Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 29, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 29, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-7463 | |
Entity Registrant Name | JACOBS SOLUTIONS INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 88-1121891 | |
Entity Address, Address Line One | 1999 Bryan Street | |
Entity Address, Address Line Two | Suite 3500 | |
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 | 125,212,831 | |
Entity Central Index Key | 0000052988 | |
Current Fiscal Year End Date | --09-27 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 29, 2024 | Sep. 29, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 1,033,519 | $ 926,582 |
Receivables and contract assets | 3,772,484 | 3,558,806 |
Prepaid expenses and other | 189,455 | 204,965 |
Total current assets | 4,995,458 | 4,690,353 |
Property, Equipment and Improvements, net | 341,420 | 357,032 |
Other Noncurrent Assets: | ||
Goodwill | 7,404,422 | 7,343,526 |
Intangibles, net | 1,209,240 | 1,271,943 |
Deferred income tax assets | 58,383 | 53,131 |
Operating lease right-of-use assets | 392,967 | 414,384 |
Miscellaneous | 495,687 | 486,740 |
Total other noncurrent assets | 9,560,699 | 9,569,724 |
Assets | 14,897,577 | 14,617,109 |
Current Liabilities: | ||
Current maturities of long-term debt | 837,260 | 61,430 |
Accounts payable | 1,162,078 | 1,143,802 |
Accrued liabilities | 1,204,296 | 1,301,644 |
Operating lease liability | 150,272 | 152,077 |
Contract liabilities | 919,417 | 763,608 |
Total current liabilities | 4,273,323 | 3,422,561 |
Long-term debt | 2,164,843 | 2,813,471 |
Liabilities relating to defined benefit pension and retirement plans | 270,608 | 258,540 |
Deferred income tax liabilities | 150,354 | 221,158 |
Long-term operating lease liability | 501,123 | 543,230 |
Other deferred liabilities | 133,034 | 125,088 |
Commitments and Contingencies | 0 | 0 |
Redeemable Noncontrolling interests | 725,830 | 632,979 |
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 - 125,216,293 shares and 125,976,998 shares as of March 29, 2024 and September 29, 2023, respectively | 125,216 | 125,977 |
Additional paid-in capital | 2,733,758 | 2,735,325 |
Retained earnings | 4,576,383 | 4,542,872 |
Accumulated other comprehensive loss | (811,243) | (857,954) |
Total Jacobs stockholders’ equity | 6,624,114 | 6,546,220 |
Noncontrolling interests | 54,348 | 53,862 |
Total Group stockholders’ equity | 6,678,462 | 6,600,082 |
Total liabilities and equity | $ 14,897,577 | $ 14,617,109 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 29, 2024 | Sep. 29, 2023 |
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) | 125,216,293 | 125,976,998 |
Common stock, outstanding (in shares) | 125,216,293 | 125,976,998 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,269,093 | $ 4,078,332 | $ 8,428,318 | $ 7,877,001 |
Direct cost of contracts | (3,364,478) | (3,188,038) | (6,673,165) | (6,171,994) |
Gross profit | 904,615 | 890,294 | 1,755,153 | 1,705,007 |
Selling, general and administrative expenses | (623,627) | (600,431) | (1,270,101) | (1,177,339) |
Operating Profit | 280,988 | 289,863 | 485,052 | 527,668 |
Other Income (Expense): | ||||
Interest income | 9,405 | 7,630 | 17,639 | 10,637 |
Interest expense | (44,232) | (40,613) | (87,584) | (80,690) |
Miscellaneous expense, net | (4,576) | (4,567) | (7,771) | (7,820) |
Total other expense, net | (39,403) | (37,550) | (77,716) | (77,873) |
Earnings from Continuing Operations Before Taxes | 241,585 | 252,313 | 407,336 | 449,795 |
Income Tax expense from Continuing Operations | (67,283) | (19,060) | (51,005) | (69,163) |
Net Earnings of the Group from Continuing Operations | 174,302 | 233,253 | 356,331 | 380,632 |
Net Loss of the Group from Discontinued Operations | (768) | (75) | (1,342) | (783) |
Net Earnings of the Group | 173,534 | 233,178 | 354,989 | 379,849 |
Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (7,340) | (7,803) | (14,567) | (14,834) |
Net Earnings Attributable to Redeemable Noncontrolling interests | (4,082) | (8,863) | (6,700) | (12,855) |
Net Earnings Attributable to Jacobs from Continuing Operations | 162,880 | 216,587 | 335,064 | 352,943 |
Net Earnings Attributable to Jacobs | $ 162,112 | $ 216,512 | $ 333,722 | $ 352,160 |
Net Earnings Per Share: | ||||
Basic Net Earnings from Continuing Operations Per Share (in dollars per share) | $ 1.30 | $ 1.71 | $ 2.68 | $ 2.78 |
Basic Net Loss from Discontinued Operations Per Share (in dollars per share) | (0.01) | 0 | (0.01) | (0.01) |
Basic Earnings Per Share (in dollars per share) | 1.29 | 1.71 | 2.66 | 2.78 |
Diluted Net Earnings from Continuing Operations Per Share (in dollars per share) | 1.29 | 1.70 | 2.66 | 2.77 |
Diluted Net Loss from Discontinued Operations Per Share (in dollars per share) | (0.01) | 0 | (0.01) | (0.01) |
Diluted Earnings Per Share (in dollars per share) | $ 1.28 | $ 1.70 | $ 2.65 | $ 2.76 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Earnings of the Group | $ 173,534 | $ 233,178 | $ 354,989 | $ 379,849 |
Other Comprehensive Income: | ||||
Foreign currency translation adjustment | (34,872) | 21,951 | 73,177 | 187,285 |
Change in cash flow hedges | 1,925 | (19,811) | (25,741) | (29,955) |
Change in pension plan liabilities | 4,294 | 6 | (6,459) | (22,259) |
Other comprehensive (loss) income before taxes | (28,653) | 2,146 | 40,977 | 135,071 |
Income Tax (Expense) Benefit: | ||||
Foreign currency translation adjustment | 0 | 968 | 0 | (5,641) |
Cash flow hedges | (526) | 5,047 | 6,669 | 8,317 |
Change in pension plan liabilities | (473) | (351) | (935) | (659) |
Income Tax (Expense) Benefit: | (999) | 5,664 | 5,734 | 2,017 |
Net other comprehensive (loss) income | (29,652) | 7,810 | 46,711 | 137,088 |
Net Comprehensive Income of the Group | 143,882 | 240,988 | 401,700 | 516,937 |
Net Earnings Attributable to Noncontrolling Interests | (7,340) | (7,803) | (14,567) | (14,834) |
Net Earnings Attributable to Redeemable Noncontrolling interests | (4,082) | (8,863) | (6,700) | (12,855) |
Net Comprehensive Income Attributable to Jacobs | $ 132,460 | $ 224,322 | $ 380,433 | $ 489,248 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS 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 Sep. 30, 2022 | $ 6,104,392 | $ 6,060,056 | $ 127,393 | $ 2,682,009 | $ 4,225,784 | $ (975,130) | $ 44,336 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 366,994 | 352,160 | 352,160 | 14,834 | |||
Foreign currency translation adjustments, net of deferred taxes | 181,644 | 181,644 | 181,644 | ||||
Pension liability, net of deferred taxes | (22,918) | (22,918) | (22,918) | ||||
Change in cash flow hedges, net of deferred taxes | (21,638) | (21,638) | (21,638) | ||||
Dividends | (33,438) | (33,438) | (33,438) | ||||
Redeemable Noncontrolling interests redemption value adjustment | (44,494) | (44,494) | (44,494) | ||||
Repurchase and issuance of redeemable noncontrolling interests | 11,337 | 11,337 | 11,337 | ||||
Noncontrolling interests - distributions and other | (10,783) | (10,783) | |||||
Stock based compensation | 35,285 | 35,285 | 35,285 | ||||
Issuances of equity securities including shares withheld for taxes | 2,165 | 2,165 | 650 | 6,286 | (4,771) | ||
Repurchases of equity securities | (140,522) | (140,522) | (1,238) | (26,057) | (113,227) | ||
Ending balance at Mar. 31, 2023 | 6,428,024 | 6,379,637 | 126,805 | 2,697,523 | 4,393,351 | (838,042) | 48,387 |
Beginning balance at Dec. 30, 2022 | 6,233,598 | 6,184,104 | 126,669 | 2,672,421 | 4,230,866 | (845,852) | 49,494 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 224,315 | 216,512 | 216,512 | 7,803 | |||
Foreign currency translation adjustments, net of deferred taxes | 22,919 | 22,919 | 22,919 | ||||
Pension liability, net of deferred taxes | (345) | (345) | (345) | ||||
Change in cash flow hedges, net of deferred taxes | (14,764) | (14,764) | (14,764) | ||||
Dividends | (32,564) | (32,564) | (32,564) | ||||
Redeemable Noncontrolling interests redemption value adjustment | (21,177) | (21,177) | (21,177) | ||||
Noncontrolling interests - distributions and other | (8,910) | (8,910) | |||||
Stock based compensation | 15,054 | 15,054 | 15,054 | ||||
Issuances of equity securities including shares withheld for taxes | 9,898 | 9,898 | 136 | 10,048 | (286) | ||
Ending balance at Mar. 31, 2023 | 6,428,024 | 6,379,637 | 126,805 | 2,697,523 | 4,393,351 | (838,042) | 48,387 |
Beginning balance at Sep. 29, 2023 | 6,600,082 | 6,546,220 | 125,977 | 2,735,325 | 4,542,872 | (857,954) | 53,862 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 348,289 | 333,722 | 333,722 | 14,567 | |||
Foreign currency translation adjustments, net of deferred taxes | 73,177 | 73,177 | 73,177 | ||||
Pension liability, net of deferred taxes | (7,394) | (7,394) | (7,394) | ||||
Change in cash flow hedges, net of deferred taxes | (19,072) | (19,072) | (19,072) | ||||
Dividends | (37,077) | (37,077) | (37,077) | ||||
Redeemable Noncontrolling interests redemption value adjustment | (96,562) | (96,562) | (96,562) | ||||
Repurchase and issuance of redeemable noncontrolling interests | 1,898 | 1,898 | 1,898 | ||||
Noncontrolling interests - distributions and other | (14,081) | (14,081) | |||||
Stock based compensation | 35,176 | 35,176 | 35,176 | ||||
Issuances of equity securities including shares withheld for taxes | (10,512) | (10,512) | 667 | (5,722) | (5,457) | ||
Repurchases of equity securities | (195,462) | (195,462) | (1,428) | (31,021) | (163,013) | ||
Ending balance at Mar. 29, 2024 | 6,678,462 | 6,624,114 | 125,216 | 2,733,758 | 4,576,383 | (811,243) | 54,348 |
Beginning balance at Dec. 29, 2023 | 6,734,850 | 6,678,274 | 125,599 | 2,729,416 | 4,604,850 | (781,591) | 56,576 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 169,452 | 162,112 | 162,112 | 7,340 | |||
Foreign currency translation adjustments, net of deferred taxes | (34,872) | (34,872) | (34,872) | ||||
Pension liability, net of deferred taxes | 3,821 | 3,821 | 3,821 | ||||
Change in cash flow hedges, net of deferred taxes | 1,399 | 1,399 | 1,399 | ||||
Dividends | (36,715) | (36,715) | (36,715) | ||||
Redeemable Noncontrolling interests redemption value adjustment | (70,845) | (70,845) | (70,845) | ||||
Noncontrolling interests - distributions and other | (9,568) | (9,568) | |||||
Stock based compensation | 15,866 | 15,866 | 15,866 | ||||
Issuances of equity securities including shares withheld for taxes | 520 | 520 | 257 | 2,371 | (2,108) | ||
Repurchases of equity securities | (95,446) | (95,446) | (640) | (13,895) | (80,911) | ||
Ending balance at Mar. 29, 2024 | $ 6,678,462 | $ 6,624,114 | $ 125,216 | $ 2,733,758 | $ 4,576,383 | $ (811,243) | $ 54,348 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Foreign currency translation adjustment | $ 0 | $ (968) | $ 0 | $ 5,641 |
Pension and retiree medical plan liability, deferred taxes | 473 | 351 | 935 | 659 |
Derivative gains (losses), deferred tax expense (benefit) | $ 526 | $ (5,047) | $ (6,669) | $ (8,317) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities: | ||
Net earnings attributable to the Group | $ 354,989 | $ 379,849 |
Depreciation and amortization: | ||
Property, equipment and improvements | 49,723 | 55,686 |
Intangible assets | 103,763 | 100,247 |
Stock based compensation | 35,176 | 35,285 |
Equity in earnings of operating ventures, net of return on capital distributions | (6,983) | (2,931) |
Loss on disposals of assets, net | 1,210 | 828 |
Impairment of long-lived assets | 0 | 37,217 |
Deferred income taxes | (73,966) | 20,785 |
Changes in assets and liabilities, excluding the effects of businesses acquired: | ||
Receivables and contract assets, net of contract liabilities | (18,332) | 63,229 |
Prepaid expenses and other current assets | 20,911 | (9,940) |
Miscellaneous other assets | 43,481 | 43,472 |
Accounts payable | 14,764 | (15,109) |
Accrued liabilities | (166,640) | (228,857) |
Other deferred liabilities | 11,073 | (53,896) |
Other, net | 6,369 | 8,474 |
Net cash provided by operating activities | 375,538 | 434,339 |
Cash Flows from Investing Activities: | ||
Additions to property and equipment | (45,108) | (67,389) |
Disposals of property and equipment and other assets | 145 | 15 |
Capital contributions to equity investees, net of return of capital distributions | 1,660 | 8,384 |
Acquisitions of businesses, net of cash acquired | (14,000) | (17,685) |
Net cash used for investing activities | (57,303) | (76,675) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term borrowings | 1,716,577 | 2,075,495 |
Repayments of long-term borrowings | (1,621,390) | (2,129,338) |
Repayments of short-term borrowings | (9,657) | 0 |
Debt issuance costs | (1,606) | (11,388) |
Proceeds from issuances of common stock | 22,660 | 25,374 |
Common stock repurchases | (195,462) | (140,522) |
Taxes paid on vested restricted stock | (33,172) | (23,209) |
Cash dividends to shareholders | (70,137) | (62,788) |
Net dividends associated with noncontrolling interests | (14,249) | (11,283) |
Repurchase of redeemable noncontrolling interests | (24,360) | (58,353) |
Net cash used for financing activities | (230,796) | (336,012) |
Effect of Exchange Rate Changes | 17,631 | 49,761 |
Net Increase in Cash and Cash Equivalents and Restricted Cash | 105,070 | 71,413 |
Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period | 929,445 | 1,154,207 |
Cash and Cash Equivalents, including Restricted Cash, at the End of the Period | $ 1,034,515 | $ 1,225,620 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 29, 2024 | |
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 Solutions Inc. and its predecessors; • References herein to the “Company”, “we”, “us” or “our” are to Jacobs Solutions 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. On August 29, 2022, Jacobs Engineering Group Inc. ("JEGI"), the predecessor to Jacobs Solutions Inc., implemented a holding company structure, which resulted in Jacobs Solutions Inc. becoming the parent company of, and successor issuer to, JEGI (the "Holding Company Reorganization"). For purposes of this report, references to Jacobs and the "Company", "we", "us" or "our" or our management or business at any point prior to the Holding Company Implementation Date refer to JEGI, or JEGI and its consolidated subsidiaries as the predecessor to Jacobs Solutions Inc. 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 September 29, 2023 (“2023 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 as of March 29, 2024, and for the three and six months ended March 29, 2024. Our interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. On November 20, 2023, Jacobs entered into a definitive agreement to spin-off and combine our Critical Mission Solutions ("CMS") and portions of our Divergent Solutions business, including Cyber & Intelligence (the "Separated Businesses") with Amentum Parent Holdings LLC ("Amentum"), in a Reverse Morris Trust transaction intended to be tax-free to Jacobs’ shareholders for U.S. federal income tax purposes (hereinafter referred to as the “Separation Transaction”). The Separation Transaction, which is expected to close in fiscal year 2024, is subject to regulatory approvals and other customary closing conditions. On April 26, 2019, Jacobs completed the sale of its Energy, Chemicals and Resources ("ECR") business to Worley Limited ("Worley"), a company incorporated in Australia, 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 |
Use of Estimates and Assumption
Use of Estimates and Assumptions | 6 Months Ended |
Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates and Assumptions | 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 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, 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 | 6 Months Ended |
Mar. 29, 2024 | |
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 2023 Form 10-K for a more complete discussion of the various items within the consolidated financial statements measured at fair value and the methods used to determine fair value. Please also refer to Note 17- 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. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Mar. 29, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2023-09, Income Taxes , (Topic 740): Improvements to Income Tax Disclosures, provides qualitative and quantitative updates to the Company's effective income tax rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 will be effective for the Company in the first quarter of fiscal 2026. The Company has identified and is implementing changes to processes and internal controls to meet the standard’s updated reporting and disclosure requirements. ASU 2023-07, Segment Reporting, (Topic 280): Improvements to Reportable Segment Disclosures, requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. ASU 2023-07 will be effective for the Company's annual fiscal 2025 period. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. ASU 2023-06, Disclosure Improvements : Amendments - Codification Amendments in Response to the Disclosure Update and Simplification Initiative of the Securities and Exchange Commission ("SEC"). The Financial Accounting Standards Board issued the standard to introduce changes to US GAAP that originate in either SEC Regulation S-X or S-K, which are rules about the form and content of financial reports filed with the SEC. The provisions of the standard are contingent upon instances where the SEC removes the related disclosure provisions from Regulation S-X and S-K. The Company does not expect that the application of this standard will have a material impact on our consolidated financial statements and related disclosures. |
Revenue Accounting for Contract
Revenue Accounting for Contracts | 6 Months Ended |
Mar. 29, 2024 | |
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, 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 18- 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 and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Revenues: United States $ 2,878,888 $ 2,694,735 $ 5,676,979 $ 5,231,013 Europe 957,651 931,093 1,882,798 1,785,666 Canada 61,654 61,887 125,030 123,716 Asia 34,673 35,641 65,613 70,463 India 37,274 46,829 73,017 87,173 Australia and New Zealand 164,351 170,069 338,135 331,109 Middle East and Africa 134,602 138,078 266,746 247,861 Total $ 4,269,093 $ 4,078,332 $ 8,428,318 $ 7,877,001 Contract Liabilities Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. Revenue recognized for the three and six months ended March 29, 2024 that was previously included in the contract liability balance on September 29, 2023 was $105.2 million and $474.9 million, respectively. Revenue recognized for the three and six months ended March 31, 2023 that was included in the contract liability balance on September 30, 2022 was $82.7 million and $413.0 million, respectively. Remaining Performance Obligation The Company’s remaining performance obligations as of March 29, 2024 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had approximately $17.5 billion in remaining performance obligations as of March 29, 2024. The Company expects to recognize approximately 56% of its remaining performance obligations into revenue within the next twelve months and the remaining 44% thereafter. The majority of the remaining performance obligations after the first twelve months are expected to be recognized over a four year period. Although our remaining performance obligations reflect business volumes that are considered to be firm, normal business activities including scope adjustments, deferrals or cancellations may occur that impact volume or 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 | 6 Months Ended |
Mar. 29, 2024 | |
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 and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Numerator for Basic and Diluted EPS: Net earnings attributable to Jacobs from continuing operations $ 162,880 $ 216,587 $ 335,064 $ 352,943 Preferred Redeemable Noncontrolling interests redemption value adjustment (See Note 15- PA Consulting Redeemable Noncontrolling Interests ) — — 1,766 — Net earnings from continuing operations allocated to common stock for EPS calculation $ 162,880 $ 216,587 $ 336,830 $ 352,943 Net loss from discontinued operations allocated to common stock for EPS calculation $ (768) $ (75) $ (1,342) $ (783) Net earnings allocated to common stock for EPS calculation $ 162,112 $ 216,512 $ 335,488 $ 352,160 Denominator for Basic and Diluted EPS: Shares used for calculating basic EPS attributable to common stock 125,712 126,886 125,909 126,855 Effect of dilutive securities: Stock compensation plans 499 473 603 573 Shares used for calculating diluted EPS attributable to common stock 126,211 127,359 126,512 127,428 Net Earnings Per Share: Basic Net Earnings from Continuing Operations Per Share $ 1.30 $ 1.71 $ 2.68 $ 2.78 Basic Net Loss from Discontinued Operations Per Share $ (0.01) $ — $ (0.01) $ (0.01) Basic Earnings Per Share $ 1.29 $ 1.71 $ 2.66 $ 2.78 Diluted Net Earnings from Continuing Operations Per Share $ 1.29 $ 1.70 $ 2.66 $ 2.77 Diluted Net Loss from Discontinued Operations Per Share $ (0.01) $ — $ (0.01) $ (0.01) Diluted Earnings Per Share $ 1.28 $ 1.70 $ 2.65 $ 2.76 Note: Per share amounts may not add due to rounding. 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 (the "2020 Repurchase Authorization"). The 2020 Repurchase Authorization expired on January 15, 2023. On January 25, 2023, the Company's Board of Directors authorized an incremental share repurchase program of up to $1.0 billion of the Company's common stock, to expire on January 25, 2026 (the "2023 Repurchase Authorization"). At March 29, 2024, the Company has $679.4 million remaining under the 2023 Repurchase Authorization. The following table summarizes repurchase activity under the 2023 Repurchase Authorization through the second fiscal quarter of 2024: Amount Authorized Average Price Per Share (1) Total Shares Retired Shares Repurchased $1,000,000,000 $136.86 1,428,180 1,428,180 (1) Includes commissions paid and excise tax due under the Inflation Reduction Act of 2022 and calculated at the average price per share. 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 May 2, 2024 , the Company’s Board of Directors declared a quarterly dividend of $0.29 per share of the Company’s common stock to be paid on June 21, 2024 , to shareholders of record on the close of business on May 24, 2024 . Future dividend declarations are subject to review and approval by the Company’s Board of Directors. Dividends paid through the second fiscal quarter of 2024 and the preceding fiscal year are as follows: Declaration Date Record Date Payment Date Cash Amount (per share) January 25, 2024 February 23, 2024 March 22, 2024 $0.29 September 28, 2023 October 27, 2023 November 9, 2023 $0.26 July 6, 2023 July 28, 2023 August 25, 2023 $0.26 April 27, 2023 May 26, 2023 June 23, 2023 $0.26 January 25, 2023 February 24, 2023 March 24, 2023 $0.26 September 15, 2022 September 30, 2022 October 28, 2022 $0.23 |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Mar. 29, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles The carrying value of goodwill appearing in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023 was as follows (in thousands): Critical Mission Solutions People & Places Solutions Divergent Solutions PA Consulting Total Balance September 29, 2023 $ 2,244,985 $ 3,208,193 $ 595,712 $ 1,294,636 $ 7,343,526 Foreign currency translation and other 4,392 5,917 1,166 49,421 60,896 Balance March 29, 2024 $ 2,249,377 $ 3,214,110 $ 596,878 $ 1,344,057 $ 7,404,422 The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023 (in thousands): Customer Relationships, Contracts and Backlog Developed Technology Trade Names Total Balance September 29, 2023 $ 1,022,401 $ 74,791 $ 174,751 $ 1,271,943 Amortization (89,669) (7,946) (6,148) (103,763) Acquired — — 14,000 14,000 Foreign currency translation and other 20,544 203 6,313 27,060 Balance March 29, 2024 $ 953,276 $ 67,048 $ 188,916 $ 1,209,240 The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 2024 and for the succeeding years. Fiscal Year (in millions) 2024 $ 105.1 2025 209.8 2026 187.0 2027 154.6 2028 143.7 Thereafter 409.0 Total $ 1,209.2 |
Receivables and Contract Assets
Receivables and Contract Assets | 6 Months Ended |
Mar. 29, 2024 | |
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 and contract assets appearing in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023, as well as certain other related information (in thousands): March 29, 2024 September 29, 2023 Components of receivables and contract assets: Amounts billed, net $ 1,517,480 $ 1,457,333 Unbilled receivables and other 1,577,510 1,442,486 Contract assets 677,494 658,987 Total receivables and contract assets, net $ 3,772,484 $ 3,558,806 Other information about receivables: Amounts due from the United States federal government, included above, net of contract liabilities $ 799,371 $ 802,566 Amounts billed, net consist of amounts invoiced to clients in accordance with the terms of our client contracts and are shown net of an allowance for doubtful accounts. We anticipate that substantially all of such billed amounts will be collected over the next twelve months. Unbilled receivables and other, which represent an unconditional right to payment subject only to the passage of time, are reclassified to amounts billed when they are billed under the terms of the contract. We anticipate that substantially all of such unbilled amounts will be billed and collected over the next twelve months. Contract assets represent unbilled amounts where the right to payment is subject to more than merely the passage of time and includes performance-based incentives and services that have been provided in advance of agreed contractual milestones. Contract assets are transferred to unbilled receivables when the right to consideration becomes unconditional and are transferred to amounts billed upon invoicing. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Mar. 29, 2024 | |
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 March 29, 2024 (in thousands): Change in Net Pension Obligation Foreign Currency Translation Adjustment (1) Gain/(Loss) on Cash Flow Hedges (2) Total Balance at September 29, 2023 $ (325,692) $ (635,937) $ 103,675 $ (857,954) Other comprehensive (loss) income (7,394) 73,177 259 66,042 Reclassifications from accumulated other comprehensive income (loss) — — (19,331) (19,331) Balance at March 29, 2024 $ (333,086) $ (562,760) $ 84,603 $ (811,243) ( 1) Included in the overall foreign currency translation adjustment for the six months ended March 29, 2024 and March 31, 2023 are $(21.2) million and $(87.2) million, respectively, in unreali zed gains (losses) on long-term foreign currency denominated intercompany loans not anticipated to be settled in the foreseeable future. (2) Included in the Company’s cumulative net unrealized gains from interest rate and cross currency swaps recorded in accumulated other comprehensive income as of March 29, 2024 were approximately $20.2 million in unrealized gains, net of taxes, which are expected to be realized in earnings during the twelve months subsequent to March 29, 2024. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rates from continuing operations for the three months ended March 29, 2024 and March 31, 2023 were 27.9% and 7.6%, respectively. The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21% and the Company's effective tax rate for the three-month period ended March 29, 2024 were U.S. state income tax expense of $4.0 million and U.S. tax on foreign earnings of $5.5 million. These expense items are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year. For the three months ended March 31, 2023, the main differences were attributable to a tax benefit of $40.2 million related to uncertain tax positions (“UTPs”) in the U.S. that were effectively settled, of which $30.8 million relates to positions carried forward from the acquisition of CH2M Hill Companies Ltd. that was completed in 2018, as well as a tax benefit of $8.6 million for the release of previously valued foreign tax credits. These benefits were partly offset by U.S. state income tax expense of $5.9 million and U.S. tax on foreign earnings of $4.6 million. The Company's effective tax rates from continuing operations for the six months ended March 29, 2024 and March 31, 2023 were 12.6% and 15.4%, respectively. The most significant item contributing to the difference between the statutory U.S. federal corporate tax rate of 21% and the Company’s effective tax rate for the six-month period ended March 29, 2024 related to a discrete event associated with the election to treat an Australian subsidiary as a corporation versus a partnership for U.S. tax purposes, with this election resulting in the derecognition of a deferred tax liability and yielding a discrete income tax benefit of $61.6 million as the Company asserts that a component of the investment will be indefinitely reinvested. This benefit was partly offset by U.S. state income tax expense of $7.3 million and U.S. tax on foreign earnings of $8.6 million, which are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year. For the six months ended March 31, 2023, the main differences were associated with net tax benefits of $39.0 million mostly related to UTPs mentioned above and a tax benefit of $8.6 million for the release of previously valued foreign tax credits, partly offset by U.S. state income tax expense of $10.5 million and U.S. tax on foreign earnings of $8.2 million. 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 i s 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, VIEs and Other
Joint Ventures, VIEs and Other Investments | 6 Months Ended |
Mar. 29, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures, VIEs and Other Investments | Joint Ventures, VIEs and Other Investments For the Company's consolidated variable interest entities ("VIE") joint ventures, the carrying value of assets and liabilities was $391.8 million and $244.3 million, respectively, as of March 29, 2024 and $424.2 million and $279.8 million, respectively, as of September 29, 2023. There are no consolidated VIEs that have debt or credit facilities. For the Company's proportionate consolidated VIEs, the carrying value of assets and liabilities was $128.9 million and $126.0 million, respectively, as of March 29, 2024, and $132.0 million and $128.9 million, respectively, as of September 29, 2023. The carrying values of our investments in equity method joint ventures in the Consolidated Balance Sheets (reported in Other Noncurrent Assets: Miscellaneous) as of March 29, 2024 and September 29, 2023 were $54.4 million and $49.6 million, respectively. Additionally, income from equity method joint ventures (reported in Revenue) was $15.2 million and $7.5 million, respectively, during the three months ended March 29, 2024 and March 31, 2023, with $25.5 million and $17.5 million, respectively, for the corresponding six month periods. As of March 29, 2024, the Company's equity method investment carrying values do not include material amounts exceeding their share of the respective joint ventures' reported net assets. Accounts receivable from unconsolidated joint ventures accounted for under the equity method was $14.4 million and $16.1 million as of March 29, 2024 and September 29, 2023, respectively. |
Borrowings
Borrowings | 6 Months Ended |
Mar. 29, 2024 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings At March 29, 2024 and September 29, 2023, long-term debt consisted of the following (principal amounts in thousands): Interest Rate Maturity March 29, 2024 September 29, 2023 Revolving Credit Facility Benchmark + applicable margin (1) (2) February 2028 $ 135,000 $ 10,000 2021 Term Loan Facility - USD Portion Benchmark + applicable margin (1) (3) February 2026 120,000 120,000 2021 Term Loan Facility - GBP Portion Benchmark + applicable margin (1) (3) September 2025 823,095 794,170 2020 Term Loan Facility Benchmark + applicable margin (1) (4) March 2025 (6) 837,260 854,246 Fixed-rate: 5.9% Bonds, due 2033 5.9% (5) March 2033 500,000 500,000 6.35% Bonds, due 2028 6.35% August 2028 600,000 600,000 Less: Current Portion (6) (837,260) (51,773) Less: Deferred Financing Fees (13,252) (13,172) Total Long-term debt, net $ 2,164,843 $ 2,813,471 (1) During the year ended September 29, 2023, the aggregate principal amounts denominated in U.S. dollars under the Revolving Credit Facility, the 2021 Term Loan Facility and the 2020 Term Loan Facility (each as defined below) transitioned from underlying LIBOR benchmarked rates to the Term Secured Overnight Financing Rate ("SOFR"). During fiscal 2022, the aggregate principal amounts denominated in British pounds under the Revolving Credit Facility, 2021 Term Loan Facility and 2020 Term Loan Facility transitioned from underlying LIBOR benchmarked rates to Sterling Overnight Index Average ("SONIA") rates. (2) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the Revolving Credit Facility (defined below)), U.S. dollar denominated borrowings under the Revolving Credit Facility bear interest at either a SOFR rate plus a margin of between 0.975% and 1.725% or a base rate plus a margin of between 0% and 0.625%. The applicable SOFR rates, or LIBOR rate for the prior fiscal year end, including applicable margins at March 29, 2024 and September 29, 2023 were approximately 6.68% and 8.75%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908% and 1.658%. There were no amounts drawn in British pounds as of March 29, 2024. (3) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the Amended and Restated Term Loan Agreement (defined below)), U.S. dollar denominated borrowings under the 2021 Term Loan Facility bear interest at either a SOFR rate plus a margin of between 0.975% and 1.725% or a base rate plus a margin of between 0% and 0.625%. The applicable SOFR, or LIBOR rate for the prior fiscal year end, including applicable margins for borrowings denominated in U.S. dollars at March 29, 2024 and September 29, 2023 was approximately 6.67% and 6.68%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908% and 1.658%, which was approximately 6.47% and 6.47% at March 29, 2024 and September 29, 2023, respectively. (4) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the 2020 Term Loan Agreement), U.S. dollar denominated borrowings under the 2020 Term Loan Facility bear interest at either a SOFR rate plus a margin of between 0.975% and 1.725% or a base rate plus a margin of between 0% and 0.625%. The applicable SOFR, or LIBOR rate for the prior fiscal year end, including applicable margins for borrowings denominated in U.S. dollars at March 29, 2024 and September 29, 2023 were approximately 6.68% and 6.68%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908% and 1.658%, which was approximately 6.47% and 6.47% at March 29, 2024 and September 29, 2023, respectively. (5) From and including September 1, 2028 (the “First Step Up Date”), the interest rate payable on the 5.90% Bonds (as defined below) will be increased by an additional 12.5 basis points to 6.025% per annum (the “First Step Up Interest Rate”) unless the Company notifies the Trustee (as defined below) on or before the date that is 15 days prior to the First Step Up Date that the Percentage of Gender Diversity Performance Target (as defined in the First Supplemental Indenture (as defined below)) has been satisfied and receives a related assurance letter verifying such compliance. From and including September 1, 2030 (the “Second Step Up Date”), the interest rate payable on the 5.90% Bonds will be increased by 12.5 basis points to (x) 6.150% per annum if the First Step Up Interest Rate was in effect immediately prior to the Second Step Up Date or (y) 6.025% per annum if the initial interest rate was in effect immediately prior to the Second Step Up Date, unless the Company notifies the Trustee on or before the date that is 15 days prior to the Second Step Up Date that the GHG Emissions Performance Target (as defined in the First Supplemental Indenture) has been satisfied and receives a related assurance letter verifying such compliance. (6) Balance as of March 29, 2024 is associated with the March 25, 2025 scheduled maturity of the 2020 Term Loan Facility, which was reclassified from long-term debt in March 2024. Previously reported balance as of September 29, 2023 was comprised of the 2020 Term Loan quarterly principal repayments of 1.25%, or $9.1 million and £3.1 million, of the aggregate initial principal amount borrowed, totaling $51.8 million in U.S. dollars for the subsequent twelve months. Revolving Credit Facility and Term Loans The Company and certain of its subsidiaries maintain a sustainability-linked $2.25 billion unsecured revolving credit facility (the “Revolving Credit Facility”) established under a third amended and restated credit agreement, dated February 6, 2023 (the "Revolving Credit Agreement"), among Jacobs and certain of its subsidiaries as borrowers and a syndicate of U.S. and international banks and financial institutions. The credit extensions under the Revolving Credit Facility can be funded in U.S. dollars, British Sterling, Euros, Canadian dollars, Australian dollars, Swedish Krona, Singapore dollars and other agreed upon alternative currencies. The Revolving Credit Agreement also provides for a financial letter of credit sub facility of $400.0 million, permits performance letters of credit, and provides for a $100.0 million sub facility for swing line loans. Letters of credit are subject to fees based on the Company’s Consolidated Leverage Ratio and Debt Rating, whichever is more favorable to the Company. The Revolving Credit Agreement amended and restated the second amended and restated credit agreement dated March 27, 2019, by and among JEGI and certain of its subsidiaries and a syndicate of banks and financial institutions, in order to, among other things, (a) extend the maturity date of the Revolving Credit Facility to February 6, 2028, (b) replace and adjust interest rates based on market conditions and incorporate a sustainability-linked pricing adjustment, (c) revise the commitment fee on the unused portion of the facility to a range of 0.10% to 0.25% depending on the higher of the pricing level associated with JEGI's Debt Rating or the Consolidated Leverage Ratio, (d) increase the Consolidated Leverage Ratio financial covenant to 3.50:1.00 (subject to temporary increases to 4.00:1.00 following the closing of certain material acquisitions), (e) eliminate the net worth financial covenant and (f) add the Company as a guarantor of the obligations of JEGI and its subsidiaries under the Revolving Credit Agreement. The Company and JEGI maintain an unsecured delayed draft term loan facility (the “2021 Term Loan Facility”) established under an amended and restated term loan agreement dated February 6, 2023 (the "Amended and Restated Term Loan Agreement"), by and among the Company and JEGI and a syndicate of banks and financial institutions. JEGI borrowed $200.0 million and £650.0 million of term loans under the 2021 Term Loan Facility (reflecting scheduled maturities in February 2026 and September 2025, respectively) and the proceeds of such term loans were used primarily to fund JEGI's investment in PA Consulting. The Amended and Restated Term Loan Agreement amended and restated the term loan agreement dated January 15, 2021, by and among JEGI and a syndicate of U.S. banks and financial institutions to, among other things: (a) extend the maturity date of the U.S. dollar term loan to February 6, 2026 and the British sterling term loan to September 1, 2025, (b) replace and adjust interest rates based on market conditions and incorporate a sustainability-linked pricing adjustment, (c) increase the Consolidated Leverage Ratio financial covenant to 3.50:1.00 (subject to temporary increases to 4.00:1.00 following the closing of certain material acquisitions), (d) eliminate the net worth financial covenant, and (e) add Jacobs as a guarantor of the obligations of JEGI under the Amended and Restated Term Loan Agreement. During the fourth quarter of fiscal 2023, the Company repaid $80.0 million of the USD portion of the 2021 Term Loan Facility. On March 25, 2020, JEGI and Jacobs U.K., a wholly owned subsidiary of JEGI, entered into a term loan agreement (the "2020 Term Loan Agreement") with a syndicate of banks and financial institutions, which provides for an unsecured term loan facility (the “2020 Term Loan Facility”). Under the 2020 Term Loan Facility, JEGI borrowed an aggregate principal amount of $730.0 million and Jacobs U.K. 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. On February 6, 2023, the 2020 Term Loan Agreement was amended to, among other things: (a) replace and adjust interest rates based on market conditions and incorporate a sustainability-linked pricing adjustment, (b) increase the Consolidated Leverage Ratio financial covenant to 3.50:1.00 (subject to temporary increases to 4.00:1.00 following the closing of certain material acquisitions), (c) eliminate the net worth financial covenant, and (d) add Jacobs as a guarantor of the obligations of JEGI and Jacobs U.K. The 2020 Term Loan facility matures in March 2025 and the related outstanding balances under this facility have been reclassified to current maturities of long-term debt in the Company’s March 29, 2024 consolidated balance sheet in the current quarter. The 2020 Term Loan Facility and the 2021 Term Loan Facility are together referred to as the "Term Loan Facilities". In the fourth quarter of fiscal 2022, the Revolving Credit Facility and Term Loan Facilities were amended to permit the Holding Company Reorganization. On December 20, 2023, the Revolving Credit Facility and Term Loan Facilities were amended to adjust the point in time at which certain compliance thresholds are tested in connection with the Separation Transaction. We were in compliance with the covenants under the Revolving Credit Facility and Term Loan Facilities at March 29, 2024. 5.90% Bonds, due 2033 On February 16, 2023, JEGI completed an offering of $500 million aggregate principal amount of 5.90% Bonds due 2033 (the “5.90% Bonds”). The 5.90% Bonds are fully and unconditionally guaranteed by the Company (the “5.90% Bonds Guarantee”). The 5.90% Bonds and the 5.90% Bonds Guarantee were offered pursuant to a prospectus supplement, dated February 13, 2023, to the prospectus dated February 6, 2023, that forms a part of the Company's and JEGI’s automatic shelf registration statement on Form S-3ASR previously filed with the SEC, and were issued pursuant to an Indenture, dated as of February 16, 2023, between JEGI, as issuer, the Company, as guarantor, and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), as amended and supplemented by the First Supplemental Indenture, dated as of February 16, 2023 (the “First Supplemental Indenture”). Interest on the 5.90% Bonds is payable semi-annually in arrears on each March 1 and September 1, commencing on September 1, 2023, until maturity. The 5.90% Bonds bear interest at 5.90% per annum, subject to adjustments as discussed in note (5) to the table above. Prior to December 1, 2032 (the “5.90% Bonds Par Call Date”), JEGI may redeem the 5.90% Bonds at its option, in whole or in part, at any time and from time to time, at the redemption price calculated by JEGI (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest on the 5.90% Bonds being redeemed, assuming that such 5.90% Bonds matured on the 5.90% Bonds Par Call Date, discounted to the redemption date on a semiannual basis (assuming a 360-day year of twelve 30-day months), at the Treasury Rate (as defined in the First Supplemental Indenture) plus 35 basis points, less (b) interest accrued to the redemption date, and (2) 100% of the principal amount of such 5.90% Bonds to be redeemed, plus, in either case, accrued and unpaid interest on the 5.90% Bonds, if any, to, but excluding, the redemption date. At any time and from time to time on or after the 5.90% Bonds Par Call Date, JEGI may redeem the 5.90% Bonds, at its option, in whole or in part, at a redemption price equal to 100% of the principal amount of the 5.90% Bonds to be redeemed, plus accrued and unpaid interest thereon, if any, up to, but excluding, the redemption date. 6.35% Bonds, due 2028 On August 18, 2023, JEGI completed an offering of $600 million aggregate principal amount of 6.35% Bonds due 2028 (the “6.35% Bonds”). The 6.35% Bonds are fully and unconditionally guaranteed by the Company (the “6.35% Bonds Guarantee”). The 6.35% Bonds and the 6.35% Bonds Guarantee were offered pursuant to a prospectus supplement, dated August 15, 2023, to the prospectus dated February 6, 2023, that forms a part of the Company and JEGI’s automatic shelf registration statement on Form S-3ASR previously filed with the SEC, and were issued pursuant to the Indenture, as amended and supplemented by the Second Supplemental Indenture, dated as of August 18, 2023 (the “Second Supplemental Indenture”). Interest on the 6.35% Bonds is payable semi-annually in arrears on each February 18 and August 18, commencing on February 18, 2024, until maturity. The Notes will bear interest at a rate of 6.35% per annum and will mature on August 18, 2028. The 6.35% Bonds bear interest at 6.35% per annum. Prior to July 18, 2028 (the “6.35% Bonds Par Call Date”), JEGI may redeem the 6.35% Bonds at its option, in whole or in part, at any time and from time to time, at the redemption price calculated by JEGI (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1) (a) the sum of the present values of the remaining scheduled payments of principal and interest on the 6.35% Bonds being redeemed, assuming that such 6.35% Bonds matured on the 6.35% Bonds Par Call Date, discounted to the redemption date on a semiannual basis (assuming a 360-day year of twelve 30-day months), at the Treasury Rate (as defined in the Second Supplemental Indenture) plus 30 basis points, less (b) interest accrued to the redemption date, and (2) 100% of the principal amount of such 6.35% Bonds to be redeemed, plus, in either case, accrued and unpaid interest on the 6.35% Bonds, if any, to, but excluding, the redemption date. At any time and from time to time on or after the 6.35% Bonds Par Call Date, JEGI may redeem the 6.35% Bonds, at its option, in whole or in part, at a redemption price equal to 100% of the principal amount of the 6.35% Bonds to be redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date. Other arrangements During fiscal 2022, the Company entered into two treasury lock agreements with an aggregate notional value of $500.0 million to manage its expected interest rate exposure in anticipation of issuing up to $500.0 million of fixed rate debt. On February 13, 2023 and with the issuance of the 5.90% Bonds, the Company settled these treasury lock agreements. See Note 17- Commitments and Contingencies and Derivative Financial Instruments for more discussion around this transaction. 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 17- Commitments and Contingencies and Derivative Financial Instruments for discussion regarding the Company's derivative instruments. The Company has issued $0.5 million in letters of credit under the Revolving Credit Facility, leaving $2.11 billion of available borrowing capacity under the Revolving Credit Facility at March 29, 2024. In addition, the Company had issued $289.2 million under various separate, committed and uncommitted letter-of-credit facilities for issued letters of credit totaling $289.7 million at March 29, 2024. |
Leases
Leases | 6 Months Ended |
Mar. 29, 2024 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense (reflected in selling, general and administrative expenses) for th e three and six months ended March 29, 2024 and March 31, 2023 were as follows (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Lease expense Operating lease expense $ 33,992 $ 35,539 $ 68,192 $ 70,821 Variable lease expense 9,799 9,416 19,136 18,762 Sublease income (4,757) (4,414) (9,468) (8,820) Total lease expense $ 39,034 $ 40,541 $ 77,860 $ 80,763 Supplemental information related to the Company's leases for the six months ended March 29, 2024 and March 31, 2023 was as follows (in thousands): Six Months Ended March 29, 2024 March 31, 2023 Cash paid for amounts included in the measurements of lease liabilities $ 91,565 $ 92,142 Right-of-use assets obtained in exchange for new operating lease liabilities $ 23,742 $ 42,150 Weighted average remaining lease term - operating leases 5.7 years 6.1 years Weighted average discount rate - operating leases 3.4% 3.0% Total remaining lease payments under the Company's leases for the remainder of fiscal 2024 and for the succeeding years is as follows (in thousands): Fiscal Year Operating Leases 2024 $ 89,020 2025 149,091 2026 125,476 2027 102,627 2028 84,734 Thereafter 166,659 717,607 Less Interest (66,212) $ 651,395 Right-of-Use and Other Long-Lived Asset Impairment During fiscal 2023, 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 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 impairment losses during the three and six months ended March 31, 2023 of $10.1 million and $37.2 million, respectively, which are included in selling, general, and administrative expenses in the accompanying statement of earnings. The impairment losses recorded include $32.4 million related to the right-of-use lease assets and $4.8 million related to the other long-lived assets, including property, equipment, and improvements and leasehold improvements for the fiscal 2023 period. 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 | Leases The components of lease expense (reflected in selling, general and administrative expenses) for th e three and six months ended March 29, 2024 and March 31, 2023 were as follows (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Lease expense Operating lease expense $ 33,992 $ 35,539 $ 68,192 $ 70,821 Variable lease expense 9,799 9,416 19,136 18,762 Sublease income (4,757) (4,414) (9,468) (8,820) Total lease expense $ 39,034 $ 40,541 $ 77,860 $ 80,763 Supplemental information related to the Company's leases for the six months ended March 29, 2024 and March 31, 2023 was as follows (in thousands): Six Months Ended March 29, 2024 March 31, 2023 Cash paid for amounts included in the measurements of lease liabilities $ 91,565 $ 92,142 Right-of-use assets obtained in exchange for new operating lease liabilities $ 23,742 $ 42,150 Weighted average remaining lease term - operating leases 5.7 years 6.1 years Weighted average discount rate - operating leases 3.4% 3.0% Total remaining lease payments under the Company's leases for the remainder of fiscal 2024 and for the succeeding years is as follows (in thousands): Fiscal Year Operating Leases 2024 $ 89,020 2025 149,091 2026 125,476 2027 102,627 2028 84,734 Thereafter 166,659 717,607 Less Interest (66,212) $ 651,395 Right-of-Use and Other Long-Lived Asset Impairment During fiscal 2023, 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 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 impairment losses during the three and six months ended March 31, 2023 of $10.1 million and $37.2 million, respectively, which are included in selling, general, and administrative expenses in the accompanying statement of earnings. The impairment losses recorded include $32.4 million related to the right-of-use lease assets and $4.8 million related to the other long-lived assets, including property, equipment, and improvements and leasehold improvements for the fiscal 2023 period. 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 | 6 Months Ended |
Mar. 29, 2024 | |
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 expense recognized in earnings during the three and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Component: Service cost $ 2,261 $ 1,748 $ 4,522 $ 3,496 Interest cost 21,560 20,233 43,120 40,466 Expected return on plan assets (23,726) (21,091) (47,452) (42,182) Amortization of previously unrecognized items 1,949 1,304 3,898 2,608 Total net periodic pension benefit expense recognized $ 2,044 $ 2,194 $ 4,088 $ 4,388 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 2024 (in thousands): Cash contributions made during the first six months of fiscal 2024 $ 10,076 Cash contributions projected for the remainder of fiscal 2024 9,205 Total $ 19,281 |
PA Consulting Redeemable Noncon
PA Consulting Redeemable Noncontrolling Interests | 6 Months Ended |
Mar. 29, 2024 | |
PA Consulting Group Limited | |
Business Acquisition [Line Items] | |
PA Consulting Redeemable Noncontrolling Interests | PA Consulting Redeemable Noncontrolling Interests On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting, a UK-based leading innovation and transformation consulting firm. PA Consulting is accounted for as a consolidated subsidiary and as a separate operating segment. In connection with the PA Consulting investment, the Company recorded redeemable noncontrolling interests, including subsequent purchase accounting adjustments, representing the noncontrolling interest holders' equity interests 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 half of 2024 and 2023, PA Consulting repurchased certain shares of the redeemable noncontrolling interest holders for cash amounts of $24.4 million and $58.4 million, respectively. The difference between the cash purchase prices and the recorded book values of these repurchased interests was recorded in the Company’s consolidated retained earnings. The Company held 70% and 69% of the outstanding ownership of PA Consulting as of March 29, 2024 and September 29, 2023, respectively. During the first half of 2024, the Company recognized approximately $1.8 million in redemption value adjustments associated with redeemable noncontrolling interests preference share repurchase and reissuance activities that were recorded as an increase in consolidated retained earnings and a $0.01 increase in earnings per share, the results of which had no impact on the Company’s overall results of operations, financial position or cash flows. See Note 6- Earnings Per Share and Certain Related Information for more information. Changes in the redeemable noncontrolling interests d uring the six months ended March 29, 2024 are as follows (in thousands): Balance at September 29, 2023 $ 632,979 Accrued Preferred Dividend to Preference Shareholders 39,710 Attribution of Preferred Dividend to Common Shareholders (39,710) Net earnings attributable to redeemable noncontrolling interests to Common Shareholders 6,700 Redeemable Noncontrolling interests redemption value adjustment 96,562 Repurchase of redeemable noncontrolling interests (26,258) Cumulative translation adjustment and other 15,847 Balance at March 29, 2024 $ 725,830 In addition, certain employees and non-employees of PA Consulting are eligible to receive equity-based incentive grants in the future under the terms of the applicable agreements. During the first six months of fiscal 2024 and 2023, the Company recorded $6.8 million and $1.1 million, respectively, in expenses associated with these agreements which is reflected in selling, general and administrative expenses in the consolidated statements of earnings. The Company, through its investment in PA Consulting, held $1.0 million and $2.8 million at March 29, 2024 and September 29, 2023, respectively, in cash that is restricted from general use and is included in Prepaid expenses and other in the Company's Consolidated Balance Sheets. |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Mar. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges During fiscal 2023, the Company implemented restructuring and separation initiatives relating to the Separation Transaction which are expected to continue through fiscal 2025. Restructuring initiatives were also implemented during fiscal 2023 relating to our investment in PA Consulting, which are expected to continue through fiscal 2024, and the DVS segment reorganization, which is substantially completed. While restructuring activities for each of these programs are comprised mainly of employee termination costs, the separation activities and costs are primarily related to the engagement of outside services, dedicated internal personnel and other related costs dedicated to the Company’s Separation Transaction. During fiscal 2022, the Company implemented certain restructuring and integration initiatives relating to the acquisitions of (i) BlackLynx, Inc. (“BlackLynx”) in November 2021, and (ii) StreetLight Data, Inc. (“StreetLight”) in February 2022. Also, during fiscal 2022 and continuing into fiscal 2023, 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 substantially complete. During the fiscal year ended October 1, 2021, the Company recorded other-than-temporary impairment charges on its equity method investment in AWE Management Ltd (“AWE”) which were included in miscellaneous income (expense), net in the consolidated statement of earnings. During fiscal year 2022, the contractual operating arrangement with UK Ministry of Defence was terminated which has resulted in the wind down and full impairment of the AWE Joint Venture with immaterial activity expected going forward. During fiscal 2021, the Company implemented certain integration initiatives associated with our PA Consulting investment. The activities are substantially completed. During fiscal 2019 and continuing into fiscal 2020, the Company implemented certain restructuring and separation initiatives associated with the ECR sale and other related cost reduction initiatives. The restructuring activities and related costs were comprised mainly of separation and lease abandonment and sublease programs, while the separation activities and costs were mainly related to the engagement of consulting services and dedicated internal personnel and other related costs dedicated to the Company’s ECR-business separation. 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. The activities of these initiatives have been substantially completed. 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 reportable segment in connection with the Separation Transaction, PA Consulting investment, DVS segment reorganization, StreetLight and BlackLynx acquisitions, the Company’s transformation initiatives relating to real estate and other staffing programs, the ECR sale, and CH2M acquisition for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Critical Mission Solutions $ 4,738 $ 1,052 $ 6,901 $ 3,264 People & Places Solutions 5,655 5,869 13,784 33,186 Divergent Solutions 827 3,630 1,727 5,212 PA Consulting 2,984 — 4,159 — Corporate 27,724 2,289 56,726 5,622 Total $ 41,928 $ 12,840 $ 83,297 $ 47,284 Amounts included in: Operating profit (mainly SG&A) (1) $ 41,928 $ 12,873 $ 83,297 $ 47,945 Other Income, net — (33) — (661) $ 41,928 $ 12,840 $ 83,297 $ 47,284 (1) The three and six months ended March 29, 2024 included approximately $38.9 million and $79.1 million, respectively, in restructuring and other charges mainly relating to the Separation Transaction (primarily professional services and employee separation costs). The three and six months ended March 31, 2023, in cluded approximately $11.0 million and $38.7 million, respectively, in charges associated mainly with real estate impairments and related charges, the majority of which related to People and Places Solutions. The activity in the Company’s accruals for Restructuring and other charges for the six months ended March 29, 2024 is as follows (in thousands): Balance at September 29, 2023 $ 37,318 Net Charges (Credits) (1) 83,248 Payments and other (75,112) Balance at March 29, 2024 $ 45,454 (1) Excludes other net charges associated mainly with the real estate related impairments during the six months ended March 29, 2024. The following table summarizes the Restructuring and other charges by major type of costs for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Lease Abandonments and Impairments $ — $ 10,443 $ 49 $ 37,273 Terminations 11,823 1,939 23,551 8,509 Outside Services (1) 22,083 802 47,066 1,478 Other (2) 8,022 (344) 12,631 24 Total $ 41,928 $ 12,840 $ 83,297 $ 47,284 (1) Amounts in the three and six months ended March 29, 2024 are comprised of outside services relating to the Separation Transaction. (2) Amounts in the three and six months ended March 29, 2024 are comprised of charges relating to the Separation Transaction. Cumulative amounts incurred to date under our various Restructuring and other activities described above by each major type of cost as of March 29, 2024 are as follows (in thousands): Lease Abandonments and Impairments $ 432,773 Terminations 191,867 Outside Services 392,756 Other 208,565 Total $ 1,225,961 |
Commitments and Contingencies a
Commitments and Contingencies and Derivative Financial Instruments | 6 Months Ended |
Mar. 29, 2024 | |
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. During fiscal 2022, the Company entered into two treasury lock agreements with a total notional value of $500 million to manage its interest rate exposure to the anticipated issuance of fixed rate debt before December 2023. On February 13, 2023, the Company settled these treasury lock agreements and issued the 5.90% Bonds in the aggregate principal amount of $500 million, which resulted in the receipt of cash and a gain of $37.4 million, before tax, which is being amortized to interest expense and recognized over the term of the 5.90% Bonds. See Note 12- Borrowings for further discussion relating to the terms of the 5.90% Bonds . The unrealized net gain on these instruments was $25.1 million and $26.5 million, net of tax, and is included in accumulated other comprehensive income as of March 29, 2024 and September 29, 2023, respectively. In fiscal 2020 we entered into interest rate swap agreements with a notio nal val ue of $745.9 million as of March 29, 2024 to manage the interest rate exposure on our variable rate loans. By entering into the swap agreements, the Company converted the LIBOR and SONIA rate based liabilities into fixed rate liabilities, for periods ranging from five as of September 29, 2023 . The unrealized net gain on these interest rate swaps as of March 29, 2024 and September 29, 2023 was $59.6 million and $77.2 million, respectively, net of tax , and was included in accumulated other comprehensive income. Additionally, in fiscal 2020, we entered into a cross currency swap agreement with a notional value of $127.8 million to manage the interest rate and foreign currency exposure on our USD borrowings by a European subsidiary. By entering into the cross currency swap, the Company converted our LIBOR rate based borrowing in USD to a fixed rate Euro liability for three and a half years. During the fourth quarter of fiscal 2023, the Company paid down the borrowings hedged by the cross currency swap and settled the cross currency swap agreement. During fiscal 2023, the aggregate liability amounts denominated in U.S. dollars transitioned from underlying LIBOR benchmarked rates to the SOFR and the terms of the swaps were amended accordingly. The swaps were designated as cash-flow hedges in accordance with ASC 815, Derivatives and Hedging . Additionally, the Company held foreign exchange forward contracts in currencies that support our operations, including British Pound, Euro, Australian Dollar and other currencies, with notional values of $946.1 million at March 29, 2024 and $857.7 million at September 29, 2023. The length of these contracts currently ranges from one week to 10 months. The fair value of the foreign exchange contracts at March 29, 2024 was $(4.3) million, of which $(4.9) million is included within current liabilities and $0.6 million is included within current assets on the consolidated balance sheet as of March 29, 2024. The fair value of the contracts as of September 29, 2023 was $9.5 million, of which $16.1 million is included within current assets and $(6.6) million is included within current liabilities on the consolidated balance sheet as of September 29, 2023. A ssociated income statement impacts are included in miscellaneous income (expense) in the consolidated statements of earnings for both periods. The fair value measurements of these derivatives are being made using Level 2 inputs under ASC 820, Fair Value Measurement, as the measurements are based on observable inputs other than quoted prices in active markets. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange and interest rate contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. 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 March 29, 2024 and September 29, 2023, the Company had issued and outstanding approximately $289.7 million and $322.0 million, respectively, in LOCs and $2.2 billion and $2.0 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 (the "Legacy CH2M Matter"). The subcontract was terminated in January 2017. In or around August 2017, the Consortium commenced an arbitration. On April 12, 2022, JKC and the Consortium entered into a confidential deed of settlement (“Settlement Agreement”). Under the terms of the Settlement Agreement, CH2M, as guarantor of CH2M Australia PTY Limited’s obligations with respect to the subcontract with JKC, made a cash payment to JKC in April 2022 of AUD 640 million (or approximately $475 million using mid-April 2022 exchange rates). As a result of the settlement agreement, additional pre-tax charges of $91.3 million were recorded during the year ended September 30, 2022 for this matter (over amounts previously reserved and reported in long-term Other Deferred Liabilities in the Company's Consolidated Balance Sheet). The Settlement Agreement provided for a release of claims between JKC and each member of the Consortium, and in connection with this agreement the members of the Consortium also waived all claims against each other and their respective parent guarantors relating to the project. On December 22, 2008, a coal fly ash pond at the Kingston Power Plant of the Tennessee Valley Authority ("TVA") was breached, releasing fly ash waste into the Emory River and surrounding community. In February 2009, TVA awarded a contract to the Company to provide project management services associated with the clean-up. All remediation and dredging were completed in August 2013 by other contractors under direct contracts with TVA. The Company did not perform the remediation, and its scope was limited to program management services. Certain employees of the contractors performing the cleanup work on the project filed lawsuits against the Company beginning in August 2013, alleging they were injured due to the Company's failure to protect the plaintiffs from exposure to fly ash, and asserting related personal injuries. The primary case, Greg Adkisson, et al. v. Jacobs Engineering Group Inc., case No. 3:13-CV-505-TAV-HBG, filed in the U.S. District Court for the Eastern District of Tennessee, consisted of 10 consolidated cases. This case and the related cases involved several hundred plaintiffs that were employees of the contractors that completed the remediation and dredging work. In the second quarter of fiscal 2023, the Company entered into a settlement agreement with the plaintiffs whose cases had not been previously dismissed. As of the third quarter of fiscal 2023, all conditions to the settlement had been satisfied, and the cases dismissed. The amount of the settlement was not material to the Company's business, financial condition, results of operations or cash flows. During the fourth quarter of fiscal 2022, the Company recorded a receivable for certain expected third-party recoveries equal to approximately $27 million before tax, which was collected during first half of fiscal 2023 |
Segment Information
Segment Information | 6 Months Ended |
Mar. 29, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's four operating segments are comprised of its two global lines of business ("LOBs"): Critical Mission Solutions ("CMS") and People & Places Solutions ("P&PS"), its business unit Divergent Solutions ("DVS") and its majority investment in PA Consulting. The Company’s 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. Under this organization, the sales function is managed by segment, 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 segment 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 1999 Stock Incentive Plan, which was amended and restated in the second quarter of 2023 and is now referred to as the Jacobs 2023 Stock Incentive Plan (the "2023 SIP") have likewise been charged to the segments 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 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 16- Restructuring and Other Charges ) and transaction and integration costs (in thousands). For the Three Months Ended For the Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Revenues from External Customers: Critical Mission Solutions $ 1,229,226 $ 1,191,056 $ 2,357,829 $ 2,266,231 People & Places Solutions 2,521,860 2,345,065 4,992,301 4,572,050 Divergent Solutions 224,040 241,224 478,220 455,690 PA Consulting 293,967 300,987 599,968 583,030 Total $ 4,269,093 $ 4,078,332 $ 8,428,318 $ 7,877,001 For the Three Months Ended For the Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Segment Operating Profit: Critical Mission Solutions $ 103,649 $ 93,943 $ 197,056 $ 176,163 People & Places Solutions 267,765 232,205 492,763 458,825 Divergent Solutions (1) 18,973 24,861 26,556 36,828 PA Consulting 60,169 65,631 114,624 116,658 Total Segment Operating Profit 450,556 416,640 830,999 788,474 Other Corporate Expenses (2) (117,313) (107,623) (238,373) (201,309) Restructuring, Transaction and Other Charges (3) (52,255) (19,154) (107,574) (59,497) Total U.S. GAAP Operating Profit 280,988 289,863 485,052 527,668 Total Other Expense, net (39,403) (37,550) (77,716) (77,873) Earnings from Continuing Operations Before Taxes $ 241,585 $ 252,313 $ 407,336 $ 449,795 (1) For the six months ended March 29, 2024, operating profit included an approximate $15 million pre-tax non-cash charge associated with an inventory write down during the fiscal 2024 period comprised of cumulative adjustments of immaterial inventory misstatements previously reported which would not have been material to any prior period financial statements nor to any amounts reported in the current period. (2) Other corporate expenses included intangibles amortization of $52.6 million and $50.5 million for the three months ended March 29, 2024 and March 31, 2023, respectively, and $103.8 million and $100.2 million, for the six months ended March 29, 2024 and March 31, 2023, respectively, along with approximately $11.0 million intangibles impairment charge in the six month period ended, March 29, 2024 . Additionally, the comparison of the six month period of fiscal 2024 to the corresponding 2023 period was unfavorably impacted by the one-time net favorable impact of $41 million relating mainly to changes in employee benefits programs in the prior year, partly offset by year over year favorable department spending as well as favorable impacts of corporate functional overhead cost recovery by our lines of business. (3) The three months and six months ended March 29, 2024 included $38.9 million and $79.1 million, respectively, in restructuring and other charges and $8.4 million and $19.4 million, respectively, of transaction charges, mainly relating to the Separation Transaction (primarily professional services and employee separation costs). Included in the three months and six months ended March 31, 2023 were $10.1 million and $37.2 million, respectively, mainly in real estate impairment charges related to the Company's transformation initiatives. (1) Included in other corporate expenses in the above table are costs and expenses, which relate to general corporate activities as well as corporate-managed benefit and insurance programs. Such costs and expenses include: (i) those elements of SG&A expenses relating to the business as a whole; (ii) those elements of our incentive compensation plans relating to corporate personnel whose other compensation costs are not allocated to the LOBs; (iii) the amortization of intangible assets acquired as part of business combinations; (iv) the quarterly variances between the Company’s actual costs of certain of its self-insured integrated risk and employee benefit programs and amounts charged to the LOBs; and (v) certain adjustments relating to costs associated with the Company’s international defined benefit pension plans. In addition, other corporate expenses may also include from time to time certain adjustments to contract margins (both positive and negative) associated with projects, as well as other items, where it has been determined that such adjustments are not indicative of the performance of the related LOB. See also the further description o f results of operations for our operating segments in Item 2- Management’s Discussion and Analysis of Financial Condition and Results of Operations . |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 162,112 | $ 216,512 | $ 333,722 | $ 352,160 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Use of Estimates and Assumpti_2
Use of Estimates and Assumptions (Policies) | 6 Months Ended |
Mar. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates and Assumptions | 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 2023 Form 10-K for a more complete discussion of the various items within the consolidated financial statements measured at fair value and the methods used to determine fair value. Please also refer to Note 17- 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. |
New Accounting Pronouncements | New Accounting Pronouncements ASU 2023-09, Income Taxes , (Topic 740): Improvements to Income Tax Disclosures, provides qualitative and quantitative updates to the Company's effective income tax rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 will be effective for the Company in the first quarter of fiscal 2026. The Company has identified and is implementing changes to processes and internal controls to meet the standard’s updated reporting and disclosure requirements. ASU 2023-07, Segment Reporting, (Topic 280): Improvements to Reportable Segment Disclosures, requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity’s CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. ASU 2023-07 will be effective for the Company's annual fiscal 2025 period. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. ASU 2023-06, Disclosure Improvements : Amendments - Codification Amendments in Response to the Disclosure Update and Simplification Initiative of the Securities and Exchange Commission ("SEC"). The Financial Accounting Standards Board issued the standard to introduce changes to US GAAP that originate in either SEC Regulation S-X or S-K, which are rules about the form and content of financial reports filed with the SEC. The provisions of the standard are contingent upon instances where the SEC removes the related disclosure provisions from Regulation S-X and S-K. The Company does not expect that the application of this standard will have a material impact on our consolidated financial statements and related disclosures. |
Revenue Accounting for Contra_2
Revenue Accounting for Contracts (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table further disaggregates our revenue by geographic area for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Revenues: United States $ 2,878,888 $ 2,694,735 $ 5,676,979 $ 5,231,013 Europe 957,651 931,093 1,882,798 1,785,666 Canada 61,654 61,887 125,030 123,716 Asia 34,673 35,641 65,613 70,463 India 37,274 46,829 73,017 87,173 Australia and New Zealand 164,351 170,069 338,135 331,109 Middle East and Africa 134,602 138,078 266,746 247,861 Total $ 4,269,093 $ 4,078,332 $ 8,428,318 $ 7,877,001 |
Earnings Per Share and Certai_2
Earnings Per Share and Certain Related Information (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Earnings Per Share Reconciliation [Abstract] | |
Schedule of 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 and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Numerator for Basic and Diluted EPS: Net earnings attributable to Jacobs from continuing operations $ 162,880 $ 216,587 $ 335,064 $ 352,943 Preferred Redeemable Noncontrolling interests redemption value adjustment (See Note 15- PA Consulting Redeemable Noncontrolling Interests ) — — 1,766 — Net earnings from continuing operations allocated to common stock for EPS calculation $ 162,880 $ 216,587 $ 336,830 $ 352,943 Net loss from discontinued operations allocated to common stock for EPS calculation $ (768) $ (75) $ (1,342) $ (783) Net earnings allocated to common stock for EPS calculation $ 162,112 $ 216,512 $ 335,488 $ 352,160 Denominator for Basic and Diluted EPS: Shares used for calculating basic EPS attributable to common stock 125,712 126,886 125,909 126,855 Effect of dilutive securities: Stock compensation plans 499 473 603 573 Shares used for calculating diluted EPS attributable to common stock 126,211 127,359 126,512 127,428 Net Earnings Per Share: Basic Net Earnings from Continuing Operations Per Share $ 1.30 $ 1.71 $ 2.68 $ 2.78 Basic Net Loss from Discontinued Operations Per Share $ (0.01) $ — $ (0.01) $ (0.01) Basic Earnings Per Share $ 1.29 $ 1.71 $ 2.66 $ 2.78 Diluted Net Earnings from Continuing Operations Per Share $ 1.29 $ 1.70 $ 2.66 $ 2.77 Diluted Net Loss from Discontinued Operations Per Share $ (0.01) $ — $ (0.01) $ (0.01) Diluted Earnings Per Share $ 1.28 $ 1.70 $ 2.65 $ 2.76 |
Schedule of Share Repurchases | The following table summarizes repurchase activity under the 2023 Repurchase Authorization through the second fiscal quarter of 2024: Amount Authorized Average Price Per Share (1) Total Shares Retired Shares Repurchased $1,000,000,000 $136.86 1,428,180 1,428,180 (1) Includes commissions paid and excise tax due under the Inflation Reduction Act of 2022 and calculated at the average price per share. |
Schedule of Dividends Declared | Dividends paid through the second fiscal quarter of 2024 and the preceding fiscal year are as follows: Declaration Date Record Date Payment Date Cash Amount (per share) January 25, 2024 February 23, 2024 March 22, 2024 $0.29 September 28, 2023 October 27, 2023 November 9, 2023 $0.26 July 6, 2023 July 28, 2023 August 25, 2023 $0.26 April 27, 2023 May 26, 2023 June 23, 2023 $0.26 January 25, 2023 February 24, 2023 March 24, 2023 $0.26 September 15, 2022 September 30, 2022 October 28, 2022 $0.23 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
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 appearing in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023 was as follows (in thousands): Critical Mission Solutions People & Places Solutions Divergent Solutions PA Consulting Total Balance September 29, 2023 $ 2,244,985 $ 3,208,193 $ 595,712 $ 1,294,636 $ 7,343,526 Foreign currency translation and other 4,392 5,917 1,166 49,421 60,896 Balance March 29, 2024 $ 2,249,377 $ 3,214,110 $ 596,878 $ 1,344,057 $ 7,404,422 |
Schedule of Acquired Intangibles in Accompanying Consolidated Balance Sheets | The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023 (in thousands): Customer Relationships, Contracts and Backlog Developed Technology Trade Names Total Balance September 29, 2023 $ 1,022,401 $ 74,791 $ 174,751 $ 1,271,943 Amortization (89,669) (7,946) (6,148) (103,763) Acquired — — 14,000 14,000 Foreign currency translation and other 20,544 203 6,313 27,060 Balance March 29, 2024 $ 953,276 $ 67,048 $ 188,916 $ 1,209,240 |
Schedule of Estimated Amortization Expense of Intangible Assets | The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 2024 and for the succeeding years. Fiscal Year (in millions) 2024 $ 105.1 2025 209.8 2026 187.0 2027 154.6 2028 143.7 Thereafter 409.0 Total $ 1,209.2 |
Receivables and Contract Asse_2
Receivables and Contract Assets (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Receivables | The following table presents the components of receivables and contract assets appearing in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023, as well as certain other related information (in thousands): March 29, 2024 September 29, 2023 Components of receivables and contract assets: Amounts billed, net $ 1,517,480 $ 1,457,333 Unbilled receivables and other 1,577,510 1,442,486 Contract assets 677,494 658,987 Total receivables and contract assets, net $ 3,772,484 $ 3,558,806 Other information about receivables: Amounts due from the United States federal government, included above, net of contract liabilities $ 799,371 $ 802,566 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Equity [Abstract] | |
Schedule of 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 March 29, 2024 (in thousands): Change in Net Pension Obligation Foreign Currency Translation Adjustment (1) Gain/(Loss) on Cash Flow Hedges (2) Total Balance at September 29, 2023 $ (325,692) $ (635,937) $ 103,675 $ (857,954) Other comprehensive (loss) income (7,394) 73,177 259 66,042 Reclassifications from accumulated other comprehensive income (loss) — — (19,331) (19,331) Balance at March 29, 2024 $ (333,086) $ (562,760) $ 84,603 $ (811,243) ( 1) Included in the overall foreign currency translation adjustment for the six months ended March 29, 2024 and March 31, 2023 are $(21.2) million and $(87.2) million, respectively, in unreali zed gains (losses) on long-term foreign currency denominated intercompany loans not anticipated to be settled in the foreseeable future. (2) Included in the Company’s cumulative net unrealized gains from interest rate and cross currency swaps recorded in accumulated other comprehensive income as of March 29, 2024 were approximately $20.2 million in unrealized gains, net of taxes, which are expected to be realized in earnings during the twelve months subsequent to March 29, 2024. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | At March 29, 2024 and September 29, 2023, long-term debt consisted of the following (principal amounts in thousands): Interest Rate Maturity March 29, 2024 September 29, 2023 Revolving Credit Facility Benchmark + applicable margin (1) (2) February 2028 $ 135,000 $ 10,000 2021 Term Loan Facility - USD Portion Benchmark + applicable margin (1) (3) February 2026 120,000 120,000 2021 Term Loan Facility - GBP Portion Benchmark + applicable margin (1) (3) September 2025 823,095 794,170 2020 Term Loan Facility Benchmark + applicable margin (1) (4) March 2025 (6) 837,260 854,246 Fixed-rate: 5.9% Bonds, due 2033 5.9% (5) March 2033 500,000 500,000 6.35% Bonds, due 2028 6.35% August 2028 600,000 600,000 Less: Current Portion (6) (837,260) (51,773) Less: Deferred Financing Fees (13,252) (13,172) Total Long-term debt, net $ 2,164,843 $ 2,813,471 (1) During the year ended September 29, 2023, the aggregate principal amounts denominated in U.S. dollars under the Revolving Credit Facility, the 2021 Term Loan Facility and the 2020 Term Loan Facility (each as defined below) transitioned from underlying LIBOR benchmarked rates to the Term Secured Overnight Financing Rate ("SOFR"). During fiscal 2022, the aggregate principal amounts denominated in British pounds under the Revolving Credit Facility, 2021 Term Loan Facility and 2020 Term Loan Facility transitioned from underlying LIBOR benchmarked rates to Sterling Overnight Index Average ("SONIA") rates. (2) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the Revolving Credit Facility (defined below)), U.S. dollar denominated borrowings under the Revolving Credit Facility bear interest at either a SOFR rate plus a margin of between 0.975% and 1.725% or a base rate plus a margin of between 0% and 0.625%. The applicable SOFR rates, or LIBOR rate for the prior fiscal year end, including applicable margins at March 29, 2024 and September 29, 2023 were approximately 6.68% and 8.75%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908% and 1.658%. There were no amounts drawn in British pounds as of March 29, 2024. (3) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the Amended and Restated Term Loan Agreement (defined below)), U.S. dollar denominated borrowings under the 2021 Term Loan Facility bear interest at either a SOFR rate plus a margin of between 0.975% and 1.725% or a base rate plus a margin of between 0% and 0.625%. The applicable SOFR, or LIBOR rate for the prior fiscal year end, including applicable margins for borrowings denominated in U.S. dollars at March 29, 2024 and September 29, 2023 was approximately 6.67% and 6.68%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908% and 1.658%, which was approximately 6.47% and 6.47% at March 29, 2024 and September 29, 2023, respectively. (4) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the 2020 Term Loan Agreement), U.S. dollar denominated borrowings under the 2020 Term Loan Facility bear interest at either a SOFR rate plus a margin of between 0.975% and 1.725% or a base rate plus a margin of between 0% and 0.625%. The applicable SOFR, or LIBOR rate for the prior fiscal year end, including applicable margins for borrowings denominated in U.S. dollars at March 29, 2024 and September 29, 2023 were approximately 6.68% and 6.68%. Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908% and 1.658%, which was approximately 6.47% and 6.47% at March 29, 2024 and September 29, 2023, respectively. (5) From and including September 1, 2028 (the “First Step Up Date”), the interest rate payable on the 5.90% Bonds (as defined below) will be increased by an additional 12.5 basis points to 6.025% per annum (the “First Step Up Interest Rate”) unless the Company notifies the Trustee (as defined below) on or before the date that is 15 days prior to the First Step Up Date that the Percentage of Gender Diversity Performance Target (as defined in the First Supplemental Indenture (as defined below)) has been satisfied and receives a related assurance letter verifying such compliance. From and including September 1, 2030 (the “Second Step Up Date”), the interest rate payable on the 5.90% Bonds will be increased by 12.5 basis points to (x) 6.150% per annum if the First Step Up Interest Rate was in effect immediately prior to the Second Step Up Date or (y) 6.025% per annum if the initial interest rate was in effect immediately prior to the Second Step Up Date, unless the Company notifies the Trustee on or before the date that is 15 days prior to the Second Step Up Date that the GHG Emissions Performance Target (as defined in the First Supplemental Indenture) has been satisfied and receives a related assurance letter verifying such compliance. (6) Balance as of March 29, 2024 is associated with the March 25, 2025 scheduled maturity of the 2020 Term Loan Facility, which was reclassified from long-term debt in March 2024. Previously reported balance as of September 29, 2023 was comprised of the 2020 Term Loan quarterly principal repayments of 1.25%, or $9.1 million and £3.1 million, of the aggregate initial principal amount borrowed, totaling $51.8 million in U.S. dollars for the subsequent twelve months. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Leases [Abstract] | |
Schedule of Lease Cost | The components of lease expense (reflected in selling, general and administrative expenses) for th e three and six months ended March 29, 2024 and March 31, 2023 were as follows (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Lease expense Operating lease expense $ 33,992 $ 35,539 $ 68,192 $ 70,821 Variable lease expense 9,799 9,416 19,136 18,762 Sublease income (4,757) (4,414) (9,468) (8,820) Total lease expense $ 39,034 $ 40,541 $ 77,860 $ 80,763 Supplemental information related to the Company's leases for the six months ended March 29, 2024 and March 31, 2023 was as follows (in thousands): Six Months Ended March 29, 2024 March 31, 2023 Cash paid for amounts included in the measurements of lease liabilities $ 91,565 $ 92,142 Right-of-use assets obtained in exchange for new operating lease liabilities $ 23,742 $ 42,150 Weighted average remaining lease term - operating leases 5.7 years 6.1 years Weighted average discount rate - operating leases 3.4% 3.0% |
Schedule of Operating Lease Maturity | Total remaining lease payments under the Company's leases for the remainder of fiscal 2024 and for the succeeding years is as follows (in thousands): Fiscal Year Operating Leases 2024 $ 89,020 2025 149,091 2026 125,476 2027 102,627 2028 84,734 Thereafter 166,659 717,607 Less Interest (66,212) $ 651,395 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plans' Net Benefit Obligation | The following table presents the components of net periodic pension benefit expense recognized in earnings during the three and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Component: Service cost $ 2,261 $ 1,748 $ 4,522 $ 3,496 Interest cost 21,560 20,233 43,120 40,466 Expected return on plan assets (23,726) (21,091) (47,452) (42,182) Amortization of previously unrecognized items 1,949 1,304 3,898 2,608 Total net periodic pension benefit expense recognized $ 2,044 $ 2,194 $ 4,088 $ 4,388 |
Schedule of Certain Information Regarding Cash Contributions | The following table presents certain information regarding the Company’s cash contributions to our pension plans for fiscal 2024 (in thousands): Cash contributions made during the first six months of fiscal 2024 $ 10,076 Cash contributions projected for the remainder of fiscal 2024 9,205 Total $ 19,281 |
PA Consulting Redeemable Nonc_2
PA Consulting Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
PA Consulting Group Limited | |
Business Acquisition [Line Items] | |
Schedule of Redeemable Noncontrolling Interest | Changes in the redeemable noncontrolling interests d uring the six months ended March 29, 2024 are as follows (in thousands): Balance at September 29, 2023 $ 632,979 Accrued Preferred Dividend to Preference Shareholders 39,710 Attribution of Preferred Dividend to Common Shareholders (39,710) Net earnings attributable to redeemable noncontrolling interests to Common Shareholders 6,700 Redeemable Noncontrolling interests redemption value adjustment 96,562 Repurchase of redeemable noncontrolling interests (26,258) Cumulative translation adjustment and other 15,847 Balance at March 29, 2024 $ 725,830 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule 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 reportable segment in connection with the Separation Transaction, PA Consulting investment, DVS segment reorganization, StreetLight and BlackLynx acquisitions, the Company’s transformation initiatives relating to real estate and other staffing programs, the ECR sale, and CH2M acquisition for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Critical Mission Solutions $ 4,738 $ 1,052 $ 6,901 $ 3,264 People & Places Solutions 5,655 5,869 13,784 33,186 Divergent Solutions 827 3,630 1,727 5,212 PA Consulting 2,984 — 4,159 — Corporate 27,724 2,289 56,726 5,622 Total $ 41,928 $ 12,840 $ 83,297 $ 47,284 Amounts included in: Operating profit (mainly SG&A) (1) $ 41,928 $ 12,873 $ 83,297 $ 47,945 Other Income, net — (33) — (661) $ 41,928 $ 12,840 $ 83,297 $ 47,284 (1) The three and six months ended March 29, 2024 included approximately $38.9 million and $79.1 million, respectively, in restructuring and other charges mainly relating to the Separation Transaction (primarily professional services and employee separation costs). The three and six months ended March 31, 2023, in cluded approximately $11.0 million and $38.7 million, respectively, in charges associated mainly with real estate impairments and related charges, the majority of which related to People and Places Solutions. |
Schedule of Restructuring and Other Activities | The activity in the Company’s accruals for Restructuring and other charges for the six months ended March 29, 2024 is as follows (in thousands): Balance at September 29, 2023 $ 37,318 Net Charges (Credits) (1) 83,248 Payments and other (75,112) Balance at March 29, 2024 $ 45,454 (1) Excludes other net charges associated mainly with the real estate related impairments during the six months ended March 29, 2024. |
Schedule 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 and six months ended March 29, 2024 and March 31, 2023 (in thousands): Three Months Ended Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Lease Abandonments and Impairments $ — $ 10,443 $ 49 $ 37,273 Terminations 11,823 1,939 23,551 8,509 Outside Services (1) 22,083 802 47,066 1,478 Other (2) 8,022 (344) 12,631 24 Total $ 41,928 $ 12,840 $ 83,297 $ 47,284 (1) Amounts in the three and six months ended March 29, 2024 are comprised of outside services relating to the Separation Transaction. (2) Amounts in the three and six months ended March 29, 2024 are comprised of charges relating to the Separation Transaction. |
Schedule 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 March 29, 2024 are as follows (in thousands): Lease Abandonments and Impairments $ 432,773 Terminations 191,867 Outside Services 392,756 Other 208,565 Total $ 1,225,961 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 29, 2024 | |
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 16- Restructuring and Other Charges ) and transaction and integration costs (in thousands). For the Three Months Ended For the Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Revenues from External Customers: Critical Mission Solutions $ 1,229,226 $ 1,191,056 $ 2,357,829 $ 2,266,231 People & Places Solutions 2,521,860 2,345,065 4,992,301 4,572,050 Divergent Solutions 224,040 241,224 478,220 455,690 PA Consulting 293,967 300,987 599,968 583,030 Total $ 4,269,093 $ 4,078,332 $ 8,428,318 $ 7,877,001 For the Three Months Ended For the Six Months Ended March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023 Segment Operating Profit: Critical Mission Solutions $ 103,649 $ 93,943 $ 197,056 $ 176,163 People & Places Solutions 267,765 232,205 492,763 458,825 Divergent Solutions (1) 18,973 24,861 26,556 36,828 PA Consulting 60,169 65,631 114,624 116,658 Total Segment Operating Profit 450,556 416,640 830,999 788,474 Other Corporate Expenses (2) (117,313) (107,623) (238,373) (201,309) Restructuring, Transaction and Other Charges (3) (52,255) (19,154) (107,574) (59,497) Total U.S. GAAP Operating Profit 280,988 289,863 485,052 527,668 Total Other Expense, net (39,403) (37,550) (77,716) (77,873) Earnings from Continuing Operations Before Taxes $ 241,585 $ 252,313 $ 407,336 $ 449,795 (1) For the six months ended March 29, 2024, operating profit included an approximate $15 million pre-tax non-cash charge associated with an inventory write down during the fiscal 2024 period comprised of cumulative adjustments of immaterial inventory misstatements previously reported which would not have been material to any prior period financial statements nor to any amounts reported in the current period. (2) Other corporate expenses included intangibles amortization of $52.6 million and $50.5 million for the three months ended March 29, 2024 and March 31, 2023, respectively, and $103.8 million and $100.2 million, for the six months ended March 29, 2024 and March 31, 2023, respectively, along with approximately $11.0 million intangibles impairment charge in the six month period ended, March 29, 2024 . Additionally, the comparison of the six month period of fiscal 2024 to the corresponding 2023 period was unfavorably impacted by the one-time net favorable impact of $41 million relating mainly to changes in employee benefits programs in the prior year, partly offset by year over year favorable department spending as well as favorable impacts of corporate functional overhead cost recovery by our lines of business. (3) The three months and six months ended March 29, 2024 included $38.9 million and $79.1 million, respectively, in restructuring and other charges and $8.4 million and $19.4 million, respectively, of transaction charges, mainly relating to the Separation Transaction (primarily professional services and employee separation costs). Included in the three months and six months ended March 31, 2023 were $10.1 million and $37.2 million, respectively, mainly in real estate impairment charges related to the Company's transformation initiatives. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) shares in Millions | Apr. 26, 2019 | Mar. 29, 2024 |
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 | |
Worley | Discontinued Operations | ||
Business Acquisition [Line Items] | ||
Assets held for sale | $ 0 |
Revenue Accounting for Contra_3
Revenue Accounting for Contracts - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4,269,093 | $ 4,078,332 | $ 8,428,318 | $ 7,877,001 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,878,888 | 2,694,735 | 5,676,979 | 5,231,013 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 957,651 | 931,093 | 1,882,798 | 1,785,666 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 61,654 | 61,887 | 125,030 | 123,716 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34,673 | 35,641 | 65,613 | 70,463 |
India | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 37,274 | 46,829 | 73,017 | 87,173 |
Australia and New Zealand | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 164,351 | 170,069 | 338,135 | 331,109 |
Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 134,602 | $ 138,078 | $ 266,746 | $ 247,861 |
Revenue Accounting for Contra_4
Revenue Accounting for Contracts - Contract Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized included in contract liability | $ 105.2 | $ 82.7 | $ 474.9 | $ 413 |
Revenue Accounting for Contra_5
Revenue Accounting for Contracts - Remaining Performance Obligation (Details) $ in Billions | Mar. 29, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amounts | $ 17.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 56% |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-30 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 44% |
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 | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Numerator for Basic and Diluted EPS: | ||||
Net earnings attributable to Jacobs from continuing operations | $ 162,880 | $ 216,587 | $ 335,064 | $ 352,943 |
Preferred Redeemable Noncontrolling interests redemption value adjustment (See Note 15- PA Consulting Redeemable Noncontrolling Interests) | 0 | 0 | 1,766 | 0 |
Net earnings from continuing operations allocated to common stock for EPS calculation | 162,880 | 216,587 | 336,830 | 352,943 |
Net loss from discontinued operations allocated to common stock for EPS calculation | (768) | (75) | (1,342) | (783) |
Net earnings allocated to common stock for EPS calculation | $ 162,112 | $ 216,512 | $ 335,488 | $ 352,160 |
Denominator for Basic and Diluted EPS: | ||||
Shares used for calculating basic EPS attributable to common stock (in shares) | 125,712 | 126,886 | 125,909 | 126,855 |
Effect of dilutive securities: | ||||
Stock compensation plans (in shares) | 499 | 473 | 603 | 573 |
Shares used for calculating diluted EPS attributable to common stock (in shares) | 126,211 | 127,359 | 126,512 | 127,428 |
Basic Earnings Per Share | ||||
Basic Net Earnings from Continuing Operations Per Share (in dollars per share) | $ 1.30 | $ 1.71 | $ 2.68 | $ 2.78 |
Basic Net Loss from Discontinued Operations Per Share (in dollars per share) | (0.01) | 0 | (0.01) | (0.01) |
Basic Earnings Per Share (in dollars per share) | 1.29 | 1.71 | 2.66 | 2.78 |
Diluted Earnings Per Share | ||||
Diluted Net Earnings from Continuing Operations Per Share (in dollars per share) | 1.29 | 1.70 | 2.66 | 2.77 |
Diluted Net Loss from Discontinued Operations Per Share (in dollars per share) | (0.01) | 0 | (0.01) | (0.01) |
Diluted Earnings Per Share (in dollars per share) | $ 1.28 | $ 1.70 | $ 2.65 | $ 2.76 |
Earnings Per Share and Certai_4
Earnings Per Share and Certain Related Information - Narrative (Details) - USD ($) | May 02, 2024 | Jan. 25, 2024 | Sep. 28, 2023 | Jul. 06, 2023 | Apr. 27, 2023 | Jan. 25, 2023 | Sep. 15, 2022 | Mar. 29, 2024 | Jan. 16, 2020 |
Class of Stock [Line Items] | |||||||||
Dividend declared (in dollars per share) | $ 0.29 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.23 | |||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend declared (in dollars per share) | $ 0.29 | ||||||||
2020 Stock Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Amount authorized to be repurchased | $ 1,000,000,000 | ||||||||
2023 Stock Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Amount authorized to be repurchased | $ 1,000,000,000 | $ 1,000,000,000 | |||||||
Remaining authorized repurchase amount | $ 679,400,000 |
Earnings Per Share and Certai_5
Earnings Per Share and Certain Related Information - Schedule of Share Repurchases (Details) - 2023 Stock Repurchase Program - USD ($) | 3 Months Ended | |
Mar. 29, 2024 | Jan. 25, 2023 | |
Class of Stock [Line Items] | ||
Amount authorized to be repurchased | $ 1,000,000,000 | $ 1,000,000,000 |
Average Price Per Share (in dollars per share) | $ 136.86 | |
Total Shares Retired (in shares) | 1,428,180 | |
Shares Repurchased (in shares) | 1,428,180 |
Earnings Per Share and Certai_6
Earnings Per Share and Certain Related Information - Schedule of Dividends (Details) - $ / shares | Mar. 22, 2024 | Jan. 25, 2024 | Nov. 09, 2023 | Sep. 28, 2023 | Aug. 25, 2023 | Jul. 06, 2023 | Jun. 23, 2023 | Apr. 27, 2023 | Mar. 24, 2023 | Jan. 25, 2023 | Oct. 28, 2022 | Sep. 15, 2022 |
Earnings Per Share Reconciliation [Abstract] | ||||||||||||
Dividend declared (in dollars per share) | $ 0.29 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.23 | ||||||
Dividends paid (in dollars per share) | $ 0.29 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.23 |
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 | 6 Months Ended |
Mar. 29, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 7,343,526 |
Foreign currency translation and other | 60,896 |
Balance at the end of the period | 7,404,422 |
Critical Mission Solutions | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 2,244,985 |
Foreign currency translation and other | 4,392 |
Balance at the end of the period | 2,249,377 |
People & Places Solutions | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 3,208,193 |
Foreign currency translation and other | 5,917 |
Balance at the end of the period | 3,214,110 |
Divergent Solutions | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 595,712 |
Foreign currency translation and other | 1,166 |
Balance at the end of the period | 596,878 |
PA Consulting | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 1,294,636 |
Foreign currency translation and other | 49,421 |
Balance at the end of the period | $ 1,344,057 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Acquired Intangibles in Accompanying Consolidated Balance Sheets (Details) $ in Thousands | 6 Months Ended |
Mar. 29, 2024 USD ($) | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 1,271,943 |
Amortization | (103,763) |
Acquired | 14,000 |
Foreign currency translation and other | 27,060 |
Ending balance | 1,209,240 |
Customer Relationships, Contracts and Backlog | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 1,022,401 |
Amortization | (89,669) |
Acquired | 0 |
Foreign currency translation and other | 20,544 |
Ending balance | 953,276 |
Developed Technology | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 74,791 |
Amortization | (7,946) |
Acquired | 0 |
Foreign currency translation and other | 203 |
Ending balance | 67,048 |
Trade Names | |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | 174,751 |
Amortization | (6,148) |
Acquired | 14,000 |
Foreign currency translation and other | 6,313 |
Ending balance | $ 188,916 |
Goodwill and Intangibles - Sc_3
Goodwill and Intangibles - Schedule of Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Sep. 29, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 105,100 | |
2025 | 209,800 | |
2026 | 187,000 | |
2027 | 154,600 | |
2028 | 143,700 | |
Thereafter | 409,000 | |
Total | $ 1,209,240 | $ 1,271,943 |
Receivables and Contract Asse_3
Receivables and Contract Assets (Details) - USD ($) $ in Thousands | Mar. 29, 2024 | Sep. 29, 2023 |
Components of receivables and contract assets: | ||
Amounts billed, net | $ 1,517,480 | $ 1,457,333 |
Unbilled receivables and other | 1,577,510 | 1,442,486 |
Contract assets | 677,494 | 658,987 |
Total receivables and contract assets, net | 3,772,484 | 3,558,806 |
Related Party | ||
Other information about receivables: | ||
Amounts due from the United States federal government, included above, net of contract liabilities | $ 799,371 | $ 802,566 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ 6,600,082 | $ 6,104,392 |
Other comprehensive (loss) income | 66,042 | |
Reclassifications from accumulated other comprehensive income (loss) | (19,331) | |
Ending balance | 6,678,462 | 6,428,024 |
Foreign currency translation adjustment | (21,200) | (87,200) |
Interest rate and cross currency swap gains to be reclassified during the next 12 months | 20,200 | |
Total | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (857,954) | (975,130) |
Ending balance | (811,243) | $ (838,042) |
Change in Net Pension Obligation | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (325,692) | |
Other comprehensive (loss) income | (7,394) | |
Reclassifications from accumulated other comprehensive income (loss) | 0 | |
Ending balance | (333,086) | |
Foreign Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (635,937) | |
Other comprehensive (loss) income | 73,177 | |
Reclassifications from accumulated other comprehensive income (loss) | 0 | |
Ending balance | (562,760) | |
Gain/(Loss) on Cash Flow Hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 103,675 | |
Other comprehensive (loss) income | 259 | |
Reclassifications from accumulated other comprehensive income (loss) | (19,331) | |
Ending balance | $ 84,603 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Income Tax Contingency [Line Items] | ||||
Effective income tax rate | 27.90% | 7.60% | 12.60% | 15.40% |
U.S state income tax expense | $ 4 | $ 5.9 | $ 7.3 | $ 10.5 |
U.S tax on foreign earnings | $ 5.5 | 4.6 | 8.6 | 8.2 |
Deferred income tax benefit, change in indefinite reinvestment assertion in foreign subsidiary | 40.2 | $ 61.6 | ||
Foreign tax credits | 8.6 | 8.6 | ||
Settled tax benefit related to uncertain tax positions | $ 39 | |||
Domestic Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Reductions for tax positions of prior years | $ 30.8 |
Joint Ventures, VIEs and Othe_2
Joint Ventures, VIEs and Other Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | Sep. 29, 2023 | |
Variable Interest Entity [Line Items] | |||||
Consolidated assets | $ 14,897,577 | $ 14,897,577 | $ 14,617,109 | ||
Income from equity method investments | 6,983 | $ 2,931 | |||
Variable Interest Entity, Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Consolidated assets | 391,800 | 391,800 | 424,200 | ||
Consolidated liabilities | 244,300 | 244,300 | 279,800 | ||
VIE, not primary beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Consolidated assets | 128,900 | 128,900 | 132,000 | ||
Consolidated liabilities | 126,000 | 126,000 | 128,900 | ||
Equity method investments | 54,400 | 54,400 | 49,600 | ||
Income from equity method investments | 15,200 | $ 7,500 | 25,500 | $ 17,500 | |
Accounts receivable from unconsolidated joint ventures accounted for under the equity method | $ 14,400 | $ 14,400 | $ 16,100 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Debt (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 18, 2023 | Feb. 16, 2023 | Dec. 29, 2023 | Mar. 29, 2024 USD ($) | Sep. 29, 2023 USD ($) | Sep. 29, 2023 GBP (£) | Mar. 29, 2024 GBP (£) | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 2,164,843 | $ 2,813,471 | |||||
Less: Current Portion | (837,260) | (51,773) | |||||
Less: Deferred Financing Fees | (13,252) | (13,172) | |||||
2021 Term Loan Facility - USD Portion | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 120,000 | 120,000 | |||||
2021 Term Loan Facility - USD Portion | Base Interest Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0% | ||||||
2021 Term Loan Facility - USD Portion | Base Interest Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.625% | ||||||
2021 Term Loan Facility - GBP Portion | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 823,095 | $ 794,170 | |||||
2021 Term Loan Facility - GBP Portion | Sterling Overnight Interbank Average Rate (SONIA) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.47% | 6.47% | 6.47% | ||||
2021 Term Loan Facility - GBP Portion | Sterling Overnight Interbank Average Rate (SONIA) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.658% | 0.908% | |||||
2020 Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 837,260 | $ 854,246 | |||||
Quarterly principal payment, percent of aggregate borrowings | 1.25% | ||||||
Quarterly principal payment | $ 9,100 | £ 3,100,000 | |||||
2020 Term Loan Facility | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.68% | 6.68% | |||||
2020 Term Loan Facility | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.975% | ||||||
2020 Term Loan Facility | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.725% | ||||||
2020 Term Loan Facility | Base Interest Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0% | ||||||
2020 Term Loan Facility | Base Interest Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.625% | ||||||
2020 Term Loan Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.68% | ||||||
2020 Term Loan Facility | Sterling Overnight Interbank Average Rate (SONIA) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.47% | 6.47% | 6.47% | ||||
2020 Term Loan Facility | Sterling Overnight Interbank Average Rate (SONIA) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.658% | 0.908% | |||||
5.90% Bonds | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 500,000 | $ 500,000 | |||||
Interest rate | 5.90% | ||||||
Interest rate, increase (decrease) over period | 0.35% | ||||||
5.90% Bonds | Senior Notes | First Step Up Date | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.90% | 5.90% | |||||
Debt instrument, basis spread on variable rate | 6.025% | ||||||
Interest rate, increase (decrease) over period | 0.125% | ||||||
Interest rate payable period | 15 days | ||||||
5.90% Bonds | Senior Notes | Second Step Up Date | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.90% | 5.90% | |||||
Debt instrument, basis spread on variable rate | 6.15% | ||||||
Interest rate, increase (decrease) over period | 0.125% | ||||||
Interest rate payable period | 15 days | ||||||
6.35% Bonds | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 600,000 | $ 600,000 | |||||
Interest rate | 6.35% | ||||||
Interest rate, increase (decrease) over period | 0.30% | ||||||
2021 Term Loan Facility - USD Portion | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.67% | 6.67% | |||||
2021 Term Loan Facility - USD Portion | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.975% | ||||||
2021 Term Loan Facility - USD Portion | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.725% | ||||||
2021 Term Loan Facility - USD Portion | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.68% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 135,000 | $ 10,000 | £ 0 | ||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 6.68% | 6.68% | |||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.975% | ||||||
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.725% | ||||||
Revolving Credit Facility | Base Interest Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0% | ||||||
Revolving Credit Facility | Base Interest Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.625% | ||||||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Effective interest rate | 8.75% | ||||||
Revolving Credit Facility | Sterling Overnight Interbank Average Rate (SONIA) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.908% | ||||||
Revolving Credit Facility | Sterling Overnight Interbank Average Rate (SONIA) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.658% |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) $ in Thousands, £ in Millions | 6 Months Ended | |||||||||||
Aug. 18, 2023 USD ($) | Feb. 16, 2023 USD ($) | Feb. 06, 2023 USD ($) | Feb. 06, 2023 GBP (£) | Mar. 27, 2019 | Mar. 29, 2024 USD ($) | Mar. 31, 2023 USD ($) | Sep. 29, 2023 USD ($) | Feb. 13, 2023 USD ($) | Sep. 30, 2022 USD ($) derivative_agreement | Mar. 25, 2020 USD ($) | Mar. 25, 2020 GBP (£) | |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from long-term borrowings | $ 1,716,577 | $ 2,075,495 | ||||||||||
Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Current maturities of long-term debt | 289,700 | $ 322,000 | ||||||||||
Treasury Lock | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of instruments held | derivative_agreement | 2 | |||||||||||
Derivative notional amount | $ 500,000 | |||||||||||
Fixed Rate Date | Treasury Lock | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | 500,000 | $ 500,000 | ||||||||||
2021 Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from long-term borrowings | $ 200,000 | £ 650 | ||||||||||
Long-term line of credit | $ 80,000 | |||||||||||
2020 Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 730,000 | |||||||||||
2020 Term Loan Facility | U.K. subsidiary | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | £ | £ 250 | |||||||||||
5.90% Bonds | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 500,000 | |||||||||||
Interest rate | 5.90% | |||||||||||
Interest rate, increase (decrease) over period | 0.35% | |||||||||||
Redemption price percentage | 100% | |||||||||||
6.35% Bonds | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 600,000 | |||||||||||
Interest rate | 6.35% | |||||||||||
Interest rate, increase (decrease) over period | 0.30% | |||||||||||
Redemption price percentage | 100% | |||||||||||
Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Available borrowing capacity | 2,110,000 | |||||||||||
Revolving Credit Facility | Unsecured Revolving Credit Facility February 6, 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, maximum borrowing capacity | $ 2,250,000 | |||||||||||
Revolving Credit Facility | Second Amendment to the Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Covenant, leverage ratio, maximum | 3.50 | |||||||||||
Covenant, leverage ratio, temporary maximum | 4 | |||||||||||
Revolving Credit Facility | Second Amendment to the Revolving Credit Facility | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.10% | |||||||||||
Revolving Credit Facility | Second Amendment to the Revolving Credit Facility | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||||||||||
Revolving Credit Facility | 2021 Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Covenant, leverage ratio, maximum | 3.50 | |||||||||||
Covenant, leverage ratio, temporary maximum | 4 | |||||||||||
Revolving Credit Facility | 2020 Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Covenant, leverage ratio, maximum | 3.50 | |||||||||||
Covenant, leverage ratio, temporary maximum | 4 | |||||||||||
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 | 500 | |||||||||||
Letter of Credit | Committed and Uncommitted Letter-of-Credit Facilities | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term line of credit | $ 289,200 | |||||||||||
Sub Facility Of Swing Line Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility, maximum borrowing capacity | $ 100,000 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||||
Operating lease expense | $ 33,992 | $ 35,539 | $ 68,192 | $ 70,821 |
Variable lease expense | 9,799 | 9,416 | 19,136 | 18,762 |
Sublease income | (4,757) | (4,414) | (9,468) | (8,820) |
Total lease expense | $ 39,034 | $ 40,541 | $ 77,860 | $ 80,763 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 29, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurements of lease liabilities | $ 91,565 | $ 92,142 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 23,742 | $ 42,150 |
Weighted average remaining lease term - operating leases | 5 years 8 months 12 days | 6 years 1 month 6 days |
Weighted average discount rate - operating leases | 3.40% | 3% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Maturity (Details) $ in Thousands | Mar. 29, 2024 USD ($) |
Leases [Abstract] | |
2024 | $ 89,020 |
2025 | 149,091 |
2026 | 125,476 |
2027 | 102,627 |
2028 | 84,734 |
Thereafter | 166,659 |
Remaining lease payments under operating leases | 717,607 |
Less Interest | (66,212) |
Operating lease liabilities | $ 651,395 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | |||
Recognized impairment charges | $ 10,100 | $ 37,200 | |
Impairment of long-lived assets | $ 0 | 37,217 | |
Right-of-Use Lease Asset | |||
Lessee, Lease, Description [Line Items] | |||
Impairment of long-lived assets | 32,400 | ||
Other Long-Lived Assets | |||
Lessee, Lease, Description [Line Items] | |||
Impairment of long-lived assets | $ 4,800 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Schedule of Pension Plans' Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Component: | ||||
Service cost | $ 2,261 | $ 1,748 | $ 4,522 | $ 3,496 |
Interest cost | 21,560 | 20,233 | 43,120 | 40,466 |
Expected return on plan assets | (23,726) | (21,091) | (47,452) | (42,182) |
Amortization of previously unrecognized items | 1,949 | 1,304 | 3,898 | 2,608 |
Total net periodic pension benefit expense recognized | $ 2,044 | $ 2,194 | $ 4,088 | $ 4,388 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefit Plans - Schedule of Certain Information Regarding Cash Contributions (Details) $ in Thousands | 6 Months Ended |
Mar. 29, 2024 USD ($) | |
Retirement Benefits [Abstract] | |
Cash contributions made during the first six months of fiscal 2024 | $ 10,076 |
Cash contributions projected for the remainder of fiscal 2024 | 9,205 |
Total | $ 19,281 |
PA Consulting Redeemable Nonc_3
PA Consulting Redeemable Noncontrolling Interests - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | Sep. 29, 2023 | Mar. 02, 2021 | |
Business Acquisition [Line Items] | ||||||
Repurchase of redeemable noncontrolling interests | $ 24,360 | $ 58,353 | ||||
Preferred redeemable noncontrolling interests redemption value adjustment | $ 0 | $ 0 | $ 1,766 | 0 | ||
Preference share effect on basic earnings per share (in dollars per share) | $ 0.01 | |||||
PA Consulting Employees | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interest of employees | 70% | 70% | 69% | |||
PA Consulting Group Limited | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of outstanding shares of common and preferred stock acquired | 65% | |||||
Allocated share-based compensation expense | $ 6,800 | $ 1,100 | ||||
Cash in employee benefit trust | $ 1,000 | $ 1,000 | $ 2,800 |
PA Consulting Redeemable Nonc_4
PA Consulting Redeemable Noncontrolling Interests - Schedule of Change in Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Redeemable noncontrolling interest, beginning balance | $ 53,862 | |||
Attribution of Preferred Dividend to Common Shareholders | $ (9,568) | $ (8,910) | (14,081) | $ (10,783) |
Redeemable noncontrolling interest, ending balance | 54,348 | 54,348 | ||
PA Consulting Employees | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Redeemable noncontrolling interest, beginning balance | 632,979 | |||
Accrued Preferred Dividend to Preference Shareholders | 39,710 | |||
Attribution of Preferred Dividend to Common Shareholders | (39,710) | |||
Net earnings attributable to redeemable noncontrolling interests to Common Shareholders | 6,700 | |||
Redeemable Noncontrolling interests redemption value adjustment | 96,562 | |||
Repurchase of redeemable noncontrolling interests | (26,258) | |||
Cumulative translation adjustment and other | 15,847 | |||
Redeemable noncontrolling interest, ending balance | $ 725,830 | $ 725,830 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Schedule of Restructuring and Other Charges Impacts on Reportable Segment Income by Line of Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 83,248 | |||
CH2M HILL Companies, Ltd. | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 41,928 | $ 12,840 | 83,297 | $ 47,284 |
CH2M HILL Companies, Ltd. | Operating profit (mainly SG&A) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 41,928 | 12,873 | 83,297 | 47,945 |
Real estate impairment and other moving cost | 11,000 | 38,700 | ||
CH2M HILL Companies, Ltd. | Operating profit (mainly SG&A) | Professional Services and Employee Seperation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 38,900 | 79,100 | ||
CH2M HILL Companies, Ltd. | Other Income, net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 0 | (33) | 0 | (661) |
CH2M HILL Companies, Ltd. | Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 27,724 | 2,289 | 56,726 | 5,622 |
CH2M HILL Companies, Ltd. | Critical Mission Solutions | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 4,738 | 1,052 | 6,901 | 3,264 |
CH2M HILL Companies, Ltd. | People & Places Solutions | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 5,655 | 5,869 | 13,784 | 33,186 |
CH2M HILL Companies, Ltd. | Divergent Solutions | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 827 | 3,630 | 1,727 | 5,212 |
CH2M HILL Companies, Ltd. | PA Consulting | Operating Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 2,984 | $ 0 | $ 4,159 | $ 0 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Restructuring and Other Activities (Details) $ in Thousands | 6 Months Ended |
Mar. 29, 2024 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 37,318 |
Net Charges (Credits) | 83,248 |
Payments and other | (75,112) |
Ending balance | $ 45,454 |
Restructuring and Other Charg_5
Restructuring and Other Charges - Schedule of Restructuring and Other Activities by Major Type of Costs (Details) - CH2M Hill, KeyM, John Wood Group Acquisitions and ECR Sale - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 41,928 | $ 12,840 | $ 83,297 | $ 47,284 |
Lease Abandonments and Impairments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 10,443 | 49 | 37,273 |
Terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 11,823 | 1,939 | 23,551 | 8,509 |
Outside Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 22,083 | 802 | 47,066 | 1,478 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 8,022 | $ (344) | $ 12,631 | $ 24 |
Restructuring and Other Charg_6
Restructuring and Other Charges - Schedule of Cumulative Amounts Incurred for Restructuring and Other Activities Costs (Details) $ in Thousands | Mar. 29, 2024 USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | $ 1,225,961 |
Lease Abandonments and Impairments | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | 432,773 |
Terminations | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | 191,867 |
Outside Services | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | 392,756 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative amounts incurred to date | $ 208,565 |
Commitments and Contingencies_2
Commitments and Contingencies and Derivative Financial Instruments (Details) $ in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | |||||||
Feb. 13, 2023 USD ($) | Apr. 12, 2022 USD ($) | Apr. 12, 2022 AUD ($) | Mar. 29, 2024 USD ($) | Sep. 29, 2023 USD ($) | Sep. 30, 2022 USD ($) derivative_agreement | Oct. 02, 2020 USD ($) | Sep. 28, 2012 MW | Dec. 22, 2008 case | |
Loss Contingencies [Line Items] | |||||||||
Recorded third-party environmental recoveries receivable | $ 27 | ||||||||
JKC Australia LNG Pty Limited | |||||||||
Loss Contingencies [Line Items] | |||||||||
Settlement payment | $ 475 | ||||||||
General Electric and GE Electrical International Inc | |||||||||
Loss Contingencies [Line Items] | |||||||||
Plant capacity (in MW's) | MW | 360 | ||||||||
Settlement payment | $ 640 | ||||||||
Litigation expenses included in segment profit | $ 91.3 | ||||||||
Kingston Power Plant of the TVA, Secondary Case No. 3:13CV-505-TAV-HBG | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of pending claims | case | 10 | ||||||||
UGL Infrastructure Pty Limited | Consortium Agreement | |||||||||
Loss Contingencies [Line Items] | |||||||||
Percentage of ownership interest in joint venture | 50% | ||||||||
Surety Bond | |||||||||
Loss Contingencies [Line Items] | |||||||||
Aggregate principal balance of short-term debt | $ 2,200 | $ 2,000 | |||||||
LOCs | |||||||||
Loss Contingencies [Line Items] | |||||||||
Aggregate principal balance of short-term debt | 289.7 | 322 | |||||||
Treasury Lock | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of instruments held | derivative_agreement | 2 | ||||||||
Derivative notional amount | $ 500 | ||||||||
Gain on derivatives, before taxes | $ 37.4 | ||||||||
Unrealized gain (loss) on derivatives | 25.1 | 26.5 | |||||||
Treasury Lock | Fixed Rate Date | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative fixed interest rate | 5.90% | ||||||||
Aggregate principal amount | $ 500 | 500 | |||||||
Interest Rate Swap | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative notional amount | 745.9 | ||||||||
Unrealized gain (loss) on derivatives | 59.6 | 77.2 | |||||||
Derivative assets (liabilities), at fair value | 79.1 | 102.6 | |||||||
Interest Rate Swap | Other Current Assets | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative assets (liabilities), at fair value | 12.9 | ||||||||
Interest Rate Swap | Total Other Non-current Assets | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative assets (liabilities), at fair value | $ 66.2 | ||||||||
Interest Rate Swap | Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Term of derivative contract | 5 years | ||||||||
Interest Rate Swap | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Term of derivative contract | 10 years | ||||||||
Cross Currency Interest Rate Contract | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative notional amount | $ 127.8 | ||||||||
Cross Currency Interest Rate Contract | Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Term of derivative contract | 3 years 6 months | ||||||||
Foreign Exchange Forward | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative notional amount | $ 946.1 | 857.7 | |||||||
Derivative assets (liabilities), at fair value | (4.3) | 9.5 | |||||||
Foreign Exchange Forward | Current Liabilities | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative assets (liabilities), at fair value | (4.9) | (6.6) | |||||||
Foreign Exchange Forward | Current Assets | |||||||||
Loss Contingencies [Line Items] | |||||||||
Derivative assets (liabilities), at fair value | $ 0.6 | $ 16.1 | |||||||
Foreign Exchange Forward | Minimum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Term of derivative contract | 7 days | ||||||||
Foreign Exchange Forward | Maximum | |||||||||
Loss Contingencies [Line Items] | |||||||||
Term of derivative contract | 10 months |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Mar. 29, 2024 line_of_business segment | |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 4 |
Number of lines business | line_of_business | 2 |
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 | 6 Months Ended | ||
Mar. 29, 2024 | Mar. 31, 2023 | Mar. 29, 2024 | Mar. 31, 2023 | |
Revenues from External Customers: | ||||
Revenues | $ 4,269,093 | $ 4,078,332 | $ 8,428,318 | $ 7,877,001 |
Segment Operating Profit: | ||||
Total Segment Operating Profit | 280,988 | 289,863 | 485,052 | 527,668 |
Restructuring, Transaction and Other Charges | (52,255) | (19,154) | (107,574) | (59,497) |
Total U.S. GAAP Operating Profit | 280,988 | 289,863 | 485,052 | 527,668 |
Total Other Expense, net | (39,403) | (37,550) | (77,716) | (77,873) |
Earnings from Continuing Operations Before Taxes | 241,585 | 252,313 | 407,336 | 449,795 |
Inventory | 15,000 | |||
Amortization of intangible assets | 103,763 | |||
Asset impairment charges | 11,000 | |||
One-time benefit program changes | 41,000 | |||
Restructuring charges | 83,248 | |||
Real estate related impairments and other transformation | 10,100 | 37,200 | ||
Professional Services and Employee Seperation | ||||
Segment Operating Profit: | ||||
Restructuring, Transaction and Other Charges | (8,400) | (19,400) | ||
CH2M HILL Companies, Ltd. | ||||
Segment Operating Profit: | ||||
Restructuring charges | 41,928 | 12,840 | 83,297 | 47,284 |
Operating profit (mainly SG&A) | CH2M HILL Companies, Ltd. | ||||
Segment Operating Profit: | ||||
Restructuring charges | 41,928 | 12,873 | 83,297 | 47,945 |
Operating profit (mainly SG&A) | CH2M HILL Companies, Ltd. | Professional Services and Employee Seperation | ||||
Segment Operating Profit: | ||||
Restructuring charges | 38,900 | 79,100 | ||
Operating Segments | ||||
Segment Operating Profit: | ||||
Total Segment Operating Profit | 450,556 | 416,640 | 830,999 | 788,474 |
Total U.S. GAAP Operating Profit | 450,556 | 416,640 | 830,999 | 788,474 |
Corporate | ||||
Segment Operating Profit: | ||||
Other Corporate Expenses | (117,313) | (107,623) | (238,373) | (201,309) |
Corporate | CH2M HILL Companies, Ltd. | ||||
Segment Operating Profit: | ||||
Restructuring charges | 27,724 | 2,289 | 56,726 | 5,622 |
Corporate | Other Expense | ||||
Segment Operating Profit: | ||||
Amortization of intangible assets | 52,600 | 50,500 | 103,800 | 100,200 |
Critical Mission Solutions | Operating Segments | ||||
Revenues from External Customers: | ||||
Revenues | 1,229,226 | 1,191,056 | 2,357,829 | 2,266,231 |
Segment Operating Profit: | ||||
Total Segment Operating Profit | 103,649 | 93,943 | 197,056 | 176,163 |
Total U.S. GAAP Operating Profit | 103,649 | 93,943 | 197,056 | 176,163 |
Critical Mission Solutions | Operating Segments | CH2M HILL Companies, Ltd. | ||||
Segment Operating Profit: | ||||
Restructuring charges | 4,738 | 1,052 | 6,901 | 3,264 |
People & Places Solutions | Operating Segments | ||||
Revenues from External Customers: | ||||
Revenues | 2,521,860 | 2,345,065 | 4,992,301 | 4,572,050 |
Segment Operating Profit: | ||||
Total Segment Operating Profit | 267,765 | 232,205 | 492,763 | 458,825 |
Total U.S. GAAP Operating Profit | 267,765 | 232,205 | 492,763 | 458,825 |
Divergent Solutions | Operating Segments | ||||
Revenues from External Customers: | ||||
Revenues | 224,040 | 241,224 | 478,220 | 455,690 |
Segment Operating Profit: | ||||
Total Segment Operating Profit | 18,973 | 24,861 | 26,556 | 36,828 |
Total U.S. GAAP Operating Profit | 18,973 | 24,861 | 26,556 | 36,828 |
Divergent Solutions | Operating Segments | CH2M HILL Companies, Ltd. | ||||
Segment Operating Profit: | ||||
Restructuring charges | 827 | 3,630 | 1,727 | 5,212 |
PA Consulting | Operating Segments | ||||
Revenues from External Customers: | ||||
Revenues | 293,967 | 300,987 | 599,968 | 583,030 |
Segment Operating Profit: | ||||
Total Segment Operating Profit | 60,169 | 65,631 | 114,624 | 116,658 |
Total U.S. GAAP Operating Profit | 60,169 | 65,631 | 114,624 | 116,658 |
PA Consulting | Operating Segments | CH2M HILL Companies, Ltd. | ||||
Segment Operating Profit: | ||||
Restructuring charges | $ 2,984 | $ 0 | $ 4,159 | $ 0 |