Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Nov. 06, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 2023 | ||
Current Fiscal Year End Date | --09-30 | ||
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 | 1600 Tysons Boulevard | ||
Entity Address, City or Town | McLean | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22102 | ||
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 Reporting Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,737,958,471 | ||
Entity Common Stock, Shares Outstanding | 60,997,874 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive proxy statement relating to its 2024 annual meeting of shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The Registrant’s definitive proxy statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | ||
Entity Central Index Key | 0001032220 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Tysons, Virginia |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 4,904,728 | $ 4,631,018 | $ 4,254,485 |
Cost of revenue | 3,876,120 | 3,691,208 | 3,307,510 |
Gross profit | 1,028,608 | 939,810 | 946,975 |
Selling, general, and administrative expenses | 639,223 | 534,493 | 494,088 |
Amortization of intangible assets | 94,591 | 90,465 | 44,357 |
Gain on sale of land and building | 0 | 11,046 | 0 |
Operating income | 294,794 | 325,898 | 408,530 |
Interest expense | 84,138 | 45,965 | 14,744 |
Other expense, net | 363 | 2,835 | 10,105 |
Income before income taxes | 210,293 | 277,098 | 383,681 |
Provision for income taxes | 48,501 | 73,270 | 92,481 |
Net income | $ 161,792 | $ 203,828 | $ 291,200 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.65 | $ 3.30 | $ 4.69 |
Diluted (in dollars per share) | $ 2.63 | $ 3.29 | $ 4.67 |
Weighted average shares outstanding: | |||
Basic (in shares) | 61,125 | 61,774 | 62,072 |
Diluted (in shares) | 61,450 | 61,969 | 62,365 |
Dividends declared per share (in dollars per share) | $ 1.12 | $ 1.12 | $ 1.12 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 161,792 | $ 203,828 | $ 291,200 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | 6,625 | (17,504) | 3,033 |
Net gains/(losses) on cash flow hedge, net of tax effect of $(103), $8,368, and $(107), respectively | (279) | 23,451 | (303) |
Other comprehensive income | 6,346 | 5,947 | 2,730 |
Comprehensive income | $ 168,138 | $ 209,775 | $ 293,930 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net gains/(losses) on cash flow hedge, tax | $ (103) | $ 8,368 | $ (107) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Assets: | ||
Cash and cash equivalents | $ 65,405 | $ 40,658 |
Accounts receivable, net | 826,873 | 807,110 |
Income taxes receivable | 16,556 | 2,158 |
Prepaid expenses and other current assets | 146,632 | 182,387 |
Total current assets | 1,055,466 | 1,032,313 |
Property and equipment, net | 38,831 | 52,258 |
Capitalized software, net | 107,811 | 58,740 |
Operating lease right-of-use assets | 163,929 | 132,885 |
Goodwill | 1,779,215 | 1,779,415 |
Intangible assets, net | 703,648 | 804,904 |
Deferred contract costs, net | 45,372 | 47,732 |
Deferred compensation plan assets | 42,919 | 37,050 |
Deferred income taxes | 2,459 | 4,970 |
Other assets | 46,147 | 42,447 |
Total assets | 3,985,797 | 3,992,714 |
Liabilities: | ||
Accounts payable and accrued liabilities | 282,081 | 264,553 |
Accrued compensation and benefits | 194,251 | 178,199 |
Deferred revenue, current portion | 60,477 | 87,146 |
Income taxes payable | 451 | 718 |
Long-term debt, current portion | 86,844 | 63,458 |
Operating lease liabilities, current portion | 49,852 | 63,999 |
Other current liabilities | 49,058 | 116,374 |
Total current liabilities | 723,014 | 774,447 |
Deferred revenue, non-current portion | 38,849 | 21,414 |
Deferred income taxes | 203,898 | 206,099 |
Long-term debt, non-current portion | 1,163,149 | 1,292,483 |
Deferred compensation plan liabilities, non-current portion | 46,432 | 40,210 |
Operating lease liabilities, non-current portion | 129,367 | 86,175 |
Other liabilities | 13,253 | 22,515 |
Total liabilities | 2,317,962 | 2,443,343 |
Commitments and contingencies (Note 15) | ||
Shareholders' equity: | ||
Common stock, no par value; 100,000 shares authorized; 60,998 and 60,774 shares issued and outstanding as of September 30, 2023 and 2022, respectively | 577,898 | 557,978 |
Accumulated other comprehensive loss | (27,615) | (33,961) |
Retained earnings | 1,117,552 | 1,025,354 |
Total shareholders' equity | 1,667,835 | 1,549,371 |
Total liabilities and shareholders' equity | $ 3,985,797 | $ 3,992,714 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 60,998,000 | 60,774,000 |
Common stock, shares outstanding (in shares) | 60,998,000 | 60,774,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 161,792 | $ 203,828 | $ 291,200 |
Adjustments to reconcile net income to cash flows from operations: | |||
Depreciation and amortization of property, equipment and capitalized software | 54,725 | 42,330 | 46,361 |
Amortization of intangible assets | 94,591 | 90,465 | 44,357 |
Amortization of debt issuance costs and debt discount | 2,837 | 3,012 | 9,374 |
Gain on sale of land and building | 0 | (11,046) | 0 |
Deferred income taxes | 1,552 | 10,204 | (6,577) |
Stock compensation expense | 29,522 | 30,476 | 28,554 |
Loss on sale of businesses | 883 | 0 | 0 |
Change in assets and liabilities, net of effects of business combinations and disposals: | |||
Accounts receivable | (23,401) | 14,132 | 38,578 |
Prepaid expenses and other current assets | 859 | (6,745) | (16,726) |
Deferred contract costs | 2,688 | (12,056) | (15,426) |
Accounts payable and accrued liabilities | 17,729 | (32,722) | 26,904 |
Accrued compensation and benefits | 12,650 | 3,288 | 18,112 |
Deferred revenue | (12,123) | (19,342) | 53,652 |
Income taxes | (16,958) | (13,510) | (2,733) |
Operating lease right-of-use assets and liabilities | (2,035) | (1,112) | 5,314 |
Other assets and liabilities | (10,971) | (11,363) | (3,622) |
Net cash provided by operating activities | 314,340 | 289,839 | 517,322 |
Cash flows from investing activities: | |||
Purchases of property and equipment and capitalized software | (90,695) | (56,145) | (36,565) |
Acquisitions of businesses, net of cash acquired | 0 | (14,295) | (1,798,915) |
Proceeds from the sale of businesses | 9,732 | 0 | 0 |
Proceeds from the sale of land and building | 0 | 16,431 | 0 |
Net cash used in investing activities | (80,963) | (54,009) | (1,835,480) |
Cash flows from financing activities: | |||
Cash dividends paid to Maximus shareholders | (68,073) | (68,716) | (68,838) |
Purchases of Maximus common stock | 0 | (96,119) | (3,363) |
Tax withholding related to RSU vesting | (8,475) | (9,673) | (9,818) |
Payments for contingent consideration | (9,431) | (1,369) | 0 |
Payments for debt financing costs | 0 | 0 | (23,213) |
Proceeds from borrowings | 844,299 | 615,000 | 2,318,129 |
Principal payments for debt | (952,974) | (770,658) | (824,483) |
Cash-collateralized escrow liabilities | (56,144) | 83,264 | 0 |
Other | 0 | 0 | (2,721) |
Net cash (used in)/provided by financing activities | (250,798) | (248,271) | 1,385,693 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,717 | (7,334) | 474 |
Net change in cash, cash equivalents, and restricted cash | (14,704) | (19,775) | 68,009 |
Cash, cash equivalents and restricted cash, beginning of period | 136,795 | 156,570 | 88,561 |
Cash, cash equivalents and restricted cash, end of period | $ 122,091 | $ 136,795 | $ 156,570 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Sep. 30, 2020 | 61,504,000 | |||
Beginning balance at Sep. 30, 2020 | $ 1,241,819 | $ 513,959 | $ (42,638) | $ 770,498 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 291,200 | 291,200 | ||
Foreign currency translation | 3,033 | 3,033 | ||
Cash flow hedge, net of tax | (303) | (303) | ||
Cash dividends | (68,838) | (68,838) | ||
Dividends on RSUs | $ 0 | $ 1,671 | (1,671) | |
Purchases of Maximus common stock (in shares) | (100,000) | (52,000) | ||
Purchases of Maximus common stock | $ (3,363) | (3,363) | ||
Stock compensation expense | 28,554 | $ 28,554 | ||
Tax withholding related to RSU vesting | (11,773) | $ (11,773) | ||
RSUs vested (in shares) | 502,000 | |||
RSUs vested | 0 | |||
Balance (in shares) at Sep. 30, 2021 | 61,954,000 | |||
Ending balance at Sep. 30, 2021 | 1,480,329 | $ 532,411 | (39,908) | 987,826 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 203,828 | 203,828 | ||
Foreign currency translation | (17,504) | (17,504) | ||
Cash flow hedge, net of tax | 23,451 | 23,451 | ||
Cash dividends | (68,716) | (68,716) | ||
Dividends on RSUs | $ 0 | $ 1,465 | (1,465) | |
Purchases of Maximus common stock (in shares) | (1,400,000) | (1,407,000) | ||
Purchases of Maximus common stock | $ (96,119) | (96,119) | ||
Stock compensation expense | 30,476 | $ 30,476 | ||
Tax withholding related to RSU vesting | (6,374) | $ (6,374) | ||
RSUs vested (in shares) | 227,000 | |||
RSUs vested | $ 0 | |||
Balance (in shares) at Sep. 30, 2022 | 60,774,000 | 60,774,000 | ||
Ending balance at Sep. 30, 2022 | $ 1,549,371 | $ 557,978 | (33,961) | 1,025,354 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 161,792 | 161,792 | ||
Foreign currency translation | 6,625 | 6,625 | ||
Cash flow hedge, net of tax | (279) | (279) | ||
Cash dividends | (68,073) | (68,073) | ||
Dividends on RSUs | 0 | 1,521 | (1,521) | |
Purchases of Maximus common stock | 0 | |||
Stock compensation expense | 29,522 | 29,522 | ||
Tax withholding related to RSU vesting | (11,123) | $ (11,123) | ||
RSUs vested (in shares) | 224,000 | |||
RSUs vested | $ 0 | |||
Balance (in shares) at Sep. 30, 2023 | 60,998,000 | 60,998,000 | ||
Ending balance at Sep. 30, 2023 | $ 1,667,835 | $ 577,898 | $ (27,615) | $ 1,117,552 |
Organization
Organization | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Maximus, a Virginia corporation established in 1975, is a leading provider of government services worldwide. Under our mission of Moving People Forward, we help millions of people access the vital government services they need. With over 45 years of experience working with local, state, federal, and international government clients, we proudly design, develop, and deliver innovative and impactful programs that change lives. We are driven to strengthen communities and improve the lives of those we serve. We are a proud partner to government agencies in the United States and worldwide. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements, including the notes, include the accounts of the Company and its wholly-owned subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation. Our fiscal year ends on September 30 and unless otherwise noted, references to fiscal year or fiscal are for fiscal years ended September 30. The accompanying consolidated financial statements present our financial position as of September 30, 2023, and 2022 and our results of operations for fiscal years 2023, 2022, and 2021. Use of Estimates The preparation of these financial statements, in conformity with U.S. 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 long-lived assets, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation. Our balance sheet includes a number of long-lived assets, including property and equipment, capitalized software, operating lease right-of-use assets, deferred contract costs, and intangible assets. These assets are depreciated or amortized over their estimated useful economic lives but are subject to impairment if events indicate that the carrying amounts may not be recoverable. As disclosed in "Note 4. Revenue Recognition," some of our performance-based contract revenue is recognized based upon future milestones defined in each contract. This is the case in many of our employment services contracts in the Outside the U.S. Segment, where we are paid as individuals attain employment milestones, which may take many months to achieve. We recognize revenue over the period of performance. Our estimates vary from contract to contract but may include the number of participants within a portfolio reaching employment milestones and the service delivery periods for participants reaching the employment milestone. As disclosed in "Note 6. Business Combinations and Divestitures", we acquired several businesses. For assets acquired and liabilities assumed, we are required to identify and recognize these balances at their fair value as of the date of acquisition. In May 2021, we acquired VES Group, Inc. As part of the acquisition, we allocated a valuation of $27 million to certain technology assets used by the business, which we elected to amortize over twelve years, which was our best estimate of asset life at that time. In fiscal year 2023, we have taken the opportunity to improve our technology portfolio, including the development of technology, that will eventually replace much of the acquired technology. Accordingly, we have revised the asset life on the existing technology, assuming the assets will cease being used by September 2026. This change in estimated useful life will result in additional annual amortization expense of $3.8 million per year. In fiscal year 2023, this change reduced our diluted earnings per share by approximately $0.04. We are required to evaluate our long-lived assets used in operations when events and circumstances indicate that the valuation of the assets exceeds their fair value. • Our capitalized software balance includes $23 million related to technology for new services within our U.S. Services Segment. During the fourth quarter of fiscal year 2023, we evaluated whether these assets were impaired by comparing the carrying value of the assets to our anticipated future cash flows. At this time, our probability-weighted undiscounted cash flows continue to show that we will recover the cost of our assets through our contract pipeline. It is possible that changes in our estimates of future cash flows or unbudgeted costs related to these capitalized software assets may change in the near term and result in the need to write these assets down to fair value. • During the first quarter of fiscal year 2024, we completed the sale of some of our international businesses. In the course of the sale process, we noted that the carrying value of the assets being disposed of would exceed the sale price. As a result, we recorded an impairment charge of $2.9 million at September 30, 2023. This charge was spread across various long-lived assets, including fixed assets and lease right-of-use assets. Cash and Cash Equivalents 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 are precluded from use for general business needs through contractual requirements. These requirements typically include serving as collateral bonds and letters of credit or where we hold funds on behalf of clients. We report our restricted cash balances within "Prepaid expenses and other current assets" on our balance sheet. Revenue Recognition We recognize revenue as, or when, we satisfy performance obligations under a contract. We account for a contract when the parties approve 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. 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 that 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 credit losses over the contractual payment terms of the receivable. We periodically reassess these amounts by analyzing reasonably available information as of the balance sheet date, including the length of time that the receivable has been outstanding, historical bad debts and aging trends, and other general and contract-specific factors. We present billed, billable, and unbilled receivables as one component on our consolidated balance sheets. Our deferred revenue is presented as a separate item on our consolidated balance sheet, broken out by current and long-term portion. Unbilled receivables and deferred revenue 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 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 - the value that 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. Credit Risk Credit risk has not historically been significant to our business due to the nature of our customers. 48% of our revenue is from the U.S. federal government, and much of our Outside the U.S. segment is from national governments. 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. 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. 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 additional quantitative analysis is required. If such an impairment is more-likely-than-not, or if we choose to bypass this qualitative assessment, a quantitative 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 is determined to be impaired. Our reporting units are consistent with our operating segments, U.S. Federal Services, U.S. 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, 2023, and concluded that the fair value of each of the reporting units was greater than the carrying amounts. Intangible Assets All of our intangible assets are acquired through business combinations. They are separately identified and recorded at fair value upon acquisition. We use judgment in identifying, valuing, and assigning a useful economic life to assets as they are acquired. The judgments required vary with the type of asset but may include projections of future results, estimated costs to recreate or replace assets, the cost of utilizing other, similar assets provided by a third party, and an appropriate cost of capital. Where appropriate, we utilize the services of a third-party specialist to assist us in these valuations. We amortize our intangible assets over their estimated useful lives on a straight-line basis. We believe this reflects the manner in which the value from our customer relationships, technology, and other assets is realized by the business. Property and Equipment Property and equipment are recorded at cost. Depreciation is recorded over the assets' respective useful economic lives using the straight-line method, which are not to exceed seven years. 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. Capitalized Software All of our 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 amortized using the straight-line method over the estimated useful life of the software, ranging from three Deferred Contract Costs Deferred contract costs consist of contractually recoverable costs to fulfill services 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 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 expense, net" on our consolidated statements of operations. Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Where claims are reasonably possible, we disclose a potential liability. Fair Value Measurements U.S. GAAP provides a framework for measuring fair value, establishes a fair value hierarchy of the valuation techniques used to measure the fair value, and requires certain disclosures relating to fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between marketplace participants. The three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, is as follows: • Level 1 - Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; • Level 2 - Inputs, other than the quoted market prices included in Level 1, which are observable for the asset or liability, either directly or indirectly; and • Level 3 - Unobservable inputs for the asset or liability, which is typically based on an entity's own assumptions when there is little, if any, related market data available. We evaluate assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made. 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 16. Employee Benefit Plans and Deferred Compensation" for further details. We use derivative instruments to manage interest rate exposure. All derivative instruments are recorded on the balance sheet at fair value. The valuation is calculated based on observable inputs (Level 2). See "Note 8. Debt and Derivatives" for further details. We record contingent consideration payments related to acquisitions that may be paid in the future. The related liabilities are recorded on our consolidated balance sheets at estimated fair value under the heading "Other liabilities" and updated on a quarterly basis as an acquisition-related expense or benefit. The valuation of this liability is derived from internal estimates of future performance and not from inputs that are observable (Level 3). See "Note 6. Business Combinations and Divestitures" for further details. Leases We enter into contractual arrangements primarily for the use of real estate facilities, information technology equipment, and certain other equipment. These arrangements contain a lease when we control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Where contracts include both lease and non-lease components, we do not separate the non-lease components in our accounting. The majority of our leases are operating leases. 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, country, and lease-specific factors. The weighted average incremental borrowing rate utilized as of September 30, 2023, was 5.5%. 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 that serve management and support functions are expensed through "selling, general, and administrative expenses." Stock Compensation Plan We grant both restricted stock units ("RSUs") and performance stock units ("PSUs") to eligible participants under our 2021 Omnibus Incentive Plan, which was approved by the Board of Directors and the Company's shareholders. The fair value of each RSU is equal to the market price of our common stock at the date of the grant, which is expensed ratably over the vesting period. The RSUs granted vest ratably over one We issue PSUs with targets based upon profit metrics. These PSUs vest in full at the end of a three-year period. The fair value of each award is based upon the market price of the common stock on the day of the grant, and expense is recorded based upon our estimate of how much of the award will vest over the three years of the award. We issue PSUs with a target based upon total shareholder return. These PSUs vest in full after three years. The fair value of each award is based upon an assessment performed at the grant date and is expensed over the life of the award regardless of whether the targets are reached. Certain executive awards include a retirement provision whereby such awards fully vest upon an employee's retirement. We recognize total compensation expense of the awards for eligible participants ratably over the shorter of the vesting period or the employees' retirement eligibility date. Derivative Instruments We use interest rate swap contracts to lock a portion of the variability of the interest payments on long-term debt. We have elected to designate these derivative instruments as cash flow hedges. The effective portion of changes in the fair value of the derivative is recorded to accumulated other comprehensive income and is reclassified to earnings, through "Interest expense", when the underlying forecasted transaction affects earnings. Cash flows from derivative instruments are included in net cash provided by operating activities in the consolidated statements of cash flows. We reassess the effectiveness of the hedges on a quarterly basis. |
Business Segments
Business Segments | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS We conduct our operations through three business segments: U.S. Federal Services, U.S. Services, and Outside the U.S. U.S. Federal Services Our U.S. Federal Services Segment delivers end-to-end solutions that help various U.S. federal government agencies better deliver on their mission, including program operations and management, clinical services, and technology solutions. This segment also includes appeals and assessments services, system and application development, Information Technology ("IT") modernization, and maintenance services. Certain state-based assessments and appeals work that is part of the segment's heritage continues to be managed within this segment. Under Technology Consulting Services ("TCS"), the segment executes on its digital strategy to deliver technology solutions that advance agency missions, including the challenge to modernize, provide better customer experience, and drive process efficiencies. The segment continues to expand its clinical solutions through VES, which manages the clinical evaluation process for U.S. veterans and service members on behalf of the VA. U.S. Services Our U.S. Services Segment provides a variety of BPS, such as program administration, assessments, and related consulting work for U.S. state and local government programs. These services support a variety of programs, including the ACA, Medicaid, the Children's Health Insurance Program ("CHIP"), Temporary Assistance to Needy Families ("TANF"), and child support programs. Over the last three years, many programs in this segment have been operating with depressed margins resulting from the pause in Medicaid redeterminations. The depressed margins have resulted from reduced operating leverage in the segment as costs cannot scale down at the same rate to meet lower demand due to requirements to fulfill other obligations on these contracts. With the resumption of redeterminations, we expect a full period of volumes in 2024 coming back into these programs, enabling our operating leverage to recover. Outside the U.S. Our Outside the U.S. Segment provides BPS for international governments, transforming the lives of people around the world. Helping people find employment, access vital support, and remain healthy, these services include health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker-related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service ("HAAS") and the recently awarded replacement contract to start in 2024, Functional Assessment Services (“FAS”), and Restart; Australia, including Workforce Australia and employment support and job seeker services worldwide. Table 3.1: Results of Operation by Business Segment For the Year Ended September 30, 2023 2022 2021 Amount % (1) Amount % (1) Amount % (1) (dollars in thousands) Revenue: U.S. Federal Services $ 2,403,606 $ 2,259,744 $ 1,893,284 U.S. Services 1,812,069 1,607,612 1,662,110 Outside the U.S. 689,053 763,662 699,091 Revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 Gross profit: U.S. Federal Services $ 557,886 23.2 % $ 519,440 23.0 % $ 432,551 22.8 % U.S. Services 377,541 20.8 % 343,004 21.3 % 408,050 24.6 % Outside the U.S. 93,181 13.5 % 77,366 10.1 % 106,374 15.2 % Gross profit $ 1,028,608 21.0 % $ 939,810 20.3 % $ 946,975 22.3 % Selling, general, and administrative expenses: U.S. Federal Services $ 308,197 12.8 % $ 284,509 12.6 % $ 243,485 12.9 % U.S. Services 194,991 10.8 % 160,902 10.0 % 153,609 9.2 % Outside the U.S. 102,311 14.8 % 92,536 12.1 % 86,248 12.3 % Divestiture related charges (2) 3,751 NM — NM — NM Other (4) 29,973 NM (3,454) NM 10,746 NM Selling, general, and administrative expenses $ 639,223 13.0 % $ 534,493 11.5 % $ 494,088 11.6 % Operating income/(loss): U.S. Federal Services $ 249,689 10.4 % $ 234,931 10.4 % $ 189,066 10.0 % U.S. Services 182,550 10.1 % 182,102 11.3 % 254,441 15.3 % Outside the U.S. (9,130) (1.3) % (15,170) (2.0) % 20,126 2.9 % Amortization of intangible assets (94,591) NM (90,465) NM (44,357) NM Divestiture related charges (2) (3,751) NM — NM — NM Gain on sale of land and building (3) — NM 11,046 NM — NM Other (4) (29,973) NM 3,454 NM (10,746) NM Operating income $ 294,794 6.0 % $ 325,898 7.0 % $ 408,530 9.6 % Depreciation and amortization: U.S. Federal Services $ 18,336 0.8 % $ 12,332 0.5 % $ 12,986 0.7 % U.S. Services 22,674 1.3 % 16,528 1.0 % 20,350 1.2 % Outside the U.S. 13,715 2.0 % 13,470 1.8 % 13,025 1.9 % Depreciation and amortization $ 54,725 1.1 % $ 42,330 0.9 % $ 46,361 1.1 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2) During fiscal year 2023, we sold a small commercial practice in the United Kingdom and our employment operations business in Sweden, both subsidiaries within our Outside the U.S. Segment, resulting in a loss of $0.9 million. In addition, we recorded impairment losses of $2.9 million on businesses sold subsequent to fiscal year end. Refer to "Note 6. Business Combinations and Divestitures" and "Note 17. Subsequent Events" for more details. (3) During fiscal year 2022, we sold the land and building that held our corporate headquarters, resulting in a gain on sale of $11.0 million. (4) Other includes credits and costs that are not allocated to a particular segment. For the fiscal year 2023, these charges include $29.3 million related to the costs of a previously disclosed cybersecurity incident. Other charges include direct costs of acquisitions. These costs are excluded from measuring each segment's operating performance. Table 3.2: Assets by Segment As of September 30, 2023 2022 (in thousands) U.S. Federal Services $ 2,716,367 $ 2,858,662 U.S. Services 780,737 736,970 Outside the U.S. 278,289 277,016 Corporate 210,404 120,066 Assets $ 3,985,797 $ 3,992,714 Our long-lived assets consist of property and equipment, capitalized software costs, operating lease right-of-use assets, and deferred compensation plan assets. Table 3.3: Long-Lived Assets by Geography As of September 30, 2023 2022 (in thousands) United States $ 313,830 $ 238,523 Outside the US 39,660 42,410 Total $ 353,490 $ 280,933 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2023 | |
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 customers that are substantially the same and which have the same pattern of service. We recognize revenue over the performance period as a customer receives the benefits of our services. Disaggregation of Revenue In addition to our segment reporting, we disaggregate our revenues by service, contract type, customer type, and geography. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results, which is further discussed in "Note 3. Business Segments." Table 4.1: Revenue by Service Type For the Year Ended September 30, 2023 % 2022 % 2021 % (dollars in thousands) Program Operations $ 2,607,263 53.2 % $ 2,596,801 56.1 % $ 2,755,820 64.8 % Clinical Services 1,486,040 30.3 % 1,176,081 25.4 % 699,424 16.4 % Employment & Other 520,981 10.6 % 551,755 11.9 % 463,695 10.9 % Technology Solutions 290,444 5.9 % 306,381 6.6 % 335,546 7.9 % Total revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 Table 4.2: Revenue by Contract Type For the Year Ended September 30, 2023 % 2022 % 2021 % (dollars in thousands) Performance-based $ 2,425,597 49.5 % $ 2,091,608 45.2 % $ 1,416,562 33.3 % Cost-plus 1,238,574 25.3 % 1,248,759 27.0 % 1,237,995 29.1 % Fixed price 717,167 14.6 % 627,402 13.5 % 553,645 13.0 % Time and materials 523,390 10.7 % 663,249 14.3 % 1,046,283 24.6 % Total revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 Table 4.3: Revenue by Customer Type For the Year Ended September 30, 2023 % 2022 % 2021 % (dollars in thousands) U. S. federal government agencies $ 2,344,863 47.8 % $ 2,189,303 47.3 % $ 1,805,131 42.4 % U.S. state government agencies 1,800,814 36.7 % 1,605,457 34.7 % 1,654,555 38.9 % International government agencies 663,044 13.5 % 722,192 15.6 % 663,180 15.6 % Other, including local municipalities and commercial customers 96,007 2.0 % 114,066 2.5 % 131,619 3.1 % Total revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 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, and such balances are considered collectible and are included within accounts receivable, net. Exceptions to this pattern will arise for various reasons, including those listed below. • Under cost-plus contracts, we are typically required to estimate a contract's share of our general and administrative expenses. This share is based upon estimates of total costs, which may vary over time. We typically invoice our customers at an agreed provisional billing rate which may differ from actual rates incurred. If our actual rates are higher than the provisional billing rates, an asset is recorded for this variance; if the provisional billing rates are higher than our actual rates, we record a liability. • Certain contracts include retainage balances, whereby revenue is earned, but some portion of cash payments are held back by the customer for a period of time, typically to allow the customer to confirm the objective criteria laid out by the contract have been met. This balance is classified as accounts receivable - unbilled until restrictions on billing are lifted. As of September 30, 2023 and 2022, $20.7 million and $13.1 million, respectively, of our unbilled receivables related to amounts pursuant to contractual retainage provisions. • 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 employment services contracts in the Outside the U.S. Segment, include payments for desired outcomes, such as job placement and job retention, and these outcome payments 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, 2023, we recognized revenue of $81.5 million included in our deferred revenue balances at September 30, 2022. During the year ended September 30, 2022, we recognized revenue of $103.2 million included in our deferred revenue balances at September 30, 2021. Contract estimates We are required to use estimates in recognizing revenue from some of our contracts. Some of our performance-based contract revenue is recognized based upon future milestones defined in each contract. This is the case in many of our employment services contracts in the Outside the U.S. Segment, where we are paid as individuals attain employment milestones, which may take many months to achieve. We recognize revenue over the period of performance. Our estimates vary from contract to contract but may include the number of participants within a portfolio reaching employment milestones and the service delivery periods for participants reaching the employment milestone. We estimate the total variable fees we will receive using the expected value method. We recognize the fees over the expected period of performance. At each reporting period, we update our estimates of the variable fees to represent the circumstances present at the end of the reporting period. 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. We do not have a history of significant constraints on these contracts. During the fiscal years ended September 30, 2023 and 2022, we recognized revenue from these performance-based fees of $120.6 million and $142.4 million, respectively. At September 30, 2023 and 2022, we recorded $53.9 million and $55.4 million, respectively, of these estimated outcome fees, which will be collected only when we reach anticipated targets. This balance is included on our consolidated balance sheets within the related contract accounts. Table 4.4: Effect of Changes in Contract Estimates For the Year Ended September 30, 2023 2022 (in thousands, except per share data) Benefit to/(reduction of) revenue recognized due to changes in contract estimates $ (13,346) $ (2,500) Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates $ (0.16) $ (0.03) Remaining performance obligations As of September 30, 2023, we had approximately $300 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 70% 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 that is allocated entirely to future performance obligations, including variable transaction fees or fees tied directly to costs incurred. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Table 5: Weighted Average Number of Shares - Earnings Per Share For the Year Ended September 30, 2023 2022 2021 (in thousands) Basic weighted average shares outstanding 61,125 61,774 62,072 Dilutive effect of unvested RSUs and PSUs 325 195 293 Denominator for diluted earnings per share 61,450 61,969 62,365 |
Business Combinations and Dives
Business Combinations and Divestitures | 12 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations and Divestitures | BUSINESS COMBINATIONS AND DIVESTITURES VES Group, Inc. (VES) On May 28, 2021, we acquired 100% of VES for a purchase price of $1.37 billion (the "VES Acquisition"). VES was integrated into our U.S. Federal Services Segment. The VES Acquisition supports our ongoing strategic priority of expansion into the U.S. Federal market and accelerates our clinical evolution to meet long-term demand for BPS with a clinical dimension. We have completed our valuation of all acquired assets and liabilities assumed. Table 6.1: VES Valuation Allocation of Assets and Liabilities (in thousands) Consideration paid: Cash consideration, net of cash acquired 1,370,631 Assets acquired: Accounts receivable - billed, billable and unbilled $ 44,078 Prepaid expenses and other current assets 7,955 Property and equipment, net 8,021 Operating lease right-of-use assets 18,898 Intangible assets 664,000 Other assets 7,166 Total identifiable assets acquired 750,118 Liabilities assumed: Accounts payable and accrued compensation 43,986 Operating lease liabilities 18,898 Income taxes payable, current 5,673 Deferred income taxes 171,023 Other long-term liabilities 12,270 Total identifiable liabilities assumed 251,850 Net identifiable assets acquired 498,268 Goodwill 872,363 Net assets acquired $ 1,370,631 Goodwill represents the value of the assembled workforce and the enhanced knowledge, capabilities, and qualifications held by the business. This goodwill balance is not deductible for tax purposes. Our evaluation of the intangible assets acquired with VES identified three assets. The assets were valued using methods that required a number of estimates and, accordingly, they are considered Level 3 measurements within the Accounting Standard Codification No. 820 (ASC 820) fair value methodology. • Customer relationships represent the value of the existing contractual relationships with the United States Federal Government. These were valued using the excess earnings method, which required us to utilize estimated future revenues and earnings from contracts and an appropriate rate of return. • VES maintains a provider network of third-party providers that assist in the performance of their clinical services. This network was valued using the cost method and income approach, which included both the cost of recreating such a network and the profits foregone during the time that would be required to recreate the network and an appropriate rate of return. • VES maintains proprietary technology that interacted with U.S. federal government systems, facilitated the transmission of examination data, and supported the performance of the contracts. We valued the technology using a relief-from-royalty method, which required us to estimate future revenues and an arm's length royalty rate that a third-party provider might use to supply this service and an appropriate rate of return. Table 6.2: VES Intangible Asset Values and Useful Lives Estimated Fair Value (in thousands) Customer contracts and relationships $ 580,000 Provider network 57,000 Technology-based intangible assets 27,000 Total intangible assets $ 664,000 These assets were assumed to have a 12 year useful economic life. During fiscal year 2023, we have taken the opportunity to improve our technology portfolio and have elected to develop assets to replace those acquired. Accordingly, we have revised the estimated useful economic life of the technology-based intangible assets, assuming they will be used until September 2026. This change in useful economic life will result in an additional annual expense of $3.8 million. At acquisition, we established a tax liability of $12.3 million for uncertain tax positions within VES, partially offset by another indemnification asset of $7.2 million. Since the acquisition, we have resolved a number of uncertain tax positions and, therefore, at September 30, 2023, we retain an estimated indemnification asset of $0.8 million, backed up by an escrow account. The Federal division of Attain, LLC ("Attain") On March 1, 2021, we acquired 100% of Attain for a cash purchase price of $419.1 million. This business was integrated into our U.S. Federal Services Segment and is expected to strengthen our position to further design, develop, and deliver more innovative, impactful solutions and drive automation of processes to improve citizen engagement and the delivery of critical federal programs, as well as expand our presence in the U.S. Federal market. We utilized borrowings on the credit facility we had in place at the time, as well as cash on our balance sheet to fund the acquisition. Table 6.3: Attain Valuation Allocation of Assets and Liabilities (in thousands) Consideration paid: Cash consideration paid, net of cash acquired $ 419,097 Assets acquired: Accounts receivable - billed, billable and unbilled 39,375 Prepaid expenses and other current assets 926 Operating lease right-of-use assets 24,960 Intangible assets 105,000 Other assets 74 Total identifiable assets acquired 170,335 Liabilities assumed: Accounts payable and other liabilities 28,863 Operating lease liabilities, less current portion 26,401 Total identifiable liabilities assumed 55,264 Net identifiable assets acquired 115,071 Goodwill 304,026 Net assets acquired $ 419,097 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 intangible assets acquired represent customer relationships. We estimated this balance using the excess earnings method (which is a Level 3 measurement within the ASC 820 fair value hierarchy) and used a number of estimates, including expected future revenue and earnings from the acquired business and an appropriate expected rate of return. We have assumed a useful economic life of 10 years, representing our expectation of the period over which we will receive the benefit. Aidvantage On October 6, 2021, we completed the acquisition of the student loan servicing business from Navient, rebranded as Aidvantage. This business is a part of our U.S. Federal Services Segment and supplements our existing portfolio of services to the U.S. Department of Education. The purchase price consideration is contingent upon future volumes, with a maximum payment of $65.0 million. The final payment is uncertain as there are a number of potential outcomes. We estimated the fair value of this liability, based upon a probability-weighted assessment of the potential outcomes, of $18.5 million. We update this liability each quarter as changes are made to our estimate of fair value. These changes are recorded through our statement of operations. If our obligation is less than anticipated, this will result in a benefit to our earnings. The obligation may be higher, either because the number of student loans we are servicing increases or if the contractual relationship we have acquired is extended beyond its current anticipated end date. In that instance, we would record an expense to earnings, which we would anticipate being offset by additional benefits from the contract. However, the timing of the adjustment to the obligation and the anticipated financial benefits would be unlikely to be consistent. Since the acquisition, we have made payments of $10.8 million and retain an estimated obligation of $7.5 million. We recorded a single intangible asset related to the customer contract and relationship of $16.7 million, which we are amortizing over 27 months. The goodwill balance, representing the difference between the identifiable assets acquired and the estimated obligation, represents the assembled workforce, as well as the knowledge base acquired. Other acquisitions Stirling Institute of Australia Pty Ltd ("Stirling") On June 1, 2022, we acquired 100% of the share capital of Stirling for an estimated purchase price of $4.1 million (A$5.7 million Australian Dollars). Stirling provides vocational training to Australians seeking to improve their knowledge and qualifications. We acquired this business to complement our existing employment services. The business was integrated into our Outside the U.S. Segment. We recorded goodwill and intangible assets of $2.3 million and $1.8 million, respectively, related to the acquisition. BZ Bodies Limited ("BZB") On January 31, 2022, we acquired 100% of the share capital of BZB for a purchase price of $2.5 million (£1.9 million British Pounds), which includes an estimate of contingent consideration payable upon future performance. BZB provides weight management services for adults, children, and vulnerable groups in the United Kingdom. We acquired this business to complement our services within the United Kingdom. The business was integrated into our Outside the U.S. Segment. We recorded goodwill and intangible assets of $1.4 million and $1.3 million, respectively, related to the acquisition. Connect Assist Holdings Limited ("Connect Assist") On September 14, 2021, we acquired 100% of the share capital of Connect Assist Holdings Limited ("Connect Assist") for a purchase price of $20.8 million (£15.5 million British Pounds). We acquired this business to improve our contact center services and qualifications within the United Kingdom. The business was integrated into our Outside the U.S. Segment. We recorded goodwill and intangible assets of $11.1 million and $7.7 million, respectively, related to the acquisition. Divestitures On March 6, 2023, we sold a small commercial practice in the United Kingdom, part of our Outside the U.S. Segment, resulting in a pre-tax loss of $0.6 million. The cash consideration will be received in installments. These installment payments are unconditional. On March 30, 2023, we sold our Swedish subsidiary, which is part of our Outside the U.S. Segment, for cash consideration of $0.4 million, resulting in a small loss. |
Goodwill And Intangiable Assets
Goodwill And Intangiable Assets | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangiable Assets | GOODWILL AND INTANGIBLE ASSETS Table 7.1: Changes in Goodwill by Segment U.S. Federal Services U.S. Services Outside the U.S. Total (in thousands) Balance as of September 30, 2021 $ 1,549,921 $ 164,472 $ 60,013 $ 1,774,406 Acquisitions 9,942 — 3,739 13,681 Foreign currency translation — — (8,672) (8,672) Balance as of September 30, 2022 1,559,863 164,472 55,080 1,779,415 Divestitures — — (3,172) (3,172) Foreign currency translation — — 2,972 2,972 Balance as of September 30, 2023 $ 1,559,863 $ 164,472 $ 54,880 $ 1,779,215 There were no impairment charges to our goodwill for the years ended September 30, 2023, 2022, and 2021. Table 7.2: Details of Intangible Assets, Net As of September 30, 2023 2022 Cost Accumulated Intangible Cost Accumulated Intangible (in thousands) Customer contracts and relationships $ 891,511 $ 251,868 $ 639,643 $ 905,285 $ 175,349 $ 729,936 VES Provider network 57,000 11,083 45,917 57,000 6,333 50,667 Technology-based intangible assets 31,572 13,484 18,088 31,984 7,683 24,301 Trademarks and trade names 4,471 4,471 — 4,466 4,466 — Total $ 984,554 $ 280,906 $ 703,648 $ 998,735 $ 193,831 $ 804,904 Table 7.3: Details of Weighted Average Remaining Lives As of September 30, 2023 Customer contracts and relationships 8.9 years VES Provider network 9.7 years Technology-based intangible assets 3.0 years Weighted Average Remaining Life 8.8 years Table 7.4: Details of Future Amortization Expense of Intangible Assets, Net As of September 30, 2023 (in thousands) Year ended September 30, 2024 $ 87,877 Year ended September 30, 2025 85,828 Year ended September 30, 2026 85,211 Year ended September 30, 2027 79,164 Year ended September 30, 2028 78,928 Thereafter 286,640 Total $ 703,648 |
Debt And Derivatives
Debt And Derivatives | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt And Derivatives | DEBT AND DERIVATIVES Table 8.1: Details of Debt As of September 30, 2023 2022 (in thousands) Term Loan A, due 2026 $ 909,375 $ 971,250 Term Loan B, due 2028 344,934 395,000 Subsidiary loan agreements 3,220 64 Funded Debt 1,257,529 1,366,314 Less: Unamortized debt-issuance costs and discounts (7,536) (10,373) Total debt 1,249,993 1,355,941 Less: Current portion of long-term debt (86,844) (63,458) Long-term debt $ 1,163,149 $ 1,292,483 Our principal debt agreement is with JPMorgan Chase Bank, N.A., as Administrative Agent ("Credit Agreement"), comprising of the following: • A term loan A facility ("Term Loan A"), initially comprising $1.1 billion, which matures on May 28, 2026; • A term loan B facility ("Term Loan B"), initially comprising $400 million, which matures May 28, 2028; • A $600 million revolving credit facility ("Revolver"), which matures May 28, 2026. Since December 2022, the interest rates applicable to loans under the Credit Agreement are floating rates based upon the Secured Overnight Financing Rate ("SOFR") plus a margin. Term Loan A and the Revolver margins range between 1% and 2%, based upon our leverage ratio. Term Loan B is set to SOFR plus 2.00%, subject to a SOFR floor of 0.50%. Prior to December 2022, our Credit Agreement utilized the London Interbank Offered Rate as the basis for floating rates. As of September 30, 2023, the annual effective interest rate, including the original issue discount and amortization of debt issuance costs, was 5.97%. The 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 0.30%. Commitment fees are recorded as interest expense on the consolidated statements of operations. The Credit Agreement is available for general corporate purposes, including the funding of working capital, capital expenditures, and possible future acquisitions. In addition to borrowings, it allows us to continue to issue letters of credit when necessary. Under the terms of the Credit Agreement, the Company is required to comply with certain covenants, the terms of which are customary and include a Consolidated Net Total Leverage Ratio and a Consolidated Net Interest Coverage Ratio. The Consolidated Net Total Leverage Ratio is calculated as total outstanding debt less the lower of (a) unrestricted cash or (b) $75.0 million divided by Consolidated EBITDA (as defined by the Credit Agreement). With certain exceptions, the covenant requires the Consolidated Net Total Leverage Ratio to be less than 4.00, calculated over the previous twelve months. The Consolidated Net Interest Coverage Ratio is calculated as Consolidated EBITDA divided by Consolidated Net Interest Expense over the previous twelve months, all defined by the Credit Agreement. The covenant requires a Consolidated Net Interest Coverage Ratio of 3.00 or greater. As of September 30, 2023, the Company calculated a Consolidated Net Total Leverage Ratio of 2.19 and Consolidated Net Interest Coverage Ratio of 6.28. The Company was in compliance with all applicable covenants under the Credit Agreement as of September 30, 2023. We do not believe that the covenants represent a significant restriction to our ability to successfully operate the business or to pay our dividends. Costs incurred in establishing the Credit Agreement have been reported as a reduction to the gross debt balance and will be amortized over the respective lives of the arrangements. In addition to the corporate Credit Agreement, we hold smaller credit facilities in Australia, Canada, and the United Kingdom. These allow our businesses to borrow to meet any short-term working capital needs. Table 8.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) Year ended September 30, 2024 $ 89,205 Year ended September 30, 2025 92,860 Year ended September 30, 2026 740,985 Year ended September 30, 2027 3,485 Year ended September 30, 2028 330,994 Total Payments $ 1,257,529 Interest Rate Derivative Instrument We utilize derivatives to reduce our variable interest rate risk. At September 30, 2023, we held the following interest rate swap agreements: • An agreement for a notional amount of $500.0 million, which hedges the floating rate of our Term Loan A debt to a fixed amount of 2.31%. This agreement expires in May 2026; • An agreement for a notional amount of $150.0 million, which hedges the floating rate on the next $150 million of our Term Loan A debt to a fixed amount of 4.38%. This agreement expires in September 2024. The balance of the debt pays interest based upon an index. The floating interest rate on these instruments was converted from LIBOR to SOFR in December 2022, concurrent with our debt agreements. In converting our debt and interest-rate swaps, we utilized the practical expedients allowed under ASU No. 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which allowed us to treat these amendments as though the modification was not substantial. The Company elected to designate these interest rate swaps as cash flow hedges for accounting purposes. As of September 30, 2023 and 2022, we had assets of $31.0 million and $31.4 million, respectively, which were recorded in "other assets" on our Consolidated Balance Sheet. As these derivatives are considered effective, all gains and losses are reflected within "accumulated other comprehensive income" ("AOCI") in the Consolidated Statements of Comprehensive Income. Table 8.3: Gains/(Losses) on Derivatives For the Year Ended September 30, 2023 2022 2021 (in thousands) Gain/(loss) recognized in AOCI on derivatives, net of tax $ 8,558 $ 23,004 $ (811) Amounts reclassified to earnings from accumulated other comprehensive income (8,837) 447 508 Net current period other comprehensive income $ (279) $ 23,451 $ (303) Counterparty Risk The Company is exposed to credit losses in the event of nonperformance by the counterparty to our derivative instrument. Our counterparty has investment-grade credit ratings; accordingly, we anticipate that the counterparty will be able to fully satisfy its obligations under the contracts. Our agreements outline the conditions upon which it or the counterparty are required to post collateral. As of September 30, 2023 and 2022, there was no collateral posted with the Company's counterparty related to the derivatives. |
Debt And Derivatives | DEBT AND DERIVATIVES Table 8.1: Details of Debt As of September 30, 2023 2022 (in thousands) Term Loan A, due 2026 $ 909,375 $ 971,250 Term Loan B, due 2028 344,934 395,000 Subsidiary loan agreements 3,220 64 Funded Debt 1,257,529 1,366,314 Less: Unamortized debt-issuance costs and discounts (7,536) (10,373) Total debt 1,249,993 1,355,941 Less: Current portion of long-term debt (86,844) (63,458) Long-term debt $ 1,163,149 $ 1,292,483 Our principal debt agreement is with JPMorgan Chase Bank, N.A., as Administrative Agent ("Credit Agreement"), comprising of the following: • A term loan A facility ("Term Loan A"), initially comprising $1.1 billion, which matures on May 28, 2026; • A term loan B facility ("Term Loan B"), initially comprising $400 million, which matures May 28, 2028; • A $600 million revolving credit facility ("Revolver"), which matures May 28, 2026. Since December 2022, the interest rates applicable to loans under the Credit Agreement are floating rates based upon the Secured Overnight Financing Rate ("SOFR") plus a margin. Term Loan A and the Revolver margins range between 1% and 2%, based upon our leverage ratio. Term Loan B is set to SOFR plus 2.00%, subject to a SOFR floor of 0.50%. Prior to December 2022, our Credit Agreement utilized the London Interbank Offered Rate as the basis for floating rates. As of September 30, 2023, the annual effective interest rate, including the original issue discount and amortization of debt issuance costs, was 5.97%. The 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 0.30%. Commitment fees are recorded as interest expense on the consolidated statements of operations. The Credit Agreement is available for general corporate purposes, including the funding of working capital, capital expenditures, and possible future acquisitions. In addition to borrowings, it allows us to continue to issue letters of credit when necessary. Under the terms of the Credit Agreement, the Company is required to comply with certain covenants, the terms of which are customary and include a Consolidated Net Total Leverage Ratio and a Consolidated Net Interest Coverage Ratio. The Consolidated Net Total Leverage Ratio is calculated as total outstanding debt less the lower of (a) unrestricted cash or (b) $75.0 million divided by Consolidated EBITDA (as defined by the Credit Agreement). With certain exceptions, the covenant requires the Consolidated Net Total Leverage Ratio to be less than 4.00, calculated over the previous twelve months. The Consolidated Net Interest Coverage Ratio is calculated as Consolidated EBITDA divided by Consolidated Net Interest Expense over the previous twelve months, all defined by the Credit Agreement. The covenant requires a Consolidated Net Interest Coverage Ratio of 3.00 or greater. As of September 30, 2023, the Company calculated a Consolidated Net Total Leverage Ratio of 2.19 and Consolidated Net Interest Coverage Ratio of 6.28. The Company was in compliance with all applicable covenants under the Credit Agreement as of September 30, 2023. We do not believe that the covenants represent a significant restriction to our ability to successfully operate the business or to pay our dividends. Costs incurred in establishing the Credit Agreement have been reported as a reduction to the gross debt balance and will be amortized over the respective lives of the arrangements. In addition to the corporate Credit Agreement, we hold smaller credit facilities in Australia, Canada, and the United Kingdom. These allow our businesses to borrow to meet any short-term working capital needs. Table 8.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) Year ended September 30, 2024 $ 89,205 Year ended September 30, 2025 92,860 Year ended September 30, 2026 740,985 Year ended September 30, 2027 3,485 Year ended September 30, 2028 330,994 Total Payments $ 1,257,529 Interest Rate Derivative Instrument We utilize derivatives to reduce our variable interest rate risk. At September 30, 2023, we held the following interest rate swap agreements: • An agreement for a notional amount of $500.0 million, which hedges the floating rate of our Term Loan A debt to a fixed amount of 2.31%. This agreement expires in May 2026; • An agreement for a notional amount of $150.0 million, which hedges the floating rate on the next $150 million of our Term Loan A debt to a fixed amount of 4.38%. This agreement expires in September 2024. The balance of the debt pays interest based upon an index. The floating interest rate on these instruments was converted from LIBOR to SOFR in December 2022, concurrent with our debt agreements. In converting our debt and interest-rate swaps, we utilized the practical expedients allowed under ASU No. 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which allowed us to treat these amendments as though the modification was not substantial. The Company elected to designate these interest rate swaps as cash flow hedges for accounting purposes. As of September 30, 2023 and 2022, we had assets of $31.0 million and $31.4 million, respectively, which were recorded in "other assets" on our Consolidated Balance Sheet. As these derivatives are considered effective, all gains and losses are reflected within "accumulated other comprehensive income" ("AOCI") in the Consolidated Statements of Comprehensive Income. Table 8.3: Gains/(Losses) on Derivatives For the Year Ended September 30, 2023 2022 2021 (in thousands) Gain/(loss) recognized in AOCI on derivatives, net of tax $ 8,558 $ 23,004 $ (811) Amounts reclassified to earnings from accumulated other comprehensive income (8,837) 447 508 Net current period other comprehensive income $ (279) $ 23,451 $ (303) Counterparty Risk The Company is exposed to credit losses in the event of nonperformance by the counterparty to our derivative instrument. Our counterparty has investment-grade credit ratings; accordingly, we anticipate that the counterparty will be able to fully satisfy its obligations under the contracts. Our agreements outline the conditions upon which it or the counterparty are required to post collateral. As of September 30, 2023 and 2022, there was no collateral posted with the Company's counterparty related to the derivatives. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The following assets and liabilities are recorded at fair value on a recurring basis. • We hold mutual fund assets within a Rabbi Trust to cover liabilities in our deferred compensation plan. These assets have prices quoted within active markets and, accordingly, are classified as level 1 within the fair value hierarchy. • We have interest rate swap agreements serving to reduce our interest rate risk on our debt. These agreements can be valued using observable data and, accordingly, are classified as level 2 within the fair value hierarchy. • We anticipate paying additional consideration for certain acquisitions based upon the subsequent performance of the businesses acquired. This liability is based upon our internal assumptions over revenues, margins, volumes, and contract terms. Accordingly, these inputs are not observable and are classified as level 3 within the fair value hierarchy. Table 9.1: Fair Value Measurements As of September 30, 2023 Level 1 Level 2 Level 3 Balance (in thousands) Assets: Deferred compensation assets - Rabbi Trust $ 26,445 $ — $ — $ 26,445 Interest rate swaps - $650 million notional value — 31,027 — 31,027 Total assets $ 26,445 $ 31,027 $ — $ 57,472 Liabilities: Contingent consideration $ — $ — $ 9,903 $ 9,903 Total liabilities $ — $ — $ 9,903 $ 9,903 The following table presents a reconciliation of the contingent consideration, which is measured and recorded at fair value on a recurring basis using Level 3 inputs: Table 9.2: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Contingent Consideration (in thousands) Balance as of September 30, 2022 $ 16,236 Adjustments to fair value recorded in the current year 2,873 Cash payments (9,431) Foreign currency translation 225 Balance as of September 30, 2023 $ 9,903 The fair values of receivables, prepaid assets, other assets, accounts payable, accrued costs, and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The carrying value of our debt is consistent with the fair value as the stated interest rates in the agreements are consistent with the current market rates used in notes with similar terms in the markets (Level 2 inputs). Other long-lived assets are reviewed when events indicate they may no longer be able to recover their value. Assets that we cease using or which do not appear able to generate sufficient future cash flows to support their values are reviewed and, where necessary, their value is written down. In this instance, the expense is reported in the same place where future expenses were anticipated to be recorded. For example, a fixed asset impairment would be recorded in depreciation expense. All the non-recurring fair values are considered Level 3, as the inputs are not observable and based on internal assumptions. During the year ended September 30, 2023, we recorded impairment charges of $ 9.5 million 12.5 million not |
Leases
Leases | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES Table 10.1: Details of Lease Costs For the Year Ended September 30, 2023 2022 2021 (in thousands) Operating lease cost $ 76,630 $ 90,423 $ 111,246 Short-term lease cost 7,729 11,642 7,044 Variable lease cost 12,417 12,032 11,124 Total operating lease costs $ 96,776 $ 114,097 $ 129,414 Table 10.2: Future Minimum Lease Payments Under Non-cancelable Operating Leases Office Space Equipment Total (in thousands) Year ended September 30, 2024 $ 57,829 $ 490 $ 58,319 Year ended September 30, 2025 52,637 242 52,879 Year ended September 30, 2026 34,667 30 34,697 Year ended September 30, 2027 28,043 9 28,052 Year ended September 30, 2028 20,640 5 20,645 Thereafter 6,193 — 6,193 Total minimum lease payments 200,009 776 200,785 Less: Imputed interest (21,483) (83) (21,566) Total lease liabilities $ 178,526 $ 693 $ 179,219 Our weighted average remaining lease term as of September 30, 2023, is 3.9 years. For the years ended September 30, 2023, 2022, and 2021, we made cash payments of $77.6 million, $86.5 million, and $96.9 million for amounts included in our lease liabilities, respectively. New or amended leases resulted in additional right-of-use assets of $109.4 million, $43.5 million, and $60.2 million for the same periods, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Table 11.1: Components of Provision for Income Taxes For the Year Ended September 30, 2023 2022 2021 (in thousands) Current provision/(benefit): Federal $ 34,033 $ 45,042 $ 62,062 State and local 12,332 15,371 20,077 Foreign 584 2,653 16,919 Total current provision for income taxes 46,949 63,066 99,058 Deferred tax expense/(benefit): Federal (1,495) 7,107 (2,527) State and local (673) 2,130 (590) Foreign 3,720 967 (3,460) Total deferred tax expense/(benefit) 1,552 10,204 (6,577) Provision for income taxes $ 48,501 $ 73,270 $ 92,481 Table 11.2: Components of Income before Provision for Income Taxes by Country For the Year Ended September 30, 2023 2022 2021 (in thousands) Domestic $ 198,115 $ 274,641 $ 339,647 Foreign 12,178 2,457 44,034 Income before provision for income taxes $ 210,293 $ 277,098 $ 383,681 Table 11.3: Reconciliation of Tax Expense at Statutory Rate to Actual Tax Expense For the Year Ended September 30, 2023 2022 2021 (dollars in thousands) Tax expense at statutory rate $ 44,162 $ 58,190 $ 80,573 Increase/(decrease) due to: State income taxes, net of federal benefit 11,501 14,244 18,350 Foreign taxation rate differentials (590) (709) 4,212 Non-deductible expenses 2,889 882 2,254 Global intangible low taxed income 2,274 — — Valuation allowance - foreign jurisdictions 2,010 4,875 2,285 Tax credits (6,645) (5,239) (5,072) Excess tax expense/(benefits) from stock-based compensation (1,399) 1,143 (6,008) Other (5,701) (116) (4,113) Income tax expense $ 48,501 $ 73,270 $ 92,481 U.S. Federal Statutory tax rate 21.0 % 21.0 % 21.0 % Effective tax rate 23.1 % 26.4 % 24.1 % Table 11.4: Components of Deferred Tax Assets and Liabilities As of September 30, 2023 2022 (in thousands) Deferred tax assets/(liabilities): Costs deductible in future periods $ 37,036 $ 36,604 Deferred revenue 8,712 7,273 Stock compensation 6,212 4,918 Capital loss carryforward 2,391 2,391 Net operating loss carryforwards 33,278 6,666 Amortization of goodwill and intangibles (189,316) (198,903) Capitalized software (28,246) (15,445) Accounts receivable - unbilled (7,963) (12,087) Property and equipment (3,437) (2,577) Prepaid expenses (10,906) (11,522) Financial instruments (8,158) (8,261) Valuation allowance (34,643) (8,075) Other (6,399) (2,111) Net deferred tax liability $ (201,439) $ (201,129) 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. Table 11.5: Deferred Tax Assets and Liabilities By Jurisdiction Positions As of September 30, 2023 2022 (in thousands) Total of tax jurisdictions with net deferred tax assets $ 2,459 $ 4,970 Total of tax jurisdictions with net deferred tax liabilities (203,898) (206,099) Net deferred tax liabilities $ (201,439) $ (201,129) 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, 2023, our foreign subsidiaries held approximately $31.1 million of cash and cash equivalents in either U.S. Dollars or local currencies. The provision for income taxes includes all provision to return adjustments included in the year recognized in the financial statements. The tax loss on the sale of a small commercial practice in the United Kingdom and our Swedish subsidiary increased both the net operating loss carryforwards as well as the valuation allowance. In both cases, the losses are able to be carried forward indefinitely. 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 $4.9 million and $7.3 million at September 30, 2023 and 2022, respectively. We report interest and penalties as a component of income tax expense. In the year ended September 30, 2021, we recognized interest expense relating to unrecognized tax benefits of $0.1 million, with no comparative amounts for the years ended September 30, 2023 and 2022. 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). Table 11.6: Reconciliation of the Beginning and Ending Amounts of Potential Tax Benefits For the Year Ended September 30, 2023 2022 2021 (in thousands) Balance at beginning of year $ 8,676 $ 12,642 $ 1,798 Additions for acquired unrecognized tax benefits — — 11,244 Decreases for lapse of statute of limitations (2,051) (1,412) — Decreases for settlements with taxing authorities (692) (4,785) — Increases for tax positions taken in current year 300 2,231 300 Decreases for tax positions taken in current year — — (700) Balance at end of year $ 6,233 $ 8,676 $ 12,642 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 2020 and to state and local income tax examinations by tax authorities for years before 2018. 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 2019. |
Equity
Equity | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity | EQUITY Stock Compensation We grant restricted stock units ("RSUs") and performance stock units ("PSUs") to eligible participants under our 2021 Omnibus Incentive Plan, which was approved by the Board of Directors and the Company's shareholders. The RSUs granted to employees vest ratably over three Table 12: Restricted Stock Units and Performance Based Stock Units Restricted Stock Units Performance Stock Units Total Weighted Average Grant Date Fair Value Non-vested outstanding units as of September 30, 2022 552,643 188,315 740,958 $ 77.08 Granted 353,687 140,693 494,380 70.38 Vested (337,684) (61,791) (399,475) 71.87 Forfeited (87,512) (96,459) (183,971) 76.13 Non-vested outstanding units as of September 30, 2023 481,134 170,758 651,892 $ 75.46 In addition to the non-vested shares, as part of individual elections made in the deferred compensation plan, certain directors and employees held approximately 286,000 vested but not issued awards as of September 30, 2023. These vested unissued units are included in outstanding shares for basic and diluted earnings per share but are not reported as issued and outstanding in the Consolidated Balance Sheets and Consolidated Statements of Changes in Shareholders' Equity. As of September 30, 2023, the intrinsic value of RSUs and PSUs expected to vest was $48.7 million. For the years ended September 30, 2023, 2022, and 2021, we recognized share-based compensation expenses of $29.5 million, $30.5 million, and $28.6 million, respectively. The income tax benefit recorded on these charges for the same years was $8.1 million, $6.9 million, and $13.5 million, respectively. The expenses related to share-based compensation awards are recorded in selling and administrative expenses. As of September 30, 2023, there was $42.1 million of total estimated unrecognized compensation cost related to non-vested RSUs and PSUs. This cost is expected to be recognized over four years. The weighted-average grant-date fair value of RSUs granted in years ended September 30, 2022 and 2021, was $79.75 and $76.80, respectively. The total fair value of RSUs vested during the years ended September 30, 2023, 2022, and 2021, was $29.8 million, $23.5 million, and $28.9 million, respectively. Stock Repurchase Programs Under a resolution adopted in March 2020, the Board of Directors authorized the purchase, at management's discretion, of up to $200.0 million of our common stock. During the years ended September 30, 2022 and 2021, we purchased 1.4 million and 0.1 million common shares at a cost of $96.1 million and $3.4 million, respectively. We made no purchases during fiscal year 2023. As of September 30, 2023, $50.6 million remained available for future stock purchases. |
Cash And Cash Equivalents And R
Cash And Cash Equivalents And Restricted Cash | 12 Months Ended |
Sep. 30, 2023 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |
Cash And Cash Equivalents And Restricted Cash | CASH AND CASH EQUIVALENTS AND RESTRICTED CASH Table 13.1: Details of Cash and Cash Equivalents and Restricted Cash As of September 30, 2023 2022 (in thousands) Cash and cash equivalents $ 65,405 $ 40,658 Restricted cash 56,686 96,137 Cash, cash equivalents, and restricted cash $ 122,091 $ 136,795 Restricted cash is recorded within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets. At September 30, 2022, this balance includes $60.7 million of funds received from a customer which had previously been sold under our Receivables Purchase Agreement; this is offset by a corresponding liability in "Other current liabilities." No similar arrangements existed at September 30, 2023. The remaining balance includes funds held in trust on behalf of certain clients, offset with a corresponding liability in "Other current liabilities" and certain collateral obligations on contracts. Table 13.2: Supplemental Disclosures of Cash Flow Information For the Year Ended September 30, 2023 2022 2021 (in thousands) Interest payments $ 81,098 $ 43,094 $ 14,539 Income tax payments $ 61,050 $ 76,038 $ 99,899 |
Other Balance Sheet Components
Other Balance Sheet Components | 12 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Other Balance Sheet Components | OTHER BALANCE SHEET COMPONENTS Accounts Receivable, Net Table 14.1: Details of Accounts Receivable, Net As of September 30, 2023 2022 (in thousands) Billed and billable receivables $ 692,707 $ 723,979 Unbilled receivables 137,885 91,404 Allowance for credit losses (3,719) (8,273) Accounts receivable, net $ 826,873 $ 807,110 Table 14.2: Changes in Allowance for Credit Losses For the Year Ended September 30, 2023 2022 2021 (in thousands) Balance at beginning of period $ 8,273 $ 8,044 $ 6,051 Provision for estimated credit losses 7,097 6,799 11,038 Write-offs, net of recoveries (11,651) (6,570) (9,045) Balance at end of period $ 3,719 $ 8,273 $ 8,044 On September 21, 2022, we entered into a Receivables Purchase Agreement with Wells Fargo Bank N.A., under which we may sell certain US-originated accounts receivable balances up to a maximum amount of $200.0 million. In return for these sales, we receive a cash payment equal to the face value of the receivables less a financing charge. We account for these transfers as sales. We have no retained interest in the transferred receivables other than administrative responsibilities, and Wells Fargo has no recourse for any credit risk. We estimate that the implicit servicing fees for an arrangement of this size and type would be immaterial. For the years ended September 30, 2023 and 2022, the fair value of accounts receivables transferred to Wells Fargo and derecognized from our balance sheet was $450.4 million and $74.2 million, respectively. In exchange for these sales, we received cash of $447.7 million and $73.9 million for the same periods, respectively. The balance, representing a loss on sale from these transfers, is included within our selling, general, and administrative expenses. We have recorded these transactions within our operating cash flows. Property and Equipment, Net Table 14.3: Details of Property and Equipment, Net As of September 30, 2023 2022 (in thousands) Office furniture and equipment $ 134,910 $ 209,258 Leasehold improvements 78,520 78,727 Property and equipment, at cost 213,430 287,985 Accumulated depreciation (174,599) (235,727) Property and equipment, net $ 38,831 $ 52,258 Depreciation expense for the years ended September 30, 2023, 2022, and 2021, was $28.4 million, $28.3 million, and $34.1 million, respectively. This expense was recorded within "cost of revenue" and "selling, general, and administrative expenses" on our consolidated statements of operations. In August 2022, we sold the land and buildings that held our corporate headquarters, resulting in a gain on sale of $11.0 million. Capitalized Software Costs, Net Capitalized software is recorded at cost and includes purchased, internally-developed, and externally-developed software used in our operations. Amortization expense is provided using the straight-line method over the estimated useful lives of the software. A summary of activities related to capitalized software costs is shown below: Table 14.4: Details of Capitalized Software, Net As of September 30, 2023 2022 (in thousands) Capitalized software $ 195,813 $ 161,353 Accumulated amortization (88,002) (102,613) Capitalized software, net $ 107,811 $ 58,740 Amortization expense related to capitalized software for the years ended September 30, 2023, 2022, and 2021 was $26.3 million, $14.1 million, and $12.3 million, respectively. The majority of this amortization was recorded within our "cost of revenue" and "selling, general, and administrative expenses" on our consolidated statements of operations. Deferred Contract Costs, Net Deferred contract costs consist of contractually recoverable costs to fulfill 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. A summary of activities related to deferred contract costs is shown below: Table 14.5: Details of Deferred Contracts Costs, Net As of September 30, 2023 2022 (in thousands) Deferred contract costs $ 77,597 $ 76,498 Accumulated amortization (32,225) (28,766) Total deferred contract costs, net $ 45,372 $ 47,732 Amortization expense related to deferred contract costs for the years ended September 30, 2023, 2022, and 2021 was $12.7 million, $8.9 million, and $13.6 million, respectively. These amounts were recorded within our "cost of revenue" on our consolidated statements of operations. Accumulated Other Comprehensive Income All amounts recorded in accumulated other comprehensive loss are related to our foreign currency translations and interest rate swap, net of tax. The following table shows changes in accumulated other comprehensive loss. Table 14.6: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized (loss)/gain on derivatives, net of tax Total (in thousands) Balance as of September 30, 2020 $ (42,638) $ — $ (42,638) Other comprehensive income/(loss) before reclassifications 3,033 (811) 2,222 Amounts reclassified from accumulated other comprehensive income/(loss) — 508 508 Net current period other comprehensive income/(loss) 3,033 (303) 2,730 Balance as of September 30, 2021 (39,605) (303) (39,908) Other comprehensive income/(loss) before reclassifications (17,504) 23,004 5,500 Amounts reclassified from accumulated other comprehensive income/(loss) — 447 447 Net current period other comprehensive income/(loss) (17,504) 23,451 5,947 Balance as of September 30, 2022 (57,109) 23,148 (33,961) Other comprehensive income/(loss) before reclassifications 6,509 8,558 15,067 Amounts reclassified from accumulated other comprehensive income/(loss) 116 (8,837) (8,721) Net current period other comprehensive income/(loss) 6,625 (279) 6,346 Balance as of September 30, 2023 $ (50,484) $ 22,869 $ (27,615) |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES 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 federal, state, local, and foreign governments. 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. We evaluate, on a regular basis, developments in our litigation matters and establish or make adjustments to our accruals as appropriate. A liability is accrued if a loss is probable and the amount of such loss can be reasonably estimated. If the risk of loss is probable, but the amount cannot be reasonably estimated, or the risk of loss is only reasonably possible, a potential liability will be disclosed but not accrued. Due to the inherent uncertainty in the outcome of litigation, our estimates and assessments may prove to be incomplete or inaccurate and could be impacted by unanticipated events and circumstances, adverse outcomes, or other future determinations. MOVEit Cybersecurity Incident Litigation As the Company has previously disclosed, on May 31, 2023, Progress Software Corporation, the developer of MOVEit (“MOVEit”), a file transfer application used by many organizations to transfer data, announced a critical zero-day vulnerability in the application that allowed unauthorized third parties to access its customers’ MOVEit environments. Maximus uses MOVEit for internal and external file sharing purposes, including to share data with government customers related to Maximus's services in support of certain government programs. Based on its review of the impacted files to date, the Company has provided notices to individuals whose personal information, including social security numbers, protected health information, and/or other personal information, may have been included in the impacted files. On August 1, 2023, a purported class action was filed against Maximus Federal Services, Inc. (a wholly-owned subsidiary of Maximus, Inc.) in the U.S. District Court for the Eastern District of Virginia arising out of the MOVEit cybersecurity incident – Bishop v. Maximus Federal Services, Case No. 1:23-cv-01019 (U.S. Dist. Ct. E. D. VA). The plaintiff, who purports to represent a nationwide class of individuals, alleges, among other things, that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable information and protected health information. Since August 1, 2023, approximately nine additional cases arising out of the MOVEit cybersecurity incident have been filed in federal courts against Maximus, Inc. and its subsidiaries. These cases each allege substantially similar allegations on behalf of putative nationwide classes and on behalf of various putative state subclasses. On October 4, 2023, the United States Judicial Panel on Multidistrict Litigation (“JPML”) granted a Motion to Transfer that created a Multidistrict Litigation (“MDL”) in the District of Massachusetts for all cases in federal court related to the MOVEit cybersecurity incident, including cases filed against Maximus and other defendants, including Progress Software Corporation, the creator of MOVEit. All of the cases against Maximus, Inc. and its subsidiaries in federal courts outside of the District of Massachusetts that are related to the MOVEit cybersecurity incident have now been transferred to the MDL under the caption In re: MOVEit Customer Data Security Breach Litigation. The plaintiffs in Bishop and the other cases against the company in the MDL seek damages to be proved at trial. The Company is not able to determine or predict the ultimate outcome of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. On September 6, 2023, an individual action was filed in state court in the Florida Circuit Court for the 7th Judicial Circuit, Volusia County: Taylor v. Maximus Federal Services, Case No. 2023-12349 (Fla. Cir. Ct., 7th Jud. Cir., Volusia Cnty.), also arising out of the MOVEit cybersecurity incident. The plaintiff alleges, among other things, that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable information and protected health information. Since September 6, 2023, approximately six additional individual actions have been filed against Maximus, Inc. and its subsidiaries in Florida state courts. These actions all raise substantially similar allegations and legal claims. The plaintiffs in these individual actions seek damages to be proved at trial. The Company is not able to determine or predict the ultimate outcome of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. On October 27, 2023, a purported class action was filed in state court in Marion Superior Court in Marion County, Indiana, against Maximus Health Services, Inc. (a wholly owned subsidiary of Maximus, Inc.): Solis Garcia v. Maximus Health Services, Inc., Case No. 49D12-2310-CT-042115 (Ind. Super. Ct., Marion Cnty.), again arising out of the MOVEit cybersecurity incident. The plaintiff, who purports to represent a class comprised of Indiana residents, alleges, among other things that the Company’s negligence resulted in the compromise of the plaintiff’s personally identifiable information and protected health information. The plaintiff seeks damages to be proved at trial. The Company is not able to determine or predict the ultimate outcome of any of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. The Company is not able to determine or predict the ultimate outcome of any of these proceedings or reasonably provide an estimate or range of the possible outcome or loss, if any. Census Project – Civil Investigation Demand (“CID”) In 2021, Maximus received a CID from the U.S. Department of Justice (“DOJ”) pursuant to the False Claims Act seeking records pertaining to the Census project. The CID requested the production of documents related to the Company’s compliance with telephone call quality assurance scoring and reporting requirements. The Company is cooperating with the DOJ in its investigation and providing responses and information on an ongoing basis. The Company recorded an accrual of $3.4 million for the year ended September 30, 2023. While it is reasonably possible that losses exceeding the amount accrued may be incurred, it is not possible at this time to estimate the additional possible loss in excess of the amount already accrued. Performance Bonds Certain contracts require us to provide a surety bond as a guarantee of performance. As of September 30, 2023, we had performance bond commitments totaling $39.4 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. |
Employee Benefit Plans And Defe
Employee Benefit Plans And Deferred Compensation | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans And Deferred Compensation | EMPLOYEE BENEFIT PLANS AND DEFERRED COMPENSATION Defined Contribution Plan We have 401(k) plans for the benefit of employees who meet certain eligibility requirements. The plans provide for a company match, specified company contributions and discretionary company contributions. For the years ended September 30, 2023, 2022, and 2021, we contributed $34.1 million, $28.0 million, and $17.3 million to the 401(k) plans, respectively. Outside the U.S., we have a number of defined contribution pension plans and other employee benefit plans. For the years ended September 30, 2023, 2022, and 2021, we contributed $19.8 million, $23.7 million, and $22.8 million to these plans, respectively. Deferred Compensation Plan 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 86% of the liabilities as of September 30, 2023. The assets within the Rabbi Trust include $26.4 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. Refer to "Note 9. Fair Value Measurements" for more details. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENTSOn October 6, 2023, our Board of Directors declared a quarterly cash dividend of $0.30 for each share of our common stock outstanding. The dividend is payable on November 30, 2023, to shareholders of record on November 15, 2023. Based upon the number of shares outstanding, we anticipate a cash payment of approximately $18.3 million.Subsequent to year end, we completed the sale of our businesses in Singapore and Italy, as well as our employment services business in Canada. A small loss will be recorded in the first quarter of fiscal year 2024. In connection with the sale, we recorded an impairment charge of $2.9 million at September 30, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 161,792 | $ 203,828 | $ 291,200 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements, including the notes, include the accounts of the Company and its wholly-owned subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). All intercompany balances and transactions have been eliminated in consolidation. Our fiscal year ends on September 30 and unless otherwise noted, references to fiscal year or fiscal are for fiscal years ended September 30. The accompanying consolidated financial statements present our financial position as of September 30, 2023, and 2022 and our results of operations for fiscal years 2023, 2022, and 2021. |
Use of Estimates | Use of Estimates The preparation of these financial statements, in conformity with U.S. 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 long-lived assets, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation. Our balance sheet includes a number of long-lived assets, including property and equipment, capitalized software, operating lease right-of-use assets, deferred contract costs, and intangible assets. These assets are depreciated or amortized over their estimated useful economic lives but are subject to impairment if events indicate that the carrying amounts may not be recoverable. As disclosed in "Note 4. Revenue Recognition," some of our performance-based contract revenue is recognized based upon future milestones defined in each contract. This is the case in many of our employment services contracts in the Outside the U.S. Segment, where we are paid as individuals attain employment milestones, which may take many months to achieve. We recognize revenue over the period of performance. Our estimates vary from contract to contract but may include the number of participants within a portfolio reaching employment milestones and the service delivery periods for participants reaching the employment milestone. As disclosed in "Note 6. Business Combinations and Divestitures", we acquired several businesses. For assets acquired and liabilities assumed, we are required to identify and recognize these balances at their fair value as of the date of acquisition. In May 2021, we acquired VES Group, Inc. As part of the acquisition, we allocated a valuation of $27 million to certain technology assets used by the business, which we elected to amortize over twelve years, which was our best estimate of asset life at that time. In fiscal year 2023, we have taken the opportunity to improve our technology portfolio, including the development of technology, that will eventually replace much of the acquired technology. Accordingly, we have revised the asset life on the existing technology, assuming the assets will cease being used by September 2026. This change in estimated useful life will result in additional annual amortization expense of $3.8 million per year. In fiscal year 2023, this change reduced our diluted earnings per share by approximately $0.04. We are required to evaluate our long-lived assets used in operations when events and circumstances indicate that the valuation of the assets exceeds their fair value. • Our capitalized software balance includes $23 million related to technology for new services within our U.S. Services Segment. During the fourth quarter of fiscal year 2023, we evaluated whether these assets were impaired by comparing the carrying value of the assets to our anticipated future cash flows. At this time, our probability-weighted undiscounted cash flows continue to show that we will recover the cost of our assets through our contract pipeline. It is possible that changes in our estimates of future cash flows or unbudgeted costs related to these capitalized software assets may change in the near term and result in the need to write these assets down to fair value. • During the first quarter of fiscal year 2024, we completed the sale of some of our international businesses. In the course of the sale process, we noted that the carrying value of the assets being disposed of would exceed the sale price. As a result, we recorded an impairment charge of $2.9 million at September 30, 2023. This charge was spread across various long-lived assets, including fixed assets and lease right-of-use assets. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 are precluded from use for general business needs through contractual requirements. These requirements typically include serving as collateral bonds and letters of credit or where we hold funds on behalf of clients. We report our restricted cash balances within "Prepaid expenses and other current assets" on our balance sheet. |
Revenue Recognition | Revenue Recognition We recognize revenue as, or when, we satisfy performance obligations under a contract. We account for a contract when the parties approve 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. 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. |
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 credit losses over the contractual payment terms of the receivable. We periodically reassess these amounts by analyzing reasonably available information as of the balance sheet date, including the length of time that the receivable has been outstanding, historical bad debts and aging trends, and other general and contract-specific factors. We present billed, billable, and unbilled receivables as one component on our consolidated balance sheets. Our deferred revenue is presented as a separate item on our consolidated balance sheet, broken out by current and long-term portion. Unbilled receivables and deferred revenue 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 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 - the value that 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. |
Credit Risk | Credit Risk Credit risk has not historically been significant to our business due to the nature of our customers. 48% of our revenue is from the U.S. federal government, and much of our Outside the U.S. segment is from national governments. 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. |
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. 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 additional quantitative analysis is required. If such an impairment is more-likely-than-not, or if we choose to bypass this qualitative assessment, a quantitative 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 is determined to be impaired. |
Intangible Assets | Intangible Assets All of our intangible assets are acquired through business combinations. They are separately identified and recorded at fair value upon acquisition. We use judgment in identifying, valuing, and assigning a useful economic life to assets as they are acquired. The judgments required vary with the type of asset but may include projections of future results, estimated costs to recreate or replace assets, the cost of utilizing other, similar assets provided by a third party, and an appropriate cost of capital. Where appropriate, we utilize the services of a third-party specialist to assist us in these valuations. We amortize our intangible assets over their estimated useful lives on a straight-line basis. We believe this reflects the manner in which the value from our customer relationships, technology, and other assets is realized by the business. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost. Depreciation is recorded over the assets' respective useful economic lives using the straight-line method, which are not to exceed seven years. 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. |
Capitalized Software | Capitalized Software All of our 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 amortized using the straight-line method over the estimated useful life of the software, ranging from three |
Deferred Contract Costs | Deferred Contract Costs Deferred contract costs consist of contractually recoverable costs to fulfill services 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 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 expense, net" on our consolidated statements of operations. |
Contingencies | Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. Where claims are reasonably possible, we disclose a potential liability. |
Fair Value Measurements | Fair Value Measurements U.S. GAAP provides a framework for measuring fair value, establishes a fair value hierarchy of the valuation techniques used to measure the fair value, and requires certain disclosures relating to fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between marketplace participants. The three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value, is as follows: • Level 1 - Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; • Level 2 - Inputs, other than the quoted market prices included in Level 1, which are observable for the asset or liability, either directly or indirectly; and • Level 3 - Unobservable inputs for the asset or liability, which is typically based on an entity's own assumptions when there is little, if any, related market data available. We evaluate assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made. 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 16. Employee Benefit Plans and Deferred Compensation" for further details. We use derivative instruments to manage interest rate exposure. All derivative instruments are recorded on the balance sheet at fair value. The valuation is calculated based on observable inputs (Level 2). See "Note 8. Debt and Derivatives" for further details. We record contingent consideration payments related to acquisitions that may be paid in the future. The related liabilities are recorded on our consolidated balance sheets at estimated fair value under the heading "Other liabilities" and updated on a quarterly basis as an acquisition-related expense or benefit. The valuation of this liability is derived from internal estimates of future performance and not from inputs that are observable (Level 3). See "Note 6. Business Combinations and Divestitures" for further details. |
Leases | Leases We enter into contractual arrangements primarily for the use of real estate facilities, information technology equipment, and certain other equipment. These arrangements contain a lease when we control the underlying asset and have the right to obtain substantially all of the economic benefits or outputs from the asset. Where contracts include both lease and non-lease components, we do not separate the non-lease components in our accounting. The majority of our leases are operating leases. 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, country, and lease-specific factors. The weighted average incremental borrowing rate utilized as of September 30, 2023, was 5.5%. 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 that serve management and support functions are expensed through "selling, general, and administrative expenses." |
Stock Compensation Plan | Stock Compensation Plan We grant both restricted stock units ("RSUs") and performance stock units ("PSUs") to eligible participants under our 2021 Omnibus Incentive Plan, which was approved by the Board of Directors and the Company's shareholders. The fair value of each RSU is equal to the market price of our common stock at the date of the grant, which is expensed ratably over the vesting period. The RSUs granted vest ratably over one We issue PSUs with targets based upon profit metrics. These PSUs vest in full at the end of a three-year period. The fair value of each award is based upon the market price of the common stock on the day of the grant, and expense is recorded based upon our estimate of how much of the award will vest over the three years of the award. We issue PSUs with a target based upon total shareholder return. These PSUs vest in full after three years. The fair value of each award is based upon an assessment performed at the grant date and is expensed over the life of the award regardless of whether the targets are reached. Certain executive awards include a retirement provision whereby such awards fully vest upon an employee's retirement. We recognize total compensation expense of the awards for eligible participants ratably over the shorter of the vesting period or the employees' retirement eligibility date. |
Derivative Instruments | Derivative Instruments We use interest rate swap contracts to lock a portion of the variability of the interest payments on long-term debt. We have elected to designate these derivative instruments as cash flow hedges. The effective portion of changes in the fair value of the derivative is recorded to accumulated other comprehensive income and is reclassified to earnings, through "Interest expense", when the underlying forecasted transaction affects earnings. Cash flows from derivative instruments are included in net cash provided by operating activities in the consolidated statements of cash flows. We reassess the effectiveness of the hedges on a quarterly basis. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for each of the Company's Business Segments | Table 3.1: Results of Operation by Business Segment For the Year Ended September 30, 2023 2022 2021 Amount % (1) Amount % (1) Amount % (1) (dollars in thousands) Revenue: U.S. Federal Services $ 2,403,606 $ 2,259,744 $ 1,893,284 U.S. Services 1,812,069 1,607,612 1,662,110 Outside the U.S. 689,053 763,662 699,091 Revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 Gross profit: U.S. Federal Services $ 557,886 23.2 % $ 519,440 23.0 % $ 432,551 22.8 % U.S. Services 377,541 20.8 % 343,004 21.3 % 408,050 24.6 % Outside the U.S. 93,181 13.5 % 77,366 10.1 % 106,374 15.2 % Gross profit $ 1,028,608 21.0 % $ 939,810 20.3 % $ 946,975 22.3 % Selling, general, and administrative expenses: U.S. Federal Services $ 308,197 12.8 % $ 284,509 12.6 % $ 243,485 12.9 % U.S. Services 194,991 10.8 % 160,902 10.0 % 153,609 9.2 % Outside the U.S. 102,311 14.8 % 92,536 12.1 % 86,248 12.3 % Divestiture related charges (2) 3,751 NM — NM — NM Other (4) 29,973 NM (3,454) NM 10,746 NM Selling, general, and administrative expenses $ 639,223 13.0 % $ 534,493 11.5 % $ 494,088 11.6 % Operating income/(loss): U.S. Federal Services $ 249,689 10.4 % $ 234,931 10.4 % $ 189,066 10.0 % U.S. Services 182,550 10.1 % 182,102 11.3 % 254,441 15.3 % Outside the U.S. (9,130) (1.3) % (15,170) (2.0) % 20,126 2.9 % Amortization of intangible assets (94,591) NM (90,465) NM (44,357) NM Divestiture related charges (2) (3,751) NM — NM — NM Gain on sale of land and building (3) — NM 11,046 NM — NM Other (4) (29,973) NM 3,454 NM (10,746) NM Operating income $ 294,794 6.0 % $ 325,898 7.0 % $ 408,530 9.6 % Depreciation and amortization: U.S. Federal Services $ 18,336 0.8 % $ 12,332 0.5 % $ 12,986 0.7 % U.S. Services 22,674 1.3 % 16,528 1.0 % 20,350 1.2 % Outside the U.S. 13,715 2.0 % 13,470 1.8 % 13,025 1.9 % Depreciation and amortization $ 54,725 1.1 % $ 42,330 0.9 % $ 46,361 1.1 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2) During fiscal year 2023, we sold a small commercial practice in the United Kingdom and our employment operations business in Sweden, both subsidiaries within our Outside the U.S. Segment, resulting in a loss of $0.9 million. In addition, we recorded impairment losses of $2.9 million on businesses sold subsequent to fiscal year end. Refer to "Note 6. Business Combinations and Divestitures" and "Note 17. Subsequent Events" for more details. (3) During fiscal year 2022, we sold the land and building that held our corporate headquarters, resulting in a gain on sale of $11.0 million. (4) Other includes credits and costs that are not allocated to a particular segment. For the fiscal year 2023, these charges include $29.3 million related to the costs of a previously disclosed cybersecurity incident. Other charges include direct costs of acquisitions. These costs are excluded from measuring each segment's operating performance. |
Schedule of Identifiable Assets by Segment | Table 3.2: Assets by Segment As of September 30, 2023 2022 (in thousands) U.S. Federal Services $ 2,716,367 $ 2,858,662 U.S. Services 780,737 736,970 Outside the U.S. 278,289 277,016 Corporate 210,404 120,066 Assets $ 3,985,797 $ 3,992,714 |
Schedule of Long-Lived Assets by Geography | Table 3.3: Long-Lived Assets by Geography As of September 30, 2023 2022 (in thousands) United States $ 313,830 $ 238,523 Outside the US 39,660 42,410 Total $ 353,490 $ 280,933 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Table 4.1: Revenue by Service Type For the Year Ended September 30, 2023 % 2022 % 2021 % (dollars in thousands) Program Operations $ 2,607,263 53.2 % $ 2,596,801 56.1 % $ 2,755,820 64.8 % Clinical Services 1,486,040 30.3 % 1,176,081 25.4 % 699,424 16.4 % Employment & Other 520,981 10.6 % 551,755 11.9 % 463,695 10.9 % Technology Solutions 290,444 5.9 % 306,381 6.6 % 335,546 7.9 % Total revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 Table 4.2: Revenue by Contract Type For the Year Ended September 30, 2023 % 2022 % 2021 % (dollars in thousands) Performance-based $ 2,425,597 49.5 % $ 2,091,608 45.2 % $ 1,416,562 33.3 % Cost-plus 1,238,574 25.3 % 1,248,759 27.0 % 1,237,995 29.1 % Fixed price 717,167 14.6 % 627,402 13.5 % 553,645 13.0 % Time and materials 523,390 10.7 % 663,249 14.3 % 1,046,283 24.6 % Total revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 Table 4.3: Revenue by Customer Type For the Year Ended September 30, 2023 % 2022 % 2021 % (dollars in thousands) U. S. federal government agencies $ 2,344,863 47.8 % $ 2,189,303 47.3 % $ 1,805,131 42.4 % U.S. state government agencies 1,800,814 36.7 % 1,605,457 34.7 % 1,654,555 38.9 % International government agencies 663,044 13.5 % 722,192 15.6 % 663,180 15.6 % Other, including local municipalities and commercial customers 96,007 2.0 % 114,066 2.5 % 131,619 3.1 % Total revenue $ 4,904,728 $ 4,631,018 $ 4,254,485 Table 4.4: Effect of Changes in Contract Estimates For the Year Ended September 30, 2023 2022 (in thousands, except per share data) Benefit to/(reduction of) revenue recognized due to changes in contract estimates $ (13,346) $ (2,500) Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates $ (0.16) $ (0.03) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares used to Compute Earnings Per Share | Table 5: Weighted Average Number of Shares - Earnings Per Share For the Year Ended September 30, 2023 2022 2021 (in thousands) Basic weighted average shares outstanding 61,125 61,774 62,072 Dilutive effect of unvested RSUs and PSUs 325 195 293 Denominator for diluted earnings per share 61,450 61,969 62,365 |
Business Combinations and Div_2
Business Combinations and Divestitures (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Table 6.1: VES Valuation Allocation of Assets and Liabilities (in thousands) Consideration paid: Cash consideration, net of cash acquired 1,370,631 Assets acquired: Accounts receivable - billed, billable and unbilled $ 44,078 Prepaid expenses and other current assets 7,955 Property and equipment, net 8,021 Operating lease right-of-use assets 18,898 Intangible assets 664,000 Other assets 7,166 Total identifiable assets acquired 750,118 Liabilities assumed: Accounts payable and accrued compensation 43,986 Operating lease liabilities 18,898 Income taxes payable, current 5,673 Deferred income taxes 171,023 Other long-term liabilities 12,270 Total identifiable liabilities assumed 251,850 Net identifiable assets acquired 498,268 Goodwill 872,363 Net assets acquired $ 1,370,631 Table 6.3: Attain Valuation Allocation of Assets and Liabilities (in thousands) Consideration paid: Cash consideration paid, net of cash acquired $ 419,097 Assets acquired: Accounts receivable - billed, billable and unbilled 39,375 Prepaid expenses and other current assets 926 Operating lease right-of-use assets 24,960 Intangible assets 105,000 Other assets 74 Total identifiable assets acquired 170,335 Liabilities assumed: Accounts payable and other liabilities 28,863 Operating lease liabilities, less current portion 26,401 Total identifiable liabilities assumed 55,264 Net identifiable assets acquired 115,071 Goodwill 304,026 Net assets acquired $ 419,097 |
Schedule of Acquired Finite-Lived Intangible Assets Weighted Average Remaining Lives | Table 6.2: VES Intangible Asset Values and Useful Lives Estimated Fair Value (in thousands) Customer contracts and relationships $ 580,000 Provider network 57,000 Technology-based intangible assets 27,000 Total intangible assets $ 664,000 |
Goodwill And Intangiable Asse_2
Goodwill And Intangiable Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Changes In The Carrying Amount Of Goodwill | Table 7.1: Changes in Goodwill by Segment U.S. Federal Services U.S. Services Outside the U.S. Total (in thousands) Balance as of September 30, 2021 $ 1,549,921 $ 164,472 $ 60,013 $ 1,774,406 Acquisitions 9,942 — 3,739 13,681 Foreign currency translation — — (8,672) (8,672) Balance as of September 30, 2022 1,559,863 164,472 55,080 1,779,415 Divestitures — — (3,172) (3,172) Foreign currency translation — — 2,972 2,972 Balance as of September 30, 2023 $ 1,559,863 $ 164,472 $ 54,880 $ 1,779,215 |
Schedule of Finite-Lived Intangible Assets | Table 7.2: Details of Intangible Assets, Net As of September 30, 2023 2022 Cost Accumulated Intangible Cost Accumulated Intangible (in thousands) Customer contracts and relationships $ 891,511 $ 251,868 $ 639,643 $ 905,285 $ 175,349 $ 729,936 VES Provider network 57,000 11,083 45,917 57,000 6,333 50,667 Technology-based intangible assets 31,572 13,484 18,088 31,984 7,683 24,301 Trademarks and trade names 4,471 4,471 — 4,466 4,466 — Total $ 984,554 $ 280,906 $ 703,648 $ 998,735 $ 193,831 $ 804,904 Table 7.3: Details of Weighted Average Remaining Lives As of September 30, 2023 Customer contracts and relationships 8.9 years VES Provider network 9.7 years Technology-based intangible assets 3.0 years Weighted Average Remaining Life 8.8 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Table 7.4: Details of Future Amortization Expense of Intangible Assets, Net As of September 30, 2023 (in thousands) Year ended September 30, 2024 $ 87,877 Year ended September 30, 2025 85,828 Year ended September 30, 2026 85,211 Year ended September 30, 2027 79,164 Year ended September 30, 2028 78,928 Thereafter 286,640 Total $ 703,648 |
Debt And Derivatives (Tables)
Debt And Derivatives (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Table 8.1: Details of Debt As of September 30, 2023 2022 (in thousands) Term Loan A, due 2026 $ 909,375 $ 971,250 Term Loan B, due 2028 344,934 395,000 Subsidiary loan agreements 3,220 64 Funded Debt 1,257,529 1,366,314 Less: Unamortized debt-issuance costs and discounts (7,536) (10,373) Total debt 1,249,993 1,355,941 Less: Current portion of long-term debt (86,844) (63,458) Long-term debt $ 1,163,149 $ 1,292,483 |
Schedule of Maturities of Long-term Debt | Table 8.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) Year ended September 30, 2024 $ 89,205 Year ended September 30, 2025 92,860 Year ended September 30, 2026 740,985 Year ended September 30, 2027 3,485 Year ended September 30, 2028 330,994 Total Payments $ 1,257,529 |
Schedule of Losses on Derivatives | Table 8.3: Gains/(Losses) on Derivatives For the Year Ended September 30, 2023 2022 2021 (in thousands) Gain/(loss) recognized in AOCI on derivatives, net of tax $ 8,558 $ 23,004 $ (811) Amounts reclassified to earnings from accumulated other comprehensive income (8,837) 447 508 Net current period other comprehensive income $ (279) $ 23,451 $ (303) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities | Table 9.1: Fair Value Measurements As of September 30, 2023 Level 1 Level 2 Level 3 Balance (in thousands) Assets: Deferred compensation assets - Rabbi Trust $ 26,445 $ — $ — $ 26,445 Interest rate swaps - $650 million notional value — 31,027 — 31,027 Total assets $ 26,445 $ 31,027 $ — $ 57,472 Liabilities: Contingent consideration $ — $ — $ 9,903 $ 9,903 Total liabilities $ — $ — $ 9,903 $ 9,903 The following table presents a reconciliation of the contingent consideration, which is measured and recorded at fair value on a recurring basis using Level 3 inputs: Table 9.2: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Contingent Consideration (in thousands) Balance as of September 30, 2022 $ 16,236 Adjustments to fair value recorded in the current year 2,873 Cash payments (9,431) Foreign currency translation 225 Balance as of September 30, 2023 $ 9,903 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Lease Costs | Table 10.1: Details of Lease Costs For the Year Ended September 30, 2023 2022 2021 (in thousands) Operating lease cost $ 76,630 $ 90,423 $ 111,246 Short-term lease cost 7,729 11,642 7,044 Variable lease cost 12,417 12,032 11,124 Total operating lease costs $ 96,776 $ 114,097 $ 129,414 |
Future Minimum Lease Payments | Table 10.2: Future Minimum Lease Payments Under Non-cancelable Operating Leases Office Space Equipment Total (in thousands) Year ended September 30, 2024 $ 57,829 $ 490 $ 58,319 Year ended September 30, 2025 52,637 242 52,879 Year ended September 30, 2026 34,667 30 34,697 Year ended September 30, 2027 28,043 9 28,052 Year ended September 30, 2028 20,640 5 20,645 Thereafter 6,193 — 6,193 Total minimum lease payments 200,009 776 200,785 Less: Imputed interest (21,483) (83) (21,566) Total lease liabilities $ 178,526 $ 693 $ 179,219 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Table 11.1: Components of Provision for Income Taxes For the Year Ended September 30, 2023 2022 2021 (in thousands) Current provision/(benefit): Federal $ 34,033 $ 45,042 $ 62,062 State and local 12,332 15,371 20,077 Foreign 584 2,653 16,919 Total current provision for income taxes 46,949 63,066 99,058 Deferred tax expense/(benefit): Federal (1,495) 7,107 (2,527) State and local (673) 2,130 (590) Foreign 3,720 967 (3,460) Total deferred tax expense/(benefit) 1,552 10,204 (6,577) Provision for income taxes $ 48,501 $ 73,270 $ 92,481 |
Schedule of Income before Income Tax, Domestic and Foreign | Table 11.2: Components of Income before Provision for Income Taxes by Country For the Year Ended September 30, 2023 2022 2021 (in thousands) Domestic $ 198,115 $ 274,641 $ 339,647 Foreign 12,178 2,457 44,034 Income before provision for income taxes $ 210,293 $ 277,098 $ 383,681 |
Schedule of Effective Income Tax Rate Reconciliation | Table 11.3: Reconciliation of Tax Expense at Statutory Rate to Actual Tax Expense For the Year Ended September 30, 2023 2022 2021 (dollars in thousands) Tax expense at statutory rate $ 44,162 $ 58,190 $ 80,573 Increase/(decrease) due to: State income taxes, net of federal benefit 11,501 14,244 18,350 Foreign taxation rate differentials (590) (709) 4,212 Non-deductible expenses 2,889 882 2,254 Global intangible low taxed income 2,274 — — Valuation allowance - foreign jurisdictions 2,010 4,875 2,285 Tax credits (6,645) (5,239) (5,072) Excess tax expense/(benefits) from stock-based compensation (1,399) 1,143 (6,008) Other (5,701) (116) (4,113) Income tax expense $ 48,501 $ 73,270 $ 92,481 U.S. Federal Statutory tax rate 21.0 % 21.0 % 21.0 % Effective tax rate 23.1 % 26.4 % 24.1 % |
Schedule of Deferred Tax Assets and Liabilities | Table 11.4: Components of Deferred Tax Assets and Liabilities As of September 30, 2023 2022 (in thousands) Deferred tax assets/(liabilities): Costs deductible in future periods $ 37,036 $ 36,604 Deferred revenue 8,712 7,273 Stock compensation 6,212 4,918 Capital loss carryforward 2,391 2,391 Net operating loss carryforwards 33,278 6,666 Amortization of goodwill and intangibles (189,316) (198,903) Capitalized software (28,246) (15,445) Accounts receivable - unbilled (7,963) (12,087) Property and equipment (3,437) (2,577) Prepaid expenses (10,906) (11,522) Financial instruments (8,158) (8,261) Valuation allowance (34,643) (8,075) Other (6,399) (2,111) Net deferred tax liability $ (201,439) $ (201,129) 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. Table 11.5: Deferred Tax Assets and Liabilities By Jurisdiction Positions As of September 30, 2023 2022 (in thousands) Total of tax jurisdictions with net deferred tax assets $ 2,459 $ 4,970 Total of tax jurisdictions with net deferred tax liabilities (203,898) (206,099) Net deferred tax liabilities $ (201,439) $ (201,129) |
Summary of Income Tax Contingencies | Table 11.6: Reconciliation of the Beginning and Ending Amounts of Potential Tax Benefits For the Year Ended September 30, 2023 2022 2021 (in thousands) Balance at beginning of year $ 8,676 $ 12,642 $ 1,798 Additions for acquired unrecognized tax benefits — — 11,244 Decreases for lapse of statute of limitations (2,051) (1,412) — Decreases for settlements with taxing authorities (692) (4,785) — Increases for tax positions taken in current year 300 2,231 300 Decreases for tax positions taken in current year — — (700) Balance at end of year $ 6,233 $ 8,676 $ 12,642 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the Company's RSU activity | Table 12: Restricted Stock Units and Performance Based Stock Units Restricted Stock Units Performance Stock Units Total Weighted Average Grant Date Fair Value Non-vested outstanding units as of September 30, 2022 552,643 188,315 740,958 $ 77.08 Granted 353,687 140,693 494,380 70.38 Vested (337,684) (61,791) (399,475) 71.87 Forfeited (87,512) (96,459) (183,971) 76.13 Non-vested outstanding units as of September 30, 2023 481,134 170,758 651,892 $ 75.46 |
Cash And Cash Equivalents And_2
Cash And Cash Equivalents And Restricted Cash (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Table 13.1: Details of Cash and Cash Equivalents and Restricted Cash As of September 30, 2023 2022 (in thousands) Cash and cash equivalents $ 65,405 $ 40,658 Restricted cash 56,686 96,137 Cash, cash equivalents, and restricted cash $ 122,091 $ 136,795 Restricted cash is recorded within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets. At September 30, 2022, this balance includes $60.7 million of funds received from a customer which had previously been sold under our Receivables Purchase Agreement; this is offset by a corresponding liability in "Other current liabilities." No similar arrangements existed at September 30, 2023. The remaining balance includes funds held in trust on behalf of certain clients, offset with a corresponding liability in "Other current liabilities" and certain collateral obligations on contracts. |
Restrictions on Cash and Cash Equivalents | Table 13.1: Details of Cash and Cash Equivalents and Restricted Cash As of September 30, 2023 2022 (in thousands) Cash and cash equivalents $ 65,405 $ 40,658 Restricted cash 56,686 96,137 Cash, cash equivalents, and restricted cash $ 122,091 $ 136,795 Restricted cash is recorded within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets. At September 30, 2022, this balance includes $60.7 million of funds received from a customer which had previously been sold under our Receivables Purchase Agreement; this is offset by a corresponding liability in "Other current liabilities." No similar arrangements existed at September 30, 2023. The remaining balance includes funds held in trust on behalf of certain clients, offset with a corresponding liability in "Other current liabilities" and certain collateral obligations on contracts. |
Supplementary Cash Flow Information | Table 13.2: Supplemental Disclosures of Cash Flow Information For the Year Ended September 30, 2023 2022 2021 (in thousands) Interest payments $ 81,098 $ 43,094 $ 14,539 Income tax payments $ 61,050 $ 76,038 $ 99,899 |
Other Balance Sheet Components
Other Balance Sheet Components (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Details of Accounts Receivable | Table 14.1: Details of Accounts Receivable, Net As of September 30, 2023 2022 (in thousands) Billed and billable receivables $ 692,707 $ 723,979 Unbilled receivables 137,885 91,404 Allowance for credit losses (3,719) (8,273) Accounts receivable, net $ 826,873 $ 807,110 |
Schedule of Accounts Receivable | Table 14.2: Changes in Allowance for Credit Losses For the Year Ended September 30, 2023 2022 2021 (in thousands) Balance at beginning of period $ 8,273 $ 8,044 $ 6,051 Provision for estimated credit losses 7,097 6,799 11,038 Write-offs, net of recoveries (11,651) (6,570) (9,045) Balance at end of period $ 3,719 $ 8,273 $ 8,044 |
Property, Plant and Equipment | Table 14.3: Details of Property and Equipment, Net As of September 30, 2023 2022 (in thousands) Office furniture and equipment $ 134,910 $ 209,258 Leasehold improvements 78,520 78,727 Property and equipment, at cost 213,430 287,985 Accumulated depreciation (174,599) (235,727) Property and equipment, net $ 38,831 $ 52,258 |
Schedule of Capitalized Software Development Cost | A summary of activities related to capitalized software costs is shown below: Table 14.4: Details of Capitalized Software, Net As of September 30, 2023 2022 (in thousands) Capitalized software $ 195,813 $ 161,353 Accumulated amortization (88,002) (102,613) Capitalized software, net $ 107,811 $ 58,740 |
Schedule of Deferred Contract Cost | A summary of activities related to deferred contract costs is shown below: Table 14.5: Details of Deferred Contracts Costs, Net As of September 30, 2023 2022 (in thousands) Deferred contract costs $ 77,597 $ 76,498 Accumulated amortization (32,225) (28,766) Total deferred contract costs, net $ 45,372 $ 47,732 |
Schedule of Changes in Accumulated Other Comprehensive Loss | The following table shows changes in accumulated other comprehensive loss. Table 14.6: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized (loss)/gain on derivatives, net of tax Total (in thousands) Balance as of September 30, 2020 $ (42,638) $ — $ (42,638) Other comprehensive income/(loss) before reclassifications 3,033 (811) 2,222 Amounts reclassified from accumulated other comprehensive income/(loss) — 508 508 Net current period other comprehensive income/(loss) 3,033 (303) 2,730 Balance as of September 30, 2021 (39,605) (303) (39,908) Other comprehensive income/(loss) before reclassifications (17,504) 23,004 5,500 Amounts reclassified from accumulated other comprehensive income/(loss) — 447 447 Net current period other comprehensive income/(loss) (17,504) 23,451 5,947 Balance as of September 30, 2022 (57,109) 23,148 (33,961) Other comprehensive income/(loss) before reclassifications 6,509 8,558 15,067 Amounts reclassified from accumulated other comprehensive income/(loss) 116 (8,837) (8,721) Net current period other comprehensive income/(loss) 6,625 (279) 6,346 Balance as of September 30, 2023 $ (50,484) $ 22,869 $ (27,615) |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | May 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||||
Capitalized software, net | $ 107,811 | $ 107,811 | $ 58,740 | |
Impairment charges | $ 2,900 | |||
Operating lease, weighted average discount rate, percent | 5.50% | 5.50% | ||
Unrecognized compensation costs, period for recognition | 4 years | |||
Revenue Benchmark | Customer Concentration Risk | Outside the U.S. | ||||
Property, Plant and Equipment [Line Items] | ||||
Concentration risk | 48% | |||
Restricted Stock Units | Share-based Payment Arrangement, Tranche One | ||||
Property, Plant and Equipment [Line Items] | ||||
Vesting period | 1 year | |||
Restricted Stock Units | Share-based Payment Arrangement, Tranche Two | ||||
Property, Plant and Equipment [Line Items] | ||||
Vesting period | 5 years | |||
Performance Stock Units | ||||
Property, Plant and Equipment [Line Items] | ||||
Vesting period | 3 years | |||
Unrecognized compensation costs, period for recognition | 3 years | |||
Maximum | Restricted Stock Units | ||||
Property, Plant and Equipment [Line Items] | ||||
Vesting period | 5 years | |||
Minimum | Restricted Stock Units | ||||
Property, Plant and Equipment [Line Items] | ||||
Vesting period | 3 years | |||
Office furniture | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 7 years | 7 years | ||
Software and Software Development Costs | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 10 years | 10 years | ||
Software and Software Development Costs | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, useful life | 3 years | 3 years | ||
Technology Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Technology assets | $ 27,000 | |||
Intangible assets, estimated useful life | 12 years | |||
Additional annual amortization expense following change in estimated useful life | $ 3,800 | |||
Change in estimated useful life, increase (decrease) in diluted earnings per share (in dollars per share) | $ (0.04) | |||
Capitalized software, net | $ 23,000 |
Business Segments - Financial i
Business Segments - Financial information by segment (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Aug. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Financial information for each of the Company's business segments | |||||
Number of operating segments | segment | 3 | ||||
Revenue: | |||||
Revenue | $ 4,904,728 | $ 4,631,018 | $ 4,254,485 | ||
Gross profit: | |||||
Gross profit | $ 1,028,608 | $ 939,810 | $ 946,975 | ||
Gross profit (as a percent) | 21% | 20.30% | 22.30% | ||
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 639,223 | $ 534,493 | $ 494,088 | ||
Selling, general, and administrative expense (as a percent) | 13% | 11.50% | 11.60% | ||
Divestiture related charges | $ 883 | $ 0 | $ 0 | ||
Impairment charges | $ 2,900 | ||||
Operating income/(loss): | |||||
Operating income | $ 294,794 | $ 325,898 | $ 408,530 | ||
Operating income (as a percent) | 6% | 7% | 9.60% | ||
Amortization of intangible assets | $ (94,591) | $ (90,465) | $ (44,357) | ||
Divestiture related charges | 883 | 0 | 0 | ||
Gain on sale of land and building | 0 | 11,046 | 0 | ||
Depreciation and amortization: | |||||
Depreciation and amortization | $ 54,725 | $ 42,330 | $ 46,361 | ||
Depreciation and amortization (as a percent) | 1.10% | 0.90% | 1.10% | ||
Land and Building | |||||
Operating income/(loss): | |||||
Gain on sale of land and building | $ 11,000 | ||||
Segment Reconciling Items | |||||
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 29,973 | $ (3,454) | $ 10,746 | ||
Divestiture related charges | 3,751 | 0 | 0 | ||
Operating income/(loss): | |||||
Amortization of intangible assets | (94,591) | (90,465) | (44,357) | ||
Divestiture related charges | 3,751 | 0 | 0 | ||
Gain on sale of land and building | 0 | 11,046 | 0 | ||
Other | (29,973) | 3,454 | (10,746) | ||
Segment Reconciling Items | MOVEit | |||||
Operating income/(loss): | |||||
Other | (29,300) | ||||
U.S. Federal Services | Operating Segments | |||||
Revenue: | |||||
Revenue | 2,403,606 | 2,259,744 | 1,893,284 | ||
Gross profit: | |||||
Gross profit | $ 557,886 | $ 519,440 | $ 432,551 | ||
Gross profit (as a percent) | 23.20% | 23% | 22.80% | ||
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 308,197 | $ 284,509 | $ 243,485 | ||
Selling, general, and administrative expense (as a percent) | 12.80% | 12.60% | 12.90% | ||
Operating income/(loss): | |||||
Operating income | $ 249,689 | $ 234,931 | $ 189,066 | ||
Operating income (as a percent) | 10.40% | 10.40% | 10% | ||
Depreciation and amortization: | |||||
Depreciation and amortization | $ 18,336 | $ 12,332 | $ 12,986 | ||
Depreciation and amortization (as a percent) | 0.80% | 0.50% | 0.70% | ||
U.S. Services | Operating Segments | |||||
Revenue: | |||||
Revenue | $ 1,812,069 | $ 1,607,612 | $ 1,662,110 | ||
Gross profit: | |||||
Gross profit | $ 377,541 | $ 343,004 | $ 408,050 | ||
Gross profit (as a percent) | 20.80% | 21.30% | 24.60% | ||
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 194,991 | $ 160,902 | $ 153,609 | ||
Selling, general, and administrative expense (as a percent) | 10.80% | 10% | 9.20% | ||
Operating income/(loss): | |||||
Operating income | $ 182,550 | $ 182,102 | $ 254,441 | ||
Operating income (as a percent) | 10.10% | 11.30% | 15.30% | ||
Depreciation and amortization: | |||||
Depreciation and amortization | $ 22,674 | $ 16,528 | $ 20,350 | ||
Depreciation and amortization (as a percent) | 1.30% | 1% | 1.20% | ||
Outside the U.S. | Operating Segments | |||||
Revenue: | |||||
Revenue | $ 689,053 | $ 763,662 | $ 699,091 | ||
Gross profit: | |||||
Gross profit | $ 93,181 | $ 77,366 | $ 106,374 | ||
Gross profit (as a percent) | 13.50% | 10.10% | 15.20% | ||
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 102,311 | $ 92,536 | $ 86,248 | ||
Selling, general, and administrative expense (as a percent) | 14.80% | 12.10% | 12.30% | ||
Operating income/(loss): | |||||
Operating income | $ (9,130) | $ (15,170) | $ 20,126 | ||
Operating income (as a percent) | (1.30%) | (2.00%) | 2.90% | ||
Depreciation and amortization: | |||||
Depreciation and amortization | $ 13,715 | $ 13,470 | $ 13,025 | ||
Depreciation and amortization (as a percent) | 2% | 1.80% | 1.90% | ||
Outside the U.S. | Segment Reconciling Items | |||||
Selling, general, and administrative expenses: | |||||
Divestiture related charges | $ (900) | ||||
Operating income/(loss): | |||||
Divestiture related charges | $ (900) |
Business Segments - Identifiabl
Business Segments - Identifiable assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Financial information for each of the Company's business segments | ||
Assets | $ 3,985,797 | $ 3,992,714 |
Corporate | ||
Financial information for each of the Company's business segments | ||
Assets | 210,404 | 120,066 |
U.S. Federal Services | Operating Segments | ||
Financial information for each of the Company's business segments | ||
Assets | 2,716,367 | 2,858,662 |
U.S. Services | Operating Segments | ||
Financial information for each of the Company's business segments | ||
Assets | 780,737 | 736,970 |
Outside the U.S. | Operating Segments | ||
Financial information for each of the Company's business segments | ||
Assets | $ 278,289 | $ 277,016 |
Business Segments - Schedule of
Business Segments - Schedule of Long-Lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 353,490 | $ 280,933 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 313,830 | 238,523 |
Outside the U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 39,660 | $ 42,410 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4,904,728 | $ 4,631,018 | $ 4,254,485 |
U. S. federal government agencies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,344,863 | $ 2,189,303 | $ 1,805,131 |
U. S. federal government agencies | Revenue Benchmark | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 47.80% | 47.30% | 42.40% |
U.S. state government agencies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,800,814 | $ 1,605,457 | $ 1,654,555 |
U.S. state government agencies | Revenue Benchmark | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 36.70% | 34.70% | 38.90% |
International government agencies | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 663,044 | $ 722,192 | $ 663,180 |
International government agencies | Revenue Benchmark | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 13.50% | 15.60% | 15.60% |
Other, including local municipalities and commercial customers | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 96,007 | $ 114,066 | $ 131,619 |
Other, including local municipalities and commercial customers | Revenue Benchmark | Customer Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 2% | 2.50% | 3.10% |
Performance-based | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,425,597 | $ 2,091,608 | $ 1,416,562 |
Performance-based | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 49.50% | 45.20% | 33.30% |
Cost-plus | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,238,574 | $ 1,248,759 | $ 1,237,995 |
Cost-plus | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 25.30% | 27% | 29.10% |
Fixed price | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 717,167 | $ 627,402 | $ 553,645 |
Fixed price | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 14.60% | 13.50% | 13% |
Time and materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 523,390 | $ 663,249 | $ 1,046,283 |
Time and materials | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 10.70% | 14.30% | 24.60% |
Program Operations | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,607,263 | $ 2,596,801 | $ 2,755,820 |
Program Operations | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 53.20% | 56.10% | 64.80% |
Clinical Services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,486,040 | $ 1,176,081 | $ 699,424 |
Clinical Services | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 30.30% | 25.40% | 16.40% |
Employment & Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 520,981 | $ 551,755 | $ 463,695 |
Employment & Other | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 10.60% | 11.90% | 10.90% |
Technology Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 290,444 | $ 306,381 | $ 335,546 |
Technology Solutions | Revenue Benchmark | Contract Concentration Risk | |||
Disaggregation of Revenue [Line Items] | |||
Revenue in % | 5.90% | 6.60% | 7.90% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, revenue recognized | $ 81,500 | $ 103,200 | |
Revenue | 4,904,728 | 4,631,018 | $ 4,254,485 |
Performance-based | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,425,597 | 2,091,608 | $ 1,416,562 |
Performance-based | Future Outcomes | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 120,600 | 142,400 | |
Estimate of fees upon target | 53,900 | 55,400 | |
Unbilled receivables | |||
Disaggregation of Revenue [Line Items] | |||
Unbilled contracts receivable | $ 20,700 | $ 13,100 |
Revenue Recognition - Effect of
Revenue Recognition - Effect of Changes in Contract Estimates (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Benefit to/(reduction of) revenue recognized due to changes in contract estimates | $ 4,904,728 | $ 4,631,018 | $ 4,254,485 |
Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates (in dollars per share) | $ 2.63 | $ 3.29 | $ 4.67 |
Change in contract estimates | |||
Disaggregation of Revenue [Line Items] | |||
Benefit to/(reduction of) revenue recognized due to changes in contract estimates | $ (13,346) | $ (2,500) | |
Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates (in dollars per share) | $ (0.16) | $ (0.03) |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 70% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Basic weighted average shares outstanding (in shares) | 61,125 | 61,774 | 62,072 |
Dilutive effect of unvested RSUs and PSUs (in shares) | 325 | 195 | 293 |
Denominator for diluted earnings per share (in shares) | 61,450 | 61,969 | 62,365 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 231 | 444 | 55 |
Business Combinations and Div_3
Business Combinations and Divestitures - Narrative (Details) $ in Thousands, £ in Millions, $ in Millions | 12 Months Ended | |||||||||||||
Mar. 06, 2023 USD ($) | Jun. 01, 2022 USD ($) | Jun. 01, 2022 AUD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2022 GBP (£) | Sep. 14, 2021 USD ($) | Sep. 14, 2021 GBP (£) | May 28, 2021 USD ($) asset | Mar. 01, 2021 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 30, 2023 USD ($) | Oct. 06, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||
Cash consideration paid, net of cash acquired | $ 0 | $ 14,295 | $ 1,798,915 | |||||||||||
Number of intangible assets acquired | asset | 3 | |||||||||||||
Useful economic life | 8 years 9 months 18 days | |||||||||||||
Payments of contingent consideration | $ 9,431 | 1,369 | 0 | |||||||||||
Goodwill | $ 1,779,215 | $ 1,779,415 | $ 1,774,406 | |||||||||||
Disposal Group Not Discontinued Operation Gain Loss On Disposal Statement Of Income Extensible List Not Disclosed Flag | pre-tax loss | |||||||||||||
SWEDEN | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total fair value of consideration | $ 400 | |||||||||||||
UNITED KINGDOM | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Pre-tax loss on sale of practice | $ 600 | |||||||||||||
Customer contracts and relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Useful economic life | 8 years 10 months 24 days | |||||||||||||
Technology-based intangible assets | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Useful economic life | 3 years | |||||||||||||
VES Group, Inc. | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||
Cash consideration paid, net of cash acquired | $ 1,370,000 | |||||||||||||
Estimated straight-line useful life (in years) | 12 years | |||||||||||||
Liability for uncertainty in income taxes | $ 12,300 | |||||||||||||
Indemnification assets | $ 800 | |||||||||||||
Cash consideration, net of cash acquired | 1,370,631 | |||||||||||||
Intangible assets | 664,000 | |||||||||||||
Goodwill | 872,363 | |||||||||||||
VES Group, Inc. | Technology-based intangible assets | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Additional annual amortization expense following change in estimated useful life | 3,800 | |||||||||||||
VES Group, Inc. | Indemnification Asset On Uncertain Tax Positions | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Indemnification assets | $ 7,200 | |||||||||||||
Attain | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||
Cash consideration, net of cash acquired | $ 419,097 | |||||||||||||
Intangible assets | 105,000 | |||||||||||||
Goodwill | $ 304,026 | |||||||||||||
Attain | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Useful economic life | 10 years | |||||||||||||
Aidvantage | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Contingent consideration | 7,500 | $ 18,500 | ||||||||||||
Payments of contingent consideration | $ 10,800 | |||||||||||||
Aidvantage | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Contingent consideration | 65,000 | |||||||||||||
Aidvantage | Customer Relationships | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Estimated straight-line useful life (in years) | 27 months | |||||||||||||
Intangible assets | $ 16,700 | |||||||||||||
Stirling Institute of Australia Pty Ltd | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||
Cash consideration paid, net of cash acquired | $ 4,100 | $ 5.7 | ||||||||||||
Intangible assets | 1,800 | |||||||||||||
Goodwill | $ 2,300 | |||||||||||||
BZ Bodies Limited | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||
Cash consideration paid, net of cash acquired | $ 2,500 | £ 1.9 | ||||||||||||
Intangible assets | 1,300 | |||||||||||||
Goodwill | $ 1,400 | |||||||||||||
Connect Assist | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percentage of voting equity interests acquired | 100% | |||||||||||||
Cash consideration paid, net of cash acquired | $ 20,800 | £ 15.5 | ||||||||||||
Intangible assets | 7,700 | |||||||||||||
Goodwill | $ 11,100 |
Business Combinations and Div_4
Business Combinations and Divestitures - Schedule of Asset Acquired and Liabilities Assumed, VES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Allocation of Assets and Liabilities | |||
Goodwill | $ 1,779,215 | $ 1,779,415 | $ 1,774,406 |
VES Group, Inc. | |||
Allocation of Assets and Liabilities | |||
Cash consideration, net of cash acquired | 1,370,631 | ||
Accounts receivable - billed, billable and unbilled | 44,078 | ||
Prepaid expenses and other current assets | 7,955 | ||
Property and equipment, net | 8,021 | ||
Operating lease right-of-use assets | 18,898 | ||
Intangible assets | 664,000 | ||
Other assets | 7,166 | ||
Total identifiable assets acquired | 750,118 | ||
Accounts payable and accrued compensation | 43,986 | ||
Operating lease liabilities | 18,898 | ||
Income taxes payable, current | 5,673 | ||
Deferred income taxes | 171,023 | ||
Other long-term liabilities | 12,270 | ||
Total identifiable liabilities assumed | 251,850 | ||
Net identifiable assets acquired | 498,268 | ||
Goodwill | 872,363 | ||
Net assets acquired | $ 1,370,631 |
Business Combinations and Div_5
Business Combinations and Divestitures - Schedule of the Valuation of the Intangible Assets Acquired (Details) - VES Group, Inc. $ in Thousands | May 28, 2021 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 664,000 |
Customer contracts and relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | 580,000 |
Provider network | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | 57,000 |
Technology-based intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 27,000 |
Business Combinations and Div_6
Business Combinations and Divestitures - Schedule of Asset Acquired and Liabilities Assumed, Attain (Details) - USD ($) $ in Thousands | Mar. 01, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Liabilities assumed: | ||||
Goodwill | $ 1,779,215 | $ 1,779,415 | $ 1,774,406 | |
Attain | ||||
Allocation of Assets and Liabilities | ||||
Cash consideration paid, net of cash acquired | $ 419,097 | |||
Assets acquired: | ||||
Accounts receivable - billed, billable and unbilled | 39,375 | |||
Prepaid expenses and other current assets | 926 | |||
Operating lease right-of-use assets | 24,960 | |||
Intangible assets | 105,000 | |||
Other assets | 74 | |||
Total identifiable assets acquired | 170,335 | |||
Liabilities assumed: | ||||
Accounts payable and accrued compensation | 28,863 | |||
Operating lease liabilities | 26,401 | |||
Total identifiable liabilities assumed | 55,264 | |||
Net identifiable assets acquired | 115,071 | |||
Goodwill | 304,026 | |||
Net assets acquired | $ 419,097 |
Goodwill And Intangiable Asse_3
Goodwill And Intangiable Assets - Schedule of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | $ 1,779,415 | $ 1,774,406 | |
Acquisitions | 13,681 | ||
Divestitures | (3,172) | ||
Foreign currency translation | 2,972 | (8,672) | |
Balance at the end of the period | 1,779,215 | 1,779,415 | $ 1,774,406 |
Goodwill, impairment charges | 0 | 0 | 0 |
U.S. Federal Services | |||
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | 1,559,863 | 1,549,921 | |
Acquisitions | 9,942 | ||
Divestitures | 0 | ||
Foreign currency translation | 0 | 0 | |
Balance at the end of the period | 1,559,863 | 1,559,863 | 1,549,921 |
U.S. Services | |||
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | 164,472 | 164,472 | |
Acquisitions | 0 | ||
Divestitures | 0 | ||
Foreign currency translation | 0 | 0 | |
Balance at the end of the period | 164,472 | 164,472 | 164,472 |
Outside the U.S. | |||
Goodwill [Roll Forward] | |||
Balance at the beginning of the period | 55,080 | 60,013 | |
Acquisitions | 3,739 | ||
Divestitures | (3,172) | ||
Foreign currency translation | 2,972 | (8,672) | |
Balance at the end of the period | $ 54,880 | $ 55,080 | $ 60,013 |
Goodwill And Intangiable Asse_4
Goodwill And Intangiable Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 984,554 | $ 998,735 |
Accumulated Amortization | 280,906 | 193,831 |
Intangible Assets, Net | 703,648 | 804,904 |
Customer contracts and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 891,511 | 905,285 |
Accumulated Amortization | 251,868 | 175,349 |
Intangible Assets, Net | 639,643 | 729,936 |
VES Provider network | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 57,000 | 57,000 |
Accumulated Amortization | 11,083 | 6,333 |
Intangible Assets, Net | 45,917 | 50,667 |
Technology-based intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 31,572 | 31,984 |
Accumulated Amortization | 13,484 | 7,683 |
Intangible Assets, Net | 18,088 | 24,301 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,471 | 4,466 |
Accumulated Amortization | 4,471 | 4,466 |
Intangible Assets, Net | $ 0 | $ 0 |
Goodwill And Intangiable Asse_5
Goodwill And Intangiable Assets - Schedule of Weighted Average Remaining lives (Details) | Sep. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Life | 8 years 9 months 18 days |
Customer contracts and relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Life | 8 years 10 months 24 days |
VES Provider network | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Life | 9 years 8 months 12 days |
Technology-based intangible assets | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Average Remaining Life | 3 years |
Goodwill And Intangiable Asse_6
Goodwill And Intangiable Assets - Estimated Future Amortization Expense For Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | ||
Year ended September 30, 2024 | $ 87,877 | |
Year ended September 30, 2025 | 85,828 | |
Year ended September 30, 2026 | 85,211 | |
Year ended September 30, 2027 | 79,164 | |
Year ended September 30, 2028 | 78,928 | |
Thereafter | 286,640 | |
Intangible Assets, Net | $ 703,648 | $ 804,904 |
Debt And Derivatives - Schedule
Debt And Derivatives - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument [Line Items] | ||
Term loans | $ 1,257,529 | |
Funded Debt | 1,257,529 | $ 1,366,314 |
Less: Unamortized debt-issuance costs and discounts | (7,536) | (10,373) |
Total debt | 1,249,993 | 1,355,941 |
Less: Current portion of long-term debt | (86,844) | (63,458) |
Long-term debt | 1,163,149 | 1,292,483 |
Secured Debt | Term Loan A, due 2026 | ||
Debt Instrument [Line Items] | ||
Term loans | 909,375 | 971,250 |
Secured Debt | Term Loan B, due 2028 | ||
Debt Instrument [Line Items] | ||
Term loans | 344,934 | 395,000 |
Subsidiary loan agreements | ||
Debt Instrument [Line Items] | ||
Subsidiary loan agreements | $ 3,220 | $ 64 |
Debt And Derivatives - Narrativ
Debt And Derivatives - Narrative (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||
Annual effective interest rate | 5.97% | |
Minimum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.125% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Commitment fee percentage | 0.30% | |
Other Assets | ||
Debt Instrument [Line Items] | ||
Fair value of derivative instrument | $ 31,000,000 | $ 31,400,000 |
Term Loan A and Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1% | |
Term Loan A and Revolving Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Maximum amount netted against funded debt | $ (75,000,000) | |
Net total leverage ratio maximum | 400% | |
Covenant, interest coverage ratio, minimum | 300% | |
Net total leverage ratio | 2.19 | |
Covenant, interest coverage ratio | 628% | |
Secured Debt | SOFR | ||
Debt Instrument [Line Items] | ||
Floor interest rate | 0.50% | |
Secured Debt | Term Loan A, due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 1,100,000,000 | |
Secured Debt | Term Loan A, due 2026 | Interest Rate Swap 1 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 500,000,000 | |
Derivative, fixed interest rate | 2.31% | |
Secured Debt | Term Loan A, due 2026 | Interest Rate Swap 2 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 150,000,000 | |
Derivative asset | $ 150,000,000 | |
Derivative, fixed interest rate | 4.38% | |
Secured Debt | Term Loan B, due 2028 | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 400,000,000 | |
Secured Debt | Term Loan B, due 2028 | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2% | |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 600,000,000 |
Debt And Derivatives - Schedu_2
Debt And Derivatives - Schedule of Repayments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Year ended September 30, 2024 | $ 89,205 |
Year ended September 30, 2025 | 92,860 |
Year ended September 30, 2026 | 740,985 |
Year ended September 30, 2027 | 3,485 |
Year ended September 30, 2028 | 330,994 |
Total Payments | $ 1,257,529 |
Debt And Derivatives - Schedu_3
Debt And Derivatives - Schedule of Losses on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||
Gain/(loss) recognized in AOCI on derivatives, net of tax | $ 15,067 | $ 5,500 | $ 2,222 |
Amounts reclassified to earnings from accumulated other comprehensive income | (8,721) | 447 | 508 |
Other comprehensive income | 6,346 | 5,947 | 2,730 |
Net unrealized (loss)/gain on derivatives, net of tax | |||
Debt Instrument [Line Items] | |||
Gain/(loss) recognized in AOCI on derivatives, net of tax | 8,558 | 23,004 | (811) |
Amounts reclassified to earnings from accumulated other comprehensive income | (8,837) | 447 | 508 |
Other comprehensive income | $ (279) | $ 23,451 | $ (303) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Amortization of intangible assets | Amortization of intangible assets | Amortization of intangible assets |
U.S. Services and Outside the U.S. Services | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Impairment of long-lived assets held-for-use | $ 9.5 | $ 0 | $ 12.5 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Interest Rate Swaps | |
Financial information for each of the Company's business segments | |
Derivative asset, notional value | $ 650,000 |
Fair Value, Recurring | |
Financial information for each of the Company's business segments | |
Total assets | 57,472 |
Contingent consideration | 9,903 |
Total liabilities | 9,903 |
Fair Value, Recurring | Interest Rate Swaps | |
Financial information for each of the Company's business segments | |
Total assets | 31,027 |
Fair Value, Recurring | Deferred compensation assets - Rabbi Trust | |
Financial information for each of the Company's business segments | |
Total assets | 26,445 |
Level 1 | Fair Value, Recurring | |
Financial information for each of the Company's business segments | |
Total assets | 26,445 |
Contingent consideration | 0 |
Total liabilities | 0 |
Level 1 | Fair Value, Recurring | Interest Rate Swaps | |
Financial information for each of the Company's business segments | |
Total assets | 0 |
Level 1 | Fair Value, Recurring | Deferred compensation assets - Rabbi Trust | |
Financial information for each of the Company's business segments | |
Total assets | 26,445 |
Level 2 | Fair Value, Recurring | |
Financial information for each of the Company's business segments | |
Total assets | 31,027 |
Contingent consideration | 0 |
Total liabilities | 0 |
Level 2 | Fair Value, Recurring | Interest Rate Swaps | |
Financial information for each of the Company's business segments | |
Total assets | 31,027 |
Level 2 | Fair Value, Recurring | Deferred compensation assets - Rabbi Trust | |
Financial information for each of the Company's business segments | |
Total assets | 0 |
Level 3 | Fair Value, Recurring | |
Financial information for each of the Company's business segments | |
Total assets | 0 |
Contingent consideration | 9,903 |
Total liabilities | 9,903 |
Level 3 | Fair Value, Recurring | Interest Rate Swaps | |
Financial information for each of the Company's business segments | |
Total assets | 0 |
Level 3 | Fair Value, Recurring | Deferred compensation assets - Rabbi Trust | |
Financial information for each of the Company's business segments | |
Total assets | $ 0 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Contingent Consideration | |
Beginning balance | $ 16,236 |
Adjustments to fair value recorded in the current year | $ 2,873 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) |
Cash payments | $ (9,431) |
Foreign currency translation | $ 225 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Foreign currency translation adjustments |
Ending balance | $ 9,903 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 76,630 | $ 90,423 | $ 111,246 |
Short-term lease cost | 7,729 | 11,642 | 7,044 |
Variable lease cost | 12,417 | 12,032 | 11,124 |
Total operating lease costs | $ 96,776 | $ 114,097 | $ 129,414 |
Leases - Remaining Lease Paymen
Leases - Remaining Lease Payments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Year ended September 30, 2024 | $ 58,319 |
Year ended September 30, 2025 | 52,879 |
Year ended September 30, 2026 | 34,697 |
Year ended September 30, 2027 | 28,052 |
Year ended September 30, 2028 | 20,645 |
Thereafter | 6,193 |
Total minimum lease payments | 200,785 |
Less: Imputed interest | (21,566) |
Total lease liabilities | 179,219 |
Office Space | |
Lessee, Lease, Description [Line Items] | |
Year ended September 30, 2024 | 57,829 |
Year ended September 30, 2025 | 52,637 |
Year ended September 30, 2026 | 34,667 |
Year ended September 30, 2027 | 28,043 |
Year ended September 30, 2028 | 20,640 |
Thereafter | 6,193 |
Total minimum lease payments | 200,009 |
Less: Imputed interest | (21,483) |
Total lease liabilities | 178,526 |
Equipment | |
Lessee, Lease, Description [Line Items] | |
Year ended September 30, 2024 | 490 |
Year ended September 30, 2025 | 242 |
Year ended September 30, 2026 | 30 |
Year ended September 30, 2027 | 9 |
Year ended September 30, 2028 | 5 |
Thereafter | 0 |
Total minimum lease payments | 776 |
Less: Imputed interest | (83) |
Total lease liabilities | $ 693 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | |||
Weighted average remaining lease term | 3 years 10 months 24 days | ||
Cash payment included in the measurement of lease liabilities | $ 77.6 | $ 86.5 | $ 96.9 |
Operating lease liabilities arising from new or remeasured right-of-use assets | $ 109.4 | $ 43.5 | $ 60.2 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current provision/(benefit): | |||
Federal | $ 34,033 | $ 45,042 | $ 62,062 |
State and local | 12,332 | 15,371 | 20,077 |
Foreign | 584 | 2,653 | 16,919 |
Total current provision for income taxes | 46,949 | 63,066 | 99,058 |
Deferred tax expense/(benefit): | |||
Federal | (1,495) | 7,107 | (2,527) |
State and local | (673) | 2,130 | (590) |
Foreign | 3,720 | 967 | (3,460) |
Total deferred tax expense/(benefit) | 1,552 | 10,204 | (6,577) |
Income tax expense | $ 48,501 | $ 73,270 | $ 92,481 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income before income taxes: | |||
Domestic | $ 198,115 | $ 274,641 | $ 339,647 |
Foreign | 12,178 | 2,457 | 44,034 |
Income before income taxes | $ 210,293 | $ 277,098 | $ 383,681 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of actual provision for income taxes and provision for income taxes resulting from the use of federal statutory income tax | |||
Tax expense at statutory rate | $ 44,162 | $ 58,190 | $ 80,573 |
State income taxes, net of federal benefit | 11,501 | 14,244 | 18,350 |
Foreign taxation rate differentials | (590) | (709) | 4,212 |
Non-deductible expenses | 2,889 | 882 | 2,254 |
Global intangible low taxed income | 2,274 | 0 | 0 |
Valuation allowance - foreign jurisdictions | 2,010 | 4,875 | 2,285 |
Tax credits | (6,645) | (5,239) | (5,072) |
Excess tax expense/(benefits) from stock-based compensation | (1,399) | 1,143 | (6,008) |
Other | (5,701) | (116) | (4,113) |
Income tax expense | $ 48,501 | $ 73,270 | $ 92,481 |
U.S Federal Statutory tax rate (as percent) | 21% | 21% | 21% |
Effective tax rate (as percent) | 23.10% | 26.40% | 24.10% |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred tax assets/(liabilities): | ||
Costs deductible in future periods | $ 37,036 | $ 36,604 |
Deferred revenue | 8,712 | 7,273 |
Stock compensation | 6,212 | 4,918 |
Capital loss carryforward | 2,391 | 2,391 |
Net operating loss carryforwards | 33,278 | 6,666 |
Amortization of goodwill and intangibles | (189,316) | (198,903) |
Capitalized software | (28,246) | (15,445) |
Accounts receivable - unbilled | (7,963) | (12,087) |
Property and equipment | (3,437) | (2,577) |
Prepaid expenses | (10,906) | (11,522) |
Financial instruments | (8,158) | (8,261) |
Valuation allowance | (34,643) | (8,075) |
Other | (6,399) | (2,111) |
Net deferred tax liability | $ (201,439) | $ (201,129) |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Total of tax jurisdictions with net deferred tax assets | $ 2,459 | $ 4,970 |
Total of tax jurisdictions with net deferred tax liabilities | (203,898) | (206,099) |
Net deferred tax liability | $ (201,439) | $ (201,129) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net operating loss carryforwards | |||
Cash and cash equivalents | $ 65,405 | $ 40,658 | |
Unrecognized tax benefits that, if recognized, would affect the annual effective income tax rate | 4,900 | 7,300 | |
Interest expense recognized related to unrecognized tax benefits (less than) | 0 | $ 0 | $ 100 |
Foreign Tax Authority | |||
Net operating loss carryforwards | |||
Cash and cash equivalents | $ 31,100 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||
Balance at beginning of year | $ 8,676 | $ 12,642 | $ 1,798 |
Additions for acquired unrecognized tax benefits | 0 | 0 | 11,244 |
Decreases for lapse of statute of limitations | (2,051) | (1,412) | 0 |
Decreases for settlements with taxing authorities | (692) | (4,785) | 0 |
Increases for tax positions taken in current year | 300 | 2,231 | 300 |
Decreases for tax positions taken in current year | 0 | 0 | (700) |
Balance at end of year | $ 6,233 | $ 8,676 | $ 12,642 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2020 | |
Stock-based compensation | ||||
Deferred vested award (in shares) | 286 | |||
Intrinsic value vested | $ 48,700 | |||
Share-based compensation expense | 29,500 | $ 30,500 | $ 28,600 | |
Income tax benefit recognized | 8,100 | $ 6,900 | $ 13,500 | |
Unrecognized compensation cost | $ 42,100 | |||
Unrecognized compensation costs, period for recognition | 4 years | |||
Granted (in dollars per share) | $ 70.38 | |||
Stock repurchase programs, authorized amount | $ 200,000 | |||
Common shares repurchased (in shares) | 1,400 | 100 | ||
Common shares repurchased, cost | $ 0 | $ 96,119 | $ 3,363 | |
Amount remaining available for future stock repurchases | 50,600 | |||
Restricted Stock Units | ||||
Stock-based compensation | ||||
Granted (in dollars per share) | $ 79.75 | $ 76.80 | ||
Total fair value | $ 29,800 | $ 23,500 | $ 28,900 | |
Restricted Stock Units | Member of Board of Directors | ||||
Stock-based compensation | ||||
Vesting period | 1 year | |||
Restricted Stock Units | Minimum | ||||
Stock-based compensation | ||||
Vesting period | 3 years | |||
Restricted Stock Units | Maximum | ||||
Stock-based compensation | ||||
Vesting period | 5 years | |||
Performance Stock Units | ||||
Stock-based compensation | ||||
Vesting period | 3 years | |||
Unrecognized compensation costs, period for recognition | 3 years | |||
Performance Stock Units | Minimum | ||||
Stock-based compensation | ||||
Vesting rights, percentage | 0% | |||
Performance Stock Units | Maximum | ||||
Stock-based compensation | ||||
Vesting rights, percentage | 200% |
Equity - Summary of the Company
Equity - Summary of the Company's RSU Activity (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested shares outstanding at the beginning of the period (in shares) | 740,958 | ||
Granted (in shares) | 494,380 | ||
Vested (in shares) | (399,475) | ||
Forfeited (in shares) | (183,971) | ||
Non-vested shares outstanding at the end of the period (in shares) | 651,892 | 740,958 | |
Weighted Average Grant Date Fair Value | |||
Non-vested shares outstanding at the beginning of the period (in dollars per share) | $ 77.08 | ||
Granted (in dollars per share) | 70.38 | ||
Vested (in dollars per share) | 71.87 | ||
Forfeited (in dollars per share) | 76.13 | ||
Non-vested shares outstanding at the end of the period (in dollars per share) | $ 75.46 | $ 77.08 | |
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested shares outstanding at the beginning of the period (in shares) | 552,643 | ||
Granted (in shares) | 353,687 | ||
Vested (in shares) | (337,684) | ||
Forfeited (in shares) | (87,512) | ||
Non-vested shares outstanding at the end of the period (in shares) | 481,134 | 552,643 | |
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 79.75 | $ 76.80 | |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested shares outstanding at the beginning of the period (in shares) | 188,315 | ||
Granted (in shares) | 140,693 | ||
Vested (in shares) | (61,791) | ||
Forfeited (in shares) | (96,459) | ||
Non-vested shares outstanding at the end of the period (in shares) | 170,758 | 188,315 |
Cash And Cash Equivalents And_3
Cash And Cash Equivalents And Restricted Cash - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 65,405 | $ 40,658 | ||
Restricted cash | 56,686 | 96,137 | ||
Cash, cash equivalents, and restricted cash | 122,091 | 136,795 | $ 156,570 | $ 88,561 |
Obligation payable under Receivables Purchase Agreement | $ 0 | $ 60,700 |
Cash And Cash Equivalents And_4
Cash And Cash Equivalents And Restricted Cash - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||
Interest payments | $ 81,098 | $ 43,094 | $ 14,539 |
Income tax payments | $ 61,050 | $ 76,038 | $ 99,899 |
Other Balance Sheet Component_2
Other Balance Sheet Components - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | $ (3,719) | $ (8,273) | |
Accounts receivable, net | 826,873 | 807,110 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 8,273 | 8,044 | $ 6,051 |
Provision for estimated credit losses | 7,097 | 6,799 | 11,038 |
Write-offs, net of recoveries | (11,651) | (6,570) | (9,045) |
Balance at end of period | 3,719 | 8,273 | $ 8,044 |
Billed and billable receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable Gross | 692,707 | 723,979 | |
Unbilled receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Accounts Receivable Gross | $ 137,885 | $ 91,404 |
Other Balance Sheet Component_3
Other Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Receivables Purchase Agreement, maximum sales amount | $ 200,000 | |||
Transfer of financial assets, accounted for as sales | 450,400 | $ 74,200 | ||
Cash received from transfer of financial assets | 447,700 | 73,900 | ||
Depreciation expense | 28,400 | 28,300 | $ 34,100 | |
Gain on sale of land and building | 0 | 11,046 | 0 | |
Capitalized software amortization expense | 26,300 | 14,100 | 12,300 | |
Amortization of deferred contract costs | $ 12,700 | $ 8,900 | $ 13,600 | |
Land and Building | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gain on sale of land and building | $ 11,000 |
Other Balance Sheet Component_4
Other Balance Sheet Components - Schedule of Property and Equipment, at cost (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 213,430 | $ 287,985 |
Accumulated depreciation | (174,599) | (235,727) |
Property and equipment, net | 38,831 | 52,258 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 134,910 | 209,258 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 78,520 | $ 78,727 |
Other Balance Sheet Component_5
Other Balance Sheet Components - Schedule of Components of Capitalized Computer Software (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Receivables [Abstract] | ||
Capitalized software | $ 195,813 | $ 161,353 |
Accumulated amortization | (88,002) | (102,613) |
Capitalized software, net | $ 107,811 | $ 58,740 |
Other Balance Sheet Component_6
Other Balance Sheet Components - Schedule of Deferred Contract Costs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Receivables [Abstract] | ||
Deferred contract costs | $ 77,597 | $ 76,498 |
Accumulated amortization | (32,225) | (28,766) |
Total deferred contract costs, net | $ 45,372 | $ 47,732 |
Other Balance Sheet Component_7
Other Balance Sheet Components - Schedule of Changes in Accumulated Other Comprehensive Loss by Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Shareholders' Equity | |||
Beginning balance | $ 1,549,371 | $ 1,480,329 | $ 1,241,819 |
Other comprehensive income/(loss) before reclassifications | 15,067 | 5,500 | 2,222 |
Amounts reclassified from accumulated other comprehensive income/(loss) | (8,721) | 447 | 508 |
Net current period other comprehensive income/(loss) | 6,346 | 5,947 | 2,730 |
Ending balance | 1,667,835 | 1,549,371 | 1,480,329 |
Foreign currency translation adjustment | |||
Increase (Decrease) in Shareholders' Equity | |||
Beginning balance | (57,109) | (39,605) | (42,638) |
Other comprehensive income/(loss) before reclassifications | 6,509 | (17,504) | 3,033 |
Amounts reclassified from accumulated other comprehensive income/(loss) | 116 | 0 | 0 |
Net current period other comprehensive income/(loss) | 6,625 | (17,504) | 3,033 |
Ending balance | (50,484) | (57,109) | (39,605) |
Net unrealized (loss)/gain on derivatives, net of tax | |||
Increase (Decrease) in Shareholders' Equity | |||
Beginning balance | 23,148 | (303) | 0 |
Other comprehensive income/(loss) before reclassifications | 8,558 | 23,004 | (811) |
Amounts reclassified from accumulated other comprehensive income/(loss) | (8,837) | 447 | 508 |
Net current period other comprehensive income/(loss) | (279) | 23,451 | (303) |
Ending balance | 22,869 | 23,148 | (303) |
Total | |||
Increase (Decrease) in Shareholders' Equity | |||
Beginning balance | (33,961) | (39,908) | (42,638) |
Ending balance | $ (27,615) | $ (33,961) | $ (39,908) |
Commitments and contingencies -
Commitments and contingencies - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) action case |
Loss Contingencies [Line Items] | |
Loss contingency accrual | $ 3.4 |
Performance bond commitments | $ 39.4 |
MOVEit, Federal Court | |
Loss Contingencies [Line Items] | |
Pending cases | case | 9 |
MOVEit, State Court | |
Loss Contingencies [Line Items] | |
Pending cases | action | 6 |
Employee Benefit Plans And De_2
Employee Benefit Plans And Deferred Compensation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of liabilities that can be met plan assets | 86% | ||
Investments in mutual funds | $ 26.4 | ||
UNITED STATES | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution to defined contribution plans | 34.1 | $ 28 | $ 17.3 |
Foreign Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer contribution to defined contribution plans | $ 19.8 | $ 23.7 | $ 22.8 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 30, 2023 | Oct. 06, 2023 | Sep. 30, 2023 |
Subsequent Event [Line Items] | |||
Impairment charges | $ 2.9 | ||
Singapore, Italy and Canada | |||
Subsequent Event [Line Items] | |||
Impairment charges | $ 2.9 | ||
Common Stock | Forecast | |||
Subsequent Event [Line Items] | |||
Payments of dividends | $ 18.3 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash dividend declared (in dollars per share) | $ 0.30 |