Annual report pursuant to Section 13 and 15(d)

Business Combinations (Tables)

v3.21.2
Business Combinations (Tables)
 12 Months Ended
Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
Table 6.1: VES Valuation
Initial Allocation of Assets and Liabilities Adjustments Estimated Allocation
of Assets
and Liabilities as of
September 30, 2021
(in thousands)
Consideration paid:
Cash consideration paid, net of cash acquired $ 1,360,231  $ —  $ 1,360,231 
Estimated additional cash payments 7,494  (2,859) 4,635 
Estimated cash consideration, net of cash acquired 1,367,725  (2,859) 1,364,866 
Assets acquired:
Accounts receivable - billed, billable and unbilled $ 44,078  $ —  $ 44,078 
Prepaid expenses and other current assets 13,911  (5,956) 7,955 
Property and equipment, net 9,113  —  9,113 
Operating lease right-of-use assets 18,898  —  18,898 
Intangible assets 664,000  —  664,000 
Other assets 12,816  (5,650) 7,166 
Total identifiable assets acquired 762,816  (11,606) 751,210 
Liabilities assumed:
Accounts payable and accrued compensation 42,978  (796) 42,182 
Operating lease liabilities 18,898  —  18,898 
Income taxes payable, current 6,196  (523) 5,673 
Deferred income taxes 177,626  (6,129) 171,497 
Other long-term liabilities 6,667  5,603  12,270 
Total identifiable liabilities assumed 252,365  (1,845) 250,520 
Net identifiable assets acquired 510,451  (9,761) 500,690 
Goodwill 857,274  6,902  864,176 
Net assets acquired $ 1,367,725  $ (2,859) $ 1,364,866 
Table 6.3: Attain Valuation
Allocation of Assets and Liabilities
(in thousands)
Consideration paid:
Cash consideration paid, net of cash acquired $ 419,097 
Assets acquired:
Accounts receivable - billed, billable and unbilled 39,375 
Prepaid expenses and other current assets 926 
Operating lease right-of-use assets 24,960 
Intangible assets 105,000 
Other assets 74 
Total identifiable assets acquired 170,335 
Liabilities assumed:
Accounts payable and other liabilities 28,863 
Operating lease liabilities, less current portion 26,401 
Total identifiable liabilities assumed 55,264 
Net identifiable assets acquired 115,071 
Goodwill 304,026 
Net assets acquired $ 419,097 
Schedule of Acquired Finite-Lived Intangible Assets Weighted Average Remaining Lives
Table 6.2: VES Intangible Asset Values and Useful Lives
Estimated Straight-Line Useful Life Estimated Fair Value
(in thousands)
Customer contracts and relationships 12 years $ 580,000 
Provider network 12 years 57,000 
Technology-based intangible assets 12 years 27,000 
Total intangible assets $ 664,000 
Schedule of Business Acquisition, Pro Forma Information The pro forma results below eliminate intercompany transactions, include amortization charges for acquired intangible assets, and estimates of interest expense based upon our total estimated borrowings, eliminate pre-acquisition transaction costs, and reflect corresponding changes in our provision for income taxes. Acquisition related costs incurred by Maximus, VES, and Attain have been excluded in the following pro forma results. These costs were $9.5 million, $52.2 million, and $0.3 million, respectively.
Table 6.4: Unaudited Pro Forma Results - As if both VES and Attain Acquisitions Occurred on October 1, 2019
For the Year Ended September 30,
2021 2020
(in thousands, except per share amounts)
Revenue $ 4,672,597  $ 4,013,994 
Cost of revenue 3,566,894  3,107,493 
Gross profit 1,105,703  906,501 
Selling, general, and administrative expenses 553,048  485,903 
Amortization of intangible assets 85,621  101,467 
Operating income 467,034  319,131 
Interest expense (37,410) (38,239)
Other expense, net (2,414) (12,791)
Income before income taxes 427,210  268,101 
Provision for income taxes 102,045  64,328 
Net income $ 325,165  $ 203,773 
Earnings per share:
Basic $ 5.24  $ 3.23 
Diluted $ 5.21  $ 3.22 
Weighted average shares outstanding:
Basic 62,072  63,062 
Diluted 62,365  63,322