Mergers and Acquisitions (Tables)

12 Months Ended

Oct. 02, 2016

Mergers and Acquisitions

Summary of estimated fair values of assets acquired and liabilities assumed

              The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the respective acquisition dates for our acquisitions completed in fiscal 2016 (in thousands):

Accounts receivable	$	71,515
Other current assets		18,869
Property and equipment		14,218
Goodwill		107,618
Backlog and trade name intangible assets		29,445
Other assets		747
Current liabilities		(77,606	)
Borrowings		(65,086	)
Other long-term liabilities		(4,885	)
Net assets acquired	$	94,835

Summary of consolidated pro forma operating results

	Pro-Forma
	Fiscal Year Ended
	October 2, 2016		September 27, 2015
	(in thousands, except per share data)
Revenue	$	2,714,658	$	2,749,653
Operating income		152,676		73,209
Net income attributable to Tetra Tech		98,871		20,689
Earnings per share attributable to Tetra Tech
Basic	$	1.70	$	0.33
Diluted	$	1.68	$	0.33

Summary of acquisition and integration expenses

	Fiscal Year Ended October 2, 2016
	(in thousands)
Severance including change in control payments	$	10,917
Professional services		5,685
Real estate-related		2,946
Total	$	19,548

Summary of changes in the carrying value of estimated contingent earn-out liabilities

	Fiscal Year Ended
	October 2, 2016			September 27, 2015			September 28, 2014
	(in thousands)
Beginning balance (at fair value)	$	4,169		$	7,030		$	81,789
Estimated earn-out liabilities for acquisitions during the fiscal year		4,745			4,100			6,242
Increases due to re-measurement of fair value reported in interest expense		271			136			1,846
Net increase (decrease) due to re-measurement of fair value reported as losses (gains) in operating income		2,823			(3,113	)		(58,694	)
Foreign exchange impact		–			(785	)		(3,507	)
Earn-out payments:
Reported as cash used in operating activities		–			–			(1,984	)
Reported as cash used in financing activities		(3,251	)		(3,199	)		(18,662	)
Ending balance (at fair value)	$	8,757		$	4,169		$	7,030