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Acquisitions | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Acquisitions | Acquisitions Intersys Acquisition On October 17, 2019, the Company acquired all of the membership interests of Intersys Consulting, LLC ("Intersys"), headquartered in Austin, Texas, for $67.0 million in cash. The acquisition expands the Company's capabilities in digital innovation and enterprise solutions and it is part of the Apex Segment. Goodwill associated with this acquisition totaled $41.4 million, of which $38.7 million is deductible for income tax purposes. Identifiable intangible assets related to this acquisition totaled $23.8 million and the weighted-average amortization period for identifiable intangible assets is approximately 9 years. The results of operations of Intersys are included in the consolidated results of the Company from the date of its acquisition. The purchase accounting for the acquisition of Intersys remains incomplete with respect to the provisional fair value of assets acquired and liabilities assumed, as management continues to gather and evaluate information about circumstances that existed as of the acquisition date. Measurement period adjustments will be recognized prospectively within 12 months from the date of acquisition. DHA Acquisition On January 25, 2019, the Company acquired all of the outstanding shares of DHA Group, Inc. ("DHA"), headquartered in Washington, D.C., for $46.0 million in cash. DHA is a provider of mobility, cybersecurity, cloud and IT services to the Federal Bureau of Investigation and other federal customers. DHA was acquired to expand the Company's government services and is part of the ECS segment. Goodwill associated with this acquisition totaled $24.7 million, which is deductible for income tax purposes. Identifiable intangible assets related to this acquisition totaled $19.0 million and the weighted-average amortization period for identifiable intangible assets is approximately 9 years. The results of operations of DHA are included in the consolidated results of the Company from the date of its acquisition. The purchase accounting for this acquisition has been finalized. ECS Acquisition On April 2, 2018, the Company acquired all of the outstanding equity interests of ECS Federal, LLC ("ECS") for $775.0 million. Acquisition expenses were approximately $12.0 million and were included in SG&A expenses. ECS, which is headquartered in Fairfax, Virginia, is a leading provider of government IT services and solutions. The ECS acquisition allows the Company to compete in the federal IT and professional services sector. ECS is reported as a separate segment of the Company. The results of operations of ECS are included in the consolidated results of the Company from the date of its acquisition. The consolidated statements of operations and comprehensive income for the year ended December 31, 2018 included revenues from ECS of $493.0 million and income before income taxes of $14.2 million, respectively. Assets and liabilities of all acquired companies are recorded at their estimated fair values at the dates of acquisition. The fair value assigned to identifiable intangible assets was primarily determined using a discounted cash flow method, which is a non-recurring fair value measurement based on unobservable inputs (Level 3 inputs). Goodwill represents the acquired assembled workforce, potential new customers and future cash flows after the acquisition. Goodwill related to this acquisition totaled $528.2 million, of which $514.2 million is estimated to be deductible for income tax purposes. Preliminary fair values of assets acquired and liabilities assumed have been updated for working capital adjustments, deferred taxes and completion of the valuation of identifiable intangible assets. The purchase accounting for this acquisition has been finalized. The following table summarizes the consideration paid and the fair value of assets acquired and liabilities assumed (in millions):
Cash |  | $ | 12.4 |
Accounts receivable |  | 97.2 |
Prepaid expenses and other current assets |  | 8.6 |
Property and equipment |  | 29.0 |
Identifiable intangible assets |  | 195.0 |
Goodwill |  | 528.2 |
Other non-current assets |  | 1.2 |
Total assets acquired |  | 871.6 |
Current liabilities |  | 94.7 |
Long-term liabilities |  | 4.3 |
Total liabilities assumed |  | 99.0 |
Total purchase price |  | $ | 772.6 |
The following table summarizes the acquired identifiable intangible assets of ECS (in millions):
| Useful life |  |
Contractual customer relationships | 12.75 years |  | $ | 144.6 |
Backlog | 2.75 years |  | 23.1 |
Non-compete agreements | 4 to 7 years |  | 10.3 |
Favorable contracts | 5 years |  | 0.5 |
Trademarks | indefinite |  | 16.5 |
Total identifiable intangible assets acquired |  |  | $ | 195.0 |
The weighted-average amortization period for identifiable intangible assets, excluding trademark, is 11 years. The summary below (in millions, except for per share data) presents pro forma unaudited consolidated results of operations for the years ended December 31, 2018 and 2017 as if the acquisition of ECS by the Company and the acquisition of a business by ECS in April 2017, both occurred on January 1, 2017. The pro forma unaudited consolidated results give effect to, among other things: (i) amortization of intangible assets, (ii) stock-based compensation expense and the related dilution for restricted stock units granted to ECS employees, (iii) interest expense on acquisition-related debt and (iv) the exclusion of nonrecurring expenses incurred by ECS prior to its acquisition by the Company for ECS’ acquisition-related activities and costs incurred in the sale of ECS to the Company. The pro forma results do not include pre-acquisition results of DHA or Intersys due to their size. The pro forma unaudited consolidated results are not necessarily indicative of the operating results that would have occurred if the acquisition had been consummated as of the date indicated, nor are they necessarily indicative of future operating results.
|  | 2018 |  | 2017
Revenues |  | $ | 3,548.9 |  |  | $ | 3,213.5 |
Income from continuing operations |  | $ | 169.6 |  |  | $ | 134.8 |
Net income |  | $ | 169.3 |  |  | $ | 134.6 |
Earnings per share: |  |  |  |
Basic |  | $ | 3.24 |  |  | $ | 2.57 |
Diluted |  | $ | 3.19 |  |  | $ | 2.53 |
Number of shares and share equivalents used to calculate earnings per share: |  |  |  |
Basic |  | 52.4 |  |  | 52.5 |
Diluted |  | 53.2 |  |  | 53.2 |

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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