Maximus, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2012

Goodwill and Intangible Assets

Goodwill and Intangible Assets

10. Goodwill and Intangible Assets

The changes in goodwill for the nine months ended June 30, 2012 are as follows (in thousands):

	Health Services		Human Services		Total
Balance as of September 30, 2011	$	43,242	$	28,081	$	71,323
Acquisition of PSI	22,223		10,482		32,705
Foreign currency translation	57		612		669
Balance as of June 30, 2012	$	65,522	$	39,175	$	104,697

The following table sets forth the components of intangible assets (in thousands):

	As of June 30, 2012						As of September 30, 2011
	Cost		Accumulated Amortization		Intangible Assets, net		Cost		Accumulated Amortization		Intangible Assets, net

Customer relationships	$	20,672	$	2,326	$	18,346	$	3,454	$	1,513	$	1,941
Technology-based intangible assets	8,954		4,593		4,361		7,146		4,097		3,049
Trademark	4,524		279		4,245		620		102		518
Non-compete arrangements	244		146		98		242		99		143
Total	$	34,394	$	7,344	$	27,050	$	11,462	$	5,811	$	5,651

The intangible assets include $3.4 million of fully-amortized technology-based assets still in use by the Company. The Company’s intangible assets have a weighted average remaining life of 6.4 years, comprising 3.8 years for technology-based intangible assets, 7.3 years for customer contracts and relationships, 5.1 years for the trademark, and 1.6 years for non-compete arrangements. Amortization expense for the three and nine months ended June 30, 2012 was $0.8 million and $1.4 million. Future amortization expense is estimated as follows (in thousands):

Three months ended September 30, 2012	$	1,276
Year ended September 30, 2013	4,918
Year ended September 30, 2014	3,894
Year ended September 30, 2015	3,873
Year ended September 30, 2016	3,873
Year ended September 30, 2017	3,481
Thereafter	5,735
Total	$	27,050

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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