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 comprising each 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 (in thousands) and include a reconciliation of segment operating profit to total USGAAP operating profit by including certain corporate-level expenses and expenses relating to Restructuring and Other Charges (in thousands).

	For the Three Months Ended				For the Nine Months Ended
	June 30, 2017		July 1, 2016		June 30, 2017		July 1, 2016
Revenues from External Customers:
Aerospace & Technology	$	585,432	$	667,785	$	1,739,908	$	2,007,440
Buildings & Infrastructure		647,252		553,546		1,813,111		1,696,004
Industrial		681,588		705,996		2,015,784		2,044,652
Petroleum & Chemicals		600,479		766,546		1,800,119		2,575,474
Total	$	2,514,751	$	2,693,873	$	7,368,922	$	8,323,570

	For the Three Months Ended						For the Nine Months Ended
	June 30, 2017			July 1, 2016			June 30, 2017			July 1, 2016
Operating Profit:
Aerospace & Technology	$	50,591		$	53,741		$	146,735		$	156,861
Buildings & Infrastructure (1)		56,173			50,168			138,957			133,083
Industrial		32,347			28,444			81,549			68,216
Petroleum & Chemicals		29,055			29,646			88,326			92,194
Total Segment Operating Profit		168,166			161,999			455,567			450,354
Other Corporate Expenses		(28,991	)		(19,523	)		(54,392	)		(57,896	)
Restructuring and Other Charges		(10,700	)		(32,920	)		(115,899	)		(136,671	)
Total USGAAP Operating Profit		128,475			109,556			285,276			255,787
Total Other (Expense) income		(1,079	)		(6,657	)		(10,276	)		(4,460	)
Total Other (Expense) income - Restructuring		—			(92	)		(1,233	)		(277	)
Earnings Before Taxes	$	127,396		$	102,807		$	273,767		$	251,050

(1)	Excludes $1,246 and $23,844 in restructuring and other charges for the three and nine month periods ended June 30, 2017. See page 12.

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 nine months ended June 30, 2017 and July 1, 2016 (in thousands).

	For the Three Months Ended										For the Nine Months Ended
	June 30, 2017										June 30, 2017
	Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total		Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total
Technical Professional Services Revenues
Project Services	$	317,343	$	587,543	$	234,670	$	307,806	$	1,447,362	$	799,842	$	1,633,543	$	617,970	$	1,020,407	$	4,071,762
Process, Scientific, and Systems Consulting		121,450		—		—		11,016		132,466		506,250		—		—		27,416		533,666
Total Technical Professional Services Revenues		438,793		587,543		234,670		318,822		1,579,828		1,306,092		1,633,543		617,970		1,047,823		4,605,428
Field Services Revenues
Construction		23,228		56,067		352,002		281,390		712,687		78,005		168,526		1,118,697		751,932		2,117,160
Operations and Maintenance ("O&M")		123,411		3,642		94,916		267		222,236		355,811		11,042		279,117		364		646,334
Total Field Services Revenues		146,639		59,709		446,918		281,657		934,923		433,816		179,568		1,397,814		752,296		2,763,494
Total Revenues	$	585,432	$	647,252	$	681,588	$	600,479	$	2,514,751	$	1,739,908	$	1,813,111	$	2,015,784	$	1,800,119	$	7,368,922

	For the Three Months Ended										For the Nine Months Ended
	July 1, 2016										July 1, 2016
	Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total		Aerospace & Technology		Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total
Technical Professional Services Revenues
Project Services	$	35,311	$	503,336	$	222,263	$	465,324	$	1,226,234	$	502,105	$	1,570,143	$	646,543	$	1,402,110	$	4,120,901
Process, Scientific, and Systems Consulting		371,954		—		—		15,335		387,289		790,533		—		—		47,825		838,358
Total Technical Professional Services Revenues		407,265		503,336		222,263		480,659		1,613,523		1,292,638		1,570,143		646,543		1,449,935		4,959,259
Field Services Revenues
Construction		7,278		37,518		378,289		285,795		708,880		77,464		88,383		1,114,312		1,124,293		2,404,452
Operations and Maintenance ("O&M")		253,242		12,692		105,444		92		371,470		637,338		37,478		283,797		1,246		959,859
Total Field Services Revenues		260,520		50,210		483,733		285,887		1,080,350		714,802		125,861		1,398,109		1,125,539		3,364,311
Total Revenues	$	667,785	$	553,546	$	705,996	$	766,546	$	2,693,873	$	2,007,440	$	1,696,004	$	2,044,652	$	2,575,474	$	8,323,570