Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2024 | May 06, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 60,796,458 | |
Entity Central Index Key | 0001032220 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,348,357 | $ 1,206,852 | $ 2,675,398 | $ 2,456,098 |
Cost of revenue | 1,030,768 | 978,249 | 2,057,755 | 1,982,748 |
Gross profit | 317,589 | 228,603 | 617,643 | 473,350 |
Selling, general, and administrative expenses | 168,454 | 142,448 | 337,649 | 288,900 |
Amortization of intangible assets | 21,641 | 23,650 | 44,990 | 47,168 |
Operating income | 127,494 | 62,505 | 235,004 | 137,282 |
Interest expense | 20,366 | 20,999 | 41,873 | 42,605 |
Other expense/(income), net | (822) | (818) | (334) | (1,084) |
Income before income taxes | 107,950 | 42,324 | 193,465 | 95,761 |
Provision for income taxes | 27,440 | 10,536 | 48,807 | 23,978 |
Net income | $ 80,510 | $ 31,788 | $ 144,658 | $ 71,783 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.31 | $ 0.52 | $ 2.36 | $ 1.17 |
Diluted (in dollars per share) | $ 1.31 | $ 0.52 | $ 2.35 | $ 1.17 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 61,371 | 61,120 | 61,330 | 61,119 |
Diluted (in shares) | 61,622 | 61,383 | 61,573 | 61,265 |
Dividends declared per share (in dollars per share) | $ 0.30 | $ 0.28 | $ 0.60 | $ 0.56 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 80,510 | $ 31,788 | $ 144,658 | $ 71,783 |
Other comprehensive (loss)/income, net of tax: | ||||
Foreign currency translation adjustments | (2,245) | 965 | 3,667 | 9,001 |
Net gains/(losses) on cash flow hedge, net of tax effect of $957, $(1,630), $(2,212), and $(2,979), respectively | 2,684 | (4,562) | (6,201) | (8,343) |
Other comprehensive income/(loss) | 439 | (3,597) | (2,534) | 658 |
Comprehensive income | $ 80,949 | $ 28,191 | $ 142,124 | $ 72,441 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net losses on cash flow hedges, tax | $ 957 | $ (1,630) | $ (2,212) | $ (2,979) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Assets: | ||
Cash and cash equivalents | $ 77,370 | $ 65,405 |
Accounts receivable, net | 916,004 | 826,873 |
Income taxes receivable | 14,167 | 16,556 |
Prepaid expenses and other current assets | 110,912 | 146,632 |
Total current assets | 1,118,453 | 1,055,466 |
Property and equipment, net | 35,371 | 38,831 |
Capitalized software, net | 141,943 | 107,811 |
Operating lease right-of-use assets | 148,413 | 163,929 |
Goodwill | 1,780,158 | 1,779,215 |
Intangible assets, net | 676,909 | 703,648 |
Deferred contract costs, net | 49,102 | 45,372 |
Deferred compensation plan assets | 51,786 | 42,919 |
Deferred income taxes | 2,129 | 2,459 |
Other assets | 36,880 | 46,147 |
Total assets | 4,041,144 | 3,985,797 |
Liabilities: | ||
Accounts payable and accrued liabilities | 276,199 | 282,081 |
Accrued compensation and benefits | 172,601 | 194,251 |
Deferred revenue, current portion | 76,574 | 60,477 |
Income taxes payable | 15,792 | 451 |
Long-term debt, current portion | 88,517 | 86,844 |
Operating lease liabilities, current portion | 48,470 | 49,852 |
Other current liabilities | 50,563 | 49,058 |
Total current liabilities | 728,716 | 723,014 |
Deferred revenue, non-current portion | 33,374 | 38,849 |
Deferred income taxes | 192,890 | 203,898 |
Long-term debt, non-current portion | 1,121,337 | 1,163,149 |
Deferred compensation plan liabilities, non-current portion | 53,539 | 46,432 |
Operating lease liabilities, non-current portion | 112,780 | 129,367 |
Other liabilities | 9,365 | 13,253 |
Total liabilities | 2,252,001 | 2,317,962 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock, no par value; 100,000 shares authorized; 61,037 and 60,998 shares issued and outstanding as of March 31, 2024, and September 30, 2023, respectively | 594,387 | 577,898 |
Accumulated other comprehensive loss | (30,149) | (27,615) |
Retained earnings | 1,224,905 | 1,117,552 |
Total shareholders' equity | 1,789,143 | 1,667,835 |
Total liabilities and shareholders' equity | $ 4,041,144 | $ 3,985,797 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 61,037 | 60,998 |
Common stock, shares outstanding (in shares) | 61,037 | 60,998 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 144,658 | $ 71,783 |
Adjustments to reconcile net income to cash flows from operations: | ||
Depreciation and amortization of property, equipment, and capitalized software | 16,616 | 26,321 |
Amortization of intangible assets | 44,990 | 47,168 |
Amortization of debt issuance costs and debt discount | 1,202 | 1,635 |
Deferred income taxes | (8,315) | (1,368) |
Stock compensation expense | 18,124 | 13,943 |
Loss on sale of businesses | 1,018 | 883 |
Change in assets and liabilities, net of effects of business combinations: | ||
Accounts receivable | (92,385) | 62,529 |
Prepaid expenses and other current assets | 19,932 | 13,412 |
Deferred contract costs | (3,600) | 583 |
Accounts payable and accrued liabilities | (6,301) | (6,361) |
Accrued compensation and benefits | (10,556) | (14,222) |
Deferred revenue | 10,705 | (18,347) |
Income taxes | 13,310 | (6,578) |
Operating lease right-of-use assets and liabilities | (385) | (2,072) |
Other assets and liabilities | 3,083 | (14,272) |
Net cash provided by operating activities | 152,096 | 175,037 |
Cash flows from investing activities: | ||
Purchases of property and equipment and capitalized software | (47,547) | (33,751) |
Asset acquisition | (18,006) | 0 |
Proceeds from divestitures | 3,078 | 9,124 |
Net cash used in investing activities | (62,475) | (24,627) |
Cash flows from financing activities: | ||
Cash dividends paid to Maximus shareholders | (36,608) | (34,033) |
Tax withholding related to RSU vesting | (13,455) | (8,475) |
Payments for contingent consideration | (8,168) | (4,041) |
Proceeds from borrowings | 423,409 | 462,398 |
Principal payments for debt | (464,787) | (530,460) |
Cash-collateralized escrow liabilities | 5,122 | (57,060) |
Net cash used in financing activities | (94,487) | (171,671) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 1,115 | 3,186 |
Net change in cash, cash equivalents, and restricted cash | (3,751) | (18,075) |
Cash, cash equivalents, and restricted cash, beginning of period | 122,091 | 136,795 |
Cash, cash equivalents, and restricted cash, end of period | $ 118,340 | $ 118,720 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Sep. 30, 2022 | 60,774 | |||
Beginning balance at Sep. 30, 2022 | $ 1,549,371 | $ 557,978 | $ (33,961) | $ 1,025,354 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 39,995 | 39,995 | ||
Foreign currency translation | 8,036 | 8,036 | ||
Cash flow hedge, net of tax | (3,781) | (3,781) | ||
Cash dividends | (17,017) | (17,017) | ||
Dividends on RSUs | 0 | 298 | (298) | |
Stock compensation expense | 4,403 | $ 4,403 | ||
Ending (in shares) at Dec. 31, 2022 | 60,774 | |||
Ending balance at Dec. 31, 2022 | 1,581,007 | $ 562,679 | (29,706) | 1,048,034 |
Balance (in shares) at Sep. 30, 2022 | 60,774 | |||
Beginning balance at Sep. 30, 2022 | 1,549,371 | $ 557,978 | (33,961) | 1,025,354 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 71,783 | |||
Foreign currency translation | 9,001 | |||
Cash flow hedge, net of tax | (8,343) | |||
Ending (in shares) at Mar. 31, 2023 | 60,784 | |||
Ending balance at Mar. 31, 2023 | 1,601,722 | $ 572,632 | (33,303) | 1,062,393 |
Balance (in shares) at Dec. 31, 2022 | 60,774 | |||
Beginning balance at Dec. 31, 2022 | 1,581,007 | $ 562,679 | (29,706) | 1,048,034 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 31,788 | 31,788 | ||
Foreign currency translation | 965 | 965 | ||
Cash flow hedge, net of tax | (4,562) | (4,562) | ||
Cash dividends | (17,016) | (17,016) | ||
Dividends on RSUs | 0 | 413 | (413) | |
Stock compensation expense | 9,540 | $ 9,540 | ||
RSUs vested (in shares) | 10 | |||
Ending (in shares) at Mar. 31, 2023 | 60,784 | |||
Ending balance at Mar. 31, 2023 | $ 1,601,722 | $ 572,632 | (33,303) | 1,062,393 |
Balance (in shares) at Sep. 30, 2023 | 60,998 | 60,998 | ||
Beginning balance at Sep. 30, 2023 | $ 1,667,835 | $ 577,898 | (27,615) | 1,117,552 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 64,148 | 64,148 | ||
Foreign currency translation | 5,912 | 5,912 | ||
Cash flow hedge, net of tax | (8,885) | (8,885) | ||
Cash dividends | (18,299) | (18,299) | ||
Dividends on RSUs | 0 | 285 | (285) | |
Stock compensation expense | 9,427 | 9,427 | ||
Tax withholding adjustment related to RSU vesting | (2,332) | $ (2,332) | ||
RSUs vested (in shares) | 33 | |||
Ending (in shares) at Dec. 31, 2023 | 61,031 | |||
Ending balance at Dec. 31, 2023 | $ 1,717,806 | $ 585,278 | (30,588) | 1,163,116 |
Balance (in shares) at Sep. 30, 2023 | 60,998 | 60,998 | ||
Beginning balance at Sep. 30, 2023 | $ 1,667,835 | $ 577,898 | (27,615) | 1,117,552 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 144,658 | |||
Foreign currency translation | 3,667 | |||
Cash flow hedge, net of tax | $ (6,201) | |||
Ending (in shares) at Mar. 31, 2024 | 61,037 | 61,037 | ||
Ending balance at Mar. 31, 2024 | $ 1,789,143 | $ 594,387 | (30,149) | 1,224,905 |
Balance (in shares) at Dec. 31, 2023 | 61,031 | |||
Beginning balance at Dec. 31, 2023 | 1,717,806 | $ 585,278 | (30,588) | 1,163,116 |
Increase (Decrease) in Shareholders' Equity | ||||
Net income | 80,510 | 80,510 | ||
Foreign currency translation | (2,245) | (2,245) | ||
Cash flow hedge, net of tax | 2,684 | 2,684 | ||
Cash dividends | (18,309) | (18,309) | ||
Dividends on RSUs | 0 | 412 | (412) | |
Stock compensation expense | $ 8,697 | $ 8,697 | ||
RSUs vested (in shares) | 6 | |||
Ending (in shares) at Mar. 31, 2024 | 61,037 | 61,037 | ||
Ending balance at Mar. 31, 2024 | $ 1,789,143 | $ 594,387 | $ (30,149) | $ 1,224,905 |
Organization
Organization | 6 Months Ended |
Mar. 31, 2024 | |
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 ("U.S.") and worldwide. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2024 | |
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 ("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. Basis of Presentation for Interim Periods Certain information and footnote disclosures normally included for the annual financial statements to be prepared in accordance with U.S. GAAP have been condensed or omitted for the interim periods presented. We believe that the unaudited interim financial statements include all adjustments (which are normal and recurring in nature) necessary to present fairly our financial position and the results of operations and cash flows for the periods presented. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for the year or future periods. The financial statements should be read in conjunction with our audited consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. We have continued to follow the accounting policies set forth in those financial statements. 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, including goodwill, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation. |
Business Segments
Business Segments | 6 Months Ended |
Mar. 31, 2024 | |
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 Veteran's Evaluation Services ("VES"), a Maximus company, that manages the clinical evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs ("VA"). U.S. Services Our U.S. Services Segment provides a variety of business process services ("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 Affordable Care Act ("ACA"), Medicaid, the Children's Health Insurance Program ("CHIP"), Temporary Assistance to Needy Families ("TANF"), and child support programs. Previously, this segment suffered from reduced operating leverage resulting from the pause in Medicaid redeterminations during the COVID-19 pandemic, which resumed in fiscal year 2023. 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 and the recently awarded replacement contract to start in 2024, Functional Assessment Services, and Restart; and Australia, including Workforce Australia, and other employment support and job seeker services worldwide. Table 3: Results of Operation by Business Segment For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Amount % (1) Amount % (1) Amount % (1) Amount % (1) (dollars in thousands) Revenue: U.S. Federal Services $ 701,702 $ 584,075 $ 1,378,780 $ 1,202,242 U.S. Services 486,115 449,703 975,960 889,181 Outside the U.S. 160,540 173,074 320,658 364,675 Revenue $ 1,348,357 $ 1,206,852 $ 2,675,398 $ 2,456,098 Gross profit: U.S. Federal Services $ 163,337 23.3 % $ 122,874 21.0 % $ 319,999 23.2 % $ 245,568 20.4 % U.S. Services 130,122 26.8 % 86,016 19.1 % 248,485 25.5 % 169,614 19.1 % Outside the U.S. 24,130 15.0 % 19,713 11.4 % 49,159 15.3 % 58,168 16.0 % Gross profit $ 317,589 23.6 % $ 228,603 18.9 % $ 617,643 23.1 % $ 473,350 19.3 % Selling, general, and administrative expenses: U.S. Federal Services $ 79,867 11.4 % $ 75,050 12.8 % $ 167,722 12.2 % $ 146,699 12.2 % U.S. Services 62,201 12.8 % 43,415 9.7 % 114,501 11.7 % 89,257 10.0 % Outside the U.S. 23,460 14.6 % 23,425 13.5 % 48,601 15.2 % 51,814 14.2 % Divestiture-related charges (2) — NM 883 NM 1,018 NM 883 NM Other (3) 2,926 NM (325) NM 5,807 NM 247 NM Selling, general, and administrative expenses $ 168,454 12.5 % $ 142,448 11.8 % $ 337,649 12.6 % $ 288,900 11.8 % Operating income/(loss): U.S. Federal Services $ 83,470 11.9 % $ 47,824 8.2 % $ 152,277 11.0 % $ 98,869 8.2 % U.S. Services 67,921 14.0 % 42,601 9.5 % 133,984 13.7 % 80,357 9.0 % Outside the U.S. 670 0.4 % (3,712) (2.1) % 558 0.2 % 6,354 1.7 % Amortization of intangible assets (21,641) NM (23,650) NM (44,990) NM (47,168) NM Divestiture-related charges (2) — NM (883) NM (1,018) NM (883) NM Other (3) (2,926) NM 325 NM (5,807) NM (247) NM Operating income $ 127,494 9.5 % $ 62,505 5.2 % $ 235,004 8.8 % $ 137,282 5.6 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2) We have sold businesses in both fiscal years 2023 and 2024. Refer to "Note 7. Acquisitions and Divestitures" for more details. (3) Other expenses includes credits and costs that are not allocated to a particular segment. This includes expenses incurred as part of our acquisitions, as well as potential acquisitions which have not been or may not be completed. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2024 | |
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 contract type and customer type. 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 Contract Type For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (dollars in thousands) Performance-based $ 738,888 54.8 % $ 574,747 47.6 % $ 1,443,599 54.0 % $ 1,143,964 46.6 % Cost-plus 334,498 24.8 % 312,176 25.9 % 676,513 25.3 % 659,495 26.9 % Fixed price 166,816 12.4 % 180,674 15.0 % 343,493 12.8 % 355,747 14.5 % Time and materials 108,155 8.0 % 139,255 11.5 % 211,793 7.9 % 296,892 12.1 % Total revenue $ 1,348,357 $ 1,206,852 $ 2,675,398 $ 2,456,098 Table 4.2: Revenue by Customer Type For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (dollars in thousands) U.S. federal government agencies $ 685,939 50.9 % $ 569,897 47.2 % $ 1,348,885 50.4 % $ 1,173,815 47.8 % U.S. state government agencies 483,147 35.8 % 446,549 37.0 % 970,090 36.3 % 883,911 36.0 % International government agencies 156,796 11.6 % 161,359 13.4 % 312,408 11.7 % 343,119 14.0 % Other, including local municipalities and commercial customers 22,475 1.7 % 29,047 2.4 % 44,015 1.6 % 55,253 2.2 % Total revenue $ 1,348,357 $ 1,206,852 $ 2,675,398 $ 2,456,098 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 March 31, 2024, and September 30, 2023, $24.1 million and $20.7 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 three and six months ended March 31, 2024, we recognized revenue of $7.6 million and $45.3 million, respectively, included in our deferred revenue balances at September 30, 2023. During the three and six months ended March 31, 2023, we recognized revenue of $34.8 million and $85.9 million, respectively, included in our deferred revenue balances at September 30, 2022. Contract estimates We are required to use estimates in recognizing revenue from some of our contracts. S ome 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. Table 4.3: Effect of Changes in Contract Estimates For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (in thousands, except per share data) Benefit to/(reduction of) revenue recognized due to changes in contract estimates $ (3,098) $ (6,496) $ (9,196) $ (6,137) Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates $ (0.04) $ (0.08) $ (0.11) $ (0.07) Remaining performance obligations As of March 31, 2024, we had approximately $275 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 75% 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 | 6 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Table 5: Weighted Average Number of Shares - Earnings Per Share For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (in thousands) Basic weighted average shares outstanding 61,371 61,120 61,330 61,119 Dilutive effect of unvested RSUs and PSUs 251 263 243 146 Denominator for diluted earnings per share 61,622 61,383 61,573 61,265 The diluted earnings per share calculation for the three and six months ended March 31, 2024, excludes approximately 202,000 and 227,000 unvested anti-dilutive restricted stock units, respectively. For the three and six months ended March 31, 2023, approximately 99,000 and 300,000 unvested anti-dilutive restricted stock units were excluded from the diluted earnings per share calculation, respectively. |
Debt And Derivatives
Debt And Derivatives | 6 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt And Derivatives | DEBT AND DERIVATIVES Table 6.1: Details of Debt March 31, 2024 September 30, 2023 (in thousands) Term Loan A, due 2026 $ 868,125 $ 909,375 Term Loan B, due 2028 343,170 344,934 Subsidiary loan agreements 4,892 3,220 Total debt principal 1,216,187 1,257,529 Less: Unamortized debt-issuance costs and discounts (6,333) (7,536) Total debt 1,209,854 1,249,993 Less: Current portion of long-term debt (88,517) (86,844) Long-term debt $ 1,121,337 $ 1,163,149 Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At March 31, 2024, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends. The following table sets forth future minimum principal payments due under our debt obligations as of March 31, 2024, for the remainder of fiscal year 2024 through fiscal year 2028: Table 6.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) April 1, 2024 through September 30, 2024 $ 47,906 Year ended September 30, 2025 92,903 Year ended September 30, 2026 741,028 Year ended September 30, 2027 3,528 Year ended September 30, 2028 330,822 Total Payments $ 1,216,187 Interest Rate Derivative Instruments To reduce our interest rate credit risk, we entered into interest-rate swap agreements covering $650 million of our Term Loan A, effectively setting a fixed rate for a portion of our debt. The balance of the debt pays interest based upon a floating index. At March 31, 2024, our effective interest rate, including the original issuance costs and discount rate, was 5.9%. At March 31, 2024, we recorded an asset of $22.6 million to reflect the fair value of these interest rate swap agreements, compared to an asset of $31.0 million at September 30, 2023. The asset is recorded as "other assets" within our consolidated balance sheet. Our interest rate agreement for a notional amount of $150 million expires in September 2024; the remaining balance of our swap agreements expires in May 2026, concurrent with the maturity of Term Loan A. |
Debt And Derivatives | DEBT AND DERIVATIVES Table 6.1: Details of Debt March 31, 2024 September 30, 2023 (in thousands) Term Loan A, due 2026 $ 868,125 $ 909,375 Term Loan B, due 2028 343,170 344,934 Subsidiary loan agreements 4,892 3,220 Total debt principal 1,216,187 1,257,529 Less: Unamortized debt-issuance costs and discounts (6,333) (7,536) Total debt 1,209,854 1,249,993 Less: Current portion of long-term debt (88,517) (86,844) Long-term debt $ 1,121,337 $ 1,163,149 Our credit agreements require us to comply with a number of covenants, including leverage and interest coverage ratios. At March 31, 2024, we are in compliance with all covenants. We do not believe that the covenants represent a significant restriction on our ability to successfully operate the business or to pay dividends. The following table sets forth future minimum principal payments due under our debt obligations as of March 31, 2024, for the remainder of fiscal year 2024 through fiscal year 2028: Table 6.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) April 1, 2024 through September 30, 2024 $ 47,906 Year ended September 30, 2025 92,903 Year ended September 30, 2026 741,028 Year ended September 30, 2027 3,528 Year ended September 30, 2028 330,822 Total Payments $ 1,216,187 Interest Rate Derivative Instruments To reduce our interest rate credit risk, we entered into interest-rate swap agreements covering $650 million of our Term Loan A, effectively setting a fixed rate for a portion of our debt. The balance of the debt pays interest based upon a floating index. At March 31, 2024, our effective interest rate, including the original issuance costs and discount rate, was 5.9%. At March 31, 2024, we recorded an asset of $22.6 million to reflect the fair value of these interest rate swap agreements, compared to an asset of $31.0 million at September 30, 2023. The asset is recorded as "other assets" within our consolidated balance sheet. Our interest rate agreement for a notional amount of $150 million expires in September 2024; the remaining balance of our swap agreements expires in May 2026, concurrent with the maturity of Term Loan A. |
Acquisitions And Divestitures
Acquisitions And Divestitures | 6 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions And Divestitures | ACQUISITIONS AND DIVESTITURES On February 14, 2024, we acquired part of a vendor who has performed IT services for us over several years for cash consideration of $18.0 million. Almost all of the consideration was allocated directly to the most significant asset, the acquired workforce. The value of this asset will be amortized over eight years. This asset is anticipated to provide support across all three of our operating segments. We have sold a number of components of our Outside the U.S. Segment: • In November 2023, we sold our businesses in Italy and Singapore, as well as our employment services business in Canada, recording a loss on sale of $1.0 million. During the fourth quarter of fiscal year 2023, we recorded an impairment charge of $2.9 million related to these assets. • In March 2023, we sold our commercial practice in the United Kingdom, resulting in a pre-tax loss of $0.6 million. The cash consideration had a fair value of $16 million, to be received in installments. At March 31, 2024, we have collected $12.2 million. • In March 2023, we sold our Swedish subsidiary for cash consideration of $0.4 million, resulting in a small loss. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2024 | |
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 regarding revenues, margins, volumes, and contract terms. Accordingly, these inputs are not observable and are classified as level 3 within the fair value hierarchy. The tables below present assets and liabilities measured and recorded at fair value in our consolidated balance sheets on a recurring basis and their corresponding level within the fair value hierarchy. No transfers between Level 1, Level 2, and Level 3 fair value measurements occurred for the three months ended March 31, 2024. Table 8.1: Fair Value Measurements As of March 31, 2024 Level 1 Level 2 Level 3 Balance (in thousands) Assets: Deferred compensation assets - Rabbi Trust $ 31,969 $ — $ — $ 31,969 Interest rate swaps - $650 million notional value — 22,614 — 22,614 Total assets $ 31,969 $ 22,614 $ — $ 54,583 Liabilities: Contingent consideration — — 2,795 2,795 Total liabilities $ — $ — $ 2,795 $ 2,795 The fair values of receivables, prepaids, 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). Accumulated Other Comprehensive Loss All amounts recorded in accumulated other comprehensive loss are related to our foreign currency translations and interest rate swaps, net of tax. The following table shows changes in accumulated other comprehensive loss. Amounts reclassified from other comprehensive income were recorded within our selling, general and administrative expenses (for foreign currency translation adjustments) and within interest expense (for gains on derivatives). Table 8.2: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of September 30, 2023 $ (50,484) $ 22,869 $ (27,615) Other comprehensive income before reclassifications 3,534 (54) 3,480 Amounts reclassified from accumulated other comprehensive loss 133 (6,147) (6,014) Net current period other comprehensive losses 3,667 (6,201) (2,534) Balance as of March 31, 2024 $ (46,817) $ 16,668 $ (30,149) Contingent Consideration The fair value of our contingent considerations are based upon estimates of the likely payments, which are based upon assumptions over future performance. The liabilities are reviewed on a quarterly basis and, where changes in estimates arise, these are recorded to selling and general administrative expenses. Our contingent consideration relates to the businesses below: • In October 2021, we acquired the student loan servicing business from Navient, rebranded as Aidvantage. Future payments are based upon volumes, up to a maximum payment of $65.0 million. At March 31, 2024, and September 30, 2023, the Aidvantage contingent consideration was $2.8 million and $7.5 million, respectively. • In January 2022, we acquired BZ Bodies Limited. Future payments were based upon the performance of the business through December 2023, up to a maximum payment of $2.5 million (£2.0 million British Pounds). At September 30, 2023, we recorded a contingent consideration liability for the maximum payment, which we made in the second quarter of fiscal year 2024. Movement in our contingent consideration balance is as follows: Table 8.3: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Contingent Consideration (in thousands) Opening contingent consideration as of September 30, 2023 $ 9,903 Adjustments to fair value recorded in the period 971 Cash payments (8,168) Foreign currency translations 89 Closing contingent consideration as of March 31, 2024 $ 2,795 |
Equity
Equity | 6 Months Ended |
Mar. 31, 2024 | |
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 stockholders. The RSUs granted to employees vest ratably over three During the six months ended March 31, 2024, we issued approximately 335,000 RSUs, which will vest ratably over one Share Purchase Program Under a resolution adopted in March 2020, the Board of Directors authorized the purchase, at management's discretion, of up to $200 million of our common stock. No purchases were made during the first six months of fiscal year 2024; since March 31, 2024, we have purchased approximately 242,000 common shares at a cost of $19.3 million. |
Other Balance Sheet Items
Other Balance Sheet Items | 6 Months Ended |
Mar. 31, 2024 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |
Other Balance Sheet Items | OTHER BALANCE SHEET ITEMS Cash, Cash Equivalents, and Restricted Cash Table 10.1: Details of Cash and Cash Equivalents and Restricted Cash March 31, 2024 September 30, 2023 (in thousands) Cash and cash equivalents $ 77,370 $ 65,405 Restricted cash 40,970 56,686 Cash, cash equivalents, and restricted cash $ 118,340 $ 122,091 Restricted cash is recorded within "Prepaid expenses and other current assets" on the Consolidated Balance Sheets. Table 10.2: Supplemental Disclosures of Cash Flow Information For the Six Months Ended March 31, 2024 March 31, 2023 (in thousands) Interest payments $ 39,946 $ 19,262 Income tax payments $ 43,794 $ 31,926 Accounts Receivable, Net Table 10.3: Details of Accounts Receivable, Net March 31, 2024 September 30, 2023 (in thousands) Billed and billable receivables $ 776,877 $ 692,707 Unbilled receivables 150,956 137,885 Allowance for credit losses (11,829) (3,719) Accounts receivable, net $ 916,004 $ 826,873 On September 21, 2022, we entered into a Receivables Purchase Agreement with Wells Fargo Bank N.A., under which we may sell certain U.S.-originated accounts receivable balances up to a maximum amount of $200.0 million at any given time. 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 six months ended March 31, 2024, the gross fair value of accounts receivables transferred to Wells Fargo and derecognized from our balance sheet was $133.0 million. In exchange for these sales, we received $132.2 million of cash. 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. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Mar. 31, 2024 | |
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, if material. 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 ten additional cases arising out of the MOVEit cybersecurity incident have been filed in federal courts against Maximus, Inc. and its subsidiaries. The most recent case, Forsyth ex rel. S.F. v. Maximus, Inc., et al., No. 1:24-cv-10218-ADB was filed January 26, 2024. 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 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 initially filed 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 and are currently stayed pending the filing of consolidated amended compliant(s). 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 eight additional individual actions have been filed against Maximus, Inc. and its subsidiaries in Florida state courts, one of which has been dismissed. The Taylor matter pending in Volusia County, Florida has been stayed. The remaining seven matters pending in Florida’s state courts are pending in Miami-Dade County court. Each of the actions pending in Florida courts 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 has removed this case to federal court in the Southern District of Indiana and it has been transferred to the MDL. 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. As of March 31, 2024, the Company has reserve d $3.5 million i n connection with this matter. 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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On April 5, 2024, 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 May 31, 2024, to shareholders of record on May 15, 2024. Based on the number of shares outstanding, we anticipate a cash payment of approximately $18.3 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 80,510 | $ 64,148 | $ 31,788 | $ 39,995 | $ 144,658 | $ 71,783 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
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) | 6 Months Ended |
Mar. 31, 2024 | |
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 ("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. |
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, including goodwill, and amounts related to income taxes, certain accrued liabilities, and contingencies and litigation. |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information for each of the Company's Business Segments | Table 3: Results of Operation by Business Segment For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 Amount % (1) Amount % (1) Amount % (1) Amount % (1) (dollars in thousands) Revenue: U.S. Federal Services $ 701,702 $ 584,075 $ 1,378,780 $ 1,202,242 U.S. Services 486,115 449,703 975,960 889,181 Outside the U.S. 160,540 173,074 320,658 364,675 Revenue $ 1,348,357 $ 1,206,852 $ 2,675,398 $ 2,456,098 Gross profit: U.S. Federal Services $ 163,337 23.3 % $ 122,874 21.0 % $ 319,999 23.2 % $ 245,568 20.4 % U.S. Services 130,122 26.8 % 86,016 19.1 % 248,485 25.5 % 169,614 19.1 % Outside the U.S. 24,130 15.0 % 19,713 11.4 % 49,159 15.3 % 58,168 16.0 % Gross profit $ 317,589 23.6 % $ 228,603 18.9 % $ 617,643 23.1 % $ 473,350 19.3 % Selling, general, and administrative expenses: U.S. Federal Services $ 79,867 11.4 % $ 75,050 12.8 % $ 167,722 12.2 % $ 146,699 12.2 % U.S. Services 62,201 12.8 % 43,415 9.7 % 114,501 11.7 % 89,257 10.0 % Outside the U.S. 23,460 14.6 % 23,425 13.5 % 48,601 15.2 % 51,814 14.2 % Divestiture-related charges (2) — NM 883 NM 1,018 NM 883 NM Other (3) 2,926 NM (325) NM 5,807 NM 247 NM Selling, general, and administrative expenses $ 168,454 12.5 % $ 142,448 11.8 % $ 337,649 12.6 % $ 288,900 11.8 % Operating income/(loss): U.S. Federal Services $ 83,470 11.9 % $ 47,824 8.2 % $ 152,277 11.0 % $ 98,869 8.2 % U.S. Services 67,921 14.0 % 42,601 9.5 % 133,984 13.7 % 80,357 9.0 % Outside the U.S. 670 0.4 % (3,712) (2.1) % 558 0.2 % 6,354 1.7 % Amortization of intangible assets (21,641) NM (23,650) NM (44,990) NM (47,168) NM Divestiture-related charges (2) — NM (883) NM (1,018) NM (883) NM Other (3) (2,926) NM 325 NM (5,807) NM (247) NM Operating income $ 127,494 9.5 % $ 62,505 5.2 % $ 235,004 8.8 % $ 137,282 5.6 % (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM." (2) We have sold businesses in both fiscal years 2023 and 2024. Refer to "Note 7. Acquisitions and Divestitures" for more details. (3) Other expenses includes credits and costs that are not allocated to a particular segment. This includes expenses incurred as part of our acquisitions, as well as potential acquisitions which have not been or may not be completed. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Table 4.1: Revenue by Contract Type For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (dollars in thousands) Performance-based $ 738,888 54.8 % $ 574,747 47.6 % $ 1,443,599 54.0 % $ 1,143,964 46.6 % Cost-plus 334,498 24.8 % 312,176 25.9 % 676,513 25.3 % 659,495 26.9 % Fixed price 166,816 12.4 % 180,674 15.0 % 343,493 12.8 % 355,747 14.5 % Time and materials 108,155 8.0 % 139,255 11.5 % 211,793 7.9 % 296,892 12.1 % Total revenue $ 1,348,357 $ 1,206,852 $ 2,675,398 $ 2,456,098 Table 4.2: Revenue by Customer Type For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (dollars in thousands) U.S. federal government agencies $ 685,939 50.9 % $ 569,897 47.2 % $ 1,348,885 50.4 % $ 1,173,815 47.8 % U.S. state government agencies 483,147 35.8 % 446,549 37.0 % 970,090 36.3 % 883,911 36.0 % International government agencies 156,796 11.6 % 161,359 13.4 % 312,408 11.7 % 343,119 14.0 % Other, including local municipalities and commercial customers 22,475 1.7 % 29,047 2.4 % 44,015 1.6 % 55,253 2.2 % Total revenue $ 1,348,357 $ 1,206,852 $ 2,675,398 $ 2,456,098 Table 4.3: Effect of Changes in Contract Estimates For the Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (in thousands, except per share data) Benefit to/(reduction of) revenue recognized due to changes in contract estimates $ (3,098) $ (6,496) $ (9,196) $ (6,137) Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates $ (0.04) $ (0.08) $ (0.11) $ (0.07) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
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 Three Months Ended For the Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (in thousands) Basic weighted average shares outstanding 61,371 61,120 61,330 61,119 Dilutive effect of unvested RSUs and PSUs 251 263 243 146 Denominator for diluted earnings per share 61,622 61,383 61,573 61,265 |
Debt And Derivatives (Tables)
Debt And Derivatives (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Table 6.1: Details of Debt March 31, 2024 September 30, 2023 (in thousands) Term Loan A, due 2026 $ 868,125 $ 909,375 Term Loan B, due 2028 343,170 344,934 Subsidiary loan agreements 4,892 3,220 Total debt principal 1,216,187 1,257,529 Less: Unamortized debt-issuance costs and discounts (6,333) (7,536) Total debt 1,209,854 1,249,993 Less: Current portion of long-term debt (88,517) (86,844) Long-term debt $ 1,121,337 $ 1,163,149 |
Schedule of Maturities of Long-term Debt | The following table sets forth future minimum principal payments due under our debt obligations as of March 31, 2024, for the remainder of fiscal year 2024 through fiscal year 2028: Table 6.2: Details of Future Minimum Principal Payments Due Amount Due (in thousands) April 1, 2024 through September 30, 2024 $ 47,906 Year ended September 30, 2025 92,903 Year ended September 30, 2026 741,028 Year ended September 30, 2027 3,528 Year ended September 30, 2028 330,822 Total Payments $ 1,216,187 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities | Table 8.1: Fair Value Measurements As of March 31, 2024 Level 1 Level 2 Level 3 Balance (in thousands) Assets: Deferred compensation assets - Rabbi Trust $ 31,969 $ — $ — $ 31,969 Interest rate swaps - $650 million notional value — 22,614 — 22,614 Total assets $ 31,969 $ 22,614 $ — $ 54,583 Liabilities: Contingent consideration — — 2,795 2,795 Total liabilities $ — $ — $ 2,795 $ 2,795 Table 8.2: Details of Changes in Accumulated Other Comprehensive Loss by Category Foreign currency translation adjustment Net unrealized gain on derivatives, net of tax Total (in thousands) Balance as of September 30, 2023 $ (50,484) $ 22,869 $ (27,615) Other comprehensive income before reclassifications 3,534 (54) 3,480 Amounts reclassified from accumulated other comprehensive loss 133 (6,147) (6,014) Net current period other comprehensive losses 3,667 (6,201) (2,534) Balance as of March 31, 2024 $ (46,817) $ 16,668 $ (30,149) Movement in our contingent consideration balance is as follows: Table 8.3: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Contingent Consideration (in thousands) Opening contingent consideration as of September 30, 2023 $ 9,903 Adjustments to fair value recorded in the period 971 Cash payments (8,168) Foreign currency translations 89 Closing contingent consideration as of March 31, 2024 $ 2,795 |
Other Balance Sheet Items (Tabl
Other Balance Sheet Items (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Table 10.1: Details of Cash and Cash Equivalents and Restricted Cash March 31, 2024 September 30, 2023 (in thousands) Cash and cash equivalents $ 77,370 $ 65,405 Restricted cash 40,970 56,686 Cash, cash equivalents, and restricted cash $ 118,340 $ 122,091 |
Schedule of Restrictions on Cash and Cash Equivalents | Table 10.1: Details of Cash and Cash Equivalents and Restricted Cash March 31, 2024 September 30, 2023 (in thousands) Cash and cash equivalents $ 77,370 $ 65,405 Restricted cash 40,970 56,686 Cash, cash equivalents, and restricted cash $ 118,340 $ 122,091 |
Schedule of Supplementary Cash Flow Information | Table 10.2: Supplemental Disclosures of Cash Flow Information For the Six Months Ended March 31, 2024 March 31, 2023 (in thousands) Interest payments $ 39,946 $ 19,262 Income tax payments $ 43,794 $ 31,926 |
Schedule of Details of Accounts Receivable | Table 10.3: Details of Accounts Receivable, Net March 31, 2024 September 30, 2023 (in thousands) Billed and billable receivables $ 776,877 $ 692,707 Unbilled receivables 150,956 137,885 Allowance for credit losses (11,829) (3,719) Accounts receivable, net $ 916,004 $ 826,873 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Capitalized software, net | $ 141,943 | $ 107,811 |
Technology Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Capitalized software, net | $ 28,500 |
Business Segments - Financial i
Business Segments - Financial information by segment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 14, 2024 segment | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Financial information for each of the Company's business segments | |||||
Number of operating segments | segment | 3 | 3 | |||
Revenue: | |||||
Revenue | $ 1,348,357 | $ 1,206,852 | $ 2,675,398 | $ 2,456,098 | |
Gross profit: | |||||
Gross profit | $ 317,589 | $ 228,603 | $ 617,643 | $ 473,350 | |
Gross profit (as a percent) | 23.60% | 18.90% | 23.10% | 19.30% | |
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 168,454 | $ 142,448 | $ 337,649 | $ 288,900 | |
Selling, general, and administrative expenses (as a percent) | 12.50% | 11.80% | 12.60% | 11.80% | |
Divestiture-related charges | $ 1,018 | $ 883 | |||
Operating income/(loss): | |||||
Operating income | $ 127,494 | $ 62,505 | $ 235,004 | $ 137,282 | |
Operating income (as a percent) | 9.50% | 5.20% | 8.80% | 5.60% | |
Amortization of Intangible Assets | $ (21,641) | $ (23,650) | $ (44,990) | $ (47,168) | |
Operating Segments | U.S. Federal Services | |||||
Revenue: | |||||
Revenue | 701,702 | 584,075 | 1,378,780 | 1,202,242 | |
Gross profit: | |||||
Gross profit | $ 163,337 | $ 122,874 | $ 319,999 | $ 245,568 | |
Gross profit (as a percent) | 23.30% | 21% | 23.20% | 20.40% | |
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 79,867 | $ 75,050 | $ 167,722 | $ 146,699 | |
Selling, general, and administrative expenses (as a percent) | 11.40% | 12.80% | 12.20% | 12.20% | |
Operating income/(loss): | |||||
Operating income | $ 83,470 | $ 47,824 | $ 152,277 | $ 98,869 | |
Operating income (as a percent) | 11.90% | 8.20% | 11% | 8.20% | |
Operating Segments | U.S. Services | |||||
Revenue: | |||||
Revenue | $ 486,115 | $ 449,703 | $ 975,960 | $ 889,181 | |
Gross profit: | |||||
Gross profit | $ 130,122 | $ 86,016 | $ 248,485 | $ 169,614 | |
Gross profit (as a percent) | 26.80% | 19.10% | 25.50% | 19.10% | |
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 62,201 | $ 43,415 | $ 114,501 | $ 89,257 | |
Selling, general, and administrative expenses (as a percent) | 12.80% | 9.70% | 11.70% | 10% | |
Operating income/(loss): | |||||
Operating income | $ 67,921 | $ 42,601 | $ 133,984 | $ 80,357 | |
Operating income (as a percent) | 14% | 9.50% | 13.70% | 9% | |
Operating Segments | Outside the U.S. | |||||
Revenue: | |||||
Revenue | $ 160,540 | $ 173,074 | $ 320,658 | $ 364,675 | |
Gross profit: | |||||
Gross profit | $ 24,130 | $ 19,713 | $ 49,159 | $ 58,168 | |
Gross profit (as a percent) | 15% | 11.40% | 15.30% | 16% | |
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 23,460 | $ 23,425 | $ 48,601 | $ 51,814 | |
Selling, general, and administrative expenses (as a percent) | 14.60% | 13.50% | 15.20% | 14.20% | |
Operating income/(loss): | |||||
Operating income | $ 670 | $ (3,712) | $ 558 | $ 6,354 | |
Operating income (as a percent) | 0.40% | (2.10%) | 0.20% | 1.70% | |
Segment Reconciling Items | |||||
Selling, general, and administrative expenses: | |||||
Selling, general, and administrative expenses | $ 2,926 | $ (325) | $ 5,807 | $ 247 | |
Divestiture-related charges | 0 | 883 | 1,018 | 883 | |
Operating income/(loss): | |||||
Amortization of Intangible Assets | (21,641) | (23,650) | (44,990) | (47,168) | |
Other | $ (2,926) | $ 325 | $ (5,807) | $ (247) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,348,357 | $ 1,206,852 | $ 2,675,398 | $ 2,456,098 |
U.S. federal government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 685,939 | $ 569,897 | $ 1,348,885 | $ 1,173,815 |
U.S. federal government agencies | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 50.90% | 47.20% | 50.40% | 47.80% |
U.S. state government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 483,147 | $ 446,549 | $ 970,090 | $ 883,911 |
U.S. state government agencies | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 35.80% | 37% | 36.30% | 36% |
International government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 156,796 | $ 161,359 | $ 312,408 | $ 343,119 |
International government agencies | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 11.60% | 13.40% | 11.70% | 14% |
Other, including local municipalities and commercial customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 22,475 | $ 29,047 | $ 44,015 | $ 55,253 |
Other, including local municipalities and commercial customers | Revenue Benchmark | Customer Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 1.70% | 2.40% | 1.60% | 2.20% |
Performance-based | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 738,888 | $ 574,747 | $ 1,443,599 | $ 1,143,964 |
Performance-based | Revenue Benchmark | Contract Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 54.80% | 47.60% | 54% | 46.60% |
Cost-plus | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 334,498 | $ 312,176 | $ 676,513 | $ 659,495 |
Cost-plus | Revenue Benchmark | Contract Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 24.80% | 25.90% | 25.30% | 26.90% |
Fixed price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 166,816 | $ 180,674 | $ 343,493 | $ 355,747 |
Fixed price | Revenue Benchmark | Contract Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 12.40% | 15% | 12.80% | 14.50% |
Time and materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 108,155 | $ 139,255 | $ 211,793 | $ 296,892 |
Time and materials | Revenue Benchmark | Contract Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue in % | 8% | 11.50% | 7.90% | 12.10% |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue, revenue recognized | $ 7.6 | $ 34.8 | $ 45.3 | $ 85.9 | |
Unbilled receivables | |||||
Disaggregation of Revenue [Line Items] | |||||
Unbilled contracts receivable | $ 24.1 | $ 24.1 | $ 20.7 |
Revenue Recognition - Effect of
Revenue Recognition - Effect of Changes in Contract Estimates (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Benefit to/(reduction of) revenue recognized due to changes in contract estimates | $ 1,348,357 | $ 1,206,852 | $ 2,675,398 | $ 2,456,098 |
Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates (in dollars per share) | $ 1.31 | $ 0.52 | $ 2.35 | $ 1.17 |
Change in contract estimates | ||||
Disaggregation of Revenue [Line Items] | ||||
Benefit to/(reduction of) revenue recognized due to changes in contract estimates | $ (3,098) | $ (6,496) | $ (9,196) | $ (6,137) |
Benefit to/(reduction of) diluted earnings per share recognized due to changes in contract estimates (in dollars per share) | $ (0.04) | $ (0.08) | $ (0.11) | $ (0.07) |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 275 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 75% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 61,371 | 61,120 | 61,330 | 61,119 |
Dilutive effect of unvested RSUs and PSUs (in shares) | 251 | 263 | 243 | 146 |
Denominator for diluted earnings per share (in shares) | 61,622 | 61,383 | 61,573 | 61,265 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 202 | 99 | 227 | 300 |
Debt And Derivatives - Schedule
Debt And Derivatives - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Debt Instrument [Line Items] | ||
Debt principal | $ 1,216,187 | |
Total debt principal | 1,216,187 | $ 1,257,529 |
Less: Unamortized debt-issuance costs and discounts | (6,333) | (7,536) |
Total debt | 1,209,854 | 1,249,993 |
Less: Current portion of long-term debt | (88,517) | (86,844) |
Long-term debt | 1,121,337 | 1,163,149 |
Secured Debt | Term Loan A, due 2026 | ||
Debt Instrument [Line Items] | ||
Debt principal | 868,125 | 909,375 |
Secured Debt | Term Loan B, due 2028 | ||
Debt Instrument [Line Items] | ||
Debt principal | 343,170 | 344,934 |
Subsidiary loan agreements | ||
Debt Instrument [Line Items] | ||
Debt principal | $ 4,892 | $ 3,220 |
Debt And Derivatives - Narrativ
Debt And Derivatives - Narrative (Details) - USD ($) | Mar. 31, 2024 | Sep. 30, 2023 |
Debt Instrument [Line Items] | ||
Annual effective interest rate | 5.90% | |
Other Assets | ||
Debt Instrument [Line Items] | ||
Fair value of derivative asset | $ 22,600,000 | $ 31,000,000 |
Term Loan A, due 2026 | Interest Rate Swap | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 650,000,000 | |
Term Loan A, due 2026 | Interest Rate Swap 2 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 150,000,000 |
Debt And Derivatives - Schedu_2
Debt And Derivatives - Schedule of Repayments (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
April 1, 2024 through September 30, 2024 | $ 47,906 |
Year ended September 30, 2025 | 92,903 |
Year ended September 30, 2026 | 741,028 |
Year ended September 30, 2027 | 3,528 |
Year ended September 30, 2028 | 330,822 |
Total Payments | $ 1,216,187 |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 13 Months Ended | |||
Feb. 14, 2024 USD ($) segment | Nov. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | |
Business Acquisition [Line Items] | |||||||
Number of operating segments | segment | 3 | 3 | |||||
Proceeds from divestitures | $ 3,078 | $ 9,124 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Business Acquisition [Line Items] | |||||||
Loss on sale of business | $ 1,000 | ||||||
Impairment charge | $ 2,900 | ||||||
United Kingdom | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Business Acquisition [Line Items] | |||||||
Loss on sale of business | $ 600 | ||||||
Total fair value of consideration | 16,000 | 16,000 | |||||
Proceeds from divestitures | $ 12,200 | ||||||
Sweden | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Business Acquisition [Line Items] | |||||||
Total fair value of consideration | $ 400 | $ 400 | |||||
Opteamix LLC | |||||||
Business Acquisition [Line Items] | |||||||
Cash consideration | $ 18,000 | ||||||
Intangible assets, estimated useful life | 8 years |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands, £ in Millions | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 GBP (£) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 GBP (£) | Oct. 31, 2021 USD ($) | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||||||
Payments of contingent consideration | $ 8,168 | $ 4,041 | |||||
Aidvantage | |||||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||||||
Contingent consideration | $ 2,800 | $ 2,800 | $ 7,500 | ||||
BZ Bodies Limited | |||||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||||||
Contingent consideration | $ 2,500 | £ 2 | |||||
Payments of contingent consideration | $ 2,500 | £ 2 | |||||
Maximum | Navient | |||||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||||||
Contingent consideration | $ 65,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Interest Rate Swap | |
Financial information for each of the Company's business segments | |
Notional value, asset | $ 650,000 |
Fair Value, Recurring | |
Financial information for each of the Company's business segments | |
Total assets | 54,583 |
Contingent consideration | 2,795 |
Total liabilities | 2,795 |
Fair Value, Recurring | Interest Rate Swap | |
Financial information for each of the Company's business segments | |
Total assets | 22,614 |
Fair Value, Recurring | Deferred compensation assets - Rabbi Trust | |
Financial information for each of the Company's business segments | |
Total assets | 31,969 |
Level 1 | Fair Value, Recurring | |
Financial information for each of the Company's business segments | |
Total assets | 31,969 |
Contingent consideration | 0 |
Total liabilities | 0 |
Level 1 | Fair Value, Recurring | Interest Rate Swap | |
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 | 31,969 |
Level 2 | Fair Value, Recurring | |
Financial information for each of the Company's business segments | |
Total assets | 22,614 |
Contingent consideration | 0 |
Total liabilities | 0 |
Level 2 | Fair Value, Recurring | Interest Rate Swap | |
Financial information for each of the Company's business segments | |
Total assets | 22,614 |
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 | 2,795 |
Total liabilities | 2,795 |
Level 3 | Fair Value, Recurring | Interest Rate Swap | |
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 - Accum
Fair Value Measurements - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||||
Beginning balance | $ 1,717,806 | $ 1,581,007 | $ 1,667,835 | $ 1,549,371 |
Other comprehensive income before reclassifications | 3,480 | |||
Amounts reclassified from accumulated other comprehensive loss | (6,014) | |||
Net current period other comprehensive losses | 439 | (3,597) | (2,534) | 658 |
Ending balance | 1,789,143 | 1,601,722 | 1,789,143 | 1,601,722 |
Foreign currency translation adjustment | ||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||||
Beginning balance | (50,484) | |||
Other comprehensive income before reclassifications | 3,534 | |||
Amounts reclassified from accumulated other comprehensive loss | 133 | |||
Net current period other comprehensive losses | 3,667 | |||
Ending balance | (46,817) | (46,817) | ||
Net unrealized gain on derivatives, net of tax | ||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||||
Beginning balance | 22,869 | |||
Other comprehensive income before reclassifications | (54) | |||
Amounts reclassified from accumulated other comprehensive loss | (6,147) | |||
Net current period other comprehensive losses | (6,201) | |||
Ending balance | 16,668 | 16,668 | ||
Accumulated Other Comprehensive Loss | ||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||||
Beginning balance | (30,588) | (29,706) | (27,615) | (33,961) |
Net current period other comprehensive losses | (2,534) | |||
Ending balance | $ (30,149) | $ (33,303) | $ (30,149) | $ (33,303) |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2024 USD ($) | |
Contingent Consideration | |
Beginning balance | $ 9,903 |
Adjustments to fair value recorded in the period | $ 971 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) |
Cash payments | $ (8,168) |
Foreign currency translations | $ 89 |
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 | $ 2,795 |
Equity (Details)
Equity (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended | |
May 09, 2024 | Mar. 31, 2024 | Mar. 31, 2020 | |
Stock-based compensation | |||
Stock repurchase programs, authorized amount | $ 200 | ||
Common shares repurchased, value | $ 0 | ||
Subsequent Event | |||
Stock-based compensation | |||
Common shares repurchased, value | $ 19.3 | ||
Common shares repurchased (in shares) | 242 | ||
Restricted Stock Units (RSUs) | |||
Stock-based compensation | |||
Shares issued (in shares) | 335 | ||
Restricted Stock Units (RSUs) | Member of Board of Directors | A2021 Stock Incentive Plan | |||
Stock-based compensation | |||
Vesting period | 1 year | ||
Restricted Stock Units (RSUs) | Minimum | |||
Stock-based compensation | |||
Vesting period | 1 year | ||
Restricted Stock Units (RSUs) | Minimum | A2021 Stock Incentive Plan | |||
Stock-based compensation | |||
Vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Maximum | |||
Stock-based compensation | |||
Vesting period | 4 years | ||
Restricted Stock Units (RSUs) | Maximum | A2021 Stock Incentive Plan | |||
Stock-based compensation | |||
Vesting period | 5 years | ||
Performance Shares | |||
Stock-based compensation | |||
Vesting period | 3 years | ||
Shares issued (in shares) | 128 | ||
Performance Shares | Minimum | A2021 Stock Incentive Plan | |||
Stock-based compensation | |||
Vesting rights, percentage | 0% | ||
Performance Shares | Maximum | A2021 Stock Incentive Plan | |||
Stock-based compensation | |||
Vesting rights, percentage | 200% |
Other Balance Sheet Items - Sch
Other Balance Sheet Items - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 77,370 | $ 65,405 | ||
Restricted cash | 40,970 | 56,686 | ||
Cash, cash equivalents, and restricted cash | $ 118,340 | $ 122,091 | $ 118,720 | $ 136,795 |
Other Balance Sheet Items - Sup
Other Balance Sheet Items - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Interest payments | $ 39,946 | $ 19,262 |
Income tax payments | $ 43,794 | $ 31,926 |
Other Balance Sheet Items - Det
Other Balance Sheet Items - Details of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | $ (11,829) | $ (3,719) |
Accounts receivable, net | 916,004 | 826,873 |
Billed and billable receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and billable receivables | 776,877 | 692,707 |
Unbilled receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Billed and billable receivables | $ 150,956 | $ 137,885 |
Other Balance Sheet Items - Nar
Other Balance Sheet Items - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 21, 2022 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Receivables purchase agreement, maximum sales amount | $ 200 | |
Transfer of financial assets, accounted for as sales | $ 133 | |
Cash received from transfer of financial assets | $ 132.2 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Sep. 06, 2023 action | Mar. 31, 2024 USD ($) case |
Loss Contingencies [Line Items] | ||
Loss contingency accrual | $ | $ 3.5 | |
MOVEit, Federal Court | ||
Loss Contingencies [Line Items] | ||
Number of cases filed | case | 10 | |
MOVEit, State Court | ||
Loss Contingencies [Line Items] | ||
Number of cases filed | 8 | |
Number of cases dismissed | 1 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | May 31, 2024 | Apr. 05, 2024 |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Cash dividend declared (in dollars per share) | $ 0.30 | |
Common Stock | Forecast | ||
Subsequent Event [Line Items] | ||
Payments of dividends | $ 18.3 |