Maximus, Inc. Annual report pursuant to Section 13 and 15(d)

Business combinations (Tables)

12 Months Ended

Sep. 30, 2014

HML

The assets and liabilities of HML recorded in our financial statements at the acquisition date are summarized below (in thousands):

	Updated through September 30, 2013		Adjustments			Updated through September 30, 2014
Cash consideration, net of cash acquired	$	71,435	$	—		$	71,435
Stock consideration		6,425		—			6,425

Purchase consideration, net of cash acquired	$	77,860	$	—		$	77,860


Accounts receivable and unbilled receivables	$	7,671	$	—		$	7,671
Other current assets		1,382		—			1,382
Property and equipment		2,752		—			2,752
Intangible assets		20,542		—			20,542

Total identifiable assets acquired		32,347		—			32,347

Accounts payable and other liabilities		6,228		—			6,228
Deferred revenue		1,149		—			1,149
Current income tax liability		612		144			756
Deferred tax liability		4,814		(113	)		4,701

Total liabilities assumed		12,803		31			12,834

Net identifiable assets acquired		19,544		(31	)		19,513
Goodwill		58,316		31			58,347

Net assets acquired	$	77,860	$	—		$	77,860

The valuation of the intangible assets acquired is summarized below (in thousands).

	Useful life	Fair value
Customer relationships	20 years	$	19,933
Technology-based intangible assets	2 years		609

Total intangible assets		$	20,542

Policy Studies, Inc

The final valuation of the assets and liabilities acquired was as follows (in thousands):

Accounts receivable and unbilled receivables	$	23,017
Other current assets		9,527
Deferred income taxes		2,129
Property and equipment		6,411
Other assets		1,332
Intangible assets		22,183

Total identifiable assets acquired		64,599
Accounts payable and other liabilities		20,666
Deferred revenue		19,775

Total liabilities assumed		40,441

Net identifiable assets acquired		24,158
Goodwill—Health Services Segment		19,963
Goodwill—Human Services Segment		19,327

Net assets acquired	$	63,448

DeltaWare

The effect on the financial statements is summarized below (in thousands):

	Contingent consideration
Balance at September 30, 2013	$	388
Foreign currency translation		(30	)

Balance at September 30, 2014	$	358