Segment Information

6 Months Ended

Mar. 31, 2019

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.