| Delaware | 88-1121891 | |||||||||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||||||||
| 1999 Bryan Street | Suite 3500 | Dallas | Texas | 75201 | ||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | |||||||||
| Common Stock | $1 par value | J | New York Stock Exchange | ||||||||
| Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
| Emerging growth company | ☐ | |||||||||||||
| Page No. | |||||||||||
| PART I | |||||||||||
| Item 1. | |||||||||||
| Item 2. | |||||||||||
| Item 3. | |||||||||||
| Item 4. | |||||||||||
| PART II | |||||||||||
| Item 1. | |||||||||||
| Item 1A. | |||||||||||
| Item 2. | |||||||||||
| Item 3. | |||||||||||
| Item 4. | |||||||||||
| Item 5. | |||||||||||
| Item 6. | |||||||||||
| June 28, 2024 | September 29, 2023 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 1,208,661 | $ | 926,582 | |||||||
| Receivables and contract assets | 3,774,227 | 3,558,806 | |||||||||
| Prepaid expenses and other | 154,721 | 204,965 | |||||||||
| Total current assets | 5,137,609 | 4,690,353 | |||||||||
| Property, Equipment and Improvements, net | 366,231 | 357,032 | |||||||||
| Other Noncurrent Assets: | |||||||||||
| Goodwill | 7,404,867 | 7,343,526 | |||||||||
| Intangibles, net | 1,156,577 | 1,271,943 | |||||||||
| Deferred income tax assets | 101,748 | 53,131 | |||||||||
| Operating lease right-of-use assets | 383,911 | 414,384 | |||||||||
| Miscellaneous | 497,347 | 486,740 | |||||||||
| Total other noncurrent assets | 9,544,450 | 9,569,724 | |||||||||
| $ | 15,048,290 | $ | 14,617,109 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Current maturities of long-term debt | $ | 825,166 | $ | 61,430 | |||||||
| Accounts payable | 1,262,783 | 1,143,802 | |||||||||
| Accrued liabilities | 1,303,207 | 1,301,644 | |||||||||
| Operating lease liability | 147,659 | 152,077 | |||||||||
| Contract liabilities | 965,440 | 763,608 | |||||||||
| Total current liabilities | 4,504,255 | 3,422,561 | |||||||||
| Long-term debt | 2,091,456 | 2,813,471 | |||||||||
| Liabilities relating to defined benefit pension and retirement plans | 268,166 | 258,540 | |||||||||
| Deferred income tax liabilities | 147,006 | 221,158 | |||||||||
| Long-term operating lease liability | 482,262 | 543,230 | |||||||||
| Other deferred liabilities | 144,250 | 125,088 | |||||||||
| Commitments and Contingencies | — | — | |||||||||
| Redeemable Noncontrolling interests | 734,465 | 632,979 | |||||||||
| Stockholders’ Equity: | |||||||||||
| Capital stock: | |||||||||||
Preferred stock, $1 par value, authorized - 1,000,000 shares; issued and outstanding - none | — | — | |||||||||
Common stock, $1 par value, authorized - 240,000,000 shares; issued and outstanding - 124,253,511 shares and 125,976,998 shares as of June 28, 2024 and September 29, 2023, respectively | 124,254 | 125,977 | |||||||||
| Additional paid-in capital | 2,741,750 | 2,735,325 | |||||||||
| Retained earnings | 4,557,204 | 4,542,872 | |||||||||
| Accumulated other comprehensive loss | (806,415) | (857,954) | |||||||||
| Total Jacobs stockholders’ equity | 6,616,793 | 6,546,220 | |||||||||
| Noncontrolling interests | 59,637 | 53,862 | |||||||||
| Total Group stockholders’ equity | 6,676,430 | 6,600,082 | |||||||||
| $ | 15,048,290 | $ | 14,617,109 | ||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenues | $ | 4,231,580 | $ | 4,186,702 | $ | 12,659,898 | $ | 12,063,702 | |||||||||||||||
| Direct cost of contracts | (3,314,800) | (3,329,959) | (9,987,965) | (9,501,953) | |||||||||||||||||||
| Gross profit | 916,780 | 856,743 | 2,671,933 | 2,561,749 | |||||||||||||||||||
| Selling, general and administrative expenses | (656,316) | (587,002) | (1,926,417) | (1,764,341) | |||||||||||||||||||
| Operating Profit | 260,464 | 269,741 | 745,516 | 797,408 | |||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||
| Interest income | 10,321 | 7,830 | 27,960 | 18,467 | |||||||||||||||||||
| Interest expense | (45,801) | (43,787) | (133,385) | (124,477) | |||||||||||||||||||
| Miscellaneous income (expense), net | 1,166 | (7,099) | (6,605) | (14,920) | |||||||||||||||||||
| Total other expense, net | (34,314) | (43,056) | (112,030) | (120,930) | |||||||||||||||||||
| Earnings from Continuing Operations Before Taxes | 226,150 | 226,685 | 633,486 | 676,478 | |||||||||||||||||||
| Income Tax Expense from Continuing Operations | (67,739) | (54,166) | (118,743) | (123,329) | |||||||||||||||||||
| Net Earnings of the Group from Continuing Operations | 158,411 | 172,519 | 514,743 | 553,149 | |||||||||||||||||||
| Net Earnings (Loss) of the Group from Discontinued Operations | 485 | 294 | (857) | (489) | |||||||||||||||||||
| Net Earnings of the Group | 158,896 | 172,813 | 513,886 | 552,660 | |||||||||||||||||||
| Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (8,551) | (8,204) | (23,117) | (23,038) | |||||||||||||||||||
| Net Earnings Attributable to Redeemable Noncontrolling interests | (3,411) | (370) | (10,112) | (13,225) | |||||||||||||||||||
| Net Earnings Attributable to Jacobs from Continuing Operations | 146,449 | 163,945 | 481,514 | 516,886 | |||||||||||||||||||
| Net Earnings Attributable to Jacobs | $ | 146,934 | $ | 164,239 | $ | 480,657 | $ | 516,397 | |||||||||||||||
| Net Earnings Per Share: | |||||||||||||||||||||||
| Basic Net Earnings from Continuing Operations Per Share | $ | 1.17 | $ | 1.29 | $ | 3.85 | $ | 4.08 | |||||||||||||||
| Basic Net Loss from Discontinued Operations Per Share | $ | — | $ | — | $ | (0.01) | $ | — | |||||||||||||||
| Basic Earnings Per Share | $ | 1.17 | $ | 1.30 | $ | 3.84 | $ | 4.07 | |||||||||||||||
| Diluted Net Earnings from Continuing Operations Per Share | $ | 1.17 | $ | 1.29 | $ | 3.83 | $ | 4.06 | |||||||||||||||
| Diluted Net Loss from Discontinued Operations Per Share | $ | — | $ | — | $ | (0.01) | $ | — | |||||||||||||||
| Diluted Earnings Per Share | $ | 1.17 | $ | 1.29 | $ | 3.82 | $ | 4.06 | |||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Net Earnings of the Group | $ | 158,896 | $ | 172,813 | $ | 513,886 | $ | 552,660 | |||||||||||||||
| Other Comprehensive Income: | |||||||||||||||||||||||
| Foreign currency translation adjustment | 1,418 | 55,482 | 74,595 | 242,768 | |||||||||||||||||||
| Change in cash flow hedges | (3,659) | 15,644 | (29,398) | (14,311) | |||||||||||||||||||
| Change in pension plan liabilities | 2,245 | (6,765) | (4,214) | (29,025) | |||||||||||||||||||
| Other comprehensive income before taxes | 4 | 64,361 | 40,983 | 199,432 | |||||||||||||||||||
| Income Tax (Expense) Benefit: | |||||||||||||||||||||||
| Foreign currency translation adjustment | 4,390 | 5,293 | 4,390 | (348) | |||||||||||||||||||
| Cash flow hedges | 904 | (3,637) | 7,573 | 4,680 | |||||||||||||||||||
| Change in pension plan liabilities | (470) | (363) | (1,407) | (1,022) | |||||||||||||||||||
| Income Tax (Expense) Benefit: | 4,824 | 1,293 | 10,556 | 3,310 | |||||||||||||||||||
| Net other comprehensive income | 4,828 | 65,654 | 51,539 | 202,742 | |||||||||||||||||||
| Net Comprehensive Income of the Group | 163,724 | 238,467 | 565,425 | 755,402 | |||||||||||||||||||
| Net Earnings Attributable to Noncontrolling Interests | (8,551) | (8,204) | (23,117) | (23,038) | |||||||||||||||||||
| Net Earnings Attributable to Redeemable Noncontrolling interests | (3,411) | (370) | (10,112) | (13,225) | |||||||||||||||||||
| Net Comprehensive Income Attributable to Jacobs | $ | 151,762 | $ | 229,893 | $ | 532,196 | $ | 719,139 | |||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Jacobs Stockholders’ Equity | Noncontrolling Interests | Total Group Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Balances at March 31, 2023 | $ | 126,805 | $ | 2,697,523 | $ | 4,393,351 | $ | (838,042) | $ | 6,379,637 | $ | 48,387 | $ | 6,428,024 | |||||||||||||||||||||||||||
| Net earnings | — | — | 164,239 | — | 164,239 | 8,204 | 172,443 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of deferred taxes of $(5,293) | — | — | — | 60,775 | 60,775 | — | 60,775 | ||||||||||||||||||||||||||||||||||
Pension plan liability, net of deferred taxes of $363 | — | — | — | (7,128) | (7,128) | — | (7,128) | ||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of deferred taxes of $3,637 | — | — | — | 12,007 | 12,007 | — | 12,007 | ||||||||||||||||||||||||||||||||||
| Dividends | — | — | (33,216) | — | (33,216) | — | (33,216) | ||||||||||||||||||||||||||||||||||
| Redeemable Noncontrolling interests redemption value adjustment | — | — | 34,101 | — | 34,101 | — | 34,101 | ||||||||||||||||||||||||||||||||||
| Repurchase and issuance of redeemable noncontrolling interests | — | — | 3,599 | — | 3,599 | — | 3,599 | ||||||||||||||||||||||||||||||||||
| Noncontrolling interests - distributions and other | — | — | — | — | — | (5,891) | (5,891) | ||||||||||||||||||||||||||||||||||
| Stock based compensation | — | 20,623 | — | — | 20,623 | — | 20,623 | ||||||||||||||||||||||||||||||||||
| Issuances of equity securities including shares withheld for taxes | 164 | 12,493 | (531) | — | 12,126 | — | 12,126 | ||||||||||||||||||||||||||||||||||
| Repurchases of equity securities | (1,088) | (23,145) | (100,814) | — | (125,047) | — | (125,047) | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2023 | $ | 125,881 | $ | 2,707,494 | $ | 4,460,729 | $ | (772,388) | $ | 6,521,716 | $ | 50,700 | $ | 6,572,416 | |||||||||||||||||||||||||||
| Balances at March 29, 2024 | $ | 125,216 | $ | 2,733,758 | $ | 4,576,383 | $ | (811,243) | $ | 6,624,114 | $ | 54,348 | $ | 6,678,462 | |||||||||||||||||||||||||||
| Net earnings | — | — | 146,934 | — | 146,934 | 8,551 | 155,485 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments net of deferred taxes of $(4,390) | — | — | — | 5,808 | 5,808 | — | 5,808 | ||||||||||||||||||||||||||||||||||
Pension plan liability, net of deferred taxes of $470 | — | — | — | 1,775 | 1,775 | — | 1,775 | ||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of deferred taxes of $(904) | — | — | — | (2,755) | (2,755) | — | (2,755) | ||||||||||||||||||||||||||||||||||
| Dividends | — | — | (36,561) | — | (36,561) | — | (36,561) | ||||||||||||||||||||||||||||||||||
| Redeemable Noncontrolling interests redemption value adjustment | — | — | (2,796) | — | (2,796) | — | (2,796) | ||||||||||||||||||||||||||||||||||
| Repurchase and issuance of redeemable noncontrolling interests | — | — | (338) | — | (338) | — | (338) | ||||||||||||||||||||||||||||||||||
| Noncontrolling interests - distributions and other | — | — | — | — | — | (3,262) | (3,262) | ||||||||||||||||||||||||||||||||||
| Stock based compensation | — | 18,994 | — | — | 18,994 | — | 18,994 | ||||||||||||||||||||||||||||||||||
| Issuances of equity securities including shares withheld for taxes | 111 | 12,463 | (37) | — | 12,537 | — | 12,537 | ||||||||||||||||||||||||||||||||||
| Repurchases of equity securities | (1,073) | (23,465) | (126,381) | — | (150,919) | — | (150,919) | ||||||||||||||||||||||||||||||||||
| Balances at June 28, 2024 | $ | 124,254 | $ | 2,741,750 | $ | 4,557,204 | $ | (806,415) | $ | 6,616,793 | $ | 59,637 | $ | 6,676,430 | |||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Jacobs Stockholders’ Equity | Noncontrolling Interests | Total Group Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
| Balances at September 30, 2022 | $ | 127,393 | $ | 2,682,009 | $ | 4,225,784 | $ | (975,130) | $ | 6,060,056 | $ | 44,336 | $ | 6,104,392 | |||||||||||||||||||||||||||
| Net earnings | — | — | 516,397 | — | 516,397 | 23,038 | 539,435 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of deferred taxes of $348 | — | — | — | 242,420 | 242,420 | — | 242,420 | ||||||||||||||||||||||||||||||||||
Pension liability, net of deferred taxes of $1,022 | — | — | — | (30,047) | (30,047) | — | (30,047) | ||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of deferred taxes of $(4,680) | — | — | — | (9,631) | (9,631) | — | (9,631) | ||||||||||||||||||||||||||||||||||
| Dividends | — | — | (66,652) | — | (66,652) | — | (66,652) | ||||||||||||||||||||||||||||||||||
| Redeemable Noncontrolling interests redemption value adjustment | — | — | (10,393) | — | (10,393) | — | (10,393) | ||||||||||||||||||||||||||||||||||
| Repurchase of redeemable noncontrolling interests | — | — | 14,936 | — | 14,936 | — | 14,936 | ||||||||||||||||||||||||||||||||||
| Noncontrolling interests - distributions and other | — | — | — | — | — | (16,674) | (16,674) | ||||||||||||||||||||||||||||||||||
| Stock based compensation | — | 55,908 | — | — | 55,908 | — | 55,908 | ||||||||||||||||||||||||||||||||||
| Issuances of equity securities including shares withheld for taxes | 814 | 18,779 | (5,302) | — | 14,291 | — | 14,291 | ||||||||||||||||||||||||||||||||||
| Repurchases of equity securities | (2,326) | (49,202) | (214,041) | — | (265,569) | — | (265,569) | ||||||||||||||||||||||||||||||||||
| Balances at June 30, 2023 | $ | 125,881 | $ | 2,707,494 | $ | 4,460,729 | $ | (772,388) | $ | 6,521,716 | $ | 50,700 | $ | 6,572,416 | |||||||||||||||||||||||||||
| Balances at September 29, 2023 | $ | 125,977 | $ | 2,735,325 | $ | 4,542,872 | $ | (857,954) | $ | 6,546,220 | $ | 53,862 | $ | 6,600,082 | |||||||||||||||||||||||||||
| Net earnings | — | — | 480,657 | — | 480,657 | 23,117 | 503,774 | ||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of deferred taxes of $(4,390) | — | — | — | 78,985 | 78,985 | — | 78,985 | ||||||||||||||||||||||||||||||||||
Pension liability, net of deferred taxes of $1,407 | — | — | — | (5,621) | (5,621) | — | (5,621) | ||||||||||||||||||||||||||||||||||
Change in cash flow hedges, net of deferred taxes of $(7,573) | — | — | — | (21,825) | (21,825) | — | (21,825) | ||||||||||||||||||||||||||||||||||
| Dividends | — | — | (73,638) | — | (73,638) | — | (73,638) | ||||||||||||||||||||||||||||||||||
| Redeemable Noncontrolling interests redemption value adjustment | — | — | (99,358) | — | (99,358) | — | (99,358) | ||||||||||||||||||||||||||||||||||
| Repurchase and issuance of redeemable noncontrolling interests | — | — | 1,560 | — | 1,560 | — | 1,560 | ||||||||||||||||||||||||||||||||||
| Noncontrolling interests - distributions and other | — | — | — | — | — | (17,342) | (17,342) | ||||||||||||||||||||||||||||||||||
| Stock based compensation | — | 54,170 | — | — | 54,170 | — | 54,170 | ||||||||||||||||||||||||||||||||||
| Issuances of equity securities including shares withheld for taxes | 779 | 6,742 | (5,496) | — | 2,025 | — | 2,025 | ||||||||||||||||||||||||||||||||||
| Repurchases of equity securities | (2,502) | (54,487) | (289,393) | — | (346,382) | — | (346,382) | ||||||||||||||||||||||||||||||||||
| Balances at June 28, 2024 | $ | 124,254 | $ | 2,741,750 | $ | 4,557,204 | $ | (806,415) | $ | 6,616,793 | $ | 59,637 | $ | 6,676,430 | |||||||||||||||||||||||||||
| For the Nine Months Ended | |||||||||||
| June 28, 2024 | June 30, 2023 | ||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net earnings attributable to the Group | $ | 513,886 | $ | 552,660 | |||||||
| Adjustments to reconcile net earnings to net cash flows provided by operations: | |||||||||||
| Depreciation and amortization: | |||||||||||
| Property, equipment and improvements | 74,171 | 76,870 | |||||||||
| Intangible assets | 156,292 | 152,232 | |||||||||
| Stock based compensation | 54,170 | 55,908 | |||||||||
| Equity in earnings of operating ventures, net of return on capital distributions | (13,554) | (2,963) | |||||||||
| Loss on disposals of assets, net | 1,033 | 590 | |||||||||
| Impairment of long-lived assets | — | 38,131 | |||||||||
| Deferred income taxes | (116,103) | 4,944 | |||||||||
| Changes in assets and liabilities, excluding the effects of businesses acquired: | |||||||||||
| Receivables and contract assets, net of contract liabilities | 23,440 | 22,191 | |||||||||
| Prepaid expenses and other current assets | 54,512 | (7,244) | |||||||||
| Miscellaneous other assets | 68,666 | 70,218 | |||||||||
| Accounts payable | 117,220 | 109,142 | |||||||||
| Accrued liabilities | (107,709) | (285,287) | |||||||||
| Other deferred liabilities | 22,243 | (44,420) | |||||||||
| Other, net | 9,874 | 12,428 | |||||||||
| Net cash provided by operating activities | 858,141 | 755,400 | |||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Additions to property and equipment | (82,772) | (98,240) | |||||||||
| Disposals of property and equipment and other assets | 158 | 1,537 | |||||||||
| Capital contributions to equity investees, net of return of capital distributions | 1,660 | 7,964 | |||||||||
| Acquisitions of businesses, net of cash acquired | (14,000) | (17,685) | |||||||||
| Net cash used for investing activities | (94,954) | (106,424) | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
| Proceeds from long-term borrowings | 2,224,577 | 2,329,495 | |||||||||
| Repayments of long-term borrowings | (2,194,423) | (2,671,403) | |||||||||
| Proceeds from short-term borrowings | 1,106 | 3,353 | |||||||||
| Repayments of short-term borrowings | (31,882) | — | |||||||||
| Debt issuance costs | (1,606) | (11,896) | |||||||||
| Proceeds from issuances of common stock | 35,414 | 38,051 | |||||||||
| Common stock repurchases | (346,382) | (265,569) | |||||||||
| Taxes paid on vested restricted stock | (33,389) | (23,760) | |||||||||
| Cash dividends to shareholders | (106,439) | (95,672) | |||||||||
| Net dividends associated with noncontrolling interests | (17,516) | (17,287) | |||||||||
| Repurchase of redeemable noncontrolling interests | (41,788) | (90,425) | |||||||||
| Proceeds from issuances of redeemable noncontrolling interests | 19,761 | 34,771 | |||||||||
| Net cash used for financing activities | (492,567) | (770,342) | |||||||||
| Effect of Exchange Rate Changes | 12,215 | 61,309 | |||||||||
| Net Increase in Cash and Cash Equivalents and Restricted Cash | 282,835 | (60,057) | |||||||||
| Cash and Cash Equivalents, including Restricted Cash, at the Beginning of the Period | 929,445 | 1,154,207 | |||||||||
| Cash and Cash Equivalents, including Restricted Cash, at the End of the Period | $ | 1,212,280 | $ | 1,094,150 | |||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| United States | $ | 2,849,019 | $ | 2,816,773 | $ | 8,526,005 | $ | 8,047,887 | |||||||||||||||
| Europe | 939,407 | 905,917 | 2,822,187 | 2,691,479 | |||||||||||||||||||
| Canada | 67,205 | 70,164 | 192,235 | 193,880 | |||||||||||||||||||
| Asia | 32,721 | 35,054 | 98,334 | 105,520 | |||||||||||||||||||
| India | 37,946 | 39,749 | 110,963 | 126,922 | |||||||||||||||||||
| Australia and New Zealand | 170,971 | 181,308 | 509,117 | 512,416 | |||||||||||||||||||
| Middle East and Africa | 134,311 | 137,737 | 401,057 | 385,598 | |||||||||||||||||||
| Total | $ | 4,231,580 | $ | 4,186,702 | $ | 12,659,898 | $ | 12,063,702 | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Numerator for Basic and Diluted EPS: | |||||||||||||||||||||||
| Net earnings attributable to Jacobs from continuing operations | $ | 146,449 | $ | 163,945 | $ | 481,514 | $ | 516,886 | |||||||||||||||
Preferred Redeemable Noncontrolling interests redemption value adjustment (See Note 15- PA Consulting Redeemable Noncontrolling Interests) | (20) | — | 1,746 | — | |||||||||||||||||||
| Net earnings from continuing operations allocated to common stock for EPS calculation | $ | 146,429 | $ | 163,945 | $ | 483,260 | $ | 516,886 | |||||||||||||||
| Net earnings (loss) from discontinued operations allocated to common stock for EPS calculation | $ | 485 | $ | 294 | $ | (857) | $ | (489) | |||||||||||||||
| Net earnings allocated to common stock for EPS calculation | $ | 146,914 | $ | 164,239 | $ | 482,403 | $ | 516,397 | |||||||||||||||
| Denominator for Basic and Diluted EPS: | |||||||||||||||||||||||
| Shares used for calculating basic EPS attributable to common stock | 125,163 | 126,646 | 125,660 | 126,785 | |||||||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||||||||
| Stock compensation plans | 453 | 492 | 553 | 546 | |||||||||||||||||||
| Shares used for calculating diluted EPS attributable to common stock | 125,616 | 127,138 | 126,213 | 127,331 | |||||||||||||||||||
| Net Earnings Per Share: | |||||||||||||||||||||||
| Basic Net Earnings from Continuing Operations Per Share | $ | 1.17 | $ | 1.29 | $ | 3.85 | $ | 4.08 | |||||||||||||||
| Basic Net Loss from Discontinued Operations Per Share | $ | — | $ | — | $ | (0.01) | $ | — | |||||||||||||||
| Basic Earnings Per Share | $ | 1.17 | $ | 1.30 | $ | 3.84 | $ | 4.07 | |||||||||||||||
| Diluted Net Earnings from Continuing Operations Per Share | $ | 1.17 | $ | 1.29 | $ | 3.83 | $ | 4.06 | |||||||||||||||
| Diluted Net Loss from Discontinued Operations Per Share | $ | — | $ | — | $ | (0.01) | $ | — | |||||||||||||||
| Diluted Earnings Per Share | $ | 1.17 | $ | 1.29 | $ | 3.82 | $ | 4.06 | |||||||||||||||
On January 16, 2020, the Company's Board of Directors authorized a share repurchase program of up to $1.0 billion of the Company's common stock (the "2020 Repurchase Authorization"). The 2020 Repurchase Authorization expired on January 15, 2023. On January 25, 2023, the Company's Board of Directors authorized an incremental share repurchase program of up to $1.0 billion of the Company's common stock, to expire on January 25, 2026 (the "2023 Repurchase Authorization"). At June 28, 2024, the Company had $528.5 million remaining under the 2023 Repurchase Authorization. | ||
| Amount Authorized (2023 Repurchase Authorization) | Average Price Per Share (1) | Total Shares Retired | Shares Repurchased | |||||||||||||||||
| $1,000,000,000 | $140.42 | 1,074,763 | 1,074,763 | |||||||||||||||||
Our share repurchase program does not obligate the Company to purchase any shares. Share repurchases may be executed through various means including, without limitation, accelerated share repurchases, open market transactions, privately negotiated transactions, purchases pursuant to Rule 10b5-1 plans or otherwise. The authorization for the share repurchase programs may be terminated, increased or decreased by the Company’s Board of Directors in its discretion at any time. The timing, amount and manner of share repurchases may depend upon market conditions and economic circumstances, availability of investment opportunities, the availability and costs of financing, currency fluctuations, the market price of the Company's common stock, other uses of capital and other factors. | ||
| Declaration Date | Record Date | Payment Date | Cash Amount (per share) | |||||||||||||||||
| May 2, 2024 | May 24, 2024 | June 21, 2024 | $0.29 | |||||||||||||||||
| January 25, 2024 | February 23, 2024 | March 22, 2024 | $0.29 | |||||||||||||||||
| September 28, 2023 | October 27, 2023 | November 9, 2023 | $0.26 | |||||||||||||||||
| July 6, 2023 | July 28, 2023 | August 25, 2023 | $0.26 | |||||||||||||||||
| April 27, 2023 | May 26, 2023 | June 23, 2023 | $0.26 | |||||||||||||||||
| January 25, 2023 | February 24, 2023 | March 24, 2023 | $0.26 | |||||||||||||||||
| September 15, 2022 | September 30, 2022 | October 28, 2022 | $0.23 | |||||||||||||||||
| Critical Mission Solutions | People & Places Solutions | Divergent Solutions | PA Consulting | Total | |||||||||||||||||||||||||
| Balance September 29, 2023 | $ | 2,244,985 | $ | 3,208,193 | $ | 595,712 | $ | 1,294,636 | $ | 7,343,526 | |||||||||||||||||||
| Foreign currency translation and other | 4,854 | 6,437 | 1,289 | 48,761 | 61,341 | ||||||||||||||||||||||||
| Balance June 28, 2024 | $ | 2,249,839 | $ | 3,214,630 | $ | 597,001 | $ | 1,343,397 | $ | 7,404,867 | |||||||||||||||||||
| Customer Relationships, Contracts and Backlog | Developed Technology | Trade Names | Total | ||||||||||||||||||||
| Balance September 29, 2023 | $ | 1,022,401 | $ | 74,791 | $ | 174,751 | $ | 1,271,943 | |||||||||||||||
| Amortization | (134,635) | (11,920) | (9,737) | (156,292) | |||||||||||||||||||
| Acquired | — | — | 14,000 | 14,000 | |||||||||||||||||||
| Foreign currency translation and other | 20,505 | 200 | 6,221 | 26,926 | |||||||||||||||||||
| Balance June 28, 2024 | $ | 908,271 | $ | 63,071 | $ | 185,235 | $ | 1,156,577 | |||||||||||||||
| Fiscal Year | (in millions) | |||||||
| 2024 | $ | 52.6 | ||||||
| 2025 | 210.0 | |||||||
| 2026 | 187.0 | |||||||
| 2027 | 154.6 | |||||||
| 2028 | 143.7 | |||||||
| Thereafter | 408.7 | |||||||
| Total | $ | 1,156.6 | ||||||
| June 28, 2024 | September 29, 2023 | ||||||||||
| Components of receivables and contract assets: | |||||||||||
| Amounts billed, net | $ | 1,597,830 | $ | 1,457,333 | |||||||
| Unbilled receivables and other | 1,434,073 | 1,442,486 | |||||||||
| Contract assets | 742,324 | 658,987 | |||||||||
| Total receivables and contract assets, net | $ | 3,774,227 | $ | 3,558,806 | |||||||
| Other information about receivables: | |||||||||||
| Amounts due from the United States federal government, included above, net of contract liabilities | $ | 806,068 | $ | 802,566 | |||||||
| Change in Net Pension Obligation | Foreign Currency Translation Adjustment (1) | Gain/(Loss) on Cash Flow Hedges (2) | Total | ||||||||||||||||||||
Balance at September 29, 2023 | $ | (325,692) | $ | (635,937) | $ | 103,675 | $ | (857,954) | |||||||||||||||
| Other comprehensive (loss) income | (5,621) | 78,985 | 6,964 | 80,328 | |||||||||||||||||||
| Reclassifications from accumulated other comprehensive income (loss) | — | — | (28,789) | (28,789) | |||||||||||||||||||
Balance at June 28, 2024 | $ | (331,313) | $ | (556,952) | $ | 81,850 | $ | (806,415) | |||||||||||||||
The Company’s effective tax rates from continuing operations for the three months ended June 28, 2024 and June 30, 2023 were 30.0% and 23.9%, respectively. The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21% and the Company's effective tax rate for the three-month period ended June 28, 2024 were U.S. state income tax expense of $4.4 million and U.S. tax on foreign earnings of $10.5 million, and income tax expense of $10.6 million related to foreign exchange gains associated with a change in assertion on intercompany loans that were previously deemed indefinitely reinvested. The U.S. state income tax and U.S. tax on foreign earnings are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year. These expense items were partly offset by a return-to-provision income tax benefit of $7.9 million, mainly attributable to additional research and development credits claimed on the U.S. federal tax return. For the three months ended June 30, 2023, the main differences compared to the U.S. federal statutory rate were attributable to U.S. state income tax expense of $5.3 million and U.S. tax on foreign earnings of $5.4 million, partly offset by a $3.5 million tax benefit for the release of previously valued foreign tax credits. | ||
The Company's effective tax rates from continuing operations for the nine months ended June 28, 2024 and June 30, 2023 were 18.7% and 18.2%, respectively. The most significant item contributing to the difference between the statutory U.S. federal corporate tax rate of 21% and the Company’s effective tax rate for the nine-month period ended June 28, 2024 is related to a discrete event associated with the election to treat an Australian subsidiary as a corporation versus a partnership for U.S. tax purposes, with this election resulting in the derecognition of a deferred tax liability and yielding a discrete income tax benefit of $61.6 million as the Company asserts that a component of the investment will be indefinitely reinvested. This benefit was partly offset by U.S. state income tax expense of $11.7 million, U.S. tax on foreign earnings of $19.1 million, and income tax expense of $10.6 million related to foreign exchange gains associated with a change in assertion on intercompany loans that were previously deemed indefinitely reinvested. The U.S. state income tax and U.S. tax on foreign earnings are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year. For the nine months ended June 30, 2023, the main differences compared to the U.S. federal statutory rate were associated with net tax benefits of $39.4 million which were mostly related to uncertain tax positions in the U.S. that were effectively settled, of which $30.8 million related to positions carried forward from the fiscal 2018 acquisition of CH2M Hill Companies Ltd., as well as a tax benefit of $12.1 million for the release of previously valued foreign tax credits. These benefits were partly offset by U.S. state income tax expense of $15.8 million and U.S. tax on foreign earnings of $13.6 million. | ||
In December 2021, the Organization for Economic Cooperation and Development ("OECD") released the Pillar Two Model Rules (also referred to as the global minimum tax or Global Anti-Base Erosion "GloBE" rules), which were designed to ensure large multinational enterprises pay a minimum 15 percent level of tax on the income arising in each jurisdiction in which they operate. Several jurisdictions in which we operate have enacted these rules, which are effective for the first quarter of the fiscal year ending September 26, 2025. The Company is continually monitoring developments and evaluating the potential impacts. At this time, the Company does not anticipate a material tax charge as a result of implementation of these rules. | ||
The amount of income taxes the Company pays is subject to ongoing audits by tax jurisdictions around the world. In the normal course of business, the Company is subject to examination by tax authorities throughout the world, including such major jurisdictions as Australia, Canada, India, the Netherlands, the United Kingdom and the United States. Our estimate of the potential outcome of any uncertain tax issue is subject to our assessment of the relevant risks, facts, and circumstances existing at the time. The Company believes that it has adequately provided for reasonably foreseeable outcomes related to these matters. However, future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, which may impact our effective tax rate. | ||
| Interest Rate | Maturity | June 28, 2024 | September 29, 2023 | ||||||||||||||||||||
| Revolving Credit Facility | Benchmark + applicable margin (1) (2) | February 2028 | $ | 61,121 | $ | 10,000 | |||||||||||||||||
| 2021 Term Loan Facility - USD Portion | Benchmark + applicable margin (1) (3) | February 2026 | 120,000 | 120,000 | |||||||||||||||||||
| 2021 Term Loan Facility - GBP Portion | Benchmark + applicable margin (1) (3) | September 2025 | 822,705 | 794,170 | |||||||||||||||||||
| 2020 Term Loan Facility | Benchmark + applicable margin (1) (4) | March 2025 (6) | 824,060 | 854,246 | |||||||||||||||||||
| Fixed-rate: | |||||||||||||||||||||||
5.9% Bonds, due 2033 | 5.9% (5) | March 2033 | 500,000 | 500,000 | |||||||||||||||||||
6.35% Bonds, due 2028 | 6.35% | August 2028 | 600,000 | 600,000 | |||||||||||||||||||
| Less: Current Portion (6) | (824,060) | (51,773) | |||||||||||||||||||||
| Less: Deferred Financing Fees | (12,370) | (13,172) | |||||||||||||||||||||
| Total Long-term debt, net | $ | 2,091,456 | $ | 2,813,471 | |||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | |||||||||||||||||||||||
| Lease expense | ||||||||||||||||||||||||||
| Operating lease expense | $ | 33,556 | $ | 35,632 | $ | 101,748 | $ | 106,453 | ||||||||||||||||||
| Variable lease expense | 9,505 | 9,212 | 28,641 | 27,973 | ||||||||||||||||||||||
| Sublease income | (4,919) | (4,562) | (14,387) | (13,382) | ||||||||||||||||||||||
| Total lease expense | $ | 38,142 | $ | 40,282 | $ | 116,002 | $ | 121,044 | ||||||||||||||||||
| Nine Months Ended | ||||||||||||||
| June 28, 2024 | June 30, 2023 | |||||||||||||
| Cash paid for amounts included in the measurements of lease liabilities | $ | 136,805 | $ | 138,213 | ||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 41,915 | $ | 57,441 | ||||||||||
| Weighted average remaining lease term - operating leases | 5.5 years | 6.0 years | ||||||||||||
| Weighted average discount rate - operating leases | 3.5% | 3.1% | ||||||||||||
| Fiscal Year | Operating Leases | |||||||
| 2024 | $ | 46,501 | ||||||
| 2025 | 155,373 | |||||||
| 2026 | 130,330 | |||||||
| 2027 | 106,258 | |||||||
| 2028 | 86,583 | |||||||
| Thereafter | 168,477 | |||||||
| 693,523 | ||||||||
| Less Interest | (63,603) | |||||||
| $ | 629,921 | |||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Component: | |||||||||||||||||||||||
| Service cost | $ | 2,261 | $ | 1,748 | $ | 6,783 | $ | 5,244 | |||||||||||||||
| Interest cost | 21,560 | 20,233 | 64,680 | 60,699 | |||||||||||||||||||
| Expected return on plan assets | (23,726) | (21,091) | (71,178) | (63,273) | |||||||||||||||||||
| Amortization of previously unrecognized items | 1,949 | 1,304 | 5,847 | 3,912 | |||||||||||||||||||
| Total net periodic pension benefit expense recognized | $ | 2,044 | $ | 2,194 | $ | 6,132 | $ | 6,582 | |||||||||||||||
Cash contributions made during the first nine months of fiscal 2024 | $ | 14,623 | |||
Cash contributions projected for the remainder of fiscal 2024 | 4,658 | ||||
| Total | $ | 19,281 | |||
| Balance at September 29, 2023 | $ | 632,979 | |||
| Accrued Preferred Dividend to Preference Shareholders | 61,661 | ||||
| Attribution of Preferred Dividend to Common Shareholders | (61,661) | ||||
| Net earnings attributable to redeemable noncontrolling interests to Common Shareholders | 10,112 | ||||
| Redeemable Noncontrolling interests redemption value adjustment | 99,358 | ||||
| Repurchase of redeemable noncontrolling interests | (46,173) | ||||
| Issuance of redeemable noncontrolling interests | 22,586 | ||||
| Cumulative translation adjustment and other | 15,603 | ||||
| Balance at June 28, 2024 | $ | 734,465 | |||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Critical Mission Solutions | $ | 5,801 | $ | (1,128) | $ | 12,702 | $ | 2,136 | |||||||||||||||
| People & Places Solutions | 11,415 | 703 | 25,199 | 33,889 | |||||||||||||||||||
| Divergent Solutions | 2,348 | 100 | 4,075 | 5,312 | |||||||||||||||||||
| PA Consulting | 3,201 | 17,128 | 7,360 | 17,128 | |||||||||||||||||||
| Corporate | 35,323 | 14,109 | 92,049 | 19,731 | |||||||||||||||||||
| Total | $ | 58,088 | $ | 30,912 | $ | 141,385 | $ | 78,196 | |||||||||||||||
| Amounts included in: | |||||||||||||||||||||||
Operating profit (mainly SG&A) (1) | $ | 58,088 | $ | 31,184 | $ | 141,385 | $ | 79,129 | |||||||||||||||
| Other Income, net | — | (272) | — | (933) | |||||||||||||||||||
| $ | 58,088 | $ | 30,912 | $ | 141,385 | $ | 78,196 | ||||||||||||||||
Balance at September 29, 2023 | $ | 37,318 | |||
Net Charges (Credits) (1) | 141,336 | ||||
| Payments and other | (114,859) | ||||
| Balance at June 28, 2024 | $ | 63,795 | |||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Lease Abandonments and Impairments | $ | — | $ | 803 | $ | 49 | $ | 38,076 | |||||||||||||||
| Terminations | 25,494 | 17,925 | 49,045 | 26,434 | |||||||||||||||||||
Outside Services (1) | 26,793 | 12,168 | 73,859 | 13,646 | |||||||||||||||||||
Other (2) | 5,801 | 16 | 18,432 | 40 | |||||||||||||||||||
| Total | $ | 58,088 | $ | 30,912 | $ | 141,385 | $ | 78,196 | |||||||||||||||
| Lease Abandonments and Impairments | $ | 432,773 | |||
| Terminations | 217,361 | ||||
| Outside Services | 419,549 | ||||
| Other | 214,366 | ||||
| Total | $ | 1,284,049 | |||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenues from External Customers: | |||||||||||||||||||||||
| Critical Mission Solutions | $ | 1,155,806 | $ | 1,190,845 | $ | 3,513,635 | $ | 3,457,076 | |||||||||||||||
| People & Places Solutions | 2,564,698 | 2,469,694 | 7,556,999 | 7,041,744 | |||||||||||||||||||
| Divergent Solutions | 222,805 | 239,289 | 701,025 | 694,978 | |||||||||||||||||||
| PA Consulting | 288,271 | 286,874 | 888,239 | 869,904 | |||||||||||||||||||
| Total | $ | 4,231,580 | $ | 4,186,702 | $ | 12,659,898 | $ | 12,063,702 | |||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Segment Operating Profit: | |||||||||||||||||||||||
| Critical Mission Solutions | $ | 100,318 | $ | 99,141 | $ | 297,373 | $ | 275,304 | |||||||||||||||
| People & Places Solutions | 271,157 | 242,673 | 763,919 | 701,498 | |||||||||||||||||||
Divergent Solutions (1) | 12,394 | 20,794 | 38,951 | 57,623 | |||||||||||||||||||
| PA Consulting | 62,889 | 60,864 | 177,513 | 177,521 | |||||||||||||||||||
| Total Segment Operating Profit | 446,758 | 423,472 | 1,277,756 | 1,211,946 | |||||||||||||||||||
Other Corporate Expenses (2) | (118,040) | (118,486) | (356,413) | (319,796) | |||||||||||||||||||
Restructuring, Transaction and Other Charges (3) | (68,254) | (35,245) | (175,827) | (94,742) | |||||||||||||||||||
| Total U.S. GAAP Operating Profit | 260,464 | 269,741 | 745,516 | 797,408 | |||||||||||||||||||
Total Other Expense, net | (34,314) | (43,056) | (112,030) | (120,930) | |||||||||||||||||||
| Earnings from Continuing Operations Before Taxes | $ | 226,150 | $ | 226,685 | $ | 633,486 | $ | 676,478 | |||||||||||||||
| (1) | For the nine months ended June 28, 2024, operating profit included an approximate $15 million pre-tax non-cash charge associated with an inventory write down during the fiscal 2024 period comprised of cumulative adjustments of immaterial inventory misstatements previously reported which would not have been material to any prior period financial statements nor to any amounts reported in the current period. | ||||
| (2) | Other corporate expenses included intangibles amortization of $52.5 million and $52.0 million for the three months ended June 28, 2024 and June 30, 2023, respectively, and $156.3 million and $152.2 million for the nine months ended June 28, 2024 and June 30, 2023, respectively, along with an approximately $11.0 million intangibles impairment charge in the nine month period ended June 28, 2024. Additionally, the comparison of the nine month period of fiscal 2024 to the corresponding 2023 period was unfavorably impacted by the one-time net favorable impact of $41 million relating mainly to changes in employee benefits programs in the prior year, partly offset by year over year favorable department spending as well as favorable impacts of corporate functional overhead cost recovery by our lines of business. | ||||
| (3) | The three and nine months ended June 28, 2024 included $54.8 million and $133.9 million, respectively, in restructuring and other charges and $7.1 million and $26.5 million, respectively, of transaction charges, mainly relating to the Separation Transaction (primarily professional services and employee separation costs). The three and nine months ended June 30, 2023 included $17.2 million in restructuring and other charges relating to the Company's investment in PA Consulting (primarily employee separation costs) and $13.4 million relating to the separation activities (mainly professional services) around the Separation Transaction, and the nine months ended June 30, 2023 included $38.1 million in real estate impairment charges related to the Company's transformation initiatives. | ||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenues | $ | 4,231,580 | $ | 4,186,702 | $ | 12,659,898 | $ | 12,063,702 | |||||||||||||||
| Direct cost of contracts | (3,314,800) | (3,329,959) | (9,987,965) | (9,501,953) | |||||||||||||||||||
| Gross profit | 916,780 | 856,743 | 2,671,933 | 2,561,749 | |||||||||||||||||||
| Selling, general and administrative expenses | (656,316) | (587,002) | (1,926,417) | (1,764,341) | |||||||||||||||||||
| Operating Profit | 260,464 | 269,741 | 745,516 | 797,408 | |||||||||||||||||||
| Other Income (Expense): | |||||||||||||||||||||||
| Interest income | 10,321 | 7,830 | 27,960 | 18,467 | |||||||||||||||||||
| Interest expense | (45,801) | (43,787) | (133,385) | (124,477) | |||||||||||||||||||
| Miscellaneous income (expense), net | 1,166 | (7,099) | (6,605) | (14,920) | |||||||||||||||||||
| Total other expense, net | (34,314) | (43,056) | (112,030) | (120,930) | |||||||||||||||||||
| Earnings from Continuing Operations Before Taxes | 226,150 | 226,685 | 633,486 | 676,478 | |||||||||||||||||||
| Income Tax Expense from Continuing Operations | (67,739) | (54,166) | (118,743) | (123,329) | |||||||||||||||||||
| Net Earnings of the Group from Continuing Operations | 158,411 | 172,519 | 514,743 | 553,149 | |||||||||||||||||||
| Net Earnings (Loss) of the Group from Discontinued Operations | 485 | 294 | (857) | (489) | |||||||||||||||||||
| Net Earnings of the Group | 158,896 | 172,813 | 513,886 | 552,660 | |||||||||||||||||||
| Net Earnings Attributable to Noncontrolling Interests from Continuing Operations | (8,551) | (8,204) | (23,117) | (23,038) | |||||||||||||||||||
| Net Earnings Attributable to Redeemable Noncontrolling interests | (3,411) | (370) | (10,112) | (13,225) | |||||||||||||||||||
| Net Earnings Attributable to Jacobs from Continuing Operations | 146,449 | 163,945 | 481,514 | 516,886 | |||||||||||||||||||
| Net Earnings Attributable to Jacobs | $ | 146,934 | $ | 164,239 | $ | 480,657 | $ | 516,397 | |||||||||||||||
| Net Earnings Per Share: | |||||||||||||||||||||||
| Basic Net Earnings from Continuing Operations Per Share | $ | 1.17 | $ | 1.29 | $ | 3.85 | $ | 4.08 | |||||||||||||||
| Basic Net Loss from Discontinued Operations Per Share | $ | — | $ | — | $ | (0.01) | $ | — | |||||||||||||||
| Basic Earnings Per Share | $ | 1.17 | $ | 1.30 | $ | 3.84 | $ | 4.07 | |||||||||||||||
| Diluted Net Earnings from Continuing Operations Per Share | $ | 1.17 | $ | 1.29 | $ | 3.83 | $ | 4.06 | |||||||||||||||
| Diluted Net Loss from Discontinued Operations Per Share | $ | — | $ | — | $ | (0.01) | $ | — | |||||||||||||||
| Diluted Earnings Per Share | $ | 1.17 | $ | 1.29 | $ | 3.82 | $ | 4.06 | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
Revenues from External Customers: | |||||||||||||||||||||||
| Critical Mission Solutions | $ | 1,155,806 | $ | 1,190,845 | $ | 3,513,635 | $ | 3,457,076 | |||||||||||||||
| People & Places Solutions | 2,564,698 | 2,469,694 | 7,556,999 | 7,041,744 | |||||||||||||||||||
| Divergent Solutions | 222,805 | 239,289 | 701,025 | 694,978 | |||||||||||||||||||
| PA Consulting | 288,271 | 286,874 | 888,239 | 869,904 | |||||||||||||||||||
| Total | $ | 4,231,580 | $ | 4,186,702 | $ | 12,659,898 | $ | 12,063,702 | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Segment Operating Profit: | |||||||||||||||||||||||
| Critical Mission Solutions | $ | 100,318 | $ | 99,141 | $ | 297,373 | $ | 275,304 | |||||||||||||||
| People & Places Solutions | 271,157 | 242,673 | 763,919 | 701,498 | |||||||||||||||||||
| Divergent Solutions (1) | 12,394 | 20,794 | 38,951 | 57,623 | |||||||||||||||||||
| PA Consulting | 62,889 | 60,864 | 177,513 | 177,521 | |||||||||||||||||||
| Total Segment Operating Profit | 446,758 | 423,472 | 1,277,756 | 1,211,946 | |||||||||||||||||||
| Other Corporate Expenses (2) | (118,040) | (118,486) | (356,413) | (319,796) | |||||||||||||||||||
| Restructuring, Transaction and Other Charges (3) | (68,254) | (35,245) | (175,827) | (94,742) | |||||||||||||||||||
| Total U.S. GAAP Operating Profit | 260,464 | 269,741 | 745,516 | 797,408 | |||||||||||||||||||
| Total Other Expense, net | (34,314) | (43,056) | (112,030) | (120,930) | |||||||||||||||||||
Earnings Before Taxes from Continuing Operations | $ | 226,150 | $ | 226,685 | $ | 633,486 | $ | 676,478 | |||||||||||||||
| (1) | For the nine months ended June 28, 2024, operating profit included an approximate $15 million pre-tax non-cash charge associated with an inventory write down during the fiscal 2024 period comprised of cumulative adjustments of immaterial inventory misstatements previously reported which would not have been material to any prior period financial statements nor to any amounts reported in the current period. | ||||
| (2) | Other corporate expenses included intangibles amortization of $52.5 million and $52.0 million for the three months ended June 28, 2024 and June 30, 2023, respectively, and $156.3 million and $152.2 million for the nine months ended June 28, 2024 and June 30, 2023, respectively, along with an approximately $11.0 million intangibles impairment charge in the nine month period ended June 28, 2024. Additionally, the comparison of the nine month period of fiscal 2024 to the corresponding 2023 period was unfavorably impacted by the one-time net favorable impact of $41 million relating mainly to changes in employee benefits programs in the prior year, partly offset by year over year favorable department spending as well as favorable impacts of corporate functional overhead cost recovery by our lines of business. | ||||
| (3) | The three and nine months ended June 28, 2024 included $54.8 million and $133.9 million, respectively, in restructuring and other charges and $7.1 million and $26.5 million, respectively, of transaction charges, mainly relating to the Separation Transaction (primarily professional services and employee separation costs). The three and nine months ended June 30, 2023 included $17.2 million in restructuring and other charges relating to the Company's investment in PA Consulting (primarily employee separation costs) and $13.4 million relating to the separation activities (mainly professional services) around the Separation Transaction, and the nine months ended June 30, 2023 included $38.1 million in real estate impairment charges related to the Company's transformation initiatives. | ||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenue | $ | 1,155,806 | $ | 1,190,845 | $ | 3,513,635 | $ | 3,457,076 | |||||||||||||||
| Operating Profit | $ | 100,318 | $ | 99,141 | $ | 297,373 | $ | 275,304 | |||||||||||||||
Critical Mission Solutions segment revenues for the three and nine months ended June 28, 2024 were $1.16 billion and $3.51 billion respectively, a decrease of $35.0 million or 2.9% and increase of $56.6 million, or 1.6%, year-to-date, from reported amounts of $1.19 billion and $3.46 billion for the corresponding periods last year. During the three months ended June 28, 2024, the decrease is due to contracts in the defense market that completed and were not renewed. For the nine months ended June 28, 2024, this was offset by benefits from increased volume in the nuclear remediation and energy sectors in the United Kingdom as well as strong performance from large U.S. Government client programs. Foreign currency translation had approximately $1.3 million and $23.9 million in favorable impacts on revenues for the three and nine months ended June 28, 2024, respectively, compared to $2.9 million and $61.5 million in unfavorable impacts in the corresponding prior year periods. | ||
Operating profit for the segment was $100.3 million and $297.4 million, respectively, for the three and nine months ended June 28, 2024, which was an increase of $1.2 million and $22.1 million, or 1.2% and 8.0%, from $99.1 million and $275.3 million compared to the corresponding periods in the prior year. Operating profit level and margin trends for the year-over-year periods were favorably impacted by increased profitability in the United Kingdom and U.S. nuclear remediation and energy markets. Foreign currency translation had approximately $0.1 million and $3.2 million in favorable impacts on operating profit for the three and nine months ended June 28, 2024, as compared to $0.2 million and $7.4 million in unfavorable impacts in the corresponding prior year periods. | ||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenue | $ | 2,564,698 | $ | 2,469,694 | $ | 7,556,999 | $ | 7,041,744 | |||||||||||||||
| Operating Profit | $ | 271,157 | $ | 242,673 | $ | 763,919 | $ | 701,498 | |||||||||||||||
Revenues for the People & Places Solutions segment for the three and nine months ended June 28, 2024 was $2.56 billion and $7.56 billion, respectively, an increase of $95.0 million and $515.3 million, or 3.8% and 7.3%, from reported amounts of $2.47 billion and $7.04 billion for the corresponding periods last year. The increase in revenue for the three and nine months ended June 28, 2024 was driven by net revenue growth across all sectors, particularly in water, life sciences and energy. Foreign currency translation had approximately $3.1 million in unfavorable and $26.5 million in favorable impacts on revenues for the three and nine months ended June 28, 2024, as compared to $10.1 million and $144.6 million in unfavorable impacts in the corresponding prior year periods. | ||
Operating profit for the People & Places Solutions segment for the three and nine month period ended June 28, 2024 was $271.2 million and $763.9 million, respectively, an increase of $28.5 million and $62.4 million, or 11.7% and 8.9%, from $242.7 million and $701.5 million for the corresponding period last year. The increase in the three and nine month periods is a result of higher year over year segment revenues mentioned above with partially offsetting impacts from higher corporate cost allocations versus the prior year period. Further, operating profit in the three month period benefited from the non-cash reversal of certain accruals associated with a client program completed in a prior year, which benefit was largely offset by the unfavorable discrete impacts of higher than usual year over year medical and other benefit costs during the quarter. The net impact of these adjustments was immaterial in the three and nine month periods presented. Foreign currency translation had approximately $0.7 million in unfavorable and $4.7 million in favorable impacts on operating profit for the three and nine months ended June 28, 2024, as compared to $3.4 million and $28.7 million in unfavorable impacts in the corresponding prior year periods. | ||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenue | $ | 222,805 | $ | 239,289 | $ | 701,025 | $ | 694,978 | |||||||||||||||
| Operating Profit | $ | 12,394 | $ | 20,794 | $ | 38,951 | $ | 57,623 | |||||||||||||||
Revenues for the Divergent Solutions segment for the three and nine months ended June 28, 2024 were $222.8 million and $701.0 million, respectively, a decrease of $16.5 million, or 6.9%, and increase of $6.0 million, or 0.9%, from $239.3 million and $695.0 million for the corresponding periods last year. The decrease in revenue for the three months ended June 28, 2024 was mainly due to a National Government program ending. The nine month increase is due to startup of new programs previously won in fiscal 2023. Foreign currency translation did not have a material impact on revenue in our Divergent Solutions segment for either period presented. | ||
Operating profit for the segment was $12.4 million and $39.0 million, for the three and nine months ended June 28, 2024, respectively, a decrease of $8.4 million and $18.7 million, or 40.4% and 32.4%, from $20.8 million and $57.6 million for the corresponding periods last year. In addition to revenue declines as mentioned above, the three month decrease is driven by unfavorable impacts of changes in overhead billing rates during the current year quarter of 2024 vs. the prior year quarter mainly in our Cyber & Intelligence business. Additionally, operating profit for the nine month period reflected mostly consistent underlying performance in the Cyber & Intelligence business unit and the new programs previously won in fiscal 2023, although substantially offset by an approximate one-time $15 million pre-tax non-cash charge associated with an inventory write down during the fiscal 2024 period. Foreign currency translation had an immaterial impact on operating profit in our Divergent Solutions segment for both periods presented. | ||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| June 28, 2024 | June 30, 2023 | June 28, 2024 | June 30, 2023 | ||||||||||||||||||||
| Revenue | $ | 288,271 | $ | 286,874 | $ | 888,239 | $ | 869,904 | |||||||||||||||
| Operating Profit | $ | 62,889 | $ | 60,864 | $ | 177,513 | $ | 177,521 | |||||||||||||||
Revenues for the PA Consulting segment for the three and nine months ended June 28, 2024 were $288.3 million and $888.2 million, respectively, a change of $1.4 million and $18.3 million, or 0.5% and 2.1%, from $286.9 million and $869.9 million in the corresponding periods last year. The nine month change is primarily due to growth in PA Consulting's Public Sector work. Foreign currency translation had approximately $31.4 million in favorable impacts on revenues for the nine months ended June 28, 2024, respectively, as compared to $71.7 million in unfavorable impacts in the corresponding prior year period. | ||
Operating profit for the segment for the three and nine months ended June 28, 2024 was $62.9 million and $177.5 million, respectively, an increase of $2.0 million, or 3.3%, and flat, from $60.9 million and $177.5 million in the corresponding periods last year. The year-on-year improvement in the quarter is due mainly to the higher revenues noted above along with benefits from cost reduction programs while the nine month periods showed consistent performance levels. | ||
| June 28, 2024 | June 30, 2023 | ||||||||||
| Critical Mission Solutions | $ | 8,450 | $ | 8,097 | |||||||
| People & Places Solutions | 19,277 | 17,498 | |||||||||
| Divergent Solutions | 2,521 | 2,965 | |||||||||
| PA Consulting | 369 | 355 | |||||||||
| Total | $ | 30,617 | $ | 28,915 | |||||||
The increase in backlog in Critical Mission Solutions from June 30, 2023 was primarily driven by growth and increased funding levels in the United Kingdom and U.S. nuclear remediation markets along with growth in the U.K. defense sector and U.S. Telecom market that offset slower growth in the U.S. Defense sector. | ||
The increase in backlog in People & Places Solutions from June 30, 2023 was predominantly driven by growth in the Life Sciences and Water markets. | ||
The decrease in backlog in Divergent Solutions (DVS) from June 30, 2023 was due to a major National Government program ending earlier than expected. | ||
The increase in backlog in PA Consulting from June 30, 2023 was primarily driven by organic year-over-year growth of the business. | ||
| Nine Months Ended | |||||
| (in thousands) | June 28, 2024 | ||||
| Summarized Statement of Earnings Data | |||||
| Revenue | $ | 2,863,700 | |||
| Direct Costs | $ | 2,389,688 | |||
| Selling, General and Administrative Expenses | $ | 436,460 | |||
| Net loss attributable to Guarantor Subsidiaries from continuing operations | $ | (75,784) | |||
| Noncontrolling interests | $ | (640) | |||
| (in thousands) | June 28, 2024 | September 29, 2023 | |||||||||
| Summarized Balance Sheet Data | |||||||||||
| Current assets, less receivables from Non-Guarantor Subsidiaries | $ | 1,143,211 | $ | 693,037 | |||||||
| Current receivables from Non-Guarantor Subsidiaries | $ | — | $ | — | |||||||
| Noncurrent assets, less noncurrent receivables from Non-Guarantor Subsidiaries | $ | 511,141 | $ | 459,276 | |||||||
| Noncurrent receivables from Non-Guarantor Subsidiaries | $ | 582,222 | $ | 610,900 | |||||||
| Current liabilities | $ | 1,309,033 | $ | 616,140 | |||||||
| Current liabilities to Non-Guarantor Subsidiaries | $ | 1,074,744 | $ | 387,461 | |||||||
| Long-term Debt | $ | 2,030,395 | $ | 2,561,590 | |||||||
| Other Noncurrent liabilities, less amounts payable to Non-Guarantor Subsidiaries | $ | 240,927 | $ | 248,852 | |||||||
| Noncurrent liabilities to Non-Guarantor Subsidiaries | $ | 704,007 | $ | 343,674 | |||||||
| Noncontrolling interests | $ | 864 | $ | 577 | |||||||
| Accumulated deficit | $ | (3,123,396) | $ | (2,395,081) | |||||||
| Period | Total Number of Shares Purchased | Average Price Per Share (1) | Total Number of Shares Purchased under the 2023 Repurchase Authorization | Approximate Dollar Value of Shares that May Yet Be Purchased Under the 2023 Repurchase Authorization | ||||||||||||||||||||||
| March 31, 2024 - April 27, 2024 | 36,600 | $153.01 | 36,600 | $673,772,243 | ||||||||||||||||||||||
| April 28, 2024 - May 25, 2024 | 122,800 | $137.17 | 122,800 | $656,928,170 | ||||||||||||||||||||||
| May 26, 2024 - June 29, 2024 | 915,363 | $140.35 | 915,363 | $528,452,610 | ||||||||||||||||||||||
| 3.1 | |||||
3.2 | |||||
3.3 | |||||
| 10.1* | |||||
| 10.2* | |||||
22.1* | |||||
31.1* | |||||
31.2* | |||||
32.1* | |||||
32.2* | |||||
| 101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2024, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Earnings, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Stockholders’ Equity, (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | ||||
| 104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2024, (formatted as Inline XBRL and contained in Exhibit 101). | ||||
| By: | /s/ Venk Nathamuni | ||||
| Venk Nathamuni | |||||
Chief Financial Officer | |||||
| (Principal Financial Officer) | |||||
| Date: | August 6, 2024 | ||||
| Name of Subsidiary | Jurisdiction of Incorporation | Guaranteed Securities | ||||||
| Jacobs Engineering Group Inc. | Delaware | 5.90% Bonds due 2033 6.35% Bonds due 2028 | ||||||
| /s/ Bob Pragada | ||
| Bob Pragada | ||
| Chief Executive Officer | ||
| August 6, 2024 | ||
| /s/ Venk Nathamuni | ||
| Venk Nathamuni | ||
| Chief Financial Officer | ||
| August 6, 2024 | ||
| /s/Bob Pragada | ||
| Bob Pragada | ||
| Chief Executive Officer | ||
| August 6, 2024 | ||
| /s/ Venk Nathamuni | ||
| Venk Nathamuni | ||
| Chief Financial Officer | ||
| August 6, 2024 | ||