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 26, 2015

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, 2015: 123,798,755

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	17
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
	Item 4.	Controls and Procedures	25
PART II	OTHER INFORMATION
	Item 1.	Legal Proceedings	26
	Item 1A.	Risk Factors	26
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	26
	Item 4	Mine Safety Disclosure	26
	Item 6.	Exhibits	27
		SIGNATURES

Page 2

Part I - FINANCIAL INFORMATION

Item 1. Financial Statements.

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share information)

	June 26, 2015			September 26, 2014
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	553,561		$	732,647
Receivables	2,679,176			2,867,555
Deferred income taxes	158,861			169,893
Prepaid expenses and other	82,243			121,976
Total current assets	3,473,841			3,892,071
Property, Equipment and Improvements, Net	421,314			456,797
Other Noncurrent Assets:
Goodwill	3,033,786			3,026,349
Intangibles	382,966			440,192
Miscellaneous	647,154			638,250
Total other non-current assets	4,063,906			4,104,791
	$	7,959,061		$	8,453,659
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Notes payable	$	38,359		$	36,732
Accounts payable	510,748			622,875
Accrued liabilities	1,167,448			1,279,556
Billings in excess of costs	376,083			410,683
Total current liabilities	2,092,638			2,349,846
Long-term Debt	646,391			764,075
Other Deferred Liabilities	820,501			834,078
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—124,142,831 shares and 131,752,768 shares, respectively	124,143			131,753
Additional paid-in capital	1,135,943			1,173,858
Retained earnings	3,513,867			3,527,193
Accumulated other comprehensive loss	(420,966		)	(363,549		)
Total Jacobs stockholders’ equity	4,352,987			4,469,255
Noncontrolling interests	46,544			36,405
Total Group stockholders’ equity	4,399,531			4,505,660
	$	7,959,061		$	8,453,659

See the accompanying Notes to Consolidated Financial Statements.

Page 3

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

For the Three and Nine Months Ended June 26, 2015 and June 27, 2014

(In thousands, except per share information)

(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Revenues	$	2,907,541		$	3,231,791		$	8,997,878		$	9,476,715
Costs and Expenses:
Direct cost of contracts	(2,422,944		)	(2,670,052		)	(7,502,891		)	(7,944,731		)
Selling, general and administrative expenses	(384,163		)	(437,802		)	(1,103,286		)	(1,140,565		)
Operating Profit	100,434			123,937			391,701			391,419
Other Income (Expense):
Interest income	1,697			2,624			5,553			7,425
Interest expense	(5,509		)	(5,565		)	(15,374		)	(10,490		)
Gain on sale of intellectual property, net	—			—			—			12,147
Miscellaneous income (expense), net	566			(2,950		)	(1,034		)	(3,139		)
Total other income (expense), net	(3,246		)	(5,891		)	(10,855		)	5,943
Earnings Before Taxes	97,188			118,046			380,846			397,362
Income Tax Benefit (Expense)	120			(46,737		)	(89,233		)	(136,304		)
Net Earnings of the Group	97,308			71,309			291,613			261,058
Net Earnings Attributable to Noncontrolling Interests	(6,246		)	(6,467		)	(18,505		)	(19,024		)
Net Earnings Attributable to Jacobs	$	91,062		$	64,842		$	273,108		$	242,034
Net Earnings Per Share:
Basic	$	0.74		$	0.50		$	2.17		$	1.86
Diluted	$	0.73		$	0.49		$	2.15		$	1.83

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.

Page 4

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three and Nine Months Ended June 26, 2015 and June 27, 2014

(In thousands)

(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Net Earnings of the Group	$	97,308		$	71,309		$	291,613		$	261,058
Other Comprehensive Income (Loss):
Foreign currency translation adjustment	17,650			29,147			(69,041		)	17,267
Gain (loss) on cash flow hedges	3,071			1,815			(1,773		)	1,912
Change in pension liabilities	(15,035		)	(20,160		)	15,886			(29,308		)
Other comprehensive income (loss) before taxes	5,686			10,802			(54,928		)	(10,129		)
Income Tax Benefit (Expense):
Foreign currency translation adjustments	—			—			—			3,250
Cash flow hedges	(839		)	(525		)	425			(646		)
Change in pension liabilities	3,090			5,245			(2,913		)	7,660
Income Tax Benefit (Expense)	2,251			4,720			(2,488		)	10,264
Net Other Comprehensive Income (Loss)	7,937			15,522			(57,416		)	135
Net Comprehensive Income of the Group	105,245			86,831			234,197			261,193
Net Comprehensive Income Attributable to      Noncontrolling Interests	(6,246		)	(6,467		)	(18,505		)	(19,024		)
Net Comprehensive Income Attributable to Jacobs	$	98,999		$	80,364		$	215,692		$	242,169

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.

Page 5

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended June 26, 2015 and June 27, 2014 (In thousands) (Unaudited)
	June 26, 2015			June 27, 2014
Cash Flows from Operating Activities:
Net earnings attributable to the Group	$	291,613		$	261,058
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization:
Property, equipment and improvements	75,718			70,701
Intangible assets	38,090			35,329
Gain on sale of certain intellectual property	—			(12,147		)
Stock based compensation	32,925			32,546
Tax deficiency (benefit) from stock based compensation	(732		)	140
Equity in earnings of operating ventures, net	7,601			(7,065		)
Change in pension plan obligations	(4,357		)	(10,245		)
Change in deferred compensation plans	(2,858		)	(5,957		)
(Gains) losses on sales of assets, net	(198		)	1,595
Changes in certain assets and liabilities, excluding the effects of businesses acquired:
Receivables	149,640			171,861
Prepaid expenses and other current assets	39,987			20,065
Accounts payable	(94,553		)	(87,753		)
Accrued liabilities	(78,566		)	66,456
Billings in excess of costs	(7,208		)	(28,029		)
Income taxes	(54,442		)	(5,225		)
Deferred income taxes	3,770			(12,493		)
Other deferred liabilities	(11,933		)	7,058
Change in long-term receivables	—			2,828
Long-term insurance prepayment	—			(17,602		)
Other, net	2,256			2,092
Net cash provided by operating activities	386,753			485,213
Cash Flows from Investing Activities:
Additions to property and equipment	(69,297		)	(92,033		)
Disposals of property and equipment	5,538			966
Purchases of investments	—			(25,539		)
Sales of investments	13			—
Acquisitions of businesses, net of cash acquired	—			(1,226,352		)
Net cash used for investing activities	(63,746		)	(1,342,958		)

Page 6

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended June 26, 2015 and June 27, 2014 (In thousands) (Unaudited) (Continued)
	June 26, 2015			June 27, 2014
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	1,214,548			669,681
Repayments of long-term borrowings	(1,291,029		)	(302,386		)
Proceeds from short-term borrowings	333,156			174,374
Repayments of short-term borrowings	(329,416		)	(189,490		)
Proceeds from issuances of common stock	25,056			34,175
Common stock repurchases	(372,944		)	—
Tax (deficiency) benefit from stock based compensation	732			(140		)
Distributions to noncontrolling interests	(7,230		)	(6,043		)
Net cash provided by (used for) financing activities	(427,127		)	380,171
Effect of Exchange Rate Changes	(74,966		)	(6,218		)
Net Decrease in Cash and Cash Equivalents	(179,086		)	(483,792		)
Cash and Cash Equivalents at the Beginning of the Period	732,647			1,256,405
Cash and Cash Equivalents at the End of the Period	$	553,561		$	772,613

See the accompanying Notes to Consolidated Financial Statements.

Page 7

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

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 26, 2014 ("2014 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 2014 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 26, 2015, and for the three and nine month periods ended June 26, 2015 and June 27, 2014.

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—Definitions of Notes to Consolidated Financial Statements included in our 2014 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—Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2014 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 26, 2015

(continued)

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

Please refer to Note 2—Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2014 Form 10-K for a more complete discussion of the various items 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 No. 2014-09—Revenue from Contracts with Customers. The new guidance provided by ASU 2014-09 is intended to remove inconsistencies and perceived weaknesses in the existing revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability, provide more useful information and simplify the preparation of financial statements. ASU 2014-09 was initially effective for annual and interim reporting periods beginning after December 15, 2016. On July 9, 2015 the FASB approved a one year deferral of the effective date of this standard. The revised effective date for the standard is for annual reporting periods beginning after December 15, 2017 and interim periods therein. The FASB also approved changes allowing for early adoption of the standard as of the original effective date. The Company continues to evaluate the impact that the new guidance may have on the consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03—Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 was issued to simplify the presentation of debt issuance costs by requiring such costs to be presented as a deduction from the corresponding debt liability. Through this ASU, the FASB intends to make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this ASU will have a material effect on its consolidated financial statements.

In May 2015, the FASB issued Accounting Standards Update 2015-07—Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by ASC 820—Fair Value Measurement. Disclosures about investments in certain entities that calculate net asset value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for entities (other than public business entities) for fiscal years beginning after December 15, 2016, with retrospective application to all periods presented. Early application is permitted. The Company is evaluating the impact of the ASU, but does not expect the impacts to be material to its consolidated financial statements.

Business Combinations

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, from the SKM shareholders. The Company purchased SKM 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 acquisition agreement includes customary representations, warranties, and indemnities supported by an escrow account.

During the first quarter of fiscal 2015, we completed the final purchase price allocation of SKM. The Company recorded a number of adjustments affecting, among other things, the balance sheet position of several major projects; the estimated liabilities relating to acquired professional liability exposures; and other adjustments.

Page 9

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

(continued)

The following table presents the final purchase price allocation for SKM (in thousands):

Assets:
Cash and cash equivalents	$	152,051
Receivables and other current assets	371,331
Property and equipment, and other	71,630
Intangible assets	202,166
Total assets	797,178
Liabilities:
Current liabilities	351,351
Deferred tax liability	72,656
Long-term liabilities	20,416
Total liabilities	444,423
Net identifiable assets acquired	352,755
Goodwill	866,919
Net assets acquired	$	1,219,674

The following table presents the values assigned to the acquired SKM intangible assets (in thousands):

Customer relationships / backlog	$	193,260
Trade name	8,906
	$	202,166

The 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.

During fiscal year 2014, the Company also acquired Federal Network Services LLC ("FNS", formerly a subsidiary of Verizon), Eagleton Engineering, LLC, FMHC Corporation, Stobbarts (Nuclear) Limited, Trompeter Enterprises, and MARMAC Field Services, Inc. The results of operations of these other acquisitions, individually or in the aggregate, were not material to the Company's consolidated results for fiscal 2014. During fiscal 2014, we also acquired an additional 15% interest in Jacobs, 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%.

Page 10

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

(continued)

Receivables

The following table presents the components of "Receivables" appearing in the accompanying Consolidated Balance Sheets at June 26, 2015 and September 26, 2014 as well as certain other related information (in thousands):

	June 26, 2015		September 26, 2014
Components of receivables:
Amounts billed	$	1,293,606	$	1,425,341
Unbilled receivables and other	1,307,540		1,368,482
Retentions receivable	78,030		73,732
Total receivables, net	$	2,679,176	$	2,867,555
Other information about receivables:
Amounts due from the United States federal government,     included above, net of advanced billings	$	335,352	$	324,928
Claims receivable	$	53,394	$	78,634

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 26, 2015 and September 26, 2014 consisted of the following (in thousands):

	June 26, 2015			September 26, 2014
Land	$	20,714		$	21,497
Buildings	124,704			128,584
Equipment	612,236			634,415
Leasehold improvements	279,307			287,814
Construction in progress	20,117			20,059
	1,057,078			1,092,369
Accumulated depreciation and amortization	(635,764		)	(635,572		)
	$	421,314		$	456,797

Long-term Debt

Jacobs and certain of its subsidiaries have 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 also provides an

Page 11

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

(continued)

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 Company's prior credit 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 26, 2015 was $646.4 million. The Company has issued $2.5 million in letters of credit under the 2014 Facility leaving $951.1 million of available borrowing capacity under the 2014 Facility at June 26, 2015. In addition, the Company had $281.8 million issued under separate, committed and uncommitted letter-of-credit facilities for total issued letters of credit of $284.3 million at June 26, 2015.

The 2014 Facility expires inFebruary 2020and 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 between1.0%and1.5%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 26, 2015.

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 2014 can be found in Note 1—Description of Business and Basis of Presentation of Notes to Consolidated Financial Statements included in our 2014 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.

Page 12

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

(continued)

The following table sets forth pass-through costs included in revenues for each of the three and nine months ended June 26, 2015 and June 27, 2014 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 26, 2015		June 27, 2014		June 26, 2015		June 27, 2014
Pass-through costs included in revenues	$	574,350	$	700,294	$	1,896,516	$	2,152,875

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 26, 2015 and June 27, 2014 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
Component:	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Service cost	$	9,988		$	10,529		$	26,824		$	31,401
Interest cost	19,245			20,270			52,006			60,221
Expected return on plan assets	(24,195		)	(22,712		)	(65,610		)	(67,552		)
Amortization of previously unrecognized items	6,362			4,941			16,798			14,617
Settlement loss	111			142			270			422
Net periodic benefit cost	$	11,511		$	13,170		$	30,288		$	39,109

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

Page 13

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

(continued)

cost accounting standards. The underfunded amount for this pension plan is included in "Other Noncurrent Assets" in the accompanying Consolidated Balance Sheets at June 26, 2015. Net periodic pension costs for this pension plan for the three and nine months ended June 26, 2015 were $1.5 million and $4.4 million, respectively, and three and nine months ended June 27, 2014 were $1.9 million and $5.8 million, respectively.

The following table presents certain information regarding Company cash contributions to our pension plans for fiscal 2015 (in thousands):

Cash contributions made during the first nine months of fiscal 2015	$	34,645
Cash contributions we expect to make during the remainder of fiscal 2015	9,967
Total	$	44,612

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 26, 2015 and June 27, 2014 related to the Company's defined benefit pension plans (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Amortization of Defined Benefit Items:
Actuarial losses	$	(6,448	)	$	(4,939	)	$(17,050)			$(14,613)
Prior service cost	26			(28		)	73			(81		)
Total Before Income Tax	(6,422		)	(4,967		)	(16,977		)	(14,694		)
Income Tax Benefit	1,766			1,403			4,729			4,152
Total Reclassifications, After-tax	$	(4,656	)	$	(3,564	)	$	(12,248	)	$	(10,542	)

Income Taxes

During the three months ended June 26, 2015, the Company completed the refinancing of certain international inter-company debt. The refinancing resulted in a one-time tax benefit of $23.1 million recorded in Income Tax Benefit (Expense) in the accompanying Consolidated Statements of Earnings.

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 26, 2015 and June 27, 2014; (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 26, 2015	June 27, 2014	June 26, 2015	June 27, 2014
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)	123,392	130,738	126,004	130,417
Effect of stock options and restricted stock	1,209	1,873	1,235	2,043
Denominator used to compute diluted EPS	124,601	132,611	127,239	132,460
Antidilutive stock options and restricted stock	3,094	2,101	3,847	2,088
Shares of common stock issued from the exercise of stock options and the release of restricted stock	649	724	1,288	1,590

Page 14

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

(continued)

Share Repurchases

On August 19, 2014, the Company's Board of Directors authorized a share repurchase program of up to $500 million of the Company's common stock. The following table summarizes the activity under this program from the authorization date (in thousands, except per-share amounts):

Amount Authorized	Average Price Per Share (1)	Total Shares Retired	Shares Repurchased
$500,000	$45.0581	10,017	10,017

(1) Includes commissions paid and calculated as the average price per share since the repurchase

program authorization date.

Share repurchases may be executed through various means including, without limitation, open market transactions, privately negotiated transactions or otherwise. The share repurchase program does not obligate the Company to purchase any shares, and expires on August 19, 2017. The authorization for the share repurchase program may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. The timing of our share repurchases may depend upon market conditions, other uses of capital, and other factors.

On July 23, 2015, the Board of Directors approved a program to purchase up to an additional $500 million of the Company's common stock over the next three years. This approval is in addition to the $48.7 million of capacity remaining as of June 26, 2015 under the Company's August 2014 $500 million share repurchase authorization. The new share repurchase authorization is subject to the same general terms and conditions as the prior share repurchase authorization summarized above.

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.

Page 15

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED

June 26, 2015

(continued)

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 August 9, 2014, the Company received a Notice of Arbitration from Motiva Enterprises LLC. The arbitration is

pending in Houston, Texas before the International Institute for Conflict Prevention and Resolution. In 2006, Motiva contracted

with Bechtel-Jacobs CEP Port Arthur Joint Venture (“BJJV”), a joint venture between Bechtel Corporation and Jacobs

Engineering Group, Inc. to perform professional services in connection with the expansion project at the Motiva Port Arthur,

TX refinery. In the Notice of Arbitration, Motiva asserts various causes of action and alleges entitlement to equitable and

monetary relief in excess of $7 billion. BJJV has denied liability and is vigorously defending these claims. The arbitration hearing is expected to occur in the fall of 2016. The Company does not expect this matter to have a material adverse effect on its consolidated financial statements.

Page 16

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 2014 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 2014 Form 10-K;

• The Company’s fiscal 2014 audited consolidated financial statements and notes thereto included in our 2014 Form 10-K; and

• Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2014 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, which we believe to be reasonable, 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 2014 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.

The 2015 Restructuring

During the second quarter of fiscal 2015, the Company commenced a series of initiatives intended to improve operational efficiency, reduce costs, and better position itself to drive growth of the business in the future (the "2015 Restructuring"). Actions related to the 2015 Restructuring completed during the second and third quarters of fiscal 2015 include involuntary terminations, the abandonment of certain leased offices, combining operational organizations, and the co-location of employees into other existing offices. We are not exiting any service types or client end-markets. The Company's consolidated results of operations for the third quarter of fiscal 2015 include a $48.0 million pre-tax impact relating to costs associated with the 2015 Restructuring. The costs of the 2015 Restructuring are included in selling, general, and administrative expense in the accompanying Consolidated Statements of Earnings, net of a $4.4 million reduction in bonus plan expense. The Company expects to largely complete the 2015 Restructuring by the end of the first quarter of fiscal 2016. The following table summarizes the effects of the 2015 Restructuring on the Company's consolidated results of operations for the three and nine month periods ended June 26, 2015 (in thousands, except for earnings per share):

	Three Months Ended									Nine Months Ended
	June 26, 2015									June 26, 2015
	U.S. GAAP			Effects of 2015 Restructuring			Without 2015 Restructuring			U.S. GAAP			Effects of 2015 Restructuring			Without 2015 Restructuring
Consolidated pre-tax earnings (loss)	$	97,188		$	(43,622	)	$	140,810		$	380,846		$	(57,660	)	$	438,506
Tax (expense) benefit	120			13,521			(13,401		)	(89,233		)	17,943			(107,176		)
Net earnings of the Group	97,308			(30,101		)	127,409			291,613			(39,717		)	331,330
Non-controlling interests	(6,246		)	—			(6,246		)	(18,505		)	—			(18,505		)
Net earnings of Jacobs	$	91,062		$	(30,101	)	$	121,163		$	273,108		$	(39,717	)	$	312,825
Diluted earnings (loss) per share	$	0.73		$	(0.24	)	$	0.97		$	2.15		$	(0.31	)	$	2.46

Page 17

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

The 2015 Inter-company Debt Refinancing

During the third quarter of fiscal 2015, the Company completed the refinancing of certain international inter-company debt (the "2015 Inter-company Debt Refinancing"). The 2015 Inter-company Debt Refinancing resulted in a one-time tax benefit of $23.1 million, or $0.19 per share.

The 2014 Restructuring and Other Unusual Events Affecting Fiscal 2014

During the third quarter of fiscal 2014, the Company initiated the "2014 Restructuring". In recognition of the slowdown in several of the Company's clients' end markets, the Company implemented a series of initiatives which, much like the 2015 Restructuring, were intended to improve operational efficiency and reduce costs, and also to accelerate the integration of SKM.

In addition to the 2014 Restructuring and the acquisition of SKM, the Company's consolidated results of operations for fiscal 2014 were affected by the following discrete events:

• $6.8 million, or $0.05 per diluted share, increase to net earnings due to the favorable resolution of an international tax matter in the first quarter of fiscal 2014 ; as a result of these events, approximately $4.1 million of accrued interest expense was reversed;

• $6.4 million, or $0.05 per diluted share, increase to net earnings related to a gain on the sale of certain intellectual property in the second quarter of fiscal 2014 ;

• $22.7 million, or $0.18 per diluted share, decrease to net earnings relating to certain specific operational events at SKM and SKM transaction-related costs and expenses incurred during the first half of the fiscal year; and

• $22.3 million, or $0.16 per diluted share, decrease to net earnings due to lower margins associated with certain projects in Europe combined with unusual weather effects in the second quarter of fiscal 2014.

As used herein, the term "2014 Events" refers to the combined effects of both the 2014 Restructuring and the unusual events described above. Within this MD&A, the Company may disclose and discuss its results of operations before the effects of the 2015 Restructuring, the 2014 Events and/or certain other transactions and events described herein. 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. As used herein, the terms "adjusted earnings" and "adjusted net earnings" refer to the Company's GAAP earnings as adjusted to eliminate the effects of the 2014 Events (when used in reference to fiscal 2014 results of operations) and the 2015 Restructuring (when used in reference to fiscal 2015 results of operations).

Overview - Three and Nine Months Ended June 26, 2015

The Company's GAAP net earnings for the three months ended June 26, 2015increased by $26.2 million, or 40.4%, compared to the corresponding period last year. The Company's GAAP net earnings for the nine months ended June 26, 2015increased$31.1 million, or 12.8%, compared to the corresponding period last year. Included in net earnings for both the three and nine month periods ended June 26, 2015 is the 2015 Inter-company Debt Refinancing. Excluding the effects of the 2015 Restructuring and the 2014 Restructuring, the Company's adjusted net earnings for the three months ended June 26, 2015increased by $9.4 million, or 8.4%, compared to the corresponding period last year. Excluding the impacts of the 2015 Restructuring and the 2014 Events, the Company's adjusted net earnings for the nine months ended June 26, 2015decreased$8.0 million, or 2.5%, compared to the corresponding period last year.

The effects of lower prices of crude oil and certain commodities, including copper and iron ore, continue to present headwinds for clients operating in the Refining-Downstream, Oil & Gas-Upstream, and Mining and Minerals industries and markets. Our Infrastructure and National GovernmentPrograms groups continue to perform well. Actions taken pursuant to the 2015 Restructuring have begun to lower the Company's overall cost structure, which is contributing to higher earnings in the third quarter of fiscal 2015 and helping to offset the negative pressures we are experiencing in certain of our markets.

The Company's results for the nine months ended June 26, 2015 when compared to the corresponding period last year were positively impacted by (i) the SKM acquisition, which was included in the full nine months results of fiscal 2015 (39 weeks)compared to only 28 weeks for the corresponding period last year and, to a lesser degree, (ii) the other acquisitions completed during fiscal 2014 (described below). Also influencing the comparability of the Company's fiscal 2015 results of operations to fiscal 2014 were the 2015 Restructuring and the 2014 Events.

Page 18

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

The following table summarizes the effects of the 2014 Events on the Company's consolidated results of operations for the three 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
	U.S. GAAP			Effects of 2014 Restructuring			Without 2014 Restructuring			U.S. GAAP			Effects of 2014 Events			Without 2014 Events
Consolidated pre-tax earnings (loss)	$	118,046		$	(56,654	)	$	174,700		$	397,362		$	(104,865	)	$	502,227
Tax (expense) benefit	(46,737		)	9,702			(56,439		)	(136,304		)	26,112			(162,416		)
Net earnings of the Group	71,309			(46,952		)	118,261			261,058			(78,753		)	339,811
Non-controlling interests	(6,467		)	—			(6,467		)	(19,024		)	—			(19,024		)
Net earnings of Jacobs	$	64,842		$	(46,952	)	$	111,794		$	242,034		$	(78,753	)	$	320,787
Diluted earnings (loss) per share	$	0.49		$	(0.35	)	$	0.84		$	1.83		$	(0.59	)	$	2.42

Backlog at June 26, 2015 was $18.8 billion, and represents an increase of 1.8% over backlog at June 27, 2014. Backlog remains near record levels despite the negative effects on backlog stemming from foreign exchange. New prospects and new sales remain strong and the Company continues to have a positive outlook for many of the industry groups and markets in which our clients operate.

During the three and nine months ended June 26, 2015, the Company repurchased and retired 2.7 million and 8.5 million shares, respectively, of its common stock under its share repurchase program. Total cash spent for the shares repurchased during the three and nine months ended June 26, 2015 was $118.7 million and $372.9 million, respectively. Since program inception, the Company has repurchased and retired approximately 10 million shares of its common stock at a total cash cost of approximately $451.3 million.

Business Combinations Completed During Fiscal 2014

In December 2013, the Company acquired all of the outstanding equity interests in SKM. The acquisition of SKM is described in more detail under Notes to Consolidated Financial Statements, above, as well as on page 7 and beginning on page F-11 of our 2014 Form 10-K.

We also completed a number of other acquisitions during fiscal 2014 including Federal Network Services LLC ("FNS", formerly a subsidiary of Verizon); Eagleton Engineering, LLC; FMHC Corporation; Stobbarts (Nuclear) Limited; Trompeter Enterprises; and MARMAC Field Services, Inc. The results of operations of these other acquisitions were not material, individually or in the aggregate, to the Company's consolidated results of operations for fiscal 2014. During fiscal 2014, we also acquired an additional 15% interest in Jacobs, Zamel and Turbag Consulting Engineers Company ("ZATE"). This transaction brought the Company's ownership in ZATE to 75%.

Consistent with other business combinations we have completed in the past, we began integrating SKM and the other businesses we acquired last year into our existing operations almost immediately after each business was acquired. Accordingly, it is not practicable to provide complete financial information for fiscal 2015 on a stand-alone basis for any of the businesses we acquired last year.

Results of Operations

Net earnings for the third quarter of fiscal 2015 ended June 26, 2015increased$26.2 million, or 40.4%, to $91.1 million (or $0.73 per diluted share) from $64.8 million (or $0.49 per diluted share) for the corresponding period last year. For the nine months ended June 26, 2015, net earnings increased$31.1 million, or 12.8%, to $273.1 million (or per $2.15 diluted share) from $242.0 million (or $1.83 per diluted share) for the corresponding period last year. Included in net earnings for both the third quarter of fiscal 2015 and the nine months ended June 26, 2015 are the costs associated with the 2015 Restructuring and the tax benefit associated with the 2015 Inter-company Debt Refinancing discussed above. Included in the net earnings for the third quarter of fiscal 2014 were costs associated with the 2014 Restructuring. Included in the net earnings for the nine months ended June 27, 2014 are the costs associated with the 2014 Events. Excluding the effects of the 2015 Restructuring and the 2014 Restructuring, adjusted net earnings for the third quarter of fiscal 2015 ended June 26, 2015increased$9.4 million, or 8.4%, to $121.2 million (or $0.97 per diluted share) from $111.8 million (or $0.84 per diluted share) for the corresponding period last year. Excluding the effects of the 2015 Restructuring and the 2014 Events, adjusted net earnings for the nine months ended

Page 19

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

June 26, 2015decreased$8.0 million, or 2.5%, to $312.8 million (or $2.46 per diluted share) from $320.8 million (or $2.42 per diluted share) for the corresponding period last year.

Total revenues for the third quarter of fiscal 2015decreased by $324.3 million, or 10.0%, to $2.91 billion, from $3.23 billion for the third quarter of fiscal 2014. For the nine months ended June 26, 2015, total revenues decreased by $0.5 billion, or 5.1%, to $9.0 billion, from $9.5 billion for the corresponding period last year. The decreases in revenue were due primarily to the impact of changes in foreign exchange rates, reduced pass through revenues, and lower volumes in the Mining and Minerals, Refining - Downstream, Oil & Gas - Upstream, and the Chemicals and Polymers markets.

The Company's results of operations for the three and nine months ended June 26, 2015 were impacted by changes in exchange rates over the corresponding periods last year in Canada, Europe (the "Euro"), Australia, and the U.K.

The following table sets forth our revenues by the various types of services we provide for the three and nine months ended June 26, 2015 and June 27, 2014, respectively (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 26, 2015		June 27, 2014		June 26, 2015		June 27, 2014
Technical Professional Services Revenues:
Project Services	$	1,513,942	$	1,729,093	$	4,719,381	$	4,960,235
Process, Scientific, and Systems Consulting	284,847		164,002		874,000		477,358
Total Technical Professional Services Revenues	1,798,789		1,893,095		5,593,381		5,437,593
Field Services Revenues:
Construction	826,822		1,045,473		2,515,879		3,119,201
Operations and Maintenance ("O&M")	281,930		293,223		888,618		919,921
Total Field Services Revenues	1,108,752		1,338,696		3,404,497		4,039,122
Total Revenues	$	2,907,541	$	3,231,791	$	8,997,878	$	9,476,715

Project Services revenues for the three months ended June 26, 2015decreased$215.2 million, or 12.4%, from the corresponding period last year. Project Services revenues for the nine months ended June 26, 2015decreased$240.9 million, or 4.9%, from the corresponding period last year. These decreases in Project Services revenues were due primarily to the lower business volumes in the North American and U.K. Refining - Downstream and Chemicals and Polymers markets, driven principally by the recent decline in oil and other commodity prices, combined with the effects of the strengthening U.S. dollar.

Process, Scientific, and Systems Consulting revenues for the three months ended June 26, 2015increased$120.8 million, or 73.7%, from the corresponding period last year. Process, Scientific, and Systems Consulting revenues for the nine months ended June 26, 2015increased$396.6 million, or 83.1%, from the corresponding period last year. The increases were due primarily to the FNS acquisition completed during the fourth quarter of fiscal 2014. The revenues in this service type relate to science, engineering, and technical support services provided primarily to the U.S. federal government clients and its various agencies.

Construction revenues for the three months ended June 26, 2015decreased$218.7 million, or 20.9%, from the corresponding period last year. Construction revenues for the nine months ended June 26, 2015decreased$603.3 million, or 19.3%, from the corresponding period last year. The decreases are primarily due to the winding down of a U.S. project in the Mining and Minerals market along with lower volumes in the market overall.

Operations and Maintenance revenues for the three months ended June 26, 2015decreased$11.3 million, or 3.9%, from the corresponding period last year. Operations and Maintenance revenues for the nine months ended June 26, 2015decreased$31.3 million, or 3.4%, from the corresponding period last year. The decreases were primarily due to lower volume in the National Government Programs market.

Page 20

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 26, 2015 and June 27, 2014 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 26, 2015		June 27, 2014		June 26, 2015		June 27, 2014
National Government Programs	$	642,124	$	538,296	$	1,928,663	$	1,617,269
Chemicals and Polymers	547,915		773,153		1,858,147		2,202,097
Refining - Downstream	466,298		560,022		1,405,562		1,705,625
Infrastructure	388,711		352,422		1,168,384		1,000,189
Oil & Gas - Upstream	224,883		280,560		676,662		683,025
Buildings	223,305		215,965		691,266		617,129
Industrial and Other	204,396		158,149		563,090		558,631
Pharmaceuticals and Biotechnology	112,911		88,453		347,078		339,880
Mining and Minerals	96,998		264,771		359,026		752,870
	$	2,907,541	$	3,231,791	$	8,997,878	$	9,476,715

For the three months ended June 26, 2015, revenues from clients operating in the National Government Programs market increased$103.8 million, or 19.3%, to $642.1 million from $538.3 million for the corresponding period last year. For the nine months ended June 26, 2015, revenues increased$311.4 million, or 19.3%, to $1.9 billion from $1.6 billion for the corresponding period last year. The increases were due primarily to the FNS acquisition completed during the fourth quarter of fiscal 2014.

For the three months ended June 26, 2015, revenues from projects for clients operating in the Chemicals and Polymers industries decreased$225.2 million, or 29.1%, to $547.9 million from $773.2 million for the corresponding period last year. For the nine months ended June 26, 2015, revenues decreased$344.0 million, or 15.6%, to $1.9 billion from $2.2 billion for the corresponding period last year. The decreases in revenues were due primarily to the normal winding-down and completion of certain projects in the U.S, the U.K, and Europe. Although we continue to receive new awards for FEED (front-end engineering design) and pre-FEED services, larger integrated oil companies continue to re-evaluate their investment opportunities considering current oil prices. We also have long-term relationships with numerous chemical companies around the world, and we continue to believe this industry group will provide strong growth opportunities in the long-term. The acquisition of SKM strengthened our capabilities for customers operating in this market as evidenced by a significant professional services contract we were awarded for what will be the largest chlorine dioxide plant in the world, located in Asia.

For the three months ended June 26, 2015, revenues from clients operating in the Refining - Downstream market decreased$93.7 million, or 16.7%, to $466.3 million from $560.0 million for the corresponding period last year. For the nine months ended June 26, 2015, revenues decreased$300.1 million, or 17.6%, to $1.4 billion from $1.7 billion for the corresponding period last year. The decreases occurred within our operations in Canada, Europe, and the U.K.

For the three months ended June 26, 2015, revenues from clients operating in the Infrastructure market increased$36.3 million, or 10.3%, to $388.7 million from $352.4 million for the corresponding period last year. For the nine months ended June 26, 2015, revenues increased$168.2 million, or 16.8%, to $1.2 billion from $1.0 billion for the corresponding period last year. The increases were due primarily to increased activity in the U.K., the U.S., and Australia. We believe market conditions may continue to improve within this industry group, particularly for transportation, water, and certain other projects around the globe (although there is higher uncertainty in U.S. federal funding for certain highway projects). One example is the Asset Management Programme (AMP6) cycle in the U.K., where we provide a full range of professional services, including regulatory strategic consultancy, engineering, project support and asset maintenance.

For the three months ended June 26, 2015, revenues on projects for clients operating in the Oil & Gas-Upstream market decreased$55.7 million, or 19.8%, to $224.9 million from $280.6 million for the corresponding period last year. For the nine months ended June 26, 2015, revenues decreased$6.4 million, or 0.9%, to $676.7 million from $683.0 million for the corresponding period last year. The Company believes that the recent decline in crude oil prices has dampened our client's near-term capital spending plans. As a result, we see certain clients deploying more of their capital budgets to sustaining capital-type programs (small-cap projects and maintenance-driven work), an area where the Company is strong.

Page 21

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

For the three months ended June 26, 2015, revenues from clients operating in the Buildings market increased$7.3 million, or 3.4%, to $223.3 million from $216.0 million for the corresponding period last year. For the nine months ended June 26, 2015, revenues increased$74.1 million, or 12.0%, to $691.3 million from $617.1 million for the corresponding period last year. We saw growth globally with health care, higher education, mission critical, and certain other technically complex buildings and facilities supported by the acquisition of SKM. We view the Buildings market as improving as our business in this industry group continues to shift towards projects for clients in the private sector.

For the three months ended June 26, 2015, revenues from clients operating in the Mining and Minerals market decreased$167.8 million, or 63.4%, to $97.0 million from $264.8 million for the corresponding period last year. For the nine months ended June 26, 2015, revenues decreased$393.8 million, or 52.3%, to $359.0 million from $752.9 million for the corresponding period last year. The decreases in revenues in the fiscal 2015 periods were due to the winding down of several projects in North and South America and Australia without significant new work being added. Globally, continuing pressure on commodity prices have caused our clients in these industries to behave more conservatively when it comes to new spend. It is possible that this situation may continue for the foreseeable future. Accordingly, the Company is refocusing and reallocating it's resources onto brownfield and sustaining capital-type projects. Longer-term, we believe we are well positioned to realize incremental business when the current pricing environment improves.

Direct costs of contracts for the third quarter of fiscal 2015decreased$247.1 million, or 9.3%, to $2.4 billion from $2.7 billion for the corresponding period last year. Direct costs of contracts for the nine months ended June 26, 2015decreased$0.4 billion, or 5.6%, to $7.5 billion from $7.9 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 2015decreased$125.9 million, or 18.0%, to $574.4 million from $700.3 million for the corresponding period last year. Pass-through costs for the nine months ended June 26, 2015decreased$256.4 million, or 11.9%, to $1.9 billion from $2.2 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. The change in pass-through costs for the three and none months ended June 26, 2015 when compared to the corresponding periods last year is due primarily to the decline in our field services activity.

As a percentage of revenues, direct costs of contracts for the three and nine months ended June 26, 2015 was 83.3% and 83.4%, respectively. This compares to 82.6% and 83.8% for the three and nine months ended June 27, 2014, 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.

Selling, general and administrative ("SG&A") expenses for the third quarter of fiscal 2015decreased$53.6 million, or 12.3%, to $384.2 million from $437.8 million for the corresponding period last year. SG&A expenses for the nine months ended June 26, 2015decreased$37.3 million, or 3.3%, to $1.10 billion from $1.14 billion for the corresponding period last year. The decrease for the three and nine months periods as compared to the prior year was due primarily to lower costs stemming from the 2014 Restructuring, which were partially offset by increased costs related to the 2015 Restructuring. Excluding the impact of the 2015 Restructuring and the 2014 Restructuring, adjusted SG&A expenses for the third quarter of fiscal 2015decreased$40.6 million, or 10.7%, to $340.5 million from $381.1 million for the corresponding period last year. Excluding the effects of the 2015 Restructuring and the 2014 Events, adjusted SG&A expenses for the nine months ended June 26, 2015decreased$21.8 million, or 2.0%, to $1.05 billion from $1.07 billion for the corresponding period last year.

Page 22

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

Net interest expense for the three and nine months ended June 26, 2015 was $3.8 million and $9.8 million, respectively as compared to $2.9 million and $3.1 million for the corresponding period last year. Included in net interest expense for the nine months ended June 27, 2014 was the reversal of $4.1 million of accrued interest expense recorded in connection with income tax liabilities relating to certain contested international tax matters which were favorably resolved during the first quarter of fiscal 2014. Adjusting for this reversal of expense, net interest expense for the nine months ended June 27, 2014 was $7.2 million.

The Company's effective income tax rate for the third quarter ended June 26, 2015declined to (0.1%) from 39.6% for the corresponding period last year. The Company's effective income tax rate for the nine months ended June 26, 2015declined to 23.4% from 34.3% for the corresponding period in fiscal 2014. The decrease in the tax rates for both the three and nine months ended June 26, 2015 as compared to the corresponding periods last year was primarily the result of the $23.1 million, or $0.19 per share, tax benefit related to the 2015 Inter-company Debt Refinancing discussed earlier. Also contributing to the decrease in the tax rate for the nine months ended June 26, 2015 when compared to the corresponding period last year were the benefits realized by other, individually insignificant discrete and non-discrete items realized in the third quarter of fiscal 2015.

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 26, 2015 and June 27, 2014 (in millions):

	June 26, 2015		June 27, 2014
Technical professional services	$	12,189.2	$	12,324.2
Field services	6,624.0		6,163.0
Total	$	18,813.2	$	18,487.2

Our backlog increased$0.3 billion, or 1.8%, to $18.8 billion at June 26, 2015 from $18.5 billion at June 27, 2014. Backlog at June 26, 2015 includes new awards from clients operating in many of the industry groups and markets we serve, and in particular the Chemicals, Infrastructure, and National Governments Programs industry groups and markets. Backlog remains near record levels despite the negative effects on backlog stemming from foreign exchange.

Liquidity and Capital Resources

At June 26, 2015, our principal sources of liquidity consisted of $553.6 million of cash and cash equivalents and $951.1 million of available borrowing capacity under our $1.6 billion revolving credit facility (the "2014 Facility"; refer to the Note Long-term Debt in Notes to Consolidated Financial Statements appearing under Part 1 - Item 1 of this Quarterly Report on Form 10-Q). We finance much of our operations and growth through cash generated by our operations.

During the nine months ended June 26, 2015, our cash and cash equivalents decreased by $179.1 million from $732.6 million at September 26, 2014 to $553.6 million at June 26, 2015. This compares to a net decrease of $483.8 million of cash and cash equivalents during the nine months ended June 27, 2014.

Page 23

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

The three most significant factors contributing to the difference in the Company's consolidated cash flows during the nine months ended June 26, 2015 as compared to the corresponding period last year are: (i) the $1.2 billion reduction in cash used to acquire businesses (the Company completed no business acquisitions during the nine months ended June 26, 2015), partially off-set by (ii) $443.8 million of additional cash used during fiscal 2015 to pay-down the Company's long-term debt and (iii) $372.9 million of cash used during fiscal 2015 to repurchase shares of the Company's common stock.

Our operations provided net cash inflows of $386.8 million during the nine months ended June 26, 2015. This compares to net cash inflows of $485.2 million for the corresponding period last year. The $98.5 milliondecrease in cash flows from operating activities during the nine months ended June 26, 2015 as compared to the corresponding period last year was due primarily to a $182.5 milliondecrease in cash generated from changes within our working capital accounts (discussed below) offset in part by an increase in net earnings.

With respect to the Company's working capital accounts, the Company's cash flows from operations are greatly affected by the cost-plus nature of our customer contracts. 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 $182.5 milliondecrease in cash flows relating to our working capital accounts is not indicative of any known trend within our operations and was due primarily to the timing of cash receipts and payments within our working capital accounts.

Also contributing to the decrease in cash flows relating to our working capital accounts were the fiscal 2015 payments of liabilities accrued as part of the 2014 Restructuring and the timing of income tax payments in the U.S. and Europe.

With respect to the Company's trade accounts receivable, we believe, in general, that our credit risk is not significant in spite of the fact we provide services to clients in a number of countries outside the U.S. Our private sector customers include large, well-known, and well-established multi-national companies, and our government customers consist 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$63.7 million of cash and cash equivalents for investing activities during the nine months ended June 26, 2015 as compared to $1.3 billionused during the corresponding period last year. The decrease is due to the absence of business acquisitions for the for the nine months ended June 26, 2015 as compared to the corresponding period last year when the Company used $1.2 billion ($1.1 billion net of cash acquired) primarily for the acquisition of SKM.

Our financing activities resulted in net cash outflows of $427.1 million during the nine months ended June 26, 2015. This compares to net cash inflows of $380.2 million during the corresponding period last year. The $807.3 million in incremental cash outflows during fiscal 2015 as compared to the previous year was due primarily to (i) a $443.8 million increase in cash used to pay-off long-term debt during fiscal 2015, combined with (ii) $372.9 million used to repurchase shares of Company common stock (discussed in further detail in Part II, Item 2 of this Quarterly Report on Form 10-Q). Substantially all of the amounts borrowed during fiscal 2014 under our 2014 Facility was used to fund the Company's business acquisitions completed last year.

The Company had $553.6 million of cash and cash equivalents at June 26, 2015. Of this amount, approximately $156.1 million was held in the U.S. and $397.5 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 2014 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 $553.6 million in cash and cash equivalents at June 26, 2015, and our consolidated working capital position was $1.4 billion at that date. In addition, there was $951.1 million of borrowing capacity remaining under the 2014 Facility at June 26, 2015. 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.

Page 24

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

The Company had $284.3 million of letters of credit outstanding at June 26, 2015. Of this amount, $2.5 million was issued under the 2014 Facility and $281.8 million was issued under separate, committed and uncommitted letter-of-credit facilities.

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 Executive Chairman (principal executive officer) and Chief Financial Officer (principal 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 26, 2015, the end of the period covered by this Quarterly Report on Form 10-Q (the "Evaluation Date"). Based on that evaluation, the Executive Chairman (principal executive officer) and Chief Financial Officer (principal 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 26, 2015 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

Page 25

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

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 2014 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 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There were no sales of unregistered equity securities during the third quarter of fiscal 2015.

Share Repurchases

On August 19, 2014, the Board of Directors approved a program to repurchase up to $500 million of the Company's common stock over the next three years. Share repurchases may be executed through various means including, without limitation, open market transactions, privately negotiated transactions or otherwise. The share repurchase program does not oblige the Company to purchase any shares. The authorization for the share repurchase program may be terminated, increased, or decreased by the Company's Board of Directors in its discretion at any time. The timing of our share repurchases may depend upon market conditions, other uses of capital, and other factors.

A summary of repurchases of our common stock each fiscal month during the third quarter of fiscal 2015 is as follows (in thousands, except per-share amounts):

Period	Total Number of Shares Purchased	Average Price Paid per Share (1)		Total Numbers of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
March 28, 2015 through April 24, 2015	808,625	$	46.0456	808,625	$	130,159
April 25, 2015 through May 22, 2015	926,300	$	43.7023	926,300	89,678
May 23, 2015 through June 26, 2015	948,569	$	43.2444	948,569	48,658
Total	2,683,494	$	44.2465	2,683,494	$	48,658

(1) Includes commissions paid.

On July 23, 2015, the Board of Directors approved a program to purchase up to an additional $500 million of the Company's common stock over the next three years. This approval is in addition to the capacity remaining under the Company's August 2014 $500 million share repurchase authorization, which was $48.7 million as of June 26, 2015. The new share repurchase authorization is subject to the same general terms and conditions as the prior share repurchase authorization summarized above.

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.

Page 26

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES

Item 6. Exhibits

(a) Exhibits

10.1#	Form of Nonqualified Stock Option Agreement.
10.2#	Form of Restricted Stock Unit Award Agreement (Performance Shares - Net Earnings Growth).
31.1 –	Certification of Principal 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 Principal 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.

Page 27

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/ Kevin C. Berryman
	Kevin C. Berryman
	Executive Vice President
	and Chief Financial Officer
	(Principal Financial Officer)
Date:	July 30, 2015

Page 28

EX-10.1

JACOBS ENGINEERING GROUP INC.

NONQUALIFIED STOCK OPTION AGREEMENT

(1999 Stock Incentive Plan)

This Agreement is executed on ________ _____, 20__, by and between JACOBS ENGINEERING GROUP INC., a Delaware corporation (the “Company”), and (“Optionee”) pursuant to the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (the “Plan”). Unless the context clearly indicates otherwise, capitalized terms used in this Agreement, to the extent they are defined in the Plan, have the same meaning as set-forth in the Plan.

      1.    Stock Option

(a) The Company hereby grants to Optionee the option (the “Option”) to purchase up to ______ shares of Jacobs Common Stock at a purchase price of $__ per share, to be issued upon the exercise thereof in cumulative annual installments as follows:

     (i)    An installment of 25% of the Option shall become exercisable one year following the date upon which this Option is granted (the “Grant Date”), with additional installments of 25% becoming exercisable on each anniversary of the Grant Date so that the Option is fully exercisable at the end of four (4) years from the Grant Date.

     (ii)    No Option may be exercised in whole or in part prior to the one-year anniversary of the Grant Date.

     (iii)    No Option may be exercised in whole or in part after the expiration of ten years from the Grant Date.

(b) Schedule A to the Plan establishes the effects on an outstanding Option of the Optionee’s termination of employment, other changes of employment or employer status, death, Disability, Retirement, or a Change in Control, and is hereby incorporated by reference. Notwithstanding the provisions of Schedule A to the Plan, the provisions of Paragraph 3, below, shall apply to this Option.

     2.    Exercise of Option

(a) Each installment of this Option as set forth above may be exercised, in whole or in part, in one or more exercises, during the time periods stated above. This Option, or any exercisable portion thereof, may be exercised solely by delivery to the Company of all of the following prior to the time when this Option or exercisable portion thereof, becomes unexercisable under Paragraph 1:

     (i)    Notice in writing signed by Optionee or another person then entitled to exercise this Option or portion, stating that this Option or portion is being exercised; and

(ii)    Payment of the full purchase price of the Option. The purchase price may be paid in cash or, at the discretion of the Committee, by the delivery or constructive exchange of shares of Jacobs Common Stock that have been owned by the Optionee for at least six months prior to the exercise, or a combination of cash and such shares having a total value equal to the option exercise price. Any shares so exchanged or assigned shall be valued at their Fair Market Value, as defined in the Plan.

(iii)    If this Option, or any exercisable portion of this Option, is being exercised pursuant to Paragraph 4 hereof by any person or persons other than the Optionee, then proof, reasonably satisfactory to the Company, of the authority of such person or persons to exercise this Option or portion.

Jacobs Engineering Group Inc.

Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)

Page 2 of 5

(b) In no event may this Option be exercised in such a manner as to require the Company to issue fractional shares.

3.    Effect of Engaging in Detrimental Activity

(a) For purposes of this Paragraph 3, “Detrimental Activity” means activity that is determined by the Committee, in its sole and absolute discretion, to be detrimental to the interests of the Company or any of its Related Companies, including but not limited to situations where Optionee: (1) divulges trade secrets of the Company or any Related Company, proprietary data or other confidential information relating to the Company or any Related Company or to the business of the Company or any Related Company, (2) enters into employment with a competitor of the Company or any Related Company under circumstances suggesting that Optionee will be using unique or special knowledge gained as an employee of the Company or any Related Company to compete with the Company or any Related Company, (3) is convicted by a court of competent jurisdiction of any felony or of a crime involving moral turpitude, (4) uses information obtained during the course of his or her employment by the Company or any Related Company for his or her own purposes, such as for the solicitation of business or the employees of the Company or any Related Company, (5) is determined to have engaged (whether or not prior to termination due to Retirement) in either gross misconduct or criminal activity harmful to the Company or any Related Company, or (6) takes any action that harms the business interests, reputation, or goodwill of the Company and/or any of its subsidiaries or Related Companies.

(b) If the Optionee’s employment is terminated in a manner that results in the Optionee retaining an interest in the options granted hereunder beyond the date of termination, and if an allegation of Detrimental Activity by Optionee is made to the Committee, then the Committee may suspend the exercisability of this Option for up to two months from its receipt of such allegation to permit an investigation of the allegation.

(c) If the Committee, in its sole discretion, determines that the Optionee has engaged in Detrimental Activity, then all unexercised options granted hereunder shall expire forthwith.

4.    Data Privacy

Optionee understands that the Company and/or a Related Company may hold certain personal information about the Optionee, including, but not limited to, Optionee’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 Optionee’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan.

Optionee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of 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 Optionee’s participation in the Plan.

Optionee understands that Data will be transferred to the Company’s broker, administrative agents and such other stock plan service provider as may be selected by the Company which are assisting the Company with the implementation, administration and management of the Plan. Optionee understands that such recipients may be located in the United States or elsewhere, and that the country or countries in which such recipients reside or operate (e.g., the United States) may

Jacobs Engineering Group Inc.

Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)

Page 3 of 5

have different data privacy laws and protections than Optionee’s country. Optionee 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. Optionee understands that Data will be held only as long as is necessary to implement, administer and manage Optionee’s participation in the Plan.

5.    Withholding Taxes

Optionee acknowledges that, regardless of any action taken by the Company or Related Companies or, if different, Optionee's employer (the "Employer"), the ultimate liability for all income tax, social insurance, payroll tax, payment on account or other tax-related items related to Optionee's participation in the Plan and legally applicable to the Optionee or deemed by the Company, Related Company or the Employer in its discretion to be an appropriate charge to Optionee even if legally applicable to the Company, Related Company or the Employer (“Tax-Related Items”), is and remains Optionee's responsibility and may exceed the amount actually withheld by the Company, Related Company or the Employer. Optionee further acknowledges and agrees that the Company, Related Company and/or the Employer may, if it so determines, offset any Employer tax liabilities deemed applicable to Optionee by reducing the shares of Jacobs Common Stock otherwise deliverable to Optionee pursuant to this Agreement. Optionee further acknowledges that the Company, Related Company and/or the Employer (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including, but not limited to, the grant, vesting or exercise of the Option, the transfer or delivery of shares of Jacobs Common Stock upon exercise of the Option, and the subsequent sale of shares of Jacobs Common Stock acquired pursuant to such exercise; and (b) do not commit to and are under no obligation to structure the terms of any Award to reduce or eliminate Optionee’s liability for Tax-Related Items or achieve any particular tax result. Further, if Optionee is subject to Tax-Related Items in more than one jurisdiction between the date of grant and the date of any relevant taxable event, Optionee acknowledges that the Company, Related Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. The Company may refuse to issue or deliver any shares of Jacobs Common Stock to the Optionee until the obligation for any Tax-Related Items due in connection with the Award has been satisfied, which may be satisfied by one or a combination of the following:

(i) withholding from Optionee's wages/salary or other cash compensation paid to the Optionee by the Company, Related Company or the Employer; or

(ii) withholding from proceeds of the shares of Jacobs Common Stock acquired upon exercise of the Option either through a voluntary sale or through a mandatory sale arranged by the Company's broker (on Optionee's behalf pursuant to this authorization); or

(iii) withholding in Stock to be transferred upon exercise of the Option.

Under no circumstances can the Company be required to withhold from the shares of Jacobs Common Stock that would otherwise be delivered to Optionee upon exercise of the Option a number of shares having a total Fair Market Value that exceeds the amount of withholding taxes as determined by the Company.

Jacobs Engineering Group Inc.

Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)

Page 4 of 5

6.    Transferability of Options

The rights of the Optionee under this Agreement shall not be assignable or transferable except by will or by the laws of descent and distribution. The rights of the Optionee under this Agreement shall not be assignable or transferable pursuant to a qualified domestic relations order as defined in the Code or Title I of the Employee Retirement Income Security Act or the rules thereunder. During the lifetime of Optionee, this option shall be exercisable only by Optionee or, in the case of his or her Disability, by his personal representative.

After the death of Optionee, any exercisable portion of this Option may, prior to the time when such portion becomes unexercisable under the provisions of Paragraph 1(b), above, be exercised by the Optionee’s personal representative or by any person empowered to do so under court order, by will or the laws of descent and distribution (such personal representative or other person empowered to act under court order is hereinafter referred to as a “Third Party”). The Optionee acknowledges and agrees that the Company may delay any exercise of the options granted hereunder until it has received satisfactory proof of the Third Party’s right to exercise the options.

7.    No Extensions Beyond Original Expiration Date

Notwithstanding any suspension of an Option pursuant to Paragraph 3, or any delay in the exercise of an Option pursuant to Paragraph 4 or 5, no Option may be exercised after the expiration date set forth in Paragraph 1(a).

8.    Certain Conditions To Issue Of Shares

No shares may be issued upon the exercise of this Option if, in the opinion of counsel for the Company, all then applicable requirements of the Securities and Exchange Commission and any other regulatory agencies having jurisdiction and of any stock exchange upon which the shares of the Company may be listed are not fully met, and, as a condition of Optionee’s exercise of this Option,

Optionee shall take all such action as counsel may advise is necessary for Optionee to take to meet such requirements.

9.    Employment

The rights granted to Optionee under this Agreement are conditioned upon the agreement of Optionee to continue in the employ of the Company or of a Related Company for a period of at least one year after the date of this Agreement, and Optionee hereby so agrees and further agrees to render his services for such period for such reasonable compensation as the Company may determine.

Jacobs Engineering Group Inc.

Nonqualified Stock Option Agreement (1999 Stock Incentive Plan)

Page 5 of 5

10.    Miscellaneous Provisions

This Agreement is governed in all respects by the Plan, except as provided 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. Optionee shall have no rights as a shareholder with respect to shares covered by this Agreement until the issuance of such shares. The Company shall not be obligated to make any adjustment for dividends or other rights for which the record date is prior to the date the shares are issued under this Agreement. This Agreement shall impose no obligation upon Optionee to exercise this Option. Neither the grant nor award of an Incentive Award under the Plan constitutes an agreement of employment between the Optionee and the Company or a Related Company. The receipt of an Incentive Award does not constitute a right acquired by the recipient to any other form of compensation, or to any future benefit or compensation, or to participate in any other benefit plan or program sponsored by the Company or Related Company, or to receive additional Incentive Awards under the Plan in the future. This Agreement shall impose no obligation on the Company or any Related Company to employ Optionee for any period. This Agreement shall be construed, administered and enforced according to the laws of the State of California.

11.    Code Section 409A

It is intended that the Option granted pursuant to this Agreement shall not constitute a “deferral of compensation” within the meaning of Section 409A of the Code and, as a result, shall not be subject to the requirements of Section 409A. The Agreement is to be interpreted in a manner consistent with this intention. Notwithstanding any other provision in this Agreement, the Agreement may not be modified in a manner that would cause the Option to become subject to Section 409A of the Code.

12.    Certain Conditions To Issue Of Shares

By signing below or electronically accepting this Award, Optionee (1) agrees to the terms and conditions of this Agreement, and (2) confirms receipt of a copy of the Plan and all amendments and supplements thereto.

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

JACOBS ENGINEERING GROUP INC.

By:

Noel G. Watson, Executive Chairman

EX-10.2

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 2015 and ending on the last day of the Company's second quarter of fiscal 2016; 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 2015 and ending on the last day of the Company's second quarter of fiscal 2017, minus (B) the amount determined pursuant to paragraph 2(d)(1) above; plus

Restricted Stock Unit Agreement – Performance Shares – Net Earnings Growth

Page 2 of 7

3. An amount, 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 growth in the Company's Net Earnings over the period starting on the first day of the Company's third quarter of fiscal 2015 and ending on the last day of the Company's second quarter of fiscal 2018, 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 (“GAAP”) (A) as may be adjusted to eliminate the effects of (i) costs associated with restructuring activities, as determined in accordance with GAAP, regardless of whether the Company discloses publicly the amount of such restructuring costs or the fact that the Company engaged in restructuring activities during the periods restructuring costs were incurred; and (ii) gains or losses associated with discontinued operations, as determined in accordance with GAAP, but limited to the first reporting period an operation is determined to be discontinued and all subsequent periods (i.e., there will be no retroactive application of this adjustment); and (B) as adjusted for all gains or losses associated with events or transactions that the HR&C Committee has made a finding are unusual in nature, infrequently occurring and otherwise not indicative of the Company’s normal operations, and therefore, not indicative of the underlying Company performance. For purposes of this part (B), such events or transactions could include: (i) settlements of claims and litigation; (ii) disposals of operations including a disposition of a significant amount of the Company’s assets; (iii) losses on sales of investments; and (iv) changes in laws and/or regulations.”

(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”),

Restricted Stock Unit Agreement – Performance Shares – Net Earnings Growth

Page 3 of 7

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 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, 2016, the Net Earnings Growth Performance Multiplier will be 100%; and (2) if the Change in Control occurs upon or after March 31, 2016, 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

Restricted Stock Unit Agreement – Performance Shares – Net Earnings Growth

Page 4 of 7

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.

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

Restricted Stock Unit Agreement – Performance Shares – Net Earnings Growth

Page 5 of 7

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.

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

Restricted Stock Unit Agreement – Performance Shares – Net Earnings Growth

Page 6 of 7

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

Employee acknowledges that, regardless of any action taken by the Company or Related Companies or, if different, Employee’s employer (the “Employer”) the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Employee’s participation in the Plan and legally applicable to Employee or deemed by the Company, Related Company or the Employer in its discretion to be an appropriate charge to Employee even if legally applicable to the Company, Related Company or the Employer (“Tax-Related Items”), is and remains Employee’s responsibility and may exceed the amount actually withheld by the Company, Related Company or the Employer. Employee further acknowledges and agrees that the Company or Related Company and/or the Employer may, if it so determines, offset any Employer tax liabilities deemed applicable to Employee by reducing the shares of Jacobs Common Stock otherwise deliverable to Employee pursuant to this Agreement. Employee further acknowledges that the Company, Related Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the restricted stock units including, but not limited to, the grant, vesting or settlement of the restricted stock units, the subsequent sale of shares of Jacobs Common Stock acquired pursuant to such settlement; and (2) do not commit to and are under no obligation to structure the terms of the Award or any aspect of the restricted stock units to reduce or eliminate Employee’s liability for Tax-Related Items or achieve any particular tax result. Further, if Employee is subject to Tax-Related Items in more than one jurisdiction between the Award Date and the date of any relevant taxable or tax withholding event, as applicable, Employee acknowledges that the Company, Related Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. The Company may refuse to issue or deliver any shares of Jacobs Common Stock to the Employee until the obligation for any Tax-Related Items due in connection with the Award has been satisfied.

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 settlement of the Award a number of shares having a total Fair Market Value that exceeds the amount of withholding taxes as determined by the Company at the time the Award vests.

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.

Restricted Stock Unit Agreement – Performance Shares – Net Earnings Growth

Page 7 of 7

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 belowor electronically accepting this Award, 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:

Noel G. Watson, Executive Chairman

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

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

I, Noel G. Watson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 26, 2015 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/ Noel G. Watson

Noel G. Watson

Executive Chairman

July 30, 2015

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

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

I, Kevin C. Berryman, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 26, 2015 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/ Kevin C. Berryman

Kevin C. Berryman

Chief Financial Officer

July 30, 2015

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL 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 26, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Noel G. Watson, Executive Chairman of the Company (principal executive officer), 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/ Noel G. Watson

Noel G. Watson

Executive Chairman

July 30, 2015

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 26, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin C. Berryman, 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/ Kevin C. Berryman

Kevin C. Berryman

Executive Vice President

and Chief Financial officer

July 30, 2015

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 26, 2015.

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						$	—		No	No		14	5
Mine ID: 02-00144 1PL						$	—		No	No
Mine ID: 02-03131 1PL						$	—		No	No
Mine ID: 02-00137 1PL						$	—		No	No
Mine ID: 02-00150 1PL						$	—		No	No
Mine ID: 26-01962 1PL						$	—		No	No
Mine ID: 29-00708 1PL						$	—		No	No			2
Mine ID: 29-00762 1PL						$	—		No	No
Mine ID: 26-02755 1PL						$	—		No	No			9
Mine ID: 04-00743 Y713						$	—		No	No
Totals	—	—	—	—	—	$	—	—	No	No	—	14	16

Notes:

(1) Jacobs received zero MSHA citations during the quarter ended June 26, 2015.

(2) Jacobs successfully contested and removed the "S&S" designations on 2 MSHA citations during the quarter ended June 26, 2015.

XML

Earnings Per Share and Certain Related Information (Details) - USD ($) $ / shares in Units, shares in Thousands				3 Months Ended		9 Months Ended
		Jul. 23, 2015	Aug. 19, 2014	Jun. 26, 2015	Jun. 27, 2014	Jun. 26, 2015	Jun. 27, 2014
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)				123,392	130,738	126,004	130,417
Effect of stock options and restricted stock				1,209	1,873	1,235	2,043
Denominator used to compute diluted EPS				124,601	132,611	127,239	132,460
Antidilutive stock options and restricted stock				3,094	2,101	3,847	2,088
Shares of common stock issued from the exercise of stock options and the release of restricted stock				649	724	1,288	1,590
Share Repurchases
Amount authorized to be repurchased			$ 500,000,000
Average cost per share repurchased ($ per share)	[1]		$ 45.0581
Number of shares repurchased (in shares)			10,017
Subsequent Event
Share Repurchases
Amount authorized to be repurchased		$ 500,000,000
Period for stock repurchase program		3 years
Remaining authorized repurchase capacity		$ 48,700,000

[1] Includes commissions paid and calculated as the average price per share since the repurchaseprogram authorization date.

XML

Revenue Accounting for Contracts / Accounting for Joint Ventures (Subcontractor Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 26, 2015	Jun. 27, 2014
Revenue Accounting for Contracts / Accounting for Joint Ventures [Abstract]
Pass-through costs included in revenues	$ 574,350	$ 700,294	$ 1,896,516	$ 2,152,875

XML

Other Comprehensive Income (Tables)

9 Months Ended

Jun. 26, 2015

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 26, 2015 and June 27, 2014 related to the Company's defined benefit pension plans (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Amortization of Defined Benefit Items:
Actuarial losses	$	(6,448	)	$	(4,939	)	$(17,050)			$(14,613)
Prior service cost	26			(28		)	73			(81		)
Total Before Income Tax	(6,422		)	(4,967		)	(16,977		)	(14,694		)
Income Tax Benefit	1,766			1,403			4,729			4,152
Total Reclassifications, After-tax	$	(4,656	)	$	(3,564	)	$	(12,248	)	$	(10,542	)

XML

Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 26, 2015	Jun. 27, 2014
Amortization of Defined Benefit Items:
Earnings Before Taxes	$ 97,188	$ 118,046	$ 380,846	$ 397,362
Income Tax Benefit	120	(46,737)	(89,233)	(136,304)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment
Amortization of Defined Benefit Items:
Actuarial losses	(6,448)	(4,939)	(17,050)	(14,613)
Prior service cost	26	(28)	73	(81)
Earnings Before Taxes	(6,422)	(4,967)	(16,977)	(14,694)
Income Tax Benefit	1,766	1,403	4,729	4,152
Total Reclassifications, After-tax	$ (4,656)	$ (3,564)	$ (12,248)	$ (10,542)

XML

Business Combinations

9 Months Ended

Jun. 26, 2015

Business Combinations [Abstract]

Business Combinations

Business Combinations

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, from the SKM shareholders. The Company purchased SKM 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 acquisition agreement includes customary representations, warranties, and indemnities supported by an escrow account.

During the first quarter of fiscal 2015, we completed the final purchase price allocation of SKM. The Company recorded a number of adjustments affecting, among other things, the balance sheet position of several major projects; the estimated liabilities relating to acquired professional liability exposures; and other adjustments.

The following table presents the final purchase price allocation for SKM (in thousands):

Assets:
Cash and cash equivalents	$	152,051
Receivables and other current assets	371,331
Property and equipment, and other	71,630
Intangible assets	202,166
Total assets	797,178
Liabilities:
Current liabilities	351,351
Deferred tax liability	72,656
Long-term liabilities	20,416
Total liabilities	444,423
Net identifiable assets acquired	352,755
Goodwill	866,919
Net assets acquired	$	1,219,674

The following table presents the values assigned to the acquired SKM intangible assets (in thousands):

Customer relationships / backlog	$	193,260
Trade name	8,906
	$	202,166

The 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.

During fiscal year 2014, the Company also acquired Federal Network Services LLC ("FNS", formerly a subsidiary of Verizon), Eagleton Engineering, LLC, FMHC Corporation, Stobbarts (Nuclear) Limited, Trompeter Enterprises, and MARMAC Field Services, Inc. The results of operations of these other acquisitions, individually or in the aggregate, were not material to the Company's consolidated results for fiscal 2014. During fiscal 2014, we also acquired an additional 15% interest in Jacobs, 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%.

XML

Business Combinations (Intangibles) (Details) - Sinclair Knight Merz $ in Thousands	Dec. 26, 2014 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 202,166
Customer relationships / backlog
Business Acquisition [Line Items]
Intangible assets	193,260
Trade name
Business Acquisition [Line Items]
Intangible assets	$ 8,906

XML

Business Combinations (Allocation of Purchase Price) (Details) - USD ($) $ in Thousands	Jun. 26, 2015	Dec. 26, 2014	Sep. 26, 2014
Liabilities:
Goodwill	$ 3,033,786		$ 3,026,349
Sinclair Knight Merz
Assets:
Cash and cash equivalents		$ 152,051
Receivables and other current assets		371,331
Property and equipment, and other		71,630
Intangible assets		202,166
Total assets		797,178
Liabilities:
Current liabilities		351,351
Deferred tax liability		72,656
Long-term liabilities		20,416
Total liabilities		444,423
Net identifiable assets acquired		352,755
Goodwill		866,919
Net assets acquired		$ 1,219,674

XML

Receivables (Details) - USD ($) $ in Thousands	9 Months Ended
	Jun. 26, 2015	Sep. 26, 2014
Components of receivables:
Amounts billed	$ 1,293,606	$ 1,425,341
Unbilled receivables and other	1,307,540	1,368,482
Retentions receivable	78,030	73,732
Total receivables, net	2,679,176	2,867,555
Other information about receivables:
Amounts due from the United States federal government, included above, net of advanced billings	335,352	324,928
Claims receivable	$ 53,394	$ 78,634
Duration which unbilled amounts will be billed and collected over (duration)	12 months

XML

Property, Equipment and Improvements, Net (Details) - USD ($) $ in Thousands	Jun. 26, 2015	Sep. 26, 2014
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	$ 1,057,078	$ 1,092,369
Accumulated depreciation and amortization	(635,764)	(635,572)
Property, equipment and improvements, net	421,314	456,797
Land
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	20,714	21,497
Buildings
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	124,704	128,584
Equipment
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	612,236	634,415
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	279,307	287,814
Construction in progress
Property, Plant and Equipment [Line Items]
Property, equipment and improvements, gross	$ 20,117	$ 20,059

XML

New Accounting Standards

9 Months Ended

Jun. 26, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Standards

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 No. 2014-09—Revenue from Contracts with Customers. The new guidance provided by ASU 2014-09 is intended to remove inconsistencies and perceived weaknesses in the existing revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability, provide more useful information and simplify the preparation of financial statements. ASU 2014-09 was initially effective for annual and interim reporting periods beginning after December 15, 2016. On July 9, 2015 the FASB approved a one year deferral of the effective date of this standard. The revised effective date for the standard is for annual reporting periods beginning after December 15, 2017 and interim periods therein. The FASB also approved changes allowing for early adoption of the standard as of the original effective date. The Company continues to evaluate the impact that the new guidance may have on the consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03—Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 was issued to simplify the presentation of debt issuance costs by requiring such costs to be presented as a deduction from the corresponding debt liability. Through this ASU, the FASB intends to make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this ASU will have a material effect on its consolidated financial statements.

In May 2015, the FASB issued Accounting Standards Update 2015-07—Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by ASC 820—Fair Value Measurement. Disclosures about investments in certain entities that calculate net asset value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for entities (other than public business entities) for fiscal years beginning after December 15, 2016, with retrospective application to all periods presented. Early application is permitted. The Company is evaluating the impact of the ASU, but does not expect the impacts to be material to its consolidated financial statements.

XML

Long-term Debt (Revolving Credit Facility) (Details) - Jun. 26, 2015	USD ($) tranche
Line of Credit Facility [Line Items]
Total issued letters of credit	$ 284,300,000
Number of tranches in revolving credit facility (in tranches) | tranche	2
Letter of Credit
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 300,000,000
Subfacility of Swingline Loans
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 50,000,000
Minimum
Line of Credit Facility [Line Items]
Facility fee percentage	0.10%
Minimum | Eurocurrency Interest Rate
Line of Credit Facility [Line Items]
Margin added to variable rate interest rate (percentage)	1.00%
Minimum | Base Interest Rate
Line of Credit Facility [Line Items]
Margin added to variable rate interest rate (percentage)	0.00%
Maximum
Line of Credit Facility [Line Items]
Facility fee percentage	0.25%
Maximum | Eurocurrency Interest Rate
Line of Credit Facility [Line Items]
Margin added to variable rate interest rate (percentage)	1.50%
Maximum | Base Interest Rate
Line of Credit Facility [Line Items]
Margin added to variable rate interest rate (percentage)	0.50%
2014 Facility
Line of Credit Facility [Line Items]
Available borrowing capacity	$ 951,100,000
2014 Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	1,600,000,000
Credit facility potential borrowing capacity	2,100,000,000
Direct borrowings on credit facility	646,400,000
2014 Facility | Letter of Credit
Line of Credit Facility [Line Items]
Direct borrowings on credit facility	2,500,000
Committed and Uncommitted Letter of Credit Facility | Letter of Credit
Line of Credit Facility [Line Items]
Direct borrowings on credit facility	$ 281,800,000

XML

Commitments and Contingencies (Details) $ in Billions	Aug. 09, 2014 USD ($)
Pending Litigation | Motiva vs. Bechtel-Jacobs CEP Port Arthur Joint Venture
Loss Contingencies [Line Items]
Damages sought (more than)	$ 7

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 26, 2015	Sep. 26, 2014
Current Assets:
Cash and cash equivalents	$ 553,561	$ 732,647
Receivables	2,679,176	2,867,555
Deferred income taxes	158,861	169,893
Prepaid expenses and other	82,243	121,976
Total current assets	3,473,841	3,892,071
Property, Equipment and Improvements, Net	421,314	456,797
Other Noncurrent Assets:
Goodwill	3,033,786	3,026,349
Intangibles	382,966	440,192
Miscellaneous	647,154	638,250
Total other non-current assets	4,063,906	4,104,791
Assets	7,959,061	8,453,659
Current Liabilities:
Notes payable	38,359	36,732
Accounts payable	510,748	622,875
Accrued liabilities	1,167,448	1,279,556
Billings in excess of costs	376,083	410,683
Total current liabilities	2,092,638	2,349,846
Long-term Debt	646,391	764,075
Other Deferred Liabilities	$ 820,501	$ 834,078
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—124,142,831 shares and 131,752,768 shares, respectively	124,143	131,753
Additional paid-in capital	1,135,943	1,173,858
Retained earnings	3,513,867	3,527,193
Accumulated other comprehensive loss	(420,966)	(363,549)
Total Jacobs stockholders’ equity	4,352,987	4,469,255
Noncontrolling interests	46,544	36,405
Total Group stockholders’ equity	4,399,531	4,505,660
Liabilities and Stockholders' Equity, Total	$ 7,959,061	$ 8,453,659

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 26, 2015	Jun. 27, 2014
Cash Flows from Operating Activities:
Net earnings attributable to the Group	$ 291,613	$ 261,058
Depreciation and amortization:
Property, equipment and improvements	75,718	70,701
Intangible assets	38,090	35,329
Gain on sale of certain intellectual property	0	(12,147)
Stock based compensation	32,925	32,546
Tax deficiency (benefit) from stock based compensation	(732)	140
Equity in earnings of operating ventures, net	7,601	(7,065)
Change in pension plan obligations	(4,357)	(10,245)
Change in deferred compensation plans	(2,858)	(5,957)
(Gains) losses on sales of assets, net	(198)	1,595
Changes in certain assets and liabilities, excluding the effects of businesses acquired:
Receivables	149,640	171,861
Prepaid expenses and other current assets	39,987	20,065
Accounts payable	(94,553)	(87,753)
Accrued liabilities	(78,566)	66,456
Billings in excess of costs	(7,208)	(28,029)
Income taxes	(54,442)	(5,225)
Deferred income taxes	3,770	(12,493)
Other deferred liabilities	(11,933)	7,058
Change in long-term receivables	0	2,828
Long-term insurance prepayment	0	(17,602)
Other, net	2,256	2,092
Net cash provided by operating activities	386,753	485,213
Cash Flows from Investing Activities:
Additions to property and equipment	(69,297)	(92,033)
Disposals of property and equipment	5,538	966
Purchases of investments	0	(25,539)
Sales of investments	13	0
Acquisitions of businesses, net of cash acquired	0	(1,226,352)
Net cash used for investing activities	(63,746)	(1,342,958)
Cash Flows from Financing Activities:
Proceeds from long-term borrowings	1,214,548	669,681
Repayments of long-term borrowings	(1,291,029)	(302,386)
Proceeds from short-term borrowings	333,156	174,374
Repayments of short-term borrowings	(329,416)	(189,490)
Proceeds from issuances of common stock	25,056	34,175
Common stock repurchases	(372,944)	0
Tax (deficiency) benefit from stock based compensation	732	(140)
Distributions to noncontrolling interests	(7,230)	(6,043)
Net cash provided by (used for) financing activities	(427,127)	380,171
Effect of Exchange Rate Changes	(74,966)	(6,218)
Net Decrease in Cash and Cash Equivalents	(179,086)	(483,792)
Cash and Cash Equivalents at the Beginning of the Period	732,647	1,256,405
Cash and Cash Equivalents at the End of the Period	$ 553,561	$ 772,613

XML

Disclosures About Defined Pension Benefit Obligations (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 26, 2015	Jun. 27, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic pension costs	$ 11,511	$ 13,170	$ 30,288	$ 39,109
U.S. Pension Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic pension costs	$ 1,500	$ 1,900	$ 4,400	$ 5,800

XML

Property, Equipment and Improvements, Net (Tables)

9 Months Ended

Jun. 26, 2015

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Equipment and Improvements, Net in the accompanying Consolidated Balance Sheets at June 26, 2015 and September 26, 2014 consisted of the following (in thousands):

	June 26, 2015			September 26, 2014
Land	$	20,714		$	21,497
Buildings	124,704			128,584
Equipment	612,236			634,415
Leasehold improvements	279,307			287,814
Construction in progress	20,117			20,059
	1,057,078			1,092,369
Accumulated depreciation and amortization	(635,764		)	(635,572		)
	$	421,314		$	456,797

XML

Disclosures About Defined Pension Benefit Obligations (Defined Contribution Plans) (Details) $ in Thousands	9 Months Ended
	Jun. 26, 2015 USD ($)
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Cash contributions made during the first nine months of fiscal 2015	$ 34,645
Cash contributions we expect to make during the remainder of fiscal 2015	9,967
Total	$ 44,612

XML

Disclosures About Defined Pension Benefit Obligations (Tables)

9 Months Ended

Jun. 26, 2015

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 26, 2015 and June 27, 2014 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
Component:	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Service cost	$	9,988		$	10,529		$	26,824		$	31,401
Interest cost	19,245			20,270			52,006			60,221
Expected return on plan assets	(24,195		)	(22,712		)	(65,610		)	(67,552		)
Amortization of previously unrecognized items	6,362			4,941			16,798			14,617
Settlement loss	111			142			270			422
Net periodic benefit cost	$	11,511		$	13,170		$	30,288		$	39,109

Defined Contribution Plans

The following table presents certain information regarding Company cash contributions to our pension plans for fiscal 2015 (in thousands):

Cash contributions made during the first nine months of fiscal 2015	$	34,645
Cash contributions we expect to make during the remainder of fiscal 2015	9,967
Total	$	44,612

XML

Basis of Presentation

9 Months Ended

Jun. 26, 2015

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 26, 2014 ("2014 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 2014 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 26, 2015, and for the three and nine month periods ended June 26, 2015 and June 27, 2014.

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—Definitions of Notes to Consolidated Financial Statements included in our 2014 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—Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2014 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—Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2014 Form 10-K for a more complete discussion of the various items within the consolidated financial statements measured at fair value and the methods used to determine fair value.

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 26, 2015	Sep. 26, 2014
Statement of Financial Position [Abstract]
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)	124,142,831	131,752,768
Common stock, outstanding (in shares)	124,142,831	131,752,768

XML

Earnings Per Share and Certain Related Information

9 Months Ended

Jun. 26, 2015

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 26, 2015 and June 27, 2014; (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 26, 2015	June 27, 2014	June 26, 2015	June 27, 2014
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)	123,392	130,738	126,004	130,417
Effect of stock options and restricted stock	1,209	1,873	1,235	2,043
Denominator used to compute diluted EPS	124,601	132,611	127,239	132,460
Antidilutive stock options and restricted stock	3,094	2,101	3,847	2,088
Shares of common stock issued from the exercise of stock options and the release of restricted stock	649	724	1,288	1,590

Share Repurchases

On August 19, 2014, the Company's Board of Directors authorized a share repurchase program of up to $500 million of the Company's common stock. The following table summarizes the activity under this program from the authorization date (in thousands, except per-share amounts):

Amount Authorized	Average Price Per Share (1)	Total Shares Retired	Shares Repurchased
$500,000	$45.0581	10,017	10,017

(1) Includes commissions paid and calculated as the average price per share since the repurchase

program authorization date.

Share repurchases may be executed through various means including, without limitation, open market transactions, privately negotiated transactions or otherwise. The share repurchase program does not obligate the Company to purchase any shares, and expires on August 19, 2017. The authorization for the share repurchase program may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. The timing of our share repurchases may depend upon market conditions, other uses of capital, and other factors.

On July 23, 2015, the Board of Directors approved a program to purchase up to an additional $500 million of the Company's common stock over the next three years. This approval is in addition to the $48.7 million of capacity remaining as of June 26, 2015 under the Company's August 2014 $500 million share repurchase authorization. The new share repurchase authorization is subject to the same general terms and conditions as the prior share repurchase authorization summarized above.

XML

Document And Entity Information - shares	9 Months Ended
	Jun. 26, 2015	Jul. 29, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	JACOBS ENGINEERING GROUP INC /DE/
Trading Symbol	jec
Entity Central Index Key	0000052988
Current Fiscal Year End Date	--10-02
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 26, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		123,798,755

XML

Commitments and Contingencies

9 Months Ended

Jun. 26, 2015

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 August 9, 2014, the Company received a Notice of Arbitration from Motiva Enterprises LLC. The arbitration is

pending in Houston, Texas before the International Institute for Conflict Prevention and Resolution. In 2006, Motiva contracted

with Bechtel-Jacobs CEP Port Arthur Joint Venture (“BJJV”), a joint venture between Bechtel Corporation and Jacobs

Engineering Group, Inc. to perform professional services in connection with the expansion project at the Motiva Port Arthur,

TX refinery. In the Notice of Arbitration, Motiva asserts various causes of action and alleges entitlement to equitable and

monetary relief in excess of $7 billion. BJJV has denied liability and is vigorously defending these claims. The arbitration hearing is expected to occur in the fall of 2016. The Company does not expect this matter to have a material adverse effect on its consolidated financial statements.

XML

Consolidated Statements of Earnings - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 26, 2015	Jun. 27, 2014
Income Statement [Abstract]
Revenues	$ 2,907,541	$ 3,231,791	$ 8,997,878	$ 9,476,715
Costs and Expenses:
Direct cost of contracts	(2,422,944)	(2,670,052)	(7,502,891)	(7,944,731)
Selling, general and administrative expenses	(384,163)	(437,802)	(1,103,286)	(1,140,565)
Operating Profit	100,434	123,937	391,701	391,419
Other Income (Expense):
Interest income	1,697	2,624	5,553	7,425
Interest expense	(5,509)	(5,565)	(15,374)	(10,490)
Gain on sale of intellectual property, net	0	0	0	12,147
Miscellaneous income (expense), net	566	(2,950)	(1,034)	(3,139)
Total other income (expense), net	(3,246)	(5,891)	(10,855)	5,943
Earnings Before Taxes	97,188	118,046	380,846	397,362
Income Tax Benefit (Expense)	120	(46,737)	(89,233)	(136,304)
Net Earnings of the Group	97,308	71,309	291,613	261,058
Net Earnings Attributable to Noncontrolling Interests	(6,246)	(6,467)	(18,505)	(19,024)
Net Earnings Attributable to Jacobs	$ 91,062	$ 64,842	$ 273,108	$ 242,034
Net Earnings Per Share:
Basic (in dollars per share)	$ 0.74	$ 0.50	$ 2.17	$ 1.86
Diluted (in dollars per share)	$ 0.73	$ 0.49	$ 2.15	$ 1.83

XML

Long-term Debt

9 Months Ended

Jun. 26, 2015

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt

Jacobs and certain of its subsidiaries have 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 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 Company's prior credit 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 26, 2015 was $646.4 million. The Company has issued $2.5 million in letters of credit under the 2014 Facility leaving $951.1 million of available borrowing capacity under the 2014 Facility at June 26, 2015. In addition, the Company had $281.8 million issued under separate, committed and uncommitted letter-of-credit facilities for total issued letters of credit of $284.3 million at June 26, 2015.

The 2014 Facility expires inFebruary 2020and 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 between1.0%and1.5%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 26, 2015.

XML

Property, Equipment and Improvements, Net

9 Months Ended

Jun. 26, 2015

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 26, 2015 and September 26, 2014 consisted of the following (in thousands):

	June 26, 2015			September 26, 2014
Land	$	20,714		$	21,497
Buildings	124,704			128,584
Equipment	612,236			634,415
Leasehold improvements	279,307			287,814
Construction in progress	20,117			20,059
	1,057,078			1,092,369
Accumulated depreciation and amortization	(635,764		)	(635,572		)
	$	421,314		$	456,797

XML

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

9 Months Ended

Jun. 26, 2015

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 26, 2015 and June 27, 2014 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 26, 2015		June 27, 2014		June 26, 2015		June 27, 2014
Pass-through costs included in revenues	$	574,350	$	700,294	$	1,896,516	$	2,152,875

XML

Basis of Presentation (Policies)

9 Months Ended

Jun. 26, 2015

Basis of Presentation [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—Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2014 Form 10-K for a discussion of the significant estimates and assumptions affecting our consolidated financial statements.

New Accounting Pronouncements

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 No. 2014-09—Revenue from Contracts with Customers. The new guidance provided by ASU 2014-09 is intended to remove inconsistencies and perceived weaknesses in the existing revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability, provide more useful information and simplify the preparation of financial statements. ASU 2014-09 was initially effective for annual and interim reporting periods beginning after December 15, 2016. On July 9, 2015 the FASB approved a one year deferral of the effective date of this standard. The revised effective date for the standard is for annual reporting periods beginning after December 15, 2017 and interim periods therein. The FASB also approved changes allowing for early adoption of the standard as of the original effective date. The Company continues to evaluate the impact that the new guidance may have on the consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03—Simplifying the Presentation of Debt Issuance Costs. ASU 2015-03 was issued to simplify the presentation of debt issuance costs by requiring such costs to be presented as a deduction from the corresponding debt liability. Through this ASU, the FASB intends to make the presentation of debt issuance costs consistent with the presentation of debt discounts or premiums. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted. The Company does not believe the adoption of this ASU will have a material effect on its consolidated financial statements.

In May 2015, the FASB issued Accounting Standards Update 2015-07—Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share (or its Equivalent). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value practical expedient provided by ASC 820—Fair Value Measurement. Disclosures about investments in certain entities that calculate net asset value per share are limited under ASU 2015-07 to those investments for which the entity has elected to estimate the fair value using the net asset value practical expedient. ASU 2015-07 is effective for entities (other than public business entities) for fiscal years beginning after December 15, 2016, with retrospective application to all periods presented. Early application is permitted. The Company is evaluating the impact of the ASU, but does not expect the impacts to be material to its consolidated financial statements.

Revenue Recognition

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 2014 can be found in Note 1—Description of Business and Basis of Presentation of Notes to Consolidated Financial Statements included in our 2014 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.

Consolidation, Variable Interest Entity

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.

XML

Other Comprehensive Income

9 Months Ended

Jun. 26, 2015

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 26, 2015 and June 27, 2014 related to the Company's defined benefit pension plans (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Amortization of Defined Benefit Items:
Actuarial losses	$	(6,448	)	$	(4,939	)	$(17,050)			$(14,613)
Prior service cost	26			(28		)	73			(81		)
Total Before Income Tax	(6,422		)	(4,967		)	(16,977		)	(14,694		)
Income Tax Benefit	1,766			1,403			4,729			4,152
Total Reclassifications, After-tax	$	(4,656	)	$	(3,564	)	$	(12,248	)	$	(10,542	)

XML

Revenue Accounting for Contracts / Accounting for Joint Ventures

9 Months Ended

Jun. 26, 2015

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 2014 can be found in Note 1—Description of Business and Basis of Presentation of Notes to Consolidated Financial Statements included in our 2014 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 26, 2015 and June 27, 2014 (in thousands):

	For the Three Months Ended				For the Nine Months Ended
	June 26, 2015		June 27, 2014		June 26, 2015		June 27, 2014
Pass-through costs included in revenues	$	574,350	$	700,294	$	1,896,516	$	2,152,875

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.

XML

Disclosures About Defined Pension Benefit Obligations

9 Months Ended

Jun. 26, 2015

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 26, 2015 and June 27, 2014 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
Component:	June 26, 2015			June 27, 2014			June 26, 2015			June 27, 2014
Service cost	$	9,988		$	10,529		$	26,824		$	31,401
Interest cost	19,245			20,270			52,006			60,221
Expected return on plan assets	(24,195		)	(22,712		)	(65,610		)	(67,552		)
Amortization of previously unrecognized items	6,362			4,941			16,798			14,617
Settlement loss	111			142			270			422
Net periodic benefit cost	$	11,511		$	13,170		$	30,288		$	39,109

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 26, 2015. Net periodic pension costs for this pension plan for the three and nine months ended June 26, 2015 were $1.5 million and $4.4 million, respectively, and three and nine months ended June 27, 2014 were $1.9 million and $5.8 million, respectively.

The following table presents certain information regarding Company cash contributions to our pension plans for fiscal 2015 (in thousands):

Cash contributions made during the first nine months of fiscal 2015	$	34,645
Cash contributions we expect to make during the remainder of fiscal 2015	9,967
Total	$	44,612

XML

Income Taxes (Notes)

9 Months Ended

Jun. 26, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

During the three months ended June 26, 2015, the Company completed the refinancing of certain international inter-company debt. The refinancing resulted in a one-time tax benefit of $23.1 million recorded in Income Tax Benefit (Expense) in the accompanying Consolidated Statements of Earnings.

XML

Disclosures About Defined Pension Benefit Obligations (Schedule of Pension Plans' Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 26, 2015	Jun. 27, 2014
Component:
Service cost	$ 9,988	$ 10,529	$ 26,824	$ 31,401
Interest cost	19,245	20,270	52,006	60,221
Expected return on plan assets	(24,195)	(22,712)	(65,610)	(67,552)
Amortization of previously unrecognized items	6,362	4,941	16,798	14,617
Settlement loss	111	142	270	422
Net periodic benefit cost	$ 11,511	$ 13,170	$ 30,288	$ 39,109

XML

Receivables (Tables)

9 Months Ended

Jun. 26, 2015

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 26, 2015 and September 26, 2014 as well as certain other related information (in thousands):

	June 26, 2015		September 26, 2014
Components of receivables:
Amounts billed	$	1,293,606	$	1,425,341
Unbilled receivables and other	1,307,540		1,368,482
Retentions receivable	78,030		73,732
Total receivables, net	$	2,679,176	$	2,867,555
Other information about receivables:
Amounts due from the United States federal government,     included above, net of advanced billings	$	335,352	$	324,928
Claims receivable	$	53,394	$	78,634

XML

Earnings Per Share and Certain Related Information (Tables)

9 Months Ended

Jun. 26, 2015

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 26, 2015 and June 27, 2014; (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 26, 2015	June 27, 2014	June 26, 2015	June 27, 2014
Shares used to calculate EPS:
Weighted average shares outstanding (denominator used to compute basic EPS)	123,392	130,738	126,004	130,417
Effect of stock options and restricted stock	1,209	1,873	1,235	2,043
Denominator used to compute diluted EPS	124,601	132,611	127,239	132,460
Antidilutive stock options and restricted stock	3,094	2,101	3,847	2,088
Shares of common stock issued from the exercise of stock options and the release of restricted stock	649	724	1,288	1,590

Share Repurchases

The following table summarizes the activity under this program from the authorization date (in thousands, except per-share amounts):

Amount Authorized	Average Price Per Share (1)	Total Shares Retired	Shares Repurchased
$500,000	$45.0581	10,017	10,017

(1) Includes commissions paid and calculated as the average price per share since the repurchase

program authorization date.

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 26, 2015	Jun. 27, 2014	Jun. 26, 2015	Jun. 27, 2014
Statement of Comprehensive Income [Abstract]
Net Earnings of the Group	$ 97,308	$ 71,309	$ 291,613	$ 261,058
Other Comprehensive Income (Loss):
Foreign currency translation adjustment	17,650	29,147	(69,041)	17,267
Gain (loss) on cash flow hedges	3,071	1,815	(1,773)	1,912
Change in pension liabilities	(15,035)	(20,160)	15,886	(29,308)
Other comprehensive income (loss) before taxes	5,686	10,802	(54,928)	(10,129)
Income Tax Benefit (Expense):
Foreign currency translation adjustments	0	0	0	3,250
Cash flow hedges	(839)	(525)	425	(646)
Change in pension liabilities	3,090	5,245	(2,913)	7,660
Income Tax Benefit (Expense)	2,251	4,720	(2,488)	10,264
Net Other Comprehensive Income (Loss)	7,937	15,522	(57,416)	135
Net Comprehensive Income of the Group	105,245	86,831	234,197	261,193
Net Comprehensive Income Attributable to Noncontrolling Interests	(6,246)	(6,467)	(18,505)	(19,024)
Net Comprehensive Income Attributable to Jacobs	$ 98,999	$ 80,364	$ 215,692	$ 242,169

XML

Receivables

9 Months Ended

Jun. 26, 2015

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 26, 2015 and September 26, 2014 as well as certain other related information (in thousands):

	June 26, 2015		September 26, 2014
Components of receivables:
Amounts billed	$	1,293,606	$	1,425,341
Unbilled receivables and other	1,307,540		1,368,482
Retentions receivable	78,030		73,732
Total receivables, net	$	2,679,176	$	2,867,555
Other information about receivables:
Amounts due from the United States federal government,     included above, net of advanced billings	$	335,352	$	324,928
Claims receivable	$	53,394	$	78,634

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.

XML

Business Combinations (Details) - USD ($) $ in Billions		9 Months Ended
	Dec. 13, 2013	Jun. 26, 2015	Sep. 26, 2014
Sinclair Knight Merz
Business Acquisition [Line Items]
Payments to acquire business	$ 1.2
Zamel and Turbag Consulting Engineers Company (ZATE)
Business Acquisition [Line Items]
Total ownership (percent)			15.00%
Additional interest acquired (percent)			75.00%
Minimum | Sinclair Knight Merz
Business Acquisition [Line Items]
Useful life of intangibles (duration)		3 years
Maximum | Sinclair Knight Merz
Business Acquisition [Line Items]
Useful life of intangibles (duration)		12 years

XML

Income Taxes (Details) $ in Millions	3 Months Ended
	Jun. 26, 2015 USD ($)
Income Tax Disclosure [Abstract]
One-time tax benefit	$ 23.1

XML

Business Combinations (Tables)

9 Months Ended

Jun. 26, 2015

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table presents the final purchase price allocation for SKM (in thousands):

Assets:
Cash and cash equivalents	$	152,051
Receivables and other current assets	371,331
Property and equipment, and other	71,630
Intangible assets	202,166
Total assets	797,178
Liabilities:
Current liabilities	351,351
Deferred tax liability	72,656
Long-term liabilities	20,416
Total liabilities	444,423
Net identifiable assets acquired	352,755
Goodwill	866,919
Net assets acquired	$	1,219,674

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table presents the values assigned to the acquired SKM intangible assets (in thousands):

Customer relationships / backlog	$	193,260
Trade name	8,906
	$	202,166