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Item 1. Financial Statements

2024-08-06 compared with 2024-05-07 · 169 added, 146 removed, 736 unchanged (30% of the section changed)

4 unchanged sentences

(In thousands, except share information)

March 29, 2024 September 29, 2023

June 28, 2024 September 29, 2023

Current Assets:

32 unchanged sentences

Common stock, $ 1 par value, authorized - 240,000,000 shares;

issued and outstanding - 125,216,293 shares and 125,976,998 shares as of March 29, 2024 and September 29, 2023, respectively

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

10 unchanged sentences

CONSOLIDATED STATEMENTS OF EARNINGS

Three and Six Months Ended March 29, 2024 and March 31, 2023

Three and Nine Months Ended June 28, 2024 and June 30, 2023

(In thousands, except per share information)

For the Three Months Ended For the Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

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

6 unchanged sentences

Interest expense ( 45,801 ) ( 43,787 ) ( 133,385 ) ( 124,477 )

Miscellaneous expense, net ( 4,576 ) ( 4,567 ) ( 7,771 ) ( 7,820 )

Miscellaneous income (expense), net 1,166 ( 7,099 ) ( 6,605 ) ( 14,920 )

Total other expense, net ( 34,314 ) ( 43,056 ) ( 112,030 ) ( 120,930 )

2 unchanged sentences

Net Earnings of the Group from Continuing Operations 158,411 172,519 514,743 553,149

Net Loss of the Group from Discontinued Operations ( 768 ) ( 75 ) ( 1,342 ) ( 783 )

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

14 unchanged sentences

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three and Six Months Ended March 29, 2024 and March 31, 2023

Three and Nine Months Ended June 28, 2024 and June 30, 2023

(In thousands)

For the Three Months Ended For the Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

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

3 unchanged sentences

Change in pension plan liabilities 2,245 ( 6,765 ) ( 4,214 ) ( 29,025 )

Other comprehensive (loss) income before taxes ( 28,653 ) 2,146 40,977 135,071

Other comprehensive income before taxes 4 64,361 40,983 199,432

Income Tax (Expense) Benefit:

4 unchanged sentences

4,824 1,293 10,556 3,310

Net other comprehensive (loss) income ( 29,652 ) 7,810 46,711 137,088

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

6 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Three Months Ended March 29, 2024 and March 31, 2023

For the Three Months Ended June 28, 2024 and June 30, 2023

(In thousands)

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 December 30, 2022 $ 126,669 $ 2,672,421 $ 4,230,866 $ ( 845,852 ) $ 6,184,104 $ 49,494 $ 6,233,598

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

7 unchanged sentences

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 )

1 unchanged sentence

Issuances of equity securities including shares withheld for taxes 164 12,493 ( 531 ) — 12,126 — 12,126

Balances at March 31, 2023

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 December 29, 2023 $ 125,599 $ 2,729,416 $ 4,604,850 $ ( 781,591 ) $ 6,678,274 $ 56,576 $ 6,734,850

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 — — — ( 34,872 ) ( 34,872 ) — ( 34,872 )

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

4 unchanged sentences

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 )

2 unchanged sentences

Repurchases of equity securities ( 1,073 ) ( 23,465 ) ( 126,381 ) — ( 150,919 ) — ( 150,919 )

Balances at March 29, 2024 $ 125,216 $ 2,733,758 $ 4,576,383 $ ( 811,243 ) $ 6,624,114 $ 54,348 $ 6,678,462

Balances at June 28, 2024 $ 124,254 $ 2,741,750 $ 4,557,204 $ ( 806,415 ) $ 6,616,793 $ 59,637 $ 6,676,430

See the accompanying Notes to Consolidated Financial Statements – Unaudited.

2 unchanged sentences

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

For the Six Months Ended March 29, 2024 and March 31, 2023

For the Nine Months Ended June 28, 2024 and June 30, 2023

(In thousands)

15 unchanged sentences

Repurchases of equity securities ( 2,326 ) ( 49,202 ) ( 214,041 ) — ( 265,569 ) — ( 265,569 )

Balances at March 31, 2023 $ 126,805 $ 2,697,523 $ 4,393,351 $ ( 838,042 ) $ 6,379,637 $ 48,387 $ 6,428,024

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 — — — 73,177 73,177 — 73,177

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

9 unchanged sentences

Repurchases of equity securities ( 2,502 ) ( 54,487 ) ( 289,393 ) — ( 346,382 ) — ( 346,382 )

Balances at March 29, 2024 $ 125,216 $ 2,733,758 $ 4,576,383 $ ( 811,243 ) $ 6,624,114 $ 54,348 $ 6,678,462

Balances at June 28, 2024 $ 124,254 $ 2,741,750 $ 4,557,204 $ ( 806,415 ) $ 6,616,793 $ 59,637 $ 6,676,430

See the accompanying Notes to Consolidated Financial Statements – Unaudited.

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Six Months Ended March 29, 2024 and March 31, 2023

For the Nine Months Ended June 28, 2024 and June 30, 2023

(In thousands)

For the Six Months Ended

March 29, 2024 March 31, 2023

For the Nine Months Ended

June 28, 2024 June 30, 2023

Cash Flows from Operating Activities:

27 unchanged sentences

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 ) —

6 unchanged sentences

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 )

22 unchanged sentences

Readers of this Quarterly Report on Form 10-Q should also read our consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 29, 2023 (“2023 Form 10-K”).

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements as of March 29, 2024, and for the three and six months ended March 29, 2024.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements as of June 28, 2024, and for the three and nine months ended June 28, 2024.

Our interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year.

1 unchanged sentence

federal income tax purposes (hereinafter referred to as the “Separation Transaction”).

The Separation Transaction, which is expected to close in fiscal year 2024, is subject to regulatory approvals and other customary closing conditions.

The Separation Transaction, which is expected to close in the second half of September 2024, is subject to regulatory approvals and other customary closing conditions.

On April 26, 2019, Jacobs completed the sale of its Energy, Chemicals and Resources ("ECR") business to Worley Limited ("Worley"), a company incorporated in Australia, for a purchase price of $ 3.4 billion consisting of (i) $ 2.8 billion in cash plus (ii) 58.2 million ordinary shares of Worley, subject to adjustments for changes in working capital and certain other items (the “ECR sale”).

70 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The following table further disaggregates our revenue by geographic area for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands):

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

The following table further disaggregates our revenue by geographic area for the three and nine months ended June 28, 2024 and June 30, 2023 (in thousands):

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

United States $ 2,849,019 $ 2,816,773 $ 8,526,005 $ 8,047,887

8 unchanged sentences

Contract liabilities represent amounts billed to clients in excess of revenue recognized to date.

Revenue recognized for the three and six months ended March 29, 2024 that was previously included in the contract liability balance on September 29, 2023 was $ 105.2 million and $ 474.9 million, respectively.

Revenue recognized for the three and six months ended March 31, 2023 that was included in the contract liability balance on September 30, 2022 was $ 82.7 million and $ 413.0 million, respectively.

Revenue recognized for the three and nine months ended June 28, 2024 that was previously included in the contract liability balance on September 29, 2023 was $ 56.5 million and $ 531.3 million, respectively.

Revenue recognized for the three and nine months ended June 30, 2023 that was included in the contract liability balance on September 30, 2022 was $ 65.1 million and $ 483.9 million, respectively.

Remaining Performance Obligation

The Company’s remaining performance obligations as of March 29, 2024 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress.

The Company had approximately $ 17.5 billion in remaining performance obligations as of March 29, 2024.

The Company’s remaining performance obligations as of June 28, 2024 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress.

The Company had approximately $ 18.8 billion in remaining performance obligations as of June 28, 2024.

The Company expects to recognize approximately 57 % of its remaining performance obligations into revenue within the next twelve months and the remaining 43 % thereafter.

7 unchanged sentences

Net earnings used for the purpose of determining basic and diluted EPS is determined by taking net earnings, less earnings available to participating securities and the preferred redeemable noncontrolling interests redemption value adjustment associated with the PA Consulting transaction.

The following table reconciles the denominator used to compute basic EPS to the denominator used to compute diluted EPS for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands):

The following table reconciles the denominator used to compute basic EPS to the denominator used to compute diluted EPS for the three and nine months ended June 28, 2024 and June 30, 2023 (in thousands):

JACOBS SOLUTIONS INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Numerator for Basic and Diluted EPS:

1 unchanged sentence

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 loss from discontinued operations allocated to common stock for EPS calculation $ ( 768 ) $ ( 75 ) $ ( 1,342 ) $ ( 783 )

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

16 unchanged sentences

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 March 29, 2024, the Company has $ 679.4 million remaining under the 2023 Repurchase Authorization.

The following table summarizes repurchase activity under the 2023 Repurchase Authorization through the second fiscal quarter of 2024:

At June 28, 2024, the Company had $ 528.5 million remaining under the 2023 Repurchase Authorization.

The following table summarizes repurchase activity under the 2023 Repurchase Authorization through the third fiscal quarter of 2024:

JACOBS SOLUTIONS INC.

9 unchanged sentences

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.

On May 2, 2024 , the Company’s Board of Directors declared a quarterly dividend of $ 0.29 per share of the Company’s common stock to be paid on June 21, 2024 , to shareholders of record on the close of business on May 24, 2024 .

On July 11, 2024 , the Company’s Board of Directors declared a quarterly dividend of $ 0.29 per share of the Company’s common stock to be paid on August 23, 2024 , to shareholders of record on the close of business on July 26, 2024 .

Future dividend declarations are subject to review and approval by the Company’s Board of Directors.

Dividends paid through the second fiscal quarter of 2024 and the preceding fiscal year are as follows:

Dividends paid through the third fiscal quarter of 2024 and the preceding fiscal year are as follows:

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

8 unchanged sentences

Goodwill and Intangibles

The carrying value of goodwill appearing in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023 was as follows (in thousands):

The carrying value of goodwill appearing in the accompanying Consolidated Balance Sheets at June 28, 2024 and September 29, 2023 was as follows (in thousands):

Critical Mission Solutions People & Places Solutions Divergent Solutions PA Consulting Total

1 unchanged sentence

Foreign currency translation and other 4,854 6,437 1,289 48,761 61,341

Balance March 29, 2024 $ 2,249,377 $ 3,214,110 $ 596,878 $ 1,344,057 $ 7,404,422

The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023 (in thousands):

Balance June 28, 2024 $ 2,249,839 $ 3,214,630 $ 597,001 $ 1,343,397 $ 7,404,867

The following table provides certain information related to the Company’s acquired intangibles in the accompanying Consolidated Balance Sheets at June 28, 2024 and September 29, 2023 (in thousands):

Customer Relationships, Contracts and Backlog Developed Technology Trade Names Total

3 unchanged sentences

Foreign currency translation and other 20,505 200 6,221 26,926

Balance March 29, 2024 $ 953,276 $ 67,048 $ 188,916 $ 1,209,240

Balance June 28, 2024 $ 908,271 $ 63,071 $ 185,235 $ 1,156,577

The following table presents estimated amortization expense of intangible assets for the remainder of fiscal 2024 and for the succeeding years.

6 unchanged sentences

Receivables and Contract Assets

The following table presents the components of receivables and contract assets appearing in the accompanying Consolidated Balance Sheets at March 29, 2024 and September 29, 2023, as well as certain other related information (in thousands):

March 29, 2024 September 29, 2023

The following table presents the components of receivables and contract assets appearing in the accompanying Consolidated Balance Sheets at June 28, 2024 and September 29, 2023, as well as certain other related information (in thousands):

June 28, 2024 September 29, 2023

Components of receivables and contract assets:

5 unchanged sentences

Amounts due from the United States federal government, included above, net of contract liabilities $ 806,068 $ 802,566

Amounts billed, net consist of amounts invoiced to clients in accordance with the terms of our client contracts and are shown net of an allowance for doubtful accounts.

Amounts billed, net consist of amounts invoiced to clients in accordance with the terms of our client contracts and are shown net of an allowance for expected credit losses.

We anticipate that substantially all of such billed amounts will be collected over the next twelve months.

4 unchanged sentences

Accumulated Other Comprehensive Income

The following table presents the Company's roll forward of accumulated other comprehensive income (loss) after-tax as of March 29, 2024 (in thousands):

The following table presents the Company's roll forward of accumulated other comprehensive income (loss) after-tax as of June 28, 2024 (in thousands):

Change in Net Pension Obligation Foreign Currency Translation Adjustment (1)

4 unchanged sentences

Reclassifications from accumulated other comprehensive income (loss) — — ( 28,789 ) ( 28,789 )

Balance at March 29, 2024

Balance at June 28, 2024

$ ( 331,313 ) $ ( 556,952 ) $ 81,850 $ ( 806,415 )

( 1) Included in the overall foreign currency translation adjustment for the six months ended March 29, 2024 and March 31, 2023 are $( 21.2 ) million and $( 87.2 ) million, respectively, in unreali zed gains (losses) on long-term foreign currency denominated intercompany loans not anticipated to be settled in the foreseeable future.

(2) Included in the Company’s cumulative net unrealized gains from interest rate and cross currency swaps recorded in accumulated other comprehensive income as of March 29, 2024 were approximately $ 20.2 million in unrealized gains, net of taxes, which are expected to be realized in earnings during the twelve months subsequent to March 29, 2024.

( 1) Included in the overall foreign currency translation adjustment for the nine months ended June 28, 2024 and June 30, 2023 are $( 9.8 ) million and $( 93.5 ) million, respectively, in unreali zed gains (losses) on long-term foreign currency denominated intercompany loans not anticipated to be settled in the foreseeable future.

(2) Included in the Company’s cumulative net unrealized gains from interest rate and cross currency swaps recorded in accumulated other comprehensive income as of June 28, 2024 were approximately $ 18.3 million in unrealized gains, net of taxes, which are expected to be realized in earnings during the twelve months subsequent to June 28, 2024.

JACOBS SOLUTIONS INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The Company’s effective tax rates from continuing operations for the three months ended March 29, 2024 and March 31, 2023 were 27.9 % and 7.6 %, respectively.

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 March 29, 2024 were 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 $ 5.5 million.

These expense items are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year.

For the three months ended March 31, 2023, the main differences were attributable to a tax benefit of $ 40.2 million related to uncertain tax positions (“UTPs”) in the U.S.

that were effectively settled, of which $ 30.8 million relates to positions carried forward from the acquisition of CH2M Hill Companies Ltd.

that was completed in 2018, as well as a tax benefit of $ 8.6 million for the release of previously valued foreign tax credits.

These benefits were partly offset by 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.

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 $ 4.6 million.

The Company's effective tax rates from continuing operations for the six months ended March 29, 2024 and March 31, 2023 were 12.6 % and 15.4 %, respectively.

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 six-month period ended March 29, 2024 related to a discrete event associated with the election to treat an Australian subsidiary as a corporation versus a partnership for 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 $ 7.3 million and U.S.

tax on foreign earnings of $ 8.6 million, which are expected to have a continuing impact on the Company's effective tax rate for the remainder of the fiscal year.

For the six months ended March 31, 2023, the main differences were associated with net tax benefits of $ 39.0 million mostly related to UTPs mentioned above and a tax benefit of $ 8.6 million for the release of previously valued foreign tax credits, 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.

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 i s 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.

In the normal course o f 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.

However, future resul ts 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.

Joint Ventures, VIEs and Other Investments

For the Company's consolidated variable interest entities ("VIE") joint ventures, the carrying value of assets and liabilities was $ 391.8 million and $ 244.3 million, respectively, as of March 29, 2024 and $ 424.2 million and $ 279.8 million, respectively, as of September 29, 2023.

For the Company's consolidated variable interest entities ("VIE") joint ventures, the carrying value of assets and liabilities was $ 406.4 million and $ 246.8 million, respectively, as of June 28, 2024 and $ 424.2 million and $ 279.8 million, respectively, as of September 29, 2023.

There are no consolidated VIEs that have debt or credit facilities.

For the Company's proportionate consolidated VIEs, the carrying value of assets and liabilities was $ 128.9 million and $ 126.0 million, respectively, as of March 29, 2024, and $ 132.0 million and $ 128.9 million, respectively, as of September 29, 2023.

The carrying values of our investments in equity method joint ventures in the Consolidated Balance Sheets (reported in Other Noncurrent Assets:

Miscellaneous) as of March 29, 2024 and September 29, 2023 were $ 54.4 million and $ 49.6 million, respectively.

Additionally, income from equity method joint ventures (reported in Revenue) was $ 15.2 million and $ 7.5 million, respectively, during the three months ended March 29, 2024 and March 31, 2023, with $ 25.5 million and $ 17.5 million, respectively, for the corresponding six month periods.

As of March 29, 2024, the Company's equity method investment carrying values do not include material amounts exceeding their share of the respective joint ventures' reported net assets.

Accounts receivable from unconsolidated joint ventures accounted for under the equity method was $ 14.4 million and $ 16.1 million as of March 29, 2024 and September 29, 2023, respectively.

For the Company's proportionate consolidated VIEs, the carrying value of assets and liabilities was $ 143.8 million and $ 134.3 million, respectively, as of June 28, 2024, and $ 132.0 million and $ 128.9 million, respectively, as of September 29, 2023.

JACOBS SOLUTIONS INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

At March 29, 2024 and September 29, 2023, long-term debt consisted of the following (principal amounts in thousands):

Interest Rate Maturity March 29, 2024 September 29, 2023

The carrying values of our investments in equity method joint ventures in the Consolidated Balance Sheets (reported in Other Noncurrent Assets:

Miscellaneous) as of June 28, 2024 and September 29, 2023 were $ 61.0 million and $ 49.6 million, respectively.

Additionally, income from equity method joint ventures (reported in Revenue) was $ 12.5 million and $ 7.6 million, respectively, during the three months ended June 28, 2024 and June 30, 2023, with $ 38 million and $ 25.1 million, respectively, for the corresponding nine-month periods.

As of June 28, 2024, the Company's equity method investment carrying values do not include material amounts exceeding their share of the respective joint ventures' reported net assets.

Accounts receivable from unconsolidated joint ventures accounted for under the equity method was $ 18.0 million and $ 16.1 million as of June 28, 2024 and September 29, 2023, respectively.

At June 28, 2024 and September 29, 2023, long-term debt consisted of the following (principal amounts in thousands):

Interest Rate Maturity June 28, 2024 September 29, 2023

Revolving Credit Facility Benchmark + applicable margin (1) (2) February 2028 $ 61,121 $ 10,000

17 unchanged sentences

dollar denominated borrowings under the Revolving Credit Facility bear interest at either a SOFR rate plus a margin of between 0.975 % and 1.725 % or a base rate plus a margin of between 0 % and 0.625 %.

The applicable SOFR rates, or LIBOR rate for the prior fiscal year end, including applicable margins at March 29, 2024 and September 29, 2023 were approximately 6.68 % and 8.75 %.

The applicable SOFR rates, or LIBOR rate for the prior fiscal year end, including applicable margins at June 28, 2024 and September 29, 2023 were approximately 4.90 % and 8.75 %.

Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908 % and 1.658 %.

There were no amounts drawn in British pounds as of March 29, 2024.

There were no amounts drawn in British pounds as of June 28, 2024.

(3) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the Amended and Restated Term Loan Agreement (defined below)), U.S.

1 unchanged sentence

The applicable SOFR, or LIBOR rate for the prior fiscal year end, including applicable margins for borrowings denominated in U.S.

dollars at March 29, 2024 and September 29, 2023 was approximately 6.67 % and 6.68 %.

Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908 % and 1.658 %, which was approximately 6.47 % and 6.47 % at March 29, 2024 and September 29, 2023, respectively.

dollars at June 28, 2024 and September 29, 2023 was approximately 6.68 % and 6.68 %.

Borrowings denominated in British pounds bear interest at an adjusted SONIA rate plus a margin of between 0.908 % and 1.658 %, which was approximately 6.48 % and 6.47 % at June 28, 2024 and September 29, 2023, respectively.

(4) Depending on the Company’s Consolidated Leverage Ratio or Debt Rating (each as defined in the 2020 Term Loan Agreement), U.S.

1 unchanged sentence

The applicable SOFR, or LIBOR rate for the prior fiscal year end, including applicable margins for borrowings denominated in U.S.

dollars at March 29, 2024 and September 29, 2023 were approximately 6.68 % and 6.68 %.

(5) From and including September 1, 2028 (the “First Step Up Date”), the interest rate payable on the 5.90 % Bonds (as defined below) will be increased by an additional 12.5 basis points to 6.025 % per annum (the “First Step Up Interest Rate”) unless the Company notifies the Trustee (as defined below) on or before the date that is 15 days prior to the First Step Up Date that the Percentage of Gender Diversity Performance Target (as defined in the First Supplemental Indenture (as defined below)) has been satisfied and receives a related assurance letter verifying such compliance.

From and including September 1, 2030 (the “Second Step Up Date”), the interest rate payable on the 5.90 % Bonds will be increased by 12.5 basis points to (x) 6.150 % per annum if the First Step Up Interest Rate was in effect immediately prior to the Second Step Up Date or (y) 6.025 % per annum if the initial interest rate was in effect immediately prior to the Second Step Up Date, unless the Company notifies the Trustee on or before the date that is 15 days prior to the Second Step Up Date that the GHG Emissions Performance Target (as defined in the First Supplemental Indenture) has been satisfied and receives a related assurance letter verifying such compliance.

dollars at June 28, 2024 and September 29,

JACOBS SOLUTIONS INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

(6) Balance as of March 29, 2024 is associated with the March 25, 2025 scheduled maturity of the 2020 Term Loan Facility, which was reclassified from long-term debt in March 2024.

2023 were approximately 6.69 % and 6.68 %.

(6) Balance as of June 28, 2024 is associated with the March 25, 2025 scheduled maturity of the 2020 Term Loan Facility, which was reclassified from long-term debt in March 2024.

Previously reported balance as of September 29, 2023 was comprised of the 2020 Term Loan quarterly principal repayments of 1.25 %, or $ 9.1 million and £ 3.1 million, of the aggregate initial principal amount borrowed, totaling $ 51.8 million in U.S.

18 unchanged sentences

borrowed an aggregate principal amount of £ 250.0 million.

The proceeds of the term loans were used to repay an existing term loan with a maturity date of June 2020 and for general corporate purposes.

On February 6, 2023, the 2020 Term Loan Agreement was amended to, among other things:

(a) replace and adjust interest rates based on market conditions and incorporate a sustainability-linked pricing adjustment, (b) increase the Consolidated Leverage Ratio financial covenant to 3.50 :1.00 (subject to temporary increases to 4.00 :1.00 following the closing of certain material acquisitions), (c) eliminate the net worth financial covenant, and (d) add Jacobs as a guarantor of the obligations of JEGI and Jacobs U.K.

The 2020 Term Loan facility matures in March 2025 and the related outstanding balances under this facility have been reclassified to current maturities of long-term debt in the Company’s March 29, 2024 consolidated balance sheet in the current quarter.

The 2020 Term Loan Facility and the 2021 Term Loan Facility are together referred to as the "Term Loan Facilities".

JACOBS SOLUTIONS INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

proceeds of the term loans were used to repay an existing term loan with a maturity date of June 2020 and for general corporate purposes.

On February 6, 2023, the 2020 Term Loan Agreement was amended to, among other things:

The 2020 Term Loan facility matures in March 2025 and the related outstanding balances under this facility were reclassified to current maturities of long-term debt in the Company’s March 29, 2024 consolidated balance sheet.

The 2020 Term Loan Facility and the 2021 Term Loan Facility are together referred to as the "Term Loan Facilities".

In the fourth quarter of fiscal 2022, the Revolving Credit Facility and Term Loan Facilities were amended to permit the Holding Company Reorganization.

On December 20, 2023, the Revolving Credit Facility and Term Loan Facilities were amended to adjust the point in time at which certain compliance thresholds are tested in connection with the Separation Transaction.

We were in compliance with the covenants under the Revolving Credit Facility and Term Loan Facilities at March 29, 2024.

On April 10, 2024, the Term Loan Facilities were amended to permit the potential exchange of Jacobs' retained equity stake in the combined company after the Separation Transaction for the effective repayment of a portion of the Term Loan Facilities.

We were in compliance with the covenants under the Revolving Credit Facility and Term Loan Facilities at June 28, 2024.

5.90 % Bonds, due 2033

9 unchanged sentences

6.35 % Bonds, due 2028

JACOBS SOLUTIONS INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

On August 18, 2023, JEGI completed an offering of $ 600 million aggregate principal amount of 6.35 % Bonds due 2028 (the “ 6.35 % Bonds”).

7 unchanged sentences

At any time and from time to time on or after the 6.35 % Bonds Par Call Date, JEGI may redeem the 6.35 % Bonds, at its option, in whole or in part, at a redemption price equal to 100 % of the principal amount of the 6.35 % Bonds to be redeemed, plus accrued and unpaid interest thereon, if any, to, but excluding, the redemption date.

JACOBS SOLUTIONS INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Other arrangements

4 unchanged sentences

See Note 17- Commitments and Contingencies and Derivative Financial Instruments for discussion regarding the Company's derivative instruments.

The Company has issued $ 0.5 million in letters of credit under the Revolving Credit Facility, leaving $ 2.11 billion of available borrowing capacity under the Revolving Credit Facility at March 29, 2024.

In addition, the Company had issued $ 289.2 million under various separate, committed and uncommitted letter-of-credit facilities for issued letters of credit totaling $ 289.7 million at March 29, 2024.

The Company has issued $ 0.5 million in letters of credit under the Revolving Credit Facility, leaving $ 2.19 billion of available borrowing capacity under the Revolving Credit Facility at June 28, 2024.

In addition, the Company had issued $ 295.6 million under various separate, committed and uncommitted letter-of-credit facilities for issued letters of credit totaling $ 296.1 million at June 28, 2024.

JACOBS SOLUTIONS INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The components of lease expense (reflected in selling, general and administrative expenses) for th e three and six months ended March 29, 2024 and March 31, 2023 were as follows (in thousands):

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

The components of lease expense (reflected in selling, general and administrative expenses) for th e three and nine months ended June 28, 2024 and June 30, 2023 were as follows (in thousands):

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Lease expense

3 unchanged sentences

Total lease expense $ 38,142 $ 40,282 $ 116,002 $ 121,044

Supplemental information related to the Company's leases for the six months ended March 29, 2024 and March 31, 2023 was as follows (in thousands):

Six Months Ended

March 29, 2024 March 31, 2023

Supplemental information related to the Company's leases for the nine months ended June 28, 2024 and June 30, 2023 was as follows (in thousands):

Nine Months Ended

June 28, 2024 June 30, 2023

Cash paid for amounts included in the measurements of lease liabilities $ 136,805 $ 138,213

14 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

As a result of the analysis, the Company recognized impairment losses during the three and six months ended March 31, 2023 of $ 10.1 million and $ 37.2 million, respectively, which are included in selling, general, and administrative expenses in the accompanying statement of earnings.

As a result of the analysis, the Company recognized impairment losses during the nine months ended June 30, 2023 of $ 38.1 million which are included in selling, general, and administrative expenses in the accompanying statement of earnings.

The impairment losses recorded include $ 33.1 million related to the right-of-use lease assets and $ 5.0 million related to the other long-lived assets, including property, equipment, and improvements and leasehold improvements for the fiscal 2023 period.

2 unchanged sentences

Pension and Other Postretirement Benefit Plans

The following table presents the components of net periodic pension benefit expense recognized in earnings during the three and six months ended March 29, 2024 and March 31, 2023 (in thousands):

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

The following table presents the components of net periodic pension benefit expense recognized in earnings during the three and nine months ended June 28, 2024 and June 30, 2023 (in thousands):

Three Months Ended Nine Months Ended

June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023

Service cost $ 2,261 $ 1,748 $ 6,783 $ 5,244

5 unchanged sentences

The following table presents certain information regarding the Company’s cash contributions to our pension plans for fiscal 2024 (in thousands):

Cash contributions made during the first six months of fiscal 2024

Cash contributions made during the first nine months of fiscal 2024

Cash contributions projected for the remainder of fiscal 2024

7 unchanged sentences

In connection with the PA Consulting investment, the Company recorded redeemable noncontrolling interests, including subsequent purchase accounting adjustments, representing the noncontrolling interest holders' equity interests in the form of preferred and common shares of PA Consulting, with substantially all of the value associated with these interests allocable to the preferred shares.

During the first half of 2024 and 2023, PA Consulting repurchased certain shares of the redeemable noncontrolling interest holders for cash amounts of $ 24.4 million and $ 58.4 million, respectively.

During the first nine months of 2024 and 2023, PA Consulting repurchased certain shares of the redeemable noncontrolling interest holders for cash amounts of $ 41.8 million and $ 90.4 million, respectively.

The difference between the cash purchase prices and the recorded book values of these repurchased interests was recorded in the Company’s consolidated retained earnings.

The Company held 70 % and 69 % of the outstanding ownership of PA Consulting as of March 29, 2024 and September 29, 2023, respectively.

During the first half of 2024, the Company recognized approximately $ 1.8 million in redemption value adjustments associated with redeemable noncontrolling interests preference share repurchase and reissuance activities that were recorded as an increase in consolidated retained earnings and a $ 0.01 increase in earnings per share, the results of which had no impact on the Company’s overall results of operations, financial position or cash flows.

The Company held 70 % and 69 % of the out standing ownership of PA Consulting as of June 28, 2024 and September 29, 2023, respectively.

During the first nine months of 2024, the Company recognized approximately $ 1.7 million in redemption value adjustments associated with redeemable noncontrolling interests preference share repurchase and reissuance activities that were recorded as an increase in consolidated retained earnings and a $ 0.01 increase in earnings per share, the results of which had no impact on the Company’s overall results of operations, financial position or cash flows.

See Note 6- Earnings Per Share and Certain Related Information for more information.

Changes in the redeemable noncontrolling interests d uring the six months ended March 29, 2024 are as follows (in thousands):

Changes in the redeemable noncontrolling interests d uring the nine months ended June 28, 2024 are as follows (in thousands):

Balance at September 29, 2023 $ 632,979

4 unchanged sentences

Repurchase of redeemable noncontrolling interests ( 46,173 )

Issuance of redeemable noncontrolling interests 22,586

Cumulative translation adjustment and other 15,603

Balance at March 29, 2024 $ 725,830

Balance at June 28, 2024 $ 734,465

In addition, certain employees and non-employees of PA Consulting are eligible to receive equity-based incentive grants in the future under the terms of the applicable agreements.

During the first six months of fiscal 2024 and 2023, the Company recorded $ 6.8 million and $ 1.1 million, respectively, in expenses associated with these agreements which is reflected in selling, general and administrative expenses in the consolidated statements of earnings.

The Company, through its investment in PA Consulting, held $ 1.0 million and $ 2.8 million at March 29, 2024 and September 29, 2023, respectively, in cash that is restricted from general use and is included in Prepaid expenses and other in the Company's Consolidated Balance Sheets.

During the first nine months of fiscal 2024 and 2023, the Company recorded $ 11.5 million and $ 5.1 million, respectively, in expenses associated with these agreements which is reflected in selling, general and administrative expenses in the consolidated statements of earnings.

The Company, through its investment in PA Consulting, held $ 3.6 million and $ 2.8 million at June 28, 2024 and September 29, 2023, respectively, in cash that is restricted from general use and is included in Prepaid expenses and other in the Company's Consolidated Balance Sheets.

JACOBS SOLUTIONS INC.

24 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The following table summarizes the impacts of the Restructuring and other charges by reportable segment in connection with the Separation Transaction, PA Consulting investment, DVS segment reorganization, StreetLight and BlackLynx acquisitions, the Company’s transformation initiatives relating to real estate and other staffing programs, the ECR sale, and CH2M acquisition for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands):

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

The following table summarizes the impacts of the Restructuring and other charges by reportable segment in connection with the Separation Transaction, PA Consulting investment, DVS segment reorganization, StreetLight and BlackLynx acquisitions, the Company’s transformation initiatives relating to real estate and other staffing programs, the ECR sale, and CH2M acquisition for the three and nine months ended June 28, 2024 and June 30, 2023 (in thousands):

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

9 unchanged sentences

$ 58,088 $ 30,912 $ 141,385 $ 78,196

(1) The three and six months ended March 29, 2024 included approximately $ 38.9 million and $ 79.1 million, respectively, in restructuring and other charges mainly relating to the Separation Transaction (primarily professional services and employee separation costs).

The three and six months ended March 31, 2023, in cluded approximately $ 11.0 million and $ 38.7 million, respectively, in charges associated mainly with real estate impairments and related charges, the majority of which related to People and Places Solutions.

The activity in the Company’s accruals for Restructuring and other charges for the six months ended March 29, 2024 is as follows (in thousands):

(1) The three and nine months ended June 28, 2024 included approximately $ 54.8 million and $ 133.9 million, respectively, in restructuring and other charges mainly relating to the Separation Transaction (primarily professional services and employee separation costs).

Included in the three and nine months ended June 30, 2023 were $ 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 in separation activities (mainly professional services) relating to the Separation Transaction.

The nine months ended June 30, 2023 in cluded approximately $ 40.0 million in charges associated mainly with real estate impairments and related charges.

The activity in the Company’s accruals for Restructuring and other charges for the nine months ended June 28, 2024 is as follows (in thousands):

Balance at September 29, 2023

1 unchanged sentence

Payments and other ( 114,859 )

Balance at March 29, 2024 $ 45,454

(1) Excludes other net charges associated mainly with the real estate related impairments during the six months ended March 29, 2024.

The following table summarizes the Restructuring and other charges by major type of costs for the three and six months ended March 29, 2024 and March 31, 2023 (in thousands):

Three Months Ended Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

Balance at June 28, 2024 $ 63,795

(1) Excludes other net charges associated mainly with the real estate related impairments during the nine months ended June 28, 2024.

The following table summarizes the Restructuring and other charges by major type of costs for the three and nine months ended June 28, 2024 and June 30, 2023 (in thousands):

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

4 unchanged sentences

Total $ 58,088 $ 30,912 $ 141,385 $ 78,196

(1) Amounts in the three and six months ended March 29, 2024 are comprised of outside services relating to the Separation Transaction.

(2) Amounts in the three and six months ended March 29, 2024 are comprised of charges relating to the Separation Transaction.

(1) Amounts in the three and nine months ended June 28, 2024 are comprised of outside services relating to the Separation Transaction.

(2) Amounts in the three and nine months ended June 28, 2024 are comprised of charges relating to the Separation Transaction.

JACOBS SOLUTIONS INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Cumulative amounts incurred to date under our various Restructuring and other activities described above by each major type of cost as of March 29, 2024 are as follows (in thousands):

Cumulative amounts incurred to date under our various Restructuring and other activities described above by each major type of cost as of June 28, 2024 are as follows (in thousands):

Lease Abandonments and Impairments $ 432,773

10 unchanged sentences

See Note 12- Borrowings for further discussion relating to the terms of the 5.90 % Bonds .

The unrealized net gain on these instruments was $ 25.1 million and $ 26.5 million, net of tax, and is included in accumulated other comprehensive income as of March 29, 2024 and September 29, 2023, respectively.

In fiscal 2020 we entered into interest rate swap agreements with a notio nal val ue of $ 745.9 million as of March 29, 2024 to manage the interest rate exposure on our variable rate loans.

The unrealized net gain on these instruments was $ 24.3 million and $ 26.5 million, net of tax, and is included in accumulated other comprehensive income as of June 28, 2024 and September 29, 2023, respectively.

In fiscal 2020 we entered into interest rate swap agreements with a notio nal val ue of $ 746.2 million as of June 28, 2024 to manage the interest rate exposure on our variable rate loans.

By entering into the swap agreements, the Company converted the LIBOR and SONIA rate based liabilities into fixed rate liabilities, for periods ranging from five to ten years .

The fair value of the interest rate swaps at March 29, 2024 was $ 79.1 million of which $ 66.2 million is included within miscellaneous other assets and $ 12.9 million is included within current assets on the consolidated balance sheet as of March 29, 2024.

The fair value of the interest rate swaps at June 28, 2024 was $ 76.4 million of which $ 66.7 million is included within miscellaneous other assets and $ 9.7 million is included within current assets on the consolidated balance sheet as of June 28, 2024.

The fair value of interest rate swaps at September 29, 2023 was $ 102.6 million, which are included in miscellaneous other assets on the consolidated balance sheet as of September 29, 2023 .

The unrealized net gain on these interest rate swaps as of March 29, 2024 and September 29, 2023 was $ 59.6 million and $ 77.2 million, respectively, net of tax , and was included in accumulated other comprehensive income.

The unrealized net gain on these interest rate swaps as of June 28, 2024 and September 29, 2023 was $ 57.5 million and $ 77.2 million, respectively, net of tax , and was included in accumulated other comprehensive income.

Additionally, in fiscal 2020, we entered into a cross currency swap agreement with a notional value of $ 127.8 million to manage the interest rate and foreign currency exposure on our USD borrowings by a European subsidiary.

4 unchanged sentences

The swaps were designated as cash-flow hedges in accordance with ASC 815, Derivatives and Hedging .

Additionally, the Company held foreign exchange forward contracts in currencies that support our operations, including British Pound, Euro, Australian Dollar and other currencies, with notional values of $ 946.1 million at March 29, 2024 and $ 857.7 million at September 29, 2023.

Additionally, the Company held foreign exchange forward contracts in currencies that support our operations, including British Pound, Australian Dollar, Euro and other currencies, with notional values of $ 1,056.6 million at June 28, 2024 and $ 857.7 million at September 29, 2023.

The length of these contracts currently ranges from one week to 7 months.

The fair value of the foreign exchange contracts at March 29, 2024 was $( 4.3 ) million, of which $( 4.9 ) million is included within current liabilities and $ 0.6 million is included within current assets on the consolidated balance sheet as of March 29, 2024.

The fair value of the foreign exchange contracts at June 28, 2024 was $( 1.9 ) million, of which $( 2.6 ) million is included within current liabilities and $ 0.7 million is included within current assets on the consolidated balance sheet as of June 28, 2024.

The fair value of the contracts as of September 29, 2023 was $ 9.5 million, of which $ 16.1 million is included within current assets and $( 6.6 ) million is included within current liabilities on the consolidated balance sheet as of September 29, 2023.

16 unchanged sentences

Guarantees are accounted for in accordance with ASC 460-10, Guarantees , at fair value at the inception of the guarantee.

At March 29, 2024 and September 29, 2023, the Company had issued and outstanding approximately $ 289.7 million and $ 322.0 million, respectively, in LOCs and $ 2.2 billion and $ 2.0 billion, respectively, in surety bonds.

At June 28, 2024 and September 29, 2023, the Company had issued and outstanding approximately $ 296.1 million and $ 322.0 million, respectively, in LOCs and $ 2.1 billion and $ 2.0 billion, respectively, in surety bonds.

We maintain insurance coverage for most insurable aspects of our business and operations.

55 unchanged sentences

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 Months Ended For the Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

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:

4 unchanged sentences

Total $ 4,231,580 $ 4,186,702 $ 12,659,898 $ 12,063,702

For the Three Months Ended For the Six Months Ended

March 29, 2024 March 31, 2023 March 29, 2024 March 31, 2023

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:

13 unchanged sentences

Earnings from Continuing Operations Before Taxes $ 226,150 $ 226,685 $ 633,486 $ 676,478

(1) For the six months ended March 29, 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 $ 52.6 million and $ 50.5 million for the three months ended March 29, 2024 and March 31, 2023, respectively, and $ 103.8 million and $ 100.2 million, for the six months ended March 29, 2024 and March 31, 2023, respectively, along with approximately $ 11.0 million intangibles impairment charge in the six month period ended, March 29, 2024 .

Additionally, the comparison of the six 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 months and six months ended March 29, 2024 included $ 38.9 million and $ 79.1 million, respectively, in restructuring and other charges and $ 8.4 million and $ 19.4 million, respectively, of transaction charges, mainly relating to the Separation Transaction (primarily professional services and employee separation costs).

Included in the three months and six months ended March 31, 2023 were $ 10.1 million and $ 37.2 million, respectively, mainly in real estate impairment charges related to the Company's transformation initiatives.

(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.

JACOBS SOLUTIONS INC.

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements