Segment Information (Tables)

6 Months Ended

Mar. 31, 2020

Segment Information

Schedule of business segment financial data

Business segment financial data is as follows (in millions):

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2020		2019		2020		2019
Sales:
Cubic Transportation Systems	$	197.6	$	200.7	$	386.2	$	382.5
Cubic Mission Solutions		39.5		61.9		98.2		108.3
Cubic Global Defense Systems		84.4		74.7		165.9		151.8
Total sales	$	321.5	$	337.3	$	650.3	$	642.6
Operating income (loss):
Cubic Transportation Systems	$	12.6	$	8.8	$	26.9	$	19.8
Cubic Mission Solutions		(31.4)		(8.5)		(46.3)		(13.4)
Cubic Global Defense Systems		5.7		5.2		12.0		8.1
Unallocated corporate expenses		(16.8)		(12.0)		(29.0)		(21.6)
Total operating income (loss)	$	(29.9)	$	(6.5)	$	(36.4)	$	(7.1)
Depreciation and amortization:
Cubic Transportation Systems	$	7.4	$	9.5	$	14.5	$	17.2
Cubic Mission Solutions		13.5		5.8		21.0		11.2
Cubic Global Defense Systems		1.6		1.5		3.3		3.7
Corporate		0.9		0.8		1.6		1.5
Total depreciation and amortization	$	23.4	$	17.6	$	40.4	$	33.6

Schedule of Disaggregation of Total Net Sales

Disaggregation of Total Net Sales: We disaggregate our sales from contracts with customers by end customer, contract type, deliverable type and revenue recognition method for each of our segments, as we believe these factors can affect the nature, amount, timing and uncertainty of our revenue and cash flows.

Sales by Geographic Region (in millions):

	Three months ended March 31, 2020								Six months ended March 31, 2020
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
United States	$	111.0	$	38.1	$	23.3	$	172.4	$	207.7	$	94.3	$	46.1	$	348.1
United Kingdom		49.9		0.5		4.6		55.0		97.5		0.7		8.9		107.1
Australia		30.1		0.4		6.8		37.3		66.5		1.7		13.3		81.5
Far East/Middle East		0.6		0.1		35.3		36.0		1.9		0.5		71.6		74.0
Other		6.0		0.4		14.4		20.8		12.6		1.0		26.0		39.6
Total sales	$	197.6	$	39.5	$	84.4	$	321.5	$	386.2	$	98.2	$	165.9	$	650.3

	Three months ended March 31, 2019								Six months ended March 31, 2019
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
United States	$	106.9	$	60.5	$	34.0	$	201.4	$	198.2	$	106.0	$	69.7	$	373.9
United Kingdom		53.2		0.7		4.3		58.2		104.1		1.1		8.6		113.8
Australia		30.4		0.1		7.1		37.6		60.2		0.2		12.7		73.1
Far East/Middle East		3.5		0.2		12.3		16.0		7.9		0.6		30.7		39.2
Other		6.7		0.4		17.0		24.1		12.1		0.4		30.1		42.6
Total sales	$	200.7	$	61.9	$	74.7	$	337.3	$	382.5	$	108.3	$	151.8	$	642.6

Sales by End Customer: We are the prime contractor for the vast majority of our sales. The table below presents total net sales disaggregated by end customer (in millions):

	Three months ended March 31, 2020								Six months ended March 31, 2020
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
U.S. Federal Government and State and Local Municipalities	$	104.0	$	35.0	$	26.2	$	165.2	$	197.5	$	90.2	$	53.0	$	340.7
Other		93.6		4.5		58.2		156.3		188.7		8.0		112.9		309.6
Total sales	$	197.6	$	39.5	$	84.4	$	321.5	$	386.2	$	98.2	$	165.9	$	650.3

	Three months ended March 31, 2019								Six months ended March 31, 2019
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
U.S. Federal Government and State and Local Municipalities	$	96.7	$	58.1	$	37.6	$	192.4	$	187.5	$	103.9	$	70.0	$	361.4
Other		104.0		3.8		37.1		144.9		195.0		4.4		81.8		281.2
Total sales	$	200.7	$	61.9	$	74.7	$	337.3	$	382.5	$	108.3	$	151.8	$	642.6

Sales by Contract Type: Substantially all of our contracts are fixed-price type contracts. Sales included in “Other” contract types represent cost-plus and time-and-material type contracts.

On a fixed-price type contract, we agree to perform the contractual statement of work for a predetermined sales price. Certain of our fixed-price contracts include compensation for bonuses, transactional variable based fees or other similar provisions. On a cost-plus type contract, we are paid our allowable incurred costs plus a profit which can be fixed or variable depending on the applicable contract’s fee arrangement up to funding levels that are predetermined by the customer. On a time-and-material type contract, we are paid on the basis of direct labor hours expended at specified fixed-price hourly rates (that include wages, overhead, allowable general and administrative expenses and profit) and materials at cost. The table below presents total net sales disaggregated by contract type (in millions):

	Three months ended March 31, 2020								Six months ended March 31, 2020
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
Fixed Price	$	194.8	$	31.7	$	75.6	$	302.1	$	379.3	$	82.2	$	149.9	$	611.4
Other		2.8		7.8		8.8		19.4		6.9		16.0		16.0		38.9
Total sales	$	197.6	$	39.5	$	84.4	$	321.5	$	386.2	$	98.2	$	165.9	$	650.3

	Three months ended March 31, 2019								Six months ended March 31, 2019
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
Fixed Price	$	197.5	$	60.6	$	68.2	$	326.3	$	375.7	$	106.4	$	139.8	$	621.9
Other		3.2		1.3		6.5		11.0		6.8		1.9		12.0		20.7
Total sales	$	200.7	$	61.9	$	74.7	$	337.3	$	382.5	$	108.3	$	151.8	$	642.6

Sales by Deliverable Type: The table below presents total net sales disaggregated by the type of deliverable, which is determined by us at the performance obligation level (in millions):

	Three months ended March 31, 2020								Six months ended March 31, 2020
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
Product	$	99.7	$	30.7	$	57.1	$	187.5	$	193.1	$	81.9	$	113.1	$	388.1
Service		97.9		8.8		27.3		134.0		193.1		16.3		52.8		262.2
Total sales	$	197.6	$	39.5	$	84.4	$	321.5	$	386.2	$	98.2	$	165.9	$	650.3

	Three months ended March 31, 2019								Six months ended March 31, 2019
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
Product	$	113.8	$	56.1	$	52.8	$	222.7	$	205.8	$	96.7	$	102.5	$	405.0
Service		86.9		5.8		21.9		114.6		176.7		11.6		49.3		237.6
Total sales	$	200.7	$	61.9	$	74.7	$	337.3	$	382.5	$	108.3	$	151.8	$	642.6

Revenue Recognition Method: Sales recognized at a point in time are typically for standard goods with a short production cycle and are recognized when the customer obtains control, which is generally upon delivery and acceptance. Sales for services and for products with a long production cycle, which often include significant customization and development, are recognized over time. The table below presents total net sales disaggregated based on the revenue recognition method applied (in millions):

	Three months ended March 31, 2020								Six months ended March 31, 2020
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
Point in Time	$	28.1	$	14.1	$	0.9	$	43.1	$	45.8	$	52.5	$	1.9	$	100.2
Over Time		169.5		25.4		83.5		278.4		340.4		45.7		164.0		550.1
Total sales	$	197.6	$	39.5	$	84.4	$	321.5	$	386.2	$	98.2	$	165.9	$	650.3

	Three months ended March 31, 2019								Six months ended March 31, 2019
	CTS		CMS		CGD		Total		CTS		CMS		CGD		Total
Point in Time	$	21.8	$	58.8	$	1.4	$	82.0	$	38.5	$	93.2	$	1.9	$	133.6
Over Time		178.9		3.1		73.3		255.3		344.0		15.1		149.9		509.0
Total sales	$	200.7	$	61.9	$	74.7	$	337.3	$	382.5	$	108.3	$	151.8	$	642.6