XML 43 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Business combinations and disposals (Tables)
 12 Months Ended
Sep. 30, 2020
Business Combinations [Abstract]  
Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date The valuation of the assets acquired and liabilities assumed was as follows.
(in thousands)Final purchase price allocation
Cash consideration$430,723 
Billed and unbilled receivables142,077 
Property and equipment13,961 
Other assets4,530 
Intangible assets122,300 
Total identifiable assets acquired282,868 
Accounts payable and other liabilities36,785 
Net identifiable assets acquired246,083 
Goodwill184,640 
Net assets acquired$430,723 
Summary of valuation of the intangible assets acquired
(in thousands)Useful lifeFair value
Customer relationships - all contracts except U.S. Census10 years$85,300 
Customer relationship - U.S. Census2 years37,000 
Total intangible assets$122,300 
Business Acquisition, Pro Forma Information
The following table presents certain results for the years ended September 30, 2019 and 2018, as though the acquisition had occurred on October 1, 2017. The pro forma results below eliminate intercompany transactions, include amortization charges for acquired intangible assets, eliminate pre-acquisition transaction costs and include estimates of interest expense, as well as corresponding changes in our tax charge. This pro forma information is presented for information only. For example, this pro forma information does not include any of our synergies but does include, in both years shown, a charge of $18.5 million, related to the amortization of the U.S. Census customer relationship intangible asset. Although the U.S. Census contract commenced prior to October 1, 2017, more of the benefit was recorded in fiscal year 2020. For these and other reasons, this pro forma information is not necessarily indicative of the results if the acquisition had taken place on that date.

Pro forma results for the year ended September 30,
(dollars in thousands, except per share data)20192018
Revenue$2,985,244 $3,016,823 
Net income243,968 218,647 
Basic earnings per share attributable to Maximus3.79 3.34 
Diluted earnings per share attributed to Maximus3.77 3.32 
Schedule of changes in the carrying amount of goodwill
Changes in goodwill for the years ended September 30, 2020 and 2019, are shown below.

(in thousands)U.S. ServicesU.S. Federal
Services		Outside the U.S.Total
Balance as of September 30, 2018$139,588 $228,148 $32,146 $399,882 
Acquisition of citizen engagement centers business24,884 154,470 5,286 184,640 
Acquisition of GT Hiring— — 1,347 1,347 
Other— — 372 372 
Foreign currency translation— — (1,772)(1,772)
Balance as of September 30, 2019164,472 382,618 37,379 584,469 
Acquisitions— — 7,652 7,652 
Disposal of Q2 Administrators, LLC— (899)— (899)
Foreign currency translation— — 1,907 1,907 
Balance as of September 30, 2020$164,472 $381,719 $46,938 $593,129 
Schedule of components of intangible assets
The following table sets forth the components of intangible assets:
 As of September 30, 2020As of September 30, 2019
(in thousands)CostAccumulated
Amortization		Intangible
Assets, net		CostAccumulated
Amortization		Intangible
Assets, net
Customer contracts and relationships$235,287 $90,302 $144,985 $250,455 $72,430 $178,025 
Technology-based intangible assets5,631 4,723 908 5,613 4,405 1,208 
Trademarks and trade names4,479 4,479 — 4,483 4,466 17 
Total$245,397 $99,504 $145,893 $260,551 $81,301 $179,250 
Schedule of estimated future amortization expense The estimated future amortization expense for the next five years for the intangible assets held by the Company as of September 30, 2020, is as follows:
(in thousands)Estimated Future Amortization Expense
2021$18,969 
202216,596 
202316,498 
202416,374 
202516,152