Maximus (MMS) 10-Q 5 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 01, 2016
Document and Entity Information
Entity Registrant Name	MAXIMUS INC
Entity Central Index Key	1,032,220
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		64,894,171
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenue	$ 556,722	$ 467,043
Cost of revenue	446,507	347,776
Gross profit	110,215	119,267
Selling, general and administrative expenses	64,234	51,962
Amortization of intangible assets	3,149	1,474
Acquisition-related expenses	46	600
Operating income	42,786	65,231
Interest expense	989	0
Other income, net	1,131	901
Income before income taxes	42,928	66,132
Provision for income taxes	16,046	23,782
Net income	26,882	42,350
Income attributable to noncontrolling interests	(273)	(489)
Net income attributable to MAXIMUS	$ 26,609	$ 41,861
Basic earnings per share attributable to MAXIMUS	$ 0.40	$ 0.63
Diluted earnings per share attributable to MAXIMUS	0.40	0.63
Diluted earnings per share attributable to MAXIMUS	$ 0.045	$ 0.045
Weighted average shares outstanding:
Basic weighted average shares outstanding (in shares)	65,954	65,935
Diluted weighted average shares outstanding (in shares)	66,288	66,898

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 26,882	$ 42,350
Foreign currency translation adjustments	(2,159)	(10,480)
Interest rate hedge, net of income taxes of $25 and $—	37	0
Comprehensive income	24,760	31,870
Comprehensive income attributable to noncontrolling interests	(273)	(489)
Comprehensive income attributable to MAXIMUS	$ 24,487	$ 31,381

CONSOLIDATED STATEMENTS OF COM4

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)
Statement of Comprehensive Income [Abstract]
Interest rate hedge, tax	$ 25

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 50,958	$ 74,672
Accounts receivable — billed and billable, net of reserves of $4,555 and $3,385	425,159	396,177
Accounts receivable — unbilled	32,799	30,929
Prepaid expenses and other current assets	49,201	60,129
Total current assets	558,117	561,907
Property and equipment, net	138,131	137,830
Capitalized software, net	30,740	32,483
Goodwill	387,118	376,302
Intangible assets, net	99,600	102,358
Deferred contract costs, net	18,123	19,126
Deferred compensation plan assets	21,187	19,310
Deferred income taxes	11,077	11,058
Other assets	11,442	11,184
Total assets	1,275,535	1,271,558
Current liabilities:
Accounts payable and accrued liabilities	161,905	155,411
Accrued compensation and benefits	67,051	99,700
Deferred revenue	76,876	77,642
Income taxes payable	3,001	11,709
Long-term debt, current portion	340	356
Other liabilities	10,103	11,562
Total current liabilities	319,276	356,380
Deferred revenue, less current portion	50,714	52,954
Deferred income taxes	15,531	6,546
Long-term debt	244,955	210,618
Deferred compensation plan liabilities, less current portion	22,986	20,635
Other liabilities	9,331	8,726
Total liabilities	662,793	655,859
Commitments and contingencies	0	0
Shareholders' equity:
Common stock, no par value; 100,000 shares authorized; 64,894 and 65,437 shares issued and outstanding at December 31, 2015 and September 30, 2015, at stated amount, respectively	450,572	446,132
Accumulated other comprehensive income/(loss)	(24,487)	(22,365)
Retained earnings	183,063	188,611
Total MAXIMUS shareholders’ equity	609,148	612,378
Noncontrolling interests	3,594	3,321
Total equity	612,742	615,699
Total liabilities and equity	$ 1,275,535	$ 1,271,558

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts,receivable current	$ 4,555	$ 3,385
Common stock, shares authorized	100,000	100,000
Common stock, shares outstanding	64,894	65,437
Common stock, shares issued	64,894	65,437

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 26,882	$ 42,350
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and capitalized software	12,947	10,967
Amortization of intangible assets	3,149	1,474
Deferred income taxes	(499)	(925)
Stock compensation expense	4,332	3,966
Changes in assets and liabilities:
Accounts receivable — billed and billable	(29,747)	(4,242)
Accounts receivable — unbilled	(1,853)	(4,314)
Prepaid expenses and other current assets	5,316	(221)
Deferred contract costs	764	(3,454)
Accounts payable and accrued liabilities	8,188	13,441
Accrued compensation and benefits	(21,383)	(23,901)
Deferred revenue	(2,886)	3,610
Income taxes	(3,043)	18,836
Other assets and liabilities	(801)	(993)
Cash provided by operating activities	1,366	56,594
Cash flows from investing activities:
Purchases of property and equipment	(9,693)	(12,754)
Capitalized software costs	(992)	(1,356)
Acquisition of businesses, net of cash acquired	(2,606)	0
Proceeds from note receivable	84	160
Cash used in investing activities	(13,207)	(13,950)
Cash flows from financing activities:
Cash dividends paid	(2,941)	(2,962)
Repurchases of common stock	(31,138)	(32,616)
Tax withholding related to RSU vesting	(11,553)	(12,337)
Borrowings under credit facility	47,070	0
Repayment of credit facility and other long-term debt	(12,721)	(39)
Cash used in financing activities	(11,283)	(47,954)
Effect of exchange rate changes on cash and cash equivalents	(590)	(3,606)
Net decrease in cash and cash equivalents	(23,714)	(8,916)
Cash and cash equivalents, beginning of period	74,672	158,112
Cash and cash equivalents, end of period	$ 50,958	$ 149,196

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Income/(Loss)	Retained Earnings	Noncontrolling Interest
Balance at Sep. 30, 2014	$ 556,185	$ 429,857	$ 230	$ 125,875	$ 223
Balance (in shares) at Sep. 30, 2014		66,613,000
Increase (Decrease) in Shareholders' Equity
Net Income	41,861			41,861
Income attributable to noncontrolling interests	(489)				489
Net income including noncontrolling interest	42,350
Foreign currency translation	(10,480)		(10,480)
Interest rate hedge, net of income taxes of $25 and $—	0
Cash dividends	(2,962)			(2,962)
Dividends on RSUs		$ 99		(99)
Repurchases of common stock	(30,618)			(30,618)
Repurchases of common stock (in shares)		(753,000)
Stock compensation expense	3,966	$ 3,966
Balance at Dec. 31, 2014	558,441	$ 433,922	(10,250)	134,057	712
Balance (in shares) at Dec. 31, 2014		65,860,000
Balance at Sep. 30, 2015	$ 615,699	$ 446,132	(22,365)	188,611	3,321
Balance (in shares) at Sep. 30, 2015	65,437,000	65,437,000
Increase (Decrease) in Shareholders' Equity
Net Income	$ 26,609			26,609
Income attributable to noncontrolling interests	(273)				273
Net income including noncontrolling interest	26,882
Foreign currency translation	(2,159)		(2,159)
Interest rate hedge, net of income taxes of $25 and $—	37		37
Cash dividends	(2,941)			(2,941)
Dividends on RSUs		$ 77		(77)
Repurchases of common stock	(29,139)
Repurchases of common stock (in shares)		(543,000)
Stock compensation expense	4,332	$ 4,332
Tax withholding related to RSU vesting	31	31
Balance at Dec. 31, 2015	$ 612,742	$ 450,572	$ (24,487)	$ 183,063	$ 3,594
Balance (in shares) at Dec. 31, 2015	64,894,000	64,894,000

Organization and Basis of Prese

Organization and Basis of Presentation	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended December 31, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2015 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. Certain reclassifications have been made from prior fiscal year to conform with current presentation. In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes . This standard reduces the complexity of deferred taxation disclosure by showing deferred income tax balances as noncurrent. We have adopted this standard and have updated our September 30, 2015 balance sheet as if we had adopted this standard at that time. As previously disclosed, our balance sheet held $19 million of current deferred tax assets, $0.7 million of noncurrent deferred tax assets included in "Other Assets" and $15.2 million of noncurrent deferred tax liabilities. These balances have been reclassified to record $11.1 million and $6.5 million of noncurrent deferred tax assets and liabilities, respectively. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenue and expenses. On an ongoing basis, we evaluate our estimates including those related to revenue recognition and cost estimation on certain contracts, the realizability of goodwill, and amounts related to income taxes, certain accrued liabilities and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. These financial statements should be read in conjunction with the consolidated audited financial statements and the notes thereto at September 30, 2015 and 2014 and for each of the three years ended September 30, 2015 , included in our Annual Report on Form 10-K for the year ended September 30, 2015 which was filed with the Securities and Exchange Commission on November 16, 2015 .

Segment Information

Segment Information	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information The table below provides certain financial information for each of our business segments. Three Months Ended December 31, (Amounts in thousands) 2015 % (1) 2014 % (1) Revenue: Health Services $ 291,903 100 % $ 243,570 100 % U.S. Federal Services 145,285 100 % 107,729 100 % Human Services 119,534 100 % 115,744 100 % Total $ 556,722 100 % $ 467,043 100 % Gross profit: Health Services $ 51,972 17.8 % $ 59,847 24.6 % U.S. Federal Services 28,238 19.4 % 25,568 23.7 % Human Services 30,005 25.1 % 33,852 29.2 % Total $ 110,215 19.8 % $ 119,267 25.5 % Selling, general and administrative expense: Health Services $ 25,164 8.6 % $ 22,007 9.0 % U.S. Federal Services 17,522 12.1 % 12,250 11.4 % Human Services 20,898 17.5 % 17,700 15.3 % Other 650 NM 5 NM Total $ 64,234 11.5 % $ 51,962 11.1 % Operating income: Health Services $ 26,808 9.2 % $ 37,840 15.5 % U.S. Federal Services 10,716 7.4 % 13,318 12.4 % Human Services 9,107 7.6 % 16,152 14.0 % Amortization of intangible assets (3,149 ) NM (1,474 ) NM Acquisition-related expenses (2) (46 ) NM (600 ) NM Other (650 ) NM (5 ) NM Total $ 42,786 7.7 % $ 65,231 14.0 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) Acquisition-related expenses are costs directly incurred from the purchase of Assessments Australia in the first quarter of fiscal year 2016 and the purchase of Acentia in fiscal year 2015, as well as other transaction-related activity.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The weighted average number of shares outstanding used to compute earnings per share was as follows: Three Months Ended December 31, (Amounts in thousands) 2015 2014 Basic weighted average shares outstanding 65,954 65,935 Dilutive effect of employee stock options and unvested RSUs 334 963 Denominator for diluted earnings per share 66,288 66,898 For the three months ended December 31, 2015 and 2014 , 14,000 and zero unvested restricted stock units (RSUs), respectively, have been excluded from the calculation of diluted earnings per share as the effect of including them would have been anti-dilutive.

Debt

Debt	3 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Debt	Debt On March 9, 2015, we entered into an amendment to our unsecured credit agreement (the “Credit Agreement”). The Credit Agreement, as amended, provides for a revolving line of credit up to $400 million that may be used for revolving loans, swingline loans (subject to a sublimit of $5 million ), and to request letters of credit, subject to a sublimit of $30 million . The line of credit is available for general corporate purposes, including working capital, capital expenditures and acquisitions. The arrangement will terminate on March 9, 2020, at which time all outstanding borrowings must be repaid. On April 1, 2015, we borrowed $225 million under the Credit Agreement in order to fund our acquisition of Acentia. Additional borrowings and repayments were subsequently made to fund working capital and capital expenditure requirements. The Credit Agreement permits us to make borrowings in currencies other than the United States Dollar. At December 31, 2015 , we have U.S. Dollar borrowings of $232.3 million , Canadian Dollar borrowings of $4.5 million ( 6.3 million Canadian Dollars) and Australian Dollar borrowings of $7.3 million ( 10.0 million Australian Dollars). In addition to borrowings under the Credit Facility, we have an outstanding loan of $0.8 million ( 1.1 million Canadian Dollars) with the Atlantic Innovation Fund of Canada. There is no interest charge on this loan. The Atlantic Innovation Fund loan is repayable over 26 remaining quarterly installments. At December 31, 2015 , we held three letters of credit under the Credit Agreement totaling $0.7 million . Each of these letters of credit may be called by vendors in the event that the Company defaults under the terms of a contract, the probability of which we believe is remote. In addition, two letters of credit totaling $3.0 million , secured with restricted cash balances, are held with another financial institution to cover similar obligations to customers. The Credit Agreement requires us to comply with certain financial covenants and other covenants including a maximum total leverage ratio and a minimum fixed charge coverage ratio. We were in compliance with all covenants as of December 31, 2015 . Our obligations under the Credit Agreement are guaranteed by material domestic subsidiaries of the Company. The Credit Facility is currently unsecured. In the event that our total leverage ratio, as defined in the Credit Agreement, exceeds 2.5 :1.0, the Credit Agreement will become secured by the assets of the parent company and certain of its subsidiaries. At December 31, 2015 , our total leverage ratio was less than 1.0 :1.0. During the three months ended December 31, 2015 , we made interest payments of $0.8 million .

Business combinations

Business combinations	3 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Business combinations	Business combinations Assessments Australia On December 15, 2015, MAXIMUS acquired 100% of the share capital of three companies doing business as "Assessments Australia" for estimated consideration of $2.7 million . We acquired Assessments Australia to expand our service offerings within Australia. The consideration is comprised of $2.6 million in cash and contingent consideration with an estimated fair value of $0.1 million . The contingent consideration relates to a payment of $0.6 million to the sellers of Assessments Australia if a particular contract is tendered and won by MAXIMUS prior to December 2017. We have performed a probability weighted assessment of this payment. Future changes in our assessment of this liability will be recorded through the Statement of Operations. This business has been integrated into our Human Services Segment. Management has estimated goodwill and intangible assets acquired as $2.0 million and $0.9 million , respectively, but the allocation of the fair value of the consideration has not been completed at this time and the purchase price is still subject to adjustments related to working capital. Acentia On April 1, 2015 (the “acquisition date”), we acquired 100% of the ownership interests of Acentia, LLC (“Acentia”) for cash consideration of $293.5 million . Acentia provides system modernization, software development, program management and other information technology services and solutions to the U.S. Federal Government. We acquired Acentia, among other reasons, to expand our ability to provide complementary business services and offerings across government markets. The acquired assets and liabilities have been integrated into our U.S. Federal Services Segment. We have completed the process of allocating the acquisition price to the fair value of the assets and liabilities of Acentia at the acquisition date, with the exception of balances relating to current and deferred taxes. Our provisional allocation of fair value updated through December 31, 2015 is shown below. (Amounts in thousands) Updated through September 30, 2015 Adjustments Updated through December 31, 2015 Estimated purchase consideration, net of cash acquired $ 293,504 $ — $ 293,504 Billed and unbilled receivables $ 35,333 $ 35,333 Other assets 5,050 (808 ) 4,242 Property and equipment 2,140 2,140 Intangible assets — customer relationships 69,900 69,900 Total identifiable assets acquired 112,423 (808 ) 111,615 Accounts payable and other liabilities 32,426 32,426 Deferred revenue 251 251 Capital lease obligations 567 567 Deferred tax liabilities — 9,167 9,167 Total liabilities assumed 33,244 9,167 42,411 Net identifiable assets acquired 79,179 (9,975 ) 69,204 Goodwill 214,325 9,975 224,300 Net assets acquired $ 293,504 $ — $ 293,504 The excess of the acquisition date consideration over the fair value of the net assets acquired was recorded as goodwill. We consider the goodwill to represent the value of the assembled workforce of Acentia, as well as the enhanced knowledge and capabilities resulting from this business combination. Approximately $175.0 million of the goodwill balance is anticipated to be deductible for tax purposes. The intangible assets acquired represent customer relationships. These will be amortized on a straight-line basis over 14 years .

Supplemental disclosures

Supplemental disclosures	3 Months Ended
	Dec. 31, 2015
Supplemental Cash Flow Elements [Abstract]
Supplemental disclosures	Supplemental disclosures During the three months ended December 31, 2015 and 2014 , we made income tax payments of $19.2 million and $5.9 million , respectively. At December 31, 2015 , we held cash and cash equivalents of $51.0 million . Approximately $45.1 million of these funds are denominated in foreign currencies and held in jurisdictions outside the United States and we have no requirement or intent at this time to transfer the funds to the United States. Declines in the value of foreign currencies with respect to the United States Dollar, notably the Australian Dollar and British Pound, resulted in a decline in net assets of $2.2 million in the three months ended December 31, 2015 , including a $0.6 million decline in our cash and cash equivalents balance and a $1.2 million decline in our goodwill balance. These declines were recorded as losses in our Statement of Comprehensive Income. Under a resolution adopted in August 2015, the Board of Directors authorized the repurchase, at management's discretion, of up to an aggregate of $200 million of our common stock. This resolution superseded similar authorizations from November 2011 and June 2014. The resolution also authorizes the use of option exercise proceeds for the repurchase of our common stock. During the three months ended December 31, 2015 and 2014 , we repurchased 0.5 million and 0.8 million common shares at a cost of $29.1 million and $30.6 million , respectively. At December 31, 2015 , $139.4 million remained available for future stock repurchases. Our deferred compensation plan assets include $10.3 million invested in mutual funds that have quoted prices in active markets. These assets are recorded at fair value with changes in fair value being recorded in the Statement of Operations. In November 2015, we granted 0.4 million RSUs to our employees. These awards will vest ratably over five years. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other amounts included within current assets and liabilities that meet the definition of a financial instrument are shown at values equivalent to fair value due to the short-term nature of these items. Our accounts receivable balance includes both amounts invoiced and those where amounts are ready to be invoiced and the funds are collectible within standard invoice terms.

Revenue recognition

Revenue recognition	3 Months Ended
	Dec. 31, 2015
Revenue Recognition [Abstract]
Revenue recognition	Revenue recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This new standard will change the manner in which we evaluate revenue recognition for all contracts with customers, although the effect of the changes on revenue recognition will vary from contract to contract. We would adopt this standard during our 2019 fiscal year. The standard permits a retrospective or cumulative effect transition method. We anticipate that we will adopt the new standard using the retrospective method. We are continuing to evaluate the likely effects on our business.

Dividend

Dividend	3 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Event	Dividend On January 8, 2016 , our Board of Directors declared a quarterly cash dividend of $0.045 for each share of our common stock outstanding. The dividend is payable on February 29, 2016 to shareholders of record on February 16, 2016 .

Organization and Basis of Pre17

Organization and Basis of Presentation (Policies)	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three months ended December 31, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2015 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements.
Reclassification	Certain reclassifications have been made from prior fiscal year to conform with current presentation. In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes . This standard reduces the complexity of deferred taxation disclosure by showing deferred income tax balances as noncurrent. We have adopted this standard and have updated our September 30, 2015 balance sheet as if we had adopted this standard at that tim
Use of Estimates	The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenue and expenses. On an ongoing basis, we evaluate our estimates including those related to revenue recognition and cost estimation on certain contracts, the realizability of goodwill, and amounts related to income taxes, certain accrued liabilities and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of financial information for each of the Company's business segments	The table below provides certain financial information for each of our business segments. Three Months Ended December 31, (Amounts in thousands) 2015 % (1) 2014 % (1) Revenue: Health Services $ 291,903 100 % $ 243,570 100 % U.S. Federal Services 145,285 100 % 107,729 100 % Human Services 119,534 100 % 115,744 100 % Total $ 556,722 100 % $ 467,043 100 % Gross profit: Health Services $ 51,972 17.8 % $ 59,847 24.6 % U.S. Federal Services 28,238 19.4 % 25,568 23.7 % Human Services 30,005 25.1 % 33,852 29.2 % Total $ 110,215 19.8 % $ 119,267 25.5 % Selling, general and administrative expense: Health Services $ 25,164 8.6 % $ 22,007 9.0 % U.S. Federal Services 17,522 12.1 % 12,250 11.4 % Human Services 20,898 17.5 % 17,700 15.3 % Other 650 NM 5 NM Total $ 64,234 11.5 % $ 51,962 11.1 % Operating income: Health Services $ 26,808 9.2 % $ 37,840 15.5 % U.S. Federal Services 10,716 7.4 % 13,318 12.4 % Human Services 9,107 7.6 % 16,152 14.0 % Amortization of intangible assets (3,149 ) NM (1,474 ) NM Acquisition-related expenses (2) (46 ) NM (600 ) NM Other (650 ) NM (5 ) NM Total $ 42,786 7.7 % $ 65,231 14.0 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) Acquisition-related expenses are costs directly incurred from the purchase of Assessments Australia in the first quarter of fiscal year 2016 and the purchase of Acentia in fiscal year 2015

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of the components of basic and diluted earnings per share	The weighted average number of shares outstanding used to compute earnings per share was as follows: Three Months Ended December 31, (Amounts in thousands) 2015 2014 Basic weighted average shares outstanding 65,954 65,935 Dilutive effect of employee stock options and unvested RSUs 334 963 Denominator for diluted earnings per share 66,288 66,898

Business combinations (Tables)

Business combinations (Tables)	3 Months Ended
	Dec. 31, 2015
Acentia LLC
Business Acquisition [Line Items]
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date	We have completed the process of allocating the acquisition price to the fair value of the assets and liabilities of Acentia at the acquisition date, with the exception of balances relating to current and deferred taxes. Our provisional allocation of fair value updated through December 31, 2015 is shown below. (Amounts in thousands) Updated through September 30, 2015 Adjustments Updated through December 31, 2015 Estimated purchase consideration, net of cash acquired $ 293,504 $ — $ 293,504 Billed and unbilled receivables $ 35,333 $ 35,333 Other assets 5,050 (808 ) 4,242 Property and equipment 2,140 2,140 Intangible assets — customer relationships 69,900 69,900 Total identifiable assets acquired 112,423 (808 ) 111,615 Accounts payable and other liabilities 32,426 32,426 Deferred revenue 251 251 Capital lease obligations 567 567 Deferred tax liabilities — 9,167 9,167 Total liabilities assumed 33,244 9,167 42,411 Net identifiable assets acquired 79,179 (9,975 ) 69,204 Goodwill 214,325 9,975 224,300 Net assets acquired $ 293,504 $ — $ 293,504

Organization and Basis of Pre21

Organization and Basis of Presentation (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Deferred tax liability, noncurrent	$ 15,531	$ 6,546
Deferred tax assets, noncurrent	$ 11,077	11,058
Previously Reported
New Accounting Pronouncement, Early Adoption [Line Items]
Deferred tax asset, current		19,000
Deferred tax liability, noncurrent		15,200
Deferred tax assets, noncurrent		$ 700

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue:
Revenue	$ 556,722	$ 467,043
Revenue (as a percent)	100.00%	100.00%
Gross profit:
Gross profit	$ 110,215	$ 119,267
Gross profit (as a percent)	19.80%	25.50%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 64,234	$ 51,962
Selling, general, and administrative expense (as a percent)	11.50%	11.10%
Operating income:
Amortization of intangible assets	$ (3,149)	$ (1,474)
Acquisition-related expenses	(46)	(600)
Operating income	$ 42,786	$ 65,231
Operating income (as a percent)	7.70%	14.00%
Segment Reconciling Items
Operating income:
Amortization of intangible assets	$ (3,149)	$ (1,474)
Acquisition-related expenses	(46)	(600)
Other
Selling, general and administrative expense:
Selling, general and administrative expenses	650	5
Operating income:
Other	(650)	(5)
Health Services | Operating Segments
Revenue:
Revenue	$ 291,903	$ 243,570
Revenue (as a percent)	100.00%	100.00%
Gross profit:
Gross profit	$ 51,972	$ 59,847
Gross profit (as a percent)	17.80%	24.60%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 25,164	$ 22,007
Selling, general, and administrative expense (as a percent)	8.60%	9.00%
Operating income:
Operating income	$ 26,808	$ 37,840
Operating income (as a percent)	9.20%	15.50%
U.S. Federal Services | Operating Segments
Revenue:
Revenue	$ 145,285	$ 107,729
Revenue (as a percent)	100.00%	100.00%
Gross profit:
Gross profit	$ 28,238	$ 25,568
Gross profit (as a percent)	19.40%	23.70%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 17,522	$ 12,250
Selling, general, and administrative expense (as a percent)	12.10%	11.40%
Operating income:
Operating income	$ 10,716	$ 13,318
Operating income (as a percent)	7.40%	12.40%
Human Services | Operating Segments
Revenue:
Revenue	$ 119,534	$ 115,744
Revenue (as a percent)	100.00%	100.00%
Gross profit:
Gross profit	$ 30,005	$ 33,852
Gross profit (as a percent)	25.10%	29.20%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 20,898	$ 17,700
Selling, general, and administrative expense (as a percent)	17.50%	15.30%
Operating income:
Operating income	$ 9,107	$ 16,152
Operating income (as a percent)	7.60%	14.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Denominator:
Basic weighted average shares outstanding	65,954,000	65,935,000
Dilutive effect of employee stock options and unvested RSUs	334,000	963,000
Denominator for diluted earnings per share	66,288,000	66,898,000
Antidilutive securities excluded from computation of earnings per share	14,000	0

Debt (Details)

Debt (Details) CAD in Millions, AUD in Millions	3 Months Ended
	Dec. 31, 2015USD ($)periodletter_of_credit	Dec. 31, 2015AUDperiodletter_of_credit	Dec. 31, 2015CADperiodletter_of_credit	Apr. 01, 2015USD ($)	Mar. 09, 2015USD ($)
Credit Agreement Expiring January 2020
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 400,000,000
Debt instrument, face amount				$ 225,000,000
Interest paid	$ 800,000
Credit Agreement Expiring January 2020 | U.S Dollar Borrowings
Debt Instrument [Line Items]
Amount borrowed	232,300,000
Credit Agreement Expiring January 2020 | Canadian Dollar Borrowings
Debt Instrument [Line Items]
Amount borrowed	4,500,000		CAD 6.3
Credit Agreement Expiring January 2020 | Australian Dollar Borrowings
Debt Instrument [Line Items]
Amount borrowed	$ 7,300,000	AUD 10
Credit Agreement Expiring January 2020 | Maximum
Debt Instrument [Line Items]
Leverage ratio	2.5
Total leverage ratio	1
Swingline Loans
Debt Instrument [Line Items]
Maximum borrowing capacity					5,000,000
Letters of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 30,000,000
Number of letters of credit issued | letter_of_credit	3	3	3
Outstanding borrowings	$ 700,000
Atlantic Innovation Fund of Canada
Debt Instrument [Line Items]
Amount borrowed	800,000		CAD 1.1
Interest expense, debt	$ 0
Number of remaining quarterly installments | period	26	26	26
Letters of Credit (Other than Revolving Credit Agreement)
Debt Instrument [Line Items]
Number of letters of credit issued | letter_of_credit	2	2	2
Outstanding borrowings	$ 3,000,000

Business combinations (Details)

Business combinations (Details) $ in Thousands	Dec. 15, 2015USD ($)company	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2015USD ($)
Business Acquisition [Line Items]
Contingent consideration transferred		$ 2,606	$ 0
Goodwill		$ 387,118		$ 376,302
Assessments Australia
Business Acquisition [Line Items]
Percentage of business acquired	100.00%
Number of businesses acquired | company	3
Contingent consideration transferred	$ 2,700
Cash payments to acquire businesses	2,600
Contingent consideration	100
Contingent consideration arrangements, range of outcomes, value, high	600
Goodwill	2,000
Recognized identifiable assets acquired and liabilities assumed, intangible assets	$ 900

Business combinations (Details

Business combinations (Details 2) - USD ($) $ in Thousands	Apr. 01, 2015	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Estimated purchase consideration, net of cash acquired		$ 2,606		$ 0
Goodwill		387,118	$ 376,302
Acentia LLC
Business Acquisition [Line Items]
Percentage of business acquired	100.00%
Estimated purchase consideration, net of cash acquired	$ 293,504	293,504
Billed and unbilled receivables		35,333
Other assets		4,242
Property and equipment		2,140
Intangible assets — customer relationships		69,900
Total identifiable assets acquired		111,615
Accounts payable and other liabilities		32,426
Deferred revenue		251
Capital lease obligations		567
Deferred tax liabilities		9,167
Total liabilities assumed		42,411
Net identifiable assets acquired		69,204
Goodwill		224,300
Net assets acquired		293,504
Percentage of goodwill anticipated to be deductible for tax purpose	$ 175,000
Acentia LLC | Customer relationships
Business Acquisition [Line Items]
Amortization period of intangible assets (in years)	14 years
Previously Reported | Acentia LLC
Business Acquisition [Line Items]
Estimated purchase consideration, net of cash acquired			293,504
Billed and unbilled receivables			35,333
Other assets			5,050
Property and equipment			2,140
Intangible assets — customer relationships			69,900
Total identifiable assets acquired			112,423
Accounts payable and other liabilities			32,426
Deferred revenue			251
Capital lease obligations			567
Deferred tax liabilities			0
Total liabilities assumed			33,244
Net identifiable assets acquired			79,179
Goodwill			214,325
Net assets acquired			$ 293,504
Purchase Accounting Adjustment | Acentia LLC
Business Acquisition [Line Items]
Estimated purchase consideration, net of cash acquired		0
Other assets		(808)
Total identifiable assets acquired		(808)
Deferred tax liabilities		9,167
Total liabilities assumed		9,167
Net identifiable assets acquired		(9,975)
Goodwill		9,975
Net assets acquired		$ 0

Supplemental disclosures (Detai

Supplemental disclosures (Details) - USD ($)	1 Months Ended	3 Months Ended
	Nov. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Aug. 31, 2015	Sep. 30, 2014
Income Taxes Paid, Net [Abstract]
Income taxes paid		$ 19,150,000	$ 5,900,000
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents		50,958,000	149,196,000	$ 74,672,000		$ 158,112,000
Foreign currency translation adjustments		(2,159,000)	(10,480,000)
Effect of exchange rate changes on cash and cash equivalents		590,000	3,606,000
Decline in goodwill value		1,200,000
Payments for Repurchase of Equity [Abstract]
Stock repurchase programs, authorized amount					$ 200,000,000
Repurchases of common stock		(29,139,000)	$ (30,618,000)
Amount remaining available for future stock repurchases		139,400,000
Compensation and Retirement Disclosure [Abstract]
Investments in mutual funds		$ 10,300,000
Employee Benefits and Share-based Compensation [Abstract]
Vesting period		5 years
Restricted Stock Units (RSUs)
Employee Benefits and Share-based Compensation [Abstract]
Granted (in shares)	400,000
Common Stock
Payments for Repurchase of Equity [Abstract]
Common shares repurchased		543,000	753,000
Non-U.S.
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents		$ 45,131,000

Dividend (Details)

Dividend (Details) - Subsequent Event	Jan. 08, 2016$ / shares
Subsequent Event [Line Items]
Dividend declared date	Jan. 8, 2016
Cash dividend declared (in dollars per share)	$ 0.045
Dividends payable date	Feb. 29, 2016
Dividends payable date of record	Feb. 16, 2016