Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.4
Segment Information
 3 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
We conduct our operations through three business segments: U.S. Services, U.S. Federal Services, and Outside the U.S.
•Our U.S. 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 the Affordable Care Act (ACA), Medicaid, the Children’s Health Insurance Program (CHIP), Temporary Assistance to Needy Families (TANF), and child support programs. The segment continues to execute on its clinical evolution strategy by expanding its clinical offerings in public health with new work in contact tracing, disease investigation, and vaccine distribution support services as part of the government's COVID-response efforts. We also successfully expanded into the unemployment insurance market, supporting more than 15 states in their unemployment insurance programs.
•Our U.S. Federal Services Segment provides program administration, appeals and assessments services and technology solutions, including system and software development and maintenance services, for various U.S. federal civilian programs. The 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. The segment recently expanded its clinical offerings in public health with new work supporting the Federal Government's COVID-response efforts. This included expanded work with the Centers for Disease Control and Prevention (CDC) for their helpline, an outbound customer support center for the Office of the Assistant Secretary for Health to notify individuals throughout the U.S. of their COVID test result, and increased support for the IRS Wage and Investment Division's response efforts to
general inquiries regarding the Coronavirus Aid Relief & Economic Security (CARES) Act and Economic Impact Payment Service Plan.
•Our Outside the U.S. Segment provides business process services (BPS) solutions for international governments and commercial clients. These services include health and disability assessments, program administration for employment services and other job seeker-related services. We support programs and deliver services in the United Kingdom (U.K.), 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; in addition to Italy, Saudi Arabia, Singapore, South Korea, and Sweden, where we predominantly provide employment support and job seeker services.
Expenses that are not specifically included in the segments are included in other categories, including amortization of intangible assets and the direct costs of acquisitions. These costs are excluded from measuring each segment's operating performance.
  Three Months Ended December 31,
(in thousands) 2020 % (1) 2019 % (1)
Revenue:
U.S. Services $ 384,934  $ 312,281 
U.S. Federal Services 405,245  366,571 
Outside the U.S. 155,375  139,377 
Total $ 945,554  $ 818,229 
Gross profit:
U.S. Services $ 99,002  25.7% $ 89,590  28.7%
U.S. Federal Services 82,496  20.4% 70,821  19.3%
Outside the U.S. 24,557  15.8% 15,039  10.8%
Total $ 206,055  21.8% $ 175,450  21.4%
Selling, general & administrative expense:
U.S. Services $ 37,456  9.7% $ 31,398  10.1%
U.S. Federal Services 52,252  12.9% 39,239  10.7%
Outside the U.S. 20,032  12.9% 16,053  11.5%
Other (2) 2,227  NM 537  NM
Total $ 111,967  11.8% $ 87,227  10.7%
Operating income:
U.S. Services $ 61,546  16.0% $ 58,192  18.6%
U.S. Federal Services 30,244  7.5% 31,582  8.6%
Outside the U.S. 4,525  2.9% (1,014) (0.7)%
Amortization of intangible assets (6,516) NM (9,088) NM
Acquisition-related expenses (1,873) NM —  NM
Other (2) (354) NM (537) NM
Total $ 87,572  9.3% $ 79,135  9.7%

(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.
Identifiable assets for the segments are shown below:
(in thousands) December 31, 2020 September 30, 2020
U.S. Services $ 729,573  $ 702,728 
U.S. Federal Services 889,220  937,477 
Outside the U.S. 228,779  224,532 
Corporate 218,661  159,965 
Total $ 2,066,233  $ 2,024,702