Supplemental disclosures |
3 Months Ended |
|---|---|
Dec. 31, 2018 | |
| Supplemental Cash Flow Elements [Abstract] | |
| Supplemental Disclosures |
Supplemental Disclosures
Under a resolution adopted in June 2018, the Board of Directors authorized the purchase, at management's discretion, of up to an aggregate of $200 million of our common stock. During the three months ended December 31, 2018, we purchased approximately 650,000 of our common shares at a cost of $41.3 million. During the three months ended December 31, 2017, we acquired approximately 17,000 common shares at a cost of $1.0 million. At December 31, 2018, $151.5 million remained available for future stock purchases. Since December 31, 2018, we have acquired an additional 61,900 common shares at a cost of $4.1 million, leaving $147.4 million available for future purchases.
During the three months ended December 31, 2018, we granted 330,000 RSUs to our employees. These awards will vest ratably over five years.
Our deferred compensation plan uses both mutual fund and life insurance investments to fund its obligations. The mutual funds are recorded at fair value, based upon quoted prices in active markets, and the life insurance investments at cash surrender value; changes in value are reported in the Consolidated Statement of Operations. At December 31, 2018, the deferred compensation plan held $18.0 million of the mutual fund investments.
The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other amounts included within current assets and liabilities that meet the definition of a financial instrument are shown at values equivalent to fair value due to the short-term nature of these items. Our accounts receivable - billed and billable balance includes both amounts invoiced and amounts that are ready to be invoiced where the funds are collectible within standard invoice terms. Our accounts receivable - unbilled balance includes balances where revenue has been earned but no invoice was issued on or before December 31, 2018.
As noted above, we utilized our credit facility in November 2018 to fund part of the citizen engagement centers acquisition. During the three months ended December 31, 2018 and 2017, we made interest payments of $0.2 million and less than $0.1 million, respectively. At December 31, 2018, we had borrowings of $120.0 million outstanding on the facility.
Litigation
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 alleged 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 Service project for the U.K. Department for Work and Pensions from the period of October 20, 2014, through February 3, 2016. In August 2018, the defendants’ motion to dismiss the case was granted, and the case was dismissed. In October 2018, the plaintiffs filed a notice of appeal to the U.S. Circuit Court for the Fourth Circuit. That appeal is pending. At this time, it is not possible to reasonably predict whether this matter will be permitted to proceed as a class or to reasonably estimate the value of the claims asserted, and we are unable to estimate the potential loss or range of loss.
A state Medicaid agency has been notified of two proposed disallowances by the Centers for Medicare and Medicaid Services (CMS) totaling approximately $31 million. From 2004 through 2009, we had a contract with the state agency in support of its school-based Medicaid claims. We entered into separate agreements with the school districts under which we assisted the districts with preparing and submitting claims to the state Medicaid agency which, in turn, submitted claims for reimbursement to CMS. The state has asserted that its agreement with us requires us to reimburse the state for the amounts owed to CMS. However, our agreements with the school districts require them to reimburse us for such amounts, and therefore we believe the school districts are responsible for any amounts that ultimately must be refunded to CMS. Although it is reasonably possible that a court could conclude we are responsible for the full balance of the disallowances, we believe our exposure in this matter is limited to our fees associated with this work and that the school districts will be responsible for the remainder. We have established a reserve to cover our estimated fees earned from this engagement relating to the disallowances. We exited the federal healthcare-claiming business in 2009 and no longer provide the services at issue in this matter. No legal action has been initiated against us.
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