Restructuring and Other Charges

9 Months Ended

Jun. 26, 2020

Restructuring and Related Activities [Abstract]

During fiscal 2019 and fiscal 2020, the Company implemented certain restructuring and preliminary 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 preliminary 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 preliminary integration initiatives associated with the then-impending acquisition of CH2M, which closed in December 2017 (the "CH2M acquisition"). The restructuring activities and related costs were comprised mainly of integration, severance and lease abandonment programs, while the preliminary 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 third 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 2021.

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 nine months ended June 26, 2020 and June 28, 2019 (in thousands):


	Three Months Ended						Nine Months Ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Critical Mission Solutions	$	3,173	$	7,699	$	11,248	$	8,489
People & Places Solutions	3,818		10,619		19,507		68,644
Corporate	12,690		74,921		81,554		127,986
Continuing Operations (1)	19,681		93,239		112,309		205,119
Energy, Chemicals and Resources (included in Discontinued Operations)	—		2,720		—		(138)
Total	$	19,681	$	95,959	$	112,309	$	204,981

(1)For the three months ended June 26, 2020 and June 28, 2019, amounts include $19.7 million and $92.4 million, respectively, and for the nine months ended June 26, 2020 and June 28, 2019 amounts include $109.6 million and $233.6 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 $— and $2.1 million for the three and nine months ended June 26, 2020, respectively, the gain on the settlement of the CH2M retiree medical plans of $— and $34.6 million for the three and nine months ended June 28, 2019, respectively, and write-off of fixed assets related to restructured leases of $0.9 million and $6.2 million for the three and nine months ended June 28, 2019, and other miscellaneous expenses of $0.6 million for the nine months ended June 26, 2020. 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 nine months ended June 26, 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	112,309
Payments and Usage	(133,668)
Balance at June 26, 2020	$	24,546

(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 nine months ended June 26, 2020 and June 28, 2019 (in thousands):


	Three Months Ended						Nine Months Ended
	June 26, 2020		June 28, 2019		June 26, 2020		June 28, 2019
Lease Abandonments	$	(11,776)	$	22,982	$	(7,860)	$	72,296
Involuntary Terminations	(49)		12,020		18,222		22,944
Outside Services	20,865		39,853		74,223		95,130
Other	10,641		18,384		27,724		14,749
Total	$	19,681	$	93,239	$	112,309	$	205,119

Cumulative amounts since 2017 incurred to date under our various restructuring and other activities described above by each major type of cost as of June 26, 2020 are as follows (in thousands):


Lease Abandonments	$	154,507
Involuntary Terminations	93,707
Outside Services	244,871
Other	96,965
Total	$	590,050