v3.26.1
Segment Information
 6 Months Ended
Mar. 27, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company's two operating segments are comprised of Infrastructure and Advanced Facilities ("I&AF") and its majority investment in PA Consulting. Subsequent to the Separation Transaction, the SpinCo businesses are now presented as discontinued operations for all periods and therefore not reflected in the segment disclosures below. For further information, refer to Note 14- Discontinued Operations.
The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”) and evaluates the performance of and makes appropriate resource allocations to each of the segments. For purposes of the Company’s goodwill impairment testing, it has been determined that the Company’s operating segments are also its reporting units based on management’s conclusion that the components comprising each of its operating segments share similar economic characteristics and meet the aggregation criteria for reporting units in accordance with ASC 350, Intangibles-Goodwill and Other.
Financial information for each segment is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. The CODM evaluates the operating performance of our operating segments using segment operating profit. The Company incurs certain SG&A that relate to its business as a whole which are not allocated to the segments. The CODM does not review segment assets as a measure of segment performance.
The following tables present total revenues, direct cost of contracts, selling, general and administrative expenses and segment operating profit from continuing operations for each reportable segment (in thousands) and includes a reconciliation of segment operating profit to total U.S. GAAP operating profit by including certain corporate-level expenses, Restructuring and other charges (as defined in Note 16- Restructuring and Other Charges) and transaction and integration costs (in thousands) for the three and six months ended:
For the three months endedFor the six months ended
March 27, 2026March 27, 2026
Infrastructure & Advanced FacilitiesPA ConsultingTotalInfrastructure & Advanced FacilitiesPA ConsultingTotal
Revenues from External Customers (1)
$3,336,307 $358,574 $3,694,881 $6,275,155 $713,007 $6,988,162 
Direct cost of contracts (2)
(2,666,239)(233,749)(2,899,988)(4,959,401)(468,618)(5,428,019)
Selling, general and administrative expenses (2)
(444,845)(44,961)(489,806)(875,789)(79,633)(955,422)
Segment Operating Profit (1)
$225,223 $79,864 $305,087 $439,965 $164,756 $604,721 
Restructuring, Transaction and Other Charges (3)
(352,200)(381,277)
Amortization of Intangible Assets(34,063)(72,059)
Total U.S. GAAP Operating Profit$(81,176)$151,385 
Total Other (Expense) Income, net (4)
(49,430)(75,769)
Earnings from Continuing Operations Before Taxes$(130,606)$75,616 
(1)
The three and six months ended March 27, 2026 I&AF revenue and operating profit in comparison to the corresponding periods for fiscal 2025 reflected lower charges in connection with the Consolidated JV Matter (as defined below).
(2)Direct cost of contracts and SG&A are considered to be significant segment expense categories as amounts align with, or are easily computable from, the segment-level information regularly provided to the CODM.
(3)
The three and six months ended March 27, 2026 included $214.9 million and $237.5 million, respectively, in charges for certain subsidiary level compensation based agreements as well as $120.4 million and $122.7 million, respectively, in costs relating to the PA Consulting Transaction, $123.9 million of which represents consideration to be distributed to PA Consulting employees as compensation expense. The three and six months ended March 27, 2026 included $7.6 million and $9.9 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $6.5 million and $8.3 million, respectively, in restructuring and other charges relating to the PA Consulting Transaction (primarily professional services and dedicated internal personnel).
(4)
The three and six months ended March 27, 2026 included a $20.5 million loss on the foreign exchange forward contract in connection with the PA Consulting Transaction (see Note 17- Commitments and Contingencies and Derivative Financial Instruments).
For the Three Months EndedFor the six months ended
March 28, 2025March 28, 2025
Infrastructure & Advanced FacilitiesPA ConsultingTotalInfrastructure & Advanced FacilitiesPA ConsultingTotal
Revenues from External Customers (1)
$2,602,753 $307,662 $2,910,415 $5,228,961 $614,410 $5,843,371 
Direct cost of contracts (2)
(1,980,582)(191,488)(2,172,070)(4,000,277)(383,482)(4,383,759)
Selling, general and administrative expenses (2)
(418,906)(48,827)(467,733)(815,145)(96,844)(911,989)
Segment Operating Profit (1)
$203,265 $67,347 $270,612 $413,539 $134,084 $547,623 
Restructuring, Transaction and Other Charges (3)
(23,924)(53,856)
Amortization of Intangible Assets(38,040)(76,701)
Total U.S. GAAP Operating Profit$208,648 $417,066 
Total Other (Expense) Income, net (4)
(152,825)(308,095)
Earnings from Continuing Operations Before Taxes$55,823 $108,971 
(1)
The three and six months ended March 28, 2025 I&AF revenue and operating profit were impacted by a reserve in connection with an unfavorable interim ruling against a consolidated joint venture in which the Company holds a 50% interest (the "Consolidated JV Matter"), with the noncontrolling partner’s share included in noncontrolling interests in the Consolidated Statements of Earnings for the respective period.
(2)Direct cost of contracts and SG&A are considered to be significant segment expense categories as amounts align with, or are easily computable from, the segment-level information regularly provided to the CODM.
(3)
The three and six months ended March 28, 2025 included $10.2 million and $25.1 million, respectively, in restructuring and other charges relating to the Separation Transaction (primarily professional services and employee separation costs), as well as $8.0 million and $13.9 million, respectively, in charges for certain subsidiary level compensation based agreements. The three and six months ended March 28, 2025 included approximately $8.4 million and $16.2 million, respectively, in charges associated with the Company's TSA with Amentum.
(4)
The three and six months ended March 28, 2025 included $109.5 million and $254.7 million, respectively, in mark-to-market losses and other related charges associated with our former investment in Amentum stock in connection with the Separation Transaction, as well as $10.3 million and $21.7 million, respectively, in income associated with the Company's TSA with Amentum (see Note 14- Discontinued Operations). The three and six months ended March 28, 2025 included $20.5 million in discounts and expenses associated with the Equity for-Debt Transaction (see Note 12- Borrowings and Note 14- Discontinued Operations).