Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
 9 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
The table below provides certain financial information for each of our business segments. We operate 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 services, and related consulting work for U.S. state and local government programs. These services support a variety of programs including the Affordable Care Act (ACA), Medicaid and the Children’s Health Insurance Program (CHIP). We also serve as administrators in state-based welfare-to-work and child support programs.
•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, independent medical reviews, 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 and case management for employment services and other work-support programs. We deliver services in the United Kingdom, including the Health Assessment Advisory Service (HAAS), 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; Italy, Saudi Arabia, Singapore and Sweden.
  Three Months Ended June 30, Nine Months Ended June 30,
(dollars in thousands) 2020 % (1) 2019 % (1) 2020 % (1) 2019 % (1)
Revenue:        
U.S. Health & Human Services $ 336,950    $ 291,132    $ 957,929    $ 876,082   
U.S. Federal Services 450,143    292,295    1,210,105    799,018   
Outside the U.S. 114,244    147,283    369,667    456,749   
Total $ 901,337    $ 730,710    $ 2,537,701    $ 2,131,849   
Gross profit:        
U.S. Health & Human Services $ 93,029    27.6% $ 86,664    29.8% $ 268,073    28.0% $ 260,955    29.8%
U.S. Federal Services 84,723    18.8% 66,803    22.9% 232,502    19.2% 175,484    22.0%
Outside the U.S. 7,851    6.9% 20,780    14.1% 13,576    3.7% 66,495    14.6%
Total $ 185,603    20.6% $ 174,247    23.8% $ 514,151    20.3% $ 502,934    23.6%
Selling, general & administrative expense:        
U.S. Health & Human Services $ 31,996    9.5% $ 32,414    11.1% $ 102,633    10.7% $ 93,953    10.7%
U.S. Federal Services 45,490    10.1% 32,896    11.3% 131,455    10.9% 90,632    11.3%
Outside the U.S. 13,668    12.0% 15,791    10.7% 47,125    12.7% 52,591    11.5%
Gain on sale of a business (3) (1,706)   NM —    NM (1,706)   NM —    NM
Other (2) 134    NM 503    NM 4,155    NM 2,201    NM
Total $ 89,582    9.9% $ 81,604    11.2% $ 283,662    11.2% $ 239,377    11.2%
Operating income:        
U.S. Health & Human Services $ 61,033    18.1% $ 54,250    18.6% $ 165,440    17.3% $ 167,002    19.1%
U.S. Federal Services 39,233    8.7% 33,907    11.6% 101,047    8.4% 84,852    10.6%
Outside the U.S. (5,817)   (5.1)% 4,989    3.4% (33,549)   (9.1)% 13,904    3.0%
Amortization of intangible assets (8,712)   NM (9,049)   NM (26,734)   NM (24,026)   NM
Gain on sale of a business (3) 1,706    NM —    NM 1,706    NM —    NM
Other (134)   NM (503)   NM (4,155)   NM (2,201)   NM
Total $ 87,309    9.7% $ 83,594    11.4% $ 203,755    8.0% $ 239,531    11.2%

(1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.”
(2) Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment, including the costs for actual and potential acquisitions of other businesses.
(3) During fiscal year 2020, we sold Q2 Administrators LLC, a subsidiary within our U.S. Federal Services Segment, resulting in a gain. Refer to "Note 6. Acquisitions and Divestiture" for more details.
Identifiable assets for the segments are shown below (in thousands):
June 30, 2020 September 30, 2019
U.S. Health & Human Services $ 701,864    $ 500,641   
U.S. Federal Services 992,207    795,553   
Outside the U.S. 200,752    234,769   
Corporate 168,163    214,769   
Total $ 2,062,986    $ 1,745,732