Reportable Segments

6 Months Ended

Mar. 30, 2014

Reportable Segments

Reportable Segments

10.          Reportable Segments

Our reportable segments are as follows:

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.

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.

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 regarding our reportable segments:

Reportable Segments

	Three Months Ended				Six Months Ended
	March 30, 2014		March 31, 2013		March 30, 2014		March 31, 2013
	(in thousands)
Revenue
ECS	$	226,088	$	259,194	$	460,975	$	537,361
TSS	217,295		222,108		437,986		466,032
RCM	164,225		178,499		378,431		336,930
Elimination of inter-segment revenue	(21,323)		(17,802)		(45,259)		(39,779)
Total revenue	$	586,285	$	641,999	$	1,232,133	$	1,300,544

Operating Income (loss)
ECS	$	11,966	$	11,203	$	31,972	$	30,493
TSS	23,284		22,262		46,104		44,605
RCM	(5,497)		14,094		3,030		21,176
Corporate (1)	16,433		(9,892)		8,798		(16,798)
Total operating income	$	46,186	$	37,667	$	89,904	$	79,476

Depreciation
ECS	$	2,037	$	2,587	$	4,213	$	5,213
TSS	585		693		1,169		1,475
RCM	3,219		3,433		6,834		6,035
Corporate	737		809		1,491		1,607
Total depreciation	$	6,578	$	7,522	$	13,707	$	14,330

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

	March 30,2014		September 29,2013
	(in thousands)
Total Assets
ECS	$	883,135	$	912,996
TSS	707,808		673,864
RCM	430,562		435,053
Corporate (1)	(244,473)		(222,821)
Total assets	$	1,777,032	$	1,799,092

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

Major Clients

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

The following table represents our revenue by client sector:

	Three Months Ended				Six Months Ended
	March 30, 2014		March 31, 2013		March 30, 2014		March 31, 2013
	(in thousands)
Client Sector
International (1)	$	181,570	$	196,840	$	345,504	$	364,342
U.S. commercial	147,854		148,296		334,150		321,442
U.S. federal government (2)	178,341		206,297		373,525		433,694
U.S. state and local government	78,520		90,566		178,954		181,066
Total	$	586,285	$	641,999	$	1,232,133	$	1,300,544

(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.