Reportable Segments

Beginning in fiscal 2018, we aligned our operations to better serve our clients and markets, resulting in two renamed reportable segments. Our GSG reportable segment primarily includes activities with U.S. government clients (federal, state and local) and all activities with development agencies worldwide. Our CIG reportable segment primarily includes activities with U.S. commercial clients and all international activities other than work for development agencies. This alignment allows us to capitalize on our growing market opportunities and enhance the development of high-end consulting and technical solutions to meet our growing client demand. We will continue to report the results of the wind-down of our non-core construction activities in the RCM segment. Prior year amounts for reportable segments have been revised to conform to the current-year presentation.

GSG provides consulting and engineering services primarily to U.S. government clients (federal, state and local) and development agencies worldwide. GSG supports U.S. government civilian and defense agencies with services in water, environment, infrastructure, information technology, and emergency management services. GSG also provides engineering design services for municipal and commercial clients, especially in water infrastructure, solid waste, and high-end sustainable infrastructure designs. Additionally, GSG provides a wide range of support to development agencies worldwide.

CIG provides consulting and engineering services primarily to U.S. commercial clients and international clients, both commercial and local government. CIG supports commercial clients across the Fortune 500, oil and gas, energy utilities, and mining markets. CIG also provides infrastructure and related environmental and geotechnical services, testing, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), as well as Brazil and Chile. CIG also provides field construction management activities in the United States and Western Canada.

We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. The remaining backlog for RCM as of December 31, 2017 was immaterial as the related projects were substantially completed.

Management evaluates the performance of these reportable segments based upon their respective segment operating income before the effect of amortization expense related to acquisitions, and other unallocated corporate expenses. We account for inter-segment revenues and transfers as if they were to third parties; that is, by applying a negotiated fee onto the costs of the services performed. All significant intercompany balances and transactions are eliminated in consolidation.

Reportable Segments

The following tables set forth summarized financial information regarding our reportable segments:



	Three Months Ended
	December 31, 2017			January 1, 2017
	(in thousands)
Revenue
GSG	$	442,772		$	362,859
CIG	331,513			318,071
RCM	6,807			8,231
Elimination of inter-segment revenue	(21,343		)	(20,310		)
Total revenue	$	759,749		$	668,851

Income (loss) from operations
GSG	$	39,125		$	30,168
CIG	21,294			21,544
RCM	(1,158		)	(3,042		)
Corporate ⁽¹⁾	(10,672		)	(8,815		)
Total income from operations	$	48,589		$	39,855

⁽¹⁾ Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments.



	December 31, 2017		October 1, 2017
	(in thousands)
Total Assets
GSG	$	489,893	$	378,839
CIG	481,924		518,697
RCM	33,030		33,620
Corporate ⁽¹⁾	966,140		971,589
Total assets	$	1,970,987	$	1,902,745

⁽¹⁾ Corporate assets consist of assets not allocated to our reportable segments including goodwill, intangible assets, deferred income taxes and certain other assets.

Major Clients

Other than the U.S. federal government, no single client accounted for more than 10% of our revenue. For the three-month periods ended December 31, 2017 and January 1, 2017, GSG and CIG generated revenue from all client sectors.

The following table represents our revenue by client sector:



	Three Months Ended
	December 31, 2017		January 1, 2017
	(in thousands)
Client Sector
U.S. federal government ⁽¹⁾	$	236,249	$	222,634
International ⁽²⁾	164,960		172,457
U.S. state and local government	151,754		83,494
U.S. commercial	206,786		190,266
Total	$	759,749	$	668,851

⁽¹⁾ Includes revenue generated under U.S. federal government contracts performed outside the United States.

⁽²⁾ Includes revenue generated from foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients.