XML 90 R31.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Discontinued Operations - Sale of Energy, Chemicals and Resources ("ECR") Business (Tables)
 3 Months Ended
Dec. 27, 2019
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
The following table represents earnings (loss) from discontinued operations, net of tax (in thousands):

Three Months Ended
December 27, 2019December 28, 2018
Revenues$7,099  $1,164,707  
Direct cost of contracts(4,692) (995,606) 
Gross profit2,407  169,101  
Selling, general and administrative expenses47,159  (91,010) 
Operating Profit (Loss)49,566  78,091  
Gain on sale of ECR business61,943  —  
Other (expense) income, net1  2,120  
Earnings Before Taxes from Discontinued Operations111,510  80,211  
Income Tax Expense(33,923) (20,053) 
Net Earnings of the Group from Discontinued Operations$77,587  $60,158  
Selling, general and administrative expenses includes an offsetting insurance recovery of $50.0 million for the three months ended December 27, 2019 recorded in connection with the Nui Phao ("NPMC") legal matter described in Note 19- Commitments and Contingencies. The gain on sale of the ECR business of $61.9 million for the three months ended December 27, 2019 primarily includes additional income for the release of a deferred gain upon achievement of the IT Migration Date described above in connection with the delivery to Worley of certain IT application and hardware assets related to the ECR business, as well as adjustments to the purchase price for working capital and certain other items in connection with the ECR sale.
The following tables represent the assets and liabilities held for sale (in thousands):
December 27, 2019September 27, 2019
Receivables and contract assets$3,976  $871  
Prepaid expenses and other46  81  
Current assets held for sale$4,022  $952  

Property, Equipment and Improvements, net$1,200  $1,643  
Goodwill24,896  24,896  
Miscellaneous434  439  
Noncurrent assets held for sale$26,530  $26,978  

Accounts payable and accrued liabilities$778  $2,495  
Contract liabilities19  78  
Current liabilities held for sale$797  $2,573  

Other Deferred Liabilities$52  $97  
Noncurrent liabilities held for sale$52  $97  

The significant components included in our Consolidated Statements of Cash Flows for the discontinued operations are as follows (in thousands):
For the Three Months Ended
December 27, 2019December 28, 2018
Depreciation and amortization:
Property, equipment and improvements$—  $2,110  
Intangible assets$—  $614  
Additions to property and equipment$—  $(1,254) 
Stock based compensation$—  $3,615