Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 28, 2014 | Jan. 26, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | TETRA TECH INC | |
Entity Central Index Key | 831641 | |
Document Type | 10-Q | |
Document Period End Date | 28-Dec-14 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -18 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 61,661,071 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 28, 2014 | Sep. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $98,890 | $122,379 |
Accounts receivable - net | 667,425 | 701,892 |
Prepaid expenses and other current assets | 53,040 | 52,256 |
Income taxes receivable | 25,338 | 22,076 |
Total current assets | 844,693 | 898,603 |
Property and equipment - net | 70,661 | 73,864 |
Investments in and advances to unconsolidated joint ventures | 1,936 | 2,140 |
Goodwill | 698,833 | 714,190 |
Intangible assets - net | 55,889 | 63,095 |
Other long-term assets | 24,124 | 24,512 |
Total assets | 1,696,136 | 1,776,404 |
Current liabilities: | ||
Accounts payable | 116,571 | 175,952 |
Accrued compensation | 96,838 | 110,186 |
Billings in excess of costs on uncompleted contracts | 106,882 | 103,343 |
Deferred income taxes | 19,916 | 20,387 |
Current portion of long-term debt | 10,907 | 10,989 |
Estimated contingent earn-out liabilities | 6,786 | 3,568 |
Other current liabilities | 78,467 | 79,436 |
Total current liabilities | 436,367 | 503,861 |
Deferred income taxes | 33,483 | 28,786 |
Long-term debt | 190,116 | 192,842 |
Long-term estimated contingent earn-out liabilities | 3,462 | |
Other long-term liabilities | 39,122 | 34,397 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock - Authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at December 28, 2014, and September 28, 2014 | ||
Common stock - Authorized, 150,000 shares of $0.01 par value; issued and outstanding, 62,169 and 62,591 shares at December 28, 2014, and September 28, 2014, respectively | 622 | 626 |
Additional paid-in capital | 390,214 | 402,516 |
Accumulated other comprehensive loss | -67,587 | -42,538 |
Retained earnings | 672,677 | 651,475 |
Tetra Tech stockholders' equity | 995,926 | 1,012,079 |
Noncontrolling interests | 1,122 | 977 |
Total equity | 997,048 | 1,013,056 |
Total liabilities and equity | $1,696,136 | $1,776,404 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2014 | Sep. 28, 2014 |
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 | 62,169 | 62,591 |
Common stock, shares outstanding | 62,169 | 62,591 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Condensed Consolidated Statements of Income | ||
Revenue | $581,056 | $645,848 |
Subcontractor costs | -143,976 | -162,857 |
Other costs of revenue | -358,281 | -396,528 |
Selling, general and administrative expenses | -42,187 | -47,375 |
Contingent consideration - fair value adjustments | 4,630 | |
Operating income | 36,612 | 43,718 |
Interest expense | -1,790 | -2,424 |
Income before income tax expense | 34,822 | 41,294 |
Income tax expense | -9,176 | -13,967 |
Net income including noncontrolling interests | 25,646 | 27,327 |
Net income attributable to noncontrolling interests | -71 | -12 |
Net income attributable to Tetra Tech | $25,575 | $27,315 |
Earnings per share attributable to Tetra Tech: | ||
Basic | $0.41 | $0.43 |
Diluted | $0.41 | $0.42 |
Weighted-average common shares outstanding: | ||
Basic | 62,452 | 64,227 |
Diluted | 63,112 | 65,048 |
Cash dividends paid per share | $0.07 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Consolidated Statements of Comprehensive Income | ||
Net income including noncontrolling interests | $25,646 | $27,327 |
Other comprehensive income, net of tax | ||
Foreign currency translation adjustments | -24,510 | -22,135 |
(Loss) gain on cash flow hedge valuations, net of tax | -480 | 826 |
Other comprehensive loss, net of tax | -24,990 | -21,309 |
Comprehensive income including noncontrolling interests | 656 | 6,018 |
Net income attributable to noncontrolling interests | -71 | -12 |
Foreign currency translation adjustments | -59 | 38 |
Comprehensive (income) loss attributable to noncontrolling interests | -130 | 26 |
Comprehensive income attributable to Tetra Tech | $526 | $6,044 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Cash flows from operating activities: | ||
Net income including noncontrolling interests | $25,646 | $27,327 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 12,992 | 15,914 |
Equity in earnings of unconsolidated joint ventures | -650 | -650 |
Distributions of earnings from unconsolidated joint ventures | 810 | 364 |
Stock-based compensation | 2,840 | 2,339 |
Excess tax benefits from stock-based compensation | -142 | -213 |
Deferred income taxes | 4,846 | 557 |
Provision for doubtful accounts | -1,150 | 3,069 |
Fair value adjustments to contingent consideration | -4,630 | |
Foreign exchange loss (gain) | 120 | -91 |
(Gain) loss on disposal of property and equipment | -51 | 1,035 |
Changes in operating assets and liabilities, net of effects of business acquisitions: | ||
Accounts receivable | 35,617 | 19,237 |
Prepaid expenses and other assets | 769 | -3,928 |
Accounts payable | -59,382 | -6,186 |
Accrued compensation | -13,348 | -13,646 |
Billings in excess of costs on uncompleted contracts | 3,539 | 12,671 |
Other liabilities | -6,276 | -7,790 |
Income taxes receivable/payable | -726 | -3,660 |
Net cash provided by operating activities | 5,454 | 41,719 |
Cash flows from investing activities: | ||
Capital expenditures | -7,137 | -6,602 |
Payments for business acquisitions, net of cash acquired | -10,678 | |
Payment received on note for sale of operation | 3,900 | |
Proceeds from sale of property and equipment | 5,216 | 1,926 |
Net cash used in investing activities | -1,921 | -11,454 |
Cash flows from financing activities: | ||
Payments on long-term debt | -15,926 | -233 |
Proceeds from borrowings | 13,493 | |
Payments of earn-out liabilities | -1,589 | |
Net change in overdrafts | -915 | |
Excess tax benefits from stock-based compensation | 142 | 213 |
Repurchases of common stock | -20,167 | |
Dividend paid | -4,372 | |
Net proceeds from issuance of common stock | 1,521 | 6,327 |
Net cash (used in) provided by financing activities | -25,309 | 3,803 |
Effect of foreign exchange rate changes on cash | -1,713 | -2,577 |
Net (decrease) increase in cash and cash equivalents | -23,489 | 31,491 |
Cash and cash equivalents at beginning of year | 122,379 | 129,305 |
Cash and cash equivalents at end of year | 98,890 | 160,796 |
Cash paid during the year for: | ||
Interest | 1,867 | 2,251 |
Income taxes, net of refunds received of $0.4 million and $0.8 million | $4,700 | $16,158 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Condensed Consolidated Statements of Cash Flows | ||
Income taxes, refunds received | $0.40 | $0.80 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 28, 2014 | |
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 28, 2014. | |
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. | |
Beginning in the first quarter of fiscal 2015, we reorganized our core operations to better align them with our markets, resulting in two renamed reportable segments. We now report our water resources, water and wastewater treatment, environment, and infrastructure engineering activities in the Water, Environment and Infrastructure (“WEI”) reportable segment. Our Resource Management and Energy (“RME”) reportable segment includes our oil and gas, energy, mining, waste management, remediation, utilities, and international development services. We report the results of the wind-down of our non-core construction activities in the Remediation and Construction Management (“RCM”) reportable segment. Prior year amounts for reportable segments have been revised to conform to the current-year presentation. | |
Accounts_Receivable_Net
Accounts Receivable - Net | 3 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
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 28, | September 28, | |||||||
2014 | 2014 | |||||||
(in thousands) | ||||||||
Billed | $ | 337,791 | $ | 351,693 | ||||
Unbilled | 342,336 | 363,050 | ||||||
Contract retentions | 23,621 | 26,929 | ||||||
Total accounts receivable – gross | 703,748 | 741,672 | ||||||
Allowance for doubtful accounts | -36,323 | -39,780 | ||||||
Total accounts receivable – net | $ | 667,425 | $ | 701,892 | ||||
Billings in excess of costs on uncompleted contracts | $ | 106,882 | $ | 103,343 | ||||
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 28, 2014 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 represents amounts that may become uncollectible or unrealizable in the future. We determine an estimated allowance for uncollectible accounts based on management’s consideration of trends in the actual and forecasted credit quality of our clients, including delinquency and payment history; type of client, such as a government agency or a commercial sector client; and general economic and particular industry conditions that may affect a client’s ability to pay. 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, excluding those related to claims, 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 a definitive 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 28, 2014 and September 28, 2014 included approximately $78 million and $79 million, respectively, related to claims, including requests for equitable adjustment, on contracts that provide for price redetermination. We regularly evaluate all 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 estimated. As a result of this assessment, we recognized revenue and an increase to operating income of $3.2 million in the first quarter of fiscal 2015 related to the settlement of claims with a federal government client. | ||||||||
Billed accounts receivable related to U.S. federal government contracts were $69.1 million and $57.4 million at December 28, 2014 and September 28, 2014, respectively. U.S. federal government unbilled receivables were $67.8 million and $73.2 million at December 28, 2014 and September 28, 2014, respectively. Other than the U.S. federal government, no single client accounted for more than 10% of our accounts receivable at December 28, 2014 and September 28, 2014. | ||||||||
We recognize revenue for most of our contracts using the percentage-of-completion method, primarily utilizing the cost-to-cost approach to estimate the progress towards completion in order to determine the amount of revenue and profit to recognize. Changes in those estimates could result in recognition of cumulative catch-up adjustments to the contract’s inception-to-date revenue, costs, and profit in the period in which such changes are made. As a result, we recognized net unfavorable operating income adjustments of $2.4 million during the first quarter of fiscal 2015 compared to $1.2 million in last year’s first quarter. Changes in revenue and cost estimates could also result in a projected loss that would be recorded immediately in earnings. As of December 28, 2014 and September 28, 2014, we recorded a liability for anticipated losses of $16.8 million and $18.6 million, respectively. The estimated cost to complete the related contracts as of December 28, 2014 was $99.1 million. | ||||||||
Mergers_and_Acquisitions
Mergers and Acquisitions | 3 Months Ended |
Dec. 28, 2014 | |
Mergers and Acquisitions | |
Mergers and Acquisitions | |
3.Mergers and Acquisitions | |
We made no acquisitions in the first quarter of fiscal 2015. In fiscal 2014, we made immaterial acquisitions that enhanced our service offerings and expanded our geographic presence in our WEI and RME reportable segments. | |
Goodwill additions resulting from the above business combinations are primarily attributable to the existing workforce of the acquired companies and the synergies expected to arise after the acquisitions. Specifically, the goodwill additions related to the fiscal 2014 acquisitions primarily represent the value of workforces with distinct expertise in the oil and gas and disaster preparedness markets. In addition, these acquired capabilities, when combined with our existing global consulting and engineering business, result in opportunities that allow us to provide services under contracts that could not have been pursued individually by either us or the acquired companies. The results of these acquisitions were included in the consolidated financial statements from their respective closing dates. 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 on 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 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 28, 2014). 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 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 net decreases in our contingent earn-out liabilities and reported related net gains in operating income of $4.6 million. The fiscal 2014 gains primarily resulted from updated valuations of the contingent consideration liability associated with our fiscal 2013 acquisition of Parkland Pipeline (“Parkland”). Parkland serves the oil and gas industry in Western Canada. Subsequent to the acquisition date, we lowered our income projections over the remaining earn-out periods and recorded corresponding reductions of the earn-out liabilities for Parkland. We also determined that these lower income projections were the result of temporary events, and would not negatively impact Parkland’s longer-term performance or result in goodwill impairment. We recorded no gains or losses related to changes in the estimated fair value of our contingent earn-out liabilities in the first quarter of fiscal 2015. | |
At December 28, 2014, there was a total maximum of $44.7 million of outstanding contingent consideration related to acquisitions. Of this amount, $6.8 million was estimated as the fair value and accrued on our condensed consolidated balance sheet. In the first quarter of fiscal 2015, we made no earn-out payments. In the first quarter of fiscal 2014, we made $1.6 million of earn-out payments to former owners and reported them as cash used in financing activities. | |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
4.Goodwill and Intangible Assets | ||||||||||||||||
Effective September 29, 2014, we reorganized our core operations to better align them with our markets, resulting in two renamed reportable segments. We now report our water resources, water and wastewater treatment, environment, and infrastructure engineering activities in the WEI reportable segment. Our RME reportable segment includes our oil and gas, energy, mining, waste management, remediation, utilities, and international development services. We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. Prior year amounts for reportable segments have been revised to conform to the current-year presentation. | ||||||||||||||||
The following table summarizes the changes in the carrying value of goodwill: | ||||||||||||||||
WEI | RME | RCM | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at September 28, 2014 | $ | 238,086 | $ | 476,104 | $ | – | $ | 714,190 | ||||||||
Goodwill additions | – | – | – | – | ||||||||||||
Foreign exchange impact | -5,452 | -9,905 | – | -15,357 | ||||||||||||
Balance at December 28, 2014 | $ | 232,634 | $ | 466,199 | $ | – | $ | 698,833 | ||||||||
We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our most recent review at June 30, 2014 (i.e. the first day of our fourth quarter in fiscal 2014), indicated that we had no impairment of goodwill, and all of our reporting units had estimated fair values that were in excess of their carrying values, including goodwill. | ||||||||||||||||
The reorganization of our core operations, described further in Note 10, “Reportable Segments”, also impacted the definition of our reporting units used for goodwill impairment testing. As a result, as of September 29, 2014, we performed impairment testing for goodwill under our new segment structure and determined that the estimated fair value of each reporting unit exceeded its corresponding carrying amount including recorded goodwill, and, as such, no impairment existed as of September 29, 2014. However, our Global Mining Practice (“GMP”) reporting unit had an estimated fair value that exceeded its carrying value by less than 20%. As of December 28, 2014, the goodwill amount for GMP was $65.6 million. Although we believe that our estimate of fair value for GMP is reasonable, if GMP’s financial performance falls significantly below our expectations or market prices for similar businesses decline, the goodwill for GMP could become impaired. | ||||||||||||||||
Foreign exchange impact relates to our foreign subsidiaries with functional currencies that are different than our reporting currency. The gross amounts of goodwill for WEI were $263.7 million and $269.2 million at December 28, 2014 and September 28, 2014, respectively, excluding $31.1 million of accumulated impairment. The gross amounts of goodwill for RME were $492.6 million and $502.5 million at December 28, 2014 and September 28, 2014, respectively, excluding $26.4 million of accumulated impairment. | ||||||||||||||||
The gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in “Intangible assets - net” on the condensed consolidated balance sheets, were as follows: | ||||||||||||||||
December 28, 2014 | September 28, 2014 | |||||||||||||||
Weighted- | Gross | Accumulated | Gross | Accumulated | ||||||||||||
Average | Amount | Amortization | Amount | Amortization | ||||||||||||
Remaining Life | ||||||||||||||||
(in Years) | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Non-compete agreements | 1.9 | $ | 1,033 | $ | -562 | $ | 1,086 | $ | -524 | |||||||
Client relations | 3.6 | 119,098 | -64,742 | 122,198 | -61,117 | |||||||||||
Backlog | 0.1 | 1,209 | -1,174 | 1,283 | -1,072 | |||||||||||
Technology and trade names | 1.9 | 2,815 | -1,788 | 2,917 | -1,676 | |||||||||||
Total | $ | 124,155 | $ | -68,266 | $ | 127,484 | $ | -64,389 | ||||||||
Foreign currency translation adjustments reduced net identifiable intangible assets by $1.3 million in the first quarter of fiscal 2015. Amortization expense for the identifiable intangible assets for the first quarters of fiscal 2015 and 2014 was $5.9 million and $8.6 million, respectively. Estimated amortization expense for the remainder of fiscal 2015 and succeeding years is as follows: | ||||||||||||||||
Amount | ||||||||||||||||
(in thousands) | ||||||||||||||||
2015 | $ | 14,327 | ||||||||||||||
2016 | 16,713 | |||||||||||||||
2017 | 13,987 | |||||||||||||||
2018 | 5,968 | |||||||||||||||
2019 | 2,887 | |||||||||||||||
Beyond | 2,007 | |||||||||||||||
Total | $ | 55,889 | ||||||||||||||
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Property and Equipment | ||||||||
Property and Equipment | ||||||||
5.Property and Equipment | ||||||||
Property and equipment consisted of the following: | ||||||||
December 28, | September 28, | |||||||
2014 | 2014 | |||||||
(in thousands) | ||||||||
Land and buildings | $ | 4,029 | $ | 4,029 | ||||
Equipment, furniture and fixtures | 189,955 | 204,298 | ||||||
Leasehold improvements | 24,050 | 24,478 | ||||||
Total property and equipment | 218,034 | 232,805 | ||||||
Accumulated depreciation | -147,373 | -158,941 | ||||||
Property and equipment, net | $ | 70,661 | $ | 73,864 | ||||
The depreciation expense related to property and equipment, including assets under capital leases, was $6.9 million and $7.1 million for the first quarters of fiscal 2015 and 2014, respectively. | ||||||||
Stock_Repurchase_and_Dividends
Stock Repurchase and Dividends | 3 Months Ended |
Dec. 28, 2014 | |
Stock Repurchase and Dividends. | |
Stock Repurchase and Dividends | |
6.Stock Repurchase and Dividends | |
In June 2013, our Board of Directors authorized a stock repurchase program under which we could repurchase up to $100 million of our common stock. Stock repurchases could be made on the open market or in privately negotiated transactions with third parties. From the inception of this program through September 28, 2014, we repurchased through open market purchases a total of 3.9 million shares at an average price of $25.59 per share, for a total cost of $100 million. | |
On November 10, 2014, the Board of Directors authorized a new stock repurchase program under which we may repurchase up to $200 million of our common stock over the next two years. In the first quarter of fiscal 2015, we repurchased through open market purchases a total of 760,926 shares at an average price of $26.50, for a total cost of $20.2 million under this new repurchase program. | |
On November 10, 2014, the Board of Directors declared a quarterly cash dividend of $0.07 per share to shareholders of record as of the close of business on November 26, 2014. The total dividend of $4.4 million was paid on December 14, 2014. | |
Subsequent Event. On January 26, 2015, the Board of Directors declared a quarterly cash dividend of $0.07 per share payable on February 26, 2015 to stockholders of record as of the close of business on February 11, 2015. | |
Stockholders_Equity_and_Stock_
Stockholders' Equity and Stock Compensation Plans | 3 Months Ended |
Dec. 28, 2014 | |
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 2015 and 2014 was $2.8 million and $2.3 million, respectively. The majority of these amounts were included in “Selling, general and administrative (“SG&A”) expenses” in our condensed consolidated statements of income. In the first quarter of fiscal 2015, we granted 266,420 stock options with an exercise price of $27.26 per share and an estimated weighted-average fair value of $8.20 per share. In addition, we awarded 155,265 performance shares units (“PSUs”) to our non-employee directors and executive officers at the fair value of $27.26 per share on the award date. All of the PSUs are performance-based and vest, if at all, after the conclusion of the three-year performance period. The number of PSUs that ultimately vest is based 50% on the growth in our diluted earnings per share and 50% on our total shareholder return over the vesting period. Additionally, we awarded 239,247 restricted stock units (“RSUs”) to our non-employee directors, executive officers and employees at the fair value of $27.26 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. 28, 2014 | ||||||||
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 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands, except per share data) | ||||||||
Net income attributable to Tetra Tech | $ | 25,575 | $ | 27,315 | ||||
Weighted-average common shares outstanding - basic | 62,452 | 64,227 | ||||||
Effect of dilutive stock options and unvested restricted stock | 660 | 821 | ||||||
Weighted-average common stock outstanding - diluted | 63,112 | 65,048 | ||||||
Earnings per share attributable to Tetra Tech: | ||||||||
Basic | $ | 0.41 | $ | 0.43 | ||||
Diluted | $ | 0.41 | $ | 0.42 | ||||
For the first quarters of fiscal 2015 and 2014, 0.8 million and 0.4 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. 28, 2014 | |
Income Taxes | |
Income Taxes | |
9.Income Taxes | |
The effective tax rates for the first quarters of fiscal 2015 and 2014 were 26.4% and 33.8%, respectively. During the first quarter of fiscal 2015, the Tax Increase Prevention Act of 2014 was signed into law. This law retroactively extended the federal research and experimentation credits (“R&E credits”) for amounts incurred from January 1, 2014 through December 31, 2014. Our income tax expense for the first quarter of fiscal 2015 includes a tax benefit of $1.2 million attributable to operating income during the last nine months of fiscal 2014, primarily related to the retroactive recognition of these tax credits. | |
At December 28, 2014, approximately $53 million of undistributed earnings of our foreign subsidiaries, primarily in Canada, 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 28, 2014, 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 ending September 27, 2015, 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. 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 $7.3 million has been provided in prior years. | |
Reportable_Segments
Reportable Segments | 3 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Reportable Segments | ||||||||
Reportable Segments | ||||||||
10.Reportable Segments | ||||||||
Beginning in the first quarter of fiscal 2015, we reorganized our core operations to better align them with our markets, resulting in two renamed reportable segments. We now report our water resources, water and wastewater treatment, environment, and infrastructure engineering activities in the WEI reportable segment. Our RME reportable segment includes our oil and gas, energy, mining, waste management, remediation, utilities, and international development services. We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. Prior year amounts for reportable segments have been revised to conform to the current-year presentation. | ||||||||
Our reportable segments are as follows: | ||||||||
WEI: WEI provides consulting and engineering services worldwide for a broad range of water and infrastructure-related needs in both developed and emerging economies. WEI supports both public and private clients including federal, state/provincial, and local governments, and global and local commercial and industrial clients. The primary markets for WEI’s services include water management, environmental restoration, government consulting, and a broad range of civil infrastructure requirements for facilities, transportation, and regional and local development. WEI’s services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance. | ||||||||
RME: RME provides consulting and engineering services worldwide for a broad range of resource management and energy needs. RME supports both private and public clients, including global industrial and commercial clients, U.S. federal agencies in large scale remediation, and major international development agencies. The primary markets for RME’s services include oil and gas, energy, mining, remediation, utilities, waste management, and international development. RME’s services span from early data collection and monitoring, to data analysis and information technology, to science and engineering applied research, to engineering design, to construction management and operations and maintenance. RME supports engineering, procurement and construction management (“EPCM”) for full service implementation of commercial projects, especially for oil and gas, industrial, and mining customers. | ||||||||
RCM: We report the results of the wind-down of our non-core construction activities in the RCM reportable segment. We plan to complete all remaining work performed in this segment primarily in fiscal 2015. | ||||||||
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 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Revenue | ||||||||
WEI | $ | 233,668 | $ | 229,330 | ||||
RME | 331,673 | 359,263 | ||||||
RCM | 34,430 | 82,082 | ||||||
Elimination of inter-segment revenue | -18,715 | -24,827 | ||||||
Total revenue | $ | 581,056 | $ | 645,848 | ||||
Operating Income (Loss) | ||||||||
WEI | $ | 21,832 | $ | 22,225 | ||||
RME | 25,720 | 33,260 | ||||||
RCM | -3,420 | -4,131 | ||||||
Corporate (1) | -7,520 | -7,636 | ||||||
Total operating income | $ | 36,612 | $ | 43,718 | ||||
Depreciation | ||||||||
WEI | $ | 1,232 | $ | 1,414 | ||||
RME | 3,679 | 4,163 | ||||||
RCM | 660 | 798 | ||||||
Corporate | 1,293 | 754 | ||||||
Total depreciation | $ | 6,864 | $ | 7,129 | ||||
(1)Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments. | ||||||||
December 28, | September 28, | |||||||
2014 | 2014 | |||||||
(in thousands) | ||||||||
Total Assets | ||||||||
WEI | $ | 267,615 | $ | 302,877 | ||||
RME | 421,493 | 442,911 | ||||||
RCM | 112,026 | 100,996 | ||||||
Corporate (1) | 895,002 | 929,620 | ||||||
Total assets | $ | 1,696,136 | $ | 1,776,404 | ||||
(1)Corporate assets consist of intercompany eliminations and assets not allocated to our reportable 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 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Client Sector | ||||||||
International (1) | $ | 147,061 | $ | 163,933 | ||||
U.S. commercial | 175,183 | 186,296 | ||||||
U.S. federal government (2) | 184,186 | 195,184 | ||||||
U.S. state and local government | 74,626 | 100,435 | ||||||
Total | $ | 581,056 | $ | 645,848 | ||||
(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. 28, 2014 | |
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 28, 2014). The carrying value of our long-term debt approximated fair value at December 28, 2014 and September 28, 2014. As of December 28, 2014 we had borrowings of $199.9 million outstanding under our amended credit agreement, which were used to fund our business acquisitions, working capital needs, and contingent earn-outs. | |
Joint_Ventures
Joint Ventures | 3 Months Ended |
Dec. 28, 2014 | |
Joint Ventures | |
Joint Ventures | |
12.Joint Ventures | |
Consolidated Joint Ventures | |
The aggregate revenue of our consolidated joint ventures was $2.2 million and $2.6 million for the first quarters of fiscal 2015 and 2014, respectively. The assets and liabilities of these consolidated joint ventures were immaterial at December 28, 2014 and September 28, 2014. 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 28, 2014 and September 28, 2014 were $1.7 million and $1.4 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 both the first quarter of fiscal 2015 and 2014, we reported $0.7 million of equity in earnings of unconsolidated joint ventures. 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 the aggregate, immaterial to our condensed consolidated financial statements. | |
The aggregate carrying values of the assets and liabilities of the unconsolidated joint ventures were $20.3 million and $18.4 million, respectively, at December 28, 2014, and $20.1 million and $18.0 million, respectively, at September 28, 2014. | |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||
Dec. 28, 2014 | ||||||||||
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 enter 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 (Level 2 measurement, as discribed in “Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the fiscal year ended September 28, 2014). 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 (loss). | ||||||||||
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 interest rate swap agreements that we designated as cash flow hedges to fix the variable interest rates on the borrowings under the term loan facility. At December 28, 2014, the effective portion of our interest rate swap agreements designated as cash flow hedges before tax effect was $0.3 million, all of which we expect to be reclassified from accumulated other comprehensive income to interest expense within the next 12 months. | ||||||||||
As of December 28, 2014, the total notional principal amount of our outstanding interest rate swap agreements which expire in May 2018 was $199.9 million and the weighted average fixed interest rate was 1.32%. | ||||||||||
The fair values of our outstanding derivatives designated as hedging instruments were as follows: | ||||||||||
Balance Sheet Location | December 28, | September 28, | ||||||||
2014 | 2014 | |||||||||
(in thousands) | ||||||||||
Interest rate swap agreements | Other current liabilities | $ | 523 | $ | 45 | |||||
The impact of the effective portions of derivative instruments in cash flow hedging relationships on income and other comprehensive income from our foreign currency forward contracts and interest rate swap agreements was immaterial for the first three months of fiscal 2015 and the fiscal year ended September 28, 2014. Additionally, there were no ineffective portions of derivative instruments. Accordingly, no amounts were excluded from effectiveness testing for our foreign currency forward contracts and interest rate swap agreements. We had no derivative instruments that were not designated as hedging instruments for fiscal 2014 and the first quarter of fiscal 2015. | ||||||||||
Reclassifications_Out_of_Accum
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | ||||||||||
Dec. 28, 2014 | |||||||||||
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 28, 2014 and December 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 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 | |||||
Balances at September 28, 2014 | $ | -43,085 | $ | 547 | $ | -42,538 | |||||
Other comprehensive income (loss) before reclassifications | -24,569 | 111 | -24,458 | ||||||||
Reclassification adjustment of prior derivative settlement, net of tax | – | -591 | -591 | ||||||||
Net current-period other comprehensive income (loss) | -24,569 | -480 | -25,049 | ||||||||
Balances at December 28, 2014 | $ | -67,654 | $ | 67 | $ | -67,587 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 28, 2014 | |
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 former 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 into 2016. 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. | |
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. A class certification hearing was held in March 2014, and on May 7, 2014, the court dismissed the action. On June 5, 2014, the plaintiff filed an appeal, and the defendants then filed a motion to dismiss. On November 3, 2014, the court dismissed the plaintiff’s appeal. The plaintiff has filed an appeal with the Supreme Court of Canada. | |
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. 28, 2014 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | |
16.Recent Accounting Pronouncements | |
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. The guidance became effective for us in the first quarter of fiscal 2015. The adoption of this guidance did not have a material impact on our consolidated financial statements. | |
In April 2014, the FASB issued guidance that changes the threshold for reporting discontinued operations and adds new disclosures. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on our operations and financial results. For disposals of individually significant components that do not qualify as discontinued operations, we must disclose pre-tax earnings of the disposed component. This guidance is effective for us prospectively in the first quarter of fiscal 2016. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued or available for issuance. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. | |
In May 2014, the FASB issued an accounting standard that will supersede existing revenue recognition guidance under current U.S. GAAP. The new standard is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The accounting standard is effective for us in the first quarter of fiscal year 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this standard, and management is currently evaluating which transition approach to use. We are currently in the process of assessing what impact this new standard may have on our condensed consolidated financial statements. | |
In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The update also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. This guidance is effective for us in the first quarter of fiscal 2017. We do not expect the adoption of this guidance to have an impact on our condensed consolidated financial statements. | |
In January 2015, the FASB issued an amendment to the accounting guidance related to the income statement presentation of extraordinary and unusual items. The amendment eliminates from U.S. GAAP the concept of extraordinary items. This guidance is effective for us in the first quarter of fiscal 2017. We do not expect the adoption of this guidance to have an impact on our condensed consolidated financial statements. | |
Accounts_Receivable_Net_Tables
Accounts Receivable - Net (Tables) | 3 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Accounts Receivable - Net | ||||||||
Net accounts receivable and billings in excess of costs on uncompleted contracts | ||||||||
December 28, | September 28, | |||||||
2014 | 2014 | |||||||
(in thousands) | ||||||||
Billed | $ | 337,791 | $ | 351,693 | ||||
Unbilled | 342,336 | 363,050 | ||||||
Contract retentions | 23,621 | 26,929 | ||||||
Total accounts receivable – gross | 703,748 | 741,672 | ||||||
Allowance for doubtful accounts | -36,323 | -39,780 | ||||||
Total accounts receivable – net | $ | 667,425 | $ | 701,892 | ||||
Billings in excess of costs on uncompleted contracts | $ | 106,882 | $ | 103,343 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||
Summary of changes in the carrying value of goodwill | ||||||||||||||||
WEI | RME | RCM | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at September 28, 2014 | $ | 238,086 | $ | 476,104 | $ | – | $ | 714,190 | ||||||||
Goodwill additions | – | – | – | – | ||||||||||||
Foreign exchange impact | -5,452 | -9,905 | – | -15,357 | ||||||||||||
Balance at December 28, 2014 | $ | 232,634 | $ | 466,199 | $ | – | $ | 698,833 | ||||||||
Summary of acquired identifiable intangible assets with finite useful lives | ||||||||||||||||
December 28, 2014 | September 28, 2014 | |||||||||||||||
Weighted- | Gross | Accumulated | Gross | Accumulated | ||||||||||||
Average | Amount | Amortization | Amount | Amortization | ||||||||||||
Remaining Life | ||||||||||||||||
(in Years) | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Non-compete agreements | 1.9 | $ | 1,033 | $ | -562 | $ | 1,086 | $ | -524 | |||||||
Client relations | 3.6 | 119,098 | -64,742 | 122,198 | -61,117 | |||||||||||
Backlog | 0.1 | 1,209 | -1,174 | 1,283 | -1,072 | |||||||||||
Technology and trade names | 1.9 | 2,815 | -1,788 | 2,917 | -1,676 | |||||||||||
Total | $ | 124,155 | $ | -68,266 | $ | 127,484 | $ | -64,389 | ||||||||
Estimated amortization expense for the succeeding five years and beyond | ||||||||||||||||
Amount | ||||||||||||||||
(in thousands) | ||||||||||||||||
2015 | $ | 14,327 | ||||||||||||||
2016 | 16,713 | |||||||||||||||
2017 | 13,987 | |||||||||||||||
2018 | 5,968 | |||||||||||||||
2019 | 2,887 | |||||||||||||||
Beyond | 2,007 | |||||||||||||||
Total | $ | 55,889 | ||||||||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Property and Equipment | ||||||||
Schedule of components of property and equipment | ||||||||
December 28, | September 28, | |||||||
2014 | 2014 | |||||||
(in thousands) | ||||||||
Land and buildings | $ | 4,029 | $ | 4,029 | ||||
Equipment, furniture and fixtures | 189,955 | 204,298 | ||||||
Leasehold improvements | 24,050 | 24,478 | ||||||
Total property and equipment | 218,034 | 232,805 | ||||||
Accumulated depreciation | -147,373 | -158,941 | ||||||
Property and equipment, net | $ | 70,661 | $ | 73,864 | ||||
Earnings_Per_Share_EPS_Tables
Earnings Per Share ("EPS") (Tables) | 3 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Earnings Per Share ("EPS") | ||||||||
Schedule of number of weighted-average shares used to compute basic and diluted EPS | ||||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands, except per share data) | ||||||||
Net income attributable to Tetra Tech | $ | 25,575 | $ | 27,315 | ||||
Weighted-average common shares outstanding - basic | 62,452 | 64,227 | ||||||
Effect of dilutive stock options and unvested restricted stock | 660 | 821 | ||||||
Weighted-average common stock outstanding - diluted | 63,112 | 65,048 | ||||||
Earnings per share attributable to Tetra Tech: | ||||||||
Basic | $ | 0.41 | $ | 0.43 | ||||
Diluted | $ | 0.41 | $ | 0.42 | ||||
Reportable_Segments_Tables
Reportable Segments (Tables) | 3 Months Ended | |||||||
Dec. 28, 2014 | ||||||||
Reportable Segments | ||||||||
Summarized financial information of reportable segments | ||||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Revenue | ||||||||
WEI | $ | 233,668 | $ | 229,330 | ||||
RME | 331,673 | 359,263 | ||||||
RCM | 34,430 | 82,082 | ||||||
Elimination of inter-segment revenue | -18,715 | -24,827 | ||||||
Total revenue | $ | 581,056 | $ | 645,848 | ||||
Operating Income (Loss) | ||||||||
WEI | $ | 21,832 | $ | 22,225 | ||||
RME | 25,720 | 33,260 | ||||||
RCM | -3,420 | -4,131 | ||||||
Corporate (1) | -7,520 | -7,636 | ||||||
Total operating income | $ | 36,612 | $ | 43,718 | ||||
Depreciation | ||||||||
WEI | $ | 1,232 | $ | 1,414 | ||||
RME | 3,679 | 4,163 | ||||||
RCM | 660 | 798 | ||||||
Corporate | 1,293 | 754 | ||||||
Total depreciation | $ | 6,864 | $ | 7,129 | ||||
(1)Includes amortization of intangibles, other costs, and other income not allocable to our reportable segments. | ||||||||
December 28, | September 28, | |||||||
2014 | 2014 | |||||||
(in thousands) | ||||||||
Total Assets | ||||||||
WEI | $ | 267,615 | $ | 302,877 | ||||
RME | 421,493 | 442,911 | ||||||
RCM | 112,026 | 100,996 | ||||||
Corporate (1) | 895,002 | 929,620 | ||||||
Total assets | $ | 1,696,136 | $ | 1,776,404 | ||||
(1)Corporate assets consist of intercompany eliminations and assets not allocated to our reportable segments including goodwill, intangible assets, deferred income taxes and certain other assets. | ||||||||
Summary of revenue by client sector | ||||||||
Three Months Ended | ||||||||
December 28, | December 29, | |||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Client Sector | ||||||||
International (1) | $ | 147,061 | $ | 163,933 | ||||
U.S. commercial | 175,183 | 186,296 | ||||||
U.S. federal government (2) | 184,186 | 195,184 | ||||||
U.S. state and local government | 74,626 | 100,435 | ||||||
Total | $ | 581,056 | $ | 645,848 | ||||
(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. 28, 2014 | ||||||||||
Derivative Financial Instruments | ||||||||||
Schedule of fair values of the entity's outstanding derivatives designated as hedging instruments | ||||||||||
Balance Sheet Location | December 28, | September 28, | ||||||||
2014 | 2014 | |||||||||
(in thousands) | ||||||||||
Interest rate swap agreements | Other current liabilities | $ | 523 | $ | 45 | |||||
Reclassifications_Out_of_Accum1
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||||
Dec. 28, 2014 | |||||||||||
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 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 | |||||
Balances at September 28, 2014 | $ | -43,085 | $ | 547 | $ | -42,538 | |||||
Other comprehensive income (loss) before reclassifications | -24,569 | 111 | -24,458 | ||||||||
Reclassification adjustment of prior derivative settlement, net of tax | – | -591 | -591 | ||||||||
Net current-period other comprehensive income (loss) | -24,569 | -480 | -25,049 | ||||||||
Balances at December 28, 2014 | $ | -67,654 | $ | 67 | $ | -67,587 | |||||
Basis_of_Presentation_Details
Basis of Presentation (Details) | 3 Months Ended |
Dec. 28, 2014 | |
item | |
Basis of Presentation | |
Number Of Renamed Reportable Segments | 2 |
Accounts_Receivable_Net_Detail
Accounts Receivable - Net (Details) (USD $) | 3 Months Ended | ||
Dec. 28, 2014 | Sep. 28, 2014 | Dec. 29, 2013 | |
Accounts Receivable - Net | |||
Billed | $337,791,000 | $351,693,000 | |
Unbilled | 342,336,000 | 363,050,000 | |
Contract retentions | 23,621,000 | 26,929,000 | |
Total accounts receivable - gross | 703,748,000 | 741,672,000 | |
Allowance for doubtful accounts | -36,323,000 | -39,780,000 | |
Total accounts receivable - net | 667,425,000 | 701,892,000 | |
Billings in excess of costs on uncompleted contracts | 106,882,000 | 103,343,000 | |
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 | 78,000,000 | 79,000,000 | |
Revenue recognized related to the evaluation of claim amounts | 3,200,000 | ||
Increase in operating income related to the evaluation of claim amounts | 3,200,000 | ||
Billed accounts receivable related to U.S. federal government contracts | 69,100,000 | 57,400,000 | |
U.S. federal government unbilled receivables | 67,800,000 | 73,200,000 | |
Threshold percentage for disclosure of accounts receivable from a single client | 10.00% | 10.00% | |
Revenue Recognition and Contract Costs | |||
Net unfavorable operating income adjustments | 2,400,000 | 1,200,000 | |
Liability for anticipated losses | 16,800,000 | 18,600,000 | |
Estimated cost to complete the related contracts | $99,100,000 | ||
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 | ||
Dec. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 | |
item | |||
Business acquisition | |||
Number of acquisitions | 0 | ||
Estimated fair value of contingent earn-out obligations | $6,800,000 | ||
Aggregate maximum of contingent consideration | 44,700,000 | ||
Net decreases in our contingent earn-out liabilities | 0 | 4,600,000 | |
Net gains on fair value adjustment in operating income | 4,600,000 | ||
Goodwill balance | 698,833,000 | 714,190,000 | |
Earn-outs paid to former owners reported as cash used in financing activities | $0 | $1,600,000 | |
Maximum | |||
Business acquisition | |||
Earn out period for operating income projection | 3 years | ||
Minimum | |||
Business acquisition | |||
Earn out period for operating income projection | 2 years |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | |
Dec. 28, 2014 | Sep. 28, 2014 | |
Goodwill information | ||
Number Of Renamed Reportable Segments | 2 | |
Goodwill | $698,833,000 | |
Goodwill | ||
Balance at beginning of the period | 714,190,000 | |
Foreign exchange impact | -15,357,000 | |
Balance at end of the period | 698,833,000 | |
Impairment of goodwill | 0 | |
GMP | ||
Goodwill information | ||
Goodwill | 65,600,000 | |
Goodwill | ||
Balance at end of the period | 65,600,000 | |
WEI | ||
Goodwill information | ||
Goodwill | 232,634,000 | |
Goodwill | ||
Balance at beginning of the period | 238,086,000 | |
Foreign exchange impact | -5,452,000 | |
Balance at end of the period | 232,634,000 | |
Gross amounts of goodwill | 263,700,000 | 269,200,000 |
Accumulated impairment | 31,100,000 | 31,100,000 |
RME | ||
Goodwill information | ||
Goodwill | 466,199,000 | |
Goodwill | ||
Balance at beginning of the period | 476,104,000 | |
Foreign exchange impact | -9,905,000 | |
Balance at end of the period | 466,199,000 | |
Gross amounts of goodwill | 492,600,000 | 502,500,000 |
Accumulated impairment | $26,400,000 | $26,400,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details 2) (USD $) | 3 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 | |
Finite-lived intangible assets | |||
Gross Amount | $124,155,000 | $127,484,000 | |
Accumulated Amortization | -68,266,000 | -64,389,000 | |
Foreign currency translation adjustments | 1,300,000 | ||
Amortization expense for identifiable intangible assets | 5,900,000 | 8,600,000 | |
Estimated amortization expense | |||
2015 | 14,327,000 | ||
2016 | 16,713,000 | ||
2017 | 13,987,000 | ||
2018 | 5,968,000 | ||
2019 | 2,887,000 | ||
Beyond | 2,007,000 | ||
Total | 55,889,000 | ||
Non-compete agreements | |||
Finite-lived intangible assets | |||
Weighted-Average Remaining Life | 1 year 10 months 24 days | ||
Gross Amount | 1,033,000 | 1,086,000 | |
Accumulated Amortization | -562,000 | -524,000 | |
Client relations | |||
Finite-lived intangible assets | |||
Weighted-Average Remaining Life | 3 years 7 months 6 days | ||
Gross Amount | 119,098,000 | 122,198,000 | |
Accumulated Amortization | -64,742,000 | -61,117,000 | |
Backlog | |||
Finite-lived intangible assets | |||
Weighted-Average Remaining Life | 1 month 6 days | ||
Gross Amount | 1,209,000 | 1,283,000 | |
Accumulated Amortization | -1,174,000 | -1,072,000 | |
Technology and trade names | |||
Finite-lived intangible assets | |||
Weighted-Average Remaining Life | 1 year 10 months 24 days | ||
Gross Amount | 2,815,000 | 2,917,000 | |
Accumulated Amortization | ($1,788,000) | ($1,676,000) |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 |
Property and Equipment | |||
Property and equipment at cost, gross | $218,034 | $232,805 | |
Accumulated depreciation | -147,373 | -158,941 | |
Property and equipment, net | 70,661 | 73,864 | |
Depreciation expense related to property and equipment, including assets under capital leases | 6,864 | 7,129 | |
Land and buildings | |||
Property and Equipment | |||
Property and equipment at cost, gross | 4,029 | 4,029 | |
Equipment, furniture and fixtures | |||
Property and Equipment | |||
Property and equipment at cost, gross | 189,955 | 204,298 | |
Leasehold improvements | |||
Property and Equipment | |||
Property and equipment at cost, gross | $24,050 | $24,478 |
Stock_Repurchase_and_Dividends1
Stock Repurchase and Dividends (Details) (USD $) | 0 Months Ended | 3 Months Ended | 16 Months Ended | 0 Months Ended | ||
Dec. 14, 2014 | Nov. 10, 2014 | Dec. 28, 2014 | Sep. 28, 2014 | Jan. 26, 2015 | Jun. 30, 2013 | |
Maximum repurchase amount under stock repurchase program | $200,000,000 | $100,000,000 | ||||
Shares repurchased through open market purchases | 760,926 | 3,900,000 | ||||
Average price of shares repurchased (in dollars per share) | $26.50 | $25.59 | ||||
Cost of shares repurchased | 20,200,000 | 100,000,000 | ||||
Payment of ordinary dividends | $4,400,000 | $4,372,000 | ||||
Quarterly cash dividend declared (in dollars per share) | $0.07 | |||||
Cash dividends paid per share | $0.07 | |||||
Period of stock repurchase program | 2 years | |||||
Subsequent Event | ||||||
Quarterly cash dividend declared (in dollars per share) | $0.07 |
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. 28, 2014 | Dec. 29, 2013 |
Stockholders' Equity and Stock Compensation Plans | ||
Stock-based compensation expense | $2.80 | $2.30 |
Options granted (in shares) | 266,420 | |
Restricted stock award | ||
Exercise price of stock options granted (in dollars per share) | $27.26 | |
Weighted-average fair value of stock options granted (in dollars per share) | $8.20 | |
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 | ||
Restricted stock award | ||
Percentage of shares that ultimately vest depending on fiscal year earnings per share growth rates | 50.00% | |
Percentage of shares that ultimately vest depending on fiscal year shareholder vesting period | 50.00% | |
Performance-based restricted stock | Non-employee directors and executive officers | ||
Restricted stock award | ||
Granted (in shares) | 155,265 | |
Granted, fair value (in dollars per share) | $27.26 | |
Vesting period | 3 years | |
Time-based restricted stock | Non-employee directors, executive officers and employees | ||
Restricted stock award | ||
Granted (in shares) | 239,247 | |
Granted, fair value (in dollars per share) | $27.26 |
Earnings_Per_Share_EPS_Details
Earnings Per Share (''EPS'') (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Number of weighted-average shares used to compute basic and diluted EPS: | ||
Net income attributable to Tetra Tech | $25,575 | $27,315 |
Weighted-average common shares outstanding - basic | 62,452,000 | 64,227,000 |
Effect of diluted stock options and unvested restricted stock | 660,000 | 821,000 |
Weighted-average common stock outstanding - diluted | 63,112,000 | 65,048,000 |
Earnings per share attributable to Tetra Tech: | ||
Basic | $0.41 | $0.43 |
Diluted | $0.41 | $0.42 |
Stock options | ||
Antidilutive securities | ||
Securities excluded from the calculation of dilutive potential common shares | 800,000 | 400,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Sep. 27, 2015 |
Income Taxes | |||
Effective tax rate (as a percent) | 26.40% | 33.80% | |
Undistributed earnings of foreign subsidiaries | $53 | ||
Loss carry-forwards in foreign jurisdictions, valuation allowance | 7.3 | ||
Represents the period of projected cumulative pre-tax losses in certain foreign jurisdictions | 36 months | ||
R&E credits | $1.20 |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 |
item | |||
Financial information concerning reportable segments | |||
Number of renamed reportable segments | 2 | ||
Revenue | $581,056 | $645,848 | |
Operating income (loss) | 36,612 | 43,718 | |
Depreciation | 6,864 | 7,129 | |
Total assets | 1,696,136 | 1,776,404 | |
Inter-segment elimination | |||
Financial information concerning reportable segments | |||
Revenue | -18,715 | -24,827 | |
Corporate | |||
Financial information concerning reportable segments | |||
Operating income (loss) | -7,520 | -7,636 | |
Depreciation | 1,293 | 754 | |
Corporate | |||
Financial information concerning reportable segments | |||
Total assets | 895,002 | 929,620 | |
WEI | Operating segment | |||
Financial information concerning reportable segments | |||
Revenue | 233,668 | 229,330 | |
Operating income (loss) | 21,832 | 22,225 | |
Depreciation | 1,232 | 1,414 | |
Total assets | 267,615 | 302,877 | |
RME | Operating segment | |||
Financial information concerning reportable segments | |||
Revenue | 331,673 | 359,263 | |
Operating income (loss) | 25,720 | 33,260 | |
Depreciation | 3,679 | 4,163 | |
Total assets | 421,493 | 442,911 | |
RCM | Operating segment | |||
Financial information concerning reportable segments | |||
Revenue | 34,430 | 82,082 | |
Operating income (loss) | -3,420 | -4,131 | |
Depreciation | 660 | 798 | |
Total assets | $112,026 | $100,996 |
Reportable_Segments_Details_2
Reportable Segments (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Revenue by client sector | ||
Threshold percentage for disclosure of revenue from a single client | 10.00% | |
Revenue | $581,056 | $645,848 |
Revenue | ||
Revenue by client sector | ||
Number of clients exceeding threshold | 0 | |
International | ||
Revenue by client sector | ||
Revenue | 147,061 | 163,933 |
U.S. commercial | ||
Revenue by client sector | ||
Revenue | 175,183 | 186,296 |
U.S. federal government | ||
Revenue by client sector | ||
Revenue | 184,186 | 195,184 |
U.S. state and local government | ||
Revenue by client sector | ||
Revenue | $74,626 | $100,435 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 28, 2014 |
In Millions, unless otherwise specified | |
Fair Value Measurements | |
Outstanding borrowings under the amended credit agreement | $199.90 |
Joint_Ventures_Details
Joint Ventures (Details) (USD $) | 3 Months Ended | ||
Dec. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 | |
Aggregate revenue of consolidated joint ventures | $581,056,000 | $645,848,000 | |
Unconsolidated Joint Ventures | |||
Equity in earnings from unconsolidated joint ventures | 650,000 | 650,000 | |
Carrying value of assets of unconsolidated joint ventures | 20,300,000 | 20,100,000 | |
Carrying value of liabilities of unconsolidated joint ventures | 18,400,000 | 18,000,000 | |
Consolidated Joint Ventures | |||
Aggregate revenue of consolidated joint ventures | 2,200,000 | 2,600,000 | |
Cash and cash equivalents of consolidated joint ventures | $1,700,000 | $1,400,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2014 | Sep. 28, 2014 | Dec. 29, 2013 | Sep. 29, 2013 |
item | item | |||
Derivative financial instruments | ||||
Notional Amount | $199.90 | |||
Weighted average fixed rate | 1.32% | |||
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 | 0 | ||
Interest rate swap agreements | Designated as cash flow hedges | Derivatives designated as hedging instruments | ||||
Derivative financial instruments | ||||
Number of derivative agreements | 2 | 3 | ||
Amount of effective portion of derivatives before tax effect | $0.30 | |||
Period of reclassification from accumulated other comprehensive income to interest expense | 12 months |
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. 28, 2014 | Sep. 28, 2014 |
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 | $523 | $45 |
Reclassifications_Out_of_Accum2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Sep. 28, 2014 |
Reclassifications out of accumulated other comprehensive income (loss) | |||
Balances at the beginning of the period | ($42,538) | ||
Balances at the end of the period | -67,587 | -42,538 | |
Foreign Currency Translation Adjustments | |||
Reclassifications out of accumulated other comprehensive income (loss) | |||
Balances at the beginning of the period | -43,085 | 2,340 | |
Other comprehensive income (loss) before reclassifications | -24,569 | -22,096 | |
Net current-period other comprehensive (loss) income | -24,569 | -22,096 | |
Balances at the end of the period | -67,654 | -19,756 | |
Loss on Derivative Instruments | |||
Reclassifications out of accumulated other comprehensive income (loss) | |||
Balances at the beginning of the period | 547 | -482 | |
Other comprehensive income (loss) before reclassifications | 111 | 308 | |
Net current-period other comprehensive (loss) income | -480 | 825 | |
Balances at the end of the period | 67 | 343 | |
Loss on Derivative Instruments | Foreign exchange contracts | |||
Reclassifications out of accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income | -591 | 517 | |
Accumulated Other Comprehensive Income | |||
Reclassifications out of accumulated other comprehensive income (loss) | |||
Balances at the beginning of the period | -42,538 | 1,858 | |
Other comprehensive income (loss) before reclassifications | -24,458 | -21,788 | |
Net current-period other comprehensive (loss) income | -25,049 | -21,271 | |
Balances at the end of the period | -67,587 | -19,413 | |
Accumulated Other Comprehensive Income | Foreign exchange contracts | |||
Reclassifications out of accumulated other comprehensive income (loss) | |||
Amounts reclassified from accumulated other comprehensive income | ($591) | $517 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (BPR Triax) | Apr. 17, 2012 |
item | |
BPR Triax | |
Loss contingencies | |
Number of former employees of BPR Triax charged with allegations of corruption | 2 |