XML 32 R27.htm IDEA: XBRL DOCUMENT
v3.19.3

Business combinations and disposal (Tables) | 12 Months Ended
--- | ---
Sep. 30, 2019
Business Combinations [Abstract] |
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date |
(dollars in thousands) |  | Estimated purchase price allocation at June 30, 2019 |  | Adjustments |  | Final purchase price allocation at September 30, 2019 |  |
Cash consideration |  | $ | 430,699 |  |  | $ | 24 |  |  | $ | 430,723 |  |  |
Billed and unbilled receivables |  | 142,165 |  |  | (88) |  |  | 142,077 |  |  |
Property and equipment |  | 8,974 |  |  | 4,987 |  |  | 13,961 |  |  |
Other assets |  | 4,508 |  |  | 22 |  |  | 4,530 |  |  |
Intangible assets |  | 122,300 |  |  | — |  |  | 122,300 |  |  |
Total identifiable assets acquired |  | 277,947 |  |  | 4,921 |  |  | 282,868 |  |  |
Accounts payable and other liabilities |  | 31,862 |  |  | 4,923 |  |  | 36,785 |  |  |
Net identifiable assets acquired |  | 246,085 |  |  | (2) |  |  | 246,083 |  |  |
Goodwill |  | 184,614 |  |  | 26 |  |  | 184,640 |  |  |
Net assets acquired |  | $ | 430,699 |  |  | $ | 24 |  |  | $ | 430,723 |  |  |
Summary of valuation of the intangible assets acquired |
|  | Useful life |  | Fair value
Customer relationships - all contracts except U.S. Census |  | 10 years |  | $ | 85,300 |
Customer relationship - U.S. Census |  | 2 years |  | 37,000 |
Total intangible assets |  |  |  | $ | 122,300 |
Business Acquisition, Pro Forma Information | The following table presents certain results for the years ended September 30, 2019 and 2018, as though the acquisition had occurred on October 1, 2017. The pro forma results below eliminate intercompany transactions, include amortization charges for acquired intangible assets, eliminate pre-acquisition transaction costs and include estimates of interest expense, as well as corresponding changes in our tax charge. This pro forma information is presented for information only. For example, this pro forma information does not include any of our anticipated synergies but does include, in both years shown, a charge of $18.5 million, related to the amortization of the U.S. Census customer relationship intangible asset. Although the U.S. Census contract commenced prior to October 1, 2017, more of the benefit will be recorded in fiscal year 2020. For these and other reasons, this pro forma information is not necessarily indicative of the results if the acquisition had taken place on that date.
|  | Pro forma results for the year ended September 30, |  |
(dollars in thousands, except per share data) |  | 2019 |  | 2018
Revenue |  | $ | 2,985,244 |  |  |  | $ | 3,016,823 |
Net income |  | 243,968 |  |  |  | 218,647 |
Basic earnings per share attributable to MAXIMUS |  | 3.79 |  |  |  | 3.34 |
Diluted earnings per share attributed to MAXIMUS |  | 3.77 |  |  |  | 3.32 |
Schedule of changes in the carrying amount of goodwill | Changes in goodwill for the years ended September 30, 2019 and 2018 are shown below. Goodwill has been reallocated to conform with our new segment reporting.
(Dollars in thousands) | U.S. Health and Human Services |  | U.S. Federal Services |  | Outside the U.S. |  | Total
Balance as of September 30, 2017 | $ | 139,588 |  |  | $ | 228,148 |  |  | $ | 35,240 |  |  | $ | 402,976 |
Foreign currency translation | — |  |  | — |  |  | (3,094) |  |  | (3,094) |
Balance as of September 30, 2018 | 139,588 |  |  | 228,148 |  |  | 32,146 |  |  | 399,882 |
Acquisition of citizen engagement centers business | 24,884 |  |  | 154,470 |  |  | 5,286 |  |  | 184,640 |
Acquisition of GT Hiring Solutions | — |  |  | — |  |  | 1,347 |  |  | 1,347 |
Other | — |  |  | — |  |  | 372 |  |  | 372 |
Foreign currency translation | — |  |  | — |  |  | (1,772) |  |  | (1,772) |
Balance as of September 30, 2019 | $ | 164,472 |  |  | $ | 382,618 |  |  | $ | 37,379 |  |  | $ | 584,469 |
Schedule of components of intangible assets | The following table sets forth the components of intangible assets (in thousands):
| As of September 30, 2019 |  |  |  |  |  | As of September 30, 2018 |  |  |  |
| Cost |  | Accumulated Amortization |  | Intangible Assets, net |  | Cost |  | Accumulated Amortization |  | Intangible Assets, net
Customer contracts and relationships | $ | 250,455 |  |  | $ | 72,430 |  |  | $ | 178,025 |  |  | $ | 129,113 |  |  | $ | 42,683 |  |  | $ | 86,430 |
Technology-based intangible assets | 5,613 |  |  | 4,405 |  |  | 1,208 |  |  | 5,750 |  |  | 4,212 |  |  | 1,538 |
Trademarks and trade names | 4,483 |  |  | 4,466 |  |  | 17 |  |  | 4,496 |  |  | 4,429 |  |  | 67 |
Total | $ | 260,551 |  |  | $ | 81,301 |  |  | $ | 179,250 |  |  | $ | 139,359 |  |  | $ | 51,324 |  |  | $ | 88,035 |
Schedule of estimated future amortization expense | The estimated future amortization expense for the next five years for the intangible assets held by the Company as of September 30, 2019, is as follows (in thousands):
2020 | $ | 35,632 |
2021 | 18,582 |
2022 | 16,212 |
2023 | 16,118 |
2024 | 15,994 |

X
- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(3) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of finite-lived intangible assets acquired as part of a business combination or through an asset purchase, by major class and in total, including the value of the asset acquired, any significant residual value (the expected value of the asset at the end of its useful life) and the weighted-average amortization period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 + Details
Name: | us-gaap_ScheduleOfFiniteLivedIntangibleAssetsAcquiredAsPartOfBusinessCombinationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets, excluding financial assets and goodwill, lacking physical substance with a finite life, by either major class or business segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 + Details
Name: | us-gaap_ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13854-109267 + Details
Name: | us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161108&loc=d3e4845-128472 + Details
Name: | us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the amount of amortization expense expected to be recorded in succeeding fiscal years for finite-lived intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 + Details
Name: | us-gaap_ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration