Reportable Segments

6 Months Ended

Mar. 27, 2016

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, international development, remediation, waste management and utilities.  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.

RCM:  We report the results of the wind-down of our non-core construction activities in the RCM reportable segment.  The remaining work to be performed in this segment will be substantially complete in fiscal 2017.

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 Corporate segment operating losses in the second quarter and first six months of fiscal 2016 include the $15.9 million of acquisition and integration expenses described in Note 3.

The following tables set forth summarized financial information regarding our reportable segments:

Reportable Segments

	Three Months Ended						Six Months Ended
	March 27, 2016			March 29, 2015			March 27, 2016			March 29, 2015
	(in thousands)
Revenue
WEI	$	226,008		$	237,736		$	466,391		$	485,533
RME	403,949			326,409			719,666			642,685
RCM	10,753			18,151			31,579			52,581
Elimination of inter-segment revenue	(13,326		)	(17,533		)	(29,544		)	(34,980		)
Total revenue	$	627,384		$	564,763		$	1,188,092		$	1,145,819
Operating Income (Loss)
WEI	$	16,391		$	15,455		$	36,420		$	36,968
RME	27,477			20,083			52,920			46,122
RCM	(386		)	5			(5,668		)	(3,416		)
Corporate (1)	(26,832		)	(5,145		)	(34,091		)	(12,664		)
Total operating income	$	16,650		$	30,398		$	49,581		$	67,010
Depreciation
WEI	$	1,203		$	1,338		$	2,371		$	2,715
RME	4,171			3,516			7,705			7,050
RCM	185			675			377			1,336
Corporate (1)	409			400			818			1,692
Total depreciation	$	5,968		$	5,929		$	11,271		$	12,793
(1)Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments.

	March 27, 2016		September 27, 2015
	(in thousands)
Total Assets
WEI	$	280,853	$	287,112
RME	534,578		422,133
RCM	28,965		57,612
Corporate (1)	908,518		792,385
Total assets	$	1,752,914	$	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				Six Months Ended
	March 27, 2016		March 29, 2015		March 27, 2016		March 29, 2015
	(in thousands)
Client Sector
International (1)	$	206,902	$	173,680	$	342,708	$	320,741
U.S. commercial	174,381		157,082		362,545		330,741
U.S. federal government (2)	178,015		169,324		343,037		355,034
U.S. state and local government	68,086		64,677		139,802		139,303
Total	$	627,384	$	564,763	$	1,188,092	$	1,145,819
(1)Includes revenue generated from foreign operations, primarily in Canada and Australia, and revenue generated from non-U.S. clients. (2)Includes revenue generated under U.S. federal government contracts performed outside the United States.