Reportable Segments

12 Months Ended

Oct. 02, 2016

Reportable Segments

Reportable Segments

19.         Reportable Segments

              Our reportable segments are described as follows:

              WEI:    WEI provides consulting and engineering services worldwide for a broad range of water and infrastructure-related needs in both developed and emerging economies. WEI supports both public and private clients including federal, state/provincial, and local governments, and global and local commercial clients. The primary markets for WEI's services include water resources analysis and water management, environmental restoration, government consulting, and a broad range of civil infrastructure master planning and engineering design for facilities, transportation, and regional and local development. WEI's services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance.

              RME:    RME provides consulting and engineering services worldwide for a broad range of resource management and energy needs. RME supports both private and public clients, including global industrial and commercial clients, U.S. federal agencies in large scale remediation, and major international development agencies. The primary markets for RME's services include natural resources, energy, international development, remediation, waste management and utilities. RME's services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance. RME also supports EPCM for full service implementation of commercial projects.

              RCM:    We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. The remaining work to be performed in this segment will be substantially completed in fiscal 2017.

              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. In fiscal 2016, the Corporate segment operating losses included $19.5 million of acquisition and integration expenses, as described in Note 5, "Mergers and Acquisitions".

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

Reportable Segments

		Fiscal Year Ended
		October 2, 2016			September 27, 2015			September 28, 2014
		(in thousands)
Revenue
WEI		$	1,028,281		$	993,631		$	1,018,522
RME			1,569,702			1,282,046			1,333,127
RCM			52,150			86,575			221,108
Elimination of inter-segment revenue			(66,664	)		(62,931	)		(88,943	)
Total revenue		$	2,583,469		$	2,299,321		$	2,483,814
Operating Income
WEI		$	95,996		$	93,142		$	93,853
RME			112,202			93,359			84,862
RCM			(11,834	)		(8,614	)		(45,151	)
Corporate (1)			(60,509	)		(90,203	)		20,269
Total operating income		$	135,855		$	87,684		$	153,833
Depreciation
WEI		$	4,797		$	5,335		$	6,302
RME			15,703			13,342			14,089
RCM			736			1,801			2,958
Corporate			1,520			2,632			3,103
Total depreciation		$	22,756		$	23,110		$	26,452
(1)	Includes goodwill and other intangible assets impairment charges, amortization of intangibles, other costs and other income not allocable to segments. The impairment charges of $60.8 million for fiscal 2015 was recorded at Corporate. The intangible asset amortization expense for fiscal 2016, 2015 and 2014 was $22.1 million, $20.2 million and $27.3 million, respectively. Corporate results also included income (loss) for fair value adjustments to contingent consideration liabilities of $(2.8) million, $3.1 million and $58.7 million for fiscal 2016, 2015 and 2014, respectively. Fiscal 2016 also included $19.5 million of acquisition and integration related expenses recorded at Corporate.

	October 2, 2016		September 27, 2015
	(in thousands)
Total Assets
WEI	$	308,438	$	287,112
RME		522,895		422,133
RCM		39,107		57,612
Corporate (1)		930,339		792,385
Total assets	$	1,800,779	$	1,559,242

(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
		October 2, 2016				September 27, 2015				September 28, 2014
		Revenue		Long-Lived Assets (2)		Revenue		Long-Lived Assets (2)		Revenue		Long-Lived Assets (2)
						(in thousands)
United States		$	1,858,551	$	59,334	$	1,734,439	$	61,526	$	1,840,129	$	61,940
Foreign countries (1)			724,918		39,067		564,882		32,230		643,685		38,576
(1)	Includes revenue generated from our foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients. Long-lived assets consist primarily of amounts from our Canadian operations.
(2)	Excludes goodwill and other 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
		October 2, 2016		September 27, 2015		September 28, 2014
		(in thousands)
Client Sector
International (1)		$	724,918	$	564,882	$	643,649
U.S commercial			763,443		736,815		713,266
U.S. federal government (2)			784,368		709,600		772,290
U.S. state and local government			310,740		288,024		354,609
Total		$	2,583,469	$	2,299,321	$	2,483,814
(1)	Includes revenue generated from foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients.
(2)	Includes revenue generated under U.S. federal government contracts performed outside the United States.