Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2021 | Jan. 28, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-7463 | |
Entity Registrant Name | JACOBS ENGINEERING GROUP INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4081636 | |
Entity Address, Address Line One | 1999 Bryan Street | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 583 – 8500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | J | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 129,216,695 | |
Entity Central Index Key | 0000052988 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Oct. 01, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 1,245,024 | $ 1,014,249 |
Receivables and contract assets | 2,992,814 | 3,101,418 |
Prepaid expenses and other | 134,165 | 176,228 |
Total current assets | 4,372,003 | 4,291,895 |
Property, Equipment and Improvements, net | 328,631 | 353,117 |
Other Noncurrent Assets: | ||
Goodwill | 7,350,494 | 7,197,000 |
Intangibles, net | 1,618,913 | 1,565,758 |
Deferred income tax assets | 102,416 | 103,193 |
Operating lease right-of-use assets | 563,124 | 650,097 |
Miscellaneous | 468,513 | 471,549 |
Total other noncurrent assets | 10,103,460 | 9,987,597 |
Assets | 14,804,094 | 14,632,609 |
Current Liabilities: | ||
Short-term debt | 53,400 | 53,456 |
Accounts payable | 816,815 | 908,441 |
Accrued liabilities | 1,486,618 | 1,533,559 |
Operating lease liability | 162,949 | 172,414 |
Contract liabilities | 605,801 | 542,054 |
Total current liabilities | 3,125,583 | 3,209,924 |
Long-term Debt | 3,073,067 | 2,839,933 |
Liabilities relating to defined benefit pension and retirement plans | 404,421 | 418,080 |
Deferred income tax liabilities | 211,900 | 214,380 |
Long-term operating lease liability | 706,288 | 758,358 |
Other deferred liabilities | 545,226 | 559,375 |
Commitments and Contingencies | ||
Redeemable Noncontrolling interests | 637,664 | 657,722 |
Capital stock: | ||
Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none | 0 | 0 |
Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding 129,153,184 shares and 128,892,540 shares as of December 31, 2021 and October 1, 2021, respectively | 129,153 | 128,893 |
Additional paid-in capital | 2,641,059 | 2,590,012 |
Retained earnings | 4,087,390 | 4,015,578 |
Accumulated other comprehensive loss | (787,656) | (794,442) |
Total Jacobs stockholders’ equity | 6,069,946 | 5,940,041 |
Noncontrolling interests | 29,999 | 34,796 |
Total Group stockholders’ equity | 6,099,945 | 5,974,837 |
Total liabilities and stockholders' equity | $ 14,804,094 | $ 14,632,609 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Oct. 01, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, issued (in shares) | 129,153,184 | 128,892,540 |
Common stock, outstanding (in shares) | 129,153,184 | 128,892,540 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 3,380,625 | $ 3,381,836 |
Direct cost of contracts | (2,584,151) | (2,749,776) |
Gross profit | 796,474 | 632,060 |
Selling, general and administrative expenses | (619,141) | (418,120) |
Operating Profit | 177,333 | 213,940 |
Other Income (Expense): | ||
Interest income | 1,501 | 1,124 |
Interest expense | (19,426) | (17,313) |
Miscellaneous income, net | 9,682 | 156,360 |
Total other (expense) income, net | (8,243) | 140,171 |
Earnings from Continuing Operations Before Taxes | 169,090 | 354,111 |
Income Tax Expense from Continuing Operations | (15,889) | (87,023) |
Net Earnings of the Group from Continuing Operations | 153,201 | 267,088 |
Net Earnings of the Group from Discontinued Operations | (232) | (14) |
Net Earnings of the Group | 152,969 | 267,074 |
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (9,252) | (10,026) |
Net Earnings Attributable to Redeemable Noncontrolling interests | (9,683) | 0 |
Net Earnings Attributable to Jacobs from Continuing Operations | 134,266 | 257,062 |
Net Earnings Attributable to Jacobs | $ 134,034 | $ 257,048 |
Net Earnings Per Share: | ||
Basic Net Earnings from Continuing Operations Per Share (in dollars per share) | $ 1.04 | $ 1.98 |
Basic Net Earnings from Discontinued Operations Per Share (in dollars per share) | 0 | 0 |
Basic Earnings Per Share (in dollars per share) | 1.04 | 1.98 |
Diluted Net Earnings from Continuing Operations Per Share (in dollars per share) | 1.03 | 1.96 |
Diluted Net Earnings from Discontinued Operations Per Share (in dollars per share) | 0 | 0 |
Diluted Earnings Per Share (in dollars per share) | $ 1.03 | $ 1.96 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Earnings of the Group | $ 152,969 | $ 267,074 |
Other Comprehensive Income: | ||
Foreign currency translation adjustment | (8,685) | 86,338 |
Gain on cash flow hedges | 8,855 | 3,583 |
Change in pension and retiree medical plan liabilities | 8,039 | (19,353) |
Other comprehensive income before taxes | 8,209 | 70,568 |
Income Tax Benefit (Expense): | ||
Foreign currency translation adjustment | 2,990 | (14,445) |
Cash flow hedges | (2,945) | 221 |
Change in pension and retiree medical plan liabilities | (1,468) | (826) |
Income Tax Expense: | (1,423) | (15,050) |
Net other comprehensive income | 6,786 | 55,518 |
Net Comprehensive Income of the Group | 159,755 | 322,592 |
Net Earnings Attributable to Noncontrolling Interests | (9,252) | (10,026) |
Net Earnings Attributable to Redeemable Noncontrolling interests | 9,683 | 0 |
Net Comprehensive Income Attributable to Jacobs | $ 140,820 | $ 312,566 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Total Jacobs Stockholders’ Equity | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning balance at Oct. 02, 2020 | $ 5,855,667 | $ 5,815,712 | $ 129,748 | $ 2,598,446 | $ 4,020,575 | $ (933,057) | $ 39,955 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) earnings | 267,074 | 257,048 | 257,048 | 10,026 | |||
Foreign currency translation adjustments, net of deferred taxes | 71,893 | 71,893 | 71,893 | ||||
Pension and retiree medical plan liability, net of deferred taxes | (20,179) | (20,179) | (20,179) | ||||
(Loss) Gain on derivatives, net of deferred taxes | 3,804 | 3,804 | 3,804 | ||||
Dividends | (34) | (34) | (34) | ||||
Noncontrolling interests - distributions and other | (6,104) | (6,104) | |||||
Stock based compensation | 11,841 | 11,841 | 11,841 | ||||
Issuances of equity securities including shares withheld for taxes | (15,794) | (15,794) | 538 | (7,674) | (8,658) | ||
Repurchases of equity securities | (24,801) | (24,801) | (251) | (5,027) | (19,523) | ||
Ending balance at Jan. 01, 2021 | 6,143,367 | 6,099,490 | 130,035 | 2,597,586 | 4,249,408 | (877,539) | 43,877 |
Beginning balance at Oct. 01, 2021 | 5,974,837 | 5,940,041 | 128,893 | 2,590,012 | 4,015,578 | (794,442) | 34,796 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net (loss) earnings | 152,969 | ||||||
Net earnings | 143,286 | 134,034 | 134,034 | 9,252 | |||
Foreign currency translation adjustments, net of deferred taxes | (5,695) | (5,695) | (5,695) | ||||
Pension and retiree medical plan liability, net of deferred taxes | 6,571 | 6,571 | 6,571 | ||||
(Loss) Gain on derivatives, net of deferred taxes | 5,910 | 5,910 | 5,910 | ||||
Dividends | (123) | (123) | (123) | ||||
Redeemable Noncontrolling interests redemption value adjustment | (15,203) | (15,203) | (15,203) | ||||
Repurchase of redeemable noncontrolling interests | 7,761 | 7,761 | 7,761 | ||||
Noncontrolling interests - distributions and other | (14,049) | (14,049) | |||||
Stock based compensation | 7,014 | 7,014 | 7,014 | ||||
Issuances of equity securities including shares withheld for taxes | (10,364) | (10,364) | 602 | 906 | (11,872) | ||
Repurchases of equity securities | 0 | 0 | (342) | 43,127 | (42,785) | ||
Ending balance at Dec. 31, 2021 | $ 6,099,945 | $ 6,069,946 | $ 129,153 | $ 2,641,059 | $ 4,087,390 | $ (787,656) | $ 29,999 |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Foreign currency translation adjustment | $ (2,990) | $ 14,445 |
Pension and retiree medical plan liability, deferred taxes | 1,468 | 826 |
Cash flow hedges | $ (2,945) | $ 221 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Cash Flows from Operating Activities: | ||
Net earnings attributable to the Group | $ 152,969 | $ 267,074 |
Depreciation and amortization: | ||
Property, equipment and improvements | 26,237 | 22,989 |
Intangible assets | 46,907 | 23,155 |
Gain on investment in equity securities | 0 | (190,368) |
Stock based compensation | 7,014 | 11,841 |
Equity in earnings of operating ventures, net of return on capital distributions | 12,749 | 1,159 |
Loss (gain) on disposals of assets, net | 151 | (134) |
Impairment of long-lived assets and equity method investment | 72,266 | 27,902 |
Deferred income taxes | (17,659) | 53,008 |
Changes in assets and liabilities, excluding the effects of businesses acquired: | ||
Receivables and contract assets, net of contract liabilities | 163,535 | 33,250 |
Prepaid expenses and other current assets | 32,286 | 25,144 |
Miscellaneous other assets | 24,618 | 16,564 |
Accounts payable | (88,470) | (63,985) |
Accrued liabilities | (91,263) | (131,576) |
Other deferred liabilities | (18,407) | 16,491 |
Other, net | (1,288) | 104 |
Net cash provided by operating activities | 321,645 | 112,618 |
Cash Flows from Investing Activities: | ||
Additions to property and equipment | (19,318) | (16,766) |
Disposals of property and equipment and other assets | 43 | 0 |
Capital contributions to equity investees, net of return of capital distributions | (480) | (3,430) |
Acquisitions of businesses, net of cash acquired | (229,813) | (173,012) |
Net cash used for investing activities | (249,568) | (193,208) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term borrowings | 637,000 | 603,500 |
Repayments of long-term borrowings | (400,287) | (500,827) |
Repayments of short-term borrowings | (5,326) | (7,675) |
Proceeds from issuances of common stock | 17,862 | 9,541 |
Common stock repurchases | 0 | (24,801) |
Taxes paid on vested restricted stock | (28,226) | (25,335) |
Cash dividends, including to noncontrolling interests | (41,565) | (35,718) |
Repurchase of redeemable noncontrolling interests | (35,095) | 0 |
Net cash provided by financing activities | 144,363 | 18,685 |
Effect of Exchange Rate Changes | 2,722 | 36,493 |
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash | 219,162 | (25,412) |
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period | 1,026,575 | 862,424 |
Cash and Cash Equivalents, including Restricted Cash, at the End of the Period | $ 1,245,737 | $ 837,012 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 1, 2021 (“2021 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 December 31, 2021, and for the three month periods ended December 31, 2021 and January 1, 2021. Our interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. 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 $234.9 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 $1.3 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 Company has recorded its preliminary purchase price allocation associated with the acquisition, which is summarized in Note 16- Other Business Combinations. 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 revolving credit facility. Further, in connection with the transaction, an additional $261 million in investment proceeds had not yet been distributed at the investment date due to continuing employment requirements of associated management owners. Consequently, this amount represented compensation expense incurred related to the investment that was expensed subsequent to the date of the transaction, and was reflected in selling, general and administrative expense and cash from operations for the fiscal year ended October 1, 2021. The remaining 35% interest was acquired by PA Consulting employees, whose redeemable noncontrolling interests had a fair value of $582.4 million on the closing date, including subsequent purchase accounting adjustments. PA Consulting is accounted for as a consolidated subsidiary and as a separate operating 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 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. The contingent consideration was subsequently recognized 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 Company has recorded its final purchase price allocation associated with the acquisition, which is summarized in Note 16- Other Business Combinations. 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 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 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, 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. |
Use of Estimates and Assumption
Use of Estimates and Assumptions | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates and Assumptions | Use of Estimates and AssumptionsThe 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 |
Fair Value and Fair Value Measu
Fair Value and Fair Value Measurements | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value and Fair Value Measurements | Fair Value and Fair Value Measurements Certain amounts included in the accompanying consolidated financial statements are presented at fair 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 2021 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 19- Commitments and Contingencies and Derivative Financial Instruments for discussion regarding the Company's derivative instruments. 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) |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2020-04, Reference Rate Reform , (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting is intended to provide relief for 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, 2022. ASU 2021-08 requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The Company adopted the new guidance in the first quarter of fiscal 2022 and the adoption had no impact on the Company's financial position, results of operations or cash flows. |
Revenue Accounting for Contract
Revenue Accounting for Contracts | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Accounting for Contracts | 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 technical, digital, p rocess, scientific and systems consulting process, scientific, and systems consulting services. We provide our services through offices and subsidiaries located primarily in North 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. The following table further disaggregates our revenue by geographic area for the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Revenues: United States $ 2,148,554 $ 2,457,041 Europe 866,351 639,315 Canada 65,039 55,627 Asia 32,087 27,405 India 22,148 14,548 Australia and New Zealand 177,652 137,408 Middle East and Africa 68,794 50,492 Total $ 3,380,625 $ 3,381,836 Contract Liabilities Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. Revenue recognized for the three months ended December 31, 2021 and January 1, 2021 that was included in the contract liability balance on October 1, 2021 and October 2, 2020 was $291.5 million and $259.0 million respectively. Remaining Performance Obligation The Company’s remaining performance obligations as of December 31, 2021 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had approximately $13.2 billion in remaining performance obligations as of December 31, 2021. The Company expects to recognize approximately 57% of our remaining performance obligations into revenue within the next twelve months and the remaining 43% thereafter. 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. |
Earnings Per Share and Certain
Earnings Per Share and Certain Related Information | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share and Certain Related Information | 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 and the preferred redeemable noncontrolling interests redemption value adjustment associated with the PA Consulting transaction. The following table reconciles the denominator used to compute basic EPS to the denominator used to compute diluted EPS for the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Numerator for Basic and Diluted EPS: Net earnings from continuing operations allocated to common stock for EPS calculation $ 134,266 $ 257,062 Net earnings from discontinued operations allocated to common stock for EPS calculation $ (232) $ (14) Net earnings allocated to common stock for EPS calculation $ 134,034 $ 257,048 Denominator for Basic and Diluted EPS: Shares used for calculating basic EPS attributable to common stock 129,342 129,968 Effect of dilutive securities: Stock compensation plans 952 1,182 Shares used for calculating diluted EPS attributable to common stock 130,294 131,150 Net Earnings Per Share: Basic Net Earnings from Continuing Operations Per Share $ 1.04 $ 1.98 Basic Net Earnings from Discontinued Operations Per Share $ — $ — Basic Earnings Per Share $ 1.04 $ 1.98 Diluted Net Earnings from Continuing Operations Per Share $ 1.03 $ 1.96 Diluted Net Earnings from Discontinued Operations Per Share $ — $ — Diluted Earnings Per Share $ 1.03 $ 1.96 Share Repurchases On January 16, 2020, 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 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 as depicted in the table below. The following table summarizes the activity under the 2020 Repurchase Authorization through the first fiscal quarter of 2022: Amount Authorized Average Price Per Share (1) Shares Repurchased Total Shares Retired $1,000,000,000 $137.55 342,054 342,054 (1) Includes commissions paid and calculated at the average price per share As of December 31, 2021, the Company has $782.9 million remaining under the 2020 Repurchase Authorization. Our share repurchase program 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. Dividends On January 26, 2022, the Company’s Board of Directors declared a quarterly dividend of $0.23 per share of the Company’s common stock to be paid on March 25, 2022, to shareholders of record on the close of business on February 25, 2022. Future dividend declarations are subject to review and approval by the Company’s Board of Directors. Dividends paid through the first fiscal quarter of 2022 and the preceding fiscal year are as follows: Declaration Date Record Date Payment Date Cash Amount (per share) September 23, 2021 October 15, 2021 October 29, 2021 $0.21 July 14, 2021 July 30, 2021 August 27, 2021 $0.21 April 22, 2021 May 28, 2021 June 25, 2021 $0.21 January 27, 2021 February 26, 2021 March 26, 2021 $0.21 September 17, 2020 October 2, 2020 October 30, 2020 $0.19 |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles The carrying value of goodwill and appearing in the accompanying Consolidated Balance Sheets at December 31, 2021 and October 1, 2021 was as follows (in thousands): Critical Mission Solutions People & Places Solutions PA Consulting Total Balance October 1, 2021 $ 2,550,631 $ 3,240,783 $ 1,405,586 $ 7,197,000 Acquired 158,498 — — 158,498 Foreign Exchange Impact (698) (1,335) (5,168) (7,201) Post-Acquisition Adjustments — — 2,197 2,197 Balance December 31, 2021 $ 2,708,431 $ 3,239,448 $ 1,402,615 $ 7,350,494 The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at December 31, 2021 and October 1, 2021 (in thousands): Customer Relationships, Contracts and Backlog Developed Technology Trade Names Total Balances October 1, 2021 $ 1,309,061 $ 40,020 $ 216,677 $ 1,565,758 Amortization (42,965) (1,119) (2,823) (46,907) Acquired 88,002 15,539 — 103,541 Foreign currency translation (2,734) (20) (725) (3,479) Balances December 31, 2021 $ 1,351,364 $ 54,420 $ 213,129 $ 1,618,913 The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 2022 and for the succeeding years. The amounts below include preliminary amortization estimates for the BlackLynx and PA Consulting opening balance sheet fair values that are still preliminary and are subject to change. Fiscal Year (in millions) 2022 $ 144.1 2023 191.8 2024 191.6 2025 191.2 2026 176.4 Thereafter 723.8 Total $ 1,618.9 |
Receivables and Contract Assets
Receivables and Contract Assets | 3 Months Ended |
Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Receivables and Contract Assets | Receivables and Contract Assets The following table presents the components of receivables appearing in the accompanying Consolidated Balance Sheets at December 31, 2021 and October 1, 2021, as well as certain other related information (in thousands): December 31, 2021 October 1, 2021 Components of receivables and contract assets: Amounts billed, net $ 1,311,468 $ 1,278,087 Unbilled receivables and other 1,215,690 1,343,588 Contract assets 465,656 479,743 Total receivables and contract assets, net $ 2,992,814 $ 3,101,418 Other information about receivables: Amounts due from the United States federal government, included above, net of contract liabilities $ 629,365 $ 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 provided ahead 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table presents the Company's roll forward of accumulated other comprehensive income (loss) after-tax as of December 31, 2021 (in thousands): Change in Pension Liabilities Foreign Currency Translation Adjustment Gain/(Loss) on Cash Flow Hedges Total Balance at October 1, 2021 $ (394,561) $ (407,240) $ 7,359 $ (794,442) Other comprehensive income (loss) 6,571 (5,695) 3,973 4,849 Reclassifications from accumulated other comprehensive income (loss) — — 1,937 1,937 Balance at December 31, 2021 $ (387,990) $ (412,935) $ 13,269 $ (787,656) |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates from continuing operations for the three months ended December 31, 2021 and January 1, 2021 were 9.4% and 24.6%, respectively. The Company’s effective tax rate from continuing operations for the three months ended December 31, 2021 was lower than the corresponding rate in the prior period primarily due to a current year tax benefit of $15.7 million related to the release of previously reserved foreign tax credits, $4.2 million excess tax benefit attributable to stock compensation, and $4.0 million benefit from filing amended status returns. 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. |
Joint Ventures and VIE's and Ot
Joint Ventures and VIE's and Other Investments | 3 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures and VIE's and Other Investments | 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. 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 results 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 $266.8 million and $208.7 million, respectively, as of December 31, 2021 and $289.8 million and $220.8 million, respectively, as of October 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 was acquired by PA Consulting employees. PA Consulting is accounted for as a consolidated subsidiary under U.S. GAAP accounting rules. See Note 15- PA Consulting Business Combination for more discussion on the acquisition. 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 $114.2 million and $127.5 million, respectively, as of December 31, 2021, and $115.1 million and $129.5 million, respectively, as of October 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 December 31, 2021, the Company’s equity method investments exceeded its share of venture net assets by $36.6 million. Our investments in equity method joint ventures on the Consolidated Balance Sheets as of December 31, 2021 and October 1, 2021 were $106.7 million and $121.3 million, respectively. During the three months ended December 31, 2021 and January 1, 2021, we recognized income from equity method joint ventures of $6.8 million and $18.3 million, respectively. Accounts receivable from unconsolidated joint ventures accounted for under the equity method is $16.1 million and $19.7 million as of December 31, 2021 and October 1, 2021, respectively. The Company held a 24.5% interest in AWE Management Ltd ("AWE ML") that was accounted for under the equity method. AWE ML was previously under a contractual operating arrangement with the UK Ministry of Defence (MoD) with multiple years remaining under the arrangement, and during fiscal 2021, the MoD unexpectedly announced plans to change its operating agreements with AWE ML that resulted in the early termination of the current contract in 2021. During the three months ended January 1, 2021, the Company recorded an other-than-temporary impairment charge on its investment in AWE ML in the amount of $27.9 million, which was included in miscellaneous income (expense), net in the consolidated statement of earnings as a result of the contract termination. |
Borrowings
Borrowings | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings At December 31, 2021 and October 1, 2021, long-term debt consisted of the following (principal amounts in thousands): Interest Rate Maturity December 31, 2021 October 1, 2021 Revolving Credit Facility Benchmark + applicable margin (1) (2) March 2024 $ 577,794 $ 327,794 2021 Term Loan Facility Benchmark + applicable margin (1) (3) March 2024 1,078,800 1,081,724 2020 Term Loan Facility Benchmark + applicable margin (1) (4) March 2025 (5) 974,550 988,940 Fixed-rate notes due: Senior Notes, Series A 4.27% May 2025 190,000 190,000 Senior Notes, Series B 4.42% May 2028 180,000 180,000 Senior Notes, Series C 4.52% May 2030 130,000 130,000 Less: Current Portion (5) (53,400) (53,456) Less: Deferred Financing Fees (4,677) (5,069) Total Long-term debt, net $ 3,073,067 $ 2,839,933 (1) During the three months ended December 31, 2021, 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%. The applicable LIBOR rates including applicable margins at December 31, 2021 and October 1, 2021 were approximately 1.46% and 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 December 31, 2021. (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%. The applicable LIBOR rate including applicable margins for borrowings denominated in U.S. dollars at December 31, 2021 and October 1, 2021 was approximately 1.48% 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 1.60% at December 31, 2021. (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%. The applicable LIBOR rates including applicable margins for borrowings denominated in U.S. dollars at December 31, 2021 and October 1, 2021 were approximately 1.48% and 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 1.55% at December 31, 2021. (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 December 31, 2021. The Revolving Credit Facility permits the Company to borrow under two 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. 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 December 31, 2021. 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 o f $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 December 31, 2021. 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 $547.5 million at December 31, 2021, based on Level 2 inputs. The fair value is determined by discounting future cash flows using interest rates available for issuances with sim ilar terms and average maturities. The Company has issue d $1.7 million in letters of credit under the Revolving Credit Facility, leaving $1.67 billion of available borrowing capacity under the Revolving Credit Facility at December 31, 2021. In addition, the Company had issued $272.0 million u nder separate, committed and uncommitted letter-of-credit facilities for total issued letters of credit of $273.7 million a t December 31, 2021. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LeasesThe 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. 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 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. The components of lease expense (reflected in selling, general and administrative expenses) for th e three months ended December 31, 2021 and January 1, 2021 were as follows (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Lease expense Operating lease expense $ 40,538 $ 39,444 Variable lease expense 7,084 8,183 Sublease income (3,668) (3,396) Total lease expense $ 43,954 $ 44,231 Supplemental information related to the Company's leases for the three months ended December 31, 2021 was as follows (in thousands): Three Months Ended December 31, 2021 Cash paid for amounts included in the measurements of lease liabilities $ 65,430 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,262 Weighted average remaining lease term - operating leases 7 years Weighted average discount rate - operating leases 2.7% 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 Year Operating Leases 2022 $ 141,807 2023 159,136 2024 146,064 2025 122,723 2026 105,223 Thereafter 278,300 953,253 Less Interest (84,016) $ 869,237 Right-of-Use and Other Long-Lived Asset Impairment In the first quarter of 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 quarter 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 first quarter of fiscal 2022 of $72.3 million, which is included in selling, general and administrative expenses in the accompanying statement of earnings for the current fiscal quarter. The impairment loss recorded includes $54.9 million related to right-of-use lease assets and $17.4 million related to other long-lived assets, including property, equipment and improvements and leasehold improvements. The 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 periods and discount rates that reflect the level of risk associated with receiving future cash flows. |
Leases | LeasesThe 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. 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 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. The components of lease expense (reflected in selling, general and administrative expenses) for th e three months ended December 31, 2021 and January 1, 2021 were as follows (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Lease expense Operating lease expense $ 40,538 $ 39,444 Variable lease expense 7,084 8,183 Sublease income (3,668) (3,396) Total lease expense $ 43,954 $ 44,231 Supplemental information related to the Company's leases for the three months ended December 31, 2021 was as follows (in thousands): Three Months Ended December 31, 2021 Cash paid for amounts included in the measurements of lease liabilities $ 65,430 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,262 Weighted average remaining lease term - operating leases 7 years Weighted average discount rate - operating leases 2.7% 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 Year Operating Leases 2022 $ 141,807 2023 159,136 2024 146,064 2025 122,723 2026 105,223 Thereafter 278,300 953,253 Less Interest (84,016) $ 869,237 Right-of-Use and Other Long-Lived Asset Impairment In the first quarter of 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 quarter 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 first quarter of fiscal 2022 of $72.3 million, which is included in selling, general and administrative expenses in the accompanying statement of earnings for the current fiscal quarter. The impairment loss recorded includes $54.9 million related to right-of-use lease assets and $17.4 million related to other long-lived assets, including property, equipment and improvements and leasehold improvements. The 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 periods and discount rates that reflect the level of risk associated with receiving future cash flows. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The following table presents the components of net periodic pension benefit recognized in earnings during the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Component: Service cost $ 1,709 $ 1,735 Interest cost 13,784 11,785 Expected return on plan assets (23,263) (25,427) Amortization of previously unrecognized items 3,092 4,032 Total net periodic pension benefit recognized $ (4,678) $ (7,875) 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. The following table presents certain information regarding the Company’s cash contributions to our pension plans for fiscal 2022 (in thousands): Cash contributions made during the first three months of fiscal 2022 $ 9,488 Cash contributions projected for the remainder of fiscal 2022 26,703 Total $ 36,191 |
PA Consulting Business Combinat
PA Consulting Business Combination | 3 Months Ended |
Dec. 31, 2021 | |
Business Acquisition [Line Items] | |
PA Consulting Business Combination | Other Business Combinations StreetLight Data, Inc. On February 4, 2022, the Company acquired StreetLight Data, Inc., ("StreetLight") for a purchase price based on an enterprise value of $209 million on a cash-free, debt-free basis, subject to customary post-closing adjustments. 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. 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 $234.9 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 $1.3 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 Receivables 7.7 Property, equipment and improvements, net 0.8 Goodwill 158.5 Identifiable intangible assets 103.5 Prepaid expenses and other current assets 3.2 Total Assets $ 278.8 Liabilities Accounts payable, accrued expenses and other current liabilities $ 19.5 Other long term liabilities 23.1 Total Liabilities 42.6 Net assets acquired $ 236.2 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. 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 technology and have estimated lives of 12 and 15 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. Buffalo Group On November 24, 2020, a subsidiary of Jacobs completed the acquisition of Buffalo Group, a leader in advanced cyber and intelligence 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. The contingent consideration was subsequently recognized in fiscal 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 following summarizes the fair values of Buffalo Group's assets acquired and liabilities assumed as of the acquisition date (in millions): Assets Cash and cash equivalents $ 8.4 Receivables 19.2 Property, equipment and improvements, net 2.3 Goodwill 130.7 Identifiable intangible assets 74.0 Prepaid expenses and other current assets 6.2 Total Assets $ 240.8 Liabilities Accounts payable, accrued expenses and other current liabilities $ 46.9 Other long term liabilities 3.8 Total Liabilities 50.7 Net assets acquired $ 190.1 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 for tax purposes. The Company has completed its final assessment of the fair values of Buffalo Group'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 final purchase price allocation, as summarized in the fair values of Buffalo Group's assets acquired and liabilities assumed as of the acquisition date set forth above. Identifiable intangibles are customer relationships, contracts and backlog and have estimated lives of 9 years. No summarized unaudited pro forma results are provided for the Buffalo Group acquisition due to the immateriality of this acquisition relative to the Company's consolidated financial position and results of operations. |
PA Consulting Group Limited | |
Business Acquisition [Line Items] | |
PA Consulting Business Combination | 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 revolving credit facility. Further, in connection with the transaction, an estimated additional $261 million in investment proceeds had not yet been distributed at the investment date due to continuing employment requirements of associated management owners. Consequently, this amount represented compensation expense incurred related to the investment that was expensed subsequent to the date of the transaction, and was reflected in selling, general and administrative expense on the consolidated income statement for the fiscal year ended October 1, 2021. The remaining 35% interest was acquired by PA Consulting employees, whose redeemable noncontrolling interests had a fair value of $582.4 million on the closing date, including subsequent purchase accounting adjustments. PA Consulting is accounted for as a consolidated subsidiary and as a separate operating segment. See Note 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): Assets Cash and cash equivalents $ 134.9 Receivables 164.9 Property, equipment and improvements, net 40.5 Goodwill 1,450.5 Identifiable intangible assets 1,004.2 Prepaid expenses and other current assets 9.5 Miscellaneous long term assets 83.7 Total Assets $ 2,888.2 Liabilities Accounts payable $ 6.5 Accrued liabilities and other current liabilities 349.2 Other long term liabilities 248.2 Total Liabilities $ 603.9 Redeemable Noncontrolling interests 582.4 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. The final purchase price allocation could result in adjustments to certain assets and liabilities, including the residual amount allocated to goodwill. Since the initial preliminary estimates reported in the second quarter of fiscal 2021, the Company has updated certain provisional amounts reflected in the preliminary purchase price allocation, as summarized in the estimated fair values of PA Consulting assets acquired and liabilities assumed above. See below for further discussion on updates to 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). 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 Three Months Ended January 1, 2021 Revenues $ 3,632.7 Net earnings (loss) of the Group $ 282.1 Net earnings attributable to Jacobs $ 264.6 Net earnings attributable to Jacobs per share: Basic earnings per share $ 2.04 Diluted earnings per share $ 2.02 Income tax expense for the three -month p ro forma period ended January 1, 2021 wa s $76.7 million. Redeemable Noncontrolling Interest In connection with the PA Consulting investment, the Company recorded redeemable noncontrolling interests, including subsequent purchase accounting adjustments, representing the noncontrolling interest holders' equity interest in the form of preferred and common shares of PA Consulting, with substantially all of the value associated with these interests allocable to the preferred shares. During the first quarter of fiscal 2022, PA Consulting repurchased certain shares of the redeemable noncontrolling interest holders for $35.1 million in cash. The difference between the cash purchase price and the recorded book value of these repurchased interests was recorded in the Company’s consolidated retained earnings. Changes in the redeemable noncontrolling interest d uring the three months ended December 31, 2021 are as follows (in thousands): Balance at October 1, 2021 $ 657,722 Accrued Preferred Dividend to Preference Shareholders 16,687 Attribution of Preferred Dividend to Common Shareholders (16,687) Net income attributable to redeemable noncontrolling interest to Common Shareholders 9,683 Redeemable Noncontrolling interests redemption value adjustment 15,203 Repurchase of redeemable noncontrolling interests (42,856) Cumulative translation adjustment and other (2,088) Balance at December 31, 2021 $ 637,664 In addition, certain employees and nonemployees of PA Consulting are eligible to receive equity-based incentive grants in the future under the terms of the applicable agreements. Employee Benefit Trust PA Consulting is party to an employee benefit trust that is a separately administered discretionary trust for the benefit of employees and is consolidated under U.S. G AAP. At December 31, 2021, t he Company held $0.7 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. |
Other Business Combinations
Other Business Combinations | 3 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Other Business Combinations | Other Business Combinations StreetLight Data, Inc. On February 4, 2022, the Company acquired StreetLight Data, Inc., ("StreetLight") for a purchase price based on an enterprise value of $209 million on a cash-free, debt-free basis, subject to customary post-closing adjustments. 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. 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 $234.9 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 $1.3 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 Receivables 7.7 Property, equipment and improvements, net 0.8 Goodwill 158.5 Identifiable intangible assets 103.5 Prepaid expenses and other current assets 3.2 Total Assets $ 278.8 Liabilities Accounts payable, accrued expenses and other current liabilities $ 19.5 Other long term liabilities 23.1 Total Liabilities 42.6 Net assets acquired $ 236.2 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. 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 technology and have estimated lives of 12 and 15 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. Buffalo Group On November 24, 2020, a subsidiary of Jacobs completed the acquisition of Buffalo Group, a leader in advanced cyber and intelligence 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. The contingent consideration was subsequently recognized in fiscal 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 following summarizes the fair values of Buffalo Group's assets acquired and liabilities assumed as of the acquisition date (in millions): Assets Cash and cash equivalents $ 8.4 Receivables 19.2 Property, equipment and improvements, net 2.3 Goodwill 130.7 Identifiable intangible assets 74.0 Prepaid expenses and other current assets 6.2 Total Assets $ 240.8 Liabilities Accounts payable, accrued expenses and other current liabilities $ 46.9 Other long term liabilities 3.8 Total Liabilities 50.7 Net assets acquired $ 190.1 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 for tax purposes. The Company has completed its final assessment of the fair values of Buffalo Group'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 final purchase price allocation, as summarized in the fair values of Buffalo Group's assets acquired and liabilities assumed as of the acquisition date set forth above. Identifiable intangibles are customer relationships, contracts and backlog and have estimated lives of 9 years. No summarized unaudited pro forma results are provided for the Buffalo Group acquisition due to the immateriality of this acquisition relative to the Company's consolidated financial position and results of operations. |
Sale of Energy, Chemicals and R
Sale of Energy, Chemicals and Resources ("ECR") Business | 3 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Energy, Chemicals and Resources (ECR) Business | 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”). 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. As a result of the ECR sale, the Company recognized a pre-tax gain of approximately $1.1 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 year ended October 1, 2021. In the second quarter of fiscal 2021, the Company received 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. Investment in Worley Stock As discussed above, the Company held ordinary shares of Worley that it received in connection with the ECR sale. Dividend income, realized gains and losses on sale and unrealized gains and losses on changes in fair value of Worley shares were recognized in miscellaneous income (expense), net in continuing operations prior to sale. The Company's investment in Worley was measured at fair value through net income as it was an equity investment with a readily determinable fair value based on quoted market prices and for the three months ended January 1, 2021, the Company recognized a $107.7 million gain associated with share price and currency changes on this investment. The Company completed the sale of all ordinary shares of Worley it held in the fourth fiscal quarter of fiscal 2021. |
Restructuring and Other Charges
Restructuring and Other Charges | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges During first quarter fiscal 2022, the Company implemented certain restructuring and integration initiatives relating to the BlackLynx acquisition, the activities of which are expected to be substantially completed before the end of fiscal 2022. Also, during first quarter 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 end before the end of fiscal 2022. Additionally, the Company recorded impairment charges on its investment in AWE during fiscal 2021. See related discussion in Note 11- Joint ventures, VIEs and other investments. 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 have been substantially completed. As part of the Company's acquisition of CH2M Hill Companies, Ltd. ("CH2M") during fiscal 2018, the Company implemented certain restructuring plans that were comprised mainly of severance and lease abandonment programs as well as integration activities involving the engagement of professional services and internal personnel dedicated to the Company's integration management efforts. These activities have continued through fiscal 2021 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, John Wood Group's nuclear business, Buffalo Group and BlackLynx acquisitions and the PA Consulting investment, the ECR sale and the Company's first quarter fiscal 2022 transformation initiatives relating to real estate and other staffing programs and impairment of the AWE Management Ltd. investment for the three months ended December 31, 2021 and the CH2M, KeyW John Wood Group's nuclear business and Buffalo Group acquisitions, the ECR sale and the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate and other staffing programs and impairment of AWE Management Ltd. investment for the three months ended January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Critical Mission Solutions $ 1,153 $ 3,209 People & Places Solutions 61,169 5,167 PA Consulting 199 — Corporate 6,838 40,017 Total (1) $ 69,359 $ 48,393 (1) For the three months ended December 31, 2021 and January 1, 2021, amounts include $77.9 million and $20.5 million, respectively, in items impacting operating profit, along with items recorded in other income (expense), net, which includes $1.7 million in income associated with final distributions from the exit of our AWE investment and a $(27.9) million charge, respectively, related to the impairment charges on our AWE Management Ltd. investment and a gain of $6.9 million related to a lease termination which is reflected in other income (expense) for the three months ended January 1, 2021. See Note 20 - Segment Information. The activity in the Company’s accruals for restructuring and other charges for the three months ended December 31, 2021 is as follows (in thousands): Balance at October 1, 2021 $ 14,031 Net (Credits) Charges (1) (1,594) Payments and other (1,672) Balance at December 31, 2021 $ 10,765 (1) Excludes $70,953 in other net charges associated mainly with real estate related impairments and other transformation activities described above. The following table summarizes the Restructuring and other charges by major type of costs for the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Lease Abandonments and Impairments $ 65,542 $ 148 Voluntary and Involuntary Terminations 563 9,503 Outside Services 4,676 7,399 Other (1) (1,422) 31,343 Total $ 69,359 $ 48,393 (1) Includes $(27.9) million related to the impairment charges on our AWE Management Ltd. investment for the three months ended January 1, 2021. Cumulative amounts incurred to date under our various restructuring and other activities described above by each major type of cost as of December 31, 2021 are as follows (in thousands): Lease Abandonments and Impairments $ 383,341 Voluntary and Involuntary Terminations 145,305 Outside Services 298,670 Other 143,557 Total $ 970,873 |
Commitments and Contingencies a
Commitments and Contingencies and Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies and Derivative Financial Instruments | 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 Compan y'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. The Company is party to interest rate swap agreements and a cross-currency swap agreement with notional values of $795.7 million and $127.8 million, respectively, as of December 31, 2021 to manage the interest rate exposure on our variable rate loans and the 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 liabilities into fixed rate liabilities 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. For U.S. dollar denominated interest rate swap agreements, the Company receives the one month LIBOR rate and pays monthly a fixed rate ranging from 0.704% to 1.116%. For interest rate swaps denominated in British pounds, the Company receives a one month adjusted SONIA rate and pays 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 0.726% to 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 December 31, 2021 and October 1, 2021 was $11.2 million and $(0.8) million, respectively, of which $(7.4) million is inc luded in other deferred liabilities and $18.6 million is included in miscellaneous other assets on the consolidated balance sheets at December 31, 2021. As of October 1, 2021, $(11.0) million is inc luded in other deferred liabilities 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 $13.3 million and $7.4 million, net of tax, and was included in accumulated other comprehensive inc ome as of December 31, 2021 and October 1, 2021, respectively . Additionally, the Company held foreign exchange forward contracts in currenc ies that support our operations, in cluding British Pound, Euro, Australian Dollar and other currencies, with notional values of $503.5 million at December 31, 2021 and $506.5 million at October 1, 2021 . The length of these contracts currently ranges from one October 1, 2021 w as $53.8 million and $55.5 million , respectively, which is included in current assets within re ceivables 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. 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 o bservable 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. 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 li ability 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 December 31, 2021 and October 1, 2021, the Company had issued and outstanding approximate ly $273.7 million and $263.8 million , respectively, in LOCs and $2.3 billion an d $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. 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. 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. In August 2017, the Consortium filed an International Chamber of Commerce arbitration against JKC and is seeking compensatory damages in the amount of approximately $530.0 million for repudiatory breach or, in the alternative, seeking damages for unresolved contract claims 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 favor of the Consortium was issued. JKC appealed the decision, a hearing on the appeal took place in March 2020 and a decision was handed down in July 2020 denying JKC’s appeal in its entirety. The Consortium has denied liability and is vigorously defending JKC's claims and pursuing its affirmative claims against JKC. Based on 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 15- Other Business Combinations in the Company's fiscal 2021 Form 10-K for further information related to CH2M contingencies. 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 lawsuit 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’ nuisance cause of action, which plaintiffs voluntarily dismissed in July 2021. Finally, in August 2021, a resident of Roane County filed an action 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 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 allegations asserted in all of the above matters and is vigorously defending these 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. On October 31, 2019, the Company received a request from the Enforcement Division of the Securities and Exchange Commission ("the SEC") for the 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 continuing to produce information and documents in its 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. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's three operating segments are comprised of its two global lines of business ("LOBs"): Critical Mission Solutions ("CMS") and People & Places Solutions ("P&PS") and its majority investment in 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 comprising each 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 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 segment 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 operating 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 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) and transaction and integration costs (in thousands). For the Three Months Ended December 31, 2021 January 1, 2021 Revenues from External Customers: Critical Mission Solutions $ 1,162,505 $ 1,295,287 People & Places Solutions 1,928,146 2,086,549 PA Consulting 289,974 — Total $ 3,380,625 $ 3,381,836 For the Three Months Ended December 31, 2021 January 1, 2021 Segment Operating Profit: Critical Mission Solutions $ 111,496 $ 110,072 People & Places Solutions 191,692 196,300 PA Consulting 63,071 — Total Segment Operating Profit 366,259 306,372 Other Corporate Expenses (1) (105,360) (70,341) Restructuring, Transaction and Other Charges (2) (83,566) (22,091) Total U.S. GAAP Operating Profit 177,333 213,940 Total Other (Expense) Income, net (3) (8,243) 140,171 Earnings from Continuing Operations Before Taxes $ 169,090 $ 354,111 (1) Other corporate expenses also include intangibles amortization of $46.9 million and $23.2 million for the three months ended December 31, 2021 and January 1, 2021, respectively, with this increase mainly attributable to the PA Consulting investment. (2) Included in the three months ended December 31, 2021 is $72.3 million of real estate impairment charges related to the Company's transformation initiatives. (3) The three months ended December 31, 2021 include $1.7 million in income associated with final distributions from the exit of our AWE investment and a gain of $6.9 million related to a lease termination. The three months ended January 1, 2021 include $93.1 million 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, $82.6 million in fair value adjustments related to our investment in C3 stock and $(27.9) million related to impairment charges on our AWE Management Ltd. investment. The investments in Worley and C3 were sold in fiscal 2021 and therefore there are no comparable amounts in the 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 the further description o f results of operations for our operating segments in Item 2- Management’s Discussion and Analysis of Financial Condition and Results of Operations . |
Use of Estimates and Assumpti_2
Use of Estimates and Assumptions (Policies) | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 |
Fair Value and Fair Value Measurements | Certain amounts included in the accompanying consolidated financial statements are presented at fair 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 2021 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 19- Commitments and Contingencies and Derivative Financial Instruments for discussion regarding the Company's derivative instruments. 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) |
New Accounting Pronouncements | ASU 2020-04, Reference Rate Reform , (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting is intended to provide relief for 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, 2022. ASU 2021-08 requires contract assets and contract liabilities (i.e., deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers. Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. The Company adopted the new guidance in the first quarter of fiscal 2022 and the adoption had no impact on the Company's financial position, results of operations or cash flows. |
Revenue Accounting for Contra_2
Revenue Accounting for Contracts (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table further disaggregates our revenue by geographic area for the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Revenues: United States $ 2,148,554 $ 2,457,041 Europe 866,351 639,315 Canada 65,039 55,627 Asia 32,087 27,405 India 22,148 14,548 Australia and New Zealand 177,652 137,408 Middle East and Africa 68,794 50,492 Total $ 3,380,625 $ 3,381,836 |
Earnings Per Share and Certai_2
Earnings Per Share and Certain Related Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | The following table reconciles the denominator used to compute basic EPS to the denominator used to compute diluted EPS for the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Numerator for Basic and Diluted EPS: Net earnings from continuing operations allocated to common stock for EPS calculation $ 134,266 $ 257,062 Net earnings from discontinued operations allocated to common stock for EPS calculation $ (232) $ (14) Net earnings allocated to common stock for EPS calculation $ 134,034 $ 257,048 Denominator for Basic and Diluted EPS: Shares used for calculating basic EPS attributable to common stock 129,342 129,968 Effect of dilutive securities: Stock compensation plans 952 1,182 Shares used for calculating diluted EPS attributable to common stock 130,294 131,150 Net Earnings Per Share: Basic Net Earnings from Continuing Operations Per Share $ 1.04 $ 1.98 Basic Net Earnings from Discontinued Operations Per Share $ — $ — Basic Earnings Per Share $ 1.04 $ 1.98 Diluted Net Earnings from Continuing Operations Per Share $ 1.03 $ 1.96 Diluted Net Earnings from Discontinued Operations Per Share $ — $ — Diluted Earnings Per Share $ 1.03 $ 1.96 |
Share Repurchases | The following table summarizes the activity under the 2020 Repurchase Authorization through the first fiscal quarter of 2022: Amount Authorized Average Price Per Share (1) Shares Repurchased Total Shares Retired $1,000,000,000 $137.55 342,054 342,054 (1) Includes commissions paid and calculated at the average price per share |
Dividends Declared | Dividends paid through the first fiscal quarter of 2022 and the preceding fiscal year are as follows: Declaration Date Record Date Payment Date Cash Amount (per share) September 23, 2021 October 15, 2021 October 29, 2021 $0.21 July 14, 2021 July 30, 2021 August 27, 2021 $0.21 April 22, 2021 May 28, 2021 June 25, 2021 $0.21 January 27, 2021 February 26, 2021 March 26, 2021 $0.21 September 17, 2020 October 2, 2020 October 30, 2020 $0.19 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill by Reportable Segment Appearing in Accompanying Consolidated Balance Sheets | The carrying value of goodwill and appearing in the accompanying Consolidated Balance Sheets at December 31, 2021 and October 1, 2021 was as follows (in thousands): Critical Mission Solutions People & Places Solutions PA Consulting Total Balance October 1, 2021 $ 2,550,631 $ 3,240,783 $ 1,405,586 $ 7,197,000 Acquired 158,498 — — 158,498 Foreign Exchange Impact (698) (1,335) (5,168) (7,201) Post-Acquisition Adjustments — — 2,197 2,197 Balance December 31, 2021 $ 2,708,431 $ 3,239,448 $ 1,402,615 $ 7,350,494 |
Schedule of Acquired Intangible Assets | The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at December 31, 2021 and October 1, 2021 (in thousands): Customer Relationships, Contracts and Backlog Developed Technology Trade Names Total Balances October 1, 2021 $ 1,309,061 $ 40,020 $ 216,677 $ 1,565,758 Amortization (42,965) (1,119) (2,823) (46,907) Acquired 88,002 15,539 — 103,541 Foreign currency translation (2,734) (20) (725) (3,479) Balances December 31, 2021 $ 1,351,364 $ 54,420 $ 213,129 $ 1,618,913 |
Schedule of Estimated Amortization Expense of Intangible Assets | The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 2022 and for the succeeding years. The amounts below include preliminary amortization estimates for the BlackLynx and PA Consulting opening balance sheet fair values that are still preliminary and are subject to change. Fiscal Year (in millions) 2022 $ 144.1 2023 191.8 2024 191.6 2025 191.2 2026 176.4 Thereafter 723.8 Total $ 1,618.9 |
Receivables and Contract Asse_2
Receivables and Contract Assets (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Receivables | The following table presents the components of receivables appearing in the accompanying Consolidated Balance Sheets at December 31, 2021 and October 1, 2021, as well as certain other related information (in thousands): December 31, 2021 October 1, 2021 Components of receivables and contract assets: Amounts billed, net $ 1,311,468 $ 1,278,087 Unbilled receivables and other 1,215,690 1,343,588 Contract assets 465,656 479,743 Total receivables and contract assets, net $ 2,992,814 $ 3,101,418 Other information about receivables: Amounts due from the United States federal government, included above, net of contract liabilities $ 629,365 $ 563,009 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents the Company's roll forward of accumulated other comprehensive income (loss) after-tax as of December 31, 2021 (in thousands): Change in Pension Liabilities Foreign Currency Translation Adjustment Gain/(Loss) on Cash Flow Hedges Total Balance at October 1, 2021 $ (394,561) $ (407,240) $ 7,359 $ (794,442) Other comprehensive income (loss) 6,571 (5,695) 3,973 4,849 Reclassifications from accumulated other comprehensive income (loss) — — 1,937 1,937 Balance at December 31, 2021 $ (387,990) $ (412,935) $ 13,269 $ (787,656) |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | At December 31, 2021 and October 1, 2021, long-term debt consisted of the following (principal amounts in thousands): Interest Rate Maturity December 31, 2021 October 1, 2021 Revolving Credit Facility Benchmark + applicable margin (1) (2) March 2024 $ 577,794 $ 327,794 2021 Term Loan Facility Benchmark + applicable margin (1) (3) March 2024 1,078,800 1,081,724 2020 Term Loan Facility Benchmark + applicable margin (1) (4) March 2025 (5) 974,550 988,940 Fixed-rate notes due: Senior Notes, Series A 4.27% May 2025 190,000 190,000 Senior Notes, Series B 4.42% May 2028 180,000 180,000 Senior Notes, Series C 4.52% May 2030 130,000 130,000 Less: Current Portion (5) (53,400) (53,456) Less: Deferred Financing Fees (4,677) (5,069) Total Long-term debt, net $ 3,073,067 $ 2,839,933 (1) During the three months ended December 31, 2021, 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%. The applicable LIBOR rates including applicable margins at December 31, 2021 and October 1, 2021 were approximately 1.46% and 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 December 31, 2021. (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%. The applicable LIBOR rate including applicable margins for borrowings denominated in U.S. dollars at December 31, 2021 and October 1, 2021 was approximately 1.48% 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 1.60% at December 31, 2021. (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%. The applicable LIBOR rates including applicable margins for borrowings denominated in U.S. dollars at December 31, 2021 and October 1, 2021 were approximately 1.48% and 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 1.55% at December 31, 2021. (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. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense (reflected in selling, general and administrative expenses) for th e three months ended December 31, 2021 and January 1, 2021 were as follows (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Lease expense Operating lease expense $ 40,538 $ 39,444 Variable lease expense 7,084 8,183 Sublease income (3,668) (3,396) Total lease expense $ 43,954 $ 44,231 Supplemental information related to the Company's leases for the three months ended December 31, 2021 was as follows (in thousands): Three Months Ended December 31, 2021 Cash paid for amounts included in the measurements of lease liabilities $ 65,430 Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,262 Weighted average remaining lease term - operating leases 7 years Weighted average discount rate - operating leases 2.7% |
Schedule of Operating Lease Maturity | 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 Year Operating Leases 2022 $ 141,807 2023 159,136 2024 146,064 2025 122,723 2026 105,223 Thereafter 278,300 953,253 Less Interest (84,016) $ 869,237 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plans' Net Benefit Obligation | The following table presents the components of net periodic pension benefit recognized in earnings during the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Component: Service cost $ 1,709 $ 1,735 Interest cost 13,784 11,785 Expected return on plan assets (23,263) (25,427) Amortization of previously unrecognized items 3,092 4,032 Total net periodic pension benefit recognized $ (4,678) $ (7,875) |
Certain Information Regarding Cash Contributions | The following table presents certain information regarding the Company’s cash contributions to our pension plans for fiscal 2022 (in thousands): Cash contributions made during the first three months of fiscal 2022 $ 9,488 Cash contributions projected for the remainder of fiscal 2022 26,703 Total $ 36,191 |
PA Consulting Business Combin_2
PA Consulting Business Combination (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Business Acquisition [Line Items] | |
Summary of Unaudited Proforma Operating Results | 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 Three Months Ended January 1, 2021 Revenues $ 3,632.7 Net earnings (loss) of the Group $ 282.1 Net earnings attributable to Jacobs $ 264.6 Net earnings attributable to Jacobs per share: Basic earnings per share $ 2.04 Diluted earnings per share $ 2.02 |
PA Consulting Group Limited | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following summarizes the fair values of PA Consulting's assets acquired and liabilities assumed as of the acquisition date (in millions): Assets Cash and cash equivalents $ 134.9 Receivables 164.9 Property, equipment and improvements, net 40.5 Goodwill 1,450.5 Identifiable intangible assets 1,004.2 Prepaid expenses and other current assets 9.5 Miscellaneous long term assets 83.7 Total Assets $ 2,888.2 Liabilities Accounts payable $ 6.5 Accrued liabilities and other current liabilities 349.2 Other long term liabilities 248.2 Total Liabilities $ 603.9 Redeemable Noncontrolling interests 582.4 Net assets acquired $ 1,701.9 |
Redeemable Noncontrolling Interest | Changes in the redeemable noncontrolling interest d uring the three months ended December 31, 2021 are as follows (in thousands): Balance at October 1, 2021 $ 657,722 Accrued Preferred Dividend to Preference Shareholders 16,687 Attribution of Preferred Dividend to Common Shareholders (16,687) Net income attributable to redeemable noncontrolling interest to Common Shareholders 9,683 Redeemable Noncontrolling interests redemption value adjustment 15,203 Repurchase of redeemable noncontrolling interests (42,856) Cumulative translation adjustment and other (2,088) Balance at December 31, 2021 $ 637,664 |
Other Business Combinations (Ta
Other Business Combinations (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Buffalo Group | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following summarizes the fair values of Buffalo Group's assets acquired and liabilities assumed as of the acquisition date (in millions): Assets Cash and cash equivalents $ 8.4 Receivables 19.2 Property, equipment and improvements, net 2.3 Goodwill 130.7 Identifiable intangible assets 74.0 Prepaid expenses and other current assets 6.2 Total Assets $ 240.8 Liabilities Accounts payable, accrued expenses and other current liabilities $ 46.9 Other long term liabilities 3.8 Total Liabilities 50.7 Net assets acquired $ 190.1 |
BlackLynx | |
Business Acquisition [Line Items] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | 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 Receivables 7.7 Property, equipment and improvements, net 0.8 Goodwill 158.5 Identifiable intangible assets 103.5 Prepaid expenses and other current assets 3.2 Total Assets $ 278.8 Liabilities Accounts payable, accrued expenses and other current liabilities $ 19.5 Other long term liabilities 23.1 Total Liabilities 42.6 Net assets acquired $ 236.2 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Other Charges Impacts on Reportable Segment Income by Line of Business | The following table summarizes the impacts of the Restructuring and other charges by line of business ("LOB") in connection with the CH2M, John Wood Group's nuclear business, Buffalo Group and BlackLynx acquisitions and the PA Consulting investment, the ECR sale and the Company's first quarter fiscal 2022 transformation initiatives relating to real estate and other staffing programs and impairment of the AWE Management Ltd. investment for the three months ended December 31, 2021 and the CH2M, KeyW John Wood Group's nuclear business and Buffalo Group acquisitions, the ECR sale and the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate and other staffing programs and impairment of AWE Management Ltd. investment for the three months ended January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Critical Mission Solutions $ 1,153 $ 3,209 People & Places Solutions 61,169 5,167 PA Consulting 199 — Corporate 6,838 40,017 Total (1) $ 69,359 $ 48,393 (1) For the three months ended December 31, 2021 and January 1, 2021, amounts include $77.9 million and $20.5 million, respectively, in items impacting operating profit, along with items recorded in other income (expense), net, which includes $1.7 million in income associated with final distributions from the exit of our AWE investment and a $(27.9) million charge, respectively, related to the impairment charges on our AWE Management Ltd. investment and a gain of $6.9 million related to a lease termination which is reflected in other income (expense) for the three months ended January 1, 2021. See Note 20 - Segment Information. |
Schedule of Restructuring and Other Activities | The activity in the Company’s accruals for restructuring and other charges for the three months ended December 31, 2021 is as follows (in thousands): Balance at October 1, 2021 $ 14,031 Net (Credits) Charges (1) (1,594) Payments and other (1,672) Balance at December 31, 2021 $ 10,765 (1) Excludes $70,953 in other net charges associated mainly with real estate related impairments and other transformation activities described above. |
Summary of Restructuring and Other Activities by Major Type of Costs | The following table summarizes the Restructuring and other charges by major type of costs for the three months ended December 31, 2021 and January 1, 2021 (in thousands): Three Months Ended December 31, 2021 January 1, 2021 Lease Abandonments and Impairments $ 65,542 $ 148 Voluntary and Involuntary Terminations 563 9,503 Outside Services 4,676 7,399 Other (1) (1,422) 31,343 Total $ 69,359 $ 48,393 (1) Includes $(27.9) million related to the impairment charges on our AWE Management Ltd. investment for the three months ended January 1, 2021. |
Summary of Cumulative Amounts Incurred for Restructuring and Other Activities Costs | Cumulative amounts incurred to date under our various restructuring and other activities described above by each major type of cost as of December 31, 2021 are as follows (in thousands): Lease Abandonments and Impairments $ 383,341 Voluntary and Involuntary Terminations 145,305 Outside Services 298,670 Other 143,557 Total $ 970,873 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Total Revenues, Segment Operating Profit and Total Asset for Reporting Segment | 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) and transaction and integration costs (in thousands). For the Three Months Ended December 31, 2021 January 1, 2021 Revenues from External Customers: Critical Mission Solutions $ 1,162,505 $ 1,295,287 People & Places Solutions 1,928,146 2,086,549 PA Consulting 289,974 — Total $ 3,380,625 $ 3,381,836 For the Three Months Ended December 31, 2021 January 1, 2021 Segment Operating Profit: Critical Mission Solutions $ 111,496 $ 110,072 People & Places Solutions 191,692 196,300 PA Consulting 63,071 — Total Segment Operating Profit 366,259 306,372 Other Corporate Expenses (1) (105,360) (70,341) Restructuring, Transaction and Other Charges (2) (83,566) (22,091) Total U.S. GAAP Operating Profit 177,333 213,940 Total Other (Expense) Income, net (3) (8,243) 140,171 Earnings from Continuing Operations Before Taxes $ 169,090 $ 354,111 (1) Other corporate expenses also include intangibles amortization of $46.9 million and $23.2 million for the three months ended December 31, 2021 and January 1, 2021, respectively, with this increase mainly attributable to the PA Consulting investment. (2) Included in the three months ended December 31, 2021 is $72.3 million of real estate impairment charges related to the Company's transformation initiatives. (3) The three months ended December 31, 2021 include $1.7 million in income associated with final distributions from the exit of our AWE investment and a gain of $6.9 million related to a lease termination. The three months ended January 1, 2021 include $93.1 million 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, $82.6 million in fair value adjustments related to our investment in C3 stock and $(27.9) million related to impairment charges on our AWE Management Ltd. investment. The investments in Worley and C3 were sold in fiscal 2021 and therefore there are no comparable amounts in the current quarter. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) shares in Millions | Nov. 19, 2021 | Mar. 02, 2021 | Nov. 24, 2020 | Apr. 26, 2019 | Oct. 01, 2021 |
Worley Stock | |||||
Business Acquisition [Line Items] | |||||
Ordinary shares included in purchase price (in shares) | 58.2 | ||||
Worley | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 3,400,000,000 | ||||
Consideration paid in cash | $ 2,800,000,000 | ||||
Discontinued Operations | Worley | |||||
Business Acquisition [Line Items] | |||||
Assets held for sale | $ 0 | ||||
PA Consulting Employees | |||||
Business Acquisition [Line Items] | |||||
Ownership interest of employees | 35.00% | ||||
BlackLynx | |||||
Business Acquisition [Line Items] | |||||
Net assets acquired | $ 236,200,000 | ||||
Consideration paid in cash | 234,900,000 | ||||
Contingent consideration | 1,300,000 | ||||
Debt assumed | $ 5,300,000 | ||||
PA Consulting Group Limited | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 1,700,000,000 | ||||
Net assets acquired | $ 1,701,900,000 | ||||
Percentage of outstanding shares of common and preferred stock acquired | 65.00% | ||||
Consideration received from acquiree | $ 261,000,000 | ||||
Redeemable Noncontrolling interests | $ 582,400,000 | ||||
Buffalo Group | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 190,100,000 | ||||
Net assets acquired | 190,100,000 | ||||
Consideration paid in cash | 182,400,000 | ||||
Contingent consideration | 7,700,000 | ||||
Debt assumed | $ 7,700,000 |
Revenue Accounting for Contra_3
Revenue Accounting for Contracts - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,380,625 | $ 3,381,836 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,148,554 | 2,457,041 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 866,351 | 639,315 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 65,039 | 55,627 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 32,087 | 27,405 |
India | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,148 | 14,548 |
Australia and New Zealand | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 177,652 | 137,408 |
Middle East and Africa | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 68,794 | $ 50,492 |
Revenue Accounting for Contra_4
Revenue Accounting for Contracts - Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized included in contract liability | $ 291.5 | $ 259 |
Revenue Accounting for Contra_5
Revenue Accounting for Contracts - Remainng Performance Obligation (Details) $ in Billions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amounts | $ 13.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 57.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 43.00% |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Earnings Per Share and Certai_3
Earnings Per Share and Certain Related Information - Schedule of EPS to Denominator (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Numerator for Basic and Diluted EPS: | ||
Net earnings from continuing operations allocated to common stock for EPS calculation | $ 134,266 | $ 257,062 |
Net earnings from discontinued operations allocated to common stock for EPS calculation | (232) | (14) |
Net earnings allocated to common stock for EPS calculation | $ 134,034 | $ 257,048 |
Denominator for Basic and Diluted EPS: | ||
Shares used for calculating basic EPS attributable to common stock (in shares) | 129,342 | 129,968 |
Effect of dilutive securities: | ||
Stock compensation plans (in shares) | 952 | 1,182 |
Shares used for calculating diluted EPS attributable to common stock (in shares) | 130,294 | 131,150 |
Basic Earnings Per Share | ||
Basic Net Earnings from Continuing Operations Per Share (in dollars per share) | $ 1.04 | $ 1.98 |
Basic Net Earnings from Discontinued Operations Per Share (in dollars per share) | 0 | 0 |
Basic Earnings Per Share (in dollars per share) | 1.04 | 1.98 |
Diluted Earnings Per Share | ||
Diluted Net Earnings from Continuing Operations Per Share (in dollars per share) | 1.03 | 1.96 |
Diluted Net Earnings from Discontinued Operations Per Share (in dollars per share) | 0 | 0 |
Diluted Earnings Per Share (in dollars per share) | $ 1.03 | $ 1.96 |
Earnings Per Share and Certai_4
Earnings Per Share and Certain Related Information - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 26, 2022 | Sep. 23, 2021 | Jul. 14, 2021 | Apr. 22, 2021 | Jan. 27, 2021 | Sep. 17, 2020 | Dec. 31, 2021 | Oct. 01, 2021 | Jan. 16, 2020 |
Class of Stock [Line Items] | |||||||||
Dividend declared (in dollars per share) | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.19 | ||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend declared (in dollars per share) | $ 0.23 | ||||||||
2020 Stock Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Amount authorized to be repurchased | $ 1,000 | $ 1,000 | |||||||
Remaining authorized repurchase amount | $ 782.9 | ||||||||
Shares Repurchased (in shares) | 342,054 | ||||||||
Accelerated Share Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Amount authorized to be repurchased | $ 250 |
Earnings Per Share and Certai_5
Earnings Per Share and Certain Related Information - Share Repurchases (Details) - 2020 Stock Repurchase Program - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Jan. 16, 2020 | |
Class of Stock [Line Items] | ||
Amount authorized to be repurchased | $ 1,000 | $ 1,000 |
Average Price Per Share (in dollars per share) | $ 137.55 | |
Shares Repurchased (in shares) | 342,054 | |
Total Shares Retired (in shares) | 342,054 |
Earnings Per Share and Certai_6
Earnings Per Share and Certain Related Information - Dividends (Details) - $ / shares | Oct. 29, 2021 | Sep. 23, 2021 | Aug. 27, 2021 | Jul. 14, 2021 | Jun. 25, 2021 | Apr. 22, 2021 | Mar. 26, 2021 | Jan. 27, 2021 | Oct. 30, 2020 | Sep. 17, 2020 |
Earnings Per Share Reconciliation [Abstract] | ||||||||||
Dividend declared (in dollars per share) | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.19 | |||||
Dividends paid (in dollars per share) | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.19 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Carrying Value of Goodwill by Reportable Segment Appearing in Accompanying Consolidated Balance Sheets (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 7,197,000 |
Acquired | 158,498 |
Foreign Exchange Impact | (7,201) |
Post-Acquisition Adjustments | 2,197 |
Balance at the end of the period | 7,350,494 |
Critical Mission Solutions | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 2,550,631 |
Acquired | 158,498 |
Foreign Exchange Impact | (698) |
Post-Acquisition Adjustments | 0 |
Balance at the end of the period | 2,708,431 |
People & Places Solutions | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 3,240,783 |
Acquired | 0 |
Foreign Exchange Impact | (1,335) |
Post-Acquisition Adjustments | 0 |
Balance at the end of the period | 3,239,448 |
PA Consulting | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 1,405,586 |
Acquired | 0 |
Foreign Exchange Impact | (5,168) |
Post-Acquisition Adjustments | 2,197 |
Balance at the end of the period | $ 1,402,615 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Acquired Intangibles in Accompanying Consolidated Balance Sheets (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 1,565,758 |
Amortization | (46,907) |
Acquired | 103,541 |
Foreign currency translation | (3,479) |
Ending balance | 1,618,913 |
Customer Relationships, Contracts and Backlog | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 1,309,061 |
Amortization | (42,965) |
Acquired | 88,002 |
Foreign currency translation | (2,734) |
Ending balance | 1,351,364 |
Developed Technology | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 40,020 |
Amortization | (1,119) |
Acquired | 15,539 |
Foreign currency translation | (20) |
Ending balance | 54,420 |
Trade Names | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 216,677 |
Amortization | (2,823) |
Acquired | 0 |
Foreign currency translation | (725) |
Ending balance | $ 213,129 |
Goodwill and Intangibles - Sc_3
Goodwill and Intangibles - Schedule of Estimated Amortization Expense of Intangible Assets (Details) $ in Millions | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2022 | $ 144.1 |
2023 | 191.8 |
2024 | 191.6 |
2025 | 191.2 |
2026 | 176.4 |
Thereafter | 723.8 |
Total | $ 1,618.9 |
Receivables and Contract Asse_3
Receivables and Contract Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Oct. 01, 2021 |
Components of receivables and contract assets: | ||
Amounts billed, net | $ 1,311,468 | $ 1,278,087 |
Unbilled receivables and other | 1,215,690 | 1,343,588 |
Contract assets | 465,656 | 479,743 |
Total receivables and contract assets, net | 2,992,814 | 3,101,418 |
Other information about receivables: | ||
Amounts due from the United States federal government, included above, net of contract liabilities | $ 629,365 | $ 563,009 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 5,974,837 | $ 5,855,667 |
Other comprehensive income (loss) | 6,786 | 55,518 |
Ending balance | 6,099,945 | 6,143,367 |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (794,442) | (933,057) |
Other comprehensive income (loss) | 4,849 | |
Reclassifications from accumulated other comprehensive income (loss) | 1,937 | |
Ending balance | (787,656) | $ (877,539) |
Change in Pension Liabilities | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (394,561) | |
Other comprehensive income (loss) | 6,571 | |
Reclassifications from accumulated other comprehensive income (loss) | 0 | |
Ending balance | (387,990) | |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (407,240) | |
Other comprehensive income (loss) | (5,695) | |
Reclassifications from accumulated other comprehensive income (loss) | 0 | |
Ending balance | (412,935) | |
Gain/(Loss) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 7,359 | |
Other comprehensive income (loss) | 3,973 | |
Reclassifications from accumulated other comprehensive income (loss) | 1,937 | |
Ending balance | $ 13,269 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Income Tax Examination [Line Items] | ||
Effective income tax rate | 9.40% | 24.60% |
Excess tax benefit attributable to stock compensation | $ 4.2 | |
Foreign Tax Authority | ||
Income Tax Examination [Line Items] | ||
Change in enacted tax rate | 15.7 | |
State and Local Jurisdiction | ||
Income Tax Examination [Line Items] | ||
Benefit from amended state returns | $ 4 |
Joint Ventures and VIE's and _2
Joint Ventures and VIE's and Other Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2021 | Jan. 01, 2021 | Oct. 01, 2021 | Mar. 02, 2021 | |
Variable Interest Entity [Line Items] | ||||
Consolidated assets | $ 14,804,094 | $ 14,632,609 | ||
Amount by which equity method investments exceeded share of venture net assets | 36,600 | |||
Income from equity method investments | (12,749) | $ (1,159) | ||
Impairment of long-lived assets and equity method investment | 72,266 | 27,902 | ||
PA Consulting Employees | ||||
Variable Interest Entity [Line Items] | ||||
Ownership interest of employees | 35.00% | |||
PA Consulting Group Limited | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of outstanding shares of common and preferred stock acquired | 65.00% | |||
AWE Management Ltd | ||||
Variable Interest Entity [Line Items] | ||||
Percentage of ownership interest in joint venture | 24.50% | |||
Impairment of long-lived assets and equity method investment | 27,900 | |||
C3 | ||||
Variable Interest Entity [Line Items] | ||||
Gain on sale of stock | 82,600 | |||
Consolidated Joint Venture | Variable Interest Entity, Primary Beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Consolidated assets | 266,800 | $ 289,800 | ||
Consolidated liabilities | 208,700 | 220,800 | ||
Unconsolidated Joint Venture | VIE, not primary beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Consolidated assets | 114,200 | 115,100 | ||
Consolidated liabilities | 127,500 | 129,500 | ||
Equity method investments | 106,700 | 121,300 | ||
Income from equity method investments | 6,800 | $ 18,300 | ||
Accounts receivable from unconsolidated joint ventures accounted for under the equity method | $ 16,100 | $ 19,700 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) £ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2021GBP (£) | Oct. 01, 2021USD ($) | |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 3,073,067 | $ 2,839,933 | |
Less: Current Portion (5) | (53,400) | (53,456) | |
Less: Deferred Financing Fees | (4,677) | (5,069) | |
2021 Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,078,800 | $ 1,081,724 | |
2021 Term Loan Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.48% | 1.48% | 1.43% |
2021 Term Loan Facility | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.60% | 1.60% | |
2021 Term Loan Facility | Minimum | Eurodollar | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.875% | 0.875% | |
2021 Term Loan Facility | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.00% | 0.00% | |
2021 Term Loan Facility | Minimum | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.875% | 0.875% | |
2021 Term Loan Facility | Maximum | Eurodollar | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.625% | 1.625% | |
2021 Term Loan Facility | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.625% | 0.625% | |
2021 Term Loan Facility | Maximum | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.625% | 1.625% | |
2020 Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 974,550 | $ 988,940 | |
Quarterly principal payment, percent of aggregate borrowings | 1.25% | ||
Quarterly principal payment | $ 9,125 | £ 3,125 | |
2020 Term Loan Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.48% | 1.48% | 1.45% |
2020 Term Loan Facility | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.55% | 1.55% | |
2020 Term Loan Facility | Minimum | Eurodollar | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.875% | 0.875% | |
2020 Term Loan Facility | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.00% | 0.00% | |
2020 Term Loan Facility | Minimum | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.875% | 0.875% | |
2020 Term Loan Facility | Maximum | Eurodollar | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.50% | 1.50% | |
2020 Term Loan Facility | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.50% | 0.50% | |
2020 Term Loan Facility | Maximum | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.625% | 1.625% | |
Senior Notes, Series A | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 190,000 | $ 190,000 | |
Interest Rate | 4.27% | ||
Senior Notes, Series B | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 180,000 | 180,000 | |
Interest Rate | 4.42% | ||
Senior Notes, Series C | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 130,000 | 130,000 | |
Interest Rate | 4.52% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 577,794 | $ 327,794 | |
Revolving Credit Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.46% | 1.46% | 1.45% |
Revolving Credit Facility | Minimum | Eurodollar | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.875% | 0.875% | |
Revolving Credit Facility | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.00% | 0.00% | |
Revolving Credit Facility | Minimum | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.875% | 0.875% | |
Revolving Credit Facility | Maximum | Eurodollar | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.625% | 1.625% | |
Revolving Credit Facility | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.625% | 0.625% | |
Revolving Credit Facility | Maximum | SONIA Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.625% | 1.625% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Thousands, £ in Millions | Jan. 20, 2021USD ($) | Jan. 20, 2021GBP (£) | Mar. 27, 2019USD ($)tranche | Dec. 31, 2021USD ($) | Jan. 01, 2021USD ($) | Oct. 01, 2021USD ($) | Mar. 25, 2020USD ($) | Mar. 25, 2020GBP (£) | Mar. 12, 2018USD ($) | Feb. 07, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 3,073,067 | $ 2,839,933 | ||||||||
Proceeds from long-term borrowings | 637,000 | $ 603,500 | ||||||||
Short-term debt | 53,400 | 53,456 | ||||||||
Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility fee (as a percent) | 0.08% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Facility fee (as a percent) | 0.23% | |||||||||
Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest on Senior Notes, possible increase (basis points) | 0.75% | |||||||||
Senior Notes | Level 2 | Fair value | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt, fair value | 547,500 | |||||||||
2021 Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 1,078,800 | $ 1,081,724 | ||||||||
Proceeds from long-term borrowings | $ 200,000 | £ 650 | ||||||||
2021 Term Loan Facility | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.48% | 1.43% | ||||||||
2021 Term Loan Facility | Eurodollar | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.875% | |||||||||
2021 Term Loan Facility | Eurodollar | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.625% | |||||||||
2020 Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 974,550 | $ 988,940 | ||||||||
Aggregate principal amount | $ 730,000 | |||||||||
2020 Term Loan Facility | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.48% | 1.45% | ||||||||
2020 Term Loan Facility | Eurodollar | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.875% | |||||||||
2020 Term Loan Facility | Eurodollar | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||
2020 Term Loan Facility | U.K. subsidiary | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | £ | £ 250 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Available borrowing capacity | $ 1,670,000 | |||||||||
Note Purchase Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 500,000 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 577,794 | $ 327,794 | ||||||||
Number of tranches | tranche | 2 | |||||||||
Revolving Credit Facility | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.46% | 1.45% | ||||||||
Revolving Credit Facility | Eurodollar | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.875% | |||||||||
Revolving Credit Facility | Eurodollar | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.625% | |||||||||
Revolving Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | $ 2,250,000 | $ 1,600,000 | ||||||||
Credit facility, potential borrowing capacity | 3,250,000 | |||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | 400,000 | |||||||||
Letter of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 1,700 | |||||||||
Letter of Credit | Committed and Uncommitted Letter-of-Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 272,000 | |||||||||
Sub Facility Of Swing Line Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, maximum borrowing capacity | $ 50,000 | |||||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Short-term debt | $ 273,700 | $ 263,800 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Right-of-Use Lease Asset | |
Lessee, Lease, Description [Line Items] | |
Impairment of equity method investment and other long term assets | $ 54.9 |
Other Long-Lived Assets | |
Lessee, Lease, Description [Line Items] | |
Impairment of equity method investment and other long term assets | $ 17.4 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 13 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Leases [Abstract] | ||
Operating lease expense | $ 40,538 | $ 39,444 |
Variable lease expense | 7,084 | 8,183 |
Sublease income | (3,668) | (3,396) |
Total lease expense | $ 43,954 | $ 44,231 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurements of lease liabilities | $ 65,430 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,262 |
Weighted average remaining lease term - operating leases | 7 years |
Weighted average discount rate - operating leases | 2.70% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturity (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 141,807 |
2023 | 159,136 |
2024 | 146,064 |
2025 | 122,723 |
2026 | 105,223 |
Thereafter | 278,300 |
Remaining lease payments under operating leases | 953,253 |
Less Interest | (84,016) |
Operating lease liabilities | $ 869,237 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Schedule of Pension Plans' Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Component: | ||
Service cost | $ 1,709 | $ 1,735 |
Interest cost | 13,784 | 11,785 |
Expected return on plan assets | (23,263) | (25,427) |
Amortization of previously unrecognized items | 3,092 | 4,032 |
Net periodic benefit cost | $ (4,678) | $ (7,875) |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Narrative (Details) | Mar. 02, 2021 |
PA Consulting Group Limited | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of outstanding shares of common and preferred stock acquired | 65.00% |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefit Plans - Defined Contribution Plans (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Retirement Benefits [Abstract] | |
Cash contributions made during the first three months of fiscal 2022 | $ 9,488 |
Cash contributions projected for the remainder of fiscal 2022 | 26,703 |
Total | $ 36,191 |
PA Consulting Business Combin_3
PA Consulting Business Combination - Narrative (Details) - USD ($) $ in Thousands | Mar. 02, 2021 | Dec. 31, 2021 | Jan. 01, 2021 |
Business Acquisition [Line Items] | |||
Repurchase of redeemable noncontrolling interests | $ (35,095) | $ 0 | |
PA Consulting Employees | |||
Business Acquisition [Line Items] | |||
Ownership interest of employees | 35.00% | ||
PA Consulting Group Limited | |||
Business Acquisition [Line Items] | |||
Percentage of outstanding shares of common and preferred stock acquired | 65.00% | ||
Consideration transferred | $ 1,700,000 | ||
Consideration received from acquiree | 261,000 | ||
Redeemable Noncontrolling interests | $ 582,400 | ||
Cash in employee benefit trust | $ 700 | ||
PA Consulting Group Limited | Customer Relationships, Contracts And Backlog And Trade names | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 12 years | ||
PA Consulting Group Limited | Customer Relationships, Contracts And Backlog And Trade names | Minimum | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 9 years | ||
PA Consulting Group Limited | Customer Relationships, Contracts And Backlog And Trade names | Maximum | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 20 years |
PA Consulting Business Combin_4
PA Consulting Business Combination - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Oct. 01, 2021 | Mar. 02, 2021 |
Assets | |||
Goodwill | $ 7,350,494 | $ 7,197,000 | |
PA Consulting Group Limited | |||
Assets | |||
Cash and cash equivalents | $ 134,900 | ||
Receivables | 164,900 | ||
Property, equipment and improvements, net | 40,500 | ||
Goodwill | 1,450,500 | ||
Identifiable intangible assets | 1,004,200 | ||
Prepaid expenses and other current assets | 9,500 | ||
Miscellaneous long term assets | 83,700 | ||
Total Assets | 2,888,200 | ||
Liabilities | |||
Accounts payable | 6,500 | ||
Accrued liabilities and other current liabilities | 349,200 | ||
Other long term liabilities | 248,200 | ||
Total Liabilities | 603,900 | ||
Redeemable Noncontrolling interests | 582,400 | ||
Net assets acquired | $ 1,701,900 |
PA Consulting Business Combin_5
PA Consulting Business Combinations - Summary of Unaudited Proforma Operating Results (Details) - PA Consulting Group Limited $ / shares in Units, $ in Millions | 3 Months Ended |
Jan. 01, 2021USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ 3,632.7 |
Net earnings (loss) of the Group | 282.1 |
Net earnings attributable to Jacobs | $ 264.6 |
Net earnings (loss) attributable to Jacobs per share: | |
Basic earnings (loss) per share (in dollars per share) | $ / shares | $ 2.04 |
Diluted earnings (loss) per share (in dollars per share) | $ / shares | $ 2.02 |
Business acquisitions pro forma income tax expense (benefit) | $ 76.7 |
PA Consulting Business Combin_6
PA Consulting Business Combination - Change in Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2021 | Jan. 01, 2021 | Oct. 01, 2021 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Attribution of Preferred Dividend to Common Shareholders | $ (14,049) | $ (6,104) | |
Noncontrolling interest, Ending balance | 29,999 | ||
PA Consulting Employees | |||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at October 1, 2021 | $ 657,722 | ||
Accrued Preferred Dividend to Preference Shareholders | 16,687 | ||
Attribution of Preferred Dividend to Common Shareholders | (16,687) | ||
Net income attributable to redeemable noncontrolling interest to Common Shareholders | 9,683 | ||
Redeemable Noncontrolling interests redemption value adjustment | 15,203 | ||
Repurchase of redeemable noncontrolling interests | (42,856) | ||
Cumulative translation adjustment and other | (2,088) | ||
Noncontrolling interest, Ending balance | $ 637,664 |
Other Business Combinations - N
Other Business Combinations - Narrative (Details) - USD ($) $ in Millions | Feb. 08, 2022 | Nov. 19, 2021 | Nov. 24, 2020 |
BlackLynx | |||
Business Acquisition [Line Items] | |||
Consideration paid in cash | $ 234.9 | ||
Contingent consideration | 1.3 | ||
Debt assumed | $ 5.3 | ||
BlackLynx | Customer relationships, contracts and backlog intangible | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 12 years | ||
BlackLynx | Developed technology intangible | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 15 years | ||
Buffalo Group | |||
Business Acquisition [Line Items] | |||
Consideration transferred | $ 190.1 | ||
Consideration paid in cash | 182.4 | ||
Contingent consideration | 7.7 | ||
Debt assumed | $ 7.7 | ||
Buffalo Group | Customer relationships, contracts and backlog intangible | |||
Business Acquisition [Line Items] | |||
Useful life of acquired intangible assets | 9 years | ||
StreetLightData, Inc. | Subsequent Event | |||
Business Acquisition [Line Items] | |||
Consideration paid in cash | $ 209 |
Other Business Combinations - S
Other Business Combinations - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Nov. 19, 2021 | Oct. 01, 2021 | Nov. 24, 2020 |
Assets | ||||
Goodwill | $ 7,350,494 | $ 7,197,000 | ||
BlackLynx | ||||
Assets | ||||
Cash and cash equivalents | $ 5,100 | |||
Receivables | 7,700 | |||
Property, equipment and improvements, net | 800 | |||
Goodwill | 158,500 | |||
Identifiable intangible assets | 103,500 | |||
Prepaid expenses and other current assets | 3,200 | |||
Total Assets | 278,800 | |||
Liabilities | ||||
Accounts payable | 19,500 | |||
Other long term liabilities | 23,100 | |||
Total Liabilities | 42,600 | |||
Net assets acquired | $ 236,200 | |||
Buffalo Group | ||||
Assets | ||||
Cash and cash equivalents | $ 8,400 | |||
Receivables | 19,200 | |||
Property, equipment and improvements, net | 2,300 | |||
Goodwill | 130,700 | |||
Identifiable intangible assets | 74,000 | |||
Prepaid expenses and other current assets | 6,200 | |||
Total Assets | 240,800 | |||
Liabilities | ||||
Accounts payable | 46,900 | |||
Other long term liabilities | 3,800 | |||
Total Liabilities | 50,700 | |||
Net assets acquired | $ 190,100 |
Sale of Energy, Chemicals and_2
Sale of Energy, Chemicals and Resources ("ECR") Business - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | Apr. 26, 2019 | Dec. 31, 2021 | Apr. 02, 2021 | Jan. 01, 2021 | Oct. 01, 2021 | Oct. 02, 2020 | Sep. 27, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain on investment in equity securities | $ 0 | $ (190,368) | |||||
Worley | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Consideration transferred | $ 3,400,000 | ||||||
Consideration paid in cash | 2,800,000 | ||||||
Worley | Discontinued Operations | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Pre-tax gain on sale | $ 1,100,000 | ||||||
Gain on sale of businesses | $ 15,600 | $ 15,600 | $ 110,200 | $ 935,100 | |||
Proceeds (payments) related to sales of businesses | $ 36,400 | ||||||
Worley Stock | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Ordinary shares included in purchase price (in shares) | 58.2 | ||||||
Gain on investment in equity securities | $ (107,700) |
Restructuring and Other Charg_3
Restructuring and Other Charges - Summary of Restructuring and Other Charges Impacts on Reportable Segment Income by Line of Business (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $ (1,594) | |
Impairment of long-lived assets and equity method investment | 72,266 | $ 27,902 |
AWE Management Ltd | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment of long-lived assets and equity method investment | 27,900 | |
Gain on termination of lease | 6,900 | |
CH2M HILL Companies, Ltd. | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 69,359 | 48,393 |
CH2M HILL Companies, Ltd. | Continuing Operations | Other Expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 77,900 | 20,500 |
CH2M HILL Companies, Ltd. | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 6,838 | 40,017 |
CH2M HILL Companies, Ltd. | Critical Mission Solutions | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 1,153 | 3,209 |
CH2M HILL Companies, Ltd. | People & Places Solutions | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | 61,169 | 5,167 |
CH2M HILL Companies, Ltd. | PA Consulting | Operating Segments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and other charges | $ 199 | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring and Other Activities (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 14,031 |
Net(Credits) Charges | (1,594) |
Payments and other | (1,672) |
Ending balance | 10,765 |
Real estate impairment and other transformation activities | $ 70,953 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Summary of Restructuring and Other Activities by Major Type of Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Impairment of equity method investment | $ 72,266 | $ 27,902 |
AWE Management Ltd | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairment of equity method investment | 27,900 | |
CH2M Hill, KeyM, John Wood Group Acquisitions and ECR Sale | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 69,359 | 48,393 |
CH2M Hill, KeyM, John Wood Group Acquisitions and ECR Sale | Lease Abandonments and Impairments | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 65,542 | 148 |
CH2M Hill, KeyM, John Wood Group Acquisitions and ECR Sale | Voluntary and Involuntary Terminations | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 563 | 9,503 |
CH2M Hill, KeyM, John Wood Group Acquisitions and ECR Sale | Outside Services | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 4,676 | 7,399 |
CH2M Hill, KeyM, John Wood Group Acquisitions and ECR Sale | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ (1,422) | $ 31,343 |
Restructuring and Other Charg_6
Restructuring and Other Charges - Summary of Cumulative Amounts Incurred for Restructuring and Other Activities Costs (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | $ 970,873 |
Lease Abandonments and Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | 383,341 |
Voluntary and Involuntary Terminations | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | 145,305 |
Outside Services | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | 298,670 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | $ 143,557 |
Commitments and Contingencies_2
Commitments and Contingencies and Derivative Financial Instruments (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Aug. 31, 2017USD ($) | Dec. 31, 2021USD ($) | Oct. 01, 2021USD ($) | Dec. 31, 2012MW | Dec. 22, 2008case | |
Loss Contingencies [Line Items] | |||||
Aggregate principal balance of short-term debt | $ 53,400 | $ 53,456 | |||
Interest Rate Swap and Cross Currency Interest Rate Contract | |||||
Loss Contingencies [Line Items] | |||||
Fair value of derivative assets | 11,200 | (800) | |||
Unrealized gain (loss) on derivatives | 13,300 | 7,400 | |||
Interest Rate Swap and Cross Currency Interest Rate Contract | Miscellaneous Other Assets | |||||
Loss Contingencies [Line Items] | |||||
Fair value of derivative assets | 18,600 | 10,200 | |||
Interest Rate Swap and Cross Currency Interest Rate Contract | Other Deferred Liabilities | |||||
Loss Contingencies [Line Items] | |||||
Fair value of derivative assets | (7,400) | (11,000) | |||
Interest Rate Swap | |||||
Loss Contingencies [Line Items] | |||||
Derivative notional amount | $ 795,700 | ||||
Interest Rate Swap | SONIA Rate | |||||
Loss Contingencies [Line Items] | |||||
Derivative fixed interest rate | 0.82% | ||||
Cross Currency Interest Rate Contract | |||||
Loss Contingencies [Line Items] | |||||
Derivative notional amount | $ 127,800 | ||||
Cross Currency Interest Rate Contract | LIBOR | |||||
Loss Contingencies [Line Items] | |||||
Spread on variable rate | 0.875% | ||||
Foreign Exchange Forward | |||||
Loss Contingencies [Line Items] | |||||
Derivative notional amount | $ 503,500 | 506,500 | |||
Fair value of derivative assets | $ 53,800 | 55,500 | |||
Minimum | Interest Rate Swap | LIBOR | |||||
Loss Contingencies [Line Items] | |||||
Derivative fixed interest rate | 0.704% | ||||
Minimum | Cross Currency Interest Rate Contract | |||||
Loss Contingencies [Line Items] | |||||
Term of derivative contract | 3 years 6 months | ||||
Derivative fixed interest rate | 0.726% | ||||
Minimum | Foreign Exchange Forward | |||||
Loss Contingencies [Line Items] | |||||
Term of derivative contract | 1 month | ||||
Maximum | Interest Rate Swap | LIBOR | |||||
Loss Contingencies [Line Items] | |||||
Derivative fixed interest rate | 1.116% | ||||
Maximum | Cross Currency Interest Rate Contract | |||||
Loss Contingencies [Line Items] | |||||
Term of derivative contract | 10 years | ||||
Derivative fixed interest rate | 0.746% | ||||
Maximum | Foreign Exchange Forward | |||||
Loss Contingencies [Line Items] | |||||
Term of derivative contract | 12 months | ||||
General Electric and GE Electrical International Inc | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Plant capacity | MW | 360 | ||||
General Electric and GE Electrical International Inc | Pending Litigation | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 530,000 | ||||
JKC Australia LNG Pty Limited | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Damages sought | $ 1,700,000 | ||||
Kingston Power Plant of the TVA, Secondary Case No. 3:13CV-505-TAV-HBG | |||||
Loss Contingencies [Line Items] | |||||
Number of pending claims | case | 10 | ||||
LOCs | |||||
Loss Contingencies [Line Items] | |||||
Aggregate principal balance of short-term debt | $ 273,700 | 263,800 | |||
Surety Bond | |||||
Loss Contingencies [Line Items] | |||||
Aggregate principal balance of short-term debt | $ 2,300,000 | $ 2,100,000 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Dec. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Total Revenues, Segment Operating Profit and Total Asset for Reporting Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2021 | Jan. 01, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 3,380,625 | $ 3,381,836 |
Total Segment Operating Profit | 177,333 | 213,940 |
Restructuring, Transaction and Other Charges | (83,566) | (22,091) |
Total Other (Expense) Income, net | (8,243) | 140,171 |
Earnings from Continuing Operations Before Taxes | 169,090 | 354,111 |
Amortization of intangible assets | 46,907 | |
Impairment of long-lived assets and equity method investment | 72,266 | 27,902 |
Worley | ||
Segment Reporting Information [Line Items] | ||
Fair value adjustments | 93,100 | |
C3 | ||
Segment Reporting Information [Line Items] | ||
Fair value adjustments | 82,600 | |
AWE Management Ltd | ||
Segment Reporting Information [Line Items] | ||
Impairment of long-lived assets and equity method investment | 27,900 | |
Gain on termination of lease | 6,900 | |
Fair value adjustments | 1,700 | |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total Segment Operating Profit | 366,259 | 306,372 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Other Corporate Expenses | (105,360) | (70,341) |
Corporate | Other Expense | ||
Segment Reporting Information [Line Items] | ||
Amortization of intangible assets | 46,900 | 23,200 |
Critical Mission Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,162,505 | 1,295,287 |
Total Segment Operating Profit | 111,496 | 110,072 |
People & Places Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,928,146 | 2,086,549 |
Total Segment Operating Profit | 191,692 | 196,300 |
PA Consulting | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues | 289,974 | 0 |
Total Segment Operating Profit | $ 63,071 | $ 0 |