Reportable Segments

12 Months Ended

Sep. 29, 2013

Reportable Segments

Reportable Segments

18.         Reportable Segments

              In the first quarter of fiscal 2013, we implemented a reorganization of our operations to improve future growth and profitability. These activities included the consolidation and realignment of certain operating activities to improve organizational effectiveness and achieve efficiencies in our segment management. This reorganization included the elimination of the EAS segment. Operating activities previously reported in this segment were realigned to operations with similar client types, project types and financial metrics in the ECS and TSS segments. Segment results for the prior year have been revised to conform to the current-year presentation.

              Our reportable segments for fiscal 2013 were as follows:

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

              Technical Support Services.    TSS provides management consulting and engineering services and strategic direction in the areas of environmental assessments/hazardous waste management, climate change, international development, international reconstruction and stabilization, energy, oil and gas, technical government consulting, and building and facilities.

              Remediation and Construction Management.    RCM provides full-service support, including construction and construction management, to all of our client sectors, including the U.S. federal government in the United States and internationally, and commercial clients worldwide, in the areas of environmental remediation, infrastructure development, solid waste management, energy, and oil and gas.

              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

	Fiscal Year Ended
	September 29, 2013			September 30, 2012			October 2, 2011
	(in thousands)
Revenue
ECS	$	1,035,983		$	1,155,256		$	1,110,060
TSS		932,375			1,020,779			995,249
RCM		725,689			621,957			604,651
Elimination of inter-segment revenue		(80,292	)		(86,917	)		(136,816	)
Total revenue	$	2,613,755		$	2,711,075		$	2,573,144
Operating Income
ECS	$	44,598		$	96,220		$	99,868
TSS		71,842			71,767			69,977
RCM		(6,706	)		22,374			13,183
Corporate (1)		(89,516	)		(23,994	)		(36,606	)
Total operating income	$	20,218		$	166,367		$	146,422
Depreciation
ECS	$	10,494		$	10,126		$	12,067
TSS		2,839			3,227			2,028
RCM		13,160			10,233			10,101
Corporate		3,055			3,065			2,941
Total depreciation	$	29,548		$	26,651		$	27,137

⁽¹⁾

Includes goodwill impairment charge, amortization of intangibles, other costs and other income not allocable to segments. The goodwill impairment charge of $56.6 million for fiscal 2013 was recorded at Corporate. The intangible asset amortization expense for fiscal 2013, 2012 and 2011 was $32.4 million, $29.6 million and $28.0 million, respectively. Corporate results also included income for fair value adjustments to contingent consideration liabilities of $9.6 million, $19.2 million and $1.8 million for 2013, 2012 and 2011, respectively.

	September 29, 2013			September 30, 2012
	(in thousands)
Total Assets
ECS	$	912,996		$	915,571
TSS		673,864			638,405
RCM		435,053			311,051
Corporate (1)		(222,821	)		(193,997	)
Total assets	$	1,799,092		$	1,671,030

⁽¹⁾

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

Geographic Information

	Fiscal Year Ended
	September 29, 2013				September 30, 2012				October 2, 2011
	Revenue		Long-Lived Assets (2)		Revenue		Long-Lived Assets (2)		Revenue		Long-Lived Assets (2)
					(in thousands)
United States	$	1,915,780	$	110,313	$	2,046,700	$	100,958	$	1,976,452	$	102,316
Foreign countries (1)		697,975		90,435		664,375		70,010		596,692		78,198

⁽¹⁾

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

⁽²⁾

Excludes goodwill and intangible assets.

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
	September 29, 2013		September 30, 2012		October 2, 2011
	(in thousands)
Client Sector
International (1)	$	697,975	$	664,375	$	596,692
U.S commercial		693,677		718,457		577,782
U.S. federal government (2)		829,790		1,008,424		1,115,729
U.S. state and local government		392,313		319,819		282,941
Total	$	2,613,755	$	2,711,075	$	2,573,144

⁽¹⁾

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

⁽²⁾

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