10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Quarterly Report on

FORM 10-Q

(Mark one)

x    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 27, 2014

oTransition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 1-7463

JACOBS ENGINEERING GROUP INC.

(Exact name of Registrant as specified in its charter)

Delaware	95-4081636
(State of incorporation)	(I.R.S. employer identification number)
155 North Lake Avenue, Pasadena, California	91101
(Address of principal executive offices)	(Zip code)

(626) 578 – 3500

(Registrant’s telephone number, including area code)

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:    x  Yes    o  No

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    o  No

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 the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	o
Non-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). 

o  Yes   x  No

Number of shares of common stock outstanding at July 29, 2014: 133,056,998

JACOBS ENGINEERING GROUP INC.

INDEX TO FORM 10-Q

			Page No.
PART I	FINANCIAL INFORMATION
	Item 1.	Financial Statements
		Consolidated Balance Sheets	3
		Consolidated Statements of Earnings - Unaudited	4
		Consolidated Statements of Comprehensive Income - Unaudited	5
		Consolidated Statements of Cash Flows - Unaudited	6
		Notes to Consolidated Financial Statements - Unaudited	8
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
	Item 4.	Controls and Procedures	23
PART II	OTHER INFORMATION
	Item 1.	Legal Proceedings	23
	Item 1A.	Risk Factors	23
	Item 4	Mine Safety Disclosure	23
	Item 6.	Exhibits	24
		SIGNATURES

Part I - FINANCIAL INFORMATION

Item 1. Financial Statements.

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share information)

	June 27, 2014			September 27, 2013
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	772,613		$	1,256,405
Receivables	2,736,010			2,548,990
Deferred income taxes	147,956			131,086
Prepaid expenses and other	96,537			103,077
Total current assets	3,753,116			4,039,558
Property, Equipment and Improvements, Net	455,626			379,296
Other Noncurrent Assets:
Goodwill	2,938,686			2,022,831
Intangibles	478,122			217,904
Miscellaneous	707,029			614,555
Total other non-current assets	4,123,837			2,855,290
	$	8,332,579		$	7,274,144
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Notes payable	$	41,351		$	22,783
Accounts payable	421,132			457,893
Accrued liabilities	1,319,652			1,029,816
Billings in excess of costs	366,980			345,097
Income taxes payable	20,823			32,030
Total current liabilities	2,169,938			1,887,619
Long-term Debt	789,416			415,086
Other Deferred Liabilities	840,567			723,104
Commitments and Contingencies
Stockholders’ Equity:
Capital stock:
Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none	—			—
Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—133,009,553 shares and 131,639,196 shares, respectively	133,010			131,639
Additional paid-in capital	1,167,221			1,084,624
Retained earnings	3,504,788			3,300,961
Accumulated other comprehensive loss	(303,992		)	(304,127		)
Total Jacobs stockholders’ equity	4,501,027			4,213,097
Noncontrolling interests	31,631			35,238
Total Group stockholders’ equity	4,532,658			4,248,335
	$	8,332,579		$	7,274,144

See the accompanying Notes to Consolidated Financial Statements.

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

For the Three and Nine Months Ended June 27, 2014 and June 28, 2013

(In thousands, except per share information)

(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Revenues	$	3,231,791		$	3,080,995		$	9,476,715		$	8,675,720
Costs and Expenses:
Direct cost of contracts	(2,670,052		)	(2,613,991		)	(7,944,731		)	(7,308,092		)
Selling, general and administrative expenses	(437,802		)	(298,645		)	(1,140,565		)	(873,797		)
Operating Profit	123,937			168,359			391,419			493,831
Other Income (Expense):
Interest income	2,624			1,332			7,425			3,521
Interest expense	(5,565		)	(2,786		)	(10,490		)	(9,515		)
Gain on sale of intellectual property, net	—			—			12,147			—
Miscellaneous income (expense), net	(2,950		)	1,518			(3,139		)	(1,195		)
Total other income (expense), net	(5,891		)	64			5,943			(7,189		)
Earnings Before Taxes	118,046			168,423			397,362			486,642
Income Tax Expense	(46,737		)	(56,334		)	(136,304		)	(162,941		)
Net Earnings of the Group	71,309			112,089			261,058			323,701
Net Earnings Attributable to Noncontrolling Interests	(6,467		)	(3,218		)	(19,024		)	(11,419		)
Net Earnings Attributable to Jacobs	$	64,842		$	108,871		$	242,034		$	312,282
Net Earnings Per Share:
Basic	$	0.50		$	0.84		$	1.86		$	2.42
Diluted	$	0.49		$	0.83		$	1.83		$	2.39

See the accompanying Notes to Consolidated Financial Statements including the Company's note on Other Comprehensive Income for a presentation of amounts reclassified to net earnings during the period.

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three and Nine Months Ended June 27, 2014 and June 28, 2013

(In thousands)

(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Net Earnings of the Group	$	71,309		$	112,089		$	261,058		$	323,701
Other Comprehensive Income (Loss):
Foreign currency translation adjustment	29,147			(14,828		)	17,267			(38,964		)
Gain (loss) on cash flow hedges	1,815			584			1,912			(54		)
Change in pension liabilities	(20,160		)	2,198			(29,308		)	28,123
Other comprehensive income (loss) before taxes	10,802			(12,046		)	(10,129		)	(10,895		)
Income Tax Benefit (Expense):
Foreign currency translation adjustments	—			—			3,250			—
Cash flow hedges	(525		)	(211		)	(646		)	(13		)
Change in pension liabilities	5,245			(758		)	7,660			(7,910		)
Income Tax Benefit (Expense)	4,720			(969		)	10,264			(7,923		)
Net Other Comprehensive (Loss) Income	15,522			(13,015		)	135			(18,818		)
Net Comprehensive Income of the Group	86,831			99,074			261,193			304,883
Net Comprehensive Income Attributable to      Noncontrolling Interests	(6,467		)	(3,218		)	(19,024		)	(11,419		)
Net Comprehensive Income Attributable to Jacobs	$	80,364		$	95,856		$	242,169		$	293,464

See the accompanying Notes to Consolidated Financial Statements including the Company's note on Other Comprehensive Income for a presentation of amounts reclassified to net earnings during the period.

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended June 27, 2014 and June 28, 2013 (In thousands) (Unaudited)
	June 27, 2014			June 28, 2013
Cash Flows from Operating Activities:
Net earnings attributable to the Group	$	261,058		$	323,701
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization:
Property, equipment and improvements	70,701			49,828
Intangible assets	35,329			22,327
Gain on sale of certain intellectual property	(12,147		)	—
Stock based compensation	32,546			28,493
Tax deficiency from stock based compensation	140			3,292
Equity in earnings of operating ventures, net	(7,065		)	(11,759		)
Change in pension plan obligations	(10,245		)	(3,956		)
Change in deferred compensation plans	(5,957		)	(6,658		)
Losses on sales of assets, net	1,595			465
Changes in certain assets and liabilities, excluding the effects of businesses acquired:
Receivables	171,861			(32,551		)
Prepaid expenses and other current assets	20,065			6,910
Accounts payable	(87,753		)	(27,674		)
Accrued liabilities	66,456			46,445
Billings in excess of costs	(28,029		)	37,306
Income taxes payable	(5,225		)	(12,036		)
Deferred income taxes	(12,493		)	2,925
Other deferred liabilities	7,058			(2,259		)
Change in long-term receivables	2,828			12,913
Long-term insurance prepayment	(17,602		)	—
Other, net	2,092			(514		)
Net cash provided by operating activities	485,213			437,198
Cash Flows from Investing Activities:
Additions to property and equipment	(92,033		)	(91,520		)
Disposals of property and equipment	966			3,561
Change in cash related to consolidation of joint ventures	—			4,331
Purchases of investments	(25,539		)	(7		)
Sales of investments	—			11
Acquisitions of businesses, net of cash acquired	(1,226,352		)	(22,313		)
Net cash used for investing activities	(1,342,958		)	(105,937		)

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended June 27, 2014 and June 28, 2013 (In thousands) (Unaudited) (Continued)
	June 27, 2014			June 28, 2013
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	669,681			—
Repayments of long-term borrowings	(302,386		)	(87,851		)
Proceeds from short-term borrowings	174,374			28,312
Repayments of short-term borrowings	(189,490		)	(15,602		)
Proceeds from issuances of common stock	34,175			35,227
Tax deficiency from stock based compensation	(140		)	(3,292		)
Distributions to noncontrolling interests	(6,043		)	(7,974		)
Net cash provided by (used for) financing activities	380,171			(51,180		)
Effect of Exchange Rate Changes	(6,218		)	(17,021		)
Net (Decrease) Increase in Cash and Cash Equivalents	(483,792		)	263,060
Cash and Cash Equivalents at the Beginning of the Period	1,256,405			1,032,457
Cash and Cash Equivalents at the End of the Period	$	772,613		$	1,295,517

See the accompanying Notes to Consolidated Financial Statements.

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

Basis of Presentation

Unless the context otherwise requires:

• References herein to "Jacobs" are to Jacobs Engineering Group Inc. and its predecessors;

• References herein to the "Company", "we", "us" or "our" are to Jacobs Engineering Group Inc. and its consolidated subsidiaries; and

• References herein to the "Group" are to the combined economic interests and activities of the Company and the persons and entities holding noncontrolling interests in our consolidated subsidiaries.

The accompanying consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted. Readers of this report should also read our consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 27, 2013 ("2013 Form 10-K") as well as Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations, which is also included in our 2013 Form 10-K.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements at June 27, 2014, and for the three and nine month periods ended June 27, 2014 and June 28, 2013.

Our interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Please refer to Note 16 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K for the definitions of certain terms used herein.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with U.S. GAAP requires us to employ estimates and make assumptions that affect the reported amounts of certain assets and liabilities; the revenues and expenses reported for the periods covered by the accompanying consolidated financial statements; and certain amounts disclosed in these Notes to the Consolidated Financial Statements. Although such estimates and assumptions are based on management's most recent assessment of the underlying facts and circumstances utilizing the most current information available and past experience, actual results could differ significantly from those estimates and assumptions. Our estimates, judgments, and assumptions are evaluated periodically and adjusted accordingly. Please refer to Note 2 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K for a discussion of the significant estimates and assumptions affecting our consolidated financial statements.

Fair Value and Fair Value Measurements

Certain amounts included in the accompanying consolidated financial statements are presented at "fair value". Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the date fair value is determined (the "measurement date"). When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider only those assumptions we believe a typical market participant would consider when pricing an asset or liability. In measuring fair value, we use the following inputs in the order of priority indicated:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices in active markets included in Level 1, such as (i) quoted prices for similar assets or liabilities; (ii) quoted prices in markets that have insufficient volume or infrequent transactions (i.e., less active markets); and (iii) model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data for substantially the full term of the asset or liability.

Page 8

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

(continued)

Level 3 - Unobservable inputs to the valuation methodology that are significant to the fair value measurement.

Please refer to Note 2 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K for a more complete discussion of the various amounts within the consolidated financial statements measured at fair value and the methods used to determine fair value.

New Accounting Standards

From time to time, the Financial Accounting Standards Board ("FASB") issues accounting standards updates (each being an "ASU") to its Accounting Standards Codification ("ASC"), which constitutes the primary source of U.S. GAAP. The Company regularly monitors ASUs as they are issued and considers their applicability to its business. All ASUs applicable to the Company are adopted by the due date and in the manner prescribed by the FASB.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU requires entities to recognize the amount of revenue to which they expect to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016. Early application is not permitted. We are evaluating the effect that this standard will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method.

Business Combinations

On December 13, 2013, the Company acquired all of the outstanding interests in Sinclair Knight Merz Management Pty Limited and Sinclair Knight Merz Holdings Limited (collectively, "SKM"), a provider of engineering, design, procurement, construction and project management services, from the SKM shareholders. The Company purchased SKM for approximately $1.2 billion in cash. The acquisition agreement includes customary representations, warranties, and indemnities supported by an escrow account. SKM's results of operations have been included in the Company's consolidated results of operations since the date of acquisition.

The Company has, in total, incurred approximately $16.6 million of expenses directly related to the SKM acquisition. Included in selling, general and administrative expense for the three and nine month periods ended June 27, 2014 are $0.2 million and $9.2 million, respectively, of transaction-related expenses.

The following table presents the preliminary allocation of the purchase price (in thousands) paid for SKM:

Assets:
Cash and cash equivalents	$	152,051
Receivables and other current assets	340,906
Property and equipment, and other	89,524
Intangible assets	246,696
Total assets	829,177
Liabilities:
Current liabilities	330,435
Deferred tax liability	86,344
Long-term liabilities	21,616
Total liabilities	438,395
Net identifiable assets acquired	$	390,782
Goodwill	828,892
Net assets acquired	$	1,219,674

The Company expects to collect substantially all of the acquired receivables of $304.6 million, net of acquired allowances.

Page 9

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

(continued)

The purchase price allocation of the SKM transaction continues to be subject to post-closing adjustment as the Company finalizes the values assigned to project-related assets and liabilities, claims, other contingencies, acquired intangible assets, and leased properties, among other items. The Company intends to complete the purchase price allocation by the end of the measurement period provided by U.S. GAAP. The preliminary useful lives of the intangible assets acquired from SKM range from 3 to 12 years.

Some of the factors contributing to the recognition of goodwill include: (i) access to a large, highly-trained and stable workforce; (ii) the opportunity to expand our client base in Australia, Asia, South America and the U.K.; (iii) the opportunity to expand our presence in multiple industries, including: mining, infrastructure, buildings, water and energy; and (iv) the opportunity to achieve operating synergies.

We expect that the goodwill recognized in this transaction will ultimately be deductible in the U.S. for federal income tax purposes.

The following table presents the unaudited, pro forma consolidated results of operations (in millions, except per share amounts) for the nine month periods ended June 27, 2014 and June 28, 2013 as if the acquisition of SKM operations had occurred as of September 29, 2012. The period end dates of SKM are different from those of the Company and, accordingly, certain adjustments were made to conform SKM's period end dates to those of the Company. Management believes these adjustments make the comparative data more representative of what the combined results of operations would have been over the pro forma period. The pro forma results are not necessarily indicative of (i) the results of operations that would have occurred had we actually acquired SKM on September 29, 2012; or (ii) future results of operations:

	For the Nine Months Ended
	June 27, 2014		June 28, 2013
Revenues	$	9,727	$	9,765
Net earnings attributable to Jacobs	249		369
Basic earnings per share	1.91		2.86
Diluted earnings per share	1.88		2.83

The pro forma earnings for the nine months ended June 27, 2014 were adjusted to exclude $21.4 million of transaction-related costs incurred by both parties and, for the nine months ended June 28, 2013, include $22.8 million of transaction-related costs (the difference being due to the effects of exchange rate changes) in the pro forma earnings. For the nine months ended June 27, 2014 and June 28, 2013, the pro forma earnings were adjusted to reduce interest expense by $0.8 million (for a total of $2.7 million) and to include incremental interest expense by $3.2 million (for a total of $4.3 million), respectively. For the nine months ended June 27, 2014 and June 28, 2013, the pro forma earnings were adjusted to include net incremental intangible amortization of $3.5 million (for a total of $17.8 million) and $15.5 million (for a total of $19.5 million), respectively. The difference in the total intangible amortization between the periods is due to the effects of exchange rate changes.

The pro forma earnings for the nine months ended June 27, 2014 include an expense from SKM of $24.0 million related to a settlement with certain SKM shareholders regarding provisions of their shareholding plan that was settled and paid prior to the close of the business combination and recorded during the three month period ended December 27, 2013.

During the nine months ended June 27, 2014, the Company also acquired Eagleton Engineering, LLC, FMHC Corporation, Stobbarts (Nuclear) Limited, Trompeter Enterprises, and MARMAC Field Services, Inc. The operations of these acquisitions were not material to the Company's consolidated results for the three and nine months ended June 27, 2014. During the three months ended June 27, 2014, we acquired an additional 15% interest in Zamel and Turbag Consulting Engineers Company ("ZATE"), a refining, chemicals, infrastructure and civil engineering company headquartered in Al Khobar, Saudi Arabia. This transaction brought the Company's ownership in ZATE to 75%. The Company also made an investment in Guimar Engenharia Ltda, a Brazilian-based engineering-based services and project management/construction management firm.

Page 10

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

(continued)

Receivables

The following table presents the components of "Receivables" appearing in the accompanying Consolidated Balance Sheets at June 27, 2014 and September 27, 2013 as well as certain other related information (in thousands):

	June 27, 2014		September 27, 2013
Components of receivables:
Amounts billed	$	1,350,511	$	1,389,278
Unbilled receivables and other	1,317,215		1,109,931
Retentions receivable	68,284		49,781
Total receivables, net	$	2,736,010	$	2,548,990
Other information about receivables:
Amounts due from the United States federal government,     included above, net of advanced billings	$	255,267	$	292,698
Claims receivable	$	72,249	$	25,237

Billed receivables consist of amounts invoiced to clients in accordance with the terms of our client contracts and are shown net of an allowance for doubtful accounts. We anticipate that substantially all of such billed amounts will be collected over the next twelve months.

Unbilled receivables and retentions receivable represent reimbursable costs and amounts earned and reimbursable under contracts in progress as of the respective balance sheet dates. Such amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months.

Claims receivable are included in "Receivables" in the accompanying Consolidated Balance Sheets and represent certain costs incurred on contracts to the extent it is probable that such claims will result in additional contract revenue and the amount of such additional revenue can be reliably estimated.

Property, Equipment and Improvements, Net

Property, Equipment and Improvements, Net in the accompanying Consolidated Balance Sheets at June 27, 2014 and September 27, 2013 consisted of the following (in thousands):

	June 27, 2014			September 27, 2013
Land	$	21,872		$	22,027
Buildings	132,902			131,690
Equipment	667,052			537,835
Leasehold improvements	298,840			204,940
Construction in progress	12,770			22,678
	1,133,436			919,170
Accumulated depreciation and amortization	(677,810		)	(539,874		)
	$	455,626		$	379,296

Long-term Debt

On February 7, 2014, Jacobs and certain of its subsidiaries entered into a $1.6 billion long-term unsecured, revolving credit facility (the "2014 Facility") with a syndicate of large, U.S. and international banks and financial institutions. The 2014 Facility replaced and refinanced the Company's previous $1.21 billion unsecured revolving credit facility originally entered into

Page 11

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

(continued)

by the Company on March 29, 2012 (the "2012 Facility"). All commitments under the 2012 Facility were terminated effective as of the closing date and all amounts due thereunder were refinanced under the 2014 Facility. The 2014 Facility also provides an accordion feature that allows the Company and the lenders to increase the facility amount to $2.1 billion. The 2014 Facility did not change interest rates for borrowings outstanding under the 2012 Facility, but did reduce the fees on the unused portion of the facility.

The total amount outstanding under the 2014 Facility in the form of direct borrowings at June 27, 2014 was $0.8 billion. The Company has issued $10.5 million in letters of credit leaving $0.8 billion of available borrowing capacity under the 2014 Facility at June 27, 2014. In addition, the Company had $342.4 million issued under separate, committed and uncommitted letter-of-credit facilities for total issued letters of credit of $352.9 million at June 27, 2014.

The 2014 Facility expires inFebruary 2019and permits the Company to borrow undertwoseparate tranches in U.S. dollars, certain specified foreign currencies, and any other currency that may be approved in accordance with the terms of the 2014 Facility. Depending on the Company's Consolidated Leverage Ratio, borrowings under the 2014 Facility will bear interest at either a eurocurrency rate plus a margin of between1.000%and1.500%or a base rate plus a margin of between0%and0.5%. The 2014 Facility also provides for a financial letter of credit subfacility of $300.0 million, permits performance letters of credit, and provides for a $50.0 million subfacility for swingline loans. Letters of credit are subject to fees based on the Company's Consolidated Leverage Ratio at the time any such letter of credit is issued. The Company pays a facility fee of between 0.100% and 0.250% per annum depending on the Company's Consolidated Leverage Ratio. Amounts outstanding under the 2014 Facility may be prepaid at the option of the Company without premium or penalty, subject to customary breakage fees in connection with the prepayment of eurocurrency loans. The 2014 Facility contains affirmative, negative, and financial covenants customary for financings of this type including, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales and transactions with affiliates. Inaddition, the 2014 Facility contains customary events of default. We were in compliance with our debt covenants atJune 27, 2014.

Revenue Accounting for Contracts / Accounting for Joint Ventures

In general, we recognize revenue at the time we provide services. Depending on the commercial terms of the contract, we recognize revenues either when costs are incurred, or using the percentage-of-completion method of accounting by relating contract costs incurred to date to the total estimated costs at completion. Contract losses are provided for in their entirety in the period they become known, without regard to the percentage-of-completion. For multiple contracts with a single customer we account for each contract separately. We also recognize as revenues, costs associated with claims and unapproved change orders to the extent it is probable that such claims and change orders will result in additional contract revenue, and the amount of such additional revenue can be reliably estimated. A significant portion of the Company's revenue is earned on cost reimbursable contracts. The percentage of revenues realized by the Company by type of contract during fiscal 2013 can be found in Note 1 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K.

Certain cost-reimbursable contracts include incentive-fee arrangements. The incentive fees in such contracts can be based on a variety of factors but the most common are the achievement of target completion dates, target costs, and/or other performance criteria. Failure to meet these targets can result in unrealized incentive fees. We recognize incentive fees based on expected results using the percentage-of-completion method of accounting. As the contract progresses and more information becomes available, the estimate of the anticipated incentive fee that will be earned is revised as necessary. We bill incentive fees based on the terms and conditions of the individual contracts. In certain situations, we are allowed to bill a portion of the incentive fees over the performance period of the contract. In other situations, we are allowed to bill incentive fees only after the target criterion has been achieved. Incentive fees which have been recognized but not billed are included in Receivables in the accompanying Consolidated Balance Sheets.

Certain cost-reimbursable contracts with government customers as well as certain commercial clients provide that contract costs are subject to audit and adjustment. In this situation, revenues are recorded at the time services are performed based upon the amounts we expect to realize upon completion of the contracts. Revenues are not recognized for non-recoverable costs. In those situations where an audit indicates that we may have billed a client for costs not allowable under the terms of the contract, we estimate the amount of such nonbillable costs and adjust our revenues accordingly.

When we are directly responsible for subcontractor labor or third-party materials and equipment, we reflect the costs of such items in both revenues and costs. On those projects where the client elects to pay for such items directly and we have no associated responsibility for such items, these amounts are not reflected in either revenues or costs.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

(continued)

The following table sets forth pass-through costs included in revenues for each of the three and nine months ended June 27, 2014 and June 28, 2013 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
Pass-through costs included in revenues	$	700,294	$	674,715	$	2,152,875	$	1,794,748

As is common to the industry, we execute certain contracts jointly with third parties through various forms of joint ventures and consortiums. Although the joint ventures own and hold the contracts with the clients, the services required by the contracts are typically performed by us and our joint venture partners, or by other subcontractors under subcontracting agreements with the joint ventures. The assets of our joint ventures, therefore, consist almost entirely of cash and receivables (representing amounts due from clients), and the liabilities of our joint ventures consist almost entirely of amounts due to the joint venture partners (for services provided by the partners to the joint ventures under their individual subcontracts) and other subcontractors. In general, at any given time, the equity of our joint ventures represents the undistributed profits earned on contracts the joint ventures hold with clients. Very few of our joint ventures have employees. None of our joint ventures have third-party debt or credit facilities. Our joint ventures, therefore, are simply mechanisms used to deliver engineering and construction services to clients. Rarely do they, in and of themselves, present any risk of loss to us or to our partners separate from those that we would carry if we were performing the contract on our own. Under U.S. GAAP, our share of losses associated with the contracts held by the joint ventures, if and when they occur, has always been reflected in our Consolidated Financial Statements.

Certain of our joint ventures meet the definition of a "variable interest entity" ("VIE"). As defined in U.S. GAAP, a VIE is a legal entity in which equity investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack any one of the following three characteristics: (i) the power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impact the entity's economic performance; (ii) the obligation to absorb the expected losses of the legal entity; or (iii) the right to receive the expected residual returns of the legal entity. Accordingly, entities issuing consolidated financial statements (i.e., a "reporting entity") shall consolidate a VIE if the reporting entity has a "controlling financial interest" in the VIE, as demonstrated by the reporting entity having both (i) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance; and (ii) the right to receive benefits from the VIE that could potentially be significant to the VIE or the obligation to absorb losses of the VIE that could potentially be significant to the VIE.

In evaluating our VIEs for possible consolidation, we perform a qualitative analysis to determine whether or not we have a "controlling financial interest" in the VIE as defined by U.S. GAAP. We consolidate only those VIEs over which we have a controlling financial interest. For the Company’s unconsolidated joint ventures, we use the equity method of accounting. The Company does not currently participate in any significant VIEs in which it has a controlling financial interest.

Disclosures About Defined Pension Benefit Obligations

The following table presents the components of net periodic benefit cost recognized in earnings during each of the three and nine months ended June 27, 2014 and June 28, 2013 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
Component:	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Service cost	$	10,529		$	10,876		$	31,401		$	32,895
Interest cost	20,270			17,242			60,221			52,331
Expected return on plan assets	(22,712		)	(19,917		)	(67,552		)	(60,374		)
Amortization of previously unrecognized items	4,941			5,223			14,617			15,849
Settlement Loss	142			197			422			598
Net periodic benefit cost	$	13,170		$	13,621		$	39,109		$	41,299

Included in the above table are amounts relating to a U.S. pension plan, the participating employees of which are assigned to, and work exclusively on, a specific operating contract with the U.S. federal government. It is the expectation of the parties

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

(continued)

to this contract that the cost of this pension plan will be fully reimbursed by the U.S. federal government pursuant to applicable cost accounting standards. The underfunded amount for this pension plan is included in "Other Noncurrent Assets" in the accompanying Consolidated Balance Sheets at June 27, 2014. Net periodic pension costs for this pension plan for the three and nine months ended June 27, 2014 were $1.9 million and $5.8 million, respectively, and for the three and nine months ended June 28, 2013 were $3.5 million and $10.5 million, respectively. Amounts related to the amortization of previously unrecognized items for this pension plan for the three and nine months ended June 27, 2014 were approximately zero and $0.1 million, respectively, and for the three and nine months ended June 28, 2013 were $0.9 million and $2.7 million, respectively.

The following table presents certain information regarding Company cash contributions to our pension plans for fiscal 2014 (in thousands):

Cash contributions made during the first nine months of fiscal 2014	$	49,354
Cash contributions we expect to make during the remainder of fiscal 2014	9,728
Total	$	59,082

Other Comprehensive Income

The following table presents amounts reclassified from change in pension liabilities in other comprehensive income to direct cost of contracts and selling, general and administrative expenses in the Company's Consolidated Statements of Earnings for the three and nine months ended June 27, 2014 and June 28, 2013 related to the Company's defined benefit pension plans (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Amortization of Defined Benefit Items:
Actuarial losses	$	(4,939	)	$	(4,321	)	$(14,613)			$(13,147)
Prior service cost	(28		)	10			(81		)	34
Total Before Income Tax	(4,967		)	(4,311		)	(14,694		)	(13,113		)
Income Tax Benefit	1,403			1,237			4,152			3,761
Total Reclassifications, After-tax	$	(3,564	)	$	(3,074	)	$	(10,542	)	$	(9,352	)

Earnings Per Share and Certain Related Information

The following table (i) reconciles the denominator used to compute basic earnings per share ("EPS") to the denominator used to compute diluted EPS for the three and nine months ended June 27, 2014 and June 28, 2013; (ii) provides information regarding the number of non-qualified stock options and shares of restricted stock that were antidilutive and therefore disregarded in calculating the weighted average number of shares outstanding used in computing diluted EPS; and (iii) provides the number of shares of common stock issued from the exercise of stock options and the release of restricted stock (in thousands):

	For the Three Months Ended		For the Nine Months Ended
	June 27, 2014	June 28, 2013	June 27, 2014	June 28, 2013
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)	130,738	129,536	130,417	129,094
Effect of stock options and restricted stock	1,873	1,759	2,043	1,496
Denominator used to compute diluted EPS	132,611	131,295	132,460	130,590
Antidilutive stock options and restricted stock	2,101	2,528	2,088	3,943
Shares of common stock issued from the exercise of stock options and the release of restricted stock	724	534	1,590	2,415

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 27, 2014

(continued)

Commitments and Contingencies

In the normal course of business, we are subject to certain contractual guarantees, claims and litigation. The guarantees to which we are a party generally relate to project schedules and plant performance. Most of the claims and litigation in which we are involved has us as a defendant in workers' compensation; personal injury; environmental; employment/labor; professional liability; and other similar matters.

We maintain insurance coverage for various aspects of our business and operations. Our insurance programs have varying coverage limits and maximums, and insurance companies may and increasingly do seek to not pay any claims we might make. We have also elected to retain a portion of losses that occur through the use of various deductibles, limits, and retentions under our insurance programs. As a result, we may be subject to future liability for which we are only partially insured or completely uninsured. We intend to mitigate any such future liability by continuing to exercise prudent business judgment in negotiating the terms and conditions of our contracts. Our insurers are also subject to business risk and, as a result, one or more of them may be unable to fulfill their insurance obligations due to insolvency or otherwise.

Additionally, as a contractor providing services to the U.S. federal government and several of its agencies, we are subject to many levels of audits, investigations, and claims by, or on behalf of, the U.S. federal government with respect to our contract performance, pricing, costs, cost allocations, and procurement practices. Furthermore, our income, franchise, and similar tax returns and filings are also subject to audit and investigation by the Internal Revenue Service, most states within the U.S. as well as by various government agencies representing jurisdictions outside the U.S.

We record in our Consolidated Balance Sheets amounts representing our estimated liability relating to such claims, guarantees, litigation, and audits and investigations. We perform an analysis to determine the level of reserves to establish for claims that may be insured that are known and have been asserted against us, and for claims that may be insured that are believed to have been incurred based on actuarial analysis, but have not yet been reported to our claims administrators as of the respective balance sheet dates. We include any adjustments to such insurance reserves in our consolidated results of operations.

Management believes, after consultation with counsel, that such guarantees, litigation, U.S. government contract-related audits, investigations and claims, and income tax audits and investigations should not have any material adverse effect on our consolidated financial statements.

On January 20, 2010, Clark County Nevada ("Clark County") filed suit against Jacobs and two of its subsidiaries asserting claims arising out of certain construction projects to which Clark County Nevada was the owner and for which Jacobs' subsidiaries served as the project management consultant. Clark County's lawsuit against Jacobs followed years of litigation and arbitration between Clark County and its construction contractor on the applicable projects which had ended unsuccessfully for Clark County and resulted in Clark County paying more than $60 million in settlement and awards. Jacobs denied liability and vigorously defended against the County's claims. Although Jacobs paid a cash settlement to Clark County in March 2014 to resolve the litigation, it pursued reimbursement of that payment from its insurers, and subsequently resolved coverage disputes with those insurers, subject to the execution of final agreements. As a result, the Company does not expect the settlement of this matter to have any material adverse effect on its consolidated financial statements.

The Company is a defendant in numerous matters pending in North Carolina's Superior Courts arising out of a June 9, 2009 natural gas explosion at a ConAgra Foods Inc. plant in Garner, Wake County, North Carolina. The claims that have been brought against the Company include wrongful death claims, personal injury claims and a claim for property losses to the plant property itself. The Company has settled all but one of the personal injury claims and is vigorously defending the remaining claim and believes it has meritorious defenses. In addition, the Company believes it has adequate insurance coverage as well as a right to indemnification from ConAgra, from whom the company is pursuing recovery. Accordingly, the Company does not expect the remaining matter to have any material adverse effect on its consolidated financial statements.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

General

The purpose of this Management’s Discussion and Analysis ("MD&A") is to provide a narrative analysis explaining the reasons for material changes in the Company’s (i) financial condition since the most recent fiscal year-end, and (ii) results of operations during the current fiscal period(s) as compared to the corresponding period(s) of the preceding fiscal year. In order to better understand such changes, readers of this MD&A should also read:

• The discussion of the critical and significant accounting policies used by the Company in preparing its consolidated financial statements. The most current discussion of our critical accounting policies appears in Management's Discussion and Analysis of Financial Condition and Results of Operations of our 2013 Form 10-K, and the most current discussion of our significant accounting policies appears in Note 2—Significant Accounting Polices in Notes to Consolidated Financial Statements of our 2013 Form 10-K;

• The Company’s fiscal 2013 audited consolidated financial statements and notes thereto included in our 2013 Form 10-K; and

• Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2013 Form 10-K.

In addition to historical information, this MD&A may contain forward-looking statements that are not based on historical fact. When used herein, words such as "expects", "anticipates", "believes", "seeks", "estimates", "plans", "intends", and similar words identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although such statements are based on management’s current estimates and expectations, and currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause our actual results to differ materially from what may be inferred from the forward-looking statements. Some of the factors that could cause or contribute to such differences are listed and discussed in Item 1A—Risk Factors, included in our 2013 Form 10-K. We undertake no obligation to release publicly any revisions or updates to any forward-looking statements. We encourage you to read carefully the risk factors described in other documents we file from time to time with the United States Securities and Exchange Commission.

Overview - the 2014 Restructuring

During the third quarter of fiscal 2014 ended June 27, 2014, the Company commenced a series of initiatives intended to improve operational efficiency, reduce costs, and better position the Company to drive growth of the business in the future. We are not exiting any geographic markets or service types, nor exiting any client end-markets. Actions completed during the third quarter of fiscal 2014 included involuntary terminations, the abandonment of certain leased offices, and the co-location of employees into larger offices. Included in the Company's consolidated results of operations for the third quarter of fiscal 2014 are pre-tax costs of $70.8 million relating to the 2014 restructuring effort (the "2014 Restructuring"). The costs of the 2014 Restructuring is included are selling, general, and administrative expense in the accompanying Consolidated Statements of Earnings net of a $14.2 million reduction in bonus plan expense. The following table summarizes the effects of the 2014 Restructuring on the Company's consolidated results of operations for the three month and nine month periods ended June 27, 2014 (in thousands, except for earnings per share):

	Three Months Ended									Nine Months Ended
	June 27, 2014									June 27, 2014
	Without 2014 Restructuring			Effects of 2014 Restructuring			U.S. GAAP			Without 2014 Restructuring			Effects of 2014 Restructuring			U.S. GAAP
Consolidated pre-tax earnings (loss)	$	174,700		$	(56,654	)	$	118,046		$	454,016		$	(56,654	)	$	397,362
Tax (expense) benefit	(56,439		)	9,702			(46,737		)	(146,006		)	9,702			(136,304		)
Net earnings of the Group	118,261			(46,952		)	71,309			308,010			(46,952		)	261,058
Non-controlling interests	(6,467		)	—			(6,467		)	(19,024		)	—			(19,024		)
Net earnings of Jacobs	$	111,794		$	(46,952	)	$	64,842		$	288,986		$	(46,952	)	$	242,034
Diluted earnings (loss) per share	$	0.84		$	(0.35	)	$	0.49		$	2.18		$	(0.35	)	$	1.83

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

The Company expects to complete the 2014 Restructuring during the fourth quarter of fiscal 2014 at an estimated additional pre-tax cost of between $45.0 million and $50.0 million.

Overview - the Acquisition of Sinclair Knight Merz

On December 13, 2013, the Company acquired all of the outstanding equity interests in Sinclair Knight Merz Management Pty Limited and Sinclair Knight Merz Holdings Limited (collectively, "SKM"), a provider of engineering, design, procurement, construction and project management services for approximately $1.2 billion in cash. SKM's results of operations have been included in the Company's consolidated results of operations since the date of acquisition. The following table presents SKM's results of operations included in the Company's consolidated results of operations for the periods presented (in thousands, except per share amounts):

	Three Months Ended		Nine Months Ended
	June 27, 2014		June 27, 2014
Revenues	$	241,763	$	524,830
Net earnings attributable to Jacobs:
Before 2014 Restructuring	$	14,378	$	11,899
After 2014 Restructuring	$	7,319	$	4,840
Basic and Diluted EPS:
Before 2014 Restructuring	$	0.11	$	0.09
After 2014 Restructuring	$	0.06	$	0.04

Additional information related to the acquisition can be found in the Note Business Combinations in Notes to Consolidated Financial Statements.    

Overview - Nine Months Ended June 27, 2014

In addition to the effects of the 2014 Restructuring and the acquisition of SKM, the Company's consolidated results of operations for the nine months ended June 27, 2014 were affected by the successful resolution of an international tax matter that occurred during the first quarter of fiscal 2014 (the tax effect was $2.7 million and the Company reversed $4.1 million of accrued interest).

Also affecting the Company's consolidated results of operations for the nine months ended June 27, 2014 were certain transactions and events that occurred during the second quarter of fiscal 2014. These include (i) a $6.5 million gain on the sale of certain intellectual property; and (ii) the negative effects on operations relating to several projects performed in Europe, holidays, and weather.

Within this MD&A, the Company may disclose and discuss its results of operations before the effects of the 2014 Restructuring or the other transactions and events described above. Although such information is non-GAAP in nature, it is presented because management believes it provides a better view of the Company’s operating results to investors to assess the Company’s performance and operating trends.

Backlog at June 27, 2014 was $18.5 billion, an increase of 7.5% over backlog at June 28, 2013. The Company continues to have a positive outlook of many of the industry groups and markets in which our clients operate.

Results of Operations

Net earnings for the third quarter of fiscal 2014 ended June 27, 2014decreased$44.0 million, or 40.4%, to $64.8 million (or $0.49 per diluted share) from $108.9 million (or $0.83 per diluted share) for the corresponding period last year. For the nine months ended June 27, 2014, net earnings decreased$70.2 million, or 22.5%, to $242.0 million (or $1.83 per diluted share), from $312.3 million (or $2.39 per diluted share) for the corresponding period last year. Excluding the effects of the 2014 Restructuring, net earnings and diluted earnings per share for the three months ended June 27, 2014 were $111.8 million and $0.84, respectively, and for the nine months ended June 27, 2014, net earnings and diluted earnings per share were $289.0 million and $2.18, respectively.

Total revenues for the third quarter of fiscal 2014increased by $150.8 million, or 4.9%, to $3.23 billion, from $3.08 billion for the third quarter of fiscal 2013. For the nine months ended June 27, 2014, total revenues increased by $801.0 million, or

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

9.2%, to $9.5 billion, from $8.7 billion for the corresponding period last year. In general, the increases in revenues for both the third quarter and first nine months of fiscal 2014 as compared to the corresponding periods last year were due primarily to revenues attributable to SKM. However, and in particular as it relates to the nine months ended June 27, 2014, the Company experienced increased revenues from clients operating in a number of legacy industry groups and markets, including Chemicals and Polymers, Infrastructure, Mining and Minerals, and Buildings.

The following table sets forth our revenues by the various types of services we provide for the three and nine months ended June 27, 2014 and June 28, 2013, respectively (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
Technical Professional Services Revenues:
Project Services	$	1,729,093	$	1,542,929	$	4,960,235	$	4,485,570
Process, Scientific, and Systems Consulting	164,002		177,057		477,358		540,464
Total Technical Professional Services Revenues	1,893,095		1,719,986		5,437,593		5,026,034
Field Services Revenues:
Construction	1,045,473		1,055,133		3,119,201		2,710,098
Operations and Maintenance ("O&M")	293,223		305,876		919,921		939,588
Total Field Services Revenues	1,338,696		1,361,009		4,039,122		3,649,686
Total Revenues	$	3,231,791	$	3,080,995	$	9,476,715	$	8,675,720

Project Services revenues for the three months ended June 27, 2014increased$186.2 million, or 12.1%, from the corresponding period last year. Project Services revenues for the nine months ended June 27, 2014increased$474.7 million, or 10.6%, from the corresponding period last year. These increases in Project Services revenues were due primarily to revenues attributable to SKM. Also contributing to the increases were higher levels of activity in several of industry groups and markets we serve, including Buildings, Chemicals and Polymers, and Refining-Downstream.

Process, Scientific, and Systems Consulting ("PS&SC") revenues for the three months ended June 27, 2014decreased$13.1 million, or 7.4%, from the corresponding period last year. PS&SC revenues for the nine months ended June 27, 2014decreased$63.1 million, or 11.7%, from the corresponding period last year. The revenues in this service type relate to science, engineering, and technical support services provided primarily to our U.S. federal government clients and its various agencies. Accordingly, revenues for this service category were negatively affected by the general reduction in U.S. federal government spending during fiscal 2014 and, in particular, to the impacts resulting from the temporary shutdown of the U.S. federal government in the first quarter of fiscal 2014.

Construction revenues for the nine months ended June 27, 2014increased$409.1 million, or 15.1%, from the corresponding period last year, primarily in the Chemicals and Polymers market and the Mining and Minerals market in the U.S.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

The following table sets forth our revenues by the industry groups and markets in which our clients operate for the three and nine months ended June 27, 2014 and June 28, 2013 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
National Government Programs	$	538,296	$	553,441	$	1,617,269	$	1,681,797
Refining - Downstream	560,022		584,793		1,705,625		1,646,400
Chemicals and Polymers	773,153		715,796		2,202,097		1,812,508
Infrastructure	352,422		244,506		1,000,189		801,825
Oil & Gas - Upstream	280,560		261,116		683,025		681,815
Buildings	215,965		190,807		617,129		563,195
Pharmaceuticals and Biotechnology	88,453		124,756		339,880		401,704
Mining and Minerals	264,771		158,729		752,870		438,020
Industrial and Other	158,149		247,051		558,631		648,456
	$	3,231,791	$	3,080,995	$	9,476,715	$	8,675,720

For the nine months ended June 27, 2014, revenues from projects for clients operating in the Chemicals and Polymers industries increased$389.6 million, or 21.5%, to $2.2 billion from $1.8 billion for the corresponding period last year. This increase occurred throughout many of the geographic locations in which we operate. We continue to receive new awards for FEED (front-end engineering design) and pre-FEED services. We have long-term relationships with numerous chemical companies around the world, and we believe this industry group will provide strong growth opportunities long-term. We see particularly strong growth potential in North America and the Middle East due to the growing source of available feedstock. Leveraging our geographic presence as strengthened by the SKM transaction, we were recently awarded a significant professional services contract for what will be the largest chlorine dioxide plant in the world, located in Asia.

For the three months ended June 27, 2014, revenues from clients operating in the Infrastructure market increased$107.9 million, or 44.1%, to $352.4 million from $244.5 million for the corresponding period last year. SKM contributed approximately 50.0% of the increase. We see improved conditions in several of the sub-markets within this industry group, particularly for transportation and water projects. One example is the Asset Management Programme (AMP6) cycle in the U.K., where we believe the Company is well positioned to assist clients improve their relative efficiency and wastewater effluent quality. Also included in this revenue category is our growing services to customers operating in the telecommunications industry. Long-term, we see this market as attracting significant capital as countries around the world strive to improve and expand their wireless communications capabilities.

For the three months ended June 27, 2014, revenues from clients operating in the Buildings market increased$25.2 million, or 13.2%, to $216.0 million from $190.8 million for the corresponding period last year. For the nine months ended June 27, 2014, revenues from clients operating within this market increased$53.9 million, or 9.6%, to $617.1 million from $563.2 million for the corresponding period last year. Although SKM was responsible for most of this increase, the Company saw good growth in our Middle East, Asia, and U.K. markets. We also see growth potential in parts of North and West Africa where we believe we are well portioned to capitalize on buildings projects with high technical content (e.g., health care, aviation, and education). We view the Buildings market as improving as our business continues to shift towards projects for clients in the private sector.

For the three months ended June 27, 2014, revenues from clients operating in the Mining and Minerals market increased$106.0 million, or 66.8%, to $264.8 million from $158.7 million for the corresponding period last year. For the nine months ended June 27, 2014, revenues increased$314.9 million, or 71.9%, to $752.9 million from $438.0 million for the corresponding period last year. The increased revenues in 2014 were due primarily to SKM, combined with increased business activity within the Americas. Globally, our clients in these industries continue to behave conservatively when it comes to new spend. In addition, although we believe consolidation among companies in this industry will provide more stable capital spending in the long-term, such actions may have significant impacts in the short-term. Nevertheless, we believe we will be able to capture additional market share from clients operating in these industries by continuing to focus on asset optimization and sustaining capital projects (small-cap projects and maintenance-driven work) for our clients. In addition, we expect the SKM acquisition to expand our capabilities beyond non-ferrous metals to iron ore and coal and to bring together our existing hydro-metallurgy and concentrator skills with SKM's strength in materials handling and infrastructure.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

For the three months ended June 27, 2014, revenues from clients operating in the Pharmaceuticals and Biotechnology industries decreased $36.3 million, or 29.1%, to $88.5 million from $124.8 million for the corresponding period last year. For the nine months ended June 27, 2014, revenues from clients operating within these industries decreased $61.8 million, or 15.4%, to $339.9 million from $401.7 million for the corresponding period last year. The decreases in revenues in fiscal 2014 as compared to last year were due primarily to the normal wind-down and completion of projects, including work on several vaccine plants located in North America. We continue to view these industries as improving with prospects in the area of biotechnology-based drug development, principally in North America, and secondary manufacturing expansion, primarily in India and Asia.

For the three months ended June 27, 2014, revenues from clients operating in the Industrial and Other industry group decreased$88.9 million, or 36.0%, to $158.1 million from $247.1 million for the corresponding period last year. For the nine months ended June 27, 2014, revenues decreased$89.8 million, or 13.9%, to $558.6 million from $648.5 million for the corresponding period last year. The Industrial and Other industry group consists of projects performed for clients operating in a number of instries including pulp and paper; high-technology manufacturing; power; food and beverage; and consumer products, among others. The decreases in revenues in fiscal 2014 as compared to last year were due primarily to the normal wind-down and completion of numerous projects.

Direct costs of contracts for the third quarter of fiscal 2014increased$0.1 billion, or 2.1%, to $2.7 billion from $2.6 billion for the corresponding period last year. Direct costs of contracts for the nine months ended June 27, 2014increased$0.6 billion, or 8.7%, to $7.9 billion from $7.3 billion for the corresponding period last year. Direct costs of contracts include all costs incurred in connection with and directly for the benefit of client contracts, including depreciation and amortization relating to assets used in providing the services required by the related projects. The level of direct costs of contracts may fluctuate between reporting periods due to a variety of factors, including the amount of pass-through costs we incur during a period. On those projects where we are responsible for subcontract labor or third-party materials and equipment, we reflect the amounts of such items in both revenues and costs (and we refer to such costs as "pass-through costs"). On other projects where the client elects to pay for such items directly and we have no associated responsibility for such items, these amounts are not considered pass-through costs and are, therefore, not reflected in either revenues or costs. To the extent that we incur a significant amount of pass-through costs in a period, our direct costs of contracts are likely to increase as well.

Pass-through costs for the third quarter of fiscal 2014increased$25.6 million, or 3.8%, to $700.3 million from $674.7 million for the corresponding period last year. Pass-through costs for the nine months ended June 27, 2014increased$358.1 million, or 20.0%, to $2.15 billion from $1.79 billion for the corresponding period last year. In general, pass-through costs are more significant on projects that have a higher content of field services activities. Pass-through costs are generally incurred at specific points during the life cycle of a project and are highly dependent on the needs of our individual clients and the nature of the clients’ projects. However, because we have hundreds of projects which start at various times within a fiscal year, the effect of pass-through costs on the level of direct costs of contracts can vary between fiscal years without there being a fundamental or significant change to the underlying business.

As a percentage of revenues, direct costs of contracts for the three and nine months ended June 27, 2014 was 82.6% and 83.8%, respectively. This compares to 84.8% and 84.2% for the three and nine months ended June 28, 2013, respectively. The relationship between direct costs of contracts and revenues will fluctuate between reporting periods depending on a variety of factors including the mix of business during the reporting periods being compared as well as the level of margins earned from the various types of services provided. Generally, the more procurement we do on behalf of our clients (i.e., where we purchase equipment and materials for use on projects and/or procure subcontracts in connection with projects) and the more field services revenues we have relative to technical, professional services revenues, the higher the ratio will be of direct costs of contracts to revenues. Because revenues from pass-through costs typically have lower margin rates associated with them, it is not unusual for us to experience an increase or decrease in such revenues without experiencing a corresponding increase or decrease in our gross margins and operating profit. For the three and nine months ended June 27, 2014, the ratio of direct costs of contracts to revenues over the prior year periods decreased, primarily as a result of higher margins in both professional technical services and field services activities and the acquisition of SKM.

Selling, general and administrative ("SG&A") expenses for the third quarter of fiscal 2014increased$139.2 million, or 46.6%, to $437.8 million from $298.6 million for the corresponding period last year. For the nine months ended June 27, 2014, SG&A expenses increased$266.8 million, or 30.5%, to $1,140.6 million from $873.8 million for the corresponding period last year. SG&A expenses for both the three and nine month periods of fiscal 2014 include the effects of the 2014 Restructuring discussed above as well as the results of operations of SKM. Also included in SG&A expenses for the current fiscal year are transaction-related expenses incurred in connection with the SKM acquisition of $9.2 million. Also included in SG&A expenses for fiscal 2014 are due diligence and other transaction-related costs incurred in connection with mergers and acquisition activity.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

Net interest expense for the three and nine months ended June 27, 2014 was $2.9 million and $3.1 million, respectively, as compared to $1.5 million and $6.0 million, respectively for the corresponding periods last year. The increase for the three month period is due to higher interest expense related to the debt incurred to acquire SKM partially offset by higher interest income earned from SKM. For the nine month period, the decrease is related to the successful resolution in the first quarter of fiscal 2014 of a tax matter involving one of our international subsidiaries which resulted in the reversal of $4.1 million of accrued interest partially offset by the net SKM acquisition impacts.

The Company's effective income tax rate for the third quarter ended June 27, 2014increased to 39.6% from 33.4% for the corresponding period last year. For the nine months ended June 27, 2014, the Company's effective income tax rate increased to 34.3% from 33.5% for the corresponding period last year. Contributing to the increases during both the three and nine month periods ended June 27, 2014 as compared to the prior year's periods were the effect of the 2014 Restructuring. Also contributing to the higher effective tax rate for the first nine months of fiscal 2014 is the stamp duty paid in the first quarter of fiscal 2014 related to the SKM acquisition, off-set by the successful resolution of an international tax matter that also occurred during the first quarter of fiscal 2014.

Backlog Information

We include in backlog the total dollar amount of revenues we expect to record in the future as a result of performing work under contracts that have been awarded to us. Our policy with respect to O&M contracts, however, is to include in backlog the amount of revenues we expect to receive for one succeeding year, regardless of the remaining life of the contract. For national government programs (other than national government O&M contracts), our policy is to include in backlog the full contract award, whether funded or unfunded, excluding option periods. Because of the nature, size, expected duration, funding commitments, and the scope of services required by our contracts, the timing of when backlog will be recognized as revenues can vary greatly between individual contracts.

Consistent with industry practice, substantially all of our contracts are subject to cancellation or termination at the option of the client. In a situation where a client terminates a contract, we typically are entitled to receive payment for work performed up to the date of termination, and in certain instances, we may be entitled to allowable termination and cancellation costs. While management uses all information available to it to determine backlog, our backlog at any given time is subject to changes in the scope of services to be provided as well as increases or decreases in costs relating to the contracts included therein.

Because certain contracts (for example, contracts relating to large engineering, procurement, and construction projects as well as national government programs) can cause large increases to backlog in the fiscal period in which we recognize the award, and because many of our contracts require us to provide services that span over a number of fiscal quarters (and sometimes over fiscal years), we evaluate our backlog on a year-over-year basis, rather than on a sequential, quarter-over-quarter basis.

The following table summarizes our backlog at June 27, 2014 and June 28, 2013 (in millions):

	June 27, 2014		June 28, 2013
Technical professional services	$	12,324.2	$	11,087.1
Field services	6,163.0		6,108.5
Total	$	18,487.2	$	17,195.6

Our backlog increased$1.3 billion, or 7.5%, to $18.5 billion at June 27, 2014 from $17.2 billion at June 28, 2013. Backlog at June 27, 2014 includes SKM and new awards from clients operating in many of the industry groups and markets we serve, in particular the Refining - Downstream, Infrastructure and Oil & Gas - Upstream markets.

Liquidity and Capital Resources

At June 27, 2014, our principal sources of liquidity consisted of $0.8 billion of cash and cash equivalents and $0.8 billion of available borrowing capacity under our $1.60 billion revolving credit facility (the "2014 Facility" - refer to the Note Long-term Debt in Notes to Consolidated Financial Statements). We finance much of our operations and growth through cash generated by our operations.

During the nine months ended June 27, 2014, our cash and cash equivalents decreased by $0.5 billion from $1.26 billion at September 27, 2013 to $0.8 billion at June 27, 2014. This compares to a net increase in cash and cash equivalents of $263.1 million to $1.30 billion during the corresponding period last year. During the nine months ended June 27, 2014, we experienced

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

net cash outflows of $1.3 billion from investing activities and $6.2 million from the effects of exchange rate changes. These cash outflows were offset in part by net cash inflows of $485.2 million from operating activities and $380.2 million from financing activities.

Our operations provided net cash inflows of $485.2 million during the nine months ended June 27, 2014. This compares to net cash inflows of $437.2 million for the corresponding period last year. The $48.0 millionincrease in cash flows from operating activities during the nine months ended June 27, 2014 as compared to the corresponding period last year was due primarily to a $119.0 millionincrease in cash generated from changes within our working capital accounts (discussed below)offset in part by a small decrease in net earnings.

Because such a high percentage of our revenues is earned on cost-plus type contracts, and due to the significance of revenues relating to pass-through costs, most of the costs we incur are included in invoices we send to clients. Although we continually monitor our accounts receivable, we manage the operating cash flows of the Company by managing the working capital accounts in total, rather than by the individual elements. The primary elements of the Company’s working capital accounts are accounts receivable, accounts payable, and billings in excess of cost. Accounts payable consist of obligations to third parties relating primarily to costs incurred for projects which are generally billable to clients. Accounts receivable consist of amounts due from our clients — a substantial portion of which is for project-related costs. Billings in excess of cost consist of billings to and payments from our clients for costs yet to be incurred.

This relationship between revenues and costs, and between receivables and payables, is unique to our industry, and facilitates review of our liquidity at the total working capital level. The $119.0 millionincrease in cash flows relating to our working capital accounts was due to the timing of cash receipts and payments within our working capital accounts, including an improvement in cash collections from customers, off-set in part by an increase in vendor payments. Although the Company provides services to clients in a number of countries outside the U.S., we believe our credit risk with respect to these international clients is not significant. Our private sector customers are comprised principally of large, well-known, and well-established multi-national companies. Our government customers are comprised of national, state, and local agencies located principally in the U.S., the U.K., and Australia. We have not historically experienced significant collection issues with either of our governmental or non-governmental customers.

We used$1.3 billion of cash and cash equivalents for investing activities during the nine months ended June 27, 2014 as compared to $105.9 millionused during the corresponding period last year. This increase was primarily the result of the Company's acquisition of SKM for $1.2 billion ($1.1 billion net of cash acquired) during the nine months ended June 27, 2014 and compares to minimal acquisition activity in the corresponding period last year.

Our financing activities resulted in net cash inflows of $380.2 million during the nine months ended June 27, 2014. This compares to net cash outflows of $51.2 million during the corresponding period last year. In connection with our acquisition of SKM, we borrowed $600.0 million under the 2012 Facility (refer to Long-term Debt in Notes to Consolidated Financial Statements; amounts borrowed to complete the SKM acquisition that were still outstanding on the date we closed the 2014 Facility were paid-off and re-borrowed under the 2014 Facility), of which we paid down $260.0 million by the end of the third fiscal quarter of 2014.

The Company had $0.8 billion of cash and cash equivalents at June 27, 2014. Of this amount, approximately $202.5 million was held in the U.S. and $570.1 million was held outside of the U.S., primarily in Canada, Australia, the U.K., and the Eurozone. Other than the tax cost of repatriating funds to the U.S. (see Note 9—IncomeTaxes of Notes to Consolidated Financial Statements included in our 2013 Form 10-K), there are no material impediments to repatriating these funds to the U.S.

We believe we have adequate liquidity and capital resources to fund our operations, support our acquisition strategy, and service our debt for the next twelve months. We had $0.8 billion in cash and cash equivalents at June 27, 2014, and our consolidated working capital position was $1.6 billion at that date. In addition, there was $0.8 billion of borrowing capacity remaining under the 2014 Facility at June 27, 2014. We believe that the capacity, terms and conditions of the 2014 Facility, combined with cash on-hand and the other committed and uncommitted facilities we have in place, are adequate for our working capital and general business requirements for the next twelve months.

The Company had $352.9 million of letters of credit outstanding at June 27, 2014. Of this amount, $10.5 million was issued under our revolving credit facility and $342.4 million was issued under separate, committed and uncommitted letter-of-credit facilities.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We do not enter into derivative financial instruments for trading, speculation or other purposes that would expose the Company to market risk. In the normal course of business, our results of operations are exposed to risks associated with fluctuations in interest rates and currency exchange rates.

Interest Rate Risk

Please see the Note Long-term Debt in Notes to Consolidated Financial Statements appearing under Part I - Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference, for a discussion of the 2014 Facility.

Foreign Currency Risk

In situations where our operations incur contract costs in currencies other than their functional currency, we attempt to have a portion of the related contract revenues denominated in the same currencies as the costs. In those situations where revenues and costs are transacted in different currencies, we sometimes enter into foreign exchange contracts in order to limit our exposure to fluctuating foreign currencies. We follow the provisions of ASC 815—Derivatives and Hedging in accounting for our derivative contracts. The Company does not currently have exchange rate sensitive instruments that would have a material effect on our consolidated financial statements or results of operations.

Item 4. Controls and Procedures.

The Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as defined by Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as of June 27, 2014, the end of the period covered by this Quarterly Report on Form 10-Q (the "Evaluation Date"). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the Evaluation Date.

There were no changes in the Company’s internal control over financial reporting during the quarter ended June 27, 2014 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

The information required by this Item 1 is included in the Note Commitments and Contingencies included in the Notes to Consolidated Financial Statements appearing under Part I - Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

Item 1A. Risk Factors.

Please refer to Item 1A—Risk Factors in our 2013 Form 10-K, which is incorporated herein by reference, for a discussion of some of the factors that have affected our business, financial condition, and results of operations in the past and which could affect us in the future. There have been no material changes to those risk factors during the period covered by this Quarterly Report on Form 10-Q.

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. Under the Mine Act, an independent contractor, such as Jacobs, that performs services or construction of a mine is included within the definition of a mining operator. We do not act as the owner of any mines.

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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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

Item 6. Exhibits

(a) Exhibits

10.1# –	Form of Restricted Stock Unit Award Agreement (Performance Shares - Net Earnings Growth).
10.2# –	Form of Restricted Stock Unit Award Agreement (Performance Shares - TSR).
31.1 –	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 –	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 –	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 –	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95 –	Mine Safety Disclosure.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
#	Management contract or compensatory plan or arrangement.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

JACOBS ENGINEERING GROUP INC.

By:	/s/ John W. Prosser, Jr.
	John W. Prosser, Jr.
	Executive Vice President
	Finance and Administration
	and Treasurer
	(Principal Financial Officer)
Date:	August 1, 2014

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EX-10.1

Exhibit 10.1

JACOBS ENGINEERING GROUP INC.RESTRICTED STOCK UNIT AGREEMENT

(Performance Shares - Net Earnings Growth)

This Agreement is executed as of this ____ day of __________ 20__ by and between JACOBS ENGINEERING GROUP INC. (the “Company”) and _________________ (“Employee”) pursuant to the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (the “Plan”). Unless the context clearly indicates otherwise, all terms defined in the Plan and used in this Agreement (whether or not capitalized) have the meanings as set forth in the Plan.

1.Restricted Stock Units

Pursuant to the Plan, and in consideration for services rendered to the Company or Related Company or for their benefit, the Company hereby issues, as of the above date (the “Award Date”) to Employee an award of restricted stock units in accordance with Paragraph 13 of the Plan and the terms and conditions of this Agreement (the “Award”). The target number of restricted stock units Employee is eligible to earn under this Agreement is ______________ (the “Target Net Earnings Growth Restricted Stock Units”). Each restricted stock unit represents the right to receive one share of Jacobs Common Stock (subject to adjustment pursuant to the Plan) in accordance with the terms and subject to the conditions (including the vesting conditions) set forth in this Agreement and the Plan.

2.Vesting, Distribution

(a) The Award shall not be vested as of the Award Date and shall be forfeitable by Employee without consideration or compensation unless and until otherwise vested pursuant to the terms of this Agreement.

(b) The number of restricted stock units earned under this Agreement shall be equal to the sum of the following (the “Earned Net Earnings Growth Restricted Stock Units”):

1. An amount, not less than zero, equal to one-third of the Target Net Earnings Growth Restricted Stock Units multiplied by the Net Earnings Growth Performance Multiplier (as defined herein) determined based upon the growth in the Company's Net Earnings (as defined herein) over the period starting on the first day of the Company's third quarter of fiscal 2014 and ending on the last day of the Company's second quarter of fiscal 2015; plus

2. An amount, not less than zero, equal to (A) two-thirds of the Target Net Earnings Growth Restricted Stock Units multiplied by the Net Earnings Growth Performance Multiplier determined based upon the average growth in the Company's Net Earnings over the period starting on the first day of the Company's third quarter of fiscal 2014 and ending on the last day of the Company's second quarter of fiscal 2016, minus (B) the amount determined pursuant to paragraph 2(d)(1) above; plus

3. An amount, not less than zero, equal to (A) the Target Net Earnings Growth Restricted Stock Units multiplied by the Net Earnings Growth

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Performance Multiplier determined based upon the average growth in the Company's Net Earnings over the period starting on the first day of the Company's third quarter of fiscal 2014 and ending on the last day of the Company's second quarter of fiscal 2017, minus (B) the amount determined pursuant to paragraphs 2(d)(1) and 2(d)(2) above.

The Net Earnings Growth Performance Multiplier for purposes of the above calculations will be determined by reference to the following table based upon the average growth in the Company's Net Earnings over the relevant fiscal periods:

Average Net Earnings Growth	Net Earnings Growth Performance Multiplier
Less than 5%	0
5%	50%
10%	100%
15%	150%
20% or greater	200%

If the Company's average growth in Net Earnings over the applicable fiscal periods is between 5% and 10%, 10% and 15%, or 15% and 20%, the Net Earnings Growth Performance Multiplier will be determined using straight line interpolation based on the actual average growth in Net Earnings.

For purposes of this Section 2(b), “Net Earnings” for any fiscal period means the net earnings attributable to the Company as reported in its consolidated financial statements for such period determined in accordance with accounting principles generally accepted in the United States as adjusted, in the Committee's sole discretion, to eliminate the effects of charges for restructurings, discontinued operations, unusual, nonrecurring or extraordinary items and all items of gain, loss or expense determined to be unusual, nonrecurring or extraordinary in nature and not indicative of the Company's normal operations or related to the disposal of a segment of a business or related to a change in accounting principle; provided, however, if Employee is, at the relevant time, a “covered employee” (as defined under Section 162(m) of the Code), such adjustments shall be made by the Committee but only to the extent consistent with Section 162(m) of the Code.

(c) After the Award Date, a number of restricted stock units equal to the Earned Net Earnings Growth Restricted Stock Units will become 100% vested (referred to as “Vested Units”) on the third anniversary of the Award Date (the “Maturity Date”), provided that, except as provided in subparagraph (d) below, Employee remains continuously employed by the Company or Related Company through such Maturity Date.

(d) Notwithstanding anything herein to the contrary, in the event that Employee’s employment with the Company terminates as a result of Employee’s Retirement prior to the Maturity Date, this Award shall remain outstanding and shall vest vest on the Maturity Date (based on actual performance through the entire

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performance period); provided, that on the Maturity Date only a pro-rated portion (based on the number of days during the period between the Award Date and the Maturity Date that Employee was employed by the Company prior to Employee’s Retirement) of the Earned Net Earnings Growth Restricted Stock Units will become vested, with the remainder of the Award forfeited at that time.

(e) Notwithstanding anything herein to the contrary, in the event of a Change in Control, the number of Earned Net Earnings Growth Restricted Stock Units shall be determined as of the date such Change in Control is consummated, rather than the Maturity Date, with the number of Earned Net Earnings Growth Restricted Stock Units determined as set forth in Section 2(b) hereof, except that: (1) if the Change in Control occurs prior to March 31, 2015, the Net Earnings Growth Performance Multiplier will be 100%; and (2) if the Change in Control occurs upon or after March 31, 2015, the number of Earned Net Earnings Growth Restricted Stock Units will be determined pursuant to Section 2(b) based upon performance through the March 31 immediately preceding or coinciding with the date of the Change in Control, plus an additional number of restricted stock units, not less than zero, equal to (A) the Target Net Earnings Growth Restricted Stock Units multiplied by the Net Earnings Growth Performance Multiplier determined based upon the average annual growth in the Company's Net Earnings through the end of the last fiscal quarter completed on or prior to the date of the Change in Control, minus (B) the amount determined pursuant to Section 2(b) based upon performance through the March 31 immediately preceding or coinciding with the date of the Change in Control.

Following a Change in Control, except as otherwise set forth in the Plan (including Schedule B thereof), the Earned Net Earnings Growth Restricted Stock Units shall remain outstanding and subject to the terms and conditions of the Plan and this Agreement, including the vesting condition of continued employment through the Maturity Date.

(f) Except as set forth herein and in the Plan (including Schedule B thereof the terms of which shall apply to the Award to the extent such terms do not conflict with the terms hereof), Employee has no rights, partial or otherwise in the Award and/or any shares of Jacobs Common Stock subject thereto unless and until the Award has been earned and vested pursuant to this Section 2.

(g) Each Vested Unit shall be settled by the delivery of one share of Common Stock (subject to adjustment under the Plan). Settlement will occur as soon as practicable following certification by the Company of the number of Earned Net Earnings Growth Restricted Stock Units and passage of the Maturity Date (or, if earlier, the date the Award becomes vested pursuant to the terms of the Plan, including Schedule B thereof), but in no event later than 30 days following the Maturity Date (or such earlier date that the Award becomes vested). No fractional shares shall be issued pursuant to this Agreement.

(h) Neither the Award, nor any interest therein nor shares of Jacobs Common Stock payable in respect thereof may be sold, assigned, transferred, pledged or

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otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily.

3.Section 409A Compliance

Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Plan and this Agreement shall be construed or deemed to be amended as necessary to comply with the requirements of Section 409A of the Code, to avoid the imposition of any additional or accelerated taxes or other penalties under Section 409A of the Code. The Committee, in its sole discretion, shall determine the requirements of Section 409A of the Code applicable to the Plan and this Agreement and shall interpret the terms of each consistently therewith. Under no circumstances, however, shall the Company have any liability under the Plan or this Agreement for any taxes, penalties or interest due on amounts paid or payable pursuant to the Plan and/or this Agreement, including any taxes, penalties or interest imposed under Section 409A of the Code.

4.Status of Participant

Employee shall have no rights as a stockholder (including, without limitation, any voting rights or rights to receive dividends with respect to the shares of Jacobs Common Stock subject to the Award) with respect to either the Award granted hereunder or the shares of Jacobs Common Stock underlying the Award, unless and until such shares are issued in respect of Vested Units, and then only to the extent of such issued shares.

5.Nature of Award

In accepting the Award, Employee acknowledges, understands and agrees that:

(a) The Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;

(b) The Award of the restricted stock units hereunder is voluntary and occasional and does not create any contractual or other right to receive future Awards of restricted stock units, or any benefits in lieu of restricted stock units, even if restricted stock units have been awarded in the past;

(c) All decisions with respect to future restricted stock unit or other awards, if any, will be at the sole discretion of the Company;

(d) The Award and Employee's participation in the Plan shall not create a right to employment or be interpreted as forming an employment or services contract with the Company, or any Related Companies and shall not interfere with the ability of the Company, or any Related Company, as applicable, to terminate Employee's employment or service relationship (if any);

(e) The Award and the shares of Jacobs Common Stock subject to the Award, the value of same, and any ultimate gain, loss, income or expense associated with the Award are not part of Employee's normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

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(f) No claim or entitlement to compensation or damages shall arise from forfeiture of the Award for any reason, including forfeiture resulting from Employee ceasing to provide employment or other services to the Company or any Related Company (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Employee is employed or the terms of Employee's employment agreement, if any), and in consideration of the Award to which Employee is otherwise not entitled, Employee irrevocably agrees never to institute or allow to be instituted on his or her behalf any claim against the Company or any of its Related Companies, waives his or her ability, if any, to bring any such claim, and releases the Company and any Related Companies from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Employee shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim.

6.Data Privacy

Employee understands that the Company and/or a Related Company may hold certain personal information about the Employee, including, but not limited to, Employee's name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of Jacobs Common Stock or directorships held in the Company, details of all Awards or any other entitlement to shares of Jacobs Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Employee's favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

Employee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Employee's personal data as described in this Agreement and any other Award materials by and among, as applicable, the Company and its Related Companies for the exclusive purpose of implementing, administering and managing Employee's participation in the Plan.

Employee understands that Data will be transferred to the Company's broker, administrative agents or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan. Employee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients' country (e.g., the United States) may have different data privacy laws and protections than Employee's country. Employee understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. The Employee understands that Data will be held only as long as is necessary to implement, administer and manage Employee's participation in the Plan.

7.Payment of Withholding Taxes

The payment of withholding taxes, if any, due upon the settlement of the Award may, at the discretion of the Committee, be satisfied by instructing the Company to withhold from the shares of Jacobs Common Stock otherwise issuable upon settlement of the Award that number of shares having a total Fair Market Value equal to the amount of income and withholding taxes due as determined by the Company. Under no circumstances can the Company be required to withhold from the shares of Jacobs Common Stock that would otherwise be delivered to

Restricted Stock Unit Agreement - Performance Shares - Net Earnings Growth

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Employee upon the settlement of the Award a number of shares having a total Fair Market Value that exceeds the amount of withholding taxes due as determined by the Company at the time the Award vests. Employee acknowledges and agrees that the Company may delay the delivery of the shares of Jacobs Common Stock that would otherwise be delivered to Employee upon settlement of the Award until Employee has made arrangements satisfactory to the Company to satisfy any tax withholding obligations of Employee.

8.Services as Employee

Nothing contained in this Agreement or the Plan constitutes an employment or service commitment by the Company, affects the Employee's status as an employee at will who is subject to termination without cause, confers upon the Employee any right to remain employed by or in service to the Company, interferes in any way with the right of the Company at any time to terminate such employment or services, or affects the right of the Company to increase or decrease the Employee's other compensation or benefits. Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Employee without his consent thereto.

9.Miscellaneous Provisions

This Agreement is governed in all respects by the Plan and applicable law. In the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan shall prevail. Subject to the limitations of the Plan, the Company may, with the written consent of Employee, amend this Agreement. This Agreement shall be construed, administered and enforced according to the laws of the State of California.

10.Agreement of Employee

By signing below, Employee (1) agrees to the terms and conditions of this Agreement, (2) confirms receipt of a copy of the Plan and all amendments and supplements thereto, and (3) appoints the officers of the Company as Employee's true and lawful attorney-in-fact, with full power of substitution in the premises, granting to each full power and authority to do and perform any and every act whatsoever requisite, necessary, or proper to be done, on behalf of Employee which, in the opinion of such attorney-in-fact, is necessary or prudent to effect the forfeiture of the Award to the Company, or the delivery of the Jacobs Common Stock to Employee, in accordance with the terms and conditions of this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set forth above.

JACOBS ENGINEERING GROUP INC.

By: _______________________

Craig L. Martin, President and CEO

EX-10.2

Exhibit 10.2

JACOBS ENGINEERING GROUP INC.RESTRICTED STOCK UNIT AGREEMENT

(Performance Shares – TSR)

This Agreement is executed as of this ____ day of __________ 20__ by and between JACOBS ENGINEERING GROUP INC. (the “Company”) and _________________ (“Employee”) pursuant to the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (the “Plan”). Unless the context clearly indicates otherwise, all terms defined in the Plan and used in this Agreement (whether or not capitalized) have the meanings as set forth in the Plan.

1.Restricted Stock Units

Pursuant to the Plan, and in consideration for services rendered to the Company or Related Company or for their benefit, the Company hereby issues, as of the above date (the “Award Date”) to Employee an award of restricted stock units in accordance with Paragraph 13 of the Plan and the terms and conditions of this Agreement (the “Award”). The target number of restricted stock units Employee is eligible to earn under this Agreement is ______________ (the “Target TSR Restricted Stock Units”). Each restricted stock unit represents the right to receive one share of Jacobs Common Stock (subject to adjustment pursuant to the Plan) in accordance with the terms and subject to the conditions (including the vesting conditions) set forth in this Agreement and the Plan.

2.Vesting, Distribution

(a) The Award shall not be vested as of the Award Date and shall be forfeitable by Employee without consideration or compensation unless and until otherwise vested pursuant to the terms of this Agreement.

(b) The number of restricted stock units earned under this Agreement (the “Earned TSR Restricted Stock Units”) shall be equal to the Target TSR Restricted Stock Units multiplied by the TSR Performance Multiplier (as defined herein). The “TSR Performance Multiplier” will be determined by comparing the Company’s total stockholder return to the total stockholder return of each of the companies in the Industry Peer Group (as set forth below) over the three-year period immediately following the Award Date (the “Performance Period”). For purposes of computing total stockholder return, the beginning stock price will be the average stock price over the 30 calendar day period ending on the Award Date and the ending stock price will be the average stock price over the 30 calendar day period ending on the last day of the Performance Period. Any dividend payments over the performance period by a company will be deemed re-invested on the ex-dividend date in additional shares of the company.

The TSR Performance Multiplier will be calculated as set forth in the following table based upon the Company’s total stockholder return over the Performance Period when ranked against the total stockholder return over the Performance Period of each of the companies in the Industry Peer Group:

Restricted Stock Unit Agreement – Performance Shares (TSR)

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Company TSR Rank	TSR Performance Multiplier
Below 30th percentile	0
30th percentile	50%
50th percentile	100%
70th percentile or above	150%

If the Company’s total stockholder return over the Performance Period is between the 30th and 50th percentiles or 50th and 70th percentiles when ranked against the total stockholder return over the Performance Period of each of the companies in the Industry Peer Group, the TSR Performance Multiplier will be determined using straight line interpolation based on the actual percentile ranking.

The “Industry Peer Group” consists of the following companies: AECOM Technology Corporation, Chicago Bridge & Iron Company, Computer Sciences Corporation, EMCOR Group, Inc., Fluor Corporation, Foster Wheeler AG, KBR, Inc., L-3 Communications Holdings, Inc., Leidos Holdings, Inc., Northrop Grumman Corporation, Quanta Services, Raytheon Company and URS Corporation, or any successors thereto, in each case, to the extent each is a publicly-traded corporation throughout the entire Performance Period.

(c) After the Award Date, a number of restricted stock units equal to the Earned TSR Restricted Stock Units will become 100% vested (referred to as “Vested Units”) on the third anniversary of the Award Date (the “Maturity Date”), provided that, except as provided in subparagraph (d) below, Employee remains continuously employed by the Company or Related Company through such Maturity Date.

(d) Notwithstanding anything herein to the contrary, in the event that Employee’s employment with the Company terminates as a result of Employee’s Retirement prior to the Maturity Date, this Award shall remain outstanding and shall vest on the Maturity Date based on actual performance through the entire performance period; provided, that on the Maturity Date only a pro-rated portion (based on the number of days during the period between the Award Date and the Maturity Date that Employee was employed by the Company prior to Employee’s Retirement) of the Earned TSR Restricted Stock Units will become vested, with the remainder of the Award forfeited at that time.

(e) Notwithstanding anything herein to the contrary, in the event of a Change in Control, the number of Earned TSR Restricted Stock Units shall be determined as of the date such Change in Control is consummated, rather than the Maturity Date, with the number of Earned TSR Restricted Stock Units determined as set forth in Section 2(b) hereof, except that: (1) if the Change in Control occurs prior to March 31, 2015, the Relative TSR Performance Multiplier will be 100%; and (2) if the Change in Control occurs upon or after March 31, 2015, the Relative TSR Performance Multiplier shall be determined pursuant to Section 2(b) based upon the Company’s total stockholder return and the total stockholder return of each of the companies in the Industry Peer Group through the date of the Change in Control (and, with respect to the Company, taking into account the consideration per share to be paid in the Change in Control transaction).

Restricted Stock Unit Agreement – Performance Shares (TSR)

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Following a Change in Control, except as otherwise set forth in the Plan (including Schedule B thereof), the Earned TSR Restricted Stock Units shall remain outstanding and subject to the terms and conditions of the Plan and this Agreement, including the vesting condition of continued employment through the Maturity Date.

(f) Except as set forth herein andin the Plan (including Schedule B thereof the terms of which shall apply to the Award to the extent such terms do not conflict with the terms hereof), Employee has no rights, partial or otherwise in the Award and/or any shares of Jacobs Common Stock subject thereto unless and until the Award has been earned and vested pursuant to this Section 2.

(g) Each Vested Unit shall be settled by the delivery of one share of Common Stock (subject to adjustment under the Plan). Settlement will occur as soon as practicable following certification by the Company of the number of Earned TSR Restricted Stock Units and passage of the Maturity Date (or, if earlier, the date the Award becomes vested pursuant to the terms of the Plan, including Schedule B thereof), but in no event later than 30 days following the Maturity Date (or such earlier date that the Award becomes vested). No fractional shares shall be issued pursuant to this Agreement.

(h) Neither the Award, nor any interest therein nor shares of Jacobs Common Stock payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily.

3.Section 409A Compliance

Notwithstanding any other provision of the Plan or this Agreement to the contrary, the Plan and this Agreement shall be construed or deemed to be amended as necessary to comply with the requirements of Section 409A of the Code, to avoid the imposition of any additional or accelerated taxes or other penalties under Section 409A of the Code. The Committee, in its sole discretion, shall determine the requirements of Section 409A of the Code applicable to the Plan and this Agreement and shall interpret the terms of each consistently therewith. Under no circumstances, however, shall the Company have any liability under the Plan or this Agreement for any taxes, penalties or interest due on amounts paid or payable pursuant to the Plan and/or this Agreement, including any taxes, penalties or interest imposed under Section 409A of the Code.

4.Status of Participant

Employee shall have no rights as a stockholder (including, without limitation, any voting rights or rights to receive dividends with respect to the shares of Jacobs Common Stock subject to the Award) with respect to either the Award granted hereunder or the shares of Jacobs Common Stock underlying the Award, unless and until such shares are issued in respect of Vested Units, and then only to the extent of such issued shares.

Restricted Stock Unit Agreement – Performance Shares (TSR)

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5. Nature of Award

In accepting the Award, Employee acknowledges, understands and agrees that:

(a) The Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;

(b) The Award of the restricted stock units hereunder is voluntary and occasional and does not create any contractual or other right to receive future Awards of restricted stock units, or any benefits in lieu of restricted stock units, even if restricted stock units have been awarded in the past;

(c) All decisions with respect to future restricted stock unit or other awards, if any, will be at the sole discretion of the Company;

(d) The Award and Employee’s participation in the Plan shall not create a right to employment or be interpreted as forming an employment or services contract with the Company, or any Related Companies and shall not interfere with the ability of the Company, or any Related Company, as applicable, to terminate Employee’s employment or service relationship (if any);

(e) The Award and the shares of Jacobs Common Stock subject to the Award, the value of same, and any ultimate gain, loss, income or expense associated with the Award are not part of Employee’s normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

(f) No claim or entitlement to compensation or damages shall arise from forfeiture of the Award for any reason, including forfeiture resulting from Employee ceasing to provide employment or other services to the Company or any Related Company (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Employee is employed or the terms of Employee’s employment agreement, if any), and in consideration of the Award to which Employee is otherwise not entitled, Employee irrevocably agrees never to institute or allow to be instituted on his or her behalf any claim against the Company or any of its Related Companies, waives his or her ability, if any, to bring any such claim, and releases the Company and any Related Companies from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan, Employee shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim.

Restricted Stock Unit Agreement – Performance Shares (TSR)

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6. Data Privacy

Employee understands that the Company and/or a Related Company may hold certain personal information about the Employee, including, but not limited to, Employee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of Jacobs Common Stock or directorships held in the Company, details of all Awards or any other entitlement to shares of Jacobs Common Stock awarded, canceled, exercised, vested, unvested or outstanding in Employee’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

Employee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Employee’s personal data as described in this Agreement and any other Award materials by and among, as applicable, the Company and its Related Companies for the exclusive purpose of implementing, administering and managing Employee’s participation in the Plan.

Employee understands that Data will be transferred to the Company’s broker, administrative agents or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan. Employee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than Employee’s country. Employee understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative. The Employee understands that Data will be held only as long as is necessary to implement, administer and manage Employee’s participation in the Plan.

7.Payment of Withholding Taxes

The payment of withholding taxes, if any, due upon the settlement of the Award may, at the discretion of the Committee, be satisfied by instructing the Company to withhold from the shares of Jacobs Common Stock otherwise issuable upon settlement of the Award that number of shares having a total Fair Market Value equal to the amount of income and withholding taxes due as determined by the Company. Under no circumstances can the Company be required to withhold from the shares of Jacobs Common Stock that would otherwise be delivered to Employee upon the settlement of the Award a number of shares having a total Fair Market Value that exceeds the amount of withholding taxes due as determined by the Company at the time the Award vests. Employee acknowledges and agrees that the Company may delay the delivery of the shares of Jacobs Common Stock that would otherwise be delivered to Employee upon settlement of the Award until Employee has made arrangements satisfactory to the Company to satisfy any tax withholding obligations of Employee.

8.Services as Employee

Nothing contained in this Agreement or the Plan constitutes an employment or service commitment by the Company, affects the Employee’s status as an employee at will who is subject to termination without cause, confers upon the Employee any right to remain employed by or in service to the Company, interferes in any way with the right of the Company at any time to terminate such

Restricted Stock Unit Agreement – Performance Shares (TSR)

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employment or services, or affects the right of the Company to increase or decrease the Employee’s other compensation or benefits. Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Employee without his consent thereto.

9.Miscellaneous Provisions

This Agreement is governed in all respects by the Plan and applicable law. In the event of any inconsistency between the terms of the Plan and this Agreement, the terms of the Plan shall prevail. Subject to the limitations of the Plan, the Company may, with the written consent of Employee, amend this Agreement. This Agreement shall be construed, administered and enforced according to the laws of the State of California.

10.Agreement of Employee

By signing below, Employee (1) agrees to the terms and conditions of this Agreement, (2) confirms receipt of a copy of the Plan and all amendments and supplements thereto, and (3) appoints the officers of the Company as Employee’s true and lawful attorney-in-fact, with full power of substitution in the premises, granting to each full power and authority to do and perform any and every act whatsoever requisite, necessary, or proper to be done, on behalf of Employee which, in the opinion of such attorney-in-fact, is necessary or prudent to effect the forfeiture of the Award to the Company, or the delivery of the Jacobs Common Stock to Employee, in accordance with the terms and conditions of this Agreement.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set forth above.

JACOBS ENGINEERING GROUP INC.

By: _______________________

Craig L. Martin, President and CEO

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Craig L. Martin, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 27, 2014 of Jacobs Engineering Group Inc.;

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.

/s/ Craig L. Martin

Craig L. Martin

Chief Executive Officer

August 1, 2014

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John W. Prosser, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 27, 2014 of Jacobs Engineering Group Inc.;

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.

/s/ John W. Prosser Jr.

John W. Prosser, Jr.

Chief Financial Officer

August 1, 2014

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. Section 1350

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Jacobs Engineering Group Inc. (the “Company”) on Form 10-Q for the quarter ended June 27, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Craig L. Martin, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Craig L. Martin

Craig L. Martin

Chief Executive Officer

August 1, 2014

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. Section 1350

Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Jacobs Engineering Group Inc. (the “Company”) on Form 10-Q for the quarter ended June 27, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John W. Prosser, Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ John W. Prosser, Jr.

John W. Prosser, Jr.

Executive Vice President,

Finance and Administration

August 1, 2014

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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”). Under the Mine Act, an independent contractor, such as Jacobs, that performs services or construction of a mine is included within the definition of a mining operator. We do not act as the owner of any mines. 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 quarter ended June 27, 2014.

Mine or Operating Name/MSHA Identification Number	Section 104 S&S Citations (#)	Section 104(b) Orders (#)	Section 104(d) Citations and Orders (#)	Section 110(b)(2) Violations (#)	Section 107(a) Orders (#)	Total Dollar Value of MSHA Assessments Proposed ($)		Total Number of Mining Related Fatalities (#)	Received Notice of Pattern of Violations Under Section 104(e) (yes/no)	Received Notice of Potential to Have Pattern Under Section 104(e) (yes/no)	Legal Actions Initiated During Period (#)	Legal Actions Resolved During Period (#)	Legal Actions Pending as of Last Day of Period (#)
Mine ID: 02-00024 1PL	4	—	1	—	—	$	8,580		No	No	54		66
Mine ID: 02-00144 1PL						$	—		No	No
Mine ID: 02-03131 1PL						$	—		No	No
Mine ID: 02-00137 1PL						$	—		No	No	1	1
Mine ID: 02-00150 1PL						$	—		No	No
Mine ID: 26-01962 1PL						$	—		No	No	3		3
Mine ID: 29-00159 1PL						$	117		No	No	2	1	1
Mine ID: 29-00762 1PL						$	—		No	No
Mine ID: 04-00743 Y713						$	—		No	No
Totals	4	—	1	—	—	$	8,697	—	No	No	60	2	70

Notes:

(1) Jacobs intends to contest the 1 "S&S" citation assessed this quarter at Mine ID 02-00024.

(2) The 60 litigation actions initiated in this reporting period pertain to citations assessed during multiple previous reporting periods. Jacobs is contesting the citations and anticipates a number of these citations will be vacated or their monetary penalties reduced and "S&S" designations, if any, removed.

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Other Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Amortization of Defined Benefit Items:
Earnings Before Taxes	$ 118,046	$ 168,423	$ 397,362	$ 486,642
Income Tax Benefit	(46,737)	(56,334)	(136,304)	(162,941)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Amortization of Defined Benefit Items:
Actuarial losses	(4,939)	(4,321)	(14,613)	(13,147)
Prior service cost	(28)	10	(81)	34
Earnings Before Taxes	(4,967)	(4,311)	(14,694)	(13,113)
Income Tax Benefit	1,403	1,237	4,152	3,761
Total Reclassifications, After-tax	$ (3,564)	$ (3,074)	$ (10,542)	$ (9,352)

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Property, Equipment and Improvements, Net (Details) (USD $) In Thousands, unless otherwise specified	Jun. 27, 2014	Sep. 27, 2013
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	$ 1,133,436	$ 919,170
Accumulated depreciation and amortization	(677,810)	(539,874)
Property, equipment and improvements, net	455,626	379,296
Land [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	21,872	22,027
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	132,902	131,690
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	667,052	537,835
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	298,840	204,940
Construction in Progress [Member]
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	$ 12,770	$ 22,678

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Revenue Accounting for Contracts / Accounting for Joint Ventures (Tables)

9 Months Ended

Jun. 27, 2014

Revenue Accounting for Contracts / Accounting for Joint Ventures [Abstract]

Schedule of Variable Interest Entities

The following table sets forth pass-through costs included in revenues for each of the three and nine months ended June 27, 2014 and June 28, 2013 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
Pass-through costs included in revenues	$	700,294	$	674,715	$	2,152,875	$	1,794,748

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Disclosures About Defined Pension Benefit Obligations (Defined Contribution Plans) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 27, 2014
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Cash contributions made during the first nine months of fiscal 2014	$ 49,354
Cash contributions we expect to make during the remainder of fiscal 2014	9,728
Total	$ 59,082

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Business Combinations

9 Months Ended

Jun. 27, 2014

Business Combinations [Abstract]

Business Combinations

Business Combinations

On December 13, 2013, the Company acquired all of the outstanding interests in Sinclair Knight Merz Management Pty Limited and Sinclair Knight Merz Holdings Limited (collectively, "SKM"), a provider of engineering, design, procurement, construction and project management services, from the SKM shareholders. The Company purchased SKM for approximately $1.2 billion in cash. The acquisition agreement includes customary representations, warranties, and indemnities supported by an escrow account. SKM's results of operations have been included in the Company's consolidated results of operations since the date of acquisition.

The Company has, in total, incurred approximately $16.6 million of expenses directly related to the SKM acquisition. Included in selling, general and administrative expense for the three and nine month periods ended June 27, 2014 are $0.2 million and $9.2 million, respectively, of transaction-related expenses.

The following table presents the preliminary allocation of the purchase price (in thousands) paid for SKM:

Assets:
Cash and cash equivalents	$	152,051
Receivables and other current assets	340,906
Property and equipment, and other	89,524
Intangible assets	246,696
Total assets	829,177
Liabilities:
Current liabilities	330,435
Deferred tax liability	86,344
Long-term liabilities	21,616
Total liabilities	438,395
Net identifiable assets acquired	$	390,782
Goodwill	828,892
Net assets acquired	$	1,219,674

The Company expects to collect substantially all of the acquired receivables of $304.6 million, net of acquired allowances.

The purchase price allocation of the SKM transaction continues to be subject to post-closing adjustment as the Company finalizes the values assigned to project-related assets and liabilities, claims, other contingencies, acquired intangible assets, and leased properties, among other items. The Company intends to complete the purchase price allocation by the end of the measurement period provided by U.S. GAAP. The preliminary useful lives of the intangible assets acquired from SKM range from 3 to 12 years.

Some of the factors contributing to the recognition of goodwill include: (i) access to a large, highly-trained and stable workforce; (ii) the opportunity to expand our client base in Australia, Asia, South America and the U.K.; (iii) the opportunity to expand our presence in multiple industries, including: mining, infrastructure, buildings, water and energy; and (iv) the opportunity to achieve operating synergies.

We expect that the goodwill recognized in this transaction will ultimately be deductible in the U.S. for federal income tax purposes.

The following table presents the unaudited, pro forma consolidated results of operations (in millions, except per share amounts) for the nine month periods ended June 27, 2014 and June 28, 2013 as if the acquisition of SKM operations had occurred as of September 29, 2012. The period end dates of SKM are different from those of the Company and, accordingly, certain adjustments were made to conform SKM's period end dates to those of the Company. Management believes these adjustments make the comparative data more representative of what the combined results of operations would have been over the pro forma period. The pro forma results are not necessarily indicative of (i) the results of operations that would have occurred had we actually acquired SKM on September 29, 2012; or (ii) future results of operations:

	For the Nine Months Ended
	June 27, 2014		June 28, 2013
Revenues	$	9,727	$	9,765
Net earnings attributable to Jacobs	249		369
Basic earnings per share	1.91		2.86
Diluted earnings per share	1.88		2.83

The pro forma earnings for the nine months ended June 27, 2014 were adjusted to exclude $21.4 million of transaction-related costs incurred by both parties and, for the nine months ended June 28, 2013, include $22.8 million of transaction-related costs (the difference being due to the effects of exchange rate changes) in the pro forma earnings. For the nine months ended June 27, 2014 and June 28, 2013, the pro forma earnings were adjusted to reduce interest expense by $0.8 million (for a total of $2.7 million) and to include incremental interest expense by $3.2 million (for a total of $4.3 million), respectively. For the nine months ended June 27, 2014 and June 28, 2013, the pro forma earnings were adjusted to include net incremental intangible amortization of $3.5 million (for a total of $17.8 million) and $15.5 million (for a total of $19.5 million), respectively. The difference in the total intangible amortization between the periods is due to the effects of exchange rate changes.

The pro forma earnings for the nine months ended June 27, 2014 include an expense from SKM of $24.0 million related to a settlement with certain SKM shareholders regarding provisions of their shareholding plan that was settled and paid prior to the close of the business combination and recorded during the three month period ended December 27, 2013.

During the nine months ended June 27, 2014, the Company also acquired Eagleton Engineering, LLC, FMHC Corporation, Stobbarts (Nuclear) Limited, Trompeter Enterprises, and MARMAC Field Services, Inc. The operations of these acquisitions were not material to the Company's consolidated results for the three and nine months ended June 27, 2014. During the three months ended June 27, 2014, we acquired an additional 15% interest in Zamel and Turbag Consulting Engineers Company ("ZATE"), a refining, chemicals, infrastructure and civil engineering company headquartered in Al Khobar, Saudi Arabia. This transaction brought the Company's ownership in ZATE to 75%. The Company also made an investment in Guimar Engenharia Ltda, a Brazilian-based engineering-based services and project management/construction management firm.

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Business Combinations (Details) (USD $)	0 Months Ended	9 Months Ended			3 Months Ended	9 Months Ended
	Dec. 13, 2013 Sinclair Knight Merz [Member]	Jun. 27, 2014 Sinclair Knight Merz [Member]	Jun. 28, 2013 Sinclair Knight Merz [Member]	Jun. 27, 2014 Zamel and Turbag Consulting Engineers Company (ZATE) [Member]	Jun. 27, 2014 Selling, General and Administrative Expenses [Member] Sinclair Knight Merz [Member]	Jun. 27, 2014 Selling, General and Administrative Expenses [Member] Sinclair Knight Merz [Member]	Jun. 27, 2014 Minimum [Member] Sinclair Knight Merz [Member]	Jun. 27, 2014 Maximum [Member] Sinclair Knight Merz [Member]	Jun. 27, 2014 Acquisition-related Costs [Member] Sinclair Knight Merz [Member]	Jun. 28, 2013 Acquisition-related Costs [Member] Sinclair Knight Merz [Member]	Jun. 27, 2014 Interest Expense [Member] Sinclair Knight Merz [Member]	Jun. 28, 2013 Interest Expense [Member] Sinclair Knight Merz [Member]	Jun. 27, 2014 Intangible Asset Amortization [Member] Sinclair Knight Merz [Member]	Jun. 28, 2013 Intangible Asset Amortization [Member] Sinclair Knight Merz [Member]
Business Acquisition [Line Items]
Payments to acquire business	$ 1,200,000,000
Acquisition-related costs		16,600,000			200,000	9,200,000
Acquired receivables	304,600,000
Useful life of intangibles							3 years	12 years
Adjustment to pro forma earnings		249,000,000	369,000,000						21,400,000	(22,800,000)	(800,000)	(3,200,000)	(3,500,000)	(15,500,000)
Pro forma intangible asset amortization		17,800,000	19,500,000
Pro forma interest expense		2,700,000	4,300,000
Loss from settlement related to shareholding plan provisions		$ 24,000,000
Additional percentage of ZATE equity acquired				15.00%
Total percentage ownership of ZATE				75.00%

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Earnings Per Share and Certain Related Information (Tables)

9 Months Ended

Jun. 27, 2014

Earnings Per Share Reconciliation [Abstract]

Earnings Per Share

The following table (i) reconciles the denominator used to compute basic earnings per share ("EPS") to the denominator used to compute diluted EPS for the three and nine months ended June 27, 2014 and June 28, 2013; (ii) provides information regarding the number of non-qualified stock options and shares of restricted stock that were antidilutive and therefore disregarded in calculating the weighted average number of shares outstanding used in computing diluted EPS; and (iii) provides the number of shares of common stock issued from the exercise of stock options and the release of restricted stock (in thousands):

	For the Three Months Ended		For the Nine Months Ended
	June 27, 2014	June 28, 2013	June 27, 2014	June 28, 2013
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)	130,738	129,536	130,417	129,094
Effect of stock options and restricted stock	1,873	1,759	2,043	1,496
Denominator used to compute diluted EPS	132,611	131,295	132,460	130,590
Antidilutive stock options and restricted stock	2,101	2,528	2,088	3,943
Shares of common stock issued from the exercise of stock options and the release of restricted stock	724	534	1,590	2,415

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Business Combinations (Allocation of Purchase Price) (Details) (USD $) In Thousands, unless otherwise specified	Jun. 27, 2014	Sep. 27, 2013	Dec. 13, 2013 Sinclair Knight Merz [Member]
Assets:
Cash and cash equivalents			$ 152,051
Receivables and other current assets			340,906
Property and equipment, and other			89,524
Intangible assets			246,696
Total assets			829,177
Liabilities:
Current liabilities			330,435
Deferred tax liability			86,344
Long-term liabilities			21,616
Total liabilities			438,395
Net assets acquired			390,782
Goodwill	2,938,686	2,022,831	828,892
Net assets acquired			$ 1,219,674

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Business Combinations (Pro-forma Results) (Details) (Sinclair Knight Merz [Member], USD $) In Millions, except Per Share data, unless otherwise specified	9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013
Pro Forma Results [Abstract]
Revenues	$ 9,727	$ 9,765
Net earnings attributable to Jacobs	249.0	369.0
Basic earnings per share (in dollars per share)	$ 1.91	$ 2.86
Diluted earnings per share (in dollars per share)	$ 1.88	$ 2.83
Acquisition-related Costs [Member]
Pro Forma Results [Abstract]
Net earnings attributable to Jacobs	$ 21.4	$ (22.8)

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New Accounting Standards

9 Months Ended

Jun. 27, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

New Accounting Standards

From time to time, the Financial Accounting Standards Board ("FASB") issues accounting standards updates (each being an "ASU") to its Accounting Standards Codification ("ASC"), which constitutes the primary source of U.S. GAAP. The Company regularly monitors ASUs as they are issued and considers their applicability to its business. All ASUs applicable to the Company are adopted by the due date and in the manner prescribed by the FASB.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU requires entities to recognize the amount of revenue to which they expect to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016. Early application is not permitted. We are evaluating the effect that this standard will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method.

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Receivables (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 27, 2014	Sep. 27, 2013
Components of receivables:
Amounts billed	$ 1,350,511	$ 1,389,278
Unbilled receivables and other	1,317,215	1,109,931
Retentions receivable	68,284	49,781
Total receivables, net	2,736,010	2,548,990
Other information about receivables:
Amounts due from the United States federal government, included above, net of advanced billings	255,267	292,698
Claims receivable	$ 72,249	$ 25,237
Unbilled amounts billed and collected	12 months

XML

Earnings Per Share and Certain Related Information (Details) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)	130,738	129,536	130,417	129,094
Effect of stock options and restricted stock	1,873	1,759	2,043	1,496
Denominator used to compute diluted EPS	132,611	131,295	132,460	130,590
Antidilutive stock options and restricted stock	2,101	2,528	2,088	3,943
Shares of common stock issued from the exercise of stock options and the release of restricted stock	724	534	1,590	2,415

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 27, 2014	Sep. 27, 2013
Current Assets:
Cash and cash equivalents	$ 772,613	$ 1,256,405
Receivables	2,736,010	2,548,990
Deferred income taxes	147,956	131,086
Prepaid expenses and other	96,537	103,077
Total current assets	3,753,116	4,039,558
Property, Equipment and Improvements, Net	455,626	379,296
Other Noncurrent Assets:
Goodwill	2,938,686	2,022,831
Intangibles	478,122	217,904
Miscellaneous	707,029	614,555
Total other non-current assets	4,123,837	2,855,290
Assets	8,332,579	7,274,144
Current Liabilities:
Notes payable	41,351	22,783
Accounts payable	421,132	457,893
Accrued liabilities	1,319,652	1,029,816
Billings in excess of costs	366,980	345,097
Income taxes payable	20,823	32,030
Total current liabilities	2,169,938	1,887,619
Long-term Debt	789,416	415,086
Other Deferred Liabilities	840,567	723,104
Commitments and Contingencies
Capital stock:
Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none	0	0
Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding—133,009,553 shares and 131,639,196 shares, respectively	133,010	131,639
Additional paid-in capital	1,167,221	1,084,624
Retained earnings	3,504,788	3,300,961
Accumulated other comprehensive loss	(303,992)	(304,127)
Total Jacobs stockholders’ equity	4,501,027	4,213,097
Noncontrolling interests	31,631	35,238
Total Group stockholders’ equity	4,532,658	4,248,335
Liabilities and Stockholders' Equity, Total	$ 8,332,579	$ 7,274,144

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013
Cash Flows from Operating Activities:
Net earnings attributable to the Group	$ 261,058	$ 323,701
Depreciation and amortization:
Property, equipment and improvements	70,701	49,828
Intangible assets	35,329	22,327
Gain on sale of certain intellectual property	(12,147)	0
Stock based compensation	32,546	28,493
Tax deficiency from stock based compensation	140	3,292
Equity in earnings of operating ventures, net	(7,065)	(11,759)
Change in pension plan obligations	(10,245)	(3,956)
Change in deferred compensation plans	(5,957)	(6,658)
Losses on sales of assets, net	1,595	465
Changes in certain assets and liabilities, excluding the effects of businesses acquired:
Receivables	171,861	(32,551)
Prepaid expenses and other current assets	20,065	6,910
Accounts payable	(87,753)	(27,674)
Accrued liabilities	66,456	46,445
Billings in excess of costs	(28,029)	37,306
Income taxes payable	(5,225)	(12,036)
Deferred income taxes	(12,493)	2,925
Other deferred liabilities	7,058	(2,259)
Change in long-term receivables	2,828	12,913
Long-term insurance prepayment	(17,602)	0
Other, net	2,092	(514)
Net cash provided by operating activities	485,213	437,198
Cash Flows from Investing Activities:
Additions to property and equipment	(92,033)	(91,520)
Disposals of property and equipment	966	3,561
Change in cash related to consolidation of joint ventures	0	4,331
Purchases of investments	(25,539)	(7)
Sales of investments	0	11
Acquisitions of businesses, net of cash acquired	(1,226,352)	(22,313)
Net cash used for investing activities	(1,342,958)	(105,937)
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	669,681	0
Repayments of long-term borrowings	(302,386)	(87,851)
Proceeds from short-term borrowings	174,374	28,312
Repayments of short-term borrowings	(189,490)	(15,602)
Proceeds from issuances of common stock	34,175	35,227
Tax deficiency from stock based compensation	(140)	(3,292)
Distributions to noncontrolling interests	(6,043)	(7,974)
Net cash provided by (used for) financing activities	380,171	(51,180)
Effect of Exchange Rate Changes	(6,218)	(17,021)
Net (Decrease) Increase in Cash and Cash Equivalents	(483,792)	263,060
Cash and Cash Equivalents at the Beginning of the Period	1,256,405	1,032,457
Cash and Cash Equivalents at the End of the Period	$ 772,613	$ 1,295,517

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Revenue Accounting for Contracts / Accounting for Joint Ventures (Subcontractor Costs) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Revenue Accounting for Contracts / Accounting for Joint Ventures [Abstract]
Pass-through costs included in revenues	$ 700,294	$ 674,715	$ 2,152,875	$ 1,794,748

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Business Combinations (Tables)

9 Months Ended

Jun. 27, 2014

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the preliminary allocation of the purchase price (in thousands) paid for SKM:

Assets:
Cash and cash equivalents	$	152,051
Receivables and other current assets	340,906
Property and equipment, and other	89,524
Intangible assets	246,696
Total assets	829,177
Liabilities:
Current liabilities	330,435
Deferred tax liability	86,344
Long-term liabilities	21,616
Total liabilities	438,395
Net identifiable assets acquired	$	390,782
Goodwill	828,892
Net assets acquired	$	1,219,674

Business Acquisition, Pro Forma Information

The pro forma results are not necessarily indicative of (i) the results of operations that would have occurred had we actually acquired SKM on September 29, 2012; or (ii) future results of operations:

	For the Nine Months Ended
	June 27, 2014		June 28, 2013
Revenues	$	9,727	$	9,765
Net earnings attributable to Jacobs	249		369
Basic earnings per share	1.91		2.86
Diluted earnings per share	1.88		2.83

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Disclosures About Defined Pension Benefit Obligations (Schedule of Pension Plans' Net Benefit Obligation) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Component:
Service cost	$ 10,529	$ 10,876	$ 31,401	$ 32,895
Interest cost	20,270	17,242	60,221	52,331
Expected return on plan assets	(22,712)	(19,917)	(67,552)	(60,374)
Amortization of previously unrecognized items	4,941	5,223	14,617	15,849
Settlement Loss	142	197	422	598
Net periodic benefit cost	$ 13,170	$ 13,621	$ 39,109	$ 41,299

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Property, Equipment and Improvements, Net (Tables)

9 Months Ended

Jun. 27, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Equipment and Improvements, Net in the accompanying Consolidated Balance Sheets at June 27, 2014 and September 27, 2013 consisted of the following (in thousands):

	June 27, 2014			September 27, 2013
Land	$	21,872		$	22,027
Buildings	132,902			131,690
Equipment	667,052			537,835
Leasehold improvements	298,840			204,940
Construction in progress	12,770			22,678
	1,133,436			919,170
Accumulated depreciation and amortization	(677,810		)	(539,874		)
	$	455,626		$	379,296

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Basis of Presentation

9 Months Ended

Jun. 27, 2014

Basis of Presentation [Abstract]

Basis of Presentation

Basis of Presentation

Unless the context otherwise requires:

• References herein to "Jacobs" are to Jacobs Engineering Group Inc. and its predecessors;

• References herein to the "Company", "we", "us" or "our" are to Jacobs Engineering Group Inc. and its consolidated subsidiaries; and

• References herein to the "Group" are to the combined economic interests and activities of the Company and the persons and entities holding noncontrolling interests in our consolidated subsidiaries.

The accompanying consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted. Readers of this report should also read our consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 27, 2013 ("2013 Form 10-K") as well as Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations, which is also included in our 2013 Form 10-K.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements at June 27, 2014, and for the three and nine month periods ended June 27, 2014 and June 28, 2013.

Our interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

Please refer to Note 16 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K for the definitions of certain terms used herein.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with U.S. GAAP requires us to employ estimates and make assumptions that affect the reported amounts of certain assets and liabilities; the revenues and expenses reported for the periods covered by the accompanying consolidated financial statements; and certain amounts disclosed in these Notes to the Consolidated Financial Statements. Although such estimates and assumptions are based on management's most recent assessment of the underlying facts and circumstances utilizing the most current information available and past experience, actual results could differ significantly from those estimates and assumptions. Our estimates, judgments, and assumptions are evaluated periodically and adjusted accordingly. Please refer to Note 2 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K for a discussion of the significant estimates and assumptions affecting our consolidated financial statements.

Fair Value and Fair Value Measurements

Certain amounts included in the accompanying consolidated financial statements are presented at "fair value". Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the date fair value is determined (the "measurement date"). When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider only those assumptions we believe a typical market participant would consider when pricing an asset or liability. In measuring fair value, we use the following inputs in the order of priority indicated:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices in active markets included in Level 1, such as (i) quoted prices for similar assets or liabilities; (ii) quoted prices in markets that have insufficient volume or infrequent transactions (i.e., less active markets); and (iii) model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data for substantially the full term of the asset or liability.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the fair value measurement.

Please refer to Note 2 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K for a more complete discussion of the various amounts within the consolidated financial statements measured at fair value and the methods used to determine fair value.

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Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 27, 2014	Sep. 27, 2013
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, authorized (in shares)	240,000,000	240,000,000
Common stock, issued (in shares)	133,009,553	131,639,196
Common stock, outstanding (in shares)	133,009,553	131,639,196

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Commitments and Contingencies

9 Months Ended

Jun. 27, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In the normal course of business, we are subject to certain contractual guarantees, claims and litigation. The guarantees to which we are a party generally relate to project schedules and plant performance. Most of the claims and litigation in which we are involved has us as a defendant in workers' compensation; personal injury; environmental; employment/labor; professional liability; and other similar matters.

We maintain insurance coverage for various aspects of our business and operations. Our insurance programs have varying coverage limits and maximums, and insurance companies may and increasingly do seek to not pay any claims we might make. We have also elected to retain a portion of losses that occur through the use of various deductibles, limits, and retentions under our insurance programs. As a result, we may be subject to future liability for which we are only partially insured or completely uninsured. We intend to mitigate any such future liability by continuing to exercise prudent business judgment in negotiating the terms and conditions of our contracts. Our insurers are also subject to business risk and, as a result, one or more of them may be unable to fulfill their insurance obligations due to insolvency or otherwise.

Additionally, as a contractor providing services to the U.S. federal government and several of its agencies, we are subject to many levels of audits, investigations, and claims by, or on behalf of, the U.S. federal government with respect to our contract performance, pricing, costs, cost allocations, and procurement practices. Furthermore, our income, franchise, and similar tax returns and filings are also subject to audit and investigation by the Internal Revenue Service, most states within the U.S. as well as by various government agencies representing jurisdictions outside the U.S.

We record in our Consolidated Balance Sheets amounts representing our estimated liability relating to such claims, guarantees, litigation, and audits and investigations. We perform an analysis to determine the level of reserves to establish for claims that may be insured that are known and have been asserted against us, and for claims that may be insured that are believed to have been incurred based on actuarial analysis, but have not yet been reported to our claims administrators as of the respective balance sheet dates. We include any adjustments to such insurance reserves in our consolidated results of operations.

Management believes, after consultation with counsel, that such guarantees, litigation, U.S. government contract-related audits, investigations and claims, and income tax audits and investigations should not have any material adverse effect on our consolidated financial statements.

On January 20, 2010, Clark County Nevada ("Clark County") filed suit against Jacobs and two of its subsidiaries asserting claims arising out of certain construction projects to which Clark County Nevada was the owner and for which Jacobs' subsidiaries served as the project management consultant. Clark County's lawsuit against Jacobs followed years of litigation and arbitration between Clark County and its construction contractor on the applicable projects which had ended unsuccessfully for Clark County and resulted in Clark County paying more than $60 million in settlement and awards. Jacobs denied liability and vigorously defended against the County's claims. Although Jacobs paid a cash settlement to Clark County in March 2014 to resolve the litigation, it pursued reimbursement of that payment from its insurers, and subsequently resolved coverage disputes with those insurers, subject to the execution of final agreements. As a result, the Company does not expect the settlement of this matter to have any material adverse effect on its consolidated financial statements.

The Company is a defendant in numerous matters pending in North Carolina's Superior Courts arising out of a June 9, 2009 natural gas explosion at a ConAgra Foods Inc. plant in Garner, Wake County, North Carolina. The claims that have been brought against the Company include wrongful death claims, personal injury claims and a claim for property losses to the plant property itself. The Company has settled all but one of the personal injury claims and is vigorously defending the remaining claim and believes it has meritorious defenses. In addition, the Company believes it has adequate insurance coverage as well as a right to indemnification from ConAgra, from whom the company is pursuing recovery. Accordingly, the Company does not expect the remaining matter to have any material adverse effect on its consolidated financial statements.

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Document And Entity Information	9 Months Ended
	Jun. 27, 2014	Jul. 29, 2014
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 27, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Trading Symbol	jec
Entity Registrant Name	JACOBS ENGINEERING GROUP INC /DE/
Entity Central Index Key	0000052988
Current Fiscal Year End Date	--09-26
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		133,056,998

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Basis of Presentation Use of Estimates and Assumptions (Policies)

9 Months Ended

Jun. 27, 2014

Income Statement [Abstract]

Use of Estimates and Assumptions

The preparation of financial statements in conformity with U.S. GAAP requires us to employ estimates and make assumptions that affect the reported amounts of certain assets and liabilities; the revenues and expenses reported for the periods covered by the accompanying consolidated financial statements; and certain amounts disclosed in these Notes to the Consolidated Financial Statements. Although such estimates and assumptions are based on management's most recent assessment of the underlying facts and circumstances utilizing the most current information available and past experience, actual results could differ significantly from those estimates and assumptions. Our estimates, judgments, and assumptions are evaluated periodically and adjusted accordingly. Please refer to Note 2 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K for a discussion of the significant estimates and assumptions affecting our consolidated financial statements.

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Consolidated Statements of Earnings (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Revenues	$ 3,231,791	$ 3,080,995	$ 9,476,715	$ 8,675,720
Costs and Expenses:
Direct cost of contracts	(2,670,052)	(2,613,991)	(7,944,731)	(7,308,092)
Selling, general and administrative expenses	(437,802)	(298,645)	(1,140,565)	(873,797)
Operating Profit	123,937	168,359	391,419	493,831
Other Income (Expense):
Interest income	2,624	1,332	7,425	3,521
Interest expense	(5,565)	(2,786)	(10,490)	(9,515)
Gain on sale of intellectual property, net	0	0	12,147	0
Miscellaneous income (expense), net	(2,950)	1,518	(3,139)	(1,195)
Total other income (expense), net	(5,891)	64	5,943	(7,189)
Earnings Before Taxes	118,046	168,423	397,362	486,642
Income Tax Expense	(46,737)	(56,334)	(136,304)	(162,941)
Net Earnings of the Group	71,309	112,089	261,058	323,701
Net Earnings Attributable to Noncontrolling Interests	(6,467)	(3,218)	(19,024)	(11,419)
Net Earnings Attributable to Jacobs	$ 64,842	$ 108,871	$ 242,034	$ 312,282
Net Earnings Per Share:
Basic (in dollars per share)	$ 0.50	$ 0.84	$ 1.86	$ 2.42
Diluted (in dollars per share)	$ 0.49	$ 0.83	$ 1.83	$ 2.39

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Long-term Debt

9 Months Ended

Jun. 27, 2014

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

On February 7, 2014, Jacobs and certain of its subsidiaries entered into a $1.6 billion long-term unsecured, revolving credit facility (the "2014 Facility") with a syndicate of large, U.S. and international banks and financial institutions. The 2014 Facility replaced and refinanced the Company's previous $1.21 billion unsecured revolving credit facility originally entered into by the Company on March 29, 2012 (the "2012 Facility"). All commitments under the 2012 Facility were terminated effective as of the closing date and all amounts due thereunder were refinanced under the 2014 Facility. The 2014 Facility also provides an accordion feature that allows the Company and the lenders to increase the facility amount to $2.1 billion. The 2014 Facility did not change interest rates for borrowings outstanding under the 2012 Facility, but did reduce the fees on the unused portion of the facility.

The total amount outstanding under the 2014 Facility in the form of direct borrowings at June 27, 2014 was $0.8 billion. The Company has issued $10.5 million in letters of credit leaving $0.8 billion of available borrowing capacity under the 2014 Facility at June 27, 2014. In addition, the Company had $342.4 million issued under separate, committed and uncommitted letter-of-credit facilities for total issued letters of credit of $352.9 million at June 27, 2014.

The 2014 Facility expires inFebruary 2019and permits the Company to borrow undertwoseparate tranches in U.S. dollars, certain specified foreign currencies, and any other currency that may be approved in accordance with the terms of the 2014 Facility. Depending on the Company's Consolidated Leverage Ratio, borrowings under the 2014 Facility will bear interest at either a eurocurrency rate plus a margin of between1.000%and1.500%or a base rate plus a margin of between0%and0.5%. The 2014 Facility also provides for a financial letter of credit subfacility of $300.0 million, permits performance letters of credit, and provides for a $50.0 million subfacility for swingline loans. Letters of credit are subject to fees based on the Company's Consolidated Leverage Ratio at the time any such letter of credit is issued. The Company pays a facility fee of between 0.100% and 0.250% per annum depending on the Company's Consolidated Leverage Ratio. Amounts outstanding under the 2014 Facility may be prepaid at the option of the Company without premium or penalty, subject to customary breakage fees in connection with the prepayment of eurocurrency loans. The 2014 Facility contains affirmative, negative, and financial covenants customary for financings of this type including, among other things, limitations on certain other indebtedness, loans and investments, liens, mergers, asset sales and transactions with affiliates. Inaddition, the 2014 Facility contains customary events of default. We were in compliance with our debt covenants atJune 27, 2014.

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Property, Equipment and Improvements, Net

9 Months Ended

Jun. 27, 2014

Property, Plant and Equipment [Abstract]

Property, Equipment and Improvements, Net

Property, Equipment and Improvements, Net

Property, Equipment and Improvements, Net in the accompanying Consolidated Balance Sheets at June 27, 2014 and September 27, 2013 consisted of the following (in thousands):

	June 27, 2014			September 27, 2013
Land	$	21,872		$	22,027
Buildings	132,902			131,690
Equipment	667,052			537,835
Leasehold improvements	298,840			204,940
Construction in progress	12,770			22,678
	1,133,436			919,170
Accumulated depreciation and amortization	(677,810		)	(539,874		)
	$	455,626		$	379,296

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Receivables (Tables)

9 Months Ended

Jun. 27, 2014

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable

The following table presents the components of "Receivables" appearing in the accompanying Consolidated Balance Sheets at June 27, 2014 and September 27, 2013 as well as certain other related information (in thousands):

	June 27, 2014		September 27, 2013
Components of receivables:
Amounts billed	$	1,350,511	$	1,389,278
Unbilled receivables and other	1,317,215		1,109,931
Retentions receivable	68,284		49,781
Total receivables, net	$	2,736,010	$	2,548,990
Other information about receivables:
Amounts due from the United States federal government,     included above, net of advanced billings	$	255,267	$	292,698
Claims receivable	$	72,249	$	25,237

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Basis of Presentation New Accounting Pronouncements (Policies)

9 Months Ended

Jun. 27, 2014

Accounting Policies [Abstract]

New Accounting Standards

From time to time, the Financial Accounting Standards Board ("FASB") issues accounting standards updates (each being an "ASU") to its Accounting Standards Codification ("ASC"), which constitutes the primary source of U.S. GAAP. The Company regularly monitors ASUs as they are issued and considers their applicability to its business. All ASUs applicable to the Company are adopted by the due date and in the manner prescribed by the FASB.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU requires entities to recognize the amount of revenue to which they expect to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. This ASU is effective for annual and interim reporting periods beginning after December 15, 2016. Early application is not permitted. We are evaluating the effect that this standard will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method.

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Other Comprehensive Income

9 Months Ended

Jun. 27, 2014

Equity [Abstract]

Other Comprehensive Income

Other Comprehensive Income

The following table presents amounts reclassified from change in pension liabilities in other comprehensive income to direct cost of contracts and selling, general and administrative expenses in the Company's Consolidated Statements of Earnings for the three and nine months ended June 27, 2014 and June 28, 2013 related to the Company's defined benefit pension plans (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Amortization of Defined Benefit Items:
Actuarial losses	$	(4,939	)	$	(4,321	)	$(14,613)			$(13,147)
Prior service cost	(28		)	10			(81		)	34
Total Before Income Tax	(4,967		)	(4,311		)	(14,694		)	(13,113		)
Income Tax Benefit	1,403			1,237			4,152			3,761
Total Reclassifications, After-tax	$	(3,564	)	$	(3,074	)	$	(10,542	)	$	(9,352	)

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Revenue Accounting for Contracts / Accounting for Joint Ventures

9 Months Ended

Jun. 27, 2014

Revenue Accounting for Contracts / Accounting for Joint Ventures [Abstract]

Revenue Accounting for Contracts / Accounting for Joint Ventures

Revenue Accounting for Contracts / Accounting for Joint Ventures

In general, we recognize revenue at the time we provide services. Depending on the commercial terms of the contract, we recognize revenues either when costs are incurred, or using the percentage-of-completion method of accounting by relating contract costs incurred to date to the total estimated costs at completion. Contract losses are provided for in their entirety in the period they become known, without regard to the percentage-of-completion. For multiple contracts with a single customer we account for each contract separately. We also recognize as revenues, costs associated with claims and unapproved change orders to the extent it is probable that such claims and change orders will result in additional contract revenue, and the amount of such additional revenue can be reliably estimated. A significant portion of the Company's revenue is earned on cost reimbursable contracts. The percentage of revenues realized by the Company by type of contract during fiscal 2013 can be found in Note 1 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K.

Certain cost-reimbursable contracts include incentive-fee arrangements. The incentive fees in such contracts can be based on a variety of factors but the most common are the achievement of target completion dates, target costs, and/or other performance criteria. Failure to meet these targets can result in unrealized incentive fees. We recognize incentive fees based on expected results using the percentage-of-completion method of accounting. As the contract progresses and more information becomes available, the estimate of the anticipated incentive fee that will be earned is revised as necessary. We bill incentive fees based on the terms and conditions of the individual contracts. In certain situations, we are allowed to bill a portion of the incentive fees over the performance period of the contract. In other situations, we are allowed to bill incentive fees only after the target criterion has been achieved. Incentive fees which have been recognized but not billed are included in Receivables in the accompanying Consolidated Balance Sheets.

Certain cost-reimbursable contracts with government customers as well as certain commercial clients provide that contract costs are subject to audit and adjustment. In this situation, revenues are recorded at the time services are performed based upon the amounts we expect to realize upon completion of the contracts. Revenues are not recognized for non-recoverable costs. In those situations where an audit indicates that we may have billed a client for costs not allowable under the terms of the contract, we estimate the amount of such nonbillable costs and adjust our revenues accordingly.

When we are directly responsible for subcontractor labor or third-party materials and equipment, we reflect the costs of such items in both revenues and costs. On those projects where the client elects to pay for such items directly and we have no associated responsibility for such items, these amounts are not reflected in either revenues or costs.

The following table sets forth pass-through costs included in revenues for each of the three and nine months ended June 27, 2014 and June 28, 2013 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 27, 2014		June 28, 2013		June 27, 2014		June 28, 2013
Pass-through costs included in revenues	$	700,294	$	674,715	$	2,152,875	$	1,794,748

As is common to the industry, we execute certain contracts jointly with third parties through various forms of joint ventures and consortiums. Although the joint ventures own and hold the contracts with the clients, the services required by the contracts are typically performed by us and our joint venture partners, or by other subcontractors under subcontracting agreements with the joint ventures. The assets of our joint ventures, therefore, consist almost entirely of cash and receivables (representing amounts due from clients), and the liabilities of our joint ventures consist almost entirely of amounts due to the joint venture partners (for services provided by the partners to the joint ventures under their individual subcontracts) and other subcontractors. In general, at any given time, the equity of our joint ventures represents the undistributed profits earned on contracts the joint ventures hold with clients. Very few of our joint ventures have employees. None of our joint ventures have third-party debt or credit facilities. Our joint ventures, therefore, are simply mechanisms used to deliver engineering and construction services to clients. Rarely do they, in and of themselves, present any risk of loss to us or to our partners separate from those that we would carry if we were performing the contract on our own. Under U.S. GAAP, our share of losses associated with the contracts held by the joint ventures, if and when they occur, has always been reflected in our Consolidated Financial Statements.

Certain of our joint ventures meet the definition of a "variable interest entity" ("VIE"). As defined in U.S. GAAP, a VIE is a legal entity in which equity investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack any one of the following three characteristics: (i) the power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impact the entity's economic performance; (ii) the obligation to absorb the expected losses of the legal entity; or (iii) the right to receive the expected residual returns of the legal entity. Accordingly, entities issuing consolidated financial statements (i.e., a "reporting entity") shall consolidate a VIE if the reporting entity has a "controlling financial interest" in the VIE, as demonstrated by the reporting entity having both (i) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance; and (ii) the right to receive benefits from the VIE that could potentially be significant to the VIE or the obligation to absorb losses of the VIE that could potentially be significant to the VIE.

In evaluating our VIEs for possible consolidation, we perform a qualitative analysis to determine whether or not we have a "controlling financial interest" in the VIE as defined by U.S. GAAP. We consolidate only those VIEs over which we have a controlling financial interest. For the Company’s unconsolidated joint ventures, we use the equity method of accounting. The Company does not currently participate in any significant VIEs in which it has a controlling financial interest.

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Disclosures About Defined Pension Benefit Obligations

9 Months Ended

Jun. 27, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Disclosures About Defined Pension Benefit Obligations

Disclosures About Defined Pension Benefit Obligations

The following table presents the components of net periodic benefit cost recognized in earnings during each of the three and nine months ended June 27, 2014 and June 28, 2013 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
Component:	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Service cost	$	10,529		$	10,876		$	31,401		$	32,895
Interest cost	20,270			17,242			60,221			52,331
Expected return on plan assets	(22,712		)	(19,917		)	(67,552		)	(60,374		)
Amortization of previously unrecognized items	4,941			5,223			14,617			15,849
Settlement Loss	142			197			422			598
Net periodic benefit cost	$	13,170		$	13,621		$	39,109		$	41,299

Included in the above table are amounts relating to a U.S. pension plan, the participating employees of which are assigned to, and work exclusively on, a specific operating contract with the U.S. federal government. It is the expectation of the parties to this contract that the cost of this pension plan will be fully reimbursed by the U.S. federal government pursuant to applicable cost accounting standards. The underfunded amount for this pension plan is included in "Other Noncurrent Assets" in the accompanying Consolidated Balance Sheets at June 27, 2014. Net periodic pension costs for this pension plan for the three and nine months ended June 27, 2014 were $1.9 million and $5.8 million, respectively, and for the three and nine months ended June 28, 2013 were $3.5 million and $10.5 million, respectively. Amounts related to the amortization of previously unrecognized items for this pension plan for the three and nine months ended June 27, 2014 were approximately zero and $0.1 million, respectively, and for the three and nine months ended June 28, 2013 were $0.9 million and $2.7 million, respectively.

The following table presents certain information regarding Company cash contributions to our pension plans for fiscal 2014 (in thousands):

Cash contributions made during the first nine months of fiscal 2014	$	49,354
Cash contributions we expect to make during the remainder of fiscal 2014	9,728
Total	$	59,082

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Earnings Per Share and Certain Related Information

9 Months Ended

Jun. 27, 2014

Earnings Per Share Reconciliation [Abstract]

Earnings Per Share and Certain Related Information

Earnings Per Share and Certain Related Information

The following table (i) reconciles the denominator used to compute basic earnings per share ("EPS") to the denominator used to compute diluted EPS for the three and nine months ended June 27, 2014 and June 28, 2013; (ii) provides information regarding the number of non-qualified stock options and shares of restricted stock that were antidilutive and therefore disregarded in calculating the weighted average number of shares outstanding used in computing diluted EPS; and (iii) provides the number of shares of common stock issued from the exercise of stock options and the release of restricted stock (in thousands):

	For the Three Months Ended		For the Nine Months Ended
	June 27, 2014	June 28, 2013	June 27, 2014	June 28, 2013
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)	130,738	129,536	130,417	129,094
Effect of stock options and restricted stock	1,873	1,759	2,043	1,496
Denominator used to compute diluted EPS	132,611	131,295	132,460	130,590
Antidilutive stock options and restricted stock	2,101	2,528	2,088	3,943
Shares of common stock issued from the exercise of stock options and the release of restricted stock	724	534	1,590	2,415

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Long-term Debt (Revolving Credit Facility) (Details) (USD $)	9 Months Ended			9 Months Ended
	Jun. 27, 2014 tranche	Jun. 27, 2014 Letter of Credit [Member]	Jun. 27, 2014 Subfacility of Swingline Loans [Member]	Jun. 27, 2014 Minimum [Member]	Jun. 27, 2014 Minimum [Member] Eurocurrency Interest Rate [Member]	Jun. 27, 2014 Minimum [Member] Base Interest Rate [Member]	Jun. 27, 2014 Maximum [Member]	Jun. 27, 2014 Maximum [Member] Eurocurrency Interest Rate [Member]	Jun. 27, 2014 Maximum [Member] Base Interest Rate [Member]	Jun. 27, 2014 2014 Facility [Member]	Jun. 27, 2014 2014 Facility [Member] Revolving Credit Facility [Member]	Feb. 07, 2014 2014 Facility [Member] Revolving Credit Facility [Member]	Jun. 27, 2014 2014 Facility [Member] Letter of Credit [Member]	Feb. 07, 2014 2012 Facility [Member] Revolving Credit Facility [Member]	Jun. 27, 2014 Committed and Uncommitted Letter of Credit Facility [Member] Letter of Credit [Member]
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity		$ 300,000,000	$ 50,000,000									$ 1,600,000,000		$ 1,205,000,000
Credit facility potential borrowing capacity												2,100,000,000
Direct borrowings on credit facility											800,000,000		10,500,000		342,400,000
Available borrowing capacity										800,000,000
Total issued letters of credit	$ 352,900,000
Number of tranches in revolving credit facility (in tranches)	2
Margin added to variable rate interest rate					1.00%	0.00%		1.50%	0.50%
Facility fee percentage				0.10%			0.25%

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Basis of Presentation Variable Interest Entity (Policies)

9 Months Ended

Jun. 27, 2014

Accounting Policies [Abstract]

Accounting for Joint Ventures

As is common to the industry, we execute certain contracts jointly with third parties through various forms of joint ventures and consortiums. Although the joint ventures own and hold the contracts with the clients, the services required by the contracts are typically performed by us and our joint venture partners, or by other subcontractors under subcontracting agreements with the joint ventures. The assets of our joint ventures, therefore, consist almost entirely of cash and receivables (representing amounts due from clients), and the liabilities of our joint ventures consist almost entirely of amounts due to the joint venture partners (for services provided by the partners to the joint ventures under their individual subcontracts) and other subcontractors. In general, at any given time, the equity of our joint ventures represents the undistributed profits earned on contracts the joint ventures hold with clients. Very few of our joint ventures have employees. None of our joint ventures have third-party debt or credit facilities. Our joint ventures, therefore, are simply mechanisms used to deliver engineering and construction services to clients. Rarely do they, in and of themselves, present any risk of loss to us or to our partners separate from those that we would carry if we were performing the contract on our own. Under U.S. GAAP, our share of losses associated with the contracts held by the joint ventures, if and when they occur, has always been reflected in our Consolidated Financial Statements.

Certain of our joint ventures meet the definition of a "variable interest entity" ("VIE"). As defined in U.S. GAAP, a VIE is a legal entity in which equity investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack any one of the following three characteristics: (i) the power, through voting rights or similar rights, to direct the activities of a legal entity that most significantly impact the entity's economic performance; (ii) the obligation to absorb the expected losses of the legal entity; or (iii) the right to receive the expected residual returns of the legal entity. Accordingly, entities issuing consolidated financial statements (i.e., a "reporting entity") shall consolidate a VIE if the reporting entity has a "controlling financial interest" in the VIE, as demonstrated by the reporting entity having both (i) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance; and (ii) the right to receive benefits from the VIE that could potentially be significant to the VIE or the obligation to absorb losses of the VIE that could potentially be significant to the VIE.

In evaluating our VIEs for possible consolidation, we perform a qualitative analysis to determine whether or not we have a "controlling financial interest" in the VIE as defined by U.S. GAAP. We consolidate only those VIEs over which we have a controlling financial interest. For the Company’s unconsolidated joint ventures, we use the equity method of accounting. The Company does not currently participate in any significant VIEs in which it has a controlling financial interest.

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Disclosures About Defined Pension Benefit Obligations (Tables)

9 Months Ended

Jun. 27, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Schedule of Pension Plans' Net Benefit Obligation

The following table presents the components of net periodic benefit cost recognized in earnings during each of the three and nine months ended June 27, 2014 and June 28, 2013 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
Component:	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Service cost	$	10,529		$	10,876		$	31,401		$	32,895
Interest cost	20,270			17,242			60,221			52,331
Expected return on plan assets	(22,712		)	(19,917		)	(67,552		)	(60,374		)
Amortization of previously unrecognized items	4,941			5,223			14,617			15,849
Settlement Loss	142			197			422			598
Net periodic benefit cost	$	13,170		$	13,621		$	39,109		$	41,299

Defined Contribution Plans

The following table presents certain information regarding Company cash contributions to our pension plans for fiscal 2014 (in thousands):

Cash contributions made during the first nine months of fiscal 2014	$	49,354
Cash contributions we expect to make during the remainder of fiscal 2014	9,728
Total	$	59,082

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Commitments and Contingencies (Details) (USD $)		0 Months Ended
	Jun. 27, 2014 Natural Gas Explosion at ConAgra Foods Plant [Member] claim	Jan. 20, 2010 In Arbitration Litigation [Member] Clark County Nevada Against Jacobs Engineering Group, Inc. [Member]	Jan. 20, 2010 In Arbitration Litigation [Member] Clark County Nevada Against Jacobs Engineering Group, Inc. [Member] subsidiary
Loss Contingencies [Line Items]
Number of subsidiaries			2
Third party payment of litigation settlement and awards (more than $60 million)		$ 60,000,000
Number of unsettled personal injury claims remaining	1

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Net Earnings of the Group	$ 71,309	$ 112,089	$ 261,058	$ 323,701
Other Comprehensive Income (Loss):
Foreign currency translation adjustment	29,147	(14,828)	17,267	(38,964)
Gain (loss) on cash flow hedges	1,815	584	1,912	(54)
Change in pension liabilities	(20,160)	2,198	(29,308)	28,123
Other comprehensive income (loss) before taxes	10,802	(12,046)	(10,129)	(10,895)
Income Tax Benefit (Expense):
Foreign currency translation adjustments	0	0	3,250	0
Cash flow hedges	(525)	(211)	(646)	(13)
Change in pension liabilities	5,245	(758)	7,660	(7,910)
Income Tax Benefit (Expense)	4,720	(969)	10,264	(7,923)
Net Other Comprehensive (Loss) Income	15,522	(13,015)	135	(18,818)
Net Comprehensive Income of the Group	86,831	99,074	261,193	304,883
Net Comprehensive Income Attributable to Noncontrolling Interests	(6,467)	(3,218)	(19,024)	(11,419)
Net Comprehensive Income Attributable to Jacobs	$ 80,364	$ 95,856	$ 242,169	$ 293,464

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Receivables

9 Months Ended

Jun. 27, 2014

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Receivables

Receivables

The following table presents the components of "Receivables" appearing in the accompanying Consolidated Balance Sheets at June 27, 2014 and September 27, 2013 as well as certain other related information (in thousands):

	June 27, 2014		September 27, 2013
Components of receivables:
Amounts billed	$	1,350,511	$	1,389,278
Unbilled receivables and other	1,317,215		1,109,931
Retentions receivable	68,284		49,781
Total receivables, net	$	2,736,010	$	2,548,990
Other information about receivables:
Amounts due from the United States federal government,     included above, net of advanced billings	$	255,267	$	292,698
Claims receivable	$	72,249	$	25,237

Billed receivables consist of amounts invoiced to clients in accordance with the terms of our client contracts and are shown net of an allowance for doubtful accounts. We anticipate that substantially all of such billed amounts will be collected over the next twelve months.

Unbilled receivables and retentions receivable represent reimbursable costs and amounts earned and reimbursable under contracts in progress as of the respective balance sheet dates. Such amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones, or completion of the project. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months.

Claims receivable are included in "Receivables" in the accompanying Consolidated Balance Sheets and represent certain costs incurred on contracts to the extent it is probable that such claims will result in additional contract revenue and the amount of such additional revenue can be reliably estimated.

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Other Comprehensive Income (Tables)

9 Months Ended

Jun. 27, 2014

Equity [Abstract]

Reclassification out of Accumulated Other Comprehensive Income

The following table presents amounts reclassified from change in pension liabilities in other comprehensive income to direct cost of contracts and selling, general and administrative expenses in the Company's Consolidated Statements of Earnings for the three and nine months ended June 27, 2014 and June 28, 2013 related to the Company's defined benefit pension plans (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	June 27, 2014			June 28, 2013			June 27, 2014			June 28, 2013
Amortization of Defined Benefit Items:
Actuarial losses	$	(4,939	)	$	(4,321	)	$(14,613)			$(13,147)
Prior service cost	(28		)	10			(81		)	34
Total Before Income Tax	(4,967		)	(4,311		)	(14,694		)	(13,113		)
Income Tax Benefit	1,403			1,237			4,152			3,761
Total Reclassifications, After-tax	$	(3,564	)	$	(3,074	)	$	(10,542	)	$	(9,352	)

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Disclosures About Defined Pension Benefit Obligations (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Jun. 27, 2014	Jun. 28, 2013	Jun. 27, 2014	Jun. 28, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic pension costs	$ 13,170,000	$ 13,621,000	$ 39,109,000	$ 41,299,000
U.S. Pension Plan [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic pension costs	1,900,000	3,500,000	5,800,000	10,500,000
Amortization of previously unrecognized items	$ 0	$ 900,000	$ 100,000	$ 2,700,000

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Basis of Presentation Revenue Recognition Accounting Policies (Policies)

9 Months Ended

Jun. 27, 2014

Accounting Policies [Abstract]

Revenue Accounting for Contracts

In general, we recognize revenue at the time we provide services. Depending on the commercial terms of the contract, we recognize revenues either when costs are incurred, or using the percentage-of-completion method of accounting by relating contract costs incurred to date to the total estimated costs at completion. Contract losses are provided for in their entirety in the period they become known, without regard to the percentage-of-completion. For multiple contracts with a single customer we account for each contract separately. We also recognize as revenues, costs associated with claims and unapproved change orders to the extent it is probable that such claims and change orders will result in additional contract revenue, and the amount of such additional revenue can be reliably estimated. A significant portion of the Company's revenue is earned on cost reimbursable contracts. The percentage of revenues realized by the Company by type of contract during fiscal 2013 can be found in Note 1 of Notes to Consolidated Financial Statements included in our 2013 Form 10-K.

Certain cost-reimbursable contracts include incentive-fee arrangements. The incentive fees in such contracts can be based on a variety of factors but the most common are the achievement of target completion dates, target costs, and/or other performance criteria. Failure to meet these targets can result in unrealized incentive fees. We recognize incentive fees based on expected results using the percentage-of-completion method of accounting. As the contract progresses and more information becomes available, the estimate of the anticipated incentive fee that will be earned is revised as necessary. We bill incentive fees based on the terms and conditions of the individual contracts. In certain situations, we are allowed to bill a portion of the incentive fees over the performance period of the contract. In other situations, we are allowed to bill incentive fees only after the target criterion has been achieved. Incentive fees which have been recognized but not billed are included in Receivables in the accompanying Consolidated Balance Sheets.

Certain cost-reimbursable contracts with government customers as well as certain commercial clients provide that contract costs are subject to audit and adjustment. In this situation, revenues are recorded at the time services are performed based upon the amounts we expect to realize upon completion of the contracts. Revenues are not recognized for non-recoverable costs. In those situations where an audit indicates that we may have billed a client for costs not allowable under the terms of the contract, we estimate the amount of such nonbillable costs and adjust our revenues accordingly.

When we are directly responsible for subcontractor labor or third-party materials and equipment, we reflect the costs of such items in both revenues and costs. On those projects where the client elects to pay for such items directly and we have no associated responsibility for such items, these amounts are not reflected in either revenues or costs.