Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 29, 2013 | Jan. 27, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'TETRA TECH INC | ' |
Entity Central Index Key | '0000831641 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-28 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 64,950,791 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 29, 2013 | Sep. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $160,796 | $129,305 |
Accounts receivable - net | 642,897 | 660,847 |
Prepaid expenses and other current assets | 51,212 | 61,446 |
Income taxes receivable | 25,346 | 20,044 |
Total current assets | 880,251 | 871,642 |
Property and equipment - net | 83,711 | 88,026 |
Investments in and advances to unconsolidated joint ventures | 2,406 | 2,198 |
Goodwill | 719,527 | 722,792 |
Intangible assets - net | 78,686 | 86,929 |
Other long-term assets | 24,092 | 27,505 |
Total assets | 1,788,673 | 1,799,092 |
Current liabilities: | ' | ' |
Accounts payable | 137,373 | 142,813 |
Accrued compensation | 101,267 | 114,810 |
Billings in excess of costs on uncompleted contracts | 92,179 | 79,507 |
Deferred income taxes | 19,952 | 18,170 |
Current portion of long-term debt | 6,012 | 4,311 |
Estimated contingent earn-out liabilities | 24,380 | 23,281 |
Other current liabilities | 74,216 | 100,241 |
Total current liabilities | 455,379 | 483,133 |
Deferred income taxes | 29,514 | 30,525 |
Long-term debt | 200,859 | 203,438 |
Long-term estimated contingent earn-out liabilities | 56,114 | 58,508 |
Other long-term liabilities | 28,565 | 24,685 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Preferred stock - Authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at December 29, 2013, and September 29, 2013 | ' | ' |
Common stock - Authorized, 150,000 shares of $0.01 par value; issued and outstanding, 64,738 and 64,134 shares at December 29, 2013, and September 29, 2013, respectively | 647 | 641 |
Additional paid-in capital | 456,514 | 443,099 |
Accumulated other comprehensive income (loss) | -19,413 | 1,858 |
Retained earnings | 579,480 | 552,165 |
Tetra Tech stockholders' equity | 1,017,228 | 997,763 |
Noncontrolling interests | 1,014 | 1,040 |
Total equity | 1,018,242 | 998,803 |
Total liabilities and equity | $1,788,673 | $1,799,092 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 29, 2013 | Sep. 29, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ' | ' |
Preferred stock, Authorized shares | 2,000 | 2,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, Authorized shares | 150,000 | 150,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares issued | 64,738 | 64,134 |
Common stock, shares outstanding | 64,738 | 64,134 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Condensed Consolidated Statements of Income | ' | ' |
Revenue | $645,848 | $658,545 |
Subcontractor costs | -162,857 | -161,347 |
Other costs of revenue | -396,528 | -408,995 |
Selling, general and administrative expenses | -47,375 | -46,384 |
Contingent consideration - fair value adjustments | 4,630 | -10 |
Operating income | 43,718 | 41,809 |
Interest expense | -2,424 | -1,185 |
Income before income tax expense | 41,294 | 40,624 |
Income tax expense | -13,967 | -14,228 |
Net income including noncontrolling interests | 27,327 | 26,396 |
Net income attributable to noncontrolling interests | -12 | -172 |
Net income attributable to Tetra Tech | $27,315 | $26,224 |
Earnings per share attributable to Tetra Tech: | ' | ' |
Basic (in dollars per share) | $0.43 | $0.41 |
Diluted (in dollars per share) | $0.42 | $0.41 |
Weighted-average common shares outstanding: | ' | ' |
Basic (in shares) | 64,227 | 63,864 |
Diluted (in shares) | 65,048 | 64,608 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Condensed Consolidated Statements of Comprehensive Income | ' | ' |
Net income including noncontrolling interests | $27,327 | $26,396 |
Other comprehensive income: | ' | ' |
Foreign currency translation adjustments, net of tax | -22,135 | -5,612 |
Gain on cash flow hedge valuations, net of tax | 826 | 121 |
Other comprehensive loss | -21,309 | -5,491 |
Comprehensive income including noncontrolling interests | 6,018 | 20,905 |
Net income attributable to noncontrolling interests | -12 | -172 |
Foreign currency translation adjustments, net of tax | 38 | 13 |
Comprehensive loss (income) attributable to noncontrolling interests | 26 | -159 |
Comprehensive income attributable to Tetra Tech | $6,044 | $20,746 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income including noncontrolling interests | $27,327 | $26,396 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' |
Depreciation and amortization | 15,914 | 12,595 |
Equity in earnings of unconsolidated joint ventures | -650 | -649 |
Distributions of earnings from unconsolidated joint ventures | 364 | 947 |
Stock-based compensation | 2,339 | 2,534 |
Excess tax benefits from stock-based compensation | -213 | -390 |
Deferred income taxes | 557 | 5,624 |
Provision for doubtful accounts | 3,069 | 2,538 |
Fair value adjustments to contingent consideration | -4,630 | 10 |
Foreign exchange (gain) loss | -91 | 189 |
Loss on disposal of property and equipment | 1,035 | 90 |
Changes in operating assets and liabilities, net of effects of business acquisitions: | ' | ' |
Accounts receivable | 19,237 | 25,513 |
Prepaid expenses and other assets | -3,928 | 78 |
Accounts payable | -6,186 | -23,564 |
Accrued compensation | -13,646 | -24,215 |
Billings in excess of costs on uncompleted contracts | 12,671 | 3,544 |
Other liabilities | -7,790 | -124 |
Income taxes receivable/payable | -3,660 | -13,360 |
Net cash provided by operating activities | 41,719 | 17,756 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -6,602 | -4,274 |
Payments for business acquisitions, net of cash acquired | -10,678 | -14,505 |
Payment received on note for sale of operation | 3,900 | ' |
Proceeds from sale of property and equipment | 1,926 | 292 |
Net cash used in investing activities | -11,454 | -18,487 |
Cash flows from financing activities: | ' | ' |
Payments on long-term debt | -233 | -22,551 |
Proceeds from borrowings | ' | 89,234 |
Payments of earn-out liabilities | -1,589 | -22,372 |
Net change in overdrafts | -915 | 122 |
Excess tax benefits from stock-based compensation | 213 | 390 |
Net proceeds from issuance of common stock | 6,327 | 3,089 |
Net cash provided by financing activities | 3,803 | 47,912 |
Effect of foreign exchange rate changes on cash | -2,577 | -425 |
Net increase in cash and cash equivalents | 31,491 | 46,756 |
Cash and cash equivalents at beginning of period | 129,305 | 104,848 |
Cash and cash equivalents at end of period | 160,796 | 151,604 |
Cash paid during the period for: | ' | ' |
Interest | 2,251 | 532 |
Income taxes, net of refunds received | $16,158 | $21,220 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 29, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and related notes of Tetra Tech, Inc. (“we,” “us” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements and, therefore, should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the fiscal year ended September 29, 2013. | |
These financial statements reflect all normal recurring adjustments that are considered necessary for a fair statement of our financial position, results of operations and cash flows for the interim periods presented. The results of operations and cash flows for any interim period are not necessarily indicative of results for the full year or for future years. Certain immaterial reclassifications were made to the prior year to conform to current year presentation. | |
Accounts_Receivable_Net
Accounts Receivable - Net | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Accounts Receivable - Net | ' | |||||||
Accounts Receivable - Net | ' | |||||||
2. Accounts Receivable – Net | ||||||||
Net accounts receivable and billings in excess of costs on uncompleted contracts consisted of the following: | ||||||||
December 29, | September 29, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Billed | $ | 356,496 | $ | 375,149 | ||||
Unbilled | 312,982 | 306,969 | ||||||
Contract retentions | 20,170 | 23,353 | ||||||
Total accounts receivable – gross | 689,648 | 705,471 | ||||||
Allowance for doubtful accounts | -46,751 | -44,624 | ||||||
Total accounts receivable – net | $ | 642,897 | $ | 660,847 | ||||
Billings in excess of costs on uncompleted contracts | $ | 92,179 | $ | 79,507 | ||||
Billed accounts receivable represent amounts billed to clients that have not been collected. Unbilled accounts receivable represent revenue recognized but not yet billed pursuant to contract terms or billed after the period end date. Most of our unbilled receivables at December 29, 2013 are expected to be billed and collected within 12 months. Contract retentions represent amounts withheld by clients until certain conditions are met or the project is completed, which may be several months or years. The allowance for doubtful accounts is determined based on a review of client-specific accounts, and contract issues resulting from current events and economic circumstances. Billings in excess of costs on uncompleted contracts represent the amount of cash collected from clients and billings to clients on contracts in advance of revenue recognized. The majority of billings in excess of costs on uncompleted contracts will be earned within 12 months. | ||||||||
Once contract performance is underway, we may experience changes in conditions, client requirements, specifications, designs, materials and expectations regarding the period of performance. Such changes result in “change orders” and may be initiated by us or by our clients. In many cases, agreement with the client as to the terms of change orders is reached prior to work commencing; however, sometimes circumstances require that work progresses without obtaining client agreement. Unapproved change orders constitute claims in excess of agreed contract prices that we seek to collect from our clients (or other third parties) for delays, errors in specifications and designs, contract terminations, or other causes of unanticipated additional costs. Revenue on claims is recognized when contract costs related to claims have been incurred and when their addition to contract value can be reliably estimated. This can lead to a situation in which costs are recognized in one period and revenue is recognized in a subsequent period such as when client agreement is obtained or a claims resolution occurs. | ||||||||
Total accounts receivable at December 29, 2013 and September 29, 2013 include approximately $39 million and $41 million, respectively, related to claims, including requests for equitable adjustment, on contracts that provide for price redetermination, primarily with U.S. federal government agencies. We regularly evaluate these claim amounts and record appropriate adjustments to operating earnings when it is probable that the claim will result in a different contract value than the amount previously reliably estimated. Losses related to claims and net operating income adjustments related to changes in estimates were immaterial for the first quarters of fiscal 2014 and 2013. | ||||||||
Billed accounts receivable related to U.S. federal government contracts were $61.8 million and $50.5 million at December 29, 2013 and September 29, 2013, respectively. U.S. federal government unbilled receivables, net of progress payments, were $81.3 million and $79.3 million at December 29, 2013 and September 29, 2013, respectively. Other than the U.S. federal government, no single client accounted for more than 10% of our accounts receivable at December 29, 2013 and September 29, 2013. | ||||||||
Mergers_and_Acquisitions
Mergers and Acquisitions | 3 Months Ended |
Dec. 29, 2013 | |
Mergers and Acquisitions | ' |
Mergers and Acquisitions | ' |
3. Mergers and Acquisitions | |
In the second quarter of fiscal 2013, we acquired American Environmental Group, Ltd. (“AEG”), headquartered in Richfield, Ohio. AEG provides environmental, design, construction and maintenance services primarily to solid and hazardous waste, environmental, energy and utility clients. Also in the second quarter of fiscal 2013, we acquired Parkland Pipeline Contractors Ltd., Parkland Pipeline Equipment Ltd., Park L Projects Ltd. and Parkland Projects Ltd. (collectively, “Parkland”), headquartered in Alberta, Canada. Parkland serves the oil and gas industry in Western Canada, and specializes in the technical support, engineering support and construction of pipelines and oilfield facilities. AEG and Parkland are both included in our Remediation and Construction Management (“RCM”) segment. We also made other acquisitions that enhanced our service offerings and expanded our geographic presence in our Engineering and Consulting Services (“ECS”) and Technical Support Services (“TSS”) segments during fiscal 2013. The aggregate fair value of the purchase prices for fiscal 2013 acquisitions was $248.9 million. Of this amount, $171.6 million was paid to the sellers, $2.0 million was recorded as liabilities in accordance with the purchase agreements, and $75.3 million was the estimated fair value of contingent earn-out obligations as of the respective acquisition dates, with an aggregate maximum of $86.7 million upon the achievement of specified financial objectives. In the first quarter of fiscal 2014, we acquired a company that enhanced our service offerings in our ECS segment. | |
Goodwill additions resulting from the above business combinations are primarily attributable to the existing workforce of the acquired companies and synergies expected to arise after the acquisitions. The results of these acquisitions were included on the consolidated financial statements from their respective closing dates. The purchase price allocations related to acquisitions completed during the second half of fiscal 2013 and the first quarter of fiscal 2014, are preliminary, and subject to adjustment based on the valuation and final determination of net assets acquired. We do not believe that any adjustment will have a material effect on our consolidated results of operations. None of the acquisitions were considered material, individually or in the aggregate, to our condensed consolidated financial statements. As a result, no pro forma information has been provided for the respective periods. | |
Most of our acquisition agreements include contingent earn-out agreements, which are generally based on the achievement of future operating income thresholds. The contingent earn-out arrangements are based upon our valuations of the acquired companies and reduce the risk of overpaying for acquisitions if the projected financial results are not achieved. The fair values of any earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, we estimate the fair value of contingent earn-out payments as part of the initial purchase price and record the estimated fair value of contingent consideration as a liability in “Estimated contingent earn-out liabilities” and “Long-term estimated contingent earn-out liabilities” on the condensed consolidated balance sheets. We consider several factors when determining that contingent earn-out liabilities are part of the purchase price, including the following: (1) the valuation of our acquisitions is not supported solely by the initial consideration paid, and the contingent earn-out formula is a critical and material component of the valuation approach to determining the purchase price; and (2) the former owners of acquired companies that remain as key employees receive compensation other than contingent earn-out payments at a reasonable level compared with the compensation of our other key employees. The contingent earn-out payments are not affected by employment termination. | |
We measure our contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy (as described in “Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended September 29, 2013). We use a probability-weighted discounted income approach as a valuation technique to convert future estimated cash flows to a single present value amount. The significant unobservable inputs used in the fair value measurements are operating income projections over the earn-out period (generally two or three years), and the probability outcome percentages we assign to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the contingent earn-out liability on the acquisition date is reflected as cash used in financing activities in our condensed consolidated statements of cash flows. Any amount paid in excess of the contingent earn-out liability on the acquisition date is reflected as cash used in operating activities. | |
We review and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Changes in the estimated fair value of our contingent earn-out liabilities related to the time component of the present value calculation are reported in interest expense. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. During the first quarter of fiscal 2014, we recorded a net decrease in our contingent earn-out liabilities and reported related net gains in operating income of $4.6 million. Subsequent to the acquisition date, we had determined that the related acquired companies would achieve operating income at different levels than what was assumed at the acquisition dates. During the first quarter of fiscal 2013, we recorded an immaterial net increase in our contingent earn-out liabilities and reported the related net losses in operating income. | |
At December 29, 2013, there was a total maximum of $102.9 million of outstanding contingent consideration related to completed acquisitions. Of this amount, $80.5 million was estimated as the fair value and accrued on our condensed consolidated balance sheet. In the first quarters of fiscal 2014 and 2013, we made $1.6 million and $22.4 million of earn-out payments, respectively, to former owners and reported them as cash used in financing activities. | |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
4. Goodwill and Intangible Assets | ||||||||||||||||
The following table summarizes the changes in the carrying value of goodwill: | ||||||||||||||||
ECS | TSS | RCM | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at September 29, 2013 | $ | 353,608 | $ | 177,579 | $ | 191,605 | $ | 722,792 | ||||||||
Goodwill additions | 10,993 | – | 314 | 11,307 | ||||||||||||
Foreign exchange impact | -10,604 | -104 | -3,864 | -14,572 | ||||||||||||
Balance at December 29, 2013 | $ | 353,997 | $ | 177,475 | $ | 188,055 | $ | 719,527 | ||||||||
Goodwill additions are primarily attributable to an acquisition completed in the first quarter of fiscal 2014. Substantially all of the goodwill additions are not deductible for income tax purposes. Foreign exchange impact relates to our foreign subsidiaries with functional currencies that are different than our reporting currency. The gross amounts of goodwill for ECS were $411.5 million and $411.1 million at December 29, 2013 and September 29, 2013, respectively, excluding $57.5 million of accumulated impairment. | ||||||||||||||||
The gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in “Intangible assets - net” on the condensed consolidated balance sheets, were as follows: | ||||||||||||||||
December 29, 2013 | September 29, 2013 | |||||||||||||||
Weighted- | Gross | Accumulated | Gross | Accumulated | ||||||||||||
Average | Amount | Amortization | Amount | Amortization | ||||||||||||
Remaining Life | ||||||||||||||||
(in Years) | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Non-compete agreements | 2.6 | $ | 2,149 | $ | -1,268 | $ | 6,160 | $ | -5,247 | |||||||
Client relations | 4.3 | 121,335 | -47,567 | 128,839 | -49,189 | |||||||||||
Backlog | 0.5 | 11,336 | -9,191 | 68,968 | -64,675 | |||||||||||
Technology and trade names | 2.7 | 3,367 | -1,475 | 4,204 | -2,131 | |||||||||||
Total | $ | 138,187 | $ | -59,501 | $ | 208,171 | $ | -121,242 | ||||||||
The gross amount and accumulated amortization for acquired identifiable intangible assets decreased due to a write-down of fully amortized assets in the first quarter of fiscal 2014. The recent acquisition added $2.2 million of identifiable intangible assets, partially offset by $1.8 million of foreign currency translation adjustments. Amortization expense for the identifiable intangible assets for the first quarters of fiscal 2014 and 2013 was $8.6 million and $5.6 million, respectively. Estimated amortization expense for the remainder of fiscal 2014 and succeeding years is as follows: | ||||||||||||||||
Amount | ||||||||||||||||
(in thousands) | ||||||||||||||||
2014 | $ | 18,914 | ||||||||||||||
2015 | 19,563 | |||||||||||||||
2016 | 15,637 | |||||||||||||||
2017 | 13,346 | |||||||||||||||
2018 | 6,289 | |||||||||||||||
Beyond | 4,937 | |||||||||||||||
Total | $ | 78,686 | ||||||||||||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ' | |||||||
5. Property and Equipment | ||||||||
Property and equipment consisted of the following: | ||||||||
December 29, | September 29, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Land and buildings | $ | 5,581 | $ | 5,565 | ||||
Equipment, furniture and fixtures | 208,944 | 210,172 | ||||||
Leasehold improvements | 26,297 | 26,429 | ||||||
Total property and equipment | 240,822 | 242,166 | ||||||
Accumulated depreciation | -157,111 | -154,140 | ||||||
Property and equipment, net | $ | 83,711 | $ | 88,026 | ||||
The depreciation expense related to property and equipment, including assets under capital leases, was $7.1 million and $6.8 million for the first quarters of fiscal 2014 and 2013, respectively. | ||||||||
Stock_Repurchase
Stock Repurchase | 3 Months Ended |
Dec. 29, 2013 | |
Stock Repurchase | ' |
Stock Repurchase | ' |
6. Stock Repurchase | |
In June 2013, our Board of Directors authorized a stock repurchase program (the “Stock Repurchase Program”) under which we may currently repurchase up to $100 million of Tetra Tech common stock. In November 2013, our Board of Directors amended the Stock Repurchase Program, effective on November 18, 2013, to revise the pricing parameters and to extend the program through fiscal 2014. Stock repurchases may be made on the open market or in privately negotiated transactions with third parties. Because the repurchases under the Stock Repurchase Program are subject to certain pricing parameters, there is no guarantee as to the exact number of shares that will be repurchased under the program. From the inception of the Stock Repurchase Program through December 29, 2013, we repurchased through open market purchases a total of 855,200 shares at an average price of $23.39 per share, for a total cost of $20.0 million. All of these shares were repurchased and settled during the second half of fiscal 2013. | |
Subsequent Event. Our Board of Directors has authorized the amendment of our stock repurchase program to revise the pricing grids and to commit $30 million of the $100 million authorized buyback to be expended prior to the end of our fiscal year. | |
Stockholders_Equity_and_Stock_
Stockholders' Equity and Stock Compensation Plans | 3 Months Ended |
Dec. 29, 2013 | |
Stockholders' Equity and Stock Compensation Plans | ' |
Stockholders' Equity and Stock Compensation Plans | ' |
7. Stockholders’ Equity and Stock Compensation Plans | |
We recognize the fair value of our stock-based compensation awards as compensation expense on a straight-line basis over the requisite service period in which the award vests. Stock-based compensation expense for the first quarters of fiscal 2014 and 2013 was $2.3 million and $2.5 million, respectively. The majority of these amounts was included in “Selling, general and administrative (“SG&A”) expenses” in our condensed consolidated statements of income. In the first quarter of fiscal 2014, we granted 354,238 stock options with exercise prices of $28.58 - $28.68 per share and an estimated weighted-average fair value of $9.36 per share. In addition, we awarded 117,067 shares of restricted stock to our non-employee directors and executive officers at the fair value of $28.58 per share on the award date. All of these shares are performance-based and vest, if at all, over a three-year period. The number of shares that ultimately vest is based on the growth in our diluted earnings per share. Additionally, we awarded 224,618 restricted stock units (“RSUs”) to our non-employee directors, executive officers and employees at the fair value of $28.58 per share on the award date. All of the executive officer and employee RSUs have time-based vesting over a four-year period, and the non-employee director RSUs vest after one year. | |
Earnings_Per_Share_EPS
Earnings Per Share (''EPS'') | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Earnings Per Share (''EPS'') | ' | |||||||
Earnings Per Share (''EPS'') | ' | |||||||
8. Earnings Per Share (“EPS”) | ||||||||
Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding, less unvested restricted stock for the period. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted-average dilutive effects of outstanding stock options and unvested restricted stock using the treasury stock method. | ||||||||
The following table sets forth the number of weighted-average shares used to compute basic and diluted EPS: | ||||||||
Three Months Ended | ||||||||
December 29, | December 30, | |||||||
2013 | 2012 | |||||||
(in thousands, except per share data) | ||||||||
Net income attributable to Tetra Tech | $ | 27,315 | $ | 26,224 | ||||
Weighted-average common shares outstanding - basic | 64,227 | 63,864 | ||||||
Effect of dilutive stock options and unvested restricted stock | 821 | 744 | ||||||
Weighted-average common stock outstanding - diluted | 65,048 | 64,608 | ||||||
Earnings per share attributable to Tetra Tech: | ||||||||
Basic | $ | 0.43 | $ | 0.41 | ||||
Diluted | $ | 0.42 | $ | 0.41 | ||||
For the first quarters of fiscal 2014 and 2013, 0.4 million and 1.4 million options, respectively, were excluded from the calculation of dilutive potential common shares because the assumed proceeds per share exceeded the average market price per share during the period. Therefore, their inclusion would have been anti-dilutive. | ||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 29, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
9. Income Taxes | |
The effective tax rates for the first quarters of fiscal 2014 and 2013 were 33.8% and 35.0%, respectively. At December 29, 2013, undistributed earnings of our foreign subsidiaries, primarily in Canada, in the amount of approximately $29 million, are expected to be permanently reinvested. Accordingly, no provision for U.S. income taxes or foreign withholding taxes has been made. Upon distribution of those earnings, we would be subject to U.S. income taxes and foreign withholding taxes. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable; however, the potential foreign tax credit associated with the deferred income would be available to partially reduce the resulting U.S. tax liabilities. | |
We review the realizability of deferred tax assets on a quarterly basis by assessing the need for a valuation allowance. As of December 29, 2013, we performed our assessment of net deferred tax assets. Significant management judgment is required in determining the provision for income taxes and, in particular, any valuation allowance recorded against our deferred tax assets. Applying the applicable accounting guidance requires an assessment of all available evidence, both positive and negative, regarding the realizability of the net deferred tax assets. Based upon recent results, we concluded that a cumulative loss in recent years exists in certain foreign jurisdictions. We have historically relied on the following factors in our assessment of the realizability of our net deferred tax assets: | |
· taxable income in prior carryback years as permitted under the tax law; | |
· future reversals of existing taxable temporary differences; | |
· consideration of available tax planning strategies and actions that could be implemented, if necessary; and | |
· estimates of future taxable income from our operations. | |
We considered these factors in our estimate of the reversal pattern of deferred tax assets, using assumptions that we believe are reasonable and consistent with operating results. However, as a result of projected cumulative pre-tax losses in these certain foreign jurisdictions for the 36 months ended September 28, 2014, we concluded that our estimates of future taxable income and certain tax planning strategies did not constitute sufficient positive evidence to assert that it is more likely than not that certain deferred tax assets would be realizable before expiration. Although we project earnings in the business beyond 2014, we did not rely on these projections when assessing the realizability of our deferred tax assets. Based on our assessment, we have concluded that it is more likely than not that the assets will be realized except for the assets related to loss carry-forwards in foreign jurisdictions for which a valuation allowance of $7.9 million has been provided. | |
During the second quarter of fiscal 2013, the American Taxpayer Relief Act of 2012 was signed into law. This law retroactively extended the federal research and experimentation credits (“R&E credits”) for amounts incurred from January 1, 2012 through December 31, 2013. Our effective tax rate for the first quarter of fiscal 2014 includes a tax benefit from R&E credits attributable to the first three months of fiscal 2014. Should the R&E credits provision be retroactively extended during fiscal 2014, additional benefits will be reflected in our effective tax rate during the quarter reporting period of enactment. | |
Reportable_Segments
Reportable Segments | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Reportable Segments | ' | |||||||
Reportable Segments | ' | |||||||
10. Reportable Segments | ||||||||
Our reportable segments are as follows: | ||||||||
ECS: provides front-end science, consulting engineering and project management services in the areas of surface water management, water infrastructure, solid waste management, mining, geotechnical sciences, arctic engineering, industrial processes and oil sands, transportation and information technology. | ||||||||
TSS: provides management consulting and engineering services and strategic direction in the areas of environmental assessments/hazardous waste management, climate change, international development, international reconstruction and stabilization, energy, oil and gas, technical government consulting, and building and facilities. | ||||||||
RCM: provides full-service support, including construction and construction management, to all of our client sectors, including the U.S. federal government in the United States and internationally, and commercial clients worldwide, in the areas of environmental remediation, infrastructure development, solid waste management, energy, and oil and gas. | ||||||||
Management evaluates the performance of these reportable segments based upon their respective segment operating income before the effect of amortization expense related to acquisitions and other unallocated corporate expenses. We account for inter-segment sales and transfers as if the sales and transfers were to third parties; that is, by applying a negotiated fee onto the costs of the services performed. All significant intercompany balances and transactions are eliminated in consolidation. | ||||||||
The following tables set forth summarized financial information regarding our reportable segments: | ||||||||
Reportable Segments | ||||||||
Three Months Ended | ||||||||
December 29, | December 30, | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Revenue | ||||||||
ECS | $ | 234,887 | $ | 278,168 | ||||
TSS | 220,690 | 243,924 | ||||||
RCM | 214,206 | 158,431 | ||||||
Elimination of inter-segment revenue | -23,935 | -21,978 | ||||||
Total revenue | $ | 645,848 | $ | 658,545 | ||||
Operating Income | ||||||||
ECS | $ | 20,006 | $ | 19,291 | ||||
TSS | 22,821 | 22,343 | ||||||
RCM | 8,527 | 7,082 | ||||||
Corporate (1) | -7,636 | -6,907 | ||||||
Total operating income | $ | 43,718 | $ | 41,809 | ||||
Depreciation | ||||||||
ECS | $ | 2,177 | $ | 2,625 | ||||
TSS | 584 | 782 | ||||||
RCM | 3,614 | 2,603 | ||||||
Corporate | 754 | 798 | ||||||
Total depreciation | $ | 7,129 | $ | 6,808 | ||||
(1) Includes amortization of intangibles, other costs and other income not allocable to segments. | ||||||||
December 29, | September 29, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Total Assets | ||||||||
ECS | $ | 904,051 | $ | 912,996 | ||||
TSS | 690,481 | 673,864 | ||||||
RCM | 430,995 | 435,053 | ||||||
Corporate (1) | -236,854 | -222,821 | ||||||
Total assets | $ | 1,788,673 | $ | 1,799,092 | ||||
(1) Corporate assets consist of intercompany eliminations and assets not allocated to segments including goodwill, intangible assets, deferred income taxes and certain other assets. | ||||||||
Major Clients | ||||||||
Other than the U.S. federal government, no single client accounted for more than 10% of our revenue. All of our segments generated revenue from all client sectors. | ||||||||
The following table represents our revenue by client sector: | ||||||||
Three Months Ended | ||||||||
December 29, | December 30, | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Client Sector | ||||||||
International (1) | $ | 163,933 | $ | 167,518 | ||||
U.S. commercial | 186,296 | 173,141 | ||||||
U.S. federal government (2) | 195,184 | 227,390 | ||||||
U.S. state and local government | 100,435 | 90,496 | ||||||
Total | $ | 645,848 | $ | 658,545 | ||||
(1) Includes revenue generated from foreign operations, primarily in Canada, and revenue generated from non-U.S. clients. | ||||||||
(2) Includes revenue generated under U.S. federal government contracts performed outside the United States. | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 29, 2013 | |
Fair Value Measurements | ' |
Fair Value Measurements | ' |
11. Fair Value Measurements | |
The fair value of long-term debt was determined using the present value of future cash flows based on the borrowing rates currently available for debt with similar terms and maturities (Level 2 measurement, as described in “Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended September 29, 2013). The carrying value of our long-term debt approximated fair value at December 29, 2013 and September 29, 2013. For the first quarter of fiscal 2014, we had borrowings of $205.0 million under our amended credit agreement to fund our business acquisitions, working capital needs and contingent earn-outs. | |
Joint_Ventures
Joint Ventures | 3 Months Ended |
Dec. 29, 2013 | |
Joint Ventures | ' |
Joint Ventures | ' |
12. Joint Ventures | |
Consolidated Joint Ventures | |
The aggregate revenue of our consolidated joint ventures was $2.6 million and $4.0 million for the first quarters of fiscal 2014 and 2013, respectively. The assets and liabilities of these consolidated joint ventures were immaterial at December 29, 2013 and September 29, 2013. These assets are restricted for use only by those joint ventures and are not available for our general operations. Cash and cash equivalents maintained by the consolidated joint ventures at December 29, 2013 and September 29, 2013 were $1.0 million and $1.2 million, respectively. | |
Unconsolidated Joint Ventures | |
We account for our unconsolidated joint ventures using the equity method of accounting. Under this method, we recognize our proportionate share of the net earnings of these joint ventures within “Other costs of revenue” in our condensed consolidated statements of income. For the first quarters of fiscal 2014 and 2013, we reported $0.7 million and $0.6 million of equity in earnings of unconsolidated joint ventures, respectively. Our maximum exposure to loss as a result of our investments in unconsolidated joint ventures is typically limited to the aggregate of the carrying value of the investment. Future funding commitments for our unconsolidated joint ventures are immaterial. The unconsolidated joint ventures are, individually and in aggregate, immaterial to our consolidated financial statements. | |
The aggregate carrying values of the assets and liabilities of the unconsolidated joint ventures were $18.0 million and $15.6 million, respectively, at December 29, 2013, and $24.0 million and $21.8 million, respectively, at September 29, 2013. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||
Dec. 29, 2013 | ||||||||||
Derivative Financial Instruments | ' | |||||||||
Derivative Financial Instruments | ' | |||||||||
13. Derivative Financial Instruments | ||||||||||
We use certain interest rate derivative contracts to hedge interest rate exposures on our variable rate debt. We have also entered into foreign currency derivative contracts with financial institutions to reduce the risk that cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. Our hedging program is not designated for trading or speculative purposes. | ||||||||||
We recognize derivative instruments as either assets or liabilities on the accompanying condensed consolidated balance sheets at fair value. We record changes in the fair value (i.e., gains or losses) of the derivatives that have been designated as accounting hedges in our condensed consolidated balance sheets as accumulated other comprehensive income. | ||||||||||
In fiscal 2013, we entered into three interest rate swap agreements that we designated as cash flow hedges to fix the variable interest rates on a portion of borrowings under our term loan facility. In the first quarter of fiscal 2014, we entered into two additional interest rate swap agreements that we designated as cash flow hedges to fix the variable interest rates on the balance of the term loan facility. At December 29, 2013, the effective portion of our interest rate swap agreements designated as cash flow hedges before tax effect was immaterial, all of which we expect to reclassify from accumulated other comprehensive income to interest expense within the next 12 months. | ||||||||||
As of December 29, 2013, the notional principal, fixed rates and related expiration dates of our outstanding interest rate swap agreements are as follows: | ||||||||||
Notional Amount | Fixed | Expiration | ||||||||
(in thousands) | Rate | Date | ||||||||
$ | 51,250 | 1.36% | May 2018 | |||||||
51,250 | 1.34% | May 2018 | ||||||||
51,250 | 1.35% | May 2018 | ||||||||
25,625 | 1.23% | May 2018 | ||||||||
25,625 | 1.24% | May 2018 | ||||||||
The fair values of our outstanding derivatives designated as hedging instruments were as follows: | ||||||||||
Balance Sheet Location | December 29, | September 29, | ||||||||
2013 | 2013 | |||||||||
(in thousands) | ||||||||||
Interest rate swap agreements | Other current liabilities | $ | 209 | $ | 987 | |||||
The impact of the effective portions of derivative instruments in cash flow hedging relationships on income and other comprehensive income from our interest rate swap agreements was immaterial for the three months of fiscal 2014 and the fiscal year ended September 29, 2013. Additionally, there were no ineffective portions of derivative instruments. Accordingly, no amounts were excluded from effectiveness testing for our interest rate swap agreements. We had no derivative instruments that were not designated as hedging instruments for fiscal 2013 and the first quarter of fiscal 2014. | ||||||||||
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||
Dec. 29, 2013 | |||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
14. Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | |||||||||||
The accumulated balances and reporting period activities for the three months ended December 29, 2013 and September 29, 2013 related to reclassifications out of accumulated other comprehensive income (loss) are summarized as follows: | |||||||||||
Foreign | Loss on | Accumulated | |||||||||
Currency | Derivative | Other | |||||||||
Translation | Instruments | Comprehensive | |||||||||
Adjustments | Income (Loss) | ||||||||||
(in thousands) | |||||||||||
Balances at September 30, 2012 | $ | 31,110 | $ | -93 | $ | 31,017 | |||||
Other comprehensive loss before reclassifications | -5,599 | – | -5,599 | ||||||||
Reclassification adjustment of prior derivative settlement, net of tax | – | 121 | 121 | ||||||||
Net current-period other comprehensive income (loss) | -5,599 | 121 | -5,478 | ||||||||
Balances at December 30, 2012 | $ | 25,511 | $ | 28 | $ | 25,539 | |||||
Balances at September 29, 2013 | $ | 2,340 | $ | -482 | $ | 1,858 | |||||
Other comprehensive income (loss) before reclassifications | -22,096 | 308 | -21,788 | ||||||||
Reclassification adjustment of prior derivative settlement, net of tax | – | 517 | 517 | ||||||||
Net current-period other comprehensive income (loss) | -22,096 | 825 | -21,271 | ||||||||
Balances at December 29, 2013 | $ | -19,756 | $ | 343 | $ | -19,413 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 29, 2013 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
We are subject to certain claims and lawsuits typically filed against the engineering, consulting and construction profession, alleging primarily professional errors or omissions. We carry professional liability insurance, subject to certain deductibles and policy limits, against such claims. However, in some actions, parties are seeking damages that exceed our insurance coverage or for which we are not insured. While management does not believe that the resolution of these claims will have a material adverse effect, individually or in aggregate, on our financial position, results of operations or cash flows, management acknowledges the uncertainty surrounding the ultimate resolution of these matters. | |
We acquired BPR Inc. (“BPR”), a Quebec-based engineering firm on October 4, 2010. Subsequently, we have been informed of the following with respect to pre-acquisition activities at BPR: | |
On April 17, 2012, authorities in the province of Quebec, Canada charged two employees of BPR Triax, a subsidiary of BPR, and BPR Triax, under the Canadian Criminal Code with allegations of corruption. Discovery procedures associated with the charges are currently ongoing, and the legal process is expected to continue through September 2014. We have conducted an internal investigation concerning this matter and, based on the results of our investigation, we believe these allegations are limited to activities at BPR Triax prior to our acquisition of BPR. | |
During late March 2013, the then-president of BPR gave testimony to the Charbonneau Commission, which is investigating possible corruption in the engineering industry in Quebec. He stated that, during 2007 and 2008, he and other former BPR shareholders paid personal funds to a political party official in exchange for the award of five government contracts. Further, prior to the testimony, we were not aware of the misconduct. We have accepted the resignation of BPR’s former president, and are evaluating the impact of these pre-acquisition actions on our business and results of operations. | |
During March 2013, following the resignation of BPR’s former president, we learned that criminal charges had been filed against BPR and its former president in France. The charges relate to allegations that, in 2009, a BPR subsidiary had hired an employee of another firm to be CEO of that BPR subsidiary as a part of a corrupt scheme that allegedly damaged, among others, the employee’s former employer. A trial in this matter is scheduled for May 2014. | |
On April 19, 2013, a class action proceeding was filed in Montreal in which BPR, BPR’s former president, and other Quebec-based engineering firms and individuals are named as defendants. The plaintiff class includes all individuals and entities that have paid real estate or municipal taxes to the city of Montreal. The allegations include participation in collusion to share contracts awarded by the City of Montreal, conspiracy to reduce competition and fix prices, payment of bribes to officials, making illegal political contributions, and bid rigging. | |
On June 28, 2013, a purported class action lawsuit was filed against Tetra Tech and two of our officers in United States District Court for the Central District of California. The action was purportedly brought on behalf of purchasers of our publicly traded securities between May 3, 2012 and June 18, 2013. The complaint alleges generally that we and those officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and related rules because we allegedly failed to take unspecified, “necessary” charges to our accounts receivables and earnings during the class period. In addition, the complaint alleges that the financial guidance we offered during the class period was intentionally or recklessly false and misleading. The complaint alleges unspecified damages based on the decline in the market price of our shares following the issuance of revised guidance on June 18, 2013. On October 30, 2013, plaintiff filed an amended complaint for the same purported class period making essentially the same allegations. On November 29, 2013, we filed a motion to dismiss the amended complaint, and on January 17, 2014, the Court granted our motion and dismissed the case without prejudice. | |
The financial impact to us of the matters discussed above is unknown at this time. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 29, 2013 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
16. Recent Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued new guidance to enhance disclosures about financial instruments and derivative instruments that are either offset on the statement of financial position or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset on the statement of financial position. We are required to provide both net and gross information for these assets and liabilities in order to facilitate comparability between financial statements prepared on the basis of U.S. GAAP and financial statements prepared on the basis of International Financial Reporting Standards. This guidance became effective for us in the first quarter of fiscal 2014 on a retrospective basis. | |
In February 2013, the FASB issued an update to the reporting of reclassifications out of accumulated other comprehensive income. We are required to disclose additional information about changes in and significant items reclassified out of accumulated other comprehensive income. The guidance became effective for us in the first quarter of fiscal 2014. The adoption of this guidance did not have an impact on our consolidated financial statements. | |
In July 2013, the FASB issued an update on an inclusion of the Fed Funds Effective Swap as a benchmark interest rate (Overnight Interest Swap Rate) for hedge accounting purposes. This guidance permits the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under U.S. GAAP. This guidance became effective prospectively for qualifying new or redesigned hedging relationships entered into on or after July 17, 2013. The adoption of this guidance did not have a material impact on our consolidated financial statements. | |
In July 2013, the FASB issued an update on the financial statement presentation of unrecognized tax benefits. We are required to present a liability related to an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. This guidance will be effective for us in the first quarter of fiscal 2015. We do not expect the adoption of this guidance to have an impact on our consolidated financial statements. | |
Accounts_Receivable_Net_Tables
Accounts Receivable - Net (Tables) | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Accounts Receivable - Net | ' | |||||||
Net accounts receivable and billings in excess of costs on uncompleted contracts | ' | |||||||
December 29, | September 29, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Billed | $ | 356,496 | $ | 375,149 | ||||
Unbilled | 312,982 | 306,969 | ||||||
Contract retentions | 20,170 | 23,353 | ||||||
Total accounts receivable – gross | 689,648 | 705,471 | ||||||
Allowance for doubtful accounts | -46,751 | -44,624 | ||||||
Total accounts receivable – net | $ | 642,897 | $ | 660,847 | ||||
Billings in excess of costs on uncompleted contracts | $ | 92,179 | $ | 79,507 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Dec. 29, 2013 | ||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||
Summary of changes in the carrying value of goodwill | ' | |||||||||||||||
ECS | TSS | RCM | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at September 29, 2013 | $ | 353,608 | $ | 177,579 | $ | 191,605 | $ | 722,792 | ||||||||
Goodwill additions | 10,993 | – | 314 | 11,307 | ||||||||||||
Foreign exchange impact | -10,604 | -104 | -3,864 | -14,572 | ||||||||||||
Balance at December 29, 2013 | $ | 353,997 | $ | 177,475 | $ | 188,055 | $ | 719,527 | ||||||||
Summary of acquired identifiable intangible assets with finite useful lives | ' | |||||||||||||||
December 29, 2013 | September 29, 2013 | |||||||||||||||
Weighted- | Gross | Accumulated | Gross | Accumulated | ||||||||||||
Average | Amount | Amortization | Amount | Amortization | ||||||||||||
Remaining Life | ||||||||||||||||
(in Years) | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Non-compete agreements | 2.6 | $ | 2,149 | $ | -1,268 | $ | 6,160 | $ | -5,247 | |||||||
Client relations | 4.3 | 121,335 | -47,567 | 128,839 | -49,189 | |||||||||||
Backlog | 0.5 | 11,336 | -9,191 | 68,968 | -64,675 | |||||||||||
Technology and trade names | 2.7 | 3,367 | -1,475 | 4,204 | -2,131 | |||||||||||
Total | $ | 138,187 | $ | -59,501 | $ | 208,171 | $ | -121,242 | ||||||||
Estimated amortization expense for the succeeding five years and beyond | ' | |||||||||||||||
Amount | ||||||||||||||||
(in thousands) | ||||||||||||||||
2014 | $ | 18,914 | ||||||||||||||
2015 | 19,563 | |||||||||||||||
2016 | 15,637 | |||||||||||||||
2017 | 13,346 | |||||||||||||||
2018 | 6,289 | |||||||||||||||
Beyond | 4,937 | |||||||||||||||
Total | $ | 78,686 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Property and Equipment | ' | |||||||
Schedule of components of property and equipment | ' | |||||||
December 29, | September 29, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Land and buildings | $ | 5,581 | $ | 5,565 | ||||
Equipment, furniture and fixtures | 208,944 | 210,172 | ||||||
Leasehold improvements | 26,297 | 26,429 | ||||||
Total property and equipment | 240,822 | 242,166 | ||||||
Accumulated depreciation | -157,111 | -154,140 | ||||||
Property and equipment, net | $ | 83,711 | $ | 88,026 |
Earnings_Per_Share_EPS_Tables
Earnings Per Share (''EPS'') (Tables) | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Earnings Per Share (''EPS'') | ' | |||||||
Schedule of number of weighted-average shares used to compute basic and diluted EPS | ' | |||||||
Three Months Ended | ||||||||
December 29, | December 30, | |||||||
2013 | 2012 | |||||||
(in thousands, except per share data) | ||||||||
Net income attributable to Tetra Tech | $ | 27,315 | $ | 26,224 | ||||
Weighted-average common shares outstanding - basic | 64,227 | 63,864 | ||||||
Effect of dilutive stock options and unvested restricted stock | 821 | 744 | ||||||
Weighted-average common stock outstanding - diluted | 65,048 | 64,608 | ||||||
Earnings per share attributable to Tetra Tech: | ||||||||
Basic | $ | 0.43 | $ | 0.41 | ||||
Diluted | $ | 0.42 | $ | 0.41 |
Reportable_Segments_Tables
Reportable Segments (Tables) | 3 Months Ended | |||||||
Dec. 29, 2013 | ||||||||
Reportable Segments | ' | |||||||
Summarized financial information of reportable segments | ' | |||||||
Three Months Ended | ||||||||
December 29, | December 30, | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Revenue | ||||||||
ECS | $ | 234,887 | $ | 278,168 | ||||
TSS | 220,690 | 243,924 | ||||||
RCM | 214,206 | 158,431 | ||||||
Elimination of inter-segment revenue | -23,935 | -21,978 | ||||||
Total revenue | $ | 645,848 | $ | 658,545 | ||||
Operating Income | ||||||||
ECS | $ | 20,006 | $ | 19,291 | ||||
TSS | 22,821 | 22,343 | ||||||
RCM | 8,527 | 7,082 | ||||||
Corporate (1) | -7,636 | -6,907 | ||||||
Total operating income | $ | 43,718 | $ | 41,809 | ||||
Depreciation | ||||||||
ECS | $ | 2,177 | $ | 2,625 | ||||
TSS | 584 | 782 | ||||||
RCM | 3,614 | 2,603 | ||||||
Corporate | 754 | 798 | ||||||
Total depreciation | $ | 7,129 | $ | 6,808 | ||||
(1) Includes amortization of intangibles, other costs and other income not allocable to segments. | ||||||||
December 29, | September 29, | |||||||
2013 | 2013 | |||||||
(in thousands) | ||||||||
Total Assets | ||||||||
ECS | $ | 904,051 | $ | 912,996 | ||||
TSS | 690,481 | 673,864 | ||||||
RCM | 430,995 | 435,053 | ||||||
Corporate (1) | -236,854 | -222,821 | ||||||
Total assets | $ | 1,788,673 | $ | 1,799,092 | ||||
(1) Corporate assets consist of intercompany eliminations and assets not allocated to segments including goodwill, intangible assets, deferred income taxes and certain other assets. | ||||||||
Summary of revenue by client sector | ' | |||||||
Three Months Ended | ||||||||
December 29, | December 30, | |||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Client Sector | ||||||||
International (1) | $ | 163,933 | $ | 167,518 | ||||
U.S. commercial | 186,296 | 173,141 | ||||||
U.S. federal government (2) | 195,184 | 227,390 | ||||||
U.S. state and local government | 100,435 | 90,496 | ||||||
Total | $ | 645,848 | $ | 658,545 | ||||
(1) Includes revenue generated from foreign operations, primarily in Canada, and revenue generated from non-U.S. clients. | ||||||||
(2) Includes revenue generated under U.S. federal government contracts performed outside the United States. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||
Dec. 29, 2013 | ||||||||||
Derivative Financial Instruments | ' | |||||||||
Schedule of notional principal, fixed rates and related expiration dates of outstanding interest rate swap agreements | ' | |||||||||
Notional Amount | Fixed | Expiration | ||||||||
(in thousands) | Rate | Date | ||||||||
$ | 51,250 | 1.36% | May 2018 | |||||||
51,250 | 1.34% | May 2018 | ||||||||
51,250 | 1.35% | May 2018 | ||||||||
25,625 | 1.23% | May 2018 | ||||||||
25,625 | 1.24% | May 2018 | ||||||||
Schedule of fair values of the entity's outstanding derivatives designated as hedging instruments | ' | |||||||||
Balance Sheet Location | December 29, | September 29, | ||||||||
2013 | 2013 | |||||||||
(in thousands) | ||||||||||
Interest rate swap agreements | Other current liabilities | $ | 209 | $ | 987 | |||||
Reclassifications_Out_of_Accum1
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||
Dec. 29, 2013 | |||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
Summary of reclassifications out of accumulated other comprehensive income (loss) | ' | ||||||||||
Foreign | Loss on | Accumulated | |||||||||
Currency | Derivative | Other | |||||||||
Translation | Instruments | Comprehensive | |||||||||
Adjustments | Income (Loss) | ||||||||||
(in thousands) | |||||||||||
Balances at September 30, 2012 | $ | 31,110 | $ | -93 | $ | 31,017 | |||||
Other comprehensive loss before reclassifications | -5,599 | – | -5,599 | ||||||||
Reclassification adjustment of prior derivative settlement, net of tax | – | 121 | 121 | ||||||||
Net current-period other comprehensive income (loss) | -5,599 | 121 | -5,478 | ||||||||
Balances at December 30, 2012 | $ | 25,511 | $ | 28 | $ | 25,539 | |||||
Balances at September 29, 2013 | $ | 2,340 | $ | -482 | $ | 1,858 | |||||
Other comprehensive income (loss) before reclassifications | -22,096 | 308 | -21,788 | ||||||||
Reclassification adjustment of prior derivative settlement, net of tax | – | 517 | 517 | ||||||||
Net current-period other comprehensive income (loss) | -22,096 | 825 | -21,271 | ||||||||
Balances at December 29, 2013 | $ | -19,756 | $ | 343 | $ | -19,413 |
Accounts_Receivable_Net_Detail
Accounts Receivable - Net (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 29, 2013 | Sep. 29, 2013 | |
Accounts Receivable - Net | ' | ' |
Billed | $356,496,000 | $375,149,000 |
Unbilled | 312,982,000 | 306,969,000 |
Contract retentions | 20,170,000 | 23,353,000 |
Total accounts receivable - gross | 689,648,000 | 705,471,000 |
Allowance for doubtful accounts | -46,751,000 | -44,624,000 |
Total accounts receivable - net | 642,897,000 | 660,847,000 |
Billings in excess of costs on uncompleted contracts | 92,179,000 | 79,507,000 |
Period for billing and collecting unbilled receivables | '12 months | ' |
Period for earning majority of billings in excess of costs | '12 months | ' |
Total accounts receivable related to claims and requests for equitable adjustment on contracts | 39,000,000 | 41,000,000 |
Billed accounts receivable related to U.S. federal government contracts | 61,800,000 | 50,500,000 |
U.S. federal government unbilled receivables, net of progress payments | $81,300,000 | $79,300,000 |
Threshold percentage for disclosure of accounts receivable from a single client | 10.00% | 10.00% |
Accounts Receivable | ' | ' |
Account receivable major customer | ' | ' |
Number of clients exceeding threshold | 0 | 0 |
Mergers_and_Acquisitions_Detai
Mergers and Acquisitions (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 29, 2013 | Sep. 29, 2013 |
Maximum | Minimum | AEG, Parkland and other 2013 acquisitions | |||
Business acquisition | ' | ' | ' | ' | ' |
Aggregate fair value of purchase prices | ' | ' | ' | ' | $248.90 |
Cash paid to the sellers | ' | ' | ' | ' | 171.6 |
Amount recorded as liabilities in accordance with the purchase agreements | ' | ' | ' | ' | 2 |
Estimated fair value of contingent earn-out obligations | 80.5 | ' | ' | ' | 75.3 |
Aggregate maximum of contingent consideration | 102.9 | ' | ' | ' | 86.7 |
Earn out period for operating income projection | ' | ' | '3 years | '2 years | ' |
Net gains on fair value adjustment in operating income | 4.6 | ' | ' | ' | ' |
Net decrease in our contingent earn-out liabilities | 4.6 | ' | ' | ' | ' |
Earn-outs paid to former owners | 1.6 | 22.4 | ' | ' | ' |
Reported as cash used in financing activities | $1.60 | $22.40 | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | |
Dec. 29, 2013 | Sep. 29, 2013 | |
Goodwill | ' | ' |
Balance at beginning of the period | $722,792,000 | ' |
Goodwill additions | 11,307,000 | ' |
Foreign exchange impact | -14,572,000 | ' |
Balance at end of the period | 719,527,000 | ' |
ECS | ' | ' |
Goodwill | ' | ' |
Balance at beginning of the period | 353,608,000 | ' |
Goodwill additions | 10,993,000 | ' |
Foreign exchange impact | -10,604,000 | ' |
Balance at end of the period | 353,997,000 | ' |
Gross amounts of goodwill | 411,500,000 | 411,100,000 |
Accumulated impairment | 57,500,000 | 57,500,000 |
TSS | ' | ' |
Goodwill | ' | ' |
Balance at beginning of the period | 177,579,000 | ' |
Foreign exchange impact | -104,000 | ' |
Balance at end of the period | 177,475,000 | ' |
RCM | ' | ' |
Goodwill | ' | ' |
Balance at beginning of the period | 191,605,000 | ' |
Goodwill additions | 314,000 | ' |
Foreign exchange impact | -3,864,000 | ' |
Balance at end of the period | $188,055,000 | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 3 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | |
Finite-lived intangible assets | ' | ' | ' |
Gross Amount | $138,187,000 | ' | $208,171,000 |
Accumulated Amortization | -59,501,000 | ' | -121,242,000 |
Identifiable intangible assets added on acquisition | 2,200,000 | ' | ' |
Foreign currency translation adjustments | 1,800,000 | ' | ' |
Amortization expense for identifiable intangible assets | 8,600,000 | 5,600,000 | ' |
Estimated amortization expense | ' | ' | ' |
2014 | 18,914,000 | ' | ' |
2015 | 19,563,000 | ' | ' |
2016 | 15,637,000 | ' | ' |
2017 | 13,346,000 | ' | ' |
2018 | 6,289,000 | ' | ' |
Beyond | 4,937,000 | ' | ' |
Total | 78,686,000 | ' | ' |
Non-compete agreements | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' |
Weighted-Average Remaining Life | '2 years 7 months 6 days | ' | ' |
Gross Amount | 2,149,000 | ' | 6,160,000 |
Accumulated Amortization | -1,268,000 | ' | -5,247,000 |
Client relations | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' |
Weighted-Average Remaining Life | '4 years 3 months 18 days | ' | ' |
Gross Amount | 121,335,000 | ' | 128,839,000 |
Accumulated Amortization | -47,567,000 | ' | -49,189,000 |
Backlog | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' |
Weighted-Average Remaining Life | '6 months | ' | ' |
Gross Amount | 11,336,000 | ' | 68,968,000 |
Accumulated Amortization | -9,191,000 | ' | -64,675,000 |
Technology and trade names | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' |
Weighted-Average Remaining Life | '2 years 8 months 12 days | ' | ' |
Gross Amount | 3,367,000 | ' | 4,204,000 |
Accumulated Amortization | ($1,475,000) | ' | ($2,131,000) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 |
Property and Equipment | ' | ' | ' |
Property and equipment at cost, gross | $240,822 | ' | $242,166 |
Accumulated depreciation | -157,111 | ' | -154,140 |
Property and equipment, net | 83,711 | ' | 88,026 |
Depreciation expense related to property and equipment, including assets under capital leases | 7,129 | 6,808 | ' |
Land and buildings | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Property and equipment at cost, gross | 5,581 | ' | 5,565 |
Equipment, furniture and fixtures | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Property and equipment at cost, gross | 208,944 | ' | 210,172 |
Leasehold improvements | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Property and equipment at cost, gross | $26,297 | ' | $26,429 |
Stock_Repurchase_Details
Stock Repurchase (Details) (USD $) | 1 Months Ended | 7 Months Ended | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Jun. 30, 2013 | Dec. 29, 2013 | Jan. 31, 2014 |
Subsequent event | |||
Stock Repurchase | ' | ' | ' |
Maximum repurchase amount under stock repurchase program | $100 | ' | ' |
Commitment of authorized repurchase amount under the Stock Repurchase Program | ' | ' | 30 |
Shares repurchased through open market purchases | ' | 855,200 | ' |
Average price of shares repurchased (in dollars per share) | ' | $23.39 | ' |
Cost of shares repurchased | ' | $20 | ' |
Stockholders_Equity_and_Stock_1
Stockholders' Equity and Stock Compensation Plans (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Stockholders' Equity and Stock Compensation Plans | ' | ' |
Stock-based compensation expense | $2.30 | $2.50 |
Options granted (in shares) | 354,238 | ' |
Restricted stock award | ' | ' |
Weighted-average fair value of stock options granted (in dollars per share) | $9.36 | ' |
Minimum | ' | ' |
Restricted stock award | ' | ' |
Exercise price of stock options granted (in dollars per share) | $28.58 | ' |
Maximum | ' | ' |
Restricted stock award | ' | ' |
Exercise price of stock options granted (in dollars per share) | $28.68 | ' |
Non-employee executive officers and employees | ' | ' |
Restricted stock award | ' | ' |
Vesting period | '4 years | ' |
Non-employee director | ' | ' |
Restricted stock award | ' | ' |
Vesting period | '1 year | ' |
Performance-based restricted stock | Non-employee directors and executive officers | ' | ' |
Restricted stock award | ' | ' |
Granted (in shares) | 117,067 | ' |
Granted, fair value (in dollars per share) | $28.58 | ' |
Vesting period | '3 years | ' |
Time-based restricted stock units | Non-employee directors, executive officers and employees | ' | ' |
Restricted stock award | ' | ' |
Granted (in shares) | 224,618 | ' |
Granted, fair value (in dollars per share) | $28.58 | ' |
Earnings_Per_Share_EPS_Details
Earnings Per Share (''EPS'') (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Number of weighted-average shares used to compute basic and diluted EPS: | ' | ' |
Net income attributable to Tetra Tech | $27,315 | $26,224 |
Weighted-average common shares outstanding - basic | 64,227,000 | 63,864,000 |
Effect of dilutive stock options and unvested restricted stock | 821,000 | 744,000 |
Weighted-average common stock outstanding - diluted | 65,048,000 | 64,608,000 |
Earnings per share attributable to Tetra Tech: | ' | ' |
Basic (in dollars per share) | $0.43 | $0.41 |
Diluted (in dollars per share) | $0.42 | $0.41 |
Options | ' | ' |
Antidilutive securities | ' | ' |
Securities excluded from the calculation of dilutive potential common shares | 400,000 | 1,400,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Income Taxes | ' | ' |
Effective tax rate (as a percent) | 33.80% | 35.00% |
Undistributed earnings of foreign subsidiaries | $29 | ' |
Loss carry-forwards in foreign jurisdictions, valuation allowance | $7.90 | ' |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 |
Financial information concerning reportable segments | ' | ' | ' |
Revenue | $645,848 | $658,545 | ' |
Operating income | 43,718 | 41,809 | ' |
Depreciation | 7,129 | 6,808 | ' |
Total assets | 1,788,673 | ' | 1,799,092 |
Inter-segment elimination | ' | ' | ' |
Financial information concerning reportable segments | ' | ' | ' |
Revenue | -23,935 | -21,978 | ' |
Corporate | ' | ' | ' |
Financial information concerning reportable segments | ' | ' | ' |
Operating income | -7,636 | -6,907 | ' |
Depreciation | 754 | 798 | ' |
Corporate | ' | ' | ' |
Financial information concerning reportable segments | ' | ' | ' |
Total assets | -236,854 | ' | -222,821 |
ECS | Operating segment | ' | ' | ' |
Financial information concerning reportable segments | ' | ' | ' |
Revenue | 234,887 | 278,168 | ' |
Operating income | 20,006 | 19,291 | ' |
Depreciation | 2,177 | 2,625 | ' |
Total assets | 904,051 | ' | 912,996 |
TSS | Operating segment | ' | ' | ' |
Financial information concerning reportable segments | ' | ' | ' |
Revenue | 220,690 | 243,924 | ' |
Operating income | 22,821 | 22,343 | ' |
Depreciation | 584 | 782 | ' |
Total assets | 690,481 | ' | 673,864 |
RCM | Operating segment | ' | ' | ' |
Financial information concerning reportable segments | ' | ' | ' |
Revenue | 214,206 | 158,431 | ' |
Operating income | 8,527 | 7,082 | ' |
Depreciation | 3,614 | 2,603 | ' |
Total assets | $430,995 | ' | $435,053 |
Reportable_Segments_Details_2
Reportable Segments (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 30, 2012 |
Revenue by client sector | ' | ' |
Threshold percentage for disclosure of revenue from a single client | 10.00% | ' |
Revenue | $645,848 | $658,545 |
Revenue | ' | ' |
Revenue by client sector | ' | ' |
Number of clients exceeding threshold | 0 | ' |
International | ' | ' |
Revenue by client sector | ' | ' |
Revenue | 163,933 | 167,518 |
U.S. commercial | ' | ' |
Revenue by client sector | ' | ' |
Revenue | 186,296 | 173,141 |
U.S. federal government | ' | ' |
Revenue by client sector | ' | ' |
Revenue | 195,184 | 227,390 |
U.S. state and local government | ' | ' |
Revenue by client sector | ' | ' |
Revenue | $100,435 | $90,496 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2013 |
Fair Value Measurements | ' |
Borrowing under the amended credit agreement | $205 |
Joint_Ventures_Details
Joint Ventures (Details) (USD $) | 3 Months Ended | ||
Dec. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | |
Aggregate revenue of consolidated joint ventures | $645,848,000 | $658,545,000 | ' |
Unconsolidated Joint Ventures | ' | ' | ' |
Equity in earnings from unconsolidated joint ventures | 650,000 | 649,000 | ' |
Carrying value of assets of unconsolidated joint ventures | 18,000,000 | ' | 24,000,000 |
Carrying value of liabilities of unconsolidated joint ventures | 15,600,000 | ' | 21,800,000 |
Consolidated Joint Ventures | ' | ' | ' |
Aggregate revenue of consolidated joint ventures | 2,600,000 | 4,000,000 | ' |
Restricted cash and cash equivalents of consolidated joint ventures | $1,000,000 | ' | $1,200,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 29, 2013 | Sep. 29, 2013 | |
item | item | |
Not designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Number of derivative instruments | 0 | 0 |
Interest rate swap agreements | Derivatives designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Amounts excluded from effectiveness testing | 0 | ' |
Interest rate swap agreements | Designated as cash flow hedges | Derivatives designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Number of derivative agreements | 2 | 3 |
Period of reclassification from accumulated other comprehensive income to interest expense | '12 months | ' |
Interest rate swap agreement bearing fixed rate 1.36% | Designated as cash flow hedges | Derivatives designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 51,250,000 | ' |
Fixed Rate (as a percent) | 1.36% | ' |
Interest rate swap agreement bearing fixed rate 1.34% | Designated as cash flow hedges | Derivatives designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 51,250,000 | ' |
Fixed Rate (as a percent) | 1.34% | ' |
Interest rate swap agreement bearing fixed rate 1.35% | Designated as cash flow hedges | Derivatives designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 51,250,000 | ' |
Fixed Rate (as a percent) | 1.35% | ' |
Interest rate swap agreement bearing fixed rate 1.23% | Designated as cash flow hedges | Derivatives designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 25,625,000 | ' |
Fixed Rate (as a percent) | 1.23% | ' |
Interest rate swap agreement bearing fixed rate 1.24% | Designated as cash flow hedges | Derivatives designated as hedging instruments | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 25,625,000 | ' |
Fixed Rate (as a percent) | 1.24% | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (Interest rate swap agreements, Derivatives designated as hedging instruments, Designated as cash flow hedges, Other current liabilities, USD $) | Dec. 29, 2013 | Sep. 29, 2013 |
In Thousands, unless otherwise specified | ||
Interest rate swap agreements | Derivatives designated as hedging instruments | Designated as cash flow hedges | Other current liabilities | ' | ' |
Derivative financial instruments | ' | ' |
Derivative liabilities, Fair Value of Derivative Instruments | $209 | $987 |
Reclassifications_Out_of_Accum2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | Dec. 29, 2013 | Sep. 29, 2013 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 | Dec. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | Foreign Currency Translation Adjustments | Foreign Currency Translation Adjustments | Loss on Derivative Instruments | Loss on Derivative Instruments | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | ||
Reclassifications out of accumulated other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Balances at the beginning of the period | ($19,413) | $1,858 | $2,340 | $31,110 | ($482) | ($93) | $1,858 | $31,017 |
Other comprehensive income (loss) before reclassifications | ' | ' | -22,096 | -5,599 | 308 | ' | -21,788 | -5,599 |
Reclassification adjustment of prior derivative settlement, net of tax | ' | ' | ' | ' | 517 | 121 | 517 | 121 |
Net current-period other comprehensive income (loss) | ' | ' | -22,096 | -5,599 | 825 | 121 | -21,271 | -5,478 |
Balances at the end of the period | ($19,413) | $1,858 | ($19,756) | $25,511 | $343 | $28 | ($19,413) | $25,539 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Mar. 31, 2013 | Apr. 17, 2012 | Jun. 28, 2013 |
BPR Triax | BPR Triax | Violation of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and related rules thereof | |
item | employee | item | |
Loss contingencies | ' | ' | ' |
Number of employees of BPR Triax charged with allegations of corruption | ' | 2 | ' |
Number of government contracts cited in testimony | 5 | ' | ' |
Number of officers against whom complaint was filed | ' | ' | 2 |