Acquisitions (Tables)

6 Months Ended

Apr. 02, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below represents the preliminary purchase price allocation for RPS based on estimates, assumptions, valuations and other analyses as of January 23, 2023, that has not been finalized in order to make a definitive allocation. The purchase consideration, excluding the aforementioned forward contract gain, is allocated to the tangible and intangible assets, and liabilities of RPS based on their estimated fair values, with any excess purchase consideration allocated to goodwill as follows (in thousands):

	Amount
Cash and cash equivalents	$	32,093
Accounts receivable and contract assets	202,634
Prepaid expenses and other current assets	49,216
Income taxes receivables	1,999
Property and equipment	43,276
Right-of-use assets, operating leases	40,179
Intangible assets	206,186
Deferred income taxes	28,995
Other long-term assets	1,061
Total assets acquired	605,639
Accounts payable	$	(44,376)
Accrued compensation	(22,290)
Contract liabilities	(46,287)
Income tax payable	(7,083)
Short-term lease liabilities, operating leases	(13,477)
Other current liabilities	(124,851)
Long-term debt	(91,973)
Long-term lease liabilities, operating leases	(26,702)
Other long-term liabilities	(7,423)
Deferred tax liabilities	(55,965)
Total liabilities assumed	(440,427)
Fair value of net assets acquired	165,212
Goodwill	618,997
Total purchase consideration	$	784,209

Schedule of Acquired Finite-Lived Intangible Assets by Major Class

The following table summarizes the estimated fair values that were assigned to intangible assets at the acquisition date:

	Fair Value		Weighted-Average Estimated Useful Life
	(in thousands)		(in years)
Backlog	$	19,702	1.5
Trade names	17,843		3.0
Client relations	168,641		8.0
Total intangible assets acquired	$	206,186	6.9

Business Acquisition, Pro Forma Information

Following are the supplemental consolidated financial results of Tetra Tech and RPS on an unaudited pro forma basis, as if the RPS acquisition had been consummated as of the beginning of fiscal 2022 (in thousands):

	Three Months Ended				Six Months Ended
	April 2, 2023		April 3, 2022		April 2, 2023		April 3, 2022
Revenue	$	1,203,538	$	1,040,645	$	2,310,839	$	2,074,544
Net Income including noncontrolling interests	$	40,200	$	36,104	$	103,901	$	59,043