Reportable Segments

3 Months Ended

Dec. 28, 2014

Reportable Segments

Reportable Segments

10.Reportable Segments

Beginning in the first quarter of fiscal 2015, we reorganized our core operations to better align them with our markets, resulting in two renamed reportable segments.  We now report our water resources, water and wastewater treatment, environment, and infrastructure engineering activities in the WEI reportable segment.  Our RME reportable segment includes our oil and gas, energy, mining, waste management, remediation, utilities, and international development services.  We report the results of the wind-down of our non-core construction activities in the RCM reportable segment.  Prior year amounts for reportable segments have been revised to conform to the current-year presentation.

Our reportable segments are 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 and industrial clients.  The primary markets for WEI’s services include water management, environmental restoration, government consulting, and a broad range of civil infrastructure requirements 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 oil and gas, energy, mining, remediation, utilities, waste management, and international development.  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 supports engineering, procurement and construction management (“EPCM”) for full service implementation of commercial projects, especially for oil and gas, industrial, and mining customers.

RCM:  We report the results of the wind-down of our non-core construction activities in the RCM reportable segment.  We plan to complete all remaining work performed in this segment primarily in fiscal 2015.

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
	December 28, 2014		December 29, 2013
	(in thousands)
Revenue
WEI	$	233,668	$	229,330
RME	331,673		359,263
RCM	34,430		82,082
Elimination of inter-segment revenue	(18,715)		(24,827)
Total revenue	$	581,056	$	645,848
Operating Income (Loss)
WEI	$	21,832	$	22,225
RME	25,720		33,260
RCM	(3,420)		(4,131)
Corporate (1)	(7,520)		(7,636)
Total operating income	$	36,612	$	43,718
Depreciation
WEI	$	1,232	$	1,414
RME	3,679		4,163
RCM	660		798
Corporate	1,293		754
Total depreciation	$	6,864	$	7,129
(1)Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments.

	December 28, 2014		September 28, 2014
	(in thousands)
Total Assets
WEI	$	267,615	$	302,877
RME	421,493		442,911
RCM	112,026		100,996
Corporate (1)	895,002		929,620
Total assets	$	1,696,136	$	1,776,404
(1)Corporate assets consist of intercompany eliminations and assets not allocated to our reportable 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
	December 28, 2014		December 29, 2013
	(in thousands)
Client Sector
International (1)	$	147,061	$	163,933
U.S. commercial	175,183		186,296
U.S. federal government (2)	184,186		195,184
U.S. state and local government	74,626		100,435
Total	$	581,056	$	645,848
(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.