Segment Information

6 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

During the second fiscal quarter of 2016, we reorganized our operations around four global lines of business (“LOB”), which also serve as our operating segments:  Petroleum & Chemicals, Buildings & Infrastructure, Aerospace & Technology, and Industrial. We determined that this new organization would better support the needs of managing each unique set of customers that fall within each segment.  As a result of the new organization, we subsequently realigned our internal reporting structures to enable our Chief Executive Officer, who is also our Chief Operating Decision Maker (“CODM”), to evaluate the performance of each of these segments and make appropriate resource allocations among each of the segments. For purposes of our goodwill impairment testing, we have determined that our operating segments are also our reporting units based on management’s conclusion that the components comprisingeach of our operating segments share similar economic characteristics and meet the aggregation criteria in accordance with ASC 350.

Under the current organization, each LOB has a president that reports directly to the Company's Chairman and CEO or CODM.  In addition, the sales function, which had been managed centrally for many years, is now managed on an LOB basis, and accordingly, the associated cost is now embedded in the new segments and reported 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.  The cost of the Company’s cash incentive plan, the Management Incentive Plan (“MIP”) and the expense associated with the Jacobs Engineering Group Inc. 1999 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 generally 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).

	For the Three Months Ended				For the Six Months Ended
	March 31, 2017		April 1, 2016		March 31, 2017		April 1, 2016
Revenues from External Customers:
Aerospace & Technology	$	577,040	$	669,464	$	1,154,476	$	1,339,655
Buildings & Infrastructure		585,242		579,128		1,165,859		1,142,458
Industrial		582,458		666,556		1,334,196		1,338,656
Petroleum & Chemicals		557,827		866,615		1,199,640		1,808,928
Total	$	2,302,567	$	2,781,763	$	4,854,171	$	5,629,697

	For the Three Months Ended						For the Six Months Ended
	March 31, 2017			April 1, 2016			March 31, 2017			April 1, 2016
Operating Profit:
Aerospace & Technology	$	45,057		$	55,121		$	96,144		$	103,120
Buildings & Infrastructure		43,987			42,463			82,784			82,915
Industrial		24,073			12,417			49,202			39,772
Petroleum & Chemicals		35,619			30,945			59,271			62,548
Total Segment Operating Profit		148,736			140,946			287,401			288,355
Other Corporate Expenses		(8,338	)		(18,797	)		(26,634	)		(38,373	)
Restructuring and Other Charges		(72,225	)		(35,368	)		(103,966	)		(103,751	)
Total Operating Profit		68,173			86,781			156,801			146,231
Total Other (Expense) income		(6,449	)		3,675			(9,197	)		2,012
Total Other (Expense) income - Restructuring		(1,233	)		-			(1,233	)		-
Earnings Before Taxes	$	60,491		$	90,456		$	146,371		$	148,243

Included in “Other Corporate Expenses” 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 our incentive compensation plans 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 Expenses” may also include from time to time certain 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.

The following tables present total services revenues for each reportable segment for the three months and six months ended March 31, 2017 and April 1, 2016 (in millions).

	For the Three Months Ended										For the Six Months Ended
	March 31, 2017										March 31, 2017
	Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total		Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total
Technical Professional Services Revenues
Project Services	$	265.1	$	532.0	$	166.9	$	339.8	$	1,303.8	$	482.5	$	1,046.0	$	383.3	$	712.6	$	2,624.4
Process, Scientific, and Systems Consulting		184.9		-		-		9.5		194.4		384.8		-		-		16.4		401.2
Total Technical Professional Services Revenues		450.0		532.0		166.9		349.3		1,498.2		867.3		1,046.0		383.3		729.0		3,025.6
Field Services Revenues
Construction		10.3		49.6		326.2		208.5		594.6		54.8		112.5		766.7		470.5		1,404.5
Operations and Maintenance ("O&M")		116.7		3.6		89.4		0.0		209.7		232.4		7.4		184.2		0.1		424.1
Total Field Services Revenues		127.0		53.2		415.6		208.5		804.3		287.2		119.9		950.9		470.6		1,828.6
Total Revenues	$	577.0	$	585.2	$	582.5	$	557.8	$	2,302.6	$	1,154.5	$	1,165.9	$	1,334.2	$	1,199.6	$	4,854.2

	For the Three Months Ended										For the Six Months Ended
	April 1, 2016										April 1, 2016
	Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total		Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total
Technical Professional Services Revenues
Project Services	$	264.2	$	542.6	$	218.1	$	509.1	$	1,534.0	$	466.8	$	1,066.8	$	424.3	$	972.4	$	2,930.3
Process, Scientific, and Systems Consulting		140.0		-		-		16.5		156.5		382.9		-		-		32.5		415.4
Total Technical Professional Services Revenues		404.2		542.6		218.1		525.7		1,690.5		849.7		1,066.8		424.3		1,004.9		3,345.7
Field Services Revenues
Construction		79.4		24.4		363.0		340.4		807.2		105.8		50.9		736.0		802.9		1,695.6
Operations and Maintenance ("O&M")		185.9		12.2		85.4		0.6		284.1		384.1		24.8		178.4		1.2		588.4
Total Field Services Revenues		265.3		36.6		448.4		341.0		1,091.3		489.9		75.7		914.4		804.0		2,284.0
Total Revenues	$	669.5	$	579.2	$	666.6	$	866.6	$	2,781.8	$	1,339.7	$	1,142.5	$	1,338.7	$	1,808.9	$	5,629.7