Reportable Segments

3 Months Ended

Dec. 27, 2015

Reportable Segments

Reportable Segments

10.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 and industrial 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, remediation, waste management, utilities 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 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 performed in this segment will be substantially complete by the end of fiscal 2016.

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 27, 2015		December 28, 2014
	(in thousands)
Revenue
WEI	$	240,383	$	247,797
RME	315,717		316,276
RCM	20,826		34,430
Elimination of inter-segment revenue	(16,218)		(17,447)
Total revenue	$	560,708	$	581,056
Operating Income (Loss)
WEI	$	20,030	$	21,513
RME	25,443		26,039
RCM	(5,282)		(3,420)
Corporate (1)	(7,261)		(7,520)
Total operating income	$	32,930	$	36,612
Depreciation
WEI	$	1,168	$	1,377
RME	3,533		3,534
RCM	193		660
Corporate	409		1,293
Total depreciation	$	5,303	$	6,864
(1)Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments.

	December 27, 2015		September 27, 2015
	(in thousands)
Total Assets
WEI	$	278,370	$	287,112
RME	395,617		422,133
RCM	45,750		57,612
Corporate (1)	807,757		792,385
Total assets	$	1,527,494	$	1,559,242
(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 27, 2015		December 28, 2014
	(in thousands)
Client Sector
International (1)	$	135,807	$	147,061
U.S. commercial	188,164		173,658
U.S. federal government (2)	165,022		185,711
U.S. state and local government	71,715		74,626
Total	$	560,708	$	581,056
(1)Includes revenue generated from foreign operations, primarily in Canada, and revenue generatedfrom non-U.S. clients. (2)Includes revenue generated under U.S. federal government contracts performed outside the United States.