Business Segments (Tables)

9 Months Ended

Jun. 30, 2023

Schedule of Financial Information for each of the Company's Business Segments


Table 3: Results of Operation by Business Segment
	For the Three Months Ended								For the Nine Months Ended
	June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
	Amount		% (1)		Amount		% (1)		Amount		% (1)		Amount		% (1)
	(dollars in thousands)
Revenue:
U.S. Federal Services	$	583,960			$	525,519			$	1,786,202			$	1,680,678
U.S. Services	449,061				399,320				1,338,242				1,183,814
Outside the U.S.	155,656				200,946				520,331				589,495
Revenue	$	1,188,677			$	1,125,785			$	3,644,775			$	3,453,987
Gross profit:
U.S. Federal Services	$	156,945	26.9	%	$	124,203	23.6	%	$	402,513	22.5	%	$	365,932	21.8	%
U.S. Services	98,538		21.9	%	74,135		18.6	%	268,152		20.0	%	248,805		21.0	%
Outside the U.S.	8,881		5.7	%	11,883		5.9	%	67,049		12.9	%	52,090		8.8	%
Gross profit	$	264,364	22.2	%	$	210,221	18.7	%	$	737,714	20.2	%	$	666,827	19.3	%
Selling, general, and administrative expenses:
U.S. Federal Services	$	82,892	14.2	%	$	69,466	13.2	%	$	229,591	12.9	%	$	203,340	12.1	%
U.S. Services	51,536		11.5	%	42,351		10.6	%	140,793		10.5	%	115,726		9.8	%
Outside the U.S.	24,122		15.5	%	23,101		11.5	%	75,936		14.6	%	68,452		11.6	%

Loss on sale of businesses (2)	—		NM		—		NM		883		NM		—		NM
Other (3)	23,995		NM		(1,944)		NM		24,242		NM		(16)		NM
Selling, general, and administrative expenses	$	182,545	15.4	%	$	132,974	11.8	%	$	471,445	12.9	%	$	387,502	11.2	%
Operating income/(loss):
U.S. Federal Services	$	74,053	12.7	%	$	54,737	10.4	%	$	172,922	9.7	%	$	162,592	9.7	%
U.S. Services	47,002		10.5	%	31,784		8.0	%	127,359		9.5	%	133,079		11.2	%
Outside the U.S.	(15,241)		(9.8)	%	(11,218)		(5.6)	%	(8,887)		(1.7)	%	(16,362)		(2.8)	%
Amortization of intangible assets	(23,431)		NM		(22,690)		NM		(70,599)		NM		(67,951)		NM

Loss on sale of businesses (2)	—		NM		—		NM		(883)		NM		—		NM
Other (3)	(23,995)		NM		1,944		NM		(24,242)		NM		16		NM
Operating income	$	58,388	4.9	%	$	54,557	4.8	%	$	195,670	5.4	%	$	211,374	6.1	%

(1)Percentage of respective segment revenue. Percentages not considered meaningful are marked "NM."

(2)During the second quarter of fiscal year 2023, we sold a small commercial practice in the United Kingdom and our employment operations business in Sweden, both subsidiaries within our Outside the U.S. Segment, resulting in a loss. Refer to "Note 7. Divestitures" for more details.

(3)Other includes credits and costs that are not allocated to a particular segment. In the three and nine months ended June 30, 2023, these charges include $22.1 million related to the costs of a previously disclosed cybersecurity incident. Other charges include those related to acquisitions.