Annual report pursuant to Section 13 and 15(d)

Commitments and contingencies

v3.8.0.1
Commitments and contingencies
12 Months Ended
Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies
Commitments and contingencies
Performance bonds
Certain contracts require us to provide a surety bond as a guarantee of performance. At September 30, 2017, we had performance bond commitments totaling $17.7 million. These bonds are typically renewed annually and remain in place until the contractual obligations have been satisfied. Although the triggering events vary from contract to contract, in general we would only be liable for the amount of these guarantees in the event of default in our performance of our obligations under each contract, the probability of which we believe is remote.
Operating Leases
We lease office space and equipment under various operating leases. Lease expense for the years ended September 30, 2017, 2016 and 2015 was $80.6 million, $75.4 million and $67.1 million, respectively. Our operating leases may contain rent escalations or concessions. Lease expense is recorded on a straight-line basis over the life of the respective lease.
Minimum future lease commitments under leases in effect as of September 30, 2017 are as follows (in thousands):
 
Office space
 
Equipment
 
Total
Year ending September 30,
 

 
 

 
 

2018
$
65,230

 
$
4,252

 
$
69,482

2019
50,908

 
3,482

 
54,390

2020
34,159

 
2,133

 
36,292

2021
10,459

 
13

 
10,472

2022
4,198

 
2

 
4,200

Thereafter
241

 

 
241

Total minimum lease payments
$
165,195

 
$
9,882

 
$
175,077



Sublease income for the year ended September 30, 2017 was $1.2 million, and we anticipate future sublease income of $1.2 million per fiscal year through fiscal year 2020.
Collective bargaining agreements
Approximately 14% of our employees are covered by collective bargaining agreements or similar arrangements.
Shareholder lawsuit

In August 2017, the Company and certain officers were named as defendants in a putative class action lawsuit filed in the U.S. District Court for the Eastern District of Virginia. The plaintiff alleges the defendants made a variety of materially false and misleading statements, or failed to disclose material information, concerning the status of the Company’s Health Assessment Advisory Services project for the U.K. Department for Work and Pensions from the period October 20, 2014 through February 3, 2016. The defendants deny the allegations and intend to defend the matter vigorously. At this time, it is not possible to predict whether this matter will be permitted to proceed as a class or to estimate the value of the claims asserted. No assurances can be given that we will be successful in our defense of this action on the merits or otherwise. For these reasons, we are unable to estimate the potential loss or range of loss in this matter.