Restructuring and Other Charges

3 Months Ended

Jan. 01, 2021

Restructuring and Related Activities [Abstract]

During fiscal 2021, the Company implemented certain restructuring and integration initiatives relating to the Buffalo Group acquisition. The activities of these initiatives are expected to be substantially completed before the end of fiscal 2021.

Additionally, the Company recorded an impairment on its investment in AWE during the first quarter of fiscal 2021. See related discussion in Note 11- Joint ventures, VIEs and other investments.

During fiscal 2020, the Company implemented certain restructuring and separation initiatives, including the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate and other staffing programs. The activities of these initiatives are expected to continue into fiscal 2023.

During fiscal 2019 and continuing into fiscal 2020, the Company implemented certain restructuring, separation and integration initiatives associated with the ECR sale, the acquisition of KeyW Holding Corporation ("KeyW"), and other related cost reduction initiatives. Additionally, in fiscal 2020, the Company implemented certain restructuring and integration initiatives associated with the acquisition of John Wood Group's nuclear business. The restructuring activities and related costs were comprised mainly of separation and lease abandonment and sublease programs, while the separation and 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 ECR-business separation and integration of KeyW and the John Wood Group’s nuclear business. The activities of these initiatives are expected to be substantially completed before the end of fiscal 2021.

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 integration activities and costs were mainly related to the engagement of professional services and internal personnel and other related costs dedicated to the Company’s integration management efforts. Following the closing of the CH2M acquisition, these activities have continued through fiscal 2020 and are expected to be substantially completed before the end of fiscal 2022.

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 by LOB in connection with the CH2M, KeyW, John Wood Group's nuclear business and Buffalo Group acquisitions, the ECR sale and the Company's fourth quarter fiscal 2020 transformation initiatives relating to real estate and other staffing programs and impairment of the AWE Management Ltd. investment for the three months ended January 1, 2021 and the CH2M and KeyW acquisitions and the ECR sale for the December 27, 2019 (in thousands):


	Three Months Ended
	January 1, 2021		December 27, 2019
Critical Mission Solutions	$	3,209	$	4,291
People & Places Solutions	5,167		10,153
Corporate	40,017		37,597
Total (1)	$	48,393	$	52,041

(1)For the three months ended January 1, 2021 and December 27, 2019, amounts include $20.5 million and $49.7 million, respectively, in items impacting operating profit, along with items recorded in other income (expense), net, which include $(27.9) million related to the impairment of our AWE Management Ltd. investment which is reflected in other income (expense) for the three months ended January 1, 2021 and the loss on settlement of the CH2M portion of the U.S. pension plan of $(2.4) million for the three months ended December 27, 2019. See Note 19- Segment Information.

The activity in the Company’s accrual for the Restructuring and other charges, including the program activities described above, for the three months ended January 1, 2021 is as follows (in thousands):


Balance at October 2, 2020	$	52,854
Net Charges	48,393
Payments and Usage	(70,973)
Balance at January 1, 2021	$	30,274

The following table summarizes the Restructuring and other charges by major type of costs for the three months ended January 1, 2021 and December 27, 2019 (in thousands):


	Three Months Ended
	January 1, 2021		December 27, 2019
Lease Abandonments and Impairments	$	148	$	—
Voluntary and Involuntary Terminations	9,503		13,153
Outside Services	7,399		31,466
Other (1)	31,343		7,422
Total	$	48,393	$	52,041

(1)Includes $27.9 million related to the impairment of our AWE Management Ltd. investment for the three months ended January 1, 2021.

Cumulative amounts since 2017 incurred to date under our various restructuring and other activities described above by each major type of cost as of January 1, 2021 are as follows (in thousands):


Lease Abandonments and Impairments	$	313,665
Voluntary and Involuntary Terminations	138,472
Outside Services	266,523
Other	131,657
Total	$	850,317