Maximus, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

The changes in goodwill for the nine months ended June 30, 2013 are as follows (in thousands):

	Health Services			Human Services			Total
Balance as of September 30, 2012	$	63,517		$	48,515		$	112,032
Changes to allocation of PSI purchase price	65			64			129
Foreign currency translation	(512		)	(2,354		)	(2,866		)
Balance as of June 30, 2013	$	63,070		$	46,225		$	109,295

The following table sets forth the components of intangible assets (in thousands):

	As of June 30, 2013						As of September 30, 2012
	Cost		Accumulated Amortization		Intangible Assets, net		Cost		Accumulated Amortization		Intangible Assets, net

Customer contracts and relationships	$	19,265	$	4,237	$	15,028	$	20,167	$	3,082	$	17,085
Technology based intangible assets	8,859		5,643		3,216		9,114		4,909		4,205
Trademark	4,409		1,093		3,316		4,450		497		3,953
Non-compete arrangements	238		202		36		254		167		87
Total	$	32,771	$	11,175	$	21,596	$	33,985	$	8,655	$	25,330

The Company’s intangible assets have a weighted average remaining life of 5.8 years, comprising 6.4 years for customer contracts and relationships, 4.7 years for technology-based intangible assets, 4.2 years for the trademark, and 0.6 years for non-compete arrangements. Amortization expense for the nine months ended June 30, 2013 and 2012 was $3.5 million and $0.8 million, respectively. Estimated future amortization expense is as follows (in thousands):

Three months ended September 30, 2013	$	1,077
Year ended September 30, 2014	3,926
Year ended September 30, 2015	3,851
Year ended September 30, 2016	3,794
Year ended September 30, 2017	3,395
Year ended September 30, 2018	2,699
Thereafter	2,854
Total	$	21,596

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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