CH2M Hill Companies 10-Q 3 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 25, 2015	Oct. 29, 2015
Document and Entity Information
Entity Registrant Name	CH2M HILL COMPANIES LTD
Entity Central Index Key	777,491
Document Type	10-Q
Document Period End Date	Sep. 25, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-25
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		26,702,376
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 25, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 154,938	$ 131,477
Receivables, net-
Client accounts	673,799	697,168
Unbilled revenue	618,874	660,227
Other	16,512	22,447
Income tax receivable		31,369
Deferred income taxes	17,583	5,968
Prepaid expenses and other current assets	78,182	74,413
Total current assets	1,559,888	1,623,069
Investments in unconsolidated affiliates	89,430	94,340
Property, plant and equipment, net	204,275	258,160
Goodwill	520,851	533,975
Intangible assets, net	66,126	91,379
Deferred income taxes	268,483	250,055
Employee benefit plan assets and other	73,054	90,324
Total assets	2,782,107	2,941,302
Current liabilities:
Current portion of long-term debt	2,653	5,028
Accounts payable and accrued subcontractor costs	476,342	530,822
Billings in excess of revenue	269,404	336,063
Accrued payroll and employee related liabilities	351,478	289,330
Income tax payable	28,867
Other accrued liabilities	304,487	406,991
Total current liabilities	1,433,231	1,568,234
Long-term employee related liabilities	628,874	671,581
Long-term debt	266,865	508,021
Other long-term liabilities	76,212	105,898
Total liabilities	$ 2,405,182	$ 2,853,734
Commitments and contingencies (Note 13)
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized of which 10,000,000 are designated as Series A; 3,214,400 issued and outstanding at September 25, 2015 and none issued or outstanding as of December 31, 2014	$ 32
Common stock, $0.01 par value, 100,000,000 shares authorized; 26,720,340 and 27,323,570 issued and outstanding at September 25, 2015 and December 31, 2014, respectively	267	$ 273
Additional paid-in capital	166,135
Retained earnings	561,798	484,842
Accumulated other comprehensive loss	(294,676)	(272,357)
Total CH2M common stockholders' equity	433,556	212,758
Noncontrolling interests	(56,631)	(125,190)
Total stockholders' equity	376,925	87,568
Total liabilities and stockholders' equity	$ 2,782,107	$ 2,941,302

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 25, 2015	Dec. 31, 2014
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	3,214,400	0
Preferred stock, shares outstanding	3,214,400	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	26,720,340	27,323,570
Common stock, shares outstanding	26,720,340	27,323,570
Series A Preferred Stock
Preferred stock, shares authorized	10,000,000	10,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014
Consolidated Statements of Operations
Gross revenue	$ 1,365,877	$ 1,422,537	$ 3,953,911	$ 4,104,434
Equity in earnings	14,890	11,909	36,908	47,086
Operating expenses:
Direct cost of services	(1,094,161)	(1,336,770)	(3,174,592)	(3,506,969)
Selling, general and administrative expense	(220,246)	(259,267)	(679,619)	(796,113)
Impairment losses on goodwill and intangibles		73,312		73,312
Operating income (loss)	66,360	(234,903)	136,608	(224,874)
Other income (expense):
Interest income	56	131	158	626
Interest expense	(3,041)	(4,792)	(11,421)	(11,547)
Income before provision for income taxes	63,375	(239,564)	125,345	(235,795)
(Provision) benefit for income taxes	(13,104)	25,827	(31,935)	25,339
Net income (loss)	50,271	(213,737)	93,410	(210,456)
Less: (income) loss attributable to noncontrolling interests	(9,060)	82,495	(12,423)	84,572
Net income (loss) attributable to CH2M	$ 41,211	$ (131,242)	$ 80,987	$ (125,884)
Net income (loss) attributable to CH2M per common share:
Basic (in dollars per share)	$ 1.42	$ (4.69)	$ 2.87	$ (4.43)
Diluted (in dollars per share)	$ 1.16	$ (4.69)	$ 2.69	$ (4.43)
Weighted average number of common shares:
Basic (in shares)	27,139,832	27,973,502	27,281,219	28,429,394
Diluted (in shares)	31,321,113	27,973,502	28,716,940	28,429,394

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014
Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ 50,271	$ (213,737)	$ 93,410	$ (210,456)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(17,365)	(12,070)	(30,253)	(7,023)
Benefit plan adjustments, net of tax	2,657	1,005	7,935	2,844
Unrealized (loss) gain on available-for-sale securities
Unrealized gain on available-for-sale securities and other, net of tax		(89)		(27)
Less: reclassification adjustment for gains included in net income, net of tax		185		185
Other comprehensive loss:	(14,708)	(11,339)	(22,318)	(4,391)
Comprehensive income (loss)	35,563	(225,076)	71,092	(214,847)
Less: comprehensive income (loss) attributable to noncontrolling interests	(9,060)	82,495	(12,423)	84,572
Comprehensive income (loss) attributable to CH2M	$ 26,503	$ (142,581)	$ 58,669	$ (130,275)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ 93,410	$ (210,456)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	55,580	67,278
Stock-based employee compensation	25,005	44,492
Gain on disposal of property, plant and equipment	(3,647)	(143)
Loss on goodwill and intangible impairment		73,312
Allowance for uncollectible accounts	1,646	1,337
Deferred income taxes	(31,628)	(52,781)
Undistributed earnings from unconsolidated affiliates	(36,908)	(47,086)
Distributions of income from unconsolidated affiliates	39,948	42,572
Contributions to defined benefit pension plans	(29,459)	(28,601)
Change in assets and liabilities:
Receivables and unbilled revenue	45,431	(19,270)
Prepaid expenses and other	11,469	(7,531)
Accounts payable and accrued subcontractor costs	(50,511)	55,954
Billings in excess of revenue	(61,221)	(33,876)
Accrued payroll and employee related liabilities	67,414	(12,016)
Other accrued liabilities	(91,694)	140,398
Current income taxes	58,540	(3,006)
Long term employee related liabilities and other	(23,241)	16,580
Net cash provided by operating activities	70,134	27,157
Cash flows from investing activities:
Capital expenditures	(21,506)	(58,738)
Acquisitions, net of cash acquired		(87,607)
Investments in unconsolidated affiliates	(23,897)	(9,549)
Distributions of capital from unconsolidated affiliates	20,855	10,079
Gain on sale of investments		(261)
Proceeds from sale of operating assets	39,878	2,203
Net cash provided by (used in) investing activities	15,330	(143,873)
Cash flows from financing activities:
Borrowings on long-term debt	1,718,769	1,343,583
Payments on long-term debt	(1,962,730)	(1,215,477)
Repurchases and retirements of common stock	(58,483)	(136,014)
Proceeds from the issuance of preferred stock, net of issuance costs	191,677
Excess tax benefits from stock-based compensation	3,931	7,541
Net distributions from (to) noncontrolling interests	56,136	(1,469)
Net cash used in financing activities	(50,700)	(1,836)
Effect of exchange rate changes on cash	(11,303)	3,146
Increase (decrease) in cash and cash equivalents	23,461	(115,406)
Cash and cash equivalents, beginning of year	131,477	294,261
Cash and cash equivalents, end of year	154,938	178,855
Supplemental disclosures:
Cash paid for interest	11,171	11,713
Cash paid for income taxes	$ 16,637	$ 21,939

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	9 Months Ended
	Sep. 25, 2015
Summary of Business and Significant Accounting Policies
Summary of Business and Significant Accounting Policies	(1) Summary of Business and Significant Accounting Policies Summary of Business CH2M Hill Companies, Ltd. and subsidiaries (“We”, “Our”, “CH2M” or the “Company”) is a project delivery firm founded in 1946. We are an employee-controlled professional engineering services firm providing engineering, construction, consulting, design, design build, procurement, engineering procurement construction (“EPC”), operations and maintenance, program management and technical services to U.S. federal, state, municipal and local government agencies, national governments, as well as private industry and utilities, around the world. A substantial portion of our professional fees are derived from projects that are funded directly or indirectly by government entities. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and according to instructions to Form 10-Q and the provisions of Article 10 of Regulation S-X that are applicable to interim financial statements. Accordingly, these statements do not include all of the information required by GAAP or the Securities and Exchange Commission (“SEC”) rules and regulations for annual audited financial statements. The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions have been prepared on the basis of the most current and best available information. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These unaudited interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014 . Change in Fiscal Year End On March 30, 2015, in order to accommodate our financial accounting systems and the timely gathering and reporting of financial information, we changed our reporting period from a calendar year ending on December 31 of each year to a fiscal year ending on the last Friday of December of each year. Our fiscal quarters will also end on the last Friday of March, June, and September. This change has been retroactively applied as if it was adopted as of January 1, 2015. The change in fiscal year-end did not have a material effect on the comparability of the periods presented. Revenue Recognition We earn revenue from different types of services performed under various types of contracts, including cost-plus, fixed-price and time-and-materials. We evaluate contractual arrangements to determine how to recognize revenue. We primarily perform engineering and construction related services and recognize revenue for these contracts on the percentage-of-completion method where progress towards completion is measured by relating the actual cost of work performed to date to the current estimated total cost of the respective contract. In making such estimates, judgments are required to evaluate potential variances in schedule, the cost of materials and labor, productivity, liability claims, contract disputes, and achievement of contract performance standards. We record the cumulative effect of changes in contract revenue and cost at completion in the period in which the changed estimates are determined to be reliably estimable. Below is a description of the basic types of contracts from which we may earn revenue: Cost-Plus Contracts . Cost-plus contracts can be cost plus a fixed fee or rate, or cost plus an award fee. Under these types of contracts, we charge our clients for our costs, including both direct and indirect costs, with an additional fixed negotiated fee or award fee. We generally recognize revenue based on the actual labor costs and non-labor costs we incur, plus the portion of the fixed fee or award fee we have earned to date. Included in the total contract value for cost-plus fee arrangements is the portion of the fee for which receipt is determined to be probable. Award fees are influenced by the achievement of contract milestones, cost savings and other factors. Fixed-Price Contracts . Under fixed-price contracts, our clients pay us an agreed amount negotiated in advance for a specified scope of work. For engineering and construction contracts, we recognize revenue on fixed-price contracts using the percentage-of-completion method where direct costs incurred to date are compared to total projected direct costs at contract completion. Prior to completion, our recognized profit margins on any fixed-price contract depend on the accuracy of our estimates and will increase to the extent that our actual costs are below the original estimated amounts. Conversely, if our costs exceed these estimates, our profit margins will decrease, and we may realize a loss on a project. Time-and-Materials Contracts . Under our time-and-materials contracts, we negotiate hourly billing rates and charge our clients based on the actual time that we expend on a project. In addition, clients reimburse us for our actual out of pocket costs of materials and other direct expenditures that we incur in connection with our performance under the contract. Our profit margins on time-and-materials contracts fluctuate based on actual labor and overhead costs that we directly charge or allocate to contracts compared with the negotiated billing rate and markup on other direct costs. Some of our time-and-materials contracts are subject to maximum contract values, and accordingly, revenue under these contracts is recognized under the percentage-of-completion method where costs incurred to date are compared to total projected costs at contract completion. Revenue on contracts that is not subject to maximum contract values is recognized based on the actual number of hours we spend on the projects plus any actual out of pocket costs of materials and other direct expenditures that we incur on the projects. Operations and Maintenance Contracts . A portion of our contracts are operations and maintenance type contracts. Revenue is recognized on operations and maintenance contracts on a straight-line basis over the life of the contract once we have an arrangement, service has begun, the price is fixed or determinable and collectability is reasonably assured. For all contract types noted above, change orders are included in total estimated contract revenue when it is probable that the change order will result in an addition to contract value and when the change order can be estimated. Management evaluates when a change order is probable based upon its experience in negotiating change orders, the customer’s written approval of such changes or separate documentation of change order costs that are identifiable. Losses on construction and engineering contracts in process are recognized in their entirety when the loss becomes evident and the amount of loss can be reasonably estimated. Unbilled Revenue and Billings in Excess of Revenue Unbilled revenue represents the excess of contract revenue recognized over billings to date on contracts in process. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Billings in excess of revenue represent the excess of billings to date, per the contract terms, over revenue recognized on contracts in process. A significant portion of our billings in excess balance relates to excess billings on design-build projects. These projects often require us to order significant project materials and equipment in advance, and we request payment in advance from our clients to cover these costs. As the projects near completion and our suppliers complete the construction of these components and we complete the installation, the billings in excess balance declines. Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities are valued based upon observable and non-observable inputs. Valuations using Level 1 inputs are based on unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 inputs utilize significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly; and valuations using Level 3 inputs are based on significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. There were no significant transfers between levels during the quarters ended September 25, 2015 and September 30, 2014 . Restructuring Related Costs We account for costs associated with restructuring activities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 420, Exit or Disposal Cost Obligations . An exit activity includes but is not limited to a restructuring, such as a sale or termination of a line of business, the closure of business activities in a particular location, the relocation of business activities from one location to another, changes in management structure, and a fundamental reorganization that affects the nature and focus of operations. The Company recognizes a liability and the related expense for restructuring costs when the liability is incurred and can be measured. Restructuring accruals are based upon management estimates at the time they are recorded and can change depending upon changes in facts and circumstances subsequent to the date the original liability was recorded. Nonretirement postemployment benefits offered as special termination benefits to employees, such as a voluntary early retirement program, are recognized as a liability and a loss when the employee accepts the offer and the amount can be reasonably estimated in accordance with ASC Topic 712, Compensation-Nonretirement Postemployment Benefits . Goodwill Goodwill represents the excess of costs over fair value of the assets of businesses we have acquired. Goodwill acquired in a purchase business combination is not amortized, but instead, is tested for impairment at least annually in accordance with the provisions of ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), as amended under Accounting Standards Update 2011-08 (“ASU 2011-08”). Upon the occurrence of certain triggering events, we are also required to test for impairment at dates other than the annual impairment testing date. In performing the impairment test, we evaluate our goodwill at the reporting unit level. Under the guidance of ASC 350, we have the option to assess either quantitative or qualitative factors to determine whether it is more likely than not that the fair values of our reporting units are less than their carrying amounts. If after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair values of our reporting units are less than their carrying amounts, then the next step of the impairment test is unnecessary. If we conclude otherwise, then we are required to test goodwill for impairment under the two-step process. The two-step process involves comparing the estimated fair value of each reporting unit to the unit’s carrying value, including goodwill. If the carrying value of a reporting unit does not exceed its fair value, the goodwill of the reporting unit is not considered impaired; therefore, the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, we would then perform a second step to measure the amount of goodwill impairment loss to be recorded. We determine the fair value of our reporting units using a combination of the income approach, the market approach, and the cost approach. The income approach calculates the present value of future cash flows based on assumptions and estimates derived from a review of our expected revenue growth rates, profit margins, business plans, cost of capital and tax rates for the reporting units. Our market based valuation method estimates the fair value of our reporting units by the application of a multiple to our estimate of a cash flow metric for each business unit. The cost approach estimates the fair value of a reporting unit as the fair value of its assets net of the fair value of its liabilities. Intangible Assets We may acquire other intangible assets in business combinations. Intangible assets are stated at fair value as of the date they are acquired in a business combination. We amortize intangible assets with finite lives on a straight-line basis over their expected useful lives, currently up to ten years. We test our intangible assets for impairment in the period in which a triggering event or change in circumstance indicates that the carrying amount of the intangible asset may not be recoverable. If the carrying amount of the intangible asset exceeds the fair value, an impairment loss will be recognized in the amount of the excess. We determine the fair value of the intangible assets using a discounted cash flow approach. Derivative Instruments We primarily enter into derivative financial instruments to mitigate exposures to changing foreign currency exchange rates on our earnings and cash flows . We are primarily subject to this risk on long-term projects whereby the currency being paid by our client differs from the currency in which we incurred our costs, as well as intercompany trade balances among entities with differing currencies. We do not enter into derivative transactions for speculative or trading purposes. All derivatives are carried at fair value on the consolidated balance sheets in other receivables or accounts payable and accrued subcontractor costs as applicable. The periodic change in the fair value of the derivative instruments is recognized in earnings within general and administrative expense. Retirement and Tax-Deferred Savings Plan The Retirement and Tax Deferred Savings Plan is a retirement plan that includes a cash or deferred arrangement that is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code and provides benefits to eligible employees upon retirement. In September 2012, our Board of Directors approved the CH2M Companies, Ltd. Amended and Restated 401(k) Plan which became effective January 1, 2013 (“401(k) Plan”). The 401(k) Plan allows for matching contributions up to 6% of employee’s base compensation, although specific subsidiaries may have different limits on employer matching. The matching contributions may be made in both cash and/or stock. Expenses related to matching contributions made in common stock for the 401(k) Plan for the three and nine months ended September 25, 2015 were $3.8 million and $16.3 million, respectively, as compared to $13.3 million and $37.0 million for the three and nine months ended September 30, 2014 , respectively. Recently Adopted Accounting Standards In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets . ASU 2015-04 provides a practical expedient for entities with defined benefit plan assets and obligations whose fiscal years and interim periods do not coincide with a month-end. The ASU allows these entities to use the month-end that is closest to the entity’s fiscal year-end or interim period-end for measuring the defined benefit plan assets and obligations if the practical expedient is applied consistently to all plans and each year. However, if a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end or interim period-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. Entities are required to disclose the accounting policy election and the date used to measure the defined benefit plan assets and obligations. ASU 2015-04 will be effective for financial statements issued for fiscal years beginning after December 15, 2015, with earlier election permitted, and the application of the amendment should be applied prospectively. CH2M will early elect this ASU for our fiscal year ending December 25, 2015. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . ASU 2015-02 provides updated consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This ASU requires that all legal entities be subject to reevaluation under the revised consolidation model. ASU 2015-02 will be effective for annual and interim periods beginning after December 15, 2015. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The ASU requires that management evaluate for each annual and interim reporting period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. If there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, additional disclosures are required, even if the substantial doubt is alleviated as a result of consideration of management’s plans. This ASU is effective for annual and interim periods beginning after December 15, 2016, and early adoption is permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This ASU is a comprehensive new revenue recognition model that is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU also requires additional quantitative and qualitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB has deferred the effective date of this ASU for reporting periods beginning after December 15, 2017. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. CH2M is currently evaluating the impact of this ASU and the transition alternatives on its financial position and results of operations.

Changes in Project-Related Esti

Changes in Project-Related Estimates	9 Months Ended
	Sep. 25, 2015
Changes in Project-Related Estimates
Changes in Project-Related Estimates	(2) Changes in Project-Related Estimates During 2015, we experienced additional cost growth on a Transportation fixed-price contract to design and construct roadway improvements on an expressway in the southwestern United States. The cost growth was primarily caused by resource and work constraints reducing work productivity rates, and delayed resolution with the client on movement of traffic. Additionally, the project experienced delays from unexpected subsurface site conditions and from late delivery of a third party contractor’s design. As a result of these changes in estimate, a $53.6 million charge to operations was incurred during the nine months ende d September 25, 2015. T here was no charge to operations for the three months ended September 25, 2015 . In the three and nine months ended September 30, 2014, a charge of $38.7 million was incurred against operating income due to changes in estimate. As of September 25, 2015 , the project is approximately 50% complete. Management is assessing the recovery of cost overruns and the impact of schedule delays and is pursuing cost recovery and schedule relief through the contractual claims process; however, at this time it is not possible to estimate these recoveries. We may incur additional costs and losses if our cost estimation processes identify new costs not previously included in our total estimated loss or if our plans to meet our revised schedule are not achieved resulting in liquidated damages under our contract. These potential changes in estimates could be materially adverse to the Company’s results of operations. Within our Power segment, we are involved in a fixed-price project in Australia through a consolidated 50/50 joint venture partnership with an Australian construction contractor to engineer, procure, construct and start-up a combined cycle power plant that will supply power to a large liquefied natural gas facility in Australia. As of September 25, 2015 , the total contract value of the joint venture project was approximately $425.0 million, and the project was approximately 65% complete, with engineering and procurement nearing completion and construction activities ongoing. Due to a variety of issues related to the joint venture scope of work identified, we recognized changes in estimated contract costs that resulted in charges to operations of $280.0 million during 2014, which represents the total expected loss of the joint venture project at completion. Our portion of the loss, which was recorded in 2014, totaled $140.0 million. Of the total expected loss at completion, $170.0 million was recorded during the three and nine months ended September 30, 2014, and our portion of that loss totaled $85.0 million. No further cost growth has occurred in 2015 to date. Management believes the project has suffered from substantial client interference related to numerous design changes, delays in providing timely access to site delivery facilities and access to certain construction materials. These items have resulted in a significant increase in the cost to complete the project as well as a delay in the start of construction activities and possibly the ultimate delivery of the power facility. While management believes the current estimated cost to complete the project represents the best estimate at this time and management has been able to manage the project within the current estimate to complete as the work has progressed, there is a significant amount of work that still needs to be performed on the project before achieving substantial completion, and thus there can be no assurance that additional cost growth will not occur. Management is continuing to negotiate with the client to settle certain claims and to revise certain provisions of the contract. In addition, management continues to vigorously pursue recovery of costs and schedule impacts with the assistance of external legal and commercial claims specialists. Management believes it will gain a better understanding during the fourth quarter as to whether a settlement is possible, and, if so, how the terms of such settlement would impact the joint venture’s estimated costs at completion. If an agreement is not reached with the client, management will continue to pursue recovery of costs through all means currently available under the existing contract and at law. In addition, if these recovery steps are not successful, we might not recover previously incurred or potential future cost overruns from the client, and the joint venture might be assessed liquidated damages in excess of amounts already included in the current estimated loss at completion, which could materially affect the company’s results of operations. During 2014, we experienced significant cost growth on a fixed-price Power contract to design and construct a new power generation facility in the northeastern United States. These increases in costs resulted from multiple sources including a substantial decline in union labor productivity, poor subcontractor performance and the impacts of schedule delays caused by the above items and severe weather in the northeastern United States. The effect of these changes in estimates resulted in a charge to operations totaling $61.5 million in the nine months ended September 30, 2014 . There were no additional charges to operations in the nine months ended September 25, 2015 months as the project achieved substantial completion in 2014. Management is seeking recovery of a portion of the total project loss from the client, including relief from a portion of the liquidated damages assessed by the client through the date of substantial completion due to client interference and other remedies under the terms of the contract. During 2015, both CH2M and our client filed litigation against each other. While our goal remains amicable settlement of the disputes, we intend to vigorously pursue our claim for cost recovery. There can be no assurance we will be successful in obtaining such recoveries. All reserves for project related losses are included in other current liabilities, which totaled $143.0 million and $222.4 million as of September 25, 2015 and December 31, 2014 , respectively. Of the amounts included in the September 25, 2015 and December 31, 2014 balances, $52.6 million and $91.8 million, respectively, relate to accrued project losses attributable to, and payable by, a noncontrolling joint venture partner.

Segment Information

Segment Information	9 Months Ended
	Sep. 25, 2015
Segment Information
Segment Information	(3) Segment Information During 2014, we implemented certain significant organizational changes, including the manner in which our operations are managed through a matrix organization of business groups, geographic regions and service lines. In the first quarter of 2015, we refined this matrix structure, and continued to reorganize our internal reporting structure by making changes to better facilitate our strategy for growth, client-centric service, and operational efficiency. In connection with this refinement, we continued to reevaluate the manner in which our Chief Operating Decision Maker (“CODM”) reviews operating results and makes key business decisions. Our CODM is our executive management committee that meets regularly to evaluate operating results and allocate our financial and operational resources. As part of the reevaluation in 2015, we determined that our CODM primarily reviews financial operating results by business group, and as such, we have identified each of our five business groups as reportable operating segments: Environment and Nuclear; Industrial and Urban Environments (“IUE”); Oil, Gas and Chemicals; Transportation; and Water. Additionally, although the Power group falls within the IUE business group, we have identified Power as a separate reportable operating segment as we are currently in the process of exiting the fixed-price EPC Power business and as such the results of this group are being monitored apart from the rest of the business group. Certain financial information relating to the three and nine months ended September 25, 2015 and September 30, 2014 for each segment is provided below. Costs for corporate general and administrative expenses, restructuring costs and amortization expense related to intangible assets have been allocated based upon the estimated allocation to each segment based on the benefits provided by corporate functions. This allocation is primarily based upon metrics that reflect the proportionate volume of project-related activity and employee labor costs within each segment. Prior year amounts have been revised to conform to the current year presentation. Three Months Ended September 25, 2015 Three Months Ended September 30, 2014 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Environment and Nuclear $ $ $ $ $ $ Industrial and Urban Environments Oil, Gas and Chemicals Transportation Water Power — Total $ $ $ $ $ $ Nine Months Ended September 25, 2015 Nine Months Ended September 30, 2014 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Environment and Nuclear $ $ $ $ $ $ Industrial and Urban Environments Oil, Gas and Chemicals Transportation Water Power — Total $ $ $ $ $ $

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 25, 2015
Stockholders' Equity
Stockholders’ Equity	(4) Stockholders’ Equity The changes in stockholders’ equity for the nine months ended September 25, 2015 are as follows (in thousands): Common Preferred Shares Shares Amount Stockholders’ equity, December 31, 2014 — $ Shares purchased and retired — Shares issued in connection with stock-based compensation and employee benefit plans — Series A Preferred Stock, net of issuance costs Net income attributable to CH2M — — Other comprehensive loss, net of tax — — Income attributable to noncontrolling interests — — Net distributions from noncontrolling interests — — Stockholders’ equity, September 25, 2015 $ Preferred Stock As of September 25, 2015 , the Company had 50,000,000 shares of preferred stock, $0.01 par value, authorized. On June 22, 2015, the Company designated 10,000,000 shares as Series A Preferred Stock with an original issue price of $62.22 under the Certificate of Designation. On June 24, 2015, the Company sold and issued an aggregate of 3,214,400 shares of Series A Preferred Stock for an aggregate purchase price of $200.0 million in a private placement to a subsidiary owned by investment funds affiliated with Apollo Global Management, LLC (together with its subsidiaries, “Apollo”). Total proceeds from the preferred stock offering were $191.7 million, net of issuance costs of $8.3 million. The sale occurred in connection with the Initial Closing (“Initial Closing”) pursuant to the Subscription Agreement entered into by the Company and Apollo on May 27, 2015 (“Subscription Agreement”). Subject to the conditions within the Subscription Agreement, Apollo will purchase an additional 1,607,200 shares of Series A Preferred Stock for an aggregate purchase price of approximately $100.0 million in a second closing which will occur on the one -year anniversary of the Initial Closing or upon the earlier election of the Company. Dividends. Dividends on the Series A Preferred Stock are cumulative and accrue quarterly in arrears at the annual rate of 5.0% on the sum of the original issue price of $62.22 per share plus all accumulated and unpaid accruing dividends, regardless of whether or not declared by the Board. After June 24, 2020 (the “Fifth Anniversary”), the rate at which dividends accrue may increase from 5.0% to 10.0% or 15.0% if there was a failure of the stockholders to approve certain other actions to facilitate an initial public offering as well as a failure to approve a sale of the Company. Dividends accruing on shares of Series A Preferred Stock prior to the Fifth Anniversary are not paid in cash or in kind but are added to the liquidation preference of the Series A Preferred Stock. After the Fifth Anniversary, dividends shall continue to accrue on shares of Series A Preferred Stock and will be payable in cash at the election of the Board. However, if after the Fifth Anniversary if there was a failure of the stockholders to approve certain other actions to facilitate an initial public offering as well as a failure to approve a sale of the Company, dividends accrued on shares of Series A Preferred Stock will be payable in cash or in kind at the election of the holders of a majority of the outstanding shares of Series A Preferred Stock. Additionally, if the Company declares certain dividends on the common stock, the Company is required to declare and pay a dividend on the outstanding shares of Series A Preferred Stock on a pro rata basis with the common stock, determined on an as-converted basis. Liquidation Preference . In the event of any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, or any other transaction deemed a liquidation event pursuant to the Certificate of Designation for the Series A Preferred Stock (including a sale of the Company), each holder of outstanding shares of Series A Preferred Stock will be entitled to be paid out of the assets of the Company available for distribution to stockholders before any payment may be made to the holders of Common Stock. Each holder would receive an amount equal to the number of outstanding Series A Preferred Stock shares held multiplied by $62.22 plus either accrued and unpaid dividends on such shares or, if the liquidation event occurs before the Firth Anniversary, an amount equal to all dividends that would have been accrued during the period from the date of issuance through the Fifth Anniversary, and any other dividends declared on such shares. However, if the amount that the holders of Series A Preferred Stock would have received if all outstanding shares of Series A Preferred Stock had been converted into Common Stock immediately prior to the liquidation event exceeded the amount discussed previously, the holders of Series A Preferred Stock will receive the greater amount. Conversion. Each share of Series A Preferred Stock may be converted at any time at the option of the holder into a number of shares of Common Stock as is determined by dividing the original issue price of $62.22 per share by the conversion price which is initially $62.22 . In the event that after the Fifth Anniversary Board of Directors recommends to the Company’s stockholders a sale of the company, but the Company’s stockholders do not approve the recommended sale, then the conversion price would be reduced to $52.65 . Additionally, if there was a failure of the stockholders to approve certain other actions to facilitate an initial public offering of the company’s Common Stock as well as a failure to approve a sale of the Company recommended by the Board of Directors, then the conversion price would be $47.86 . The conversion price is also subject to adj ustments on a broad-based, weighted-average basis upon the issuance of shares of common stock or certain equivalent securities at a price per share less than conversion price of $62.22 o r as then adjusted to date . Mandatory conversion of the Series A Preferred Stock to Common Stock will occur immediately prior to the closing of any firm-commitment, underwritten public offering of the Company in which the aggregate proceeds to the Company exceed $200.0 million, before deduction of underwriters’ discounts and commissions, provided that the Common Stock is then listed on the New York Stock Exchange, its NYSE Mkt or the Nasdaq Stock Market (or any successor exchange) and provided that the Company sells on a primary basis in such offering at least certain required amounts of shares. All outstanding Series A Preferred Stock, accrued and unpaid dividends accrued on such shares, or, in the event that the public offering occurs before the Firth Anniversary, dividends that would have accrued during the period from the date of issuance through the Fifth Anniversary, as well as dividends declared and unpaid would be converted at the effective conversion price automatically. Or, all outstanding shares of Series A Preferred Stock, plus accrued and unpaid dividends, and dividends declared and unpaid will automatically be converted into shares of Common Stock upon written notice delivered to the Company by the holders of at least a majority of the then outstanding shares of Series A Preferred Stock. Voting Rights . Each holder of outstanding shares of Series A Preferred Stock is entitled to vote with the holders of outstanding shares of Common Stock, voting together as a single class, with respect to any and all matters presented to the stockholders of the Company. Each outstanding share of Series A Preferred Stock is entitled to a number of votes equal to the number of shares of Common Stock into which it is convertible. In addition, the Company may not take certain actions without first having obtained the affirmative vote or waiver of the holders of a majority of the outstanding shares of Series A Preferred Stock. These actions include, among other items, conducting certain liquidation events, entering into new lines of business, entering into agreements for certain acquisitions, joint ventures or investments involving amounts greater than $100.0 million and entering into agreements for certain firm, fixed-price or lump-sum design-build or EPC contracts. In addition, among other things the Company is limited in certain additional amounts it may borrow, additional shares of certain securities that it may issue and the amounts of capital stock it can repurchase in excess of pre-approved amounts, in each case, without further approval from the holders of the Series A Preferred Stock. Redemption. The Company may redeem all the shares of Series A Preferred Stock (and not fewer than all shares of Series A Preferred Stock) in one installment commencing at any time on or after June 24, 2018. The aggregate redemption price for the shares of Series A Preferred Stock will be equal to the greater of (i) certain guaranteed minimum prices of up to an aggregate of $600.0 million, and (ii) the fair value of the shares, as determined by a third-party appraisal, plus accrued and unpaid dividends, and any other dividends declared and unpaid on such shares. The Series A Preferred Stock is not redeemable upon the election of the holders of Series A Preferred Stock.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 25, 2015
Earnings Per Share
Earnings Per Share	(5) Earnings Per Share Basic earnings per share (“EPS”) is calculated using the weighted-average number of common shares outstanding during the period and income available to common stockholders, which is calculated by deducting the dividends accumulated for the period on cumulative preferred stock (whether or not earned) and income allocated to preferred stockholders as calculated under the two-class method. The Company considers all series of the convertible preferred stock to be participating securities as the holders of the preferred stock are entitled contractually to receive a cumulative dividend. Diluted EPS is computed by giving effect to all potential shares of common stock including common stock issuable upon conversion of the convertible preferred stock, the related convertible dividends for the aggregate five year contractual obligation, and stock options. When calculating diluted EPS under the two-class method, the preferred stock dividends for convertible preferred stock are not deducted in the calculation for income available to common stockholders. Diluted EPS is computed by deducting income allocated to preferred stockholders based on the dilutive effect of our convertible preferred shares and weighted-average common stock and common stock equivalents outstanding. The denominator is calculated by using the weighted-average number of common shares and common stock equivalents outstanding during the period, assuming conversion at the beginning of the period or at the time of issuance if later. If outstanding preferred shares and accrued dividends were converted as of September 25, 2015 , the result would be equivalent to 4,122,11 3 common shares. Common stock equivalents are only included in the diluted EPS calculation when their effect is dilutive. Reconciliations of basic and diluted EPS (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 25, September 30, September 25, September 30, 2015 2014 2015 2014 Numerator - basic: Net income (loss) attributable to CH2M Less: income allocated to preferred stockholders - basic — — Less: accrued dividends attributable to preferred stockholders — — Income available to common stockholders - basic $ $ $ $ Numerator - diluted: Net income (loss) attributable to CH2M Less: income allocated to preferred stockholders - diluted — — Income available to common stockholders - diluted $ $ $ $ Denominators: Weighted - average common shares outstanding - basic Dilutive effect of common stock equivalents — — Diluted adjusted weighted-average common shares outstanding, assuming conversion of common stock equivalents Basic net income per common share $ $ $ $ Diluted net income per common share $ $ $ $ For the three and nine months ended September 25, 2015 and September 30, 2014, options to purchase 1.0 million and 0.5 million shares of common stock , respectively, were excluded from the dilutive EPS calculation as they were antidilutive.

Variable Interest Entities and

Variable Interest Entities and Equity Method Investments	9 Months Ended
	Sep. 25, 2015
Variable Interest Entities and Equity Method Investments
Variable Interest Entities and Equity Method Investments	(6) Variable Interest Entities and Equity Method Investments We routinely enter into teaming arrangements, in the form of joint ventures, to perform projects for our clients. Such arrangements are customary in the engineering and construction industry and generally are project specific. The arrangements facilitate the completion of projects that are jointly contracted with our partners. These arrangements are formed to leverage the skills of the respective partners and include consulting, construction, design, design-build, program management and operations and maintenance contracts. The assets of a joint venture are restricted for use only for the particular joint venture and are not available for general operations of the Company. Our risk of loss on these arrangements is usually shared with our partners. The liability of each partner is usually joint and several, which means that each partner may become liable for the entire risk of loss on the project. Furthermore, on some of our projects, CH2M has granted guarantees which may encumber both our contracting subsidiary company and CH2M for the entire risk of loss on the project. Our financial statements include the accounts of our joint ventures when the joint ventures are variable interest entities (“VIE”) and we are the primary beneficiary or those joint ventures that are not VIEs yet we have a controlling interest. We perform a qualitative assessment to determine whether our company is the primary beneficiary once an entity is identified as a VIE. A qualitative assessment begins with an understanding of the nature of the risks associated with the entity as well as the nature of the entity’s activities including terms of the contracts entered into by the entity, ownership interests issued by the entity and how they were marketed, and the parties involved in the design of the entity. All of the variable interests held by parties involved with the VIE are identified and a determination is made of which activities are most significant to the economic performance of the entity and which variable interest holder has the power to direct those activities. Most of the VIEs with which our Company is involved have relatively few variable interests and are primarily related to our equity investments, subordinated financial support, and subcontracting arrangements. We consolidate those VIEs in which we have both the power to direct the activities of the VIE that most significantly impact the VIEs economic performance and the obligation to absorb losses or the right to receive the benefits from the VIE that could potentially be significant to the VIE. As of September 25, 2015 and December 31, 2014 , total assets of VIEs that were consolidated were $91.1 million and $99.9 million, respectively, and liabilities were $198.8 million and $344.8 million, respectively. These assets and liabilities consist almost entirely of working capital accounts associated with the performance of single contracts. In determining whether we have a controlling interest in a joint venture that is not a VIE and the requirement to consolidate the accounts of the entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partnership/members. We held investments in unconsolidated joint ventures that are not VIEs of $ 89.4 million and $ 94.3 million at September 25, 2015 and December 31, 2014, respectively. Our proportionate share of net income or loss is included as equity in earnings of joint ventures and affiliated companies in the consolidated statements of operations. In general, the equity investment in our unconsolidated affiliates is equal to our current equity investment plus our portion of the entities’ undistributed earnings. We provide certain services, including engineering, construction management and computer and telecommunications support, to these unconsolidated entities. These services are billed to the joint ventures in accordance with the provisions of the agreements. As of September 25, 2015 and December 31, 2014 , the total assets of VIEs that were not consolidated were $382.5 million and $355.5 million, respectively, and total liabilities were $291.7 million and $282.7 million, respectively. These assets and liabilities consist almost entirely of working capital accounts associated with the performance of single contracts. The maximum exposure to losses is limited to the funding of any future losses incurred by those entities under their respective contracts with the project company.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 25, 2015
Acquisitions
Acquisitions	(7) Acquisitions On April 4, 2014, we acquired certain agreed upon assets and liabilities of TERA Environmental Consultants (“TERA”) for consideration of $119.6 million. TERA was an employee-owned environmental consulting firm headquartered in Canada specializing in environmental assessment, planning, siting, permitting, licensing, and related services for the pipeline, electrical transmission, and oil and gas industries. TERA’s operations are reported in the consolidated financial statements within the Environment and Nuclear business group and generated approximately $22.6 million of revenue and $ 4.3 million of operating income for the three month period ended September 25, 2015 and approximately $ 58.5 million of revenue and $ 8.7 million of operating income for the nine months ended September 25, 2015 . TERA operations generated approximately $ 35.6 million of revenue and $ 5.8 million of operating income for the three months ended September 30, 2014 and approximately $54.4 million of revenue and $ 7.4 million of operating income for the nine months ended September 30, 2014 .

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 25, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets	(8) Goodwill and Intangible Assets The following table presents the changes in goodwill: ($ in thousands) Goodwill Balance at December 31, 2014 $ Foreign currency translation Balance at September 25, 2015 $ Intangible assets with finite lives consist of the following: Accumulated Net finite-lived ($ in thousands) Cost Amortization intangible assets September 25, 2015 Contracted backlog $ $ $ Customer relationships Tradename Total finite-lived intangible assets $ $ $ December 31, 2014 Contracted backlog $ $ $ Customer relationships Tradename Total finite-lived intangible assets $ $ $ All intangible assets are being amortized over their expected lives of between two year and ten years. The amortization expense reflected in the consolidated statements of operations for the three months ended September 25, 2015 and September 30, 2014 totaled $6.2 million and $15.3 million, respectively, and $19.7 million and $36.0 million for the nine months ended September 25, 2015 and September 30, 2014 , respectively. All intangible assets are expected to be fully amortized in 2024. For the three and nine months ended September 30, 2014, we recorded a goodwill impairment charge of $64.2 million, of which $36.4 million related to our Power business group and $27.8 million related to the i ndustrial and advanced technology business and urban programs business within our Industrial and Urban Environments business group. Additionally, we identified an impairment in our tradename intangibles of $9.1 million related to our Power business group.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 25, 2015
Property, Plant and Equipment
Property, Plant and Equipment	(9) Property, Plant and Equipment Property, plant and equipment consists of the following: September 25, December 31, ($ in thousands) 2015 2014 Land $ $ Building and land improvements Furniture and fixtures Computer and office equipment Field equipment Leasehold improvements Less: Accumulated depreciation Net property, plant and equipment $ $ Depreciation expense reflected in the consolidated statements of operations was $11.1 million and $11.1 million for the three months ended September 25, 2015 and September 30, 2014 , respectively, and $35.9 million and $31.3 million for the nine months ended September 25, 2015 and September 30, 2014 , respectively. During the nine months ended September 25, 2015, we sold propert ies in the northwestern United States and in Canada, which had a combined net book value of $15.2 million at the time of disposal. In addition, during the nine months ended September 25, 2015, we sold office building s in our Europe region and in the northwestern United States with a combined net book value of $18.7 million at the time of disposal. Both of these office buildings were subsequently leased back from the new owner under an operating lease arrangement.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 25, 2015
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(10) Fair Value of Financial Instruments Cash and cash equivalents, client accounts receivables, unbilled revenue, accounts payable and accrued subcontractor costs and billings in excess of revenue are carried at cost, which approximates fair value due to their short maturities. The fair value of long-term debt, including the current portion, is estimated based on Level 2 inputs, except the amount outstanding on our revolving credit facility for which the carrying value approximates fair value. Fair value is determined by discounting future cash flows using interest rates available for issues with similar terms and average maturities. The estimated fair values of our financial instruments where carrying values do not approximate fair value are as follows: September 25, 2015 December 31, 2014 Carrying Fair Carrying Fair ($ in thousands) Amount Value Amount Value Mortgage notes payable $ $ $ $ Equipment financing We primarily enter into derivative financial instruments to mitigate exposures to changing foreign currency exchange rates. These currency derivative instruments are carried on the balance sheet at fair value and are based upon Level 2 inputs including third-party quotes. At September 25, 2015 , we had forward foreign exchange contracts on major world currencies with varying durations, none of which extend beyond one year. As of September 25, 2015 , we had $0.2 million of derivative assets, and the changes in derivative fair values resulted in a realized and unrealized losses of $ 6.2 million and $10.5 million for the three and nine months ended September 25, 2015 , respectively. As of December 31, 2014 , derivative assets and liabilities recorded were insignificant, and the periodic changes in the fair value of derivatives recorded in earnings were insignificant for the three and nine months ended September 30, 2014.

Line of Credit and Long-Term De

Line of Credit and Long-Term Debt	9 Months Ended
	Sep. 25, 2015
Line of Credit and Long-Term Debt
Line of Credit and Long-Term Debt	(11) Line of Credit and Long-Term Debt On March 30, 2015, we entered into the Second Amendment to our Amended and Restated Credit Agreement (“Credit Agreement”). The Credit Agreement provides for an unsecured revolving Credit Facility of $1.1 billion (“Credit Facility”) which matures on March 28, 2019 and retroactively amended the maximum consolidated leverage ratio effective January 1, 2015. Under the terms of the Credit Agreement, we may be able to invite existing and new lenders to increase the amount available to be borrowed under the agreement by up to $350.0 million. The Credit Agreement has a subfacility for the issuance of standby letters of credit in a face amount up to $750.0 million and a subfacility up to $300.0 million for multicurrency borrowings. Additionally, as discussed in Note 4, the Company sold and issued an aggregate of 3,214,400 shares of Series A Preferred Stock for an aggregate purchase price of $200.0 million in a private placement to a subsidiary owned by investment funds affiliated with Apollo on June 24, 2015. As a result of the successful completion of our preferred stock offering, certain terms and conditions of our Credit Agreement as of September 25, 2015 are as follows: · The definition of consolidated adjusted EBITDA allows the add back of cash restructuring charges in 2015 of up to $40.0 million plus a carryover of $9.6 million for cash restructuring charges incurred in year 2014. · The maximum consolidated leverage ratio is 3.25x for the remainder of 2015 and 3.00x for 2016 and beyond. · Certain repurchases by CH2M of its common stock and preferred stock and payment of common stock dividends are limited to $120.0 million in 2015. For 2016 and beyond, there is no limit on repurchases of common stock offered for sale on the internal market, and there is a $100.0 million limit for other repurchases of common stock, redemption of preferred stock and common dividends, subject to pro forma leverage of 2.75x . · Up to 50% of the proceeds from asset sales can be utilized to repurchase common or preferred stock, subject to pro forma financial covenant compliance. The Credit Agreement contains customary representations and warranties and conditions to borrowing including customary affirmative and negative covenants, which include covenants that limit or restrict our ability to incur indebtedness and other obligations, grant liens to secure their obligations, make investments, merge or consolidate, and dispose of assets outside the ordinary course of business, in each case subject to customary exceptions for credit facilities of this size and type. As of September 25, 2015 , we were in compliance with the covenants required by the Credit Agreement. At September 25, 2015 and December 31, 2014, $ 259.6 million and $ 492.6 million in borrowings were outstanding on the Credit Facility, respectively. The average rate of interest charged on that balance was 1.73% as of September 25, 2015 . At September 25, 2015 and December 31, 2014 , company-wide issued and outstanding letters of credit and bank guarantee facilities were $ 153. 8 million and $199.3 million, respectively. The remaining unused borrowing capacity under the Credit Facility was $555.3 million as of September 25, 2015 . Our nonrecourse and other long-term debt consist of the following: September 25, December 31, ($ in thousands) 2015 2014 Revolving credit facility, average rate of interest of 1.734% $ $ Mortgage note payable in monthly installments due December 2015, secured by real estate. This notes bears interest at 6.59%. Equipment financing, due in monthly installments to September 2021, secured by equipment. These notes bear interest ranging from 0.22% to 8.84% Other notes payable Total debt $ $ Less: current portion of debt Total long-term portion of debt $ $

Income Taxes

Income Taxes	9 Months Ended
	Sep. 25, 2015
Income Taxes
Income Taxes	(12) Income Taxes After adjusting for the impact of income attributable to noncontrolling interest, the effective tax rate on income attributable to CH2M for the three month period ended September 25, 2015 was 24.1% compared to 16.4% for the loss for the same period in the prior year. The effective tax rate on income attributable to CH2M for the nine months ended September 25, 2015 was 28.3% com pa red to 16.7% for the loss in the same period in the prior year. The 2015 effective tax rate for the three and nine month periods were higher than the effective tax rates in the same periods of 2014 primarily due to the negative impacts of certain 2014 nondeductible expenses such as goodwill impairment, the lack of a domestic production activities deduction, and other items which did not repeat in 2015. In addition, for the three months ended September 25, 2015, we recognized a positive impact on our effective tax rate from the settlement of the IRS exams for the years 2009 and 2010. Our effective tax rate continues to be negatively impacted by the effect of state income taxes, non-deductible foreign net operating losses, and the disallowed portions of meals and entertainment expenses. Estimated undistributed earnings of our foreign subsidiaries amounted to approximately $345.4 million and $331.2 million at September 25, 2015 and December 31, 2014 , respectively. These earnings are considered to be permanently reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been made. Determining the tax liability that would arise if these earnings were repatriated is not practical . As of September 25, 2015 and December 31, 2014 , we had $21.9 million and $34.2 million, respectively, recorded as a liability for uncertain tax positions. We recognize interest and penalties related to unrecognized tax benefits in income tax expense. Included in the amounts discussed above are approximately $4.7 million and $7.0 million of accrued interest and penalties related to uncertain tax positions, as of September 25, 2015 and December 31, 2014 , respectively. We file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world, including such major jurisdictions as the United States, United Kingdom and Canada. With few exceptions, we are no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities in major tax jurisdictions for years before 2007.

Restructuring and Related Charg

Restructuring and Related Charges	9 Months Ended
	Sep. 25, 2015
Restructuring and Related Charges
Restructuring and Related Activities Disclosure [Text Block]	(13) Restructuring and Related Charges In September 2014, we commenced certain restructuring activities in order to achieve important business objectives, including reducing overhead costs, enhancing client service, improving efficiency, reducing risk, and creating more opportunity for profitable growth. These restructuring activities include such items as a voluntary retirement program, workforce reductions, facilities consolidations and evaluation of certain lines of business. During the three and nine months ended September 25, 2015, we incurred $8.2 million and $ 25.8 million of costs for these restructuring activities, respectively, which have been included in general and administration expense on the consolidated statements of operations. During the three and nine months ended September 30, 2014, we incurred $3.1 million for restructuring activities related primarily to employee severance and termination benefits. Overall, as of September 25, 2015 , we have incurred aggregated costs of $96.2 million for restructuring activities, and we expect to incur up to approximately $25.0 million in additional restructuring charges during the remainder of 2015 related to these activities. The changes in the provision for restructuring activities for the nine months ended September 25, 2015 are as follows: Employee Severance and Termination ($ in thousands) Benefits Facilities Cost Other Total Balance at December 31, 2014 $ $ $ $ Provision Cash payments Non-cash settlements — — Balance at September 25, 2015 $ — $ $ — $ The accruals for facilities costs will be paid over the remaining term of the leases which we have exited and therefore will extend through 2028.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 25, 2015
Commitments and Contingencies
Commitments and Contingencies	(14) Commitments and Contingencies We are party to various legal actions arising in the normal course of business. Because a large portion of our business comes from U.S. federal, state and municipal sources, our procurement and certain other practices at times are subject to review and investigation by various agencies of the U.S. government and state attorneys’ offices. Such state and U.S. government investigations, whether relating to government contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments, fines or penalties or could lead to suspension or debarment from future U.S. government contracting. These investigations often take years to complete and many result in no adverse action or alternatively could result in settlement. Damages assessed in connection with and the cost of defending any such actions could be substantial. While the outcomes of pending proceedings and legal actions are often difficult to predict, management believes that proceedings and legal actions currently pending would not result in a material adverse effect on our results of operations or financial condition even if the final outcome is adverse to our company. Many claims that are currently pending against us are covered by our professional liability insurance. Management estimates that the levels of insurance coverage (after retentions and deductibles) are generally adequate to cover our liabilities, if any, with regard to such claims. Any amounts that are probable of payment are accrued when such amounts are estimable. As of September 25, 2015 and December 31, 2014 , accruals for potential estimated claim liabilities were $14.2 million and $16.3 million, respectively. In 2010, we were notified that the U.S. Attorney’s Office for the Eastern District of Washington was investigating overtime practices in connection with the U.S. Department of Energy Hanford tank farms management contract that we transitioned to another contractor in 2008. In 2011 and 2012, eight former CH2M Hanford Group (“CH2M Subsidiary”) employees pleaded guilty to felony charges related to time card fraud committed while working on the Hanford Tank Farm Project. As part of its investigation, the U.S. Attorney’s Office raised the possibility of violations of the civil False Claims Act and criminal charges for possible violations of federal criminal statutes arising from CH2M Subsidiary’s overtime practices on the project. In September 2012, the government intervened in a civil False Claims Act case filed in the District Court for the Eastern District of Washington by one of the employees who plead guilty to time card fraud. In March 2013, we entered into a Non-Prosecution Agreement (“NPA”) concluding the criminal investigation so long as we comply with the terms of the NPA. The NPA requires us to comply with ongoing requirements for three years after the effective date. By a separate agreement, we obtained dismissal of the civil False Claims Act case. We paid $18.5 million in total under both agreements. As a result, no criminal charges were brought against CH2M Subsidiary or any CH2M entities, and the civil False Claims Act case was dismissed.

Summary of Business and Signi21

Summary of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 25, 2015
Summary of Business and Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and according to instructions to Form 10-Q and the provisions of Article 10 of Regulation S-X that are applicable to interim financial statements. Accordingly, these statements do not include all of the information required by GAAP or the Securities and Exchange Commission (“SEC”) rules and regulations for annual audited financial statements. The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and assumptions have been prepared on the basis of the most current and best available information. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited interim consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. The results of operations for any interim period are not necessarily indicative of results for the full year. These unaudited interim consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014 .
Change in Fiscal Year End	Change in Fiscal Year End On March 30, 2015, in order to accommodate our financial accounting systems and the timely gathering and reporting of financial information, we changed our reporting period from a calendar year ending on December 31 of each year to a fiscal year ending on the last Friday of December of each year. Our fiscal quarters will also end on the last Friday of March, June, and September. This change has been retroactively applied as if it was adopted as of January 1, 2015. The change in fiscal year-end did not have a material effect on the comparability of the periods presented.
Revenue Recognition	Revenue Recognition We earn revenue from different types of services performed under various types of contracts, including cost-plus, fixed-price and time-and-materials. We evaluate contractual arrangements to determine how to recognize revenue. We primarily perform engineering and construction related services and recognize revenue for these contracts on the percentage-of-completion method where progress towards completion is measured by relating the actual cost of work performed to date to the current estimated total cost of the respective contract. In making such estimates, judgments are required to evaluate potential variances in schedule, the cost of materials and labor, productivity, liability claims, contract disputes, and achievement of contract performance standards. We record the cumulative effect of changes in contract revenue and cost at completion in the period in which the changed estimates are determined to be reliably estimable. Below is a description of the basic types of contracts from which we may earn revenue: Cost-Plus Contracts . Cost-plus contracts can be cost plus a fixed fee or rate, or cost plus an award fee. Under these types of contracts, we charge our clients for our costs, including both direct and indirect costs, with an additional fixed negotiated fee or award fee. We generally recognize revenue based on the actual labor costs and non-labor costs we incur, plus the portion of the fixed fee or award fee we have earned to date. Included in the total contract value for cost-plus fee arrangements is the portion of the fee for which receipt is determined to be probable. Award fees are influenced by the achievement of contract milestones, cost savings and other factors. Fixed-Price Contracts . Under fixed-price contracts, our clients pay us an agreed amount negotiated in advance for a specified scope of work. For engineering and construction contracts, we recognize revenue on fixed-price contracts using the percentage-of-completion method where direct costs incurred to date are compared to total projected direct costs at contract completion. Prior to completion, our recognized profit margins on any fixed-price contract depend on the accuracy of our estimates and will increase to the extent that our actual costs are below the original estimated amounts. Conversely, if our costs exceed these estimates, our profit margins will decrease, and we may realize a loss on a project. Time-and-Materials Contracts . Under our time-and-materials contracts, we negotiate hourly billing rates and charge our clients based on the actual time that we expend on a project. In addition, clients reimburse us for our actual out of pocket costs of materials and other direct expenditures that we incur in connection with our performance under the contract. Our profit margins on time-and-materials contracts fluctuate based on actual labor and overhead costs that we directly charge or allocate to contracts compared with the negotiated billing rate and markup on other direct costs. Some of our time-and-materials contracts are subject to maximum contract values, and accordingly, revenue under these contracts is recognized under the percentage-of-completion method where costs incurred to date are compared to total projected costs at contract completion. Revenue on contracts that is not subject to maximum contract values is recognized based on the actual number of hours we spend on the projects plus any actual out of pocket costs of materials and other direct expenditures that we incur on the projects. Operations and Maintenance Contracts . A portion of our contracts are operations and maintenance type contracts. Revenue is recognized on operations and maintenance contracts on a straight-line basis over the life of the contract once we have an arrangement, service has begun, the price is fixed or determinable and collectability is reasonably assured. For all contract types noted above, change orders are included in total estimated contract revenue when it is probable that the change order will result in an addition to contract value and when the change order can be estimated. Management evaluates when a change order is probable based upon its experience in negotiating change orders, the customer’s written approval of such changes or separate documentation of change order costs that are identifiable. Losses on construction and engineering contracts in process are recognized in their entirety when the loss becomes evident and the amount of loss can be reasonably estimated.
Unbilled Revenue and Billings in Excess of Revenue	Unbilled Revenue and Billings in Excess of Revenue Unbilled revenue represents the excess of contract revenue recognized over billings to date on contracts in process. These amounts become billable according to the contract terms, which usually consider the passage of time, achievement of certain milestones or completion of the project. Billings in excess of revenue represent the excess of billings to date, per the contract terms, over revenue recognized on contracts in process. A significant portion of our billings in excess balance relates to excess billings on design-build projects. These projects often require us to order significant project materials and equipment in advance, and we request payment in advance from our clients to cover these costs. As the projects near completion and our suppliers complete the construction of these components and we complete the installation, the billings in excess balance declines.
Fair Value Measurements	Fair Value Measurements Fair value represents the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Assets and liabilities are valued based upon observable and non-observable inputs. Valuations using Level 1 inputs are based on unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. Level 2 inputs utilize significant other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly; and valuations using Level 3 inputs are based on significant unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. There were no significant transfers between levels during the quarters ended September 25, 2015 and September 30, 2014 .
Restructuring and Related Charges	Restructuring Related Costs We account for costs associated with restructuring activities in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 420, Exit or Disposal Cost Obligations . An exit activity includes but is not limited to a restructuring, such as a sale or termination of a line of business, the closure of business activities in a particular location, the relocation of business activities from one location to another, changes in management structure, and a fundamental reorganization that affects the nature and focus of operations. The Company recognizes a liability and the related expense for restructuring costs when the liability is incurred and can be measured. Restructuring accruals are based upon management estimates at the time they are recorded and can change depending upon changes in facts and circumstances subsequent to the date the original liability was recorded. Nonretirement postemployment benefits offered as special termination benefits to employees, such as a voluntary early retirement program, are recognized as a liability and a loss when the employee accepts the offer and the amount can be reasonably estimated in accordance with ASC Topic 712, Compensation-Nonretirement Postemployment Benefits .
Goodwill	Goodwill Goodwill represents the excess of costs over fair value of the assets of businesses we have acquired. Goodwill acquired in a purchase business combination is not amortized, but instead, is tested for impairment at least annually in accordance with the provisions of ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), as amended under Accounting Standards Update 2011-08 (“ASU 2011-08”). Upon the occurrence of certain triggering events, we are also required to test for impairment at dates other than the annual impairment testing date. In performing the impairment test, we evaluate our goodwill at the reporting unit level. Under the guidance of ASC 350, we have the option to assess either quantitative or qualitative factors to determine whether it is more likely than not that the fair values of our reporting units are less than their carrying amounts. If after assessing the totality of events or circumstances, we determine that it is not more likely than not that the fair values of our reporting units are less than their carrying amounts, then the next step of the impairment test is unnecessary. If we conclude otherwise, then we are required to test goodwill for impairment under the two-step process. The two-step process involves comparing the estimated fair value of each reporting unit to the unit’s carrying value, including goodwill. If the carrying value of a reporting unit does not exceed its fair value, the goodwill of the reporting unit is not considered impaired; therefore, the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, we would then perform a second step to measure the amount of goodwill impairment loss to be recorded. We determine the fair value of our reporting units using a combination of the income approach, the market approach, and the cost approach. The income approach calculates the present value of future cash flows based on assumptions and estimates derived from a review of our expected revenue growth rates, profit margins, business plans, cost of capital and tax rates for the reporting units. Our market based valuation method estimates the fair value of our reporting units by the application of a multiple to our estimate of a cash flow metric for each business unit. The cost approach estimates the fair value of a reporting unit as the fair value of its assets net of the fair value of its liabilities.
Intangible Assets	Intangible Assets We may acquire other intangible assets in business combinations. Intangible assets are stated at fair value as of the date they are acquired in a business combination. We amortize intangible assets with finite lives on a straight-line basis over their expected useful lives, currently up to ten years. We test our intangible assets for impairment in the period in which a triggering event or change in circumstance indicates that the carrying amount of the intangible asset may not be recoverable. If the carrying amount of the intangible asset exceeds the fair value, an impairment loss will be recognized in the amount of the excess. We determine the fair value of the intangible assets using a discounted cash flow approach.
Derivative instruments	Derivative Instruments We primarily enter into derivative financial instruments to mitigate exposures to changing foreign currency exchange rates on our earnings and cash flows . We are primarily subject to this risk on long-term projects whereby the currency being paid by our client differs from the currency in which we incurred our costs, as well as intercompany trade balances among entities with differing currencies. We do not enter into derivative transactions for speculative or trading purposes. All derivatives are carried at fair value on the consolidated balance sheets in other receivables or accounts payable and accrued subcontractor costs as applicable. The periodic change in the fair value of the derivative instruments is recognized in earnings within general and administrative expense.
Retirement and Tax-Deferred Savings Plan	Retirement and Tax-Deferred Savings Plan The Retirement and Tax Deferred Savings Plan is a retirement plan that includes a cash or deferred arrangement that is intended to qualify under Sections 401(a) and 401(k) of the Internal Revenue Code and provides benefits to eligible employees upon retirement. In September 2012, our Board of Directors approved the CH2M Companies, Ltd. Amended and Restated 401(k) Plan which became effective January 1, 2013 (“401(k) Plan”). The 401(k) Plan allows for matching contributions up to 6% of employee’s base compensation, although specific subsidiaries may have different limits on employer matching. The matching contributions may be made in both cash and/or stock. Expenses related to matching contributions made in common stock for the 401(k) Plan for the three and nine months ended September 25, 2015 were $3.8 million and $16.3 million, respectively, as compared to $13.3 million and $37.0 million for the three and nine months ended September 30, 2014 , respectively.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-04, Compensation – Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets . ASU 2015-04 provides a practical expedient for entities with defined benefit plan assets and obligations whose fiscal years and interim periods do not coincide with a month-end. The ASU allows these entities to use the month-end that is closest to the entity’s fiscal year-end or interim period-end for measuring the defined benefit plan assets and obligations if the practical expedient is applied consistently to all plans and each year. However, if a contribution or significant event (such as a plan amendment, settlement, or curtailment that calls for a remeasurement in accordance with existing requirements) occurs between the month-end date used to measure defined benefit plan assets and obligations and an entity’s fiscal year-end or interim period-end, the entity should adjust the measurement of defined benefit plan assets and obligations to reflect the effects of those contributions or significant events. Entities are required to disclose the accounting policy election and the date used to measure the defined benefit plan assets and obligations. ASU 2015-04 will be effective for financial statements issued for fiscal years beginning after December 15, 2015, with earlier election permitted, and the application of the amendment should be applied prospectively. CH2M will early elect this ASU for our fiscal year ending December 25, 2015. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . ASU 2015-02 provides updated consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. This ASU requires that all legal entities be subject to reevaluation under the revised consolidation model. ASU 2015-02 will be effective for annual and interim periods beginning after December 15, 2015. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The ASU requires that management evaluate for each annual and interim reporting period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued. If there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern, additional disclosures are required, even if the substantial doubt is alleviated as a result of consideration of management’s plans. This ASU is effective for annual and interim periods beginning after December 15, 2016, and early adoption is permitted. We do not expect the adoption of this standard to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This ASU is a comprehensive new revenue recognition model that is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU also requires additional quantitative and qualitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB has deferred the effective date of this ASU for reporting periods beginning after December 15, 2017. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. CH2M is currently evaluating the impact of this ASU and the transition alternatives on its financial position and results of operations.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 25, 2015
Segment Information
Schedule of financial information related to segments	Three Months Ended September 25, 2015 Three Months Ended September 30, 2014 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Environment and Nuclear $ $ $ $ $ $ Industrial and Urban Environments Oil, Gas and Chemicals Transportation Water Power — Total $ $ $ $ $ $ Nine Months Ended September 25, 2015 Nine Months Ended September 30, 2014 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Environment and Nuclear $ $ $ $ $ $ Industrial and Urban Environments Oil, Gas and Chemicals Transportation Water Power — Total $ $ $ $ $ $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 25, 2015
Stockholders' Equity
Schedule of changes in stockholders' equity	The changes in stockholders’ equity for the nine months ended September 25, 2015 are as follows (in thousands): Common Preferred Shares Shares Amount Stockholders’ equity, December 31, 2014 — $ Shares purchased and retired — Shares issued in connection with stock-based compensation and employee benefit plans — Series A Preferred Stock, net of issuance costs Net income attributable to CH2M — — Other comprehensive loss, net of tax — — Income attributable to noncontrolling interests — — Net distributions from noncontrolling interests — — Stockholders’ equity, September 25, 2015 $

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 25, 2015
Earnings Per Share
Summary of reconciliations of basic and diluted EPS	Reconciliations of basic and diluted EPS (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 25, September 30, September 25, September 30, 2015 2014 2015 2014 Numerator - basic: Net income (loss) attributable to CH2M Less: income allocated to preferred stockholders - basic — — Less: accrued dividends attributable to preferred stockholders — — Income available to common stockholders - basic $ $ $ $ Numerator - diluted: Net income (loss) attributable to CH2M Less: income allocated to preferred stockholders - diluted — — Income available to common stockholders - diluted $ $ $ $ Denominators: Weighted - average common shares outstanding - basic Dilutive effect of common stock equivalents — — Diluted adjusted weighted-average common shares outstanding, assuming conversion of common stock equivalents Basic net income per common share $ $ $ $ Diluted net income per common share $ $ $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 25, 2015
Goodwill and Intangible Assets
Schedule of changes in goodwill	($ in thousands) Goodwill Balance at December 31, 2014 $ Foreign currency translation Balance at September 25, 2015 $
Schedule of components of finite-lived intangible assets	Accumulated Net finite-lived ($ in thousands) Cost Amortization intangible assets September 25, 2015 Contracted backlog $ $ $ Customer relationships Tradename Total finite-lived intangible assets $ $ $ December 31, 2014 Contracted backlog $ $ $ Customer relationships Tradename Total finite-lived intangible assets $ $ $

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 25, 2015
Property, Plant and Equipment
Schedule of property, plant and equipment	September 25, December 31, ($ in thousands) 2015 2014 Land $ $ Building and land improvements Furniture and fixtures Computer and office equipment Field equipment Leasehold improvements Less: Accumulated depreciation Net property, plant and equipment $ $

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 25, 2015
Fair Value of Financial Instruments
Schedule of estimated fair values of financial instruments where carrying values do not approximate fair value	September 25, 2015 December 31, 2014 Carrying Fair Carrying Fair ($ in thousands) Amount Value Amount Value Mortgage notes payable $ $ $ $ Equipment financing

Line of Credit and Long-Term 28

Line of Credit and Long-Term Debt (Tables)	9 Months Ended
	Sep. 25, 2015
Line of Credit and Long-Term Debt
Schedule of nonrecourse and other long-term debt	September 25, December 31, ($ in thousands) 2015 2014 Revolving credit facility, average rate of interest of 1.734% $ $ Mortgage note payable in monthly installments due December 2015, secured by real estate. This notes bears interest at 6.59%. Equipment financing, due in monthly installments to September 2021, secured by equipment. These notes bear interest ranging from 0.22% to 8.84% Other notes payable Total debt $ $ Less: current portion of debt Total long-term portion of debt $ $

Summary of Business and Signi29

Summary of Business and Significant Accounting Policies (Details)	9 Months Ended
	Sep. 25, 2015
Maximum
Intangible assets
Useful lives of intangible assets	10 years

Summary of Business and Signi30

Summary of Business and Significant Accounting Policies Matching Contributions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014
Retirement and Tax-Deferred Savings Plan
Maximum employer match to the 401(k) Plan after amendment (as a percent)			6.00%
Expenses related to matching contributions and defined contributions made in common stock for the 401(k) Plan	$ 3.8	$ 13.3	$ 16.3	$ 37

Changes in Project-Related Es31

Changes in Project-Related Estimates (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014	Dec. 31, 2014
Fixed Price Contract | Southwestern United States
Changes in project-related estimates
Charge to operations due to changes in cost estimates	$ 0	$ 38.7	$ 53.6	$ 38.7
Percentage of completion of the project	50.00%		50.00%
Fixed Price Contract | Northeastern United States
Changes in project-related estimates
Charge to operations due to changes in cost estimates			$ 0	61.5
Consortium Contract | Australia
Changes in project-related estimates
Charge to operations due to changes in cost estimates					$ 280
Loss recorded		85		85	140
Reserves for project related losses attributable to the noncontrolling interest	$ 52.6		52.6		91.8
Consortium Contract | Other current liabilities | Australia
Changes in project-related estimates
Reserves for project related losses	$ 143		$ 143		$ 222.4
Corporate Joint Venture [Member] | Consortium Contract | Australia
Changes in project-related estimates
Percentage of completion of the project	65.00%		65.00%
Ownership percentage in the joint venture partnership			50.00%
Total contract value of the project allocated to the joint venture	$ 425		$ 425
Loss recorded		$ 170		$ 170

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 25, 2015USD ($)segment	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment information
Number of reportable operating segments | segment			5
Gross revenue	$ 1,365,877	$ 1,422,537	$ 3,953,911	$ 4,104,434
Equity in earnings	14,890	11,909	36,908	47,086
Operating income (loss)	66,360	(234,903)	136,608	(224,874)
Total assets	2,782,107		2,782,107		$ 2,941,302
Environmental and Nuclear
Segment information
Gross revenue	422,049	482,369	1,177,552	1,254,177
Equity in earnings	9,174	7,628	23,850	30,788
Operating income (loss)	19,846	29,147	58,740	52,488
Industrial and Urban Environments
Segment information
Gross revenue	108,874	134,658	353,923	369,623
Equity in earnings	783	(587)	2,383	738
Operating income (loss)	2,362	(31,018)	9,958	(44,408)
Oil Gas and Chemicals
Segment information
Gross revenue	204,757	229,813	619,837	644,390
Equity in earnings	550	1,172	808	1,598
Operating income (loss)	12,589	2,307	27,401	4,167
Transportation
Segment information
Gross revenue	251,228	237,297	726,901	715,550
Equity in earnings	2,563	1,717	6,579	10,532
Operating income (loss)	8,837	(34,064)	(24,812)	(20,747)
Water
Segment information
Gross revenue	317,765	306,027	943,384	926,745
Equity in earnings	1,820	872	3,288	2,323
Operating income (loss)	21,836	25,036	68,506	69,307
Power
Segment information
Gross revenue	61,204	32,373	132,314	193,949
Equity in earnings		1,107		1,107
Operating income (loss)	$ 890	$ (226,311)	$ (3,186)	$ (285,681)

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, $ in Thousands	Jun. 24, 2015USD ($)shares	May. 27, 2015USD ($)shares	Sep. 25, 2015USD ($)$ / sharesshares	Sep. 30, 2014USD ($)	Sep. 25, 2015USD ($)item$ / sharesshares	Sep. 30, 2014USD ($)	Jun. 22, 2015$ / sharesshares	Dec. 31, 2014$ / sharesshares
Stockholders Equity
Stockholders' equity beginning of period					$ 87,568
Shares purchased and retired					(54,553)
Shares issued in connection with stock-based compensation and employee benefit plans					25,005
Net income attributable to CH2M			$ 41,211	$ (131,242)	80,987	$ (125,884)
Other comprehensive loss, net of tax			(14,708)	(11,339)	(22,318)	(4,391)
Income attributable to noncontrolling interests			9,060	$ (82,495)	12,423	$ (84,572)
Net distributions from noncontrolling interests					56,136
Stockholders' equity end of period			$ 376,925		$ 376,925
Preferred stock, shares authorized | shares			50,000,000		50,000,000			50,000,000
Preferred stock, par value (in dollars per share) | $ / shares			$ 0.01		$ 0.01			$ 0.01
Proceeds from the issuance of preferred stock, net of issuance costs					$ 191,677
Common Shares
Stockholders Equity
Stockholders' equity, beginning of period, (in shares) | shares					27,324,000
Shares purchased and retired (in shares) | shares					(1,113,000)
Shares issued in connection with stock-based compensation and employee benefit plans (in shares) | shares					509,000
Stockholders' equity, ending balance (in shares) | shares			26,720,000		26,720,000
Series A Preferred Stock
Stockholders Equity
Series A Preferred Stock, net of issuance costs (in shares) | shares	3,214,400				3,214,000
Stockholders' equity, ending balance (in shares) | shares			3,214,000		3,214,000
Stock sold and issued					$ 191,677
Preferred stock, shares authorized | shares			10,000,000		10,000,000		10,000,000	10,000,000
Aggregate purchase price of preferred stock	$ 200,000
Original issue price of share | $ / shares							$ 62.22
Annual dividend rate			5.00%		5.00%
Conversion price | $ / shares					$ 62.22
Authorized amount for investment			$ 100,000		$ 100,000
Series A Preferred Stock | Sale Recommended Stockholders Not Approve
Stockholders Equity
Conversion price | $ / shares					$ 52.65
Series A Preferred Stock | Recommended Sale And Certain Other Actions To Facilitate Initial Public Offering Not Approved
Stockholders Equity
Conversion price | $ / shares					$ 47.86
Series A Preferred Stock | Maximum
Stockholders Equity
Annual dividend rate			15.00%		15.00%
Series A Preferred Stock | Minimum
Stockholders Equity
Annual dividend rate			10.00%		10.00%
Threshold for conversion					$ 200,000
Series A Preferred Stock | Future plan
Stockholders Equity
Number of installments for stock redemption | item					1
Series A Preferred Stock | Future plan | Maximum
Stockholders Equity
Redemption price of preferred stock			$ 600,000		$ 600,000
Series A Preferred Stock | Apollo Global Management, LLC
Stockholders Equity
Series A Preferred Stock, net of issuance costs (in shares) | shares	3,214,400
Aggregate purchase price of preferred stock	$ 200,000
Proceeds from the issuance of preferred stock, net of issuance costs	191,700
Issuance cost	$ 8,300
Series A Preferred Stock | Apollo Global Management, LLC | Future plan
Stockholders Equity
Series A Preferred Stock, net of issuance costs (in shares) | shares		1,607,200
Aggregate purchase price of preferred stock		$ 100,000
Anniversary period of initial closing for additional stock purchase		1 year

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014
Numerator - basic
Period for aggregate contractual obligation			5 years
Net income (loss) attributable to CH2M	$ 41,211	$ (131,242)	$ 80,987	$ (125,884)
Less: income allocated to preferred stockholders - basic	57		38
Less: Accrued dividends attributable to preferred stockholders	2,556		2,556
Net income available to common stockholders - basic	38,598	(131,242)	78,393	(125,884)
Numerator - diluted
Net income (loss) attributable to CH2M	41,211	(131,242)	80,987	(125,884)
Less: income allocated to preferred stockholders - diluted	4,793		3,814
Income available to common stockholders - diluted	$ 36,418	$ (131,242)	$ 77,173	$ (125,884)
Denominator:
Weighted-average common shares outstanding - basic	27,139,832	27,973,502	27,281,219	28,429,394
Dilutive effect of common stock equivalents (in shares)	4,181,000		1,436,000
Diluted adjusted weighted-average common shares outstanding, assuming conversion of common stock equivalents (in shares)	31,321,113	27,973,502	28,716,940	28,429,394
Basic net income per common share (in dollars per share)	$ 1.42	$ (4.69)	$ 2.87	$ (4.43)
Diluted net income per common share (in dollars per share)	$ 1.16	$ (4.69)	$ 2.69	$ (4.43)
Potentially dilutive common stock equivalents not included in the calculation of diluted EPS because to do so would be antidilutive, given the net loss (in shares)	1,000,000	500,000	1,000,000	500,000

Variable Interest Entities an35

Variable Interest Entities and Equity Method Investments (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Dec. 31, 2014
Variable interest entities
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	$ 89,430	$ 94,340
Total assets of VIEs not consolidated	2,782,107	2,941,302
Total liabilities of VIEs not consolidated	2,405,182	2,853,734
Consolidated VIEs
Variable interest entities
Total assets of VIEs consolidated	91,100	99,900
Total liabilities of VIEs consolidated	198,800	344,800
Unconsolidated VIE's
Variable interest entities
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures	89,400	94,300
Total assets of VIEs not consolidated	382,500	355,500
Total liabilities of VIEs not consolidated	$ 291,700	$ 282,700

Acquisitions (Details)

Acquisitions (Details) - TERA Environmental Consultants Member - USD ($) $ in Millions	Apr. 04, 2014	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014
Acquisitions
Revenue		$ 22.6	$ 35.6	$ 58.5	$ 54.4
Operating income		$ 4.3	$ 5.8	$ 8.7	$ 7.4
Business Combination, Consideration Transferred
Total consideration	$ 119.6

Goodwill and Intangible Asset37

Goodwill and Intangible Assets (Details) $ in Thousands	9 Months Ended
	Sep. 25, 2015USD ($)
Changes in goodwill
Balance at December 31, 2014	$ 533,975
Foreign currency translation	(13,124)
Balance at March 27, 2015	$ 520,851

Goodwill and Intangible Asset38

Goodwill and Intangible Assets Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014	Dec. 31, 2014
Finite-lived intangible assets
Cost	$ 283,139		$ 283,139		$ 292,014
Accumulated Amortization	(217,013)		(217,013)		(200,635)
Net finite-lived intangible assets	66,126		66,126		91,379
Amortization expense	6,200	$ 15,300	$ 19,700	$ 36,000
Goodwill impairment loss		64,200		64,200
Minimum
Finite-lived intangible assets
Useful lives of intangible assets			2 years
Maximum
Finite-lived intangible assets
Useful lives of intangible assets			10 years
Power Unit, Energy Market
Finite-lived intangible assets
Goodwill impairment loss		36,400		36,400
Impairment of intangible assets		9,100		9,100
Industrial and Advanced Technology Unit, Facilities and Urban Environments market
Finite-lived intangible assets
Goodwill impairment loss		$ 27,800		$ 27,800
Contracted backlog
Finite-lived intangible assets
Cost	87,574		$ 87,574		89,313
Accumulated Amortization	(87,187)		(87,187)		(84,349)
Net finite-lived intangible assets	387		387		4,964
Customer relationships
Finite-lived intangible assets
Cost	190,950		190,950		197,910
Accumulated Amortization	(125,381)		(125,381)		(111,970)
Net finite-lived intangible assets	65,569		65,569		85,940
Tradename
Finite-lived intangible assets
Cost	4,615		4,615		4,791
Accumulated Amortization	(4,445)		(4,445)		(4,316)
Net finite-lived intangible assets	$ 170		$ 170		$ 475

Property, Plant and Equipment39

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014	Dec. 31, 2014
Property, plant and equipment
Property, plant and equipment, gross	$ 463,935		$ 463,935		$ 526,982
Less: Accumulated depreciation	(259,660)		(259,660)		(268,822)
Net property, plant and equipment	204,275		204,275		258,160
Depreciation expense	11,100	$ 11,100	35,900	$ 31,300
Properties Sold in Northwestern United States And Canada
Property, plant and equipment
Net book value at time of disposal	15,200		15,200
Properties Sold in Northwestern United States and Europe
Property, plant and equipment
Net book value at time of disposal	18,700		18,700
Land
Property, plant and equipment
Property, plant and equipment, gross	5,021		5,021		21,044
Building and land improvements
Property, plant and equipment
Property, plant and equipment, gross	67,492		67,492		98,972
Furniture and fixtures
Property, plant and equipment
Property, plant and equipment, gross	25,898		25,898		27,531
Computer and office equipment
Property, plant and equipment
Property, plant and equipment, gross	153,023		153,023		158,022
Field equipment
Property, plant and equipment
Property, plant and equipment, gross	139,815		139,815		140,542
Leasehold improvements
Property, plant and equipment
Property, plant and equipment, gross	$ 72,686		$ 72,686		$ 80,871

Fair Value of Financial Instr40

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 25, 2015	Dec. 31, 2014
Carrying Amount | Mortgage notes payable
Carrying value and estimated fair value of financial instruments
Long-term debt	$ 115	$ 8,682
Carrying Amount | Equipment financing
Carrying value and estimated fair value of financial instruments
Long-term debt	9,505	11,392
Fair Value | Level 2 | Mortgage notes payable
Carrying value and estimated fair value of financial instruments
Long-term debt	115	7,925
Fair Value | Level 2 | Equipment financing
Carrying value and estimated fair value of financial instruments
Long-term debt	$ 8,425	$ 10,747

Fair Value of Financial Instr41

Fair Value of Financial Instruments Foreign Exchange Contracts (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 25, 2015USD ($)instrument	Sep. 25, 2015USD ($)instrument
Fair Value of Financial Instruments
Number of instruments that extend beyond 5 years | instrument	0	0
Derivative Asset	$ 200	$ 200
Realized and unrealized losses	$ 6,200	$ 10,500

Line of Credit and Long-Term 42

Line of Credit and Long-Term Debt (Details) $ in Thousands	Jun. 24, 2015USD ($)shares	Sep. 25, 2015USD ($)shares	Dec. 31, 2014USD ($)	Mar. 30, 2015USD ($)
Long-term debt
Total debt		$ 269,518	$ 513,049
Less: current portion of debt		2,653	5,028
Total long-term portion of debt		$ 266,865	$ 508,021
Series A Preferred Stock
Line of credit
Series A Preferred Stock, net of issuance costs (in shares) | shares	3,214,400	3,214,000
Aggregate purchase price of preferred stock	$ 200,000
Credit Agreement
Line of credit
Maximum borrowing capacity				$ 1,100,000
Additional borrowing capacity, option to increase				350,000
Maximum available for the issuance of standby letters of credit after amendment				750,000
Maximum subfacility available for multicurrency borrowings				$ 300,000
Restructuring charges allowed in 2014		$ 9,600
Maximum consolidated leverage ratio Remainder of fiscal year		3.25
Maximum consolidated leverage ratio for 2016 and thereafter		3
Payment that may be made to repurchase common stock in 2016		$ 100,000
Required pro forma leverage threshold thereafter		2.75
Average rate of interest (as a percent)		1.734%	1.734%
Amount outstanding under letters of credit, and bank guarantee facilities		$ 153,800	$ 199,300
Remaining unused borrowing capacity available under the credit facility		555,300
Long-term debt
Total debt		259,611	492,551
Credit Agreement | Maximum
Line of credit
Restructuring charges allowed in 2015		40,000
Cap on restricted payments including common or preferred stock repurchases and redemptions		$ 120,000
Percentage of sale proceeds of assets utilized to repurchase stock		50.00%
Mortgage notes payable
Long-term debt
Total debt		$ 115	$ 8,682
Equipment financing
Long-term debt
Minimum interest rate on notes (as a percent)		0.22%	0.22%
Maximum interest rate on notes (as a percent)		8.84%	8.84%
Total debt		$ 9,505	$ 11,392
Other notes payable
Long-term debt
Total debt		$ 287	$ 424

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014	Dec. 31, 2014
Income taxes
Effective tax rate (as a percent)	24.10%	16.40%	28.30%	16.70%
Undistributed earnings of foreign subsidiaries	$ 345.4		$ 345.4		$ 331.2
Liability for uncertain tax positions and accrued interest	21.9		21.9		34.2
Accrued interest and penalties related to uncertain tax positions	$ 4.7		$ 4.7		$ 7

Restructuring and Related Cha44

Restructuring and Related Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 25, 2015	Sep. 30, 2014	Sep. 25, 2015	Sep. 30, 2014
Restructuring charges
Restructuring charges			$ 25,760
Aggregated costs for restructuring activities	$ 96,200		96,200
Restructuring reserve
Balance at the beginning of the period			16,480
Provision			25,760
Cash Payments			(26,390)
Non-cash settlements			(1,623)
Balance at the end of the period	14,227		14,227
Maximum
Restructuring charges
Additional restructuring charges	25,000		25,000
Employee Severance and Termination Benefits
Restructuring charges
Restructuring charges		$ 3,100	12,712	$ 3,100
Restructuring reserve
Balance at the beginning of the period			1,060
Provision		$ 3,100	12,712	$ 3,100
Cash Payments			(13,772)
Facility Costs
Restructuring charges
Restructuring charges			3,500
Restructuring reserve
Balance at the beginning of the period			15,000
Provision			3,500
Cash Payments			(2,650)
Non-cash settlements			(1,623)
Balance at the end of the period	14,227		14,227
Other
Restructuring charges
Restructuring charges			9,548
Restructuring reserve
Balance at the beginning of the period			420
Provision			9,548
Cash Payments			(9,968)
General and administrative expense.
Restructuring charges
Restructuring charges	8,200		25,800
Restructuring reserve
Provision	$ 8,200		$ 25,800

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012employee	Sep. 25, 2015USD ($)	Dec. 31, 2012employee	Dec. 31, 2011employee	Dec. 31, 2014USD ($)
Commitments and Contingencies
Accruals for potential estimated claim liabilities | $		$ 14.2			$ 16.3
Number of former employees who pleaded guilty in United States District Court			8	8
Number of former employees involved in civil False Claims Act case filed in the District Court for the Eastern District of Washington	1
Term required to comply with ongoing requirements under the Non-Prosecution Agreement		3 years
Legal settlement payment in total under both agreements | $		$ 18.5