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Segment Information | 3 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information 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. The segment continues to execute on its clinical evolution strategy by expanding its clinical offerings in public health with new work in contact tracing, disease investigation, and vaccine distribution support services as part of the government's COVID-response efforts. We also successfully expanded into the unemployment insurance market, supporting more than 15 states in their unemployment insurance programs. •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. The segment recently expanded its clinical offerings in public health with new work supporting the Federal Government's COVID-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 test result, and increased support for the IRS Wage and Investment Division's 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 international governments and commercial clients. These services include 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; in addition to Italy, Saudi Arabia, Singapore, South Korea, and Sweden, where we predominantly provide employment support and job seeker services. Expenses that are not specifically included in the segments are included in other categories, including amortization of intangible assets and the direct costs of acquisitions. These costs are excluded from measuring each segment's operating performance.
|  |  |  | Three Months Ended December 31,
(in thousands) |  |  |  |  |  |  |  |  |  | 2020 |  | % (1) |  | 2019 |  | % (1)
Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Services |  |  |  |  |  |  |  |  |  | $ | 384,934 |  |  |  |  | $ | 312,281 |  |  |
U.S. Federal Services |  |  |  |  |  |  |  |  |  | 405,245 |  |  |  |  | 366,571 |  |  |
Outside the U.S. |  |  |  |  |  |  |  |  |  | 155,375 |  |  |  |  | 139,377 |  |  |
Total |  |  |  |  |  |  |  |  |  | $ | 945,554 |  |  |  |  | $ | 818,229 |  |  |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Services |  |  |  |  |  |  |  |  |  | $ | 99,002 |  |  | 25.7% |  | $ | 89,590 |  |  | 28.7%
U.S. Federal Services |  |  |  |  |  |  |  |  |  | 82,496 |  |  | 20.4% |  | 70,821 |  |  | 19.3%
Outside the U.S. |  |  |  |  |  |  |  |  |  | 24,557 |  |  | 15.8% |  | 15,039 |  |  | 10.8%
Total |  |  |  |  |  |  |  |  |  | $ | 206,055 |  |  | 21.8% |  | $ | 175,450 |  |  | 21.4%
Selling, general & administrative expense: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Services |  |  |  |  |  |  |  |  |  | $ | 37,456 |  |  | 9.7% |  | $ | 31,398 |  |  | 10.1%
U.S. Federal Services |  |  |  |  |  |  |  |  |  | 52,252 |  |  | 12.9% |  | 39,239 |  |  | 10.7%
Outside the U.S. |  |  |  |  |  |  |  |  |  | 20,032 |  |  | 12.9% |  | 16,053 |  |  | 11.5%
Other (2) |  |  |  |  |  |  |  |  |  | 2,227 |  |  | NM |  | 537 |  |  | NM
Total |  |  |  |  |  |  |  |  |  | $ | 111,967 |  |  | 11.8% |  | $ | 87,227 |  |  | 10.7%
Operating income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Services |  |  |  |  |  |  |  |  |  | $ | 61,546 |  |  | 16.0% |  | $ | 58,192 |  |  | 18.6%
U.S. Federal Services |  |  |  |  |  |  |  |  |  | 30,244 |  |  | 7.5% |  | 31,582 |  |  | 8.6%
Outside the U.S. |  |  |  |  |  |  |  |  |  | 4,525 |  |  | 2.9% |  | (1,014) |  |  | (0.7)%
Amortization of intangible assets |  |  |  |  |  |  |  |  |  | (6,516) |  |  | NM |  | (9,088) |  |  | NM
Acquisition-related expenses |  |  |  |  |  |  |  |  |  | (1,873) |  |  | NM |  | — |  |  | NM
Other (2) |  |  |  |  |  |  |  |  |  | (354) |  |  | NM |  | (537) |  |  | NM
Total |  |  |  |  |  |  |  |  |  | $ | 87,572 |  |  | 9.3% |  | $ | 79,135 |  |  | 9.7%
(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. Identifiable assets for the segments are shown below:
(in thousands) |  | December 31, 2020 |  | September 30, 2020
U.S. Services |  | $ | 729,573 |  |  | $ | 702,728 |
U.S. Federal Services |  | 889,220 |  |  | 937,477 |
Outside the U.S. |  | 228,779 |  |  | 224,532 |
Corporate |  | 218,661 |  |  | 159,965 |
Total |  | $ | 2,066,233 |  |  | $ | 2,024,702 |

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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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