XML 21 R9.htm IDEA: XBRL DOCUMENT v3.6.0.2
Segment Information
 3 Months Ended
Dec. 30, 2016
Segment Reporting [Abstract]  
Segment Information

Segment Information

During the second quarter of fiscal 2016, we reorganized our operating and reporting structure around four lines of business (“LOB”).  This reorganization is intended to better serve our global clients, leverage our workforce, help streamline operations, and provide enhanced growth opportunities.  The four global LOBs are: Petroleum & Chemicals, Buildings & Infrastructure, Aerospace & Technology, and Industrial. Previously, the Company operated its business as a single segment.

 

Under the new organization, each LOB has a president that reports directly to the Company's Chairman and CEO (who is also the Company’s Chief Operating Decision Maker, or “CODM”).  As part of the reorganization, the sales function, which had been managed centrally for many years, is now managed on a 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) are 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.  In addition, 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 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 selling, general and administrative (“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. Prior period information has been restated to reflect the current period presentation (in thousands).

 

 

For the Three Months Ended

 

 

December 30, 2016

 

 

January 1,

2016

 

Revenues from External Customers:

 

 

 

 

 

 

 

Aerospace & Technology

$

577,436

 

 

$

670,191

 

Buildings & Infrastructure

 

580,617

 

 

 

563,330

 

Industrial

 

751,738

 

 

 

672,100

 

Petroleum & Chemicals

 

641,813

 

 

 

942,313

 

Total

$

2,551,604

 

 

$

2,847,934

 

 

 

For the Three Months Ended

 

 

December 30, 2016

 

 

January 1,

2016

 

Operating Profit:

 

 

 

 

 

 

 

Aerospace & Technology

$

51,087

 

 

$

47,999

 

Buildings & Infrastructure

 

38,797

 

 

 

40,452

 

Industrial

 

25,129

 

 

 

27,355

 

Petroleum & Chemicals

 

23,652

 

 

 

31,603

 

Total Segment Operating Profit

 

138,665

 

 

 

147,409

 

Other Corporate Expenses

 

(18,296

)

 

 

(19,576

)

Restructuring Charges in SG&A

 

(31,741

)

 

 

(68,383

)

Total Operating Profit

 

88,628

 

 

 

59,450

 

Total Other Expense

 

(2,748

)

 

 

(1,663

)

Earnings Before Taxes

$

85,880

 

 

$

57,787

 

 

Included in “Other Corporate Expenses” 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 MIP 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 Expenses” 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.