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 July 1, 2018 was immaterial as the related projects are substantially complete.

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 summarize financial information regarding our reportable segments:



	Three Months Ended						Nine Months Ended
	July 1, 2018			July 2, 2017			July 1, 2018			July 2, 2017
	(in thousands)
Revenue
GSG	$	423,912		$	379,292		$	1,272,712		$	1,099,265
CIG	352,631			318,195			993,849			965,393
RCM	3,336			4,192			11,622			12,401
Elimination of inter-segment revenue	(15,084		)	(16,140		)	(53,378		)	(58,888		)
Total revenue	$	764,795		$	685,539		$	2,224,805		$	2,018,171

Income (loss) from operations
GSG	$	44,372		$	32,047		$	117,674		$	95,647
CIG	27,892			24,082			67,585			64,085
RCM	(485		)	(1,251		)	(2,132		)	(12,759		)
Corporate ⁽¹⁾	(16,283		)	(8,994		)	(36,326		)	(18,278		)
Total income from operations	$	55,496		$	45,884		$	146,801		$	128,695

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



	July 1, 2018		October 1, 2017
	(in thousands)
Total Assets
GSG	$	483,327	$	378,839
CIG	485,595		518,697
RCM	26,938		33,620
Corporate ⁽¹⁾	1,037,970		971,589
Total assets	$	2,033,830	$	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 and nine months ended July 1, 2018 and July 2, 2017, GSG and CIG generated revenue from all client sectors.

The following table represents our revenue by client sector:



	Three Months Ended				Nine Months Ended
	July 1, 2018		July 2, 2017		July 1, 2018		July 2, 2017
	(in thousands)
Client Sector
U.S. state and local government	$	103,169	$	83,716	$	359,828	$	250,392
U.S. federal government ⁽¹⁾	245,982		224,343		719,181		665,086
U.S. commercial	208,507		199,065		595,691		554,707
International ⁽²⁾	207,137		178,415		550,105		547,986
Total	$	764,795	$	685,539	$	2,224,805	$	2,018,171

⁽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.