Reportable Segments

6 Months Ended

Mar. 29, 2015

Reportable Segments

Reportable Segments

10.Reportable Segments

Beginning in the first quarter of fiscal 2015, we reorganized our core operations into our WEI and RME reportable segments.  The results of the wind-down of our non-core construction activities are reported 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 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 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 the 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				Six Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
	(in thousands)
Revenue
WEI	$	223,366	$	223,977	$	457,033	$	453,307
RME	342,185		342,897		673,859		702,161
RCM	18,151		40,282		52,581		122,364
Elimination of inter-segment revenue	(18,939)		(20,871)		(37,654)		(45,699)
Total revenue	$	564,763	$	586,285	$	1,145,819	$	1,232,133

Operating Income (Loss)
WEI	$	15,787	$	18,296	$	37,620	$	40,521
RME	19,751		10,726		45,471		43,985
RCM	5		730		(3,416)		(3,401)
Corporate (1)	(5,145)		16,434		(12,665)		8,799
Total operating income	$	30,398	$	46,186	$	67,010	$	89,904

Depreciation
WEI	$	1,189	$	1,362	$	2,422	$	2,777
RME	3,665		3,708		7,344		7,870
RCM	675		771		1,335		1,569
Corporate (1)	400		737		1,692		1,491
Total depreciation	$	5,929	$	6,578	$	12,793	$	13,707
(1)   Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments.

	March 29, 2015		September 28, 2014
	(in thousands)
Total Assets
WEI	$	253,282	$	302,877
RME	435,039		442,911
RCM	91,418		100,996
Corporate (1)	864,208		929,620
Total assets	$	1,643,947	$	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				Six Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
	(in thousands)
Client Sector
International (1)	$	173,680	$	181,570	$	320,741	$	345,504
U.S. commercial	158,156		147,854		333,339		334,150
U.S. federal government (2)	168,250		178,341		352,436		373,525
U.S. state and local government	64,677		78,520		139,303		178,954
Total	$	564,763	$	586,285	$	1,145,819	$	1,232,133
(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.