SEGMENT AND RELATED INFORMATION

6 Months Ended

Jul. 04, 2014

Notes to Financial Statements [Abstract]

SEGMENT AND RELATED INFORMATION

NOTE 15.SEGMENT AND RELATED INFORMATION

We operate our business through the following four segments:

• Our Infrastructure & EnvironmentDivisionprovides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to the U.S. federal government, state and local government agencies, and private sector clients in the U.S. and internationally.
• Our Federal ServicesDivision provides services to a wide variety of U.S. federal government agencies, as well as to national governments in other countries. This includes program management, planning, design, engineering, systems engineering and technical assistance, construction and construction management, operations and maintenance, management and operations, IT, and decommissioning and closure services.
• Our Energy & ConstructionDivisionprovides program management, planning, design, engineering, construction and construction management, operations and maintenance, and decommissioning and closure services to private sector clients as well as federal, state, and local government agencies.
• Our Oil & Gas Division provides services to oil and gas industry clients throughout the U.S. and Canada. This includes oilfield services, such as rig transportation and fluid hauling; oil and gas production services, including mechanical, electrical and instrumentation services; pipelineand facility construction;engineering; and maintenance services.

These four segments operate under separate management groups and produce discrete financial information. Their operating results also are reviewed separately by management. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in our Current Report on Form 8-K. The information disclosed in our condensed consolidated financial statements is based on the four segments that compose our current organizational structure.

Effective with the beginning of our fiscal year 2014, we realigned our Global Management and Operations Services Group, which was previously a component of our Energy & Construction Division, under the operations and management of our Federal Services Division. The realignment of this group consolidated the majority of our business with U.S. federal government agencies and national governments outside the U.S. in our Federal Services Division. We also realigned a portion of our facility construction, process engineering, and operations and maintenance services to the oil and gas industry among our Oil & Gas, Infrastructure & Environment, and Energy & Construction Divisions. These changes, which restructured elements of our oil and gas business from an organization based on legacy acquisitions to one based on service, are designed to improve our ability to provide integrated services to our oil and gas clients. To reflect these realignments, we have revised the prior year amounts to conform to our current year presentation.

The following table presentssummarized financial information for our reportable segments. “Inter-segment, eliminations and other” in the following table includes eliminations of inter-segment sales and investments in subsidiaries. The segment balance sheet information presented below is included for informational purposes only. We do not allocate resources based upon the balance sheet amounts of individual segments. Our long-lived assets consist primarily of property and equipment.

		Three Months Ended				Six Months Ended
		July 4,		June 28,		July 4,		June 28,
(In millions)		2014		2013		2014		2013
Revenues
Infrastructure & Environment		$	824	$	947	$	1,674	$	1,845
Federal Services			728		790		1,377		1,697
Energy & Construction			562		641		1,106		1,179
Oil & Gas			463		459		977		967
Inter-segment, eliminations and other			(22)		(45)		(42)		(93)
	Total revenues	$	2,555	$	2,792	$	5,092	$	5,595
Equity in income of unconsolidated joint ventures
Infrastructure & Environment		$	—	$	—	$	1	$	1
Federal Services			16		15		35		36
Energy & Construction			1		2		2		4
Oil & Gas			—		1		(2)		1
	Total equity in income of unconsolidated joint ventures	$	17	$	18	$	36	$	42
URS operating income (1)
Infrastructure & Environment		$	52	$	60	$	87	$	99
Federal Services			79		76		126		180
Energy & Construction			12		19		16		27
Oil & Gas			2		(2)		13		8
Corporate (2)			(27)		(23)		(49)		(46)
	Total URS operating income	$	118	$	130	$	193	$	268
Operating income
Infrastructure & Environment		$	52	$	60	$	87	$	100
Federal Services			95		89		152		204
Energy & Construction			16		21		22		33
Oil & Gas			2		(2)		13		7
Corporate (2)			(27)		(23)		(49)		(46)
	Total operating income	$	138	$	145	$	225	$	298
Depreciation and amortization
Infrastructure & Environment		$	13	$	12	$	25	$	25
Federal Services			11		11		22		22
Energy & Construction			10		11		19		22
Oil & Gas			23		30		49		61
Corporate			3		2		5		4
	Total depreciation and amortization	$	60	$	66	$	120	$	134

• We are providing information regarding URS operating income (loss) by segment because management uses this information to assess performance and make decisions about resource allocation. URS operating income is defined as segment operating income after reductions for pre-tax noncontrolling interests.
• Corporate includes expenses related to corporate functions and acquisition-related expenses.

Reconciliations of URS operating income (loss) by segment to segment operating income (loss) for the three andsixmonths ended July 4, 2014 and June 28, 2013are as follows:

		Three Months Ended July 4, 2014
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	52	$	79	$	12	$	2	$	(27)	$	118
Noncontrolling interests			—		16		4		—		—		20
	Operating income (loss)	$	52	$	95	$	16	$	2	$	(27)	$	138
		Three Months Ended June 28, 2013
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	60	$	76	$	19	$	(2)	$	(23)	$	130
Noncontrolling interests			—		13		2		—		—		15
	Operating income (loss)	$	60	$	89	$	21	$	(2)	$	(23)	$	145
		Six Months Ended July 4, 2014
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	87	$	126	$	16	$	13	$	(49)	$	193
Noncontrolling interests			—		26		6		—		—		32
	Operating income (loss)	$	87	$	152	$	22	$	13	$	(49)	$	225
		Six Months Ended June 28, 2013
		Infrastructure				Energy		Oil
		&		Federal		&		&
(In millions)		Environment		Services		Construction		Gas		Corporate		Consolidated
URS operating income (loss)		$	99	$	180	$	27	$	8	$	(46)	$	268
Noncontrolling interests			1		24		6		(1)		—		30
	Operating income (loss)	$	100	$	204	$	33	$	7	$	(46)	$	298

Total investments in and advances to unconsolidated joint ventures and property and equipment, net of accumulated depreciation, were as follows:

		July 4,		January 3,
(In millions)		2014		2014
Infrastructure & Environment		$	7	$	8
Federal Services			98		95
Energy & Construction			20		21
Oil & Gas			119		121
	Total investments in and advances to unconsolidated joint ventures	$	244	$	245
Infrastructure & Environment		$	149	$	136
Federal Services			38		39
Energy & Construction			48		53
Oil & Gas			328		351
Corporate			29		29
	Total property and equipment, net of accumulated depreciation	$	592	$	608

Total assets by segment were as follows:

		July 4,		January 3,
(In millions)		2014		2014
Infrastructure & Environment		$	2,180	$	2,119
Federal Services			2,684		2,728
Energy & Construction			2,146		2,118
Oil & Gas			1,479		1,496
Corporate			166		257
	Total assets	$	8,655	$	8,718

Major Customers and Other

Our largest clients are from our federal market sector. Within this sector, we have multiple contracts with our two major customers: the U.S. Army and the DOE. For the purpose of analyzing revenues from major customers, we do not consider the combination of all federal departments and agencies as one customer. The different federal agencies manage separate budgets. As such, reductions in spending by one federal agency do not affect the revenues we could earn from another federal agency. In addition, the procurement processes for federal agencies are not centralized, and procurement decisions are made separately by each federal agency. The loss of the federal government, the U.S. Army, or DOE as clients would have a material adverse effect on our business.

Our revenues from the U.S. Army and DOE by division for the three and sixmonths ended July 4, 2014 and June 28, 2013 are presented below:

		Three Months Ended				Six Months Ended
		July 4,		June 28,		July 4,		June 28,
(In millions, except percentages)		2014		2013		2014		2013
The U.S. Army (1)
	Infrastructure & Environment	$	34	$	32	$	67	$	65
	Federal Services		203		254		378		643
	Energy & Construction		58		28		96		52
Total U.S. Army		$	295	$	314	$	541	$	760
Revenues from the U.S. Army as a percentage of our consolidated revenues			12%		11%		11%		14%
DOE
	Infrastructure & Environment	$	—	$	1	$	1	$	2
	Federal Services		225		212		410		422
	Energy & Construction		—		—		1		—
Total DOE		$	225	$	213	$	412	$	424
Revenues from DOE as a percentage of our consolidated revenues			9%		8%		8%		8%
Revenues from the federal market sector as a percentage of our consolidated revenues			32%		34%		31%		36%

• The U.S. Army includes U.S. Army Corps of Engineers.