Restructuring and Other Charges

ECR Sale Restructuring

During fiscal 2019, the Company implemented certain restructuring and pre-separation initiatives associated with the sale of the ECR business, which closed April 26, 2019. The restructuring activities and related costs were comprised mainly of severance and lease abandonment programs, while the pre-separation activities and costs were mainly related to the engagement of consulting services and internal personnel and other related costs dedicated to the Company’s sales management efforts.

Leading up to the ECR sale, these activities include restructuring and other charges amounting to approximately $0.8 million and $(5.8) million, respectively, for the three and six months ended March 29, 2019. The $(5.8) million credit for the six month period ended March 29, 2019 includes the reversal of reserves for prior lease termination exit costs as we re-entered the previously impaired space. Combined with costs of $31.6 million and $37.0 million in pre-separation activities for the same periods, these restructuring and pre-separation activities approximated $32.4 million and $31.2 million, respectively, in combined pre-tax charges for the three and six months ended March 29, 2019. These activities are expected to continue into fiscal 2020.

CH2M Restructuring

During the fourth fiscal quarter of 2017, the Company implemented certain restructuring and pre-integration initiatives associated with the impending acquisition of CH2M, which closed on December 15, 2017. The restructuring activities and related costs 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 charges amounting to approximately $49.6 million and $64.3 million during the three and six month periods ended March 29, 2019, respectively, and $55.2 million and $60.7 million in pre-tax charges during the three and six month periods ended March 30, 2018, respectively. Combined with costs from integration activities of $(12.3) million and $13.5 million for the three and six month periods ended March 29, 2019, and $14.1 million and $28.0 million during the three and six month periods ended March 30, 2018, respectively, the total cost of these restructuring and integration activities approximated $37.3 million and $77.8 million, in pre-tax charges for three and six month periods ended March 29, 2019, respectively, and $69.3 million and $88.7 million, respectively, in pre-tax charges for the three and six months ended March 30, 2018. The $(12.3) million credit for the three month period ended March 29, 2019 includes the CH2M retiree medical plan settlement gains associated with the Company's continuing integration efforts for the CH2M acquisition. 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

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 and the ECR sale for the three and six months ended March 29, 2019 and the CH2M acquisition and the 2015 Restructuring for the three and six months ended March 30, 2018 (in thousands):



	Three Months Ended					Six Months Ended
	March 29, 2019		March 30, 2018			March 29, 2019			March 30, 2018
Aerospace, Technology and Nuclear	$	341	$	1,409		$	790		$	1,722
Buildings, Infrastructure and Advanced Facilities	47,626		18,287			58,025			21,178
Corporate⁽¹⁾	18,854		57,243			53,065			69,768
Continuing Operations	66,821		76,939			111,880			92,668
Energy, Chemicals and Resources (included in Discontinued Operations)	2,801		(7,588		)	(2,857		)	(3,967		)
Total	$	69,622	$	69,351		$	109,023		$	88,701

(1) Includes $34.6 million in pre-tax gains associated with the Company's CH2M retiree medical plan settlement during the six months ended March 29, 2019.

The activity in the Company’s accrual for the Restructuring and other charges for the six-month period ended March 29, 2019 is as follows (in thousands):



Balance at September 28, 2018	$	175,476
Net Charges⁽¹⁾	141,472
Payments and Usage	(125,019		)
Balance at March 29, 2019	$	191,929

(1) Includes $34.6 million in pre-tax gains associated with the Company's CH2M retiree medical plan settlement during the six months ended March 29, 2019.

The balance at March 29, 2019 includes $21.1 million of ECR divestiture liabilities reported as held for sale.

The following table summarizes the Restructuring and other charges by major type of costs in connection with the CH2M acquisition and the ECR sale for the three and six months ended March 29, 2019, and the CH2M acquisition for the three and six months ended March 30, 2018 (in thousands):



	Three Months Ended					Six Months Ended
	March 29, 2019			March 30, 2018		March 29, 2019			March 30, 2018
Lease Abandonments	$	40,875		$	37,073	$	43,359		$	40,436
Involuntary Terminations	8,050			16,936		10,959			19,120
Outside Services	37,709			8,170		56,134			16,759
Other⁽¹⁾	(17,012		)	7,172		(1,429		)	12,386
Total	$	69,622		$	69,351	$	109,023		$	88,701

(1) Includes $34.6 million in pre-tax gains associated with the Company's CH2M retiree medical plan settlement during the six months ended March 29, 2019.

Cumulative amounts incurred to date under our various restructuring and other programs since fiscal 2015 by each major type of cost as of March 29, 2019 are as follows (in thousands):



Lease Abandonments	$	336,132
Involuntary Terminations	232,601
Outside Services	116,811
Other⁽¹⁾	94,823
Total	$	780,367

(1) Includes $34.6 million in pre-tax gains associated with the Company's CH2M retiree medical plan settlement during the six months ended March 29, 2019.