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Restructuring and Other Charges | 9 Months Ended
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Jul. 01, 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 initiative 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 11- Joint ventures, VIEs and other investments. 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 The 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 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. These activities have continued through fiscal 2021 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 line of business ("LOB") in connection with the CH2M acquisition, John Wood Group's nuclear business, Buffalo Group, StreetLight and BlackLynx acquisitions, 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 three and nine month periods ended July 1, 2022 and July 2, 2021 (in thousands):
| Three Months Ended |  | Nine Months Ended
| July 1, 2022 |  | July 2, 2021 |  | July 1, 2022 |  | July 2, 2021
Critical Mission Solutions | $ | (255) |  |  | $ | 921 |  |  | $ | 4,361 |  |  | $ | 4,840 |
People & Places Solutions | 25 |  |  | 592 |  |  | 61,865 |  |  | 7,291 |
PA Consulting | 759 |  |  | 1,351 |  |  | 2,475 |  |  | 14,449 |
Corporate | 4,048 |  |  | 10,904 |  |  | 113,399 |  |  | 65,929 |
Total | $ | 4,577 |  |  | $ | 13,768 |  |  | $ | 182,100 |  |  | $ | 92,509 |
Amounts included in: |  |  |  |  |  |  |
Operating profit (mainly SG&A) (1) | $ | 4,707 |  |  | $ | 8,058 |  |  | $ | 192,782 |  |  | $ | 53,638 |
Other (Income) Expense, net (2) | (130) |  |  | 5,710 |  |  | (10,682) |  |  | 38,871 |
| $ | 4,577 |  |  | $ | 13,768 |  |  | $ | 182,100 |  |  | $ | 92,509 |
(1)Included in the nine month period ended July 1, 2022 was $91.3 million related to the final pre-tax settlement of the Legacy CH2M Matter (as defined in Note 19 - Commitments and Contingencies and Derivative Financial Instruments), net of previously recorded reserves and approximately $77 million in charges associated mainly with real estate impairments and related charges and $24.5 million in transformation and other charges, the majority of which related to People and Places Solutions. (2)The nine month period ended July 1, 2022 included gains of $(7.1) million related to lease terminations. The nine months ended July 2, 2021 included $38.9 million in charges related to the impairment of our AWE ML investment. See Note 20- Segment Information. The activity in the Company’s accruals for Restructuring and other charges for the nine months ended July 1, 2022 is as follows (in thousands):
Balance at October 1, 2021 | $ | 14,031 |
Net (Credits) Charges (1) | 19,604 |
Payments and other | (25,297) |
Balance at July 1, 2022 | $ | 8,338 |
(1) Excludes $162.5 million in other net charges mainly comprised of $91.3 million in charges and payments for the final pre-tax settlement of the Legacy CH2M Matter (net of previously recorded reserves) during the three months ended July 1, 2022, and $71.2 million associated mainly with real estate related impairments and other transformation activities described above during the nine months ended July 1, 2022. The following table summarizes the Restructuring and other charges by major type of costs for the three and nine months ended July 1, 2022 and July 2, 2021 (in thousands):
| Three Months Ended |  | Nine Months Ended
| July 1, 2022 |  | July 2, 2021 |  | July 1, 2022 |  | July 2, 2021
Lease Abandonments and Impairments (1) | $ | (32) |  |  | $ | 354 |  |  | $ | 67,805 |  |  | $ | 2,565 |
Voluntary and Involuntary Terminations | (76) |  |  | 1,692 |  |  | 5,035 |  |  | 14,227 |
Outside Services | 4,337 |  |  | 5,463 |  |  | 20,513 |  |  | 31,516 |
Other (2) | 348 |  |  | 6,259 |  |  | 88,747 |  |  | 44,201 |
Total | $ | 4,577 |  |  | $ | 13,768 |  |  | $ | 182,100 |  |  | $ | 92,509 |
(1)The nine month period in fiscal 2022 includes approximately $74.9 million in charges associated mainly with real estate related impairments and other transformation activities reflected in Lease Abandonments and Impairments. (2)The nine month period ended July 1, 2022 amounts are comprised mainly of $91.3 million in other charges related to the final pre-tax settlement of the Legacy CH2M Matter, net of previously recorded reserves. Also, the nine months ended July 2, 2021 included $38.9 million in Other charges associated with the impairment of our investment in AWE ML. Cumulative amounts incurred to date under our various Restructuring and other activities described above by each major type of cost as of July 1, 2022 are as follows (in thousands):
Lease Abandonments and Impairments | $ | 385,603 |
Voluntary and Involuntary Terminations | 149,777 |
Outside Services | 314,507 |
Other | 233,727 |
Total | $ | 1,083,614 |

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- 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
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