UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark one)
☒    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended April 2, 20211, 2022
☐    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from             to             
Commission File Number 1-7463
JACOBS ENGINEERING GROUP INC.
(Exact name of registrant as specified in its charter)

Delaware95-4081636
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)
1999 Bryan StreetSuite 1200DallasTexas75201
(Address of principal executive offices)(Zip Code)

(214) 583 – 8500
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
_________________________________________________________________
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock$1 par valueJNew York Stock Exchange

Indicate by check-mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:     ☒ Yes    ☐  No

Indicate by check-mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    ☒  Yes    ☐  No
Page 1

Indicate by check-mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check-mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes   ☒  No
Number of shares of common stock outstanding at April 30, 2021: 130,215,39322, 2022: 128,627,268
Page 2

JACOBS ENGINEERING GROUP INC.
INDEX TO FORM 10-Q

Page No.
PART I
Item 1.
34
45
56
67
78
910
1011
Item 2.
3839
Item 3.
51
Item 4.
5152
PART II
Item 1.
5354
Item 1A.
5354
Item 2.
5354
Item 3.
5354
Item 4.
5355
Item 5.
5355
Item 6.
5456
5557


Page 23

Part I - FINANCIAL INFORMATION
Item 1.    Financial Statements.

Page 34

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share information)
(Unaudited)
April 1, 2022October 1, 2021
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents$1,235,422 $1,014,249 
Receivables and contract assets3,302,868 3,101,418 
Prepaid expenses and other152,989 176,228 
Total current assets4,691,279 4,291,895 
Property, Equipment and Improvements, net326,596 353,117 
Other Noncurrent Assets:
Goodwill7,492,015 7,197,000 
Intangibles, net1,553,283 1,565,758 
Deferred income tax assets68,376 103,193 
Operating lease right-of-use assets556,686 650,097 
Miscellaneous495,057 471,549 
Total other noncurrent assets10,165,417 9,987,597 
$15,183,292 $14,632,609 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current maturities of long-term debt$52,911 $53,456 
Accounts payable921,372 908,441 
Accrued liabilities1,955,327 1,533,559 
Operating lease liability162,817 172,414 
Contract liabilities672,265 542,054 
Total current liabilities3,764,692 3,209,924 
Long-term Debt3,196,374 2,839,933 
Liabilities relating to defined benefit pension and retirement plans366,788 418,080 
Deferred income tax liabilities211,341 214,380 
Long-term operating lease liability688,604 758,358 
Other deferred liabilities163,988 559,375 
Commitments and Contingencies00
Redeemable Noncontrolling interests669,527 657,722 
Stockholders’ Equity:
Capital stock:
                Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and
outstanding - none
— — 
                Common stock, $1 par value, authorized - 240,000,000 shares;
issued and outstanding 128,899,796 shares and 128,892,540
shares as of April 1, 2022 and October 1, 2021, respectively
128,900 128,893 
Additional paid-in capital2,667,256 2,590,012 
Retained earnings4,069,664 4,015,578 
Accumulated other comprehensive loss(788,374)(794,442)
Total Jacobs stockholders’ equity6,077,446 5,940,041 
Noncontrolling interests44,532 34,796 
Total Group stockholders’ equity6,121,978 5,974,837 
$15,183,292 $14,632,609 
April 2, 2021October 2, 2020
ASSETS
Current Assets:
Cash and cash equivalents$893,284 $862,424 
Receivables and contract assets3,301,623 3,167,310 
Prepaid expenses and other431,606 162,355 
Investment in equity securities451,405 347,510 
Total current assets5,077,918 4,539,599 
Property, Equipment and Improvements, net360,241 319,371 
Other Noncurrent Assets:
Goodwill7,235,520 5,639,091 
Intangibles, net1,684,682 658,340 
Deferred income tax assets147,218 211,047 
Operating lease right-of-use assets654,419 576,915 
Miscellaneous402,070 409,990 
Total other noncurrent assets10,123,909 7,495,383 
$15,562,068 $12,354,353 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Short-term debt$53,813 $0 
Accounts payable914,408 1,061,754 
Accrued liabilities1,727,219 1,249,883 
Operating lease liability176,253 164,312 
Contract liabilities531,146 465,648 
Total current liabilities3,402,839 2,941,597 
Long-term Debt3,425,852 1,676,941 
Liabilities relating to defined benefit pension and retirement plans555,222 568,176 
Deferred income tax liabilities178,199 3,366 
Long-term operating lease liability783,982 735,202 
Other deferred liabilities585,263 573,404 
Commitments and Contingencies00
Redeemable Noncontrolling interests586,965 0 
Stockholders’ Equity:
Capital stock:
                Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and
outstanding - NaN
0 0 
                Common stock, $1 par value, authorized - 240,000,000 shares;
issued and outstanding 130,172,177 shares and 129,747,783
shares as of April 2, 2021 and October 2, 2020, respectively
130,172 129,748 
Additional paid-in capital2,621,454 2,598,446 
Retained earnings4,125,452 4,020,575 
Accumulated other comprehensive loss(868,639)(933,057)
Total Jacobs stockholders’ equity6,008,439 5,815,712 
Noncontrolling interests35,307 39,955 
Total Group stockholders’ equity6,043,746 5,855,667 
$15,562,068 $12,354,353 

See the accompanying Notes to Consolidated Financial Statements – Unaudited.

Page 45

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Three and Six Months Ended April 1, 2022 and April 2, 2021 and March 27, 2020
(In thousands, except per share information)
(Unaudited)
For the Three Months EndedFor the Six Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Revenues$3,547,873 $3,427,180 $6,929,708 $6,787,229 
Direct cost of contracts(2,780,860)(2,779,045)(5,530,636)(5,494,522)
Gross profit767,013 648,135 1,399,072 1,292,707 
Selling, general and administrative expenses(808,125)(480,357)(1,226,246)(973,582)
Operating (Loss) Profit(41,112)167,778 172,826 319,125 
Other Income (Expense):
Interest income608 985 1,732 1,931 
Interest expense(15,464)(15,154)(32,777)(29,971)
Miscellaneous (expense) income, net(56,313)(330,414)100,047 (213,719)
Total other (expense) income, net(71,169)(344,583)69,002 (241,759)
(Loss) Earnings from Continuing Operations Before Taxes(112,281)(176,805)241,828 77,366 
Income Tax Benefit (Expense) from Continuing Operations20,772 61,122 (66,250)(7,368)
Net (Loss) Earnings of the Group from Continuing Operations(91,509)(115,683)175,578 69,998 
Net Earnings of the Group from Discontinued Operations11,320 29,880 11,305 107,468 
Net (Loss) Earnings of the Group(80,189)(85,803)186,883 177,466 
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations(10,158)(6,284)(20,184)(12,540)
Net Loss Attributable to Redeemable Noncontrolling interests101,392 0 101,392 0 
Net (Loss) Earnings Attributable to Jacobs from Continuing Operations(275)(121,967)256,786 57,458 
Net Earnings (Loss) Attributable to Jacobs$11,045 $(92,087)$268,091 $164,926 
Net Earnings Per Share:
Basic Net (Loss) Earnings from Continuing Operations Per Share$0 $(0.92)$1.97 $0.43 
Basic Net Earnings from Discontinued Operations Per Share$0.09 $0.23 $0.09 $0.81 
Basic Earnings (Loss) Per Share$0.08 $(0.69)$2.06 $1.24 
Diluted Net (Loss) Earnings from Continuing Operations Per Share$0 $(0.92)$1.96 $0.43 
Diluted Net Earnings from Discontinued Operations Per Share$0.09 $0.23 $0.09 $0.80 
Diluted Earnings (Loss) Per Share$0.08 $(0.69)$2.04 $1.23 
See the accompanying Notes to Consolidated Financial Statements - Unaudited.

Page 5

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three and Six Months Ended April 2, 2021 and March 27, 2020
(In thousands)
(Unaudited)
For the Three Months EndedFor the Six Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Net (Loss) Earnings of the Group$(80,189)$(85,803)$186,883 $177,466 
Other Comprehensive Income:
Foreign currency translation adjustment(15,450)(116,575)70,888 (64,278)
Gain on cash flow hedges27,604 0 31,187 18 
Change in pension and retiree medical plan liabilities1,490 28,717 (17,863)12,466 
Other comprehensive income before taxes13,644 (87,858)84,212 (51,794)
Income Tax (Expense) Benefit:
Foreign currency translation adjustment3,409 18,429 (11,036)18,429 
Cash flow hedges(7,315)0 (7,094)0 
Change in pension and retiree medical plan liabilities(838)3,278 (1,664)3,860 
Income Tax (Expense) Benefit:(4,744)21,707 (19,794)22,289 
Net other comprehensive income (loss)8,900 (66,151)64,418 (29,505)
Net Comprehensive (Loss) Income of the Group(71,289)(151,954)251,301 147,961 
Net Earnings Attributable to Noncontrolling Interests(10,158)(6,284)(20,184)(12,540)
Net Loss Attributable to Redeemable Noncontrolling interests101,392 0 101,392 0 
Net Comprehensive (Loss) Income Attributable to Jacobs$19,945 $(158,238)$332,509 $135,421 
For the Three Months EndedFor the Six Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Revenues$3,834,059 $3,547,873 $7,214,684 $6,929,708 
Direct cost of contracts(2,963,649)(2,780,860)(5,547,800)(5,530,636)
Gross profit870,410 767,013 1,666,884 1,399,072 
Selling, general and administrative expenses(704,195)(808,125)(1,323,336)(1,226,246)
Operating Profit (Loss)166,215 (41,112)343,548 172,826 
Other Income (Expense):
Interest income381 608 1,882 1,732 
Interest expense(21,995)(15,464)(41,421)(32,777)
Miscellaneous income (expense), net10,681 (56,313)20,362 100,047 
Total other (expense) income, net(10,933)(71,169)(19,177)69,002 
Earnings (Loss) from Continuing Operations Before Taxes155,282 (112,281)324,371 241,828 
Income Tax (Expense) Benefit from Continuing Operations(46,166)20,772 (62,054)(66,250)
Net Earnings (Loss) of the Group from Continuing Operations109,116 (91,509)262,317 175,578 
Net (Loss) Earnings of the Group from Discontinued Operations(1)11,320 (233)11,305 
Net Earnings (Loss) of the Group109,115 (80,189)262,084 186,883 
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations(10,261)(10,158)(19,514)(20,184)
Net (Earnings) Loss Attributable to Redeemable Noncontrolling interests(10,038)101,392 (19,721)101,392 
Net Earnings (Loss) Attributable to Jacobs from Continuing Operations88,817 (275)223,082 256,786 
Net Earnings Attributable to Jacobs$88,816 $11,045 $222,849 $268,091 
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share$0.69 $— $1.72 $1.97 
Basic Net Earnings from Discontinued Operations Per Share$— $0.09 $— $0.09 
Basic Earnings Per Share$0.69 $0.08 $1.72 $2.06 
Diluted Net Earnings from Continuing Operations Per Share$0.68 $— $1.71 $1.96 
Diluted Net Earnings from Discontinued Operations Per Share$— $0.09 $— $0.09 
Diluted Earnings Per Share$0.68 $0.08 $1.71 $2.04 
See the accompanying Notes to Consolidated Financial Statements - Unaudited.

Page 6

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Three and Six Months Ended April 1, 2022 and April 2, 2021
(In thousands)
(Unaudited)
For the Three Months EndedFor the Six Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Net Earnings (Loss) of the Group$109,115 $(80,189)$262,084 $186,883 
Other Comprehensive Income:
Foreign currency translation adjustment(45,827)(15,450)(54,512)70,888 
Gain on cash flow hedges46,491 27,604 55,346 31,187 
Change in pension and retiree medical plan liabilities12,036 1,490 20,075 (17,863)
Other comprehensive income before taxes12,700 13,644 20,909 84,212 
Income Tax (Expense) Benefit:
Foreign currency translation adjustment(400)3,409 2,590 (11,036)
Cash flow hedges(12,290)(7,315)(15,235)(7,094)
Change in pension and retiree medical plan liabilities(728)(838)(2,196)(1,664)
Income Tax Expense:(13,418)(4,744)(14,841)(19,794)
Net other comprehensive (loss) income(718)8,900 6,068 64,418 
Net Comprehensive Income (Loss) of the Group108,397 (71,289)268,152 251,301 
Net Earnings Attributable to Noncontrolling Interests(10,261)(10,158)(19,514)(20,184)
Net (Earnings) Loss Attributable to Redeemable Noncontrolling interests(10,038)101,392 (19,721)101,392 
Net Comprehensive Income Attributable to Jacobs$88,098 $19,945 $228,917 $332,509 
See the accompanying Notes to Consolidated Financial Statements - Unaudited.

Page 7

JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Three Months Ended April 1, 2022 and April 2, 2021 and March 27, 2020
(In thousands)
(Unaudited)
Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Jacobs Stockholders’ EquityNoncontrolling InterestsTotal Group Stockholders’ Equity
Balances at December 27, 2019$133,001 $2,605,765 $4,145,825 $(880,166)$6,004,425 $57,746 $6,062,171 
Net (loss) earnings— — (92,087)— (92,087)6,284 (85,803)
Foreign currency translation adjustments, net of deferred taxes of $(18,429)— — — (98,146)(98,146)— (98,146)
Pension liability, net of deferred taxes of $(3,278)— — — 31,995 31,995 — 31,995 
Dividends— — (25,453)— (25,453)— (25,453)
Noncontrolling interests - distributions and other— 5,002 — — 5,002 (12,830)(7,828)
Stock based compensation— 9,533 24 — 9,557 — 9,557 
Issuances of equity securities including shares withheld for taxes208 12,294 (190)— 12,312 — 12,312 
Repurchases of equity securities(3,224)(63,177)(219,421)— (285,822)— (285,822)
Balances at March 27, 2020$129,985 $2,569,417 $3,808,698 $(946,317)$5,561,783 $51,200 $5,612,983 
Balances at January 1, 2021$130,035 $2,597,586 $4,249,408 $(877,539)$6,099,490 $43,877 $6,143,367 
Net earnings, excluding $(101.4) million in loss relating to redeemable noncontrolling interests— — 11,045 — 11,045 10,158 21,203 
Foreign currency translation adjustments, net of deferred taxes of $(3,409)— — — (12,041)(12,041)— (12,041)
Pension liability, net of deferred taxes of $838— — — 652 652 — 652 
Gain on derivatives, net of deferred taxes of $7,315— — — 20,289 20,289 — 20,289 
Dividends(27,482)(27,482)— (27,482)
Redeemable Noncontrolling interests redemption value adjustment to Common Shareholders— — (107,238)— (107,238)— (107,238)
Noncontrolling interests - distributions and other— — — — — (18,728)(18,728)
Stock based compensation— 15,136 — — 15,136 — 15,136 
Issuances of equity securities including shares withheld for taxes137 8,732 (133)— 8,736 — 8,736 
Repurchases of equity securities— — (148)— (148)— (148)
Balances at April 2, 2021$130,172 $2,621,454 $4,125,452 $(868,639)$6,008,439 $35,307 $6,043,746 
Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Jacobs Stockholders’ EquityNoncontrolling InterestsTotal Group Stockholders’ Equity
Balances at January 1, 2021$130,035 $2,597,586 $4,249,408 $(877,539)$6,099,490 $43,877 $6,143,367 
Net earnings— — 11,045 — 11,045 10,158 21,203 
Foreign currency translation adjustments, net of deferred taxes of $(3,409)— — — (12,041)(12,041)— (12,041)
Pension liability, net of deferred taxes of $838— — — 652 652 — 652 
Gain on derivatives, net of deferred taxes of $7,315— — — 20,289 20,289 — 20,289 
Dividends— — (27,482)— (27,482)— (27,482)
Redeemable Noncontrolling interests redemption value adjustment to Common Shareholders— — (107,238)— (107,238)— (107,238)
Noncontrolling interests - distributions and other— — — — — (18,728)(18,728)
Stock based compensation— 15,136 — — 15,136 — 15,136 
Issuances of equity securities including shares withheld for taxes137 8,732 (133)— 8,736 — 8,736 
Repurchases of equity securities— — (148)— (148)— (148)
Balances at April 2, 2021$130,172 $2,621,454 $4,125,452 $(868,639)$6,008,439 $35,307 $6,043,746 
Balances at December 31, 2021$129,153 $2,641,059 $4,087,390 $(787,656)$6,069,946 $29,999 $6,099,945 
Net earnings— — 88,816 — 88,816 10,261 99,077 
Foreign currency translation adjustments, net of deferred taxes of $400— — — (46,227)(46,227)— (46,227)
Pension liability, net of deferred taxes of $728— — — 11,308 11,308 — 11,308 
Gain on derivatives, net of deferred taxes of $12,290— — — 34,201 34,201 — 34,201 
Dividends— — (29,871)— (29,871)— (29,871)
Redeemable Noncontrolling interests redemption value adjustment— — (35,117)— (35,117)— (35,117)
Noncontrolling interests - distributions and other— — — — — 4,272 4,272 
Stock based compensation— 18,147 — — 18,147 — 18,147 
Issuances of equity securities including shares withheld for taxes142 16,134 (33)— 16,243 — 16,243 
Repurchases of equity securities(395)(8,084)(41,521)— (50,000)— (50,000)
Balances at April 1, 2022$128,900 $2,667,256 $4,069,664 $(788,374)$6,077,446 $44,532 $6,121,978 
See the accompanying Notes to Consolidated Financial Statements – Unaudited.





Page 78


JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Six Months Ended April 1, 2022 and April 2, 2021 and March 27, 2020
(In thousands)
(Unaudited)
Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Jacobs Stockholders’ EquityNoncontrolling InterestsTotal Group Stockholders’ Equity
Balances at September 27, 2019$132,879 $2,559,450 $3,939,174 $(916,812)$5,714,691 $53,967 $5,768,658 
Net earnings— — 164,926 — 164,926 12,540 177,466 
Foreign currency translation adjustments, net of deferred taxes of $(18,429)— — — (45,849)(45,849)— (45,849)
Pension and retiree medical plan liability, net of deferred taxes of $(3,860)— — — 16,326 16,326 — 16,326 
Gain on derivatives, net of deferred taxes of $0— — — 18 18 — 18 
Dividends— — (25,522)— (25,522)(25,522)
Noncontrolling interests - distributions and other— 5,002 — — 5,002 (15,307)(10,305)
Stock based compensation— 22,733 1,102 — 23,835 — 23,835 
Issuances of equity securities including shares withheld for taxes682 2,179 (8,683)— (5,822)— (5,822)
Repurchases of equity securities(3,576)(19,947)(262,299)— (285,822)— (285,822)
Balances at March 27, 2020$129,985 $2,569,417 $3,808,698 $(946,317)$5,561,783 $51,200 $5,612,983 
Balances at October 2, 2020129,748 2,598,446 4,020,575 (933,057)5,815,712 39,955 5,855,667 
Net earnings, excluding $(101.4) million million in loss relating to redeemable noncontrolling interests— — 268,091 — 268,091 20,184 288,275 
Foreign currency translation adjustments, net of deferred taxes of $11,036— — — 59,852 59,852 — 59,852 
Pension liability, net of deferred taxes of $1,664— — — (19,527)(19,527)— (19,527)
(Loss) Gain on derivatives, net of deferred taxes of $7,094— — — 24,093 24,093 — 24,093 
Dividends— — (27,515)— (27,515)— (27,515)
Redeemable Noncontrolling interests redemption value adjustment to Common Shareholders— — (107,238)— (107,238)— (107,238)
Noncontrolling interests - distributions and other— — — — — (24,832)(24,832)
Stock based compensation— 26,977 — — 26,977 — 26,977 
Issuances of equity securities including shares withheld for taxes675 1,058 (8,790)— (7,057)— (7,057)
Repurchases of equity securities(251)(5,027)(19,671)— (24,949)— (24,949)
Balances at April 2, 2021$130,172 $2,621,454 $4,125,452 $(868,639)$6,008,439 $35,307 $6,043,746 

Common StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Total Jacobs Stockholders’ EquityNoncontrolling InterestsTotal Group Stockholders’ Equity
Balances at October 2, 2020$129,748 $2,598,446 $4,020,575 $(933,057)$5,815,712 $39,955 $5,855,667 
Net earnings— — 268,091 — 268,091 20,184 288,275 
Foreign currency translation adjustments, net of deferred taxes of $11,036— — — 59,852 59,852 — 59,852 
Pension liability, net of deferred taxes of $1,664— — — (19,527)(19,527)— (19,527)
Gain on derivatives, net of deferred taxes of $7,094— — — 24,093 24,093 — 24,093 
Dividends— — (27,515)— (27,515)(27,515)
Redeemable Noncontrolling interests redemption value adjustment to Common Shareholders— — (107,238)— (107,238)— (107,238)
Noncontrolling interests - distributions and other— — — — — (24,832)(24,832)
Stock based compensation— 26,977 — — 26,977 — 26,977 
Issuances of equity securities including shares withheld for taxes675 1,058 (8,790)— (7,057)— (7,057)
Repurchases of equity securities(251)(5,027)(19,671)— (24,949)— (24,949)
Balances at April 2, 2021$130,172 $2,621,454 $4,125,452 $(868,639)$6,008,439 $35,307 $6,043,746 
Balances at October 1, 2021$128,893 $2,590,012 $4,015,578 $(794,442)$5,940,041 $34,796 $5,974,837 
Net earnings— — 222,849 — 222,849 19,514 242,363 
Foreign currency translation adjustments, net of deferred taxes of $(2,590)— — — (51,922)(51,922)— (51,922)
Pension liability, net of deferred taxes of $2,196— — — 17,879 17,879 — 17,879 
Gain on derivatives, net of deferred taxes of $15,235— — — 40,111 40,111 — 40,111 
Dividends— — (29,994)— (29,994)— (29,994)
Redeemable Noncontrolling interests redemption value adjustment— — (50,320)— (50,320)— (50,320)
Repurchase of redeemable noncontrolling interests7,761 7,761 7,761 
Noncontrolling interests - distributions and other— — — — — (9,778)(9,778)
Stock based compensation— 25,161 — — 25,161 — 25,161 
Issuances of equity securities including shares withheld for taxes744 17,040 (11,904)— 5,880 — 5,880 
Repurchases of equity securities(737)35,043 (84,306)— (50,000)— (50,000)
Balances at April 1, 2022$128,900 $2,667,256 $4,069,664 $(788,374)$6,077,446 $44,532 $6,121,978 
See the accompanying Notes to Consolidated Financial Statements – Unaudited.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended April 1, 2022 and April 2, 2021 and March 27, 2020
(In thousands)
(Unaudited)
For the Six Months Ended
April 2, 2021March 27, 2020
Cash Flows from Operating Activities:
Net earnings attributable to the Group$186,883 $177,466 
Adjustments to reconcile net earnings to net cash flows provided by operations:
Depreciation and amortization:
Property, equipment and improvements48,079 44,718 
Intangible assets53,753 43,939 
Gain on sale of ECR business(15,608)(81,910)
(Gain) loss on investment in equity securities(114,443)270,225 
Stock based compensation26,977 23,835 
Equity in earnings of operating ventures, net of return on capital distributions6,353 235 
Loss (gain) on disposals of assets, net353 (247)
Impairment of equity method investment33,197 0 
Loss on pension and retiree medical plan changes0 2,651 
Deferred income taxes41,063 73,440 
Changes in assets and liabilities, excluding the effects of businesses acquired:
Receivables and contract assets, net of contract liabilities73,542 (213,685)
Prepaid expenses and other current assets14,521 (8,777)
Miscellaneous other assets76,401 68,430 
Accounts payable(152,750)(152,665)
Accrued liabilities99,198 (53,567)
 Other deferred liabilities(22,490)(153,508)
      Other, net(4,797)(25,612)
          Net cash provided by operating activities350,232 14,968 
Cash Flows from Investing Activities:
Additions to property and equipment(45,053)(61,337)
Disposals of property and equipment and other assets427 38 
Capital contributions to equity investees, net of return of capital distributions(4,193)(12,358)
Acquisitions of businesses, net of cash acquired(1,741,062)(286,534)
Disposal of investment in equity securities13,027 0 
Proceeds (payments) related to sales of businesses36,360 (5,061)
          Net cash used for investing activities(1,740,494)(365,252)
Cash Flows from Financing Activities:
Proceeds from long-term borrowings3,118,315 2,737,764 
Repayments of long-term borrowings(1,328,283)(826,463)
Proceeds from short-term borrowings0 78 
Repayments of short-term borrowings(7,675)(200,008)
Debt issuance costs(2,697)(1,807)
Proceeds from issuances of common stock18,585 18,920 
Common stock repurchases(24,949)(285,822)
Taxes paid on vested restricted stock(25,642)(24,742)
Cash dividends, including to noncontrolling interests(81,880)(63,530)
            Net cash provided by financing activities1,665,774 1,354,390 
Effect of Exchange Rate Changes28,918 20,705 
Net Increase in Cash and Cash Equivalents and Restricted Cash304,430 1,024,811 
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period862,424 631,068 
Cash and Cash Equivalents, including Restricted Cash at the End of the Period$1,166,854 $1,655,879 
For the Six Months Ended
April 1, 2022April 2, 2021
Cash Flows from Operating Activities:
Net earnings attributable to the Group$262,084 $186,883 
Adjustments to reconcile net earnings to net cash flows provided by operations:
Depreciation and amortization:
Property, equipment and improvements52,620 48,079 
Intangible assets95,338 53,753 
Gain on sale of ECR business— (15,608)
Gain on investment in equity securities— (114,443)
Stock based compensation25,161 26,977 
Equity in earnings of operating ventures, net of return on capital distributions13,280 6,353 
Loss on disposals of assets, net421 353 
Impairment of long-lived assets and equity method investment74,585 33,197 
Deferred income taxes16,040 41,063 
Changes in assets and liabilities, excluding the effects of businesses acquired:
Receivables and contract assets, net of contract liabilities(33,881)73,542 
Prepaid expenses and other current assets15,916 14,521 
Miscellaneous other assets67,201 76,401 
Accounts payable18,448 (152,750)
Accrued liabilities(119,982)99,198 
Other deferred liabilities(33,305)(22,490)
      Other, net(7,670)(4,797)
          Net cash provided by operating activities446,256 350,232 
Cash Flows from Investing Activities:
Additions to property and equipment(48,223)(45,053)
Disposals of property and equipment and other assets1,064 427 
Capital contributions to equity investees, net of return of capital distributions1,082 (4,193)
Acquisitions of businesses, net of cash acquired(412,748)(1,741,062)
Disposal of investment in equity securities— 13,027 
Proceeds related to sales of businesses— 36,360 
          Net cash used for investing activities(458,825)(1,740,494)
Cash Flows from Financing Activities:
Proceeds from long-term borrowings1,519,000 3,118,315 
Repayments of long-term borrowings(1,125,528)(1,328,283)
Proceeds from short-term borrowings— — 
Repayments of short-term borrowings(6,359)(7,675)
Debt issuance costs— (2,697)
Proceeds from issuances of common stock28,187 18,585 
Common stock repurchases(50,000)(24,949)
Taxes paid on vested restricted stock(28,398)(25,642)
Cash dividends to shareholders(57,247)(52,438)
Net (dividends) contributions associated with noncontrolling interests(9,416)(29,442)
Repurchase of redeemable noncontrolling interests(35,095)— 
            Net cash provided by financing activities235,144 1,665,774 
Effect of Exchange Rate Changes(12,792)28,918 
Net Increase in Cash and Cash Equivalents and Restricted Cash209,783 304,430 
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period1,026,575 862,424 
Cash and Cash Equivalents, including Restricted Cash, at the End of the Period$1,236,358 $1,166,854 
See the accompanying Notes to Consolidated Financial Statements – Unaudited.



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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.Basis of Presentation
Unless the context otherwise requires:
•References herein to “Jacobs” are to Jacobs Engineering Group Inc. and its predecessors;
•References herein to the “Company”, “we”, “us” or “our” are to Jacobs Engineering Group Inc. and its consolidated subsidiaries; and
•References herein to the “Group” are to the combined economic interests and activities of the Company and the persons and entities holding noncontrolling interests in our consolidated subsidiaries.
The accompanying consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted. Readers of this Quarterly Report on Form 10-Q should also read our consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended October 2, 20201, 2021 (“20202021 Form 10-K”).
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements at April 2, 2021,1, 2022, and for the three and six month periods ended April 2, 2021.1, 2022.
Our interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.
EffectiveOn February 4, 2022, the beginningCompany acquired StreetLight Data, Inc. ("StreetLight"). StreetLight is a pioneer of mobility analytics who uses its data and machine learning resources to shed light on mobility and enable users to solve complex transportation problems. The Company paid total base consideration of approximately $190.7 million in cash, and issued $0.9 million in equity and $5.2 million in in-the-money stock options to the former owners of StreetLight. The Company also paid off StreetLight's debt of approximately $1.0 million simultaneously with the consummation of the acquisition. The Company has recorded its preliminary purchase price allocation associated with the acquisition, which is summarized in Note 16- Other Business Combinations.
On November 19, 2021, a subsidiary of Jacobs acquired all outstanding shares of common stock of BlackLynx ("BlackLynx"), a provider of high-performance software, to complement Jacobs' portfolio of cyber, intelligence and digital solutions. The Company paid total base consideration of approximately $235.4 million in cash to the former owners of BlackLynx. In addition, the transaction involved the potential payment of future consideration that is contingent upon the achievement of certain revenue and gross margin thresholds being achieved in calendar year 2022. The estimated fair value of the contingent consideration on the acquisition date is $0.4 million. The future contingent consideration will be paid, if and to the extent achieved, in the second quarter of fiscal first quarter 2020,2023. In conjunction with the acquisition, the Company adopted ASU 2016-02, also paid off BlackLynx's debt of approximately $5.3 million simultaneously with the consummation of the acquisition.Leases ("ASC 842"), including the subsequent ASU's that amended and clarified the related guidance. The Company adopted ASC 842 using a modified retrospective approach, and accordinglyhas recorded its preliminary purchase price allocation associated with the new guidance was applied to leases that existed or were entered into after the first day of adoption without adjusting the comparative periods presented. Please refer to Note-13acquisition, which is summarized in Note 16- Leases for required disclosures related to leases.Other Business Combinations.
On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting Group Limited ("PA Consulting"), a UK-based leading innovation and transformation consulting firm. The total consideration paid by the Company was $1.7 billion, funded through cash on hand, proceeds from a new term loan and draws on the Company's existing revolver.revolving credit facility. Further, in connection with the transaction, an additional $266.6$261 million in investment proceeds had not yet been distributed at April 2, 2021the investment date due to continuing employment requirements.requirements of associated management owners. Consequently, this amount representsrepresented compensation expense incurred related to the acquisitioninvestment that is expectedwas expensed subsequent to be paid in the third quarterdate of fiscal 2021,the transaction, and iswas reflected in selling, general and administrative expense on the consolidated income statementand cash from operations for the current fiscal quarter.year ended October 1, 2021. The remaining 35% interest is heldwas acquired by PA Consulting employees, whose redeemable noncontrolling interests had a fair value of $581.1$582.4 million on the closing date.date, including subsequent purchase accounting adjustments. PA Consulting is accounted for as a consolidated subsidiary and as a separate operating segment under U.S. GAAP accounting rules.segment. See Note 15- PA Consulting Business Combination for more discussion on the investment and Note 12- Borrowings for more discussion on the financing for the transaction.
On November 24, 2020, a subsidiary of Jacobs completed the acquisition of Buffalo Group, a leader in advanced cyber and intelligence solutions.solutions, which allows Jacobs to further expand its cyber and intelligence solutions offerings to

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
government clients. The Company paid total consideration of $190.1 million, which was comprised of approximately $182.4 million in cash to the former owners of Buffalo Group and contingent consideration of $7.7 million which is expectedmillion. The contingent consideration was subsequently recognized as an offset to selling, general and administrative expense when it was determined no amounts would be settled in fiscal 2022.paid. In conjunction with the acquisition, the Company assumed the Buffalo Group's debt of approximately $7.7 million. The Company repaid all of the assumed Buffalo Group debt by the end of the first fiscal quarter of 2021. The Company has recorded its preliminary purchase price allocation associated with the acquisition, which is summarized in Note 16- Other Business Combinations.
On March 6, 2020, a subsidiary of Jacobs completed the acquisition of the nuclear consulting, remediation and program management business of John Wood Group, a U.K.-based energy services company, for an enterprise value of £246 million, or approximately $317.9 million, less cash acquired of $24.3 million. The Company has recorded its final purchase price allocation associated with the acquisition, which is summarized in Note 16- Other Business CombinationsCombinations..
On April 26, 2019, Jacobs completed the sale of its Energy, Chemicals and Resources ("ECR") business to Worley Limited ("Worley"), a company incorporated in Australia, ("Worley"), for a purchase price of $3.4 billion consisting of (i) $2.8 billion in

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
cash plus (ii) 58.2 million ordinary shares of Worley, subject to adjustments for changes in working capital and certain other items (the “ECR sale”). As a result of the ECR sale, substantially all ECR-related assets and liabilities were sold (the "Disposal Group"). We determined that the Disposal Group should be reported as discontinued operations in accordance with ASC 210-05, Discontinued Operations because their disposal represents a strategic shift that had a major effect on our operations and financial results. As such, the financial results of the ECR business are reflected in our unaudited Consolidated Statements of Earnings as discontinued operations for all periods presented. As of October 2, 2020,1, 2021, all of the ECR business to be sold under the terms of the ECR sale had been conveyed to Worley and as such, 0no amounts remain held for sale. For further discussion, see Note 17- Sale of Energy, Chemicals and Resources ("ECR") Business to the consolidated financial statements.
2.    Use of Estimates and Assumptions
The preparation of financial statements in conformity with U.S. GAAP requires us to employ estimates and make assumptions that affect the reported amounts of certain assets and liabilities, the revenues and expenses reported for the periods covered by the accompanying consolidated financial statements, and certain amounts disclosed in these Notes to the Consolidated Financial Statements. Although such estimates and assumptions are based on management’s most recent assessment of the underlying facts and circumstances utilizing the most current information available and past experience including considerations for potential impacts of the continuing coronavirus (COVID-19) pandemic, actual results could differ significantly from those estimates and assumptions. Our estimates, judgments, and assumptions are evaluated periodically and adjusted accordingly.
Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 20202021 Form 10-K for a discussion of other significant estimates and assumptions affecting our consolidated financial statements.
3.    Fair Value and Fair Value Measurements
Certain amounts included in the accompanying consolidated financial statements are presented at “fairfair value.” Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the date fair value is determined (the “measurement date”). When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider only those assumptions we believe a typical market participant would consider when pricing an asset or liability. In measuring fair value, we use the following inputs in the order of priority indicated:
Level 1 - Quoted prices in active markets for identical assets or liabilities.
Level 2 - Observable inputs other than quoted prices in active markets included in Level 1, such as (i) quoted prices for similar assets or liabilities; (ii) quoted prices in markets that have insufficient volume or infrequent transactions (e.g., less active markets); and (iii) model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data for substantially the full term of the asset or liability.
Level 3 - Unobservable inputs to the valuation methodology that are significant to the fair value measurement.
Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 20202021 Form 10-K for a more complete discussion of the various items within the consolidated financial statements measured at fair value and the methods used to determine fair value. Please also refer to Note 17- Sale of Energy, Chemicals and Resources for discussion regarding the Company's investment in Worley ordinary shares and Note 19- Commitments and Contingencies and Derivative Financial Instruments for discussion regarding the Company's derivative instruments.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
The net carrying amounts of cash and cash equivalents, trade receivables and payables and short-term debt approximate fair value due to the short-term nature of these instruments. See Note 12- Borrowings for a discussion of the fair value of long-term debt.

Fair value measurements relating to our business combinations are made primarily using Level 3 inputs including discounted cash flow and to the extent applicable, Monte Carlo simulation techniques. Fair value for the identified intangible assets is generally estimated using inputs primarily for the income approach using the multiple period excess earnings method and the relief from royalties method. The significant assumptions used in estimating fair value include (i) revenue projections of the business, including profitability, (ii) attrition rates and (iii) the estimated discount rate that reflects the level of risk associated with receiving future cash flows. Other personal property assets, such as furniture, fixtures and equipment, are valued using the cost approach, which is based on replacement or reproduction costs of the asset less depreciation. The fair value of the contingent consideration is estimated using a Monte Carlo simulation and the significant assumptions used include projections of revenues and probabilities of meeting those projections. Key inputs to the valuation of the noncontrolling interests include projected cash flows and the expected volatility associated with those cash flows.
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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
4.    New Accounting Pronouncements
ASU 2017-04,2020-04, SimplifyingReference Rate Reform, (Topic 848): Facilitation of the TestEffects of Reference Rate Reform on Financial Reporting is intended to provide relief for Goodwill Impairment,entities impacted by reference rate reform and contains provisions and optional expedients designed to simplify requirements around designation of hedging relationships, probability assessments of hedged forecasted transactions and accounting for modifications of contracts that refer to LIBOR or other rates affected by reference rate reform. The guidance is elective and is effective on the date of issuance. ASU 2020-04 is applied prospectively to contract modifications and as of the effective date for existing and new eligible hedging relationships. The guidance is temporary and will generally not be applicable to contract modifications which occur after December 31, 2022. The adoption of the new guidance in the first quarter of fiscal 2022 allowed the Company to continue its British pound denominated interest rate hedge relationships which previously defined LIBOR as the benchmark interest rate and in December 2021 were amended to replace LIBOR with the Sterling Overnight Index Average rate ("SONIA").
ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, is effective for fiscal years beginning after December 15, 2019.2022. ASU 2017-04 removed2021-08 requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the second step of the goodwill impairment test, which requires a hypothetical purchase price allocation. An entity will now recognize a goodwill impairment charge for the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the amount of goodwill allocated to the reporting unit. The adoption of ASU 2017-04 did not have a material impactacquirer on the Company's financial position, results of operations or cash flows.
ASU No. 2016-13, Financial Instruments - Credit Losses ("acquisition date in accordance with ASC 326"): Measurement of Credit Losses on Financial Instruments requires entities to use a current lifetime expected credit loss methodology to measure impairments of certain financial assets. Using606, Revenue from Contracts with Customers. Generally, this methodologynew guidance will result in earlier recognition of losses than under the current incurred loss approach, which requires waiting to recognize a loss until it is probable of having been incurred. There are other provisions withinacquirer recognizing contract assets and contract liabilities at the standard that affect how impairments of other financial assets may besame amounts recorded and presented, and that expand disclosures. This standard was effective beginning withby the acquiree. The Company adopted the new guidance in the first quarter of fiscal quarter 2021. The2022 and the adoption of ASU 326 did not have a materialhad no impact on the Company's financial position, results of operations or cash flows.
5.    Revenue Accounting for Contracts
Disaggregation of Revenues
Our revenues are principally derived from contracts to provide a diverse range of technical, professional, and construction services to a large number of industrial, commercial, and governmental clients. We provide a broad range of engineering, design, and architectural services; construction and construction management services; operations and maintenance services; and process,technical, digital, process, scientific and systems consulting services. We provide our services through offices and subsidiaries located primarily in North America, South America, Europe, the Middle East, India, Australia, Africa, and Asia. We provide our services under cost-reimbursable and fixed-price contracts. Our contracts are with many different customers in numerous industries. Refer to Note 20- Segment Information for additional information on how we disaggregate our revenues by reportable segment.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
The following table further disaggregates our revenue by geographic area for the three and six months ended April 1, 2022 and April 2, 2021 and March 27, 2020 (in thousands):
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Revenues:Revenues: Revenues:
United States United States$2,474,672 $2,543,387 $4,931,712 $5,076,101  United States$2,499,737 $2,474,672 $4,648,289 $4,931,712 
Europe Europe756,474 606,630 1,395,789 1,157,903  Europe937,864 756,474 1,804,216 1,395,789 
Canada Canada53,687 52,251 109,315 107,647  Canada67,152 53,687 132,192 109,315 
Asia Asia28,650 32,454 56,055 62,894  Asia36,533 28,650 68,620 56,055 
India India16,463 10,784 31,010 16,764  India28,844 16,463 50,992 31,010 
Australia and New Zealand Australia and New Zealand159,778 118,850 297,186 248,045  Australia and New Zealand181,650 159,778 359,302 297,186 
Middle East and Africa Middle East and Africa58,149 62,824 108,641 117,875  Middle East and Africa82,279 58,149 151,073 108,641 
TotalTotal$3,547,873 $3,427,180 $6,929,708 $6,787,229 Total$3,834,059 $3,547,873 $7,214,684 $6,929,708 
Contract Liabilities
Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. Revenue recognized for the three and six months ended April 1, 2022 that was previously included in the contract liability balance on October 1, 2021 was $79.6 million and $371.0 million, respectively. Revenue recognized for the three and six months ended April 2, 2021 that was included in the contract liability balance on October 2, 2020 was $96.5 million and $355.6 million respectively. Revenue recognized for the three and six months ended March 27, 2020 that was included in the contract liability balance on September 27, 2019, was $66.4 million and $310.5 million, respectively.
Remaining Performance ObligationsObligation   
The Company’s remaining performance obligations as of April 2, 20211, 2022 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had approximately $15.7$15.2 billion in remaining performance obligations as of April 2, 2021.1, 2022. The Company expects to recognize approximately 48%57% of our remaining performance obligations into revenue within the next twelve months and the remaining 52%43% thereafter.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Although remaining performance obligations reflect business that is considered to be firm, cancellations, scope adjustments, foreign currency exchange fluctuations or deferrals may occur that impact their volume or the expected timing of their recognition. Remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate.
6.     Earnings Per Share and Certain Related Information
Basic and diluted earnings per share (“EPS”) are computed using the two-class method, which is an earnings allocation method that determines EPS for common shares and participating securities. The undistributed earnings are allocated between common shares and participating securities as if all earnings had been distributed during the period. Participating securities and common shares have equal rights to undistributed earnings. Net earnings used for the purpose of determining basic and diluted EPS is determined by taking net earnings less earnings available to participating securities. During the three and six months ended April 2, 2021, the Company did not have any outstanding participating securities.
The following table reconciles the denominator used to compute basic EPS to the denominator used to compute diluted EPS for the three and six months ended April 2, 20211, 2022 and March 27, 2020 (in thousands):

Page 13
JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Three Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Numerator for Basic and Diluted EPS:
Net (loss) earnings attributable to Jacobs from continuing operations$(275)$(121,967)$256,786 $57,458 
Net earnings from continuing operations allocated to participating securities0 0 0 (20)
Net (loss) earnings from continuing operations allocated to common stock for EPS calculation$(275)$(121,967)$256,786 $57,438 
Net earnings attributable to Jacobs from discontinued operations$11,320 $29,880 $11,305 $107,468 
Net earnings from discontinued operations allocated to participating securities0 0 0 (38)
Net earnings from discontinued operations allocated to common stock for EPS calculation$11,320 $29,880 $11,305 $107,430 
Net earnings (loss) allocated to common stock for EPS calculation$11,045 $(92,087)$268,091 $164,868 
Denominator for Basic and Diluted EPS:
Weighted average basic shares130,262 132,556 130,115 132,879 
Shares allocated to participating securities0 (25)0 (47)
Shares used for calculating basic EPS attributable to common stock130,262 132,531 130,115 132,832 
Effect of dilutive securities:
Stock compensation plans (1)0 0 1,042 1,258 
Shares used for calculating diluted EPS attributable to common stock130,262 132,531 131,157 134,090 
Net Earnings (Loss) Per Share:
Basic Net (Loss) Earnings from Continuing Operations Per Share$0 $(0.92)$1.97 $0.43 
Basic Net Earnings from Discontinued Operations Per Share$0.09 $0.23 $0.09 $0.81 
Basic Earnings (Loss) Per Share$0.08 $(0.69)$2.06 $1.24 
Diluted Net (Loss) Earnings from Continuing Operations Per Share$0 $(0.92)$1.96 $0.43 
Diluted Net Earnings from Discontinued Operations Per Share$0.09 $0.23 $0.09 $0.80 
Diluted Earnings (Loss) Per Share$0.08 $(0.69)$2.04 $1.23 
(1)For the three months ended April 2, 2021 and March 27, 2020, because net (loss) earnings from continuing operations allocated to common stock for EPS was a loss, the effect of antidilutive securities of 902 and 1,032, respectively, were excluded from the denominator in calculating diluted EPS.
Share Repurchases(in thousands):

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Three Months EndedSix Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Numerator for Basic and Diluted EPS:
Net earnings (loss) from continuing operations allocated to common stock for EPS calculation$88,817 $(275)$223,082 $256,786 
Net (loss) earnings from discontinued operations allocated to common stock for EPS calculation$(1)$11,320 $(233)$11,305 
Net earnings allocated to common stock for EPS calculation$88,816 $11,045 $222,849 $268,091 
Denominator for Basic and Diluted EPS:
Shares used for calculating basic EPS attributable to common stock129,333 130,262 129,337 130,115 
Effect of dilutive securities:
Stock compensation plans (1)640 — 796 1,042 
Shares used for calculating diluted EPS attributable to common stock129,973 130,262 130,133 131,157 
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share$0.69 $— $1.72 $1.97 
Basic Net Earnings from Discontinued Operations Per Share$— $0.09 $— $0.09 
Basic Earnings Per Share$0.69 $0.08 $1.72 $2.06 
Diluted Net Earnings from Continuing Operations Per Share$0.68 $— $1.71 $1.96 
Diluted Net Earnings from Discontinued Operations Per Share$— $0.09 $— $0.09 
Diluted Earnings Per Share$0.68 $0.08 $1.71 $2.04 
(1) For the three months ended April 2, 2021, because net earnings (loss) from continuing operations allocated to common stock for EPS was a loss, the effect of antidilutive securities of 902 equivalent shares were excluded from the denominator in calculating diluted EPS.
Share Repurchases
On January 17, 2019, the Company’s Board of Directors authorized a share repurchase program of up to $1.0 billion of the Company’s common stock, to expire on January 16, 2022 (the "2019 Repurchase Authorization"). On January 16, 2020, the Company's Board of Directors authorized an additionala share repurchase program of up to $1.0 billion of the Company's common stock, to expire on January 15, 2023 (the "2020 Repurchase Authorization"). In the fourth quarter of fiscal 2021, the Company initiated an accelerated share repurchase program by advancing $250 million to a financial institution in a privately negotiated transaction, with final non-cash settlement on the program during the first quarter of fiscal 2022 of 342,054 shares.
The following table summarizes the activity under the 2019 and 2020 Repurchase AuthorizationsAuthorization through the second fiscal quarter of 2021:2022:
Amount Authorized
(2019 and 2020 Repurchase Authorizations)		Average Price Per Share (1)Shares RepurchasedTotal Shares Retired
$2,000,000,000$98.81251,001251,001

Amount Authorized
(2020 Repurchase Authorization)		Average Price Per Share (1)Total Shares RetiredShares Repurchased
$1,000,000,000$131.62737,369737,369

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

(1)Includes commissions paid and calculated at the average price per share

As a precautionary measure in light of the COVID-19 pandemic, the Company temporarily suspended purchases under the share repurchase plan in March 2020, with such suspension remaining in effect through the fiscal third quarter of 2020. During the fourth fiscal quarter of 2020, the Company resumed share repurchases on a limited basis while we continue to monitor developments in fiscal 2021 with the pandemic. As of April 2, 2021,1, 2022, the Company has $33.1$732.9 million remaining under the 2019 Repurchase Authorization and $1.0 billion remaining under the 2020 Repurchase Authorization.
TheOur share repurchase programs doprogram does not obligate the Company to purchase any shares. Share repurchases may be executed through various means including, without limitation, accelerated share repurchases, open market transactions, privately negotiated transactions, purchases pursuant to Rule 10b5-1 plans or otherwise. The authorization for the share repurchase programs may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. The timing, amount and manner of share repurchases may depend upon market conditions and economic circumstances, availability of investment opportunities, the availability and costs of financing, currency fluctuations, the market price of the Company's common stock, other uses of capital and other factors.
Dividend ProgramDividends
On April 22, 2021,28, 2022, the Company’s Board of Directors declared a quarterly dividend of $0.21$0.23 per share of the Company’s common stock to be paid on June 25, 2021,24, 2022, to shareholders of record on the close of business on May 28, 2021.27, 2022. Future dividend declarations are subject to reviewreview and approval by the Company’s Board of Directors. Dividends paidpaid through the second fiscal quarter of 20212022 and the preceding fiscal year are as follows:
Declaration DateRecord DatePayment DateCash Amount (per share)
January 26, 2022February 25, 2022March 25, 2022$0.23
September 23, 2021October 15, 2021October 29, 2021$0.21
July 14, 2021July 30, 2021August 27, 2021$0.21
April 22, 2021May 28, 2021June 25, 2021$0.21
January 27, 2021February 26, 2021March 26, 2021$0.21
September 17, 2020October 2, 2020October 30, 2020$0.19
July 9, 2020July 24, 2020August 21, 2020$0.19
May 5, 2020May 20, 2020June 17, 2020$0.19
January 16, 2020January 31, 2020February 28, 2020$0.19
September 19, 2019October 4, 2019November 1, 2019$0.17


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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
7.    Goodwill and Intangibles
The carrying value of goodwill associated with continuing operations and appearing in the accompanying Consolidated Balance Sheets at April 2, 20211, 2022 and October 2, 20201, 2021 was as follows (in thousands):
Critical Mission SolutionsPeople & Places SolutionsPA ConsultingTotal
Balance October 2, 2020$2,409,081 $3,230,010 $0 $5,639,091 
Acquired139,550 0 1,442,770 1,582,320 
Foreign Exchange Impact13,504 17,986 (10,546)20,944 
Post-Acquisition Adjustments(6,835)0 0 (6,835)
Balance April 2, 2021$2,555,300 $3,247,996 $1,432,224 $7,235,520 
Critical Mission SolutionsPeople & Places SolutionsPA ConsultingTotal
Balance October 1, 2021$2,550,631 $3,240,783 $1,405,586 $7,197,000 
Acquired199,587 147,568 — 347,155 
Foreign currency translation(3,477)(7,165)(47,481)(58,123)
Post-Acquisition Adjustments— — 5,983 5,983 
Balance April 1, 2022$2,746,741 $3,381,186 $1,364,088 $7,492,015 
The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at April 2, 20211, 2022 and October 2, 20201, 2021 (in thousands):
Customer Relationships, Contracts and BacklogDeveloped TechnologyTrade NamesTotalCustomer Relationships, Contracts and BacklogDeveloped TechnologyTrade NamesTotal
Balances October 2, 2020$614,045 $43,572 $723 $658,340 
Balances October 1, 2021Balances October 1, 2021$1,309,061 $40,020 $216,677 $1,565,758 
AmortizationAmortization(50,625)(1,975)(1,153)(53,753)Amortization(86,394)(3,312)(5,632)(95,338)
AcquiredAcquired842,769 1,508 230,331 1,074,608 Acquired69,574 42,787 — 112,361 
Post-Acquisition Adjustments3,000 0 0 3,000 
Foreign currency translationForeign currency translation3,739 413 (1,665)2,487 Foreign currency translation(22,484)(190)(6,824)(29,498)
Balances April 2, 2021$1,412,928 $43,518 $228,236 $1,684,682 
Balances April 1, 2022Balances April 1, 2022$1,269,757 $79,305 $204,221 $1,553,283 
The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 20212022 and for the succeeding years. The amounts below include preliminary amortization estimates for the Streetlight and BlackLynx opening balance sheet fair values that are still subject to change.
Fiscal Year(in millions)
2021$95.9 
2022185.9 
2023185.9 
2024185.9 
2025185.5 
Thereafter845.6 
Total$1,684.7 
Fiscal Year(in millions)
2022$98.4 
2023196.7 
2024196.5 
2025196.0 
2026180.9 
Thereafter684.8 
Total$1,553.3 


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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
8.    Receivables and Contract Assets
The following table presents the components of receivables appearing in the accompanying Consolidated Balance Sheets at April 2, 20211, 2022 and October 2, 2020,1, 2021, as well as certain other related information (in thousands):
April 2, 2021October 2, 2020April 1, 2022October 1, 2021
Components of receivables and contract assets:Components of receivables and contract assets:Components of receivables and contract assets:
Amounts billed, netAmounts billed, net$1,357,622 $1,294,204 Amounts billed, net$1,403,454 $1,278,087 
Unbilled receivables and otherUnbilled receivables and other1,458,718 1,449,184 Unbilled receivables and other1,416,713 1,343,588 
Contract assetsContract assets485,283 423,922 Contract assets482,701 479,743 
Total receivables and contract assets, netTotal receivables and contract assets, net$3,301,623 $3,167,310 Total receivables and contract assets, net$3,302,868 $3,101,418 
Other information about receivables:Other information about receivables:Other information about receivables:
Amounts due from the United States federal government, included above, net of advanced billings$609,272 $600,207 
Amounts due from the United States federal government, included above, net of contract liabilitiesAmounts due from the United States federal government, included above, net of contract liabilities$739,201 $563,009 
Amounts billed, net consist of amounts invoiced to clients in accordance with the terms of our client contracts and are shown net of an allowance for doubtful accounts. We anticipate that substantially all of such billed amounts will be collected over the next twelve months.
Unbilled receivables and other, which represent an unconditional right to payment subject only to the passage of time, are reclassified to amounts billed when they are billed under the terms of the contract. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months.
Contract assets represent unbilled amounts where the right to payment is subject to more than merely the passage of time and includes performance-based incentives and services that have been provided aheadin advance of agreed contractual milestones. Contract assets are transferred to unbilled receivables when the right to consideration becomes unconditional and are transferred to amounts billed upon invoicing. The increase in contract assets was a result of normal business activity and not materially impacted by any other factors.
9.     Accumulated Other Comprehensive Income
The following table presents the Company's roll forward of accumulated other comprehensive income (loss) after-tax as of April 2, 20211, 2022 (in thousands):
Change in Pension LiabilitiesForeign Currency Translation AdjustmentGain/(Loss) on Cash Flow HedgesTotalChange in Net Pension ObligationForeign Currency Translation AdjustmentGain/(Loss) on Cash Flow HedgesTotal
Balance at October 2, 2020$(498,726)$(419,715)$(14,616)$(933,057)
Balance at October 1, 2021Balance at October 1, 2021$(394,561)$(407,240)$7,359 $(794,442)
Other comprehensive income (loss)Other comprehensive income (loss)(19,527)59,852 20,422 60,747 Other comprehensive income (loss)17,879 (51,922)36,536 2,493 
Reclassifications from accumulated other comprehensive income (loss)Reclassifications from accumulated other comprehensive income (loss)0 0 3,671 3,671 Reclassifications from accumulated other comprehensive income (loss)— — 3,575 3,575 
Balance at April 2, 2021$(518,253)$(359,863)$9,477 $(868,639)
Balance at April 1, 2022Balance at April 1, 2022$(376,682)$(459,162)$47,470 $(788,374)


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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
10.    Income Taxes
The Company’s effective tax rates from continuing operations for the three months ended April 1, 2022 and April 2, 2021 were 29.7% and March 27, 2020 were 18.5% and 34.6%, respectively. The Company’s effective tax rate from continuing operations forrespectively, with the change due primarily to the absence of a $7.7 million benefit the Company recognized in the three months ended April 2, 2021 was lower than the corresponding rate in the prior period primarily due to a tax expense of $15.0 million attributable to a nondeductible compensation related charge associated with the PA Consulting acquisition, resulting in a decrease in tax rate as a consequence of an overall pre-tax loss position. The current period expense was offset by a $7.7 million benefit related to a change in the Company’s assertion about the indefinite reinvestment of certain foreign unremitted earnings in India. Also, forIndia, other discrete foreign tax items and higher state taxes, partly offset by the absence in the current year of certain nondeductible compensation related charges associated with our PA Consulting investment that occurred in the three months ended March 27, 2020, the effective tax rate was impacted by amended returns for foreign tax credits and research and development credits, an India withholding tax rate change and an Internal Revenue Code section 179D energy credit. The Company is continuing to accrue taxes related to all other foreign earnings, except for certain entities in Canada.
month period of fiscal 2021.
The Company's effective tax rates from continuing operations for the six months ended April 1, 2022 and April 2, 2021 were 19.1% and March 27, 2020 were 27.4% and 9.5%, respectively. The Company’s effectiverespectively, with the decrease primarily due to a tax rate from continuing operationsbenefit of $15.7 million related to the release of valuation allowance on foreign tax credits for the six months ended April 2, 2021 was higher than the corresponding rate in the prior period primarily due to the current PA Consulting compensation expense charge mentioned above1, 2022 and $7.4 million attributable to US foreign inclusions. Also contributing to the higher year to date rate is the absence of prior year favorable benefitcertain non-deductible pre-tax compensation charges associated with our investment in PA Consulting for the six month period in fiscal 2021, partly offset by the absence of $5.8 million from amended returns for foreign tax credits and research and development credits, a $4.1 million benefit related to an India withholding tax rate change and $7.0 millionthe 2021 period benefit from an Internal Revenue Code section 179D energy credit for the period ending March 27, 2020. The current year increase was further offset by a $3.6 million excess tax benefit attributable to stock compensation and a $12.1 million benefit related to a change in the Company’s assertion about indefinite reinvestment of certain foreignIndia unremitted earnings in Canada and India.
reinvestment item mentioned above.
See Note 17 - Sale of Energy, Chemicals and Resources ("ECR") Business for further information on the Company's discontinued operations reporting for the sale of the ECR business.
The amount of income taxes the Company pays is subject to ongoing audits by tax jurisdictions around the world. In the normal course of business, the Company is subject to examination by tax authorities throughout the world, including such major jurisdictions as Australia, Canada, India, the Netherlands, the United Kingdom and the United States. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts, and circumstances existing at the time. The Company believes that it has adequately provided for reasonably foreseeable outcomes related to these matters. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate.

11.    Joint Ventures, VIEs and Other Investments
We execute certain contracts jointly with third parties through various forms of joint ventures. Although the joint ventures own and hold the contracts with the clients, the services required by the contracts are typically performed by us and our joint venture partners, or by other subcontractors under subcontracting agreements with the joint ventures. Many of these joint ventures are formed for a specific project. The assets of our joint ventures generally consist almost entirely of cash and receivables (representing amounts due from clients), and the liabilities of our joint ventures generally consist almost entirely of amounts due to the joint venture partners (for services provided by the partners to the joint ventures under their individual subcontracts) and other subcontractors. Many of the joint ventures are deemed to be variable interest entities (“VIE”) because they lack sufficient equity to finance the activities of the joint venture.
The assets of a joint venture are restricted for use to the obligations of the particular joint venture and are not available for general operations of the Company. Our risk of loss on these arrangements is usually shared with our partners. The liability of each partner is usually joint and several, which means that each partner may become liable for the entire risk of loss on the project. Furthermore, on some of our projects, the Company has granted guarantees that may encumber both our contracting subsidiary company and the Company for the entire risk of loss on the project. The Company is unable to estimate the maximum potential amount of future payments that we could be required to make under outstanding performance guarantees related to joint venture projects due to a number of factors, including but not limited to, the nature and extent of any contractual defaults by our joint venture partners, resource availability, potential performance delays caused by the defaults, the location of the projects, and the terms of the related contracts. Refer to Note 19 - Commitments and Contingencies and Derivative Financial Instruments for further discussion relating to performance guarantees.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
For consolidated joint ventures, the entire amount of the services performed, and the costs associated with these services, including the services provided by the other joint venture partners, are included in the Company's resultresults of operations. Likewise, the entire amount of each of the assets and liabilities are included in the Company’s Consolidated Balance Sheets. For the consolidated VIEs, the carrying value of assets and liabilities was $262.4$386.9 million and $199.5$255.8 million, respectively, as of April 2, 20211, 2022 and $261.8$289.8 million and $190.3$220.8 million, respectively, as of October 2, 2020.1, 2021. There are no consolidated VIEs that have debt or credit facilities.
On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting, a UK-based leading innovation and transformation consulting firm. The remaining 35% interest is heldwas acquired by PA Consulting employees. PA Consulting is accounted for as a consolidated subsidiary under U.S. GAAP accounting rules. See Note 15-15 - PA Consulting Business Combination for more discussion on the acquisition.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Unconsolidated joint ventures are accounted for under proportionate consolidation or the equity method. Proportionate consolidation is used for joint ventures that include unincorporated legal entities and activities of the joint venture that are construction-related. For those joint ventures accounted for under proportionate consolidation, only the Company’s pro rata share of assets, liabilities, revenue, and costs are included in the Company’s balance sheet and results of operations.
For the proportionate consolidated VIEs, the carrying value of assets and liabilities was $41.6$119.5 million and $44.9$146.1 million, respectively, as of April 2, 2021,1, 2022, and $64.1$115.1 million and $63.0$129.5 million, respectively, as of October 2, 2020.1, 2021. For those joint ventures accounted for under the equity method, the Company's investment balances for the joint venture are included in Other Noncurrent Assets: Miscellaneous on the balance sheet and the Company’s pro rata share of net income is included in revenue. In limited cases, there are basis differences between the equity in the joint venture and the Company's investment created when the Company purchased its share of the joint venture. These basis differences are amortized based on an internal allocation to underlying net assets, excluding allocations to goodwill. As of April 2, 2021,1, 2022, the Company’s equity method investments exceeded its share of venture net assets by $35.9$36.3 million. Our investments in equity method joint ventures on the Consolidated Balance Sheets as of April 2, 20211, 2022 and October 2, 20201, 2021 were $131.4$105.4 million and $161.3$121.3 million, respectively. During the three months ended April 1, 2022 and April 2, 2021, and March 27, 2020, we recognized income from equity method joint ventures of $11.9$12.5 million and $18.8$11.9 million, respectively. During the six months ended April 1, 2022 and April 2, 2021, and March 27, 2020, we recognized income from equity method joint ventures of $30.2$19.3 million and $36.0$30.2 million, respectively.
Accounts receivable from unconsolidated joint ventures accounted for under the equity method is $10.4$22.4 million and $8.3$19.7 million as of April 2, 20211, 2022 and October 2, 2020,1, 2021, respectively.
The Company currently holdsheld a 24.5% interest in AWE Management Ltd ("AWE ML") that iswas accounted for under the equity method, and the carrying value of the Company’s investment as of October 2, 2020 was approximately $38 million. As of October 2, 2020,method. AWE ML was previously under a contractual operating arrangement with the UK Ministry of Defence (MoD) with multiple years remaining under the arrangement. Subsequent to year end, on November 2, 2020,arrangement, and during fiscal 2021, the MoD unexpectedly announced plans to change its current operating agreements with AWE ML that would resultresulted in the early termination of the current contract in 2021. During the six months ended April 2, 2021, the Company recorded an other-than-temporary impairmentsimpairment charge on its investment in AWE ML in the amount of $33.2 million, which iswas included in miscellaneous income (expense), net in the consolidated statement of earnings.earnings as a result of the contract termination.
At October 2, 2020, theThe Company held a cost method investment in C3.ai, Inc. ("C3") and in the first quarter of approximately $2.5 million. On December 9, 2020,fiscal 2021, C3 completed an initial public offering and as a result the Company now carriescarried its investment in C3 at fair value, with mark to market changes reflected in net income as it is an investment in equity securities with a readily determinable fair value based on quoted market prices. In connection withDuring fiscal 2021 and subsequent to the IPO, the Company became subject to a 180-day lock-up period, which restricts sales of thesold all shares subject to certain conditions that permit partial share sales based on C3's share performance during the lock-up period. The Company sold 153,374 sharesowned in the current quarter, the maximum allowable shares under the lock-up period discussed above, netting a realized gain of $12.5 million. The fair value of the Company's investment at April 2, 2021 was $38.0 million and is included in investment in equity securities in the consolidated balance sheet.C3. Dividend income, and unrealized gains and lossesrelated realized gains on changes in fair value and as a resultdisposal of salesthese shares of C3 shares are$48.6 million were recognized in miscellaneous income (expense), net, in the consolidated statement of earnings. Quoted market prices are available for these securities in an active market, however a discount is applied to accountearnings for the lock-up period restrictions and therefore the investment is categorized as a Levelsix months ended April 2, input.2021.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
12.    Borrowings
At April 2, 20211, 2022 and October 2, 2020,1, 2021, long-term debt consisted of the following (principal amounts in thousands):
Interest RateMaturityApril 2, 2021October 2, 2020Interest RateMaturityApril 1, 2022October 1, 2021
Revolving Credit FacilityRevolving Credit FacilityLIBOR + applicable margin (1)March 2024$862,794 $152,794 Revolving Credit FacilityBenchmark + applicable margin (1) (2)March 2024$747,794 $327,794 
2021 Term Loan Facility2021 Term Loan FacilityLIBOR + applicable margin (2)March 20241,100,250 0 2021 Term Loan FacilityBenchmark + applicable margin (1) (3)March 20241,053,385 1,081,724 
2020 Term Loan Facility2020 Term Loan FacilityLIBOR + applicable margin (3)March 2025 (4)1,022,438 1,025,826 2020 Term Loan FacilityBenchmark + applicable margin (1) (4)March 2025 (5)952,402 988,940 
Fixed-rate notes due:Fixed-rate notes due:Fixed-rate notes due:
Senior Notes, Series ASenior Notes, Series A4.27%May 2025190,000 190,000 Senior Notes, Series A4.27%May 2025190,000 190,000 
Senior Notes, Series BSenior Notes, Series B4.42%May 2028180,000 180,000 Senior Notes, Series B4.42%May 2028180,000 180,000 
Senior Notes, Series CSenior Notes, Series C4.52%May 2030130,000 130,000 Senior Notes, Series C4.52%May 2030130,000 130,000 
Less: Current Portion(5)Less: Current Portion(5)(53,813)0 Less: Current Portion(5)(52,911)(53,456)
Less: Deferred Financing FeesLess: Deferred Financing Fees(5,817)(1,679)Less: Deferred Financing Fees(4,296)(5,069)
Total Long-term debt, netTotal Long-term debt, net$3,425,852 $1,676,941 Total Long-term debt, net$3,196,374 $2,839,933 
(1)During the six months ended April 1, 2022, the aggregate principal amounts denominated in British pounds under the Revolving Credit Facility, 2021 Term Loan Facility and 2020 Term Loan Facility transitioned from underlying LIBOR benchmarked rates to SONIA rates. Borrowings denominated in U.S. dollars remained benchmarked to LIBOR rates.
(2)Depending on the Company’s Consolidated Leverage Ratio (as defined in the credit agreement governing the Revolving Credit Facility (defined below)), U.S. dollar denominated borrowings under the Revolving Credit Facility bear interest at either a eurocurrency rate plus a margin of between 0.875% and 1.625% or a base rate plus a margin of between 0% and 0.625%, including applicable margins.. The applicable LIBOR rates including applicable margins at April 2, 20211, 2022 and October 2, 20201, 2021 were approximately 1.34%1.82% and 1.39%1.45%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.875% and 1.625%. There were no amounts drawn in British pounds as of April 1, 2022.
(2)(3)Depending on the Company’s Consolidated Leverage Ratio (as defined in the credit agreement governing the 2021 Term Loan Facility (defined below)), U.S. dollar denominated borrowings under the 2021 Term Loan Facility bear interest at either a eurocurrency rate plus a margin of between 0.875%and 1.625% or a base rate plus a margin of between 0% and 0.625%, including applicable margins.. The applicable LIBOR rate including applicable marginmargins for borrowings denominated in U.S. dollars at April 2,1, 2022 and October 1, 2021 was approximately 1.56%1.68% and 1.43%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.875% and 1.625%, which was approximately 2.10% at April 1, 2022.
(3)(4)Depending on the Company’s Consolidated Leverage Ratio (as defined in the credit agreement governing the 2020 Term Loan Facility (defined below)), U.S. dollar denominated borrowings under the 2020 Term Loan Facility bear interest at either a eurocurrency rate plus a margin of between 0.875%and 1.5% or a base rate plus a margin of between 0% and 0.5%, including applicable margins.. The applicable LIBOR rates including applicable margins for borrowings denominated in U.S. dollars at April 2, 20211, 2022 and October 2, 20201, 2021 were approximately 1.34%1.82% and 1.37%1.45%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.875% and 1.625%, which was approximately 2.10% at April 1, 2022.
(4)(5)The 2020 Term Loan requires quarterly principal repayments of 1.25%, or $9.125 million and £3.125 million, of the aggregate initial principal amount borrowed.
On February 7, 2014, Jacobs and certain of its subsidiaries entered into a $1.6 billion long-term unsecured, revolving credit facility (as amended, the “2014 Revolving Credit Facility”) with a syndicate of U.S. and international banks and financial institutions. On March 27, 2019, the Company entered into a second amended and restated credit agreement (the "Revolving Credit Facility"), which amended and restated the 2014 Revolving Credit Facility by, among other things, (a) extending the maturity date of the credit facility to March 27, 2024, (b) increasing the facility amount to $2.25 billion (with an accordion feature that allows a further increase of the facility amount up to $3.25 billion), (c) eliminating the covenants restricting investments, joint ventures and acquisitions by the Company and its subsidiaries and (d) adjusting the financial covenants to eliminate the net worth covenant upon the removal of the same covenant from the Company’s existing Note Purchase Agreement (defined below). We were in compliance with the covenants under the Revolving Credit Facility at April 2, 2021.1, 2022.
On December 16, 2020, Jacobs entered into a first amendment to the Revolving Credit Facility, which provides for, among other things, (a) administrative changes allowing a one-time limited conditionality draw under the Revolving Credit Facility in connection with the March 2, 2021 investment by the Company, indirectly through a subsidiary of the Company, of a majority interest in PA Consulting, a private limited company organized under the laws of England and Wales and (b) an increase in the interest rate applicable margin to 1.625% per annum if the Consolidated Leverage Ratio (as defined in the Revolving Credit Facility) of the Company is equal to or greater than 3.00 to 1.00.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
The Revolving Credit Facility permits the Company to borrow under 2 separate tranches in U.S. dollars, certain specified foreign currencies, and any other currency that may be approved in accordance with the terms of the Revolving Credit Facility. The Revolving Credit Facility also provides for a financial letter of credit sub facility of $400.0 million, permits performance letters of credit, and provides for a $50.0 million sub facility for swing line loans. Letters of credit are subject to fees based on the Company’s Consolidated Leverage Ratio. The Company pays a facility fee of between 0.08% and 0.23% per annum depending on the Company’s Consolidated Leverage Ratio.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
On March 25, 2020, the Company entered into an unsecured term loan facility (the “2020 Term Loan Facility”) with a syndicate of financial institutions as lenders. Under the 2020 Term Loan Facility, the Company borrowed an aggregate principal amount of $730.0 million and one of the Company's U.K. subsidiaries borrowed an aggregate principal amount of £250.0 million. The proceeds of the term loans were used to repay an existing term loan with a maturity date of June 2020 and for general corporate purposes. The 2020 Term Loan Facility contains affirmative and negative covenants and events of default customary for financings of this type that are consistent with those included in the Revolving Credit Facility.
During fiscal 2020, the Company entered into interest rate and cross currency derivative contracts to swap a portion of our variable rate debt to fixed rate debt. See Note 19- Commitments and Contingencies and Derivative Financial Instruments for discussion regarding the Company's derivative instruments.
On January 20, 2021, the Company entered into an unsecured delayed draw term loan facility (the “2021 Term Loan Facility”) with a syndicate of financial institutions as lenders. Under the 2021 Term Loan Facility, the Company borrowed an aggregate principal amount of $200.0 million and £650.0 million. The proceeds of the term loans were used primarily to fund the Company's investment in PA Consulting. The 2021 Term Loan Facility contains affirmative and negative covenants and events of default customary for financings of this type that are consistent with those included in the Revolving Credit Facility and the 2020 Term Loan Facility.
The 2020 Term Loan Facility and the 2021 Term Loan Facility are together referred to as the "Term Loan Facilities". We were in compliance with the covenants under the Term Loan Facilities at April 2, 2021.1, 2022.
On March 12, 2018, Jacobs entered into a note purchase agreement (as amended, the "Note Purchase Agreement") with respect to the issuance and sale in a private placement transaction of $500 million in the aggregate principal amount of the Company’s senior notes in three series (collectively, the “Senior Notes”). The Note Purchase Agreement provides that if the Company's consolidated leverage ratio exceeds a certain amount, the interest on the Senior Notes may increase by 75 basis points. The Senior Notes may be prepaid at any time subject to a make-whole premium. The sale of the Senior Notes closed on May 15, 2018. The Company used the net proceeds from the offering of Senior Notes to repay certain existing indebtedness and for other general corporate purposes. The Note Purchase Agreement contains affirmative, negative and financial covenants customary for financings of this type, including, among other things, covenants to maintain a minimum consolidated net worth and maximum consolidated leverage ratio and limitations on certain other liens, mergers, dispositions and transactions with affiliates. In addition, the Note Purchase Agreement contains customary events of default. We were in compliance with the covenants under the Note Purchase Agreement at April 2, 2021.1, 2022.
We believe the carrying value of the Revolving Credit Facility, the Term Loan Facilities and other debt outstanding approximates fair value based on the interest rates and scheduled maturities applicable to the outstanding borrowings. The fair value of the Senior Notes is estimated to be $545.9$507.6 million at April 2, 2021,1, 2022, based on Level 2 inputs. The fair value is determined by discounting future cash flows using interest rates available for issuances with similar terms and average maturities.
The Company has issued $1.7 million in letters of credit under the Revolving Credit Facility, leaving $1.391.50 billion of available borrowing capacity under the Revolving Credit Facility at April 2, 2021.1, 2022. In addition, the Company had issued $261.9$272.9 million under separate, committed and uncommitted letter-of-credit facilities for total issued letters of credit of $263.6274.6 million at April 2, 2021.1, 2022.
13.    Leases
The Company’s right-of use assets and lease liabilities relate to real estate, project assets used in connection with long-term construction contracts, IT assets and vehicles. The Company’s leases have remaining lease terms of one year to thirteen years. The Company’s lease obligations are primarily for the use of office space and are primarily operating leases.

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Certain of the Company’s leases contain renewal, extension, or termination options. The Company assesses each option on an individual basis and will only include options reasonably certain of exercise in the lease term. The Company generally considers the base term to be the term provided in the contract. None of the Company’s lease agreements contain material options to purchase the lease property, material residual value guarantees, or material restrictions or covenants
Long-term project asset and vehicle leases (leases with terms greater than twelve months), along with all real estate and IT asset leases, are recorded on the consolidated balance sheet at the present value of the minimum lease payments not yet paid, net of impairments taken. Because the Company primarily acts as a lessee and the rates implicit in its leases are not readily determinable, the Company generally uses its incremental borrowing rate on the lease

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commencement date to calculate the present value of future lease payments. Certain leases include payments that are based solely on an index or rate. These variable lease payments are included in the calculation of the right-of-use ("ROU") asset and lease liability and are initially measured using the index or rate at the lease commencement date. Other variable lease payments, such as payments based on use and for property taxes, insurance, or common area maintenance that are based on actual assessments are excluded from the ROU asset and lease liability and are expensed as incurred. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease, such as commissions.
Certain lease contracts contain nonlease components such as maintenance and utilities. The Company has made an accounting policy election, as allowed under ASC 842-10-15-37 and discussed above, to capitalize both the lease component and nonlease components of its contracts as a single lease component for all of its right-of-use assets.
Short-term project asset and vehicle leases (project asset and vehicle leases with an initial term of twelve months or less or leases that are cancellable by the lessee and lessor without significant penalties) are not recorded on the consolidated balance sheet and are expensed on a straight-line basis over the lease term. The majority of the Company’s short-term leases relate to equipment used on construction projects. These leases are entered into at agreed upon hourly, daily, weekly or monthly rental rates for an unspecified duration and typically have a termination for convenience provision. Such equipment leases are considered short-term in nature unless it is reasonably certain that the equipment will be leased for a term greater than twelve months.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
The components of lease expense (reflected in selling, general and administrative expenses) for the three and six months ended April 1, 2022 and April 2, 2021 and March 27, 2020 were as follows (in thousands):
Three Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Lease cost
Operating lease cost$40,806 $43,652 $80,250 $87,732 
Variable lease cost7,235 8,202 15,418 16,799 
Sublease income(3,532)(3,850)(6,928)(7,184)
Total lease cost$44,509 $48,004 $88,740 $97,347 
Three Months EndedSix Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Lease expense
Operating lease expense$37,213 $40,806 $77,751 $80,250 
Variable lease expense8,854 7,235 15,939 15,418 
Sublease income(3,922)(3,532)(7,590)(6,928)
Total lease expense$42,145 $44,509 $86,100 $88,740 
Supplemental information related to the Company's leases for the six months ended April 2, 20211, 2022 was as follows (in thousands):
Six Months Ended
Six Months EndedApril 1, 2022
Cash paid for amounts included in the measurements of lease liabilitiesCash paid for amounts included in the measurements of lease liabilities$100,932Cash paid for amounts included in the measurements of lease liabilities$119,031
Right-of-use assets obtained in exchange for new operating lease liabilitiesRight-of-use assets obtained in exchange for new operating lease liabilities$134,265Right-of-use assets obtained in exchange for new operating lease liabilities$27,838
Weighted average remaining lease term - operating leasesWeighted average remaining lease term - operating leases7 yearsWeighted average remaining lease term - operating leases6.6 years
Weighted average discount rate - operating leasesWeighted average discount rate - operating leases2.7%Weighted average discount rate - operating leases2.7%
Total remaining lease payments under the Company's leases for the remainder of fiscal 2022 and for the succeeding years is as follows (in thousands):
Fiscal YearOperating Leases
2022$97,173 
2023165,900 
2024150,293 
2025126,608 
2026108,533 
Thereafter284,941 
933,448 
Less Interest(82,027)
$851,421 

Right-of-Use and Other Long-Lived Asset Impairment

During fiscal 2022, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives during the current fiscal year resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360.

As a result of the analysis, the Company recognized an impairment loss during the six month period of fiscal 2022 of $74.6 million, which is included in selling, general and administrative expenses in the accompanying statement of earnings for the current year-to-date period. The impairment loss recorded includes $56.6 million related to right-of-use lease assets and $18.0 million related to other long-lived assets, including property, equipment and improvements and leasehold improvements.


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TotalThe fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease payments underperiods and discount rates that reflect the Company's leases for the remainderlevel of fiscal 2021 and for the succeeding years is as follows (in thousands):
Fiscal YearOperating Leases
2021$106,480 
2022184,090 
2023162,249 
2024142,347 
2025122,324 
Thereafter344,411 
1,061,901 
Less Interest(101,666)
$960,235 

risk associated with receiving future cash flows.
14.    Pension and Other Postretirement Benefit Plans
The following table presents the components of net periodic pension benefit recognized in earnings during the three and six months ended April 1, 2022 and April 2, 2021 and March 27, 2020 (in thousands):
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Component:Component:Component:
Service costService cost$1,735 $1,465 $3,471 $2,930 Service cost$1,709 $1,735 $3,418 $3,471 
Interest costInterest cost11,785 13,031 23,569 26,062 Interest cost13,784 11,785 27,568 23,569 
Expected return on plan assetsExpected return on plan assets(25,427)(27,665)(50,855)(55,330)Expected return on plan assets(23,263)(25,427)(46,526)(50,855)
Amortization of previously unrecognized itemsAmortization of previously unrecognized items4,032 3,110 8,064 6,220 Amortization of previously unrecognized items3,092 4,032 6,184 8,064 
Plan Amendment and settlement loss (gain)0 0 0 2,651 
Total net periodic pension benefit recognizedTotal net periodic pension benefit recognized$(7,875)$(10,059)$(15,751)$(17,467)Total net periodic pension benefit recognized$(4,678)$(7,875)$(9,356)$(15,751)
The service cost component of net periodic pension benefit is presented in the same line item as other compensation costs (direct cost of contracts and selling, general and administrative expenses) and the other components of net periodic pension expense are presented in miscellaneous income (expense), net on the Consolidated Statements of Earnings. In the first fiscal quarter of 2020, the Company incurred a settlement loss on one of its U.S. defined benefit plans of approximately $2.7 million.
On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting, a UK-based leading innovation and transformation consulting firm. PA Consulting has defined benefit plans that Jacobs now consolidates. See Note 15- PA Consulting Business Combination for more discussion on the investment and the related defined benefit plans.
The following table presents certain information regarding the Company’s cash contributions to our pension plans for fiscal 20212022 (in thousands):
Cash contributions made during the first six months of fiscal 20212022$20,25416,761 
Cash contributions projected for the remainder of fiscal 2021202223,39321,960 
Total$43,64738,721 


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
15.    PA Consulting Business Combination
Deal Summary, Opening Balance Sheet and Pro Forma Financial Information
On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting, a UK-based leading innovation and transformation consulting firm. The total consideration paid by the Company was $1.7 billion, funded through cash on hand, proceeds from a new term loan and draws on the Company's existing revolver.Revolving Credit Facility. Further, in connection with the transaction, an estimated additional $266.6$261 million in investment proceeds had not yet been distributed at April 2, 2021the investment date due to continuing employment requirements.requirements of associated management owners. Consequently, this amount representsrepresented compensation expense incurred related to the acquisitioninvestment that is expectedwas expensed subsequent to be paid in the third quarterdate of fiscal 2021,the transaction, and iswas reflected in selling, general and administrative expense on the consolidated income statementand cash from operations for the current fiscal quarter.year ended October 1, 2021. Approximately $267 million was recorded in the second quarter of fiscal 2021, with approximately $6 million of the estimated charges forfeited by employees that left the Company before payment and the net cash impact recorded in the third quarter of fiscal 2021. The remaining 35% interest is heldwas acquired by PA Consulting employees, whose redeemable noncontrolling interests had a fair value of $581.1$582.4 million on the closing date.date, including subsequent purchase accounting adjustments. PA Consulting is accounted for as a consolidated subsidiary and as a separate operating segment under U.S. GAAP accounting rules.segment. See Note 12-12 - Borrowings for more discussion on the financing for the transaction.
The following summarizes the fair values of PA Consulting's assets acquired and liabilities assumed as of the acquisition date (in millions):
AssetsAssetsAssets
Cash and cash equivalentsCash and cash equivalents$134.9 Cash and cash equivalents$134.9 
ReceivablesReceivables165.0 Receivables166.5 
Property, equipment and improvements, netProperty, equipment and improvements, net39.2 Property, equipment and improvements, net40.5 
GoodwillGoodwill1,442.8 Goodwill1,454.3 
Identifiable intangible assetsIdentifiable intangible assets1,003.6 Identifiable intangible assets1,004.2 
Prepaid expenses and other current assetsPrepaid expenses and other current assets9.5 Prepaid expenses and other current assets9.5 
Miscellaneous long term assetsMiscellaneous long term assets83.7 Miscellaneous long term assets84.0 
Total AssetsTotal Assets$2,878.7 Total Assets$2,893.9 
LiabilitiesLiabilitiesLiabilities
Accounts payableAccounts payable$5.0 Accounts payable$6.5 
Accrued liabilities and other current liabilitiesAccrued liabilities and other current liabilities344.8 Accrued liabilities and other current liabilities355.1 
Other long term liabilitiesOther long term liabilities245.9 Other long term liabilities248.0 
Total LiabilitiesTotal Liabilities$595.7Total Liabilities$609.6
Redeemable Noncontrolling interestsRedeemable Noncontrolling interests581.1 Redeemable Noncontrolling interests582.4 
Net assets acquiredNet assets acquired$1,701.9 Net assets acquired$1,701.9 

The purchase price allocation is based upon preliminary information and is subject to change when additional information is obtained. Goodwill recognized results from a substantial assembled workforce, which does not qualify for separate recognition, as well as expected future economic benefits. None of the goodwill recognized is expected to be deductible for tax purposes. The Company has not completed its final assessment of the fair values of PA Consulting's assets acquired and liabilities assumed. TheSince the initial preliminary estimates reported in the second quarter of fiscal 2021, the Company has updated certain provisional amounts reflected in the final purchase price allocation, could resultas summarized in adjustments to certainthe estimated fair values of PA Consulting assets acquired and liabilities including the residual amount allocatedassumed above. See below for further discussion on updates to goodwill. redeemable noncontrolling interests.
Identifiable intangibles are customer relationships, contracts and backlog and trade name and have estimated lives ranging from 9 to 20 years (weighted average life of approximately 12 years).
Fair value measurements relating to PA Consulting are made primarily using Level 3 inputs including discounted cash flow techniques. Fair value is estimated using inputs primarily from the income approach, which include the use of both the multiple period excess earnings method and the relief from royalties method. The significant assumptions used in estimating fair value include (i) the estimated life the asset will contribute to cash flows, such as attrition rate of customers or remaining contractual terms, (ii) profitability and (iii) the estimated discount rate that reflects the level of risk associated with receiving future cash flows. Other personal property assets, such as buildings, furniture, fixtures and equipment, are valued using the cost approach, which is based on estimates of replacement cost.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Pre-tax transaction costs associated with the PA Consulting investment in the accompanying Consolidated Statements of Earnings for the six months ended April 2, 2021 were $33.5 million.
The following presents summarized unaudited pro forma operating results of Jacobs from continuing operations assuming that the Company had the PA Consulting investment at September 28, 2019. These pro forma operating results are presented for illustrative purposes only and are not indicative of the operating results that would have been achieved had the related events occurred (in millions, except per share data):
For the Six Months Ended
April 2, 2021March 27, 2020
Revenues$7,341.4 $7,184.9 
Net earnings of the Group$449.9 $(238.0)
Net earnings (loss) attributable to Jacobs$337.7 $(157.0)
Net earnings (loss) attributable to Jacobs per share:
Basic earnings (loss) per share$2.60 $(1.18)
Diluted earnings (loss) per share$2.58 $(1.17)
For the Six Months Ended
April 2, 2021
Revenues$7,341.4 
Net earnings (loss) of the Group$449.9 
Net earnings attributable to Jacobs$337.7 
Net earnings attributable to Jacobs per share:
Basic earnings per share$2.60 
Diluted earnings per share$2.58 
Included in the table above are charges relating to transaction expenses, a nonrecurring compensation charge and other items that are removed fromIncome tax expense for the six months-month pro forma period ended April 2, 2021 and are reflected in the prior fiscal year due to the assumed timing of the transaction. Also, income tax (expense) benefit for the six-month pro forma periods ended April 2, 2021 and March 27, 2020 was $(122.1) million and $44.9 million, respectively.was $(122.1) million.


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Redeemable Noncontrolling InterestInterests
In connection with the PA Consulting investment, the Company recorded redeemable noncontrolling interests, of approximately $581.1 million,including subsequent purchase accounting adjustments, representing the noncontrolling interest holders' 35% equity interestinterests in the form of commonpreferred and preferredcommon shares of PA Consulting, with substantially all of the value associated with these interests allocable to the preferred shares. The preferred shares are entitled to a cumulative compounding 12% dividend based on
During the outstanding preferred share subscription price. These interest holders have certain option rights to put the common and preferred share interests back to the Company at fair value. Additionally, the Company has an option to call the interests in certain circumstances. Because the interests are redeemable at the optionfirst quarter of the holders and not solely within the control of the Company, the Company classified the interests in redeemable noncontrolling interests within its Consolidated Balance Sheet at their acquisition date fair values. Such fair values were estimated based on an assessment of the economic rights and characteristics of each instrument in the capital structure and a market approach analysis, looking at the transaction and the dynamics of that acquisition. Key inputs include the price paid by each independent party and the rights on the instruments acquired. The optional redemption features may become exercisable no earlier than four years from the closing date of thefiscal 2022, PA Consulting investment.
The Company has concluded these interests are probablerepurchased certain shares of becoming redeemable with these interests measured at the greater of (i) the redemption amount that would be paid if settlement occurred at the balance sheet date, or (ii) the historical value resulting from the original acquisition date fair value plus or minus any earnings or loss attribution amounts, including dividends. The amount of the redemption value in excess of the historical values of the interests is recognized as an increase to redeemable noncontrolling interest holders for $35.1 million in cash. The difference between the cash purchase price and a charge to retained earnings, except for amounts related to preferred shares, which, if are incurredthe recorded book value of these repurchased interests was recorded in the future, are reflected as adjustments to net earnings (loss) attributable to Jacobs.Company’s consolidated retained earnings. There were no such repurchases in the second quarter of fiscal 2022.
Changes in the redeemable noncontrolling interest duringinterests during the three six months ended April 2, 20211, 2022 are as follows (in thousands):
Fair value of redeemable noncontrolling interestsBalance at acquisitionOctober 1, 2021$581,119657,722 
Cumulative Accrued Preferred Dividend to Preference Shareholders5,84433,927 
Attribution of Preferred Dividend to Common Shareholders(5,844)(33,927)
Net lossincome attributable to redeemable noncontrolling interestinterests to Common Shareholders(101,392)19,721 
Redeemable Noncontrolling interests redemption value adjustment to Common Shareholders107,23850,320 
Repurchase of redeemable noncontrolling interests(42,856)
Cumulative translation adjustment and other(15,380)
Balance at April 2, 20211, 2022$586,965669,527 

In addition, certain employees and nonemployees of PA Consulting are expectedeligible to receive equity basedequity-based incentive grants in the future under the terms of the applicable agreements.
Employee Benefit Trust Defined Contribution Plans and Defined Benefit Plans

PA Consulting is party to an employee benefit trust arrangement, defined contribution plans and defined benefit plans.
PA Consulting is party to an employee benefit trust that is a separately administered discretionary trust for the benefit of employees and areis consolidated under US GAAP.U.S. GAAP. At April 2, 2021, the1, 2022, the Company held $273.6$0.9 million in cash within the employee benefit trust that is restricted from general use and is included in prepaid expenses and other current assets on the consolidated balance sheet.
The PA Consulting defined benefit plans include UK and Germany based plans. The UK arrangement is a defined benefit plan which has been closed to new participants since 1998 and is expected to wind down in the current fiscal year. Prior to the investment in PA Consulting, PA Consulting completed a pension buy-in transaction for the primary UK defined benefit pension plan where the assets of the plan were invested in a bulk-purchase annuity policy with an insurance company. As such, the UK defined benefit plan is fully funded.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Regarding the defined contribution plans, PA Consulting matches a certain amount on behalf of the employees and pays the administration costs, which are both recognized in the income statement in the period in which they become payable.

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16.    Other Business Combinations
StreetLight Data, Inc.
On February 4, 2022, the Company acquired StreetLight Data, Inc. ("StreetLight"). StreetLight is a pioneer of mobility analytics who uses its data and machine learning resources to shed light on mobility and enable users to solve complex transportation problems. The Company paid total base consideration of approximately $190.7 million in cash, and issued $0.9 million in equity and $5.2 million in in-the-money stock options to the former owners of StreetLight. The Company also paid off StreetLight's debt of approximately $1.0 million simultaneously with the consummation of the acquisition. The following summarizes the fair values of StreetLight's assets acquired and liabilities assumed as of the acquisition date (in millions):
Assets
Cash and cash equivalents$7.3 
Receivables5.2 
Property, equipment and improvements, net0.1 
Goodwill147.6 
Identifiable intangible assets63.9 
Prepaid expenses and other current assets2.0 
Total Assets$226.1 
Liabilities
Accounts payable, accrued expenses and other current liabilities$23.1 
Other long term liabilities6.2 
Total Liabilities29.3 
Net assets acquired$196.8 
The purchase price allocation is based upon preliminary information and is subject to change when additional information is obtained. Goodwill recognized results from a substantial assembled workforce, which does not qualify for separate recognition, as well as expected future synergies from combining operations. None of the goodwill recognized is expected to be deductible for tax purposes. The Company has not completed its final assessment of the fair values of StreetLight's assets acquired and liabilities assumed. The final purchase price allocation could result in adjustments to certain assets and liabilities, including the residual amount allocated to goodwill. 
Identifiable intangibles are technology and customer relationships, contracts and backlog and have estimated lives of 5 and 9 years, respectively.
No summarized unaudited pro forma results are provided for the StreetLight acquisition due to the immateriality of this acquisition relative to the Company's consolidated financial position and results of operations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
BlackLynx
On November 19, 2021, a subsidiary of Jacobs acquired all outstanding shares of common stock of BlackLynx, a provider of high-performance software, to complement Jacobs' portfolio of cyber, intelligence and digital solutions. The Company paid total base consideration of approximately $235.4 million in cash to the former owners of BlackLynx. In addition, the transaction involved the potential payment of future consideration that is contingent upon the achievement of certain revenue and gross margin thresholds being achieved in calendar year 2022. The estimated fair value of the contingent consideration on the acquisition date is $0.4 million. The future contingent consideration will be paid, if and to the extent achieved, in second quarter of fiscal 2023. In conjunction with the acquisition, the Company also paid off BlackLynx's debt of approximately $5.3 million simultaneously with the consummation of the acquisition.The following summarizes the fair values of BlackLynx's assets acquired and liabilities assumed as of the acquisition date (in millions):
Assets
Cash and cash equivalents$5.1 
Receivables7.7 
Property, equipment and improvements, net0.8 
Goodwill199.6 
Identifiable intangible assets48.5 
Prepaid expenses and other current assets3.2 
Miscellaneous long term assets13.5 
Total Assets$278.4 
Liabilities
Accounts payable, accrued expenses and other current liabilities19.5 
Other long term liabilities23.1 
Total Liabilities42.6 
Net assets acquired$235.8 
The purchase price allocation is based upon preliminary information and is subject to change when additional information is obtained. Goodwill recognized results from a substantial assembled workforce, which does not qualify for separate recognition, as well as expected future synergies from combining operations. None of the goodwill recognized is expected to be deductible for tax purposes. The Company has not completed its final assessment of the fair values of BlackLynx's assets acquired and liabilities assumed. Since the initial preliminary estimates reported in the first quarter of fiscal 2021, the Company has updated certain amounts reflected in the preliminary purchase price allocation, as summarized in the fair values of BlackLynx's assets acquired and liabilities assumed as of the acquisition date set forth above, the majority of which related to reclassifications between goodwill and intangibles and for deferred taxes.
The final purchase price allocation could result in additional adjustments to certain assets and liabilities, including the residual amount allocated to goodwill. 
Identifiable intangibles are technology and customer relationships, contracts and backlog and have estimated lives of 11 years and 6 years, respectively.
No summarized unaudited pro forma results are provided for the BlackLynx acquisition due to the immateriality of this acquisition relative to the Company's consolidated financial position and results of operations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Buffalo Group
On November 24, 2020, a subsidiary of Jacobs completed the acquisition of Buffalo Group, a leader in advanced cyber and intelligence solutions.solutions, which allows Jacobs to further expand its cyber and intelligence solutions offerings to government clients. The Company paid total consideration of $190.1 million, which was comprised of approximately $182.4 million in cash to the former owners of Buffalo Group and contingent consideration of $7.7 million which is expected to be settledmillion. The contingent consideration was subsequently recognized in fiscal 2022.2021 as an offset to selling, general and administrative expense when it was determined no amounts would be paid. In conjunction with the acquisition, the Company assumed the Buffalo Group's debt of approximately $7.7 million. The Company repaid all of the assumed Buffalo Group debt by the end of the first fiscal quarter of 2021. The acquisition of Buffalo Group allows Jacobs to further expand its cyber and intelligence solutions offering to government clients. The following summarizes the fair values of The Buffalo Group's assets acquired and liabilities assumed as of the acquisition date (in millions):
 
Assets
Cash and cash equivalents$8.4 
Receivables19.2 
Property, equipment and improvements, net2.3 
Goodwill130.7 
Identifiable intangible assets74.0 
Prepaid expenses and other current assets6.2 
Total Assets$240.8 
Liabilities
Accounts payable, accrued expenses and other current liabilities$46.9 
Other long term liabilities3.8 
Total Liabilities50.7
Net assets acquired$190.1 
The purchase price allocation is based upon preliminary information and is subject to change when additional information is obtained. Goodwill recognized results from a substantial assembled workforce, which does not qualify for separate recognition, as well as expected future synergies from combining operations. All of the goodwill recognized is expected to be deductible for tax purposes, given the acquisition was structured as an asset acquisition.acquisition for tax purposes. The Company has not completed its final assessment of the fair values of Buffalo Group's assets acquired and liabilities assumed. The final purchase price allocation could result in adjustments to certain assets and liabilities, including the residual amount allocated to goodwill. 
Identifiable intangibles are customer relationships, contracts and backlog and have estimated lives of 9 years.
Fair value measurements relating to the Buffalo Group are made primarily using Level 3 inputs including discounted cash flow and Monte Carlo simulation techniques. Fair value for the identified intangible assets is estimated using inputs primarily for the income approach, which include the use of both the multiple period excess earnings method and the relief from royalties method. The significant assumptions used in estimating fair value include (i) the estimated life the asset will contribute to cash flows, such as attrition rate of customers or remaining contractual terms, (ii) profitability and (iii) the estimated discount rate that reflects the level of risk associated with receiving future cash flows. Other personal property assets, such as furniture, fixtures and equipment, are valued using the cost approach, which is based on replacement or reproduction costs of the asset less depreciation. The fair value of the contingent consideration is estimated using a Monte Carlo simulation and the significant assumptions used include projections of revenues for Buffalo Group through fiscal 2021 and probabilities of meeting those projections.
No summarized unaudited pro forma results are provided for the Buffalo Group due to the immateriality of this acquisition relative to the Company's consolidated financial position and results of operations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
John Wood Group's Nuclear Business
On March 6, 2020, a subsidiary of Jacobs completed the acquisition of the nuclear consulting, remediation and program management business of John Wood Group, a U.K.-based energy services company, for an enterprise value of £246 million, or approximately $317.9 million, less cash acquired of $24.3 million, as updated for additional working capital adjustments. The John Wood Group nuclear business allows Jacobs to further expand its lifecycle nuclear services business. The following summarizes the fair values of John Wood Group's assets acquired and liabilities assumed as of the acquisition date (in millions):
Assets
Cash and cash equivalents$24.3 
Receivables74.2 
Other current assets3.8 
Property, equipment and improvements, net8.3 
Goodwill207.8 
Identifiable intangible assets80.0 
Miscellaneous19.4 
Total Assets$417.8 
Liabilities
Accounts payable, accrued expenses and other current liabilities$71.4 
Long term liabilities28.5 
Total Liabilities99.9
Net assets acquired$317.9 
Goodwill recognized results from a substantial assembled workforce, which does not qualify for separate recognition, as well as expected future synergies from combining operations. None of the goodwill recognized is expected to be deductible for tax purposes. The Company has completed its final assessment of the fair values of the acquired assets and liabilities of John Wood Group's nuclear business. Since the initial preliminary estimates reported in the secondfirst quarter of fiscal 2020,2021, the Company has updated certain amounts reflected in the final purchase price allocation, as summarized in the fair values of John WoodBuffalo Group's nuclear business assets acquired and liabilities assumed as of the acquisition date as set forth above.
Identifiable intangibles includeare customer relationships, contracts and backlog and developed technology. The customer relationships, contracts and backlog intangible represents the fair value of existing contracts, underlying customer relationships and backlog. The customer relationships, contracts and backlog intangible and the developed technology intangible have estimated lives of 12 and 15 years, respectively.
Fair value measurements relating to the John Wood Group nuclear business are made primarily using Level 3 inputs including discounted cash flow techniques. Fair value is estimated using inputs primarily for the income approach, which include the use of both the multiple period excess earnings method and the relief from royalties method. The significant assumptions used in estimating fair value include (i) the estimated life the asset will contribute to cash flows, such as attrition rate of customers or remaining contractual terms, (ii) profitability and (iii) the estimated discount rate that reflects the level of risk associated with receiving future cash flows. Other personal property assets, such as furniture, fixtures and equipment, are valued using the cost approach, which is based on replacement or reproduction costs of the asset less depreciation.9 years.
No summarized unaudited pro forma results are provided for the John WoodBuffalo Group nuclear businessacquisition due to the immateriality of this acquisition relative to the Company's consolidated financial position and results of operations.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
17.     Sale of Energy, Chemicals and Resources ("ECR") Business
On April 26, 2019, Jacobs completed the sale of its ECR business to Worley for a purchase price of $3.4 billion consisting of (i) $2.8 billion in cash plus (ii) 58.2 million ordinary shares of Worley, subject to adjustments for changes in working capital and certain other items (the “ECR sale”).
Discontinued Operations
As a result of the ECR sale, substantially all ECR-related assets and liabilities were sold (the "Disposal Group"). We determined that the Disposal Group should be reported as discontinued operations in accordance with ASC 210-05, Discontinued Operations because their disposal represent a strategic shift that had a major effect on our operations and financial results. As such, the financial results of the ECR business are reflected in our unaudited Consolidated Statements of Earnings as discontinued operations for all periods presented. Additionally, assets and liabilities of the ECR business were reflected as held-for-sale in the Consolidated Balance Sheets through December 27, 2019.
As of the fiscal year ended October 2, 2020, all of the ECR business to be sold under the termsa result of the ECR sale, had been conveyed to Worleythe Company recognized a pre-tax gain of approximately $1.1 billion, $935.1 million of which was recognized in fiscal 2019,$110.2 million in fiscal 2020 and as such, no amounts remain held$15.6 million for sale.the year ended October 1, 2021.
Summarized Financial Information of Discontinued Operations
The following table represents earnings (loss) from discontinued operations, net of tax (in thousands):
For the Three Months EndedFor the Six Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Revenues$0 $4,063 $0 $11,162 
Direct cost of contracts0 (1,363)0 (6,055)
Gross profit0 2,700 0 5,107 
Selling, general and administrative expenses(14)(2,999)(33)44,161 
Operating (Loss) Profit(14)(299)(33)49,268 
Gain on sale of ECR business15,608 19,967 15,608 81,910 
Other expense, net(583)(1,361)(583)(1,361)
Earnings Before Taxes from Discontinued Operations15,011 18,307 14,992 129,817 
Income Tax (Expense) Benefit(3,691)11,573 (3,687)(22,349)
Net Earnings of the Group from Discontinued Operations$11,320 $29,880 $11,305 $107,468 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
In the second quarter of fiscal 2021, the Company received the final working capital settlement proceeds of $36.4 million from Worley and as such, recorded a pre-tax gain of $15.6 million. Offsetting the proceeds from the settlement to arrive at the net gain amount were previously recorded accounts receivable from Worley.
ForInvestment in Worley Stock
As discussed above, the six months ended March 27, 2020, selling, general and administrative expenses included an offsetting insurance recoveryCompany held ordinary shares of $50.0 million recorded in connection with a legal matter. The gain on sale of the ECR business of $20.0 million for the three months ended March 27, 2020 primarily relates to the recognition of the deferred gain for the delayed transfer of the ECR-related assets and liabilities of the two international entities discussed below and adjustments for working capital and certain other itemsWorley that it received in connection with the ECR sale. For the six months ended March 27, 2020, the gainDividend income, realized gains and losses on sale of $81.9 million included additional income for the release of a deferred gain upon achievement of the IT Migration Date described below in connection with the delivery to Worley of certain IT application and hardware assets related to the ECR business, as well as adjustments to the purchase price for working capital and certain other items in connection with the ECR sale.

Gain on Sale and Deferred Gain
As a result of the ECR sale, the Company recognized a pre-tax gain of approximately $1.0 billion, $935.1 million of which was recognized in fiscal 2019,$110.2 million for the year ended October 2, 2020 and $15.6 million for the three and six months ended April 2, 2021.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Upon closing the ECR sale, the Company retained a noncontrolling interest (with significant influence) in People & Places Solutions ("P&PS")-related activities in one international legal entity acquired by Worley. The fair value of the Company’s retained interest in the net assets and liabilities of this entity was estimated at $33.0 million and recorded at closing. For another international legal entity, the closing and transfer of ECR-related assets to Worley were set to occur at a future date. At the time of the ECR sale, the Company allocated proceeds received to these deferred closing items on a relative fair value basis and recognized a deferred gain of $34.4 million. During the second fiscal quarter of 2020, the delayed transfer of the ECR-related assets and liabilities of these two international entities occurred, and as a result, previously deferred gain amounts were recognized.
In addition to consideration received for the sale of the business, the proceeds received included advanced consideration for the Company to deliver IT application and related hardware assets at a future date (“IT Migration Date”) to Worley upon completion of the interim transition services, described further below. This deliverable of IT assets was considered to be a separate element of the ECR business sale transaction, and accordingly, we allocated a portion of the proceeds received of $95.3 million on a relative fair value basis to this separate deliverable and recognized deferred income. Upon completion and acceptance of this deliverable by Worley in December 2019, the deferred proceeds were recognized in income, along with expenses associated with any costs incurred and deferred by the Company for this deliverable.
Investment in Worley Stock
As discussed above, subsequent to the ECR sale, the Company holds 51.4 million in ordinary shares of Worley. Dividend income and unrealized gains and losses on changes in fair value of Worley shares arewere recognized in miscellaneous income (expense), net in continuing operations.operations prior to sale. The Company's investment in Worley iswas measured at fair value through net income as it iswas an equity investment with a readily determinable fair value based on quoted market prices and is $413.4 million atfor the three and six month periods ended April 2, 2021, and $347.5 million at October 2, 2020. For the three months endedApril 2, 2021 and March 27, 2020, the Company recognizedrecognized a $41.9 million and $375.5 million, respectively in losses associated with share price and currency changes on this investment. For the six months endedApril 2, 2021 and March 27, 2020, the Company recognized a gain of $65.9 million loss and a loss of $270.2$65.9 million, gain, respectively, associated with share price and currency changes on this investment. The three and six months ended April 2, 2021 includeincluded Worley stock dividends of $9.8 million and for the three and six months ended March 27, 2020, $7.7 million. Quoted market prices are available for these securities in an active market and therefore categorized as a Level 1 input.
Transition Service Agreement
Upon closing of the ECR sale, the Company entered into a Transition Services Agreement (the "TSA") with Worley pursuant to which the Company, on an interim basis, provided various services to Worley, including executive consultation, corporate, information technology, and project services. The initial term of the TSA began immediately following closing of the ECR sale on April 26, 2019 and expired in April 2020, although the parties mutually agreed to extend certain of the services for additional time periods beyond the initial term. Pursuant to the terms of the TSA, the Company received payments for the interim services which approximate costs incurred to perform the services. The Company has recognized costs recordedcompleted the sale of all ordinary shares of Worley it held in SG&A expense incurred to perform the TSA, offset by $0.2 million and $14.2 million in TSA related income for such services that is reported in miscellaneous income (expense) for thesix months endedApril 2, 2021 and March 27, 2020, respectively, before inclusionfourth fiscal quarter of certain incremental outside service support costs agreed to be shared equally by the parties.fiscal 2021.
18.    Restructuring and Other Charges
During fiscal 2022, the Company implemented certain restructuring and integration initiatives relating to the StreetLight and BlackLynx acquisitions, the activities of which are expected to be substantially completed before the end of fiscal 2023. Also, during fiscal 2022, the Company implemented further real estate rescaling efforts that were associated with its fiscal 2020 transformation program relating to real estate and other staffing initiatives. These initiatives are expected to continue into fiscal 2023.
During fiscal 2021, the Company implemented certain restructuring and integration initiatives relating to the Buffalo Group acquisition and the PA Consulting investment. The activities of these initiatives are substantially completed and are expected to be substantially completedend before the end of fiscal 2021.2025.
Additionally, the Company recorded an impairment charges on its investment in AWE ML during the first quarter of fiscal 2021. See related discussion in Note 11- Joint ventures, VIEs and other investments.
During fiscal 2020, the Company implemented certain restructuring and separation initiatives, including the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate and other staffing programs. The activities of these initiatives are expected to continue into fiscal 2023.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
During fiscal 2019 and continuing into fiscal 2020, the Company implemented certain restructuring, separation and integration initiatives associated with the ECR sale, the acquisition of The KeyW Holding Corporation ("KeyW"), and other related cost reduction initiatives. Additionally, in fiscal 2020, the Company implemented certain restructuring and integration initiatives associated with the acquisition of John Wood Group's nuclear business. The restructuring activities and related costs were comprised mainly of separation and lease abandonment and sublease programs, while the separation and integration activities and costs were mainly related to the engagement of consulting services and internal personnel and other related costs dedicated to the Company’s ECR-business separation and integration of KeyW and the John Wood Group’s nuclear business. The activities of these initiatives are expected to behave been substantially completed beforecompleted.
As part of the end of fiscal 2021.
During the fourth fiscal quarter of 2017, the Company implemented certain restructuring and pre-integration plans associated with the then-pendingCompany's acquisition of CH2M Hill Companies, Ltd. ("CH2M"), an international provider of engineering, construction and technical services (the "CH2M acquisition"), which closed on December 15, 2017. The during fiscal 2018, the Company implemented certain restructuring activities and related costs under these plans that were comprised mainly of severance and lease abandonment programs while theas well as integration activities and costs were mainly related toinvolving the engagement of professional services and internal personnel and other related costs dedicated to the Company’sCompany's integration management efforts. Following the closing of the CH2M acquisition, theseThese activities have continued through fiscal 20202021 and are expected to be substantially completed before the end of fiscal 2022.
Collectively, the above-mentioned restructuring activities are referred to as “Restructuring and other charges.”
The following table summarizes the impacts of the Restructuring and other charges by line of business ("LOB") in connection with the CH2M KeyW,acquisition, John Wood Group's nuclear business, and Buffalo Group, StreetLight and BlackLynx acquisitions, and the PA Consulting investment, the ECR sale, and the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate and other staffing programs, and the impairment and final exit activities of the AWE Management Ltd.ML investment for the three and six monthsmonth periods ended April 1, 2022 and April 2, 2021 and the CH2M, KeyW and John Wood Group's nuclear business acquisitions and the ECR sale for the three and six months ended March 27, 2020 (in thousands):
Three Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Critical Mission Solutions$710 $3,785 $3,919 $8,076 
People & Places Solutions1,533 5,536 6,699 15,689 
PA Consulting13,098 0 13,098 0 
Corporate15,006 31,265 55,025 68,862 
Total (1)$30,347 $40,586 $78,741 $92,627 
(1)For the three months ended April 2, 2021 and March 27, 2020, amounts include $25.1 million and $40.6 million, respectively, and for the six months ended April 2, 2021 and March 27, 2020, amounts include $45.6 million and $90.5 million, respectively, in items impacting operating profit, along with items recorded in other income (expense), net, which includes $(33.2) million related to the impairment of our AWE Management Ltd. investment which is reflected in other income (expense) for the six months ended April 2, 2021 and the loss on settlement of the CH2M portion of the U.S. pension plan of $2.1 million for the six months ended March 27, 2020. See Note 20- Segment Information.
The activity in the Company’s accrual for the Restructuring and other charges, including the program activities described above, for the six months ended April 2, 2021 is as follows (in thousands):
Balance at October 2, 2020$52,854 
Net Charges78,741 
Payments and Usage(106,127)
Balance at April 2, 2021$25,468 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Three Months EndedSix Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Critical Mission Solutions$3,462 $710 $4,616 $3,919 
People & Places Solutions671 1,533 61,840 6,699 
PA Consulting1,517 13,098 1,716 13,098 
Corporate102,514 15,006 109,352 55,025 
Total$108,164 $30,347 $177,524 $78,741 
Amounts included in:
Operating profit (mainly SG&A) (1)$110,171 $25,052 $188,075 $45,544 
Other (Income) Expense, net (2)(2,007)5,295 (10,551)33,197 
$108,164 $30,347 $177,524 $78,741 

(1)Included in the three and six month periods ended April 1, 2022 was $91.3 million related to the final pre-tax settlement of the Legacy CH2M Matter (as defined in Note 19 - Commitments and Contingencies and Derivative Financial Instruments), net of previously recorded reserves. The six month period in fiscal 2022 included approximately $71.0 million in charges associated mainly with real estate related impairments and other transformation activities, the majority of which related to People and Places Solutions.
(2)The six month period ended April 1, 2022 included gains of $(7.1) million related to lease terminations. The six months ended April 2, 2021 included $33.2 million in charges related to the impairment of our AWE ML investment. See Note 20- Segment Information.
The activity in the Company’s accruals for Restructuring and other charges for the six months ended April 1, 2022 is as follows (in thousands):
Balance at October 1, 2021$14,031 
Net (Credits) Charges (1)14,929 
Payments and other(13,338)
Balance at April 1, 2022$15,622 
(1)Excludes $162.6 million in other net charges mainly comprised of $91.3 million in charges for the final pre-tax settlement of the Legacy CH2M Matter (net of previously recorded reserves) during the three months ended April 1, 2022, and $71.0 million associated mainly with real estate related impairments and other transformation activities described above during the six months ended April 1, 2022.
The following table summarizes the Restructuring and other charges by major type of costs for the three and six months ended April 1, 2022 and April 2, 2021 and March 27, 2020 (in thousands):
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Lease Abandonments and Impairments(1)Lease Abandonments and Impairments(1)$2,062 $4,782 $2,211 $4,782 Lease Abandonments and Impairments(1)$2,294 $2,062 $67,837 $2,211 
Voluntary and Involuntary TerminationsVoluntary and Involuntary Terminations3,032 4,925 12,536 18,078 Voluntary and Involuntary Terminations4,548 3,032 5,111 12,536 
Outside ServicesOutside Services18,314 23,405 25,713 54,871 Outside Services11,500 18,314 16,176 25,713 
Other (1)(2)Other (1)(2)6,939 7,474 38,281 14,896 Other (1)(2)89,822 6,939 88,400 38,281 
TotalTotal$30,347 $40,586 $78,741 $92,627 Total$108,164 $30,347 $177,524 $78,741 
(1)Includes $(33.2)The six month period in fiscal 2022 includes approximately $71.0 million in charges associated mainly with real estate related impairments and other transformation activities reflected in Lease Abandonments and Impairments.
(2)The three and six month periods ended April 1, 2022 amounts are comprised mainly of $91.3 million in other charges related to the impairmentfinal pre-tax settlement of our AWE Management Ltd. investment forthe Legacy CH2M Matter, net of previously recorded reserves. Also, the six months ended April 2, 2021.2021 included $33.2 million in Other charges associated with the impairment of our investment in AWE ML.
Cumulative amounts since 2017 incurred to date under our various restructuringRestructuring and other activities described above by each major type of cost as of April 2, 20211, 2022 are as follows (in thousands):

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Lease Abandonments and Impairments$315,727385,635 
Voluntary and Involuntary Terminations141,504149,853 
Outside Services284,837310,170 
Other138,596233,379 
Total$880,6641,079,037 

19.     Commitments and Contingencies and Derivative Financial Instruments
Derivative Financial Instruments
The Company is exposed to interest rate risk under its variable rate borrowings and additionally, due to the nature of the Company's international operations, we are at times exposed to foreign currency risk. As such, we sometimes enter into foreign exchange hedging contracts and interest rate hedging contracts in order to limit our exposure to fluctuating foreign currencies and interest rates.
In fiscal 2020 we entered intoThe Company is party to interest rate swap agreements and a cross-currency swap agreement with a notional valuevalues of $801.5787.1 million and $127.8 million, respectively, as of April 2, 20211, 2022 to manage the interest rate exposure on our variable rate loans. Additionally, we entered into a cross-currency swap agreement with a notional value of $127.8 million to manageloans and the interest rate and foreign currency exposure on our USD borrowings by a European subsidiary. By entering into the swap agreements, the Company converted the LIBOR and SONIA rate based liabilityliabilities into a fixed rate liabilityliabilities and, for the cross currency swap, our LIBOR rate based borrowing in USD to a fixed rate Euro liability, for periods ranging from three and a half to ten years. Under theFor U.S. dollar denominated interest rate swap agreements, the Company receives the one month LIBOR rate and pays monthly a fixed rate ranging from .704%0.704% to 1.116%. For interest rate swaps denominated in British pounds, the Company receives a one month adjusted SONIA rate and underpays a monthly fixed rate of 0.820%. Under the cross currency swap agreement, the Company receives the one month LIBOR rate plus 0.875% in USD and pays monthly a Euro fixed rate of .726%0.726% to .746%0.746% for the term of the swaps. The swaps were designated as cash-flow hedges in accordance with ASC 815, Derivatives and Hedging. See Note 4- New Accounting Pronouncements for additional discussion related to the application of SONIA to existing hedge contracts. The fair value of the interest rate and cross currency swaps at April 2, 20211, 2022 and October 2, 20201, 2021 was $(1.0)$60.4 million and $(31.5)$(0.8) million, respectively, of which $(13.2)$(2.1) million is includedincluded in other deferred liabilities and $12.3$62.5 million is included in miscellaneous other assets on the consolidated balance sheets at April 2, 2021. The entire amount was included1, 2022. As of October 1, 2021, $(11.0) million is included in other deferred liabilities at October 2, 2020.and $10.2 million is included in miscellaneous other assets on the consolidated balance sheets. The unrealized net gain (loss) on these interest rate and cross currency swaps was $9.5$47.5 million and $(14.6)$7.4 million, net of tax, and was included in accumulated other comprehensive income as of April 2, 20211, 2022 and October 2, 2020,1, 2021, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Additionally, the Company held foreign exchange forward contracts in currencies that support our operations, including British Pound, Euro, Australian Dollar and other currencies, with notional values of $447.4$576.5 million at April 2, 20211, 2022 and $393.7506.5 million at October 2, 20201, 2021. The length of these contracts currently ranges from one to 12 months. The fair value of the foreign exchange contracts at April 2, 20211, 2022 and October 2, 20201, 2021 was $79.2$2.4 million and $53.5$55.5 million, respectively, which is included in current assets within receivables and contract assets on the consolidated balance sheets and with associated income statement impacts included in miscellaneous income (expense) in the consolidated statements of earnings.

 During the second quarter, the Company settled $66.7 million in fair value related to certain Australian Dollar foreign exchange forward contracts and received cash and subsequently entered into a new Australian Dollar instrument with an equal notional value.
The fair value measurements of these derivatives are being made using Level 2 inputs under ASC 820, Fair Value Measurement, as the measurements are based on observable inputs other than quoted prices in active markets. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange and interest rate contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Contractual Guarantees and Insurance
In the normal course of business, we make contractual commitments (some of which are supported by separate guarantees) and on occasion we are a party in a litigation or arbitration proceeding. The litigation or arbitration in which we are involved includes personal injury claims, professional liability claims and breach of contract claims. Where we provide a separate guarantee, it is strictly in support of the underlying contractual commitment. Guarantees take various forms including surety bonds required by law, or standby letters of credit ("LOC" and also referred to as “bank guarantees”) or corporate guarantees given to induce a party to enter into a contract with a subsidiary. Standby LOCs are also used as security for advance payments or in various other transactions. The guarantees have various expiration dates ranging from an arbitrary date to completion of our work (e.g., engineering only) to completion of the overall project. We record in the Consolidated Balance Sheets amounts representing our estimated liability relating to such guarantees, litigation and insurance claims. Guarantees are accounted for in accordance with ASC 460-10, Guarantees, at fair value at the inception of the guarantee.
At April 2, 20211, 2022 and October 2, 2020,1, 2021, the Company had issued and outstanding approximately $263.6$274.6 million and $263.0263.8 million, respectively, in LOCs and $2.1$2.1 billion and $2.3$2.1 billion, respectively, in surety bonds.
We maintain insurance coverage for most insurable aspects of our business and operations. Our insurance programs have varying coverage limits depending upon the type of insurance and include certain conditions and exclusions which insurance companies may raise in response to any claim that is asserted by or against the Company. We have also elected to retain a portion of losses and liabilities that occur through using various deductibles, limits, and retentions under our insurance programs. As a result, we may be subject to a future liability for which we are only partially insured or completely uninsured. We intend to mitigate any such future liability by continuing to exercise prudent business judgment in negotiating the terms and conditions of the contracts which the Company enters with its clients. Our insurers are also subject to business risk and, as a result, one or more of them may be unable to fulfill their insurance obligations due to insolvency or otherwise.
Additionally, as a contractor providing services to the U.S. federal government, we are subject to many types of audits, investigations, and claims by, or on behalf of, the government including with respect to contract performance, pricing, cost allocations, procurement practices, labor practices, and socioeconomic obligations. Furthermore, our income, franchise, and similar tax returns and filings are also subject to audit and investigation by the Internal Revenue Service, most states within the United States, as well as by various government agencies representing jurisdictions outside the United States.
Our Consolidated Balance Sheets include amounts representing our probable estimated liability relating to such claims, guarantees, litigation, audits, and investigations. We perform an analysis to determine the level of reserves to establish for insurance-related claims that are known and have been asserted against us, as well as for insurance-related claims that are believed to have been incurred based on actuarial analysis but have not yet been reported to our claims administrators as of the respective balance sheet dates. We include any adjustments to such insurance reserves in our consolidated results of operations. Insurance recoveries are recorded as assets if recovery is probable and estimated liabilities are not reduced by expected insurance recoveries.
The Company believes, after consultation with counsel, that such guarantees, litigation, U.S. government contract-related audits, investigations and claims, and income tax audits and investigations should not have a material adverse effect on our consolidated financial statements, beyond amounts currently accrued.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Litigation and Investigations
In 2012, CH2M HILL Australia PTY Limited, a subsidiary of CH2M, entered into a 50/50 integrated joint venture with Australian construction contractor UGL Infrastructure Pty Limited. The joint venture entered into a Consortium Agreement with General Electric and GE Electrical International Inc. The Consortium was awarded a subcontract by JKC Australia LNG Pty Limited ("JKC") for the engineering, procurement, construction and commissioning of a 360 MW Combined Cycle Power Plant for INPEX Operations Australia Pty Limited at Blaydin Point, Darwin, NT, Australia.Australia (the "Legacy CH2M Matter") . The subcontract was terminated in January 2017. In January 2017, the Consortium terminated the Subcontract because of JKC’s repudiatory breach and demobilized from the work site. JKC claimed the Consortium abandoned the work and itself purported to terminate the Subcontract. The Consortium and JKC are now in dispute over the termination. Inor around August 2017, the Consortium filedcommenced an International Chamber of Commerce arbitration againstarbitration. On April 12, 2022, JKC and is seeking compensatory damagesthe Consortium entered into a confidential deed of settlement (“Settlement Agreement”). Under the terms of the Settlement Agreement, CH2M, as guarantor of CH2M Australia PTY Limited’s obligations with respect to the subcontract with JKC, made a cash payment to JKC of AUD640 million (or approximately $475 million using mid-April 2022 exchange rates). As a result of the settlement, additional pre-tax charges of $91.3 million were recorded during the three-months ended April 1, 2022 for this matter (over amounts previously reserved and reported in long-term Other Deferred Liabilities in the amountCompany's consolidated balance sheet). Further, the related final settlement liability was reclassified to current Accrued Liabilities at April 1, 2022 due to its short term nature. The Settlement Agreement provided for a release of approximately $530.0 million for repudiatory breach or, in the alternative, seeking damages for unresolved contract claims between JKC and change orders. JKC is seeking damages in excess of $1.7 billion and has drawn on the bonds. In light of the COVID-19 pandemic, a November 2020 date for commencement of the hearing was vacated and the hearing was rescheduled for opening arguments in April 2021 and the remaining proceedings in July and August 2021. The opening arguments did occur as scheduled, but in light of the Covid-19 pandemic, the remaining proceedings were rescheduled to now occur in April and May 2022. It is anticipated that closing arguments will be made in July 2022. Although an earlier decision is possible, no decision is expected before the end of 2022 or 2023. In September 2018, JKC filed a declaratory judgment action in Western Australia alleging that the entities which executed parent company guaranties for the Consortium, including CH2M Hill Companies, Ltd., have an obligation to pay JKC’s ongoing costs to complete the project after termination. A hearing on that matter was held in March 2019, and a decision in favoreach member of the Consortium, was issued. JKC appealedand in connection with this agreement the decision, a hearing onmembers of the appeal took place in March 2020 and a decision was handed down on July 22, 2020 denying JKC’s appeal in its entirety. The Consortium has denied liability and is vigorously defending JKC's claims and pursuing its affirmativealso waived all claims against JKC. Based oneach other and their respective parent guarantors relating to the information currently available, the Company does not expect the resolution of this matter to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows, in excess of the current reserve for this matter. See Note 14- Business Combinations in the Company's fiscal 2020 Form 10-K for further information related to CH2M contingencies.project.
On December 22, 2008, a coal fly ash pond at the Kingston Power Plant of the Tennessee Valley Authority ("TVA") was breached, releasing fly ash waste into the Emory River and surrounding community. In February 2009, TVA awarded a contract to the Company to provide project management services associated with the clean-up. All remediation and dredging were completed in August 2013 by other contractors under direct contracts with TVA. The Company did not perform the remediation, and its scope was limited to program management services. Certain employees of the contractors performing the cleanup work on the project filed lawsuits against the Company beginning in August 2013, alleging they were injured due to the Company's failure to protect the plaintiffs from exposure to fly ash, and asserting related personal injuries. The primary case, Greg Adkisson, et al. v. Jacobs Engineering Group Inc., case No. 3:13-CV-505-TAV-HBG, filed in the U.S. District Court for the Eastern District of Tennessee, consists of 10 consolidated cases. This case and the related cases involve several hundred plaintiffs that were employees of the contractors that completed the remediation and dredging work. The cases are at various stages of litigation, and several of the cases are currently stayed pending resolution of other cases. Additionally, in May 2019, Roane County and the cities of Kingston and Harriman filed a claimlawsuit against TVA and the Company alleging that they misled the public about risks associated with the released fly ash. In October 2020, the Court granted Jacobs and TVA’s motion to dismiss the Roane County litigation and closed the case. In addition, in November 2019, a resident of Roane County, Margie Delozier, filed a putative class action against TVA and the Company alleging they failed to adequately warn local residents about risks associated with the released fly ash. The Company and TVA filed separate motions to dismiss the Delozier case in April 2020. In February 2021, the Court granted dismissal of the Delozier Complaint with prejudice, with the exception of Plaintiffs’plaintiffs’ nuisance cause of action. The Court has granted Plaintiffs’ leave to fileaction, which plaintiffs voluntarily dismissed in July 2021. Finally, in August 2021, a resident of Roane County filed an amended Complaint. Inaction against Jacobs and TVA claiming personal injury and property damage. Separately, in February 2020, the Company learned that the district attorney in Roane County recommended that the Tennessee Bureau of Investigation investigate issues pertaining to clean up worker safety at Kingston. On November 15, 2021, the Roane County district attorney announced that it had concluded its investigation into issues pertaining to the Kingston with that investigation still pending.coal ash spill cleanup. No indictments were issued. There has been no finding of liability against the Company or that any of the alleged illnesses are the result of exposure to fly ash in any of the above matters. The Company disputes the claimsallegations asserted in all of the above matters and is vigorously defending these claims.matters. The Company does not expect the resolution of these matters to have a material adverse effect on the Company's business, financial condition, results of operations or cash flows.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
On October 31, 2019, the Company received a request from the Enforcement Division of the Securities and Exchange Commission (the "SEC"("the SEC") for the voluntary production of certain information and documents. The information and documents sought by the SEC primarily relate to the operations of a joint venture in Morocco which was at one time partially-owned by the Company (and subsequently divested), including in respect of possible corrupt practices. The Company is fully cooperating with the SEC and is producing the requestedcontinuing to produce information and documents in its possession.possession in response to subsequent requests by the SEC. The Company does not expect the resolution of this matter to have a material adverse effect on the Company's business, financial condition, results of operations or cash flows.

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
20.     Segment Information
The Company's 3 operating segments andare comprised of its two global lines of business ("LOBs") are as follows:: Critical Mission Solutions ("CMS") and People & Places Solutions ("P&PS"), along with the addition of a new LOB in the second quarter of fiscal year 2021, PA Consulting, as a result of the recent strategic and its majority investment in this business.PA Consulting. For further information on the PA Consulting investment, refer to Note 15 - PA Consulting Business Combination.
The Company’s Chair and Chief Executive Officer is the Chief Operating Decision Maker (“CODM”) and can evaluate the performance of each of these segments and make appropriate resource allocations among each of the segments. For purposes of the Company’s goodwill impairment testing, it has been determined that the Company’s operating segments are also its reporting units based on management’s conclusion that the components comprisingeach of its operating segments share similar economic characteristics and meet the aggregation criteria for reporting units in accordance with ASC 350, Intangibles-Goodwill and Other.
Under this organization, the sales function is managed by LOB and PA Consulting, and accordingly, the associated cost is embedded in the segments and reported to the respective head of each LOB.segment. In addition, a portion of the costs of other support functions (e.g., finance, legal, human resources, and information technology) is allocated to each LOB using methodologies which, we believe, effectively attribute the cost of these support functions to the revenue generating activities of the Company on a rational basis. The cost of the Company’s cash incentive plan, the Leadership Performance Plan ("LPP"), formerly named the Management Incentive Plan, and the expense associated with the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (“1999 SIP”) have likewise been charged to the LOBs except for those amounts determined to relate to the business as a whole (which amounts remain in other corporate expenses).
Financial information for each LOBsegment is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. The Company generally does not track assets by LOB, nor does it provide such information to the CODM.
The CODM evaluates the operating performance of our LOBsoperating segments using segment operating profit, which is defined as margin less “corporate charges” (e.g., the allocated amounts described above). The Company incurs certain Selling, General and Administrative costs (“SG&A”) that relate to its business as a whole which are not allocated to the LOBs.segments.
The following tables present total revenues and segment operating profit from continuing operations for each reportable segment (in thousands) and includes a reconciliation of segment operating profit to total U.S. GAAP operating profit by including certain corporate-level expenses, Restructuring and other charges (as defined in Note 18 - Restructuring and Other Charges)Charges) and transaction and integration costs (in thousands).
For the Three Months EndedFor the Six Months EndedFor the Three Months EndedFor the Six Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Revenues from External Customers:Revenues from External Customers:Revenues from External Customers:
Critical Mission SolutionsCritical Mission Solutions$1,309,573 $1,243,378 $2,604,860 $2,425,835 Critical Mission Solutions$1,366,313 $1,309,573 $2,528,818 $2,604,860 
People & Places SolutionsPeople & Places Solutions2,139,990 2,183,802 4,226,538 4,361,394 People & Places Solutions2,170,356 2,139,990 4,098,502 4,226,538 
PA ConsultingPA Consulting98,310 0 98,310 0 PA Consulting297,390 98,310 587,364 98,310 
Total Total$3,547,873 $3,427,180 $6,929,708 $6,787,229  Total$3,834,059 $3,547,873 $7,214,684 $6,929,708 

For the Three Months EndedFor the Six Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Segment Operating Profit:
Critical Mission Solutions$113,241 $113,933 $224,737 $224,002 
People & Places Solutions191,144 202,030 382,837 398,330 
PA Consulting68,332 27,917 131,402 27,917 
Total Segment Operating Profit372,717 343,880 738,976 650,249 
Other Corporate Expenses (1)(89,232)(63,327)(194,592)(133,667)
Restructuring, Transaction and Other Charges (2)(117,270)(321,665)(200,836)(343,756)
Total U.S. GAAP Operating Profit166,215 (41,112)343,548 172,826 
Total Other (Expense) Income, net (3)(10,933)(71,169)(19,177)69,002 
Earnings from Continuing Operations Before Taxes$155,282 $(112,281)$324,371 $241,828 

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JACOBS ENGINEERING GROUP INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
For the Three Months EndedFor the Six Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Segment Operating Profit:
Critical Mission Solutions$113,933 $84,293 $224,002 $174,715 
People & Places Solutions202,030 189,082 398,330 367,411 
PA Consulting27,917 0 27,917 0 
Total Segment Operating Profit343,880 273,375 650,249 542,126 
Other Corporate Expenses (1)(63,327)(61,216)(133,667)(127,934)
Restructuring, Transaction and Other Charges (2)(321,665)(44,381)(343,756)(95,067)
Total U.S. GAAP Operating (Loss) Profit(41,112)167,778 172,826 319,125 
Total Other (Expense) Income, net (3)(71,169)(344,583)69,002 (241,759)
(Loss) Earnings from Continuing Operations Before Taxes$(112,281)$(176,805)$241,828 $77,366 

(1)
Other corporate expenses also include intangibles amortization of $48.4 million and $30.6 million and $22.1 million for the three months ended April 1, 2022 and April 2, 2021, and March 27, 2020, respectively, and $53.8$95.3 million and $43.9$53.8 million for the six months ended April 1, 2022 and April 2, 2021, and March 27, 2020, respectively.
respectively, with the increase mainly attributable to the PA Consulting investment.
(2)
Included in the three and six months ended April 1, 2022 is $91.3 million related to the final pre-tax settlement of the Legacy CH2M Matter, net of previously recorded reserves and included in the six months ended April 1, 2022 are $74.6 million of real estate impairment charges related to the Company's transformation initiatives. Included in the three and six months ended April 2, 2021 are $296.1 million and $300.2$300.2 million,, respectively, of costs incurred in connection with the investment in PA Consulting, in part classified as compensation costs.
(3)
The six months ended April 1, 2022 include $3.5 million in income associated with final exit activities associated with our AWE ML investment and a gain of $7.1 million related to a lease termination. The three and six months ended April 2, 2021 include $29.7 million and $(63.5) million, respectively, in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale, $34.1 million and $(48.6) million, respectively, in fair adjustments related to our investment in C3 stock. The six months ended April 2, 2021 also includes $(33.2) million related to impairment of our AWE Management Ltd. investment. The three and six months ended March 27, 2020 include revenues under the Company's TSA with Worley of $2.2$29.7 million and $14.2 million, respectively, $(341.0) million and $(241.9)$(63.5) million, respectively, in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale the amortization of deferred financing feesand $34.1 million and $(48.6) million, respectively, in fair value adjustments related to our investment in C3 stock. The six months ended April 2, 2021 also includes $33.2 million related to impairment of our AWE ML investment. The investments in Worley and C3 were sold in fiscal 2021 and therefore there are no comparable amounts in the CH2M acquisition of $0.1 million and $0.7 million, respectively, and the loss on settlement of the CH2M portion of the U.S. pension plan of $0 and $2.7 million, respectively.
current quarter.
(1)Included in other corporate expenses in the above table are costs and expenses, which relate to general corporate activities as well as corporate-managed benefit and insurance programs. Such costs and expenses include: (i) those elements of SG&A expenses relating to the business as a whole; (ii) those elements of our incentive compensation plans relating to corporate personnel whose other compensation costs are not allocated to the LOBs; (iii) the amortization of intangible assets acquired as part of business combinations; (iv) the quarterly variances between the Company’s actual costs of certain of its self-insured integrated risk and employee benefit programs and amounts charged to the LOBs; and (v) certain adjustments relating to costs associated with the Company’s international defined benefit pension plans. In addition, other corporate expenses may also include from time to time certain adjustments to contract margins (both positive and negative) associated with projects, as well as other items, where it has been determined that such adjustments are not indicative of the performance of the related LOB.

See also MD&A the further description of results of operations for our operating segments in Item 2- Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.
General
The purpose of this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is to provide a narrative analysis explaining the reasons for material changes in the Company’s (i) financial condition from the most recent fiscal year-end to April 2, 20211, 2022 and (ii) results of operations during the current fiscal period(s) as compared to the corresponding period(s) of the preceding fiscal year. In order to better understand such changes, readers of this MD&A should also read:
•The discussion of the critical and significant accounting policies used by the Company in preparing its consolidated financial statements. The most current discussion of our critical accounting policies appears in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of our 20202021 Form 10-K, and the most current discussion of our significant accounting policies appears in Note 2- Significant Accounting Polices in Notes to Consolidated Financial Statements of our 20202021 Form 10-K;
•The Company’s fiscal 20202021 audited consolidated financial statements and notes thereto included in our 20202021 Form 10-K; and
•Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 20202021 Form 10-K.
In addition to historical information, this MD&A and other parts of this Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not directly relate to any historical or current fact. When used herein, words such as “expects,” “anticipates,” “believes,” “seeks,” “estimates,” “plans,” “intends,” “future,” “will,” “would,” “could,” “can,” “may,” and similar words are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements we make concerning the potential continued effects of the COVID-19 pandemic on our business, financial condition and results of operations and our expectations as to our future growth, prospects, financial outlook and business strategy for fiscal 20212022 or future fiscal years and the anticipated benefits of acquisitions and the strategic partnership withinvestment in PA Consulting. You should not place undue reliance on these forward-looking statements. Although such statements are based on management’s current estimates and expectations, and/or currently available competitive, financial, and economic data, forward-looking statements are inherently uncertain, and you should not place undue reliance on such statements as actual results may differ materially. We caution the reader that there are a variety of risks, uncertainties and other factors that could cause actual results to differ materially from what is contained, projected or implied by our forward-looking statements. Such factors include our ability to execute on our newly-announced three-year corporate strategy, including our ability to invest in the magnitude, timing, durationtools needed to fully implement our strategy, competition from existing and ultimatefuture competitors in our target markets, our ability to achieve the cost-savings and synergies contemplated by our recent acquisitions within the expected time frames and to successfully integrate acquired businesses while retaining key personnel, the impact of the COVID-19 pandemic, including the emergence and spread of variants of COVID-19, and any resulting economic downturn on our results, prospects and opportunities; the timeline for easing or removing “shelter-in-place”, “stay-at-home”, social distancing, travel restrictions and similar orders,opportunities, measures or restrictions imposed by governments and health officials in response to the pandemic, or if such orders, measures or restrictions are re-imposed after being lifted or eased, including as a result of increases in cases of COVID-19; the development, effectiveness and distribution of vaccines or treatments for COVID-19; the timing and scope of any government stimulus programs enacted in response to the impacts of the COVID-19 pandemic,award of projects and funding under the Infrastructure Investment and Jobs Act, as well as general economic conditions, including but not limited to, any proposed infrastructure-related stimulus programsinflation, changes in interest rates and theforeign currency exchange rates and changes in capital markets, and geopolitical events and conflicts, among others. The impact of such matters includes, but is not limited to, the possible reduction in demand for certain of our product solutions and services and the delay or abandonment of ongoing or anticipated projects due to the financial condition of our clients and suppliers or to governmental budget constraints or changes to governmental budgetary priorities; the inability of our clients to meet their payment obligations in a timely manner or at all; potential issues and risks related to a significant portion of our employees working remotely; illness, travel restrictions and other workforce disruptions that have and could continue to negatively affect our supply chain and our ability to timely and satisfactorily complete our clients’ projects; difficulties associated with retaining key personnel or hiring additional employees or replacing any furloughed employees; increased volatility in the capital markets that may affect our ability to access sources of liquidity on acceptable pricing or borrowing terms or at all; and the inability of governments in certain of the countries in which we operate to effectively mitigate the financial or other impacts of the COVID-19 pandemic on their economies and workforces and our operations therein. The foregoing factors and potential future developments are inherently uncertain, unpredictable and, in many cases, beyond our control. For a description of these and additional factors that may occur that could cause actual results to differ from our forward-looking statements, see those listed and discussed in Item 1A, Risk Factors included in our 20202021 Form 10-K and our Quarterly Reports on Form 10-Q. We undertake no obligation to release publicly any revisions or updates to any forward-looking statements. We encourage you to read carefully the risk factors, as well as the financial and business disclosures contained in this Quarterly Report on Form 10-Q and in other documents we file from time to time with the United States Securities and Exchange Commission ("the SEC").

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Impact of COVID-19 on Our Business
On March 11, 2020, the World Health Organization characterized the outbreak of the novel coronavirus (“COVID-19”) as a global pandemic and recommended certain containment and mitigation measures. On March 13, 2020, the United States declared a national emergency concerning the outbreak, and the vast majority of states and many municipalities have declared public health emergencies or takentook similar actions. Along with these declarations, there were extraordinary and wide-ranging actions taken by international, federal, state and local public health and governmental authorities to contain and combat outbreaks of COVID-19 in regions across the United States and around the world. These actions included quarantines and “stay-at-home” or “shelter-in-place” orders, social distancing measures, travel restrictions, school closures and similar mandates for many individuals in order to substantially restrict daily activities and orders for many businesses to curtail or cease normal operations unless their work is critical, essential or life-sustaining. Although certainmost jurisdictions in which we operate have taken steps to liftlifted or easeeased such restrictions to various degrees, some jurisdictions have subsequently reversed such lifting or easingreimposed restrictions to varying degrees in response to increased cases caused by variants of COVID-19. In addition, governments and central banks in the United States and other countries in which we operate have periodically enacted fiscal and monetary stimulus and assistance measures to counteract the economic impacts of COVID-19.
As it became clear that the pandemic was unparalleled in the rate of community spread, we took early, decisive action to put people first, help flatten the curve and take care of our clients and communities. In early March 2020, we swiftly restricted travel and established return protocols for both client-related and personal travel. In 10 days, weWe successfully transitioned more than 85%the vast majority of our employees to a remote working environment to support physical distancing. Where the essential and mission-critical nature of our work requires us to maintain staff at certain sites or locations, we worked closely with our clients and established project-specific plans designed to ensure the safety of our people and the integrity of our operations. Using technology and optimizing our networks, we continue to offer flexible work scenarios for our people, and to deliver business continuity for and continued collaboration with our clients. Our Executive Leadership Team met daily for the first three months and weekly thereafter, focusing on transparency, agile response and business resiliency; and our global and regional crisis management teams continued to maintain consistent messaging and direct local responses. Our regular global Town Halls, a weekly Chair and CEO email and short, self-produced leadership videos are intended to share open, transparent information to connect and unite our global community.
We are a company operating in a critical infrastructure industry, as defined by the U.S. Department of Homeland Security. Consistent with international, federal, state and local requirements to date, we continue to materially operate. In addition, demand for certain of our services, including those supporting health care relief efforts relating to COVID-19, has increased, and could continue to increase, as a result of COVID-19. Notwithstanding our continued critical operations, COVID-19 has negatively impacted our business, and may have further adverse impacts, on our continued operations, including those listed and discussed in Item 1A, Risk Factors included in our 20202021 Form 10-K. Accordingly, at the height of the pandemic, we havetemporarily reduced spending broadly across the Company, only proceeding with operating and capital spending that iswas critical. We had also temporarily ceased all non-essential hiring and reduced discretionary expenses, including temporarily suspending certain employee benefits and compensation through the end of fiscal 2020. Subsequently, we have adjusted our response according to the circumstances and local laws in the jurisdictions in which we operate, including the emergence and spread of variants, such as the omicron variant. Looking ahead, we have developed contingency plans to reduce costs further if the situation further deteriorates or lasts longer than current expectations. We will continue to actively monitor the situation and may take further actions that alter our business operations as may be necessary or appropriate for the health and safety of employees, contractors, customers, suppliers or others or as required by international, federal, state or local authorities.
Based on current estimates, we expectThe impacts of the impact of COVID-19 topandemic continue throughout fiscal 2021, although to a lesser degree than what was seen in fiscal 2020. Although this business disruption is expected to be temporary,felt in our operating results as compared to business levels pre-pandemic, although not significantly impacting the current fiscal quarter as compared to the corresponding quarter of the 2021 fiscal year. Further, for future periods, significant uncertainty existscontinues to exist concerning the magnitude, duration and impacts of the COVID-19 pandemic, including with regard to the effects on our customers, and customer demand for our services.services, disruptions to supply chains and labor forces and increasing inflationary pressures. Accordingly, actual results for future fiscal periods could differ materially versus current expectations and current results and financial condition discussed herein may not be indicative of future operating results and trends.
For a discussion of risks and uncertainties related to COVID-19, including the potential impacts on our business, financial condition and results of operations, see Item 1A - Risk Factors contained in our 20202021 Form 10-K.
Business Overview
At Jacobs, we’re challenging today to reinvent tomorrow by solving the world’s most critical problems for thriving cities, resilient environments, mission-critical outcomes, operational advancement, scientific discovery and cutting-edge manufacturing.

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We operate in three lines of business: Critical Mission Solutions, People & Places Solutions and our new investment in PA Consulting. Our business transformation over the last several years includes the $3.2 billion acquisition of CH2M Hill Companies, Ltd. ("CH2M"), the $3.4 billion divestiture of the Company's Energy, Chemicals and Resources business and the $1.7 billion investment in PA Consulting Group Limited (“PA Consulting”) in the current quarter. Our acquisitions of KeyW Holding Corporation ("KeyW"), John Wood Group’s nuclear business and Buffalo Group LLC ("Buffalo Group"), further position us in high-value government services and technology-enabled solutions.
Revenue by Type (Q2 FY2021)1FY2022)
jec-20210402_g1.jpgjec-20220401_g1.jpg
1 Due to COVID-19 and the actions taken by governmental authorities and others related thereto, some of the information provided in this summary relating to sources of revenue could be substantially different in the remainder of fiscal 2021.
Lines of Business
The Company's three operating segments and globalservices we provide fall into the following two lines of business ("LOBs") are as follows: (i)(LOB): Critical Mission Solutions (ii)(CMS) and People & Places Solutions (P&PS). The LOBs and (iii) the newa majority investment in PA Consulting.Consulting (PA) constitute the Company’s reportable segments. For additional information regarding our segments, including information about our financial results by segment and financial results by geography, see Note 5 - Revenue Accounting for Contracts of Notes to Consolidated Financial Statements.

Critical Mission Solutions (CMS)
Our Critical Mission Solutions line of business provides a full spectrum of cyber, data analytics, systems and software application integration services and consulting, enterprise level operations and maintenance and mission IT, engineering and design, enterprise operations and maintenance, program management, and other highly technical consulting solutions to government agencies as well as commercial customers and international markets. Across multiple businesses within CMS, we license internally developed technology such as KeyRadar®, Ginkgo and ion©.
Our representative clients include the U.S. Department of Defense (DoD), the Combatant Commands, the U.S. Intelligence Community, NASA, the U.S. Department of Energy (DoE), U.K. Ministry of Defence, in the U.K., Nuclear Decommissioning Authority (NDA), and the Australian Department of Defence, as well as private sector customers mainly in the aerospace, automotive, energy and telecom sectors.
Within the nuclear sector, our customers have decades-long initiatives to manage, upgrade, decommission and remediate existing energy infrastructure.

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The U.S. government is the world’s largest buyer of technical services, and in fiscal 2020,2021, approximately 79%74% of CMS’s revenue was earned from serving the DoD, intelligence community and federal civilianFederal Civilian governmental entities. In fiscal 2020, approximately 8% of CMS’s revenue was from various U.S. commercial sectors, including the telecommunications sector, which anticipates a large cellular infrastructure build-out from 4G to 5G technology. Our international customers, which accounted for 13%18% of fiscal 20202021 revenue, have also increased demand for our IT and cybersecurity solutions and nuclear projects, and the U.K. Ministry of Defence continues to focus on accelerating its strategic innovative and technology focused initiatives.

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People & Places Solutions (P&PS)
Jacobs' People & Places Solutions line of business provides end-to-end solutions for our clients’ most complex projectschallenges - whether climate change, energy transition, connected mobility, integrated water management, smart cities advanced manufacturing or environmental stewardship.vaccine manufacturing. In doing so, we employ predictive analytics, artificial intelligenceincorporate the full spectrum of data science and automation, digital twin technology, IoT smart sensors, geospatial visualizationtechnology-enabled toolsets within a human-centric solution development and advanced delivery processesframework. We embrace inclusive engagement of partners and tools forstakeholders and generate enduring social equity/value through consulting, planning, architecture, design and engineering and implementation,project outcomes, as well as long-term operation of facilities and infrastructure. Solutions may be delivered as standalone engagements or through comprehensive program management solutions that integrateintegrates disparate workstreams to yield additional benefits not attainable through project-by-project implementation. We also provide progressive design-build and construction management at-risk delivery for our clients.solutions in targeted markets.
Our clients include national, state and local government in the U.S., Canada, Europe, U.K., Middle East, Australia, New Zealand and Asia, as well as multinational private sector clients throughout the world.
PA Consulting
In fiscal 2021, Jacobs recently completed a strategic investment ofinvested in a 65% intereststake in PA Consulting, anthe consultancy that is Bringing Ingenuity to Life. Its diverse teams of experts combine innovative thinking and breakthrough use of technologies to progress further, faster. PA Consulting’s clients adapt and transform and achieve enduring results. An innovation and transformation consultancy, which takes clients from an idea through prototype to marketPA's roughly 3,300 employees work across seven sectors: consumer and enables those clients to achieve meaningful and enduring results. PA Consulting clients benefit from diverse teams specializing inmanufacturing, defense and security, consumer and manufacturing, energy and utilities, financial services, government, health and life sciences, and transport. PA Consulting has capabilities in agile transformationpeople are strategists, innovators, designers, consultants, digital experts, scientists, engineers and delivery, artificial intelligencetechnologists. The team operates globally from offices across the U.K., U.S., Nordics and automation, business design, cyber security and digital trust, data analytics and business intelligence, digital, IT transformation, operational excellence, people and talent, program and portfolio management, product design and engineering, and strategy. the Netherlands.

PA Consulting is headquartered inoffers end-to-end innovation, accelerating new growth ideas from concept, through design, development, and to commercial success, and revitalizing organizations, building the UK,leadership, culture, systems and its strategists, digital experts, consultants, designers, scientists, technologistsprocesses to make innovation a reality. PA Consulting has a diverse mix of private and engineers work across a range of industries in the UK, US, Europepublic sector clients, from global household names to start-ups, to national and the Nordics.local public services.
Energy, Chemicals and Resources(ECR)
ECR Disposition
On April 26, 2019, Jacobs completed the sale of its Energy, Chemicals and Resources ("ECR") business to Worley Limited, a company incorporated in Australia ("Worley"), for a purchase price of $3.4 billion consisting of (i) $2.8 billion in cash plus (ii) 58.2 million ordinary shares of Worley, subject to adjustments for changes in working capital and certain other items (the “ECR sale”).
As a result of the ECR sale, substantially all ECR-related assets and liabilities were sold (the "Disposal Group"). We determined that the disposal group should be reported as discontinued operations in accordance with ASC 210-05,
Discontinued Operations
because their disposal represented a strategic shift that had a major effect on our operations and financial results. As such, the assets and liabilities of the ECR business were reflected as held-for-sale in the Consolidated Balance Sheets through September 27, 2019. As of the year ended October 2, 2020, all of the ECR business to be sold under the terms of the ECR sale had been conveyed to Worley and as such, no amounts remain held for sale. For further discussion see Note 17-
Sale of Energy, Chemicals and Resources ("ECR") Business
to the consolidated financial statements.








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Results of Operations for the three and six months ended April 1, 2022 and April 2, 2021 and March 27, 2020
(in thousands, except per share information)
For the Three Months EndedFor the Six Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Revenues$3,834,059 $3,547,873 $7,214,684 $6,929,708 
Direct cost of contracts(2,963,649)(2,780,860)(5,547,800)(5,530,636)
Gross profit870,410 767,013 1,666,884 1,399,072 
Selling, general and administrative expenses(704,195)(808,125)(1,323,336)(1,226,246)
Operating Profit (Loss)166,215 (41,112)343,548 172,826 
Other Income (Expense):
Interest income381 608 1,882 1,732 
Interest expense(21,995)(15,464)(41,421)(32,777)
Miscellaneous income (expense), net10,681 (56,313)20,362 100,047 
Total other (expense) income, net(10,933)(71,169)(19,177)69,002 
Earnings (Loss) from Continuing Operations Before Taxes155,282 (112,281)324,371 241,828 
Income Tax (Expense) Benefit from Continuing Operations(46,166)20,772 (62,054)(66,250)
Net Earnings (Loss) of the Group from Continuing Operations109,116 (91,509)262,317 175,578 
Net (Loss) Earnings of the Group from Discontinued Operations(1)11,320 (233)11,305 
Net Earnings (Loss) of the Group109,115 (80,189)262,084 186,883 
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations(10,261)(10,158)$(19,514)$(20,184)
Net (Earnings) Loss Attributable to Redeemable Noncontrolling interests(10,038)101,392 (19,721)101,392 
Net Earnings (Loss) Attributable to Jacobs from Continuing Operations88,817 (275)223,082 256,786 
Net Earnings Attributable to Jacobs$88,816 $11,045 $222,849 $268,091 
Net Earnings Per Share:
Basic Net Earnings from Continuing Operations Per Share$0.69 $— $1.72 $1.97 
Basic Net Earnings from Discontinued Operations Per Share$— $0.09 $— $0.09 
Basic Earnings Per Share$0.69 $0.08 $1.72 $2.06 
Diluted Net Earnings from Continuing Operations Per Share$0.68 $— $1.71 $1.96 
Diluted Net Earnings from Discontinued Operations Per Share$— $0.09 $— $0.09 
Diluted Earnings Per Share$0.68 $0.08 $1.71 $2.04 
For the Three Months EndedFor the Six Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Revenues$3,547,873 $3,427,180 $6,929,708 $6,787,229 
Direct cost of contracts(2,780,860)(2,779,045)(5,530,636)(5,494,522)
Gross profit767,013 648,135 1,399,072 1,292,707 
Selling, general and administrative expenses(808,125)(480,357)(1,226,246)(973,582)
Operating (Loss) Profit(41,112)167,778 172,826 319,125 
Other Income (Expense):
Interest income608 985 1,732 1,931 
Interest expense(15,464)(15,154)(32,777)(29,971)
Miscellaneous (expense) income, net(56,313)(330,414)100,047 (213,719)
Total other (expense) income, net(71,169)(344,583)69,002 (241,759)
(Loss) Earnings from Continuing Operations Before Taxes(112,281)(176,805)241,828 77,366 
Income Tax Benefit (Expense) from Continuing Operations20,772 61,122 (66,250)(7,368)
Net (Loss) Earnings of the Group from Continuing Operations(91,509)(115,683)175,578 69,998 
Net Earnings of the Group from Discontinued Operations11,320 29,880 11,305 107,468 
Net (Loss) Earnings of the Group(80,189)(85,803)186,883 177,466 
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations(10,158)(6,284)(20,184)(12,540)
Net Loss Attributable to Redeemable Noncontrolling interests101,392 — 101,392 — 
Net (Loss) Earnings Attributable to Jacobs from Continuing Operations(275)(121,967)256,786 57,458 
Net Earnings (Loss) Attributable to Jacobs$11,045 $(92,087)$268,091 $164,926 
Net Earnings Per Share:
Basic Net (Loss) Earnings from Continuing Operations Per Share$— $(0.92)$1.97 $0.43 
Basic Net Earnings from Discontinued Operations Per Share$0.09 $0.23 $0.09 $0.81 
Basic Earnings (Loss) Per Share$0.08 $(0.69)$2.06 $1.24 
Diluted Net (Loss) Earnings from Continuing Operations Per Share$— $(0.92)$1.96 $0.43 
Diluted Net Earnings from Discontinued Operations Per Share$0.09 $0.23 $0.09 $0.80 
Diluted Earnings (Loss) Per Share$0.08 $(0.69)$2.04 $1.23 






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Overview – Three and Six MonthsMonth Periods Ended April 2, 2021
COVID-19 Pandemic. There are many risks and uncertainties regarding the COVID-19 pandemic, including the anticipated duration of the pandemic and the extent of local and worldwide social, political, and economic disruption it may cause. The Company’s operations for the second fiscal quarter of 2021 were adversely impacted by COVID-19. While certain business units of Critical Mission Solutions, People & Places Solutions and PA Consulting have experienced, and may continue to experience, an increase in demand for certain of their services regarding new projects that may arise in response to the COVID-19 pandemic, it is still expected that COVID-19 is likely to continue to have an adverse impact on each of Critical Missions Solutions and People & Places Solutions continuing into fiscal 2021, although to a lesser degree than what was seen in fiscal 2020.
For a discussion of risks and uncertainties related to COVID-19, including the potential impacts on the Company’s business, financial condition and results of operations, see “Part I - Item 1A - Risk Factors” of our 2020 Form 10-K.1, 2022
Net (loss) earnings attributable to the Company from continuing operations for the second fiscal quarter ended April 2, 20211, 2022 were $(0.3)$88.8 million (or $0.00$0.68 per diluted share), an increase of $121.7$89.1 million, or 99.8%, from net lossesloss of $(122.0)$(0.3) million (or $(0.92)$0.00 per diluted share) for the corresponding period last year. IncludedThe second fiscal quarter of 2022 benefited from our StreetLight, BlackLynx and the full quarter impact of our PA Consulting investment acquired on March 2, 2021, partly offset by pre-tax Restructuring and other charges and transactions costs of $115.3 million, comprised mainly of the final pre-tax $91.3 million settlement of the Legacy CH2M Matter, net of previously recorded reserves, of $91.3 million, which is further discussed in the CompaNote 19 - ny’s operating results from continuing operations for the Commitments and Contingencies and Derivative Financial Instruments.three months The comparable period ended April 2, 2021 were $21.8included $296.1 million in after-taxpre-tax deal related charges associated with the investment in PA Consulting, in part classified as compensation costs and reported in selling, general and administration expenses, as well as $(29.7) million and $(34.1) million in pre-tax fair value losses recorded in miscellaneous income (expense), net, associatedassociated with our investmentformer investments in Worley stock (net of Worley stock dividend) andwhich includes impacts of certain foreign currency revaluations relatingrelated to the ECR sale and after-tax fair value losses associated with our investment in C3.ai, Inc. ("C3") of $35.1 million. These losses were partially offset by the after-tax realized gain of $9.5 million related to holdings of our C3 shares sold during the period as further discussed in Note 11- Joint Ventures, VIEs and Other Investments. In addition, the, respectively. Lastly, current periodquarter selling, general and administrative expense includes after-taxpre-tax intangible amortization costs of $48.4 million, an increase of $17.8 million (or 58%), from the corresponding prior year period of $30.6 million due to acquired intangible assets from recent acquisitions mainly associated with the PA Consulting investment.
For the six months ended April 1, 2022, net earnings attributable to the Company from continuing operations were $223.1 million (or $1.71 per diluted share), a decrease of $(33.7) million, or (13.1)%, from $256.8 million (or $1.96 per diluted share) for the corresponding period last year. The current year-to-date period benefited from the same recent investing activities mentioned above, partially offset by pre-tax Restructuring and other charges and transactions costs of $190.3 million, which included the final pre-tax settlement charges on the Legacy CH2M Matter mentioned above of $91.3 million and $74.6 million in charges associated with the Company's transformation initiatives relating to real estate which is discussed in Note 18 - Restructuring and Other Charges. In comparison, the corresponding period in the prior year period included pre-tax costs incurred in connection with the investment in PA Consulting, in part classified as compensation costs and reported in selling, general and administrative expenses, of $292.0$300.2 million. In comparison,addition, the corresponding period in the prior year included $258.6 million in after-tax fair value losses associated with our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale.
Net earnings attributable to the Company from discontinued operations for the second fiscal quarter ended April 2, 2021 were $11.3 million (or $0.09 per diluted share), a decrease of $18.6 million, or 62.1%, from earnings of $29.9 million (or $0.23 per diluted share) for the corresponding period last year. Included in net earnings attributable to Jacobs from discontinued operations for the current quarter was the final working capital settlement with Worley, partially offset by accounts receivable from Worley. Included in the prior year period was the recognition of the deferred gain for the delayed conveyance of the international entitiesincluded $63.5 million and adjustments for working capital and certain other items$48.6 million in connection with the ECR sale. For further discussion, see Note 17- Sale of Energy, Chemicals and Resources ("ECR") Business.
For the six months ended April 2, 2021, net earnings attributable to the Company from continuing operations were $256.8 million (or $1.96 per diluted share), an increase of $199.3 million, or 346.9%, from $57.5 million (or $0.43 per diluted share) for the corresponding period last year. Included in the Company’s operating results from continuing operations for the six months ended April 2, 2021 were $48.5 million in after-tax unrealized appreciationpre-tax fair value gains recorded in miscellaneous income (expense), net, associated with our investmentformer investments in Worley stock (net of Worley stock dividend) andwhich includes impacts of certain foreign currency revaluations relatingrelated to the ECR sale and after-tax unrealized appreciation gains associated withC3, respectively. The prior year comparable period also included a pre-tax other loss of $33.2 million for an other-than-temporary impairment of our investment in C3.ai, Inc.AWE Management Ltd. ("C3") of $27.2 million in addition to the after-tax realized gain of $9.5 million related to holdings of our C3 shares sold during the period as further discussed Note 11 - Joint Ventures, VIEs and Other Investments. Also included in other income for the period was a $26.9 million after-tax other-than-temporary impairment in respect of our AWE investment. In addition, theML"). Lastly, current year to date period selling, general and administrative expense includes after-taxpre-tax intangible amortization costs incurred in connectionof $95.3 million, an increase of $41.6 million (or 77%), from the corresponding prior year period of $53.8 million due to acquired intangible assets from recent acquisitions mainly associated with the investment in PA Consulting in part classified as compensation costs, of $295.1 million. In comparison, the corresponding period in the prior year included $183.7 million in after-tax fair value losses associated with our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale.investment.
For the six months ended April 2, 2021, net earnings attributable to the Company fromdiscussion of discontinued operations, were $11.3 million (or $0.09 per diluted share), a decrease of $96.2 million, or 89.5%, from $107.5 million (or $0.80 per diluted share) for the corresponding period last year. Included in net earnings attributable to Jacobs from discontinued operations for the current year to date period was the final working capital settlement with Worley, partially offset by accounts receivable from Worley. The prior year to date period included the settlement of the Nui Phao ("NPMC") legal matter that was reimbursed by insurance, the recognition of the deferred gain for the delayed conveyance of the

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international entities and for the delivery of the ECR IT assets and adjustments for working capital and certain other items in connection with the ECR sale. For further discussion, see Note 17 - Sale of Energy, Chemicals and Resources ("ECR") Business.
On February 4, 2022, the Company acquired StreetLight Data, Inc., ("StreetLight"). On November 19, 2021, a subsidiary of Jacobs acquired BlackLynx. For further discussion, see Note 16 - Other Business Combinations.
On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting. For further discussion, see Note 15 - PA Consulting Business Combination.
On November 24, 2020, a subsidiary of Jacobs completed the acquisition of Buffalo Group. For further discussion, see Note 16-16 - Other Business Combinations.
Consolidated Results of Operations
Revenues for the second fiscal quarter of 20212022 were $3.55$3.83 billion, an increase of $120.7$286.2 million, or 3.5%8.1%, from $3.43$3.55 billion for the corresponding period last year. For the six months endedApril 2, 2021,1, 2022, revenues were $6.93$7.21 billion, an increase of $142.5$285.0 million, or 2.1%4.1%, from $6.79$6.93 billion for the corresponding period last year. The increase in revenuesRevenue increases for the year over year periods waswere due mainly to fiscal 20212022 incremental revenues from the PA Consulting investment and the StreetLight, BlackLynx and Buffalo Groupgroup acquisitions, as well as benefits from increased spending in our U.S. government business sector client base. These increases in revenues for the three and John Wood Group Nuclear business acquisitions,six months ended April 1, 2022 were partially offset by declines in partpass-through revenues in advanced facilities business. The six months ended April 1, 2022 was

Page 44

unfavorably impacted by certain large contract wind downs in the U.S. Also, revenue was unfavorably impacted from foreign currency translation of $51.7 million and $42.5 million for the three and six months ended April 1, 2022, respectively, in our international businesses as compared to favorable impacts fromof $75.6 million and $113.0 million in the COVID 19 pandemic on our P&PS business, which resulted in a decrease to P&PS revenues period over period.corresponding periods last year. Pass-through costs included in revenues for the three and six months ended April 2, 20211, 2022 amounted to $576.6$563.7 million and $1.23$1.04 billion, respectively, a decrease of $64.8$13.0 million and $117.8$189.3 million, or 10.1%(2.2)% and 8.8%(15.4)%, from $641.4$576.6 million and $1.34$1.23 billion from the corresponding periods last year.
Gross profit for the second quarter of 20212022 was $767.0$870.4 million, an increase of $118.9$103.4 million, or 18.3%13.5%, from $648.1$767.0 million from the corresponding period last year. Our gross profit margins were 21.6%22.7% and 18.9%21.6% for the three months ended April 1, 2022 and April 2, 2021, and March 27, 2020, respectively, with these trendmargin differences being mainly attributable to favorable margin trendsimpacts from the business results of our recent PA Consulting investment and the StreetLight, BlackLynx and Buffalo Group and John Wood Group nuclearacquisitions, as well as benefits from increased spending by customers in the U.S. government business acquisitions, offset in part by project mix impacts in our legacy portfolio year over year and lower overhead rate impacts on revenue resulting from our ongoing cost reduction programs partially offset by COVID-19 cost mitigation efforts.sector. Gross profit for the six months ended April 2, 20211, 2022 was $1.40$1.67 billion, an increase of $106.4$267.8 million, or 8.2%19.1%, from $1.29$1.40 billion from the corresponding period to date last year. Our gross profit margins were 20.2%23.1% and 19.0%20.2% for the six months ended April 1, 2022 and April 2, 2021, and March 27, 2020, respectively, with these trend differences being mainly attributable tobenefits from the legacy portfolio mix and lower overhead rate impacts mentioned above, along withsimilar favorable margin trends from our recent acquisitions and investmentincreased spending in PA Consulting.the U.S. government business sector noted above, partially offset by certain large contract wind downs in the U.S as well as increases in labor costs associated with moderation of COVID-19 mitigation efforts and a competitive labor market, and incremental investments to support projected top-line growth.
See Segment Financial Information discussion for further information on the Company’s results of operations at the operating segment.
SG&A expenses for the three and six months ended April 2, 20211, 2022 were $704.2 million and $1.32 billion, respectively, a decrease of $103.9 million and increase of $97.1 million, or (12.9)% and 7.9%, from $808.1 million and $1.23and $1.23 billion respectively, an increase of $327.8 million and $252.7 million, or 68.2% and 26.0%, from $480.4 million and $973.6 million for the corresponding periods last year. Included in the current year'sThe three and six months ended results for fiscal 2022 were $321.5impacted by incremental SG&A expenses from recent business acquisitions (mainly PA Consulting) of $98.5 million and $343.5$192.0 million, respectively, of restructuringas compared to approximately $40 million (excluding compensation costs associated with the PA strategic investment mentioned below) in the corresponding prior year periods due to the prior comparable periods including PA Consulting activity only for the partial periods subsequent to the March 2, 2021 investment date. Additionally, Restructuring and other charges and transaction costs primarily comprisedfor the periods of 2022 included $91.3 million attributable to final pre-tax settlement of the Legacy CH2M Matter, which is further discussed in Note 19- Commitments and Contingencies and Derivative Financial Instruments. Also, the current 2022 periods SG&A expenses were impacted by higher personnel related costs due mainly to the moderation of COVID-19 mitigation efforts and related impacts. Also, the current year-to-date Restructuring and other charges and transaction costs were impacted by $74.6 million in costs associated in part with the Company's transformation initiatives relating to real estate. The three and six months ended April 2, 2021 include amounts of $296.1 million and $300.2 million, in the respective periodsrespectively, for pre-tax costs incurred in connection with the investment in PA Consulting, in part classified as compensation costs reported in selling, general and administrative expenses, in addition to the Company's transformation initiatives relating to real estate and other staffing programs and the Company's impairmentinitiatives. Lastly, SG&A expenses benefited from favorable foreign exchange impacts of its AWE investment. In comparison, the three and six months ended March 27, 2020 included $44.4$11.3 million and $95.1 million of Restructuring and other charges and transaction costs. Incremental SG&A expenses from the PA Consulting investment and the Buffalo Group and John Wood Group nuclear business acquisitions have been offset in part by continued reductions in personnel-related and other overhead costs resulting from our ongoing cost reduction programs, as well as COVID-19 cost mitigation efforts. Unfavorable impacts on SG&A expenses from foreign exchange were $43.9 million and $50.0$9.0 million, respectively, for the three and six months ended April 2, 2021.1, 2022 as compared to unfavorable impacts of $41.3 million and $47.4 million for the corresponding periods last year.
Net interest expense for the three and six months ended April 2, 20211, 2022 was $14.9$21.6 million and $31.0$39.5 million, respectively, an increase of $0.7$6.8 million and $3.0$8.5 million from $14.2$14.9 million and $28.0$31.0 million for the corresponding periods last year. The increase in net interest expense for the three and six month periods year over year is due to higher levels of average debt outstanding relating in part to the funding of the PA Consulting investment.investment as well as the StreetLight and BlackLynx acquisitions, in addition to higher interest rates.

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Miscellaneous income (expense) income,, net for the three and six months ended April 2, 20211, 2022 was $10.7 million and $20.4 million, respectively, in comparison to $(56.3) million and $100.0 million, respectively, a decrease of $274.1 million and an increase of $313.8 million, respectively, from $(330.4) million and $(213.7) million for the corresponding periods last year. The increasefavorable improvement of $67.0 million from the prior yearthree-month comparable period was due primarily to pre-tax unrealized losses of $29.7 million and pre-tax unrealized gains of $63.5 million for the current three and six months ended respectively, compared to $341.0 million and $241.9 millionimpacts in the prior year corresponding periods inof pre-tax unrealizedfair losses of $(29.7) million associated with changes in the fair value of our investmentformer investments in Worley stock (net of Worley stock dividend)and certain foreign currency revaluations relating to the ECR sale and pre-tax unrealizedfair value losses associated with our investment in C3 of $46.6$(34.1) million, which were both sold during fiscal year 2021. The decrease of $79.7 million from the prior year-to-date comparable period is attributable to full year pre-tax fair value gains of $63.5 million and pre-tax unrealized gains$48.6 million in the Company's previously mentioned investment holdings in Worley (net of $36.1 million for the three and six months ended respectively,Worley stock dividend) which includes impacts of certain foreign currency revaluations related to the ECR sale and C3, investment inrespectively. Additionally, the current year. The three and six months ended April 2, 2021 alsocorresponding prior year periods included pre-tax realized gains of $12.5 million related to holdings of our C3 shares sold during the period, as further discussed in Note 11 - Joint Ventures, VIEs and Other Investments. Additionally, during the six months ended April 2, 2021, the Company recorded an other-than-temporary impairment charges on itsour investment in AWE in the amountML of $5.3 million and $33.2 million, respectively, which is also included in miscellaneous income (expense), net on its consolidated statement of earnings.million.

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The Company’s effective tax rates from continuing operations for the three months ended April 1, 2022 and April 2, 2021 were 29.7% and March 27, 2020 were 18.5% and 34.6%, respectively. The Company’s effective tax rate from continuing operations forrespectively, with the change due primarily to the absence of a $7.7 million benefit the Company recognized in the three months ended April 2, 2021 was lower than the corresponding rate in the prior period primarily due to a tax expense of $15.0 million attributable to a nondeductible compensation related charge associated with the PA Consulting acquisition, resulting in a decrease in tax rate as a consequence of an overall pre-tax loss position. The current period expense was offset by a $7.7 million benefit related to a change in the Company’s assertion about the indefinite reinvestment of certain foreign unremitted earnings in India. Also, forIndia, other discrete foreign tax items and higher state taxes, partly offset by the absence in the current year of certain nondeductible compensation related charges associated with our PA Consulting investment that occurred in the three months ended March 27, 2020, the effective tax rate was impacted by amended returns for foreign tax credits and research and development credits, an India withholding tax rate change and an Internal Revenue Code section 179D energy credit. The Company is continuing to accrue taxes related to all other foreign earnings, except for certain entities in Canada.month period of fiscal 2021.
The Company's effective tax rates from continuing operations for the six months ended April 1, 2022 and April 2, 2021 were 19.1% and March 27, 2020 were 27.4% and 9.5%, respectively. The Company’s effectiverespectively, with the decrease primarily due to a tax rate from continuing operationsbenefit of $15.7 million related to the release of valuation allowance on foreign tax credits for the six months ended April 2, 2021 was higher than the corresponding rate in the prior period primarily due to the current PA Consulting compensation expense charge mentioned above1, 2022 and $7.4 million attributable to US foreign inclusions. Also contributing to the higher year to date rate is the absence of prior year favorable benefitcertain non-deductible pre-tax compensation charges associated with our investment in PA Consulting for the six month period in fiscal 2021, partly offset by the absence of $5.8 million from amended returns for foreign tax credits and research and development credits, a $4.1 million benefit related to an India withholding tax rate change and $7.0 millionthe 2021 period benefit from an Internal Revenue Code section 179D energy credit for the period ending March 27, 2020. The current year increase was further offset by a $3.6 million excess tax benefit attributable to stock compensation and a $12.1 million benefit related to a change in the Company’s assertion about indefinite reinvestment of certain foreignIndia unremitted earnings in Canada and India.
See Note 17 - Sale of Energy, Chemicals and Resources ("ECR") Business for further information on the Company's discontinued operations reporting for the sale of the ECR business.reinvestment item mentioned above.
The amount of income taxes the Company pays is subject to ongoing audits by tax jurisdictions around the world. In the normal course of business, the Company is subject to examination by tax authorities throughout the world, including such major jurisdictions as Australia, Canada, India, the Netherlands, the United Kingdom and the United States. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts, and circumstances existing at the time. The Company believes that it has adequately provided for reasonably foreseeable outcomes related to these matters. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate.

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Segment Financial Information
The following table provides selected financial information for our operating segments and includes a reconciliation of segment operating profit to total U.S. GAAP operating profit from continuing operations by including certain corporate-level expenses, Restructuring and other charges and transaction and integration costs (in thousands).

Three Months EndedSix Months Ended
April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Revenues from External Customers:
Critical Mission Solutions$1,366,313 $1,309,573 $2,528,818 $2,604,860 
People & Places Solutions2,170,356 2,139,990 4,098,502 4,226,538 
PA Consulting297,390 98,310 587,364 98,310 
Total$3,834,059 $3,547,873 $7,214,684 $6,929,708 
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
Revenues from External Customers:
Segment Operating Profit:Segment Operating Profit:
Critical Mission SolutionsCritical Mission Solutions$1,309,573 $1,243,378 $2,604,860 $2,425,835 Critical Mission Solutions$113,241 $113,933 $224,737 $224,002 
People & Places SolutionsPeople & Places Solutions2,139,990 2,183,802 4,226,538 4,361,394 People & Places Solutions191,144 202,030 382,837 398,330 
PA ConsultingPA Consulting98,310 — 98,310 — PA Consulting68,332 27,917 131,402 27,917 
Total$3,547,873 $3,427,180 $6,929,708$6,787,229
Total Segment Operating ProfitTotal Segment Operating Profit372,717 343,880 738,976 650,249 
Other Corporate Expenses (1)Other Corporate Expenses (1)(89,232)(63,327)(194,592)(133,667)
Restructuring, Transaction and Other Charges (2)Restructuring, Transaction and Other Charges (2)(117,270)(321,665)(200,836)(343,756)
Total U.S. GAAP Operating Profit (Loss)Total U.S. GAAP Operating Profit (Loss)166,215 (41,112)343,548 172,826 
Total Other (Expense) Income, net (3)Total Other (Expense) Income, net (3)(10,933)(71,169)(19,177)69,002 
Earnings Before Taxes from Continuing OperationsEarnings Before Taxes from Continuing Operations$155,282 $(112,281)$324,371 $241,828 

Three Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020
Segment Operating Profit:
Critical Mission Solutions$113,933 $84,293 $224,002 $174,715 
People & Places Solutions202,030 189,082 398,330 367,411 
PA Consulting27,917 — 27,917 — 
Total Segment Operating Profit343,880 273,375 650,249 542,126 
Other Corporate Expenses (1)(63,327)(61,216)(133,667)(127,934)
Restructuring, Transaction and Other Charges (2)(321,665)(44,381)(343,756)(95,067)
Total U.S. GAAP Operating (Loss) Profit(41,112)167,778 172,826 319,125 
Total Other (Expense) Income, net (3)(71,169)(344,583)69,002 (241,759)
(Loss) Earnings Before Taxes from Continuing Operations$(112,281)$(176,805)$241,828 $77,366 
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(1)Other corporate expenses also include intangibles amortization of $30.6$48.4 million and $22.1$30.6 million for the three months ended April 1, 2022 and April 2, 2021, and March 27, 2020, respectively, and $53.8$95.3 million and $43.9$53.8 million for the six months ended April 1, 2022 and April 2, 2021, and March 27, 2020, respectively.respectively, with the increase mainly attributable to the PA Consulting investment.
(2)Included in the three and six months ended April 1, 2022 is $91.3 million related to the final pre-tax settlement of the Legacy CH2M Matter, net of previously recorded reserves and included in the six months ended April 1, 2022 are $74.6 million of real estate impairment charges related to the Company's transformation initiatives. Included in the three and six months ended April 2, 2021 are $296.1 million and $300.2 million, respectively, of costs incurred in connection with the investment in PA Consulting, in part classified as compensation costs.
(3)The six months ended April 1, 2022 include $3.5 million in income associated with final exit activities associated with our AWE ML investment and a gain of $7.1 million related to a lease termination. The three and six months ended April 2, 2021 include $29.7 million and $(63.5) million, respectively, in fair value adjustments related to our investment in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating to the ECR sale and $34.1 million and $(48.6) million, respectively, in fair value adjustments related to our investment in C3 stock. The six months ended April 2, 2021 also includes $(33.2)$33.2 million related to impairment of our AWE Management Ltd.ML investment. The three and six months ended March 27, 2020 include revenues under the Company's TSA with Worley of $2.2 million and $14.2 million, respectively, $(341.0) million and $(241.9) million, respectively, in fair value adjustments related to our investmentinvestments in Worley stock (net of Worley stock dividend) and certain foreign currency revaluations relating toC3 were sold in fiscal 2021 and therefore there are no comparable amounts in the ECR sale, the amortization of deferred financing fees related to the CH2M acquisition of $0.1 million and $0.7 million, respectively, and the loss on settlement of the CH2M portion of the U.S. pension plan of $0 and $2.7 million, respectively.current quarter.


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Critical Mission Solutions
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
RevenueRevenue$1,309,573 $1,243,378 $2,604,860 $2,425,835 Revenue$1,366,313 $1,309,573 $2,528,818 $2,604,860 
Operating ProfitOperating Profit$113,933 $84,293 $224,002 $174,715 Operating Profit$113,241 $113,933 $224,737 $224,002 

Critical Mission Solutions (CMS) segment revenues for the three and six months ended April 2, 20211, 2022 were $1.31$1.37 billion and $2.60$2.53 billion, respectively, an increase of $66.2$56.7 million and $179.0decrease of $76.0 million, or 5.3%4.3% and 7.4%(2.9)%, from $1.24$1.31 billion and $2.43$2.60 billion for the corresponding periods last year. The increase inDuring the three and six months ended April 1, 2022, revenue was primarily attributable to incremental revenuebenefited from the Buffalo Group and John Wood Group nuclear business acquisitions. Also, there was comparable revenue growth from most elements of our legacy portfolio, driven by increased spending by customers in the U.S. government business sector although offsetand our legacy international clients, incremental revenue from recent acquisitions and a recent contract award with the Department of Energy Nuclear remediation program. Revenue during the six months ended April 1, 2022 was impacted by a few moreseveral large contracts winding down. These primarily favorable performance trends more than offset limited unfavorable COVID-19 related revenuedown in the U.S. Also, impacts mainly due to challenges from physical distancing requirements, client scheduling changes and other related factors. Impacts on revenues from favorableunfavorable foreign currency translation were approximately $20.3$10.2 million and $27.6$7.9 million for the three and six monthsix-month periods ended April 2, 2021,1, 2022, respectively, compared to $5.1$20.3 million and $6.4$27.6 million in unfavorablefavorable impacts respectively, in the corresponding prior year periods.

Operating profit for the segment was $113.9$113.2 million and $224.0$224.7 million, respectively, for the three and six months ended April 2, 2021, an1, 2022, a decrease of $0.7 million and increase of $29.6$0.7 million, or (0.6)% and 0.3%, from $113.9 million and $49.3 million, or 35.2% and 28.2%, from $84.3 million and $174.7$224.0 million for the corresponding periods last year. The increaseOperating profit levels were generally consistent and in line with prior year comparable periods presented, with the business benefiting from higher margin U.S. government business sectors as well as our recent acquisitions but with offsetting impacts from the prior year was primarily attributable to incremental operating profit from the Buffalo Group and John Wood Group nuclear business acquisitions and the continued growth in profits from our U.S. governmental business sector.large contract wind downs mentioned above. Impacts on operating profit from favorable foreign currency translation were approximately $3.2 million and $4.5 million fornot significant in the three and six months ended April 2, 2021, respectively,1, 2022, compared to immaterialfavorable impacts of approximately $3.2 million and $4.5 million in the corresponding prior year periods. Limited revenue impacts from COVID-19 mentioned above were largely offset by the Company’s limited discretionary spend actions and other areas of improved operating performance.
People & Places Solutions
Three Months EndedSix Months EndedThree Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
RevenueRevenue$2,139,990 $2,183,802 $4,226,538 $4,361,394 Revenue$2,170,356 $2,139,990 $4,098,502 $4,226,538 
Operating ProfitOperating Profit$202,030 $189,082 $398,330 $367,411 Operating Profit$191,144 $202,030 $382,837 $398,330 


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Revenues for the People & Places Solutions (P&PS) segment for the three and six months ended April 2, 2021 were1, 2022 was $2.17 billion and $4.10 billion, respectively, an increase of $30.4 million and decrease of $128.0 million, or 1.4% and (3.0)%, from $2.14 billion and $4.23 billion, respectively, a decrease of $43.8 million and $134.9 million, or (2.0)% and (3.1)%, from $2.18 billion and $4.36 billion for the corresponding periods last year. The decreasesincrease in revenue werefor the three months ended April 1, 2022 was primarily driven by growth in our advanced facilities business as compared to the prior year corresponding period. The decrease in revenue for the six months ended April 1, 2022 was primarily due to lower volume in thepass through revenues from our advanced facilities sector. Impactsbusiness as compared to the prior year corresponding period. Foreign currency translation had a $32.0 million and $34.6 million unfavorable impact on revenues fromin our international businesses for the three and six-month periods ended April 1, 2022, respectively as compared to favorable foreign currency translation were approximatelyimpacts of $55.3 million and $85.4 million for the three and six month periods ended April 2, 2021 compared to $19.7 million and $29.3 million in unfavorable impacts, respectively, in the corresponding prior year period.periods.

Operating profit for the segment for the three and six monthsmonth periods ended April 2, 2021 were1, 2022 was $191.1 million and $382.8 million, respectively, a decrease of $10.9 million and $15.5 million, or (5.4)% and (3.9)% from $202.0 million and $398.3 million, respectively, an increase of $12.9 million and $30.9 million, or 6.8% and 8.4%, from $189.1 million and $367.4 million for the corresponding periods last year. The year-over-year increasesdecrease in operating profit werefor the three months ended April 1, 2022 was driven by higher labor costs due primarily to lower travel, real estate and discretionary spending related tomoderation of COVID-19 mitigation efforts. Impactsefforts and a competitive labor market, and incremental investments to support projected top-line growth, partially offset by benefits from higher revenue growth. For the six months ended April 1, 2022, operating profit decreased year-over-year due mainly to the cost increases mentioned above for the six-month period. Foreign currency translation had a $6.7 million and $6.8 million unfavorable impact on operating profit from favorable foreign currency translation were approximately $9.6 million and $13.7 millionin our international businesses for the three and six monthsix-month periods ended April 2, 2021,1, 2022, respectively as compared to $3.2favorable impacts of $9.6 million and $4.4$13.8 million in unfavorable impacts, respectively, in the corresponding prior year periods. The unfavorable revenue impacts mentioned above were more than offset by the Company’s cost mitigation actions.

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PA Consulting

Three Months EndedSix Months EndedThree Months EndedSix Months Ended
April 2, 2021March 27, 2020April 2, 2021March 27, 2020April 1, 2022April 2, 2021April 1, 2022April 2, 2021
RevenueRevenue$98,310 $— $98,310 $— Revenue$297,390 $98,310 $587,364 $98,310 
Operating ProfitOperating Profit$27,917 $— $27,917 $— Operating Profit$68,332 $27,917 $131,402 $27,917 

Revenues for the PA Consulting segment for the three and six months ended April 2, 20211, 2022 were $297.4 million and $587.4 million, respectively, an increase of $199.1 million and $489.1 million, or 202.5% and 497.5%, from $98.3 million.million for the corresponding periods last year. Operating profit for the segment for the three and six months ended April 2, 2021 was $68.3 million and $131.4 million, respectively, an increase of $40.4 million and $103.5 million, or 144.8% and 370.7%, from $27.9 million. There were no comparablemillion for the corresponding periods last year. The increase in revenue and operating profit was due to only approximately one month of activity from the investment in PA Consulting in the prior periods due to the timing of the investment. Foreign currency translation had a $9.5 million and $2.5 million unfavorable impact on revenues and operating profit, respectively, in our international businesses for the three months ended April 1, 2022, respectively. Due to the partial period in the corresponding prior year, given the transaction closed on March 2, 2021.foreign currency impact was not significant for both revenue and operating profit.
Other Corporate Expenses
Other corporate expenses for the three and six months ended April 2, 20211, 2022 were $89.2 million and $194.6 million, respectively, an increase of $25.9 million and $60.9 million from $63.3 million and $133.7 million an increase of $2.1 million and $5.7 million from $61.2 million and $127.9 million for the corresponding periods last year. This increase was due primarily to higher intangible amortization expense from the PA Consulting investment and the Buffalo Group and John Wood Group nuclear businessother acquisitions, as well as impacts from higher Company benefit program enhancements. These increases were partly offset by employee relatedcosts and other cost reductions across the Company's corporate functions.department spend increases.
Included in other corporate expenses in the above table are costs and expenses which relate to general corporate activities as well as corporate-managed benefit and insurance programs. Such costs and expenses include: (i) those elements of SG&A expenses relating to the business as a whole; (ii) those elements of our incentive compensation plans relating to corporate personnel whose other compensation costs are not allocated to the LOBs; (iii) the amortization of intangible assets acquired as part of business combinations; (iv) the quarterly variances between the Company’s actual costs of certain of its self-insured integrated risk and employee benefit programs and amounts charged to the LOBs; and (v) certain adjustments relating to costs associated with the Company’s international defined benefit pension plans. In addition, other corporate expenses may also include from time to time certain adjustments to contract margins (both

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positive and negative) associated with projects, as well as other items, where it has been determined that such adjustments are not indicative of the performance of the related LOB.
Restructuring and Other Charges
See Note 18- Restructuring and Other Charges for information on the Company’s activity relating to restructuring and other charges.
Backlog Information
We include in backlog the total dollar amount of revenues we expect to record in the future as a result of performing work under contracts that have been awarded to us. Our policy with respect to Operations & Maintenance ("O&M") contracts, however, is to include in backlog the amount of revenues we expect to receive for one succeeding year, regardless of the remaining life of the contract. For national government programs (other than national government O&M contracts, which are subject to the same policy applicable to all other O&M contracts), our policy is to include in backlog the full contract award, whether funded or unfunded, excluding option periods. Because of variations in the nature, size, expected duration, funding commitments, and the scope of services required by our contracts, the timing of when backlog will be recognized as revenues can vary greatly between individual contracts.
Consistent with industry practice, substantially all of our contracts are subject to cancellation or termination at the option of the client, including our U.S. government work. While management uses all information available to determine backlog, at any given time our backlog is subject to changes in the scope of services to be provided as well as increases or decreases in costs relating to the contracts included therein. Backlog is not necessarily an indicator of future revenues.
Because certain contracts (e.g., contracts relating to large Engineering, Procurement & Construction ("EPC") projects as well as national government programs) can cause large increases to backlog in the fiscal period in which we recognize the award, and because many of our contracts require us to provide services that span over several fiscal

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quarters (and sometimes over fiscal years), we evaluatehave presented our backlog on a year-over-year basis, rather than on a sequential, quarter-over-quarter basis.
The following table summarizes our backlog at April 1, 2022 and April 2, 2021 and March 27, 2020 (in millions):
April 2, 2021March 27, 2020April 1, 2022April 2, 2021
Critical Mission SolutionsCritical Mission Solutions$9,779 $9,135 Critical Mission Solutions$10,556 $9,779 
People & Places SolutionsPeople & Places Solutions15,512 14,156 People & Places Solutions16,965 15,512 
PA ConsultingPA Consulting280 — PA Consulting269 280 
Total Total$25,571 $23,291  Total$27,790 $25,571 
The increase in backlog in Critical Mission Solutions (CMS) from March 27, 2020April 2, 2021 was primarily driven by success in closing on a number of key opportunities in the result ofU.S government space and the acquisition of the Buffalo Group and conversion of the other robust CMS pipeline.BlackLynx acquisition.
The increase in backlog in People & Places Solutions (P&PS) from March 27, 2020 was primarily the result of new awards in the U.S. markets.
Backlog in PA Consulting as of April 2, 2021 was $280.0 million. primarily driven by new business awards in our advanced facilities business and the StreetLight acquisition.
The PA Consulting transaction closed on March 2, 2021.backlog was consistent and in line with the prior year comparable period backlog.
Consolidated backlog differs from the Company’s remaining performance obligations as defined by ASC 606 primarily because of our national government contracts (other than national government O&M contracts). Our policy is to generally include in backlog the full contract award, unless materially large, whether funded or unfunded excluding the option periods while our remaining performance obligations represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. Additionally, the Company includes our proportionate share of backlog related to unconsolidated joint ventures which is not included in our remaining performance obligations.

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Liquidity and Capital Resources
At April 2, 2021,1, 2022, our principal sources of liquidity consisted of $893.3 million1.24 billion in cash and cash equivalents and $1.39$1.50 billion of available borrowing capacity under our $2.25 billion revolving credit agreement (the "Revolving Credit Facility"). We finance much of our operations and growth through cash generated by our operations.
The amount of cash and cash equivalents at April 2, 20211, 2022 represented an increase of $30.9$221.2 million from $862.4 million$1.01 billion at October 2, 20201, 2021, the reasons for which are described below. The Company also holds $273.6 million in restricted cash as of April 2, 2021, relating to the PA Consulting employee benefit trust, the majority which is expected to be paid out in the third fiscal quarter of 2021 and will be recorded in cash from operations.
Our net cash flow provided by operations of $350.2$446.3 million during the six months ended April 2, 20211, 2022 was favorable by $335.3$96.0 million in comparison to the cash flow used forprovided by operations of $15.0$350.2 million for the corresponding prior year period. period. This improvement was due mainly to lower useshigher operating profit levels year over year, due in part to the investment in PA Consulting. This improvement was partly offset by working capital performance year over year being impacted by higher payouts of cashemployee incentives, higher estimated tax payments and a slight increase in non-cash add backs in other working capital. The improvement due to lower usesimpacts from timing of cash was primarily due to improved receivable collections compared towith these impacts being offset in part by favorable impacts from timing of other payments on accounts payable and cash received on the previous period, along with an increase in cash from accrued liabilities primarily associated with non-cash accrualssettlement of PA Consulting compensation expense and favorability in other deferred liabilities.foreign currency forward contracts (mainly AUD).
Our net cash used for investing activities for the six months ended was $1.74 billion,$458.8 million, compared to cash used for investing activities of $365.3 million$1.74 billion in the corresponding prior year period, thewith this change due primarily to the acquisitionacquisitions of the Buffalo GroupStreetLight and BlackLynx in the first fiscal quartercurrent year and theour investment in PA Consulting and final ECR sale proceeds received in the current quarter and the acquisition of John Wood Group's Nuclear BusinessBuffalo Group in the prior year period of $286.5 million.year.
Our net cash provided by financing activities of $1.67 billion$235.1 million for the six months ended April 2, 20211, 2022 resulted mainly from net proceeds from borrowings of $1.78 billion,$387.1 million primarily in connection with the StreetLight and BlackLynx acquisitions, partly offset by cash used for share repurchases of $24.9$50.0 million, cash used for repurchase of redeemable noncontrolling interests of $35.1 million and$81.9 $57.2 million in dividends to shareholders and $9.4 million in dividends to noncontrolling interestsinterest holders. Cash provided by financing activities in the corresponding prior year period was$1.35 $1.67 billion,, due primarily to net proceeds from borrowings of $1.71$1.78 billion,, offset by cash used for share repurchases of $285.8$24.9 million and $63.5$52.4 million in dividendsdividends to shareholders and $29.4 million in net dividends to (contributions from) noncontrolling interests.interest holders.

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At April 2, 2021,1, 2022, the Company had approximately $134.7$181.3 million in cash and cash equivalents held in the U.S. and $758.6 million$1.05 billion held outside of the U.S. (primarily in the U.K., the Eurozone, Australia, India, Japan and the United Arab Emirates), which is used primarily for funding operations in those regions. Other than the tax cost of repatriating funds to the U.S. (see Note 7-7 - Income Taxes of Notes to Consolidated Financial Statements included in our 20202021 Form 10-K), there are no material impediments to repatriating these funds to the U.S.
The Company had $263.6274.6 million in lettersletters of credit outstanding at April 2, 2021.1, 2022. Of this amount, $1.7$1.7 million was issued under the Revolving Credit Facility and $261.9$272.9 million was issued under separate, committed and uncommitted letter-of-credit facilities.
On April 12, 2022, the Company paid cash of AUD640 million, or approximately $475 million using mid-April 2022 exchange rates, which represents the final pre-tax settlement of Legacy CH2M Matter. For more information please refer to Note 19 - Commitments and Contingencies and Derivative Financial Instruments.


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On February 4, 2022, the Company acquired StreetLight Data, Inc. ("StreetLight"). StreetLight is a pioneer of mobility analytics who uses its data and machine learning resources to shed light on mobility and enable users to solve complex transportation problems. The Company paid total base consideration of approximately $190.7 million in cash, and issued $0.9 million in equity and $5.2 million in in-the-money stock options to the former owners of StreetLight. The Company also paid off StreetLight's debt of approximately $1.0 million simultaneously with the consummation of the acquisition.
On November 19, 2021, a subsidiary of Jacobs acquired all outstanding shares of common stock of BlackLynx, a provider of high-performance software, to complement Jacobs' portfolio of cyber, intelligence and digital solutions. The Company paid total base consideration of approximately $235.4 million in cash to the former owners of BlackLynx. In addition, the transaction involved the potential payment of future consideration that is contingent upon the achievement of certain revenue and gross margin thresholds being achieved in calendar year 2022. The estimated fair value of the contingent consideration on the acquisition date is $0.4 million. The future contingent consideration will be paid, if and to the extent achieved, in second quarter of fiscal 2023. In conjunction with the acquisition, the Company also paid off BlackLynx's debt of approximately $5.3 million simultaneously with the consummation of the acquisition.
On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting, a UK-based leading innovation and transformation consulting firm. The total consideration paid by the Company was $1.7 billion, funded through cash on hand, proceeds from a new term loan and draws on the Company's existing revolver.revolving credit facility. Further, in connection with the transaction, an additional $266.6$261 million in investment proceeds had not yet been distributed at April 2, 2021the investment date due to continuing employment requirements.requirements of associated management owners. Consequently, this amount representsrepresented compensation expense incurred related to the investment that was expensed subsequent to the acquisition that is expected to be paiddate, and was reflected in selling, general and administrative expense and cash from operations for the third quarter of fiscal year ended October 1, 2021. The remaining 35% interest is heldwas acquired by PA Consulting employees, whose redeemable noncontrolling interests had a fair value of $581.1$582.4 million on the closing date.date, including subsequent purchase accounting adjustments. PA Consulting is accounted for as a consolidated subsidiary and as a separate operating segment under U.S. GAAP accounting rules. See Note 15- PA Consulting Business Combination for more discussion on the investment.
On January 20, 2021, the Company entered into an unsecured delayed draw term loan facility (the “2021 Term Loan Facility”) with a syndicate of financial institutions as lenders. Under the 2021 Term Loan Facility, the Company borrowed an aggregate principal amount of $200.0 million and £650.0 million. The proceeds of the term loans were used primarily to fund the investment in PA Consulting. The 2021 Term Loan Facility contains affirmative and negative covenants and events of default customary for financings of this type that are consistent with those included in the Revolving Credit Facility and the 2020 Term Loan Facility.
On November 24, 2020, a subsidiary of Jacobs completed the acquisition of Buffalo Group, a leader in advanced cyber and intelligence solutions.solutions, which allows Jacobs to further expand its cyber and intelligence solutions offerings to government clients. The Company paid total consideration of $190.1 million, which was comprised of approximately $182.4 million in cash to the former owners of Buffalo Group and contingent consideration of $7.7 million, which is expectedThe contingent consideration was subsequently recognized as an offset to selling, general and administrative expense when it was determined no amounts would be settled in fiscal 2022.paid. In conjunction with the acquisition, the Company assumed the Buffalo Group's debt of approximately $7.7 million. The Company repaid all of the assumed Buffalo Group debt by the end of the first fiscal quarter of 2021. The Company has recorded its preliminaryfinal purchase price allocation associated with the acquisition, which is summarized in Note 16- Other Business CombinationsCombinations..
On March 6, 2020, a subsidiary of Jacobs completed the acquisition of John Wood Group's nuclear consulting, remediation and program management business for an enterprise value of £246 million, or approximately $317.9 million, less cash acquired of $24.3 million. The Company has recorded its final purchase accounting allocation associated with the acquisition, which is summarized in Note 16- Other Business Combinations.

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We believe we have adequate liquidity and capital resources to fund our projected cash requirements for the next twelve months based on the liquidity provided by our cash and cash equivalents on hand, our borrowing capacity and our continuing cash from operations. We further believe that our financial resources and discretionary spend controls, as well as near term benefits from government assistance programs, will allow us to continue managing the negative impacts of the COVID-19 pandemic on our business operations for the foreseeable future, which are expectedfuture. We continue to include reduced revenue from operating activities, basedevaluate the impact of the pandemic on current assumptionsour business and expectations regarding the pandemic. We have taken actions to reduce spending more broadly across the Company, only proceeding with operating and capital spending that is critical. We also ceased all non-essential hiring and reduced discretionary expenses, including certain employee benefits and compensation through the end of fiscal 2020. In addition, as a precautionary measure, we temporarily suspended purchases under the share repurchase plan in March 2020, with such suspension remaining in effect through the third fiscal quarter of 2020. During the fourth fiscal quarter of 2020, we resumed share repurchases on a limited basis. Looking ahead, we have developed contingency plans to reduce costs further if the situation deteriorates beyond or lasts longer than current assumptions and expectations.reassess accordingly.
We were in compliance with all of our debt covenants at April 2, 2021.1, 2022.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We do not enter into derivative financial instruments for trading, speculation or other similar purposes that would expose the Company to market risk. In the normal course of business, our results of operations are exposed to risks associated with fluctuations in interest rates and currency exchange rates.

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Interest Rate Risk
Please see the Note 12-12 - Borrowings in Notes to Consolidated Financial Statements appearing under Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference, for a discussion of the Revolving Credit Facility, Term Loan Facilities and Note Purchase Agreement.
Our Revolving Credit Facility, Term Loan Facilities and certain other debt obligations are subject to variable rate interest which could be adversely affected by an increase in interest rates. As of April 2, 2021,1, 2022, we had an aggregate of $2.99$2.75 billion in outstanding borrowings under our Revolving Credit Facility and Term Loan Facilities. Interest on amounts borrowed under these agreementsagreements is subject to adjustment based on the Company’s Consolidated Leverage Ratio (as defined in the credit agreements governing the Revolving Credit Facility and the Term Loan Facilities). Depending on the Company’s Consolidated Leverage Ratio, borrowings denominated in U.S. dollars under the Revolving Credit Facility and the Term Loan Facilities bear interest at a Eurocurrency rate plus a margin of between 0.875% and 1.625% or a base rate plus a margin of between 0.0% and 0.625% including applicable margins.margins while borrowings denominated in British pounds under these respective facilities bear interest at an adjusted SONIA rate plus a margin of between 0.875% and 1.625%. Additionally, if our Consolidated Leverage Ratio exceeds a certain amount, the interest on the Senior Notes may increase by 75 basis points. However, as discussed in Note 19-19 - Commitments and Contingencies and Derivative Financial Instruments, we have entered intoare party to swap agreements with an aggregate notional value of $929.3$914.9 million to convert the variable rate interest based liabilities associated with a corresponding amount of our debt into fixed interest rate liabilities, leaving $2.06$1.84 billion in principal amount subject to variable interest rate risk.
For the six months ended April 2, 2021,1, 2022, our weighted average borrowings that are subject to floating rate exposure were approximately $870.1 million.$1.97 billion. If floating interest rates had increased by 1.00%, our interest expense for the six months ended April 2, 20211, 2022 would have increased by approximately $4.3$9.9 million.
Foreign Currency Risk
In situations where the Company incurs costs in currencies other than our functional currency, we sometimes enter into foreign exchange contracts to limit our exposure to fluctuating foreign currencies. We follow the provisions of ASC No. 815, Derivatives and Hedging in accounting for our derivative contracts. The Company has $447.4$576.5 million in notional value of exchange rate sensitive instruments at April 2, 2021.1, 2022. See Note 19-19 - Commitments and Contingencies and Derivative Financial Instruments for discussion.


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Item 4.    Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are those controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) are recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chair and Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), to allow timely decisions regarding required disclosure.
The Company’s management, with the participation of its Chair and Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), evaluated the effectiveness of the Company’s disclosure controls and procedures as defined by Rule 13a-15(e) of the Exchange Act defined above, as of April 2, 2021,1, 2022, the end of the period covered by this Quarterly Report on Form 10-Q (the “Evaluation Date”). Based on that evaluation, the Company’s management, with the participation of the Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer) concluded that the Company’s disclosure controls and procedures, as of the Evaluation Date, were effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including the Company’s Chair and Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), as appropriate to allow timely decisions regarding required disclosure.
As permitted by SEC guidance for newly acquired businesses, management’s assessment of the Company’s disclosure controls and procedures did not include an assessment of those disclosure controls and procedures of PA Consulting that are subsumed by internal control over financial reporting. PA Consulting accounted for approximately 20% of total assets as of the Evaluation Date and approximately 1% of total revenues of the Company for the six months ended on the Evaluation Date.
Changes in Internal Control Over Financial Reporting
There were no changes to our internal control over financial reporting which were identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 and 15d-15 under the Exchange Act during the quarter ended April 2, 20211, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION
Item 1.    Legal Proceedings.
The information required by this Item 1 is included in the Note 19-19 - Commitments and Contingencies and Derivative Financial Instruments included in the Notes to Consolidated Financial Statements appearing under Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
Item 1A.    Risk Factors.
Please refer to Item 1A- Risk Factors in our 20202021 Form 10-K, which is incorporated herein by reference, for a discussion of some of the factors that have affected our business, financial condition, and results of operations in the past and which could affect us in the future. There have been no material changes to those risk factors. Before making an investment decision with respect to our common stock, you should carefully consider those risk factors, as well as the financial and business disclosures contained in this Quarterly Report on Form 10-Q and our other current and periodic reports filed with the SEC.
Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds.
ThereOn February 4, 2022 the Company issued 6,620 shares of restricted stock in connection with its acquisition of Streetlight to certain stockholders in exchange for certain of their vested stock awards in StreetLight. These shares are subject to certain lockup restrictions agreed to by the Company and the shareholders. For further discussion of the StreetLight acquisition, see Note 16 - Other Business Combinations.
These shares were no salesissued in a transaction exempt from the registration requirements of unregistered equitythe Securities Act of 1933, as amended (the “Securities Act”) in reliance upon Section 4(a)(2) of the Securities Act. The recipients of the securities duringin each of these transactions represented their intentions to acquire the second fiscal quarter of 2021.securities for investment only and not with a view to or for sale in connection with any distribution thereof, and appropriate legends were placed upon the share certificates issued in these transactions.
Share Repurchases
On January 17, 2019, the Company’s Board of Directors authorized a share repurchase program of up to $1.0 billion of the Company’s common stock, to expire on January 16, 2022 (the "2019 Repurchase Authorization"). On January 16, 2020, the Company's Board of Directors authorized an additionala share repurchase program of up to $1.0 billion of the Company's common stock, to expire on January 15, 2023 (the "2020 Repurchase Authorization").
There were no share A summary of repurchases underof the 2019 and 2020 Repurchase AuthorizationsCompany’s common stock made during the second quarter of fiscal 2021.
As a precautionary measure in light of the COVID-19 pandemic, the Company temporarily suspended purchases2022 under the share repurchase plan in March 2020, with such suspension remaining in effect throughprogram is as follows:
PeriodTotal Number of Shares PurchasedAverage Price Per Share (1)Total Number of Shares Purchased under the 2020 Repurchase AuthorizationApproximate Dollar Value of Shares that May Yet Be Purchased Under the 2020 Repurchase Authorization
February 28, 2022 - April 1, 2022395,315$126.49395,315$732,922,539
(1)Includes commissions paid and calculated at the fiscal third quarter of 2020. During the fourth fiscal quarter of 2020, the Company resumedaverage price per share repurchases on a limited basis while we continue to monitor developments in fiscal 2021 with the pandemic.
TheOur share repurchase programs doprogram does not obligate the Company to purchase any shares. Share repurchases may be executed through various means including, without limitation, accelerated share repurchases, open market transactions, privately negotiated transactions, purchases pursuant to Rule 10b5-1 plans or otherwise. The authorization for the share repurchase programs may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. The timing, amount and manner of share repurchases may depend upon market conditions and economic circumstances, availability of investment opportunities, the availability and costs of financing, currency fluctuations, the market price of the Company's common stock, other uses of capital and other factors.
Item 3.    Defaults Upon Senior Securities
None.

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Item 4.     Mine Safety Disclosure.
None.
Item 5.     Other Information.
None.

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Item 6.     Exhibits.
 31.1*
 31.2*
 32.1*
 32.2*
101
The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended April 2, 2021,1, 2022, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Earnings, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags
104
The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter endedended April 2, 2021, (formatted1, 2022, (formatted as Inline XBRL and contained in Exhibit 101).

*Filed herewith


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
JACOBS ENGINEERING GROUP INC.
By:/s/ Kevin C. Berryman
Kevin C. Berryman
President
and Chief Financial Officer
(Principal Financial Officer)
Date:May 10, 20213, 2022


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