Reportable Segments

9 Months Ended

Jul. 03, 2022

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

We manage our operations under two 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 international clients other than development agencies. Additionally, we continue to report the results of the wind-down of our non-core construction activities in the RCM reportable segment. There has been no remaining backlog for RCM since fiscal 2018 as the projects were complete.

GSG provides high-end 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, sustainable infrastructure, information technology, and disaster management. GSG also provides engineering design services for U.S. municipal and commercial clients, especially in water infrastructure, solid waste, and high-end sustainable infrastructure designs. GSG also leads our support for development agencies worldwide, especially in the United States, United Kingdom, and Australia.

CIG primarily provides high-end consulting and engineering services to U.S. commercial clients, and international clients that include both commercial and government sectors. CIG supports commercial clients across the Fortune 500, renewable energy, industrial, high performance buildings, and aerospace markets. CIG also provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), the United Kingdom, as well as Brazil and Chile.

At the beginning of fiscal 2022, we aligned our operations to better serve our clients and markets, and created a new HPB division in our CIG reportable segment. As a result, we transferred some related operations in our GSG reportable segment to our CIG reportable segment. Accordingly, amounts related to our segment reporting for the third quarter and first nine months of fiscal 2021 have been reclassified to conform to the current year presentation.

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.

The following tables summarize financial information regarding our reportable segments:

	Three Months Ended				Nine Months Ended
	July 3, 2022		June 27, 2021		July 3, 2022		June 27, 2021
	(in thousands)
Revenue
GSG	$	459,987	$	444,263	$	1,365,041	$	1,301,497
CIG	444,238		372,722		1,277,469		1,064,680
RCM	—		143		—		613
Elimination of inter-segment revenue	(13,994)		(15,495)		(41,025)		(45,290)
Total revenue	$	890,231	$	801,633	$	2,601,485	$	2,321,500
Income from operations
GSG	$	45,580	$	44,323	$	147,104	$	128,491
CIG	53,535		38,991		139,328		104,500
Corporate (1)	(15,210)		(13,507)		(40,787)		(36,126)
Total income from operations	$	83,905	$	69,807	$	245,645	$	196,865

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

	Balance at
	July 3, 2022		October 3, 2021
	(in thousands)
Total Assets
GSG	$	549,648	$	545,533
CIG	756,195		698,916
RCM	2		11,360
Corporate (1)	1,371,861		1,320,753
Total assets	$	2,677,706	$	2,576,562

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