Restructuring and Other Charges

During the fourth fiscal quarter of 2017, the Company implemented certain restructuring activities (primarily severance and lease abandonment costs associated with co-locating Jacobs and CH2M offices) and integration activities (primarily professional fees for outside services and personnel related costs) associated with the Company’s acquisition of CH2M. Following the closing of the CH2M acquisition, these activities have continued into the first half of 2018 and include restructuring activities amounting to approximately $55.2 million and $60.7 million in pre-tax charges during the three and six month periods ended March 30, 2018, respectively. The integration activities for the same periods amounted to approximately $14.2 million and $28.0 million in pre-tax charges for the three and six months ended March 30, 2018, respectively. These activities are expected to continue through fiscal 2019. These activities are not expected to involve the exit of any service types or client end-markets.

During the second fiscal quarter of 2017, the Company entered into strategic business restructuring activities associated with realignment of its Europe, United Kingdom ("U.K.") and Middle East regional operations in our BIAF segment. Pre-tax net charges of $22.6 million were recorded associated mainly with net realizable value write-offs on contract accounts receivable of $16.5 million, with additional charges recorded for statutory redundancy and severance costs of $1.4 million and other liabilities of $4.7 million which are both expected to be paid or settled within the next 12 months. Additional charges of $1.2 million were recorded under this business realignment during third quarter fiscal 2017 associated mainly with contract accounts receivable charges.

During the second fiscal quarter of 2015, the Company began implementing a series of initiatives intended to improve operational efficiency, reduce costs, and better position itself to drive growth of the business in the future. We refer to these initiatives, in the aggregate, as the “2015 Restructuring”. These activities evolved and developed over time as management identified and evaluated opportunities for changes in the Company’s operations (and related areas of potential cost savings), as economic conditions changed and as the realignment of the Company’s operations into its four global LOBs was implemented. Actions related to the 2015 Restructuring included involuntary terminations, the abandonment of certain leased offices, combining operational organizations, and the colocation of employees into other existing offices. These activities did not involve the exit of any service types or client end-markets. The 2015 Restructuring was completed in fiscal 2017, although related cash payments continue to be made under the related accruals recorded in connection with these activities.

Collectively, the above mentioned restructuring activities are referred to as “Restructuring and other charges.”

The following table summarizes the impacts of the Restructuring and other charges (or recoveries, which primarily relate to the reversals of lease abandonment accruals related to previously vacated facilities which are now planned to be utilized) on the Company’s reportable segment income by line of business in connection with the CH2M acquisition for the three and six months ended March 30, 2018 and the 2015 Restructuring and realignment of the Company's Europe, U.K. and Middle East regional operations for the three and six months ended March 31, 2017 (in thousands):



	Three Months Ended					Six Months Ended
	March 30, 2018			March 31, 2017		March 30, 2018			March 31, 2017
Aerospace, Technology, Environmental and Nuclear	$	1,409		$	1,274	$	1,722		$	1,646
Buildings, Infrastructure and Advanced Facilities	18,287			9,996		21,178			18,002
Energy, Chemicals and Resources	(7,588		)	20,634		(3,967		)	36,442
Corporate	57,243			20,362		69,768			27,917
Total	$	69,351		$	52,266	$	88,701		$	84,007

The activity in the Company’s accrual for the Restructuring and other charges for the six-month period ended March 30, 2018 is as follows (in thousands):



Balance at Balance at September 29, 2017	$	142,767
CH2M Acquisition Assumed Liabilities	31,576
CH2M Charges	88,701
Payments	(77,093		)
Balance at Balance at March 30, 2018	$	185,951

The following table summarizes the Restructuring and other charges by major type of costs in connection with the CH2M acquisition for the three and six month periods ended March 30, 2018, and the 2015 Restructuring and realignment of the Company's Europe, U.K. and Middle East regional operations for the three and six months ended March 31, 2017 (in thousands):



	Three Months Ended				Six Months Ended
	March 30, 2018		March 31, 2017		March 30, 2018		March 31, 2017
Lease Abandonments	$	37,073	$	27,992	$	40,436	$	44,601
Involuntary Terminations	16,936		18,554		19,120		29,886
Outside Services	8,170		2,261		16,759		3,552
Other	7,172		3,459		12,386		5,968
Total	$	69,351	$	52,266	$	88,701	$	84,007

Cumulative amounts incurred to date for Restructuring and other charges by each major type of cost as of March 30, 2018 are as follows (in thousands):



Lease Abandonments	$	279,295
Involuntary Terminations	203,699
Outside Services	41,127
Other	21,317
Total	$	545,438