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

Annual report pursuant to Section 13 and 15(d)

Goodwill and intangible assets

Goodwill and intangible assets

12 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in goodwill for the years ended September 30, 2017 and 2016 are as follows (in thousands):



	Health Services			U.S. Federal Services		Human Services			Total
Balance as of September 30, 2015	$	113,427		$	220,524	$	42,351		$	376,302
Acquisitions of Ascend and Assessments Australia, respectively	18,554			—		2,899			21,453
Adjustment to goodwill acquired with Acentia	—			7,624		—			7,624
Disposal of K-12 Education business	—			—		(224		)	(224		)
Foreign currency translation	(8,302		)	—		705			(7,597		)
Balance as of September 30, 2016	123,679			228,148		45,731			397,558
Adjustment to goodwill acquired with Ascend	(557		)	—		—			(557		)
Adjustment to goodwill acquired with Assessments Australia	—			—		71			71
Acquisition of Revitalised	2,830			—		—			2,830
Foreign currency translation	2,508			—		566			3,074
Balance as of September 30, 2017	$	128,460		$	228,148	$	46,368		$	402,976

There have been no impairment charges to our goodwill.

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



	As of September 30, 2017						As of September 30, 2016
	Cost		Accumulated Amortization		Intangible Assets, net		Cost		Accumulated Amortization		Intangible Assets, net
Customer contracts and relationships	$	129,916	$	33,457	$	96,459	$	132,221	$	26,238	$	105,983
Technology-based intangible assets	7,664		5,475		2,189		6,967		4,613		2,354
Trademarks and trade names	4,513		4,392		121		4,487		3,797		690
Total	$	142,093	$	43,324	$	98,769	$	143,675	$	34,648	$	109,027

Our intangible assets have a weighted average remaining life of 12.5 years, comprising 12.7 years for customer contracts and relationships, 5.2 years for technology-based intangible assets and 2.3 years for trademarks and trade names. Estimated future amortization expense is estimated for the following five fiscal years ending September 30th as follows (in thousands):



2018	$	10,320
2019	9,416
2020	8,316
2021	7,452
2022	7,385

- 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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