Maximus (MMS) 10-Q 3 Aug 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document and Entity Information
Entity Registrant Name	MAXIMUS INC
Entity Central Index Key	1,032,220
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		64,869,450

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenue	$ 600,447	$ 617,094	$ 1,830,058	$ 1,780,269
Cost of revenue	448,258	465,715	1,380,734	1,371,008
Gross profit	152,189	151,379	449,324	409,261
Selling, general and administrative expenses	68,308	69,706	202,302	199,916
Amortization of intangible assets	2,720	3,517	9,508	9,928
Restructuring costs	0	0	2,242	0
Acquisition-related expenses	0	0	0	575
Gain on sale of a business	650	6,453	650	6,453
Operating income	81,811	84,609	235,922	205,295
Interest expense	458	1,029	2,051	3,291
Other income, net	1,306	62	1,986	3,402
Income before income taxes	82,659	83,642	235,857	205,406
Provision for income taxes	24,871	30,892	78,643	76,433
Net income	57,788	52,750	157,214	128,973
Income attributable to noncontrolling interests	(870)	(525)	(1,117)	(1,354)
Net income attributable to MAXIMUS	$ 56,918	$ 52,225	$ 156,097	$ 127,619
Basic earnings per share attributable to MAXIMUS (in dollars per share)	$ 0.87	$ 0.79	$ 2.38	$ 1.94
Diluted earnings per share attributable to MAXIMUS (in dollars per share)	0.86	0.79	2.36	1.93
Dividends paid per share (in dollars per share)	$ 0.045	$ 0.045	$ 0.135	$ 0.135
Weighted average shares outstanding:
Basic weighted average shares outstanding (in shares)	65,571	65,766	65,637	65,836
Diluted weighted average shares outstanding (in shares)	66,082	66,194	66,023	66,200

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 57,788	$ 52,750	$ 157,214	$ 128,973
Foreign currency translation adjustments	5,936	(9,354)	1,865	(11,979)
Interest rate hedge, net of income taxes of $3, $8, $0 and $4	(4)	(11)	1	(5)
Comprehensive income	63,720	43,385	159,080	116,989
Comprehensive income attributable to noncontrolling interests	870	525	1,117	1,354
Comprehensive income attributable to MAXIMUS	$ 62,850	$ 42,860	$ 157,963	$ 115,635

CONSOLIDATED STATEMENTS OF COM4

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Interest rate hedge, tax	$ (3)	$ (8)	$ 0	$ (4)

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 104,378	$ 66,199
Accounts receivable — billed and billable, net of reserves of $4,371 and $4,226	376,972	444,357
Accounts receivable — unbilled	43,718	36,433
Income taxes receivable	11,569	17,273
Prepaid expenses and other current assets	52,902	56,718
Total current assets	589,539	620,980
Property and equipment, net	106,622	131,569
Capitalized software, net	27,370	30,139
Goodwill	397,386	397,558
Intangible assets, net	99,487	109,027
Deferred contract costs, net	17,048	18,182
Deferred compensation plan assets	27,148	23,307
Deferred income taxes	8,548	8,644
Other assets	10,347	9,413
Total assets	1,283,495	1,348,819
Current liabilities:
Accounts payable and accrued liabilities	111,856	150,711
Accrued compensation and benefits	85,662	96,480
Deferred revenue	67,498	73,692
Income taxes payable	7,713	7,979
Long-term debt, current portion	180	277
Other liabilities	12,541	11,617
Total current liabilities	285,450	340,756
Deferred revenue, less current portion	29,893	40,007
Deferred income taxes	24,731	16,813
Long-term debt	15,540	165,338
Deferred compensation plan liabilities, less current portion	28,668	24,012
Other liabilities	9,122	8,753
Total liabilities	393,404	595,679
Shareholders’ equity:
Common stock, no par value; 100,000 shares authorized; 64,854 and 65,223 shares issued and outstanding at June 30, 2017 and September 30, 2016, at stated amount, respectively	478,120	461,679
Accumulated other comprehensive loss	(34,303)	(36,169)
Retained earnings	441,795	323,571
Total MAXIMUS shareholders’ equity	885,612	749,081
Noncontrolling interests	4,479	4,059
Total equity	890,091	753,140
Total liabilities and equity	$ 1,283,495	$ 1,348,819

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts,receivable current	$ 4,371	$ 4,226
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	64,854,000	65,223,000
Common stock, shares issued	64,854,000	65,223,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operations:
Net income	$ 157,214	$ 128,973
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization of property, equipment and capitalized software	43,416	39,246
Amortization of intangible assets	9,508	9,928
Deferred income taxes	8,614	(1,747)
Stock compensation expense	15,822	13,818
Gain on sale of a business	(650)	(6,453)
Change in assets and liabilities:
Accounts receivable — billed and billable	68,023	(27,469)
Accounts receivable — unbilled	(7,267)	(5,556)
Prepaid expenses and other current assets	5,944	4,378
Deferred contract costs	1,114	956
Accounts payable and accrued liabilities	(37,413)	(20,617)
Accrued compensation and benefits	(1,703)	(9,974)
Deferred revenue	(16,270)	(11,703)
Income taxes	5,370	(965)
Other assets and liabilities	375	(4,683)
Cash flows from operations	252,097	108,132
Cash flows from investing activities:
Purchases of property and equipment and capitalized software costs	(19,088)	(34,103)
Acquisition of businesses, net of cash acquired	0	(46,736)
Proceeds from the sale of a business	1,035	5,515
Other	485	381
Cash used in investing activities	(17,568)	(74,943)
Cash flows from financing activities:
Cash dividends paid to MAXIMUS shareholders	(8,754)	(8,780)
Repurchases of common stock	(28,858)	(33,335)
Tax withholding related to RSU vesting	(9,267)	(11,597)
Borrowings under credit facility	155,000	139,823
Repayment of credit facility and other long-term debt	(304,902)	(139,817)
Stock option exercises	370	205
Other	(1,225)	(533)
Cash used in financing activities	(197,636)	(54,034)
Effect of exchange rate changes on cash and cash equivalents	1,286	(3,218)
Net increase/(decrease) in cash and cash equivalents	38,179	(24,063)
Cash and cash equivalents, beginning of period	66,199	74,672
Cash and cash equivalents, end of period	$ 104,378	$ 50,609

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Accumulated Other Comprehensive Income/(Loss)	Retained Earnings	Noncontrolling Interest
Balance (in shares) at Sep. 30, 2015		65,437
Balance at Sep. 30, 2015	$ 615,699	$ 446,132	$ (22,365)	$ 188,611	$ 3,321
Increase (Decrease) in Shareholders' Equity
Net income including noncontrolling interest	128,973			127,619	1,354
Foreign currency translation	(11,979)		(11,979)
Interest rate hedge, net of income taxes	(5)		(5)
Cash dividends	(9,840)			(8,780)	(1,060)
Dividends on RSUs		268		(268)
Repurchases of common stock	(31,336)	$ (31,300)		(31,336)
Repurchases of common stock (in shares)		(587)
Stock compensation expense	13,818	$ 13,818
Tax withholding related to RSU vesting	(14)	$ (14)
Stock options exercised and RSUs vested (in shares)		42
Stock options exercised and RSUs vested	205	$ 205
Balance (in shares) at Jun. 30, 2016		64,892
Balance at Jun. 30, 2016	$ 705,521	$ 460,409	(34,349)	275,846	3,615
Balance (in shares) at Sep. 30, 2016	65,223	65,223
Balance at Sep. 30, 2016	$ 753,140	$ 461,679	(36,169)	323,571	4,059
Increase (Decrease) in Shareholders' Equity
Net income including noncontrolling interest	157,214			156,097	1,117
Foreign currency translation	1,865		1,865
Interest rate hedge, net of income taxes	1		1
Cash dividends	(9,451)			(8,754)	(697)
Dividends on RSUs		261		(261)
Repurchases of common stock	(28,858)	$ (28,900)		(28,858)
Repurchases of common stock (in shares)		(558)
Stock compensation expense	15,822	$ 15,822
Tax withholding related to RSU vesting	(12)	$ (12)
Stock options exercised and RSUs vested (in shares)		189
Stock options exercised and RSUs vested	$ 370	$ 370
Balance (in shares) at Jun. 30, 2017	64,854	64,854
Balance at Jun. 30, 2017	$ 890,091	$ 478,120	$ (34,303)	$ 441,795	$ 4,479

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Jun. 30, 2017
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. As permitted by these instructions, 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 and nine months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2016 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. 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, 2016 and 2015 and for each of the three years ended September 30, included in our Annual Report on Form 10-K for the year ended September 30, 2016 which was filed with the Securities and Exchange Commission on November 21, 2016 .

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information The table below provides certain financial information for each of our business segments. Three Months Ended June 30, Nine Months Ended June 30, (dollars in thousands) 2017 % (1) 2016 % (1) 2017 % (1) 2016 % (1) Revenue: Health Services $ 335,090 100 % $ 333,699 100 % $ 1,024,813 100 % $ 956,169 100 % U.S. Federal Services 131,589 100 % 149,601 100 % 418,257 100 % 445,077 100 % Human Services 133,768 100 % 133,794 100 % 386,988 100 % 379,023 100 % Total $ 600,447 100 % $ 617,094 100 % $ 1,830,058 100 % $ 1,780,269 100 % Gross profit: Health Services $ 83,269 24.8 % $ 76,775 23.0 % $ 247,957 24.2 % $ 211,464 22.1 % U.S. Federal Services 33,627 25.6 % 38,980 26.1 % 107,774 25.8 % 100,639 22.6 % Human Services 35,293 26.4 % 35,624 26.6 % 93,593 24.2 % 97,158 25.6 % Total $ 152,189 25.3 % $ 151,379 24.5 % $ 449,324 24.6 % $ 409,261 23.0 % Selling, general and administrative expense: Health Services $ 31,716 9.5 % $ 26,345 7.9 % $ 89,737 8.8 % $ 77,312 8.1 % U.S. Federal Services 17,757 13.5 % 19,861 13.3 % 56,379 13.5 % 55,821 12.5 % Human Services 18,925 14.1 % 21,373 16.0 % 55,827 14.4 % 64,006 16.9 % Other (4) (90 ) NM 2,127 NM 359 NM 2,777 NM Total $ 68,308 11.4 % $ 69,706 11.3 % $ 202,302 11.1 % $ 199,916 11.2 % Operating income: Health Services $ 51,553 15.4 % $ 50,430 15.1 % $ 158,220 15.4 % $ 134,152 14.0 % U.S. Federal Services 15,870 12.1 % 19,119 12.8 % 51,395 12.3 % 44,818 10.1 % Human Services 16,368 12.2 % 14,251 10.7 % 37,766 9.8 % 33,152 8.7 % Amortization of intangible assets (2,720 ) NM (3,517 ) NM (9,508 ) NM (9,928 ) NM Restructuring costs (2) — NM — NM (2,242 ) NM — NM Acquisition-related expenses (3) — NM — NM — NM (575 ) NM Gain on sale of a business 650 NM 6,453 NM 650 NM 6,453 NM Other (4) 90 NM (2,127 ) NM (359 ) NM (2,777 ) NM Total $ 81,811 13.6 % $ 84,609 13.7 % $ 235,922 12.9 % $ 205,295 11.5 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) During the current fiscal year, we incurred costs in restructuring our United Kingdom Human Services business. See "Note 6. Supplemental disclosures" for more information. (3) Acquisition-related expenses relate to the acquisitions of Assessments Australia and Ascend in December 2015 and February 2016, respectively. (4) Other costs and credits relate to SG&A balances that do not relate directly to segment business activities. During the three and nine months ended June 30, 2016 , we incurred $2.1 million and $2.8 million , respectively, of legal costs related to a matter that occurred in fiscal year 2014. This matter was settled in the third quarter of fiscal 2017.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Jun. 30, 2017
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 Nine Months Ended (shares in thousands) 2017 2016 2017 2016 Basic weighted average shares outstanding 65,571 65,766 65,637 65,836 Dilutive effect of employee stock options and unvested RSUs 511 428 386 364 Denominator for diluted earnings per share 66,082 66,194 66,023 66,200 All of our unvested restricted stock units (RSUs) are included in the calculations of dilution above. During the current fiscal year, we adopted a new accounting standard which changed the methodology by which we calculate our diluted weighted average shares outstanding. See "Note 8. Recent accounting pronouncements" for details of this change.

Business combinations and dispo

Business combinations and disposals	9 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Business combinations and disposals	Business combinations and disposals Revitalised On July 18, 2017, MAXIMUS Companies Limited, a wholly owned subsidiary of MAXIMUS, Inc., acquired 100% of the share capital of Revitalised Limited ("Revitalised"). Consideration is comprised of $2.8 million in cash and up to $1.6 million in contingent consideration. Revitalised provides digital solutions to engage communities in the areas of health, fitness and wellbeing. We acquired Revitalised in order to enhance the capabilities of our health services programs in the United Kingdom and, accordingly, the business will be integrated into our Health Services Segment. The acquisition agreement includes the potential for adjustments based upon working capital at the date of acquisition. We have not yet completed our assessment of the fair value of the total consideration, including the contingent consideration, or our assessment of the fair value of the assets acquired and liabilities assumed. K-12 Education On May 9, 2016, MAXIMUS sold its K-12 Education business, which was previously part of the Company's Human Services Segment. The Company recorded a gain of $6.5 million at June 30, 2016. Following adjustments to the purchase price based upon the working capital of the business, the gain was adjusted to $6.9 million for the fiscal year ended September 30, 2016. This gain excluded a balance of $0.7 million which we had reserved to cover potential contingencies related to the sale. As payment of these contingencies is no longer considered probable, we have recorded additional gain in the three and nine months ended June 30, 2017. The cash balance related to this contingency had been in escrow; it was received by us in June 2017. Ascend Management Innovations, LLC On February 29, 2016, MAXIMUS Health Services, Inc., a wholly owned subsidiary of MAXIMUS, Inc., acquired 100% of the share capital of Ascend Management Innovations, LLC ("Ascend") for cash consideration of $44.1 million . Ascend is a provider of independent, specialized health assessments and data management tools to government agencies in the United States. We acquired Ascend to broaden our ability to help our existing government clients deal with the rising demand for long-term care services. This business has been integrated into our Health Services Segment. Management estimated the fair value of intangible assets acquired as $22.3 million , with an average weighted life of 18 years , and the fair value of goodwill as $18.0 million , which is expected to be deductible for tax purposes. We believe that this goodwill represents the value of the assembled workforce of Ascend, as well as the enhanced knowledge and capabilities resulting from this business combination. We have completed our evaluation of the fair value of all of the assets and liabilities acquired. Our allocation of fair value for the Ascend acquisition, updated through June 30, 2017 , is shown below. (dollars in thousands) Updated through September 30, 2016 Adjustments Updated through June 30, 2017 Cash consideration, net of cash acquired $ 44,069 $ — $ 44,069 Billed and unbilled receivables $ 4,069 $ — $ 4,069 Other assets 407 — 407 Property and equipment and other assets 707 — 707 Deferred income taxes — 557 557 Intangible assets 22,300 — 22,300 Total identifiable assets acquired 27,483 557 28,040 Accounts payable and other liabilities 1,414 — 1,414 Deferred revenue 554 — 554 Total liabilities assumed 1,968 — 1,968 Net identifiable assets acquired 25,515 557 26,072 Goodwill 18,554 (557 ) 17,997 Net assets acquired $ 44,069 $ — $ 44,069 The valuation of the intangible assets acquired is summarized below: (dollars in thousands) Useful life Fair value Customer relationships 19 years $ 20,400 Trade name 8 years 1,700 Technology-based intangible assets 1 year 200 Total intangible assets $ 22,300 Assessments Australia On December 15, 2015, MAXIMUS acquired 100% of the share capital of three companies doing business as "Assessments Australia." We acquired Assessments Australia to expand our service offerings within Australia. The consideration is comprised of $2.6 million in cash and contingent consideration of $0.5 million to the sellers of Assessments Australia if sufficient contracts with a specific government agency are won by MAXIMUS prior to December 2022. We performed a probability weighted assessment of this payment. Changes in our assessment of this liability are recorded through the Statement of Operations. This business was integrated into our Human Services Segment. Management has estimated goodwill and intangible assets acquired as $3.0 million and $0.4 million , respectively, which is deductible for tax purposes. We have completed our evaluation of the fair value of asset and liabilities acquired. We believe that the goodwill represents the value of the assembled workforce of Assessments Australia, as well as the enhanced capabilities that the business will provide us. The intangible assets acquired represent customer relationships. These are being amortized on a straight-line basis over six years .

Goodwill

Goodwill	9 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Changes in goodwill by segment for the nine months ended June 30, 2017 are as follows: (dollars in thousands) Health Services U.S. Federal Services Human Services Total Balance as of September 30, 2016 $ 123,679 $ 228,148 $ 45,731 $ 397,558 Adjustment to goodwill acquired with Ascend (557 ) — — (557 ) Adjustment to goodwill acquired with Assessments Australia — — 71 71 Foreign currency translation 197 — 117 314 Balance as of June 30, 2017 $ 123,319 $ 228,148 $ 45,919 $ 397,386

Supplemental disclosures

Supplemental disclosures	9 Months Ended
	Jun. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Supplemental disclosures	Supplemental disclosures During the nine months ended June 30, 2017 and 2016 , we made income tax payments of $65.5 million and $79.5 million , respectively. At June 30, 2017 , we held cash and cash equivalents of $104.4 million . Of these funds, $101.1 million are held in jurisdictions outside the United States, the majority of which are held in foreign currencies. We have no requirement or intent at this time to transfer the funds to the United States. Increases in the value of foreign currencies with respect to the United States Dollar resulted in an increase in net assets of $1.9 million in the nine months ended June 30, 2017 . These increases were recorded as gains 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. The resolution also authorizes the use of option exercise proceeds for the repurchase of our common stock. During the nine months ended June 30, 2017 and 2016 , we repurchased 0.6 million and 0.6 million common shares at a cost of $28.9 million and $31.3 million , respectively. At June 30, 2017 , $109.3 million remained available for future stock repurchases. Our deferred compensation plan assets include $14.5 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. During the nine months ended June 30, 2017 , 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 amounts that are ready to be invoiced and the funds are collectible within standard invoice terms. During the nine months ended June 30, 2017 , we undertook a restructuring of our United Kingdom Human Services operations as part of the ongoing integration of Remploy. We recorded restructuring costs of $2.2 million , principally severance expenses.

Debt

Debt	9 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Debt	Debt We have a credit facility allowing borrowings of up to $400 million . The arrangement terminates on March 9, 2020, at which time all outstanding borrowings must be repaid. The credit facility permits us to make borrowings in currencies other than the United States Dollar. At June 30, 2017 , we have U.S. Dollar borrowings of $15.0 million and no borrowings in other currencies. At June 30, 2017 , we held two letters of credit under the credit facility totaling $0.7 million . 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. Our credit facility 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 June 30, 2017 . There are no restrictions on our dividend payments if our leverage ratio is less than 2.5 :1.0. At June 30, 2017 , our total leverage ratio was less than 1.0 :1.0. Accordingly, we do not believe that the provisions of the credit facility represent a significant restriction on our ability to pay dividends or to the successful operation of the business. During the nine months ended June 30, 2017 and 2016 , we made interest payments of $1.9 million and $2.9 million , respectively. We utilized interest swap agreements to manage our exposure against interest rate fluctuations. None of our outstanding debt balance was covered by these instruments at June 30, 2017 . Gains and losses in the fair value of these instruments were recorded in the statement of comprehensive income. In addition to borrowings under the credit facility, we have an outstanding loan of $0.7 million ( 0.9 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 20 remaining quarterly installments.

Recent accounting pronouncement

Recent accounting pronouncements	9 Months Ended
	Jun. 30, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent accounting pronouncements	Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. In addition, the FASB has issued additional updates covering technical items and changing the date of adoption. 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 will adopt this standard during our 2019 fiscal year. We have established a cross-functional steering committee which includes representatives from across all our business and support segments. The steering committee is responsible for evaluating the impact of the standard on our operations including accounting, taxation, internal audit and financial systems. Our approach to analyzing these impacts includes reviewing our current accounting policies and practices to identify potential differences that will result from applying the requirements of the new standard to our existing contracts. In addition, we are in the process of evaluating the changes needed to our business processes, systems and controls in order to support revenue recognition and the related disclosures under the new standard. The standard permits a retrospective or cumulative effect transition method. We anticipate that we will adopt the new standard using the retrospective method. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard will change the manner in which we will present our leasing arrangements. This standard would be effective during our 2020 fiscal year, although early adoption is permitted. We are evaluating the likely effects on our business. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation, Improvements to Employee Share-Based Payment Accounting . We adopted this standard in the current year. The new standard requires us to record the tax benefit or expense related to the vesting of RSUs or the exercise of stock options within our provision for income taxes in the consolidated statement of operations; this benefit was previously reported in the statement of changes in shareholders’ equity. The cash flow effects of the tax benefit will be reported in cash flows from operations; they were previously in cash flows from financing activities. The new standard allows us more flexibility in net settling RSUs as they vest. The new standard also allows for changes in accounting for the forfeiture of stock awards; we will continue to estimate our stock award forfeitures as we expense each award. This new standard has had the following effects in fiscal year 2017: • During the nine months ended June 30, 2017 , approximately 0.2 million shares were issued through the vesting of RSUs and the exercise of stock options. For the three and nine months ended June 30, 2017 , this resulted in a decrease in our provision for income taxes of $0.6 million and $2.8 million , respectively, with a corresponding benefit to our cash flows from operations. • Our diluted weighted average shares outstanding was higher than it would have been if the former standard had been in place. • The combination of these factors resulted in a net increase of $0.01 and $0.04 to our basic and diluted earnings per share for the three and nine months ended June 30, 2017 , compared to what would have been recorded under the former accounting guidance. The new standard does not require us to adjust previously reported results. Accordingly, we have made no changes to our consolidated statements of operations, cash flows or changes in shareholders' equity for any comparative periods. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. This standard will not change the manner in which we would identify a goodwill impairment but would change the manner of the calculation of any resulting impairment. Under existing guidance, we would calculate goodwill for each of our reporting units by calculating the fair value of all existing assets and liabilities within that reporting unit and comparing this to the fair value of the reporting unit; to the extent that this difference is less than our existing goodwill balance related to that reporting unit, we would record an impairment. The new standard will require us to calculate goodwill based upon the difference between the fair value and reported value of a reporting unit. This standard would be effective for our 2021 fiscal year, although early adoption is permitted.

Subsequent event

Subsequent event	9 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Event	Subsequent event On July 7, 2017 , 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 August 31, 2017 to shareholders of record on August 15, 2017 .

Organization and Basis of Pre18

Organization and Basis of Presentation (Policies)	9 Months Ended
	Jun. 30, 2017
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. As permitted by these instructions, 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 and nine months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2016 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.
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.
Recent Accounting Pronouncements	Recent accounting pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. In addition, the FASB has issued additional updates covering technical items and changing the date of adoption. 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 will adopt this standard during our 2019 fiscal year. We have established a cross-functional steering committee which includes representatives from across all our business and support segments. The steering committee is responsible for evaluating the impact of the standard on our operations including accounting, taxation, internal audit and financial systems. Our approach to analyzing these impacts includes reviewing our current accounting policies and practices to identify potential differences that will result from applying the requirements of the new standard to our existing contracts. In addition, we are in the process of evaluating the changes needed to our business processes, systems and controls in order to support revenue recognition and the related disclosures under the new standard. The standard permits a retrospective or cumulative effect transition method. We anticipate that we will adopt the new standard using the retrospective method. In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard will change the manner in which we will present our leasing arrangements. This standard would be effective during our 2020 fiscal year, although early adoption is permitted. We are evaluating the likely effects on our business. In March 2016, the FASB issued ASU No. 2016-09, Stock Compensation, Improvements to Employee Share-Based Payment Accounting . We adopted this standard in the current year. The new standard requires us to record the tax benefit or expense related to the vesting of RSUs or the exercise of stock options within our provision for income taxes in the consolidated statement of operations; this benefit was previously reported in the statement of changes in shareholders’ equity. The cash flow effects of the tax benefit will be reported in cash flows from operations; they were previously in cash flows from financing activities. The new standard allows us more flexibility in net settling RSUs as they vest. The new standard also allows for changes in accounting for the forfeiture of stock awards; we will continue to estimate our stock award forfeitures as we expense each award. This new standard has had the following effects in fiscal year 2017: • During the nine months ended June 30, 2017 , approximately 0.2 million shares were issued through the vesting of RSUs and the exercise of stock options. For the three and nine months ended June 30, 2017 , this resulted in a decrease in our provision for income taxes of $0.6 million and $2.8 million , respectively, with a corresponding benefit to our cash flows from operations. • Our diluted weighted average shares outstanding was higher than it would have been if the former standard had been in place. • The combination of these factors resulted in a net increase of $0.01 and $0.04 to our basic and diluted earnings per share for the three and nine months ended June 30, 2017 , compared to what would have been recorded under the former accounting guidance. The new standard does not require us to adjust previously reported results. Accordingly, we have made no changes to our consolidated statements of operations, cash flows or changes in shareholders' equity for any comparative periods. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. This standard will not change the manner in which we would identify a goodwill impairment but would change the manner of the calculation of any resulting impairment. Under existing guidance, we would calculate goodwill for each of our reporting units by calculating the fair value of all existing assets and liabilities within that reporting unit and comparing this to the fair value of the reporting unit; to the extent that this difference is less than our existing goodwill balance related to that reporting unit, we would record an impairment. The new standard will require us to calculate goodwill based upon the difference between the fair value and reported value of a reporting unit. This standard would be effective for our 2021 fiscal year, although early adoption is permitted.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2017
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 June 30, Nine Months Ended June 30, (dollars in thousands) 2017 % (1) 2016 % (1) 2017 % (1) 2016 % (1) Revenue: Health Services $ 335,090 100 % $ 333,699 100 % $ 1,024,813 100 % $ 956,169 100 % U.S. Federal Services 131,589 100 % 149,601 100 % 418,257 100 % 445,077 100 % Human Services 133,768 100 % 133,794 100 % 386,988 100 % 379,023 100 % Total $ 600,447 100 % $ 617,094 100 % $ 1,830,058 100 % $ 1,780,269 100 % Gross profit: Health Services $ 83,269 24.8 % $ 76,775 23.0 % $ 247,957 24.2 % $ 211,464 22.1 % U.S. Federal Services 33,627 25.6 % 38,980 26.1 % 107,774 25.8 % 100,639 22.6 % Human Services 35,293 26.4 % 35,624 26.6 % 93,593 24.2 % 97,158 25.6 % Total $ 152,189 25.3 % $ 151,379 24.5 % $ 449,324 24.6 % $ 409,261 23.0 % Selling, general and administrative expense: Health Services $ 31,716 9.5 % $ 26,345 7.9 % $ 89,737 8.8 % $ 77,312 8.1 % U.S. Federal Services 17,757 13.5 % 19,861 13.3 % 56,379 13.5 % 55,821 12.5 % Human Services 18,925 14.1 % 21,373 16.0 % 55,827 14.4 % 64,006 16.9 % Other (4) (90 ) NM 2,127 NM 359 NM 2,777 NM Total $ 68,308 11.4 % $ 69,706 11.3 % $ 202,302 11.1 % $ 199,916 11.2 % Operating income: Health Services $ 51,553 15.4 % $ 50,430 15.1 % $ 158,220 15.4 % $ 134,152 14.0 % U.S. Federal Services 15,870 12.1 % 19,119 12.8 % 51,395 12.3 % 44,818 10.1 % Human Services 16,368 12.2 % 14,251 10.7 % 37,766 9.8 % 33,152 8.7 % Amortization of intangible assets (2,720 ) NM (3,517 ) NM (9,508 ) NM (9,928 ) NM Restructuring costs (2) — NM — NM (2,242 ) NM — NM Acquisition-related expenses (3) — NM — NM — NM (575 ) NM Gain on sale of a business 650 NM 6,453 NM 650 NM 6,453 NM Other (4) 90 NM (2,127 ) NM (359 ) NM (2,777 ) NM Total $ 81,811 13.6 % $ 84,609 13.7 % $ 235,922 12.9 % $ 205,295 11.5 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) During the current fiscal year, we incurred costs in restructuring our United Kingdom Human Services business. See "Note 6. Supplemental disclosures" for more information. (3) Acquisition-related expenses relate to the acquisitions of Assessments Australia and Ascend in December 2015 and February 2016, respectively. (4) Other costs and credits relate to SG&A balances that do not relate directly to segment business activities. During the three and nine months ended June 30, 2016 , we incurred $2.1 million and $2.8 million , respectively, of legal costs related to a matter that occurred in fiscal year 2014. This matter was settled in the third quarter of fiscal 2017.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Jun. 30, 2017
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 Nine Months Ended (shares in thousands) 2017 2016 2017 2016 Basic weighted average shares outstanding 65,571 65,766 65,637 65,836 Dilutive effect of employee stock options and unvested RSUs 511 428 386 364 Denominator for diluted earnings per share 66,082 66,194 66,023 66,200

Business combinations and dis21

Business combinations and disposals (Tables)	9 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date	Our allocation of fair value for the Ascend acquisition, updated through June 30, 2017 , is shown below. (dollars in thousands) Updated through September 30, 2016 Adjustments Updated through June 30, 2017 Cash consideration, net of cash acquired $ 44,069 $ — $ 44,069 Billed and unbilled receivables $ 4,069 $ — $ 4,069 Other assets 407 — 407 Property and equipment and other assets 707 — 707 Deferred income taxes — 557 557 Intangible assets 22,300 — 22,300 Total identifiable assets acquired 27,483 557 28,040 Accounts payable and other liabilities 1,414 — 1,414 Deferred revenue 554 — 554 Total liabilities assumed 1,968 — 1,968 Net identifiable assets acquired 25,515 557 26,072 Goodwill 18,554 (557 ) 17,997 Net assets acquired $ 44,069 $ — $ 44,069
Schedule of valuation of the intangible assets acquired	The valuation of the intangible assets acquired is summarized below: (dollars in thousands) Useful life Fair value Customer relationships 19 years $ 20,400 Trade name 8 years 1,700 Technology-based intangible assets 1 year 200 Total intangible assets $ 22,300

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in the carrying amount of goodwill	Changes in goodwill by segment for the nine months ended June 30, 2017 are as follows: (dollars in thousands) Health Services U.S. Federal Services Human Services Total Balance as of September 30, 2016 $ 123,679 $ 228,148 $ 45,731 $ 397,558 Adjustment to goodwill acquired with Ascend (557 ) — — (557 ) Adjustment to goodwill acquired with Assessments Australia — — 71 71 Foreign currency translation 197 — 117 314 Balance as of June 30, 2017 $ 123,319 $ 228,148 $ 45,919 $ 397,386

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Revenue	$ 600,447	$ 617,094	$ 1,830,058	$ 1,780,269
Revenue (as a percent)	100.00%	100.00%	100.00%	100.00%
Gross profit:
Gross profit	$ 152,189	$ 151,379	$ 449,324	$ 409,261
Gross profit (as a percent)	25.30%	24.50%	24.60%	23.00%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 68,308	$ 69,706	$ 202,302	$ 199,916
Selling, general, and administrative expense (as a percent)	11.40%	11.30%	11.10%	11.20%
Operating income:
Operating income	$ 81,811	$ 84,609	$ 235,922	$ 205,295
Operating income (as a percent)	13.60%	13.70%	12.90%	11.50%
Amortization of intangible assets	$ (2,720)	$ (3,517)	$ (9,508)	$ (9,928)
Restructuring cost	0	0	(2,242)	0
Acquisition-related expenses	0	0	0	(575)
Gain on sale of a business	650	6,453	650	6,453
Segment Reconciling Items
Operating income:
Amortization of intangible assets	(2,720)	(3,517)	(9,508)	(9,928)
Restructuring cost	0	0	(2,242)	0
Acquisition-related expenses	0	0	0	(575)
Gain on sale of a business	(650)	(6,453)	650	(6,453)
Other
Financial information for each of the Company's business segments
Legal Costs		2,100		2,800
Selling, general and administrative expense:
Selling, general and administrative expenses	(90)	2,127	359	2,777
Operating income:
Operating income	90	(2,127)	(359)	(2,777)
Health Services | Operating Segments
Revenue:
Revenue	$ 335,090	$ 333,699	$ 1,024,813	$ 956,169
Revenue (as a percent)	100.00%	100.00%	100.00%	100.00%
Gross profit:
Gross profit	$ 83,269	$ 76,775	$ 247,957	$ 211,464
Gross profit (as a percent)	24.80%	23.00%	24.20%	22.10%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 31,716	$ 26,345	$ 89,737	$ 77,312
Selling, general, and administrative expense (as a percent)	9.50%	7.90%	8.80%	8.10%
Operating income:
Operating income	$ 51,553	$ 50,430	$ 158,220	$ 134,152
Operating income (as a percent)	15.40%	15.10%	15.40%	14.00%
U.S. Federal Services | Operating Segments
Revenue:
Revenue	$ 131,589	$ 149,601	$ 418,257	$ 445,077
Revenue (as a percent)	100.00%	100.00%	100.00%	100.00%
Gross profit:
Gross profit	$ 33,627	$ 38,980	$ 107,774	$ 100,639
Gross profit (as a percent)	25.60%	26.10%	25.80%	22.60%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 17,757	$ 19,861	$ 56,379	$ 55,821
Selling, general, and administrative expense (as a percent)	13.50%	13.30%	13.50%	12.50%
Operating income:
Operating income	$ 15,870	$ 19,119	$ 51,395	$ 44,818
Operating income (as a percent)	12.10%	12.80%	12.30%	10.10%
Human Services | Operating Segments
Revenue:
Revenue	$ 133,768	$ 133,794	$ 386,988	$ 379,023
Revenue (as a percent)	100.00%	100.00%	100.00%	100.00%
Gross profit:
Gross profit	$ 35,293	$ 35,624	$ 93,593	$ 97,158
Gross profit (as a percent)	26.40%	26.60%	24.20%	25.60%
Selling, general and administrative expense:
Selling, general and administrative expenses	$ 18,925	$ 21,373	$ 55,827	$ 64,006
Selling, general, and administrative expense (as a percent)	14.10%	16.00%	14.40%	16.90%
Operating income:
Operating income	$ 16,368	$ 14,251	$ 37,766	$ 33,152
Operating income (as a percent)	12.20%	10.70%	9.80%	8.70%

Earnings Per Share (Details)

Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Basic weighted average shares outstanding	65,571	65,766	65,637	65,836
Dilutive effect of employee stock options and unvested RSUs	511	428	386	364
Denominator for diluted earnings per share	66,082	66,194	66,023	66,200

Business combinations and dis25

Business combinations and disposals Business combination and disposals Narrative (Details) $ in Thousands	Jul. 18, 2017USD ($)	May 09, 2016USD ($)	Feb. 29, 2016USD ($)	Dec. 15, 2015USD ($)company	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2016USD ($)
Business Acquisition [Line Items]
Gain on sale of a business					$ 650	$ 6,453	$ 650	$ 6,453
Goodwill					397,386		397,386		$ 397,558
Ascend Management Innovations LLC
Business Acquisition [Line Items]
Percentage of business acquired			100.00%
Cash payment to acquire businesses			$ 44,100
Estimated fair value of intangible assets acquired			$ 22,300		22,300		22,300
Weighted average useful life (in years)			18 years
Goodwill			$ 18,000		17,997		17,997
Assessments Australia
Business Acquisition [Line Items]
Percentage of business acquired				100.00%
Cash payment to acquire businesses				$ 2,600
Contingent consideration arrangements, range of outcome, value, high				500
Estimated fair value of intangible assets acquired				$ 400
Number of businesses acquired | company				3
Subsequent Event | Revitalised Limited [Member]
Business Acquisition [Line Items]
Percentage of business acquired	100.00%
Cash payment to acquire businesses	$ 2,800
Contingent consideration arrangements, range of outcome, value, high	$ 1,600
K-12 Education [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Business Acquisition [Line Items]
Gain on sale of a business		$ 6,500							6,900
Related to Disposition of K-12 Education [Member] | K-12 Education [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member]
Business Acquisition [Line Items]
Gain on sale of a business					700		700
Human Services
Business Acquisition [Line Items]
Goodwill					$ 45,919		$ 45,919		$ 45,731
Human Services | Assessments Australia
Business Acquisition [Line Items]
Adjustment to goodwill acquired with Ascend				$ 3,000
Customer relationships | Ascend Management Innovations LLC
Business Acquisition [Line Items]
Useful life							19 years
Customer relationships | Assessments Australia
Business Acquisition [Line Items]
Useful life				6 years

Business combinations and dis26

Business combinations and disposals (Schedule of Assets and Liabilities Recorded in the Company's Financial Statements) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jun. 30, 2017	Sep. 30, 2016	Feb. 29, 2016
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill	$ 397,386	$ 397,558
Ascend Management Innovations LLC
Business Combination, Consideration Transferred [Abstract]
Cash consideration, net of cash acquired	44,069
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Billed and unbilled receivables	4,069
Other assets	407
Property and equipment and other assets	707
Deferred income taxes	557
Intangible assets	22,300		$ 22,300
Total identifiable assets acquired	28,040
Accounts payable and other liabilities	1,414
Deferred revenue	554
Total liabilities assumed	1,968
Net identifiable assets acquired	26,072
Goodwill	17,997		$ 18,000
Net assets acquired	44,069
Previously Reported | Ascend Management Innovations LLC
Business Combination, Consideration Transferred [Abstract]
Cash consideration, net of cash acquired		44,069
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Billed and unbilled receivables		4,069
Other assets		407
Property and equipment and other assets		707
Deferred income taxes		0
Intangible assets		22,300
Total identifiable assets acquired		27,483
Accounts payable and other liabilities		1,414
Deferred revenue		554
Total liabilities assumed		1,968
Net identifiable assets acquired		25,515
Goodwill		18,554
Net assets acquired		$ 44,069
Purchase Accounting Adjustment | Ascend Management Innovations LLC
Business Combination, Consideration Transferred [Abstract]
Adjustments, cash consideration, net of cash acquired	0
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract]
Adjustments, billed and unbilled receivables	0
Adjustments, other noncurrent assets	0
Adjustments, property and equipment and other assets	0
Adjustments, deferred income taxes	557
Adjustments, intangible assets	0
Adjustments, total identifiable assets acquired	557
Adjustments, accounts payable and other liabilities	0
Adjustments, deferred revenue	0
Adjustments, total liabilities assumed	0
Adjustments, net identified assets acquired	557
Adjustments, goodwill	(557)
Adjustments, net assets acquired	$ 0

Business combinations and dis27

Business combinations and disposals (Schedule of the Valuation of the Intangible Assets Acquired) (Details) - Ascend Management Innovations LLC $ in Thousands	9 Months Ended
	Jun. 30, 2017USD ($)
Business Acquisition [Line Items]
Fair value	$ 22,300
Customer relationships
Business Acquisition [Line Items]
Useful life	19 years
Fair value	$ 20,400
Trade Names
Business Acquisition [Line Items]
Useful life	8 years
Fair value	$ 1,700
Technology-Based Intangible Assets
Business Acquisition [Line Items]
Useful life	1 year
Fair value	$ 200

Goodwill (Details)

Goodwill (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2017USD ($)
Goodwill [Roll Forward]
Balance at the beginning of the period	$ 397,558
Foreign currency translation	314
Balance at the end of the period	397,386
Ascend Management Innovations LLC
Goodwill [Roll Forward]
Adjustment to goodwill	(557)
Balance at the end of the period	17,997
Assessments Australia
Goodwill [Roll Forward]
Adjustment to goodwill	71
Health Services
Goodwill [Roll Forward]
Balance at the beginning of the period	123,679
Foreign currency translation	197
Balance at the end of the period	123,319
Health Services | Ascend Management Innovations LLC
Goodwill [Roll Forward]
Adjustment to goodwill	(557)
Health Services | Assessments Australia
Goodwill [Roll Forward]
Adjustment to goodwill	0
U.S. Federal Services
Goodwill [Roll Forward]
Balance at the beginning of the period	228,148
Foreign currency translation	0
Balance at the end of the period	228,148
U.S. Federal Services | Ascend Management Innovations LLC
Goodwill [Roll Forward]
Adjustment to goodwill	0
U.S. Federal Services | Assessments Australia
Goodwill [Roll Forward]
Adjustment to goodwill	0
Human Services
Goodwill [Roll Forward]
Balance at the beginning of the period	45,731
Foreign currency translation	117
Balance at the end of the period	45,919
Human Services | Ascend Management Innovations LLC
Goodwill [Roll Forward]
Adjustment to goodwill	0
Human Services | Assessments Australia
Goodwill [Roll Forward]
Adjustment to goodwill	$ 71

Supplemental disclosures (Detai

Supplemental disclosures (Details) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Aug. 31, 2015
Income Taxes Paid, Net [Abstract]
Income taxes paid			$ 65,500,000	$ 79,500,000
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 104,378,000	$ 50,609,000	104,378,000	50,609,000	$ 66,199,000	$ 74,672,000
Foreign currency translation adjustments	5,936,000	$ (9,354,000)	1,865,000	(11,979,000)
Payments for Repurchase of Equity [Abstract]
Stock repurchase programs, authorized amount							$ 200,000,000
Repurchases of common stock			28,858,000	$ 31,336,000
Amount remaining available for future stock repurchases	109,300,000		$ 109,300,000
Restricted Stock Units (RSUs)
Employee Benefits and Share-based Compensation, Noncash [Abstract]
Granted (in shares)			400
Vesting period			5 years
Common Stock
Payments for Repurchase of Equity [Abstract]
Common shares repurchased			558	587
Repurchases of common stock			$ 28,900,000	$ 31,300,000
Non-U.S.
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	101,100,000		101,100,000
United Kingdom
Restructuring Charges [Abstract]
Restructuring charges			2,200,000
Mutual Fund
Retirement Benefits [Abstract]
Investments in mutual funds	$ 14,500,000		$ 14,500,000

Debt (Details)

Debt (Details) CAD in Millions	9 Months Ended
	Jun. 30, 2017USD ($)periodletter_of_credit	Jun. 30, 2016USD ($)	Jun. 30, 2017CADperiodletter_of_credit
Credit Agreement Expiring January 2020
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 400,000,000
Dividend payment restriction ratio (less than)	2.5
Total leverage ratio (less than)	1
Interest paid	$ 1,900,000	$ 2,900,000
Credit Agreement Expiring January 2020 | U.S Dollar Borrowings
Debt Instrument [Line Items]
Amount borrowed	$ 15,000,000
Letters of Credit
Debt Instrument [Line Items]
Number of letters of credit issued | letter_of_credit	2		2
Outstanding borrowings	$ 700,000
Letters of Credit (Other than Revolving Credit Agreement)
Debt Instrument [Line Items]
Number of letters of credit issued | letter_of_credit	2		2
Outstanding borrowings	$ 3,000,000
Atlantic Innovation Fund of Canada
Debt Instrument [Line Items]
Number of remaining quarterly installments | period	20		20
Atlantic Innovation Fund of Canada | Canadian Dollar Borrowings
Debt Instrument [Line Items]
Amount borrowed	$ 700,000		CAD 0.9

Recent accounting pronounceme31

Recent accounting pronouncements - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Tax benefit from adoption of ASU 2016-09	$ (24,871)	$ (30,892)	$ (78,643)	$ (76,433)
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Tax benefit from adoption of ASU 2016-09	$ 600		$ 2,800
Increase in earnings per share, basic and diluted (in usd per share)	$ 0.01		$ 0.04
Common Stock
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
RSUs vested (in shares)			189	42

Subsequent event (Details)

Subsequent event (Details) - Subsequent Event	Jul. 07, 2017$ / shares
Subsequent Event [Line Items]
Dividend declared date	Jul. 7, 2017
Cash dividend declared (in dollars per share)	$ 0.045
Dividends payable date	Aug. 31, 2017
Dividends payable date of record	Aug. 15, 2017