Reportable Segments

9 Months Ended

Jun. 26, 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 also 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 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.  In the third quarter and first nine months of fiscal 2016, the Corporate segment operating losses included $1.0 million and $16.9 million of acquisition and integration expenses, respectively, described in Note 3.

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

Reportable Segments

	Three Months Ended				Nine Months Ended
	June 26, 2016		June 28, 2015		June 26, 2016		June 28, 2015
	(in thousands)
Revenue
WEI	$	264,729	$	256,442	$	731,120	$	741,976
RME	414,872		315,417		1,134,538		958,103
RCM	5,202		16,466		36,781		69,046
Elimination of inter-segment revenue	(17,934)		(13,217)		(47,478)		(48,198)
Total revenue	$	666,869	$	575,108	$	1,854,961	$	1,720,927
Operating Income (Loss)
WEI	$	25,206	$	24,988	$	61,627	$	61,956
RME	26,882		23,219		79,802		69,342
RCM	(4,023)		(190)		(9,691)		(3,605)
Corporate (1)	(8,980)		(7,296)		(43,071)		(19,961)
Total operating income	$	39,085	$	40,721	$	88,667	$	107,732
Depreciation
WEI	$	1,223	$	1,358	$	3,594	$	4,072
RME	4,113		3,209		11,818		10,260
RCM	183		237		560		1,573
Corporate (1)	393		515		1,211		2,207
Total depreciation	$	5,912	$	5,319	$	17,183	$	18,112
(1)Includes amortization of intangibles, other costs and other income not allocable to our reportable segments.

	June 26, 2016		September 27, 2015
	(in thousands)
Total Assets
WEI	$	300,493	$	287,112
RME	524,285		422,133
RCM	38,725		57,612
Corporate (1)	950,826		792,385
Total assets	$	1,814,329	$	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				Nine Months Ended
	June 26, 2016		June 28, 2015		June 26, 2016		June 28, 2015
	(in thousands)
Client Sector
International (1)	$	194,616	$	124,951	$	537,324	$	445,691
U.S. commercial	194,089		193,098		556,635		523,839
U.S. federal government (2)	203,663		186,578		546,700		541,613
U.S. state and local government	74,501		70,481		214,302		209,784
Total	$	666,869	$	575,108	$	1,854,961	$	1,720,927
(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.