Revenue Accounting for Contracts

9 Months Ended

Jun. 26, 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 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
Revenues:
United States	$	2,472,091	$	2,357,836	$	7,548,192	$	6,701,474
Europe	504,201		491,036		1,662,104		1,706,163
Canada	56,954		59,830		164,601		160,339
Asia	27,995		33,918		90,889		113,294
India	16,465		12,129		33,229		43,131
Australia and New Zealand	130,133		136,711		378,178		386,594
South America and Mexico	—		1,225		—		7,244
Middle East and Africa	52,218		76,937		170,093		226,766
Total	$	3,260,057	$	3,169,622	$	10,047,286	$	9,345,005

Contract Liabilities

Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. Revenue recognized for the three and nine months ended June 26, 2020 that was included in the contract liability balance on September 27, 2019 was $42.4 million and $352.9 million, respectively. Revenue recognized for the three and nine months ended June 28, 2019 that was included in the contract liability balance on September 28, 2018 was $33.0 million and $331.0 million, respectively.

Remaining Performance Obligations     

The Company’s remaining performance obligations as of June 26, 2020 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had approximately $13.8 billion in remaining performance obligations as of June 26, 2020. The Company expects to recognize approximately 45% of our remaining performance obligations into revenue within the next twelve months and the remaining 55% 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.