Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 16, 2020 | Mar. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,527,771,000 | ||
Entity Common Stock, Shares Outstanding | 61,452,520 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for its 2021 Annual Meeting of Shareholders to be held on March 16, 2021, which definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the end of the registrant's fiscal year, are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001032220 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 3,461,537 | $ 2,886,815 | $ 2,392,236 |
Cost of revenue | 2,750,535 | 2,215,631 | 1,797,851 |
Gross profit | 711,002 | 671,184 | 594,385 |
Selling, general and administrative expenses | 387,090 | 321,023 | 285,241 |
Amortization of intangible assets | 35,634 | 33,054 | 10,308 |
Restructuring costs | 0 | 0 | 3,353 |
Operating income | 288,278 | 317,107 | 295,483 |
Interest expense | 2,059 | 2,957 | 1,000 |
Other income, net | 843 | 3,170 | 4,726 |
Income before income taxes | 287,062 | 317,320 | 299,209 |
Provision for income taxes | 72,553 | 76,825 | 78,393 |
Net income | 214,509 | 240,495 | 220,816 |
(Loss)/income attributable to noncontrolling interests | 0 | (329) | 65 |
Net income attributable to Maximus | $ 214,509 | $ 240,824 | $ 220,751 |
Basic earnings per share (in dollars per share) | $ 3.40 | $ 3.73 | $ 3.37 |
Diluted earnings per share (in dollars per share) | 3.39 | 3.72 | 3.35 |
Dividends per share (in dollars per share) | $ 1.12 | $ 1 | $ 0.18 |
Weighted average shares outstanding: | |||
Basic (in shares) | 63,062 | 64,498 | 65,501 |
Diluted (in shares) | 63,322 | 64,820 | 65,932 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 214,509 | $ 240,495 | $ 220,816 |
Foreign currency translation adjustments | 2,742 | (8,427) | (9,334) |
Comprehensive income | 217,251 | 232,068 | 211,482 |
Comprehensive (loss)/income attributable to noncontrolling interests | 0 | (329) | 65 |
Comprehensive income attributable to Maximus | $ 217,251 | $ 232,397 | $ 211,417 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 71,737 | $ 105,565 |
Accounts receivable — billed and billable, net | 622,871 | 476,690 |
Accounts receivable — unbilled | 163,332 | 123,884 |
Income taxes receivable | 2,075 | 20,805 |
Prepaid expenses and other current assets | 72,543 | 62,481 |
Total current assets | 932,558 | 789,425 |
Property and equipment, net | 66,721 | 99,589 |
Capitalized software, net | 38,033 | 32,369 |
Operating lease right-of-use assets | 177,159 | |
Goodwill | 593,129 | 584,469 |
Intangible assets, net | 145,893 | 179,250 |
Deferred contract costs, net | 20,891 | 18,921 |
Deferred compensation plan assets | 36,819 | 32,908 |
Deferred income taxes | 1,915 | 186 |
Other assets | 11,584 | 8,615 |
Total assets | 2,024,702 | 1,745,732 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 253,338 | 177,786 |
Accrued compensation and benefits | 137,101 | 106,789 |
Deferred revenue | 51,655 | 43,344 |
Income taxes payable | 5,377 | 13,952 |
Current portion of long-term debt and other borrowings | 10,878 | 9,658 |
Operating lease liabilities | 80,748 | |
Other current liabilities | 22,071 | 12,709 |
Total current liabilities | 561,168 | 364,238 |
Deferred revenue, less current portion | 27,311 | 32,341 |
Deferred income taxes | 24,737 | 46,560 |
Long-term debt, less current portion | 18,017 | 231 |
Deferred compensation plan liabilities, less current portion | 38,654 | 34,079 |
Operating lease liabilities, less current portion | 104,011 | |
Other liabilities | 8,985 | 20,082 |
Total liabilities | 782,883 | 497,531 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Common stock, no par value; 100,000 shares authorized; 61,504 and 63,979 shares issued and outstanding at September 30, 2020 and 2019, at stated amount, respectively | 513,959 | 498,433 |
Accumulated other comprehensive loss | (42,638) | (45,380) |
Retained earnings | 770,498 | 794,739 |
Total Maximus shareholders' equity | 1,241,819 | 1,247,792 |
Noncontrolling interests | 0 | 409 |
Total equity | 1,241,819 | 1,248,201 |
Total liabilities and equity | $ 2,024,702 | $ 1,745,732 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 61,504,000 | 63,979,000 |
Common stock, shares outstanding (in shares) | 61,504,000 | 63,979,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operations: | |||
Net income | $ 214,509 | $ 240,495 | $ 220,816 |
Adjustments to reconcile net income to cash flows from operations: | |||
Depreciation and amortization of property and equipment and capitalized software | 64,527 | 52,404 | 51,884 |
Amortization of intangible assets | 35,634 | 33,054 | 10,308 |
Deferred income taxes | (19,145) | 12,661 | 6,721 |
Stock compensation expense | 23,708 | 20,774 | 20,238 |
Gain on sale of a business | (1,718) | 0 | 0 |
Changes in assets and liabilities, net of effects of business combinations | |||
Accounts receivable — billed and billable | (141,842) | (60,313) | 34,033 |
Accounts receivable — unbilled | (38,905) | 14,818 | 4,920 |
Prepaid expenses and other current assets | (9,839) | (15,583) | 4,954 |
Deferred contract costs | (1,911) | (4,670) | 1,838 |
Accounts payable and accrued liabilities | 79,930 | 47,580 | (7,725) |
Accrued compensation and benefits | 29,484 | 2,288 | (8,795) |
Deferred revenue | 2,391 | 16,488 | (27,039) |
Income taxes | 3,490 | (4,720) | 7,262 |
Operating lease right-of-use assets and liabilities | (556) | 0 | 0 |
Other assets and liabilities | 4,835 | 1,451 | (2,641) |
Cash flows from operations | 244,592 | 356,727 | 316,774 |
Cash flows from investing activities: | |||
Purchases of property and equipment and capitalized software costs | (40,707) | (66,846) | (26,520) |
Acquisition of businesses, net of cash acquired | (7,066) | (436,839) | 0 |
Acquisition of noncontrolling interests | 0 | (647) | (157) |
Proceeds from sale of business | 3,250 | 0 | 0 |
Maturities of short-term investments | 0 | 19,996 | (19,996) |
Other | 385 | 453 | 1,436 |
Cash used in investing activities | (44,138) | (483,883) | (45,237) |
Cash flows from financing activities: | |||
Cash dividends paid to Maximus shareholders | (70,155) | (63,887) | (11,692) |
Purchases of Maximus common stock | (166,959) | (47,446) | (66,919) |
Tax withholding related to RSU vesting | (10,614) | (8,915) | (8,529) |
Borrowings of debt | 638,048 | 414,664 | 136,632 |
Repayment of debt | (619,445) | (405,142) | (136,769) |
Other | (965) | (133) | (4,603) |
Cash used in financing activities | (230,090) | (110,859) | (91,880) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,705 | (2,052) | (2,825) |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (27,931) | (240,067) | 176,832 |
Cash, cash equivalents and restricted cash, beginning of period | 116,492 | 356,559 | 179,727 |
Cash, cash equivalents and restricted cash, end of period | $ 88,561 | $ 116,492 | $ 356,559 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative impact from adopting Topic 606 on October 1, 2018 | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Retained EarningsCumulative impact from adopting Topic 606 on October 1, 2018 | Noncontrolling Interest | Noncontrolling InterestCumulative impact from adopting Topic 606 on October 1, 2018 |
Beginning Balance (in shares) at Sep. 30, 2017 | 65,137,000 | |||||||
Beginning Balance at Sep. 30, 2017 | $ 945,768 | $ 475,592 | $ (27,619) | $ 492,112 | $ 5,683 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 220,816 | 220,751 | 65 | |||||
Foreign currency translation | (9,334) | (9,334) | ||||||
Cash dividends | (14,607) | (11,692) | (2,915) | |||||
Dividends on RSUs | $ 0 | $ 318 | (318) | |||||
Purchase of MAXIMUS common stock (in shares) | (1,100,000) | (1,088,000) | ||||||
Purchases of Maximus common stock | $ (67,572) | (67,572) | ||||||
Stock compensation expense | 20,238 | $ 20,238 | ||||||
Tax withholding relating to RSU vesting | (8,733) | $ (8,733) | ||||||
RSUs vested (in shares) | 322,000 | |||||||
RSUs vested | 0 | |||||||
Acquisition of part of noncontrolling interests | (157) | $ 124 | (281) | |||||
Ending Balance (in shares) at Sep. 30, 2018 | 64,371,000 | |||||||
Ending Balance at Sep. 30, 2018 | $ 1,086,419 | $ 33,482 | $ 487,539 | (36,953) | 633,281 | $ 32,929 | 2,552 | $ 553 |
Increase (Decrease) in Shareholders' Equity | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||
Net income | $ 240,495 | 240,824 | (329) | |||||
Foreign currency translation | (8,427) | (8,427) | ||||||
Cash dividends | (66,472) | (63,887) | (2,585) | |||||
Dividends on RSUs | $ 0 | $ 1,611 | (1,611) | |||||
Purchase of MAXIMUS common stock (in shares) | (700,000) | (732,000) | ||||||
Purchases of Maximus common stock | $ (46,797) | (46,797) | ||||||
Stock compensation expense | 20,774 | $ 20,774 | ||||||
Tax withholding relating to RSU vesting | (10,614) | $ (10,614) | ||||||
RSUs vested (in shares) | 340,000 | |||||||
RSUs vested | 0 | |||||||
Acquisition of part of noncontrolling interests | $ (659) | $ (877) | 218 | |||||
Ending Balance (in shares) at Sep. 30, 2019 | 63,979,000 | 63,979,000 | ||||||
Ending Balance at Sep. 30, 2019 | $ 1,248,201 | $ 498,433 | (45,380) | 794,739 | 409 | |||
Increase (Decrease) in Shareholders' Equity | ||||||||
Net income | 214,509 | 214,509 | ||||||
Foreign currency translation | 2,742 | 2,742 | ||||||
Cash dividends | (70,564) | (70,155) | (409) | |||||
Dividends on RSUs | $ 0 | $ 1,636 | (1,636) | |||||
Purchase of MAXIMUS common stock (in shares) | (2,800,000) | (2,767,000) | ||||||
Purchases of Maximus common stock | $ (166,959) | (166,959) | ||||||
Stock compensation expense | 23,708 | $ 23,708 | ||||||
Tax withholding relating to RSU vesting | (9,818) | $ (9,818) | ||||||
RSUs vested (in shares) | 292,000 | |||||||
RSUs vested | $ 0 | |||||||
Ending Balance (in shares) at Sep. 30, 2020 | 61,504,000 | 61,504,000 | ||||||
Ending Balance at Sep. 30, 2020 | $ 1,241,819 | $ 513,959 | $ (42,638) | $ 770,498 | $ 0 |
Business and summary of signifi
Business and summary of significant accounting policies | 12 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and summary of significant accounting policies | Business and summary of significant accounting policies Description of business Maximus, Inc. (the "Company", "Maximus" or "we") is a leading operator of government health and human services programs worldwide. Principles of consolidation The consolidated financial statements include the accounts of Maximus, Inc. and its wholly-owned subsidiaries (the "financial statements"). All intercompany balances and transactions were eliminated in consolidation. Certain financial results were reclassified to conform with our current period presentation. Where Maximus owns less than 100% of the share capital of its subsidiaries but is still considered to have sufficient ownership to control the businesses, the results of these business operations are consolidated within our financial statements. Estimates The preparation of these financial statements, in conformity with Generally Accepted Accounting Principles in the United States (GAAP), 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 Coronavirus (COVID-19) global 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 in the past. • Our balance sheet includes goodwill valued at $593.1 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, 2020 using a qualitative assessment. As of July 1, 2020, none of our reporting units showed any signs of impairment. • 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. Initial asset lives may be shortened based upon circumstances such as contract terminations or changes in capital strategy. Where this occurs, we may need to accelerate our depreciation or amortization charges. These assets 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 $786.2 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 year ended September 30, 2020, we recorded bad debt expense of $2.8 million. We reserved balances against customers who we believe that we may not be reimbursed for work performed. • As disclosed in "Note 3. Revenue recognition," revenue for some of 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 suffered a significant shock during the second quarter of the current fiscal year and many employment opportunities were 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, participants in programs prior to March 2020 experienced reduced opportunities to reach sustained employment. This resulted in revised estimates to our outcome fees and a reduction in our unbilled revenue balance. During the three months ended March 31, 2020, we recorded adjustments to revenue of approximately $24 million related to changes in estimates from these contracts. This reduced our net income and diluted earnings per share by approximately $18 million and $0.28, respectively. We have continued to update our estimates through the remainder of the year. At September 30, 2020 and 2019, we recorded $24.8 million and $47.0 million of these estimated outcome fees which will be collected when we reach the targets we anticipate. • Many of our contracts in U.S. 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, provided regular guidance, there is some uncertainty within other contracts as to recoverable costs. Changes in financial reporting adopted in fiscal year 2020 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 twelve 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 allow 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 corporate credit facility. (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, current portion — 88,276 88,276 Other current liabilities 12,709 (648) 12,061 Operating lease liabilities, less 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 therefore there was no net effect resulted from this change. Additional information and disclosures relating to this change are included within "Note 4. Leases." Anticipated changes in financial reporting 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, using a prospective approach. Accordingly, this standard will only affect our future financial statements. 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 do not expect the adoption of this standard or its application in future periods to have a material effect on our financial statements. 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 standard on October 1, 2020. The effect of this new standard will depend upon the outcome of future goodwill impairment tests. We are subject to agreements that reference the London Interbank Offering Rate (LIBOR). Between now and December 2022, we anticipate that agreements with LIBOR will be updated to reflect the transition from this rate to alternative reference rates. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard is intended to provide temporary optional expedients and exceptions on contract modifications and hedge accounting to ease the financial reporting burdens related to this expected market transition. This standard is effective for all entities upon issuance through December 31, 2022. We are assessing the impact of the market transition and this standard. Other recent accounting pronouncements are not expected to have a material effect on our financial statements. Revenue Recognition Beginning October 1, 2018, we recognize revenue in accordance with Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . We adopted this standard using the modified retrospective method; accordingly, only periods after October 1, 2018, utilize Topic 606 . Under Topic 606 , we recognize revenue as, or when, we satisfy performance obligations under a contract. We account for a contract when the parties approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance and it is probable that we will collect substantially all of the consideration. A performance obligation is a promise in a contract to transfer a distinct good or service, or a series of distinct goods or services, to a customer. The transaction price of a contract must be allocated to each performance obligation and recognized as the performance obligation is satisfied. Although our services may have many components, these components are not necessarily distinct performance obligations as they may be interdependent on or interrelated to each other. Where our contracts contain more than one performance obligation, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each component. This method will vary from contract to contract. Where available, we utilize standalone selling prices of similar components. If this information is unavailable, we utilize a suitable metric to allocate selling price, such as costs incurred. The majority of our contracts have performance obligations that 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. This continuous transfer of control is supported by the unilateral right of many of our customers to terminate contracts for convenience, without having to provide justification for this decision. Where we are reimbursed on a cost-plus basis, we recognize revenue based upon our costs incurred to date; where we are reimbursed on a fixed price basis, we recognize revenue based upon an appropriate output measure that may be time elapsed or another measure within the contract. When we have variable fees, such as revenue related to the volume of work or award fees, we allocate that revenue to the distinct periods of service to which they relate. In estimating our variable fees, we are required to constrain our estimates to the extent that it is probable that there will not be a significant reversal of cumulative revenue when the uncertainty is resolved. Other performance obligations are satisfied at a point in time, rather than over time. We recognize revenue only when the customer received control over the goods provided. Revenue recognition on these performance obligations does not require a significant level of judgment or estimation. Where we have contract modifications, these are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. Where the modification changes the scope or price and the additional performance obligations are at their standalone selling price, these services are considered a separate contract. Where there is a modification and the additional performance obligations are not at their standalone selling price, we consider whether those performance obligations are distinct from those already delivered. If services are distinct from those already provided, the contract is accounted for prospectively, as though the original contract had been terminated and a new arrangement entered into. Where the modification includes goods or services which are not distinct from those already provided, we record a cumulative adjustment to revenue based upon a remeasurement of progress towards the complete satisfaction of performance obligations not yet fully delivered. Accounts receivable—billed, billable and unbilled and deferred revenue Billed receivables are balances where an invoice has been prepared and issued and is collectible under standard contract terms. Many of our clients require invoices to be prepared on a monthly basis. Where we anticipate that an invoice will be issued within a short period of time and where the funds are considered collectible within standard contract terms, we include this balance as billable accounts receivable. Both billed and billable balances are recorded at their face amount less an allowance for doubtful accounts. We re-evaluate our client receivables on a quarterly basis, especially receivables that are past due, and reassess our allowance for doubtful accounts based on specific client collection issues. We present unbilled receivables and deferred revenue as separate components of our consolidated balance sheets. These balances represent timing differences between when amounts are billed or billable and when revenue has been recognized or has occurred as of period end. The timing of these billings is generally driven by the contractual terms, which may have billing milestones that are different from revenue recognition milestones. Our unbilled receivables balance also includes retainage balances, where customers may hold back payment for work performed for a period of time to allow opportunities to evaluate the quality of our performance. The balance also includes estimated fees where performance outcomes are anticipated but have not yet been achieved. Our unbilled receivable balance is recorded at fair value that is the value which we expect to invoice for the services performed once the objective criteria laid out by the contract have been met. We defer revenue where we receive up-front funds to establish the infrastructure needed for a long-term contract. Business combinations and goodwill The purchase price of an acquired business is allocated to tangible assets, separately identifiable intangible assets acquired and liabilities assumed based upon their respective fair values. Any excess balance is recorded as goodwill. Costs incurred directly related to an acquisition, including legal, accounting and valuation services, are expensed as incurred. Intangible assets are separately identified and recorded at fair value. These assets are amortized on a straight-line basis over useful lives estimated at the time of the business combination. Goodwill is not amortized but is subject to impairment testing on an annual basis, or more frequently if impairment indicators arise. Impairment testing is performed at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment (the component level) if discrete financial information is prepared and reviewed regularly by segment management. However, components are aggregated if they have similar economic characteristics. We have the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If we conclude that such an impairment is not more-likely-than-not in all cases, no impairment is recorded. If such an impairment is more-likely-than-not, or if we choose to bypass this qualitative assessment, an evaluation is performed by comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of the reporting unit. If the fair value of the reporting unit exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds the fair value, the goodwill of the reporting unit may be impaired. Our reporting units are consistent with our operating segments, U.S. Services, U.S. Federal Services and Outside the U.S. We perform our annual impairment test as of July 1 of each year. We performed the annual impairment test using the qualitative assessment as of July 1, 2020, and concluded it was not more likely than not that the fair value of the reporting units was less than the carrying amounts. Long-lived assets (excluding goodwill) Property and equipment is recorded at cost. Depreciation is recorded over the assets' respective useful economic lives using the straight-line method, which are not to exceed 39 years for our buildings and 7 years for office furniture and equipment. Leasehold improvements are amortized over the shorter of their useful life or the remaining term of the lease. Repairs and maintenance costs are expensed as incurred. All of the Company's capitalized software represents development costs for software that is intended for our internal use. Direct costs of time and materials incurred for the development of application software for internal use are capitalized and depreciated using the straight-line method over the estimated useful life of the software, ranging from three Deferred contract costs consist of contractually recoverable direct set-up costs related to long-term service contracts. These costs include direct and incremental costs incurred prior to the commencement of providing service to our customer. These costs are expensed over the period the services are provided using the straight-line method. We review long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. Our review is based on our projection of the undiscounted future operating cash flows of the related asset group. To the extent such projections indicate that future undiscounted cash flows are not sufficient to recover the carrying amount, we recognize a non-cash impairment charge to reduce the carrying amount to equal projected future discounted cash flows. During the years ending September 30, 2020 and 2019, we recorded impairment charges of $1.2 million and $3.7 million on long-lived assets within our U.S. Services Segment relating to underperforming contracts. No impairment charges were recorded in the year ended September 30, 2018. Income taxes Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities and are measured by applying enacted tax rates and laws for the taxable years in which those differences are expected to reverse. In addition, a valuation allowance is recorded if it is believed more likely than not that a deferred tax asset will not be fully realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would "more likely than not" sustain the position following an audit. For tax positions meeting the "more likely than not" threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. Foreign currency For all foreign operations, the functional currency is the local currency. The assets and liabilities of foreign operations are translated into U.S. Dollars at period-end exchange rates, and revenue and expenses are translated at average exchange rates for the year. The resulting cumulative translation adjustment is included in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in "other income, net" on our consolidated statements of operations. Contingencies From time to time, we are involved in legal proceedings, including contract and employment claims. We assess the likelihood of any adverse judgments or outcomes to these contingencies, as well as potential ranges of probable losses and establish reserves accordingly. The amount of reserves required may change in future periods due to new developments in each matter or changes in approach to a matter, such as a change in settlement strategy. We are also subject to audits by our government clients on many of our contracts based upon measures such as costs incurred or transactions processed. These audits may take place several years after a contract has been completed. We maintain reserves where we are able to estimate any potential liability. Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of inputs used to determine fair value. Accordingly, assets and liabilities carried at or permitted to be carried at fair value are classified within the fair value hierarchy in one of the following categories based on the lowest level input that is significant in measuring fair value: Level 1 - Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities. Level 2 - Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models such as interest rates and yield curves that can be corroborated by observable market data. Level 3 - Fair value is determined by using inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgment. 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 approximate fair value due to the short-term nature of these balances. We hold investments in a Rabbi Trust on behalf of our deferred compensation plan. These assets are recorded on our consolidated balance sheets at fair value under the heading of "Deferred compensation plan assets." These assets have quoted prices in active markets (Level 1). See "Note 12. Employee benefit plans and deferred compensation" for further details. |
Business segments
Business segments | 12 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business segments | Business segments We conduct our operations through three business segments: U.S. Services, U.S. Federal Services, and Outside the U.S. • Our U.S. Services Segment provides a variety of business process services such as program administration, appeals and assessments work 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, the Children’s Health Insurance Program (CHIP), Temporary Assistance to Needy Families (TANF), and child support programs. In fiscal year 2020, the segment further executed on its clinical evolution strategy by expanding its clinical offerings in public health with new work in contact tracing, disease investigation, and COVID-19 response efforts. We also successfully expanded into the unemployment insurance market as Maximus supported 14 states in their unemployment insurance programs. We changed the name of our U.S. Health and Human Services to U.S. Services to recognize the evolution our service offerings into new markets and clients. • Our U.S. Federal Services Segment provides program administration, appeals and assessments services and technology solutions, including system and software development and maintenance services, for various U.S. federal civilian programs. The 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. In fiscal year 2020, the segment expanded its clinical offerings in public health with new work supporting the Federal Government's COVID-19 response efforts. This included expanded work with the Centers for Disease Control and Prevention (CDC) for their helpline, an outbound customer support center for the Office of the Assistant Secretary for Health to notify individuals throughout the U.S. of their COVID-19 test result and IRS Wage and Investment Division response efforts to general inquiries regarding the Coronavirus Aid Relief & Economic Security (CARES) Act and Economic Impact Payment Service Plan. • Our Outside the U.S. Segment provides business process services (BPS) solutions for governments and commercial clients in geographies beyond the U.S., including health and disability assessments, program administration for employment services and other job seeker-related services. We support programs and deliver services in the United Kingdom (U.K.), 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, Singapore, South Korea and Sweden. Expenses that are not specifically included in the segments are included in other categories, including amortization of intangible assets, costs incurred in restructuring our U.K. business, the direct costs of acquisitions and the gain on sale of Q2 Administrators, LLC. These costs are excluded from measuring each segment's operating performance. The results of these segments for the three years ended September 30, 2020, are shown below. Year ended September 30, (in thousands) 2020 2019 2018 Revenue: U.S. Services 1,329,274 $ 1,176,488 $ 1,213,911 U.S. Federal Services 1,633,337 1,111,197 478,911 Outside the U.S. 498,926 599,130 699,414 Total $ 3,461,537 $ 2,886,815 $ 2,392,236 Gross profit: U.S. Services $ 360,272 $ 344,109 $ 359,624 U.S. Federal Services 318,925 242,070 126,698 Outside the U.S. 31,805 85,005 108,063 Total $ 711,002 $ 671,184 $ 594,385 Selling, general and administrative expense: U.S. Services $ 132,489 $ 123,275 $ 140,990 U.S. Federal Services 186,023 126,128 69,312 Outside the U.S. 65,938 68,944 72,095 Gain on sale of a business (1) (1,718) — — Other (2) 4,358 2,676 2,844 Total $ 387,090 $ 321,023 $ 285,241 Operating income: U.S. Services $ 227,783 $ 220,834 $ 218,634 U.S. Federal Services 132,902 115,942 57,386 Outside the U.S. (34,133) 16,061 35,968 Amortization of intangible assets (35,634) (33,054) (10,308) Restructuring costs (3) — — (3,353) Acquisition-related expenses (4) (4,621) (2,691) (947) Gain on sale of a business (1) 1,718 — — Other 263 15 (1,897) Total $ 288,278 $ 317,107 $ 295,483 Depreciation and amortization: U.S. Services $ 20,951 $ 18,466 $ 20,963 U.S. Federal Services 25,153 16,802 8,478 Outside the U.S. 18,423 17,136 22,443 Total $ 64,527 $ 52,404 $ 51,884 (1) During fiscal year 2020, we sold Q2 Administrators LLC, a subsidiary within our U.S. Federal Services Segment, resulting in a gain. Refer to "Note 6. Business combinations and disposals" for more details . (2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment. (3) Restructuring costs incurred in the year ending September 30, 2018, were related to our United Kingdom businesses. (4) Acquisition-related expenses are costs of completed business combinations as well as the costs of any unsuccessful transactions. The charges above include costs for the acquisition of the citizen engagement centers business that were incurred in fiscal years 2018 and 2019. We operate in the United States, Australia, Canada, Italy, Saudi Arabia, Singapore, South Korea, Sweden, and the United Kingdom. Our revenue was distributed as follows: Year ended September 30, (in thousands) 2020 2019 2018 United States $ 2,962,610 $ 2,287,685 $ 1,692,823 United Kingdom 246,335 293,695 347,026 Australia 147,156 198,795 247,850 Rest of World 105,436 106,640 104,537 Total $ 3,461,537 $ 2,886,815 $ 2,392,236 Identifiable assets for the segments are shown below: Year ended September 30, (in thousands) 2020 2019 U.S. Services $ 702,728 $ 500,641 U.S. Federal Services 937,477 795,553 Outside the U.S. 224,532 234,769 Corporate/Other 159,965 214,769 Total $ 2,024,702 $ 1,745,732 Our long-lived assets, consisting of property and equipment, capitalized software costs, operating lease right-of-use assets and deferred compensation plan assets were distributed as follows: Year ended September 30, (in thousands) 2020 2019 United States $ 255,346 $ 134,511 Australia 30,183 11,950 Canada 24,522 14,681 United Kingdom 7,610 3,129 Rest of World 1,071 595 Total $ 318,732 $ 164,866 |
Revenue recognition
Revenue recognition | 12 Months Ended |
Sep. 30, 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 that 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 and geography reporting, we disaggregate our revenues by product, contract type and customer type. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results that are further discussed in "Note 2. Business segments." By operating segment and service Year ended September 30, (in thousands) 2020 2019 Program administration 1,008,591 883,772 Assessments and appeals 141,446 136,109 Workforce and children services 127,595 100,454 Other 51,642 56,153 Total U.S. Services 1,329,274 1,176,488 Program administration 1,288,741 779,573 Technology solutions 169,259 160,342 Assessments and appeals 175,337 171,282 Total U.S. Federal Services 1,633,337 1,111,197 Workforce and children services 206,657 272,801 Assessments and appeals 218,704 252,447 Program administration 66,002 63,734 Other 7,563 10,148 Total Outside the U.S. 498,926 599,130 Total revenue 3,461,537 2,886,815 By contract type Year ended September 30, (in thousands) 2020 2019 Performance-based $ 1,109,153 $ 1,193,075 Cost-plus $ 1,578,912 $ 1,088,541 Fixed price $ 471,505 $ 441,146 Time and materials $ 301,967 $ 164,053 Total revenue $ 3,461,537 $ 2,886,815 By customer type Year ended September 30, (in thousands) 2020 2019 New York State government agencies $ 355,282 $ 362,724 Other U.S. state government agencies 988,945 804,213 Total U.S. state government agencies 1,344,227 1,166,937 United States Federal Government agencies 1,559,165 1,040,980 International government agencies 467,185 558,599 Other, including local municipalities and commercial customers 90,960 120,299 Total revenue $ 3,461,537 $ 2,886,815 With the exceptions of the U.S. Federal Government and New York State, no customer provided more than 10% of our annual revenue in fiscal years 2020 and 2019. Many of our U.S. state government agency programs receive significant federal funding. We believe that the credit risk associated with our receivables is limited due to the creditworthiness of our customers. 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 that may vary over time. We typically invoice our customers at an agreed provisional billing rate that will 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 rate is higher than our actual rate, we record a liability. • Certain contracts include retainage balances, where revenue is earned, but cash payments are held back by the customer for a period of time, typically to allow the customer to confirm that the objective criteria laid out by the contract have been met. This balance is classified as accounts receivable - unbilled until restrictions on billing are 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 that 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 that 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. During the year ended September 30, 2020, we recognized revenue of $54.6 million included in our deferred revenue balances at September 30, 2019. During the year ended September 30, 2019, we recognized revenue of $39.9 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. Business and summary of significant accounting policies," the calculation of these estimates have 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 were 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 that were 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. During the fiscal year ended September 30, 2020, we recognized revenue from these performance-based fees of $45.0 million. At September 30, 2020, we have recorded $24.8 million of these estimated outcome fees which will be collected only when we reach the targets we anticipate. This balance is included on our consolidated balance sheets within the related contract accounts. 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. Changes to our estimates are recognized on a cumulative catch-up basis. In the years ended September 30, 2020 and 2019, we reported reductions in revenue of $9.2 million and $10.9 million from changes in estimates, respectively. Remaining performance obligations At September 30, 2020, we had approximately $400 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 50% 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. Accounts receivable reserves Changes in the reserves against accounts receivable were as follows: Year ended September 30, (in thousands) 2020 2019 2018 Balance at beginning of year $ 5,382 $ 4,285 $ 6,843 Additions to reserve 12,976 4,018 243 Deductions (12,307) (2,921) (2,801) Balance at end of year $ 6,051 $ 5,382 $ 4,285 In evaluating the net realizable value of accounts receivable, we consider such factors as current economic trends, customer credit-worthiness, and changes in the customer payment terms and collection trends. Changes in the assumptions used in analyzing a specific account receivable may result in a reserve being recognized in the period in which the change occurs. At September 30, 2020 and 2019, $12.3 million and $11.5 million, respectively, of our unbilled receivables related to amounts pursuant to contractual retainage provisions. These provisions are in place to allow the customer |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Beginning October 1, 2019, we identify contracts that 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 September 30, 2020, is 3.8%. 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 for the year ended September 30, 2020, are summarized below. (in thousands) Year ended September 30, 2020 Operating lease cost $ 102,811 Short-term lease cost 9,140 Variable lease cost 13,310 Total operating lease costs $ 125,261 Future minimum lease payments for noncancelable operating leases as of September 30, 2020, are shown below. (in thousands) Office space Equipment Total For the years ended September 30, 2021 $ 76,588 $ 9,522 $ 86,110 2022 51,970 3,390 55,360 2023 29,876 525 30,401 2024 13,428 47 13,475 2025 8,570 6 8,576 Thereafter 1,587 — 1,587 Total minimum lease payments $ 182,019 $ 13,490 $ 195,509 Less: imputed interest (10,409) (341) (10,750) Total lease liabilities $ 171,610 $ 13,149 $ 184,759 Our weighted average remaining lease term at September 30, 2020, is 2.8 years. For the year ended September 30, 2020, we made cash payments of $109.4 million for amounts included in our lease liabilities. New or amended leases resulted in additional right-of-use assets of $72.7 million for the same period. |
Earnings per share
Earnings per share | 12 Months Ended |
Sep. 30, 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: Year ended September 30, (in thousands) 2020 2019 2018 Weighted average shares outstanding 63,062 64,498 65,501 Dilutive effect of unvested restricted stock awards 260 322 431 Denominator for diluted earnings per share 63,322 64,820 65,932 For the years ended September 30, 2020 , 2019 and 2018, we excluded approximately 215,000 , 10,000 and 5,000 unvested restricted stock units, respectively, from the calculation of diluted earnings per share as the effect of including them, was anti-dilutive. |
Business combinations and dispo
Business combinations and disposals | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business combinations and disposals | Business combinations and disposals Citizen engagement centers On November 16, 2018, we acquired General Dynamics Information Technology's citizen engagement centers business, pursuant to an asset purchase agreement dated October 5, 2018. The assets acquired included existing contracts, contractual relationships and bids for contracts submitted prior to the acquisition date, as well as interests in leased properties, fixed assets, working capital and intangible assets. This acquisition strengthened our position in the administration of federal government programs. This business was integrated into our U.S. Federal Services Segment. The contract provided for a purchase price of $400 million adjusted for the net working capital in excess of or less than an agreed-upon target representing an estimate of normalized net working capital. The working capital balance at the acquisition date was higher than this estimate, and, accordingly, we incurred a purchase price of $430.7 million. As part of the acquisition, we incurred acquisition-related expenses, including legal, accounting and other consultant services. We recorded selling, general and administrative expenses of $2.7 million and $0.5 million in the years ended September 30, 2019 and 2018, respectively. We considered this transaction to be an acquisition of a business. The valuation of the assets acquired and liabilities assumed was as follows. (in thousands) Final purchase price allocation Cash consideration $ 430,723 Billed and unbilled receivables 142,077 Property and equipment 13,961 Other assets 4,530 Intangible assets 122,300 Total identifiable assets acquired 282,868 Accounts payable and other liabilities 36,785 Net identifiable assets acquired 246,083 Goodwill 184,640 Net assets acquired $ 430,723 Goodwill represents the value of the assembled workforce and the enhanced knowledge, capabilities and qualifications held by the business. This goodwill balance is expected to be deductible for tax purposes. The fair value of the intangible assets acquired was estimated to be $122.3 million, representing customer relationships. We estimated this balance using the excess earnings method and used a number of estimates, including expected future earnings from the acquired business and an appropriate expected rate of return. We assumed useful economic life of 10 years for most contracts, representing our expectation of the period over which we will receive the benefit. Typically, our customer relationships are based upon the provision of services to our customers on a daily or monthly basis and, although contracts are frequently rebid, we believe that an incumbent provider typically enjoys significant competitive advantages. In reviewing the contract portfolio, we allocated a shorter life to a contract that pertains to the U.S. decennial census. This contract requires managing a significant ramp-up and ramp-down of work over the census cycle. As much of the benefit from this contract is anticipated to occur through fiscal years 2019 and 2020, we utilized a shorter asset life for this customer relationship. The average weighted intangible asset life is 7.6 years and amortization is being recorded on a straight-line basis. (in thousands) Useful life Fair value Customer relationships - all contracts except U.S. Census 10 years $ 85,300 Customer relationship - U.S. Census 2 years 37,000 Total intangible assets $ 122,300 From the acquisition date through September 30, 2019, the acquired business contributed $615.1 million and $117.4 million of revenue and gross profit, respectively. Given the integration of the acquired business into our cost structure, it is impracticable to calculate the effect of the acquisition on operating income. The following table presents certain results for the years ended September 30, 2019 and 2018, as though the acquisition had occurred on October 1, 2017. The pro forma results below eliminate intercompany transactions, include amortization charges for acquired intangible assets, eliminate pre-acquisition transaction costs and include estimates of interest expense, as well as corresponding changes in our tax charge. This pro forma information is presented for information only. For example, this pro forma information does not include any of our synergies but does include, in both years shown, a charge of $18.5 million, related to the amortization of the U.S. Census customer relationship intangible asset. Although the U.S. Census contract commenced prior to October 1, 2017, more of the benefit was recorded in fiscal year 2020. For these and other reasons, this pro forma information is not necessarily indicative of the results if the acquisition had taken place on that date. Pro forma results for the year ended September 30, (dollars in thousands, except per share data) 2019 2018 Revenue $ 2,985,244 $ 3,016,823 Net income 243,968 218,647 Basic earnings per share attributable to Maximus 3.79 3.34 Diluted earnings per share attributed to Maximus 3.77 3.32 GT Hiring Solutions 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 was integrated into our Outside the U.S. Segment. We recorded estimated goodwill and intangible assets balances of $2.1 million and $2.2 million, respectively, related to this acquisition. The goodwill represents the assembled workforce and enhanced knowledge, experience and reputation we obtained from the acquisition and will not be deductible for tax purposes. The intangible assets represent customer relationships, which will be amortized over seven years. InjuryNet Australia Pty Limited On February 28, 2020, we acquired 100% of the share capital of InjuryNet Australia Pty Limited (InjuryNet) for an estimated purchase price of $4.4 million (6.7 million Australian Dollars), which includes acquisition-related contigent consideration estimated at $2.1 million ($3.1 million Australian Dollars) based upon future earnings. The purchase price is subject to adjustment for a working capital true-up and acquisition-related contingent consideration. InjuryNet provides workplace medical services in Australia. The business was 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 of $2.6 million and $0.9 million, respectively, related to the acquisition. Index Root Korea Co. Ltd. On August 21, 2020, we acquired 100% of the share capital of Index Root Korea Co. Ltd (Index Root) for an estimated purchase price of $5.4 million (6.3 billion South Korean Won), which includes acquisition-related contingent consideration estimated at $0.9 million (1.1 billion South Korean Won) based upon future earnings. We acquired Index Root to expand our geographic presence to South Korea. The business was integrated into our Outside the U.S. Segment. We recorded estimated goodwill and intangible assets of $4.6 million and $1.4 million, respectively, related to the acquisition. Noncontrolling interests Both our United Kingdom Remploy subsidiary and our business in Saudi Arabia had been partially owned by other parties. During fiscal year 2019, we acquired the share capital held by our partners for $0.4 million and $0.2 million, respectively. Q2 Administrators, LLC On May 1, 2020, we sold Q2 Administrators LLC, a wholly-owned subsidiary, for $3.1 million, resulting in a gain of $1.7 million. We made the sale to avoid a possible or perceived conflict arising from a new contract. Goodwill and intangible assets Changes in goodwill for the years ended September 30, 2020 and 2019, are shown below. (in thousands) U.S. Services U.S. Federal Outside the U.S. Total Balance as of September 30, 2018 $ 139,588 $ 228,148 $ 32,146 $ 399,882 Acquisition of citizen engagement centers business 24,884 154,470 5,286 184,640 Acquisition of GT Hiring — — 1,347 1,347 Other — — 372 372 Foreign currency translation — — (1,772) (1,772) Balance as of September 30, 2019 164,472 382,618 37,379 584,469 Acquisitions — — 7,652 7,652 Disposal of Q2 Administrators, LLC — (899) — (899) Foreign currency translation — — 1,907 1,907 Balance as of September 30, 2020 $ 164,472 $ 381,719 $ 46,938 $ 593,129 There were no impairment charges to our goodwill. Although the citizen engagement center business was integrated into our U.S. Federal Services Segment, the acquisition provided benefits across all three segments. The most significant contracts acquired are cost-plus arrangements, which allow us to recover a greater share of our corporate overhead. Accordingly, we allocated goodwill based upon an estimate of the relative fair value of the benefit to each segment. The following table sets forth the components of intangible assets: As of September 30, 2020 As of September 30, 2019 (in thousands) Cost Accumulated Intangible Cost Accumulated Intangible Customer contracts and relationships $ 235,287 $ 90,302 $ 144,985 $ 250,455 $ 72,430 $ 178,025 Technology-based intangible assets 5,631 4,723 908 5,613 4,405 1,208 Trademarks and trade names 4,479 4,479 — 4,483 4,466 17 Total $ 245,397 $ 99,504 $ 145,893 $ 260,551 $ 81,301 $ 179,250 As of September 30, 2020, our intangible assets have a weighted average remaining life of 9.0 years, comprising 9.0 years for customer contracts and relationships and 3.1 years for technology-based intangible assets. The estimated future amortization expense for the next five years for the intangible assets held by the Company as of September 30, 2020, is as follows: (in thousands) Estimated Future Amortization Expense 2021 $ 18,969 2022 16,596 2023 16,498 2024 16,374 2025 16,152 |
Income taxes
Income taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes The components of income before income taxes and the corresponding provision for income taxes are as follows: Year ended September 30, (in thousands) 2020 2019 2018 Income before income taxes: United States $ 304,240 $ 280,092 $ 248,360 Foreign (17,178) 37,228 50,849 Income before income taxes $ 287,062 $ 317,320 $ 299,209 Year ended September 30, (in thousands) 2020 2019 2018 Current provision/(benefit): Federal $ 65,735 $ 37,123 $ 42,318 State and local 28,117 14,480 13,459 Foreign (2,154) 12,561 15,895 Total current provision 91,698 64,164 71,672 Deferred tax expense/(benefit): Federal (12,984) 12,627 4,106 State and local (4,246) 3,013 2,902 Foreign (1,915) (2,979) (287) Total deferred tax expense/(benefit) (19,145) 12,661 6,721 Provision for income taxes $ 72,553 $ 76,825 $ 78,393 The Tax Cuts and Jobs Act (the Act) was enacted on December 22, 2017. Among other things, the Act reduced the U.S. Federal tax rate from 35% to 21% from January 1, 2018. In the first quarter of fiscal year 2019, we completed our assessment of the effects of the Act and recognized a tax benefit of $0.5 million related to our calculation of the transition tax liability, referred to as the "toll tax." In the year ending September 30, 2018, we recorded a toll tax charge of $9.4 million and a benefit of $10.5 million from reductions in our deferred tax liabilities. Our federal statutory income tax rate prior to December 31, 2017, was 35%; for subsequent periods, it was 21%. The provision for income taxes differs from that which would have resulted from the use of this rate is as follows: Year ended September 30, (in thousands) 2020 2019 2018 Federal income tax provision at statutory rate of 21%, 21% and 24.5%, respectively $ 60,284 $ 66,637 $ 73,396 State income taxes, net of federal benefit 17,480 14,825 12,348 Foreign taxation (463) 1,210 (1,531) Permanent items 2,200 2,682 1,176 Tax credits (4,149) (3,730) (2,438) Toll tax — (481) 9,425 Deferred tax liability - tax rate change — — (10,514) Vesting of equity compensation (2,038) (4,783) (2,849) Other (761) 465 (620) Provision for income taxes $ 72,553 $ 76,825 $ 78,393 The significant items comprising our deferred tax assets and liabilities as of September 30, 2020 and 2019, are as follows: As of September 30, (in thousands) 2020 2019 Net deferred tax assets/(liabilities) Costs deductible in future periods $ 24,127 $ 19,133 Deferred revenue 8,054 6,098 Stock compensation 4,140 3,617 Net operating loss carryforwards 252 798 Amortization of goodwill and intangible assets (27,555) (26,338) Capitalized software (10,076) (8,635) Accounts receivable - unbilled (11,565) (35,566) Property and equipment (2,365) 515 Prepaid expenses (4,245) (3,645) Other (3,589) (2,351) $ (22,822) $ (46,374) Our deferred tax assets and liabilities are held in various national and international jurisdictions that do not allow right of offset. Accordingly, our presentation of deferred taxes on our consolidated balance sheets is split between jurisdictions that show a net deferred tax asset and a net deferred tax liability. Our net deferred tax position is summarized below: As of September 30, (in thousands) 2020 2019 Balance of tax jurisdictions with net deferred tax assets $ 1,915 $ 186 Balance of tax jurisdictions with net deferred tax liabilities (24,737) (46,560) Net deferred tax liabilities $ (22,822) $ (46,374) We consider our foreign earnings in excess of the earnings subject to the one-time transition tax to be indefinitely reinvested outside of the U.S. in accordance with the relevant accounting guidance for income taxes. Accordingly, no U.S. deferred taxes were recorded with respect to such earnings. As of September 30, 2020, our foreign subsidiaries held approximately $44.4 million of cash and cash equivalents in either U.S. Dollars or local currencies. Cash paid for income taxes during the years ended September 30, 2020, 2019, and 2018, was $89.1 million, $69.2 million and $65.3 million, respectively. The provision for income taxes includes all provision to return adjustments included in the year recognized in the financial statements. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. The total amount of unrecognized tax benefits that, if recognized, would affect our annual effective income tax rate was $1.8 million and $3.6 million at September 30, 2020 and 2019, respectively. We report interest and penalties as a component of income tax expense. In the fiscal years ending September 30, 2020, 2019, and 2018, we recognized interest expense relating to unrecognized tax benefits of less than $0.1 million in each year. The net liability balance at September 30, 2020 and 2019, includes less than $0.1 million and approximately $0.8 million, respectively, of interest and penalties. We recognize and present uncertain tax positions on a gross basis (i.e., without regard to likely offsets for deferred tax assets, deductions and/or credits that would result from payment of uncertain tax amounts). The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: Year ended September 30, (in thousands) 2020 2019 2018 Balance at beginning of year $ 3,001 $ 721 $ 633 Increases for tax positions taken in current year 770 2,280 88 Decreases for tax positions taken in current year (1,973) — — Balance at end of year $ 1,798 $ 3,001 $ 721 We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. We are no longer subject to federal income tax examinations for years before 2017 and to state and local income tax examinations by tax authorities for years before 2015. In international jurisdictions, similar rules apply to filed income tax returns, although the tax examination limitations and requirements may vary. We are no longer subject to audit by tax authorities for foreign jurisdictions for years prior to 2016. In response to the COVID-19 pandemic, on March 18, 2020, the Families First Coronavirus Response Act (FFCRA) was enacted, and on March 27, 2020, the CARES Act was enacted. The FFCRA and the CARES Act contain numerous income tax provisions to assist companies from an income tax perspective. The following summarizes the most significant provisions and includes the impact to Maximus. • Eliminating the taxable income limitation and allowing companies to fully utilize Net Operating Losses (NOL’s) generated in the current year against prior years. Maximus is projecting a U.S. taxable income for the current year and will not be utilizing this provision. • Allowing NOL’s originating in fiscal years 2018 through 2020 to be carried back five years. This is non-applicable as Maximus had taxable income in each year. • Increasing the net interest expense deduction to 50% of adjusted taxable income from 30% for years beginning January 1, 2019 and 2020. The limitation for Maximus based on the current provision would be approximately $92.0 million, and as our interest expense in the current year is less than $2.1 million, we are not impacted by the limitation. • Allowing taxpayers with Alternative Minimum Tax (AMT) credits to claim a refund in 2020. Maximus does not have any AMT credits to utilize. • Allowing companies to deduct more of their cash charitable contributions paid during the calendar year by increasing the taxable income limitation from 10% to 25%. Maximus has never been limited in any year for charitable deductions and does not anticipate having any limitations in the current year. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Credit facilities Our corporate credit agreement provides for a revolving line of credit up to $400 million that may be used for revolving loans, swingline loans (subject to a sublimit of $5 million), and to request letters of credit, subject to a sub-limit of $50 million. The line of credit is available for general corporate purposes, including working capital, capital expenditures and acquisitions. Borrowings are permitted in currencies other than the U.S. Dollar. In September 2017, we extended the term of our credit agreement to September 2022, at which time all outstanding borrowings must be repaid. At September 30, 2020, we have no outstanding borrowings under the credit agreement. This credit agreement requires us to comply with covenants, including a maximum total leverage ratio and a minimum fixed charge coverage ratio. We were in compliance with all covenants as of September 30, 2020. Our obligations under the credit agreement are guaranteed by material domestic subsidiaries of the Company but are otherwise unsecured. In the event that our total leverage ratio, as defined in the credit agreement, exceeds 2.50:1, we would be obliged to provide security in the form of the assets of the parent Company and certain of its subsidiaries. Our credit agreement contains no restrictions on the payment of dividends as long as our leverage ratio does not exceed 2.50:1. At September 30, 2020, our total leverage ratio was less than 1.0:1.0. We do not believe that the provisions of the credit agreement represent a significant restriction to the successful operation of the business or to our ability to pay dividends. This credit agreement provides for an annual commitment fee payable on funds not borrowed or utilized for letters of credit. This charge is based upon our leverage and varies between 0.125% and 0.275%. Commitment fees are recorded as interest expense on the consolidated statements of operations. Borrowings under the Credit Agreement bear interest at our choice at either (a) a Base Rate plus a margin that varies between 0.0% and 0.75% per year, (b) a Eurocurrency Rate plus an applicable margin that varies between 1.0% and 1.75% per year or (c) an Index Rate plus an applicable margin which varies between 1.0% and 1.75% per year. The Base Rate, Eurocurrency Rate and Index Rate are defined by the Credit Agreement. In September 2020, we entered into a bilateral term facility agreement in Australia that provides for borrowings up to 65 million Australian Dollars. This may be used, among other purposes, for general corporate and working capital purposes. At September 30, 2020, we have outstanding borrowings of $21.4 million under this facility agreement, of which $3.6 million is due in fiscal year 2021. The bilateral term facility requires us to comply with a financial covenant, which states that the liquidity of our Australian business be equal to or greater than 25 million Australian Dollars. It provides for a quarterly commitment fee payable on the funds not borrowed or utilized at the rate of 0.80%. Borrowings under this credit facility bears interest at a Base Rate of 2.00% per annum plus the Australian Bank Bill Swap Bid Rate. In addition to our credit agreement, we established smaller facilities in Canada and the United Kingdom in order to allow our businesses to meet short-term working capital needs. In the event of a need for more significant funding, our credit facility provides for the ability to borrow in foreign currencies. At September 30, 2020, we have outstanding borrowings of $7.0 million under these facility agreements. At September 30, 2020, and 2019, we had letters of credit totaling $5.0 million and $3.2 million, respectively. Interest payments During the fiscal years ended September 30, 2020, 2019, and 2018, we made interest payments of $1.6 million, $2.5 million and $0.6 million, respectively. |
Balance sheet components
Balance sheet components | 12 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance sheet components | Balance sheet components Cash, cash equivalents and restricted cash We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Restricted cash represents funds that 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. We will continue to report our restricted cash balances within "prepaid expenses and other current assets" on our balance sheet due to these restrictions. Our balances for cash, cash equivalents and restricted cash are as follows: As of September 30, (in thousands) 2020 2019 2018 2017 Cash and cash equivalents $ 71,737 $ 105,565 $ 349,245 $ 166,252 Restricted cash (recorded within "prepaid expenses and other current assets") 16,824 10,927 7,314 13,475 Cash, cash equivalents and restricted cash $ 88,561 $ 116,492 $ 356,559 $ 179,727 Property and equipment Property and equipment, at cost, consists of the following: As of September 30, (in thousands) 2020 2019 Land $ 1,738 $ 1,738 Building and improvements 11,846 12,044 Office furniture and equipment 239,057 246,671 Leasehold improvements 84,063 69,183 336,704 329,636 Less: Accumulated depreciation and amortization (269,983) (230,047) Total property and equipment, net $ 66,721 $ 99,589 Depreciation expense for the years ended September 30, 2020, 2019, and 2018 was $54.9 million, $45.2 million and $40.7 million, respectively. Capitalized software Capitalized software consists of the following: As of September 30, (in thousands) 2020 2019 Capitalized software $ 120,677 $ 103,643 Less: Accumulated amortization (82,644) (71,274) Total capitalized software, net $ 38,033 $ 32,369 Amortization expense for the years ended September 30, 2020, 2019 and 2018 was $9.6 million, $7.2 million and $11.2 million, respectively. Most of this amortization was recorded within our "cost of revenue" on our consolidated statements of operations. The totals above include $0.6 million of costs which were capitalized and subsequently written off during the year ended September 30, 2020, with no comparable amounts for the year ended September 30, 2019. These costs are related to a contract within our U.S. Services Segment and are deemed unrecoverable. This expense was recorded within "cost of revenue" on our consolidated statements of operations. 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 that 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. Deferred contract costs consist of the following: As of September 30, (in thousands) 2020 2019 Deferred contract costs $ 42,421 $ 43,140 Less: Accumulated amortization (21,530) (24,219) Total deferred contract costs, net $ 20,891 $ 18,921 We amortized $6.8 million and $9.9 million of deferred contract costs during the years ended September 30, 2020, and 2019, respectively. This amortization was recorded within our "cost of revenue" on our consolidated statements of operations. The totals above include $0.6 million and $3.7 million of costs that were deferred and subsequently written off during the years ended September 30, 2020 and 2019, respectively. These costs related to a contract within our U.S. Services Segment, which is no longer able to recover the deferred costs. This expense was recorded within "cost of revenue" on our consolidated statements of operations. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Performance bonds Certain contracts require us to provide a surety bond as a guarantee of performance. At September 30, 2020, we had performance bond commitments totaling $36.5 million. These bonds are typically renewed annually and remain in place until the contractual obligations are satisfied. Although the triggering events vary from contract to contract, in general, we would only be liable for the amount of these guarantees in the event of default in our performance of our obligations under each contract, the probability of which we believe is remote. Collective bargaining agreements Approximately 6% of our employees are covered by collective bargaining agreements or similar arrangements, the majority of which expire within one year. 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. The Centers for Medicare and Medicaid Services (CMS) 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 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 associated with this work and that the school districts will be responsible for the remainder. We reserved our estimated fees earned from this engagement relating to the disallowances. We exited the federal healthcare-claiming business in 2009 and no longer provide the services at issue in this matter. The state contested the first disallowance of approximately $12 million in the U.S. District Court. In February 2020, the District Court upheld that disallowance, and the state appealed the case to the U.S. Circuit Court of Appeals. The second disallowance of approximately $19 million is still pending at the U.S. Health and Human Services Departmental Appeals Board. No legal action was initiated against us with respect to either disallowance. |
Equity
Equity | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity | Equity Stock compensation At September 30, 2020, 0.5 million shares remained available for grants under our 2017 Equity Incentive Plan. We typically issue new shares in satisfying our obligations under our stock plans. We grant equity awards to officers, employees and directors in the form of restricted stock units (RSUs). RSUs issued generally vest ratably over one four A summary of our RSU activity for the year ended September 30, 2020, is as follows: Shares Weighted-Average Non-vested shares outstanding at September 30, 2019 646,129 $ 62.60 Granted 382,795 74.26 Vested (371,971) 63.91 Forfeited (14,542) 65.30 Non-vested shares outstanding at September 30, 2020 642,411 68.73 In addition to the non-vested shares, certain directors and employees held approximately 0.6 million vested awards whose issuance has been deferred as of September 30, 2020. The weighted-average grant-date fair value of RSUs granted in the years ended September 30, 2019 and 2018, was $66.96 and $64.33, respectively. The total fair value of RSUs vested during the years ended September 30, 2020, 2019 and 2018 was $23.6 million, $27.4 million and $30.3 million, respectively. As of September 30, 2020, the total remaining unrecognized compensation cost related to unvested RSUs was $41.7 million. This expense is expected to be realized over the next four years, with a weighted average life of 1.5 years. The total income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements was $8.0 million, $9.9 million and $8.7 million for the fiscal years ended September 30, 2020, 2019 and 2018, respectively. Employees are permitted to forfeit a number of shares to cover their personal tax liability, with the Company making tax payments to the relevant authorities. These payments are reported in the consolidated statements of cash flows as financing cash flows. During the three years ending September 30, 2020, 2019 and 2018, we incurred liabilities related to these forfeitures of $9.8 million, $10.6 million and $8.7 million, respectively. Stock purchase programs 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 years ended September 30, 2020, 2019 and 2018, we purchased 2.8 million, 0.7 million and 1.1 million common shares at a cost of $167.0 million, $46.8 million and $67.6 million, respectively. At September 30, 2020, $150.0 million remained available for future stock repurchases. Between October 1, 2020, and November 19, 2020, we have made additional purchases of 0.1 million shares of common stock at a total cost of approximately $3.4 million. |
Employee benefit plans and defe
Employee benefit plans and deferred compensation | 12 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Employee benefit plans and deferred compensation | Employee benefit plans and deferred compensation We have 401(k) plans for the benefit of employees who meet certain eligibility requirements. The plans provide for Company match, specified Company contributions and discretionary Company contributions. During the years ended September 30, 2020, 2019 and 2018, we contributed $13.2 million, $12.3 million and $7.4 million to the 401(k) plans, respectively. Outside the U.S., we have a number of defined contribution pension plans. During the years ended September 30, 2020, 2019 and 2018, we contributed $18.6 million, $18.6 million, and $19.5 million to these plans, respectively. We also have a deferred compensation plan, which is a non-qualified plan available to a restricted number of highly compensated employees. The plan enables participants to defer compensation for tax purposes. These deferred employee contributions are held within a Rabbi Trust with investments directed by the respective employees. The assets of the Rabbi Trust are available to satisfy the claims of general creditors in the event of bankruptcy. The assets of the plan are sufficient to meet 91% of the liabilities as of September 30, 2020. The assets within the Rabbi Trust include $23.2 million invested in mutual funds that have quoted prices in active markets. These assets, as well as the related employee liabilities, are recorded at fair value, with changes in fair value being recorded in the consolidated statements of operations. |
Quarterly information (unaudite
Quarterly information (unaudited) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly information (unaudited) | Quarterly information (unaudited) Set forth below are selected quarterly consolidated statements of operations data for the fiscal years ended September 30, 2020 and 2019. We derived this information from unaudited quarterly financial statements that include, in the opinion of our management, all adjustments necessary for a fair presentation of the information for such periods. Results of operations for any fiscal quarter are not necessarily indicative of results for any future period. Earnings per share amounts are computed each quarter independently. As a result, the sum of the quarters' earnings per share amount may not equal the total earnings per share amount for the respective year. The results shown below are consistent with those reported in our quarterly financial reports, but we have included some additional detail from that previously presented. Quarter Ended (dollar in thousands, except per share data) Dec. 31, 2019 March 31, 2020 June 30, 2020 Sept. 30, 2020 U.S. Services $ 312,281 $ 308,698 $ 336,950 $ 371,345 U.S. Federal Services 366,571 393,391 450,143 423,232 Outside the U.S. 139,377 116,046 114,244 129,259 Revenue $ 818,229 $ 818,135 $ 901,337 $ 923,836 U.S. Services $ 89,590 $ 85,454 $ 93,029 $ 92,199 U.S. Federal Services 70,821 76,958 84,723 86,423 Outside the U.S. 15,039 (9,314) 7,851 18,229 Gross profit $ 175,450 $ 153,098 $ 185,603 $ 196,851 U.S. Services $ 58,192 $ 46,215 $ 61,033 $ 62,343 U.S. Federal Services 31,582 30,232 39,233 31,855 Outside the U.S. (1,014) (26,718) (5,817) (584) Amortization of intangible assets (9,088) (8,934) (8,712) (8,900) Acquisition-related expenses (635) (3,377) (150) (459) Gain on sale of a business — — 1,706 12 Other 98 (107) 16 256 Operating income $ 79,135 $ 37,311 $ 87,309 $ 84,523 Net income $ 58,734 $ 27,650 $ 64,464 $ 63,661 Net income attributable to Maximus $ 58,734 $ 27,650 $ 64,464 $ 63,661 Basic earnings per share $ 0.91 $ 0.43 $ 1.04 $ 1.03 Diluted earnings per share $ 0.91 $ 0.43 $ 1.04 $ 1.02 Quarter Ended (dollars in thousands, except per share data) Dec. 31, 2018 March 31, 2019 June 30, 2019 Sept. 30, 2019 U.S. Services $ 294,213 $ 290,737 $ 291,132 $ 300,406 U.S. Federal Services 216,987 289,736 292,295 312,179 Outside the U.S. 153,419 156,047 147,283 142,381 Revenue $ 664,619 $ 736,520 $ 730,710 $ 754,966 U.S. Services $ 88,031 $ 86,260 $ 86,664 $ 83,154 U.S. Federal Services 47,985 60,696 66,803 66,586 Outside the U.S. 23,249 22,466 20,780 18,510 Gross profit $ 159,265 $ 169,422 $ 174,247 $ 168,250 U.S. Services $ 55,892 $ 56,860 $ 54,250 $ 53,832 U.S. Federal Services 21,353 29,592 33,907 31,090 Outside the U.S. 4,441 4,474 4,989 2,157 Amortization of intangible assets (5,458) (9,519) (9,049) (9,028) Acquisition-related expenses (2,691) — — — Other 599 394 (503) (475) Operating income $ 74,136 $ 81,801 $ 83,594 $ 77,576 Net income $ 55,723 $ 61,766 $ 62,965 $ 60,041 Net income attributable to Maximus $ 55,913 $ 61,924 $ 62,898 $ 60,089 Basic earnings per share attributable to Maximus $ 0.86 $ 0.96 $ 0.98 $ 0.93 Diluted earnings per share attributable to Maximus $ 0.86 $ 0.96 $ 0.97 $ 0.93 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend On October 2, 2020, our Board of Directors declared a quarterly cash dividend of $0.28 for each share of the Company's common stock outstanding. The dividend will be paid on November 30, 2020, to shareholders of record on November 13, 2020. Based on the number of shares outstanding, the payment will be approximately $17.2 million. |
Business and summary of signi_2
Business and summary of significant accounting policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of Maximus, Inc. and its wholly-owned subsidiaries (the "financial statements"). All intercompany balances and transactions were eliminated in consolidation. Certain financial results were reclassified to conform with our current period presentation. |
Estimates | Estimates The preparation of these financial statements, in conformity with Generally Accepted Accounting Principles in the United States (GAAP), 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 Coronavirus (COVID-19) global 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 in the past. • Our balance sheet includes goodwill valued at $593.1 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, 2020 using a qualitative assessment. As of July 1, 2020, none of our reporting units showed any signs of impairment. • 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. Initial asset lives may be shortened based upon circumstances such as contract terminations or changes in capital strategy. Where this occurs, we may need to accelerate our depreciation or amortization charges. These assets 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 $786.2 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 year ended September 30, 2020, we recorded bad debt expense of $2.8 million. We reserved balances against customers who we believe that we may not be reimbursed for work performed. • As disclosed in "Note 3. Revenue recognition," revenue for some of 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 suffered a significant shock during the second quarter of the current fiscal year and many employment opportunities were 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, participants in programs prior to March 2020 experienced reduced opportunities to reach sustained employment. This resulted in revised estimates to our outcome fees and a reduction in our unbilled revenue balance. During the three months ended March 31, 2020, we recorded adjustments to revenue of approximately $24 million related to changes in estimates from these contracts. This reduced our net income and diluted earnings per share by approximately $18 million and $0.28, respectively. We have continued to update our estimates through the remainder of the year. At September 30, 2020 and 2019, we recorded $24.8 million and $47.0 million of these estimated outcome fees which will be collected when we reach the targets we anticipate. • Many of our contracts in U.S. 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, provided regular guidance, there is some uncertainty within other contracts as to recoverable costs. |
Changes in financial reporting adopted in fiscal year 2020, Anticipated changes in financial reporting | Changes in financial reporting adopted in fiscal year 2020 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 twelve 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 allow 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 corporate credit facility. (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, current portion — 88,276 88,276 Other current liabilities 12,709 (648) 12,061 Operating lease liabilities, less 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 therefore there was no net effect resulted from this change. Additional information and disclosures relating to this change are included within "Note 4. Leases." Anticipated changes in financial reporting 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, using a prospective approach. Accordingly, this standard will only affect our future financial statements. 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 do not expect the adoption of this standard or its application in future periods to have a material effect on our financial statements. 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 standard on October 1, 2020. The effect of this new standard will depend upon the outcome of future goodwill impairment tests. We are subject to agreements that reference the London Interbank Offering Rate (LIBOR). Between now and December 2022, we anticipate that agreements with LIBOR will be updated to reflect the transition from this rate to alternative reference rates. In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This standard is intended to provide temporary optional expedients and exceptions on contract modifications and hedge accounting to ease the financial reporting burdens related to this expected market transition. This standard is effective for all entities upon issuance through December 31, 2022. We are assessing the impact of the market transition and this standard. Other recent accounting pronouncements are not expected to have a material effect on our financial statements. |
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 twelve 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 allow 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. |
Revenue Recognition | Revenue Recognition Beginning October 1, 2018, we recognize revenue in accordance with Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . We adopted this standard using the modified retrospective method; accordingly, only periods after October 1, 2018, utilize Topic 606 . Under Topic 606 , we recognize revenue as, or when, we satisfy performance obligations under a contract. We account for a contract when the parties approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance and it is probable that we will collect substantially all of the consideration. A performance obligation is a promise in a contract to transfer a distinct good or service, or a series of distinct goods or services, to a customer. The transaction price of a contract must be allocated to each performance obligation and recognized as the performance obligation is satisfied. Although our services may have many components, these components are not necessarily distinct performance obligations as they may be interdependent on or interrelated to each other. Where our contracts contain more than one performance obligation, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each component. This method will vary from contract to contract. Where available, we utilize standalone selling prices of similar components. If this information is unavailable, we utilize a suitable metric to allocate selling price, such as costs incurred. The majority of our contracts have performance obligations that 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. This continuous transfer of control is supported by the unilateral right of many of our customers to terminate contracts for convenience, without having to provide justification for this decision. Where we are reimbursed on a cost-plus basis, we recognize revenue based upon our costs incurred to date; where we are reimbursed on a fixed price basis, we recognize revenue based upon an appropriate output measure that may be time elapsed or another measure within the contract. When we have variable fees, such as revenue related to the volume of work or award fees, we allocate that revenue to the distinct periods of service to which they relate. In estimating our variable fees, we are required to constrain our estimates to the extent that it is probable that there will not be a significant reversal of cumulative revenue when the uncertainty is resolved. Other performance obligations are satisfied at a point in time, rather than over time. We recognize revenue only when the customer received control over the goods provided. Revenue recognition on these performance obligations does not require a significant level of judgment or estimation. Where we have contract modifications, these are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. Where the modification changes the scope or price and the additional performance obligations are at their standalone selling price, these services are considered a separate contract. Where there is a modification and the additional performance obligations are not at their standalone selling price, we consider whether those performance obligations are distinct from those already delivered. If services are distinct from those already provided, the contract is accounted for prospectively, as though the original contract had been terminated and a new arrangement entered into. Where the modification includes goods or services which are not distinct from those already provided, we record a cumulative adjustment to revenue based upon a remeasurement of progress towards the complete satisfaction of performance obligations not yet fully delivered. |
Accounts receivable - billed, billable and unbilled and deferred revenue | Accounts receivable—billed, billable and unbilled and deferred revenue Billed receivables are balances where an invoice has been prepared and issued and is collectible under standard contract terms. Many of our clients require invoices to be prepared on a monthly basis. Where we anticipate that an invoice will be issued within a short period of time and where the funds are considered collectible within standard contract terms, we include this balance as billable accounts receivable. Both billed and billable balances are recorded at their face amount less an allowance for doubtful accounts. We re-evaluate our client receivables on a quarterly basis, especially receivables that are past due, and reassess our allowance for doubtful accounts based on specific client collection issues. We present unbilled receivables and deferred revenue as separate components of our consolidated balance sheets. These balances represent timing differences between when amounts are billed or billable and when revenue has been recognized or has occurred as of period end. The timing of these billings is generally driven by the contractual terms, which may have billing milestones that are different from revenue recognition milestones. Our unbilled receivables balance also includes retainage balances, where customers may hold back payment for work performed for a period of time to allow opportunities to evaluate the quality of our performance. The balance also includes estimated fees where performance outcomes are anticipated but have not yet been achieved. Our unbilled receivable balance is recorded at fair value that is the value which we expect to invoice for the services performed once the objective criteria laid out by the contract have been met. We defer revenue where we receive up-front funds to establish the infrastructure needed for a long-term contract. |
Business combinations and goodwill | Business combinations and goodwill The purchase price of an acquired business is allocated to tangible assets, separately identifiable intangible assets acquired and liabilities assumed based upon their respective fair values. Any excess balance is recorded as goodwill. Costs incurred directly related to an acquisition, including legal, accounting and valuation services, are expensed as incurred. Intangible assets are separately identified and recorded at fair value. These assets are amortized on a straight-line basis over useful lives estimated at the time of the business combination. Goodwill is not amortized but is subject to impairment testing on an annual basis, or more frequently if impairment indicators arise. Impairment testing is performed at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment (the component level) if discrete financial information is prepared and reviewed regularly by segment management. However, components are aggregated if they have similar economic characteristics. We have the option to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If we conclude that such an impairment is not more-likely-than-not in all cases, no impairment is recorded. If such an impairment is more-likely-than-not, or if we choose to bypass this qualitative assessment, an evaluation is performed by comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of the reporting unit. If the fair value of the reporting unit exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds the fair value, the goodwill of the reporting unit may be impaired. Our reporting units are consistent with our operating segments, U.S. Services, U.S. Federal Services and Outside the U.S. We perform our annual impairment test as of July 1 of each year. We performed the annual impairment test using the qualitative assessment as of July 1, 2020, and concluded it was not more likely than not that the fair value of the reporting units was less than the carrying amounts. |
Long-lived assets (excluding goodwill) | Long-lived assets (excluding goodwill) Property and equipment is recorded at cost. Depreciation is recorded over the assets' respective useful economic lives using the straight-line method, which are not to exceed 39 years for our buildings and 7 years for office furniture and equipment. Leasehold improvements are amortized over the shorter of their useful life or the remaining term of the lease. Repairs and maintenance costs are expensed as incurred. All of the Company's capitalized software represents development costs for software that is intended for our internal use. Direct costs of time and materials incurred for the development of application software for internal use are capitalized and depreciated using the straight-line method over the estimated useful life of the software, ranging from three Deferred contract costs consist of contractually recoverable direct set-up costs related to long-term service contracts. These costs include direct and incremental costs incurred prior to the commencement of providing service to our customer. These costs are expensed over the period the services are provided using the straight-line method. |
Income taxes | Income taxes Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities and are measured by applying enacted tax rates and laws for the taxable years in which those differences are expected to reverse. In addition, a valuation allowance is recorded if it is believed more likely than not that a deferred tax asset will not be fully realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would "more likely than not" sustain the position following an audit. For tax positions meeting the "more likely than not" threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. |
Foreign currency | Foreign currencyFor all foreign operations, the functional currency is the local currency. The assets and liabilities of foreign operations are translated into U.S. Dollars at period-end exchange rates, and revenue and expenses are translated at average exchange rates for the year. The resulting cumulative translation adjustment is included in accumulated other comprehensive loss on our consolidated balance sheets. Gains and losses from foreign currency transactions are included in "other income, net" on our consolidated statements of operations. |
Contingencies | Contingencies From time to time, we are involved in legal proceedings, including contract and employment claims. We assess the likelihood of any adverse judgments or outcomes to these contingencies, as well as potential ranges of probable losses and establish reserves accordingly. The amount of reserves required may change in future periods due to new developments in each matter or changes in approach to a matter, such as a change in settlement strategy. |
Fair value measurements | Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Assets and liabilities subject to fair value measurements are required to be disclosed within a fair value hierarchy. The fair value hierarchy ranks the quality and reliability of inputs used to determine fair value. Accordingly, assets and liabilities carried at or permitted to be carried at fair value are classified within the fair value hierarchy in one of the following categories based on the lowest level input that is significant in measuring fair value: Level 1 - Fair value is determined by using unadjusted quoted prices that are available in active markets for identical assets and liabilities. Level 2 - Fair value is determined by using inputs other than Level 1 quoted prices that are directly or indirectly observable. Inputs can include quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets and liabilities in inactive markets. Related inputs can also include those used in valuation or other pricing models such as interest rates and yield curves that can be corroborated by observable market data. Level 3 - Fair value is determined by using inputs that are unobservable and not corroborated by market data. Use of these inputs involves significant and subjective judgment. 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 approximate fair value due to the short-term nature of these balances. We hold investments in a Rabbi Trust on behalf of our deferred compensation plan. These assets are recorded on our consolidated balance sheets at fair value under the heading of "Deferred compensation plan assets." These assets have quoted prices in active markets (Level 1). See "Note 12. Employee benefit plans and deferred compensation" for further details. |
Business and summary of signi_3
Business and summary of significant accounting policies (Tables) | 12 Months Ended |
Sep. 30, 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 corporate credit facility. (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, current portion — 88,276 88,276 Other current liabilities 12,709 (648) 12,061 Operating lease liabilities, less current portion — 126,197 126,197 Other long-term liabilities 20,082 (8,392) 11,690 |
Business segments (Tables)
Business segments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of financial information for each of the Company's business segments | The results of these segments for the three years ended September 30, 2020, are shown below. Year ended September 30, (in thousands) 2020 2019 2018 Revenue: U.S. Services 1,329,274 $ 1,176,488 $ 1,213,911 U.S. Federal Services 1,633,337 1,111,197 478,911 Outside the U.S. 498,926 599,130 699,414 Total $ 3,461,537 $ 2,886,815 $ 2,392,236 Gross profit: U.S. Services $ 360,272 $ 344,109 $ 359,624 U.S. Federal Services 318,925 242,070 126,698 Outside the U.S. 31,805 85,005 108,063 Total $ 711,002 $ 671,184 $ 594,385 Selling, general and administrative expense: U.S. Services $ 132,489 $ 123,275 $ 140,990 U.S. Federal Services 186,023 126,128 69,312 Outside the U.S. 65,938 68,944 72,095 Gain on sale of a business (1) (1,718) — — Other (2) 4,358 2,676 2,844 Total $ 387,090 $ 321,023 $ 285,241 Operating income: U.S. Services $ 227,783 $ 220,834 $ 218,634 U.S. Federal Services 132,902 115,942 57,386 Outside the U.S. (34,133) 16,061 35,968 Amortization of intangible assets (35,634) (33,054) (10,308) Restructuring costs (3) — — (3,353) Acquisition-related expenses (4) (4,621) (2,691) (947) Gain on sale of a business (1) 1,718 — — Other 263 15 (1,897) Total $ 288,278 $ 317,107 $ 295,483 Depreciation and amortization: U.S. Services $ 20,951 $ 18,466 $ 20,963 U.S. Federal Services 25,153 16,802 8,478 Outside the U.S. 18,423 17,136 22,443 Total $ 64,527 $ 52,404 $ 51,884 (1) During fiscal year 2020, we sold Q2 Administrators LLC, a subsidiary within our U.S. Federal Services Segment, resulting in a gain. Refer to "Note 6. Business combinations and disposals" for more details . (2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment. (3) Restructuring costs incurred in the year ending September 30, 2018, were related to our United Kingdom businesses. |
Schedule of distribution of revenues | Our revenue was distributed as follows: Year ended September 30, (in thousands) 2020 2019 2018 United States $ 2,962,610 $ 2,287,685 $ 1,692,823 United Kingdom 246,335 293,695 347,026 Australia 147,156 198,795 247,850 Rest of World 105,436 106,640 104,537 Total $ 3,461,537 $ 2,886,815 $ 2,392,236 |
Schedule of identifiable assets by segment | Identifiable assets for the segments are shown below: Year ended September 30, (in thousands) 2020 2019 U.S. Services $ 702,728 $ 500,641 U.S. Federal Services 937,477 795,553 Outside the U.S. 224,532 234,769 Corporate/Other 159,965 214,769 Total $ 2,024,702 $ 1,745,732 |
Schedule of distribution of total long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets | Our long-lived assets, consisting of property and equipment, capitalized software costs, operating lease right-of-use assets and deferred compensation plan assets were distributed as follows: Year ended September 30, (in thousands) 2020 2019 United States $ 255,346 $ 134,511 Australia 30,183 11,950 Canada 24,522 14,681 United Kingdom 7,610 3,129 Rest of World 1,071 595 Total $ 318,732 $ 164,866 |
Revenue recognition (Tables)
Revenue recognition (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | By operating segment and service Year ended September 30, (in thousands) 2020 2019 Program administration 1,008,591 883,772 Assessments and appeals 141,446 136,109 Workforce and children services 127,595 100,454 Other 51,642 56,153 Total U.S. Services 1,329,274 1,176,488 Program administration 1,288,741 779,573 Technology solutions 169,259 160,342 Assessments and appeals 175,337 171,282 Total U.S. Federal Services 1,633,337 1,111,197 Workforce and children services 206,657 272,801 Assessments and appeals 218,704 252,447 Program administration 66,002 63,734 Other 7,563 10,148 Total Outside the U.S. 498,926 599,130 Total revenue 3,461,537 2,886,815 By contract type Year ended September 30, (in thousands) 2020 2019 Performance-based $ 1,109,153 $ 1,193,075 Cost-plus $ 1,578,912 $ 1,088,541 Fixed price $ 471,505 $ 441,146 Time and materials $ 301,967 $ 164,053 Total revenue $ 3,461,537 $ 2,886,815 By customer type Year ended September 30, (in thousands) 2020 2019 New York State government agencies $ 355,282 $ 362,724 Other U.S. state government agencies 988,945 804,213 Total U.S. state government agencies 1,344,227 1,166,937 United States Federal Government agencies 1,559,165 1,040,980 International government agencies 467,185 558,599 Other, including local municipalities and commercial customers 90,960 120,299 Total revenue $ 3,461,537 $ 2,886,815 |
Changes in Contract Assets | Changes in the reserves against accounts receivable were as follows: Year ended September 30, (in thousands) 2020 2019 2018 Balance at beginning of year $ 5,382 $ 4,285 $ 6,843 Additions to reserve 12,976 4,018 243 Deductions (12,307) (2,921) (2,801) Balance at end of year $ 6,051 $ 5,382 $ 4,285 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Costs | Costs recorded for the year ended September 30, 2020, are summarized below. (in thousands) Year ended September 30, 2020 Operating lease cost $ 102,811 Short-term lease cost 9,140 Variable lease cost 13,310 Total operating lease costs $ 125,261 |
Future Minimum Lease Payments | Future minimum lease payments for noncancelable operating leases as of September 30, 2020, are shown below. (in thousands) Office space Equipment Total For the years ended September 30, 2021 $ 76,588 $ 9,522 $ 86,110 2022 51,970 3,390 55,360 2023 29,876 525 30,401 2024 13,428 47 13,475 2025 8,570 6 8,576 Thereafter 1,587 — 1,587 Total minimum lease payments $ 182,019 $ 13,490 $ 195,509 Less: imputed interest (10,409) (341) (10,750) Total lease liabilities $ 171,610 $ 13,149 $ 184,759 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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: Year ended September 30, (in thousands) 2020 2019 2018 Weighted average shares outstanding 63,062 64,498 65,501 Dilutive effect of unvested restricted stock awards 260 322 431 Denominator for diluted earnings per share 63,322 64,820 65,932 |
Business combinations and dis_2
Business combinations and disposals (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date | The valuation of the assets acquired and liabilities assumed was as follows. (in thousands) Final purchase price allocation Cash consideration $ 430,723 Billed and unbilled receivables 142,077 Property and equipment 13,961 Other assets 4,530 Intangible assets 122,300 Total identifiable assets acquired 282,868 Accounts payable and other liabilities 36,785 Net identifiable assets acquired 246,083 Goodwill 184,640 Net assets acquired $ 430,723 |
Summary of valuation of the intangible assets acquired | (in thousands) Useful life Fair value Customer relationships - all contracts except U.S. Census 10 years $ 85,300 Customer relationship - U.S. Census 2 years 37,000 Total intangible assets $ 122,300 |
Business Acquisition, Pro Forma Information | The following table presents certain results for the years ended September 30, 2019 and 2018, as though the acquisition had occurred on October 1, 2017. The pro forma results below eliminate intercompany transactions, include amortization charges for acquired intangible assets, eliminate pre-acquisition transaction costs and include estimates of interest expense, as well as corresponding changes in our tax charge. This pro forma information is presented for information only. For example, this pro forma information does not include any of our synergies but does include, in both years shown, a charge of $18.5 million, related to the amortization of the U.S. Census customer relationship intangible asset. Although the U.S. Census contract commenced prior to October 1, 2017, more of the benefit was recorded in fiscal year 2020. For these and other reasons, this pro forma information is not necessarily indicative of the results if the acquisition had taken place on that date. Pro forma results for the year ended September 30, (dollars in thousands, except per share data) 2019 2018 Revenue $ 2,985,244 $ 3,016,823 Net income 243,968 218,647 Basic earnings per share attributable to Maximus 3.79 3.34 Diluted earnings per share attributed to Maximus 3.77 3.32 |
Schedule of changes in the carrying amount of goodwill | Changes in goodwill for the years ended September 30, 2020 and 2019, are shown below. (in thousands) U.S. Services U.S. Federal Outside the U.S. Total Balance as of September 30, 2018 $ 139,588 $ 228,148 $ 32,146 $ 399,882 Acquisition of citizen engagement centers business 24,884 154,470 5,286 184,640 Acquisition of GT Hiring — — 1,347 1,347 Other — — 372 372 Foreign currency translation — — (1,772) (1,772) Balance as of September 30, 2019 164,472 382,618 37,379 584,469 Acquisitions — — 7,652 7,652 Disposal of Q2 Administrators, LLC — (899) — (899) Foreign currency translation — — 1,907 1,907 Balance as of September 30, 2020 $ 164,472 $ 381,719 $ 46,938 $ 593,129 |
Schedule of components of intangible assets | The following table sets forth the components of intangible assets: As of September 30, 2020 As of September 30, 2019 (in thousands) Cost Accumulated Intangible Cost Accumulated Intangible Customer contracts and relationships $ 235,287 $ 90,302 $ 144,985 $ 250,455 $ 72,430 $ 178,025 Technology-based intangible assets 5,631 4,723 908 5,613 4,405 1,208 Trademarks and trade names 4,479 4,479 — 4,483 4,466 17 Total $ 245,397 $ 99,504 $ 145,893 $ 260,551 $ 81,301 $ 179,250 |
Schedule of estimated future amortization expense | The estimated future amortization expense for the next five years for the intangible assets held by the Company as of September 30, 2020, is as follows: (in thousands) Estimated Future Amortization Expense 2021 $ 18,969 2022 16,596 2023 16,498 2024 16,374 2025 16,152 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of income from continuing operations before income taxes | The components of income before income taxes and the corresponding provision for income taxes are as follows: Year ended September 30, (in thousands) 2020 2019 2018 Income before income taxes: United States $ 304,240 $ 280,092 $ 248,360 Foreign (17,178) 37,228 50,849 Income before income taxes $ 287,062 $ 317,320 $ 299,209 |
Provision for income taxes | Year ended September 30, (in thousands) 2020 2019 2018 Current provision/(benefit): Federal $ 65,735 $ 37,123 $ 42,318 State and local 28,117 14,480 13,459 Foreign (2,154) 12,561 15,895 Total current provision 91,698 64,164 71,672 Deferred tax expense/(benefit): Federal (12,984) 12,627 4,106 State and local (4,246) 3,013 2,902 Foreign (1,915) (2,979) (287) Total deferred tax expense/(benefit) (19,145) 12,661 6,721 Provision for income taxes $ 72,553 $ 76,825 $ 78,393 |
Reconciliation of tax provision using the federal statutory income tax rate to reported provision | The provision for income taxes differs from that which would have resulted from the use of this rate is as follows: Year ended September 30, (in thousands) 2020 2019 2018 Federal income tax provision at statutory rate of 21%, 21% and 24.5%, respectively $ 60,284 $ 66,637 $ 73,396 State income taxes, net of federal benefit 17,480 14,825 12,348 Foreign taxation (463) 1,210 (1,531) Permanent items 2,200 2,682 1,176 Tax credits (4,149) (3,730) (2,438) Toll tax — (481) 9,425 Deferred tax liability - tax rate change — — (10,514) Vesting of equity compensation (2,038) (4,783) (2,849) Other (761) 465 (620) Provision for income taxes $ 72,553 $ 76,825 $ 78,393 |
Significant items comprising the Company's deferred tax assets and liabilities | The significant items comprising our deferred tax assets and liabilities as of September 30, 2020 and 2019, are as follows: As of September 30, (in thousands) 2020 2019 Net deferred tax assets/(liabilities) Costs deductible in future periods $ 24,127 $ 19,133 Deferred revenue 8,054 6,098 Stock compensation 4,140 3,617 Net operating loss carryforwards 252 798 Amortization of goodwill and intangible assets (27,555) (26,338) Capitalized software (10,076) (8,635) Accounts receivable - unbilled (11,565) (35,566) Property and equipment (2,365) 515 Prepaid expenses (4,245) (3,645) Other (3,589) (2,351) $ (22,822) $ (46,374) Our deferred tax assets and liabilities are held in various national and international jurisdictions that do not allow right of offset. Accordingly, our presentation of deferred taxes on our consolidated balance sheets is split between jurisdictions that show a net deferred tax asset and a net deferred tax liability. Our net deferred tax position is summarized below: As of September 30, (in thousands) 2020 2019 Balance of tax jurisdictions with net deferred tax assets $ 1,915 $ 186 Balance of tax jurisdictions with net deferred tax liabilities (24,737) (46,560) Net deferred tax liabilities $ (22,822) $ (46,374) |
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits | The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows: Year ended September 30, (in thousands) 2020 2019 2018 Balance at beginning of year $ 3,001 $ 721 $ 633 Increases for tax positions taken in current year 770 2,280 88 Decreases for tax positions taken in current year (1,973) — — Balance at end of year $ 1,798 $ 3,001 $ 721 |
Balance sheet components (Table
Balance sheet components (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Cash and Cash Equivalents | Our balances for cash, cash equivalents and restricted cash are as follows: As of September 30, (in thousands) 2020 2019 2018 2017 Cash and cash equivalents $ 71,737 $ 105,565 $ 349,245 $ 166,252 Restricted cash (recorded within "prepaid expenses and other current assets") 16,824 10,927 7,314 13,475 Cash, cash equivalents and restricted cash $ 88,561 $ 116,492 $ 356,559 $ 179,727 |
Restrictions on Cash and Cash Equivalents | Our balances for cash, cash equivalents and restricted cash are as follows: As of September 30, (in thousands) 2020 2019 2018 2017 Cash and cash equivalents $ 71,737 $ 105,565 $ 349,245 $ 166,252 Restricted cash (recorded within "prepaid expenses and other current assets") 16,824 10,927 7,314 13,475 Cash, cash equivalents and restricted cash $ 88,561 $ 116,492 $ 356,559 $ 179,727 |
Schedule of property, plant and equipment | Property and equipment, at cost, consists of the following: As of September 30, (in thousands) 2020 2019 Land $ 1,738 $ 1,738 Building and improvements 11,846 12,044 Office furniture and equipment 239,057 246,671 Leasehold improvements 84,063 69,183 336,704 329,636 Less: Accumulated depreciation and amortization (269,983) (230,047) Total property and equipment, net $ 66,721 $ 99,589 |
Components of capitalized software | Capitalized software consists of the following: As of September 30, (in thousands) 2020 2019 Capitalized software $ 120,677 $ 103,643 Less: Accumulated amortization (82,644) (71,274) Total capitalized software, net $ 38,033 $ 32,369 |
Deferred contract costs | Deferred contract costs consist of the following: As of September 30, (in thousands) 2020 2019 Deferred contract costs $ 42,421 $ 43,140 Less: Accumulated amortization (21,530) (24,219) Total deferred contract costs, net $ 20,891 $ 18,921 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Company's RSU activity | A summary of our RSU activity for the year ended September 30, 2020, is as follows: Shares Weighted-Average Non-vested shares outstanding at September 30, 2019 646,129 $ 62.60 Granted 382,795 74.26 Vested (371,971) 63.91 Forfeited (14,542) 65.30 Non-vested shares outstanding at September 30, 2020 642,411 68.73 |
Quarterly information (unaudi_2
Quarterly information (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of selected quarterly income statement data | Earnings per share amounts are computed each quarter independently. As a result, the sum of the quarters' earnings per share amount may not equal the total earnings per share amount for the respective year. The results shown below are consistent with those reported in our quarterly financial reports, but we have included some additional detail from that previously presented. Quarter Ended (dollar in thousands, except per share data) Dec. 31, 2019 March 31, 2020 June 30, 2020 Sept. 30, 2020 U.S. Services $ 312,281 $ 308,698 $ 336,950 $ 371,345 U.S. Federal Services 366,571 393,391 450,143 423,232 Outside the U.S. 139,377 116,046 114,244 129,259 Revenue $ 818,229 $ 818,135 $ 901,337 $ 923,836 U.S. Services $ 89,590 $ 85,454 $ 93,029 $ 92,199 U.S. Federal Services 70,821 76,958 84,723 86,423 Outside the U.S. 15,039 (9,314) 7,851 18,229 Gross profit $ 175,450 $ 153,098 $ 185,603 $ 196,851 U.S. Services $ 58,192 $ 46,215 $ 61,033 $ 62,343 U.S. Federal Services 31,582 30,232 39,233 31,855 Outside the U.S. (1,014) (26,718) (5,817) (584) Amortization of intangible assets (9,088) (8,934) (8,712) (8,900) Acquisition-related expenses (635) (3,377) (150) (459) Gain on sale of a business — — 1,706 12 Other 98 (107) 16 256 Operating income $ 79,135 $ 37,311 $ 87,309 $ 84,523 Net income $ 58,734 $ 27,650 $ 64,464 $ 63,661 Net income attributable to Maximus $ 58,734 $ 27,650 $ 64,464 $ 63,661 Basic earnings per share $ 0.91 $ 0.43 $ 1.04 $ 1.03 Diluted earnings per share $ 0.91 $ 0.43 $ 1.04 $ 1.02 Quarter Ended (dollars in thousands, except per share data) Dec. 31, 2018 March 31, 2019 June 30, 2019 Sept. 30, 2019 U.S. Services $ 294,213 $ 290,737 $ 291,132 $ 300,406 U.S. Federal Services 216,987 289,736 292,295 312,179 Outside the U.S. 153,419 156,047 147,283 142,381 Revenue $ 664,619 $ 736,520 $ 730,710 $ 754,966 U.S. Services $ 88,031 $ 86,260 $ 86,664 $ 83,154 U.S. Federal Services 47,985 60,696 66,803 66,586 Outside the U.S. 23,249 22,466 20,780 18,510 Gross profit $ 159,265 $ 169,422 $ 174,247 $ 168,250 U.S. Services $ 55,892 $ 56,860 $ 54,250 $ 53,832 U.S. Federal Services 21,353 29,592 33,907 31,090 Outside the U.S. 4,441 4,474 4,989 2,157 Amortization of intangible assets (5,458) (9,519) (9,049) (9,028) Acquisition-related expenses (2,691) — — — Other 599 394 (503) (475) Operating income $ 74,136 $ 81,801 $ 83,594 $ 77,576 Net income $ 55,723 $ 61,766 $ 62,965 $ 60,041 Net income attributable to Maximus $ 55,913 $ 61,924 $ 62,898 $ 60,089 Basic earnings per share attributable to Maximus $ 0.86 $ 0.96 $ 0.98 $ 0.93 Diluted earnings per share attributable to Maximus $ 0.86 $ 0.96 $ 0.97 $ 0.93 |
Business and summary of signi_4
Business and summary of significant accounting policies - Narrative (Details) | Jul. 01, 2020USD ($) | Mar. 31, 2020USD ($)$ / shares | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Oct. 01, 2019USD ($) |
Property and Equipment | ||||||
Goodwill | $ 593,129,000 | $ 584,469,000 | $ 399,882,000 | |||
Number of business segments | segment | 3 | |||||
Accounts receivable | $ 786,200,000 | |||||
Bad debt expense | 2,800,000 | |||||
Revenue adjustment | $ 24,000,000 | |||||
Earnings per share adjustment (in dollars per share) | $ / shares | $ 0.28 | |||||
Net income adjustment | $ 18,000,000 | |||||
Total lease liabilities | 184,759,000 | |||||
Goodwill, impairment loss | $ 0 | |||||
Impairment of long-lived assets held-for-use | 0 | |||||
Accounting Standards Update 2016-02 | ||||||
Property and Equipment | ||||||
Total lease liabilities | $ 214,500,000 | |||||
Office space | ||||||
Property and Equipment | ||||||
Total lease liabilities | $ 171,610,000 | |||||
Office space | Maximum | ||||||
Property and Equipment | ||||||
Estimated useful lives | 39 years | |||||
Office furniture and equipment. | Maximum | ||||||
Property and Equipment | ||||||
Estimated useful lives | 7 years | |||||
Software development costs. | Minimum | ||||||
Property and Equipment | ||||||
Estimated useful lives | 3 years | |||||
Software development costs. | Maximum | ||||||
Property and Equipment | ||||||
Estimated useful lives | 8 years | |||||
U.S. Services | ||||||
Property and Equipment | ||||||
Goodwill | $ 164,472,000 | 164,472,000 | $ 139,588,000 | |||
Impairment of long-lived assets held-for-use | $ 1,200,000 | $ 3,700,000 |
Business and summary of signi_5
Business and summary of significant accounting policies - Changes Due to Adoption of Topic 842 (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 |
ASSETS | |||
Prepaid expenses and other current assets | $ 72,543 | $ 56,350 | $ 62,481 |
Operating lease right-of-use assets | 177,159 | 206,314 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Accounts payable and accrued expenses | 253,338 | 172,536 | 177,786 |
Operating lease liabilities, current portion | 80,748 | 88,276 | |
Other current liabilities | 22,071 | 12,061 | 12,709 |
Operating lease liabilities, less current portion | 104,011 | 126,197 | |
Other liabilities | $ 8,985 | 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 expenses | (5,250) | ||
Operating lease liabilities, current portion | 88,276 | ||
Other current liabilities | (648) | ||
Operating lease liabilities, less current portion | 126,197 | ||
Other liabilities | $ (8,392) |
Business segments - Schedule of
Business segments - Schedule of Segment Reporting Results By Segment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of business segments | segment | 3 | ||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | $ 923,836 | $ 901,337 | $ 818,135 | $ 818,229 | $ 754,966 | $ 730,710 | $ 736,520 | $ 664,619 | $ 3,461,537 | $ 2,886,815 | $ 2,392,236 |
Gross profit | 196,851 | 185,603 | 153,098 | 175,450 | 168,250 | 174,247 | 169,422 | 159,265 | 711,002 | 671,184 | 594,385 |
Selling, general and administrative expense | 387,090 | 321,023 | 285,241 | ||||||||
Operating income | 84,523 | 87,309 | 37,311 | 79,135 | 77,576 | 83,594 | 81,801 | 74,136 | 288,278 | 317,107 | 295,483 |
Amortization of intangible assets | (35,634) | (33,054) | (10,308) | ||||||||
Gain on sale of a business | 1,718 | 0 | 0 | ||||||||
Depreciation and amortization | 64,527 | 52,404 | 51,884 | ||||||||
Segment Reconciling Items | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Selling, general and administrative expense | 4,358 | 2,676 | 2,844 | ||||||||
Amortization of intangible assets | (8,900) | (8,712) | (8,934) | (9,088) | (9,028) | (9,049) | (9,519) | (5,458) | (35,634) | (33,054) | (10,308) |
Restructuring costs | 0 | 0 | (3,353) | ||||||||
Acquisition-related expenses | (459) | (150) | (3,377) | (635) | 0 | 0 | 0 | (2,691) | (4,621) | (2,691) | (947) |
Gain on sale of a business | 12 | 1,706 | 0 | 0 | 1,718 | 0 | 0 | ||||
Other | 263 | 15 | (1,897) | ||||||||
U.S. Services | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 1,329,274 | 1,176,488 | |||||||||
U.S. Services | Operating segments | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 371,345 | 336,950 | 308,698 | 312,281 | 300,406 | 291,132 | 290,737 | 294,213 | 1,329,274 | 1,176,488 | 1,213,911 |
Gross profit | 92,199 | 93,029 | 85,454 | 89,590 | 83,154 | 86,664 | 86,260 | 88,031 | 360,272 | 344,109 | 359,624 |
Selling, general and administrative expense | 132,489 | 123,275 | 140,990 | ||||||||
Operating income | 62,343 | 61,033 | 46,215 | 58,192 | 53,832 | 54,250 | 56,860 | 55,892 | 227,783 | 220,834 | 218,634 |
Depreciation and amortization | 20,951 | 18,466 | 20,963 | ||||||||
U.S. Federal Services | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 1,633,337 | 1,111,197 | |||||||||
U.S. Federal Services | Operating segments | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 423,232 | 450,143 | 393,391 | 366,571 | 312,179 | 292,295 | 289,736 | 216,987 | 1,633,337 | 1,111,197 | 478,911 |
Gross profit | 86,423 | 84,723 | 76,958 | 70,821 | 66,586 | 66,803 | 60,696 | 47,985 | 318,925 | 242,070 | 126,698 |
Selling, general and administrative expense | 186,023 | 126,128 | 69,312 | ||||||||
Operating income | 31,855 | 39,233 | 30,232 | 31,582 | 31,090 | 33,907 | 29,592 | 21,353 | 132,902 | 115,942 | 57,386 |
Depreciation and amortization | 25,153 | 16,802 | 8,478 | ||||||||
Outside the U.S. | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 498,926 | 599,130 | |||||||||
Outside the U.S. | Operating segments | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 129,259 | 114,244 | 116,046 | 139,377 | 142,381 | 147,283 | 156,047 | 153,419 | 498,926 | 599,130 | 699,414 |
Gross profit | 18,229 | 7,851 | (9,314) | 15,039 | 18,510 | 20,780 | 22,466 | 23,249 | 31,805 | 85,005 | 108,063 |
Selling, general and administrative expense | 65,938 | 68,944 | 72,095 | ||||||||
Operating income | $ (584) | $ (5,817) | $ (26,718) | $ (1,014) | $ 2,157 | $ 4,989 | $ 4,474 | $ 4,441 | (34,133) | 16,061 | 35,968 |
Depreciation and amortization | $ 18,423 | $ 17,136 | $ 22,443 |
Business segments - Revenue fro
Business segments - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues and total long-lived assets | |||||||||||
Revenue | $ 923,836 | $ 901,337 | $ 818,135 | $ 818,229 | $ 754,966 | $ 730,710 | $ 736,520 | $ 664,619 | $ 3,461,537 | $ 2,886,815 | $ 2,392,236 |
United States | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenue | 2,962,610 | 2,287,685 | 1,692,823 | ||||||||
United Kingdom | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenue | 246,335 | 293,695 | 347,026 | ||||||||
Australia | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenue | 147,156 | 198,795 | 247,850 | ||||||||
Rest of World | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenue | $ 105,436 | $ 106,640 | $ 104,537 |
Business segments - Schedule _2
Business segments - Schedule of Identifiable Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 2,024,702 | $ 1,745,732 |
Operating segments | U.S. Services | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 702,728 | 500,641 |
Operating segments | U.S. Federal Services | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 937,477 | 795,553 |
Operating segments | Outside the U.S. | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 224,532 | 234,769 |
Corporate/Other | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 159,965 | $ 214,769 |
Business segments - Schedule _3
Business segments - Schedule of Long-Lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 318,732 | $ 164,866 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 255,346 | 134,511 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 30,183 | 11,950 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 24,522 | 14,681 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 7,610 | 3,129 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 1,071 | $ 595 |
Revenue recognition - Disaggreg
Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 923,836 | $ 901,337 | $ 818,135 | $ 818,229 | $ 754,966 | $ 730,710 | $ 736,520 | $ 664,619 | $ 3,461,537 | $ 2,886,815 | $ 2,392,236 |
Total U.S. state government agencies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,344,227 | 1,166,937 | |||||||||
New York State government agencies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 355,282 | 362,724 | |||||||||
Other U.S. state government agencies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 988,945 | 804,213 | |||||||||
United States Federal Government agencies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,559,165 | 1,040,980 | |||||||||
International government agencies | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 467,185 | 558,599 | |||||||||
Other, including local municipalities and commercial customers | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 90,960 | 120,299 | |||||||||
Performance-based | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,109,153 | 1,193,075 | |||||||||
Cost-plus | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,578,912 | 1,088,541 | |||||||||
Fixed price | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 471,505 | 441,146 | |||||||||
Time and materials | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 301,967 | 164,053 | |||||||||
U.S. Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,329,274 | 1,176,488 | |||||||||
U.S. Federal Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,633,337 | 1,111,197 | |||||||||
Outside the U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 498,926 | 599,130 | |||||||||
Program administration | U.S. Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,008,591 | 883,772 | |||||||||
Program administration | U.S. Federal Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,288,741 | 779,573 | |||||||||
Program administration | Outside the U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 66,002 | 63,734 | |||||||||
Assessments and appeals | U.S. Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 141,446 | 136,109 | |||||||||
Assessments and appeals | U.S. Federal Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 175,337 | 171,282 | |||||||||
Assessments and appeals | Outside the U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 218,704 | 252,447 | |||||||||
Workforce and children services | U.S. Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 127,595 | 100,454 | |||||||||
Workforce and children services | Outside the U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 206,657 | 272,801 | |||||||||
Other | U.S. Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 51,642 | 56,153 | |||||||||
Other | Outside the U.S. | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 7,563 | 10,148 | |||||||||
Technology solutions | U.S. Federal Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 169,259 | $ 160,342 |
Revenue recognition - Narrative
Revenue recognition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, revenue recognized | $ 54,600 | $ 39,900 |
Accounts receivable — unbilled | 163,332 | 123,884 |
Cumulative catch-up adjustment to revenue from change in estimates | (9,200) | (10,900) |
Unbilled receivables | 12,300 | 11,500 |
Future Outcomes | Performance-based | Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue, revenue recognized | 45,000 | |
Accounts receivable — unbilled | $ 24,800 | $ 47,000 |
Revenue recognition - Remaining
Revenue recognition - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 400 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50.00% |
Revenue, remaining performance obligation, period | 12 months |
Revenue recognition - Accounts
Revenue recognition - Accounts Receivable Reserves (Details) - Accounts receivable, billed and unbilled - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in the reserves against current billed accounts receivable | |||
Balance at beginning of year | $ 5,382 | $ 4,285 | $ 6,843 |
Additions to reserve | 12,976 | 4,018 | 243 |
Deductions | (12,307) | (2,921) | (2,801) |
Balance at end of year | $ 6,051 | $ 5,382 | $ 4,285 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Weighted average incremental borrowing rate | 3.80% |
Weighted average remaining lease term | 2 years 9 months 18 days |
Operating lease payments | $ 109.4 |
Operating lease liabilities arising from new or remeasured right-of-use assets | $ 72.7 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 102,811 |
Short-term lease cost | 9,140 |
Variable lease cost | 13,310 |
Total operating lease costs | $ 125,261 |
Leases - Remaining Lease Paymen
Leases - Remaining Lease Payments (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Lessee, Lease, Description [Line Items] | |
2021 | $ 86,110 |
2022 | 55,360 |
2023 | 30,401 |
2024 | 13,475 |
2025 | 8,576 |
Thereafter | 1,587 |
Total minimum lease payments | 195,509 |
Less: imputed interest | (10,750) |
Total lease liabilities | 184,759 |
Office space | |
Lessee, Lease, Description [Line Items] | |
2021 | 76,588 |
2022 | 51,970 |
2023 | 29,876 |
2024 | 13,428 |
2025 | 8,570 |
Thereafter | 1,587 |
Total minimum lease payments | 182,019 |
Less: imputed interest | (10,409) |
Total lease liabilities | 171,610 |
Equipment | |
Lessee, Lease, Description [Line Items] | |
2021 | 9,522 |
2022 | 3,390 |
2023 | 525 |
2024 | 47 |
2025 | 6 |
Thereafter | 0 |
Total minimum lease payments | 13,490 |
Less: imputed interest | (341) |
Total lease liabilities | $ 13,149 |
Earnings per share - Schedule o
Earnings per share - Schedule of the Components of Basic and Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |||
Weighted average shares outstanding (in shares) | 63,062 | 64,498 | 65,501 |
Dilutive effect of unvested restricted stock awards (in shares) | 260 | 322 | 431 |
Denominator for diluted earnings per share (in shares) | 63,322 | 64,820 | 65,932 |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unvested restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Awards excluded from the calculation of diluted earnings per share (in shares) | 215,000 | 10,000 | 5,000 |
Business combinations and dis_3
Business combinations and disposals - Narrative (Details) $ in Thousands, $ in Millions, $ in Millions, ₩ in Billions | Aug. 21, 2020USD ($) | Aug. 21, 2020KRW (₩) | May 01, 2020USD ($) | Feb. 28, 2020USD ($) | Feb. 28, 2020AUD ($) | Aug. 16, 2019USD ($) | Aug. 16, 2019CAD ($) | Nov. 16, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Aug. 21, 2020KRW (₩) | Feb. 28, 2020AUD ($) |
Business Acquisition [Line Items] | ||||||||||||||
Amortization of intangible assets | $ 35,634 | $ 33,054 | $ 10,308 | |||||||||||
Goodwill | $ 584,469 | 593,129 | 584,469 | 399,882 | ||||||||||
Proceeds from sale of business | 3,250 | 0 | 0 | |||||||||||
Gain on sale of a business | $ 1,718 | 0 | 0 | |||||||||||
Number of business segments | segment | 3 | |||||||||||||
Q2 Administrators LLC | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Proceeds from sale of business | $ 3,100 | |||||||||||||
Gain on sale of a business | $ 1,700 | |||||||||||||
General Dynamics Information Technology's Citizen Engagement Centers | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Cash payment to acquire business | $ 400,000 | |||||||||||||
Estimated cash consideration | $ 430,700 | $ 430,723 | ||||||||||||
Acquisition-related expenses | 2,700 | $ 500 | ||||||||||||
Intangible assets acquired | 122,300 | |||||||||||||
Revenue from acquisition | 615,100 | |||||||||||||
Gross profit from acquisition | $ 117,400 | |||||||||||||
Goodwill | 184,640 | |||||||||||||
Intangible assets | 122,300 | |||||||||||||
General Dynamics Information Technology's Citizen Engagement Centers | Customer relationships - all contracts except U.S. Census | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets acquired | $ 85,300 | |||||||||||||
Weighted average remaining life of assets not fully amortized | 10 years | |||||||||||||
General Dynamics Information Technology's Citizen Engagement Centers | Customer relationships, U.S. decennial census | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Weighted average remaining life of assets not fully amortized | 7 years 7 months 6 days | |||||||||||||
General Dynamics Information Technology's Citizen Engagement Centers | Customer relationship - U.S. Census | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets acquired | $ 37,000 | |||||||||||||
Weighted average remaining life of assets not fully amortized | 2 years | |||||||||||||
General Dynamics Information Technology's Citizen Engagement Centers | Customer relationship - U.S. Census | Pro Forma | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization of intangible assets | $ 18,500 | 18,500 | ||||||||||||
GT Hiring Solutions | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Cash payment to acquire business | $ 6,200 | $ 8.2 | ||||||||||||
Weighted average remaining life of assets not fully amortized | 7 years | 7 years | ||||||||||||
Share capital acquired (as a percent) | 100.00% | |||||||||||||
Goodwill | $ 2,100 | |||||||||||||
Intangible assets | $ 2,200 | |||||||||||||
InjuryNet | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Cash payment to acquire business | $ 4,400 | $ 6.7 | ||||||||||||
Share capital acquired (as a percent) | 100.00% | 100.00% | ||||||||||||
Goodwill | $ 2,600 | |||||||||||||
Intangible assets | 900 | |||||||||||||
Contingent consideration | $ 2,100 | $ 3.1 | ||||||||||||
Index Root | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Cash payment to acquire business | $ 5,400 | ₩ 6.3 | ||||||||||||
Share capital acquired (as a percent) | 100.00% | 100.00% | ||||||||||||
Goodwill | $ 4,600 | |||||||||||||
Intangible assets | 1,400 | |||||||||||||
Contingent consideration | $ 900 | ₩ 1.1 | ||||||||||||
United Kingdom Subsidiary | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase of non-controlling interest by parent | 400 | |||||||||||||
Saudi Arabia Subsidiary | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Purchase of non-controlling interest by parent | $ 200 |
Business combinations and dis_4
Business combinations and disposals - Schedule of Assets and Liabilities Recorded in the Company's Financial Statements (Details) - USD ($) $ in Thousands | Nov. 16, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
Goodwill | $ 593,129 | $ 584,469 | $ 399,882 | |
General Dynamics Information Technology's Citizen Engagement Centers | ||||
Business Combination, Consideration Transferred | ||||
Cash consideration | $ 430,700 | 430,723 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||
Billed and unbilled receivables | 142,077 | |||
Property and equipment | 13,961 | |||
Other assets | 4,530 | |||
Intangible assets | 122,300 | |||
Total identifiable assets acquired | 282,868 | |||
Accounts payable and other liabilities | 36,785 | |||
Net identifiable assets acquired | 246,083 | |||
Goodwill | 184,640 | |||
Net assets acquired | $ 430,723 |
Business combinations and dis_5
Business combinations and disposals - Schedule of the Valuation of the Intangible Assets Acquired (Details) - General Dynamics Information Technology's Citizen Engagement Centers $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Components of intangible assets | |
Fair value | $ 122,300 |
Customer relationships - all contracts except U.S. Census | |
Components of intangible assets | |
Useful life | 10 years |
Fair value | $ 85,300 |
Customer relationship - U.S. Census | |
Components of intangible assets | |
Useful life | 2 years |
Fair value | $ 37,000 |
Business combinations and dis_6
Business combinations and disposals - Pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Business Combinations [Abstract] | ||
Revenue | $ 2,985,244 | $ 3,016,823 |
Net income | $ 243,968 | $ 218,647 |
Basic earnings per share attributable to MAXIMUS (in dollars per share) | $ 3.79 | $ 3.34 |
Diluted earnings per share attributable to MAXIMUS (in shares) | $ 3.77 | $ 3.32 |
Business combinations and dis_7
Business combinations and disposals - Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in goodwill | ||
Balance at the beginning of the period | $ 584,469,000 | $ 399,882,000 |
Goodwill acquired through acquisition | 7,652,000 | |
Other | 372,000 | |
Disposal of Q2 Administrators, LLC | (899,000) | |
Foreign currency translation | 1,907,000 | (1,772,000) |
Balance at the end of the period | 593,129,000 | 584,469,000 |
Goodwill impairment loss | 0 | |
General Dynamics Information Technology's Citizen Engagement Centers | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | 184,640,000 | |
Balance at the end of the period | 184,640,000 | |
GT Hiring Solutions | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | 1,347,000 | |
U.S. Services | ||
Changes in goodwill | ||
Balance at the beginning of the period | 164,472,000 | 139,588,000 |
Goodwill acquired through acquisition | 0 | |
Other | 0 | |
Disposal of Q2 Administrators, LLC | 0 | |
Foreign currency translation | 0 | 0 |
Balance at the end of the period | 164,472,000 | 164,472,000 |
U.S. Services | General Dynamics Information Technology's Citizen Engagement Centers | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | 24,884,000 | |
U.S. Services | GT Hiring Solutions | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | 0 | |
U.S. Federal Services | ||
Changes in goodwill | ||
Balance at the beginning of the period | 382,618,000 | 228,148,000 |
Goodwill acquired through acquisition | 0 | |
Other | 0 | |
Disposal of Q2 Administrators, LLC | (899,000) | |
Foreign currency translation | 0 | 0 |
Balance at the end of the period | 381,719,000 | 382,618,000 |
U.S. Federal Services | General Dynamics Information Technology's Citizen Engagement Centers | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | 154,470,000 | |
U.S. Federal Services | GT Hiring Solutions | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | 0 | |
Outside the U.S. | ||
Changes in goodwill | ||
Balance at the beginning of the period | 37,379,000 | 32,146,000 |
Goodwill acquired through acquisition | 7,652,000 | |
Other | 372,000 | |
Disposal of Q2 Administrators, LLC | 0 | |
Foreign currency translation | 1,907,000 | (1,772,000) |
Balance at the end of the period | $ 46,938,000 | 37,379,000 |
Outside the U.S. | General Dynamics Information Technology's Citizen Engagement Centers | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | 5,286,000 | |
Outside the U.S. | GT Hiring Solutions | ||
Changes in goodwill | ||
Goodwill acquired through acquisition | $ 1,347,000 |
Business combinations and dis_8
Business combinations and disposals - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Components of intangible assets | ||
Cost | $ 245,397 | $ 260,551 |
Accumulated Amortization | 99,504 | 81,301 |
Intangible Assets, net | 145,893 | 179,250 |
Customer contracts and relationships | ||
Components of intangible assets | ||
Cost | 235,287 | 250,455 |
Accumulated Amortization | 90,302 | 72,430 |
Intangible Assets, net | 144,985 | 178,025 |
Technology-based intangible assets | ||
Components of intangible assets | ||
Cost | 5,631 | 5,613 |
Accumulated Amortization | 4,723 | 4,405 |
Intangible Assets, net | 908 | 1,208 |
Trademarks and trade names | ||
Components of intangible assets | ||
Cost | 4,479 | 4,483 |
Accumulated Amortization | 4,479 | 4,466 |
Intangible Assets, net | $ 0 | $ 17 |
Weighted Average | ||
Components of intangible assets | ||
Weighted average remaining life of assets not fully amortized | 9 years | |
Weighted Average | Customer contracts and relationships | ||
Components of intangible assets | ||
Weighted average remaining life of assets not fully amortized | 9 years | |
Weighted Average | Technology-based intangible assets | ||
Components of intangible assets | ||
Weighted average remaining life of assets not fully amortized | 3 years 1 month 6 days |
Business combinations and dis_9
Business combinations and disposals - Schedule of Future Estimated Amortization Expense (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Estimated future amortization expense | |
2021 | $ 18,969 |
2022 | 16,596 |
2023 | 16,498 |
2024 | 16,374 |
2025 | $ 16,152 |
Income taxes - Schedule of Comp
Income taxes - Schedule of Components of Income From Continuing Operations before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income before income taxes: | |||
United States | $ 304,240 | $ 280,092 | $ 248,360 |
Foreign | (17,178) | 37,228 | 50,849 |
Income before income taxes | $ 287,062 | $ 317,320 | $ 299,209 |
Income taxes - Provision for In
Income taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Current provision/(benefit): | |||
Federal | $ 65,735 | $ 37,123 | $ 42,318 |
State and local | 28,117 | 14,480 | 13,459 |
Foreign | (2,154) | 12,561 | 15,895 |
Total current provision | 91,698 | 64,164 | 71,672 |
Deferred tax expense/(benefit): | |||
Federal | (12,984) | 12,627 | 4,106 |
State and local | (4,246) | 3,013 | 2,902 |
Foreign | (1,915) | (2,979) | (287) |
Total deferred tax expense/(benefit) | (19,145) | 12,661 | 6,721 |
Provision for income taxes | $ 72,553 | $ 76,825 | $ 78,393 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net operating loss carryforwards | |||||
Transition tax expense, incomplete accounting | $ (500) | $ 9,400 | |||
Provisional income tax benefit | 10,500 | ||||
Cash and cash equivalents | $ 71,737 | $ 105,565 | 349,245 | $ 166,252 | |
Income taxes paid | 89,100 | 69,200 | 65,300 | ||
Unrecognized tax benefits that, if recognized, would affect the annual effective income tax rate | 1,800 | 3,600 | |||
Interest and penalties included in net liability balance | 100 | 800 | |||
Maximum net interest expense deduction | 92,000 | ||||
Interest expense | 2,059 | 2,957 | 1,000 | ||
Maximum | |||||
Net operating loss carryforwards | |||||
Interest expense recognized related to unrecognized tax benefits (less than) | 100 | $ 100 | $ 100 | ||
Foreign Tax Authority | |||||
Net operating loss carryforwards | |||||
Cash and cash equivalents | $ 44,400 |
Income taxes - Reconciliation o
Income taxes - Reconciliation of Tax Provision Using the Federal Statutory Income Tax Rate to Reported Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of actual provision for income taxes and provision for income taxes resulting from the use of federal statutory income tax | |||
Federal income tax provision at statutory rate of 21%, 21% and 24.5%, respectively | $ 60,284 | $ 66,637 | $ 73,396 |
State income taxes, net of federal benefit | 17,480 | 14,825 | 12,348 |
Foreign taxation | (463) | 1,210 | (1,531) |
Permanent items | 2,200 | 2,682 | 1,176 |
Tax credits | (4,149) | (3,730) | (2,438) |
Toll tax | 0 | (481) | 9,425 |
Deferred tax liability - tax rate change | 0 | 0 | (10,514) |
Vesting of equity compensation | (2,038) | (4,783) | (2,849) |
Other | (761) | 465 | (620) |
Provision for income taxes | $ 72,553 | $ 76,825 | $ 78,393 |
Statutory income tax rate (as a percent) | 21.00% | 21.00% | 24.50% |
Income taxes - Schedule of Defe
Income taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Components of deferred tax assets and liabilities | ||
Costs deductible in future periods | $ 24,127 | $ 19,133 |
Deferred revenue | 8,054 | 6,098 |
Stock compensation | 4,140 | 3,617 |
Net operating loss carryforwards | 252 | 798 |
Amortization of goodwill and intangible assets | (27,555) | (26,338) |
Capitalized software | (10,076) | (8,635) |
Accounts receivable - unbilled | (11,565) | (35,566) |
Property and equipment | (2,365) | |
Property and equipment | 515 | |
Prepaid expenses | (4,245) | (3,645) |
Other | (3,589) | (2,351) |
Net deferred tax liabilities | $ (22,822) | $ (46,374) |
Income taxes - Schedule of Net
Income taxes - Schedule of Net Deferred Tax Position (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Income Tax Disclosure [Abstract] | ||
Balance of tax jurisdictions with net deferred tax assets | $ 1,915 | $ 186 |
Balance of tax jurisdictions with net deferred tax liabilities | (24,737) | (46,560) |
Net deferred tax liabilities | $ (22,822) | $ (46,374) |
Income taxes - Summary of Incom
Income taxes - Summary of Income Tax Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||
Balance at beginning of year | $ 3,001 | $ 721 | $ 633 |
Increases for tax positions taken in current year | 770 | 2,280 | 88 |
Decreases for tax positions taken in current year | (1,973) | 0 | 0 |
Balance at end of year | $ 1,798 | $ 3,001 | $ 721 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2020AUD ($) | |
Debt Instrument [Line Items] | |||||
Current portion of long-term debt and other borrowings | $ 10,878,000 | $ 10,878,000 | $ 9,658,000 | ||
Outstanding borrowings | 5,000,000 | 5,000,000 | 3,200,000 | ||
Interest paid | $ 1,600,000 | $ 2,500,000 | $ 600,000 | ||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 2.50 | ||||
Debt instrument, covenant, actual consolidated leverage ratio (less than) | 1 | ||||
Credit Agreement | Revolving Credit Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 400,000,000 | $ 400,000,000 | |||
Borrowings | 0 | 0 | |||
Credit Agreement | Swingline | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 5,000,000 | 5,000,000 | |||
Credit Agreement | Letters of credit | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 50,000,000 | $ 50,000,000 | |||
Credit Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | ||||
Credit Agreement | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.00% | ||||
Credit Agreement | Minimum | Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.00% | ||||
Credit Agreement | Minimum | Index Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.00% | ||||
Credit Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.275% | ||||
Credit Agreement | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.75% | ||||
Credit Agreement | Maximum | Eurocurrency Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.75% | ||||
Credit Agreement | Maximum | Index Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.75% | ||||
Australian Term Facility Agreement | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.80% | ||||
Debt instrument, face amount | $ 65,000,000 | ||||
Outstanding borrowings | $ 21,400,000 | $ 21,400,000 | |||
Current portion of long-term debt and other borrowings | $ 3,600,000 | 3,600,000 | |||
Minimum liquidity | $ 25,000,000 | ||||
Australian Term Facility Agreement | Australian Bank Bill Swap Bid Rate | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 2.00% | ||||
Canada And United Kingdom Facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Borrowings | $ 7,000,000 | $ 7,000,000 |
Balance sheet components - Sche
Balance sheet components - Schedule of cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 71,737 | $ 105,565 | $ 349,245 | $ 166,252 |
Restricted cash (recorded within "prepaid expenses and other current assets") | 16,824 | 10,927 | 7,314 | 13,475 |
Cash, cash equivalents and restricted cash | $ 88,561 | $ 116,492 | $ 356,559 | $ 179,727 |
Balance sheet components - Sc_2
Balance sheet components - Schedule of Property and Equipment, at cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property and equipment, at cost | |||
Property and equipment, gross | $ 336,704 | $ 329,636 | |
Less: Accumulated depreciation and amortization | (269,983) | (230,047) | |
Total property and equipment, net | 66,721 | 99,589 | |
Fixed asset depreciation expense | 54,900 | 45,200 | $ 40,700 |
Land | |||
Property and equipment, at cost | |||
Property and equipment, gross | 1,738 | 1,738 | |
Building and improvements | |||
Property and equipment, at cost | |||
Property and equipment, gross | 11,846 | 12,044 | |
Office furniture and equipment | |||
Property and equipment, at cost | |||
Property and equipment, gross | 239,057 | 246,671 | |
Leasehold improvements | |||
Property and equipment, at cost | |||
Property and equipment, gross | $ 84,063 | $ 69,183 |
Balance sheet components - Sc_3
Balance sheet components - Schedule of Components of Capitalized Computer Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |||
Capitalized software | $ 120,677 | $ 103,643 | |
Less: Accumulated amortization | (82,644) | (71,274) | |
Total capitalized software, net | 38,033 | 32,369 | |
Capitalized software amortization expense | 9,600 | $ 7,200 | $ 11,200 |
Capitalized software written off | $ 600 |
Balance sheet components - Sc_4
Balance sheet components - Schedule of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Financial information for each of the Company's business segments | ||
Deferred contract costs | $ 42,421 | $ 43,140 |
Less: Accumulated amortization | (21,530) | (24,219) |
Total Deferred contract costs, net | 20,891 | 18,921 |
Amortization of deferred contract costs | 6,800 | $ 9,900 |
U.S. Services | ||
Financial information for each of the Company's business segments | ||
Impairment loss on contract costs | $ 600 |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Performance bond commitments | $ 36.5 | |
Percentage of employees covered by collective bargaining agreements | 6.00% | |
Loss contingency, maximum potential loss | $ 31 | |
Loss contingency, disallowed amount | $ 19 | $ 12 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions | 2 Months Ended | 12 Months Ended | |||
Nov. 19, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2020 | |
Stock-based compensation | |||||
Shares available for grants (in shares) | 0.5 | ||||
Total income tax benefit recognized | $ 8,000,000 | $ 9,900,000 | $ 8,700,000 | ||
Liability related to forfeitures for tax payments | $ 9,818,000 | $ 10,614,000 | $ 8,733,000 | ||
Stock repurchase programs, authorized amount | $ 200,000,000 | ||||
Common shares repurchased (in shares) | 2.8 | 0.7 | 1.1 | ||
Common shares repurchased, cost | $ 166,959,000 | $ 46,797,000 | $ 67,572,000 | ||
Amount remaining available for future stock repurchases | $ 150,000,000 | ||||
RSUs awarded in 2009 and after | Share-based Payment Arrangement, Tranche One | |||||
Stock-based compensation | |||||
Award vesting period (in years) | 1 year | ||||
RSUs awarded in 2009 and after | Share-based Payment Arrangement, Tranche Two | |||||
Stock-based compensation | |||||
Award vesting period (in years) | 4 years | ||||
RSUs awarded in 2009 and after | Share-based Payment Arrangement, Tranche Three | |||||
Stock-based compensation | |||||
Award vesting period (in years) | 5 years | ||||
Restricted stock units (RSU) | |||||
Stock-based compensation | |||||
Share-based compensation expense | $ 23,700,000 | $ 20,800,000 | $ 20,200,000 | ||
Deferred vested award (in shares) | 0.6 | ||||
Granted (in dollars per share) | $ 74.26 | $ 66.96 | $ 64.33 | ||
Total fair value | $ 23,600,000 | $ 27,400,000 | $ 30,300,000 | ||
Unrecognized compensation cost | $ 41,700,000 | ||||
Unrecognized compensation costs, period for recognition | 4 years | ||||
Weighted average life (in years) | 1 year 6 months | ||||
Stock options | |||||
Stock-based compensation | |||||
Liability related to forfeitures for tax payments | $ 9,800,000 | $ 10,600,000 | $ 8,700,000 | ||
Subsequent events | |||||
Stock-based compensation | |||||
Common shares repurchased (in shares) | 0.1 | ||||
Common shares repurchased, cost | $ 3,400,000 |
Equity - Summary of the Company
Equity - Summary of the Company's RSU Activity (Details) - Restricted stock units (RSU) - $ / shares | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summary of RSU activity | |||
Non-vested shares outstanding at the beginning of the period (in shares) | 646,129 | ||
Granted (in shares) | 382,795 | ||
Vested (in shares) | (371,971) | ||
Forfeited (in shares) | (14,542) | ||
Non-vested shares outstanding at the end of the period (in shares) | 642,411 | 646,129 | |
Weighted-Average Grant-Date Fair Value | |||
Non-vested shares outstanding at the beginning of the period (in dollars per share) | $ 62.60 | ||
Granted (in dollars per share) | 74.26 | $ 66.96 | $ 64.33 |
Vested (in dollars per share) | 63.91 | ||
Forfeited (in dollars per share) | 65.30 | ||
Non-vested shares outstanding at the end of the period (in dollars per share) | $ 68.73 | $ 62.60 |
Employee benefit plans and de_2
Employee benefit plans and deferred compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of liabilities that can be met plan assets | 91.00% | ||
Investments in mutual funds within the rabbi trust | $ 23.2 | ||
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution to defined contribution plans | 13.2 | $ 12.3 | $ 7.4 |
Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution to defined contribution plans | $ 18.6 | $ 18.6 | $ 19.5 |
Quarterly information (unaudi_3
Quarterly information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | $ 923,836 | $ 901,337 | $ 818,135 | $ 818,229 | $ 754,966 | $ 730,710 | $ 736,520 | $ 664,619 | $ 3,461,537 | $ 2,886,815 | $ 2,392,236 |
Gross profit | 196,851 | 185,603 | 153,098 | 175,450 | 168,250 | 174,247 | 169,422 | 159,265 | 711,002 | 671,184 | 594,385 |
Operating income | 84,523 | 87,309 | 37,311 | 79,135 | 77,576 | 83,594 | 81,801 | 74,136 | 288,278 | 317,107 | 295,483 |
Amortization of intangible assets | (35,634) | (33,054) | (10,308) | ||||||||
Gain on sale of a business | 1,718 | 0 | 0 | ||||||||
Other | (387,090) | (321,023) | (285,241) | ||||||||
Net income | 63,661 | 64,464 | 27,650 | 58,734 | 60,041 | 62,965 | 61,766 | 55,723 | 214,509 | 240,495 | 220,816 |
Net income attributable to Maximus | $ 63,661 | $ 64,464 | $ 27,650 | $ 58,734 | $ 60,089 | $ 62,898 | $ 61,924 | $ 55,913 | $ 214,509 | $ 240,824 | $ 220,751 |
Basic earnings per share attributable to Maximus (in dollars per share) | $ 1.03 | $ 1.04 | $ 0.43 | $ 0.91 | $ 0.93 | $ 0.98 | $ 0.96 | $ 0.86 | $ 3.40 | $ 3.73 | $ 3.37 |
Diluted earnings per share attributable to Maximus (in dollars per share) | $ 1.02 | $ 1.04 | $ 0.43 | $ 0.91 | $ 0.93 | $ 0.97 | $ 0.96 | $ 0.86 | $ 3.39 | $ 3.72 | $ 3.35 |
Segment Reconciling Items | |||||||||||
Amortization of intangible assets | $ (8,900) | $ (8,712) | $ (8,934) | $ (9,088) | $ (9,028) | $ (9,049) | $ (9,519) | $ (5,458) | $ (35,634) | $ (33,054) | $ (10,308) |
Acquisition-related expenses | (459) | (150) | (3,377) | (635) | 0 | 0 | 0 | (2,691) | (4,621) | (2,691) | (947) |
Gain on sale of a business | 12 | 1,706 | 0 | 0 | 1,718 | 0 | 0 | ||||
Other | (4,358) | (2,676) | (2,844) | ||||||||
Other | |||||||||||
Other | 256 | 16 | (107) | 98 | (475) | (503) | 394 | 599 | |||
U.S. Services | |||||||||||
Revenue | 1,329,274 | 1,176,488 | |||||||||
U.S. Services | Operating segments | |||||||||||
Revenue | 371,345 | 336,950 | 308,698 | 312,281 | 300,406 | 291,132 | 290,737 | 294,213 | 1,329,274 | 1,176,488 | 1,213,911 |
Gross profit | 92,199 | 93,029 | 85,454 | 89,590 | 83,154 | 86,664 | 86,260 | 88,031 | 360,272 | 344,109 | 359,624 |
Operating income | 62,343 | 61,033 | 46,215 | 58,192 | 53,832 | 54,250 | 56,860 | 55,892 | 227,783 | 220,834 | 218,634 |
Other | (132,489) | (123,275) | (140,990) | ||||||||
U.S. Federal Services | |||||||||||
Revenue | 1,633,337 | 1,111,197 | |||||||||
U.S. Federal Services | Operating segments | |||||||||||
Revenue | 423,232 | 450,143 | 393,391 | 366,571 | 312,179 | 292,295 | 289,736 | 216,987 | 1,633,337 | 1,111,197 | 478,911 |
Gross profit | 86,423 | 84,723 | 76,958 | 70,821 | 66,586 | 66,803 | 60,696 | 47,985 | 318,925 | 242,070 | 126,698 |
Operating income | 31,855 | 39,233 | 30,232 | 31,582 | 31,090 | 33,907 | 29,592 | 21,353 | 132,902 | 115,942 | 57,386 |
Other | (186,023) | (126,128) | (69,312) | ||||||||
Outside the U.S. | |||||||||||
Revenue | 498,926 | 599,130 | |||||||||
Outside the U.S. | Operating segments | |||||||||||
Revenue | 129,259 | 114,244 | 116,046 | 139,377 | 142,381 | 147,283 | 156,047 | 153,419 | 498,926 | 599,130 | 699,414 |
Gross profit | 18,229 | 7,851 | (9,314) | 15,039 | 18,510 | 20,780 | 22,466 | 23,249 | 31,805 | 85,005 | 108,063 |
Operating income | $ (584) | $ (5,817) | $ (26,718) | $ (1,014) | $ 2,157 | $ 4,989 | $ 4,474 | $ 4,441 | (34,133) | 16,061 | 35,968 |
Other | $ (65,938) | $ (68,944) | $ (72,095) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent events $ / shares in Units, $ in Millions | Oct. 02, 2020USD ($)$ / shares |
Subsequent events | |
Cash dividend declared (in dollars per share) | $ / shares | $ 0.28 |
Dividend payable | $ | $ 17.2 |