XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.19.1

Segment Information (Tables) | 6 Months Ended
--- | ---
Mar. 31, 2019
Segment Reporting [Abstract] |
Schedule of financial information for each of the Company's business segments | The table below provides certain financial information for each of our business segments. As noted in "Note 1. Organization and Basis of Presentation," we have made changes to our business segments in fiscal year 2019. Accordingly, the comparative results shown for the three and six months ended March 31, 2018, are presented differently from those shown in previous filings. From October 1, 2018, we operated our business through three segments. •Our U.S. Health and Human Services Segment provides a variety of business process services such as program administration, appeals and assessments work, and related consulting work for U.S. state and local government programs. These services support a variety of programs including Medicaid, the Children’s Health Insurance Program, the Affordable Care Act and Temporary Assistance for Needy Families. •Our U.S. Federal Services Segment provides business process solutions, including program administration, appeals and assessment services as well as system and software development and maintenance services for various U.S. federal civilian programs. This segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio and continues to be managed within this segment. •Our Outside the U.S. Segment provides business process solutions for governments and commercial clients outside the U.S., including health and disability assessments, program administration for welfare-to-work services and other related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service, the Work & Health Programme and Fair Start; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; Saudi Arabia and Singapore.
|  | Three Months Ended March 31, |  |  |  |  |  |  |  | Six Months Ended March 31, |  |  |  |  |  |
(dollars in thousands) |  | 2019 |  | % (1) |  | 2018 |  | % (1) |  | 2019 |  | % (1) |  | 2018 |  | % (1)
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 290,737 |  |  |  | $ | 306,249 |  |  |  | $ | 584,950 |  |  |  | $ | 610,490 |  |
U.S. Federal Services |  | 289,736 |  |  |  | 116,327 |  |  |  | 506,723 |  |  |  | 249,310 |  |
Outside the U.S. |  | 156,047 |  |  |  | 190,211 |  |  |  | 309,466 |  |  |  | 376,135 |  |
Total |  | $ | 736,520 |  |  |  | $ | 612,787 |  |  |  | $ | 1,401,139 |  |  |  | $ | 1,235,935 |  |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 86,260 |  | 29.7% |  |  | $ | 86,586 |  | 28.3% |  |  | $ | 174,291 |  | 29.8% |  |  | $ | 170,817 |  | 28.0% |
U.S. Federal Services |  | 60,696 |  | 20.9% |  |  | 27,374 |  | 23.5% |  |  | 108,681 |  | 21.4% |  |  | 60,732 |  | 24.4% |
Outside the U.S. |  | 22,466 |  | 14.4% |  |  | 34,843 |  | 18.3% |  |  | 45,715 |  | 14.8% |  |  | 69,214 |  | 18.4% |
Total |  | $ | 169,422 |  | 23.0% |  |  | $ | 148,803 |  | 24.3% |  |  | $ | 328,687 |  | 23.5% |  |  | $ | 300,763 |  | 24.3% |
Selling, general & administrative expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 29,400 |  | 10.1% |  |  | $ | 36,616 |  | 12.0% |  |  | $ | 61,539 |  | 10.5% |  |  | $ | 71,421 |  | 11.7% |
U.S. Federal Services |  | 31,104 |  | 10.7% |  |  | 17,540 |  | 15.1% |  |  | 57,736 |  | 11.4% |  |  | 34,188 |  | 13.7% |
Outside the U.S. |  | 17,992 |  | 11.5% |  |  | 18,403 |  | 9.7% |  |  | 36,800 |  | 11.9% |  |  | 36,509 |  | 9.7% |
Restructuring costs |  | — |  | NM |  | 2,320 |  | NM |  | — |  | NM |  | 2,320 |  | NM
Other |  | (394) |  | NM |  | — |  | NM |  | 1,698 |  | NM |  | — |  | NM
Total |  | $ | 78,102 |  | 10.6% |  |  | $ | 74,879 |  | 12.2% |  |  | $ | 157,773 |  | 11.3% |  |  | $ | 144,438 |  | 11.7% |
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 56,860 |  | 19.6% |  |  | $ | 49,970 |  | 16.3% |  |  | $ | 112,752 |  | 19.3% |  |  | $ | 99,396 |  | 16.3% |
U.S. Federal Services |  | 29,592 |  | 10.2% |  |  | 9,834 |  | 8.5% |  |  | 50,945 |  | 10.1% |  |  | 26,544 |  | 10.6% |
Outside the U.S. |  | 4,474 |  | 2.9% |  |  | 16,440 |  | 8.6% |  |  | 8,915 |  | 2.9% |  |  | 32,705 |  | 8.7% |
Amortization of intangible assets |  | (9,519) |  | NM |  | (2,603) |  | NM |  | (14,977) |  | NM |  | (5,321) |  | NM
Restructuring costs (2) |  | — |  | NM |  | (2,320) |  | NM |  | — |  | NM |  | (2,320) |  | NM
Other (3) |  | 394 |  | NM |  | — |  | NM |  | (1,698) |  | NM |  | — |  | NM
Total |  | $ | 81,801 |  | 11.1% |  |  | $ | 71,321 |  | 11.6% |  |  | $ | 155,937 |  | 11.1% |  |  | $ | 151,004 |  | 12.2% |
(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) During fiscal year 2018, we incurred costs in restructuring our United Kingdom business. (3) Other selling, general & administrative expenses includes credits and costs not directly allocated to a particular segment. In the six month periods ended March 31, 2019, these include $2.7 million of costs directly related to the acquisition of the citizen engagement centers business. Refer to "Note 5. Acquisition of Citizen Engagement Centers Business" for more details.
Schedule of identifiable assets by segment | Identifiable assets for the segments are shown below (in thousands):
|  | March 31, 2019 |  | September 30, 2018
U.S. Health & Human Services |  | $ | 478,584 |  | $ | 442,063
U.S. Federal Services |  | 837,844 |  | 375,807
Outside the U.S. |  | 224,274 |  | 184,872
Corporate |  | 147,014 |  | 459,258
Total |  | $ | 1,687,716 |  | $ | 1,462,000

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8924-108599 + Details
Name: | us-gaap_ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: 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 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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