Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Nov. 06, 2015 | Mar. 31, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | MAXIMUS INC | ||
Entity Central Index Key | 1,032,220 | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2015 | ||
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 | $ 4,308,922,065 | ||
Entity Common Stock, Shares Outstanding | 65,334,671 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenue | $ 2,099,821 | $ 1,700,912 | $ 1,331,279 |
Cost of revenue | 1,587,104 | 1,248,789 | 945,246 |
Gross profit | 512,717 | 452,123 | 386,033 |
Selling, general and administrative expenses | 238,792 | 220,925 | 193,827 |
Amortization of intangible assets | 9,348 | 5,890 | 4,883 |
Acquisition-related expenses | 4,745 | 2,168 | |
Operating income | 259,832 | 225,308 | 185,155 |
Interest expense | 1,398 | ||
Other income, net | 1,385 | 2,061 | 3,867 |
Income before income taxes | 259,819 | 227,369 | 189,022 |
Provision for income taxes | 99,770 | 81,973 | 71,673 |
Net Income | 160,049 | 145,396 | 117,349 |
Income/(loss) attributable to noncontrolling interests | 2,277 | (44) | 618 |
Net income attributable to MAXIMUS | $ 157,772 | $ 145,440 | $ 116,731 |
Basic earnings per share attributable to MAXIMUS (in dollars per share) | $ 2.37 | $ 2.15 | $ 1.71 |
Diluted earnings per share attributable to MAXIMUS (in dollars per share) | 2.35 | 2.11 | 1.67 |
Dividends per share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.18 |
Weighted average shares outstanding: | |||
Basic (in shares) | 66,682 | 67,680 | 68,165 |
Diluted (in shares) | 67,275 | 69,087 | 69,893 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 160,049 | $ 145,396 | $ 117,349 |
Foreign currency translation adjustments | (22,570) | (7,757) | (12,253) |
Interest rate hedge, net of income taxes of $16, $- and $- | (25) | ||
Comprehensive income | 137,454 | 137,639 | 105,096 |
Comprehensive income/(loss) attributable to noncontrolling interests | 2,277 | (44) | 618 |
Comprehensive income attributable to MAXIMUS | $ 135,177 | $ 137,683 | $ 104,478 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands | 12 Months Ended |
Sep. 30, 2015USD ($) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |
Interest rate hedge, tax | $ 16 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 74,672 | $ 158,112 |
Accounts receivable-billed and billable, net | 396,177 | 263,011 |
Accounts receivable - unbilled | 30,929 | 26,556 |
Deferred income taxes | 18,992 | 28,108 |
Prepaid expenses and other current assets | 60,129 | 56,673 |
Total current assets | 580,899 | 532,460 |
Property and equipment, net | 137,830 | 80,246 |
Capitalized software, net | 32,483 | 39,734 |
Goodwill | 376,302 | 170,626 |
Intangible assets, net | 102,358 | 39,239 |
Deferred contract costs, net | 19,126 | 12,046 |
Deferred compensation plan assets | 19,310 | 17,126 |
Other assets | 11,863 | 9,519 |
Total assets | 1,280,171 | 900,996 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 155,411 | 103,181 |
Accrued compensation and benefits | 99,700 | 94,137 |
Deferred revenue | 77,642 | 55,878 |
Income taxes payable | 11,709 | 4,693 |
Long-term debt, current portion | 356 | 157 |
Other liabilities | 11,562 | 7,275 |
Total current liabilities | 356,380 | 265,321 |
Deferred revenue, less current portion | 52,954 | 32,257 |
Deferred tax liability | 15,159 | 21,383 |
Long-term debt | 210,618 | 1,060 |
Deferred compensation plan liabilities, less current portion | 20,635 | 18,768 |
Other liabilities | 8,726 | 6,022 |
Total liabilities | $ 664,472 | $ 344,811 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, no par value; 100,000 shares authorized; 65,437 and 66,613 shares issued and outstanding at September 30, 2015 and 2014, at stated amount, respectively | $ 446,132 | $ 429,857 |
Accumulated other comprehensive income | (22,365) | 230 |
Retained earnings | 188,611 | 125,875 |
Total MAXIMUS shareholders' equity | 612,378 | 555,962 |
Noncontrolling interests | 3,321 | 223 |
Total equity | 615,699 | 556,185 |
Total liabilities and equity | $ 1,280,171 | $ 900,996 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 65,437 | 66,613 |
Common stock, shares outstanding | 65,437 | 66,613 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 160,049 | $ 145,396 | $ 117,349 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property, plant, equipment and capitalized software | 46,849 | 42,778 | 30,933 |
Amortization of intangible assets | 9,348 | 5,890 | 4,883 |
Deferred income taxes | 807 | 2,898 | 2,396 |
Stock compensation expense | 17,237 | 17,278 | 14,555 |
Changes in assets and liabilities, net of effects of business combinations: | |||
Accounts receivable-billed and billable | (103,774) | (144) | (87,999) |
Accounts receivable-unbilled | (911) | 2,056 | (14,998) |
Prepaid expenses and other current assets | (6,475) | (2,540) | (2,492) |
Deferred contract costs | (7,245) | 2,254 | (5,073) |
Accounts payable and accrued liabilities | 44,351 | (2,928) | 31,453 |
Accrued compensation and benefits | (3,157) | 12,277 | 21,308 |
Deferred revenue | 47,948 | 2,841 | 6,304 |
Income taxes | 9,134 | (10,974) | 2,034 |
Other assets and liabilities | (7,944) | (3,482) | 285 |
Cash provided by operating activities | 206,217 | 213,600 | 120,938 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | (289,212) | (2,670) | (68,055) |
Purchases of property and equipment | (98,994) | (36,262) | (43,580) |
Capitalized software costs | (6,155) | (10,886) | (18,596) |
Proceeds from note receivable | 489 | 429 | 398 |
Cash used in investing activities | (393,872) | (49,389) | (129,833) |
Cash flows from financing activities: | |||
Cash dividends paid | (11,927) | (12,187) | (12,272) |
Repurchases of common stock | (82,787) | (111,141) | (33,287) |
Stock compensation tax benefit | 9,474 | 9,665 | 10,569 |
Tax withholding related to RSU vesting | (12,451) | (14,681) | (8,868) |
Stock option exercises | 868 | 1,362 | 2,168 |
Issuance of debt | 330,993 | 15,000 | |
Repayment of debt | (121,611) | (15,162) | (172) |
Costs for expansion | (1,444) | ||
Cash provided by/(used in) financing activities | 111,115 | (127,144) | (41,862) |
Effect of exchange rate changes on cash | (6,900) | (4,572) | (12,938) |
Net (decrease) increase in cash and cash equivalents | (83,440) | 32,495 | (63,695) |
Cash and cash equivalents, beginning of period | 158,112 | 125,617 | 189,312 |
Cash and cash equivalents, end of period | $ 74,672 | $ 158,112 | $ 125,617 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Noncontrolling Interest | Total |
Balance at Sep. 30, 2012 | $ 395,967 | $ 20,240 | $ 34,899 | $ (351) | $ 450,755 |
Balance (in shares) at Sep. 30, 2012 | 67,971 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 116,731 | 618 | 117,349 | ||
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) | (1,000) | |||
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 | ||||
Tax withholding related to RSU vesting | $ (14,996) | (14,996) | |||
Stock options exercised and RSUs vesting | $ 2,168 | 2,168 | |||
Stock options exercised and RSUs vesting (in shares) | 1,325 | ||||
Balance at Sep. 30, 2013 | $ 415,271 | 7,987 | 106,250 | 267 | 529,775 |
Balance (in shares) at Sep. 30, 2013 | 68,525 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 145,440 | (44) | 145,396 | ||
Foreign currency translation | (7,757) | (7,757) | |||
Cash dividends | (12,187) | (12,187) | |||
Dividends on RSUs | $ 493 | (493) | |||
Repurchases of common stock | (113,135) | $ (113,135) | |||
Repurchases of common stock (in shares) | (2,672) | (2,700) | |||
Stock compensation expense | $ 17,278 | $ 17,278 | |||
Stock compensation tax benefit | 9,665 | 9,665 | |||
Tax withholding related to RSU vesting | (14,212) | (14,212) | |||
Stock options exercised and RSUs vesting | $ 1,362 | 1,362 | |||
Stock options exercised and RSUs vesting (in shares) | 760 | ||||
Balance at Sep. 30, 2014 | $ 429,857 | 230 | 125,875 | 223 | $ 556,185 |
Balance (in shares) at Sep. 30, 2014 | 66,613 | 66,613 | |||
Increase (Decrease) in Shareholders' Equity | |||||
Net income | 157,772 | 2,277 | $ 160,049 | ||
Foreign currency translation | (22,570) | (22,570) | |||
Interest rate hedge, net of income taxes | (25) | (25) | |||
Cash dividends | (11,852) | (75) | (11,927) | ||
Dividends on RSUs | $ 397 | (397) | |||
Repurchases of common stock | (82,787) | $ (82,787) | |||
Repurchases of common stock (in shares) | (1,619) | (1,600) | |||
Stock compensation expense | $ 17,237 | $ 17,237 | |||
Stock compensation tax benefit | 9,474 | 9,474 | |||
Tax withholding related to RSU vesting | (11,701) | (11,701) | |||
Stock options exercised and RSUs vesting | $ 868 | 868 | |||
Stock options exercised and RSUs vesting (in shares) | 443 | ||||
Addition of noncontrolling interest from acquisition | 896 | 896 | |||
Balance at Sep. 30, 2015 | $ 446,132 | $ (22,365) | $ 188,611 | $ 3,321 | $ 615,699 |
Balance (in shares) at Sep. 30, 2015 | 65,437 | 65,437 |
Business and summary of signifi
Business and summary of significant accounting policies | 12 Months Ended |
Sep. 30, 2015 | |
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. We conduct our operations through three business segments: Health Services, U.S. Federal Services and Human Services. The Health Services Segment provides a variety of BPS, as well as related consulting services, for state, provincial and national government programs, including Medicaid, CHIP and the ACA in the United States, Health Insurance BC (British Columbia) in Canada and the Health Assessment Advisory Service and Fit for Work in the United Kingdom. The U.S. Federal Services Segment provides system development, software development and program management for various civilian U.S. federal programs. The Human Services Segment provides national, state and county human services agencies with a variety of business process services and related consulting services for welfare to work, child support, higher education and K-12 special education programs. (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. Where MAXIMUS owns less than 100% of the share capital of its subsidiaries, but is still considered to have sufficient ownership to control the businesses, the results of these business operations are consolidated within our financial statements. The ownership interests held by other parties are shown as noncontrolling interests. (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 each reporting period. Actual results could differ from those estimates. Our significant estimates include estimates of the fair value of assets acquired and liabilities assumed in business combinations, estimates of the collectability of receivables, estimates of future discounts in performance-based contracts, evaluation of asset impairment, accrual of estimated liabilities and valuation of acquisition-related contingent consideration liabilities. (d) Revenue recognition Revenue is generated from contracts with various pricing arrangements, including: • performance-based criteria, constituting approximately 44% of total revenue in fiscal year 2015; • costs incurred plus a negotiated fee ("cost-plus") (29%); • fixed-price (21%); and • time-and-materials (6%). 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 occurs when we have achieved the performance goal. This revenue generally occurs when amounts are billable to customers and may result in revenue being recognized in irregular increments. In certain performance-based contracts, we may negotiate arrangements where we are reimbursed at higher levels at the beginning of an arrangement. Where we believe the rates in the latter part of the contract represent a significant and incremental discount to the customer, we recognize revenue at an average per-transaction rate. This results in a deferred revenue balance and requires us to estimate future volumes over the life of an arrangement. Adjustments to estimates of future volumes result in adjustments to revenue. Revenue on cost-plus contracts is recognized based on costs incurred plus the negotiated fee earned. In certain contracts with the U.S. Federal Government, we may be paid an award fee, based upon the quality of the service we perform. Where this fee can be objectively determined, it is recognized ratably over the period of performance, which is between four and six months. Where the fee cannot be determined objectively, all revenue is deferred until the fee has been fixed. 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 revenue being recognized at different points from amounts being billable. Where we enter into contracts where significant uncertainty exists over the ability of management to estimate the future costs, we 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 estimated 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. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This new standard will change the manner in which we evaluate revenue recognition for all contracts with customers, although the effect of the changes on revenue recognition will vary from contract to contract. We will adopt this standard during our 2019 fiscal year. The standard permits a retrospective or cumulative effect transition method. We anticipate that we will adopt the new standard using the retrospective method. We are continuing to evaluate the effect of this standard on our business. (e) Cash and cash equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Where we are obliged to hold cash balances as collateral for lease, credit card or letter of credit arrangements, or where we hold funds on behalf of clients, this balance is reported within other current assets. The restricted cash balance was $13.4 million and $10.6 million at September 30, 2015 and 2014, respectively. (f) Accounts receivable—billed and billable Accounts receivable balances includes both those balances invoiced and those where amounts are ready to be invoiced and the funds are collectible within standard contract terms. We record our receivable balances at their face amount less an allowance for doubtful accounts. We re-evaluate our client receivables on a quarterly basis, especially receivables that are past due, and reassess our allowance for doubtful accounts based on specific client collection issues. (g) Business combinations and goodwill The purchase price of an acquired business is allocated to tangible assets, separately identifiable intangible assets acquired and liabilities assumed based upon their respective fair values. Any excess balance is recorded as goodwill. Costs incurred directly related to an acquisition, including legal, accounting and valuation services, are expensed as incurred. Intangible assets are separately identified and valued using a third-party consultant. These assets are amortized on a straight-line basis over useful lives estimated at the time of the business combination. Goodwill is not amortized but is subject to impairment testing on an annual basis, or more frequently if impairment indicators arise. Impairment testing is performed at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment (the component level) if discrete financial information is prepared and reviewed regularly by segment management. However, components are aggregated if they have similar economic characteristics. 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. Our reporting units are consistent with our operating segments, namely Health Services, U.S. Federal Services and Human Services. We perform our annual impairment test as of July 1 of each year. At July 1, 2015, we performed the annual impairment test and determined that there had been no impairment of goodwill. In performing this assessment, we utilized 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 our market value at the date of the test in order to verify the calculation. (h) 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 our 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 our 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 related to long-term service contracts. These costs include direct and incremental costs incurred prior to the commencement of providing service to our customer. These costs are expensed over the period the services are provided. All these assets are depreciated on a straight-line basis. We review long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. Our review is based on our projection of the undiscounted future operating cash flows of the related asset group. To the extent such projections indicate that future undiscounted cash flows are not sufficient to recover the carrying amount, we recognize a non-cash impairment charge to reduce the carrying amount to equal projected future discounted cash flows. No impairment charges were recorded in the three years ending September 30, 2015. (i) Income taxes Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities and are measured by applying enacted tax rates and laws for the taxable years in which those differences are expected to reverse. In addition, a valuation allowance is recorded if it is believed more likely than not that a deferred tax asset will not be fully realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would "more likely than not" sustain the position following an audit. For tax positions meeting the "more likely than not" threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. (j) 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. (k) 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. (l) Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other amounts included within current assets and liabilities that meet the definition of a financial instrument approximate fair value due to the short-term nature of these balances. We hold investments in a Rabbi Trust on behalf of our deferred compensation plan. These assets are recorded on our balance sheet at fair value. These assets have quoted prices in active markets. See Note 13 for further details. During 2015, we entered into a derivative arrangement to reduce our exposure to interest rate fluctuations on our credit facility. The related liability of less than $0.1 million is recorded on our balance sheet at fair value. The inputs to calculate this balance are based upon prices and other factors which are observable in similar markets. See Note 6 for further details. In 2010, we acquired DeltaWare Systems, Inc. As part of the acquisition price, we agreed to pay contingent consideration based upon future sales of this business. This liability is recorded on our balance sheet at estimated fair value. The valuation of this asset is derived from internal estimates of future performance and not from inputs that are observable. See Note 5 for further details. (m) Reclassifications Certain financial results have been reclassified to conform to the current year presentation. We have made changes to our segment presentation. See Note 2. "Business segments" for more information. |
Business segments
Business segments | 12 Months Ended |
Sep. 30, 2015 | |
Business segments | |
Business segments | 2. Business segments The Company is organized and managed based upon the services it provides. As our business changes, we revise our internal reporting and the manner in which our Chief Executive Officer operates and reviews the results of our business. This reporting forms the basis for our external reporting of our business segments. During the fourth quarter of fiscal year 2015, we revised our reporting structure to accommodate three business segments, adding a U.S. Federal Services Segment that comprises the work we perform for the U.S. Federal Government, as well as some U.S.-based appeals work. The businesses within this new segment were previously included within our Health Services Segment and include the results of the businesses acquired with Acentia, LLC (Acentia) in April 2015. We made these changes to our operations and internal reporting due to our acknowledgement that the U.S. Federal Government is a distinct customer with different procurement methods and regulations, the scale of our business with the U.S. Federal Government and the growth of our federal business from a primarily health-focused business to a broader business covering several federal agencies. Expenses which are not specifically included in the segments are included in the corporate category, which primarily consist of amortization of intangible assets and the direct costs of acquisitions. These corporate costs are excluded from measuring each segment's operating performance. We also transferred a small division from our Health Services Segment to our Human Services Segment. The results of these segments for the three years ended September 30, 2015 are shown below (in thousands). These results are presented for all years on a basis consistent with our existing business segments. Year ended September 30, 2015 2014 2013 Revenue: Health Services $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Profit: Health Services $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative expense: Health Services $ $ $ U.S. Federal Services Human Services Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income Health Services $ $ $ U.S. Federal Services Human Services Amortization of intangible assets ) ) ) Acquisition-related expenses ) — ) Other ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: Health Services $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Acquisition-related expenses are costs directly incurred from the purchases of Acentia and Remploy in 2015 and HML in 2013, as well as any unsuccessful transactions. We principally operate in the United States, the United Kingdom, Australia, Canada, Saudi Arabia and New Zealand. Our revenue was distributed as follows (in thousands): Year ended September 30, 2015 2014 2013 United States $ $ $ United Kingdom Australia Rest of World ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Identifiable assets for the segments are shown below (in thousands): Year Ended September 30, 2015 2014 Health Services $ $ U.S. Federal Services Human Services Corporate/Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Our long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands): Year Ended September 30, 2015 2014 United States $ $ Australia Canada United Kingdom Rest of World ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Concentrations of credit risk a
Concentrations of credit risk and major customers | 12 Months Ended |
Sep. 30, 2015 | |
Concentrations of credit risk and major customers | |
Concentrations of credit risk and major customers | 3. Concentrations of credit risk and major customers Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of accounts receivable, billed, billable and unbilled. The majority of our business is in the United States. Revenue from foreign projects and offices was 26%, 23% and 25% of total revenue for the years ended September 30, 2015, 2014 and 2013, respectively. In the year ended September 30, 2015, approximately 50% of our total revenue was derived from state government agencies, many of whose programs received significant federal funding, 22% from foreign government agencies, 20% from U.S.-based Federal Government agencies, and 8% from other sources including local municipalities and commercial customers. We believe that the credit risk associated with our receivables is limited due to the credit worthiness of these customers. During fiscal year 2015, the U.S. Federal Government and the state of New York each provided more than 10% of our annual revenue. Revenue from the U.S. Federal Government was exclusively within the U.S. Federal Segment. Revenue from the state of New York was exclusively within our Health Services Segment. The proportion of revenue recognized from customers providing in excess of 10% of our consolidated revenue for each of the three years ended September 30, 2015 was from the following governments: Year ended September 30, 2015 2014 2013 U.S. Federal % % % New York % * * Australia * % % California * % * Texas * % % * Government provided less than 10% of our consolidated revenue in this year. |
Earnings per share
Earnings per share | 12 Months Ended |
Sep. 30, 2015 | |
Earnings per share | |
Earnings per share | 4. Earnings per share The weighted average number of shares outstanding used to compute earnings per shares was as follows (in thousands): Year ended September 30, 2015 2014 2013 Weighted average shares outstanding Effect of employee stock options and unvested restricted stock awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for diluted earnings per share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended September 30, 2015 and 2014, 15,000 and 286,000 unvested restricted stock units, respectively, have been excluded from the calculation of diluted earnings per share as the effect of including them would have been anti-dilutive. |
Business combinations
Business combinations | 12 Months Ended |
Sep. 30, 2015 | |
Business combinations | |
Business combinations | 5. Business combinations Acentia On April 1, 2015 (the "acquisition date"), we acquired 100% of the ownership interests of Acentia for cash consideration of $293.5 million. Acentia provides system modernization, software development, program management and other information technology services and solutions to the U.S. Federal Government. We acquired Acentia, among other reasons, to expand our ability to provide complementary business services and offerings across government markets. The acquired assets and liabilities have been integrated into our U.S. Federal Services Segment. We have completed the process of allocating the acquisition price to the fair value of the assets and liabilities of Acentia at the acquisition date with the exception of balances relating to current and deferred taxes (in thousands). Updated through June 30, 2015 Adjustments Updated through September 30, 2015 Cash consideration, net of cash acquired $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable and unbilled receivables $ $ $ Other current assets ) Property and equipment Intangible assets—customer relationships — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total identifiable assets acquired ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and other liabilities ) Deferred revenue — Capital lease obligations — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net identifiable assets acquired Goodwill ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net assets acquired $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The excess of the acquisition date consideration over the estimated fair value of the net assets acquired was recorded as goodwill. We consider the goodwill to represent the value of the assembled workforce of Acentia, as well as the enhanced knowledge and capabilities resulting from this business combination. Approximately $150 million of the goodwill balance is anticipated to be deductible for tax purposes. The intangible assets acquired represent customer relationships. These will be amortized on a straight-line basis over 14 years. During the year ended September 30, 2015, Acentia contributed $104.0 million and $8.9 million of revenue and operating income, respectively. The following table presents certain results for the years ended September 30, 2015 and 2014 as though the acquisition of Acentia had occurred on October 1, 2013. The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of our results if the acquisition had taken place on that date. The pro forma results presented below include amortization charges for acquired intangible assets and adjustments to interest expense incurred and exclude related acquisition expenses (in thousands, except per share data). Unaudited pro forma results for the year ended September 30, 2015 2014 Revenue $ $ Net income Basic earnings per share attributable to MAXIMUS $ $ Diluted earnings per share attributable to MAXIMUS $ $ Remploy On April 7, 2015 (the "Remploy acquisition date"), we acquired 70% of the ownership interests of Remploy (2015) Limited, whose assets had previously operated under the "Remploy" tradename. The remaining 30% is held in a trust for the benefit of the employees. The acquisition consideration was $3.0 million (£2.0 million). The purchase agreement stipulated that the net assets of Remploy were zero on the Remploy acquisition date as calculated using U.K. accounting principles. The noncontrolling interest was valued at $0.9 million (£0.6 million) on the Remploy acquisition date. Remploy provides services to the U.K. Government, particularly in supporting employment opportunities for the disabled. We acquired Remploy to complement our welfare-to-work services in the U.K. The acquired assets and liabilities have been integrated into our Human Services Segment. The principal asset held by Remploy on the Remploy acquisition date was a contract worth $4.6 million. This asset will be amortized over two years on a straight-line basis. Centacare On January 31, 2014, we acquired certain businesses from Centacare for $2.7 million ($3.1 million Australian) in cash. The operations of these businesses are consistent with the welfare-to-work services we provide in Australia. The Company acquired these businesses in order to expand our operations in Australia. Of the purchase price, we allocated $3.2 million to intangible assets, representing customer relationships, and $0.5 million to deferred revenue. The intangible assets will be amortized over the anticipated lives of the customer relationships, which are approximately four years. Health Management Limited On July 1, 2013 (the "HML acquisition date"), we 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). HML provides independent health assessments within the U.K. We acquired HML, among other reasons, to expand the Company's independent medical assessment business and to establish a strong presence in the U.K. health services market. The acquired assets and business have been integrated into our Health Services Segment. We allocated the acquisition price to the fair value of the assets and liabilities of HML at the HML acquisition date. The assets and liabilities of HML recorded in our financial statements at the acquisition date are summarized below (in thousands): HML balance sheet on HML acquisition date Cash consideration, net of cash acquired $ Stock consideration ​ ​ ​ ​ ​ Purchase consideration, net of cash acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable and unbilled receivables $ Other current assets Property and equipment Intangible assets ​ ​ ​ ​ ​ Total identifiable assets acquired ​ ​ ​ ​ ​ Accounts payable and other liabilities Deferred revenue Current income tax liability Deferred tax liability ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net identifiable assets acquired Goodwill ​ ​ ​ ​ ​ Net assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The difference between the HML acquisition date fair value of the consideration and the estimated fair value of the net assets acquired was recorded as goodwill. We consider 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 deductible for tax purposes. The valuation of the intangible assets acquired is summarized below (in thousands). Useful life Fair value Customer relationships 20 years $ Technology-based intangible assets 2 years ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average amortization period was 19.5 years. DeltaWare Systems, Inc. On February 10, 2010 (the "DeltaWare acquisition date"), we acquired 100% of the share capital of DeltaWare Systems, Inc. (DeltaWare). As part of the acquisition agreement, we must pay the former owners of DeltaWare up to $4.0 million (Canadian). These payments, considered contingent consideration, will be made based upon sales of DeltaWare's products in particular geographic markets prior to December 2016. No such sales have been made to date and the likelihood of future sales between this time and December 2016 is considered low. During fiscal year 2015, we have reduced our estimate of our obligation to zero. We review the likelihood of future sales on a quarterly basis and, to the extent that sales opportunities are identified, proposals submitted or contracts won, we update our probability weighted assessment of payment. Changes in this assessment 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 $1.0 million (Canadian) 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, 2014 $ Reduction in estimate ) Foreign currency translation ) ​ ​ ​ ​ ​ Balance at September 30, 2015 $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Debt
Debt | 12 Months Ended |
Sep. 30, 2015 | |
Debt | |
Debt | 6. Debt Credit Facilities On March 9, 2015, we entered into an amendment to our unsecured credit agreement (the "Credit Agreement"). The Credit Agreement, as amended, provides for a revolving line of credit up to $400 million that may be used for revolving loans, swingline loans (subject to a sublimit of $5 million), and to request letters of credit, subject to a sublimit of $30 million. The line of credit is available for general corporate purposes, including working capital, capital expenditures and acquisitions. The arrangement will terminate on March 9, 2020, at which time all outstanding borrowings must be repaid. On April 1, 2015, we borrowed $225 million under the Credit Agreement in order to fund our acquisition of Acentia. Additional borrowings and repayments were subsequently made to fund working capital and capital expenditure requirements. The Credit Agreement permits us to make borrowings in currencies other than the United States Dollar. At September 30, 2015, we have U.S. Dollar borrowings of $202 million and Canadian Dollar borrowings of $7.7 million (10.3 million Canadian Dollars). In addition to borrowings under the Credit Facility, we have an outstanding loan of $0.9 million (1.2 million Canadian Dollars) with the Atlantic Innovation Fund of Canada. There is no interest charge on this loan. The Atlantic Innovation Fund loan is repayable over 27 remaining quarterly installments. At September 30, 2015, we held three letters of credit under the Credit Agreement totaling $0.8 million. Each of these letters of credit may be called by vendors 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, secured with restricted cash balances, are held with another financial institution to cover similar obligations to customers. The Credit Agreement requires us to comply with certain financial covenants and other covenants including a maximum total leverage ratio and a minimum fixed charge coverage ratio. We were in compliance with all covenants as of September 30, 2015. Our obligations under the Credit Agreement are guaranteed by material domestic subsidiaries of the Company. The Credit Facility is currently unsecured. In the event that our total leverage ratio, as defined in the credit agreement, exceeds 2.5 to 1, the Credit Agreement will become secured by the assets of the parent company and certain of its subsidiaries. At September 30, 2015, our total leverage ratio was less than 1.0:1.0. 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 our 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. As of September 30, 2015, interest accrued at a rate of 1.19%. Derivative Arrangement In order to add stability to our interest expense and manage our exposure to interest rate movements, we entered into a derivative arrangement to fix payments on part of our outstanding loan balance. We will pay a fixed rate of interest to a financial institution and receive a balance equivalent to the floating rate payable. At September 30, 2015, payments on $53.3 million of our principal balance are fixed. The principal balance subject to this derivative arrangement will decline through September 30, 2016. At September 30, 2015, the fair value of this derivative instrument was less than $0.1 million and included in accounts payable and accrued liabilities in the consolidated balance sheets. As this cash flow hedge is considered effective, the loss related to the decline in the fair value of this derivative instrument is reported in Accumulated Other Comprehensive Income (AOCI) in the Statement of Comprehensive Income. We have agreements with each of our interest rate swap counterparties that contain a provision providing that we could be declared in default on our derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness. During the year ended September 30, 2015, we made interest payments of $1.2 million. Capital Leases As of September 30, 2015, we recorded capital lease obligations of $0.4 million, which represent liabilities due under capital leases for fixed assets acquired with Acentia. The gross amount of assets recorded under capital leases was $0.5 million with accumulated amortization of $0.2 million as of September 30, 2015.The future minimum lease payments required to be made under the capital leases as of September 30, 2015 are approximately $0.2 million per fiscal year for the next two years. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill and intangible assets | |
Goodwill and intangible assets | 7. Goodwill and intangible assets Changes in goodwill for the years ended September 30, 2015 and 2014 are as follows (in thousands): Health Services U.S. Federal Services Human Services Total Balance as of September 30, 2013 $ $ $ $ Adjustment to goodwill acquired with HML — — Foreign currency translation ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of September 30, 2014 Goodwill acquired with Acentia — — Foreign currency translation ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of September 30, 2015 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ There have been no impairment charges in our goodwill. The following table sets forth the components of intangible assets (in thousands): As of September 30, 2015 As of September 30, 2014 Cost Accumulated Amortization Intangible Assets, net Cost Accumulated Amortization Intangible Assets, net Customer contracts and relationships $ $ $ $ $ $ Trademarks and trade names Technology-based intangible assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The intangible assets include $4.0 million of fully amortized technology-based assets still in use. Our intangible assets have a weighted average remaining life of 12.5 years, comprising 12.8 years for customer contracts and relationships, 2.0 years for trademarks and trade names and 2.5 years for technology-based intangible assets. Estimated future amortization expense is estimated as follows (in thousands): Year ending September 30, 2016 $ Year ending September 30, 2017 Year ending September 30, 2018 Year ending September 30, 2019 Year ending September 30, 2020 |
Property and equipment
Property and equipment | 12 Months Ended |
Sep. 30, 2015 | |
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, 2015 2014 Land $ $ Building and improvements Office furniture and equipment Leasehold improvements ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total property and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Fixed asset depreciation expense for the years ended September 30, 2015, 2014 and 2013 was $37.0 million, $32.9 million and $26.3 million, respectively. In fiscal year 2015, the net assets and expense relating to assets held under capital leases were $0.4 million and $0.2 million, respectively. |
Capitalized software
Capitalized software | 12 Months Ended |
Sep. 30, 2015 | |
Capitalized software | |
Capitalized software | 9. Capitalized software Capitalized software consists of the following (in thousands): As of September 30, 2015 2014 Capitalized software $ $ Less: Accumulated amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total Software development costs, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capitalized software amortization expense for the years ended September 30, 2015, 2014 and 2013 was $9.9 million, $9.9 million and $4.6 million, respectively. |
Deferred contract costs
Deferred contract costs | 12 Months Ended |
Sep. 30, 2015 | |
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. These costs include direct and incremental costs incurred prior to the commencement of us providing contracted services to our customers. These costs are expensed over the period the services are provided. Deferred contract costs consist of the following (in thousands): As of September 30, 2015 2014 Deferred contract costs $ $ Less: accumulated amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred contract costs, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Billed and unbilled receivables
Billed and unbilled receivables | 12 Months Ended |
Sep. 30, 2015 | |
Billed and unbilled receivables | |
Billed and unbilled receivables | 11. Billed and unbilled receivables Changes in the reserves against current billed, billable and unbilled accounts receivable were as follows (in thousands): Year ended September 30, 2015 2014 2013 Balance at beginning of year $ $ $ Additions to reserve Deductions ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In evaluating the net realizable value of accounts receivable, we consider such factors as current economic trends, customer credit-worthiness, and changes in the customer payment terms and collection trends. Changes in the assumptions used in analyzing a specific account receivable may result in a reserve being recognized in the period in which the change occurs. At September 30, 2015 and 2014, $12.1 million and $8.8 million of our unbilled receivables related to amounts pursuant to contractual retainage provisions. We anticipate that the majority of the fiscal 2015 balance will be collected during the 2016 fiscal year. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and contingencies | |
Commitments and contingencies | 12. Commitments and contingencies Performance bonds Certain contracts require us to provide a surety bond as a guarantee of performance. At September 30, 2015, we had performance bond commitments totaling $27.3 million. 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. Operating Leases We lease office space and equipment under various operating leases. Lease expense for the years ended September 30, 2015, 2014 and 2013 was $67.1 million, $61.8 million and $49.0 million, respectively. Sublease income for the year ended September 30, 2015 was $0.5 million. Our operating leases may contain rent escalations or concessions. Lease expense is recorded on a straight-line basis over the life of the respective lease. Minimum future lease commitments under leases in effect as of September 30, 2015 are as follows (in thousands): Office space Equipment Total Year ended September 30, 2016 $ $ $ 2017 2018 2019 2020 Thereafter — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total minimum lease payments $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We anticipate future sublease income of $1.2 million per fiscal year through fiscal year 2020. Acquired loss-making contract As part of the acquisition of PSI in April 2012, we 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 our 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 we were unable to estimate the costs of providing these services, management deferred all revenue and costs related to service in anticipation of recognizing revenue at the commencement of the postcontract customer support services. In February 2013, we 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, we reimbursed the client for certain funds received and undertook to provide future services. All other obligations to provide services have been extinguished and no material future costs will be incurred. Accordingly, revenue of $16.0 million was 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. Employment agreements We have an employment agreement with our Chief Executive Officer with a term ending in April 2018. Collective bargaining agreements Approximately 18% of our employees are covered by collective bargaining agreements or similar arrangements. |
Employee benefit plans and defe
Employee benefit plans and deferred compensation | 12 Months Ended |
Sep. 30, 2015 | |
Deferred compensation plan | |
Employee benefit plans and deferred compensation | 13. Employee benefit plans and deferred compensation We have 401(k) plans for the benefit of employees who meet certain eligibility requirements. The plans provide for company match, specified company contributions and discretionary company contributions. During the years ended September 30, 2015, 2014 and 2013, we contributed $4.7 million, $4.3 million and $3.8 million to the 401(k) plans, respectively. We also have a deferred compensation plan, which is a non-qualified plan available to a restricted number of highly compensated employees. The plan enables participants to defer compensation for tax purposes. These deferred employee contributions are held within a rabbi trust with investments directed by the respective employees. The assets of the rabbi trust are available to satisfy the claims of general creditors in the event of bankruptcy. The assets of the plan are sufficient to meet 90% of the liabilities as of September 30, 2015. The assets w ithin the rabbi trust include $8 .7 million invested in mutual funds which have quoted prices in active markets. These assets, as well as the related employee liabilities, are recorded at fair value with changes in fair value being recorded in the statement of operations. |
Equity
Equity | 12 Months Ended |
Sep. 30, 2015 | |
Equity | |
Stock compensation | 14. Equity Stock compensation At September 30, 2015, 2.1 million shares remained available for grants under our 2011 Equity Incentive Plan. We typically issue new shares in satisfying our obligations under our stock plans. We grant equity awards to officers, employees and directors in the form of restricted stock units (RSUs). RSUs issued generally vest ratably over one or five years. The fair value of the RSUs, based on our stock price at the grant date, is expensed in equal installments over the vesting period. For the fiscal years ended September 30, 2015, 2014 and 2013, compensation expense recognized related to RSUs was $17.2 million, $17.3 million and $14.6 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 our RSU activity for the year ended September 30, 2015, is as follows: Shares Weighted-Average Grant-Date Fair Value Non-vested shares outstanding at September 30, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Non-vested shares outstanding at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In addition to the nonvested shares, certain shareholders held approximately 0.8 million vested awards whose issuance has been deferred. The weighted-average grant-date fair value of RSUs granted in the years ended September 30, 2014 and 2013 was $46.49 and $30.66, respectively. The total fair value of RSUs which vested during the years ended September 30, 2015, 2014 and 2013 was $68.6 million, $38.7 million and $40.8 million, respectively. As of September 30, 2015, the total remaining unrecognized compensation cost related to unvested RSUs was $33.1 million. This charge is expected to be realized over the next four years, with a weighted average life of 1.5 years. Prior to fiscal year 2008, we granted stock options to certain employees. These were granted at exercise prices equal to the fair market value of our common stock at the date of grant, vested over a period of four years and expired ten years after the date of the grant. No compensation expenses related to stock options were recorded in any of the years shown. A summary of our stock option activity for the year ended September 30, 2015, is as follows: Options Weighted Average Exercise Price Outstanding at September 30, 2014 $ Exercised ) Expired — — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding and exercisable at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The intrinsic value of outstanding and exercisable stock options at September 30, 2015 was $8.1 million with a weighted average remaining life of 1.5 years. The following table summarizes information pertaining to the stock options vested and exercised for the years presented (in thousands): Year ended September 30, 2015 2014 2013 Aggregate intrinsic value of all stock options exercised $ $ $ Net cash proceeds from exercise of stock options The total income tax benefit recognized in the income statement for share-based compensation arrangements was $7.1 million, $7.0 million and $5.2 million for the fiscal years ended September 30, 2015, 2014 and 2013, respectively. Employees are permitted to forfeit a certain number of shares to cover their personal tax liability, with the Company making tax payments to the relevant authorities. These payments are reported in the statements of cash flows as financing cash flows. During the year ended September 30, 2015, our employees forfeited approximately 195,000 shares in this manner, resulting in a liability of $11.6 million. 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 Under a resolution adopted in August 2015, the Board of Directors authorized the repurchase, at management's discretion, of up to an aggregate of $200 million of our common stock. This resolution superseded similar authorizations from November 2011 and June 2014. The resolution also authorizes the use of option exercise proceeds for the repurchase of our common stock. During the years ended September 30, 2015, 2014 and 2013, we repurchased 1.6 million, 2.7 million and 1.0 million common shares at a cost of $82.8 million, $113.1 million and $32.5 million, respectively. At September 30, 2015, $168.6 million remained available for future stock repurchases. We acquired an additional 0.3 million common shares at a cost of $14.4 million between October 1, 2015 and November 16, 2015. |
Income taxes
Income taxes | 12 Months Ended |
Sep. 30, 2015 | |
Income taxes | |
Income taxes | 15. Income taxes The components of income before income taxes and the corresponding provision for income taxes are as follows (in thousands): Year ended September 30, 2015 2014 2013 Income before income taxes: United States $ $ $ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended September 30, 2015 2014 2013 Current provision: Federal $ $ $ State and local Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax expense (benefit): Federal State and local Foreign ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax expense (benefit) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2015 2014 2013 Federal income tax provision at statutory rate of 35% $ $ $ State income taxes, net of federal benefit Foreign taxation ) ) ) Permanent items Tax credits ) ) ) Valuation allowances on net operating loss carryforwards — ) — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The significant items comprising our deferred tax assets and liabilities as of September 30, 2015 and 2014 are as follows (in thousands): As of September 30, 2015 2014 Deferred tax assets—current: Deferred revenue $ $ Costs deductible in future periods Net operating loss carryforwards Other — ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets—current ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities—current: Accounts receivable—unbilled ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset—current $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets—non-current: Net operating loss carryforwards $ $ Valuation allowance on net operating loss carryforwards — — ​ ​ ​ ​ ​ ​ ​ ​ Net operating loss carryforwards net of valuation reserve Deferred revenue Stock compensation Costs deductible in future periods Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets—non-current ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities—non-current Amortization of goodwill and intangible assets Capitalized software Property and equipment Deferred contract costs — Employee benefit costs — Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liability—non-current $ $ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liability—non-current $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2015, our foreign subsidiaries held approximately $190 million of cumulative earnings. We consider undistributed earnings of our foreign subsidiaries to be indefinitely reinvested outside of the United States and, accordingly, no U.S. deferred taxes have been recorded with respect to such earnings in accordance with the relevant accounting guidance for income taxes. Should the earnings be remitted as dividends, we may be subject to additional U.S. taxes, net of allowable foreign tax credits. It is not practicable to estimate the amount of any additional taxes which may be payable on the undistributed earnings given the various tax planning alternatives we could employ should we decide to repatriate these earnings in a tax-efficient manner. We had $2.1 million and $4.5 million of net operating loss carryforwards in the U.S. at September 30, 2015 and 2014, respectively. These balances resulted in deferred tax assets of $0.7 million and $2.4 million, respectively, and relate exclusively to the losses held by PSI prior to the acquisition in 2012. Although our ability to use these loss carryforwards will be restricted to an annual allowance, we have sufficient profits and time within the jurisdictions where losses have arisen to ensure that these losses will be utilized in full through fiscal year 2017. Accordingly, no reserve has been recorded against these balances. These net operating loss carryforwards expire between 2027 and 2031. We had $0.4 million and $0.8 million of net operating loss carryforwards in Canada at September 30, 2015 and 2014, respectively, resulting in deferred tax assets of $0.1 million and $0.2 million. These net operating loss carryforwards expire through 2027 to 2031. Cash paid for income taxes during the years ended September 30, 2015, 2014, and 2013 was $81.3 million, $79.4 million and $58.2 million, respectively. The provision for income taxes includes all provision to return adjustments included in the year recognized in the financial statements. We account for uncertain tax positions by recognizing the financial statement effects of a tax position only when, based upon the technical merits, it is "more-likely-than-not" that the position will be sustained upon examination. Our net unrecognized tax benefits totaled $1.0 million and $1.1 million at September 30, 2015 and 2014, respectively. The total amount of unrecognized tax benefits that, if recognized, would affect our annual effective income tax rate was $1.0 million at September 30, 2015. We report interest and penalties as a component of income tax expense. In the fiscal years ending September 30, 2015, 2014 and 2013, we recognized interest expense relating to unrecognized tax benefits of less than $0.1 million in each year. The net liability balance at September 30, 2015 and 2014 includes approximately $0.5 million of interest and penalties. We recognize and present uncertain tax positions on a gross basis (i.e., without regard to likely offsets for deferred tax assets, deductions and/or credits that would result from payment of uncertain tax amounts). The reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows (in thousands): Year Ended September 30, 2015 2014 2013 Balance at beginning of year $ $ $ Lapse of statute of limitation ) — ) Reductions for tax positions of prior years ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. We are no longer subject to federal income tax examinations for years before 2012 and to state and local income tax examinations by tax authorities for years before 2010. In international jurisdictions, similar rules apply to filed income tax returns, although the tax examination limitations and requirements may vary. We are no longer subject to audit by tax authorities for foreign jurisdictions for years prior to 2010. |
Quarterly information (unaudite
Quarterly information (unaudited) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly information (unaudited) | |
Quarterly information (unaudited) | 16. Quarterly information (unaudited) Set forth below are selected quarterly statement of operations data for the fiscal years ended September 30, 2015 and 2014. We derived this information from unaudited quarterly financial statements that include, in the opinion of our management, all adjustments necessary for a fair presentation of the information for such periods. Results of operations for any fiscal quarter are not necessarily indicative of results for any future period. Earnings per share amounts are computed 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. Quarter Ended Dec. 31, 2014 March 31, 2015 June 30, 2015 Sept. 30, 2015 (In thousands, except per share data) Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services Amortization of intangible assets ) ) ) ) Acquisition-related expenses ) ) ) ) Other/Corporate ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income Net income attributable to MAXIMUS Diluted earnings per share attributable to MAXIMUS $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended Dec. 31, 2013 March 31, 2014 June 30, 2014 Sept. 30, 2014 (In thousands, except per share data) Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services Amortization of intangible assets ) ) ) ) Other/Corporate ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income Net income attributable to MAXIMUS Diluted earnings per share attributable to MAXIMUS $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2015 | |
Subsequent events. | |
Subsequent Events | 17. Subsequent Event Dividend On October 2, 2015, our 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 30, 2015 to shareholders of record on November 13, 2015. Based on the number of shares outstanding, the payment will be approximately $2.9 million. |
Business and summary of signi26
Business and summary of significant accounting policies (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
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. Where MAXIMUS owns less than 100% of the share capital of its subsidiaries, but is still considered to have sufficient ownership to control the businesses, the results of these business operations are consolidated within our financial statements. The ownership interests held by other parties are shown as noncontrolling interests. |
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 each reporting period. Actual results could differ from those estimates. Our significant estimates include estimates of the fair value of assets acquired and liabilities assumed in business combinations, estimates of the collectability of receivables, estimates of future discounts in performance-based contracts, evaluation of asset impairment, accrual of estimated liabilities and valuation of acquisition-related contingent consideration liabilities. |
Revenue recognition | (d) Revenue recognition Revenue is generated from contracts with various pricing arrangements, including: • performance-based criteria, constituting approximately 44% of total revenue in fiscal year 2015; • costs incurred plus a negotiated fee ("cost-plus") (29%); • fixed-price (21%); and • time-and-materials (6%). 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 occurs when we have achieved the performance goal. This revenue generally occurs when amounts are billable to customers and may result in revenue being recognized in irregular increments. In certain performance-based contracts, we may negotiate arrangements where we are reimbursed at higher levels at the beginning of an arrangement. Where we believe the rates in the latter part of the contract represent a significant and incremental discount to the customer, we recognize revenue at an average per-transaction rate. This results in a deferred revenue balance and requires us to estimate future volumes over the life of an arrangement. Adjustments to estimates of future volumes result in adjustments to revenue. Revenue on cost-plus contracts is recognized based on costs incurred plus the negotiated fee earned. In certain contracts with the U.S. Federal Government, we may be paid an award fee, based upon the quality of the service we perform. Where this fee can be objectively determined, it is recognized ratably over the period of performance, which is between four and six months. Where the fee cannot be determined objectively, all revenue is deferred until the fee has been fixed. 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 revenue being recognized at different points from amounts being billable. Where we enter into contracts where significant uncertainty exists over the ability of management to estimate the future costs, we 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 estimated 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. In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers. This new standard will change the manner in which we evaluate revenue recognition for all contracts with customers, although the effect of the changes on revenue recognition will vary from contract to contract. We will adopt this standard during our 2019 fiscal year. The standard permits a retrospective or cumulative effect transition method. We anticipate that we will adopt the new standard using the retrospective method. We are continuing to evaluate the effect of this standard on our business. |
Cash and cash equivalents | (e) Cash and cash equivalents We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Where we are obliged to hold cash balances as collateral for lease, credit card or letter of credit arrangements, or where we hold funds on behalf of clients, this balance is reported within other current assets. The restricted cash balance was $13.4 million and $10.6 million at September 30, 2015 and 2014, respectively. |
Accounts receivable - billed and billable | (f) Accounts receivable—billed and billable Accounts receivable balances includes both those balances invoiced and those where amounts are ready to be invoiced and the funds are collectible within standard contract terms. We record our receivable balances at their face amount less an allowance for doubtful accounts. We re-evaluate our client receivables on a quarterly basis, especially receivables that are past due, and reassess our allowance for doubtful accounts based on specific client collection issues. |
Business combinations and goodwill | (g) Business combinations and goodwill The purchase price of an acquired business is allocated to tangible assets, separately identifiable intangible assets acquired and liabilities assumed based upon their respective fair values. Any excess balance is recorded as goodwill. Costs incurred directly related to an acquisition, including legal, accounting and valuation services, are expensed as incurred. Intangible assets are separately identified and valued using a third-party consultant. These assets are amortized on a straight-line basis over useful lives estimated at the time of the business combination. Goodwill is not amortized but is subject to impairment testing on an annual basis, or more frequently if impairment indicators arise. Impairment testing is performed at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment (the component level) if discrete financial information is prepared and reviewed regularly by segment management. However, components are aggregated if they have similar economic characteristics. 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. Our reporting units are consistent with our operating segments, namely Health Services, U.S. Federal Services and Human Services. We perform our annual impairment test as of July 1 of each year. At July 1, 2015, we performed the annual impairment test and determined that there had been no impairment of goodwill. In performing this assessment, we utilized 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 our market value at the date of the test in order to verify the calculation. |
Long-lived assets (excluding goodwill) | (h) 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 our 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 our 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 related to long-term service contracts. These costs include direct and incremental costs incurred prior to the commencement of providing service to our customer. These costs are expensed over the period the services are provided. All these assets are depreciated on a straight-line basis. We review long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. Our review is based on our projection of the undiscounted future operating cash flows of the related asset group. To the extent such projections indicate that future undiscounted cash flows are not sufficient to recover the carrying amount, we recognize a non-cash impairment charge to reduce the carrying amount to equal projected future discounted cash flows. No impairment charges were recorded in the three years ending September 30, 2015. |
Income taxes | (i) Income taxes Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax basis of assets and liabilities and are measured by applying enacted tax rates and laws for the taxable years in which those differences are expected to reverse. In addition, a valuation allowance is recorded if it is believed more likely than not that a deferred tax asset will not be fully realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would "more likely than not" sustain the position following an audit. For tax positions meeting the "more likely than not" threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. |
Foreign currency | (j) 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 | (k) 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. |
Fair Value measurements | (l) Fair value measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other amounts included within current assets and liabilities that meet the definition of a financial instrument approximate fair value due to the short-term nature of these balances. We hold investments in a Rabbi Trust on behalf of our deferred compensation plan. These assets are recorded on our balance sheet at fair value. These assets have quoted prices in active markets. See Note 13 for further details. During 2015, we entered into a derivative arrangement to reduce our exposure to interest rate fluctuations on our credit facility. The related liability of less than $0.1 million is recorded on our balance sheet at fair value. The inputs to calculate this balance are based upon prices and other factors which are observable in similar markets. See Note 6 for further details. In 2010, we acquired DeltaWare Systems, Inc. As part of the acquisition price, we agreed to pay contingent consideration based upon future sales of this business. This liability is recorded on our balance sheet at estimated fair value. The valuation of this asset is derived from internal estimates of future performance and not from inputs that are observable. See Note 5 for further details. |
Reclassifications | (m) Reclassifications Certain financial results have been reclassified to conform to the current year presentation. We have made changes to our segment presentation. See Note 2. "Business segments" for more information. |
Business segments (Tables)
Business segments (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Business segments | |
Schedule of results for each of the Company's business segments | The results of these segments for the three years ended September 30, 2015 are shown below (in thousands). Year ended September 30, 2015 2014 2013 Revenue: Health Services $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross Profit: Health Services $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling, general and administrative expense: Health Services $ $ $ U.S. Federal Services Human Services Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income Health Services $ $ $ U.S. Federal Services Human Services Amortization of intangible assets ) ) ) Acquisition-related expenses ) — ) Other ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and amortization: Health Services $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of distribution of revenues | Our revenue was distributed as follows (in thousands): Year ended September 30, 2015 2014 2013 United States $ $ $ United Kingdom Australia Rest of World ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of identifiable assets by segment | Identifiable assets for the segments are shown below (in thousands): Year Ended September 30, 2015 2014 Health Services $ $ U.S. Federal Services Human Services Corporate/Other ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of distribution of total long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets | Our long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands): Year Ended September 30, 2015 2014 United States $ $ Australia Canada United Kingdom Rest of World ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Concentrations of credit risk28
Concentrations of credit risk and major customers (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Concentrations of credit risk and major customers | |
Schedule of revenue recognized from customers | Year ended September 30, 2015 2014 2013 U.S. Federal % % % New York % * * Australia * % % California * % * Texas * % % * Government provided less than 10% of our consolidated revenue in this year. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Earnings per share | |
Schedule of the components of basic and diluted earnings per share | The weighted average number of shares outstanding used to compute earnings per shares was as follows (in thousands): Year ended September 30, 2015 2014 2013 Weighted average shares outstanding Effect of employee stock options and unvested restricted stock awards ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator for diluted earnings per share ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Acentia | |
Business combinations | |
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date | We have completed the process of allocating the acquisition price to the fair value of the assets and liabilities of Acentia at the acquisition date with the exception of balances relating to current and deferred taxes (in thousands). Updated through June 30, 2015 Adjustments Updated through September 30, 2015 Cash consideration, net of cash acquired $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable and unbilled receivables $ $ $ Other current assets ) Property and equipment Intangible assets—customer relationships — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total identifiable assets acquired ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and other liabilities ) Deferred revenue — Capital lease obligations — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net identifiable assets acquired Goodwill ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net assets acquired $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of unaudited pro forma information | The pro forma results presented below include amortization charges for acquired intangible assets and adjustments to interest expense incurred and exclude related acquisition expenses (in thousands, except per share data). Unaudited pro forma results for the year ended September 30, 2015 2014 Revenue $ $ Net income Basic earnings per share attributable to MAXIMUS $ $ Diluted earnings per share attributable to MAXIMUS $ $ |
HML | |
Business combinations | |
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date | The assets and liabilities of HML recorded in our financial statements at the acquisition date are summarized below (in thousands): HML balance sheet on HML acquisition date Cash consideration, net of cash acquired $ Stock consideration ​ ​ ​ ​ ​ Purchase consideration, net of cash acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts receivable and unbilled receivables $ Other current assets Property and equipment Intangible assets ​ ​ ​ ​ ​ Total identifiable assets acquired ​ ​ ​ ​ ​ Accounts payable and other liabilities Deferred revenue Current income tax liability Deferred tax liability ​ ​ ​ ​ ​ Total liabilities assumed ​ ​ ​ ​ ​ Net identifiable assets acquired Goodwill ​ ​ ​ ​ ​ Net assets acquired $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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 $ Technology-based intangible assets 2 years ​ ​ ​ ​ ​ ​ ​ Total intangible assets $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
DeltaWare | |
Business combinations | |
Summary of effect on the financial statements | The effect on the financial statements is summarized below (in thousands): Contingent consideration Balance at September 30, 2014 $ Reduction in estimate ) Foreign currency translation ) ​ ​ ​ ​ ​ Balance at September 30, 2015 $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill and intangible assets | |
Schedule of changes in the carrying amount of goodwill | Changes in goodwill for the years ended September 30, 2015 and 2014 are as follows (in thousands): Health Services U.S. Federal Services Human Services Total Balance as of September 30, 2013 $ $ $ $ Adjustment to goodwill acquired with HML — — Foreign currency translation ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of September 30, 2014 Goodwill acquired with Acentia — — Foreign currency translation ) — ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of September 30, 2015 $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of intangible assets | The following table sets forth the components of intangible assets (in thousands): As of September 30, 2015 As of September 30, 2014 Cost Accumulated Amortization Intangible Assets, net Cost Accumulated Amortization Intangible Assets, net Customer contracts and relationships $ $ $ $ $ $ Trademarks and trade names Technology-based intangible assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total $ $ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of estimated future amortization expense | Estimated future amortization expense is estimated as follows (in thousands): Year ending September 30, 2016 $ Year ending September 30, 2017 Year ending September 30, 2018 Year ending September 30, 2019 Year ending September 30, 2020 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Property and equipment | |
Schedule of property, plant and equipment | Property and equipment, at cost, consists of the following (in thousands): As of September 30, 2015 2014 Land $ $ Building and improvements Office furniture and equipment Leasehold improvements ​ ​ ​ ​ ​ ​ ​ ​ Less: Accumulated depreciation and amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total property and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Capitalized software (Tables)
Capitalized software (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Capitalized software | |
Components of capitalized software | Capitalized software consists of the following (in thousands): As of September 30, 2015 2014 Capitalized software $ $ Less: Accumulated amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total Software development costs, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Deferred contract costs (Tables
Deferred contract costs (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Deferred contract costs | |
Deferred contract costs | Deferred contract costs consist of the following (in thousands): As of September 30, 2015 2014 Deferred contract costs $ $ Less: accumulated amortization ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred contract costs, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Billed and unbilled receivabl35
Billed and unbilled receivables (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Billed and unbilled receivables | |
Schedule of accounts receivable reserve | Changes in the reserves against current billed, billable and unbilled accounts receivable were as follows (in thousands): Year ended September 30, 2015 2014 2013 Balance at beginning of year $ $ $ Additions to reserve Deductions ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Commitments and contingencies | |
Schedule of minimum future lease commitments under leases | Minimum future lease commitments under leases in effect as of September 30, 2015 are as follows (in thousands): Office space Equipment Total Year ended September 30, 2016 $ $ $ 2017 2018 2019 2020 Thereafter — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total minimum lease payments $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Equity | |
Summary of the Company's RSU activity | Shares Weighted-Average Grant-Date Fair Value Non-vested shares outstanding at September 30, 2014 $ Granted Vested ) Forfeited ) ​ ​ ​ ​ ​ ​ ​ ​ Non-vested shares outstanding at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Summary of the Company's stock option activity | Options Weighted Average Exercise Price Outstanding at September 30, 2014 $ Exercised ) Expired — — ​ ​ ​ ​ ​ ​ ​ ​ Outstanding and exercisable at September 30, 2015 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2015 2014 2013 Aggregate intrinsic value of all stock options exercised $ $ $ Net cash proceeds from exercise of stock options |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income taxes | |
Components of income from continuing operations before income taxes | Components of income before income taxes (in thousands): Year ended September 30, 2015 2014 2013 Income before income taxes: United States $ $ $ Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income before income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Provision for income taxes | Components of provision for income taxes (in thousands): Year ended September 30, 2015 2014 2013 Current provision: Federal $ $ $ State and local Foreign ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current provision ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax expense (benefit): Federal State and local Foreign ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax expense (benefit) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for income taxes $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Reconciliation of tax provision using the federal statutory income tax rate to reported provision | The provision for income taxes differs from that which would have resulted from the use of the federal statutory income tax rate as follows (in thousands): Year ended September 30, 2015 2014 2013 Federal income tax provision at statutory rate of 35% $ $ $ State income taxes, net of federal benefit Foreign taxation ) ) ) Permanent items Tax credits ) ) ) Valuation allowances on net operating loss carryforwards — ) — Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income tax expense $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Significant items comprising the Company's deferred tax assets and liabilities | The significant items comprising our deferred tax assets and liabilities as of September 30, 2015 and 2014 are as follows (in thousands): As of September 30, 2015 2014 Deferred tax assets—current: Deferred revenue $ $ Costs deductible in future periods Net operating loss carryforwards Other — ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets—current ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities—current: Accounts receivable—unbilled ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax asset—current $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax assets—non-current: Net operating loss carryforwards $ $ Valuation allowance on net operating loss carryforwards — — ​ ​ ​ ​ ​ ​ ​ ​ Net operating loss carryforwards net of valuation reserve Deferred revenue Stock compensation Costs deductible in future periods Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax assets—non-current ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities—non-current Amortization of goodwill and intangible assets Capitalized software Property and equipment Deferred contract costs — Employee benefit costs — Other ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liability—non-current $ $ ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liability—non-current $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
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, 2015 2014 2013 Balance at beginning of year $ $ $ Lapse of statute of limitation ) — ) Reductions for tax positions of prior years ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at end of year $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Quarterly information (unaudi39
Quarterly information (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Quarterly information (unaudited) | |
Schedule of selected quarterly income statement data | Quarter Ended Dec. 31, 2014 March 31, 2015 June 30, 2015 Sept. 30, 2015 (In thousands, except per share data) Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services Amortization of intangible assets ) ) ) ) Acquisition-related expenses ) ) ) ) Other/Corporate ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income Net income attributable to MAXIMUS Diluted earnings per share attributable to MAXIMUS $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Quarter Ended Dec. 31, 2013 March 31, 2014 June 30, 2014 Sept. 30, 2014 (In thousands, except per share data) Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Health Services $ $ $ $ U.S. Federal Services Human Services Amortization of intangible assets ) ) ) ) Other/Corporate ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Income $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income Net income attributable to MAXIMUS Diluted earnings per share attributable to MAXIMUS $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Business and summary of signi40
Business and summary of significant accounting policies (Details) | 12 Months Ended |
Sep. 30, 2015segment | |
Description of Business | |
Number of business segments | 3 |
Business and summary of signi41
Business and summary of significant accounting policies (Details 2) - Total Revenue | 12 Months Ended |
Sep. 30, 2015 | |
Performance-based contracts | |
Revenue Recognition | |
Percentage of total revenue | 44.00% |
Cost-plus contracts | |
Revenue Recognition | |
Percentage of total revenue | 29.00% |
Fixed-price contracts | |
Revenue Recognition | |
Percentage of total revenue | 21.00% |
Time and materials contracts | |
Revenue Recognition | |
Percentage of total revenue | 6.00% |
Business and summary of signi42
Business and summary of significant accounting policies (Details 3) - USD ($) $ in Millions | Jul. 01, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Business combinations and goodwill | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Cash and cash equivalents | |||
Restricted cash | $ 13.4 | $ 10.6 | |
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 signi43
Business and summary of significant accounting policies (Details 4) $ in Millions | 12 Months Ended |
Sep. 30, 2015USD ($) | |
Long-lived assets excluding goodwill | |
Impairment of Long-Lived Assets Held-for-use | $ 0 |
Maximum | |
Fair value measurements | |
Derivative liability | $ 0.1 |
Business segments (Details)
Business segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Business segments | |||||||||||
Number of business segments | segment | 3 | ||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | $ 578,683 | $ 572,301 | $ 481,794 | $ 467,043 | $ 435,406 | $ 419,899 | $ 439,015 | $ 406,592 | $ 2,099,821 | $ 1,700,912 | $ 1,331,279 |
Gross profit | 125,307 | 143,798 | 124,345 | 119,267 | 112,932 | 112,603 | 120,672 | 105,916 | 512,717 | 452,123 | 386,033 |
Selling, general and administrative expense | 238,792 | 220,925 | 193,827 | ||||||||
Operating income | 61,527 | 71,067 | 62,007 | 65,231 | 51,808 | 55,223 | 64,980 | 53,297 | 259,832 | 225,308 | 185,155 |
Amortization of intangible assets | (3,166) | (3,275) | (1,432) | (1,475) | (1,527) | (1,542) | (1,468) | (1,353) | (9,348) | (5,890) | (4,883) |
Acquisition-related expenses | (172) | (2,459) | (1,514) | (600) | (4,745) | (2,168) | |||||
Depreciation and amortization | 46,849 | 42,778 | 30,933 | ||||||||
Other | (6) | (614) | (598) | ||||||||
Identifiable assets | 1,280,171 | 900,996 | 1,280,171 | 900,996 | |||||||
Other/Corporate | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Selling, general and administrative expense | (102) | 8 | 95 | 5 | (1) | 35 | 563 | 17 | |||
Identifiable assets | 165,580 | 237,565 | 165,580 | 237,565 | |||||||
Health Services | Operating segments | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 296,201 | 298,549 | 270,918 | 243,570 | 230,450 | 228,703 | 230,953 | 216,544 | 1,109,238 | 906,650 | 691,565 |
Gross profit | 54,575 | 69,813 | 69,873 | 59,847 | 59,018 | 54,900 | 51,616 | 48,194 | 254,108 | 213,728 | 172,336 |
Selling, general and administrative expense | 30,507 | 44,470 | 41,476 | 37,840 | 31,150 | 29,153 | 29,709 | 25,544 | 99,815 | 98,172 | 83,131 |
Operating income | 154,293 | 115,556 | 89,205 | ||||||||
Depreciation and amortization | 27,694 | 23,994 | 14,768 | ||||||||
Identifiable assets | 483,215 | 415,821 | 483,215 | 415,821 | |||||||
U.S. Federal Services | Operating segments | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 154,279 | 141,011 | 99,465 | 107,729 | 90,605 | 76,550 | 92,645 | 82,040 | 502,484 | 341,840 | 167,258 |
Gross profit | 36,284 | 34,780 | 22,014 | 25,568 | 24,597 | 24,632 | 33,252 | 28,312 | 118,646 | 110,793 | 73,694 |
Selling, general and administrative expense | 20,903 | 15,536 | 9,637 | 13,318 | 12,239 | 14,046 | 20,026 | 16,787 | 59,252 | 47,695 | 31,128 |
Operating income | 59,394 | 63,098 | 42,566 | ||||||||
Depreciation and amortization | 10,363 | 9,557 | 3,355 | ||||||||
Identifiable assets | 441,521 | 95,367 | 441,521 | 95,367 | |||||||
Human Services | Operating segments | |||||||||||
Financial information for each of the Company's business segments | |||||||||||
Revenue | 128,203 | 132,741 | 111,411 | 115,744 | 114,351 | 114,646 | 115,417 | 108,008 | 488,099 | 452,422 | 472,456 |
Gross profit | 34,448 | 39,205 | 32,458 | 33,852 | 29,317 | 33,071 | 35,804 | 29,410 | 139,963 | 127,602 | 140,003 |
Selling, general and administrative expense | 13,353 | $ 16,803 | $ 13,935 | $ 16,153 | 9,945 | $ 13,601 | $ 17,276 | $ 12,336 | 79,719 | 74,444 | 78,970 |
Operating income | 60,244 | 53,158 | 61,033 | ||||||||
Depreciation and amortization | 8,792 | 9,227 | $ 12,810 | ||||||||
Identifiable assets | $ 189,855 | $ 152,243 | $ 189,855 | $ 152,243 |
Business segments (Details 2)
Business segments (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenues and total long-lived assets | |||||||||||
Revenues | $ 578,683 | $ 572,301 | $ 481,794 | $ 467,043 | $ 435,406 | $ 419,899 | $ 439,015 | $ 406,592 | $ 2,099,821 | $ 1,700,912 | $ 1,331,279 |
Total long-lived assets | 189,623 | 137,106 | 189,623 | 137,106 | |||||||
United States | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenues | 1,559,769 | 1,306,026 | 999,419 | ||||||||
Total long-lived assets | 120,130 | 93,500 | 120,130 | 93,500 | |||||||
Australia | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenues | 178,167 | 170,727 | 157,383 | ||||||||
Total long-lived assets | 33,591 | 8,769 | 33,591 | 8,769 | |||||||
Canada | |||||||||||
Revenues and total long-lived assets | |||||||||||
Total long-lived assets | 19,720 | 27,043 | 19,720 | 27,043 | |||||||
United Kingdom | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenues | 267,702 | 128,363 | 65,718 | ||||||||
Total long-lived assets | 16,141 | 7,731 | 16,141 | 7,731 | |||||||
Rest of World | |||||||||||
Revenues and total long-lived assets | |||||||||||
Revenues | 94,183 | 95,796 | $ 108,759 | ||||||||
Total long-lived assets | $ 41 | $ 63 | $ 41 | $ 63 |
Concentrations of credit risk46
Concentrations of credit risk and major customers (Details) - Total Revenue | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Foreign customers | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 26.00% | 23.00% | 25.00% |
State government agencies | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 50.00% | ||
Foreign government agencies | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 22.00% | ||
U.S.-based federal government agencies | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 20.00% | ||
Other sources including local municipalities and commercial customers | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 8.00% | ||
State of Texas | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | 14.00% | |
State of Texas | Maximum | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | ||
Australia | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | 12.00% | |
Australia | Maximum | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | ||
U.S. Federal | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 20.00% | 17.00% | 12.00% |
State of California | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | ||
State of California | Maximum | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | 10.00% | |
State of New York | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | ||
State of New York | Maximum | |||
Revenue Recognition | |||
Revenue from major customers (as a percent) | 10.00% | 10.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Denominator: | |||
Weighted average shares outstanding | 66,682,000 | 67,680,000 | 68,165,000 |
Effect of employee stock options and unvested restricted stock awards | 593,000 | 1,407,000 | 1,728,000 |
Denominator for diluted earnings per share | 67,275,000 | 69,087,000 | 69,893,000 |
Unvested restricted stock units | |||
Awards excluded from the calculation of diluted earnings per share (in shares) | |||
Awards excluded from the calculation of diluted earnings per share (in shares) | 15,000 | 286,000 |
Business combinations (Details)
Business combinations (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Preliminary Purchase Price Accounting | ||||||||||||
Cash consideration, net of cash acquired | $ 289,212 | $ 2,670 | $ 68,055 | |||||||||
Goodwill | $ 376,302 | $ 170,626 | 376,302 | 170,626 | 171,867 | |||||||
Revenues | 578,683 | $ 572,301 | $ 481,794 | $ 467,043 | 435,406 | $ 419,899 | $ 439,015 | $ 406,592 | 2,099,821 | 1,700,912 | 1,331,279 | |
Operating Income (Loss) | 61,527 | 71,067 | $ 62,007 | $ 65,231 | $ 51,808 | $ 55,223 | $ 64,980 | $ 53,297 | 259,832 | 225,308 | $ 185,155 | |
Acentia | ||||||||||||
Business combinations | ||||||||||||
Share capital acquired (as a percent) | 100.00% | |||||||||||
Preliminary Purchase Price Accounting | ||||||||||||
Cash consideration, net of cash acquired | 293,504 | |||||||||||
Accounts receivable and unbilled receivables | 35,333 | 35,333 | ||||||||||
Other current assets | 5,050 | 5,050 | ||||||||||
Property and equipment | 2,140 | 2,140 | ||||||||||
Total identifiable assets acquired | 112,423 | 112,423 | ||||||||||
Accounts payable and other liabilities | 32,426 | 32,426 | ||||||||||
Deferred revenue | 251 | 251 | ||||||||||
Capital lease obligations | 567 | 567 | ||||||||||
Total liabilities assumed | 33,244 | 33,244 | ||||||||||
Net identifiable assets acquired | 79,179 | 79,179 | ||||||||||
Goodwill | 214,325 | 214,325 | ||||||||||
Net assets acquired | 293,504 | 293,504 | ||||||||||
Goodwill anticipated to be deductible for tax purpose | $ 150,000 | |||||||||||
Revenues | 104,000 | |||||||||||
Operating Income (Loss) | 8,900 | |||||||||||
Pro forma information | ||||||||||||
Revenue | 2,203,347 | 1,912,423 | ||||||||||
Net income | $ 165,822 | $ 155,589 | ||||||||||
Basic earnings per share attributable to MAXIMUS (in dollars per share) | $ 2.48 | $ 2.30 | ||||||||||
Diluted earnings per share attributable to MAXIMUS (in dollars per share) | $ 2.44 | $ 2.25 | ||||||||||
Acentia | Customer relationships | ||||||||||||
Preliminary Purchase Price Accounting | ||||||||||||
Intangible assets | 69,900 | $ 69,900 | ||||||||||
Amortization period of intangible assets | 14 years | |||||||||||
Acentia | Previously reported | ||||||||||||
Preliminary Purchase Price Accounting | ||||||||||||
Cash consideration, net of cash acquired | 292,815 | |||||||||||
Accounts receivable and unbilled receivables | 35,060 | |||||||||||
Other current assets | 5,151 | |||||||||||
Property and equipment | 1,619 | |||||||||||
Total identifiable assets acquired | 111,730 | |||||||||||
Accounts payable and other liabilities | 32,619 | |||||||||||
Deferred revenue | 251 | |||||||||||
Total liabilities assumed | 32,870 | |||||||||||
Net identifiable assets acquired | 78,860 | |||||||||||
Goodwill | 213,955 | |||||||||||
Net assets acquired | 292,815 | |||||||||||
Acentia | Previously reported | Customer relationships | ||||||||||||
Preliminary Purchase Price Accounting | ||||||||||||
Intangible assets | 69,900 | |||||||||||
Acentia | Adjustments | ||||||||||||
Preliminary Purchase Price Accounting | ||||||||||||
Cash consideration, net of cash acquired | $ 689 | |||||||||||
Accounts receivable and unbilled receivables | 273 | |||||||||||
Other current assets | (101) | |||||||||||
Property and equipment | 521 | |||||||||||
Total identifiable assets acquired | 693 | |||||||||||
Accounts payable and other liabilities | (193) | |||||||||||
Capital lease obligations | 567 | |||||||||||
Total liabilities assumed | 374 | |||||||||||
Net identifiable assets acquired | 319 | |||||||||||
Goodwill | 370 | |||||||||||
Net assets acquired | $ 689 |
Business combinations (Details
Business combinations (Details 2) $ in Thousands, £ in Millions | Apr. 07, 2015GBP (£) | Apr. 07, 2015USD ($) | Sep. 30, 2015USD ($) | Apr. 07, 2015USD ($) | Sep. 30, 2014USD ($) |
Preliminary Purchase Price Accounting | |||||
Noncontrolling interests | $ 3,321 | $ 223 | |||
Remploy | |||||
Business combinations | |||||
Share capital acquired (as a percent) | 70.00% | 70.00% | |||
Share capital held in trust for the benefit of employees (as a percent) | 30.00% | 30.00% | |||
Preliminary Purchase Price Accounting | |||||
Purchase consideration, net of cash acquired | £ 2 | $ 3,000 | |||
Net assets | $ 0 | ||||
Noncontrolling interests | £ 0.6 | 900 | |||
Remploy | Contract-based intangible assets | |||||
Preliminary Purchase Price Accounting | |||||
Intangible assets | $ 4,600 | ||||
Amortization period of intangible assets | 2 years | 2 years |
Business combinations (Detail50
Business combinations (Details 3) - Australian business AUD in Millions, $ in Millions | Jan. 31, 2014AUD | Jan. 31, 2014USD ($) |
Preliminary Purchase Price Accounting | ||
Cash consideration | AUD 3.1 | $ 2.7 |
Deferred revenue | 0.5 | |
Customer relationships | ||
Preliminary Purchase Price Accounting | ||
Intangible assets | $ 3.2 | |
Amortization period of intangible assets | 4 years | 4 years |
Business combinations (Detail51
Business combinations (Details 4) $ in Thousands, £ in Millions | Jul. 01, 2013GBP (£)shares | Jul. 01, 2013USD ($)shares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) |
Preliminary Purchase Price Accounting | |||||
Cash consideration, net of cash acquired | $ 289,212 | $ 2,670 | $ 68,055 | ||
Goodwill | $ 376,302 | 170,626 | 171,867 | ||
Useful life | 12 years 6 months | ||||
Health Services | |||||
Preliminary Purchase Price Accounting | |||||
Goodwill | $ 113,427 | 118,721 | 118,897 | ||
Human Services | |||||
Preliminary Purchase Price Accounting | |||||
Goodwill | $ 42,351 | $ 45,706 | $ 46,771 | ||
Technology-based intangible assets | |||||
Preliminary Purchase Price Accounting | |||||
Useful life | 2 years 6 months | ||||
HML | |||||
Business combinations | |||||
Share capital acquired (as a percent) | 100.00% | 100.00% | |||
Preliminary Purchase Price Accounting | |||||
Cash consideration, net of cash acquired | £ | £ 46.9 | ||||
Stock consideration | £ | £ 4.2 | ||||
Stock consideration (in shares) | shares | 202,972 | 202,972 | |||
Purchase consideration, net of cash acquired | £ | £ 51.1 | ||||
Fair value | $ 20,542 | ||||
Amortization period of intangible assets | 19 years 6 months | ||||
HML | Customer relationships | |||||
Preliminary Purchase Price Accounting | |||||
Useful life | 20 years | 20 years | |||
Fair value | $ 19,933 | ||||
HML | Technology-based intangible assets | |||||
Preliminary Purchase Price Accounting | |||||
Useful life | 2 years | 2 years | |||
Fair value | $ 609 | ||||
HML | Previously reported | |||||
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 | 756 | ||||
Deferred tax liability | 4,701 | ||||
Total liabilities assumed | 12,834 | ||||
Net identifiable assets acquired | 19,513 | ||||
Goodwill | 58,347 | ||||
Net assets acquired | $ 77,860 |
Business combinations (Detail52
Business combinations (Details 5) - DeltaWare $ in Thousands, CAD in Millions | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2015CAD | Feb. 10, 2010 | |
Business combinations | |||
Share capital acquired (as a percent) | 100.00% | ||
Contingent consideration payable, based upon sales of acquiree products | CAD | CAD 1 | ||
Contingent consideration | |||
Balance at the beginning of the period | $ 358 | ||
Reduction in estimate | (302) | ||
Foreign currency translation | (56) | ||
Sales targets | |||
Business combinations | |||
Contingent consideration payable, based upon sales of acquiree products | CAD | CAD 4 | ||
Sales of acquiree products | $ 0 |
Debt (Details)
Debt (Details) $ in Thousands, CAD in Millions | 12 Months Ended | ||||
Sep. 30, 2015USD ($) | Sep. 30, 2015CADitem | Sep. 30, 2015USD ($)item | Apr. 01, 2015USD ($) | Mar. 09, 2015USD ($) | |
Debt. | |||||
Interest expense | $ 1,398 | ||||
Capital leases | |||||
Capital lease obligations | $ 400 | ||||
Assets recorded under capital lease | 500 | ||||
Accumulated amortization | 200 | ||||
Future minimum lease payments | |||||
future minimum lease payments | 200 | ||||
Maximum | |||||
Debt. | |||||
Derivative liability | 100 | ||||
Maximum | Accounts payable and Accrued liabilities | |||||
Debt. | |||||
Derivative liability | $ 100 | ||||
Credit Agreement | |||||
Debt. | |||||
Maximum borrowing capacity | $ 400,000 | ||||
Amount borrowed | $ 225,000 | ||||
Number of letters of credit issued | item | 3 | 3 | |||
Accrued interest rate (as a percent) | 1.19% | 1.19% | |||
Fixed payment of principal balance | $ 53,300 | ||||
Interest Paid | $ 1,200 | ||||
Credit Agreement | U.S Dollar Borrowings | |||||
Debt. | |||||
Borrowings | 202,000 | ||||
Credit Agreement | Canadian Dollar Borrowings | |||||
Debt. | |||||
Borrowings | CAD 10.3 | 7,700 | |||
Credit Agreement | Minimum | |||||
Debt. | |||||
Leverage ratio | 2.5 | ||||
Credit Agreement | Minimum | Base Rate | |||||
Debt. | |||||
Margin (as a percent) | 0.00% | ||||
Credit Agreement | Minimum | Eurocurrency Rate | |||||
Debt. | |||||
Margin (as a percent) | 1.00% | ||||
Credit Agreement | Minimum | Index Rate | |||||
Debt. | |||||
Margin (as a percent) | 1.00% | ||||
Credit Agreement | Maximum | |||||
Debt. | |||||
Total leverage ratio | 1 | ||||
Credit Agreement | Maximum | Base Rate | |||||
Debt. | |||||
Margin (as a percent) | 0.75% | ||||
Credit Agreement | Maximum | Eurocurrency Rate | |||||
Debt. | |||||
Margin (as a percent) | 1.75% | ||||
Credit Agreement | Maximum | Index Rate | |||||
Debt. | |||||
Margin (as a percent) | 1.75% | ||||
Swingline loans | |||||
Debt. | |||||
Maximum borrowing capacity | 5,000 | ||||
Letters of credit | |||||
Debt. | |||||
Maximum borrowing capacity | $ 30,000 | ||||
Outstanding borrowings | 800 | ||||
Letters of credit | Minimum | |||||
Debt. | |||||
Leverage ratio to calculate annual commitment fee (as a percent) | 0.15% | ||||
Letters of credit | Maximum | |||||
Debt. | |||||
Leverage ratio to calculate annual commitment fee (as a percent) | 0.30% | ||||
Letters of credit (Other than Revolving Credit Agreement) | |||||
Debt. | |||||
Outstanding borrowings | $ 3,000 | ||||
Number of letters of credit issued | item | 2 | 2 | |||
Atlantic Innovation Fund of Canada | |||||
Debt. | |||||
Outstanding borrowings | CAD 1.2 | $ 900 | |||
Interest expense | $ 0 | ||||
Number of remaining quarterly installments | item | 27 | 27 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 01, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Changes in goodwill | |||
Balance at the beginning of the period | $ 170,626 | $ 171,867 | |
Foreign currency translation | (8,649) | (1,272) | |
Balance at the end of the period | 376,302 | 170,626 | |
Impairment of goodwill related to continuing operations | $ 0 | 0 | 0 |
HML | |||
Changes in goodwill | |||
Adjustment to goodwill acquired | 31 | ||
Acentia | |||
Changes in goodwill | |||
Acquisition of Acentia | 214,325 | ||
Balance at the end of the period | 214,325 | ||
Health Services | |||
Changes in goodwill | |||
Balance at the beginning of the period | 118,721 | 118,897 | |
Foreign currency translation | (5,294) | (207) | |
Balance at the end of the period | 113,427 | 118,721 | |
Health Services | HML | |||
Changes in goodwill | |||
Adjustment to goodwill acquired | 31 | ||
U.S. Federal Services | |||
Changes in goodwill | |||
Balance at the beginning of the period | 6,199 | 6,199 | |
Balance at the end of the period | 220,524 | 6,199 | |
U.S. Federal Services | Acentia | |||
Changes in goodwill | |||
Acquisition of Acentia | 214,325 | ||
Human Services | |||
Changes in goodwill | |||
Balance at the beginning of the period | 45,706 | 46,771 | |
Foreign currency translation | (3,355) | (1,065) | |
Balance at the end of the period | $ 42,351 | $ 45,706 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Components of intangible assets | |||||||||||
Cost | $ 127,678 | $ 56,072 | $ 127,678 | $ 56,072 | |||||||
Accumulated Amortization | 25,320 | 16,833 | 25,320 | 16,833 | |||||||
Intangible Assets, net | 102,358 | 39,239 | $ 102,358 | 39,239 | |||||||
Weighted average remaining life of assets not fully amortized | 12 years 6 months | ||||||||||
Amortization expense | 3,166 | $ 3,275 | $ 1,432 | $ 1,475 | 1,527 | $ 1,542 | $ 1,468 | $ 1,353 | $ 9,348 | 5,890 | $ 4,883 |
Estimated future amortization expense | |||||||||||
Year ended September 30, 2016 | 12,619 | 12,619 | |||||||||
Year ended September 30, 2017 | 11,045 | 11,045 | |||||||||
Year ended September 30, 2018 | 8,797 | 8,797 | |||||||||
Year ended September 30, 2019 | 7,943 | 7,943 | |||||||||
Year ended September 30, 2020 | 6,848 | 6,848 | |||||||||
Customer contracts and relationships | |||||||||||
Components of intangible assets | |||||||||||
Cost | 114,736 | 42,403 | 114,736 | 42,403 | |||||||
Accumulated Amortization | 15,100 | 7,821 | 15,100 | 7,821 | |||||||
Intangible Assets, net | 99,636 | 34,582 | $ 99,636 | 34,582 | |||||||
Weighted average remaining life of assets not fully amortized | 12 years 9 months 18 days | ||||||||||
Trademarks and trade names | |||||||||||
Components of intangible assets | |||||||||||
Cost | 4,277 | 4,374 | $ 4,277 | 4,374 | |||||||
Accumulated Amortization | 2,866 | 2,102 | 2,866 | 2,102 | |||||||
Intangible Assets, net | 1,411 | 2,272 | $ 1,411 | 2,272 | |||||||
Weighted average remaining life of assets not fully amortized | 2 years | ||||||||||
Technology-based intangible assets | |||||||||||
Components of intangible assets | |||||||||||
Cost | 8,665 | 9,295 | $ 8,665 | 9,295 | |||||||
Accumulated Amortization | 7,354 | 6,910 | 7,354 | 6,910 | |||||||
Intangible Assets, net | 1,311 | $ 2,385 | $ 1,311 | $ 2,385 | |||||||
Weighted average remaining life of assets not fully amortized | 2 years 6 months | ||||||||||
Fully-amortized but still in use intangible assets | $ 4,000 | $ 4,000 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Property and equipment, at cost | |||
Property and equipment, gross | $ 298,600 | $ 214,508 | |
Less: Accumulated depreciation and amortization | (160,770) | (134,262) | |
Total property and equipment, net | 137,830 | 80,246 | |
Fixed asset depreciation expense | 37,000 | 32,900 | $ 26,300 |
Net assets under capital lease | 400 | ||
Expense relating to assets under capital lease | 200 | ||
Land | |||
Property and equipment, at cost | |||
Property and equipment, gross | 1,738 | 1,738 | |
Building and improvements | |||
Property and equipment, at cost | |||
Property and equipment, gross | 11,716 | 11,707 | |
Office furniture and equipment | |||
Property and equipment, at cost | |||
Property and equipment, gross | 245,577 | 177,939 | |
Leasehold improvements | |||
Property and equipment, at cost | |||
Property and equipment, gross | $ 39,569 | $ 23,124 |
Capitalized software (Details)
Capitalized software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Capitalized software | |||
Capitalized software | $ 73,584 | $ 72,758 | |
Less: Accumulated amortization | (41,101) | (33,024) | |
Total Software development costs, net | 32,483 | 39,734 | |
Capitalized software amortization expense | $ 9,900 | $ 9,900 | $ 4,600 |
Deferred contract costs (Detail
Deferred contract costs (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Deferred contract costs | ||
Deferred contract costs | $ 27,282 | $ 25,489 |
Less: accumulated amortization | (8,156) | (13,443) |
Total deferred contract costs, net | $ 19,126 | $ 12,046 |
Billed and unbilled receivabl59
Billed and unbilled receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Changes in the reserves against current billed accounts receivable | |||
Contractual retainage provisions | $ 12,100 | $ 8,800 | |
Accounts receivable, billed and unbilled | |||
Changes in the reserves against current billed accounts receivable | |||
Balance at beginning of year | 3,138 | 3,828 | $ 3,975 |
Additions to reserve | 2,690 | 1,767 | 2,334 |
Deductions | (2,443) | (2,457) | (2,481) |
Balance at end of year | $ 3,385 | $ 3,138 | $ 3,828 |
Commitments and contingencies60
Commitments and contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2012 | |
Performance bonds | ||||||||||||
Performance bond commitments | $ 27,300 | $ 27,300 | ||||||||||
Operating Lease expense | 67,100 | $ 61,800 | $ 49,000 | |||||||||
Operating sublease income | 500 | |||||||||||
Minimum future lease commitments under leases | ||||||||||||
2,016 | 70,892 | 70,892 | ||||||||||
2,017 | 56,876 | 56,876 | ||||||||||
2,018 | 40,892 | 40,892 | ||||||||||
2,019 | 29,693 | 29,693 | ||||||||||
2,020 | 18,505 | 18,505 | ||||||||||
Thereafter | 4,919 | 4,919 | ||||||||||
Total minimum lease payments | 221,777 | 221,777 | ||||||||||
Deferred revenue recorded | 52,954 | $ 32,257 | 52,954 | 32,257 | ||||||||
Additional revenue recognized from significant contract | 578,683 | $ 572,301 | $ 481,794 | $ 467,043 | 435,406 | $ 419,899 | $ 439,015 | $ 406,592 | 2,099,821 | 1,700,912 | 1,331,279 | |
Additional cost recognized for significant contract | 1,587,104 | 1,248,789 | 945,246 | |||||||||
Operating profit | 61,527 | $ 71,067 | $ 62,007 | $ 65,231 | $ 51,808 | $ 55,223 | $ 64,980 | $ 53,297 | $ 259,832 | $ 225,308 | 185,155 | |
Percentage of employees covered by collective bargaining agreements | 18.00% | |||||||||||
Sublease income | 1,200 | $ 1,200 | ||||||||||
PSI | Loss contract | ||||||||||||
Minimum future lease commitments under leases | ||||||||||||
Deferred revenue recorded | $ 15,100 | |||||||||||
Additional revenue recognized from significant contract | 16,000 | |||||||||||
Additional cost recognized for significant contract | 5,100 | |||||||||||
Operating profit | $ 10,900 | |||||||||||
Office space | ||||||||||||
Minimum future lease commitments under leases | ||||||||||||
2,016 | 66,172 | 66,172 | ||||||||||
2,017 | 52,745 | 52,745 | ||||||||||
2,018 | 37,475 | 37,475 | ||||||||||
2,019 | 27,004 | 27,004 | ||||||||||
2,020 | 16,971 | 16,971 | ||||||||||
Thereafter | 4,919 | 4,919 | ||||||||||
Total minimum lease payments | 205,286 | 205,286 | ||||||||||
Equipment | ||||||||||||
Minimum future lease commitments under leases | ||||||||||||
2,016 | 4,720 | 4,720 | ||||||||||
2,017 | 4,131 | 4,131 | ||||||||||
2,018 | 3,417 | 3,417 | ||||||||||
2,019 | 2,689 | 2,689 | ||||||||||
2,020 | 1,534 | 1,534 | ||||||||||
Total minimum lease payments | $ 16,491 | $ 16,491 |
Employee benefit plans and de61
Employee benefit plans and deferred compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Deferred compensation plan | |||
Employer contribution to 401(k) plans | $ 4.7 | $ 4.3 | $ 3.8 |
Percentage of liabilities that can be met plan assets | 90.00% | ||
Investments in mutual funds within the rabbi trust | $ 8.7 |
Equity (Details)
Equity (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stock-based compensation | |||
Shares available for grants | 2,100,000 | ||
Information pertaining to stock options vested and exercised | |||
Total income tax benefit recognized | $ 7,100,000 | $ 7,000,000 | $ 5,200,000 |
Cash paid to satisfy employees personal tax liability | 12,451,000 | 14,681,000 | 8,868,000 |
Unvested restricted stock units | |||
Stock-based compensation | |||
Compensation expense recognized | $ 17,200,000 | $ 17,300,000 | $ 14,600,000 |
Summary of RSU activity | |||
Non-vested shares outstanding at the beginning of the period | 1,884,901 | ||
Granted (in shares) | 382,727 | ||
Vested (in shares) | (1,376,096) | ||
Forfeited (in shares) | (29,992) | ||
Non-vested shares outstanding at the end of the period | 861,540 | 1,884,901 | |
Deferred vested award | 800,000 | ||
Weighted-Average Grant-Date Fair value | |||
Non-vested shares outstanding at the beginning of the period (in dollars per share) | $ 24.32 | ||
Granted (in dollars per share) | 50.82 | $ 46.49 | $ 30.66 |
Vested (in dollars per share) | 20.05 | ||
Forfeited (in dollars per share) | 37.15 | ||
Non-vested shares outstanding at the end of the period (in dollars per share) | $ 42.48 | $ 24.32 | |
Total fair value | $ 68,600,000 | $ 38,700,000 | $ 40,800,000 |
Total unrecognized compensation cost related to unvested RSUs | $ 33,100,000 | ||
Unrecognized compensation cost period expected to be realized | 4 years | ||
Weighted Average Exercise Price | |||
Weighted average remaining life | 1 year 6 months | ||
RSUs awarded in 2009 and after | Minimum | |||
Stock-based compensation | |||
Award vesting period | 1 year | ||
RSUs awarded in 2009 and after | Maximum | |||
Stock-based compensation | |||
Award vesting period | 5 years | ||
Stock options | |||
Stock-based compensation | |||
Award vesting period | 4 years | ||
Compensation expense recognized | $ 0 | $ 0 | 0 |
Award expired period | 10 years | ||
Summary of stock option activity | |||
Outstanding at the beginning of the period (in shares) | 260,000 | ||
Exercised (in shares) | (100,000) | ||
Outstanding and exercisable at the end of the period (in shares) | 160,000 | 260,000 | |
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 9 | ||
Exercised (in dollars per share) | 8.68 | ||
Outstanding and exercisable at the end of the period (in dollars per share) | $ 9.18 | $ 9 | |
Intrinsic value of outstanding and exercisable stock options at the end of the period | $ 8,100,000 | ||
Weighted average remaining life | 1 year 6 months | ||
Information pertaining to stock options vested and exercised | |||
Aggregate intrinsic value of all stock options exercised | $ 5,536,000 | $ 5,698,000 | 7,081,000 |
Net cash proceeds from exercise of stock options | $ 868,000 | $ 1,362,000 | $ 2,168,000 |
Stock awards utilized to satisfy employees' personal tax requirements (in shares) | 195,000 | ||
Cash paid to satisfy employees personal tax liability | $ 11,600,000 |
Equity (Details 2)
Equity (Details 2) - USD ($) $ in Thousands, shares in Millions | 2 Months Ended | 12 Months Ended | |||
Nov. 16, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Aug. 31, 2015 | |
Equity | |||||
Stock repurchase programs, authorized amount | $ 200,000 | ||||
Common shares repurchased | 0.3 | 1.6 | 2.7 | 1 | |
Common shares repurchased, cost | $ 14,400 | $ 82,787 | $ 113,135 | $ 32,525 | |
Amount remaining available for future stock repurchases | $ 168,600 |
Income taxes (Details)
Income taxes (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income before income taxes: | |||
United States | $ 232,359,000 | $ 180,820,000 | $ 139,716,000 |
Foreign | 27,460,000 | 46,549,000 | 49,306,000 |
Income before income taxes | 259,819,000 | 227,369,000 | 189,022,000 |
Current provision: | |||
Federal | 74,050,000 | 55,656,000 | 43,199,000 |
State and local | 15,332,000 | 12,003,000 | 11,257,000 |
Foreign | 9,581,000 | 11,416,000 | 14,821,000 |
Total current provision | 98,963,000 | 79,075,000 | 69,277,000 |
Deferred tax expense (benefit): | |||
Federal | 2,233,000 | 1,750,000 | 2,741,000 |
State and local | 403,000 | 181,000 | 851,000 |
Foreign | (1,829,000) | 967,000 | (1,196,000) |
Total deferred tax expense (benefit) | 807,000 | 2,898,000 | 2,396,000 |
Provision for income taxes | 99,770,000 | 81,973,000 | 71,673,000 |
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% | 90,937,000 | 79,579,000 | 66,158,000 |
State income taxes, net of federal benefit | 9,847,000 | 7,920,000 | 8,151,000 |
Foreign taxation | (2,208,000) | (3,909,000) | (3,715,000) |
Permanent items | 1,602,000 | 1,286,000 | 708,000 |
Tax credits | (961,000) | (1,623,000) | (217,000) |
Valuation allowance on net operating loss carryforwards | (962,000) | ||
Other | 553,000 | (318,000) | 588,000 |
Provision for income taxes | $ 99,770,000 | $ 81,973,000 | $ 71,673,000 |
Statutory income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
Deferred tax assets-current: | |||
Deferred revenue | $ 12,320,000 | $ 19,815,000 | |
Costs deductible in future periods | 15,467,000 | 14,944,000 | |
Net operating loss carryforwards | 777,000 | 207,000 | |
Other | 26,000 | ||
Total deferred tax assets-current | 28,590,000 | 34,966,000 | |
Deferred tax liabilities-current: | |||
Accounts receivable-unbilled | 9,598,000 | 6,858,000 | |
Net deferred tax asset-current | 18,992,000 | 28,108,000 | |
Deferred tax assets-non-current: | |||
Net operating loss carryforwards | 139,000 | 2,355,000 | |
Net operating loss carryforwards net of valuation reserve | 139,000 | 2,355,000 | |
Deferred revenue | 9,127,000 | 7,089,000 | |
Stock compensation | 4,600,000 | 4,100,000 | |
Costs deductible in future periods | 10,429,000 | 1,662,000 | |
Other | 441,000 | 7,828,000 | |
Total deferred tax assets-non-current | 24,736,000 | 23,034,000 | |
Deferred tax liabilities-non-current | |||
Amortization of goodwill and intangible assets | 22,061,000 | 20,261,000 | |
Capitalized software | 9,781,000 | 12,057,000 | |
Property and equipment | 6,353,000 | 10,045,000 | |
Deferred contract costs | 1,762,000 | ||
Employee benefit costs | 759,000 | ||
Other | 941,000 | 292,000 | |
Total deferred tax liability-non-current | 39,895,000 | 44,417,000 | |
Net deferred tax liability-non-current | 15,159,000 | $ 21,383,000 | |
Cumulative earnings from foreign subsidiaries | 190,000,000 | ||
Deferred taxes on cumulative earnings | $ 0 |
Income taxes (Details 2)
Income taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net operating loss carryforwards | |||
Income taxes paid | $ 81,300 | $ 79,400 | $ 58,200 |
Unrecognized tax benefits | |||
Net unrecognized tax benefits | 1,000 | 1,100 | |
Unrecognized tax benefits that, if recognized, would affect the annual effective income tax rate | 1,000 | ||
Interest and penalties included in net liability balance | 500 | 500 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | |||
Balance at beginning of year | 812 | 812 | 1,059 |
Lapse of statute of limitations | (200) | (230) | |
Reductions for tax positions of prior years | (83) | (17) | |
Balance at end of year | 529 | 812 | 812 |
United States. | |||
Net operating loss carryforwards | |||
Net operating loss carryforwards | 2,100 | 4,500 | |
Deferred tax asset, foreign | 700 | 2,400 | |
Valuation allowance established against the deferred tax asset | 0 | ||
Canada. | |||
Net operating loss carryforwards | |||
Net operating loss carryforwards | 400 | 800 | |
Deferred tax asset, foreign | 100 | 200 | |
Maximum | |||
Unrecognized tax benefits | |||
Interest expense recognized related to unrecognized tax benefits | $ 100 | $ 100 | $ 100 |
Quarterly information (unaudi66
Quarterly information (unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue | $ 578,683 | $ 572,301 | $ 481,794 | $ 467,043 | $ 435,406 | $ 419,899 | $ 439,015 | $ 406,592 | $ 2,099,821 | $ 1,700,912 | $ 1,331,279 |
Gross profit | 125,307 | 143,798 | 124,345 | 119,267 | 112,932 | 112,603 | 120,672 | 105,916 | 512,717 | 452,123 | 386,033 |
Amortization of intangible assets | (3,166) | (3,275) | (1,432) | (1,475) | (1,527) | (1,542) | (1,468) | (1,353) | (9,348) | (5,890) | (4,883) |
Selling, general and administrative expenses | (238,792) | (220,925) | (193,827) | ||||||||
Acquisition-related expenses | (172) | (2,459) | (1,514) | (600) | (4,745) | (2,168) | |||||
Operating income | 61,527 | 71,067 | 62,007 | 65,231 | 51,808 | 55,223 | 64,980 | 53,297 | 259,832 | 225,308 | 185,155 |
Net income | 36,412 | 42,259 | 39,028 | 42,350 | 36,152 | 34,428 | 41,461 | 33,355 | 160,049 | 145,396 | 117,349 |
Net income attributable to MAXIMUS | $ 35,437 | $ 41,666 | $ 38,808 | $ 41,861 | $ 36,236 | $ 34,138 | $ 41,207 | $ 33,859 | $ 157,772 | $ 145,440 | $ 116,731 |
Diluted earnings per share attributable to Maximus (in dollars per share) | $ 0.53 | $ 0.62 | $ 0.58 | $ 0.63 | $ 0.53 | $ 0.49 | $ 0.59 | $ 0.49 | $ 2.35 | $ 2.11 | $ 1.67 |
Other/Corporate | |||||||||||
Selling, general and administrative expenses | $ 102 | $ (8) | $ (95) | $ (5) | $ 1 | $ (35) | $ (563) | $ (17) | |||
Health Services | Operating segments | |||||||||||
Revenue | 296,201 | 298,549 | 270,918 | 243,570 | 230,450 | 228,703 | 230,953 | 216,544 | $ 1,109,238 | $ 906,650 | $ 691,565 |
Gross profit | 54,575 | 69,813 | 69,873 | 59,847 | 59,018 | 54,900 | 51,616 | 48,194 | 254,108 | 213,728 | 172,336 |
Selling, general and administrative expenses | (30,507) | (44,470) | (41,476) | (37,840) | (31,150) | (29,153) | (29,709) | (25,544) | (99,815) | (98,172) | (83,131) |
Operating income | 154,293 | 115,556 | 89,205 | ||||||||
U.S. Federal Services | Operating segments | |||||||||||
Revenue | 154,279 | 141,011 | 99,465 | 107,729 | 90,605 | 76,550 | 92,645 | 82,040 | 502,484 | 341,840 | 167,258 |
Gross profit | 36,284 | 34,780 | 22,014 | 25,568 | 24,597 | 24,632 | 33,252 | 28,312 | 118,646 | 110,793 | 73,694 |
Selling, general and administrative expenses | (20,903) | (15,536) | (9,637) | (13,318) | (12,239) | (14,046) | (20,026) | (16,787) | (59,252) | (47,695) | (31,128) |
Operating income | 59,394 | 63,098 | 42,566 | ||||||||
Human Services | Operating segments | |||||||||||
Revenue | 128,203 | 132,741 | 111,411 | 115,744 | 114,351 | 114,646 | 115,417 | 108,008 | 488,099 | 452,422 | 472,456 |
Gross profit | 34,448 | 39,205 | 32,458 | 33,852 | 29,317 | 33,071 | 35,804 | 29,410 | 139,963 | 127,602 | 140,003 |
Selling, general and administrative expenses | $ (13,353) | $ (16,803) | $ (13,935) | $ (16,153) | $ (9,945) | $ (13,601) | $ (17,276) | $ (12,336) | (79,719) | (74,444) | (78,970) |
Operating income | $ 60,244 | $ 53,158 | $ 61,033 |
Subsequent events (Details)
Subsequent events (Details) - Subsequent events $ / shares in Units, $ in Millions | Oct. 02, 2015USD ($)$ / shares |
Subsequent events | |
Cash dividend declared (in dollars per share) | $ 0.045 |
Dividend payable | $ | $ 2.9 |