Segment Information

12 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

15. Segment Information

During the second quarter of fiscal 2016, we reorganized our operating and reporting structure around four lines of business (“LOB”).  This reorganization is intended to better serve our global clients, leverage our workforce, help streamline operations, and provide enhanced growth opportunities.  The four global LOBs are: Aerospace & Technology, Buildings & Infrastructure, Industrial, and Petroleum & Chemicals. Previously, the Company operated its business as a single segment.

Under the new organization, each LOB has a president that reports directly to the Company's Chairman and CEO (who is also the Company’s Chief Operating Decision Maker, or “CODM”).  As part of the reorganization, the sales function, which had been managed centrally for many years, is now managed on a LOB basis, and accordingly, the associated cost is now embedded in the new segments and report to the respective LOB presidents.  In addition, a portion of the costs of other support functions (e.g., finance, legal, human resources, and information technology) are allocated to each LOB using methodologies which, we believe, effectively attribute the cost of these support functions to the revenue-generating activities of the Company on a rational basis.  In addition, the cost of the Company’s cash incentive plan, the Jacobs Engineering Group Inc. Management Incentive Plan (“MIP”) and the expense associated with the Jacobs Engineering Group Inc. Stock Incentive Plan (“1999 SIP”) have likewise been charged to the LOBs except for those amounts determined to relate to the business as a whole (which amounts remain in corporate’s results of operations).

Financial information for each LOB is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources.  The Company does not track assets by LOB, nor does it provide such information to the CODM.

The CODM evaluates the operating performance of our LOBs using operating profit, which is defined as margin less “corporate charges” (e.g., the allocated amounts described above).  The Company incurs certain selling, general and administrative (“SG&A”) costs which relate to its business as a whole which are not allocated to the LOBs.

The following tables present total revenues and operating profit for each reportable segment. Prior period information has been restated to reflect the current period presentation (in thousands).

	2016		2015		2014
Revenues from External Customers:
Aerospace & Technology	$	2,657,433	$	2,924,753	$	2,306,453
Buildings & Infrastructure		2,253,512		2,458,379		2,705,197
Industrial		2,793,713		2,517,571		2,956,391
Petroleum & Chemicals		3,259,499		4,214,129		4,727,116
Total	$	10,964,157	$	12,114,832	$	12,695,157

	2016			2015			2014
Operating Profit:
Aerospace & Technology	$	203,808		$	205,368		$	139,684
Buildings & Infrastructure		174,648			145,299			164,439
Industrial		81,268			126,531			134,230
Petroleum & Chemicals		126,604			138,351			162,462
Total Segment Operating Profit		586,328			615,549			600,815
Other Corporate Items		(60,100	)		(15,739	)		20,583
Restructuring Charges		(187,630	)		(154,283	)		(93,330	)
(Loss) Gain on disposal of business and investments		(41,410	)		(2,909	)		12,147
Total Other Expense		(10,465	)		(12,481	)		1,951
Earnings Before Taxes	$	286,723		$	430,137		$	542,166

Included in “other corporate items” in the above table are costs and expenses which relate to general corporate activities as well as corporate-managed benefit and insurance programs.  Such costs and expenses include: (i) those elements of SG&A expenses relating to the business as a whole; (ii) those elements of the MIP and the 1999 SIP relating to corporate personnel whose other compensation costs are not allocated to the LOBs; (iii) the amortization of intangible assets acquired as part of purchased business combinations; (iv) the quarterly variances between the Company’s actual costs of certain of its self-insured integrated risk and employee benefit programs and amounts charged to the LOBs; and (v) certain adjustments relating to costs associated with the Company’s international defined benefit pension plans.  In addition, “other corporate items” includes adjustments to contract margins (both positive and negative) associated with projects where it has been determined, in the opinion of management, that such adjustments are not indicative of the performance of the related LOB and therefore should not be attributed to the LOB.

Included in (Loss) Gain on disposal of business and investments was the losses associated with the sale of the Company’s French subsidiary and a non-cash write-off on an equity investment.

We provide a broad range of technical, professional, and construction services including 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.

The following table presents certain financial information by geographic area for fiscal 2016, 2015, and 2014 (in thousands):

	2016		2015		2014
Revenues:
United States	$	6,247,448	$	7,154,433	$	7,078,366
Europe		2,346,224		2,074,837		2,402,399
Canada		927,942		1,065,651		1,344,632
Asia		299,952		304,393		299,086
India		187,929		163,871		148,453
Australia and New Zealand		436,670		611,271		709,379
South America and Mexico		125,610		143,014		271,213
Middle East and Africa		392,382		597,362		441,629
Total	$	10,964,157	$	12,114,832	$	12,695,157
Long-Lived Assets:
United States	$	195,392	$	208,155	$	240,501
Europe		37,163		55,713		58,562
Canada		21,464		36,647		51,622
Asia		3,069		3,859		4,063
India		13,350		16,264		17,960
Australia and New Zealand		18,888		24,460		49,436
South America and Mexico		5,621		9,127		11,084
Middle East and Africa		24,726		27,013		23,569
Total	$	319,673	$	381,238	$	456,797

Revenues were earned from unaffiliated clients located primarily within the various and respective geographic areas shown. Long-lived assets consist of property and equipment, net of accumulated depreciation and amortization.

The following table presents the revenues earned directly or indirectly from the U.S. federal government and its agencies, expressed as a percentage of total revenues, for fiscal 2016, 2015 and 2014:

2016		2015		2014
	21.4%		21.7%		17.8%