15. Segment Information

During the second fiscal quarter of 2016, we reorganized our operations around four global lines of business (“LOB”), which also serve as our operating segments: Petroleum & Chemicals, Buildings & Infrastructure, Aerospace & Technology, and Industrial. We determined that this new organization would better support the needs of managing each unique set of customers that fall within each segment. As a result of the new organization, we subsequently realigned our internal reporting structures to enable our Chief Executive Officer, who is also our Chief Operating Decision Maker (“CODM”), to evaluate the performance of each of these segments and make appropriate resource allocations among each of the segments. For purposes of our goodwill impairment testing, we have determined that our operating segments are also our reporting units based on management’s conclusion that the components comprising each of our operating segments share similar economic characteristics and meet the aggregation criteria in accordance with ASC 350.

Under the current organization, each LOB has a president that reports directly to the Company's Chairman and CEO or CODM. In addition, the sales function, which had been managed centrally for many years, is now managed on an LOB basis, and accordingly, the associated cost is now embedded in the new segments and reported to the respective LOB presidents. In addition, a portion of the costs of other support functions (e.g., finance, legal, human resources, and information technology) is allocated to each LOB using methodologies which, we believe, effectively attribute the cost of these support functions to the revenue generating activities of the Company on a rational basis. The cost of the Company’s cash incentive plan, the Management Incentive Plan (“MIP”) and the expense associated with the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (“1999 SIP”) have likewise been charged to the LOBs except for those amounts determined to relate to the business as a whole (which amounts remain in corporate’s results of operations).

Financial information for each LOB is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. The Company generally does not track assets by LOB, nor does it provide such information to the CODM.

The CODM evaluates the operating performance of our LOBs using operating profit, which is defined as margin less “corporate charges” (e.g., the allocated amounts described above). The Company incurs certain SG&A costs which relate to its business as a whole which are not allocated to the LOBs.

The following tables present total revenues and operating profit for each reportable segment (in thousands) and includes a reconciliation of segment operating profit to total U.S. GAAP operating profit by including certain corporate-level expenses and expenses relating to the Restructuring and other charges and CH2M professional fees and integration costs (in thousands).

		For the Years Ended
	September 29, 2017		September 30, 2016		October 2, 2015
Revenues from External Customers:
Aerospace & Technology	$	2,360,613	$	2,657,433	$	2,924,753
Buildings & Infrastructure		2,452,321		2,253,512		2,458,379
Industrial		2,743,662		2,793,713		2,517,571
Petroleum & Chemicals		2,466,192		3,259,499		4,214,129
Total	$	10,022,788	$	10,964,157	$	12,114,832

	For the Years Ended
	September 29, 2017			September 30, 2016			October 2, 2015
Operating Profit:
Aerospace & Technology	$	202,595		$	203,808		$	205,368
Buildings & Infrastructure (1)		193,455			174,648			145,299
Industrial		115,262			81,268			126,531
Petroleum & Chemicals		113,858			126,604			138,351
Total Segment Operating Profit		625,170			586,328			615,549
Other Corporate Items		(81,595	)		(60,100	)		(15,739	)
Restructuring and Other Charges		(134,206	)		(187,630	)		(154,283	)
CH2M Professional Fees and Integration Costs		(17,100	)		—			—
Total U.S. GAAP Operating Profit		392,269			338,598			445,527
Gain (Loss) on disposal of business and investments		10,880			(41,410	)		(2,909	)
Total Other Expense (2)		(9,932	)		(10,465	)		(12,481	)
Earnings Before Taxes	$	393,217		$	286,723		$	430,137

(1)

Excludes $ 23,844 in restructuring and other charges for the fiscal year ended September 29, 2017.

(2)

Years ending September 29, 2017 and September 30, 2016 include Restructuring and other charges of $1,233 and $277, respectively.

Included in “other corporate items” in the above table are costs and expenses which relate to general corporate activities as well as corporate-managed benefit and insurance programs. Such costs and expenses include: (i) those elements of SG&A expenses relating to the business as a whole; (ii) those elements of the Management Incentive Plan and the 1999 SIP relating to corporate personnel whose other compensation costs are not allocated to the LOBs; (iii) the amortization of intangible assets acquired as part of purchased business combinations; (iv) the quarterly variances between the Company’s actual costs of certain of its self-insured integrated risk and employee benefit programs and amounts charged to the LOBs; and (v) certain adjustments relating to costs associated with the Company’s international defined benefit pension plans. In addition, “other corporate items” includes adjustments to contract margins (both positive and negative) associated with projects where it has been determined, in the opinion of management, that such adjustments are not indicative of the performance of the related LOB and therefore should not be attributed to the LOB.

Included in gain on disposal of business and investments for the year ended September 29, 2017 was a gain on the sale of the Company’s ownership interest in the Neste Jacobs joint venture. Included in loss on disposal of business and investments for the year ended September 30, 2016 was the losses associated with the sale of the Company’s French subsidiary and a non-cash write-off on an equity investment.

We provide a broad range of technical, professional, and construction services including engineering, design, and architectural services; construction and construction management services; operations and maintenance services; and process, scientific, and systems consulting services. We provide our services through offices and subsidiaries located primarily in North America, South America, Europe, the Middle East, India, Australia, Africa, and Asia. We provide our services under cost-reimbursable and fixed-price contracts.

The following tables present total services revenues for each reportable segment for the three years ended September 29, 2017, September 30, 2016 and October 2, 2015 (in thousands):

		For the Year Ended
		September 29, 2017
		Aerospace & Technology	Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total
Technical Professional Services Revenues
Project Services	$	960,374	$	2,185,220	$	196,171	$	1,464,098	$	4,805,863
Process, Scientific and Systems Consulting		774,063		—		—		31,081		805,144
Total Technical Professional Services Revenues		1,734,437		2,185,220		196,171		1,495,179		5,611,007

Field Services Revenues
Construction		250,956		254,118		1,901,299		967,888		3,374,261
Operations and Maintenance ("O&M")		375,220		12,983		646,192		3,125		1,037,520
Total Field Services Revenues		626,176		267,101		2,547,491		971,013		4,411,781
Total Revenues	$	2,360,613	$	2,452,321	$	2,743,662	$	2,466,192	$	10,022,788

	For the Year Ended
	September 30, 2016
		Aerospace & Technology	Buildings & Infrastructure		Industrial		Petroleum & Chemicals		Total
Technical Professional Services Revenues
Project Services	$	910,290	$	2,094,282	$	891,018	$	1,843,250	$	5,738,840
Process, Scientific and Systems Consulting		803,654		—		—		48,675		852,329
Total Technical Professional Services Revenues		1,713,944		2,094,282		891,018		1,891,925		6,591,169

Field Services Revenues
Construction		171,614		119,463		1,601,562		1,366,251		3,258,890
Operations and Maintenance ("O&M")		771,875		39,767		301,133		1,323		1,114,098
Total Field Services Revenues		943,489		159,230		1,902,695		1,367,574		4,372,988
Total Revenues	$	2,657,433	$	2,253,512	$	2,793,713	$	3,259,499	$	10,964,157

The following table presents certain financial information by geographic area (in thousands):

	For the Years Ended
	September 29, 2017		September 30, 2016		October 2, 2015
Revenues:
United States	$	5,822,843	$	6,247,448	$	7,154,433
Europe		2,262,092		2,346,224		2,074,837
Canada		590,604		927,942		1,065,651
Asia		253,167		299,952		304,393
India		165,295		187,929		163,871
Australia and New Zealand		628,945		436,670		611,271
South America and Mexico		73,456		125,610		143,014
Middle East and Africa		226,386		392,382		597,362
Total	$	10,022,788	$	10,964,157	$	12,114,832
Property, equipment and improvements, net:
United States	$	220,416	$	195,392	$	208,155
Europe		46,108		37,163		55,713
Canada		18,435		21,464		36,647
Asia		2,793		3,069		3,859
India		19,191		13,350		16,264
Australia and New Zealand		18,692		18,888		24,460
South America and Mexico		4,619		5,621		9,127
Middle East and Africa		19,657		24,726		27,013
Total	$	349,911	$	319,673	$	381,238

Revenues were earned from unaffiliated clients located primarily within the various and respective geographic areas shown.

The following table presents the revenues earned directly or indirectly from the U.S. federal government and its agencies, expressed as a percentage of total revenues:

For the Years Ended
September 29, 2017		September 30, 2016		October 2, 2015
	19.2%		21.4%		21.7%