XML 33 R22.htm IDEA: XBRL DOCUMENT v3.21.2

Business combinations (Tables)

9 Months Ended

Jun. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The balances below represent our best estimate and are subject to change:

(in thousands)						Estimated Fair Value of Assets and Liabilities
Cash consideration paid, net of cash acquired						$	1,360,231
Estimated additional cash payments						7,494
Estimated cash consideration, net of cash acquired						$	1,367,725
Accounts receivable - billed, billable and unbilled						$	44,078
Prepaid expenses and other current assets						13,911
Property and equipment, net						9,113
Operating lease right-of-use assets						18,898
Intangible assets						664,000
Other assets						12,816
Total identifiable assets acquired						762,816
Accounts payable and accrued compensation						42,978
Operating lease liabilities						18,898
Income taxes payable						6,196
Deferred income taxes						177,626
Other long-term liabilities						6,667
Net identifiable assets acquired						510,451
Goodwill						857,274
Net assets acquired						$	1,367,725

We are in the process of finalizing the valuation as of March 1, 2021, of all acquired assets and assumed liabilities and, accordingly, the balances below represent our best estimate and are subject to change:

(in thousands)						Estimated fair value of assets and liabilities at acquisition date as of March 31, 2021						Adjustments						Estimated fair value of assets and liabilities at acquisition date as of June 30, 2021
Cash consideration, net of cash acquired						$	419,864					$	(767)					$	419,097
Accounts receivable - billed, billable and unbilled						$	39,274					$	101					$	39,375
Prepaid expenses and other current assets						1,336						(410)						926
Property and equipment, net						703						(703)						—
Operating lease right-of-use assets						25,089						(129)						24,960
Other assets						84						(10)						74
Intangible assets						105,000						—						105,000
Total identifiable assets acquired						171,486						(1,151)						170,335
Accounts payable and other liabilities						28,301						562						28,863
Operating lease liabilities, less current portion						26,786						(385)						26,401
Net identifiable assets acquired						116,399						(1,328)						115,071
Goodwill						303,465						561						304,026
Net assets acquired						$	419,864					$	(767)					$	419,097

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

A summary of the asset values and asset lives is as follows:

(in thousands)

Estimated Straight-Line Useful Life

Estimated Fair Value

Customer contracts and relationships

12 years

$

580,000

Provider network

12 years

57,000

Technology-based intangible assets

14 years

27,000

Total intangible assets

$

664,000

Schedule of Business Acquisition, Pro Forma Information

The pro forma results below eliminate intercompany transactions, include amortization charges for acquired intangible assets, and estimates of interest expense based upon our total estimated borrowings, eliminate pre-acquisition transaction costs and reflect corresponding changes in our provision for income taxes. Acquisition related costs incurred by Maximus, VES and Attain have been excluded in the following pro forma results. These costs were $8.8 million, $52.2 million and $0.3 million, respectively.

						Unaudited pro forma results
						Three Months Ended June 30,												Nine Months Ended June 30,												Trailing Twelve Months Ended June 30,
(in thousands, except per share amounts)						2021						2020						2021						2020						2021
Revenue						$	1,335,780					$	996,462					$	3,566,466					$	2,934,920					$	4,645,540
Cost of revenue						1,004,523						787,189						2,679,170						2,283,589						3,503,074
Gross profit						331,257						209,273						887,296						651,331						1,142,466
Selling, general, and administrative expenses						151,321						110,754						425,062						360,370						551,143
Amortization of intangible assets						21,301						25,090						63,856						75,868						88,586
Operating income						158,635						73,429						398,378						215,093						502,737
Interest expense						8,701						9,423						26,715						28,528						36,426
Other (expense)/income, net						(7,320)						(2,126)						(10,401)						(11,755)						(11,437)
Income before income taxes						142,614						61,880						361,262						174,810						454,874
Provision for income taxes						37,123						15,549						94,735						38,897						120,248
Net income						$	105,491					$	46,331					$	266,527					$	135,913					$	334,626
Basic earnings per share						$	1.70					$	0.75					$	4.30					$	2.14					$	5.40
Diluted earnings per share						$	1.69					$	0.75					$	4.28					$	2.13					$	5.37
Dividends declared per share						$	0.28					$	0.28					$	0.84					$	0.84					$	1.12
Weighted average shares outstanding:
Basic						62,064						61,882						62,028						63,463						62,001
Diluted						62,453						62,102						62,300						63,666						62,285

Schedule of Goodwill

Changes in goodwill for the nine months ended June 30, 2021, were as follows:

(in thousands)						U.S. Services						U.S. Federal Services						Outside the U.S						Total
Balance as of September 30, 2020						$	164,472					$	381,719					$	46,938					$	593,129
Estimated effects of acquisitions						—						1,161,300						623						1,161,923
Foreign currency translation						—						—						2,743						2,743
Balance as of June 30, 2021						$	164,472					$	1,543,019					$	50,304					$	1,757,795

Schedule of Finite-Lived Intangible Assets

The following table sets forth the components of intangible assets (in thousands):

						As of June 30, 2021																		As of September 30, 2020
(in thousands)						Cost						Accumulated Amortization						Intangible Assets, net						Cost						Accumulated Amortization						Intangible Assets, net
Customer contracts and relationships						$	921,023					$	112,546					$	808,477					$	235,287					$	90,302					$	144,985
VES Provider network						57,000						396						56,604						—						—						—
Technology-based intangible assets						32,400						4,994						27,406						5,631						4,723						908
Trademarks and trade names						4,516						4,516						—						4,479						4,479						—
Total						$	1,014,939					$	122,452					$	892,487					$	245,397					$	99,504					$	145,893

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense for the next five years for the intangible assets held by the Company as of June 30, 2021 is shown below. As noted above, we have not yet completed our assessment of the valuation of the intangible assets acquired with VES and Attain. These future amortization expenses represent our best estimate of future costs.

(In thousands)						Estimated Future Amortization Expense
Year ended September 30, 2021, Remainder of year						$	20,518
Year ended September 30, 2022						82,025
Year ended September 30, 2023						82,009
Year ended September 30, 2024						81,885
Year ended September 30, 2025						81,678
Year ended September 30, 2026						81,551

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

+ Details

Name:	us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the characteristics, including initial carrying value, residual amount, weighted average useful life, of finite-lived intangible assets acquired during the period by major class. A major class is composed of intangible assets that can be grouped together because they are similar, either by nature or by their use in the operations of the company.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275

+ Details

Name:	us-gaap_ScheduleOfAcquiredFiniteLivedIntangibleAssetsByMajorClassTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets, excluding financial assets and goodwill, lacking physical substance with a finite life, by either major class or business segment.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275

+ Details

Name:	us-gaap_ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: 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 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

+ Details

Name:	us-gaap_ScheduleOfGoodwillTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123413009&loc=d3e4845-128472

+ Details

Name:	us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amount of amortization expense expected to be recorded in succeeding fiscal years for finite-lived intangible assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275

+ Details

Name:	us-gaap_ScheduleofFiniteLivedIntangibleAssetsFutureAmortizationExpenseTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration