XML 21 R11.htm IDEA: XBRL DOCUMENT v3.22.2
Business Segments
 9 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
We conduct our operations through three business segments: U.S. Services, U.S. Federal Services, and Outside the U.S.
U.S. Services
Our U.S. Services Segment provides a variety of business process services ("BPS") such as program administration, appeals and assessments, 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. Addressing societal macro trends such as aging populations and rising costs, the segment continues to execute on its clinical evolution strategy by expanding its clinical offerings. This includes assessments to determine whether personal care services are medically necessary and public health offerings such as contact tracing, disease investigation, and vaccine distribution support services as part of the governments' COVID-19 response efforts.
U.S. Federal Services
From technology solutions to program administration and operations, our U.S. Federal Services Segment delivers end-to-end solutions that help various U.S. federal government agencies better deliver on their mission. This also includes appeals and assessments services, system and application development, IT modernization, and maintenance services. The segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio which continues to be managed within this segment. Benefiting from the Maximus Federal Consulting (formerly Attain Federal) platform, the segment executes on its digital strategy to deliver technology solutions that advance agency missions, including the challenge to modernize, provide better customer experience, and drive process efficiencies. The segment continues to expand its clinical solutions with the acquisition of VES Group, Inc., which manages the clinical evaluation process for U.S. veterans and service members on behalf of the U.S. Department of Veterans Affairs. The segment further supports clinical offerings in public health with new work supporting the U.S. federal government's COVID-19 response efforts. This included expanded work with the Centers for Disease Control and Prevention ("CDC") for their helpline 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.
Outside the U.S.
Our Outside the U.S. Segment provides BPS for international governments and commercial clients, transforming the lives of people around the world. Helping people find employment, access vital support, and remain healthy, these services include health and disability assessments, program administration for employment services, wellbeing solutions, and other job seeker related services. We support programs and deliver services in the U.K., including the Health Assessment Advisory Service ("HAAS") and Restart; Australia, including Workforce Australia 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.
Table 3: Results of Operation by Business Segment
For the Three Months EndedFor the Nine Months Ended
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Amount% (1)Amount% (1)Amount% (1)Amount% (1)
(dollars in thousands)
Revenue:
U.S. Services$399,320 $436,338 $1,183,814 $1,269,487 
U.S. Federal Services525,519 617,601 1,680,678 1,352,982 
Outside the U.S.200,946 189,581 589,495 525,885 
Revenue$1,125,785 $1,243,520 $3,453,987 $3,148,354 
Gross profit:
U.S. Services$74,135 18.6 %$104,814 24.0 %$248,805 21.0 %$323,256 25.5 %
U.S. Federal Services124,203 23.6 %155,776 25.2 %365,932 21.8 %312,405 23.1 %
Outside the U.S.11,883 5.9 %31,266 16.5 %52,090 8.8 %92,908 17.7 %
Gross profit$210,221 18.7 %$291,856 23.5 %$666,827 19.3 %$728,569 23.1 %
Selling, general, and administrative expenses:
U.S. Services$42,351 10.6 %$42,606 9.8 %$115,726 9.8 %$116,655 9.2 %
U.S. Federal Services69,466 13.2 %69,647 11.3 %203,340 12.1 %172,877 12.8 %
Outside the U.S.23,101 11.5 %22,973 12.1 %68,452 11.6 %65,018 12.4 %
Other (2) (1,944)NM4,903 NM(16)NM9,948 NM
Selling, general, and administrative expenses$132,974 11.8 %$140,129 11.3 %$387,502 11.2 %$364,498 11.6 %
Operating income/(loss):
U.S. Services$31,784 8.0 %$62,208 14.3 %$133,079 11.2 %$206,601 16.3 %
U.S. Federal Services54,737 10.4 %86,129 13.9 %162,592 9.7 %139,528 10.3 %
Outside the U.S.(11,218)(5.6) %8,293 4.4 %(16,362)(2.8) %27,890 5.3 %
Amortization of intangible assets(22,690)NM(12,132)NM(67,951)NM(23,718)NM
Other (2)1,944 NM(4,903)NM16 NM(9,948)NM
Operating income$54,557 4.8 %$139,595 11.2 %$211,374 6.1 %$340,353 10.8 %
(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."
(2)Other selling, general, and administrative expenses includes costs that are not allocated to a particular segment. This includes legal expenses and settlements and expenses incurred as part of our acquisitions, as well as potential acquisitions which have not been or may not be completed. Our results for the three and nine months ended June 30, 2022 included a $2.3 million credit related to changes in acquisition related contingent consideration. See "Note 6. Business Combinations" for more information.