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PA Consulting Redeemable Noncontrolling Interests
 9 Months Ended
Jun. 28, 2024
PA Consulting Group Limited  
Business Acquisition [Line Items]  
PA Consulting Redeemable Noncontrolling Interests PA Consulting Redeemable Noncontrolling Interests
On March 2, 2021, Jacobs completed the strategic investment of a 65% interest in PA Consulting, a UK-based leading innovation and transformation consulting firm. PA Consulting is accounted for as a consolidated subsidiary and as a separate operating segment.
In connection with the PA Consulting investment, the Company recorded redeemable noncontrolling interests, including subsequent purchase accounting adjustments, representing the noncontrolling interest holders' equity interests in the form of preferred and common shares of PA Consulting, with substantially all of the value associated with these interests allocable to the preferred shares.
During the first nine months of 2024 and 2023, PA Consulting repurchased certain shares of the redeemable noncontrolling interest holders for cash amounts of $41.8 million and $90.4 million, respectively. The difference between the cash purchase prices and the recorded book values of these repurchased interests was recorded in the Company’s consolidated retained earnings. The Company held 70% and 69% of the outstanding ownership of PA Consulting as of June 28, 2024 and September 29, 2023, respectively.
During the first nine months of 2024, the Company recognized approximately $1.7 million in redemption value adjustments associated with redeemable noncontrolling interests preference share repurchase and reissuance activities that were recorded as an increase in consolidated retained earnings and a $0.01 increase in earnings per share, the results of which had no impact on the Company’s overall results of operations, financial position or cash flows. See Note 6- Earnings Per Share and Certain Related Information for more information.
Changes in the redeemable noncontrolling interests during the nine months ended June 28, 2024 are as follows (in thousands):
Balance at September 29, 2023$632,979 
Accrued Preferred Dividend to Preference Shareholders61,661 
Attribution of Preferred Dividend to Common Shareholders(61,661)
Net earnings attributable to redeemable noncontrolling interests to Common Shareholders10,112 
Redeemable Noncontrolling interests redemption value adjustment99,358 
Repurchase of redeemable noncontrolling interests(46,173)
Issuance of redeemable noncontrolling interests22,586 
Cumulative translation adjustment and other15,603 
Balance at June 28, 2024$734,465 
In addition, certain employees and non-employees of PA Consulting are eligible to receive equity-based incentive grants in the future under the terms of the applicable agreements. During the first nine months of fiscal 2024 and 2023, the Company recorded $11.5 million and $5.1 million, respectively, in expenses associated with these agreements which is reflected in selling, general and administrative expenses in the consolidated statements of earnings.
The Company, through its investment in PA Consulting, held $3.6 million and $2.8 million at June 28, 2024 and September 29, 2023, respectively, in cash that is restricted from general use and is included in Prepaid expenses and other in the Company's Consolidated Balance Sheets.