Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | MAXIMUS INC | |
Entity Central Index Key | 0001032220 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Reporting Company | false | |
Entity Common Stock, Shares Outstanding | 63,810,845 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 736,520 | $ 612,787 | $ 1,401,139 | $ 1,235,935 |
Cost of revenue | 567,098 | 463,984 | 1,072,452 | 935,172 |
Gross profit | 169,422 | 148,803 | 328,687 | 300,763 |
Selling, general and administrative expenses | 78,102 | 74,879 | 157,773 | 144,438 |
Amortization of intangible assets | 9,519 | 2,603 | 14,977 | 5,321 |
Operating income | 81,801 | 71,321 | 155,937 | 151,004 |
Interest expense | 1,569 | 157 | 2,194 | 325 |
Other income, net | 447 | 1,392 | 2,492 | 1,679 |
Income before income taxes | 80,679 | 72,556 | 156,235 | 152,358 |
Provision for income taxes | 18,913 | 17,450 | 38,746 | 37,300 |
Net income | 61,766 | 55,106 | 117,489 | 115,058 |
(Loss)/income attributable to noncontrolling interests | (158) | (386) | (348) | 475 |
Net income attributable to MAXIMUS | $ 61,924 | $ 55,492 | $ 117,837 | $ 114,583 |
Basic earnings per share attributable to MAXIMUS (in dollars per share) | $ 0.96 | $ 0.84 | $ 1.82 | $ 1.74 |
Diluted earnings per share attributable to MAXIMUS (in dollars per share) | 0.96 | 0.84 | 1.82 | 1.73 |
Dividends paid per share (in dollars per share) | $ 0.25 | $ 0.045 | $ 0.50 | $ 0.09 |
Weighted average shares outstanding: | ||||
Basic weighted average shares outstanding (in shares) | 64,369 | 65,856 | 64,600 | 65,857 |
Diluted weighted average shares outstanding (in shares) | 64,643 | 66,268 | 64,817 | 66,223 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 61,766 | $ 55,106 | $ 117,489 | $ 115,058 |
Foreign currency translation adjustments | 3,537 | 2,869 | (2,183) | 3,184 |
Comprehensive income | 65,303 | 57,975 | 115,306 | 118,242 |
Comprehensive (loss)/income attributable to noncontrolling interests | (158) | (386) | (348) | 475 |
Comprehensive income attributable to MAXIMUS | $ 65,461 | $ 58,361 | $ 115,654 | $ 117,767 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 46,799 | $ 349,245 |
Short-term investments | 0 | 20,264 |
Accounts receivable — billed and billable, net of reserves of $6,073 and $4,285 | 491,560 | 357,613 |
Accounts receivable — unbilled | 131,250 | 31,536 |
Income taxes receivable | 20,733 | 5,979 |
Prepaid expenses and other current assets | 49,668 | 43,995 |
Total current assets | 740,010 | 808,632 |
Property and equipment, net | 76,693 | 77,544 |
Capitalized software, net | 25,232 | 22,429 |
Goodwill | 587,751 | 399,882 |
Intangible assets, net | 195,354 | 88,035 |
Deferred contract costs, net | 19,771 | 14,380 |
Deferred compensation plan assets | 32,387 | 34,305 |
Deferred income taxes | 209 | 6,834 |
Other assets | 10,309 | 9,959 |
Total assets | 1,687,716 | 1,462,000 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 169,099 | 114,378 |
Accrued compensation and benefits | 87,698 | 95,555 |
Deferred revenue | 39,215 | 51,182 |
Income taxes payable | 3,159 | 4,438 |
Current portion of long-term debt and other borrowings | 3,681 | 136 |
Other liabilities | 17,909 | 11,760 |
Total current liabilities | 320,761 | 277,449 |
Deferred revenue, less current portion | 24,910 | 20,394 |
Deferred income taxes | 51,060 | 26,377 |
Long-term debt | 75,295 | 374 |
Deferred compensation plan liabilities, less current portion | 32,622 | 33,497 |
Other liabilities | 15,487 | 17,490 |
Total liabilities | 520,135 | 375,581 |
Shareholders’ equity: | ||
Common stock, no par value; 100,000 shares authorized; 63,811 and 64,371 shares issued and outstanding at March 31, 2019, and September 30, 2018, at stated amount, respectively | 498,269 | 487,539 |
Accumulated other comprehensive loss | (39,136) | (36,953) |
Retained earnings | 705,824 | 633,281 |
Total MAXIMUS shareholders’ equity | 1,164,957 | 1,083,867 |
Noncontrolling interests | 2,624 | 2,552 |
Total equity | 1,167,581 | 1,086,419 |
Total liabilities and equity | $ 1,687,716 | $ 1,462,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 6,073 | $ 4,285 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 63,811,000 | 64,371,000 |
Common stock, shares issued | 63,811,000 | 64,371,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operations: | ||
Net income | $ 117,489 | $ 115,058 |
Adjustments to reconcile net income to cash flows from operations: | ||
Depreciation and amortization of property and equipment and capitalized software | 22,407 | 27,074 |
Amortization of intangible assets | 14,977 | 5,321 |
Deferred income taxes | 17,764 | (9,179) |
Stock compensation expense | 9,904 | 11,324 |
Change in assets and liabilities excluding acquired assets and liabilities: | ||
Accounts receivable — billed and billable | (72,720) | (18,522) |
Accounts receivable — unbilled | 9,189 | (4,730) |
Prepaid expenses and other current assets | (5,118) | 8,526 |
Deferred contract costs | (5,415) | 1,794 |
Accounts payable and accrued liabilities | 42,080 | (3,171) |
Accrued compensation and benefits | (7,443) | (15,391) |
Deferred revenue | 4,435 | (23,789) |
Income taxes | (16,496) | 18,634 |
Other assets and liabilities | (3,842) | 3,811 |
Cash flows from operations | 127,211 | 116,760 |
Cash flows from investing activities: | ||
Purchases of property and equipment and capitalized software costs | (18,541) | (13,175) |
Acquisitions | (421,809) | (157) |
Redemption of short-term investments | 19,996 | 0 |
Other | 284 | 541 |
Cash used in investing activities | (420,070) | (12,791) |
Cash flows from financing activities: | ||
Cash dividends paid to MAXIMUS shareholders | (31,983) | (5,865) |
Purchases of MAXIMUS common stock | (46,068) | (1,038) |
Tax withholding related to RSU vesting | (8,915) | (8,529) |
Borrowings | 320,048 | 124,683 |
Repayment of credit facility and other long-term debt | (241,539) | (124,752) |
Other | (133) | (2,130) |
Cash used in financing activities | (8,590) | (17,631) |
Effect of exchange rate changes on cash and cash equivalents | (632) | 1,070 |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (302,081) | 87,408 |
Cash, cash equivalents and restricted cash, beginning of period | 356,559 | 179,727 |
Cash, cash equivalents and restricted cash, end of period | $ 54,478 | $ 267,135 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Accumulated Other Comprehensive Income/(Loss) | Retained Earnings | Noncontrolling Interest |
Balance (in shares) at Sep. 30, 2017 | 65,137,000 | ||||
Balance at Sep. 30, 2017 | $ 945,768 | $ 475,592 | $ (27,619) | $ 492,112 | $ 5,683 |
Increase (Decrease) in Shareholders' Equity | |||||
Foreign currency translation | 3,184 | 3,184 | |||
Cash dividends | (7,994) | (5,865) | (2,129) | ||
Dividends on RSUs | $ 162 | (162) | |||
Repurchases of common stock (in shares) | (17,000) | ||||
Purchases of common stock | (1,038) | (1,038) | |||
Stock compensation expense | 11,324 | $ 11,324 | |||
Tax withholding related to RSU vesting | 183 | $ 183 | |||
RSUs vested (in shares) | 123,000 | ||||
Addition of noncontrolling interest from acquisition | (157) | $ 124 | (281) | ||
Net income | 115,058 | 114,583 | 475 | ||
Balance at Mar. 31, 2018 | 1,066,328 | $ 487,385 | (24,435) | 599,630 | 3,748 |
Balance (in shares) at Mar. 31, 2018 | 65,243,000 | ||||
Balance (in shares) at Dec. 31, 2017 | 65,120,000 | ||||
Balance at Dec. 31, 2017 | 1,007,652 | $ 481,261 | (27,304) | 547,151 | 6,544 |
Increase (Decrease) in Shareholders' Equity | |||||
Foreign currency translation | 2,869 | 2,869 | |||
Cash dividends | (5,064) | (2,935) | (2,129) | ||
Dividends on RSUs | 78 | (78) | |||
Stock compensation expense | 5,922 | $ 5,922 | |||
RSUs vested (in shares) | 123,000 | ||||
Addition of noncontrolling interest from acquisition | 157 | $ (124) | 281 | ||
Net income | 55,106 | 55,492 | (386) | ||
Balance at Mar. 31, 2018 | 1,066,328 | $ 487,385 | (24,435) | 599,630 | 3,748 |
Balance (in shares) at Mar. 31, 2018 | 65,243,000 | ||||
Balance (in shares) at Sep. 30, 2018 | 64,371,000 | ||||
Balance at Sep. 30, 2018 | 1,086,419 | $ 487,539 | (36,953) | 633,281 | 2,552 |
Increase (Decrease) in Shareholders' Equity | |||||
Foreign currency translation | (2,183) | (2,183) | |||
Cash dividends | (32,116) | (31,983) | (133) | ||
Dividends on RSUs | $ 826 | (826) | |||
Repurchases of common stock (in shares) | (716,000) | ||||
Purchases of common stock | (45,414) | (45,414) | |||
Stock compensation expense | 9,904 | $ 9,904 | |||
RSUs vested (in shares) | 156,000 | ||||
Net income | 117,489 | 117,837 | (348) | ||
Balance at Mar. 31, 2019 | $ 1,167,581 | $ 498,269 | (39,136) | 705,824 | 2,624 |
Balance (in shares) at Mar. 31, 2019 | 63,811,000 | 63,811,000 | |||
Balance (in shares) at Dec. 31, 2018 | 64,371,000 | 63,717,000 | |||
Balance at Dec. 31, 2018 | $ 1,117,379 | $ 492,938 | (42,673) | 664,332 | 2,782 |
Increase (Decrease) in Shareholders' Equity | |||||
Foreign currency translation | 3,537 | 3,537 | |||
Cash dividends | (15,950) | (15,950) | |||
Dividends on RSUs | $ 398 | (398) | |||
Repurchases of common stock (in shares) | (62,000) | ||||
Purchases of common stock | (4,084) | (4,084) | |||
Stock compensation expense | 4,933 | $ 4,933 | |||
RSUs vested (in shares) | 156,000 | ||||
Net income | 61,766 | 61,924 | (158) | ||
Balance at Mar. 31, 2019 | $ 1,167,581 | $ 498,269 | $ (39,136) | $ 705,824 | $ 2,624 |
Balance (in shares) at Mar. 31, 2019 | 63,811,000 | 63,811,000 |
Supplemental disclosures
Supplemental disclosures | 6 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosures | Supplemental Disclosures Under a resolution adopted in June 2018, the Board of Directors authorized the purchase, at management's discretion, of up to an aggregate of $200 million of our common stock. During the six months ended March 31, 2019, we purchased 0.7 million of our common shares at a cost of $45.4 million. During the six months ended March 31, 2018, we acquired approximately 17,000 common shares at a cost of $1.0 million. At March 31, 2019, $147.4 million remained available for future stock purchases. During the six months ended March 31, 2019, we granted 346,000 RSUs to our board of directors and employees. These awards will vest ratably over one five Our deferred compensation plan uses both mutual fund and life insurance investments to fund its obligations. The mutual funds are recorded at fair value, based upon quoted prices in active markets, and the life insurance investments at cash surrender value; changes in value are reported in the Consolidated Statement of Operations. At March 31, 2019, the deferred compensation plan held $20.0 million of the mutual fund investments. The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and other amounts included within current assets and liabilities that meet the definition of a financial instrument are shown at values equivalent to fair value due to the short-term nature of these items. Our accounts receivable billed and billable balance includes both amounts invoiced and amounts that are ready to be invoiced where the funds are collectible within standard invoice terms. Our accounts receivable unbilled balance includes balances where revenue has been earned but no invoice was issued on or before March 31, 2019. As noted above, we utilized our credit facility in November 2018 to fund part of the citizen engagement centers acquisition. During the six months ended March 31, 2019 and 2018, we made interest payments of $1.8 million and less than $0.1 million, respectively. At March 31, 2019, we had borrowings of $75.0 million outstanding on the facility. Litigation In August 2017, the Company and certain officers were named as defendants in a putative class action lawsuit filed in the U.S. District Court for the Eastern District of Virginia. The plaintiff alleged the defendants made a variety of materially false and misleading statements, or failed to disclose material information, concerning the status of the Company’s Health Assessment Advisory Service project for the U.K. Department for Work and Pensions from the period of October 20, 2014, through February 3, 2016. In August 201 8, our motion to dismiss the case was granted, and the case was dismissed. In October 2018, the plaintiffs filed a notice of appeal to the U.S. Circuit Court for the Fourth Circuit. That appeal is pending. At this time, it is not possible to reasonably predict whether this matter will be permitted to proceed as a class or to reasonably estimate the value of the claims asserted, and we are unable to estimate the potential loss or range of loss. A state Medicaid agency has been notified of two proposed disallowances by the Centers for Medicare and Medicaid Services (CMS) totaling approximately $31.0 million. From 2004 through 2009, we had a contract with the state agency in support of its school-based Medicaid claims. We entered into separate agreements with the school districts under which we assisted the districts with preparing and submitting claims to the state Medicaid agency which, in turn, submitted claims for reimbursement to CMS. The state has asserted that its agreement with us requires us to reimburse the state for the amounts owed to CMS. However, our agreements with the school districts require them to reimburse us for such amounts, and therefore we believe the school districts are responsible for any amounts that ultimately must be refunded to CMS. Although it is reasonably possible that a court could conclude we are responsible for the full balance of the disallowances, we believe our exposure in this matter is limited to our fees associated with this work and that the school districts will be responsible for the remainder. We have reserved our estimated fees earned from this engagement relating to the disallowances . We exited the federal healthcare-claiming business in 2009 and no longer provide the services at issue in this matter. No legal action has been initiated against us. |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. As permitted by these instructions, they do not include all of the information and notes required by generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended March 31, 2019, are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2018, has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. Certain financial results have been reclassified to conform with our current period presentation. • Our consolidated statement of cash flows for the six months ended March 31, 2018, includes a reclassification to reflect the effect of new accounting guidance. • Our consolidated b alance sheet at September 30, 2018, includes a reclassification to show a comparative balance for current and long-term debt, which were previously reported within "other liabilities." The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenue and expenses. On an ongoing basis, we evaluate our estimates including those related to revenue recognition and cost estimation on certain contracts, the realizability of goodwill and amounts related to income taxes, certain accrued liabilities and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. These financial statements should be read in conjunction with the consolidated audited financial statements and the notes thereto at September 30, 2018 and 2017, and for each of the three years ended September 30, 2018, included in our Annual Report on Form 10-K which was filed with the Securities and Exchange Commission on November 20, 2018. Changes in financial reporting Segments As previously reported, effective October 1, 2018, our Chief Executive Officer reorganized our reporting segments based on the way that management intends to allocate resources, manage performance and evaluate results. This reorganization of segments responds to recent changes in the markets in which we operate, the increasing integration of health and human services programs worldwide and the evolving needs of our government clients as they aim to deliver services in a more holistic manner to their citizens. Our results for the three and six months ended March 31, 2018 , were recast to conform with these new segments. See "Note 2. Segment I nformation" for more details of this change. Revenue recognition We adopted Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) on October 1, 2018, using the modified retrospective method and, accordingly, we recognized the cumulative effect of adoption as an adjustment of $32.9 million to our opening retained earnings balance on October 1, 2018. We applied this standard only to contracts that had not been completed as of the date of adoption. For contracts that had been modified prior to October 1, 2018, we calculated the cumulative effect of Topic 606 on each contract based upon the aggregate effect of all of the modifications at that date. Topic 606 applies to all of our contracts with customers and supersedes all previous standards on revenue recognition. In adopting Topic 606, we are required to follow a five-step process in order to identify and recognize revenue based upon a principle that revenue should be recognized as goods and services are transferred to customers in amounts that reflect the consideration to which we expect to be entitled for those goods and services. It did not change the actual amount of revenue being recognized for the majority of our contracts but did change the methodology by which we identified that revenue. In the most significant change under Topic 606, we are required to estimate and recognize revenue on contracts over the period where we provide a service. This affects contracts where performance outcomes are achieved over time, most notably for welfare-to-work contracts where we are compensated for placing individuals in sustained employment. Under our former methodology of recognizing revenue, we deferred recognizing this outcome-based revenue until the outcome was achieved. Under Topic 606, we estimate our anticipated future fees and recognize them over the expected period of performance. As a result, more judgments and estimates are required within the process of recognizing revenue than were required under the former methodology. The adoption of Topic 606 resulted in the following changes to our opening balance sheet: (dollars in thousands) Balance at September 30, 2018 Adjustments due to adoption of new standard Opening balance at October 1, 2018 Assets Accounts receivable - unbilled $ 31,536 $ 35,414 $ 66,950 Deferred income taxes 6,834 (6,625) 209 Liabilities and shareholders' equity Deferred revenue - current 51,182 (11,767) 39,415 Deferred income taxes - long-term 26,377 7,074 33,451 Retained earnings 633,281 32,929 666,210 Noncontrolling interests 2,552 553 3,105 The table below shows the effects of the adoption of Topic 606 on our consolidated statement of operations for the three and six months ended March 31, 2019. Three months ended March 31, 2019 Six months ended March 31, 2019 (dollars in thousands) Balance under previous accounting guidance Adjustments due to adoption of new standard Balance as reported Balance under previous accounting guidance Adjustments due to adoption of new standard Balance as reported Revenue $ 735,487 $ 1,033 $ 736,520 $ 1,399,372 $ 1,767 $ 1,401,139 Income before income taxes 79,646 1,033 80,679 154,468 1,767 156,235 Provision for income taxes 18,628 285 18,913 38,467 279 38,746 Net income 61,018 748 61,766 116,001 1,488 117,489 (Loss)/income attributable to noncontrolling interests (328) 170 (158) (838) 490 (348) Net income attributable to MAXIMUS $ 61,346 $ 578 $ 61,924 $ 116,839 $ 998 $ 117,837 The effect on our balance sheet would have been as follows: (dollars in thousands) Balance at March 31, 2019, under previous accounting guidance Adjustments due to adoption of new standard Balance at March 31, 2019, as reported Assets Accounts receivable - unbilled $ 95,796 $ 35,454 $ 131,250 Deferred income taxes 6,858 (6,649) 209 Liabilities and shareholders' equity Deferred revenue - current 51,963 (12,748) 39,215 Deferred income taxes - long-term 43,957 7,103 51,060 Accumulated other comprehensive loss (38,617) (519) (39,136) Retained earnings 671,897 33,927 705,824 Noncontrolling interests 1,581 1,043 2,624 Additional information and disclosures relating to this change are included within "Note 3. Revenue recognition." Statement of cash flows We adopted ASU No. 2016-15 Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments and ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash o n October 1, 2018, using the retrospective method. The most notable change relates to the treatment of balances we consider to be "restricted cash." Restricted cash represents funds which are held in our bank accounts but which we are precluded from using for general business needs through contractual requirements; these requirements include serving as collateral for lease, credit card or letter of credit arrangements or where we hold funds on behalf of clients. As we did not consider these restricted cash balances to be cash or cash equivalents, we did not previously include them within our cash flow statement except where restrictions over cash were imposed or lapsed. Beginning on October 1, 2018, we are required to include movements in cash, cash equivalents and restricted cash within our consolidated statements of cash flows. Accordingly, we have presented our consolidated statement of cash flows using the new rules for all periods shown. Our balances for cash, cash equivalents and restricted cash are as follows: Balance as of (dollars in thousands) March 31, 2019 September 30, 2018 March 31, 2018 September 30, 2017 Cash and cash equivalents $ 46,799 $ 349,245 $ 253,227 $ 166,252 Restricted cash (recorded within "other current assets") 7,679 7,314 13,908 13,475 Cash, cash equivalents and restricted cash $ 54,478 $ 356,559 $ 267,135 $ 179,727 |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The table below provides certain financial information for each of our business segments. As noted in "Note 1. Organization and Basis of Presentation," we have made changes to our business segments in fiscal year 2019. Accordingly, the comparative results shown for the three and six months ended March 31, 2018 , are presented differently from those shown in previous filings. From October 1, 2018, we operated 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 work , and related consulting work for U.S. state and local government programs. These services support a variety of programs including Medicaid, the Children’s Health Insurance Program, the Affordable Care Act and Temporary Assistance for Needy Families. • 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 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 for welfare-to-work services and other related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service, 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; Saudi Arabia and Singapore. Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2019 % (1) 2018 % (1) 2019 % (1) 2018 % (1) Revenue: U.S. Health & Human Services $ 290,737 $ 306,249 $ 584,950 $ 610,490 U.S. Federal Services 289,736 116,327 506,723 249,310 Outside the U.S. 156,047 190,211 309,466 376,135 Total $ 736,520 $ 612,787 $ 1,401,139 $ 1,235,935 Gross profit: U.S. Health & Human Services $ 86,260 29.7% $ 86,586 28.3% $ 174,291 29.8% $ 170,817 28.0% U.S. Federal Services 60,696 20.9% 27,374 23.5% 108,681 21.4% 60,732 24.4% Outside the U.S. 22,466 14.4% 34,843 18.3% 45,715 14.8% 69,214 18.4% Total $ 169,422 23.0% $ 148,803 24.3% $ 328,687 23.5% $ 300,763 24.3% Selling, general & administrative expense: U.S. Health & Human Services $ 29,400 10.1% $ 36,616 12.0% $ 61,539 10.5% $ 71,421 11.7% U.S. Federal Services 31,104 10.7% 17,540 15.1% 57,736 11.4% 34,188 13.7% Outside the U.S. 17,992 11.5% 18,403 9.7% 36,800 11.9% 36,509 9.7% Restructuring costs — NM 2,320 NM — NM 2,320 NM Other (394) NM — NM 1,698 NM — NM Total $ 78,102 10.6% $ 74,879 12.2% $ 157,773 11.3% $ 144,438 11.7% Operating income: U.S. Health & Human Services $ 56,860 19.6% $ 49,970 16.3% $ 112,752 19.3% $ 99,396 16.3% U.S. Federal Services 29,592 10.2% 9,834 8.5% 50,945 10.1% 26,544 10.6% Outside the U.S. 4,474 2.9% 16,440 8.6% 8,915 2.9% 32,705 8.7% Amortization of intangible assets (9,519) NM (2,603) NM (14,977) NM (5,321) NM Restructuring costs (2) — NM (2,320) NM — NM (2,320) NM Other (3) 394 NM — NM (1,698) NM — NM Total $ 81,801 11.1% $ 71,321 11.6% $ 155,937 11.1% $ 151,004 12.2% (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) During fiscal year 2018, we incurred costs in restructuring our United Kingdom business. (3) Other selling, general & administrative expenses includes credits and costs not directly allocated to a particular segment. In the six month periods ended March 31, 2019, these include $2.7 million of costs directly related to the acquisition of the citizen engagement centers business. Refer to " Note 5. Acquisition of Citizen Engagement Centers Business " |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Beginning October 1, 2018, we recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers . We adopted this standard on October 1, 2018, using the modified retrospective method; accordingly, only periods after October 1, 2018, utilize ASC Topic 606. Under ASC Topic 606, we recognize revenue as, or when, we satisfy performance obligations under a contract. We account for a contract when the parties have approved the contract and are committed to perform on it, the rights of each party and the payment terms are identified, the contract has commercial substance and it is probable that we will collect substantially all of the consideration. A performance obligation is a promise in a contract to transfer a distinct good or service, or a series of distinct goods or services, to a customer. The transaction price of a contract must be allocated to each performance obligation and recognized as the performance obligation is satisfied. Although our services may have many components, these components are not necessarily distinct performance obligations as they may be interdependent on or interrelated to each other. Where our contracts contain more than one performance obligation, we allocate the contract’s transaction price to each performance obligation using our best estimate of the standalone selling price of each component. This method will vary from contract to contract. Where available, we utilize standalone selling prices of similar components. If this information is unavailable, we utilize a suitable metric to allocate selling price, such as costs incurred. The majority of our contracts have performance obligations which are satisfied over time. In most cases, we view our performance obligations as promises to transfer a series of distinct services to our customer that are substantially the same and which have the same pattern of service. We recognize revenue over the performance period as a customer receives the benefits of our services. This continuous transfer of control is supported by the unilateral right of many of our customers to terminate contracts for convenience, without having to provide justification for this decision. Where we are reimbursed on a cost-plus basis, we recognize revenue based upon our costs incurred to date; where we are reimbursed on a fixed price basis, we recognize revenue based upon an appropriate output measure which may be time elapsed or another measure within the contract. When we have variable fees, such as revenue related to the volume of work or award fees, we allocate that revenue to the distinct periods of service to which they relate. In estimating our variable fees, we are required to constrain our estimates to the extent that it is probable that there will not be a significant reversal of cumulative revenue when the uncertainty is resolved. Other performance obligations are satisfied at a point in time, rather than over time. We recognize revenue only when the customer has received control over the goods provided. Revenue recognition on these performance obligations does not require a significant level of judgment or estimation. Where we have contract modifications, these are reviewed to determine whether they should be accounted for as part of the original performance obligation or as a separate contract. Where the modification changes the scope or price and the additional performance obligations are at their standalone selling price, these services are considered as a separate contract. Where there is a modification and the additional performance obligations are not at their standalone selling price, we consider whether those performance obligations are distinct from those already delivered. If services are distinct from those already provided, the contract is accounted for prospectively, as though the original contract had been terminated and a new arrangement entered into. Where the modification includes goods or services which are not distinct from those already provided, we record a cumulative adjustment to revenue based upon a remeasurement of progress towards the complete satisfaction of performance obligations not yet fully delivered. Disaggregation of revenue In addition to our segment reporting, we disaggregate our revenues by product, contract type, customer type and geography. Our operating segments represent the manner in which our Chief Executive Officer reviews our financial results which is further discussed in "Note 2. Segment information." By operating segment and service (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Program administration $ 219,732 $ 438,705 Assessments and appeals 33,331 70,552 Workforce and children services 23,898 47,801 Other 13,776 27,892 Total U.S. Health and Human Services $ 290,737 584,950 Program administration $ 209,996 $ 350,117 Technology solutions 37,993 76,876 Assessments and appeals 41,747 79,730 Total U.S. Federal Services $ 289,736 506,723 Workforce and children services $ 69,759 $ 143,037 Assessments and appeals 67,771 130,081 Program administration 15,922 31,242 Other 2,595 5,106 Total Outside the U.S. $ 156,047 $ 309,466 Total revenue $ 736,520 $ 1,401,139 By contract type (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Performance-based $ 261,592 $ 574,479 Cost-plus 298,133 473,431 Fixed price 139,871 287,022 Time and materials 36,924 66,207 Total revenue $ 736,520 $ 1,401,139 By customer type (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 New York State government agencies $ 89,858 $ 181,570 Other U.S. state government agencies 197,870 396,772 Total U.S. state government agencies $ 287,728 $ 578,342 United States Federal Government agencies 270,623 468,901 International government agencies 146,292 289,073 Other, including local municipalities and commercial customers 31,877 64,823 Total revenue $ 736,520 $ 1,401,139 By geography (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 United States of America $ 580,473 $ 1,091,673 United Kingdom 78,334 151,752 Australia 50,997 104,370 Rest of world 26,716 53,344 Total revenue $ 736,520 $ 1,401,139 Contract balances Differences in timing between revenue recognition and cash collection result in contract assets and contract liabilities. We classify these assets as accounts receivable — billed and billable and unbilled receivables and the liabilities as deferred revenue. In many contracts, we bill our customers on a monthly basis shortly after the month end for work performed in that month. Funds are considered collectible and are included within accounts receivable — billed and billable. Exceptions to this pattern will arise for various reasons, including those listed below. • Under cost-plus contracts, we are typically required to estimate a contract’s share of our general and administrative expenses. This share is based upon estimates of total costs which may vary over time. We typically invoice our customers at an agreed provisional billing rate which will differ from actual rates incurred. If our actual rates are higher than the provisional billing rates, an asset is recorded for this variance; if the provisional billing rate is higher than our actual rate, we record a liability. • Certain contracts include retainage balances, whereby revenue is earned but cash payments are held back by the customer for a period of time, typically to allow the customer to evaluate the quality of our performance. • In certain contracts, notably our welfare-to-work contracts, we earn revenue from program participants achieving outcomes such as sustained employment for periods up to 24 months. This revenue may only be invoiced at the conclusion of this period of performance. Since we are required to recognize revenue over the period where the customer receives the benefit, we record an unbilled receivable. • In certain contracts, we may receive funds from our customers prior to performing operations. These funds are typically referred to as “set-up costs” and reflect the need for us to make investments in infrastructure prior to providing a service. This investment in infrastructure is not a performance obligation which is distinct from the service that is subsequently provided and, as a result, revenue is not recognized based upon the establishment of this infrastructure, but rather over the course of the contractual relationship. The funds are initially recorded as deferred revenue and recognized over the term of the contract. Other contracts may not include set-up fees but will provide higher fees in earlier periods of the contract. The premium on these fees is deferred. During the six months ended March 31, 2019, we recognized revenue of $32.0 million included in our deferred revenue balances at September 30, 2018. During the three months ended March 31, 2019, we recognized $23.0 million included in our deferred revenue at December 31, 2018. Contract estimates We are required to use estimates in recognizing certain revenue. Our most significant estimates relate to: • Our welfare-to work contracts, where we estimate our future variable consideration by estimating the volume and timing of our caseload reaching employment milestones ; • Our transaction-based contracts where we provide a significant discount to our customer in future periods, where we must calculate an average rate of revenue per transaction based upon our estimates of the total revenue and anticipated volume of work from the contract ; and • Our cost-plus contracts, which require us to prepare an estimate of our indirect costs which are allocated to our contracts . Where we have changes to our estimates, these are recognized on a cumulative catch-up basis. In fiscal year 2019, our revenue included a reduction of $8.0 million from changes in estimates. Deferred contract costs For many contracts, we incur significant incremental costs at the beginning of an arrangement. Typically, these costs relate to the establishment of infrastructure which we utilize to satisfy our performance obligations with the contract. We report these costs as deferred contract costs and amortize them on a straight-line basis over the shorter of the useful economic life of the asset or the anticipated term of the contract. Since September 30, 2018, we have deferred $8.2 million of costs. During the three and six months ended March 31, 2019, we amortized $1.5 million and $2.8 million of deferred contract costs. This amortization was recorded within our "cost of revenue" on our consolidated statement of operations. Remaining performance obligations At March 31, 2019, we had approximately $409 million of remaining performance obligations. We anticipate that we will recognize revenue on approximately 50% of this balance within the next twelve months. This balance excludes contracts with an original duration of twelve months or less, including contracts with a penalty-free termination for convenience clause, and any variable consideration which is allocated entirely to future performance obligations including variable transaction fees or fees tied directly to costs incurred. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The weighted average number of shares outstanding used to compute earnings per share was as follows: Three Months Ended March 31, Six Months Ended March 31, (shares in thousands) 2019 2018 2019 2018 Basic weighted average shares outstanding 64,369 65,856 64,600 65,857 Dilutive effect of unvested RSUs 274 412 217 366 Denominator for diluted earnings per share 64,643 66,268 64,817 66,223 |
Acquisition of Citizen Engageme
Acquisition of Citizen Engagement Centers Business | 6 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Citizen Engagement Centers Business | Acquisition of Citizen Engagement Centers Business On November 16, 2018, we acquired General Dynamics Information Technology's citizen engagement centers business, pursuant to an asset purchase agreement dated October 5, 2018. The assets acquired included existing contracts, contractual relationships and bids for contracts submitted prior to the acquisition date, as well as interests in leased properties, fixed assets, working capital and intangible assets. This acquisition strengthens our position in the administration of federal government programs. This business has been integrated into our U.S. Federal Services Segment. The contract provides for a purchase price of $400.0 million adjusted for the net working capital in excess of or less than an agreed upon target representing an estimate of normalized net working capital. The estimated working capital balance at November 16, 2018, was higher than this estimate and, accordingly, we incurred an estimated purchase price of $430.6 million. We anticipate finalizing the purchase price during the third quarter of fiscal year 2019. To fund the acquisition, we utilized $150 million of borrowings from our credit facility with the balance from our cash on our balance sheet. As part of the acquisition, we incurred acquisition-related expenses, including legal, accounting and other consultant services. During the fiscal year ended September 30, 2018, we incurred $0.5 million of such costs; during the six months ended March 31, 2019, we incurred an additional $2.7 million. We also incurred additional investing cash outflows of $4.5 million from the acquisition of software licenses needed for newly-acquired employees. We considered this transaction to be an acquisition of a business. At this time, we are in the process of finalizing our valuation of the acquired assets and assumed liabilities , including our analysis of the value of the intangible assets acquired and the tax effects of the acquisition. In addition, we continue to look for potential assets or liabilities which existed at the acquisition date. Our current estimate of the allocation of the purchase price, updated from December 31, 201 8 , is shown below. (dollars in thousands) Estimated purchase price allocation at December 31, 2018 Adjustments Estimated purchase price allocation at March 31, 2019 Estimated cash consideration $ 429,335 $ 1,238 $ 430,573 Billed and unbilled receivables $ 145,319 $ (3,450) $ 141,869 Property and equipment 6,454 — 6,454 Other assets 681 3,412 4,093 Intangible assets 122,300 — 122,300 Total identifiable assets acquired 274,754 (38) 274,716 Accounts payable and other liabilities 33,296 (1,091) 32,205 Net identifiable assets acquired 241,458 1,053 242,511 Goodwill 187,877 185 188,062 Net assets acquired $ 429,335 $ 1,238 $ 430,573 The fair value of the goodwill is estimated to be $188.1 million. This goodwill represents the value of the assembled workforce and the enhanced knowledge, capabilities and qualifications held by the business. This goodwill balance is expected to be deductible for tax purposes. The fair value of the intangible assets acquired is estimated to be $122.3 million, representing customer relationships. We have assumed a useful economic life of ten years for most contracts, representing our expectation of the period over which we will receive the benefit. Typically, our customer relationships are based upon the provision of services to our customers on a daily or monthly basis and, although contracts are frequently rebid, we believe that an incumbent provider typically enjoys significant competitive advantages. In reviewing the contract portfolio, we allocated a shorter life to a contract which pertains to the United States decennial census. This contract requires managing a significant ramp-up and ramp-down of work over the census cycle. As much of the benefit from this contract is anticipated to occur within the next two years, we have utilized a shorter asset life for this customer relationship. The average weighted intangible asset life is 7.6 years and amortization will be recorded on a straight-line basis. (dollars in thousands) Useful life Fair value Customer relationships - all contracts except U.S. Census 10 years $ 85,300 Customer relationships - U.S. Census 2 years 37,000 Total intangible assets $ 122,300 The contribution of the acquired business for the three and six months ended March 31, 2019 , is shown below. Acquisition Contribution for (dollars in thousands) Three Months Ended Six Months Ended Revenue $ 176,003 $ 277,266 Gross profit 32,672 51,620 The following table presents certain results for the three and six months ended March 31, 2019 and 2018, as though the acquisition had occurred on October 1, 2017. This pro forma information is presented for information only and is not necessarily indicative of the results if the acquisition had taken place on that date. 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. Pro forma results for the three months ended March 31, Pro forma results for the six months ended March 31, (dollars in thousands, except per share amounts) 2019 2018 2019 2018 Revenue $ 736,520 $ 770,590 $ 1,499,568 $ 1,592,723 Net income 61,766 56,803 120,962 119,991 Basic earnings per share attributable to MAXIMUS 0.96 0.87 1.88 1.81 Diluted earnings per share attributed to MAXIMUS 0.96 0.86 1.87 1.80 Changes in goodwill for the six months ended March 31, 2019, were as follows: (dollars in thousands) U.S. Health & Human Services U.S. Federal Services Outside the United States Total Balance as of September 30, 2018 $ 139,588 $ 228,148 $ 32,146 $ 399,882 Estimated effect of the acquisition of citizen engagement centers business 20,071 165,498 2,493 188,062 Foreign currency translation — — (193) (193) Balance as of March 31, 2019 $ 159,659 $ 393,646 $ 34,446 $ 587,751 Although the citizen engagement center business has been integrated into our U.S. Federal Services Segment, the acquisition provides benefits across all three segments. The most significant contracts acquired are cost-plus arrangements, which allow us to recover a greater share of our shared corporate overhead. Accordingly, we have allocated the goodwill based on an estimate of the relative fair value of the benefit to each segment. With the reorganization of the business on October 1, 2018, we reallocated our goodwill to our new reporting segments. This reallocation was based upon the relative fair values of the operating segments on the date of the reorganization. There have been no impairment charges to our goodwill. The following table sets forth the components of intangible assets (in thousands): As of March 31, 2019 As of September 30, 2018 (dollars in thousands) Cost Accumulated Intangible Cost Accumulated Intangible Customer contracts and relationships $ 248,770 $ 54,838 $ 193,932 $ 129,113 $ 42,683 $ 86,430 Technology based intangible assets 5,648 4,267 1,381 5,750 4,212 1,538 Trademarks and trade names 4,480 4,439 41 4,496 4,429 67 Total $ 258,898 $ 63,544 $ 195,354 $ 139,359 $ 51,324 $ 88,035 As of March 31, 2019, our intangible assets have a weighted average remaining life of 9.2 years, comprising 9.2 years for customer contracts and relationships, 4.6 years for technology-based intangible assets, and 0.8 years for trademarks and trade names. The estimated future amortization expense for the remainder of the current fiscal year and the next five fiscal years for the intangible assets held by the Company as of March 31, 2019, is as follows (in thousands): Six months ended September 30, 2019 $ 18,044 2020 35,307 2021 18,258 2022 15,884 2023 15,785 2024 15,662 |
Income Tax
Income Tax | 6 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax Our effective income tax rate for the three and six months ended March 31, 2019 was 23.4% and 24.8% , respectively, and 24.1% and 24.5% for the comparable prior year periods, respectively. Our results for the three and six months ended March 31 , 201 8 , included the estimated effects of the Tax Cuts and Jobs Act (the Act), which was signed on December 22, 2017, and was effective from January 1, 2018. We recorded a one-time "toll tax" on our undistributed and previously untaxed earnings in foreign locations of approximately $9.5 million and a one-time benefit from the reduction of our deferred tax liabilities of $10.6 million. We have completed our analysis of these items and have not recorded any adjustments in this period. During the six months ended March 31, 2019 and 2018, we made income tax payments of $37.2 million and $28.5 million, respectively. |
Recent accounting pronouncement
Recent accounting pronouncements | 6 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires that assets and liabilities arising under leases be recognized on the balance sheet. The standard also requires additional quantitative and qualitative disclosures that provide the amount, timing and uncertainty of cash flows relating to lease arrangements. This standard is effective for us on October 1, 2019. We will adopt this standard using a modified retrospective approach. This approach also provides practical expedients related to leases that commenced prior to the effective date and allows the use of hindsight when evaluating lease options . We expect that upon adoption we will recognize a material right-of-use asset and lease liability on our balance sheet. We do not expect the standard to have a material impact on our cash flows or results of operations. |
Subsequent event
Subsequent event | 6 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventsOn April 5, 2019, our Board of Directors declared a quarterly cash dividend of $0.25 for each share of our common stock outstanding. The dividend is payable on May 31, 2019, to shareholders of record on May 15, 2019. |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Policies) | 6 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. As permitted by these instructions, they do not include all of the information and notes required by generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. All intercompany balances and transactions have been eliminated in consolidation. The results of operations for the three and six months ended March 31, 2019, are not necessarily indicative of the results that may be expected for the full fiscal year. The balance sheet at September 30, 2018, has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. |
Reclassification | Certain financial results have been reclassified to conform with our current period presentation. • Our consolidated statement of cash flows for the six months ended March 31, 2018, includes a reclassification to reflect the effect of new accounting guidance. • Our consolidated b |
Use of Estimates | The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities and the reported amounts of revenue and expenses. On an ongoing basis, we evaluate our estimates including those related to revenue recognition and cost estimation on certain contracts, the realizability of goodwill and amounts related to income taxes, certain accrued liabilities and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. |
Segments | As previously reported, effective October 1, 2018, our Chief Executive Officer reorganized our reporting segments based on the way that management intends to allocate resources, manage performance and evaluate results. This reorganization of segments responds to recent changes in the markets in which we operate, the increasing integration of health and human services programs worldwide and the evolving needs of our government clients as they aim to deliver services in a more holistic manner to their citizens. Our results for the three and six months ended March 31, 2018 , were recast to conform with these new segments. See "Note 2. Segment I nformation" for more details of this change. |
Revenue Recognition | We adopted Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) on October 1, 2018, using the modified retrospective method and, accordingly, we recognized the cumulative effect of adoption as an adjustment of $32.9 million to our opening retained earnings balance on October 1, 2018. We applied this standard only to contracts that had not been completed as of the date of adoption. For contracts that had been modified prior to October 1, 2018, we calculated the cumulative effect of Topic 606 on each contract based upon the aggregate effect of all of the modifications at that date. |
New accounting pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases . The new standard requires that assets and liabilities arising under leases be recognized on the balance sheet. The standard also requires additional quantitative and qualitative disclosures that provide the amount, timing and uncertainty of cash flows relating to lease arrangements. This standard is effective for us on October 1, 2019. We will adopt this standard using a modified retrospective approach. This approach also provides practical expedients related to leases that commenced prior to the effective date and allows the use of hindsight when evaluating lease options . We expect that upon adoption we will recognize a material right-of-use asset and lease liability on our balance sheet. We do not expect the standard to have a material impact on our cash flows or results of operations. |
Organization and Basis of Pre_3
Organization and Basis of Presentation (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The adoption of Topic 606 resulted in the following changes to our opening balance sheet: (dollars in thousands) Balance at September 30, 2018 Adjustments due to adoption of new standard Opening balance at October 1, 2018 Assets Accounts receivable - unbilled $ 31,536 $ 35,414 $ 66,950 Deferred income taxes 6,834 (6,625) 209 Liabilities and shareholders' equity Deferred revenue - current 51,182 (11,767) 39,415 Deferred income taxes - long-term 26,377 7,074 33,451 Retained earnings 633,281 32,929 666,210 Noncontrolling interests 2,552 553 3,105 The table below shows the effects of the adoption of Topic 606 on our consolidated statement of operations for the three and six months ended March 31, 2019. Three months ended March 31, 2019 Six months ended March 31, 2019 (dollars in thousands) Balance under previous accounting guidance Adjustments due to adoption of new standard Balance as reported Balance under previous accounting guidance Adjustments due to adoption of new standard Balance as reported Revenue $ 735,487 $ 1,033 $ 736,520 $ 1,399,372 $ 1,767 $ 1,401,139 Income before income taxes 79,646 1,033 80,679 154,468 1,767 156,235 Provision for income taxes 18,628 285 18,913 38,467 279 38,746 Net income 61,018 748 61,766 116,001 1,488 117,489 (Loss)/income attributable to noncontrolling interests (328) 170 (158) (838) 490 (348) Net income attributable to MAXIMUS $ 61,346 $ 578 $ 61,924 $ 116,839 $ 998 $ 117,837 The effect on our balance sheet would have been as follows: (dollars in thousands) Balance at March 31, 2019, under previous accounting guidance Adjustments due to adoption of new standard Balance at March 31, 2019, as reported Assets Accounts receivable - unbilled $ 95,796 $ 35,454 $ 131,250 Deferred income taxes 6,858 (6,649) 209 Liabilities and shareholders' equity Deferred revenue - current 51,963 (12,748) 39,215 Deferred income taxes - long-term 43,957 7,103 51,060 Accumulated other comprehensive loss (38,617) (519) (39,136) Retained earnings 671,897 33,927 705,824 Noncontrolling interests 1,581 1,043 2,624 Additional information and disclosures relating to this change are included within "Note 3. Revenue recognition." Statement of cash flows We adopted ASU No. 2016-15 Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments and ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash o n October 1, 2018, using the retrospective method. The most notable change relates to the treatment of balances we consider to be "restricted cash." Restricted cash represents funds which are held in our bank accounts but which we are precluded from using for general business needs through contractual requirements; these requirements include serving as collateral for lease, credit card or letter of credit arrangements or where we hold funds on behalf of clients. As we did not consider these restricted cash balances to be cash or cash equivalents, we did not previously include them within our cash flow statement except where restrictions over cash were imposed or lapsed. Beginning on October 1, 2018, we are required to include movements in cash, cash equivalents and restricted cash within our consolidated statements of cash flows. Accordingly, we have presented our consolidated statement of cash flows using the new rules for all periods shown. Our balances for cash, cash equivalents and restricted cash are as follows: Balance as of (dollars in thousands) March 31, 2019 September 30, 2018 March 31, 2018 September 30, 2017 Cash and cash equivalents $ 46,799 $ 349,245 $ 253,227 $ 166,252 Restricted cash (recorded within "other current assets") 7,679 7,314 13,908 13,475 Cash, cash equivalents and restricted cash $ 54,478 $ 356,559 $ 267,135 $ 179,727 Consolidated Statements of Changes in Shareholders' Equity In August 2018, the United States Securities and Exchange Commission (SEC) adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of shareholders' equity presented in the balance sheet must be provided in a note or separate statement. The amendments became effective on November 5, 2018, and did not have a material effect on the Company's consolidated financial statements for fiscal year 2019. We have adopted these changes to the Consolidated Statements of Changes in Shareholders’ Equity in this filing. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of financial information for each of the Company's business segments | The table below provides certain financial information for each of our business segments. As noted in "Note 1. Organization and Basis of Presentation," we have made changes to our business segments in fiscal year 2019. Accordingly, the comparative results shown for the three and six months ended March 31, 2018 , are presented differently from those shown in previous filings. From October 1, 2018, we operated 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 work , and related consulting work for U.S. state and local government programs. These services support a variety of programs including Medicaid, the Children’s Health Insurance Program, the Affordable Care Act and Temporary Assistance for Needy Families. • 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 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 for welfare-to-work services and other related services. We support programs and deliver services in the United Kingdom, including the Health Assessment Advisory Service, 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; Saudi Arabia and Singapore. Three Months Ended March 31, Six Months Ended March 31, (dollars in thousands) 2019 % (1) 2018 % (1) 2019 % (1) 2018 % (1) Revenue: U.S. Health & Human Services $ 290,737 $ 306,249 $ 584,950 $ 610,490 U.S. Federal Services 289,736 116,327 506,723 249,310 Outside the U.S. 156,047 190,211 309,466 376,135 Total $ 736,520 $ 612,787 $ 1,401,139 $ 1,235,935 Gross profit: U.S. Health & Human Services $ 86,260 29.7% $ 86,586 28.3% $ 174,291 29.8% $ 170,817 28.0% U.S. Federal Services 60,696 20.9% 27,374 23.5% 108,681 21.4% 60,732 24.4% Outside the U.S. 22,466 14.4% 34,843 18.3% 45,715 14.8% 69,214 18.4% Total $ 169,422 23.0% $ 148,803 24.3% $ 328,687 23.5% $ 300,763 24.3% Selling, general & administrative expense: U.S. Health & Human Services $ 29,400 10.1% $ 36,616 12.0% $ 61,539 10.5% $ 71,421 11.7% U.S. Federal Services 31,104 10.7% 17,540 15.1% 57,736 11.4% 34,188 13.7% Outside the U.S. 17,992 11.5% 18,403 9.7% 36,800 11.9% 36,509 9.7% Restructuring costs — NM 2,320 NM — NM 2,320 NM Other (394) NM — NM 1,698 NM — NM Total $ 78,102 10.6% $ 74,879 12.2% $ 157,773 11.3% $ 144,438 11.7% Operating income: U.S. Health & Human Services $ 56,860 19.6% $ 49,970 16.3% $ 112,752 19.3% $ 99,396 16.3% U.S. Federal Services 29,592 10.2% 9,834 8.5% 50,945 10.1% 26,544 10.6% Outside the U.S. 4,474 2.9% 16,440 8.6% 8,915 2.9% 32,705 8.7% Amortization of intangible assets (9,519) NM (2,603) NM (14,977) NM (5,321) NM Restructuring costs (2) — NM (2,320) NM — NM (2,320) NM Other (3) 394 NM — NM (1,698) NM — NM Total $ 81,801 11.1% $ 71,321 11.6% $ 155,937 11.1% $ 151,004 12.2% (1) Percentage of respective segment revenue. Percentages not considered meaningful are marked “NM.” (2) During fiscal year 2018, we incurred costs in restructuring our United Kingdom business. (3) Other selling, general & administrative expenses includes credits and costs not directly allocated to a particular segment. In the six month periods ended March 31, 2019, these include $2.7 million of costs directly related to the acquisition of the citizen engagement centers business. Refer to " Note 5. Acquisition of Citizen Engagement Centers Business " |
Schedule of identifiable assets by segment | Identifiable assets for the segments are shown below (in thousands): March 31, 2019 September 30, 2018 U.S. Health & Human Services $ 478,584 $ 442,063 U.S. Federal Services 837,844 375,807 Outside the U.S. 224,274 184,872 Corporate 147,014 459,258 Total $ 1,687,716 $ 1,462,000 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | By operating segment and service (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Program administration $ 219,732 $ 438,705 Assessments and appeals 33,331 70,552 Workforce and children services 23,898 47,801 Other 13,776 27,892 Total U.S. Health and Human Services $ 290,737 584,950 Program administration $ 209,996 $ 350,117 Technology solutions 37,993 76,876 Assessments and appeals 41,747 79,730 Total U.S. Federal Services $ 289,736 506,723 Workforce and children services $ 69,759 $ 143,037 Assessments and appeals 67,771 130,081 Program administration 15,922 31,242 Other 2,595 5,106 Total Outside the U.S. $ 156,047 $ 309,466 Total revenue $ 736,520 $ 1,401,139 By contract type (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 Performance-based $ 261,592 $ 574,479 Cost-plus 298,133 473,431 Fixed price 139,871 287,022 Time and materials 36,924 66,207 Total revenue $ 736,520 $ 1,401,139 By customer type (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 New York State government agencies $ 89,858 $ 181,570 Other U.S. state government agencies 197,870 396,772 Total U.S. state government agencies $ 287,728 $ 578,342 United States Federal Government agencies 270,623 468,901 International government agencies 146,292 289,073 Other, including local municipalities and commercial customers 31,877 64,823 Total revenue $ 736,520 $ 1,401,139 By geography (dollars in thousands) Three Months Ended March 31, 2019 Six Months Ended March 31, 2019 United States of America $ 580,473 $ 1,091,673 United Kingdom 78,334 151,752 Australia 50,997 104,370 Rest of world 26,716 53,344 Total revenue $ 736,520 $ 1,401,139 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of the components of basic and diluted earnings per share | The weighted average number of shares outstanding used to compute earnings per share was as follows: Three Months Ended March 31, Six Months Ended March 31, (shares in thousands) 2019 2018 2019 2018 Basic weighted average shares outstanding 64,369 65,856 64,600 65,857 Dilutive effect of unvested RSUs 274 412 217 366 Denominator for diluted earnings per share 64,643 66,268 64,817 66,223 |
Acquisition of Citizen Engage_2
Acquisition of Citizen Engagement Centers Business (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | At this time, we are in the process of finalizing our valuation of the acquired assets and assumed liabilities , including our analysis of the value of the intangible assets acquired and the tax effects of the acquisition. In addition, we continue to look for potential assets or liabilities which existed at the acquisition date. Our current estimate of the allocation of the purchase price, updated from December 31, 201 8 , is shown below. (dollars in thousands) Estimated purchase price allocation at December 31, 2018 Adjustments Estimated purchase price allocation at March 31, 2019 Estimated cash consideration $ 429,335 $ 1,238 $ 430,573 Billed and unbilled receivables $ 145,319 $ (3,450) $ 141,869 Property and equipment 6,454 — 6,454 Other assets 681 3,412 4,093 Intangible assets 122,300 — 122,300 Total identifiable assets acquired 274,754 (38) 274,716 Accounts payable and other liabilities 33,296 (1,091) 32,205 Net identifiable assets acquired 241,458 1,053 242,511 Goodwill 187,877 185 188,062 Net assets acquired $ 429,335 $ 1,238 $ 430,573 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | (dollars in thousands) Useful life Fair value Customer relationships - all contracts except U.S. Census 10 years $ 85,300 Customer relationships - U.S. Census 2 years 37,000 Total intangible assets $ 122,300 |
Schedule of Business Acquisition, Pro Forma Information | Pro forma results for the three months ended March 31, Pro forma results for the six months ended March 31, (dollars in thousands, except per share amounts) 2019 2018 2019 2018 Revenue $ 736,520 $ 770,590 $ 1,499,568 $ 1,592,723 Net income 61,766 56,803 120,962 119,991 Basic earnings per share attributable to MAXIMUS 0.96 0.87 1.88 1.81 Diluted earnings per share attributed to MAXIMUS 0.96 0.86 1.87 1.80 |
Schedule of the contribution of acquired business | The contribution of the acquired business for the three and six months ended March 31, 2019 , is shown below. Acquisition Contribution for (dollars in thousands) Three Months Ended Six Months Ended Revenue $ 176,003 $ 277,266 Gross profit 32,672 51,620 |
Schedule of Goodwill | Changes in goodwill for the six months ended March 31, 2019, were as follows: (dollars in thousands) U.S. Health & Human Services U.S. Federal Services Outside the United States Total Balance as of September 30, 2018 $ 139,588 $ 228,148 $ 32,146 $ 399,882 Estimated effect of the acquisition of citizen engagement centers business 20,071 165,498 2,493 188,062 Foreign currency translation — — (193) (193) Balance as of March 31, 2019 $ 159,659 $ 393,646 $ 34,446 $ 587,751 |
Schedule of Finite-Lived Intangible Assets | The following table sets forth the components of intangible assets (in thousands): As of March 31, 2019 As of September 30, 2018 (dollars in thousands) Cost Accumulated Intangible Cost Accumulated Intangible Customer contracts and relationships $ 248,770 $ 54,838 $ 193,932 $ 129,113 $ 42,683 $ 86,430 Technology based intangible assets 5,648 4,267 1,381 5,750 4,212 1,538 Trademarks and trade names 4,480 4,439 41 4,496 4,429 67 Total $ 258,898 $ 63,544 $ 195,354 $ 139,359 $ 51,324 $ 88,035 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for the remainder of the current fiscal year and the next five fiscal years for the intangible assets held by the Company as of March 31, 2019, is as follows (in thousands): Six months ended September 30, 2019 $ 18,044 2020 35,307 2021 18,258 2022 15,884 2023 15,785 2024 15,662 |
Organization and Basis of Pre_4
Organization and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 705,824 | $ 666,210 | $ 633,281 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 33,927 | $ 32,929 |
Organization and Basis of Pre_5
Organization and Basis of Presentation - Changes Due to Adoption of Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
ASSETS | ||||||
Accounts receivable — unbilled | $ 131,250 | $ 131,250 | $ 66,950 | $ 31,536 | ||
Deferred income taxes | 209 | 209 | 209 | 6,834 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Deferred revenue - current | 39,215 | 39,215 | 39,415 | 51,182 | ||
Deferred income taxes - long-term | 51,060 | 51,060 | 33,451 | 26,377 | ||
Retained earnings | 705,824 | 705,824 | 666,210 | 633,281 | ||
Noncontrolling interests | 2,624 | 2,624 | 3,105 | $ 2,552 | ||
Income Statement [Abstract] | ||||||
Revenue | 736,520 | $ 612,787 | 1,401,139 | $ 1,235,935 | ||
Income before income taxes | 80,679 | 72,556 | 156,235 | 152,358 | ||
Provision for income taxes | 18,913 | 17,450 | 38,746 | 37,300 | ||
Net income | 61,766 | 55,106 | 117,489 | 115,058 | ||
(Loss)/income attributable to noncontrolling interests | (158) | (386) | (348) | 475 | ||
Net income attributable to MAXIMUS | 61,924 | $ 55,492 | 117,837 | $ 114,583 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||||
ASSETS | ||||||
Accounts receivable — unbilled | 95,796 | 95,796 | ||||
Deferred income taxes | 6,858 | 6,858 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Deferred revenue - current | 51,963 | 51,963 | ||||
Deferred income taxes - long-term | 43,957 | 43,957 | ||||
Retained earnings | 671,897 | 671,897 | ||||
Noncontrolling interests | 1,581 | 1,581 | ||||
Income Statement [Abstract] | ||||||
Revenue | 735,487 | 1,399,372 | ||||
Income before income taxes | 79,646 | 154,468 | ||||
Provision for income taxes | 18,628 | 38,467 | ||||
Net income | 61,018 | 116,001 | ||||
(Loss)/income attributable to noncontrolling interests | (328) | (838) | ||||
Net income attributable to MAXIMUS | 61,346 | 116,839 | ||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
ASSETS | ||||||
Accounts receivable — unbilled | 35,454 | 35,454 | 35,414 | |||
Deferred income taxes | (6,649) | (6,649) | (6,625) | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Deferred revenue - current | (12,748) | (12,748) | (11,767) | |||
Deferred income taxes - long-term | 7,103 | 7,103 | 7,074 | |||
Retained earnings | 33,927 | 33,927 | 32,929 | |||
Noncontrolling interests | 1,043 | 1,043 | $ 553 | |||
Income Statement [Abstract] | ||||||
Revenue | 1,033 | 1,767 | ||||
Income before income taxes | 1,033 | 1,767 | ||||
Provision for income taxes | 285 | 279 | ||||
Net income | 748 | 1,488 | ||||
(Loss)/income attributable to noncontrolling interests | 170 | 490 | ||||
Net income attributable to MAXIMUS | $ 578 | $ 998 |
Organization and Basis of Pre_6
Organization and Basis of Presentation - Results had former accounting policies been utilized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accounts receivable — unbilled | $ 131,250 | $ 131,250 | $ 66,950 | $ 31,536 | ||
Deferred income taxes | 209 | 209 | 209 | 6,834 | ||
Deferred revenue | 39,215 | 39,215 | 39,415 | 51,182 | ||
Deferred income taxes | 51,060 | 51,060 | 33,451 | 26,377 | ||
Accumulated other comprehensive loss | (39,136) | (39,136) | (36,953) | |||
Retained earnings | 705,824 | 705,824 | 666,210 | 633,281 | ||
Noncontrolling interests | 2,624 | 2,624 | 3,105 | $ 2,552 | ||
Revenue | 736,520 | $ 612,787 | 1,401,139 | $ 1,235,935 | ||
Net income attributable to MAXIMUS | 61,924 | $ 55,492 | 117,837 | $ 114,583 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accounts receivable — unbilled | 35,454 | 35,454 | 35,414 | |||
Deferred income taxes | (6,649) | (6,649) | (6,625) | |||
Deferred revenue | (12,748) | (12,748) | (11,767) | |||
Deferred income taxes | 7,103 | 7,103 | 7,074 | |||
Accumulated other comprehensive loss | (519) | (519) | ||||
Retained earnings | 33,927 | 33,927 | 32,929 | |||
Noncontrolling interests | 1,043 | 1,043 | $ 553 | |||
Revenue | 1,033 | 1,767 | ||||
Net income attributable to MAXIMUS | 578 | 998 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Accounts receivable — unbilled | 95,796 | 95,796 | ||||
Deferred income taxes | 6,858 | 6,858 | ||||
Deferred revenue | 51,963 | 51,963 | ||||
Deferred income taxes | 43,957 | 43,957 | ||||
Accumulated other comprehensive loss | (38,617) | (38,617) | ||||
Retained earnings | 671,897 | 671,897 | ||||
Noncontrolling interests | 1,581 | 1,581 | ||||
Revenue | 735,487 | 1,399,372 | ||||
Net income attributable to MAXIMUS | $ 61,346 | $ 116,839 |
Organization and Basis of Pre_7
Organization and Basis of Presentation - Changes Due to Adoption of Topic 606 for Statements of Cash Flow (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | $ 46,799 | $ 349,245 | ||
Cash, cash equivalents and restricted cash | 54,478 | 356,559 | $ 267,135 | $ 179,727 |
Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 46,799 | 349,245 | 253,227 | 166,252 |
Restricted cash (recorded within "other current assets") | 7,679 | 7,314 | 13,908 | 13,475 |
Cash, cash equivalents and restricted cash | $ 54,478 | $ 356,559 | $ 267,135 | $ 179,727 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Financial information for each of the Company's business segments | |||||
Number of operating segments | segment | 3 | ||||
Revenue: | |||||
Revenue | $ 736,520 | $ 612,787 | $ 1,401,139 | $ 1,235,935 | |
Gross profit: | |||||
Gross profit | $ 169,422 | $ 148,803 | $ 328,687 | $ 300,763 | |
Gross profit (as a percent) | 23.00% | 24.30% | 23.50% | 24.30% | |
Selling, general and administrative expense: | |||||
Selling, general and administrative expenses | $ 78,102 | $ 74,879 | $ 157,773 | $ 144,438 | |
Selling, general, and administrative expense (as a percent) | 10.60% | 12.20% | 11.30% | 11.70% | |
Operating income: | |||||
Operating income | $ 81,801 | $ 71,321 | $ 155,937 | $ 151,004 | |
Operating income (as a percent) | 11.10% | 11.60% | 11.10% | 12.20% | |
Amortization of intangible assets | $ (9,519) | $ (2,603) | $ (14,977) | $ (5,321) | |
General Dynamics Information Technology's Citizen Engagement Centers | |||||
Operating income: | |||||
Business combination, acquisition related costs | 2,700 | $ 500 | |||
Segment Reconciling Items | |||||
Operating income: | |||||
Amortization of intangible assets | (9,519) | (2,603) | (14,977) | (5,321) | |
Restructuring costs | 0 | (2,320) | 0 | (2,320) | |
Other | |||||
Selling, general and administrative expense: | |||||
Selling, general and administrative expenses | (394) | 0 | 1,698 | 0 | |
Operating income: | |||||
Operating income | 394 | 0 | (1,698) | 0 | |
U.S. Health & Human Services | |||||
Revenue: | |||||
Revenue | 290,737 | 584,950 | |||
U.S. Health & Human Services | Operating Segments | |||||
Revenue: | |||||
Revenue | 290,737 | 306,249 | 610,490 | ||
Gross profit: | |||||
Gross profit | $ 86,260 | $ 86,586 | $ 174,291 | $ 170,817 | |
Gross profit (as a percent) | 29.70% | 28.30% | 29.80% | 28.00% | |
Selling, general and administrative expense: | |||||
Selling, general and administrative expenses | $ 29,400 | $ 36,616 | $ 61,539 | $ 71,421 | |
Selling, general, and administrative expense (as a percent) | 10.10% | 12.00% | 10.50% | 11.70% | |
Operating income: | |||||
Operating income | $ 56,860 | $ 49,970 | $ 112,752 | $ 99,396 | |
Operating income (as a percent) | 19.60% | 16.30% | 19.30% | 16.30% | |
U.S. Federal Services | |||||
Revenue: | |||||
Revenue | $ 289,736 | $ 506,723 | |||
U.S. Federal Services | Operating Segments | |||||
Revenue: | |||||
Revenue | 289,736 | $ 116,327 | $ 249,310 | ||
Gross profit: | |||||
Gross profit | $ 60,696 | $ 27,374 | $ 108,681 | $ 60,732 | |
Gross profit (as a percent) | 20.90% | 23.50% | 21.40% | 24.40% | |
Selling, general and administrative expense: | |||||
Selling, general and administrative expenses | $ 31,104 | $ 17,540 | $ 57,736 | $ 34,188 | |
Selling, general, and administrative expense (as a percent) | 10.70% | 15.10% | 11.40% | 13.70% | |
Operating income: | |||||
Operating income | $ 29,592 | $ 9,834 | $ 50,945 | $ 26,544 | |
Operating income (as a percent) | 10.20% | 8.50% | 10.10% | 10.60% | |
Outside the U.S. | |||||
Revenue: | |||||
Revenue | $ 156,047 | $ 309,466 | |||
Outside the U.S. | Operating Segments | |||||
Revenue: | |||||
Revenue | 156,047 | $ 190,211 | $ 376,135 | ||
Gross profit: | |||||
Gross profit | $ 22,466 | $ 34,843 | $ 45,715 | $ 69,214 | |
Gross profit (as a percent) | 14.40% | 18.30% | 14.80% | 18.40% | |
Selling, general and administrative expense: | |||||
Selling, general and administrative expenses | $ 17,992 | $ 18,403 | $ 36,800 | $ 36,509 | |
Selling, general, and administrative expense (as a percent) | 11.50% | 9.70% | 11.90% | 9.70% | |
Operating income: | |||||
Operating income | $ 4,474 | $ 16,440 | $ 8,915 | $ 32,705 | |
Operating income (as a percent) | 2.90% | 8.60% | 2.90% | 8.70% |
Identifiable assets for segment
Identifiable assets for segments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Financial information for each of the Company's business segments | ||
Assets | $ 1,687,716 | $ 1,462,000 |
Other | ||
Financial information for each of the Company's business segments | ||
Assets | 147,014 | 459,258 |
U.S. Health & Human Services | Operating Segments | ||
Financial information for each of the Company's business segments | ||
Assets | 478,584 | 442,063 |
U.S. Federal Services | Operating Segments | ||
Financial information for each of the Company's business segments | ||
Assets | 837,844 | 375,807 |
Outside the U.S. | Operating Segments | ||
Financial information for each of the Company's business segments | ||
Assets | $ 224,274 | $ 184,872 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 736,520 | $ 612,787 | $ 1,401,139 | $ 1,235,935 |
United States of America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 580,473 | 1,091,673 | ||
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 78,334 | 151,752 | ||
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 50,997 | 104,370 | ||
Rest of world | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 26,716 | 53,344 | ||
Total U.S. state government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 287,728 | 578,342 | ||
New York State government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 89,858 | 181,570 | ||
Other U.S. state government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 197,870 | 396,772 | ||
United States Federal Government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 270,623 | 468,901 | ||
International government agencies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 146,292 | 289,073 | ||
Other, including local municipalities and commercial customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,877 | 64,823 | ||
Performance-based | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 261,592 | 574,479 | ||
Cost-plus | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 298,133 | 473,431 | ||
Fixed price | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 139,871 | 287,022 | ||
Time and materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 36,924 | 66,207 | ||
U.S. Health & Human Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 290,737 | 584,950 | ||
U.S. Federal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 289,736 | 506,723 | ||
Outside the U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 156,047 | 309,466 | ||
Program administration | U.S. Health & Human Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 219,732 | 438,705 | ||
Program administration | U.S. Federal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 209,996 | 350,117 | ||
Program administration | Outside the U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15,922 | 31,242 | ||
Assessments and appeals | U.S. Health & Human Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,331 | 70,552 | ||
Assessments and appeals | U.S. Federal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 41,747 | 79,730 | ||
Assessments and appeals | Outside the U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 67,771 | 130,081 | ||
Workforce and children services | U.S. Health & Human Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 23,898 | 47,801 | ||
Workforce and children services | Outside the U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 69,759 | 143,037 | ||
Other | U.S. Health & Human Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,776 | 27,892 | ||
Other | Outside the U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,595 | 5,106 | ||
Technology solutions | U.S. Federal Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 37,993 | $ 76,876 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, revenue recognized | $ 23,000 | $ 32,000 |
Cumulative catch-up adjustment to revenue from change in estimates | (8,000) | |
Deferred contract costs | 8,200 | 8,200 |
Amortization of deferred contract costs | $ 1,500 | $ 2,800 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 409 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 50.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding (in shares) | 64,369 | 65,856 | 64,600 | 65,857 |
Dilutive effect of employee stock options and unvested RSUs (in shares) | 274 | 412 | 217 | 366 |
Denominator for diluted earnings per share | 64,643 | 66,268 | 64,817 | 66,223 |
Acquisition of Citizen Engage_3
Acquisition of Citizen Engagement Centers Business - Narrative (Details) - USD ($) | Nov. 16, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 |
Business Acquisition [Line Items] | ||||||
Cash payment to acquire business | $ 421,809,000 | $ 157,000 | ||||
Payments to acquire software licenses | 18,541,000 | $ 13,175,000 | ||||
Goodwill | $ 587,751,000 | 587,751,000 | $ 399,882,000 | |||
Goodwill, impairment loss | 0 | |||||
General Dynamics Information Technology's Citizen Engagement Centers | ||||||
Business Acquisition [Line Items] | ||||||
Cash payment to acquire business | $ 400,000,000 | |||||
Estimated cash consideration | 430,573,000 | $ 429,335,000 | ||||
Business combination, acquisition related costs | 2,700,000 | $ 500,000 | ||||
Payments to acquire software licenses | 4,500,000 | |||||
Goodwill | 188,100,000 | 188,062,000 | 187,877,000 | 188,062,000 | ||
Intangible assets | 122,300,000 | $ 122,300,000 | $ 122,300,000 | $ 122,300,000 | ||
Average weighted intangible assets useful life (years) | 7 years 7 months 6 days | |||||
General Dynamics Information Technology's Citizen Engagement Centers | Line of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from long-term lines of credit | $ 150,000,000 | |||||
Weighted Average | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 9 years 2 months 12 days | |||||
Customer contracts and relationships | Weighted Average | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 9 years 2 months 12 days | |||||
Technology-based Rights | Weighted Average | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 4 years 7 months 6 days | |||||
Trademarks and trade names | Weighted Average | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 9 months 18 days | |||||
Customer relationships - all contracts except U.S. Census | General Dynamics Information Technology's Citizen Engagement Centers | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 10 years | |||||
Customer relationships - U.S. Census | General Dynamics Information Technology's Citizen Engagement Centers | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 2 years |
Acquisition of Citizen Engage_4
Acquisition of Citizen Engagement Centers Business - Schedule of Asset Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Nov. 16, 2018 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 587,751 | $ 399,882 | ||
General Dynamics Information Technology's Citizen Engagement Centers | ||||
Business Acquisition [Line Items] | ||||
Estimated cash consideration | 430,573 | $ 429,335 | ||
Measurement period adjustments, consideration transferred | 1,238 | |||
Billed and unbilled receivables | 141,869 | 145,319 | ||
Measurement period adjustments, billed and unbilled receivables | (3,450) | |||
Property and equipment | 6,454 | 6,454 | ||
Measurement period adjustment, property, plant, and equipment | 0 | |||
Other assets | 4,093 | 681 | ||
Measurement period adjustment, other assets | 3,412 | |||
Intangible assets | 122,300 | 122,300 | $ 122,300 | |
Measurement period adjustment, intangible assets | 0 | |||
Total identifiable assets acquired | 274,716 | 274,754 | ||
Measurement period adjustment, total identifiable assets acquired | (38) | |||
Accounts payable and other liabilities | 32,205 | 33,296 | ||
Measurement period adjustment, accounts payable and other liabilities | (1,091) | |||
Net identifiable assets acquired | 242,511 | 241,458 | ||
Measurement period adjustment, net identifiable assets acquired | 1,053 | |||
Goodwill | 188,062 | 187,877 | $ 188,100 | |
Measurement period adjustments, goodwill | 185 | |||
Net assets acquired | 430,573 | $ 429,335 | ||
Measurement period adjustment, net assets aquired | $ 1,238 |
Acquisition of Citizen Engage_5
Acquisition of Citizen Engagement Centers Business - Schedule of the Valuation of the Intangible Assets Acquired (Details) - General Dynamics Information Technology's Citizen Engagement Centers $ in Thousands | 6 Months Ended |
Mar. 31, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Fair value | $ 122,300 |
Customer relationships - all contracts except U.S. Census | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 10 years |
Fair value | $ 85,300 |
Customer relationships - U.S. Census | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life | 2 years |
Fair value | $ 37,000 |
Acquisition of Citizen Engage_6
Acquisition of Citizen Engagement Centers Business - Contribution of the acquired business (Details) - General Dynamics Information Technology's Citizen Engagement Centers - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | |
Business Acquisition [Line Items] | ||
Revenue contributed from acquired business | $ 176,003 | $ 277,266 |
Gross profit contributed from acquired business | $ 32,672 | $ 51,620 |
Acquisition of Citizen Engage_7
Acquisition of Citizen Engagement Centers Business - Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Business Combinations [Abstract] | ||||
Revenue | $ 736,520 | $ 770,590 | $ 1,499,568 | $ 1,592,723 |
Net income | $ 61,766 | $ 56,803 | $ 120,962 | $ 119,991 |
Basic earnings per share attributable to MAXIMUS (in dollars per share) | $ 0.96 | $ 0.87 | $ 1.88 | $ 1.81 |
Diluted earnings per share attributed to MAXIMUS (in dollars per share) | $ 0.96 | $ 0.86 | $ 1.87 | $ 1.80 |
Acquisition of Citizen Engage_8
Acquisition of Citizen Engagement Centers Business - Changes in Goodwill (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 399,882 |
Estimated effect of the acquisition of citizen engagement centers business | 188,062 |
Foreign currency translation | (193) |
Balance at the end of the period | 587,751 |
U.S. Health & Human Services | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 139,588 |
Estimated effect of the acquisition of citizen engagement centers business | 20,071 |
Foreign currency translation | 0 |
Balance at the end of the period | 159,659 |
U.S. Federal Services | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 228,148 |
Estimated effect of the acquisition of citizen engagement centers business | 165,498 |
Foreign currency translation | 0 |
Balance at the end of the period | 393,646 |
Outside the U.S. | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 32,146 |
Estimated effect of the acquisition of citizen engagement centers business | 2,493 |
Foreign currency translation | (193) |
Balance at the end of the period | $ 34,446 |
Acquisition of Citizen Engage_9
Acquisition of Citizen Engagement Centers Business - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 258,898 | $ 139,359 |
Accumulated Amortization | 63,544 | 51,324 |
Intangible Assets, net | 195,354 | 88,035 |
Customer contracts and relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 248,770 | 129,113 |
Accumulated Amortization | 54,838 | 42,683 |
Intangible Assets, net | 193,932 | 86,430 |
Technology based intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,648 | 5,750 |
Accumulated Amortization | 4,267 | 4,212 |
Intangible Assets, net | 1,381 | 1,538 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,480 | 4,496 |
Accumulated Amortization | 4,439 | 4,429 |
Intangible Assets, net | $ 41 | $ 67 |
Acquisition of Citizen Engag_10
Acquisition of Citizen Engagement Centers Business - Estimated Future Amortization Expense For Intangible Assets (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Business Combinations [Abstract] | |
Six months ended September 30, 2019 | $ 18,044 |
2020 | 35,307 |
2021 | 18,258 |
2022 | 15,884 |
2023 | 15,785 |
2024 | $ 15,662 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate reconciliation, percent | 23.40% | 24.10% | 24.80% | 24.50% |
Tax cuts and jobs act of 2017, transition tax for accumulated foreign earnings income tax expense (benefit) | $ 9.5 | $ 9.5 | $ 9.5 | |
Tax cuts and jobs act of 2017, change in tax rate, deferred tax liability, income tax (expense) benefit | $ (10.6) | 10.6 | (10.6) | |
Income taxes paid | $ 37.2 | $ 28.5 |
Supplemental disclosures (Detai
Supplemental disclosures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Payments for Repurchase of Equity [Abstract] | ||||
Repurchases of common stock | $ 4,084,000 | $ 45,414,000 | $ 1,038,000 | |
Line of Credit Facility [Abstract] | ||||
Long-term debt | 75,295,000 | 75,295,000 | $ 374,000 | |
Loss Contingency, Information about Litigation Matters [Abstract] | ||||
Loss contingency, maximum potential loss | 31,000,000 | 31,000,000 | ||
Line of Credit | ||||
Line of Credit Facility [Abstract] | ||||
Long-term debt | 75,000,000 | 75,000,000 | ||
Credit Agreement Expiring 2022 | ||||
Debt Instrument, Periodic Payment [Abstract] | ||||
Interest paid | 1,800,000 | $ 100,000 | ||
Mutual Fund | ||||
Retirement Benefits [Abstract] | ||||
Investments in mutual funds | $ 20,000,000 | $ 20,000,000 | ||
Restricted Stock Units (RSUs) | ||||
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||||
Granted (in shares) | 346,000 | |||
Vesting period | 5 years | |||
Restricted Stock Units (RSUs) | Member of Board of Directors | ||||
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||||
Vesting period | 1 year | |||
Common Stock | ||||
Payments for Repurchase of Equity [Abstract] | ||||
Common shares purchased | 62,000 | 716,000 | 17,000 | |
Stock Repurchase Program, June 2018 | ||||
Payments for Repurchase of Equity [Abstract] | ||||
Stock repurchase programs, authorized amount | $ 200,000,000 | $ 200,000,000 | ||
Stock Repurchase Program, June 2018 | Common Stock | ||||
Payments for Repurchase of Equity [Abstract] | ||||
Common shares purchased | 700,000 | |||
Repurchases of common stock | $ (45,400,000) | |||
Stock Repurchase Program, August 2015 | Common Stock | ||||
Payments for Repurchase of Equity [Abstract] | ||||
Common shares purchased | 17,000 | |||
Repurchases of common stock | $ 1,000,000 | |||
Stock Repurchase Authorized Program, June 2018 | ||||
Payments for Repurchase of Equity [Abstract] | ||||
Amount remaining available for future stock repurchases | $ 147,400,000 | $ 147,400,000 |
Subsequent event (Details)
Subsequent event (Details) - USD ($) $ / shares in Units, $ in Thousands | May 31, 2019 | Apr. 05, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Subsequent Event [Line Items] | ||||
Payments of ordinary dividends | $ 31,983 | $ 5,865 | ||
Scenario, Forecast | ||||
Subsequent Event [Line Items] | ||||
Payments of ordinary dividends | $ 16,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividend declared date | Apr. 5, 2019 | |||
Cash dividend declared (in dollars per share) | $ 0.25 | |||
Dividends payable date | May 31, 2019 | |||
Dividends payable date of record | May 15, 2019 |
Uncategorized Items - mms-20190
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 33,482,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 32,929,000 |
Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 553,000 |