| Business segments |
Business segments
We have three business segments, Health Services, U.S. Federal Services and Human Services. These segments reflect the way in which we organize and manage the business and is consistent with the manner in which our Chief Executive Officer operates and reviews the results of the business.
Expenses which are not specifically included in the segments are included in other categories, including amortization of intangible assets, costs incurred in restructuring our U.K. Human Services business, the direct costs of acquisitions and the gain on sale of the K-12 Education business. These costs are excluded from measuring each segment's operating performance.
The results of these segments for the three years ended September 30, 2017 are shown below (in thousands).
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Year ended September 30, |
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2017 |
|
2016 |
|
2015 |
Revenue: |
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Health Services |
$ |
1,380,151 |
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$ |
1,298,304 |
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$ |
1,109,238 |
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U.S. Federal Services |
545,573 |
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|
591,728 |
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|
502,484 |
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Human Services |
525,237 |
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|
513,328 |
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|
488,099 |
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Total |
$ |
2,450,961 |
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$ |
2,403,360 |
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$ |
2,099,821 |
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Gross Profit: |
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Health Services |
$ |
347,325 |
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$ |
292,181 |
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$ |
254,108 |
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U.S. Federal Services |
139,321 |
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|
138,168 |
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|
118,646 |
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Human Services |
125,259 |
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|
131,842 |
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|
139,963 |
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Total |
$ |
611,905 |
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$ |
562,191 |
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$ |
512,717 |
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Selling, general and administrative expense: |
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Health Services |
$ |
132,081 |
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$ |
107,155 |
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$ |
99,815 |
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U.S. Federal Services |
74,345 |
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|
74,792 |
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|
59,252 |
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Human Services |
76,675 |
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|
84,157 |
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|
79,719 |
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Other |
1,409 |
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|
2,155 |
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|
6 |
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Total |
$ |
284,510 |
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$ |
268,259 |
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|
$ |
238,792 |
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Operating income: |
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Health Services |
$ |
215,244 |
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$ |
185,026 |
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$ |
154,293 |
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U.S. Federal Services |
64,976 |
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|
63,376 |
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|
59,394 |
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Human Services |
48,584 |
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|
47,685 |
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|
60,244 |
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Amortization of intangible assets |
(12,208 |
) |
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(13,377 |
) |
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(9,348 |
) |
Restructuring costs |
(2,242 |
) |
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— |
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— |
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Acquisition-related expenses |
(83 |
) |
|
(832 |
) |
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(4,745 |
) |
Gain on sale of a business |
650 |
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|
6,880 |
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— |
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Other |
(1,409 |
) |
|
(2,155 |
) |
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(6 |
) |
Total |
$ |
313,512 |
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$ |
286,603 |
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$ |
259,832 |
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Operating income as a percentage of revenue: |
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Health Services |
15.6 |
% |
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14.3 |
% |
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13.9 |
% |
U.S. Federal Services |
11.9 |
% |
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10.7 |
% |
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11.8 |
% |
Human Services |
9.2 |
% |
|
9.3 |
% |
|
12.3 |
% |
Total |
12.8 |
% |
|
11.9 |
% |
|
12.4 |
% |
Depreciation and amortization: |
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Health Services |
$ |
29,114 |
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$ |
31,916 |
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$ |
27,694 |
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U.S. Federal Services |
11,175 |
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|
9,953 |
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|
10,363 |
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Human Services |
15,480 |
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|
16,535 |
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|
8,792 |
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Total |
$ |
55,769 |
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$ |
58,404 |
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$ |
46,849 |
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Acquisition-related expenses are costs directly incurred from the purchases of Revitalised Limited in 2017, Ascend Management Innovations, LLC (Ascend) and Assessments Australia in 2016 and Acentia, LLC (Acentia) and Remploy in 2015, as well as any unsuccessful transactions.
We principally operate in the U.S., the U.K., Australia, Canada, Saudi Arabia and Singapore.
Our revenue was distributed as follows (in thousands):
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Year ended September 30, |
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2017 |
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2016 |
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2015 |
United States |
$ |
1,765,661 |
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$ |
1,721,261 |
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$ |
1,559,769 |
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United Kingdom |
346,342 |
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|
384,649 |
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|
267,702 |
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Australia |
232,434 |
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|
200,539 |
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|
178,167 |
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Rest of World |
106,524 |
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|
96,911 |
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|
94,183 |
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Total |
$ |
2,450,961 |
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$ |
2,403,360 |
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$ |
2,099,821 |
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Identifiable assets for the segments are shown below (in thousands):
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Year Ended
September 30, |
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2017 |
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2016 |
Health Services |
$ |
515,850 |
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$ |
543,361 |
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U.S. Federal Services |
397,824 |
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|
440,006 |
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Human Services |
169,523 |
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|
153,141 |
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Corporate/Other |
267,465 |
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|
212,311 |
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Total |
$ |
1,350,662 |
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$ |
1,348,819 |
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Our long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands):
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Year Ended
September 30, |
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2017 |
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2016 |
United States |
$ |
101,530 |
|
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$ |
118,751 |
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Australia |
32,165 |
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|
38,852 |
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Canada |
13,670 |
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|
16,209 |
|
United Kingdom |
9,251 |
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|
11,086 |
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Rest of World |
331 |
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|
117 |
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Total |
$ |
156,947 |
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$ |
185,015 |
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