XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.20.2

Segment Information (Tables) | 9 Months Ended
--- | ---
Jun. 30, 2020
Segment Reporting [Abstract] |
Schedule of financial information for each of the Company's business segments | 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.
Schedule of identifiable assets by segment | 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 |

X
- Definition Tabular disclosure of all significant reconciling items in the reconciliation of total assets from reportable segments to the entity's consolidated assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -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 + Details
Name: | us-gaap_ReconciliationOfAssetsFromSegmentToConsolidatedTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -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 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
Name: | us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration