XML 24 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Goodwill and Intangibles
 6 Months Ended
Mar. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangibles
Goodwill and Intangibles
As a result of the segment realignment this quarter (See Note 7, Segment Information), the historical carrying value of goodwill has been allocated to the three remaining reportable segments to present balances on a comparable basis. The carrying value of goodwill appearing in the accompanying Consolidated Balance Sheets at March 30, 2018 and September 29, 2017 was as follows (in millions):
 
Aerospace, Technology, Environmental and Nuclear
 
Buildings, Infrastructure and Advanced
Facilities
 
Energy,
Chemicals and Resources
 
Total
Balance September 29, 2017
$
1,038.2

 
$
1,048.8

 
$
922.8

 
$
3,009.8

Acquired
945.2

 
1,417.9

 
335.7

 
2,698.8

Post-Acquisition Adjustments
106.7

 
40.2

 
32.1

 
179.0

Foreign Exchange Impact
10.0

 
10.2

 
9.0

 
29.2

Balance March 30, 2018
$
2,100.1

 
$
2,517.1

 
$
1,299.6

 
$
5,916.8


During the preparation of our Quarterly Report on Form 10-Q for the first fiscal quarter of 2017, the Company determined that its prior financial statements contained immaterial misstatements related to incorrect translation of the Company’s non-U.S. goodwill balances from local currency to the U.S. Dollar reporting currency. It was determined that the Company had incorrectly used historical translation rates for the U.S. Dollar in place at the time of the Company’s recording of its foreign goodwill balances rather than using current translation rates at each balance sheet date in accordance with U.S. GAAP.  The error dated back to the time of our initial reporting of non-US goodwill balances in the late 1990s and affected our historical quarterly and annual reporting periods through the first fiscal quarter of 2017. Goodwill and accumulated other comprehensive income in the Company’s September 30, 2016 consolidated balance sheet (which have not been adjusted) were each overstated by $209.9 million and was corrected in the first fiscal quarter of 2017 foreign currency translation adjustment.  Consequently, the correction was a direct component of the overall translation adjustment amount of $287.5 million that was reported for the three months ended December 30, 2016. These adjustments had no impact on the Company’s Consolidated Statements of Earnings or Cash Flows.
The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at March 30, 2018 and September 29, 2017 (in thousands):
 
 
Customer Relationships, Contracts, and Backlog
 
Developed Technology
 
Trade Names
 
Patents
 
Lease
Intangible
Assets
 
Other
 
Total
Balances September 29, 2017
 
$
301,468

 
$
14,462

 
$
6,699

 
$
10,180

 
$
—

 
$
111

 
$
332,920

Acquisitions
 
557,000

 
237

 
40,000

 
—

 
5,951

 
—

 
603,188

Post-Acquisition Adjustments
 
(106,800
)
 
(1,921
)
 
(41,700
)
 
—

 
(1,536
)
 
—

 
(151,957
)
Amortization
 
(33,310
)
 
(767
)
 
(1,530
)
 
(208
)
 
(208
)
 
(25
)
 
(36,048
)
Foreign currency translation
 
(1,805
)
 
—

 
(7
)
 
(344
)
 
—

 
—

 
(2,156
)
Balances March 30, 2018
 
$
716,553

 
$
12,011

 
$
3,462

 
$
9,628

 
$
4,207

 
$
86

 
$
745,947


In addition, we acquired $9.6 million in lease intangible liabilities in connection with the CH2M acquisition, of which $9.3 million remain unamortized at March 30, 2018.
The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 2018 and for the succeeding years. The amounts below include preliminary amortization estimates for the CH2M opening balance sheet fair values that are still preliminary and are subject to change.
Fiscal Year
 
(in millions)
2018 (six months remaining)
 
$
44.6

2019
 
86.7

2020
 
84.6

2021
 
81.0

2022
 
79.8

Thereafter
 
359.9

Total
 
$
736.6