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Segment Information
6 Months Ended
Apr. 01, 2016
Segment Reporting [Abstract]  
Segment Information

Segment Information

During the second quarter of fiscal 2016, we reorganized our operating and reporting structure around four lines of business (“LOB”).  This reorganization is intended to better serve our global clients, leverage our workforce, help streamline operations, and provide enhanced growth opportunities.  The four global LOBs are: Petroleum & Chemicals, Buildings & Infrastructure, Aerospace & Technology, and Industrial. Previously, the Company operated its business as a single segment.

 

Under the new organization, each LOB has a president that reports directly to the Company's President & CEO (who is also the Company’s Chief Operating Decision maker, or “CODM”).  As part of the reorganization, the cost of the sales function, which had been managed centrally for many years, is now embedded in the new segments and report to the respective line of business presidents.  In addition, a portion of the costs of other support functions (e.g., finance, legal, human resources, and information technology) are allocated to each LOB using methodologies which, we believe, effectively attributes the cost of these support functions to the revenue-generating activities of the Company on a rational basis.  In addition, the cost of the Company’s cash incentive plan (“MIP”) and the expense associated with the Jacobs Engineering Group Inc. Stock Incentive Plan (“1999 SIP”) have likewise been charged to the LOBs except for those amounts determined to relate to the business as a whole (which amounts remain in corporate’s results of operations).

 

Financial information for each LOB is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources.  The Company does not track assets by LOB, nor does it provide such information to the CODM.

 

The CODM evaluates the operating performance of our LOBs using operating profit, which is defined as margin less “corporate charges” (e.g., the allocated amounts described above).  The Company incurs certain SG&A costs which relate to its business as a whole which are not allocated to the LOBs.

 

The following tables present total revenues, and operating profit for each reportable segment. Prior period information has been restated to reflect the current period presentation (in thousands).

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

April 1, 2016

 

 

March 27, 2015

 

 

April 1, 2016

 

 

March 27, 2015

 

Revenues from External Customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Petroleum & Chemicals

$

866,615

 

 

$

1,046,767

 

 

$

1,808,928

 

 

$

2,207,219

 

Aerospace & Technology

 

669,464

 

 

 

701,115

 

 

 

1,339,655

 

 

 

1,435,342

 

Buildings & Infrastructure

 

579,128

 

 

 

602,062

 

 

 

1,142,458

 

 

 

1,226,792

 

Industrial

 

666,556

 

 

 

553,388

 

 

 

1,338,656

 

 

 

1,220,984

 

Total

$

2,781,763

 

 

$

2,903,332

 

 

$

5,629,697

 

 

$

6,090,337

 

 

 

For the Three Months Ended

 

 

For the Six Months Ended

 

 

April 1, 2016

 

 

March 27, 2015

 

 

April 1, 2016

 

 

March 27, 2015

 

Operating Profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Petroleum & Chemicals

$

30,945

 

 

$

28,656

 

 

$

62,548

 

 

$

63,755

 

Aerospace & Technology

 

55,121

 

 

 

53,072

 

 

 

103,120

 

 

 

103,033

 

Buildings & Infrastructure

 

42,463

 

 

 

42,428

 

 

 

82,915

 

 

 

80,392

 

Industrial

 

12,417

 

 

 

47,877

 

 

 

39,772

 

 

 

76,850

 

Total Segment Operating Profit

 

140,946

 

 

 

172,033

 

 

 

288,355

 

 

 

324,030

 

Other Corporate Expenses

 

(18,797

)

 

 

(24,950

)

 

 

(38,373

)

 

 

(18,724

)

Restructuring Charges

 

(35,368

)

 

 

(14,038

)

 

 

(103,751

)

 

 

(14,038

)

Total Other Income (Expense)

 

3,675

 

 

 

(4,083

)

 

 

2,012

 

 

 

(7,611

)

Earnings Before Taxes

$

90,456

 

 

$

128,962

 

 

$

148,243

 

 

$

283,657

 

 

Included in “other corporate expenses” in the above table are costs and expenses which relate to general corporate activities as well as corporate-managed benefit and insurance programs.  Such costs and expenses include: (i) those elements of SG&A expenses relating to the business as a whole; (ii) those elements of the MIP and the 1999 SIP relating to corporate personnel whose other compensation costs are not allocated to the LOBs; (iii) the amortization of intangible assets acquired as part of purchased business combinations; (iv) the quarterly variances between the Company’s actual costs of certain of its self-insured integrated risk and employee benefit programs and amounts charged to the LOBs; and (v) certain adjustments relating to costs associated with the Company’s international defined benefit pension plans.  In addition, “other corporate expenses” will include adjustments to contract margins (both positive and negative) associated with projects where the adjustments have been assessed, in the opinion of management, not indicative of the performance of the related LOB and therefore should not be attributed to the LOB.