Reportable Segments

3 Months Ended

Jan. 01, 2017

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

Reportable Segments

	Three Months Ended
	January 1, 2017		December 27, 2015
	(in thousands)
Revenue
WEI	$	287,136	$	240,383
RME	396,022		315,717
RCM	8,231		20,826
Elimination of inter-segment revenue	(22,538)		(16,218)
Total revenue	$	668,851	$	560,708
Operating Income
WEI	$	24,979	$	20,030
RME	26,733		25,443
RCM	(3,042)		(5,282)
Corporate (1)	(8,815)		(7,261)
Total operating income	$	39,855	$	32,930

Depreciation
WEI	$	1,165	$	1,168
RME	3,647		3,533
RCM	155		193
Corporate	284		409
Total depreciation	$	5,251	$	5,303

(1)Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments.

	January 1, 2017		October 2, 2016
	(in thousands)
Total Assets
WEI	$	331,947	$	308,438
RME	534,306		522,895
RCM	38,958		39,107
Corporate (1)	895,212		930,339
Total assets	$	1,800,423	$	1,800,779

(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
	January 1, 2017		December 27, 2015
	(in thousands)
Client Sector
International (1)	$	172,457	$	135,807
U.S. commercial	190,266		188,164
U.S. federal government (2)	222,634		165,022
U.S. state and local government	83,494		71,715
Total	$	668,851	$	560,708
(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.