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Segment Information | 9 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information The table below provides certain financial information for each of our business segments. We operate 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 services, 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 and the Children’s Health Insurance Program (CHIP). We also serve as administrators in state-based welfare-to-work and child support programs. •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, independent medical reviews, 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 and case management for employment services and other work-support programs. We deliver services in the United Kingdom, 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 and Sweden.
|  | Three Months Ended June 30, |  |  |  |  |  |  |  | Nine Months Ended June 30, |  |  |  |  |  |
(dollars in thousands) |  | 2020 |  | % (1) |  | 2019 |  | % (1) |  | 2020 |  | % (1) |  | 2019 |  | % (1)
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 336,950 |  |  |  |  | $ | 291,132 |  |  |  |  | $ | 957,929 |  |  |  |  | $ | 876,082 |  |  |
U.S. Federal Services |  | 450,143 |  |  |  |  | 292,295 |  |  |  |  | 1,210,105 |  |  |  |  | 799,018 |  |  |
Outside the U.S. |  | 114,244 |  |  |  |  | 147,283 |  |  |  |  | 369,667 |  |  |  |  | 456,749 |  |  |
Total |  | $ | 901,337 |  |  |  |  | $ | 730,710 |  |  |  |  | $ | 2,537,701 |  |  |  |  | $ | 2,131,849 |  |  |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 93,029 |  |  | 27.6% |  | $ | 86,664 |  |  | 29.8% |  | $ | 268,073 |  |  | 28.0% |  | $ | 260,955 |  |  | 29.8%
U.S. Federal Services |  | 84,723 |  |  | 18.8% |  | 66,803 |  |  | 22.9% |  | 232,502 |  |  | 19.2% |  | 175,484 |  |  | 22.0%
Outside the U.S. |  | 7,851 |  |  | 6.9% |  | 20,780 |  |  | 14.1% |  | 13,576 |  |  | 3.7% |  | 66,495 |  |  | 14.6%
Total |  | $ | 185,603 |  |  | 20.6% |  | $ | 174,247 |  |  | 23.8% |  | $ | 514,151 |  |  | 20.3% |  | $ | 502,934 |  |  | 23.6%
Selling, general & administrative expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 31,996 |  |  | 9.5% |  | $ | 32,414 |  |  | 11.1% |  | $ | 102,633 |  |  | 10.7% |  | $ | 93,953 |  |  | 10.7%
U.S. Federal Services |  | 45,490 |  |  | 10.1% |  | 32,896 |  |  | 11.3% |  | 131,455 |  |  | 10.9% |  | 90,632 |  |  | 11.3%
Outside the U.S. |  | 13,668 |  |  | 12.0% |  | 15,791 |  |  | 10.7% |  | 47,125 |  |  | 12.7% |  | 52,591 |  |  | 11.5%
Gain on sale of a business (3) |  | (1,706) |  |  | NM |  | — |  |  | NM |  | (1,706) |  |  | NM |  | — |  |  | NM
Other (2) |  | 134 |  |  | NM |  | 503 |  |  | NM |  | 4,155 |  |  | NM |  | 2,201 |  |  | NM
Total |  | $ | 89,582 |  |  | 9.9% |  | $ | 81,604 |  |  | 11.2% |  | $ | 283,662 |  |  | 11.2% |  | $ | 239,377 |  |  | 11.2%
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Health & Human Services |  | $ | 61,033 |  |  | 18.1% |  | $ | 54,250 |  |  | 18.6% |  | $ | 165,440 |  |  | 17.3% |  | $ | 167,002 |  |  | 19.1%
U.S. Federal Services |  | 39,233 |  |  | 8.7% |  | 33,907 |  |  | 11.6% |  | 101,047 |  |  | 8.4% |  | 84,852 |  |  | 10.6%
Outside the U.S. |  | (5,817) |  |  | (5.1)% |  | 4,989 |  |  | 3.4% |  | (33,549) |  |  | (9.1)% |  | 13,904 |  |  | 3.0%
Amortization of intangible assets |  | (8,712) |  |  | NM |  | (9,049) |  |  | NM |  | (26,734) |  |  | NM |  | (24,026) |  |  | NM
Gain on sale of a business (3) |  | 1,706 |  |  | NM |  | — |  |  | NM |  | 1,706 |  |  | NM |  | — |  |  | NM
Other |  | (134) |  |  | NM |  | (503) |  |  | NM |  | (4,155) |  |  | NM |  | (2,201) |  |  | NM
Total |  | $ | 87,309 |  |  | 9.7% |  | $ | 83,594 |  |  | 11.4% |  | $ | 203,755 |  |  | 8.0% |  | $ | 239,531 |  |  | 11.2%
(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment, including the costs for actual and potential acquisitions of other businesses. (3) 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. Acquisitions and Divestiture" for more details. Identifiable assets for the segments are shown below (in thousands):
|  | June 30, 2020 |  | September 30, 2019
U.S. Health & Human Services |  | $ | 701,864 |  |  | $ | 500,641 |
U.S. Federal Services |  | 992,207 |  |  | 795,553 |
Outside the U.S. |  | 200,752 |  |  | 234,769 |
Corporate |  | 168,163 |  |  | 214,769 |
Total |  | $ | 2,062,986 |  |  | $ | 1,745,732 |

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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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