Joint Ventures and VIE's and Other Investments

12 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Joint Ventures and VIE's and Other Investments

Joint Ventures, VIEs and Other Investments

For consolidated joint ventures, the entire amount of the revenue recognized for services performed and the costs associated with these services, including the services provided by the other joint venture partners, are included in the Company's results of operations. Likewise, the entire amount of each of the assets and liabilities are included in the Company’s consolidated balance sheet. There are no consolidated VIEs that have debt or credit facilities. Summary financial information of consolidated VIEs is as follows (in millions):


	September 30, 2022		October 1, 2021
Current assets	$	353.9	$	289.7
Non-Current assets	—		0.1
Total assets	$	353.9	$	289.8
Current liabilities	$	228.1	$	220.8

Total liabilities	$	228.1	$	220.8


	For the Years Ended
	September 30, 2022		October 1, 2021		October 2, 2020
Revenue	$	1,253.8	$	1,037.3	$	912.9
Direct cost of contracts	(985.5)		(910.1)		(807.9)
Gross profit	268.3		127.2		105.0
Net earnings	$	92.3	$	84.3	$	72.6

Unconsolidated joint ventures are accounted for under the equity method or proportionate consolidation. Proportionate consolidation is used for joint ventures that include unincorporated legal entities and activities of the joint venture are construction-related. For those joint ventures accounted for under proportionate consolidation, only the Company’s pro rata share of assets, liabilities, revenue, and costs are included in the Company’s balance sheet and results of operations.

For the proportionate consolidated VIEs, the carrying value of assets and liabilities was $109.3 million and $129.2 million as of September 30, 2022, respectively and $115.1 million and $129.5 million as of October 1, 2021, respectively. For those joint ventures accounted for under the equity method, the Company's investment balances for the joint venture is included in other noncurrent Assets: miscellaneous on the balance sheet and the Company’s pro rata share of net income is included in revenue. In limited cases, there are basis differences between the equity in the joint venture and Jacobs' investment created when Jacobs purchased their share of the joint venture. These basis differences are amortized based on an internal allocation to underlying net assets, excluding allocations to goodwill. Our investments in equity method joint ventures on the Consolidated Balance Sheets as of September 30, 2022 and October 1, 2021 were a net asset of $56.6 million and $121.3 million, respectively. During the years ended September 30, 2022, October 1, 2021, and October 2, 2020, we recognized income from equity method joint ventures of $36.5 million, $60.9 million, and $82.2 million, respectively.

Accounts receivable from unconsolidated joint ventures accounted for under the equity method is $21.1 million and $19.7 million as of September 30, 2022 and October 1, 2021, respectively.

The Company currently holds a 24.5% interest in AWE Management Ltd ("AWE") that is accounted for under the equity method, and the carrying value of the Company’s investment as of October 2, 2020 was approximately $38 million. As of October 2, 2020, AWE was under a contractual operating arrangement with the UK Ministry of Defence (MoD) with multiple years remaining under the arrangement. On November 2, 2020, the MoD unexpectedly announced plans to change its current operating agreements with AWE that would result in the early termination of the current contract in 2021. During the fiscal year ended October 1, 2021, the Company recorded other-than-temporary impairment charges on its investment in AWE in the amount of $38.5 million, which were included in miscellaneous income (expense), net in the consolidated statement of earnings. During fiscal year 2022, the contractual operating arrangement with MoD was terminated which has resulted in the wind down and full impairment of the AWE Joint Venture with immaterial activity expected going forward.

The Company held a cost method investment in C3.ai, Inc. ("C3") and in the first quarter of fiscal 2021, C3 completed an initial public offering and as a result the Company carried its investment in C3 at fair value, with changes

reflected in net income as it is an investment in equity securities with a readily determinable fair value based on quoted market prices. During fiscal 2021 and subsequent to the IPO, the Company sold all shares owned in C3. Dividend income, unrealized gains and related realized gains on disposal of these shares of $49.6 million were recognized in miscellaneous income (expense), net, in the Consolidated Statement of Earnings for the year ended October 1, 2021.