Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.19.2
Segment Information (Tables)
 9 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Schedule of financial information for each of the Company's business segments
The table below provides certain financial information for each of our business segments.
As noted in "Note 1. Organization and Basis of Presentation," we made changes to our business segments in fiscal year 2019. Accordingly, the comparative results shown for the three and nine months ended June 30, 2018, are presented differently from those shown in previous filings.
From October 1, 2018, we operated our business through three segments.
•Our U.S. Health and Human Services Segment provides a variety of business process services such as program administration, appeals and assessments work, and related consulting work for U.S. state and local government programs. These services support a variety of programs including Medicaid, the Children’s Health Insurance Program, the Affordable Care Act and Temporary Assistance for Needy Families.
•Our U.S. Federal Services Segment provides business process solutions, including program administration, appeals and assessment services, as well as system and software development and maintenance services for various U.S. federal civilian programs. This segment also contains certain state-based assessments and appeals work that is part of the segment's heritage within the Medicare Appeals portfolio and continues to be managed within this segment.
•Our Outside the U.S. Segment provides business process solutions for governments and commercial clients outside the U.S., including health and disability assessments, program administration for welfare-to-work services and other related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service, the Work & Health Programme and Fair Start; Australia, including jobactive and the Disability Employment Service; Canada, including Health Insurance British Columbia and the Employment Program of British Columbia; Saudi Arabia and Singapore.
  Three Months Ended June 30, Nine Months Ended June 30,
(dollars in thousands) 2019  % (1) 2018  % (1) 2019  % (1) 2018  % (1)
Revenue:                
U.S. Health & Human Services $ 291,132  $ 314,477  $ 876,082  $ 924,967 
U.S. Federal Services 292,295  112,226  799,018  361,536 
Outside the U.S. 147,283  171,152  456,749  547,287 
Total $ 730,710  $ 597,855  $ 2,131,849  $ 1,833,790 
Gross profit:                
U.S. Health & Human Services $ 86,664  29.8%    $ 101,425  32.3%    $ 260,955  29.8%    $ 272,242  29.4%   
U.S. Federal Services 66,803  22.9%    32,276  28.8%    175,484  22.0%    93,008  25.7%   
Outside the U.S. 20,780  14.1%    20,983  12.3%    66,495  14.6%    90,197  16.5%   
Total $ 174,247  23.8%    $ 154,684  25.9%    $ 502,934  23.6%    $ 455,447  24.8%   
Selling, general & administrative expense:                
U.S. Health & Human Services $ 32,414  11.1%    $ 34,382  10.9%    $ 93,953  10.7%    $ 105,803  11.4%   
U.S. Federal Services 32,896  11.3%    17,399  15.5%    90,632  11.3%    51,587  14.3%   
Outside the U.S. 15,791  10.7%    16,775  9.8%    52,591  11.5%    53,284  9.7%   
Restructuring costs —  NM —  NM —  NM 2,320  NM
Other 503  NM 1,032  NM 2,201  NM 1,032  NM
Total $ 81,604  11.2%    $ 69,588  11.6%    $ 239,377  11.2%    $ 214,026  11.7%   
Operating income:                
U.S. Health & Human Services $ 54,250  18.6%    $ 67,043  21.3%    $ 167,002  19.1%    $ 166,439  18.0%   
U.S. Federal Services 33,907  11.6%    14,877  13.3%    84,852  10.6%    41,421  11.5%   
Outside the U.S. 4,989  3.4%    4,208  2.5%    13,904  3.0%    36,913  6.7%   
Amortization of intangible assets (9,049) NM (2,525) NM (24,026) NM (7,846) NM
Restructuring costs (2) —  NM —  NM —  NM (2,320) NM
Other (3) (503) NM (1,032) NM (2,201) NM (1,032) NM
Total $ 83,594  11.4%    $ 82,571  13.8%    $ 239,531  11.2%    $ 233,575  12.7%   

(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.”
(2) During fiscal year 2018, we incurred costs in restructuring our United Kingdom business.
(3) Other selling, general & administrative expenses includes credits and costs not directly allocated to a particular segment. In the nine month periods ended June 30, 2019, these include $2.7 million of costs directly related to the acquisition of the citizen engagement centers business. Refer to "Note 5. Acquisition of Citizen Engagement Centers Business" for more details.
Schedule of identifiable assets by segment
Identifiable assets for the segments are shown below (in thousands):
June 30, 2019 September 30, 2018
U.S. Health & Human Services $ 456,293  $ 442,063 
U.S. Federal Services 877,263  375,807 
Outside the U.S. 212,959  184,872 
Corporate 144,391  459,258 
Total $ 1,690,906  $ 1,462,000