Business combinations and disposal (Tables)
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12 Months Ended |
Sep. 30, 2019 |
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| Business Combinations [Abstract] |
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| Schedule of assets and liabilities recorded in the Company's financial statements at their fair values at the acquisition date |
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| (dollars in thousands) |
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Estimated purchase price allocation at June 30, 2019 |
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Adjustments |
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Final purchase price allocation at
September 30, 2019 |
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| Cash consideration |
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$ |
430,699 |
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$ |
24 |
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$ |
430,723 |
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| Billed and unbilled receivables |
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142,165 |
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(88) |
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142,077 |
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| Property and equipment |
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8,974 |
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4,987 |
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13,961 |
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| Other assets |
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4,508 |
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22 |
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4,530 |
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| Intangible assets |
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122,300 |
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— |
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122,300 |
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| Total identifiable assets acquired |
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277,947 |
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4,921 |
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282,868 |
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| Accounts payable and other liabilities |
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31,862 |
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4,923 |
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36,785 |
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| Net identifiable assets acquired |
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246,085 |
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(2) |
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246,083 |
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| Goodwill |
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184,614 |
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26 |
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184,640 |
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| Net assets acquired |
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$ |
430,699 |
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$ |
24 |
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$ |
430,723 |
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| Summary of valuation of the intangible assets acquired |
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Useful life |
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Fair value |
| Customer relationships - all contracts except U.S. Census |
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10 years |
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$ |
85,300 |
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| Customer relationship - U.S. Census |
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2 years |
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37,000 |
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| Total intangible assets |
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$ |
122,300 |
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| Business Acquisition, Pro Forma Information |
The following table presents certain results for the years ended September 30, 2019 and 2018, as though the acquisition had occurred on October 1, 2017. The pro forma results below eliminate intercompany transactions, include amortization charges for acquired intangible assets, eliminate pre-acquisition transaction costs and include estimates of interest expense, as well as corresponding changes in our tax charge. This pro forma information is presented for information only. For example, this pro forma information does not include any of our anticipated synergies but does include, in both years shown, a charge of $18.5 million, related to the amortization of the U.S. Census customer relationship intangible asset. Although the U.S. Census contract commenced prior to October 1, 2017, more of the benefit will be recorded in fiscal year 2020. For these and other reasons, this pro forma information is not necessarily indicative of the results if the acquisition had taken place on that date.
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Pro forma results for the year ended September 30, |
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| (dollars in thousands, except per share data) |
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2019 |
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2018 |
| Revenue |
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$ |
2,985,244 |
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$ |
3,016,823 |
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| Net income |
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243,968 |
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218,647 |
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| Basic earnings per share attributable to MAXIMUS |
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3.79 |
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3.34 |
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| Diluted earnings per share attributed to MAXIMUS |
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3.77 |
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3.32 |
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| Schedule of changes in the carrying amount of goodwill |
Changes in goodwill for the years ended September 30, 2019 and 2018 are shown below. Goodwill has been reallocated to conform with our new segment reporting.
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| (Dollars in thousands) |
U.S. Health and Human Services |
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U.S. Federal
Services |
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Outside the U.S. |
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Total |
| Balance as of September 30, 2017 |
$ |
139,588 |
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$ |
228,148 |
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$ |
35,240 |
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$ |
402,976 |
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| Foreign currency translation |
— |
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— |
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(3,094) |
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(3,094) |
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| Balance as of September 30, 2018 |
139,588 |
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228,148 |
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32,146 |
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399,882 |
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| Acquisition of citizen engagement centers business |
24,884 |
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154,470 |
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5,286 |
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184,640 |
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| Acquisition of GT Hiring Solutions |
— |
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— |
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1,347 |
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1,347 |
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| Other |
— |
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— |
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372 |
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372 |
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| Foreign currency translation |
— |
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— |
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(1,772) |
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(1,772) |
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| Balance as of September 30, 2019 |
$ |
164,472 |
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$ |
382,618 |
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$ |
37,379 |
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$ |
584,469 |
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| Schedule of components of intangible assets |
The following table sets forth the components of intangible assets (in thousands):
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As of September 30, 2019 |
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As of September 30, 2018 |
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Cost |
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Accumulated
Amortization |
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Intangible
Assets, net |
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Cost |
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Accumulated
Amortization |
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Intangible
Assets, net |
| Customer contracts and relationships |
$ |
250,455 |
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$ |
72,430 |
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$ |
178,025 |
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$ |
129,113 |
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$ |
42,683 |
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$ |
86,430 |
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| Technology-based intangible assets |
5,613 |
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4,405 |
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1,208 |
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5,750 |
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4,212 |
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1,538 |
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| Trademarks and trade names |
4,483 |
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4,466 |
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17 |
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4,496 |
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4,429 |
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67 |
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| Total |
$ |
260,551 |
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$ |
81,301 |
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$ |
179,250 |
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$ |
139,359 |
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$ |
51,324 |
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$ |
88,035 |
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| Schedule of estimated future amortization expense |
The estimated future amortization expense for the next five years for the intangible assets held by the Company as of September 30, 2019, is as follows (in thousands):
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| 2020 |
$ |
35,632 |
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| 2021 |
18,582 |
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| 2022 |
16,212 |
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| 2023 |
16,118 |
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| 2024 |
15,994 |
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