Reportable Segments

Beginning in fiscal 2018, we aligned our operations to better serve our clients and markets, resulting in two renamed reportable segments. Our GSG reportable segment primarily includes activities with U.S. government clients (federal, state and local) and all activities with development agencies worldwide. Our CIG reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies. This alignment allows us to capitalize on our growing market opportunities and enhance the development of high-end consulting and technical solutions to meet our growing client demand. We continue to report the results of the wind-down of our non-core construction activities in the RCM segment. Prior year amounts for reportable segments have been revised to conform to the current-year presentation.

Our reportable segments are described as follows:

GSG: GSG provides consulting and engineering services primarily to U.S. government clients (federal, state and local) and development agencies worldwide. GSG supports U.S. government civilian and defense agencies with services in water, environment, infrastructure, information technology, and emergency management services. GSG also provides engineering design services for municipal and commercial clients, especially in water infrastructure, solid waste, and high-end sustainable infrastructure designs. GSG also leads our support for development agencies worldwide, especially in the U.S., United Kingdom, and Australia.

CIG: CIG provides consulting and engineering services primarily to U.S. commercial clients and international clients, both commercial and government. CIG supports commercial clients across the Fortune 500, oil and gas, energy utilities, manufacturing, aerospace, and mining markets. CIG also provides infrastructure and related environmental and geotechnical services, testing, engineering and project management services to commercial and local government clients across Canada, in Asia-Pacific (primarily Australia and New Zealand), as well as Brazil and Chile. CIG also provides field construction management activities in the United States and Western Canada.

RCM: We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. The remaining backlog for RCM as of September 30, 2018 was immaterial as the related projects are substantially complete.

Management evaluates the performance of these reportable segments based upon their respective segment operating income before the effect of amortization expense related to acquisitions, and other unallocated corporate expenses. We account for inter-segment revenues and transfers as if they were to third parties; that is, by applying a negotiated fee onto the costs of the services performed. All significant intercompany balances and transactions are eliminated in consolidation. In fiscal 2016, the corporate segment operating losses included $19.5 million of acquisition and integration expenses.

The following tables set forth summarized financial information concerning our reportable segments:

Reportable Segments



	Fiscal Year Ended
	September 30, 2018			October 1, 2017			October 2, 2016
	(in thousands)
Revenue
GSG	$	1,694,871		$	1,487,611		$	1,289,506
CIG	1,323,142			1,326,020			1,297,209
RCM	14,199			18,207			52,150
Elimination of inter-segment revenue	(68,064		)	(78,478		)	(55,396		)
Total revenue	$	2,964,148		$	2,753,360		$	2,583,469
Income from operations
GSG	$	168,211		$	138,199		$	101,595
CIG	74,451			90,817			106,602
RCM	(4,573		)	(14,712		)	(11,834		)
Corporate ⁽¹⁾	(48,003		)	(30,962		)	(60,508		)
Total operating income	$	190,086		$	183,342		$	135,855

⁽¹⁾

Includes goodwill and intangible assets impairment charges, amortization of intangibles, other costs and other income not allocable to segments. The intangible asset amortization expense for fiscal 2018, 2017 and 2016 was $18.2 million, $22.8 million and $22.1 million, respectively. Corporate results also included income (loss) for fair value adjustments to contingent consideration liabilities of $(4.3) million, $6.9 million and $(2.8) million for fiscal 2018, 2017 and 2016, respectively. Fiscal 2016 also included $19.5 million of acquisition and integration related expenses recorded at Corporate.



	September 30, 2018		October 1, 2017
	(in thousands)
Total Assets
GSG	$	468,010	$	378,839
CIG	478,197		518,697
RCM	25,683		33,620
Corporate ⁽¹⁾	987,531		971,589
Total assets	$	1,959,421	$	1,902,745


⁽¹⁾	Corporate assets consist of intercompany eliminations and assets not allocated to reportable segments including goodwill, intangible assets, deferred income taxes and certain other assets.

Geographic Information



	Fiscal Year Ended
	September 30, 2018				October 1, 2017				October 2, 2016
	Revenue		Long-Lived Assets ⁽²⁾		Revenue		Long-Lived Assets ⁽²⁾		Revenue		Long-Lived Assets ⁽²⁾
United States	$	2,232,013	$	59,164	$	2,018,841	$	58,965	$	1,858,551	$	59,334
Foreign countries ⁽¹⁾	732,135		34,934		734,519		34,183		724,918		39,067


⁽¹⁾	Includes revenue generated from our foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients. Long-lived assets consist primarily of amounts from our Canadian operations.


⁽²⁾	Excludes goodwill and intangible assets.

Major Clients

Other than the U.S. federal government, we had no single client that accounted for more than 10% of our revenue. All of our segments generated revenue from all client sectors.

The following table presents our revenue by client sector:



	Fiscal Year Ended
	September 30, 2018		October 1, 2017		October 2, 2016
	(in thousands)
Client Sector
U.S. state and local government	$	469,231	$	353,062	$	310,740
U.S. federal government ⁽¹⁾	974,384		901,136		784,368
U.S commercial	788,398		764,643		763,443
International ⁽²⁾	732,135		734,519		724,918
Total	$	2,964,148	$	2,753,360	$	2,583,469


⁽¹⁾	Includes revenue generated under U.S. federal government contracts performed outside the United States.


⁽²⁾	Includes revenue generated from foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients.