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Revenue Recognition (Tables)
 9 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Summary of the Effects of Adoption of ASC 606
The following table presents how the adoption of ASC 606 affected certain line items in our consolidated statement of cash flows for the nine months ended June 30, 2019:
 
Recognition Under Previous Guidance
 
Impact of the Adoption of ASC 606
 
Recognition Under ASC 606
 
(in thousands)
Cash flows from operating activities:
 
 
 
 
 
Net income
$
146,749

 
$
478

 
$
147,227

Accounts receivable and contract assets
(54,018
)
 
12,719

 
(41,299
)
Contract liabilities
11,433

 
(13,379
)
 
(1,946
)
Income taxes receivable/payable
(5,095
)
 
182

 
(4,913
)
Net cash provided by operating activities
113,385

 
—

 
113,385


The following table presents how the adoption of ASC 606 affected certain line items in our consolidated statements of income for the three and nine months ended June 30, 2019:
 
Three Months Ended
 
Nine Months Ended
 
Recognition Under Previous Guidance
 
Impact of the Adoption of ASC 606
 
Recognition Under ASC 606
 
Recognition Under Previous Guidance
 
Impact of the Adoption of ASC 606
 
Recognition Under ASC 606
 
(in thousands)
Revenue
$
826,292

 
$
(499
)
 
$
825,793

 
$
2,265,186

 
$
660

 
$
2,265,846

Income from operations
65,340

 
(499
)
 
64,841

 
167,437

 
660

 
168,097

Income tax expense
(12,142
)
 
98

 
(12,044
)
 
(11,081
)
 
(182
)
 
(11,263
)
Net income attributable to Tetra Tech
49,634

 
(401
)
 
49,233

 
146,663

 
478

 
147,141


The following table presents how the adoption of ASC 606 affected certain line items in our consolidated balance sheet as of June 30, 2019:
 
Recognition Under Previous Guidance
 
Impact of the Adoption of ASC 606
 
Recognition Under ASC 606
 
(in thousands)
Assets
 
 
 
 
 
Accounts receivable - net
$
737,107

 
$
(8,108
)
 
$
728,999

Contract assets (1)
147,947

 
(2,275
)
 
145,672

Deferred tax assets
29,452

 
1,120

 
30,572

 
 
 
 
 
 
Liabilities and equity
 
 
 
 
 
Contract liabilities (2)
$
154,704

 
$
(7,155
)
 
$
147,549

Income taxes payable
(126
)
 
182

 
56

 
 
 
 
 
 
Equity (3)
 
 
 
 
 
Retained earnings
$
1,070,140

 
$
(2,289
)
 
$
1,067,851

 
 
 
 
 
 
(1) Previously included in "Account receivable - net".
(2) Previously presented as "Billings in excess of costs on uncompleted contracts".
(3) Includes $2.8 million of cumulative catch-up adjustment to retained earnings on October 1, 2018 upon adoption of ASC 606.
Summary of Net Contract Liabilities/Assets Net contract liabilities/assets consisted of the following:
 
Balance at
 
June 30,
2019
 
September 30, 2018
 
(in thousands)
Contract assets
$
145,672

 
$
142,882

Contract liabilities
147,549

 
143,270

Net contract liabilities
$
(1,877
)
 
$
(388
)
Reconciliation of Disaggregation of Revenue to Reportable Segments The following tables provide information about disaggregated revenue and a reconciliation of the disaggregated revenue:

 
Three Months Ended
 
Nine Months Ended
 
June 30,
2019
 
July 1,
2018
 
June 30,
2019
 
July 1,
2018
 
 
Client Sector
 

 
 

 
 
 
 
U.S. state and local government
$
172,148

 
$
103,169

 
$
425,296

 
$
359,828

U.S. federal government (1)
245,723

 
245,982

 
686,979

 
719,181

U.S. commercial
194,980

 
208,507

 
533,738

 
595,691

International (2)
212,942

 
207,137

 
619,833

 
550,105

Total
$
825,793

 
$
764,795

 
$
2,265,846

 
$
2,224,805

 
 
 
 
 
 
 
 
(1)     Includes revenue generated under U.S. federal government contracts performed outside the United States.
(2)     Includes revenue generated from foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients.

Other than the U.S. federal government, no single client accounted for more than 10% of our revenue for the three and nine months ended June 30, 2019 and July 1, 2018.
 
Three Months Ended
 
Nine Months Ended
 
June 30,
2019
 
July 1,
2018
 
June 30,
2019
 
July 1,
2018
 
(in thousands)
Contract Type
 
 
 
 
 
 
 
Fixed-price
$
271,287

 
$
270,565

 
$
760,051

 
$
730,863

Time-and-materials
419,564

 
351,436

 
1,101,728

 
1,061,798

Cost-plus
134,942

 
142,794

 
404,067

 
432,144

Total
$
825,793

 
$
764,795

 
$
2,265,846

 
$
2,224,805
Remaining Performance Obligation, Expected Timing
We expect to satisfy our RUPOs as of June 30, 2019 over the following periods:
 
Amount
 
(in thousands)
Within 12 months
$
1,785,894

Beyond
1,035,738

Total
$
2,821,632