Segment Information

9 Months Ended

Jun. 30, 2019

The table below provides certain financial information for each of our business segments.

As noted in "Note 1. Organization and Basis of Presentation," we made changes to our business segments in fiscal year 2019. Accordingly, the comparative results shown for the three and nine months ended June 30, 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 June 30,											Nine Months Ended June 30,
(dollars in thousands)	2019		% (1)	2018		% (1)	2019		% (1)	2018		% (1)
Revenue:
U.S. Health & Human Services	$	291,132		$	314,477		$	876,082		$	924,967
U.S. Federal Services	292,295			112,226			799,018			361,536
Outside the U.S.	147,283			171,152			456,749			547,287
Total	$	730,710		$	597,855		$	2,131,849		$	1,833,790
Gross profit:
U.S. Health & Human Services	$	86,664	29.8%	$	101,425	32.3%	$	260,955	29.8%	$	272,242	29.4%
U.S. Federal Services	66,803		22.9%	32,276		28.8%	175,484		22.0%	93,008		25.7%
Outside the U.S.	20,780		14.1%	20,983		12.3%	66,495		14.6%	90,197		16.5%
Total	$	174,247	23.8%	$	154,684	25.9%	$	502,934	23.6%	$	455,447	24.8%
Selling, general & administrative expense:
U.S. Health & Human Services	$	32,414	11.1%	$	34,382	10.9%	$	93,953	10.7%	$	105,803	11.4%
U.S. Federal Services	32,896		11.3%	17,399		15.5%	90,632		11.3%	51,587		14.3%
Outside the U.S.	15,791		10.7%	16,775		9.8%	52,591		11.5%	53,284		9.7%
Restructuring costs	—		NM	—		NM	—		NM	2,320		NM
Other	503		NM	1,032		NM	2,201		NM	1,032		NM
Total	$	81,604	11.2%	$	69,588	11.6%	$	239,377	11.2%	$	214,026	11.7%
Operating income:
U.S. Health & Human Services	$	54,250	18.6%	$	67,043	21.3%	$	167,002	19.1%	$	166,439	18.0%
U.S. Federal Services	33,907		11.6%	14,877		13.3%	84,852		10.6%	41,421		11.5%
Outside the U.S.	4,989		3.4%	4,208		2.5%	13,904		3.0%	36,913		6.7%
Amortization of intangible assets	(9,049)		NM	(2,525)		NM	(24,026)		NM	(7,846)		NM
Restructuring costs (2)	—		NM	—		NM	—		NM	(2,320)		NM


Other (3)	(503)		NM	(1,032)		NM	(2,201)		NM	(1,032)		NM
Total	$	83,594	11.4%	$	82,571	13.8%	$	239,531	11.2%	$	233,575	12.7%

(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 nine month periods ended June 30, 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" for more details.

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


	June 30, 2019		September 30, 2018
U.S. Health & Human Services	$	456,293	$	442,063
U.S. Federal Services	877,263		375,807
Outside the U.S.	212,959		184,872
Corporate	144,391		459,258
Total	$	1,690,906	$	1,462,000