Annual report pursuant to Section 13 and 15(d)

Business segments (Tables)

v3.20.2
Business segments (Tables)
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Schedule of financial information for each of the Company's business segments
The results of these segments for the three years ended September 30, 2020, are shown below.
  Year ended September 30,
(in thousands) 2020 2019 2018
Revenue:      
U.S. Services 1,329,274  $ 1,176,488  $ 1,213,911 
U.S. Federal Services 1,633,337  1,111,197  478,911 
Outside the U.S. 498,926  599,130  699,414 
Total $ 3,461,537  $ 2,886,815  $ 2,392,236 
Gross profit:      
U.S. Services $ 360,272  $ 344,109  $ 359,624 
U.S. Federal Services 318,925  242,070  126,698 
Outside the U.S. 31,805  85,005  108,063 
Total $ 711,002  $ 671,184  $ 594,385 
Selling, general and administrative expense:      
U.S. Services $ 132,489  $ 123,275  $ 140,990 
U.S. Federal Services 186,023  126,128  69,312 
Outside the U.S. 65,938  68,944  72,095 
Gain on sale of a business (1) (1,718) —  — 
Other (2) 4,358  2,676  2,844 
Total $ 387,090  $ 321,023  $ 285,241 
Operating income:      
U.S. Services $ 227,783  $ 220,834  $ 218,634 
U.S. Federal Services 132,902  115,942  57,386 
Outside the U.S. (34,133) 16,061  35,968 
Amortization of intangible assets (35,634) (33,054) (10,308)
Restructuring costs (3) —  —  (3,353)
Acquisition-related expenses (4) (4,621) (2,691) (947)
Gain on sale of a business (1) 1,718  —  — 
Other 263  15  (1,897)
Total $ 288,278  $ 317,107  $ 295,483 
Depreciation and amortization:      
U.S. Services $ 20,951  $ 18,466  $ 20,963 
U.S. Federal Services 25,153  16,802  8,478 
Outside the U.S. 18,423  17,136  22,443 
Total $ 64,527  $ 52,404  $ 51,884 

(1)    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. Business combinations and disposals" for more details.
(2)    Other selling, general and administrative expenses includes credits and costs that are not allocated to a particular segment.
(3)    Restructuring costs incurred in the year ending September 30, 2018, were related to our United Kingdom businesses.
(4)    Acquisition-related expenses are costs of completed business combinations as well as the costs of any unsuccessful transactions. The charges above include costs for the acquisition of the citizen engagement centers business that were incurred in fiscal years 2018 and 2019.
Schedule of distribution of revenues
Our revenue was distributed as follows:
  Year ended September 30,
(in thousands) 2020 2019 2018
United States $ 2,962,610  $ 2,287,685  $ 1,692,823 
United Kingdom 246,335  293,695  347,026 
Australia 147,156  198,795  247,850 
Rest of World 105,436  106,640  104,537 
Total $ 3,461,537  $ 2,886,815  $ 2,392,236 
Schedule of identifiable assets by segment
Identifiable assets for the segments are shown below:
  Year ended September 30,
(in thousands) 2020 2019
U.S. Services $ 702,728  $ 500,641 
U.S. Federal Services 937,477  795,553 
Outside the U.S. 224,532  234,769 
Corporate/Other 159,965  214,769 
Total $ 2,024,702  $ 1,745,732 
Schedule of distribution of total long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets
Our long-lived assets, consisting of property and equipment, capitalized software costs, operating lease right-of-use assets and deferred compensation plan assets were distributed as follows:
  Year ended September 30,
 (in thousands) 2020 2019
United States $ 255,346  $ 134,511 
Australia 30,183  11,950 
Canada 24,522  14,681 
United Kingdom 7,610  3,129 
Rest of World 1,071  595 
Total $ 318,732  $ 164,866