XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.19.1

Acquisition of Citizen Engagement Centers Business (Tables) | 6 Months Ended
--- | ---
Mar. 31, 2019
Business Combinations [Abstract] |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | At this time, we are in the process of finalizing our valuation of the acquired assets and assumed liabilities, including our analysis of the value of the intangible assets acquired and the tax effects of the acquisition. In addition, we continue to look for potential assets or liabilities which existed at the acquisition date. Our current estimate of the allocation of the purchase price, updated from December 31, 201 8, is shown below.
(dollars in thousands) |  | Estimated purchase price allocation at December 31, 2018 |  | Adjustments |  | Estimated purchase price allocation at March 31, 2019 |  |
Estimated cash consideration |  | $ | 429,335 |  | $ | 1,238 |  | $ | 430,573 |  |
Billed and unbilled receivables |  | $ | 145,319 |  | $ | (3,450) |  | $ | 141,869 |  |
Property and equipment |  | 6,454 |  | — |  | 6,454 |  |
Other assets |  | 681 |  | 3,412 |  | 4,093 |  |
Intangible assets |  | 122,300 |  | — |  | 122,300 |  |
Total identifiable assets acquired |  | 274,754 |  | (38) |  | 274,716 |  |
Accounts payable and other liabilities |  | 33,296 |  | (1,091) |  | 32,205 |  |
Net identifiable assets acquired |  | 241,458 |  | 1,053 |  | 242,511 |  |
Goodwill |  | 187,877 |  | 185 |  | 188,062 |  |
Net assets acquired |  | $ | 429,335 |  | $ | 1,238 |  | $ | 430,573 |  |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination |
(dollars in thousands) |  | Useful life |  | Fair value
Customer relationships - all contracts except U.S. Census |  | 10 years |  | $ | 85,300
Customer relationships - U.S. Census |  | 2 years |  | 37,000
Total intangible assets |  |  |  | $ | 122,300
Schedule of Business Acquisition, Pro Forma Information |
|  | Pro forma results for the three months ended March 31, |  |  |  | Pro forma results for the six months ended March 31, |  |
(dollars in thousands, except per share amounts) |  | 2019 |  | 2018 |  | 2019 |  | 2018
Revenue |  | $ | 736,520 |  | $ | 770,590 |  | $ | 1,499,568 |  | $ | 1,592,723
Net income |  | 61,766 |  | 56,803 |  | 120,962 |  | 119,991
Basic earnings per share attributable to MAXIMUS |  | 0.96 |  | 0.87 |  | 1.88 |  | 1.81
Diluted earnings per share attributed to MAXIMUS |  | 0.96 |  | 0.86 |  | 1.87 |  | 1.80
Schedule of the contribution of acquired business | The contribution of the acquired business for the three and six months ended March 31, 2019, is shown below.
|  |  |  |  |  | Acquisition Contribution for |  |
(dollars in thousands) |  |  |  |  |  | Three Months Ended March 31, 2019 |  | Six Months Ended March 31, 2019
Revenue |  |  |  |  |  | $ | 176,003 |  | $ | 277,266
Gross profit |  |  |  |  |  | 32,672 |  | 51,620
Schedule of Goodwill | Changes in goodwill for the six months ended March 31, 2019, were as follows:
(dollars in thousands) |  | U.S. Health & Human Services |  | U.S. Federal Services |  | Outside the United States |  | Total
Balance as of September 30, 2018 |  | $ | 139,588 |  | $ | 228,148 |  | $ | 32,146 |  | $ | 399,882
Estimated effect of the acquisition of citizen engagement centers business |  | 20,071 |  | 165,498 |  | 2,493 |  | 188,062
Foreign currency translation |  | — |  | — |  | (193) |  | (193)
Balance as of March 31, 2019 |  | $ | 159,659 |  | $ | 393,646 |  | $ | 34,446 |  | $ | 587,751
Schedule of Finite-Lived Intangible Assets | The following table sets forth the components of intangible assets (in thousands):
|  | As of March 31, 2019 |  |  |  |  |  | As of September 30, 2018 |  |  |  |
(dollars in thousands) |  | Cost |  | Accumulated Amortization |  | Intangible Assets, net |  | Cost |  | Accumulated Amortization |  | Intangible Assets, net
Customer contracts and relationships |  | $ | 248,770 |  | $ | 54,838 |  | $ | 193,932 |  | $ | 129,113 |  | $ | 42,683 |  | $ | 86,430
Technology based intangible assets |  | 5,648 |  | 4,267 |  | 1,381 |  | 5,750 |  | 4,212 |  | 1,538
Trademarks and trade names |  | 4,480 |  | 4,439 |  | 41 |  | 4,496 |  | 4,429 |  | 67
Total |  | $ | 258,898 |  | $ | 63,544 |  | $ | 195,354 |  | $ | 139,359 |  | $ | 51,324 |  | $ | 88,035
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the remainder of the current fiscal year and the next five fiscal years for the intangible assets held by the Company as of March 31, 2019, is as follows (in thousands):
Six months ended September 30, 2019 | $ | 18,044
2020 | 35,307
2021 | 18,258
2022 | 15,884
2023 | 15,785
2024 | 15,662

X
- Definition Tabular disclosure of the nature and amount of any material, nonrecurring adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings (supplemental pro forma information). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(4) -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
Name: | us-gaap_BusinessAcquisitionProFormaInformationNonrecurringAdjustmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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