Basis of Presentation

9 Months Ended

Jul. 01, 2012

Basis of Presentation

Basis of Presentation

1.Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and related notes of Tetra Tech, Inc. (“we,” “us” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  They do not include all of the information and footnotes required by GAAP for complete financial statements and, therefore, should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended October 2, 2011.

Our condensed consolidated financial statements reflect all normal recurring adjustments that are considered necessary for a fair statement of our financial position, results of operations and cash flows for the interim periods presented.  The results of operations and cash flows for any interim period are not necessarily indicative of results for the full year.

Our condensed consolidated financial statements include the accounts of our wholly-owned subsidiaries, and joint ventures of which we are the primary beneficiary.  For the joint ventures in which we do not have a controlling interest, but exert a significant influence, we apply the equity method of accounting (see Note 12, “Joint Ventures” for further discussion).  Certain prior year amounts for Tetra Tech, Inc. and its reportable segments have been revised to conform to the current year presentation.  These revisions include reclassification of $2.5 million and $6.7 million of expenses that were previously reported in “Other costs of revenue” to be part of “Selling, general and administrative (“SG&A”) expenses” for the three and nine-month periods of fiscal 2011, respectively.  In the first quarter of fiscal 2012, we re-aligned certain operating activities in our reportable segments to improve organizational effectiveness and efficiency by better aligning operations with similar client types, project types and financial metrics (see Note 9, “Reportable Segments” for further discussion).  For the three and nine months ended July 1, 2012, “Interest expense – net” on the condensed consolidated statements of income includes $0.2 million and $0.6 million in interest income compared to $0.2 million and $0.5 million for the same periods last year, respectively.