Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Nov. 01, 2013 | Mar. 31, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'MAXIMUS INC | ' | ' |
Entity Central Index Key | '0001032220 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $2,639,737,871 |
Entity Common Stock, Shares Outstanding | ' | 68,538,100 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Revenue | $1,331,279 | $1,050,145 | $929,633 |
Cost of revenue | 945,246 | 762,202 | 675,982 |
Gross profit | 386,033 | 287,943 | 253,651 |
Selling, general and administrative expenses | 197,859 | 157,402 | 132,058 |
Acquisition-related expenses | 2,168 | 2,876 | ' |
Legal and settlement expense (recovery), net | -202 | 90 | -808 |
Operating income from continuing operations | 186,208 | 127,575 | 122,401 |
Interest and other income, net | 2,851 | 4,176 | 3,495 |
Income from continuing operations before income taxes | 189,059 | 131,751 | 125,896 |
Provision for income taxes | 71,934 | 55,652 | 43,754 |
Income from continuing operations | 117,125 | 76,099 | 82,142 |
Discontinued operations, net of income taxes: | ' | ' | ' |
Loss from discontinued operations | -635 | ' | -133 |
Gain (loss) on disposal | 241 | 34 | -841 |
Income (loss) from discontinued operations | -394 | 34 | -974 |
Net income | $116,731 | $76,133 | $81,168 |
Basic earnings per share: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.72 | $1.12 | $1.19 |
Income (loss) from discontinued operations (in dollars per share) | ($0.01) | ' | ($0.01) |
Basic earnings per share (in dollars per share) | $1.71 | $1.12 | $1.18 |
Diluted earnings per share: | ' | ' | ' |
Income from continuing operations (in dollars per share) | $1.68 | $1.09 | $1.16 |
Income (loss) from discontinued operations (in dollars per share) | ($0.01) | ' | ($0.02) |
Diluted earnings per share (in dollars per share) | $1.67 | $1.09 | $1.14 |
Dividends per share (in dollars per share) | $0.18 | $0.18 | $0.15 |
Weighted average shares outstanding: | ' | ' | ' |
Basic (in shares) | 68,165 | 67,734 | 68,834 |
Diluted (in shares) | 69,893 | 69,611 | 71,062 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $116,731 | $76,133 | $81,168 |
Foreign currency translation adjustments | -12,253 | 7,760 | -2,050 |
Comprehensive income | $104,478 | $83,893 | $79,118 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $125,617 | $189,312 |
Restricted cash | 12,176 | 11,593 |
Accounts receivable-billed, net | 272,636 | 172,705 |
Accounts receivable-unbilled | 20,320 | 10,539 |
Prepaid income taxes | 358 | 3,800 |
Deferred income taxes | 26,443 | 22,207 |
Prepaid expenses and other current assets | 32,049 | 33,061 |
Total current assets | 489,599 | 443,217 |
Property and equipment, net | 77,710 | 58,798 |
Capitalized software, net | 40,456 | 27,390 |
Goodwill | 171,867 | 112,032 |
Intangible assets, net | 42,039 | 25,330 |
Deferred contract costs, net | 14,318 | 9,284 |
Deferred income taxes | 1,179 | 1,369 |
Deferred compensation plan assets | 10,314 | 9,220 |
Other assets | 10,496 | 8,653 |
Total assets | 857,978 | 695,293 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 109,020 | 73,128 |
Accrued compensation and benefits | 83,280 | 56,105 |
Deferred revenue | 53,137 | 45,501 |
Current portion of long-term debt | 170 | 178 |
Income taxes payable | 8,327 | 3,100 |
Other liabilities | 8,373 | 6,599 |
Total current liabilities | 262,307 | 184,611 |
Deferred revenue, less current portion | 32,953 | 34,075 |
Long-term debt | 1,319 | 1,558 |
Acquisition-related contingent consideration, less current portion | 388 | 406 |
Income taxes payable, less current portion | 1,191 | 1,412 |
Deferred income taxes | 16,359 | 10,384 |
Deferred compensation plan liabilities, less current portion | 13,953 | 11,741 |
Total liabilities | 328,470 | 244,187 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, no par value; 100,000 shares authorized; 68,525 and 67,971 shares issued and outstanding at September 30, 2013 and 2012, at stated amount, respectively | 415,271 | 395,967 |
Accumulated other comprehensive income | 7,987 | 20,240 |
Retained earnings | 106,250 | 34,899 |
Total shareholders' equity | 529,508 | 451,106 |
Total liabilities and shareholders' equity | $857,978 | $695,293 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Common stock, no par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 68,525 | 67,971 |
Common stock, shares outstanding | 68,525 | 67,971 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $116,731 | $76,133 | $81,168 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
(Income) loss from discontinued operations | 394 | -34 | 974 |
Depreciation and amortization | 35,816 | 26,460 | 22,845 |
Deferred income taxes | 2,396 | -3,274 | 1,758 |
Stock compensation expense | 14,555 | 12,077 | 9,485 |
Changes in assets and liabilities, net of effects of business combinations and divestitures: | ' | ' | ' |
Accounts receivable-billed | -93,092 | -7,213 | -11,584 |
Accounts receivable-unbilled | -9,905 | 2,214 | 10,068 |
Prepaid expenses and other current assets | -2,492 | -6,018 | -2,573 |
Deferred contract costs | -5,073 | -1,221 | -1,309 |
Accounts payable and accrued liabilities | 31,678 | 6,485 | 7,312 |
Accrued compensation and benefits | 21,308 | -2,648 | 4,490 |
Deferred revenue | 6,304 | 9,827 | -11,779 |
Income taxes | 2,034 | 6,885 | -10,814 |
Other assets and liabilities | 903 | -4,513 | -2,456 |
Cash provided by operating activities-continuing operations | 121,557 | 115,160 | 97,585 |
Cash used in operating activities-discontinued operations | -619 | ' | -725 |
Cash provided by operating activities | 120,938 | 115,160 | 96,860 |
Cash flows from investing activities: | ' | ' | ' |
Acquisition of businesses, net of cash acquired | -71,435 | -66,003 | ' |
Proceeds from settlement of final PSI price | 3,380 | ' | ' |
Purchases of property and equipment | -43,580 | -18,369 | -18,506 |
Capitalized software costs | -18,596 | -4,779 | -7,608 |
Proceeds from note receivable | 398 | 299 | 237 |
Proceeds from sale of discontinued operations | ' | 2,240 | ' |
Cash used in investing activities-continuing operations | -129,833 | -86,612 | -25,877 |
Cash used in investing activities | -129,833 | -86,612 | -25,877 |
Cash flows from financing activities: | ' | ' | ' |
Cash dividends paid | -12,272 | -12,180 | -10,327 |
Repurchases of common stock | -33,287 | -12,977 | -56,540 |
Stock compensation tax benefit | 10,569 | 7,268 | 6,996 |
Tax withholding related to RSU vesting | -8,868 | -4,464 | -3,516 |
Stock option exercises | 2,168 | 6,441 | 12,496 |
Issuance of long-term debt | ' | ' | 304 |
Repayment of long-term debt | -172 | -44 | ' |
Acquisition-related contingent consideration | ' | -1,809 | -1,021 |
Cash used in financing activities | -41,862 | -17,765 | -51,608 |
Effect of exchange rate changes on cash | -12,938 | 5,579 | -1,746 |
Net increase (decrease) in cash and cash equivalents | -63,695 | 16,362 | 17,629 |
Cash and cash equivalents, beginning of period | 189,312 | 172,950 | 155,321 |
Cash and cash equivalents, end of period | $125,617 | $189,312 | $172,950 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Accumulated Other Comprehensive Income | Retained Earnings |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Sep. 30, 2010 | $338,789 | $352,696 | $14,530 | ($28,437) |
Balance (in shares) at Sep. 30, 2010 | ' | 68,697,000 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Net income | 81,168 | ' | ' | 81,168 |
Foreign currency translation | -2,050 | ' | -2,050 | ' |
Cash dividends | -10,327 | ' | ' | -10,327 |
Dividends on RSUs | ' | 522 | ' | -522 |
Repurchases of common stock | -57,484 | ' | ' | -57,484 |
Repurchases of common stock (in shares) | -3,194,916 | -3,194,000 | ' | ' |
Stock compensation expense | 9,485 | 9,485 | ' | ' |
Stock compensation tax benefit | 6,996 | 6,996 | ' | ' |
Tax withholding related to RSU vesting | -4,616 | -4,616 | ' | ' |
Stock option exercises and RSU releases | 12,496 | 12,496 | ' | ' |
Stock option exercises and RSU releases (in shares) | ' | 2,084,000 | ' | ' |
Balance at Sep. 30, 2011 | 374,457 | 377,579 | 12,480 | -15,602 |
Balance (in shares) at Sep. 30, 2011 | ' | 67,587,000 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Net income | 76,133 | ' | ' | 76,133 |
Foreign currency translation | 7,760 | ' | 7,760 | ' |
Cash dividends | -12,180 | ' | ' | -12,180 |
Dividends on RSUs | ' | 656 | ' | -656 |
Repurchases of common stock | -12,796 | ' | ' | -12,796 |
Repurchases of common stock (in shares) | -612,000 | -612,000 | ' | ' |
Stock compensation expense | 12,077 | 12,077 | ' | ' |
Stock compensation tax benefit | 7,268 | 7,268 | ' | ' |
Tax withholding related to RSU vesting | -8,054 | -8,054 | ' | ' |
Stock option exercises and RSU releases | 6,441 | 6,441 | ' | ' |
Stock option exercises and RSU releases (in shares) | ' | 996,000 | ' | ' |
Balance at Sep. 30, 2012 | 451,106 | 395,967 | 20,240 | 34,899 |
Balance (in shares) at Sep. 30, 2012 | 67,971,000 | 67,971,000 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Net income | 116,731 | ' | ' | 116,731 |
Foreign currency translation | -12,253 | ' | -12,253 | ' |
Cash dividends | -12,272 | ' | ' | -12,272 |
Dividends on RSUs | ' | 583 | ' | -583 |
Repurchases of common stock | -32,525 | ' | ' | -32,525 |
Repurchases of common stock (in shares) | -974,498 | -974,000 | ' | ' |
Stock compensation expense | 14,555 | 14,555 | ' | ' |
Stock compensation tax benefit | 10,569 | 10,569 | ' | ' |
Common stock issued pursuant to acquisition of HML | 6,425 | 6,425 | ' | ' |
Common stock issued pursuant to acquisition of HML (in shares) | ' | 203,000 | ' | ' |
Tax withholding related to RSU vesting | -14,996 | -14,996 | ' | ' |
Stock option exercises and RSU releases | 2,168 | 2,168 | ' | ' |
Stock option exercises and RSU releases (in shares) | ' | 1,325,000 | ' | ' |
Balance at Sep. 30, 2013 | $529,508 | $415,271 | $7,987 | $106,250 |
Balance (in shares) at Sep. 30, 2013 | 68,525,000 | 68,525,000 | ' | ' |
Business_and_summary_of_signif
Business and summary of significant accounting policies | 12 Months Ended |
Sep. 30, 2013 | |
Business and summary of significant accounting policies | ' |
Business and summary of significant accounting policies | ' |
1. Business and summary of significant accounting policies | |
(a) Description of business | |
MAXIMUS, Inc. (the "Company" or "we") provides business process services (BPS) to government health and human services agencies in the United States and to foreign governments. The Company conducts its operations through two business segments: Health Services and Human Services. The Health Services Segment provides a variety of business process services for state, provincial and federal programs, such as ACA, Medicaid, CHIP, Medicare and the Health Insurance British Columbia Program. The Human Services Segment provides a variety of administrative support and case management services for federal, national, state and county human services agencies including welfare-to-work programs, child support, higher education services and K-12 special education services. | |
Other than disclosed in Note 20, the notes to the consolidated financial statements reflect operating results from continuing operations. | |
(b) Principles of consolidation | |
The consolidated financial statements include the accounts of MAXIMUS, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
(c) Use of estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates used by the Company include estimates of profits or loss on contracts in process, estimates of collectability of receivables, evaluation of asset impairment, accrual of estimated liabilities, and valuation of acquisition-related contingent consideration liabilities. | |
(d) Stock split | |
On April 16, 2013, the Company's Board of Directors declared a two-for-one stock split in the form of a dividend of one share for each outstanding share for shareholders of record on June 14, 2013. The additional shares were distributed on June 28, 2013. This stock-split did not affect the proportionate interests that stockholders maintained in the Company. All common stock and per share amounts throughout this document have been adjusted for the stock split. | |
(e) Revenue recognition | |
Revenue is generated from contracts with various pricing arrangements, including: | |
• | |
performance-based criteria, constituting approximately 48% of total revenue in fiscal year 2013; | |
• | |
fixed-price (29%); | |
• | |
costs incurred plus a negotiated fee ("cost-plus") (20%); and | |
• | |
time-and-materials (3%). | |
We recognize revenue on arrangements as work is performed and amounts are earned. We consider amounts to be earned once evidence of an arrangement has been obtained, services have been delivered, fees are fixed or determinable and collectability of revenue is reasonably assured. | |
We recognize revenue on performance-based contracts when earned, which generally occurs when amounts are billable to customers. This may result in revenue being recognized in irregular increments. | |
Revenue on cost-plus contracts is recognized based on costs incurred plus an estimate of the negotiated fee earned. | |
We recognize revenue on fixed-priced contracts when earned, as services are provided. Revenue is generally recognized on a straight-line basis unless evidence suggests that revenue is earned or obligations are fulfilled in a different pattern. The timing of expense recognition may result in irregular profit margins. | |
For certain fixed-price contracts, primarily systems design, development and implementation, we generally recognize revenue based upon costs incurred to date and our anticipated gross profit. The cumulative impact of any revisions in estimated revenue and costs is recognized in the period in which the facts that give rise to the revision become known. Provisions for estimated losses on incomplete contracts are provided for in full in the period in which such losses become known. This policy may result in revenues being recognized at different points from amounts being billable. Where the Company enters into contracts where significant uncertainty exists over the ability of management to estimate the future costs, the Company will typically defer all revenue until such time as future costs are estimable or the system implementation is complete. | |
Revenue on time and materials contracts is recognized based on hours worked and expenses incurred. | |
Where contracts have multiple deliverables, we evaluate these deliverables at the inception of each contract and as each item is delivered. As part of this evaluation, we consider whether a delivered item has value to a customer on a stand-alone basis and whether the delivery of the undelivered items is considered probable and substantially within our control, if a general right of return exists. Where deliverables, or groups of deliverables, have both of these characteristics, we treat each deliverable item as a separate element in the arrangement, allocate a portion of the allocable arrangement consideration using the relative selling price method to each element and apply the relevant revenue recognition guidance to each element. | |
Sales and purchases in jurisdictions subject to indirect taxes, such as value added tax, are recorded net of tax collected and paid. | |
(f) Cash and cash equivalents | |
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Where the Company is obliged to hold cash balances as collateral for lease, credit card or letter of credit arrangements, or where MAXIMUS holds funds on behalf of clients, this balance is not considered to be cash and cash equivalents but is reported as restricted cash. | |
(g) Accounts receivable and allowance for doubtful accounts | |
Accounts receivable are recorded at their face amount less an allowance for doubtful accounts. We maintain an allowance for doubtful accounts at an amount we estimate to be sufficient to cover the risk of collecting less than full payment on our receivables. On a regular basis, we re-evaluate our client receivables, especially receivables that are past due, and reassess our allowance for doubtful accounts based on specific client collection issues. | |
(h) Business combinations and goodwill | |
The purchase price of an acquired business is allocated to tangible assets and separately identifiable intangible assets acquired less liabilities assumed based upon their respective fair values. The excess balance is recorded as goodwill. Costs incurred directly related to an acquisition, including legal, accounting and valuation services, are expensed as incurred. | |
The separately identifiable intangible assets are amortized over useful lives estimated at the time of the business combination. | |
Goodwill is not amortized but is subject to impairment testing on an annual basis, or more frequently if impairment indicators arise. Impairment testing is performed at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment (the component level) if discrete financial information is prepared and reviewed regularly by segment management. However, components are aggregated if they have similar economic characteristics. The evaluation is performed by comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of the reporting unit. If the fair value of the reporting unit exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds the fair value, the goodwill of the reporting unit may be impaired. | |
The Company performs its annual impairment test as of July 1 of each year. At July 1, 2013, the Company performed the annual impairment test and determined that there had been no impairment of goodwill. In performing this assessment, the Company utilizes an income approach. Such an approach requires estimation of future operating cash flows including business growth, utilization of working capital and discount rates. The valuation of the business as a whole is compared to the Company's market value at the date of the test in order to verify the calculation. | |
In 2011, the Financial Accounting Standards Board issued new accounting guidance that simplifies goodwill impairment tests. The new guidance states that a "qualitative" assessment may be performed to determine whether further impairment testing is necessary. We have adopted this accounting standard during this current fiscal year but we have not changed our methodology in performing our goodwill impairment test. | |
(i) Long-lived assets (excluding goodwill) | |
Property and equipment is recorded at cost. Depreciation is recorded over the assets' respective useful economic lives, which are not to exceed 39.5 years for the Company's buildings and seven years for office furniture and equipment. Leasehold improvements are amortized over the shorter of their useful life or the remaining term of the lease. Repairs and maintenance costs are expensed as incurred. | |
All of the Company's capitalized software represents development costs for software that is intended for the Company's internal use. Direct costs of time and material 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 to eight years. Costs incurred for upgrades and enhancements that do not result in additional functionality are expensed as incurred. | |
Deferred contract costs consist of contractually recoverable direct set-up costs relating to long-term service contracts. These costs include direct and incremental costs incurred prior to the commencement of us providing service to enable us to provide the contracted services to our customer. Such costs are expensed over the period services are provided. | |
The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. Our review is based on our projection of the undiscounted future operating cash flows of the related customer project. To the extent such projections indicate that future undiscounted cash flows are not sufficient to recover the carrying amount, we recognize a non-cash impairment charge to reduce the carrying amount to equal projected future discounted cash flows. No impairment charges were recorded in the three years ending September 30, 2013. | |
(j) Legal and settlement expense (recovery), net | |
Legal and settlement expense (recovery), net consists of costs, net of reimbursed insurance claims, related to significant legal settlements and non-routine legal matters, including future probable legal costs estimated to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in selling, general and administrative expense. | |
(k) 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. | |
The Company recognizes 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 which has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant tax authority. | |
(l) 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 income on the consolidated balance sheet. Gains and losses from foreign currency transactions are included in interest and other income and are typically immaterial. | |
(m) Contingencies | |
From time to time, we are involved in legal proceedings, including contract and employment claims, in the ordinary course of business. We assess the likelihood of any adverse judgments or outcomes to these contingencies, as well as potential ranges of probable losses and establish reserves accordingly. The amount of reserves required may change in future periods due to new developments in each matter or changes in approach to a matter such as a change in settlement strategy. | |
(n) Reclassifications | |
Certain financial results have been reclassified to conform to the current year presentation. | |
The Company corrected an immaterial balance sheet classification error in the accounting for the repurchase of common stock, which resulted in the reduction of the previously reported amounts of treasury stock and retained earnings by $429.6 million at September 30, 2012. | |
The Company corrected an immaterial balance sheet classification error in the accounting for deferred revenue and costs of underlying associated contracts, which resulted in a reclassification of approximately $14.5 million from current deferred revenue to long-term deferred revenue and $5.5 million of prepayments to other long-term assets as of September 30, 2012. | |
Business_segments
Business segments | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business segments | ' | ||||||||||
Business segments | ' | ||||||||||
2. Business segments | |||||||||||
The Company is organized and managed based upon the services it provides. We operate in two business segments, Health Services and Human Services. The results of these segments for the three years ended September 30, 2013 are shown below (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Revenue: | |||||||||||
Health Services | $ | 862,879 | $ | 671,181 | $ | 565,881 | |||||
Human Services | 468,400 | 378,964 | 363,752 | ||||||||
Total | $ | 1,331,279 | $ | 1,050,145 | $ | 929,633 | |||||
Gross Profit: | |||||||||||
Health services | $ | 248,100 | $ | 172,456 | $ | 147,239 | |||||
Human Services | 137,933 | 115,487 | 106,412 | ||||||||
Total | $ | 386,033 | $ | 287,943 | $ | 253,651 | |||||
Selling, general and administrative expense: | |||||||||||
Health Services | $ | 118,266 | $ | 91,837 | $ | 72,524 | |||||
Human Services | 79,842 | 65,565 | 59,590 | ||||||||
Corporate / Other | (249 | ) | — | (56 | ) | ||||||
Total | $ | 197,859 | $ | 157,402 | $ | 132,058 | |||||
Operating income from continuing operations (before income taxes): | |||||||||||
Health Services | $ | 129,834 | $ | 80,619 | $ | 74,715 | |||||
Human Services | 58,091 | 49,922 | 46,822 | ||||||||
Corporate / Other | 249 | — | 56 | ||||||||
Acquisition-related expenses and legal and settlement recovery (expense), net | (1,966 | ) | (2,966 | ) | 808 | ||||||
Total | $ | 186,208 | $ | 127,575 | $ | 122,401 | |||||
Depreciation and amortization: | |||||||||||
Health Services | $ | 17,438 | $ | 14,257 | $ | 12,120 | |||||
Human Services | 13,722 | 8,790 | 7,842 | ||||||||
Corporate / Other | 4,656 | 3,413 | 2,883 | ||||||||
Total | $ | 35,816 | $ | 26,460 | $ | 22,845 | |||||
The Company operates primarily in the United States, Australia, Canada, the United Kingdom and Saudi Arabia. | |||||||||||
Revenues for the Company were distributed as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
United States | $ | 999,419 | $ | 775,871 | $ | 630,812 | |||||
Australia | 157,383 | 163,482 | 176,814 | ||||||||
Rest of World | 174,477 | 110,792 | 122,007 | ||||||||
Total | $ | 1,331,279 | $ | 1,050,145 | $ | 929,633 | |||||
Identifiable assets for the segments are shown below (in thousands): | |||||||||||
Year Ended | |||||||||||
September 30 | |||||||||||
2013 | 2012 | ||||||||||
Health Services | $ | 518,914 | $ | 266,017 | |||||||
Human Services | 221,604 | 305,376 | |||||||||
Corporate / Other | 117,460 | 123,900 | |||||||||
Total | $ | 857,978 | $ | 695,293 | |||||||
Total long-lived assets of the Company, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands): | |||||||||||
Year Ended | |||||||||||
September 30 | |||||||||||
2013 | 2012 | ||||||||||
United States | $ | 88,812 | $ | 56,188 | |||||||
Canada | 24,135 | 24,110 | |||||||||
Australia | 9,459 | 10,358 | |||||||||
Rest of World | 6,074 | 4,752 | |||||||||
Total | $ | 128,480 | $ | 95,408 | |||||||
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings per share | ' | ||||||||||
Earnings per share | ' | ||||||||||
3. Earnings per share | |||||||||||
All common stock amounts have been adjusted for the two-for-one stock split in June 2013. | |||||||||||
The following table sets forth the components of basic and diluted earnings per share (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator: | |||||||||||
Income from continuing operations | $ | 117,125 | $ | 76,099 | $ | 82,142 | |||||
Income (loss) from discontinued operations | (394 | ) | 34 | (974 | ) | ||||||
Net income | $ | 116,731 | $ | 76,133 | $ | 81,168 | |||||
Denominator: | |||||||||||
Weighted average shares outstanding | 68,165 | 67,734 | 68,834 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee stock options and unvested restricted stock awards | 1,728 | 1,877 | 2,228 | ||||||||
Denominator for diluted earnings per share | 69,893 | 69,611 | 71,062 | ||||||||
Certain unvested restricted stock units have been excluded from the calculation of diluted earnings per share as the effect of including them would have been anti-dilutive. The number of such awards did not exceed 30,000 for any of the three years ended September 30, 2013. | |||||||||||
Business_combinations
Business combinations | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business combinations | ' | ||||||||||
Business combinations | ' | ||||||||||
4. Business combinations | |||||||||||
Health Management Limited | |||||||||||
On July 1, 2013 (the acquisition date), the Company acquired 100% of the share capital of Health Management Limited (HML) for total consideration of $77.9 million (£51.1 million). The consideration was comprised of $71.4 million (£46.9 million) in cash and 202,972 shares of MAXIMUS stock worth $6.4 million (£4.2 million). In addition, the Company incurred $1.2 million of expenses directly related to the transaction, including legal fees, due diligence expenses and duty related to the transfer of assets. These fees have been recorded as acquisition-related expenses. | |||||||||||
HML provides independent health assessments within the United Kingdom. MAXIMUS acquired HML, among other reasons, to expand the Company's independent medical assessment business and to establish a strong presence in the United Kingdom health services market. The acquired assets and business have been integrated into the Company's Health Services Segment. | |||||||||||
The assets and liabilities of HML were recorded in the Company's financial statements at their fair values at the acquisition date as follows (in thousands): | |||||||||||
Preliminary Purchase | |||||||||||
Price Accounting | |||||||||||
Cash consideration, net of cash acquired | $ | 71,435 | |||||||||
Stock consideration | 6,425 | ||||||||||
Purchase consideration, net of cash acquired | $ | 77,860 | |||||||||
Accounts receivable and unbilled receivables | $ | 7,671 | |||||||||
Other current assets | 1,382 | ||||||||||
Property and equipment | 2,752 | ||||||||||
Intangible assets | 20,542 | ||||||||||
Total identifiable assets acquired | 32,347 | ||||||||||
Accounts payable and other liabilities | 6,228 | ||||||||||
Deferred revenue | 1,149 | ||||||||||
Current income tax liability | 612 | ||||||||||
Deferred tax liability | 4,814 | ||||||||||
Total liabilities assumed | 12,803 | ||||||||||
Net identifiable assets acquired | 19,544 | ||||||||||
Goodwill | 58,316 | ||||||||||
Net assets acquired | $ | 77,860 | |||||||||
Management is still in the process of completing certain assessments of fair value of these assets and liabilities, including the assessment of the fair value of intangible assets acquired. The excess of the acquisition date fair value of consideration over the estimated fair value of the net assets acquired will be recorded as goodwill. The Company considers the goodwill to represent benefits that are expected to be realized as a result of the business combination, including, but not limited to, the assembled workforce and the benefit of the enhanced knowledge and capabilities of HML. Goodwill is not expected to be deductible for tax purposes. | |||||||||||
The valuation of the intangible assets acquired is summarized below (in thousands). | |||||||||||
Useful life | Fair value | ||||||||||
Customer relationships | 20 years | $ | 19,933 | ||||||||
Technology-based intangible assets | 2 years | 609 | |||||||||
Total intangible assets | $ | 20,542 | |||||||||
The weighted average amortization period is 19.5 years. | |||||||||||
Our consolidated statement of operations includes $14.1 million of revenue and $0.5 million of income from continuing operations for the year ended September 30, 2013 generated by the acquired HML business. | |||||||||||
The following table presents certain results for the Company for the year ended September 30, 2013 as though the acquisition of HML had occurred on October 1, 2011. The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the results of the Company if the acquisition had taken place at this time. The pro forma results presented include amortization charges for acquired intangible assets, adjustments to interest income foregone, the effect of calculating the fair value of acquired deferred revenue and related tax effects, as well as excluding the related acquisition expenses for fiscal year 2013 (in thousands). | |||||||||||
Unaudited pro forma results | |||||||||||
for the year ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Revenue | $ | 1,368,399 | $ | 1,093,389 | |||||||
Income from continuing operations | 120,182 | 77,469 | |||||||||
Policy Studies, Inc. | |||||||||||
On April 30, 2012 (the PSI acquisition date), the Company acquired 100% of the share capital of PSI Services Holding, Inc. and its wholly-owned subsidiary, Policy Studies, Inc. (PSI) for cash consideration of $63.4 million. | |||||||||||
PSI supports government clients in the administration of a number of health and human services programs exclusively within the United States. MAXIMUS acquired PSI, among other reasons, to strengthen its leadership in the administration of public health and human services programs. The acquired assets and business have been integrated into the Company's Health Services and Human Services Segments. | |||||||||||
The assets and liabilities of PSI are recorded in the Company's financial statements at their fair values as of the PSI acquisition date. An initial valuation was performed at September 30, 2012 and this valuation has been updated through September 30, 2013 (below, in thousands): | |||||||||||
Purchase Price Allocation | |||||||||||
Updated through September 30, 2012 | Adjustments | Updated through September 30, 2013 | |||||||||
Accounts receivable and unbilled receivables | $ | 23,017 | $ | — | $ | 23,017 | |||||
Other current assets | 9,527 | — | 9,527 | ||||||||
Deferred income taxes | 1,931 | 198 | 2,129 | ||||||||
Property and equipment | 6,411 | — | 6,411 | ||||||||
Other assets | 1,332 | — | 1,332 | ||||||||
Intangible assets | 22,183 | — | 22,183 | ||||||||
Total identifiable assets acquired | 64,401 | 198 | 64,599 | ||||||||
Accounts payable and other liabilities | 20,666 | — | 20,666 | ||||||||
Deferred revenue | 19,696 | 79 | 19,775 | ||||||||
Total liabilities assumed | 40,362 | 79 | 40,441 | ||||||||
Net identifiable assets acquired | 24,039 | 119 | 24,158 | ||||||||
Goodwill | 39,161 | 129 | 39,290 | ||||||||
Net assets acquired | $ | 63,200 | $ | 248 | $ | 63,448 | |||||
The Company has completed its valuation of the assets and liabilities acquired. The identifiable assets acquired and liabilities assumed were recognized and measured as of the PSI acquisition date based upon their estimated fair values. The excess of the acquisition date fair value of the consideration over the estimated fair value of the net assets acquired was recorded as goodwill and allocated to the Company's two segments, Health Services and Human Services, based upon the respective valuations of the businesses. The Company considers the goodwill to represent a number of potential strategic and financial benefits that are expected to be realized as a result of the acquisition, including, but not limited to, the assembled workforce and the addition of new capabilities within MAXIMUS' existing business. Goodwill is not expected to be deductible for tax purposes. | |||||||||||
DeltaWare Systems, Inc. | |||||||||||
On February 10, 2010 (the DeltaWare acquisition date), the Company acquired 100% of the share capital of DeltaWare Systems, Inc. (DeltaWare). | |||||||||||
As part of the acquisition agreement, the Company must pay the former owners of DeltaWare up to four million Canadian Dollars ($3.9 million). These payments, considered contingent consideration, will be made based upon the Company making sales of DeltaWare's products in particular geographic markets prior to December 2016. The Company has recorded a long-term liability of $0.4 million which represents the payment that management assesses will likely be paid. In the event that such sales are anticipated by the Company, this could result in an increase to this liability based upon the size and location of the sales. No such sales have been made to date and the likelihood of future sales between this time and December 2016 is considered low. Management reviews the likelihood of future sales on a quarterly basis and, to the extent that sales opportunities are identified, proposals submitted or contracts won, the Company updates its probability weighted assessment of payment. Changes in this assessment will result in an expense or credit to earnings. The contingent consideration payable for any single contract signed would be based upon the population of the area served but would be capped at one million Canadian Dollars per sale. As the inputs required for the valuation of this liability require significant judgment, they are considered to be Level 3 inputs under the Financial Accounting Standards Board's classification of assets and liabilities subject to fair value measurement. | |||||||||||
The effect on the financial statements is summarized below (in thousands): | |||||||||||
Contingent | |||||||||||
consideration | |||||||||||
Balance at September 30, 2012 | $ | 406 | |||||||||
Foreign currency translation | (18 | ) | |||||||||
Balance at September 30, 2013 | $ | 388 | |||||||||
Concentrations_of_credit_risk_
Concentrations of credit risk and major customers | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Concentrations of credit risk and major customers | ' | ||||||||||
Concentrations of credit risk and major customers | ' | ||||||||||
5. Concentrations of credit risk and major customers | |||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of accounts receivable, billed and unbilled. | |||||||||||
The Company operates predominantly in the United States. Revenue from foreign-based projects and offices was 25%, 26% and 32% of total revenue for the years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||
In the year ended September 30, 2013, approximately 56% of our total revenue was derived from state government agencies whose programs received significant federal funding, 24% from foreign government agencies, 12% from U.S.-based federal government agencies, and 8% from other sources including local municipalities and commercial customers. Management believes that the credit risk associated with its receivables is limited due to the credit worthiness of these customers. | |||||||||||
During fiscal year 2013, the Company had three customers who each provided more than 10% of the Company's annual revenues: the State of Texas, the United States Federal Government and the Commonwealth of Australia. Revenue from Texas and the United States Federal Government was principally within the Health Services Segment. Revenue from Australia was exclusively within the Human Services Segment. The proportion of revenue recognized from customers providing in excess of 10% of the Company's consolidated revenues for each of the three years ended September 30, 2013 was as follows: | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Texas | 14 | % | 18 | % | 16 | % | |||||
Commonwealth of Australia | 12 | % | 16 | % | 19 | % | |||||
United States Federal | 12 | % | * | 10 | % | ||||||
California | * | 10 | % | 11 | % | ||||||
* | |||||||||||
Entity provided less than 10% of the Company's consolidated revenues in this year. | |||||||||||
Accounts_receivable_reserve
Accounts receivable reserve | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accounts receivable reserve | ' | ||||||||||
Accounts receivable reserve | ' | ||||||||||
6. Accounts receivable reserve | |||||||||||
Changes in the reserves against current billed accounts receivable were as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 3,975 | $ | 3,265 | $ | 1,845 | |||||
Additions to reserve | 2,334 | 2,061 | 3,063 | ||||||||
Deductions | (2,481 | ) | (1,351 | ) | (1,643 | ) | |||||
Balance at end of year | $ | 3,828 | $ | 3,975 | $ | 3,265 | |||||
In evaluating the net realizable value of accounts receivable, the Company considers such factors as current economic trends, customer credit-worthiness, and changes in the customer payment terms and collection trends. Changes in the assumptions used in analyzing a specific account receivable may result in a reserve being recognized in the period in which the change occurs. | |||||||||||
At September 30, 2013 and 2012, $8.3 million and $3.2 million of our billed receivables related to amounts pursuant to contractual retainage provisions. We anticipate that the majority of the fiscal 2013 balance will be collected during the 2014 fiscal year. | |||||||||||
Goodwill_and_intangible_assets
Goodwill and intangible assets | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and intangible assets | ' | |||||||||||||||||||
Goodwill and intangible assets | ' | |||||||||||||||||||
7. Goodwill and intangible assets | ||||||||||||||||||||
Changes in goodwill for the years ended September 30, 2013 and 2012 are as follows (in thousands): | ||||||||||||||||||||
Health Services | Human Services | Total | ||||||||||||||||||
Balance as of September 30, 2011 | $ | 43,242 | $ | 28,081 | $ | 71,323 | ||||||||||||||
Goodwill acquired with PSI | 19,898 | 19,263 | 39,161 | |||||||||||||||||
Foreign currency translation | 377 | 1,171 | 1,548 | |||||||||||||||||
Balance as of September 30, 2012 | 63,517 | 48,515 | 112,032 | |||||||||||||||||
Goodwill acquired with HML | 58,316 | — | 58,316 | |||||||||||||||||
Adjustment to goodwill acquired with PSI | 65 | 64 | 129 | |||||||||||||||||
Foreign currency translation | 3,198 | (1,808 | ) | 1,390 | ||||||||||||||||
Balance as of September 30, 2013 | $ | 125,096 | $ | 46,771 | $ | 171,867 | ||||||||||||||
There have been no impairment charges in our goodwill related to continuing operations. | ||||||||||||||||||||
The following table sets forth the components of intangible assets (in thousands): | ||||||||||||||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||||||||||||||
Cost | Accumulated | Intangible | Cost | Accumulated | Intangible | |||||||||||||||
Amortization | Assets, net | Amortization | Assets, net | |||||||||||||||||
Customer contracts and relationships | $ | 39,243 | $ | 3,953 | $ | 35,290 | $ | 20,167 | $ | 3,082 | $ | 17,085 | ||||||||
Technology-based intangible assets | 9,583 | 5,974 | 3,609 | 9,114 | 4,909 | 4,205 | ||||||||||||||
Trademarks and trade names | 4,421 | 1,303 | 3,118 | 4,450 | 497 | 3,953 | ||||||||||||||
Non-compete arrangements | 243 | 221 | 22 | 254 | 167 | 87 | ||||||||||||||
Total | $ | 53,490 | $ | 11,451 | $ | 42,039 | $ | 33,985 | $ | 8,655 | $ | 25,330 | ||||||||
The intangible assets include $3.4 million of fully amortized technology-based assets still in use by the Company. The Company's intangible assets have a weighted average remaining life of 12.6 years, comprising 14.2 years for customer contracts and relationships, 4.1 years for technology-based intangible assets, 3.9 years for trademarks and trade names and 0.3 years for non-compete arrangements. Amortization expense for the years ended September 30, 2013, 2012 and 2011 was $4.9 million, $2.7 million and $2.2 million, respectively. Future amortization expense is estimated as follows (in thousands): | ||||||||||||||||||||
Future | ||||||||||||||||||||
amortization | ||||||||||||||||||||
expense | ||||||||||||||||||||
Year ending September 30, 2014 | $ | 5,322 | ||||||||||||||||||
Year ending September 30, 2015 | 5,165 | |||||||||||||||||||
Year ending September 30, 2016 | 4,865 | |||||||||||||||||||
Year ending September 30, 2017 | 4,466 | |||||||||||||||||||
Year ending September 30, 2018 | 3,768 |
Property_and_equipment
Property and equipment | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and equipment | ' | |||||||
Property and equipment | ' | |||||||
8. Property and equipment | ||||||||
Property and equipment, at cost, consists of the following (in thousands): | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Land | $ | 1,738 | $ | 1,800 | ||||
Building and improvements | 11,661 | 11,588 | ||||||
Office furniture and equipment | 149,796 | 107,859 | ||||||
Leasehold improvements | 17,870 | 20,263 | ||||||
181,065 | 141,510 | |||||||
Less: Accumulated depreciation and amortization | (103,355 | ) | (82,712 | ) | ||||
Total property and equipment, net | $ | 77,710 | $ | 58,798 | ||||
Fixed asset depreciation expense for the years ended September 30, 2013, 2012 and 2011 was $26.3 million, $18.8 million and $15.1 million, respectively. | ||||||||
Capitalized_software
Capitalized software | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Capitalized software | ' | |||||||
Capitalized software | ' | |||||||
9. Capitalized software | ||||||||
Capitalized software consists of the following (in thousands): | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Capitalized software | $ | 64,189 | $ | 46,767 | ||||
Less: Accumulated amortization | (23,733 | ) | (19,377 | ) | ||||
Total Software development costs, net | $ | 40,456 | $ | 27,390 | ||||
Capitalized software amortization expense for the years ended September 30, 2013, 2012 and 2011 was $4.6 million, $4.9 million and $5.5 million, respectively. | ||||||||
Deferred_contract_costs
Deferred contract costs | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred contract costs | ' | |||||||
Deferred contract costs | ' | |||||||
10. Deferred contract costs | ||||||||
Deferred contract costs consist of contractually recoverable direct set-up costs relating to long-term service contracts in progress. These costs include direct and incremental costs incurred prior to the commencement of us providing contracted services to our customers. Deferred contract costs consist of the following (in thousands): | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Deferred contract costs | $ | 23,623 | $ | 16,147 | ||||
Less: accumulated amortization | (9,305 | ) | (6,863 | ) | ||||
Total deferred contract costs, net | $ | 14,318 | $ | 9,284 | ||||
Credit_facilities
Credit facilities | 12 Months Ended |
Sep. 30, 2013 | |
Credit facilities | ' |
Credit facilities | ' |
11. Credit facilities | |
On March 15, 2013, the Company entered into an unsecured five-year revolving credit agreement (the "Credit Agreement"). The Credit Agreement amends and restates the Company's existing revolving credit agreement entered into in January 2008. The Credit Agreement provides for a revolving line of credit up to $100 million which may be used for revolving loans; swingline loans, subject to a sublimit of $5 million; and to request letters of credit, subject to a sublimit of $30 million. The line of credit is available for general corporate purposes, including working capital expenses, capital expenditures and acquisitions. The arrangement terminates on March 15, 2018, at which time all outstanding borrowings must be repaid. | |
At September 30, 2013, the Company's only borrowings under the Credit Agreement were five letters of credit totaling $15.4 million. Each of these letters of credit may be called by customers in the event that the Company defaults under the terms of a contract, the probability of which we believe is remote. In addition, two letters of credit totaling $3.0 million are held with another financial institution to cover similar obligations. | |
The Credit Agreement requires the Company to comply with certain financial covenants including a maximum total leverage ratio and a minimum fixed charge coverage ratio. The Company was in compliance with all covenants as of September 30, 2013. The obligations of the Company under the Credit Agreement are guaranteed by material domestic subsidiaries of the Company. The Credit Facility is currently unsecured. In the event that the Company's total leverage ratio exceeds 2.5:1.0 or the Company incurs a certain level of indebtedness outside of the Credit Agreement, the Credit Agreement will become secured by the assets of the Company and certain of its subsidiaries. At September 30, 2013, our total leverage ratio was less than 0.1:1.0. | |
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 the Company's leverage and varies between 0.15% and 0.3%. Borrowings under the Credit Agreement bear interest at our choice at either (a) a Base Rate plus a margin that varies between 0.0% and 0.75% per year, (b) a Eurocurrency Rate plus an applicable margin that varies between 1.0% and 1.75% per year or (c) an Index Rate plus an applicable margin which varies between 1.0% and 1.75% per year. The Base Rate, Eurocurrency Rate and Index Rate are defined by the Credit Agreement and the applicable percentages are based upon the Company's leverage rate at the time of the borrowing. At September 30, 2013, the Company would utilize the lowest available applicable margins listed above. | |
In addition to this credit facility, the Company has a loan agreement with the Atlantic Innovation Fund of Canada. This provided a loan of 1.8 million Canadian Dollars, the proceeds of which were required to be used for specific technology-based research and development. The loan has no interest charge. At September 30, 2013, this balance was repayable in 35 remaining quarterly installments. At September 30, 2013, $1.5 million (1.5 million Canadian Dollars) was outstanding under this agreement. | |
Certain contracts require us to provide a surety bond as a guarantee of performance. At September 30, 2013 and 2012, the Company had performance bond commitments totaling $50.8 million and $48.0 million, respectively. These bonds are typically renewed annually and remain in place until the contractual obligations have been 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. | |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended |
Sep. 30, 2013 | |
Commitments and contingencies | ' |
Commitments and contingencies | ' |
12. Commitments and contingencies | |
Litigation | |
The Company is involved in various legal proceedings, including the matters described below, in the ordinary course of its business. | |
In March 2009, a state Medicaid agency asserted a claim against MAXIMUS, related to a discontinued business line, in the amount of $2.3 million in connection with a contract MAXIMUS had through February 1, 2009 to provide Medicaid administrative claiming services to school districts in the state. MAXIMUS entered into separate agreements with the school districts under which MAXIMUS helped the districts prepare and submit claims to the state Medicaid agency which, in turn, submitted claims for reimbursement to the United States Federal Government. No legal action has been initiated. The state has asserted that its agreement with MAXIMUS requires the Company to reimburse the state for the amounts owed to the Federal Government. However, the Company's agreements with the school districts require them to reimburse MAXIMUS for such payments and therefore MAXIMUS believes the school districts are responsible for any amounts disallowed by the state Medicaid agency or the Federal Government. Accordingly, the Company believes its exposure in this matter is limited to its fees associated with this work and that the school districts will be responsible for the remainder. MAXIMUS has exited the federal health care claiming business and no longer provides the services at issue in this matter. | |
In 2008, MAXIMUS sold the SchoolMAX student information system business line as part of the divestiture of the MAXIMUS Education Systems division. In 2012, a school district ("District") which was a SchoolMAX client filed a formal arbitration notice alleging that MAXIMUS and the buyer failed to (i) use best practices in developing the software and (ii) deliver and test product releases as required by the contract. The District contended that those failures resulted in damages of at least $10 million. In December 2012, the arbitration panel denied the District's claims in their entirety. Costs related to the arbitration proceeding have been included within discontinued operations. The District subsequently filed a motion to vacate the decision of the arbitration panel which was denied by the court in July 2013. The District has appealed that ruling. Separately, in late 2012, the District asserted that MAXIMUS had defrauded the District in 2007 or 2008 by misrepresenting its intentions regarding the sale of the Education Systems division. That allegation was not part of the arbitration, and no formal claim or lawsuit has been filed. The company believes it has a number of defenses to that allegation and would contest it vigorously if it were asserted. | |
Acquired loss-making contract | |
As part of the acquisition of PSI in April 2012, the Company acquired a systems-integration contract that was anticipated to record significant future losses. The fair value of the obligation to provide these services at a loss was calculated and recorded on the Company's balance sheet at acquisition as deferred revenue of $15.1 million. | |
The contract was an arrangement that included both significant production and customization of software as well as postcontract customer support for these services. As MAXIMUS was unable to estimate the costs of providing these services, management deferred all revenue and costs related until to service in anticipation of recognizing revenue at the commencement of the postcontract customer support services. | |
In February 2013, the Company received a formal notice of termination for convenience for this contract. The work was terminated as part of a broad, state-wide initiative to focus resources on a select number of projects. At the termination of this agreement, the Company reimbursed the client for certain funds received and undertook to provide services in consideration for the termination. All other obligations to provide services have been extinguished and no material future costs will be incurred. Accordingly, revenue of $16.0 million has been recognized in the year ended September 30, 2013. In addition, costs of $5.1 million, including costs which had been deferred, were recognized in the same period for an operating profit of $10.9 million. | |
Flexible New Deal contract liabilities and contingent gains | |
In August 2009, the Company commenced work for the United Kingdom government as a provider of services under the "Flexible New Deal," a welfare-to-work initiative. The work was performed in the Company's Human Services segment. This initiative was terminated for all contract providers during fiscal year 2011 and replaced with the Work Programme, under which MAXIMUS also performs services. As a consequence of the termination of the Flexible New Deal, MAXIMUS incurred certain costs related to the termination of leases, including property leases for offices that are no longer occupied by the Company but for which the Company then retained responsibility for future lease payments. For properties which were exited, the Company recognized a liability for future lease rentals, service charges and property taxes for which it was liable, offset by anticipated future sublease rentals. The Company initially recorded a reserve of $0.5 million at September 30, 2011 to cover these liabilities, which reserve was fully utilized by September 30, 2012. | |
As part of the Flexible New Deal contract, MAXIMUS was entitled to reimbursement for costs incurred as a consequence of early termination, as well as a contract settlement for payments the Company would have received for realizing certain long-term goals under the contract. During the year ended September 30, 2012, MAXIMUS received a payment of $2.7 million for revenue foregone and $1.7 million of cost recoveries, net of subcontractor expenses. | |
Contracts | |
During the year ended September 30, 2012, the Company recorded a gain of $6.8 million on a fixed-price contract owing to changes in our estimate to complete the work. During the year ended September 30, 2011, the Company recorded a charge of $7.3 million on the same contract. The Company has no further liabilities relating to anticipated losses on this contract. | |
During the year ended September 30, 2012, the Company signed an amendment on a significant Health Services contract. As a consequence, the Company recognized additional revenue in the period of $10.2 million. | |
Employment agreements | |
Subsequent to September 30, 2013, the Company signed an employment agreement with its chief executive officer with a term ending in fiscal 2018. | |
Collective bargaining agreements | |
Approximately 12% of our employees are covered by collective bargaining agreements or similar arrangements. | |
Leases
Leases | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Leases | ' | ||||||||||
Leases | ' | ||||||||||
13. Leases | |||||||||||
The Company leases office space and equipment under various operating leases. Lease expense for the years ended September 30, 2013, 2012 and 2011 was $49.0 million, $37.6 million and $32.0 million respectively. | |||||||||||
Minimum future payments under leases in effect as of September 30, 2013 are as follows (in thousands): | |||||||||||
Operating lease commitments | |||||||||||
Office space | Equipment | Total | |||||||||
Year ended September 30, | |||||||||||
2014 | $ | 50,573 | $ | 1,833 | $ | 52,406 | |||||
2015 | 41,736 | 1,242 | 42,978 | ||||||||
2016 | 26,525 | 556 | 27,081 | ||||||||
2017 | 21,508 | 335 | 21,843 | ||||||||
2018 | 11,411 | 208 | 11,619 | ||||||||
Thereafter | 16,031 | — | 16,031 | ||||||||
Total minimum lease payments | $ | 167,784 | $ | 4,174 | $ | 171,958 | |||||
Employee_benefit_plans_and_def
Employee benefit plans and deferred compensation | 12 Months Ended |
Sep. 30, 2013 | |
Employee benefit plans and deferred compensation | ' |
Employee benefit plans and deferred compensation | ' |
14. Employee benefit plans and deferred compensation | |
The Company has 401(k) plans for the benefit of all employees who meet certain eligibility requirements. The plans provide for Company match, specified Company contributions, and discretionary Company contributions. During the years ended September 30, 2013, 2012 and 2011, the Company contributed $3.8 million, $3.0 million and $3.0 million to the 401(k) plans, respectively. | |
The Company also has 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 of the Company. The balance sheet at September 30, 2013 includes $1.5 million of cash and cash equivalents; an asset of $10.3 million related to life insurance assets, which are held at cash surrender value; and liabilities totaling $16.0 million. | |
Stock_compensation
Stock compensation | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Stock compensation | ' | ||||||||||
Stock compensation | ' | ||||||||||
15. Stock compensation | |||||||||||
All common stock amounts have been adjusted for the two-for-one stock split in June 2013. | |||||||||||
In March 2012, the Company's shareholders approved the 2011 Equity Incentive Plan which superseded the Company's 1997 Equity Incentive Plan. Under these plans, the Company is authorized to grant stock options, restricted stock units ("RSUs") and other forms of equity awards to officers, employees and directors of the Company. At September 30, 2013, 2.8 million shares remained available for grants under the Company's stock plans. The Company typically issues new shares in satisfying its obligations under its stock plans. | |||||||||||
In recent years, the Company has granted equity awards to officers, employees and directors in the form of RSUs. Generally, RSUs issued before 2009 vest ratably over six years. RSUs issued since then vest ratably over five years. The fair value of the RSUs, based on the Company's stock price at the grant date, is expensed in equal installments over the vesting period. For the fiscal years ended September 30, 2013, 2012 and 2011, compensation expense recognized related to RSUs was $14.6 million, $12.1 million and $9.4 million, respectively. Employees who are granted RSUs also receive dividend-equivalent payments in the form of additional RSUs. However, until the shares are issued, they have no voting rights and employees may not buy or sell these RSUs. In the event that an award is forfeited, the dividend-equivalent payments received by the holder with respect to that award are also forfeited. | |||||||||||
A summary of the Company's RSU activity for the year ended September 30, 2013, is as follows: | |||||||||||
Shares | Weighted- | ||||||||||
Average | |||||||||||
Grant-Date | |||||||||||
Fair Value | |||||||||||
Non-vested shares outstanding at September 30, 2012 | 2,892,140 | $ | 13.86 | ||||||||
Granted | 566,249 | 30.66 | |||||||||
Vested | (931,993 | ) | 14.46 | ||||||||
Forfeited | (107,442 | ) | 15.88 | ||||||||
Non-vested shares outstanding at September 30, 2013 | 2,418,954 | 17.47 | |||||||||
The weighted-average grant-date fair value of RSUs granted in the years ended September 30, 2012 and 2011 was $21.00 and $15.90, respectively. The total fair value of RSUs vesting during the year was $40.8 million, $25.0 million and $14.5 million in the years ended September 30, 2013, 2012 and 2011, respectively. As of September 30, 2013, the total remaining unrecognized compensation cost related to unvested RSUs was $29.0 million. This charge is expected to be realized over 5 years, with a weighted average life of 1.6 years. | |||||||||||
Prior to fiscal year 2008, the Company granted stock options to certain employees. These were granted at exercise prices equal to the fair market value of the Company's common stock at the date of grant, vested over a period of four years and expired ten years after the date of the grant. Compensation expenses related to stock options were immaterial for all three years ended September 30, 2013. | |||||||||||
A summary of the Company's stock option activity for the year ended September 30, 2013, is as follows: | |||||||||||
Options | Weighted Average | ||||||||||
Exercise Price | |||||||||||
Outstanding at September 30, 2012 | 720,358 | $ | 8.26 | ||||||||
Exercised | (288,742 | ) | 7.5 | ||||||||
Forfeited or expired | (10,152 | ) | 5.54 | ||||||||
Outstanding and exercisable at September 30, 2013 | 421,464 | 8.85 | |||||||||
The intrinsic value of outstanding and exercisable stock options at September 30, 2013 was $15.3 million with a weighted average remaining life of 2.3 years. | |||||||||||
The following table summarizes information pertaining to the stock options vested and exercised for the years presented (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Aggregate intrinsic value of all stock options exercised | $ | 7,081 | $ | 10,920 | $ | 15,102 | |||||
Net cash proceeds from exercise of stock options | 2,168 | 6,441 | 12,496 | ||||||||
The total income tax benefit recognized in the income statement for share-based compensation arrangements was $5.2 million, $4.3 million and $3.7 million for the fiscal years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||
Employees are permitted to forfeit a certain number of shares to cover their personal tax liability. Amounts paid to cover this liability by the Company were $8.9 million, $4.5 million and $3.5 million in the years ended September 30, 2013, 2012 and 2011. | |||||||||||
Cash flows resulting from the tax benefits generated from tax deductions in excess of the compensation costs recognized for those options and RSUs (excess tax benefits) are classified as financing cash flows. | |||||||||||
Stock_repurchase_programs
Stock repurchase programs | 12 Months Ended |
Sep. 30, 2013 | |
Stock repurchase programs | ' |
Stock repurchase programs | ' |
16. Stock repurchase programs | |
All common stock amounts have been adjusted for the two-for-one stock split in June 2013. | |
Under resolutions adopted in July 2008 and September 2010, the Board of Directors authorized the repurchase, at management's discretion, of up to an aggregate of $175.0 million of the Company's common stock. In November 2011, this plan was replaced with a new program which authorized up to $125.0 million of repurchases. The Board has also authorized the use of option exercise proceeds for the repurchase of the Company's common stock. During the years ended September 30, 2013, 2012 and 2011, the Company repurchased 974,498, 612,000 and 3,194,916 common shares at a cost of $32.5 million, $12.8 million and $57.5 million, respectively. At September 30, 2013, $97.1 million remained available for future stock repurchases. | |
Legal_and_settlement_expense_r
Legal and settlement expense (recovery), net | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Legal and settlement expense (recovery), net | ' | ||||||||||
Legal and settlement expense (recovery), net | ' | ||||||||||
17. Legal and settlement expense (recovery), net | |||||||||||
Legal and settlement expense (recovery), net consists of costs, net of reimbursed insurance claims, related to significant legal settlements and non-routine legal matters, including future probable legal costs estimated to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in selling, general and administrative expense. Expenses and recoveries for the three years ended September 30, 2013 are shown below (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Insurance recoveries | $ | (390 | ) | $ | (1,180 | ) | $ | — | |||
Employee lawsuit | — | 600 | — | ||||||||
Client indemnification | — | 490 | — | ||||||||
Other | 188 | 180 | (808 | ) | |||||||
Total | $ | (202 | ) | $ | 90 | $ | (808 | ) | |||
During fiscal year 2012, the Company agreed to settle a lawsuit brought by a former employee for $0.6 million and agreed to pay $0.5 million relating to client indemnification of funds misappropriated by a former employee. During fiscal year 2013, the Company's insurance provider reimbursed the Company for part of the latter claim. | |||||||||||
The insurance recovery in fiscal year 2012 relates to a litigation settlement in fiscal 2008. | |||||||||||
During the 2011 fiscal year, the Company reversed a legal expense previously recognized in fiscal 2010 for a matter which concluded without liability to the Company. | |||||||||||
Income_taxes
Income taxes | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Income taxes | ' | ||||||||||
Income taxes | ' | ||||||||||
18. Income taxes | |||||||||||
The Company's components of income from continuing operations before income taxes and the corresponding provision for income taxes is as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Income from continuing operations before income taxes: | |||||||||||
United States | $ | 140,371 | $ | 93,418 | $ | 66,842 | |||||
Foreign | 48,688 | 38,333 | 59,054 | ||||||||
Income from continuing operations before income taxes | $ | 189,059 | $ | 131,751 | $ | 125,896 | |||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current provision: | |||||||||||
Federal | $ | 43,460 | $ | 36,348 | $ | 20,090 | |||||
State and local | 11,257 | 9,006 | 4,484 | ||||||||
Foreign | 14,821 | 13,572 | 17,422 | ||||||||
Total current provision | 69,538 | 58,926 | 41,996 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | $ | 2,741 | $ | (1,272 | ) | $ | 1,572 | ||||
State and local | 851 | (471 | ) | 397 | |||||||
Foreign | (1,196 | ) | (1,531 | ) | (211 | ) | |||||
Total deferred tax expense (benefit) | 2,396 | (3,274 | ) | 1,758 | |||||||
Income tax expense | $ | 71,934 | $ | 55,652 | $ | 43,754 | |||||
The provision for income taxes differs from that which would have resulted from the use of the federal statutory income tax rate as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax provision at statutory rate of 35% | $ | 66,171 | $ | 46,113 | $ | 44,063 | |||||
State income taxes, net of federal benefit | 8,183 | 5,558 | 3,175 | ||||||||
Foreign taxation | (3,499 | ) | (1,950 | ) | (3,644 | ) | |||||
Permanent items | 708 | 2,808 | 314 | ||||||||
True up to prior year | — | 2,715 | — | ||||||||
Valuation allowances on net operating loss carryforwards | — | 305 | (16 | ) | |||||||
Other | 371 | 103 | (138 | ) | |||||||
Income tax expense | $ | 71,934 | $ | 55,652 | $ | 43,754 | |||||
During the year ended September 30, 2012, the Company recorded the correction of an error of $2.7 million. The Company does not believe this correction is material to its consolidated financial statements. | |||||||||||
The significant items comprising the Company's deferred tax assets and liabilities as of September 30, 2013 and 2012 are as follows (in thousands): | |||||||||||
As of September 30, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets—current: | |||||||||||
Costs deductible in future periods | $ | 21,186 | $ | 11,126 | |||||||
Deferred revenue | 10,930 | 14,543 | |||||||||
Net operating loss carryforwards | — | 811 | |||||||||
Other | 544 | — | |||||||||
Total deferred tax assets—current | 32,660 | 26,480 | |||||||||
Deferred tax liabilities—current: | |||||||||||
Accounts receivable—unbilled | 6,217 | 3,932 | |||||||||
Other | — | 341 | |||||||||
Total deferred tax liabilities—current: | 6,217 | 4,273 | |||||||||
Net deferred tax asset—current | $ | 26,443 | $ | 22,207 | |||||||
Deferred tax assets—non-current: | |||||||||||
Net operating loss carryforwards | $ | 4,080 | $ | 5,728 | |||||||
Valuation allowance on net operating loss carryforwards | (968 | ) | (1,313 | ) | |||||||
Net operating loss carryforwards net of valuation reserve | 3,112 | 4,415 | |||||||||
Deferred revenue | 10,340 | 6,737 | |||||||||
Stock compensation | 4,601 | 4,176 | |||||||||
Costs deductible in future periods | 1,528 | 1,021 | |||||||||
Other | 5,360 | 3,055 | |||||||||
Total deferred tax assets—non-current | 24,941 | 19,404 | |||||||||
Deferred tax liabilities—non-current | |||||||||||
Amortization of goodwill and intangible assets | 19,383 | 14,218 | |||||||||
Capitalized software | 9,045 | 4,701 | |||||||||
Property and equipment | 8,687 | 8,535 | |||||||||
Deferred contract costs | 2,059 | 452 | |||||||||
Other | 947 | 513 | |||||||||
Total deferred tax liability—non-current | $ | 40,121 | $ | 28,419 | |||||||
Net deferred tax liability—non-current | $ | 15,180 | $ | 9,015 | |||||||
Due to deferred tax assets and liabilities in different tax jurisdictions, the net long-term assets and liabilities are reflected on the accompanying consolidated balance sheet as follows (in thousands): | |||||||||||
As of September 30, | |||||||||||
2013 | 2012 | ||||||||||
Long-term assets | $ | 1,179 | $ | 1,369 | |||||||
Long-term liabilities | 16,359 | 10,384 | |||||||||
Net deferred tax liability—non-current | $ | 15,180 | $ | 9,015 | |||||||
At September 30, 2013, the Company's overseas subsidiaries held approximately $144 million of cumulative earnings. We do not provide for U.S. income taxes on these undistributed earnings as we do not have the intention or the need to repatriate these funds. If we were to transfer these funds to the United States, the Company could be required to accrue and pay additional taxes. We have not attempted to quantify the charges which might arise if we were to make this transaction. The charges would vary based upon tax legislation in the United States and the other overseas jurisdictions as well as the manner and timing in which MAXIMUS would make these transactions. The amount of taxes that may be applicable on earnings planned to be reinvested indefinitely outside the United States is not readily determinable given the various tax planning alternatives the Company could employ should it decide to repatriate these earnings. | |||||||||||
The Company had $6.9 million of net operating loss carryforwards in the United States at September 30, 2013, resulting in a deferred tax asset of $3.1 million. This balance relates exclusively to the losses held by PSI upon their acquisition in 2012. Although the ability of the Company to use these loss carryforwards will be restricted to an annual allowance, the Company has sufficient profits and time within the jurisdictions where losses have arisen to ensure that these losses will be utilized in full. Accordingly, no reserve has been recorded against these balances. These net operating loss carryforwards expire between 2027 and 2031. | |||||||||||
The Company had $3.9 million of net operating loss carryforwards in Canada at September 30, 2013, compared with $5.0 million at September 30, 2012. This results in a deferred tax asset of $1.0 million and $1.2 million, respectively. A reserve of $1.0 million and $1.1 million was applied to these balances at September 30, 2013 and 2012, respectively. These net operating loss carryforwards expire through 2027 to 2031. | |||||||||||
At September 30, 2012, the Company had $3.4 million of net operating loss carryforwards relating to its United Kingdom subsidiary, resulting in a current deferred tax asset of $0.8 million. No valuation reserve was recorded against this balance and it was utilized during the 2013 fiscal year. | |||||||||||
At September 30, 2012, the Company had $1.2 million of net operating loss carryforwards relating to its Saudi Arabian subsidiary, resulting in a deferred tax asset of $0.2 million. This asset was fully reserved and was utilized during the 2013 fiscal year. | |||||||||||
Cash paid for income taxes during the years ended September 30, 2013, 2012, and 2011 was $58.2 million, $44.3 million and $45.2 million, respectively. | |||||||||||
The Company accounts 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 Company's net unrecognized tax benefits totaled $1.0 million, $1.1 million and $1.2 million at September 30, 2013, 2012 and 2011, respectively. The total amount of unrecognized tax benefits that, if recognized, would affect the annual effective income tax rate was $1.0 million at September 30, 2013. | |||||||||||
The Company reports interest and penalties as a component of income tax expense. In the fiscal years ending September 30, 2013, 2012 and 2011, the Company recognized interest expense relating to unrecognized tax benefits of less than $0.1 million in each year. The net liability balance at September 30, 2013, 2012 and 2011 includes approximately $0.5 million, $0.4 million and $0.3 million, respectively, of interest and penalties. | |||||||||||
The Company recognizes and presents uncertain tax positions on a gross basis (i.e., without regard to likely offsets for deferred tax assets, deductions and/or credits that would result from payment of uncertain tax amounts). The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows (in thousands): | |||||||||||
Year Ended September 30 | |||||||||||
2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 1,059 | $ | 1,172 | $ | 1,553 | |||||
Lapse of statute of limitation | (230 | ) | (113 | ) | (381 | ) | |||||
Reductions for tax positions of prior years | (17 | ) | — | — | |||||||
Balance at end of year | $ | 812 | $ | 1,059 | $ | 1,172 | |||||
The Company files income tax returns in the United States federal jurisdiction and in various state and foreign jurisdictions. The Company is no longer subject to federal income tax examinations for years before 2010 and is no longer subject to state, and local income tax examinations by tax authorities for years before 2008. In international jurisdictions, similar rules apply to filed income tax returns, although the tax examination limitations and requirements may vary. The Company is no longer subject to audit by tax authorities for overseas jurisdictions for years prior to 2006. | |||||||||||
Quarterly_information_unaudite
Quarterly information (unaudited) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Quarterly information (unaudited) | ' | |||||||||||||
Quarterly information (unaudited) | ' | |||||||||||||
19. Quarterly information (unaudited) | ||||||||||||||
Set forth below are selected quarterly income statement data for the fiscal years ended September 30, 2013 and 2012. The Company derived this information from unaudited quarterly financial statements that include, in the opinion of Company's management, all adjustments necessary for a fair presentation of the information for such periods. Results of operations for any fiscal quarter are not necessarily indicative of results for any future period. | ||||||||||||||
Earnings per share amounts are computed independently each quarter. As a result, the sum of each quarter's earnings per share amount may not equal the total earnings per share amount for the respective year. | ||||||||||||||
All per share amounts have been adjusted for the two-for-one stock split in June 2013. | ||||||||||||||
Quarter Ended | ||||||||||||||
Dec. 31, | March 31, | June 30, | Sept. 30, | |||||||||||
2012 | 2013 | 2013 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 286,266 | $ | 326,351 | $ | 334,323 | $ | 384,339 | ||||||
Gross profit | 76,530 | 97,444 | 94,560 | 117,499 | ||||||||||
Net income | 21,316 | 31,689 | 28,100 | 35,626 | ||||||||||
Basic earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.32 | $ | 0.47 | $ | 0.41 | $ | 0.52 | ||||||
Loss from discontinued operations | (0.01 | ) | (0.01 | ) | — | — | ||||||||
Basic earnings per share | $ | 0.31 | $ | 0.46 | $ | 0.41 | $ | 0.52 | ||||||
Diluted earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.31 | $ | 0.45 | $ | 0.4 | $ | 0.51 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.45 | $ | 0.4 | $ | 0.51 | ||||||
Quarter Ended | ||||||||||||||
Dec. 31, | March 31, | June 30, | Sept. 30, | |||||||||||
2011 | 2012 | 2012 | 2012 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 239,603 | $ | 243,452 | $ | 266,353 | $ | 300,737 | ||||||
Gross profit | 59,847 | 64,766 | 78,701 | 84,629 | ||||||||||
Net income | 17,704 | 14,273 | 20,485 | 23,671 | ||||||||||
Basic earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.26 | $ | 0.21 | $ | 0.3 | $ | 0.35 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
Basic earnings per share | $ | 0.26 | $ | 0.21 | $ | 0.3 | $ | 0.35 | ||||||
Diluted earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.26 | $ | 0.21 | $ | 0.29 | $ | 0.34 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
Diluted earnings per share | $ | 0.26 | $ | 0.21 | $ | 0.29 | $ | 0.34 | ||||||
Discontinued_operations
Discontinued operations | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Discontinued operations | ' | ||||||||||
Discontinued operations | ' | ||||||||||
20. Discontinued operations | |||||||||||
During the year ended September 30, 2013, the Company incurred costs in legal proceedings related to a discontinued operation. See "Note 12. Commitments and contingencies" for more details on this matter. | |||||||||||
The Company continues to record gains on the sale of Unison MAXIMUS, Inc., a business which was sold in May 2008. The consideration for the sale included a promissory note which is fully reserved. Small payments continue to be received on this note but owing to uncertainties over the collectability of the full balance, the Company has only recorded a gain on sale where recovery is considered assured, which is typically when cash payments are received. The Company recorded gains on sale of $0.4 million, $0.1 million and $0.3 million for the years ended September 30, 2013, 2012 and 2011, respectively. | |||||||||||
The Company's results in fiscal year 2011 include the effects of the sale of our ERP business, which took place during fiscal year 2010. During fiscal year 2011, the Company resolved a dispute with the buyer of the business and recorded a pre-tax loss of $1.7 million. | |||||||||||
The following table summarizes the operating results of the discontinued operations included in the Consolidated Statements of Operations (in thousands): | |||||||||||
Year Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Loss from operations before income taxes | $ | (1,053 | ) | $ | — | $ | (219 | ) | |||
Benefit from income taxes | (418 | ) | — | (86 | ) | ||||||
Loss from discontinued operations | $ | (635 | ) | $ | — | $ | (133 | ) | |||
Gain (loss) on disposal before income taxes | $ | 398 | $ | 57 | $ | (1,390 | ) | ||||
Provision for (benefit from) income taxes | 157 | 23 | (549 | ) | |||||||
Gain/(loss) on disposal | $ | 241 | $ | 34 | $ | (841 | ) | ||||
Income (loss) from discontinued operations | $ | (394 | ) | $ | 34 | $ | (974 | ) | |||
The Company made net payments of approximately $0.7 million in fiscal 2011 related to discontinued operations. These payments principally related to the settlement of customer and employee payments following the sale of the ERP business. | |||||||||||
Related_party_transactions
Related party transactions | 12 Months Ended |
Sep. 30, 2013 | |
Related party transactions | ' |
Related party transactions | ' |
21. Related party transactions | |
Governor James R. Thompson, one of our outside directors whom the Company's Board of Directors has determined to be independent, is Senior Chairman of the law firm of Winston & Strawn in Chicago. Winston & Strawn has provided certain legal services to the Company. Governor Thompson had no personal involvement in the services provided. In 2013, 2012 and 2011, the Company paid Winston & Strawn $0.2 million, $0.3 million and $0.2 million respectively. | |
Subsequent_events
Subsequent events | 12 Months Ended |
Sep. 30, 2013 | |
Subsequent events | ' |
Subsequent events | ' |
22. Subsequent events | |
On October 4, 2013, the Company's Board of Directors declared a quarterly cash dividend of $0.045 for each share of the Company's common stock outstanding. The dividend will be paid on November 29, 2013 to shareholders of record on November 15, 2013. Based on the number of shares outstanding, the payment will be approximately $3.1 million. | |
Business_and_summary_of_signif1
Business and summary of significant accounting policies (Policies) | 12 Months Ended |
Sep. 30, 2013 | |
Business and summary of significant accounting policies | ' |
Principles of consolidation | ' |
(b) Principles of consolidation | |
The consolidated financial statements include the accounts of MAXIMUS, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of estimates | ' |
(c) Use of estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates used by the Company include estimates of profits or loss on contracts in process, estimates of collectability of receivables, evaluation of asset impairment, accrual of estimated liabilities, and valuation of acquisition-related contingent consideration liabilities. | |
Stock split | ' |
(d) Stock split | |
On April 16, 2013, the Company's Board of Directors declared a two-for-one stock split in the form of a dividend of one share for each outstanding share for shareholders of record on June 14, 2013. The additional shares were distributed on June 28, 2013. This stock-split did not affect the proportionate interests that stockholders maintained in the Company. All common stock and per share amounts throughout this document have been adjusted for the stock split. | |
Revenue recognition | ' |
(e) Revenue recognition | |
Revenue is generated from contracts with various pricing arrangements, including: | |
• | |
performance-based criteria, constituting approximately 48% of total revenue in fiscal year 2013; | |
• | |
fixed-price (29%); | |
• | |
costs incurred plus a negotiated fee ("cost-plus") (20%); and | |
• | |
time-and-materials (3%). | |
We recognize revenue on arrangements as work is performed and amounts are earned. We consider amounts to be earned once evidence of an arrangement has been obtained, services have been delivered, fees are fixed or determinable and collectability of revenue is reasonably assured. | |
We recognize revenue on performance-based contracts when earned, which generally occurs when amounts are billable to customers. This may result in revenue being recognized in irregular increments. | |
Revenue on cost-plus contracts is recognized based on costs incurred plus an estimate of the negotiated fee earned. | |
We recognize revenue on fixed-priced contracts when earned, as services are provided. Revenue is generally recognized on a straight-line basis unless evidence suggests that revenue is earned or obligations are fulfilled in a different pattern. The timing of expense recognition may result in irregular profit margins. | |
For certain fixed-price contracts, primarily systems design, development and implementation, we generally recognize revenue based upon costs incurred to date and our anticipated gross profit. The cumulative impact of any revisions in estimated revenue and costs is recognized in the period in which the facts that give rise to the revision become known. Provisions for estimated losses on incomplete contracts are provided for in full in the period in which such losses become known. This policy may result in revenues being recognized at different points from amounts being billable. Where the Company enters into contracts where significant uncertainty exists over the ability of management to estimate the future costs, the Company will typically defer all revenue until such time as future costs are estimable or the system implementation is complete. | |
Revenue on time and materials contracts is recognized based on hours worked and expenses incurred. | |
Where contracts have multiple deliverables, we evaluate these deliverables at the inception of each contract and as each item is delivered. As part of this evaluation, we consider whether a delivered item has value to a customer on a stand-alone basis and whether the delivery of the undelivered items is considered probable and substantially within our control, if a general right of return exists. Where deliverables, or groups of deliverables, have both of these characteristics, we treat each deliverable item as a separate element in the arrangement, allocate a portion of the allocable arrangement consideration using the relative selling price method to each element and apply the relevant revenue recognition guidance to each element. | |
Sales and purchases in jurisdictions subject to indirect taxes, such as value added tax, are recorded net of tax collected and paid. | |
Cash and cash equivalents | ' |
(f) Cash and cash equivalents | |
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Where the Company is obliged to hold cash balances as collateral for lease, credit card or letter of credit arrangements, or where MAXIMUS holds funds on behalf of clients, this balance is not considered to be cash and cash equivalents but is reported as restricted cash. | |
Accounts receivable and allowance for doubtful accounts | ' |
(g) Accounts receivable and allowance for doubtful accounts | |
Accounts receivable are recorded at their face amount less an allowance for doubtful accounts. We maintain an allowance for doubtful accounts at an amount we estimate to be sufficient to cover the risk of collecting less than full payment on our receivables. On a regular basis, we re-evaluate our client receivables, especially receivables that are past due, and reassess our allowance for doubtful accounts based on specific client collection issues. | |
Business combinations and goodwill | ' |
(h) Business combinations and goodwill | |
The purchase price of an acquired business is allocated to tangible assets and separately identifiable intangible assets acquired less liabilities assumed based upon their respective fair values. The excess balance is recorded as goodwill. Costs incurred directly related to an acquisition, including legal, accounting and valuation services, are expensed as incurred. | |
The separately identifiable intangible assets are amortized over useful lives estimated at the time of the business combination. | |
Goodwill is not amortized but is subject to impairment testing on an annual basis, or more frequently if impairment indicators arise. Impairment testing is performed at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment (the component level) if discrete financial information is prepared and reviewed regularly by segment management. However, components are aggregated if they have similar economic characteristics. The evaluation is performed by comparing the fair value of the relevant reporting unit to the carrying value, including goodwill, of the reporting unit. If the fair value of the reporting unit exceeds the carrying value, no impairment loss is recognized. However, if the carrying value of the reporting unit exceeds the fair value, the goodwill of the reporting unit may be impaired. | |
The Company performs its annual impairment test as of July 1 of each year. At July 1, 2013, the Company performed the annual impairment test and determined that there had been no impairment of goodwill. In performing this assessment, the Company utilizes an income approach. Such an approach requires estimation of future operating cash flows including business growth, utilization of working capital and discount rates. The valuation of the business as a whole is compared to the Company's market value at the date of the test in order to verify the calculation. | |
In 2011, the Financial Accounting Standards Board issued new accounting guidance that simplifies goodwill impairment tests. The new guidance states that a "qualitative" assessment may be performed to determine whether further impairment testing is necessary. We have adopted this accounting standard during this current fiscal year but we have not changed our methodology in performing our goodwill impairment test. | |
Long-lived assets (excluding goodwill) | ' |
(i) Long-lived assets (excluding goodwill) | |
Property and equipment is recorded at cost. Depreciation is recorded over the assets' respective useful economic lives, which are not to exceed 39.5 years for the Company's buildings and seven years for office furniture and equipment. Leasehold improvements are amortized over the shorter of their useful life or the remaining term of the lease. Repairs and maintenance costs are expensed as incurred. | |
All of the Company's capitalized software represents development costs for software that is intended for the Company's internal use. Direct costs of time and material 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 to eight years. Costs incurred for upgrades and enhancements that do not result in additional functionality are expensed as incurred. | |
Deferred contract costs consist of contractually recoverable direct set-up costs relating to long-term service contracts. These costs include direct and incremental costs incurred prior to the commencement of us providing service to enable us to provide the contracted services to our customer. Such costs are expensed over the period services are provided. | |
The Company reviews long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. Our review is based on our projection of the undiscounted future operating cash flows of the related customer project. To the extent such projections indicate that future undiscounted cash flows are not sufficient to recover the carrying amount, we recognize a non-cash impairment charge to reduce the carrying amount to equal projected future discounted cash flows. No impairment charges were recorded in the three years ending September 30, 2013. | |
Legal and settlement expense (recovery), net | ' |
(j) Legal and settlement expense (recovery), net | |
Legal and settlement expense (recovery), net consists of costs, net of reimbursed insurance claims, related to significant legal settlements and non-routine legal matters, including future probable legal costs estimated to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in selling, general and administrative expense. | |
Income taxes | ' |
(k) 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. | |
The Company recognizes 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 which has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant tax authority. | |
Foreign currency | ' |
(l) 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 income on the consolidated balance sheet. Gains and losses from foreign currency transactions are included in interest and other income and are typically immaterial. | |
Contingencies | ' |
(m) Contingencies | |
From time to time, we are involved in legal proceedings, including contract and employment claims, in the ordinary course of business. We assess the likelihood of any adverse judgments or outcomes to these contingencies, as well as potential ranges of probable losses and establish reserves accordingly. The amount of reserves required may change in future periods due to new developments in each matter or changes in approach to a matter such as a change in settlement strategy. | |
Reclassifications | ' |
(n) Reclassifications | |
Certain financial results have been reclassified to conform to the current year presentation. | |
The Company corrected an immaterial balance sheet classification error in the accounting for the repurchase of common stock, which resulted in the reduction of the previously reported amounts of treasury stock and retained earnings by $429.6 million at September 30, 2012. | |
The Company corrected an immaterial balance sheet classification error in the accounting for deferred revenue and costs of underlying associated contracts, which resulted in a reclassification of approximately $14.5 million from current deferred revenue to long-term deferred revenue and $5.5 million of prepayments to other long-term assets as of September 30, 2012. | |
Business_segments_Tables
Business segments (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business segments | ' | ||||||||||
Financial information for each of the entity's business segments | ' | ||||||||||
The results of these segments for the three years ended September 30, 2013 are shown below (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Revenue: | |||||||||||
Health Services | $ | 862,879 | $ | 671,181 | $ | 565,881 | |||||
Human Services | 468,400 | 378,964 | 363,752 | ||||||||
Total | $ | 1,331,279 | $ | 1,050,145 | $ | 929,633 | |||||
Gross Profit: | |||||||||||
Health services | $ | 248,100 | $ | 172,456 | $ | 147,239 | |||||
Human Services | 137,933 | 115,487 | 106,412 | ||||||||
Total | $ | 386,033 | $ | 287,943 | $ | 253,651 | |||||
Selling, general and administrative expense: | |||||||||||
Health Services | $ | 118,266 | $ | 91,837 | $ | 72,524 | |||||
Human Services | 79,842 | 65,565 | 59,590 | ||||||||
Corporate / Other | (249 | ) | — | (56 | ) | ||||||
Total | $ | 197,859 | $ | 157,402 | $ | 132,058 | |||||
Operating income from continuing operations (before income taxes): | |||||||||||
Health Services | $ | 129,834 | $ | 80,619 | $ | 74,715 | |||||
Human Services | 58,091 | 49,922 | 46,822 | ||||||||
Corporate / Other | 249 | — | 56 | ||||||||
Acquisition-related expenses and legal and settlement recovery (expense), net | (1,966 | ) | (2,966 | ) | 808 | ||||||
Total | $ | 186,208 | $ | 127,575 | $ | 122,401 | |||||
Depreciation and amortization: | |||||||||||
Health Services | $ | 17,438 | $ | 14,257 | $ | 12,120 | |||||
Human Services | 13,722 | 8,790 | 7,842 | ||||||||
Corporate / Other | 4,656 | 3,413 | 2,883 | ||||||||
Total | $ | 35,816 | $ | 26,460 | $ | 22,845 | |||||
Identifiable assets for the segments are shown below (in thousands): | |||||||||||
Year Ended | |||||||||||
September 30 | |||||||||||
2013 | 2012 | ||||||||||
Health Services | $ | 518,914 | $ | 266,017 | |||||||
Human Services | 221,604 | 305,376 | |||||||||
Corporate / Other | 117,460 | 123,900 | |||||||||
Total | $ | 857,978 | $ | 695,293 | |||||||
Schedule of distribution of revenues | ' | ||||||||||
Revenues for the Company were distributed as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
United States | $ | 999,419 | $ | 775,871 | $ | 630,812 | |||||
Australia | 157,383 | 163,482 | 176,814 | ||||||||
Rest of World | 174,477 | 110,792 | 122,007 | ||||||||
Total | $ | 1,331,279 | $ | 1,050,145 | $ | 929,633 | |||||
Schedule of distribution of total long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets | ' | ||||||||||
Total long-lived assets of the Company, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands): | |||||||||||
Year Ended | |||||||||||
September 30 | |||||||||||
2013 | 2012 | ||||||||||
United States | $ | 88,812 | $ | 56,188 | |||||||
Canada | 24,135 | 24,110 | |||||||||
Australia | 9,459 | 10,358 | |||||||||
Rest of World | 6,074 | 4,752 | |||||||||
Total | $ | 128,480 | $ | 95,408 | |||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings per share | ' | ||||||||||
Schedule of the components of basic and diluted earnings (loss) per share | ' | ||||||||||
The following table sets forth the components of basic and diluted earnings per share (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator: | |||||||||||
Income from continuing operations | $ | 117,125 | $ | 76,099 | $ | 82,142 | |||||
Income (loss) from discontinued operations | (394 | ) | 34 | (974 | ) | ||||||
Net income | $ | 116,731 | $ | 76,133 | $ | 81,168 | |||||
Denominator: | |||||||||||
Weighted average shares outstanding | 68,165 | 67,734 | 68,834 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee stock options and unvested restricted stock awards | 1,728 | 1,877 | 2,228 | ||||||||
Denominator for diluted earnings per share | 69,893 | 69,611 | 71,062 | ||||||||
Business_combinations_Tables
Business combinations (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Business combinations | ' | ||||||||||
Summary of valuation of the intangible assets acquired | ' | ||||||||||
The valuation of the intangible assets acquired is summarized below (in thousands). | |||||||||||
Useful life | Fair value | ||||||||||
Customer relationships | 20 years | $ | 19,933 | ||||||||
Technology-based intangible assets | 2 years | 609 | |||||||||
Total intangible assets | $ | 20,542 | |||||||||
Schedule of unaudited pro forma information | ' | ||||||||||
The pro forma results presented include amortization charges for acquired intangible assets, adjustments to interest income foregone, the effect of calculating the fair value of acquired deferred revenue and related tax effects, as well as excluding the related acquisition expenses for fiscal year 2013 (in thousands). | |||||||||||
Unaudited pro forma results | |||||||||||
for the year ended | |||||||||||
September 30, | |||||||||||
2013 | 2012 | ||||||||||
Revenue | $ | 1,368,399 | $ | 1,093,389 | |||||||
Income from continuing operations | 120,182 | 77,469 | |||||||||
Summary of effect on the financial statements | ' | ||||||||||
The effect on the financial statements is summarized below (in thousands): | |||||||||||
Contingent | |||||||||||
consideration | |||||||||||
Balance at September 30, 2012 | $ | 406 | |||||||||
Foreign currency translation | (18 | ) | |||||||||
Balance at September 30, 2013 | $ | 388 | |||||||||
HML | ' | ||||||||||
Business combinations | ' | ||||||||||
Assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date | ' | ||||||||||
The assets and liabilities of HML were recorded in the Company's financial statements at their fair values at the acquisition date as follows (in thousands): | |||||||||||
Preliminary Purchase | |||||||||||
Price Accounting | |||||||||||
Cash consideration, net of cash acquired | $ | 71,435 | |||||||||
Stock consideration | 6,425 | ||||||||||
Purchase consideration, net of cash acquired | $ | 77,860 | |||||||||
Accounts receivable and unbilled receivables | $ | 7,671 | |||||||||
Other current assets | 1,382 | ||||||||||
Property and equipment | 2,752 | ||||||||||
Intangible assets | 20,542 | ||||||||||
Total identifiable assets acquired | 32,347 | ||||||||||
Accounts payable and other liabilities | 6,228 | ||||||||||
Deferred revenue | 1,149 | ||||||||||
Current income tax liability | 612 | ||||||||||
Deferred tax liability | 4,814 | ||||||||||
Total liabilities assumed | 12,803 | ||||||||||
Net identifiable assets acquired | 19,544 | ||||||||||
Goodwill | 58,316 | ||||||||||
Net assets acquired | $ | 77,860 | |||||||||
PSI | ' | ||||||||||
Business combinations | ' | ||||||||||
Assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date | ' | ||||||||||
An initial valuation was performed at September 30, 2012 and this valuation has been updated through September 30, 2013 (below, in thousands): | |||||||||||
Purchase Price Allocation | |||||||||||
Updated through September 30, 2012 | Adjustments | Updated through September 30, 2013 | |||||||||
Accounts receivable and unbilled receivables | $ | 23,017 | $ | — | $ | 23,017 | |||||
Other current assets | 9,527 | — | 9,527 | ||||||||
Deferred income taxes | 1,931 | 198 | 2,129 | ||||||||
Property and equipment | 6,411 | — | 6,411 | ||||||||
Other assets | 1,332 | — | 1,332 | ||||||||
Intangible assets | 22,183 | — | 22,183 | ||||||||
Total identifiable assets acquired | 64,401 | 198 | 64,599 | ||||||||
Accounts payable and other liabilities | 20,666 | — | 20,666 | ||||||||
Deferred revenue | 19,696 | 79 | 19,775 | ||||||||
Total liabilities assumed | 40,362 | 79 | 40,441 | ||||||||
Net identifiable assets acquired | 24,039 | 119 | 24,158 | ||||||||
Goodwill | 39,161 | 129 | 39,290 | ||||||||
Net assets acquired | $ | 63,200 | $ | 248 | $ | 63,448 | |||||
Concentrations_of_credit_risk_1
Concentrations of credit risk and major customers (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Concentrations of credit risk and major customers | ' | ||||||||||
Schedule of revenue recognized from customers | ' | ||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Texas | 14 | % | 18 | % | 16 | % | |||||
Commonwealth of Australia | 12 | % | 16 | % | 19 | % | |||||
United States Federal | 12 | % | * | 10 | % | ||||||
California | * | 10 | % | 11 | % | ||||||
* | |||||||||||
Entity provided less than 10% of the Company's consolidated revenues in this year. | |||||||||||
Accounts_receivable_reserve_Ta
Accounts receivable reserve (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Accounts receivable reserve | ' | ||||||||||
Schedule of accounts receivable reserve | ' | ||||||||||
Changes in the reserves against current billed accounts receivable were as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 3,975 | $ | 3,265 | $ | 1,845 | |||||
Additions to reserve | 2,334 | 2,061 | 3,063 | ||||||||
Deductions | (2,481 | ) | (1,351 | ) | (1,643 | ) | |||||
Balance at end of year | $ | 3,828 | $ | 3,975 | $ | 3,265 | |||||
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Goodwill and intangible assets | ' | |||||||||||||||||||
Schedule of changes in the carrying amount of goodwill | ' | |||||||||||||||||||
Changes in goodwill for the years ended September 30, 2013 and 2012 are as follows (in thousands): | ||||||||||||||||||||
Health Services | Human Services | Total | ||||||||||||||||||
Balance as of September 30, 2011 | $ | 43,242 | $ | 28,081 | $ | 71,323 | ||||||||||||||
Goodwill acquired with PSI | 19,898 | 19,263 | 39,161 | |||||||||||||||||
Foreign currency translation | 377 | 1,171 | 1,548 | |||||||||||||||||
Balance as of September 30, 2012 | 63,517 | 48,515 | 112,032 | |||||||||||||||||
Goodwill acquired with HML | 58,316 | — | 58,316 | |||||||||||||||||
Adjustment to goodwill acquired with PSI | 65 | 64 | 129 | |||||||||||||||||
Foreign currency translation | 3,198 | (1,808 | ) | 1,390 | ||||||||||||||||
Balance as of September 30, 2013 | $ | 125,096 | $ | 46,771 | $ | 171,867 | ||||||||||||||
Schedule of components of intangible assets | ' | |||||||||||||||||||
The following table sets forth the components of intangible assets (in thousands): | ||||||||||||||||||||
As of September 30, 2013 | As of September 30, 2012 | |||||||||||||||||||
Cost | Accumulated | Intangible | Cost | Accumulated | Intangible | |||||||||||||||
Amortization | Assets, net | Amortization | Assets, net | |||||||||||||||||
Customer contracts and relationships | $ | 39,243 | $ | 3,953 | $ | 35,290 | $ | 20,167 | $ | 3,082 | $ | 17,085 | ||||||||
Technology-based intangible assets | 9,583 | 5,974 | 3,609 | 9,114 | 4,909 | 4,205 | ||||||||||||||
Trademarks and trade names | 4,421 | 1,303 | 3,118 | 4,450 | 497 | 3,953 | ||||||||||||||
Non-compete arrangements | 243 | 221 | 22 | 254 | 167 | 87 | ||||||||||||||
Total | $ | 53,490 | $ | 11,451 | $ | 42,039 | $ | 33,985 | $ | 8,655 | $ | 25,330 | ||||||||
Schedule of estimated future amortization expense | ' | |||||||||||||||||||
Future amortization expense is estimated as follows (in thousands): | ||||||||||||||||||||
Future | ||||||||||||||||||||
amortization | ||||||||||||||||||||
expense | ||||||||||||||||||||
Year ending September 30, 2014 | $ | 5,322 | ||||||||||||||||||
Year ending September 30, 2015 | 5,165 | |||||||||||||||||||
Year ending September 30, 2016 | 4,865 | |||||||||||||||||||
Year ending September 30, 2017 | 4,466 | |||||||||||||||||||
Year ending September 30, 2018 | 3,768 |
Property_and_equipment_Tables
Property and equipment (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and equipment | ' | |||||||
Schedule of property, plant and equipment | ' | |||||||
Property and equipment, at cost, consists of the following (in thousands): | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Land | $ | 1,738 | $ | 1,800 | ||||
Building and improvements | 11,661 | 11,588 | ||||||
Office furniture and equipment | 149,796 | 107,859 | ||||||
Leasehold improvements | 17,870 | 20,263 | ||||||
181,065 | 141,510 | |||||||
Less: Accumulated depreciation and amortization | (103,355 | ) | (82,712 | ) | ||||
Total property and equipment, net | $ | 77,710 | $ | 58,798 | ||||
Capitalized_software_Tables
Capitalized software (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Capitalized software | ' | |||||||
Components of capitalized software | ' | |||||||
Capitalized software consists of the following (in thousands): | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Capitalized software | $ | 64,189 | $ | 46,767 | ||||
Less: Accumulated amortization | (23,733 | ) | (19,377 | ) | ||||
Total Software development costs, net | $ | 40,456 | $ | 27,390 | ||||
Deferred_contract_costs_Tables
Deferred contract costs (Tables) | 12 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred contract costs | ' | |||||||
Deferred contract costs | ' | |||||||
Deferred contract costs consist of the following (in thousands): | ||||||||
As of September 30, | ||||||||
2013 | 2012 | |||||||
Deferred contract costs | $ | 23,623 | $ | 16,147 | ||||
Less: accumulated amortization | (9,305 | ) | (6,863 | ) | ||||
Total deferred contract costs, net | $ | 14,318 | $ | 9,284 | ||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Leases | ' | ||||||||||
Schedule of minimum future payments under leases | ' | ||||||||||
Minimum future payments under leases in effect as of September 30, 2013 are as follows (in thousands): | |||||||||||
Operating lease commitments | |||||||||||
Office space | Equipment | Total | |||||||||
Year ended September 30, | |||||||||||
2014 | $ | 50,573 | $ | 1,833 | $ | 52,406 | |||||
2015 | 41,736 | 1,242 | 42,978 | ||||||||
2016 | 26,525 | 556 | 27,081 | ||||||||
2017 | 21,508 | 335 | 21,843 | ||||||||
2018 | 11,411 | 208 | 11,619 | ||||||||
Thereafter | 16,031 | — | 16,031 | ||||||||
Total minimum lease payments | $ | 167,784 | $ | 4,174 | $ | 171,958 | |||||
Stock_compensation_Tables
Stock compensation (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Stock compensation | ' | ||||||||||
Summary of the Company's RSU activity | ' | ||||||||||
Shares | Weighted- | ||||||||||
Average | |||||||||||
Grant-Date | |||||||||||
Fair Value | |||||||||||
Non-vested shares outstanding at September 30, 2012 | 2,892,140 | $ | 13.86 | ||||||||
Granted | 566,249 | 30.66 | |||||||||
Vested | (931,993 | ) | 14.46 | ||||||||
Forfeited | (107,442 | ) | 15.88 | ||||||||
Non-vested shares outstanding at September 30, 2013 | 2,418,954 | 17.47 | |||||||||
Summary of the Company's stock option activity | ' | ||||||||||
Options | Weighted Average | ||||||||||
Exercise Price | |||||||||||
Outstanding at September 30, 2012 | 720,358 | $ | 8.26 | ||||||||
Exercised | (288,742 | ) | 7.5 | ||||||||
Forfeited or expired | (10,152 | ) | 5.54 | ||||||||
Outstanding and exercisable at September 30, 2013 | 421,464 | 8.85 | |||||||||
Summary of information pertaining to stock options vested and exercised | ' | ||||||||||
The following table summarizes information pertaining to the stock options vested and exercised for the years presented (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Aggregate intrinsic value of all stock options exercised | $ | 7,081 | $ | 10,920 | $ | 15,102 | |||||
Net cash proceeds from exercise of stock options | 2,168 | 6,441 | 12,496 |
Legal_and_settlement_expense_r1
Legal and settlement expense (recovery), net (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Legal and settlement expense (recovery), net | ' | ||||||||||
Schedule of matters that represents legal and settlement expense (recoveries), net | ' | ||||||||||
Expenses and recoveries for the three years ended September 30, 2013 are shown below (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Insurance recoveries | $ | (390 | ) | $ | (1,180 | ) | $ | — | |||
Employee lawsuit | — | 600 | — | ||||||||
Client indemnification | — | 490 | — | ||||||||
Other | 188 | 180 | (808 | ) | |||||||
Total | $ | (202 | ) | $ | 90 | $ | (808 | ) | |||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Income taxes | ' | ||||||||||
Components of income from continuing operations before income taxes | ' | ||||||||||
The Company's components of income from continuing operations before income taxes and the corresponding provision for income taxes is as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Income from continuing operations before income taxes: | |||||||||||
United States | $ | 140,371 | $ | 93,418 | $ | 66,842 | |||||
Foreign | 48,688 | 38,333 | 59,054 | ||||||||
Income from continuing operations before income taxes | $ | 189,059 | $ | 131,751 | $ | 125,896 | |||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current provision: | |||||||||||
Federal | $ | 43,460 | $ | 36,348 | $ | 20,090 | |||||
State and local | 11,257 | 9,006 | 4,484 | ||||||||
Foreign | 14,821 | 13,572 | 17,422 | ||||||||
Total current provision | 69,538 | 58,926 | 41,996 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | $ | 2,741 | $ | (1,272 | ) | $ | 1,572 | ||||
State and local | 851 | (471 | ) | 397 | |||||||
Foreign | (1,196 | ) | (1,531 | ) | (211 | ) | |||||
Total deferred tax expense (benefit) | 2,396 | (3,274 | ) | 1,758 | |||||||
Income tax expense | $ | 71,934 | $ | 55,652 | $ | 43,754 | |||||
Provision for income taxes | ' | ||||||||||
The provision for income taxes differs from that which would have resulted from the use of the federal statutory income tax rate as follows (in thousands): | |||||||||||
Year ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax provision at statutory rate of 35% | $ | 66,171 | $ | 46,113 | $ | 44,063 | |||||
State income taxes, net of federal benefit | 8,183 | 5,558 | 3,175 | ||||||||
Foreign taxation | (3,499 | ) | (1,950 | ) | (3,644 | ) | |||||
Permanent items | 708 | 2,808 | 314 | ||||||||
True up to prior year | — | 2,715 | — | ||||||||
Valuation allowances on net operating loss carryforwards | — | 305 | (16 | ) | |||||||
Other | 371 | 103 | (138 | ) | |||||||
Income tax expense | $ | 71,934 | $ | 55,652 | $ | 43,754 | |||||
Significant items comprising the Company's deferred tax assets and liabilities | ' | ||||||||||
The significant items comprising the Company's deferred tax assets and liabilities as of September 30, 2013 and 2012 are as follows (in thousands): | |||||||||||
As of September 30, | |||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets—current: | |||||||||||
Costs deductible in future periods | $ | 21,186 | $ | 11,126 | |||||||
Deferred revenue | 10,930 | 14,543 | |||||||||
Net operating loss carryforwards | — | 811 | |||||||||
Other | 544 | — | |||||||||
Total deferred tax assets—current | 32,660 | 26,480 | |||||||||
Deferred tax liabilities—current: | |||||||||||
Accounts receivable—unbilled | 6,217 | 3,932 | |||||||||
Other | — | 341 | |||||||||
Total deferred tax liabilities—current: | 6,217 | 4,273 | |||||||||
Net deferred tax asset—current | $ | 26,443 | $ | 22,207 | |||||||
Deferred tax assets—non-current: | |||||||||||
Net operating loss carryforwards | $ | 4,080 | $ | 5,728 | |||||||
Valuation allowance on net operating loss carryforwards | (968 | ) | (1,313 | ) | |||||||
Net operating loss carryforwards net of valuation reserve | 3,112 | 4,415 | |||||||||
Deferred revenue | 10,340 | 6,737 | |||||||||
Stock compensation | 4,601 | 4,176 | |||||||||
Costs deductible in future periods | 1,528 | 1,021 | |||||||||
Other | 5,360 | 3,055 | |||||||||
Total deferred tax assets—non-current | 24,941 | 19,404 | |||||||||
Deferred tax liabilities—non-current | |||||||||||
Amortization of goodwill and intangible assets | 19,383 | 14,218 | |||||||||
Capitalized software | 9,045 | 4,701 | |||||||||
Property and equipment | 8,687 | 8,535 | |||||||||
Deferred contract costs | 2,059 | 452 | |||||||||
Other | 947 | 513 | |||||||||
Total deferred tax liability—non-current | $ | 40,121 | $ | 28,419 | |||||||
Net deferred tax liability—non-current | $ | 15,180 | $ | 9,015 | |||||||
Components of noncurrent deferred tax assets (liabilities) | ' | ||||||||||
Due to deferred tax assets and liabilities in different tax jurisdictions, the net long-term assets and liabilities are reflected on the accompanying consolidated balance sheet as follows (in thousands): | |||||||||||
As of September 30, | |||||||||||
2013 | 2012 | ||||||||||
Long-term assets | $ | 1,179 | $ | 1,369 | |||||||
Long-term liabilities | 16,359 | 10,384 | |||||||||
Net deferred tax liability—non-current | $ | 15,180 | $ | 9,015 | |||||||
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ||||||||||
The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows (in thousands): | |||||||||||
Year Ended September 30 | |||||||||||
2013 | 2012 | 2011 | |||||||||
Balance at beginning of year | $ | 1,059 | $ | 1,172 | $ | 1,553 | |||||
Lapse of statute of limitation | (230 | ) | (113 | ) | (381 | ) | |||||
Reductions for tax positions of prior years | (17 | ) | — | — | |||||||
Balance at end of year | $ | 812 | $ | 1,059 | $ | 1,172 | |||||
Quarterly_information_unaudite1
Quarterly information (unaudited) (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Quarterly information (unaudited) | ' | |||||||||||||
Schedule of selected quarterly income statement data | ' | |||||||||||||
Quarter Ended | ||||||||||||||
Dec. 31, | March 31, | June 30, | Sept. 30, | |||||||||||
2012 | 2013 | 2013 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 286,266 | $ | 326,351 | $ | 334,323 | $ | 384,339 | ||||||
Gross profit | 76,530 | 97,444 | 94,560 | 117,499 | ||||||||||
Net income | 21,316 | 31,689 | 28,100 | 35,626 | ||||||||||
Basic earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.32 | $ | 0.47 | $ | 0.41 | $ | 0.52 | ||||||
Loss from discontinued operations | (0.01 | ) | (0.01 | ) | — | — | ||||||||
Basic earnings per share | $ | 0.31 | $ | 0.46 | $ | 0.41 | $ | 0.52 | ||||||
Diluted earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.31 | $ | 0.45 | $ | 0.4 | $ | 0.51 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
Diluted earnings per share | $ | 0.31 | $ | 0.45 | $ | 0.4 | $ | 0.51 | ||||||
Quarter Ended | ||||||||||||||
Dec. 31, | March 31, | June 30, | Sept. 30, | |||||||||||
2011 | 2012 | 2012 | 2012 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Revenue | $ | 239,603 | $ | 243,452 | $ | 266,353 | $ | 300,737 | ||||||
Gross profit | 59,847 | 64,766 | 78,701 | 84,629 | ||||||||||
Net income | 17,704 | 14,273 | 20,485 | 23,671 | ||||||||||
Basic earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.26 | $ | 0.21 | $ | 0.3 | $ | 0.35 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
Basic earnings per share | $ | 0.26 | $ | 0.21 | $ | 0.3 | $ | 0.35 | ||||||
Diluted earnings per share: | ||||||||||||||
Income from continuing operations | $ | 0.26 | $ | 0.21 | $ | 0.29 | $ | 0.34 | ||||||
Loss from discontinued operations | — | — | — | — | ||||||||||
Diluted earnings per share | $ | 0.26 | $ | 0.21 | $ | 0.29 | $ | 0.34 | ||||||
Discontinued_operations_Tables
Discontinued operations (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Discontinued operations | ' | ||||||||||
Summary of operating results of discontinued operations included in the consolidated statements of operations | ' | ||||||||||
The following table summarizes the operating results of the discontinued operations included in the Consolidated Statements of Operations (in thousands): | |||||||||||
Year Ended September 30, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Loss from operations before income taxes | $ | (1,053 | ) | $ | — | $ | (219 | ) | |||
Benefit from income taxes | (418 | ) | — | (86 | ) | ||||||
Loss from discontinued operations | $ | (635 | ) | $ | — | $ | (133 | ) | |||
Gain (loss) on disposal before income taxes | $ | 398 | $ | 57 | $ | (1,390 | ) | ||||
Provision for (benefit from) income taxes | 157 | 23 | (549 | ) | |||||||
Gain/(loss) on disposal | $ | 241 | $ | 34 | $ | (841 | ) | ||||
Income (loss) from discontinued operations | $ | (394 | ) | $ | 34 | $ | (974 | ) | |||
Business_and_summary_of_signif2
Business and summary of significant accounting policies (Details) | 1 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Sep. 30, 2013 | |
segment | ||
Description of Business | ' | ' |
Number of business segments | ' | 2 |
Stock split | ' | ' |
Stock split | 2 | ' |
Business_and_summary_of_signif3
Business and summary of significant accounting policies (Details 2) (Total Revenue) | 12 Months Ended |
Sep. 30, 2013 | |
Performance-based contracts | ' |
Revenue Recognition | ' |
Percentage of total revenue | 48.00% |
Fixed-price contracts | ' |
Revenue Recognition | ' |
Percentage of total revenue | 29.00% |
Cost-plus contracts | ' |
Revenue Recognition | ' |
Percentage of total revenue | 20.00% |
Time and materials contracts | ' |
Revenue Recognition | ' |
Percentage of total revenue | 3.00% |
Business_and_summary_of_signif4
Business and summary of significant accounting policies (Details 3) (USD $) | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jul. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Business and summary of significant accounting policies | ' | ' | ' |
Impairment of goodwill | $0 | $0 | $0 |
Buildings | Maximum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Estimated useful lives | ' | '39 years 6 months | ' |
Office furniture and equipment. | Maximum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Estimated useful lives | ' | '7 years | ' |
Software development costs. | Minimum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Estimated useful lives | ' | '3 years | ' |
Software development costs. | Maximum | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Estimated useful lives | ' | '8 years | ' |
Business_and_summary_of_signif5
Business and summary of significant accounting policies (Details 4) (USD $) | 36 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Long-lived assets (excluding goodwill) | ' | ' |
Impairment charges related to long lived assets excluding goodwill | $0 | ' |
Reclassifications | ' | ' |
Amount of reduction in previously reported treasury stock and retained earnings | ' | 429.6 |
Amount of current deferred revenue reclassified to long-term deferred revenue | ' | 14.5 |
Amount reclassified from prepayments to other long-term assets | ' | $5.50 |
Business_segments_Details
Business segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
segment | |||||||||||
Business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Financial information for each of the Company's business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $384,339 | $334,323 | $326,351 | $286,266 | $300,737 | $266,353 | $243,452 | $239,603 | $1,331,279 | $1,050,145 | $929,633 |
Gross profit | 117,499 | 94,560 | 97,444 | 76,530 | 84,629 | 78,701 | 64,766 | 59,847 | 386,033 | 287,943 | 253,651 |
Selling, general, and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 197,859 | 157,402 | 132,058 |
Operating income from continuing operations (before income taxes) | ' | ' | ' | ' | ' | ' | ' | ' | 186,208 | 127,575 | 122,401 |
Acquisition-related expenses and legal and settlement recovery (expense), net | ' | ' | ' | ' | ' | ' | ' | ' | -1,966 | -2,966 | 808 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 35,816 | 26,460 | 22,845 |
Identifiable assets | 857,978 | ' | ' | ' | 695,293 | ' | ' | ' | 857,978 | 695,293 | ' |
Operating segments | Health Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for each of the Company's business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 862,879 | 671,181 | 565,881 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 248,100 | 172,456 | 147,239 |
Selling, general, and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 118,266 | 91,837 | 72,524 |
Operating income from continuing operations (before income taxes) | ' | ' | ' | ' | ' | ' | ' | ' | 129,834 | 80,619 | 74,715 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 17,438 | 14,257 | 12,120 |
Identifiable assets | 518,914 | ' | ' | ' | 266,017 | ' | ' | ' | 518,914 | 266,017 | ' |
Operating segments | Human Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for each of the Company's business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 468,400 | 378,964 | 363,752 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 137,933 | 115,487 | 106,412 |
Selling, general, and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | 79,842 | 65,565 | 59,590 |
Operating income from continuing operations (before income taxes) | ' | ' | ' | ' | ' | ' | ' | ' | 58,091 | 49,922 | 46,822 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 13,722 | 8,790 | 7,842 |
Identifiable assets | 221,604 | ' | ' | ' | 305,376 | ' | ' | ' | 221,604 | 305,376 | ' |
Corporate/Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial information for each of the Company's business segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general, and administrative expense | ' | ' | ' | ' | ' | ' | ' | ' | -249 | ' | -56 |
Operating income from continuing operations (before income taxes) | ' | ' | ' | ' | ' | ' | ' | ' | 249 | ' | 56 |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 4,656 | 3,413 | 2,883 |
Identifiable assets | $117,460 | ' | ' | ' | $123,900 | ' | ' | ' | $117,460 | $123,900 | ' |
Business_segments_Details_2
Business segments (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Revenues and total long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $384,339 | $334,323 | $326,351 | $286,266 | $300,737 | $266,353 | $243,452 | $239,603 | $1,331,279 | $1,050,145 | $929,633 |
Total long-lived assets | 128,480 | ' | ' | ' | 95,408 | ' | ' | ' | 128,480 | 95,408 | ' |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and total long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 999,419 | 775,871 | 630,812 |
Total long-lived assets | 88,812 | ' | ' | ' | 56,188 | ' | ' | ' | 88,812 | 56,188 | ' |
Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and total long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-lived assets | 24,135 | ' | ' | ' | 24,110 | ' | ' | ' | 24,135 | 24,110 | ' |
Australia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and total long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 157,383 | 163,482 | 176,814 |
Total long-lived assets | 9,459 | ' | ' | ' | 10,358 | ' | ' | ' | 9,459 | 10,358 | ' |
Rest of World | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues and total long-lived assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 174,477 | 110,792 | 122,007 |
Total long-lived assets | $6,074 | ' | ' | ' | $4,752 | ' | ' | ' | $6,074 | $4,752 | ' |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 |
Unvested restricted stock units | |||||||||||||
Maximum | |||||||||||||
Earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | $117,125 | $76,099 | $82,142 | ' |
Income (loss) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -394 | 34 | -974 | ' |
Net income | ' | $35,626 | $28,100 | $31,689 | $21,316 | $23,671 | $20,485 | $14,273 | $17,704 | $116,731 | $76,133 | $81,168 | ' |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,165,000 | 67,734,000 | 68,834,000 | ' |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock options and unvested restricted stock units (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,728,000 | 1,877,000 | 2,228,000 | ' |
Denominator for diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | 69,893,000 | 69,611,000 | 71,062,000 | ' |
Awards excluded from the calculation of diluted earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awards excluded from the calculation of diluted earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000 |
Business_combinations_Details
Business combinations (Details) | 12 Months Ended | 0 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Jul. 02, 2013 | Jul. 02, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
USD ($) | USD ($) | USD ($) | HML | HML | PSI | PSI | PSI | PSI | |
segment | USD ($) | GBP (£) | USD ($) | USD ($) | Previously reported | Adjusted | |||
USD ($) | USD ($) | ||||||||
Business combinations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share capital acquired (as a percent) | ' | ' | ' | 100.00% | 100.00% | 100.00% | ' | ' | ' |
Acquisition-related expenses | $2,168 | $2,876 | ' | $1,200 | ' | ' | ' | ' | ' |
Purchase price allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration, net of cash acquired | ' | ' | ' | 71,435 | 46,900 | 63,400 | ' | ' | ' |
Stock consideration | ' | ' | ' | 6,425 | 4,200 | ' | ' | ' | ' |
Stock consideration (in shares) | ' | ' | ' | 202,972 | 202,972 | ' | ' | ' | ' |
Purchase consideration, net of cash acquired | ' | ' | ' | 77,860 | 51,100 | ' | ' | ' | ' |
Accounts receivable and unbilled receivables | ' | ' | ' | 7,671 | ' | ' | 23,017 | 23,017 | ' |
Other current assets | ' | ' | ' | 1,382 | ' | ' | 9,527 | 9,527 | ' |
Deferred income taxes | ' | ' | ' | ' | ' | ' | 2,129 | 1,931 | 198 |
Property and equipment | ' | ' | ' | 2,752 | ' | ' | 6,411 | 6,411 | ' |
Other assets | ' | ' | ' | ' | ' | ' | 1,332 | 1,332 | ' |
Intangible assets | ' | ' | ' | 20,542 | ' | ' | 22,183 | 22,183 | ' |
Total identifiable assets acquired | ' | ' | ' | 32,347 | ' | ' | 64,599 | 64,401 | 198 |
Accounts payable and other liabilities | ' | ' | ' | 6,228 | ' | ' | 20,666 | 20,666 | ' |
Deferred revenue | ' | ' | ' | 1,149 | ' | ' | 19,775 | 19,696 | 79 |
Current income tax liability | ' | ' | ' | 612 | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | 4,814 | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | 12,803 | ' | ' | 40,441 | 40,362 | 79 |
Net identifiable assets acquired | ' | ' | ' | 19,544 | ' | ' | 24,158 | 24,039 | 119 |
Goodwill | 171,867 | 112,032 | 71,323 | 58,316 | ' | ' | 39,290 | 39,161 | 129 |
Net assets acquired | ' | ' | ' | $77,860 | ' | ' | $63,448 | $63,200 | $248 |
Number of business segments | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Business_combinations_Details_
Business combinations (Details 2) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jul. 02, 2013 |
Intangible assets acquired | ' |
Fair value | $20,542 |
HML | ' |
Intangible assets acquired | ' |
Useful life | '19 years 6 months |
HML | Customer relationships | ' |
Intangible assets acquired | ' |
Useful life | '20 years |
Fair value | 19,933 |
HML | Technology-based intangible assets | ' |
Intangible assets acquired | ' |
Useful life | '2 years |
Fair value | $609 |
Business_combinations_Details_1
Business combinations (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Business combinations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $384,339 | $334,323 | $326,351 | $286,266 | $300,737 | $266,353 | $243,452 | $239,603 | $1,331,279 | $1,050,145 | $929,633 |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 117,125 | 76,099 | 82,142 |
HML | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combinations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 14,100 | ' | ' |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 500 | ' | ' |
Pro forma information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,368,399 | 1,093,389 | ' |
Income from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | $120,182 | $77,469 | ' |
Business_combinations_Details_2
Business combinations (Details 4) (DeltaWare) | 12 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2013 | Feb. 10, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | CAD | Sales targets | Sales targets | ||
USD ($) | CAD | ||||
Business combinations | ' | ' | ' | ' | ' |
Share capital acquired (as a percent) | ' | ' | 100.00% | ' | ' |
Contingent consideration payable, based upon sales of acquiree products | ' | 1,000,000 | ' | $3,900,000 | 4,000,000 |
Sales of acquiree products | ' | ' | ' | 0 | ' |
Contingent consideration | ' | ' | ' | ' | ' |
Balance at the beginning of the period | 406,000 | ' | ' | ' | ' |
Foreign currency translation | -18,000 | ' | ' | ' | ' |
Balance at the end of the period | $388,000 | ' | ' | ' | ' |
Concentrations_of_credit_risk_2
Concentrations of credit risk and major customers (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Revenue Recognition | ' | ' | ' |
Number of major customers | 3 | ' | ' |
Total Revenue | Foreign customers | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 25.00% | 26.00% | 32.00% |
Total Revenue | State government agencies | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 56.00% | ' | ' |
Total Revenue | Foreign government agencies | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 24.00% | ' | ' |
Total Revenue | U.S.-based federal government agencies | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 12.00% | ' | ' |
Total Revenue | Other sources including local municipalities and commercial customers | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 8.00% | ' | ' |
Total Revenue | State of Texas | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 14.00% | 18.00% | 16.00% |
Total Revenue | Commonwealth of Australia | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 12.00% | 16.00% | 19.00% |
Total Revenue | United States Federal | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | 12.00% | ' | 10.00% |
Total Revenue | United States Federal | Maximum | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | ' | 10.00% | ' |
Total Revenue | State of California | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Revenue from major customers (as a percent) | ' | 10.00% | 11.00% |
Accounts_receivable_reserve_De
Accounts receivable reserve (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Changes in the reserves against current billed accounts receivable | ' | ' | ' |
Contractual retainage provisions | $8,300,000 | $3,200,000 | ' |
Accounts receivable, billed and unbilled | ' | ' | ' |
Changes in the reserves against current billed accounts receivable | ' | ' | ' |
Balance at beginning of year | 3,975,000 | 3,265,000 | 1,845,000 |
Additions to reserve | 2,334,000 | 2,061,000 | 3,063,000 |
Deductions | -2,481,000 | -1,351,000 | -1,643,000 |
Balance at end of year | $3,828,000 | $3,975,000 | $3,265,000 |
Goodwill_and_intangible_assets2
Goodwill and intangible assets (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Jul. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Changes in goodwill | ' | ' | ' |
Balance at the beginning of the period | ' | $112,032,000 | $71,323,000 |
Goodwill acquired | ' | 58,316,000 | 39,161,000 |
Adjustment to goodwill acquired with PSI | ' | 129,000 | ' |
Foreign currency translation | ' | 1,390,000 | 1,548,000 |
Balance at the end of the period | ' | 171,867,000 | 112,032,000 |
Impairment of goodwill related to continuing operations | 0 | 0 | 0 |
HML | ' | ' | ' |
Changes in goodwill | ' | ' | ' |
Balance at the end of the period | 58,316,000 | ' | ' |
Policy Studies, Inc | ' | ' | ' |
Changes in goodwill | ' | ' | ' |
Balance at the end of the period | ' | 39,290,000 | ' |
Health Services | ' | ' | ' |
Changes in goodwill | ' | ' | ' |
Balance at the beginning of the period | ' | 63,517,000 | 43,242,000 |
Adjustment to goodwill acquired with PSI | ' | 65,000 | ' |
Foreign currency translation | ' | 3,198,000 | 377,000 |
Balance at the end of the period | ' | 125,096,000 | 63,517,000 |
Health Services | HML | ' | ' | ' |
Changes in goodwill | ' | ' | ' |
Goodwill acquired | ' | 58,316,000 | ' |
Health Services | Policy Studies, Inc | ' | ' | ' |
Changes in goodwill | ' | ' | ' |
Goodwill acquired | ' | ' | 19,898,000 |
Human Services | ' | ' | ' |
Changes in goodwill | ' | ' | ' |
Balance at the beginning of the period | ' | 48,515,000 | 28,081,000 |
Adjustment to goodwill acquired with PSI | ' | 64,000 | ' |
Foreign currency translation | ' | -1,808,000 | 1,171,000 |
Balance at the end of the period | ' | 46,771,000 | 48,515,000 |
Human Services | Policy Studies, Inc | ' | ' | ' |
Changes in goodwill | ' | ' | ' |
Goodwill acquired | ' | ' | $19,263,000 |
Goodwill_and_intangible_assets3
Goodwill and intangible assets (Details 2) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Components of intangible assets | ' | ' | ' |
Cost | $53,490,000 | $33,985,000 | ' |
Accumulated Amortization | 11,451,000 | 8,655,000 | ' |
Intangible Assets, net | 42,039,000 | 25,330,000 | ' |
Weighted average remaining life of assets not fully amortized | '12 years 7 months 6 days | ' | ' |
Amortization expense | 4,900,000 | 2,700,000 | 2,200,000 |
Estimated future amortization expense | ' | ' | ' |
Year ending September 30, 2014 | 5,322,000 | ' | ' |
Year ending September 30, 2015 | 5,165,000 | ' | ' |
Year ending September 30, 2016 | 4,865,000 | ' | ' |
Year ending September 30, 2017 | 4,466,000 | ' | ' |
Year ending September 30, 2018 | 3,768,000 | ' | ' |
Customer contracts and relationships | ' | ' | ' |
Components of intangible assets | ' | ' | ' |
Cost | 39,243,000 | 20,167,000 | ' |
Accumulated Amortization | 3,953,000 | 3,082,000 | ' |
Intangible Assets, net | 35,290,000 | 17,085,000 | ' |
Weighted average remaining life of assets not fully amortized | '14 years 2 months 12 days | ' | ' |
Technology-based intangible assets | ' | ' | ' |
Components of intangible assets | ' | ' | ' |
Cost | 9,583,000 | 9,114,000 | ' |
Accumulated Amortization | 5,974,000 | 4,909,000 | ' |
Intangible Assets, net | 3,609,000 | 4,205,000 | ' |
Weighted average remaining life of assets not fully amortized | '4 years 1 month 6 days | ' | ' |
Fully-amortized but still in use intangible assets | 3,400,000 | ' | ' |
Trademarks and trade names | ' | ' | ' |
Components of intangible assets | ' | ' | ' |
Cost | 4,421,000 | 4,450,000 | ' |
Accumulated Amortization | 1,303,000 | 497,000 | ' |
Intangible Assets, net | 3,118,000 | 3,953,000 | ' |
Weighted average remaining life of assets not fully amortized | '3 years 10 months 24 days | ' | ' |
Non-compete arrangements | ' | ' | ' |
Components of intangible assets | ' | ' | ' |
Cost | 243,000 | 254,000 | ' |
Accumulated Amortization | 221,000 | 167,000 | ' |
Intangible Assets, net | $22,000 | $87,000 | ' |
Weighted average remaining life of assets not fully amortized | '3 months 18 days | ' | ' |
Property_and_equipment_Details
Property and equipment (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Property and equipment, at cost | ' | ' | ' |
Property and equipment, gross | $181,065,000 | $141,510,000 | ' |
Less: Accumulated depreciation and amortization | -103,355,000 | -82,712,000 | ' |
Total property and equipment, net | 77,710,000 | 58,798,000 | ' |
Fixed asset depreciation expense | 26,300,000 | 18,800,000 | 15,100,000 |
Land | ' | ' | ' |
Property and equipment, at cost | ' | ' | ' |
Property and equipment, gross | 1,738,000 | 1,800,000 | ' |
Building and improvements | ' | ' | ' |
Property and equipment, at cost | ' | ' | ' |
Property and equipment, gross | 11,661,000 | 11,588,000 | ' |
Office furniture and equipment | ' | ' | ' |
Property and equipment, at cost | ' | ' | ' |
Property and equipment, gross | 149,796,000 | 107,859,000 | ' |
Leasehold improvements | ' | ' | ' |
Property and equipment, at cost | ' | ' | ' |
Property and equipment, gross | $17,870,000 | $20,263,000 | ' |
Capitalized_software_Details
Capitalized software (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Capitalized software | ' | ' | ' |
Capitalized software | $64,189,000 | $46,767,000 | ' |
Less: Accumulated amortization | -23,733,000 | -19,377,000 | ' |
Total Software development costs, net | 40,456,000 | 27,390,000 | ' |
Capitalized software amortization expense | $4,600,000 | $4,900,000 | $5,500,000 |
Deferred_contract_costs_Detail
Deferred contract costs (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Deferred contract costs | ' | ' |
Deferred contract costs | $23,623 | $16,147 |
Less: accumulated amortization | -9,305 | -6,863 |
Total deferred contract costs, net | $14,318 | $9,284 |
Credit_facilities_Details
Credit facilities (Details) | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Mar. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 15, 2013 | Sep. 30, 2013 | Mar. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Swingline loans | Letters of credit | Letters of credit | Letters of credit | Letters of credit | Letter of credit (Other than Revolving Credit Agreement) | Atlantic Innovation Fund of Canada | Atlantic Innovation Fund of Canada | Performance Bonds | Performance Bonds | |
USD ($) | Base Rate | Euro currency Rate | Index Rate | Minimum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | USD ($) | USD ($) | USD ($) | Minimum | Maximum | USD ($) | USD ($) | CAD | USD ($) | USD ($) | |
Base Rate | Euro currency Rate | Index Rate | Base Rate | Euro currency Rate | Index Rate | Item | Item | Item | ||||||||||||||
Credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of the credit agreement | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | $100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ' | $30 | ' | ' | ' | ' | 1.8 | ' | ' |
Number of letters of credit issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | 2 | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.4 | ' | ' | ' | 3 | ' | ' | ' | ' |
Leverage ratio | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio, actual | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leverage ratio to calculate annual commitment fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | 0.30% | ' | ' | ' | ' | ' |
Variable rate basis | ' | 'Base Rate | 'Eurocurrency Rate | 'Index Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin (as a percent) | ' | ' | ' | ' | ' | 0.00% | 1.00% | 1.00% | ' | 0.75% | 1.75% | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest charges (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' |
Number of remaining quarterly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35 | 35 | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | 1.5 | ' | ' |
Performance bond commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50.80 | $48 |
Commitments_and_contingencies_
Commitments and contingencies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Mar. 31, 2009 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2012 | |
Medicaid Agency | School MAX Customers | Flexible New Deal contract | Flexible New Deal contract | Contract | Contract | Contract | PSI | PSI | ||||||||||||
More than | Loss contract | Loss contract | ||||||||||||||||||
Commitments and Contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of claim | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300,000 | $10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue recorded | 32,953,000 | ' | ' | ' | 34,075,000 | ' | ' | ' | 32,953,000 | 34,075,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,100,000 |
Additional revenue recognized from significant contract | 384,339,000 | 334,323,000 | 326,351,000 | 286,266,000 | 300,737,000 | 266,353,000 | 243,452,000 | 239,603,000 | 1,331,279,000 | 1,050,145,000 | 929,633,000 | ' | ' | ' | ' | ' | ' | ' | 16,000,000 | ' |
Additional cost recognized for significant contract | ' | ' | ' | ' | ' | ' | ' | ' | 945,246,000 | 762,202,000 | 675,982,000 | ' | ' | ' | ' | ' | ' | ' | 5,100,000 | ' |
Operating profit | ' | ' | ' | ' | ' | ' | ' | ' | 186,208,000 | 127,575,000 | 122,401,000 | ' | ' | ' | ' | ' | ' | ' | 10,900,000 | ' |
Reserve recorded to cover the liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' |
Claim received for revenue foregone | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | ' | ' | ' | ' | ' | ' |
Cost recoveries, net of subcontractor expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' |
Charge (gain) on a fixed price contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,800,000 | 7,300,000 | ' | ' | ' |
Liability relating to anticipated losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Additional revenue recognized from significant contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,200,000 | ' | ' | ' | ' |
Percentage of employees covered by collective bargaining agreements | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Leases | ' | ' | ' |
Lease expense | $49,000,000 | $37,600,000 | $32,000,000 |
Minimum future payments under leases | ' | ' | ' |
2014 | 52,406,000 | ' | ' |
2015 | 42,978,000 | ' | ' |
2016 | 27,081,000 | ' | ' |
2017 | 21,843,000 | ' | ' |
2018 | 11,619,000 | ' | ' |
Thereafter | 16,031,000 | ' | ' |
Total minimum lease payments | 171,958,000 | ' | ' |
Office space | ' | ' | ' |
Minimum future payments under leases | ' | ' | ' |
2014 | 50,573,000 | ' | ' |
2015 | 41,736,000 | ' | ' |
2016 | 26,525,000 | ' | ' |
2017 | 21,508,000 | ' | ' |
2018 | 11,411,000 | ' | ' |
Thereafter | 16,031,000 | ' | ' |
Total minimum lease payments | 167,784,000 | ' | ' |
Equipment | ' | ' | ' |
Minimum future payments under leases | ' | ' | ' |
2014 | 1,833,000 | ' | ' |
2015 | 1,242,000 | ' | ' |
2016 | 556,000 | ' | ' |
2017 | 335,000 | ' | ' |
2018 | 208,000 | ' | ' |
Total minimum lease payments | $4,174,000 | ' | ' |
Employee_benefit_plans_and_def1
Employee benefit plans and deferred compensation (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Employee benefit plans and deferred compensation | ' | ' | ' |
Employer contribution to 401(k) plans | $3,800,000 | $3,000,000 | $3,000,000 |
Deferred compensation plan assets, cash and cash equivalents | 1,500,000 | ' | ' |
Asset related to life insurance assets, which are held at cash surrender value | 10,314,000 | 9,220,000 | ' |
Deferred compensation plan liabilities | $16,000,000 | ' | ' |
Stock_compensation_Details
Stock compensation (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Stock-based compensation | ' | ' | ' | ' |
Stock split | 2 | ' | ' | ' |
Shares available for grants | ' | 2,800,000 | ' | ' |
Information pertaining to stock options vested and exercised | ' | ' | ' | ' |
Total income tax benefit recognized | ' | $5,200,000 | $4,300,000 | $3,700,000 |
Cash paid to satisfy employees personal tax liability | ' | 8,868,000 | 4,464,000 | 3,516,000 |
RSUs | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Compensation expense recognized | ' | 14,600,000 | 12,100,000 | 9,400,000 |
Summary of RSU activity | ' | ' | ' | ' |
Non-vested shares outstanding at the beginning of the period | ' | 2,892,140 | ' | ' |
Granted (in shares) | ' | 566,249 | ' | ' |
Vested (in shares) | ' | -931,993 | ' | ' |
Forfeited (in shares) | ' | -107,442 | ' | ' |
Non-vested shares outstanding at the end of the period | ' | 2,418,954 | 2,892,140 | ' |
Weighted-Average Grant-Date Fair value | ' | ' | ' | ' |
Non-vested shares outstanding at the beginning of the period (in dollars per share) | ' | $13.86 | ' | ' |
Granted (in dollars per share) | ' | $30.66 | $21 | $15.90 |
Vested (in dollars per share) | ' | $14.46 | ' | ' |
Forfeited (in dollars per share) | ' | $15.88 | ' | ' |
Non-vested shares outstanding at the end of the period (in dollars per share) | ' | $17.47 | $13.86 | ' |
Total fair value | ' | 40,800,000 | 25,000,000 | 14,500,000 |
Total unrecognized compensation cost related to unvested RSUs | ' | 29,000,000 | ' | ' |
Unrecognized compensation cost period expected to be realized | ' | '5 years | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Weighted average remaining life | ' | '1 year 7 months 6 days | ' | ' |
Information pertaining to stock options vested and exercised | ' | ' | ' | ' |
Cash paid to satisfy employees personal tax liability | ' | 8,900,000 | 4,500,000 | 3,500,000 |
RSUs awarded before 2009 | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Award vesting period | ' | '6 years | ' | ' |
RSUs awarded in 2009 and after | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Award vesting period | ' | '5 years | ' | ' |
Stock options | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' |
Award vesting period | ' | '4 years | ' | ' |
Award expired period | ' | '10 years | ' | ' |
Summary of stock option activity | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | 720,358 | ' | ' |
Exercised (in shares) | ' | -288,742 | ' | ' |
Forfeited or expired (in shares) | ' | -10,152 | ' | ' |
Outstanding and exercisable at the end of the period (in shares) | ' | 421,464 | 720,358 | ' |
Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | $8.26 | ' | ' |
Exercised (in dollars per share) | ' | $7.50 | ' | ' |
Forfeited or expired (in dollars per share) | ' | $5.54 | ' | ' |
Outstanding and exercisable at the end of the period (in dollars per share) | ' | $8.85 | $8.26 | ' |
Intrinsic value of outstanding and exercisable stock options at the end of the period | ' | 15,300,000 | ' | ' |
Weighted average remaining life | ' | '2 years 3 months 18 days | ' | ' |
Information pertaining to stock options vested and exercised | ' | ' | ' | ' |
Aggregate intrinsic value of all stock options exercised | ' | 7,081,000 | 10,920,000 | 15,102,000 |
Net cash proceeds from exercise of stock options | ' | $2,168,000 | $6,441,000 | $12,496,000 |
Stock_repurchase_programs_Deta
Stock repurchase programs (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Nov. 30, 2011 | |
2008 and 2010 Plan | 2011 Plan | |||||
Stock Repurchase Programs | ' | ' | ' | ' | ' | ' |
Stock split | 2 | ' | ' | ' | ' | ' |
Stock repurchase programs, authorized amount | ' | ' | ' | ' | $175,000,000 | $125,000,000 |
Common shares repurchased | ' | 974,498 | 612,000 | 3,194,916 | ' | ' |
Common shares repurchased, cost | ' | 32,525,000 | 12,796,000 | 57,484,000 | ' | ' |
Amount remaining available for future stock repurchases | ' | $97,100,000 | ' | ' | ' | ' |
Legal_and_settlement_expense_r2
Legal and settlement expense (recovery), net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Legal and settlement expense (recovery), net | ' | ' | ' |
Insurance recoveries | ($390) | ($1,180) | ' |
Employee lawsuit | ' | 600 | ' |
Client indemnification | ' | 490 | ' |
Other | 188 | 180 | -808 |
Total | ($202) | $90 | ($808) |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income from continuing operations before income taxes: | ' | ' | ' |
United States | $140,371,000 | $93,418,000 | $66,842,000 |
Foreign | 48,688,000 | 38,333,000 | 59,054,000 |
Income from continuing operations before income taxes | 189,059,000 | 131,751,000 | 125,896,000 |
Current provision: | ' | ' | ' |
Federal | 43,460,000 | 36,348,000 | 20,090,000 |
State and local | 11,257,000 | 9,006,000 | 4,484,000 |
Foreign | 14,821,000 | 13,572,000 | 17,422,000 |
Total current provision | 69,538,000 | 58,926,000 | 41,996,000 |
Deferred tax expense (benefit): | ' | ' | ' |
Federal | 2,741,000 | -1,272,000 | 1,572,000 |
State and local | 851,000 | -471,000 | 397,000 |
Foreign | -1,196,000 | -1,531,000 | -211,000 |
Total deferred tax expense (benefit) | 2,396,000 | -3,274,000 | 1,758,000 |
Income tax expense | 71,934,000 | 55,652,000 | 43,754,000 |
Reconciliation of actual provision for income taxes and provision for income taxes resulting from the use of federal statutory income tax | ' | ' | ' |
Federal income tax provision at statutory rate of 35% | 66,171,000 | 46,113,000 | 44,063,000 |
State income taxes, net of federal benefit | 8,183,000 | 5,558,000 | 3,175,000 |
Foreign taxation | -3,499,000 | -1,950,000 | -3,644,000 |
Permanent items | 708,000 | 2,808,000 | 314,000 |
True up to prior year | ' | 2,715,000 | ' |
Valuation allowance on net operating loss carryforwards | ' | 305,000 | -16,000 |
Other | 371,000 | 103,000 | -138,000 |
Income tax expense | 71,934,000 | 55,652,000 | 43,754,000 |
Statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Deferred tax assets-current: | ' | ' | ' |
Costs deductible in future periods | 21,186,000 | 11,126,000 | ' |
Deferred revenue | 10,930,000 | 14,543,000 | ' |
Net operating loss carryforwards | ' | 811,000 | ' |
Other | 544,000 | ' | ' |
Total deferred tax assets-current | 32,660,000 | 26,480,000 | ' |
Deferred tax liabilities-current: | ' | ' | ' |
Accounts receivable-unbilled | 6,217,000 | 3,932,000 | ' |
Other | ' | 341,000 | ' |
Total deferred tax liabilities-current: | 6,217,000 | 4,273,000 | ' |
Net deferred tax asset-current | 26,443,000 | 22,207,000 | ' |
Deferred tax assets-non-current: | ' | ' | ' |
Net operating loss carryforwards | 4,080,000 | 5,728,000 | ' |
Valuation allowance on net operating loss carryforwards | -968,000 | -1,313,000 | ' |
Net operating loss carryforwards net of valuation reserve | 3,112,000 | 4,415,000 | ' |
Deferred revenue | 10,340,000 | 6,737,000 | ' |
Stock compensation | 4,601,000 | 4,176,000 | ' |
Costs deductible in future periods | 1,528,000 | 1,021,000 | ' |
Other | 5,360,000 | 3,055,000 | ' |
Total deferred tax assets-non-current | 24,941,000 | 19,404,000 | ' |
Deferred tax liabilities-non-current | ' | ' | ' |
Amortization of goodwill and intangible assets | 19,383,000 | 14,218,000 | ' |
Capitalized software | 9,045,000 | 4,701,000 | ' |
Property and equipment | 8,687,000 | 8,535,000 | ' |
Deferred contract costs | 2,059,000 | 452,000 | ' |
Other | 947,000 | 513,000 | ' |
Total deferred tax liability-non-current | 40,121,000 | 28,419,000 | ' |
Net deferred tax liability-non-current | 15,180,000 | 9,015,000 | ' |
Net deferred tax asset (liability) | ' | ' | ' |
Long-term assets | 1,179,000 | 1,369,000 | ' |
Long-term liabilities | 16,359,000 | 10,384,000 | ' |
Net deferred tax liability-non-current | 15,180,000 | 9,015,000 | ' |
Cumulative earnings from foreign subsidiaries | 144,000,000 | ' | ' |
Cash paid for income taxes | $58,200,000 | $44,300,000 | $45,200,000 |
Income_taxes_Details_2
Income taxes (Details 2) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Net operating loss carryforwards | ' | ' | ' |
Valuation allowance established against the deferred tax asset | $968,000 | $1,313,000 | ' |
Unrecognized tax benefits | ' | ' | ' |
Net unrecognized tax benefits | 1,000,000 | 1,100,000 | 1,200,000 |
Unrecognized tax benefits that, if recognized, would affect the annual effective income tax rate | 1,000,000 | ' | ' |
Interest and penalties included in net liability balance | 500,000 | 400,000 | 300,000 |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ' | ' |
Balance at beginning of year | 1,059,000 | 1,172,000 | 1,553,000 |
Lapse of statute of limitations | -230,000 | -113,000 | -381,000 |
Reductions for tax positions of prior years | -17,000 | ' | ' |
Balance at end of year | 812,000 | 1,059,000 | 1,172,000 |
United States | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' |
Net operating loss carryforwards | 6,900,000 | ' | ' |
Deferred tax asset, foreign | 3,100,000 | ' | ' |
Valuation allowance established against the deferred tax asset | 0 | ' | ' |
Canada | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' |
Net operating loss carryforwards | 3,900,000 | 5,000,000 | ' |
Deferred tax asset, foreign | 1,000,000 | 1,200,000 | ' |
Valuation allowance established against the deferred tax asset | 1,000,000 | 1,100,000 | ' |
Maximum | ' | ' | ' |
Unrecognized tax benefits | ' | ' | ' |
Interest expense recognized related to unrecognized tax benefits | 100,000 | 100,000 | 100,000 |
United Kingdom subsidiary | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' |
Net operating loss carryforwards | ' | 3,400,000 | ' |
Deferred tax asset, foreign | ' | 800,000 | ' |
Valuation allowance established against the deferred tax asset | ' | 0 | ' |
Saudi Arabian subsidiary | ' | ' | ' |
Net operating loss carryforwards | ' | ' | ' |
Net operating loss carryforwards | ' | 1,200,000 | ' |
Deferred tax asset, foreign | ' | $200,000 | ' |
Quarterly_information_unaudite2
Quarterly information (unaudited) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Quarterly information (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock split | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | $384,339 | $334,323 | $326,351 | $286,266 | $300,737 | $266,353 | $243,452 | $239,603 | $1,331,279 | $1,050,145 | $929,633 |
Gross profit | ' | 117,499 | 94,560 | 97,444 | 76,530 | 84,629 | 78,701 | 64,766 | 59,847 | 386,033 | 287,943 | 253,651 |
Net income | ' | $35,626 | $28,100 | $31,689 | $21,316 | $23,671 | $20,485 | $14,273 | $17,704 | $116,731 | $76,133 | $81,168 |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | ' | $0.52 | $0.41 | $0.47 | $0.32 | $0.35 | $0.30 | $0.21 | $0.26 | $1.72 | $1.12 | $1.19 |
Loss from discontinued operations (in dollars per share) | ' | ' | ' | ($0.01) | ($0.01) | ' | ' | ' | ' | ($0.01) | ' | ($0.01) |
Basic earnings per share (in dollars per share) | ' | $0.52 | $0.41 | $0.46 | $0.31 | $0.35 | $0.30 | $0.21 | $0.26 | $1.71 | $1.12 | $1.18 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations (in dollars per share) | ' | $0.51 | $0.40 | $0.45 | $0.31 | $0.34 | $0.29 | $0.21 | $0.26 | $1.68 | $1.09 | $1.16 |
Diluted earnings per share (in dollars per share) | ' | $0.51 | $0.40 | $0.45 | $0.31 | $0.34 | $0.29 | $0.21 | $0.26 | $1.67 | $1.09 | $1.14 |
Discontinued_operations_Detail
Discontinued operations (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Operating results of the discontinued operations included in the consolidated statements of operations | ' | ' | ' |
Loss from operations before income taxes | ($1,053,000) | ' | ($219,000) |
Benefit from income taxes | -418,000 | ' | -86,000 |
Loss from discontinued operations | -635,000 | ' | -133,000 |
Gain (loss) on disposal before income taxes | 398,000 | 57,000 | -1,390,000 |
Provision for (benefit from) income taxes | 157,000 | 23,000 | -549,000 |
Gain/(loss) on disposal | 241,000 | 34,000 | -841,000 |
Income (loss) from discontinued operations | -394,000 | 34,000 | -974,000 |
Net payments related to discontinued operations | -619,000 | ' | -725,000 |
ERP business | ' | ' | ' |
Discontinued operations | ' | ' | ' |
Pre-tax loss on sale of business | ' | ' | 1,700,000 |
Operating results of the discontinued operations included in the consolidated statements of operations | ' | ' | ' |
Net payments related to discontinued operations | ' | ' | 700,000 |
Unison Maximus Inc. subsidiary | ' | ' | ' |
Operating results of the discontinued operations included in the consolidated statements of operations | ' | ' | ' |
Gain (loss) on disposal before income taxes | $400,000 | $100,000 | $300,000 |
Related_party_transactions_Det
Related party transactions (Details) (Winston & Strawn, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Winston & Strawn | ' | ' | ' |
Related party transactions | ' | ' | ' |
Legal fees paid | $0.20 | $0.30 | $0.20 |
Subsequent_events_Details
Subsequent events (Details) (Subsequent events, USD $) | 0 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Oct. 04, 2013 |
Subsequent events | ' |
Subsequent events | ' |
Cash dividend declared (in dollars per share) | $0.05 |
Dividend payable | $3.10 |