Revenue Accounting for Contracts

6 Months Ended

Mar. 27, 2020

Revenue from Contract with Customer [Abstract]

Revenue Accounting for Contracts

Revenue Accounting for Contracts

Disaggregation of Revenues

Our revenues are principally derived from contracts to provide a diverse range of technical, professional, and construction services to a large number of industrial, commercial, and governmental clients. We provide a broad range of engineering, design, and architectural services; construction and construction management services; operations and maintenance services; and process, scientific, and systems consulting services. We provide our services through offices and subsidiaries located primarily in North America, South America, Europe, the Middle East, India, Australia, Africa, and Asia. We provide our services under cost-reimbursable and fixed-price contracts. Our contracts are with many different customers in numerous industries. Refer to Note 8- Segment Information for additional information on how we disaggregate our revenues by reportable segment.

The following table further disaggregates our revenue by geographic area 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
Revenues:
United States	$	2,543,387	$	2,161,334	$	5,076,101	$	4,343,638
Europe	606,630		600,903		1,157,903		1,215,127
Canada	52,251		50,021		107,647		100,509
Asia	32,454		43,765		62,894		79,376
India	10,784		18,364		16,764		31,002
Australia and New Zealand	118,850		123,235		248,045		249,883
South America and Mexico	—		3,370		—		6,020
Middle East and Africa	62,824		90,604		117,875		149,829
Total	$	3,427,180	$	3,091,596	$	6,787,229	$	6,175,384

Contract Liabilities

Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. Revenue recognized for the three and six months ended March 27, 2020 that was included in the contract liability balance on September 27, 2019 was $66.4 million and $310.5 million, respectively. Revenue recognized for the three and six months ended March 29, 2019 that was included in the contract liability balance on September 28, 2018 was $200.2 million and $410.0 million, respectively.

Remaining Performance Obligations     

The Company’s remaining performance obligations as of March 27, 2020 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had approximately $13.0 billion in remaining performance obligations as of March 27, 2020. The Company expects to recognize approximately 49% of our remaining performance obligations into revenue within the next twelve months and the remaining 51% thereafter.

Although remaining performance obligations reflect business that is considered to be firm, cancellations, scope adjustments, foreign currency exchange fluctuations or deferrals may occur that impact their volume or the expected timing of their recognition. Remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate.