Mergers and Acquisitions (Tables)

12 Months Ended

Oct. 01, 2017

Summary of estimated fair values of assets acquired and liabilities assumed

The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the respective acquisition dates for our acquisitions completed in fiscal 2016 (in thousands):



Accounts receivable	$	71,515
Other current assets	18,869
Property and equipment	14,218
Goodwill	108,323
Backlog and trade name intangible assets	29,445
Other assets	747
Current liabilities	(78,311		)
Borrowings	(65,086		)
Other long-term liabilities	(4,885		)
Net assets acquired	$	94,835

Summary of consolidated pro forma operating results

The table below presents summarized unaudited consolidated pro forma operating results including the related acquisition, integration and debt pre-payment charges, assuming we had acquired Coffey and INDUS at the beginning of fiscal 2016. These pro-forma operating results are presented for illustrative purposes only and are not indicative of the operating results that would have been achieved had the related events occurred at the beginning of fiscal 2016.



	Pro-Forma
	Fiscal Year Ended
	October 1, 2017		October 2, 2016
	(in thousands, except per share data)
Revenue	$	2,753,360	$	2,714,658
Operating income	183,342		152,676
Net income attributable to Tetra Tech	117,874		98,871
Earnings per share attributable to Tetra Tech
Basic	$	2.07	$	1.70
Diluted	$	2.04	$	1.68

Summary of acquisition and integration expenses

Acquisition and integration expenses in the accompanying consolidated statements of income are comprised of the following:



	Fiscal Year Ended October 2, 2016
	(in thousands)
Severance including change in control payments	$	10,917
Professional services	5,685
Real estate-related	2,946
Total	$	19,548

Summary of changes in the carrying value of estimated contingent earn-out liabilities

The following table summarizes the changes in the carrying value of estimated contingent earn-out liabilities:



	Fiscal Year Ended
	October 1, 2017			October 2, 2016			September 27, 2015
	(in thousands)
Beginning balance (at fair value)	$	8,757		$	4,169		$	7,030
Estimated earn-out liabilities for acquisitions during the fiscal year	1,604			4,745			4,100
Increases due to re-measurement of fair value reported in interest expense	260			271			136
Net increase (decrease) due to re-measurement of fair value reported as losses (gains) in operating income	(6,923		)	2,823			(3,113		)
Foreign exchange impact	59			—			(785		)
Earn-out payments:
Reported as cash used in operating activities	—			—			—
Reported as cash used in financing activities	(1,319		)	(3,251		)	(3,199		)
Ending balance (at fair value)	$	2,438		$	8,757		$	4,169