recover the costs inventoried at September 30, 2017, plus a profit margin, under contract change orders or awards within the next year. Costs we incur for certain U.S. federal government contracts include general and administrative costs as allowed by government cost accounting standards. The amounts remaining in inventory at September 30, 2017 and 2016 were $2.5 million and $2.3 million, respectively.

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment
Property, Plant and Equipment	NOTE 6—PROPERTY, PLANT AND EQUIPMENT Significant components of property, plant and equipment are as follows (in thousands): September 30, 2017 2016 Land and land improvements $ 16,139 $ 15,854 Buildings and improvements 52,625 49,856 Machinery and other equipment 73,235 68,001 Software 62,297 51,191 Leasehold improvements 13,298 9,432 Construction and internal-use software development in progress 23,156 8,150 Accumulated depreciation and amortization (127,530) (108,559) $ 113,220 $ 93,925 As a part of our efforts to upgrade our current information systems, early in fiscal 2015 we purchased new enterprise resource planning (ERP) software and began the process of designing and configuring this software and other software applications to manage our operations. Costs incurred in the development of internal-use software and software applications, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development, are capitalized as computer software costs. Costs incurred outside of the application development stage, or that are types of costs that do not meet the capitalization requirements, are expensed as incurred. Amounts capitalized are included in property, plant and equipment 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. Through September 30, 2017 we have incurred costs of $113.3 million related to the purchase and development of our ERP system, including $40.6 million, $45.2 million, and $27.5 million of costs incurred during fiscal years 2017, 2016 and 2015, respectively. We have capitalized $16.7 million, $20.3 million, and $16.0 million of qualifying software development costs as internal-use software development in progress during fiscal years 2017, 2016, and 2015, respectively. We have recognized expense for $23.9 million, $24.9 million, and $11.5 million of these costs in fiscal years 2017, 2016, and 2015, respectively, for costs that did not qualify for capitalization. Amounts that were expensed in connection with the development of these systems are classified within selling, general and administrative expenses in the Consolidated Statements of Operations. Certain components of our ERP system became ready for their intended use and were placed into service on April 1, 2016 and on October 1, 2016 at which time the capitalized costs of developing those components were transferred into completed software and we began amortizing these costs over the seven year estimated useful life of these software components. We continue to capitalize costs associated with the development of other ERP components that are not yet ready for their intended use. Our provisions for depreciation of plant and equipment and amortization of leasehold improvements and software amounted to $17.8 million, $11.0 million and $9.3 million in 2017, 2016 and 2015, respectively. Generally, we use straight-line methods for depreciable real property over estimated useful lives ranging from 15 to 39 years or for leasehold improvements, the term of the underlying lease if shorter than the estimated useful lives. We use accelerated methods (declining balance and sum-of-the-years-digits) for machinery and equipment and software other than our ERP system over estimated useful lives ranging from 5 to 10 years.

Goodwill and Purchased Intangib

Goodwill and Purchased Intangible Assets	12 Months Ended
	Sep. 30, 2017
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets	NOTE 7—GOODWILL AND PURCHASED INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the two years ended September 30, 2017 are as follows (in thousands): Cubic Global Transportation Defense Systems Systems Total Net balances at October 1, 2015 $ 55,974 $ 87,575 $ 143,549 Acquisitions (see Note 2) — 175,150 175,150 Foreign currency exchange rate changes (6,344) 241 (6,103) Net balances at September 30, 2016 49,630 262,966 312,596 Acquisitions — 5,885 5,885 Foreign currency exchange rate changes 1,240 1,841 3,081 Net balances at September 30, 2017 $ 50,870 $ 270,692 $ 321,562 As described in Note 16, we concluded that CMS became a separate operating segment beginning on October 1, 2017. In conjunction with the changes to reporting units, we reassigned goodwill between CGD Systems and CMS based on their relative fair values on October 1, 2017. In the table above, all of the goodwill that was reassigned to CMS on October 1, 2017 remains reflected in the legacy CGD Systems reporting unit. Until October 1, 2017 the goodwill impairment tests were performed at the reporting units that existed through September 30, including our legacy CGD systems reporting unit. We complete our annual goodwill impairment test each year as of July 1. The first step of the goodwill impairment test compares the fair value of our reporting units to their carrying values. We estimate the fair value of our reporting units primarily based on the discounted projected cash flows of the underlying operations and based upon market multiples from publicly traded comparable companies. For our 2017 impairment test, the estimated fair value of all three of our reporting units that existed through September 30, 2017 exceeded their respective carrying values. As such, there was no impairment of goodwill in 2017. The estimated fair value for our Transportation Systems reporting unit exceeded its carrying value by over 100%, while the estimated fair values of our legacy CGD Systems and CGD Services reporting units each exceeded their carrying values by over 10%. Significant management judgment is required in the forecast of future operating results that are used in our impairment analysis. The estimates we used are consistent with the plans and estimates that we use to manage our business. Assumptions used in our discounted cash flow approach for our legacy CGD Systems reporting unit also included growth rates for sales and margins at greater levels than we have achieved in recent years due to our expectation that businesses recently acquired by this reporting unit will achieve growth at higher rates than the unit’s legacy operations. Although we believe our underlying assumptions supporting these assessments are reasonable, if our forecasted sales and margin growth rates, timing of growth, or the discount rate vary from our forecasts, we may be required to perform interim analyses in 2018 that could expose us to material impairment charges in the future. Purchased Intangible Assets: The table below summarizes our purchased intangible assets (in thousands): September 30, 2017 September 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Contract and program intangibles $ 151,602 $ (90,988) $ 60,614 $ 146,898 $ (65,257) $ 81,641 Other purchased intangibles 42,813 (13,569) 29,244 38,695 (8,322) 30,373 Total $ 194,415 $ (104,557) $ 89,858 $ 185,593 $ (73,579) $ 112,014 Total amortization expense for 2017, 2016 and 2015 was $30.2 million, $29.4 million and $19.9 million, respectively. The table below shows our expected amortization of purchased intangibles as of September 30, 2017, for each of the next five years and thereafter (in thousands): Cubic Global Cubic Transportation Defense Mission Systems Systems Solutions Total 2018 $ 4,944 $ 805 $ 20,203 $ 25,952 2019 2,886 530 16,761 20,177 2020 947 315 13,214 14,476 2021 698 261 9,814 10,773 2022 598 261 6,651 7,510 Thereafter 297 893 9,780 10,970 $ 10,370 $ 3,065 $ 76,423 $ 89,858

Financing Arrangements

Financing Arrangements	12 Months Ended
	Sep. 30, 2017
Financing Arrangements
Financing Arrangements	NOTE 8—FINANCING ARRANGEMENTS Long-term debt consists of the following (in thousands): September 30, 2017 2016 Series A senior unsecured notes payable to a group of insurance companies, interest fixed at 3.35% $ 50,000 $ 50,000 Series B senior unsecured notes payable to a group of insurance companies, interest fixed at 3.35% 50,000 50,000 Series C senior unsecured notes payable to a group of insurance companies, interest fixed at 3.70% 25,000 25,000 Series D senior unsecured notes payable to a group of insurance companies, interest fixed at 3.93% 75,000 75,000 Mortgage note from a U.K. financial institution, with quarterly installments of principal and interest at 6.48% — 1,012 200,000 201,012 Less unamortized debt issuance costs (239) (271) Less current portion — (450) $ 199,761 $ 200,291 Maturities of long-term debt for each of the five years in the period ending September 30, 2022, are as follows: 2018 — $0.0 million; 2019 — $0.0 million; 2020 — $10.7 million; 2021 — $35.7 million; 2022 — $35.7 million. Interest paid amounted to $14.8 million, $11.0 million and $4.8 million in 2017, 2016 and 2015, respectively. 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. In addition, pursuant to the agreement, on July 17, 2015, we issued an additional $25.0 million of senior unsecured notes, bearing interest at a rate of 3.70% and maturing on March 12, 2025. Interest payments on the notes issued in 2013 and 2015 are due semi-annually and principal payments are due from 2021 through 2025. The agreement pertaining to the aforementioned notes also contained a provision that the coupon rate would increase by a further 0.50% should the company’s leverage ratio exceed a certain level. On February 2, 2016 we revised the note purchase agreement and we issued an additional $75.0 million of senior unsecured notes bearing interest at 3.93% and maturing on March 12, 2026. Interest payments on these notes are due semi-annually and principal payments are due from 2020 through 2026. At the time of the issuance of this last series of notes, certain terms and conditions of the note purchase and private shelf agreement were revised in coordination with the revision and expansion of the revolving credit agreement as discussed below in order to increase our leverage capacity. We have a committed revolving credit agreement with a group of financial institutions in the amount of $400.0 million which expires in August 2021 (Revolving Credit Agreement). At September 30, 2017, the weighted average interest rate on outstanding borrowings under the Revolving Credit Agreement was 3.24%. Debt issuance and modification costs of $2.3 million and $1.3 million were incurred in connection with February 2, 2016 and August 11, 2016 amendments to the Revolving Credit Agreement, respectively. Costs incurred in connection with establishment of and amendments to this credit agreement are recorded in other assets on our Consolidated Balance Sheets, and are being amortized as interest expense using the effective interest method over the stated term of the Revolving Credit Agreement. At September 30, 2017, the Company’s total debt issuance costs have an unamortized balance of $2.8 million. The available line of credit is reduced by any letters of credit issued under the Revolving Credit Agreement. As of September 30, 2017, there were borrowings totaling $55.0 million under this agreement and there were letters of credit outstanding totaling $81.3 million, which reduce the available line of credit to $263.7 million. The $81.3 million of letters of credit includes both financial letters of credit and performance guarantees. Until June 2017, we had a secured letter of credit facility agreement with a bank in the U.K. At September 30, 2016, there were letters of credit outstanding under this agreement of $62.7 million. Restricted cash at September 30, 2016 of $69.4 million was held on deposit in the U.K. as collateral in support of this facility. In June 2017, this agreement was terminated and the associated letters of credit were transferred to the Revolving Credit Agreement described above. The cash that formerly collateralized the secured credit facility was used to make principal payments to reduce our outstanding short-term borrowings. Our revolving credit agreement and note purchase and private shelf agreement each contain a number of customary covenants, including requirements for us to maintain certain interest coverage and leverage ratios and restrictions on our and certain of our subsidiaries’ abilities to, among other things, incur additional debt, create liens, consolidate or merge with any other entity, or transfer or sell substantially all of their assets, in each case subject to certain exceptions and limitations. The occurrence of any event of default under these agreements may result in all of the indebtedness then outstanding becoming immediately due and payable. At March 31, 2017 we did not maintain the required leverage ratio. Therefore in May 2017 certain terms and conditions of the revolving credit agreement and note purchase and private shelf agreement were further revised to allow us to maintain a higher level of leverage as of March 31, 2017 and for the remainder of the 2017 fiscal year. The revisions to the agreements do not impact the required leverage ratios in fiscal 2018 and subsequent years. This revision also contains a provision that the coupon rate may increase on all of the term notes discussed above by up to 0.75% should our leverage ratio exceed certain levels. In connection with this revision, we incurred $0.4 million of costs, primarily for amounts charged by our lenders in connection with these modifications. These costs were recorded in May 2017 as a reduction in the carrying value of the related debt liability and which will be amortized into additional interest expense over the life of the related debt. We maintain a cash account with a bank in the United Kingdom for which the funds are restricted as to use. The account is required to secure the customer’s interest in cash deposited in the account to fund our activities related to our performance under a fare collection services contract in the United Kingdom. The balance in the account as of September 30, 2017 was $8.4 million and is classified as restricted cash in our Consolidated Balance Sheets. As of September 30, 2017, we had letters of credit and bank guarantees outstanding totaling $94.5 million, which includes the $81.3 million of letters of credit on the Revolving Credit Agreement above and $13.2 million of letters of credit issued under other facilities. The total of $94.5 million of letters of credit and bank guarantees includes $77.4 million that guarantees either our performance or customer advances under certain contracts, and financial letters of credit of $17.1 million 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 a short-term borrowing arrangement in New Zealand totaling $0.5 million New Zealand dollars (equivalent to approximately $0.4 million) to help meet the short-term working capital requirements of our subsidiary. At September 30, 2017, no amounts were outstanding under this borrowing arrangement. 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 September 30, 2017, these agreements have no restrictions on 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 $7.6 million and $8.2 million as of September 30, 2017 and 2016, respectively.

Commitments

Commitments	12 Months Ended
	Sep. 30, 2017
Commitments
Commitments	NOTE 9—COMMITMENTS We lease certain office, manufacturing and warehouse space, vehicles, and other office equipment under non-cancelable operating leases expiring in various years through 2030. These leases, some of which may be renewed for periods up to 10 years, generally require us to pay all maintenance, insurance and property taxes. Several leases are subject to periodic adjustment based on price indices or cost increases. Rental expense (net of sublease income of $0.2 million in 2017, $0.3 million in 2016 and $0.3 million in 2015) for all operating leases amounted to $10.5 million, $9.6 million and $8.6 million in 2017, 2016 and 2015, respectively. Future minimum payments, net of minimum sublease income, under non-cancelable operating leases with initial terms of one year or more consist of the following for the next five years and thereafter, as of September 30, 2017 (in thousands): 2018 $ 10,115 2019 8,759 2020 7,734 2021 7,177 2022 4,657 Thereafter 11,273 $ 49,715

Income Taxes

Income Taxes	12 Months Ended
	Sep. 30, 2017
Income Taxes
Income Taxes	NOTE 10—INCOME TAXES On May 31, 2018, we completed the previously announced sale of all of the issued and outstanding capital stock of Cubic Global Defense, Inc. and Omega Training Group, Inc. As such, we have classified the CGD Services business as discontinued operations. The recast tax provision follows ASC 740-270-45-8 which requires the tax expense or benefit from prior periods be divided into components following a with and without methodology. In connection, and when applicable, ASC 740-20 requires total income tax expense or benefit to be allocated among continuing operations, discontinued operations, extraordinary items, other comprehensive income and items charged directly to shareholders’ equity. For the year ended September 30, 2017, the original tax expense of $15.1 million has been divided into $14.7 million and $0.4 million between continuing operations and discontinued operations, respectively. The below information represents continuing operations for all years presented. Income (loss) from continuing operations before income taxes includes the following components (in thousands): Years ended September 30, 2017 2016 2015 (in thousands) United States $ (70,566) $ (76,136) $ (33,827) Foreign 59,484 49,699 90,623 Total $ (11,082) $ (26,437) $ 56,796 Significant components of the provision (benefit) for income taxes from continuing operations are as follows: Years ended September 30, 2017 2016 2015 (in thousands) Current: Federal $ (4,070) $ (1,679) $ (4,567) State 878 (618) 617 Foreign 13,869 8,249 20,266 Total current 10,677 5,952 16,316 Deferred: Federal 2,257 (16,256) 24,834 State 569 (4,333) 4,857 Foreign 1,155 280 619 Total deferred 3,981 (20,309) 30,310 Provision (benefit) for income taxes $ 14,658 $ (14,357) $ 46,626 The reconciliation of income tax computed at the U.S. federal statutory tax rate to income tax expense is as follows: Years ended September 30, 2017 2016 2015 (in thousands) Tax expense at U.S. statutory rate $ (3,877) $ (9,252) $ 19,875 State income taxes, net of federal tax effect (923) (1,754) (584) Nondeductible expenses (1) (169) 7,765 1,487 Change in reserve for tax contingencies (4,435) 27 (1,192) Change in deferred tax asset valuation allowance (2) 17,374 (5,382) 40,869 Foreign income taxed at less than statutory rate (3) 9,912 (2,999) (11,924) Research and development credits (4) (3,459) (2,542) (1,897) Other 235 (220) (8) Provision (benefit) for income taxes $ 14,658 $ (14,357) $ 46,626 (1) In 2016, we recorded $6.3 million of tax expense related to nondeductible acquisition-related compensation expenses. (2) In 2017, we recorded $13.1 million of tax expense related to an increase in the valuation allowance related to tax credit carryforwards generated in the current year. In 2016, we recorded a net tax benefit primarily related to a business combination in which we acquired significant U.S. deferred tax liabilities as well as a utilization and subsequent release of the deferred tax valuation allowance in Australia. In 2015, we recorded a full valuation allowance on U.S. net deferred tax assets with a charge to expense of $35.8 million. (3) In 2017, we provided for deferred taxes on all unremitted foreign earnings, as the earnings are no longer considered permanently reinvested resulting in a charge of $9.5 million. (4) In both 2016 and 2015, we recorded tax benefits of $1.0 million and $1.2 million, respectively, related to the reinstatement of the research and development tax credit. Significant components of our deferred tax assets and liabilities are as follows: September 30, 2017 2016 (in thousands) Deferred tax assets: Accrued employee benefits $ 15,863 $ 12,044 Long-term contracts and inventory valuation reductions 13,974 12,422 Allowances for loss contingencies 4,212 3,786 Deferred compensation 4,830 4,369 Retirement benefits 6,214 12,282 Tax credit carryforwards 31,161 16,512 Net operating losses carryforwards 3,968 12,713 Other 2,509 2,563 Total gross deferred tax assets 82,731 76,691 Valuation allowance (57,106) (42,179) Total deferred tax assets 25,625 34,512 Deferred tax liabilities: Deferred revenue (3,729) (11,192) Unremitted foreign earnings (11,910) (2,347) Property, plant and equipment (3,137) (1,443) Intangible assets (9,713) (16,068) Foreign currency mark-to-market — (191) Other (158) (601) Total deferred tax liabilities (28,647) (31,842) Net deferred tax asset (liability) $ (3,022) $ 2,670 The deferred tax assets and liabilities for fiscal 2017 and 2016 include amounts related to various acquisitions. The total change in deferred tax assets and liabilities in fiscal 2017 includes changes that are recorded to other comprehensive income (loss) and Goodwill. We calculate deferred tax assets and liabilities based on differences between financial reporting and tax bases of assets and liabilities, and measure them using the enacted tax rates and laws that we expect will be in effect when the differences reverse. At September 30, 2017, we have federal and state income tax credit carryforwards of $21.9 million and $20.5 million, respectively, which will expire at various dates beginning in 2027. Such credit carryforwards (in thousands) expire as follows: U.S. foreign tax credits $ 15,567 U.S. research and development tax credits 6,303 2035-2037 State research and development tax credits 20,486 Do not expire We have federal, state and foreign net operating losses (in thousands) which expire as follows: U.S. net operating loss carryforwards $ — — State net operating loss carryforwards 37,138 2020-2037 Foreign net operating loss carryforwards 10,903 Do not expire During 2015, we evaluated our net U.S. deferred income taxes, which included an assessment of the cumulative income or loss over the prior-three year period and future periods, and concluded that a valuation allowance was required. After consideration of our recent history of U.S. losses, we continue to maintain a valuation allowance on net U.S. deferred tax assets as of September 30, 2017. As of September 30, 2017, a total valuation allowance of $57.1 million has been established against U.S. deferred tax assets, certain foreign operating losses and other foreign assets. For fiscal 2017, the valuation allowance was increased by $14.9 million, of which $17.4 million was recorded as a net tax expense in our Consolidated Statement of Operations, offset by amounts recorded through other comprehensive income (loss) related to retirement benefits. The non-cash charge to increase or decrease a valuation allowance does not have any impact on our cash flows, nor does such an allowance preclude us from using loss carryforwards or other deferred tax assets in the future. Until we re-establish a pattern of continuing profitability, in accordance with the applicable accounting guidance, U.S. income tax expense or benefit related to the recognition of deferred tax assets in the 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 Statement of Operations. If sufficient positive evidence arises in the future, any existing valuation allowance could be reversed as appropriate, decreasing income tax expense in the period that such conclusion is reached. We provide for U.S. income taxes on the earnings of foreign subsidiaries which are not considered indefinitely reinvested outside the U.S. Deferred income taxes, net of foreign tax credits, are provided for foreign earnings available for distribution. As of September 30, 2017, we have recorded a deferred tax liability of $11.9 million related to future taxes on our unremitted foreign earnings. Accounting for Uncertainty in Income Taxes During fiscal 2017 and 2016, the aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows: Years ended September 30, 2017 2016 (in thousands) Balance at beginning of year $ 16,932 $ 12,619 Additions (reductions) for tax positions taken in prior years: 399 3,641 Recognition of benefits from expiration of statutes (26) (359) Recognition of benefits from open years effectively settled (5,359) — Additions for tax positions related to the current year 1,302 986 Additions for tax positions related to current year acquisitions — 45 Balance at end of year $ 13,248 $ 16,932 At September 30, 2017 and 2016, the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $3.7 million and $7.5 million, respectively. During fiscal year 2018, it is reasonably possible that resolution of reviews by taxing authorities, both domestic and foreign, could be reached with respect to approximately $2.9 million of the unrecognized tax benefits depending on the timing of examinations or expiration of statute of limitations, either because our tax positions are sustained or because we agree to the disallowance and pay the related income tax. We recognize interest and/or penalties related to income tax matters in income tax expense. The amount of net interest and penalties recognized as a component of income tax expense during 2017, 2016 and 2015 was not material. Interest and penalties accrued at September 30, 2017 and 2016 amounted to $0.9 million and $1.6 million, respectively, bringing the total net liability for uncertain tax issues to $12.0 million and $15.5 million, respectively, as of September 30, 2017 and 2016. We are subject to ongoing audits from various taxing authorities in the jurisdictions in which we do business. As of September 30, 2017, the fiscal years open under the statute of limitations in significant jurisdictions include 2013 through 2017 in the U.S. We believe we have adequately provided for uncertain tax issues we have not yet resolved with federal, state and foreign tax authorities. Although not more likely than not, the most adverse resolution of these issues could result in additional charges to earnings in future periods. Based upon a consideration of all relevant facts and circumstances, we do not believe the ultimate resolution of uncertain tax issues for all open tax periods will have a material adverse effect upon our financial condition or results of operations. Cash amounts paid for income taxes, net of refunds received, were $1.6 million, $14.2 million and $15.2 million in 2017, 2016 and 2015, respectively.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	12 Months Ended
	Sep. 30, 2017
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 exchange forwards for periods typically up to three years. 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 income (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 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 September 30, 2017 and 2016 (in thousands): Notional Principal September 30, 2017 September 30, 2016 Instruments designated as accounting hedges: Foreign currency forwards $ 125,486 $ 158,664 Instruments not designated as accounting hedges: Foreign currency forwards $ 35,117 $ 115,070 Included in the amounts not designated as accounting hedges at September 30, 2017 and 2016 were foreign currency forwards with notional principal amounts of $18.5 million and $78.4 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. Unrealized gains of $0.1 million and unrealized gains of $8.2 million were recognized in other income (expense), net for the fiscal years ended September 30, 2017 and 2016, respectively, related to foreign currency forward contracts not designated as accounting hedges. The notional principal amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of our exposure to credit or market loss. Credit risk represents our 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. Our 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 fiscal years ended September 30, 2017 and 2016. Although the table above reflects the notional principal amounts of our 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. We generally enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. We present our derivative assets and derivative liabilities at their gross fair values. We did not have any derivative instruments with credit-risk related contingent features that would require us to post collateral as of September 30, 2017 or 2016. The table below presents the fair value of our derivative financial instruments that qualify for hedge accounting as well as their classification on the consolidated balance sheets as of September 30, 2017 and 2016 (in thousands): Fair Value Balance Sheet Location September 30, 2017 September 30, 2016 Asset derivatives: Foreign currency forwards Other current assets $ 2,591 $ 14,769 Foreign currency forwards Other noncurrent assets 1,128 1,201 $ 3,719 $ 15,970 Liability derivatives: Foreign currency forwards Other current liabilities $ 3,456 $ 13,752 Foreign currency forwards Other noncurrent liabilities 1,128 1,333 Total $ 4,584 $ 15,085 The tables below present gains and losses recognized in other comprehensive income (loss) for the years ended September 30, 2017 and 2016 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): Years ended September 30, 2017 2016 Gains (losses) Gains (losses) Gains (losses) reclassified into reclassified into recognized in earnings - Gains (losses) earnings - Derivative Type OCI Effective Portion recognized in OCI Effective Portion Foreign currency forwards $ (2,200) $ 551 $ (806) $ 1,522 Unrealized gains of $0.1 million and unrealized losses of $0.1 million from derivative instruments and hedging activities classified as not highly effective were recognized in other income (expense), net for the years ended September 30, 2017 or 2016, respectively. The amount of estimated unrealized net losses from cash flow hedges which are expected to be reclassified to earnings in the next twelve months is $0.6 million, net of income taxes.

Pension, Profit Sharing and Oth

Pension, Profit Sharing and Other Benefit Plans	12 Months Ended
	Sep. 30, 2017
PENSION, PROFIT SHARING AND OTHER BENEFIT PLANS
Pension, Profit Sharing and Other Benefit Plans	NOTE 12—PENSION, PROFIT SHARING AND OTHER BENEFIT PLANS 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 Consolidated Balance Sheets and totaled $11.4 million and $10.6 million at September 30, 2017 and 2016, 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 September 30, 2017 and 2016 were $5.3 million and $3.6 million, respectively, which were comprised entirely of life insurance contracts. The carrying value of the life insurance contracts is based on the cash surrender value of the policies. 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 Consolidated Statements of Operations. Defined Contribution Plans We have profit sharing and other defined contribution retirement plans that provide benefits for most U.S. employees. Certain of these plans require us to match a portion of eligible employee contributions up to specified limits. These plans also allow for additional company contributions at the discretion of the Board of Directors. We also have a defined contribution plan for European employees that were formerly eligible for the European defined benefit plan described below. Under this plan, we match a portion of the eligible employee contributions up to limits specified in the plan. Company contributions to defined contribution plans aggregated $13.3 million, $12.1 million and $10.9 million in 2017, 2016 and 2015, respectively. Employee Stock Purchase Plan We sponsor a noncompensatory Employee Stock Purchase Plan (“ESPP”), which allows eligible employees to purchase common stock of the Company at a discount rate of 5% of the market price per share on the last trading day of the offering period. Annual employee contributions are limited to $25,000, are voluntary, and made through a bi-weekly payroll deduction. Defined Benefit Pension Plans Certain employees in the U.S. are covered by a noncontributory defined benefit pension plan for which benefits were frozen as of December 31, 2006 (curtailment). The effect of the U.S. plan curtailment is that no new benefits have been accrued after that date. Approximately one-half of our European employees are covered by a contributory defined benefit pension plan for which benefits were frozen as of September 30, 2010. Although the effect of the European plan curtailment is that no new benefits will accrue after September 30, 2010, the plan is a final pay plan, which means that benefits will be adjusted for increases in the salaries of participants until their retirement or departure from the company. The European plan was amended in 2014 to reduce the amount of participant compensation used in computing the pension liability for certain participants. U.S. and European employees hired subsequent to the dates of the curtailment of the respective plans are not eligible for participation in the defined benefit plans. During fiscal year 2016, we partially settled our remaining obligations associated with the U.S. plan. The plan offered certain retired, vested participants the opportunity to voluntarily elect to receive their benefits as an immediate lump sum distribution. The lump sum distribution was paid out from plan assets in September 2016 and resulted in a settlement loss of $2.7 million, which is recorded in other non-operating expense for the year ended September 30, 2016. Our funding policy for the defined benefit pension plans provides that contributions will be at least equal to the minimum amounts mandated by statutory requirements. Based on our known requirements for the U.S. and U.K. plans, as of September 30, 2017, we expect to make contributions of approximately $5.1 million in 2018. September 30 is used as the measurement date for these plans. The unrecognized amounts recorded in accumulated other comprehensive income (loss) will be subsequently recognized as net periodic pension cost, consistent with our historical accounting policy for amortizing those amounts. We will recognize actuarial gains and losses that arise in future periods and are not recognized as net periodic pension cost in those periods as increases or decreases in other comprehensive income (loss), net of tax, in the period they arise. We adjust actuarial gains and losses recognized in other comprehensive income (loss) as they are subsequently recognized as a component of net periodic pension cost. The unrecognized actuarial gain or loss included in accumulated other comprehensive income (loss) at September 30, 2017 and expected to be recognized in net pension cost during fiscal 2018 is a loss of $2.7 million ($2.1 million net of income tax). The unrecognized actuarial gain was $10.1 million in fiscal year 2017, which was primarily driven by an increase in discount rates used in the calculation of the net benefit obligation, changes in mortality assumptions, and higher investment returns on plan assets. No plan assets are expected to be returned to us in 2018. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the defined benefit pension plans were as follows (in thousands): September 30, 2017 2016 Projected benefit obligation $ 235,097 $ 241,117 Accumulated benefit obligation 235,097 241,117 Fair value of plan assets 209,722 194,253 The following table sets forth changes in the projected benefit obligation and fair value of plan assets and the funded status for these defined benefit plans (in thousands): September 30, 2017 2016 Change in benefit obligations: Net benefit obligation at the beginning of the year $ 241,117 $ 227,527 Service cost 617 595 Interest cost 7,091 8,972 Actuarial (gain) loss (10,082) 41,583 Gross benefits paid (7,549) (8,365) Settlements — (10,424) Foreign currency exchange rate changes 3,903 (18,771) Net benefit obligation at the end of the year 235,097 241,117 Change in plan assets: Fair value of plan assets at the beginning of the year 194,253 201,502 Actual return on plan assets 14,915 23,775 Employer contributions 5,354 4,271 Gross benefits paid (7,549) (8,365) Settlements — (10,424) PBGC Premium paid (348) (362) Administrative expenses (547) (925) Foreign currency exchange rate changes 3,644 (15,219) Fair value of plan assets at the end of the year 209,722 194,253 Unfunded status of the plans (25,375) (46,864) Unrecognized net actuarial loss 58,572 72,909 Net amount recognized $ 33,197 $ 26,045 Amounts recognized in Accumulated OCI Liability adjustment to OCI $ (58,572) $ (72,909) Deferred tax asset 15,033 19,236 Valuation allowance on deferred tax asset (2,107) (5,153) Accumulated other comprehensive loss $ (45,646) $ (58,826) The components of net periodic pension cost (benefit) were as follows (in thousands): September 30, 2017 2016 2015 Service cost $ 617 $ 595 $ 670 Interest cost 7,091 8,972 9,073 Expected return on plan assets (12,928) (13,182) (13,835) Amortization of actuarial loss 3,700 1,869 705 Settlement loss — 2,671 — Administrative expenses 474 177 163 Net pension cost (benefit) $ (1,046) $ 1,102 $ (3,224) Years ended September 30, 2017 2016 2015 Weighted-average assumptions used to determine benefit obligation at September 30: Discount rate Rate of compensation increase Weighted-average assumptions used to determine net periodic benefit cost for the years ended September 30: Discount rate Expected return on plan assets Rate of compensation increase The long-term rate of return assumption represents the expected average rate of earnings on the funds invested or to be invested to provide for the benefits included in the benefit obligations. That assumption is determined based on a number of factors, including historical market index returns, the anticipated long-term asset allocation of the plans, historical plan return data, plan expenses, and the potential to outperform market index returns. We have the responsibility to formulate the investment policies and strategies for the plans’ assets. Our overall policies and strategies include: maintain the highest possible return commensurate with the level of assumed risk, and preserve benefit security for the plans’ participants. We do not direct the day-to-day operations and selection process of individual securities and investments and, accordingly, we have retained the professional services of investment management organizations to fulfill those tasks. The investment management organizations have investment discretion over the assets placed under their management. We provide each investment manager with specific investment guidelines by asset class. The target ranges for each major category of the plans’ assets at September 30, 2017 are as follows: Allocation Asset Category Range Equity securities 20% to 55% Debt securities 25% to 75% Cash 0% to 55% Real estate 0% to 10% Our defined benefit pension plans invest in cash and cash equivalents, equity securities, fixed income securities, pooled separate accounts and common collective trusts. Our plans also invest in diversified growth funds that hold underlying investments in equities, fixed-income securities, commodities, and real estate. The following table presents the fair value of the assets of our defined benefit pension plans by asset category and their level within the fair value hierarchy (in thousands). See Note 3 for a description of each level within the fair value hierarchy. All assets measured at the net asset value (NAV) practical expedient in the table below are invested in pooled separate accounts or common collective trusts which do not have publicly quoted prices. The fair value of the pooled separate accounts and common collective trusts are determined based on the net asset value of the underlying investments. The fair value of the underlying investments held by the pooled separate accounts and common collective trusts, other than real estate investments, is generally based upon quoted prices in active markets. The fair value of the underlying investments comprised of real estate properties is determined through an appraisal process which uses valuation methodologies including comparisons to similar real estate and discounting of income streams. September 30, 2017 September 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Plan assets held at fair value: Cash equivalents $ 2,665 $ — $ — $ 2,665 $ 3,071 $ — $ — $ 3,071 Plan assets held at net asset value practical expedient*: Equity Funds 101,433 83,877 Fixed Income Funds 84,188 72,219 Diversifies Growth Funds 16,646 27,525 Real Estate Funds 4,790 7,561 Total assets held at net asset value practical expedient: $ 207,057 $ 191,182 Total Plan Assets $ 209,722 $ 194,253 * Plan assets measured at fair value using NAV (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy. The pension plans held no direct positions in Cubic Corporation common stock as of September 30, 2017 and 2016. We expect to pay the following pension benefit payments, which reflect expected future service, as appropriate, (in thousands): 2018 $ 8,330 2019 8,753 2020 9,148 2021 9,358 2022 9,543 2022-2026 50,890

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Sep. 30, 2017
Stockholders' Equity
Stockholders' Equity	NOTE 13—STOCKHOLDERS’ EQUITY Long-Term Equity Incentive Plan In 2013, the Executive Compensation Committee of the Board of Directors (Compensation Committee) approved a long-term equity incentive award program. Through September 30, 2017, the Compensation Committee has granted 924,605 RSUs with time-based vesting and 993,298 RSUs 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 growth targets, and return on equity targets. The level at which Cubic’s performs against scalable targets over the performance periods will determine the percentage of the RSUs that will ultimately vest. Through September 30, 2017, Cubic has granted 1,917,903 RSUs of which 451,608 have vested. The grant date fair value of each RSU is the fair market value of one share of our common stock at the grant date. At September 30, 2017, 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 417,882. The following table summarizes our RSU activity: Unvested Restricted Stock Units Weighted-Average Number of Shares Grant-Date Fair Value Unvested at October 1, 2015 759,902 $ 47.24 Granted 471,627 43.72 Vested (130,678) 46.94 Forfeited (211,722) 44.86 Unvested at September 30, 2016 889,129 45.98 Granted 395,913 46.20 Vested (158,243) 46.15 Forfeited (81,612) 48.32 Unvested at September 30, 2017 1,045,187 $ 45.86 As of September 30, 2017, approximately 698,129 shares remained available for future grants under our long-term equity incentive plan. On October 1, 2017, 123,237 RSUs vested.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Sep. 30, 2017
Stock-Based Compensation
Stock-Based Compensation	NOTE 14—STOCK-BASED COMPENSATION We recorded non-cash compensation expense related to stock-based awards of $5.0 million, $7.7 million and $7.4 million for the years ended September 30, 2017, 2016 and 2015, respectively, which was comprised of the following (in thousands): 2017 2016 2015 Cost of sales $ 338 $ 513 $ 362 Selling, general and administrative 4,674 7,235 7,045 $ 5,012 $ 7,748 $ 7,407 As of September 30, 2017, there was $31.5 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 $18.5 million. This amount is expected to be recognized over a weighted-average period of 1.8 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 September 30, 2017. 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.

Legal Matters

Legal Matters	12 Months Ended
	Sep. 30, 2017
Legal Matters
Legal Matters	NOTE 15—LEGAL MATTERS In October 2014, a lawsuit was filed in the United States District Court, Northern District of Illinois against us and one of our transit customers alleging infringement of various patents held by the plaintiff, seeking judgment that we have infringed on plaintiff’s patents; regular and treble damages; requiring an accounting of sales, profits, royalties and damages owed plaintiffs; pre and post judgment interest; an award of costs, fees and expenses, an injunction prohibiting the continuing infringement of the patents; and any other relief the court deems just and equitable. We are vigorously defending the lawsuit. We are also undertaking defense of our customer in this matter pursuant to our contractual obligations to that customer. The court made several rulings in our favor concerning the validity of the plaintiff’s patents at issue. The plaintiff appealed those rulings and the Federal Circuit Court of Appeals upheld the District Court’s rulings. While these are favorable ruling for us, the case has yet to be dismissed as the plaintiff evaluates its legal options. Accordingly, we cannot estimate the probability of loss or any range of estimate of possible loss at this time. We are not a party to any other material pending proceedings and we consider all other matters to be ordinary proceedings incidental to our 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.

Business Segment Information

Business Segment Information	12 Months Ended
	Sep. 30, 2017
Business Segment Information
Business Segment Information	NOTE 16—BUSINESS SEGMENT INFORMATION We define our operating segments and reportable segments based on the way our chief executive officer, who we have concluded is our chief operating decision maker, manages our operations for purposes of allocating resources and assessing performance and we continually reassess our operating segment and reportable segment designation based upon these criteria. Through September 30, 2017 we operated in three primary business segments: CTS, CGD Services, and CGD Systems. CTS designs, produces, installs and services electronic revenue collection systems for mass transit projects, including railways and buses. CGD Services provides training, operations, intelligence, maintenance, technical and other services to the U.S. government and allied nations. CGD Systems performs work under U.S. and foreign government contracts relating to electronic defense systems and equipment. CGD Systems products include customized military range instrumentation, laser based training systems, and virtual simulation systems. In 2016 we formalized the structure of our CMS business unit within our CGD Systems operating segment. CMS combines and integrates our command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) and secure communications operations. Following the formalization of the structure of our CMS business, our chief executive officer began receiving reports of our business activities in multiple different formats and began to use the results of the CMS business activities for certain aspects of resource allocation decisions and performance assessments. However, based upon our September 30, 2017 assessment of our operating segments and reportable segments we concluded based upon factors such as the nature of the business activities and customers, and the nature of information presented to our Board of Directors, that CMS was not an operating segment at September 30, 2017. In the first quarter of fiscal 2018 additional aspects of resource allocation and performance assessment began being made at the CMS level. As such, we concluded that CMS became a separate operating segment and reportable segment beginning on October 1, 2017. Consequently, we began reporting segment information for the CMS reportable segment separately from CGD Systems and applicable prior period amounts have been adjusted retrospectively to reflect the reportable segment change. In addition, on May 31, 2018, Cubic completed the previously announced sale of the subsidiaries that comprised the CGD Services segment to an unrelated entity. As a result of the sale, CGD Services is accounted for as a discontinued operation for all periods presented. As a result of the changes described above, these financial statements reflect our operating segments and reportable segments for all periods presented as CTS, CMS, and CGD Systems exclusive of CGD Services. We evaluate performance and allocate resources based on total segment operating profit or loss. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are immaterial and are eliminated in consolidation. Our reportable segments are business units that offer different products and services. Operating results for each segment are reported separately to senior corporate management to make decisions as to the allocation of corporate resources and to assess performance. Business segment financial data is as follows (in millions): Year Ended September 30, 2017 2016 2015 Sales: Cubic Transportation Systems $ 578.6 $ 586.4 $ 566.8 Cubic Global Defense Systems 360.2 374.7 369.6 Cubic Mission Solutions 168.9 109.5 92.5 Total sales $ 1,107.7 $ 1,070.6 $ 1,028.9 Operating income (loss): Cubic Transportation Systems $ 39.8 $ 57.5 $ 75.9 Cubic Global Defense Systems 28.1 19.9 15.3 Cubic Mission Solutions (9.3) (37.0) 3.1 Unallocated corporate expenses (56.0) (52.0) (33.9) Total operating income (loss) $ 2.6 $ (11.6) $ 60.4 Assets: Cubic Transportation Systems $ 335.1 $ 338.2 $ 410.0 Cubic Global Defense Systems 280.1 211.8 195.9 Cubic Mission Solutions 390.5 404.4 145.3 Corporate 156.4 364.8 351.5 Discontinued Operations 174.2 185.5 197.6 Total assets $ 1,336.3 $ 1,504.7 $ 1,300.3 Depreciation and amortization: Cubic Transportation Systems $ 8.8 $ 8.2 $ 10.8 Cubic Global Defense Systems 10.4 7.5 7.8 Cubic Mission Solutions 23.8 21.2 9.3 Corporate 5.0 3.4 1.3 Total depreciation and amortization $ 48.0 $ 40.3 $ 29.2 Capital expenditures: Cubic Transportation Systems $ 6.9 $ 2.2 $ 2.0 Cubic Global Defense Systems 5.9 6.8 0.5 Cubic Mission Solutions 1.7 2.1 0.1 Corporate 22.4 21.0 19.6 Total expenditures for long-lived assets $ 36.9 $ 32.1 $ 22.2 Years ended September 30, 2017 2016 2015 Geographic Information: Sales (a): United States $ 522.8 $ 471.6 $ 397.8 United Kingdom 219.4 243.0 282.4 Canada 31.5 44.6 17.5 Australia 175.6 154.0 164.6 Middle East 64.8 71.0 67.7 Far East 47.9 40.0 39.3 Other 45.7 46.4 59.6 Total sales $ 1,107.7 $ 1,070.6 $ 1,028.9 (a) Sales are attributed to countries or regions based on the location of customers. Years ended September 30, 2017 2016 2015 Long-lived assets, net: United States $ 100.6 $ 83.9 $ 59.3 United Kingdom 11.7 9.4 8.6 Other foreign countries 7.3 5.3 4.3 Total long-lived assets, net $ 119.6 $ 98.6 $ 72.2 CGD Systems and CMS segment sales include $327.8 million, $267.5 million and $267.9 million in 2017, 2016 and 2015, respectively, of sales to U.S. government agencies. CTS segment sales include $147.3 million, $156.3 million and $183.2 million in 2017, 2016 and 2015, respectively, of sales under various contracts with our customer, Transport for London. No other customer accounts for 10% or more of our revenues for any periods presented. Changes in estimates on contracts for which revenue is recognized using the cost-to-cost percentage-of-completion method increased operating income by approximately $5.7 million in 2017 and decreased operating income by approximately $0.9 million and $13.8 million in 2016 and 2015, respectively. These adjustments increased net income from continuing operations by approximately $3.2 million ($0.12 per share) and decreased net income from continuing operations by approximately $0.5 million ($0.02 per share) and $7.5 million ($0.28 per share) in 2017, 2016 and 2015, respectively. Certain of our transportation systems service contracts contain service level or system usage incentives, for which we recognize revenues when the incentive award is fixed or determinable. These contract incentives are generally based upon monthly service levels or monthly performance and become fixed or determinable on a monthly basis. However, one of our legacy transportation systems service contracts that terminated in late fiscal 2015 contained annual system usage incentive which were based upon system usage compared to annual baseline amounts. For this contract the annual system usage incentives were not considered fixed or determinable until the end of the contract year for which the incentives are measured, which fell within the second quarter of our fiscal year. During the second quarter of fiscal year ended September 30, 2015, we recognized sales of $9.3 million related to annual system usage incentives on this transportation systems contract. In August 2015 we completed this contract and recognized an additional $3.1 million related to the final amount of system usage incentives. The recognition of these system usage incentives resulted in additional operating income of the same amounts in these respective periods. Upon completion of this contract we entered into a new service contract with this customer that is structured differently than the contract that completed in August 2015; the new contract does not have any significant system usage incentives. In fiscal years 2017, 2016, and 2015 we conducted a number of restructuring initiatives. In 2017 we incurred $2.3 million of charges for restructuring efforts which included $1.0 million of unallocated corporate expenses incurred to increase the centralization and efficiency of our manufacturing processes, and $0.9 million of restructuring charges incurred by our CGD Systems businesses related to the elimination of a level of management in CGD Systems simulator business. In 2016, we incurred $1.3 million of charges related to restructuring which included $0.3 million incurred by our CGD Systems segment as restructuring costs in connection with the formalization of our CMS business division described above. In addition, during fiscal 2016, our CTS business implemented a restructuring plan to reduce headcount by approximately 20 in order to rebalance our resources with work levels. CTS incurred resulting restructuring charges of $1.0 million in connection with this initiative. In 2015, we incurred $5.7 million of restructuring charges, including $4.6 million incurred by our CGD Systems segment related to restructuring our defense services and defense systems businesses into a single organization to better align our defense business organizational structure with customer requirements, increase operational efficiencies and improve collaboration and innovation across the company. In addition, CTS incurred $0.6 million of restructuring costs and we incurred $0.5 million of unallocated corporate expenses related to various restructuring activities. Restructuring charges incurred by business segment were as follows (in millions): Year Ended September 30, 2017 2016 2015 Restructuring costs: Cubic Transportation Systems $ 0.4 $ 1.0 $ 0.6 Cubic Global Defense Systems 0.9 0.3 4.6 Unallocated corporate expenses and other 1.0 — 0.5 Total restructuring costs $ 2.3 $ 1.3 $ 5.7 A summary of the activity relating to the restructuring liability and employee separation expenses, which is included within accrued compensation and other current liabilities within our Consolidated Balance Sheet, is as follows (in thousands): Employee Separation Balance as of October 1, 2015 $ 1,893 Accrued costs 1,278 Cash payments (2,618) Balance as of September 30, 2016 553 Accrued costs 2,260 Cash payments (1,838) Balance as of September 30, 2017 $ 975 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. The total costs of each of the restructuring plans described above are not expected to be significantly greater than the charges incurred to date. During fiscal year 2017 our CGD Systems segment made a $2.7 million loan to a private company in the U.S. that develops technologies for aircraft systems. CGD Systems also obtained warrants in the company in connection with the debt financing. Both the note receivable and warrants are classified as non-current assets on our Balance Sheet. The note receivable is held at amortized cost and the warrants are held at their historical cost. On a quarterly basis we consider whether any portion of the value of the warrants or note receivable may have been impaired. In fiscal 2017 we recognized an impairment loss of $0.2 million on the warrants based upon the estimated decrease in the fair value of this private company. If the private company that we financed does not successfully develop or commercialize its technologies, we could be required to recognize further impairments in the future.

Summary of Quarterly Results of

Summary of Quarterly Results of Operations (Unaudited)	12 Months Ended
	Sep. 30, 2017
Summary of Quarterly Results of Operations (Unaudited)
Summary of Quarterly Results of Operations (Unaudited)	NOTE 17—SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following is a summary of our quarterly results of operations for the fiscal years ended September 30, 2017 and 2016: Year Three Months Ended Ended Fiscal 2017 September 30 June 30 March 31 December 31 September 30 (in thousands, except per share data) Net sales $ 349,115 $ 266,184 $ 248,040 $ 244,370 $ 1,107,709 Operating income (loss) 21,207 (6,872) (6,084) (5,623) 2,628 Net income (loss) 13,155 (21,957) 461 (2,868) (11,209) Net income (loss) per share, basic 0.49 (0.81) 0.02 (0.11) (0.41) Net income (loss) per share, diluted 0.49 (0.81) 0.02 (0.11) (0.41) Year Three Months Ended Ended Fiscal 2016 September 30 June 30 March 31 December 31 September 30 (in thousands, except per share data) Net sales $ 308,824 $ 275,062 $ 265,016 $ 221,699 $ 1,070,601 Operating income (loss) 7,060 7,322 (15,618) (10,413) (11,649) Net income (loss) (7,493) 4,498 10,144 (5,414) 1,735 Net income (loss) per share, basic (0.29) 0.17 0.38 (0.20) 0.06 Net income (loss) per share, diluted (0.29) 0.17 0.38 (0.20) 0.06 Changes in estimates on contracts for which revenue is recognized using the cost-to-cost-percentage-of-completion method decreased operating income by approximately $1.6 million in the three months ended September 30, 2017 and increased operating income by approximately $2.3 million in the three months ended September 30, 2016. These adjustments decreased net income from continuing operations by approximately $1.1 million ($0.04 per share) in the three months ended September 30, 2017 and increased net income from continuing operations by approximately $1.5 million ($0.06 per share) in the three months ended September 30, 2016.

Summary of Significant Accoun26

Summary of Significant Accounting Polices (Policies)	12 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Polices
Organization and Nature of the Business	Organization and Nature of the Business: We design, develop and manufacture products which are mainly electronic in nature such as mass transit fare collection systems, air and ground combat training systems, and networked Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) products and systems. We provide services such as the operation and maintenance of fare systems for mass transit customers. Through September 30, 2017 our principal lines of business were transportation fare collection systems and services, defense systems, and defense services. On April 18, 2018, we entered into a stock purchase agreement with Nova Global Supply & Services, LLC (Purchaser), an entity affiliated with GC Valiant, LP, under which we agreed to sell our Cubic Global Defense Services (CGD Services) business to Purchaser. The sale closed on May 31, 2018. As a result of the sale, the operating results and cash flows of CGD Services have been classified as discontinued operations in the Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented and the assets and liabilities of CGD Services have been classified as assets and liabilities of discontinued operations in the Consolidated Balance Sheets for all periods presented. In addition, we concluded that CMS became a separate operating segment and reportable segment beginning on October 1, 2017. Applicable prior period amounts have been adjusted retrospectively to reflect the reportable segment change for all periods presented. Refer to “Note 2 – Acquisitions and Divestitures” for additional information about the sale of CGD Services and the related discontinued operation classification and “Note 16 – Business Segment Information” for additional information on the separate disclosure of operating and reportable segment information for CMS. Our transportation fare collection systems and services are sold primarily to large local government agencies worldwide. Our principal customers for defense products and services are the U.S. and foreign governments.
Principles of Consolidation	Principles of Consolidation: The consolidated financial statements include the accounts of Cubic Corporation, subsidiaries we control, and variable interest entities (VIE’s) for which Cubic is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.
Foreign Currency Transactions and Translation	Foreign Currency Transactions and Translation : Our reporting currency is the U.S. dollar. Assets and liabilities of foreign subsidiaries are translated at the spot rate in effect at the applicable reporting date, and our Consolidated Statements of Operations are translated at the average exchange rates in effect during the applicable periods. The resulting unrealized cumulative translation adjustments are recorded as a component of other comprehensive income (loss) in our Consolidated Statements of Comprehensive Income (Loss). Cash flows from our operations in foreign countries are translated at the average rate for the applicable period. The effect of exchange rates on cash balances held in foreign currencies are separately reported in our Consolidated Statements of Cash Flows. Transactions denominated in currencies other than our own subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in our Consolidated Balance Sheets related to such transactions result in transaction gains and losses that are reflected in our Consolidated Statements of Operations as a component of other income (expense). Total transaction gains and losses, which are related primarily to advances to foreign subsidiaries and advances between foreign subsidiaries amounted to a gain of $0.7 million in 2017, and losses of $0.9 million and $3.2 million in 2016 and 2015, respectively.
Use of Estimates	Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates include the estimated total costs at completion of our long-term contracts, estimated loss contingencies, estimated self-insurance liabilities, estimated discounted future cash flows of our reporting units used for goodwill impairment testing and estimated future cash flows for our long-lived asset impairment testing, estimated discounted cash flows used for valuation of intangible assets and contingent consideration in business combinations, and estimated rates of return and discount rates related to our defined benefit pension plans. Actual results could differ from our estimates.
Cash Equivalents	Cash Equivalents : We consider highly liquid investments with maturity of three months or less when purchased to be cash equivalents.
Restricted Cash	Restricted Cash: Restricted cash represents cash that is restricted as to usage for legal or contractual reasons. Restricted cash is classified either as current or non-current, depending upon the date of the lapse of the respective restriction.
Concentration of Credit Risk	Concentration of Credit Risk: We have established guidelines pursuant to which our cash and cash equivalents are diversified among various money market instruments and investment funds. These guidelines emphasize the preservation of capital by requiring minimum credit ratings assigned by established credit organizations. We achieve diversification by specifying maximum investments in each instrument type and issuer. The majority of these investments are not on deposit in federally insured accounts.
Marketable Securities	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 Consolidated Balance Sheets and the change in fair value is recorded, net of taxes, as a component of other comprehensive income. 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 Consolidated Balance Sheets based upon the nature of the securities and availability for use in current operations.
Accounts Receivable	Accounts Receivable: Receivables consist primarily of amounts due from U.S. and foreign governments for defense products and services and local government agencies for transportation systems. Due to the nature of our customers, we generally do not require collateral. We have limited exposure to credit risk as we have historically collected substantially all of our receivables from government agencies. We generally require no allowance for doubtful accounts for these customers.
Inventories	Inventories: We state our inventories at the lower of cost or market. We determine cost using the first-in, first-out (FIFO) method, which approximates current replacement cost. We value our work in process at the actual production and engineering costs incurred to date, including applicable overhead. For contracts with the U.S. government our work in process also includes general and administrative costs. Any inventoried costs in excess of estimated realizable value are immediately charged to cost of sales. We include qualifying contract costs allocable to units-of-delivery contracts as inventory. We receive performance-based payments and progress payments associated with certain of these contracts based on the billing terms in the underlying contracts. 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 use the units-of-delivery method to recognize revenue. 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 a liability on the balance sheet.
Long-term capitalized contract costs	Long-term capitalized contract costs: Long-term capitalized contract costs include costs incurred on contracts to develop and manufacture transportation systems for customers for which revenue recognition does not begin until the customers begin operating the systems. Once operation of the systems commence, the capitalized costs are recognized in cost of sales based upon the ratio of revenue recorded during a period compared to the revenue expected to be recognized over the term of the contracts.
Property, Plant and Equipment	Property, Plant and Equipment: We carry property, plant and equipment at cost. We provide depreciation in amounts sufficient to amortize the cost of the depreciable assets over their estimated useful lives. Generally, we use straight-line methods for depreciable real property over estimated useful lives or the term of the underlying lease, if shorter than the estimated useful lives, for leasehold improvements. We use accelerated methods (declining balance and sum-of-the-years-digits) for machinery and equipment over their estimated useful lives. Certain costs incurred in the development of internal-use software and software applications, including external direct costs of materials and services and applicable compensation costs of employees devoted to specific software development, are capitalized as computer software costs. Costs incurred outside of the application development stage are expensed as incurred. The amounts capitalized are included in property, plant and equipment 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.
Goodwill and Purchased Intangibles	Goodwill and Purchased Intangibles: We evaluate goodwill for potential impairment annually as of July 1, or when circumstances indicate that the carrying value may not be recoverable. The test is performed by comparing the fair value of each of our reporting units, which are consistent with our operating segments, to its carrying value, including recorded goodwill. If the carrying value exceeds the fair value, we measure impairment by comparing the implied fair value of goodwill to its carrying value, and any impairment determined would be recorded in the current period. Our purchased intangible assets are subject to amortization. In cases that we determine that a pattern in which the intangible asset will be consumed can be reliably determined we use an amortization method that best matches that expected pattern. If we believe that such a pattern cannot be reliably determined, we use a straight-line method of amortization.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets: We generally evaluate the carrying values of long-lived assets other than goodwill for impairment only if events or changes in facts and circumstances indicate that carrying values may not be recoverable. If we determined there was any impairment, we would measure it by comparing the fair value of the related asset to its carrying value and record the difference in the current period. Fair value is generally determined by identifying estimated discounted cash flows to be generated by those assets. We have not recorded any impairment of long-lived assets for the years ended September 30, 2017, 2016 and 2015.
Recognizing assets acquired and liabilities assumed in a business combination	Recognizing assets acquired and liabilities assumed in a business combination: Acquired assets and assumed liabilities are recognized in a business combination on the basis of their fair values at the date of acquisition. We assess fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, using a variety of methods including income approaches such as present value techniques or cost approaches such as the estimation of current selling prices and replacement values. Fair value of the assets acquired and liabilities assumed, including intangible assets and contingent payments, are measured based on the assumptions and estimations with regards to the variable factors such as the amount and timing of future cash flows for the asset or liability being measured, appropriate risk-adjusted discount rates, nonperformance risk, or other factors that market participants would consider. Upon acquisition, we determine the estimated economic lives of the acquired intangible assets for amortization purposes, which are based on the underlying expected cash flows of such assets. Adjustments to inventory are based on the fair market value of inventory and amortized into income based on the period in which the underlying inventory is sold. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Actual results may vary from projected results and assumptions used in the fair value assessments.
Customer Advances	Customer Advances : We receive advances, performance-based payments and progress payments from customers that may exceed revenues recognized to date on certain contracts, including contracts with agencies of the U.S. government. We classify such advances, other than those reflected as a reduction of receivables or inventories, as current liabilities.
Contingencies	Contingencies : We establish reserves for loss contingencies when, in the opinion of management, the likelihood of liability is probable and the extent of such liability is reasonably estimable. Estimates, by their nature, are based on judgment and currently available information and involve a variety of factors, including the type and nature of the litigation, claim or proceeding, the progress of the matter, the advice of legal counsel, our defenses and our experience in similar cases or proceedings as well as our assessment of matters, including settlements, involving other defendants in similar or related cases or proceedings. We may increase or decrease our legal reserves in the future, on a matter-by-matter basis, to account for developments in such matters.
Derivative Financial Instruments	Derivative Financial Instruments: 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 cost of sales. 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 income (loss) until the underlying hedged item is recognized in cost of sales, or the forecasted transaction is no longer probable of occurring. If a derivative does not qualify as a highly effective hedge, a change in fair value is immediately recognized in earnings. We formally document 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.
Defined Benefit Pension Plans	Defined Benefit Pension Plans: Some of our employees are covered by defined benefit pension plans. The net periodic cost of our plans is determined using several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of return on plan assets. We recognize on a plan-by-plan basis the funded status of our defined benefit pension plans as either an asset or liability on our balance sheets, with a corresponding adjustment to accumulated other comprehensive income (loss), net of tax, in shareholders’ equity. The funded status is measured as the difference between the fair value of the plan assets and the benefit obligation of the plan.
Comprehensive Income (Loss)	Comprehensive Income (Loss): Other comprehensive income (loss), which is comprised of unrealized gains and losses on foreign currency translation adjustments, unrealized gains and losses on cash flow hedges, net of tax, unrealized gains and losses on available-for-sale securities, net of tax and pension liability adjustments, net of tax is included in our Consolidated Statement of Comprehensive Income (Loss) as other comprehensive income (loss).
Revenue Recognition	Revenue Recognition: We generate revenue from the sale of products such as mass transit fare collection systems, air and ground combat training systems, and products with C4ISR capabilities. We also generate revenue from services we provide such as specialized military training exercises, including live, virtual and constructive training exercises and support, and we operate and maintain fare systems for mass transit customers. We classify sales as products or services in our Consolidated Statements of Operations based on the attributes of the underlying contracts. We recognize sales and profits under our long-term fixed-price contracts which require a significant amount of development effort in relation to total contract value using the cost-to-cost percentage-of-completion method of accounting. We record sales and profits based on the ratio of contract costs incurred to estimated total contract costs at completion. Contract costs include material, labor and subcontracting costs, as well as an allocation of indirect costs. For contracts with the U.S. federal government, general and administrative costs are included in contract costs; however, for purposes of revenue measurement, general and administrative costs are not considered contract costs for any other customers. Costs are recognized as incurred for contracts accounted for under the cost-to-cost percentage-of-completion method. For certain other long-term, fixed price production contracts not requiring substantial development effort we use the units-of-delivery percentage-of-completion method as the basis to measure progress toward completing the contract and recognizing sales. The units-of delivery measure recognizes revenues as deliveries are made to the customer generally using unit sales values in accordance with the contract terms. Costs of sales are recorded as deliveries are made. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on deliveries. For long-term fixed price contracts, we only include amounts representing contract change orders, claims or other items in the contract value when they can be reliably estimated and we consider realization probable. Changes in estimates of sales, costs and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. A significant change in one or more of these estimates could have a material effect on our consolidated financial position or results of operations. We record sales under cost-reimbursement-type contracts as we incur the costs. The Federal Acquisition Regulations provide guidance on the types of costs that we will be reimbursed in establishing the contract price. We consider incentives or penalties and awards applicable to performance on contracts in estimating sales and profits, and record them when there is sufficient information to assess anticipated contract performance. We do not recognize incentive provisions that increase or decrease earnings based solely on a single significant event until the event occurs. We occasionally enter into contracts that include multiple deliverables such as the construction or upgrade of a system and subsequent services to operate and maintain the delivered system. For such contracts, arrangement consideration is allocated at the inception of the arrangement to all deliverables using the relative-selling-price method. Under the relative-selling-price method, the selling price for each deliverable is determined using vendor specific objective evidence (VSOE) of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists for a deliverable, which is typically the case for our contracts, the guidance requires us to determine the best estimate of the selling price, which is the price at which we would sell the deliverable if it were sold on a standalone basis. In estimating the selling price of the deliverable on a standalone basis, we consider our overall pricing models and objectives, including the factors we contemplate in negotiating our contracts with our customers. The pricing models and objectives that we use are generally based upon a cost-plus margin approach, with the estimated margin based in part on qualitative factors such as perceived customer pricing sensitivity and competitive pressures. Once the contract value is allocated to the separate deliverables under a multiple-element arrangement, revenue recognition guidance relevant to each contractual element is followed. For example, for the long-term construction portion of a contract we generally use the percentage-of completion method and for the services portion we generally recognize the service revenues on a straight-line basis over the contractual service period or based on measurable units of work performed or incentives earned. For certain of our multiple-element arrangements, the contract specifies that we will not be paid upon the delivery of certain units of accounting, but rather we will be paid when subsequent performance obligations are satisfied. Generally, in these cases the allocation of arrangement consideration to the up-front deliverables is limited, in some cases to zero, and revenue is reduced, in some cases to zero for the delivery of up-front units of accounting. In such situations, if the costs associated with the delivered item exceed the amount of allocable arrangement consideration, we defer the direct and incremental costs associated with the delivered item that are in excess of the allocated arrangement consideration as capitalized contract costs. We assess recoverability of these costs by comparing the recorded asset to the deferred revenue in excess of the transaction price allocated to the remaining deliverables in the arrangement. Capitalized contract costs are subsequently recognized in income in a manner that is consistent with the revenue recognition pattern for the arrangement as a whole. If no pattern of revenue recognition can be reasonably predicted for the arrangement, the capitalized costs are amortized on a straight-line basis. Revenue under our service contracts with the U.S. government is recorded under the cost-to cost percentage-of-completion method. Award fees and incentives related to performance under these service contracts are accrued during the performance of the contract based on our historical experience and estimates of success with such awards. Revenue under contracts for services other than those with the U.S. government and those associated with design, development, or production activities is recognized either as services are performed or when a contractually required event has occurred, depending on the contract. For non-U.S. government service contracts that contain measurable units of work performed we recognize sales when the units of work are completed. Certain of our transportation systems service contracts contain service level or system usage incentives, for which we recognize revenues when the incentive award is fixed or determinable. These contract incentives are generally based upon monthly service levels or monthly performance and become fixed or determinable on a monthly basis. However, one of our legacy transportation systems service contracts that terminated in late fiscal 2015 contained annual system usage incentive which were based upon system usage compared to annual baseline amounts. For this contract the annual system usage incentives were not considered fixed or determinable until the end of the contract year for which the incentives are measured, which fell within the second quarter of our fiscal year. The follow-on contract to this transportation systems service contract did not include an annual system usage incentive. Revenue under non-U.S. government service contracts that do not contain measurable units of work performed, which is generally the case for our service contracts, is recognized on a straight-line basis over the contractual service period, unless evidence suggests that the revenue is earned, or obligations fulfilled, in a different manner. Costs incurred under these services contracts are expensed as incurred. We make provisions in the current period to fully recognize any anticipated losses on contracts, other than non-U.S. government service contracts. If we receive cash on a contract prior to revenue recognition, and for contracts that are accounted for on a units-of-delivery method, that is in excess of inventoried costs, we classify it as a customer advance on the balance sheet. In addition, we are subject to audit of incurred costs related to many of our U.S. government contracts. These audits could produce different results than we have estimated for revenue recognized on our cost-based contracts with the U.S. government; however, our experience has been that our costs are acceptable to the government.
Research and Development (R&D)	Research and Development (R&D): We record the cost of company sponsored R&D activities as the expenses are incurred. The cost of engineering and product development activities incurred in connection with the performance of work on our contracts is included in cost of sales as they are directly related to contract performance.
Stock-Based Compensation	Stock-Based Compensation: Restricted stock units (RSUs) are granted to eligible employees and directors and represent rights to receive shares of common stock at a future date if vesting occurs. RSUs granted to date have either time-based vesting or performance-based vesting. Compensation expense for all RSUs is measured at fair value at the grant date and recognized based upon the number of RSUs that ultimately vest. We determine the fair value of RSUs based on the closing market price of our common stock on the grant date. The grant date of the performance-based RSUs takes place when the grant is authorized and the specific achievement goals are communicated. Compensation expense for time-based vesting awards is recorded on a straight-line basis over the requisite service period, adjusted by estimated forfeiture rates. Vesting of performance-based RSUs is tied to achievement of specific company goals over the measurement period, which is generally a three-year period from the date of the grant. For purposes of measuring compensation expense for performance-based RSUs, at each reporting date we estimate the number of shares for which vesting is deemed probable based on management’s expectations regarding achievement of the relevant performance criteria, adjusted by estimated forfeiture rates. Compensation expense for the number of shares ultimately expected to vest is recognized on a straight-line basis over the requisite service period for the performance-based RSUs. The recognition of compensation expense associated with performance-based RSUs requires judgment in assessing the probability of meeting the performance goals. For performance-based RSUs, there may be significant expense recognition or reversal of recognized expense in periods in which there are changes in the assessed probability of meeting performance-based vesting criteria.
Income Taxes	Income Taxes : Our provision for income taxes includes federal, state, local and foreign income taxes. We provide deferred income taxes on temporary differences between assets and liabilities for financial reporting and tax purposes as measured by enacted tax rates we expect to apply when the temporary differences are settled or realized. Tax law and rate changes are reflected in income in the period such changes are enacted. We establish valuation allowances for deferred tax assets when the amount of future taxable income we expect is not likely to support the realization of the temporary differences. Beginning in the second quarter of fiscal year 2017 we began providing for U.S. deferred taxes on unremitted foreign earnings. We include interest and penalties related to income taxes, including unrecognized tax benefits, within the income tax provision. ASC 740-20 requires total income tax expense or benefit to be allocated among continuing operations, discontinued operations, extraordinary items, other comprehensive income and items charged directly to shareholders’ equity.
Net Income (Loss) Per Share	Net Income (Loss) Per Share: Basic net income (loss) per share (EPS) is computed by dividing the net income (loss) from continuing operations for the period by the weighted average number of common shares outstanding during the period, including vested RSUs. In periods with a net income from continuing operations, 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 RSUs. Dilutive RSUs 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 from continuing operations, common equivalent shares are not included in the computation of diluted EPS, because to do so would be anti-dilutive. The weighted-average number of shares outstanding used to compute net income (loss) per common share were as follows (in thousands): Year Ended September 30, 2017 2016 2015 Weighted average shares - basic 27,106 26,976 26,872 Effect of dilutive securities — — 66 Weighted average shares - diluted 27,106 26,976 26,938 Number of anti-dilutive securities 967 825 —
Recent Accounting Pronouncements	Recent Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 outlines a comprehensive revenue recognition model and supersedes most current revenue recognition guidance. The new guidance 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. Adoption of ASU 2014-09 will be required for us beginning in the first quarter of fiscal 2019 and we have determined that we will not adopt ASU 2014-09 earlier than required. 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. We have assigned a task force within management to lead our implementation efforts and we have engaged outside advisors to assist. We are currently in the process of analyzing the impact of the adoption of the new standard on our various revenue streams. Under ASU 2014-09, revenue is recognized as control transfers to the customer. As such, revenue for our fixed-price development and production contracts will generally be recognized over time as costs are incurred, which is consistent with the revenue recognition model we currently use for the majority of these contracts. For certain of our fixed-price production contracts where we currently recognize revenue as units are delivered, in most cases the accounting for those contracts will change under ASU 2014-09 such that we will recognize revenue as costs are incurred. This change will generally result in an acceleration of revenue as compared with our current revenue recognition method for those contracts. Approximately 29% of our net sales used the units-of-delivery method to recognize revenue in fiscal 2017. We continue to analyze the impact of the new standard on our remaining revenue streams and, as the standard will supersede substantially all existing revenue guidance affecting us under GAAP, we expect that it will impact revenue and cost recognition on a significant number of our contracts across our business segments, in addition to our business processes and our information technology systems. Our process of evaluating the effect of the new standard will continue through fiscal year 2018. In May 2015, the FASB issued Accounting Standards Update ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). ASU 2015-07 removes the requirement to categorize investments for which the fair values are measured using the net asset value per share practical expedient within the fair value hierarchy. It also limits certain disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. This guidance was adopted retrospectively in fiscal year 2017. The adoption did not have a material impact on our consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10) which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 will be effective for us beginning October 1, 2018 and, with the exception of a specific portion of the amendment, early adoption is not permitted. We are currently evaluating the impact this guidance will have on our financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases . Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (a) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (b) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The ASU will be effective for us beginning October 1, 2019 with early adoption permitted. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements as well as whether to adopt the new guidance early. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation . The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this standard are effective for our annual year and first fiscal quarter beginning on October 1, 2017. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments , which provides clarifying guidance on how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance will be effective for us in our fiscal year beginning October 1, 2018, and early adoption is permitted. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements as well as whether to adopt the new guidance early. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs . The guidance will be effective for us in our fiscal year beginning October 1, 2018, and early adoption is permitted. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements as well as whether to adopt the new guidance early. In November 2016, the FASB issued ASU 2016-18, Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The guidance will be effective for us in our fiscal year beginning October 1, 2018, and early adoption is permitted. The adoption of this standard is anticipated to affect our presentation of restricted cash within our statement of cash flows. We are currently evaluating whether to adopt the new guidance early. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business . This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance will be effective for us in our fiscal year beginning October 1, 2018 and early adoption is allowed for certain transactions. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. This standard removes the second step of the goodwill impairment test, where a determination of the fair value of individual assets and liabilities of a reporting unit was needed to measure the goodwill impairment. Under this updated standard, goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance will be effective for us in our fiscal year beginning October 1, 2020 with early adoption permitted. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements as well as whether to adopt the new guidance early. In March 2017, the FASB issued ASU 2017-07 , Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The update requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service cost/credit and actuarial gain/loss, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. Employers will have to disclose the line(s) used to present the other components of net periodic benefit cost, if the components are not presented separately in the income statement . ASU 2017-07 will be effective for us beginning October 1, 2018, and early adoption is permitted. We are currently evaluating the impact of the application of this accounting standard update on our consolidated financial statements as well as whether to adopt the new guidance early.

Summary of Significant Accoun27

Summary of Significant Accounting Polices (Tables)	12 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Polices
Schedule of computation of basic and diluted EPS	The weighted-average number of shares outstanding used to compute net income (loss) per common share were as follows (in thousands): Year Ended September 30, 2017 2016 2015 Weighted average shares - basic 27,106 26,976 26,872 Effect of dilutive securities — — 66 Weighted average shares - diluted 27,106 26,976 26,938 Number of anti-dilutive securities 967 825 —

Acquisitions and Divestitures (

Acquisitions and Divestitures (Tables)	12 Months Ended
	Sep. 30, 2017
Acquisitions
Schedule of income (loss) and carrying amounts of assets and liabilities from discontinued operations	Income from discontinued operations, net of taxes, is comprised of the following (in thousands): Years Ended September 30, 2017 2016 2015 Net sales $ 378,152 $ 391,064 $ 402,146 Costs and expenses: Cost of sales 342,819 350,429 362,147 Selling, general and administrative expenses 17,487 16,430 16,766 Amortization of purchased intangibles 2,752 4,764 7,690 Restructuring costs 208 574 559 Other income (46) (93) (131) Earnings from discontinued operations before income taxes 14,932 18,960 15,115 Income tax provision 401 5,145 2,371 Net income from discontinued operations $ 14,531 $ 13,815 $ 12,744 The carrying amounts of CGD Services segment assets and liabilities that were classified as assets and liabilities of discontinued operations are as follows (in thousands): September 30, September 30, 2017 2016 Accounts receivable, net $ 74,710 $ 80,138 Other current assets 1,190 1,667 Property and equipment, net 466 2,391 Goodwill 94,350 94,350 Purchased intangibles, net 8,637 11,389 Other noncurrent assets (5,179) (4,425) Total assets 174,174 185,510 Accounts payable and other liabilities 36,862 32,771 Net assets $ 137,312 $ 152,739
Schedule of estimated amortization expense related to acquisition	The table below shows our expected amortization of purchased intangibles as of September 30, 2017, for each of the next five years and thereafter (in thousands): Cubic Global Cubic Transportation Defense Mission Systems Systems Solutions Total 2018 $ 4,944 $ 805 $ 20,203 $ 25,952 2019 2,886 530 16,761 20,177 2020 947 315 13,214 14,476 2021 698 261 9,814 10,773 2022 598 261 6,651 7,510 Thereafter 297 893 9,780 10,970 $ 10,370 $ 3,065 $ 76,423 $ 89,858
Schedule of unaudited pro forma information	The following unaudited pro forma information presents our consolidated results of operations as if Deltenna, Vocality, GATR, TeraLogics, H4 Global and DTECH had been included in our consolidated results since October 1, 2015 (in millions): Year Ended September 30, 2017 2016 Net sales $ 1,109.4 $ 1,097.5 Net loss from continuing operations $ (26.1) $ (13.7)
Deltenna
Acquisitions
Schedule of Business Combination Operating Results	Deltenna’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 0.1 $ — $ — Operating loss (0.2) — — Net loss after taxes (0.2) — —
Schedule of Business Combination components of operating results	Deltenna’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ — $ — $ — Acquisition-related expenses 0.2 — —
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 $ 1.0 Technology 1.1 Other net assets acquired (liabilities assumed) (0.3) Net identifiable assets acquired 1.8 Goodwill 3.5 Net assets acquired $ 5.3
Schedule of estimated amortization expense related to acquisition	The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of Deltenna for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 0.3 2019 0.3 2020 0.3 2021 0.3 2022 0.3 Thereafter 0.6
Vocality
Acquisitions
Schedule of Business Combination Operating Results	Vocality’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 1.5 $ — $ — Operating loss (2.9) — — Net loss after taxes (2.6) — —
Schedule of Business Combination components of operating results	Vocality’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 0.6 $ — $ — Acquisition-related expenses 1.6 — —
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 $ 2.1 Technology 2.4 Trade name 0.4 Inventory 1.7 Accounts payable and accrued expenses (0.4) Other net assets acquired (liabilities assumed) (0.5) Net identifiable assets acquired 5.7 Goodwill 3.9 Net assets acquired $ 9.6
Schedule of estimated amortization expense related to acquisition	The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of Vocality for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 0.8 2019 0.7 2020 0.6 2021 0.6 2022 0.5 Thereafter 1.3
GATR
Acquisitions
Schedule of Business Combination Operating Results	GATR’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 84.3 $ 43.1 $ — Operating income (loss) 1.9 (26.4) — Net income (loss) after taxes 1.4 (23.0) —
Schedule of Business Combination components of operating results	GATR’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 12.7 $ 9.7 $ — Gains (losses) for changes in fair value of contingent consideration 3.2 (0.7) — Acquisition-related expenses 0.6 22.0 —
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 $ 51.7 Backlog 3.4 Technology 10.7 Non-compete agreements 1.2 Trade name 4.7 Accounts receivable 10.6 Inventory 3.4 Income tax receivable 5.1 Accounts payable and accrued expenses (2.4) Deferred tax liabilities (23.8) Net identifiable assets acquired 64.6 Goodwill 155.9 Net assets acquired $ 220.5
Schedule of estimated amortization expense related to acquisition	The estimated amortization expense related to the intangible assets recorded in connection with our acquisition of GATR for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 11.1 2019 9.8 2020 8.3 2021 6.9 2022 5.6 Thereafter 7.6
TeraLogics
Acquisitions
Schedule of Business Combination Operating Results	TeraLogic’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 19.7 $ 14.2 $ — Operating loss (1.8) (2.9) — Net loss after taxes (1.2) (1.6) —
Schedule of Business Combination components of operating results	TeraLogic’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 3.5 $ 3.0 $ — Losses for changes in fair value of contingent consideration (1.3) (1.5) — Acquisition-related expenses 0.2 2.3 —
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 $ 6.7 Backlog 5.6 Software 2.5 Non-compete agreements 0.1 Accounts receivable 1.4 Accounts payable and accrued expenses (0.5) Other net assets acquired (liabilities assumed) (0.1) Net identifiable assets acquired 15.7 Goodwill 18.2 Net assets acquired $ 33.9
Schedule of estimated amortization expense related to acquisition	The estimated amortization expense amounts related to the intangible assets recorded in connection with our acquisition of TeraLogics for fiscal years 2018 through 2022 and thereafter is as follows (in millions): Year Ended September 30, 2018 $ 2.8 2019 2.1 2020 1.4 2021 0.8 2022 0.5 Thereafter 0.9
H4 Global
Acquisitions
Schedule of Business Combination Operating Results	H4 Global’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 3.3 $ 2.2 $ — Operating loss (1.1) (0.6) — Net loss after taxes (0.9) (0.4) —
Schedule of Business Combination components of operating results	H4 Global’s operating results above included the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 0.1 $ 0.1 $ — Gains for changes in fair value of contingent consideration — 0.4 — Acquisition-related expenses — 0.1 —
DTECH
Acquisitions
Schedule of Business Combination Operating Results	DTECH’s sales and results of operations included in our operating results for the years ended September 30, 2017, 2016 and 2015 were as follows (in millions): September 30, 2017 2016 2015 Sales $ 39.0 $ 34.5 $ 45.8 Operating income (loss) 2.4 (3.0) 0.9 Net income (loss) after taxes 1.3 (2.1) 0.5
Schedule of Business Combination components of operating results	DTECH’s operating results above included $23.0 million and $14.2 million in intercompany sales for the years ended September 30, 2017 and 2016, respectively, as well as the following amounts for the years ended September 30, 2017, 2016 and 2015 (in millions): September 30, 2017 2016 2015 Amortization $ 6.8 $ 8.0 $ 9.2 Gains (losses) for changes in fair value of contingent consideration 2.0 0.5 (3.6) Acquisition-related expenses 0.3 0.9 2.1
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 $ 35.1 Non-compete agreements 0.7 Backlog 2.1 Cash 0.9 Accounts receivable 5.4 Inventory 4.2 Warranty obligation (0.4) Tax liabilities (3.3) Accounts payable and accrued expenses (3.4) Other net assets acquired 0.2 Net identifiable assets acquired 41.5 Goodwill 57.9 Net assets acquired $ 99.4
Schedule of estimated amortization expense related to acquisition	The estimated amortization expense amounts related to the intangible assets recorded in connection with our acquisition of DTECH for fiscal years 2018 through 2021 is as follows (in millions): Year Ended September 30, 2018 5.5 2019 4.1 2020 2.8 2021 1.5

Fair Value of Financial Instr29

Fair Value of Financial Instruments (Tables)	12 Months Ended
	Sep. 30, 2017
Fair Value of Financial Instruments
Summary of change in fair value of contingent consideration liability	As of September 30, 2017, the following table summarizes the change in fair value of our Level 3 contingent consideration liability (in thousands): DTECH H4 TeraLogics (Contract Extensions) TeraLogics (Revenue Targets) GATR Deltenna Total Balance as of October 1, 2015 $ 7,507 $ — $ — $ — $ — $ — $ 7,507 Initial measurement recognized at acquisition — 1,602 2,000 3,100 2,500 — 9,202 Cash paid to seller (5,000) — (1,000) — — — (6,000) Adjustment to the provisional acquisition date valuation — (616) (100) — — — (716) Total remeasurement (gain) loss recognized in earnings (507) (419) 500 1,000 700 — 1,274 Balance as of September 30, 2016 $ 2,000 $ 567 $ 1,400 $ 4,100 $ 3,200 $ — $ 11,267 Initial measurement recognized at acquisition — — — — — 1,328 1,328 Cash paid to seller — — (1,000) (2,500) — — (3,500) Adjustment to the provisional acquisition date valuation — — — — — — — Total remeasurement (gain) loss recognized in earnings (2,000) 24 400 850 (3,200) 48 (3,878) Balance as of September 30, 2017 $ — $ 591 $ 800 $ 2,450 $ — $ 1,376 $ 5,217
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): September 30, 2017 September 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash equivalents $ 8,501 $ — $ — $ 8,501 $ 57,455 $ — $ — $ 57,455 Marketable securities — — — — — 12,996 — 12,996 Current derivative assets — 2,591 — 2,591 — 14,770 — 14,770 Noncurrent derivative assets — 1,128 — 1,128 — 1,201 — 1,201 Total assets measured at fair value $ 8,501 $ 3,719 $ — $ 12,220 $ 57,455 $ 28,967 $ — $ 86,422 Liabilities Current derivative liabilities — 3,456 — 3,456 — 13,752 — 13,752 Noncurrent derivative liabilities — 1,128 — 1,128 — 1,334 — 1,334 Contingent consideration to seller of Deltenna — — 1,376 1,376 — — — — Contingent consideration to seller of GATR — — — — — — 3,200 3,200 Contingent consideration to seller of TeraLogics - contract extensions — — 800 800 — — 1,400 1,400 Contingent consideration to seller of TeraLogics - revenue targets — — 2,450 2,450 — — 4,100 4,100 Contingent consideration to seller of H4 Global — — 591 591 — — 567 567 Contingent consideration to seller of DTECH — — — — — — 2,000 2,000 Total liabilities measured at fair value $ — $ 4,584 $ 5,217 $ 9,801 $ — $ 15,086 $ 11,267 $ 26,353
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): September 30, September 30, 2017 2016 Fair value $ 202.1 $ 210.0 Carrying value $ 200.0 $ 201.0

Accounts Receivable (Tables)

Accounts Receivable (Tables)	12 Months Ended
	Sep. 30, 2017
Accounts Receivable
Schedule of components of accounts receivable	The components of accounts receivable under long-term contracts are as follows (in thousands): September 30, 2017 2016 U.S. Government Contracts: Amounts billed $ 53,450 $ 34,785 Recoverable costs and accrued profits on progress completed--not billed 36,341 33,729 89,791 68,514 Commercial Customers: Amounts billed 131,532 95,173 Recoverable costs and accrued profits on progress completed--not billed 150,610 160,008 282,142 255,181 371,933 323,695 Less unbilled amounts not currently due--commercial customers (17,457) (20,926) $ 354,476 $ 302,769

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Sep. 30, 2017
Inventories
Components of inventories	Significant components of inventories are as follows (in thousands): September 30, September 30, 2017 2016 Finished products $ 4,369 $ 10,018 Work in process and inventoried costs under long-term contracts 84,131 62,570 Materials and purchased parts 10,163 12,102 Customer advances (10,948) (18,328) Net inventories $ 87,715 $ 66,362

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	12 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment
Components of property, plant and equipment	Significant components of property, plant and equipment are as follows (in thousands): September 30, 2017 2016 Land and land improvements $ 16,139 $ 15,854 Buildings and improvements 52,625 49,856 Machinery and other equipment 73,235 68,001 Software 62,297 51,191 Leasehold improvements 13,298 9,432 Construction and internal-use software development in progress 23,156 8,150 Accumulated depreciation and amortization (127,530) (108,559) $ 113,220 $ 93,925

Goodwill and Purchased Intang33

Goodwill and Purchased Intangible Assets (Tables)	12 Months Ended
	Sep. 30, 2017
Goodwill and Purchased Intangible Assets
Schedule of changes in the carrying amount of goodwill	The changes in the carrying amount of goodwill for the two years ended September 30, 2017 are as follows (in thousands): Cubic Global Transportation Defense Systems Systems Total Net balances at October 1, 2015 $ 55,974 $ 87,575 $ 143,549 Acquisitions (see Note 2) — 175,150 175,150 Foreign currency exchange rate changes (6,344) 241 (6,103) Net balances at September 30, 2016 49,630 262,966 312,596 Acquisitions — 5,885 5,885 Foreign currency exchange rate changes 1,240 1,841 3,081 Net balances at September 30, 2017 $ 50,870 $ 270,692 $ 321,562
Schedule of entity's purchased intangible assets	The table below summarizes our purchased intangible assets (in thousands): September 30, 2017 September 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Contract and program intangibles $ 151,602 $ (90,988) $ 60,614 $ 146,898 $ (65,257) $ 81,641 Other purchased intangibles 42,813 (13,569) 29,244 38,695 (8,322) 30,373 Total $ 194,415 $ (104,557) $ 89,858 $ 185,593 $ (73,579) $ 112,014
Schedule of expected amortization of purchased intangibles for each of the next five years	The table below shows our expected amortization of purchased intangibles as of September 30, 2017, for each of the next five years and thereafter (in thousands): Cubic Global Cubic Transportation Defense Mission Systems Systems Solutions Total 2018 $ 4,944 $ 805 $ 20,203 $ 25,952 2019 2,886 530 16,761 20,177 2020 947 315 13,214 14,476 2021 698 261 9,814 10,773 2022 598 261 6,651 7,510 Thereafter 297 893 9,780 10,970 $ 10,370 $ 3,065 $ 76,423 $ 89,858

Financing Arrangements (Tables)

Financing Arrangements (Tables)	12 Months Ended
	Sep. 30, 2017
Financing Arrangements
Schedule of long-term debt	Long-term debt consists of the following (in thousands): September 30, 2017 2016 Series A senior unsecured notes payable to a group of insurance companies, interest fixed at 3.35% $ 50,000 $ 50,000 Series B senior unsecured notes payable to a group of insurance companies, interest fixed at 3.35% 50,000 50,000 Series C senior unsecured notes payable to a group of insurance companies, interest fixed at 3.70% 25,000 25,000 Series D senior unsecured notes payable to a group of insurance companies, interest fixed at 3.93% 75,000 75,000 Mortgage note from a U.K. financial institution, with quarterly installments of principal and interest at 6.48% — 1,012 200,000 201,012 Less unamortized debt issuance costs (239) (271) Less current portion — (450) $ 199,761 $ 200,291

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Sep. 30, 2017
Commitments
Summary of future minimum payments, net of minimum sublease income, under noncancelable operating leases	Future minimum payments, net of minimum sublease income, under non-cancelable operating leases with initial terms of one year or more consist of the following for the next five years and thereafter, as of September 30, 2017 (in thousands): 2018 $ 10,115 2019 8,759 2020 7,734 2021 7,177 2022 4,657 Thereafter 11,273 $ 49,715

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Sep. 30, 2017
Income Taxes
Components of income (loss) before income taxes	Income (loss) from continuing operations before income taxes includes the following components (in thousands): Years ended September 30, 2017 2016 2015 (in thousands) United States $ (70,566) $ (76,136) $ (33,827) Foreign 59,484 49,699 90,623 Total $ (11,082) $ (26,437) $ 56,796
Significant components of the provision for income taxes	Significant components of the provision (benefit) for income taxes from continuing operations are as follows: Years ended September 30, 2017 2016 2015 (in thousands) Current: Federal $ (4,070) $ (1,679) $ (4,567) State 878 (618) 617 Foreign 13,869 8,249 20,266 Total current 10,677 5,952 16,316 Deferred: Federal 2,257 (16,256) 24,834 State 569 (4,333) 4,857 Foreign 1,155 280 619 Total deferred 3,981 (20,309) 30,310 Provision (benefit) for income taxes $ 14,658 $ (14,357) $ 46,626
Reconciliation of income tax computed at the U.S. federal statutory tax rate to income tax expense	The reconciliation of income tax computed at the U.S. federal statutory tax rate to income tax expense is as follows: Years ended September 30, 2017 2016 2015 (in thousands) Tax expense at U.S. statutory rate $ (3,877) $ (9,252) $ 19,875 State income taxes, net of federal tax effect (923) (1,754) (584) Nondeductible expenses (1) (169) 7,765 1,487 Change in reserve for tax contingencies (4,435) 27 (1,192) Change in deferred tax asset valuation allowance (2) 17,374 (5,382) 40,869 Foreign income taxed at less than statutory rate (3) 9,912 (2,999) (11,924) Research and development credits (4) (3,459) (2,542) (1,897) Other 235 (220) (8) Provision (benefit) for income taxes $ 14,658 $ (14,357) $ 46,626 (1) In 2016, we recorded $6.3 million of tax expense related to nondeductible acquisition-related compensation expenses. (2) In 2017, we recorded $13.1 million of tax expense related to an increase in the valuation allowance related to tax credit carryforwards generated in the current year. In 2016, we recorded a net tax benefit primarily related to a business combination in which we acquired significant U.S. deferred tax liabilities as well as a utilization and subsequent release of the deferred tax valuation allowance in Australia. In 2015, we recorded a full valuation allowance on U.S. net deferred tax assets with a charge to expense of $35.8 million. (3) In 2017, we provided for deferred taxes on all unremitted foreign earnings, as the earnings are no longer considered permanently reinvested resulting in a charge of $9.5 million. (4) In both 2016 and 2015, we recorded tax benefits of $1.0 million and $1.2 million, respectively, related to the reinstatement of the research and development tax credit.
Significant components of deferred tax assets and liabilities	Significant components of our deferred tax assets and liabilities are as follows: September 30, 2017 2016 (in thousands) Deferred tax assets: Accrued employee benefits $ 15,863 $ 12,044 Long-term contracts and inventory valuation reductions 13,974 12,422 Allowances for loss contingencies 4,212 3,786 Deferred compensation 4,830 4,369 Retirement benefits 6,214 12,282 Tax credit carryforwards 31,161 16,512 Net operating losses carryforwards 3,968 12,713 Other 2,509 2,563 Total gross deferred tax assets 82,731 76,691 Valuation allowance (57,106) (42,179) Total deferred tax assets 25,625 34,512 Deferred tax liabilities: Deferred revenue (3,729) (11,192) Unremitted foreign earnings (11,910) (2,347) Property, plant and equipment (3,137) (1,443) Intangible assets (9,713) (16,068) Foreign currency mark-to-market — (191) Other (158) (601) Total deferred tax liabilities (28,647) (31,842) Net deferred tax asset (liability) $ (3,022) $ 2,670
Expiration of tax credit carryforwards	Such credit carryforwards (in thousands) expire as follows: U.S. foreign tax credits $ 15,567 U.S. research and development tax credits 6,303 2035-2037 State research and development tax credits 20,486 Do not expire
Expiration of federal, state and foreign net operating losses	We have federal, state and foreign net operating losses (in thousands) which expire as follows: U.S. net operating loss carryforwards $ — — State net operating loss carryforwards 37,138 2020-2037 Foreign net operating loss carryforwards 10,903 Do not expire
Net changes in the liability for unrecognized tax benefits	During fiscal 2017 and 2016, the aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows: Years ended September 30, 2017 2016 (in thousands) Balance at beginning of year $ 16,932 $ 12,619 Additions (reductions) for tax positions taken in prior years: 399 3,641 Recognition of benefits from expiration of statutes (26) (359) Recognition of benefits from open years effectively settled (5,359) — Additions for tax positions related to the current year 1,302 986 Additions for tax positions related to current year acquisitions — 45 Balance at end of year $ 13,248 $ 16,932

Derivative Instruments and He37

Derivative Instruments and Hedging Activities (Tables)	12 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and 2016 (in thousands): Notional Principal September 30, 2017 September 30, 2016 Instruments designated as accounting hedges: Foreign currency forwards $ 125,486 $ 158,664 Instruments not designated as accounting hedges: Foreign currency forwards $ 35,117 $ 115,070
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 on the consolidated balance sheets as of September 30, 2017 and 2016 (in thousands): Fair Value Balance Sheet Location September 30, 2017 September 30, 2016 Asset derivatives: Foreign currency forwards Other current assets $ 2,591 $ 14,769 Foreign currency forwards Other noncurrent assets 1,128 1,201 $ 3,719 $ 15,970 Liability derivatives: Foreign currency forwards Other current liabilities $ 3,456 $ 13,752 Foreign currency forwards Other noncurrent liabilities 1,128 1,333 Total $ 4,584 $ 15,085
Schedule of gains and losses recognized in other comprehensive loss on derivative financial instruments designated as cash flow hedges	The tables below present gains and losses recognized in other comprehensive income (loss) for the years ended September 30, 2017 and 2016 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): Years ended September 30, 2017 2016 Gains (losses) Gains (losses) Gains (losses) reclassified into reclassified into recognized in earnings - Gains (losses) earnings - Derivative Type OCI Effective Portion recognized in OCI Effective Portion Foreign currency forwards $ (2,200) $ 551 $ (806) $ 1,522

Pension, Profit Sharing and O38

Pension, Profit Sharing and Other Benefit Plans (Tables)	12 Months Ended
	Sep. 30, 2017
PENSION, PROFIT SHARING AND OTHER BENEFIT PLANS
Schedule of projected benefit obligation, ABO and fair value of plan assets for the defined benefit pension plans	The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the defined benefit pension plans were as follows (in thousands): September 30, 2017 2016 Projected benefit obligation $ 235,097 $ 241,117 Accumulated benefit obligation 235,097 241,117 Fair value of plan assets 209,722 194,253
Schedule of changes in the projected benefit obligation and fair value of plan assets and the funded status	The following table sets forth changes in the projected benefit obligation and fair value of plan assets and the funded status for these defined benefit plans (in thousands): September 30, 2017 2016 Change in benefit obligations: Net benefit obligation at the beginning of the year $ 241,117 $ 227,527 Service cost 617 595 Interest cost 7,091 8,972 Actuarial (gain) loss (10,082) 41,583 Gross benefits paid (7,549) (8,365) Settlements — (10,424) Foreign currency exchange rate changes 3,903 (18,771) Net benefit obligation at the end of the year 235,097 241,117 Change in plan assets: Fair value of plan assets at the beginning of the year 194,253 201,502 Actual return on plan assets 14,915 23,775 Employer contributions 5,354 4,271 Gross benefits paid (7,549) (8,365) Settlements — (10,424) PBGC Premium paid (348) (362) Administrative expenses (547) (925) Foreign currency exchange rate changes 3,644 (15,219) Fair value of plan assets at the end of the year 209,722 194,253 Unfunded status of the plans (25,375) (46,864) Unrecognized net actuarial loss 58,572 72,909 Net amount recognized $ 33,197 $ 26,045 Amounts recognized in Accumulated OCI Liability adjustment to OCI $ (58,572) $ (72,909) Deferred tax asset 15,033 19,236 Valuation allowance on deferred tax asset (2,107) (5,153) Accumulated other comprehensive loss $ (45,646) $ (58,826)
Components of net periodic pension cost (benefit)	The components of net periodic pension cost (benefit) were as follows (in thousands): September 30, 2017 2016 2015 Service cost $ 617 $ 595 $ 670 Interest cost 7,091 8,972 9,073 Expected return on plan assets (12,928) (13,182) (13,835) Amortization of actuarial loss 3,700 1,869 705 Settlement loss — 2,671 — Administrative expenses 474 177 163 Net pension cost (benefit) $ (1,046) $ 1,102 $ (3,224)
Schedule of weighted-average assumptions used to determine benefit obligation and net periodic benefit cost	Years ended September 30, 2017 2016 2015 Weighted-average assumptions used to determine benefit obligation at September 30: Discount rate Rate of compensation increase Weighted-average assumptions used to determine net periodic benefit cost for the years ended September 30: Discount rate Expected return on plan assets Rate of compensation increase
Schedule of target ranges for each major category of the plans' assets	The target ranges for each major category of the plans’ assets at September 30, 2017 are as follows: Allocation Asset Category Range Equity securities 20% to 55% Debt securities 25% to 75% Cash 0% to 55% Real estate 0% to 10%
Schedule of fair value of the assets of defined benefit pension plans by asset category and their level within the fair value hierarchy	The fair value of the underlying investments comprised of real estate properties is determined through an appraisal process which uses valuation methodologies including comparisons to similar real estate and discounting of income streams. September 30, 2017 September 30, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Plan assets held at fair value: Cash equivalents $ 2,665 $ — $ — $ 2,665 $ 3,071 $ — $ — $ 3,071 Plan assets held at net asset value practical expedient*: Equity Funds 101,433 83,877 Fixed Income Funds 84,188 72,219 Diversifies Growth Funds 16,646 27,525 Real Estate Funds 4,790 7,561 Total assets held at net asset value practical expedient: $ 207,057 $ 191,182 Total Plan Assets $ 209,722 $ 194,253 * Plan assets measured at fair value using NAV (or its equivalent) as a practical expedient have not been categorized in the fair value hierarchy.
Schedule of expected pension benefit payments, which reflect expected future service	We expect to pay the following pension benefit payments, which reflect expected future service, as appropriate, (in thousands): 2018 $ 8,330 2019 8,753 2020 9,148 2021 9,358 2022 9,543 2022-2026 50,890

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Sep. 30, 2017
Stockholders' Equity
Summary of RSU activity	The following table summarizes our RSU activity: Unvested Restricted Stock Units Weighted-Average Number of Shares Grant-Date Fair Value Unvested at October 1, 2015 759,902 $ 47.24 Granted 471,627 43.72 Vested (130,678) 46.94 Forfeited (211,722) 44.86 Unvested at September 30, 2016 889,129 45.98 Granted 395,913 46.20 Vested (158,243) 46.15 Forfeited (81,612) 48.32 Unvested at September 30, 2017 1,045,187 $ 45.86

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Sep. 30, 2017
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 of $5.0 million, $7.7 million and $7.4 million for the years ended September 30, 2017, 2016 and 2015, respectively, which was comprised of the following (in thousands): 2017 2016 2015 Cost of sales $ 338 $ 513 $ 362 Selling, general and administrative 4,674 7,235 7,045 $ 5,012 $ 7,748 $ 7,407

Business Segment Information (T

Business Segment Information (Tables)	12 Months Ended
	Sep. 30, 2017
Business Segment Information
Schedule of business segment financial data	Business segment financial data is as follows (in millions): Year Ended September 30, 2017 2016 2015 Sales: Cubic Transportation Systems $ 578.6 $ 586.4 $ 566.8 Cubic Global Defense Systems 360.2 374.7 369.6 Cubic Mission Solutions 168.9 109.5 92.5 Total sales $ 1,107.7 $ 1,070.6 $ 1,028.9 Operating income (loss): Cubic Transportation Systems $ 39.8 $ 57.5 $ 75.9 Cubic Global Defense Systems 28.1 19.9 15.3 Cubic Mission Solutions (9.3) (37.0) 3.1 Unallocated corporate expenses (56.0) (52.0) (33.9) Total operating income (loss) $ 2.6 $ (11.6) $ 60.4 Assets: Cubic Transportation Systems $ 335.1 $ 338.2 $ 410.0 Cubic Global Defense Systems 280.1 211.8 195.9 Cubic Mission Solutions 390.5 404.4 145.3 Corporate 156.4 364.8 351.5 Discontinued Operations 174.2 185.5 197.6 Total assets $ 1,336.3 $ 1,504.7 $ 1,300.3 Depreciation and amortization: Cubic Transportation Systems $ 8.8 $ 8.2 $ 10.8 Cubic Global Defense Systems 10.4 7.5 7.8 Cubic Mission Solutions 23.8 21.2 9.3 Corporate 5.0 3.4 1.3 Total depreciation and amortization $ 48.0 $ 40.3 $ 29.2 Capital expenditures: Cubic Transportation Systems $ 6.9 $ 2.2 $ 2.0 Cubic Global Defense Systems 5.9 6.8 0.5 Cubic Mission Solutions 1.7 2.1 0.1 Corporate 22.4 21.0 19.6 Total expenditures for long-lived assets $ 36.9 $ 32.1 $ 22.2
Schedule of sales by geographic area	Years ended September 30, 2017 2016 2015 Geographic Information: Sales (a): United States $ 522.8 $ 471.6 $ 397.8 United Kingdom 219.4 243.0 282.4 Canada 31.5 44.6 17.5 Australia 175.6 154.0 164.6 Middle East 64.8 71.0 67.7 Far East 47.9 40.0 39.3 Other 45.7 46.4 59.6 Total sales $ 1,107.7 $ 1,070.6 $ 1,028.9 (a) Sales are attributed to countries or regions based on the location of customers.
Schedule of long-lived assets by country	Years ended September 30, 2017 2016 2015 Long-lived assets, net: United States $ 100.6 $ 83.9 $ 59.3 United Kingdom 11.7 9.4 8.6 Other foreign countries 7.3 5.3 4.3 Total long-lived assets, net $ 119.6 $ 98.6 $ 72.2
Schedule of restructuring charges (reversals) incurred by business segment	Restructuring charges incurred by business segment were as follows (in millions): Year Ended September 30, 2017 2016 2015 Restructuring costs: Cubic Transportation Systems $ 0.4 $ 1.0 $ 0.6 Cubic Global Defense Systems 0.9 0.3 4.6 Unallocated corporate expenses and other 1.0 — 0.5 Total restructuring costs $ 2.3 $ 1.3 $ 5.7
Summary of the activity relating to the restructuring liability and employee separation expenses	A summary of the activity relating to the restructuring liability and employee separation expenses, which is included within accrued compensation and other current liabilities within our Consolidated Balance Sheet, is as follows (in thousands): Employee Separation Balance as of October 1, 2015 $ 1,893 Accrued costs 1,278 Cash payments (2,618) Balance as of September 30, 2016 553 Accrued costs 2,260 Cash payments (1,838) Balance as of September 30, 2017 $ 975

Summary of Quarterly Results 42

Summary of Quarterly Results of Operations (Unaudited) (Tables)	12 Months Ended
	Sep. 30, 2017
Summary of Quarterly Results of Operations (Unaudited)
Summary of quarterly results of operations	Year Three Months Ended Ended Fiscal 2017 September 30 June 30 March 31 December 31 September 30 (in thousands, except per share data) Net sales $ 349,115 $ 266,184 $ 248,040 $ 244,370 $ 1,107,709 Operating income (loss) 21,207 (6,872) (6,084) (5,623) 2,628 Net income (loss) 13,155 (21,957) 461 (2,868) (11,209) Net income (loss) per share, basic 0.49 (0.81) 0.02 (0.11) (0.41) Net income (loss) per share, diluted 0.49 (0.81) 0.02 (0.11) (0.41) Year Three Months Ended Ended Fiscal 2016 September 30 June 30 March 31 December 31 September 30 (in thousands, except per share data) Net sales $ 308,824 $ 275,062 $ 265,016 $ 221,699 $ 1,070,601 Operating income (loss) 7,060 7,322 (15,618) (10,413) (11,649) Net income (loss) (7,493) 4,498 10,144 (5,414) 1,735 Net income (loss) per share, basic (0.29) 0.17 0.38 (0.20) 0.06 Net income (loss) per share, diluted (0.29) 0.17 0.38 (0.20) 0.06

Summary of Significant Accoun43

Summary of Significant Accounting Polices - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Foreign Currency Transactions and Translations
Total transaction gains (losses) related primarily to advances to and between foreign subsidiaries	$ 0.7	$ (0.9)	$ (3.2)
Accounts Receivable
Allowance for doubtful accounts	0
Impairment of Long-Lived Assets
Impairment of long-lived assets	$ 0	$ 0	$ 0
Sales Revenue | Units-of-Delivery
Recent Accounting Pronouncements
Percentage of net sales	29.00%

Summary of Significant Accoun44

Summary of Significant Accounting Polices - Property, Plant and Equipment (Details) - Software	12 Months Ended
	Sep. 30, 2017
Minimum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	P3Y
Maximum
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	P7Y

Summary of Significant Accoun45

Summary of Significant Accounting Polices - EPS (Details) shares in Thousands, $ in Millions	12 Months Ended
	Sep. 30, 2017USD ($)itemshares	Sep. 30, 2016shares	Sep. 30, 2015contractshares
Revenue Recognition
Number of estimates, a change in which could have material effect on financial position or results of operations | item	1
Allocation of arrangement consideration to the up-front deliverables | $	$ 0
Revenue for the delivery of up-front units of accounting | $	$ 0
Number of transportation systems service contracts, which contain annual system usage incentives | contract			1
Stock-Based Compensation
Vesting period of performance-based RSUs	3 years
Net Income Per Share
Anti-dilutive employee share-based awards	0	0	0
Weighted average shares - basic	27,106	26,976	26,872
Effect of dilutive securities			66
Weighted average shares - diluted	27,106	26,976	26,938
Number of anti-dilutive securities	967	825

Acquisitions and Divestitures -

Acquisitions and Divestitures - CGD Services - Income (loss) from discontinued operations (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	May 31, 2018	Apr. 18, 2018
Costs and expenses:
Income tax provision		$ 400
Net income (loss) from discontinued operations		14,531	$ 13,815	$ 12,744
Cubic Global Defense Services | Discontinued operations, sale complete
Income (loss) from discontinued operations
Net sales		378,152	391,064	402,146
Costs and expenses:
Cost of sales		342,819	350,429	362,147
Selling, general and administrative expenses		17,487	16,430	16,766
Amortization of purchased intangibles		2,752	4,764	7,690
Restructuring costs		208	574	559
Other income		(46)	(93)	(131)
Earnings from discontinued operations before income taxes		14,932	18,960	15,115
Income tax provision		401	5,145	2,371
Net income (loss) from discontinued operations		$ 14,531	$ 13,815	$ 12,744
Cubic Global Defense Services | Subsequent event | Discontinued operations held-for-sale
Divestitures
Consideration from sale						$ 135,000
Receivable for estimated amount due from purchaser						$ 3,000
Cubic Global Defense Services | Subsequent event | Discontinued operations, sale complete
Divestitures
Consideration from sale					$ 133,800
Receivable for estimated amount due from purchaser					3,700
Receivable related to earn-out conditions					$ 0
Loss on sale of CGD Services	$ (6,100)
Estimated disposal costs	$ 4,200

Acquisitions and Divestitures47

Acquisitions and Divestitures - CGD Services - Assets and liabilities of discontinued (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Assets and liabilities
Total assets	$ 174,200	$ 185,500	$ 197,600
Discontinued operations, sale complete | Cubic Global Defense Services
Assets and liabilities
Accounts receivable - net	74,710	80,138
Other current assets	1,190	1,667
Property and equipment, net	466	2,391
Goodwill	94,350	94,350
Purchased intangibles, net	8,637	11,389
Other noncurrent assets	(5,179)	(4,425)
Total assets	174,174	185,510
Accounts payable and other liabilities	36,862	32,771
Net assets	$ 137,312	$ 152,739

Acquisitions and Divestitures48

Acquisitions and Divestitures - Consolidated Business Acquisitions (Details) - USD ($) $ in Thousands	Nov. 30, 2016	Feb. 02, 2016	Dec. 21, 2015	Nov. 04, 2015	Dec. 16, 2014	Jul. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Sales and results of operations
Sales							$ 349,115	$ 266,184	$ 248,040	$ 244,370	$ 308,824	$ 275,062	$ 265,016	$ 221,699	$ 1,107,709	$ 1,070,601	$ 1,028,899
Operating income (loss)							21,207	(6,872)	(6,084)	(5,623)	7,060	7,322	(15,618)	(10,413)	2,628	(11,649)	60,403
Net loss after taxes							13,155	$ (21,957)	$ 461	$ (2,868)	(7,493)	$ 4,498	$ 10,144	$ (5,414)	(11,209)	1,735	22,885
Estimated acquisition-date fair value of consideration
Compensation expense															5,012	7,748	7,407
Compensation expense not expected to be deductible for tax purposes																6,300
Purchase price allocation
Goodwill							321,562				$ 312,596				321,562	312,596	143,549
Estimated amortization expense related to the intangible assets
2,018							25,952								25,952
2,019							20,177								20,177
2,020							14,476								14,476
2,021							10,773								10,773
2,022							7,510								7,510
Thereafter							10,970								10,970
Deltenna
Sales and results of operations
Sales															100
Operating income (loss)															(200)
Net loss after taxes															(200)
Acquisition-related expenses															200
Estimated acquisition-date fair value of consideration
Fair value of consideration transferred						$ 5,300
Cash consideration paid						4,000
Contingent consideration						1,300
Purchase price allocation
Other noncurrent liabilities						(300)
Net identifiable assets acquired						1,800
Goodwill						3,500
Net assets acquired						$ 5,300
Weighted average useful life of intangible assets						8 years
Estimated amortization expense related to the intangible assets
2,018							300								300
2,019							300								300
2,020							300								300
2,021							300								300
2,022							300								300
Thereafter							600								600
Deltenna | Maximum
Estimated acquisition-date fair value of consideration
Contingent consideration						$ 7,000
Deltenna | Customer relationships
Purchase price allocation
Amortizable intangible assets						1,000
Deltenna | Technology
Purchase price allocation
Amortizable intangible assets						$ 1,100
Vocality
Sales and results of operations
Sales															1,500
Operating income (loss)															(2,900)
Net loss after taxes															(2,600)
Amortization															600
Acquisition-related expenses															1,600
Estimated acquisition-date fair value of consideration
Compensation expense															400
Fair value of consideration transferred	$ 9,600
Cash consideration paid	9,700
Contingent consideration	300
Cash paid related to compensation expenses	400
Purchase price allocation
Inventory	1,700
Accounts payable and accrued expenses	(400)
Other noncurrent liabilities	(500)
Net identifiable assets acquired	5,700
Goodwill	3,900
Net assets acquired	$ 9,600
Weighted average useful life of intangible assets	9 years
Estimated amortization expense related to the intangible assets
2,018							800								800
2,019							700								700
2,020							600								600
2,021							600								600
2,022							500								500
Thereafter							1,300								1,300
Vocality | Corporate trade names
Purchase price allocation
Indefinite intangible assets	$ 400
Vocality | Customer relationships
Purchase price allocation
Amortizable intangible assets	2,100
Vocality | Technology
Purchase price allocation
Amortizable intangible assets	$ 2,400
GATR
Sales and results of operations
Sales															84,300	43,100
Operating income (loss)															1,900	(26,400)
Net loss after taxes															1,400	(23,000)
Amortization															12,700	9,700
Gains (losses) for changes in fair value of contingent consideration															3,200	(700)
Acquisition-related expenses															600	22,000
Estimated acquisition-date fair value of consideration
Compensation expense																18,500
Compensation expense not expected to be deductible for tax purposes																15,400
Fair value of consideration transferred		$ 220,500
Cash consideration paid		236,100
Contingent consideration		2,500
Cash paid related to compensation expenses		18,100
Purchase price allocation
Accounts receivable		10,600
Inventory		3,400
Income tax receivable		5,100
Deferred tax liabilities		23,800
Accounts payable and accrued expenses		(2,400)
Net identifiable assets acquired		64,600
Goodwill		155,900
Net assets acquired		$ 220,500
Weighted average useful life of intangible assets		9 years
Estimated amortization expense related to the intangible assets
2,018							11,100								11,100
2,019							9,800								9,800
2,020							8,300								8,300
2,021							6,900								6,900
2,022							5,600								5,600
Thereafter							7,600								7,600
GATR | Maximum
Estimated acquisition-date fair value of consideration
Contingent consideration		$ 7,500
GATR | Corporate trade names
Purchase price allocation
Indefinite intangible assets		4,700
GATR | Customer relationships
Purchase price allocation
Amortizable intangible assets		51,700
GATR | Backlog
Purchase price allocation
Amortizable intangible assets		3,400
GATR | Technology
Purchase price allocation
Amortizable intangible assets		10,700
GATR | Non-compete agreements
Purchase price allocation
Amortizable intangible assets		$ 1,200
TeraLogics
Sales and results of operations
Sales															19,700	14,200
Operating income (loss)															(1,800)	(2,900)
Net loss after taxes															(1,200)	(1,600)
Amortization															3,500	3,000
Gains (losses) for changes in fair value of contingent consideration															(1,300)	(1,500)
Acquisition-related expenses															200	2,300
Estimated acquisition-date fair value of consideration
Compensation expense																1,300
Fair value of consideration transferred			$ 33,900
Cash consideration paid			28,900
Contingent consideration			5,000
Purchase price allocation
Accounts receivable			1,400
Accounts payable and accrued expenses			(500)
Other noncurrent liabilities			(100)
Net identifiable assets acquired			15,700
Goodwill			18,200
Net assets acquired			$ 33,900
Weighted average useful life of intangible assets			7 years
Estimated amortization expense related to the intangible assets
2,018							2,800								2,800
2,019							2,100								2,100
2,020							1,400								1,400
2,021							800								800
2,022							500								500
Thereafter							900								900
TeraLogics | Maximum
Estimated acquisition-date fair value of consideration
Contingent consideration			$ 9,000
TeraLogics | Maximum | Revenue thresholds
Estimated acquisition-date fair value of consideration
Contingent consideration			6,000
TeraLogics | Maximum | Contract extensions
Estimated acquisition-date fair value of consideration
Contingent consideration			3,000
TeraLogics | Customer relationships
Purchase price allocation
Amortizable intangible assets			6,700
TeraLogics | Backlog
Purchase price allocation
Amortizable intangible assets			5,600
TeraLogics | Software
Purchase price allocation
Amortizable intangible assets			2,500
TeraLogics | Non-compete agreements
Purchase price allocation
Amortizable intangible assets			$ 100
H4 Global
Sales and results of operations
Sales															3,300	2,200
Operating income (loss)															(1,100)	(600)
Net loss after taxes															(900)	(400)
Amortization															100	100
Gains (losses) for changes in fair value of contingent consideration																400
Acquisition-related expenses																100
Estimated acquisition-date fair value of consideration
Fair value of consideration transferred				$ 1,900
Cash consideration paid				900
Contingent consideration				1,000
Purchase price allocation
Goodwill				1,900
H4 Global | Maximum
Estimated acquisition-date fair value of consideration
Contingent consideration				$ 4,100
Period for contingent consideration contracts				5 years
DTECH
Sales and results of operations
Sales															39,000	34,500	45,800
Operating income (loss)															2,400	(3,000)	900
Net loss after taxes															1,300	(2,100)	500
Amortization															6,800	8,000	9,200
Gains (losses) for changes in fair value of contingent consideration															2,000	500	(3,600)
Acquisition-related expenses															300	900	$ 2,100
Estimated acquisition-date fair value of consideration
Cost of acquisition net					$ 99,500
Fair value of consideration transferred					99,400
Purchase price allocation
Cash					900
Accounts receivable					5,400
Inventory					4,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets					200
Warranty obligation					(400)
Deferred tax liabilities					3,300
Accounts payable and accrued expenses					(3,400)
Net identifiable assets acquired					41,500
Goodwill					57,900
Net assets acquired					$ 99,400
Weighted average useful life of intangible assets					7 years
Estimated amortization expense related to the intangible assets
2,018							5,500								5,500
2,019							4,100								4,100
2,020							2,800								2,800
2,021							$ 1,500								1,500
DTECH | Corporate and other
Sales and results of operations
Sales															$ (23,000)	$ (14,200)
DTECH | Maximum | Revenue thresholds
Estimated acquisition-date fair value of consideration
Contingent consideration					$ 15,000
DTECH | Customer relationships
Purchase price allocation
Amortizable intangible assets					35,100
DTECH | Backlog
Purchase price allocation
Amortizable intangible assets					2,100
DTECH | Non-compete agreements
Purchase price allocation
Amortizable intangible assets					$ 700

Acquisitions and Divestitures49

Acquisitions and Divestitures - Pro forma information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Unaudited pro forma information
Net sales	$ 1,109.4	$ 1,097.5
Net loss from continuing operations	(26.1)	$ (13.7)
Adjustments made for transaction expenses	$ 0

Fair Value of Financial Instr50

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Feb. 02, 2016	Dec. 21, 2015	Nov. 04, 2015	Oct. 01, 2015	Dec. 16, 2014	Jul. 31, 2017	Sep. 30, 2017	Sep. 30, 2016
Deltenna
Assets and liabilities measured at fair value on a recurring basis
Volatility for underlying earnings metrics used in determination of fair value of contingent consideration							40.00%
Initial measurement recognized at acquisition						$ 5,300
TeraLogics
Assets and liabilities measured at fair value on a recurring basis
Volatility for underlying earnings metrics used in determination of fair value of contingent consideration							15.00%	17.00%
Initial measurement recognized at acquisition		$ 33,900
GATR
Assets and liabilities measured at fair value on a recurring basis
Volatility for underlying earnings metrics used in determination of fair value of contingent consideration							15.00%	17.00%
Initial measurement recognized at acquisition	$ 220,500
DTECH
Assets and liabilities measured at fair value on a recurring basis
Volatility for underlying earnings metrics used in determination of fair value of contingent consideration								18.00%
Initial measurement recognized at acquisition					$ 99,400
H4 Global
Assets and liabilities measured at fair value on a recurring basis
Term of contingent consideration				5 years
Initial measurement recognized at acquisition			$ 1,900
Level 2
Debt instruments
Fair Value							$ 202,100	$ 210,000
Carrying value							200,000	201,000
Level 3
Assets and liabilities measured at fair value on a recurring basis
Balance at the Beginning period				$ 7,507			11,267	7,507
Initial measurement recognized at acquisition							1,328	9,202
Cash paid to seller							(3,500)	(6,000)
Adjustment to the provisional acquisition date valuation								(716)
Total remeasurement (gain) loss recognized in earnings							(3,878)	1,274
Balance at the ending period							5,217	11,267
Level 3 | Deltenna
Assets and liabilities measured at fair value on a recurring basis
Initial measurement recognized at acquisition							1,328
Total remeasurement (gain) loss recognized in earnings							48
Balance at the ending period							1,376
Level 3 | GATR
Assets and liabilities measured at fair value on a recurring basis
Balance at the Beginning period							3,200
Initial measurement recognized at acquisition								2,500
Total remeasurement (gain) loss recognized in earnings							(3,200)	700
Balance at the ending period								3,200
Level 3 | DTECH
Assets and liabilities measured at fair value on a recurring basis
Balance at the Beginning period				$ 7,507			2,000	7,507
Cash paid to seller								(5,000)
Total remeasurement (gain) loss recognized in earnings							(2,000)	(507)
Balance at the ending period								2,000
Level 3 | H4 Global
Assets and liabilities measured at fair value on a recurring basis
Balance at the Beginning period							567
Initial measurement recognized at acquisition								1,602
Adjustment to the provisional acquisition date valuation								(616)
Total remeasurement (gain) loss recognized in earnings							24	(419)
Balance at the ending period							591	567
Assets and liabilities measured at fair value | Total
Assets
Cash equivalents							8,501	57,455
Marketable securities								12,996
Current derivative assets							2,591	14,770
Noncurrent derivative assets							1,128	1,201
Total assets measured at fair value							12,220	86,422
Liabilities
Current derivative liabilities							3,456	13,752
Noncurrent derivative liabilities							1,128	1,334
Total liabilities measured at fair value							9,801	26,353
Assets and liabilities measured at fair value | Deltenna | Total
Liabilities
Noncurrent contingent consideration to seller							1,376
Assets and liabilities measured at fair value | GATR | Total
Liabilities
Noncurrent contingent consideration to seller								3,200
Assets and liabilities measured at fair value | DTECH | Total
Liabilities
Noncurrent contingent consideration to seller								2,000
Assets and liabilities measured at fair value | H4 Global | Total
Liabilities
Noncurrent contingent consideration to seller							591	567
Assets and liabilities measured at fair value | Level 1
Assets
Cash equivalents							8,501	57,455
Total assets measured at fair value							8,501	57,455
Assets and liabilities measured at fair value | Level 2
Assets
Marketable securities								12,996
Current derivative assets							2,591	14,770
Noncurrent derivative assets							1,128	1,201
Total assets measured at fair value							3,719	28,967
Liabilities
Current derivative liabilities							3,456	13,752
Noncurrent derivative liabilities							1,128	1,334
Total liabilities measured at fair value							4,584	15,086
Assets and liabilities measured at fair value | Level 3
Liabilities
Total liabilities measured at fair value							5,217	11,267
Assets and liabilities measured at fair value | Level 3 | Deltenna
Liabilities
Noncurrent contingent consideration to seller							1,376
Assets and liabilities measured at fair value | Level 3 | GATR
Liabilities
Noncurrent contingent consideration to seller								3,200
Assets and liabilities measured at fair value | Level 3 | DTECH
Liabilities
Noncurrent contingent consideration to seller								2,000
Assets and liabilities measured at fair value | Level 3 | H4 Global
Liabilities
Noncurrent contingent consideration to seller							591	567
Contract extensions | Level 3 | TeraLogics
Assets and liabilities measured at fair value on a recurring basis
Balance at the Beginning period							1,400
Initial measurement recognized at acquisition								2,000
Cash paid to seller							(1,000)	(1,000)
Adjustment to the provisional acquisition date valuation								(100)
Total remeasurement (gain) loss recognized in earnings							400	500
Balance at the ending period							800	1,400
Contract extensions | Assets and liabilities measured at fair value | TeraLogics | Total
Liabilities
Noncurrent contingent consideration to seller							800	1,400
Contract extensions | Assets and liabilities measured at fair value | Level 3 | TeraLogics
Liabilities
Noncurrent contingent consideration to seller							800	1,400
Revenue Targets | Level 3 | TeraLogics
Assets and liabilities measured at fair value on a recurring basis
Balance at the Beginning period							4,100
Initial measurement recognized at acquisition								3,100
Cash paid to seller							(2,500)
Total remeasurement (gain) loss recognized in earnings							850	1,000
Balance at the ending period							2,450	4,100
Revenue Targets | Assets and liabilities measured at fair value | TeraLogics | Total
Liabilities
Noncurrent contingent consideration to seller							2,450	4,100
Revenue Targets | Assets and liabilities measured at fair value | Level 3 | TeraLogics
Liabilities
Noncurrent contingent consideration to seller							$ 2,450	$ 4,100

Accounts Receivable (Details)

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Components of accounts receivable under long-term contracts
Total accounts receivable	$ 371,933	$ 323,695
Less estimated amounts not currently due	(17,457)	(20,926)
Accounts receivable under long-term contracts, current	354,476	302,769
U.S. government contracts
Components of accounts receivable under long-term contracts
Amounts billed	53,450	34,785
Recoverable costs and accrued profits on progress completed--not billed	36,341	33,729
Total accounts receivable	89,791	68,514
Commercial customers
Components of accounts receivable under long-term contracts
Amounts billed	131,532	95,173
Recoverable costs and accrued profits on progress completed--not billed	150,610	160,008
Total accounts receivable	$ 282,142	$ 255,181

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Inventories
Finished products	$ 4,369	$ 10,018
Work In Process And Inventoried Costs Under Long Term Contracts Net Of Reserves	84,131	62,570
Materials and purchased parts	10,163	12,102
Customer advances	(10,948)	(18,328)
Net inventories	87,715	66,362
Costs incurred outside the scope of work or in advance of a contract award	4,300	700
General and administrative amounts for certain government contracts remaining in inventory	$ 2,500	$ 2,300

Property, Plant and Equipment53

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended			36 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2017
PROPERTY, PLANT AND EQUIPMENT
Accumulated depreciation and amortization	$ (127,530)	$ (108,559)		$ (127,530)
Property, plant and equipment - net	113,220	93,925		113,220
Development expense	52,652	31,976	$ 17,992
Amortization of intangible assets	30,245	29,356	19,860
Depreciation of plant and equipment and amortization of leasehold improvements	17,800	11,000	9,300
Land and land improvements
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, Gross	16,139	15,854		16,139
Buildings and improvements
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, Gross	$ 52,625	49,856		52,625
Buildings and improvements | Minimum
PROPERTY, PLANT AND EQUIPMENT
Estimated useful life	P15Y
Buildings and improvements | Maximum
PROPERTY, PLANT AND EQUIPMENT
Estimated useful life	P39Y
Machinery and other equipment
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, Gross	$ 73,235	68,001		73,235
Machinery and other equipment | Minimum
PROPERTY, PLANT AND EQUIPMENT
Estimated useful life	P5Y
Machinery and other equipment | Maximum
PROPERTY, PLANT AND EQUIPMENT
Estimated useful life	P10Y
Software
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, Gross	$ 62,297	51,191		62,297
Software | Minimum
PROPERTY, PLANT AND EQUIPMENT
Estimated useful life	P3Y
Software | Maximum
PROPERTY, PLANT AND EQUIPMENT
Estimated useful life	P7Y
ERP
PROPERTY, PLANT AND EQUIPMENT
Costs related to the purchase and development of software	$ 40,600	45,200	27,500	113,300
Addition to capitalized software expenses	16,700	20,300	16,000
Development expense	23,900	24,900	$ 11,500
Leasehold improvements
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, Gross	13,298	9,432		13,298
Construction and internal-use software development in progress
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, Gross	$ 23,156	$ 8,150		$ 23,156

Goodwill and Purchased Intang54

Goodwill and Purchased Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2017USD ($)item	Sep. 30, 2016USD ($)
Changes in the carrying amount of goodwill
Balance at the beginning of the period	$ 312,596	$ 143,549
Acquisitions	5,885	175,150
Foreign currency exchange rate changes	3,081	(6,103)
Balance at the end of the period	$ 321,562	312,596
Number of remaining reporting units whose estimated fair values exceeded carrying values | item	3
Impairment of goodwill	$ 0
Transportation Systems
Changes in the carrying amount of goodwill
Balance at the beginning of the period	49,630	55,974
Foreign currency exchange rate changes	1,240	(6,344)
Balance at the end of the period	$ 50,870	49,630
Transportation Systems | Minimum
Changes in the carrying amount of goodwill
Estimated percentage of excess of fair value over carrying value	100.00%
Defense Systems
Changes in the carrying amount of goodwill
Balance at the beginning of the period	$ 262,966	87,575
Acquisitions	5,885	175,150
Foreign currency exchange rate changes	1,841	241
Balance at the end of the period	$ 270,692	$ 262,966
Defense Systems | Minimum
Changes in the carrying amount of goodwill
Estimated percentage of excess of fair value over carrying value	10.00%
Cubic Global Defense Services | Minimum
Changes in the carrying amount of goodwill
Estimated percentage of excess of fair value over carrying value	10.00%

Goodwill and Purchased Intang55

Goodwill and Purchased Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Purchased intangible assets
Gross Carrying Amount	$ 194,415	$ 185,593
Accumulated Amortization	(104,557)	(73,579)
Net Carrying Amount	89,858	112,014
Amortization expense	30,245	29,356	$ 19,860
Expected amortization for purchased intangibles for each of the next five years
2,018	25,952
2,019	20,177
2,020	14,476
2,021	10,773
2,022	7,510
Thereafter	10,970
Total expected amortization for purchased intangibles	89,858
Contract and program intangibles
Purchased intangible assets
Gross Carrying Amount	151,602	146,898
Accumulated Amortization	(90,988)	(65,257)
Net Carrying Amount	60,614	81,641
Other purchased intangibles
Purchased intangible assets
Gross Carrying Amount	42,813	38,695
Accumulated Amortization	(13,569)	(8,322)
Net Carrying Amount	29,244	$ 30,373
Transportation Systems
Expected amortization for purchased intangibles for each of the next five years
2,018	4,944
2,019	2,886
2,020	947
2,021	698
2,022	598
Thereafter	297
Total expected amortization for purchased intangibles	10,370
Cubic Global Defense Services
Expected amortization for purchased intangibles for each of the next five years
2,018	805
2,019	530
2,020	315
2,021	261
2,022	261
Thereafter	893
Total expected amortization for purchased intangibles	3,065
Cubic Mission Solutions
Expected amortization for purchased intangibles for each of the next five years
2,018	20,203
2,019	16,761
2,020	13,214
2,021	9,814
2,022	6,651
Thereafter	9,780
Total expected amortization for purchased intangibles	$ 76,423

Financing Arrangements (Details

Financing Arrangements (Details) $ in Thousands, $ in Millions	Aug. 11, 2016USD ($)	Feb. 02, 2016USD ($)	Jul. 17, 2015USD ($)	May 31, 2017USD ($)	Mar. 31, 2013USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2017NZD ($)	Sep. 30, 2017USD ($)
Financial arrangement
Long-term debt, gross							$ 201,012			$ 200,000
Less unamortized debt issuance costs							(271)			(239)
Less current portion							(450)
Long-term debt							200,291			199,761
Maturities of long-term debt
2,018										0
2,019										0
2,020										10,700
2,021										35,700
2,022										35,700
Amount of interest paid						$ 14,800	11,000	$ 4,800
Short term borrowings
Letters of credit outstanding										94,500
Debt issuance costs incurred							3,647
Self-insurance liabilities							8,200			7,600
Letters of credit primarily for self-insured liabilities
Short term borrowings
Letters of Credit and bank guarantees outstanding										17,100
Fair value of instruments										0
Letters of credit and bank guarantees
Short term borrowings
Letters of Credit and bank guarantees outstanding										77,400
New Zealand
Short term borrowings
Maximum borrowing capacity under credit agreement									$ 0.5	400
Borrowings outstanding										$ 0
Senior unsecured notes
Financial arrangement
Interest rate (as a percent)		3.93%	3.70%		3.35%
Maturities of long-term debt
Additional senior notes principal amount agreed to be issued		$ 75,000	$ 25,000		$ 100,000
Short term borrowings
Coupon rate increase based on leverage ratio (as a percent)			0.50%
Series A senior unsecured notes
Financial arrangement
Interest rate (as a percent)									3.35%	3.35%
Long-term debt, gross							50,000			$ 50,000
Series B senior unsecured notes
Financial arrangement
Interest rate (as a percent)									3.35%	3.35%
Long-term debt, gross							50,000			$ 50,000
Series C senior unsecured notes
Financial arrangement
Interest rate (as a percent)									3.70%	3.70%
Long-term debt, gross							25,000			$ 25,000
Series D senior unsecured notes
Financial arrangement
Interest rate (as a percent)									3.93%	3.93%
Long-term debt, gross							$ 75,000			$ 75,000
Mortgage notes | United Kingdom
Financial arrangement
Interest rate (as a percent)							6.48%
Long-term debt, gross							$ 1,012
Revolving credit agreement
Short term borrowings
Maximum borrowing capacity under credit agreement										400,000
Borrowings outstanding										55,000
Letters of credit outstanding										81,300
Available amount under line of credit										$ 263,700
Coupon rate increase based on leverage ratio (as a percent)						0.75%
Cost of debt revision				$ 400
Weighted average interest rate on outstanding borrowings									3.24%	3.24%
Debt issuance costs incurred	$ 1,300	$ 2,300
Unamortized debt issuance costs										$ 2,800
Revolving credit agreement | United Kingdom
Short term borrowings
Cash on deposit as collateral										8,400
Other revolving credit facilities
Short term borrowings
Letters of credit outstanding										$ 13,200
Secured letter of credit agreement | United Kingdom
Short term borrowings
Borrowings outstanding							62,700
Cash on deposit as collateral							$ 69,400

Commitments (Details)

Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Commitments
Sublease income	$ 200	$ 300	$ 300
Rental expense, net of sublease income	10,500	$ 9,600	$ 8,600
Future minimum payments, net of minimum sublease income, under noncancelable operating leases
2,018	10,115
2,019	8,759
2,020	7,734
2,021	7,177
2,022	4,657
Thereafter	11,273
Total future minimum payments, net of minimum sublease income	$ 49,715
Maximum
Commitments
Term of lease	10 years

Income Taxes - Discontinued ope

Income Taxes - Discontinued operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Original tax expense
Original tax expense	$ 15,100
Income tax expense - continuing operations	14,658	$ (14,357)	$ 46,626
Income tax expense - discontinued operations	$ 400

Income Taxes - Components of in

Income Taxes - Components of income (loss) and provision for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Components of income (loss) before income taxes
United States	$ (70,566)	$ (76,136)	$ (33,827)
Foreign	59,484	49,699	90,623
Income (Loss) from continuing operations before income taxes	(11,082)	(26,437)	56,796
Current:
Federal	(4,070)	(1,679)	(4,567)
State	878	(618)	617
Foreign	13,869	8,249	20,266
Total current	10,677	5,952	16,316
Deferred:
Federal	2,257	(16,256)	24,834
State	569	(4,333)	4,857
Foreign	1,155	280	619
Total deferred	3,981	(20,309)	30,310
Provision (benefit) for income taxes	$ 14,658	$ (14,357)	$ 46,626

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of income tax and unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Reconciliation of income tax computed at the U.S. federal statutory tax rate to income tax expense
Tax expense at U.S. statutory rate	$ (3,877)	$ (9,252)	$ 19,875
State income taxes, net of federal tax effect	(923)	(1,754)	(584)
Nondeductible expenses	(169)	7,765	1,487
Change in reserve for tax contingencies	(4,435)	27	(1,192)
Change in deferred tax asset valuation allowance	17,374	(5,382)	40,869
Foreign income taxed at less than statutory rate	9,912	(2,999)	(11,924)
Research and development credits	(3,459)	(2,542)	(1,897)
Other	235	(220)	(8)
Provision (benefit) for income taxes	14,658	(14,357)	46,626
Compensation expense not expected to be deductible for tax purposes		6,300
Change in deferred tax asset valuation allowance, tax credit carryforwards	13,100
Change in deferred tax asset valuation allowance, domestic net deferred tax assets			35,800
Tax charge from deferred taxes on unremitted foreign earnings	$ 9,500
Research tax credit		$ 1,000	$ 1,200

Income Taxes - Deferred tax ass

Income Taxes - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Deferred tax assets:
Accrued employee benefits	$ 15,863	$ 12,044
Long-term contracts and inventory valuation reductions	13,974	12,422
Allowances for loss contingencies	4,212	3,786
Deferred compensation	4,830	4,369
Retirement benefits	6,214	12,282
Tax credit carryforwards	31,161	16,512
Net operating losses carryforwards	3,968	12,713
Other	2,509	2,563
Total gross deferred tax assets	82,731	76,691
Valuation allowance	(57,106)	(42,179)
Total deferred tax assets	25,625	34,512
Deferred tax liabilities:
Deferred revenue	(3,729)	(11,192)
Unremitted foreign earnings	(11,910)	(2,347)
Property, plant and equipment	(3,137)	(1,443)
Intangible assets	(9,713)	(16,068)
Foreign currency mark-to-market		(191)
Other	(158)	(601)
Total deferred tax liabilities	(28,647)	(31,842)
Net deferred tax asset		$ 2,670
Net deferred tax liabilities	$ (3,022)

Income Taxes - Tax credit carry

Income Taxes - Tax credit carryforwards (Details) $ in Thousands	Sep. 30, 2017USD ($)
U.S.
Income tax credit carryforwards
Income tax credit carryforward	$ 21,900
U.S. | Foreign Tax Credits
Income tax credit carryforwards
Income tax credit carryforward	15,567
U.S. | Research and Development Tax Credits
Income tax credit carryforwards
Income tax credit carryforward	6,303
State
Income tax credit carryforwards
Income tax credit carryforward	20,500
State | Research and Development Tax Credits
Income tax credit carryforwards
Income tax credit carryforward	$ 20,486

Income Taxes - Operating loss c

Income Taxes - Operating loss carryforwards (Details) $ in Thousands	Sep. 30, 2017USD ($)
State
Operating loss carryforwards
Operating Loss Carryforwards	$ 37,138
Foreign
Operating loss carryforwards
Operating Loss Carryforwards	$ 10,903

Income Taxes - Tax valuation al

Income Taxes - Tax valuation allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Tax valuation allowance
Deferred tax asset valuation allowance	$ 57,106	$ 42,179
Change in valuation allowance	14,900
Net tax benefit before offset by amounts recorded through OCI	17,400
Deferred tax liability	28,647	$ 31,842
Foreign
Tax valuation allowance
Deferred tax liability	$ 11,900

Income Taxes - Unrecognized tax

Income Taxes - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Net changes in the liability for unrecognized tax benefits
Balance at the beginning of the period	$ 16,932	$ 12,619
Additions (reductions) for tax positions taken in prior years	399	3,641
Recognition of benefits from expiration of statutes	(26)	(359)
Recognition of benefits from open years effectively settled	(5,359)
Additions for tax positions related to the current year	1,302	986
Additions for tax positions related to current year acquisitions		45
Balance at the end of the period	13,248	16,932	$ 12,619
Unrecognized tax benefits from permanent tax adjustments that, if recognized, would affect the effective rate	3,700	7,500
Unrecognized tax benefits related to settlements with taxing authorities	2,900
Interest and penalties accrued	900	1,600
Total liability for uncertain tax issues	12,000	15,500
Cash amounts paid for income taxes, net of refunds received	$ 1,600	$ 14,200	$ 15,200

Derivative Instruments and He66

Derivative Instruments and Hedging Activities - Notional principal amounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities
Term of derivative contract	3 years
Foreign currency forwards
Derivative Instruments and Hedging Activities
Unrealized gain (loss) on derivative	$ 100	$ 8,200
Instruments designated as accounting hedges: | Foreign currency forwards
Derivative Instruments and Hedging Activities
Notional principal outstanding derivative instruments	125,486	158,664
Instruments not designated as accounting hedges: | Foreign currency forwards
Derivative Instruments and Hedging Activities
Notional principal outstanding derivative instruments	35,117	115,070
Notional principal outstanding derivative instruments designed to manage exposure	$ 18,500	$ 78,400

Derivative Instruments and He67

Derivative Instruments and Hedging Activities - Fair value of derivative financial instruments (Details) - Instruments designated as accounting hedges: - Foreign currency forwards - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments and Hedging Activities
Asset derivatives	$ 3,719	$ 15,970
Liability derivatives	4,584	15,085
Other current assets
Derivative Instruments and Hedging Activities
Asset derivatives	2,591	14,769
Other noncurrent assets
Derivative Instruments and Hedging Activities
Asset derivatives	1,128	1,201
Other current liabilities
Derivative Instruments and Hedging Activities
Liability derivatives	3,456	13,752
Other noncurrent liabilities
Derivative Instruments and Hedging Activities
Liability derivatives	$ 1,128	$ 1,333

Derivative Instruments and He68

Derivative Instruments and Hedging Activities - Gains and losses recognized (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Derivative instruments and hedging activities
Estimated unrealized net gains (losses) from cash flow hedges which are expected to be reclassified into earnings in the next twelve months	$ 600
Foreign currency forwards | Other income/(expense), net
Derivative instruments and hedging activities
Gains (losses) recognized in OCI	(2,200)	$ (806)
Gains (losses) reclassified into earnings - Effective Portion	551	1,522
Gain (losses) recognized - Ineffective Portion and Amount excluded from effectiveness testing	$ 100	$ 100

Pension, Profit Sharing and O69

Pension, Profit Sharing and Other Benefit Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2010
Defined Contribution Plans
Company contributions to defined contribution plan	$ 13,300	$ 12,100	$ 10,900
Amounts recognized in Accumulated OCI
Valuation allowance on deferred tax asset	$ (57,106)	(42,179)
Components of net periodic pension cost (benefit)
Settlement loss		2,671
Equity securities | Minimum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	20.00%
Equity securities | Maximum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	55.00%
Debt securities | Minimum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	25.00%
Debt securities | Maximum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	75.00%
Cash | Minimum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	0.00%
Cash | Maximum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	55.00%
Real Estate | Minimum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	0.00%
Real Estate | Maximum
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Target allocation percentage	10.00%
Defined Benefit Pension Plans
Defined Contribution Plans
Number of European employees covered by contributory defined benefit pension plan for which benefits were frozen (as a percent)				50.00%
Expected contribution to defined benefit pension plans in next fiscal year	$ 5,100
Unrecognized actuarial loss expected to be recognized in net pension cost over next fiscal year	(2,700)
Unrecognized actuarial loss expected to be recognized in net pension cost over next fiscal year, net of tax	2,100
Plan assets expected to be returned in 2018	0
Projected benefit obligation, ABO and fair value of plan assets for the defined benefit pension plans in which the ABO was in excess of the fair value of plan assets
Projected benefit obligation	235,097	241,117
Accumulated benefit obligation	235,097	241,117
Fair value of plan assets	209,722	194,253
Change in benefit obligations:
Net benefit obligation at the beginning of the year	241,117	227,527
Service cost	617	595	670
Interest cost	7,091	8,972	9,073
Actuarial (gain) loss	(10,082)	41,583
Gross benefits paid	(7,549)	(8,365)
Settlements		(10,424)
Foreign currency exchange rate changes	3,903	(18,771)
Net benefit obligation at the end of the year	235,097	241,117	227,527
Change in plan assets:
Fair value of plan assets at the beginning of the year	194,253	201,502
Actual return on plan assets	14,915	23,775
Employer contributions	5,354	4,271
Gross benefits paid	(7,549)	(8,365)
Settlements		(10,424)
PBGC Premium paid	(348)	(362)
Administrative expenses	(547)	(925)
Foreign currency exchange rate changes	3,644	(15,219)
Fair value of plan assets at the end of the year	209,722	194,253	201,502
Unfunded status of the plans	(25,375)	(46,864)
Unrecognized net actuarial loss	58,572	72,909
Net amount recognized	33,197	26,045
Amounts recognized in Accumulated OCI
Liability adjustment to OCI	(58,572)	(72,909)
Deferred tax asset	15,033	19,236
Valuation allowance on deferred tax asset	(2,107)	(5,153)
Accumulated other comprehensive loss	(45,646)	(58,826)
Components of net periodic pension cost (benefit)
Service cost	617	595	670
Interest cost	7,091	8,972	9,073
Expected return on plan assets	(12,928)	(13,182)	(13,835)
Amortization of actuarial loss	3,700	1,869	705
Settlement loss		2,671
Administrative expenses	474	177	163
Net pension cost (benefit)	$ (1,046)	$ 1,102	$ (3,224)
Weighted-average assumptions used to determine benefit obligation at the end of the year
Discount rate (as a percent)	3.30%	3.00%	4.10%
Rate of compensation increase (as a percent)	3.20%	3.10%	3.10%
Weighted-average assumptions used to determine net periodic benefit cost at the end of the year
Discount rate (as a percent)	3.00%	4.10%	4.20%
Expected return on plan assets (as a percent)	6.80%	6.80%	6.90%
Rate of compensation increase (as a percent)	3.10%	3.10%	3.20%
Defined Benefit Pension Plans | Equity securities
Change in plan assets:
Fair value of plan assets at the beginning of the year	$ 83,877
Fair value of plan assets at the end of the year	101,433	$ 83,877
Defined Benefit Pension Plans | Real Estate
Change in plan assets:
Fair value of plan assets at the beginning of the year	7,561
Fair value of plan assets at the end of the year	4,790	7,561
Non-qualified deferred compensation plan
Deferred compensation plans
Liabilities associated with the non-qualified deferred compensation plan	11,400	10,600
Assets set aside to fund deferred compensation liabilities	$ 5,300	$ 3,600
Employee Stock Purchase Plan
Employee Stock Purchase Plan
ESPP discount rate (as a percent)	5.00%
Maximum annual employee contributions	$ 25,000

Pension, Profit Sharing and O70

Pension, Profit Sharing and Other Benefit Plans - Fair value by asset category and hierarchy (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	$ 209,722	$ 194,253	$ 201,502
Net Asset Value
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	207,057	191,182
Cash and cash equivalents
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	2,665	3,071
Cash and cash equivalents | Level 1
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	2,665	3,071
Equity securities
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	101,433	83,877
Fixed-income funds
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	84,188	72,219
Diversified growth fund
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	16,646	27,525
Real Estate
Fair value of assets of defined benefit pension plans by asset category
Fair value of the assets	$ 4,790	$ 7,561

Pension, Profit Sharing and O71

Pension, Profit Sharing and Other Benefit Plans - Expected benefit payments (Details) $ in Thousands	Sep. 30, 2017USD ($)
Expected pension benefit payments
2,018	$ 8,330
2,019	8,753
2,020	9,148
2,021	9,358
2,022	9,543
2022-2026	$ 50,890

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details)	12 Months Ended	60 Months Ended
	Sep. 30, 2017categoryitemshares	Sep. 30, 2017shares
Stockholders' Equity
Vesting period	3 years
RSUs
Stockholders' Equity
Number of units awarded (in shares)		1,917,903
Number of shares of common stock that each award holder has the contingent right to receive	1
Vested awards to date	451,608	451,608
Expected awards vested (in shares)	417,882
Time-based RSUs
Stockholders' Equity
Number of units awarded (in shares)		924,605
Number of equal installments for vesting of stock awards | item	4
Performance-based RSUs
Stockholders' Equity
Number of units awarded (in shares)		993,298
Vesting period	3 years
Number of vesting criteria which have to be satisfied out of total vesting criteria | category	1
Number of vesting criteria | category	3

Stockholders' Equity - RSU acti

Stockholders' Equity - RSU activity (Details) - RSUs - $ / shares	Oct. 01, 2017	Sep. 30, 2017	Sep. 30, 2016
Number of Shares
Balance unvested at the beginning of the period (in shares)	1,045,187	889,129	759,902
Granted (in shares)		395,913	471,627
Vested (in shares)		(158,243)	(130,678)
Forfeited (in shares)		(81,612)	(211,722)
Balance unvested at the end of the period (in shares)		1,045,187	889,129
Weighted Average Grant-Date Fair Value
Balance unvested at the beginning of the period (in dollars per share)	$ 45.86	$ 45.98	$ 47.24
Granted (in dollars per share)		46.20	43.72
Vested (in dollars per share)		46.15	46.94
Forfeited (in dollars per share)		48.32	44.86
Balance unvested at the end of the period (in dollars per share)		$ 45.86	$ 45.98
Shares available for future grants		698,129
Subsequent event
Number of Shares
Vested (in shares)	(123,237)

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Stock-Based Compensation
Non-cash compensation expense related to stock-based awards	$ 5,012	$ 7,748	$ 7,407
Estimated forfeiture rate (as a percent)	12.50%
Cost of sales
Stock-Based Compensation
Non-cash compensation expense related to stock-based awards	$ 338	513	362
Selling, general and administrative
Stock-Based Compensation
Non-cash compensation expense related to stock-based awards	4,674	$ 7,235	$ 7,045
RSUs
Stock-Based Compensation
Unrecognized compensation cost related to unvested awards	31,500
Aggregate fair value of awards	$ 18,500
Weighted-average period of recognition	1 year 9 months 18 days

Business Segment Information -

Business Segment Information - Financial data (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Revenue recognition
Number of primary business segments | segment									3
Sales	$ 349,115	$ 266,184	$ 248,040	$ 244,370	$ 308,824	$ 275,062	$ 265,016	$ 221,699	$ 1,107,709	$ 1,070,601	$ 1,028,899
Operating income (loss)	21,207	$ (6,872)	$ (6,084)	$ (5,623)	7,060	$ 7,322	$ (15,618)	$ (10,413)	2,628	(11,649)	60,403
Assets - Discontinued Operations	174,200				185,500				174,200	185,500	197,600
Assets	1,336,285				1,504,408				1,336,285	1,504,408	1,300,300
Depreciation and amortization									48,045	40,323	29,185
Capital expenditures									36,916	32,093	22,164
Transportation Systems
Revenue recognition
Sales									578,600	586,400	566,800
Operating income (loss)									39,800	57,500	75,900
Assets	335,100				338,200				335,100	338,200	410,000
Depreciation and amortization									8,800	8,200	10,800
Capital expenditures									6,900	2,200	2,000
Defense Systems
Revenue recognition
Sales									360,200	374,700	369,600
Operating income (loss)									28,100	19,900	15,300
Assets	280,100				211,800				280,100	211,800	195,900
Depreciation and amortization									10,400	7,500	7,800
Capital expenditures									5,900	6,800	500
Cubic Mission Solutions
Revenue recognition
Sales									168,900	109,500	92,500
Operating income (loss)									(9,300)	(37,000)	3,100
Assets	390,500				404,400				390,500	404,400	145,300
Depreciation and amortization									23,800	21,200	9,300
Capital expenditures									1,700	2,100	100
Corporate
Revenue recognition
Assets	$ 156,400				$ 364,800				156,400	364,800	351,500
Depreciation and amortization									5,000	3,400	1,300
Capital expenditures									22,400	21,000	19,600
Unallocated corporate expenses and other
Revenue recognition
Operating income (loss)									$ (56,000)	$ (52,000)	$ (33,900)

Business Segment Information 76

Business Segment Information - Geographic information (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Business segment financial data
Sales	$ 349,115	$ 266,184	$ 248,040	$ 244,370	$ 308,824	$ 275,062	$ 265,016	$ 221,699	$ 1,107,709	$ 1,070,601	$ 1,028,899
Long-lived assets, net	119,600				98,600				119,600	98,600	72,200
United States
Business segment financial data
Sales									522,800	471,600	397,800
Long-lived assets, net	100,600				83,900				100,600	83,900	59,300
United Kingdom
Business segment financial data
Sales									219,400	243,000	282,400
Long-lived assets, net	11,700				9,400				11,700	9,400	8,600
Canada
Business segment financial data
Sales									31,500	44,600	17,500
Australia
Business segment financial data
Sales									175,600	154,000	164,600
Middle East
Business segment financial data
Sales									64,800	71,000	67,700
Far East
Business segment financial data
Sales									47,900	40,000	39,300
Other foreign countries
Business segment financial data
Sales									45,700	46,400	59,600
Long-lived assets, net	$ 7,300				$ 5,300				$ 7,300	$ 5,300	$ 4,300

Business Segment Information 77

Business Segment Information - Customer concentration (Details) - Sales Revenue - Customer Concentration - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
U.S. Government Agencies
Customer sales concentration
Sales revenue	$ 327.8	$ 267.5	$ 267.9
Transport for London (TfL)
Customer sales concentration
Sales revenue	$ 147.3	$ 156.3	$ 183.2

Business Segment Information 78

Business Segment Information - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended									11 Months Ended	12 Months Ended
	Sep. 30, 2017USD ($)$ / shares	Jun. 30, 2017USD ($)$ / shares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2016USD ($)$ / shares	Sep. 30, 2016USD ($)$ / shares	Jun. 30, 2016USD ($)$ / shares	Mar. 31, 2016USD ($)$ / shares	Dec. 31, 2015USD ($)$ / shares	Mar. 31, 2015USD ($)	Aug. 31, 2015USD ($)	Sep. 30, 2017USD ($)$ / shares	Sep. 30, 2016USD ($)item$ / shares	Sep. 30, 2015USD ($)contract$ / shares
Revenue recognition
Increase (decrease) in operating income	$ 21,207	$ (6,872)	$ (6,084)	$ (5,623)	$ 7,060	$ 7,322	$ (15,618)	$ (10,413)			$ 2,628	$ (11,649)	$ 60,403
Net income (loss) from continuing operations											$ (25,740)	$ (12,080)	$ 10,170
Increase (decrease) in net income per common share (in dollars per share) | $ / shares	$ 0.49	$ (0.81)	$ 0.02	$ (0.11)	$ (0.29)	$ 0.17	$ 0.38	$ (0.20)			$ (0.41)	$ 0.06	$ 0.85
Restructuring costs											$ 2,260	$ 1,278	$ 5,713
Defense Systems
Revenue recognition
Increase (decrease) in operating income											28,100	19,900	15,300
Restructuring costs											900	300	4,600
Transportation Systems
Revenue recognition
Increase (decrease) in operating income											39,800	57,500	$ 75,900
Number of transportation systems service contracts contains annual system usage incentives | contract													1
Sales related to annual system usage incentives									$ 9,300	$ 3,100
Restructuring costs											400	$ 1,000	$ 600
Reduction in employee headcount | item												20
Unallocated corporate expenses and other
Revenue recognition
Increase (decrease) in operating income											(56,000)	$ (52,000)	(33,900)
Restructuring costs											1,000		500
Change in estimated total costs | Adjustment
Revenue recognition
Increase (decrease) in operating income	$ (1,600)				$ 2,300						5,700	(900)	(13,800)
Net income (loss) from continuing operations	$ (1,100)				$ 1,500						$ 3,200	$ (500)	$ (7,500)
Increase (decrease) in net income per common share (in dollars per share) | $ / shares	$ (0.04)				$ 0.06						$ 0.12	$ (0.02)	$ (0.28)

Business Segment Information 79

Business Segment Information - Restructuring liability and employee separation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Restructuring liability
Balance as of the beginning of the period	$ 553	$ 1,893
Accrued costs	2,260	1,278	$ 5,713
Cash payments	(1,838)	(2,618)
Balance as of the end of the period	$ 975	$ 553	$ 1,893

Business Segment Information 80

Business Segment Information - Note Receivable (Details) - Defense Systems $ in Millions	12 Months Ended
	Sep. 30, 2017USD ($)
Note receivable
Note receivable	$ 2.7
Impairment loss	$ 0.2

Summary of Quarterly Results 81

Summary of Quarterly Results of Operations (Unaudited)) - Quarterly results (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Summary of Quarterly Results of Operations (Unaudited)
Net sales	$ 349,115	$ 266,184	$ 248,040	$ 244,370	$ 308,824	$ 275,062	$ 265,016	$ 221,699	$ 1,107,709	$ 1,070,601	$ 1,028,899
Operating income (loss)	21,207	(6,872)	(6,084)	(5,623)	7,060	7,322	(15,618)	(10,413)	2,628	(11,649)	60,403
Net loss after taxes	$ 13,155	$ (21,957)	$ 461	$ (2,868)	$ (7,493)	$ 4,498	$ 10,144	$ (5,414)	$ (11,209)	$ 1,735	$ 22,885
Net income (loss) per share, basic (in dollars per share)	$ 0.49	$ (0.81)	$ 0.02	$ (0.11)	$ (0.29)	$ 0.17	$ 0.38	$ (0.20)	$ (0.41)	$ 0.06	$ 0.85
Net income (loss) per share, diluted (in dollars per share)	$ 0.49	$ (0.81)	$ 0.02	$ (0.11)	$ (0.29)	$ 0.17	$ 0.38	$ (0.20)	$ (0.41)	$ 0.06	$ 0.85

Summary of Quarterly Results 82

Summary of Quarterly Results of Operations (Unaudited) - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Summary Of quarterly results of operations
Increase (decrease) in operating income	$ 21,207	$ (6,872)	$ (6,084)	$ (5,623)	$ 7,060	$ 7,322	$ (15,618)	$ (10,413)	$ 2,628	$ (11,649)	$ 60,403
Net income (loss) from continuing operations									$ (25,740)	$ (12,080)	$ 10,170
Increase (decrease) in net income per common share (in dollars per share)	$ 0.49	$ (0.81)	$ 0.02	$ (0.11)	$ (0.29)	$ 0.17	$ 0.38	$ (0.20)	$ (0.41)	$ 0.06	$ 0.85
Net loss after taxes	$ 13,155	$ (21,957)	$ 461	$ (2,868)	$ (7,493)	$ 4,498	$ 10,144	$ (5,414)	$ (11,209)	$ 1,735	$ 22,885
Change in estimated total costs | Adjustment
Summary Of quarterly results of operations
Increase (decrease) in operating income	(1,600)				2,300				5,700	(900)	(13,800)
Net income (loss) from continuing operations	$ (1,100)				$ 1,500				$ 3,200	$ (500)	$ (7,500)
Increase (decrease) in net income per common share (in dollars per share)	$ (0.04)				$ 0.06				$ 0.12	$ (0.02)	$ (0.28)