Maximus (MMS) 10-Q 7 May 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Mar. 31, 2020	May 04, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	1-12997
Entity Registrant Name	MAXIMUS, INC.
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	54-1000588
Entity Address, Address Line One	1891 Metro Center Drive
Entity Address, City or Town	Reston
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	20190
City Area Code	703
Local Phone Number	251-8500
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	MMS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		61,312,619
Entity Central Index Key	0001032220
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue	$ 818,135	$ 736,520	$ 1,636,364	$ 1,401,139
Cost of revenue	665,037	567,098	1,307,816	1,072,452
Gross profit	153,098	169,422	328,548	328,687
Selling, general and administrative expenses	106,853	78,102	194,080	157,773
Amortization of intangible assets	8,934	9,519	18,022	14,977
Operating income	37,311	81,801	116,446	155,937
Interest expense	465	1,569	949	2,194
Other income, net	573	447	1,292	2,492
Income before income taxes	37,419	80,679	116,789	156,235
Provision for income taxes	9,769	18,913	30,405	38,746
Net income	27,650	61,766	86,384	117,489
Loss attributable to noncontrolling interests	0	(158)	0	(348)
Net income attributable to MAXIMUS	$ 27,650	$ 61,924	$ 86,384	$ 117,837
Basic earnings per share (in dollars per share)	$ 0.43	$ 0.96	$ 1.34	$ 1.82
Diluted earnings per share (in dollars per share)	0.43	0.96	1.34	1.82
Dividends paid per share (in dollars per share)	$ 0.28	$ 0.25	$ 0.56	$ 0.50
Weighted average shares outstanding:
Basic (in shares)	63,934	64,369	64,264	64,600
Diluted (in shares)	64,125	64,643	64,446	64,817

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 27,650	$ 61,766	$ 86,384	$ 117,489
Foreign currency translation adjustments	(11,629)	3,537	(4,736)	(2,183)
Comprehensive income	16,021	65,303	81,648	115,306
Comprehensive loss attributable to noncontrolling interests	0	(158)	0	(348)
Comprehensive income attributable to MAXIMUS	$ 16,021	$ 65,461	$ 81,648	$ 115,654

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 126,257	$ 105,565
Accounts receivable — billed and billable, net of reserves of $12,054 and $5,382	529,928	476,690
Accounts receivable — unbilled	120,159	123,884
Income taxes receivable	33,852	20,805
Prepaid expenses and other current assets	53,257	62,481
Total current assets	863,453	789,425
Property and equipment, net	80,843	99,589
Capitalized software, net	33,746	32,369
Operating lease right-of-use assets	179,701
Goodwill	585,772	584,469
Intangible assets, net	161,091	179,250
Deferred contract costs, net	19,278	18,921
Deferred compensation plan assets	28,016	32,908
Deferred income taxes	186	186
Other assets	8,320	8,615
Total assets	1,960,406	1,745,732
Current liabilities:
Accounts payable and accrued liabilities	191,505	177,786
Accrued compensation and benefits	98,882	106,789
Deferred revenue	46,206	43,344
Income taxes payable	758	13,952
Current portion of long-term debt and other borrowings	9,352	9,658
Operating lease liabilities	78,656
Other liabilities	12,973	12,709
Total current liabilities	438,332	364,238
Deferred revenue, less current portion	34,142	32,341
Deferred income taxes	49,421	46,560
Long-term debt, less current portion	150,155	231
Deferred compensation plan liabilities, less current portion	30,431	34,079
Operating lease liabilities, less current portion	109,339
Other liabilities	10,118	20,082
Total liabilities	821,938	497,531
Shareholders’ equity:
Common stock, no par value; 100,000 shares authorized; 61,313 and 63,979 shares issued and outstanding at March 31, 2020, and September 30, 2019, at stated amount, respectively	511,023	498,433
Accumulated other comprehensive loss	(50,116)	(45,380)
Retained earnings	677,561	794,739
Total MAXIMUS shareholders' equity	1,138,468	1,247,792
Noncontrolling interests	0	409
Total equity	1,138,468	1,248,201
Total liabilities and equity	$ 1,960,406	$ 1,745,732

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable, current	$ 12,054	$ 5,382
Common stock, shares authorized	100,000	100,000
Common stock, shares outstanding	61,313	63,979
Common stock, shares issued	61,313	63,979

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operations:
Net income	$ 86,384	$ 117,489
Adjustments to reconcile net income to cash flows from operations:
Depreciation and amortization of property and equipment and capitalized software	31,218	22,407
Amortization of intangible assets	18,022	14,977
Deferred income taxes	3,038	17,764
Stock compensation expense	11,800	9,904
Change in assets and liabilities net of effects of business combinations
Accounts receivable — billed and billable	(52,870)	(72,720)
Accounts receivable — unbilled	2,289	9,189
Prepaid expenses and other current assets	4,262	(5,118)
Deferred contract costs	(497)	(5,415)
Accounts payable and accrued liabilities	22,322	42,080
Accrued compensation and benefits	3,839	(7,443)
Deferred revenue	5,300	4,435
Income taxes	(27,706)	(16,496)
Operating lease right-of-use assets and liabilities	166
Other assets and liabilities	1,705	(3,842)
Cash flows from operations	109,272	127,211
Cash flows from investing activities:
Purchases of property and equipment and capitalized software costs	(19,122)	(18,541)
Acquisitions of businesses, net of cash acquired	(2,551)	(421,809)
Maturities of short-term investments	0	19,996
Other	98	284
Cash used in investing activities	(21,575)	(420,070)
Cash flows from financing activities:
Cash dividends paid to MAXIMUS shareholders	(35,813)	(31,983)
Purchases of MAXIMUS common stock	(166,959)	(46,068)
Tax withholding related to RSU vesting	(10,614)	(8,915)
Borrowings under credit facility and other loan agreements	341,715	320,048
Repayment of credit facility and other long-term debt	(191,256)	(241,539)
Other	(652)	(133)
Cash used in financing activities	(63,579)	(8,590)
Effect of exchange rate changes on cash and cash equivalents	(1,868)	(632)
Net increase/(decrease) in cash, cash equivalents and restricted cash	22,250	(302,081)
Cash, cash equivalents and restricted cash, beginning of period	116,492	356,559
Cash, cash equivalents and restricted cash, end of period	$ 138,742	$ 54,478

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, 2018		64,371
Balance at Sep. 30, 2018	$ 1,086,419	$ 487,539	$ (36,953)	$ 633,281	$ 2,552
Increase (Decrease) in Shareholders' Equity
Net income	117,489			117,837	(348)
Foreign currency translation	(2,183)		(2,183)
Cash dividends	(32,116)			(31,983)	(133)
Dividends on RSUs		$ 826		(826)
Purchases of common stock (in shares)		(716)
Purchases of MAXIMUS common stock	(45,414)	$ (45,400)		(45,414)
Stock compensation expense	9,904	$ 9,904
RSUs vested (in shares)		156
Balance (in shares) at Mar. 31, 2019		63,811
Balance at Mar. 31, 2019	1,167,581	$ 498,269	(39,136)	705,824	2,624
Balance (in shares) at Dec. 31, 2018		63,717
Balance at Dec. 31, 2018	1,117,379	$ 492,938	(42,673)	664,332	2,782
Increase (Decrease) in Shareholders' Equity
Net income	61,766			61,924	(158)
Foreign currency translation	3,537		3,537
Cash dividends	(15,950)			(15,950)
Dividends on RSUs		$ 398		(398)
Purchases of common stock (in shares)		(62)
Purchases of MAXIMUS common stock	(4,084)			(4,084)
Stock compensation expense	4,933	$ 4,933
RSUs vested (in shares)		156
Balance (in shares) at Mar. 31, 2019		63,811
Balance at Mar. 31, 2019	$ 1,167,581	$ 498,269	(39,136)	705,824	2,624
Balance (in shares) at Sep. 30, 2019	63,979	63,979
Balance at Sep. 30, 2019	$ 1,248,201	$ 498,433	(45,380)	794,739	409
Increase (Decrease) in Shareholders' Equity
Net income	86,384			86,384
Foreign currency translation	(4,736)		(4,736)
Cash dividends	(36,222)			(35,813)	(409)
Dividends on RSUs		$ 790		(790)
Purchases of common stock (in shares)		(2,767)
Purchases of MAXIMUS common stock	(166,959)	$ (167,000)		(166,959)
Stock compensation expense	$ 11,800	$ 11,800
RSUs vested (in shares)		101
Balance (in shares) at Mar. 31, 2020	61,313	61,313
Balance at Mar. 31, 2020	$ 1,138,468	$ 511,023	(50,116)	677,561	0
Balance (in shares) at Dec. 31, 2019		63,953
Balance at Dec. 31, 2019	1,299,005	$ 504,184	(38,487)	833,308
Increase (Decrease) in Shareholders' Equity
Net income	27,650			27,650
Foreign currency translation	(11,629)		(11,629)
Cash dividends	(17,900)			(17,900)
Dividends on RSUs		$ 436		(436)
Purchases of common stock (in shares)		(2,741)
Purchases of MAXIMUS common stock	(165,061)			(165,061)
Stock compensation expense	$ 6,403	$ 6,403
RSUs vested (in shares)		101
Balance (in shares) at Mar. 31, 2020	61,313	61,313
Balance at Mar. 31, 2020	$ 1,138,468	$ 511,023	$ (50,116)	$ 677,561	$ 0

Organization and Basis of Prese

Organization and Basis of Presentation	6 Months Ended
	Mar. 31, 2020
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. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2019, 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. These financial statements should be read in conjunction with the consolidated audited financial statements and the notes thereto at September 30, 2019 and 2018, and for each of the three years ended September 30, 2019, included in our Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on November 26, 2019. 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. At each reporting period end, we make 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 expectations of the future that we believe to be reasonable. The economic and political impacts of the COVID-19 pandemic increases uncertainty, which has reduced our ability to use past results to estimate future performance. Accordingly, our estimates may be subject to greater volatility than has been the case in the past. • Our balance sheet includes goodwill valued at $585.8 million. This balance is allocated between reporting units, which are consistent with our three operating segments. Goodwill is not amortized but is tested for impairment when necessary and no less than once per year. We performed our last annual goodwill impairment test as of July 1, 2019. As of July 1, 2019, none of our reporting units showed any signs of impairment and all held a fair value estimated to be at least twice as high as their carrying value. We continue to monitor the fair value of our reporting units and, at this time, we do not believe any goodwill impairment has occurred. This is based upon a number of factors, including the long-term viability of our business and the creditworthiness of our customer base. • Our balance sheet includes a number of long-lived assets, including property and equipment, capitalized software, operating lease right-of-use assets, deferred contract costs and intangible assets. These assets are depreciated or amortized over their estimated useful economic lives but are subject to impairment if events indicate that the carrying amount may not be recoverable. At this time, there are no significant balances which we believe are not recoverable. • Our balance sheet includes $650.1 million of billed, billable and unbilled accounts receivable, net of reserves. We regularly evaluate this balance for recoverability and reserve those balances where we no longer believe that collection is probable. Bad debt expense has not historically been significant to our business due to the nature of our customers. During the three months ended March 31, 2020, we recorded bad debt expense of $7.8 million. We have reserved balances against customers who we believe are experiencing difficulties during the COVID-19 pandemic and may not be able to reimburse us for work performed. • As disclosed in "Note 4. Revenue Recognition", revenue for some our welfare-to-work contracts in the Outside the U.S. Segment is based upon achievement of future outcomes as defined in each contract. Specifically, we are paid as individuals attain employment goals, which may take many months to achieve. Revenue is recognized on these contracts over the period of performance. Employment markets worldwide have suffered a significant shock during the three months ended March 31, 2020 and many employment opportunities have been terminated or are no longer available. While we expect the volume of new program participants to increase as a result of disruption to employment markets, we believe that our program outcomes for program participants as of March 31, 2020 have been disrupted. Accordingly, we have adjusted revenue and the related unbilled receivables recorded in prior periods. During the three months ended March 31, 2020, we recorded adjustments of approximately $24 million to revenue from changes in estimates to our welfare-to-work contracts. This reduced our net income and diluted earnings per share by approximately $18 million and $0.28, respectively. • Many of our contracts in the United States are cost-plus contracts, where we are reimbursed for costs that are allowable, allocable and reasonable. Due to the COVID-19 pandemic, we are incurring incremental and unusual costs, including additional sick pay and idle labor for employees who are unable to perform services due to their health issues, child care issues or physical restrictions imposed on their workplace. Although the U.S. Federal Government, which provides the majority of our cost-plus contracts, has provided regular guidance, there is some uncertainty within other contracts as to recoverable costs. Changes in financial reporting Leases Effective October 1, 2019, we adopted ASU No. 2016-02, Leases (Topic 842) . The new standard requires that assets and liabilities arising under leases be recognized on the balance sheet, except for those with an initial term of less than 12 months. We adopted this standard using a modified retrospective approach. Accordingly, we did not recast prior period financial information. Certain elections were made in adopting the standard. • We elected to use the package of practical expedients which, among other things, allows us to not reassess historical lease classification. • We do not separate lease and non-lease components for all classes of leases, which allows us to account for a lease as a single component. • We used the optional transition method, which did not require us to recast our comparative periods. • We did not use the hindsight practical expedients, which would have allowed us to use hindsight in determining the reasonably certain lease term. • We did not adjust our accounting for leases with an initial term of twelve months or less. Upon adopting Topic 842, we recognized a lease liability of $214.5 million, reflecting the present value of the future remaining minimum lease payments. Changes to our opening balance sheet are summarized below. There was no cumulative impact to our retained earnings and the changes did not cause any material changes in our statements of operations or our statements of cash flows. The adoption of Topic 842 does not affect our compliance with our existing contracts, including our credit facility. (dollars in thousands) Balance at September 30, 2019 Adjustments due to adoption of new standard Opening balance at October 1, 2019 Assets Prepaid expenses and other current assets $ 62,481 $ (6,131) $ 56,350 Operating lease right-of-use assets — 206,314 206,314 Liabilities and shareholders' equity Accounts payable and accrued expenses 177,786 (5,250) 172,536 Operating lease liabilities — 88,276 88,276 Other current liabilities 12,709 (648) 12,061 Operating lease liabilities, net of current portion — 126,197 126,197 Other long-term liabilities 20,082 (8,392) 11,690 At the adoption of Topic 842 , the Company recognized deferred tax assets and liabilities corresponding to the operating lease liabilities and operating right-of-use assets, respectively. These balances offset each other and no net effect resulted from this change. Additional information and disclosures relating to this change are included within "Note 3. Leases." Forthcoming changes In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This accounting guidance requires customers in cloud-computing arrangements to identify and defer certain implementation costs in a manner broadly consistent with that of existing guidance on the costs to develop or obtain internal-use software. We will adopt this guidance on October 1, 2020. We may adopt this guidance using either a prospective or retrospective methodology. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This update introduces a new model for recognizing credit losses on financial instruments, including losses on accounts receivable. We will adopt this guidance on October 1, 2020 and any changes will be recorded as a cumulative adjustment to retained earnings. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. 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 any subsequent calculation of an impairment charge. We will adopt this guidance on October 1, 2020. The effect of this new standard will depend upon the outcome of future goodwill impairment tests. Other recent accounting pronouncements are not expected to have a material effect on our financial statements.

Segment Information

Segment Information	6 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Information	Segment Information The table below provides certain financial information for each of our business segments. We operate our business through three segments. • Our U.S. Health and Human Services Segment provides a variety of business process services such as program administration, appeals and assessments services, and related consulting work for U.S. state and local government programs. These services support a variety of programs including the Affordable Care Act (ACA), Medicaid and the Children’s Health Insurance Program (CHIP). We also serve as administrators in state-based welfare-to-work and child support programs. • Our U.S. Federal Services Segment provides business process solutions, including program administration, appeals and assessment services, as well as system and software development and maintenance services for various U.S. federal civilian programs. This segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio and continues to be managed within this segment. • Our Outside the U.S. Segment provides business process solutions for governments and commercial clients outside the U.S., including health and disability assessments, program administration and case management for employment services and other work-support programs. We deliver services in the United Kingdom, including the Health Assessment Advisory Service (HAAS), the Work & Health Programme and Fair Start; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; Italy, Saudi Arabia and Singapore. Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 % (1) 2019 % (1) 2020 % (1) 2019 % (1) Revenue: U.S. Health & Human Services $ 308,698 $ 290,737 $ 620,979 $ 584,950 U.S. Federal Services 393,391 289,736 759,962 506,723 Outside the U.S. 116,046 156,047 255,423 309,466 Total $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 Gross profit: U.S. Health & Human Services $ 85,454 27.7% $ 86,260 29.7% $ 175,044 28.2% $ 174,291 29.8% U.S. Federal Services 76,958 19.6% 60,696 20.9% 147,779 19.4% 108,681 21.4% Outside the U.S. (9,314) (8.0)% 22,466 14.4% 5,725 2.2% 45,715 14.8% Total $ 153,098 18.7% $ 169,422 23.0% $ 328,548 20.1% $ 328,687 23.5% Selling, general & administrative expense: U.S. Health & Human Services $ 39,239 12.7% $ 29,400 10.1% $ 70,637 11.4% $ 61,539 10.5% U.S. Federal Services 46,726 11.9% 31,104 10.7% 85,965 11.3% 57,736 11.4% Outside the U.S. 17,404 15.0% 17,992 11.5% 33,457 13.1% 36,800 11.9% Other (2) 3,484 NM (394) NM 4,021 NM 1,698 NM Total $ 106,853 13.1% $ 78,102 10.6% $ 194,080 11.9% $ 157,773 11.3% Operating income: U.S. Health & Human Services $ 46,215 15.0% $ 56,860 19.6% $ 104,407 16.8% $ 112,752 19.3% U.S. Federal Services 30,232 7.7% 29,592 10.2% 61,814 8.1% 50,945 10.1% Outside the U.S. (26,718) (23.0)% 4,474 2.9% (27,732) (10.9)% 8,915 2.9% Amortization of intangible assets (8,934) NM (9,519) NM (18,022) NM (14,977) NM Other (3,484) NM 394 NM (4,021) NM (1,698) NM Total $ 37,311 4.6% $ 81,801 11.1% $ 116,446 7.1% $ 155,937 11.1% (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment, including the costs for actual and potential acquisitions of other businesses. Identifiable assets for the segments are shown below (in thousands): March 31, 2020 September 30, 2019 U.S. Health & Human Services $ 580,487 $ 500,641 U.S. Federal Services 939,824 795,553 Outside the U.S. 210,095 234,769 Corporate 230,000 214,769 Total $ 1,960,406 $ 1,745,732

Leases

Leases	6 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Leases Beginning October 1, 2019, we identify contracts which are, or contain, leases where a contract allows us the right to control identified property or equipment for a period of time in return for consideration. Our leases are typically for office space or facilities, as well as some equipment leases. Where contracts include both lease and non-lease components, we do not typically separate the non-lease components in our accounting. At the inception of a lease, we recognize a liability for future minimum lease payments based upon the present value of those payments. • In identifying our future minimum lease payments, we do not include variable lease costs, such as those for maintenance or utilities. These are recorded as lease expenses in the period in which they are incurred. • In identifying future lease payments, we do not include short-term leases, identified as those with an initial term of twelve months or less. • Lease options are included within our lease liability only where it is reasonably certain that we will utilize those periods of the lease and incur the related costs. • In calculating the fair value of our lease liability, we utilize an estimate of our collateralized incremental borrowing rate. This estimate is based upon publicly-available information adjusted for company-specific, country-specific and lease-specific factors. The weighted average incremental borrowing rate utilized at March 31, 2020, is 3.7%. Over the course of a lease, the lease liability is reduced as scheduled lease payments are made and increased as the implied interest charges are added. Our right-of-use asset is based upon the lease liability at the contract inception but is adjusted over the life of the lease by lease prepayments, additional costs or lease incentives. The right-of-use asset is amortized on a straight-line basis over the lease term, offset by the interest accretion recorded on the lease liability. Lease expense is recorded within our consolidated statements of operations based upon the nature of the assets. Where assets are used to directly serve our customers, such as facilities dedicated to customer contracts, lease costs are recorded in "cost of revenue." Facilities and assets which serve management and support functions are expensed through "selling, general and administrative expenses." Costs recorded in the three and six months ended March 31, 2020, are summarized below. (dollars in thousands) Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease cost $ 23,437 $ 48,687 Short-term lease cost 1,454 3,564 Variable lease cost 1,954 5,288 Total operating lease costs $ 26,845 $ 57,539 Future minimum lease payments for noncancelable operating leases as of March 31, 2020 are shown below. (dollars in thousands) Office space Equipment Total For the years ended September 30, Remainder of 2020 $ 42,136 $ 3,832 $ 45,968 2021 60,372 6,295 66,667 2022 39,752 2,353 42,105 2023 26,490 98 26,588 2024 11,193 40 11,233 Thereafter 6,989 — 6,989 Total minimum lease payments $ 186,932 $ 12,618 $ 199,550 Less imputed interest (11,183) (372) (11,555) Total lease liabilities $ 175,749 $ 12,246 $ 187,995 Our weighted average remaining lease term at March 31, 2020 is 3.0 years. For the six months ended March 31, 2020, we made cash payments of $55.9 million for amounts included in our lease liabilities. New or amended leases resulted in additional right-of-use assets of $24.7 million.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition We recognize revenue as, or when, we satisfy performance obligations under a contract. The majority of our contracts have performance obligations which are satisfied over time. In most cases, we view our performance obligations as promises to transfer a series of distinct services to our customer that are substantially the same and which have the same pattern of service. We recognize revenue over the performance period as a customer receives the benefits of our services. Disaggregation of revenue In addition to our segment reporting, we disaggregate our revenues by service, contract type, customer type and geography. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results which is further discussed in "Note 2. Segment information." By operating segment and service Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 Program administration $ 236,436 $ 219,732 $ 473,343 $ 438,705 Assessments and appeals 29,916 33,331 63,747 70,552 Workforce and children services 28,734 23,898 58,120 47,801 Other 13,612 13,776 25,769 27,892 Total U.S. Health and Human Services $ 308,698 $ 290,737 $ 620,979 $ 584,950 Program administration $ 304,367 $ 209,996 $ 586,055 $ 350,117 Technology solutions 44,508 37,993 88,114 76,876 Assessments and appeals 44,516 41,747 85,793 79,730 Total U.S. Federal Services $ 393,391 $ 289,736 $ 759,962 $ 506,723 Workforce and children services $ 34,683 $ 69,759 $ 91,922 $ 143,037 Assessments and appeals 62,286 67,771 124,929 130,081 Program administration 16,945 15,922 34,039 31,242 Other 2,132 2,595 4,533 5,106 Total Outside the U.S. $ 116,046 $ 156,047 $ 255,423 $ 309,466 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 By contract type Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 Performance-based $ 275,669 $ 261,592 $ 568,427 $ 574,479 Cost-plus 398,973 298,133 761,784 473,431 Fixed price 100,504 139,871 219,720 287,022 Time and materials 42,989 36,924 86,433 66,207 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 By customer type Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 New York State government agencies $ 100,222 $ 89,858 $ 197,445 $ 181,570 Other U.S. state government agencies 217,195 197,870 427,081 396,772 Total U.S. state government agencies 317,417 287,728 624,526 578,342 United States Federal Government agencies 374,909 270,623 726,742 468,901 International government agencies 107,460 146,292 238,276 289,073 Other, including local municipalities and commercial customers 18,349 31,877 46,820 64,823 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 By geography Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 United States of America $ 702,089 $ 580,473 $ 1,380,941 $ 1,091,673 United Kingdom 63,722 78,334 136,724 151,752 Australia 24,540 50,997 61,975 104,370 Rest of world 27,784 26,716 56,724 53,344 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 Contract balances Differences in timing between revenue recognition and cash collection result in contract assets and contract liabilities. We classify these assets as accounts receivable — billed and billable and unbilled receivables; the liabilities are classified as deferred revenue. In many contracts, we bill our customers on a monthly basis shortly after the month end for work performed in that month. Funds are considered collectible and are included within accounts receivable — billed and billable. Exceptions to this pattern will arise for various reasons, including those listed below. • Under cost-plus contracts, we are typically required to estimate a contract’s share of our general and administrative expenses. This share is based upon estimates of total costs which may vary over time. We typically invoice our customers at an agreed provisional billing rate which may differ from actual rates incurred. If our actual rates are higher than the provisional billing rates, an asset is recorded for this variance; if the provisional billing rates are higher than our actual rates, we record a liability. • Certain contracts include retainage balances, whereby revenue is earned but cash payments are held back by the customer for a period of time, typically to allow the customer to confirm the objective criteria laid out by the contract have been met. This balance is classified as accounts receivable - unbilled until restrictions on billing have been lifted. • In certain contracts, we may receive funds from our customers prior to performing operations. These funds are typically referred to as “set-up costs” and reflect the need for us to make investments in infrastructure prior to providing a service. This investment in infrastructure is not a performance obligation which is distinct from the service that is subsequently provided and, as a result, revenue is not recognized based upon the establishment of this infrastructure, but rather over the course of the contractual relationship. The funds are initially recorded as deferred revenue and recognized over the term of the contract. Other contracts may not include set-up fees but will provide higher fees in earlier periods of the contract. The premium on these fees is deferred. • Some of our contracts, notably our welfare-to-work contracts in the Outside the U.S. Segment, include payments for outcomes, such as job retention, which occur over several months. We are required to estimate these outcome fees ahead of their realization and recognize this estimated fee over the period of delivery. Of our revenue for the three and the six months ended March 31, 2020, approximately $22.1 million and $40.1 million were from cash payments made to us prior to October 1, 2019. For the three and six months ended March 31, 2019, we recognized revenue of $10.2 million and $32.0 million from payments made prior to October 1, 2018. Contract estimates We are required to use estimates in recognizing revenue from some of our contracts. As discussed in "Note 1. Organization and Basis of Presentation", the calculation of these estimates has been complicated by the COVID-19 pandemic, which has reduced our ability to use past results to estimate future performance. Some of our performance-based contract revenue is recognized based upon future outcomes defined in each contract. This is the case in many of our welfare-to-work contracts in the Outside the U.S. Segment, where we are paid as individuals attain employment goals, which may take many months to achieve. We recognize revenue on these contracts over the period of performance. Our estimates vary from contract to contract but may include estimates of the number of participants, the length of the contract and the participants reaching employment milestones. We are required to estimate these outcome fees ahead of their realization and recognize this estimated fee over the period of delivery. In almost all of the jurisdictions in which we operate, the employment markets have experienced significant changes due to the COVID-19 pandemic. For our existing program participants, many employment opportunities have been terminated or are no longer available. Our volume of new program participants is expected to increase but it is unclear as to when these populations will be in a position to seek employment in many industries which have been curtailed by the COVID-19 pandemic. In some cases, we anticipate that we may be unable to place individuals in employment in the short-term. Other performance-based contracts with future outcomes include those where we recognize an average effective rate per participant based upon the total volume of expected participants. In this instance, we are required to estimate the amount of discount applied to determine the average rate of revenue per participant. Our revised estimates of participant numbers are based upon our updated evaluation of probable future volumes. We are required to use estimates in recognizing certain revenue. Where we have changes to our estimates, these are recognized on a cumulative catch-up basis. In the three and six months ended March 31, 2020, we reported reductions in revenue of $6.3 million and $7.7 million from changes in estimates as of September 30, 2019. In the three and six months ended March 31, 2019, we reported reductions in revenue of $6.5 million and $8.0 million, respectively, from changes in estimates. Deferred contract costs For many contracts, we incur significant incremental costs at the beginning of an arrangement. Typically, these costs relate to the establishment of infrastructure which we utilize to satisfy our performance obligations with the contract. We report these costs as deferred contract costs and amortize them on a straight-line basis over the shorter of the useful economic life of the asset or the anticipated term of the contract. Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 Deferred contract cost capitalization $ 2,666 $ 5,113 $ 3,995 $ 8,212 Deferred contract cost amortization 1,321 1,478 3,497 2,820 This amortization was recorded within our "cost of revenue" on our consolidated statements of operations. Remaining performance obligations At March 31, 2020, we had approximately $270 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 55% of this balance within the next 12 months. This balance excludes contracts with an original duration of twelve months or less, including contracts with a penalty-free termination for convenience clause, and any variable consideration which is allocated entirely to future performance obligations including variable transaction fees or fees tied directly to costs incurred.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Mar. 31, 2020
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 March 31, Six Months Ended March 31, (shares in thousands) 2020 2019 2020 2019 Basic weighted average shares outstanding 63,934 64,369 64,264 64,600 Dilutive effect of unvested RSUs 191 274 182 217 Denominator for diluted earnings per share 64,125 64,643 64,446 64,817 Our dilutive earnings per share for the three and six months ended March 31, 2020, excludes any effect from approximately 280,000 and 250,000 unvested restricted stock units, respectively, as adding them to our calculation would have been antidilutive. There were no antidilutive awards in the three and six months ended March 31, 2019.

Acquisitions

Acquisitions	6 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Acquisitions	Acquisitions On November 16, 2018, we acquired General Dynamics Information Technology's citizen engagement centers business for $430.7 million. This acquisition strengthens our position in the administration of federal government programs and the business was integrated into our U.S. Federal Services Segment. We completed our allocation of the purchase price to the assets acquired and liabilities assumed in September 2019, including goodwill of $184.6 million and intangible assets of $122.3 million. On August 16, 2019, we acquired 100% of the share capital of GT Hiring Solutions (2005) Inc. (GT Hiring) for $6.2 million (8.2 million Canadian Dollars). GT Hiring provides employment services in British Columbia. We acquired GT Hiring to enhance the reach and capabilities of our Canadian employment services and, accordingly, the business has been integrated into our Outside the U.S. Segment. We are still in the process of finalizing the allocation of assets acquired and liabilities assumed. We recorded estimated goodwill and intangible assets balances of $1.5 million and $2.7 million, respectively, related to this acquisition. The goodwill represents the assembled workforce and enhanced knowledge, experience and reputation we have obtained from the acquisition and will be deductible for tax purposes. The intangible assets represent customer relationships, which will be amortized over seven years. On February 28, 2020, we acquired 100% of the share capital of InjuryNet Australia Pty Limited (InjuryNet) for an estimated purchase price of $3.7 million (5.6 million Australian Dollars). The purchase price is subject to adjustment for a working capital true-up. InjuryNet provides workplace medical services in Australia. The business has been integrated into our Outside the U.S. Segment. We are still in the process of finalizing allocation of assets acquired and liabilities assumed.

Supplemental Disclosures

Supplemental Disclosures	6 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Disclosures	Supplemental Disclosures Under a resolution adopted in March 2020, the Board of Directors authorized the purchase, at management's discretion, of up to $200 million of our common stock. This supplemented a similar resolution adopted in June 2018. During the six months ended March 31, 2020, we purchased approximately 2,767,000 of our common shares at a cost of $167.0 million. During the six months ended March 31, 2019, we acquired approximately 716,000 common shares at a cost of $45.4 million. At March 31, 2020, $150.0 million remained available for future stock purchases. During the six months ended March 31, 2020, we granted 316,000 restricted stock units to our board of directors and employees. These awards will vest ratably over one five Our deferred compensation plan uses both mutual fund and life insurance investments to fund its obligations. The mutual funds are recorded at fair value, based upon quoted prices in active markets, and the life insurance investments at cash surrender value; changes in value are reported in our consolidated statements of operations. At March 31, 2020, the deferred compensation plan held $18.4 million of the mutual fund investments. 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 debt balances are principally from credit facilities which can be utilized and repaid as required and whose rates are based upon prevailing market conditions; accordingly, we believe the balance disclosed is consistent with fair value. Our accounts receivable billed and billable balance includes both amounts invoiced and amounts that are ready to be invoiced where the funds are collectible within standard invoice terms. Our accounts receivable unbilled balance includes balances where revenue has been earned but no invoice was issued on or before March 31, 2020. Restricted cash represents funds which are held in our bank accounts but which we are precluded from using for general business needs through contractual requirements; these requirements include serving as collateral for lease, credit card or letter of credit arrangements or where we hold funds on behalf of clients. Restricted cash is included within "prepaid expenses and other assets" on our balance sheet and is included within "cash, cash equivalents and restricted cash" in our consolidated statements of cash flows. A reconciliation of these balances is shown below. Balance as of (dollars in thousands) March 30, September 30, 2019 March 31, September 30, 2018 Cash and cash equivalents $ 126,257 $ 105,565 $ 46,799 $ 349,245 Restricted cash (recorded within "other current assets") 12,485 10,927 7,679 7,314 Cash, cash equivalents and restricted cash 138,742 116,492 54,478 356,559 During the six months ended March 31, 2020 and 2019, we made interest payments of $0.5 million and $1.8 million, respectively. During the six months ended March 31, 2020 and 2019, we made income tax payments of $52.9 million and $37.2 million, respectively.

Litigation

Litigation	6 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation We are subject to audits, investigations and reviews relating to compliance with the laws and regulations that govern our role as a contractor to agencies and departments of the United States Federal Government, state, local and foreign governments, and otherwise in connection with performing services in countries outside of the U.S. Adverse findings could lead to criminal, civil or administrative proceedings, and we could be faced with penalties, fines, suspension or debarment. Adverse findings could also have a material adverse effect on us because of our reliance on government contracts. We are subject to periodic audits by federal, state, local and foreign governments for taxes. We are also involved in various claims, arbitrations and lawsuits arising in the normal conduct of our business. These include but are not limited to bid protests, employment matters, contractual disputes and charges before administrative agencies. Although we can give no assurance, based upon our evaluation and taking into account the advice of legal counsel, we do not believe that the outcome of any existing matter would likely have a material adverse effect on our consolidated financial position, results of operations or cash flows. Medicaid claims The Centers for Medicare and Medicaid Services (CMS) has asserted two disallowances against a state Medicaid agency totaling approximately $31 million. From 2004 through 2009, we had a contract with the state agency in support of its school-based Medicaid claims. We entered into separate agreements with the school districts under which we assisted the districts with preparing and submitting claims to the state Medicaid agency which, in turn, submitted claims for reimbursement to CMS. The state has asserted that its agreement with us requires us to reimburse the state for the amounts owed to CMS. However, our agreements with the school districts require them to reimburse us for such amounts, and therefore we believe the school districts are responsible for any amounts that ultimately must be refunded to CMS. Although it is reasonably possible that a court could conclude we are responsible for the full balance of the disallowances, we believe our exposure in this matter is limited to our fees

Subsequent Events

Subsequent Events	6 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 3, 2020, our Board of Directors declared a quarterly cash dividend of $0.28 for each share of our common stock outstanding. The dividend is payable on May 29, 2020, to shareholders of record on May 15, 2020. Based upon the number of shares outstanding, we anticipate a cash payment of approximately $17 million. On May 1, 2020, we sold a subsidiary that holds a contract that we were required to divest to avoid a conflict resulting from a new contract. The purchase price was $3.25 million.

Organization and Basis of Pre_2

Organization and Basis of Presentation (Policies)	6 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended March 31, 2020, are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2019, 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.
Estimates	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. At each reporting period end, we make 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.
Leases	Leases Effective October 1, 2019, we adopted ASU No. 2016-02, Leases (Topic 842) . The new standard requires that assets and liabilities arising under leases be recognized on the balance sheet, except for those with an initial term of less than 12 months. We adopted this standard using a modified retrospective approach. Accordingly, we did not recast prior period financial information. Certain elections were made in adopting the standard. • We elected to use the package of practical expedients which, among other things, allows us to not reassess historical lease classification. • We do not separate lease and non-lease components for all classes of leases, which allows us to account for a lease as a single component. • We used the optional transition method, which did not require us to recast our comparative periods. • We did not use the hindsight practical expedients, which would have allowed us to use hindsight in determining the reasonably certain lease term. • We did not adjust our accounting for leases with an initial term of twelve months or less.
Changes in financial reporting	Changes in financial reporting Leases Effective October 1, 2019, we adopted ASU No. 2016-02, Leases (Topic 842) . The new standard requires that assets and liabilities arising under leases be recognized on the balance sheet, except for those with an initial term of less than 12 months. We adopted this standard using a modified retrospective approach. Accordingly, we did not recast prior period financial information. Certain elections were made in adopting the standard. • We elected to use the package of practical expedients which, among other things, allows us to not reassess historical lease classification. • We do not separate lease and non-lease components for all classes of leases, which allows us to account for a lease as a single component. • We used the optional transition method, which did not require us to recast our comparative periods. • We did not use the hindsight practical expedients, which would have allowed us to use hindsight in determining the reasonably certain lease term. • We did not adjust our accounting for leases with an initial term of twelve months or less. Upon adopting Topic 842, we recognized a lease liability of $214.5 million, reflecting the present value of the future remaining minimum lease payments. Changes to our opening balance sheet are summarized below. There was no cumulative impact to our retained earnings and the changes did not cause any material changes in our statements of operations or our statements of cash flows. The adoption of Topic 842 does not affect our compliance with our existing contracts, including our credit facility. (dollars in thousands) Balance at September 30, 2019 Adjustments due to adoption of new standard Opening balance at October 1, 2019 Assets Prepaid expenses and other current assets $ 62,481 $ (6,131) $ 56,350 Operating lease right-of-use assets — 206,314 206,314 Liabilities and shareholders' equity Accounts payable and accrued expenses 177,786 (5,250) 172,536 Operating lease liabilities — 88,276 88,276 Other current liabilities 12,709 (648) 12,061 Operating lease liabilities, net of current portion — 126,197 126,197 Other long-term liabilities 20,082 (8,392) 11,690 At the adoption of Topic 842 , the Company recognized deferred tax assets and liabilities corresponding to the operating lease liabilities and operating right-of-use assets, respectively. These balances offset each other and no net effect resulted from this change. Additional information and disclosures relating to this change are included within "Note 3. Leases." Forthcoming changes In August 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This accounting guidance requires customers in cloud-computing arrangements to identify and defer certain implementation costs in a manner broadly consistent with that of existing guidance on the costs to develop or obtain internal-use software. We will adopt this guidance on October 1, 2020. We may adopt this guidance using either a prospective or retrospective methodology. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This update introduces a new model for recognizing credit losses on financial instruments, including losses on accounts receivable. We will adopt this guidance on October 1, 2020 and any changes will be recorded as a cumulative adjustment to retained earnings. We are currently assessing the future impact of this update on our consolidated financial statements and related disclosures. 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 any subsequent calculation of an impairment charge. We will adopt this guidance on October 1, 2020. The effect of this new standard will depend upon the outcome of future goodwill impairment tests.

Organization and Basis of Pre_3

Organization and Basis of Presentation (Tables)	6 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Adoption of Topic 842	Changes to our opening balance sheet are summarized below. There was no cumulative impact to our retained earnings and the changes did not cause any material changes in our statements of operations or our statements of cash flows. The adoption of Topic 842 does not affect our compliance with our existing contracts, including our credit facility. (dollars in thousands) Balance at September 30, 2019 Adjustments due to adoption of new standard Opening balance at October 1, 2019 Assets Prepaid expenses and other current assets $ 62,481 $ (6,131) $ 56,350 Operating lease right-of-use assets — 206,314 206,314 Liabilities and shareholders' equity Accounts payable and accrued expenses 177,786 (5,250) 172,536 Operating lease liabilities — 88,276 88,276 Other current liabilities 12,709 (648) 12,061 Operating lease liabilities, net of current portion — 126,197 126,197 Other long-term liabilities 20,082 (8,392) 11,690

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Mar. 31, 2020
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. We operate our business through three segments. • Our U.S. Health and Human Services Segment provides a variety of business process services such as program administration, appeals and assessments services, and related consulting work for U.S. state and local government programs. These services support a variety of programs including the Affordable Care Act (ACA), Medicaid and the Children’s Health Insurance Program (CHIP). We also serve as administrators in state-based welfare-to-work and child support programs. • Our U.S. Federal Services Segment provides business process solutions, including program administration, appeals and assessment services, as well as system and software development and maintenance services for various U.S. federal civilian programs. This segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio and continues to be managed within this segment. • Our Outside the U.S. Segment provides business process solutions for governments and commercial clients outside the U.S., including health and disability assessments, program administration and case management for employment services and other work-support programs. We deliver services in the United Kingdom, including the Health Assessment Advisory Service (HAAS), the Work & Health Programme and Fair Start; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; Italy, Saudi Arabia and Singapore. Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 % (1) 2019 % (1) 2020 % (1) 2019 % (1) Revenue: U.S. Health & Human Services $ 308,698 $ 290,737 $ 620,979 $ 584,950 U.S. Federal Services 393,391 289,736 759,962 506,723 Outside the U.S. 116,046 156,047 255,423 309,466 Total $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 Gross profit: U.S. Health & Human Services $ 85,454 27.7% $ 86,260 29.7% $ 175,044 28.2% $ 174,291 29.8% U.S. Federal Services 76,958 19.6% 60,696 20.9% 147,779 19.4% 108,681 21.4% Outside the U.S. (9,314) (8.0)% 22,466 14.4% 5,725 2.2% 45,715 14.8% Total $ 153,098 18.7% $ 169,422 23.0% $ 328,548 20.1% $ 328,687 23.5% Selling, general & administrative expense: U.S. Health & Human Services $ 39,239 12.7% $ 29,400 10.1% $ 70,637 11.4% $ 61,539 10.5% U.S. Federal Services 46,726 11.9% 31,104 10.7% 85,965 11.3% 57,736 11.4% Outside the U.S. 17,404 15.0% 17,992 11.5% 33,457 13.1% 36,800 11.9% Other (2) 3,484 NM (394) NM 4,021 NM 1,698 NM Total $ 106,853 13.1% $ 78,102 10.6% $ 194,080 11.9% $ 157,773 11.3% Operating income: U.S. Health & Human Services $ 46,215 15.0% $ 56,860 19.6% $ 104,407 16.8% $ 112,752 19.3% U.S. Federal Services 30,232 7.7% 29,592 10.2% 61,814 8.1% 50,945 10.1% Outside the U.S. (26,718) (23.0)% 4,474 2.9% (27,732) (10.9)% 8,915 2.9% Amortization of intangible assets (8,934) NM (9,519) NM (18,022) NM (14,977) NM Other (3,484) NM 394 NM (4,021) NM (1,698) NM Total $ 37,311 4.6% $ 81,801 11.1% $ 116,446 7.1% $ 155,937 11.1% (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment, including the costs for actual and potential acquisitions of other businesses.
Schedule of identifiable assets by segment	Identifiable assets for the segments are shown below (in thousands): March 31, 2020 September 30, 2019 U.S. Health & Human Services $ 580,487 $ 500,641 U.S. Federal Services 939,824 795,553 Outside the U.S. 210,095 234,769 Corporate 230,000 214,769 Total $ 1,960,406 $ 1,745,732

Leases (Tables)

Leases (Tables)	6 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Lease Costs	Costs recorded in the three and six months ended March 31, 2020, are summarized below. (dollars in thousands) Three Months Ended March 31, 2020 Six Months Ended March 31, 2020 Operating lease cost $ 23,437 $ 48,687 Short-term lease cost 1,454 3,564 Variable lease cost 1,954 5,288 Total operating lease costs $ 26,845 $ 57,539
Future Minimum Lease Payments	Future minimum lease payments for noncancelable operating leases as of March 31, 2020 are shown below. (dollars in thousands) Office space Equipment Total For the years ended September 30, Remainder of 2020 $ 42,136 $ 3,832 $ 45,968 2021 60,372 6,295 66,667 2022 39,752 2,353 42,105 2023 26,490 98 26,588 2024 11,193 40 11,233 Thereafter 6,989 — 6,989 Total minimum lease payments $ 186,932 $ 12,618 $ 199,550 Less imputed interest (11,183) (372) (11,555) Total lease liabilities $ 175,749 $ 12,246 $ 187,995

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	By operating segment and service Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 Program administration $ 236,436 $ 219,732 $ 473,343 $ 438,705 Assessments and appeals 29,916 33,331 63,747 70,552 Workforce and children services 28,734 23,898 58,120 47,801 Other 13,612 13,776 25,769 27,892 Total U.S. Health and Human Services $ 308,698 $ 290,737 $ 620,979 $ 584,950 Program administration $ 304,367 $ 209,996 $ 586,055 $ 350,117 Technology solutions 44,508 37,993 88,114 76,876 Assessments and appeals 44,516 41,747 85,793 79,730 Total U.S. Federal Services $ 393,391 $ 289,736 $ 759,962 $ 506,723 Workforce and children services $ 34,683 $ 69,759 $ 91,922 $ 143,037 Assessments and appeals 62,286 67,771 124,929 130,081 Program administration 16,945 15,922 34,039 31,242 Other 2,132 2,595 4,533 5,106 Total Outside the U.S. $ 116,046 $ 156,047 $ 255,423 $ 309,466 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 By contract type Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 Performance-based $ 275,669 $ 261,592 $ 568,427 $ 574,479 Cost-plus 398,973 298,133 761,784 473,431 Fixed price 100,504 139,871 219,720 287,022 Time and materials 42,989 36,924 86,433 66,207 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 By customer type Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 New York State government agencies $ 100,222 $ 89,858 $ 197,445 $ 181,570 Other U.S. state government agencies 217,195 197,870 427,081 396,772 Total U.S. state government agencies 317,417 287,728 624,526 578,342 United States Federal Government agencies 374,909 270,623 726,742 468,901 International government agencies 107,460 146,292 238,276 289,073 Other, including local municipalities and commercial customers 18,349 31,877 46,820 64,823 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139 By geography Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 United States of America $ 702,089 $ 580,473 $ 1,380,941 $ 1,091,673 United Kingdom 63,722 78,334 136,724 151,752 Australia 24,540 50,997 61,975 104,370 Rest of world 27,784 26,716 56,724 53,344 Total revenue $ 818,135 $ 736,520 $ 1,636,364 $ 1,401,139
Deferred Contract Cost	Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2020 2019 2020 2019 Deferred contract cost capitalization $ 2,666 $ 5,113 $ 3,995 $ 8,212 Deferred contract cost amortization 1,321 1,478 3,497 2,820

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Weighted average number of shares used to compute earnings per share	The weighted average number of shares outstanding used to compute earnings per share was as follows: Three Months Ended March 31, Six Months Ended March 31, (shares in thousands) 2020 2019 2020 2019 Basic weighted average shares outstanding 63,934 64,369 64,264 64,600 Dilutive effect of unvested RSUs 191 274 182 217 Denominator for diluted earnings per share 64,125 64,643 64,446 64,817

Supplemental Disclosures (Table

Supplemental Disclosures (Tables)	6 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Cash and Cash Equivalents	A reconciliation of these balances is shown below. Balance as of (dollars in thousands) March 30, September 30, 2019 March 31, September 30, 2018 Cash and cash equivalents $ 126,257 $ 105,565 $ 46,799 $ 349,245 Restricted cash (recorded within "other current assets") 12,485 10,927 7,679 7,314 Cash, cash equivalents and restricted cash 138,742 116,492 54,478 356,559
Restrictions on Cash and Cash Equivalents	A reconciliation of these balances is shown below. Balance as of (dollars in thousands) March 30, September 30, 2019 March 31, September 30, 2018 Cash and cash equivalents $ 126,257 $ 105,565 $ 46,799 $ 349,245 Restricted cash (recorded within "other current assets") 12,485 10,927 7,679 7,314 Cash, cash equivalents and restricted cash 138,742 116,492 54,478 356,559

Organization and Basis of Pre_4

Organization and Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020USD ($)$ / shares	Mar. 31, 2020USD ($)segment	Oct. 01, 2019USD ($)	Sep. 30, 2019USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Goodwill	$ 585,772	$ 585,772		$ 584,469
Billed, billable and unbilled accounts receivable	650,100	$ 650,100
Number of operating segments | segment		3
Bad debt expense	7,800
Reduction of revenue	(24,000)
Reduction of net income	$ (18,000)
Reduction of diluted earnings per share | $ / shares	$ (0.28)
Total lease liabilities	$ 187,995	$ 187,995
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total lease liabilities			$ 214,500

Organization and Basis of Pre_5

Organization and Basis of Presentation - Changes Due to Adoption of Topic 842 (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Oct. 01, 2019	Sep. 30, 2019
ASSETS
Prepaid expenses and other current assets	$ 53,257	$ 56,350	$ 62,481
Operating lease right-of-use assets	179,701	206,314
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable and accrued liabilities	191,505	172,536	177,786
Operating lease liabilities	78,656	88,276
Other liabilities	12,973	12,061	12,709
Operating lease liabilities, less current portion	109,339	126,197
Other liabilities	$ 10,118	11,690	$ 20,082
Accounting Standards Update 2016-02
ASSETS
Prepaid expenses and other current assets		(6,131)
Operating lease right-of-use assets		206,314
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable and accrued liabilities		(5,250)
Operating lease liabilities		88,276
Other liabilities		(648)
Operating lease liabilities, less current portion		126,197
Other liabilities		$ (8,392)

Segment Information - Financial

Segment Information - Financial information by segment (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Mar. 31, 2020USD ($)segment	Mar. 31, 2019USD ($)
Financial information for each of the Company's business segments
Number of operating segments | segment			3
Revenue:
Revenue	$ 818,135	$ 736,520	$ 1,636,364	$ 1,401,139
Gross profit:
Gross profit	$ 153,098	$ 169,422	$ 328,548	$ 328,687
Gross profit (as a percent)	18.70%	23.00%	20.10%	23.50%
Selling, general & administrative expense:
Selling, general and administrative expenses	$ 106,853	$ 78,102	$ 194,080	$ 157,773
Selling, general, and administrative expense (as a percent)	13.10%	10.60%	11.90%	11.30%
Operating income:
Operating income	$ 37,311	$ 81,801	$ 116,446	$ 155,937
Operating income (as a percent)	4.60%	11.10%	7.10%	11.10%
Amortization of intangible assets	$ (8,934)	$ (9,519)	$ (18,022)	$ (14,977)
Segment Reconciling Items
Selling, general & administrative expense:
Selling, general and administrative expenses	3,484	(394)	4,021	1,698
Operating income:
Amortization of intangible assets	(8,934)	(9,519)	(18,022)	(14,977)
Other operating income (loss)	(3,484)	394	(4,021)	(1,698)
U.S. Health & Human Services
Revenue:
Revenue	308,698	290,737	620,979	584,950
U.S. Health & Human Services | Operating Segments
Revenue:
Revenue	308,698	290,737	620,979	584,950
Gross profit:
Gross profit	$ 85,454	$ 86,260	$ 175,044	$ 174,291
Gross profit (as a percent)	27.70%	29.70%	28.20%	29.80%
Selling, general & administrative expense:
Selling, general and administrative expenses	$ 39,239	$ 29,400	$ 70,637	$ 61,539
Selling, general, and administrative expense (as a percent)	12.70%	10.10%	11.40%	10.50%
Operating income:
Operating income	$ 46,215	$ 56,860	$ 104,407	$ 112,752
Operating income (as a percent)	15.00%	19.60%	16.80%	19.30%
U.S. Federal Services
Revenue:
Revenue	$ 393,391	$ 289,736	$ 759,962	$ 506,723
U.S. Federal Services | Operating Segments
Revenue:
Revenue	393,391	289,736	759,962	506,723
Gross profit:
Gross profit	$ 76,958	$ 60,696	$ 147,779	$ 108,681
Gross profit (as a percent)	19.60%	20.90%	19.40%	21.40%
Selling, general & administrative expense:
Selling, general and administrative expenses	$ 46,726	$ 31,104	$ 85,965	$ 57,736
Selling, general, and administrative expense (as a percent)	11.90%	10.70%	11.30%	11.40%
Operating income:
Operating income	$ 30,232	$ 29,592	$ 61,814	$ 50,945
Operating income (as a percent)	7.70%	10.20%	8.10%	10.10%
Outside the U.S.
Revenue:
Revenue	$ 116,046	$ 156,047	$ 255,423	$ 309,466
Outside the U.S. | Operating Segments
Revenue:
Revenue	116,046	156,047	255,423	309,466
Gross profit:
Gross profit	$ (9,314)	$ 22,466	$ 5,725	$ 45,715
Gross profit (as a percent)	(8.00%)	14.40%	2.20%	14.80%
Selling, general & administrative expense:
Selling, general and administrative expenses	$ 17,404	$ 17,992	$ 33,457	$ 36,800
Selling, general, and administrative expense (as a percent)	15.00%	11.50%	13.10%	11.90%
Operating income:
Operating income	$ (26,718)	$ 4,474	$ (27,732)	$ 8,915
Operating income (as a percent)	(23.00%)	2.90%	(10.90%)	2.90%

Segment Information - Identifia

Segment Information - Identifiable assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
Financial information for each of the Company's business segments
Assets	$ 1,960,406	$ 1,745,732
Other
Financial information for each of the Company's business segments
Assets	230,000	214,769
U.S. Health & Human Services | Operating Segments
Financial information for each of the Company's business segments
Assets	580,487	500,641
U.S. Federal Services | Operating Segments
Financial information for each of the Company's business segments
Assets	939,824	795,553
Outside the U.S. | Operating Segments
Financial information for each of the Company's business segments
Assets	$ 210,095	$ 234,769

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	6 Months Ended
	Mar. 31, 2020USD ($)
Leases [Abstract]
Weighted average incremental borrowing rate	3.70%
Weighted average remaining lease term	3 years
Operating lease payments	$ 55.9
Operating lease liabilities arising from new or remeasured right-of-use assets	$ 24.7

Leases - Lease Costs (Details)

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020
Leases [Abstract]
Operating lease cost	$ 23,437	$ 48,687
Short-term lease cost	1,454	3,564
Variable lease cost	1,954	5,288
Total operating lease costs	$ 26,845	$ 57,539

Leases - Remaining Lease Paymen

Leases - Remaining Lease Payments (Details) $ in Thousands	Mar. 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Remainder of 2020	$ 45,968
2021	66,667
2022	42,105
2023	26,588
2024	11,233
Thereafter	6,989
Total minimum lease payments	199,550
Less imputed interest	(11,555)
Total lease liabilities	187,995
Office space
Lessee, Lease, Description [Line Items]
Remainder of 2020	42,136
2021	60,372
2022	39,752
2023	26,490
2024	11,193
Thereafter	6,989
Total minimum lease payments	186,932
Less imputed interest	(11,183)
Total lease liabilities	175,749
Equipment
Lessee, Lease, Description [Line Items]
Remainder of 2020	3,832
2021	6,295
2022	2,353
2023	98
2024	40
Thereafter	0
Total minimum lease payments	12,618
Less imputed interest	(372)
Total lease liabilities	$ 12,246

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 818,135	$ 736,520	$ 1,636,364	$ 1,401,139
United States of America
Disaggregation of Revenue [Line Items]
Revenue	702,089	580,473	1,380,941	1,091,673
United Kingdom
Disaggregation of Revenue [Line Items]
Revenue	63,722	78,334	136,724	151,752
Australia
Disaggregation of Revenue [Line Items]
Revenue	24,540	50,997	61,975	104,370
Rest of world
Disaggregation of Revenue [Line Items]
Revenue	27,784	26,716	56,724	53,344
Total U.S. state government agencies
Disaggregation of Revenue [Line Items]
Revenue	317,417	287,728	624,526	578,342
New York State government agencies
Disaggregation of Revenue [Line Items]
Revenue	100,222	89,858	197,445	181,570
Other U.S. state government agencies
Disaggregation of Revenue [Line Items]
Revenue	217,195	197,870	427,081	396,772
United States Federal Government agencies
Disaggregation of Revenue [Line Items]
Revenue	374,909	270,623	726,742	468,901
International government agencies
Disaggregation of Revenue [Line Items]
Revenue	107,460	146,292	238,276	289,073
Other, including local municipalities and commercial customers
Disaggregation of Revenue [Line Items]
Revenue	18,349	31,877	46,820	64,823
Performance-based
Disaggregation of Revenue [Line Items]
Revenue	275,669	261,592	568,427	574,479
Cost-plus
Disaggregation of Revenue [Line Items]
Revenue	398,973	298,133	761,784	473,431
Fixed price
Disaggregation of Revenue [Line Items]
Revenue	100,504	139,871	219,720	287,022
Time and materials
Disaggregation of Revenue [Line Items]
Revenue	42,989	36,924	86,433	66,207
U.S. Health & Human Services
Disaggregation of Revenue [Line Items]
Revenue	308,698	290,737	620,979	584,950
U.S. Federal Services
Disaggregation of Revenue [Line Items]
Revenue	393,391	289,736	759,962	506,723
Outside the U.S.
Disaggregation of Revenue [Line Items]
Revenue	116,046	156,047	255,423	309,466
Program administration | U.S. Health & Human Services
Disaggregation of Revenue [Line Items]
Revenue	236,436	219,732	473,343	438,705
Program administration | U.S. Federal Services
Disaggregation of Revenue [Line Items]
Revenue	304,367	209,996	586,055	350,117
Program administration | Outside the U.S.
Disaggregation of Revenue [Line Items]
Revenue	16,945	15,922	34,039	31,242
Technology solutions | U.S. Federal Services
Disaggregation of Revenue [Line Items]
Revenue	44,508	37,993	88,114	76,876
Assessments and appeals | U.S. Health & Human Services
Disaggregation of Revenue [Line Items]
Revenue	29,916	33,331	63,747	70,552
Assessments and appeals | U.S. Federal Services
Disaggregation of Revenue [Line Items]
Revenue	44,516	41,747	85,793	79,730
Assessments and appeals | Outside the U.S.
Disaggregation of Revenue [Line Items]
Revenue	62,286	67,771	124,929	130,081
Workforce and children services | U.S. Health & Human Services
Disaggregation of Revenue [Line Items]
Revenue	28,734	23,898	58,120	47,801
Workforce and children services | Outside the U.S.
Disaggregation of Revenue [Line Items]
Revenue	34,683	69,759	91,922	143,037
Other | U.S. Health & Human Services
Disaggregation of Revenue [Line Items]
Revenue	13,612	13,776	25,769	27,892
Other | Outside the U.S.
Disaggregation of Revenue [Line Items]
Revenue	$ 2,132	$ 2,595	$ 4,533	$ 5,106

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Deferred revenue, revenue recognized	$ 22,100	$ 10,200	$ 40,100	$ 32,000
Cumulative catch-up adjustment to revenue from change in estimates	(6,300)	(6,500)	(7,700)	(8,000)
Deferred contract cost capitalization	2,666,000	5,113,000	3,995,000	8,212,000
Deferred contract cost amortization	$ 1,321,000	$ 1,478,000	$ 3,497,000	$ 2,820,000

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions	Mar. 31, 2020USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, amount	$ 270
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	55.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Earnings Per Share (Details)

Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Basic weighted average shares outstanding	63,934	64,369	64,264	64,600
Dilutive effect of unvested RSUs	191	274	182	217
Denominator for diluted earnings per share	64,125	64,643	64,446	64,817
Antidilutive securities excluded from computation of earnings per share	280		250

Acquisitions (Details)

Acquisitions (Details) $ in Thousands, $ in Millions, $ in Millions	Feb. 28, 2020USD ($)	Feb. 28, 2020AUD ($)	Aug. 16, 2019USD ($)	Aug. 16, 2019CAD ($)	Nov. 16, 2018USD ($)	Mar. 31, 2020USD ($)	Sep. 30, 2019USD ($)
Business Acquisition [Line Items]
Goodwill						$ 585,772	$ 584,469
General Dynamics Information Technology's Citizen Engagement Centers
Business Acquisition [Line Items]
Cash payment to acquire business					$ 430,700
Goodwill					184,600
Intangible assets acquired					$ 122,300
GT Hiring Solutions Inc
Business Acquisition [Line Items]
Cash payment to acquire business			$ 6,200	$ 8.2
Goodwill			1,500
Intangible assets acquired			$ 2,700
Percentage of voting equity interests acquired at the acquisition date in the business combination			100.00%
Useful life			7 years	7 years
InjuryNet
Business Acquisition [Line Items]
Cash payment to acquire business	$ 3,700	$ 5.6
Percentage of voting equity interests acquired at the acquisition date in the business combination	100.00%	100.00%

Supplemental Disclosures - Narr

Supplemental Disclosures - Narrative (Details) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Payments for Repurchase of Equity [Abstract]
Repurchases of common stock	$ 165,061,000	$ 4,084,000	$ 166,959,000	$ 45,414,000
Investments in mutual funds	$ 18,400,000		18,400,000
Interest paid			500,000	1,800,000
Income taxes paid			$ 52,900,000	$ 37,200,000
Restricted Stock Units (RSUs)
Payments for Repurchase of Equity [Abstract]
Granted (in shares)			316
Vesting period			5 years
Restricted Stock Units (RSUs) | Member of Board of Directors
Payments for Repurchase of Equity [Abstract]
Vesting period			1 year
Common Stock
Payments for Repurchase of Equity [Abstract]
Common shares repurchased (in shares)	2,741	62	2,767	716
Repurchases of common stock			$ 167,000,000	$ 45,400,000
Stock Repurchase Program, March 2020 | Common Stock
Payments for Repurchase of Equity [Abstract]
Stock repurchase programs, authorized amount	$ 200,000,000		200,000,000
Amount remaining available for future stock repurchases	$ 150,000,000		$ 150,000,000

Supplemental Disclosures - Sche

Supplemental Disclosures - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 126,257	$ 105,565	$ 46,799	$ 349,245
Restricted cash (recorded within "other current assets")	12,485	10,927	7,679	7,314
Cash, cash equivalents and restricted cash	$ 138,742	$ 116,492	$ 54,478	$ 356,559

Litigation (Details)

Litigation (Details) - USD ($) $ in Millions	Mar. 31, 2020	Feb. 29, 2020
Commitments and Contingencies Disclosure [Abstract]
Loss contingency, maximum potential loss	$ 31
Loss Contingency, Disallowed Amount	$ 19	$ 12

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	May 29, 2020	May 01, 2020	Apr. 03, 2020	Mar. 31, 2020	Mar. 31, 2019
Subsequent Event [Line Items]
Payments of ordinary dividends				$ 35,813	$ 31,983
Scenario, Forecast
Subsequent Event [Line Items]
Payments of ordinary dividends	$ 17,000
Subsequent Event
Subsequent Event [Line Items]
Cash dividend declared (in dollars per share)			$ 0.28
Subsequent Event | Q2 Administrators LLC [Member]
Subsequent Event [Line Items]
Proceeds from sale of business		$ 3,250

Uncategorized Items - mms-20200

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 33,482,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	32,929,000
Noncontrolling Interest [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 553,000