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Other Financial Information

9 Months Ended

Jun. 30, 2019

12. Other Financial Information

Accrued expenses and other current liabilities consist of the following:


	June 30,		September 30,
	2019		2018
	(in millions)
Accrued salaries and benefits	$	851.1	$	1,035.9
Accrued contract costs		880.7		861.0
Other accrued expenses		426.1		370.1
	$	2,157.9	$	2,267.0

Accrued contract costs above include balances related to professional liability accruals of $473.7 million and $519.5 million as of June 30, 2019 and September 30, 2018, respectively. The remaining accrued contract costs primarily relate to costs for services provided by subcontractors and other non-employees. Liabilities recorded related to accrued contract losses were not material as of June 30, 2019 and September 30, 2018. The Company did not have material revisions to estimates for contracts where revenue is recognized using the percentage-of-completion method during the nine months ended June 30, 2019 and 2018. In the first quarter of fiscal 2019, the Company commenced a restructuring plan to improve profitability. The Company incurred restructuring expenses of $79.2 million, including personnel and other costs of $56.9 million and real estate costs of $22.3 million during the nine months ended June 30, 2019, of which $29.0 million was accrued and unpaid at June 30, 2019. The Company incurred $26.7 million of severance expenses relating to restructuring activities during the nine months ended June 30, 2018.

During the twelve months ended September 30, 2016, the Company recorded revenue related to the expected accelerated recovery of a pension related entitlement from the federal government of approximately $50 million, which is included in accounts receivable-net at June 30, 2019. The entitlement resulted from pension costs that are reimbursable through government contracts in accordance with Cost Accounting Standards. The accelerated recognition resulted from an amendment to freeze pension benefits under URS Federal Services, Inc. Employees Retirement Plan. The Company entered into an agreement with the federal government to settle substantially all of the entitlement.