Reportable Segments

9 Months Ended

Jun. 28, 2015

Reportable Segments

Reportable Segments

10.Reportable Segments

Beginning in the first quarter of fiscal 2015, we reorganized our core operations into our WEI and RME reportable segments. The results of the wind-down of our non-core construction activities are reported in the RCM reportable segment.  Prior year amounts for reportable segments have been revised to conform to the current-year presentation.

Our reportable segments are described as follows:

WEI:  WEI provides consulting and engineering services worldwide for a broad range of water and infrastructure-related needs in both developed and emerging economies.  WEI supports both public and private clients including federal, state/provincial, and local governments, and global and local commercial and industrial clients.  The primary markets for WEI’s services include water management, environmental restoration, government consulting, and a broad range of civil infrastructure requirements for facilities, transportation, and regional and local development.  WEI’s services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance.

RME:  RME provides consulting and engineering services worldwide for a broad range of resource management and energy needs.  RME supports both private and public clients, including global industrial and commercial clients, U.S. federal agencies in large scale remediation, and major international development agencies.  The primary markets for RME’s services include oil and gas, energy, mining, remediation, utilities, waste management, and international development.  RME’s services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance.  RME supports engineering, procurement and construction management (“EPCM”) for full service implementation of commercial projects, especially for oil and gas, industrial, and mining customers.

RCM:  We report the results of the wind-down of our non-core construction activities in the RCM reportable segment.  The remaining work performed in this segment will be substantially complete by the end of fiscal 2016.

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 sales and transfers as if the sales and transfers 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.

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

Reportable Segments

	Three Months Ended				Nine Months Ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(in thousands)
Revenue
WEI	$	242,285	$	238,744	$	699,319	$	692,051
RME	330,686		347,306		1,004,546		1,049,466
RCM	16,466		67,083		69,046		189,447
Elimination of inter-segment revenue	(14,329)		(23,631)		(51,984)		(69,329)
Total revenue	$	575,108	$	629,502	$	1,720,927	$	1,861,635

Operating Income (Loss)
WEI	$	24,611	$	20,706	$	62,231	$	61,228
RME	23,596		24,239		69,067		68,225
RCM	(190)		(5,922)		(3,605)		(9,323)
Corporate (1)	(7,296)		144		(19,961)		8,940
Total operating income	$	40,721	$	39,167	$	107,732	$	129,070

Depreciation
WEI	$	1,211	$	1,305	$	3,633	$	4,081
RME	3,355		3,608		10,699		11,478
RCM	237		702		1,573		2,271
Corporate (1)	516		839		2,207		2,330
Total depreciation	$	5,319	$	6,454	$	18,112	$	20,160
(1)Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments.

	June 28, 2015		September 28, 2014
	(in thousands)
Total Assets
WEI	$	259,072	$	302,877
RME	434,493		442,911
RCM	61,873		100,996
Corporate (1)	948,084		929,620
Total assets	$	1,703,522	$	1,776,404
(1)Corporate assets consist of intercompany eliminations and assets not allocated to our reportablesegments including goodwill, intangible assets, deferred income taxes and certain other assets.

Major Clients

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

The following table represents our revenue by client sector:

	Three Months Ended				Nine Months Ended
	June 28, 2015		June 29, 2014		June 28, 2015		June 29, 2014
	(in thousands)
Client Sector
International (1)	$	124,951	$	141,553	$	445,691	$	487,056
U.S. commercial	193,098		182,590		523,839		513,684
U.S. federal government (2)	186,578		204,072		541,613		580,654
U.S. state and local government	70,481		101,287		209,784		280,241
Total	$	575,108	$	629,502	$	1,720,927	$	1,861,635
(1)Includes revenue generated from foreign operations, primarily in Canada, and revenue generated from non-U.S. clients. (2)Includes revenue generated under U.S. federal government contracts performed outside the United States.