MAXIMUS, INC.

For the period ended Dec 31, 2024. Filed Feb 6, 2025.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Dec 31, 2024 · Filed Feb 6, 2025

MMS$65.64+0.2%Stored close · as of Nov 9, 2026

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Contents

8. Fair Value Measurements

FAIR VALUE MEASUREMENTS

The following assets and liabilities are recorded at fair value on a recurring basis.

We hold mutual fund assets within a Rabbi Trust to cover liabilities in our deferred compensation plan. These assets have prices quoted within active markets and, accordingly, are classified as level 1 within the fair value hierarchy.

We have interest rate swap agreements serving to reduce our interest rate risk on our debt. These agreements can be valued using observable data and, accordingly, are classified as level 2 within the fair value hierarchy.

In connection with the businesses sold in Australia and Korea, we provided assurances of potential losses. This indemnified liability is recorded at fair value as of the disposal date, based on an assessment of probability-weighted outcomes. Accordingly, these inputs were not observable and were classified as level 3 within the fair value hierarchy. Changes in the fair value of the indemnification liability are recorded in the consolidated statement of operations.

The tables below present assets and liabilities measured and recorded at fair value in our consolidated balance sheets on a recurring basis and their corresponding level within the fair value hierarchy. No transfers between Level 1, Level 2, and Level 3 fair value measurements occurred for the three months ended December 31, 2024.

Table 8.1: Fair Value Measurements
	As of December 31, 2024
	Level 1	Level 2	Level 3	Balance
(in thousands)
Assets:
Deferred compensation assets - Rabbi Trust	$34,832	$—	$—	$34,832
Interest rate swaps - $450 million notional value	—	13,388	—	13,388
Total assets	$34,832	$13,388	$—	$48,220
Liabilities:
Interest rate swaps - $200 million notional value	$—	$880	$—	$880
Indemnification liability	—	—	9,710	9,710
Total liabilities	$—	$880	$9,710	$10,590

The fair values of receivables, prepaids, other assets, accounts payable, accrued costs, and other current liabilities approximate the carrying values as a result of the short-term nature of these instruments. The carrying value of our debt is consistent with the fair value as the stated interest rates in the agreements are consistent with the current market rates used in notes with similar terms in the markets (Level 2 inputs).

Accumulated Other Comprehensive Loss

All amounts recorded in accumulated other comprehensive loss are related to our foreign currency translations and interest rate swaps, net of tax. The following table shows changes in accumulated other comprehensive loss. Amounts reclassified from other comprehensive income were recorded within our selling, general and administrative expenses (for foreign currency translation adjustments) and within interest expense (for gains on derivatives).

Table 8.2: Details of Changes in Accumulated Other Comprehensive Loss by Category
	Foreign currency translation adjustment	Net unrealized gain on derivatives, net of tax	Total
(in thousands)
Balance as of September 30, 2024	$(39,225)	$6,765	$(32,460)
Other comprehensive income before reclassifications	(10,820)	4,912	(5,908)
Amounts reclassified from accumulated other comprehensive loss	21,272	(2,458)	18,814
Net current period other comprehensive losses	10,452	2,454	12,906
Balance as of December 31, 2024	$(28,773)	$9,219	$(19,554)

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