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

Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2011

Components of income from continuing operations before income taxes

	Year ended September 30,
	2011		2010		2009
Income from continuing operations before income taxes:
United States	$	66,842	$	66,162	$	77,718
Foreign	59,054		42,160		11,016
Income from continuing operations before income taxes	$	125,896	$	108,322	$	88,734

Provision for income taxes

	Year ended September 30,
	2011			2010			2009
Current provision:
Federal	20,090			$	23,712		$	5,013
State and local	4,484			5,197			1,143
Foreign	17,422			13,188			2,266
Total current provision	41,996			42,097			8,422
Deferred tax expense (benefit):
Federal	$	1,572		$	(1,678	)	$	21,203
State and local	397			(278		)	4,534
Foreign	(211		)	(1,216		)	734
Total deferred tax expense (benefit)	1,758			(3,172		)	26,471
Income tax expense	$	43,754		$	38,925		$	34,893

Schedule of reconciliation of actual provision for income taxes and provision for income taxes resulted from the use of the federal statutory income tax

	Year ended September 30,
	2011			2010			2009
Federal income tax provision at statutory rate of 35%	$	44,063		$	37,913		$	31,057
Valuation allowance on net operating loss carryforwards	(16		)	(33		)	(330		)
Permanent items	314			1,263			512
State income taxes, net of federal benefit	3,175			3,153			3,811
Foreign taxes	(3,644		)	(2,177		)	(518		)
Other	(138		)	(1,194		)	361
Income tax expense	$	43,754		$	38,925		$	34,893

Significant items comprising the Company's deferred tax assets and liabilities

	As of September 30,
	2011			2010
Deferred tax assetscurrent:
Costs deductible in future periods	$	9,315		$	8,060
Deferred revenue	12,675			13,177
Total deferred tax assetscurrent	21,990			21,237
Deferred tax liabilitiescurrent:
Accounts receivableunbilled	2,734			6,701
Other				1,246
Total deferred tax liabilitiescurrent:	2,734			7,947
Net deferred tax assetcurrent	$	19,256		$	13,290
Deferred tax assetsnon-current:
Non-cash equity compensation	$	4,012		$	4,852
Costs deductible in future periods	2,567			5,093
Net operating loss carryforwards	1,028			1,079
Valuation allowance on net operating loss carryforwards	(1,028		)	(1,079		)
Deferred contract costs	101			464
Other	1,167
Total deferred tax assetsnon-current	7,847			10,409
Total deferred tax liabilitiesnon-current
Amortization of goodwill and intangible assets	3,976			2,228
Property and equipment	10,767			6,723
Capitalized software	4,237			4,332
Other	80			228
Total deferred tax liabilitynon-current	$	19,060		$	13,511
Net deferred tax liabilitynon-current	$	11,213		$	3,102

Components of noncurrent deferred tax assets (liabilities)

	As of September 30,
	2011			2010
Long-term assets	$	732		$	1,844
Long-term liabilities	11,945			4,946
Net deferred tax liabilitynon-current	$	(11,213	)	$	(3,102	)

Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits

	Year Ended September 30
	2011			2010			2009
Balance at beginning of year	$	1,553		$	2,045		$	2,291
Additions based on tax positions related to the current year				45
Reductions for tax positions of prior years				(196		)
Lapse of statute of limitations	(381		)				(68		)
Settlements				(341		)	(178		)
Balance at end of year	$	1,172		$	1,553		$	2,045

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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