Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | MAXIMUS INC | |
Entity Central Index Key | 1032220 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 65,891,694 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Revenue | $481,794 | $439,015 | $948,837 | $845,607 |
Cost of revenue | 357,449 | 318,343 | 705,225 | 619,019 |
Gross profit | 124,345 | 120,672 | 243,612 | 226,588 |
Selling, general and administrative expenses | 59,392 | 53,624 | 111,353 | 104,889 |
Amortization of intangible assets | 1,432 | 1,468 | 2,907 | 2,823 |
Acquisition-related expenses | 1,514 | 2,114 | ||
Legal and settlement expense | 600 | 600 | ||
Operating income | 62,007 | 64,980 | 127,238 | 118,276 |
Interest and other income, net | 219 | 476 | 1,120 | 808 |
Income before income taxes | 62,226 | 65,456 | 128,358 | 119,084 |
Provision for income taxes | 23,198 | 23,995 | 46,980 | 44,268 |
Net Income | 39,028 | 41,461 | 81,378 | 74,816 |
(Income)/loss attributable to noncontrolling interests | -220 | -254 | -709 | 250 |
Net income attributable to MAXIMUS | $38,808 | $41,207 | $80,669 | $75,066 |
Basic earnings per share attributable to MAXIMUS (in dollars per share) | $0.59 | $0.61 | $1.22 | $1.10 |
Diluted earnings per share attributable to MAXIMUS (in dollars per share) | $0.58 | $0.59 | $1.20 | $1.08 |
Dividends per share (in dollars per share) | $0.05 | $0.05 | $0.09 | $0.09 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 65,862 | 67,884 | 65,899 | 68,143 |
Diluted (in shares) | 66,987 | 69,307 | 66,947 | 69,538 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $39,028 | $41,461 | $81,378 | $74,816 |
Foreign currency translation adjustments | -10,553 | 1,638 | -21,033 | -1,447 |
Comprehensive income | 28,475 | 43,099 | 60,345 | 73,369 |
Comprehensive (income)/loss attributable to noncontrolling interests | -220 | -254 | -709 | 250 |
Comprehensive income attributable to MAXIMUS | $28,255 | $42,845 | $59,636 | $73,619 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $114,535 | $158,112 |
Accounts receivable - billed and billable, net net of reserves of $4,004 and $3,138 | 339,527 | 263,011 |
Accounts receivable - unbilled | 28,845 | 26,556 |
Deferred income taxes | 32,572 | 28,108 |
Prepaid expenses and other current assets | 54,530 | 56,673 |
Total current assets | 570,009 | 532,460 |
Property and equipment, net | 103,234 | 80,246 |
Capitalized software, net | 35,311 | 39,734 |
Goodwill | 162,214 | 170,626 |
Intangible assets, net | 34,031 | 39,239 |
Deferred contract costs, net | 19,005 | 12,046 |
Deferred compensation plan assets | 21,003 | 17,126 |
Other assets, net | 10,154 | 9,519 |
Total assets | 954,961 | 900,996 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 126,122 | 103,181 |
Accrued compensation and benefits | 67,765 | 94,137 |
Deferred revenue | 55,096 | 55,878 |
Income taxes payable | 16,887 | 4,693 |
Other liabilities | 6,951 | 7,432 |
Total current liabilities | 272,821 | 265,321 |
Deferred revenue, less current portion | 50,682 | 32,257 |
Deferred income taxes | 15,930 | 21,383 |
Deferred compensation plan liabilities, less current portion | 20,973 | 18,768 |
Other liabilities | 6,326 | 7,082 |
Total liabilities | 366,732 | 344,811 |
Shareholders' equity: | ||
Common stock, no par value; 100,000 shares authorized; 65,871 and 66,613 shares issued and outstanding at March 31, 2015 and September 30, 2014, at stated amount, respectively | 438,373 | 429,857 |
Accumulated other comprehensive income/(loss) | -20,803 | 230 |
Retained earnings | 169,802 | 125,875 |
Total MAXIMUS shareholders' equity | 587,372 | 555,962 |
Noncontrolling interests | 857 | 223 |
Total equity | 588,229 | 556,185 |
Total liabilities and equity | $954,961 | $900,996 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable - billed and billable, reserves (in dollars) | $4,004 | $3,138 |
Common stock, no par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 65,871 | 66,613 |
Common stock, shares outstanding | 65,871 | 66,613 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $81,378 | $74,816 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property, equipment and capitalized software | 23,706 | 20,936 |
Amortization of intangible assets | 2,907 | 2,823 |
Deferred income taxes | -10,134 | -1,387 |
Stock compensation expense | 8,436 | 8,561 |
Changes in assets and liabilities: | ||
Accounts receivable-billed and billable | -80,883 | -37,516 |
Accounts receivable - unbilled | -2,311 | -50 |
Prepaid expenses and other current assets | -6,043 | 2,539 |
Deferred contract costs | -7,105 | 1,979 |
Accounts payable and accrued liabilities | 27,274 | 3,627 |
Accrued compensation and benefits | -12,263 | -7,450 |
Deferred revenue | 21,858 | -6,211 |
Income taxes | 19,583 | 10,153 |
Other assets and liabilities | -4,337 | 3,640 |
Cash provided by operating activities | 62,066 | 76,460 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -44,226 | -9,516 |
Capitalized software costs | -3,247 | -7,317 |
Acquisition of business, net of cash acquired | -2,670 | |
Proceeds from note receivable | 282 | 154 |
Cash used in investing activities | -47,191 | -19,349 |
Cash flows from financing activities: | ||
Cash dividends paid | -5,928 | -6,138 |
Repurchases of common stock | -32,616 | -34,696 |
Tax withholding related to RSU vesting | -12,453 | -12,905 |
Expansion of credit facility | -1,444 | |
Borrowings under credit facility | 15,000 | |
Repayment of credit facility and long-term debt | -74 | -15,082 |
Tax benefit due to option exercises and restricted stock units vesting | 2,925 | |
Stock option exercises | 518 | |
Cash used in financing activities | -52,515 | -50,378 |
Effect of exchange rate changes on cash and cash equivalents | -5,937 | -1,027 |
Net decrease in cash and cash equivalents | -43,577 | 5,706 |
Cash and cash equivalents, beginning of period | 158,112 | 125,617 |
Cash and cash equivalents, end of period | $114,535 | $131,323 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | Noncontrolling Interest | Total |
In Thousands, unless otherwise specified | |||||
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 | 75,066 | -250 | 74,816 | ||
Foreign currency translation | -1,447 | -1,447 | |||
Cash dividends | -6,138 | -6,138 | |||
Dividends on RSUs | 250 | -250 | |||
Repurchases of common stock | -35,480 | -35,480 | |||
Repurchases of common stock (in shares) | -807 | -800 | |||
Stock compensation expense | 8,561 | 8,561 | |||
Stock compensation tax benefit | 2,925 | 2,925 | |||
Tax withholding related to RSU vesting | -1,877 | -1,877 | |||
Stock options exercised and RSUs vesting | 518 | 518 | |||
Stock options exercised and RSUs vesting (in shares) | 171 | ||||
Balance at Mar. 31, 2014 | 425,648 | 6,540 | 139,448 | 17 | 571,653 |
Balance (in shares) at Mar. 31, 2014 | 67,889 | ||||
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 | 80,669 | 709 | 81,378 | ||
Foreign currency translation | -21,033 | -21,033 | |||
Cash dividends | -5,928 | -5,928 | |||
Dividends on RSUs | 196 | -196 | |||
Dividends to noncontrolling interests | -75 | -75 | |||
Repurchases of common stock | -30,618 | -30,618 | |||
Repurchases of common stock (in shares) | -753 | -800 | |||
Stock compensation expense | 8,436 | 8,436 | |||
Tax withholding related to RSU vesting | -116 | -116 | |||
RSUs vested (in shares) | 11 | ||||
Balance at Mar. 31, 2015 | $438,373 | ($20,803) | $169,802 | $857 | $588,229 |
Balance (in shares) at Mar. 31, 2015 | 65,871 | 65,871 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 6 Months Ended |
Mar. 31, 2015 | |
Organization and Basis of Presentation | |
Organization and Basis of Presentation | |
1. Organization and Basis of Presentation | |
General | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for the three and six months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2014 has been derived from the audited financial statements at that date but does not include all of the information and notes required by generally accepted accounting principles for complete financial statements. Certain reclassifications have been made from prior year to conform with current presentation. | |
The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenue and expenses. On an ongoing basis, we evaluate our estimates including those related to revenue recognition and cost estimation on certain contracts, the realizability of goodwill, and amounts related to income taxes, certain accrued liabilities and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. | |
These financial statements should be read in conjunction with the consolidated audited financial statements and the notes thereto at September 30, 2014 and 2013 and for each of the three years ended September 30, 2014, included in our Annual Report on Form 10-K for the year ended September 30, 2014 which was filed with the Securities and Exchange Commission on November 17, 2014. | |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||
2. Segment Information | ||||||||||||||||||||||
The table below provides certain financial information for each of our business segments. The presentation of segments has been updated from our presentation at prior year to show amortization of intangible assets separately and to reflect the transfer of a small business division from the Health Services Segment to the Human Services Segment. | ||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||
(Amounts in thousands) | 2015 | % (1) | 2014 | % (1) | 2015 | % (1) | 2014 | % (1) | ||||||||||||||
Revenue: | ||||||||||||||||||||||
Health Services | $ | 370,383 | 100 | % | $ | 323,598 | 100 | % | $ | 721,682 | 100 | % | $ | 622,182 | 100 | % | ||||||
Human Services | 111,411 | 100 | % | 115,417 | 100 | % | 227,155 | 100 | % | 223,425 | 100 | % | ||||||||||
Total | 481,794 | 100 | % | 439,015 | 100 | % | 948,837 | 100 | % | 845,607 | 100 | % | ||||||||||
Gross Profit: | ||||||||||||||||||||||
Health Services | 91,887 | 24.8 | % | 84,868 | 26.2 | % | 177,302 | 24.6 | % | 161,374 | 25.9 | % | ||||||||||
Human Services | 32,458 | 29.1 | % | 35,804 | 31 | % | 66,310 | 29.2 | % | 65,214 | 29.2 | % | ||||||||||
Total | 124,345 | 25.8 | % | 120,672 | 27.5 | % | 243,612 | 25.7 | % | 226,588 | 26.8 | % | ||||||||||
Selling, general, and administrative expense: | ||||||||||||||||||||||
Health Services | 40,774 | 11 | % | 35,133 | 10.9 | % | 75,031 | 10.4 | % | 69,308 | 11.1 | % | ||||||||||
Human Services | 18,523 | 16.6 | % | 18,528 | 16.1 | % | 36,222 | 15.9 | % | 35,602 | 15.9 | % | ||||||||||
Other | 95 | NM | (37 | ) | NM | 100 | NM | (21 | ) | NM | ||||||||||||
Total | 59,392 | 12.3 | % | 53,624 | 12.2 | % | 111,353 | 11.7 | % | 104,889 | 12.4 | % | ||||||||||
Operating income: | ||||||||||||||||||||||
Health Services | 51,113 | 13.8 | % | 49,735 | 15.4 | % | 102,271 | 14.2 | % | 92,066 | 14.8 | % | ||||||||||
Human Services | 13,935 | 12.5 | % | 17,276 | 15 | % | 30,088 | 13.2 | % | 29,612 | 13.3 | % | ||||||||||
Amortization of intangible assets | (1,432 | ) | NM | (1,468 | ) | NM | (2,907 | ) | NM | (2,823 | ) | NM | ||||||||||
Acquisition-related expenses (2) | (1,514 | ) | NM | — | NM | (2,114 | ) | NM | — | NM | ||||||||||||
Legal and settlement expenses (3) | — | NM | (600 | ) | NM | — | NM | (600 | ) | NM | ||||||||||||
Other | (95 | ) | NM | 37 | NM | (100 | ) | NM | 21 | NM | ||||||||||||
Total | $ | 62,007 | 12.9 | % | $ | 64,980 | 14.8 | % | $ | 127,238 | 13.4 | % | $ | 118,276 | 14 | % | ||||||
-1 | Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” | |||||||||||||||||||||
-2 | Acquisition-related expenses are costs directly incurred from the purchases of Acentia and Remploy. | |||||||||||||||||||||
-3 | Legal and settlement expenses consist of costs related to significant legal settlements and non-routine legal matters, including future probable legal costs expected to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in their respective operating segments. | |||||||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Earnings Per Share | ||||||||||
Earnings Per Share | ||||||||||
3. Earnings Per Share | ||||||||||
The weighted average number of shares outstanding used to compute earnings per share was as follows: | ||||||||||
Three Months | Six Months | |||||||||
Ended March 31, | Ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||
Basic weighted average shares outstanding | 65,862 | 67,884 | 65,899 | 68,143 | ||||||
Effect of dilutive securities: | ||||||||||
Employee stock options and unvested restricted stock units | 1,125 | 1,423 | 1,048 | 1,395 | ||||||
Denominator for diluted earnings per share | 66,987 | 69,307 | 66,947 | 69,538 | ||||||
No shares were excluded from the computation in calculating the earnings per share for the three or six months ended March 31, 2015 or 2014. | ||||||||||
Business_combinations
Business combinations | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Business combinations | ||||||||||||||
Business combinations | ||||||||||||||
4. Business combinations | ||||||||||||||
Acentia | ||||||||||||||
On April 1, 2015 (the “acquisition date”), we acquired 100% of the ownership interests of Acentia, LLC (“Acentia”) for an estimated cash consideration of $294 million. The final cash consideration will be subject to adjustment based upon calculation of the working capital on the acquisition date, as well as certain other adjustments. | ||||||||||||||
Acentia provides system modernization, software development, program management and other information technology services and solutions to the United States 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 will be integrated into our Health Services Segment. | ||||||||||||||
As the acquisition occurred after March 31, 2015, no assets, liabilities, results of operations or cash flows related to Acentia are included in these financial statements. We are in the process of allocating the acquisition price to the fair value of the assets and liabilities of Acentia at the acquisition date. In itial estimates of this allocation are shown below but may be subject to change as we complete our assessment of the acquisition date balance sheet. | ||||||||||||||
(Amounts in thousands) | Preliminary Purchase | |||||||||||||
Price Accounting | ||||||||||||||
Estimated purchase consideration, net of cash acquired | $ | 294,005 | ||||||||||||
Billed and unbilled receivables | $ | 35,087 | ||||||||||||
Other assets | 3,635 | |||||||||||||
Property and equipment | 1,619 | |||||||||||||
Intangible assets — customer relationships | 69,900 | |||||||||||||
Total identifiable assets acquired | 110,241 | |||||||||||||
Accounts payable and other liabilities | 30,676 | |||||||||||||
Deferred revenue | 251 | |||||||||||||
Total liabilities assumed | 30,927 | |||||||||||||
Net identifiable assets acquired | 79,314 | |||||||||||||
Goodwill | 214,691 | |||||||||||||
Net assets acquired | $ | 294,005 | ||||||||||||
The excess of the acquisition date consideration over the estimated fair value of the net assets acquired will be 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 70% of the goodwill balance is anticipated to be deductible for tax purposes. | ||||||||||||||
The intangible assets acquired represent customer relationships. These are expected to be amortized on a straight-line basis over 14 years. | ||||||||||||||
The following table presents certain results for the Company for the three and six months ended March 31, 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 the results of the Company if the acquisition had taken place on that date. The pro forma results presented below include amortization charges for acquired intangible assets, adjustments to interest expense incurred and exclude related acquisition expenses. | ||||||||||||||
Unaudited pro forma results | ||||||||||||||
Three Months | Six Months | |||||||||||||
Ended March 31, | Ended March 31, | |||||||||||||
(Amounts in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Revenue | $ | 533,408 | $ | 491,720 | $ | 1,052,390 | $ | 951,669 | ||||||
Net income | 40,984 | 43,783 | 86,668 | 79,314 | ||||||||||
Basic earnings per share attributable to MAXIMUS | 0.62 | 0.64 | 1.30 | 1.17 | ||||||||||
Diluted earnings per share attributable to MAXIMUS | 0.61 | 0.63 | 1.28 | 1.14 | ||||||||||
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 stipulates that the net assets of Remploy are to be zero on the Remploy acquisition date as calculated using United Kingdom accounting principles. | ||||||||||||||
Remploy provides services to the United Kingdom government, particularly in supporting employment opportunities for the disabled. We acquired Remploy to complement our welfare-to-work services in the United Kingdom. The acquired assets and liabilities will be integrated into our Human Services Segment. | ||||||||||||||
No financial results related to Remploy are included in our statement of operations for the three and six months ended March 31, 2015. The results of Remploy for periods prior to the Remploy acquisition date would not have had a significant effect on our financial results. | ||||||||||||||
Goodwill_and_Intangible_assets
Goodwill and Intangible assets | 6 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible assets | ||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||
5. Goodwill and Intangible Assets | ||||||||||||||||||||
The changes in goodwill for the six months ended March 31, 2015 are as follows: | ||||||||||||||||||||
(Amounts in thousands) | Health Services | Human Services | Total | |||||||||||||||||
Balance as of September 30, 2014 | $ | 124,920 | $ | 45,706 | $ | 170,626 | ||||||||||||||
Foreign currency translation | (6,210 | ) | (2,202 | ) | (8,412 | ) | ||||||||||||||
Balance as of March 31, 2015 | $ | 118,710 | $ | 43,504 | $ | 162,214 | ||||||||||||||
The following table sets forth the components of intangible assets: | ||||||||||||||||||||
As of March 31, 2015 | As of September 30, 2014 | |||||||||||||||||||
(Amounts in thousands) | Cost | Accumulated | Intangible | Cost | Accumulated | Intangible | ||||||||||||||
Amortization | Assets, net | Amortization | Assets, net | |||||||||||||||||
Customer contracts and relationships | $ | 40,027 | $ | 9,545 | $ | 30,482 | $ | 42,403 | $ | 7,821 | $ | 34,582 | ||||||||
Technology based intangible assets | 8,828 | 7,095 | 1,733 | 9,295 | 6,910 | 2,385 | ||||||||||||||
Trademarks and trade names | 4,306 | 2,490 | 1,816 | 4,374 | 2,102 | 2,272 | ||||||||||||||
Total | $ | 53,161 | $ | 19,130 | $ | 34,031 | $ | 56,072 | $ | 16,833 | $ | 39,239 | ||||||||
Our intangible assets at March 31, 2015 had a weighted average remaining life of 11.5 years, comprising 12.5 years for customer contracts and relationships, 2.9 years for technology-based intangible assets and 2.5 years for the trademarks and trade names. Amortization expense for the six months ended March 31, 2015 and 2014 was $2.9 million and $2.8 million, respectively. Estimated future amortization expense excluding the effects of the Acentia and Remploy acquisitions is as follows (in thousands): | ||||||||||||||||||||
Six months ended September 30, 2015 | $ | 2,758 | ||||||||||||||||||
Year ended September 30, 2016 | 5,354 | |||||||||||||||||||
Year ended September 30, 2017 | 4,955 | |||||||||||||||||||
Year ended September 30, 2018 | 3,820 | |||||||||||||||||||
Year ended September 30, 2019 | 2,936 | |||||||||||||||||||
Year ended September 30, 2020 | 1,832 | |||||||||||||||||||
Amortization expenses related to the Acentia and Remploy acquisitions are not included above. The additional expense is anticipated to be approximately $6 million per year. | ||||||||||||||||||||
Credit_facilities
Credit facilities | 6 Months Ended |
Mar. 31, 2015 | |
Credit facilities | |
Credit Facilities | |
6. 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. | |
We had no borrowings under the Credit Agreement at March 31, 2015. | |
At March 31, 2015, our only indebtedness under the Credit Agreement was three letters of credit totaling $4.7 million. Each of these letters of credit may be called by customers in the event that the Company defaults under the terms of a contract, the probability of which we believe is remote. In addition, two letters of credit totaling $3.0 million, secured with restricted cash balances, are held with another financial institution to cover similar obligations. | |
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 March 31, 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 March 31, 2015, our total leverage ratio was negligible. | |
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. | |
On April 1, 2015, in connection with the Acentia acquisition, we borrowed $225 million under our Credit Agreement and issued an additional letter of credit for $0.6 million. We currently estimate that our leverage ratio will be below 1.0:1.0 after this borrowing. | |
Supplemental_disclosures
Supplemental disclosures | 6 Months Ended |
Mar. 31, 2015 | |
Supplemental disclosures | |
Supplemental disclosures | |
7. Supplemental disclosures | |
During the six months ended March 31, 2015 and 2014, we made income tax payments of $37.6 million and $35.5 million, respectively. | |
At March 31, 2015, we held cash and cash equivalents of $114.5 million. Approximately 33% of these funds are denominated and held in jurisdictions outside the United States and we have no requirement or intent at this time to transfer the funds to the United States. Declines in the value of foreign currencies with respect to the United States Dollar, notably the Australian Dollar and British Pound, resulted in a decline in net assets of $21.0 million in the six months ended March 31, 2015, including a $5.9 million decline in our cash and cash equivalents balance and a $8.4 million decline in our goodwill balance. These declines were recorded as losses in our statement of comprehensive income. | |
Our deferred compensation plan assets include $9.6 million invested in mutual funds which have quoted prices in active markets. These assets are recorded at fair value with changes in fair value being recorded in the statement of operations. 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 are shown at values equivalent to fair value due to the short-term nature of these items. Our accounts receivable balance includes both amounts invoiced and those where amounts are ready to be invoiced and the funds are collectable within standard invoice terms. | |
Stock_Repurchase_Programs
Stock Repurchase Programs | 6 Months Ended |
Mar. 31, 2015 | |
Stock Repurchase Programs | |
Stock Repurchase Programs | |
8. Stock Repurchase Programs | |
Under resolutions adopted in November 2011 and June 2014, our Board of Directors authorized the repurchase, at management’s discretion, of up to an aggregate of $275.0 million of our common stock. The resolution also authorized the use of option exercise proceeds for the repurchase of our common stock. During the six months ended March 31, 2015 and 2014, we repurchased 0.8 million and 0.8 million common shares at a cost of $30.6 million and $35.5 million, respectively. The amount available for future repurchases at March 31, 2015 was $104.6 million. | |
Revenue_recognition
Revenue recognition | 6 Months Ended |
Mar. 31, 2015 | |
Revenue recognition | |
Revenue recognition | |
9. Revenue recognition | |
In May 2014, the Financial Accounting Standards Board (the “FASB”) 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. In April 2015, the FASB proposed a one-year delay in the effective date of the standard. If this proposal is ratified, we would 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 likely effects on our business. | |
Dividend
Dividend | 6 Months Ended |
Mar. 31, 2015 | |
Dividend | |
Dividend | |
10. Dividend | |
On April 3, 2015, our Board of Directors declared a quarterly cash dividend of $0.045 for each share of our common stock outstanding. The dividend is payable on May 29, 2015 to shareholders of record on May 15, 2015. | |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||
Schedule of financial information for each of the Company's business segments | ||||||||||||||||||||||
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||
(Amounts in thousands) | 2015 | % (1) | 2014 | % (1) | 2015 | % (1) | 2014 | % (1) | ||||||||||||||
Revenue: | ||||||||||||||||||||||
Health Services | $ | 370,383 | 100 | % | $ | 323,598 | 100 | % | $ | 721,682 | 100 | % | $ | 622,182 | 100 | % | ||||||
Human Services | 111,411 | 100 | % | 115,417 | 100 | % | 227,155 | 100 | % | 223,425 | 100 | % | ||||||||||
Total | 481,794 | 100 | % | 439,015 | 100 | % | 948,837 | 100 | % | 845,607 | 100 | % | ||||||||||
Gross Profit: | ||||||||||||||||||||||
Health Services | 91,887 | 24.8 | % | 84,868 | 26.2 | % | 177,302 | 24.6 | % | 161,374 | 25.9 | % | ||||||||||
Human Services | 32,458 | 29.1 | % | 35,804 | 31 | % | 66,310 | 29.2 | % | 65,214 | 29.2 | % | ||||||||||
Total | 124,345 | 25.8 | % | 120,672 | 27.5 | % | 243,612 | 25.7 | % | 226,588 | 26.8 | % | ||||||||||
Selling, general, and administrative expense: | ||||||||||||||||||||||
Health Services | 40,774 | 11 | % | 35,133 | 10.9 | % | 75,031 | 10.4 | % | 69,308 | 11.1 | % | ||||||||||
Human Services | 18,523 | 16.6 | % | 18,528 | 16.1 | % | 36,222 | 15.9 | % | 35,602 | 15.9 | % | ||||||||||
Other | 95 | NM | (37 | ) | NM | 100 | NM | (21 | ) | NM | ||||||||||||
Total | 59,392 | 12.3 | % | 53,624 | 12.2 | % | 111,353 | 11.7 | % | 104,889 | 12.4 | % | ||||||||||
Operating income: | ||||||||||||||||||||||
Health Services | 51,113 | 13.8 | % | 49,735 | 15.4 | % | 102,271 | 14.2 | % | 92,066 | 14.8 | % | ||||||||||
Human Services | 13,935 | 12.5 | % | 17,276 | 15 | % | 30,088 | 13.2 | % | 29,612 | 13.3 | % | ||||||||||
Amortization of intangible assets | (1,432 | ) | NM | (1,468 | ) | NM | (2,907 | ) | NM | (2,823 | ) | NM | ||||||||||
Acquisition-related expenses (2) | (1,514 | ) | NM | — | NM | (2,114 | ) | NM | — | NM | ||||||||||||
Legal and settlement expenses (3) | — | NM | (600 | ) | NM | — | NM | (600 | ) | NM | ||||||||||||
Other | (95 | ) | NM | 37 | NM | (100 | ) | NM | 21 | NM | ||||||||||||
Total | $ | 62,007 | 12.9 | % | $ | 64,980 | 14.8 | % | $ | 127,238 | 13.4 | % | $ | 118,276 | 14 | % | ||||||
-1 | Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” | |||||||||||||||||||||
-2 | Acquisition-related expenses are costs directly incurred from the purchases of Acentia and Remploy. | |||||||||||||||||||||
-3 | Legal and settlement expenses consist of costs related to significant legal settlements and non-routine legal matters, including future probable legal costs expected to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in their respective operating segments. | |||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Earnings Per Share | ||||||||||
Schedule of the components of basic and diluted earnings per share | ||||||||||
Three Months | Six Months | |||||||||
Ended March 31, | Ended March 31, | |||||||||
(Amounts in thousands) | 2015 | 2014 | 2015 | 2014 | ||||||
Basic weighted average shares outstanding | 65,862 | 67,884 | 65,899 | 68,143 | ||||||
Effect of dilutive securities: | ||||||||||
Employee stock options and unvested restricted stock units | 1,125 | 1,423 | 1,048 | 1,395 | ||||||
Denominator for diluted earnings per share | 66,987 | 69,307 | 66,947 | 69,538 | ||||||
Business_combinations_Tables
Business combinations (Tables) | 6 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Business combinations | ||||||||||||||
Schedule of unaudited pro forma information | ||||||||||||||
Unaudited pro forma results | ||||||||||||||
Three Months | Six Months | |||||||||||||
Ended March 31, | Ended March 31, | |||||||||||||
(Amounts in thousands, except per share amounts) | 2015 | 2014 | 2015 | 2014 | ||||||||||
Revenue | $ | 533,408 | $ | 491,720 | $ | 1,052,390 | $ | 951,669 | ||||||
Net income | 40,984 | 43,783 | 86,668 | 79,314 | ||||||||||
Basic earnings per share attributable to MAXIMUS | 0.62 | 0.64 | 1.30 | 1.17 | ||||||||||
Diluted earnings per share attributable to MAXIMUS | 0.61 | 0.63 | 1.28 | 1.14 | ||||||||||
Acentia LLC | ||||||||||||||
Business combinations | ||||||||||||||
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date | ||||||||||||||
(Amounts in thousands) | Preliminary Purchase | |||||||||||||
Price Accounting | ||||||||||||||
Estimated purchase consideration, net of cash acquired | $ | 294,005 | ||||||||||||
Billed and unbilled receivables | $ | 35,087 | ||||||||||||
Other assets | 3,635 | |||||||||||||
Property and equipment | 1,619 | |||||||||||||
Intangible assets — customer relationships | 69,900 | |||||||||||||
Total identifiable assets acquired | 110,241 | |||||||||||||
Accounts payable and other liabilities | 30,676 | |||||||||||||
Deferred revenue | 251 | |||||||||||||
Total liabilities assumed | 30,927 | |||||||||||||
Net identifiable assets acquired | 79,314 | |||||||||||||
Goodwill | 214,691 | |||||||||||||
Net assets acquired | $ | 294,005 | ||||||||||||
Recovered_Sheet1
Goodwill and intangible assets (Tables) | 6 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible assets | ||||||||||||||||||||
Schedule of changes in the carrying amount of goodwill | ||||||||||||||||||||
(Amounts in thousands) | Health Services | Human Services | Total | |||||||||||||||||
Balance as of September 30, 2014 | $ | 124,920 | $ | 45,706 | $ | 170,626 | ||||||||||||||
Foreign currency translation | (6,210 | ) | (2,202 | ) | (8,412 | ) | ||||||||||||||
Balance as of March 31, 2015 | $ | 118,710 | $ | 43,504 | $ | 162,214 | ||||||||||||||
Schedule of components of intangible assets | ||||||||||||||||||||
As of March 31, 2015 | As of September 30, 2014 | |||||||||||||||||||
(Amounts in thousands) | Cost | Accumulated | Intangible | Cost | Accumulated | Intangible | ||||||||||||||
Amortization | Assets, net | Amortization | Assets, net | |||||||||||||||||
Customer contracts and relationships | $ | 40,027 | $ | 9,545 | $ | 30,482 | $ | 42,403 | $ | 7,821 | $ | 34,582 | ||||||||
Technology based intangible assets | 8,828 | 7,095 | 1,733 | 9,295 | 6,910 | 2,385 | ||||||||||||||
Trademarks and trade names | 4,306 | 2,490 | 1,816 | 4,374 | 2,102 | 2,272 | ||||||||||||||
Total | $ | 53,161 | $ | 19,130 | $ | 34,031 | $ | 56,072 | $ | 16,833 | $ | 39,239 | ||||||||
Schedule of estimated future amortization expense | Estimated future amortization expense excluding the effects of the Acentia and Remploy acquisitions is as follows (in thousands): | |||||||||||||||||||
Six months ended September 30, 2015 | $ | 2,758 | ||||||||||||||||||
Year ended September 30, 2016 | 5,354 | |||||||||||||||||||
Year ended September 30, 2017 | 4,955 | |||||||||||||||||||
Year ended September 30, 2018 | 3,820 | |||||||||||||||||||
Year ended September 30, 2019 | 2,936 | |||||||||||||||||||
Year ended September 30, 2020 | 1,832 | |||||||||||||||||||
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Revenue: | ||||||||
Revenue | $481,794 | $439,015 | $948,837 | $845,607 | ||||
Revenue (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Gross profit: | ||||||||
Gross profit | 124,345 | 120,672 | 243,612 | 226,588 | ||||
Gross profit (as a percent) | 25.80% | 27.50% | 25.70% | 26.80% | ||||
Selling, general, and administrative expense: | ||||||||
Selling, general and administrative expense | 59,392 | 53,624 | 111,353 | 104,889 | ||||
Selling, general, and administrative expense (as a percent) | 12.30% | 12.20% | 11.70% | |||||
Operating income: | ||||||||
Amortization of intangible assets | -1,432 | -1,468 | -2,907 | -2,823 | ||||
Acquisition-related expenses | -1,514 | -2,114 | ||||||
Legal and settlement expense | -600 | -600 | ||||||
Operating income | 62,007 | 64,980 | 127,238 | 118,276 | ||||
Operating income (as a percent) | 12.90% | 14.80% | 13.40% | 14.00% | ||||
Operating segments | ||||||||
Operating income: | ||||||||
Amortization of intangible assets | -1,432 | -1,468 | -2,907 | -2,823 | ||||
Acquisition-related expenses | -1,514 | [1] | -2,114 | [1] | ||||
Legal and settlement expense | -600 | [2] | -600 | [2] | ||||
Other | -95 | 37 | -100 | 21 | ||||
Other | ||||||||
Selling, general, and administrative expense: | ||||||||
Selling, general and administrative expense | 95 | -37 | 100 | -21 | ||||
Health Services | Operating segments | ||||||||
Revenue: | ||||||||
Revenue | 370,383 | 323,598 | 721,682 | 622,182 | ||||
Revenue (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Gross profit: | ||||||||
Gross profit | 91,887 | 84,868 | 177,302 | 161,374 | ||||
Gross profit (as a percent) | 24.80% | 26.20% | 24.60% | 25.90% | ||||
Selling, general, and administrative expense: | ||||||||
Selling, general and administrative expense | 40,774 | 35,133 | 75,031 | 69,308 | ||||
Selling, general, and administrative expense (as a percent) | 11.00% | 10.90% | 10.40% | 11.10% | ||||
Operating income: | ||||||||
Operating income | 51,113 | 49,735 | 102,271 | 92,066 | ||||
Operating income (as a percent) | 13.80% | 15.40% | 14.20% | 14.80% | ||||
Human Services | Operating segments | ||||||||
Revenue: | ||||||||
Revenue | 111,411 | 115,417 | 227,155 | 223,425 | ||||
Revenue (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Gross profit: | ||||||||
Gross profit | 32,458 | 35,804 | 66,310 | 65,214 | ||||
Gross profit (as a percent) | 29.10% | 31.00% | 29.20% | 29.20% | ||||
Selling, general, and administrative expense: | ||||||||
Selling, general and administrative expense | 18,523 | 18,528 | 36,222 | 35,602 | ||||
Selling, general, and administrative expense (as a percent) | 16.60% | 16.10% | 15.90% | 15.90% | ||||
Operating income: | ||||||||
Operating income | $13,935 | $17,276 | $30,088 | $29,612 | ||||
Operating income (as a percent) | 12.50% | 15.00% | 13.20% | 13.30% | ||||
[1] | Acquisition-related expenses are costs directly incurred from the purchases of Acentia and Remploy. | |||||||
[2] | Legal and settlement expenses consist of costs related to significant legal settlements and non-routine legal matters, including future probable legal costs expected to be incurred in connection with those matters. Legal expenses incurred in the ordinary course of business are included in their respective operating segments. |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Denominator: | ||||
Basic weighted average shares outstanding | 65,862 | 67,884 | 65,899 | 68,143 |
Employee stock options and unvested restricted stock units | 1,125 | 1,423 | 1,048 | 1,395 |
Denominator for diluted earnings per share | 66,987 | 69,307 | 66,947 | 69,538 |
Awards excluded from the calculation of diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
Business_combinations_Details
Business combinations (Details) | 6 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | Apr. 01, 2015 | Apr. 01, 2015 | Apr. 01, 2015 | Apr. 01, 2015 | Apr. 07, 2015 | Apr. 07, 2015 | Apr. 07, 2015 | |
USD ($) | USD ($) | USD ($) | Acentia LLC | Acentia LLC | Acentia LLC | Acentia LLC | Remploy | Remploy | Remploy | |
Subsequent events | Subsequent events | Customer relationships | Customer relationships | Subsequent events | Subsequent events | Subsequent events | ||||
USD ($) | USD ($) | Subsequent events | Subsequent events | USD ($) | GBP (£) | GBP (£) | ||||
USD ($) | ||||||||||
Business combinations | ||||||||||
Share capital acquired (as a percent) | 100.00% | 70.00% | ||||||||
Share capital held in trust for the benefit of employees (as a percent) | 30.00% | |||||||||
Preliminary Purchase Price Accounting | ||||||||||
Cash consideration, net of cash acquired | $2,670,000 | $294,005,000 | ||||||||
Percentage of goodwill anticipated to be deductible for tax purpose | 70.00% | |||||||||
Acquisition consideration | 3,000,000 | 2,000,000 | ||||||||
Net assets | 0 | |||||||||
Billed and unbilled receivables | 35,087,000 | |||||||||
Other assets | 3,635,000 | |||||||||
Property and equipment | 1,619,000 | |||||||||
Intangible assets | 69,900,000 | |||||||||
Total identifiable assets acquired | 110,241,000 | |||||||||
Accounts payable and other liabilities | 30,676,000 | |||||||||
Deferred revenue | 251,000 | |||||||||
Total liabilities assumed | 30,927,000 | |||||||||
Net identifiable assets acquired | 79,314,000 | |||||||||
Goodwill | 162,214,000 | 170,626,000 | 214,691,000 | |||||||
Net assets acquired | $294,005,000 | |||||||||
Amortization period of intangible assets | 14 years |
Business_combinations_Details_
Business combinations (Details 2) | 6 Months Ended | 0 Months Ended |
Mar. 31, 2015 | Apr. 01, 2015 | |
Intangible assets acquired | ||
Useful life | 11 years 6 months | |
Technology-based intangible assets | ||
Intangible assets acquired | ||
Useful life | 2 years 10 months 24 days | |
Acentia LLC | Customer relationships | Subsequent events | ||
Intangible assets acquired | ||
Amortization period of intangible assets | 14 years |
Business_combinations_Details_1
Business combinations (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Pro forma information | ||||
Revenue | $533,408 | $491,720 | $1,052,390 | $951,669 |
Income from continuing operations | $40,984 | $43,783 | $86,668 | $79,314 |
Basic earnings per share attributable to MAXIMUS (in dollars per share) | $0.62 | $0.64 | $1.30 | $1.17 |
Diluted earnings per share attributable to MAXIMUS (in dollars per share) | $0.61 | $0.63 | $1.28 | $1.14 |
Recovered_Sheet2
Goodwill and Intangible Assets (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Changes in goodwill | |
Balance at the beginning of the period | $170,626 |
Foreign currency translation | -8,412 |
Balance at the end of the period | 162,214 |
Health Services | |
Changes in goodwill | |
Balance at the beginning of the period | 124,920 |
Foreign currency translation | -6,210 |
Balance at the end of the period | 118,710 |
Human Services | |
Changes in goodwill | |
Balance at the beginning of the period | 45,706 |
Foreign currency translation | -2,202 |
Balance at the end of the period | $43,504 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Detail 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 |
Components of intangible assets | |||||
Cost | $53,161 | $53,161 | $56,072 | ||
Accumulated Amortization | 19,130 | 19,130 | 16,833 | ||
Intangible Assets, net | 34,031 | 34,031 | 39,239 | ||
Weighted average remaining life of assets not fully amortized | 11 years 6 months | ||||
Amortization expense | 1,432 | 1,468 | 2,907 | 2,823 | |
Anticipated annual amortization expense related to acquisitions | 6 | 6 | |||
Estimated future amortization expense | |||||
Six months ended September 30, 2015 | 2,758 | ||||
Year ended September 30, 2016 | 5,354 | ||||
Year ended September 30, 2017 | 4,955 | ||||
Year ended September 30, 2018 | 3,820 | ||||
Year ended September 30, 2019 | 2,936 | ||||
Year ended September 30, 2020 | 1,832 | ||||
Customer contracts and relationships | |||||
Components of intangible assets | |||||
Cost | 40,027 | 40,027 | 42,403 | ||
Accumulated Amortization | 9,545 | 9,545 | 7,821 | ||
Intangible Assets, net | 30,482 | 30,482 | 34,582 | ||
Weighted average remaining life of assets not fully amortized | 12 years 6 months | ||||
Technology-based intangible assets | |||||
Components of intangible assets | |||||
Cost | 8,828 | 8,828 | 9,295 | ||
Accumulated Amortization | 7,095 | 7,095 | 6,910 | ||
Intangible Assets, net | 1,733 | 1,733 | 2,385 | ||
Weighted average remaining life of assets not fully amortized | 2 years 10 months 24 days | ||||
Trademarks and trade names | |||||
Components of intangible assets | |||||
Cost | 4,306 | 4,306 | 4,374 | ||
Accumulated Amortization | 2,490 | 2,490 | 2,102 | ||
Intangible Assets, net | $1,816 | $1,816 | $2,272 | ||
Weighted average remaining life of assets not fully amortized | 2 years 6 months |
Credit_facilities_Details
Credit facilities (Details) (USD $) | 0 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Apr. 01, 2015 | Mar. 31, 2015 | Mar. 09, 2015 |
Acentia LLC | Subsequent events | |||
Credit Facilities | |||
Leverage ratio, actual | 1 | ||
Credit Agreement Expiring January 2020 | |||
Credit Facilities | |||
Maximum borrowing capacity | $400 | ||
Amount borrowed | 0 | ||
Number of letters of credit issued | 3 | ||
Credit Agreement Expiring January 2020 | Acentia LLC | Subsequent events | |||
Credit Facilities | |||
Amount borrowed | 225 | ||
Credit Agreement Expiring January 2020 | Minimum | |||
Credit Facilities | |||
Leverage ratio to calculate annual commitment fee (as a percent) | 0.15% | ||
Credit Agreement Expiring January 2020 | Minimum | Base Rate | |||
Credit Facilities | |||
Margin (as a percent) | 0.00% | ||
Credit Agreement Expiring January 2020 | Minimum | Eurocurrency Rate | |||
Credit Facilities | |||
Margin (as a percent) | 1.00% | ||
Credit Agreement Expiring January 2020 | Minimum | Index Rate | |||
Credit Facilities | |||
Margin (as a percent) | 1.00% | ||
Credit Agreement Expiring January 2020 | Maximum | |||
Credit Facilities | |||
Leverage ratio | 2.5 | ||
Leverage ratio to calculate annual commitment fee (as a percent) | 0.30% | ||
Credit Agreement Expiring January 2020 | Maximum | Base Rate | |||
Credit Facilities | |||
Margin (as a percent) | 0.75% | ||
Credit Agreement Expiring January 2020 | Maximum | Eurocurrency Rate | |||
Credit Facilities | |||
Margin (as a percent) | 1.75% | ||
Credit Agreement Expiring January 2020 | Maximum | Index Rate | |||
Credit Facilities | |||
Margin (as a percent) | 1.75% | ||
Swingline loans | |||
Credit Facilities | |||
Maximum borrowing capacity | 5 | ||
Letters of credit | |||
Credit Facilities | |||
Maximum borrowing capacity | 30 | ||
Amount borrowed | 4.7 | ||
Letters of credit | Acentia LLC | Subsequent events | |||
Credit Facilities | |||
Amount borrowed | 0.6 | ||
Letters of credit (Other than Revolving Credit Agreement) | |||
Credit Facilities | |||
Number of letters of credit issued | 2 | ||
Amount borrowed | 3 |
Supplemental_disclosures_Detai
Supplemental disclosures (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash and cash equivalents | ||||||
Cash and cash equivalents | $114,535,000 | $131,323,000 | $114,535,000 | $131,323,000 | $158,112,000 | $125,617,000 |
Percentage of cash and cash equivalents denominated and held in jurisdictions outside the United States | 33.00% | 33.00% | ||||
Foreign currency translation adjustments | -10,553,000 | 1,638,000 | -21,033,000 | -1,447,000 | ||
Effect of exchange rate changes on cash and cash equivalents | -5,937,000 | -1,027,000 | ||||
Decline in goodwill value | -8,412,000 | |||||
Deferred compensation plan | ||||||
Investments in mutual funds | 9,600,000 | 9,600,000 | ||||
Income taxes | ||||||
Income taxes paid | $37,600,000 | $35,500,000 |
Stock_Repurchase_Programs_Deta
Stock Repurchase Programs (Details) (USD $) | 6 Months Ended | ||
Share data in Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 |
Stock Repurchase Programs | |||
Stock repurchase programs, authorized amount | $275,000,000 | ||
Common shares repurchased | 0.8 | 0.8 | |
Common shares repurchased, cost | 30,618,000 | 35,480,000 | |
Amount remaining available for future stock repurchases | $104,600,000 |
Dividend_Details
Dividend (Details) (Subsequent events, USD $) | 0 Months Ended |
Apr. 03, 2015 | |
Subsequent events | |
Subsequent events | |
Cash dividend declared (in dollars per share) | $0.05 |