10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________

FORM 10-K

___________________

x	ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 28, 2012
OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from ____________ to _____________

Commission file number 1-7567

___________________

URS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	94-1381538
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
600 Montgomery Street, 26th Floor
San Francisco, California	94111-2728
(Address of principal executive offices)	(Zip Code)

(415) 774-2700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Name of each exchange on which registered:
Common Shares, par value $.01 per share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes x No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.  Yes o No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):  Large accelerated filer x Accelerated filer oNon-accelerated filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x

The aggregate market value of the common stock of the registrant held by non-affiliates on February 18, 2013 and June 29, 2012 (the last business day of the registrant’s most recently completed second fiscal quarter) was $3,142.4 million and $2,630.1 million, respectively, based upon the closing sales price of the registrant’s common stock on such dates as reported in the consolidated transaction reporting system.  On February 18, 2013 and June 29, 2012, there were 77,021,153 shares and 76,815,737 shares of the registrant’s common stock outstanding, respectively.

Documents Incorporated by Reference

Part III incorporates information by reference from the registrant’s definitive proxy statement for its 2013 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission.

URS CORPORATION AND SUBSIDIARIES

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “potential,” “intend,” “may,” “plan,” “predict,” “project,” “will,” and similar terms used in reference to our future revenues, services, project awards and business trends; future accounting, goodwill and actuarial estimates; future contract gains or losses; future backlog and book of business conversion and debookings; future account receivable and days sales outstanding; future completion of our Form S-4 exchange offer; future tax deductions and expenses; future stock-based compensation expenses; future dividends; future bonus, pension and post-retirement expenses; future compliance with regulations; future legal proceedings and accruals; future bonding and insurance coverage; future debt payments and capital expenditures; future changes in foreign currency; future effectiveness of our disclosure and internal controls over financial reporting and future economic and industry conditions.  We believe that our expectations are reasonable and are based on reasonable assumptions, however, we caution against relying on any of our forward-looking statements as such forward-looking statements by their nature involve risks and uncertainties.  A variety of factors, including but not limited to the following, could cause our business and financial results, as well as the timing of events, to differ materially from those expressed or implied in our forward-looking statements:  declines in the economy or client spending; federal sequestration; changes in our book of business; our compliance with government regulations; integration of acquisitions; employee, agent or partner misconduct; our ability to procure government contracts; liabilities for pending and future litigation; environmental liabilities; changes in oil, natural gas and other commodity prices; availability of bonding and insurance; our reliance on government appropriations; unilateral termination provisions in government contracts; impairment of our goodwill; our ability to make accurate estimates and assumptions; our accounting policies; workforce utilization; our and our partners’ ability to bid on, win, perform and renew contracts and projects; our dependence on partners, subcontractors and suppliers; customer payment defaults; our ability to recover on claims; impact of target and fixed-priced contracts on earnings; the inherent dangers at our project sites; the impact of changes in laws and regulations; nuclear indemnifications and insurance; misstatements in expert reports; a decline in defense spending; industry competition; our ability to attract and retain key individuals; retirement plan obligations; our leveraged position and the ability to service our debt; restrictive covenants in finance arrangements; risks associated with international operations; business activities in high security risk countries; information technology risks; natural and man-made disaster risks; our relationships with labor unions; our ability to protect our intellectual property rights; anti-takeover risks and other factors discussed more fully in Management’s Discussion and Analysis of Financial Condition and Results of Operationsbeginning on page 42, Risk Factors beginning on page 20, as well as in other reports subsequently filed from time to time with the United States Securities and Exchange Commission.  We assume no obligation to revise or update any forward-looking statements.

PART I
Item 1.	Business	3
Item 1A.	Risk Factors	20
Item 1B.	Unresolved Staff Comments	37
Item 2.	Properties	37
Item 3.	Legal Proceedings	37
Item 4.	Mine Safety Disclosure	37
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	38
Item 6.	Selected Financial Data	40
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	89

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Item 8.	Consolidated Financial Statements and Supplementary Data	90
	Consolidated Balance Sheets
	December 28, 2012 and December 30, 2011	92
	Consolidated Statements of Operations
	Years ended December 28, 2012, December 30, 2011, and December 31, 2010	93
	Consolidated Statements of Comprehensive Income
	Years ended December 28, 2012, December 30, 2011, and December 31, 2010	94
	Consolidated Statements of Changes in Stockholders’ Equity
	Years ended December 28, 2012, December 30, 2011, and December 31, 2010	95
	Consolidated Statements of Cash Flows
	Years ended December 28, 2012, December 30, 2011, and December 31, 2010	98
	Notes to Consolidated Financial Statements	100
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosures	162
Item 9A.	Controls and Procedures	162
Item 9B.	Other Information	163
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	164
Item 11.	Executive Compensation	164
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	164
Item 13.	Certain Relationships and Related Transactions, and Director Independence	164
Item 14.	Principal Accountant Fees and Services	164
PART IV
Item 15.	Exhibits and Financial Statement Schedules	165

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ITEM 1.  BUSINESS

Summary

We are a leading international provider of engineering, construction and technical services.  We offer a broad range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients around the world.  We also are a United States (“U.S.”) federal government contractor in the areas of systems engineering and technical assistance, operations and maintenance, and information technology (“IT”) services.  As of January 25, 2013, we had more than 54,000 employees in a global network of offices and contract-specific job sites in more than 50 countries.

We provide our services through four reporting segments, which we refer to as our Infrastructure & Environment, Federal Services, Energy & Construction, and Oil & Gas Divisions.  Our Infrastructure & Environment Division provides a wide range of program management, planning, design, engineering, construction and construction management, and operations and maintenance services to a variety of U.S. and international government agencies and departments, as well as to private sector clients.  Our Federal Services Division provides program management, planning, systems engineering and technical assistance, construction and construction management, operations and maintenance, and decommissioning and closure services to U.S. federal government agencies, primarily the Department of Defense (“DOD”), the National Aeronautics and Space Administration (“NASA”), and the Department of Homeland Security (“DHS”).  Our Energy & Construction Division provides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to U.S. and international government agencies and departments, as well as to private sector clients.  Our Oil & Gas Division provides construction and construction management, and operations and maintenance services for oil and gas clients in North America across the upstream and midstream supply chain.

On May 14, 2012, we acquired the outstanding common shares of Flint Energy Services Ltd. (“Flint”) for C$25.00 per share in cash, or C$1.24 billion (US$1.24 billion based on the exchange rate on the date of acquisition) and paid $110.3 million of Flint’s debt prior to the closing of the transaction in exchange for a promissory note from Flint.  At the close of the transaction, Flint’s operations became the Oil & Gas Division.

For information on our business by segment and geographic region, please refer to Note 16, “Segment and Related Information,” to our “Consolidated Financial Statements and Supplementary Data,” which is included under Item 8 of this report and incorporated into this Item by reference.  For information on risks related to our business, segments and geographic regions, including risks related to foreign operations, please refer to Item 1A, “Risk Factors” of this report.

Clients, Market Sectors and Services

We serve public agencies and private sector companies worldwide through our global network of offices including locations in the Americas, the United Kingdom (“U.K.”), continental Europe, the Middle East, India, China, Australia and New Zealand.  Our clients include U.S. federal government agencies, national governments of other countries, state and local government agencies both in the U.S. and in other countries, and private sector clients representing a broad range of industries.  See Note 16, “Segment and Related Information,” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report for financial information regarding geographic areas.

Our expertise is focused in five market sectors:  federal, infrastructure, oil & gas, power,and industrial.  Within these markets, we offer a broad range of services, including program management; planning, design and engineering; systems engineering and technical assistance; IT services; construction and construction management; operations and maintenance; and decommissioning and closure.

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The following chart and table illustrate the percentage of our revenues by market sector for the year ended December 28, 2012, and representative services we provide in each of these markets.

2012 Revenues by Market Sector

Representative Services	Market Sector
	Federal	Infrastructure	Oil & Gas	Power	Industrial
Program Management	ü	ü	ü	ü	ü
Planning, Design and Engineering	ü	ü	ü	ü	ü
Systems Engineering and Technical Assistance	ü	—	—	—	—
Information Technology Services	ü	—	—	—	—
Construction and Construction Management	ü	ü	ü	ü	ü
Operations and Maintenance	ü	ü	ü	ü	ü
Decommissioning and Closure	ü	—	ü	ü	ü

ü   the service is provided in the market sector.

— the service is not provided in the market sector.

Market Sectors

The following table summarizes the primary market sectors served by our four divisions for the year ended December 28, 2012.

Market Sectors	Divisions
	Infrastructure & Environment	Federal Services	Energy & Construction	Oil & Gas
Federal	ü	ü	ü	—
Infrastructure	ü	—	ü	—
Oil & Gas	ü	—	ü	ü
Power	ü	—	ü	—
Industrial	ü	—	ü	—

ü   a primary market sector for the division.

— not a primary market sector for the division.

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Federal

As a major contractor to the U.S. federal government and national governments of other countries, we serve a wide variety of government departments and agencies, including the DOD, DHS, Department of Energy (“DOE”), as well as the General Services Administration, the Environmental Protection Agency (“EPA”), NASA and other federal agencies.  We also serve departments and agencies of other national governments, such as the U.K. Nuclear Decommissioning Authority (“NDA”).  Our services range from program management; planning, design and engineering; systems engineering and technical assistance; and IT services to construction and construction management; operations and maintenance; and decommissioning and closure.

We modernize weapons systems, refurbish military vehicles and aircraft, train pilots and manage military and other government installations.  We provide logistics support for military operations and help decommission former military bases for redevelopment.  In the area of global threat reduction, we support programs to eliminate nuclear, chemical and biological weapons, and we assist the DOE and other nuclear regulatory agencies outside the U.S. in the management of complex programs and facilities.  We also provide a wide range of IT services to both defense and civilian agencies to improve the efficiency and productivity of their IT networks and systems, and to combat cyber security threats.

Our project expertise in our federal market sector encompasses the following:

·   Operation and maintenance of complex government installations, including military bases and test ranges;

·   Logistics support for government supply and distribution networks, including warehousing, packaging, delivery and traffic management;

·   Weapons system design, maintenance and modernization, including acquisition support for new defense systems, and engineering and technical assistance for the modernization of existing systems;

·   Maintenance planning to extend the service life of weapons systems and other military equipment;

·   Maintenance, modification and overhaul of military aircraft and ground vehicles;

·   Training military pilots;

·   Management and operations and maintenance services for complex DOE and NDA programs and facilities;

·   Deactivation, decommissioning and disposal of nuclear weapons stockpiles and other nuclear waste;

·   Safety analyses for high-hazard facilities and licensing for DOE sites;

·   Threat assessments of public facilities and the development of force protection and security systems;

·   Planning and conducting emergency preparedness exercises;

·   First responder training for the military and other government agencies;

·   Management and operations and maintenance of chemical agent and chemical weapon disposal facilities;

·   Installation of monitoring technology to detect the movement of nuclear and radiological materials across national borders;

·   Planning, design and construction of aircraft hangars, barracks, military hospitals and other government buildings;

·   Environmental remediation and restoration for the redevelopment of military bases and other government installations; and

·   Network and communications engineering, software engineering, IT infrastructure design and implementation, cyber defense and cloud computing technologies.

5

Infrastructure

We provide a broad range of the services required to build, expand and modernize infrastructure, including surface, air and rail transportation networks; ports and harbors; water supply, treatment and conveyance systems; and many types of facilities.  We serve as the program manager, planner, architect, engineer, general contractor, constructor and/or construction manager for a wide variety of infrastructure projects, and we also provide operations and maintenance services when a project has been completed.

Our clients in our infrastructure market sector include local municipalities, community planning boards, state and municipal departments of transportation and public works, transit authorities, water and wastewater authorities, environmental protection agencies, school boards and authorities, colleges and universities, judiciary agencies, hospitals, ports and harbors authorities and owners, airport authorities and owners, and airline carriers.

Our project expertise in our infrastructure market sector encompasses services related to the following:

·   Highways, interchanges, bridges, tunnels and toll road facilities;

·   Intelligent transportation systems, such as traffic management centers;

·   Airport terminals, hangars, cargo facilities and people movers;

·   Air traffic control towers, runways, taxiways and aircraft fueling systems;

·   Baggage handling, baggage screening and other airport security systems;

·   Light rail, subways, bus rapid transit systems, commuter/intercity railroads, heavy rail and high-speed rail systems;

·   Rail transportation structures, including terminals, stations, multimodal facilities, parking facilities, bridges and tunnels;

·   Piers, wharves, seawalls, recreational marinas and small craft harbors;

·   Container terminals, liquid and dry bulk terminals and storage facilities;

·   Water supply, storage, distribution and treatment systems;

·   Municipal wastewater treatment and sewer systems;

·   Dams, levees, watershed and stormwater management, flood control systems and coastal restoration;

·   Education, judicial, correctional, healthcare, retail, sports and recreational facilities; and

·   Industrial, manufacturing, research and office facilities.

6

Oil & Gas

In the oil & gas market sector, we provide a wide range of design, construction, production, and operations and maintenance services across the upstream, midstream and downstream supply chain.  Our expertise supports the development of both conventional and unconventional oil and gas resources.  While our work in this sector is focused primarily in the North American oil and gas market, we also support the worldwide operations of global oil and gas clients.

For oil and gas exploration and production, we provide transportation, engineering, construction, fabrication and installation, commissioning and maintenance services for drilling and well site facilities, equipment and process modules, site infrastructure and off-site support facilities.  We also perform environmental and technology assessments for exploration and production projects to optimize recovery and minimize environmental impacts.  For downstream refining and processing operations, we design and construct gas treatment and processing, refining and petrochemical facilities, and provide maintenance services.  Our capabilities also include due diligence, permitting, compliance, environmental management, pollution control, health and safety, waste management and hazardous waste remediation.

Our project expertise in our oil & gas market sector encompasses services related to the following:

·   Environmental assessments, permitting, compliance, air quality services, waste management and hazardous waste remediation;

·   Planning, design, construction and construction management for gas treatment and processing, refining and petrochemical facilities;

·   Construction of access roads and well pads, and field production facilities such as wellhead gas processing equipment, gas compression stations, and oil storage tanks and related facilities;

·   Pipeline planning, design, construction, installation, maintenance and repair;

·   Energy-related transportation, including rig moving and oilfield equipment hauling services, mobile pressure and vacuum services, and fluid hauling;

·   Electrical, mechanical and instrumentation services;

·   Equipment and process module fabrication, installation and maintenance;

·   Asset management and maintenance services, including routine plant maintenance, coordination of third-party services, sustaining capital projects, and shutdown turnaround services for oil sands production facilities, oil refineries and related chemical, energy, power and processing plants; and

·   Demolition, asset recovery and property redevelopment and reuse of former oilfield sites, refiners and other oil and gas facilities.

7

Power

We plan, design, engineer, construct, retrofit and maintain a wide range of power-generating facilities, as well as the systems that transmit and distribute electricity.  Our services include planning, siting and licensing, permitting, engineering, procurement, construction and construction management, facility start-up, operations and maintenance, upgrades and modifications, and decommissioning and closure.  We provide these services to utilities, industrial co-generators, independent power producers, original equipment manufacturers and government utilities.  We also specialize in the development and installation of clean air technologies that reduce emissions at both new and existing fossil fuel power plants.  These technologies help power-generating facilities comply with air quality regulations.

Our project expertise in our power market sector encompasses services related to the following:

·   Fossil fuel power generating facilities;

·   Nuclear power generating facilities;

·   Hydroelectric power generating facilities;

·   Alternative and renewable energy sources, including biomass, geothermal, solar energy and wind systems;

·   Transmission and distribution systems; and

·   Emissions control systems.

Industrial

We provide a wide range of engineering, procurement and construction services for new industrial and process facilities and the expansion, modification and upgrade of existing facilities.  These services include front-end studies, engineering and process design, procurement, construction and construction management, facility management, and operations and maintenance.  Our expertise also includes due diligence, permitting, compliance, environmental management, pollution control, health and safety, waste management and hazardous waste remediation.  For facilities that are no longer in use, we provide site decommissioning and closure services.

Our industrial clients represent a broad range of industries, including automotive, chemical, consumer products, pharmaceutical, manufacturing, and mining.  Over the past several years, many of these companies have reduced the number of service providers they use, selecting larger, global multi-service contractors, like URS, in order to control overhead costs.

Our project expertise in our industrial and commercial market sector encompasses services related to the following:

·   Biotechnology and pharmaceutical research laboratories, pilot plants and production facilities;

·   Petrochemical, specialty chemical and polymer facilities;

·   Consumer products and food and beverage production facilities;

·   Automotive and other manufacturing facilities;

·   Pulp and paper production facilities; and

·   Mines and mining facilities for base and precious metals, industrial minerals and energy fuels.

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Representative Services

We provide program management; planning, design and engineering; systems engineering and technical assistance; information technology services; construction and construction management; operations and maintenance; and decommissioning and closure services to U.S. federal government agencies, national governments of other countries, state and local government agencies both in the U.S. and overseas, and private sector clients representing a broad range of industries.  Although we are typically the prime contractor, in some cases, we provide services as a subcontractor or through joint ventures or partnership agreements with other service providers.

The following table summarizes the services provided by our divisions for the year ended December 28, 2012.

Services	Divisions
	Infrastructure & Environment	Federal Services	Energy & Construction	Oil & Gas
Program Management	ü	ü	ü	—
Planning, Design and Engineering	ü	ü	ü	—
Systems Engineering and Technical Assistance	—	ü	—	—
Information Technology Services	ü	ü	—	—
Construction and Construction Management	ü	ü	ü	ü
Operations and Maintenance	ü	ü	ü	ü
Decommissioning and Closure	ü	ü	ü	—

ü   the division provides the listed service.

—   the division does not provide the listed service.

Program Management.  We provide the technical and administrative services required to manage, coordinate and integrate the multiple and concurrent assignments that comprise a large program – from conception through completion.  For large military programs, which typically involve naval, ground, vessel and airborne platforms, our program management services include logistics planning, acquisition management, risk management of weapons systems, safety management and subcontractor management.  We also provide program management services for large capital improvement programs, which typically involve the oversight of a wide variety of activities ranging from planning, coordination, scheduling and cost control to design, construction and commissioning.

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Planning, Design and Engineering.  The planning process is typically used to develop a blueprint or overall scheme for a project.  Based on the project requirements identified during the planning process, detailed engineering drawings and calculations are developed, which may include material specifications, construction cost estimates and schedules.  Our planning, design and engineering services include the following:

·   Master planning;

·   Land-use planning;

·   Transportation planning;

·   Technical and economic feasibility studies;

·   Environmental impact assessments;

·   Project development/design;

·   Permitting;

·   Quality assurance and validation;

·   Integrated safety management and analysis;

·   Alternative design analysis;

·   Conceptual and final design documents;

·   Technical specifications; and

·   Process engineering and design.

We provide planning, design and engineering services for the construction of new transportation projects and for the renovation and expansion of existing transportation infrastructure, including bridges, highways, roads, airports, mass transit systems and railroads, and ports and harbors.  We also plan and design many types of facilities, such as schools, courthouses and hospitals; power generation, industrial and commercial facilities; waste treatment and disposal facilities; water supply and conveyance systems and wastewater treatment plants; and corporate offices and retail outlets.  Our planning, design and engineering capabilities also support homeland security and global threat reduction programs; hazardous and radioactive waste clean-up activities at government sites and facilities; and environmental assessment, due diligence and permitting at government, commercial and industrial facilities.  We also provide planning, design and engineering support to U.S. federal government clients for major research and development projects, as well as for technology development and deployment.

Systems Engineering and Technical Assistance.  We provide a broad range of systems engineering and technical assistance to all branches of the U.S. military for the design and development of new weapons systems and the modernization of aging weapons systems.  We have the expertise to support a wide range of platforms including aircraft and helicopters, tracked and wheeled vehicles, ships and submarines, shelters and ground support equipment.  Representative systems engineering and technical assistance services include the following:

·   Defining operational requirements and developing specifications for new weapons systems;

·   Reviewing hardware and software design data; and

·   Developing engineering documentation for these systems.

We support a number of activities including technology insertion, system modification, installation of new systems/equipment, design of critical data packages, and configuration management.

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Information Technology Services.  We provide a broad range of IT services to U.S. federal government clients, including both civilian and defense agencies.  Our expertise covers network and communications engineering, software engineering, IT infrastructure design and implementation, cyber defense and cloud computing technologies.  Our services typically include:

·   Assisting government agencies in developing, implementing and managing secure, federally compliant cloud computing technologies;

·   Cyber defense services, including vulnerability assessments, policy development and management, compliance, incident response, disaster recovery and continuity of operations;

·   Engineering, procuring, installing, certifying and operating IT networks; and

·   Developing software applications for complex, multi-user, multi-platform systems.

Construction and Construction Management Services.  We provide construction contracting and construction management services for projects involving transportation infrastructure, environmental and waste management, power generation and transmission, oil and gas, industrial and manufacturing facilities, water resources and wastewater treatment; government buildings and other facilities; and mining projects.  As a contractor, we are responsible for the construction and completion of a project in accordance with its specifications and contracting terms.  In this capacity, we often manage the procurement and/or fabrication of materials, equipment and supplies; directly supervise craft labor; and manage and coordinate subcontractors.  Our services typically include the following:

·   Procuring specified materials and equipment;

·   Work force planning and mobilization;

·   Supervising and completing physical construction;

·   Facility commissioning;

·   Managing project milestone and completion schedules;

·   Managing project cost controls and accounting;

·   Negotiating and expediting change orders;

·   Administering job site safety, security and quality control programs; and

·   Preparing and delivering construction documentation, including as-built drawings.

As a construction manager, we serve as the client’s representative to ensure compliance with design specifications and contract terms.  In performing these services, we may purchase equipment and materials on behalf of the client; monitor the progress, cost and quality of construction projects in process and oversee and coordinate the activities of construction contractors.  Our services typically include the following: 

·   Contract administration;

·   Change order management;

·   Cost and schedule management;

·   Safety program and performance monitoring;

·   Inspection;

·   Quality control and quality assurance;

·   Document control; and

·   Claims and dispute resolution. 

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Operations and Maintenance.  We provide operations and maintenance services in support of large military installations and operations, and hazardous facilities, as well as for transportation systems, oil and gas, industrial and manufacturing facilities, and mining operations.  Our services include the following:

·   Management of military base logistics, including overseeing the operation of government warehousing and distribution centers, as well as government property and asset management;

·   Maintenance, modification, overhaul and life service extension services for military vehicles, vessels and aircraft;

·   Management, maintenance and operation of chemical agent and chemical weapons disposal systems;

·   Comprehensive military flight training services;

·   Development and maintenance of high-security systems;

·   Management of high-risk, technically complex chemical and nuclear processing facilities;

·   Integrated facilities and logistics management for industrial and manufacturing facilities;

·   Toll road, light rail and airport operations;

·   Operating mine and metal and mineral processing facilities;

·   Other miscellaneous services such as staffing, repair, renovation, predictive and preventive maintenance, and health and safety services;

·   Oil rig moving, setup, and removal services;

·   Pressure and vacuum services, and fluid hauling; and

·   Asset management and maintenance services for oil sands production facilities, refineries and related chemical, energy, power and processing plants.

Decommissioning and Closure.  We provide decommissioning and closure services for nuclear power plants, nuclear research and test facilities, production sites and laboratories.  Many of these facilities have been highly contaminated and contain significant inventories of chemical and nuclear materials.  We also provide decommissioning and closure services for the DOD at chemical weapons depots and for military installations under the DOD’s Base Realignment and Closure program, as well as for industrial facilities and mining operations.  Our services include the following:

·   Planning, scoping surveys and cost estimating;

·   Due diligence and permitting;

·   Environmental remediation;

·   Hazardous chemical and nuclear waste stabilization treatment and disposition;

·   Construction/demolition management; and

·   Redevelopment and reuse.

Major Customers

Our largest clients are from our federal market sector.  Within this sector, we have multiple contracts with our two major customers:  the U.S. Army and DOE.  For the purpose of analyzing revenues from major customers, we do not consider the combination of all federal departments and agencies as one customer because the different federal agencies we serve manage separate budgets.  As such, reductions in spending by one federal agency do not affect the revenues we could earn from another federal agency.  In addition, the procurement processes for federal agencies are not centralized, and procurement decisions are made separately by each agency.  The loss of the federal government, the U.S. Army, or the DOE as clients would have a material adverse effect on our business; however, we are not dependent on any single contract on an ongoing basis.  We believe that the loss of any single contract would not have a material adverse effect on our business.

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Our revenues from the U.S. Army and DOE by division for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 are presented below:

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
The U.S. Army (1)
Infrastructure & Environment	$	128.4		$	141.7		$	167.0
Federal Services		1,495.8			1,351.1			1,408.7
Energy & Construction		130.8			199.5			346.6
Total U.S. Army	$	1,755.0		$	1,692.3		$	1,922.3
Revenues from the U.S. Army as a percentage of our consolidated revenues		16	%		18	%		21	%
DOE
Infrastructure & Environment	$	5.6		$	5.9		$	7.2
Federal Services		27.7			26.8			13.7
Energy & Construction		956.4			1,236.3			1,182.6
Total DOE	$	989.7		$	1,269.0		$	1,203.5
Revenues from DOE as a percentage of our consolidated revenues		9	%		13	%		13	%
Revenues from the federal market sector as a percentage of our consolidated revenues		40	%		49	%		49	%

(1)   The U.S. Army includes U.S. Army Corps of Engineers.

Competition

Our industry is highly fragmented and intensely competitive.  We have numerous competitors, ranging from small private firms to multi-billion dollar companies.  The technical and professional aspects of our services generally do not require large upfront capital expenditures and, therefore, provide limited barriers against new competitors.  Some of our competitors have achieved greater market penetration in some of the markets in which we compete and have substantially more financial resources and/or financial flexibility than we do.  To our knowledge, no individual company currently dominates any significant portion of our markets.

We believe that we are well positioned to compete in our markets because of our reputation, our cost effectiveness, our long-term client relationships, our extensive network of offices, our employee expertise, and our broad range of services.  In addition, as a result of our national and international network of offices and contract-specific job sites in more than 50 countries, we are able to offer our clients localized knowledge and expertise, as well as the support of our worldwide professional staff.

Our Infrastructure & Environment, Federal Services, Energy & Construction, and Oil & Gas Divisions operate in similar competitive environments.  The divisions compete based on performance, reputation, expertise, price, technology, customer relationships and a range of service offerings.  The following is a list of primary competitors for each of our divisions:

·   The primary competitors of our Infrastructure & Environment Division include AECOM Technology Corporation, CH2M Hill Companies, Ltd., Chicago Bridge & Iron Company NV, Fluor Corporation, Jacobs Engineering Group Inc., and Tetra Tech, Inc.

·   The primary competitors of our Federal Services Division include AECOM Technology Corporation, BAE Systems, Booz Allen Hamilton, CACI International Inc., CH2M Hill Companies, Computer Sciences Corporation, Jacobs Engineering Group Inc., L-3 Communications Holdings Inc., ManTech International Corporation, Raytheon Company, and SAIC, Inc.

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·   The primary competitors of our Energy & Construction Division include AMEC, Bechtel Corporation, Black & Veatch Corporation, CH2M Hill Companies, Ltd., Chicago Bridge & Iron Company NV, Fluor Corporation, Granite Construction Company, Jacobs Engineering Group Inc., KBR, Inc., Kiewit Corporation, Quanta Services, Inc., Skanska Group, The Babcock & Wilcox Company, and WorleyParsons, Ltd.

·   The primary competitors of our Oil & Gas Division include Aecon Group Inc., Big Country Energy Services LP, EnerMAX Services, J.V. Driver, Jacobs Engineering Group Inc., Ledcor Construction, Matrix Services, Mullen Group Ltd., Kiewit Corporation, TransForce Inc., and Willbros Group, Inc.

Book of Business

For the purpose of calculating our book of business, we determine the amounts of all contract awards that may potentially be recognized as revenues.  We also include an estimate of the equity in income of unconsolidated joint ventures over the life of the contracts in our book of business.  We categorize the amount of our book of business into backlog, option years and indefinite delivery contracts (“IDCs”), based on the nature of the award and its current status.

Backlog.  Our contract backlog represents the monetary value of signed contracts, including task orders that have been issued and funded under IDCs and, where applicable, a notice to proceed has been received from the client that is expected to be recognized as revenues or equity in income of unconsolidated joint ventures as services are performed.

The performance periods of our contracts vary widely from a few months to many years.  In addition, contract durations often differ significantly among our divisions.  As a result, the amount of revenues that will be realized beyond one year also varies from segment to segment.  As of December 28, 2012, we estimated that approximately 55% of our total backlog would not be realized within one year, based upon the timing of awards and the long-term nature of many of our contracts; however, no assurance can be given that backlog will be realized at this rate.

Option Years.  Our option years represent the monetary value of option periods under existing contracts in backlog, which are exercisable at the option of our clients without requiring us to go through an additional competitive bidding process and would be canceled only if a client decided to end the project (a termination for convenience) or through a termination for default.  Option years are in addition to the “base periods” of these contracts.  Base periods for these contracts can vary from one to five years.

Indefinite Delivery Contracts.  IDCs represent the expected monetary value to us of signed contracts under which we perform work only when the client awards specific task orders or projects to us.  When agreements for such task orders or projects are signed and funded, we transfer their value into backlog.  Generally, the terms of these contracts exceed one year and often include a maximum term and potential value.  IDCs generally range from one to twenty years in length.

While the value of our book of business is a predictor of future revenues and equity in income of unconsolidated joint ventures, we have no assurance, nor can we provide assurance, that we will ultimately realize the maximum potential values for backlog, option years or IDCs.  Based on our historical experience, our backlog has the highest likelihood of converting into revenues or equity in income of unconsolidated joint ventures because it is based upon signed and executable contracts with our clients.  Option years are not as certain as backlog because our clients may decide not to exercise one or more option years.  Because we do not perform work under IDCs until specific task orders are issued by our clients, the value of our IDCs is not as likely to convert into revenues or equity in income of unconsolidated joint ventures as other categories of our book of business.

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As of December 28, 2012 and December 30, 2011, our total book of business was $24.9 billion and $27.0 billion, respectively.  Our backlog decreased primarily due to reductions resulting from the recognition of revenues and equity in earnings of unconsolidated joint ventures, and from the removal of $560 million from federal backlog resulting from a decision by the DOE to remove funding of pension obligations from the scope of one of our contracts, which otherwise would have resulted in recognition of revenues as reimbursement for offsetting pension expenses on that contract.  Additional decreases in backlog and IDCs were caused primarily by lower than expected activity on an IDC contract with the DOD, and reductions in project scope and project cancellations by a power client.

These decreases were partially offset by additions of $1.4 billion to our book of business resulting from our acquisition of Flint.  The following tables summarize our book of business:

	Infrastructure				Energy
	&		Federal		&
(In millions)	Environment		Services		Construction		Oil & Gas		Total
As of December 28, 2012
Backlog	$	3,028.4	$	3,476.9	$	5,947.1	$	823.8	$	13,276.2
Option years		197.3		2,728.1		2,056.8		—		4,982.2
Indefinite delivery contracts		2,572.4		3,238.7		236.0		611.7		6,658.8
Total book of business	$	5,798.1	$	9,443.7	$	8,239.9	$	1,435.5	$	24,917.2
As of December 30, 2011
Backlog	$	2,993.1	$	4,141.8	$	7,124.7	$	—	$	14,259.6
Option years		316.6		2,370.1		2,026.2		—		4,712.9
Indefinite delivery contracts		2,806.5		3,304.0		1,948.0		—		8,058.5
Total book of business	$	6,116.2	$	9,815.9	$	11,098.9	$	—	$	27,031.0

	December 28,		December 30,
(In millions)	2012		2011
Backlog by market sector:
Federal	$	6,546.5	$	8,542.4
Infrastructure		2,957.6		3,011.0
Oil & Gas		1,461.3		383.4
Power		1,416.1		1,623.8
Industrial		894.7		699.0
Total backlog	$	13,276.2	$	14,259.6

History

We were originally incorporated in California on May 1, 1957, under the former name of Broadview Research Corporation.  On May 18, 1976, we re-incorporated in Delaware under the name URS Corporation.  After several additional name changes, we re-adopted the name “URS Corporation” on February 21, 1990.

Regulations

Our business is impacted by environmental, health and safety, government procurement, transportation, employment, anti-bribery and many other government regulations and requirements.  Below is a summary of some of the regulations that impact our business.  For more information on risks associated with our government regulations, please refer to Item 1A, “Risk Factors,” of this report.

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Environmental, Health and Safety.  Our business involves the planning, design, program management, construction and construction management, and operations and maintenance at various sites, including but not limited to pollution control systems, nuclear facilities, hazardous waste and Superfund sites, contract mining sites, hydrocarbon production, distribution and transport sites, military bases and other infrastructure-related facilities.  We also regularly perform work, including oil field and pipeline construction services in and around sensitive environmental areas, such as rivers, lakes and wetlands.  In addition, we have contracts with U.S. federal government entities to destroy hazardous materials, including chemical agents and weapons stockpiles, as well as to decontaminate and decommission nuclear facilities.  These activities may require us to manage, handle, remove, treat, transport and dispose of toxic or hazardous substances.  We also own several properties in the U.S. and Canada that have been used for the storage and maintenance of equipment and upon which hydrocarbons or other wastes may have been disposed or released.

Significant fines, penalties and other sanctions may be imposed for non-compliance with environmental and health and safety laws and regulations, and some laws provide for joint and several strict liabilities for remediation of releases of hazardous substances, rendering a person liable for environmental damage, without regard to negligence or fault on the part of such person.  These laws and regulations may expose us to liability arising out of the conduct of operations or conditions caused by others, or for our acts that were in compliance with all applicable laws at the time these acts were performed.  For example, there are a number of governmental laws that strictly regulate the handling, removal, treatment, transportation and disposal of toxic and hazardous substances, such as the Comprehensive Environmental Response Compensation and Liability Act of 1980, and comparable national and state laws, that impose strict, joint and several liabilities for the entire cost of cleanup, without regard to whether a company knew of or caused the release of hazardous substances.  In addition, some environmental regulations can impose liability for the entire clean-up upon owners, operators, generators, transporters and other persons arranging for the treatment or disposal of such hazardous substances costs related to contaminated facilities or project sites.  Other federal environmental, health and safety laws affecting us include, but are not limited to, the Resource Conservation and Recovery Act, the National Environmental Policy Act, the Clean Air Act, the Clean Air Mercury Rule, the Occupational Safety and Health Act, the Toxic Substances Control Act and the Superfund Amendments and Reauthorization Act, as well as other comparable national and state laws.  Liabilities related to environmental contamination or human exposure to hazardous substances, comparable national and state laws or a failure to comply with applicable regulations could result in substantial costs to us, including cleanup costs, fines and civil or criminal sanctions, third-party claims for property damage or personal injury or cessation of remediation activities.

Some of our business operations are covered by Public Law 85-804, which provides for indemnification by the U.S federal government against claims and damages arising out of unusually hazardous or nuclear activities performed at the request of the U.S. federal government.  Should public policies and laws be changed, however, U.S. federal government indemnification may not be available in the case of any future claims or liabilities relating to hazardous activities that we undertake to perform.

Government Procurement.  The services we provide to the U.S. federal government are subject to Federal Acquisition Regulation (“FAR”), the Truth in Negotiations Act, Cost Accounting Standards (“CAS”), the Services Contract Act, export controls rules and DOD security regulations, as well as many other laws and regulations.  These laws and regulations affect how we transact business with our clients and in some instances, impose additional costs on our business operations.  A violation of specific laws and regulations could lead to fines, contract termination or suspension of future contracts.  Our government clients can also terminate, renegotiate, or modify any of their contracts with us at their convenience, and many of our government contracts are subject to renewal or extension annually.

Transportation.  We own a large fleet of trucks and other heavy vehicles to transport drilling rigs and provide fluid hauling and other oil and gas services in North America.  We are subject to national, state and Canadian provincial regulations including the permit requirements of highway and safety authorities.  These regulatory authorities exercise broad powers over our transport operations, generally governing such matters as the authorization to engage in transportation operations, safety, equipment testing and specifications and insurance requirements.  The transportation industry is also subject to regulatory and legislative changes that may impact our operations, such as by requiring changes in fuel emissions limits, vehicle air emissions, the hours of service regulations that govern the amount of time a driver may drive or work in any specific period, limits on vehicle weight and size and other matters.

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Other regulations and requirements.  We provide services to the DOD and other defense-related entities that often require specialized professional qualifications and security clearances.  We are also subject to the U.S. Foreign Corrupt Practices Act and similar anti-bribery laws, which generally prohibit companies and their intermediaries from making improper payments to foreign government officials for the purpose of obtaining or retaining business.  The U.K. Bribery Act of 2010 prohibits both domestic and international bribery, as well as bribery across both private and public sectors.  In addition, an organization that “fails to prevent bribery” committed by anyone associated with the organization can be charged under the U.K. Bribery Act unless the organization can establish the defense of having implemented “adequate procedures” to prevent bribery.  To the extent we export technical services, data and products outside of the U.S., we are subject to U.S. and international laws and regulations governing international trade and exports, including but not limited to the International Traffic in Arms Regulations, the Export Administration Regulations and trade sanctions against embargoed countries.In addition, as engineering design services professionals, we are subject to a variety of local, state, federal and foreign licensing and permit requirements and ethics rules.

Sales and Marketing

Our Infrastructure & Environment Division performs business development, sales and marketing activities primarily through our network of local offices around the world.  For large, market-specific projects requiring diverse technical capabilities, we utilize the company-wide resources of specific disciplines.  This often involves coordinating marketing efforts on a regional, national or global level.  Our Federal Services Division performs business development, sales and marketing activities primarily through its management groups, which address specific markets, such as homeland security and defense systems.  In addition, our Federal Services Division coordinates national marketing efforts on large projects, which often involve a multi-segment or multi-market scope.  Our Energy & Construction Division conducts business development, sales and marketing activities at a market sector level.  Our Oil & Gas Division operates in regional markets across Canada and the U.S. to help stimulate and focus on increased sales opportunities for multiple service lines.  Personnel from these regions work collaboratively with the Oil & Gas Division’s business development group and service line specialists.  For large complex projects, markets or clients that require broad-based capabilities, business development efforts are coordinated across our divisions.  Over the past year, our divisions, including the Oil & Gas Division, have been successful in marketing their combined capabilities to win new work with clients in the various markets we serve.

Seasonality

We experience seasonal trends in our business in connection with federal holidays, such as Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas and New Year’s Day.  Our revenues typically are lower during these times of the year because many of our clients’ employees, as well as our own employees, do not work during these holidays, resulting in fewer billable hours charged to projects and thus, lower revenues recognized.  In addition to holidays, our business also is affected by seasonal bad weather conditions, such as hurricanes, floods, snowstorms or other inclement weather, which may cause some of our offices and projects to close or reduce activities temporarily.  For example, in the first quarter of the year, winter weather sometimes results in intermittent office closures and work interruptions.  In our Oil & Gas Division, winter weather enables increased access to remote work areas in Northern Canada, while spring road bans limit access to work areas in Canada and the Northern U.S.

Raw Materials

We purchase most of the raw materials and components necessary to operate our business from numerous sources.  However, the price and availability of raw materials and components may vary from year to year due to customer demand, production capacity, market conditions and material shortages.  While we do not currently foresee the lack of availability of any particular raw materials in the near term, prolonged unavailability of raw materials necessary to our projects and services or significant price increases for those raw materials could have a material adverse effect on our business in the near term.

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Government Contracts

Generally, our government contracts are subject to renegotiation or termination of contracts or subcontracts at the discretion of the U.S. federal, state or local governments, and national governments of other countries.

Trade Secrets and Other Intellectual Property

We rely principally on trade secrets, confidentiality policies and other contractual arrangements to protect much of our intellectual property where we do not believe that patent or copyright protection is appropriate or obtainable.

Research and Development

We have not incurred material costs for company-sponsored research and development activities.

Insurance

Generally, our insurance program covers workers’ compensation and employer’s liability, general liability, automobile liability, professional errors and omissions liability, property, marine property and liability, and contractor’s pollution liability (in addition to other policies for specific projects).  Our insurance program includes deductibles or self-insured retentions for each covered claim.  In addition, our insurance policies contain exclusions and sublimits that insurance providers may use to deny or restrict coverage.  Excess liability, contractor’s pollution liability, and professional liability insurance policies provide for coverages on a “claims-made” basis, covering only claims actually made and reported during the policy period currently in effect.  Thus, if we do not continue to maintain these policies, we will have no coverage for claims made after the termination date even for claims based on events that occurred during the term of coverage.  While we intend to maintain these policies, we may be unable to maintain existing coverage levels.

Employees

The number of our employees varies with the volume, type and scope of our operations at any given time.  As of January 25, 2013, we had more than 54,000 employees, including part-time workers.  The Infrastructure & Environment, Federal Services, Energy & Construction, and Oil & Gas Divisions employed approximately 21,000, 13,000, 9,000, and 11,000 persons (including part-time workers), respectively.  At various times, we have employed up to several thousand workers on a part-time basis to meet our contractual obligations.  Approximately 25% of our employees are covered by collective bargaining agreements or by specific labor agreements, which expire upon completion of the relevant project.

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Executive Officers of the Registrant

Name	Position Held	Age
Martin M. Koffel	Chief Executive Officer (“CEO”), President and Director since May 1989; Chairman of the Board since June 1989.	73
Thomas W. Bishop	Executive Chairman, U.K., Europe & India since January 2013; Senior Vice President of the Infrastructure & Environment Division since January 2011; Vice President, Strategy since July 2003; Senior Vice President, Construction Services since March 2002.	66
Reed N. Brimhall	Chief Accounting Officer since May 2005; Vice President since May 2003; Corporate Controller from May 2003 to January 2012.	59
H. Thomas Hicks	Vice President and Chief Financial Officer (“CFO”) since March 2006.	62
Gary V. Jandegian	President of the Infrastructure & Environment Division and Vice President since July 2003.	60
Susan B. Kilgannon	Vice President, Communications since October 1999.	54
William J. Lingard	President, Oil & Gas Division and Vice President since May 2012; President and CEO of Flint from 2005 to May 2012.	53
Joseph Masters	Secretary since March 2006; General Counsel since July 1997; and Vice President since July 1994.	56
Randall A. Wotring	President of the Federal Services Division and Vice President since November 2004.	56
Robert W. Zaist	President of the Energy & Construction Division since July 2011 and Vice President since May 2012; Senior Executive Vice President Business Development of Energy & Construction Division from January 2008 to July 2011; President of Mining Business Unit for Washington Group International, Inc. (“WGI”) from April 2005 to January 2008.	64

Available Information

Our Annual Reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, are available free of charge on our web site at www.urs.com.  These reports, and any amendments to these reports, are made available on our web site as soon as reasonably practicable after we electronically file or furnish the reports with the Securities and Exchange Commission (“SEC”).  In addition, our Corporate Governance Guidelines, the charters for our Audit, Board Affairs and Compensation Committees, and our Code of Business Conduct and Ethics are available on our web site at www.urs.com under the “Corporate Governance” section.  Any waivers or amendments to our Code of Business Conduct and Ethics will be posted on our web site.  A printed copy of this information is also available without charge by sending a written request to: Corporate Secretary, URS Corporation, 600 Montgomery Street, 26th Floor, San Francisco, CA 94111-2728.

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ITEM 1A.  RISK FACTORS

In addition to our other disclosures set forth or incorporated by reference in this annual report on Form 10-K, the following risk factors could also affect our financial condition and results of operations:

Demand for our services is cyclical and vulnerable to economic downturns and reductions in government and private industry spending.  If the economy weakens or client spending declines further, then our revenues, book of business, profits and our financial condition may deteriorate.

Demand for our services is cyclical and vulnerable to economic downturns and reductions in government spending, such as reductions resulting from uncertainties regarding potential federal sequestration.  Such downturns or reductions could delay, curtail or cancel proposed and existing projects.  Over the past several years, weak economic conditions and volatility in global financial markets have impacted our client spending.

As a result of these unstable economic conditions, some clients delayed, curtailed or cancelled proposed and existing projects and may continue to do so.  For example, our book of business has declined from $27.0 billion as of December 30, 2011 to $24.9 billion as of December 28, 2012.  Also, our clients may demand more favorable pricing terms and find it increasingly difficult to timely pay invoices for our services, which would impact our future cash flows and liquidity.  In addition, any rapid changes in the prices of commodities make it difficult for our clients and us to forecast future capital expenditures.  Inflation or significant changes in interest rates could reduce the demand for our services.  Any inability to timely collect our invoices may lead to an increase in our accounts receivable and potentially to increased write-offs of uncollectible invoices.  If the economy remains weak or uncertain, or client spending declines further, then our revenues, book of business, net income and overall financial condition could deteriorate.

Federal sequestration could significantly reduce government spending for the services we provide.

On August 2, 2011, the Budget Control Act of 2011 was enacted, which could impose an estimated $1.2 trillion in future federal spending cuts, a large portion of which relates to defense spending, if no budget resolution is achieved by March 1, 2013.  If the federal government does not meet the budget deficit targets or does not otherwise delay or change this legislation, then automatic across-the-board budget cuts, or sequestrations, will be mandated across the federal budget in fiscal year 2013 and beyond.  Any significant reduction in federal government spending could reduce demand for our overall services, could cancel or delay existing projects as well as potential projects in our book of business and could lead us to reduce our workforce, which could have a material adverse effect on our results of operation and financial condition.

We may not realize the full amount of revenues reflected in our book of business, particularly in light of the current economic conditions, which could harm our operations and could significantly reduce our expected profits and revenues.

We account for all contract awards that may eventually be recognized as revenues or equity in income of unconsolidated joint ventures as our “book of business,” which includes backlog, option years and IDCs.  As of December 28, 2012, our book of business was estimated at approximately $24.9 billion, which included $13.3 billion of backlog.  Our book of business estimates may not result in realized profits and revenues in any particular period because clients may delay, modify terms or terminate projects and contracts and may decide not to exercise contract options or issue task orders.  This uncertainty is particularly acute in light of current economic conditions as the risk of contracts in backlog being delayed, adjusted in scope or cancelled is more likely to increase during periods of economic uncertainty.  In addition, our government contracts or subcontracts are subject to renegotiation or termination at the convenience of the applicable U.S. federal, state or local governments, as well as national governments of other countries.  Accordingly, if we do not realize a substantial amount of our book of business, our operations could be harmed and our expected profits and revenues could be significantly reduced.

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As a government contractor, we must comply with various procurement laws and regulations and are subject to regular government audits; failure to comply with any of these laws and regulations could result in sanctions, contract termination, forfeiture of profit, harm to our reputation or loss of our status as an eligible government contractor.  Any interruption or termination of our government contractor status, or a loss of our government business, could reduce our profits and revenues significantly.

As a government contractor, we enter into many contracts with federal, state and local government clients.  For example, revenues from our federal market sector represented 40% of our total revenues for the year ended December 28, 2012.  We are affected by and must comply with federal, state, local and foreign laws and regulations relating to the formation, administration and performance of government contracts.  For example, we must comply with FAR, the Truth in Negotiations Act, CAS, American Recovery and Reinstatement Act (“ARRA”), the Services Contract Act, export controls rules and DOD security regulations, as well as many other laws and regulations.  In addition, we must also comply with other government regulations related to employment practices, environmental protection, health and safety, tax, accounting and anti-fraud, as well as many others in order to maintain our government contractor status.  These laws and regulations affect how we transact business with our clients and in some instances, impose additional costs on our business operations.  Even though we take precautions to prevent and deter fraud, misconduct and non-compliance, we face the risk that our employees or outside partners may engage in misconduct, fraud or other improper activities.

Government agencies, such as the U.S. Defense Contract Audit Agency (“DCAA”), routinely audit and investigate government contractors.  These government agencies review and audit a government contractor’s performance under its contracts, a government contractor’s direct and indirect cost structure, and a government contractor’s compliance with applicable laws, regulations and standards.  For example, during the course of its audits, the DCAA may question our incurred project costs and, if the DCAA believes we have accounted for these costs in a manner inconsistent with the requirements for the FAR or CAS, the DCAA auditor may recommend to our U.S. government corporate administrative contracting officer to disallow such costs.  We can provide no assurance that the DCAA or other government audits will not result in material disallowances for incurred costs in the future.  In addition, government contracts are subject to a variety of other socioeconomic requirements relating to the formation, administration, performance and accounting for these contracts.  We may also be subject to qui tam litigation brought by private individuals on behalf of the government under the Federal Civil False Claims Act, which could include claims for treble damages.  Government contract violations could result in the imposition of civil and criminal penalties or sanctions, contract termination, forfeiture of profit, and/or suspension of payment, any of which could make us lose our status as an eligible government contractor.  We could also suffer serious harm to our reputation.  Any interruption or termination of our government contractor status, or a loss of our government business, could reduce our profits and revenues significantly.

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Employee, agent or partner misconduct or failure to comply with anti-bribery and other government laws and regulations could harm our reputation, reduce our revenues and profits, and subject us to criminal and civil enforcement actions.

Misconduct, fraud, non-compliance with applicable laws and regulations, or other improper activities by one of our employees, agents or partners could have a significant negative impact on our business and reputation.  Such misconduct could include the failure to comply with government procurement regulations, regulations regarding the protection of classified information, regulations prohibiting bribery and other foreign corrupt practices, regulations regarding the pricing of labor and other costs in government contracts, regulations on lobbying or similar activities, regulations pertaining to the internal controls over financial reporting, environmental laws and any other applicable laws or regulations.  For example, the United States Foreign Corrupt Practices Act and similar anti-bribery laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments to foreign officials for the purpose of obtaining or retaining business.  In addition, we regularly provide services that may be highly sensitive or that relate to critical national security matters; if a security breach were to occur, our ability to procure future government contracts could be severely limited.

Our policies mandate compliance with these regulations and laws, and we take precautions intended to prevent and detect misconduct.  However, since our internal controls are subject to inherent limitations, including human error, it is possible that these controls could be intentionally circumvented or become inadequate because of changed conditions.  As a result, we cannot assure that our controls will protect us from reckless or criminal acts committed by our employees and agents.  Failure to comply with applicable laws or regulations or acts of misconduct could subject us to fines and penalties, loss of security clearances, and suspension or debarment from contracting, any or all of which could harm our reputation, reduce our revenues and profits and subject us to criminal and civil enforcement actions.

Legal proceedings, investigations and disputes could result in substantial monetary penalties and damages, which could affect us adversely, especially if these penalties and damages exceed or are excluded from existing insurance coverage.

We engage in engineering, construction and technical services that can result in substantial injury or damages that may expose us to legal proceedings, investigations and disputes.  For example, in the ordinary course of our business, we may be involved in legal disputes regarding personal injury and wrongful death claims, employee or labor disputes, professional liability claims, and general commercial disputes involving project cost overruns, indemnification claims and liquidated damages as well as other claims.  See Note 17, “Commitments and Contingencies,” to our “Consolidated Financial Statements” included under Item 8 of this report for a discussion of some of our legal proceedings.  In addition, in the ordinary course of our business, we frequently make professional judgments and recommendations about environmental and engineering conditions of project sites for our clients.  We may be deemed to be responsible for these judgments and recommendations if they are later determined to be inaccurate.  Any unfavorable legal ruling against us could result in substantial monetary damages or even criminal violations.  We maintain insurance coverage as part of our overall legal and risk management strategy to minimize our potential liabilities.  Generally, our insurance program covers workers’ compensation and employer’s liability, general liability, automobile liability, professional errors and omissions liability, property, marine property and liability, and contractor’s pollution liability (in addition to other policies for specific projects).  Our insurance program includes deductibles or self-insured retentions for each covered claim.  In addition, our insurance policies contain exclusions and sublimits that insurance providers may use to deny us insurance coverage.  Excess liability, contractor’s pollution liability, and professional liability insurance policies provide for coverages on a “claims-made” basis, covering only claims actually made and reported during the policy period currently in effect.  If we sustain liabilities that exceed our insurance coverage or for which we are not insured, it could have a material adverse impact on our results of operations and financial condition, including our profits and revenues.

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Unavailability or cancellation of third-party insurance coverage would increase our overall risk exposure as well as disrupt the management of our business operations.

We maintain insurance coverage from third-party insurers as part of our overall risk management strategy and because some of our contracts require us to maintain specific insurance coverage limits.  If any of our third-party insurers fail, suddenly cancel our coverage or otherwise are unable to provide us with adequate insurance coverage then our overall risk exposure and our operational expenses would increase and the management of our business operations would be disrupted.  In addition, there can be no assurance that any of our existing insurance coverage will be renewable upon the expiration of the coverage period or that future coverage will be affordable at the required limits.

We may be subject to substantial liabilities under environmental laws and regulations.

Our services are subject to numerous environmental protection laws and regulations that are complex and stringent.  Our business involves the planning, design, program management, construction and construction management, and operations and maintenance at various sites, including but not limited to pollution control systems, nuclear facilities, hazardous waste and Superfund sites, contract mining sites, hydrocarbon production, distribution and transport sites, military bases and other infrastructure-related facilities.  We also regularly perform work, including oil field and pipeline construction services in and around sensitive environmental areas, such as rivers, lakes and wetlands.  In addition, we have contracts with U.S. federal government entities to destroy hazardous materials, including chemical agents and weapons stockpiles, as well as to decontaminate and decommission nuclear facilities.  These activities may require us to manage, handle, remove, treat, transport and dispose of toxic or hazardous substances.  We also own and operate several properties in the U.S. and Canada that have been used for the storage and maintenance of equipment and upon which hydrocarbons or other wastes may have been disposed or released.  Past business practices at companies that we have acquired may also expose us to future unknown environmental liabilities.

Significant fines, penalties and other sanctions may be imposed for non-compliance with environmental laws and regulations, and some environmental laws provide for joint and several strict liabilities for remediation of releases of hazardous substances, rendering a person liable for environmental damage, without regard to negligence or fault on the part of such person.  These laws and regulations may expose us to liability arising out of the conduct of operations or conditions caused by others, or for our acts that were in compliance with all applicable laws at the time these acts were performed.  For example, there are a number of governmental laws that strictly regulate the handling, removal, treatment, transportation and disposal of toxic and hazardous substances, such as CERCLA, and comparable state laws, that impose strict, joint and several liabilities for the entire cost of cleanup, without regard to whether a company knew of or caused the release of hazardous substances.  In addition, some environmental regulations can impose liability for the entire cleanup upon owners, operators, generators, transporters and other persons arranging for the treatment or disposal of such hazardous substances related to contaminated facilities or project sites.  Other federal environmental, health and safety laws affecting us include, but are not limited to, the Resource Conservation and Recovery Act, the National Environmental Policy Act, the Clean Air Act, the Clean Air Mercury Rule, the Occupational Safety and Health Act, the Toxic Substances Control Act and the Superfund Amendments and Reauthorization Act, as well as other comparable national and state laws.  Liabilities related to environmental contamination or human exposure to hazardous substances, or a failure to comply with applicable regulations could result in substantial costs to us, including cleanup costs, fines and civil or criminal sanctions, third-party claims for property damage or personal injury or cessation of remediation activities.  Our continuing work in the areas governed by these laws and regulations exposes us to the risk of substantial liability.

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Changes in transportation regulations and other factors may increase our costs and negatively impact our profit margins.

We have a large fleet of trucks and other heavy vehicles to transport drilling rigs and provide fluid hauling and other oil and gas services in North America.  We are subject to national, state and Canadian provincial regulations including the permit requirements of highway and safety authorities.  These regulatory authorities exercise broad powers over our transport operations, generally governing such matters as the authorization to engage in transportation operations, safety, equipment testing and specifications and insurance requirements.  The transportation industry is also subject to regulatory and legislative changes that may impact our operations, such as by requiring changes in fuel emissions limits, vehicle air emissions, the hours of service regulations that govern the amount of time a driver may drive or work in any specific period, limits on vehicle weight and size and other matters.  Changes in regulation may increase costs related to truck purchases and maintenance, impair equipment productivity, decrease the residual value of these vehicles and increase operating expenses.

In addition, our transport business is impacted by weather conditions that can restrict our ability to deliver services.  For example, Canadian municipalities and provincial transportation departments enforce seasonal road bans each spring that limit the movement of heavy vehicles and equipment.  Additionally, some Canadian oil and natural gas producing areas are only accessible in the winter months when the ground or waterways are frozen and susceptible to increased risk of accidents.

Proposals to increase taxes, including taxes on motor fuels, are also made from time to time, and any such increase would increase our operating costs.  Also fluctuating fuel prices may negatively affect our profit margins.  We cannot predict whether, or in what form, any legislative or regulatory changes applicable to our trucking operations will be enacted and to what extent any such legislation or regulations could increase our costs or otherwise adversely affect our profit margin and overall business.

Demand for our oil and gas services fluctuates.

In May 2012, we completed our acquisition of Flint, significantly increasing our oil and gas services in North America, particularly to the unconventional segments of this market.  Demand for our oil and gas services fluctuates, and we depend on our customers’ willingness to make future expenditures to explore for, develop and produce oil and natural gas in the U.S. and Canada.  Our customers’ willingness to undertake these activities depends largely upon prevailing industry conditions that are influenced by numerous factors over which we have no control, including:

·   prices, and expectations about future prices, of oil and natural gas;

·   domestic and foreign supply of and demand for oil and natural gas;

·   the cost of exploring for, developing, producing and delivering oil and natural gas;

·   available pipeline, storage and other transportation capacity;

·   availability of qualified personnel and lead times associated with acquiring equipment and products;

·   federal, state and local regulation of oilfield activities;

·   environmental concerns regarding the methods our customers use to extract natural gas;

·   the availability of water resources and the cost of disposal and recycling services; and

·   seasonal limitations on access to work locations.

Anticipated future prices for natural gas and crude oil are a primary factor affecting spending and drilling activity by our customers.  Lower prices or volatility in prices for oil and natural gas typically decrease spending and drilling activity, which can cause rapid and material declines in demand for our services and in the prices we are able to charge for our services.  In addition, should the proposed Keystone XL pipeline project application be denied or delayed by the federal government, then there may be a slowing of spending in the development of the Canadian oil sands.  Worldwide political, economic, military and terrorist events, as well as natural disasters and other factors beyond our control contribute to oil and natural gas price levels and volatility and are likely to continue to do so in the future.

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Our failure to conduct due diligence effectively or our inability to integrate acquisitions successfully could impede us from realizing all of the anticipated benefits of future acquisitions, which could severely weaken our results of operations.

Historically, we have used acquisitions to help expand our business.  If we fail to conduct due diligence on our potential targets effectively, we may, for example, not identify problems at target companies or fail to recognize incompatibilities or other obstacles to successful integration.  Our inability to successfully integrate future acquisitions could disrupt our business and impede us from realizing all of the anticipated benefits of those acquisitions, severely weakening our business operations and adversely impacting our results of operations.  In addition, the overall integration of two combining companies may result in unanticipated problems, expenses, liabilities, competitive responses, loss of customer relationships, and diversion of management’s attention, and may cause our stock price to decline.  The difficulties of integrating an acquisition include, among others:

·   unanticipated issues in integrating information, communications and other systems;

·   unanticipated incompatibility of logistics, marketing and administration methods;

·   maintaining employee morale and retaining key employees;

·   integrating the business cultures of both companies;

·   preserving important strategic and customer relationships;

·   consolidating corporate and administrative infrastructures and eliminating duplicative operations;

·   the diversion of management’s attention from ongoing business concerns; and

·   integrating geographically separate organizations.

In addition, even if the operations of an acquisition are integrated successfully, we may not realize the full benefits of the acquisition, including the synergies, cost savings, or sales or growth opportunities that we expect.  These benefits may not be achieved within the anticipated time frame, or at all.

Our inability to win or renew government contracts during regulated procurement processes could harm our operations and reduce our profits and revenues.

Revenues from our federal market sector represented 40% of our total revenues for the year ended December 28, 2012.  Government contracts are awarded through a regulated procurement process.  The federal government has increasingly relied upon multi-year contracts with pre-established terms and conditions, such as IDCs, that generally require those contractors that have previously been awarded the IDC to engage in an additional competitive bidding process before a task order is issued.  In addition, we believe that there has been an increase in the award of federal contracts based on a low-price, technically acceptable criteria emphasizing price over qualitative factors, such as past performance.  As a result, pricing pressure may reduce our profit margins on future federal contracts.  The increased competition and pricing pressure, in turn, may require us to make sustained efforts to reduce costs in order to realize revenues and profits under government contracts.  If we are not successful in reducing the amount of costs we incur, our profitability on government contracts will be negatively impacted.  In addition, the U.S. government has scaled back outsourcing of some types of services in favor of “insourcing” jobs to its employees.  Moreover, even if we are qualified to work on a government contract, we may not be awarded the contract because of existing government policies designed to protect small businesses and under-represented minority contractors.  Our inability to win or renew government contracts during regulated procurement processes could harm our operations and reduce our profits and revenues.

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Each year, client funding for some of our government contracts may rely on government appropriations or public-supported financing.  If adequate public funding is delayed or is not available, then our profits and revenues could decline.

Each year, client funding for some of our government contracts may directly or indirectly rely on government appropriations or public-supported financing such as the ARRA, which provides funding for various clients’ state transportation projects.  Legislatures may appropriate funds for a given project on a year-by-year basis, even though the project may take more than one year to perform.  In addition, public-supported financing such as state and local municipal bonds, may be only partially raised to support existing infrastructure projects.  As a result, a project we are currently working on may be only partially funded and thus additional public funding may be required in order to complete our contract.  On August 2, 2011, the Budget Control Act of 2011 was enacted, which could impose an estimated $1.2 trillion in future federal spending cuts (a large portion of which is defense-related) if no budget resolution is achieved by March 1, 2013.  If the federal government does not meet the budget deficit targets or does not otherwise delay or change this legislation, then automatic across-the-board budget cuts, or sequestrations, will be mandated across the federal budget in fiscal year 2013 and beyond that could result in reductions in the funding proposed by the Administration for infrastructure, defense and other projects.  Similarly, the impact of the economic downturn on state and local governments may make it more difficult for them to fund infrastructure projects.  In addition to the state of the economy and competing political priorities, public funding and the timing of payment of these funds may also be influenced by, among other things, curtailments in the use of government contractors, a rise in the cost of raw materials, delays associated with a lack of a sufficient number of government staff to oversee contracts, budget constraints, the timing and amount of tax receipts and the overall level of government expenditures.  If adequate public funding is not available or is delayed, then our profits and revenues could decline.

Our government contracts may give government agencies the right to modify, delay, curtail, renegotiate or terminate existing contracts at their convenience at any time prior to their completion, which may result in a decline in our profits and revenues.

Government projects in which we participate as a contractor or subcontractor may extend for several years.  Generally, government contracts include the right for government agencies to modify, delay, curtail, renegotiate or terminate contracts and subcontracts at their convenience any time prior to their completion.  Any decision by a government client to modify, delay, curtail, renegotiate or terminate our contracts at their convenience may result in a decline in our profits and revenues.

A decline in defense or other federal government spending, or a change in budgetary priorities, could reduce our profits and revenues.

Revenues from our federal market sector represented 40% of our total revenues and contracts, of which the DOD and other defense-related clients represented approximately 26% of our total revenues for the year ended December 28, 2012.  On August 2, 2011, the Budget Control Act of 2011 was enacted, which could impose an estimated $1.2 trillion in future federal spending cuts (a large portion of which is defense-related) if no budget resolution is achieved by March 1, 2013.  If the federal government does not meet the budget deficit targets or does not otherwise delay or change this legislation, then automatic across-the-board budget cuts, or sequestrations, will be mandated across the federal budget in fiscal year 2013 and beyond that could result in reductions in the funding proposed by the Administration for infrastructure, defense and other projects.  There is also an increase in the award of federal contracts based on a low-price, technically acceptable criteria emphasizing price over qualitative factors, such as past performance.  As a result, pricing pressure may reduce our profit margins on future federal contracts.Future levels of expenditures and authorizations for defense-related or other federal programs, including foreign military commitments, may decrease, remain constant or shift to programs in areas where we do not currently provide services.  As a result, a general decline in defense or other federal spending or a change in budgetary priorities could reduce our profits and revenues.

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If our goodwill or intangible assets become impaired, then our profits will be reduced.

If our goodwill or intangible assets become impaired, then our profits will be reduced.  For example, during the quarter ended September 30, 2011, a decline in our stock price and market capitalization triggered an interim impairment test, which resulted in a goodwill impairment charge of $825.8 million for the year ended December 30, 2011.  Goodwill may be impaired if the estimated fair value of one or more of our reporting units is less than the carrying value of the respective reporting unit.  Because we have grown in part through acquisitions, goodwill and other intangible assets represent a substantial portion of our assets.  Goodwill and other net intangible assets were $3.9 billion as of December 28, 2012.  We perform an analysis on our goodwill balances to test for impairment on an annual basis and whenever events occur that indicate impairment could exist.  There are several instances that may cause us to further test our goodwill for impairment between the annual testing periods including the following:

·   continued deterioration of market and economic conditions that may adversely impact our ability to meet our projected results;

·   declines in our stock price caused by continued volatility in the financial markets that may result in increases in our weighted-average cost of capital or other inputs to our goodwill assessment;

·   the occurrence of events that may reduce the fair value of a reporting unit below its carrying amount, such as the sale of a significant portion of one or more of our reporting units; and

·   automatic across-the-board budget cuts, or sequestrations mandated by the federal government that could result in the reductions in the funding proposed by the Administration for our infrastructure, defense and other projects.

We also perform an analysis of our intangible assets to test for impairment whenever events occur that indicate impairment could exist.  The following are examples of such events:

·   significant adverse changes in the intangible asset’s market value, useful life, or in the business climate that could affect its value;

·   a current-period operating or cash flow loss or a projection or forecast that demonstrates continuing losses associated with the use of the intangible asset; and

·   a current expectation that, more likely than not, the intangible asset will be sold or otherwise disposed of before the end of its previously estimated useful life.

If we are unable to accurately estimate and control our contract costs, then we may incur losses on our contracts, which could decrease our operating margins and reduce our profits.

It is important for us to accurately estimate and control our contract costs so that we can maintain positive operating margins and profitability.  We generally enter into four principal types of contracts with our clients:  cost-plus, fixed-price, target-price and time-and-materials.

Under cost-plus contracts, which may be subject to contract ceiling amounts, we are reimbursed for allowable costs and fees, which may be fixed or performance-based.  If our costs exceed the contract ceiling or are not allowable under the provisions of the contract or any applicable regulations, we may not be reimbursed for all of the costs we incur.  Under fixed-price contracts, we receive a fixed price regardless of what our actual costs will be.  Consequently, we realize a profit on fixed-price contracts only if we can control our costs and prevent cost over-runs on our contracts.  Under target-price contracts, project costs are reimbursable and our fee is established against a target budget that is subject to changes in project circumstances and scope.  Under time-and-materials contracts, we are paid for labor at negotiated hourly billing rates and for other expenses.

If we are unable to accurately estimate and manage our costs, we may incur losses on our contracts, which could decrease our operating margins and significantly reduce or eliminate our profits.  Many of our contracts require us to satisfy specified design, engineering, procurement or construction milestones in order to receive payment for the work completed or equipment or supplies procured prior to achieving the applicable milestone.  As a result, under these types of arrangements, we may incur significant costs or perform significant amounts of work prior to receipt of payment.  If the customer determines not to proceed with the completion of the project or if the customer defaults on its payment obligations, we may encounter difficulties in collecting payment of amounts due to us for the costs previously incurred or for the amounts previously expended to purchase equipment or supplies.

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Our actual business and financial results could differ from the estimates and assumptions that we use to prepare our financial statements, which may reduce our profits.

To prepare financial statements in conformity with generally accepted accounting principles (“GAAP”), management is required to make estimates and assumptions, which affect the reported values of assets and liabilities, revenues and expenses, and disclosures of contingent assets and liabilities.  For example, we may recognize revenues over the life of a contract based on the proportion of costs incurred to date compared to the total costs estimated to be incurred for the entire project.  Areas requiring significant estimates by our management include:

·   the application of the percentage-of-completion method of revenue recognition on contracts, change orders and contract claims;

·   provisions for uncollectible receivables and customer claims and recoveries of costs from subcontractors, vendors and others;

·   provisions for income taxes and related valuation allowances;

·   impairment of goodwill and recoverability of other intangible assets;

·   valuation of assets acquired and liabilities assumed in connection with business combinations;

·   valuation of defined benefit pension plans and other employee benefit plans;

·   valuation of stock-based compensation expense; and

·   accruals for estimated liabilities, including litigation and insurance reserves.

Our actual business and financial results could differ from those estimates, which may reduce our profits.

Our profitability could suffer if we are not able to maintain adequate utilization of our workforce.

The cost of providing our services, including the extent to which we utilize our workforce, affects our profitability.  The rate at which we utilize our workforce is affected by a number of factors, including:

·   our ability to transition employees from completed projects to new assignments and to hire and assimilate new employees;

·   our ability to forecast demand for our services and thereby maintain an appropriate headcount in each of our geographies and workforces;

·   our ability to manage attrition;

·   our need to devote time and resources to training, business development, professional development and other non-chargeable activities; and

·   our ability to match the skill sets of our employees to the needs of the marketplace.

If we overutilize our workforce, our employees may become disengaged, which will impact employee attrition.  If we underutilize our workforce, our profit margin and profitability could suffer.

Our use of the percentage-of-completion method of revenue recognition could result in a reduction or reversal of previously recorded revenues and profits.

A substantial portion of our revenues and profits are measured and recognized using the percentage-of-completion method of revenue recognition.  Our use of this accounting method results in recognition of revenues and profits ratably over the life of a contract, based generally on the proportion of costs incurred to date to total costs expected to be incurred for the entire project.  The effects of revisions to revenues and estimated costs are recorded when the amounts are known or can be reasonably estimated.  Such revisions could occur in any period and their effects could be material.  Although we have historically made reasonably reliable estimates of the progress towards completion of long-term engineering, program management, construction management or construction contracts, the uncertainties inherent in the estimating process make it possible for actual costs to vary materially from estimates, including reductions or reversals of previously recorded revenues and profits.

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Our failure to successfully bid on new contracts and renew existing contracts could reduce our profits.

Our business depends on our ability to successfully bid on new contracts and renew existing contracts with private and public sector clients.  Contract proposals and negotiations are complex and frequently involve a lengthy bidding and selection process, which are affected by a number of factors, such as market conditions, financing arrangements and required governmental approvals.  For example, a client may require us to provide a surety bond or letter of credit to protect the client should we fail to perform under the terms of the contract.  If negative market conditions arise, or if we fail to secure adequate financial arrangements or the required governmental approval, we may not be able to pursue particular projects, which could adversely reduce or eliminate our profitability.

If we fail to timely complete, miss a required performance standard or otherwise fail to adequately perform on a project, then we may incur a loss on that project, which may reduce or eliminate our overall profitability and harm our reputation.

We may commit to a client that we will complete a project by a scheduled date.  We may also commit that a project, when completed, will achieve specified performance standards.  If the project is not completed by the scheduled date or fails to meet required performance standards, we may either incur significant additional costs or be held responsible for the costs incurred by the client to rectify damages due to late completion or failure to achieve the required performance standards.  In addition, performance of projects can be affected by a number of factors beyond our control, including unavoidable delays from governmental inaction, public opposition, inability to obtain financing, weather conditions, unavailability of vendor materials, changes in the project scope of services requested by our clients, industrial accidents, environmental hazards, labor disruptions and other factors.  In some cases, should we fail to meet required performance standards, we may also be subject to agreed-upon financial and liquidated damages, which are determined by the contract.  To the extent that these events occur, the total costs of the project could exceed our estimates and we could experience reduced profits or, in some cases, incur a loss on a project, which may reduce or eliminate our overall profitability.  Failure to meet performance standards or complete performance on a timely basis could also adversely affect our reputation.

If our partners fail to perform their contractual obligations on a project, we could be exposed to substantial joint and several liability and financial penalties that could reduce our profits and revenues.

We often partner with unaffiliated third parties, individually or via a joint venture, to jointly bid on and perform a particular project.  For example, for the year ended December 28, 2012, our equity in income of unconsolidated joint ventures amounted to $107.6 million.  The success of our partnerships and joint ventures depends, in large part, on the satisfactory performance of contractual obligations by each member.  In addition, when we operate through a joint venture in which we are a minority holder, we have limited control over many project decisions, including decisions related to the joint venture’s internal controls, which may not be subject to the same internal control procedures that we employ.  If these unaffiliated third parties do not fulfill their contract obligations, the partnerships or joint ventures may be unable to adequately perform and deliver their contracted services.  Under these circumstances, we may be obligated to pay financial penalties, provide additional services to ensure the adequate performance and delivery of the contracted services and may be jointly and severally liable for the other’s actions or contract performance.  These additional obligations could result in reduced profits and revenues or, in some cases, significant losses for us with respect to the joint venture, which could also affect our reputation in the industries we serve.

Our dependence on third-party subcontractors and equipment and material providers could reduce our profits or result in project losses.

We rely on third-party subcontractors and equipment and material providers.  For example, we procure heavy equipment and construction materials as needed when performing large construction and contract mining projects.  To the extent that we cannot engage subcontractors or acquire equipment and materials at reasonable costs or if the amount we are required to pay exceeds our estimates, our ability to complete a project in a timely fashion or at a profit may be impaired.  In addition, if a subcontractor or a manufacturer is unable to deliver its services, equipment or materials according to the negotiated terms for any reason, including the deterioration of its financial condition, we may be required to purchase the services, equipment or materials from another source at a higher price.  This may reduce the profit to be realized or result in a loss on a project for which the services, equipment or materials are needed.

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If we experience delays and/or defaults in client payments, we could suffer liquidity problems or we may be unable to recover all working capital or equity investments.

Because of the nature of our contracts, at times we may commit resources to a client’s projects before receiving payments to cover our expenditures.  Sometimes, we incur and record expenditures for a client project before receiving any payment to cover our expenses.  In addition, we may make equity investments in majority or minority controlled large-scale client projects and other long-term capital projects before the project completes operational status or completes its project financing.  If a client delays or defaults in making its payments on a project, it could have an adverse effect on our financial position and cash flows, and we could incur losses, including losses in our working capital or equity investments.

Our failure to adequately recover on claims brought by us against project owners for additional contract costs could have a negative impact on our liquidity and profitability.

We have brought claims against project owners for additional costs exceeding the contract price or for amounts not included in the original contract price.  These types of claims occur due to matters such as owner-caused delays or changes from the initial project scope, both of which may result in additional cost.  Often, these claims can be the subject of lengthy arbitration or litigation proceedings, and it is difficult to accurately predict when these claims will be fully resolved.  When these types of events occur and unresolved claims are pending, we have used working capital in projects to cover cost overruns pending the resolution of the relevant claims.  A failure to promptly recover on these types of claims could have a negative impact on our liquidity and profitability.

Maintaining adequate bonding capacity is necessary for us to successfully bid on and win fixed-price contracts.

In line with industry practice, we are often required to provide performance or payment bonds to clients under fixed-price contracts.  These bonds indemnify the client should we fail to perform our obligations under the contract.  If a bond is required for a particular project and we are unable to obtain an appropriate bond, we cannot pursue that project.  We have bonding capacity but, as is typically the case, the issuance of a bond is at the surety’s sole discretion.  Moreover, due to events that affect the insurance and bonding markets generally, bonding may be more difficult to obtain in the future or may only be available at significantly higher costs.  There can be no assurance that our bonding capacity will continue to be available to us on reasonable terms.  Our inability to obtain adequate bonding and, as a result, to bid on new fixed-price contracts could have a material adverse effect on our business, financial condition, results of operations and cash flows.

Our project sites are inherently dangerous workplaces.  Failure to maintain safe work sites and equipment could result in environmental disasters, employee deaths or injuries, reduced profitability, the loss of projects or clients and possible exposure to litigation.

Our project sites often put our employees and others in close proximity with mechanized equipment, moving vehicles, chemical and manufacturing processes, and highly regulated materials.  For example, our Oil & Gas Division manages flammable hydrocarbons and, as a result, any service issues or equipment failures could result in uncontrolled flows of oil, gas, or well fluids, fires, spills and explosions.  On many sites, we are responsible for safety and, accordingly, must implement safety procedures.  If we fail to implement these procedures or if the procedures we implement are ineffective, we may suffer the loss of or injury to our employees, as well as expose ourselves to possible litigation.  As a result, our failure to maintain adequate safety standards and equipment could result in reduced profitability or the loss of projects or clients, and could have a material adverse impact on our business, financial condition, and results of operations.

Changes in environmental, defense, or infrastructure industry laws could directly or indirectly reduce the demand for our services, which could in turn negatively impact our revenues.

Some of our services are directly or indirectly impacted by changes in federal, state, local or foreign laws and regulations pertaining to the environmental, defense or infrastructure industries.  Proposed climate change and greenhouse gas regulations, if adopted, could impact the services we provide to our clients, including services related to fossil fuel and industrial projects.  Relaxation or repeal of laws and regulations, or changes in governmental policies regarding the environmental, defense or infrastructure industries could result in a decline in demand for our services, which could in turn negatively impact our revenues.

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If we do not have adequate indemnification for our services related to nuclear materials, it could adversely affect our business and financial condition.

We provide services to the DOE relating to its nuclear weapons facilities and the nuclear energy industry in the ongoing maintenance and modification, as well as the decontamination and decommissioning, of its nuclear energy plants.  Indemnification provisions under the Price-Anderson Act (“PAA”) available to nuclear energy plant operators and DOE contractors, do not apply to all liabilities that we might incur while performing services as a radioactive materials cleanup contractor for the DOE and the nuclear energy industry.  If the PAA’s indemnification protection does not apply to our services or if our exposure occurs outside the U.S., our business and financial condition could be adversely affected either by our client’s refusal to retain us, by our inability to obtain commercially adequate insurance and indemnification, or by potentially significant monetary damages we may incur.

If our reports and opinions are not in compliance with professional standards and other regulations, we could be subject to monetary damages and penalties.

We issue reports and opinions to clients based on our professional engineering expertise, as well as our other professional credentials.  Our reports and opinions may need to comply with professional standards, licensing requirements, securities regulations and other laws and rules governing the performance of professional services in the jurisdiction where the services are performed.  In addition, we could be liable to third parties who use or rely upon our reports or opinions even if we are not contractually bound to those third parties.  For example, if we deliver an inaccurate report or one that is not in compliance with the relevant standards, and that report is made available to a third party, we could be subject to third-party liability, resulting in monetary damages and penalties.

Our overall market share and profits will decline if we are unable to compete successfully in our industry.

Our industry is highly fragmented and intensely competitive.  For example, according to the publication Engineering News-Record, based on voluntarily reported information, the top ten U.S. engineering design firms accounted for approximately only 43% of the total top 500 U.S. design firm revenues in 2011.  The top 25 U.S. contractors accounted for approximately 48% of the top 400 U.S. contractors’ total revenues in 2011, as reported by the Engineering News-Record.  Our competitors are numerous, ranging from small private firms to multi-billion dollar companies.  In addition, the technical and professional aspects of some of our services generally do not require large upfront capital expenditures and provide limited barriers against new competitors.

Some of our competitors have achieved greater market penetration in some of the markets in which we compete and have substantially more financial resources and/or financial flexibility than we do.  As a result of the number of competitors in the industry, our clients may select one of our competitors on a project due to competitive pricing or a specific skill set.  If we are unable to maintain our competitiveness, our market share, revenues and profits will decline.  If we are unable to meet these competitive challenges, we could lose market share to our competitors and experience an overall reduction in our profits.

Our failure to attract and retain key employees could impair our ability to provide services to our clients and otherwise conduct our business effectively.

As a professional and technical services company, we are labor intensive, and, therefore, our ability to attract, retain and expand the number of key employees is an important factor in determining our future success.  From time to time, it may be difficult to attract and retain qualified individuals with the expertise and in the timeframe demanded by our clients.  For example, some of our government contracts may require us to employ only individuals who have particular government security clearance levels.  We may occasionally enter into contracts before we have hired or retained appropriate staffing for that project.  In addition, we rely heavily upon the expertise and leadership of our senior management.  If we are unable to retain executives and other key personnel, the roles and responsibilities of those employees will need to be filled, which may require that we devote time and resources to identify, hire and integrate new employees.  In addition, the failure to attract and retain key individuals could impair our ability to provide services to our clients and conduct our business effectively.

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We may be required to contribute additional cash to meet any underfunded benefit obligations associated with retirement and post-retirement benefit plans we manage or multiemployer pension plans we participate in.

We have various employee benefit plan obligations that require us to make contributions to satisfy, over time, our underfunded benefit obligations, which are generally determined by calculating the projected benefit obligations minus the fair value of plan assets.  For example, as of December 28, 2012, our defined benefit pension and post-retirement benefit plans were projected to be underfunded by $324.8 million.  See Note 14, “Employee Retirement and Post-Retirement Benefit Plans,” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report for additional disclosure.  This amount does not include any potential obligations we may owe under various third-party multiemployer plans.  In the future, our benefit plan obligations may increase or decrease depending on changes in the levels of interest rates, pension plan asset performance and other factors.  If we are required to contribute a significant amount of the deficit for underfunded benefit plans, our cash flows could be materially and adversely affected.

A multiemployer pension plan is typically established under a collective bargaining agreement with a union to cover the union-represented workers of various unrelated companies.  Our collective bargaining agreements with unions typically require us to contribute to various multiemployer pension plans; however, we do not control or manage these plans.  For the year ended December 28, 2012, we contributed $48.2 million to multiemployer pension plans.  Under the Employee Retirement Income Security Act, an employer who contributes to a multiemployer pension plan, absent an applicable exemption, may also be liable, upon termination or withdrawal from the plan, for its proportionate share of the multiemployer pension plan’s unfunded vested benefit.  If we terminate or withdraw from a multiemployer plan, absent an applicable exemption (such as for some plans in the building and construction industry), we could be required to contribute a significant amount of cash to fund the multiemployer plan’s unfunded vested benefit, which could materially and adversely affect our financial results; however, since we do not control the multiemployer plans, we are unable to estimate any potential contributions that could be required.

Our outstanding indebtedness could adversely affect our liquidity, cash flows and financial condition.

As of December 28, 2012, the outstanding balance of the term loan under our 2011 Credit Facility was $670.0 million.  We had an outstanding balance of $100.5 million under our revolving line of credit as of December 28, 2012.  In addition, in March 2012, we issued $1.0 billion of Senior Notes in connection with the acquisition of Flint.  As part of the acquisition, we also guaranteed Canadian Notes (previously issued by Flint) with outstanding face values of $175.8 million maturing on June 15, 2019, accruing interest at a rate of 7.5% per annum and payable semi-annually.  This level of debt might:

·   increase our vulnerability to, and limit flexibility in planning for, adverse economic and industry conditions;

·   adversely affect our ability to obtain surety bonds;

·   affect our credit rating;

·   limit our ability to obtain additional financing to fund future working capital, capital expenditures, additional acquisitions and other general corporate initiatives; and

·   limit our ability to apply proceeds from an asset sale to purposes other than the servicing and repayment of debt.

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We may not be able to generate or borrow enough cash to service our indebtedness, which could result in bankruptcy or otherwise impair our ability to maintain sufficient liquidity to continue our operations.

We rely primarily on our ability to generate cash from operations to service our indebtedness in the future.  If we do not generate sufficient cash flows to meet our debt service and working capital requirements, we may need to seek additional financing.  If we are unable to obtain financing on terms that are acceptable to us, we could be forced to sell our assets or those of our subsidiaries to make up for any shortfall in our payment obligations under unfavorable circumstances.  Our 2011 Credit Facility limits our ability to sell assets and also restricts our use of the proceeds from any such sale.  If we default on our debt obligations, our lenders could require immediate repayment of our entire outstanding debt.  If our lenders require immediate repayment on the entire principal amount, we will not be able to repay them in full, and our inability to meet our debt obligations could result in bankruptcy or otherwise impair our ability to maintain sufficient liquidity to continue our operations.

Because URS Corporation, the parent company, is a holding company, we may not be able to service our debt if our subsidiaries do not make sufficient distributions to us.

Our parent company has no direct operations and no significant assets other than investments in the stock of our subsidiaries.  Because we conduct our business operations through our operating subsidiaries, we depend on those entities for payments and dividends to generate the funds necessary to meet our financial obligations.  Although there are currently no material legal restrictions on our operating subsidiaries’ ability to distribute assets to us, legal restrictions, including governmental regulations and contractual obligations, could restrict or impair our operating subsidiaries’ ability to pay dividends or make loans or other distributions to us in the future.  Legal restrictions, including state and local tax regulations and other contractual obligations could restrict or impair our subsidiaries’ ability to pay dividends or make loans or other distributions to us.  The earnings from, or other available assets of, these operating subsidiaries may not be sufficient to make distributions to enable us to pay interest on our debt obligations when due or to pay the principal of such debt at maturity.

Restrictive covenants and other restrictions in our credit and debt arrangements may restrict our ability to pursue business strategies.

Our 2011 Credit Facility, Senior Notes, Canadian Notes, and our other outstanding indebtedness include covenants and restrictions potentially limiting our ability to, among other things:

·   incur additional indebtedness;

·   pay dividends to our stockholders;

·   repurchase or redeem our stock;

·   repay indebtedness that is junior to our 2011 Credit Facility;

·   make investments and other restricted payments;

·   create liens securing debt or other encumbrances on our assets;

·   enter into sale-leaseback transactions;

·   enter into transactions with our stockholders and affiliates; and

·   sell or exchange assets.

Our 2011 Credit Facility also requires that we maintain various financial ratios, which we may not be able to achieve.  The covenants may impair our ability to finance future operations or capital needs or to engage in other favorable business activities.

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Our international operations are subject to a number of risks that could significantly reduce our profits and revenues or subject us to criminal and civil enforcement actions.

As a multinational company, we derived approximately 20% of our revenues from international operations for the year ended December 28, 2012.  International business is subject to a variety of potential risks, including:

·   lack of developed legal systems to enforce contractual rights;

·   greater risk of uncollectible accounts and longer collection cycles;

·   foreign currency exchange volatility;

·   uncertain and changing tax rules, regulations and rates;

·   logistical and communication challenges;

·   potentially adverse changes in laws and regulatory practices;

·   changes in labor conditions;

·   general economic, political and financial conditions in foreign markets; and

·   exposure to civil or criminal liability under the Foreign Corrupt Practices Act, the U.K. Bribery Act, the Canadian Corruption of Foreign Public Officials Act, the Corporate Manslaughter and Corporate Homicide Act, the anti-boycott rules, trade and export control regulations, as well as other international regulations.

International risks and violations of international regulations may significantly reduce our profits and revenues and subject us to criminal or civil enforcement actions, including fines, suspensions or disqualification from future U.S. federal procurement contracting.  Although we have policies and procedures to monitor legal and regulatory compliance, our employees, subcontractors and agents could take actions that violate these requirements.  As a result, our international risk exposure may be more or less than the percentage of revenues attributed to our international operations.

We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act of 2010 and similar worldwide anti-bribery laws.

The U.S. Foreign Corrupt Practices Act and similar anti-bribery laws generally prohibit companies and their intermediaries from making improper payments to foreign government officials for the purpose of obtaining or retaining business.  The U.K. Bribery Act of 2010 prohibits both domestic and international bribery, as well as bribery across both private and public sectors.  In addition, an organization that “fails to prevent bribery” by anyone associated with the organization can be charged under the U.K. Bribery Act unless the organization can establish the defense of having implemented “adequate procedures” to prevent bribery.  Our policies mandate compliance with these anti-bribery laws, and we have established policies and procedures designed to monitor compliance with these anti-bribery law requirements; however we cannot ensure that our policies and procedures will protect us from potential reckless or criminal acts committed by individual employees or agents.  If we are found to be liable for anti-bribery law violations, we could suffer from criminal or civil penalties or other sanctions that could have a material adverse effect on our business.

We could be adversely impacted if we fail to comply with domestic and international export laws.

To the extent we export technical services, data and products outside of the U.S., we are subject to U.S. and international laws and regulations governing international trade and exports, including but not limited to the International Traffic in Arms Regulations, the Export Administration Regulations and trade sanctions against embargoed countries.  A failure to comply with these laws and regulations could result in civil or criminal sanctions, including the imposition of fines, the denial of export privileges and suspension or debarment from participation in U.S. government contracts, which could have a material adverse effect on our business.

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Our international operations may require our employees to travel to and work in high security risk countries, which may result in employee death or injury, repatriation costs or other unforeseen costs.

As a multinational company, some of our employees often travel to and work in high security risk countries around the world that are undergoing political, social and economic upheavals resulting in war, civil unrest, criminal activity, acts of terrorism, or public health crises.  For example, we have employees working in high security risk countries located in the Middle East and Southwest Asia.  As a result, we risk loss of or injury to our employees and may be subject to costs related to employee death or injury, repatriation or other unforeseen circumstances.

We develop, install and maintain IT systems for ourselves, as well as for various customers.  Any breach of security, disruption, or unexpected data or vendor loss could result in business interruptions, remediation costs, legal claims and significant damage to our reputation.

We develop, install and maintain IT systems for ourselves, as well as for customers.  For example, our June 2011 acquisition of Apptis Holdings, Inc. (“Apptis”) significantly increased our network management, software engineering, and information technology infrastructure design services to the DOD and other federal agencies.  Client contracts for the performance of IT services, as well as various privacy and securities laws, require us to manage and protect sensitive and confidential information from disclosure.  We also need to protect our own internal trade secrets and other business confidential information from disclosure.  Regardless of the countermeasures we may establish, we may be subject to network, software or hardware failures, whether caused by us, third-party service providers, intruders or hackers, computer viruses, natural disasters, power shortages or terrorist attacks.  Any breach of security, disruption or unexpected data loss could result in business interruptions, remediation costs, legal claims and significant damage to our reputation.

We also rely on third-party internal and outsourced software to run our critical accounting, project management and financial information systems.  For example, we rely on one software vendor’s products to process a majority of our total revenues.  We also depend on our software vendors to provide long-term software maintenance support for our information systems.  Software vendors may decide to discontinue further development, integration or long-term software maintenance support for our information systems, in which case we may need to abandon one or more of our current information systems and migrate some or all of our accounting, project management and financial information to other systems, thus increasing our operational expense, as well as disrupting the management of our business operations.

Force majeure events, including disasters and terrorists’ actions, have negatively impacted and could further negatively impact our business, which may affect our financial condition, results of operations or cash flows.

Force majeure or extraordinary events beyond the control of the contracting parties, such as natural and man-made disasters, as well as terrorist actions, could negatively impact the economies in which we operate.  For example, in 2012, Superstorm Sandy caused severe floods on the East Coast, closing several offices and interrupting a number of active client projects.  In addition, during the September 11, 2001 terrorist attacks, a number of employees lost their lives and many client records were destroyed when our office at the World Trade Center was destroyed.

We typically remain obligated to perform our services after such extraordinary events unless the contract contains a force majeure clause relieving us of our contractual obligations in such an extraordinary event.  If we are not able to react quickly to force majeure events, our operations may be affected significantly, which would have a negative impact on our financial condition, results of operations and/or cash flows.

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Negotiations with labor unions and possible work actions could divert management attention and disrupt operations.  In addition, new collective bargaining agreements or amendments to agreements could increase our labor costs and operating expenses.

As of December 28, 2012, approximately 25% of our employees were covered by collective bargaining agreements.  The outcome of any future negotiations relating to union representation or collective bargaining agreements may not be favorable to us.  We may reach agreements in collective bargaining that increase our operating expenses and lower our net income as a result of higher wages or benefit expenses.  In addition, negotiations with unions could divert management attention and disrupt operations, which may adversely affect our results of operations.  If we are unable to negotiate acceptable collective bargaining agreements, we may have to address the threat of union-initiated work actions, including strikes.  Depending on the nature of the threat or the type and duration of any work action, these actions could disrupt our operations and adversely affect our operating results.

We have a limited ability to protect our intellectual property rights, which are important to our success.  Our failure to protect our intellectual property rights could adversely affect our competitive position.

Our success depends, in part, upon our ability to protect our proprietary information and other intellectual property.  We rely principally on a combination of trademark, copyright, trade secrets, confidentiality policies and other contractual arrangements to protect much of our intellectual property.  Trade secrets are generally difficult to protect.  Although our employees are subject to confidentiality obligations, this protection may be inadequate to deter or prevent misappropriation of our confidential information.  In addition, we may be unable to detect unauthorized use of our intellectual property or otherwise take appropriate steps to enforce our rights.  Failure to obtain or maintain our intellectual property rights would adversely affect our competitive business position.  In addition, if we are unable to prevent third parties from infringing or misappropriating our intellectual property, our competitive position could be adversely affected.

Delaware law and our charter documents may impede or discourage a merger, takeover or other business combination even if the business combination would have been in the best interests of our stockholders.

We are a Delaware corporation and the anti-takeover provisions of Delaware law impose various impediments to the ability of a third party to acquire control of us, even if a change in control would be beneficial to our stockholders.  In addition, our Board of Directors has the power, without stockholder approval, to designate the terms of one or more series of preferred stock and issue shares of preferred stock, which could be used defensively if a takeover is threatened.  Our incorporation under Delaware law, the ability of our Board of Directors to create and issue a new series of preferred stock and provisions in our certificate of incorporation and bylaws, such as those relating to advance notice of certain stockholder proposals and nominations, could impede a merger, takeover or other business combination involving us or discourage a potential acquirer from making a tender offer for our common stock, even if the business combination would have been in the best interests of our current stockholders.

Our stock price could become more volatile and stockholders’ investments could lose value.

In addition to the macroeconomic factors that have recently affected the prices of many securities generally, all of the factors discussed in this section could affect our stock price.  The timing of announcements in the public markets regarding new services or potential problems with the performance of services by us or our competitors or any other material announcements could affect our stock price.  Speculation in the media and analyst community, changes in recommendations or earnings estimates by financial analysts, changes in investors’ or analysts’ valuation measures for our stock and market trends unrelated to our stock can cause the price of our stock to change.  Continued volatility in the financial markets could also cause further declines in our stock price, which could trigger an impairment of the goodwill of our individual reporting units that could be material to our consolidated financial statements.  A significant drop in the price of our stock could also expose us to the risk of securities class action lawsuits, which could result in substantial costs and divert managements’ attention and resources, which could adversely affect our business.

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ITEM 1B.  UNRESOLVED STAFF COMMENTS

None.

ITEM 2.  PROPERTIES

As of December 28, 2012, we owned 43 properties and had approximately 850 facility leases in locations throughout the world.  The lease terms range from a minimum of month-to-month to a maximum of 27 years from inception with indefinite options for renewal, expansions, contraction and termination, sublease rights and allowances for improvements.  Our significant lease agreements expire at various dates through the year 2026.  We believe that our current facilities are sufficient for the operation of our business and that suitable additional space in various local markets is available to accommodate any reasonable foreseeable needs that may arise.  The following table summarizes our ten most significant leased properties by location based on annual rental expenses:

Property Location	Reporting Segment
Princeton, NJ	Energy & Construction
Tampa, FL	Infrastructure & Environment
Chantilly, VA	Federal Services
Denver, CO	Infrastructure & Environment
Denver, CO	Energy & Construction
Oak Ridge, TN	Energy & Construction
Germantown, MD	Infrastructure & Environment / Federal Services
San Francisco, CA	Corporate / Infrastructure & Environment
Boise, ID	Energy & Construction
Calgary, AB	Oil & Gas

ITEM 3.  LEGAL PROCEEDINGS

Various legal proceedings are pending against our subsidiaries and us.  The resolution of outstanding claims and litigation is subject to inherent uncertainty, and it is reasonably possible that resolution of any of the outstanding claims or litigation matters could have a material adverse effect on us.  See Note 17, “Commitments and Contingencies,” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report for a discussion of our legal proceedings, which is incorporated herein by reference.

ITEM 4.  MINE SAFETY DISCLOSURE

Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) requires domestic mine operators to disclose violations and orders issued under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) by the federal Mine Safety and Health Administration.  We do not act as the owner of any mines, but we may act as a mining operator as defined under the Mine Act where we may be a lessee of a mine, a person who operates, controls or supervises such mine, or an independent contractor performing services or construction of such mine.

Information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K is included in Exhibit 95.

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PART II

ITEM 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Market information

Our common stock is listed on the New York Stock Exchange under the symbol “URS.”  As of February 18, 2013, we had 2,625 stockholders of record.  The following table sets forth the high and low sale prices of our common stock, as well as dividend information, for the periods indicated.

	Sales Price per Share
	Low		High		Dividends Declared per Share
2012
First Quarter	$	35.40	$	47.16	$	0.20
Second Quarter	$	32.13	$	43.64	$	0.20
Third Quarter	$	32.76	$	38.88	$	0.20
Fourth Quarter	$	33.20	$	40.27	$	0.20
2011
First Quarter	$	39.61	$	48.32	$	—
Second Quarter	$	41.48	$	47.12	$	—
Third Quarter	$	28.46	$	46.18	$	—
Fourth Quarter	$	27.93	$	37.60	$	—

On February 22, 2013, our Board of Directors approved the continuation of this program and authorized a $0.21 per share quarterly dividend.  Future dividends are subject to approval by our Board of Directors or the Audit Committee of the Board of Directors.

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Stock Purchases

The following table sets forth all purchases made by us or any “affiliated purchaser” as defined in Rule 10b-18(a)(3) of the Securities Exchange Act of 1934, as amended, of our common shares during the three monthly periods that comprise our fourth quarter of 2012:

	(a) Total Number of Shares Purchased (1,2)			(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)		(d) Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (2)
	(In millions, except average price paid per share)
September 29, 2012 – October 26, 2012		—		$	—		—		4.0
October 27, 2012 – November 23, 2012		—	†		34.88		—		4.0
November 24, 2012 – December 28, 2012		—	†		39.50		—		4.0
Total		—					—

(1)   Reflects purchases of shares previously issued pursuant to awards issued under our equity incentive plans, which allow our employees to surrender shares of our common stock as payment toward the exercise cost and tax withholding obligations associated with the exercise of stock options or the vesting of restricted or deferred stock.

(2)   On February 25, 2011, our Board of Directors authorized the repurchase of 8.0 million shares, of which we repurchased 1.0 million shares of our common stock during 2012.  For each of fiscal years 2012, 2013 and 2014, the number of shares authorized for repurchase under the program is 3.0 million shares, plus the number of shares equal to the difference between the number of shares authorized to be purchased in the prior year and the actual number of shares repurchased during the prior year, not to exceed 6.0 million shares in aggregate.  The repurchase program will expire at the end of our 2014 fiscal year.  The Board of Directors may modify, suspend, extend or terminate the program at any time.

† Represents less than half a million shares.

Our 2011 Credit Facility permits unlimited dividend payments and stock repurchases if no default has occurred and our Consolidated Leverage Ratio is equal to or less than 1.50:1.00.  However, if no default has occurred and the Consolidated Leverage Ratio is below the threshold indication above, then our dividend payments and stock repurchases are limited to $150 million per fiscal year and the sum of 50% of our cumulative net income and net cash proceeds from the issuance of equity securities to third parties after October 19, 2011.

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ITEM 6.  SELECTED FINANCIAL DATA

The following selected financial data was derived from our consolidated financial statements.  You should read the selected financial data presented below in conjunction with the information contained in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our consolidated financial statements and the notes thereto contained in Item 8, “Consolidated Financial Statements and Supplementary Data,” of this report.

	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	December 28,			December 30,			December 31,			January 1,			January 2,
(In millions, except per share data)		2012 (1,2)			2011 (1,2)			2010 (1,2)			2010 (1)			2009 (1)
Income Statement Data:
Revenues	$	10,972.5		$	9,545.0		$	9,177.1		$	9,249.1		$	10,086.3
Cost of revenues		(10,294.5	)		(8,988.8	)		(8,609.5	)		(8,772.4	)		(9,608.8	)
General and administrative expenses		(83.6	)		(79.5	)		(71.0	)		(75.8	)		(78.7	)
Goodwill impairment (3)		—			(825.8	)		—			—			—
Acquisition-related expenses (2)		(16.1	)		(1.0	)		(11.9	)		—			—
Restructuring costs (4)		—			(5.5	)		(10.6	)		—			—
Impairment of an intangible asset (5)		—			—			—			(32.8	)		—
Equity in income of unconsolidated joint ventures (6)		107.6			132.2			70.3			100.9			106.3
Operating income (loss)		685.9			(223.4	)		544.4			469.0			505.1
Other income (expenses) (7)		0.5			—			—			47.9			—
Net income (loss) attributable to URS		310.6			(465.8	)		287.9			269.1			219.8
Earnings (loss) per share:
Basic	$	4.18		$	(6.03	)	$	3.56		$	3.31		$	2.61
Diluted	$	4.17		$	(6.03	)	$	3.54		$	3.29		$	2.59
Cash dividends declared per share (8)	$	0.80		$	—		$	—		$	—		$	—
Balance Sheet Data (As of the end of the period):
Total assets	$	8,786.5		$	6,862.6		$	7,351.4		$	6,904.4		$	7,001.2
Total long-term debt (9)	$	1,992.5		$	737.0		$	641.3		$	689.7		$	1,091.5
Total URS stockholders’ equity (8)	$	3,621.1		$	3,377.2		$	4,117.2		$	3,905.8		$	3,624.6
Total noncontrolling interests	$	141.9		$	107.2		$	83.8		$	44.7		$	31.3
Total stockholders’ equity	$	3,763.0		$	3,484.4		$	4,201.0		$	3,950.5		$	3,655.8

(1)   Our fiscal year is the 52/53-week period ending on the Friday closest to December 31.  Our fiscal year ended January 2, 2009 contained 53 weeks.

(2)   We completed the acquisitions of Flint, Apptis and Scott Wilson Group plc (“Scott Wilson”)  in May 2012, June 2011 and September 2010, respectively.  The operating results of Flint, Apptis and Scott Wilson since their respective acquisition dates are included in our consolidated financial statements under the Oil & Gas Division, Federal Services Division and the Infrastructure & Environment Division, respectively.

(3)   During the year ended December 30, 2011, we recorded a goodwill impairment charge of $825.8 million.  On a net, after-tax basis, this resulted in decreases to net income and diluted earnings per share (“EPS”) of $732.2 million and $9.46, respectively, for the year ended December 30, 2011.  For further discussion, see Note 9, “Goodwill and Intangible Assets” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this annual report.

(4)   For the years ended December 30, 2011 and December 31, 2010, we recorded restructuring costs in our international businesses.  For further discussion, see Note 17, “Commitments and Contingencies,” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this annual report.

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(5)   During fiscal year 2009, we recorded a $32.8 million charge for the impairment of our intangible asset related to the “Washington” trade name.  On a net, after-tax basis, this transaction resulted in decreases to net income and EPS of $19.6 million and $0.24, respectively, for the year ended January 1, 2010.

(6)   In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California.  The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders.  As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million during fiscal year 2010.  During the second quarter of 2011, we recognized a pre-tax favorable claim settlement of $9.5 million on this project.

(7)   During fiscal year 2009, we recorded $47.9 million of other income (expenses), consisting of a $75.6 million gain associated with the sale of our equity investment in MIBRAG mbH (“MIBRAG”), net of $5.2 million of sale-related costs.  This gain was partially offset by a $27.7 million loss on the settlement of a foreign currency forward contract, which primarily hedged our net investment in MIBRAG.  On a net, after-tax basis, these two transactions resulted in increases to net income and diluted EPS of $30.6 million and $0.37, respectively, for the year ended January 1, 2010.

(8)   On February 24, 2012, our Board of Directors approved the initiation of a regular quarterly cash dividend program and authorized a $0.20 per share quarterly dividend.

(9)   During fiscal year 2012, we issued $1.0 billion of Senior Notes in connection with the acquisition of Flint.  As part of the acquisition, we also guaranteed the Canadian Notes with outstanding face values of $175.8 million.  During fiscal year 2011, we entered into our 2011 Credit Facility, which replaced our 2007 Credit Facility.  This new senior credit facility provides a term loan facility of $700.0 million and revolving credit facilities of $1.0 billion.  For further discussion, see Note 10, “Indebtedness” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this annual report.

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ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion contains, in addition to historical information, forward-looking statements that involve risks and uncertainties.  Our actual results and the timing of events could differ materially from those described herein.  See “URS Corporation and Subsidiaries” regarding forward-looking statements on page 1.  You should read this discussion in conjunction with Item 1A, “Risk Factors,” beginning on page H20; the consolidated financial statements and notes thereto contained in Item 8, “Consolidated Financial Statements and Supplementary Data,” of this report.

BUSINESS SUMMARY

We are a leading international provider of engineering, construction and technical services.  We offer a broad range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients around the world.  We also are a U.S. federal government contractor in the areas of systems engineering and technical assistance, operations and maintenance, and IT services.  With approximately 54,000 employees, as of January 25, 2013, in a global network of offices and contract-specific job sites in nearly 50 countries, we provide services for federal, infrastructure, oil and gas, power and industrial programs and projects.  On May 14, 2012, we completed the acquisition of Flint, a provider of construction and maintenance services to clients in the oil and gas industry, expanding our presence in the oil and gas market sector in North America.  At the close of the acquisition, the operations of Flint became our new Oil & Gas Division.

Our strategy is to maintain a balanced portfolio of diversified businesses that serve a variety of markets worldwide.  We believe that this strategy helps to mitigate our exposure to industrial, technological, environmental, financial, economic and political risks that may affect a particular market or geographic region.  Our growth strategy involves both organic growth as well as expansion through acquisitions of other companies that complement or enhance our technical capabilities or enable us to address new markets or geographic regions.

We generate revenues by providing fee-based professional and technical services and by executing construction contracts.  As a result, our professional and technical services are primarily labor intensive and our construction projects are labor and capital intensive.  To derive income from our revenues, we must effectively manage our costs.

Our revenues are dependent upon our ability to attract and retain qualified and productive employees, identify business opportunities, allocate our labor resources to profitable markets, secure new contracts, execute existing contracts, and maintain existing client relationships.  Moreover, as a professional services company, the quality of the work generated by our employees is integral to our revenue generation.

Our cost of revenues is comprised of the compensation we pay to our employees, including fringe benefits; the cost of subcontractors, construction materials and other project-related expenses; and segment administrative, marketing, sales, bid and proposal, rental and other overhead costs.

We report our financial results on a consolidated basis and for our four reporting segments:  the Infrastructure & Environment Division, the Federal Services Division, the Energy & Construction Division and the Oil & Gas Division.

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OVERVIEW AND BUSINESS TRENDS

Fiscal Year 2012 Results

Consolidated revenuesfor the year ended December 28, 2012 were $11.0 billion, an increase of $1.4 billion, or 15.0%, compared to revenues for fiscal year 2011.  Our results for the 2012 fiscal year include revenues resulting from the acquisition of Flint in May 2012.  Flint generated $1.5 billion in revenues from the completion of the acquisition on May 14, 2012, through the end of our fiscal year on December 28, 2012.  During the 2012 fiscal year, revenues increased significantly from our work in the oil and gas market sector, as a result of the Flint acquisition, and from our work in the power market sector.  By contrast, we experienced a decline in revenues from our work in the industrial, federal and infrastructure market sectors.

Net income attributable to URS for the year ended December 28, 2012 was $310.6 million compared with a net loss of $465.8 million for the year ended December 30, 2011.  Included in the fiscal year 2011 net loss attributable to URS was an after-tax goodwill impairment charge of $732.2 million.

Cash Flows and Debt

During the year ended December 28, 2012, we generated $430.2 million in net cash from operations.  (See “Consolidated Statements of Cash Flows” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report.)  Cash flows from operations decreased by $75.7 million for fiscal year 2012 compared with fiscal year 2011.  This decrease was primarily due to the timing of:  collections from clients on accounts receivable, advance project payments from clients, project performance payments, vendor and subcontractor payments, employer contribution payments to our retirement plans, and dividend distributions from our unconsolidated joint ventures.  In addition, our interest payments were higher due to increased debt.

On March 15, 2012, in a private placement, we issued $400.0 million in 3.85% Senior Notes due on April 1, 2017 and $600.0 million in 5.00% Senior Notes due on April 1, 2022 (collectively, the “Senior Notes”).  We used the net proceeds from the notes together with borrowings from our senior credit facility (“2011 Credit Facility”) to finance our acquisition of Flint.

During March and April 2012, we entered into various foreign currency forward contracts with an aggregate notional amount of C$1.25 billion (equivalent to US$1.25 billion), which settled during the second quarter of 2012.

In addition, we had cash outflows of $44.7 million of cash dividends and $40.0 million related to repurchases of our common stock for the year ended December 28, 2012.

Acquisitions

On May 14, 2012, we acquired the outstanding common shares of Flint for C$25.00 per share in cash, or C$1.24 billion (US$1.24 billion based on the exchange rate on the date of acquisition) and paid $110.3 million of Flint’s debt prior to the closing of the transaction in exchange for a promissory note from Flint.  The operating results of Flint from the acquisition date through December 28, 2012 are included in our consolidated financial statements under the Oil & Gas Division.

On June 1, 2011, we completed the acquisition of Apptis for a total purchase consideration of $283.0 million.  Since the acquisition date, the operating results of Apptis have been included in our consolidated financial statements under the Federal Services Division.

On September 10, 2010, we completed the acquisition of Scott Wilson for a total purchase consideration of $343.0 million.  Since the acquisition date, the operating results of Scott Wilson have been included in our consolidated financial statements under the Infrastructure & Environment Division.

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Dividend Program

On February 24, 2012, our Board of Directors authorized the implementation of a dividend program and authorized a $0.20 per share quarterly dividend.  On February 22, 2013, our Board of Directors approved the continuation of this program and authorized a $0.21 per share quarterly dividend.  Future dividends are subject to approval by our Board of Directors or the Audit Committee of the Board of Directors.

Book of Business

As of December 28, 2012 and December 30, 2011, our total book of business was $24.9 billion and $27.0 billion, respectively.  Our backlog decreased primarily due to reductions resulting from the recognition of revenues and equity in earnings of unconsolidated joint ventures, and from the removal of $560 million from federal backlog resulting from a decision by the DOE to remove funding of pension obligations from the scope of one of our contracts, which otherwise would have resulted in recognition of revenues as reimbursement for offsetting pension expenses on that contract.  Additional decreases in backlog and IDCs were caused primarily by lower than expected activity on an IDC contract with the DOD, and reductions in project scope and project cancellations by a power client.  These decreases were partially offset by additions of $1.4 billion to our book of business resulting from our acquisition of Flint.

Business Trends

Given the current economic uncertainty, it is difficult to predict the impact of the continuing global economic weakness on our business or to forecast business trends accurately.  Federal deficits, weak state budgets, the national debt, the potential budgetary sequestration, economic disruption in Europe, a relatively anemic recovery in the U.S., and efforts made to address any of these issues, could negatively affect our business.  In particular, federal expenditures on defense, as well as expenditures, both private and public, on other programs that we support or in markets that we participate in, could be adversely affected.  For example, the Budget Control Act of 2011 could impose an estimated $1.2 trillion in automatic federal budget cuts, or sequestrations, beginning in fiscal year 2013.  These budget cuts are in addition to the $917 billion in budget cuts required over the next 10 years, and would severely impact our defense and other federal services, unless Congress acts to resolve the budget issues or postpone the expected cuts.  Any significant reduction in federal government spending could reduce the demand for our overall services, and result in the cancellation or delay of existing projects as well as potential projects in our book of business.  It is also difficult to determine the extent to which concerns over the public debt of, and recessionary conditions in, the U.K. and various European countries could affect demand for, and spending on, the services we provide to our clients.  Many of these uncertainties are difficult to predict and are beyond our control.

We believe that our expectations regarding business trends are reasonable and are based on reasonable assumptions.  However, such forward-looking statements, by their nature, involve risks and uncertainties and, in the current economic climate, may be subject to an unusual degree of uncertainty.  You should read this discussion of business trends in conjunction with Part II, Item 1A, “Risk Factors,” of this report, which begins on page 20.

Federal Market Sector

Due to federal budget uncertainty, we expect to continue to experience delays and cancellations in procurement decisions and reductions in spending on some existing contracts.  The Budget Control Act of 2011 could impose significant and automatic federal budget cuts, or sequestrations, beginning in fiscal year 2013, if Congress fails to pass a budget reduction bill.  A large portion of these budget cuts would affect defense spending.  Although we expect that we will continue to be adversely affected by these budget challenges, some of the specialized technical services we provide and programs we support are vital to national security or mandated by law, and may have more predictable funding.  As a result, we expect that many of these services and programs, including the management of chemical demilitarization sites; the provision of nuclear management services; and the support of unmanned aerial vehicles, electronic warfare, threat reduction, and cyber-security programs would be more likely to continue receiving stable funding, if automatic federal budget cuts are imposed.

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Infrastructure Market Sector

We anticipate that the passage in 2012 of the two-year, $105 billion federal transportation funding bill, Moving Ahead for Progress in the 21st Century Act (“MAP-21”), will provide states and municipalities with stable funding for highway and transit projects.  In addition, the $50.5 billion Hurricane Sandy federal aid package includes $13 billion to repair roads and transit systems damaged by the storm, as well as $1.7 billion to the State of New York and $1.8 billion to New York City in block grants to address other public infrastructure needs.

Oil & Gas Market Sector

During the second quarter of the 2012 fiscal year, we acquired Flint, a provider of construction and maintenance services to clients in the North American oil and gas industry.  The acquisition significantly expanded our presence in the North American oil and gas market sector, which we anticipate will create new opportunities for our business in 2013.  As a result of the acquisition, we expect that any increase in capital spending to develop North American oil and gas resources could lead to increased demand for the engineering, construction and operations and maintenance services that we provide to clients in the oil and gas market sector.

Power Market Sector

For the 2013 fiscal year, we expect steady demand for our air quality control services, which involve the retrofit of coal-fired power plants with clean air technology to reduce sulfur dioxide, mercury and other emissions.  We are currently working on 18 retrofit projects to help utilities comply with state consent decrees and federal regulatory mandates.  Following events at the Fukushima nuclear power plant in Japan, the Nuclear Regulatory Commission issued new safety requirements to strengthen containment structures and to improve on-site flood control and seismic safety plans.  We also expect to benefit from new investments being made in transmission and distribution systems to improve the efficiency and reliability of these systems and accommodate the transmission of electricity from alternative and renewable energy sources.

Industrial Market Sector

For the 2013 fiscal year, we expect our industrial clients to continue to experience challenges as a result of economic conditions.  However, if our clients experience increased demand for durable goods, we may see increased demand for the engineering, construction and facilities management services we provide.  We also anticipate growth in our mining business in the U.S. and Australia, as a result of new contract awards in 2012.

Seasonality

We experience seasonal trends in our business in connection with federal holidays, such as Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas and New Year’s Day.  Our revenues typically are lower during these times of the year because many of our clients’ employees, as well as our own employees, do not work during these holidays, resulting in fewer billable hours charged to projects and thus, lower revenues recognized.  In addition to holidays, our business also is affected by seasonal bad weather conditions, such as hurricanes, floods, snowstorms or other inclement weather, which may cause some of our offices and projects to close or reduce activities temporarily.  For example, in the first quarter of the year, winter weather sometimes results in intermittent office closures and work interruptions.  In our Oil & Gas Division, winter weather enables increased access to remote work areas in Northern Canada, while spring road bans limit access to work areas in Canada and the Northern U.S.

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Other Business Trends

The diversification of our business and changes in the mix and timing of our fixed-cost, target-price and other contracts can cause earnings and profit margins to vary between periods.  For example, we have, for some time, experienced an increase in the number of fixed-price contracts we are awarded, particularly among clients in the federal sector.  The increase in fixed-price contracting creates additional risks of incurring losses and opportunities for achieving higher margins on these contracts.  There is also an increase in the award of federal contracts based on a low-price, technically acceptable criteria emphasizing price over qualitative factors, such as past performance.  As a result, pricing pressure may reduce our profit margins on future federal contracts.  Also, our government clients are increasingly using IDCs that require us to engage in a competitive procurement process before any task orders are issued as compared to traditional award contracts.  Additionally, the traditional award relationship between backlog and revenues, resulting in smaller, shorter term increments moving from IDCs and option years into backlog and then potentially realized as revenues.  Ultimately, however, revenues from IDC task orders and option years will typically lower our reported backlog and increase our reported IDC and option years in our book of business.  In addition, earnings recognition on many contracts is measured based on progress achieved as a percentage of the total project effort or upon the completion of milestones or performance criteria rather than evenly or linearly over the period of performance.

The achievement of early completion milestones on several chemical weapons stockpile processing projects indicates that those projects are approaching the end of their contract life cycle.  We expect to continue to generate revenues and operating income at these sites and other sites over the next several years, but in declining amounts as the projects approach final completion.

We cannot determine if proposed climate change and greenhouse gas regulations would have a material impact on our business or our clients’ businesses at this time; however, any new regulations could affect demand for the services we provide to our clients.  For example, depending on legislation enacted, we could see reduced client demand for our services related to fossil fuel and industrial projects, and increased demand for services related to environmental, infrastructure and nuclear and alternative energy.

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REVENUES BY MARKET SECTOR

The Year Ended December 28, 2012 Compared with the Year Ended December 30, 2011

	Year Ended
											Percentage
	December 28,			December 30,			Increase				Increase
(In millions, except percentages)	2012  (1)			2011  (2)			(Decrease)				(Decrease)
Revenues by Market Sector:
Federal		$	4,435.0		$	4,639.7		$	(204.7	)		(4.4	%)
Infrastructure			1,791.4			1,861.3			(69.9	)		(3.8	%)
Oil & Gas (3)			2,310.6			692.1			1,618.5			233.9	%
Power			1,304.4			1,126.6			177.8			15.8	%
Industrial (3)			1,131.1			1,225.3			(94.2	)		(7.7	%)
Total revenues, net of eliminations		$	10,972.5		$	9,545.0		$	1,427.5			15.0	%

(1)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

(3)   Historically, we have included revenues from the oil & gas market sector as part of our industrial & commercial market sector.  Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately.  In addition, we changed the name of our “industrial and commercial” market sector to the “industrial” market sector.  For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.

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Consolidated Revenues by Market Sector

Our consolidated revenues for the year ended December 28, 2012 were $11.0 billion, an increase of $1.4 billion, or 15.0%, compared with the year ended December 30, 2011.

See the discussion of revenues by market sector below for more detail.

Federal

	Year Ended
											Percentage
	December 28,			December 30,			Increase				Increase
(In millions, except percentages)	2012			2011			(Decrease)				(Decrease)
Federal Market Sector:
Infrastructure & Environment		$	670.1		$	636.5		$	33.6			5.3	%
Federal Services			2,720.8			2,694.3			26.5			1.0	%
Energy & Construction			1,044.1			1,308.9			(264.8	)		(20.2	%)
Federal total		$	4,435.0		$	4,639.7		$	(204.7	)		(4.4	%)

Consolidated revenues from our federal market sector for the year ended December 28, 2012 declined compared with the year ended December 30, 2011.  During the 2012 fiscal year, revenues declined from the nuclear management services we provide to the DOE, due largely to the completion of ARRA stimulus-funded projects, the completion of a cleanup and closure project at a former nuclear fuel reprocessing/treatment facility, as well as lower activity on on-going DOE contracts.  In addition, we experienced decreased demand for the systems engineering and technical assistance services we provide to the DOD for the development, testing and evaluation of new weapons systems and the modernization of aging weapons systems.  The decrease in revenues from these activities was largely the result of delays in the award of new contracts and task orders under existing contracts.  Revenues also declined from our work managing the destruction of chemical weapons stockpiles at chemical agent disposal facilities throughout the U.S.  This decline reflects the transition at several facilities from the operations phase of the project to the closure phase, which is characterized by lower levels of activity.

By contrast, revenues increased from the federal IT market as a result of the acquisition of Apptis in June 2011.  In addition, revenues grew from the services we provide to the DOD to maintain, repair and overhaul aircraft, ground vehicles and other equipment returning from military operations, as well as from increased activity on a contract to provide operations and installations management support at a space flight center.  We also experienced increased demand for the design and construction services we provide to the DOD for the development of military facilities and related infrastructure.

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Infrastructure

	Year Ended
											Percentage
	December 28,			December 30,			Increase				Increase
(In millions, except percentages)	2012			2011			(Decrease)				(Decrease)
Infrastructure Market Sector:
Infrastructure & Environment		$	1,550.1		$	1,544.0		$	6.1			0.4	%
Energy & Construction			241.3			317.3			(76.0	)		(24.0	%)
Infrastructure total		$	1,791.4		$	1,861.3		$	(69.9	)		(3.8	%)

Consolidated revenues from our infrastructure market sector for the year ended December 28, 2012 decreased compared with the year ended December 30, 2011.  The decline in infrastructure revenues was primarily due to the completion early in the 2012 fiscal year of a levee construction project in New Orleans, which experienced higher levels of activity and generated significant revenues during the 2011 fiscal year.  The revenue decline also reflects a close-out and settlement agreement reached on a light rail project and a toll road project. In addition, demand decreased for the services we provide to modernize and expand airports and educational facilities.

By contrast, revenues increased from the planning, design, engineering, program and construction management services we provide to develop surface and rail transportation infrastructure, and water storage, conveyance and treatment systems.  We also benefited from higher demand for our work providing program management services to international agencies in support of economic development efforts.

Oil & Gas

	Year Ended
										Percentage
	December 28,			December 30,			Increase			Increase
(In millions, except percentages)	2012			2011			(Decrease)			(Decrease)
Oil & Gas Market Sector: (1)
Infrastructure & Environment		$	552.5		$	529.7		$	22.8		4.3	%
Energy & Construction			288.9			162.4			126.5		77.9	%
Oil & Gas (2)			1,469.2			—			1,469.2		N/M
Oil & Gas total		$	2,310.6		$	692.1		$	1,618.5		233.9	%

N/M = Not meaningful

(1)   Historically, we have included revenues from the oil & gas market sector as part of our presentation of revenues from the industrial & commercial market sector.  Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately.  In addition, we changed the name of our “industrial and commercial” market sector to the “industrial” market sector.  For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.

(2)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

Consolidated revenues from our oil & gas market sector for the year ended December 28, 2012 increased compared with the year ended December 30, 2011.  Our results reflect the acquisition of Flint on May 14, 2012.  At the completion of the acquisition, Flint became our new Oil & Gas Division.  For the fiscal year ended December 28, 2012, the Oil & Gas Division generated revenues of $1.5 billion from work providing construction and maintenance services to the North American oil and gas industry.  We also benefited from strong demand for the environmental and engineering services we provide to multinational oil and gas clients at facilities worldwide through long-term master service agreements (“MSAs”), as well as from increased activity on contracts to provide construction, facility management, and operations and maintenance services at refineries and other oil and gas facilities.

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Power

	Year Ended
										Percentage
	December 28,			December 30,			Increase			Increase
(In millions, except percentages)	2012			2011			(Decrease)			(Decrease)
Power Market Sector:
Infrastructure & Environment		$	209.8		$	201.1		$	8.7		4.3	%
Energy & Construction			1,094.6			925.5			169.1		18.3	%
Power total		$	1,304.4		$	1,126.6		$	177.8		15.8	%

Consolidated revenues from our power market sector for the year ended December 28, 2012 increased compared with the year ended December 30, 2011.  During the 2012 fiscal year, revenues increased from services we provide to retrofit and upgrade existing nuclear power plants to increase the generating capacity and extend the service life of these facilities.  We also continued to experience a steady demand for our work in retrofitting coal-fired power plants with air quality control systems that reduce emissions and help utilities comply with regulatory mandates, as well as from the compliance, permitting and remediation services we provide to mitigate the environmental impact of their operations.  By contrast, revenues declined from the engineering, procurement and construction services we provide for the development of new fossil fuel and nuclear power-generating facilities.

Industrial

	Year Ended
											Percentage
	December 28,			December 30,			Increase				Increase
(In millions, except percentages)	2012			2011			(Decrease)				(Decrease)
Industrial Market Sector: (1)
Infrastructure & Environment		$	700.5		$	763.8		$	(63.3	)		(8.3	%)
Energy & Construction			430.6			461.5			(30.9	)		(6.7	%)
Industrial total		$	1,131.1		$	1,225.3		$	(94.2	)		(7.7	%)

(1)   Historically, we have included revenues from the oil & gas market sector as part of our presentation of revenues from the industrial & commercial market sector.  Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately.  In addition, we changed the name of our “industrial and commercial” market sector to the “industrial” market sector.  For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.

Consolidated revenues from our industrial market sector for the year ended December 28, 2012 declined compared with the year ended December 30, 2011.  The decline in revenues was largely driven by decreased demand for the environmental, engineering and construction services we provide to mining clients.  During the 2011 fiscal year, we experienced high levels of activity and generated significant revenues from an engineering and construction mining project in Australia; the project has not been replaced by a comparable assignment.  The decrease was partially offset by a moderate increase in revenues from the facilities management services we provide to manufacturing clients, resulting from increased activity on ongoing contracts and increased activities with other mining clients.

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CONSOLIDATED RESULTS BY DIVISION

The Year Ended December 28, 2012 Compared with the Year Ended December 30, 2011

	Year Ended
										Percentage
	December 28,			December 30,			Increase			Increase
(In millions, except percentages and per share amounts)	2012 (1)			2011 (2)			(Decrease)			(Decrease)
Revenues	$	10,972.5		$	9,545.0		$	1,427.5			15.0	%
Cost of revenues		(10,294.5	)		(8,988.8	)		1,305.7			14.5	%
General and administrative expenses		(83.6	)		(79.5	)		4.1			5.2	%
Acquisition-related expenses		(16.1	)		(1.0	)		15.1			N/M
Restructuring costs		—			(5.5	)		(5.5	)		N/M
Goodwill impairment		—			(825.8	)		(825.8	)		N/M
Equity in income of unconsolidated joint ventures		107.6			132.2			(24.6	)		(18.6	%)
Operating income (loss)		685.9			(223.4	)		909.3			407.0	%
Interest expense		(70.7	)		(22.1	)		48.6			219.9	%
Other income (expenses)		0.5			—			0.5			N/M
Income (loss) before income taxes		615.7			(245.5	)		861.2			350.8	%
Income tax expense		(189.9	)		(91.8	)		98.1			106.9	%
Net income (loss) including noncontrolling interests		425.8			(337.3	)		763.1			226.2	%
Noncontrolling interests in income of consolidated subsidiaries		(115.2	)		(128.5	)		(13.3	)		(10.4	%)
Net income (loss) attributable to URS	$	310.6		$	(465.8	)	$	776.4			166.7	%
Diluted earnings (loss) per share	$	4.17		$	(6.03	)	$	10.20			169.2	%

N/M = Not meaningful

(1)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

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Revenues

(In millions, except percentages)	Infrastructure & Environment		Federal Services (1)		Energy & Construction		Oil & Gas (2)		Eliminations		Total
Year ended
December 28, 2012	$	3,792.1	$	2,721.6	$	3,138.1	$	1,475.1	$	(154.4)	$	10,972.5
December 30, 2011		3,760.9		2,695.4		3,251.1		—		(162.4)		9,545.0
Increase (decrease)		31.2		26.2		(113.0)		1,475.1		(8.0)		1,427.5
Percentage increase (decrease)		0.8%		1.0%		(3.5%)		N/M		N/M		15.0%

N/M = Not meaningful

(1)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

(2)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

The revenues reported are presented prior to the elimination of inter-segment transactions.  Our analysis of the changes in revenues by reporting segment is discussed below.

The Infrastructure & Environment Division’s Revenues

The Infrastructure & Environment Division’s revenues were essentially flat for the year ended December 28, 2012 compared to the year ended December 30, 2011.  During the 2012 fiscal year, revenues increased from the services we provide to expand and modernize surface and rail transportation infrastructure, as well as from our work providing program management services to international aid agencies in support of economic development efforts.  We also benefited from strong demand for our work providing engineering and construction services to the DOD for the development of military facilities and related infrastructure.  In addition, demand grew for the compliance, permitting and remediation services we perform in the power sector to assist utilities in meeting regulatory requirements and mitigating the environmental impact of their operations.

By contrast, we experienced a decline in revenues from the environmental and engineering services we provide to industrial and mining clients.  The results in our mining market reflect the completion of an engineering and construction assignment, which generated significant revenues in the comparable period last year and was not replaced by a similar project.  In the oil and gas sector, revenues declined from our work supporting a major pipeline project in Alaska, due to the postponement of the project, while we continued to benefit from strong demand for the environmental and engineering services we provide to multinational oil and gas clients at facilities worldwide through long-term MSAs.

The Federal Services Division’s Revenues

The Federal Services Division’s revenues were essentially flat for the year ended December 28, 2012 compared to the year ended December 30, 2011.  Revenues increased from the IT services we now provide to federal clients, as a result of our June 2011 acquisition of Apptis.  Revenues from the services we provide to the DOD to maintain, repair and overhaul aircraft, ground vehicles and other equipment were essentially flat.

Revenues from our work managing the destruction of chemical weapons stockpiles at chemical agent disposal facilities declined.  This decline reflects the transition at several facilities from the operations phase of the project to the closure phase, which is characterized by lower levels of activity.

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The Energy & Construction Division’s Revenues

The Energy & Construction Division’s revenues for the year ended December 28, 2012 decreased compared with the year ended December 30, 2011.  The decrease was primarily due to the completion of a large power project and a large levee construction project in the prior year.  In addition, revenues declined from our work providing nuclear management services to the DOE, as a result of completing ARRA stimulus-funded projects and lower activity on ongoing DOE projects compared to the same period last year.

These decreases were partially offset by the start-up of new projects, including a new air quality control project at a coal-fired power plant and projects to replace steam generators at nuclear power plants.  However, revenues during the engineering and early construction phases associated with the start-up of projects tend to be lower than revenues during the active construction phases.  During the year ended December 30, 2011, there were more projects in active construction compared to the year ended December 28, 2012.  As a result, revenues for the year ended December 28, 2012 were relatively lower than for the year ended December 30, 2011.

The Oil & Gas Division’s Revenues

The Oil & Gas Division’s revenues for the year ended December 28, 2012 were derived from the construction and construction management, and operations and maintenance services that we provide, including facility and pipeline construction, transportation, and asset management and maintenance services, for the North American oil and gas industry.  Since the acquisition on May 14, 2012, the revenues of Flint have been included in our consolidated results under our Oil & Gas Division.

Cost of Revenues

(In millions, except percentages)	Infrastructure & Environment		Federal Services (1)		Energy & Construction		Oil & Gas (2)		Eliminations		Total
Year ended
December 28, 2012	$	(3,575.2)	$	(2,478.7)	$	(2,976.9)	$	(1,418.1)	$	154.4	$	(10,294.5)
December 30, 2011		(3,537.2)		(2,503.9)		(3,110.1)		—		162.4		(8,988.8)
Increase (decrease)		38.0		(25.2)		(133.2)		1,418.1		(8.0)		1,305.7
Percentage increase (decrease)		1.1%		(1.0%)		(4.3%)		N/M		N/M		14.5%

N/M = Not meaningful

(1)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

(2)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

Our consolidated cost of revenues, which consists of labor, subcontractor costs, and other expenses related to projects, and services provided to our clients, for the year ended December 28, 2012 increased compared with the year ended December 30, 2011.  Because our revenues are primarily project-based, the factors that generally caused revenues to increase or decrease also drove a corresponding increase or decrease in our cost of revenues.

Consolidated cost of revenues as a percent of revenues decreased from 94.2% for the year ended December 30, 2011 to 93.8% for the year ended December 28, 2012.

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General and Administrative Expenses

Our consolidated general and administrative (“G&A”) expenses for the year ended December 28, 2012 increased by 5.2% compared with the year ended December 30, 2011.  The increase in G&A expenses was due primarily to increases in employee salaries and the related benefit expenses of $2.4 million, foreign currency loss of $1.5 million, legal expenses of $1.2 million, and corporate communication and information technology-related expenses of $0.8 million, partially offset by the release of $2.1 million of sales tax reserve.  Consolidated G&A expenses as a percent of revenues was 0.8% for both years ended December 28, 2012 and December 30, 2011.  

Acquisition-related Expenses

Our consolidated acquisition-related expenses generally include legal fees, consultation fees, travel expenses, and other miscellaneous direct and incremental administrative expenses.  For the year ended December 28, 2012, we recorded $16.1 million of acquisition-related expenses for our acquisition of Flint.

Restructuring Costs

Restructuring costs consisted primarily of costs for severance and associated benefits.  We did not incur restructuring costs for the year ended December 28, 2012.  For the year ended December 30, 2011, our restructuring costs were $5.5 million, the majority of which resulted from the integration of Scott Wilson into our existing U.K. and European business and necessary responses to reductions in market opportunities in Europe.

Goodwill Impairment

Our 2012 annual review, performed as of October 26, 2012, did not indicate any further adjustment to our goodwill.  For the year ended December 30, 2011, we recognized an impairment charge of $825.8 million affecting five of our six reporting units.  On a net, after-tax basis, this charge resulted in decreases to net income and diluted EPS of $732.2 million and $9.46, respectively, for the year ended December 30, 2011.

Equity in Income of Unconsolidated Joint Ventures

(In millions, except percentages)	Infrastructure & Environment			Federal Services (1)			Energy & Construction			Oil & Gas (2)		Total
Year ended
December 28, 2012	$	4.0		$	6.4		$	93.0		$	4.2	$	107.6
December 30, 2011		3.9			6.2			122.1			—		132.2
Increase (decrease)		0.1			0.2			(29.1	)		4.2		(24.6	)
Percentage increase (decrease)		2.6	%		3.2	%		(23.8	%)		N/M		(18.6	%)

N/M = Not meaningful

(1)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

(2)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

Our consolidated equity in income of unconsolidated joint ventures for the year ended December 28, 2012 decreased compared with the year ended December 30, 2011.  The decrease was primarily attributable to a $21.1 million decrease in earnings from nuclear management, operations and cleanup projects in the U.K., a $9.5 million favorable settlement on a highway construction project during the year ended December 30, 2011, and a $5.9 million decrease in earnings on a DOE cleanup project due to the timing of recognizing target-cost savings and other performance-based earnings.  These decreases were partially offset by an $8.2 million increase in earnings from a light rail project.

54

Operating Income (Loss)

(In millions, except percentages)	Infrastructure & Environment		Federal Services (1)		Energy & Construction		Oil & Gas (2)		Corporate		Total
Year ended
December 28, 2012	$	220.9	$	249.3	$	254.2	$	61.2	$	(99.7)	$	685.9
December 30, 2011		222.0		(151.5)		(214.4)		—	$	(79.5)		(223.4)
Increase (decrease)		(1.1)		400.8		468.6		61.2	$	20.2		909.3
Percentage increase (decrease)		(0.5%)		264.6%		218.6%		N/M		25.4%		407.0%

N/M = Not meaningful

(1)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

(2)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

As a percentage of revenues, operating income for the year ended December 28, 2012 was 6.3% compared to (2.3)% for the year ended December 30, 2011.  The increase in operating income in fiscal year 2012 relative to the corresponding period of 2011was primarily due to the goodwill impairment charge recorded during the year ended December 30, 2011.  In addition, operating income increased due to the inclusion of operating income resulting from the acquisition of Flint and an increase in net performance-based incentive fees from work, performed by our Federal Services Division, managing chemical demilitarization programs in the U.S.  These increases were partially offset by the decrease in operating income resulting from the wind down and completion of projects, and delayed awards of new task orders.  See the detailed discussion of operating income by segment below.

The Infrastructure & Environment Division’s Operating Income

Operating income as a percentage of revenues was 5.8% for the year ended December 28, 2012 compared to 5.9% for the year ended December 30, 2011.  The change in operating income was primarily attributable to our contract mix, which in 2012, utilized more subcontractors with higher associated costs.  The increase in subcontract costs was partially offset by higher revenues and decreases in employee benefits and other indirect costs.  Overhead costs as a percentage of revenues decreased to 31.1% for the year ended December 28, 2012 from 32.0% for the year ended December 30, 2011.

The Federal Services Division’s Operating Income (Loss)

Operating income (loss) as a percentage of revenues was 9.2% for the year ended December 28, 2012 compared to (5.6)% for the year ended December 30, 2011.  For the year ended December 30, 2011, the operating loss was the result of a $348.3 million goodwill impairment charge.  Operating income included a $75.7 million increase in net performance-based incentive fees from work managing chemical demilitarization programs recognized in the current year compared to the prior year.  This increase was partially offset by delayed awards of new task orders under existing contracts and lower margins on federal operations and support services contracts due to low-price, technically acceptable contracting strategies, which emphasize price over qualitative factors, such as past performance.

55

The Energy & Construction Division’s Operating Income (Loss)

Operating income (loss) as a percentage of revenues was 8.1% for the year ended December 28, 2012 compared to (6.6)% for the year ended December 30, 2011.  The operating loss was the result of a $477.5 million goodwill impairment charge recorded in the year ended December 30, 2011.  The decrease in operating income after considering the goodwill impairment charge was due to the $29.1 million decrease in equity in income of unconsolidated joint ventures described above, and a $31.5 million decline resulting from the substantial completion of a levee construction project in New Orleans in the prior year.  These decreases were partially offset by an increase of $22.8 million, consisting of a $3.4 million current year insurance recovery compared to a prior year loss of $19.4 million on a common sulfur project and an increase of $20.6 million on a new air quality control project.

The Oil & Gas Division’s Operating Income

The Oil & Gas Division’s operating income for the year ended December 28, 2012 was $61.2 million, which reflects activities from May 14, 2012, the effective date of the Flint acquisition and includes $38.6 million of amortization of intangible assets in connection with the Flint acquisition.

Interest Expense

Our consolidated interest expense for the year ended December 28, 2012 increased by $48.6 million or 219.9% compared with the year ended December 30, 2011.  This increase was primarily due to the interest expense incurred on the additional borrowings and the assumption of debt in connection with the Flint acquisition.

Other Income (Expenses)

Our consolidated other income (expenses) for the year ended December 28, 2012 represents a foreign currency gain of $0.8 million recognized on intercompany financing arrangements and a net loss of $0.3 million recognized on foreign currency forward contracts.

Income Tax Expense

The change in the effective income tax rate for the year ended December 28, 2012 compared with the comparable period in 2011 was primarily due to the non-deductibility of the goodwill impairment charge taken in 2011.

Noncontrolling Interests in Income of Consolidated Subsidiaries

Our noncontrolling interests in income of consolidated subsidiaries decreased by $13.3 million or 10.4% in the year ended December 28, 2012 compared with the year ended December 30, 2011.  The decrease in noncontrolling interests in income of consolidated subsidiaries, net of tax was primarily due to lower earnings from one of our U.K. joint ventures, the substantial completion of a levee construction project in New Orleans in the prior year, and lower earnings from certain DOE nuclear cleanup projects.  These decreases were partially offset by increases related to higher activity at air quality control services projects and steam generator replacement projects performed through consolidated joint ventures.

56

REVENUES BY MARKET SECTOR

The Year Ended December 30, 2011 Compared with the Year Ended December 31, 2010

	Year Ended
											Percentage
	December 30,			December 31,			Increase				Increase
(In millions, except percentages)	2011  (1)			2010  (2)			(Decrease)				(Decrease)
Revenues by Market Sector:
Federal		$	4,639.7		$	4,523.4		$	116.3			2.6	%
Infrastructure			1,861.3			1,902.4			(41.1	)		(2.2	%)
Oil & Gas (3)			692.1			685.1			7.0			1.0	%
Power			1,126.6			1,109.2			17.4			1.6	%
Industrial (3)			1,225.3			957.0			268.3			28.0	%
Total revenues, net of eliminations		$	9,545.0		$	9,177.1		$	367.9			4.0	%

(1)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

(2)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

(3)   Historically, we have included revenues from the oil & gas market sector as part of our presentation of revenues from the industrial & commercial market sector.  Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately.  In addition, we changed the name of our “industrial and commercial” market sector to the “industrial” market sector.  For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.

57

Consolidated Revenues by Market Sector

Our consolidated revenues for the year ended December 30, 2011 were $9.5 billion, an increase of $367.9 million, or 4.0%, compared with the year ended December 31, 2010.

See the discussion of revenues by market sector below for more detail.

Federal

	Year Ended
											Percentage
	December 30,			December 31,			Increase				Increase
(In millions, except percentages)	2011			2010			(Decrease)				(Decrease)
Federal Market Sector:
Infrastructure & Environment (1)		$	636.5		$	682.7		$	(46.2	)		(6.8	%)
Federal Services (2)			2,694.3			2,581.2			113.1			4.4	%
Energy & Construction			1,308.9			1,259.5			49.4			3.9	%
Federal total		$	4,639.7		$	4,523.4		$	116.3			2.6	%

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

Consolidated revenues from our federal market sector for the year ended December 30, 2011 were $4.6 billion, an increase of $116.3 million, or 2.6%, compared with the year ended December 31, 2010.  During the 2011 fiscal year, we benefited from the growth of our business in the federal IT market through the acquisition of Apptis, which generated $180.0 million in revenues, commencing with the acquisition date.  We also experienced increased demand for the environmental and nuclear management services we provide to the DOE and NDA involving the storage, treatment and disposal of radioactive waste.  In addition, revenues increased from our work managing chemical demilitarization programs at chemical agent disposal facilities in the U.S., as well as from the global threat reduction services we provide to secure and eliminate weapons of mass destruction at locations worldwide.  By contrast, revenues declined from the services we provide to modernize aging weapons systems, develop new systems, and maintain and repair military vehicles and aircraft.  Revenues also declined from the operations and installations management support we provide at military bases, test ranges and space flight centers.  The decline in revenues from these activities was primarily due to delays in the award of new contracts and task orders under existing contracts.  Revenues also decreased from projects involving the design and construction of military facilities and other government installations, compared to the 2010 fiscal year.

58

Infrastructure

	Year Ended
											Percentage
	December 30,			December 31,			Increase				Increase
(In millions, except percentages)	2011			2010			(Decrease)				(Decrease)
Infrastructure Market Sector:
Infrastructure & Environment (1)		$	1,544.0		$	1,402.8		$	141.2			10.1	%
Energy & Construction			317.3			499.6			(182.3	)		(36.5	%)
Infrastructure total		$	1,861.3		$	1,902.4		$	(41.1	)		(2.2	%)

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

Consolidated revenues from our infrastructure market sector for the year ended December 30, 2011 were $1.9 billion, a decrease of $41.1 million, or 2.2%, compared with the year ended December 31, 2010.  The decline in infrastructure revenues was primarily due to a decline in revenues resulting from the completion of a levee construction project in New Orleans, which experienced greater levels of activity and generated higher revenues during the 2010 fiscal year.  We also experienced decreased activity on an ongoing dam construction project in Illinois, primarily as a result of adverse weather conditions and flooding, which resulted in project delays.  The decrease in revenues was partially offset by the growth of our infrastructure business outside the U.S. resulting from the acquisition of Scott Wilson in September 2010.  Scott Wilson generated $282.4 million in infrastructure revenues during the year ended December 30, 2011.  During our 2010 fiscal year, we recognized revenues of $92.8 million from the operations of Scott Wilson from the date of the acquisition through December 31, 2010.  We also benefited from steady demand for the services we provide to expand and modernize surface and rail transportation systems, and ports and harbors.

Oil & Gas

	Year Ended
											Percentage
	December 30,			December 31,			Increase				Increase
(In millions, except percentages)	2011			2010			(Decrease)				(Decrease)
Oil & Gas Market Sector: (1)
Infrastructure & Environment (2)		$	529.7		$	418.8		$	110.9			26.5	%
Energy & Construction			162.4			266.3			(103.9	)		(39.0	%)
Oil & Gas total		$	692.1		$	685.1		$	7.0			1.0	%

(1)   Historically, we have included revenues from the oil & gas market sector as part of our presentation of revenues from the industrial & commercial market sector.  Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately.  In addition, we changed the name of our “industrial and commercial” market sector to the “industrial” market sector.  For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.

(2)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

Consolidated revenues from our oil & gas market sector for the year ended December 30, 2011 increased compared with the year ended December 31, 2010.  Our results reflect the sustained high level of oil prices, which resulted in increased capital spending by many of our clients in the oil and gas industry on the initial phases of projects that had previously been deferred, increasing demand for the front-end engineering and design services we provide.  We also benefited from strong demand for the environmental and engineering services we provide to oil and gas clients through long-term MSAs.  In addition, revenues increased due to high levels of activity on an assignment to construct a natural gas storage facility in Louisiana.

59

Power

	Year Ended
											Percentage
	December 30,			December 31,			Increase				Increase
(In millions, except percentages)	2011			2010			(Decrease)				(Decrease)
Power Market Sector:
Infrastructure & Environment (1)		$	201.1		$	156.5		$	44.6			28.5	%
Energy & Construction			925.5			952.7			(27.2	)		(2.9	%)
Power total		$	1,126.6		$	1,109.2		$	17.4			1.6	%

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

Consolidated revenues from our power market sector for the year ended December 30, 2011 were $1.1 billion, an increase of $17.4 million, or 1.6%, compared with the year ended December 31, 2010.  During fiscal year 2011, we benefited from demand for the engineering, compliance, permitting and remediation services we provide to utilities to assist them in meeting regulatory requirements and in mitigating the environmental impact of their operations.  Revenues also increased from projects involving the development of new nuclear power facilities.  By contrast, we experienced a decline in revenues from our work retrofitting coal-fired power plants with air quality control systems, due primarily to the completion of several major assignments.  These projects experienced higher levels of activity and generated significant revenues during our 2010 fiscal year.  Recently awarded emission control projects are in earlier design stages, which are typically characterized by lower levels of activity and generate lower revenues.  We also experienced lower revenues from projects involving the replacement of major components at existing nuclear power plants to extend their efficiency and generating capacity, due largely to the completion of several major assignments.

60

Industrial

	Year Ended
										Percentage
	December 30,			December 31,			Increase			Increase
(In millions, except percentages)	2011			2010			(Decrease)			(Decrease)
Industrial Market Sector: (1)
Infrastructure & Environment (2)		$	763.8		$	553.4		$	210.4		38.0	%
Energy & Construction			461.5			403.6			57.9		14.3	%
Industrial total		$	1,225.3		$	957.0		$	268.3		28.0	%

(1)   Historically, we have included revenues from the oil & gas market sector as part of our presentation of revenues from the industrial & commercial market sector.  Effective at the beginning of our 2012 fiscal year, we revised our presentation to show our revenues from the oil & gas market sector separately.  In addition, we changed the name of our “industrial and commercial” market sector to the “industrial” market sector.  For comparative purposes, we reclassified the prior period’s data to conform them to the current period’s presentation.

(2)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

Consolidated revenues from our industrial and commercial market sector for the year ended December 30, 2011 were $1.9 billion, an increase of $275.3 million, or 16.8%, compared with the year ended December 31, 2010.  During our 2011 fiscal year, revenues increased from the engineering and environmental services we provide under MSAs to multinational corporations to help them meet regulatory requirements and support their existing operations.  In the manufacturing industry, we benefited from strong demand for facilities management services as our clients continued to outsource these services to help save costs and maximize the efficiency of their operations.  Revenues also increased from engineering, environmental and construction assignments for mining clients.  By contrast, we continued to experience a decline in revenues from major capital expenditure projects, as well as from the completion of several large-scale contracts that have not been replaced by comparable projects.

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CONSOLIDATED RESULTS BY DIVISION

The Year Ended December 30, 2011 Compared with the Year Ended December 31, 2010

	Year Ended
										Percentage
	December 30,			December 31,			Increase			Increase
(In millions, except percentages and per share amounts)	2011  (1)			2010  (2)			(Decrease)			(Decrease)
Revenues	$	9,545.0		$	9,177.1		$	367.9			4.0	%
Cost of revenues		(8,988.8	)		(8,609.5	)		379.3			(4.4	%)
General and administrative expenses		(79.5	)		(71.0	)		8.5			(12.0	%)
Acquisition-related expenses		(1.0	)		(11.9	)		(10.9	)		91.6	%
Restructuring costs		(5.5	)		(10.6	)		(5.1	)		48.1	%
Goodwill impairment		(825.8	)		—			825.8			N/M
Equity in income of unconsolidated joint ventures		132.2			70.3			61.9			88.1	%
Operating income (loss)		(223.4	)		544.4			(767.8	)		(141.0	%)
Interest expense		(22.1	)		(30.6	)		(8.5	)		27.8	%
Income (loss) before income taxes		(245.5	)		513.8			(759.3	)		(147.8	%)
Income tax expense		(91.8	)		(127.6	)		(35.8	)		(28.1	%)
Net income (loss) including noncontrolling interests		(337.3	)		386.2			(723.5	)		(187.3	%)
Noncontrolling interests in income of consolidated subsidiaries		(128.5	)		(98.3	)		30.2			30.7	%
Net income attributable to URS	$	(465.8	)	$	287.9		$	(753.7	)		(261.8	%)
										$
Diluted earnings per share	$	(6.03	)	$	3.54		$	(9.57	)		(270.3	%)

(1)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

(2)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

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Revenues

(In millions, except percentages)	Infrastructure & Environment (1)			Federal Services (2)			Energy & Construction			Eliminations			Total
Year ended
December 30, 2011	$	3,760.9		$	2,695.4		$	3,251.1		$	(162.4	)	$	9,545.0
December 31, 2010		3,248.5			2,582.8			3,420.6			(74.8	)		9,177.1
Increase (decrease)		512.4			112.6			(169.5	)		87.6			367.9
Percentage increase (decrease)		15.8	%		4.4	%		(5.0	%)		117.1	%		4.0	%

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

The revenues reported are presented prior to the elimination of inter-segment transactions.  Our analysis of the changes in revenues by reporting segment is discussed below.

The Infrastructure & Environment Division’s Revenues

The Infrastructure & Environment Division’s revenues increased for the year ended December 30, 2011 compared to the year ended December 31, 2010.

For the 2011 fiscal year, Scott Wilson, which we acquired in September 2010, generated $451.1 million in revenues.  For the 2010 fiscal year, Scott Wilson generated $150.4 million in revenues, beginning on the date of the acquisition through December 31, 2010.  During the 2011 year, we benefited from the growth of our infrastructure business outside North America as a result of the acquisition of Scott Wilson.  Revenues increased from the services we provide to expand and modernize surface and rail transportation infrastructure, and ports and harbors.  In addition, we continued to experience steady demand for the disaster response services we provide to the Federal Emergency Management Agency, particularly following tornado damage in Alabama and flooding caused by Hurricane Irene.  We also benefited from strong demand for the engineering and environmental work we provide to multinational corporations under MSAs.  The sustained level of oil prices is causing many clients in the oil and gas industry to move forward with the initial phases of projects that had previously been deferred.  Revenues also increased from our work supporting mining clients.  As a result of higher commodity prices for metals and mineral resources, many of our mining clients are expanding their operations to meet growing demand.

By contrast, revenues declined from the engineering and construction services we provide to the DOD due to the completion of large task orders under existing contracts to design and build military facilities at installations in the U.S. and overseas.  During the 2010 fiscal year, these task orders experienced great levels of activities and generated higher revenues than similar design-build assignments that were in progress during the 2011 fiscal year.

63

The Federal Services Division’s Revenues

The Federal Services Division’s revenues increased for the year ended December 30, 2011 compared to the year ended December 31, 2010. The increase was primarily due to the growth of our federal IT services business as a result of the acquisition of Apptis, which generated $180.0 million in revenues during the year ended December 30, 2011.  Revenues also increased from our work managing chemical demilitarization programs in the U.S., as well as from the global threat reduction services we provide to secure and eliminate weapons of mass destruction at locations worldwide.  These increases were partially offset by a decrease in revenues from the services we provide to modernize aging weapons systems, develop new systems, and maintain and repair military vehicles and aircraft.  Revenues also declined from the operations and installations management support we provide at military bases, test ranges and space flight centers.  The decline in revenues from these activities was primarily due to delays in the award of new contracts and task orders under existing contracts, as well as decreased U.S. military activity in the Middle East.

The Energy & Construction Division’s Revenues

The Energy & Construction Division’s revenuesfor the year ended December 30, 2011 decreased compared with the year ended December 31, 2010.

The decline in revenues was primarily due to the completion of new fossil power generation projects, which accounted for a decrease of $124.7 million; a $53.2 million decrease at an ongoing air quality control services project; a decrease in major component replacement projects and other related services performed at nuclear power plants, which accounted for a decrease of $57.5 million; and a $74.5 million decrease due to the completion of projects involving the retrofit of coal-fired power plants with clean air technologies.  We also experienced a $119.8 million decrease on a levee construction project, which was nearing completion in the 2011 fiscal year, and a $32.6 million decrease as a result of lower activity at an ongoing dam construction project.  In addition, revenues declined $76.6 million due to the completion and wind down of oil and gas and mining projects.

These declines were partially offset by revenue increases from both new and ongoing projects for the DOE and for clients in the power and manufacturing industries.  We experienced higher revenues on a DOE contract to provide nuclear management services for the treatment and disposal of high-level liquid waste, which accounted for an increase of $97.7 million; a $40.2 million increase in revenues due to increased activity on a DOE deactivation, demolition and removal project; and a $30.0 million increase in revenues on a DOE nuclear cleanup project.  We also experienced a $217.8 million increase from new air quality control and transmission and distribution projects; a $61.6 million increase due to higher activity at a new nuclear power generation project; and a $23.5 million increase at an ongoing gas power generation plant.  Revenues also increased $35.3 million, as a result of higher activity on an engineering and construction project at a manufacturing facility.

64

Cost of Revenues

(In millions, except percentages)	Infrastructure & Environment (1)			Federal Services (2)			Energy & Construction			Eliminations			Total
Year ended
December 30, 2011	$	(3,537.2	)	$	(2,503.9	)	$	(3,110.1	)	$	162.4		$	(8,988.8	)
December 31, 2010		(3,006.0	)		(2,423.1	)		(3,255.2	)		74.8			(8,609.5	)
Increase (decrease)		531.2			80.8			(145.1	)		87.6			379.3
Percentage increase (decrease)		17.7	%		3.3	%		(4.5	%)		117.1	%		4.4	%

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

Our consolidated cost of revenues, which consists of labor, subcontractor costs, and other expenses related to projects and the services we provided to our clients, increased by 4.4% for the year ended December 30, 2011 compared with the year ended December 31, 2010.  Because our revenues are primarily project-based, the factors that generally caused revenues to increase resulted in a corresponding increase in our cost of revenues.  Consolidated cost of revenues as a percent of revenues increased from 93.8% for the year ended December 31, 2010 to 94.2% for the year ended December 30, 2011.  See “Operating Income” for further discussion.

General and Administrative Expenses

Our consolidated G&A expenses for the year ended December 30, 2011 increased by 12.0% compared with the year ended December 31, 2010.  Consolidated G&A expenses as a percent of revenues remained the same at 0.8% for the years ended December 30, 2011 and December 31, 2010.  The increase was primarily caused by a $6.6 million increase in expenses for employee benefits and the $2.8 million reversal, in the second quarter of fiscal year 2010, of a foreign payroll tax accrual related to a prior acquisition.  These increases were partially offset by $2.2 million of net foreign currency gains recorded in fiscal year 2011.

Acquisition-related Expenses

Our consolidated acquisition-related expenses for the years ended December 30, 2011 and December 31, 2010 were $1.0 million and $11.9 million, respectively.  We incurred these expenses in connection with our acquisitions of Apptis and Scott Wilson, which were completed on June 1, 2011 and September 10, 2010, respectively.  These expenses included legal fees, bank fees, consultation fees, travel expenses, and other miscellaneous direct and incremental administrative expenses associated with the acquisitions.

Restructuring Costs

Restructuring costs for the year ended December 30, 2011and December 31, 2010 were $5.5 million and $10.6 million, respectively, which consisted primarily of costs for severance and associated benefits.  The majority of the restructuring costs resulted from the integration of Scott Wilson into our existing U.K. and European business and necessary responses to reductions in market opportunities in Europe.

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Goodwill Impairment

During the year ended December 30, 2011, we completed our goodwill impairment review and recognized an impairment charge of $825.8 million affecting five of our six reporting units.  The decline in the fair value of our goodwill was due to the effects of the adverse equity market conditions that caused a decrease in market multiples and the decline in our stock price during the third quarter of 2011, which resulted in a decrease in our market capitalization.  On a net, after-tax basis, this resulted in decreases to net income and diluted EPS of $732.2 million and $9.46, respectively, for the year ended December 30, 2011.

Equity in Income of Unconsolidated Joint Ventures

(In millions, except percentages)	Infrastructure & Environment (1)			Federal Services (2)			Energy & Construction			Total
Year ended
December 30, 2011	$	3.9		$	6.2		$	122.1		$	132.2
December 31, 2010		2.9			5.9			61.5			70.3
Increase (decrease)		1.0			0.3			60.6			61.9
Percentage increase (decrease)		34.5	%		5.1	%		98.5	%		88.1	%

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

Our consolidated equity in income of unconsolidated joint ventures for the year ended December 30, 2011 increased by $61.9 million or 88.1% compared with the year ended December 31, 2010.  The increase was primarily due to a $34.5 million increase resulting from a $25.0 million charge taken in the comparable period in fiscal 2010 as compared to a $9.5 million favorable settlement recovery on a Southern California highway project recognized in fiscal year 2011, and a $21.6 million increase resulting from higher performance-based earnings on our nuclear management, operations and cleanup projects in the U.K.

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Operating Income (Loss)

(In millions, except percentages)	Infrastructure & Environment (1)			Federal Services (2)			Energy & Construction			Corporate			Total
Year ended
December 30, 2011	$	222.0		$	(151.5	)	$	(214.4	)	$	(79.5	)	$	(223.4	)
December 31, 2010		222.9			165.6			226.9		$	(71.0	)		544.4
Increase (decrease)		(0.9	)		(317.1	)		(441.3	)	$	8.5			(767.8	)
Percentage increase (decrease)		(0.4	%)		(191.5	%)		(194.5	%)		12.0	%		(141.0	%)

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

Our consolidated operating loss for the year ended December 30, 2011 was $223.4 million, a decrease of $767.8 million or 141.0% compared with operating income for the year ended December 31, 2010.

The operating loss for the year ended December 30, 2011 was the result of an $825.8 million goodwill impairment charge.  This charge was partially offset by operating income resulting from the increases in revenues and equity in income of unconsolidated joint ventures described above.  See the detailed discussion in operating income (loss) by segment below.

The Infrastructure & Environment Division’s Operating Income

Operating income as a percentage of revenues was 5.9% for the year ended December 30, 2011 compared to 6.9% for the year ended December 31, 2010. The decrease in operating income was caused primarily by our European and Middle Eastern operations, particularly in the U.K.  Lower European revenues resulted in decreases in the utilization of our staff and increases in systems integration-related costs, which caused decreases in our operating income.  These decreases were partially offset by a reduction in restructuring costs of $5.1 million and a reduction in acquisition expenses of $11.8 million that we incurred during the corresponding period last year related to our acquisition of Scott Wilson.  Overhead costs including acquisition-related expenses and restructuring costs as a percentage of revenues decreased from 32.0% to 31.2% for the years ended December 30, 2011 and December 31, 2010.

The Federal Services Division’s Operating Income (Loss)

Operating income (loss) as a percentage of revenues was (5.6)% for the year ended December 30, 2011, of which the goodwill impairment charge amounted to (12.9)%, compared to 6.4% for the year ended December 31, 2010. The loss was the result of a $348.3 million goodwill impairment charge taken during fiscal year 2011.  In addition to this charge, delayed awards of new task orders under existing contracts also contributed to the decrease in operating income.  These decreases were partially offset by increases in operating income resulting from our acquisition of Apptis in June 2011 and the recognition of performance-based incentive fees on various projects.

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The Energy & Construction Division’s Operating Income (Loss)

Operating income (loss) as a percentage of revenues was (6.6)% for the year ended December 30, 2011 compared to 6.6% for the year ended December 31, 2010. The loss was the result of a $477.5 million goodwill impairment charge recorded during fiscal year 2011.  The following results partially offset the goodwill impairment charge:

·   a $34.5 million increase resulting from a $25.0 million charge taken in the comparable period in fiscal 2010 as compared to a $9.5 million favorable settlement recovery on a Southern California highway project recognized in fiscal 2011;

·   a $21.6 million increase resulting from higher performance-based earnings on our nuclear management, operations and cleanup projects in the U.K.;

·   a $17.4 million increase due to higher performance-based earnings on a nuclear cleanup project;

·   an $11.9 million increase resulting from higher activity on a nuclear management services project;

·   an $11.9 million increase resulting from close-out and settlement of suspended mining projects in Jamaica; and

·   a $10.7 million increase resulting from our share of cost savings on an air quality control services project.

Other items reducing operating income were

·   a $13.6 million decrease resulting from a higher loss recorded in the current year compared to the prior year on a common sulfur project;

·   a $30.6 million decrease associated with completed projects;

·   a $10.0 million decrease resulting from a one-time schedule incentive earned in the prior year on a clean air project;

·   a $10.9 million decrease in major component replacement projects and other related services performed at nuclear power plants; and

·   a $10.9 million decrease resulting from a recovery in fiscal year 2010 related to legacy workers’ compensation and general liability insurance programs that did not recur in fiscal year 2011.

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Interest Expense

Our consolidated interest expense for the year ended December 30, 2011 decreased by $8.5 million or 27.8% compared with the year ended December 31, 2010.  This decrease was caused primarily by $7.8 million of interest expense we incurred in fiscal year 2010 on a floating-for-fixed interest rate swap, which matured on December 31, 2010.  We did not have a similar interest rate instrument in 2011.  The decrease was partially offset by a $2.9 million charge to write-off prepaid financing fees and debt issuance costs in connection with the extinguishment of our 2007 Credit Facility during fiscal year 2011.

Income Tax Expense

Our effective income tax rates for the years ended December 30, 2011 and  December 31, 2010 were (37.4%) and 24.8%, respectively.  See further discussion in the “Income Tax Expense” in the Liquidity and Capital Resources section below.

Noncontrolling Interests in Income of Consolidated Subsidiaries

Our noncontrolling interests in income of consolidated subsidiaries for the year ended December 30, 2011 increased by $30.2 million or 30.7% compared with the year ended December 31, 2010.  The increase in noncontrolling interests in income of consolidated subsidiaries was primarily due to a $12.2 million increase resulting from higher earnings on the nuclear management, operations and cleanup projects in the U.K., a $10.3 million increase in higher earnings on a DOE nuclear cleanup project, a $6.2 million increase in higher earnings on a levee construction project and a $5.7 million increase in earnings resulting from higher activity on a DOE nuclear management project for the treatment of high-level liquid waste.  These increases were partially offset by a $5.7 million decrease in major component replacement projects and other related services performed at nuclear power plants.

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LIQUIDITY AND CAPITAL RESOURCES

	Year Ended
	December 28,				December 30,				December 31,
(In millions)	2012				2011				2010
Cash flows from operating activities		$	430.2			$	505.9			$	526.4
Cash flows from investing activities			(1,446.6	)			(348.1	)			(299.8	)
Cash flows from financing activities			892.3				(294.3	)			(375.1	)

Overview

Our primary sources of liquidity are collections of accounts receivable from our clients, dividends from our unconsolidated joint ventures and borrowings related to our Senior Notes and lines of credit.  Our primary uses of cash are to fund working capital, acquisitions, income tax payments, and capital expenditures; to service our debt; to pay dividends; to repurchase our common stock; and to make distributions to the noncontrolling interests in our consolidated joint ventures.

Our cash flows from operations are primarily impacted by fluctuations in working capital requirements, which are affected by numerous factors, including the billing and payment terms of our contracts, the stage of completion of contracts performed by us, the timing of payments to vendors, subcontractors, and joint ventures, and the changes in income tax and interest payments, as well as unforeseen events or issues that may have an impact on our working capital.

Liquidity

Cash and cash equivalents include all highly liquid investments with maturities of 90 days or less at the date of purchase, including interest-bearing bank deposits and money market funds.  At December 28, 2012 and December 30, 2011, restricted cash was $17.1 million and $21.0 million, respectively, which amounts were included in “Other current assets” on our Consolidated Balance Sheets.  At December 28, 2012 and December 30, 2011, cash and cash equivalents included $80.1 million and $91.4 million, respectively, of cash held by our consolidated joint ventures, which is available only to fund activities and obligations related to the joint ventures.

Accounts receivable and costs and accrued earnings in excess of billings on contracts (also referred to as “Unbilled Accounts Receivable”)represent our primary sources of cash inflows from operations.  Unbilled Accounts Receivable represents amounts that will be billed to clients as soon as invoice support can be assembled, reviewed and provided to our clients, or when specific contractual billing milestones are achieved.  In some cases, Unbilled Accounts Receivable may not be billable for periods generally extending from two to six months and, occasionally, beyond a year.  As of December 28, 2012 and December 30, 2011, $264.9 million and $185.0 million, respectively, of Unbilled Accounts Receivable are not expected to become billable within twelve months of the balance sheet date and, as a result, are included as a component of “Other long-term assets.”  As of December 28, 2012 and December 30, 2011, significant unapproved change orders and claims, which are included in Unbilled Accounts Receivable, collectively represented approximately 3% and 2%, respectively, of our gross accounts receivable and Unbilled Accounts Receivable.

Net Accounts Receivable, which is comprised of accounts receivable and the current portion of Unbilled Accounts Receivable, net of receivable allowances, at December 28, 2012 was $2.9 billion, an increase of $665.8 million, or 30.2% over the balance at December 30, 2011.  The increase was primarily the result of $537.8 million from the Flint acquisition.  The remaining difference relates to normal flows within the billing cycle.

All accounts receivable and Unbilled Accounts Receivable are evaluated on a regular basis to assess the risk of collectability and allowances are provided as deemed appropriate.  Based on the nature of our customer base, including U.S. federal, state and local governments and large reputable companies, and contracts, we have not historically experienced significant write-offs related to receivables and Unbilled Accounts Receivable.  The size of our allowance for uncollectible receivables as a percentage of the combined totals of our accounts receivable and Unbilled Accounts Receivable is indicative of our history of successfully billing and collecting from our clients.

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As of December 28, 2012 and December 30, 2011, our receivable allowances represented 2.37% and 1.92%, respectively, of the combined total accounts receivable and the current portion of Unbilled Accounts Receivable.  We believe that our allowance for doubtful accounts receivable as of December 28, 2012 is adequate.  We have placed significant emphasis on collection efforts and continually monitor our receivables allowance.  However, future economic conditions may adversely affect the ability of some of our clients to make payments or the timeliness of their payments; consequently, it may also affect our ability to consistently collect cash from our clients to meet our operating needs.  The other significant factors that typically affect our realization of our accounts receivable include the billing and payment terms of our contracts, as well as the stage of completion of our performance under the contracts.  Our operating cash flows may also be affected by changes in contract terms or the timing of advance payments to our joint ventures, partnerships and partially-owned limited liability companies relative to the contract collection cycle.  In addition, substantial advance payments or billings in excess of costs also have an impact on our liquidity.  Billings in excess of costs as of December 28, 2012 and December 30, 2011 were $289.1 million and $310.8 million, respectively.

We use Days Sales Outstanding (“DSO”) to monitor the average time, in days, that it takes us to convert our accounts receivable into cash.  DSO also is a useful tool for investors to measure our liquidity and understand our average collection period.  We calculate DSO by dividing net accounts receivable, less billings in excess of costs and accrued earnings on contracts as of the end of the quarter by the amount of revenues recognized during the quarter, and multiplying the result of that calculation by the number of days in that quarter.  We included the non-current amounts in our calculation of DSO and the ratio of accounts receivable to revenues.  Our DSO increased from 79 days as of December 30, 2011 to 87 days as of December 28, 2012.

We also analyze the ratio of our accounts receivable to quarterly revenues (the “Ratio”), which changed from 86.8% at December 30, 2011 to 95.7% at December 28, 2012.  We calculate this ratio by dividing net accounts receivable less billings in excess of costs and accrued earnings on contracts as of the end of the quarter by the amount of revenues recognized during the quarter.  

The factors that affect the Ratio also have the same effect on DSO.  The increases in the Ratio, and therefore the increases in DSO, occurred primarily for the following reasons:

·   Accruals of amounts from performance-based incentives under long-term U.S. federal government contracts added 4.3% to our ratio of accounts receivable to revenues for the quarter ended December 30, 2011 and 8.1% for the quarter ended December 28, 2012.  These amounts were included in Unbilled Accounts Receivable and they become billable as provided under the terms of the contracts to which they relate.  We do not expect to bill for these incentives until 2013 and beyond.  Our Unbilled Accounts Receivable included amounts earned under milestone payment clauses, which provided for payments to be received beyond a year from the date service occurs.  Based on our historical experience, we generally consider the collection risk related to these amounts to be low.

·   Other, smaller increases in the ratio of accounts receivable to revenues were caused by:

o   Accruals related to reimbursement under U.S. federal government contracts for employee “stay-and-perform” incentive payments;

o   Receivables related to activity on a DOE deactivation, demolition, and removal project; and

o   Adjustments on some U.S. federal government contracts from bi-monthly to monthly billing cycles, U.S. federal government agency billing requirement changes and invoice reviews by the DCAA, which have caused delays and re-billings.

We believe that we have sufficient resources to fund our operating and capital expenditure requirements, to pay income taxes, and to service our debt for at least the next twelve months.  In the ordinary course of our business, we may experience various loss contingencies including, but not limited to, the pending legal proceedings identified in Note 17, “Commitments and Contingencies,” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report, which may adversely affect our liquidity and capital resources.

We have determined that the restricted net assets as defined by Rule 4-08(e)(3) of Regulation S-X are less than 25% of our consolidated net assets.

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Acquisition

On May 14, 2012, we acquired the outstanding common shares of Flint for C$25.00 per share in cash, or C$1.24 billion (US$1.24 billion based on the exchange rate on the date of acquisition) and paid $110.3 million of Flint’s debt prior to the closing of the transaction in exchange for a promissory note from Flint.  On the date of acquisition, Flint had outstanding Canadian notes with a face value of C$175.0 million (US$175.0 million), in addition to $31.6 million of other indebtedness.

On March 15, 2012, we issued two Senior Notes with an aggregate principal amount of $1.0 billion.  We used the net proceeds from the notes together with borrowings from our 2011 Credit Facility to finance our acquisition of Flint.  See Note 10, “Indebtedness,” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report, for more information regarding the Senior Notes.

Dividend Program

On February 24, 2012, our Board of Directors approved the initiation of a quarterly cash dividend program.  Our Board of Directors has declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Estimated Amount		Payment Date
(In millions, except per share data)
February 24, 2012	$	0.20	March 16, 2012	$	15.2	April 6, 2012
May 4, 2012	$	0.20	June 15, 2012	$	15.4	July 6, 2012
August 3, 2012	$	0.20	September 14, 2012	$	15.4	October 5, 2012
November 2, 2012	$	0.20	December 14, 2012	$	15.4	January 4, 2013

On February 22, 2013, our Board of Directors approved the continuation of this program and authorized a $0.21 per share quarterly dividend.  Future dividends are subject to approval by our Board of Directors or the Audit Committee of the Board of Directors.

Operating Activities

The decrease in cash flows from operating activities for the year ended December 28, 2012, compared to the year ended December 30, 2011, was primarily due to the timing of billings, collections and advance payments from clients on accounts receivables, employer contribution payments to our 401(k) plan, project incentive awards that were recognized but are not currently billable, and an increase in interest payments and acquisition expenses, partially offset by a decrease in income tax payments.

In 2011, we merged the Energy & Construction Division’s 401(k) plan into the company-wide 401(k) plan and the timing of employer contributions was shifted from a bi-weekly basis to an annual basis.  Prior to the merger of the plans, we generally made the employer contributions for the Energy & Construction Division’s 401(k) plan within the same fiscal year in which the benefits were earned.  Under the merged plan, we expect to pay the contributions in the first quarter following the end of the fiscal year.  Due to the difference in timing of contributions made, we paid $37.5 million more in contributions during the year ended December 28, 2012 compared to the same period last year.  If the plans were not merged, the majority of these contributions would have been made in 2011.

The decrease in cash flows from operating activities for the year ended December 30, 2011, compared to the year ended December 31, 2010, was primarily due to the timing of:  dividend distributions from our unconsolidated joint ventures, collections from clients on accounts receivable, advance project payments from clients, project performance payments, and vendor and subcontractor payments.  In addition, we made larger income tax payments.

During the first quarter of 2013, we expect to make estimated payments of $135.2 million to pension, post-retirement, defined contribution and multiemployer pension plans and incentive payments.

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Investing Activities

Cash flows used for investing activities of $1.4 billion during the year ended December 28, 2012 consisted of the following significant activities:

·   payments for business acquisition, net of cash acquired, of $1.3 billion; and

·   capital expenditures, excluding purchases financed through capital leases and equipment notes, of $125.4 million.

These cash flows were partially offset by:

·   proceeds from disposal of property and equipment of $25.3 million, including the residual payment received on the close out and settlement of mining projects in Jamaica.

Cash flows used for investing activities of $348.1 million during the year ended December 30, 2011 consisted of the following significant activities:

·   payments for business acquisition, net of cash acquired, of $282.1 million;

·   capital expenditures, excluding purchases financed through capital leases and equipment notes, of $67.5 million; and

·   disbursements related to advances to unconsolidated joint ventures of $19.6 million.

Cash flows used for investing activities of $299.8 million during the year ended December 31, 2010 consisted of the following significant activities:

·   payments for business acquisition, net of cash acquired, of $291.7 million;

·   capital expenditures, excluding purchases financed through capital leases and equipment notes, of $45.2 million; and

·   $16.1 million in net change in restricted cash balance primarily due to restrictions on cash balance of $28.0 million that collateralize the five-year loan notes that we issued to shareholders of Scott Wilson as an alternative to cash consideration, partially offset by the removal of restrictions on $11.9 million in cash held at a project.

These cash flows were partially offset by:

·   maturity of short-term investments of $30.2 million; and

·   consolidation of joint ventures, which resulted in a $20.7 million increase to the cash balance at the beginning of our 2010 fiscal year.

For fiscal year 2013, we expect to incur approximately $193 million in capital expenditures, a portion of which will be financed through capital leases or equipment notes.

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Financing Activities

Cash flows generated from financing activities of $892.3 million during the year ended December 28, 2012 consisted of the following significant activities:

·   proceeds of our Senior Notes, net of debt discount and issuance costs, of $990.1 million;

·   net borrowings from our revolving line of credit of $78.0 million; and

·   net change in overdrafts of $54.5 million.

These cash flows were partially offset by:

·   distributions to noncontrolling interests of consolidated joint ventures of $83.8 million;

·   dividend payments of $44.7 million;

·   repurchases of our common stock of $40.0 million; and

·   payment of $30.0 million of the term loan under our 2011 Credit Facility.

Cash flows used for financing activities of $294.3 million during the year ended December 30, 2011 consisted of the following significant activities:

·   payment of all outstanding indebtedness under our 2007 Credit Facility, which included outstanding term loans of $625.0 million and a drawn balance on our revolving line of credit in the amount of $50.0 million;

·   repurchases of our common stock of $242.8 million;

·   distributions to noncontrolling interests of consolidated joint ventures of $111.7 million; and

·   net change in overdrafts of $18.0 million.

These cash flows were partially offset by:

·   a term loan borrowing from our 2011 Credit Facility of $700.0 million; and

·   net borrowings from our revolving line of credit of $72.9 million under our 2011 Credit Facility.

Cash flows used for financing activities of $375.1 million during the year ended December 31, 2010 consisted of the following significant activities:

·   payments of $150.0 million of the term loans under our 2007 Credit Facility;

·   repurchases of our common stock of $128.3 million; and

·   distributions to noncontrolling interests of $107.2 million.

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Contractual Obligations and Commitments

The following table contains information about our contractual obligations and commercial commitments as of December 28, 2012:

Contractual Obligations	Payments and Commitments Due by Period
(Debt payments include principal only)			Less Than						After
(In millions)	Total		1 Year		1-3 Years		4-5 Years		5 Years		Other
As of December 28, 2012:
2011 Credit Facility (1)	$	670.0	$	18.1	$	126.9	$	525.0	$	—	$	—
3.85% Senior Notes (2)		400.0		—		—		400.0		—		—
5.00% Senior Notes (2)		600.0		—		—		—		600.0		—
7.50% Canadian Notes (2)		175.8		—		—		—		175.8		—
Revolving line of credit		100.5		—		—		100.5		—		—
Capital lease obligations (1)		59.2		28.5		20.0		10.7		—		—
Notes payable, foreign credit lines and other indebtedness		35.5		26.3		7.0		2.2		—		—
Total debt		2,041.0		72.9		153.9		1,038.4		775.8		—
Operating lease obligations (3)		801.0		224.9		267.7		145.5		162.9		—
Pension and other retirement plans funding requirements (4)		631.5		218.8		97.4		85.7		229.6		—
Interest (5)		502.0		74.9		147.6		124.7		154.8		—
Dividends payable (6)		16.7		15.6		0.9		0.2		—		—
Purchase obligations (7)		26.1		15.5		10.4		0.2		—		—
Asset retirement obligations (8)		13.8		1.9		2.6		3.9		5.4		—
Other contractual obligations (9)		78.0		65.5		—		—		—		12.5
Total contractual obligations	$	4,110.1	$	690.0	$	680.5	$	1,398.6	$	1,328.5	$	12.5

(1)   Amounts shown exclude unamortized debt issuance costs of $3.7 million for our 2011 Credit Facility.  For capital lease obligations, amounts shown exclude interest of $3.1 million.  For information regarding events that could accelerate the due dates of these payments, see “2011 Credit Facility” section below.

(2)   Amounts shown exclude unamortized discount for the 3.85% and 5.00% Senior Notes of $1.0 million, and unamortized premium for the 7.50% Canadian Notes of $28.0 million.  For information regarding events that could accelerate these payments, see “Senior Notes and Canadian Notes” section below.

(3)   Operating leases are predominantly real estate leases.

(4)   Amounts consist of estimated pension and other retirement plan funding requirements, to the extent that we were able to develop reasonable estimates, for various defined benefit, post-retirement, defined contribution, multiemployer, and other retirement plans.  Estimates do not include potential multiemployer plan termination or withdrawal amounts since we are unable to estimate the amount of contributions that could be required.

(5)   Interest for the next five years, which excludes non-cash interest, is determined based on the current outstanding balance of our debt and payment schedule at the estimated interest rate.

(6)   On February 24, 2012, our Board of Directors approved the initiation of a regular quarterly cash dividend program. Dividends for unvested restricted stock awards and units will be paid upon vesting.  Future dividends are subject to approval by our Board of Directors or, pursuant to delegated authority, the Audit Committee of the Board.

(7)   Purchase obligations consist primarily of software maintenance contracts.

(8)   Asset retirement obligations represent the estimated costs of removing and restoring our leased properties to the original condition pursuant to our real estate lease agreements.

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(9)   Other contractual obligations include accrued discretionary and non-discretionary bonuses, net liabilities for anticipated settlements and interest on our tax liabilities, accrued benefits for our executives pursuant to their employment agreements, and our contractual obligations to joint ventures.  Generally, it is not practicable to forecast or estimate the payment dates for the above-mentioned tax liabilities.  Therefore, we included the estimated liabilities under “Other” above.

Off-balance Sheet Arrangements

In the ordinary course of business, we may use off-balance sheet arrangements if we believe that such an arrangement would be an efficient way to lower our cost of capital or help us manage the overall risks of our business operations.  We do not believe that such arrangements have had a material adverse effect on our financial position or our results of operations.

The following are our off-balance sheet arrangements:

·   Letters of credit and bank guarantees are used primarily to support project performance, insurance programs, bonding arrangements and real estate leases.  We are required to reimburse the issuers of letters of credit and bank guarantees for any payments they make under the outstanding letters of credit or bank guarantees.  Our credit facilities and banking arrangements cover the issuance of our standby letters of credit and bank guarantees that are critical for our normal operations.  If we default on these credit facilities and banking arrangements, we would be unable to issue or renew standby letters of credit and bank guarantees, which would impair our ability to maintain normal operations.  As of December 28, 2012, we had $132.0 million in standby letters of credit outstanding under our 2011 Credit Facility and $36.3 million in bank guarantees outstanding under foreign credit facilities and other banking arrangements with remaining availability of approximately $24 million.

·   We have agreed to indemnify one of our joint venture partners up to $25.0 million for any potential losses, damages, and liabilities associated with lawsuits in relation to general and administrative services we provide to the joint venture.  Currently, we have not been advised of any indemnified claims under this guarantee.

·   We have guaranteed a letter of credit issued on behalf of one of our consolidated joint ventures.  The total amount of the letter of credit was $0.9 million as of December 28, 2012.

·   From time to time, we provide guarantees and indemnifications related to our services or work.  If our services under a guaranteed or indemnified project are later determined to have resulted in a material defect or other material deficiency, then we may be responsible for monetary damages or other legal remedies.  When sufficient information about claims on guaranteed or indemnified projects is available and monetary damages or other costs or losses are determined to be probable, we recognize such guarantee losses.

·   In the ordinary course of business, we enter into various agreements providing performance assurances and guarantees to clients on behalf of certain unconsolidated subsidiaries, joint ventures, and other jointly executed contracts.  We enter into these agreements primarily to support the project execution commitments of these entities.  The potential payment amount of an outstanding performance guarantee is typically the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts.  However, we are not able to estimate other amounts that may be required to be paid in excess of estimated costs to complete contracts and, accordingly, the total potential payment amount under our outstanding performance guarantees cannot be estimated.  For cost-plus contracts, amounts that may become payable pursuant to guarantee provisions are normally recoverable from the client for work performed under the contract.  For lump sum or fixed-price contracts, this amount is the cost to complete the contracted work less amounts remaining to be billed to the client under the contract.  Remaining billable amounts could be greater or less than the cost to complete.  In those cases where costs exceed the remaining amounts payable under the contract, we may have recourse to third parties, such as owners, co-venturers, subcontractors or vendors, for claims.

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·   In the ordinary course of business, our clients may request that we obtain surety bonds in connection with contract performance obligations that are not required to be recorded in our Consolidated Balance Sheets.  We are obligated to reimburse the issuer of our surety bonds for any payments made thereunder.  Each of our commitments under performance bonds generally ends concurrently with the expiration of our related contractual obligation.

2011 Credit Facility

As of December 28, 2012 and December 30, 2011, the outstanding balance of the term loan under our 2011 Credit Facility was $670.0 million and $700.0 million, respectively.  As of December 28, 2012 and December 30, 2011, the interest rates applicable to the term loan were 1.71% and 1.80%, respectively. Loans outstanding under our 2011 Credit Facility bear interest, at our option, at the base rate or at the London Interbank Offered Rate (“LIBOR”) plus, in each case, an applicable per annum margin.  The applicable margin is determined based on the better of our debt ratings or our leverage ratio in accordance with a pricing grid.  The interest rate at which we normally borrow is LIBOR plus 150 basis points.

Our 2011 Credit Facility will mature on October 19, 2016.  We have an option to prepay the term loans at any time without penalty.

Under our 2011 Credit Facility, we are subject to financial covenants and other customary non-financial covenants.  Our financial covenants include a maximum consolidated leverage ratio, which is calculated by dividing total debt by earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined below, and a minimum interest coverage ratio, which is calculated by dividing cash interest expense into EBITDA.  Both calculations are based on the financial data of our most recent four fiscal quarters.

For purposes of our 2011 Credit Facility, consolidated EBITDA is defined as consolidated net income attributable to URS plus interest, depreciation and amortization expense, income tax expense, and other non-cash items (including impairments of goodwill or intangible assets).  Consolidated EBITDA shall include pro-forma components of EBITDA attributable to any permitted acquisition consummated during the period of calculation.

Our 2011 Credit Facility contains restrictions, some of which apply only above specific thresholds, regarding indebtedness, liens, investments and acquisitions, contingent obligations, dividend payments, stock repurchases, asset sales, fundamental business changes, transactions with affiliates, and changes in fiscal year.

Our 2011 Credit Facility identifies various events of default and provides for acceleration of the obligations and exercise of other enforcement remedies upon default.  Events of default include our failure to make payments under the credit facility; cross-defaults; a breach of financial, affirmative and negative covenants; a breach of representations and warranties; bankruptcy and other insolvency events; the existence of unsatisfied judgments and attachments; dissolution; other events relating to the Employee Retirement Income Security Act; a change in control and invalidity of loan documents.

Our 2011 Credit Facility is guaranteed by all of our existing and future domestic subsidiaries that, on an individual basis, represent more than 10% of either our consolidated domestic assets or consolidated domestic revenues.  If necessary, additional domestic subsidiaries will be included so that assets and revenues of subsidiary guarantors are equal at all times to at least 80% of our consolidated domestic assets and consolidated domestic revenues of our available domestic subsidiaries.

We may use any future borrowings from our 2011 Credit Facility along with operating cash flows for general corporate purposes, including funding working capital, making capital expenditures, funding acquisitions, paying dividends and repurchasing our common stock.

We were in compliance with the covenants of our 2011 Credit Facility as of December 28, 2012.

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Senior Notes and Canadian Notes

On March 15, 2012, we issued in a private placement $400.0 million aggregate principal amount of 3.85% Senior Notes due on April 1, 2017 and $600.0 million aggregate principal amount of 5.00% Senior Notes due on April 1, 2022.  As of December 28, 2012, the outstanding balance of the Senior Notes was $999.0 million, net of $1.0 million of discount.

Interest on the Senior Notes is payable semi-annually on April 1 and October 1 of each year beginning on October 1, 2012.  The net proceeds of the Senior Notes were used to fund the acquisition of Flint.  We may redeem the Senior Notes, in whole or in part, at any time and from time to time, at a price equal to 100% of the principal amount, plus a "make-whole" premium and accrued and unpaid interest as described in the indenture.  In addition, we may redeem all or a portion of the 5.00% Senior Notes at any time on or after the date that is three months prior to the maturity date of those 5.00% Senior Notes, at a redemption price equal to 100% of the principal amount of the 5.00% Senior Notes to be redeemed.  We may also, at our option, redeem the Senior Notes, in whole, at 100% of the principal amount and accrued and unpaid interest upon the occurrence of certain events that result in an obligation to pay additional amounts as a result of certain specified changes in tax law described in the indenture.  Additionally, if a change of control triggering event occurs, as defined by the terms of the indenture, we will be required to offer to purchase the Senior Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of the purchase.  We are generally not limited under the indenture governing the Senior Notes in our ability to incur additional indebtedness provided we are in compliance with certain restrictive covenants, including restrictions on liens and restrictions on sale and leaseback transactions, and merger or sale of substantially all of our property and assets.

The Senior Notes are our general unsecured senior obligations and rank equally with our other existing and future unsecured senior indebtedness.  The Senior Notes are fully and unconditionally guaranteed (the “Guarantees”) by each of our current and future domestic subsidiaries that are guarantors under our 2011 Credit Facility or that are wholly owned domestic obligors or wholly owned domestic guarantors, individually or collectively, under any future indebtedness of our subsidiaries in excess of $100.0 million (the “Guarantors”).  The Guarantees are the Guarantors’ unsecured senior obligations and rank equally with the Guarantors’ other existing and future unsecured senior indebtedness.

In connection with the sale of the Senior Notes, we entered into a registration rights agreement under which we agreed to file a registration statement with the SEC offering to exchange any privately placed Senior Notes with substantially similar notes, except that the newly exchanged notes will be unrestricted and freely tradable securities.  We have agreed to use commercially reasonable efforts to cause the registration statement to be declared effective by the SEC and complete the exchange offer no later than March 15, 2013.  We do not expect to complete our exchange offer until after March 15, 2013.  After that date, we will be required to pay additional interest up to a maximum of 50 basis points to the holders of the Senior Notes until the exchange offer is completed.

On May 14, 2012, we guaranteed the Canadian Notes with an outstanding face value of C$175.0 million (US$175.0 million).  The Canadian Notes mature on June 15, 2019 and bear interest at 7.5% per year, payable in equal installments semi-annually in arrears on June 15 and December 15 of each year.  As of December 28, 2012, the outstanding balance of the Canadian Notes was $203.8 million, including $28.0 million of premium.

The Canadian Notes are Flint’s direct senior unsecured obligations and rank pari passu, subject to statutory preferred exceptions, with URS’ guarantee of that debt.  Prior to June 15, 2014, we may redeem up to 35.0% of the principal amount of the outstanding Canadian Notes with the net cash proceeds of one or more qualified equity offerings at a redemption price equal to 107.5% of the principal amount of the Canadian Notes, provided that at least 65.0% of the aggregate principal amount of the Canadian Notes remain outstanding.  We may also redeem the Canadian Notes prior to June 15, 2015 at a redemption price equal to 100.0% of the principal amount of the Canadian Notes plus an applicable premium.  We may also redeem the Canadian Notes on or after June 15, 2015 at a redemption price equal to 103.8% of the principal amount if redeemed in the twelve-month period beginning June 15, 2015; at a redemption price equal to 101.9% of the principal amount if redeemed in the twelve-month period beginning June 15, 2016 and at a redemption price equal to 100.0% of the principal amount if redeemed in the period beginning June 15, 2017 before maturity.

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Upon the occurrence of a change in control, Canadian Notes holders have a right to require that their Notes be redeemed at a cash price equal to 101.0% of the principal amount of the Canadian Notes.  Our acquisition of Flint constituted a change in control under the Canadian Note indenture and, as a result, the holders of the Canadian Notes had the right to require that their Notes be redeemed.  The Canadian Notes also contain covenants limiting our and some of our subsidiaries’ ability to create liens and restricting them from amalgamating, consolidating or merging with or into or winding up or dissolving into another person or selling, leasing, transferring, conveying or otherwise disposing of or assigning all or substantially all of their assets.  The Canadian Notes also contain covenants, which are suspended as long as the Canadian Notes have investment grade ratings, that would restrict us and some of our subsidiaries from making restricted payments, incurring indebtedness, selling assets and entering into transactions with affiliates.  As of December 28, 2012, the Canadian Notes carried investment grade ratings.

We were in compliance with the covenants of our Senior Notes and Canadian Notes as of December 28, 2012.

Revolving Line of Credit

Our revolving line of credit is used to fund daily operating cash needs and to support our standby letters of credit.  In the ordinary course of business, the use of our revolving line of credit is a function of collection and disbursement activities.  Our daily cash needs generally follow a predictable pattern that parallels our payroll cycles, which dictate, as necessary, our short-term borrowing requirements.

As of December 28, 2012 and December 30, 2011, we had outstanding balances of $100.5 million and $23.0 million, respectively, on our revolving line of credit.  As of December 28, 2012, we had issued $132.0 million of letters of credit, leaving $767.5 million available under our revolving credit facility.

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
Effective average interest rates paid on the revolving line of credit		1.9	%		1.3	%		3.0	%
Average daily revolving line of credit balances	$	139.5		$	25.9		$	0.3
Maximum amounts outstanding at any point during the year	$	420.0		$	104.6		$	12.1

Other Indebtedness

Notes payable, five-year loan notes, and foreign credit lines.  As of December 28, 2012 and December 30, 2011, we had outstanding amounts of $35.5 million and $53.1 million, respectively, in notes payable, five-year loan notes, and foreign lines of credit.  The weighted-average interest rates of the notes were approximately 4.68% and 4.04% as of December 28, 2012 and December 30, 2011, respectively.  Notes payable primarily include notes used to finance the purchase of office equipment, computer equipment and furniture.

As of December 28, 2012 and December 30, 2011, we maintained several foreign credit lines with aggregate borrowing capacity of $50.8 million and $33.7 million, respectively, and had remaining borrowing capacity of $47.7 million and $23.2 million, respectively.

Capital Leases.  As of December 28, 2012 and December 30, 2011, we had obligations under our capital leases of approximately $59.2 million and $27.3 million, respectively, consisting primarily of leases for office equipment, computer equipment, furniture, vehicles and automotive equipment, and construction equipment.

Operating Leases.  As of December 28, 2012 and December 30, 2011, we had obligations under our operating leases of approximately $801.0 million and $650.2 million, respectively, consisting primarily of real estate leases.

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Income Tax Expense

As of December 28, 2012, our federal net operating loss (“NOL”) carryovers were approximately $15.9 million.  These federal NOL carryovers expire in years 2021 through 2025.  In addition to the federal NOL carryovers, there are also state income tax NOL carryovers in various taxing jurisdictions of approximately $297.0 million.  These state NOL carryovers expire in years 2013 through 2031.  There are also foreign NOL carryovers in various jurisdictions of approximately $544.4 million.  The majority of the foreign NOL carryovers have no expiration date.  At December 28, 2012, the federal, state and foreign NOL carryovers resulted in a deferred tax asset of $132.2 million with a valuation allowance of $106.0 million established against this deferred tax asset.  None of the remaining net deferred tax assets related to NOL carryovers is individually material and management believes that it is more likely than not they will be realized.  Full recovery of our NOL carryovers will require that the appropriate legal entity generate taxable income in the future at least equal to the amount of the NOL carryovers within the applicable taxing jurisdiction.

As of December 28, 2012 and December 30, 2011, we have remaining tax-deductible goodwill of $223.2 million and $316.5 million, respectively, resulting from acquisitions.  The amortization of this goodwill is deductible over various periods ranging up to 14 years.  The tax deduction for goodwill for 2013 is expected to be approximately $85.5 million and is expected to be substantially lower beginning in 2015.

Valuation allowances for deferred tax assets are established when necessary to reduce deferred income tax assets to the amount expected to be realized. Based on expected future operating results, we believe that realization of deferred tax assets in excess of our valuation allowances is more likely than not.

We have indefinitely reinvested $499.1 million of undistributed earnings of our foreign operations outside of our U.S. tax jurisdiction as of December 28, 2012.  No deferred tax liability has been recognized for the remittance of such earnings to the U.S. since it is our intention to utilize these earnings in our foreign operations.  The determination of the amount of deferred taxes on these earnings is not practicable since the computation would depend on a number of factors that cannot be known unless a decision to repatriate the earnings is made.

The effective income tax rates for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 are as follows:

Year Ended	Effective Income Tax Rates
December 28, 2012		30.8	%
December 30, 2011		(37.4)	%
December 31, 2010		24.8	%

The 37.4% negative effective tax rate for the year ended December 30, 2011 differs from the statutory rate of 35% primarily due to the goodwill impairment charge taken during the year, a substantial portion of which is not deductible for tax purposes.

The effective income tax rate for the year ended December 31, 2010 is less than the statutory rate of 35% primarily due to a change in our indefinite reinvestment assertion during the year.  During our fiscal year 2010, we determined that our plans to expand our international presence would require that we indefinitely reinvest the earnings of all of our foreign subsidiaries offshore, which resulted in the reversal of the net U.S. deferred tax liability on the undistributed earnings of all foreign subsidiaries.  This benefit increased net income attributable to URS by $42.1 million.

On January 2, 2013, the American Taxpayer Relief Act of 2012 (“Act”) was enacted.  The Act provided tax relief for businesses by reinstating certain tax benefits and credits retroactively to January 1, 2012.  There are several provisions of the Act that impact us, but not significantly.  Income tax accounting rules require tax law changes to be recognized in the period of enactment; as such, the associated tax benefits of the Act will be recognized in our provision for income taxes in the first quarter of 2013.

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No cash distributions were made from our foreign subsidiaries to their U.S. shareholders in fiscal years 2010, 2011 or 2012.

As of December 28, 2012, December 30, 2011 and December 31, 2010, we had $15.4 million, $16.7 million and $21.5 million of unrecognized tax benefits, respectively.  Included in the balance of unrecognized tax benefits at the end of fiscal year 2012 were $11.4 million of tax benefits, which, if recognized, would affect our effective tax rate.  A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended
	December 28,			December 30,			December 31,
(In millions)	2012			2011			2010
Unrecognized tax benefits beginning balance	$	16.7		$	21.5		$	25.2
Gross increase – tax positions in prior years		1.2			2.7			1.1
Gross decrease – tax positions in prior years		(1.2	)		(3.6	)		(1.5	)
Gross increase – current period tax positions		1.2			—			1.4
Settlements		(0.2	)		(0.2	)		(0.2	)
Lapse of statute of limitations		(2.4	)		(3.7	)		(5.3	)
Unrecognized tax benefits acquired in current year		0.1			—			0.8
Unrecognized tax benefits ending balance	$	15.4		$	16.7		$	21.5

We recognize accrued interest related to unrecognized tax benefits in interest expense and penalties as a component of tax expense.  During the years ended December 28, 2012, December 30, 2011 and December 31, 2010, we recognized $(1.4) million, $(1.4) million and $1.5 million, respectively, in interest and penalties.  We have accrued approximately $5.3 million, $6.7 million and $8.1 million in interest and penalties as of December 28, 2012, December 30, 2011 and December 31, 2010, respectively.  With a few exceptions, in jurisdictions where our tax liability is immaterial, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2008.

It is reasonably possible that unrecognized tax benefits will decrease up to $2.7 million within the next twelve months as a result of the settlement of tax audits.  The timing and amounts of these audit settlements are uncertain, but we do not expect any of these settlements to have a significant impact on our financial position or results of operations.

Other Comprehensive Income (Loss)

Our other comprehensive income (loss), net of tax for the year ended December 28, 2012 was comprised of pension and post-retirement adjustments, and foreign currency translation adjustments.  The 2012 pension and post-retirement adjustment of $26.6 million, net of tax, was caused primarily by a decrease in the discount rate employed in the actuarial assumptions.  The 2012 foreign currency translation gain of $24.8 million resulted from the strengthening of the U.S. dollar against foreign currencies.  See Note 18, “Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss)” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report for more disclosure about our other comprehensive loss.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions in the application of certain accounting policies that affect amounts reported in our consolidated financial statements and related footnotes included in Item 8 of this report.  In preparing these financial statements, we have made our best estimates and judgments of certain amounts, after considering materiality.  Application of these accounting policies, however, involves the exercise of judgment and the use of assumptions as to future uncertainties.  Consequently, actual results could differ from our estimates, and these differences could be material.

The following are the accounting policies that we believe are most critical to an investor’s understanding of our financial results and condition and that require complex judgments by management.  There were no material changes to these critical accounting policies during the year ended December 28, 2012.

Consolidation of Variable Interest Entities

We participate in joint ventures, which include partnerships and partially-owned limited liability companies to bid, negotiate and complete specific projects.  We are required to consolidate these joint ventures if we hold the majority voting interest or if we meet the criteria under the variable interest model as described below.

A variable interest entity (“VIE”) is an entity with one or more of the following characteristics (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns; or (c) the equity investors have voting rights that are not proportional to their economic interests.

Our VIEs may be funded through contributions, loans and/or advances from the joint venture partners or by advances and/or letters of credit provided by our clients.  Our VIEs may be directly governed, managed, operated and administered by the joint venture partners.  Others have no employees and, although these entities own and hold the contracts with the clients, the services required by the contracts are typically performed by the joint venture partners or by other subcontractors.

If we are determined to be the primary beneficiary of the VIE, we are required to consolidate it.  We are considered to be the primary beneficiary if we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE.  In determining whether we are the primary beneficiary, we take into consideration the following:

·   Identifying the significant activities and the parties that would perform them;

·   Reviewing the governing board composition and participation ratio;

·   Determining the equity, profit and loss ratio;

·   Determining the management-sharing ratio;

·   Reviewing employment terms, including which joint venture partner provides the project manager; and

·   Reviewing the funding and operating agreements.

Examples of our significant activities include the following:

·   Engineering services;

·   Procurement services;

·   Construction;

·   Construction management; and

·   Operations and maintenance services.

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Based on the above, if we determine that the power to direct the significant activities is shared by two or more joint venture parties, then there is no primary beneficiary and no party consolidates the VIE.  In making the shared-power determination, we analyze the key contractual terms, governance, related party and de facto agency as they are defined in the accounting standard, and other arrangements to determine if the shared power exists.

We determined that we were the primary beneficiary of, and therefore, must consolidate 11 joint ventures in which we did not have a majority voting interest as of and for the year ended December 28, 2012.

Total revenues of these joint ventures for the year ended December 28, 2012 were less than 10% of our total consolidated revenues.  The net impact of these joint ventures on segment revenues for the year ended December 28, 2012 was less than 15% of total segment revenues for each segment.  There was no impact on our debt as a result of consolidating these joint ventures.

We perform a quarterly re-assessment of our status as primary beneficiary.  This evaluation may result in a newly consolidated joint venture or in deconsolidating a previously consolidated joint venture.  See Note 6, “Joint Ventures” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report for further information on our VIEs.

Revenue Recognition

We recognize revenues from engineering, construction and construction-related contracts using the percentage-of-completion method as project progress occurs.  Service-related contracts, including operations and maintenance services and a variety of technical assistance services, are accounted for using the proportionate performance method as project progress occurs.

Percentage of Completion.  Under the percentage-of-completion method, revenue is recognized as contract performance progresses.  We estimate the progress towards completion to determine the amount of revenue and profit to recognize.  We generally utilize a cost-to-cost approach in applying the percentage-of-completion method, where revenue is earned in proportion to total costs incurred, divided by total costs expected to be incurred.  Costs are generally determined from actual hours of labor effort expended at per-hour labor rates calculated using a labor dollar multiplier that includes direct labor costs and allocable overhead costs.  Direct non-labor costs are charged as incurred plus any mark-up permitted under the contract.

Under the percentage-of-completion method, recognition of profit is dependent upon the accuracy of a variety of estimates, including engineering progress, materials quantities, and achievement of milestones, incentives, penalty provisions, labor productivity, cost estimates and others.  Such estimates are based on various professional judgments we make with respect to those factors and are subject to change as the project proceeds and new information becomes available.

Proportional Performance.  Our service contracts are accounted for using the proportional performance method, under which revenue is recognized in proportion to the number of service activities performed, in proportion to the direct costs of performing the service activities, or evenly across the period of performance depending upon the nature of the services provided.

Revenues from all contracts may vary based on the actual number of labor hours worked and other actual contract costs incurred.  If actual labor hours and other contract costs exceed the original estimate agreed to by our client, we generally obtain a change order, contract modification or successfully prevail in a claim in order to receive and recognize additional revenues relating to the additional costs (see “Change Orders and Claims” below).

If estimated total costs on any contract indicate a loss, we charge the entire estimated loss to operations in the period the loss becomes known.  The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, incentive awards, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss or change in estimates are known and the loss can be reasonably estimated.  Such revisions could occur at any time and the effects may be material.

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We have a history of making reasonably dependable estimates of the extent of progress towards completion, contract revenue and contract completion costs on our long-term engineering and construction contracts.  However, due to uncertainties inherent in the estimation process, it is possible that actual completion costs may vary from estimates.

Change Orders and Claims.  Change orders and/or claims occur when changes are experienced once contract performance is underway, and may arise under any of the contract types described below.

Change orders are modifications of an original contract that effectively change the existing provisions of the contract.  Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work.  Either we or our clients may initiate change orders.  Client agreement as to the terms of change orders is, in many cases, reached prior to work commencing; however, sometimes circumstances require that work progress without obtaining client agreement.  Costs related to change orders are recognized as incurred.  Revenues attributable to change orders that are unapproved as to price or scope are recognized to the extent that costs have been incurred if the amounts can be reliably estimated and their realization is probable.  Revenues in excess of the costs attributable to change orders that are unapproved as to price or scope are recognized only when realization is assured beyond a reasonable doubt.  Change orders that are unapproved as to both price and scope are evaluated as claims.

Claims are amounts in excess of agreed contract prices that we seek to collect from our clients or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs.  Claims are included in total estimated contract revenues when the contract or other evidence provides a legal basis for the claim, when the additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of the deficiencies in the contract performance, when the costs associated with the claim are identifiable, and when the evidence supporting the claim is objective and verifiable.  Revenue on claims is recognized only to the extent that contract costs related to the claims have been incurred and when it is probable that the claim will result in a bona fide addition to contract value which can be reliably estimated.  No profit is recognized on claims until final settlement occurs.  As a result, costs may be recognized in one period while revenues may be recognized when client agreement is obtained or claims resolution occurs, which can be in subsequent periods.

“At-risk” and “Agency” Contracts.  The amount of revenues we recognize also depends on whether the contract or project represents an at-risk or an agency relationship between the client and us.  Determination of the relationship is based on characteristics of the contract or the relationship with the client.  For at-risk relationships where we act as the principal to the transaction, the revenue and the costs of materials, services, payroll, benefits, and other costs are recognized at gross amounts.  For agency relationships, where we act as an agent for our client, only the fee revenue is recognized, meaning that direct project costs and the related reimbursement from the client are netted.  Revenues from agency contracts and collaborative arrangements were not a material part of revenues for any period presented.

In classifying contracts or projects as either at-risk or agency, we consider the following primary characteristics to be indicative of at-risk relationships:  (i) we acquire the related goods and services using our procurement resources, (ii) we assume the risk of loss under the contract and (iii) we are responsible for insurance coverage, employee-related liabilities and the performance of subcontractors.

We consider the following primary characteristics to be indicative of agency relationships:  (i) our client owns the work facilities utilized under the contract, (ii) we act as a procurement agent for goods and services acquired with client funds, (iii) our client is invoiced for our fees, (iv) our client is exposed to the risk of loss and maintains insurance coverage, and (v) our client is responsible for employee-related benefit plan liabilities and any remaining liabilities at the end of the contract.

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Contract Types

Our contract types include cost-plus, target-price, fixed-price, and time-and-materials contracts.  Revenue recognition is determined based on the nature of the service provided, irrespective of the contract type, with engineering, construction and construction-related contracts accounted for under the percentage-of-completion method and service-related contracts accounted for under the proportional performance method.

Cost-Plus Contracts.  We enter into four major types of cost-plus contracts.  Revenue for the majority of our cost-plus contracts is recognized using the percentage-of-completion method:

Cost-Plus Fixed Fee.  Under cost-plus fixed fee contracts, we charge our clients for our costs, including both direct and indirect costs, plus a fixed negotiated fee.

Cost-Plus Fixed Rate.  Under our cost-plus fixed rate contracts, we charge clients for our direct costs plus negotiated rates based on our indirect costs.

Cost-Plus Award Fee.  Some cost-plus contracts provide for award fees or penalties based on performance criteria in lieu of a fixed fee or fixed rate.  Other contracts include a base fee component plus a performance-based award fee.  In addition, we may share award fees with subcontractors and/or our employees.  We accrue fee sharing on a monthly basis as related award fee revenue is earned.  We take into consideration the award fee or penalty on contracts when estimating revenues and profit rates, and we record revenues related to the award fees when there is sufficient information to assess anticipated contract performance.  On contracts that represent higher than normal risk or technical difficulty, we defer all award fees until an award fee letter is received.  Once an award fee letter is received, the estimated or accrued fees are adjusted to the actual award amount.

Cost-Plus Incentive Fee.  Some of our cost-plus contracts provide for incentive fees based on performance against contractual milestones.  The amount of the incentive fees vary, depending on whether we achieve above-, at- or below-target results.  We recognize incentive fees revenues as milestones are achieved, assuming that we will achieve at-target results, unless our estimates indicate our cost at completion to be significantly above or below target.

Target-Price Contracts.  Under our target-price contracts, project costs are reimbursable.  Our fee is established against a target budget that is subject to changes in project circumstances and scope.  Should the project costs exceed the target budget within the agreed-upon scope, we generally degrade a portion of our fee or profit to mitigate the excess cost; however, the customer reimburses us for the costs that we incur if costs continue to escalate beyond our expected fee.  If the project costs are less than the target budget, we generally recover a portion of the project cost savings as additional fee or profit.  We recognize revenues on target-price contracts using the percentage-of-completion method.

Fixed-Price Contracts.  We enter into two major types of fixed-price contracts:

Firm Fixed-Price (“FFP”).  Under FFP contracts, our clients pay us an agreed fixed-amount negotiated in advance for a specified scope of work.  We generally recognize revenues on FFP contracts using the percentage-of-completion method.  If the nature or circumstances of the contract prevent us from preparing a reliable estimate at completion, we will delay profit recognition until adequate information about the contract’s progress becomes available.  Prior to completion, our recognized profit margins on any FFP contract depend on the accuracy of our estimates and will increase to the extent that our current estimates of aggregate actual costs are below amounts previously estimated.  Conversely, if our current estimated costs exceed prior estimates, our profit margins will decrease and we may realize a loss on a project.

Fixed-Price Per Unit (“FPPU”).  Under our FPPU contracts, clients pay us a set fee for each service or production transaction that we complete.  We recognize revenues under FPPU contracts as we complete the related service or production transactions for our clients generally using the proportional performance method.  Some of our FPPU contracts are subject to maximum contract values.

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Time-and-Materials Contracts.  Under our time-and-materials contracts, we negotiate hourly billing rates and charge our clients based on the actual time that we spend on a project.  In addition, clients reimburse us for our actual out-of-pocket costs of materials and other direct incidental expenditures that we incur in connection with our performance under the contract.  The majority of our time-and-material contracts are subject to maximum contract values and, accordingly, revenues under these contracts are generally recognized under the percentage-of-completion method.  However, time and materials contracts that are service-related contracts are accounted for utilizing the proportional performance method.  Revenues on contracts that are not subject to maximum contract values are recognized based on the actual number of hours we spend on the projects plus any actual out-of-pocket costs of materials and other direct incidental expenditures that we incur on the projects.  Our time-and-materials contracts also generally include annual billing rate adjustment provisions.

Goodwill and Intangible Assets Impairment Review

Goodwill may be impaired if the estimated fair value of one or more of our reporting units’ goodwill is less than the carrying value of the unit’s goodwill.  Because we have grown through acquisitions, goodwill and other net intangible assets were $3.9 billion as of December 28, 2012.  We perform an analysis on our goodwill balances to test for impairment on an annual basis and whenever events occur or circumstances change that indicate impairment could exist.  There are several instances that may cause us to further test our goodwill for impairment between the annual testing periods including:  (i) continued deterioration of market and economic conditions that may adversely impact our ability to meet our projected results; (ii) declines in our stock price caused by continued volatility in the financial markets that may result in increases in our weighted-average cost of capital or other inputs to our goodwill assessment; and (iii) the occurrence of events that may reduce the fair value of a reporting unit below its carrying amount, such as the sale of a significant portion of one or more of our reporting units.

We perform our annual goodwill impairment review as of the end of the first month following our September reporting period and also perform interim impairment reviews if triggering events occur.  Our 2012 annual review, performed as of October 26, 2012, did not indicate any further adjustment to our goodwill.  No events or changes in circumstances have occurred that would indicate any additional impairment adjustment of goodwill since our annual testing date.  We continue to monitor the recoverability of our goodwill.

During fiscal year 2011, our market capitalization was reduced due to stock market volatility and declines in our stock price.  For the year ended December 30, 2011, we recorded goodwill impairment charges in five of our reporting units totaling $825.8 million ($732.2 million after tax). These non-cash charges reduced goodwill recorded in connection with previous acquisitions and did not impact our overall business operations.  There was no goodwill impairment for any of our reporting units during the years ended December 28, 2012 and December 31, 2010.

We believe the methodology that we use to review impairment of goodwill, which includes a significant amount of judgment and estimates, provides us with a reasonable basis to determine whether impairment has occurred.  However, many of the factors employed in determining whether our goodwill is impaired are outside of our control, and it is reasonably likely that assumptions and estimates will change in future periods.  These changes could result in future impairments.

Goodwill impairment reviews involve a two-step process.  The first step is a comparison of each reporting unit’s fair value to its carrying value.  We estimate fair value using discounted cash flow analyses, referred to as the income approach.  The income approach uses a reporting unit’s projection of estimated cash flows and discounts those back to the present using a weighted-average cost of capital that reflects current market conditions.  To arrive at our cash flow projections, we consider estimates of economic and market activity over a projection period of ten years, management’s expectation of growth rates in revenues, costs, and estimates of future expected changes in operating margins and capital expenditures.  Other significant estimates and assumptions include long-term growth rates and changes in future working capital requirements.

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We also consider indications obtained from the market approach.  We applied market multiples derived from market prices of stocks of companies that are engaged in the same or similar lines of business as our reporting units and that are actively traded on a free and open market, or applied market multiples derived from transactions of significant interests in companies engaged in the same or similar lines of business as our reporting units, to the corresponding measure of financial performance for our reporting units that produces estimates of value at the noncontrolling marketable level.

In reaching our final estimate of value, we considered the fair values derived from using both the income and market approaches.  We gave primary weight to the income approach because it was deemed to be the most applicable.

When performing our impairment analysis, we also reconcile the sum of the fair values of our reporting units with our market capitalization to determine if the sum reasonably reconciles to the external market indicators.  If our reconciliation indicates a significant difference between our external market capitalization and the fair values of our reporting units, we review and adjust, if appropriate, our weighted-average cost of capital and examine whether the implied control premium is reasonable in light of current market conditions.

If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment.  The amount of impairment is determined by comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the goodwill calculated in the same manner as if the reporting unit were being acquired in a business combination.  If the implied fair value of goodwill is less than its carrying value, we would record an impairment charge for the difference.

We also perform an analysis on our intangible assets to test for impairment whenever events occur that indicate impairment could exist.

See Note 9, “Goodwill and Intangible Assets” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report for more disclosure about our goodwill impairment reviews.

Receivable Allowances

We reduce our accounts receivable and costs and accrued earnings in excess of billings on contracts by establishing an allowance for amounts that, in the future, may become uncollectible or unrealizable, respectively.  We determine our estimated allowance for uncollectible amounts based on management’s judgments regarding our operating performance related to the adequacy of the services performed or products delivered, the status of change orders and claims, our experience settling change orders and claims and the financial condition of our clients, which may be dependent on the type of client and current economic conditions to which the client may be subject.

Deferred Income Taxes

We use the asset and liability approach for financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances based on our judgments and estimates are established when necessary to reduce deferred tax assets to the amount expected to be realized in future operating results.  Management believes that realization of deferred tax assets in excess of the valuation allowance is more likely than not.  Our estimates are based on facts and circumstances in existence as well as interpretations of existing tax regulations and laws applied to the facts and circumstances, with the help of professional tax advisors.  Therefore, we estimate and provide for amounts of additional income taxes that may be assessed by the various taxing authorities.

87

Self-insurance Reserves

Self-insurance reserves represent reserves established as a result of insurance programs under which we have self-insured portions of our business risks.  We carry substantial premium-paid, traditional risk transfer insurance for our various business risks; however, we self-insure and establish reserves for the retentions on workers’ compensation insurance, general liability, automobile liability, and professional errors and omissions liability.

Defined Benefit and Post-retirement Benefit Plans

We account for our defined benefit pension plans and post-retirement benefits using actuarial valuations that are based on assumptions, including discount rates, long-term rates of return on plan assets, and rates of change in participant compensation levels.  We evaluate the funded status of each of our defined benefit pension plans and post-retirement benefit plans using these assumptions, consider applicable regulatory requirements, tax deductibility, reporting considerations and other relevant factors, and thereby determine the appropriate funding level for each period.  The discount rate used to calculate the present value of the pension benefit obligation is assessed at least annually.  The discount rate represents the rate inherent in the price at which the plans’ obligations are intended to be settled at the measurement date.

Holding all other assumptions constant, changes in the discount rate assumption that we used in our annual analysis would have the following estimated effect on the benefit obligations of our defined benefit and post-retirement benefit plans as shown in the table below.

Change in an Assumption (In millions)	Domestic Defined Benefit Plans			Foreign Defined Benefit Plans			Post-retirement Benefit Plans
25 basis point increase in discount rate	$	(13.2	)	$	(22.2	)	$	(0.8	)
25 basis point decrease in discount rate	$	14.2		$	23.6		$	0.9

Hypothetical changes in all other key assumptions of 25 basis points have an immaterial impact on the benefit obligations of our defined benefit and post-retirement benefit plans.  Hypothetical changes in key assumptions of 25 basis points also have an immaterial impact on net periodic pension costs of these plans.

Business Combinations

We account for business combinations under the purchase accounting method.  The cost of an acquired company is assigned to the tangible and intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition.  The determination of fair values of assets and liabilities acquired requires us to make estimates and use valuation techniques when market value is not readily available.  Any excess of purchase price over the fair value of the tangible and intangible assets acquired is allocated to goodwill.  The transaction costs associated with business combinations are expensed as they are incurred.

ADOPTED AND OTHER RECENTLY ISSUED ACCOUNTING STANDARDS

See Note 2, “Adopted and Other Recently Issued Statements of Financial Accounting Standards,” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report.

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ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

We are exposed to changes in interest rates as a result of our borrowings under our 2011 Credit Facility.  Based on the outstanding term loan of $670.0 million under our 2011 Credit Facility, if market rates used to calculate interest expense were to average 1% higher in the next twelve months, our net-of-tax interest expense would increase by approximately $4.2 million.  As market rates are at historically low levels, the index rate used to calculate our interest expense cannot drop by the full 1% as our current variable index is 0.25%.  If our variable margin rate drops by 0.25%, it would lower our net-of-tax interest expense by approximately $1.0 million.  This analysis is computed taking into account the current outstanding term loan of our 2011 Credit Facility, assumed interest rates and current debt payment schedule.  The result of this analysis would change if the underlying assumptions were modified.

Foreign Currency Risk

The majority of our transactions are in U.S. dollars; however, our foreign subsidiaries conduct businesses in various foreign currencies.  Therefore, we are subject to currency exposures and volatility because of currency fluctuations.  We attempt to minimize our exposure to foreign currency fluctuations by matching our revenues and expenses in the same currency for our contracts.  From time to time, we purchase derivative financial instruments in the form of foreign currency exchange contracts to manage specific foreign currency exposures.  We had a foreign currency translation gain of $24.8 million, a foreign currency translation loss of $11.2 million, and a foreign currency translation gain of $8.8 million for the years ended December 28, 2012, December 30, 2011 and December 31, 2010, respectively.

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ITEM 8.  CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of URS Corporation:

In our opinion, the accompanying consolidated financial statements listed in the index appearing under Item 15(a)1 present fairly, in all material respects, the financial position of URS Corporation and its subsidiaries at December 28, 2012 and December 30, 2011 and the results of their operations and their cash flows for each of the three years in the period ended December 28, 2012 in conformity with accounting principles generally accepted in the United States of America.  Also in our opinion, the Company did not maintain, in all material respects, effective internal control over financial reporting as of December 28, 2012, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) because a material weakness in internal control over financial reporting related to some key accounting personnel who have the ability to prepare and post journal entries without an independent review by someone without the ability to prepare and post journal entries existed as of that date.  A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.  The material weakness referred to above is described in Management's Annual Report on Internal Control over Financial Reporting appearing under Item 9A.  We considered this material weakness in determining the nature, timing, and extent of audit tests applied in our audit of the December 28, 2012 consolidated financial statements, and our opinion regarding the effectiveness of the Company’s internal control over financial reporting does not affect our opinion on those consolidated financial statements.  The Company's management is responsible for these financial statements, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in management's report referred to above.  Our responsibility is to express opinions on these financial statements and on the Company's internal control over financial reporting based on our integrated audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects.  Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.  Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.  Our audits also included performing such other procedures as we considered necessary in the circumstances.  We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

90

As described in Management’s Annual Report on Internal Control over Financial Reporting, management has excluded Flint Energy Services, Ltd. (“Flint”) from its assessment of internal control over financial reporting as of December 28, 2012 because it was acquired by the Company in a business combination during 2012.  We have also excluded Flint from our audit of internal control over financial reporting.  Flint is a wholly-owned subsidiary whose total assets and total revenues represent 12% and 13% respectively, of the related consolidated financial statement amounts as of and for the year ended December 28, 2012.

/s/   PricewaterhouseCoopers LLP                                                                

San Francisco, California

February 25, 2013

91

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS6

(In millions, except per share data)

	December 28, 2012			December 30, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	314.5		$	436.0
Accounts receivable, including retentions of $114.4 and $67.5, respectively		1,554.8			1,114.7
Costs and accrued earnings in excess of billings on contracts		1,384.3			1,132.0
Less receivable allowances		(69.7	)		(43.1	)
Net accounts receivable		2,869.4			2,203.6
Deferred tax assets		67.6			63.0
Inventory		61.5			19.5
Other current assets		204.2			181.8
Total current assets		3,517.2			2,903.9
Investments in and advances to unconsolidated joint ventures		278.3			107.7
Property and equipment at cost, net		687.5			269.4
Intangible assets, net		692.2			522.0
Goodwill		3,247.1			2,773.0
Other long-term assets		364.2			286.6
Total assets	$	8,786.5		$	6,862.6
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	71.8		$	61.5
Accounts payable and subcontractors payable, including retentions of $32.3 and $39.6, respectively		803.5			659.1
Accrued salaries and employee benefits		558.8			527.0
Billings in excess of costs and accrued earnings on contracts		289.1			310.8
Other current liabilities		277.8			176.5
Total current liabilities		2,001.0			1,734.9
Long-term debt		1,992.5			737.0
Deferred tax liabilities		328.3			276.5
Self-insurance reserves		129.8			132.7
Pension and post-retirement benefit obligations		300.9			276.0
Other long-term liabilities		271.0			221.1
Total liabilities		5,023.5			3,378.2
Commitments and contingencies (Note 17)
URS stockholders’ equity:
Preferred stock, authorized 3.0 shares; no shares outstanding		—			—
Common stock, par value $.01; authorized 200.0 shares; 88.9 and 87.8 shares issued, respectively; and 76.8 and 76.7 shares outstanding, respectively		0.9			0.9
Treasury stock, 12.1 and 11.1 shares at cost, respectively		(494.9	)		(454.9	)
Additional paid-in capital		3,003.9			2,966.8
Accumulated other comprehensive loss		(113.2	)		(110.8	)
Retained earnings		1,224.4			975.2
Total URS stockholders’ equity		3,621.1			3,377.2
Noncontrolling interests		141.9			107.2
Total stockholders’ equity		3,763.0			3,484.4
Total liabilities and stockholders’ equity	$	8,786.5		$	6,862.6

See Notes to Consolidated Financial Statements

92

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

	Year Ended
	December 28,			December 30,			December 31,
	2012			2011			2010
Revenues	$	10,972.5		$	9,545.0		$	9,177.1
Cost of revenues		(10,294.5	)		(8,988.8	)		(8,609.5	)
General and administrative expenses		(83.6	)		(79.5	)		(71.0	)
Acquisition-related expenses (Note 8)		(16.1	)		(1.0	)		(11.9	)
Restructuring costs (Note 17)		—			(5.5	)		(10.6	)
Goodwill impairment (Note 9)		—			(825.8	)		—
Equity in income of unconsolidated joint ventures		107.6			132.2			70.3
Operating income (loss)		685.9			(223.4	)		544.4
Interest expense		(70.7	)		(22.1	)		(30.6	)
Other income (expenses)		0.5			—			—
Income (loss) before income taxes		615.7			(245.5	)		513.8
Income tax expense		(189.9	)		(91.8	)		(127.6	)
Net income (loss) including noncontrolling interests		425.8			(337.3	)		386.2
Noncontrolling interests in income of consolidated subsidiaries		(115.2	)		(128.5	)		(98.3	)
Net income (loss) attributable to URS	$	310.6		$	(465.8	)	$	287.9
Earnings (loss) per share (Note 3):
Basic	$	4.18		$	(6.03	)	$	3.56
Diluted	$	4.17		$	(6.03	)	$	3.54
Weighted-average shares outstanding (Note 3):
Basic		74.3			77.3			81.0
Diluted		74.5			77.3			81.3
Cash dividends declared per share (Note 15)	$	0.80		$	—		$	—

See Notes to Consolidated Financial Statements

93

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

	Year Ended
	December 28,			December 30,			December 31,
	2012			2011			2010
Comprehensive income (loss):
Net income (loss) including noncontrolling interests	$	425.8		$	(337.3	)	$	386.2
Pension and post-retirement related adjustments, net of tax		(26.6	)		(62.7	)		(0.7	)
Foreign currency translation adjustments, net of tax		24.8			(11.2	)		8.8
Loss on derivative instruments, net of tax		(0.6	)		—			—
Unrealized gain on interest rate swap, net of tax		—			—			4.2
Comprehensive income (loss)		423.4			(411.2	)		398.5
Noncontrolling interests in comprehensive income of consolidated subsidiaries		(115.2	)		(128.5	)		(98.3	)
Comprehensive income (loss) attributable to URS	$	308.2		$	(539.7	)	$	300.2

See Notes to Consolidated Financial Statements

94

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In millions)

												Accumulated
									Additional			Other					Total URS
	Common Stock					Treasury			Paid-in			Comprehensive			Retained		Stockholders’			Noncontrolling			Total
	Shares			Amount		Stock			Capital			Income (Loss)			Earnings		Equity			Interests			Equity
Balances, January 1, 2010		84.0		$	0.9	$	(83.8	)	$	2,884.9		$	(49.2	)	$	1,153.1	$	3,905.9		$	44.6		$	3,950.5
Employee stock purchases and exercises of stock options		0.3			—		—			11.3			—			—		11.3			—			11.3
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards		(0.3	)		—		—			(17.1	)		—			—		(17.1	)		—			(17.1	)
Stock-based compensation		0.9			—		—			44.0			—			—		44.0			—			44.0
Excess tax benefits from stock-based compensation		—			—		—			1.2			—			—		1.2			—			1.2
Foreign currency translation adjustments		—			—		—			—			8.8			—		8.8			—			8.8
Pension and post-retirement related adjustments, net of tax		—			—		—			—			(0.7	)		—		(0.7	)		—			(0.7	)
Interest rate swap, net of tax		—			—		—			—			4.2			—		4.2			—			4.2
Repurchases of common stock		(3.0	)		—		(128.3	)		—			—			—		(128.3	)		—			(128.3	)
Newly consolidated joint ventures		—			—		—			—			—			—		—			41.0			41.0
Distributions to noncontrolling interests		—			—		—			—			—			—		—			(107.2	)		(107.2	)
Contributions and advances from noncontrolling interests		—			—		—			—			—			—		—			7.6			7.6
Other transactions with noncontrolling interests		—			—		—			—			—			—		—			(0.5	)		(0.5	)
Net income including noncontrolling interests		—			—		—			—			—			287.9		287.9			98.3			386.2
Balances, December 31, 2010		81.9		$	0.9	$	(212.1	)	$	2,924.3		$	(36.9	)	$	1,441.0	$	4,117.2		$	83.8		$	4,201.0

See Notes to Consolidated Financial Statements

95

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Continued)

(In millions)

												Accumulated
									Additional			Other						Total URS
	Common Stock					Treasury			Paid-in			Comprehensive			Retained			Stockholders’			Noncontrolling			Total
	Shares			Amount		Stock			Capital			Income (Loss)			Earnings			Equity			Interests			Equity
Balances, December 31, 2010		81.9		$	0.9	$	(212.1	)	$	2,924.3		$	(36.9	)	$	1,441.0		$	4,117.2		$	83.8		$	4,201.0
Employee stock purchases and exercises of stock options		0.3			—		—			11.7			—			—			11.7			—			11.7
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards		(0.3	)		—		—			(15.3	)		—			—			(15.3	)		—			(15.3	)
Stock-based compensation		0.8			—		—			45.3			—			—			45.3			—			45.3
Excess tax benefits from stock-based compensation		—			—		—			0.8			—			—			0.8			—			0.8
Foreign currency translation adjustments		—			—		—			—			(11.2	)		—			(11.2	)		—			(11.2	)
Pension and post-retirement related adjustments, net of tax		—			—		—			—			(62.7	)		—			(62.7	)		—			(62.7	)
Repurchases of common stock		(6.0	)		—		(242.8	)		—			—			—			(242.8	)		—			(242.8	)
Distributions to noncontrolling interests		—			—		—			—			—			—			—			(111.7	)		(111.7	)
Contributions and advances from noncontrolling interests		—			—		—			—			—			—			—			6.9			6.9
Other transactions with noncontrolling interests		—			—		—			—			—			—			—			(0.3	)		(0.3	)
Net income (loss) including noncontrolling interests		—			—		—			—			—			(465.8	)		(465.8	)		128.5			(337.3	)
Balances, December 30, 2011		76.7		$	0.9	$	(454.9	)	$	2,966.8		$	(110.8	)	$	975.2		$	3,377.2		$	107.2		$	3,484.4

See Notes to Consolidated Financial Statements

96

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Continued)

(In millions)

												Accumulated
									Additional			Other						Total URS
	Common Stock					Treasury			Paid-in			Comprehensive			Retained			Stockholders’			Noncontrolling			Total
	Shares			Amount		Stock			Capital			Income (Loss)			Earnings			Equity			Interests			Equity
Balances, December 30, 2011		76.7		$	0.9	$	(454.9	)	$	2,966.8		$	(110.8	)	$	975.2		$	3,377.2		$	107.2		$	3,484.4
Employee stock purchases and exercises of stock options		0.3			—		—			8.9			—			—			8.9			—			8.9
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards		(0.4	)		—		—			(15.5	)		—			—			(15.5	)		—			(15.5	)
Stock-based compensation		1.2			—		—			43.6			—			—			43.6			—			43.6
Excess tax benefits from stock-based compensation		—			—		—			0.1			—			—			0.1			—			0.1
Foreign currency translation adjustments		—			—		—			—			24.8			—			24.8			—			24.8
Pension and post-retirement related adjustments, net of tax		—			—		—			—			(26.6	)		—			(26.6	)		—			(26.6	)
Loss on derivative instruments, net of tax		—			—		—			—			(0.6	)		—			(0.6	)		—			(0.6	)
Repurchases of common stock		(1.0	)		—		(40.0	)		—			—			—			(40.0	)		—			(40.0	)
Cash dividends declared		—			—		—			—			—			(61.4	)		(61.4	)		—			(61.4	)
Noncontrolling interests from an acquisition		—			—		—			—			—			—			—			2.0			2.0
Distributions to noncontrolling interests		—			—		—			—			—			—			—			(83.8	)		(83.8	)
Contributions and advances from noncontrolling interests		—			—		—			—			—			—			—			1.2			1.2
Other transactions with noncontrolling interests		—			—		—			—			—			—			—			0.1			0.1
Net income including noncontrolling interests		—			—		—			—			—			310.6			310.6			115.2			425.8
Balances, December 28, 2012		76.8		$	0.9	$	(494.9	)	$	3,003.9		$	(113.2	)	$	1,224.4		$	3,621.1		$	141.9		$	3,763.0

See Notes to Consolidated Financial Statements

97

URS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

	Year Ended
	December 28,			December 30,			December 31,
	2012			2011			2010
Cash flows from operating activities:
Net income (loss) including noncontrolling interests	$	425.8		$	(337.3	)	$	386.2
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization		132.4			82.1			84.3
Amortization of intangible assets		101.2			60.6			49.2
Amortization of debt issuance costs		2.6			5.8			9.2
Foreign currency gains related to foreign currency derivatives and intercompany loans		(0.5	)		—			—
Restructuring costs		—			3.3			10.6
Normal profit		(5.7	)		(2.7	)		1.2
Goodwill impairment		—			825.8			—
Loss on extinguishment of debt		—			2.9			—
Provision for doubtful accounts		6.6			2.8			6.7
Gain on disposal of property and equipment		(3.4	)		(8.9	)		—
Deferred income taxes		(16.6	)		(23.3	)		10.9
Stock-based compensation		43.6			45.3			44.0
Excess tax benefits from stock-based compensation		(0.1	)		(0.8	)		(1.2	)
Equity in income of unconsolidated joint ventures		(107.6	)		(132.2	)		(70.3	)
Dividends received from unconsolidated joint ventures		88.7			107.3			92.5
Changes in operating assets, liabilities and other, net of effects of business acquisitions:
Accounts receivable and costs and accrued earnings in excess of billings on contracts		(98.8	)		7.8			(14.0	)
Inventory		7.0			(11.9	)		1.1
Other current assets		(30.4	)		(7.1	)		28.7
Collections from (advances to) unconsolidated joint ventures		3.4			(0.2	)		(1.7	)
Accounts payable, accrued salaries and employee benefits, and other current liabilities		(13.6	)		(43.0	)		(67.6	)
Billings in excess of costs and accrued earnings on contracts		(23.2	)		19.2			(30.2	)
Other long-term liabilities		(10.6	)		13.0			22.5
Other long-term assets		(70.6	)		(102.6	)		(35.7	)
Total adjustments and changes		4.4			843.2			140.2
Net cash from operating activities		430.2			505.9			526.4
Cash flows from investing activities:
Payments for business acquisitions, net of cash acquired		(1,345.7	)		(282.1	)		(291.7	)
Changes in cash related to consolidation and/or deconsolidation of joint ventures		—			—			20.7
Proceeds from disposal of property and equipment		25.3			14.1			8.3
Payments in settlement of foreign currency forward contract		(1,260.6	)		—			—
Receipts in settlement of foreign currency forward contract		1,260.3			—			—
Investments in unconsolidated joint ventures		(4.4	)		(19.6	)		(6.0	)
Changes in restricted cash		3.9			7.0			(16.1	)
Capital expenditures, less equipment purchased through capital leases and equipment notes		(125.4	)		(67.5	)		(45.2	)
Maturity of short-term investments		—			—			30.2
Net cash from investing activities		(1,446.6	)		(348.1	)		(299.8	)

See Notes to Consolidated Financial Statements

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(In millions)

	Year Ended
	December 28,			December 30,			December 31,
	2012			2011			2010
Cash flows from financing activities:
Borrowings from long-term debt		998.9			700.0			—
Payments on long-term debt		(38.0	)		(632.6	)		(159.6	)
Borrowings from revolving line of credit		661.6			138.6			—
Payments on revolving line of credit		(583.6	)		(115.7	)		—
Net payments under foreign lines of credit and short-term notes		(20.5	)		(16.4	)		(7.6	)
Net change in overdrafts		54.5			(18.0	)		14.4
Payments on capital lease obligations		(14.6	)		(10.9	)		(7.5	)
Payments of debt issuance costs		(8.8	)		(3.9	)		—
Excess tax benefits from stock-based compensation		0.1			0.8			1.2
Proceeds from employee stock purchases and exercises of stock options		8.9			11.7			11.3
Distributions to noncontrolling interests		(83.8	)		(111.7	)		(107.2	)
Contributions and advances from noncontrolling interests		2.3			6.6			8.2
Dividends paid		(44.7	)		—			—
Repurchases of common stock		(40.0	)		(242.8	)		(128.3	)
Net cash from financing activities		892.3			(294.3	)		(375.1	)
Net change in cash and cash equivalents		(124.1	)		(136.5	)		(148.5	)
Effect of foreign exchange rate changes on cash and cash equivalents		2.6			(1.3	)		1.2
Cash and cash equivalents at beginning of period		436.0			573.8			721.1
Cash and cash equivalents at end of period	$	314.5		$	436.0		$	573.8
Supplemental information:
Interest paid	$	64.5		$	15.2		$	24.0
Taxes paid	$	150.6		$	177.3		$	79.3
Supplemental schedule of non-cash investing and financing activities:
Loan Notes issued and consideration for vested shares exercisable in connection with an acquisition	$	—		$	—		$	30.9
Equipment acquired with capital lease obligations and equipment note obligations	$	27.9		$	14.2		$	12.9
Purchase price adjustment and contingent consideration payable under acquisitions	$	—		$	7.9		$	—
Cash dividends declared but not paid	$	16.7		$	—		$	—

See Notes to Consolidated Financial Statements

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.  BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES

Overview

The terms “we,” “us,” and “our” used in these financial statements refer to URS Corporation and its consolidated subsidiaries unless otherwise indicated.  We are a leading international provider of engineering, construction and technical services.  We offer a broad range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients around the world.  We also are a United States (“U.S.”) federal government contractor in the areas of systems engineering and technical assistance, operations and maintenance, and information technology (“IT”) services.  Headquartered in San Francisco, we have more than 54,000 employees in a global network of offices and contract-specific job sites in more than 50 countries as of January 25, 2013.  We operate through four reporting segments:  the Infrastructure & Environment Division, the Federal Services Division, the Energy & Construction Division and the Oil & Gas Division.

Our fiscal year is the 52/53-week period ending on the Friday closest to December 31.

Principles of Consolidation and Basis of Presentation

Our consolidated financial statements include the financial position, results of operations and cash flows of URS Corporation and our majority-owned subsidiaries and joint ventures that are required to be consolidated.

We completed the acquisitions of Flint Energy Services Ltd. (“Flint”), Apptis Holdings, Inc. (“Apptis”), and Scott Wilson Group plc. (“Scott Wilson”) on May 14, 2012, June 1, 2011, and September 10, 2010, respectively.  The operations of Flint became our Oil & Gas Division.  The operating results of Flint, Apptis, and Scott Wilson from their acquisition dates through December 28, 2012 were included in our consolidated financial statements under the Oil & Gas, Federal Services, and Infrastructure & Environment Divisions, respectively.

Investments in unconsolidated joint ventures are accounted for using the equity method and are included as investments in and advances to unconsolidated joint ventures on our Consolidated Balance Sheets.  All significant intercompany transactions and accounts have been eliminated in consolidation.

Use of Estimates

The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the balance sheet dates, and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  On an ongoing basis, we review our estimates based on information that is currently available.  Changes in facts and circumstances may cause us to revise our estimates.

Consolidation of Variable Interest Entities

We participate in joint ventures, which include partnerships and partially-owned limited liability companies, to bid, negotiate and complete specific projects.  We are required to consolidate these joint ventures if we hold the majority voting interest or if we meet the criteria under the variable interest model as described below.

A variable interest entity (“VIE”) is an entity with one or more of the following characteristics (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns, or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity’s activities are on behalf of the investor.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Our VIEs may be funded through contributions, loans and/or advances from the joint venture partners or by advances and/or letters of credit provided by our clients.  Our VIEs may be directly governed, managed, operated and administered by the joint venture partners.  Others have no employees and, although these entities own and hold the contracts with the clients, the services required by the contracts are typically performed by the joint venture partners or by other subcontractors.

If we are determined to be the primary beneficiary of the VIE, we are required to consolidate it.  We are considered to be the primary beneficiary if we have the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE.  In determining whether we are the primary beneficiary, we take into consideration the following:

·   Identifying the significant activities and the parties that have the power to direct them;

·   Reviewing the governing board composition and participation ratio;

·   Determining the equity, profit and loss ratio;

·   Determining the management-sharing ratio;

·   Reviewing employment terms, including which joint venture partner provides the project manager; and

·   Reviewing the funding and operating agreements.

Examples of significant activities include the following:

·   Engineering services;

·   Procurement services;

·   Construction;

·   Construction management; and

·   Operations and maintenance services.

Based on the above, if we determine that the power to direct the significant activities is shared by two or more joint venture parties, then there is no primary beneficiary and no party consolidates the VIE.  In making the shared-power determination, we analyze the key contractual terms, governance, related party and de facto agency as they are defined in the accounting standard, and other arrangements to determine if the shared power exists.

As required by the accounting standard, we perform a quarterly re-assessment to determine whether we are the primary beneficiary.  This evaluation may result in consolidation of a previously unconsolidated joint venture or in deconsolidation of a previously consolidated joint venture.  See Note 6, “Joint Ventures,” for further information on our VIEs.

Revenue Recognition

We recognize revenues from engineering, construction and construction-related contracts using the percentage-of-completion method as project progress occurs.  Service-related contracts, including operations and maintenance services and a variety of technical assistance services, are accounted for using the proportionate performance method as project progress occurs.

Percentage of Completion.  Under the percentage-of-completion method, revenue is recognized as contract performance progresses.  We estimate the progress towards completion to determine the amount of revenue and profit to recognize.  We generally utilize a cost-to-cost approach in applying the percentage-of-completion method, where revenue is earned in proportion to total costs incurred, divided by total costs expected to be incurred.  Costs are generally determined from actual hours of labor effort expended at per-hour labor rates calculated using a labor dollar multiplier that includes direct labor costs and allocable overhead costs.  Direct non-labor costs are charged as incurred plus any mark-up permitted under the contract.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Under the percentage-of-completion method, recognition of profit is dependent upon the accuracy of a variety of estimates, including engineering progress, materials quantities, and achievement of milestones, incentives, penalty provisions, labor productivity, cost estimates and others.  Such estimates are based on various professional judgments we make with respect to those factors and are subject to change as the project proceeds and new information becomes available.

Proportional Performance.  Our service contracts, primarily performed by our Federal Services Division, are accounted for using the proportional performance method, under which revenue is recognized in proportion to the number of service activities performed, in proportion to the direct costs of performing the service activities, or evenly across the period of performance depending upon the nature of the services provided.

Revenues from all contracts may vary based on the actual number of labor hours worked and other actual contract costs incurred.  If actual labor hours and other contract costs exceed the original estimate agreed to by our client, we generally obtain a change order, contract modification or successfully prevail in a claim in order to receive and recognize additional revenues relating to the additional costs (see “Change Orders and Claims” below).

If estimated total costs on any contract indicate a loss, we charge the entire estimated loss to operations in the period the loss becomes known.  The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, incentive awards, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss or change in estimates are known and the loss can be reasonably estimated.  Such revisions could occur at any time and the effects may be material.

We have a history of making reasonably dependable estimates of the extent of progress towards completion, contract revenue and contract completion costs on our long-term engineering and construction contracts.  However, due to uncertainties inherent in the estimation process, it is possible that actual completion costs may vary from estimates.

Change Orders and Claims.  Change orders and/or claims occur when changes are experienced once contract performance is underway, and may arise under any of the contract types described below.

Change orders are modifications of an original contract that effectively change the existing provisions of the contract without adding new scope or terms.  Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work.  Either we or our clients may initiate change orders.  Client agreement as to the terms of change orders is, in many cases, reached prior to work commencing; however, sometimes circumstances require that work progress without obtaining client agreement.  Costs related to change orders are recognized as incurred.  Revenues attributable to change orders that are unapproved as to price or scope are recognized to the extent that costs have been incurred if the amounts can be reliably estimated and their realization is probable.  Revenues in excess of the costs attributable to change orders that are unapproved as to price or scope are recognized only when realization is assured beyond a reasonable doubt.  Change orders that are unapproved as to both price and scope are evaluated as claims.

Claims are amounts in excess of agreed contract prices that we seek to collect from our clients or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs.  Claims are included in total estimated contract revenues when the contract or other evidence provides a legal basis for the claim, when the additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of the deficiencies in the contract performance, when the costs associated with the claim are identifiable, and when the evidence supporting the claim is objective and verifiable.  Revenue on claims is recognized only to the extent that contract costs related to the claims have been incurred and when it is probable that the claim will result in a bona fide addition to contract value which can be reliably estimated.  No profit is recognized on claims until final settlement occurs.  As a result, costs may be recognized in one period while revenues may be recognized when client agreement is obtained or claims resolution occurs, which can be in subsequent periods.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

“At-risk” and “Agency” Contracts.  The amount of revenues we recognize also depends on whether the contract or project represents an at-risk or an agency relationship between the client and us.  Determination of the relationship is based on characteristics of the contract or the relationship with the client.  For at-risk relationships where we act as the principal to the transaction, the revenue and the costs of materials, services, payroll, benefits, and other costs are recognized at gross amounts.  For agency relationships, where we act as an agent for our client, only the fee revenue is recognized, meaning that direct project costs and the related reimbursement from the client are netted.  Revenues from agency contracts and collaborative arrangements were not a material part of revenues for any period presented.

In classifying contracts or projects as either at-risk or agency, we consider the following primary characteristics to be indicative of at-risk relationships: (i) we acquire the related goods and services using our procurement resources, (ii) we assume the risk of loss under the contract and (iii) we are responsible for insurance coverage, employee-related liabilities and the performance of subcontractors.

We consider the following primary characteristics to be indicative of agency relationships: (i) our client owns the work facilities utilized under the contract, (ii) we act as a procurement agent for goods and services acquired with client funds, (iii) our client is invoiced for our fees, (iv) our client is exposed to the risk of loss and maintains insurance coverage, and (v) our client is responsible for employee-related benefit plan liabilities and any remaining liabilities at the end of the contract.

Contract Types

Our contract types include cost-plus, target-price, fixed-price, and time-and-materials contracts.  Revenue recognition is determined based on the nature of the service provided, irrespective of the contract type, with engineering, construction and construction-related contracts accounted for under the percentage-of-completion method and service-related contracts accounted for under the proportional performance method.

Cost-Plus Contracts.  We enter into four major types of cost-plus contracts.  Revenue for the majority of our cost-plus contracts is recognized using the percentage-of-completion method:

Cost-Plus Fixed Fee.  Under cost-plus fixed fee contracts, we charge our clients for our costs, including both direct and indirect costs, plus a fixed negotiated fee.

Cost-Plus Fixed Rate.  Under our cost-plus fixed rate contracts, we charge clients for our direct costs plus negotiated rates based on our indirect costs.

Cost-Plus Award Fee.  Some cost-plus contracts provide for award fees or penalties based on performance criteria in lieu of a fixed fee or fixed rate.  Other contracts include a base fee component plus a performance-based award fee.  In addition, we may share award fees with subcontractors and/or our employees.  We accrue fee sharing as related award fee revenue is earned.  We take into consideration the award fee or penalty on contracts when estimating revenues and profit rates, and we record revenues related to the award fees when there is sufficient information to assess anticipated contract performance.  On contracts that represent higher than normal risk or technical difficulty, we defer all award fees until an award fee letter is received.  Once an award fee letter is received, the estimated or accrued fees are adjusted to the actual award amount.

Cost-Plus Incentive Fee.  Some of our cost-plus contracts provide for incentive fees based on performance against contractual milestones.  The amount of the incentive fees varies, depending on whether we achieve above-, at- or below-target results.  We recognize incentive fees revenues as milestones are achieved, assuming that we will achieve at-target results, unless our estimates indicate our cost at completion to be significantly above or below target.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Target-Price Contracts.  Under our target-price contracts, project costs are reimbursable.  Our fee is established against a target budget that is subject to changes in project circumstances and scope.  Should the project costs exceed the target budget within the agreed-upon scope, we generally degrade a portion of our fee or profit to mitigate the excess cost; however, the customer reimburses us for the costs that we incur if costs continue to escalate beyond our expected fee.  If the project costs are less than the target budget, we generally recover a portion of the project cost savings as additional fee or profit.  We recognize revenues on target-price contracts using the percentage-of-completion method.

Fixed-Price Contracts.  We enter into two major types of fixed-price contracts:

Firm Fixed-Price (“FFP”).  Under FFP contracts, our clients pay us an agreed fixed-amount negotiated in advance for a specified scope of work.  We generally recognize revenues on FFP contracts using the percentage-of-completion method.  If the nature or circumstances of the contract prevent us from preparing a reliable estimate at completion, we will delay profit recognition until adequate information about the contract’s progress becomes available.  Prior to completion, our recognized profit margins on any FFP contract depend on the accuracy of our estimates and will increase to the extent that our current estimates of aggregate actual costs are below amounts previously estimated.  Conversely, if our current estimated costs exceed prior estimates, our profit margins will decrease and we may realize a loss on a project.

Fixed-Price Per Unit (“FPPU”).  Under our FPPU contracts, clients pay us a set fee for each service or production transaction that we complete.  We recognize revenues under FPPU contracts as we complete the related service or production transactions for our clients generally using the proportional performance method.  Some of our FPPU contracts are subject to maximum contract values.

Time-and-Materials Contracts.  Under our time-and-materials contracts, we negotiate hourly billing rates and charge our clients based on the actual time that we spend on a project.  In addition, clients reimburse us for our actual out-of-pocket costs of materials and other direct incidental expenditures that we incur in connection with our performance under the contract.  The majority of our time-and-material contracts are subject to maximum contract values and, accordingly, revenues under these contracts are generally recognized under the percentage-of-completion method.  However, time-and-materials contracts that are service-related contracts are accounted for utilizing the proportional performance method.  Revenues on contracts that are not subject to maximum contract values are recognized based on the actual number of hours we spend on the projects plus any actual out-of-pocket costs of materials and other direct incidental expenditures that we incur on the projects.  Our time-and-materials contracts also generally include annual billing rate adjustment provisions.

Segmenting and Combining Contracts

Occasionally a contract may include several elements or phases, each of which was negotiated separately with our client and agreed to be performed without regard to the performance of others.  We follow the criteria set forth in the accounting guidance when combining and segmenting contracts.  When combining contracts, revenues and profits are earned and reported uniformly over the performance of the combined contracts.  When segmenting contracts, we assign revenues and costs to the different elements or phases to achieve different rates of profitability based on the relative value of each element or phase to the estimated contract revenues.  Values assigned to the segments are based on our normal historical prices and terms of such services to other clients.  Also, a group of contracts may be so closely related that they are, in effect, part of a single project with an overall profit margin.

Accounts Receivable and Costs and Accrued Earnings in Excess of Billings on Contracts

Accounts receivable in the accompanying Consolidated Balance Sheets are primarily comprised of amounts billed to clients for services already provided, but which have not yet been collected.  Occasionally, under the terms of specific contracts, we are permitted to submit invoices in advance of providing our services to our clients and, to the extent they have not been collected, these amounts are also included in accounts receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Costs and accrued earnings in excess of billings on contracts (also referred to as “Unbilled Accounts Receivable”) in the accompanying Consolidated Balance Sheets represent unbilled amounts earned and reimbursable under contracts.  These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of milestones or completion of the project.  Generally, such unbilled amounts will be billed and collected over the next twelve months.

Accounts receivable and costs and accrued earnings in excess of billings on contracts include certain amounts recognized related to unapproved change orders (amounts representing the value of proposed contract modifications, but which are unapproved as to either price or scope) and claims, (change orders that are unapproved as to both price and scope) that have not been collected and, in the case of balances included in costs and accrued earnings in excess of billings on contracts, may not be billable until an agreement or, in the case of claims, a settlement is reached.  Most of those balances are not material and are typically resolved in the ordinary course of business.

Billings in Excess of Costs and Accrued Earnings on Contracts

Billings in excess of costs and accrued earnings on contracts in the accompanying Consolidated Balance Sheets is comprised of cash collected from clients and billings to clients on contracts in advance of work performed, advance payments negotiated as a contract condition, estimated losses on uncompleted contracts, normal profit liabilities, project-related legal liabilities; and other project-related reserves.  The majority of the unearned project-related costs will be earned over the next twelve months.

We record provisions for estimated losses on uncompleted contracts in the period in which such losses become probable.  The cumulative effects of revisions to contract revenues and estimated completion costs are recorded in the accounting period in which the amounts become probable and can be reasonably estimated.  These revisions can include such items as the effects of change orders and claims, warranty claims, liquidated damages or other contractual penalties, adjustments for audit findings on U.S. or other government contracts and contract closeout settlements.

Receivable Allowances

We reduce our accounts receivable and costs and accrued earnings in excess of billings on contracts by estimating an allowance for amounts that may become uncollectible or unrealizable in the future.  We determine our estimated allowance for uncollectible amounts based on management’s judgments regarding our operating performance related to the adequacy of the services performed or products delivered, the status of change orders and claims, our experience settling change orders and claims and the financial condition of our clients, which may be dependent on the type of client and current economic conditions to which the client may be subject.

Classification of Current Assets and Liabilities

Our accounts receivable include retentions associated with long-term contracts, which are generally not billable until near or at the completion of the projects or milestones and/or delivery of services.  For contracts with terms that exceed one year, retentions are generally billed beyond a year from the service date.  Our Unbilled Accounts Receivable include amounts related to milestone payment clauses, which may provide for payments to be received beyond a year from the date the Unbilled Accounts Receivable are recognized.  Unbilled Accounts Receivable related to performance-based incentives that we do not expect to bill within twelve months of the balance sheet date are included in “Other long-term assets.”  Based on our historical experience, we generally consider the collection risk related to these amounts to be low.  When events or conditions indicate that the amounts outstanding may become uncollectible, an allowance is estimated and recorded.

Subcontractor payables, subcontractor retentions, and billings in excess of costs and accrued earnings on contracts each contain amounts that, depending on contract performance, resolution of U.S. government contract audits, negotiations, change orders, claims or changes in facts and circumstances, may not require payment within one year.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Accounts receivable – retentions represent amounts billed to clients for services performed that, by the underlying contract terms, will not be paid until the projects meet contractual milestones, or are at or near completion.  Correspondingly, subcontractors payable – retentions represent amounts billed to us by subcontractors for services performed that, by their underlying contract terms, do not require payment by us until the projects are at or near completion.

Accounts payable and subcontractors payable include our estimate of incurred but unbilled subcontractor costs.

Concentrations of Credit Risk

Our accounts receivable and costs and accrued earnings in excess of billings on contracts are potentially subject to concentrations of credit risk.  Our credit risk on accounts receivable is limited due to the large number of contracts for clients that comprise our customer base and their dispersion across different business and geographic areas.  We estimate and maintain an allowance for potential uncollectible accounts, and such estimates have historically been within management’s expectations.  See Note 4, “Accounts Receivable and Costs and Accrued Earnings in Excess of Billings on Contracts” for more details.  Our cash and cash equivalents are maintained in accounts held by major banks and financial institutions located primarily in North America, Europe and Asia Pacific.

Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid investments with maturities of 90 days or less at the date of purchase and include interest-bearing bank deposits and money market funds.  At December 28, 2012 and December 30, 2011, restricted cash balances were $17.1 million and $21.0 million, respectively.  These amounts were included in “Other current assets” on our Consolidated Balance Sheets.  For cash held by our consolidated joint ventures, see Note 6, “Joint Ventures.”

Derivative Instruments

We are exposed to the risk of changes in interest rates on our long-term debt.  Sometimes, we manage this risk through the use of derivative instruments.  All derivative financial instruments are recorded on the balance sheet at fair value.  At dates entered into, the derivatives hedge the variability in cash flows received or paid in connection with a recorded asset or liability.

Changes in the fair value of cash flow hedges are recorded in other comprehensive income until earnings are affected by the variability of cash flows of the hedged transactions.  We would discontinue hedge accounting prospectively when the derivatives are no longer effective in offsetting changes in cash flows of the hedged items, the derivatives are sold or terminated or it is no longer probable that the forecasted transactions will occur.  Cash flows resulting from derivatives that are accounted for as hedges may be classified in the same category as the cash flows from the items being hedged.

We use derivative instruments only for risk management purposes and not for speculation or trading.  The amount, maturity, and other specifics of the hedge, if any, are determined by the specific derivative instrument.  If a derivative contract is entered into, we either determine that it is an economic hedge or we designate the derivative as a cash flow or fair value hedge.  We formally document all relationships between hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking various hedged transactions.  For those derivatives designated as cash flow or fair value hedges, we formally assess, both at the derivatives’ inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the hedged items.  The ineffective portion of hedging transactions is recognized in current income.

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(Continued)

Fair Value Measurement

We determine the fair values of our financial instruments, including debt instruments and pension and post-retirement plan assets based on inputs or assumptions that market participants would use in pricing an asset or a liability.  We categorize our instruments using a valuation hierarchy for disclosure of the inputs used to measure fair value.  This hierarchy prioritizes the inputs into three broad levels as follows:  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value.  The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair values based on their short-term nature.

Our long-term debt includes both floating-rate and fixed rate instruments.  See Note 11, “Fair Value of Debt Instruments and Derivative Instruments,” for additional disclosure.

Our fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.  Although we believe our valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.

Inventory

Inventory is stated at cost (first-in, first-out or average cost), but not in excess of net realizable value.  Net realizable value represents the estimated selling price for inventory less the estimated costs of completion and the estimated costs associated with the sale.  The cost of inventory includes expenditures incurred in acquiring the inventory, production or conversion costs, and other costs incurred in bringing the inventory items to their existing location and condition.  For fabricated inventory and work in progress, cost includes overhead allocated based on normal operating capacity.  A write down for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, future sales expectations and salvage value.  See Note 5, “Inventory,” for additional disclosure.

Property and Equipment

Property and equipment are stated at cost.  In the year assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts and any gain or loss on disposal is reflected in the Consolidated Statement of Operations.  Depreciation is provided on the straight-line and the declining methods using estimated useful lives less residual value.  Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less.  We capitalize our repairs- and maintenance-related costs that extend the estimated useful lives of property and equipment; otherwise, repairs- and maintenance-related costs are expensed.  Whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable, we compare the carrying value to the fair value, which is measured using the prices in active markets for similar assets, and recognize the difference as an impairment loss.  See Note 7, “Property and Equipment,” for additional disclosure.

Internal-Use Computer Software

We expense or capitalize costs associated with the development of internal-use software as follows:

Preliminary Project Stage:  Both internal and external costs incurred during this stage are expensed as incurred.

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Application Development Stage:  Both internal and external costs incurred to purchase and develop computer software are capitalized after the preliminary project stage is completed and management authorizes the computer software project.  However, training costs and the process of data conversion from the old system to the new system, which includes purging or cleansing of existing data, reconciliation or balancing of old data to the converted data in the new system, are expensed as incurred.

Post-Implementation/Operation Stage:  All training costs and maintenance costs incurred during this stage are expensed as incurred.

Costs of upgrades and enhancements are capitalized if the expenditures will result in adding functionality to the software.  Capitalized software costs are depreciated using the straight-line method over the estimated useful life of the related software, which may be up to ten years.

Goodwill and Intangible Assets

We amortize our intangible assets based on the period over which the contractual or economic benefits of the intangible assets are expected to be realized.  We assess our intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable.  Examples of such events are i) significant adverse changes in its market value, useful life, physical condition, or in the business climate that could affect its value; ii) a current-period operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the intangible asset; or iii) a current expectation that, more likely than not, the intangible asset will be sold or otherwise disposed of before the end of its previously estimated useful life.

Goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed.  We assess our goodwill for impairment at least annually as of the end of the first month following our September reporting period or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

We believe the methodology that we use to review impairment of goodwill, which includes a significant amount of judgment and estimates, provides us with a reasonable basis to determine whether impairment has occurred.  However, many of the factors employed in determining whether our goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods.  These changes could result in future impairments.

Goodwill impairment reviews involve a two-step process.  The first step is a comparison of each reporting unit’s fair value to its carrying value.  We estimate fair value using discounted cash flow analyses, referred to as the income approach.  The income approach uses a reporting unit’s projection of estimated cash flows and discounts those back to the present using a weighted-average cost of capital that reflects current market conditions.  To arrive at our cash flow projections, we consider estimates of economic and market activity over a projection period of ten years, management’s expectations of growth rates in revenues, costs, estimates of future expected changes in operating margins and capital expenditures.  Other significant estimates and assumptions include long-term growth rates and changes in future working capital requirements.

We also consider indications obtained from the market approach.  We applied market multiples derived from stock market prices of companies that are engaged in the same or similar lines of business as our reporting units and that are actively traded on a free and open market, or applied market multiples derived from transactions of significant interests in companies engaged in the same or similar lines of business as our reporting units, to the corresponding measure of financial performance for our reporting units produces estimates of value at the noncontrolling marketable level.

In reaching our final estimate of value, we considered the fair values derived from using both the income and market approaches.  We gave primary weight to the income approach because it was deemed to be the most applicable.

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When performing our impairment analysis, we also reconcile the sum of the fair values of our reporting units with our market capitalization to determine if the sum reasonably reconciles with the external market indicators.  If our reconciliation indicates a significant difference between our external market capitalization and the sum of the fair values of our reporting units, we review and adjust the assumptions employed in our analysis, and examine if the implied control premium is reasonable in light of current market conditions.

If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment.  The amount of impairment is determined by comparing the implied fair value of the reporting unit’s goodwill to the carrying value of the goodwill calculated in the same manner as if the reporting unit were being acquired in a business combination.  If the implied fair value of goodwill is less than the recorded goodwill, we would record an impairment charge for the difference.

There are several instances that may cause us to further test our goodwill for impairment between the annual testing periods including:  (i) continued deterioration of market and economic conditions that may adversely impact our ability to meet our projected results; (ii) declines in our stock price caused by continued volatility in the financial markets that may result in increases in our weighted-average cost of capital or other inputs to our goodwill assessment; and (iii) the occurrence of events that may reduce the fair value of a reporting unit below its carrying amount, such as the sale of a significant portion of one or more of our reporting units.

If our goodwill were impaired, we would be required to record a non-cash charge that could have a material adverse effect on our consolidated financial statements.

See Note 9, “Goodwill and Intangible Assets,” for more disclosure about our test for goodwill impairment.

Self-insurance Reserves

Self-insurance reserves represent reserves established as a result of insurance programs under which we self-insure portions of our business risks.  We carry substantial premium-paid, traditional risk transfer insurance for our various business risks; however, we self-insure and establish reserves for the retentions on workers’ compensation insurance, general liability, automobile liability, and professional errors and omissions liability.

Foreign Currency Translation

We determine the functional currency of our international operating entities based upon the currency of the primary environment in which they operate.  Where the functional currency is not the U.S. dollar, translation of assets and liabilities to U.S. dollars is based on exchange rates at the balance sheet date.  Translation of revenue and expenses to U.S. dollars is based on the average rate during the period.  Foreign currency differences arising from transactions denominated in currencies other than the functional currency, such as selling services or purchasing materials, results in transaction gains or losses, and are generally included in results of operations.

Foreign currency differences arising from the translation of intercompany loans from a foreign currency into the functional currency of an entity, which are of a long-term investment nature (that is, settlement is not planned or anticipated in the foreseeable future) are recorded in “Accumulated other comprehensive income (loss)” on our Consolidated Balance Sheets.  Foreign currency differences arising from the translation of other intercompany loans are recorded in “Other income (expense)” on our Consolidated Statements of Operations.

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Income Taxes

We use the asset and liability approach for financial accounting and reporting for income taxes.  We file income, franchise, gross receipts and similar tax returns in many jurisdictions.  Our tax returns are subject to audit by the Internal Revenue Service, most states in the U.S., and by various government agencies representing many jurisdictions outside the U.S.  We estimate and provide for additional income taxes that may be assessed by the various taxing authorities.  Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Income tax expense is the amount of tax payable for the period plus or minus the change in deferred tax assets and liabilities during the period.  See Note 13, “Income Taxes,” for additional disclosure.

Valuation allowances based on our judgments and estimates are established when necessary to reduce deferred tax assets to the amount expected to be realized and based on expected future operating results and available tax alternatives.  Our estimates are based on facts and circumstances in existence as well as interpretations of existing tax regulations and laws applied to the facts and circumstances.  Management believes that realization of deferred tax assets in excess of the valuation allowance is more likely than not.

Pension Plans and Post-retirement Benefits

We account for our defined benefit pension plans and post-retirement benefits using actuarial valuations that are based on assumptions, including discount rates, long-term rates of return on plan assets, and rates of change in participant compensation levels.  We evaluate the funded status of each of our defined benefit pension plans and post-retirement benefit plans using these assumptions, consider applicable regulatory requirements, tax deductibility, reporting considerations and other relevant factors, and thereby, determine the appropriate funding level for each period.  The discount rate used to calculate the present value of the pension and post-retirement benefit obligations is assessed at least annually.  The discount rate represents the rate inherent in the price at which the plans’ obligations are intended to be settled at the measurement date.  See Note 14, “Employee Retirement and Post-Retirement Benefit Plans,” for additional disclosure.

Noncontrolling interests

Noncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements.

Business Combinations

We account for business combinations under the purchase accounting method.  The cost of an acquired company is assigned to the tangible and intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition.  The determination of fair values of assets and liabilities acquired requires us to make estimates and use valuation techniques when market value is not readily available.  Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill.  The transaction costs associated with business combinations are expensed as they are incurred.  See Note 8, “Acquisitions,” for more information.

Reclassifications

We made reclassifications to the prior year’s financial statements to conform them to the current period’s presentation.  These reclassifications have no effect on our consolidated net assets or net cash flows.  In particular, we reclassified from “Costs and accrued earnings in excess of billings on contracts” to “Other long-term assets” those unbilled receivables related to performance-based incentives that we do not expect to bill within twelve months of the balance sheet date.

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NOTE 2.  ADOPTED AND OTHER RECENTLY ISSUED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS

An accounting standard update related to goodwill impairment testing was issued.  The update provides companies with the option to proceed directly to the first step of the two-step goodwill impairment test or perform a qualitative assessment to first assess whether the fair value of a reporting unit is less than its carrying amount, referred to as “step zero.”  If an entity determines it is more likely than not that the fair value of the reporting unit is more than its carrying amount, then performing the two-step impairment test is unnecessary.  The standard became effective for us beginning with our first interim period of fiscal year 2012.  The adoption of the standard did not have a material impact on our consolidated financial statements.

An accounting standard related to the presentation of other comprehensive income was issued to increase the prominence of items reported in other comprehensive income.  One portion of the standard requires, among other disclosures, the components of net income and the components of other comprehensive income to be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  This portion of the standard was effective for us beginning with our first interim period of fiscal year 2012.  However, because we have historically presented the components of net income and the components of other comprehensive income in two separate but consecutive statements, the adoption of this standard did not have a material impact on our consolidated financial statements.

An amendment to the remaining portion of this standard was recently issued.  It requires public entities to provide information about amounts reclassified out of accumulated other comprehensive income by component.  In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income and, in some cases, cross-references to related footnote disclosures.  This portion of the standard is effective for us beginning our first interim period in fiscal year 2013.  We currently do not expect that the adoption of this portion of the standard will have a material impact on our consolidated financial statements.

An accounting standard update regarding fair value measurement was issued to conform the definition of fair value and common requirements for measurement of and disclosure about fair value under U.S. generally accepted accounting principles (“GAAP”) and International Financial Reporting Standards.  The standard also clarifies the application of existing fair value measurement requirements and expands the disclosure requirements for fair value measurements that are estimated using significant unobservable Level 3 inputs.  The standard update was effective for us beginning with our first interim period of fiscal year 2012.  The adoption of this standard did not have a material impact on our consolidated financial statements.

An accounting standard update was issued related to new disclosures on offsetting assets and liabilities of financial and derivative instruments.  The amendments require the disclosure of gross asset and liability amounts, amounts offset on the balance sheet and amounts subject to the offsetting requirements, but not offset on the balance sheet.  This standard does not amend the existing guidance on when it is appropriate to offset.  An amendment to this standard was subsequently issued to clarify the intended scope of the disclosures.  It applies to derivatives, repurchase agreements, and securities lending transactions that are either offset in accordance with Topic 815, Derivatives and Hedging or subject to an enforceable master netting arrangement or similar agreement.  The amended standard update is effective for us beginning with our first interim period in fiscal year 2013.  We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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NOTE 3.  EARNINGS PER SHARE

In our computation of diluted earnings per share (“EPS”), we exclude the potential shares related to stock options that are issued and unexercised where the exercise price exceeds the average market price of our common stock during the period.  We also exclude nonvested restricted stock awards and units that have an anti-dilutive effect on EPS or that currently have not met performance conditions.

The following table summarizes the components of weighted-average common shares outstanding for both basic and diluted EPS:

	Year Ended
	December 28,		December 30,		December 31,
(In millions)	2012		2011		2010
Weighted-average common stock shares outstanding (1)		74.3		77.3		81.0
Effect of dilutive stock options, restricted stock awards and units and employee stock purchase plan shares (2)		0.2		—		0.3
Weighted-average common stock outstanding – Diluted		74.5		77.3		81.3

(1)   Weighted-average shares of common stock outstanding is net of treasury stock.

(2)   No dilution was applied to our basic weighted-average shares outstanding for the year ended December 30, 2011 due to a goodwill impairment charge that resulted in a net loss for the year.

	December 28,		December 30,		December 31,
(In millions)	2012		2011		2010
Anti-dilutive equity awards not included above		1.1		1.0		0.9

NOTE 4.  ACCOUNTS RECEIVABLE AND COSTS AND ACCRUED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS

The following table summarizes the components of our accounts receivable and Unbilled Accounts Receivable with the U.S. federal government and with other customers as of December 28, 2012 and December 30, 2011:

	December 28,			December 30,
(In millions)	2012			2011
Accounts receivable:
U.S. federal government	$	376.2		$	391.2
Others		1,178.6			723.5
Total accounts receivable	$	1,554.8		$	1,114.7
Unbilled Accounts Receivable:
U.S. federal government	$	892.7		$	758.8
Others		756.5			558.2
Total		1,649.2			1,317.0
Less:  Amounts included in Other long-term assets		(264.9	)		(185.0	)
Unbilled Accounts Receivable	$	1,384.3		$	1,132.0

As of December 28, 2012 and December 30, 2011, $264.9 million and $185.0 million, respectively, of Unbilled Accounts Receivable are not expected to become billable within twelve months of the balance sheet date and, as a result, are included as a component of “Other long-term assets.”

As of December 28, 2012 and December 30, 2011, we had financing receivables with contractual terms in excess of one year of $121.4 million and $78.1 million, respectively.

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NOTE 5.  INVENTORY

The table below presents the components of inventory:

	December 28,		December 30,
(In millions)	2012		2011
Raw materials	$	14.2	$	2.7
Work in progress		9.8		16.8
Finished goods		24.9		—
Supplies		12.6		—
Total	$	61.5	$	19.5

NOTE 6.  JOINT VENTURES

The following are examples of activities currently being performed by our significant consolidated and unconsolidated joint ventures:

·   Engineering, procurement and construction of a concrete dam;

·   Liquid waste management services, including the decontamination of a former nuclear fuel reprocessing facility and nuclear hazardous waste processing;

·   Management of ongoing tank cleanup effort, including retrieving, treating, storing and disposing of nuclear waste that is stored at tank farms;

·   Management and operation services, including commercial operations, decontamination, decommissioning, and waste management of a nuclear facility in the United Kingdom (“U.K.”); and

·   Operations, maintenance, asset management services to the Canadian energy sector.

In accordance with the current consolidation standard, we analyzed all of our joint ventures and classified them into two groups:

·   Joint ventures that must be consolidated because they are either not VIEs and we hold the majority voting interest, or because they are VIEs of which we are the primary beneficiary; and

·   Joint ventures that do not need to be consolidated because they are either not VIEs and we do not hold a majority voting interest, or because they are VIEs of which we are not the primary beneficiary.

We perform a quarterly review of our joint ventures to determine whether there were any changes in the status of the VIEs or changes to the primary beneficiary designation of each VIE.  We determined that no such changes occurred during the year ended December 28, 2012.

In the table below, we have aggregated financial information relating to our VIEs because their nature and risk and reward characteristics are similar.  None of our current joint ventures that meets the characteristics of a VIE is individually significant to our consolidated financial statements.

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Consolidated Joint Ventures

The following table presents the total assets and liabilities of our consolidated joint ventures:

	December 28,		December 30,
(In millions)	2012		2011
Cash and cash equivalents	$	80.1	$	91.4
Net accounts receivable		282.2		246.8
Other current assets		2.9		1.5
Noncurrent assets		143.3		103.4
Total assets	$	508.5	$	443.1
Accounts and subcontractors payable	$	185.0	$	151.9
Billings in excess of costs and accrued earnings on contracts		8.7		35.2
Accrued expenses and other		40.0		30.6
Noncurrent liabilities		22.7		15.2
Total liabilities		256.4		232.9
Total URS equity		110.2		103.0
Noncontrolling interests		141.9		107.2
Total owners’ equity		252.1		210.2
Total liabilities and owners’ equity	$	508.5	$	443.1

Total revenues of the consolidated joint ventures were $1.6 billion, $1.7 billion, and $1.7 billion for the years ended December 28, 2012, December 30, 2011, and December 31, 2010, respectively.

The assets of our consolidated joint ventures are restricted for use only by the particular joint venture and are not available for our general operations.

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Unconsolidated Joint Ventures

We use the equity method of accounting for our unconsolidated joint ventures.  Under the equity method, we recognize our proportionate share of the net earnings of these joint ventures as a single line item under “Equity in income of unconsolidated joint ventures” in our Consolidated Statements of Operations.

The table below presents financial information, derived from the most recent financial statements provided to us, in aggregate, for our unconsolidated joint ventures:

(In millions)	Unconsolidated VIEs
December 28, 2012
Current assets	$	594.1
Noncurrent assets	$	23.8
Current liabilities	$	372.5
Noncurrent liabilities	$	7.8
December 30, 2011
Current assets	$	457.6
Noncurrent assets	$	8.8
Current liabilities	$	288.1
Noncurrent liabilities	$	0.1
For the year ended December 28, 2012 (1)
Revenues	$	1,662.2
Cost of revenues	$	(1,440.6)
Income from continuing operations before tax	$	221.6
Net income	$	206.0
For the year ended December 30, 2011 (1, 2)
Revenues	$	1,498.0
Cost of revenues	$	(1,201.5)
Income from continuing operations before tax	$	296.5
Net income	$	274.7
For the year ended December 31, 2010 (1, 2)
Revenues	$	1,409.7
Cost of revenues	$	(1,225.2)
Income from continuing operations before tax	$	184.5
Net income	$	169.6

(1)   Income from unconsolidated U.S. joint ventures is generally not taxable in most tax jurisdictions in the U.S.  The tax expenses on our other unconsolidated joint ventures are primarily related to foreign taxes.

(2)   In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California.  The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders.  As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010.  During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

For the years ended December 28, 2012, December 30, 2011, and December 31, 2010, we received $88.7 million, $107.3 million, and $92.5 million, respectively, of distributions from unconsolidated joint ventures.

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Maximum Exposure to Loss

In addition to potential losses arising out of the carrying values of the assets and liabilities of our unconsolidated joint ventures, our maximum exposure to loss also includes performance assurances and guarantees we sometimes provide to clients on behalf of joint ventures that we do not directly control.  We enter into these guarantees primarily to support the contractual obligations associated with the joint ventures’ projects.  The potential payment amount of an outstanding performance guarantee is typically the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts.  However, the nature of these costs are such that we are not able to estimate amounts that may be required to be paid in excess of estimated costs to complete contracts and, accordingly, the exposure to loss as a result of these performance guarantees cannot be calculated.

NOTE 7.  PROPERTY AND EQUIPMENT

Our property and equipment consisted of the following:

	December 28,			December 30,
(In millions)	2012			2011
Construction and mining equipment	$	266.4		$	95.3
Computer software		219.5			186.3
Computer hardware		198.2			186.8
Vehicles and automotive equipment		172.2			7.7
Leasehold improvements		130.1			109.0
Land and buildings		114.1			9.2
Furniture and fixtures		97.7			91.5
Other equipment		72.4			70.8
Construction in progress		15.6			0.2
		1,286.2			756.8
Accumulated depreciation and amortization		(598.7	)		(487.4	)
Property and equipment at cost, net (1)	$	687.5		$	269.4

(1)   The unamortized computer software costs were $71.1 million and $60.8 million, respectively, as of December 28, 2012 and December 30, 2011.  The increase in property and equipment from December 30, 2011 to December 28, 2012 was due primarily to the assets acquired as part of the Flint acquisition on May 14, 2012.

Property and equipment was depreciated by using the following estimated useful lives:

	Estimated Useful Lives
Computer software and hardware and other equipment	3 – 10 years
Vehicles and automotive equipment	3 – 12 years
Construction and mining equipment	3 – 15 years
Furniture and fixtures	3 – 10 years
Leasehold improvements (1)	1 – 20 years
Buildings	10 – 45 years

(1)   Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less.

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NOTE 8.  ACQUISITIONS

Flint Acquisition

On May 14, 2012, we acquired the outstanding common shares of Flint for C$25.00 per share in cash, or C$1.24 billion (US$1.24 billion based on the exchange rate on the date of acquisition) and paid $110.3 million of Flint’s debt prior to the closing of the transaction in exchange for a promissory note from Flint.  On the date of acquisition, Flint had outstanding Canadian senior notes with a face value of C$175.0 million (US$175.0 million), in addition to $31.6 million of other indebtedness.  Flint provides construction and maintenance services to clients in the oil and gas industry.This acquisition expanded our presence in the oil and gas market sector, most notably in the North American unconventional oil and gas segments of this market.  Flint joined URS as our new Oil & Gas Division and, at the date of acquisition, had approximately 11,000 employees with a network of approximately 80 office locations in North America.  Our condensed consolidated financial statements include the operating results of Flint after the date of acquisition, which are included as the results of our Oil & Gas Division.

The following table presents a preliminary allocation of Flint’s identifiable assets acquired and liabilities assumed based on the estimates of their fair values as of the acquisition date.  These estimates are subject to revision, which may result in adjustments to the values presented below.  We expect to finalize these amounts within 12 months from the acquisition date.  We do not expect any adjustments to be material.

Preliminary allocation of purchase price:
(In millions)
Identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	$	4
Trade and other receivables		544
Inventory		61
Other current assets		32
Investments in and advances to unconsolidated joint ventures		147
Property and equipment		420
Other long-term assets		10
Identifiable intangible assets:
Customer relationships, contracts and backlog		159
Trade names		94
Other		13
Total amount allocated to identifiable intangible assets		266
Current liabilities		(244)
Net deferred tax liabilities		(77)
Long-term debt		(236)
Other long-term liabilities		(31)
Total identifiable net assets acquired		896
Goodwill		456
Total purchase price	$	1,352

Intangible assets.  Intangible assets include customer relationships, contracts and backlog, trade name and other intangible assets associated with the Flint acquisition.  For the year ended December 28, 2012, we recorded $34.1 million of amortization of intangible assets.

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Customer relationships represent existing contracts and the underlying customer relationships and backlog.  Customer relationships have estimated useful lives ranging from one to 13 years and are amortized based on the period over which the economic benefits of the intangible assets are expected to be realized.

Trade names represent the fair values of the acquired trade names and trademarks.  The estimated useful lives of the trade names are 40 years.  Other intangible assets represent the fair values of the existing non-compete agreements, supply contract agreement, and patents, which have estimated useful lives ranging from one to 13 years.  We amortize the fair values of these intangible assets based on the period over which the economic benefits of the intangible assets are expected to be realized.

Goodwill.  Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets.  The factors that contributed to the recognition of goodwill from the acquisition of Flint include acquiring a workforce with capabilities in the Oil & Gas market and cost savings opportunities.  This acquisition generated $456 million of goodwill, which is included in our Oil & Gas Division.  None of the total acquired goodwill is expected to be tax deductible.

Investments in and advances to unconsolidated joint ventures.  As a result of the Flint acquisition, we hold a 50% voting and economic interest in a joint venture which provides operations, maintenance, asset management and project management services to the Canadian energy sector.  The fair value of our investment in this joint venture at the acquisition date was higher than the underlying equity interest.  This difference of $128.5million includes $38.0 million representing intangible assets, and the remaining amount representing goodwill.  The intangible assets are being amortized, as a reduction to earnings against the equity in income of this unconsolidated joint venture, over a period ranging from three to 40 years.  For the year ended December 28, 2012, amortization of these intangible assets was $5.9 million.

Acquisition-related expenses.  In connection with the acquisition of Flint, we recognized $16.1 million for the year ended December 28, 2012 in “Acquisition-related expenses” on our Consolidated Statements of Operations.

The acquisition-related expenses consisted of investment banking, legal, tax and accounting fees, and other external costs directly related to the acquisition.

Flint’s revenues and operating income included in the Consolidated Statement of Operations for the year ended December 28, 2012 from the May 14, 2012 acquisition date to the end of the year amounted to $1.5 billion and $61.2million, respectively.

Pro forma results.  The unaudited financial information in the table below summarizes the combined results of the operations of URS Corporation and Flint for the years ended December 28, 2012 and December 30, 2011, on a pro forma basis, as though the companies had been combined as of January 1, 2011, the beginning of the first period presented.  The pro forma financial information includes the accounting effects of the business combination, including adjustments to the amortization of intangible assets, depreciation of property, plant and equipment, interest expense, adjustments to conform to U.S. GAAP, new compensation agreements, and foreign currency gains or losses arising from internal financing arrangements.  The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at January 1, 2011 nor should it be taken as indicative of our future consolidated results of operations.

	Year Ended
(In millions, except per share data)	December 28, 2012		December 30, 2011
Revenues	$	11,785.8	$	11,128.7
Net income (loss) including noncontrolling interests	$	409.1	$	(429.8	)
Net income (loss) attributable to URS	$	292.9	$	(558.3	)
Basic EPS	$	3.94	$	(7.22	)
Diluted EPS	$	3.93	$	(7.22	)

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The table below shows the material pre-tax, nonrecurring adjustment in the pro forma financial information for the years ended December 28, 2012 and December 30, 2011:

Pre-tax, nonrecurring adjustment (In millions)	Year Ended			Year Ended
	December 28, 2012			December 30, 2011 (1)
Acquisition-related expenses		$	27.7		$	(27.5	)

(1)   Included in the pro forma results for the year ended December 30, 2011 is a nonrecurring adjustment related to URS and Flint acquisition-related expenses.  These expenses were included in the fiscal year 2011 pro forma results as if the acquisition occurred at the beginning of that fiscal year.

Apptis Acquisition

On June 1, 2011, we acquired Apptis, for a purchase price of approximately $283 million.  Apptis provides IT services to the U.S. federal government.  The addition of Apptis expands our capabilities in the federal IT market.

For fiscal year 2011, our consolidated financial statements include the operating results of Apptis, which are included under our Federal Services Division, from the date of acquisition through December 30, 2011.  Pro forma results of Apptis have not been presented because the effect of this acquisition is not material to our consolidated financial results.

The following table presents allocations of Apptis’ identifiable assets acquired and liabilities assumed based on the estimate of its fair value as of the acquisition date:

Allocation of purchase price:
(In millions)	Apptis
Identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	$	18
Trade and other receivables		60
Other current assets		8
Property and equipment		20
Other long-term assets		10
Identifiable intangible assets:
Customer relationships, contracts and backlog		60
Trade name and other		4
Total amount allocated to identifiable intangible assets		64
Current liabilities		(76)
Net deferred tax liabilities		(5)
Long-term liabilities		(16)
Total identifiable net assets acquired		83
Goodwill		200
Total purchase price	$	283

Intangible assets.  Intangible assets include customer relationships, contracts and backlog, trade name and other.  Customer relationships represent existing contracts and the underlying customer relationships and backlog.  We amortize the fair values of these assets based on the period over which the economic benefits of the intangible assets are expected to be realized.  Trade name and other intangible assets are amortized using the straight-line method over their estimated useful lives.

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Goodwill.  Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets.

The factors that contributed to the recognition of goodwill from the acquisition of Apptis include acquiring a workforce with capabilities in the federal IT market and cost savings opportunities.  This acquisition generated $200 million of goodwill, which is included in our Federal Services Division.  Of the total acquired goodwill, approximately $64 million is expected to be tax deductible.

Acquisition-related expenses.  In connection with this acquisition, we recognized $1.0 million of expenses for the year ended December 30, 2011, in “Acquisition-related expenses” on our Consolidated Statements of Operations.  These expenses included legal fees, bank fees, consultation fees, travel expenses, and other miscellaneous direct and incremental administrative expenses associated with this acquisition.

NOTE 9.  GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following tables present the changes in goodwill allocated to our reportable segments and reporting units from December 31, 2010 to December 28, 2012:

(In millions)	Goodwill Balance as of December 31, 2010		Acquisitions		Goodwill Impairment			Other Adjustments (1)			Goodwill Balance as of December 30, 2011
Infrastructure & Environment Operating Segment	$	754.6	$	12.2	$	—		$	(8.7	)	$	758.1
Federal Services Operating Segment		854.8		202.1		(348.3	)		—			708.6
Within the Energy & Construction Operating Segment:
Global Management and Operations Services Group		565.4		—		(160.0	)		—			405.4
Civil Construction & Mining Group		293.9		—		(81.6	)		—			212.3
Industrial/Process Group		189.4		—		(71.4	)		—			118.0
Power Group		735.1		—		(164.5	)		—			570.6
Total Energy & Construction Operating Segement		1,783.8		—		(477.5	)		—			1,306.3
Total	$	3,393.2	$	214.3	$	(825.8	)	$	(8.7	)	$	2,773.0

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(In millions)	Goodwill Balance as of December 30, 2011		Acquisitions		Goodwill Impairment		Other Adjustments (1)		Goodwill Balance as of December 28, 2012
Infrastructure & Environment Operating Segment	$	758.1	$	—	$	—	$	14.8	$	772.9
Federal Services Operating Segment		708.6		—		—		1.7		710.3
Within the Energy & Construction Operating Segment:
Global Management and Operations Services Group		405.4		—		—		—		405.4
Civil Construction & Mining Group		212.3		—		—		—		212.3
Industrial/Process Group		118.0		—		—		—		118.0
Power Group		570.6		—		—		—		570.6
Total Energy & Construction Operating Segement		1,306.3		—		—		—		1,306.3
Oil & Gas Operating Segment		—		456.3		—		1.3		457.6
Total	$	2,773.0	$	456.3	$	—	$	17.8	$	3,247.1

(1)   For the year ended December 30, 2011, “Other Adjustments” include an adjustment for the final allocation of our purchase price of Scott Wilson of $5.3 million, an adjustment resulting from the sale of a business of $2.2 million, and an adjustment for foreign currency translation of $1.2 million.  For the year ended December 28, 2012, “Other adjustments” include an adjustment for foreign currency translation of $16.1 million, and an adjustment for the final allocation of our purchase price of Apptis of $1.7 million.

The net change in the carrying amount of goodwill for the year ended December 28, 2012 was primarily due to our acquisition of Flint.  See Note 8, “Acquisitions,” for more information regarding our acquisition of Flint.

The net change in the carrying amount of goodwill for the year ended December 30, 2011 was primarily due to the following:

·   Our acquisitions of Apptis and two small engineering companies.  See Note 8, “Acquisitions,” for more information regarding our acquisition of Apptis.

·   A goodwill impairment charge of $825.8 million for the year ended December 30, 2011.  See “Goodwill Impairment Review” below for a more detailed discussion.

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Goodwill Impairment Review

We have identified seven reporting units.  In determining our reporting units, we considered (i) whether an operating segment or a component of an operating segment is a business, (ii) whether discrete financial information is available, (iii) whether the financial information is regularly reviewed by management of the operating segment, and (iv) how the operations are managed or how an acquired entity is integrated in the business operations.  During our fiscal year 2012, we added a new division resulting from the acquisition of Flint and concluded that the following are our reporting units:

·   The Infrastructure & Environment Operating Segment (the “IE reporting unit”)

·   The Federal Services Operating Segment

·   Within the Energy & Construction Operating Segment:

o   Global Management and Operations Services Group

o   Civil Construction and Mining Group

o   Industrial/Process Group

o   Power Group

·   The Oil & Gas Operating Segment

The fair value measurements were calculated using unobservable inputs to our discounted cash flows, which are classified as Level 3 within the fair value hierarchy.  To arrive at the cash flow projections used in the calculation of fair values for our goodwill impairment review, we use estimates of economic and market activity for the next ten years.  The key assumptions we used to estimate the fair values of our reporting units are:

·   Revenue growth rates;

·   Operating margins;

·   Capital expenditure needs;

·   Working capital requirements;

·   Discount rates; and

·   Terminal value capitalization rate (“Capitalization Rate”)

Of the key assumptions, the discount rates and the Capitalization Rate are market-driven.  These rates are derived from the use of market data and employment of the weighted-average cost of capital.  The company-dependent key assumptions are the revenue growth rates and the projected operating margins and are subject to much greater influence from our actions.  The company-dependent key assumptions reflect the influence of other potential assumptions, since the assumptions we identified that affect the projected operating results would ultimately affect either the revenue growth or the profitability (operating margin) of the reporting unit.  For example, any adjustment to contract volume and pricing would have a direct impact on revenue growth, and any adjustment to the reporting unit’s cost structure or operating leverage would have a direct impact on the profitability of the reporting unit.  For the purpose of the income approach, we used discount rates that are commensurate with the risk and uncertainty inherent in the respective reporting units and in our internally-developed forecasts.  Actual results may differ from those assumed in our forecasts and changes in assumptions or estimates could materially affect the determination of the fair value of a reporting unit, and therefore could affect the amount of potential impairment.

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When performing our impairment analysis, we also reconcile the sum of the fair values of our reporting units with our market capitalization to determine if the sum reasonably reconciles with the external market indicators.  If our reconciliation indicates a significant difference between our external market capitalization and the sum of the fair values of our reporting units, we review and adjust the assumptions employed in our analysis, and examine if the implied control premium is reasonable in light of current market conditions.

Inherent in our development of the present value of future cash flow projections are assumptions and estimates derived from a review of our expected revenue growth rates, profit margins, business plans, cost of capital and tax rates.  We also make assumptions about future market conditions, market prices, interest rates, and changes in business strategies.  Changes in our assumptions or estimates could materially affect the determination of the fair value of a reporting unit and, therefore, could eliminate the excess of fair value over the carrying value of a reporting unit entirely and, in some cases, could result in impairment.  Such changes in assumptions could be caused by a loss of one or more significant contracts, reductions in government and/or private industry spending, including federal government sequestration, or a decline in the demand of our services due to changing economic conditions.  Given the contractual nature of our business, if we are unable to win or renew contracts; unable to estimate and control our contract costs; fail to adequately perform to our clients’ expectations; fail to procure third-party subcontractors, heavy equipment and materials; or fail to adequately secure funding for our projects, our profits, revenues and growth over the long-term would decline and such a decline could significantly affect the fair value assessment of our reporting units and cause our goodwill to become impaired.

Goodwill was allocated to the reporting units based upon the respective fair values of the reporting units at the time of the various acquisitions that gave rise to the recognition of goodwill.

We perform our annual goodwill impairment review as of the end of the first month following our September reporting period and also perform interim impairment reviews if triggering events occur.  Our 2012 annual review, performed as of October 26, 2012, did not indicate any further adjustment to our goodwill.  No events or changes in circumstances have occurred that would indicate any additional impairment adjustment of goodwill since our annual testing date.  We continue to monitor the recoverability of our goodwill.

During fiscal year 2011, our market capitalization was reduced due to the stock market volatility and declines in our stock price.  For the year ended December 30, 2011, we recorded goodwill impairment charges in five of our reporting units totaling $825.8 million ($732.2 million after tax).  There was no goodwill impairment for any of our reporting units during the years ended December 28, 2012 and December 31, 2010.  These non-cash charges reduced goodwill recorded in connection with previous acquisitions and did not impact our overall business operations.

Declines in our stock price or in the values of other market participants in the construction and engineering industry, continued deterioration of market and economic conditions that may adversely impact our ability to meet our projected results, declines in our stock price caused by continued volatility in the financial markets that may result in increases in our weighted-average cost of capital or other inputs to our goodwill assessment, and the occurrence of events that may reduce the fair value of a reporting unit below its carrying amount, such as the sale of a significant portion of one or more of our reporting units could result in future impairment charges to our reporting units.

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(Continued)

Our annual impairment test indicated that the fair values of the reporting units exceeded their carrying values, thereby resulting in no indication of impairment.  All of our reporting units had fair values in excess of carrying values by more than 10% as follows:

(in millions)	Goodwill Balance as of December 28, 2012		Reporting Unit Fair Value		Reporting Unit Carrying Value		Percent Above Carrying Value
Infrastructure & Environment Operating Segment	$	772.9	$	1,512.0	$	1,341.5		12.7	%
Federal Services Operating Segment		710.3		1,218.0		1,017.0		19.8	%
Within the Energy & Construction Operating Segment:
Global Management and Operations Services Group		405.4		834.0		677.0		23.2	%
Civil Construction & Mining Group		212.3		356.0		267.9		32.9	%
Industrial/Process Group		118.0		263.0		157.8		66.7	%
Power Group		570.6		789.0		633.3		24.6	%
Total Energy & Construction Operating Segment		1,306.3		2,242.0		1,736.0		29.1	%
Oil & Gas Operating Segment		457.6		1,712.0		1,502.8		13.9	%
Total	$	3,247.1	$	6,684.0	$	5,597.3		19.4	%

Intangible Assets

Intangible assets are comprised of customer relationships, contracts, backlog, trade name, favorable leases and other.  As of December 28, 2012 and December 30, 2011, the cost and accumulated amortization of our intangible assets were as follows:

(In millions)	Customer Relationships, Contracts, and Backlog			Trade Name			Favorable Leases and Other			Total
Balance as of December 31, 2010	$	487.3		$	24.9		$	1.9		$	514.1
Acquisitions		62.9			2.5			4.7			70.1
Amortization expense		(56.8	)		(1.6	)		(2.2	)		(60.6	)
Other additions and foreign currency translation		(2.3	)		(0.2	)		0.9			(1.6	)
Balance as of December 30, 2011		491.1			25.6			5.3			522.0
Acquisitions		163.0			93.5			9.8			266.3
Amortization expense		(93.9	)		(4.8	)		(2.5	)		(101.2	)
Other additions and foreign currency translation		3.3			1.7			0.1			5.1
Balance as of December 28, 2012	$	563.5		$	116.0		$	12.7		$	692.2
Estimated useful lives	1 - 16 years			1 - 40 years (1)			1 - 13 years

(1)   During the fourth quarter of 2011, we revised the estimated useful life of the Scott Wilson trade name from 25 years to 12 years because we decided to reduce the use of the trade name.  The estimated useful life of the Flint trade name in the U.S. and Canada is 40 years.

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(Continued)

Our amortization expense related to intangible assets was $101.2 million, $60.6 million, and $49.2 million, respectively, for the years ended December 28, 2012, December 30, 2011, and December 31, 2010.

The following table presents the estimated future amortization expense of intangible assets:

(In millions)	Customer Relationships,  Contracts, and Backlog		Trade Name		Favorable Leases and Other		Total
2013	$	101.3	$	5.6	$	1.8	$	108.7
2014		89.2		4.6		1.5		95.3
2015		78.1		4.2		1.1		83.4
2016		72.7		4.3		1.1		78.1
2017		67.3		4.3		0.5		72.1
Thereafter		154.9		93.0		6.7		254.6
	$	563.5	$	116.0	$	12.7	$	692.2

NOTE 10.  INDEBTEDNESS

Indebtedness consisted of the following:

	December 28,		December 30,
(In millions)	2012		2011
Term loan, net of debt issuance costs	$	666.3	$	695.1
3.85% Senior Notes (net of discount)		399.5		—
5.00% Senior Notes (net of discount)		599.5		—
7.50% Canadian Notes (including premium)		203.8		—
Revolving line of credit		100.5		23.0
Other indebtedness		94.7		80.4
Total indebtedness		2,064.3		798.5
Less:
Current portion of long-term debt		71.8		61.5
Long-term debt	$	1,992.5	$	737.0

2011 Credit Facility

As of December 28, 2012 and December 30, 2011, the outstanding balances of the term loan under our senior credit facility (“2011 Credit Facility”) were $670.0 million and $700.0 million, respectively.  Loans outstanding under our 2011 Credit Facility bear interest, at our option, at the base rate or at the London Interbank Offered Rate (“LIBOR”) plus, in each case, an applicable per annum margin.  The applicable margin is determined based on the better of our debt ratings or our leverage ratio in accordance with a pricing grid.  The interest rate at which we normally borrow is comprised of LIBOR plus 150 basis points.  As of December 28, 2012 and December 30, 2011, the interest rates applicable to the term loan were 1.71% and 1.80%, respectively.

Our 2011 Credit Facility will mature on October 19, 2016 and our first quarterly principal payment was due on December 28, 2012.  We have an option to prepay the term loans at any time without penalty.

Under our 2011 Credit Facility, we are subject to financial covenants and other customary non-financial covenants.  Our financial covenants include a maximum consolidated leverage ratio, which is calculated by dividing total debt by earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined below, and a minimum interest coverage ratio, which is calculated by dividing cash interest expense into EBITDA.  Both calculations are based on the financial data of our most recent four fiscal quarters.

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For purposes of our 2011 Credit Facility, consolidated EBITDA is defined as consolidated net income attributable to URS plus interest, depreciation and amortization expense, income tax expense, and other non-cash items (including impairments of goodwill or intangible assets).  Consolidated EBITDA shall include pro-forma components of EBITDA attributable to any permitted acquisition consummated during the period of calculation.

Our 2011 Credit Facility contains restrictions, some of which apply only above specific thresholds, regarding indebtedness, liens, investments and acquisitions, contingent obligations, dividend payments, stock repurchases, asset sales, fundamental business changes, transactions with affiliates, and changes in fiscal year.

Our 2011 Credit Facility identifies various events of default and provides for acceleration of the obligations and exercise of other enforcement remedies upon default.  Events of default include our failure to make payments under the credit facility; cross-defaults; a breach of financial, affirmative and negative covenants; a breach of representations and warranties; bankruptcy and other insolvency events; the existence of unsatisfied judgments and attachments; dissolution; other events relating to the Employee Retirement Income Security Act (“ERISA”); a change in control and invalidity of loan documents.

Our 2011 Credit Facility is guaranteed by all of our existing and future domestic subsidiaries that, on an individual basis, represent more than 10% of either our consolidated domestic assets or consolidated domestic revenues.  If necessary, additional domestic subsidiaries will be included so that assets and revenues of subsidiary guarantors are equal at all times to at least 80% of our consolidated domestic assets and consolidated domestic revenues of our available domestic subsidiaries.

We may use any future borrowings from our 2011 Credit Facility along with operating cash flows for general corporate purposes, including funding working capital, making capital expenditures, funding acquisitions, dividends and repurchasing our common stock.

We were in compliance with the covenants of our 2011 Credit Facility as of December 28, 2012.

Senior Notes and Canadian Notes

On March 15, 2012, we issued in a private placement $400.0 million aggregate principal amount of 3.85% Senior Notes due on April 1, 2017 and $600.0 million aggregate principal amount of 5.00% Senior Notes due on April 1, 2022 (collectively, the “Senior Notes”).  As of December 28, 2012, the outstanding balance of the Senior Notes was $999.0 million, net of $1.0 million of discount.

Interest on the Senior Notes is payable semi-annually on April 1 and October 1 of each year beginning on October 1, 2012.  The net proceeds of the Senior Notes were used to fund the acquisition of Flint.  We may redeem the Senior Notes, in whole or in part, at any time and from time to time, at a price equal to 100% of the principal amount, plus a "make-whole" premium and accrued and unpaid interest as described in the indenture.  In addition, we may redeem all or a portion of the 5.00% Senior Notes at any time on or after the date that is three months prior to the maturity date of those 5.00% Senior Notes, at a redemption price equal to 100% of the principal amount of the 5.00% Senior Notes to be redeemed.  We may also, at our option, redeem the Senior Notes, in whole, at 100% of the principal amount and accrued and unpaid interest upon the occurrence of certain events that result in an obligation to pay additional amounts as a result of certain specified changes in tax law described in the indenture.  Additionally, if a change of control triggering event occurs, as defined by the terms of the indenture, we will be required to offer to purchase the Senior Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of the purchase.  We are generally not limited under the indenture governing the Senior Notes in our ability to incur additional indebtedness provided we are in compliance with certain restrictive covenants, including restrictions on liens and restrictions on sale and leaseback transactions, and merge or sell substantially all of our property and assets.

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The Senior Notes are our general unsecured senior obligations and rank equally with our other existing and future unsecured senior indebtedness.  The Senior Notes are fully and unconditionally guaranteed (the “Guarantees”) by each of our current and future domestic subsidiaries that are guarantors under our 2011 Credit Facility or that are wholly owned domestic obligors or wholly owned domestic guarantors, individually or collectively, under any future indebtedness of our subsidiaries in excess of $100.0 million (the “Guarantors”).  The Guarantees are the Guarantors’ unsecured senior obligations and rank equally with the Guarantors’ other existing and future unsecured senior indebtedness.

In connection with the sale of the Senior Notes, we entered into a registration rights agreement under which we agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) offering to exchange any privately placed Senior Notes with substantially similar notes, except that the newly exchanged notes will be unrestricted and freely tradable securities.  We also agreed to use commercially reasonable efforts to cause the registration statement to be declared effective by the SEC and complete the exchange offer no later than March 15, 2013.  We do not expect to complete our exchange offer until after March 15, 2013.  After that date, we will be required to pay additional interest up to a maximum of 50 basis points to the holders of the Senior Notes until the exchange offer is completed.

On May 14, 2012, we guaranteed Flint’s senior notes (the “Canadian Notes”) with an outstanding face value of C$175.0 million (US$175.0 million).  The Canadian Notes mature on June 15, 2019 and bear interest at 7.5% per year, payable in equal installments semi-annually in arrears on June 15 and December 15 of each year.  As of December 28, 2012, the outstanding balance of the Canadian Notes was $203.8 million, including $28.0 million of premium.

The Canadian Notes are Flint’s direct senior unsecured obligations and rank pari passu, subject to statutory preferred exceptions, with URS’ guarantee of that debt.  Prior to June 15, 2014, we may redeem up to 35.0% of the principal amount of the outstanding Canadian Notes with the net cash proceeds of one or more qualified equity offerings at a redemption price equal to 107.5% of the principal amount of the Canadian Notes, provided that at least 65.0% of the aggregate principal amount of the Canadian Notes remain outstanding.  We may also redeem the Canadian Notes prior to June 15, 2015 at a redemption price equal to 100.0% of the principal amount of the Canadian Notes plus an applicable premium.  We may also redeem the Canadian Notes on or after June 15, 2015 at a redemption price equal to 103.8% of the principal amount if redeemed in the twelve-month period beginning June 15, 2015; at a redemption price equal to 101.9% of the principal amount if redeemed in the twelve-month period beginning June 15, 2016 and at a redemption price equal to 100.0% of the principal amount if redeemed in the period beginning June 15, 2017 before maturity.

Upon the occurrence of a change in control, Canadian Notes holders have a right to require that their Notes be redeemed at a cash price equal to 101.0% of the principal amount of the Canadian Notes.  Our acquisition of Flint constituted a change in control under the Canadian Note indenture and, as a result, the holders of the Canadian Notes had the right to require that their Notes be redeemed.  The Canadian Notes also contain covenants limiting us and some of our subsidiaries’ ability to create liens and restricts them from amalgamating, consolidating or merging with or into or winding up or dissolving into another person or selling, leasing, transferring, conveying or otherwise disposing of or assigning all or substantially all of their assets.  The Canadian Notes also contain covenants, which are suspended as long as the Canadian Notes have investment grade ratings, that would restrict us and some of our subsidiaries from making restricted payments, incurring indebtedness, selling assets and entering into transactions with affiliates.  As of December 28, 2012, the Canadian Notes carried investment grade ratings.

We were in compliance with the covenants of our Senior Notes and Canadian Notes as of December 28, 2012.

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(Continued)

Revolving Line of Credit

Our revolving line of credit is used to fund daily operating cash needs and to support our standby letters of credit.  In the ordinary course of business, the use of our revolving line of credit is a function of collection and disbursement activities.  Our daily cash needs generally follow a predictable pattern that parallels our payroll cycles, which dictate, as necessary, our short-term borrowing requirements.

We had outstanding debt balances of $100.5 million and $23.0 million on our revolving line of credit as of December 28, 2012 and December 30, 2011, respectively.  As of December 28, 2012, we had issued $132.0 million of letters of credit, leaving $767.5 million available under our revolving credit facility.

Our revolving line of credit information was summarized as follows:

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
Effective average interest rates paid on the revolving line of credit		1.9	%		1.3	%		3.0	%
Average daily revolving line of credit balances	$	139.5		$	25.9		$	0.3
Maximum amounts outstanding at any point during the year	$	420.0		$	104.6		$	12.1

Other Indebtedness

Notes payable, five year loan notes, and foreign credit lines.  As of December 28, 2012 and December 30, 2011, we had outstanding amounts of $35.5 million and $53.1 million, respectively, in notes payable, five-year loan notes, and foreign lines of credit.  The weighted-average interest rates of the notes were approximately 4.68% and 4.04% as of December 28, 2012 and December 30, 2011, respectively.  Notes payable primarily include notes used to finance the purchase of office equipment, computer equipment and furniture.

As of December 28, 2012 and December 30, 2011, we maintained several credit lines with aggregate borrowing capacity of $50.8 million and $33.7 million, respectively, and had remaining borrowing capacity of $47.7 million and $23.2 million, respectively.

Capital Leases.  As of December 28, 2012 and December 30, 2011, we had obligations under our capital leases of approximately $59.2 million and $27.3 million, respectively, consisting primarily of leases for office equipment, computer equipment and furniture.

Maturities

As of December 28, 2012, the amounts of our long-term debt outstanding (excluding capital leases) that mature in the next five years and thereafter were as follows:

(In millions)
Less than one year	$	43.4
Second year		60.1
Third year		71.8
Fourth year		626.8
Fifth year		399.8
Thereafter		803.2
Total	$	2,005.1

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(Continued)

As of December 28, 2012, the amounts of capital leases that mature in the next five years and thereafter were as follows:

(In millions)	Capital Leases
Less than one year	$	29.9
Second year		11.7
Third year		9.6
Fourth year		7.6
Fifth year		3.5
Total minimum lease payments		62.3
Less: amounts representing interest		3.1
Present value of net minimum lease payments	$	59.2

NOTE 11.  FAIR VALUE OF DEBT INSTRUMENTS AND DERIVATIVE INSTRUMENTS

2011 Credit Facility

As of December 28, 2012 and December 30, 2011, the estimated fair market values of the term loan under our 2011 Credit Facility were approximately $667.3 million and $697.4 million, respectively.  The carrying value of this term loan on our Consolidated Balance Sheets as of December 28, 2012 and December 30, 2011 was $670.0 million and $700.0 million, respectively, excluding unamortized issuance costs.  The fair value of our term loan was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary loan market and multiplying it by the outstanding balance of our term loan.

Senior Notes and Canadian Notes

As of December 28, 2012, the estimated fair market value of the Senior Notes and Canadian Notes was approximately $1.2 billion and the carrying value of these notes on our Consolidated Balance Sheets was $1.2 billion, excluding unamortized discount.  The fair value of the Senior Notes and Canadian Notes was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary loan market and multiplying it by the outstanding balance of the notes.

Derivative Instruments

We use our derivative instruments as a risk management tool and not for trading or speculative purposes.  The fair value of each derivative instruments is based on mark-to-market model measurements that are interpolated from observable market data, including spot and forward rates, as of December 28, 2012 and for the duration of each derivative’s terms.  As of December 28, 2012, there were no derivative instruments outstanding.

Foreign Currency Exchange Contracts

We operate our business globally and our foreign subsidiaries conduct businesses in various foreign currencies.  Therefore, we are subject to foreign currency risk.  From time to time, we may purchase derivative financial instruments in the form of foreign currency exchange contracts to manage specific foreign currency exposures.

During March and April 2012, we entered into various foreign currency forward contracts with an aggregate notional amount of C$1.25 billion (equivalent to US$1.25 billion as of March 30, 2012) with maturity windows ranging from March 7, 2012 to May 31, 2012.  The primary objective of the contracts was to manage our exposure to foreign currency transaction risk related to the funding of our acquisition of Flint in Canadian dollars.  These contracts settled during the second quarter of 2012.

For the year ended December 28, 2012, we recorded a net loss of $0.3 million on our foreign currency forward contracts in “General and administrative expenses” on our Consolidated Statements of Operations.  We also recorded foreign currency translation gains of $0.8 million on intercompany loans for the year ended December 28, 2012.

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(Continued)

NOTE 12.  BILLINGS IN EXCESS OF COSTS AND ACCRUED EARNINGS ON CONTRACTS

The following table summarizes the components of billings in excess of costs and accrued earnings on contracts:

	December 28,		December 30,
(In millions)	2012		2011
Billings in excess of costs and accrued earnings on contracts	$	211.7	$	216.4
Project-related legal liabilities and other project-related reserves		55.2		38.0
Advance payments negotiated as a contract condition		9.8		24.6
Normal profit liabilities		4.8		12.7
Estimated losses on uncompleted contracts		7.6		19.1
Total	$	289.1	$	310.8

NOTE 13.  INCOME TAXES

The components of income tax expense were as follows:

	Year Ended
	December 28,			December 30,			December 31,
(In millions)	2012			2011			2010
Current:
Federal	$	152.3		$	78.3		$	85.9
State and local		35.9			17.6			19.0
Foreign		18.3			19.2			11.8
Subtotal		206.5			115.1			116.7
Deferred:
Federal		(10.5	)		(19.0	)		8.5
State and local		1.0			(0.8	)		3.9
Foreign		(7.1	)		(3.5	)		(1.5	)
Subtotal		(16.6	)		(23.3	)		10.9
Total income tax expense	$	189.9		$	91.8		$	127.6

The income before income taxes, by geographic area, was as follows:

	Year Ended
	December 28,			December 30,				December 31,
(In millions)	2012			2011				2010
Income (loss) before income taxes and noncontrolling interests:
United States		$	534.9		$	(316.2	)		$	430.9
International			80.8			70.7				82.9
Total income (loss) before income taxes and noncontrolling interests		$	615.7		$	(245.5	)		$	513.8

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(Continued)

As of December 28, 2012, our federal net operating loss (“NOL”) carryovers were approximately $15.9 million.  These federal NOL carryovers expire in years 2021 through 2025.  In addition to the federal NOL carryovers, there are also state income tax NOL carryovers in various taxing jurisdictions of approximately $297.0 million.  These state NOL carryovers expire in years 2013 through 2031.  There are also foreign NOL carryovers in various jurisdictions of approximately $544.4 million.  The majority of the foreign NOL carryovers have no expiration date.  At December 28, 2012, the federal, state and foreign NOL carryovers resulted in a deferred tax asset of $132.2 million with a valuation allowance of $106.0 million established against this deferred tax asset.  None of the remaining net deferred tax assets related to NOL carryovers is individually material and management believes that it is more likely than not they will be realized.  Full recovery of our NOL carryovers will require that the appropriate legal entity generate taxable income in the future at least equal to the amount of the NOL carryovers within the applicable taxing jurisdiction.

As of December 28, 2012 and December 30, 2011, we have remaining tax-deductible goodwill of $223.2 million and $316.5 million, respectively, resulting from acquisitions.  The amortization of this goodwill is deductible over various periods ranging up to 14 years.  The tax deduction for goodwill for 2013 is expected to be approximately $85.5 million and is expected to be substantially lower beginning in 2015.

The significant components of our deferred tax assets and liabilities were as follows:

	Year Ended
	December 28,			December 30,			December 31,
(In millions)	2012			2011			2010
Current:
Receivable allowances	$	6.7		$	4.5		$	6.1
Net operating losses		1.6			1.2			3.9
Estimated loss accruals		43.6			39.8			38.7
State income taxes		0.1			2.9			3.2
Payroll-related accruals		89.8			85.0			74.4
Self-insurance reserves		8.8			6.8			4.9
Unearned revenue		3.1			(2.0	)		0.1
Deferred compensation and post-retirement benefit accruals		3.2			3.1			3.7
Other		4.2			2.0			1.4
Gross current deferred tax assets		161.1			143.3			136.4
Valuation allowance		(10.5	)		(8.1	)		(7.4	)
Current deferred tax assets		150.6			135.2			129.0
Revenue on retained accounts receivable		(17.0	)		(7.0	)		(5.4	)
Timing of income from partnerships and limited liability companies		(25.6	)		(13.8	)		8.2
Costs and accrued earnings in excess of billings on contracts		(35.1	)		(40.7	)		(37.4	)
Prepaid expenses		(5.3	)		(10.7	)		(11.1	)
Current deferred tax liabilities		(83.0	)		(72.2	)		(45.7	)
Net current deferred tax assets	$	67.6		$	63.0		$	83.3

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(Continued)

	Year Ended
	December 28,			December 30,			December 31,
(In millions)	2012			2011			2010
Non-Current:
Deferred compensation and post-retirement benefit accruals	$	144.6		$	111.9		$	104.0
Self-insurance reserves		29.4			33.5			35.0
Property, plant and equipment		2.0			9.2			3.3
Foreign tax credits		7.1			7.1			7.1
Income tax credits		8.0			3.4			3.2
Rental accruals		21.6			16.3			9.2
Net operating losses		130.6			107.2			108.0
Other reserves		18.8			14.7			25.3
Gross non-current deferred tax assets		362.1			303.3			295.1
Valuation allowance		(127.1	)		(115.9	)		(96.7	)
Net non-current deferred tax assets		235.0			187.4			198.4
Goodwill and other intangibles		(348.1	)		(273.0	)		(343.6	)
Foreign subsidiary outside basis difference		(2.0	)		(0.7	)		(0.3	)
Domestic subsidiary outside basis difference		(144.8	)		(144.8	)		(145.5	)
Market value adjustment on acquired assets		(4.4	)		(4.4	)		(4.4	)
Property, plant and equipment		(64.0	)		(41.0	)		(31.5	)
Non-current deferred tax liabilities		(563.3	)		(463.9	)		(525.3	)
Net non-current deferred tax liabilities	$	(328.3	)	$	(276.5	)	$	(326.9	)

We have indefinitely reinvested $499.1 million of undistributed earnings of our foreign operations outside of our U.S. tax jurisdiction as of December 28, 2012.  No deferred tax liability has been recognized for the remittance of such earnings to the U.S. since it is our intention to utilize these earnings in our foreign operations.  The determination of the amount of deferred taxes on these earnings is not practicable since the computation would depend on a number of factors that cannot be known unless a decision is made to repatriate the earnings.  Some of our foreign earnings are indefinitely reinvested between other foreign countries.

The difference between total tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes was as follows:

	Year Ended
	December 28, 2012			December 30, 2011			December 31, 2010
(In millions, except for percentages)	Amount		Tax Rate	Amount		Tax Rate	Amount		Tax Rate
U.S. statutory rate applied to income (loss) before taxes	$	215.5	35.0%	$	(85.9)	35.0%	$	179.8	35.0%
State taxes, net of federal benefit		26.3	4.3%		11.2	(4.6%)		17.9	3.5%
Change in indefinite reinvestment assertion		—	—		—	—		(57.2)	(11.1%)
Adjustments to valuation allowances		4.0	0.6%		19.6	(8.0%)		14.6	2.8%
Adjustments related to changing foreign tax credits to deductions		—	—		—	—		12.6	2.5%
Foreign income taxed at rates other than 35%		(26.0)	(4.2%)		(28.2)	11.5%		(19.8)	(3.9%)
Goodwill impairment		—	—		207.1	(84.4%)		—	—
Exclusion of tax on noncontrolling interests		(29.9)	(4.9%)		(30.1)	12.3%		(23.7)	(4.6%)
Other adjustments		—	—		(1.9)	0.8%		3.4	0.6%
Total income tax expense	$	189.9	30.8%	$	91.8	(37.4%)	$	127.6	24.8%

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(Continued)

The 37.4% negative effective tax rate for the year ended December 30, 2011 differs from the statutory rate of 35% primarily due to the goodwill impairment charge taken during the year, a substantial portion of which is not deductible for tax purposes.

The effective income tax rate for the year ended December 31, 2010 is less than the statutory rate of 35% primarily due to a change in our indefinite reinvestment assertion during the year.  During our fiscal year 2010, we determined that our plans to expand our international presence would require that we indefinitely reinvest the earnings of all of our foreign subsidiaries offshore, which resulted in the reversal of the net U.S. deferred tax liability on the undistributed earnings of all foreign subsidiaries.  This benefit increased net income attributable to URS by $42.1 million.

As of December 28, 2012, December 30, 2011 and December 31, 2010, we had $15.4 million, $16.7 million and $21.5 million of unrecognized tax benefits, respectively.  Included in the balance of unrecognized tax benefits at the end of fiscal year 2012 were $11.4 million of tax benefits, which, if recognized, would affect our effective tax rate.  A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended
	December 28,			December 30,			December 31,
(In millions)	2012			2011			2010
Unrecognized tax benefits beginning balance	$	16.7		$	21.5		$	25.2
Gross increase – tax positions in prior years		1.2			2.7			1.1
Gross decrease – tax positions in prior years		(1.2	)		(3.6	)		(1.5	)
Gross increase – current period tax positions		1.2			—			1.4
Settlements		(0.2	)		(0.2	)		(0.2	)
Lapse of statute of limitations		(2.4	)		(3.7	)		(5.3	)
Unrecognized tax benefits acquired in current year		0.1			—			0.8
Unrecognized tax benefits ending balance	$	15.4		$	16.7		$	21.5

We recognize accrued interest related to unrecognized tax benefits in interest expense and penalties as a component of tax expense.  During the years ended December 28, 2012, December 30, 2011 and December 31, 2010, we recognized $(1.4) million, $(1.4) million and $1.5 million, respectively, in interest and penalties.  We have accrued approximately $5.3 million, $6.7 million and $8.1 million in interest and penalties as of December 28, 2012, December 30, 2011 and December 31, 2010, respectively.  With a few exceptions, in jurisdictions where our tax liability is immaterial, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2008.

It is reasonably possible that unrecognized tax benefits will decrease up to $2.7 million within the next twelve months as a result of the settlement of tax audits.  The timing and amounts of these audit settlements are uncertain, but we do not expect any of these settlements to have a significant impact on our financial position or results of operations.

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(Continued)

NOTE 14.  EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFIT PLANS

Defined Contribution Plans

We made contributions of $91.0 million, $48.1 million and $83.0 million to our defined contribution plans during the years ended December 28, 2012, December 30, 2011, and December 31, 2010, respectively.  Full- and part-time employees, and employees covered by collective bargaining agreements are generally able to participate in one of our defined contribution plans.  Cash contributions to these defined contribution plans are based on either a percentage of employee contributions or on a specified amount per hour depending on the provisions of each plan.  Effective January 1, 2011, the Washington Group International, Inc. (“WGI”) 401(k) Retirement Savings Plan (“the WGI 401(k) Plan”) and the Retirement Savings Plan for Field Operations were merged with and into the URS Corporation 401(k) Retirement Plan.  Subsequently, the account balances of some participants were transferred into the URS Corporation 401(k) Retirement Plan for Specified Contract Employees.  Under the WGI 401(k) Plan, we made bi-weekly employer contributions.  Subsequent to the merger of the WGI 401(k) Plan, we make annual contributions, which generally occur in the first quarter after the year-end.

In addition to the above, some of our foreign subsidiaries have contributory trustee retirement plans covering substantially all of their employees.  Upon the acquisition of Flint, we began sponsoring Flint’s defined contribution plans.  We made contributions to our foreign plans in the amounts of approximately $35.9 million, $20.2 million, and $13.1 million for the years ended December 28, 2012, December 30, 2011, and December 31, 2010, respectively.

Deferred Compensation Plans

We maintain various deferred compensation plans, including a restoration plan for some executives of the Energy & Construction Division.  The URS E&C Holdings, Inc. Voluntary Deferred Compensation Plan allows for deferral of salary and incentive compensation.  The URS E&C Holdings, Inc. Restoration Plan provides matching contributions on compensation not eligible for matching contributions under the URS Corporation, Inc. 401(k) Plan.  As of December 28, 2012 and December 30, 2011, the accrued benefit amounts for our deferred compensation plans were $23.2 million and $21.6 million, respectively, and are included in “Other long-term liabilities” on our Consolidated Balance Sheets.

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(Continued)

Defined Benefit Plans

We sponsor a number of pension and unfunded supplemental executive retirement plans, including the following significant plans.

We provide a defined benefit plan, the URS Federal Technical Services, Inc. Employees' Retirement Plan, to cover some of the Federal Services Division’s hourly and salaried employees as well as our employees of a joint venture in which this business group participates.  This pension plan provides retirement benefit payments for the life of participating retired employees.  It was closed to new participants on June 30, 2003, but active participants continue to accrue benefits.  All participants are fully vested in their benefits.

As part of our acquisition of Scott Wilson, we assumed two foreign defined benefit retirement plans:  Scott Wilson Pension Scheme (“SWPS”) and Scott Wilson Railways Shared Cost Section of the Railways Pension Scheme (“RPS”).  The SWPS is closed to new participants and was closed to future accruals on October 1, 2010.  The RPS is closed to new participants other than those who have an indefeasible right to join under U.K. law.

As part of the WGI acquisition in 2007, we assumed various defined benefit pension plans and unfunded supplemental retirement plans, including the URS Government Services Group Pension Plan, the Washington Government Services Group Executive Pension Plan, the URS Safety Management Solutions Pension Plan, and others, which primarily cover groups of current and former employees of the Energy & Construction Division.  No new employees will be eligible to participate in these plans.  Accrued pension benefits for the qualified pension plans are based on pay and service through December 31, 2005.  These plans were closed to future accruals after December 31, 2005.

We also provided a foreign defined benefit plan (“Final Salary Pension Fund”) in the U.K.  The Final Salary Pension Fund provides retirement benefit payments for the life of participating retired employees and their spouses.  In 2006, we made a decision pursuant to a formal curtailment plan to eliminate the accrual of defined benefits for all future benefits under the Final Salary Pension Fund.  In 2011, this plan was merged into SWPS.

Consistent with foreign laws, we may also contribute funds into foreign government-managed accounts or insurance companies for our foreign employees.

Valuation

We measure our pension costs according to actuarial valuations and the projected unit credit method is used to determine pension costs for financial accounting purposes.

The discount rates for our defined benefit plans were derived using an actuarial “bond model.”  The models for domestic and foreign plans assume that we purchase bonds with a credit rating of AA or better by Standard & Poor’s and Moody’s, respectively, at prices based on a current bond yield and bond quality.  The model develops the yield on this portfolio of bonds as of the measurement date.  The cash flows from the bonds selected for the portfolio generally match our expected benefit payments in future years.

For our domestic plans, the Citigroup High Grade Credit Index (AAA/AA 10+ Year) or Citigroup Pension Discount Curve was used to determine the yield differential for cash flow streams from appropriate quality bonds as of the measurement date.  For our foreign plans, the iBoxx GBP Corporate Bond Index (AA 15+ Year) was used to determine the yield differential for cash flow streams from appropriate quality bonds as of the measurement date.

The weighted average of the bond yields is determined based upon the estimated retirement payments in order to derive the discount rate used in calculating the present value of the pension plan obligations.

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(Continued)

Our estimates of benefit obligations and assumptions used to measure those obligations for the defined benefit plans as of December 28, 2012 and December 30, 2011, were as follows:

	Domestic Plans						Foreign Plans
	December 28,			December 30,			December 28,			December 30,
(In millions, except percentages)	2012			2011			2012			2011
Change in benefit obligation:
Benefit obligation at beginning of year	$	383.3		$	350.2		$	447.9		$	418.6
Service cost		7.5			6.8			0.6			0.6
Interest cost		18.9			19.0			22.6			24.4
Employee contributions		—			—			0.4			0.5
Plan amendment		—			(1.1	)		—			—
Benefits paid and expenses		(16.6	)		(16.0	)		(14.9	)		(15.5	)
Exchange rate changes		—			—			20.8			(3.9	)
Actuarial (gain) loss		50.3			24.4			8.5			23.2
Benefit obligation at end of year	$	443.4		$	383.3		$	485.9		$	447.9
Change in plan assets:
Fair value of plan assets at beginning of year	$	236.4		$	205.4		$	334.3		$	345.8
Actual gain (loss) on plan assets		31.4			13.6			25.6			(2.5	)
Employer contributions		18.4			28.5			9.7			7.7
Employer direct benefit payments		4.6			4.9			—			—
Employee contributions		—			—			0.4			0.5
Exchange rate changes		—			—			15.7			(1.7	)
Benefits paid and expenses		(16.6	)		(16.0	)		(14.9	)		(15.5	)
Fair value of plan assets at end of year	$	274.2		$	236.4		$	370.8		$	334.3
Underfunded status reconciliation:
Underfunded status	$	169.2		$	146.9		$	115.1		$	113.6
Net amount recognized	$	169.2		$	146.9		$	115.1		$	113.6
Amounts recognized in our Consolidated Balance Sheets consist of:
Accrued benefit liability included in current liabilities	$	5.1		$	4.9		$	—		$	—
Accrued benefit liability included in other long-term liabilities		164.1			142.0			115.1			113.6
Net amount recognized	$	169.2		$	146.9		$	115.1		$	113.6

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(Continued)

	Domestic Plans						Foreign Plans
	December 28,			December 30,			December 28,			December 30,
(In millions, except percentages)	2012			2011			2012			2011
Amounts recognized in accumulated other comprehensive income consist of:
Prior service income	$	0.6		$	3.6		$	—		$	—
Net gain (loss)		(140.5	)		(113.6	)		(41.6	)		(34.8	)
Net amount recognized	$	(139.9	)	$	(110.0	)	$	(41.6	)	$	(34.8	)
Additional information:
Accumulated benefit obligation	$	437.6		$	376.3		$	470.7		$	435.1
Weighted-average assumptions used to determine benefit obligations at year end:
Discount rate		4.02	%		5.05	%		4.80	%		5.00	%
Rate of compensation increase		4.50	%		4.50	%		2.80	%		3.00	%

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(Continued)

Net periodic pension costs and other comprehensive income included the following components for the years ended December 28, 2012, December 30, 2011, and December 31, 2010:

	Years Ended
	Domestic Plans									Foreign Plans
	December 28,			December 30,			December 31,			December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010			2012			2011			2010  (1)
Net periodic pension costs:
Service cost	$	7.5		$	6.8		$	6.1		$	0.6		$	0.6		$	0.3
Interest cost		18.9			19.0			18.5			22.6			24.4			7.7
Expected return on plan assets		(17.7	)		(16.4	)		(15.9	)		(22.2	)		(22.9	)		(7.2	)
Amortization of prior service cost		(3.0	)		(3.2	)		(3.2	)		—			—			—
Recognized actuarial loss		9.8			7.4			3.7			—			—			0.1
Total net periodic pension costs	$	15.5		$	13.6		$	9.2		$	1.0		$	2.1		$	0.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Prior service cost	$	—		$	(1.1	)	$	—		$	—		$	—		$	—
Net loss (gain)		36.7			27.3			22.5			5.1			48.6			(17.4	)
Effect of exchange rate changes on amounts included in accumulated other comprehensive income		—			—			—			1.7			(1.9	)		0.1
Amortization or curtailment recognition of prior service credit		3.0			3.2			3.2			—			—			—
Amortization or settlement recognition of net loss		(9.8	)		(7.4	)		(3.7	)		—			—			(0.1	)
Total recognized in other comprehensive loss (income)	$	29.9		$	22.0		$	22.0		$	6.8		$	46.7		$	(17.4	)
Total recognized in net periodic pension costs and other comprehensive loss (income)	$	45.4		$	35.6		$	31.2		$	7.8		$	48.8		$	(16.5	)
Weighted-average assumptions used to determine net periodic cost for years ended:
Discount rate		5.05	%		5.55	%		6.05	%		5.00	%		5.70	%		5.45	%
Rate of compensation increase		4.50	%		4.50	%		4.50	%		3.00	%		3.45	%		3.45	%
Expected long-term rate of return on plan assets		7.34	%		7.44	%		7.89	%		7.00	%		6.96	%		6.67	%
Measurement dates	12/30/2011			12/31/2010			1/1/2010			12/30/2011			12/31/2010			1/1/2010

(1)   Measurement date for the two Scott Wilson plans was September 10, 2010, the acquisition date.  Net periodic pension costs and the amounts recognized in other comprehensive income (loss) for the Scott Wilson plans were partially included in the year ended December 31, 2010, as we completed the acquisition in September 2010.

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Investment policies & strategies

Our investment policies and strategies are to seek a competitive rate of return relative to an appropriate level of risk depending on the funded status and obligations of each plan.  The plans' investment managers employ both active and passive investment management strategies with the goal of matching or outperforming the broad markets in which they invest.  Our risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets.  The target asset allocation selected for each domestic plan reflects a risk/return profile that we believe is appropriate relative to each plan's liability structure and return goals.  We conduct periodic asset-liability studies for domestic plan assets in order to model various potential asset allocations in comparison to each plan's forecasted liabilities and liquidity needs.  For the foreign plans, asset allocation decisions are generally made by an independent board of trustees, or similar governing body.

For our domestic and foreign plans, investment objectives are aligned to generate returns that will enable the plans to meet their future obligations.  

The assumptions we use in determining the expected long-term rate of return on plan assets are based on an actuarial analysis.  This analysis includes a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy, given the anticipated requirements of the plan, to determine the average rate of earnings expected on the funds invested to provide for the pension plan benefits.  While the study gives appropriate consideration to recent fund performance and historical returns, the assumption is primarily a long-term, prospective rate.

Our weighted-average target asset allocation for the defined benefit plans is as follows:

	Current Target Asset Allocation
	Domestic Plans		Foreign Plans
Equity securities		50%	28%
Debt securities		50%	35%
Real estate		—	6%
Hedge fund		—	26%
Other		—	5%
Total		100%	100%

We expect to make cash contributions, including estimated employer-directed benefit payments, during 2013, of approximately $30.6 million to the domestic and foreign defined benefit plans.

As of December 28, 2012, the estimated portions of the net loss and the prior service credit in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost over the next fiscal year are $15.5 million and $0.4 million, respectively.  In addition, the estimated future benefit payments to be paid out in the next ten years under our defined benefit plans are as follows:

For the Fiscal Year:	Estimated Future Benefit Payments
(In millions)	Domestic Plans		Foreign Plans
2013	$	20.1	$	15.1
2014		37.0		15.4
2015		21.8		15.9
2016		22.4		16.3
2017		23.1		16.7
Next five fiscal years thereafter		123.5		90.4
Total	$	247.9	$	169.8

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(Continued)

Post-retirement Benefit Plans

We sponsor a number of retiree health and life insurance benefit plans (post-retirement benefit plans) for our Energy & Construction and Federal Services Divisions.  Post-retirement benefit plans provide medical and life insurance benefits to employees who meet eligibility requirements.  All of these benefits may be subject to deductibles, co-payment provisions, and other limitations.  The post-retirement benefits provided under company-sponsored health care and life insurance plans of the Energy & Construction Division were frozen prior to the WGI acquisition.  The Federal Services plan was closed to new participants in 2003.  We have reserved the right to amend or terminate the post-retirement benefits currently provided under the plans and may increase retirees’ cash contributions at any time.

Valuation

Our measures of the accumulated benefit obligation and net periodic benefit costs reflect amounts associated with the Medicare subsidy.  We measure our post-retirement benefit costs according to actuarial valuations and the projected unit credit method is used to determine post-retirement benefit costs for financial accounting purposes.

The discount rate was derived using a “bond model” and adjusted for the benefit duration for each plan.  The Citigroup Pension Discount Curve was used to determine the yield differential for cash flow streams from appropriate quality bonds as of the measurement date.  The yield differential was applied to the bond model rate to derive the discount rate.

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(Continued)

Our estimates of aggregated benefit obligations and assumptions used to measure those obligations of the post-retirement benefit plans at December 28, 2012 and December 30, 2011 were as follows:

	December 28,			December 30,
(In millions, except percentages)	2012			2011
Change in accumulated post-retirement benefit obligation:
Accumulated post-retirement benefit obligation at beginning of year	$	41.9		$	40.1
Service cost		0.2			0.1
Interest cost		1.9			2.0
Employee contributions		2.0			2.3
Benefits paid and expenses		(5.8	)		(7.0	)
Actuarial gain		3.4			4.4
Accumulated post-retirement benefit obligation at end of year	$	43.6		$	41.9
Change in plan assets:
Fair value of plan assets at beginning of year	$	3.2		$	3.6
Actual gain (loss) on plan assets		(0.2	)		(0.4	)
Employer contributions		—			0.5
Employer direct benefit payments		3.9			4.2
Employee contributions		2.0			2.3
Benefits paid and expenses		(5.8	)		(7.0	)
Fair value of plan assets at end of year	$	3.1		$	3.2
Funded status reconciliation:
Underfunded status	$	40.5		$	38.7
Net amount recognized	$	40.5		$	38.7
Amounts recognized in our Consolidated Balance Sheets consist of:
Accrued post-retirement benefit liability included in current liabilities		3.3			3.2
Accrued post-retirement benefit liability included in other long-term liabilities		37.2			35.5
Net amount recognized	$	40.5		$	38.7
Amounts recognized in accumulated other comprehensive income consist of:
Net gain (loss)	$	(7.3	)	$	(4.1	)
Net amount recognized	$	(7.3	)	$	(4.1	)
Weighted-average assumptions used to determine benefit obligations at year end:
Discount rate		3.48	%		4.69	%

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(Continued)

Net periodic post-retirement benefit costs and other comprehensive income included the following components for the years ended December 28, 2012, December 30, 2011, and December 31, 2010:

	Years Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
Net periodic post-retirement benefit costs:
Service cost	$	0.2		$	0.1		$	0.1
Interest cost		1.9			2.0			2.2
Expected return on plan assets		(0.2	)		(0.2	)		(0.2	)
Recognized actuarial loss (gain)		0.6			(0.1	)		(0.2	)
Total net periodic post-retirement benefit costs	$	2.5		$	1.8		$	1.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss	$	3.8		$	5.0		$	0.2
Amortization or settlement recognition of net (loss) gain		(0.6	)		0.1			0.2
Total recognized in other comprehensive loss	$	3.2		$	5.1		$	0.4
Total recognized in net periodic post-retirement benefit costs and other comprehensive loss	$	5.7		$	6.9		$	2.3
Weighted-average assumptions used to determine net periodic cost for years ended:
Discount rate		4.69	%		5.23	%		5.72	%
Expected long-term rate of return on plan assets		7.50	%		7.50	%		8.00	%
Measurement dates	12/30/2011			12/31/2010			1/1/2010

	December 28,		December 30,
	2012		2011
Assumed blended health care cost trend rates at year-end:
Health care cost trend rate assumed for next year		7.94%	7.97%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.94%	4.94%
Years that the rates reach the ultimate trend rate		2020/2024	2020/2024

Assumed health care costs trend rates have a significant effect on the health care plan.  A one percentage point change in assumed health care costs trend rates would have the following effects on net periodic cost for the year ended December 28, 2012 and the accumulated post-retirement benefit obligation as of December 28, 2012:

	1% Point
(In millions)	Increase			Decrease
Effect on total of service and interest cost components		$	0.1		$	0.1
Effect on post-retirement benefit obligation			1.9			1.7

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(Continued)

Investment policies & strategies

Among all the post retirement benefit plans we sponsor, the post-retirement medical plan of the Federal Services Division is a funded plan and the plan assets are invested in a master trust.  The other post-retirement benefit plans are unfunded.  The investment policies and strategies of our funded post-retirement benefit plan are the same as previously described in the “Defined Benefit Plans” section.

Our weighted-average target asset allocation for the funded post-retirement benefit plans is as follows:

	Current Target Asset Allocation
Equity securities		50%
Debt securities		50%
Total		100%

We currently expect to make cash contributions, including estimated employer direct benefit payments, of approximately $3.6 million to the post-retirement benefit plans for 2013.

As of December 28, 2012, the estimated portions of the net loss and the prior service cost in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost over the next fiscal year are $0.5 million and zero, respectively.  Our Medicare Part D subsidy receipts were $0.4 million and $0.5 million in fiscal years 2012 and 2011, respectively.  In addition, the estimated future benefit payments to be paid out and estimated Medicare subsidy receipts in the next ten years are as follows:

For the Fiscal Year: (In millions)	Estimated Future Benefit Payments		Estimated Medicare Subsidy Receipts
2013	$	3.6	$	0.4
2014		3.6		0.4
2015		3.7		0.4
2016		3.6		0.3
2017		3.6		0.3
Next five fiscal years thereafter		15.8		1.1
Total	$	33.9	$	2.9

Fair Values of Defined Benefit Plans and Post-retirement Benefit Plan Assets

As of December 28, 2012 and December 30, 2011, the fair values of our defined benefit plan assets by the major asset categories are as follows:

	Total			Fair Value Measurement as of December 28, 2012
	Carrying									Significant
	Value as of			Quoted Prices in			Significant Other			Unobservable
	December 28,			Active Markets			Observable Inputs			Inputs
(In millions)	2012			(Level 1)			(Level 2)			(Level 3)
Cash and cash equivalents		$	21.0		$	8.0		$	13.0		$	—
U.S. equity funds			74.4			—			74.4			—
International equity funds			166.8			—			166.8			—
Fixed income securities			264.9			—			264.9			—
International property fund			117.9			—			117.9			—
Total		$	645.0		$	8.0		$	637.0		$	—

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(Continued)

	Total			Fair Value Measurement as of December 30, 2011
	Carrying									Significant
	Value as of			Quoted Prices in			Significant Other			Unobservable
	December 30,			Active Markets			Observable Inputs			Inputs
(In millions)	2011			(Level 1)			(Level 2)			(Level 3)
Cash and cash equivalents		$	5.7		$	2.3		$	3.4		$	—
U.S. equity funds			78.8			—			78.8			—
International equity funds			162.6			—			162.6			—
Fixed income securities			223.3			—			223.3			—
International property fund			100.3			—			100.3			—
Total		$	570.7		$	2.3		$	568.4		$	—

As of December 28, 2012 and December 30, 2011, the fair values of our post-retirement benefit plan assets by the major asset categories are as follows:

	Total			Fair Value Measurement as of December 28, 2012
	Carrying									Significant
	Value as of			Quoted Prices in			Significant Other			Unobservable
	December 28,			Active Markets			Observable Inputs			Inputs
(In millions)	2012			(Level 1)			(Level 2)			(Level 3)
U.S. equity funds		$	0.8		$	—		$	0.8		$	—
International equity funds			0.7			—			0.7			—
International property fund			1.6			—			1.6			—
Total		$	3.1		$	—		$	3.1		$	—

	Total			Fair Value Measurement as of December 30, 2011
	Carrying									Significant
	Value as of			Quoted Prices in			Significant Other			Unobservable
	December 30,			Active Markets			Observable Inputs			Inputs
(In millions)	2011			(Level 1)			(Level 2)			(Level 3)
U.S. equity funds		$	1.0		$	—		$	1.0		$	—
International equity funds			0.6			—			0.6			—
International property fund			1.6			—			1.6			—
Total		$	3.2		$	—		$	3.2		$	—

Level 1:  The fair values of the plans’ interest in cash.

Level 2:  The fair values of the plans’ interest in common collective trust funds are based on quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets, inputs other than quoted prices that are observable for the asset, and/or inputs that are derived principally from or corroborated by observable market data by correlation or other means.  If the asset has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset.

Multiemployer Pension Plans

We participate in approximately 200 construction-industry multiemployer pension plans.  Generally, the plans provide defined benefits to substantially all employees covered by collective bargaining agreements.  Under ERISA, a contributor to a multiemployer plan is liable, upon termination or withdrawal from a plan, for its proportionate share of a plan’s unfunded vested liability.

Our aggregate contributions to these plans were $48.2 million, $40.7 million, and $50.8 million for the years ended December 28, 2012, December 30, 2011, and December 31, 2010, respectively.  At December 28, 2012, none of the plans in which we participate are individually significant to our consolidated financial statements.

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(Continued)

NOTE 15.  STOCKHOLDERS' EQUITY

Dividend Program

On February 24, 2012, our Board of Directors approved the initiation of a regular quarterly cash dividend program. Our Board of Directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date	Total Estimated Amount		Payment Date
(In millions, except per share data)
February 24, 2012	$	0.20	March 16, 2012	$	15.2	April 6, 2012
May 4, 2012	$	0.20	June 15, 2012	$	15.4	July 6, 2012
August 3, 2012	$	0.20	September 14, 2012	$	15.4	October 5, 2012
November 2, 2012	$	0.20	December 14, 2012	$	15.4	January 4, 2013

Equity Incentive Plans

As of December 28, 2012, approximately 3.5 million shares had been issued as restricted stock awards and 0.5 million shares of restricted stock units were issuable upon the vesting under our 2008 Equity Incentive Plan (the “2008 Plan”).  In addition, approximately 1.0 million shares remained reserved for future grant under the 2008 Plan.

Stock Repurchase Program

On February 25, 2011, our Board of Directors authorized an increase in the number of our common shares that we could repurchase in fiscal year 2011 from 3.0 million shares to 8.0 million shares to be effected through open market purchases or privately negotiated transactions as permitted by securities laws and other legal and contractual requirements, and subject to market conditions and other factors.  For fiscal years 2012, 2013 and 2014, the authorized shares under the repurchase program are 3.0 million shares, plus the number of shares equal to the difference between the number of shares authorized to be repurchased in the prior year and the actual number of shares repurchased during the prior year, not to exceed 6.0 million shares in aggregate.  The repurchase program will expire at the end of our 2014 fiscal year.  The Board of Directors may modify, suspend, extend or terminate the program at any time.

The following table summarizes our stock repurchase activities for the years ended December 28, 2012, December 30, 2011, and December 31, 2010:

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except average price paid per share)	2012			2011			2010
Shares of common stock repurchased			1.0			6.0			3.0
Average price paid per share		$	40.00		$	40.47		$	42.75
Cost of common stock repurchased		$	40.0		$	242.8		$	128.3

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(Continued)

Stock-Based Compensation

We recognize stock-based compensation expense, net of estimated forfeitures, over the vesting periods in “General and administrative expenses” and “Cost of revenues” in our Consolidated Statements of Operations.

The following table presents our stock-based compensation expense related to restricted stock awards and units, our employee stock purchase plan and the related income tax benefits recognized for the years ended December 28, 2012, December 30, 2011, and December 31, 2010:

	Year Ended
	December 28,		December 30,		December 31,
(In millions)	2012		2011		2010
Stock-based compensation expense:
Restricted stock awards and units	$	43.1	$	44.8	$	43.6
Employee stock purchase plan		0.5		0.5		0.4
Stock-based compensation expense	$	43.6	$	45.3	$	44.0
Stock-based compensation expense included in:
Cost of revenues	$	33.2	$	35.1	$	34.0
General and administrative expenses		10.4		10.2		10.0
Stock-based compensation expense	$	43.6	$	45.3	$	44.0
Total income tax benefits recognized in our net income related to stock-based compensation expense	$	16.0	$	17.3	$	16.9

Employee Stock Purchase Plan

Our Employee Stock Purchase Plan (“ESPP”) allows qualifying employees to purchase shares of our common stock through payroll deductions of up to 10% of their compensation, subject to Internal Revenue Code limitations, at a price of 95% of the fair market value as of the end of each of the six-month offering periods.  The offering periods commence on January 1 and July 1 of each year.

For the years ended December 28, 2012, December 30, 2011, and December 31, 2010, employees participating in our ESPP purchased approximately 0.1 million shares, 0.2 million shares, and 0.2 million shares, respectively.  Cash proceeds generated from employee stock option exercises and purchases by employees under our ESPP for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 were $8.9 million, $11.7 million, and $11.3 million, respectively.

Restricted Stock Awards and Units

Restricted stock awards and units generally vest over four years.  Vesting of some awards is subject to both service requirements and performance conditions.  Currently outstanding restricted stock awards and units with a performance condition vest upon the achievement of an annual net income target, established in the first quarter of the fiscal year preceding the vesting date.  Our awards are measured based on the stock price on the date that all of the key terms and conditions related to the award are known.  Restricted stock awards and units are expensed on a straight-line basis over their respective vesting periods subject to the probability of meeting performance and/or service requirements.

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(Continued)

As of December 28, 2012, we had estimated unrecognized stock-based compensation expense of $82.6 million related to nonvested restricted stock awards and units.  This expense is expected to be recognized over a weighted-average period of 2.6 years.  The following table summarizes the total fair value of vested shares, according to their contractual terms, and the grant date fair value of restricted stock awards and units granted during the years ended December 28, 2012 and December 30, 2011:

	December 28,		December 30,
(In millions)	2012		2011
Fair value of shares vested	$	42.0	$	41.8
Grant date fair value of restricted stock awards and units granted	$	54.3	$	42.1

A summary of the status of and changes in our nonvested restricted stock awards and units, according to their contractual terms, as of and for the year ended December 28, 2012, is presented below:

	Year Ended
	December 28, 2012
		Weighted-
	Shares	Average Grant
	(in millions)	Date Fair Value
Nonvested at December 30, 2011	2.4	$	42.86
Granted	1.4	$	36.79
Vested	(1.0)	$	41.69
Forfeited	(0.1)	$	42.44
Nonvested at December 28, 2012	2.7	$	40.03

Stock Options

A summary of the status and changes of the stock options, according to their contractual terms, is presented below:

						Weighted-
						Average
				Weighted-		Remaining		Aggregate
	Options			Average		Contractual		Intrinsic Value
	(in millions)			Exercise Price		Term (in years)		(in millions)
Outstanding and exercisable at January 1, 2010		0.7		$	22.99		3.46	$	16.5
Exercised		(0.1	)	$	21.03
Forfeited/expired/cancelled		—	†	$	18.13
Outstanding and exercisable at December 31, 2010		0.6		$	23.38		2.62	$	11.7
Exercised		(0.1	)	$	22.80
Forfeited/expired/cancelled		—	†	$	22.30
Outstanding and exercisable at December 30, 2011		0.5		$	23.55		1.83	$	5.8
Exercised		(0.2	)	$	22.29
Forfeited/expired/cancelled		—	†	$	24.36
Outstanding and exercisable at December 28, 2012		0.3		$	24.28		1.27	$	4.5

†   Represents fewer than fifty thousand shares.

The aggregate intrinsic value as of December 28, 2012 in the preceding table represents the total pre-tax intrinsic value, based on our closing market price of $38.71, which would have been received by the option holders had all option holders exercised their options on that date.

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(Continued)

For the years ended December 28, 2012, December 30, 2011 and December 31, 2010, the aggregate intrinsic value of stock options exercised, determined as of the date of option exercise, was $2.9 million, $2.5 million and $3.0 million, respectively.  Since all of our stock option awards were fully vested in fiscal year 2008, we did not have any stock-based compensation expense related to stock option awards or any unrecognized related expense.

NOTE 16.  SEGMENT AND RELATED INFORMATION

We operate our business through the following four segments:

·   Infrastructure & Environment Division provides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. federal government, state and local government agencies, and private sector clients in the U.S. and internationally.

·   Federal ServicesDivision provides services to various U.S. federal government agencies, primarily the Department of Defense.  These services include program management, planning, design and engineering, systems engineering and technical assistance, construction and construction management, operations and maintenance, IT services, and decommissioning and closure.

·   Energy & Construction Division provides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. federal government, state and local government agencies, and private sector clients in the U.S. and internationally.

·   Oil & Gas Division provides oilfield services, including rig transportation and fluid hauling services, facility and pipeline construction, module fabrication, and maintenance services, for the oil and gas industry in the U.S. and Canada.

These four segments operate under separate management groups and produce discrete financial information.  Their operating results also are reviewed separately by management.  The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.  The information disclosed in our consolidated financial statements is based on the four segments that comprise our current organizational structure.

Prior to the beginning of our 2012 fiscal year, we used segment contribution to assess performance and make decisions concerning resource allocation.  Segment contribution was defined as total segment operating income minus noncontrolling interests attributable to that segment, but before allocation of various segment expenses, including stock compensation expense, amortization of some, but not all, intangible assets, goodwill impairment, and other miscellaneous unallocated expenses.  Segment operating income represents net income before reductions for income taxes, noncontrolling interests, and interest expense.

Effective at the beginning of our 2012 fiscal year, we adopted a new measurement to assess performance and make decisions concerning resource allocation referred to as “URS operating income,” which is defined as segment operating income after reduction for pre-tax noncontrolling interests, but before the reduction of any pre-tax goodwill impairment charge.  This new measurement method minimizes the reconciling items between internal profit measurement and GAAP operating income.  For comparative purposes, we made reclassifications to the prior year’s data to conform them to the current period’s presentation.

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(Continued)

The following table presents summarized financial information for our reportable segments.  “Inter-segment, eliminations and other” in the following table includes eliminations of inter-segment sales and investments in subsidiaries.  The segment balance sheet information presented below is included for informational purposes only.  We do not allocate resources based upon the balance sheet amounts of individual segments.  Our long-lived assets consist primarily of property and equipment.

	Year Ended
	December 28,			December 30,			December 31,
(In millions)	2012			2011			2010
Revenues
Infrastructure & Environment (1)	$	3,792.1		$	3,760.9		$	3,248.5
Federal Services (2)		2,721.6			2,695.4			2,582.8
Energy & Construction		3,138.1			3,251.1			3,420.6
Oil & Gas (3)		1,475.1			—			—
Inter-segment, eliminations and other		(154.4	)		(162.4	)		(74.8	)
Total revenues	$	10,972.5		$	9,545.0		$	9,177.1
Equity in income of unconsolidated joint ventures
Infrastructure & Environment (1)	$	4.0		$	3.9		$	2.9
Federal Services (2)		6.4			6.2			5.9
Energy & Construction (4)		93.0			122.1			61.5
Oil & Gas (3)		4.2			—			—
Total equity in income of unconsolidated joint ventures	$	107.6		$	132.2		$	70.3
URS operating income (loss) (5)
Infrastructure & Environment (1)	$	218.8		$	222.0		$	223.8
Federal Services (2)		249.3			196.8			165.6
Energy & Construction		140.0			134.6			127.7
Oil & Gas (3)		62.3			—			—
Corporate (6)		(99.7	)		(79.5	)		(71.0	)
Total URS operating income (loss)	$	570.7		$	473.9		$	446.1
Operating income (loss) (7)
Infrastructure & Environment (1)	$	220.9		$	222.0		$	222.9
Federal Services (2)		249.3			(151.5	)		165.6
Energy & Construction		254.2			(214.4	)		226.9
Oil & Gas (3)		61.2			—			—
Corporate (6)		(99.7	)		(79.5	)		(71.0	)
Total operating income (loss)	$	685.9		$	(223.4	)	$	544.4
Capital expenditures
Infrastructure & Environment (1)	$	43.2		$	51.2		$	30.0
Federal Services (2)		5.5			4.8			5.6
Energy & Construction		19.0			14.8			15.9
Oil & Gas (3)		72.3			—			—
Corporate (6)		13.2			10.9			6.6
Total capital expenditures	$	153.2		$	81.7		$	58.1
Depreciation and amortization
Infrastructure & Environment (1)	$	56.5		$	55.0		$	42.2
Federal Services (2)		36.3			27.1			21.4
Energy & Construction		47.1			54.3			62.3
Oil & Gas (3)		87.1			—			—
Corporate (6)		6.6			6.3			7.6
Total depreciation and amortization	$	233.6		$	142.7		$	133.5

(1)   The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

(2)   The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

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(3)   The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

(4)   In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California.  The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders.  As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million in the third quarter of 2010.  During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

(5)   We are providing information regarding URS operating income (loss) by segment because management uses this information to assess performance and make decisions about resource allocation.

(6)   Corporate includes expenses related to corporate functions and acquisition-related expenses.

(7)   The operating income (loss) for the year ended December 30, 2011 included an $825.8 million goodwill impairment charge.  See Note 9, “Goodwill and Intangible Assets” for more information.

Reconciliations of segment contribution to segment operating income (loss) for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 are as follows:

	Year Ended December 28, 2012
	Infrastructure								Energy				Oil
	&				Federal				&				&
(In millions)	Environment				Services				Construction				Gas				Corporate				Consolidated
URS operating income (loss)		$	218.8			$	249.3			$	140.0			$	62.3			$	(99.7	)		$	570.7
Noncontrolling interests			2.1				—				114.2				(1.1	)			—				115.2
Operating income (loss)		$	220.9			$	249.3			$	254.2			$	61.2			$	(99.7	)		$	685.9
	Year Ended December 30, 2011
	Infrastructure								Energy				Oil
	&				Federal				&				&
(In millions)	Environment				Services				Construction				Gas				Corporate				Consolidated
URS operating income (loss)		$	222.0			$	196.8			$	134.6			$	—			$	(79.5	)		$	473.9
Noncontrolling interests			—				—				128.5				—				—				128.5
Goodwill impairment			—				(348.3	)			(477.5	)			—				—				(825.8	)
Operating income (loss)		$	222.0			$	(151.5	)		$	(214.4	)		$	—			$	(79.5	)		$	(223.4	)
	Year Ended December 31, 2010
	Infrastructure								Energy				Oil
	&				Federal				&				&
(In millions)	Environment				Services				Construction				Gas				Corporate				Consolidated
URS operating income (loss)		$	223.8			$	165.6			$	127.7			$	—			$	(71.0	)		$	446.1
Noncontrolling interests			(0.9	)			—				99.2				—				—				98.3
Operating income (loss)		$	222.9			$	165.6			$	226.9			$	—			$	(71.0	)		$	544.4

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Total investments in and advances to unconsolidated joint ventures and property and equipment, net of accumulated depreciation, are as follows:

	December 28,		December 30,
(In millions)	2012		2011
Infrastructure & Environment	$	8.1	$	6.3
Federal Services		5.7		5.1
Energy & Construction		124.5		96.3
Oil & Gas		140.0		—
Total investments in and advances to unconsolidated joint ventures	$	278.3	$	107.7
Infrastructure & Environment	$	141.0	$	140.5
Federal Services		36.6		46.2
Energy & Construction		60.1		61.8
Oil & Gas		422.9		—
Corporate		26.9		20.9
Total property and equipment, net of accumulated depreciation	$	687.5	$	269.4

Total assets by segment are as follows:

	December 28,		December 30,
(In millions)	2012		2011
Infrastructure & Environment	$	2,267.5	$	2,287.3
Federal Services		1,645.8		1,582.4
Energy & Construction		2,776.5		2,611.9
Oil & Gas		1,904.4		—
Corporate		192.3		381.0
Total assets	$	8,786.5	$	6,862.6

Geographic Areas

We provide services in many parts of the world.  Some of our services are provided to companies in other countries, but are served by our offices located in the U.S.  Generally, revenues related to such services are classified within the geographic area where the services are performed, rather than where the client is located.  Our revenues and net property and equipment at cost by geographic area are shown below:

	Years Ended
	December 28,			December 30,			December 31,
(In millions)	2012			2011			2010
Revenues
United States	$	8,640.2		$	8,329.7		$	8,385.4
Canada (1)		1,304.0			180.3			162.3
Other foreign countries		1,056.0			1,065.3			646.9
Eliminations		(27.7	)		(30.3	)		(17.5	)
Total revenues	$	10,972.5		$	9,545.0		$	9,177.1

(1)   Revenues from Canada exceeded 10% of our consolidated revenues for the year ended December 28, 2012 due to our acquisition of Flint in fiscal year 2012.

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	December 28,		December 30,
(In millions)	2012		2011
Property and equipment at cost, net (1)
United States	$	320.4	$	209.5
International:
Canada (2)		313.2		8.7
United Kingdom		24.5		27.2
Other foreign countries		29.4		24.0
Total international		367.1		59.9
Total property and equipment at cost, net	$	687.5	$	269.4

(1)   Property and equipment at cost, net is categorized by the location of incorporation of the legal entities.

(2)   Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

Major Customers and Other

Our largest clients are from our federal market sector.  Within this sector, we have multiple contracts with our two major customers:  the U.S. Army and Department of Energy (“DOE”).  For the purpose of analyzing revenues from major customers, we do not consider the combination of all federal departments and agencies as one customer.  The different federal agencies manage separate budgets.  As such, reductions in spending by one federal agency do not affect the revenues we could earn from another federal agency.  In addition, the procurement processes for federal agencies are not centralized, and procurement decisions are made separately by each federal agency.  The loss of the federal government, the U.S. Army, or DOE as clients, would have a material adverse effect on our business; however, we are not dependent on any single contract on an ongoing basis.  We believe that the loss of any single contract would not have a material adverse effect on our business.

Our revenues from the U.S. Army and DOE by division for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 are presented below:

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
The U.S. Army (1)
Infrastructure & Environment	$	128.4		$	141.7		$	167.0
Federal Services		1,495.8			1,351.1			1,408.7
Energy & Construction		130.8			199.5			346.6
Total U.S. Army	$	1,755.0		$	1,692.3		$	1,922.3
Revenues from the U.S. Army as a percentage of our consolidated revenues		16	%		18	%		21	%
DOE
Infrastructure & Environment	$	5.6		$	5.9		$	7.2
Federal Services		27.7			26.8			13.7
Energy & Construction		956.4			1,236.3			1,182.6
Total DOE	$	989.7		$	1,269.0		$	1,203.5
Revenues from DOE as a percentage of our consolidated revenues		9	%		13	%		13	%
Revenues from the federal market sector as a percentage of our consolidated revenues		40	%		49	%		49	%

(1)   The U.S. Army includes U.S. Army Corps of Engineers.

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NOTE 17.  COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, we and our affiliates are subject to various contractual disputes, governmental audits and investigations, and legal proceedings alleging, among other things, contractual, tortious or statutory breaches.  The final outcomes of these various matters cannot be predicted or estimated with certainty.  We are including information regarding the following matters:

·   USAID Egyptian Projects:  In March 2003, Washington Group International, Inc., a Delaware company, (“WGI Delaware”), a wholly owned subsidiary, was notified by the Department of Justice that the federal government was considering civil litigation against WGI Delaware for potential violations of the U.S. Agency for International Development (“USAID”) source, origin, and nationality regulations in connection with five of WGI Delaware’s USAID-financed host-country projects located in Egypt beginning in the early 1990s.  In November 2004, the federal government filed an action in the United States District Court for the District of Idaho against WGI Delaware, Contrack International, Inc., and MISR Sons Development S.A.E., an Egyptian construction company, asserting violations under the Federal False Claims Act, the Federal Foreign Assistance Act of 1961, as well as common law theories of payment by mistake and unjust enrichment.  The federal government seeks damages and civil penalties for violations of the statutes as well as a refund of the approximately $373.0 million paid to WGI Delaware under the specified contracts.  WGI Delaware has denied any liability in the action and contests the federal government’s damage allegations and its entitlement to recovery.  All USAID projects under the contracts have been completed and are fully operational.

In March 2005, WGI Delaware filed a motion in Idaho District Court to dismiss the federal government’s claims or to stay the Idaho action and also a motion in Bankruptcy Court in Nevada to dismiss the government’s claims for failure to give appropriate notice or otherwise preserve their claims.  In August 2005, the Bankruptcy Court ruled that all federal government claims were barred.  The federal government appealed the Bankruptcy Court's order to the United States District Court for the District of Nevada.  In March 2006, the Idaho District Court stayed that action during the pendency of the federal government's appeal of the Bankruptcy Court's ruling.  In December 2006, the Nevada District Court reversed the Bankruptcy Court’s order and remanded the matter back to the Bankruptcy Court for further proceedings.  WGI Delaware renewed its motion in Bankruptcy Court, and in November 2008, the Bankruptcy Court ruled that the federal government’s common law claims of unjust enrichment and payment by mistake are barred, and could no longer be pursued.  On April 24, 2012, the Bankruptcy Court ruled that the bulk of the federal government’s claims under the False Claims and the Federal Foreign Assistance Acts are not barred.  On November 7, 2012, WGI Delaware appealed the Bankruptcy Court’s decision to the Ninth Circuit Bankruptcy Appellate Panel.

WGI Delaware intends to continue to defend this matter vigorously; however, WGI Delaware cannot provide assurance that it will be successful in these efforts.  The potential range of loss and the resolution of these matters cannot be determined at this time primarily due to the very limited factual record that exists in light of our limited ability to evaluate discovery that has been conducted so far at this early stage of the Idaho litigation; the fact that the matter involves unique and complex bankruptcy, international, and federal regulatory legal issues; the uncertainty concerning legal theories and their potential resolution by the courts; and the duration of this matter, as well as a number of additional factors.

·   New Orleans Levee Failure Class Action Litigation:  From July 1999 through May 2005, Washington Group International, Inc., an Ohio company (“WGI Ohio”), a wholly owned subsidiary acquired by us on November 15, 2007, performed demolition, site preparation, and environmental remediation services for the U.S. Army Corps of Engineers on the east bank of the Inner Harbor Navigation Canal (the “Industrial Canal”) in New Orleans, Louisiana.  On August 29, 2005, Hurricane Katrina devastated New Orleans.  The storm surge created by the hurricane overtopped the Industrial Canal levee and floodwall, flooding the Lower Ninth Ward and other parts of the city.  Fifty-nine personal injury and property damage class action lawsuits were filed in Louisiana State and federal court against several defendants, including WGI Ohio, seeking $200.0 billion in damages plus attorneys’ fees and costs.  Plaintiffs are residents and property owners who claim to have incurred damages from the breach and failure of the hurricane protection levees and floodwalls in the wake of Hurricane Katrina.

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(Continued)

All 59 lawsuits were pleaded as class actions but none have yet been certified as class actions.  Along with WGI Ohio, the U.S. Army Corps of Engineers, the Board for the Orleans Levee District, and its insurer, St. Paul Fire and Marine Insurance Company were also named as defendants.  At this time WGI Ohio and the Army Corps of Engineers are the remaining defendants.  These 59 lawsuits, along with other hurricane-related cases not involving WGI Ohio, were consolidated in the United States District Court for the Eastern District of Louisiana (“District Court”).

Plaintiffs allege that defendants were negligent in their design, construction and/or maintenance of the New Orleans levees.  Specifically, as to WGI Ohio, plaintiffs allege that work WGI Ohio performed adjacent to the Industrial Canal damaged the levee and floodwall, causing or contributing to breaches and flooding.  WGI Ohio did not design, construct, repair or maintain any of the levees or the floodwalls that failed during or after Hurricane Katrina.  Rather, WGI Ohio performed work adjacent to the Industrial Canal as a contractor for the federal government.

WGI Ohio filed a motion for summary judgment, seeking dismissal on grounds that government contractors are immune from liability.  On December 15, 2008, the District Court granted WGI Ohio’s motion for summary judgment, but several plaintiffs appealed that decision to the United States Fifth Circuit Court of Appeals on April 27, 2009.  On September 14, 2010, the Court of Appeals reversed the District Court’s summary judgment decision and WGI Ohio’s dismissal, and remanded the case back to the District Court for further litigation.  On August 1, 2011, the District Court decided that the government contractor immunity defense would not be available to WGI Ohio at trial, but would be an issue for appeal.  Five of the cases were tried in District Court from September 12, 2012 through October 3, 2012.  A decision is expected in 2013.

WGI Ohio intends to continue to defend these matters vigorously; however, WGI Ohio cannot provide assurance that it will be successful in these efforts.  The potential range of loss and the resolution of these matters cannot be determined at this time primarily due to the unknown number of individual plaintiffs who are actually asserting claims against WGI Ohio; the uncertainty regarding the nature and amount of each individual plaintiff’s damage claims; uncertainty concerning legal theories and factual bases that plaintiffs may present and their resolution by courts or regulators; and uncertainty about the plaintiffs’ claims, if any, that might survive certain key motions of our affiliate, as well as a number of additional factors.

·   DOE Deactivation, Demolition, and Removal Project:  WGI Ohio executed a cost-reimbursable task order with the DOE in 2007 to provide deactivation, demolition and removal services at a New York State project site that during 2010 experienced contamination and performance issues.  In February 2011, WGI Ohio and the DOE executed a Task Order Modification that changed some cost-reimbursable contract provisions to at-risk.  The Task Order Modification, including subsequent amendments, requires the DOE to pay all project costs up to $105.9 million, requires WGI Ohio and the DOE to equally share in all project costs incurred from $105.9 to $145.9 million, and requires WGI Ohio to pay all project costs exceeding $145.9 million.  In addition, in September 2011, WGI Ohio voluntarily paid a civil penalty related to the contamination incident.

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(Continued)

Through December 28, 2012, WGI Ohio has incurred total project costs of $216.3 million and has recorded cumulative project losses of $15.1 million.  Due to unanticipated requirements and permitting delays by federal and state agencies, as well as delays and related ground stabilization activities caused by Hurricane Irene, WGI Ohio has been required to perform work outside the scope of the Task Order Modification.  Based on changes and delays to date, requests for equitable adjustment (“REA”) amounting to $47.1 million and proposals related to the hurricane-caused impacts and other directed changes in the amount of $105.1 million have been submitted to the DOE for approval.  WGI Ohio also expects to submit additional REAs of at least $11.0 million to the DOE in 2013.  Through December 28, 2012, the DOE authorized an additional $27.2 million of funding primarily related to the hurricane-caused impacts.  In early 2013, WGI Ohio submitted several certified claims against the DOE pursuant to the Contracts Disputes Acts seeking recovery of $100.8 million of the above unfunded REA and proposal costs and $4.5 million of fee on the expanded work scope.  The final project completion costs are not currently estimable due to continuing delays in permitting, other delays, and approval of a final project plan.  WGI Ohio can give no assurance that it will not be obligated to pay some or all of the REAs, non-funded hurricane-caused impacts, the other directed changes, and additional project completion costs, which would negatively impact our future results of operations.

·   Bolivian Mine Services Agreement:  In 2009, a mine service agreement performed by one of our wholly owned subsidiaries, Washington Group Bolivia, was unilaterally terminated for convenience by the mine owner.  The mine owner disputed the fair market value of mining equipment it was required to repurchase under the terms of the mine services agreement.  Subsequently, on November 16, 2010, Washington Group Bolivia received a formal claim asserting breaches of contractual obligations and warranties, including the failure to adhere to the requisite professional standard of care while performing the mine services agreement.  On June 17, 2011, Washington Group Bolivia received a formal demand for arbitration pursuant to the Rules of Arbitration of the International Chamber of Commerce asserting claims up to $52.6 million.  Washington Group Bolivia brought a $50 million counterclaim on August 3, 2012 against the mine owner asserting claims of wrongful termination and lost productivity.  Arbitration on the mine owner’s claims and Washington Group Bolivia’s counterclaims commenced and concluded in December 2012.  In the course of the arbitration proceedings, the mine owner has reduced its claims to approximately $32.2 million, while Washington Group Bolivia has refined its counterclaim amount to not more than $62.9 million.

Washington Group Bolivia intends to continue to defend this matter vigorously; however, we cannot provide assurance that we will be successful in these efforts.  While Washington Group Bolivia believes that the mine owner’s claims are largely without merit, the potential range of loss and the resolution of these matters cannot be determined at this time due to a number of factors, including the uncertainty of how the arbitration tribunal will apply the multiple legal theories and factual bases for the parties’ respective claims and defenses and the added complexity that comes from the fact that the parties, project location and applicable law span multiple countries and jurisdictions.

·   Canadian Pipeline Contract:  In January 2010, a pipeline owner filed an action in the Court of Queen’s Bench of Alberta, Canada against Flint, a company acquired by us in May 2012, as well as against a number of other defendants, alleging that the defendants negligently provided pipe coating and insulation system services, engineering, design services, construction services, and other work, causing damage to and abandonment of the line.  The pipeline owner alleges it has suffered approximately C$85.0 million in damages in connection with the abandonment and replacement of the pipeline.  Flint was the construction contractor on the pipeline project.  Other defendants were responsible for engineering and design-services and for specifying and providing the actual pipe, insulation and coating materials used in the line.  In January 2011, the pipeline owner served a Statement of Claim on Flint and, in September 2011, Flint filed a Statement of Defense denying that the damages to the coating system of the pipeline were caused by any negligence or breach of contract of Flint.  Flint believes the damages were caused or contributed to by the negligence of one or more of the codefendants and/or by the negligent operation of the pipeline owner.

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(Continued)

Flint intends to continue to defend this matter vigorously; however, it cannot provide assurance that it will be successful, in whole or in part, in these efforts.  The potential range of loss and the resolution of this matter cannot be determined at this time primarily due to the early stage of the discovery; the substantial uncertainty regarding the actual cause of the damage to or loss of the line; the nature and amount of each individual damage claim against the various defendants; and the uncertainty concerning legal theories and factual bases that customer may present against all or some of the defendants.

·   U.K. Joint Venture:  On April 12, 2010, one of our U.K. joint ventures sent several bags of low level non-exempt radioactive waste to a waste disposal facility that was not licensed to handle such waste.  On November 15, 2012, the U.K. Environment Agency and the U.K. Department for Transport initiated environmental regulatory proceedings against our U.K. joint venture in the Workington Magistrates’ Court under the U.K. Environmental Permitting Regulations 2010, the Radioactive Substances Act 1993, the Carriage of Dangerous Goods and the use of Transportable Pressure Equipment Regulations 2009.  On February 7, 2013, our U.K. joint venture entered a plea of guilty before the Magistrates’ Court and the matter was referred to the Crown Court for sentencing.  The potential range of loss and the resolution of this matter cannot be determined at this time primarily due to the fact that the matter involves unique and complex environmental and regulatory legal issues, as well as a number of additional factors.

The resolution of outstanding claims is subject to inherent uncertainty, and it is reasonably possible that resolution of any of the above outstanding claims or legal proceedings could have a material adverse effect on us.  Our evaluation of the impact of pending actions could change in the future and unfavorable outcomes and/or defense costs, depending upon the amount and timing, could have a material adverse effect on our results of operations or cash flows for future periods.

Insurance

Generally, our insurance program covers workers’ compensation and employer’s liability, general liability, automobile liability, professional errors and omissions liability, property, marine property and liability, and contractor’s pollution liability (in addition to other policies for specific projects).  Our insurance program includes deductibles or self-insured retentions for each covered claim.  In addition, our insurance policies contain exclusions and sublimits that insurance providers may use to deny or restrict coverage.  Excess liability, contractor’s pollution liability, and professional liability insurance policies provide for coverages on a “claims-made” basis, covering only claims actually made and reported during the policy period currently in effect.  Thus, if we do not continue to maintain these policies, we will have no coverage for claims made after the termination date even for claims based on events that occurred during the term of coverage.  While we intend to maintain these policies, we may be unable to maintain existing coverage levels.

Guarantee Obligations and Commitments

As of December 28, 2012, we had the following guarantee obligations and commitments:

We have agreed to indemnify one of our joint venture partners up to $25.0 million for any potential losses, damages, and liabilities associated with lawsuits in relation to general and administrative services we provide to the joint venture.  Currently, we have not been advised of any indemnified claims under this guarantee.

We have guaranteed a letter of credit issued on behalf of one of our consolidated joint ventures.  The total amount of the letter of credit was $0.9 million as of December 28, 2012.

As of December 28, 2012, we had $36.3 million in bank guarantees outstanding under foreign credit facilities and other banking arrangements.

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(Continued)

We also maintain a variety of commercial commitments that are generally made to support provisions of our contracts.  In addition, in the ordinary course of business, we provide letters of credit to clients and others against advance payments and to support other business arrangements.  We are required to reimburse the issuers of letters of credit for any payments they make under the letters of credit.

In the ordinary course of business, we may provide performance assurances and guarantees related to our services.  For example, these guarantees may include surety bonds, arrangements among our client, a surety, and us to ensure we perform our contractual obligations pursuant to our client agreement.  If our services under a guaranteed project are later determined to have resulted in a material defect or other material deficiency, then we may be responsible for monetary damages or other legal remedies.  When sufficient information about claims on guaranteed projects is available and monetary damages or other costs or losses are determined to be probable, we recognize such guarantee losses.

Lease Obligations

Total rental expense included in operations for operating leases for the years ended December 28, 2012, December 30, 2011, and December 31, 2010, totaled $210.0 million, $188.5 million, and $192.5 million, respectively.  Some of the operating leases are subject to renewal options and escalation based upon property taxes and operating expenses.  These operating lease agreements expire at varying dates through 2026.  Obligations under operating leases include office and other equipment rentals.

Obligations under non-cancelable operating lease agreements were as follows:

(In millions)	Operating Leases
2013	$	224.9
2014		151.7
2015		116.0
2016		86.6
2017		58.9
Thereafter		162.9
Total minimum lease payments	$	801.0

Restructuring Costs

For the year ended December 28, 2012, we did not incur restructuring charges.  For the years ended December 30, 2011 and December 31, 2010, we recorded restructuring charges of $5.5 million and $10.6 million, respectively, in our Consolidated Statement of Operations, which consisted primarily of costs for severance and associated benefits and the cost of facility closures.  The majority of the restructuring costs resulted from the integration of Scott Wilson into our existing Infrastructure & Environment’s U.K. and European business and necessary responses to reductions in market opportunities in Europe.

During fiscal year 2011, we made $12.9 million of payments related to these restructuring plans.  As of December 30, 2011 and December 31, 2010, our restructuring reserves were $3.8 million and $11.6 million, respectively.  As of December 28, 2012, no amounts remain outstanding.

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(Continued)

NOTE 18.  OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The accumulated balances and reporting period activities related to each component of other comprehensive income (loss) are summarized as follows:

(In millions)	Pension and Post-retirement Related Adjustments (1)			Foreign Currency Translation Adjustments			Loss on Derivative Instruments			Unrealized Gain (Loss) on Interest Rate Swaps			Accumulated Other Comprehensive Income (Loss)
Balances at January 1, 2010	$	(45.4	)	$	0.4		$	—		$	(4.2	)	$	(49.2	)
Pre-tax amount		(5.1	)		8.8			—			7.0			10.7
Tax benefit (expense)		4.4			—			—			(2.8	)		1.6
Total 2010 adjustments, net of tax		(0.7	)		8.8			—			4.2			12.3
Balances at December 31, 2010	$	(46.1	)	$	9.2		$	—		$	—		$	(36.9	)
Pre-tax amount		(73.4	)		(11.2	)		—			—			(84.6	)
Tax benefit (2)		10.7			—			—			—			10.7
Total 2011 adjustments, net of tax		(62.7	)		(11.2	)		—			—			(73.9	)
Balances at December 30, 2011	$	(108.8	)	$	(2.0	)	$	—		$	—		$	(110.8	)
Pre-tax amount		(39.9	)		24.8			(1.0	)		—			(16.1	)
Tax benefit		13.3			—			0.4			—			13.7
Total 2012 adjustments, net of tax		(26.6	)		24.8			(0.6	)		—			(2.4	)
Balances at December 28, 2012	$	(135.4	)	$	22.8		$	(0.6	)	$	—		$	(113.2	)

(1)   For fiscal year 2012, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $45.6 million of net loss arising during the year, $7.4 million of amortization of prior service credit and net loss, and $1.7 million of before-tax effect of changes in foreign currency exchange rates.  For fiscal year 2011, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $80.9 million of net loss arising during the year, $4.1 million of amortization of prior service credit and net loss, and $1.9 million of before-tax effect of changes in foreign currency exchange rates.  For fiscal year 2010, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $5.3 million of net loss arising during the year, $0.4 million of amortization of prior service credit and net loss, and $0.1 million of before-tax effect of changes in foreign currency exchange rates.

(2)   The tax benefit has been reduced by a valuation allowance of $11.6 million in 2011.

158

URS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

NOTE 19.  RECEIVABLE AND DEFERRED INCOME TAX VALUATION ALLOWANCES

Receivable allowances are comprised of allowances for amounts that may become uncollectable or unrealizable in the future.  We determine these amounts based on historical experience and other currently available information.  A valuation allowance for deferred income taxes is established when it is more likely than not that net deferred tax assets will not be realized.

The following table summarizes the activities in the receivable allowances and the deferred income tax valuation allowance from the beginning of the periods to the end of the periods.

(In millions)	Balance at the Beginning of the Period			Additions (Charged to Bad Debt Expense)			Additions (Charged to Other Accounts) (1)			Deductions (2)				Other (3)			Balance at the End of the Period
Year ended December 28, 2012
Receivable allowances		$	43.1		$	6.6		$	27.4		$	(7.4	)		$	—		$	69.7
Deferred income tax valuation allowance		$	124.0		$	—		$	3.1		$	(1.1	)		$	11.6		$	137.6
Year ended December 30, 2011
Receivable allowances		$	42.8		$	2.8		$	16.1		$	(18.6	)		$	—		$	43.1
Deferred income tax valuation allowance		$	104.2		$	—		$	23.5		$	(15.3	)		$	11.6		$	124.0
Year ended December 31, 2010
Receivable allowances		$	47.7		$	6.7		$	8.9		$	(20.5	)		$	—		$	42.8
Deferred income tax valuation allowance		$	87.6		$	—		$	21.4		$	(8.0	)		$	3.2		$	104.2

(1)   These additions were primarily charged to revenues or income tax expense.

(2)   Deductions to the deferred income tax valuation allowance were primarily attributed to foreign and state NOL expirations, change in tax rates and the use of federal and state NOLs.

(3)   Other adjustments to the deferred income tax valuation allowance during the year ended December 28, 2012 were attributable to acquired deferred taxes through the Flint acquisition.  For the year ended December 30, 2011, other adjustments to the deferred income tax valuation allowance were charged to other comprehensive income.  For the year ended December 31, 2010, other adjustments to the deferred income tax valuation allowance were attributable to acquired deferred taxes on foreign net operating losses through the Scott Wilson acquisition.

159

URS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

NOTE 20.  SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table sets forth selected quarterly financial data for the years ended December 28, 2012 and December 30, 2011.  The selected quarterly financial data presented below should be read in conjunction with the rest of the information in this report.

	2012 Quarters Ended
(In millions, except per share data)	March 30				June 29				September 28				December 28
Revenues		$	2,361.5			$	2,690.7			$	2,947.6			$	2,972.7
Cost of revenues			(2,203.2	)			(2,527.5	)			(2,753.3	)			(2,810.5	)
Acquisition-related expenses (1)			(5.6	)			(11.3	)			0.8				—
Operating income (loss) (2)			161.4				149.5				203.6				171.4
Other income (expense) (3)			2.5				(9.2	)			10.8				(3.6	)
Income tax benefit (expense)			(48.6	)			(40.5	)			(66.1	)			(34.7	)
Net income including noncontrolling interests			105.5				79.1				127.8				113.4
Noncontrolling interests in income of consolidated subsidiaries			(25.8	)			(25.5	)			(21.1	)			(42.8	)
Net income attributable to URS			79.7				53.6				106.7				70.6
Earnings per share:
Basic		$	1.08			$	0.72			$	1.43			$	0.95
Diluted		$	1.07			$	0.72			$	1.43			$	0.95
Weighted-average shares outstanding:
Basic			74.0				74.2				74.5				74.5
Diluted			74.3				74.6				74.6				74.6
	2011 Quarters Ended
(In millions, except per share data)	April 1				July 1				September 30				December 30
Revenues		$	2,319.8			$	2,360.3			$	2,471.7			$	2,393.2
Cost of revenues			(2,202.7	)			(2,228.3	)			(2,300.1	)			(2,257.7	)
Acquisition-related expenses			—				(1.0	)			—				—
Restructuring costs (4)			—				—				—				(5.5	)
Goodwill impairment (5)			—				—				(798.1	)			(27.7	)
Operating income (6)			132.1				150.6				(620.2	)			114.1
Income tax benefit (expense)			(39.0	)			(45.5	)			39.5				(46.8	)
Net income (loss) including noncontrolling interests			87.9				100.0				(585.8	)			60.6
Noncontrolling interests in income of consolidated subsidiaries			(25.8	)			(33.2	)			(37.3	)			(32.2	)
Net income (loss) attributable to URS			62.1				66.8				(623.1	)			28.4
Earnings (loss) per share:
Basic		$	0.79			$	0.87			$	(8.05	)		$	0.37
Diluted		$	0.79			$	0.86			$	(8.05	)		$	0.37
Weighted-average shares outstanding:
Basic			78.4				77.2				77.4				76.3
Diluted			78.8				77.7				77.4				76.4

(1)   For the year ended December 28, 2012, we recorded acquisition-related expenses in connection with our acquisition of Flint.  See further discussion in Note 8, “Acquisitions.”

160

URS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

(2)   For the first quarter of 2012, we revised our operating income from $163.9 million, as previously reported in our 10-Q, to $161.4 million due to the reclassification of a $2.5 million gain recognized on foreign currency forward contracts from “General and administrative expenses” to “Other income (expenses)” on our Consolidated Statements of Operations.  This revision had no impact on net income attributable to URS or EPS.

(3)   During fiscal 2012, “Other income (expenses)” represents foreign currency gains (losses) recognized on intercompany financing arrangements and foreign currency forward contracts.  See further discussion in Note 11, “Fair Value of Debt Instruments and Derivative Instruments.”

(4)   For the year ended December 30, 2011, we recorded restructuring costs resulting from the integration of Scott Wilson into our existing U.K. and European business and necessary responses to reductions in market opportunities in Europe.  See further discussion in Note 17, “Commitments and Contingencies.”

(5)   For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million.  On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively.

During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million.  On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively.  See further discussion in Note 9, “Goodwill and Intangible Assets.”

(6)   In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California.  The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders.  As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million or $0.18 per share on an after-tax basis in the third quarter of 2010.  During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

161

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.  CONTROLS AND PROCEDURES

Attached as exhibits to this Form 10-K are certifications of our CEO and CFO, which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  This “Controls and Procedures” section includes information concerning the controls and controls evaluation referred to in the certifications.  Item 8, “Consolidated Financial Statements and Supplementary Data,” of this report sets forth the report of PricewaterhouseCoopers LLP, our independent registered public accounting firm, regarding its audit of the effectiveness of our internal control over financial reporting.  This section should be read in conjunction with the certifications and the PricewaterhouseCoopers LLP report for a more complete understanding of the topics presented.

Evaluation of Disclosure Controls and Procedures

Based on our management’s evaluation, with the participation of our CEO and CFO, of our “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), our CEO and CFO have concluded that, because of the material weakness described below, our disclosure controls and procedures were not effective as of the end of the period covered by this report, to provide reasonable assurance that the information required to be disclosed by us in the reports that we filed or submitted to the SEC under the Exchange Act were (1) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including our principal executive and principal financial officers, to allow timely decisions regarding required disclosures.  In response to the material weakness, management’s subsequent testing of manual journal entries has not identified any journal entries that appear to be inappropriate or fraudulent.  Management has communicated the results of its assessment of its disclosure controls and procedures to the Audit Committee of our Board of Directors.

Changes in Internal Control over Financial Reporting

We acquired Flint on May 14, 2012 and are currently in the process of integrating it into our existing internal controls and procedures; however, management’s evaluation of the effectiveness of our internal control over financial reporting does not yet include Flint.  There were no other changes in our internal control over financial reporting during the year ended December 28, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management’s Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as that term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f).  Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (GAAP).  Internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Management, with the participation of our CEO and CFO, assessed our internal control over financial reporting as of December 28, 2012, the end of our fiscal year.  Management based its assessment on criteria established in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Management’s assessment included evaluation and testing of the design and operating effectiveness of key financial reporting controls, process documentation, accounting policies, and our overall control environment.

162

Based on management’s assessment, management has concluded that the Company did not maintain effective control over financial reporting as of December 28, 2012 because of the material weakness described below.  A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

Material Weakness Related to Journal Entries.  We did not maintain effective internal control over financial reporting as some key accounting personnel have the ability to prepare and post journal entries without an independent review by someone without the ability to prepare and post journal entries.  Specifically, our internal controls over journal entries were not designed effectively to provide reasonable assurance that journal entries were appropriately recorded or that they were properly reviewed for validity, accuracy, and completeness for substantially all of the key accounts and disclosures.  While this control deficiency did not result in any audit adjustments or misstatements, it could result in a misstatement of the aforementioned account balances or disclosures that would result in a material misstatement to the annual or interim consolidated financial statements that would not be prevented or detected.

Management has elected to exclude Flint from its assessment of internal control over financial reporting as of December 28, 2012 because we acquired Flint in a business combination on May 14, 2012.  Flint is a wholly-owned subsidiary of URS, whose total assets and total revenues represented 12% and 13%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 28, 2012.

Our independent registered public accounting firm, PricewaterhouseCoopers LLP, audited the effectiveness of the company’s internal control over financial reporting at December 28, 2012 as stated in their report appearing under Item 8 of this report.

Remediation Plan

We are currently reviewing our journal entry process.  We intend to modify access to our accounting systems to assure that, prior to posting of journal entries to our ledgers, individuals without prepare-and-post access review all journal entries for validity, accuracy and completeness, particularly related to accounts where the person who prepares the journal entries is the same person who reconciles the corresponding accounts.

Inherent Limitations on Effectiveness of Controls

The company’s management, including the CEO and CFO, has designed our disclosure controls and procedures and our internal control over financial reporting to provide reasonable assurances that the controls’ objectives will be met.  However, management does not expect that disclosure controls and procedures or our internal control over financial reporting will prevent or detect all error and all fraud.  A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met.  The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.  Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the company have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.  Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls.  The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any system’s design will succeed in achieving its stated goals under all potential future conditions.  Projections of any evaluation of a system’s control effectiveness into future periods are subject to risks.  Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

ITEM 9B.  OTHER INFORMATION

None.

163

PART III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Incorporated by reference from the information under the captions “Proposal – Election of Directors,” “Section 16(a) Beneficial Ownership Reporting Compliance” and “Information About The Board of Directors” in our definitive proxy statement for the 2013 Annual Meeting of Stockholders and from Item 1–“Executive Officers of the Registrant” in Part I above.

ITEM 11.  EXECUTIVE COMPENSATION

Incorporated by reference from the information under the captions “Executive Compensation,” “Compensation Committee Interlocks And Insider Participations,” “Proposal – Advisory Vote on Executive Compensation,” “Compensation Committee Report,” (which report shall be deemed to be “furnished” and not “filed” with the SEC) and “Information About The Board of Directors” in our definitive proxy statement for the 2013 Annual Meeting of Stockholders.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Incorporated by reference from the information under the captions “Security Ownership Of Certain Beneficial Owners And Management” and “Equity Compensation Plan Information” in our definitive proxy statement for the 2013 Annual Meeting of Stockholders.

Information regarding our stock-based compensation awards outstanding and available for future grants as of December 28, 2012 is presented in Note 15, “Stockholders' Equity” to our “Consolidated Financial Statements and Supplementary Data” included under Item 8 of this report.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Incorporated by reference from the information contained under the caption “Certain Relationships And Related Person Transactions” and “Information About The Board of Directors” in our definitive proxy statement for the 2013 Annual Meeting of Stockholders.

ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES

Incorporated by reference from the information under the captions “Proposal - Ratification Of Selection Of Our Independent Registered Public Accounting Firm,” in our definitive proxy statement for the 2013 Annual Meeting of Stockholders.

164

PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a)   Documents Filed as Part of this Report.

(1)   Financial Statements and Supplementary Data

·   Report of Independent Registered Public Accounting Firm

·   Consolidated Balance Sheets as of December 28, 2012 and December 30, 2011

·   Consolidated Statements of Operations for the year ended December 28, 2012, the year ended December 30, 2011, and the year ended December 31, 2010

·   Consolidated Statements of Comprehensive Income for the year ended December 28, 2012, the year ended December 30, 2011, and the year ended December 31, 2010

·   Consolidated Statements of Changes in Stockholders’ Equity for the year ended December 28, 2012, the year ended December 30, 2011, and the year ended December 31, 2010

·   Consolidated Statements of Cash Flows for the year ended December 28, 2012, the year ended December 30, 2011, and the year ended December 31, 2010

·   Notes to Consolidated Financial Statements.

(2)   Schedules are omitted because they are not applicable, not required or because the required information is included in the Consolidated Financial Statements or Notes thereto.

(3)   Exhibits

165

		Incorporated by Reference (Exchange Act Filings Located at File No. 001-07567)
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date	Filed Herewith
2.1	Implementation Agreement between Universe Bidco Limited, URS Corporation and Scott Wilson Group plc., dated as of June 28, 2010.	8-K	2.2	6/29/2010
2.2	Arrangement Agreement between URS Corporation and Flint Energy Services Ltd., dated as of February 20, 2012.	8-K	2.1	2/21/2012
3.1	Restated Certificate of Incorporation of URS Corporation, as filed with the Secretary of State of Delaware on September 9, 2008.	8-K	3.01	9/11/2008
3.5	Bylaws of URS Corporation as amended on February 26, 2010.	10-Q	3.02	5/12/2010
4.1	Credit Agreement dated as of October 19, 2011 among URS Corporation, and certain subsidiaries, as Borrowers, Wells Fargo Bank, National Association, as Administrative Agent, Swing Line Lender and an L/C Issuer, Bank of America, N.A., BNP Paribas, and Citibank, N.A., as Syndication Agents, Mizuho Corporation Bank, Ltd., as Documentation Agent and the other lenders party hereto, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, BNP Paribas Securities Corp., and Citigroup Global Markets Inc., as Joint Lead Arrangers, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, as Joint Book Managers.	8-K	4.1	10/20/2011
4.2	Indenture, dated March 15, 2012, between URS Corporation, URS Fox U.S. LP, and U.S. Bank National Association.	8-K	4.01	3/20/2012
4.3	First Supplemental Indenture, dated March 15, 2012, by and among URS Corporation, URS Fox U.S. LP, the additional guarantor parties thereto and U.S. Bank National Association, including the form of the Issuers’ 3.850% Senior Notes due 2017.	8-K	4.02	3/20/2012
4.4	Second Supplemental Indenture, dated March 15, 2012, by and among URS Corporation, URS Fox U.S. LP, the additional guarantor parties thereto and U.S. Bank National Association, including the form of the Issuers’ 5.000% Senior Notes due 2022.	8-K	4.03	3/20/2012
4.5	Third Supplemental Indenture, dated as of May 14, 2012, by and among URS Corporation, URS Fox U.S. LP, the additional guarantor parties thereto and U.S. Bank National Association.	8-K	4.6	5/18/2012
4.6	Fourth Supplemental Indenture, dated as of September 24, 2012, by and among URS Corporation, URS Fox U.S. LP, the additional guarantor parties thereto and U.S. Bank National Association.	8-K	4.2	9/26/2012
4.7	Indenture, dated as of June 8, 2011, by and among Flint Energy Services Ltd., Computershare Trust Company of Canada and the guarantors listed on the signature pages thereto.	8-K	4.1	5/18/2012
4.8	Supplemental Indenture, dated as of October 20, 2011, among Flint Energy Services Ltd., Computershare Trust Company of Canada, Carson Energy Services Ltd. and Supreme Oilfield Construction Ltd.	8-K	4.2	5/18/2012

166

		Incorporated by Reference (Exchange Act Filings Located at File No. 001-07567)
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date	Filed Herewith
4.9	Second Supplemental Indenture, dated as of May 14, 2012, among Flint Energy Services Ltd. and Computershare Trust Company of Canada.	8-K	4.3	5/18/2012
4.10	Third Supplemental Indenture, dated as of May 14, 2012, among Flint Energy Services Ltd., URS Corporation, URS Fox US LP, the additional guarantor parties thereto and Computershare Trust Company of Canada.	8-K	4.4	5/18/2012
4.11	Fourth Supplemental Indenture, dated as of May 15, 2012, among Flint Energy Services Ltd. and Computershare Trust Company of Canada.	8-K	4.5	5/18/2012
4.12	Fifth Supplemental Indenture, dated as of September 24, 2012, among Flint Energy Services Ltd., the additional guarantor parties thereto and Computershare Trust Company of Canada.	8-K	4.1	9/26/2012
4.13	Registration Rights Agreement, dated as of March 15, 2012, among the Issuers, the Guarantors, Citibank Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. LLC.	8-K	4.04	3/20/2012
4.14	Form of Universe Bidco Limited Loan Note Instrument constituting up to £30,000,000 Floating Range Loan Notes 2015.	10-Q	4.2	11/9/2010
4.15	Specimen Common Stock Certificate, filed as an exhibit to our registration statement on Form S-1 or amendments thereto.	S-1	4.1	6/5/1991
10.1 *	Employee Stock Purchase Plan of URS Corporation approved as of May 22, 2008.	DEF 14A	Appendix C	4/22/2008
10.2 *	URS Corporation Amended and Restated 1999 Equity Incentive Plan, dated as of September 30, 2006.	8-K	10.2	9/13/2006
10.3 *	URS Corporation 2008 Equity Incentive Plan, approved on May 22, 2008.	8-K	10.1	5/23/2008
10.4 *	URS Corporation 2008 Equity Incentive Plan, as amended on May 26, 2010.	10-Q	10.1	8/10/2010
10.5 *	URS Corporation 2008 Equity Incentive Plan, as amended on May 26, 2011.	8-K	10.1	6/1/2011
10.6 *	URS Corporation 2008 Equity Incentive Plan, amended on May 24, 2012.	8-K	10.1	5/30/2012
10.7 *	Non-Executive Directors Stock Grant Plan of URS Corporation, adopted December 17, 1996.	10-K	10.5	1/14/1997
10.8 *	Selected Executive Deferred Compensation Plan of URS Corporation.	S-1	10.3	6/5/1991
10.9 *	URS Corporation Restated Incentive Compensation Plan.	8-K	10.1	3/31/2009
10.10 *	URS Corporation Restated Incentive Compensation Plan 2012 Plan Year Summary.	8-K	10.1	4/2/2012
10.11 *	Description of Base Salary, 2012 Performance Metrics and Target Bonuses.	8-K	N/A	4/2/2012
10.12 *	Non-Executive Directors Stock Grant Plan, as amended.	10-Q	10.1	3/17/1998
10.13 *	EG&G Technical Services, Inc. Amended and Restated Employees Retirement Plan.	10-Q	10.3	5/12/2010
10.14 *	First Amendment to the EG&G Technical Services, Inc. Employees Retirement Plan.	10-Q	10.4	11/12/2009
10.15 *	Second Amendment to the EG&G Technical Services, Inc. Employees Retirement Plan.	10-Q	10.5	11/12/2009
10.16 *	Third Amendment to the EG&G Technical Services, Inc. Employees Retirement Plan.	10-Q	10.6	11/12/2009

167

		Incorporated by Reference (Exchange Act Filings Located at File No. 001-07567)
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date	Filed Herewith
10.17 *	Fourth Amendment to the EG&G Technical Services, Inc. Employees Retirement Plan.	10-Q	10.4	5/12/2010
10.18 *	Fifth Amendment to the EG&G Technical Services, Inc. Employees Retirement Plan.	10-Q	10.5	5/12/2010
10.19 *	Sixth Amendment to the EG&G Technical Services, Inc. Employees Retirement Plan.	10-Q	10.6	5/12/2010
10.20 *	Seventh Amendment to the URS Federal Technical Services, Inc. Employees Retirement Plan.	10-Q	10.5	5/10/2011
10.21 *	Eighth Amendment to the URS Federal Technical Services, Inc. Employees Retirement Plan.				X
10.22 *	Ninth Amendment to the URS Federal Technical Services, Inc. Employees Retirement Plan.				X
10.23 *	Amended and Restated Employment Agreement, between URS Corporation and Martin M. Koffel, dated as of September 5, 2003.	10-K	10.10	1/22/2004
10.24 *	First Amendment to the Amended and Restated Employment Agreement between URS Corporation and Martin M. Koffel, dated as of December 7, 2006.	8-K	10.1	12/8/2006
10.25 *	Second Amendment to the Amended and Restated Employment Agreement between URS Corporation and Martin M. Koffel, dated as of December 10, 2008.	8-K	10.1	12/10/2008
10.26 *	Third Amendment to the Amended and Restated Employment Agreement between URS Corporation and Martin M. Koffel, dated as of December 13, 2011.	8-K	10.1	12/14/2011
10.27 *	Amended and Restated Supplemental Executive Retirement Agreement between URS Corporation and Martin M. Koffel, dated as of December 7, 2006.	8-K	10.3	12/8/2006
10.28 *	First Amendment to the Amended and Restated Supplemental Executive Retirement Agreement between URS Corporation and Martin M. Koffel, dated as of December 10, 2008.	8-K	10.2	12/10/2008
10.29 *	Employment Agreement between URS Corporation and Joseph Masters, dated as of September 8, 2000.	10-K	10.14	1/18/2001
10.30 *	First Amendment to Employment Agreement between URS Corporation and Joseph Masters, dated as of August 11, 2003.	10-K	10.15	1/22/2004
10.31 *	Second Amendment to Employment Agreement between URS Corporation and Joseph Masters, dated as of August 20, 2004.	10-K	10.17	1/13/2005
10.32 *	Fourth Amendment to Employment Agreement between URS Corporation and Joseph Masters, dated as of November 15, 2005.	8-K	10.1	11/18/2005
10.33 *	Fifth Amendment to Employment Agreement between URS Corporation and Joseph Masters, dated as of August 1, 2008.	10-Q	10.6	8/6/2008
10.34 *	Sixth Amendment to Employment Agreement between URS Corporation and Joseph Masters, dated as of November 26, 2012.				X
10.35 *	First Amendment to Employment Agreement between URS Corporation and Reed N. Brimhall, dated as of August 1, 2008.	10-Q	10.9	8/6/2008
10.36 *	Revised Compensatory Arrangement for Reed N. Brimhall.	10-Q	10.3	11/12/2009

168

		Incorporated by Reference (Exchange Act Filings Located at File No. 001-07567)
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date	Filed Herewith
10.37 *	Second Amendment to Employment Agreement between URS Corporation and Reed N. Brimhall, dated as of November 28, 2012.				X
10.38 *	Employment Agreement between URS Corporation and Gary V. Jandegian, dated as of January 29, 2004.	10-Q	10.1	3/15/2004
10.39 *	First Amendment to Employment Agreement between URS Corporation and Gary V. Jandegian, dated as of August 1, 2008.	10-Q	10.7	8/6/2008
10.40 *	Second Amendment to Employment Agreement between URS Corporation and Gary V. Jandegian, dated as of November 28, 2012.				X
10.41 *	Amended and Restated Employment Agreement between URS Corporation, a Nevada corporation and Thomas W. Bishop, dated as of June 1, 2011.	10-Q	10.2	8/9/2011
10.42 *	First Amendment to Employment Agreement between URS Corporation and Thomas W. Bishop, dated as of November 28, 2012.				X
10.43 *	Employment Agreement between EG&G Technical Services, Inc. and Randall A. Wotring, dated as of November 19, 2004.	8-K	10.1	11/24/2004
10.44 *	First Amendment to Employment Agreement between EG&G Technical Services, Inc. and Randall A. Wotring, dated as of August 1, 2008.	10-Q	10.8	8/6/2008
10.45 *	Second Amendment to Employment Agreement between EG&G Technical Services, Inc. and Randall A. Wotring, dated as of November 27, 2012.				X
10.46 *	Employment Agreement between URS Corporation and H. Thomas Hicks, dated as of May 31, 2005.	8-K	10.2	5/31/2005
10.47 *	First Amendment to Employment Agreement between URS Corporation and H. Thomas Hicks, dated as of August 1, 2008.	10-Q	10.5	8/6/2008
10.48 *	Second Amendment to Employment Agreement between URS Corporation and H. Thomas Hicks, dated as of November 25, 2012.				X
10.49 *	Amended and Restated Employment Agreement between URS Corporation and Susan B. Kilgannon, dated as of September 18, 2009.	10-Q	10.1	11/12/2009
10.50 *	First Amendment to Employment Agreement between URS Corporation and Susan B. Kilgannon, dated as of November 28, 2012.				X
10.51 *	Employment Agreement between Robert W. Zaist and Washington Group International, Inc., dated as of November 8, 2009.	10-Q	10.4	5/10/2011
10.52 *	First Amendment to Employment Agreement between Robert W. Zaist and Washington Group International, Inc., dated as of November 28, 2012.				X
10.53 *	Revised Compensatory Arrangement for Robert W. Zaist.	10-Q	10.3	8/9/2011
10.54 *	Form of 1999 Equity Incentive Plan Restricted Stock Unit Award Agreement, executed between URS Corporation and Martin M. Koffel for 50,000 shares of deferred restricted stock units, dated as of July 12, 2004.	10-Q	10.3	9/9/2004
10.55 *	First Amendment to the July 12, 2004 Restricted Stock Unit Award Agreement between URS Corporation and Martin M. Koffel, dated as of December 10, 2008.	8-K	10.3	12/10/2008

169

		Incorporated by Reference (Exchange Act Filings Located at File No. 001-07567)
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date	Filed Herewith
10.56 *	Employment Agreement between Flint Energy Services Ltd. and William John Lingard.	10-Q	10.2	8/7/2012
10.57 *	2008 Equity Incentive Plan Restricted Stock Award between URS and Martin M. Koffel, dated December 10, 2008.	8-K	10.4	12/10/2008
10.58 *	Form of Restricted Stock Award Grant Notice and Agreement for Martin M. Koffel under the URS Corporation 2008 Equity Incentive Plan, dated January 2, 2012.	8-K	10.2	12/14/2011
10.59 *	Form of 1999 Equity Incentive Plan Nonstatutory Stock Option Agreement and Grant Notice, executed as a separate agreement between URS Corporation and Gary V. Jandegian, dated as of July 12, 2004.	10-Q	10.2	5/10/2005
10.60 *	Form of 1999 Equity Incentive Plan Restricted Stock Award as of May 25, 2006.	8-K	10.2	5/31/2006
10.61 *	Form of 2008 Equity Incentive Plan Restricted Stock Award Grant Notice and Agreement.	8-K	10.5	12/10/2008
10.62 *	Form of 2008 Equity Incentive Plan Restricted Stock Unit Award Grant Notice and Agreement.	8-K	10.6	12/10/2008
10.63 *	Form of 2008 Equity Incentive Plan Restricted Stock Award Grant Notice and Agreement.	10-Q	10.7	11/12/2009
10.64 *	Form of 2008 Equity Incentive Plan Restricted Stock Unit Award Grant Notice and Agreement.	10-Q	10.8	11/12/2009
10.65 *	Form of Officer Indemnification Agreement between URS Corporation and each of Thomas W. Bishop, Reed N. Brimhall, Susan B. Kilgannon, Gary V. Jandegian, William Lingard, Joseph Masters, Randall A. Wotring, H. Thomas Hicks and Robert W. Zaist	10-Q	10.3	6/14/2004
10.66 *	Form of Director Indemnification Agreement between URS Corporation and each of Mickey P. Foret, Senator William H. Frist, Lydia H. Kennard, Donald R. Knauss, Martin M. Koffel, Timothy McLevish, General Joseph W. Ralston, USAF (Ret.), John D. Roach, Douglas W. Stotlar, and William P. Sullivan.	10-Q	10.4	6/14/2004
10.67 *	Description of URS Corporation tax gross-up policy.	8-K	N/A	4/29/2009
10.68 *	URS Energy & Construction Holdings, Inc. Restoration Plan.	10-K	10.58	2/28/2011
21.1	Subsidiaries of URS Corporation.				X
23.1	Consent of Independent Registered Public Accounting Firm.				X
24.1	Power of attorney of URS Corporation's directors and officers.				X
31.1	Certification of the Company’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
31.2	Certification of the Company’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32	Certification of the Company’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				X
95	Mine Safety Disclosure				X

170

		Incorporated by Reference (Exchange Act Filings Located at File No. 001-07567)
Exhibit Number	Exhibit Description	Form	Exhibit	Filing Date	Filed Herewith
101.INS	XBRL Instance Document.				X#
101.SCH	XBRL Taxonomy Extension Schema Document.				X#
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.				X#
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.				X#
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.				X#
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.				X#

* Represents a management contract or compensatory plan or arrangement.

# Pursuant to Rule 406T of Regulation S-T, these interactive data files i) are not deemed filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are not deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, irrespective of any general incorporation language included in any such filings, and otherwise are not subject to liability under these sections; and ii) are deemed to have complied with Rule 405 of Regulation S-T (“Rule 405”) and are not subject to liability under the anti-fraud provisions of the Section 17(a)(1) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 or under any other liability provision if we have made a good faith attempt to comply with Rule 405 and, after we become aware that the interactive data files fail to comply with Rule 405, we promptly amend the interactive data files.

171

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	URS Corporation
	(Registrant)
Dated:  February 25, 2013	By:	/s/ Reed N. Brimhall
		Reed N. Brimhall
		Vice President and Chief Accounting Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the date indicated.

Signature	Title	Date
/s/ Martin M. Koffel*	Chairman of the Board of Directors and Chief Executive Officer	February 25, 2013
Martin M. Koffel
/s/ H. Thomas Hicks	Chief Financial Officer	February 25, 2013
H. Thomas Hicks
/s/ Reed N. Brimhall	Vice President and Chief Accounting Officer	February 25, 2013
Reed N. Brimhall

/s/ Mickey P. Foret*	Director	February 25, 2013
Mickey P. Foret
/s/ William H. Frist*	Director	February 25, 2013
William H. Frist
/s/ Lydia H. Kennard*	Director	February 25, 2013
Lydia H. Kennard

/s/ Donald R. Knauss*	Director	February 25, 2013
Donald R. Knauss
/s/ Timothy R. McLevish*	Director	February 25, 2013
Timothy R. McLevish
/s/ Joseph W. Ralston*	Director	February 25, 2013
Joseph W. Ralston

/s/ John D. Roach*	Director	February 25, 2013
John D. Roach
/s/ Douglas W. Stotlar*	Director	February 25, 2013
Douglas W. Stotlar
/s/ William P. Sullivan*	Director	February 25, 2013
William P. Sullivan

172

Signature	Title	Date
/s/ H. Thomas Hicks	Chief Financial Officer	February 25, 2013
H. Thomas Hicks (attorney-in-fact)
/s/ Reed N. Brimhall	Vice President and Chief Accounting Officer	February 25, 2013
Reed N. Brimhall (attorney-in-fact)

173

EX-10.21

EXHIBIT 10.21

EXHIBIT A

AMENDMENT NUMBER 8

TO THE

URS FEDERAL TECHNICAL SERVICES, INC. EMPLOYEES RETIREMENT PLAN

(2007 Restatement)

The URS Federal Technical Services, Inc. Employees Retirement Plan, as restated effective January 1, 2007, is hereby amended, effective May 1, 2012, by the addition of a new Section 4.3 as follows.  The following sections of Article IV are renumbered accordingly.

4.3           In-Service Withdrawal after Attainment of Age 62

(a) Not withstanding any provision in Section 3.3(b) to the contrary, a Participant may elect at any time after attainment of age 62 to begin receiving his or her vested Retirement Income while still in the employ of the Company.  The Participant shall begin receiving benefits on the first day of the calendar month after the Plan Administrator receives his written application to receive benefits.  In-Service Withdrawals provided under this Section 4.3 shall be subject to the following restrictions:

(i) The Participant must have a reduced work schedule, which provides for the completion of less than 40 Hours of Service with the Employer in any month.

(ii) If the Participant actually completes more than 40 Hours of Service in any month, that month shall be treated as a month of suspension service under Section 3.3, and the Participant’s Retirement Income shall be suspended for that month.

(b) The Participant shall continue to earn Credited Service as provided above in Section 3.2(b) for a Participant who does not normally work the regular full-time work week for his Employer.

(c) The Participant shall continue to accrue benefits at the rate provided above in Section 4.1(b) until the Participant’s retirement, subject to the exclusions set forth in Sections 4.1(c) and (d).

[Remainder of Page Intentionally Left Blank]

i

(d) The Participant’s Retirement Income that otherwise would have commenced on his Normal Retirement Date shall be calculated in the same manner as the early Retirement Income calculated pursuant to Sections 4.2(b)(i) and (ii), above.

	URS Federal Technical Services, Inc.
Dated:  _____________________, 2012	By:
	Title:

ii

EX-10.22

EXHIBIT 10.22

AMENDMENT NUMBER 9

TO THE

URS FEDERAL TECHNICAL SERVICES, INC.

EMPLOYEES RETIREMENT PLAN

(2007 Restatement)

The URS Federal Technical Services, Inc. Employees Retirement Plan, as restated effective January 1, 2007, is hereby amended, effective January 1, 2013, as follows:

·   Section 12.2(c) of the Plan is amended to read:

(c) “Medical Benefits” shall mean,

(i) with respect to a Covered Retiree who became a Covered Retiree prior to January 1, 2013, a percentage of the Per Capita Retiree Health Cost, such percentage being equal to $3,400 (as indexed from time to time) divided by the Per Capita Retiree Health Cost, but in no event in excess of 100% of such cost.

(ii) with respect to a Covered Retiree who becomes a Covered Retiree on or after January 1, 2013, a percentage of the Per Capita Retiree Health Cost, such percentage being equal to:

(A) $3,400 (as indexed from time to time) divided by the Per Capita Retiree Health Cost, but in no event in excess of 100% of such cost, through the date immediately preceding the date the Covered Retiree attains age 65; and

(B) $1,100 (as indexed from time to time) divided by the Per Capita Retiree Health Cost, but in no event in excess of 100% of such cost, on and after the date the Covered Retiree attains age 65.

	URS Federal Technical Services, Inc.
Dated:  ____________________, 2012	By:
	Title:

i

EX-10.34

EXHIBIT 10.34

SIXTH AMENDMENT TO THE

EMPLOYMENT AGREEMENT

BETWEEN JOSEPH MASTERS AND URS CORPORATION

WHEREAS, Joseph Masters (the“Employee”) and URS Corporation (the“Company”) entered into an Employment Agreement effective as of September 8, 2000 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of this Agreement and (i) within six (6) months after the occurrence of a Change in Control, the Employee voluntarily resigns his employment for Good Reason, (ii) within six (6) months after the occurrence of a Change in Control, the Company terminates the Employee’s employment for any reason, or (iii) within the thirty (30) day period following the date that is six (6) months after the occurrence of a Change in Control, the Employee voluntarily resigns his employment for any reason, then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii), provided that such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”).  The Change in Control Payment shall be in an amount determined under Section 6(d) and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Change in Control Payment shall be in lieu of (i) any further payments to the Employee under Section 3, (ii) any further accrual of benefits under Section 4 with respect to periods subsequent to the date of the employment termination and (iii) any entitlement to a Severance Payment (as defined in Section 7(a)(i)).  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued but unpaid vacation.

.

i

B.                 Sections 7(a), 7(a)(i) and 7(a)(ii) of the Employment Agreement hereby are amended in their entirety to read as follows:

(a)           Severance Payment and Severance Benefits.  In the event that, during the term of this Agreement and provided that Section 6 does not apply and such termination of employment constitutes a Separation from Service and, (x) the Company terminates the Employee’s employment for any reason, (y) on or before June 29, 2009 the Employee voluntarily resigns his employment for Good Reason within one (1) month of the occurrence of the event constituting Good Reason, or (z) on or after June 30, 2009 the Employee voluntarily resigns his employment for any reason, then:

(i)               The Company shall pay an amount (“Severance Payment”) equal to one million one hundred fifty two thousand dollars ($1,152,000).  The Severance Payment shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Severance Payment shall be in lieu of (A) any further payments to the Employee under Section 3 and (B) any further accrual of benefits under Section 4 with respect to periods subsequent to the date of employment termination.  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

(ii)               For the period of one (1) year following such termination, the Company shall (i) reimburse the Employee for dental and health insurance premiums required to be paid by the Employee for such one (1) year period to obtain COBRA continuation coverage within the meaning of Section 4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, and (ii) cause group long-term disability insurance coverage and basic term life insurance coverage then provided to the Employee by the Company, if any, to be continued for such one (1) year period (or, if such coverage cannot be continued or can only be continued at a cost to the Company greater than the Company would have incurred absent such termination, then, at the Company’s election, the Company may either provide such long-term disability or term life insurance as may be available at no greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue such coverage absent such termination) (payments and benefits under this Section 7(a)(ii), collectively, “Severance Benefits”).  If the Company elects to pay the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue long-term disability or term life insurance, such payments shall be subject to the same restrictions with respect to timing of such payments that are applicable to Severance Payments set forth in Section 7(a)(i) in addition to the restrictions applicable to Severance Benefits set forth under this Section 7(a)(ii).  The amount of any in-kind benefits provided under this Section 7(a)(ii) with respect to life and disability insurance coverage (or expenses eligible for reimbursement, if applicable) during a calendar year may not affect the in-kind benefits to be provided (or expenses eligible for reimbursement, if applicable), in any other calendar year.  Any and all payments due to the Employee under this Section 7(a)(ii) with respect to life and disability insurance premiums with respect to a given calendar year shall be payable no later than December 31 of the succeeding calendar year.

.

ii

C.                Section 8 of the Employment Agreement hereby is amended in its entirety to read as follows:

Notwithstanding any of the foregoing to the contrary, in no event shall the Company be required to make any payment or provide any benefit pursuant to Section 6 or 7 above (except for payments of accrued and unpaid vacation) unless and until the Employee executes and delivers to the Company a release in the form of Exhibit A or Exhibit B, as appropriate, and such release becomes effective in accordance with its terms no later than ninety (90) days following the termination of employment date; provided, however, that pending such execution and delivery of such a release by the Employee, the Company will advance for the account of the Employee premiums required to be paid during the period during which the effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee within such period of a group dental, health or disability policy to which Severance Benefits provided under Section 7(a)(ii) relate, which advance shall be repaid by the Employee on expiration of (i) the period during which the Employee is permitted to consider whether to execute the release (if the Employee does not execute the release) or (ii) the period during which the effectiveness of the release is pending (if the Employee executes the release but does not allow it to become effective in accordance with its terms).

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

.

iii

IN WITNESS WHEREOF, each of the parties has executed this Sixth Amendment to the Employment Agreement, as of the day and year first above written.

Joseph Masters

Joseph Masters

URS Corporation,

a Delaware corporation

By:

Name:

Title:

iv

EX-10.37

EXHIBIT 10.37

SECOND AMENDMENT TO THE

EMPLOYMENT AGREEMENT

BETWEEN REED N. BRIMHALL AND URS CORPORATION

WHEREAS, Reed N. Brimhall (the“Employee”) and URS Corporation (the“Company”) entered into an Employment Agreement effective as of May 19, 2003 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of this Agreement and within one year after the occurrence of a Change in Control, either (i) the Employee voluntarily resigns his employment for Good Reason or (ii) the Company terminates the Employee’s employment for any reason other than Cause or Disability and (iii) such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii).  No Change in Control Payment shall be made in case of termination of employment of the Employee by reason of resignation of the Employee other than for Good Reason, death of the Employee, or any other circumstance not specifically and expressly described in the immediately preceding sentence.  The Change in Control Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Change in Control Payment shall be in lieu of (i) any further payments to the Employee under Section 3, (ii) any further accrual of benefits under Sections 4 and 6 with respect to periods subsequent to the date of the employment termination and (iii) any entitlement to a Severance Payment (as defined in Section 7(a)(i) below).  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

.

i

B.                Sections 7(a), 7(a)(i) and 7(a)(ii) of the Employment Agreement hereby are amended in their entirety to read as follows:

(a)           Severance Payment and Severance Benefits.  In the event that, during the term of this Agreement, either (i) the Company terminates the Employee’s employment for any reason other than Cause or Disability or (ii) the Employee voluntarily resigns his employment for Good Reason within one (1) month of the occurrence of the event constituting Good Reason and (iii) such termination of employment constitutes a Separation from Service and (iv) Section 6 does not apply, then:

(i)               The Company shall pay an amount (“Severance Payment”) in a lump sum equal to one hundred percent (100%) of the Employee’s Base Compensation as in effect on the date of employment termination.  The Severance Payment shall be paid within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

(ii)               For the period of one (1) year following such termination, the Company shall (i) reimburse the Employee for dental and health insurance premiums required to be paid by the Employee for such one (1) year period to obtain COBRA continuation coverage within the meaning of Section 4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, and (ii) cause group long-term disability insurance coverage and basic term life insurance coverage then provided to the Employee by the Company, if any, to be continued for such one (1) year period (or, if such coverage cannot be continued or can only be continued at a cost to the Company greater than the Company would have incurred absent such termination, then, at the Company’s election, the Company may either provide such long-term disability or term life insurance as may be available at no greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue such coverage absent such termination) (payments and benefits under this Section 7(a)(ii), collectively “Severance Benefits”).  If the Company elects to pay the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue long-term disability or term life insurance, such payments shall be subject to the same restrictions with respect to timing of such payments that are applicable to Severance Payments set forth in Section 7(a)(i) in addition to the restrictions applicable to Severance Benefits set forth under this Section 7(a)(ii).  The amount of any in-kind benefits provided under this Section 7(a)(ii) with respect to life and disability insurance coverage (or expenses eligible for reimbursement, if applicable) during a calendar year may not affect the in-kind benefits to be provided (or expenses eligible for reimbursement, if applicable), in any other calendar year.  Any and all payments due to the Employee under this Section 7(a)(ii) with respect to life and disability insurance premiums with respect to a given calendar year shall be payable no later than December 31 of the succeeding calendar year.

.

ii

C.                Section 8 of the Employment Agreement hereby is amended in its entirety to read as follows:

Notwithstanding any of the foregoing to the contrary, in no event shall the Company be required to make any payment or provide any benefit pursuant to Section 6 or 7 above (except for payments of accrued and unpaid vacation) unless and until the Employee executes and delivers to the Company a General Release in the form of Exhibit A, and such release becomes effective in accordance with its terms no later than ninety (90) days following the termination of employment date; provided, however, that pending such execution and delivery of such a release by the Employee, the Company will advance for the account of the Employee premiums required to be paid during the period during which the effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee within such period of a group dental, health or disability policy to which Severance Benefits provided under Section 7(a)(ii) relate, which advance shall be repaid by the Employee upon expiration of (i) the period during which the Employee is permitted to consider whether to execute the release (if the Employee does not execute the release) or (ii) the period during which the effectiveness of the release is pending (if the Employee executes the release but does not allow it to become effective in accordance with its terms).

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

.

iii

IN WITNESS WHEREOF, each of the parties has executed this Second Amendment to the Employment Agreement, as of the day and year first above written.

Reed N. Brimhall

Reed N. Brimhall

URS Corporation,

a Delaware corporation

By:

Name:

Title:

iv

EX-10.40

EXHIBIT 10.40

SECOND AMENDMENT TO THE

EMPLOYMENT AGREEMENT

BETWEEN GARY V. JANDEGIAN AND URS CORPORATION

WHEREAS, Gary V. Jandegian (the“Employee”) and URS Corporation (the“Company”) entered into an Employment Agreement effective as of July 1, 2003 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of this Agreement and within one year after the occurrence of a Change in Control, either (i) the Employee voluntarily resigns his employment for Good Reason or (ii) the Company terminates the Employee’s employment for any reason other than Cause or Disability and (iii) such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii).  No Change in Control Payment shall be made in case of termination of employment of the Employee by reason of resignation of the Employee other than for Good Reason, death of the Employee, or any other circumstance not specifically and expressly described in the immediately preceding sentence.  The Change in Control Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Change in Control Payment shall be in lieu of (i) any further payments to the Employee under Section 3, (ii) any further accrual of benefits under Sections 4 and 6 with respect to periods subsequent to the date of the employment termination and (iii) any entitlement to a Severance Payment (as defined in Section 7(a)(i) below).  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

i

B.                Sections 7(a), 7(a)(i) and 7(a)(ii) of the Employment Agreement hereby are amended in their entirety to read as follows:

(a)           Severance Payment and Severance Benefits.  In the event that, during the term of this Agreement, either (i) the Company terminates the Employee’s employment for any reason other than Cause or Disability or (ii) the Employee voluntarily resigns his employment for Good Reason within one (1) month of the occurrence of the event constituting Good Reason and (iii) such termination of employment constitutes a Separation from Service and (iv) Section 6 does not apply, then:

(i)               The Company shall pay an amount (“Severance Payment”) in a lump sum equal to one hundred percent (100%) of the Employee’s Base Compensation as in effect on the date of employment termination.  The Severance Payment shall be paid within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

(ii)               For the period of one (1) year following such termination, the Company shall (i) reimburse the Employee for dental and health insurance premiums required to be paid by the Employee for such one (1) year period to obtain COBRA continuation coverage within the meaning of Section 4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, and (ii) cause group long-term disability insurance coverage and basic term life insurance coverage then provided to the Employee by the Company, if any, to be continued for such one (1) year period (or, if such coverage cannot be continued or can only be continued at a cost to the Company greater than the Company would have incurred absent such termination, then, at the Company’s election, the Company may either provide such long-term disability or term life insurance as may be available at no greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue such coverage absent such termination) (payments and benefits under this Section 7(a)(ii), collectively “Severance Benefits”).  If the Company elects to pay the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue long-term disability or term life insurance, such payments shall be subject to the same restrictions with respect to timing of such payments that are applicable to Severance Payments set forth in Section 7(a)(i) in addition to the restrictions applicable to Severance Benefits set forth under this Section 7(a)(ii).  The amount of any in-kind benefits provided under this Section 7(a)(ii) with respect to life and disability insurance coverage (or expenses eligible for reimbursement, if applicable) during a calendar year may not affect the in-kind benefits to be provided (or expenses eligible for reimbursement, if applicable), in any other calendar year.  Any and all payments due to the Employee under this Section 7(a)(ii) with respect to life and disability insurance premiums with respect to a given calendar year shall be payable no later than December 31 of the succeeding calendar year.

ii

C.                Section 8 of the Employment Agreement hereby is amended in its entirety to read as follows:

Notwithstanding any of the foregoing to the contrary, in no event shall the Company be required to make any payment or provide any benefit pursuant to Section 6 or 7 above (except for payments of accrued and unpaid vacation) unless and until the Employee executes and delivers to the Company a General Release in the form of Exhibit A, and such release becomes effective in accordance with its terms no later than ninety (90) days following the termination of employment date; provided, however, that pending such execution and delivery of such a release by the Employee, the Company will advance for the account of the Employee premiums required to be paid during the period during which the effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee within such period of a group dental, health or disability policy to which Severance Benefits provided under Section 7(a)(ii) relate, which advance shall be repaid by the Employee upon expiration of (i) the period during which the Employee is permitted to consider whether to execute the release (if the Employee does not execute the release) or (ii) the period during which the effectiveness of the release is pending (if the Employee executes the release but does not allow it to become effective in accordance with its terms).

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

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IN WITNESS WHEREOF, each of the parties has executed this Second Amendment to the Employment Agreement, as of the day and year first above written.

Gary V. Jandegian

Gary V. Jandegian

URS Corporation,

a Delaware corporation

By:

Name:

Title:

iv

 

EX-10.42

EXHIBIT 10.42

FIRST AMENDMENT TO THE

EMPLOYMENT AGREEMENT

BETWEEN THOMAS W. BISHOP AND URS CORPORATION

WHEREAS, Thomas W. Bishop (the“Employee”) and URS Corporation (the“Company”) entered into an Employment Agreement effective as of June 1, 2011 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW, THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of the Employee’s employment under this Agreement and within one year after the occurrence of a Change in Control, either (i) the Employee voluntarily resigns his employment for Good Reason or (ii) the Company terminates the Employee’s employment for any reason other than Cause or Disability and (iii) such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii).  No Change in Control Payment shall be made in case of termination of employment of the Employee by reason of resignation of the Employee other than for Good Reason, death of the Employee, or any other circumstance not specifically and expressly described in the immediately preceding sentence.  The Change in Control Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Change in Control Payment shall be (i) reduced by an amount equal to the Annual Target Bonus to the extent an annual bonus is due to the Employee under the Company’s applicable annual bonus plan at the time of the employment termination but has not yet been paid, (ii) in lieu of any further accrual of benefits under Sections 4 and 6 with respect to periods subsequent to the date of the employment termination and (iii) in lieu of any entitlement to a Severance Payment (as defined in Section 7(a)(i) below).  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

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B.                Section 7(a)(i) of the Employment Agreement hereby is amended in its entirety to read as follows:

(i)         The Company shall pay an amount (“Severance Payment”) in a lump sum equal to one hundred percent (100%) of the Employee’s Base Compensation as in effect on the date of employment termination.  The Severance Payment shall be paid within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, each of the parties has executed this First Amendment to the Employment Agreement, as of the day and year first above written.

Thomas W. Bishop

Thomas W. Bishop

URS Corporation,

a Delaware corporation

By:

Name:

Title:

ii

 

EX-10.45

EXHIBIT 10.45

SECOND AMENDMENT TO THE

EMPLOYMENT AGREEMENT

BETWEEN RANDALL A. WOTRING AND EG&G TECHNICAL SERVICES, INC.

WHEREAS, Randall A. Wotring (the“Employee”) and EG&G Technical Services, Inc. (the“Company”) entered into an Employment Agreement effective as of November 19, 2004 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of this Agreement and within one year after the occurrence of a Change in Control, either (i) the Employee voluntarily resigns his employment for Good Reason or (ii) the Company terminates the Employee’s employment for any reason other than Cause or Disability and (iii) such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii).  No Change in Control Payment shall be made in case of termination of employment of the Employee by reason of resignation of the Employee other than for Good Reason, death of the Employee, or any other circumstance not specifically and expressly described in the immediately preceding sentence.  The Change in Control Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Change in Control Payment shall be in lieu of (i) any further payments to the Employee under Section 3, (ii) any further accrual of benefits under Sections 4 and 6 with respect to periods subsequent to the date of the employment termination and (iii) any entitlement to a Severance Payment (as defined in Section 7(a)(i) below).  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

i

B.                Sections 7(a), 7(a)(i) and 7(a)(ii) of the Employment Agreement hereby are amended in their entirety to read as follows:

(a)           Severance Payment and Severance Benefits.  In the event that, during the term of this Agreement, either (i) the Company terminates the Employee’s employment for any reason other than Cause or Disability or (ii) the Employee voluntarily resigns his employment for Good Reason within one (1) month of the occurrence of the event constituting Good Reason and (iii) such termination of employment constitutes a Separation from Service and (iv) Section 6 does not apply, then:

(i)               The Company shall pay an amount (“Severance Payment”) in a lump sum equal to one hundred percent (100%) of the Employee’s Base Compensation as in effect on the date of employment termination.  The Severance Payment shall be paid within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  In addition, at the time of the employment termination, the Company shall pay to the Employee all accrued and unpaid vacation.

(ii)               For the period of one (1) year following such termination, the Company shall (i) reimburse the Employee for dental and health insurance premiums required to be paid by the Employee for such one (1) year period to obtain COBRA continuation coverage within the meaning of Section 4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, and (ii) cause group long-term disability insurance coverage and basic term life insurance coverage then provided to the Employee by the Company, if any, to be continued for such one (1) year period (or, if such coverage cannot be continued or can only be continued at a cost to the Company greater than the Company would have incurred absent such termination, then, at the Company’s election, the Company may either provide such long-term disability or term life insurance as may be available at no greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue such coverage absent such termination) (payments and benefits under this Section 7(a)(ii), collectively “Severance Benefits”).  If the Company elects to pay the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue long-term disability or term life insurance, such payments shall be subject to the same restrictions with respect to timing of such payments that are applicable to Severance Payments set forth in Section 7(a)(i) in addition to the restrictions applicable to Severance Benefits set forth under this Section 7(a)(ii).  The amount of any in-kind benefits provided under this Section 7(a)(ii) with respect to life and disability insurance coverage (or expenses eligible for reimbursement, if applicable) during a calendar year may not affect the in-kind benefits to be provided (or expenses eligible for reimbursement, if applicable), in any other calendar year.  Any and all payments due to the Employee under this Section 7(a)(ii) with respect to life and disability insurance premiums with respect to a given calendar year shall be payable no later than December 31 of the succeeding calendar year.

ii

C.                Section 8 of the Employment Agreement hereby is amended in its entirety to read as follows:

Notwithstanding any of the foregoing to the contrary, in no event shall the Company be required to make any payment or provide any benefit pursuant to Section 6 or 7 above (except for payments of accrued and unpaid vacation) unless and until the Employee executes and delivers to the Company a General Release in the form of Exhibit A, and such release becomes effective in accordance with its terms no later than ninety (90) days following the termination of employment date; provided, however, that pending such execution and delivery of such a release by the Employee, the Company will advance for the account of the Employee premiums required to be paid during the period during which the effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee within such period of a group dental, health or disability policy to which Severance Benefits provided under Section 7(a)(ii) relate, which advance shall be repaid by the Employee upon expiration of (i) the period during which the Employee is permitted to consider whether to execute the release (if the Employee does not execute the release) or (ii) the period during which the effectiveness of the release is pending (if the Employee executes the release but does not allow it to become effective in accordance with its terms).

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

iii

IN WITNESS WHEREOF, each of the parties has executed this Second Amendment to the Employment Agreement, as of the day and year first above written.

Randall A. Wotring

Randall A. Wotring

EG&G Technical Services, Inc.,

a Delaware corporation

By:

Name:

Title:

iv

EX-10.48

EXHIBIT 10.48

SECOND AMENDMENT TO THE

EMPLOYMENT AGREEMENT

BETWEEN H. THOMAS HICKS AND URS CORPORATION

WHEREAS, H. Thomas Hicks (the“Employee”) and URS Corporation (the“Company”) entered into an Employment Agreement effective as of May 31, 2005 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of the Employee’s employment under this Agreement and within one (1) year after the occurrence of a Change in Control, either (i) the Employee voluntarily resigns his employment for Good Reason or (ii) the Company terminates the Employee’s employment for any reason other than Cause or Disability and (iii) such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii).  No Change in Control Payment shall be made in case of termination of employment of the Employee for Cause or by reason of resignation of the Employee other than for Good Reason, or due to the death of the Employee, or in any other circumstance not specifically and expressly described in the immediately preceding sentence.  The Change in Control Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.

i

B.                Sections 7(a), 7(a)(i) and 7(a)(ii) of the Employment Agreement hereby are amended in their entirety to read as follows:

(a)           Severance Payment and Severance Benefits.  In the event that, during the term of the Employee’s employment under this Agreement, either (i) the Company terminates the Employee’s employment for any reason other than Cause or Disability or (ii) the Employee voluntarily resigns his employment for Good Reason within one (1) month of the occurrence of the event constituting Good Reason and (iii) such termination of employment constitutes a Separation from Service and (iv) Section 6 does not apply, then:

(i)               The Company shall pay an amount (“Severance Payment”) in an amount equal to one hundred percent (100%) of the Employee’s Base Compensation as in effect on the date of employment termination.  The Severance Payment shall be paid in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.

(ii)               For the period of one (1) year following such termination, the Company shall (i) reimburse the Employee for dental and health insurance premiums required to be paid by the Employee for such one (1) year period to obtain COBRA continuation coverage within the meaning of Section 4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, and (ii) cause group long-term disability insurance coverage and basic term life insurance coverage then provided to the Employee by the Company, if any, to be continued for such one (1) year period (or, if such coverage cannot be continued or can only be continued at a cost to the Company greater than the Company would have incurred absent such termination, then, at the Company’s election, the Company may either provide such long-term disability or term life insurance as may be available at no greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue such coverage absent such termination) (payments and benefits under this Section 7(a)(ii), collectively “Severance Benefits”).  If the Company elects to pay the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue long-term disability or term life insurance, such payments shall be subject to the same restrictions with respect to timing of such payments that are applicable to Severance Payments set forth in Section 7(a)(i) in addition to the restrictions applicable to Severance Benefits set forth under this Section 7(a)(ii).  The amount of any in-kind benefits provided under this Section 7(a)(ii) with respect to life and disability insurance coverage (or expenses eligible for reimbursement, if applicable) during a calendar year may not affect the in-kind benefits to be provided (or expenses eligible for reimbursement, if applicable), in any other calendar year.  Any and all payments due to the Employee under this Section 7(a)(ii) with respect to life and disability insurance premiums with respect to a given calendar year shall be payable no later than December 31 of the succeeding calendar year.

ii

C.       Section 8 of the Employment Agreement hereby is amended in its entirety to read as follows:

Notwithstanding any of the foregoing to the contrary, in no event shall the Company be required to make any payment or provide any benefit pursuant to Section 6 or 7 above unless and until the Employee executes and delivers to the Company a General Release in the form of Exhibit A hereto, and such release becomes effective in accordance with its terms no later than ninety (90) days following the termination of employment date; provided, however, that pending such execution and delivery of such a release by the Employee, the Company will advance for the account of the Employee premiums required to be paid during the period during which the effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee within such period of a group dental, health or disability policy to which Severance Benefits provided under Subdivision (ii) of Section 7(a) relate, which advance shall be repaid by the Employee upon expiration of (i) the period during which the Employee is permitted to consider whether to execute the release (if the Employee does not execute the release) or (ii) the period during which the effectiveness of the release is pending (if the Employee executes the release then revokes it within the seven- (7-) day revocation period).

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

iii

IN WITNESS WHEREOF, each of the parties has executed this Second Amendment to the Employment Agreement, as of the day and year first above written.

H. Thomas Hicks

H. Thomas Hicks

URS Corporation,

a Delaware corporation

By:

Name:

Title:

iv

EX-10.50

EXHIBIT 10.50

FIRST AMENDMENT TO THE

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

BETWEEN SUSAN B. KILGANNON AND URS CORPORATION

WHEREAS, Susan B. Kilgannon (the“Employee”) and URS Corporation (the“Company”) entered into an Amended and Restated Employment Agreement effective as of September 18, 2009 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of the Employee’s employment under this Agreement and within one year after the occurrence of a Change in Control, either (i) the Employee voluntarily resigns her employment for Good Reason or (ii) the Company terminates the Employee’s employment for any reason other than Cause or Disability and (iii) such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii).  No Change in Control Payment shall be made in case of termination of employment of the Employee by reason of resignation of the Employee other than for Good Reason, death of the Employee, or any other circumstance not specifically and expressly described in the immediately preceding sentence.  The Change in Control Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Change in Control Payment shall be (i) reduced by an amount equal to the Annual Target Bonus to the extent an annual bonus is due to the Employee under the Company’s applicable annual bonus plan at the time of the employment termination but has not yet been paid, (ii) in lieu of any further accrual of benefits under Section 4 with respect to periods subsequent to the date of the employment termination and (iii) in lieu of any entitlement to a Severance Payment (as defined in Section 7(a)(i) below).

i

B.                Sections 7(a), 7(a)(i) and 7(a)(ii) of the Employment Agreement hereby are amended in their entirety to read as follows:

(a)           Severance Payment and Severance Benefits.  In the event that, during the term of the Employee’s employment under this Agreement, either (i) the Company terminates the Employee’s employment for any reason other than Cause or Disability or (ii) the Employee voluntarily resigns her employment for Good Reason within one (1) month of the occurrence of the event constituting Good Reason and (iii) such termination of employment is a Separation from Service and (iv) Section 6 does not apply, then:

(i)               The Company shall pay an amount (“Severance Payment”) in a lump sum equal to one hundred percent (100%) of the Employee’s Base Compensation as in effect on the date of employment termination.  The Severance Payment shall be paid within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum on the date that is six (6) months and one (1) day following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.

(ii)               Either (X) for the period of one (1) year following such termination, the Company shall pay or reimburse the Employee for dental, health and vision insurance premiums required to be paid by the Employee for such one (1) year period to obtain continuation coverage for the Employee under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the meaning of Section 4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, or (Y) in the event the Employee does not elect such COBRA continuation coverage under clause (X) above, the Employee, if eligible under the terms of the URS Retiree Medical Plan, shall be entitled to participate and the Company shall permit and facilitate the Employee’s enrollment for her lifetime (and to the extent eligible her dependents, including her surviving spouse for his lifetime), at the Employee’s cost (or at the cost of her surviving spouse), in the Company’s dental, health and vision plans selected by the Employee under the URS Retiree Medical Plan (or any replacement or successor plan or, absent any replacement or successor plan, in such other plan as may then be maintained or sponsored by the Company for its employees) in accordance with the terms of such Plan.  Whether the Employee selects COBRA continuation coverage under clause (X) above or enrollment in the URS Retiree Medical Plan under clause (Y) above (which the Employee understands are mutually exclusive), the Company also shall cause group long-term disability insurance coverage and basic term life insurance coverage then provided to the Employee by the Company, if any, to be continued for such one (1) year period following any such termination (or, if such coverage cannot be continued or can only be continued at a cost to the Company greater than the Company would have incurred absent such termination, then, at the Company’s election, the Company may either provide such long-term disability or term life insurance as may be available at no greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue such coverage absent such termination) (payments and benefits under this Section 7(a)(ii), collectively “Severance Benefits”).  If the Company elects to pay the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue long-term disability or term life insurance, such payments shall be subject to the same restrictions with respect to timing of such payments that are applicable to Severance Payments set forth in Section 7(a)(i) in addition to the restrictions applicable to Severance Benefits set forth under this Section 7(a)(ii).  The amount of any in-kind benefits provided under this Section 7(a)(ii) with respect to life and disability insurance coverage (or expenses eligible for reimbursement, if applicable) during a calendar year may not affect the in-kind benefits to be provided (or expenses eligible for reimbursement, if applicable), in any other calendar year.  Any and all payments due to the Employee under this Section 7(a)(ii) with respect to life and disability insurance premiums with respect to a given calendar year shall be payable no later than December 31 of the succeeding calendar year.

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C.                Section 8 of the Employment Agreement hereby is amended in its entirety to read as follows:

Notwithstanding any of the foregoing to the contrary, in no event shall the Company be required to make any payment or provide any benefit pursuant to Section 6 or 7 above (except for payments of accrued and unpaid vacation) unless and until the Employee executes and delivers to the Company a General Release in the form of Exhibit A, and such release becomes effective in accordance with its terms no later than 90 days following the termination of employment date; provided, however, that pending such execution and delivery of such a release by the Employee, the Company will advance for the account of the Employee premiums required to be paid during the period during which the effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee within such period of a group dental, health or disability policy to which Severance Benefits provided under Section 7(a)(ii) relate, which advance shall be repaid by the Employee upon expiration of (i) the period during which the Employee is permitted to consider whether to execute the release (if the Employee does not execute the release) or (ii) the period during which the effectiveness of the release is pending (if the Employee executes the release but does not allow it to become effective in accordance with its terms).

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, each of the parties has executed this First Amendment to the Employment Agreement, as of the day and year first above written.

Susan B. Kilgannon

Susan B. Kilgannon

URS Corporation,

a Delaware corporation

By:

Name:

Title:

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EX-10.52

EXHIBIT 10.52

FIRST AMENDMENT TO THE

EMPLOYMENT AGREEMENT

BETWEEN ROBERT W. ZAIST AND WASHINGTON GROUP INTERNATIONAL, INC.

WHEREAS, Robert W. Zaist (the“Employee”) and Washington Group International, Inc. (the“Company”) entered into an Employment Agreement effective as of November 16, 2009 (the“Employment Agreement”); and

WHEREAS, the Employee and the Company wish to amend the Employment Agreement to modify certain provisions in order to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the“Code”).

NOW THEREFORE, the Employment Agreement is amended effective as of [__________, 2012], as follows:

A.                Section 6(c) of the Employment Agreement hereby is amended in its entirety to read as follows:

(c)           Change in Control Payment and Severance Benefits.  If, during the term of the Employee’s employment under this Agreement and within one year after the occurrence of a Change in Control, either (i) the Employee voluntarily resigns his employment for Good Reason or (ii) the Company terminates the Employee’s employment for any reason other than Cause or Disability and (iii) such termination of employment is a “separation from service” (as such term is defined in Treasury Regulation Section 1.409A-1(h), without regard to any alternative definition thereunder, a “Separation from Service”), then the Employee shall be entitled to receive a severance payment from the Company (the “Change in Control Payment”) and in addition shall be entitled to Severance Benefits in accordance with Section 7(a)(ii).  No Change in Control Payment shall be made in case of termination of employment of the Employee by reason of resignation of the Employee other than for Good Reason, death of the Employee, or any other circumstance not specifically and expressly described in the immediately preceding sentence.  The Change in Control Payment shall be in an amount determined under Section 6(d) below and shall be made in a lump sum within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) at the time of such Separation from Service, the Change in Control Payment shall be made in a lump sum during the seventh (7th) month following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.  The Change in Control Payment shall be (i) reduced by an amount equal to the Annual Target Bonus to the extent an annual bonus is due to the Employee under the Company’s applicable annual bonus plan at the time of the employment termination but has not yet been paid, (ii) in lieu of any further accrual of benefits under Section 4 with respect to periods subsequent to the date of the employment termination and (iii) in lieu of any entitlement to a Severance Payment (as defined in Section 7(a)(i) below).

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B.                Sections 7(a), 7(a)(i) and 7(a)(ii) of the Employment Agreement hereby are amended in their entirety to read as follows:

(a)           Severance Payment and Severance Benefits.  In the event that, during the term of the Employee’s employment under this Agreement, either (i) the Company terminates the Employee’s employment for any reason other than Cause or Disability or (ii) the Employee voluntarily resigns his employment for Good Reason within one (1) month of the occurrence of the event constituting Good Reason and (iii) such termination of employment is a Separation from Service and (iv) Section 6 does not apply, then:

(i)               The Company shall pay an amount (“Severance Payment”) in a lump sum equal to one hundred percent (100%) of the Employee’s Base Compensation as in effect on the date of employment termination.  The Severance Payment shall be paid within ninety (90) days following the Employee’s Separation from Service; provided, however, that (i) if such ninety (90)-day period begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year, (ii) if the Employee is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such Separation from Service, the Severance Payment shall be made in a lump sum during the seventh (7th) month following the date of such Separation from Service and (iii) in all cases, such payment shall be conditioned upon the Employee’s release becoming effective in accordance with its terms as described in Section 8.

(ii)               For the period of one (1) year following such termination, the Company shall (i) pay or reimburse the Employee for dental and health insurance premiums required to be paid by the Employee for such one (1) year period to obtain continuation coverage for the Employee under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), within the meaning of Section 4980B(f)(2) of the Code, provided the Employee elects such continuation coverage, and (ii) cause group long-term disability insurance coverage and basic term life insurance coverage then provided to the Employee by the Company, if any, to be continued for such one (1) year period (or, if such coverage cannot be continued or can only be continued at a cost to the Company greater than the Company would have incurred absent such termination, then, at the Company’s election, the Company may either provide such long-term disability or term life insurance as may be available at no greater cost than one hundred fifty percent (150%) of what the Company would have incurred absent such termination or pay to the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue such coverage absent such termination) (payments and benefits under this Section 7(a)(ii), collectively “Severance Benefits”).  If the Company elects to pay the Employee one hundred fifty percent (150%) of the amount of premiums the Company would have incurred to continue long-term disability or term life insurance, such payments shall be subject to the same restrictions with respect to timing of such payments that are applicable to Severance Payments set forth in Section 7(a)(i) in addition to the restrictions applicable to Severance Benefits set forth under this Section 7(a)(ii).  The amount of any in-kind benefits provided under this Section 7(a)(ii) with respect to life and disability insurance coverage (or expenses eligible for reimbursement, if applicable) during a calendar year may not affect the in-kind benefits to be provided (or expenses eligible for reimbursement, if applicable), in any other calendar year.  Any and all payments due to the Employee under this Section 7(a)(ii) with respect to life and disability insurance premiums with respect to a given calendar year shall be payable no later than December 31 of the succeeding calendar year.

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C.                Section 8 of the Employment Agreement hereby is amended in its entirety to read as follows:

Notwithstanding any of the foregoing to the contrary, in no event shall the Company be required to make any payment or provide any benefit pursuant to Section 6 or 7 above (except for payments of accrued and unpaid vacation) unless and until the Employee executes and delivers to the Company a General Release in the form of Exhibit A, and such release becomes effective in accordance with its terms no later than 90 days following the termination of employment date; provided, however, that pending such execution and delivery of such a release by the Employee, the Company will advance for the account of the Employee premiums required to be paid during the period during which the effectiveness of the release is pending if necessary to avoid lapse with respect to the Employee within such period of a group dental, health or disability policy to which Severance Benefits provided under Section 7(a)(ii) relate, which advance shall be repaid by the Employee upon expiration of (i) the period during which the Employee is permitted to consider whether to execute the release (if the Employee does not execute the release) or (ii) the period during which the effectiveness of the release is pending (if the Employee executes the release but does not allow it to become effective in accordance with its terms).

Except as amended as provided above, the Employment Agreement shall remain in full force and effect.

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IN WITNESS WHEREOF, each of the parties has executed this First Amendment to the Employment Agreement, as of the day and year first above written.

Robert W. Zaist

Robert W. Zaist

Washington Group International, Inc.

By:

Name:

Title:

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EX-21.1

EXHIBIT 21.1

SUBSIDIARIES OF URS CORPORATION

Name of Subsidiary and Consolidated Joint Ventures	State of Incorporation
URS Energy & Construction, Inc.	Ohio, USA
URS Corporation – Nevada	Nevada, USA
URS Group Inc.	Delaware, USA
Sellafield Limited*	Foreign
URS Federal Technical Services, Inc.	Delaware, USA
Apptis Inc.	Virginia, USA
URS Luxembourg LLP	Foreign
EG&G Defense Materials, Inc.	Utah, USA
URS Australia Pty Ltd	Foreign
URS Jamaica Limited	Foreign
Montgomery Insurance Company, Inc.	Hawaii, USA
Universe Bidco Limited	Foreign
URS Canada, Inc.	Foreign
Cleveland Wrecking Company	Delaware, USA
URS Corporation Southern	California, USA
URS Corporation – Ohio	Ohio, USA
URS Federal Support Services, Inc.	Delaware, USA
URS Holdings, Inc.	Delaware, USA
URS E&C Holdings, Inc.	Delaware, USA
URS Global Holdings Inc.	Nevada, USA
Flint Energy Services, Inc.	Delaware, USA
J.W. Williams, Inc.	Wyoming, USA
URS Global Holdings UK Ltd.	Foreign
WGI Netherlands BV	Foreign
URS Worldwide Holdings UK Limited	Foreign
URS Intercontinental Holdings UK Limited	Foreign

*     Consolidated joint venture with a third party.

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EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (File Nos. 333-91053, 333-110467, 333-138531, and 333-151404) of URS Corporation of our report dated February 25, 2013 relating to the consolidated financial statements and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

San Francisco, California

February 25, 2013

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EX-24.1

EXHIBIT 24 .1

POWERS OF ATTORNEY OF URS CORPORATION’S DIRECTORS AND OFFICERS

Each person whose signature appears below hereby constitutes and appoints any one of H. THOMAS HICKS and REED N. BRIMHALL, each with full power to act without the other, as his or her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign the Annual Report on Form 10-K for fiscal year ended December 28, 2012 of URS Corporation, and any or all amendments thereto, and to file the same with all the exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises in connection therewith, as fully to all extents and purposes as he or she might or could do in person, thereby ratifying and confirming all that such attorney-in-fact and agent, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue thereof.

This Power of Attorney may be executed in separate counterparts.

Dated:  February 25, 2013

/s/ Mickey P. Foret	/s/ Timothy R. McLevish
Mickey P. Foret	Timothy R. McLevish
Director	Director
/s/ William H. Frist	/s/ Joseph W. Ralston
William H. Frist	Joseph W. Ralston
Director	Director
/s/ Lydia H. Kennard	/s/ John D. Roach
Lydia H. Kennard	John D. Roach
Director	Director
/s/ Donald R. Knauss	/s/ Douglas W. Stotlar
Donald R. Knauss	Douglas W. Stotlar
Director	Director
/s/ Martin M. Koffel	/s/ William P. Sullivan
Martin M. Koffel	William P. Sullivan
Director	Director

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EX-31.1

EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATE

I, Martin M. Koffel, certify that:

1.   I have reviewed this Annual Report on Form 10-K of URS Corporation;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  February 25, 2013	By:	/s/ Martin M. Koffel
		Martin M. Koffel
		Chief Executive Officer

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EX-31.2

EXHIBIT 31.2

CHIEF FINANCIAL OFFICER CERTIFICATE

I, H. Thomas Hicks, certify that:

1.   I have reviewed this Annual Report on Form 10-K of URS Corporation;

2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.   The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)   Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)   Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.   The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  February 25, 2013	By:	/s/ H. Thomas Hicks
		H. Thomas Hicks
		Chief Financial Officer

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EX-32

EXHIBIT 32

CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER CERTIFICATION*

Pursuant to the requirement set forth in Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §1350), Martin M. Koffel, the Chief Executive Officer of URS Corporation (the “Company”), and H. Thomas Hicks, the Chief Financial Officer of the Company, each hereby certifies that, to the best of his knowledge:

1.   The Company’s Annual Report on Form 10-K for the period ended December 28, 2012, to which this Certification is attached as Exhibit 32, fully complies with the requirements of Section 13(a) or Section 15(d) of the Exchange Act, and

2.   The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  February 25, 2013	By:	/s/ Martin M. Koffel
		Martin M. Koffel
		Chief Executive Officer

Dated:  February 25, 2013	By:	/s/ H. Thomas Hicks
		H. Thomas Hicks
		Chief Financial Officer

* This certification accompanies the Form 10-K to which it relates, is not deemed “filed” with the Securities and Exchange Commission and is not to be or incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of the Form 10-K and irrespective of any general incorporation language contained in such filing.

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EX-95

EXHIBIT 95

MINE SAFETY DISCLOSURE

Section 1503 of the Dodd-Frank Wall Street Reform and Consumer Protection Act requires domestic mine operators to disclose violations and orders issued under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”) by the federal Mine Safety and Health Administration (“MSHA”).  We do not act as the owner of any mines but we may act as a mining operator as defined under the Mine Act where we may be a lessee of a mine, a person who operates, controls or supervises such mine, or as an independent contractor performing services or construction of such mine.  Due to timing and other factors, the data may not agree with the mine data retrieval system maintained by MSHA.

The following table provides information for the year ended December 28, 2012.

Mine (1)	Mine Act §104 Violations (2)	Mine Act §104(b) Orders (3)	Mine Act §104(d) Citations and Orders (4)	Mine Act §110(b)(2) Violations (5)	Mine Act §107(a) Orders (6)	Proposed Assessments from MSHA (In dollars ($))		Mining Related Fatalities	Mine Act §104(e) Notice (yes/no) (7)	Pending Legal Action before Federal Mine Safety and Health Review Commission (yes/no) (8)
Year ended December 28, 2012
Black Thunder Project	1	0	0	0	0	$	592	0	No	No
Monsanto Quarry	2	0	0	0	0	$	200	0	No	No
Pipestone Quarry	6	0	0	0	0	$	752	0	No	No
Morenci Project	0	0	0	0	0	$	0	0	No	No

(1)   United States mines.

(2)   The total number of violations received from MSHA under §104 of the Mine Act, which includes citations for health or safety standards that could significantly and substantially contribute to a serious injury if left unabated.

(3)   The total number of orders issued by MSHA under §104(b) of the Mine Act, which represents a failure to abate a citation under §104(a) within the period of time prescribed by MSHA.

(4)   The total number of citations and orders issued by MSHA under §104(d) of the Mine Act for unwarrantable failure to comply with mandatory health or safety standards.

(5)   The total number of flagrant violations issued by MSHA under §110(b)(2) of the Mine Act.

(6)   The total number of orders issued by MSHA under §107(a) of the Mine Act for situations in which MSHA determined an imminent danger existed.

(7)   A written notice from the MSHA regarding a pattern of violations, or a potential to have such pattern under §104(e) of the Mine Act.

(8)   The following Pending Legal Action Table provides information for the year ended December 28, 2012.

Mine	Number Pending Legal Actions	Pre-Penalty Contests of Citations/ Orders	Contests of Penalty Assessments	Legal Action Initiated in 2012	Legal Action Resolved in 2012
Year ended December 28, 2012
Black Thunder Project	0	0	0	0	0
Monsanto Quarry	0	1	1	1	1
Pipestone Quarry	0	0	1	1	0
Morenci Project	0	0	0	0	0

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XML

EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFIT PLANS (TABLES)

12 Months Ended

Dec. 28, 2012

Defined benefit pension plans, defined contribution plans, and defined benefit postretirement plans disclosure [Abstract]

Schedule of defined benefit pension plans benefit obligations and assumptions [Table Text Block]

										##SL
			Domestic Plans				Foreign Plans
			December 28,		December 30,		December 28,		December 30,
(In millions, except percentages)			2012		2011		2012		2011
Change in benefit obligation:
	Benefit obligation at beginning of year		$	383.3	$	350.2	$	447.9	$	418.6
	Service cost			7.5		6.8		0.6		0.6
	Interest cost			18.9		19.0		22.6		24.4
	Employee contributions			—		—		0.4		0.5
	Plan amendment			—		(1.1)		—		—
	Benefits paid and expenses			(16.6)		(16.0)		(14.9)		(15.5)
	Exchange rate changes			—		—		20.8		(3.9)
	Actuarial (gain) loss			50.3		24.4		8.5		23.2
		Benefit obligation at end of year	$	443.4	$	383.3	$	485.9	$	447.9
Change in plan assets:
	Fair value of plan assets at beginning of year		$	236.4	$	205.4	$	334.3	$	345.8
	Actual gain (loss) on plan assets			31.4		13.6		25.6		(2.5)
	Employer contributions			18.4		28.5		9.7		7.7
	Employer direct benefit payments			4.6		4.9		—		—
	Employee contributions			—		—		0.4		0.5
	Exchange rate changes			—		—		15.7		(1.7)
	Benefits paid and expenses			(16.6)		(16.0)		(14.9)		(15.5)
		Fair value of plan assets at end of year	$	274.2	$	236.4	$	370.8	$	334.3
Underfunded status reconciliation:
	Underfunded status		$	169.2	$	146.9	$	115.1	$	113.6
		Net amount recognized	$	169.2	$	146.9	$	115.1	$	113.6
Amounts recognized in our Consolidated Balance Sheets consist of:
	Accrued benefit liability included in current liabilities		$	5.1	$	4.9	$	—	$	—
	Accrued benefit liability included in other long-term liabilities			164.1		142.0		115.1		113.6
		Net amount recognized	$	169.2	$	146.9	$	115.1	$	113.6
Amounts recognized in accumulated other comprehensive income consist of:
	Prior service income		$	0.6	$	3.6	$	—	$	—
	Net gain (loss)			(140.5)		(113.6)		(41.6)		(34.8)
		Net amount recognized	$	(139.9)	$	(110.0)	$	(41.6)	$	(34.8)
Additional information:
	Accumulated benefit obligation		$	437.6	$	376.3	$	470.7	$	435.1
Weighted-average assumptions used to determine benefit obligations at year end:
	Discount rate			4.02%		5.05%		4.80%		5.00%
	Rate of compensation increase			4.50%		4.50%		2.80%		3.00%

Schedule of net periodic pension costs and other comprehensive income [Table Text Block]

			Years Ended
			Domestic Plans						Foreign Plans
			December 28,		December 30,		December 31,		December 28,		December 30,		December 31,
(In millions, except percentages)			2012		2011		2010		2012		2011		2010 (1)
Net periodic pension costs:
	Service cost		$	7.5	$	6.8	$	6.1	$	0.6	$	0.6	$	0.3
	Interest cost			18.9		19.0		18.5		22.6		24.4		7.7
	Expected return on plan assets			(17.7)		(16.4)		(15.9)		(22.2)		(22.9)		(7.2)
	Amortization of prior service cost			(3.0)		(3.2)		(3.2)		—		—		—
	Recognized actuarial loss			9.8		7.4		3.7		—		—		0.1
		Total net periodic pension costs	$	15.5	$	13.6	$	9.2	$	1.0	$	2.1	$	0.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
	Prior service cost		$	—	$	(1.1)	$	—	$	—	$	—	$	—
	Net loss (gain)			36.7		27.3		22.5		5.1		48.6		(17.4)
	Effect of exchange rate changes on amounts included in accumulated other comprehensive income			—		—		—		1.7		(1.9)		0.1
	Amortization or curtailment recognition of prior service credit			3.0		3.2		3.2		—		—		—
	Amortization or settlement recognition of net loss			(9.8)		(7.4)		(3.7)		—		—		(0.1)
		Total recognized in other comprehensive loss (income)	$	29.9	$	22.0	$	22.0	$	6.8	$	46.7	$	(17.4)
Total recognized in net periodic pension costs and other comprehensive loss (income)			$	45.4	$	35.6	$	31.2	$	7.8	$	48.8	$	(16.5)
Weighted-average assumptions used to determine net periodic cost for years ended:
	Discount rate			5.05%		5.55%		6.05%		5.00%		5.70%		5.45%
	Rate of compensation increase			4.50%		4.50%		4.50%		3.00%		3.45%		3.45%
	Expected long-term rate of return on plan assets			7.34%		7.44%		7.89%		7.00%		6.96%		6.67%
	Measurement dates			12/30/2011		12/31/2010		1/1/2010		12/30/2011		12/31/2010		1/1/2010

• Measurement date for the two Scott Wilson plans was September 10, 2010, the acquisition date. Net periodic pension costs and the amounts recognized in other comprehensive income (loss) for the Scott Wilson plans were partially included in the year ended December 31, 2010, as we completed the acquisition in September 2010.

Defined benefit pension plans target asset allocation [Table Text Block]

		Current Target Asset Allocation
		Domestic Plans		Foreign Plans
Equity securities			50%		28%
Debt securities			50%		35%
Real estate			—		6%
Hedge fund			—		26%
Other			—		5%
	Total		100%		100%

Defined benefit pension plans estimated future benefit payments [Table Text Block]

For the Fiscal Year:		Estimated Future Benefit Payments
(In millions)		Domestic Plans		Foreign Plans
2013		$	20.1	$	15.1
2014			37.0		15.4
2015			21.8		15.9
2016			22.4		16.3
2017			23.1		16.7
Next five fiscal years thereafter			123.5		90.4
	Total	$	247.9	$	169.8

Schedule of defined benefit post-retirement benefit plans benefit obligations and assumptions [Table Text Block]

			December 28,		December 30,
(In millions, except percentages)			2012		2011
Change in accumulated post-retirement benefit obligation:
	Accumulated post-retirement benefit obligation at beginning of year		$	41.9	$	40.1
	Service cost			0.2		0.1
	Interest cost			1.9		2.0
	Employee contributions			2.0		2.3
	Benefits paid and expenses			(5.8)		(7.0)
	Actuarial gain			3.4		4.4
		Accumulated post-retirement benefit obligation at end of year	$	43.6	$	41.9
Change in plan assets:
	Fair value of plan assets at beginning of year		$	3.2	$	3.6
	Actual gain (loss) on plan assets			(0.2)		(0.4)
	Employer contributions			—		0.5
	Employer direct benefit payments			3.9		4.2
	Employee contributions			2.0		2.3
	Benefits paid and expenses			(5.8)		(7.0)
		Fair value of plan assets at end of year	$	3.1	$	3.2
Funded status reconciliation:
	Underfunded status		$	40.5	$	38.7
		Net amount recognized	$	40.5	$	38.7
Amounts recognized in our Consolidated Balance Sheets consist of:
	Accrued post-retirement benefit liability included in current liabilities			3.3		3.2
	Accrued post-retirement benefit liability included in other long-term liabilities			37.2		35.5
		Net amount recognized	$	40.5	$	38.7
Amounts recognized in accumulated other comprehensive income consist of:
	Net gain (loss)		$	(7.3)	$	(4.1)
		Net amount recognized	$	(7.3)	$	(4.1)
Weighted-average assumptions used to determine benefit obligations at year end:
	Discount rate			3.48%		4.69%

Schedule of post-retirement benefit plans disclosures [Table Text Block]

			Years Ended
			December 28,		December 30,		December 31,
(In millions, except percentages)			2012		2011		2010
Net periodic post-retirement benefit costs:
	Service cost		$	0.2	$	0.1	$	0.1
	Interest cost			1.9		2.0		2.2
	Expected return on plan assets			(0.2)		(0.2)		(0.2)
	Recognized actuarial loss (gain)			0.6		(0.1)		(0.2)
		Total net periodic post- retirement benefit costs	$	2.5	$	1.8	$	1.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
	Net loss		$	3.8	$	5.0	$	0.2
	Amortization or settlement recognition of net (loss) gain			(0.6)		0.1		0.2
		Total recognized in other comprehensive loss	$	3.2	$	5.1	$	0.4
Total recognized in net periodic post- retirement benefit costs and other comprehensive loss			$	5.7	$	6.9	$	2.3
Weighted-average assumptions used to determine net periodic cost for years ended:
	Discount rate			4.69%		5.23%		5.72%
	Expected long-term rate of return on plan assets			7.50%		7.50%		8.00%
	Measurement dates			12/30/2011		12/31/2010		1/1/2010

		December 28,		December 30,
		2012		2011
Assumed blended health care cost trend rates at year-end:
	Health care cost trend rate assumed for next year		7.94%		7.97%
	Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.94%		4.94%
	Years that the rates reach the ultimate trend rate		2020/2024		2020/2024

Schedule of effect of one-percentage-point change in assumed health care cost trend rates [Table Text Block]

	1% Point
(In millions)	Increase		Decrease
Effect on total of service and interest cost components	$	0.1	$	0.1
Effect on post-retirement benefit obligation		1.9		1.7

Defined benefit post-retirement benefit plans target asset allocation [Table Text Block]

		Current Target Asset Allocation
Equity securities			50%
Debt securities			50%
	Total		100%

Defined benefit post-retirement benefit plan estimated future benefit payments and medicare subsidy receipts [Table Text Block]

For the Fiscal Year: (In millions)		Estimated Future Benefit Payments		Estimated Medicare Subsidy Receipts
2013		$	3.6	$	0.4
2014			3.6		0.4
2015			3.7		0.4
2016			3.6		0.3
2017			3.6		0.3
Next five fiscal years thereafter			15.8		1.1
	Total	$	33.9	$	2.9

Schedule of fair values of defined benefit pension plans and post-retirement benefit plan assets [Table Text Block]

		Total		Fair Value Measurement as of December 28, 2012
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 28,		Active Markets		Observable Inputs		Inputs
(In millions)		2012		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents		$	21.0	$	8.0	$	13.0	$	—
U.S. equity funds			74.4		—		74.4		—
International equity funds			166.8		—		166.8		—
Fixed income securities			264.9		—		264.9		—
International property fund			117.9		—		117.9		—
	Total	$	645.0	$	8.0	$	637.0	$	—
		Total		Fair Value Measurement as of December 30, 2011
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 30,		Active Markets		Observable Inputs		Inputs
(In millions)		2011		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents		$	5.7	$	2.3	$	3.4	$	—
U.S. equity funds			78.8		—		78.8		—
International equity funds			162.6		—		162.6		—
Fixed income securities			223.3		—		223.3		—
International property fund			100.3		—		100.3		—
	Total	$	570.7	$	2.3	$	568.4	$	—

		Total		Fair Value Measurement as of December 28, 2012
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 28,		Active Markets		Observable Inputs		Inputs
(In millions)		2012		(Level 1)		(Level 2)		(Level 3)
U.S. equity funds		$	0.8	$	—	$	0.8	$	—
International equity funds			0.7		—		0.7		—
International property fund			1.6		—		1.6		—
	Total	$	3.1	$	—	$	3.1	$	—
		Total		Fair Value Measurement as of December 30, 2011
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 30,		Active Markets		Observable Inputs		Inputs
(In millions)		2011		(Level 1)		(Level 2)		(Level 3)
U.S. equity funds		$	1.0	$	—	$	1.0	$	—
International equity funds			0.6		—		0.6		—
International property fund			1.6		—		1.6		—
	Total	$	3.2	$	—	$	3.2	$	—

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INDEBTEDNESS (DETAILS) In Millions, unless otherwise specified	12 Months Ended														12 Months Ended
	Dec. 28, 2012 USD ($)	Dec. 28, 2012 CAD	Dec. 30, 2011 USD ($)	Dec. 28, 2012 Senior Debt Obligations [Member] USD ($)	Dec. 28, 2012 Senior Notes, Five Year Term [Member] USD ($)	Dec. 28, 2012 Senior Notes, Ten Year Term [Member] USD ($)	Dec. 28, 2012 Senior Canadian Notes [Member] USD ($)	Dec. 28, 2012 Redeemable Period 1 [Member]	Dec. 28, 2012 Redeemable period 2 [Member]	Dec. 28, 2012 Redeemable Period 3 [Member]	Dec. 28, 2012 Redeemable Period 4 [Member]	Dec. 28, 2012 Redeemable Period 5 [Member]	Dec. 28, 2012 Foreign Line of Credit [Member] USD ($)	Dec. 30, 2011 Foreign Line of Credit [Member] USD ($)	Dec. 28, 2012 Revolving Line of Credit [Member] USD ($)	Dec. 30, 2011 Revolving Line of Credit [Member] USD ($)	Dec. 31, 2010 Revolving Line of Credit [Member] USD ($)	Dec. 28, 2012 Credit Facility Term Loan [Member] USD ($)	Dec. 30, 2011 Credit Facility Term Loan [Member] USD ($)
Capital leases, future minimum payments due [Abstract]
Less than one year	$ 29.9
Second year	11.7
Third year	9.6
Fourth year	7.6
Fifth year	3.5
Total minimum lease payments	62.3
Less: amounts representing interest	3.1
Present value of net minimum lease payments	59.2
Costs incurred for extinguishment of debt [Abstract]
Costs incurred for extinguishment of debt			2.9
Indebtedness [Abstract]
Bank term loans, net of debt issuance costs	666.3		695.1
Senior Notes (net of discount)				999.0	399.5	599.5	203.8
Revolving line of credit	100.5		23.0
Other indebtedness	94.7		80.4
Total indebtedness	2,064.3		798.5
Outstanding debt				1,200.0														670.0	700.0
Interest rate at period end																		1.71%	1.80%
Senior credit facility [Abstract]
2011 Credit Facility term loan, description of variable rate basis	London Interbank Offered Rate (“LIBOR”)	London Interbank Offered Rate (“LIBOR”)
2011 Credit Facility term loan, basis spread on variable rate																		1.50%
Line of credit facility, maximum borrowing capacity													50.8	33.7
Subsidiary guarantors percent threshold individual basis																		10.00%
Subsidiary guarantors percent threshold consolidated basis																		80.00%
Repayment of revolving line of credit	583.6		115.7
Senior Notes and Canadian Notes [Abstract]
Senior Notes, unamortized discount				1.0
Senior Notes, unamortized premium							28.0
Senior Notes, aggregate principal amount					400.0	600.0
Senior Notes, interest rate, stated percentage					3.85%	5.00%	7.50%
Senior Notes, special mandatory redemption price percent of principal				100.00%
Senior Notes, issuer redemption price in whole percent of principal				100.00%
Senior Notes, change of control triggering event redemption price percent of principal				101.00%			101.00%
Senior Notes, future indebtedness threshold for guarantors				100.0
Canadian Notes, maximum percent of principal redeemable								35.00%
Canadian Notes, issuer redemption price percent of principal								107.50%
Canadian Notes, minimum percent of principal remaining outstanding after redemption								65.00%
Canadian Notes, issuer redemption price percent of principal plus applicable premium									100.00%	103.80%	101.90%	100.00%
Maximum additional interest until completion of exchange offer				0.50%
Business acquisition [Abstract]
Business acquisition - liabilities assumed	175.0	175.0
Revolving line of credit [Abstract]
Letters of credit issued, amount															132.0
Amounts available on our revolving credit facility															767.5
Average daily revolving line of credit balances															139.5	25.9	0.3
Maximum amounts outstanding at any one point															420.0	104.6	12.1
Effective average interest rates paid on the revolving line of credit															1.90%	1.30%	3.00%
Other indebtedness [Abstract]
Notes payable, five-year loan notes, and foreign credit lines	35.5		53.1
Notes payable, weighted-average interest rate	4.68%	4.68%	4.04%
Obligations under capital leases	59.2		27.3
Line of credit facility, aggregate borrowing capacity													50.8	33.7
Line of credit facility, remaining borrowing capacity													47.7	23.2
Long-term debt, by maturity [Abstract]
First year	43.4
Second year	60.1
Third year	71.8
Fourth year	626.8
Fifth year	399.8
Thereafter	803.2
Total	$ 2,005.1

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ACCOUNTS RECEIVABLE AND COSTS AND ACCRUED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS (DETAILS) (USD $) In Millions, unless otherwise specified	Dec. 28, 2012	Dec. 30, 2011
Accounts receivable and costs and accrued earnings in excess of billings on contracts (Textuals) [Abstract]
Receivables with contractual terms in excess of one year	$ 121.4	$ 78.1
Schedule of accounts receivable and costs and accrued earnings in excess of billings on contracts [Line Items]
Total accounts receivable	1,554.8	1,114.7
Unbilled Accounts Receivable	1,649.2	1,317.0
Less: Amounts included in Other long-term assets	(264.9)	(185.0)
Costs and accrued earnings in excess of billings on contracts	1,384.3	1,132.0
US Federal Government [Member]
Schedule of accounts receivable and costs and accrued earnings in excess of billings on contracts [Line Items]
Total accounts receivable	376.2	391.2
Unbilled Accounts Receivable	892.7	758.8
Others [Member]
Schedule of accounts receivable and costs and accrued earnings in excess of billings on contracts [Line Items]
Total accounts receivable	1,178.6	723.5
Unbilled Accounts Receivable	$ 756.5	$ 558.2

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INDEBTEDNESS (DETAILS 2) (USD $) In Millions, unless otherwise specified	Dec. 28, 2012	Dec. 30, 2011
Total indebtedness [Abstract]
Total indebtedness	$ 2,064.3	$ 798.5
Current portion of long-term debt	71.8	61.5
Long-term debt	$ 1,992.5	$ 737.0

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BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES (DETAILS) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2012 countries employees	Sep. 28, 2012	Jun. 29, 2012	Mar. 30, 2012	Dec. 30, 2011	Sep. 30, 2011	Jul. 01, 2011	Apr. 01, 2011	Dec. 28, 2012 countries employees	Dec. 30, 2011	Dec. 31, 2010
Cash and cash equivalents (Textuals) [Abstract]
Restricted cash and cash equivalents	$ 17.1				$ 21.0				$ 17.1	$ 21.0
Organization, consolidation and presentation of financial statements, as shown (Textuals) [Abstract]
Entity number of employees	54,000								54,000
Number of countries in which entity operates	50								50
Condensed Consolidated Statements of Operations Data [Abstract]
Income (loss) before income taxes									615.7	(245.5)	513.8
Income tax benefit (expense)	(34.7)	(66.1)	(40.5)	(48.6)	(46.8)	39.5	(45.5)	(39.0)	(189.9)	(91.8)	(127.6)
Net income (loss) including noncontrolling interests	113.4	127.8	79.1	105.5	60.6	(585.8)	100.0	87.9	425.8	(337.3)	386.2
Noncontrolling interests in income of consolidated subsidiaries	(42.8)	(21.1)	(25.5)	(25.8)	(32.2)	(37.3)	(33.2)	(25.8)	(115.2)	(128.5)	(98.3)
Net income (loss) attributable to URS	70.6	106.7	53.6	79.7	28.4	(623.1)	66.8	62.1	310.6	(465.8)	287.9
Effective income tax rate %								(3.60%)	30.80%	(37.40%)	24.80%
Condensed Consolidated Statements of Comprehensive Income Data [Abstract]
Comprehensive income (loss)									423.4	(411.2)	398.5
Condensed Consolidated Statements of Changes in Stockholders Equity Data [Abstract]
Distributions to noncontrolling interests									(83.8)	(111.7)	(107.2)
Condensed Consolidated Statements of Cash Flows Data [Abstract]
Accounts payable, accrued salaries and employee benefits, and other current liabilities									(13.6)	(43.0)	(67.6)
Other long-term liabilities									$ (10.6)	$ 13.0	$ 22.5

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PROPERTY AND EQUIPMENT (TABLES)

12 Months Ended

Dec. 28, 2012

Property plant and equipment [Abstract]

Property and equipment [Table Text Block]

		December 28,		December 30,
(In millions)		2012		2011
Construction and mining equipment		$	266.4	$	95.3
Computer software			219.5		186.3
Computer hardware			198.2		186.8
Vehicles and automotive equipment			172.2		7.7
Leasehold improvements			130.1		109.0
Land and buildings			114.1		9.2
Furniture and fixtures			97.7		91.5
Other equipment			72.4		70.8
Construction in progress			15.6		0.2
			1,286.2		756.8
Accumulated depreciation and amortization			(598.7)		(487.4)
	Property and equipment at cost, net (1)	$	687.5	$	269.4

• The unamortized computer software costs were $71.1 million and $60.8 million, respectively, as of December 28, 2012 and December 30, 2011. The increases in property and equipment were mainly due to our acquisition of Flint.

Property plant and equipment estimated useful lives [Table Text Block]

	Estimated Useful Lives
Computer software and hardware and other equipment	3 – 10 years
Vehicles and automotive equipment	3 – 12 years
Construction and mining equipment	3 – 15 years
Furniture and fixtures	3 – 10 years
Leasehold improvements (1)	1 – 20 years
Buildings	10 – 45 years

• Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less.

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BILLINGS IN EXCESS OF COSTS AND ACCRUED EARNINGS ON CONTRACTS (DETAILS) (USD $) In Millions, unless otherwise specified	Dec. 28, 2012	Dec. 30, 2011
Components Of Billings In Excess Of Cost And Accrued Earnings On Contracts [Abstract]
Billings in excess of costs and accrued earnings on contracts	$ 211.7	$ 216.4
Project-related legal liabilities and other project-related reserves	55.2	38.0
Advance payments negotiated as a contract condition	9.8	24.6
Normal profit liabilities	4.8	12.7
Estimated losses on uncompleted contracts	7.6	19.1
Total billings in excess of costs and accrued earnings on contracts	$ 289.1	$ 310.8

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OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE18. OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The accumulated balances and reporting period activities related to each component of other comprehensive income (loss) are summarized as follows:

(In millions)			Pension and Post-retirement Related Adjustments (1)		Foreign Currency Translation Adjustments		Loss on Derivative Instruments		Unrealized Gain (Loss) on Interest Rate Swaps		Accumulated Other Comprehensive Income (Loss)
Balances at January 1, 2010			$	(45.4)	$	0.4	$	—	$	(4.2)	$	(49.2)
	Pre-tax amount			(5.1)		8.8		—		7.0		10.7
	Tax benefit (expense)			4.4		—		—		(2.8)		1.6
		Total 2010 adjustments, net of tax		(0.7)		8.8		—		4.2		12.3
Balances at December 31, 2010			$	(46.1)	$	9.2	$	—	$	—	$	(36.9)
	Pre-tax amount			(73.4)		(11.2)		—		—		(84.6)
	Tax benefit (2)			10.7		—		—		—		10.7
		Total 2011 adjustments, net of tax		(62.7)		(11.2)		—		—		(73.9)
Balances at December 30, 2011			$	(108.8)	$	(2.0)	$	—	$	—	$	(110.8)
	Pre-tax amount			(39.9)		24.8		(1.0)		—		(16.1)
	Tax benefit			13.3		—		0.4		—		13.7
		Total 2012 adjustments, net of tax		(26.6)		24.8		(0.6)		—		(2.4)
Balances at December 28, 2012			$	(135.4)	$	22.8	$	(0.6)	$	—	$	(113.2)

• For fiscal year 2012, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $45.6 million of net loss arising during the year, $7.4 million of amortization of prior service credit and net loss, and $1.7 million of before-tax effect of changes in foreign currency exchange rates. For fiscal year 2011,pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $80.9 million of net loss arising during the year, $4.1 million of amortization of prior service credit and net loss, and $1.9 million of before-tax effect of changes in foreign currency exchange rates. For fiscal year 2010,pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $5.3 million of net loss arising during the year, $0.4 million of amortization of prior service credit and net loss, and $0.1 million of before-tax effect of changes in foreign currency exchange rates.
• The tax benefit has been reduced by a valuation allowance of $11.6 million in 2011.

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JOINT VENTURES (DETAILS) (USD $) In Millions, unless otherwise specified	3 Months Ended												12 Months Ended
	Dec. 28, 2012		Sep. 28, 2012		Jun. 29, 2012		Mar. 30, 2012		Dec. 30, 2011	Sep. 30, 2011	Jul. 01, 2011	Apr. 01, 2011	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010		Jan. 01, 2010
Joint ventures (Textuals) [Abstract]
Unconsolidated VIEs, Distributions													$ 88.7		$ 107.3		$ 92.5
Example of the joint venture activities													Engineering, procurement and construction of a concrete dam; Liquid waste management services, including the decontamination of a former nuclear fuel reprocessing facility and nuclear hazardous waste processing; Management of ongoing tank cleanup effort, including retrieving, treating, storing and disposing of nuclear waste that is stored at tank farms; Management and operation services, including commercial operations, decontamination, decommissioning, and waste management of a nuclear facility in the United Kingdom (“U.K.”); and Operations, maintenance, asset management services to the Canadian energy sector.
Maximum loss exposure that can not be quantified													In addition to potential losses arising out of the carrying values of the assets and liabilities of our unconsolidated joint ventures, our maximum exposure to loss also includes performance assurances and guarantees we sometimes provide to clients on behalf of joint ventures that we do not directly control. We enter into these guarantees primarily to support the contractual obligations associated with the joint ventures’ projects. The potential payment amount of an outstanding performance guarantee is typically the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts. However, the nature of these costs are such that we are not able to estimate amounts that may be required to be paid in excess of estimated costs to complete contracts and, accordingly, the exposure to loss as a result of these performance guarantees cannot be calculated.
SR-125 Project [Abstract]
Litigation settlement gross											9.5
Asset impairment charge for an unconsolidated joint venture																	25.0
Consolidated Joint Ventures [Abstract]
Cash and cash equivalents	314.5								436.0				314.5		436.0		573.8		721.1
Net accounts receivable	2,869.4								2,203.6				2,869.4		2,203.6
Other current assets	204.2								181.8				204.2		181.8
Accounts and subcontractors payable	803.5								659.1				803.5		659.1
Billings in excess of costs and accrued earnings on contracts	289.1								310.8				289.1		310.8
Accrued expenses and other	277.8								176.5				277.8		176.5
Total URS equity	3,621.1								3,377.2				3,621.1		3,377.2
Noncontrolling interests	141.9								107.2				141.9		107.2
Unconsolidated Joint Ventures [Abstract]
Current assets	3,517.2								2,903.9				3,517.2		2,903.9
Current liabilities	2,001.0								1,734.9				2,001.0		1,734.9
Revenues	2,972.7		2,947.6		2,690.7		2,361.5		2,393.2	2,471.7	2,360.3	2,319.8	10,972.5		9,545.0		9,177.1
Cost of revenues	(2,810.5)		(2,753.3)		(2,527.5)		(2,203.2)		(2,257.7)	(2,300.1)	(2,228.3)	(2,202.7)	(10,294.5)		(8,988.8)		(8,609.5)
Income (loss) from continuing operations before taxes													615.7		(245.5)		513.8
Net income	70.6		106.7		53.6		79.7		28.4	(623.1)	66.8	62.1	310.6		(465.8)		287.9
Asset impairment charge for an unconsolidated joint venture																	25.0
Sale of Equity Investment [Abstract]
Other income, net	(3.6)	[1]	10.8	[1]	(9.2)	[1]	2.5	[1]					0.5
Consolidated Joint Ventures [Member]
Consolidated Joint Ventures [Abstract]
Cash and cash equivalents	80.1								91.4				80.1		91.4
Net accounts receivable	282.2								246.8				282.2		246.8
Other current assets	2.9								1.5				2.9		1.5
Non-current assets	143.3								103.4				143.3		103.4
Total assets	508.5								443.1				508.5		443.1
Accounts and subcontractors payable	185.0								151.9				185.0		151.9
Billings in excess of costs and accrued earnings on contracts	8.7								35.2				8.7		35.2
Accrued expenses and other	40.0								30.6				40.0		30.6
Non-current liabilities	22.7								15.2				22.7		15.2
Total liabilities	256.4								232.9				256.4		232.9
Total URS equity	110.2								103.0				110.2		103.0
Noncontrolling interests	141.9								107.2				141.9		107.2
Total owners' equity	252.1								210.2				252.1		210.2
Total liabilities and owners' equity	508.5								443.1				508.5		443.1
Unconsolidated Joint Ventures [Abstract]
Revenues	0								0				1,600.0		1,700.0		1,700.0
Unconsolidated VIEs [Member]
Consolidated Joint Ventures [Abstract]
Non-current assets	23.8								8.8				23.8		8.8
Non-current liabilities	7.8								0.1				7.8		0.1
Unconsolidated Joint Ventures [Abstract]
Current assets	594.1								457.6				594.1		457.6
Current liabilities	372.5								288.1				372.5		288.1
Revenues													1,662.2	[2]	1,498.0	[2],[3]	1,409.7	[2],[3]
Cost of revenues													(1,440.6)	[2]	(1,201.5)	[2],[3]	(1,225.2)	[2],[3]
Income (loss) from continuing operations before taxes													221.6	[2]	296.5	[2],[3]	184.5	[2],[3]
Net income													$ 206.0	[2]	$ 274.7	[2],[3]	$ 169.6	[2],[3]

[1] During fiscal 2012, “Other income (expenses)” represents foreign currency gains (losses) recognized on intercompany financing arrangements and foreign currency forward contracts. See further discussion in Note 11, “Fair Value of Debt Instruments and Derivative Instruments.”

[2] Income from unconsolidated U.S. joint ventures is generally not taxable in most tax jurisdictions in the U.S. The tax expenses on our other unconsolidated joint ventures are primarily related to foreign taxes.

[3] In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders. As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

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COMMITMENTS AND CONTINGENCIES (TABLES)

12 Months Ended

Dec. 28, 2012

Lease Obligations [Abstract]

Obligations under non-cancelable operating lease agreements [Table Text Block]

(In millions)		Operating Leases
2013		$	224.9
2014			151.7
2015			116.0
2016			86.6
2017			58.9
Thereafter			162.9
	Total minimum lease payments	$	801.0

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BILLINGS IN EXCESS OF COSTS AND ACCRUED EARNINGS ON CONTRACTS (TABLES)

12 Months Ended

Dec. 28, 2012

Components Of Billings In Excess Of Cost And Accrued Earnings On Contracts [Abstract]

Billings in excess of costs and accrued earnings on contracts [Table Text Block]

		December 28,		December 30,
(In millions)		2012		2011
Billings in excess of costs and accrued earnings on contracts		$	211.7	$	216.4
Project-related legal liabilities and other project-related reserves			55.2		38.0
Advance payments negotiated as a contract condition			9.8		24.6
Normal profit liabilities			4.8		12.7
Estimated losses on uncompleted contracts			7.6		19.1
	Total	$	289.1	$	310.8

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ACQUISITION (DETAILS)	3 Months Ended																12 Months Ended								12 Months Ended
	Dec. 28, 2012 USD ($)		Sep. 28, 2012 USD ($)		Jun. 29, 2012 USD ($)		Mar. 30, 2012 USD ($)		Dec. 30, 2011 USD ($)		Sep. 30, 2011 USD ($)		Jul. 01, 2011 USD ($)		Apr. 01, 2011 USD ($)		Dec. 28, 2012 USD ($)		Dec. 28, 2012 CAD	Dec. 30, 2011 USD ($)		Dec. 31, 2010 USD ($)		Dec. 28, 2012 Apptis acquisition [Member] USD ($)	Dec. 28, 2012 Flint acquisition [Member] USD ($) employees offices	Dec. 28, 2012 Flint acquisition [Member] CAD	Dec. 30, 2011 Flint acquisition [Member] USD ($)		Dec. 28, 2012 Flint acquisition [Member] Maximum [Member]	Dec. 28, 2012 Flint acquisition [Member] Minimum [Member]
Business acquisition [Line Items]
Business acquisition - date of acquisition agreement																									May 14, 2012	May 14, 2012
Cash paid to acquire entity																									$ 1,240,000,000	1,240,000,000
Acquisition-related expenses			800,000	[1]	(11,300,000)	[1]	(5,600,000)	[1]					(1,000,000)				(16,100,000)			(1,000,000)		(11,900,000)			(16,100,000)
Preliminary allocation of purchase price [Abstract]
Cash and cash equivalents																								18,000,000	4,000,000
Trade and other receivables																								60,000,000	544,000,000
Inventory																									61,000,000
Other current assets																								8,000,000	32,000,000
Investments in and advances to unconsolidated joint ventures																									147,000,000
Property and equipment																								20,000,000	420,000,000
Other long-term assets																								10,000,000	10,000,000
Customer relationships, contracts and backlog																								60,000,000	159,000,000
Trade names																								4,000,000	94,000,000
Other																									13,000,000
Total amount allocated to identifiable intangible assets																								64,000,000	266,000,000
Current liabilities																								(76,000,000)	(244,000,000)
Net deferred tax liabilities																								(5,000,000)	(77,000,000)
Long-term debt																									(236,000,000)
Long-term liabilities																								(16,000,000)	(31,000,000)
Total identifiable net assets acquired																								83,000,000	896,000,000
Goodwill																								200,000,000	456,000,000
Total purchase price																								283,000,000	1,352,000,000
Estimated useful life - customer relationships, contracts and backlog																													13 years 0 months 0 days	1 year 0 months 0 days
Estimated useful life - trade name and other																	12 years		12 years										40 years 0 months 0 days	1 year 0 months 0 days
Estimated useful life - favorable leases and other																													13 years 0 months 0 days	1 year 0 months 0 days
Estimated useful life - other intangible assets																													40 years 0 months 0 days	3 years 0 months 0 days
Tax-deductible portion of acquired goodwill	223,200,000								316,500,000								223,200,000			316,500,000				64,000,000
Business acquisition [Abstract]
Business acquisition - date of acquisition agreement																									May 14, 2012	May 14, 2012
Business acquisition - cost of acquired entity per share																										25.00
Business acquisition - cost of acquired entity cash paid																									1,240,000,000	1,240,000,000
Business acquisition - liabilities assumed																	175,000,000		175,000,000						175,000,000	175,000,000
Business acquisition - number of employees acquired																									11,000	11,000
Business acquisition - number of offices acquired																									80	80
Business acquisition - revenues	2,972,700,000		2,947,600,000		2,690,700,000		2,361,500,000		2,393,200,000		2,471,700,000		2,360,300,000		2,319,800,000		10,972,500,000			9,545,000,000		9,177,100,000			1,500,000,000
Business acquisition - operating income	171,400,000	[2],[3]	203,600,000	[2]	149,500,000	[2]	161,400,000	[2]	114,100,000	[4]	(620,200,000)	[3],[4]	150,600,000	[4]	132,100,000	[4]	685,900,000	[5]		(223,400,000)	[5]	544,400,000	[5]		61,200,000
Business acquisition, pro forma information [Abstract]
Revenues																									11,785,800,000		11,128,700,000
Net income including noncontrolling interests																									409,100,000		(429,800,000)
Net income attributable to URS																									292,900,000		(558,300,000)
Basic EPS																									$ 3.94		$ (7.22)
Diluted EPS																									$ 3.93		$ (7.22)
Business acquisition, pro forma nonrecurring adjustments [Abstract]
Acquisition-related expense																									27,700,000		(27,500,000)	[6]
Voting interest percentage in unconsolidated joint venture arising from acquisition																									50.00%	50.00%
Excess fair value over underlying equity interest																									128,500,000
Intangible assets																									38,000,000
Other indebtedness																									31,600,000
Other indebtedness that was repaid																									110,300,000
Amortization of acquired intangible assets																									34,100,000
Amortization of intangible assets associated with unconsolidated joint ventures																									$ 5,900,000

[1] For the year ended December 28, 2012, we recorded acquisition-related expenses in connection with our acquisition of Flint. See further discussion in Note 8, “Acquisitions.”

[2] For the first quarter of 2012, we revised our operating income from $163.9 million, as previously reported in our 10-Q, to $161.4 million due to the reclassification of a $2.5 million gain recognized on foreign currency forward contracts from “General and administrative expenses” to “Other income (expenses)” on our Consolidated Statements of Operations. This revision had no impact on net income attributable to URS or EPS.

[3] The operating income (loss) for the three##D<curpermonth> months ended ##D<priorperiod> includes a $798.1 million goodwill impairment charge.

[4] In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders. As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

[5] The operating income (loss) for the year ended December 30, 2011 included a $825.8 million goodwill impairment charge. See Note 9, “Goodwill and Intangible Assets” for more information.

[6] Included in the pro forma results for the year ended December 30, 2011 is a nonrecurring adjustment related to URS and Flint acquisition-related expenses. These expenses were included in the fiscal year 2011 pro forma results as if the acquisition occurred at the beginning of that fiscal year.

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RECEIVABLE AND DEFERRED INCOME TAX VALUATION ALLOWANCES (DETAILS) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Valuation Allowance [Line Items]
Other	$ 11.6
Allowance for Trade Receivables [Member]
Valuation Allowance [Line Items]
Balance at the Beginning of the Periods	43.1		42.8		47.7
Additions (Charged to Bad Debt Expenses)	6.6		2.8		6.7
Additions (Charged to Other Accounts)	27.4	[1]	16.1	[1]	8.9	[1]
Deductions	(7.4)	[2]	(18.6)	[2]	(20.5)	[2]
Balance at the End of the Periods	69.7		43.1		42.8
Valuation Allowance of Deferred Tax Assets [Member]
Valuation Allowance [Line Items]
Balance at the Beginning of the Periods	124.0		104.2		87.6
Additions (Charged to Other Accounts)	3.1	[1]	23.5	[1]	21.4	[1]
Deductions	(1.1)	[2]	(15.3)	[2]	(8.0)	[2]
Other	11.6	[3]	11.6	[3]	3.2	[3]
Balance at the End of the Periods	$ 137.6		$ 124.0		$ 104.2

[1] These additions were primarily charged to revenues or income tax expense.

[2] Deductions to the deferred income tax valuation allowance were primarily attributed to foreign and state NOL expirations, change in tax rates and the use of federal and state NOLs.

[3] Other adjustments to the deferred income tax valuation allowance during the year ended December 28, 2012 were attributable to acquired deferred taxes through the Flint acquisition. For the year ended December 30, 2011, other adjustments to the deferred income tax valuation allowance were charged to other comprehensive income. For the year ended December 31, 2010, other adjustments to the deferred income tax valuation allowance were attributable to acquired deferred taxes on foreign net operating losses through the Scott Wilson acquisition.

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STOCKHOLDERS' EQUITY (DETAILS) (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended																	12 Months Ended									12 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 31, 2010	Dec. 28, 2012 Stock Options [Member] years		Dec. 30, 2011 Stock Options [Member] years		Dec. 31, 2010 Stock Options [Member] years		Dec. 28, 2012 Employee Stock Purchase Plan [Member]	Dec. 30, 2011 Employee Stock Purchase Plan [Member]	Dec. 31, 2010 Employee Stock Purchase Plan [Member]	Dec. 28, 2012 Restricted Stock Awards And Units [Member]	Dec. 30, 2011 Restricted Stock Awards And Units [Member]	Dec. 31, 2010 Restricted Stock Awards And Units [Member]	Dec. 28, 2012 Restricted Stock Awards (RSAs) [Member]	Dec. 28, 2012 Restricted Stock Units (RSUs) [Member]	Dec. 28, 2012 Common Stock Cash Dividends Period 1 [Member]	Dec. 28, 2012 Common Stock Cash Dividends Period 2 [Member]	Dec. 28, 2012 Common Stock Cash Dividends Period 3 [Member]	Dec. 28, 2012 Common Stock Cash Dividends Period 4 [Member]	Dec. 28, 2012 Common Stock [Member]	Dec. 30, 2011 Common Stock [Member]	Dec. 31, 2010 Common Stock [Member]	Dec. 28, 2012 Common Stock [Member] Stock Repurchase Program Authorized Shares - Minimum [Member]	Feb. 25, 2011 Common Stock [Member] Stock Repurchase Program Authorized Shares - Minimum [Member]	Dec. 28, 2012 Common Stock [Member] Stock Repurchase Program Authorized Shares - Maximum [Member]	Feb. 25, 2011 Common Stock [Member] Stock Repurchase Program Authorized Shares - Maximum [Member]
Dividends [Line Items]
Dividends payable - declaration date																		Feb. 24, 2012	May 04, 2012	Aug. 03, 2012	Nov. 02, 2012
Dividends payable - record date																		Mar. 16, 2012	Jun. 15, 2012	Sep. 14, 2012	Dec. 14, 2012
Dividends payable - payment date																		Apr. 06, 2012	Jul. 06, 2012	Oct. 05, 2012	Jan. 04, 2013
Dividends payable - amount per share	$ 0.80																	$ 0.20	$ 0.20	$ 0.20	$ 0.20
Cash dividends declared	$ 61.4
Dividends payable - total amount paid	44.7																	15.2	15.4	15.4	15.4
Share-based compensation arrangement by share-based payment award [Line Items]
Restricted stock issued																3.5
Restricted stock shares available for future grant													1.0
Stock-based compensation expense
Stock-based compensation expense	43.6	45.3	44.0							0.5	0.5	0.4	43.1	44.8	43.6
Stock-based compensation expense included in cost of revenues	33.2	35.1	34.0
Stock-based compensation expense included in general and administrative expenses	10.4	10.2	10.0
Stock-based compensation expense	43.6	45.3	44.0							0.5	0.5	0.4	43.1	44.8	43.6
Total income tax benefits recognized in our net income related to stock-based compensation expense	16.0	17.3	16.9
Share-based compensation arrangement by share-based payment award, options, additional disclosures (Textuals) [Abstract]
Common stock closing market price				$ 38.71
Share-based compensation arrangement by share-based payment award, options, exercises in period, total intrinsic value				2.9		2.5		3.0
Employee service share-based compensation, aggregate disclosures (Textuals) [Abstract]
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized													82.6
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition	2 years 6 months 0 days
Schedule of share-based compensation, restricted stock fair value (Table) [Abstract]
Fair value of shares vested													42.0	41.8
Grant date fair values of restricted stock awards and units granted													54.3	42.1
Shares
Nonvested restricted stock awards and units - beginning balance													2.4				0.5
Nonvested restricted stock awards and units granted													1.4
Nonvested restricted stock awards and units vested													1.0
Nonvested restricted stock awards and units forfeited													0.1
Nonvested restricted stock awards and units - ending balance													2.7	2.4			0.5
Weighted Average Grant Date Fair Value
Nonvested restricted stock awards and units, weighted-average grant date fair value - beginning balance													$ 42.86
Nonvested restricted stock awards and units granted, weighted-average grant date fair value													$ 36.79
Nonvested restricted stock awards and units vested, weighted-average grant date fair value													$ 41.69
Nonvested restricted stock awards and units forfeited, weighted-average grant date fair value													$ 42.44
Nonvested restricted stock awards and units, weighted-average grant date fair value - ending balance													$ 40.03	$ 42.86
Stock Options Rollforward
Share-based compensation arrangement by share-based payment award, options, outstanding, number, beginning balance				0.5		0.6		0.7
Share-based compensation arrangement by share-based payment award, options, exercises in period				(0.2)		(0.1)		(0.1)
Share-based compensation arrangement by share-based payment award, options, forfeitures and expirations in period				0	[1]	0	[1]	0	[1]
Share-based compensation arrangement by share-based payment award, options, outstanding, number, ending balance				0.3		0.5		0.6
Weighted-Average Exercise Price
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted-average exercise price, beginning balance				$ 23.55		$ 23.38		$ 22.99
Share-based compensation arrangement by share-based payment award, options, exercises in period, weighted-average exercise price				$ 22.29		$ 22.80		$ 21.03
Share-based compensation arrangement by share-based payment award, options, forfeitures in period, weighted-average exercise price				$ 24.36		$ 22.30		$ 18.13
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted-average exercise price, ending balance				$ 24.28		$ 23.55		$ 23.38
Weighted-Average Remaining Contractual Term (in years)
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted-average remaining contractual term, beginning balance				1.83		2.62		3.46
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted-average remaining contractual term, ending balance				1.27		1.83		2.62
Aggregate Intrinsic Value
Share-based compensation arrangement by share-based payment award, options, exercisable, intrinsic value, beginning balance				5.8		11.7		16.5
Share-based compensation arrangement by share-based payment award, options, exercisable, intrinsic value, ending balance				4.5		5.8		11.7
Employee Stock Purchase Plan [Abstract]
Employee stock purchase plan percent of compensation limitation										10.00%
Employee stock purchase plan share price percent of fair value										95.00%
Employee stock purchase plan stock issued during period, shares										0.1	0.2	0.2
Employee stock purchase plan stock issued during period, value										8.9	11.7	11.3
Equity, class of treasury stock [Line Items]
Shares of common stock repurchased																						1.0	6.0	3.0
Common stock repurchase - average price paid per share																						$ 40.00	$ 40.47	$ 42.75
Cost of common stock repurchased	$ 40.0	$ 242.8	$ 128.3																			$ 40.0	$ 242.8	$ 128.3
Schedule of stock repurchase program [Abstract]
Stock repurchase program number of shares authorized to be repurchased																										3.0		8.0
Stock repurchase program authorized number of shares - year one																									3.0		6.0
Stock repurchase program authorized number of shares - year two																									3.0		6.0
Stock repurchase program authorized number of shares - year three																									3.0		6.0

[1] Represents fewer than fifty thousand shares.

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EARNINGS PER SHARE (DETAILS) (USD $) In Millions, unless otherwise specified	3 Months Ended											12 Months Ended
	Dec. 28, 2012		Sep. 28, 2012	Jun. 29, 2012	Mar. 30, 2012	Dec. 30, 2011		Sep. 30, 2011		Jul. 01, 2011	Apr. 01, 2011	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Goodwill [Abstract]
Goodwill impairment						$ 27.7	[1]	$ 798.1	[1]					$ 825.8
Weighted-average shares of common stock outstanding:
Weighted-average shares of common stock outstanding	74.5	[2]	74.5	74.2	74.0	76.3		77.4	[2]	77.2	78.4	74.3	[2]	77.3	[2]	81.0	[2]
Effect of dilutive stock options, restricted stock awards and units and employee stock purchase plan shares												0.2	[3]			0.3	[3]
Weighted-average shares of common stock outstanding - Diluted	74.6		74.6	74.6	74.3	76.4		77.4		77.7	78.8	74.5		77.3		81.3
Anti-dilutive equity awards not included in components of weighted-average shares of common stock outstanding												1.1		1.0		0.9

[1] For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively. During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively. See further discussion in Note 9, “Goodwill and Intangible Assets.”

[2] Weighted-average shares of common stock outstanding is net of treasury stock.

[3] No dilution was applied to our basic weighted-average shares outstanding for the year ended December 30, 2011 due to a goodwill impairment charge that resulted in a net loss for the year.

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ADOPTED AND OTHER RECENTLY ISSUED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

ADOPTED AND OTHER RECENTLY ISSUED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS

NOTE 2. ADOPTED AND OTHER RECENTLY ISSUED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS

An accounting standard update related to goodwill impairment testing was issued. The update provides companies with the option to proceed directly to the first step of the two-step goodwill impairment test or perform a qualitative assessment to first assess whether the fair value of a reporting unit is less than its carrying amount, referred to as “step zero.” If an entity determines it is more likely than not that the fair value of the reporting unit is more than its carrying amount, then performing the two-step impairment test is unnecessary. The standard became effective for us beginning with our first interim period of fiscal year 2012. Theadoption of the standard did not have a material impact on our consolidated financial statements.

An accounting standard related to the presentation of other comprehensive income was issued to increase the prominence of items reported in other comprehensive income. One portion of the standard requires, among other disclosures, the components of net income and the components of other comprehensive income to be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.This portion of the standard was effective for us beginning with our first interim period of fiscal year 2012.However, because we have historically presented the components of net income and the components of other comprehensive income in two separate but consecutive statements,the adoption of this standard did not have a material impact on our consolidated financial statements.

An amendment to the remaining portion of this standard was recently issued. It requires public entities to provide information about amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income and, in some cases, cross-references to related footnote disclosures. This portion of the standard is effective for us beginning our first interim period in fiscal year 2013. We currently do not expect that the adoption of this portion of the standard will have a material impact on our consolidated financial statements.

An accounting standard update regarding fair value measurement was issued to conform the definition of fair value and common requirements for measurement of and disclosure about fair value under U.S. generally accepted accounting principles (“GAAP”)and International Financial Reporting Standards. The standard also clarifies the application of existing fair value measurement requirements and expands the disclosure requirements for fair value measurements that are estimated using significant unobservable Level 3 inputs. The standard update was effective for us beginning with our first interim period of fiscal year 2012.The adoption of this standard did not have a material impact on our consolidated financial statements.

An accounting standard update was issued related to new disclosures on offsetting assets and liabilities of financial and derivative instruments. The amendments require the disclosure of gross asset and liability amounts, amounts offset on the balance sheet and amounts subject to the offsetting requirements, but not offset on the balance sheet. This standard does not amend the existing guidance on when it is appropriate to offset. An amendment to this standard was subsequently issued to clarify the intended scope of the disclosures. It applies to derivatives, repurchase agreements, and securities lending transactions that are either offset in accordance with Topic 815, Derivatives and Hedging or subject to an enforceable master netting arrangement or similar agreement. The amendedstandard update is effective for us beginning with our first interim period in fiscal year 2013. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements.

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SEGMENT AND RELATED INFORMATION (DETAILS) (USD $) In Millions, unless otherwise specified	3 Months Ended																12 Months Ended
	Dec. 28, 2012		Sep. 28, 2012		Jun. 29, 2012		Mar. 30, 2012		Dec. 30, 2011		Sep. 30, 2011		Jul. 01, 2011		Apr. 01, 2011		Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Segment additional assets information [Abstract]
Investments in and advances to unconsolidated joint ventures	$ 278.3								$ 107.7								$ 278.3		$ 107.7
Property and equipment at cost, net	687.5	[1],[2]							269.4	[1],[2]							687.5	[1],[2]	269.4	[1],[2]
Total assets	8,786.5								6,862.6								8,786.5		6,862.6
Segment additional income statement information [Abstract]
Revenues	2,972.7		2,947.6		2,690.7		2,361.5		2,393.2		2,471.7		2,360.3		2,319.8		10,972.5		9,545.0		9,177.1
Equity in income of unconsolidated joint ventures																	107.6		132.2		70.3
URS operating income																	570.7	[3]	473.9	[3]	446.1	[3]
Operating income (loss)	171.4	[4],[5]	203.6	[5]	149.5	[5]	161.4	[5]	114.1	[6]	(620.2)	[4],[6]	150.6	[6]	132.1	[6]	685.9	[7]	(223.4)	[7]	544.4	[7]
Capital expenditures																	153.2		81.7		58.1
Depreciation and amortization																	233.6		142.7		133.5
Asset impairment charge for an unconsolidated joint venture																					25.0
Segment reporting disclosure (Textuals) [Abstract]
Description of reportable segments																	We operate our business through the following four segments: Infrastructure & Environment Division provides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. federal government, state and local government agencies, and private sector clients in the U.S. and internationally. Federal Services Division provides services to various U.S. federal government agencies, primarily the Department of Defense. These services include program management, planning, design and engineering, systems engineering and technical assistance, construction and construction management, operations and maintenance, IT services, and decommissioning and closure. Energy & Construction Division provides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. federal government, state and local government agencies, and private sector clients in the U.S. and internationally.
Asset impairment charge for an unconsolidated joint venture																					25.0
Goodwill impairment									(27.7)	[8]	(798.1)	[8]							(825.8)
Litigation settlement gross													9.5
US Army [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Percentage of revenues from major customers																	16.00%	[9]	18.00%	[9]	21.00%	[9]
Revenues																	1,755.0	[10]	1,692.3	[9]	1,922.3	[9]
DOE [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Percentage of revenues from major customers																	9.00%		13.00%		13.00%
Revenues																	989.7		1,269.0		1,203.5
Federal Market Sector [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Percentage of revenues from major customers																	40.00%		49.00%		49.00%
Infrastructure and Environment [Member]
Segment additional assets information [Abstract]
Investments in and advances to unconsolidated joint ventures	8.1								6.3								8.1		6.3
Property and equipment at cost, net	141.0								140.5								141.0		140.5
Total assets	2,267.5	[11]							2,287.3	[11]							2,267.5	[11]	2,287.3	[11]
Segment additional income statement information [Abstract]
Revenues																	3,792.1	[12]	3,760.9	[12]	3,248.5	[12]
Equity in income of unconsolidated joint ventures																	4.0	[12]	3.9	[12]	2.9	[12]
URS operating income																	218.8	[12],[3]	222.0	[12],[3]	223.8	[12],[3]
Operating income (loss)																	220.9	[12],[4],[7]	222.0	[12],[7]	222.9	[12],[7]
Capital expenditures																	43.2	[12]	51.2	[12]	30.0	[12]
Depreciation and amortization																	56.5	[12]	55.0	[12]	42.2	[12]
Infrastructure and Environment [Member] | US Army [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Revenues																	128.4	[9]	141.7	[9]	167.0	[9]
Infrastructure and Environment [Member] | DOE [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Revenues																	5.6		5.9		7.2
Federal Services [Member]
Segment additional assets information [Abstract]
Investments in and advances to unconsolidated joint ventures	5.7								5.1								5.7		5.1
Property and equipment at cost, net	36.6								46.2								36.6		46.2
Total assets	1,645.8	[11]							1,582.4	[11]							1,645.8	[11]	1,582.4	[11]
Segment additional income statement information [Abstract]
Revenues																	2,721.6	[13]	2,695.4	[13]	2,582.8	[13]
Equity in income of unconsolidated joint ventures																	6.4	[13]	6.2	[13]	5.9	[13]
URS operating income																	249.3	[13],[3]	196.8	[13],[3]	165.6	[13],[3]
Operating income (loss)																	249.3	[13],[4],[7]	(151.5)	[13],[7]	165.6	[13],[7]
Capital expenditures																	5.5	[13]	4.8	[13]	5.6	[13]
Depreciation and amortization																	36.3	[13]	27.1	[13]	21.4	[13]
Segment reporting disclosure (Textuals) [Abstract]
Goodwill impairment																			(348.3)
Federal Services [Member] | US Army [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Revenues																	1,495.8	[9]	1,351.1	[9]	1,408.7	[9]
Federal Services [Member] | DOE [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Revenues																	27.7		26.8		13.7
Energy and Construction [Member]
Segment additional assets information [Abstract]
Investments in and advances to unconsolidated joint ventures	124.5								96.3								124.5		96.3
Property and equipment at cost, net	60.1								61.8								60.1		61.8
Total assets	2,776.5	[11]							2,611.9	[11]							2,776.5	[11]	2,611.9	[11]
Segment additional income statement information [Abstract]
Revenues																	3,138.1		3,251.1		3,420.6
Equity in income of unconsolidated joint ventures																	93.0	[6]	122.1	[6]	61.5	[6]
URS operating income																	140.0	[3]	134.6	[3]	127.7	[3]
Operating income (loss)																	254.2	[4],[7]	(214.4)	[7]	226.9	[7]
Capital expenditures																	19.0		14.8		15.9
Depreciation and amortization																	47.1		54.3		62.3
Segment reporting disclosure (Textuals) [Abstract]
Goodwill impairment																			(477.5)
Energy and Construction [Member] | US Army [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Revenues																	130.8	[10]	199.5	[10]	346.6	[10]
Energy and Construction [Member] | DOE [Member]
Segment reporting disclosure of entity's reportable segments revenues by major customers [Abstract]
Revenues																	956.4		1,236.3		1,182.6
Oil and Gas [Member]
Segment additional assets information [Abstract]
Investments in and advances to unconsolidated joint ventures	140.0																140.0
Property and equipment at cost, net	422.9																422.9
Total assets	1,904.4	[11]															1,904.4	[11]
Segment additional income statement information [Abstract]
Revenues																	1,475.1	[14]
Equity in income of unconsolidated joint ventures																	4.2	[14]
URS operating income																	62.3	[14],[3]
Operating income (loss)																	61.2	[14],[4],[7]
Capital expenditures																	72.3	[14]
Depreciation and amortization																	87.1	[14]
Corporate [Member]
Segment additional assets information [Abstract]
Property and equipment at cost, net	26.9								20.9								26.9		20.9
Total assets	192.3								381.0								192.3		381.0
Segment additional income statement information [Abstract]
URS operating income																	(99.7)	[15],[3]	(79.5)	[15],[3]	(71.0)	[15],[3]
Operating income (loss)																	(99.7)	[15],[4],[7]	(79.5)	[15],[7]	(71.0)	[15],[7]
Capital expenditures																	13.2	[15]	10.9	[15]	6.6	[15]
Depreciation and amortization																	6.6	[15]	6.3	[15]	7.6	[15]
Inter-segment Eliminations and Other [Member]
Segment additional assets information [Abstract]
Total assets	0																0
Segment additional income statement information [Abstract]
Revenues																	$ (154.4)		$ (162.4)		$ (74.8)

[1] Property and equipment at cost, net is categorized by the location of incorporation of the legal entities. Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

[2] The unamortized computer software costs were $71.1 million and $60.8 million, respectively, as of December 28, 2012 and December 30, 2011. The increases in property and equipment were mainly due to our acquisition of Flint.

[3] We are providing information regarding URS operating income (loss) by segment because management uses this information to assess performance and make decisions about resource allocation.

[4] The operating income (loss) for the three##D<curpermonth> months ended ##D<priorperiod> includes a $798.1 million goodwill impairment charge.

[5] For the first quarter of 2012, we revised our operating income from $163.9 million, as previously reported in our 10-Q, to $161.4 million due to the reclassification of a $2.5 million gain recognized on foreign currency forward contracts from “General and administrative expenses” to “Other income (expenses)” on our Consolidated Statements of Operations. This revision had no impact on net income attributable to URS or EPS.

[6] In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders. As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

[7] The operating income (loss) for the year ended December 30, 2011 included a $825.8 million goodwill impairment charge. See Note 9, “Goodwill and Intangible Assets” for more information.

[8] For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively. During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively. See further discussion in Note 9, “Goodwill and Intangible Assets.”

[9] The U.S. Army includes U.S. Army Corps of Engineers.

[10] Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less

[11] Total assets by segments are net of investments in subsidiaries.

[12] The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

[13] The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

[14] The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

[15] Corporate includes expenses related to corporate functions and acquisition-related expenses.

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OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (TABLES)

12 Months Ended

Dec. 28, 2012

Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) [Abstract]

Other comprehensive income (loss) and accumulated other comprehensive income (loss) [Table Text Block]

(In millions)			Pension and Post-retirement Related Adjustments (1)		Foreign Currency Translation Adjustments		Loss on Derivative Instruments		Unrealized Gain (Loss) on Interest Rate Swaps		Accumulated Other Comprehensive Income (Loss)
Balances at January 1, 2010			$	(45.4)	$	0.4	$	—	$	(4.2)	$	(49.2)
	Pre-tax amount			(5.1)		8.8		—		7.0		10.7
	Tax benefit (expense)			4.4		—		—		(2.8)		1.6
		Total 2010 adjustments, net of tax		(0.7)		8.8		—		4.2		12.3
Balances at December 31, 2010			$	(46.1)	$	9.2	$	—	$	—	$	(36.9)
	Pre-tax amount			(73.4)		(11.2)		—		—		(84.6)
	Tax benefit (2)			10.7		—		—		—		10.7
		Total 2011 adjustments, net of tax		(62.7)		(11.2)		—		—		(73.9)
Balances at December 30, 2011			$	(108.8)	$	(2.0)	$	—	$	—	$	(110.8)
	Pre-tax amount			(39.9)		24.8		(1.0)		—		(16.1)
	Tax benefit			13.3		—		0.4		—		13.7
		Total 2012 adjustments, net of tax		(26.6)		24.8		(0.6)		—		(2.4)
Balances at December 28, 2012			$	(135.4)	$	22.8	$	(0.6)	$	—	$	(113.2)

• For fiscal year 2012, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $45.6 million of net loss arising during the year, $7.4 million of amortization of prior service credit and net loss, and $1.7 million of before-tax effect of changes in foreign currency exchange rates. For fiscal year 2011,pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $80.9 million of net loss arising during the year, $4.1 million of amortization of prior service credit and net loss, and $1.9 million of before-tax effect of changes in foreign currency exchange rates. For fiscal year 2010,pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $5.3 million of net loss arising during the year, $0.4 million of amortization of prior service credit and net loss, and $0.1 million of before-tax effect of changes in foreign currency exchange rates.
• The tax benefit has been reduced by a valuation allowance of $11.6 million in 2011.

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EARNINGS PER SHARE (TABLES)

12 Months Ended

Dec. 28, 2012

Earnings per share reconciliation [Abstract]

Earnings per share [Table Text Block]

	Year Ended
	December 28,	December 30,	December 31,
(In millions)	2012	2011	2010
Weighted-average common stock shares outstanding (1)	74.3	77.3	81.0
Effect of dilutive stock options, restricted stock awards and units and employee stock purchase plan shares (2)	0.2	—	0.3
Weighted-average common stock outstanding – Diluted	74.5	77.3	81.3

• Weighted-average shares of common stock outstanding is net of treasury stock.

• No dilution was applied to our basic weighted-average shares outstanding for the year ended December 30, 2011 due to a goodwill impairment charge that resulted in a net loss for the year.

Earnings per share, anti-dilutive awards [Table Text Block]

	December 28,	December 30,	December 31,
(In millions)	2012	2011	2010
Anti-dilutive equity awards not included above	1.1	1.0	0.9

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BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES (POLICIES)

12 Months Ended

Dec. 28, 2012

Accounting Policies [Abstract]

Business Description

Overview

The terms “we,” “us,” and “our” used in these financial statements refer to URS Corporation and its consolidated subsidiaries unless otherwise indicated. We are a leading international provider of engineering, construction and technical services. We offer a broad range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients around the world. We also are a United States (“U.S.”) federal government contractor in the areas of systems engineering and technical assistance, operations and maintenance, and information technology (“IT”) services. Headquartered in San Francisco, we have more than54,000 employees in a global network of offices and contract-specific job sites in more than 50 countries as of January 25, 2013. We operate through four reporting segments: the Infrastructure & Environment Division, the Federal Services Division, the Energy & Construction Divisionand the Oil & Gas Division.

Fiscal Year

Our fiscal year is the 52/53-week period ending on the Friday closest to December 31.

Principles Of Consolidation And Basis Of Presentation

Principles of Consolidation and Basis of Presentation

Our consolidated financial statements include the financial position, results of operations and cash flows of URS Corporation and our majority-owned subsidiaries and joint ventures that are required to be consolidated.

We completed the acquisitions of Flint Energy Services Ltd. (“Flint”),Apptis Holdings, Inc. (“Apptis”), and Scott Wilson Group plc. (“Scott Wilson”) onMay 14, 2012,June 1, 2011, and September 10, 2010, respectively.The operations of Flint became our Oil & Gas Division. The operating results of Flint,Apptis, and Scott Wilson from their acquisition dates through December 28, 2012were included in our consolidated financial statements under the Oil & Gas,Federal Services, and Infrastructure & EnvironmentDivisions, respectively.

Investments in unconsolidated joint ventures are accounted for using the equity method and are included as investments in and advances to unconsolidated joint ventures on our Consolidated Balance Sheets. All significant intercompany transactions and accounts have been eliminated in consolidation.

Use Of Estimates

Use of Estimates

The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the balance sheet dates, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, we review our estimates based on information that is currently available. Changes in facts and circumstances may cause us to revise our estimates.

Consolidation Of Variable Interest Entities

Consolidation of Variable Interest Entities

We participate in joint ventures, which include partnerships and partially-owned limited liability companies, to bid, negotiate and complete specific projects. We are required to consolidate these joint ventures if we hold the majority voting interest or if we meet the criteria under the variable interest model as described below.

A variable interest entity (“VIE”) is an entity with one or more of the following characteristics (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns, or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity's activities are on behalf of the investor.

Our VIEs may be funded through contributions, loans and/or advances from the joint venture partners or by advances and/or letters of credit provided by our clients. Our VIEs may be directly governed, managed, operated and administered by the joint venture partners. Others have no employees and, although these entities own and hold the contracts with the clients, the services required by the contracts are typically performed by the joint venture partners or by other subcontractors.

If we are determined to be the primary beneficiary of the VIE, we are required to consolidate it. We are considered to be the primary beneficiary if we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we take into consideration the following:

• Identifying the significant activities and the parties that have the power to direct them;
• Reviewing the governing board composition and participation ratio;
• Determining the equity, profit and loss ratio;
• Determining the management-sharing ratio;
• Reviewing employment terms, including which joint venture partner provides the project manager; and
• Reviewing the funding and operating agreements.

  Examples of significant activities include the following:

• Engineering services;
• Procurement services;
• Construction;
• Construction management; and
• Operations and maintenance services.

Based on the above, if we determine that the power to direct the significant activities is shared by two or more joint venture parties, then there is no primary beneficiary and no party consolidates the VIE. In making the shared-power determination, we analyze the key contractual terms, governance, related party and de facto agency as they are defined in the accounting standard, and other arrangements to determine if the shared power exists.

As required by the accounting standard, we perform a quarterly re-assessment to determine whether we are the primary beneficiary. This evaluation may result in consolidation of a previously unconsolidated joint venture or in deconsolidation of a previously consolidated joint venture. See Note 6, “Joint Ventures,” for further information on our VIEs.

Revenue Recognition

Revenue Recognition

We recognize revenues from engineering, construction and construction-related contracts using the percentage-of-completion method as project progress occurs. Service-related contracts, including operations and maintenance services and a variety of technical assistance services, are accounted for using the proportionate performance method as project progress occurs.

Percentage of Completion.Under the percentage-of-completion method, revenue is recognized as contract performance progresses. We estimate the progress towards completion to determine the amount of revenue and profit to recognize. We generally utilize a cost-to-cost approach in applying the percentage-of-completion method, where revenue is earned in proportion to total costs incurred, divided by total costs expected to be incurred. Costs are generally determined from actual hours of labor effort expended at per-hour labor rates calculated using a labor dollar multiplier that includes direct labor costs and allocable overhead costs. Direct non-labor costs are charged as incurred plus any mark-up permitted under the contract.

Under the percentage-of-completion method, recognition of profit is dependent upon the accuracy of a variety of estimates, including engineering progress, materials quantities, and achievement of milestones, incentives, penalty provisions, labor productivity, cost estimates and others. Such estimates are based on various professional judgments we make with respect to those factors and are subject to change as the project proceeds and new information becomes available.

Proportional Performance.Our service contracts, primarily performed by our Federal Services Division, are accounted for using the proportional performance method, under which revenue is recognized in proportion to the number of service activities performed, in proportion to the direct costs of performing the service activities, or evenly across the period of performance depending upon the nature of the services provided.

Revenues from all contracts may vary based on the actual number of labor hours worked and other actual contract costs incurred. If actual labor hours and other contract costs exceed the original estimate agreed to by our client, we generally obtain a change order, contract modification or successfully prevail in a claim in order to receive and recognize additional revenues relating to the additional costs (see “Change Orders and Claims” below).

If estimated total costs on any contract indicate a loss, we charge the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, incentive awards, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss or change in estimates are known and the loss can be reasonably estimated. Such revisions could occur at any time and the effects may be material.

We have a history of making reasonably dependable estimates of the extent of progress towards completion, contract revenue and contract completion costs on our long-term engineering and construction contracts. However, due to uncertainties inherent in the estimation process, it is possible that actual completion costs may vary from estimates.

Change Orders and Claims.Change orders and/or claims occur when changes are experienced once contract performance is underway, and may arise under any of the contract types described below.

Change orders are modifications of an original contract that effectively change the existing provisions of the contract without adding new scope or terms. Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Either we or our clients may initiate change orders. Client agreement as to the terms of change orders is, in many cases, reached prior to work commencing; however, sometimes circumstances require that work progress without obtaining client agreement. Costs related to change orders are recognized as incurred. Revenues attributable to change orders that are unapproved as to price or scope are recognized to the extent that costs have been incurred if the amounts can be reliably estimated and their realization is probable. Revenues in excess of the costs attributable to change orders that are unapproved as to price or scope are recognized only when realization is assured beyond a reasonable doubt. Change orders that are unapproved as to both price and scope are evaluated as claims.

Claims are amounts in excess of agreed contract prices that we seek to collect from our clients or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs. Claims are included in total estimated contract revenues when the contract or other evidence provides a legal basis for the claim, when the additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of the deficiencies in the contract performance, when the costs associated with the claim are identifiable, and when the evidence supporting the claim is objective and verifiable. Revenue on claims is recognized only to the extent that contract costs related to the claims have been incurred and when it is probable that the claim will result in a bona fide addition to contract value which can be reliably estimated. No profit is recognized on claims until final settlement occurs. As a result, costs may be recognized in one period while revenues may be recognized when client agreement is obtained or claims resolution occurs, which can be in subsequent periods.

“At-risk” and “Agency” Contracts.The amount of revenues we recognize also depends on whether the contract or project represents an at-risk or an agency relationship between the client and us. Determination of the relationship is based on characteristics of the contract or the relationship with the client. For at-risk relationships where we act as the principal to the transaction, the revenue and the costs of materials, services, payroll, benefits, and other costs are recognized at gross amounts. For agency relationships, where we act as an agent for our client, only the fee revenue is recognized, meaning that direct project costs and the related reimbursement from the client are netted. Revenues from agency contracts and collaborative arrangements were not a material part of revenues for any period presented.

In classifying contracts or projects as either at-risk or agency, we consider the following primary characteristics to be indicative of at-risk relationships: (i) we acquire the related goods and services using our procurement resources, (ii) we assume the risk of loss under the contract and (iii) we are responsible for insurance coverage, employee-related liabilities and the performance of subcontractors.

We consider the following primary characteristics to be indicative of agency relationships: (i) our client owns the work facilities utilized under the contract, (ii) we act as a procurement agent for goods and services acquired with client funds, (iii) our client is invoiced for our fees, (iv) our client is exposed to the risk of loss and maintains insurance coverage, and (v) our client is responsible for employee-related benefit plan liabilities and any remaining liabilities at the end of the contract.

Revenue Recognition, Contract Types

Contract Types

Our contract types include cost-plus, target-price, fixed-price, and time-and-materials contracts. Revenue recognition is determined based on the nature of the service provided, irrespective of the contract type, with engineering, construction and construction-related contracts accounted for under the percentage-of-completion method and service-related contracts accounted for under the proportional performance method.

Cost-Plus Contracts. We enter into four major types of cost-plus contracts. Revenue for the majority of our cost-plus contracts is recognized using the percentage-of-completion method:

Cost-Plus Fixed Fee. Under cost-plus fixed fee contracts, we charge our clients for our costs, including both direct and indirect costs, plus a fixed negotiated fee.

Cost-Plus Fixed Rate. Under our cost-plus fixed rate contracts, we charge clients for our direct costs plus negotiated rates based on our indirect costs.

Cost-Plus Award Fee. Some cost-plus contracts provide for award fees or penalties based on performance criteria in lieu of a fixed fee or fixed rate. Other contracts include a base fee component plus a performance-based award fee. In addition, we may share award fees with subcontractors and/or our employees. We accrue fee sharing as related award fee revenue is earned. We take into consideration the award fee or penalty on contracts when estimating revenues and profit rates, and we record revenues related to the award fees when there is sufficient information to assess anticipated contract performance. On contracts that represent higher than normal risk or technical difficulty, we defer all award fees until an award fee letter is received. Once an award fee letter is received, the estimated or accrued fees are adjusted to the actual award amount.

Cost-Plus Incentive Fee. Some of our cost-plus contracts provide for incentive fees based on performance against contractual milestones. The amount of the incentive fees varies, depending on whether we achieve above-, at- or below-target results. We recognize incentive fees revenues as milestones are achieved, assuming that we will achieve at-target results, unless our estimates indicate our cost at completion to be significantly above or below target.

Target-Price Contracts. Under our target-price contracts, project costs are reimbursable. Our fee is established against a target budget that is subject to changes in project circumstances and scope. Should the project costs exceed the target budget within the agreed-upon scope, we generally degrade a portion of our fee or profit to mitigate the excess cost; however, the customer reimburses us for the costs that we incur if costs continue to escalate beyond our expected fee. If the project costs are less than the target budget, we generally recover a portion of the project cost savings as additional fee or profit. We recognize revenues on target-price contracts using the percentage-of-completion method.

Fixed-Price Contracts. We enter into two major types of fixed-price contracts:

Firm Fixed-Price (“FFP”). Under FFP contracts, our clients pay us an agreed fixed-amount negotiated in advance for a specified scope of work. We generally recognize revenues on FFP contracts using the percentage-of-completion method. If the nature or circumstances of the contract prevent us from preparing a reliable estimate at completion, we will delay profit recognition until adequate information about the contract's progress becomes available. Prior to completion, our recognized profit margins on any FFP contract depend on the accuracy of our estimates and will increase to the extent that our current estimates of aggregate actual costs are below amounts previously estimated. Conversely, if our current estimated costs exceed prior estimates, our profit margins will decrease and we may realize a loss on a project.

Fixed-Price Per Unit (“FPPU”). Under our FPPU contracts, clients pay us a set fee for each service or production transaction that we complete. We recognize revenues under FPPU contracts as we complete the related service or production transactions for our clients generally using the proportional performance method. Some of our FPPU contracts are subject to maximum contract values.

Time-and-Materials Contracts. Under our time-and-materials contracts, we negotiate hourly billing rates and charge our clients based on the actual time that we spend on a project. In addition, clients reimburse us for our actual out-of-pocket costs of materials and other direct incidental expenditures that we incur in connection with our performance under the contract. The majority of our time-and-material contracts are subject to maximum contract values and, accordingly, revenues under these contracts are generally recognized under the percentage-of-completion method. However, time-and-materials contracts that are service-related contracts are accounted for utilizing the proportional performance method. Revenues on contracts that are not subject to maximum contract values are recognized based on the actual number of hours we spend on the projects plus any actual out-of-pocket costs of materials and other direct incidental expenditures that we incur on the projects. Our time-and-materials contracts also generally include annual billing rate adjustment provisions.

Revenue Recognition, Segmenting And Combining Contracts

Segmenting and Combining Contracts

Occasionally a contract may include several elements or phases, each of which was negotiated separately with our client and agreed to be performed without regard to the performance of others. We follow the criteria set forth in the accounting guidance when combining and segmenting contracts. When combining contracts, revenues and profits are earned and reported uniformly over the performance of the combined contracts. When segmenting contracts, we assign revenues and costs to the different elements or phases to achieve different rates of profitability based on the relative value of each element or phase to the estimated contract revenues. Values assigned to the segments are based on our normal historical prices and terms of such services to other clients. Also, a group of contracts may be so closely related that they are, in effect, part of a single project with an overall profit margin.

Accounts Receivable And Costs And Accrued Earnings In Excess Of Billings On Contracts

Accounts Receivable and Costs and Accrued Earnings in Excess of Billings on Contracts

Accounts receivable in the accompanying Consolidated Balance Sheets are primarily comprised of amounts billed to clients for services already provided, but which have not yet been collected. Occasionally, under the terms of specific contracts, we are permitted to submit invoices in advance of providing our services to our clients and, to the extent they have not been collected, these amounts are also included in accounts receivable.

Costs and accrued earnings in excess of billings on contracts (also referred to as “Unbilled Accounts Receivable”) in the accompanying Consolidated Balance Sheets represent unbilled amounts earned and reimbursable under contracts. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of milestones or completion of the project. Generally, such unbilled amounts will be billed and collected over the next twelve months.

Accounts receivable and costs and accrued earnings in excess of billings on contracts include certain amounts recognized related to unapproved change orders (amounts representing the value of proposed contract modifications, but which are unapproved as to either price or scope) and claims, (change orders that are unapproved as to both price and scope) that have not been collected and, in the case of balances included in costs and accrued earnings in excess of billings on contracts, may not be billable until an agreement or, in the case of claims, a settlement is reached. Most of those balances are not material and are typically resolved in the ordinary course of business.

Billings In Excess Of Costs And Accrued Earnings On Contracts

Billings in Excess of Costs and Accrued Earnings on Contracts

Billings in excess of costs and accrued earnings on contracts in the accompanying Consolidated Balance Sheets is comprised of cash collected from clients and billings to clients on contracts in advance of work performed, advance payments negotiated as a contract condition, estimated losses on uncompleted contracts, normal profit liabilities, project-related legal liabilities;and other project-related reserves. The majority of the unearned project-related costs will be earned over the next twelve months.

We record provisions for estimated losses on uncompleted contracts in the period in which such losses become probable. The cumulative effects of revisions to contract revenues and estimated completion costs are recorded in the accounting period in which the amounts become probableand can be reasonably estimated. These revisions can include such items as the effects of change orders and claims, warranty claims, liquidated damages or other contractual penalties, adjustments for audit findings on U.S. or other government contracts and contract closeout settlements.

Receivable Allowances

Receivable Allowances We reduce our accounts receivable and costs and accrued earnings in excess of billings on contracts by estimating an allowance for amounts that may become uncollectible or unrealizable in the future. We determine our estimated allowance for uncollectible amounts based on management’s judgments regarding our operating performance related to the adequacy of the services performed or products delivered, the status of change orders and claims, our experience settling change orders and claims and the financial condition of our clients, which may be dependent on the type of client and current economic conditions to which the client may be subject.

Classification Of Current Assets And Liabilities

Classification of Current Assets and Liabilities

Our accounts receivable include retentions associated with long-term contracts, which are generally not billable until near or at the completion of the projects or milestones and/or delivery of services. For contracts with terms that exceed one year, retentions are generally billed beyond a year from the service date. Our Unbilled Accounts Receivable include amounts related to milestone payment clauses, which may provide for payments to be received beyond a year from the date the Unbilled Accounts Receivable are recognized. Unbilled Accounts Receivable related to performance-based incentives that we do not expect to bill within twelve months of the balance sheet date are included in “Other long-term assets.” Based on our historical experience, we generally consider the collection risk related to these amounts to be low. When events or conditions indicate that the amounts outstanding may become uncollectible, an allowance is estimated and recorded.

Subcontractor payables, subcontractor retentions, and billings in excess of costs and accrued earnings on contracts each contain amounts that, depending on contract performance, resolution of U.S. government contract audits, negotiations, change orders, claims or changes in facts and circumstances, may not require payment within one year.

Accounts receivable – retentions represent amounts billed to clients for services performed that, by the underlying contract terms, will not be paid until the projects meet contractual milestones, or are at or near completion. Correspondingly, subcontractors payable – retentions represent amounts billed to us by subcontractors for services performed that, by their underlying contract terms, do not require payment by us until the projects are at or near completion.

Accounts payable and subcontractors payable include our estimate of incurred but unbilled subcontractor costs.

Concentrations Of Credit Risk

Concentrations of Credit Risk

Our accounts receivable and costs and accrued earnings in excess of billings on contracts are potentially subject to concentrations of credit risk. Our credit risk on accounts receivable is limited due to the large number of contracts for clients that comprise our customer base and their dispersion across different business and geographic areas. We estimate and maintain an allowance for potential uncollectible accounts, and such estimates have historically been within management's expectations. See Note 4, “Accounts Receivable and Costs and Accrued Earnings in Excess of Billings on Contracts” for more details. Our cash and cash equivalents are maintained in accounts held by major banks and financial institutions located primarily in North America, Europe and Asia Pacific.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid investments with maturities of 90 days or less at the date of purchase and include interest-bearing bank deposits and money market funds. At December 28, 2012 and December 30, 2011, restricted cash balances were $17.1million and $21.0 million, respectively. These amounts were included in “Other current assets” on our Consolidated Balance Sheets. For cash held by our consolidated joint ventures, see Note 6, “Joint Ventures.”

Derivative Instruments

Derivative Instruments

We are exposed to the risk of changes in interest rates on our long-term debt. Sometimes, we manage this risk through the use of derivative instruments. All derivative financial instruments are recorded on the balance sheet at fair value. At dates entered into, the derivatives hedge the variability in cash flows received or paid in connection with a recorded asset or liability.

Changes in the fair value of cash flow hedges are recorded in other comprehensive income until earnings are affected by the variability of cash flows of the hedged transactions. We would discontinue hedge accounting prospectively when the derivatives are no longer effective in offsetting changes in cash flows of the hedged items, the derivatives are sold or terminated or it is no longer probable that the forecasted transactions will occur. Cash flows resulting from derivatives that are accounted for as hedges may be classified in the same category as the cash flows from the items being hedged.

We use derivative instruments only for risk management purposes and not for speculation or trading. The amount, maturity, and other specifics of the hedge, if any, are determined by the specific derivative instrument. If a derivative contract is entered into, we either determine that it is an economic hedge or we designate the derivative as a cash flow or fair value hedge. We formally document all relationships between hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking various hedged transactions. For those derivatives designated as cash flow or fair value hedges, we formally assess, both at the derivatives' inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the hedged items. The ineffective portion of hedging transactions is recognized in current income.

Fair Value Measurement

Fair Value Measurement

We determine the fair values of our financial instruments, including debt instruments and pension and post-retirement plan assets based on inputs or assumptions that market participants would use in pricing an asset or a liability. We categorize our instruments using a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair values based on their short-term nature.

Our long-term debt includes bothfloating-rateand fixed rate instruments. See Note 11, “Fair Value of Debt Instruments and Derivative Instruments,” for additional disclosure.

Our fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.

Inventory

Inventory

Inventory is stated at cost (first-in, first-out or average cost), but not in excess of net realizable value. Net realizable value represents the estimated selling price for inventory less the estimated costs of completion and the estimated costs associated with the sale. The cost of inventory includes expenditures incurred in acquiring the inventory, production or conversion costs, and other costs incurred in bringing the inventory items to their existing location and condition. For fabricated inventory and work in progress, cost includes overhead allocated based on normal operating capacity. A write down for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, future sales expectations and salvage value.See Note 5, “Inventory,” for additional disclosure.

Property And Equipment

Property and Equipment

Property and equipment are stated at cost. In the year assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts and any gain or loss on disposal is reflected in the Consolidated Statement of Operations. Depreciation is provided on the straight-line and the declining methods using estimated useful lives less residual value. Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less. We capitalize our repairs- and maintenance-related costs that extend the estimated useful lives of property and equipment; otherwise, repairs- and maintenance-related costs are expensed. Whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable, we compare the carrying value to the fair value, which is measured using the prices in active markets for similar assets, and recognize the difference as an impairment loss.See Note 7, “Property and Equipment,” for additional disclosure.

Internal-Use Computer Software

Internal-Use Computer Software

We expense or capitalize costs associated with the development of internal-use software as follows:

Preliminary Project Stage: Both internal and external costs incurred during this stage are expensed as incurred.

Application Development Stage: Both internal and external costs incurred to purchase and develop computer software are capitalized after the preliminary project stage is completed and management authorizes the computer software project. However, training costs and the process of data conversion from the old system to the new system, which includes purging or cleansing of existing data, reconciliation or balancing of old data to the converted data in the new system, are expensed as incurred.

Post-Implementation/Operation Stage: All training costs and maintenance costs incurred during this stage are expensed as incurred.

Costs of upgrades and enhancements are capitalized if the expenditures will result in adding functionality to the software. Capitalized software costs are depreciated using the straight-line method over the estimated useful life of the related software, which may be up to ten years.

Goodwill And Intangible Assets

Goodwill and Intangible Assets

We amortize our intangible assets based on the period over whichthe contractual or economic benefits of the intangible assets are expected to be realized. We assess our intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable. Examples of such events are i) significant adverse changes in its market value, useful life, physical condition, or in the business climate that could affect its value; ii) a current-period operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the intangible asset; or iii) a current expectation that, more likely than not, the intangible asset will be sold or otherwise disposed of before the end of its previously estimated useful life.

Goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. We assess our goodwill for impairment at least annually as of the end of the first month following our September reporting period or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

We believe the methodology that we use to review impairment of goodwill, which includes a significant amount of judgment and estimates, provides us with a reasonable basis to determine whether impairment has occurred. However, many of the factors employed in determining whether our goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes could result in future impairments.

Goodwill impairment reviews involve a two-step process. The first step is a comparison of each reporting unit's fair value to its carrying value. We estimate fair value using discounted cash flow analyses, referred to as the income approach. The income approach uses a reporting unit's projection of estimated cash flows and discounts those back to the present using a weighted-average cost of capital that reflects current market conditions. To arrive at our cash flow projections, we consider estimates of economic and market activity over a projection period of ten years, management's expectations of growth rates in revenues, costs, estimates of future expected changes in operating margins and capital expenditures. Other significant estimates and assumptions include long-term growth rates and changes in future working capital requirements.

We also consider indications obtained from the market approach. We applied market multiples derived from stock market prices of companies that are engaged in the same or similar lines of business as our reporting units and that are actively traded on a free and open market, or applied market multiples derived from transactions of significant interests in companies engaged in the same or similar lines of business as our reporting units, to the corresponding measure of financial performance for our reporting units produces estimates of value at the noncontrolling marketable level.

In reaching our final estimate of value, we considered the fair values derived from using both the income and market approaches. We gave primary weight to the income approach because it was deemed to be the most applicable.

When performing our impairment analysis, we also reconcile the sum of the fair values of our reporting units with our market capitalization to determine if the sum reasonably reconciles with the external market indicators. If our reconciliation indicates a significant difference between our external market capitalization and the sum of thefair values of our reporting units, we review and adjustthe assumptions employed in our analysis, and examine if the implied control premium is reasonable in light of current market conditions.

If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment. The amount of impairment is determined by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the goodwill calculated in the same manner as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill is less than the recorded goodwill, we would record an impairment charge for the difference.

There are several instances that may cause us to further test our goodwill for impairment between the annual testing periods including: (i) continued deterioration of market and economic conditions that may adversely impact our ability to meet our projected results; (ii) declines in our stock price caused by continued volatility in the financial markets that may result in increases in our weighted-average cost of capital or other inputs to our goodwill assessment; and (iii) the occurrence of events that may reduce the fair value of a reporting unit below its carrying amount, such as the sale of a significant portion of one or more of our reporting units.

If our goodwill were impaired, we would be required to record a non-cash charge that could have a material adverse effect on our consolidated financial statements.

See Note 9, “Goodwill and Intangible Assets,” for more disclosure about our test for goodwill impairment.

Self-Insurance Reserves

Self-insurance Reserves

Self-insurance reserves represent reserves established as a result of insurance programs under which we self-insure portions of our business risks. We carry substantial premium-paid, traditional risk transfer insurance for our various business risks; however, we self-insure and establish reserves for the retentions on workers' compensation insurance, general liability, automobile liability, and professional errors and omissions liability.

Foreign Currency Translation

Foreign Currency Translation

We determine the functional currency of our international operating entities based upon the currency of the primary environment in which they operate. Where the functional currency is not the U.S. dollar, translation of assets and liabilities to U.S. dollars is based on exchange rates at the balance sheet date. Translation of revenue and expenses to U.S. dollars is based on the average rate during the period. Foreign currency differences arising from transactions denominated in currencies other than the functional currency, such as selling services or purchasing materials, results in transaction gains or losses, and are generally included in results of operations.

Foreign currency differences arising from the translation of intercompany loans from a foreign currency into the functional currency of an entity, which are of a long-term investment nature (that is, settlement is not planned or anticipated in the foreseeable future) are recorded in “Accumulated other comprehensive income (loss)” on our Consolidated Balance Sheets. Foreign currency differences arising from the translation of other intercompany loans are recorded in “Other income (expense)” on our Consolidated Statements of Operations.

Income Taxes

Income Taxes

We use the asset and liability approach for financial accounting and reporting for income taxes. We file income, franchise, gross receipts and similar tax returns in many jurisdictions. Our tax returns are subject to audit by the Internal Revenue Service, most states in the U.S., and by various government agencies representing many jurisdictions outside the U.S. We estimate and provide for additional income taxes that may be assessed by the various taxing authorities. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is the amount of tax payable for the period plus or minus the change in deferred tax assets and liabilities during the period.See Note 13, “Income Taxes,” for additional disclosure.

Valuation allowances based on our judgments and estimates are established when necessary to reduce deferred tax assets to the amount expected to be realized and based on expected future operating results and available tax alternatives. Our estimates are based on facts and circumstances in existence as well as interpretations of existing tax regulations and laws applied to the facts and circumstances. Management believes that realization of deferred tax assets in excess of the valuation allowance is more likely than not.

Pension Plans And Post-retirement Benefits

Pension Plans and Post-retirement Benefits

We account for our defined benefit pension plans and post-retirement benefits using actuarial valuations that are based on assumptions, including discount rates, long-term rates of return on plan assets, and rates of change in participant compensation levels. We evaluate the funded status of each of our defined benefit pension plans and post-retirement benefit plans using these assumptions, consider applicable regulatory requirements, tax deductibility, reporting considerations and other relevant factors, and thereby, determine the appropriate funding level for each period. The discount rate used to calculate the present value of the pension and post-retirement benefit obligations is assessed at least annually. The discount rate represents the rate inherent in the price at which the plans' obligations are intended to be settled at the measurement date. See Note 14, “Employee Retirement and Post-Retirement Benefit Plans,” for additional disclosure.

Noncontrolling Interests

Noncontrolling interests

Noncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements.

Business Combinations

Business Combinations

We account for business combinations under the purchase accounting method. The cost of an acquired company is assigned to the tangible and intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets and liabilities acquired requires us to make estimates and use valuation techniques when market value is not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. The transaction costs associated with business combinations are expensed as they are incurred. See Note 8, “Acquisitions,” for more information.

Reclassifications

Reclassifications

We made reclassifications to the prior year's financial statements to conform them to the current period's presentation.These reclassifications have no effect on our consolidated net assets or net cash flows. In particular, we reclassified from “Costs and accrued earnings in excess of billings on contracts” to “Other long-term assets” those unbilled receivables related to performance-based incentives that we do not expectto bill within twelve months of the balance sheet date.

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FAIR VALUE OF DEBT INSTRUMENTS AND DERIVATIVE INSTRUMENTS (DETAILS)	3 Months Ended	12 Months Ended
	Dec. 28, 2012 USD ($)	Dec. 28, 2012 USD ($)	Dec. 28, 2012 CAD	Dec. 28, 2012 Senior Debt Obligations [Member] USD ($)	Dec. 28, 2012 Credit Facility Term Loan [Member] USD ($)	Dec. 30, 2011 Credit Facility Term Loan [Member] USD ($)
Debt Instrument [Line Items]
Outstanding debt				$ 1,200,000,000	$ 670,000,000	$ 700,000,000
Fair values of our term loans					667,300,000	697,400,000
Fair value of our Senior Notes				1,200,000,000
Foreign currency exchange contracts [Abstract]
Notional amount of foreign currency forward contract	1,250,000,000	1,250,000,000	1,250,000,000
Foreign currency exchange contracts [Line Items]
Loss on settlement of foreign currency forward contract		300,000
Foreign currency gains (losses) on intercompany loans	$ 3,600,000	$ 800,000

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RECEIVABLE AND DEFERRED INCOME TAX VALUATION ALLOWANCES (TABLES)

12 Months Ended

Dec. 28, 2012

Summary of receivable and deferred income tax valuation allowances [Abstract]

Summary of receivable and deferred income tax valuation allowances [Table Text Block]

(In millions)	Balance at the Beginning of the Period		Additions (Charged to Bad Debt Expense)		Additions (Charged to Other Accounts) (1)		Deductions (2)		Other (3)		Balance at the End of the Period
Year ended December 28, 2012
Receivable allowances	$	43.1	$	6.6	$	27.4	$	(7.4)	$	—	$	69.7
Deferred income tax valuation allowance	$	124.0	$	—	$	3.1	$	(1.1)	$	11.6	$	137.6
Year ended December 30, 2011
Receivable allowances	$	42.8	$	2.8	$	16.1	$	(18.6)	$	—	$	43.1
Deferred income tax valuation allowance	$	104.2	$	—	$	23.5	$	(15.3)	$	11.6	$	124.0
Year ended December 31, 2010
Receivable allowances	$	47.7	$	6.7	$	8.9	$	(20.5)	$	—	$	42.8
Deferred income tax valuation allowance	$	87.6	$	—	$	21.4	$	(8.0)	$	3.2	$	104.2

• These additions were primarily charged to revenues or income tax expense.
• Deductions to the deferred income tax valuation allowance were primarily attributed to foreign and state NOL expirations, change in tax rates and the use of federal and state NOLs.
• Other adjustments to the deferred income tax valuation allowance during the year ended December 28, 2012 were attributable to acquired deferred taxes through the Flint acquisition. For the year ended December 30, 2011, other adjustments to the deferred income tax valuation allowancewere charged to other comprehensive income. For the year ended December 31, 2010, other adjustments to the deferred income tax valuation allowance were attributable to acquired deferred taxes on foreign net operating losses through the Scott Wilson acquisition.

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ACCOUNTS RECEIVABLE AND COSTS AND ACCRUED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS (TABLES)

12 Months Ended

Dec. 28, 2012

Accounts receivable and costs and accrued earnings in excess of billings on contracts [Abstract]

Accounts receivable and costs and accrued earnings in excess of billings on contracts [Table Text Block]

			December 28,		December 30,
(In millions)			2012		2011
Accounts receivable:
	U.S. federal government		$	376.2	$	391.2
	Others			1,178.6		723.5
		Total accounts receivable	$	1,554.8	$	1,114.7
Unbilled Accounts Receivable:
	U.S. federal government		$	892.7	$	758.8
	Others			756.5		558.2
		Total		1,649.2		1,317.0
		Less: Amounts included in Other long-term assets		(264.9)		(185.0)
		Unbilled Accounts Receivable	$	1,384.3	$	1,132.0

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INVENTORY (TABLES)

12 Months Ended

Dec. 28, 2012

Inventory [Abstract]

Inventory [Table Text Block]

		December 28,		December 30,
(In millions)		2012		2011
Raw materials		$	14.2	$	2.7
Work in progress			9.8		16.8
Finished goods			24.9		—
Supplies			12.6		—
	Total	$	61.5	$	19.5

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BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES

NOTE 1. BUSINESS, BASIS OF PRESENTATION, AND ACCOUNTING POLICIES

Overview

The terms “we,” “us,” and “our” used in these financial statements refer to URS Corporation and its consolidated subsidiaries unless otherwise indicated. We are a leading international provider of engineering, construction and technical services. We offer a broad range of program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to public agencies and private sector clients around the world. We also are a United States (“U.S.”) federal government contractor in the areas of systems engineering and technical assistance, operations and maintenance, and information technology (“IT”) services. Headquartered in San Francisco, we have more than54,000 employees in a global network of offices and contract-specific job sites in more than 50 countries as of January 25, 2013. We operate through four reporting segments: the Infrastructure & Environment Division, the Federal Services Division, the Energy & Construction Divisionand the Oil & Gas Division.

Our fiscal year is the 52/53-week period ending on the Friday closest to December 31.

Principles of Consolidation and Basis of Presentation

Our consolidated financial statements include the financial position, results of operations and cash flows of URS Corporation and our majority-owned subsidiaries and joint ventures that are required to be consolidated.

We completed the acquisitions of Flint Energy Services Ltd. (“Flint”),Apptis Holdings, Inc. (“Apptis”), and Scott Wilson Group plc. (“Scott Wilson”) onMay 14, 2012,June 1, 2011, and September 10, 2010, respectively.The operations of Flint became our Oil & Gas Division. The operating results of Flint,Apptis, and Scott Wilson from their acquisition dates through December 28, 2012were included in our consolidated financial statements under the Oil & Gas,Federal Services, and Infrastructure & EnvironmentDivisions, respectively.

Investments in unconsolidated joint ventures are accounted for using the equity method and are included as investments in and advances to unconsolidated joint ventures on our Consolidated Balance Sheets. All significant intercompany transactions and accounts have been eliminated in consolidation.

Use of Estimates

The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the balance sheet dates, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, we review our estimates based on information that is currently available. Changes in facts and circumstances may cause us to revise our estimates.

Consolidation of Variable Interest Entities

We participate in joint ventures, which include partnerships and partially-owned limited liability companies, to bid, negotiate and complete specific projects. We are required to consolidate these joint ventures if we hold the majority voting interest or if we meet the criteria under the variable interest model as described below.

A variable interest entity (“VIE”) is an entity with one or more of the following characteristics (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional financial support; (b) as a group, the holders of the equity investment at risk lack the ability to make certain decisions, the obligation to absorb expected losses or the right to receive expected residual returns, or (c) an equity investor has voting rights that are disproportionate to its economic interest and substantially all of the entity's activities are on behalf of the investor.

Our VIEs may be funded through contributions, loans and/or advances from the joint venture partners or by advances and/or letters of credit provided by our clients. Our VIEs may be directly governed, managed, operated and administered by the joint venture partners. Others have no employees and, although these entities own and hold the contracts with the clients, the services required by the contracts are typically performed by the joint venture partners or by other subcontractors.

If we are determined to be the primary beneficiary of the VIE, we are required to consolidate it. We are considered to be the primary beneficiary if we have the power to direct the activities that most significantly impact the VIE's economic performance and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we take into consideration the following:

• Identifying the significant activities and the parties that have the power to direct them;
• Reviewing the governing board composition and participation ratio;
• Determining the equity, profit and loss ratio;
• Determining the management-sharing ratio;
• Reviewing employment terms, including which joint venture partner provides the project manager; and
• Reviewing the funding and operating agreements.

  Examples of significant activities include the following:

• Engineering services;
• Procurement services;
• Construction;
• Construction management; and
• Operations and maintenance services.

Based on the above, if we determine that the power to direct the significant activities is shared by two or more joint venture parties, then there is no primary beneficiary and no party consolidates the VIE. In making the shared-power determination, we analyze the key contractual terms, governance, related party and de facto agency as they are defined in the accounting standard, and other arrangements to determine if the shared power exists.

As required by the accounting standard, we perform a quarterly re-assessment to determine whether we are the primary beneficiary. This evaluation may result in consolidation of a previously unconsolidated joint venture or in deconsolidation of a previously consolidated joint venture. See Note 6, “Joint Ventures,” for further information on our VIEs.

Revenue Recognition

We recognize revenues from engineering, construction and construction-related contracts using the percentage-of-completion method as project progress occurs. Service-related contracts, including operations and maintenance services and a variety of technical assistance services, are accounted for using the proportionate performance method as project progress occurs.

Percentage of Completion.Under the percentage-of-completion method, revenue is recognized as contract performance progresses. We estimate the progress towards completion to determine the amount of revenue and profit to recognize. We generally utilize a cost-to-cost approach in applying the percentage-of-completion method, where revenue is earned in proportion to total costs incurred, divided by total costs expected to be incurred. Costs are generally determined from actual hours of labor effort expended at per-hour labor rates calculated using a labor dollar multiplier that includes direct labor costs and allocable overhead costs. Direct non-labor costs are charged as incurred plus any mark-up permitted under the contract.

Under the percentage-of-completion method, recognition of profit is dependent upon the accuracy of a variety of estimates, including engineering progress, materials quantities, and achievement of milestones, incentives, penalty provisions, labor productivity, cost estimates and others. Such estimates are based on various professional judgments we make with respect to those factors and are subject to change as the project proceeds and new information becomes available.

Proportional Performance.Our service contracts, primarily performed by our Federal Services Division, are accounted for using the proportional performance method, under which revenue is recognized in proportion to the number of service activities performed, in proportion to the direct costs of performing the service activities, or evenly across the period of performance depending upon the nature of the services provided.

Revenues from all contracts may vary based on the actual number of labor hours worked and other actual contract costs incurred. If actual labor hours and other contract costs exceed the original estimate agreed to by our client, we generally obtain a change order, contract modification or successfully prevail in a claim in order to receive and recognize additional revenues relating to the additional costs (see “Change Orders and Claims” below).

If estimated total costs on any contract indicate a loss, we charge the entire estimated loss to operations in the period the loss becomes known. The cumulative effect of revisions to revenue, estimated costs to complete contracts, including penalties, incentive awards, change orders, claims, anticipated losses, and others are recorded in the accounting period in which the events indicating a loss or change in estimates are known and the loss can be reasonably estimated. Such revisions could occur at any time and the effects may be material.

We have a history of making reasonably dependable estimates of the extent of progress towards completion, contract revenue and contract completion costs on our long-term engineering and construction contracts. However, due to uncertainties inherent in the estimation process, it is possible that actual completion costs may vary from estimates.

Change Orders and Claims.Change orders and/or claims occur when changes are experienced once contract performance is underway, and may arise under any of the contract types described below.

Change orders are modifications of an original contract that effectively change the existing provisions of the contract without adding new scope or terms. Change orders may include changes in specifications or designs, manner of performance, facilities, equipment, materials, sites and period of completion of the work. Either we or our clients may initiate change orders. Client agreement as to the terms of change orders is, in many cases, reached prior to work commencing; however, sometimes circumstances require that work progress without obtaining client agreement. Costs related to change orders are recognized as incurred. Revenues attributable to change orders that are unapproved as to price or scope are recognized to the extent that costs have been incurred if the amounts can be reliably estimated and their realization is probable. Revenues in excess of the costs attributable to change orders that are unapproved as to price or scope are recognized only when realization is assured beyond a reasonable doubt. Change orders that are unapproved as to both price and scope are evaluated as claims.

Claims are amounts in excess of agreed contract prices that we seek to collect from our clients or others for customer-caused delays, errors in specifications and designs, contract terminations, change orders that are either in dispute or are unapproved as to both scope and price, or other causes of unanticipated additional contract costs. Claims are included in total estimated contract revenues when the contract or other evidence provides a legal basis for the claim, when the additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of the deficiencies in the contract performance, when the costs associated with the claim are identifiable, and when the evidence supporting the claim is objective and verifiable. Revenue on claims is recognized only to the extent that contract costs related to the claims have been incurred and when it is probable that the claim will result in a bona fide addition to contract value which can be reliably estimated. No profit is recognized on claims until final settlement occurs. As a result, costs may be recognized in one period while revenues may be recognized when client agreement is obtained or claims resolution occurs, which can be in subsequent periods.

“At-risk” and “Agency” Contracts.The amount of revenues we recognize also depends on whether the contract or project represents an at-risk or an agency relationship between the client and us. Determination of the relationship is based on characteristics of the contract or the relationship with the client. For at-risk relationships where we act as the principal to the transaction, the revenue and the costs of materials, services, payroll, benefits, and other costs are recognized at gross amounts. For agency relationships, where we act as an agent for our client, only the fee revenue is recognized, meaning that direct project costs and the related reimbursement from the client are netted. Revenues from agency contracts and collaborative arrangements were not a material part of revenues for any period presented.

In classifying contracts or projects as either at-risk or agency, we consider the following primary characteristics to be indicative of at-risk relationships: (i) we acquire the related goods and services using our procurement resources, (ii) we assume the risk of loss under the contract and (iii) we are responsible for insurance coverage, employee-related liabilities and the performance of subcontractors.

We consider the following primary characteristics to be indicative of agency relationships: (i) our client owns the work facilities utilized under the contract, (ii) we act as a procurement agent for goods and services acquired with client funds, (iii) our client is invoiced for our fees, (iv) our client is exposed to the risk of loss and maintains insurance coverage, and (v) our client is responsible for employee-related benefit plan liabilities and any remaining liabilities at the end of the contract.

Contract Types

Our contract types include cost-plus, target-price, fixed-price, and time-and-materials contracts. Revenue recognition is determined based on the nature of the service provided, irrespective of the contract type, with engineering, construction and construction-related contracts accounted for under the percentage-of-completion method and service-related contracts accounted for under the proportional performance method.

Cost-Plus Contracts. We enter into four major types of cost-plus contracts. Revenue for the majority of our cost-plus contracts is recognized using the percentage-of-completion method:

Cost-Plus Fixed Fee. Under cost-plus fixed fee contracts, we charge our clients for our costs, including both direct and indirect costs, plus a fixed negotiated fee.

Cost-Plus Fixed Rate. Under our cost-plus fixed rate contracts, we charge clients for our direct costs plus negotiated rates based on our indirect costs.

Cost-Plus Award Fee. Some cost-plus contracts provide for award fees or penalties based on performance criteria in lieu of a fixed fee or fixed rate. Other contracts include a base fee component plus a performance-based award fee. In addition, we may share award fees with subcontractors and/or our employees. We accrue fee sharing as related award fee revenue is earned. We take into consideration the award fee or penalty on contracts when estimating revenues and profit rates, and we record revenues related to the award fees when there is sufficient information to assess anticipated contract performance. On contracts that represent higher than normal risk or technical difficulty, we defer all award fees until an award fee letter is received. Once an award fee letter is received, the estimated or accrued fees are adjusted to the actual award amount.

Cost-Plus Incentive Fee. Some of our cost-plus contracts provide for incentive fees based on performance against contractual milestones. The amount of the incentive fees varies, depending on whether we achieve above-, at- or below-target results. We recognize incentive fees revenues as milestones are achieved, assuming that we will achieve at-target results, unless our estimates indicate our cost at completion to be significantly above or below target.

Target-Price Contracts. Under our target-price contracts, project costs are reimbursable. Our fee is established against a target budget that is subject to changes in project circumstances and scope. Should the project costs exceed the target budget within the agreed-upon scope, we generally degrade a portion of our fee or profit to mitigate the excess cost; however, the customer reimburses us for the costs that we incur if costs continue to escalate beyond our expected fee. If the project costs are less than the target budget, we generally recover a portion of the project cost savings as additional fee or profit. We recognize revenues on target-price contracts using the percentage-of-completion method.

Fixed-Price Contracts. We enter into two major types of fixed-price contracts:

Firm Fixed-Price (“FFP”). Under FFP contracts, our clients pay us an agreed fixed-amount negotiated in advance for a specified scope of work. We generally recognize revenues on FFP contracts using the percentage-of-completion method. If the nature or circumstances of the contract prevent us from preparing a reliable estimate at completion, we will delay profit recognition until adequate information about the contract's progress becomes available. Prior to completion, our recognized profit margins on any FFP contract depend on the accuracy of our estimates and will increase to the extent that our current estimates of aggregate actual costs are below amounts previously estimated. Conversely, if our current estimated costs exceed prior estimates, our profit margins will decrease and we may realize a loss on a project.

Fixed-Price Per Unit (“FPPU”). Under our FPPU contracts, clients pay us a set fee for each service or production transaction that we complete. We recognize revenues under FPPU contracts as we complete the related service or production transactions for our clients generally using the proportional performance method. Some of our FPPU contracts are subject to maximum contract values.

Time-and-Materials Contracts. Under our time-and-materials contracts, we negotiate hourly billing rates and charge our clients based on the actual time that we spend on a project. In addition, clients reimburse us for our actual out-of-pocket costs of materials and other direct incidental expenditures that we incur in connection with our performance under the contract. The majority of our time-and-material contracts are subject to maximum contract values and, accordingly, revenues under these contracts are generally recognized under the percentage-of-completion method. However, time-and-materials contracts that are service-related contracts are accounted for utilizing the proportional performance method. Revenues on contracts that are not subject to maximum contract values are recognized based on the actual number of hours we spend on the projects plus any actual out-of-pocket costs of materials and other direct incidental expenditures that we incur on the projects. Our time-and-materials contracts also generally include annual billing rate adjustment provisions.

Segmenting and Combining Contracts

Occasionally a contract may include several elements or phases, each of which was negotiated separately with our client and agreed to be performed without regard to the performance of others. We follow the criteria set forth in the accounting guidance when combining and segmenting contracts. When combining contracts, revenues and profits are earned and reported uniformly over the performance of the combined contracts. When segmenting contracts, we assign revenues and costs to the different elements or phases to achieve different rates of profitability based on the relative value of each element or phase to the estimated contract revenues. Values assigned to the segments are based on our normal historical prices and terms of such services to other clients. Also, a group of contracts may be so closely related that they are, in effect, part of a single project with an overall profit margin.

Accounts Receivable and Costs and Accrued Earnings in Excess of Billings on Contracts

Accounts receivable in the accompanying Consolidated Balance Sheets are primarily comprised of amounts billed to clients for services already provided, but which have not yet been collected. Occasionally, under the terms of specific contracts, we are permitted to submit invoices in advance of providing our services to our clients and, to the extent they have not been collected, these amounts are also included in accounts receivable.

Costs and accrued earnings in excess of billings on contracts (also referred to as “Unbilled Accounts Receivable”) in the accompanying Consolidated Balance Sheets represent unbilled amounts earned and reimbursable under contracts. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of milestones or completion of the project. Generally, such unbilled amounts will be billed and collected over the next twelve months.

Accounts receivable and costs and accrued earnings in excess of billings on contracts include certain amounts recognized related to unapproved change orders (amounts representing the value of proposed contract modifications, but which are unapproved as to either price or scope) and claims, (change orders that are unapproved as to both price and scope) that have not been collected and, in the case of balances included in costs and accrued earnings in excess of billings on contracts, may not be billable until an agreement or, in the case of claims, a settlement is reached. Most of those balances are not material and are typically resolved in the ordinary course of business.

Billings in Excess of Costs and Accrued Earnings on Contracts

Billings in excess of costs and accrued earnings on contracts in the accompanying Consolidated Balance Sheets is comprised of cash collected from clients and billings to clients on contracts in advance of work performed, advance payments negotiated as a contract condition, estimated losses on uncompleted contracts, normal profit liabilities, project-related legal liabilities;and other project-related reserves. The majority of the unearned project-related costs will be earned over the next twelve months.

We record provisions for estimated losses on uncompleted contracts in the period in which such losses become probable. The cumulative effects of revisions to contract revenues and estimated completion costs are recorded in the accounting period in which the amounts become probableand can be reasonably estimated. These revisions can include such items as the effects of change orders and claims, warranty claims, liquidated damages or other contractual penalties, adjustments for audit findings on U.S. or other government contracts and contract closeout settlements.

Receivable Allowances

We reduce our accounts receivable and costs and accrued earnings in excess of billings on contracts by estimating an allowance for amounts that may become uncollectible or unrealizable in the future. We determine our estimated allowance for uncollectible amounts based on management's judgments regarding our operating performance related to the adequacy of the services performed or products delivered, the status of change orders and claims, our experience settling change orders and claims and the financial condition of our clients, which may be dependent on the type of client and current economic conditions to which the client may be subject.

Classification of Current Assets and Liabilities

Our accounts receivable include retentions associated with long-term contracts, which are generally not billable until near or at the completion of the projects or milestones and/or delivery of services. For contracts with terms that exceed one year, retentions are generally billed beyond a year from the service date. Our Unbilled Accounts Receivable include amounts related to milestone payment clauses, which may provide for payments to be received beyond a year from the date the Unbilled Accounts Receivable are recognized. Unbilled Accounts Receivable related to performance-based incentives that we do not expect to bill within twelve months of the balance sheet date are included in “Other long-term assets.” Based on our historical experience, we generally consider the collection risk related to these amounts to be low. When events or conditions indicate that the amounts outstanding may become uncollectible, an allowance is estimated and recorded.

Subcontractor payables, subcontractor retentions, and billings in excess of costs and accrued earnings on contracts each contain amounts that, depending on contract performance, resolution of U.S. government contract audits, negotiations, change orders, claims or changes in facts and circumstances, may not require payment within one year.

Accounts receivable – retentions represent amounts billed to clients for services performed that, by the underlying contract terms, will not be paid until the projects meet contractual milestones, or are at or near completion. Correspondingly, subcontractors payable – retentions represent amounts billed to us by subcontractors for services performed that, by their underlying contract terms, do not require payment by us until the projects are at or near completion.

Accounts payable and subcontractors payable include our estimate of incurred but unbilled subcontractor costs.

Concentrations of Credit Risk

Our accounts receivable and costs and accrued earnings in excess of billings on contracts are potentially subject to concentrations of credit risk. Our credit risk on accounts receivable is limited due to the large number of contracts for clients that comprise our customer base and their dispersion across different business and geographic areas. We estimate and maintain an allowance for potential uncollectible accounts, and such estimates have historically been within management's expectations. See Note 4, “Accounts Receivable and Costs and Accrued Earnings in Excess of Billings on Contracts” for more details. Our cash and cash equivalents are maintained in accounts held by major banks and financial institutions located primarily in North America, Europe and Asia Pacific.

Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid investments with maturities of 90 days or less at the date of purchase and include interest-bearing bank deposits and money market funds. At December 28, 2012 and December 30, 2011, restricted cash balances were $17.1million and $21.0 million, respectively. These amounts were included in “Other current assets” on our Consolidated Balance Sheets. For cash held by our consolidated joint ventures, see Note 6, “Joint Ventures.”

Derivative Instruments

We are exposed to the risk of changes in interest rates on our long-term debt. Sometimes, we manage this risk through the use of derivative instruments. All derivative financial instruments are recorded on the balance sheet at fair value. At dates entered into, the derivatives hedge the variability in cash flows received or paid in connection with a recorded asset or liability.

Changes in the fair value of cash flow hedges are recorded in other comprehensive income until earnings are affected by the variability of cash flows of the hedged transactions. We would discontinue hedge accounting prospectively when the derivatives are no longer effective in offsetting changes in cash flows of the hedged items, the derivatives are sold or terminated or it is no longer probable that the forecasted transactions will occur. Cash flows resulting from derivatives that are accounted for as hedges may be classified in the same category as the cash flows from the items being hedged.

We use derivative instruments only for risk management purposes and not for speculation or trading. The amount, maturity, and other specifics of the hedge, if any, are determined by the specific derivative instrument. If a derivative contract is entered into, we either determine that it is an economic hedge or we designate the derivative as a cash flow or fair value hedge. We formally document all relationships between hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking various hedged transactions. For those derivatives designated as cash flow or fair value hedges, we formally assess, both at the derivatives' inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the hedged items. The ineffective portion of hedging transactions is recognized in current income.

Fair Value Measurement

We determine the fair values of our financial instruments, including debt instruments and pension and post-retirement plan assets based on inputs or assumptions that market participants would use in pricing an asset or a liability. We categorize our instruments using a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The recorded values of cash and cash equivalents, accounts receivable, and accounts payable approximate fair values based on their short-term nature.

Our long-term debt includes bothfloating-rateand fixed rate instruments. See Note 11, “Fair Value of Debt Instruments and Derivative Instruments,” for additional disclosure.

Our fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.

Inventory

Inventory is stated at cost (first-in, first-out or average cost), but not in excess of net realizable value. Net realizable value represents the estimated selling price for inventory less the estimated costs of completion and the estimated costs associated with the sale. The cost of inventory includes expenditures incurred in acquiring the inventory, production or conversion costs, and other costs incurred in bringing the inventory items to their existing location and condition. For fabricated inventory and work in progress, cost includes overhead allocated based on normal operating capacity. A write down for excess or inactive inventory is recorded based upon an analysis that considers current inventory levels, historical usage patterns, future sales expectations and salvage value.See Note 5, “Inventory,” for additional disclosure.

Property and Equipment

Property and equipment are stated at cost. In the year assets are retired or otherwise disposed of, the costs and related accumulated depreciation are removed from the accounts and any gain or loss on disposal is reflected in the Consolidated Statement of Operations. Depreciation is provided on the straight-line and the declining methods using estimated useful lives less residual value. Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less. We capitalize our repairs- and maintenance-related costs that extend the estimated useful lives of property and equipment; otherwise, repairs- and maintenance-related costs are expensed. Whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable, we compare the carrying value to the fair value, which is measured using the prices in active markets for similar assets, and recognize the difference as an impairment loss.See Note 7, “Property and Equipment,” for additional disclosure.

Internal-Use Computer Software

We expense or capitalize costs associated with the development of internal-use software as follows:

Preliminary Project Stage: Both internal and external costs incurred during this stage are expensed as incurred.

Application Development Stage: Both internal and external costs incurred to purchase and develop computer software are capitalized after the preliminary project stage is completed and management authorizes the computer software project. However, training costs and the process of data conversion from the old system to the new system, which includes purging or cleansing of existing data, reconciliation or balancing of old data to the converted data in the new system, are expensed as incurred.

Post-Implementation/Operation Stage: All training costs and maintenance costs incurred during this stage are expensed as incurred.

Costs of upgrades and enhancements are capitalized if the expenditures will result in adding functionality to the software. Capitalized software costs are depreciated using the straight-line method over the estimated useful life of the related software, which may be up to ten years.

Goodwill and Intangible Assets

We amortize our intangible assets based on the period over whichthe contractual or economic benefits of the intangible assets are expected to be realized. We assess our intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an intangible asset may not be recoverable. Examples of such events are i) significant adverse changes in its market value, useful life, physical condition, or in the business climate that could affect its value; ii) a current-period operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of the intangible asset; or iii) a current expectation that, more likely than not, the intangible asset will be sold or otherwise disposed of before the end of its previously estimated useful life.

Goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. We assess our goodwill for impairment at least annually as of the end of the first month following our September reporting period or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable.

We believe the methodology that we use to review impairment of goodwill, which includes a significant amount of judgment and estimates, provides us with a reasonable basis to determine whether impairment has occurred. However, many of the factors employed in determining whether our goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes could result in future impairments.

Goodwill impairment reviews involve a two-step process. The first step is a comparison of each reporting unit's fair value to its carrying value. We estimate fair value using discounted cash flow analyses, referred to as the income approach. The income approach uses a reporting unit's projection of estimated cash flows and discounts those back to the present using a weighted-average cost of capital that reflects current market conditions. To arrive at our cash flow projections, we consider estimates of economic and market activity over a projection period of ten years, management's expectations of growth rates in revenues, costs, estimates of future expected changes in operating margins and capital expenditures. Other significant estimates and assumptions include long-term growth rates and changes in future working capital requirements.

We also consider indications obtained from the market approach. We applied market multiples derived from stock market prices of companies that are engaged in the same or similar lines of business as our reporting units and that are actively traded on a free and open market, or applied market multiples derived from transactions of significant interests in companies engaged in the same or similar lines of business as our reporting units, to the corresponding measure of financial performance for our reporting units produces estimates of value at the noncontrolling marketable level.

In reaching our final estimate of value, we considered the fair values derived from using both the income and market approaches. We gave primary weight to the income approach because it was deemed to be the most applicable.

When performing our impairment analysis, we also reconcile the sum of the fair values of our reporting units with our market capitalization to determine if the sum reasonably reconciles with the external market indicators. If our reconciliation indicates a significant difference between our external market capitalization and the sum of thefair values of our reporting units, we review and adjustthe assumptions employed in our analysis, and examine if the implied control premium is reasonable in light of current market conditions.

If the carrying value of the reporting unit is higher than its fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment. The amount of impairment is determined by comparing the implied fair value of the reporting unit's goodwill to the carrying value of the goodwill calculated in the same manner as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill is less than the recorded goodwill, we would record an impairment charge for the difference.

There are several instances that may cause us to further test our goodwill for impairment between the annual testing periods including: (i) continued deterioration of market and economic conditions that may adversely impact our ability to meet our projected results; (ii) declines in our stock price caused by continued volatility in the financial markets that may result in increases in our weighted-average cost of capital or other inputs to our goodwill assessment; and (iii) the occurrence of events that may reduce the fair value of a reporting unit below its carrying amount, such as the sale of a significant portion of one or more of our reporting units.

If our goodwill were impaired, we would be required to record a non-cash charge that could have a material adverse effect on our consolidated financial statements.

See Note 9, “Goodwill and Intangible Assets,” for more disclosure about our test for goodwill impairment.

Self-insurance Reserves

Self-insurance reserves represent reserves established as a result of insurance programs under which we self-insure portions of our business risks. We carry substantial premium-paid, traditional risk transfer insurance for our various business risks; however, we self-insure and establish reserves for the retentions on workers' compensation insurance, general liability, automobile liability, and professional errors and omissions liability.

Foreign Currency Translation

We determine the functional currency of our international operating entities based upon the currency of the primary environment in which they operate. Where the functional currency is not the U.S. dollar, translation of assets and liabilities to U.S. dollars is based on exchange rates at the balance sheet date. Translation of revenue and expenses to U.S. dollars is based on the average rate during the period. Foreign currency differences arising from transactions denominated in currencies other than the functional currency, such as selling services or purchasing materials, results in transaction gains or losses, and are generally included in results of operations.

Foreign currency differences arising from the translation of intercompany loans from a foreign currency into the functional currency of an entity, which are of a long-term investment nature (that is, settlement is not planned or anticipated in the foreseeable future) are recorded in “Accumulated other comprehensive income (loss)” on our Consolidated Balance Sheets. Foreign currency differences arising from the translation of other intercompany loans are recorded in “Other income (expense)” on our Consolidated Statements of Operations.

Income Taxes

We use the asset and liability approach for financial accounting and reporting for income taxes. We file income, franchise, gross receipts and similar tax returns in many jurisdictions. Our tax returns are subject to audit by the Internal Revenue Service, most states in the U.S., and by various government agencies representing many jurisdictions outside the U.S. We estimate and provide for additional income taxes that may be assessed by the various taxing authorities. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Income tax expense is the amount of tax payable for the period plus or minus the change in deferred tax assets and liabilities during the period.See Note 13, “Income Taxes,” for additional disclosure.

Valuation allowances based on our judgments and estimates are established when necessary to reduce deferred tax assets to the amount expected to be realized and based on expected future operating results and available tax alternatives. Our estimates are based on facts and circumstances in existence as well as interpretations of existing tax regulations and laws applied to the facts and circumstances. Management believes that realization of deferred tax assets in excess of the valuation allowance is more likely than not.

Pension Plans and Post-retirement Benefits

We account for our defined benefit pension plans and post-retirement benefits using actuarial valuations that are based on assumptions, including discount rates, long-term rates of return on plan assets, and rates of change in participant compensation levels. We evaluate the funded status of each of our defined benefit pension plans and post-retirement benefit plans using these assumptions, consider applicable regulatory requirements, tax deductibility, reporting considerations and other relevant factors, and thereby, determine the appropriate funding level for each period. The discount rate used to calculate the present value of the pension and post-retirement benefit obligations is assessed at least annually. The discount rate represents the rate inherent in the price at which the plans' obligations are intended to be settled at the measurement date. See Note 14, “Employee Retirement and Post-Retirement Benefit Plans,” for additional disclosure.

Noncontrolling interests

Noncontrolling interests represent the equity investments of the minority owners in our joint ventures and other subsidiary entities that we consolidate in our financial statements.

Business Combinations

We account for business combinations under the purchase accounting method. The cost of an acquired company is assigned to the tangible and intangible assets purchased and the liabilities assumed on the basis of their fair values at the date of acquisition. The determination of fair values of assets and liabilities acquired requires us to make estimates and use valuation techniques when market value is not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. The transaction costs associated with business combinations are expensed as they are incurred. See Note 8, “Acquisitions,” for more information.

Reclassifications

We made reclassifications to the prior year's financial statements to conform them to the current period's presentation.These reclassifications have no effect on our consolidated net assets or net cash flows. In particular, we reclassified from “Costs and accrued earnings in excess of billings on contracts” to “Other long-term assets” those unbilled receivables related to performance-based incentives that we do not expectto bill within twelve months of the balance sheet date.

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JOINT VENTURES (TABLES)

12 Months Ended

Dec. 28, 2012

Consolidated Joint Ventures [Abstract]

Schedule of consolidated joint ventures [Table Text Block]

			December 28,		December 30,
(In millions)			2012		2011
Cash and cash equivalents			$	80.1	$	91.4
Net accounts receivable				282.2		246.8
Other current assets				2.9		1.5
Noncurrent assets				143.3		103.4
		Total assets	$	508.5	$	443.1
Accounts and subcontractors payable			$	185.0	$	151.9
Billings in excess of costs and accrued earnings on contracts				8.7		35.2
Accrued expenses and other				40.0		30.6
Noncurrent liabilities				22.7		15.2
	Total liabilities			256.4		232.9
Total URS equity				110.2		103.0
Noncontrolling interests				141.9		107.2
	Total owners’ equity			252.1		210.2
		Total liabilities and owners’ equity	$	508.5	$	443.1

Unconsolidated Joint Ventures [Abstract]

Schedule of unconsolidated joint ventures [Table Text Block]

(In millions)	Unconsolidated VIEs
December 28, 2012
Current assets	$	594.1
Noncurrent assets	$	23.8
Current liabilities	$	372.5
Noncurrent liabilities	$	7.8
December 30, 2011
Current assets	$	457.6
Noncurrent assets	$	8.8
Current liabilities	$	288.1
Noncurrent liabilities	$	0.1
For the year ended December 28, 2012 (1)
Revenues	$	1,662.2
Cost of revenues	$	(1,440.6)
Income from continuing operations before tax	$	221.6
Net income	$	206.0
For the year ended December 30, 2011 (1, 2)
Revenues	$	1,498.0
Cost of revenues	$	(1,201.5)
Income from continuing operations before tax	$	296.5
Net income	$	274.7
For the year ended December 31, 2010 (1, 2)
Revenues	$	1,409.7
Cost of revenues	$	(1,225.2)
Income from continuing operations before tax	$	184.5
Net income	$	169.6

• Income from unconsolidated U.S. joint ventures is generally not taxable in most tax jurisdictions in the U.S. The tax expenses on our other unconsolidated joint ventures are primarily related to foreign taxes.
• In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture's position, finding that its mechanic's lien did not have priority over the senior lenders. As a result of the court's decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

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STOCKHOLDERS' EQUITY (TABLES)

12 Months Ended

Dec. 28, 2012

Stockholders' equity (Tables) [Abstract]

Dividends [Table Text Block]

Declaration Date	Dividend Per Share		Record Date		Total Estimated Amount		Payment Date
(In millions, except per share data)
February 24, 2012	$	0.20		March 16, 2012	$	15.2		April 6, 2012
May 4, 2012	$	0.20		June 15, 2012	$	15.4		July 6, 2012
August 3, 2012	$	0.20		September 14, 2012	$	15.4		October 5, 2012
November 2, 2012	$	0.20		December 14, 2012	$	15.4		January 4, 2013

Declaration Date	Dividend Per Share		Record Date		Total Estimated Amount		Payment Date
(In millions, except per share data)
February 24, 2012	$	0.20		March 16, 2012	$	15.2		April 6, 2012
May 4, 2012	$	0.20		June 15, 2012	$	15.4		July 6, 2012
August 3, 2012	$	0.20		September 14, 2012	$	15.4		October 5, 2012
November 2, 2012	$	0.20		December 14, 2012	$	15.4		January 4, 2013

Schedule of treasury stock by class [Table Text Block]

	Year Ended
	December 28,		December 30,		December 31,
(In millions, except average price paid per share)	2012		2011		2010
Shares of common stock repurchased		1.0		6.0		3.0
Average price paid per share	$	40.00	$	40.47	$	42.75
Cost of common stock repurchased	$	40.0	$	242.8	$	128.3

Stock-based compensation expenses [Table Text Block]

			Year Ended
			December 28,		December 30,		December 31,
(In millions)			2012		2011		2010
Stock-based compensation expense:
	Restricted stock awards and units		$	43.1	$	44.8	$	43.6
	Employee stock purchase plan			0.5		0.5		0.4
		Stock-based compensation expense	$	43.6	$	45.3	$	44.0
Stock-based compensation expense included in:
	Cost of revenues		$	33.2	$	35.1	$	34.0
	General and administrative expenses			10.4		10.2		10.0
		Stock-based compensation expense	$	43.6	$	45.3	$	44.0
Total income tax benefits recognized in our net income related to stock-based compensation expense			$	16.0	$	17.3	$	16.9

Schedule of share-based compensation, restricted stock fair values [Table Text Block]

	December 28,		December 30,
(In millions)	2012		2011
Fair value of shares vested	$	42.0	$	41.8
Grant date fair value of restricted stock awards and units granted	$	54.3	$	42.1

Status of and changes in nonvested restricted stock awards and units [Table Text Block]

		Year Ended
		December 28, 2012
			Weighted-
		Shares	Average Grant
		(in millions)	Date Fair Value
Nonvested at December 30, 2011		2.4	$	42.86
	Granted	1.4	$	36.79
	Vested	(1.0)	$	41.69
	Forfeited	(0.1)	$	42.44
Nonvested at December 28, 2012		2.7	$	40.03

Status and changes of stock options [Table Text Block]

							Weighted-
							Average
					Weighted-		Remaining	Aggregate
		Options			Average		Contractual	Intrinsic Value
		(in millions)			Exercise Price		Term (in years)	(in millions)
Outstanding and exercisable at January 1, 2010			0.7		$	22.99	3.46	$	16.5
	Exercised		(0.1)		$	21.03
	Forfeited/expired/cancelled		—	†	$	18.13
Outstanding and exercisable at December 31, 2010			0.6		$	23.38	2.62	$	11.7
	Exercised		(0.1)		$	22.80
	Forfeited/expired/cancelled		—	†	$	22.30
Outstanding and exercisable at December 30, 2011			0.5		$	23.55	1.83	$	5.8
	Exercised		(0.2)		$	22.29
	Forfeited/expired/cancelled		—	†	$	24.36
Outstanding and exercisable at December 28, 2012			0.3		$	24.28	1.27	$	4.5

†Represents fewer than fifty thousand shares.

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GOODWILL (DETAILS) (USD $) In Millions, unless otherwise specified	3 Months Ended				9 Months Ended	12 Months Ended
	Dec. 30, 2011		Sep. 30, 2011		Sep. 30, 2011	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Finite-Lived Intangible Assets [Line Items]
Balance					$ 514.1	$ 522.0		$ 514.1
Acquisitions	70.1					266.3		70.1
Amortization expense						(101.2)		(60.6)		(49.2)
Other additions and foreign currency translation						5.1		(1.6)
Balance	522.0					692.2		522.0		514.1
Table of estimated future amortization expense of intangible assets [Abstract]
Future amortization expense, year one						108.7
Future amortization expense, year two						95.3
Future amortization expense, year three						83.4
Future amortization expense, year four						78.1
Future amortization expense, year five						72.1
Future amortization expense, after year five						254.6
Total estimated future amortization expense	522.0					692.2		522.0		514.1
Goodwill [Line Items]
Goodwill	2,773.0					3,247.1		2,773.0		3,393.2
Goodwill acquired						456.3		214.3
Goodwill impairment	(27.7)	[1]	(798.1)	[1]				(825.8)
Other adjustments						17.8	[2]	(8.7)	[2]
Goodwill (Textuals) [Abstract]
Goodwill alllocation adjustment						(1.7)		(5.3)
Goodwill adjustment resulting from the sale of our business								2.2
Foreign currency translation						(16.1)		(1.2)
Goodwill impairment review [Abstract]
Reporting unit fair value						6,684.0
Reporting unit carrying value						5,597.3
Goodwill impairment loss after tax	32.9				699.3	732.2
Infastructure and Environment Segment [Member]
Goodwill [Line Items]
Goodwill	758.1					772.9		758.1		754.6
Goodwill acquired								12.2
Other adjustments						14.8	[2]	(8.7)	[2]
Goodwill impairment review [Abstract]
Reporting unit fair value						1,512.0
Reporting unit carrying value						1,341.5
Reporting unit percent fair value above carrying value						12.70%
Federal Services Segment [Member]
Goodwill [Line Items]
Goodwill	708.6					710.3		708.6		854.8
Goodwill acquired								202.1
Goodwill impairment								(348.3)
Other adjustments						1.7	[2]
Goodwill impairment review [Abstract]
Reporting unit fair value						1,218.0
Reporting unit carrying value						1,017.0
Reporting unit percent fair value above carrying value						19.80%
Energy And Construction Segment [Member]
Goodwill [Line Items]
Goodwill	1,306.3					1,306.3		1,306.3		1,783.8
Goodwill impairment								(477.5)
Goodwill impairment review [Abstract]
Reporting unit fair value						2,242.0
Reporting unit carrying value						1,736.0
Reporting unit percent fair value above carrying value						29.10%
Energy And Construction Global Management And Operations Services Group [Member]
Goodwill [Line Items]
Goodwill	405.4					405.4		405.4		565.4
Goodwill impairment								(160.0)
Goodwill impairment review [Abstract]
Reporting unit fair value						834.0
Reporting unit carrying value						677.0
Reporting unit percent fair value above carrying value						23.20%
Energy And Construction Civil Construction And Mining Group [Member]
Goodwill [Line Items]
Goodwill	212.3					212.3		212.3		293.9
Goodwill impairment								(81.6)
Goodwill impairment review [Abstract]
Reporting unit fair value						356.0
Reporting unit carrying value						267.9
Reporting unit percent fair value above carrying value						32.90%
Energy And Construction Industrial Process Group [Member]
Goodwill [Line Items]
Goodwill	118.0					118.0		118.0		189.4
Goodwill impairment								(71.4)
Goodwill impairment review [Abstract]
Reporting unit fair value						263.0
Reporting unit carrying value						157.8
Reporting unit percent fair value above carrying value						66.70%
Energy And Construction Power Group [Member]
Goodwill [Line Items]
Goodwill	570.6					570.6		570.6		735.1
Goodwill impairment								(164.5)
Goodwill impairment review [Abstract]
Reporting unit fair value						789.0
Reporting unit carrying value						633.3
Reporting unit percent fair value above carrying value						24.60%
Oil and Gas Segment [Member]
Goodwill [Line Items]
Goodwill						457.6
Goodwill acquired						456.3
Other adjustments						1.3	[2]
Goodwill impairment review [Abstract]
Reporting unit fair value						1,712.0
Reporting unit carrying value						1,502.8
Reporting unit percent fair value above carrying value						19.40%
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						40 years 0 months 0 days
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						3 years 0 months 0 days
Customer Relationships Contracts Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Balance					487.3	491.1		487.3
Acquisitions	62.9					163.0		62.9
Amortization expense						(93.9)		(56.8)
Other additions and foreign currency translation						3.3		(2.3)
Balance	491.1					563.5		491.1
Table of estimated future amortization expense of intangible assets [Abstract]
Future amortization expense, year one						101.3
Future amortization expense, year two						89.2
Future amortization expense, year three						78.1
Future amortization expense, year four						72.7
Future amortization expense, year five						67.3
Future amortization expense, after year five						154.9
Total estimated future amortization expense	491.1					563.5		491.1
Customer Relationships Contracts Backlog [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						16 years 0 months 0 days
Customer Relationships Contracts Backlog [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						1 year 0 months 0 days
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Balance					24.9	25.6		24.9
Acquisitions	2.5					93.5		2.5
Amortization expense						(4.8)		(1.6)
Other additions and foreign currency translation						1.7		(0.2)
Balance	25.6					116.0		25.6
Table of estimated future amortization expense of intangible assets [Abstract]
Future amortization expense, year one						5.6
Future amortization expense, year two						4.6
Future amortization expense, year three						4.2
Future amortization expense, year four						4.3
Future amortization expense, year five						4.3
Future amortization expense, after year five						93.0
Total estimated future amortization expense	25.6					116.0		25.6
Trade Names [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						40 years 0 months 0 days	[3]
Trade Names [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						1 year 0 months 0 days	[3]
Lease Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Balance					1.9	5.3		1.9
Acquisitions	4.7					9.8		4.7
Amortization expense						(2.5)		(2.2)
Other additions and foreign currency translation						0.1		0.9
Balance	5.3					12.7		5.3
Table of estimated future amortization expense of intangible assets [Abstract]
Future amortization expense, year one						1.8
Future amortization expense, year two						1.5
Future amortization expense, year three						1.1
Future amortization expense, year four						1.1
Future amortization expense, year five						0.5
Future amortization expense, after year five						6.7
Total estimated future amortization expense	$ 5.3					$ 12.7		$ 5.3
Lease Agreements [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						13 years 0 months 0 days
Lease Agreements [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful life						1 year 0 months 0 days

[1] For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively. During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively. See further discussion in Note 9, “Goodwill and Intangible Assets.”

[2] For the year ended December 30, 2011, “Other Adjustments” include an adjustment for the final allocation of our purchase price of Scott Wilson of $5.3 million, an adjustment resulting from the sale of a business of $2.2 million, and an adjustment for foreign currency translation of $1.2 million. For the year ended December 28, 2012, “Other adjustments” include an adjustment for foreign currency translation of $16.1 million, and an adjustment for the final allocation of our purchase price of Apptis of $1.7 million.

[3] During the fourth quarter of 2011, we revised the estimated useful life of the Scott Wilson trade name from 25 years to 12 years because we decided to reduce the use of the trade name. The estimated useful life of the Flint trade name in the U.S. and Canada is 40 years.

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 28, 2012		Dec. 30, 2011
Current assets:
Cash and cash equivalents	$ 314,500,000		$ 436,000,000
Accounts receivable, including retentions of $114.4 and $67.5, respectively	1,554,800,000		1,114,700,000
Costs and accrued earnings in excess of billings on contracts	1,384,300,000		1,132,000,000
Less receivable allowances	(69,700,000)		(43,100,000)
Net accounts receivable	2,869,400,000		2,203,600,000
Deferred tax assets	67,600,000		63,000,000
Inventory	61,500,000		19,500,000
Other current assets	204,200,000		181,800,000
Total current assets	3,517,200,000		2,903,900,000
Investments in and advances to unconsolidated joint ventures	278,300,000		107,700,000
Property and equipment at cost, net	687,500,000	[1],[2]	269,400,000	[1],[2]
Intangible assets, net	692,200,000		522,000,000
Goodwill	3,247,100,000		2,773,000,000
Other long-term assets	364,200,000		286,600,000
Total assets	8,786,500,000		6,862,600,000
Current liabilities:
Current portion of long-term debt	71,800,000		61,500,000
Accounts payable and subcontractors payable, including retentions of $32.3 and $39.6, respectively	803,500,000		659,100,000
Accrued salaries and employee benefits	558,800,000		527,000,000
Billings in excess of costs and accrued earnings on contracts	289,100,000		310,800,000
Other current liabilities	277,800,000		176,500,000
Total current liabilities	2,001,000,000		1,734,900,000
Long-term debt	1,992,500,000		737,000,000
Deferred tax liabilities	328,300,000		276,500,000
Self-insurance reserves	129,800,000		132,700,000
Pension and post-retirement benefit obligations	300,900,000		276,000,000
Other long-term liabilities	271,000,000		221,100,000
Total liabilities	5,023,500,000		3,378,200,000
Commitments and contingencies
URS stockholders' equity:
Preferred stock, authorized 3.0 shares; no shares outstanding	0		0
Common stock par value $.01; authorized 200.0 shares; 88.9 and 87.8 shares issued, respectively; and 76.8 and 76.7 shares outstanding, respectively	900,000		900,000
Treasury stock, 12.1 and 11.1 shares at cost, respectively	(494,900,000)		(454,900,000)
Additional paid-in capital	3,003,900,000		2,966,800,000
Accumulated other comprehensive loss	(113,200,000)		(110,800,000)
Retained earnings	1,224,400,000		975,200,000
Total URS stockholders' equity	3,621,100,000		3,377,200,000
Noncontrolling interests	141,900,000		107,200,000
Total stockholders' equity	3,763,000,000		3,484,400,000
Total liabilities and stockholders' equity	$ 8,786,500,000		$ 6,862,600,000

[1] Property and equipment at cost, net is categorized by the location of incorporation of the legal entities. Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

[2] The unamortized computer software costs were $71.1 million and $60.8 million, respectively, as of December 28, 2012 and December 30, 2011. The increases in property and equipment were mainly due to our acquisition of Flint.

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SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (TABLES)

12 Months Ended

Dec. 28, 2012

Selected Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data [Table Text Block]

		2012 Quarters Ended
(In millions, except per share data)		March 30		June 29		September 28		December 28
Revenues		$	2,361.5	$	2,690.7	$	2,947.6	$	2,972.7
Cost of revenues			(2,203.2)		(2,527.5)		(2,753.3)		(2,810.5)
Acquisition-related expenses (1)			(5.6)		(11.3)		0.8		—
Operating income (loss) (2)			161.4		149.5		203.6		171.4
Other income (expense) (3)			2.5		(9.2)		10.8		(3.6)
Income tax benefit (expense)			(48.6)		(40.5)		(66.1)		(34.7)
Net income including noncontrolling interests			105.5		79.1		127.8		113.4
Noncontrolling interests in income of consolidated subsidiaries			(25.8)		(25.5)		(21.1)		(42.8)
Net income attributable to URS			79.7		53.6		106.7		70.6
Earnings per share:
	Basic	$	1.08	$	0.72	$	1.43	$	0.95
	Diluted	$	1.07	$	0.72	$	1.43	$	0.95
Weighted-average shares outstanding:
	Basic		74.0		74.2		74.5		74.5
	Diluted		74.3		74.6		74.6		74.6
		2011 Quarters Ended
(In millions, except per share data)		April 1		July 1		September 30		December 30
Revenues		$	2,319.8	$	2,360.3	$	2,471.7	$	2,393.2
Cost of revenues			(2,202.7)		(2,228.3)		(2,300.1)		(2,257.7)
Acquisition-related expenses			—		(1.0)		—		—
Restructuring costs (4)			—		—		—		(5.5)
Goodwill impairment (5)			—		—		(798.1)		(27.7)
Operating income (6)			132.1		150.6		(620.2)		114.1
Income tax benefit (expense)			(39.0)		(45.5)		39.5		(46.8)
Net income (loss) including noncontrolling interests			87.9		100.0		(585.8)		60.6
Noncontrolling interests in income of consolidated subsidiaries			(25.8)		(33.2)		(37.3)		(32.2)
Net income (loss) attributable to URS			62.1		66.8		(623.1)		28.4
Earnings (loss) per share:
	Basic	$	0.79	$	0.87	$	(8.05)	$	0.37
	Diluted	$	0.79	$	0.86	$	(8.05)	$	0.37
Weighted-average shares outstanding:
	Basic		78.4		77.2	$	77.4	$	76.3
	Diluted		78.8		77.7	$	77.4	$	76.4

• For the year ended December 28, 2012, we recorded acquisition-related expenses in connection with our acquisition of Flint. See further discussion in Note 8, “Acquisitions.”
• For the first quarter of 2012, we revised our operating income from $163.9 million, as previously reported in our 10-Q, to $161.4 million due to the reclassification of a $2.5 million gain recognized on foreign currency forward contracts from “General and administrative expenses” to “Other income (expenses)” on our Consolidated Statements of Operations. This revision had no impact on net income attributable to URS or EPS.
• During fiscal 2012, “Other income (expenses)” represents foreign currency gains (losses) recognized on intercompany financing arrangements and foreign currency forward contracts. See further discussion in Note 11, “Fair Value of Debt Instruments and Derivative Instruments.”
• For the year ended December 30, 2011, we recorded restructuring costs resulting from the integration of Scott Wilson into our existing U.K. and European business and necessary responses to reductions in market opportunities in Europe. See further discussion in Note 17, “Commitments and Contingencies.”
• For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively.

  During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively. See further discussion in Note 9, “Goodwill and Intangible Assets.”

• In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture's position, finding that its mechanic's lien did not have priority over the senior lenders. As a result of the court's decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million or $0.18 per share on an after-tax basis in the third quarter of 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) In Millions	Total	Common Stock Activities [Member]	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Total URS Stockholders' Equity	Noncontrolling Interests
Beginning Balances at Jan. 01, 2010	$ 3,950.5	$ 0.9	$ (83.8)	$ 2,884.9	$ (49.2)	$ 1,153.1	$ 3,905.9	$ 44.6
Beginning Balances (in shares) at Jan. 01, 2010		84.0
Employee stock purchases and exercises of stock options	11.3			11.3			11.3
Employee stock purchases and exercises of stock options (in shares)		0.3
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards	(17.1)			(17.1)			(17.1)
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards (in shares)		(0.3)
Stock-based compensation	44.0			44.0			44.0
Stock-based compensation (in shares)		0.9
Excess tax benefits from stock-based compensation	1.2			1.2			1.2
Foreign currency translation adjustments, net of tax	8.8				8.8		8.8
Pension and post-retirement related adjustments, net of tax	(0.7)				(0.7)		(0.7)
Interest rate swap, net of tax	4.2				4.2		4.2
Repurchases of common stock	(128.3)		(128.3)				(128.3)
Repurchases of common stock (in shares)		(3.0)
Newly consolidated joint ventures	41.0							41.0
Distributions to noncontrolling interests	(107.2)							(107.2)
Contributions and advances from noncontrolling interests	7.6							7.6
Other transactions with noncontrolling interests	(0.5)							(0.5)
Net income (loss) including noncontrolling interests	386.2					287.9	287.9	98.3
Ending Balances at Dec. 31, 2010	4,201.0	0.9	(212.1)	2,924.3	(36.9)	1,441.0	4,117.2	83.8
Ending Balances (in shares) at Dec. 31, 2010		81.9
Employee stock purchases and exercises of stock options	11.7			11.7			11.7
Employee stock purchases and exercises of stock options (in shares)		0.3
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards	(15.3)			(15.3)			(15.3)
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards (in shares)		(0.3)
Stock-based compensation	45.3			45.3			45.3
Stock-based compensation (in shares)		0.8
Excess tax benefits from stock-based compensation	0.8			0.8			0.8
Foreign currency translation adjustments, net of tax	(11.2)				(11.2)		(11.2)
Pension and post-retirement related adjustments, net of tax	(62.7)				(62.7)		(62.7)
Repurchases of common stock	(242.8)		(242.8)				(242.8)
Repurchases of common stock (in shares)		(6.0)
Distributions to noncontrolling interests	(111.7)							(111.7)
Contributions and advances from noncontrolling interests	6.9							6.9
Other transactions with noncontrolling interests	(0.3)							(0.3)
Net income (loss) including noncontrolling interests	(337.3)					(465.8)	(465.8)	128.5
Ending Balances at Dec. 30, 2011	3,484.4	0.9	(454.9)	2,966.8	(110.8)	975.2	3,377.2	107.2
Ending Balances (in shares) at Dec. 30, 2011	76.7	76.7
Employee stock purchases and exercises of stock options	8.9			8.9			8.9
Employee stock purchases and exercises of stock options (in shares)		0.3
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards	(15.5)			(15.5)			(15.5)
Stock repurchased in connection with exercises of stock options and vesting of restricted stock awards (in shares)		(0.4)
Stock-based compensation	43.6			43.6			43.6
Stock-based compensation (in shares)		1.2
Excess tax benefits from stock-based compensation	0.1			0.1			0.1
Foreign currency translation adjustments, net of tax	24.8				24.8		24.8
Pension and post-retirement related adjustments, net of tax	(26.6)				(26.6)		(26.6)
Loss on derivative instruments, net of tax	(0.6)				(0.6)		(0.6)
Repurchases of common stock	(40.0)		(40.0)				(40.0)
Repurchases of common stock (in shares)		(1.0)
Cash dividends declared	(61.4)					(61.4)	(61.4)
Noncontrolling interests from an acquisition	2.0							2.0
Distributions to noncontrolling interests	(83.8)							(83.8)
Contributions and advances from noncontrolling interests	1.2							1.2
Other transactions with noncontrolling interests	0.1							0.1
Net income (loss) including noncontrolling interests	425.8					310.6	310.6	115.2
Ending Balances at Dec. 28, 2012	$ 3,763.0	$ 0.9	$ (494.9)	$ 3,003.9	$ (113.2)	$ 1,224.4	$ 3,621.1	$ 141.9
Ending Balances (in shares) at Dec. 28, 2012	76.8	76.8

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INCOME TAXES (DETAILS 2) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2012	Sep. 28, 2012	Jun. 29, 2012	Mar. 30, 2012	Dec. 30, 2011	Sep. 30, 2011	Jul. 01, 2011	Apr. 01, 2011	Dec. 28, 2012	Dec. 30, 2011	Dec. 31, 2010
Current components of income tax expense:
Federal									$ 152.3	$ 78.3	$ 85.9
State and local									35.9	17.6	19.0
Foreign									18.3	19.2	11.8
Subtotal									206.5	115.1	116.7
Deferred components of income tax expense:
Federal									(10.5)	(19.0)	8.5
State and local									1.0	(0.8)	3.9
Foreign									(7.1)	(3.5)	(1.5)
Subtotal									(16.6)	(23.3)	10.9
Total income tax expense (benefit)	34.7	66.1	40.5	48.6	46.8	(39.5)	45.5	39.0	189.9	91.8	127.6
Geographic areas income before income taxes [Abstract]
Income before income taxes: United States									534.9	(316.2)	430.9
Income before income taxes: International									80.8	70.7	82.9
Total income (loss) before income taxes and noncontrolling interests									615.7	(245.5)	513.8
Current deferred tax assets (liabilities):
Receivable allowances	6.7				4.5				6.7	4.5	6.1
Net operating losses	1.6				1.2				1.6	1.2	3.9
Estimated loss accruals	43.6				39.8				43.6	39.8	38.7
State income taxes	0.1				2.9				0.1	2.9	3.2
Payroll-related accruals	89.8				85.0				89.8	85.0	74.4
Self-insurance reserves	8.8				6.8				8.8	6.8	4.9
Unearned revenue	3.1				(2.0)				3.1	(2.0)	0.1
Deferred compensation and post-retirement benefit accruals	3.2				3.1				3.2	3.1	3.7
Other	4.2				2.0				4.2	2.0	1.4
Gross current deferred tax assets	161.1				143.3				161.1	143.3	136.4
Valuation allowance	(10.5)				(8.1)				(10.5)	(8.1)	(7.4)
Current deferred tax assets	150.6				135.2				150.6	135.2	129.0
Revenue on retained accounts receivable	(17.0)				(7.0)				(17.0)	(7.0)	(5.4)
Timing of income from partnerships and limited liability companies	(25.6)				(13.8)				(25.6)	(13.8)	8.2
Costs and accrued earnings in excess of billings on contracts	(35.1)				(40.7)				(35.1)	(40.7)	(37.4)
Prepaid expenses	(5.3)				(10.7)				(5.3)	(10.7)	(11.1)
Current deferred tax liabilities	(83.0)				(72.2)				(83.0)	(72.2)	(45.7)
Net current deferred tax assets	67.6				63.0				67.6	63.0	83.3
Non-Current deferred tax assets (liabilities):
Deferred compensation and post-retirement benefit accruals	144.6				111.9				144.6	111.9	104.0
Self-insurance reserves	29.4				33.5				29.4	33.5	35.0
Property, plant and equipment	2.0				9.2				2.0	9.2	3.3
Foreign tax credits	7.1				7.1				7.1	7.1	7.1
Income tax credits	8.0				3.4				8.0	3.4	3.2
Rental accruals	21.6				16.3				21.6	16.3	9.2
Net operating losses	130.6				107.2				130.6	107.2	108.0
Other reserves	18.8				14.7				18.8	14.7	25.3
Gross non-current deferred tax assets	362.1				303.3				362.1	303.3	295.1
Valuation allowance	(127.1)				(115.9)				(127.1)	(115.9)	(96.7)
Net non-current deferred tax assets	235.0				187.4				235.0	187.4	198.4
Goodwill and other intangibles	(348.1)				(273.0)				(348.1)	(273.0)	(343.6)
Foreign subsidiary outside basis difference	(2.0)				(0.7)				(2.0)	(0.7)	(0.3)
Domestic subsidiary outside basis difference	(144.8)				(144.8)				(144.8)	(144.8)	(145.5)
Market value adjustment on acquired assets	(4.4)				(4.4)				(4.4)	(4.4)	(4.4)
Property, plant and equipment	(64.0)				(41.0)				(64.0)	(41.0)	(31.5)
Non-current deferred tax liabilities	(563.3)				(463.9)				(563.3)	(463.9)	(525.3)
Net non-current deferred tax liabilities	(328.3)				(276.5)				(328.3)	(276.5)	(326.9)
Reconciliation of the beginning and ending amount of unrecognized tax benefits
Unrecognized tax benefits beginning balance				16.7				21.5	16.7	21.5	25.2
Gross increase - tax positions in prior years									1.2	2.7	1.1
Gross decrease - tax positions in prior years									(1.2)	(3.6)	(1.5)
Gross increase - current period tax positions									1.2		1.4
Settlements									(0.2)	(0.2)	(0.2)
Lapse of statute of limitations									(2.4)	(3.7)	(5.3)
Unrecognized tax benefits acquired in current year									0.1		0.8
Unrecognized tax benefits ending balance	15.4				16.7				15.4	16.7	21.5
Unrecognized tax benefits (Textuals) [Abstract]
Unrecognized tax benefits that would impact effective tax rate	11.4								11.4
Unrecognized tax benefits in interest expense and penalties									(1.4)	(1.4)	1.5
Accrued unrecognized tax benefits in interest expense and penalties	5.3				6.7				5.3	6.7	8.1
Reasonably possible change in unrecognized tax benefit	$ 2.7								$ 2.7

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GOODWILL (TABLES)

12 Months Ended

Dec. 28, 2012

Goodwill and intangible assets disclosure [Abstract]

Changes in goodwill allocated to reportable segments [Table Text Block]

(In millions)			Goodwill Balance as of December 31, 2010		Acquisitions		Goodwill Impairment		Other Adjustments (1)		Goodwill Balance as of December 30, 2011
Infrastructure & Environment Operating Segment			$	754.6	$	12.2	$	—	$	(8.7)	$	758.1
Federal Services Operating Segment				854.8		202.1		(348.3)		—		708.6
Within the Energy & Construction Operating Segment:
	Global Management and Operations Services Group			565.4		—		(160.0)		—		405.4
	Civil Construction & Mining Group			293.9		—		(81.6)		—		212.3
	Industrial/Process Group			189.4		—		(71.4)		—		118.0
	Power Group			735.1		—		(164.5)		—		570.6
		Total		1,783.8		—		(477.5)		—		1,306.3
Total			$	3,393.2	$	214.3	$	(825.8)	$	(8.7)	$	2,773.0
(In millions)			Goodwill Balance as of December 30, 2011		Acquisitions		Goodwill Impairment		Other Adjustments (1)		Goodwill Balance as of December 28, 2012
Infrastructure & Environment Operating Segment			$	758.1	$	—	$	—	$	14.8	$	772.9
Federal Services Operating Segment				708.6		—		—		1.7		710.3
Within the Energy & Construction Operating Segment:
	Global Management and Operations Services Group			405.4		—		—		—		405.4
	Civil Construction & Mining Group			212.3		—		—		—		212.3
	Industrial/Process Group			118.0		—		—		—		118.0
	Power Group			570.6		—		—		—		570.6
		Total		1,306.3		—		—		—		1,306.3
Oil & Gas Operating Segment				—		456.3		—		1.3		457.6
Total			$	2,773.0	$	456.3	$	—	$	17.8	$	3,247.1

Cost and accumulated amortization of intangible assets [Table Text Block]

(In millions)		Customer Relationships, Contracts, and Backlog		Trade Name		Favorable Leases and Other		Total
Balance as of December 31, 2010		$	487.3	$	24.9	$	1.9	$	514.1
	Acquisitions		62.9		2.5		4.7		70.1
	Amortization expense		(56.8)		(1.6)		(2.2)		(60.6)
	Other additions and foreign currency translation		(2.3)		(0.2)		0.9		(1.6)
Balance as of December 30, 2011			491.1		25.6		5.3		522.0
	Acquisitions		163.0		93.5		9.8		266.3
	Amortization expense		(93.9)		(4.8)		(2.5)		(101.2)
	Other additions and foreign currency translation		3.3		1.7		0.1		5.1
Balance as of December 28, 2012		$	563.5	$	116.0	$	12.7	$	692.2
Estimated useful lives			1 - 16 years		1 - 40 years (1)		1 - 13 years

• During the fourth quarter of2011, we revised the estimated useful life of the Scott Wilson trade name from 25 years to 12 years because we decided to reduce the use of the trade name.The estimated useful life of the Flint trade name in the U.S. and Canada is 40 years.

Estimated future amortization expense of intangible assets [Table Text Block]

(In millions)	Customer Relationships, Contracts, and Backlog		Trade Name		Favorable Leases and Other		Total
2013	$	101.3	$	5.6	$	1.8	$	108.7
2014		89.2		4.6		1.5		95.3
2015		78.1		4.2		1.1		83.4
2016		72.7		4.3		1.1		78.1
2017		67.3		4.3		0.5		72.1
Thereafter		154.9		93.0		6.7		254.6
	$	563.5	$	116.0	$	12.7	$	692.2

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COMMITMENTS AND CONTINGENCIES (DETAILS) In Millions, unless otherwise specified	3 Months Ended			12 Months Ended
	Dec. 30, 2011 USD ($)		Jul. 01, 2011 USD ($)	Dec. 28, 2012 USD ($)	Dec. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 28, 2012 USAID Egyptian Projects [Member] USD ($)	Dec. 28, 2012 New Orleans Levee Failure Class Action Litigation [Member] USD ($) lawsuits	Dec. 28, 2012 Canadian Pipeline Contract [Member] CAD	Dec. 28, 2012 UK Joint Venture [Member]	Dec. 28, 2012 DOE Deactivation, Demolition and Removal Project [Member] USD ($)	Dec. 28, 2012 Bolivian Mine Services Agreement [Member] USD ($)	Dec. 28, 2012 Indemnification of Joint Venture Partner [Member] USD ($)	Dec. 28, 2012 Letter of Credit of Consolidated Joint Venture [Member] USD ($)	Dec. 28, 2012 Guarantee of Foreign Credit Facilities and Bank Guarantee Lines [Member] USD ($)
Guarantee Obligations [Line Items]
Guarantee obligations current carrying value													$ 25.0	$ 0.9
Bank guarantee outstanding under foreign credit facilities and other banking arrangements															36.3
Lease Obligations [Abstract]
Rental expense				210.0	188.5	192.5
Description of operating lease arrangements				Some of the operating leases are subject to renewal options and escalation based upon property taxes and operating expenses.
Loss Contingencies [Line Items]
Loss contingency allegations							In November 2004, the federal government filed an action in the United States District Court for the District of Idaho against WGI Delaware, Contrack International, Inc., and MISR Sons Development S.A.E., an Egyptian construction company, asserting violations under the Federal False Claims Act, the Federal Foreign Assistance Act of 1961, as well as common law theories of payment by mistake and unjust enrichment.	Plaintiffs allege that defendants were negligent in their design, construction and/or maintenance of the New Orleans levees. Specifically, as to WGI Ohio, plaintiffs allege that work WGI Ohio performed adjacent to the Industrial Canal damaged the levee and floodwall, causing or contributing to breaches and flooding.	In January 2010, a pipeline owner filed an action in the Court of Queen’s Bench of Alberta, Canada against Flint, a company acquired by us in May 2012, as well as against a number of other defendants, alleging that the defendants negligently provided pipe coating and insulation system services, engineering, design services, construction services, and other work, causing damage to and abandonment of the line. The pipeline owner alleges it has suffered approximately C$85.0 million in damages in connection with the abandonment and replacement of the pipeline.			The mine owner disputed the fair market value of mining equipment it was required to repurchase under the terms of the mine services agreement. Subsequently, on November 16, 2010, Washington Group Bolivia received a formal claim asserting breaches of contractual obligations and warranties, including the failure to adhere to the requisite professional standard of care while performing the mine services agreement.
Loss contingency damages sought							The federal government seeks damages and civil penalties for violations of the statutes as well as a refund of the approximately $373.0 million paid to WGI Delaware under the specified contracts.	Fifty-nine personal injury and property damage class action lawsuits were filed in Louisiana State and federal court against several defendants, including WGI Ohio, seeking $200.0 billion in damages plus attorneys’ fees and costs. Plaintiffs are residents and property owners who claim to have incurred damages from the breach and failure of the hurricane protection levees and floodwalls in the wake of Hurricane Katrina. All 59 lawsuits were pleaded as class actions but none have yet been certified as class actions. Along with WGI Ohio, the U.S. Army Corps of Engineers, the Board for the Orleans Levee District, and its insurer, St. Paul Fire and Marine Insurance Company were also named as defendants. At this time WGI Ohio and the Army Corps of Engineers are the remaining defendants. These 59 lawsuits, along with other hurricane-related cases not involving WGI Ohio, were consolidated in the United States District Court for the Eastern District of Louisiana (“District Court”).	approximately C$85.0 million in damages			On June 17, 2011, Washington Group Bolivia received a formal demand for arbitration pursuant to the Rules of Arbitration of the International Chamber of Commerce asserting claims up to $52.6 million.
Loss contingency actions taken by court arbitrator or mediator							On April 24, 2012, the Bankruptcy Court ruled that the bulk of the federal government’s claims under the False Claims and the Federal Foreign Assistance Acts are not barred. On November 7, 2012, WGI Delaware appealed the Bankruptcy Court’s decision to the Ninth Circuit Bankruptcy Appellate Panel.	WGI Ohio filed a motion for summary judgment, seeking dismissal on grounds that government contractors are immune from liability. On December 15, 2008, the District Court granted WGI Ohio’s motion for summary judgment, but several plaintiffs appealed that decision to the United States Fifth Circuit Court of Appeals on April 27, 2009. On September 14, 2010, the Court of Appeals reversed the District Court’s summary judgment decision and WGI Ohio’s dismissal, and remanded the case back to the District Court for further litigation. On August 1, 2011, the District Court decided that the government contractor immunity defense would not be available to WGI Ohio at trial, but would be an issue for appeal. Five of the cases were tried in District Court from September 12, 2012 through October 3, 2012. A decision is expected in 2013.
Loss contingency actions taken by plaintiff and defendant							USAID Egyptian Projects: In March 2003, Washington Group International, Inc., a Delaware company, (“WGI Delaware”), a wholly owned subsidiary, was notified by the Department of Justice that the federal government was considering civil litigation against WGI Delaware for potential violations of the U.S. Agency for International Development (“USAID”) source, origin, and nationality regulations in connection with five of WGI Delaware’s USAID-financed host-country projects located in Egypt beginning in the early 1990s. In November 2004, the federal government filed an action in the United States District Court for the District of Idaho against WGI Delaware, Contrack International, Inc., and MISR Sons Development S.A.E., an Egyptian construction company, asserting violations under the Federal False Claims Act, the Federal Foreign Assistance Act of 1961, as well as common law theories of payment by mistake and unjust enrichment. The federal government seeks damages and civil penalties for violations of the statutes as well as a refund of the approximately $373.0 million paid to WGI Delaware under the specified contracts. WGI Delaware has denied any liability in the action and contests the federal government’s damage allegations and its entitlement to recovery. All USAID projects under the contracts have been completed and are fully operational. In March 2005, WGI Delaware filed a motion in Idaho District Court to dismiss the federal government’s claims or to stay the Idaho action and also a motion in Bankruptcy Court in Nevada to dismiss the government’s claims for failure to give appropriate notice or otherwise preserve their claims. In August 2005, the Bankruptcy Court ruled that all federal government claims were barred. The federal government appealed the Bankruptcy Court's order to the United States District Court for the District of Nevada. In March 2006, the Idaho District Court stayed that action during the pendency of the federal government's appeal of the Bankruptcy Court's ruling. In December 2006, the Nevada District Court reversed the Bankruptcy Court’s order and remanded the matter back to the Bankruptcy Court for further proceedings. WGI Delaware renewed its motion in Bankruptcy Court, and in November 2008, the Bankruptcy Court ruled that the federal government’s common law claims of unjust enrichment and payment by mistake are barred, and could no longer be pursued. On April 24, 2012, the Bankruptcy Court ruled that the bulk of the federal government’s claims under the False Claims and the Federal Foreign Assistance Acts are not barred. On November 7, 2012, WGI Delaware appealed the Bankruptcy Court’s decision to the Ninth Circuit Bankruptcy Appellate Panel. WGI Delaware intends to continue to defend this matter vigorously; however, WGI Delaware cannot provide assurance that it will be successful in these efforts. The potential range of loss and the resolution of these matters cannot be determined at this time primarily due to the very limited factual record that exists in light of our limited ability to evaluate discovery that has been conducted so far at this early stage of the Idaho litigation; the fact that the matter involves unique and complex bankruptcy, international, and federal regulatory legal issues; the uncertainty concerning legal theories and their potential resolution by the courts; and the duration of this matter, as well as a number of additional factors.	New Orleans Levee Failure Class Action Litigation: From July 1999 through May 2005, Washington Group International, Inc., an Ohio company (“WGI Ohio”), a wholly owned subsidiary acquired by us on November 15, 2007, performed demolition, site preparation, and environmental remediation services for the U.S. Army Corps of Engineers on the east bank of the Inner Harbor Navigation Canal (the “Industrial Canal”) in New Orleans, Louisiana. On August 29, 2005, Hurricane Katrina devastated New Orleans. The storm surge created by the hurricane overtopped the Industrial Canal levee and floodwall, flooding the Lower Ninth Ward and other parts of the city. Fifty-nine personal injury and property damage class action lawsuits were filed in Louisiana State and federal court against several defendants, including WGI Ohio, seeking $200.0 billion in damages plus attorneys’ fees and costs. Plaintiffs are residents and property owners who claim to have incurred damages from the breach and failure of the hurricane protection levees and floodwalls in the wake of Hurricane Katrina. All 59 lawsuits were pleaded as class actions but none have yet been certified as class actions. Along with WGI Ohio, the U.S. Army Corps of Engineers, the Board for the Orleans Levee District, and its insurer, St. Paul Fire and Marine Insurance Company were also named as defendants. At this time WGI Ohio and the Army Corps of Engineers are the remaining defendants. These 59 lawsuits, along with other hurricane-related cases not involving WGI Ohio, were consolidated in the United States District Court for the Eastern District of Louisiana (“District Court”). Plaintiffs allege that defendants were negligent in their design, construction and/or maintenance of the New Orleans levees. Specifically, as to WGI Ohio, plaintiffs allege that work WGI Ohio performed adjacent to the Industrial Canal damaged the levee and floodwall, causing or contributing to breaches and flooding. WGI Ohio did not design, construct, repair or maintain any of the levees or the floodwalls that failed during or after Hurricane Katrina. Rather, WGI Ohio performed work adjacent to the Industrial Canal as a contractor for the federal government. WGI Ohio filed a motion for summary judgment, seeking dismissal on grounds that government contractors are immune from liability. On December 15, 2008, the District Court granted WGI Ohio’s motion for summary judgment, but several plaintiffs appealed that decision to the United States Fifth Circuit Court of Appeals on April 27, 2009. On September 14, 2010, the Court of Appeals reversed the District Court’s summary judgment decision and WGI Ohio’s dismissal, and remanded the case back to the District Court for further litigation. On August 1, 2011, the District Court decided that the government contractor immunity defense would not be available to WGI Ohio at trial, but would be an issue for appeal. Five of the cases were tried in District Court from September 12, 2012 through October 3, 2012. A decision is expected in 2013. WGI Ohio intends to continue to defend these matters vigorously; however, WGI Ohio cannot provide assurance that it will be successful in these efforts. The potential range of loss and the resolution of these matters cannot be determined at this time primarily due to the unknown number of individual plaintiffs who are actually asserting claims against WGI Ohio; the uncertainty regarding the nature and amount of each individual plaintiff’s damage claims; uncertainty concerning legal theories and factual bases that plaintiffs may present and their resolution by courts or regulators; and uncertainty about the plaintiffs’ claims, if any, that might survive certain key motions of our affiliate, as well as a number of additional factors.	Canadian Pipeline Contract: In January 2010, a pipeline owner filed an action in the Court of Queen’s Bench of Alberta, Canada against Flint, a company acquired by us in May 2012, as well as against a number of other defendants, alleging that the defendants negligently provided pipe coating and insulation system services, engineering, design services, construction services, and other work, causing damage to and abandonment of the line. The pipeline owner alleges it has suffered approximately C$85.0 million in damages in connection with the abandonment and replacement of the pipeline. Flint was the construction contractor on the pipeline project. Other defendants were responsible for engineering and design-services and for specifying and providing the actual pipe, insulation and coating materials used in the line. In January 2011, the pipeline owner served a Statement of Claim on Flint and, in September 2011, Flint filed a Statement of Defense denying that the damages to the coating system of the pipeline were caused by any negligence or breach of contract of Flint. Flint believes the damages were caused or contributed to by the negligence of one or more of the codefendants and/or by the negligent operation of the pipeline owner. Flint intends to continue to defend this matter vigorously; however, it cannot provide assurance that it will be successful, in whole or in part, in these efforts. The potential range of loss and the resolution of this matter cannot be determined at this time primarily due to the early stage of the discovery; the substantial uncertainty regarding the actual cause of the damage to or loss of the line; the nature and amount of each individual damage claim against the various defendants; and the uncertainty concerning legal theories and factual bases that customer may present against all or some of the defendants.	U.K. Joint Venture: On April 12, 2010, one of our U.K. joint ventures sent several bags of low level non-exempt radioactive waste to a waste disposal facility that was not licensed to handle such waste. On November 15, 2012, the U.K. Environment Agency and the U.K. Department for Transport initiated environmental regulatory proceedings against our U.K. joint venture in the Workington Magistrates’ Court under the U.K. Environmental Permitting Regulations 2010, the Radioactive Substances Act 1993, the Carriage of Dangerous Goods and the use of Transportable Pressure Equipment Regulations 2009. On February 7, 2013, our U.K. joint venture entered a plea of guilty before the Magistrates’ Court and the matter was referred to the Crown Court for sentencing. The potential range of loss and the resolution of this matter cannot be determined at this time primarily due to the fact that the matter involves unique and complex environmental and regulatory legal issues, as well as a number of additional factors.	DOE Deactivation, Demolition, and Removal Project: WGI Ohio executed a cost-reimbursable task order with the DOE in 2007 to provide deactivation, demolition and removal services at a New York State project site that during 2010 experienced contamination and performance issues. In February 2011, WGI Ohio and the DOE executed a Task Order Modification that changed some cost-reimbursable contract provisions to at-risk. The Task Order Modification, including subsequent amendments, requires the DOE to pay all project costs up to $105.9 million, requires WGI Ohio and the DOE to equally share in all project costs incurred from $105.9 to $145.9 million, and requires WGI Ohio to pay all project costs exceeding $145.9 million. In addition, in September 2011, WGI Ohio voluntarily paid a civil penalty related to the contamination incident. Through December 28, 2012, WGI Ohio has incurred total project costs of $216.3 million and has recorded cumulative project losses of $15.1 million. Due to unanticipated requirements and permitting delays by federal and state agencies, as well as delays and related ground stabilization activities caused by Hurricane Irene, WGI Ohio has been required to perform work outside the scope of the Task Order Modification. Based on changes and delays to date, requests for equitable adjustment (“REA”) amounting to $47.1 million and proposals related to the hurricane-caused impacts and other directed changes in the amount of $105.1 million have been submitted to the DOE for approval. WGI Ohio also expects to submit additional REAs of at least $11.0 million to the DOE in 2013. Through December 28, 2012, the DOE authorized an additional $27.2 million of funding primarily related to the hurricane-caused impacts. In early 2013, WGI Ohio submitted several certified claims against the DOE pursuant to the Contracts Disputes Acts seeking recovery of $100.8 million of the above unfunded REA and proposal costs and $4.5 million of fee on the expanded work scope. The final project completion costs are not currently estimable due to continuing delays in permitting, other delays, and approval of a final project plan. WGI Ohio can give no assurance that it will not be obligated to pay some or all of the REAs, non-funded hurricane-caused impacts, the other directed changes, and additional project completion costs, which would negatively impact our future results of operations.	Bolivian Mine Services Agreement: In 2009, a mine service agreement performed by one of our wholly owned subsidiaries, Washington Group Bolivia, was unilaterally terminated for convenience by the mine owner. The mine owner disputed the fair market value of mining equipment it was required to repurchase under the terms of the mine services agreement. Subsequently, on November 16, 2010, Washington Group Bolivia received a formal claim asserting breaches of contractual obligations and warranties, including the failure to adhere to the requisite professional standard of care while performing the mine services agreement. On June 17, 2011, Washington Group Bolivia received a formal demand for arbitration pursuant to the Rules of Arbitration of the International Chamber of Commerce asserting claims up to $52.6 million. Washington Group Bolivia brought a $50 million counterclaim on August 3, 2012 against the mine owner asserting claims of wrongful termination and lost productivity. Arbitration on the mine owner’s claims and Washington Group Bolivia’s counterclaims commenced and concluded in December 2012. In the course of the arbitration proceedings, the mine owner has reduced its claims to approximately $32.2 million, while Washington Group Bolivia has refined its counterclaim amount to not more than $62.9 million. Washington Group Bolivia intends to continue to defend this matter vigorously; however, we cannot provide assurance that we will be successful in these efforts. While Washington Group Bolivia believes that the mine owner’s claims are largely without merit, the potential range of loss and the resolution of these matters cannot be determined at this time due to a number of factors, including the uncertainty of how the arbitration tribunal will apply the multiple legal theories and factual bases for the parties’ respective claims and defenses and the added complexity that comes from the fact that the parties, project location and applicable law span multiple countries and jurisdictions.  Washington Group Bolivia brought a $50 million counterclaim on August 3, 2012 against the mine owner asserting claims of wrongful termination and lost productivity. Arbitration on the mine owner’s claims and Washington Group Bolivia’s counterclaims commenced and concluded in December 2012. In the course of the arbitration proceedings, the mine owner has reduced its claims to approximately $32.2 million, while Washington Group Bolivia has refined its counterclaim amount to not more than $62.9 million.
Litigation settlement gross			9.5
Asset impairment charge for an unconsolidated joint venture						25.0
Cumulative project losses											15.1
Total damages against all defendants claimed in the legal matter							373.0	200,000.0	85.0			52.6
Amount of counterclaim												50
Task order modification costs threshold below to be paid by customer											105.9
Task order modification costs to be paid equally by customer and company - range minimum											105.9
Task order modification costs to be paid equally by customer and company - range maximum											145.9
Task order modification costs threshold above to be paid by Company											145.9
Requests for equitable adjustment											47.1
Additional requests for equitable adjustment expected to be submitted											11.0
Project reimbursement request arising from acts of nature											105.1
Total project costs											216.3
Loss contingency, lawsuits filed, number								59
Authorized Project Reimbursement Request Arising From Acts Of Nature											27.2
Loss contingency revised value of damages sought												32.2
Maximum amount of counterclaim												62.9
Claim for unfunded requests for equitable adjustment (REA)											100.8
Claim for fee											4.5
Obligations under non-cancelable operating lease agreements [Abstract]
First year				224.9
Second year				151.7
Third year				116.0
Fourth year				86.6
Fifth year				58.9
Thereafter				162.9
Total minimum lease payments				801.0
Restructuring Charges [Abstract]
Restructuring costs	5.5	[1]			5.5	10.6
Payments for restructuring					12.9
Restructuring Reserves [Abstract]
Restructuring reserve	$ 3.8				$ 3.8	$ 11.6

[1] For the year ended December 30, 2011, we recorded restructuring costs resulting from the integration of Scott Wilson into our existing U.K. and European business and necessary responses to reductions in market opportunities in Europe. See further discussion in Note 17, “Commitments and Contingencies.”

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STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

STOCKHOLDERS' EQUITY

Declaration Date	Dividend Per Share		Record Date		Total Estimated Amount		Payment Date
(In millions, except per share data)
February 24, 2012	$	0.20		March 16, 2012	$	15.2		April 6, 2012
May 4, 2012	$	0.20		June 15, 2012	$	15.4		July 6, 2012
August 3, 2012	$	0.20		September 14, 2012	$	15.4		October 5, 2012
November 2, 2012	$	0.20		December 14, 2012	$	15.4		January 4, 2013

NOTE 15. STOCKHOLDERS' EQUITY

Dividend Program

On February 24, 2012, our Board of Directors approved the initiation of a regular quarterly cash dividend program.Our Board of Directors declared the following dividends:

Declaration Date	Dividend Per Share		Record Date		Total Estimated Amount		Payment Date
(In millions, except per share data)
February 24, 2012	$	0.20		March 16, 2012	$	15.2		April 6, 2012
May 4, 2012	$	0.20		June 15, 2012	$	15.4		July 6, 2012
August 3, 2012	$	0.20		September 14, 2012	$	15.4		October 5, 2012
November 2, 2012	$	0.20		December 14, 2012	$	15.4		January 4, 2013

Equity Incentive Plans

As of December 28, 2012, approximately 3.5 million shares had been issued as restricted stock awards and 0.5million shares of restricted stock units wereissuable upon the vesting under our 2008 Equity Incentive Plan (the “2008 Plan”). In addition, approximately 1.0 million shares remained reserved for future grant under the 2008 Plan.

Stock Repurchase Program

On February 25, 2011, our Board of Directors authorized an increase in the number of our common shares that we couldrepurchase in fiscal year 2011 from 3.0 million shares to 8.0 million shares to be effected through open market purchases or privately negotiated transactions as permitted by securities laws and other legal and contractual requirements, and subject to market conditions and other factors. For fiscal years 2012, 2013 and 2014, the authorized shares under the repurchase program are3.0 million shares, plus the number of shares equal to the difference between the number of shares authorized to be repurchased in the prior year and the actual number of shares repurchased during the prior year, not to exceed 6.0 million shares in aggregate. The repurchase program will expire at the end of our 2014 fiscal year. The Board of Directors may modify, suspend, extend or terminate the program at any time.

The following table summarizes our stock repurchase activities for the years ended December 28, 2012, December 30, 2011, and December 31, 2010:

	Year Ended
	December 28,		December 30,		December 31,
(In millions, except average price paid per share)	2012		2011		2010
Shares of common stock repurchased		1.0		6.0		3.0
Average price paid per share	$	40.00	$	40.47	$	42.75
Cost of common stock repurchased	$	40.0	$	242.8	$	128.3

Stock-Based Compensation

We recognize stock-based compensation expense, net of estimated forfeitures, over the vesting periods in “General and administrative expenses” and “Cost of revenues” in our Consolidated Statements of Operations.

The following table presents our stock-based compensation expense related to restricted stock awards and units, our employee stock purchase plan and the relatedincome tax benefits recognized for the years ended December 28, 2012,December 30, 2011, and December 31, 2010:

			Year Ended
			December 28,		December 30,		December 31,
(In millions)			2012		2011		2010
Stock-based compensation expense:
	Restricted stock awards and units		$	43.1	$	44.8	$	43.6
	Employee stock purchase plan			0.5		0.5		0.4
		Stock-based compensation expense	$	43.6	$	45.3	$	44.0
Stock-based compensation expense included in:
	Cost of revenues		$	33.2	$	35.1	$	34.0
	General and administrative expenses			10.4		10.2		10.0
		Stock-based compensation expense	$	43.6	$	45.3	$	44.0
Total income tax benefits recognized in our net income related to stock-based compensation expense			$	16.0	$	17.3	$	16.9

Employee Stock Purchase Plan

Our Employee Stock Purchase Plan (“ESPP”) allows qualifying employees to purchase shares of our common stock through payroll deductions of up to 10% of their compensation, subject to Internal Revenue Code limitations, at a price of 95% of the fair market value as of the end of each of the six-month offering periods. The offering periods commence on January 1 and July 1 of each year.

For the years ended December 28, 2012, December 30, 2011, and December 31, 2010, employees participating in our ESPP purchased approximately 0.1 million shares, 0.2 millionshares, and 0.2 million shares, respectively.Cash proceeds generated from employee stock option exercises and purchases by employees under our ESPP for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 were $8.9 million, $11.7 million, and $11.3 million, respectively.

Restricted Stock Awards and Units

Restricted stock awards and units generally vest over fouryears. Vesting of some awards is subject to both service requirements and performance conditions. Currently outstanding restricted stock awards and units with a performance condition vest upon the achievement of an annual net income target, established in the first quarter of the fiscal year preceding the vesting date. Our awards are measured based on the stock price on the date that all of the key terms and conditions related to the award are known. Restricted stock awards and units are expensed on a straight-line basis over their respective vesting periods subject to the probability of meeting performance and/or service requirements.

As of December 28, 2012, we had estimated unrecognized stock-based compensation expense of $82.6 million related to nonvested restricted stock awards and units. This expense is expected to be recognized over a weighted-average period of 2.6 years. The following table summarizes the total fair value of vested shares, according to their contractual terms, and the grant date fair value of restricted stock awards and units granted during the years ended December 28, 2012 and December 30, 2011:

	December 28,		December 30,
(In millions)	2012		2011
Fair value of shares vested	$	42.0	$	41.8
Grant date fair value of restricted stock awards and units granted	$	54.3	$	42.1

A summary of the status of and changes in our nonvested restricted stock awards and units, according to their contractual terms, as of and for the year ended December 28, 2012, is presented below:

		Year Ended
		December 28, 2012
			Weighted-
		Shares	Average Grant
		(in millions)	Date Fair Value
Nonvested at December 30, 2011		2.4	$	42.86
	Granted	1.4	$	36.79
	Vested	(1.0)	$	41.69
	Forfeited	(0.1)	$	42.44
Nonvested at December 28, 2012		2.7	$	40.03

Stock Options

A summary of the status and changes of the stock options, according to their contractual terms, is presented below:

							Weighted-
							Average
					Weighted-		Remaining	Aggregate
		Options			Average		Contractual	Intrinsic Value
		(in millions)			Exercise Price		Term (in years)	(in millions)
Outstanding and exercisable at January 1, 2010			0.7		$	22.99	3.46	$	16.5
	Exercised		(0.1)		$	21.03
	Forfeited/expired/cancelled		—	†	$	18.13
Outstanding and exercisable at December 31, 2010			0.6		$	23.38	2.62	$	11.7
	Exercised		(0.1)		$	22.80
	Forfeited/expired/cancelled		—	†	$	22.30
Outstanding and exercisable at December 30, 2011			0.5		$	23.55	1.83	$	5.8
	Exercised		(0.2)		$	22.29
	Forfeited/expired/cancelled		—	†	$	24.36
Outstanding and exercisable at December 28, 2012			0.3		$	24.28	1.27	$	4.5

†Represents fewer than fifty thousand shares.

The aggregate intrinsic value as of December 28, 2012in the preceding table represents the total pre-tax intrinsic value, based on our closing market price of $38.71, which would have been received by the option holders had all option holders exercised their options on that date.

For the years ended December 28, 2012,December 30, 2011and December 31, 2010, the aggregate intrinsic value of stock options exercised, determined as of the date of option exercise, was $2.9 million, $2.5 million and $3.0 million, respectively. Since all of our stock option awards were fully vested in fiscal year 2008, we did not have any stock-based compensation expense related to stock option awards or any unrecognized related expense.

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INDEBTEDNESS (TABLES)

12 Months Ended

Dec. 28, 2012

Capital leases by maturity [Abstract]

Maturities of capital leases [Table Text Block]

(In millions)		Capital Leases
Less than one year		$	29.9
Second year			11.7
Third year			9.6
Fourth year			7.6
Fifth year			3.5
	Total minimum lease payments		62.3
Less: amounts representing interest			3.1
	Present value of net minimum lease payments	$	59.2

Debt disclosure [Abstract]

Schedule of debt [Table Text Block]

		December 28,		December 30,
(In millions)		2012		2011
Term loan, net of debt issuance costs		$	666.3	$	695.1
3.85% Senior Notes (net of discount)			399.5		—
5.00% Senior Notes (net of discount)			599.5		—
7.50% Canadian Notes (including premium)			203.8		—
Revolving line of credit			100.5		23.0
Other indebtedness			94.7		80.4
	Total indebtedness		2,064.3		798.5
Less:
Current portion of long-term debt			71.8		61.5
	Long-term debt	$	1,992.5	$	737.0

Maturities of long-term debt [Abstract]

Maturities of long-term debt [Table Text Block]

(In millions)
Less than one year		$	43.4
Second year			60.1
Third year			71.8
Fourth year			626.8
Fifth year			399.8
Thereafter			803.2
	Total	$	2,005.1

Revolving line of credit [Abstract]

Line of credit facility [Table Text Block]

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
Effective average interest rates paid on the revolving line of credit		1.9	%		1.3	%		3.0	%
Average daily revolving line of credit balances	$	139.5		$	25.9		$	0.3
Maximum amounts outstanding at any point during the year	$	420.0		$	104.6		$	12.1

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
Effective average interest rates paid on the revolving line of credit		1.9	%		1.3	%		3.0	%
Average daily revolving line of credit balances	$	139.5		$	25.9		$	0.3
Maximum amounts outstanding at any point during the year	$	420.0		$	104.6		$	12.1

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 17. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, we and our affiliates are subject to various contractual disputes, governmental audits and investigations, and legal proceedings alleging, among other things, contractual,tortious or statutory breaches. The final outcomes of these various matters cannot be predicted or estimated with certainty. We are including information regarding the following matters:

• USAID Egyptian Projects: In March 2003, Washington Group International, Inc., a Delaware company, (“WGI Delaware”), a wholly owned subsidiary, was notified by the Department of Justice that the federal government was considering civil litigation against WGI Delawarefor potential violations of the U.S. Agency for International Development (“USAID”) source, origin, and nationality regulations in connection with five of WGI Delaware's USAID-financed host-country projects located in Egypt beginning in the early 1990s. In November 2004, the federal government filed an action in the United States District Court for the District of Idaho against WGI Delaware,Contrack International, Inc., and MISR Sons Development S.A.E., an Egyptian construction company, asserting violations under the Federal False Claims Act, the Federal Foreign Assistance Act of 1961, as well as common law theories of payment by mistake and unjust enrichment.The federal government seeks damages and civil penalties for violations of the statutes as well as a refund of the approximately $373.0 millionpaid to WGI Delawareunder the specified contracts.WGI Delaware has denied any liability in the action and contests the federal government's damage allegations and its entitlement to recovery. All USAID projects under the contracts have been completed and are fully operational.

  In March 2005, WGI Delawarefiled a motion in Idaho District Court to dismiss the federal government's claimsor to stay the Idaho action and also a motion in Bankruptcy Court in Nevada to dismiss the government's claims for failure to give appropriate notice or otherwise preserve their claims. In August 2005, the Bankruptcy Court ruled that all federal government claims were barred. The federal government appealed the Bankruptcy Court's order to the United States District Court for the District of Nevada. In March 2006, the Idaho District Court stayed that action during the pendency of the federal government's appeal of the Bankruptcy Court's ruling. In December 2006, the Nevada District Court reversed the Bankruptcy Court's order and remanded the matter back to the Bankruptcy Court for further proceedings. WGI Delawarerenewed its motion in Bankruptcy Court, and in November 2008, the Bankruptcy Court ruled that the federal government's common law claims of unjust enrichment and payment by mistake are barred, and could no longer be pursued. On April 24, 2012, the Bankruptcy Court ruled that the bulk of the federal government's claims under the False Claims and the Federal Foreign Assistance Acts are not barred. On November 7, 2012, WGI Delaware appealed the Bankruptcy Court's decision to the Ninth Circuit Bankruptcy Appellate Panel.

  WGI Delawareintends to continue to defend this matter vigorously; however, WGI Delawarecannot provide assurance that it will be successful in these efforts. The potential range of loss and the resolution of these matters cannot be determined at this timeprimarily due to the very limited factual record that exists in light of our limited ability to evaluate discovery that has been conducted so far at this early stage of the Idaho litigation; the fact that the matter involves unique and complex bankruptcy, international, and federal regulatory legal issues; the uncertainty concerning legal theories and their potential resolution by the courts; and the duration of this matter, as well as a number of additional factors.

• New Orleans Levee Failure Class Action Litigation: From July 1999 through May 2005, Washington Group International, Inc., an Ohio company (“WGI Ohio”), a wholly owned subsidiary acquired by us on November 15, 2007, performed demolition, site preparation, and environmental remediation services for the U.S. Army Corps of Engineers on the east bank of the Inner Harbor Navigation Canal (the “Industrial Canal”) in New Orleans, Louisiana. On August 29, 2005, Hurricane Katrina devastated New Orleans. The storm surge created by the hurricane overtopped the Industrial Canal levee and floodwall, flooding the Lower Ninth Ward and other parts of the city.Fifty-nine personal injury and property damage class action lawsuits were filed in Louisiana State and federal court against several defendants, including WGI Ohio, seeking$200.0 billionin damages plus attorneys' fees and costs. Plaintiffs are residents and property owners who claim to have incurred damages from the breach and failure of the hurricane protection levees and floodwalls in the wake of Hurricane Katrina.

All 59 lawsuits were pleaded as class actions but none have yet been certified as class actions. Along with WGI Ohio, the U.S. Army Corps of Engineers, the Board for the Orleans Levee District, and its insurer, St. Paul Fire and Marine Insurance Company were also named as defendants. At this time WGI Ohio and the Army Corps of Engineers are the remaining defendants. These 59 lawsuits, along with other hurricane-related cases not involving WGI Ohio, were consolidated in the United States District Court for the Eastern District of Louisiana (“District Court”).

Plaintiffs allege that defendants were negligent in their design, construction and/or maintenance of the New Orleans levees. Specifically, as to WGI Ohio, plaintiffs allege that work WGI Ohio performed adjacent to the Industrial Canal damaged the levee and floodwall, causing or contributing to breaches and flooding. WGI Ohio did not design, construct, repair or maintain any of the levees or the floodwalls that failed during or after Hurricane Katrina. Rather, WGI Ohio performed work adjacent to the Industrial Canal as a contractor for the federal government.

WGI Ohio filed a motion for summary judgment, seeking dismissal on grounds that government contractors are immune from liability. On December 15, 2008, the District Court granted WGI Ohio's motion for summary judgment, but several plaintiffs appealed that decision to the United States Fifth Circuit Court of Appeals on April 27, 2009. On September 14, 2010, the Court of Appeals reversed the District Court's summary judgment decision and WGI Ohio's dismissal, and remanded the case back to the District Court for further litigation. On August 1, 2011, the District Court decided that the government contractor immunity defense would not be available to WGI Ohio at trial, but would be an issue for appeal.Five of the cases were tried in District Court from September 12, 2012 through October 3, 2012. A decision is expected in 2013.

WGI Ohio intends to continue to defend these matters vigorously; however, WGI Ohio cannot provide assurance that it will be successful in these efforts. The potential range of loss and the resolution of these matters cannot be determined at this time primarily due to the unknown number of individual plaintiffs who are actually asserting claims against WGI Ohio; the uncertainty regarding the nature and amount of each individual plaintiff's damage claims; uncertainty concerning legal theories and factual bases that plaintiffs may present and their resolution by courts or regulators; and uncertainty about the plaintiffs' claims, if any, that might survive certain key motions of our affiliate, as well as a number of additional factors.

• DOE Deactivation, Demolition, and Removal Project: WGI Ohio executed a cost-reimbursable task order with the DOE in 2007 to provide deactivation, demolition and removal services at a New York State project site that during 2010 experienced contamination and performance issues. In February 2011, WGI Ohio and the DOE executed a Task Order Modification that changed some cost-reimbursable contract provisions to at-risk. The Task Order Modification, including subsequent amendments, requires the DOE to pay all project costs up to $105.9 million, requires WGI Ohio and the DOE to equally share in all project costs incurred from $105.9 to $145.9 million, and requires WGI Ohio to pay all project costs exceeding $145.9 million.In addition, in September 2011, WGI Ohio voluntarily paid a civil penalty related to the contamination incident.

  Through December 28, 2012, WGI Ohio has incurred total project costs of $216.3 million and has recorded cumulative project losses of $15.1 million.Due to unanticipated requirements and permitting delays by federal and state agencies, as well as delays and related ground stabilization activities caused by Hurricane Irene, WGI Ohio has been required to perform work outside the scope of the Task Order Modification. Based on changes and delays to date, requests for equitable adjustment (“REA”) amounting to $47.1 million and proposals related to the hurricane-caused impacts and other directed changes in the amount of $105.1 million have been submitted to the DOE for approval. WGI Ohio also expects to submit additional REAs of at least $11.0 million to the DOE in 2013. Through December 28, 2012, the DOE authorized an additional $27.2 million of funding primarily related to the hurricane-caused impacts. In early 2013, WGI Ohio submitted several certified claims against the DOE pursuant to the Contracts Disputes Acts seeking recovery of $100.8 million of the above unfunded REA and proposal costs and $4.5 million of fee on the expanded work scope. The final project completion costs are not currently estimable due to continuing delays in permitting, other delays, and approval of a final project plan. WGI Ohio can give no assurance that it will not be obligated to pay some or all of the REAs, non-funded hurricane-caused impacts, the other directed changes, and additional project completion costs, which would negatively impact our future results of operations.

• Bolivian Mine Services Agreement: In 2009, a mine service agreement performed by one of our wholly owned subsidiaries, Washington Group Bolivia, was unilaterally terminated for convenience by the mine owner. The mine owner disputed the fair market value of mining equipment it was required to repurchase under the terms of the mine services agreement. Subsequently, on November 16, 2010, Washington Group Bolivia received a formal claim asserting breaches of contractual obligations and warranties, including the failure to adhere to the requisite professional standard of care while performing the mine services agreement.On June 17, 2011, Washington Group Bolivia received a formal demand for arbitration pursuant to the Rules of Arbitration of the International Chamber of Commerce asserting claims up to $52.6 million. Washington Group Bolivia brought a $50 million counterclaim on August 3, 2012 against the mine owner asserting claims of wrongful termination and lost productivity. Arbitration on the mine owner's claims and Washington Group Bolivia'scounterclaims commenced and concluded in December 2012. In the course of the arbitration proceedings, the mine owner has reduced its claims to approximately $32.2 million, while Washington Group Bolivia has refined its counterclaim amount to not more than $62.9 million.

  Washington Group Bolivia intends to continue to defend this matter vigorously; however, we cannot provide assurance that we will be successful in these efforts. While Washington Group Bolivia believes that the mine owner's claims are largely without merit, the potential range of loss and the resolution of these matters cannot be determined at this timedue to a number of factors, including theuncertainty of how the arbitration tribunal will apply the multiple legal theories and factual bases forthe parties' respective claims and defenses and the added complexity that comes from the fact that the parties, project location and applicable law span multiple countries and jurisdictions.

• Canadian Pipeline Contract: In January 2010, a pipeline owner filed an action in the Court of Queen's Bench of Alberta, Canada against Flint, a company acquired by us in May 2012, as well as against a number of other defendants, alleging that the defendants negligently provided pipe coating and insulation system services, engineering, design services, construction services, and other work, causing damage to and abandonment of the line. The pipeline owner alleges it has sufferedapproximately C$85.0 million in damages in connection with the abandonment and replacement of the pipeline. Flint was the construction contractor on the pipeline project. Other defendants were responsible for engineering and design-services and for specifying and providing the actual pipe, insulation and coating materials used in the line. In January 2011, the pipeline owner served a Statement of Claim on Flint and, in September 2011, Flint filed a Statement of Defense denying that the damages to the coating system of the pipeline were caused by any negligence or breach of contract of Flint. Flint believes the damages were caused or contributed to by the negligence of one or more of the codefendants and/or by the negligent operation of the pipeline owner.

  Flint intends to continue to defend this matter vigorously; however, it cannot provide assurance that it will be successful,in whole or in part,in these efforts. The potential range of loss and the resolution of this matter cannot be determined at this time primarily due to the early stage of the discovery; the substantial uncertainty regarding the actual cause of the damage to or loss of the line; the nature and amount of each individual damage claim against the various defendants; and the uncertainty concerning legal theories and factual bases that customer may present against all or some of the defendants.

• U.K. Joint Venture: On April 12, 2010, one of our U.K. joint ventures sent several bags of low level non-exempt radioactive waste to a waste disposal facility that was not licensed to handle such waste. On November 15, 2012, the U.K. Environment Agency and the U.K. Department for Transport initiated environmental regulatory proceedings against our U.K. joint venture in the Workington Magistrates' Court under the U.K. Environmental Permitting Regulations 2010, the Radioactive Substances Act 1993, the Carriage of Dangerous Goods and the use of Transportable Pressure Equipment Regulations 2009. On February 7, 2013, our U.K. joint venture entered a plea of guilty before the Magistrates' Court and the matter was referred to the Crown Court for sentencing. The potential range of loss and the resolution of this matter cannot be determined at this time primarily due to the fact that the matter involves unique and complex environmental and regulatory legal issues, as well as a number of additional factors.

The resolution of outstanding claims is subject to inherent uncertainty, and it is reasonably possible that resolution of any of the above outstanding claims or legal proceedings could have a material adverse effect on us. Our evaluation of the impact of pending actions could change in the future and unfavorable outcomes and/or defense costs, depending upon the amount and timing, could have a material adverse effect on our results of operations or cash flows for future periods.

Insurance

Generally, our insurance program covers workers' compensation and employer's liability, general liability, automobile liability, professional errors and omissions liability, property, marine property and liability, and contractor's pollution liability (in addition to other policies for specific projects). Our insurance program includes deductibles or self-insured retentions for each covered claim. In addition, our insurance policies contain exclusions and sublimits that insurance providers may use to deny or restrict coverage. Excess liability, contractor's pollution liability, and professional liability insurance policies provide for coverages on a “claims-made” basis, covering only claims actually made and reported during the policy period currently in effect. Thus, if we do not continue to maintain these policies, we will have no coverage for claims made after the termination date even for claims based on events that occurred during the term of coverage. While we intend to maintain these policies, we may be unable to maintain existing coverage levels.

Guarantee Obligations and Commitments

As of December 28, 2012, we had the following guarantee obligations and commitments:

We have agreed to indemnify one of our joint venture partners up to $25.0 million for any potential losses, damages, and liabilities associated with lawsuits in relation to general and administrative services we provide to the joint venture. Currently, we have not been advised of any indemnified claims under this guarantee.

We have guaranteed a letter of credit issued on behalf of one of our consolidated joint ventures. The total amount of the letter of credit was $0.9 million as of December 28, 2012.

As of December 28, 2012, we had $36.3 million in bank guarantees outstanding under foreign credit facilities and other banking arrangements.

We also maintain a variety of commercial commitments that are generally made to support provisions of our contracts. In addition, in the ordinary course of business, we provide letters of credit to clients and others against advance payments and to support other business arrangements. We are required to reimburse the issuers of letters of credit for any payments they make under the letters of credit.

In the ordinary course of business, we may provide performance assurances and guarantees related to our services. For example, these guarantees may include surety bonds, arrangements among our client, a surety, and us to ensure we perform our contractual obligations pursuant to our client agreement. If our services under a guaranteed project are later determined to have resulted in a material defect or other material deficiency, then we may be responsible for monetary damages or other legal remedies. When sufficient information about claims on guaranteed projects is available and monetary damages or other costs or losses are determined to be probable, we recognize such guarantee losses.

Lease Obligations

Total rental expense included in operations for operating leases for the years ended December 28, 2012,December 30, 2011, and December 31, 2010,totaled $210.0 million,$188.5 million, and $192.5 million, respectively. Some of the operating leases are subject to renewal options and escalation based upon property taxes and operating expenses. These operating lease agreements expire at varying dates through 2026. Obligations under operating leases include office and other equipment rentals.

Obligations under non-cancelable operating lease agreements were as follows:

(In millions)		Operating Leases
2013		$	224.9
2014			151.7
2015			116.0
2016			86.6
2017			58.9
Thereafter			162.9
	Total minimum lease payments	$	801.0

Restructuring Costs

For the year ended December 28, 2012, we did not incur restructuring charges. For the years ended December 30, 2011 and December 31, 2010, we recorded restructuring charges of $5.5 million and $10.6 million, respectively, in our Consolidated Statement of Operations, which consisted primarily of costs for severance and associated benefits and the cost of facility closures. The majority of the restructuring costs resulted from the integration of Scott Wilson into our existing Infrastructure & Environment's U.K. and European business and necessary responses to reductions in market opportunities in Europe.

During fiscal year 2011, we made$12.9 million of payments related to these restructuring plans. As of December 30, 2011 and December 31, 2010, our restructuring reserves were $3.8 million and $11.6 million, respectively. As of December 28, 2012, no amounts remain outstanding.

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SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (DETAILS) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended																9 Months Ended	12 Months Ended
	Dec. 28, 2012		Sep. 28, 2012		Jun. 29, 2012		Mar. 30, 2012		Dec. 30, 2011		Sep. 30, 2011		Jul. 01, 2011		Apr. 01, 2011		Sep. 30, 2011	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Selected Quarterly Financial Information (unaudited) [Abstract]
Revenues	$ 2,972.7		$ 2,947.6		$ 2,690.7		$ 2,361.5		$ 2,393.2		$ 2,471.7		$ 2,360.3		$ 2,319.8			$ 10,972.5		$ 9,545.0		$ 9,177.1
Cost of revenues	(2,810.5)		(2,753.3)		(2,527.5)		(2,203.2)		(2,257.7)		(2,300.1)		(2,228.3)		(2,202.7)			(10,294.5)		(8,988.8)		(8,609.5)
Acquisition-related expenses			0.8	[1]	(11.3)	[1]	(5.6)	[1]					(1.0)					(16.1)		(1.0)		(11.9)
Restructuring costs									(5.5)	[2]										(5.5)		(10.6)
Goodwill impairment									(27.7)	[3]	(798.1)	[3]								(825.8)
Operating income (loss)	171.4	[4],[5]	203.6	[5]	149.5	[5]	161.4	[5]	114.1	[6]	(620.2)	[4],[6]	150.6	[6]	132.1	[6]		685.9	[7]	(223.4)	[7]	544.4	[7]
Other income (expenses)	(3.6)	[8]	10.8	[8]	(9.2)	[8]	2.5	[8]										0.5
Income tax benefit (expense)	(34.7)		(66.1)		(40.5)		(48.6)		(46.8)		39.5		(45.5)		(39.0)			(189.9)		(91.8)		(127.6)
Net income (loss) including noncontrolling interests	113.4		127.8		79.1		105.5		60.6		(585.8)		100.0		87.9			425.8		(337.3)		386.2
Noncontrolling interests in income of consolidated subsidiaries	(42.8)		(21.1)		(25.5)		(25.8)		(32.2)		(37.3)		(33.2)		(25.8)			(115.2)		(128.5)		(98.3)
Net income (loss) attributable to URS	70.6		106.7		53.6		79.7		28.4		(623.1)		66.8		62.1			310.6		(465.8)		287.9
Earnings (loss) per share:
Basic	$ 0.95		$ 1.43		$ 0.72		$ 1.08		$ 0.37		$ (8.05)		$ 0.87		$ 0.79			$ 4.18		$ (6.03)		$ 3.56
Diluted	$ 0.95		$ 1.43		$ 0.72		$ 1.07		$ 0.37		$ (8.05)		$ 0.86		$ 0.79			$ 4.17		$ (6.03)		$ 3.54
Weighted-average shares of common stock outstanding:
Basic	74.5	[9]	74.5		74.2		74.0		76.3		77.4	[9]	77.2		78.4			74.3	[9]	77.3	[9]	81.0	[9]
Diluted	74.6		74.6		74.6		74.3		76.4		77.4		77.7		78.8			74.5		77.3		81.3
Selected Quarterly Financial Information (Textuals) [Abstract]
Goodwill impairment									27.7	[3]	798.1	[3]								825.8
Goodwill impairment loss after tax									32.9								699.3	732.2
Decrease in diluted earnings per share attributable to goodwill impairment									$ 0.43											$ 9.03
Effective income tax rate %															(3.60%)			30.80%		(37.40%)		24.80%
Consolidated Statements of Operations Data [Abstract]
Income (loss) before income taxes																		615.7		(245.5)		513.8
Income tax benefit (expense)	(34.7)		(66.1)		(40.5)		(48.6)		(46.8)		39.5		(45.5)		(39.0)			(189.9)		(91.8)		(127.6)
Net income (loss) including noncontrolling interests	113.4		127.8		79.1		105.5		60.6		(585.8)		100.0		87.9			425.8		(337.3)		386.2
Noncontrolling interests in income of consolidated subsidiaries	(42.8)		(21.1)		(25.5)		(25.8)		(32.2)		(37.3)		(33.2)		(25.8)			(115.2)		(128.5)		(98.3)
Net income (loss) attributable to URS	70.6		106.7		53.6		79.7		28.4		(623.1)		66.8		62.1			310.6		(465.8)		287.9
SR-125 Project [Abstract]
Litigation settlement gross													9.5
Asset impairment charge for an unconsolidated joint venture																						$ 25.0

[1] For the year ended December 28, 2012, we recorded acquisition-related expenses in connection with our acquisition of Flint. See further discussion in Note 8, “Acquisitions.”

[2] For the year ended December 30, 2011, we recorded restructuring costs resulting from the integration of Scott Wilson into our existing U.K. and European business and necessary responses to reductions in market opportunities in Europe. See further discussion in Note 17, “Commitments and Contingencies.”

[3] For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively. During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively. See further discussion in Note 9, “Goodwill and Intangible Assets.”

[4] The operating income (loss) for the three##D<curpermonth> months ended ##D<priorperiod> includes a $798.1 million goodwill impairment charge.

[5] For the first quarter of 2012, we revised our operating income from $163.9 million, as previously reported in our 10-Q, to $161.4 million due to the reclassification of a $2.5 million gain recognized on foreign currency forward contracts from “General and administrative expenses” to “Other income (expenses)” on our Consolidated Statements of Operations. This revision had no impact on net income attributable to URS or EPS.

[6] In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders. As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

[7] The operating income (loss) for the year ended December 30, 2011 included a $825.8 million goodwill impairment charge. See Note 9, “Goodwill and Intangible Assets” for more information.

[8] During fiscal 2012, “Other income (expenses)” represents foreign currency gains (losses) recognized on intercompany financing arrangements and foreign currency forward contracts. See further discussion in Note 11, “Fair Value of Debt Instruments and Derivative Instruments.”

[9] Weighted-average shares of common stock outstanding is net of treasury stock.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income (loss) including noncontrolling interests	$ 425.8	$ (337.3)	$ 386.2
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	132.4	82.1	84.3
Amortization of intangible assets	101.2	60.6	49.2
Amortization of debt issuance costs and discount/premium	2.6	5.8	9.2
Foreign currency gains (losses) related to foreign currency derivatives and intercompany loans	(0.5)
Restructuring costs		3.3	10.6
Normal profit	(5.7)	(2.7)	1.2
Goodwill impairment		825.8
Loss on extinguishment of debt		2.9
Provision for doubtful accounts	6.6	2.8	6.7
Gain on disposal of property and equipment	(3.4)	(8.9)
Deferred income taxes	(16.6)	(23.3)	10.9
Stock-based compensation	43.6	45.3	44.0
Excess tax benefits from stock-based compensation	(0.1)	(0.8)	(1.2)
Equity in income of unconsolidated joint ventures	(107.6)	(132.2)	(70.3)
Dividends received from unconsolidated joint ventures	88.7	107.3	92.5
Changes in operating assets, liabilities and other, net of effects of business acquisitions:
Accounts receivable and costs and accrued earnings in excess of billings on contracts	(98.8)	7.8	(14.0)
Inventory	7.0	(11.9)	1.1
Other current assets	(30.4)	(7.1)	28.7
Advances to unconsolidated joint ventures	3.4	(0.2)	(1.7)
Accounts payable, accrued salaries and employee benefits, and other current liabilities	(13.6)	(43.0)	(67.6)
Billings in excess of costs and accrued earnings on contracts	(23.2)	19.2	(30.2)
Other long-term liabilities	(10.6)	13.0	22.5
Other long-term assets	(70.6)	(102.6)	(35.7)
Total adjustments and changes	4.4	843.2	140.2
Net cash from operating activities	430.2	505.9	526.4
Cash flows from investing activities:
Payments for business acquisitions, net of cash acquired	(1,345.7)	(282.1)	(291.7)
Changes in cash related to consolidation and/or deconsolidation of joint ventures			20.7
Proceeds from disposal of property and equipment	25.3	14.1	8.3
Payments in settlement of foreign currency forward contract	(1,260.6)
Receipts in settlement of foreign currency forward contract	1,260.3
Investments in unconsolidated joint ventures	(4.4)	(19.6)	(6.0)
Changes in restricted cash	3.9	7.0	(16.1)
Capital expenditures, less equipment purchased through capital leases and equipment notes	(125.4)	(67.5)	(45.2)
Maturity of short-term investments			30.2
Net cash from investing activities	(1,446.6)	(348.1)	(299.8)
Cash flows from financing activities:
Borrowings from long-term debt	998.9	700.0
Payments on long-term debt	(38.0)	(632.6)	(159.6)
Borrowings from revolving line of credit	661.6	138.6
Payments on revolving line of credit	(583.6)	(115.7)
Net payments under foreign lines of credit and short-term notes	(20.5)	(16.4)	(7.6)
Net change in overdrafts	54.5	(18.0)	14.4
Payments on capital lease obligations	(14.6)	(10.9)	(7.5)
Payments of debt issuance costs	(8.8)	(3.9)
Excess tax benefits from stock-based compensation	0.1	0.8	1.2
Proceeds from employee stock purchases and exercises of stock options	8.9	11.7	11.3
Distributions to noncontrolling interests	(83.8)	(111.7)	(107.2)
Contributions and advances from noncontrolling interests	2.3	6.6	8.2
Dividends paid	(44.7)
Repurchases of common stock	(40.0)	(242.8)	(128.3)
Net cash from financing activities	892.3	(294.3)	(375.1)
Net change in cash and cash equivalents	(124.1)	(136.5)	(148.5)
Effect of foreign exchange rate changes on cash and cash equivalents	2.6	(1.3)	1.2
Cash and cash equivalents at beginning of period	436.0	573.8	721.1
Cash and cash equivalents at end of period	314.5	436.0	573.8
Supplemental information:
Interest paid	64.5	15.2	24.0
Taxes paid	150.6	177.3	79.3
Supplemental schedule of non-cash investing and financing activities:
Loan Notes issued and consideration for vested shares exercisable in connection with an acquisition			30.9
Equipment acquired with capital lease obligations and equipment note obligations	27.9	14.2	12.9
Purchase price adjustment and contingent consideration payable under acquisitions		7.9
Cash dividends declared but not paid	$ 16.7

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PARENTHETICAL DATA TO THE CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Millions, except Share data, unless otherwise specified	Dec. 28, 2012	Dec. 30, 2011
Current assets:
Accounts receivable retentions	$ 114.4	$ 67.5
Current liabilities:
Accounts payable and subcontractors payable retentions	$ 32.3	$ 39.6
URS stockholders' equity:
Preferred stock, authorized shares	3,000,000	3,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	200,000,000	200,000,000
Common stock shares issued	88,900,000	87,800,000
Common stock shares outstanding	76,800,000	76,700,000
Treasury stock shares at cost	12,100,000	11,100,000

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INDEBTEDNESS

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

INDEBTEDNESS

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
Effective average interest rates paid on the revolving line of credit		1.9	%		1.3	%		3.0	%
Average daily revolving line of credit balances	$	139.5		$	25.9		$	0.3
Maximum amounts outstanding at any point during the year	$	420.0		$	104.6		$	12.1

NOTE 10. INDEBTEDNESS

Indebtedness consisted of the following:

		December 28,		December 30,
(In millions)		2012		2011
Term loan, net of debt issuance costs		$	666.3	$	695.1
3.85% Senior Notes (net of discount)			399.5		—
5.00% Senior Notes (net of discount)			599.5		—
7.50% Canadian Notes (including premium)			203.8		—
Revolving line of credit			100.5		23.0
Other indebtedness			94.7		80.4
	Total indebtedness		2,064.3		798.5
Less:
Current portion of long-term debt			71.8		61.5
	Long-term debt	$	1,992.5	$	737.0

2011 Credit Facility

As of December 28, 2012 and December 30, 2011, the outstanding balances of the term loan under our senior credit facility (“2011 Credit Facility”) were$670.0 million and $700.0 million, respectively. Loans outstanding under our 2011 Credit Facility bear interest, at our option, at the base rate or at the London Interbank Offered Rate (“LIBOR”) plus, in each case, an applicable per annum margin. The applicable margin is determined based on the better of our debt ratings orour leverage ratio in accordance with a pricing grid. The interest rate at which we normally borrow is comprised of LIBOR plus 150 basis points. As of December 28, 2012and December 30, 2011, the interest ratesapplicable to the term loan were1.71% and 1.80%, respectively.

Our 2011 Credit Facility will mature on October 19, 2016 and our first quarterly principal payment was due on December 28, 2012. We have an option to prepay the term loans at anytime without penalty.

Under our 2011 Credit Facility, we are subject to financial covenants and other customary non-financial covenants. Our financial covenants include a maximum consolidated leverage ratio, which is calculated by dividing total debt by earnings before interest, taxes, depreciation and amortization (“EBITDA”), as defined below, and a minimum interest coverage ratio, which is calculated by dividing cash interest expense into EBITDA. Both calculations are based on the financial data of our most recent four fiscal quarters.

For purposes of our 2011 Credit Facility, consolidated EBITDA is defined as consolidated net income attributable to URS plus interest, depreciation and amortization expense, income tax expense, and other non-cash items (including impairments of goodwill or intangible assets). Consolidated EBITDA shall include pro-forma components of EBITDA attributable to any permitted acquisition consummated during the period of calculation.

Our 2011 Credit Facility contains restrictions, some of which apply only above specific thresholds, regarding indebtedness, liens, investments and acquisitions, contingent obligations, dividend payments, stock repurchases, asset sales, fundamental business changes, transactions with affiliates, and changes in fiscal year.

Our 2011 Credit Facility identifies various events of default and provides for acceleration of the obligations and exercise of other enforcement remedies upon default. Events of default include our failure to make payments under the credit facility; cross-defaults; a breach of financial, affirmative and negative covenants; a breach of representations and warranties; bankruptcy and other insolvency events; the existence of unsatisfied judgments and attachments; dissolution; other events relating to the Employee Retirement Income Security Act (“ERISA”); a change in control and invalidity of loan documents.

Our 2011 Credit Facility is guaranteed by all of our existing and future domestic subsidiaries that, on an individual basis, represent more than 10% of either our consolidated domestic assets or consolidated domestic revenues. If necessary, additional domestic subsidiaries will be included so that assets and revenues of subsidiary guarantors are equal at all times to at least 80% of our consolidated domestic assets and consolidated domestic revenues of our available domestic subsidiaries.

We may use any future borrowings from our 2011 Credit Facility along with operating cash flows for general corporate purposes, including funding working capital, making capital expenditures, funding acquisitions, dividends and repurchasing our common stock.

We were in compliance with the covenants of our 2011 Credit Facility as of December 28, 2012.

Senior Notes and Canadian Notes

On March 15, 2012, we issued in a private placement $400.0 million aggregate principal amount of 3.85% Senior Notes due on April 1, 2017 and $600.0 million aggregate principal amount of 5.00% Senior Notes due on April 1, 2022 (collectively, the “Senior Notes”).As of December 28, 2012, the outstanding balance of the Senior Notes was $999.0million, net of$1.0 million ofdiscount.

Interest on the Senior Notes is payable semi-annually on April 1 and October 1 of each year beginning on October 1, 2012. The net proceeds of the Senior Notes were used to fund the acquisition of Flint. We may redeem the Senior Notes, in whole or in part, at any time and from time to time, at a price equal to 100% of the principal amount, plus a "make-whole" premium and accrued and unpaid interest as described in the indenture. In addition, we may redeem all or a portion of the 5.00% Senior Notes at any time on or after the date that is three months prior to the maturity date of those 5.00% Senior Notes, at a redemption price equal to 100% of the principal amount of the 5.00% Senior Notes to be redeemed. We may also, at our option, redeem the Senior Notes, in whole, at 100% of the principal amount and accrued and unpaid interest upon the occurrence of certain events that result in an obligation to pay additional amounts as a result of certain specified changes in tax law described in the indenture. Additionally, if a change of control triggering event occurs, as defined by the terms of the indenture, we will be required to offer to purchase the Senior Notes at a purchase price equal to 101% of the principal amount, plus accrued and unpaid interest, if any, to the date of the purchase. Weare generally not limited under the indenture governing the Senior Notes in our ability to incur additional indebtedness provided we are in compliance with certain restrictive covenants, including restrictions on liens and restrictions on sale and leaseback transactions, and merge or sell substantially all of our property and assets.

The Senior Notes are our general unsecured senior obligations and rank equally with our other existing and future unsecured senior indebtedness. The Senior Notes are fully and unconditionally guaranteed (the “Guarantees”) by each of our current and future domestic subsidiaries that are guarantors under our2011 Credit Facility or that are wholly owned domestic obligors or wholly owned domestic guarantors, individually or collectively, under any future indebtedness ofour subsidiaries in excess of $100.0 million (the “Guarantors”). The Guarantees are the Guarantors' unsecured senior obligations and rank equally with the Guarantors' other existing and future unsecured senior indebtedness.

In connection with the sale of the Senior Notes, we entered into a registration rights agreement under which we agreed to file a registration statement with the Securities and Exchange Commission (“SEC”) offering to exchange any privately placed Senior Notes with substantially similar notes, except that the newly exchanged notes will be unrestricted and freely tradable securities. We also agreed to use commercially reasonable efforts to cause the registration statement to be declared effective by the SEC and complete the exchange offer no later than March 15, 2013.We do not expect to complete our exchange offer untilafter March 15, 2013. After that date, we will be required to pay additional interest up to a maximum of 50 basis points to the holders of the Senior Notes until the exchange offer is completed.

On May 14, 2012, we guaranteed Flint's senior notes (the “Canadian Notes”) with an outstanding face value of C$175.0 million (US$175.0 million). The Canadian Notes mature on June 15, 2019 and bear interest at 7.5% per year, payable in equal installments semi-annually in arrears on June 15 and December 15 of each year. As of December 28, 2012, the outstanding balance of the Canadian Notes was $203.8 million, including $28.0million of premium.

The Canadian Notes are Flint's direct senior unsecured obligations and rank paripassu, subject to statutory preferred exceptions, with URS'guarantee of thatdebt. Prior to June 15, 2014, we may redeem up to 35.0% of the principal amount of the outstanding Canadian Notes with the net cash proceeds of one or more qualified equity offerings at a redemption price equal to 107.5% of the principal amount of the Canadian Notes, provided that at least 65.0% of the aggregate principal amount of the Canadian Notes remain outstanding. We may also redeem the Canadian Notes prior to June 15, 2015 at a redemption price equal to 100.0% of the principal amount of the Canadian Notes plus an applicable premium. We may also redeem the Canadian Notes on or after June 15, 2015 at a redemption price equal to 103.8% of the principal amount if redeemed in the twelve-month period beginning June 15, 2015; at a redemption price equal to 101.9% of the principal amount if redeemed in the twelve-month period beginning June 15, 2016 and at a redemption price equal to 100.0% of the principal amount if redeemed in the period beginning June 15, 2017 before maturity.

Upon the occurrence of a change in control, Canadian Notes holders have a right to require that their Notes be redeemed at a cash price equal to 101.0% of the principal amount of the Canadian Notes.  Our acquisition of Flint constituted a change in control under the Canadian Note indenture and, as a result, the holders of the Canadian Notes had the right to require that their Notes be redeemed. The Canadian Notes also contain covenants limiting us and some of our subsidiaries' ability to create liens and restricts them from amalgamating, consolidating or merging with or into or winding up or dissolving into another person or selling, leasing, transferring, conveying or otherwise disposing of or assigning all or substantially all of their assets. The Canadian Notes also contain covenants, which are suspended as long as the Canadian Notes have investment grade ratingsthat would restrict us and some of our subsidiaries from making restricted payments, incurring indebtedness, selling assets and entering into transactions with affiliates. As of December 28, 2012, the Canadian Notes carried investment grade ratings.

We were in compliance with the covenants of our Senior Notes and Canadian Notes as of December 28, 2012.

Revolving Line of Credit

Our revolving line of credit is used to fund daily operating cash needs and to support our standby letters of credit. In the ordinary course of business, the use of our revolving line of credit is a function of collection and disbursement activities. Our daily cash needs generally follow a predictable pattern that parallels our payroll cycles, which dictate, as necessary, our short-term borrowing requirements.

We had outstanding debt balancesof $100.5 million and $23.0 millionon our revolving line of credit as of December 28, 2012 and December 30, 2011, respectively. As of December 28, 2012, we had issued $132.0 million of letters of credit, leaving $767.5 million available under our revolving credit facility.

Our revolving line of credit information was summarized as follows:

	Year Ended
	December 28,			December 30,			December 31,
(In millions, except percentages)	2012			2011			2010
Effective average interest rates paid on the revolving line of credit		1.9	%		1.3	%		3.0	%
Average daily revolving line of credit balances	$	139.5		$	25.9		$	0.3
Maximum amounts outstanding at any point during the year	$	420.0		$	104.6		$	12.1

Other Indebtedness

Notes payable, five year loan notes, and foreign credit lines. As of December 28, 2012 and December 30, 2011, we had outstanding amounts of $35.5million and $53.1million, respectively, in notes payable, five-year loan notes, and foreign lines of credit. The weighted-average interest rates of the notes were approximately 4.68% and 4.04% as of December 28, 2012 and December 30, 2011, respectively. Notes payable primarily include notes used to finance the purchase of office equipment, computer equipment and furniture.

As of December 28, 2012 and December 30, 2011, we maintained several credit lines with aggregate borrowing capacity of $50.8million and $33.7 million, respectively, and had remaining borrowing capacity of $47.7million and $23.2 million, respectively.

Capital Leases. As ofDecember 28, 2012 and December 30, 2011, we had obligations under our capital leases of approximately $59.2 million and $27.3 million, respectively, consisting primarily of leases for office equipment, computer equipment and furniture.

Maturities

As of December 28, 2012, the amounts of our long-term debt outstanding (excluding capital leases) that mature in the next five years and thereafter were as follows:

(In millions)
Less than one year		$	43.4
Second year			60.1
Third year			71.8
Fourth year			626.8
Fifth year			399.8
Thereafter			803.2
	Total	$	2,005.1

As of December 28, 2012, the amounts of capital leases that mature in the next five years and thereafter were as follows:

(In millions)		Capital Leases
Less than one year		$	29.9
Second year			11.7
Third year			9.6
Fourth year			7.6
Fifth year			3.5
	Total minimum lease payments		62.3
Less: amounts representing interest			3.1
	Present value of net minimum lease payments	$	59.2

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Document And Entity Information (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2012	Feb. 18, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 28, 2012
Entity Registrant Name	URS CORP /NEW/
Entity Central Index Key	0000102379
Current Fiscal Year End Date	--12-28
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$ 3,142.4
Entity Common Stock, Shares Outstanding		77,021,153
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

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FAIR VALUES OF DEBT INSTRUMENTS AND DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

FAIR VALUES OF DEBT INSTRUMENTS AND DERIVATIVE INSTRUMENTS

NOTE11. FAIR VALUE OF DEBT INSTRUMENTS AND DERIVATIVE INSTRUMENTS

2011 Credit Facility

As of December 28, 2012 and December 30, 2011, the estimated fair market values of the term loan under our 2011 Credit Facility were approximately $667.3 million and $697.4 million, respectively. The carrying value of this term loan on our Consolidated Balance Sheets as of December 28, 2012 and December 30, 2011was $670.0 million and $700.0 million, respectively, excluding unamortized issuance costs. The fair value of our term loan was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary loan market and multiplying it by the outstanding balance of our term loan.

Senior Notes and Canadian Notes

As of December 28, 2012, the estimated fair market value of the Senior Notes and Canadian Notes was approximately $1.2billion and the carrying value of these notes on our Consolidated Balance Sheets was $1.2 billion, excluding unamortized discount.The fair value of the Senior Notes and Canadian Notes was derived by taking the mid-point of the trading prices from an observable market input (Level 2)in the secondary loan market and multiplying it by the outstanding balance of the notes.

Derivative Instruments

We use our derivative instruments as a risk management tool andnot for trading or speculative purposes. The fair value of each derivative instruments is based on mark-to-market model measurements that are interpolated from observable market data, including spot and forward rates, as of December 28, 2012 and for the duration of each derivative's terms. As of December 28, 2012, there were no derivative instruments outstanding.

Foreign Currency Exchange Contracts

We operate our business globally and our foreign subsidiaries conduct businesses in various foreign currencies. Therefore, we are subject to foreign currency risk. From time to time, we may purchase derivative financial instruments in the form of foreign currency exchange contracts to manage specific foreign currency exposures.

During March and April 2012, we entered into various foreign currency forward contracts with an aggregate notional amount of C$1.25 billion (equivalent to US$1.25 billion as of March 30, 2012) with maturity windowsranging from March 7, 2012 to May 31, 2012. The primary objective of the contracts was to manage our exposure to foreign currency transaction risk related to the funding of our acquisition of Flint inCanadian dollars. These contracts settled during the second quarter of 2012.

For the year ended December 28, 2012, we recorded a net loss of $0.3 million on our foreign currency forward contracts in “General and administrative expenses” on our Consolidated Statements of Operations. We also recorded foreign currency translation gains of$0.8 million on intercompany loans for the year ended December 28, 2012.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Income Statement [Abstract]
Revenues	$ 10,972.5		$ 9,545.0		$ 9,177.1
Cost of revenues	(10,294.5)		(8,988.8)		(8,609.5)
General and administrative expenses	(83.6)		(79.5)		(71.0)
Acquisition-related expenses	(16.1)		(1.0)		(11.9)
Restructuring costs			(5.5)		(10.6)
Goodwill impairment			(825.8)
Equity in income of unconsolidated joint ventures	107.6		132.2		70.3
Operating income (loss)	685.9	[1]	(223.4)	[1]	544.4	[1]
Interest expense	(70.7)		(22.1)		(30.6)
Other income (expenses)	0.5
Income (loss) before income taxes	615.7		(245.5)		513.8
Income tax benefit (expense)	(189.9)		(91.8)		(127.6)
Net income (loss) including noncontrolling interests	425.8		(337.3)		386.2
Noncontrolling interests in income of consolidated subsidiaries	(115.2)		(128.5)		(98.3)
Net income (loss) attributable to URS	$ 310.6		$ (465.8)		$ 287.9
Earnings (loss) per share:
Basic	$ 4.18		$ (6.03)		$ 3.56
Diluted	$ 4.17		$ (6.03)		$ 3.54
Weighted-average shares of common stock outstanding:
Basic	74.3	[2]	77.3	[2]	81.0	[2]
Diluted	74.5		77.3		81.3
Cash dividends declared per share	$ 0.80

[1] The operating income (loss) for the year ended December 30, 2011 included a $825.8 million goodwill impairment charge. See Note 9, “Goodwill and Intangible Assets” for more information.

[2] Weighted-average shares of common stock outstanding is net of treasury stock.

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INVENTORY

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

INVENTORY

NOTE 5. INVENTORY

The table below presents the components of inventory

		December 28,		December 30,
(In millions)		2012		2011
Raw materials		$	14.2	$	2.7
Work in progress			9.8		16.8
Finished goods			24.9		—
Supplies			12.6		—
	Total	$	61.5	$	19.5

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ACCOUNTS RECEIVABLE AND COSTS AND ACCRUED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

ACCOUNTS RECEIVABLE AND COSTS AND ACCRUED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS

NOTE 4. ACCOUNTS RECEIVABLE AND COSTS AND ACCRUED EARNINGS IN EXCESS OF BILLINGS ON CONTRACTS

The following table summarizes the components of our accounts receivable and Unbilled Accounts Receivable with the U.S. federal government and with other customers as of December 28, 2012 and December 30, 2011:

			December 28,		December 30,
(In millions)			2012		2011
Accounts receivable:
	U.S. federal government		$	376.2	$	391.2
	Others			1,178.6		723.5
		Total accounts receivable	$	1,554.8	$	1,114.7
Unbilled Accounts Receivable:
	U.S. federal government		$	892.7	$	758.8
	Others			756.5		558.2
		Total		1,649.2		1,317.0
		Less: Amounts included in Other long-term assets		(264.9)		(185.0)
		Unbilled Accounts Receivable	$	1,384.3	$	1,132.0

As of December 28, 2012 and December 30, 2011, $264.9 million and $185.0 million, respectively, of Unbilled Accounts Receivable are not expected to become billable within twelve months of the balance sheet date and, as a result, are included as a component of “Other long-term assets.”

As of December 28, 2012 and December 30, 2011, we had financing receivables with contractual terms in excess of one year of $121.4 million and $78.1 million, respectively.

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SEGMENT AND RELATED INFORMATION

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

SEGMENT AND RELATED INFORMATION

		Year Ended
		December 28,		December 30,		December 31,
(In millions, except percentages)		2012		2011		2010
The U.S. Army (1)
	Infrastructure & Environment	$	128.4	$	141.7	$	167.0
	Federal Services		1,495.8		1,351.1		1,408.7
	Energy & Construction		130.8		199.5		346.6
Total U.S. Army		$	1,755.0	$	1,692.3	$	1,922.3
Revenues from the U.S. Army as a percentage of our consolidated revenues			16%		18%		21%
DOE
	Infrastructure & Environment	$	5.6	$	5.9	$	7.2
	Federal Services		27.7		26.8		13.7
	Energy & Construction		956.4		1,236.3		1,182.6
Total DOE		$	989.7	$	1,269.0	$	1,203.5
Revenues from DOE as a percentage of our consolidated revenues			9%		13%		13%
Revenues from the federal market sector as a percentage of our consolidated revenues			40%		49%		49%

NOTE 16. SEGMENT AND RELATED INFORMATION

We operate our business through the following four segments:

• Infrastructure & EnvironmentDivision provides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. federal government, state and local government agencies, and private sector clients in the U.S. and internationally.
• Federal ServicesDivisionprovides services to various U.S. federal government agencies, primarily the Department of Defense. These services include program management, planning, design and engineering, systems engineering and technical assistance, construction and construction management, operations and maintenance, IT services, and decommissioning and closure.
• Energy & ConstructionDivisionprovides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. federal government, state and local government agencies, and private sector clients in the U.S. and internationally.
• Oil & Gas Division provides oilfield services, including rig transportation and fluid hauling services, facility and pipeline construction, module fabrication, and maintenance services, for the oil and gas industry in the U.S. and Canada.

These four segments operate under separate management groups and produce discrete financial information. Their operating results also are reviewed separately by management. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. The information disclosed in our consolidated financial statements is based on the four segments that comprise our current organizational structure.

Prior to the beginning of our 2012 fiscal year, we used segment contribution to assess performance and make decisions concerning resource allocation. Segment contribution was defined as total segment operating income minus noncontrolling interests attributable to that segment, but before allocation of various segment expenses, including stock compensation expense, amortization of some, but not all, intangible assets, goodwill impairment, and other miscellaneous unallocated expenses. Segment operating income represents net income before reductions for income taxes, noncontrolling interests, and interest expense.

Effective at the beginning of our 2012 fiscal year, we adopted a new measurement to assess performance and make decisions concerning resource allocationreferred to as “URS operating income,” which isdefined as segment operating income after reduction for pre-tax noncontrolling interests, but before the reduction of any pre-tax goodwill impairment charge. This new measurement method minimizes the reconciling items between internal profit measurement and GAAP operating income. For comparative purposes, we made reclassifications to the prior year's data to conform them to the current period's presentation.

The following table presentssummarized financial information for our reportable segments. “Inter-segment, eliminations and other” in the following table includes eliminations of inter-segment sales and investments in subsidiaries. The segment balance sheet information presented below is included for informational purposes only. We do not allocate resources based upon the balance sheet amounts of individual segments. Our long-lived assets consist primarily of property and equipment.

		Year Ended
		December 28,		December 30,		December 31,
(In millions)		2012		2011		2010
Revenues
Infrastructure & Environment (1)		$	3,792.1	$	3,760.9	$	3,248.5
Federal Services (2)			2,721.6		2,695.4		2,582.8
Energy & Construction			3,138.1		3,251.1		3,420.6
Oil & Gas (3)			1,475.1		—		—
Inter-segment, eliminations and other			(154.4)		(162.4)		(74.8)
	Total revenues	$	10,972.5	$	9,545.0	$	9,177.1
Equity in income of unconsolidated joint ventures
Infrastructure & Environment (1)		$	4.0	$	3.9	$	2.9
Federal Services (2)			6.4		6.2		5.9
Energy & Construction (4)			93.0		122.1		61.5
Oil & Gas (3)			4.2		—		—
	Total equity in income of unconsolidated joint ventures	$	107.6	$	132.2	$	70.3
URS operating income (loss) (5)
Infrastructure & Environment (1)		$	218.8	$	222.0	$	223.8
Federal Services (2)			249.3		196.8		165.6
Energy & Construction			140.0		134.6		127.7
Oil & Gas (3)			62.3		—		—
Corporate (6)			(99.7)		(79.5)		(71.0)
	Total URS operating income (loss)	$	570.7	$	473.9	$	446.1
Operating income (loss) (7)
Infrastructure & Environment (1)		$	220.9	$	222.0	$	222.9
Federal Services (2)			249.3		(151.5)		165.6
Energy & Construction			254.2		(214.4)		226.9
Oil & Gas (3)			61.2		—		—
Corporate (6)			(99.7)		(79.5)		(71.0)
	Total operating income (loss)	$	685.9	$	(223.4)	$	544.4
Capital expenditures
Infrastructure & Environment (1)		$	43.2	$	51.2	$	30.0
Federal Services (2)			5.5		4.8		5.6
Energy & Construction			19.0		14.8		15.9
Oil & Gas (3)			72.3		—		—
Corporate (6)			13.2		10.9		6.6
	Total capital expenditures	$	153.2	$	81.7	$	58.1
Depreciation and amortization
Infrastructure & Environment (1)		$	56.5	$	55.0	$	42.2
Federal Services (2)			36.3		27.1		21.4
Energy & Construction			47.1		54.3		62.3
Oil & Gas (3)			87.1		—		—
Corporate (6)			6.6		6.3		7.6
	Total depreciation and amortization	$	233.6	$	142.7	$	133.5

• The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.
• The operating results of Apptishave been included in our consolidated results since the acquisition on June1, 2011.
• The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
• In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture's position, finding that its mechanic's lien did not have priority over the senior lenders. As a result of the court's decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million in the third quarter of 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.
• We are providing information regarding URS operating income (loss) by segment because management uses this information to assess performance and make decisions about resource allocation.
• Corporate includes expenses related to corporate functions and acquisition-related expenses.
• The operating income (loss) for the year ended December 30, 2011 included a$825.8milliongoodwill impairment charge. See Note 9, “Goodwill and Intangible Assets” for more information.

Reconciliations of segment contribution to segment operating income (loss) for the years ended December 28, 2012,December 30, 2011, and December 31, 2010 are as follows:

		Year Ended December 28, 2012
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	218.8	$	249.3	$	140.0	$	62.3	$	(99.7)	$	570.7
Noncontrolling interests			2.1		—		114.2		(1.1)		—		115.2
	Operating income (loss)	$	220.9	$	249.3	$	254.2	$	61.2	$	(99.7)	$	685.9
		Year Ended December 30, 2011
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	222.0	$	196.8	$	134.6	$	—	$	(79.5)	$	473.9
Noncontrolling interests			—		—		128.5		—		—		128.5
Goodwill impairment			—		(348.3)		(477.5)		—		—		(825.8)
	Operating income (loss)	$	222.0	$	(151.5)	$	(214.4)	$	—	$	(79.5)	$	(223.4)
		Year Ended December 31, 2010
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	223.8	$	165.6	$	127.7	$	—	$	(71.0)	$	446.1
Noncontrolling interests			(0.9)		—		99.2		—		—		98.3
	Operating income (loss)	$	222.9	$	165.6	$	226.9	$	—	$	(71.0)	$	544.4

Total investments in and advances to unconsolidated joint ventures and property and equipment, net of accumulated depreciation, are as follows:

		December 28,		December 30,
(In millions)		2012		2011
Infrastructure & Environment		$	8.1	$	6.3
Federal Services			5.7		5.1
Energy & Construction			124.5		96.3
Oil & Gas			140.0		—
	Total investments in and advances to unconsolidated joint ventures	$	278.3	$	107.7
Infrastructure & Environment		$	141.0	$	140.5
Federal Services			36.6		46.2
Energy & Construction			60.1		61.8
Oil & Gas			422.9		—
Corporate			26.9		20.9
	Total property and equipment, net of accumulated depreciation	$	687.5	$	269.4

Total assets by segment are as follows:

		December 28,		December 30,
(In millions)		2012		2011
Infrastructure & Environment		$	2,267.5	$	2,287.3
Federal Services			1,645.8		1,582.4
Energy & Construction			2,776.5		2,611.9
Oil & Gas			1,904.4		—
Corporate			192.3		381.0
	Total assets	$	8,786.5	$	6,862.6

Geographic Areas

We provide services in many parts of the world. Some of our services are provided to companies in other countries, but are served by our offices located in the U.S.Generally, revenues related to such services are classified within the geographic area where the services are performed, rather than where the client is located. Our revenues and net property and equipment at cost by geographic area are shown below:

		Years Ended
		December 28,		December 30,		December 31,
(In millions)		2012		2011		2010
Revenues
	United States	$	8,640.2	$	8,329.7	$	8,385.4
	Canada (1)		1,304.0		180.3		162.3
	Other foreign countries		1,056.0		1,065.3		646.9
	Eliminations		(27.7)		(30.3)		(17.5)
Total revenues		$	10,972.5	$	9,545.0	$	9,177.1

• Revenues from Canadaexceeded10% of our consolidated revenues for the year ended December 28, 2012due to our acquisition of Flint in fiscal year 2012.

				December 28,		December 30,
(In millions)				2012		2011
Property and equipment at cost, net (1)
	United States			$	320.4	$	209.5
	International:
		Canada (2)			313.2		8.7
		United Kingdom			24.5		27.2
		Other foreign countries			29.4		24.0
			Total international		367.1		59.9
Total property and equipment at cost, net				$	687.5	$	269.4

• Property and equipment at cost, net is categorized by the location of incorporation of the legal entities.
• Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

Major Customers and Other

Our largest clients are from our federal market sector. Within this sector, we have multiple contracts with our two major customers: the U.S. Army and Department of Energy (“DOE”). For the purpose of analyzing revenues from major customers, we do not consider the combination of all federal departments and agencies as one customer. The different federal agencies manage separate budgets. As such, reductions in spending by one federal agency do not affect the revenues we could earn from another federal agency. In addition, the procurement processes for federal agencies are not centralized, and procurement decisions are made separately by each federal agency. The loss of the federal government, the U.S. Army, or DOE as clients, would have a material adverse effect on our business; however, we are not dependent on any single contract on an ongoing basis. We believe that the loss of any single contract would not have a material adverse effect on our business.

Our revenues from the U.S. Army and DOE by division for the years ended December 28, 2012, December 30, 2011, and December 31, 2010 are presented below:

		Year Ended
		December 28,		December 30,		December 31,
(In millions, except percentages)		2012		2011		2010
The U.S. Army (1)
	Infrastructure & Environment	$	128.4	$	141.7	$	167.0
	Federal Services		1,495.8		1,351.1		1,408.7
	Energy & Construction		130.8		199.5		346.6
Total U.S. Army		$	1,755.0	$	1,692.3	$	1,922.3
Revenues from the U.S. Army as a percentage of our consolidated revenues			16%		18%		21%
DOE
	Infrastructure & Environment	$	5.6	$	5.9	$	7.2
	Federal Services		27.7		26.8		13.7
	Energy & Construction		956.4		1,236.3		1,182.6
Total DOE		$	989.7	$	1,269.0	$	1,203.5
Revenues from DOE as a percentage of our consolidated revenues			9%		13%		13%
Revenues from the federal market sector as a percentage of our consolidated revenues			40%		49%		49%

• The U.S. Army includes U.S. Army Corps of Engineers.

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BILLINGS IN EXCESS OF COSTS AND ACCRUED EARNINGS ON CONTRACTS

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

BILLINGS IN EXCESS OF COSTS AND ACCRUED EARNINGS ON CONTRACTS

NOTE12. BILLINGS IN EXCESS OF COSTS AND ACCRUED EARNINGS ON CONTRACTS

The following table summarizes the components of billings in excess of costs and accrued earnings on contracts:

		December 28,		December 30,
(In millions)		2012		2011
Billings in excess of costs and accrued earnings on contracts		$	211.7	$	216.4
Project-related legal liabilities and other project-related reserves			55.2		38.0
Advance payments negotiated as a contract condition			9.8		24.6
Normal profit liabilities			4.8		12.7
Estimated losses on uncompleted contracts			7.6		19.1
	Total	$	289.1	$	310.8

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ACQUISITION

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

ACQUISITION

NOTE 8. ACQUISITIONS

Flint Acquisition

On May 14, 2012, we acquiredthe outstanding common shares of Flint for C$25.00 per share in cash, or C$1.24 billion (US$1.24 billion based on the exchange rate on the date of acquisition)and paid $110.3 million of Flint's debt prior to the closing of the transaction in exchange for a promissory note from Flint.On the date of acquisition, Flint hadoutstanding Canadian senior notes with a face value ofC$175.0 million (US$175.0 million), in addition to $31.6 million of other indebtedness.Flintprovides construction and maintenance services to clients in the oil and gas industry.This acquisition expanded our presence in the oil and gas market sector, most notably in the North American unconventional oil and gas segments of this market. Flint joined URS as our new Oil & Gas Division and, at the date of acquisition, had approximately 11,000 employees with a network of approximately 80 office locations in North America. Our condensed consolidated financial statements include the operating results of Flint after the date of acquisition, which are included as the results of our Oil & Gas Division.

The following table presents a preliminary allocation of Flint's identifiable assets acquired and liabilities assumed based on the estimates of their fair values as of the acquisition date. These estimates are subject to revision, which may result in adjustments to the values presented below. We expect to finalize these amounts within 12 months from the acquisition date. We do not expect any adjustments to be material.

Preliminary allocation of purchase price:
(In millions)
Identifiable assets acquired and liabilities assumed:
	Cash and cash equivalents			$	4
	Trade and other receivables				544
	Inventory				61
	Other current assets				32
	Investments in and advances to unconsolidated joint ventures				147
	Property and equipment				420
	Other long-term assets				10
	Identifiable intangible assets:
		Customer relationships, contracts and backlog			159
		Trade names			94
		Other			13
			Total amount allocated to identifiable intangible assets		266
	Current liabilities				(244)
	Net deferred tax liabilities				(77)
	Long-term debt				(236)
	Other long-term liabilities				(31)
			Total identifiable net assets acquired		896
Goodwill					456
			Total purchase price	$	1,352

Intangible assets.  Intangible assets include customer relationships, contracts and backlog, trade name and other intangible assets associated with the Flint acquisition. For the year ended December 28, 2012, we recorded $34.1million of amortization of intangible assets.

Customer relationships represent existing contracts and the underlying customer relationships and backlog. Customer relationships have estimated useful lives ranging from one to 13 yearsand are amortized based on the period over which the economic benefits of the intangible assets are expected to be realized.

Trade names represent the fair values of the acquired trade names and trademarks. The estimated useful lives of the trade names are40 years.Other intangible assets represent the fair values of the existing non-compete agreements, supply contract agreement, and patents, which have estimated useful lives ranging from one to 13 years. We amortize the fair values of these intangible assets based on the period over which the economic benefits of the intangible assets are expected to be realized.

Goodwill.  Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The factors that contributed to the recognition of goodwill from the acquisition of Flint include acquiring a workforce with capabilities in the Oil & Gas market and cost savings opportunities. This acquisition generated $456 million of goodwill, which isincluded in our Oil & Gas Division. None of the total acquired goodwill is expected to be tax deductible.

Investments in and advances to unconsolidated joint ventures.  As a result of the Flint acquisition, we hold a 50% voting and economic interest in a joint venture which provides operations, maintenance, asset management and project management services to the Canadian energy sector. The fair value of our investment in this joint venture at the acquisition date was higher than the underlying equity interest. This difference of $128.5million includes $38.0 million representing intangible assets, and the remaining amount representing goodwill. The intangible assets are being amortized, as a reduction to earnings against the equity in income of this unconsolidated joint venture, over a period ranging from three to 40 years. For the year ended December 28, 2012, amortization of these intangible assets was $5.9 million.

Acquisition-related expenses. In connection with the acquisitionof Flint, we recognized $16.1 million for the yearended December 28, 2012 in “Acquisition-related expenses” on our Consolidated Statements of Operations.

The acquisition-related expenses consisted of investment banking, legal, tax and accounting fees, and other external costs directly related to the acquisition.

Flint's revenues and operating income included in the Consolidated Statement of Operations for the year ended December 28, 2012 from the May 14, 2012 acquisition date to the end of the year amounted to$1.5billion and $61.2million, respectively.

Proforma results. The unaudited financial information in the table below summarizes the combined results of the operations of URS Corporation and Flint for the years ended December 28, 2012 and December 30, 2011, on a pro forma basis, as though the companies had been combined as of January 1, 2011, the beginning of the first period presented. The pro forma financial information includes the accounting effects of the business combination, including adjustments to the amortization of intangible assets, depreciation of property, plant and equipment, interest expense, adjustments to conform to U.S. GAAP, new compensation agreements, and foreign currency gains or losses arising from internal financing arrangements. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at January 1, 2011 nor should it be taken as indicative of our future consolidated results of operations.

		Year Ended
(In millions, except per share data)		December 28, 2012		December 30, 2011
Revenues		$	11,785.8	$	11,128.7
Net income (loss) including noncontrolling interests		$	409.1	$	(429.8)
Net income (loss) attributable to URS			292.9		(558.3)
	Basic EPS	$	3.94	$	(7.22)
	Diluted EPS	$	3.93	$	(7.22)

These amounts have been calculated to reflect the additional depreciation, amortization, and interest expense that would have been incurred assuming the fair value adjustments and borrowings occurred on January 1, 2011, together with the consequential tax effects. In addition, these amounts exclude costs incurred that are directly attributable to the acquisition and do not have a continuing impact on the combined companies operating results. Included in these costs are severance, advisory and legal costs, net of the consequential tax effects.

The table below shows the material pre-tax, nonrecurring adjustment in the pro forma financial informationfor the years ended December 28, 2012 and December 30, 2011:

Pre-tax, nonrecurring adjustment (In millions)	Year Ended		Year Ended
		December 28, 2012		December 30, 2011 (1)
Acquisition-related expenses	$	27.7	$	(27.5)

• Included in the pro forma results for the year ended December 30, 2011 is a nonrecurring adjustment related to URS and Flintacquisition-related expenses. These expenses were included in the fiscal year 2011 pro forma results as if the acquisition occurred at the beginning of that fiscal year.

Apptis Acquisition

On June 1, 2011, we acquiredApptis, for a purchase price of approximately $283 million. Apptis provides IT services to the U.S. federal government. The addition of Apptis expands our capabilities in the federal IT market.

For the fiscal year 2011, our consolidated financial statements include the operating results of Apptis, which are included under our Federal Services Division, from the date of acquisition through December 30, 2011. Pro forma results of Apptis have not been presented because the effect of this acquisition is not material to our consolidated financial results.

The following table presents allocations of Apptis' identifiable assets acquired and liabilities assumed based on the estimate of its fair value as of the acquisition date:

Allocation of purchase price:
(In millions)					Apptis
Identifiable assets acquired and liabilities assumed:
	Cash and cash equivalents				$	18
	Trade and other receivables					60
	Other current assets					8
	Property and equipment					20
	Other long-term assets					10
	Identifiable intangible assets:
		Customer relationships, contracts and backlog				60
		Trade name and other				4
			Total amount allocated to identifiable intangible assets			64
	Current liabilities					(76)
	Net deferred tax liabilities					(5)
	Long-term liabilities					(16)
				Total identifiable net assets acquired		83
	Goodwill					200
				Total purchase price	$	283

Intangible assets.  Intangible assets include customer relationships, contracts and backlog, trade name and other. Customer relationships represent existing contracts and the underlying customer relationships and backlog. We amortize the fair values of these assets based on the period over which the economic benefits of the intangible assets are expected to be realized. Trade name and other intangible assets are amortized using the straight-line method over their estimated useful lives.

Goodwill.  Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets.

The factors that contributed to the recognition of goodwill from the acquisition of Apptis include acquiring a workforce with capabilities in the federal IT market and cost savings opportunities. This acquisition generated $200 million of goodwill, which isincluded in our Federal Services Division. Of the total acquired goodwill, approximately $64 million is expected to be tax deductible.

Acquisition-related expenses. In connection with this acquisition, we recognized $1.0 million of expenses for the year ended December 30, 2011,in “Acquisition-related expenses” on our Consolidated Statements of Operations. These expenses included legal fees, bank fees, consultation fees, travel expenses, and other miscellaneous direct and incremental administrative expenses associated with this acquisition.

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EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFIT PLANS (DETAILS) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 31, 2010
Deferred compensation plans
Accrued benefit amounts for deferred compensation plans	$ 23.2	$ 21.6
Multiemployer pension plans [Abstract]
Contributions to multiemployer pension plans	48.2	40.7	50.8
Amounts recognized in our Consolidated Balance Sheets consist of:
Accrued benefit liability included in other long-term liabilities	300.9	276.0
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss (gain)	45.6	80.9	5.3
Amortization or curtailment recognition of prior service credit	(7.4)	(4.1)	(0.4)
Defined Contribution Pension Domestic [Member]
Change in plan assets:
Employer contributions	91.0	48.1	83.0
Other defined benefit plans disclosures (Textuals) [Abstract]
Cash contributions	91.0	48.1	83.0
Defined Contribution Pension Foreign [Member]
Change in plan assets:
Employer contributions	35.9	20.2	13.1
Other defined benefit plans disclosures (Textuals) [Abstract]
Cash contributions	35.9	20.2	13.1
Pension Plans, Defined Benefit [Member]
Change in plan assets:
Fair value of plan assets at end of year	645.0	570.7
Estimated future employer contributions in next fiscal year (Textuals) [Abstract]
Estimated future employer contributions in next fiscal year		30.6
Pension and other post-retirement benefit plans amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year (Textuals) [Abstract]
Estimated portions of the net loss in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost		15.5
Estimated portions of the prior service credit in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost		0.4
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	645.0	570.7
Pension Plans, Defined Benefit [Member] | Cash and cash equivalents [Member]
Change in plan assets:
Fair value of plan assets at end of year	21.0	5.7
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	21.0	5.7
Pension Plans, Defined Benefit [Member] | US equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	74.4	78.8
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	74.4	78.8
Pension Plans, Defined Benefit [Member] | International equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	166.8	162.6
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	166.8	162.6
Pension Plans, Defined Benefit [Member] | Fixed income securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	264.9	223.3
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	264.9	223.3
Pension Plans, Defined Benefit [Member] | International property fund [Member]
Change in plan assets:
Fair value of plan assets at end of year	117.9	100.3
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	117.9	100.3
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 1 [Member]
Change in plan assets:
Fair value of plan assets at end of year	8.0	2.3
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	8.0	2.3
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 1 [Member] | Cash and cash equivalents [Member]
Change in plan assets:
Fair value of plan assets at end of year	8.0	2.3
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	8.0	2.3
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member]
Change in plan assets:
Fair value of plan assets at end of year	637.0	568.4
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	637.0	568.4
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | Cash and cash equivalents [Member]
Change in plan assets:
Fair value of plan assets at end of year	13.0	3.4
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	13.0	3.4
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | US equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	74.4	78.8
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	74.4	78.8
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | International equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	166.8	162.6
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	166.8	162.6
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed income securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	264.9	223.3
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	264.9	223.3
Pension Plans, Defined Benefit [Member] | Fair Value, Inputs, Level 2 [Member] | International property fund [Member]
Change in plan assets:
Fair value of plan assets at end of year	117.9	100.3
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	117.9	100.3
Domestic Pension Plans [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	383.3	350.2
Service cost	7.5	6.8	6.1
Interest cost	18.9	19.0	18.5
Plan amendment		(1.1)
Benefits paid and expenses	(16.6)	(16.0)
Actuarial (gain) loss	50.3	24.4
Benefit obligation at end of year	443.4	383.3	350.2
Change in plan assets:
Fair value of plan assets at beginning of year	236.4	205.4
Actual gain (loss) on plan assets	31.4	13.6
Employer contributions	18.4	28.5
Employer direct benefit payments	4.6	4.9
Benefits paid and expenses	(16.6)	(16.0)
Fair value of plan assets at end of year	274.2	236.4	205.4
Underfunded status reconciliation:
Underfunded status	169.2	146.9
Amounts recognized in our Consolidated Balance Sheets consist of:
Accrued benefit liability included in current liabilities	5.1	4.9
Accrued benefit liability included in other long-term liabilities	164.1	142.0
Net amount recognized	169.2	146.9
Amounts recognized in accumulated other comprehensive income consist of:
Prior service income	0.6	3.6
Net gain (loss)	(140.5)	(113.6)
Net amount recognized	(139.9)	(110.0)
Additional information:
Accumulated benefit obligation	437.6	376.3
Weighted-average assumptions used to determine benefit obligations at year end:
Discount rate	4.02%	5.05%
Rate of compensation increase	4.50%	4.50%
Net periodic pension costs:
Service cost	7.5	6.8	6.1
Interest cost	18.9	19.0	18.5
Expected return on plan assets	(17.7)	(16.4)	(15.9)
Amortization of prior service costs	(3.0)	(3.2)	(3.2)
Recognized actuarial loss	9.8	7.4	3.7
Total net periodic pension costs	15.5	13.6	9.2
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Prior service cost		(1.1)
Net loss (gain)	36.7	27.3	22.5
Amortization or curtailment recognition of prior service credit	3.0	3.2	3.2
Amortization or settlement recognition of net loss	(9.8)	(7.4)	(3.7)
Total recognized in other comprehensive loss (income)	29.9	22.0	22.0
Total recognized in net periodic costs and other comprehensive loss (income) [Abstract]]
Total	45.4	35.6	31.2
Weighted-average assumptions used to determine net periodic cost for years ended:
Discount rate	5.05%	5.55%	6.05%
Rate of compensation increase	4.50%	4.50%	4.50%
Expected long-term rate of return on plan assets	7.34%	7.44%	7.89%
Measurement dates	2011-12-30	2010-12-31	2010-01-01	[1]
Other defined benefit plans disclosures (Textuals) [Abstract]
Cash contributions	18.4	28.5
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	100.00%
Estimated future benefit payments to be paid out in the next ten years [Abstract]
Year one	20.1
Year two	37.0
Year three	21.8
Year four	22.4
Year five	23.1
Next five fiscal years thereafter	123.5
Total	247.9
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	274.2	236.4	205.4
Domestic Pension Plans [Member] | Equity securities [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	50.00%
Domestic Pension Plans [Member] | Debt securities [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	50.00%
Foreign Pension Plans [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	447.9	418.6
Service cost	0.6	0.6	0.3	[1]
Interest cost	22.6	24.4	7.7	[1]
Employee contributions	0.4	0.5
Benefits paid and expenses	(14.9)	(15.5)
Exchange rate changes	20.8	(3.9)
Actuarial (gain) loss	8.5	23.2
Benefit obligation at end of year	485.9	447.9	418.6
Change in plan assets:
Fair value of plan assets at beginning of year	334.3	345.8
Actual gain (loss) on plan assets	25.6	(2.5)
Employer contributions	9.7	7.7
Employee contributions	0.4	0.5
Exchange rate changes	15.7	(1.7)
Benefits paid and expenses	(14.9)	(15.5)
Fair value of plan assets at end of year	370.8	334.3	345.8
Underfunded status reconciliation:
Underfunded status	115.1	113.6
Amounts recognized in our Consolidated Balance Sheets consist of:
Accrued benefit liability included in other long-term liabilities	115.1	113.6
Net amount recognized	115.1	113.6
Amounts recognized in accumulated other comprehensive income consist of:
Net gain (loss)	(41.6)	(34.8)
Net amount recognized	(41.6)	(34.8)
Additional information:
Accumulated benefit obligation	470.7	435.1
Weighted-average assumptions used to determine benefit obligations at year end:
Discount rate	4.80%	5.00%
Rate of compensation increase	2.80%	3.00%
Net periodic pension costs:
Service cost	0.6	0.6	0.3	[1]
Interest cost	22.6	24.4	7.7	[1]
Expected return on plan assets	(22.2)	(22.9)	(7.2)	[1]
Recognized actuarial loss			0.1	[1]
Total net periodic pension costs	1.0	2.1	0.9	[1]
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss (gain)	5.1	48.6	(17.4)	[1]
Effect of exchange rate changes in amounts included in accumulated other comprehensive income	1.7	(1.9)	0.1	[1]
Amortization or settlement recognition of net loss			(0.1)	[1]
Total recognized in other comprehensive loss (income)	6.8	46.7	(17.4)	[1]
Total recognized in net periodic costs and other comprehensive loss (income) [Abstract]]
Total	7.8	48.8	(16.5)	[1]
Weighted-average assumptions used to determine net periodic cost for years ended:
Discount rate	5.00%	5.70%	5.45%	[1]
Rate of compensation increase	3.00%	3.45%	3.45%	[1]
Expected long-term rate of return on plan assets	7.00%	6.96%	6.67%	[1]
Measurement dates	2011-12-30	2010-12-31	2010-01-01
Other defined benefit plans disclosures (Textuals) [Abstract]
Cash contributions	9.7	7.7
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	100.00%
Estimated future benefit payments to be paid out in the next ten years [Abstract]
Year one	15.1
Year two	15.4
Year three	15.9
Year four	16.3
Year five	16.7
Next five fiscal years thereafter	90.4
Total	169.8
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	370.8	334.3	345.8
Foreign Pension Plans [Member] | Equity securities [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	28.00%
Foreign Pension Plans [Member] | Debt securities [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	35.00%
Foreign Pension Plans [Member] | Real estate [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	6.00%
Foreign Pension Plans [Member] | Hedge funds [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	26.00%
Foreign Pension Plans [Member] | Other [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	5.00%
Post-retirement Benefit Plans [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	41.9	40.1
Service cost	0.2	0.1	0.1
Interest cost	1.9	2.0	2.2
Employee contributions	2.0	2.3
Benefits paid and expenses	(5.8)	(7.0)
Actuarial (gain) loss	3.4	4.4
Benefit obligation at end of year	43.6	41.9	40.1
Change in plan assets:
Fair value of plan assets at beginning of year	3.2	3.6
Actual gain (loss) on plan assets	(0.2)	(0.4)
Employer contributions		0.5
Employer direct benefit payments	3.9	4.2
Employee contributions	2.0	2.3
Benefits paid and expenses	(5.8)	(7.0)
Fair value of plan assets at end of year	3.1	3.2	3.6
Underfunded status reconciliation:
Underfunded status	40.5	38.7
Amounts recognized in our Consolidated Balance Sheets consist of:
Accrued benefit liability included in current liabilities	3.3	3.2
Accrued benefit liability included in other long-term liabilities	37.2	35.5
Net amount recognized	40.5	38.7
Amounts recognized in accumulated other comprehensive income consist of:
Net gain (loss)	(7.3)	(4.1)
Net amount recognized	(7.3)	(4.1)
Weighted-average assumptions used to determine benefit obligations at year end:
Discount rate	3.48%	4.69%
Net periodic pension costs:
Service cost	0.2	0.1	0.1
Interest cost	1.9	2.0	2.2
Expected return on plan assets	(0.2)	(0.2)	(0.2)
Recognized actuarial loss	0.6	(0.1)	(0.2)
Total net periodic pension costs	2.5	1.8	1.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss (gain)	3.8	5.0	0.2
Amortization or settlement recognition of net loss	(0.6)	0.1	0.2
Total recognized in other comprehensive loss (income)	3.2	5.1	0.4
Total recognized in net periodic costs and other comprehensive loss (income) [Abstract]]
Total	5.7	6.9	2.3
Weighted-average assumptions used to determine net periodic cost for years ended:
Discount rate	4.69%	5.23%	5.72%
Expected long-term rate of return on plan assets	7.50%	7.50%	8.00%
Measurement dates	2011-12-30	2010-12-31	2010-01-01
Other defined benefit plans disclosures (Textuals) [Abstract]
Cash contributions		0.5
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	100.00%
Estimated future employer contributions in next fiscal year (Textuals) [Abstract]
Estimated future employer contributions in next fiscal year		3.6
Pension and other post-retirement benefit plans amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year (Textuals) [Abstract]
Estimated portions of the net loss in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost		0.5
Estimated portions of the prior service credit in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost		0
Estimated future benefit payments to be paid out in the next ten years [Abstract]
Year one	3.6
Year two	3.6
Year three	3.7
Year four	3.6
Year five	3.6
Next five fiscal years thereafter	15.8
Total	33.9
Assumed blended health care cost trend rates at year-end:
Health care cost trend rate assumed for next year	7.94%	7.97%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.94%	4.94%
Year that the rate reaches the ultimate trend rate	2024	2024
Effect of one-percentage point change in assumed health care cost trend rates [Abstract]
Increase on total of service and interest cost components	0.1
Decrease on total of service and interest cost components	0.1
Increase on post-retirement benefit obligation	1.9
Decrease on post-retirement benefit obligation	1.7
Medicare Part D subsidy receipts
Medicare Part D subsidy receipts		0.4
Estimated Medicare subsidy receipts in the next ten years
Year one	0.4
Year two	0.4
Year three	0.4
Year four	0.3
Year five	0.3
Next five fiscal years thereafter	1.1
Total	2.9
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	3.1	3.2	3.6
Post-retirement Benefit Plans [Member] | Equity securities [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	50.00%
Post-retirement Benefit Plans [Member] | US equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	0.8	1.0
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	0.8	1.0
Post-retirement Benefit Plans [Member] | International equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	0.7	0.6
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	0.7	0.6
Post-retirement Benefit Plans [Member] | International property fund [Member]
Change in plan assets:
Fair value of plan assets at end of year	1.6	1.6
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	1.6	1.6
Post-retirement Benefit Plans [Member] | Debt securities [Member]
Weighted-average target asset allocation for the defined benefit and post-retirement benefit plans
Weighted-average target asset allocation percentage	50.00%
Post-retirement Benefit Plans [Member] | Fair Value, Inputs, Level 2 [Member]
Change in plan assets:
Fair value of plan assets at end of year	3.1	3.2
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	3.1	3.2
Post-retirement Benefit Plans [Member] | Fair Value, Inputs, Level 2 [Member] | US equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	0.8	1.0
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	0.8	1.0
Post-retirement Benefit Plans [Member] | Fair Value, Inputs, Level 2 [Member] | International equity securities [Member]
Change in plan assets:
Fair value of plan assets at end of year	0.7	0.6
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	0.7	0.6
Post-retirement Benefit Plans [Member] | Fair Value, Inputs, Level 2 [Member] | International property fund [Member]
Change in plan assets:
Fair value of plan assets at end of year	1.6	1.6
Fair values of defined benefit plans and post-retirement benefit plan assets [Abstract]
Fair value of plan assets	$ 1.6	$ 1.6

[1] Measurement date for the two Scott Wilson plans was September 10, 2010, the acquisition date. Net periodic pension costs and the amounts recognized in other comprehensive income (loss) for the Scott Wilson plans were partially included in the year ended December 31, 2010, as we completed the acquisition in September 2010.

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JOINT VENTURES

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

JOINT VENTURES

NOTE 6. JOINT VENTURES

The following are examples of activities currently being performed by our significant consolidated and unconsolidated joint ventures:

• Engineering, procurement and construction of a concrete dam;
• Liquid waste management services, including the decontamination of a former nuclear fuel reprocessing facility and nuclear hazardous waste processing;
• Management of ongoing tank cleanup effort, including retrieving, treating, storing and disposing of nuclear waste that is stored at tank farms;
• Management and operation services, including commercial operations, decontamination, decommissioning, and waste management of a nuclear facility in the United Kingdom (“U.K.”); and
• Operations, maintenance, asset management services to the Canadian energy sector.

In accordance with the current consolidation standard, we analyzed all of our joint ventures and classified them into two groups:

• Joint ventures that must be consolidated because they are either not VIEs and we hold the majority voting interest, or because they are VIEs of which we are the primary beneficiary; and
• Joint ventures that do not need to be consolidated because they are either not VIEs and we do not hold a majority voting interest, or because they are VIEs of which we are not the primary beneficiary.

We perform a quarterly review of our joint ventures to determine whether there were any changes in the status of the VIEs or changes to the primary beneficiary designation of each VIE. We determined that no such changes occurred during the year ended December 28, 2012.

In the table below, we have aggregated financial information relating to our VIEs because their nature and risk and reward characteristics are similar. None of our current joint ventures that meets the characteristics of a VIE is individually significant to our consolidated financial statements.

Consolidated Joint Ventures

The following table presents the total assets and liabilities of our consolidated joint ventures:

			December 28,		December 30,
(In millions)			2012		2011
Cash and cash equivalents			$	80.1	$	91.4
Net accounts receivable				282.2		246.8
Other current assets				2.9		1.5
Noncurrent assets				143.3		103.4
		Total assets	$	508.5	$	443.1
Accounts and subcontractors payable			$	185.0	$	151.9
Billings in excess of costs and accrued earnings on contracts				8.7		35.2
Accrued expenses and other				40.0		30.6
Noncurrent liabilities				22.7		15.2
	Total liabilities			256.4		232.9
Total URS equity				110.2		103.0
Noncontrolling interests				141.9		107.2
	Total owners’ equity			252.1		210.2
		Total liabilities and owners’ equity	$	508.5	$	443.1

Total revenues of the consolidated joint ventures were $1.6billion,$1.7billion, and $1.7billionfor the years ended December 28, 2012,December 30, 2011, and December 31, 2010, respectively.

The assets of our consolidated joint ventures are restricted for use only by the particular joint venture and are not available for our general operations.

Unconsolidated Joint Ventures

We use the equity method of accounting for our unconsolidated joint ventures. Under the equity method, we recognize our proportionate share of the net earnings of these joint ventures as a single line item under “Equity in income of unconsolidated joint ventures” in our Consolidated Statements of Operations.

The table below presents financial information, derived from the most recent financial statements provided to us, in aggregate, for our unconsolidated joint ventures:

(In millions)	Unconsolidated VIEs
December 28, 2012
Current assets	$	594.1
Noncurrent assets	$	23.8
Current liabilities	$	372.5
Noncurrent liabilities	$	7.8
December 30, 2011
Current assets	$	457.6
Noncurrent assets	$	8.8
Current liabilities	$	288.1
Noncurrent liabilities	$	0.1
For the year ended December 28, 2012 (1)
Revenues	$	1,662.2
Cost of revenues	$	(1,440.6)
Income from continuing operations before tax	$	221.6
Net income	$	206.0
For the year ended December 30, 2011 (1, 2)
Revenues	$	1,498.0
Cost of revenues	$	(1,201.5)
Income from continuing operations before tax	$	296.5
Net income	$	274.7
For the year ended December 31, 2010 (1, 2)
Revenues	$	1,409.7
Cost of revenues	$	(1,225.2)
Income from continuing operations before tax	$	184.5
Net income	$	169.6

• Income from unconsolidated U.S. joint ventures is generally not taxable in most tax jurisdictions in the U.S. The tax expenses on our other unconsolidated joint ventures are primarily related to foreign taxes.
• In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture's position, finding that its mechanic's lien did not have priority over the senior lenders. As a result of the court's decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

For the years ended December 28, 2012, December 30, 2011, and December 31, 2010, we received $88.7million, $107.3 million, and $92.5 million, respectively, of distributions from unconsolidated joint ventures.

Maximum Exposure to Loss

In addition to potential losses arising out of the carrying values of the assets and liabilities of our unconsolidated joint ventures, our maximum exposure to loss also includes performance assurances and guarantees we sometimes provide to clients on behalf of joint ventures that we do not directly control. We enter into these guarantees primarily to support the contractual obligations associated with the joint ventures' projects. The potential payment amount of an outstanding performance guarantee is typically the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts. However, the nature of these costs are such that we are not able to estimate amounts that may be required to be paid in excess of estimated costs to complete contracts and, accordingly, the exposure to loss as a result of these performance guarantees cannot be calculated.

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PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

PROPERTY AND EQUIPMENT

NOTE 7. PROPERTY AND EQUIPMENT

Our property and equipment consisted of the following:

		December 28,		December 30,
(In millions)		2012		2011
Construction and mining equipment		$	266.4	$	95.3
Computer software			219.5		186.3
Computer hardware			198.2		186.8
Vehicles and automotive equipment			172.2		7.7
Leasehold improvements			130.1		109.0
Land and buildings			114.1		9.2
Furniture and fixtures			97.7		91.5
Other equipment			72.4		70.8
Construction in progress			15.6		0.2
			1,286.2		756.8
Accumulated depreciation and amortization			(598.7)		(487.4)
	Property and equipment at cost, net (1)	$	687.5	$	269.4

• The unamortized computer software costs were $71.1 million and $60.8 million, respectively, as of December 28, 2012 and December 30, 2011. The increases in property and equipment were mainly due to our acquisition of Flint.

Property and equipment was depreciated by using the following estimated useful lives:

	Estimated Useful Lives
Computer software and hardware and other equipment	3 – 10 years
Vehicles and automotive equipment	3 – 12 years
Construction and mining equipment	3 – 15 years
Furniture and fixtures	3 – 10 years
Leasehold improvements (1)	1 – 20 years
Buildings	10 – 45 years

• Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less.

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GOODWILL

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

GOODWILL

NOTE9.GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following tables present the changes in goodwill allocated to our reportable segments and reporting units from December 31, 2010 toDecember 28, 2012:

(In millions)			Goodwill Balance as of December 31, 2010		Acquisitions		Goodwill Impairment		Other Adjustments (1)		Goodwill Balance as of December 30, 2011
Infrastructure & Environment Operating Segment			$	754.6	$	12.2	$	—	$	(8.7)	$	758.1
Federal Services Operating Segment				854.8		202.1		(348.3)		—		708.6
Within the Energy & Construction Operating Segment:
	Global Management and Operations Services Group			565.4		—		(160.0)		—		405.4
	Civil Construction & Mining Group			293.9		—		(81.6)		—		212.3
	Industrial/Process Group			189.4		—		(71.4)		—		118.0
	Power Group			735.1		—		(164.5)		—		570.6
		Total		1,783.8		—		(477.5)		—		1,306.3
Total			$	3,393.2	$	214.3	$	(825.8)	$	(8.7)	$	2,773.0
(In millions)			Goodwill Balance as of December 30, 2011		Acquisitions		Goodwill Impairment		Other Adjustments (1)		Goodwill Balance as of December 28, 2012
Infrastructure & Environment Operating Segment			$	758.1	$	—	$	—	$	14.8	$	772.9
Federal Services Operating Segment				708.6		—		—		1.7		710.3
Within the Energy & Construction Operating Segment:
	Global Management and Operations Services Group			405.4		—		—		—		405.4
	Civil Construction & Mining Group			212.3		—		—		—		212.3
	Industrial/Process Group			118.0		—		—		—		118.0
	Power Group			570.6		—		—		—		570.6
		Total		1,306.3		—		—		—		1,306.3
Oil & Gas Operating Segment				—		456.3		—		1.3		457.6
Total			$	2,773.0	$	456.3	$	—	$	17.8	$	3,247.1

• For the year ended December 30, 2011, “Other Adjustments” include an adjustment for the final allocation of our purchase price of Scott Wilson of $5.3 million, an adjustment resulting from the sale of a business of $2.2 million, and an adjustment for foreign currency translation of $1.2 million.For the year ended December 28, 2012, “Other adjustments” includean adjustment for foreign currency translation of $16.1 million, and an adjustment for the final allocation of our purchase price of Apptis of $1.7 million.

The net change in the carrying amount of goodwill for the year ended December 28, 2012 was primarily due to our acquisition of Flint. See Note 8, “Acquisitions,” for more information regarding our acquisition of Flint.

The net change in the carrying amount of goodwill for the year ended December 30, 2011 was primarily due to the following:

• Our acquisitions of Apptisand twosmall engineering companies.See Note 8, “Acquisitions,” for more information regarding our acquisition of Apptis.
• A goodwill impairment charge of $825.8 million for the year ended December 30, 2011. See “Goodwill Impairment Review” below for a more detailed discussion.

Goodwill Impairment Review

We have identified seven reporting units. In determining our reporting units, we considered (i) whether an operating segment or a component of an operating segment is a business, (ii) whether discrete financial information is available, (iii) whether the financial information is regularly reviewed by management of the operating segment, and (iv) how the operations are managed or how an acquired entity is integrated in the business operations. During our fiscal year 2012, we added a new division resulting from the acquisition of Flint and concluded that the following are our reporting units:

• The Infrastructure & Environment Operating Segment(the “IE reporting unit”)
• The Federal Services Operating Segment
• Within the Energy & Construction Operating Segment:
• Global Management and Operations Services Group
• Civil Construction and Mining Group
• Industrial/Process Group
• Power Group
• The Oil & Gas Operating Segment

The fair value measurements were calculated using unobservable inputs to our discounted cash flows, which are classified as Level 3 within the fair value hierarchy. To arrive at the cash flow projections used in the calculation of fair values for our goodwill impairment review, we use estimates of economic and market activity for the next ten years. The key assumptions we used to estimate the fair values of our reporting units are:

• Revenue growth rates;
• Operating margins;
• Capital expenditure needs;
• Working capital requirements;
• Discount rates; and
• Terminal value capitalization rate (“Capitalization Rate”)

Of the key assumptions, the discount rates and the Capitalization Rate are market-driven. These rates are derived from the use of market data and employment of the weighted-average cost of capital. The company-dependent key assumptions are the revenue growth rates and the projected operating margins and are subject to much greater influence from our actions. The company-dependent key assumptions reflect the influence of other potential assumptions, since the assumptions we identified that affect the projected operating results would ultimately affect either the revenue growth or the profitability (operating margin) of the reporting unit. For example, any adjustment to contract volume and pricing would have a direct impact on revenue growth, and any adjustment to the reporting unit's cost structure or operating leverage would have a direct impact on the profitability of the reporting unit. For the purpose of the income approach, we used discount rates that are commensurate with the risk and uncertainty inherent in the respective reporting units and in our internally-developed forecasts. Actual results may differ from those assumed in our forecasts and changes in assumptions or estimates could materially affect the determination of the fair value of a reporting unit, and therefore could affect the amount of potential impairment.

When performing our impairment analysis, we also reconcile the sum of the fair values of our reporting units with our market capitalization to determine if the sum reasonably reconciles with the external market indicators. If our reconciliation indicates a significant difference between our external market capitalization and the sum of thefair values of our reporting units, we review and adjustthe assumptions employed in our analysis, and examine if the implied control premium is reasonable in light of current market conditions.

Inherent in our development of the present value of future cash flow projections are assumptions and estimates derived from a review of our expected revenue growth rates, profit margins, business plans, cost of capital and tax rates. We also make assumptions about future market conditions, market prices, interest rates, and changes in business strategies. Changes in our assumptions or estimates could materially affect the determination of the fair value of a reporting unit and, therefore, could eliminate the excess of fair value over the carrying value of a reporting unit entirely and, in some cases, could result in impairment. Such changes in assumptions could be caused by a loss of one or more significant contracts, reductions in government and/or private industry spending, including federal government sequestration, or a decline in the demand of our services due to changing economic conditions. Given the contractual nature of our business, if we are unable to win or renew contracts; unable to estimate and control our contract costs; fail to adequately perform to our clients' expectations; fail to procure third-party subcontractors, heavy equipment and materials; or fail to adequately secure funding for our projects, our profits, revenues and growth over the long-term would decline and such a decline could significantly affect the fair value assessment of our reporting units and cause our goodwill to become impaired.

Goodwill was allocated to the reporting units based upon the respective fair values of the reporting units at the time of the various acquisitions that gave rise to the recognition of goodwill.

We perform our annual goodwill impairment review as of the end of the first month following our September reporting period and also perform interim impairment reviews if triggering events occur. Our 2012 annual review, performed as of October 26, 2012, did not indicate any further adjustment to our goodwill. No events or changes in circumstances have occurred that would indicate any additional impairment adjustment of goodwill since our annual testing date. We continue to monitor the recoverability of our goodwill.

During fiscal year 2011, our market capitalization was reduced due to the stock market volatility and declines in our stock price. For the year ended December 30, 2011, we recorded goodwill impairment charges in five of our reporting units totaling $825.8 million ($732.2 million after tax). There was no goodwill impairment for any of our reporting units during the years ended December 28, 2012 and December 31, 2010.These non-cash charges reduced goodwill recorded in connection with previous acquisitions and did not impact our overall business operations.

Declines in our stock price or in the values of other market participants in the construction and engineering industry, continued deterioration of market and economic conditions that may adversely impact our ability to meet our projected results, declines in our stock price caused by continued volatility in the financial markets that may result in increases in our weighted-average cost of capital or other inputs to our goodwill assessment, and the occurrence of events that may reduce the fair value of a reporting unit below its carrying amount, such as the sale of a significant portion of one or more of our reporting units could result in future impairment charges to our reporting units.

Our annual impairment test indicated that the fair values of the reporting units exceeded their carrying values, thereby resulting in no indication of impairment. Allof our reporting units had fair values in excess of carrying values by more than 10% as follows:

(in millions)			Goodwill Balance as of December 28, 2012		Reporting Unit Fair Value		Reporting Unit Carrying Value		Percent Above Carrying Value
Infrastructure & Environment Operating Segment			$	772.9	$	1,512.0	$	1,341.5		12.7%
Federal Services Operating Segment				710.3		1,218.0		1,017.0		19.8%
Within the Energy & Construction Operating Segment:
	Global Management and Operations Services Group			405.4		834.0		677.0		23.2%
	Civil Construction & Mining Group			212.3		356.0		267.9		32.9%
	Industrial/Process Group			118.0		263.0		157.8		66.7%
	Power Group			570.6		789.0		633.3		24.6%
		Total		1,306.3		2,242.0		1,736.0		29.1%
Oil & Gas Operating Segment				457.6		1,712.0		1,502.8		13.9%
Total			$	3,247.1	$	6,684.0	$	5,597.3		19.4%

Intangible Assets

Intangible assets are comprised of customer relationships, contracts, backlog, trade name, favorable leases and other. As of December 28, 2012 and December 30, 2011, the cost and accumulated amortization of our intangible assets were as follows:

(In millions)		Customer Relationships, Contracts, and Backlog		Trade Name		Favorable Leases and Other		Total
Balance as of December 31, 2010		$	487.3	$	24.9	$	1.9	$	514.1
	Acquisitions		62.9		2.5		4.7		70.1
	Amortization expense		(56.8)		(1.6)		(2.2)		(60.6)
	Other additions and foreign currency translation		(2.3)		(0.2)		0.9		(1.6)
Balance as of December 30, 2011			491.1		25.6		5.3		522.0
	Acquisitions		163.0		93.5		9.8		266.3
	Amortization expense		(93.9)		(4.8)		(2.5)		(101.2)
	Other additions and foreign currency translation		3.3		1.7		0.1		5.1
Balance as of December 28, 2012		$	563.5	$	116.0	$	12.7	$	692.2
Estimated useful lives			1 - 16 years		1 - 40 years (1)		1 - 13 years

• During the fourth quarter of2011, we revised the estimated useful life of the Scott Wilson trade name from 25 years to 12 years because we decided to reduce the use of the trade name.The estimated useful life of the Flint trade name in the U.S. and Canada is 40 years.

Our amortization expense related to intangible assets was $101.2 million, $60.6 million, and $49.2 million, respectively, for the years ended December 28, 2012, December 30, 2011, and December 31, 2010.

The following table presents the estimated future amortization expense of intangible assets:

(In millions)	Customer Relationships, Contracts, and Backlog		Trade Name		Favorable Leases and Other		Total
2013	$	101.3	$	5.6	$	1.8	$	108.7
2014		89.2		4.6		1.5		95.3
2015		78.1		4.2		1.1		83.4
2016		72.7		4.3		1.1		78.1
2017		67.3		4.3		0.5		72.1
Thereafter		154.9		93.0		6.7		254.6
	$	563.5	$	116.0	$	12.7	$	692.2

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SEGMENT AND RELATED INFORMATION (DETAILS 3) (USD $) In Millions, unless otherwise specified	3 Months Ended										12 Months Ended
	Dec. 28, 2012		Sep. 28, 2012	Jun. 29, 2012	Mar. 30, 2012	Dec. 30, 2011		Sep. 30, 2011	Jul. 01, 2011	Apr. 01, 2011	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Revenues from external customers and long-lived assets [Line Items]
Revenues	$ 2,972.7		$ 2,947.6	$ 2,690.7	$ 2,361.5	$ 2,393.2		$ 2,471.7	$ 2,360.3	$ 2,319.8	$ 10,972.5		$ 9,545.0		$ 9,177.1
Property and equipment at cost, net	687.5	[1],[2]				269.4	[1],[2]				687.5	[1],[2]	269.4	[1],[2]
United States [Member]
Revenues from external customers and long-lived assets [Line Items]
Revenues											8,640.2		8,329.7		8,385.4
Property and equipment at cost, net	320.4	[1]				209.5	[1]				320.4	[1]	209.5	[1]
International [Member]
Revenues from external customers and long-lived assets [Line Items]
Property and equipment at cost, net	367.1	[1]				59.9	[1]				367.1	[1]	59.9	[1]
United Kingdom [Member]
Revenues from external customers and long-lived assets [Line Items]
Property and equipment at cost, net	24.5	[1]				27.2	[1]				24.5	[1]	27.2	[1]
Canada
Revenues from external customers and long-lived assets [Line Items]
Revenues											1,304.0	[3]	180.3	[3]	162.3	[3]
Property and equipment at cost, net	313.2	[1],[4]				8.7	[1],[4]				313.2	[1],[4]	8.7	[1],[4]
Other foreign countries [Member]
Revenues from external customers and long-lived assets [Line Items]
Revenues											1,056.0		1,065.3		646.9
Property and equipment at cost, net	29.4	[1]				24.0	[1]				29.4	[1]	24.0	[1]
Geographical Area Elimination [Member]
Revenues from external customers and long-lived assets [Line Items]
Revenues											$ (27.7)		$ (30.3)		$ (17.5)

[1] Property and equipment at cost, net is categorized by the location of incorporation of the legal entities. Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

[2] The unamortized computer software costs were $71.1 million and $60.8 million, respectively, as of December 28, 2012 and December 30, 2011. The increases in property and equipment were mainly due to our acquisition of Flint.

[3] Revenues from Canada exceeded 10% of our consolidated revenues for the year ended December 28, 2012 due to our acquisition of Flint in fiscal year 2012.

[4] Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

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OTHER COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (DETAILS) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010		Jan. 01, 2010
Other comprehensive income (loss) [Line Items]
Balances	$ (113.2)		$ (110.8)
Other comprehensive income (loss) (Textuals) [Abstract]
Other comprehensive income (loss), defined benefit plans, net unamortized gain (loss) arising during period, before tax	45.6		80.9		5.3
Other comprehensive income (loss), amortization, pension and other postretirement benefit plans, net prior service cost (credit) recognized in net periodic benefit cost, before tax	7.4		4.1		0.4
Other comprehensive income defined benefit plans effect of changes in foreign currency rate, before tax	1.7		1.9		0.1
Valuation allowance that reduced the tax benefit	11.6
Pension And Post-Retirement Adjustments [Member]
Other comprehensive income (loss) [Line Items]
Before-tax amount	(39.9)	[1]	(73.4)	[1]	(5.1)	[1]
Tax benefit (expense)	13.3	[1]	10.7	[1],[2]	4.4	[1]
Adjustments, net of tax	(26.6)	[1]	(62.7)	[1]	(0.7)	[1]
Balances	(135.4)	[1]	(108.8)	[1]	(46.1)	[1]	(45.4)	[1]
Foreign Currency Translation Adjustments [Member]
Other comprehensive income (loss) [Line Items]
Before-tax amount	24.8		(11.2)		8.8
Adjustments, net of tax	24.8		(11.2)		8.8
Balances	22.8		(2.0)		9.2		0.4
Foreign Currency Translation Adjustment Due To Sale Of Investment In Unconsolidated Joint Venture [Member]
Other comprehensive income (loss) [Line Items]
Before-tax amount	(1.0)
Tax benefit (expense)	0.4
Adjustments, net of tax	(0.6)
Balances	(0.6)
Unrealized Gain (Loss) On Interest Rate Swaps [Member]
Other comprehensive income (loss) [Line Items]
Before-tax amount					7.0
Tax benefit (expense)					(2.8)
Adjustments, net of tax					4.2
Balances							(4.2)
Accumulated Other Comprehensive Income (Loss) [Member]
Other comprehensive income (loss) [Line Items]
Before-tax amount	(16.1)		(84.6)		10.7
Tax benefit (expense)	13.7		10.7	[2]	1.6
Adjustments, net of tax	(2.4)		(73.9)		12.3
Balances	$ (113.2)		$ (110.8)		$ (36.9)		$ (49.2)

[1] For fiscal year 2012, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $45.6 million of net loss arising during the year, $7.4 million of amortization of prior service credit and net loss, and $1.7 million of before-tax effect of changes in foreign currency exchange rates. For fiscal year 2011, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $80.9 million of net loss arising during the year, $4.1 million of amortization of prior service credit and net loss, and $1.9 million of before-tax effect of changes in foreign currency exchange rates. For fiscal year 2010, pension and post-retirement-related adjustments, before-tax, in other comprehensive income included $5.3 million of net loss arising during the year, $0.4 million of amortization of prior service credit and net loss, and $0.1 million of before-tax effect of changes in foreign currency exchange rates.

[2] The tax benefit has been reduced by a valuation allowance of $11.6 million in 2011.

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SEGMENT AND RELATED INFORMATION (DETAILS 2) (USD $) In Millions, unless otherwise specified	3 Months Ended																12 Months Ended
	Dec. 28, 2012		Sep. 28, 2012		Jun. 29, 2012		Mar. 30, 2012		Dec. 30, 2011		Sep. 30, 2011		Jul. 01, 2011		Apr. 01, 2011		Dec. 28, 2012		Dec. 30, 2011		Dec. 31, 2010
Segment reporting other significant reconciling item [Line Items]
URS operating income																	$ 570.7	[1]	$ 473.9	[1]	$ 446.1	[1]
Goodwill impairment									(27.7)	[2]	(798.1)	[2]							(825.8)
Operating income (loss)	171.4	[3],[4]	203.6	[4]	149.5	[4]	161.4	[4]	114.1	[5]	(620.2)	[3],[5]	150.6	[5]	132.1	[5]	685.9	[6]	(223.4)	[6]	544.4	[6]
Infrastructure and Environment [Member]
Segment reporting other significant reconciling item [Line Items]
URS operating income																	218.8	[1],[7]	222.0	[1],[7]	223.8	[1],[7]
Noncontrolling interests																	2.1				(0.9)
Operating income (loss)																	220.9	[3],[6],[7]	222.0	[6],[7]	222.9	[6],[7]
Federal Services [Member]
Segment reporting other significant reconciling item [Line Items]
URS operating income																	249.3	[1],[8]	196.8	[1],[8]	165.6	[1],[8]
Goodwill impairment																			(348.3)
Operating income (loss)																	249.3	[3],[6],[8]	(151.5)	[6],[8]	165.6	[6],[8]
Energy and Construction [Member]
Segment reporting other significant reconciling item [Line Items]
URS operating income																	140.0	[1]	134.6	[1]	127.7	[1]
Noncontrolling interests																	114.2		128.5		99.2
Goodwill impairment																			(477.5)
Operating income (loss)																	254.2	[3],[6]	(214.4)	[6]	226.9	[6]
Oil and Gas [Member]
Segment reporting other significant reconciling item [Line Items]
URS operating income																	62.3	[1],[9]
Noncontrolling interests																	(1.1)
Operating income (loss)																	61.2	[3],[6],[9]
Corporate [Member]
Segment reporting other significant reconciling item [Line Items]
URS operating income																	(99.7)	[1],[10]	(79.5)	[1],[10]	(71.0)	[1],[10]
Operating income (loss)																	$ (99.7)	[10],[3],[6]	$ (79.5)	[10],[6]	$ (71.0)	[10],[6]

[1] We are providing information regarding URS operating income (loss) by segment because management uses this information to assess performance and make decisions about resource allocation.

[2] For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively. During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively. See further discussion in Note 9, “Goodwill and Intangible Assets.”

[3] The operating income (loss) for the three##D<curpermonth> months ended ##D<priorperiod> includes a $798.1 million goodwill impairment charge.

[4] For the first quarter of 2012, we revised our operating income from $163.9 million, as previously reported in our 10-Q, to $161.4 million due to the reclassification of a $2.5 million gain recognized on foreign currency forward contracts from “General and administrative expenses” to “Other income (expenses)” on our Consolidated Statements of Operations. This revision had no impact on net income attributable to URS or EPS.

[5] In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture’s position, finding that its mechanic’s lien did not have priority over the senior lenders. As a result of the court’s decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million for the year ended December 31, 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

[6] The operating income (loss) for the year ended December 30, 2011 included a $825.8 million goodwill impairment charge. See Note 9, “Goodwill and Intangible Assets” for more information.

[7] The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.

[8] The operating results of Apptis have been included in our consolidated results since the acquisition on June 1, 2011.

[9] The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.

[10] Corporate includes expenses related to corporate functions and acquisition-related expenses.

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ACQUISITION (TABLES)

12 Months Ended

Dec. 28, 2012

Acquisition [Abstract]

Business acquisition - purchase price allocation [Table Text Block]

Preliminary allocation of purchase price:
(In millions)
Identifiable assets acquired and liabilities assumed:
	Cash and cash equivalents			$	4
	Trade and other receivables				544
	Inventory				61
	Other current assets				32
	Investments in and advances to unconsolidated joint ventures				147
	Property and equipment				420
	Other long-term assets				10
	Identifiable intangible assets:
		Customer relationships, contracts and backlog			159
		Trade names			94
		Other			13
			Total amount allocated to identifiable intangible assets		266
	Current liabilities				(244)
	Net deferred tax liabilities				(77)
	Long-term debt				(236)
	Other long-term liabilities				(31)
			Total identifiable net assets acquired		896
Goodwill					456
			Total purchase price	$	1,352

Allocation of purchase price:
(In millions)					Apptis
Identifiable assets acquired and liabilities assumed:
	Cash and cash equivalents				$	18
	Trade and other receivables					60
	Other current assets					8
	Property and equipment					20
	Other long-term assets					10
	Identifiable intangible assets:
		Customer relationships, contracts and backlog				60
		Trade name and other				4
			Total amount allocated to identifiable intangible assets			64
	Current liabilities					(76)
	Net deferred tax liabilities					(5)
	Long-term liabilities					(16)
				Total identifiable net assets acquired		83
	Goodwill					200
				Total purchase price	$	283

Business acquisition, pro forma information [Abstract]

Business acquisition, pro forma information [Table Text Block]

		Year Ended
(In millions, except per share data)		December 28, 2012		December 30, 2011
Revenues		$	11,785.8	$	11,128.7
Net income (loss) including noncontrolling interests		$	409.1	$	(429.8)
Net income (loss) attributable to URS			292.9		(558.3)
	Basic EPS	$	3.94	$	(7.22)
	Diluted EPS	$	3.93	$	(7.22)

Business acquisition, pro forma nonrecurring adjustments [Abstract]

Business acquisition, pro forma nonrecurring adjustments [Table Text Block]

Pre-tax, nonrecurring adjustment (In millions)	Year Ended		Year Ended
		December 28, 2012		December 30, 2011 (1)
Acquisition-related expenses	$	27.7	$	(27.5)

• Included in the pro forma results for the year ended December 30, 2011 is a nonrecurring adjustment related to URS and Flintacquisition-related expenses. These expenses were included in the fiscal year 2011 pro forma results as if the acquisition occurred at the beginning of that fiscal year.

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PROPERTY AND EQUIPMENT (DETAILS) (USD $) In Millions, unless otherwise specified							12 Months Ended				12 Months Ended				12 Months Ended				12 Months Ended				12 Months Ended						12 Months Ended				12 Months Ended
	Dec. 28, 2012		Dec. 30, 2011		Dec. 28, 2012 Construction and mining equipment [Member]	Dec. 30, 2011 Construction and mining equipment [Member]	Dec. 28, 2012 Construction and mining equipment [Member] Maximum [Member]	Dec. 28, 2012 Construction and mining equipment [Member] Minimum [Member]	Dec. 28, 2012 Computer software [Member]	Dec. 30, 2011 Computer software [Member]	Dec. 28, 2012 Computer software [Member] Maximum [Member]	Dec. 28, 2012 Computer software [Member] Minimum [Member]	Dec. 28, 2012 Computer hardware [Member]	Dec. 30, 2011 Computer hardware [Member]	Dec. 28, 2012 Computer hardware [Member] Maximum [Member]	Dec. 28, 2012 Computer hardware [Member] Minimum [Member]	Dec. 28, 2012 Vehicles and automotive equipment [Member]	Dec. 30, 2011 Vehicles and automotive equipment [Member]	Dec. 28, 2012 Vehicles and automotive equipment [Member] Maximum [Member]	Dec. 28, 2012 Vehicles and automotive equipment [Member] Minimum [Member]	Dec. 28, 2012 Leasehold improvements [Member]	Dec. 30, 2011 Leasehold improvements [Member]	Dec. 28, 2012 Leasehold improvements [Member] Maximum [Member]		Dec. 28, 2012 Leasehold improvements [Member] Minimum [Member]		Dec. 28, 2012 Land and buildings [Member]	Dec. 30, 2011 Land and buildings [Member]	Dec. 28, 2012 Buildings [Member] Maximum [Member]	Dec. 28, 2012 Buildings [Member] Minimum [Member]	Dec. 28, 2012 Furniture and fixtures [Member]	Dec. 30, 2011 Furniture and fixtures [Member]	Dec. 28, 2012 Furniture and fixtures [Member] Maximum [Member]	Dec. 28, 2012 Furniture and fixtures [Member] Minimum [Member]	Dec. 28, 2012 Other equipment [Member]	Dec. 30, 2011 Other equipment [Member]	Dec. 28, 2012 Construction in progress [Member]	Dec. 30, 2011 Construction in progress [Member]
Depreciation and amortization expense related to property and equipment (Textuals) [Abstract]
Unamortized computer software costs	$ 71.1		$ 60.8
Property plant and equipment [Line Items]
Property plant and equipment, gross	1,286.2		756.8		266.4	95.3			219.5	186.3			198.2	186.8			172.2	7.7			130.1	109.0					114.1	9.2			97.7	91.5			72.4	70.8	15.6	0.2
Accumulated depreciation and amortization	(598.7)		(487.4)
Property and equipment at cost, net	$ 687.5	[1],[2]	$ 269.4	[1],[2]
Estimated useful life							15 years 0 months 0 days	3 years 0 months 0 days			10 years 0 months 0 days	3 years 0 months 0 days			10 years 0 months 0 days	3 years 0 months 0 days			12 years 0 months 0 days	3 years 0 months 0 days			20 years 0 months 0 days	[3]	1 year 0 months 0 days	[3]			45 years 0 months 0 days	10 years 0 months 0 days			10 years 0 months 0 days	3 years 0 months 0 days

[1] Property and equipment at cost, net is categorized by the location of incorporation of the legal entities. Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

[2] The unamortized computer software costs were $71.1 million and $60.8 million, respectively, as of December 28, 2012 and December 30, 2011. The increases in property and equipment were mainly due to our acquisition of Flint.

[3] Leasehold improvements are amortized over the length of the lease or estimated useful life, whichever is less

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EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFIT PLANS

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFIT PLANS

NOTE14. EMPLOYEE RETIREMENT AND POST-RETIREMENT BENEFIT PLANS

Defined Contribution Plans

We made contributions of $91.0 million, $48.1 million and $83.0 million to our defined contribution plans during the years ended December 28, 2012, December 30, 2011, and December 31, 2010, respectively. Full- and part-time employees, and employees covered by collective bargaining agreements are generally able to participate in one of our defined contribution plans. Cash contributions to these defined contribution plans are based on either a percentage of employee contributions or on a specified amount per hour depending on the provisions of each plan. Effective January 1, 2011, the Washington Group International, Inc. (“WGI”)401(k) Retirement Savings Plan (“the WGI 401(k) Plan”) and the Retirement Savings Plan for Field Operations were merged with and into the URS Corporation 401(k) Retirement Plan. Subsequently, the account balances of some participants were transferred into the URS Corporation 401(k) Retirement Plan for Specified Contract Employees. Under the WGI 401(k) Plan, we made bi-weekly employer contributions. Subsequent to the merger of the WGI 401(k) Plan, we make annual contributions, which generally occur in the first quarter after the year-end.

In addition to the above, some of our foreign subsidiaries have contributory trustee retirement plans covering substantially all of their employees. Upon the acquisition of Flint, we began sponsoring Flint's defined contribution plans. We made contributions to our foreign plansin the amounts of approximately $35.9 million, $20.2million, and $13.1 million for the years ended December 28, 2012, December 30, 2011, and December 31, 2010, respectively.

Deferred Compensation Plans

We maintain various deferred compensation plans, including a restoration plan for some executives of the Energy & Construction Division. The URS E&C Holdings, Inc. Voluntary Deferred Compensation Plan allows for deferral of salary and incentive compensation. The URS E&C Holdings, Inc. Restoration Plan provides matching contributions on compensation not eligible for matching contributions under the URS Corporation, Inc. 401(k) Plan. As of December 28, 2012 and December 30, 2011, the accrued benefit amounts for our deferred compensation plans were $23.2 million and $21.6 million, respectively, and are included in “Other long-term liabilities” on our Consolidated Balance Sheets.

Defined Benefit Plans

We sponsor a number of pension and unfunded supplemental executive retirement plans, including the following significant plans.

We provide a defined benefit plan, the URS Federal Technical Services, Inc. Employees' Retirement Plan, to cover some of the Federal Services Division's hourly and salaried employees as well as our employees of a joint venture in which this business group participates. This pension plan provides retirement benefit payments for the life of participating retired employees. It was closed to new participants on June 30, 2003, but active participants continue to accrue benefits. All participants are fully vested in their benefits.

As part of our acquisition of Scott Wilson, we assumed two foreign defined benefit retirement plans: Scott Wilson Pension Scheme (“SWPS”) and Scott Wilson Railways Shared Cost Section of the Railways Pension Scheme (“RPS”). The SWPS is closed to new participants and was closed to future accruals on October 1, 2010. The RPS is closed to new participants other than those who have an indefeasible right to join under U.K. law.

As part of the WGI acquisition in 2007, we assumed various defined benefit pension plans and unfunded supplemental retirement plans, including the URS Government Services Group Pension Plan, the Washington Government Services Group Executive Pension Plan, the URS Safety Management Solutions Pension Plan, and others, which primarily cover groups of current and former employees of the Energy & Construction Division. No new employees will be eligible to participate in these plans. Accrued pension benefits for the qualified pension plans are based on pay and service through December 31, 2005. These plans were closed to future accruals after December 31, 2005.

We also provided a foreign defined benefit plan (“Final Salary Pension Fund”) in the U.K. The Final Salary Pension Fund provides retirement benefit payments for the life of participating retired employees and their spouses. In 2006, we made a decision pursuant to a formal curtailment plan to eliminate the accrual of defined benefits for all future benefits under the Final Salary Pension Fund.In 2011, this plan was merged into SWPS.

Consistent with foreign laws, we may also contribute funds into foreign government-managed accounts or insurance companies for our foreign employees.

Valuation

We measure our pension costs according to actuarial valuations and the projected unit credit method is used to determine pension costs for financial accounting purposes.

The discount rates for our defined benefit plans were derived using an actuarial “bond model.” The modelsfor domestic and foreign plansassume that we purchase bonds with a credit rating of AA or better by Standard & Poor's and Moody's, respectively,at prices based on a current bond yield and bond quality. The model develops the yield on this portfolio of bonds as of the measurement date. The cash flows from the bonds selected for the portfolio generally match our expected benefit payments in future years.

For our domestic plans, the Citigroup High Grade Credit Index (AAA/AA 10+ Year)or Citigroup Pension Discount Curvewas used to determine the yield differential for cash flow streams from appropriate quality bonds as of the measurement date. For our foreign plans, the iBoxxGBP Corporate Bond Index (AA 15+ Year) was used to determine the yield differential for cash flow streams from appropriate quality bonds as of the measurement date.

The weighted average of the bond yields is determined based upon the estimated retirement payments in order to derive the discount rate used in calculating the present value of the pension plan obligations.

Our estimates of benefit obligations and assumptions used to measure those obligations for the defined benefit plans as of December 28, 2012 andDecember 30, 2011, were as follows:

										##SL
			Domestic Plans				Foreign Plans
			December 28,		December 30,		December 28,		December 30,
(In millions, except percentages)			2012		2011		2012		2011
Change in benefit obligation:
	Benefit obligation at beginning of year		$	383.3	$	350.2	$	447.9	$	418.6
	Service cost			7.5		6.8		0.6		0.6
	Interest cost			18.9		19.0		22.6		24.4
	Employee contributions			—		—		0.4		0.5
	Plan amendment			—		(1.1)		—		—
	Benefits paid and expenses			(16.6)		(16.0)		(14.9)		(15.5)
	Exchange rate changes			—		—		20.8		(3.9)
	Actuarial (gain) loss			50.3		24.4		8.5		23.2
		Benefit obligation at end of year	$	443.4	$	383.3	$	485.9	$	447.9
Change in plan assets:
	Fair value of plan assets at beginning of year		$	236.4	$	205.4	$	334.3	$	345.8
	Actual gain (loss) on plan assets			31.4		13.6		25.6		(2.5)
	Employer contributions			18.4		28.5		9.7		7.7
	Employer direct benefit payments			4.6		4.9		—		—
	Employee contributions			—		—		0.4		0.5
	Exchange rate changes			—		—		15.7		(1.7)
	Benefits paid and expenses			(16.6)		(16.0)		(14.9)		(15.5)
		Fair value of plan assets at end of year	$	274.2	$	236.4	$	370.8	$	334.3
Underfunded status reconciliation:
	Underfunded status		$	169.2	$	146.9	$	115.1	$	113.6
		Net amount recognized	$	169.2	$	146.9	$	115.1	$	113.6
Amounts recognized in our Consolidated Balance Sheets consist of:
	Accrued benefit liability included in current liabilities		$	5.1	$	4.9	$	—	$	—
	Accrued benefit liability included in other long-term liabilities			164.1		142.0		115.1		113.6
		Net amount recognized	$	169.2	$	146.9	$	115.1	$	113.6
Amounts recognized in accumulated other comprehensive income consist of:
	Prior service income		$	0.6	$	3.6	$	—	$	—
	Net gain (loss)			(140.5)		(113.6)		(41.6)		(34.8)
		Net amount recognized	$	(139.9)	$	(110.0)	$	(41.6)	$	(34.8)
Additional information:
	Accumulated benefit obligation		$	437.6	$	376.3	$	470.7	$	435.1
Weighted-average assumptions used to determine benefit obligations at year end:
	Discount rate			4.02%		5.05%		4.80%		5.00%
	Rate of compensation increase			4.50%		4.50%		2.80%		3.00%

Net periodic pension costs and other comprehensive income included the following components for the years endedDecember 28, 2012,December 30, 2011, andDecember 31, 2010:

			Years Ended
			Domestic Plans						Foreign Plans
			December 28,		December 30,		December 31,		December 28,		December 30,		December 31,
(In millions, except percentages)			2012		2011		2010		2012		2011		2010 (1)
Net periodic pension costs:
	Service cost		$	7.5	$	6.8	$	6.1	$	0.6	$	0.6	$	0.3
	Interest cost			18.9		19.0		18.5		22.6		24.4		7.7
	Expected return on plan assets			(17.7)		(16.4)		(15.9)		(22.2)		(22.9)		(7.2)
	Amortization of prior service cost			(3.0)		(3.2)		(3.2)		—		—		—
	Recognized actuarial loss			9.8		7.4		3.7		—		—		0.1
		Total net periodic pension costs	$	15.5	$	13.6	$	9.2	$	1.0	$	2.1	$	0.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
	Prior service cost		$	—	$	(1.1)	$	—	$	—	$	—	$	—
	Net loss (gain)			36.7		27.3		22.5		5.1		48.6		(17.4)
	Effect of exchange rate changes on amounts included in accumulated other comprehensive income			—		—		—		1.7		(1.9)		0.1
	Amortization or curtailment recognition of prior service credit			3.0		3.2		3.2		—		—		—
	Amortization or settlement recognition of net loss			(9.8)		(7.4)		(3.7)		—		—		(0.1)
		Total recognized in other comprehensive loss (income)	$	29.9	$	22.0	$	22.0	$	6.8	$	46.7	$	(17.4)
Total recognized in net periodic pension costs and other comprehensive loss (income)			$	45.4	$	35.6	$	31.2	$	7.8	$	48.8	$	(16.5)
Weighted-average assumptions used to determine net periodic cost for years ended:
	Discount rate			5.05%		5.55%		6.05%		5.00%		5.70%		5.45%
	Rate of compensation increase			4.50%		4.50%		4.50%		3.00%		3.45%		3.45%
	Expected long-term rate of return on plan assets			7.34%		7.44%		7.89%		7.00%		6.96%		6.67%
	Measurement dates			12/30/2011		12/31/2010		1/1/2010		12/30/2011		12/31/2010		1/1/2010

• Measurement date for the two Scott Wilson plans was September 10, 2010, the acquisition date. Net periodic pension costs and the amounts recognized in other comprehensive income (loss) for the Scott Wilson plans were partially included in the year ended December 31, 2010, as we completed the acquisition in September 2010.

Investment policies & strategies

Our investment policies and strategies are to seek a competitive rate of return relative to an appropriate level of risk depending on the funded status and obligations of each plan. The plans' investment managers employ both active and passive investment management strategies with the goal of matching or outperforming the broad markets in which they invest. Our risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. The target asset allocation selected for each domestic plan reflects a risk/return profile that we believe is appropriate relative to each plan's liability structure and return goals. We conduct periodic asset-liability studies for domestic plan assets in order to model various potential asset allocations in comparison to each plan's forecasted liabilities and liquidity needs. For the foreign plans, asset allocation decisions are generally made by an independent board of trustees, or similar governing body.

For our domestic and foreign plans, investment objectives are aligned to generate returns that will enable the plans to meet their future obligations.

The assumptions we use in determining the expected long-term rate of return on plan assets are based on an actuarial analysis. This analysis includes a review of anticipated future long-term performance of individual asset classes and consideration of the appropriate asset allocation strategy, given the anticipated requirements of the plan, to determine the average rate of earnings expected on the funds invested to provide for the pension plan benefits. While the study gives appropriate consideration to recent fund performance and historical returns, the assumption is primarily a long-term, prospective rate.

Our weighted-average target asset allocation for the defined benefit plans is as follows:

		Current Target Asset Allocation
		Domestic Plans		Foreign Plans
Equity securities			50%		28%
Debt securities			50%		35%
Real estate			—		6%
Hedge fund			—		26%
Other			—		5%
	Total		100%		100%

We expect to make cash contributions, including estimated employer-directed benefit payments, during 2013, of approximately $30.6million to the domestic and foreign defined benefit plans.

As of December 28, 2012, the estimated portions of the net loss and the prior service credit in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost over the next fiscal year are $15.5 million and $0.4 million, respectively. In addition, the estimated future benefit payments to be paid out in the next ten years under our defined benefit plansare as follows:

For the Fiscal Year:		Estimated Future Benefit Payments
(In millions)		Domestic Plans		Foreign Plans
2013		$	20.1	$	15.1
2014			37.0		15.4
2015			21.8		15.9
2016			22.4		16.3
2017			23.1		16.7
Next five fiscal years thereafter			123.5		90.4
	Total	$	247.9	$	169.8

Post-retirement Benefit Plans

We sponsor a number of retiree health and life insurance benefit plans (post-retirement benefit plans) for our Energy & Construction and Federal Services Divisions. Post-retirement benefit plans provide medical and life insurance benefits to employees who meet eligibility requirements. All of these benefits may be subject to deductibles, co-payment provisions, and other limitations. The post-retirement benefits provided under company-sponsored health care and life insurance plans of the Energy & Construction Division were frozenprior to the WGI acquisition. The Federal Services plan was closed to new participants in 2003. We have reserved the right to amend or terminate the post-retirement benefits currently provided under the plans and may increase retirees' cash contributions at any time.

Valuation

Our measures of the accumulated benefit obligation and net periodic benefit costs reflect amounts associated with the Medicare subsidy. We measure our post-retirement benefit costs according to actuarial valuations and the projected unit credit method is used to determine post-retirement benefit costs for financial accounting purposes.

The discount rate was derived using a “bond model” and adjusted for the benefit duration for each plan. The Citigroup Pension Discount Curve was used to determine the yield differential for cash flow streams from appropriate quality bonds as of the measurement date. The yield differential was applied to the bond model rate to derive the discount rate.

Our estimates of aggregated benefit obligations and assumptions used to measure those obligations of the post-retirement benefit plans at December 28, 2012and December 30, 2011 were as follows:

			December 28,		December 30,
(In millions, except percentages)			2012		2011
Change in accumulated post-retirement benefit obligation:
	Accumulated post-retirement benefit obligation at beginning of year		$	41.9	$	40.1
	Service cost			0.2		0.1
	Interest cost			1.9		2.0
	Employee contributions			2.0		2.3
	Benefits paid and expenses			(5.8)		(7.0)
	Actuarial gain			3.4		4.4
		Accumulated post-retirement benefit obligation at end of year	$	43.6	$	41.9
Change in plan assets:
	Fair value of plan assets at beginning of year		$	3.2	$	3.6
	Actual gain (loss) on plan assets			(0.2)		(0.4)
	Employer contributions			—		0.5
	Employer direct benefit payments			3.9		4.2
	Employee contributions			2.0		2.3
	Benefits paid and expenses			(5.8)		(7.0)
		Fair value of plan assets at end of year	$	3.1	$	3.2
Funded status reconciliation:
	Underfunded status		$	40.5	$	38.7
		Net amount recognized	$	40.5	$	38.7
Amounts recognized in our Consolidated Balance Sheets consist of:
	Accrued post-retirement benefit liability included in current liabilities			3.3		3.2
	Accrued post-retirement benefit liability included in other long-term liabilities			37.2		35.5
		Net amount recognized	$	40.5	$	38.7
Amounts recognized in accumulated other comprehensive income consist of:
	Net gain (loss)		$	(7.3)	$	(4.1)
		Net amount recognized	$	(7.3)	$	(4.1)
Weighted-average assumptions used to determine benefit obligations at year end:
	Discount rate			3.48%		4.69%

Net periodic post-retirement benefit costs and other comprehensive income included the following components for the years ended December 28, 2012, December 30, 2011, and December 31, 2010:

			Years Ended
			December 28,		December 30,		December 31,
(In millions, except percentages)			2012		2011		2010
Net periodic post-retirement benefit costs:
	Service cost		$	0.2	$	0.1	$	0.1
	Interest cost			1.9		2.0		2.2
	Expected return on plan assets			(0.2)		(0.2)		(0.2)
	Recognized actuarial loss (gain)			0.6		(0.1)		(0.2)
		Total net periodic post- retirement benefit costs	$	2.5	$	1.8	$	1.9
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
	Net loss		$	3.8	$	5.0	$	0.2
	Amortization or settlement recognition of net (loss) gain			(0.6)		0.1		0.2
		Total recognized in other comprehensive loss	$	3.2	$	5.1	$	0.4
Total recognized in net periodic post- retirement benefit costs and other comprehensive loss			$	5.7	$	6.9	$	2.3
Weighted-average assumptions used to determine net periodic cost for years ended:
	Discount rate			4.69%		5.23%		5.72%
	Expected long-term rate of return on plan assets			7.50%		7.50%		8.00%
	Measurement dates			12/30/2011		12/31/2010		1/1/2010

		December 28,		December 30,
		2012		2011
Assumed blended health care cost trend rates at year-end:
	Health care cost trend rate assumed for next year		7.94%		7.97%
	Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.94%		4.94%
	Years that the rates reach the ultimate trend rate		2020/2024		2020/2024

Assumed health care costs trend rates have a significant effect on the health care plan. A one percentage point change in assumed health care costs trend rates would have the following effects on net periodic cost for the year ended December 28, 2012 and the accumulated post-retirement benefit obligation as of December 28, 2012:

	1% Point
(In millions)	Increase		Decrease
Effect on total of service and interest cost components	$	0.1	$	0.1
Effect on post-retirement benefit obligation		1.9		1.7

Investment policies & strategies

Among all the post retirement benefit plans we sponsor, the post-retirement medical plan of the Federal Services Division is a funded plan and the plan assets are invested in a master trust. The other post-retirement benefit plans are unfunded. The investment policies and strategies of our funded post-retirement benefit plan are the same as previously described in the “Defined Benefit Plans” section.

Our weighted-average target asset allocation for the funded post-retirement benefit plans is as follows:

		Current Target Asset Allocation
Equity securities			50%
Debt securities			50%
	Total		100%

We currently expect to make cash contributions, including estimated employer direct benefit payments, of approximately $3.6million to the post-retirement benefit plans for 2013.

As of December 28, 2012, the estimated portions of the net loss and the prior service cost in accumulated other comprehensive income that will be recognized as components of net periodic benefit cost over the next fiscal year are $0.5 million and zero, respectively. Our Medicare Part D subsidy receipts were $0.4 million and $0.5 million in fiscal years 2012 and 2011, respectively. In addition, the estimated future benefit payments to be paid out and estimated Medicare subsidy receipts in the next ten years are as follows:

For the Fiscal Year: (In millions)		Estimated Future Benefit Payments		Estimated Medicare Subsidy Receipts
2013		$	3.6	$	0.4
2014			3.6		0.4
2015			3.7		0.4
2016			3.6		0.3
2017			3.6		0.3
Next five fiscal years thereafter			15.8		1.1
	Total	$	33.9	$	2.9

Fair Values of Defined Benefit Plans and Post-retirement Benefit Plan Assets

As of December 28, 2012 and December 30, 2011, the fair values of our defined benefit plan assets by the major asset categories are as follows:

		Total		Fair Value Measurement as of December 28, 2012
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 28,		Active Markets		Observable Inputs		Inputs
(In millions)		2012		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents		$	21.0	$	8.0	$	13.0	$	—
U.S. equity funds			74.4		—		74.4		—
International equity funds			166.8		—		166.8		—
Fixed income securities			264.9		—		264.9		—
International property fund			117.9		—		117.9		—
	Total	$	645.0	$	8.0	$	637.0	$	—
		Total		Fair Value Measurement as of December 30, 2011
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 30,		Active Markets		Observable Inputs		Inputs
(In millions)		2011		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents		$	5.7	$	2.3	$	3.4	$	—
U.S. equity funds			78.8		—		78.8		—
International equity funds			162.6		—		162.6		—
Fixed income securities			223.3		—		223.3		—
International property fund			100.3		—		100.3		—
	Total	$	570.7	$	2.3	$	568.4	$	—

As of December 28, 2012 and December 30, 2011, the fair values of our post-retirement benefit plan assets by the major asset categories are as follows:

		Total		Fair Value Measurement as of December 28, 2012
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 28,		Active Markets		Observable Inputs		Inputs
(In millions)		2012		(Level 1)		(Level 2)		(Level 3)
U.S. equity funds		$	0.8	$	—	$	0.8	$	—
International equity funds			0.7		—		0.7		—
International property fund			1.6		—		1.6		—
	Total	$	3.1	$	—	$	3.1	$	—
		Total		Fair Value Measurement as of December 30, 2011
		Carrying						Significant
		Value as of		Quoted Prices in		Significant Other		Unobservable
		December 30,		Active Markets		Observable Inputs		Inputs
(In millions)		2011		(Level 1)		(Level 2)		(Level 3)
U.S. equity funds		$	1.0	$	—	$	1.0	$	—
International equity funds			0.6		—		0.6		—
International property fund			1.6		—		1.6		—
	Total	$	3.2	$	—	$	3.2	$	—

Level 1: The fair values of the plans' interest in cash.

Level 2: The fair values of the plans' interest in common collective trust funds are based on quoted prices for similar assets in active markets, quoted prices for identical or similar assets in inactive markets, inputs other than quoted prices that are observable for the asset, and/or inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset.

Multiemployer Pension Plans

We participate in approximately 200 construction-industry multiemployer pension plans. Generally, the plans provide defined benefits to substantially all employees covered by collective bargaining agreements. Under ERISA, a contributor to a multiemployer plan is liable, upon termination or withdrawal from a plan, for its proportionate share of a plan's unfunded vested liability.

Our aggregate contributions to these plans were $48.2 million, $40.7million, and $50.8 million for the years ended December 28, 2012, December 30, 2011, and December 31, 2010, respectively. At December 28, 2012,none of the plans in which we participate are individually significant to our consolidated financial statements.

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RECEIVABLE AND DEFERRED INCOME TAX VALUATION ALLOWANCES

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

RECEIVABLE AND DEFERRED INCOME TAX VALUATION ALLOWANCES

NOTE19.RECEIVABLE AND DEFERRED INCOME TAX VALUATION ALLOWANCES

Receivable allowances are comprised of allowances for amounts that may become uncollectable or unrealizable in the future. We determine these amounts based on historical experience and other currently available information. A valuation allowance for deferred income taxes is established when it is more likely than not that net deferred tax assets will not be realized.

The following table summarizes the activities in the receivable allowances and the deferred income tax valuation allowance from the beginning of the periods to the end of the periods.

(In millions)	Balance at the Beginning of the Period		Additions (Charged to Bad Debt Expense)		Additions (Charged to Other Accounts) (1)		Deductions (2)		Other (3)		Balance at the End of the Period
Year ended December 28, 2012
Receivable allowances	$	43.1	$	6.6	$	27.4	$	(7.4)	$	—	$	69.7
Deferred income tax valuation allowance	$	124.0	$	—	$	3.1	$	(1.1)	$	11.6	$	137.6
Year ended December 30, 2011
Receivable allowances	$	42.8	$	2.8	$	16.1	$	(18.6)	$	—	$	43.1
Deferred income tax valuation allowance	$	104.2	$	—	$	23.5	$	(15.3)	$	11.6	$	124.0
Year ended December 31, 2010
Receivable allowances	$	47.7	$	6.7	$	8.9	$	(20.5)	$	—	$	42.8
Deferred income tax valuation allowance	$	87.6	$	—	$	21.4	$	(8.0)	$	3.2	$	104.2

• These additions were primarily charged to revenues or income tax expense.
• Deductions to the deferred income tax valuation allowance were primarily attributed to foreign and state NOL expirations, change in tax rates and the use of federal and state NOLs.
• Other adjustments to the deferred income tax valuation allowance during the year ended December 28, 2012 were attributable to acquired deferred taxes through the Flint acquisition. For the year ended December 30, 2011, other adjustments to the deferred income tax valuation allowancewere charged to other comprehensive income. For the year ended December 31, 2010, other adjustments to the deferred income tax valuation allowance were attributable to acquired deferred taxes on foreign net operating losses through the Scott Wilson acquisition.

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INVENTORY (DETAILS) (USD $) In Millions, unless otherwise specified	Dec. 28, 2012	Dec. 30, 2011
Inventory [Abstract]
Raw materials	$ 14.2	$ 2.7
Work in process	9.8	16.8
Finished goods	24.9
Supplies	12.6
Inventory	$ 61.5	$ 19.5

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SEGMENT AND RELATED INFORMATION (TABLES)

12 Months Ended

Dec. 28, 2012

Segment reporting [Abstract]

Segment reporting, disclosure of entity's reportable segments [Table Text Block]

		Year Ended
		December 28,		December 30,		December 31,
(In millions)		2012		2011		2010
Revenues
Infrastructure & Environment (1)		$	3,792.1	$	3,760.9	$	3,248.5
Federal Services (2)			2,721.6		2,695.4		2,582.8
Energy & Construction			3,138.1		3,251.1		3,420.6
Oil & Gas (3)			1,475.1		—		—
Inter-segment, eliminations and other			(154.4)		(162.4)		(74.8)
	Total revenues	$	10,972.5	$	9,545.0	$	9,177.1
Equity in income of unconsolidated joint ventures
Infrastructure & Environment (1)		$	4.0	$	3.9	$	2.9
Federal Services (2)			6.4		6.2		5.9
Energy & Construction (4)			93.0		122.1		61.5
Oil & Gas (3)			4.2		—		—
	Total equity in income of unconsolidated joint ventures	$	107.6	$	132.2	$	70.3
URS operating income (loss) (5)
Infrastructure & Environment (1)		$	218.8	$	222.0	$	223.8
Federal Services (2)			249.3		196.8		165.6
Energy & Construction			140.0		134.6		127.7
Oil & Gas (3)			62.3		—		—
Corporate (6)			(99.7)		(79.5)		(71.0)
	Total URS operating income (loss)	$	570.7	$	473.9	$	446.1
Operating income (loss) (7)
Infrastructure & Environment (1)		$	220.9	$	222.0	$	222.9
Federal Services (2)			249.3		(151.5)		165.6
Energy & Construction			254.2		(214.4)		226.9
Oil & Gas (3)			61.2		—		—
Corporate (6)			(99.7)		(79.5)		(71.0)
	Total operating income (loss)	$	685.9	$	(223.4)	$	544.4
Capital expenditures
Infrastructure & Environment (1)		$	43.2	$	51.2	$	30.0
Federal Services (2)			5.5		4.8		5.6
Energy & Construction			19.0		14.8		15.9
Oil & Gas (3)			72.3		—		—
Corporate (6)			13.2		10.9		6.6
	Total capital expenditures	$	153.2	$	81.7	$	58.1
Depreciation and amortization
Infrastructure & Environment (1)		$	56.5	$	55.0	$	42.2
Federal Services (2)			36.3		27.1		21.4
Energy & Construction			47.1		54.3		62.3
Oil & Gas (3)			87.1		—		—
Corporate (6)			6.6		6.3		7.6
	Total depreciation and amortization	$	233.6	$	142.7	$	133.5

• The operating results of Scott Wilson have been included in our consolidated results since the acquisition on September 10, 2010.
• The operating results of Apptishave been included in our consolidated results since the acquisition on June1, 2011.
• The operating results of Flint have been included in our consolidated results since the acquisition on May 14, 2012.
• In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture's position, finding that its mechanic's lien did not have priority over the senior lenders. As a result of the court's decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million in the third quarter of 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.
• We are providing information regarding URS operating income (loss) by segment because management uses this information to assess performance and make decisions about resource allocation.
• Corporate includes expenses related to corporate functions and acquisition-related expenses.
• The operating income (loss) for the year ended December 30, 2011 included a$825.8milliongoodwill impairment charge. See Note 9, “Goodwill and Intangible Assets” for more information.

Reconciliation of other significant reconciling items from segments to consolidated [Table Text Block]

		Year Ended December 28, 2012
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	218.8	$	249.3	$	140.0	$	62.3	$	(99.7)	$	570.7
Noncontrolling interests			2.1		—		114.2		(1.1)		—		115.2
	Operating income (loss)	$	220.9	$	249.3	$	254.2	$	61.2	$	(99.7)	$	685.9
		Year Ended December 30, 2011
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	222.0	$	196.8	$	134.6	$	—	$	(79.5)	$	473.9
Noncontrolling interests			—		—		128.5		—		—		128.5
Goodwill impairment			—		(348.3)		(477.5)		—		—		(825.8)
	Operating income (loss)	$	222.0	$	(151.5)	$	(214.4)	$	—	$	(79.5)	$	(223.4)
		Year Ended December 31, 2010
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	223.8	$	165.6	$	127.7	$	—	$	(71.0)	$	446.1
Noncontrolling interests			(0.9)		—		99.2		—		—		98.3
	Operating income (loss)	$	222.9	$	165.6	$	226.9	$	—	$	(71.0)	$	544.4

Schedule of investments in and advances to unconsolidated joint ventures and property and equipment, net of accumulated depreciation by segment [Table Text Block]

		December 28,		December 30,
(In millions)		2012		2011
Infrastructure & Environment		$	8.1	$	6.3
Federal Services			5.7		5.1
Energy & Construction			124.5		96.3
Oil & Gas			140.0		—
	Total investments in and advances to unconsolidated joint ventures	$	278.3	$	107.7
Infrastructure & Environment		$	141.0	$	140.5
Federal Services			36.6		46.2
Energy & Construction			60.1		61.8
Oil & Gas			422.9		—
Corporate			26.9		20.9
	Total property and equipment, net of accumulated depreciation	$	687.5	$	269.4

Reconciliation of assets from segment to consolidated [Table Text Block]

		December 28,		December 30,
(In millions)		2012		2011
Infrastructure & Environment		$	2,267.5	$	2,287.3
Federal Services			1,645.8		1,582.4
Energy & Construction			2,776.5		2,611.9
Oil & Gas			1,904.4		—
Corporate			192.3		381.0
	Total assets	$	8,786.5	$	6,862.6

Schedule of revenues from external customers, by geographical areas [Table Text Block]

		Years Ended
		December 28,		December 30,		December 31,
(In millions)		2012		2011		2010
Revenues
	United States	$	8,640.2	$	8,329.7	$	8,385.4
	Canada (1)		1,304.0		180.3		162.3
	Other foreign countries		1,056.0		1,065.3		646.9
	Eliminations		(27.7)		(30.3)		(17.5)
Total revenues		$	10,972.5	$	9,545.0	$	9,177.1

• Revenues from Canadaexceeded10% of our consolidated revenues for the year ended December 28, 2012due to our acquisition of Flint in fiscal year 2012.

• Property and equipment at cost, net is categorized by the location of incorporation of the legal entities.
• Property and equipment in Canada became a significant portion of our total property and equipment due to our acquisition of Flint in fiscal year 2012.

Schedule of net property and equipment from external customers by geographical areas [Table Text Block]

				December 28,		December 30,
(In millions)				2012		2011
Property and equipment at cost, net (1)
	United States			$	320.4	$	209.5
	International:
		Canada (2)			313.2		8.7
		United Kingdom			24.5		27.2
		Other foreign countries			29.4		24.0
			Total international		367.1		59.9
Total property and equipment at cost, net				$	687.5	$	269.4

Revenues from major customers [Table Text Block]

		Year Ended
		December 28,		December 30,		December 31,
(In millions, except percentages)		2012		2011		2010
The U.S. Army (1)
	Infrastructure & Environment	$	128.4	$	141.7	$	167.0
	Federal Services		1,495.8		1,351.1		1,408.7
	Energy & Construction		130.8		199.5		346.6
Total U.S. Army		$	1,755.0	$	1,692.3	$	1,922.3
Revenues from the U.S. Army as a percentage of our consolidated revenues			16%		18%		21%
DOE
	Infrastructure & Environment	$	5.6	$	5.9	$	7.2
	Federal Services		27.7		26.8		13.7
	Energy & Construction		956.4		1,236.3		1,182.6
Total DOE		$	989.7	$	1,269.0	$	1,203.5
Revenues from DOE as a percentage of our consolidated revenues			9%		13%		13%
Revenues from the federal market sector as a percentage of our consolidated revenues			40%		49%		49%

		Year Ended
		December 28,		December 30,		December 31,
(In millions, except percentages)		2012		2011		2010
The U.S. Army (1)
	Infrastructure & Environment	$	128.4	$	141.7	$	167.0
	Federal Services		1,495.8		1,351.1		1,408.7
	Energy & Construction		130.8		199.5		346.6
Total U.S. Army		$	1,755.0	$	1,692.3	$	1,922.3
Revenues from the U.S. Army as a percentage of our consolidated revenues			16%		18%		21%
DOE
	Infrastructure & Environment	$	5.6	$	5.9	$	7.2
	Federal Services		27.7		26.8		13.7
	Energy & Construction		956.4		1,236.3		1,182.6
Total DOE		$	989.7	$	1,269.0	$	1,203.5
Revenues from DOE as a percentage of our consolidated revenues			9%		13%		13%
Revenues from the federal market sector as a percentage of our consolidated revenues			40%		49%		49%

• The U.S. Army includes U.S. Army Corps of Engineers.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 31, 2010
Comprehensive income (loss):
Net income (loss) including noncontrolling interests	$ 425.8	$ (337.3)	$ 386.2
Pension and post-retirement related adjustments, net of tax	(26.6)	(62.7)	(0.7)
Foreign currency translation adjustments, net of tax	24.8	(11.2)	8.8
Loss on derivative instruments, net of tax	(0.6)
Unrealized gain on interest rate swap, net of tax			4.2
Comprehensive income (loss)	423.4	(411.2)	398.5
Noncontrolling interests in comprehensive income of consolidated subsidiaries	(115.2)	(128.5)	(98.3)
Comprehensive income (loss) attributable to URS	$ 308.2	$ (539.7)	$ 300.2

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EARNINGS PER SHARE

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

EARNINGS PER SHARE

NOTE 3. EARNINGS PER SHARE

In our computation of diluted earnings per share (“EPS”), we exclude the potential shares related to stock options that are issued and unexercised where the exercise price exceeds the average market price of our common stock during the period. We also exclude nonvested restricted stock awards and units that have an anti-dilutive effect on EPS or that currently have not met performance conditions.

The following table summarizes the components of weighted-average common shares outstanding for both basic and diluted EPS:

	Year Ended
	December 28,	December 30,	December 31,
(In millions)	2012	2011	2010
Weighted-average common stock shares outstanding (1)	74.3	77.3	81.0
Effect of dilutive stock options, restricted stock awards and units and employee stock purchase plan shares (2)	0.2	—	0.3
Weighted-average common stock outstanding – Diluted	74.5	77.3	81.3

• Weighted-average shares of common stock outstanding is net of treasury stock.

• No dilution was applied to our basic weighted-average shares outstanding for the year ended December 30, 2011 due to a goodwill impairment charge that resulted in a net loss for the year.

	December 28,	December 30,	December 31,
(In millions)	2012	2011	2010
Anti-dilutive equity awards not included above	1.1	1.0	0.9

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INCOME TAXES (DETAILS) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 28, 2012	Sep. 28, 2012	Jun. 29, 2012	Mar. 30, 2012	Dec. 30, 2011	Sep. 30, 2011	Jul. 01, 2011	Apr. 01, 2011	Dec. 28, 2012	Dec. 30, 2011	Dec. 31, 2010
Effective income tax rate continuing operations tax rate reconciliation [Abstract]
U.S. statutory rate applied to income (loss) before taxes ($)									$ 215.5	$ (85.9)	$ 179.8
U.S. statutory rate applied to income (loss) before taxes (%)									35.00%	35.00%	35.00%
State taxes, net of federal benefit ($)									26.3	11.2	17.9
State taxes, net of federal benefit (%)									4.30%	(4.60%)	3.50%
Change in indefinite reinvestment assertion ($)											(57.2)
Change in indefinite reinvestment assertion (%)											(11.10%)
Adjustments to valuation allowances ($)									4.0	19.6	14.6
Adjustments to valuation allowances (%)									0.60%	(8.00%)	2.80%
Adjustments related to changing foreign tax credits to deductions ($)											12.6
Adjustments related to changing foreign tax credits to deductions (%)											2.50%
Foreign income taxed at rates other than 35% ($)									(26.0)	(28.2)	(19.8)
Foreign income taxed at rates other than 35% (%)									(4.20%)	11.50%	(3.90%)
Goodwill impairment ($)										207.1
Goodwill impairment (%)										(84.40%)
Exclusion of tax on noncontrolling interests ($)									(29.9)	(30.1)	(23.7)
Exclusion of tax on noncontrolling interests (%)									(4.90%)	12.30%	(4.60%)
Other adjustments ($)									0	(1.9)	3.4
Other adjustments (%)									0.00%	0.80%	0.60%
Total income tax expense (benefit)	34.7	66.1	40.5	48.6	46.8	(39.5)	45.5	39.0	189.9	91.8	127.6
Effective income tax rate %								(3.60%)	30.80%	(37.40%)	24.80%
Other income tax disclosure (Textuals) [Abstract]
Federal, state and foreign NOL carryovers resulted in a deferred tax asset	132.2								132.2
Deferred tax assets valuation allowance	106.0								106.0
Tax-deductible portion of acquired goodwill	223.2				316.5				223.2	316.5
Estimated tax deduction for goodwill for subsequent year	85.5								85.5
Indefinite reinvestment of undistributed foreign earnings									499.1
Increase in net income attributable to indefinite reinvestment of funds received from sale of equity interest foreign subsidiary	42.1								42.1
Federal [Member]
Operating loss carryforwards [Line Items]
Operating loss carryforwards	15.9								15.9
Operating loss carryforwards expiration dates									These federal NOL carryovers expire in years 2021 through 2025. These federal NOL carryovers expire in years 2021 through 2025.
State [Member]
Operating loss carryforwards [Line Items]
Operating loss carryforwards	297.0								297.0
Operating loss carryforwards expiration dates									These state NOL carryovers expire in years 2013 through 2031. These state NOL carryovers expire in years 2013 through 2031.
Foreign [Member]
Operating loss carryforwards [Line Items]
Operating loss carryforwards	$ 544.4								$ 544.4
Operating loss carryforwards expiration dates									The majority of the foreign NOL carryovers have no expiration date. The majority of the foreign NOL carryovers have no expiration date.

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SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 20.SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following table sets forth selected quarterly financial data for the years ended December 28, 2012 and December 30, 2011. The selected quarterly financial data presented below should be read in conjunction with the rest of the information in this report.

		2012 Quarters Ended
(In millions, except per share data)		March 30		June 29		September 28		December 28
Revenues		$	2,361.5	$	2,690.7	$	2,947.6	$	2,972.7
Cost of revenues			(2,203.2)		(2,527.5)		(2,753.3)		(2,810.5)
Acquisition-related expenses (1)			(5.6)		(11.3)		0.8		—
Operating income (loss) (2)			161.4		149.5		203.6		171.4
Other income (expense) (3)			2.5		(9.2)		10.8		(3.6)
Income tax benefit (expense)			(48.6)		(40.5)		(66.1)		(34.7)
Net income including noncontrolling interests			105.5		79.1		127.8		113.4
Noncontrolling interests in income of consolidated subsidiaries			(25.8)		(25.5)		(21.1)		(42.8)
Net income attributable to URS			79.7		53.6		106.7		70.6
Earnings per share:
	Basic	$	1.08	$	0.72	$	1.43	$	0.95
	Diluted	$	1.07	$	0.72	$	1.43	$	0.95
Weighted-average shares outstanding:
	Basic		74.0		74.2		74.5		74.5
	Diluted		74.3		74.6		74.6		74.6
		2011 Quarters Ended
(In millions, except per share data)		April 1		July 1		September 30		December 30
Revenues		$	2,319.8	$	2,360.3	$	2,471.7	$	2,393.2
Cost of revenues			(2,202.7)		(2,228.3)		(2,300.1)		(2,257.7)
Acquisition-related expenses			—		(1.0)		—		—
Restructuring costs (4)			—		—		—		(5.5)
Goodwill impairment (5)			—		—		(798.1)		(27.7)
Operating income (6)			132.1		150.6		(620.2)		114.1
Income tax benefit (expense)			(39.0)		(45.5)		39.5		(46.8)
Net income (loss) including noncontrolling interests			87.9		100.0		(585.8)		60.6
Noncontrolling interests in income of consolidated subsidiaries			(25.8)		(33.2)		(37.3)		(32.2)
Net income (loss) attributable to URS			62.1		66.8		(623.1)		28.4
Earnings (loss) per share:
	Basic	$	0.79	$	0.87	$	(8.05)	$	0.37
	Diluted	$	0.79	$	0.86	$	(8.05)	$	0.37
Weighted-average shares outstanding:
	Basic		78.4		77.2	$	77.4	$	76.3
	Diluted		78.8		77.7	$	77.4	$	76.4

• For the year ended December 28, 2012, we recorded acquisition-related expenses in connection with our acquisition of Flint. See further discussion in Note 8, “Acquisitions.”
• For the first quarter of 2012, we revised our operating income from $163.9 million, as previously reported in our 10-Q, to $161.4 million due to the reclassification of a $2.5 million gain recognized on foreign currency forward contracts from “General and administrative expenses” to “Other income (expenses)” on our Consolidated Statements of Operations. This revision had no impact on net income attributable to URS or EPS.
• During fiscal 2012, “Other income (expenses)” represents foreign currency gains (losses) recognized on intercompany financing arrangements and foreign currency forward contracts. See further discussion in Note 11, “Fair Value of Debt Instruments and Derivative Instruments.”
• For the year ended December 30, 2011, we recorded restructuring costs resulting from the integration of Scott Wilson into our existing U.K. and European business and necessary responses to reductions in market opportunities in Europe. See further discussion in Note 17, “Commitments and Contingencies.”
• For the third quarter of 2011, we recorded an estimated goodwill impairment charge of $798.1 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $699.3 million and $9.03, respectively.

  During the fourth quarter of 2011, we finalized our step-two goodwill impairment analysis as of September 30, 2011 and recorded an additional goodwill impairment charge of $27.7 million. On a net, after-tax basis, this transaction resulted in decreases to net income and diluted EPS of $32.9 million and $0.43, respectively. See further discussion in Note 9, “Goodwill and Intangible Assets.”

• In October 2010, we received notice of a ruling on the priority of claims against a bankrupt client made by one of our unconsolidated joint ventures related to the SR-125 road project in California. The judge ruled against our joint venture's position, finding that its mechanic's lien did not have priority over the senior lenders. As a result of the court's decision, we recorded a pre-tax non-cash asset impairment charge of $25.0 million or $0.18 per share on an after-tax basis in the third quarter of 2010. During the second quarter of 2011, we recognized a $9.5 million favorable claim settlement on this project.

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INCOME TAXES (TABLES)

12 Months Ended

Dec. 28, 2012

Effective income tax rate continuing operations tax rate reconciliation [Abstract]

Schedule of components of income tax expense [Table Text Block]

				Year Ended
				December 28,		December 30,		December 31,
(In millions)				2012		2011		2010
Current:
	Federal			$	152.3	$	78.3	$	85.9
	State and local				35.9		17.6		19.0
	Foreign				18.3		19.2		11.8
		Subtotal			206.5		115.1		116.7
Deferred:
	Federal				(10.5)		(19.0)		8.5
	State and local				1.0		(0.8)		3.9
	Foreign				(7.1)		(3.5)		(1.5)
		Subtotal			(16.6)		(23.3)		10.9
			Total income tax expense	$	189.9	$	91.8	$	127.6

Schedule of income before income tax and noncontrolling interests, domestic and foreign [Table Text Block]

			Year Ended
			December 28,		December 30,		December 31,
(In millions)			2012		2011		2010
Income (loss) before income taxes and noncontrolling interests:
	United States		$	534.9	$	(316.2)	$	430.9
	International			80.8		70.7		82.9
		Total income (loss) before income taxes and noncontrolling interests	$	615.7	$	(245.5)	$	513.8

Schedule of deferred tax assets and liabilities [Table Text Block]

				Year Ended
				December 28,		December 30,		December 31,
(In millions)				2012		2011		2010
Current:
	Receivable allowances			$	6.7	$	4.5	$	6.1
	Net operating losses				1.6		1.2		3.9
	Estimated loss accruals				43.6		39.8		38.7
	State income taxes				0.1		2.9		3.2
	Payroll-related accruals				89.8		85.0		74.4
	Self-insurance reserves				8.8		6.8		4.9
	Unearned revenue				3.1		(2.0)		0.1
	Deferred compensation and post-retirement benefit accruals				3.2		3.1		3.7
	Other				4.2		2.0		1.4
		Gross current deferred tax assets			161.1		143.3		136.4
	Valuation allowance				(10.5)		(8.1)		(7.4)
		Current deferred tax assets			150.6		135.2		129.0
	Revenue on retained accounts receivable				(17.0)		(7.0)		(5.4)
	Timing of income from partnerships and limited liability companies				(25.6)		(13.8)		8.2
	Costs and accrued earnings in excess of billings on contracts				(35.1)		(40.7)		(37.4)
	Prepaid expenses				(5.3)		(10.7)		(11.1)
		Current deferred tax liabilities			(83.0)		(72.2)		(45.7)
			Net current deferred tax assets	$	67.6	$	63.0	$	83.3

				Year Ended
				December 28,		December 30,		December 31,
(In millions)				2012		2011		2010
Non-Current:
	Deferred compensation and post-retirement benefit accruals			$	144.6	$	111.9	$	104.0
	Self-insurance reserves				29.4		33.5		35.0
	Property, plant and equipment				2.0		9.2		3.3
	Foreign tax credits				7.1		7.1		7.1
	Income tax credits				8.0		3.4		3.2
	Rental accruals				21.6		16.3		9.2
	Net operating losses				130.6		107.2		108.0
	Other reserves				18.8		14.7		25.3
		Gross non-current deferred tax assets			362.1		303.3		295.1
	Valuation allowance				(127.1)		(115.9)		(96.7)
		Net non-current deferred tax assets			235.0		187.4		198.4
	Goodwill and other intangibles				(348.1)		(273.0)		(343.6)
	Foreign subsidiary outside basis difference				(2.0)		(0.7)		(0.3)
	Domestic subsidiary outside basis difference				(144.8)		(144.8)		(145.5)
	Market value adjustment on acquired assets				(4.4)		(4.4)		(4.4)
	Property, plant and equipment				(64.0)		(41.0)		(31.5)
		Non-current deferred tax liabilities			(563.3)		(463.9)		(525.3)
			Net non-current deferred tax liabilities	$	(328.3)	$	(276.5)	$	(326.9)

Schedule of effective income tax rate reconciliation [Table Text Block]

		Year Ended
		December 28, 2012			December 30, 2011			December 31, 2010
(In millions, except for percentages)		Amount		Tax Rate	Amount		Tax Rate	Amount		Tax Rate
U.S. statutory rate applied to income (loss) before taxes		$	215.5	35.0%	$	(85.9)	35.0%	$	179.8	35.0%
State taxes, net of federal benefit			26.3	4.3%		11.2	(4.6%)		17.9	3.5%
Change in indefinite reinvestment assertion			—	—		—	—		(57.2)	(11.1%)
Adjustments to valuation allowances			4.0	0.6%		19.6	(8.0%)		14.6	2.8%
Adjustments related to changing foreign tax credits to deductions			—	—		—	—		12.6	2.5%
Foreign income taxed at rates other than 35%			(26.0)	(4.2%)		(28.2)	11.5%		(19.8)	(3.9%)
Goodwill impairment			—	—		207.1	(84.4%)		—	—
Exclusion of tax on noncontrolling interests			(29.9)	(4.9%)		(30.1)	12.3%		(23.7)	(4.6%)
Other adjustments			—	—		(1.9)	0.8%		3.4	0.6%
	Total income tax expense	$	189.9	30.8%	$	91.8	(37.4%)	$	127.6	24.8%

Schedule of unrecognized tax benefits reconciliation [Table Text Block]

	Year Ended
	December 28,		December 30,		December 31,
(In millions)	2012		2011		2010
Unrecognized tax benefits beginning balance	$	16.7	$	21.5	$	25.2
Gross increase – tax positions in prior years		1.2		2.7		1.1
Gross decrease – tax positions in prior years		(1.2)		(3.6)		(1.5)
Gross increase – current period tax positions		1.2		—		1.4
Settlements		(0.2)		(0.2)		(0.2)
Lapse of statute of limitations		(2.4)		(3.7)		(5.3)
Unrecognized tax benefits acquired in current year		0.1		—		0.8
Unrecognized tax benefits ending balance	$	15.4	$	16.7	$	21.5

	Year Ended
	December 28,		December 30,		December 31,
(In millions)	2012		2011		2010
Unrecognized tax benefits beginning balance	$	16.7	$	21.5	$	25.2
Gross increase – tax positions in prior years		1.2		2.7		1.1
Gross decrease – tax positions in prior years		(1.2)		(3.6)		(1.5)
Gross increase – current period tax positions		1.2		—		1.4
Settlements		(0.2)		(0.2)		(0.2)
Lapse of statute of limitations		(2.4)		(3.7)		(5.3)
Unrecognized tax benefits acquired in current year		0.1		—		0.8
Unrecognized tax benefits ending balance	$	15.4	$	16.7	$	21.5

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INCOME TAXES

12 Months Ended

Dec. 28, 2012

Notes to Financial Statements [Abstract]

INCOME TAXES

As of December 28, 2012, our federal net operating loss (“NOL”) carryovers were approximately $15.9 million. These federal NOL carryovers expire in years 2021 through 2025. In addition to the federal NOL carryovers, there are also state income tax NOL carryovers in various taxing jurisdictions of approximately $297.0 million. These state NOL carryovers expire in years 2013 through 2031. There are also foreign NOL carryovers in various jurisdictions of approximately $544.4 million. The majority of the foreign NOL carryovers have no expiration date. At December 28, 2012, the federal, state and foreign NOL carryovers resulted in a deferred tax asset of $132.2 million with a valuation allowance of $106.0 million established against this deferred tax asset. None of the remaining net deferred tax assets related to NOL carryovers is individually material and management believes that it is more likely than not they will be realized. Full recovery of our NOL carryovers will require that the appropriate legal entity generate taxable income in the future at least equal to the amount of the NOL carryovers within the applicable taxing jurisdiction.

As of December 28, 2012 and December 30, 2011, we have remaining tax-deductible goodwill of $223.2 million and $316.5 million, respectively, resulting from acquisitions. The amortization of this goodwill is deductible over various periods ranging up to 14 years.The tax deduction for goodwill for 2013 is expected to be approximately $85.5 million and is expected to be substantially lower beginning in 2015.

The 37.4% negative effective tax rate for the year ended December 30, 2011differs from the statutory rate of 35% primarily due to the goodwill impairment charge taken during the year, a substantial portion of which is not deductible for tax purposes.

The effective income tax rate for the year ended December 31, 2010 is less than the statutory rate of 35% primarily due to a change in our indefinite reinvestment assertion during the year. During our fiscal year 2010, we determined that our plans to expand our international presence would require that we indefinitely reinvest the earnings of all of our foreign subsidiaries offshore, which resulted in the reversal of the net U.S. deferred tax liability on the undistributed earnings of all foreign subsidiaries. This benefit increased net income attributable to URS by $42.1 million.

	Year Ended
	December 28,		December 30,		December 31,
(In millions)	2012		2011		2010
Unrecognized tax benefits beginning balance	$	16.7	$	21.5	$	25.2
Gross increase – tax positions in prior years		1.2		2.7		1.1
Gross decrease – tax positions in prior years		(1.2)		(3.6)		(1.5)
Gross increase – current period tax positions		1.2		—		1.4
Settlements		(0.2)		(0.2)		(0.2)
Lapse of statute of limitations		(2.4)		(3.7)		(5.3)
Unrecognized tax benefits acquired in current year		0.1		—		0.8
Unrecognized tax benefits ending balance	$	15.4	$	16.7	$	21.5

We recognize accrued interest related to unrecognized tax benefits in interest expense and penalties as a component of tax expense. During the years ended December 28, 2012, December 30, 2011 and December 31, 2010, we recognized $(1.4) million, $(1.4) million and $1.5 million, respectively, in interest and penalties. We have accrued approximately $5.3 million, $6.7 million and $8.1 million in interest and penalties as of December 28, 2012,December 30, 2011 and December 31, 2010, respectively. With a few exceptions, in jurisdictions where our tax liability is immaterial, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2008.

It is reasonably possible that unrecognized tax benefits will decrease up to $2.7million within the next twelve months as a result of the settlement of tax audits. The timing and amounts of these audit settlements are uncertain, but we do not expect any of these settlements to have a significant impact on our financial position or results of operations.

NOTE13. INCOME TAXES

The components of income tax expense were as follows:

				Year Ended
				December 28,		December 30,		December 31,
(In millions)				2012		2011		2010
Current:
	Federal			$	152.3	$	78.3	$	85.9
	State and local				35.9		17.6		19.0
	Foreign				18.3		19.2		11.8
		Subtotal			206.5		115.1		116.7
Deferred:
	Federal				(10.5)		(19.0)		8.5
	State and local				1.0		(0.8)		3.9
	Foreign				(7.1)		(3.5)		(1.5)
		Subtotal			(16.6)		(23.3)		10.9
			Total income tax expense	$	189.9	$	91.8	$	127.6

• For fiscal year 2010, the tax amounts were revised as discussed below in the “Revision of Previously Issued Financial Statements” section.

The income before income taxes, by geographic area, was as follows:

			Year Ended
			December 28,		December 30,		December 31,
(In millions)			2012		2011		2010
Income (loss) before income taxes and noncontrolling interests:
	United States		$	534.9	$	(316.2)	$	430.9
	International			80.8		70.7		82.9
		Total income (loss) before income taxes and noncontrolling interests	$	615.7	$	(245.5)	$	513.8

As of December 28, 2012, our federal net operating loss (“NOL”) carryovers were approximately $15.9 million. These federal NOL carryovers expire in years 2021 through 2025. In addition to the federal NOL carryovers, there are also state income tax NOL carryovers in various taxing jurisdictions of approximately $297.0 million. These state NOL carryovers expire in years 2013 through 2031. There are also foreign NOL carryovers in various jurisdictions of approximately $544.4 million. The majority of the foreign NOL carryovers have no expiration date. At December 28, 2012, the federal, state and foreign NOL carryovers resulted in a deferred tax asset of $132.2 million with a valuation allowance of $106.0 million established against this deferred tax asset. None of the remaining net deferred tax assets related to NOL carryovers is individually material and management believes that it is more likely than not they will be realized. Full recovery of our NOL carryovers will require that the appropriate legal entity generate taxable income in the future at least equal to the amount of the NOL carryovers within the applicable taxing jurisdiction.

As of December 28, 2012 and December 30, 2011, we have remaining tax-deductible goodwill of $223.2 million and $316.5 million, respectively, resulting from acquisitions. The amortization of this goodwill is deductible over various periods ranging up to 14 years.The tax deduction for goodwill for 2013 is expected to be approximately $85.5 million and is expected to be substantially lower beginning in 2015.

The significant components of our deferred tax assets and liabilities were as follows:

				Year Ended
				December 28,		December 30,		December 31,
(In millions)				2012		2011		2010
Current:
	Receivable allowances			$	6.7	$	4.5	$	6.1
	Net operating losses				1.6		1.2		3.9
	Estimated loss accruals				43.6		39.8		38.7
	State income taxes				0.1		2.9		3.2
	Payroll-related accruals				89.8		85.0		74.4
	Self-insurance reserves				8.8		6.8		4.9
	Unearned revenue				3.1		(2.0)		0.1
	Deferred compensation and post-retirement benefit accruals				3.2		3.1		3.7
	Other				4.2		2.0		1.4
		Gross current deferred tax assets			161.1		143.3		136.4
	Valuation allowance				(10.5)		(8.1)		(7.4)
		Current deferred tax assets			150.6		135.2		129.0
	Revenue on retained accounts receivable				(17.0)		(7.0)		(5.4)
	Timing of income from partnerships and limited liability companies				(25.6)		(13.8)		8.2
	Costs and accrued earnings in excess of billings on contracts				(35.1)		(40.7)		(37.4)
	Prepaid expenses				(5.3)		(10.7)		(11.1)
		Current deferred tax liabilities			(83.0)		(72.2)		(45.7)
			Net current deferred tax assets	$	67.6	$	63.0	$	83.3

				Year Ended
				December 28,		December 30,		December 31,
(In millions)				2012		2011		2010
Non-Current:
	Deferred compensation and post-retirement benefit accruals			$	144.6	$	111.9	$	104.0
	Self-insurance reserves				29.4		33.5		35.0
	Property, plant and equipment				2.0		9.2		3.3
	Foreign tax credits				7.1		7.1		7.1
	Income tax credits				8.0		3.4		3.2
	Rental accruals				21.6		16.3		9.2
	Net operating losses				130.6		107.2		108.0
	Other reserves				18.8		14.7		25.3
		Gross non-current deferred tax assets			362.1		303.3		295.1
	Valuation allowance				(127.1)		(115.9)		(96.7)
		Net non-current deferred tax assets			235.0		187.4		198.4
	Goodwill and other intangibles				(348.1)		(273.0)		(343.6)
	Foreign subsidiary outside basis difference				(2.0)		(0.7)		(0.3)
	Domestic subsidiary outside basis difference				(144.8)		(144.8)		(145.5)
	Market value adjustment on acquired assets				(4.4)		(4.4)		(4.4)
	Property, plant and equipment				(64.0)		(41.0)		(31.5)
		Non-current deferred tax liabilities			(563.3)		(463.9)		(525.3)
			Net non-current deferred tax liabilities	$	(328.3)	$	(276.5)	$	(326.9)

We have indefinitely reinvested $499.1 million of undistributed earnings of our foreign operations outside of our U.S. tax jurisdiction as ofDecember 28, 2012. No deferred tax liability has been recognized for the remittance of such earnings to the U.S. since it is our intention to utilize these earnings in our foreign operations. The determination of the amount of deferred taxes on these earnings is not practicable since the computation would depend on a number of factors that cannot be known unless a decision is made to repatriate the earnings. Some of our foreign earnings are indefinitely reinvested between other foreign countries.

The difference between total tax expense and the amount computed by applying the statutory federal income tax rate to income before taxes was as follows:

		Year Ended
		December 28, 2012			December 30, 2011			December 31, 2010
(In millions, except for percentages)		Amount		Tax Rate	Amount		Tax Rate	Amount		Tax Rate
U.S. statutory rate applied to income (loss) before taxes		$	215.5	35.0%	$	(85.9)	35.0%	$	179.8	35.0%
State taxes, net of federal benefit			26.3	4.3%		11.2	(4.6%)		17.9	3.5%
Change in indefinite reinvestment assertion			—	—		—	—		(57.2)	(11.1%)
Adjustments to valuation allowances			4.0	0.6%		19.6	(8.0%)		14.6	2.8%
Adjustments related to changing foreign tax credits to deductions			—	—		—	—		12.6	2.5%
Foreign income taxed at rates other than 35%			(26.0)	(4.2%)		(28.2)	11.5%		(19.8)	(3.9%)
Goodwill impairment			—	—		207.1	(84.4%)		—	—
Exclusion of tax on noncontrolling interests			(29.9)	(4.9%)		(30.1)	12.3%		(23.7)	(4.6%)
Other adjustments			—	—		(1.9)	0.8%		3.4	0.6%
	Total income tax expense	$	189.9	30.8%	$	91.8	(37.4%)	$	127.6	24.8%

• The prior period amounts were revised as discussed below in the “Revision of Previously Issued Financial Statements” section.

The 37.4% negative effective tax rate for the year ended December 30, 2011differs from the statutory rate of 35% primarily due to the goodwill impairment charge taken during the year, a substantial portion of which is not deductible for tax purposes.

The effective income tax rate for the year ended December 31, 2010 is less than the statutory rate of 35% primarily due to a change in our indefinite reinvestment assertion during the year. During our fiscal year 2010, we determined that our plans to expand our international presence would require that we indefinitely reinvest the earnings of all of our foreign subsidiaries offshore, which resulted in the reversal of the net U.S. deferred tax liability on the undistributed earnings of all foreign subsidiaries. This benefit increased net income attributable to URS by $42.1 million.

	Year Ended
	December 28,		December 30,		December 31,
(In millions)	2012		2011		2010
Unrecognized tax benefits beginning balance	$	16.7	$	21.5	$	25.2
Gross increase – tax positions in prior years		1.2		2.7		1.1
Gross decrease – tax positions in prior years		(1.2)		(3.6)		(1.5)
Gross increase – current period tax positions		1.2		—		1.4
Settlements		(0.2)		(0.2)		(0.2)
Lapse of statute of limitations		(2.4)		(3.7)		(5.3)
Unrecognized tax benefits acquired in current year		0.1		—		0.8
Unrecognized tax benefits ending balance	$	15.4	$	16.7	$	21.5

We recognize accrued interest related to unrecognized tax benefits in interest expense and penalties as a component of tax expense. During the years ended December 28, 2012, December 30, 2011 and December 31, 2010, we recognized $(1.4) million, $(1.4) million and $1.5 million, respectively, in interest and penalties. We have accrued approximately $5.3 million, $6.7 million and $8.1 million in interest and penalties as of December 28, 2012,December 30, 2011 and December 31, 2010, respectively. With a few exceptions, in jurisdictions where our tax liability is immaterial, we are no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before 2008.

It is reasonably possible that unrecognized tax benefits will decrease up to $2.7million within the next twelve months as a result of the settlement of tax audits. The timing and amounts of these audit settlements are uncertain, but we do not expect any of these settlements to have a significant impact on our financial position or results of operations.