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Joint Ventures and VIE's
6 Months Ended
Mar. 29, 2019
Equity Method Investments and Joint Ventures [Abstract]  
Joint Ventures and VIE's
Joint Ventures and VIEs
As is common to the industry, we execute certain contracts jointly with third parties through various forms of joint ventures. 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. Many of these joint ventures are formed for a specific project. The assets of our joint ventures generally consist almost entirely of cash and receivables (representing amounts due from clients), and the liabilities of our joint ventures generally 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. Many of the joint ventures are deemed to be variable interest entities (“VIE”) because they lack sufficient equity to finance the activities of the joint venture.
For consolidated joint ventures, the entire amount of the services performed, and the costs associated with these services, including the services provided by the other joint venture partners, are included in the Company's result of operations. Likewise, the entire amount of each of the assets and liabilities are included in the Company’s Consolidated Balance Sheets. For the consolidated VIEs, the carrying value of assets and liabilities was $135.7 million and $97.5 million, respectively, as of March 29, 2019 and $162.3 million and $86.1 million, respectively as of September 28, 2018. There are no consolidated VIEs that have debt or credit facilities.
Unconsolidated joint ventures are accounted for under proportionate consolidation or the equity method. Proportionate consolidation is used for joint ventures that include unincorporated legal entities and activities of the joint venture are construction-related. For those joint ventures accounted for under proportionate consolidation, only the Company’s pro rata share of assets, liabilities, revenue, and costs are included in the Company’s balance sheet and results of operations. For the proportionate consolidated VIEs, the carrying value of assets and liabilities was $83.8 million and $86.1 million as of March 29, 2019, respectively and $85.2 million and $75.9 million as of September 28, 2018, respectively. For those joint ventures accounted for under the equity method, the Company's investment balances for the joint venture are included in Other Noncurrent Assets: Miscellaneous on the balance sheet and the Company’s pro rata share of net income is included in revenue. In limited cases, there are basis differences between the equity in the joint venture and Jacobs' investment created when Jacobs purchased its share of the joint venture. These basis differences are amortized based on an internal allocation to underlying net assets, excluding allocations to goodwill.. As of March 29, 2019, the Company’s equity method investments exceeded its share of venture net assets by $74.7 million. Our investments in equity method joint ventures on the Consolidated Balance Sheets as of March 29, 2019 and September 28, 2018 were a net asset of $160.6 million and $148.4 million, respectively. During the three months ended March 29, 2019 and March 30, 2018, we recognized income from equity method joint ventures of $12.4 million and $19.6 million, respectively. During the six months ended March 29, 2019 and March 30, 2018, we recognized income from equity method joint ventures of $25.9 million and $27.2 million, respectively.
Accounts receivable from unconsolidated joint ventures accounted for under the equity method is $13.9 million and $11.1 million as of March 29, 2019 and September 28, 2018, respectively.