Business segments

12 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Business segments

Business segments

We have three business segments, Health Services, U.S. Federal Services and Human Services. These segments reflect the way in which we organize and manage the business and is consistent with the manner in which our Chief Executive Officer operates and reviews the results of the business.

Expenses which are not specifically included in the segments are included in other categories, including amortization of intangible assets, the direct costs of acquisitions and the gain on sale of the K-12 Education business. These costs are excluded from measuring each segment's operating performance.

The results of these segments for the three years ended September 30, 2016 are shown below (in thousands).

	Year ended September 30,
	2016			2015			2014
Revenue:
Health Services	$	1,298,304		$	1,109,238		$	906,650
U.S. Federal Services	591,728			502,484			341,840
Human Services	513,328			488,099			452,422
Total	$	2,403,360		$	2,099,821		$	1,700,912
Gross Profit:
Health Services	$	292,181		$	254,108		$	213,728
U.S. Federal Services	138,168			118,646			110,793
Human Services	131,842			139,963			127,602
Total	$	562,191		$	512,717		$	452,123
Selling, general and administrative expense:
Health Services	$	107,155		$	99,815		$	98,172
U.S. Federal Services	74,792			59,252			47,695
Human Services	84,157			79,719			74,444
Other	2,155			6			614
Total	$	268,259		$	238,792		$	220,925
Operating income:
Health Services	$	185,026		$	154,293		$	115,556
U.S. Federal Services	63,376			59,394			63,098
Human Services	47,685			60,244			53,158
Amortization of intangible assets	(13,377		)	(9,348		)	(5,890		)
Acquisition-related expenses	(832		)	(4,745		)	—
Gain on sale of a business	6,880			—			—
Other	(2,155		)	(6		)	(614		)
Total	$	286,603		$	259,832		$	225,308
Operating income as a percentage of revenue:
Health Services	14.3		%	13.9		%	12.7		%
U.S. Federal Services	10.7		%	11.8		%	18.5		%
Human Services	9.3		%	12.3		%	11.7		%
Total	11.9		%	12.4		%	13.2		%
Depreciation and amortization:
Health Services	$	31,916		$	27,694		$	23,994
U.S. Federal Services	9,953			10,363			9,557
Human Services	16,535			8,792			9,227
Total	$	58,404		$	46,849		$	42,778

Acquisition-related expenses are costs directly incurred from the purchases of Ascend Management Innovations, LLC (Ascend) and Assessments Australia in 2016 and Acentia, LLC (Acentia) and Remploy in 2015, as well as any unsuccessful transactions.

We principally operate in the U.S., the U.K., Australia, Canada and Saudi Arabia.

Our revenue was distributed as follows (in thousands):

	Year ended September 30,
	2016		2015		2014
United States	$	1,721,261	$	1,559,769	$	1,306,026
United Kingdom	384,649		267,702		128,363
Australia	200,539		178,167		170,727
Rest of World	96,911		94,183		95,796
Total	$	2,403,360	$	2,099,821	$	1,700,912

Identifiable assets for the segments are shown below (in thousands):

	Year Ended September 30,
	2016		2015
Health Services	$	543,361	$	482,560
U.S. Federal Services	440,006		441,521
Human Services	153,141		186,406
Corporate/Other	212,311		161,071
Total	$	1,348,819	$	1,271,558

Our long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands):

	Year Ended September 30,
	2016		2015
United States	$	118,751	$	120,130
Australia	38,852		33,591
Canada	16,209		19,720
United Kingdom	11,086		16,141
Rest of World	117		41
Total	$	185,015	$	189,623