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Pension and Other Postretirement Benefit Plans
 12 Months Ended
Oct. 02, 2020
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefit Plans Pension and Other Postretirement Benefit Plans
Company-Only Sponsored Plans
We sponsor various defined benefit pension and other post retirement plans covering employees of certain U.S. and international subsidiaries. The pension plans provide pension benefits that are based on the employee’s compensation and years of service. Our funding policy varies by country and plan according to applicable local funding requirements and plan-specific funding agreements.
The accounting for pension and other post-retirement benefit plans requires the use of assumptions and estimates in order to calculate periodic benefit cost and the value of the plans’ assets and benefit obligations. These assumptions include discount rates, investment returns, and projected salary increases, among others. The discount rates used in valuing the plans' benefit obligations were determined with reference to high quality corporate and government bonds that are appropriately matched to the duration of each plan's obligations. The expected long-term rate of return on plan assets is generally based on using country-specific simulation models which select a single outcome for expected return based on the target asset allocation. The expected long-term rates of return used in the valuation are the annual average returns generated by these assumptions over a 20-year period for each asset class based on the expected long-term rate of return of the underlying assets.
 As a result of the ECR sale, ECR-related pension assets and liabilities that have been sold are reported as discontinued operations in accordance with ASC 210-05, Discontinued Operations. Activity for the year ended September 27, 2019 is shown in the appropriate rows and the balances as of the sale date are shown in the Disposition of ECR Plans rows below.
The following table sets forth the changes in the plans’ combined net benefit obligation (segregated between plans existing within and outside the U.S.) for the years ended October 2, 2020 and September 27, 2019 (in thousands):
 U.S. PlansNon-U.S. Plans
 October 2, 2020September 27, 2019October 2, 2020September 27, 2019
Net benefit obligation at the beginning of the year$448,540 $448,402 $2,258,129 $2,149,246 
Service cost409 2,784 5,710 7,171 
Interest cost12,673 16,697 39,469 52,627 
Participants’ contributions— 243 167 367 
Actuarial (gains)/losses15,584 52,720 35,626 314,889 
Benefits paid(22,836)(30,648)(64,395)(72,453)
Curtailments/settlements/plan amendments(16,450)(39,388)(4,782)30,124 
Disposition of ECR Plans— — — (99,504)
Effect of exchange rate changes and other, net— (2,270)118,153 (124,338)
Net benefit obligation at the end of the year$437,920 $448,540 $2,388,077 $2,258,129 
The following table sets forth the changes in the combined Fair Value of the plans’ assets (segregated between plans existing within and outside the U.S.) for the years ended October 2, 2020 and September 27, 2019 (in thousands):
 U.S. PlansNon-U.S. Plans
 October 2, 2020September 27, 2019October 2, 2020September 27, 2019
Fair value of plan assets at the beginning of the year$390,210 $390,829 $1,916,637 $1,867,481 
Actual return on plan assets33,345 31,140 61,221 280,785 
Employer contributions88 10,668 33,192 32,063 
Participants’ contributions— 243 167 367 
Gross benefits paid(22,836)(30,648)(64,395)(72,453)
Curtailments/settlements/plan amendments(18,557)(9,751)(4,782)(5,814)
Disposition of ECR Plans— — — (76,111)
Effect of exchange rate changes and other, net— (2,271)101,316 (109,681)
Fair value of plan assets at the end of the year$382,250 $390,210 $2,043,356 $1,916,637 
During fiscal 2020, the Company incurred combined curtailment and settlement losses on our defined benefit plans of approximately $4.6 million primarily related to the Ireland and U.S. plans. During fiscal 2019, the Company incurred combined curtailment and settlement gains on its defined benefit plans of approximately $33.1 million primarily related to the CH2M retiree medical (further discussed below) and Ireland plans.
The following table reconciles the combined funded statuses of the plans recognized in the accompanying Consolidated Balance Sheets at October 2, 2020 and September 27, 2019 (segregated between plans existing within and outside the U.S.) (in thousands):
 U.S. PlansNon-U.S. Plans
 October 2, 2020September 27, 2019October 2, 2020September 27, 2019
Net benefit obligation at the end of the year$437,920 $448,540 $2,388,077 $2,258,129 
Fair value of plan assets at the end of the year382,250 390,210 2,043,356 1,916,637 
Underfunded amount recognized at the end of the year$55,670 $58,330 $344,721 $341,492 
The following table presents the accumulated benefit obligation at October 2, 2020 and September 27, 2019 (segregated between plans existing within and outside the U.S.) (in thousands):
 U.S. PlansNon-U.S. Plans
 October 2, 2020September 27, 2019October 2, 2020September 27, 2019
Accumulated benefit obligation at the end of the year$436,770 $447,609 $2,376,059 $2,244,710 
The following table presents the amounts recognized in the accompanying Consolidated Balance Sheets at October 2, 2020 and September 27, 2019 (segregated between plans existing within and outside the U.S.) (in thousands): 
 U.S. PlansNon-U.S. Plans
 October 2, 2020September 27, 2019October 2, 2020September 27, 2019
Prepaid benefit cost included in noncurrent assets$— $— $1,037 $2,939 
Accrued benefit cost included in current liabilities85 85 4,375 4,177 
Accrued benefit cost included in noncurrent liabilities57,919 58,245 339,049 340,254 
Net amount recognized at the end of the year$58,004 $58,330 $342,387 $341,492 
The following table presents the significant actuarial assumptions used in determining the funded statuses and the following year's benefit cost of the Company’s U.S. plans for the years ended October 2, 2020, September 27, 2019 and September 28, 2018:
 For the Years Ended
 October 2, 2020September 27, 2019September 28, 2018
Discount rates
2.0% to 2.7%
2.8% to 3.1%
3.9% to 4.2%
Rates of compensation increases3.5%3.5%3.5%
Expected long-term rates of return on assets
4.6% to 4.7%
5.1%
5.8% to 5.9%
The following table presents the significant actuarial assumptions used in determining the funded statuses and the following year's benefit cost of the Company’s non-U.S. plans for the years ended October 2, 2020, September 27, 2019 and September 28, 2018:
For the Years Ended
 October 2, 2020September 27, 2019September 28, 2018
Discount rates
0.4% to 6.6%
 
0.2% to 7.1%
 
1.3% to 8.1%
Rates of compensation increases
2.7% to 7.5%
 
3.7% to 7.5%
 
3.8% to 7.5%
Expected long-term rates of return on assets
1.8% to 7.0%
 
2.3% to 7.5%
 
3.8% to 7.5%
The following table presents certain amounts relating to our U.S. plans recognized in accumulated other comprehensive (gain) loss at October 2, 2020, September 27, 2019 and September 28, 2018 (in thousands):
 October 2, 2020September 27, 2019September 28, 2018
Arising during the period:   
Net actuarial (gain) loss$(900)$36,108 $(7,514)
Prior service cost (benefit)1,589— —
Total 68936,108(7,514)
Reclassification adjustments:   
Net actuarial losses(2,653)(2,282)(2,913)
Prior service cost (benefit)(244)— — 
Total (2,897)(2,282)(2,913)
Total$(2,208)$33,826 $(10,427)
The following table presents certain amounts relating to our non-U.S. plans recognized in accumulated other comprehensive (gain) loss at October 2, 2020, September 27, 2019 and September 28, 2018 (in thousands):
 October 2, 2020September 27, 2019September 28, 2018
Arising during the period:   
Net actuarial (gain) loss$71,676 $83,368 $59,827 
Net (gain) loss on Sale of ECR— (12,520)— 
Prior service cost (benefit)— 29,829 215 
Total71,676 100,677 60,042 
Reclassification adjustments:   
Net actuarial losses(6,322)(6,546)(5,507)
Prior service cost(1,169)(1,075)181 
Total(7,491)(7,621)(5,326)
Total$64,185 $93,056 $54,716 
The following table presents certain amounts relating to our plans recorded in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at October 2, 2020 and September 27, 2019 (segregated between U.S. and non-U.S. plans) (in thousands):
 U.S. PlansNon-U.S. Plans
 October 2, 2020September 27, 2019October 2, 2020September 27, 2019
Net actuarial loss$67,530 $71,083 $401,930 $365,661 
Prior service cost1,345 — 27,921 28,346 
Total$68,875 $71,083 $429,851 $394,007 
The following table presents the amount of accumulated comprehensive income that will be amortized against earnings as part of our net periodic benefit cost in fiscal 2021 based on 2020 exchange rates (segregated between U.S. and non-U.S. plans) (in thousands):
 U.S. PlansNon-U.S. Plans
Unrecognized net actuarial loss$4,249 $10,016 
Unrecognized prior service cost431 1,431 
Accumulated comprehensive loss to be recorded against earnings$4,680 $11,447 
We consider various factors in developing the estimates for the expected, long-term rates of return on plan assets. These factors include the projected, long-term rates of returns on the various types of assets in which the plans invest, as well as historical returns. In general, investment allocations are determined by each plan’s trustees and/or investment committees. The objectives of the plans’ investment policies are to (i) maximize returns while preserving capital; (ii) provide returns sufficient to meet the current and long-term obligations of the plan as the obligations become due; and (iii) maintain a diversified portfolio of assets so as to reduce the risk associated with having a disproportionate amount of the plans’ total assets invested in any one type of asset, issuer or geography. None of our pension plans hold Jacobs common stock directly (although some plans may hold shares indirectly through investments in mutual funds). The plans’ weighted average asset allocations at October 2, 2020 and September 27, 2019 (the measurement dates used in valuing the plans’ assets and liabilities) were as follows:
 
 U.S. PlansNon-U.S. Plans
 October 2, 2020September 27, 2019October 2, 2020September 27, 2019
Equity securities3 %3 %21 %20 %
Debt securities58 %58 %56 %52 %
Real estate investments— %— %7 %7 %
Other39 %39 %17 %21 %
The following table presents the Fair Value of the Company’s Domestic U.S. plan assets at October 2, 2020, segregated by level of Fair Value measurement inputs within the Fair Value hierarchy promulgated by U.S. GAAP (in thousands):
 October 2, 2020
 Fair Value, Determined Using Fair Value Measurement Inputs
 Level 1Level 2Level 3Investments measured at Net Asset ValueTotal
Domestic equities$12,376 $— $— $— $12,376 
Domestic bonds68,324 131,534 — — 199,858 
Overseas bonds— 19,223 — — 19,223 
Cash and equivalents18,226 — — — 18,226 
Mutual funds132,567 — — — 132,567 
Total$231,493 $150,757 $— $— $382,250 
The following table presents the Fair Value of the Company’s non-U.S. plan assets at October 2, 2020, segregated by level of Fair Value measurement inputs within the Fair Value hierarchy promulgated by U.S. GAAP (in thousands):
 October 2, 2020
 Fair Value, Determined Using Fair Value Measurement Inputs
 Level 1Level 2Level 3Investments measured at Net Asset ValueTotal
Domestic equities$— $103,036 $— $5,745 $108,781 
Overseas equities— 229,576 — 87,725 317,301 
Domestic bonds— 34,469 — 1,175 35,644 
Overseas bonds— 1,049,119 — 58,493 1,107,612 
Cash and equivalents24,568 — — — 24,568 
Real estate— 10,383 105,422 — 115,805 
Insurance contracts— 4,402 67,709 17,909 90,020 
Hedge funds— — 171,730 7,153 178,883 
Mutual funds— 64,742 — — 64,742 
Total$24,568 $1,495,727 $344,861 $178,200 $2,043,356 

The following table presents the Fair Value of the Company’s U.S. plan assets at September 27, 2019, segregated by level of Fair Value measurement inputs within the Fair Value hierarchy promulgated by U.S. GAAP (in thousands):
 September 27, 2019
 Fair Value, Determined Using Fair Value Measurement Inputs
 Level 1Level 2Level 3Investments measured at Net Asset ValueTotal
Domestic equities$10,890 $— $— $— $10,890 
Domestic bonds65,490 134,594 — — 200,084 
Overseas bonds— 20,020 — — 20,020 
Cash and equivalents28,972 — — — 28,972 
Mutual funds130,244 — — — 130,244 
Total$235,596 $154,614 $— $— $390,210 
The following table presents the Fair Value of the Company’s non-U.S. plan assets at September 27, 2019, segregated by level of Fair Value measurement inputs within the Fair Value hierarchy promulgated by U.S. GAAP (in thousands):
 September 27, 2019
 Fair Value, Determined Using Fair Value Measurement Inputs
 Level 1Level 2Level 3Investments measured at Net Asset ValueTotal
Domestic equities$— $17,255 $— $19,413 $36,668 
Overseas equities— 182,600 — 50,127 232,727 
Domestic bonds— 306,225 — 34,408 340,633 
Overseas bonds— 728,616 — 39,292 767,908 
Cash and equivalents37,811 (16)— — 37,795 
Real estate— 24,735 97,539 15,198 137,472 
Insurance contracts— 4,478 72,788 — 77,266 
Derivatives— — — — — 
Hedge funds— — 130,200 7,156 137,356 
Mutual funds— 148,812 — — 148,812 
Total$37,811 $1,412,705 $300,527 $165,594 $1,916,637 
The following table summarizes the changes in the Fair Value of the Company’s non-U.S. Pension Plans’ Level 3 assets for the years ended September 27, 2019 and October 2, 2020 (in thousands):
 Real EstateInsurance ContractsHedge Funds
Balance at Balance at September 28, 2018$99,587 $95,782 $135,786 
Purchases, sales, and settlements(17,902)(5,126)(26,591)
Realized and unrealized gains21,838 9,134 29,161 
Disposition of ECR Assets— (22,885)— 
Effect of exchange rate changes(5,984)(4,117)(8,156)
Balance at September 27, 2019$97,539 $72,788 $130,200 
Purchases, sales, and settlements(475)(7,375)29,999 
Realized and unrealized gains (losses)3,337 (1,399)5,435 
Effect of exchange rate changes5,021 3,695 6,096 
Balance at October 2, 2020$105,422 $67,709 $171,730 
The following table presents the amount of cash contributions we anticipate making into the plans during fiscal 2021 (in thousands):  
 U.S. PlansNon-U.S. Plans
Anticipated cash contributions$— $31,258 
The following table presents the total benefit payments expected to be paid to plan participants during each of the next five fiscal years, and in total for the five years thereafter (in thousands):
 U.S. PlansNon-U.S. Pans
2021$34,757 $70,264 
202232,690 69,594 
202332,022 71,386 
202430,710 72,131 
202529,312 73,217 
For the periods 2026 through 2030129,516 406,156 
The following table presents the components of net periodic benefit cost for the Company’s U.S. plans recognized in the accompanying Consolidated Statements of Earnings for the years ended October 2, 2020, September 27, 2019 and September 28, 2018 (in thousands):
 October 2, 2020September 27, 2019September 28, 2018
Service cost$409 $2,784 $4,765 
Interest cost12,673 16,697 13,778 
Expected return on plan assets(17,670)(21,508)(19,663)
Actuarial loss3,518 3,026 3,845 
Prior service cost323 — — 
Net pension cost, before special items$(747)$999 $2,725 
Curtailment expense/Settlement (gain) loss3,436 (35,020)4,146 
Total net periodic pension cost recognized$2,689 $(34,021)$6,871 
The following table presents the components of net periodic benefit cost for the Company’s Non-U.S. plans recognized in the accompanying Consolidated Statements of Earnings for the years ended October 2, 2020, September 27, 2019 and September 28, 2018 (in thousands):
 October 2, 2020September 27, 2019September 28, 2018
Service cost$5,710 $7,171 $8,269 
Interest cost39,469 52,627 49,324 
Expected return on plan assets(93,407)(82,274)(83,328)
Actuarial loss7,578 7,854 6,655 
Prior service cost1,405 1,263 (257)
Net pension cost, before special items$(39,245)$(13,359)$(19,337)
Curtailment expense/Settlement (gain) loss1,341 1,933 1,268 
Total net periodic pension (income) cost recognized$(37,904)$(11,426)$(18,069)
Total net periodic pension (income) cost recognized from Discontinued Operations$— $2,282 $3,606 
Total net periodic pension (income) cost recognized from Continuing Operations$(37,904)$(13,708)$(21,675)

As a result of the adoption of ASU 2017-07, Compensation- Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost in the first quarter of fiscal 2019, the service cost component of net periodic pension expense has been presented in the same line item as other compensation costs (direct cost of contracts and selling, general and administrative expenses) and the other components of net periodic pension expense have been reclassified from selling, general and administrative expense and direct cost of contracts and instead presented in miscellaneous income (expense), net on the Consolidated Statements of Earnings for the year ended September 28, 2018 in the amount of $24.2 million.
In the first quarter of fiscal 2019, the Company elected to discontinue the CH2M Hill Retiree Medical Plan and the OMI Retiree Medical Plan, effective December 31, 2018. Lump sum payments were made to participants in fiscal 2019, resulting in a plan settlement and related settlement gain of $35.0 million recognized in fiscal 2019.
On January 1, 2019, the CH2M Hill Pension Plan and the CH2M Hill IDC Pension Plan merged into the Company's Sverdrup Pension Plan. The newly combined plan is called the Jacobs Consolidated Pension Plan.
Due to a ruling by the High Court in the United Kingdom regarding equalization between men and women of a tranche of pension (the Guaranteed Minimum Pension) accrued between 1990 and 1997, Jacobs measured the estimated impact of this ruling in its consolidated financial statements, resulting in an increase of approximately $38.2 million in the ASC 715 balance sheet liability in fiscal 2019, with an offset to other comprehensive income, net of tax. Additionally, the Company recognized an additional $1.5 million in additional net periodic benefit cost during the year ended September 27, 2019 as a result of the ruling.
Multiemployer Plans
In the U.S. and various other countries, we contribute to trusteed pension plans covering hourly and certain salaried employees under industry-wide agreements. Contributions are based on the hours worked by employees covered under these agreements and are charged to direct costs of contracts on a current basis.
The majority of the contributions the Company makes to multiemployer pension plans are outside the U.S. With respect to these multiemployer plans, the Company's liability to fund these plans is generally limited to the contributions we are required to make under collective bargaining agreements.
Based on our review of our multiemployer pension plans under the guidance provided in ASU 2011-09— Compensation-Retirement Benefits-Multiemployer Plans, we have concluded that none of the multiemployer pension plans into which we contribute are individually significant to our Consolidated Financial Statements. Additionally, in fiscal year 2019, all Canadian and some US and European multiemployer plans were sold in connection with the ECR sale, which resulted in a year over year decrease in contributions made.
The following table presents the Company’s contributions to these multiemployer plans for the years ended October 2, 2020, September 27, 2019 and September 28, 2018 (in thousands):
 October 2, 2020September 27, 2019September 28, 2018
Canada$— $16,625 $36,354 
Europe1,922 9,413 10,677 
United States6,637 7,149 9,536 
Contributions to multiemployer pension plans$8,559 $33,187 $56,567