Business combinations and disposal (Tables)

12 Months Ended

Sep. 30, 2019

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