Restructuring and Other Charges

CH2M Restructuring Plan

During the fourth fiscal quarter of 2017, the Company implemented certain restructuring and pre-integration plans associated with the then pending acquisition of CH2M, which closed on December 15, 2017. The restructuring activities and related costs under these plans were comprised mainly of severance and lease abandonment programs, while the pre-integration activities and costs were mainly related to the engagement of consulting services and internal personnel and other related costs dedicated to the Company’s acquisition integration management efforts.

Following the closing of the CH2M acquisition, these activities have continued into fiscal 2019 and include restructuring activities amounting to approximately $8.2 million and $5.5 million in pre-tax charges during the three months ended December 28, 2018 and December 29, 2017, respectively. The integration activities for the same periods amounted to approximately $26.0 million and $13.8 million in pre-tax charges for the three months ended December 28, 2018 and December 29, 2017, 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.

2015 Restructuring Plan

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 then four global LOBs was implemented. Actions related to the 2015 Restructuring included involuntary terminations, the abandonment of certain leased offices, combining operational organizations, the colocation of employees into other existing offices, and the realignment of the Company's Europe, U.K. and Middle East regional operations. 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) by LOB in connection with the CH2M acquisition for the three months ended December 28, 2018 and the CH2M acquisition and the 2015 Restructuring for the three months ended December 29, 2017 (in thousands):



	Three Months Ended
	December 28, 2018			December 29, 2017
Aerospace, Technology and Nuclear	$	449		$	312
Buildings, Infrastructure and Advanced Facilities	11,224			2,891
Corporate	33,386			12,525
Continuing Operations	45,059			15,728
Energy, Chemicals and Resources (included in Discontinued Operations)	(5,658		)	3,621
Total	$	39,401		$	19,349

The activity in the Company’s accrual for the Restructuring and other charges for the three-month period ended December 28, 2018 is as follows (in thousands):



Balance at September 28, 2018	$	175,476
Net Charges	39,401
Payments and Usage	(59,813		)
Balance at December 28, 2018	$	155,064

The balance at December 28, 2018 includes $33.2 million of ECR divestiture liabilities held for sale.

The following table summarizes the Restructuring and other charges by major type of costs in connection with the CH2M acquisition for the three months ended December 28, 2018, and the CH2M acquisition and the 2015 Restructuring for the three months ended December 29, 2017 (in thousands):



	Three Months Ended
	December 28, 2018		December 29, 2017
Lease Abandonments	$	2,484	$	3,363
Involuntary Terminations	2,909		2,184
Outside Services	18,198		8,590
Other	15,810		5,212
Total	$	39,401	$	19,349

Cumulative amounts incurred to date under our various restructuring and other programs since fiscal 2015 by each major type of cost as of December 28, 2018 are as follows (in thousands):



Lease Abandonments	$	295,257
Involuntary Terminations	224,551
Outside Services	78,874
Other	112,063
Total	$	710,745