XML 56 R26.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Restructuring and Other Charges | 12 Months Ended
--- | ---
Sep. 30, 2022
Restructuring and Related Activities [Abstract] |
Restructuring and Other Charges | Restructuring and Other Charges During fiscal 2022, the Company implemented certain restructuring and integration initiatives relating to the StreetLight and BlackLynx acquisitions, the activities of which are expected to be substantially completed before the end of fiscal 2023. Also, during fiscal 2022, the Company implemented further real estate rescaling efforts that were associated with its fiscal 2020 transformation program relating to real estate and other staffing initiatives. These initiatives are expected to continue into fiscal 2023. During fiscal 2021, the Company implemented certain restructuring and integration initiatives relating to the Buffalo Group acquisition and the PA Consulting investment. The activities of the Buffalo Group initiative are substantially completed and the activities of the PA Consulting investment are expected to end before the end of fiscal 2025. Additionally, the Company recorded impairment charges on its investment in AWE ML during fiscal 2021. See related discussion in Note 8- Joint ventures, VIEs and other investments. During fiscal 2019 and continuing into fiscal 2020, the Company implemented certain restructuring and separation initiatives associated with the ECR sale, the KeyW acquisition, and other related cost reduction initiatives. Additionally, in fiscal 2020, the Company implemented certain restructuring and separation 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 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. The activities of these initiatives have been substantially completed. As part of the Company's acquisition of CH2M Hill Companies, Ltd. ("CH2M") during fiscal 2018, the Company implemented certain restructuring plans that were comprised mainly of severance and lease abandonment programs as well as integration activities involving the engagement of professional services and internal personnel dedicated to the Company's integration management efforts. The activities of these initiatives have been substantially completed. 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 operating segment in connection with the CH2M, KeyW, John Wood Group nuclear business and Buffalo Group, BlackLynx and StreetLight acquisitions and the PA Consulting investment, the ECR sale, the Company's transformation initiatives relating to real estate and other staffing programs and the impairment and final exit activities of the AWE ML investment for the years ended September 30, 2022, October 1, 2021 and October 2, 2020 (in thousands):
| September 30, 2022 |  | October 1, 2021 |  | October 2, 2020
Critical Mission Solutions | $ | 5,626 |  |  | $ | 5,079 |  |  | $ | 24,083 |
People & Places Solutions | 64,204 |  |  | 7,077 |  |  | 170,631 |
PA Consulting | 4,253 |  |  | 15,566 |  |  | — |
Corporate | 86,980 |  |  | 71,868 |  |  | 129,469 |
Total | 161,063 |  |  | 99,590 |  |  | 324,183 |
Amounts included in: |  |  |  |  |
Operating profit (mainly Selling, General and Administrative costs (“SG&A") (1) | 173,555 |  |  | 61,042 |  |  | 322,082 |
Other (Income) Expense, net (2) | (12,492) |  |  | 38,548 |  |  | 2,101 |
| $ | 161,063 |  |  | $ | 99,590 |  |  | $ | 324,183 |
(1)For the year ended September 30, 2022, amounts include $91.3 million pre-tax related to the final settlement of the Legacy CH2M Matter (as defined in Note 19 - Contractual Guarantees, Litigation, Investigations and Insurance), net of previously recorded reserves, approximately $27 million in third party recoveries was recorded as receivables reducing SG&A and approximately $78.3 million in charges associated with real estate related impairments, the majority of which related to People and Places Solutions. Included in the years ended October 1, 2021 and October 2, 2020 were $2.4 million and $161.4 million in charges associated mainly with real estate impairments. (2)The year ended September 30, 2022 includes gains of $(8.7) million related to lease terminations. The year ended October 1, 2021 included $38.5 million in charges related to the impairment of our AWE ML investment. See Note 20- Segment Information. The activity in the Company’s accrual for the Restructuring and other charges including the program activities described above for the year ended September 30, 2022 is as follows (in thousands):
Balance at October 1, 2021 | $ | 14,031 |
Net Charges (1) | 25,824 |
Payments & Usage | (35,718) |
Balance at September 30, 2022 | $ | 4,137 |
(1) Exclude s $135.3 million in other net charges mainly comprised of $91.3 million pre-tax in charges and payments for the final settlement of the Legacy CH2M Matter (net of previously recorded reserves), approximately $27 million in third party recoveries was recorded as receivables reducing SG&A and $71.0 million associated mainly with real estate related impairments and other transformation activities described above during the year ended September 30, 2022. The following table summarizes the Restructuring and other charges by major type of costs for the years ended September 30, 2022, October 1, 2021 and October 2, 2020 (in thousands):
| September 30, 2022 |  | October 1, 2021 |  | October 2, 2020
Lease Abandonments and Impairments (1) | $ | 69,802 |  |  | $ | 4,282 |  |  | $ | 151,150 |
Voluntary and Involuntary Terminations | 5,635 |  |  | 15,773 |  |  | 53,484 |
Outside Services | 22,340 |  |  | 35,210 |  |  | 88,476 |
Other (2) | 63,286 |  |  | 44,325 |  |  | 31,073 |
Total | $ | 161,063 |  |  | $ | 99,590 |  |  | $ | 324,183 |
(1)The years ended September 30, 2022 and October 2, 2020 include approximately $78.3 million and $161.4 million, respectively, in charges associated with real estate related impairments reflected in Lease Abandonments and Impairments, offset by the gain of $(8.7) million related to lease terminations for the year ended September 30, 2022. (2)Amounts in the year ended September 30, 2022 are mainly comprised of $91.3 million in other charges related to the final pre-tax settlement of the Legacy CH2M Matter, net of previously recorded reserves and approximately $27 million in third party recoveries was recorded as receivables reducing SG&A. Amounts in the year ended October 1, 2021 are mainly comprised of $38.5 million in charges related to the impairment of our AWE Management Ltd. investment. Cumulative amounts since 2017 incurred to date under our various restructuring and other activities described above by each major type of cost as of September 30, 2022 are as follows (in thousands):
Lease Abandonments and Impairments | $ | 387,601 |
Voluntary and Involuntary Terminations | 150,377 |
Outside Services | 316,334 |
Other | 208,265 |
Total | $ | 1,062,577 |

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -URI https://asc.fasb.org/extlink&oid=115931487&loc=d3e140904-122747 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI https://asc.fasb.org/topic&trid=2175745 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869 + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration