Restructuring and Other Charges

6 Months Ended

Mar. 27, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Other ChargesDuring fiscal 2019 and fiscal 2020, the Company implemented certain restructuring and pre-separation initiatives associated with the ECR sale, the KeyW acquisition, the acquisition of John Wood Group's nuclear business and other related cost reduction initiatives. The restructuring activities and related costs were comprised mainly of separation and lease abandonment programs, while the pre-separation activities and costs were mainly related to the engagement of consulting services and internal personnel and other related costs dedicated to the Company’s ECR-business separation.

During the fourth fiscal quarter of 2017, the Company implemented certain restructuring and pre-integration initiatives associated with the impending acquisition of CH2M, which closed on December 15, 2017 (the "CH2M acquisition"). The restructuring activities and related costs were comprised mainly of severance and lease abandonment programs, while the pre-integration activities and costs were mainly related to the engagement of consulting services and internal personnel and other related costs dedicated to the Company’s acquisition integration management efforts. Following the closing of the CH2M acquisition, these activities continued through the second fiscal quarter of 2020 and continue to be comprised mainly of severance, lease abandonment, IT related, consulting and other professional services as well as internal personnel costs.

The activities of the above-mentioned programs are expected to be substantially completed before the end of fiscal 2020.

Collectively, the above-mentioned restructuring activities are referred to as “Restructuring and other charges.”

The following table summarizes the impacts of the Restructuring and other charges by LOB in connection with the CH2M, KeyW and John Wood Group's nuclear business acquisitions and the ECR sale for the three and six months ended March 27, 2020 and March 29, 2019 (in thousands):


	Three Months Ended						Six Months Ended
	March 27, 2020		March 29, 2019		March 27, 2020		March 29, 2019
Critical Mission Solutions	$	3,785	$	341	$	8,076	$	790
People & Places Solutions	5,536		47,626		15,689		58,025
Corporate	31,265		18,854		68,862		53,065
Continuing Operations (1)	40,586		66,821		92,627		111,880
Energy, Chemicals and Resources (included in Discontinued Operations)	—		2,801		—		(2,857)
Total	$	40,586	$	69,622	$	92,627	$	109,023

(1) For the three months ended March 27, 2020 and March 29, 2019, amounts include $40.6 million and $93.9 million, respectively, and for the six months ended March 27, 2020 and March 29, 2019 amounts include $90.5 million and $141.2 million, respectively, in items impacting operating profit, along with items recorded in other income (expense), net, which are the loss on settlement of the CH2M portion of the U.S. pension plan of $0 and $2.1 million for the three and six months ended March 27, 2020, respectively, the gain on the settlement of the CH2M retiree medical plans of $32.4 million and $34.6 million for the three and six months ended March 29, 2019, respectively, and write-off of fixed assets related to restructured leases of $5.3 million for the three and six months ended March 29, 2019. See Note 8- Segment Information.

The activity in the Company’s accrual for the Restructuring and other charges including the program activities described above for the six months ended March 27, 2020 is as follows (in thousands):


Balance at September 27, 2019	$	162,702
Transfer to lease right-of-use asset as a result of adoption of ASC 842 (1)	(116,797)
Net Charges	92,627
Payments and Usage	(100,479)
Balance at March 27, 2020	$	38,053

(1)In addition, there was $24.6 million in lease cease-use liabilities relating to 2015 restructuring initiatives which were reclassified to ROU asset balances in accordance with the adoption of ASC 842, see Note 14- Leases. The 2015 restructuring initiatives are no longer active and therefore activity associated with lease cease-use liabilities for those initiatives is not included in the table.

The following table summarizes the Restructuring and other charges by major type of costs in connection with the CH2M, KeyW and John Wood Group nuclear business acquisitions and the ECR sale for the three and six months ended March 27, 2020 and March 29, 2019 (in thousands):


	Three Months Ended						Six Months Ended
	March 27, 2020		March 29, 2019		March 27, 2020		March 29, 2019
Lease Abandonments	$	4,782	$	40,323	$	4,782	$	49,314
Involuntary Terminations	4,925		7,851		18,078		10,760
Outside Services	23,405		37,705		54,871		55,903
Other	7,474		(19,058)		14,896		(4,097)
Total	$	40,586	$	66,821	$	92,627	$	111,880

Cumulative amounts since 2017 incurred to date under our various restructuring and other activities described above by each major type of cost as of March 27, 2020 are as follows (in thousands):


Lease Abandonments	$	166,283
Involuntary Terminations	93,756
Outside Services	224,006
Other	86,324
Total	$	570,369