FY2023 Separation Roadmap
Reconciliation of US GAAP Revenue to Adj. Net Revenue by Segment
45
Segment Information (in thousands):
Unaudited
Revenues from External Customers:
For the Three Months Ended
September 29,
2023
September 30,
2022
For the Years Ended
September 29,
2023
4,693,499 $
September 30,
2022
Critical Mission Solutions
$
1,236,423 $
People & Places Solutions
2,512,113
Pass Through Revenue (1)
(809,277)
People & Places Solutions Adjusted Net Revenue (1)
$
1,702,836 $
Divergent Solutions
251,936
Pass Through Revenue
(12,452)
Divergent Solutions Adjusted Net Revenue
$
239,484 $
PA Consulting
Total Revenue
Adjusted Net Revenue (1)
$
288.240 $
$
4,288,712 $
$
3,466,983 $
1,156,369 $
2,228,130
(687,405)
1,540,725 $
242,197
(9,306)
232,891 $
254,352 $
3,881,048 $
3,184,337 $
9,553,857
(2,986,643)
6,567,214 $
946,914
4,376,562
8,534,650
(2,462,691)
6,071,959
892,317
(64,470)
(29,902)
882,444 $
1,158,144 $
16,352,414 $
13,301,301 $
862,415
1,119,296
14,922,825
12,430,232
For the Three Months Ended
September 29,
2023
September 30,
2022
For the Years Ended
September 29,
2023
September 30,
2022
Segment Operating Profit:
Critical Mission Solutions
People & Places Solutions
102,897 $
256,216
81,379
229,349
$
Divergent Solutions
24,146
15,296
378,201 $
957,714
81,768
355,563
824,834
67,552
PA Consulting
59,482
49,375
237,003
232,225
Total Segment Operating Profit
442,741
375,399
1,654,686
1,480,174
Other Corporate Expenses (2)
(107,259)
(79,961)
(427,053)
(364,440)
Restructuring, Transaction and Other (Charges) Recoveries (3)
(57,654)
13,102
(152,396)
(197,884)
Total U.S. GAAP Operating Profit
277,828
308,540
1,075,237
917,850
Total Other Expense, Net (4)
(37,629)
(28,678)
(158,558)
(41,503)
Earnings Before Taxes from Continuing Operations
240,199 $
279,862 $
916,679 $
876,347
(1)
(2)
(3)
(4)
Pass-through revenues for P&PS for the prior periods presented include certain minor adjustments to properly reflect amounts that had not been previously
included and to conform with the fiscal 2023 amounts presented.
Other corporate expenses include intangibles amortization of $51.7 million for both three-month periods ended September 29, 2023 and September 30, 2022
and $203.9 million and $198.6 million for the years ended September 29, 2023 and September 30, 2022, respectively. Additionally, the year ended September
29, 2023 included approximately $15.0 million in net favorable impacts from cost reductions compared to the prior year period, which was associated mainly
with net favorable impacts during first quarter from changes in employee benefit programs of $41 million offset by approximately $26 million in higher spend in
company technology platforms and other personnel and corporate cost increases.
The three months and year ended September 29, 2023 include and $50.0 million and $63.4 million, respectively, relating to the separation activities (mainly
professional services and employee separation costs) around the CMS separation, $(2.9) million and $14.3 million, respectively, in restructuring and other
charges relating to the Company's investment in PA Consulting (primarily employee separation costs) and $10.6 million and $48.2 million, respectively, in
charges associated mainly with real estate impairments. The three months and year ended September 30, 2022 include $4.0 million and $78.3 million,
respectively, in charges associated mainly with real estate impairments. Included in the year ended September 30, 2022 is $91.3 million pre-tax related to the
final settlement of the Legacy CH2M Matter and net of previously recorded reserves and approximately $27 million in third party recoveries was recorded as
receivables reducing SG&A.
The year ended September 30, 2022 included a $13.9 million gain related to a cost method investment sold during the period and a gain of $8.7 million related
to lease terminations. The increase in net interest expense from fiscal 2022 to fiscal 2023 is due primarily to higher interest rates.
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