Reportable Segments

12 Months Ended

Oct. 02, 2011

Reportable Segments

Reportable Segments

17.   Reportable Segments

        Our reportable segments are as follows:

        Engineering and Consulting Services.    ECS provides front-end science, consulting engineering services and project management in the areas of surface water management, groundwater, waste management, mining and geotechnical sciences, arctic engineering, industrial processes, and information technology.

        Technical Support Services.    TSS advises clients through the study, design and implementation phases of projects. TSS provides management consulting and strategic direction in the areas of environmental assessments/hazardous waste management, climate change, international development/stabilization, energy services, and technical government staffing services.

        Engineering and Architecture Services.    EAS provides engineering and architecture design services, including LEED and sustainability services, together with technical and program administration services for projects related to water infrastructure, buildings, and transportation and facilities.

        Remediation and Construction Management.    RCM is focused on completing our full-service support to U.S. federal government, state and local governments and commercial clients. RCM's service lines include environmental remediation, infrastructure development, and alternative energy.

        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 sales and transfers as if the sales and transfers 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 set forth summarized financial information concerning our reportable segments:

Reportable Segments

	ECS		TSS		EAS		RCM		Total
	(in thousands)
Fiscal Year 2011:
Revenue	$	1,107,944	$	568,335	$	308,112	$	725,569	$	2,709,960
Segment operating income		100,790		40,895		22,597		18,746		183,028
Total assets		913,167		338,379		111,555		317,514		1,680,615
Fiscal Year 2010:
Revenue	$	730,425	$	527,697	$	294,112	$	759,088	$	2,311,322
Segment operating income		60,810		39,186		12,194		33,651		145,841
Total assets		618,025		281,376		93,696		327,393		1,320,490
Fiscal Year 2009:
Revenue	$	601,317	$	522,748	$	299,691	$	951,604	$	2,375,360
Segment operating income		47,095		37,584		13,599		38,156		136,434
Total assets		486,002		223,177		91,646		351,247		1,152,072

Reconciliations

		Fiscal Year Ended
		October 2, 2011			October 3, 2010			September 27, 2009
		(in thousands)
Revenue
Revenue from reportable segments		$	2,709,960		$	2,311,322		$	2,375,360
Elimination of inter-segment revenue			(136,816	)		(110,090	)		(87,876	)
	Total consolidated revenue	$	2,573,144		$	2,201,232		$	2,287,484
Operating Income
Segment operating income		$	183,028		$	145,841		$	136,434
Amortization of intangibles			(27,978	)		(12,683	)		(9,820	)
Other expense(1)			(8,628	)		(8,684	)		(4,725	)
	Total consolidated operating income	$	146,422		$	124,474		$	121,889
Assets
Total assets of reportable segments		$	1,680,615		$	1,320,490		$	1,152,072
Assets not allocated to segments and intercompany eliminations			(86,627	)		61,199			(54,167	)
	Total consolidated assets	$	1,593,988		$	1,381,689		$	1,097,905

⁽¹⁾

Other expense includes corporate costs not allocated to segments.

        We are implementing organizational changes that will result in a realignment of our reportable segments. These changes are intended to improve organizational effectiveness and efficiency by better aligning operations with similar customer types, project types and financial metrics. These changes will be effective at the beginning of the first quarter of fiscal 2012, and our reportable segment results on a prospective basis will be revised consistent with the new organizational structure. Prior period amounts will be restated to conform to the new presentation.

Geographic Information

	Fiscal Year Ended
	October 2, 2011				October 3, 2010				September 27, 2009
	Revenue		Long-Lived Assets(2)		Revenue		Long-Lived Assets(2)		Revenue		Long-Lived Assets(2)
					(in thousands)
United States	$	1,976,452	$	102,316	$	1,991,758	$	121,611	$	2,182,998	$	110,142
Foreign countries(1)		596,692		78,198		209,474		15,873		104,486		6,327

⁽¹⁾

Includes revenue generated from our foreign operations, primarily in Canada, and revenue generated from non-U.S. clients. Assets consist primarily of amounts from our Canadian operations.

⁽²⁾

Excludes goodwill.

Major Clients

        Other than the U.S. federal government, we had no single client that accounted for more than 10% of our revenue. All of our segments generated revenue from all client sectors.

        The following table presents our revenue by client sector:

		Fiscal Year Ended
		October 2, 2011		October 3, 2010		September 27, 2009
		(in thousands)
Client Sector
Federal government(1)		$	1,115,729	$	1,142,082	$	1,164,751
State and local government			282,941		325,953		277,756
Commercial			577,782		523,723		740,491
International(2)			596,692		209,474		104,486
	Total	$	2,573,144	$	2,201,232	$	2,287,484

⁽¹⁾

Includes revenue generated under U.S. government contracts performed outside the United States.

⁽²⁾

Includes revenue generated from our foreign operations, primarily in Canada, and revenue generated from non-U.S. clients.