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Restructuring and Other Charges
 12 Months Ended
Sep. 27, 2024
Restructuring and Related Activities [Abstract]  
Restructuring and Other Charges Restructuring and Other Charges
During fiscal 2023, the Company implemented restructuring and separation initiatives relating to the Separation Transaction which are expected to continue through fiscal 2025. Restructuring initiatives were also implemented during fiscal 2023 relating to our investment in PA Consulting, which are expected to be substantially completed in early fiscal 2025, and the DVS segment reorganization, which is substantially completed. While restructuring activities for each of these programs are comprised mainly of employee termination costs, the separation activities and costs are primarily related to the engagement of outside services, dedicated internal personnel and other related costs dedicated to the Company's Separation Transaction.

During fiscal 2022, the Company implemented certain restructuring and integration initiatives relating to the acquisitions of (i) BlackLynx, Inc. (“BlackLynx”) in November 2021, and (ii) StreetLight Data, Inc. (“StreetLight”) in February 2022. Also, during fiscal 2022 and continuing into fiscal 2023, 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 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 for the years ended September 27, 2024, September 29, 2023 and September 30, 2022 (in thousands):
September 27, 2024September 29, 2023September 30, 2022
Infrastructure & Advanced Facilities$128,529 $111,513 $154,877 
PA Consulting6,382 14,706 4,253 
Total134,911 126,219 159,130 
Amounts included in:
Operating profit (mainly Selling, General and Administrative costs (“SG&A") (1)169,844 129,596 167,798 
Other (Income) Expense, net (2)(34,933)(3,377)(8,668)
$134,911 $126,219 $159,130 
(1)The years ended September 27, 2024 and September 29, 2023 included $163.4 million and $61.1 million of restructuring and other charges mainly relating to the Separation Transaction (primarily professional services and employee separation costs) and $6.4 million and $14.3 million in restructuring and other charges relating to the Company's investment in PA Consulting (primarily employee separation costs), respectively. Included in the years ended September 29, 2023 and September 30, 2022 were $49.1 million and $77.0 million in charges associated mainly with real estate impairments, the majority of which related to Infrastructure & Advanced Facilities. For the year ended September 30, 2022, amounts included $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 and approximately $27 million in third party recoveries was recorded as receivables reducing SG&A.
(2)The year ended September 27, 2024 includes a $35.2 million realized gain on interest rate swaps settled during the fourth quarter of fiscal 2024. The years ended September 29, 2023 and September 30, 2022 included gains of $3.4 million and $8.7 million, respectively, related to lease terminations.
The activity in the Company’s accrual for the Restructuring and other charges including the program activities described above for the year ended September 27, 2024 is as follows (in thousands):
Balance at September 29, 2023$35,656 
Net Charges (1)134,862 
Payments & Other(125,583)
Balance at September 27, 2024$44,935 
(1)Excludes other net charges associated mainly with real estate related impairments during the year ended September 27, 2024.
The following table summarizes the Restructuring and other charges by major type of costs for the years ended September 27, 2024, September 29, 2023 and September 30, 2022 (in thousands):
September 27, 2024September 29, 2023September 30, 2022
Lease Abandonments and Impairments$49 $44,788 $67,458 
Voluntary and Involuntary Terminations47,881 37,235 2,612 
Outside Services (1)100,593 35,099 22,068 
Other (2)(13,612)9,097 66,992 
Total$134,911 $126,219 $159,130 
(1)Amounts in the year ended September 27, 2024 are comprised of professional services relating to the Separation Transaction.
(2)Amounts in the year ended September 27, 2024 and September 29, 2023 are mainly comprised of activities associated with the Separation Transaction including a realized gain of $35.2 million on interest rate swaps settled during fourth quarter of fiscal 2024. Amounts in the year ended September 29, 2023 are mainly comprised of charges associated with the write off of fixed assets associated with the Separation Transaction. 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.
Cumulative amounts incurred to date for restructuring and other programs active at the end of fiscal 2024 by each major type of cost as of September 27, 2024 are as follows (in thousands):
Voluntary and Involuntary Terminations79,288 
Outside Services134,076 
Other (1)(4,100)
Total$209,264