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Business segments (Tables)

12 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of financial information for each of the Company's business segments

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.

Schedule of distribution of revenues

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

Schedule of identifiable assets by segment

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

Schedule of distribution of total long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets

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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