CH2M Hill Companies 10-Q 20 Jan 17 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Jan. 13, 2017
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. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		25,127,962
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 25, 2015
Current assets:
Cash and cash equivalents	$ 126,274	$ 197,021
Receivables, net-
Client accounts	596,364	739,532
Unbilled revenue	634,959	601,713
Other	12,259	17,316
Income tax receivable	400	19,800
Prepaid expenses and other current assets	94,469	95,809
Total current assets	1,464,725	1,671,191
Investments in unconsolidated affiliates	73,496	84,296
Property, plant and equipment, net	254,055	203,666
Goodwill	499,364	510,985
Intangible assets, net	43,911	59,011
Deferred income taxes	414,847	255,385
Employee benefit plan assets and other	78,927	76,765
Total assets	2,829,325	2,861,299
Current liabilities:
Current portion of long-term debt	2,224	2,069
Accounts payable and accrued subcontractor costs	441,862	504,098
Billings in excess of revenue	366,135	302,647
Accrued payroll and employee related liabilities	269,628	328,585
Other accrued liabilities	351,178	338,926
Total current liabilities	1,431,027	1,476,325
Long-term employee related liabilities	530,651	599,033
Long-term debt	420,469	299,593
Other long-term liabilities	127,898	109,017
Total liabilities	2,510,045	2,483,968
Commitments and contingencies (Note 14)
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized of which 10,000,000 are designated as Series A; 4,821,600 and 3,214,400 issued and outstanding at September 30, 2016 and as of December 25, 2015, respectively	48	32
Common stock, $0.01 par value, 100,000,000 shares authorized; 25,031,837 and 26,282,913 issued and outstanding at September 30, 2016 and December 25, 2015, respectively	250	263
Additional paid-in capital	151,295	125,381
Retained earnings	549,685	561,213
Accumulated other comprehensive loss	(285,170)	(274,704)
Total CH2M common stockholders' equity	416,108	412,185
Noncontrolling interests	(96,828)	(34,854)
Total stockholders' equity	319,280	377,331
Total liabilities and stockholders' equity	$ 2,829,325	$ 2,861,299

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 25, 2015
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	4,821,600	3,214,400
Preferred stock, shares outstanding	4,821,600	3,214,400
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	25,031,837	26,282,913
Common stock, shares outstanding	25,031,837	26,282,913
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. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015
Consolidated Statements of Operations
Gross revenue		$ 1,279,230	$ 1,365,186	$ 3,872,921	$ 3,949,320
Equity in earnings of joint ventures and affiliated companies		26,877	14,890	44,647	36,908
Operating expenses:
Direct cost of services		(1,189,167)	(1,096,008)	(3,497,257)	(3,190,539)
Selling, general and administrative		(225,290)	(220,246)	(692,915)	(679,619)
Operating (loss) income		(108,350)	63,822	(272,604)	116,070
Other income (expense):
Interest income		136	56	306	158
Interest expense		(3,873)	(3,041)	(10,019)	(11,421)
(Loss) income before provision for income taxes		(112,087)	60,837	(282,317)	104,807
Benefit (provision) for income taxes		78,438	(12,332)	118,202	(25,691)
Net (loss) income		(33,649)	48,505	(164,115)	79,116
Less: loss (income) attributable to noncontrolling interests		49,582	(9,060)	142,585	(12,423)
Net income attributable to CH2M		$ 15,933	$ 39,445	$ (21,530)	$ 66,693
Net income (loss) attributable to CH2M per common share1:
Basic (in dollars per share)	[1]	$ 0.40	$ 1.22	$ (1.22)	$ 2.26
Diluted (in dollars per share)	[1]	$ 0.40	$ 1.22	$ (1.22)	$ 2.26
Weighted average number of common shares:
Basic (in shares)		25,356,689	27,139,832	25,816,819	27,281,219
Diluted (in shares)		25,389,138	27,198,832	25,816,819	27,297,219
[1]	Represents net (loss) income attributable to CH2M less (i) income allocated to preferred stockholders of $1,984 for the three months ended September 30, 2016 and $3,913 and $2,502 for the three and nine months ended September 25, 2015, respectively, and (ii) accrued dividends attributable to preferred stockholders of $3,891 and $10,067 for the three and nine months ended September 30, 2016, respectively, and $2,501 and $2,556 for the three and nine months ended September 25, 2015, respectively

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015
Net income (loss) attributable to CH2M per common share1:
Income allocated to preferred stockholders	$ 1,984	$ 3,913		$ 2,502
Accrued dividends attributable to preferred stockholders	3,891	2,501	$ 10,067	2,556
Preferred Stock
Net income (loss) attributable to CH2M per common share1:
Income allocated to preferred stockholders	1,984	3,913		2,502
Accrued dividends attributable to preferred stockholders	$ 3,891	$ 2,501	$ 10,067	$ 2,556

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015
Consolidated Statements of Comprehensive (Loss) Income
Net (loss) income	$ (33,649)	$ 48,505	$ (164,115)	$ 79,116
Other comprehensive loss:
Foreign currency translation adjustments	(17,197)	(17,365)	(5,432)	(30,253)
Benefit plan adjustments, net of tax	(9,104)	2,657	(5,034)	7,935
Other comprehensive loss	(26,301)	(14,708)	(10,466)	(22,318)
Comprehensive (loss) income	(59,950)	33,797	(174,581)	56,798
Less: comprehensive (loss) income attributable to noncontrolling interests	(49,582)	9,060	(142,585)	12,423
Comprehensive income (loss) attributable to CH2M	$ (10,368)	$ 24,737	$ (31,996)	$ 44,375

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015
Cash flows from operating activities:
Net (loss) income	$ (164,115)	$ 79,116
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	47,835	55,580
Stock-based employee compensation	28,952	25,005
Loss (gain) on disposal of property, plant and equipment	62	(3,647)
Allowance for uncollectible accounts	3,706	1,646
Deferred income taxes	(145,523)	(37,872)
Undistributed earnings and gains from unconsolidated affiliates	(44,647)	(36,908)
Distributions of income from unconsolidated affiliates	41,214	39,948
Contributions to defined benefit pension plans	(30,482)	(29,459)
Gain on pension curtailment	(4,568)
Excess tax benefits from stock-based compensation, operating	(3,093)	(3,931)
Change in assets and liabilities:
Receivables and unbilled revenue	119,362	45,431
Prepaid expenses and other	(2,515)	11,469
Accounts payable and accrued subcontractor costs	(84,328)	(50,511)
Billings in excess of revenue	65,000	(56,630)
Accrued payroll and employee related liabilities	(54,572)	71,753
Other accrued liabilities	36,271	(75,747)
Income tax receivable	18,202	58,540
Long-term employee related liabilities and other	37,106	(23,241)
Net cash (used in) provided by operating activities	(129,947)	78,404
Cash flows from investing activities:
Capital expenditures	(87,680)	(21,506)
Acquisition related payments	(17,901)
Investments in unconsolidated affiliates	(16,596)	(23,897)
Distributions of capital from unconsolidated affiliates	10,456	20,855
Proceeds from sale of operating assets	2,703	39,878
Net cash (used in) provided by investing activities	(109,018)	15,330
Cash flows from financing activities:
Borrowings on long-term debt	1,808,743	1,718,769
Payments on long-term debt	(1,690,254)	(1,962,730)
Repurchases and retirements of common stock	(103,911)	(58,483)
Proceeds from the issuance of preferred stock, net of issuance costs	99,800	191,677
Settlement of tax-withholding obligation on stock-based compensation, financing	(3,720)	(4,339)
Net contributions from noncontrolling interests	74,554	56,136
Net cash provided by (used in) financing activities	185,212	(58,970)
Effect of exchange rate changes on cash	(16,994)	(11,303)
(Decrease) increase in cash and cash equivalents	(70,747)	23,461
Cash and cash equivalents, beginning of period	197,021	131,477
Cash and cash equivalents, end of period	126,274	154,938
Supplemental disclosures:
Cash paid for interest	9,781	11,171
Cash paid for income taxes	$ 7,390	$ 16,637

Summary of Business and Signifi

Summary of Business and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 large employee-controlled professional engineering services firm, founded in 1946, providing engineering, construction, consulting, design, design‑build, procurement, engineering‑procurement‑construction (“EPC”), operations and maintenance, program management and technical services to United States (“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 Amendment No. 1 on Form 10-K/A for the year ended December 25, 2015. 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, subcontractor costs, 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 four 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, plus a fixed fee or an award fee. We generally recognize revenue based on the labor 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. The significance of these estimates varies with the complexity of the underlying project, with our large, fixed-price EPC projects being most significant. 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. Additional contract revenue related to claims is included in total estimated contract revenue when the amount can be reliably estimated, which is typically evidenced by a contract or other evidence providing a legal basis for the claim. 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. Accounts Receivable We reduce accounts receivable by estimating an allowance for amounts that may become uncollectible in the future. Management determines the estimated allowance for uncollectible amounts based on their judgments in evaluating the aging of the receivables and the financial condition of our clients, which may be dependent on the type of client and the client’s current financial condition. 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 any period presented. Restructuring and Related Charges 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 current and long-term liability, within other accrued liabilities and other long term liabilities, respectively, and the related expense, within general and administration 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 the FASB ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), as amended. Our annual goodwill impairment test is conducted as of the first day of the fourth quarter of each year, however, 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 estimated 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 net replacement cost using current market quotes. 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 other accrued liabilities as applicable. The periodic change in the fair value of the derivative instruments related to our business group operations is recognized in earnings within direct costs. The periodic change in the fair value of the derivative instruments related to our general corporate foreign currency exposure is recognized within selling, 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 HILL Companies, Ltd. Amended and Restated 401(k) Plan which became effective January 1, 2013 (“401(k) Plan”). Effective January 1, 2016, the 401(k) Plan allows for matching contributions up to 58.33% of the first 6% of elective deferrals up to 6% of the employee’s quarterly 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 30, 2016 were $8.3 million and $21.3 million, respectively, compared to $3.8 million and $16.3 million for the three and nine months ended September 25, 2015. Recently Adopted Accounting Standards In October 2016, the FASB issued Accounting Standard Update ("ASU") 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control . This standard amends the guidance issued with ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis in order to make it less likely that a single decision maker would individually meet the characteristics to be the primary beneficiary of a Variable Interest Entity ("VIE"). When a decision maker or service provider considers indirect interests held through related parties under common control, they perform two steps. The second step was amended with this ASU to say that the decision maker should consider interests held by these related parties on a proportionate basis when determining the primary beneficiary of the VIE rather than in their entirety as was called for in the previous guidance. This ASU will be effective for fiscal years beginning after December 15, 2016, and early adoption is not permitted. We are currently evaluating the impact of the adoption of this ASU on our financial position and results of operations. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU was issued with the objective to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard will require companies to recognize the income tax consequences of an intra-entity transfer of non-inventory asset when the transfer occurs. This ASU will be effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU on our financial position and results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance for eight specific changes with respect to how certain cash receipts and cash payments are classified within the statement of cash flows in order to reduce existing diversity in practice. This ASU will be effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impacts the adoption of this standard will have on our consolidated statements of cash flows. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payments Accounting . During the three months ended September 30, 2016, the Company elected to early adopt ASU 2016-09 with an effective date of December 26, 2015. As a result, for the nine months ended September 30, 2016, the Company recognized the excess tax benefit of $3.1 million within income tax benefit on the consolidated statements of operations, adopted prospectively, and previously unrecognized excess tax benefits of $11.1 million resulted in a cumulative-effect adjustment to retained earnings. The adoption did not impact the existing classification of awards. Excess tax benefits from stock-based compensation of $3.9 million for the nine months ended September 25, 2015 was restated into cash flows from operating activities from cash flows from financing activity. Additionally, adopted retrospectively, the Company reclassified $3.7 million and $4.3 million of employee withholding taxes paid from operating activities into financing activities for the nine months ended September 30, 2016 and September 25, 2015, respectively. Following the adoption of the standard, the Company elected to continue estimating the number of awards expected to be forfeited and adjust its estimate on an ongoing basis. In February 2016, the FASB issued ASU 2016-02, Leases . This ASU is a comprehensive new leases standard that was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We continue to assess the impact of adopting ASU 2016-02, but expect to record a significant amount of right-of-use assets and corresponding liabilities based upon our current operating leases. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments issued with this ASU require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. An entity’s equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this update. This ASU will be effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods, with early adoption permitted. We believe this standard’s impact on CH2M will be limited to equity securities currently accounted for under the cost method of accounting, which as of September 30, 2016 are valued at $3.5 million within investments in unconsolidated affiliates on the consolidated balance sheet. We do not expect the adoption of this standard to have a material impact on our consolidated statements of operations. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes . The ASU simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets are classified as noncurrent in a classified statement of financial position. This simplification does not affect the current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount. This ASU is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We have elected to early adopt this ASU as of December 26, 2015 in order to benefit from the simplification of the deferred income tax balance sheet presentation. We have applied the change in accounting principle retrospectively resulting in a total long-term deferred tax asset of $255.4 million as of December 25, 2015, which had previously been reported as a current deferred tax asset of $8.7 million and a long-term deferred tax asset of $246.7 million. 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 reporting periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and subsequently modified with various amendments and clarifications. 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. This ASU, as amended, is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. 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, the subsequently issued amendments, and the transition alternatives on its financial position and results of operations. We have begun categorizing our various contract revenue streams in order to isolate those that will be significantly impacted. Once we have identified the impacted revenue streams, we can begin estimating the potential impact of the new standard as well as identify necessary control and process changes.

Changes in Project-Related Esti

Changes in Project-Related Estimates	9 Months Ended
	Sep. 30, 2016
Changes in Project-Related Estimates
Changes in Project-Related Estimates	(2) Changes in Project-Related Estimates We have a fixed-price Transportation contract to design and construct roadway improvements on an expressway in the southwestern United States. The project is approximately two thirds complete. During the three and nine months ended September 25, 2015, we experienced unforeseen and unexpected cost growth resulting in charges to operations totaling $2.5 million and $74.1 million, respectively. The cost growth was primarily caused by design changes for a water main relocation, the discovery of extremely hard and abrasive rock during construction, differing site conditions, unidentified and mismarked utilities, client requested changes, labor supply challenges in the construction market, lower than expected labor productivity, and severe adverse weather delays. During the second quarter of 2016, we estimated further cost growth in the amount of $60.0 million as a result of a review of the covered scope of contracts, survey engineering and design challenges, rework of previously installed work and client-caused delays, including limited daytime access to portions of the site, the sum of which resulted in increased material quantities and work and schedule extensions. We also had severe weather including record rainfall, and production shortfalls resulting from differing site conditions and engineering rework. Additionally, during the three months ended September 30, 2016, we estimated additional cost growth of $65.6 million due to continued survey engineering and design challenges, additional rework, greater than expected subcontractor costs, subcontracting work previously planned to be self-performed, delivery schedule extensions (which increased the overall estimated costs for labor and expenses), greater than expected construction material expenditures, and additional weather delays. CH2M is seeking resolution of outstanding change orders and claims through a combination of submissions to the Disputes Board under the terms of the contract and direct negotiations with the client. Change orders and claims totaling approximately $84.0 million have been submitted to the client. We have received favorable, non-binding recommendations from the Disputes Board on some of the claims. We have not been able to reach a mutual resolution with the client on these claims or the other change orders submitted. CH2M will continue to aggressively pursue its entitlements based on claims and change orders, including litigation if it cannot reach resolution with the client. Accordingly, we cannot currently estimate the timing or amounts of recoveries or costs that may be achieved or incurred through these resolution processes, and as such, we have not included any recoveries from these change orders and claims in our current estimated costs to complete. While management believes that it has recorded an appropriate provision to complete the project, we may incur additional costs and losses if our cost estimation processes identify new costs not previously included in our total estimated loss. These possible cost increases include extensions of the schedule to complete the job, lower than expected productivity levels, and performance issues with our subcontractors. These potential changes in estimates could be materially adverse to the Company’s results of operations, cash flow or liquidity. Within our Power EPC segment, we are involved in a fixed-price EPC project in Australia through a consolidated joint venture partnership with an Australian construction contractor and a major U.S.-based gas power technology manufacturer (the “Consortium”) 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 30, 2016, the total contract value of the joint venture project was approximately $550.8 million, and the project was approximately 75% complete based on costs incurred to date, with engineering and procurement substantially complete and construction and commissioning activities ongoing. Due to a variety of issues related to the scope of work, the joint venture experienced project losses in 2014, of which our portion of the loss was $140.0 million. In 2015, the Consortium reached agreement with the client to settle certain claims to recover costs and extend the amount of time allowed to complete interim delivery milestones for the project. At that time, the total estimated costs to complete the project were reviewed by the project team and increased to reflect the agreed upon schedule and deliverables of the job. These revisions to the expected project costs largely offset the cost recoveries received from the settlement, and as a result we did not make a change to the loss provision in 2015. During the second quarter of 2016, the client advised it was unable to meet various obligations in line with the program schedule as required under the terms of the contract. These delays, other client-driven factors, and related lower than expected construction labor productivity rates were the primary drivers that resulted in the joint venture recognizing a charge to operations of $190.5 million in the second quarter of 2016. Our portion of the increased project costs was $95.3 million. As of the end of the third quarter of 2016, the client is unable to confirm the timing of its deliverables under the terms of the contract including the supply of feed gas, plant utilities and electrical power loads. As a result, it is now anticipated the project completion date will be delayed into the second half of 2018, thus significantly increasing the costs estimated to complete the project. Additionally, forecasted productivity levels that were assumed for construction completion have not been achieved, primarily as a result of client delays and disruptions, also increasing our total estimated costs to complete. As a result of these factors and inclusive of estimated anticipated further disruptions and inefficiencies, the joint venture recognized an additional $111.0 million charge to operations in the third quarter of 2016, of which our portion was $58.8 million. To mitigate cost increases due to these changed conditions, as well as to better align resources with the anticipated timing of completion, the joint venture has recently reduced the on-site workforce while simultaneously working with the client to agree upon revisions to the project schedule. To date, the joint venture has submitted a significant amount of change orders and claims to the client for recoveries and will continue to aggressively pursue recovery of costs and schedule relief to which we are entitled. The amount of any recoveries is currently unknown and will be subject to negotiations or a formal dispute processes, and therefore the estimated loss provision does not assume any cost recovery assumptions at this time. While management believes the current estimated costs to complete the project represent the best estimate at this time, there is a significant amount of work that still needs to be performed on the project before achieving substantial completion. Any additional delays that the project could experience or disruptions not currently anticipated in the forecast at this time will likely result in additional cost growth. Significant estimates are required to be made surrounding construction productivity rates and the duration of the scheduled construction activities. These amounts are based on the project team’s best estimates with the information that is available but can differ materially when the activities are executed. In addition, any unforeseen issues arising from testing and commissioning activities or unanticipated costs during the warranty period could adversely affect the project. Thus, there can be no assurance that additional cost growth will not occur. Any additional changes in estimates could be materially adverse to the Company’s results of operations, cash flow or liquidity. All reserves for project related losses for these projects as well as other immaterial loss projects are included in other accrued liabilities and totaled $223.0 million and $152.6 million as of September 30, 2016 and December 25, 2015, respectively. Of the amounts included in the September 30, 2016 and December 25, 2015 balances, $60.8 million and $44.4 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. 30, 2016
Segment Information
Segment Information	(3) Segment Information In the first quarter of 2016, we implemented certain organizational changes, including the reorganization of our internal reporting structure to better facilitate our strategy for growth and operational efficiency. In connection with this refinement, we have discontinued our former Industrial and Urban Environments (“IUE”) business group as a standalone unit, and we have combined its industrial and advanced technology business with our Oil, Gas and Chemicals business group to form the Energy and Industrial business group. Additionally, our urban environments and sports business which was formerly within IUE has been combined with our Water business group. Our Power EPC business continues to be monitored as a separate operating segment as we exit the fixed-price Power EPC business. As a result of this reorganization, we have identified our four business groups, which include Energy and Industrial, Environment and Nuclear, Transportation, and Water, as well as our Power EPC business as reportable operating segments. Certain financial information relating to the three and nine months ended September 30, 2016 and September 25, 2015 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 to each segment based on the estimated 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. Additionally, during the third quarter of 2016, an Environment and Nuclear consolidated joint venture consulting project in Canada eliminated a previously existing one-month reporting lag, which had been required to achieve a timely consolidation. As a result of this change, revenue and direct cost of services each included an additional $51.7 million for the three and nine months ended September 30, 2016, respectively. There was no impact to our operating loss for the three and nine months ended September 30, 2016. Prior year amounts have been revised to conform to the current year presentation. Three Months Ended September 30, 2016 Three Months Ended September 25, 2015 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Energy and Industrial $ $ $ $ $ $ Environment and Nuclear Transportation Water Power EPC — — Total $ $ $ $ $ $ Nine Months Ended September 30, 2016 Nine Months Ended September 25, 2015 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Energy and Industrial $ $ $ $ $ $ Environment and Nuclear Transportation Water Power EPC — — Total $ $ $ $ $ $ During the third quarter of 2016, the Company began the process of assessing and modifying its current operating structure to more fully align global operations with the Company’s client-centric strategy and to streamline its delivery model to achieve higher levels of profitable growth. The transformation is currently in process and is expected to be fully communicated and operational in the first quarter of 2017. We expect to revise our segments in 2017 as a result of the modified operating structure.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Stockholders’ Equity
Stockholders' Equity	(4) Stockholders’ Equity The changes in stockholders’ equity for the nine months ended September 30, 2016 are as follows: Common Preferred (in thousands) Shares Shares Amount Stockholders’ equity, December 25, 2015 $ Cumulative retained earnings adjustment related to adoption of ASU 2016-09 Restated stockholders’ equity, December 26, 2015 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 loss attributable to CH2M — — Other comprehensive income, net of tax — — Loss attributable to noncontrolling interests — — Acquisition of controlling interest in joint venture — — Investment in affiliates, net — — Stockholders’ equity, September 30, 2016 $ Preferred Stock As of September 30, 2016, 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 pursuant to the Subscription Agreement entered into by the Company and Apollo on May 27, 2015 (“Subscription Agreement”). On April 11, 2016, Apollo purchased 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 subject to the conditions within the Subscription Agreement. Total proceeds from the preferred stock offering were $99.8 million, net of issuance costs of $0.2 million. Under our agreement with Apollo, the maximum consolidated leverage ratio is 3.00x for 2016 and beyond, consistent with our Third Amendment to our Amended and Restated Credit Agreement (“Amended Credit Agreement”) . As of September 30, 2016, we were in compliance with this covenant. Management continually assesses its potential future compliance with the consolidated leverage ratio covenant based on estimates of future earnings and cash flows. If there is an expected possibility on non-compliance, we will discuss possibilities with Apollo to modify the covenant consistent with discussions with the Company’s lenders or utilize other means of capitalizing the Company to anticipate or remedy any non-compliance. The expected cash outflows required to fund the project losses discussed in Note 2 – Changes in Project-Related Estimates and the related impact on earnings will put a financial strain on the Company that may require an amendment or other remedies to be pursued by management if certain earnings estimates or cash flow improvement initiatives are not achieved or if required to facilitate restructuring plans. 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 there is 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 Fifth 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 the 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 adjustments 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 or 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 Fifth 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. 30, 2016
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. In the event the Company has a net loss, the net loss is not allocated to preferred stockholders as the holders do not have a contractual obligation to share in the Company’s losses. The Company considers all of the Series A Preferred Stock to be participating securities as the holders of the preferred stock are entitled contractually to receive a cumulative dividend. Diluted EPS under the two-class method 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. 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. Additionally, when calculating diluted EPS, the Company analyzes the potential dilutive effect of the outstanding preferred stock under the if-converted method, in which it is assumed that the outstanding preferred stock convert to common stock at the beginning of the period. In the event that the if-converted method is more dilutive than the two-class method, the if-converted diluted EPS will be reflected in our financial statements. Common stock equivalents are only included in the diluted EPS calculation when their effect is dilutive. The table below presents the reconciliations of basic and diluted EPS for the three and nine months ended September 30, 2016 and September 25, 2015. The reconciliations of basic and diluted EPS for the three and nine months ended September 25, 2015 have been restated to conform to the two-class method and presentation as shown below: Three Months Ended Nine Months Ended September 30, September 25, September 30, September 25, (in thousands, except per share amounts) 2016 2015 2016 2015 Numerator - basic and diluted: Net (loss) income $ $ $ $ Less: loss (income) attributable to noncontrolling interests Net income attributable to CH2M Less: accrued dividends attributable to preferred stockholders Less: income allocated to preferred stockholders - basic — Income (loss) available to common stockholders - basic and 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 (loss) income per common share $ $ $ $ Diluted net (loss) income per common share $ $ $ $ Due to the existence of a net loss available to common shareholders for the nine months ended September 30, 2016, basic and diluted EPS were the same as the effect of potentially dilutive common stock equivalents, including options to purchase 2.6 million of common stock and 5.1 million shares of preferred stock and accumulated preferred stock dividends, would have been antidilutive. For the three and nine months ended September 25, 2015, options to purchase 1.0 million shares of common stock were excluded from the diluted EPS calculation because including them would have been antidilutive .

Variable Interest Entities and

Variable Interest Entities and Equity Method Investments	9 Months Ended
	Sep. 30, 2016
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 30, 2016 and December 25, 2015, total assets of VIEs that were consolidated were $415.6 million and $224.6 million, respectively, and liabilities were $552.0 million and $289.3 million, respectively. These assets and liabilities consist almost entirely of working capital accounts associated with the performance of an Australian fixed-price Power EPC project being executed through a consolidated joint venture partnership and an Environment and Nuclear consolidated joint venture consulting project in Canada . 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 VIEs and equity method investments of $73.5 million and $84.3 million at September 30, 2016 and December 25, 2015, respectively. Our proportionate share of net income or loss as well as gains or losses resulting from changes in fair value of equity method investments due to acquisitions and disposals 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 30, 2016 and December 25, 2015, the total assets of VIEs that were not consolidated were $372.9 million and $389.6 million, respectively, and total liabilities were $297.1 million and $304.9 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.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets
Goodwill and Intangible Assets	(7) Goodwill and Intangible Assets On September 6, 2016, we acquired a controlling interest in one of our joint ventures for consideration of $6.3 million, $2.1 million net of cash acquired, resulting in a gain of $15.0 million on the fair value remeasurement of the original equity method investment recorded in equity in earnings of joint ventures and affiliated companies and $31.3 million of goodwill as shown below. We are currently in the process of finalizing the initial purchase price allocation for the acquisition. The following table presents the changes in goodwill by segment, excluding segments to which no goodwill is associated, during the nine months ended September 30, 2016: ($ in thousands) Environment and Nuclear Energy and Industrial Transportation Water Consolidated Total Balance as of December 25, 2015 $ $ $ $ $ Acquisitions — Foreign currency translation — Balance as of September 30, 2016 $ $ $ $ $ The following table presents the changes in intangible assets by segment, excluding segments to which no intangible assets are associated, during the nine months ended September 30, 2016: ($ in thousands) Environment and Nuclear Transportation Water Consolidated Total Balance as of December 25, 2015 $ $ $ $ Amortization Foreign currency translation Balance as of September 30, 2016 $ $ $ $ Intangible assets with finite lives consist of the following: Accumulated Net finite-lived ($ in thousands) Cost Amortization intangible assets September 30, 2016 Customer relationships $ $ $ Tradename - Total finite-lived intangible assets $ $ $ December 25, 2015 Customer relationships $ $ $ Tradename Total finite-lived intangible assets $ $ $ All intangible assets are being amortized over their expected lives of between two years and ten years. The amortization expense reflected in the consolidated statements of operations for the three months ended September 30, 2016 and September 25, 2015 totaled $4.4 million and $6.2 million, respectively, and $13.9 million and $19.7 million for the nine months ended September 30, 2016 and September 25, 2015, respectively. All intangible assets are expected to be fully amortized in 2024. At September 30, 2016, the future estimated amortization expense related to these intangible assets is: Amortization ($ in thousands) Expense 2016 (three months remaining) $ 2017 2018 2019 2020 2021 Thereafter $

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment
Property, Plant and Equipment	(8) Property, Plant and Equipment Property, plant and equipment consists of the following: September 30, December 25, ($ in thousands) 2016 2015 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 $10.9 million and $11.1 million for the three months ended September 30, 2016 and September 25, 2015, respectively, and $33.9 million and $35.9 million for the nine months ended September 30, 2016 and September 25, 2015, respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Fair Value of Financial Instruments
Fair Value of Financial Instruments	(9) Fair Value of Financial Instruments Cash and cash equivalents, client accounts receivable, 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. Fair value of long ‑ term debt, including the current portion, is estimated based on Level 2 inputs, except the amount outstanding on the 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 30, 2016 December 25, 2015 Carrying Fair Carrying Fair ($ in thousands) Amount Value Amount Value Equipment financing $ $ $ $ Note payable by consolidated joint venture $ $ $ — — 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 typically based upon Level 2 inputs including third-party quotes. At September 30, 2016, we had forward foreign exchange contracts on major world currencies with varying durations, none of which extend beyond one year. As of September 30, 2016, we had $0.1 million of derivative assets. We had an insignificant amount of derivative assets as of December 25, 2015. The unrealized and realized gains and losses due to changes in derivative fair values included in selling, general and administrative expense are as follows: Three Months Ended Nine Months Ended September 30, September 25, September 30, September 25, (in thousands) 2016 2015 2016 2015 Unrealized gain from changes in derivative fair values $ $ $ $ Realized loss from changes in derivative fair values $ $ $ $

Line of Credit and Long-Term De

Line of Credit and Long-Term Debt	9 Months Ended
	Sep. 30, 2016
Line of Credit and Long-Term Debt
Revolving Credit Facility and Long Term Debt	(10) Line of Credit and Long-Term Debt On September 30, 2016, we entered into a Third Amendment to our Second Amended and Restated Credit Agreement (“Amended Credit Agreement”), to provide us with additional financial and operational flexibility, particularly by modifying the definition of consolidated adjusted EBITDA to allow for the exclusion of expected cash restructuring charges and cash payments on the project losses attributable to ongoing fixed-price contacts for purposes of determining the consolidated leverage ratio. In addition, the Amended Credit Agreement lowered our maximum available revolving credit facility to $925.0 million from $1.1 billion. The credit facility matures on March 28, 2019 and includes a subfacility for the issuance of standby letters of credit up to $500.0 million, a subfacility of up to $300.0 million for multicurrency borrowings, and a subfacility of up to $50.0 million for swingline loans. Under the terms of the Amended Credit Agreement, we may be able to invite existing and new lenders to increase the amount available to be borrowed by up to $200.0 million. Other technical and operating changes to the Amended Credit Agreement specifically achieved the following: · Increased the margins used to determine the interest rates of revolving loans under the Amended Credit Agreement and the commitment fees payable by CH2M; · Limited the amount CH2M may spend to repurchase its common stock in connection with its employee stock ownership program up to $75.0 million during the three quarter period ending March 31, 2017 and, thereafter, up to $100.0 million during a rolling four quarter period less the amount of any legally required repurchases of common stock held in benefit plans; · Limited CH2M’s ability to pay cash dividends on preferred stock until no more than 10% of our consolidated adjusted EBITDA consists of the cash and non-cash charges related to restructuring charges and project costs and losses in any rolling four quarter period and subject to minimum pro forma leverage ratio; · Disallows the use of proceeds from asset sales to repurchase common or preferred stock; and, · Granted security interests to the lenders in substantially all of the assets of CH2M and CH2M’s subsidiaries, subject to certain carve-outs. All other terms of the Amended Credit Agreement are consistent with those of the previous amended credit agreement entered into on March 30, 2015, and are disclosed in the Annual Report on Amendment No. 1 on Form 10-K/A for the year ended December 25, 2015. The Amended Credit Agreement contains customary representations, 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. On January 10, 2017, we received from the lenders under the Amended Credit Agreement, a waiver of compliance with respect to the certifications to the lenders relating to our unaudited consolidated financial statements as of and for the quarters ended June 26, 2015, September 25, 2015 and December 25, 2015 and to the determination that a material weakness exists in our internal controls over financial accounting. The waiver ensures that no event of default exists under the Amended Credit Agreement as a result of the restatement, and we may request the issuance of new loan advances and letters of credit under the Amended Credit Agreement in accordance with its terms. As of September 30, 2016, we were in compliance with the covenants required by the Amended Credit Agreement. Management continually assesses its potential future compliance with the Amended Credit Agreement covenants based upon estimates of future earnings and cash flows. If there is an expected possibility of non-compliance, we will discuss possibilities with the Company’s lenders or utilize other means of capitalizing the Company to anticipate or remedy any non-compliance. The expected cash outflows required to fund the project losses discussed in Note 2 – Changes in Project-Related Estimates and the related impact on earnings will put a financial strain on the Company that may require an amendment or other remedies to be pursued by management if certain earnings estimates or cash flow improvement initiatives are not achieved or if required to facilitate restructuring plans. Our nonrecourse and other long-term debt consist of the following: September 30, December 25, ($ in thousands) 2016 2015 Revolving Credit Facility, average rate of interest of 3.4% $ $ Equipment financing, due in monthly installments to September 2021, secured by equipment. These notes bear interest ranging from 0.22% to 3.29% Note payable by consolidated joint venture, due July 2019. This note bears interest at 6-month LIBOR plus 2.5% — Other notes payable Total debt Less: current portion of debt Total long-term portion of debt $ $ At September 30, 2016 and December 25, 2015, company-wide issued and outstanding letters of credit and bank guarantee facilities were $132.2 million and $145.5 million, respectively. The remaining unused borrowing capacity under the Credit Facility was $194.3 million as of September 30, 2016.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Taxes
Income Taxes	(11) Income Taxes After adjusting for the impact of loss attributable to noncontrolling interests, the effective tax rate on the loss attributable to CH2M for the nine months ended September 30, 2016 was 84.6% compared to 27.8% on the profit for the same period in the prior year and for the loss attributable to the three months ended September 30, 2016 was 125.5% compared to 23.8% for the profit for the same period in the prior year. The effective tax rate attributable to CH2M for the three and nine months ended September 30, 2016 was higher compared to the same periods in the prior year primarily due to the favorable impacts associated with the release of the valuation allowances for pension and net operating loss deferred tax assets due the reduction in our pension liabilities resulting from the renegotiation of pension agreements and implementation of a new transfer pricing policy. Our effective tax rate continues to be negatively impacted by the effect of non-deductible foreign net operating losses and the disallowed portions of meals and entertainment expenses. CH2M is required to record all deferred tax assets or liabilities for temporary differences, net operating loss carryforwards, and tax credit carryforwards. A deferred tax asset valuation allowance is established when it is more likely than not that all or some portion of the deferred tax assets will not be realized in future periods. Halcrow Group Limited (“HGL”), a subsidiary of CH2M, has substantial deferred tax assets, primarily related to the Halcrow Pension Scheme (“HPS), a defined benefit plan sponsored by HGL. These deferred tax assets represent future deductions available to HGL. When HGL was acquired in 2011, it was determined a full valuation allowance was required on these assets as there was uncertainty regarding the ability to realize these assets in the future. On October 4, 2016, HGL effected a transaction to restructure the benefits provided to members of the HPS, and, as a result, we expect a reduction in our overall pension liability and related future funding obligations. For additional information regarding the Halcrow Pension Scheme and changes to the defined benefit plan effective October 4, 2016, refer to Note 15 – Subsequent Events . Consequently, we believe that the deferred tax assets of HGL will now more likely than not be realized at some point in the future. Therefore, we removed the valuation allowance, generating a benefit of approximately $46.1 million in the third quarter of 2016. During the three months ended September 30, 2016, the Company elected to early adopt ASU 2016-09 with an effective date of December 26, 2015. Accordingly, the Company recognized $3.1 million of tax benefit. This in addition to the previously unrecognized excess tax benefits of $11.1 million, which resulted in a cumulative-effect adjustment to retained earnings. Estimated undistributed earnings of our foreign subsidiaries amounted to approximately $471.4 million and $341.8 million at September 30, 2016 and December 25, 2015, 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 30, 2016 and December 25, 2015, we had $53.9 million and $38.5 million, respectively, recorded as a liability for uncertain tax positions. We recognize interest and penalties related to unrecognized tax benefits in income tax expense or benefit. Included in the amounts discussed above are approximately $3.2 million and $3.0 million of accrued interest and penalties related to uncertain tax positions, as of September 30, 2016 and December 25, 2015, 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 2008.

Restructuring and Related Charg

Restructuring and Related Charges	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Charges
Restructuring and Related Charges	(12) Restructuring and Related Charges 2016 Restructuring Plan. During the third quarter of 2016, the Company began a process to review the structure and resources within its business segments and formulate a restructuring plan to more fully align global operations with the Company’s client-centric strategy, including a simplified organization structure and streamlined delivery model to achieve higher levels of profitable growth (“2016 Restructuring Plan”). The anticipated restructuring activities include such items as workforce reductions and facilities consolidations. During the three and nine months ended September 30, 2016, we incurred $4.4 million of costs for these restructuring activities related to the 2016 Restructuring Plan, which have been included in general and administration expense on the consolidated statements of operations. Overall, we expect to incur up to approximately $50.0 million to $70.0 million in total restructuring charges under the 2016 Restructuring Plan, primarily related to employee severance and termination benefits and facilities consolidation costs. We expect the 2016 Restructuring Plan to be completed by the end of the first half of 2017 and to result in aggregate annual cost savings of approximately $90.0 million to $100.0 million. 2014 Restructuring Plan. In September 2014, the Company commenced certain restructuring activities in order to achieve important business objectives, including reducing overhead costs, improving efficiency, and reducing risk (“2014 Restructuring Plan”). These restructuring activities, which continued into 2015, included such items as a voluntary retirement program, workforce reductions, facilities consolidations and closures, and evaluation of certain lines of business. During the three and nine months ended September 25, 2015, we incurred $8.2 million and $25.8 million of costs, respectively, for these restructuring activities, which have been included in selling, general and administration expense on the consolidated statements of operations. The restructuring activities under the 2014 Restructuring Plan were substantially complete as of December 25, 2015. The changes in the provision for the restructuring activities for the nine months ended September 30, 2016 are as follows: 2014 Restructuring Plan 2016 Restructuring Plan ($ in thousands) Employee Severance and Termination Benefits Facilities Cost Other Employee Severance and Termination Benefits Other Consolidated Total Balance, December 25, 2015 $ $ $ $ — $ — $ Provision — — — Cash payments Balance, September 30, 2016 $ $ $ — $ — $ — $ The remaining provisions for employee severance and termination benefits will be paid primarily over the next twelve months, and accruals for facilities costs will be paid over the remaining term of the exited leases which extend through 2028 .

Defined Benefit Plans and Other

Defined Benefit Plans and Other Postretirement Benefits	9 Months Ended
	Sep. 30, 2016
Defined Benefit Plans and Other Postretirement Benefits
Defined Benefit Plans and Other Postretirement Benefits	(13) Defined Benefit Plans and Other Postretirement Benefits We sponsor several defined benefit pension plans primarily in the United States and the United Kingdom. In the U.S., we have three noncontributory defined benefit pension plans. Plan benefits are generally based on years of service and compensation during the span of employment. Benefits in two of the plans are frozen while one plan remains active, the CH2M HILL OMI Retirement Plan (“OMI Plan”). During the three months ended September 30, 2016, the Company adopted an amendment to freeze future pay and benefit service accruals beginning in 2017 for non-union participants within the OMI Plan, resulting a gain on curtailment of $4.6 million as shown in the table below. Additionally, the OMI Plan projected benefit obligation and fair value of plan assets were remeasured as of September 30, 2016, resulting in an increase to the underfunded status of $10.5 million primarily due to the reduced discount rate at September 30, 2016 of 3.80% as compared to the 4.90% as of December 31, 2015. In the U.K., we assumed several defined benefit plans as part of our acquisition of Halcrow on November 10, 2011, of which the largest is the Halcrow Pension Scheme. These Halcrow defined benefit plans have been closed to new entrants for many years. The information related to these plans is presented in the Non ‑ U.S. Pension Plans columns of the tables below. For additional information regarding the Halcrow Pension Scheme and changes to the defined benefit plan effective October 4, 2016, refer to Note 15 – Subsequent Events . The components of the net periodic pension (income) expense for the three and nine months ended September 30, 2016 and September 25, 2015 are detailed below: Three Months Ended September 30, 2016 September 25, 2015 U.S. Non-U.S. U.S. Non-U.S. ($ in thousands) Pension Plans Pension Plans Pension Plans Pension Plans Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service credits — — Recognized net actuarial loss Gain on curtailment — — — Net (income) expense included in current income $ $ $ $ Nine Months Ended September 30, 2016 September 25, 2015 U.S. Non-U.S. U.S. Non-U.S. ($ in thousands) Pension Plans Pension Plans Pension Plans Pension Plans Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service credits — — Recognized net actuarial loss Gain on curtailment — — — Net expense included in current income $ $ $ $ We sponsor a medical benefit plan for retired employees of certain subsidiaries. The plan is contributory, and retiree premiums are based on years of service at retirement. The benefits contain limitations and a cap on future cost increases. We fund postretirement medical benefits on a pay ‑ as ‑ you ‑ go basis. Additionally, we have a frozen non ‑ qualified pension plan that provides additional retirement benefits to certain senior executives who remained employed and retired from CH2M on or after age 65. The components of the non-qualified pension benefit expense and postretirement benefit expense for the three and nine months ended September 30, 2016 and September 25, 2015 are detailed below: Three Months Ended September 30, 2016 September 25, 2015 Non-Qualified Postretirement Non-Qualified Postretirement ($ in thousands) Pension Plan Benefit Plans Pension Plan Benefit Plans Service cost $ — $ $ — $ Interest cost Amortization of prior service (credits) costs — — Recognized net actuarial loss (gain) — Net expense included in current income $ $ $ $ Nine Months Ended September 30, 2016 September 25, 2015 Non-Qualified Postretirement Non-Qualified Postretirement ($ in thousands) Pension Plan Benefit Plans Pension Plan Benefit Plans Service cost $ — $ $ — $ Interest cost Amortization of prior service (credits) costs — — Recognized net actuarial loss (gain) — Net expense included in current income $ $ $ $

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
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 after we have exhausted our self-insurance requirement. 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 30, 2016 and December 25, 2015, accruals for potential estimated claim liabilities were $6.7 million and $11.0 million, respectively. In 2003, the Municipality of Anchorage, Alaska (“Municipality”) began its Port of Anchorage Intermodal Expansion Project by entering into Memoranda of Understanding with the Maritime Administration (“MarAd”). MarAd contracted with Integrated Concepts and Research Corporation (“ICRC”) to perform certain design and construction-related work on the project. In 2006, ICRC subcontracted certain project design work to PND Engineers, Inc. (“PND”). In 2006, PND subcontracted some limited portions of its work to VECO, Inc. (n/k/a CH2M HILL Alaska, Inc.). During the design phase, PND’s proprietary design, the Open Cell Sheet Pile system (“OCSP”) was recommended as the preferred design alternative on the project. VECO issued two documents, one in 2006 and one in 2007. On March 8, 2013, the Municipality filed suit against ICRC, PND, and CH2M HILL Alaska, Inc. in the Superior Court for the State of Alaska, Third Judicial District at Anchorage. Four additional parties (GeoEngineers, Inc.; Terracon Consultants, Inc.; Colaska, Inc.; and MKB Constructors) were later added to the litigation. The matter was later transferred to the United States District Court for the District of Alaska. The Municipality alleges the project suffered from design and construction deficiencies. The Municipality’s claims against CH2M HILL Alaska, Inc. ultimately included claims for professional negligence, negligence, and negligent misrepresentation. The Court issued a ruling on October 31, 2016, granting CH2M HILL Alaska, Inc.’s motion for summary judgment as to negligence, negligent misrepresentation, and the portion of the professional negligence claim relating to VECO’s 2007 report. The Municipality currently claims that its damages against all defendants are approximately $312.0 million. The Municipality has reached settlements with Terracon Consultants, Inc.; Colaska, Inc.; and MKB Constructors. Trial is scheduled to begin in April 2017. The Municipality has also filed suit against MarAd in the Court of Federal Claims related to the Project. Based on information presently known to management, we intend to vigorously defend the claims brought against us, and we believe that the outcome of this dispute will not have a material adverse effect on our financial condition, cash flows or results of operations.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	(15) Subsequent Events On October 4, 2016, Halcrow Group Limited (“HGL”), a subsidiary of CH2M, effected a transaction to restructure the benefits provided to members of the Halcrow Pension Scheme (“HPS”), a defined benefit plan sponsored by HGL, by providing each member with the option to transfer his or her benefits in the HPS to a new pension scheme, which is also sponsored by HGL (“HPS2”). Alternatively, members had the option to remain in the HPS which will enter the Pension Protection Fund (“PPF”) under a regulated apportionment arrangement. The new scheme, HPS2, provides benefits that are better than the compensation that would otherwise be paid by the PPF if a member chose to join the PPF rather than HPS2. The PPF was created by the United Kingdom Pensions Act 2004 to provide compensation to members of eligible defined benefit pension schemes when an employer of the scheme can no longer support the pension scheme. A member that transferred to HPS2 received identical benefits to those in the HPS, except that annual increases and revaluation of benefits are reduced to statutory levels. A pension scheme member that elected to transfer to the new scheme also received a one-time uplift to benefits of either 1.0% or 2.5%. The Pension Regulator, which is the United Kingdom’s executive body that regulates work-based pension schemes, and the PPF provided necessary regulatory approvals for the transaction to restructure the HPS benefits. Once the transaction described above became effective on October 4, 2016, HGL ceased to have any further obligations to the HPS. All members who consented to transfer to HPS2 were transferred on October 5, 2016. Members who agreed to transfer to the new scheme account for 96.6% of the HPS’ liabilities and a broadly equivalent proportion of the HPS’ assets have transferred to the new scheme, as well as 20% of HGL’s equity issued as part of the transaction. It is anticipated that those members who remained in the HPS will begin the process of transferring to the PPF during the fourth quarter of 2016 along with the assets that remain in the HPS, as well as 5% of HGL’s equity issued as part of the transaction. Additionally, in connection with the transaction, CH2M issued a £50.0 million, approximately $65.0 million as of September 30, 2016, parent company guarantee to support HPS2 and funded £80.0 million, approximately $104.0 million as of September 30, 2016, to be allocated between HPS2 and the PPF based on the proportion of the HPS’ members that transferred to HPS2. The table below shows the estimated pro forma impact of the transaction as described above to our consolidated balance sheet as if the transaction had been effective as of September 30, 2016: As Stated Pro Forma Impact of September 30, September 30, Pension ($ in thousands) 2016 2016 Restructuring Liabilities: Long-term employee related liabilities $ $ $ Stockholders’ equity: Accumulated other comprehensive loss (income) Additional paid-in capital Noncontrolling interest $ $ $ In addition to the impacts on our consolidated balance sheet, we will incur a $7.6 million loss related to the partial settlement of the defined benefit pension plan for those members of HPS that transferred into the PPF. Subsequent to the transaction, we expect to have $4.9 million of net periodic pension expense, inclusive of the loss related to the partial settlement, related to the HPS2 for the fourth quarter of 2016.

Summary of Business and Signi23

Summary of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
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 Amendment No. 1 on Form 10-K/A for the year ended December 25, 2015.
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, subcontractor costs, 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 four 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, plus a fixed fee or an award fee. We generally recognize revenue based on the labor 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. The significance of these estimates varies with the complexity of the underlying project, with our large, fixed-price EPC projects being most significant. 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. Additional contract revenue related to claims is included in total estimated contract revenue when the amount can be reliably estimated, which is typically evidenced by a contract or other evidence providing a legal basis for the claim. 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.
Accounts Receivable	Accounts Receivable We reduce accounts receivable by estimating an allowance for amounts that may become uncollectible in the future. Management determines the estimated allowance for uncollectible amounts based on their judgments in evaluating the aging of the receivables and the financial condition of our clients, which may be dependent on the type of client and the client’s current financial condition.
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 any period presented.
Restructuring and Related Charges	Restructuring and Related Charges 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 current and long-term liability, within other accrued liabilities and other long term liabilities, respectively, and the related expense, within general and administration 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 the FASB ASC Topic 350, Intangibles-Goodwill and Other (“ASC 350”), as amended. Our annual goodwill impairment test is conducted as of the first day of the fourth quarter of each year, however, 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 estimated 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 net replacement cost using current market quotes.
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 other accrued liabilities as applicable. The periodic change in the fair value of the derivative instruments related to our business group operations is recognized in earnings within direct costs. The periodic change in the fair value of the derivative instruments related to our general corporate foreign currency exposure is recognized within selling, 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 HILL Companies, Ltd. Amended and Restated 401(k) Plan which became effective January 1, 2013 (“401(k) Plan”). Effective January 1, 2016, the 401(k) Plan allows for matching contributions up to 58.33% of the first 6% of elective deferrals up to 6% of the employee’s quarterly 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 30, 2016 were $8.3 million and $21.3 million, respectively, compared to $3.8 million and $16.3 million for the three and nine months ended September 25, 2015.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In October 2016, the FASB issued Accounting Standard Update ("ASU") 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control . This standard amends the guidance issued with ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis in order to make it less likely that a single decision maker would individually meet the characteristics to be the primary beneficiary of a Variable Interest Entity ("VIE"). When a decision maker or service provider considers indirect interests held through related parties under common control, they perform two steps. The second step was amended with this ASU to say that the decision maker should consider interests held by these related parties on a proportionate basis when determining the primary beneficiary of the VIE rather than in their entirety as was called for in the previous guidance. This ASU will be effective for fiscal years beginning after December 15, 2016, and early adoption is not permitted. We are currently evaluating the impact of the adoption of this ASU on our financial position and results of operations. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU was issued with the objective to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The new standard will require companies to recognize the income tax consequences of an intra-entity transfer of non-inventory asset when the transfer occurs. This ASU will be effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU on our financial position and results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance for eight specific changes with respect to how certain cash receipts and cash payments are classified within the statement of cash flows in order to reduce existing diversity in practice. This ASU will be effective for fiscal years beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impacts the adoption of this standard will have on our consolidated statements of cash flows. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payments Accounting . During the three months ended September 30, 2016, the Company elected to early adopt ASU 2016-09 with an effective date of December 26, 2015. As a result, for the nine months ended September 30, 2016, the Company recognized the excess tax benefit of $3.1 million within income tax benefit on the consolidated statements of operations, adopted prospectively, and previously unrecognized excess tax benefits of $11.1 million resulted in a cumulative-effect adjustment to retained earnings. The adoption did not impact the existing classification of awards. Excess tax benefits from stock-based compensation of $3.9 million for the nine months ended September 25, 2015 was restated into cash flows from operating activities from cash flows from financing activity. Additionally, adopted retrospectively, the Company reclassified $3.7 million and $4.3 million of employee withholding taxes paid from operating activities into financing activities for the nine months ended September 30, 2016 and September 25, 2015, respectively. Following the adoption of the standard, the Company elected to continue estimating the number of awards expected to be forfeited and adjust its estimate on an ongoing basis. In February 2016, the FASB issued ASU 2016-02, Leases . This ASU is a comprehensive new leases standard that was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We continue to assess the impact of adopting ASU 2016-02, but expect to record a significant amount of right-of-use assets and corresponding liabilities based upon our current operating leases. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities . The amendments issued with this ASU require equity securities (including other ownership interests, such as partnerships, unincorporated joint ventures, and limited liability companies) to be measured at fair value with changes in the fair value recognized through net income. An entity’s equity investments that are accounted for under the equity method of accounting or result in consolidation of an investee are not included within the scope of this update. This ASU will be effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods, with early adoption permitted. We believe this standard’s impact on CH2M will be limited to equity securities currently accounted for under the cost method of accounting, which as of September 30, 2016 are valued at $3.5 million within investments in unconsolidated affiliates on the consolidated balance sheet. We do not expect the adoption of this standard to have a material impact on our consolidated statements of operations. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes . The ASU simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets are classified as noncurrent in a classified statement of financial position. This simplification does not affect the current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount. This ASU is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. We have elected to early adopt this ASU as of December 26, 2015 in order to benefit from the simplification of the deferred income tax balance sheet presentation. We have applied the change in accounting principle retrospectively resulting in a total long-term deferred tax asset of $255.4 million as of December 25, 2015, which had previously been reported as a current deferred tax asset of $8.7 million and a long-term deferred tax asset of $246.7 million. 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 reporting periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and subsequently modified with various amendments and clarifications. 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. This ASU, as amended, is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. 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, the subsequently issued amendments, and the transition alternatives on its financial position and results of operations. We have begun categorizing our various contract revenue streams in order to isolate those that will be significantly impacted. Once we have identified the impacted revenue streams, we can begin estimating the potential impact of the new standard as well as identify necessary control and process changes.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Information
Schedule of financial information related to segments	Three Months Ended September 30, 2016 Three Months Ended September 25, 2015 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Energy and Industrial $ $ $ $ $ $ Environment and Nuclear Transportation Water Power EPC — — Total $ $ $ $ $ $ Nine Months Ended September 30, 2016 Nine Months Ended September 25, 2015 Gross Equity in Operating Gross Equity in Operating ($ in thousands) Revenue Earnings Income (Loss) Revenue Earnings Income (Loss) Energy and Industrial $ $ $ $ $ $ Environment and Nuclear Transportation Water Power EPC — — Total $ $ $ $ $ $

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders’ Equity
Schedule of changes in stockholders' equity	Common Preferred (in thousands) Shares Shares Amount Stockholders’ equity, December 25, 2015 $ Cumulative retained earnings adjustment related to adoption of ASU 2016-09 Restated stockholders’ equity, December 26, 2015 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 loss attributable to CH2M — — Other comprehensive income, net of tax — — Loss attributable to noncontrolling interests — — Acquisition of controlling interest in joint venture — — Investment in affiliates, net — — Stockholders’ equity, September 30, 2016 $

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share
Summary of reconciliations of basic and diluted EPS	Three Months Ended Nine Months Ended September 30, September 25, September 30, September 25, (in thousands, except per share amounts) 2016 2015 2016 2015 Numerator - basic and diluted: Net (loss) income $ $ $ $ Less: loss (income) attributable to noncontrolling interests Net income attributable to CH2M Less: accrued dividends attributable to preferred stockholders Less: income allocated to preferred stockholders - basic — Income (loss) available to common stockholders - basic and 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 (loss) income per common share $ $ $ $ Diluted net (loss) income per common share $ $ $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill and Intangible Assets
Schedule of changes in goodwill by segment	($ in thousands) Environment and Nuclear Energy and Industrial Transportation Water Consolidated Total Balance as of December 25, 2015 $ $ $ $ $ Acquisitions — Foreign currency translation — Balance as of September 30, 2016 $ $ $ $ $
Schedule of changes in intangible assets by segment	($ in thousands) Environment and Nuclear Transportation Water Consolidated Total Balance as of December 25, 2015 $ $ $ $ Amortization Foreign currency translation Balance as of September 30, 2016 $ $ $ $
Schedule of components of finite-lived intangible assets	Accumulated Net finite-lived ($ in thousands) Cost Amortization intangible assets September 30, 2016 Customer relationships $ $ $ Tradename - Total finite-lived intangible assets $ $ $ December 25, 2015 Customer relationships $ $ $ Tradename Total finite-lived intangible assets $ $ $
Schedule of future estimated amortization expense related to these intangible assets	Amortization ($ in thousands) Expense 2016 (three months remaining) $ 2017 2018 2019 2020 2021 Thereafter $

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment
Schedule of property, plant and equipment	September 30, December 25, ($ in thousands) 2016 2015 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 Instr29

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value of Financial Instruments
Schedule of estimated fair values of financial instruments where carrying values do not approximate fair value	September 30, 2016 December 25, 2015 Carrying Fair Carrying Fair ($ in thousands) Amount Value Amount Value Equipment financing $ $ $ $ Note payable by consolidated joint venture $ $ $ — —
Schedule of unrealized and realized gains and losses due to changes in derivative fair values	Three Months Ended Nine Months Ended September 30, September 25, September 30, September 25, (in thousands) 2016 2015 2016 2015 Unrealized gain from changes in derivative fair values $ $ $ $ Realized loss from changes in derivative fair values $ $ $ $

Line of Credit and Long-Term 30

Line of Credit and Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Line of Credit and Long-Term Debt
Schedule of nonrecourse and other long-term debt	September 30, December 25, ($ in thousands) 2016 2015 Revolving Credit Facility, average rate of interest of 3.4% $ $ Equipment financing, due in monthly installments to September 2021, secured by equipment. These notes bear interest ranging from 0.22% to 3.29% Note payable by consolidated joint venture, due July 2019. This note bears interest at 6-month LIBOR plus 2.5% — Other notes payable Total debt Less: current portion of debt Total long-term portion of debt $ $

Restructuring and Related Cha31

Restructuring and Related Charges (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Charges
Schedule of restructuring charges	2014 Restructuring Plan 2016 Restructuring Plan ($ in thousands) Employee Severance and Termination Benefits Facilities Cost Other Employee Severance and Termination Benefits Other Consolidated Total Balance, December 25, 2015 $ $ $ $ — $ — $ Provision — — — Cash payments Balance, September 30, 2016 $ $ $ — $ — $ — $

Defined Benefit Plans and Oth32

Defined Benefit Plans and Other Postretirement Benefits (Tables)	9 Months Ended
	Sep. 30, 2016
Pension Plans
Pension and Other Postretirement Benefits
Schedule of components of the net periodic pension (income) expense	Three Months Ended September 30, 2016 September 25, 2015 U.S. Non-U.S. U.S. Non-U.S. ($ in thousands) Pension Plans Pension Plans Pension Plans Pension Plans Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service credits — — Recognized net actuarial loss Gain on curtailment — — — Net (income) expense included in current income $ $ $ $ Nine Months Ended September 30, 2016 September 25, 2015 U.S. Non-U.S. U.S. Non-U.S. ($ in thousands) Pension Plans Pension Plans Pension Plans Pension Plans Service cost $ $ $ $ Interest cost Expected return on plan assets Amortization of prior service credits — — Recognized net actuarial loss Gain on curtailment — — — Net expense included in current income $ $ $ $
Postretirement Benefit Plans
Pension and Other Postretirement Benefits
Schedule of components of the net periodic pension (income) expense	Three Months Ended September 30, 2016 September 25, 2015 Non-Qualified Postretirement Non-Qualified Postretirement ($ in thousands) Pension Plan Benefit Plans Pension Plan Benefit Plans Service cost $ — $ $ — $ Interest cost Amortization of prior service (credits) costs — — Recognized net actuarial loss (gain) — Net expense included in current income $ $ $ $ Nine Months Ended September 30, 2016 September 25, 2015 Non-Qualified Postretirement Non-Qualified Postretirement ($ in thousands) Pension Plan Benefit Plans Pension Plan Benefit Plans Service cost $ — $ $ — $ Interest cost Amortization of prior service (credits) costs — — Recognized net actuarial loss (gain) — Net expense included in current income $ $ $ $

Subsequent Events (Tables)

Subsequent Events (Tables)	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Schedule of pro forma impact of pension restructuring	As Stated Pro Forma Impact of September 30, September 30, Pension ($ in thousands) 2016 2016 Restructuring Liabilities: Long-term employee related liabilities $ $ $ Stockholders’ equity: Accumulated other comprehensive loss (income) Additional paid-in capital Noncontrolling interest $ $ $

Summary of Business and Signi34

Summary of Business and Significant Accounting Policies (FV, Intangibles,AFS) (Details)	9 Months Ended
	Sep. 30, 2016contract
Revenue Recognition
Number of types of contracts which may earn revenue	4
Maximum
Intangible assets
Useful lives of intangible assets	10 years

Summary of Business and Signi35

Summary of Business and Significant Accounting Policies Matching Contributions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015
Retirement and Tax-Deferred Savings Plan
Employer matching contributions (as a percent)			58.33%
Elective deferrals (as a percent)			6.00%
Maximum employer match to the 401(k) Plan (as a percent)			6.00%
Expenses related to matching contributions and defined contributions made in common stock for the 401(k) Plan	$ 8.3	$ 3.8	$ 21.3	$ 16.3

Summary of Business and Signi36

Summary of Business and Significant Accounting Policies (Acctg Policies) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Dec. 25, 2015
Recently Adopted Accounting Standards
Excess tax benefits from stock-based compensation, operating	$ 3,093	$ 3,931
Unrecognized excess tax benefits	11,100
Settlement of tax-withholding obligation on stock-based compensation	3,720	4,339
Equity securities currently accounted for under the cost method of accounting	3,500
Deferred tax asset, noncurrent	414,847		$ 255,385
Previously reported
Recently Adopted Accounting Standards
Deferred tax asset, noncurrent			246,700
Deferred tax asset, current			$ 8,700
Income tax expense (benefit)
Recently Adopted Accounting Standards
Excess tax benefits from stock-based compensation, operating	3,100
Adjustments for New Accounting Principle, Early Adoption | Accounting Standards Update 2016-09
Recently Adopted Accounting Standards
Excess tax benefits from stock-based compensation, operating		3,900
Excess tax benefits from stock-based compensation, financing		(3,900)
Settlement of tax-withholding obligation on stock-based compensation	3,700	4,300
Settlement of tax-withholding obligation on stock-based compensation, operating	$ (3,700)	$ (4,300)

Changes in Project-Related Es37

Changes in Project-Related Estimates (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Jun. 24, 2016	Jun. 26, 2015	Sep. 25, 2015	Dec. 31, 2014	Dec. 25, 2015
Other accrued liabilities
Changes in project-related estimates
Reserves for project related losses	$ 223					$ 152.6
Fixed Price Contract | Southwestern United States
Changes in project-related estimates
Percentage of completion of the project	66.00%
Charge to operations due to changes in cost estimates	$ 65.6	$ 60	$ 2.5	$ 74.1
Change orders and claims	84
Fixed Price Contract | Australia
Changes in project-related estimates
Entity's portion of loss recorded					$ 140
Entity's portion of increased project costs	58.8	95.3
Contract with Noncontrolling Joint Venture Partner | Other accrued liabilities
Changes in project-related estimates
Reserves for project related losses attributable to the noncontrolling interest	$ 60.8					$ 44.4
Corporate Joint Venture | Fixed Price Contract | Australia
Changes in project-related estimates
Percentage of completion of the project	75.00%
Charge to operations due to changes in cost estimates	$ 111	$ 190.5
Total contract value of the project allocated to the joint venture	$ 550.8

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 25, 2015USD ($)	Sep. 30, 2016USD ($)segment	Sep. 25, 2015USD ($)
Segment information
Number of reportable operating segments | segment			4
Gross revenue	$ 1,279,230	$ 1,365,186	$ 3,872,921	$ 3,949,320
Direct cost of services	1,189,167	1,096,008	3,497,257	3,190,539
Equity in earnings of joint ventures and affiliated companies	26,877	14,890	44,647	36,908
Operating income (loss)	(108,350)	63,822	(272,604)	116,070
Energy and Industrial
Segment information
Gross revenue	211,056	288,877	673,073	880,757
Equity in earnings of joint ventures and affiliated companies	3,004	792	3,804	1,624
Operating income (loss)	$ (2,574)	5,028	2,212	25,438
Environmental and Nuclear
Segment information
Period of time for reporting lag eliminated	1 month
Gross revenue	$ 558,654	421,860	1,604,634	1,177,061
Equity in earnings of joint ventures and affiliated companies	5,486	9,174	16,447	23,850
Operating income (loss)	28,557	20,739	68,343	61,642
Environmental and Nuclear | Adjustment
Segment information
Gross revenue	51,700		51,700
Direct cost of services	51,700		51,700
Operating income (loss)	0		0
Transportation
Segment information
Gross revenue	234,509	250,497	705,179	722,202
Equity in earnings of joint ventures and affiliated companies	3,114	2,563	7,878	6,579
Operating income (loss)	(57,996)	5,237	(114,466)	(49,842)
Water
Segment information
Gross revenue	298,390	342,744	897,698	1,036,965
Equity in earnings of joint ventures and affiliated companies	15,273	2,361	16,518	4,855
Operating income (loss)	30,957	24,804	70,872	73,716
Power EPC
Segment information
Gross revenue	(23,379)	61,208	(7,663)	132,335
Operating income (loss)	$ (107,294)	$ 8,014	$ (299,565)	$ 5,116

Stockholders' Equity (Equity St

Stockholders' Equity (Equity Stmt) (Details) $ / shares in Units, $ in Thousands	Apr. 11, 2016USD ($)shares	Dec. 26, 2015USD ($)shares	Jun. 24, 2015USD ($)shares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 25, 2015USD ($)	Sep. 30, 2016USD ($)item$ / sharesshares	Sep. 25, 2015USD ($)	Dec. 25, 2015$ / sharesshares	Jun. 22, 2015$ / sharesshares
Stockholders Equity
Stockholders' equity beginning of period		$ 377,331				$ 377,331
Shares purchased and retired						(103,911)
Shares issued in connection with stock-based compensation and employee benefit plans						28,952
Series A Preferred Stock, net of issuance costs						99,800
Net income attributable to CH2M				$ 15,933	$ 39,445	(21,530)	$ 66,693
Other comprehensive loss, net of tax				(26,301)	(14,708)	(10,466)	(22,318)
Loss attributable to noncontrolling interests				(49,582)	$ 9,060	(142,585)	12,423
Acquisition of controlling interest in joint venture						6,057
Investment in affiliates, net						74,554
Stockholders' equity end of period		388,409		$ 319,280		$ 319,280
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						$ 99,800	$ 191,677
Previously reported
Stockholders Equity
Stockholders' equity beginning of period		377,331				$ 377,331
Adjustments for New Accounting Pronouncement | Accounting Standards Update 2016-09
Stockholders Equity
Cumulative retained earnings adjustment related to adoption of ASU 2016-09		$ 11,078
Common Shares
Stockholders Equity
Shares purchased and retired (in shares) | shares						(1,691,000)
Shares issued in connection with stock-based compensation and employee benefit plans (in shares) | shares						440,000
Stockholders' equity, end of period (in shares) | shares		26,283,000		25,032,000		25,032,000
Common Shares | Previously reported
Stockholders Equity
Stockholders' equity, beginning of period, (in shares) | shares		26,283,000				26,283,000
Series A Preferred Stock
Stockholders Equity
Series A Preferred Stock, net of issuance costs (in shares) | shares						1,608,000
Stockholders' equity, end of period (in shares) | shares		3,214,000		4,822,000		4,822,000
Preferred stock, shares authorized | shares				10,000,000		10,000,000		10,000,000	10,000,000
Original issue price of share (in dollars per share) | $ / shares									$ 62.22
Annual dividend rate						5.00%
Conversion price (in dollars per share) | $ / shares						$ 62.22
Series A Preferred Stock | Maximum
Stockholders Equity
Redemption price of preferred stock				$ 600,000		$ 600,000
Series A Preferred Stock | Minimum
Stockholders Equity
Threshold for conversion						200,000
Authorized amount for investment				$ 100,000		$ 100,000
Series A Preferred Stock | Plan
Stockholders Equity
Number of installments for stock redemption | item						1
Series A Preferred Stock | Plan | Sale Recommended Stockholders Not Approve
Stockholders Equity
Conversion price (in dollars per share) | $ / shares						$ 52.65
Series A Preferred Stock | Plan | Recommended Sale And Certain Other Actions To Facilitate Initial Public Offering Not Approved
Stockholders Equity
Conversion price (in dollars per share) | $ / shares						$ 47.86
Series A Preferred Stock | Plan | Maximum
Stockholders Equity
Annual dividend rate						15.00%
Series A Preferred Stock | Plan | Minimum
Stockholders Equity
Annual dividend rate						10.00%
Series A Preferred Stock | Previously reported
Stockholders Equity
Stockholders' equity, beginning of period, (in shares) | shares		3,214,000				3,214,000
Series A Preferred Stock | Apollo Global Management, LLC
Stockholders Equity
Series A Preferred Stock, net of issuance costs	$ 100,000		$ 200,000
Series A Preferred Stock, net of issuance costs (in shares) | shares	1,607,200		3,214,400
Proceeds from the issuance of preferred stock, net of issuance costs	$ 99,800		$ 191,700
Issuance cost	$ 200		$ 8,300
Series A Preferred Stock | Apollo Global Management, LLC | Maximum
Stockholders Equity
Consolidated leverage ratio						3

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015
Earnings Per Share
Period for aggregate contractual obligation				5 years
Numerator - basic and diluted:
Net (loss) income		$ (33,649)	$ 48,505	$ (164,115)	$ 79,116
Less: loss (income) attributable to noncontrolling interests		49,582	(9,060)	142,585	(12,423)
Net income attributable to CH2M		15,933	39,445	(21,530)	66,693
Less: accrued dividends attributable to preferred stockholders		3,891	2,501	10,067	2,556
Less: income allocated to preferred stockholders - basic		1,984	3,913		2,502
Net income (loss) available to common stockholders - basic and diluted		$ 10,058	$ 33,031	$ (31,597)	$ 61,635
Denominators:
Weighted-average common shares outstanding - basic		25,356,689	27,139,832	25,816,819	27,281,219
Dilutive effect of common stock equivalents (in shares)		32,000	59,000		16,000
Diluted adjusted weighted-average common shares outstanding, assuming conversion of common stock equivalents (in shares)		25,389,138	27,198,832	25,816,819	27,297,219
Basic net (loss) income per common share	[1]	$ 0.40	$ 1.22	$ (1.22)	$ 2.26
Diluted net (loss) income per common share	[1]	$ 0.40	$ 1.22	$ (1.22)	$ 2.26
[1]	Represents net (loss) income attributable to CH2M less (i) income allocated to preferred stockholders of $1,984 for the three months ended September 30, 2016 and $3,913 and $2,502 for the three and nine months ended September 25, 2015, respectively, and (ii) accrued dividends attributable to preferred stockholders of $3,891 and $10,067 for the three and nine months ended September 30, 2016, respectively, and $2,501 and $2,556 for the three and nine months ended September 25, 2015, respectively

Earnings Per Share (Antidilutiv

Earnings Per Share (Antidilutive) (Details) - Options - shares shares in Millions	3 Months Ended	9 Months Ended
	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015
Common Stock
Earnings Per Share
Potentially dilutive stock equivalents not included in the calculation of diluted EPS because to do so would be antidilutive (in shares)	1	2.6	1
Preferred Stock
Earnings Per Share
Potentially dilutive stock equivalents not included in the calculation of diluted EPS because to do so would be antidilutive (in shares)		5.1

Variable Interest Entities an42

Variable Interest Entities and Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015	Dec. 25, 2015
Variable interest entities
Gross revenue	$ 1,279,230	$ 1,365,186	$ 3,872,921	$ 3,949,320
Investments in unconsolidated affiliates	73,496		73,496		$ 84,296
Total assets of joint ventures not consolidated	2,829,325		2,829,325		2,861,299
Total liabilities of joint ventures not consolidated	2,510,045		2,510,045		2,483,968
Consolidated
Variable interest entities
Total assets of joint ventures consolidated	415,600		415,600		224,600
Total liabilities of joint ventures consolidated	552,000		552,000		289,300
Unconsolidated
Variable interest entities
Investments in unconsolidated affiliates	73,500		73,500		84,300
Total assets of joint ventures not consolidated	372,900		372,900		389,600
Total liabilities of joint ventures not consolidated	$ 297,100		$ 297,100		$ 304,900

Goodwill and Intangible Asset43

Goodwill and Intangible Assets (Details) $ in Millions	Sep. 06, 2016USD ($)item
Goodwill and Intangible Assets
Number of joint ventures entity acquired a controlling interest | item	1
Payment to acquire a controlling interest in a joint venture	$ 6.3
Payment to acquire a controlling interest in a joint venture, net of cash acquired	2.1
Gain on fair value remeasurement for joint venture	$ 15

Goodwill and Intangible Asset44

Goodwill and Intangible Assets (Goodwill Segment) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016USD ($)
Changes in goodwill
Balance at beginning of year	$ 510,985
Acquisitions	31,266
Foreign currency translation	(42,887)
Balance at end of year	499,364
Environmental and Nuclear
Changes in goodwill
Balance at beginning of year	64,764
Foreign currency translation	(1,230)
Balance at end of year	63,534
Energy and Industrial
Changes in goodwill
Balance at beginning of year	93,242
Acquisitions	5,003
Balance at end of year	98,245
Transportation
Changes in goodwill
Balance at beginning of year	281,520
Acquisitions	2,814
Foreign currency translation	(33,252)
Balance at end of year	251,082
Water
Changes in goodwill
Balance at beginning of year	71,459
Acquisitions	23,449
Foreign currency translation	(8,405)
Balance at end of year	$ 86,503

Goodwill and Intangible Asset45

Goodwill and Intangible Assets (Intangible Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015
Changes in intangibles
Balance at beginning of year			$ 59,011
Amortization	$ (4,400)	$ (6,200)	(13,924)	$ (19,700)
Foreign currency translation			(1,176)
Balance at end of year	43,911		43,911
Environmental and Nuclear
Changes in intangibles
Balance at beginning of year			30,096
Amortization			(3,489)
Foreign currency translation			1,399
Balance at end of year	28,006		28,006
Transportation
Changes in intangibles
Balance at beginning of year			22,731
Amortization			(8,148)
Foreign currency translation			(1,955)
Balance at end of year	12,628		12,628
Water
Changes in intangibles
Balance at beginning of year			6,184
Amortization			(2,287)
Foreign currency translation			(620)
Balance at end of year	$ 3,277		$ 3,277

Goodwill and Intangible Asset46

Goodwill and Intangible Assets (Amortization) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015	Dec. 25, 2015
Finite-lived intangible assets
Cost	$ 182,536		$ 182,536		$ 192,079
Accumulated Amortization	(138,625)		(138,625)		(133,068)
Amortization expense	4,400	$ 6,200	13,924	$ 19,700
Future estimated amortization expense of intangible assets
2016 (three months remaining)	4,374		4,374
2,017	16,333		16,333
2,018	4,313		4,313
2,019	3,580		3,580
2,020	3,580		3,580
2,021	3,580		3,580
Thereafter	8,151		8,151
Net finite-lived intangible assets	43,911		$ 43,911		59,011
Minimum
Finite-lived intangible assets
Useful lives of intangible assets			2 years
Maximum
Finite-lived intangible assets
Useful lives of intangible assets			10 years
Customer relationships
Finite-lived intangible assets
Cost	178,492		$ 178,492		187,580
Accumulated Amortization	(134,581)		(134,581)		(128,655)
Future estimated amortization expense of intangible assets
Net finite-lived intangible assets	43,911		43,911		58,925
Tradename
Finite-lived intangible assets
Cost	4,044		4,044		4,499
Accumulated Amortization	$ (4,044)		$ (4,044)		(4,413)
Future estimated amortization expense of intangible assets
Net finite-lived intangible assets					$ 86

Property, Plant and Equipment47

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015	Dec. 25, 2015
Property, plant and equipment
Property, plant and equipment, gross	$ 519,604		$ 519,604		$ 460,838
Less: Accumulated depreciation	(265,549)		(265,549)		(257,172)
Net property, plant and equipment	254,055		254,055		203,666
Depreciation expense	10,900	$ 11,100	33,900	$ 35,900
Land
Property, plant and equipment
Property, plant and equipment, gross	5,021		5,021		5,021
Building and land improvements
Property, plant and equipment
Property, plant and equipment, gross	106,959		106,959		67,631
Furniture and fixtures
Property, plant and equipment
Property, plant and equipment, gross	27,356		27,356		25,332
Computer and office equipment
Property, plant and equipment
Property, plant and equipment, gross	166,490		166,490		158,399
Field equipment
Property, plant and equipment
Property, plant and equipment, gross	134,594		134,594		138,721
Leasehold improvements
Property, plant and equipment
Property, plant and equipment, gross	$ 79,184		$ 79,184		$ 65,734

Fair Value of Financial Instr48

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 25, 2015
Carrying Amount
Carrying value and estimated fair value of financial instruments
Equipment financing	$ 8,674	$ 8,594
Notes payable by consolidated joint venture	2,533
Fair Value | Level 2
Carrying value and estimated fair value of financial instruments
Equipment financing	8,258	$ 8,056
Notes payable by consolidated joint venture	$ 2,297

Fair Value of Financial Instr49

Fair Value of Financial Instruments Foreign Exchange Contracts (Details) - Forward foreign exchange contracts $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)instrument	Sep. 25, 2015USD ($)	Sep. 30, 2016USD ($)instrument	Sep. 25, 2015USD ($)
Derivative financial instruments
Number of instruments that extend beyond one and five years | instrument	0		0
Derivative assets	$ 100		$ 100
Selling, general and administrative expense.
Derivative financial instruments
Unrealized gain from changes in derivative fair values	46	$ 1,001	223	$ 220
Realized loss from changes in derivative fair values	$ (2,262)	$ (6,445)	$ (5,038)	$ (10,473)
Maximum
Derivative financial instruments
Term of forward foreign exchange contracts			1 year

Line of Credit and Long-Term 50

Line of Credit and Long-Term Debt (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 25, 2015	Sep. 29, 2016
Long-term debt
Total debt	$ 422,693	$ 301,662
Less: current portion of debt	2,224	2,069
Total long-term portion of debt	420,469	$ 299,593
Revolving Credit Facility
Line of credit
Maximum borrowing capacity	925,000		$ 1,100,000
Maximum available for the issuance of standby letters of credit after amendment	500,000
Maximum subfacility available for multicurrency borrowings	300,000
Maximum available for swingline loans	50,000
Additional borrowing capacity, option to increase	200,000
Cap on entity repurchase of its common stock in connection with employee stock ownership program, three quarter period ending March 31, 2017	75,000
Cap on entity repurchase of its common stock in connection with employee stock ownership program during rolling four-quarter period	$ 100,000
Cap on percentage of EBITDA for payment of dividends	10.00%
Remaining unused borrowing capacity available under the credit facility	$ 194,300
Long-term debt
Average rate of interest (as a percent)	3.40%	3.40%
Total debt	$ 411,274	$ 292,783
Revolving Credit Facility | Letters of credit and bank guarantee facilities
Line of credit
Amount outstanding under letters of credit, and bank guarantee facilities	132,200	145,500
Equipment financing
Long-term debt
Total debt	$ 8,674	$ 8,594
Equipment financing | Minimum
Long-term debt
Interest rate (as a percent)	0.22%	0.22%
Equipment financing | Maximum
Long-term debt
Interest rate (as a percent)	3.29%	3.29%
Notes payable by consolidated joint venture
Long-term debt
Percentage points added to reference rate	2.50%	2.50%
Total debt	$ 2,533
Other notes payable
Long-term debt
Total debt	$ 212	$ 285

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 25, 2015	Sep. 30, 2016	Sep. 25, 2015	Dec. 25, 2015
Income taxes
Effective tax rate (as a percent)	125.50%	23.80%	84.60%	27.80%
Deferred income tax benefit	$ 46,100
Excess tax benefits from stock-based compensation, operating			$ 3,093	$ 3,931
Unrecognized excess tax benefits	11,100		11,100
Undistributed earnings of foreign subsidiaries	471,400		471,400		$ 341,800
Liability for uncertain tax positions and accrued interest	53,900		53,900		38,500
Accrued interest and penalties related to uncertain tax positions	$ 3,200		$ 3,200		$ 3,000

Restructuring and Related Cha52

Restructuring and Related Charges (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 25, 2015USD ($)	Sep. 30, 2016USD ($)item	Sep. 25, 2015USD ($)
Restructuring charges
Number of months the remaining provisions for employee and severance and termination benefits will be paid | item			12
Restructuring reserve
Balance, beginning of the period			$ 32,356
Provision			4,421
Cash payments			(17,345)
Balance, end of the period	$ 19,432		19,432
2014 Restructuring Plan | Employee Severance and Termination Benefits
Restructuring reserve
Balance, beginning of the period			8,003
Cash payments			(6,235)
Balance, end of the period	1,768		1,768
2014 Restructuring Plan | Facility Costs
Restructuring reserve
Balance, beginning of the period			23,383
Cash payments			(5,719)
Balance, end of the period	17,664		17,664
2014 Restructuring Plan | Other
Restructuring reserve
Balance, beginning of the period			970
Cash payments			(970)
2016 Restructuring Plan | Minimum
Restructuring charges
Additional restructuring charges expected	50,000		50,000
Aggregate expected annual cost savings			90,000
2016 Restructuring Plan | Maximum
Restructuring charges
Additional restructuring charges expected	70,000		70,000
Aggregate expected annual cost savings			100,000
2016 Restructuring Plan | Employee Severance and Termination Benefits
Restructuring reserve
Provision			3,434
Cash payments			(3,434)
2016 Restructuring Plan | Other
Restructuring reserve
Provision			987
Cash payments			(987)
Selling, general and administrative expense. | 2014 Restructuring Plan
Restructuring charges
Incurred costs for restructuring activities		$ 8,200		$ 25,800
Selling, general and administrative expense. | 2016 Restructuring Plan
Restructuring charges
Incurred costs for restructuring activities	$ 4,400		$ 4,400

Defined Benefit Plans and Oth53

Defined Benefit Plans and Other Postretirement Benefits (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 25, 2015USD ($)	Sep. 30, 2016USD ($)plan	Sep. 25, 2015USD ($)	Dec. 25, 2015
Components of the net periodic pension expense
Gain on pension curtailment			$ (4,568)
U.S. Pension Plans
Pension and Other Postretirement Benefits
Number of noncontributory defined benefit pension plans | plan			3
Number of noncontributory defined benefit pension plans that are frozen | plan			2
Number of noncontributory defined benefit pension plans remains active | plan			1
Increase in underfunded status			$ 10,500
Actuarial assumptions used to compute the benefit obligations
Discount rate (as a percent)	3.80%		3.80%		4.90%
Components of the net periodic pension expense
Service cost	$ 672	$ 862	$ 2,014	$ 2,588
Interest cost	2,955	2,811	8,863	8,431
Expected return on plan assets	(2,921)	(3,312)	(8,763)	(9,936)
Amortization of prior service (credits) costs	(188)	(192)	(564)	(574)
Recognized net actuarial loss (gain)	1,627	1,868	4,885	5,598
Gain on pension curtailment	(4,568)		(4,568)
Net (income) expense included in current income	(2,423)	2,037	1,867	6,107
Non-U.S. Pension Plans
Components of the net periodic pension expense
Service cost	1,349	888	4,104	2,647
Interest cost	9,697	11,102	30,661	32,901
Expected return on plan assets	(8,137)	(7,993)	(25,773)	(23,680)
Recognized net actuarial loss (gain)	631	1,002	2,017	2,966
Net (income) expense included in current income	3,540	4,999	11,009	14,834
Non-Qualified Pension Plans
Components of the net periodic pension expense
Interest cost	14	14	40	44
Recognized net actuarial loss (gain)		1		1
Net (income) expense included in current income	14	15	$ 40	45
Employee age required to participate in the plan			65 years
Postretirement Benefit Plans
Components of the net periodic pension expense
Service cost	207	241	$ 619	725
Interest cost	497	525	1,491	1,573
Amortization of prior service (credits) costs	(96)	(8)	(288)	(22)
Recognized net actuarial loss (gain)	(3)	(2)	(9)	(6)
Net (income) expense included in current income	$ 605	$ 756	$ 1,813	$ 2,270

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	9 Months Ended	12 Months Ended		43 Months Ended
	Sep. 30, 2016USD ($)	Dec. 31, 2007item	Dec. 31, 2006item	Sep. 30, 2016USD ($)item	Dec. 25, 2015USD ($)
Insurance Claims
Loss contingencies
Accruals for potential estimated claim liabilities | $	$ 6.7			$ 6.7	$ 11
Municipality
Loss contingencies
Number of documents issued | item		1	1
Number of additional parties added to the litigation | item				4
Value of damages against all defendants | $	$ 312

Subsequent Events (Details)

Subsequent Events (Details) $ in Thousands, £ in Millions	Oct. 05, 2016	Oct. 04, 2016USD ($)	Dec. 30, 2016USD ($)	Sep. 30, 2016GBP (£)	Sep. 30, 2016USD ($)	Sep. 30, 2016USD ($)	Dec. 25, 2015USD ($)
Company contributions				£ 80	$ 104,000
Long-term employee related liabilities						$ 530,651	$ 599,033
Accumulated other comprehensive loss (income)						(285,170)	(274,704)
Additional paid-in capital						151,295	125,381
Noncontrolling interest						(96,828)	$ (34,854)
Pro Forma
Long-term employee related liabilities						312,411
Accumulated other comprehensive loss (income)						(163,819)
Additional paid-in capital						145,691
Noncontrolling interest						(91,181)
Plan
Long-term employee related liabilities						(218,240)
Accumulated other comprehensive loss (income)						121,351
Additional paid-in capital						(5,604)
Noncontrolling interest						5,647
HPS | Forecast
Loss related to partial settlement		$ 7,600
HPS2 | Forecast
Net periodic pension expense			$ 4,900
HPS2 | Guarantee
Guarantee to support HPS2				£ 50		$ 65,000
Subsequent event | HPS
Percentage of equity issued	5.00%
Subsequent event | HPS2
Percentage one-time increase, scenario one		1.00%
Percentage one-time increase, scenario two		2.50%
Percentage of liabilities of members who agreed to transfer	96.60%
Percentage of equity issued	20.00%