COVID-19 Update	9 Months Ended
Jun. 30, 2020
COVID-19 Update
COVID-19 Update	Note 2 — COVID-19 Update In March 2020, the novel coronavirus disease (“COVID-19”) was declared a pandemic by the World Health Organization. The outbreak has resulted in governments around the world implementing increasingly stringent measures to help control the spread of the virus, including quarantines, “shelter in place” and “stay at home” orders, travel restrictions, business curtailments, school closures, and other measures. In addition, governments and central banks in several parts of the world have enacted fiscal and monetary stimulus measures to counteract the impacts of COVID-19. Cubic’s businesses have been deemed essential in the locations in which we operate around the world. As such, our priorities are to continue providing our essential products and services to customers while focusing on protecting the health and well-being of our employees. Our condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that while our operating results in the second and third quarter of fiscal 2020 were impacted by the pandemic, no asset impairments have been recognized. In light of the risks presented by the current environment, we have taken a number of steps to strengthen liquidity and manage cash flow. These steps include our long-term debt restructuring that closed in the second quarter of fiscal 2020 and which included an increase in limits under our revolving credit facility, as further described in Note 9. We have also been negotiating more favorable payment terms with our customers, suppliers and subcontractors and utilized governmental stimulus benefits, including those related to tax. In addition, we have modified executive and other employee compensation and have planned reductions in capital expenditures and other discretionary expenditures.

COVID-19 Update

9 Months Ended

Jun. 30, 2020

Note 2 — COVID-19 Update

In March 2020, the novel coronavirus disease (“COVID-19”) was declared a pandemic by the World Health Organization. The outbreak has resulted in governments around the world implementing increasingly stringent measures to help control the spread of the virus, including quarantines, “shelter in place” and “stay at home” orders, travel restrictions, business curtailments, school closures, and other measures. In addition, governments and central banks in several parts of the world have enacted fiscal and monetary stimulus measures to counteract the impacts of COVID-19.

Cubic’s businesses have been deemed essential in the locations in which we operate around the world. As such, our priorities are to continue providing our essential products and services to customers while focusing on protecting the health and well-being of our employees.

Our condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that while our operating results in the second and third quarter of fiscal 2020 were impacted by the pandemic, no asset impairments have been recognized.

In light of the risks presented by the current environment, we have taken a number of steps to strengthen liquidity and manage cash flow. These steps include our long-term debt restructuring that closed in the second quarter of fiscal 2020 and which included an increase in limits under our revolving credit facility, as further described in Note 9. We have also been negotiating more favorable payment terms with our customers, suppliers and subcontractors and utilized governmental stimulus benefits, including those related to tax. In addition, we have modified executive and other employee compensation and have planned reductions in capital expenditures and other discretionary expenditures.