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Business segments | 12 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Business segments | Business segments We conduct our operations through three business segments: U.S. Services, U.S. Federal Services, and Outside the U.S. •Our U.S. 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 the Affordable Care Act (ACA), Medicaid, the Children’s Health Insurance Program (CHIP), Temporary Assistance to Needy Families (TANF), and child support programs. In fiscal year 2020, the segment further executed on its clinical evolution strategy by expanding its clinical offerings in public health with new work in contact tracing, disease investigation, and COVID-19 response efforts. We also successfully expanded into the unemployment insurance market as Maximus supported 14 states in their unemployment insurance programs. We changed the name of our U.S. Health and Human Services to U.S. Services to recognize the evolution our service offerings into new markets and clients. •Our U.S. Federal Services Segment provides program administration, appeals and assessments services and technology solutions, including system and software development and maintenance services, for various U.S. federal civilian programs. The 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. In fiscal year 2020, the segment expanded its clinical offerings in public health with new work supporting the Federal Government's COVID-19 response efforts. This included expanded work with the Centers for Disease Control and Prevention (CDC) for their helpline, an outbound customer support center for the Office of the Assistant Secretary for Health to notify individuals throughout the U.S. of their COVID-19 test result and IRS Wage and Investment Division response efforts to general inquiries regarding the Coronavirus Aid Relief & Economic Security (CARES) Act and Economic Impact Payment Service Plan. •Our Outside the U.S. Segment provides business process services (BPS) solutions for governments and commercial clients in geographies beyond the U.S., including health and disability assessments, program administration for employment services and other job seeker-related services. We support programs and deliver services in the United Kingdom (U.K.), including the Health Assessment Advisory Service (HAAS), 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; Italy, Saudi Arabia, Singapore, South Korea and Sweden. Expenses that are not specifically included in the segments are included in other categories, including amortization of intangible assets, costs incurred in restructuring our U.K. business, the direct costs of acquisitions and the gain on sale of Q2 Administrators, LLC. These costs are excluded from measuring each segment's operating performance. The results of these segments for the three years ended September 30, 2020, are shown below.
|  | Year ended September 30,
(in thousands) |  | 2020 |  | 2019 |  | 2018
Revenue: |  |  |  |  |  |
U.S. Services |  | 1,329,274 |  |  | $ | 1,176,488 |  |  | $ | 1,213,911 |
U.S. Federal Services |  | 1,633,337 |  |  | 1,111,197 |  |  | 478,911 |
Outside the U.S. |  | 498,926 |  |  | 599,130 |  |  | 699,414 |
Total |  | $ | 3,461,537 |  |  | $ | 2,886,815 |  |  | $ | 2,392,236 |
Gross profit: |  |  |  |  |  |
U.S. Services |  | $ | 360,272 |  |  | $ | 344,109 |  |  | $ | 359,624 |
U.S. Federal Services |  | 318,925 |  |  | 242,070 |  |  | 126,698 |
Outside the U.S. |  | 31,805 |  |  | 85,005 |  |  | 108,063 |
Total |  | $ | 711,002 |  |  | $ | 671,184 |  |  | $ | 594,385 |
Selling, general and administrative expense: |  |  |  |  |  |
U.S. Services |  | $ | 132,489 |  |  | $ | 123,275 |  |  | $ | 140,990 |
U.S. Federal Services |  | 186,023 |  |  | 126,128 |  |  | 69,312 |
Outside the U.S. |  | 65,938 |  |  | 68,944 |  |  | 72,095 |
Gain on sale of a business (1) |  | (1,718) |  |  | — |  |  | — |
Other (2) |  | 4,358 |  |  | 2,676 |  |  | 2,844 |
Total |  | $ | 387,090 |  |  | $ | 321,023 |  |  | $ | 285,241 |
Operating income: |  |  |  |  |  |
U.S. Services |  | $ | 227,783 |  |  | $ | 220,834 |  |  | $ | 218,634 |
U.S. Federal Services |  | 132,902 |  |  | 115,942 |  |  | 57,386 |
Outside the U.S. |  | (34,133) |  |  | 16,061 |  |  | 35,968 |
Amortization of intangible assets |  | (35,634) |  |  | (33,054) |  |  | (10,308) |
Restructuring costs (3) |  | — |  |  | — |  |  | (3,353) |
Acquisition-related expenses (4) |  | (4,621) |  |  | (2,691) |  |  | (947) |
Gain on sale of a business (1) |  | 1,718 |  |  | — |  |  | — |
Other |  | 263 |  |  | 15 |  |  | (1,897) |
Total |  | $ | 288,278 |  |  | $ | 317,107 |  |  | $ | 295,483 |
Depreciation and amortization: |  |  |  |  |  |
U.S. Services |  | $ | 20,951 |  |  | $ | 18,466 |  |  | $ | 20,963 |
U.S. Federal Services |  | 25,153 |  |  | 16,802 |  |  | 8,478 |
Outside the U.S. |  | 18,423 |  |  | 17,136 |  |  | 22,443 |
Total |  | $ | 64,527 |  |  | $ | 52,404 |  |  | $ | 51,884 |
(1) During fiscal year 2020, we sold Q2 Administrators LLC, a subsidiary within our U.S. Federal Services Segment, resulting in a gain. Refer to "Note 6. Business combinations and disposals" for more details. (2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment. (3) Restructuring costs incurred in the year ending September 30, 2018, were related to our United Kingdom businesses. (4) Acquisition-related expenses are costs of completed business combinations as well as the costs of any unsuccessful transactions. The charges above include costs for the acquisition of the citizen engagement centers business that were incurred in fiscal years 2018 and 2019. We operate in the United States, Australia, Canada, Italy, Saudi Arabia, Singapore, South Korea, Sweden, and the United Kingdom. Our revenue was distributed as follows:
|  | Year ended September 30,
(in thousands) |  | 2020 |  | 2019 |  | 2018
United States |  | $ | 2,962,610 |  |  | $ | 2,287,685 |  |  | $ | 1,692,823 |
United Kingdom |  | 246,335 |  |  | 293,695 |  |  | 347,026 |
Australia |  | 147,156 |  |  | 198,795 |  |  | 247,850 |
Rest of World |  | 105,436 |  |  | 106,640 |  |  | 104,537 |
Total |  | $ | 3,461,537 |  |  | $ | 2,886,815 |  |  | $ | 2,392,236 |
Identifiable assets for the segments are shown below:
|  | Year ended September 30,
(in thousands) |  | 2020 |  | 2019 |  |
U.S. Services |  | $ | 702,728 |  |  | $ | 500,641 |  |  |
U.S. Federal Services |  | 937,477 |  |  | 795,553 |  |  |
Outside the U.S. |  | 224,532 |  |  | 234,769 |  |  |
Corporate/Other |  | 159,965 |  |  | 214,769 |  |  |
Total |  | $ | 2,024,702 |  |  | $ | 1,745,732 |  |  |
Our long-lived assets, consisting of property and equipment, capitalized software costs, operating lease right-of-use assets and deferred compensation plan assets were distributed as follows:
|  | Year ended September 30,
(in thousands) |  | 2020 |  | 2019 |  |
United States |  | $ | 255,346 |  |  | $ | 134,511 |  |  |
Australia |  | 30,183 |  |  | 11,950 |  |  |
Canada |  | 24,522 |  |  | 14,681 |  |  |
United Kingdom |  | 7,610 |  |  | 3,129 |  |  |
Rest of World |  | 1,071 |  |  | 595 |  |  |
Total |  | $ | 318,732 |  |  | $ | 164,866 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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