TETRA TECH INC, 10-K filed on 11/25/2022
Annual Report
v3.22.2.2
Cover - USD ($)
$ in Billions
 12 Months Ended
Oct. 02, 2022
Nov. 09, 2022
Apr. 03, 2022
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Oct. 02, 2022    
Current Fiscal Year End Date --10-02    
Document Transition Report false    
Entity File Number 0-19655    
Entity Registrant Name TETRA TECH, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 95-4148514    
Entity Address, Address Line One 3475 East Foothill Boulevard    
Entity Address, City or Town Pasadena    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 91107    
City Area Code 626    
Local Phone Number 351-4664    
Title of 12(b) Security Common Stock, $0.01 par value    
Trading Symbol TTEK    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 8.9
Entity Common Stock, Shares Outstanding   52,981,143  
Documents Incorporated by Reference
DOCUMENT INCORPORATED BY REFERENCE
Portions of registrant's Proxy Statement for its 2023 Annual Meeting of Stockholders are incorporated by reference in Part III of this report where indicated.
    
Entity Central Index Key 0000831641    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Amendment Flag false    
v3.22.2.2
Audit Information
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Auditor Information [Abstract]    
Auditor Name PricewaterhouseCoopers PricewaterhouseCoopers
Auditor Location Los Angeles, California Los Angeles, California
Auditor Firm ID 238  
v3.22.2.2
Consolidated Balance Sheets - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Current assets:    
Cash and cash equivalents $ 185,094 $ 166,568
Accounts receivable, net 755,112 668,998
Contract assets 92,405 103,784
Prepaid expenses and other current assets 115,400 112,338
Income taxes receivable 10,205 14,260
Total current assets 1,158,216 1,065,948
Property and equipment, net 32,316 37,733
Right-of-use assets, operating leases 182,319 215,422
Investments in unconsolidated joint ventures 4,570 3,282
Goodwill 1,110,412 1,108,578
Intangible assets, net 29,163 37,990
Deferred tax assets 47,804 54,413
Other long-term assets 57,976 53,196
Total assets 2,622,776 2,576,562
Current liabilities:    
Accounts payable 147,436 128,767
Accrued compensation 237,669 206,322
Contract liabilities 241,340 190,403
Short-term lease liabilities, operating leases 57,865 67,452
Current portion of long-term debt 12,504 12,504
Current contingent earn-out liabilities 28,797 19,520
Other current liabilities 190,406 223,515
Total current liabilities 916,017 848,483
Deferred tax liabilities 15,161 10,563
Long-term debt 246,250 200,000
Long-term lease liabilities, operating leases 146,285 174,285
Long-term contingent earn-out liabilities 36,769 39,777
Other long-term liabilities 79,157 69,163
Commitments and contingencies (Note 17)
Equity:    
Preferred stock – Authorized, 2,000 shares of $0.01 par value; no shares issued and outstanding at October 2, 2022 and October 3, 2021 0 0
Common stock – Authorized, 150,000 shares of $0.01 par value; issued and outstanding, 52,981 and 53,981 shares at October 2, 2022 and October 3, 2021, respectively 530 540
Accumulated other comprehensive loss (208,144) (125,028)
Retained earnings 1,390,701 1,358,726
Tetra Tech stockholders' equity 1,183,087 1,234,238
Noncontrolling interests 50 53
Total stockholders' equity 1,183,137 1,234,291
Total liabilities and stockholders' equity $ 2,622,776 $ 2,576,562
v3.22.2.2
Consolidated Balance Sheets (Parenthetical) - $ / shares
Oct. 02, 2022
Oct. 03, 2021
Statement of Financial Position [Abstract]    
Preferred stock, authorized shares (in shares) 2,000,000 2,000,000
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, authorized shares (in shares) 150,000,000 150,000,000
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares issued (in shares) 52,981,000 53,981,000
Common stock, shares outstanding (in shares) 52,981,000 53,981,000
v3.22.2.2
Consolidated Statements of Income - USD ($)
shares in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Revenue $ 3,504,048,000 $ 3,213,513,000 $ 2,994,891,000
Gross profit 575,559,000 498,400,000 446,535,000
Selling, general and administrative expenses (234,784,000) (222,972,000) (204,615,000)
Contingent consideration – fair value adjustments (329,000) 3,273,000 14,971,000
Impairment of goodwill 0 0 (15,800,000)
Income from operations 340,446,000 278,701,000 241,091,000
Interest income 1,780,000 917,000 1,375,000
Interest expense (13,364,000) (12,748,000) (14,475,000)
Other income 19,904,000 0 0
Income before income tax expense 348,766,000 266,870,000 227,991,000
Income tax expense (85,602,000) (34,039,000) (54,101,000)
Net income 263,164,000 232,831,000 173,890,000
Net income attributable to noncontrolling interests (39,000) (21,000) (31,000)
Net income attributable to Tetra Tech 263,125,000 232,810,000 173,859,000
Net income attributable to Tetra Tech $ 263,125,000 $ 232,810,000 $ 173,859,000
Earnings per share attributable to Tetra Tech:      
Basic (in dollars per share) $ 4.91 $ 4.31 $ 3.21
Diluted (in dollars per share) $ 4.86 $ 4.26 $ 3.16
Weighted-average common shares outstanding:      
Basic (in shares) 53,620 54,078 54,235
Diluted (in shares) 54,163 54,675 55,022
Subcontractor costs      
Costs of revenue $ (668,468,000) $ (661,341,000) $ (646,319,000)
Other costs of revenue      
Costs of revenue $ (2,260,021,000) $ (2,053,772,000) $ (1,902,037,000)
v3.22.2.2
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Statement of Comprehensive Income [Abstract]      
Net income $ 263,164 $ 232,831 $ 173,890
Other comprehensive income, net of tax      
Foreign currency translation adjustments, net of tax (94,933) 30,644 3,435
Gain (loss) on cash flow hedge valuations, net of tax 11,806 6,117 (4,638)
Other comprehensive income (loss), net of tax (83,127) 36,761 (1,203)
Comprehensive income, net of tax 180,037 269,592 172,687
Comprehensive income attributable to noncontrolling interests, net of tax 28 24 30
Comprehensive income attributable to Tetra Tech, net of tax $ 180,009 $ 269,568 $ 172,657
v3.22.2.2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Statement of Comprehensive Income [Abstract]      
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Foreign currency translation adjustments, net of tax Foreign currency translation adjustments, net of tax Foreign currency translation adjustments, net of tax
Foreign currency translation adjustments, net of tax $ (94,933) $ 30,644 $ 3,435
Gain (loss) on cash flow hedge valuations, net of tax $ 11,806 $ 6,117 $ (4,638)
v3.22.2.2
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Cash flows from operating activities:      
Net income $ 263,164,000 $ 232,831,000 $ 173,890,000
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 27,033,000 23,805,000 24,611,000
Equity in income of unconsolidated joint ventures (7,525,000) (4,990,000) (6,605,000)
Distributions of earnings from unconsolidated joint ventures 6,177,000 4,604,000 6,310,000
Amortization of stock-based awards 26,227,000 23,067,000 19,424,000
Deferred income taxes 2,175,000 (38,494,000) 565,000
Impairment of goodwill 0 0 15,800,000
Fair value adjustments to contingent consideration 329,000 (3,273,000) (14,971,000)
Loss (gain) on sale of assets 103,000 (110,000) (11,066,000)
Fair value adjustment to foreign currency forward contract (19,904,000) 0 0
Changes in operating assets and liabilities, net of effects of business acquisitions:      
Accounts receivable and contract assets (89,781,000) 13,301,000 156,015,000
Prepaid expenses and other assets 69,697,000 (582,000) (11,321,000)
Accounts payable 17,099,000 13,551,000 (102,162,000)
Accrued compensation 27,458,000 5,425,000 (8,173,000)
Contract liabilities 55,915,000 13,407,000 5,894,000
Other liabilities (56,606,000) 8,740,000 19,460,000
Income taxes receivable/payable 14,627,000 13,090,000 (5,192,000)
Net cash provided by operating activities 336,188,000 304,372,000 262,479,000
Cash flows from investing activities:      
Payments for business acquisitions, net of cash acquired (49,124,000) (84,911,000) (68,488,000)
Capital expenditures (10,582,000) (8,573,000) (12,245,000)
Proceeds from sales of assets 3,966,000 492,000 17,710,000
Net cash used in investing activities (55,740,000) (92,992,000) (63,023,000)
Cash flows from financing activities:      
Proceeds from borrowings 161,456,000 370,222,000 308,364,000
Repayments on long-term debt (117,080,000) (414,308,000) (331,066,000)
Repurchases of common stock (200,000,000) (60,000,000) (117,188,000)
Taxes paid on vested restricted stock (25,223,000) (17,630,000) (11,166,000)
Payments of contingent earn-out liabilities (20,124,000) (20,251,000) (22,900,000)
Stock options exercised 1,806,000 11,250,000 10,334,000
Bank overdrafts 0 (36,627,000) 36,627,000
Dividends paid (46,099,000) (40,041,000) (34,743,000)
Principal payments on finance leases (4,344,000) (2,714,000) (1,311,000)
Net cash used in financing activities (249,608,000) (210,099,000) (163,049,000)
Effect of exchange rate changes on cash and cash equivalents (12,314,000) 7,772,000 207,000
Net increase in cash and cash equivalents 18,526,000 9,053,000 36,614,000
Cash and cash equivalents at beginning of year 166,568,000 157,515,000 120,901,000
Cash and cash equivalents at end of year 185,094,000 166,568,000 157,515,000
Cash paid during the year for:      
Interest 13,378,000 10,330,000 13,256,000
Income taxes, net of refunds received of $4.8 million, $2.1 million and $1.4 million $ 70,799,000 $ 59,111,000 $ 55,039,000
v3.22.2.2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Statement of Cash Flows [Abstract]      
Income tax refunds received $ 4.8 $ 2.1 $ 1.4
v3.22.2.2
Consolidated Statements of Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Total Tetra Tech Equity
Non-Controlling Interests
Beginning balance (in shares) at Sep. 29, 2019   54,565          
Beginning balance at Sep. 29, 2019 $ 989,464 $ 546 $ 78,132 $ (160,584) $ 1,071,192 $ 989,286 $ 178
Comprehensive income, net of tax:              
Net income 173,890       173,859 173,859 31
Foreign currency translation adjustments 3,435     3,436   3,436 (1)
Gain (loss) on cash flow hedge valuations, net of tax (4,638)     (4,638)   (4,638)  
Comprehensive income, net of tax 172,687         172,657 30
Distributions paid to noncontrolling interests (154)           (154)
Cash dividends (34,743)       (34,743) (34,743)  
Stock-based compensation 19,424   19,424     19,424  
Restricted & performance shares released (in shares)   212          
Restricted & performance shares released (11,166) $ 2 (11,168)     (11,166)  
Stock options exercised (in shares)   361          
Stock options exercised 10,334 $ 4 10,330     10,334  
Shares issued for Employee Stock Purchase Plan (in shares)   168          
Shares issued for Employee Stock Purchase Plan 8,715 $ 1 8,714     8,715  
Stock repurchases (in shares)   (1,509)          
Stock repurchases (117,188) $ (15) (105,432)   (11,741) (117,188)  
Ending balance (in shares) at Sep. 27, 2020   53,797          
Ending balance at Sep. 27, 2020 1,037,373 $ 538 0 (161,786) 1,198,567 1,037,319 54
Comprehensive income, net of tax:              
Net income 232,831       232,810 232,810 21
Foreign currency translation adjustments 30,644     30,641   30,641 3
Gain (loss) on cash flow hedge valuations, net of tax 6,117     6,117   6,117  
Comprehensive income, net of tax 269,592         269,568 24
Distributions paid to noncontrolling interests (25)           (25)
Cash dividends (40,041)       (40,041) (40,041)  
Stock-based compensation 23,067   23,067     23,067  
Restricted & performance shares released (in shares)   215          
Restricted & performance shares released (17,630) $ 3 (17,633)     (17,630)  
Stock options exercised (in shares)   324          
Stock options exercised 11,250 $ 3 11,247     11,250  
Shares issued for Employee Stock Purchase Plan (in shares)   124          
Shares issued for Employee Stock Purchase Plan 10,705 $ 1 10,704     10,705  
Stock repurchases (in shares)   (479)          
Stock repurchases (60,000) $ (5) (27,385)   (32,610) (60,000)  
Ending balance (in shares) at Oct. 03, 2021   53,981          
Ending balance at Oct. 03, 2021 1,234,291 $ 540 0 (125,028) 1,358,726 1,234,238 53
Comprehensive income, net of tax:              
Net income 263,164       263,125 263,125 39
Foreign currency translation adjustments (94,933)     (94,922)   (94,922) (11)
Gain (loss) on cash flow hedge valuations, net of tax 11,806     11,806   11,806  
Comprehensive income, net of tax 180,037         180,009 28
Distributions paid to noncontrolling interests (31)           (31)
Cash dividends (46,099)       (46,099) (46,099)  
Stock-based compensation 26,227   26,227     26,227  
Restricted & performance shares released (in shares)   190          
Restricted & performance shares released $ (25,223) $ 2 (25,225)     (25,223)  
Stock options exercised (in shares) 46 46          
Stock options exercised $ 1,806 $ 0 1,806     1,806  
Shares issued for Employee Stock Purchase Plan (in shares)   106          
Shares issued for Employee Stock Purchase Plan 12,129 $ 1 12,128     12,129  
Stock repurchases (in shares)   (1,342)          
Stock repurchases (200,000) $ (13) (14,936)   (185,051) (200,000)  
Ending balance (in shares) at Oct. 02, 2022   52,981          
Ending balance at Oct. 02, 2022 $ 1,183,137 $ 530 $ 0 $ (208,144) $ 1,390,701 $ 1,183,087 $ 50
v3.22.2.2
Consolidated Statements of Equity (Parenthetical) - $ / shares
 12 Months Ended
Aug. 26, 2022
May 27, 2022
Feb. 25, 2022
Dec. 20, 2021
Sep. 03, 2021
May 28, 2021
Feb. 26, 2021
Dec. 11, 2020
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Statement of Stockholders' Equity [Abstract]                      
Cash dividends paid per share (in dollars per share) $ 0.23 $ 0.23 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.17 $ 0.17 $ 0.86 $ 0.74 $ 0.64
v3.22.2.2
Description of Business
 12 Months Ended
Oct. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
We are a leading global provider of high-end consulting and engineering services that focuses on water, environment, sustainable infrastructure, renewable energy and international development. We are a global company that is Leading with Science® to provide innovative solutions for our public and private clients. We typically begin at the earliest stage of a project by identifying technical solutions and developing execution plans tailored to our clients’ needs and resources. Our solutions may span the entire life cycle of high-end consulting and engineering projects and include applied science, data analysis, research, engineering, design, project management and operations and maintenance.
We manage our business under two reportable segments. Our Government Services Group (“GSG”) reportable segment primarily includes activities with U.S. government clients (federal, state and local) and all activities with development agencies worldwide. Our Commercial/International Services Group (“CIG”) reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies. Beginning in fiscal 2022, we aligned our operations to better serve our clients and markets, and created a new High Performance Buildings ("HPB") division in our CIG reportable segment. As a result, we transferred some related operations in our GSG reportable segment to our CIG reportable segment. Prior year amounts for reportable segments have been reclassified to conform to the current year presentation.
v3.22.2.2
Basis of Presentation and Preparation
 12 Months Ended
Oct. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation and Preparation Basis of Presentation and Preparation
Principles of Consolidation and Presentation.    The consolidated financial statements include our accounts and those of joint ventures of which we are the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year. We report results of operations based on 52 or 53-week periods ending on the Sunday nearest September 30. Fiscal years 2022, 2021 and 2020 contained 52, 53 and 52 weeks, respectively.
Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the amounts reported in our consolidated financial statements and accompanying notes. Although such estimates and assumptions are based on management's best knowledge of current events and actions we may take in the future, actual results could differ materially from those estimates.
Cash and Cash Equivalents.    Cash and cash equivalents include highly liquid investments with original maturities of 90 days or less. Occasionally, we have bank overdrafts, which occur when a bank honors disbursements in excess of funds on deposit in our bank accounts. We classify bank overdrafts as short-term borrowings on our consolidated balance sheets, and report the change in overdrafts as a financing activity in our consolidated statements of cash flows.
Insurance Matters, Litigation and Contingencies.    In the normal course of business, we are subject to certain contractual guarantees and litigation. In addition, we maintain insurance coverage for various aspects of our business and operations. We record in our consolidated balance sheets amounts representing our estimated liability for these legal and insurance obligations. Any adjustments to these liabilities are recorded in our consolidated statements of income.
Accounts Receivable – Net.    Net accounts receivable consists of billed and unbilled accounts receivable, and allowances for doubtful accounts. Billed accounts receivable represent amounts billed to clients that have not been collected. Unbilled accounts receivable, which represent an unconditional right to payment subject only to the passage of time, include unbilled amounts typically resulting from revenue recognized but not yet billed pursuant to contract terms or billed after the period end date. Most of our unbilled receivables at October 2, 2022 are expected to be billed and collected within 12 months. Unbilled accounts receivable also include amounts related to requests for equitable adjustment to contracts that provide for price redetermination. These amounts are recorded only when they can be reliably estimated and realization is probable. The allowance for doubtful accounts represents amounts that are expected to become uncollectible or unrealizable in the future. We determine an estimated allowance for uncollectible accounts based on management's consideration of trends in the actual and forecasted credit quality of our clients, including delinquency and payment history; type of client, such as a government agency or a commercial sector client; and general economic and industry conditions that may affect our clients' ability to pay.
Contract Assets and Contract Liabilities. Contract assets represent revenue recognized in excess of the amounts for which we have the contractual right to bill our customers. Contract retentions, included in contract assets, represent amounts withheld by clients until certain conditions are met or the project is completed, which may extend beyond one year. Contract liabilities represent the amount of cash collected from clients and billings to clients on contracts in advance of work performed and revenue recognized. The majority of these amounts are expected be earned within 12 months and are classified as current liabilities.
Prepaid and other current assets.    Prepaid assets consist primarily of payments for insurance and software costs and are amortized over the estimated period of benefit. Other current assets include primarily sales/services and use tax receivables from our U.S and foreign operations.
Property and Equipment.    Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from our consolidated balance sheets and any resulting gain or loss is reflected in our consolidated statements of income. Expenditures for maintenance and repairs are expensed as incurred. Generally, estimated useful lives range from three to seven years for equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the lease term. Assets held for sale are measured at the lower of carrying amount (i.e., net book value) and fair value less cost to sell, and are reported within "Prepaid expenses and other current assets" on our consolidated balance sheets. Once assets are classified as held for sale, they are no longer depreciated.
Long-Lived Assets.   We evaluate the recoverability of our long-lived assets when the facts and circumstances suggest that the assets may be impaired. This assessment is performed based on the estimated undiscounted cash flows compared to the carrying value of the assets. If the future cash flows (undiscounted and without interest charges) are less than the carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value.
Leases. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, and current and long-term operating lease liabilities in the consolidated balance sheets. Our finance leases are reported in "Other long-term assets", "Other current liabilities" and "Other long-term liabilities" on our consolidated balance sheet.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.
We recognize a liability for contract termination costs associated with an exit activity for costs that will continue to be incurred under a lease for its remaining term without economic benefit to us, initially measured at its fair value at the cease-use date. The fair value is determined based on the remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized under the lease, and reduced by estimated sublease rentals.
Business Combinations.    The cost of an acquired company is assigned to the tangible and intangible assets purchased and the liabilities assumed based on their fair values at the date of acquisition. The determination of fair values of these assets and liabilities requires us to make estimates and use valuation techniques when a market value is not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Goodwill typically represents the value paid for the assembled workforce and enhancement of our service offerings. Transaction costs associated with business combinations are expensed as incurred.
Goodwill and Intangible Assets.    Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a business acquisition. Following an acquisition, we perform an analysis to value the acquired company's tangible and identifiable intangible assets and liabilities. With respect to identifiable intangible assets, we consider backlog, non-compete agreements, client relations, trade names, patents and other assets. We amortize our intangible assets based on the period over which the contractual or economic benefits of the intangible assets are expected to be realized. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss.
We test our goodwill for impairment on an annual basis, and more frequently when an event occurs, or circumstances indicate that the carrying value of the asset may not be recoverable. We believe the methodology that we use to review impairment of goodwill, which includes a significant amount of judgment and estimates, provides us with a reasonable basis to determine whether impairment has occurred. However, many of the factors employed in determining whether our goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes could result in future impairments.
We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our last annual review was performed at July 4, 2022 (i.e., the first day of our fiscal fourth quarter). In addition, we regularly evaluate whether events and circumstances have occurred that may indicate a potential change in recoverability of goodwill. We perform interim goodwill impairment reviews between our annual reviews if certain events and circumstances have occurred, including a deterioration in general economic conditions, an increased competitive environment, a change in management, key personnel, strategy or customers, negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. Our operating segments are the same as our reportable segments and our reporting units for goodwill impairment testing are the components one level below our reportable segments. These components constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. We aggregate components within an operating segment that have similar economic characteristics.
The impairment test for goodwill involves the comparison of the estimated fair value of each reporting unit to the reporting unit's carrying value, including goodwill. We estimate the fair value of reporting units based on a comparison and weighting of the income approach, specifically the discounted cash flow method and the market approach, which estimates the fair value of our reporting units based upon comparable market prices and recent transactions and also validates the reasonableness of the multiples from the income approach. The development of the present value of future cash flow projections includes assumptions and estimates derived from a review of our expected revenue growth rates, operating profit margins, discount rates and the terminal growth rate. If the fair value of a reporting unit exceeds its carrying amount, the goodwill of that reporting unit is not considered impaired. However, if its carrying value exceeds its fair value, our goodwill is impaired, and we are required to record a non-cash charge that could have a material adverse effect on our consolidated financial statements. An impairment loss recognized, if any, should not exceed the total amount of goodwill allocated to the reporting unit.
Contingent Consideration.    Most of our acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future operating income thresholds. The contingent earn-out arrangements are based upon our valuations of the acquired companies and reduce the risk of overpaying for acquisitions if the projected financial results are not achieved.
The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, we estimate the fair value of contingent earn-out payments as part of the initial purchase price and record the estimated fair value of contingent consideration as a liability in "Current contingent earn-out liabilities" and "Long-term contingent earn-out liabilities" on the consolidated balance sheets. We consider several factors when determining that contingent earn-out liabilities are part of the purchase price, including the following: (1) the valuation of our acquisitions is not supported solely by the initial consideration paid, and the contingent earn-out formula is a critical and material component of the valuation approach to determining the purchase price; and (2) the former owners of acquired companies that remain as key employees receive compensation other than contingent earn-out payments at a reasonable level compared with the compensation of our other key employees. The contingent earn-out payments are not affected by employment termination.
We measure our contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. We use a probability weighted discounted income approach as a valuation technique to convert future estimated cash flows to a single present value amount. The significant unobservable inputs used in the fair value measurements are operating income projections over the earn-out period (generally three or five years) and the probability outcome percentages we assign to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the contingent earn-out liability on the acquisition date is reflected as cash used in financing activities in our consolidated statements of cash flows. Any amount paid in excess of the contingent earn-out liability on the acquisition date is reflected as cash used in operating activities in our consolidated statements of cash flows.
We review and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Changes in the estimated fair value of our contingent earn-out liabilities related to the time component of the present value calculation are reported in interest expense. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income.
Other current liabilities.    Other current liabilities consists primarily of accrued insurance, contingent liabilities, sales/services and use taxes due to our U.S. and foreign operations, other tax accruals and accrued professional fees.
Fair Value of Financial Instruments.    We determine the fair values of our financial instruments, including short-term investments, debt instruments, derivative instruments and pension plan assets based on inputs or assumptions that market participants would use in pricing an asset or a liability. We categorize our instruments using a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair values based on their short-term nature. The carrying amounts of our revolving credit facility approximates fair value because the interest rates are based upon variable reference rates. Certain other assets and liabilities, such as contingent earn-out liabilities and amounts related to cash-flow hedges, are required to be carried in our consolidated financial statements at fair value.
Our fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.
Derivative Financial Instruments.    We account for our derivative instruments as either assets or liabilities and carry them at fair value. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income in stockholders' equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in current income. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions.
The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure generated by the re-measurement of certain assets and liabilities denominated in a non-functional currency in a foreign operation is reported in the same manner as a foreign currency translation adjustment. Accordingly, any gains or losses related to these derivative instruments are recognized in current income. Derivatives that do not qualify as hedges are adjusted to fair value through current income.
Deferred Compensation. We maintain a non-qualified defined contribution supplemental retirement plan for certain key employees and non-employee directors that is accounted for in accordance with applicable authoritative guidance on accounting for deferred compensation arrangements where amounts earned are held in a rabbi trust and invested. Employee deferrals are deposited into a rabbi trust, and the funds are generally invested in individual variable life insurance contracts that we own and are specifically designed to informally fund savings plans of this nature. Our consolidated balance sheets reflect our investment in variable life insurance contracts in "Other long-term assets." Our obligation to participating employees is reflected in "Other long-term liabilities." The net gains and losses related to the deferred compensation plan are reported as part of “Selling, general and administrative expenses” in our consolidated statements of income.
Pension Plan.    We assumed a defined benefit pension plan from a fiscal 2021 acquisition. We calculate the market-related value of assets, which is used to determine the return-on-assets component of annual pension expense and the cumulative net unrecognized gain or loss subject to amortization. This calculation reflects our anticipated long-term rate of return and amortization of the difference between the actual return (including capital, dividends, and interest) and the expected return. Cumulative net unrecognized gains or losses that exceed 10% of the greater of the projected benefit obligation or the fair market related value of plan assets are subject to amortization.
Income Taxes.    We file a consolidated U.S. federal income tax return. In addition, we file other returns that are required in the states, foreign jurisdictions and other jurisdictions in which we do business. We account for certain income and expense items differently for financial reporting and income tax purposes. Deferred tax assets and liabilities are computed for the difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to reverse. In determining the need for a valuation allowance, management reviews both positive and negative evidence, including current and historical results of operations, future income projections, scheduled reversals of deferred tax amounts, availability of carrybacks and potential tax planning strategies. Based on our assessment, we have concluded that a portion of the deferred tax assets will not be realized.
According to the authoritative guidance on accounting for uncertainty in income taxes, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from
such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. This guidance also addresses de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and disclosure requirements for uncertain tax positions.
Concentration of Credit Risk.    Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents and net accounts receivable. In the event that we have surplus cash, we place our temporary cash investments with lower risk financial institutions and, by policy, limit the amount of investment exposure to any one financial institution. Approximately 23% of accounts receivable were due from various agencies of the U.S. federal government at fiscal 2022 year-end. The remaining accounts receivable are generally diversified due to the large number of organizations comprising our client base and their geographic dispersion. We perform ongoing credit evaluations of our clients and maintain an allowance for potential credit losses. Approximately 48%, 21% and 31% of our fiscal 2022 revenue was generated from our U.S. government, U.S. commercial and international clients, respectively.
Foreign Currency Translation.    We determine the functional currency of our foreign operating units based upon the primary currency in which they operate. These operating units maintain their accounting records in their local currency, primarily Canadian and Australian dollars and British pounds. Where the functional currency is not the U.S. dollar, translation of assets and liabilities to U.S. dollars is based on exchange rates at the balance sheet date. Translation of revenue and expenses to U.S. dollars is based on the average rate during the period. Translation gains or losses are reported as a component of other comprehensive income. Gains or losses from foreign currency transactions are included in income from operations.
Reclassifications.    Certain reclassifications were made to the prior fiscal years to conform to the current-year presentation.
Recently Issued Accounting Pronouncements Adopted in Fiscal 2022.
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and amending certain existing guidance for clarity. We adopted this guidance in the first quarter of fiscal 2022, and the adoption did not have an impact on our consolidated financial statements.
In May 2020, the Securities and Exchange Commission issued guidance amending certain financial disclosures about acquired and disposed businesses. The amendments are designed to assist registrants in making more meaningful determinations of whether a subsidiary or an acquired or disposed business is significant, and to improve the related disclosure requirements. We adopted this guidance in the first quarter of fiscal 2022, and the adoption did not have an impact on our consolidated financial statements.
In October 2021, the FASB issued ASU 2021-08, which requires the recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606"). Considerations to determine the amount of contract assets and contract liabilities to record at the acquisition date include the terms of the acquired contract, such as timing of payment, identification of each performance obligation in the contract and allocation of the contract transaction price to each identified performance obligation on a relative standalone selling price basis as of contract inception. ASU 2021-08 is effective for us beginning in the first quarter of fiscal 2023. ASU 2021-08 should be applied prospectively for acquisitions occurring on or after the effective date of the amendments. Early adoption of the proposed amendments would be permitted, including adoption in an interim period. We adopted this guidance in the first quarter of fiscal 2022, and the adoption did not have an impact on our consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted.
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires disclosures for transactions with a government authority that are accounted for by applying a grant or contribution model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity's financial statements. ASU 2021-10 is effective for us beginning in the first quarter of fiscal 2023, with early adoption permitted. This guidance should be applied prospectively to all transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after that date, or retrospectively.
In fiscal 2020, the Canadian federal government implemented the Canadian Emergency Wage Subsidy ("CEWS") program in response to the negative impact of the coronavirus disease 2019 ("COVID-19") pandemic on businesses operating in Canada. Our Canadian legal entities qualified for and applied for these CEWS cash benefits to partially offset the impacts of revenue reductions and on-going staffing costs. The $26.0 million total received was initially recorded in "Other current liabilities" until all potential amendments to the qualification criteria, including some that were proposed with retroactive application, were finalized in fiscal 2022. As there are no further contingencies, beginning in fiscal 2023, the amounts received will be distributed to all Canadian employees. We expect to distribute approximately $9 million in the next twelve months. Accordingly, this amount was reclassified from "Other current liabilities" to "Accrued compensation" on our consolidated balance sheet as of October 2, 2022. The remaining $17.0 million, which we expect to distribute beyond one year, was reclassified to "Other long-term liabilities". We do not expect there will be any related impact to our operating income, and we have no outstanding applications for further government assistance.
v3.22.2.2
Revenue and Contract Balances
 12 Months Ended
Oct. 02, 2022
Revenue from Contract with Customer [Abstract]  
Revenue and Contract Balances Revenue and Contract Balances
We recognize revenue over time as the related performance obligation is satisfied by transferring control of a promised good or service to our customers. Progress toward complete satisfaction of the performance obligation is primarily measured using a cost-to-cost measure of progress method. The cost input is based primarily on contract cost incurred to date compared to total estimated contract cost. This measure includes forecasts based on the best information available and reflects our judgement to faithfully depict the value of the services transferred to the customer. For certain on-call engineering or consulting and similar contracts, we recognize revenue in the amount which we have the right to invoice the customer if that amount corresponds directly with the value of our performance completed to date.
Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost measure of progress method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs indicates a loss, a provision for the entire estimated loss on the contract is made in the period in which the loss becomes evident.
Disaggregation of Revenue
We disaggregate revenue by client sector and contract type, as we believe it best depicts how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. The following tables present revenue disaggregated by client sector and contract type:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27, 2020
 (in thousands)
Client Sector:
U.S. federal government (1)
$1,064,347 $1,081,608 $993,835 
U.S. state and local government603,286 536,309 439,019 
U.S. commercial748,953 638,169 674,605 
International (2)
1,087,462 957,427 887,432 
Total$3,504,048 $3,213,513 $2,994,891 
Contract Type:
Fixed-price$1,317,993 $1,191,244 $1,078,432 
Time-and-materials1,637,019 1,492,813 1,391,592 
Cost-plus549,036 529,456 524,867 
Total$3,504,048 $3,213,513 $2,994,891 
(1) Includes revenue generated under U.S. federal government contracts performed outside the United States.
(2) Includes revenue generated from foreign operations, primarily in Canada, Australia, the United Kingdom and revenue generated from non-U.S. clients.
Other than the U.S. federal government, no single client accounted for more than 10% of our revenue for fiscal 2022 and 2021.
Contract Assets and Contract Liabilities
We invoice customers based on the contractual terms of each contract. However, the timing of revenue recognition may differ from the timing of invoice issuance.
Contract assets represent revenue recognized in excess of the amounts for which we have the contractual right to bill our customers. Such amounts are recoverable from customers based upon various measures of performance, including achievement of certain milestones or completion of a contract. In addition, many of our time and materials arrangements are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Contract retentions, included in contract assets, represent amounts withheld by clients until certain conditions are met or the project is completed, which may extend beyond one year.
Contract liabilities consist of billings in excess of revenue recognized. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and increase as billings in advance of revenue recognition occur. Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. There were no substantial non-current contract assets or liabilities for the periods presented. Net contract liabilities consisted of the following:
Balance at
October 2,
2022		October 3, 2021
(in thousands)
Contract assets (1)
$92,405 $103,784 
Contract liabilities241,340 190,403 
Net contract liabilities$(148,935)$(86,619)
(1) Includes $23.3 million and $12.2 million of contract retentions as of October 2, 2022 and October 3, 2021, respectively.
In fiscal 2022, we recognized revenue of approximately $125 million from amounts included in the contract liability balance at the end of fiscal 2021, compared to approximately $119 million in fiscal 2021.
We recognize revenue primarily using the cost-to-cost measure of progress method to estimate progress towards completion. Changes in those estimates could result in the recognition of cumulative catch-up adjustments to the contract’s inception-to-date revenue, costs and profit in the period in which such changes are made. The corresponding net revenue and operating income adjustments were immaterial for fiscal 2022 and 2021.
Changes in revenue and cost estimates could also result in a projected loss, determined at the contract level, which would be recorded immediately in earnings. As of October 2, 2022 and October 3, 2021, our consolidated balance sheets included liabilities for anticipated losses of $10.0 million and $12.7 million, respectively. The estimated cost to complete these related contracts as of October 2, 2022 and October 3, 2021 was approximately $80 million and $104 million, respectively.
Accounts Receivable, Net
Net accounts receivable consisted of the following:
Balance at
October 2,
2022		October 3,
2021
(in thousands)
Billed$491,700 $432,814 
Unbilled267,161 240,536 
Total accounts receivable758,861 673,350 
Allowance for doubtful accounts(3,749)(4,352)
Total accounts receivable, net$755,112 $668,998 
Billed accounts receivable represent amounts billed to clients that have not been collected. Unbilled accounts receivable, which represent an unconditional right to payment subject only to the passage of time, include unbilled amounts typically resulting from revenue recognized but not yet billed pursuant to contract terms or billed after the period end date. Substantially all of our unbilled receivables at October 2, 2022 are expected to be billed and collected within 12 months. The
allowance for doubtful accounts represents amounts that are expected to become uncollectible or unrealizable in the future. We determine an estimated allowance for uncollectible accounts based on management's consideration of trends in the actual and forecasted credit quality of our clients, including delinquency and payment history; type of client, such as a government agency or a commercial sector client; and general economic and industry conditions, including the potential impacts of the COVID-19 pandemic, that may affect our clients' ability to pay.
Claims are amounts in excess of agreed contract prices that we seek to collect from our clients or other third parties for delays, errors in specifications and designs, contract terminations, change orders in dispute or unapproved as to both scope and price or other causes of unanticipated additional costs. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regards to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in our performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. This can lead to a situation in which costs are recognized in one period and revenue is recognized in a subsequent period when a client agreement is obtained or a claims resolution occurs. Total accounts receivable at October 3, 2021 included approximately $11 million related to claims, including requests for equitable adjustment, on contracts that provide for price redetermination. This amount related to a single claim in our RCM reportable segment. In May 2022, we received a cash settlement for the claim, which resulted in an immaterial gain in the third quarter of fiscal 2022. There were no claims included in our total accounts receivable at October 2, 2022.
We regularly evaluate all unsettled claim amounts and record appropriate adjustments to revenue when it is probable that the claim will result in a different contract value than the amount previously estimated. In fiscal 2022, we recorded no gains or losses related to claims other than the aforementioned immaterial gain on the settled RCM claim. In fiscal 2021 (all in the second quarter), we recognized increases to revenue and related gains of $2.8 million in our CIG reportable segment.
No single client accounted for more than 10% of our accounts receivable at October 2, 2022 and October 3, 2021.
Remaining Unsatisfied Performance Obligations (“RUPOs”)
Our RUPOs represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. We had $3.7 billion of RUPOs as of October 2, 2022. RUPOs increase with awards from new contracts or additions on existing contracts and decrease as work is performed and revenue is recognized on existing contracts. RUPOs may also decrease when projects are canceled or modified in scope. We include a contract within our RUPOs when the contract is awarded and an agreement on contract terms has been reached.
We expect to satisfy our RUPOs as of October 2, 2022 over the following periods:
Amount
(in thousands)
Within 12 months$2,394,090 
Beyond 1,327,544 
Total $3,721,634 
Although RUPOs reflect business that is considered to be firm, cancellations, deferrals or scope adjustments may occur. RUPOs are adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate. Our operations and maintenance contracts can generally be terminated by the clients without a substantive financial penalty. Therefore, the remaining performance obligations on such contracts are limited to the notice period required for the termination (usually 30, 60 or 90 days).
v3.22.2.2
Stock Repurchase and Dividends
 12 Months Ended
Oct. 02, 2022
Stock Repurchase And Dividends [Abstract]  
Stock Repurchase and Dividends Stock Repurchase and DividendsOn October 5, 2021, our Board of Directors authorized a new stock repurchase program under which we could repurchase up to $400 million of our common stock in addition to the $147.8 million under the previous stock repurchase program at October 3, 2021. In fiscal 2022, we repurchased and settled 1,341,679 shares with an average price of $149.07 per share for a total cost of $200.0 million in the open market. As of October 2, 2022, we had a remaining balance of $347.8 million under our repurchase program.
The following table presents dividends declared and paid in fiscal 2022 and 2021:
Declare DateDividend Paid Per ShareRecord DatePayment DateDividends Paid
(in thousands)
November 15, 2021$0.20 December 2, 2021December 20, 2021$10,793 
January 31, 2022$0.20 February 11, 2022February 25, 202210,769 
May 2, 2022$0.23 May 13, 2022May 27, 202212,311 
August 1, 2022$0.23 August 12, 2022August 26, 202212,226 
Total dividends paid as of October 2, 2022$46,099 
November 9, 2020$0.17 November 30, 2020December 11, 2020$9,198 
January 25, 2021$0.17 February 10, 2021February 26, 20219,212 
April 26, 2021$0.20 May 12, 2021May 28, 202110,831 
July 26, 2021$0.20 August 20, 2021September 3, 202110,800 
Total dividends paid as of October 3, 2021$40,041 
Subsequent Events. On November 7, 2022, our Board of Directors declared a quarterly cash dividend of $0.23 per share payable on December 9, 2022 to stockholders of record as of the close of business on November 21, 2022.
v3.22.2.2
Acquisitions
 12 Months Ended
Oct. 02, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
On September 23, 2022, we made an all cash offer to acquire all the outstanding shares of RPS Group plc ("RPS"), a publicly traded company on the London Stock Exchange for 222 pence per share, which was unanimously recommended by RPS's Board of Directors. RPS employs approximately 5,000 associates in the United Kingdom, Europe, Asia Pacific and North America, delivering high-end solutions especially in energy transformation, water and program management for government and commercial clients. The transaction is to be affected using a court sanctioned scheme of arrangement between RPS and its shareholders and is subject to certain regulatory approvals and approval by RPS shareholders.
Subsequent Event. On November 3, 2022, RPS's shareholders approved the scheme of arrangement, with the acquisition expected to be closed and effective in January 2023 after regulatory and court approval with an all cash purchase price for 100% of the outstanding shares of approximately GBP 636 million.
In fiscal 2022, we acquired The Integration Group of America ("TIGA"), Piteau Associates (“PAE”) and two other immaterial acquisitions. TIGA is based in Spring, Texas and is an industry leader in process automation and system integration solutions, including customized software and platform (SaaS/PaaS) applications, advanced data analytics, cloud data integration and platform virtualization. PAE is based in Vancouver, British Columbia and is a global leader in sustainable natural resource analytics including hydrologic numerical modeling and dewatering system design. PAE is part of our CIG segment, and TIGA and other immaterial acquisitions are part of our GSG segment. The total fair value of the purchase price for all four acquisitions was $88.3 million. This amount is comprised of $44.0 million in initial cash payments made to the sellers, $2.5 million of receivables (net) related to estimated post-closing adjustments for the net assets acquired, $15.5 million payable in a promissory note issued to the sellers along with related transaction expenses of the sellers (which were subsequently paid in July 2022) and $31.3 million for the estimated fair value of contingent earn-out obligations, with a maximum of $47.0 million, based upon the achievement of specified operating income targets in each of the three to five years following the acquisitions.
In fiscal 2021, we acquired Coanda Research and Development Corporation ("CRD"), The Kaizen Company (“KZN”), IBRA-RMAC Automation Solutions (“IRM”) and Hoare Lea, LLP and Subsidiaries ("HLE"). CRD is based in Burnaby, British Columbia and provides world-class expertise in computational fluid dynamics and utilizes industry-leading capabilities to solve complex engineering science problems for commercial customers, across a broad range of industries. KZN is based in Washington, D.C. and provides international development advisory and management consulting services offering a suite of innovative tools that support advanced solutions in health, education, governance, peace and stability and sustainable economic growth. IRM is based in San Diego, California and provides digital water transformation consulting services and an innovative suite of tools to address complex water system modernization challenges. HLE is a leader in sustainable engineering design based in Bristol, United Kingdom. It was established in 1862 and is an award-winning high-end consultancy firm in the United Kingdom, with more than 900 employees, providing innovative solutions to complex engineering and design challenges for sustainable infrastructure and high performance buildings. CRD and HLE are part of our CIG segment, and KZN and IRM are part of our GSG segment. The total fair value of the purchase price for these acquisitions was $151.7 million. This amount was comprised of $101.4 million in initial cash payments made to the sellers and $50.3 million for the estimated fair value of contingent earn-out obligations, with a maximum of $74.0 million, based upon the achievement of specified operating income targets in each of the three to four years following the acquisitions.
In fiscal 2020, we acquired Segue Technologies, Inc. ("SEG"), a leading information technology management consulting firm based in Arlington, Virginia, and BlueWater Federal Solutions, Inc. ("BWF"), a leading information technology management consulting firm based in Chantilly, Virginia. Both of these acquisitions are part of our GSG segment. The total fair value of the purchase price for these two acquisitions was $88.6 million. This amount was comprised of $71.4 million in initial cash payments made to the sellers, $0.7 million of payables related to estimated post-closing adjustments for net assets acquired and $16.5 million for the estimated fair value of contingent earn-out obligations, with a maximum of $28.0 million, based upon the achievement of specified operating income targets in each of the three years following the acquisitions.
Goodwill additions resulting from fiscal 2022 business combinations are primarily attributable to the significant technical expertise residing in embedded workforces that are sought out by clients, long-term management experience, the industry reputations and the synergies expected to arise after the acquisitions in the areas of data management, digitization, modeling, water and natural resources. The fiscal 2021 goodwill additions represent the significant technical expertise residing in embedded workforces that are sought out by clients and the long-standing reputation of HLE. The fiscal 2020 goodwill additions represent the value of a workforce with distinct expertise in the high-end information technology field, in the areas of data analytics, modeling and simulation, cloud and agile software development. In addition, these acquired capabilities, when combined with our existing global consulting and engineering business, result in opportunities that allow us to provide services under contracts that could not have been pursued individually by either us or the acquired companies. The results of these acquisitions were included in our consolidated financial statements from their respective closing dates. These acquisitions were not considered material, individually or in the aggregate, to our consolidated financial statements. As a result, no pro forma information has been provided.
Backlog and client relations intangible assets include the fair value of existing contracts and the underlying customer relationships with lives ranging from one to ten years, and trade names intangible assets have lives ranging from three to five years.
Most of our acquisition agreements include contingent earn-out agreements, which are generally based on the achievement of future operating income thresholds. The contingent earn-out arrangements are based on our valuations of the acquired companies and reduce the risk of overpaying for acquisitions if the projected financial results are not achieved. The fair values of any earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, we estimate the fair value of contingent earn-out payments as part of the initial purchase price and record the estimated fair value of contingent consideration as a liability in “Current contingent earn-out liabilities” and “Long-term contingent earn-out liabilities” on the consolidated balance sheets. We consider several factors when determining that contingent earn-out liabilities are part of the purchase price, including the following: (1) the valuation of our acquisitions is not supported solely by the initial consideration paid, and the contingent earn-out formula is a critical and material component of the valuation approach to determining the purchase price; and (2) the former owners of acquired companies that remain as key employees receive compensation other than contingent earn-out payments at a reasonable level compared with the compensation of our other key employees. The contingent earn-out payments are not affected by employment termination.
We measure our contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. We use a probability-weighted discounted income approach as a valuation technique to convert future estimated cash flows to a single present value amount. The significant unobservable inputs used in the fair value measurements are operating income projections over the earn-out period (generally three or five years) and the probability outcome percentages we assign to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the contingent earn-out liability on the acquisition date is reflected as cash used in financing activities in our consolidated statements of cash flows. Any amount paid in excess of the contingent earn-out liability on the acquisition date is reflected as cash used in operating activities in our consolidated statements of cash flows.
We review and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Changes in the estimated fair value of our contingent earn-out liabilities related to the time component of the present value calculation are reported in interest expense. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. In each quarter during fiscal 2022, we evaluated our estimates for contingent consideration liabilities for the remaining earn-out periods for each individual acquisition, which included a review of their financial results to-date, the status of ongoing projects in their RUPOs and the inventory of prospective new contract awards.
In fiscal 2022, total adjustments to our contingent earn-out liabilities in operating income were immaterial.
In fiscal 2021, we recorded adjustments to our contingent earn-out liabilities and reported a net gain in operating income of $3.3 million, substantially all in the fourth quarter. These adjustments resulted from the updated valuations of the contingent consideration liabilities, which reflect updated projections of acquired companies' financial performance during their respective earn-out periods.
In fiscal 2020, we recorded adjustments to our contingent earn-out liabilities and reported related net gains in operating income of $15.0 million, substantially all in the fourth quarter. These gains primarily resulted from updated valuations of the contingent consideration liabilities for Norman, Disney and Young ("NDY"), eGlobalTech ("EGT") and SEG.
The acquisition agreement for NDY included a contingent earn-out agreement based on the achievement of operating income thresholds (in Australian dollars) in each of the first three years beginning on the acquisition date, which was in the second quarter of fiscal 2018. The maximum earn-out obligation over the three-year earn-out period was A$25 million (A$7.4 million in year one, and A$8.8 million each in years two and three). These amounts could be earned primarily on a pro-rata basis for operating income within a predetermined range in each year. NDY was required to meet a minimum operating income threshold in each year to earn any contingent consideration.
The determination of the fair value of the purchase price for NDY on the acquisition date included our estimate of the fair value of the related contingent earn-out obligation. The initial valuation was primarily based on probability-weighted internal estimates of NDY's operating income during each earn-out period. Based on these estimates, we calculated an initial fair value at the acquisition date of A$9.4 million for NDY's contingent earn-out liability in the second quarter of fiscal 2018. In determining that NDY would earn 38% of the maximum potential earn-out, we considered several factors including NDY's recent historical revenue and operating income levels and growth rates. We also considered the recent trend in NDY's backlog level.
NDY's actual financial performance in the first two earn-out periods exceeded our original estimates at the acquisition date. As a result, we increased the related contingent consideration liability and recognized losses of $2.1 million (A$3.0 million) and $5.4 million (A$7.9 million) in fiscal 2018 and 2019, respectively. In the fourth quarter of fiscal 2020, we evaluated our estimate of NDY’s contingent consideration liability for the third and final earn-out period. This assessment included a review of NDY’s actual and forecasted results for the third earn-out period, which included an evaluation of the status of ongoing projects in NDY’s backlog, the inventory of prospective new contract awards and the impact of the COVID-19 pandemic on the Australian economy and NDY's operations. As a result of this assessment, we concluded that NDY’s operating income in the third earn-out period would be lower than previously estimated, and we reduced NDY’s contingent earn-out liability to $1.8 million (A$2.6 million), which resulted in a gain of $3.7 million (A$5.2 million).
The acquisition agreement for EGT included a contingent earn-out agreement based on the achievement of operating income thresholds in each of the first three years beginning on the acquisition date, which was in the second quarter of fiscal 2019. The maximum earn-out obligation over the three-year earn-out period was $25 million ($8.5 million in year one, $9.0 million in year two and $7.5 million in year three). In each of the first two earn-out years, EGT was to receive a portion of the contingent consideration if EGT achieved a minimum operating income threshold. The remaining contingent consideration could be earned primarily on a pro-rata basis for operating income within a predetermined range in each year. EGT was required to meet a minimum operating income threshold in each year to earn any of this contingent consideration.
The determination of the fair value of the purchase price for EGT on the acquisition date included our estimate of the fair value of the related contingent earn-out obligation. The initial valuation was primarily based on probability-weighted internal estimates of EGT's operating income during each earn-out period. Based on these estimates, we calculated an initial fair value at the acquisition date of $21.1 million for EGT's contingent earn-out liability in the second quarter of fiscal 2019. In determining that EGT would earn 84% of the maximum potential earn-out, we considered several factors including EGT's recent historical revenue and operating income levels and growth rates. We also considered the recent trend in EGT's backlog level and the prospects for the U.S. federal information technology market.
In the third quarter of fiscal 2020, EGT achieved and was paid the maximum earn-out obligation for the first earn-out period. Subsequently, we evaluated our estimate of EGT’s contingent consideration liability for the second and third earn-out periods. This assessment included a review of EGT’s actual and forecasted results for the second and third earn-out periods, which included an evaluation of the status of ongoing projects in EGT’s backlog and the inventory of prospective new contract awards. As a result of this assessment, we concluded that EGT's operating income in the second and third earn-out period would be lower than previously estimated. Accordingly, in the fourth quarter of fiscal 2020, we reduced EGT’s contingent earn-out liability to $7.5 million, which resulted in a gain of $4.7 million.
The acquisition agreement for SEG included a contingent earn-out agreement based on the achievement of operating income thresholds in each of the first three years beginning on the acquisition date, which was in the second quarter of fiscal 2020. The maximum earn-out obligation over the three-year earn-out period was $20 million ($5.0 million, $7.0 million and $8.0 million for years one, two and three, respectively). SEG was to receive a portion of the contingent consideration if SEG achieved a minimum operating income threshold in each year of the earn-out period. The remaining contingent consideration
could be earned primarily on a pro-rata basis for operating income within a predetermined range in each year. SEG was required to meet a minimum operating income threshold in each year to earn any of this contingent consideration.
The determination of the fair value of the purchase price for SEG on the acquisition date included our estimate of the fair value of the related contingent earn-out obligation. The initial valuation was primarily based on probability-weighted internal estimates of SEG's operating income during each earn-out period. Based on these estimates, we calculated an initial fair value at the acquisition date of $11.3 million for SEG's contingent earn-out liability in the second quarter of fiscal 2020. In determining that SEG would earn 57% of the maximum potential earn-out, we considered several factors including SEG's recent historical revenue and operating income levels and growth rates. We also considered the recent trend in SEG's backlog level and the prospects for the U.S. federal information technology market.
SEG’s actual financial performance in the first earn-out period on a year to date basis was below our original expectation at the acquisition date. As a result, in the fourth quarter of fiscal 2020, we evaluated our estimate of SEG’s contingent consideration liability for all earn-out periods. This assessment included a review of SEG’s financial results in the first earn-out period, the status of ongoing projects in SEG’s backlog, the inventory of prospective new contract awards and future synergies with other Tetra Tech operating units. As a result of this assessment, we concluded that SEG’s operating income in all earn-out periods would be lower than originally anticipated. Accordingly, in the fourth quarter of fiscal 2020, we reduced the SEG contingent earn-out liability to $8.1 million, which resulted in a gain of $3.4 million.
At October 2, 2022, there was a total potential maximum of $120.9 million of outstanding contingent consideration related to acquisitions. Of this amount, $65.6 million was estimated as the fair value and accrued on our consolidated balance sheet.
The following table summarizes the changes in the carrying value of estimated contingent earn-out liabilities:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Beginning balance$59,297 $32,617 $52,992 
Acquisition date fair value of contingent earn-out liabilities31,341 50,235 16,581 
Change in fair value of contingent earn-out liabilities2,184 992 1,162 
Re-measurement of contingent earn-out liabilities329 (3,273)(14,971)
Foreign exchange impact(7,152)(596)(247)
Earn-out payments:   
Reported as cash used in operating activities(310)(427)— 
Reported as cash used in financing activities(20,123)(20,251)(22,900)
Ending balance $65,566 $59,297 $32,617 
v3.22.2.2
Goodwill and Intangible Assets
 12 Months Ended
Oct. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The following table summarizes the changes in the carrying value of goodwill:
GSGCIGTotal
 (in thousands)
Balance at September 27, 2020$516,315 $477,183 $993,498 
Acquisitions15,112 75,479 90,591 
Translation and other7,006 17,483 24,489 
Balance at October 3, 2021538,433 570,145 1,108,578 
Goodwill reallocation(51,497)51,497 — 
Acquisitions42,365 26,318 68,683 
Translation and other(10,199)(56,650)(66,849)
Balance at October 2, 2022$519,102 $591,310 $1,110,412 
Our goodwill balances reflect the goodwill reallocation related to the creation of our new HPB division on the first day of fiscal 2022, which included a transfer of some related operations in our GSG reportable segment to our CIG reportable segment. The foreign currency translation adjustments resulted from our foreign subsidiaries with functional currencies that are different than our reporting currency. The goodwill additions relate to our fiscal 2022 acquisitions. The purchase price allocations for our fiscal 2022 acquisitions are preliminary and subject to adjustment based upon the final determinations of the net assets acquired and information to perform the final valuations.
We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our last review at July 4, 2022 (i.e. the first day of our fourth quarter in fiscal 2022) indicated that we had no impairment of goodwill, and all of our reporting units had estimated fair values that were in excess of their carrying values, including goodwill. As of July 4, 2022, and after the reallocation of goodwill on the first day of fiscal 2022, we had no reporting units that had estimated fair values that exceeded their carrying values by less than 165%.
We also regularly evaluate whether events and circumstances have occurred that may indicate a potential change in the recoverability of goodwill. We perform interim goodwill impairment reviews between our annual reviews if certain events and circumstances have occurred, such as a deterioration in general economic conditions; an increase in the competitive environment; a change in management, key personnel, strategy or customers; negative or declining cash flows; or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. Although we believe that our estimates of fair value for these reporting units are reasonable, if financial performance for these reporting units falls significantly below our expectations or market prices for similar business decline, the goodwill for these reporting units could become impaired.
The gross amounts of goodwill for GSG were $536.8 million and $556.1 million at fiscal 2022 and 2021 year-ends, respectively, excluding accumulated impairment of $17.7 million for each period. The gross amounts of goodwill for CIG were $712.8 million and $691.6 million at fiscal 2022 and 2021 year-ends, respectively, excluding accumulated impairment of $121.5 million for each period.
The following table presents the gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in "Intangible assets, net" on the consolidated balance sheets:
Fiscal Year Ended
October 2, 2022October 3, 2021
Weighted-
Average
Remaining
Life
(in years)		Gross
Amount		Accumulated
Amortization		Net
Amount		Gross
Amount		Accumulated
Amortization		Net
Amount
($ in thousands)
Client relations5.5$41,676 $(21,092)$20,584 $69,455 $(43,984)$25,471 
Backlog0.633,286 (29,990)3,296 34,577 (30,670)3,907 
Technology and trade names3.712,711 (7,428)5,283 14,939 (6,327)8,612 
Total $87,673 $(58,510)$29,163 $118,971 $(80,981)$37,990 
Amortization expense for the identifiable intangible assets for fiscal 2022, 2021 and 2020 was $13.2 million, $11.5 million and $11.6 million, respectively. Foreign currency translation adjustments reduced net identifiable intangible assets by $5.3 million in fiscal 2022 and were immaterial for fiscal 2021.
Estimated amortization expense for the succeeding five fiscal years and beyond is as follows:
 Amount
 (in thousands)
2023$9,788 
20245,244 
20254,411 
20263,590 
20272,168 
Beyond3,962 
Total$29,163 
v3.22.2.2
Property and Equipment
 12 Months Ended
Oct. 02, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021
 (in thousands)
Equipment, furniture and fixtures$96,710 $94,780 
Leasehold improvements32,428 36,462 
Total property and equipment129,138 131,242 
Accumulated depreciation(96,822)(93,509)
Property and equipment, net$32,316 $37,733 
The depreciation expense related to property and equipment was $13.9 million, $12.3 million and $13.0 million for fiscal 2022, 2021 and 2020, respectively.
v3.22.2.2
Income Taxes
 12 Months Ended
Oct. 02, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income before income taxes, by geographic area, was as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Income before income taxes:   
United States$262,428 $211,222 $209,443 
Foreign86,338 55,648 18,548 
Total income before income taxes$348,766 $266,870 $227,991 
Income tax expense consisted of the following:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
  (in thousands) 
Current:   
Federal$47,447 $41,056 $24,102 
State9,613 9,893 6,872 
Foreign26,332 18,887 20,398 
Total current income tax expense83,392 69,836 51,372 
Deferred: 
Federal(424)(6,034)2,187 
State(382)(2,060)870 
Foreign3,016 (27,703)(328)
Total deferred income tax expense (benefit) 2,210 (35,797)2,729 
Total income tax expense$85,602 $34,039 $54,101 
Total income tax expense was different from the amount computed by applying the U.S. federal statutory rate to pre-tax income as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
Tax at federal statutory rate21.0%21.0%21.0%
State taxes, net of federal benefit2.12.32.7
Research and Development ("R&D") credits(1.0)(2.6)(2.2)
Tax differential on foreign earnings1.00.90.7
Non-taxable foreign interest income—(1.0)(1.1)
Goodwill——1.5
Stock compensation(2.0)(3.3)(2.2)
Valuation allowance0.2(9.3)1.6
Change in uncertain tax positions(1.1)1.70.4
Return to provision1.4(3.7)0.8
Disallowed officer compensation1.92.00.2
Cash repatriation0.12.1—
Unremitted earnings(0.2)1.0—
Deferred tax adjustments0.10.8(1.3)
Other1.00.91.6
Total income tax expense24.5%12.8%23.7%
The effective tax rates for fiscal 2022, 2021 and 2020 were 24.5%, 12.8% and 23.7%, respectively. The fiscal 2021 effective tax rate reflects a non-recurring net tax benefit of $21.6 million, consisting of a valuation allowance in the United Kingdom that was released due to sufficient positive evidence being obtained in fiscal 2021. The valuation allowance was primarily related to net operating loss carry-forwards. We evaluated the positive evidence against any negative evidence and determined that it was more likely than not that the deferred tax assets would be realized. The primary factors used to assess the likelihood of realization were the past performance of the related entity and our forecast of future taxable income. In fiscal 2021, we repatriated approximately $80 million from Canada and recognized a related tax expense of $5.6 million. At that time, we also determined that our remaining undistributed earnings in Canada of approximately $20.1 million were no longer being indefinitely reinvested and recorded an additional deferred tax liability/expense of $3.1 million. The goodwill impairment
charge in fiscal 2020 did not have related tax benefits. Also, income tax expense was reduced by $10.3 million, $12.9 million and $8.3 million of excess tax benefits on share-based payments in fiscal 2022, 2021 and 2020, respectively.
Excluding the impact of the valuation allowance release, the non-deductible goodwill impairment charge, the Canadian repatriation and the excess tax benefits on share-based payments our effective tax rates in fiscal 2022, 2021 and 2020 were 27.5%, 25.7% and 25.6% respectively.
In fiscal 2022, the Inflation Reduction Act and the CHIPS and Science Act were signed into law. These Acts both contain new U.S. income tax provisions; however, we do not expect them to have a material impact on our consolidated financial statements.
We are currently under examination by the Internal Revenue Service for fiscal years 2018 and 2019, and the Canada Revenue Agency for fiscal years 2011 through 2016. We are also subject to various other state audits.
Temporary differences comprising the net deferred income tax asset shown on the accompanying consolidated balance sheets were as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021
 (in thousands)
Deferred Tax Assets:  
State taxes$1,238 $1,342 
Reserves and contingent liabilities5,023 6,662 
Accounts receivable including the allowance for doubtful accounts4,986 5,917 
Accrued liabilities35,973 41,657 
Lease liabilities, operating leases49,618 60,181 
Stock-based compensation2,925 3,560 
Unbilled revenue4,885 — 
Loss carry-forwards41,648 54,825 
Valuation allowance(12,286)(13,040)
Total deferred tax assets134,010 161,104 
Deferred Tax Liabilities: 
Unbilled revenue— (5,595)
Prepaid expense(6,065)(8,136)
Right-of-use assets, operating leases(49,618)(60,181)
Intangibles(42,863)(40,121)
Undistributed earnings(2,200)(3,136)
Property and equipment(621)(85)
Total deferred tax liabilities(101,367)(117,254)
Net deferred tax assets$32,643 $43,850 
Prospectively, from the date of the aforementioned repatriation, our earnings in Canada are not considered indefinitely reinvested and any potential tax liability that would be incurred upon repatriation is recognized currently with the related income. At October 2, 2022, undistributed earnings of our other foreign subsidiaries, primarily in Australia and the United Kingdom of approximately $81.7 million are expected to be indefinitely reinvested in these foreign countries. Accordingly, no provision for foreign withholding taxes has been made. Assuming the indefinitely reinvested foreign earnings were repatriated under the laws and rates applicable at October 2, 2022, the incremental taxes applicable to those earnings would not be material.
At October 2, 2022, we had available unused state net operating loss ("NOL") carry forwards of $43.7 million that expire at various dates from 2026 to 2037; and available foreign NOL carry forwards of $119.1 million, of which $17.9 million expire at various dates from 2023 to 2042, and $101.2 million have no expiration date. In addition, we had foreign capital loss carryforwards of $18.4 million and foreign research and development credits of $3.9 million that do not have expiration dates. We have performed an assessment of positive and negative evidence regarding the realization of the deferred tax assets. This
assessment included the evaluation of scheduled reversals of deferred tax liabilities, availability of carrybacks, cumulative losses in recent years, estimates of projected future taxable income and tax planning strategies. Although realization is not assured, based on our assessment, we have concluded that it is more likely than not that the assets will be realized except for the deferred tax assets related to the loss carry-forwards for which a valuation allowance of $12.3 million has been provided.
At October 2, 2022, we had $8.9 million of unrecognized tax benefits, all of which, if recognized, would affect our effective tax rate. It is reasonably possible that the amount of the unrecognized tax benefits with respect to certain of our unrecognized tax positions may significantly decrease in the next 12 months. These changes would be the result of ongoing examinations. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Beginning balance$12,899 $9,228 $9,169 
Additions for current fiscal year tax positions— 2,171 700 
Additions for prior fiscal year tax positions— 1,500 — 
Reductions for prior fiscal year tax positions(3,014)— (641)
Settlements(977)— — 
Ending balance$8,908 $12,899 $9,228 
We recognize potential interest and penalties related to unrecognized tax benefits in income tax expense. During fiscal years 2022, 2021 and 2020, we accrued additional interest and penalties of $0.5 million, $0.8 million and $0.8 million, respectively, and recorded reductions in accrued interest and penalties of $0.4 million, $0 and $0, respectively, as a result of audit settlements and other prior-year adjustments. The amount of interest and penalties accrued at October 2, 2022, October 3, 2021 and September 27, 2020 was $5.3 million, $5.2 million and $4.4 million, respectively.
v3.22.2.2
Long-Term Debt
 12 Months Ended
Oct. 02, 2022
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt consisted of the following:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Credit facilities$258,754 $212,500 
Less: Current portion of long-term debt(12,504)(12,500)
Long-term debt$246,250 $200,000 
On February 18, 2022, we entered into Amendment No. 2 to our Second Amended and Restated Credit Agreement (“Amended Credit Agreement”) with a total borrowing capacity of $1.05 billion that will mature in February 2027. The Amended Credit Agreement is a $750 million senior secured, five-year facility that provides for a $250 million term loan facility (the “Amended Term Loan Facility”) and a $500 million revolving credit facility (the “Amended Revolving Credit Facility”). In addition, the Amended Credit Agreement includes a $300 million accordion feature that allows us to increase the Amended Credit Agreement to $1.05 billion subject to lender approval. The Amended Credit Agreement provides for, among other things, (i) refinance indebtedness under our Credit Agreement dated as of July 30, 2018; (ii) finance open market repurchases of common stock, acquisitions and cash dividends and distributions; and (iii) utilize the proceeds for working capital, capital expenditures and other general corporate purposes. The Amended Credit Agreement provides for a reduction in the interest grid for meeting certain sustainability targets related to the (i) reduction of greenhouse gas emissions through the Company’s projects and operational sustainability initiatives and (ii) improvement of peoples’ lives as a result of the Company’s projects that provide environmental, social and governance benefits. The Amended Revolving Credit Facility includes a $100 million sublimit for the issuance of standby letters of credit, a $20 million sublimit for swingline loans and a $300 million sublimit for multicurrency borrowings and letters of credit.
The entire Amended Term Loan Facility was drawn on February 18, 2022. The Amended Term Loan Facility is subject to quarterly amortization of principal at 5% annually commencing June 30, 2022. We may borrow on the Amended Revolving Credit Facility, at our option, at either (a) a benchmark rate plus a margin that ranges from 1.000% to 1.875% per
annum, or (b) a base rate for loans in U.S. dollars (the highest of the U.S. federal funds rate plus 0.50% per annum, the bank’s prime rate or the Secured Overnight Financing Rate ("SOFR") rate plus 1.00%, plus a margin that ranges from 0% to 0.875% per annum. In each case, the applicable margin is based on our Consolidated Leverage Ratio, calculated quarterly. The Amended Term Loan Facility is subject to the same interest rate provisions. The Amended Credit Agreement expires on February 18, 2027, or earlier at our discretion upon payment in full of loans and other obligations.
At October 2, 2022, we had $258.8 million in outstanding borrowings under the Amended Credit Agreement, which was comprised of $243.8 million under the Amended Term Loan Facility and $15.0 million under the Amended Revolving Credit Facility. The year-to-date weighted-average interest rate of the outstanding borrowings during fiscal 2022 was 1.97%. In addition, we had $0.7 million in standby letters of credit under the Amended Credit Agreement. Our year-to-date weighted-average interest rate on borrowings outstanding during fiscal 2021 under the Amended Credit Agreement, including the effects of interest rate swap agreements described in Note 14, “Derivative Financial Instruments” of the "Notes to Consolidated Financial Statements" included in Item 8, was 3.60%. At October 2, 2022, we had $484.3 million of available credit under the Amended Revolving Credit Facility, all of which could be borrowed without a violation of our debt covenants.
The Amended Credit Agreement contains certain affirmative and restrictive covenants, and customary events of default. The financial covenants provide for a maximum Consolidated Leverage Ratio of 3.25 to 1.00 (total funded debt/EBITDA, as defined in the Amended Credit Agreement) and a minimum Consolidated Interest Coverage Ratio of 3.00 to 1.00 (EBITDA/Consolidated Interest Charges, as defined in the Amended Credit Agreement). Our obligations under the Amended Credit Agreement are guaranteed by certain of our domestic subsidiaries and are secured by first priority liens on (i) the equity interests of certain of our subsidiaries, including those subsidiaries that are guarantors or borrowers under the Amended Credit Agreement, and (ii) the accounts receivable, general intangibles and intercompany loans, and those of our subsidiaries that are guarantors or borrowers. At October 2, 2022, we were in compliance with these covenants with a consolidated leverage ratio of 0.76x and a consolidated interest coverage ratio of 29.52x.
In addition to the Amended Credit Agreement, we maintain other credit facilities, which may be used for short-term cash advances and bank guarantees. At October 2, 2022, there were no outstanding borrowings under these facilities and the aggregate amount of standby letters of credit outstanding was $44.4 million. As of October 2, 2022 we had no bank overdrafts related to our disbursement bank accounts.
The following table presents scheduled maturities of our long-term debt:
 Amount
 (in thousands)
202312,504 
202412,500 
202512,500 
202612,500 
2027208,750 
Total$258,754 
Subsequent Event: On October 26, 2022, we entered into a Third Amended and Restated Credit Agreement that provides for an additional $500 million senior secured term loan facility (the "New Term Loan Facility") increasing our total borrowing capacity to $1.55 billion. We expect to draw the entire amount of the New Term Loan Facility to partially finance the acquisition of RPS. The remaining purchase price is expected to be financed with existing cash on hand and borrowings under the Amended Revolving Credit Facility. The New Term Loan Facility is not subject to any amortization payments of principal and matures on the third anniversary of the RPS acquisition closing date.
v3.22.2.2
Leases
 12 Months Ended
Oct. 02, 2022
Leases [Abstract]  
Leases Leases
Our operating leases are primarily for corporate and project office spaces. To a much lesser extent, we have operating leases for vehicles and equipment. Our operating leases have remaining lease terms of one month to ten years, some of which may include options to extend the leases for up to five years.
We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and current and long-term operating lease liabilities in the consolidated balance sheets. Our finance leases are primarily for certain IT equipment. The related ROU assets and lease liabilities were immaterial.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at
commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.
The components of lease costs are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating lease cost$86,725 $91,076 
Sublease income(150)(106)
Total lease cost$86,575 $90,970 
Supplemental cash flow information related to leases is as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating cash flows for operating leases$71,365 $81,943 
Right-of-use assets obtained in exchange for new operating lease liabilities $44,096 $72,076 
Supplemental balance sheet and other information related to leases are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating leases:
Right-of-use assets$182,319 $215,422 
Lease liabilities:
Current$57,865 $67,452 
Long-term146,285 174,285 
Total operating lease liabilities$204,150 $241,737 
Weighted-average remaining lease term:
Operating leases5 years5 years
Weighted-average discount rate:
Operating leases2.2 %2.2 %
As of October 2, 2022, we do not have any material additional operating leases that have not yet commenced.
A maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities as of October 2, 2022 is as follows:
Amount
(in thousands)
2023$61,703 
202447,520 
202535,466 
202623,481 
202716,961 
Beyond31,927 
Total lease payments217,058 
Less: imputed interest(12,908)
Total present value of lease liabilities$204,150 
Leases Leases
Our operating leases are primarily for corporate and project office spaces. To a much lesser extent, we have operating leases for vehicles and equipment. Our operating leases have remaining lease terms of one month to ten years, some of which may include options to extend the leases for up to five years.
We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and current and long-term operating lease liabilities in the consolidated balance sheets. Our finance leases are primarily for certain IT equipment. The related ROU assets and lease liabilities were immaterial.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at
commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.
The components of lease costs are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating lease cost$86,725 $91,076 
Sublease income(150)(106)
Total lease cost$86,575 $90,970 
Supplemental cash flow information related to leases is as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating cash flows for operating leases$71,365 $81,943 
Right-of-use assets obtained in exchange for new operating lease liabilities $44,096 $72,076 
Supplemental balance sheet and other information related to leases are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating leases:
Right-of-use assets$182,319 $215,422 
Lease liabilities:
Current$57,865 $67,452 
Long-term146,285 174,285 
Total operating lease liabilities$204,150 $241,737 
Weighted-average remaining lease term:
Operating leases5 years5 years
Weighted-average discount rate:
Operating leases2.2 %2.2 %
As of October 2, 2022, we do not have any material additional operating leases that have not yet commenced.
A maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities as of October 2, 2022 is as follows:
Amount
(in thousands)
2023$61,703 
202447,520 
202535,466 
202623,481 
202716,961 
Beyond31,927 
Total lease payments217,058 
Less: imputed interest(12,908)
Total present value of lease liabilities$204,150 
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans
 12 Months Ended
Oct. 02, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity and Stock Compensation Plans Stockholders' Equity and Stock Compensation Plans
At October 2, 2022, we had the following stock-based compensation plans:
•2005 Equity Incentive Plan.  Key employees and non-employee directors may be granted equity awards, including stock options, restricted stock and restricted stock units ("RSUs"). Options vest at 25% on each anniversary of the grant date and expire no later than eight years from the grant date. RSUs granted to date vest at 25% on each anniversary of the grant date.
•2015 Equity Incentive Plan ("2015 EIP").  Key employees and non-employee directors may be granted equity awards, including stock options, performance share units ("PSUs") and RSUs. Shares issued with respect to awards granted under the 2015 EIP other than stock options or stock appreciation rights, which are referred to as "full value awards", are counted against the 2015 EIP's aggregate share limit as three shares for every share or unit actually issued. No awards have been made under the 2015 Equity Incentive Plan since the adoption of the 2018 Equity Incentive Plan on March 8, 2018 described below.
•2018 Equity Incentive Plan ("2018 EIP"). Key employees and non-employee directors may be granted equity awards, including stock options, PSUs and RSUs. Shares issued with respect to awards granted under the 2018 EIP other than stock options or stock appreciation rights, which are referred to as "full value awards", are counted against the 2018 EIP's aggregate share limit as one share for every share or unit issued. At October 2, 2022, there were 2.2 million shares available for future awards pursuant to the 2018 EIP.
•Employee Stock Purchase Plan ("ESPP").  Purchase rights to purchase common stock are granted to our eligible full and part-time employees, and shares of common stock are issued upon exercise of the purchase rights. An aggregate of 380,784 shares may be issued pursuant to such exercise. The maximum amount that an employee can contribute during a purchase right period is $5,000. The exercise price of a purchase right is the lesser of 100% of the fair market value of a share of common stock on the first day of the purchase right period (the business day preceding January 1) or 85% of the fair market value on the last day of the purchase right period (December 15, or the business day preceding December 15 if December 15 is not a business day).
The following table presents our stock-based compensation and related income tax benefits:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Total stock-based compensation$26,227 $23,067 $19,424 
Income tax benefit related to stock-based compensation(5,377)(4,910)(4,318)
Stock-based compensation, net of tax benefit$20,850 $18,157 $15,106 
We recognize the fair value of our stock-based awards as compensation expense on a straight-line basis over the requisite service period in which the award vests. Most of these amounts were included in selling, general and administrative expenses on our consolidated statements of income.
Stock Options
The following table presents our stock option activity for fiscal year ended October 2, 2022:
 Number of
Options
(in thousands)		Weighted-
Average
Exercise Price
per Share		Weighted-
Average
Remaining
Contractual
Term
(in years)		Aggregate
Intrinsic Value
(in thousands)
Outstanding on October 3, 2021214 $38.80   
Exercised(46)39.44   
Forfeited— —   
Outstanding at October 2, 2022168 $38.62 4.04$15,086 
Vested or expected to vest at October 2, 2022168 $38.62 4.04$15,086 
Exercisable on October 2, 2022168 $38.62 4.04$15,086 
The aggregate intrinsic value in the table above represents the total intrinsic value (the difference between our closing stock price on the last trading day of fiscal 2022 and the exercise price, times the number of shares) that would have been received by the in-the-money option holders if they had exercised their options on October 2, 2022. This amount will change based on the fair market value of our stock.
No stock options were granted in fiscal 2022, 2021 and 2020. The aggregate intrinsic value of options exercised during fiscal 2022, 2021 and 2020 was $5.7 million, $29.4 million and $22.4 million, respectively.
Net cash proceeds from the exercise of stock options were $1.8 million, $11.3 million and $10.3 million for fiscal 2022, 2021 and 2020, respectively. Our policy is to issue shares from our authorized shares upon the exercise of stock options. The actual income tax benefit realized from exercises of nonqualified stock options for fiscal 2022, 2021 and 2020 was $1.3 million, $6.7 million and $4.9 million, respectively.
RSU and PSU
RSU awards are granted to our key employee and non-employee directors. The fair value of the RSU was determined at the date of grant using the market price of the underlying common stock as of the date of grant. All of the RSUs have time-based vesting over a four-year period, except that RSUs awarded to directors vest after one year. The total compensation cost of the awards is then amortized over their applicable vesting period on a straight-line basis.
PSU awards are granted to our executive officers and non-employee directors. All of the PSUs are performance-based and vest, if at all, after the conclusion of the three-year performance period. The number of PSUs that ultimately vest is based 50% on growth in our EPS and 50% on our relative total shareholder return over the vesting period. For these performance-based awards, our expected performance is reviewed to estimate the percentage of shares that will vest. The total compensation cost of the awards is then amortized over their applicable vesting period on a straight-line basis.
A summary of the RSU and PSU activity under our stock plans is as follows:
RSUPSU
 Number of
Shares
(in thousands)		Weighted-
Average
Grant Date
Fair Value
per Share		Number of
Shares
(in thousands)		Weighted-
Average
Grant Date
Fair Value
per Share
Nonvested balance at September 29, 2019470 $50.42 384 $53.67 
Granted168 83.92 74 99.85 
Vested(178)46.87 (162)47.28 
Adjustment (1)
— — 64 48.36 
Forfeited(16)65.43 (5)83.98 
Nonvested balance at September 27, 2020444 63.93 355 64.83 
Granted118 122.0258 153.03 
Vested(167)59.64 (193)57.40 
Adjustment (1)
— — 99 57.40 
Forfeited(14)77.74 (1)74.05 
Nonvested balance at October 3, 2021381 83.30 318 82.96 
Granted78 184.6142 247.16 
Vested(147)77.47 (176)80.17 
Adjustment (1)
— — 88 80.63 
Forfeited(13)109.01 — — 
Nonvested balance at October 2, 2022299 $111.40 272 $109.23 
(1) Fiscal 2020 includes a payout adjustment of 63,643 PSUs due to the actual performance level achieved for PSUs granted in fiscal 2017 that vested during fiscal 2020. Fiscal 2021 includes a payout adjustment of 99,214 PSUs due to the actual performance level achieved for PSUs granted in fiscal 2018 that vested during fiscal 2021. Fiscal 2022 includes a payout adjustment of 88,198 PSUs due to the actual performance level achieved for PSUs granted in fiscal 2019 that vested during fiscal 2022.
During fiscal 2022, 2021 and 2020, we awarded 77,844, 117,934 and 167,525 shares of RSUs, respectively, to our key employees and non-employee directors. The weighted-average grant-date fair value of RSUs granted during fiscal 2022, 2021 and 2020 was $184.61, $122.02 and $83.92, respectively. At October 2, 2022, there were 299,055 RSUs outstanding. RSU forfeitures result from employment terminations prior to vesting. Forfeited shares return to the pool of authorized shares available for award. We use historical data as a basis to estimate the probability of forfeitures related to RSUs and the ESPP Plan.
During fiscal 2022, 2021 and 2020, we awarded 41,734, 57,542 and 74,011 shares of PSUs, respectively, to our executive officers and non-employee directors. The weighted-average grant-date fair value of PSUs granted during fiscal 2022, 2021 and 2020 was $247.16, $153.03 and $99.85, respectively.
The stock-based compensation expense related to RSUs and PSUs for fiscal 2022, 2021 and 2020 was $23.9 million, $20.9 million and $17.7 million, respectively, and was included in total stock-based compensation expense. The actual income tax benefit realized from RSUs and PSUs for fiscal 2022, 2021 and 2020 was $9.1 million, $6.2 million and $3.4 million, respectively. At October 2, 2022, there was $35.9 million of unrecognized stock-based compensation costs related to nonvested RSUs and PSUs that will be substantially recognized by the end of fiscal 2025.
ESPP
The following table summarizes shares purchased, weighted-average purchase price, and cash received for shares purchased under the ESPP:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands, except for purchase price)
Shares purchased106 124 168 
Weighted-average purchase price per share$114.17 $86.16 $51.77 
Cash received from exercise of purchase rights$12,129 $10,705 $8,715 
The grant date fair value of each award granted under the ESPP was estimated using the Black-Scholes option pricing model with the following assumptions:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
Dividend yield1.0%1.0%1.0%
Expected stock price volatility32.2%47.9%26.5%
Risk-free rate of return, annual0.4%0.1%1.6%
Expected life (in years)111
For fiscal 2022, 2021 and 2020, we based our expected stock price volatility on historical volatility behavior and current implied volatility behavior. The risk-free rate of return was based on constant maturity rates provided by the U.S. Treasury. The expected life was based on the ESPP terms and conditions.
Stock-based compensation expense for fiscal 2022, 2021 and 2020 included $2.3 million, $2.0 million and $1.2 million, respectively, related to the ESPP. The unrecognized stock-based compensation costs for awards granted under the ESPP at fiscal 2022 and 2021 year-ends were $0.6 million and $0.5 million, respectively. At October 2, 2022, ESPP participants had accumulated $11 million to purchase our common stock.
v3.22.2.2
Retirement Plans
 12 Months Ended
Oct. 02, 2022
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
We have defined contribution plans in various countries where we have employees. This primarily includes 401(k) plans in the United States. For fiscal 2022, 2021 and 2020, employer contributions to the U.S. plans were $29.3 million, $26.9 million and $25.0 million, respectively.
Additionally, we have established a non-qualified deferred compensation plan for certain key employees and non-employee directors. These eligible employees and non-employee directors may elect to defer the receipt of salary, incentive payments, restricted stock, PSU and RSU awards and non-employee director fees. The plan is accounted for in accordance with applicable authoritative guidance on accounting for deferred compensation arrangements where amounts earned are held in a rabbi trust and invested. Employee deferrals are deposited into a rabbi trust, and the funds are generally invested in individual variable life insurance contracts that we own and are specifically designed to informally fund savings plans of this nature. At October 2, 2022 and October 3, 2021, the consolidated balance sheets reflect assets of $36.7 million and $41.4 million, respectively, related to the deferred compensation plan in "Other long-term assets," and liabilities of $36.3 million and $41.1 million, respectively, related to the deferred compensation plan in "Other long-term liabilities." The net gains and losses related to the deferred compensation plan are reported as part of “Selling, general and administrative expenses” in our consolidated statements of income. These related net gains and losses were immaterial for fiscal 2022, 2021 and 2020.
In connection with the acquisition of HLE in fiscal 2021, we assumed a defined benefit pension plan (the “Plan”), which HLE operates for all qualifying employees. The assets of the Plan are held in a separate trustee administered fund. The Plan was closed to new entrants in August 2003, except for current employees who had not attained the age of 24 at that date. The Plan was closed to future accrual on December 31, 2009. Under the agreed schedule of contributions, HLE will make no further contributions, and is to pay the expenses of administering the plan.
The change in the defined benefit obligation, the change in fair value of plan assets and the amounts recognized in the Consolidated Statement of Income, the Consolidated Statement of Comprehensive Income and the Consolidated Statements of Shareholders’ Equity for fiscal 2022 and fiscal 2021 were immaterial.
The Plan's funded status was as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Fair value of plan assets$36,250 $65,836 
Benefit obligation(33,006)(64,830)
Net surplus$3,244 $1,006 
The net surplus is reflected in other long-term assets on our consolidated balance sheets at October 2, 2022 and October 3, 2021. As the plan is closed to new participants and to future benefit accrual, the reduction in the fair value of plan assets and the benefit obligation were primarily due to actual losses on plan assets and an increased discount rate, respectively. Benefits paid during fiscal 2022 were $1.0 million.
The fair values of the plan assets are substantially categorized within Level 2 of the fair value hierarchy. The fair values of the plan assets by major asset categories were as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Equities$8,390 $13,646 
Mutual funds20,886 33,826 
Liability driven investment funds6,484 17,653 
Cash/other490 711 
Fair value of plan assets$36,250 $65,836 
We seek a competitive rate of return relative to an appropriate level of risk depending on the funded status and obligations of each plan and typically employ both active and passive investment management strategies. The risk in our practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. The target asset allocation selected for each plan reflects a risk/return profile that we believe is appropriate relative to each plan’s liability structure and return goals.
Principal assumptions used for the benefit obligation in the valuation are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
Discount rate4.75%2.00%
Rate of inflation
2.95% to 3.55%
2.85% to 3.50%
v3.22.2.2
Earnings per Share
 12 Months Ended
Oct. 02, 2022
Earnings Per Share [Abstract]  
Earnings per Share Earnings per Share
The following table sets forth the number of weighted-average shares used to compute basic and diluted EPS:
Fiscal Year Ended
October 2,
2022		October 3,
2021		September 27,
2020
(in thousands, except per share data)
Net income attributable to Tetra Tech$263,125 $232,810 $173,859 
Weighted-average common shares outstanding – basic53,620 54,078 54,235 
Effect of diluted stock options and unvested restricted stock543 597 787 
Weighted-average common stock outstanding – diluted54,163 54,675 55,022 
Earnings per share attributable to Tetra Tech:   
Basic$4.91 $4.31 $3.21 
Diluted$4.86 $4.26 $3.16 
For fiscal 2022, 2021 and 2020, no options were excluded from the calculation of dilutive potential common shares.
v3.22.2.2
Derivative Financial Instruments
 12 Months Ended
Oct. 02, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
We use certain interest rate derivative contracts to hedge interest rate exposures on our variable rate debt. Also, we may enter in foreign currency derivative contracts with financial institutions to reduce the risk that cash flows and earnings could adversely be affected by foreign currency exchange rate fluctuations. Our hedging program is not designated for trading or speculative purposes.
We recognize derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value. We record changes in the fair value (i.e., gains or losses) of the derivatives that have been designated as cash flow hedges in our consolidated balance sheets as accumulated other comprehensive income, and in our consolidated statements of income for those derivatives designated as fair value hedges. Our derivative contracts are categorized within Level 2 of the fair value hierarchy.
In the anticipation of the planned acquisition of RPS, we entered into a forward contract during the fourth quarter of fiscal 2022 to acquire GBP 714.0 million at a rate of 1.0852 for a total of USD 774.8 million. The contract matures on December 30, 2022. Although an effective economic hedge of our foreign exchange risk related to this transaction, the forward contract did not qualify for hedge accounting. As a result, the forward contract is marked-to-market with changes in fair value recognized in earnings each period. The intrinsic value of the forward contract was immaterial at inception as the GBP/USD spot and forward exchange rates were essentially the same. The fair value of the forward contract at October 2, 2022 was $19.9 million, which resulted in an unrealized gain of the same amount in the fourth quarter fiscal 2022, which is reflected in “Other income" on the consolidated income statement for fiscal 2022. The related $19.9 million asset is reported in "Prepaid expenses and other current assets" on the consolidated balance sheet at October 2, 2022.
In fiscal 2018, we entered into five interest rate swap agreements that we designated as cash flow hedges to fix the interest rates on the borrowings under our term loan facility. As of October 2, 2022, the notional principal of our outstanding interest swap agreements was $200.0 million ($40.0 million each.) The interest rate swaps have a fixed interest rate of 2.79% and expire in July 2023 for all five agreements. At October 2, 2022 and October 3, 2021, the fair value of the effective portion of our interest rate swap agreements designated as cash flow hedges before tax effect was an unrealized gain of $2.4 million and an unrealized loss of $9.4 million, which were reported in "Other long-term assets" and "Other current liabilities" on our consolidated balance sheets, respectively. Additionally, the related gain of $11.8 million, a gain of $6.1 million and a loss of $4.6 million for fiscal year ended 2022, 2021 and 2020, respectively, were recognized and reported on our consolidated statements of comprehensive income. We expect to reclassify a credit of $3.1 million from accumulated other comprehensive loss to interest expense within the next 12 months. There were no other derivative instruments that were not designated as hedging instruments for fiscal 2022, 2021 and 2020.
v3.22.2.2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Oct. 02, 2022
Equity [Abstract]  
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Reclassifications Out of Accumulated Other Comprehensive Income (Loss)
The accumulated balances and reporting period activities for fiscal 2022, 2021 and 2020 related to reclassifications out of accumulated other comprehensive income are summarized as follows:
 Foreign
Currency
Translation
Adjustments		Gain (Loss)
on Derivative
Instruments		Accumulated
Other
Comprehensive
Income (Loss)
 (in thousands)
Balances at September 29, 2019$(149,711)$(10,873)$(160,584)
Other comprehensive income (loss) before reclassifications3,436 (599)2,837 
Amounts reclassified from accumulated other comprehensive income
Interest rate contracts, net of tax (1)
— (4,039)(4,039)
Net current-period other comprehensive income (loss)3,436 (4,638)(1,202)
Balances at September 27, 2020$(146,275)$(15,511)$(161,786)
Other comprehensive income before reclassifications30,641 12,175 42,816 
Amounts reclassified from accumulated other comprehensive income   
Interest rate contracts, net of tax (1)
— (6,058)(6,058)
Net current-period other comprehensive income30,641 6,117 36,758 
Balances at October 3, 2021$(115,634)$(9,394)$(125,028)
Other comprehensive income before reclassifications(94,922)15,937 (78,985)
Amounts reclassified from accumulated other comprehensive income   
Interest rate contracts, net of tax (1)
— (4,131)(4,131)
Net current-period other comprehensive income(94,922)11,806 (83,116)
Balances at October 2, 2022$(210,556)$2,412 $(208,144)
(1) This accumulated other comprehensive component is reclassified to "Interest expense" in our consolidated statements of income. See Note 14, "Derivative Financial Instruments", for more information.
v3.22.2.2
Fair Value Measurements
 12 Months Ended
Oct. 02, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Derivative Instruments.     Our derivative instruments are categorized within Level 2 of the fair value hierarchy. For additional information about our derivative financial instruments (see Note 2, "Basis of Presentation and Preparation" and Note 14, "Derivative Financial Instruments").
Contingent Consideration.    We measure our contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. (see Note 2, "Basis of Presentation and Preparation" and Note 5, "Acquisitions" for further information).
Debt.    The fair value of long-term debt was determined using the present value of future cash flows based on the borrowing rates currently available for debt with similar terms and maturities (Level 2 measurement). The carrying value of our long-term debt approximated fair value at October 2, 2022 and October 3, 2021. At October 2, 2022, we had borrowings of $258.8 million outstanding under our Amended Credit Agreement, which were used to fund our business acquisitions, working capital needs, stock repurchases, dividends, capital expenditures and contingent earn-outs.
Defined Benefit Pension Plan.    The fair values of the plan assets are primarily categorized within Level 2 of the fair value hierarchy. For additional information about our defined benefit pension plan (see Note 12, "Retirement Plans").
v3.22.2.2
Commitments and Contingencies
 12 Months Ended
Oct. 02, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
We are subject to certain claims and lawsuits typically filed against the consulting and engineering profession, alleging primarily professional errors or omissions. We carry professional liability insurance, subject to certain deductibles and policy limits, against such claims. However, in some actions, parties are seeking damages that exceed our insurance coverage or for which we are not insured. While management does not believe that the resolution of these claims will have a material adverse effect, individually or in aggregate, on our financial position, results of operations or cash flows, management acknowledges the uncertainty surrounding the ultimate resolution of these matters.
On July 15, 2019, following an initial January 14, 2019 filing, the Civil Division of the United States Attorney's Office filed an amended complaint in intervention in three qui tam actions filed against our subsidiary, Tetra Tech EC, Inc. ("TtEC"), in the U.S. District Court for the Northern District of California. The complaint alleges False Claims Act violations and breach of contract related to TtEC's contracts to perform environmental remediation services at the former Hunters Point Naval Shipyard in San Francisco, California. TtEC disputes the claims and will defend this matter vigorously. We are currently unable to determine the probability of the outcome of this matter or the range of reasonably possible loss, if any.
v3.22.2.2
Reportable Segments
 12 Months Ended
Oct. 02, 2022
Segment Reporting [Abstract]  
Reportable Segments Reportable Segments
We manage our operations under two reportable segments. Our GSG reportable segment primarily includes activities with U.S. government clients (federal, state and local) and all activities with development agencies worldwide. Our CIG reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies. Additionally, we continue to report the results of the wind-down of our non-core construction activities in the RCM reportable segment. There has been no remaining backlog for RCM since fiscal 2018 as the projects were complete.
Our reportable segments are described as follows:
GSG:    GSG provides high-end consulting and engineering services primarily to U.S. government clients (federal, state and local) and development agencies worldwide. GSG supports U.S. government civilian and defense agencies with services in water, environment, sustainable infrastructure, information technology and disaster management. GSG also provides engineering design services for U.S. municipal and commercial clients, especially in water infrastructure, solid waste and high-end sustainable infrastructure designs. GSG also leads our support for development agencies worldwide, especially in the United States, the United Kingdom and Australia.
CIG:    CIG primarily provides high-end consulting and engineering services to U.S. commercial clients, and international clients that include both commercial and government sectors. CIG supports commercial clients across the Fortune 500, renewable energy, industrial, high performance buildings and aerospace markets. CIG also provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), the United Kingdom, as well as Brazil and Chile.
RCM:    We continued to report the results of the wind-down of our non-core construction activities in the RCM reportable segment in fiscal 2022. There has been no remaining backlog for RCM since fiscal 2018 as the projects were complete. In May 2022, we received a cash settlement for the last $11 million RCM claim outstanding. This settlement resulted in an immaterial gain in the third quarter of fiscal 2022. There were no significant operating activities in RCM for fiscal 2022, 2021 and 2020.
Management evaluates the performance of these reportable segments based upon their respective segment operating income before the effect of amortization expense related to acquisitions, and other unallocated corporate expenses. We account for inter-segment revenues and transfers as if they were to third parties; that is, by applying a negotiated fee onto the costs of the services performed. All significant intercompany balances and transactions are eliminated in consolidation.
The following tables present summarized financial information of our reportable segments:
Reportable Segments
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27, 2020
 (in thousands)
Revenue 
   
GSG$1,820,868 $1,772,905 $1,578,332 
CIG1,738,436 1,500,074 1,471,097 
RCM— 613 198 
Elimination of inter-segment revenue(55,256)(60,079)(54,736)
Total revenue$3,504,048 $3,213,513 $2,994,891 
Income from operations
GSG$198,448 $174,755 $146,273 
CIG194,142 152,262 136,418 
Corporate (1)
(52,144)(48,316)(41,600)
Total income from operations$340,446 $278,701 $241,091 
(1) Includes goodwill and intangible assets impairment charges, amortization of intangibles, other costs and other income not allocable to segments. The intangible asset amortization expense for fiscal 2022, 2021 and 2020 was $13.2 million, $11.5 million and $11.6 million, respectively. Additionally, Corporate results included income (loss) for fair value adjustments to contingent consideration liabilities of $(0.3) million, $3.3 million and $15.0 million for fiscal 2022,
2021 and 2020, respectively. Corporate results in fiscal 2020 also included $15.8 million goodwill impairment charges. See Note 6 - "Goodwill and Intangible Assets" for more information.
Balance at
 October 2,
2022		October 3,
2021
 (in thousands)
Total Assets 
  
GSG$558,764 $545,533 
CIG688,640 698,916 
RCM2 11,360 
Corporate (1)
1,375,370 1,320,753 
Total assets$2,622,776 $2,576,562 
(1) Corporate assets consist of intercompany eliminations and assets not allocated to our reportable segments including goodwill, intangible assets, deferred income taxes and certain other assets.
Geographic Information
 Fiscal Year Ended
Revenue:October 2,
2022		October 3,
2021		September 27, 2020
(in thousands)
United States$2,416,586 $2,256,086 $2,107,459 
Foreign countries (1)
1,087,462 957,427 887,432 
Total $3,504,048 $3,213,513 $2,994,891 
 Balance at
Long-lived assets (2):
October 2,
2022		October 3,
2021
(in thousands)
United States$199,875 $215,689 
Foreign countries (1)
77,305 87,771 
Total $277,180 $303,460 
(1) Includes revenue and long-lived assets from our foreign operations, primarily in Canada, Australia and the United Kingdom, and revenue generated from non-U.S. clients.
(2) Excludes goodwill, intangible assets and deferred income taxes.
v3.22.2.2
Related Party Transactions
 12 Months Ended
Oct. 02, 2022
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
We often provide services to unconsolidated joint ventures. Our revenue related to services we provided to unconsolidated joint ventures for fiscal 2022, 2021 and 2020 was $96.0 million, $95.5 million and $88.2 million, respectively. Our related reimbursable costs for fiscal 2022, 2021 and 2020 were $91.7 million, $92.4 million and $86.4 million, respectively. Our consolidated balance sheets also included the following amounts related to these services:
Balance at
October 2, 2022October 3, 2021
(in thousands)
Accounts receivable, net$16,818 $19,082 
Contract assets2,935 5,092 
Contract liabilities3,464 3,026 
v3.22.2.2
Quarterly Financial Information – Unaudited
 12 Months Ended
Oct. 02, 2022
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information – Unaudited Quarterly Financial Information – Unaudited
In the opinion of management, the following unaudited quarterly data for the fiscal years ended October 2, 2022 and October 3, 2021 reflect all adjustments necessary for a fair statement of the results of operations.
In the fourth quarter of fiscal 2022, we recognized a $19.9 million unrealized gain on a foreign currency forward contract related to the planned acquisition of RPS.
In the fourth quarter of fiscal 2021, we recognized a non-recurring net tax benefit of $21.6 million primarily consisting of valuation allowances in the United Kingdom that were released due to sufficient positive evidence being obtained.
 First
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
 (in thousands, except per share data)
Fiscal Year 2022    
Revenue$858,510 $852,744 $890,231 $902,562 
Income from operations87,220 74,520 83,905 94,802 
Net income attributable to Tetra Tech68,489 53,040 58,650 82,947 
Earnings per share attributable to Tetra Tech:    
Basic$1.27 $0.99 $1.10 $1.56 
Diluted$1.25 $0.98 $1.09 $1.55 
Weighted-average common shares outstanding:    
Basic53,937 53,834 53,507 53,148 
Diluted54,577 54,346 54,006 53,667 
Fiscal Year 2021    
Revenue$765,104 $754,764 $801,633 $892,012 
Income from operations66,252 60,807 69,807 81,836 
Net income attributable to Tetra Tech52,436 45,517 51,903 82,954 
Earnings per share attributable to Tetra Tech:    
Basic$0.97 $0.84 $0.96 $1.54 
Diluted$0.96 $0.83 $0.95 $1.52 
Weighted-average common shares outstanding:    
Basic53,927 54,187 54,117 54,019 
Diluted54,637 54,736 54,666 54,597 
v3.22.2.2
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
 12 Months Ended
Oct. 02, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

For the Fiscal Years Ended
September 27, 2020, October 3, 2021 and October 2, 2022
(in thousands)
 Balance at
Beginning of
Period		Charged to
Costs and Expenses
Deductions (2)
Other (3)
Balance at
End of Period
Allowance for doubtful accounts (1):
Fiscal 2020$10,562 $1,472 $(4,887)— $7,147 
Fiscal 20217,147 (4,130)195 1,140 4,352 
Fiscal 20224,352 (73)(400)(130)3,749 
Income tax valuation allowance:
Fiscal 2020$20,543 $3,852 $— $— $24,395 
Fiscal 202124,395 13,698 (26,059)1,006 13,040 
Fiscal 202213,040 — (162)(592)12,286 
(1) Reflects updated presentation of allowance for doubtful accounts to include expected credit losses in anticipation of our adoption of ASU 2016-13 in the first quarter of fiscal 2021.
(2) Primarily represents write-offs of uncollectible amounts, net of recoveries for the allowance for doubtful accounts. The income tax valuation amount represents the release of a valuation allowance in the United Kingdom in fiscal 2021.
(3) Includes loss in foreign jurisdictions, currency adjustments and valuation allowance adjustments related to net operating loss carry-forwards.
v3.22.2.2
Basis of Presentation and Preparation (Policies)
 12 Months Ended
Oct. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Principles of Consolidation and Presentation Principles of Consolidation and Presentation.    The consolidated financial statements include our accounts and those of joint ventures of which we are the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year Fiscal Year. We report results of operations based on 52 or 53-week periods ending on the Sunday nearest September 30. Fiscal years 2022, 2021 and 2020 contained 52, 53 and 52 weeks, respectively.
Use of Estimates Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires us to make estimates and assumptions. These estimates and assumptions affect the amounts reported in our consolidated financial statements and accompanying notes. Although such estimates and assumptions are based on management's best knowledge of current events and actions we may take in the future, actual results could differ materially from those estimates.
Cash and Cash Equivalents Cash and Cash Equivalents.    Cash and cash equivalents include highly liquid investments with original maturities of 90 days or less. Occasionally, we have bank overdrafts, which occur when a bank honors disbursements in excess of funds on deposit in our bank accounts. We classify bank overdrafts as short-term borrowings on our consolidated balance sheets, and report the change in overdrafts as a financing activity in our consolidated statements of cash flows.
Insurance Matters, Litigation and Contingencies Insurance Matters, Litigation and Contingencies.    In the normal course of business, we are subject to certain contractual guarantees and litigation. In addition, we maintain insurance coverage for various aspects of our business and operations. We record in our consolidated balance sheets amounts representing our estimated liability for these legal and insurance obligations. Any adjustments to these liabilities are recorded in our consolidated statements of income.
Accounts Receivable - Net Accounts Receivable – Net.    Net accounts receivable consists of billed and unbilled accounts receivable, and allowances for doubtful accounts. Billed accounts receivable represent amounts billed to clients that have not been collected. Unbilled accounts receivable, which represent an unconditional right to payment subject only to the passage of time, include unbilled amounts typically resulting from revenue recognized but not yet billed pursuant to contract terms or billed after the period end date. Most of our unbilled receivables at October 2, 2022 are expected to be billed and collected within 12 months. Unbilled accounts receivable also include amounts related to requests for equitable adjustment to contracts that provide for price redetermination. These amounts are recorded only when they can be reliably estimated and realization is probable. The allowance for doubtful accounts represents amounts that are expected to become uncollectible or unrealizable in the future. We determine an estimated allowance for uncollectible accounts based on management's consideration of trends in the actual and forecasted credit quality of our clients, including delinquency and payment history; type of client, such as a government agency or a commercial sector client; and general economic and industry conditions that may affect our clients' ability to pay.October 2, 2022 are expected to be billed and collected within 12 months. The
allowance for doubtful accounts represents amounts that are expected to become uncollectible or unrealizable in the future. We determine an estimated allowance for uncollectible accounts based on management's consideration of trends in the actual and forecasted credit quality of our clients, including delinquency and payment history; type of client, such as a government agency or a commercial sector client; and general economic and industry conditions, including the potential impacts of the COVID-19 pandemic, that may affect our clients' ability to pay.
Claims are amounts in excess of agreed contract prices that we seek to collect from our clients or other third parties for delays, errors in specifications and designs, contract terminations, change orders in dispute or unapproved as to both scope and price or other causes of unanticipated additional costs. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regards to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in our performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. This can lead to a situation in which costs are recognized in one period and revenue is recognized in a subsequent period when a client agreement is obtained or a claims resolution occurs. Total accounts receivable at October 3, 2021 included approximately $11 million related to claims, including requests for equitable adjustment, on contracts that provide for price redetermination. This amount related to a single claim in our RCM reportable segment. In May 2022, we received a cash settlement for the claim, which resulted in an immaterial gain in the third quarter of fiscal 2022. There were no claims included in our total accounts receivable at October 2, 2022.
We regularly evaluate all unsettled claim amounts and record appropriate adjustments to revenue when it is probable that the claim will result in a different contract value than the amount previously estimated. In fiscal 2022, we recorded no gains or losses related to claims other than the aforementioned immaterial gain on the settled RCM claim.
Contract Assets and Contract Liabilities and Revenue Contract Assets and Contract Liabilities. Contract assets represent revenue recognized in excess of the amounts for which we have the contractual right to bill our customers. Contract retentions, included in contract assets, represent amounts withheld by clients until certain conditions are met or the project is completed, which may extend beyond one year. Contract liabilities represent the amount of cash collected from clients and billings to clients on contracts in advance of work performed and revenue recognized. The majority of these amounts are expected be earned within 12 months and are classified as current liabilities.Due to uncertainties inherent in the estimation process, it is possible that estimates of costs to complete a performance obligation will be revised in the near-term. For those performance obligations for which revenue is recognized using a cost-to-cost measure of progress method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. When the current estimate of total costs indicates a loss, a provision for the entire estimated loss on the contract is made in the period in which the loss becomes evident.
We invoice customers based on the contractual terms of each contract. However, the timing of revenue recognition may differ from the timing of invoice issuance.
Contract assets represent revenue recognized in excess of the amounts for which we have the contractual right to bill our customers. Such amounts are recoverable from customers based upon various measures of performance, including achievement of certain milestones or completion of a contract. In addition, many of our time and materials arrangements are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Contract retentions, included in contract assets, represent amounts withheld by clients until certain conditions are met or the project is completed, which may extend beyond one year.
Contract liabilities consist of billings in excess of revenue recognized. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation and increase as billings in advance of revenue recognition occur. Contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. There were no substantial non-current contract assets or liabilities for the periods presented.We recognize revenue primarily using the cost-to-cost measure of progress method to estimate progress towards completion. Changes in those estimates could result in the recognition of cumulative catch-up adjustments to the contract’s inception-to-date revenue, costs and profit in the period in which such changes are made. TOur RUPOs represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. We had $3.7 billion of RUPOs as of October 2, 2022. RUPOs increase with awards from new contracts or additions on existing contracts and decrease as work is performed and revenue is recognized on existing contracts. RUPOs may also decrease when projects are canceled or modified in scope. We include a contract within our RUPOs when the contract is awarded and an agreement on contract terms has been reached. Although RUPOs reflect business that is considered to be firm, cancellations, deferrals or scope adjustments may occur. RUPOs are adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign currency exchange fluctuations and project deferrals, as appropriate. Our operations and maintenance contracts can generally be terminated by the clients without a substantive financial penalty. Therefore, the remaining performance obligations on such contracts are limited to the notice period required for the termination (usually 30, 60 or 90 days).
Prepaid and Other Current Assets Prepaid and other current assets.    Prepaid assets consist primarily of payments for insurance and software costs and are amortized over the estimated period of benefit. Other current assets include primarily sales/services and use tax receivables from our U.S and foreign operations.
Property and Equipment Property and Equipment.    Property and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from our consolidated balance sheets and any resulting gain or loss is reflected in our consolidated statements of income. Expenditures for maintenance and repairs are expensed as incurred. Generally, estimated useful lives range from three to seven years for equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the lease term. Assets held for sale are measured at the lower of carrying amount (i.e., net book value) and fair value less cost to sell, and are reported within "Prepaid expenses and other current assets" on our consolidated balance sheets. Once assets are classified as held for sale, they are no longer depreciated.
Long-Lived Assets Long-Lived Assets.   We evaluate the recoverability of our long-lived assets when the facts and circumstances suggest that the assets may be impaired. This assessment is performed based on the estimated undiscounted cash flows compared to the carrying value of the assets. If the future cash flows (undiscounted and without interest charges) are less than the carrying value, a write-down would be recorded to reduce the related asset to its estimated fair value.
Leases
Leases. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, and current and long-term operating lease liabilities in the consolidated balance sheets. Our finance leases are reported in "Other long-term assets", "Other current liabilities" and "Other long-term liabilities" on our consolidated balance sheet.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.
We recognize a liability for contract termination costs associated with an exit activity for costs that will continue to be incurred under a lease for its remaining term without economic benefit to us, initially measured at its fair value at the cease-use date. The fair value is determined based on the remaining lease rentals, adjusted for the effects of any prepaid or deferred items recognized under the lease, and reduced by estimated sublease rentals.
Business Combinations Business Combinations.    The cost of an acquired company is assigned to the tangible and intangible assets purchased and the liabilities assumed based on their fair values at the date of acquisition. The determination of fair values of these assets and liabilities requires us to make estimates and use valuation techniques when a market value is not readily available. Any excess of purchase price over the fair value of net tangible and intangible assets acquired is allocated to goodwill. Goodwill typically represents the value paid for the assembled workforce and enhancement of our service offerings. Transaction costs associated with business combinations are expensed as incurred.
Goodwill and Intangible Assets
Goodwill and Intangible Assets.    Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a business acquisition. Following an acquisition, we perform an analysis to value the acquired company's tangible and identifiable intangible assets and liabilities. With respect to identifiable intangible assets, we consider backlog, non-compete agreements, client relations, trade names, patents and other assets. We amortize our intangible assets based on the period over which the contractual or economic benefits of the intangible assets are expected to be realized. We assess the recoverability of the unamortized balance of our intangible assets when indicators of impairment are present based on expected future profitability and undiscounted expected cash flows and their contribution to our overall operations. Should the review indicate that the carrying value is not fully recoverable, the excess of the carrying value over the fair value of the intangible assets would be recognized as an impairment loss.
We test our goodwill for impairment on an annual basis, and more frequently when an event occurs, or circumstances indicate that the carrying value of the asset may not be recoverable. We believe the methodology that we use to review impairment of goodwill, which includes a significant amount of judgment and estimates, provides us with a reasonable basis to determine whether impairment has occurred. However, many of the factors employed in determining whether our goodwill is impaired are outside of our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes could result in future impairments.
We perform our annual goodwill impairment review at the beginning of our fiscal fourth quarter. Our last annual review was performed at July 4, 2022 (i.e., the first day of our fiscal fourth quarter). In addition, we regularly evaluate whether events and circumstances have occurred that may indicate a potential change in recoverability of goodwill. We perform interim goodwill impairment reviews between our annual reviews if certain events and circumstances have occurred, including a deterioration in general economic conditions, an increased competitive environment, a change in management, key personnel, strategy or customers, negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods. We assess goodwill for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment, referred to as a component. Our operating segments are the same as our reportable segments and our reporting units for goodwill impairment testing are the components one level below our reportable segments. These components constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. We aggregate components within an operating segment that have similar economic characteristics.The impairment test for goodwill involves the comparison of the estimated fair value of each reporting unit to the reporting unit's carrying value, including goodwill. We estimate the fair value of reporting units based on a comparison and weighting of the income approach, specifically the discounted cash flow method and the market approach, which estimates the fair value of our reporting units based upon comparable market prices and recent transactions and also validates the reasonableness of the multiples from the income approach. The development of the present value of future cash flow projections includes assumptions and estimates derived from a review of our expected revenue growth rates, operating profit margins, discount rates and the terminal growth rate. If the fair value of a reporting unit exceeds its carrying amount, the goodwill of that reporting unit is not considered impaired. However, if its carrying value exceeds its fair value, our goodwill is impaired, and we are required to record a non-cash charge that could have a material adverse effect on our consolidated financial statements. An impairment loss recognized, if any, should not exceed the total amount of goodwill allocated to the reporting unit.
Contingent Consideration
Contingent Consideration.    Most of our acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future operating income thresholds. The contingent earn-out arrangements are based upon our valuations of the acquired companies and reduce the risk of overpaying for acquisitions if the projected financial results are not achieved.
The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates. For each transaction, we estimate the fair value of contingent earn-out payments as part of the initial purchase price and record the estimated fair value of contingent consideration as a liability in "Current contingent earn-out liabilities" and "Long-term contingent earn-out liabilities" on the consolidated balance sheets. We consider several factors when determining that contingent earn-out liabilities are part of the purchase price, including the following: (1) the valuation of our acquisitions is not supported solely by the initial consideration paid, and the contingent earn-out formula is a critical and material component of the valuation approach to determining the purchase price; and (2) the former owners of acquired companies that remain as key employees receive compensation other than contingent earn-out payments at a reasonable level compared with the compensation of our other key employees. The contingent earn-out payments are not affected by employment termination.
We measure our contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within Level 3 of the fair value hierarchy. We use a probability weighted discounted income approach as a valuation technique to convert future estimated cash flows to a single present value amount. The significant unobservable inputs used in the fair value measurements are operating income projections over the earn-out period (generally three or five years) and the probability outcome percentages we assign to each scenario. Significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability, with a higher liability capped by the contractual maximum of the contingent earn-out obligation. Ultimately, the liability will be equivalent to the amount paid, and the difference between the fair value estimate and amount paid will be recorded in earnings. The amount paid that is less than or equal to the contingent earn-out liability on the acquisition date is reflected as cash used in financing activities in our consolidated statements of cash flows. Any amount paid in excess of the contingent earn-out liability on the acquisition date is reflected as cash used in operating activities in our consolidated statements of cash flows.
We review and re-assess the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Changes in the estimated fair value of our contingent earn-out liabilities related to the time component of the present value calculation are reported in interest expense. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income.
Other Current Liabilities Other current liabilities.    Other current liabilities consists primarily of accrued insurance, contingent liabilities, sales/services and use taxes due to our U.S. and foreign operations, other tax accruals and accrued professional fees.
Fair Value of Financial Instruments
Fair Value of Financial Instruments.    We determine the fair values of our financial instruments, including short-term investments, debt instruments, derivative instruments and pension plan assets based on inputs or assumptions that market participants would use in pricing an asset or a liability. We categorize our instruments using a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.
The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair values based on their short-term nature. The carrying amounts of our revolving credit facility approximates fair value because the interest rates are based upon variable reference rates. Certain other assets and liabilities, such as contingent earn-out liabilities and amounts related to cash-flow hedges, are required to be carried in our consolidated financial statements at fair value.
Our fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.
Derivative Financial Instruments
Derivative Financial Instruments.    We account for our derivative instruments as either assets or liabilities and carry them at fair value. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income in stockholders' equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in current income. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions.
The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure generated by the re-measurement of certain assets and liabilities denominated in a non-functional currency in a foreign operation is reported in the same manner as a foreign currency translation adjustment. Accordingly, any gains or losses related to these derivative instruments are recognized in current income. Derivatives that do not qualify as hedges are adjusted to fair value through current income.
Deferred Compensation Deferred Compensation. We maintain a non-qualified defined contribution supplemental retirement plan for certain key employees and non-employee directors that is accounted for in accordance with applicable authoritative guidance on accounting for deferred compensation arrangements where amounts earned are held in a rabbi trust and invested. Employee deferrals are deposited into a rabbi trust, and the funds are generally invested in individual variable life insurance contracts that we own and are specifically designed to informally fund savings plans of this nature. Our consolidated balance sheets reflect our investment in variable life insurance contracts in "Other long-term assets." Our obligation to participating employees is reflected in "Other long-term liabilities." The net gains and losses related to the deferred compensation plan are reported as part of “Selling, general and administrative expenses” in our consolidated statements of income.
Pension Plan Pension Plan.    We assumed a defined benefit pension plan from a fiscal 2021 acquisition. We calculate the market-related value of assets, which is used to determine the return-on-assets component of annual pension expense and the cumulative net unrecognized gain or loss subject to amortization. This calculation reflects our anticipated long-term rate of return and amortization of the difference between the actual return (including capital, dividends, and interest) and the expected return. Cumulative net unrecognized gains or losses that exceed 10% of the greater of the projected benefit obligation or the fair market related value of plan assets are subject to amortization.
Income Taxes
Income Taxes.    We file a consolidated U.S. federal income tax return. In addition, we file other returns that are required in the states, foreign jurisdictions and other jurisdictions in which we do business. We account for certain income and expense items differently for financial reporting and income tax purposes. Deferred tax assets and liabilities are computed for the difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to reverse. In determining the need for a valuation allowance, management reviews both positive and negative evidence, including current and historical results of operations, future income projections, scheduled reversals of deferred tax amounts, availability of carrybacks and potential tax planning strategies. Based on our assessment, we have concluded that a portion of the deferred tax assets will not be realized.
According to the authoritative guidance on accounting for uncertainty in income taxes, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from
such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. This guidance also addresses de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and disclosure requirements for uncertain tax positions.
Concentration of Credit Risk Concentration of Credit Risk.    Financial instruments that subject us to credit risk consist primarily of cash and cash equivalents and net accounts receivable. In the event that we have surplus cash, we place our temporary cash investments with lower risk financial institutions and, by policy, limit the amount of investment exposure to any one financial institution. Approximately 23% of accounts receivable were due from various agencies of the U.S. federal government at fiscal 2022 year-end. The remaining accounts receivable are generally diversified due to the large number of organizations comprising our client base and their geographic dispersion. We perform ongoing credit evaluations of our clients and maintain an allowance for potential credit losses.
Foreign Currency Translation Foreign Currency Translation.    We determine the functional currency of our foreign operating units based upon the primary currency in which they operate. These operating units maintain their accounting records in their local currency, primarily Canadian and Australian dollars and British pounds. Where the functional currency is not the U.S. dollar, translation of assets and liabilities to U.S. dollars is based on exchange rates at the balance sheet date. Translation of revenue and expenses to U.S. dollars is based on the average rate during the period. Translation gains or losses are reported as a component of other comprehensive income. Gains or losses from foreign currency transactions are included in income from operations.
Recently Issued Accounting Pronouncements Adopted and Not Yet Adopted
Recently Issued Accounting Pronouncements Adopted in Fiscal 2022.
In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2019-12, which simplifies the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and amending certain existing guidance for clarity. We adopted this guidance in the first quarter of fiscal 2022, and the adoption did not have an impact on our consolidated financial statements.
In May 2020, the Securities and Exchange Commission issued guidance amending certain financial disclosures about acquired and disposed businesses. The amendments are designed to assist registrants in making more meaningful determinations of whether a subsidiary or an acquired or disposed business is significant, and to improve the related disclosure requirements. We adopted this guidance in the first quarter of fiscal 2022, and the adoption did not have an impact on our consolidated financial statements.
In October 2021, the FASB issued ASU 2021-08, which requires the recognition and measurement of contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers" ("ASC 606"). Considerations to determine the amount of contract assets and contract liabilities to record at the acquisition date include the terms of the acquired contract, such as timing of payment, identification of each performance obligation in the contract and allocation of the contract transaction price to each identified performance obligation on a relative standalone selling price basis as of contract inception. ASU 2021-08 is effective for us beginning in the first quarter of fiscal 2023. ASU 2021-08 should be applied prospectively for acquisitions occurring on or after the effective date of the amendments. Early adoption of the proposed amendments would be permitted, including adoption in an interim period. We adopted this guidance in the first quarter of fiscal 2022, and the adoption did not have an impact on our consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted.
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires disclosures for transactions with a government authority that are accounted for by applying a grant or contribution model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity's financial statements. ASU 2021-10 is effective for us beginning in the first quarter of fiscal 2023, with early adoption permitted. This guidance should be applied prospectively to all transactions that are reflected in the financial statements at the date of initial application and to new transactions that are entered into after that date, or retrospectively.
In fiscal 2020, the Canadian federal government implemented the Canadian Emergency Wage Subsidy ("CEWS") program in response to the negative impact of the coronavirus disease 2019 ("COVID-19") pandemic on businesses operating in Canada. Our Canadian legal entities qualified for and applied for these CEWS cash benefits to partially offset the impacts of revenue reductions and on-going staffing costs. The $26.0 million total received was initially recorded in "Other current liabilities" until all potential amendments to the qualification criteria, including some that were proposed with retroactive application, were finalized in fiscal 2022. As there are no further contingencies, beginning in fiscal 2023, the amounts received will be distributed to all Canadian employees. We expect to distribute approximately $9 million in the next twelve months. Accordingly, this amount was reclassified from "Other current liabilities" to "Accrued compensation" on our consolidated balance sheet as of October 2, 2022. The remaining $17.0 million, which we expect to distribute beyond one year, was reclassified to "Other long-term liabilities". We do not expect there will be any related impact to our operating income, and we have no outstanding applications for further government assistance.
v3.22.2.2
Revenue and Contract Balances (Tables)
 12 Months Ended
Oct. 02, 2022
Revenue from Contract with Customer [Abstract]  
Summary of revenue disaggregated by client sector and contract type The following tables present revenue disaggregated by client sector and contract type:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27, 2020
 (in thousands)
Client Sector:
U.S. federal government (1)
$1,064,347 $1,081,608 $993,835 
U.S. state and local government603,286 536,309 439,019 
U.S. commercial748,953 638,169 674,605 
International (2)
1,087,462 957,427 887,432 
Total$3,504,048 $3,213,513 $2,994,891 
Contract Type:
Fixed-price$1,317,993 $1,191,244 $1,078,432 
Time-and-materials1,637,019 1,492,813 1,391,592 
Cost-plus549,036 529,456 524,867 
Total$3,504,048 $3,213,513 $2,994,891 
(1) Includes revenue generated under U.S. federal government contracts performed outside the United States.
(2) Includes revenue generated from foreign operations, primarily in Canada, Australia, the United Kingdom and revenue generated from non-U.S. clients.
Summary of net contract assets/liabilities Net contract liabilities consisted of the following:
Balance at
October 2,
2022		October 3, 2021
(in thousands)
Contract assets (1)
$92,405 $103,784 
Contract liabilities241,340 190,403 
Net contract liabilities$(148,935)$(86,619)
(1) Includes $23.3 million and $12.2 million of contract retentions as of October 2, 2022 and October 3, 2021, respectively.
Components of net accounts receivable
Net accounts receivable consisted of the following:
Balance at
October 2,
2022		October 3,
2021
(in thousands)
Billed$491,700 $432,814 
Unbilled267,161 240,536 
Total accounts receivable758,861 673,350 
Allowance for doubtful accounts(3,749)(4,352)
Total accounts receivable, net$755,112 $668,998 
Remaining performance obligation, expected timing
We expect to satisfy our RUPOs as of October 2, 2022 over the following periods:
Amount
(in thousands)
Within 12 months$2,394,090 
Beyond 1,327,544 
Total $3,721,634 
v3.22.2.2
Stock Repurchase and Dividends (Tables)
 12 Months Ended
Oct. 02, 2022
Stock Repurchase And Dividends [Abstract]  
Summary of dividends declared and paid
The following table presents dividends declared and paid in fiscal 2022 and 2021:
Declare DateDividend Paid Per ShareRecord DatePayment DateDividends Paid
(in thousands)
November 15, 2021$0.20 December 2, 2021December 20, 2021$10,793 
January 31, 2022$0.20 February 11, 2022February 25, 202210,769 
May 2, 2022$0.23 May 13, 2022May 27, 202212,311 
August 1, 2022$0.23 August 12, 2022August 26, 202212,226 
Total dividends paid as of October 2, 2022$46,099 
November 9, 2020$0.17 November 30, 2020December 11, 2020$9,198 
January 25, 2021$0.17 February 10, 2021February 26, 20219,212 
April 26, 2021$0.20 May 12, 2021May 28, 202110,831 
July 26, 2021$0.20 August 20, 2021September 3, 202110,800 
Total dividends paid as of October 3, 2021$40,041 
v3.22.2.2
Acquisitions (Tables)
 12 Months Ended
Oct. 02, 2022
Business Combination and Asset Acquisition [Abstract]  
Summary of changes in the carrying value of estimated contingent earn-out liabilities
The following table summarizes the changes in the carrying value of estimated contingent earn-out liabilities:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Beginning balance$59,297 $32,617 $52,992 
Acquisition date fair value of contingent earn-out liabilities31,341 50,235 16,581 
Change in fair value of contingent earn-out liabilities2,184 992 1,162 
Re-measurement of contingent earn-out liabilities329 (3,273)(14,971)
Foreign exchange impact(7,152)(596)(247)
Earn-out payments:   
Reported as cash used in operating activities(310)(427)— 
Reported as cash used in financing activities(20,123)(20,251)(22,900)
Ending balance $65,566 $59,297 $32,617 
v3.22.2.2
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Oct. 02, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of changes in carrying value of goodwill
The following table summarizes the changes in the carrying value of goodwill:
GSGCIGTotal
 (in thousands)
Balance at September 27, 2020$516,315 $477,183 $993,498 
Acquisitions15,112 75,479 90,591 
Translation and other7,006 17,483 24,489 
Balance at October 3, 2021538,433 570,145 1,108,578 
Goodwill reallocation(51,497)51,497 — 
Acquisitions42,365 26,318 68,683 
Translation and other(10,199)(56,650)(66,849)
Balance at October 2, 2022$519,102 $591,310 $1,110,412 
Summary of acquired identifiable intangible assets with finite useful lives
The following table presents the gross amount and accumulated amortization of our acquired identifiable intangible assets with finite useful lives included in "Intangible assets, net" on the consolidated balance sheets:
Fiscal Year Ended
October 2, 2022October 3, 2021
Weighted-
Average
Remaining
Life
(in years)		Gross
Amount		Accumulated
Amortization		Net
Amount		Gross
Amount		Accumulated
Amortization		Net
Amount
($ in thousands)
Client relations5.5$41,676 $(21,092)$20,584 $69,455 $(43,984)$25,471 
Backlog0.633,286 (29,990)3,296 34,577 (30,670)3,907 
Technology and trade names3.712,711 (7,428)5,283 14,939 (6,327)8,612 
Total $87,673 $(58,510)$29,163 $118,971 $(80,981)$37,990 
Estimated amortization expense for the succeeding five years and beyond
Estimated amortization expense for the succeeding five fiscal years and beyond is as follows:
 Amount
 (in thousands)
2023$9,788 
20245,244 
20254,411 
20263,590 
20272,168 
Beyond3,962 
Total$29,163 
v3.22.2.2
Property and Equipment (Tables)
 12 Months Ended
Oct. 02, 2022
Property, Plant and Equipment [Abstract]  
Schedule of components of property and equipment
Property and equipment consisted of the following:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021
 (in thousands)
Equipment, furniture and fixtures$96,710 $94,780 
Leasehold improvements32,428 36,462 
Total property and equipment129,138 131,242 
Accumulated depreciation(96,822)(93,509)
Property and equipment, net$32,316 $37,733 
v3.22.2.2
Income Taxes (Tables)
 12 Months Ended
Oct. 02, 2022
Income Tax Disclosure [Abstract]  
Schedule of income before income taxes, by geographical area
Income before income taxes, by geographic area, was as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Income before income taxes:   
United States$262,428 $211,222 $209,443 
Foreign86,338 55,648 18,548 
Total income before income taxes$348,766 $266,870 $227,991 
Schedule of components of income tax expense
Income tax expense consisted of the following:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
  (in thousands) 
Current:   
Federal$47,447 $41,056 $24,102 
State9,613 9,893 6,872 
Foreign26,332 18,887 20,398 
Total current income tax expense83,392 69,836 51,372 
Deferred: 
Federal(424)(6,034)2,187 
State(382)(2,060)870 
Foreign3,016 (27,703)(328)
Total deferred income tax expense (benefit) 2,210 (35,797)2,729 
Total income tax expense$85,602 $34,039 $54,101 
Schedule of reconciliation of income tax rate
Total income tax expense was different from the amount computed by applying the U.S. federal statutory rate to pre-tax income as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
Tax at federal statutory rate21.0%21.0%21.0%
State taxes, net of federal benefit2.12.32.7
Research and Development ("R&D") credits(1.0)(2.6)(2.2)
Tax differential on foreign earnings1.00.90.7
Non-taxable foreign interest income—(1.0)(1.1)
Goodwill——1.5
Stock compensation(2.0)(3.3)(2.2)
Valuation allowance0.2(9.3)1.6
Change in uncertain tax positions(1.1)1.70.4
Return to provision1.4(3.7)0.8
Disallowed officer compensation1.92.00.2
Cash repatriation0.12.1—
Unremitted earnings(0.2)1.0—
Deferred tax adjustments0.10.8(1.3)
Other1.00.91.6
Total income tax expense24.5%12.8%23.7%
Schedule of temporary differences comprising the net deferred income tax asset
Temporary differences comprising the net deferred income tax asset shown on the accompanying consolidated balance sheets were as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021
 (in thousands)
Deferred Tax Assets:  
State taxes$1,238 $1,342 
Reserves and contingent liabilities5,023 6,662 
Accounts receivable including the allowance for doubtful accounts4,986 5,917 
Accrued liabilities35,973 41,657 
Lease liabilities, operating leases49,618 60,181 
Stock-based compensation2,925 3,560 
Unbilled revenue4,885 — 
Loss carry-forwards41,648 54,825 
Valuation allowance(12,286)(13,040)
Total deferred tax assets134,010 161,104 
Deferred Tax Liabilities: 
Unbilled revenue— (5,595)
Prepaid expense(6,065)(8,136)
Right-of-use assets, operating leases(49,618)(60,181)
Intangibles(42,863)(40,121)
Undistributed earnings(2,200)(3,136)
Property and equipment(621)(85)
Total deferred tax liabilities(101,367)(117,254)
Net deferred tax assets$32,643 $43,850 
Reconciliation of the beginning and ending amounts of unrecognized tax benefits A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Beginning balance$12,899 $9,228 $9,169 
Additions for current fiscal year tax positions— 2,171 700 
Additions for prior fiscal year tax positions— 1,500 — 
Reductions for prior fiscal year tax positions(3,014)— (641)
Settlements(977)— — 
Ending balance$8,908 $12,899 $9,228 
v3.22.2.2
Long-Term Debt (Tables)
 12 Months Ended
Oct. 02, 2022
Debt Disclosure [Abstract]  
Schedule of long-term debt
Long-term debt consisted of the following:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Credit facilities$258,754 $212,500 
Less: Current portion of long-term debt(12,504)(12,500)
Long-term debt$246,250 $200,000 
Schedule of maturities of long-term debt
The following table presents scheduled maturities of our long-term debt:
 Amount
 (in thousands)
202312,504 
202412,500 
202512,500 
202612,500 
2027208,750 
Total$258,754 
v3.22.2.2
Leases (Tables)
 12 Months Ended
Oct. 02, 2022
Leases [Abstract]  
Summary of components of lease cost
The components of lease costs are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating lease cost$86,725 $91,076 
Sublease income(150)(106)
Total lease cost$86,575 $90,970 
Supplemental cash flow information related to leases is as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating cash flows for operating leases$71,365 $81,943 
Right-of-use assets obtained in exchange for new operating lease liabilities $44,096 $72,076 
Summary of supplemental balance sheet and other information
Supplemental balance sheet and other information related to leases are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Operating leases:
Right-of-use assets$182,319 $215,422 
Lease liabilities:
Current$57,865 $67,452 
Long-term146,285 174,285 
Total operating lease liabilities$204,150 $241,737 
Weighted-average remaining lease term:
Operating leases5 years5 years
Weighted-average discount rate:
Operating leases2.2 %2.2 %
Summary of maturity of future undiscounted cash flows associated with operating lease liabilities A maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities as of October 2, 2022 is as follows:
Amount
(in thousands)
2023$61,703 
202447,520 
202535,466 
202623,481 
202716,961 
Beyond31,927 
Total lease payments217,058 
Less: imputed interest(12,908)
Total present value of lease liabilities$204,150 
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans (Tables)
 12 Months Ended
Oct. 02, 2022
Stockholders' Equity Note [Abstract]  
Schedule of the stock-based compensation and related income tax benefits
The following table presents our stock-based compensation and related income tax benefits:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands)
Total stock-based compensation$26,227 $23,067 $19,424 
Income tax benefit related to stock-based compensation(5,377)(4,910)(4,318)
Stock-based compensation, net of tax benefit$20,850 $18,157 $15,106 
Schedule of stock option activity
The following table presents our stock option activity for fiscal year ended October 2, 2022:
 Number of
Options
(in thousands)		Weighted-
Average
Exercise Price
per Share		Weighted-
Average
Remaining
Contractual
Term
(in years)		Aggregate
Intrinsic Value
(in thousands)
Outstanding on October 3, 2021214 $38.80   
Exercised(46)39.44   
Forfeited— —   
Outstanding at October 2, 2022168 $38.62 4.04$15,086 
Vested or expected to vest at October 2, 2022168 $38.62 4.04$15,086 
Exercisable on October 2, 2022168 $38.62 4.04$15,086 
Schedule of RSU and PSU activity
A summary of the RSU and PSU activity under our stock plans is as follows:
RSUPSU
 Number of
Shares
(in thousands)		Weighted-
Average
Grant Date
Fair Value
per Share		Number of
Shares
(in thousands)		Weighted-
Average
Grant Date
Fair Value
per Share
Nonvested balance at September 29, 2019470 $50.42 384 $53.67 
Granted168 83.92 74 99.85 
Vested(178)46.87 (162)47.28 
Adjustment (1)
— — 64 48.36 
Forfeited(16)65.43 (5)83.98 
Nonvested balance at September 27, 2020444 63.93 355 64.83 
Granted118 122.0258 153.03 
Vested(167)59.64 (193)57.40 
Adjustment (1)
— — 99 57.40 
Forfeited(14)77.74 (1)74.05 
Nonvested balance at October 3, 2021381 83.30 318 82.96 
Granted78 184.6142 247.16 
Vested(147)77.47 (176)80.17 
Adjustment (1)
— — 88 80.63 
Forfeited(13)109.01 — — 
Nonvested balance at October 2, 2022299 $111.40 272 $109.23 
(1) Fiscal 2020 includes a payout adjustment of 63,643 PSUs due to the actual performance level achieved for PSUs granted in fiscal 2017 that vested during fiscal 2020. Fiscal 2021 includes a payout adjustment of 99,214 PSUs due to the actual performance level achieved for PSUs granted in fiscal 2018 that vested during fiscal 2021. Fiscal 2022 includes a payout adjustment of 88,198 PSUs due to the actual performance level achieved for PSUs granted in fiscal 2019 that vested during fiscal 2022.
Summary of shares purchased, weighted-average purchase price, and cash received, for shares purchased under the ESPP
The following table summarizes shares purchased, weighted-average purchase price, and cash received for shares purchased under the ESPP:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
 (in thousands, except for purchase price)
Shares purchased106 124 168 
Weighted-average purchase price per share$114.17 $86.16 $51.77 
Cash received from exercise of purchase rights$12,129 $10,705 $8,715 
Schedule of the assumptions used in the Black-Scholes option pricing model in estimating the grant date fair value of each award granted under the ESPP
The grant date fair value of each award granted under the ESPP was estimated using the Black-Scholes option pricing model with the following assumptions:
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27,
2020
Dividend yield1.0%1.0%1.0%
Expected stock price volatility32.2%47.9%26.5%
Risk-free rate of return, annual0.4%0.1%1.6%
Expected life (in years)111
v3.22.2.2
Retirement Plans (Tables)
 12 Months Ended
Oct. 02, 2022
Retirement Benefits [Abstract]  
Schedule of amounts recorded on the balance sheet
The Plan's funded status was as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Fair value of plan assets$36,250 $65,836 
Benefit obligation(33,006)(64,830)
Net surplus$3,244 $1,006 
Fair value of plan assets by major asset category The fair values of the plan assets by major asset categories were as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
(in thousands)
Equities$8,390 $13,646 
Mutual funds20,886 33,826 
Liability driven investment funds6,484 17,653 
Cash/other490 711 
Fair value of plan assets$36,250 $65,836 
Principle assumptions used for the benefit obligation valuation
Principal assumptions used for the benefit obligation in the valuation are as follows:
Fiscal Year Ended
October 2,
2022		October 3,
2021
Discount rate4.75%2.00%
Rate of inflation
2.95% to 3.55%
2.85% to 3.50%
v3.22.2.2
Earnings per Share (Tables)
 12 Months Ended
Oct. 02, 2022
Earnings Per Share [Abstract]  
Schedule of number of weighted-average shares used to compute basic and diluted EPS
The following table sets forth the number of weighted-average shares used to compute basic and diluted EPS:
Fiscal Year Ended
October 2,
2022		October 3,
2021		September 27,
2020
(in thousands, except per share data)
Net income attributable to Tetra Tech$263,125 $232,810 $173,859 
Weighted-average common shares outstanding – basic53,620 54,078 54,235 
Effect of diluted stock options and unvested restricted stock543 597 787 
Weighted-average common stock outstanding – diluted54,163 54,675 55,022 
Earnings per share attributable to Tetra Tech:   
Basic$4.91 $4.31 $3.21 
Diluted$4.86 $4.26 $3.16 
v3.22.2.2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Oct. 02, 2022
Equity [Abstract]  
Summary of reclassifications out of accumulated other comprehensive income (loss)
The accumulated balances and reporting period activities for fiscal 2022, 2021 and 2020 related to reclassifications out of accumulated other comprehensive income are summarized as follows:
 Foreign
Currency
Translation
Adjustments		Gain (Loss)
on Derivative
Instruments		Accumulated
Other
Comprehensive
Income (Loss)
 (in thousands)
Balances at September 29, 2019$(149,711)$(10,873)$(160,584)
Other comprehensive income (loss) before reclassifications3,436 (599)2,837 
Amounts reclassified from accumulated other comprehensive income
Interest rate contracts, net of tax (1)
— (4,039)(4,039)
Net current-period other comprehensive income (loss)3,436 (4,638)(1,202)
Balances at September 27, 2020$(146,275)$(15,511)$(161,786)
Other comprehensive income before reclassifications30,641 12,175 42,816 
Amounts reclassified from accumulated other comprehensive income   
Interest rate contracts, net of tax (1)
— (6,058)(6,058)
Net current-period other comprehensive income30,641 6,117 36,758 
Balances at October 3, 2021$(115,634)$(9,394)$(125,028)
Other comprehensive income before reclassifications(94,922)15,937 (78,985)
Amounts reclassified from accumulated other comprehensive income   
Interest rate contracts, net of tax (1)
— (4,131)(4,131)
Net current-period other comprehensive income(94,922)11,806 (83,116)
Balances at October 2, 2022$(210,556)$2,412 $(208,144)
(1) This accumulated other comprehensive component is reclassified to "Interest expense" in our consolidated statements of income. See Note 14, "Derivative Financial Instruments", for more information.
v3.22.2.2
Reportable Segments (Tables)
 12 Months Ended
Oct. 02, 2022
Segment Reporting [Abstract]  
Summarized financial information of reportable segments
The following tables present summarized financial information of our reportable segments:
Reportable Segments
 Fiscal Year Ended
 October 2,
2022		October 3,
2021		September 27, 2020
 (in thousands)
Revenue 
   
GSG$1,820,868 $1,772,905 $1,578,332 
CIG1,738,436 1,500,074 1,471,097 
RCM— 613 198 
Elimination of inter-segment revenue(55,256)(60,079)(54,736)
Total revenue$3,504,048 $3,213,513 $2,994,891 
Income from operations
GSG$198,448 $174,755 $146,273 
CIG194,142 152,262 136,418 
Corporate (1)
(52,144)(48,316)(41,600)
Total income from operations$340,446 $278,701 $241,091 
(1) Includes goodwill and intangible assets impairment charges, amortization of intangibles, other costs and other income not allocable to segments. The intangible asset amortization expense for fiscal 2022, 2021 and 2020 was $13.2 million, $11.5 million and $11.6 million, respectively. Additionally, Corporate results included income (loss) for fair value adjustments to contingent consideration liabilities of $(0.3) million, $3.3 million and $15.0 million for fiscal 2022,
2021 and 2020, respectively. Corporate results in fiscal 2020 also included $15.8 million goodwill impairment charges. See Note 6 - "Goodwill and Intangible Assets" for more information.
Balance at
 October 2,
2022		October 3,
2021
 (in thousands)
Total Assets 
  
GSG$558,764 $545,533 
CIG688,640 698,916 
RCM2 11,360 
Corporate (1)
1,375,370 1,320,753 
Total assets$2,622,776 $2,576,562 
(1) Corporate assets consist of intercompany eliminations and assets not allocated to our reportable segments including goodwill, intangible assets, deferred income taxes and certain other assets.
Schedule of geographic information
Geographic Information
 Fiscal Year Ended
Revenue:October 2,
2022		October 3,
2021		September 27, 2020
(in thousands)
United States$2,416,586 $2,256,086 $2,107,459 
Foreign countries (1)
1,087,462 957,427 887,432 
Total $3,504,048 $3,213,513 $2,994,891 
 Balance at
Long-lived assets (2):
October 2,
2022		October 3,
2021
(in thousands)
United States$199,875 $215,689 
Foreign countries (1)
77,305 87,771 
Total $277,180 $303,460 
(1) Includes revenue and long-lived assets from our foreign operations, primarily in Canada, Australia and the United Kingdom, and revenue generated from non-U.S. clients.
(2) Excludes goodwill, intangible assets and deferred income taxes.
v3.22.2.2
Related Party Transactions (Tables)
 12 Months Ended
Oct. 02, 2022
Related Party Transactions [Abstract]  
Schedule of related party transactions Our consolidated balance sheets also included the following amounts related to these services:
Balance at
October 2, 2022October 3, 2021
(in thousands)
Accounts receivable, net$16,818 $19,082 
Contract assets2,935 5,092 
Contract liabilities3,464 3,026 
v3.22.2.2
Quarterly Financial Information – Unaudited (Tables)
 12 Months Ended
Oct. 02, 2022
Quarterly Financial Information Disclosure [Abstract]  
Schedule of unaudited quarterly data
 First
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
 (in thousands, except per share data)
Fiscal Year 2022    
Revenue$858,510 $852,744 $890,231 $902,562 
Income from operations87,220 74,520 83,905 94,802 
Net income attributable to Tetra Tech68,489 53,040 58,650 82,947 
Earnings per share attributable to Tetra Tech:    
Basic$1.27 $0.99 $1.10 $1.56 
Diluted$1.25 $0.98 $1.09 $1.55 
Weighted-average common shares outstanding:    
Basic53,937 53,834 53,507 53,148 
Diluted54,577 54,346 54,006 53,667 
Fiscal Year 2021    
Revenue$765,104 $754,764 $801,633 $892,012 
Income from operations66,252 60,807 69,807 81,836 
Net income attributable to Tetra Tech52,436 45,517 51,903 82,954 
Earnings per share attributable to Tetra Tech:    
Basic$0.97 $0.84 $0.96 $1.54 
Diluted$0.96 $0.83 $0.95 $1.52 
Weighted-average common shares outstanding:    
Basic53,927 54,187 54,117 54,019 
Diluted54,637 54,736 54,666 54,597 
v3.22.2.2
Description of Business (Details)
 12 Months Ended
Oct. 02, 2022
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 2
v3.22.2.2
Basis of Presentation and Preparation - Cash and Cash Equivalents and Accounts Receivable (Details)
 12 Months Ended
Oct. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Maximum term of original maturity to classify instrument as cash equivalent 90 days
Period for billing and collecting unbilled receivables 12 months
v3.22.2.2
Basis of Presentation and Preparation - Property and Equipment (Details) - Equipment, furniture and fixtures
 12 Months Ended
Oct. 02, 2022
Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 7 years
v3.22.2.2
Basis of Presentation and Preparation - Goodwill and Intangible Assets (Details)
 12 Months Ended
Oct. 02, 2022
level
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of levels below operating/reportable segments at which goodwill impairment testing is performed 1
v3.22.2.2
Basis of Presentation and Preparation - Contingent Consideration, and Concentration of Credit Risk (Details)
 12 Months Ended
Oct. 02, 2022
Institution
Concentration of Credit Risk  
Financial institutions, in any such number of which investment exposure is limited 1
Accounts receivable due from various agencies of the U.S. federal government (as a percent) 23.00%
U.S. government  
Concentration of Credit Risk  
Revenue from customers (as a percent) 48.00%
U.S. commercial  
Concentration of Credit Risk  
Revenue from customers (as a percent) 21.00%
International  
Concentration of Credit Risk  
Revenue from customers (as a percent) 31.00%
Minimum  
Contingent Consideration  
Earn-out period 3 years
Maximum  
Contingent Consideration  
Earn-out period 5 years
v3.22.2.2
Basis of Presentation and Preparation - Narrative (Details)
$ in Millions
Oct. 02, 2022
USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Government assistance, amount, cumulative, current $ 26.0
Government assistance, amount expected to be recognized in next twelve months 9.0
Government assistance, amount, cumulative, noncurrent $ 17.0
v3.22.2.2
Revenue and Contract Balances - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Oct. 02, 2022
Jul. 03, 2022
Apr. 03, 2022
Jan. 02, 2022
Oct. 03, 2021
Jun. 27, 2021
Mar. 28, 2021
Dec. 27, 2020
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Disaggregation of Revenue [Line Items]                      
Revenue $ 902,562 $ 890,231 $ 852,744 $ 858,510 $ 892,012 $ 801,633 $ 754,764 $ 765,104 $ 3,504,048 $ 3,213,513 $ 2,994,891
Fixed-price                      
Disaggregation of Revenue [Line Items]                      
Revenue                 1,317,993 1,191,244 1,078,432
Time-and-materials                      
Disaggregation of Revenue [Line Items]                      
Revenue                 1,637,019 1,492,813 1,391,592
Cost-plus                      
Disaggregation of Revenue [Line Items]                      
Revenue                 549,036 529,456 524,867
U.S. federal government                      
Disaggregation of Revenue [Line Items]                      
Revenue                 1,064,347 1,081,608 993,835
U.S. state and local government                      
Disaggregation of Revenue [Line Items]                      
Revenue                 603,286 536,309 439,019
U.S. commercial                      
Disaggregation of Revenue [Line Items]                      
Revenue                 748,953 638,169 674,605
International                      
Disaggregation of Revenue [Line Items]                      
Revenue                 $ 1,087,462 $ 957,427 $ 887,432
v3.22.2.2
Revenue and Contract Balances - Summary of Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Disaggregation of Revenue [Line Items]    
Contract assets $ 92,405 $ 103,784
Contract liabilities 241,340 190,403
Net contract liabilities (148,935) (86,619)
Contract retentions    
Disaggregation of Revenue [Line Items]    
Contract assets $ 23,300 $ 12,200
v3.22.2.2
Revenue and Contract Balances - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Disaggregation of Revenue [Line Items]    
Contract liability revenue recognized during the period $ 125,000 $ 119,000
Liabilities for anticipated losses 10,000 12,700
Estimated cost to complete the related contracts $ 80,000 104,000
Period for billing and collecting unbilled receivables 12 months  
Unbilled accounts receivable related to claims and requests for equitable adjustment on contracts $ 0 11,000
Remaining unsatisfied performance obligation $ 3,721,634  
Remaining performance obligation, termination notice period one 30 days  
Remaining performance obligation, termination notice period two 60 years  
Remaining performance obligation, termination notice period three 90 days  
CIG    
Disaggregation of Revenue [Line Items]    
Gains (losses) due to change in contract value   $ 2,800
v3.22.2.2
Revenue and Contract Balances - Accounts Receivable, Net (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Revenue from Contract with Customer [Abstract]    
Billed $ 491,700 $ 432,814
Unbilled 267,161 240,536
Total accounts receivable 758,861 673,350
Allowance for doubtful accounts (3,749) (4,352)
Total accounts receivable, net $ 755,112 $ 668,998
v3.22.2.2
Revenue and Contract Balances - Remaining Unsatisfied Performance Obligations (Details)
$ in Thousands
Oct. 02, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining unsatisfied performance obligation $ 3,721,634
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-03  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining unsatisfied performance obligation $ 2,394,090
Remaining unsatisfied performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-02  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining unsatisfied performance obligation $ 1,327,544
Remaining unsatisfied performance obligation, expected timing of satisfaction
v3.22.2.2
Stock Repurchase and Dividends - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 09, 2022
Nov. 07, 2022
Aug. 26, 2022
May 27, 2022
Feb. 25, 2022
Dec. 20, 2021
Sep. 03, 2021
May 28, 2021
Feb. 26, 2021
Dec. 11, 2020
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Oct. 05, 2021
Equity, Class of Treasury Stock [Line Items]                            
Shares repurchased (in shares)                     1,341,679      
Average price (in dollars per share)                     $ 149.07      
Share repurchases total cost                     $ 200,000,000      
Cash dividends paid per share (in dollars per share)     $ 0.23 $ 0.23 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.17 $ 0.17 $ 0.86 $ 0.74 $ 0.64  
Forecast                            
Equity, Class of Treasury Stock [Line Items]                            
Cash dividends paid per share (in dollars per share) $ 0.23                          
Subsequent Event                            
Equity, Class of Treasury Stock [Line Items]                            
Quarterly cash dividend declared (in dollars per share)   $ 0.23                        
October 2021 Stock Repurchase Program                            
Equity, Class of Treasury Stock [Line Items]                            
Maximum repurchase amount under stock repurchase program                           $ 400,000,000
Remaining authorized repurchase amount                     $ 347,800,000      
January 2020 Stock Repurchase Program                            
Equity, Class of Treasury Stock [Line Items]                            
Remaining authorized repurchase amount                       $ 147,800,000    
v3.22.2.2
Stock Repurchase and Dividends - Schedule of Dividends Declared and Paid (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Aug. 26, 2022
May 27, 2022
Feb. 25, 2022
Dec. 20, 2021
Sep. 03, 2021
May 28, 2021
Feb. 26, 2021
Dec. 11, 2020
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Stock Repurchase And Dividends [Abstract]                      
Dividend paid per share (in dollars per share) $ 0.23 $ 0.23 $ 0.20 $ 0.20 $ 0.20 $ 0.20 $ 0.17 $ 0.17 $ 0.86 $ 0.74 $ 0.64
Dividends paid $ 12,226 $ 12,311 $ 10,769 $ 10,793 $ 10,800 $ 10,831 $ 9,212 $ 9,198 $ 46,099 $ 40,041  
v3.22.2.2
Acquisitions - Narrative (Details)
£ / shares in Units, $ in Thousands, £ in Millions, $ in Millions
 3 Months Ended 6 Months Ended 12 Months Ended
Sep. 23, 2022
employee
£ / shares
Jan. 31, 2023
GBP (£)
Sep. 27, 2020
USD ($)
Mar. 29, 2020
USD ($)
Mar. 31, 2019
USD ($)
Apr. 01, 2018
AUD ($)
Oct. 02, 2022
USD ($)
acquisition
Oct. 03, 2021
USD ($)
employee
Sep. 27, 2020
USD ($)
acquisition
Sep. 27, 2020
AUD ($)
acquisition
Sep. 29, 2019
USD ($)
Sep. 29, 2019
AUD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2018
AUD ($)
Sep. 27, 2020
AUD ($)
Business Acquisition [Line Items]                              
Number Of Acquisitions | acquisition             4                
Contingent earn-out liability             $ 65,600                
Fair value adjustments to contingent consideration liabilities             $ (329) $ 3,273 $ 14,971            
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]             Foreign currency translation adjustments, net of tax Foreign currency translation adjustments, net of tax Foreign currency translation adjustments, net of tax Foreign currency translation adjustments, net of tax          
Interest expense | Contingent consideration                              
Business Acquisition [Line Items]                              
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]             Interest Expense Interest Expense Interest Expense Interest Expense          
Operating income | Contingent consideration                              
Business Acquisition [Line Items]                              
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]             Income from operations Income from operations Income from operations Income from operations          
Minimum                              
Business Acquisition [Line Items]                              
Earn-out period             3 years                
Significant unobservable input, earn-out period             3 years                
Maximum                              
Business Acquisition [Line Items]                              
Earn-out period             5 years                
Significant unobservable input, earn-out period             5 years                
Existing customer contracts | Minimum                              
Business Acquisition [Line Items]                              
Useful life of intangible assets             1 year                
Existing customer contracts | Maximum                              
Business Acquisition [Line Items]                              
Useful life of intangible assets             10 years                
Technology and trade names | Minimum                              
Business Acquisition [Line Items]                              
Useful life of intangible assets             3 years                
Technology and trade names | Maximum                              
Business Acquisition [Line Items]                              
Useful life of intangible assets             5 years                
RPS Group plc                              
Business Acquisition [Line Items]                              
Pence per share expected to be acquired | £ / shares £ 2.22                            
Number of employees | employee 5,000                            
RPS Group plc | Forecast | Subsequent Event                              
Business Acquisition [Line Items]                              
Percentage of outstanding shares expected to be acquired   100.00%                          
Expected consideration received upon closing of acquisition | £   £ 636                          
Business acquisitions                              
Business Acquisition [Line Items]                              
Fair value of acquisition purchase price             $ 88,300 $ 151,700 $ 88,600            
Initial cash payments             44,000 101,400 71,400            
Payables related to estimated post-closing adjustments             (2,500)   700            
Promissory note             15,500                
Contingent earn-out liability     $ 16,500       31,300 50,300 16,500            
Aggregate maximum of contingent consideration     28,000       47,000 $ 74,000 $ 28,000            
Earn-out period                 3 years 3 years          
Number of acquisitions | acquisition                 2 2          
Business acquisitions | Minimum                              
Business Acquisition [Line Items]                              
Earn-out period               3 years              
Business acquisitions | Maximum                              
Business Acquisition [Line Items]                              
Earn-out period               4 years              
Hoare Lea                              
Business Acquisition [Line Items]                              
Number of employees | employee               900              
NDY                              
Business Acquisition [Line Items]                              
Contingent earn-out liability     1,800     $ 9.4     $ 1,800           $ 2.6
Aggregate maximum of contingent consideration           $ 25.0                  
Earn-out period           3 years                  
Fair value adjustments to contingent consideration liabilities                 3,700 $ 5.2 $ (5,400) $ (7.9) $ (2,100) $ (3.0)  
Maximum contingent consideration, year one           $ 7.4                  
Maximum contingent consideration, year two           8.8                  
Maximum contingent consideration, year three           $ 8.8                  
Percentage of maximum potential earn-out           38.00%                  
EGT                              
Business Acquisition [Line Items]                              
Contingent earn-out liability     7,500   $ 21,100       7,500            
Aggregate maximum of contingent consideration         $ 25,000                    
Earn-out period         3 years                    
Fair value adjustments to contingent consideration liabilities                 4,700            
Maximum contingent consideration, year one         $ 8,500                    
Maximum contingent consideration, year two         9,000                    
Maximum contingent consideration, year three         $ 7,500                    
Percentage of maximum potential earn-out         84.00%                    
SEG                              
Business Acquisition [Line Items]                              
Contingent earn-out liability     8,100 $ 11,300         $ 8,100            
Aggregate maximum of contingent consideration       $ 20,000                      
Earn-out period       3 years                      
Fair value adjustments to contingent consideration liabilities     $ 3,400                        
Maximum contingent consideration, year one       $ 5,000                      
Maximum contingent consideration, year two       7,000                      
Maximum contingent consideration, year three       $ 8,000                      
Percentage of maximum potential earn-out       57.00%                      
All acquisitions                              
Business Acquisition [Line Items]                              
Aggregate maximum of contingent consideration             $ 120,900                
v3.22.2.2
Acquisitions - Changes in the Carrying Value of Estimated Contingent Earn-Out Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Earn-out payments:      
Reported as cash used in financing activities $ (20,124) $ (20,251) $ (22,900)
Contingent consideration      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 59,297 32,617 52,992
Acquisition date fair value of contingent earn-out liabilities 31,341 50,235 16,581
Foreign exchange impact (7,152) (596) (247)
Earn-out payments:      
Reported as cash used in operating activities (310) (427) 0
Reported as cash used in financing activities (20,123) (20,251) (22,900)
Ending balance $ 65,566 $ 59,297 $ 32,617
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Liability, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] Gain (loss) on cash flow hedge valuations, net of tax Gain (loss) on cash flow hedge valuations, net of tax Gain (loss) on cash flow hedge valuations, net of tax
Interest expense | Contingent consideration      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Earnings adjustment to contingent earn-out liabilities $ 2,184 $ 992 $ 1,162
Operating income | Contingent consideration      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Earnings adjustment to contingent earn-out liabilities $ 329 $ (3,273) $ (14,971)
v3.22.2.2
Goodwill and Intangible Assets - Changes in Carrying Value of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Goodwill [Roll Forward]    
Balance at beginning of the period $ 1,108,578 $ 993,498
Goodwill reallocation 0  
Acquisitions 68,683 90,591
Translation and other (66,849) 24,489
Balance at end of the period 1,110,412 1,108,578
GSG    
Goodwill [Roll Forward]    
Balance at beginning of the period 538,433 516,315
Goodwill reallocation (51,497)  
Acquisitions 42,365 15,112
Translation and other (10,199) 7,006
Balance at end of the period 519,102 538,433
CIG    
Goodwill [Roll Forward]    
Balance at beginning of the period 570,145 477,183
Goodwill reallocation 51,497  
Acquisitions 26,318 75,479
Translation and other (56,650) 17,483
Balance at end of the period $ 591,310 $ 570,145
v3.22.2.2
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
 12 Months Ended
Jul. 04, 2022
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Goodwill [Line Items]        
Impairment of goodwill $ 0 $ 0 $ 0 $ 15,800,000
Percentage of excess of fair value over carrying value (less than) 165.00%      
Amortization expense for intangible assets   13,200,000 11,500,000 $ 11,600,000
Reduction in intangible assets, foreign currency translation adjustment   5,300,000    
GSG        
Goodwill [Line Items]        
Gross amounts of goodwill   536,800,000 556,100,000  
Accumulated impairment   17,700,000 17,700,000  
CIG        
Goodwill [Line Items]        
Gross amounts of goodwill   712,800,000 691,600,000  
Accumulated impairment   $ 121,500,000 $ 121,500,000  
v3.22.2.2
Goodwill and Intangible Assets - Gross Amount and Accumulated Amortization of Acquired Finite-lived Intangibles (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Amount $ 87,673 $ 118,971
Accumulated Amortization (58,510) (80,981)
Net Amount $ 29,163 37,990
Client relations    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 5 years 6 months  
Gross Amount $ 41,676 69,455
Accumulated Amortization (21,092) (43,984)
Net Amount $ 20,584 25,471
Backlog    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 7 months 6 days  
Gross Amount $ 33,286 34,577
Accumulated Amortization (29,990) (30,670)
Net Amount $ 3,296 3,907
Technology and trade names    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 3 years 8 months 12 days  
Gross Amount $ 12,711 14,939
Accumulated Amortization (7,428) (6,327)
Net Amount $ 5,283 $ 8,612
v3.22.2.2
Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 $ 9,788  
2024 5,244  
2025 4,411  
2026 3,590  
2027 2,168  
Beyond 3,962  
Net Amount $ 29,163 $ 37,990
v3.22.2.2
Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 129,138 $ 131,242  
Accumulated depreciation (96,822) (93,509)  
Property and equipment, net 32,316 37,733  
Depreciation expense related to property and equipment 13,900 12,300 $ 13,000
Equipment, furniture and fixtures      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 96,710 94,780  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 32,428 $ 36,462  
v3.22.2.2
Income Taxes - Income Before Income Taxes, by Geographical Area (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Income before income taxes:      
United States $ 262,428 $ 211,222 $ 209,443
Foreign 86,338 55,648 18,548
Income before income tax expense $ 348,766 $ 266,870 $ 227,991
v3.22.2.2
Income Taxes - Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Current:      
Federal $ 47,447 $ 41,056 $ 24,102
State 9,613 9,893 6,872
Foreign 26,332 18,887 20,398
Total current income tax expense 83,392 69,836 51,372
Deferred:      
Federal (424) (6,034) 2,187
State (382) (2,060) 870
Foreign 3,016 (27,703) (328)
Total deferred income tax expense (benefit) 2,210 (35,797) 2,729
Total income tax expense $ 85,602 $ 34,039 $ 54,101
v3.22.2.2
Income Taxes - Income Tax Rate Reconciliation (Details)
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Income Tax Disclosure [Abstract]      
Tax at federal statutory rate 21.00% 21.00% 21.00%
State taxes, net of federal benefit 2.10% 2.30% 2.70%
Research and Development ("R&D") credits (1.00%) (2.60%) (2.20%)
Tax differential on foreign earnings 1.00% 0.90% 0.70%
Non-taxable foreign interest income 0.00% (1.00%) (1.10%)
Goodwill 0.00% 0.00% 1.50%
Stock compensation (2.00%) (3.30%) (2.20%)
Valuation allowance 0.20% (9.30%) 1.60%
Change in uncertain tax positions (1.10%) 1.70% 0.40%
Return to provision 1.40% (3.70%) 0.80%
Disallowed officer compensation 1.90% 2.00% 0.20%
Cash repatriation 0.10% 2.10% 0.00%
Unremitted earnings (0.20%) 1.00% 0.00%
Deferred tax adjustments 0.10% 0.80% (1.30%)
Other 1.00% 0.90% 1.60%
Total income tax expense 24.50% 12.80% 23.70%
v3.22.2.2
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Oct. 03, 2021
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Sep. 29, 2019
Operating Loss Carryforwards [Line Items]          
Effective tax rate   24.50% 12.80% 23.70%  
Reduction in income tax expense due to excess tax benefits on share-based payments   $ 10,300 $ 12,900 $ 8,300  
Effective tax rates, excluding valuation allowance release, non-deductible goodwill impairment charge, transaction costs, and excess tax benefits on share-based payments   27.50% 25.70% 25.60%  
Deferred tax liabilities for undistributed foreign earnings $ 3,136 $ 2,200 $ 3,136    
Undistributed earnings of foreign subsidiaries   81,700      
Valuation allowance 13,040 12,286 13,040    
Unrecognized tax benefits 12,899 8,908 12,899 $ 9,228 $ 9,169
Accrual of additional interest and penalties   500 800 800  
Reduction in accrued interest and penalties   400 0 0  
Amount of interest and penalties accrued 5,200 5,300 5,200 $ 4,400  
Canada          
Operating Loss Carryforwards [Line Items]          
Foreign earnings repatriated     80,000    
Tax expense related to repatriation of foreign earnings     5,600    
Undistributed foreign earnings no longer indefinitely reinvested 20,100   20,100    
Deferred tax liabilities for undistributed foreign earnings 3,100   3,100    
Foreign          
Operating Loss Carryforwards [Line Items]          
Tax benefit primarily consisting of valuation allowances $ 21,600   $ 21,600    
Net operating loss carry forwards which expire at various dates   17,900      
Net operating loss carryforwards   119,100      
Net operating loss carry forwards which have no expiration date   101,200      
Capital loss carryforwards   18,400      
Research and development credits   3,900      
State          
Operating Loss Carryforwards [Line Items]          
Net operating loss carry forwards which expire at various dates   $ 43,700      
v3.22.2.2
Income Taxes - Schedule of Temporary Differences Comprising the Net Deferred Income Tax Liability (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Deferred Tax Assets:    
State taxes $ 1,238 $ 1,342
Reserves and contingent liabilities 5,023 6,662
Accounts receivable including the allowance for doubtful accounts 4,986 5,917
Accrued liabilities 35,973 41,657
Lease liabilities, operating leases 49,618 60,181
Stock-based compensation 2,925 3,560
Unbilled revenue 4,885 0
Loss carry-forwards 41,648 54,825
Valuation allowance (12,286) (13,040)
Total deferred tax assets 134,010 161,104
Deferred Tax Liabilities:    
Unbilled revenue 0 (5,595)
Prepaid expense (6,065) (8,136)
Right-of-use assets, operating leases (49,618) (60,181)
Intangibles (42,863) (40,121)
Undistributed earnings (2,200) (3,136)
Property and equipment (621) (85)
Total deferred tax liabilities (101,367) (117,254)
Net deferred tax assets $ 32,643 $ 43,850
v3.22.2.2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Reconciliation of unrecognized tax benefits [Roll Forward]      
Beginning balance $ 12,899 $ 9,228 $ 9,169
Additions for current fiscal year tax positions 0 2,171 700
Additions for prior fiscal year tax positions 0 1,500 0
Reductions for prior fiscal year tax positions (3,014) 0 (641)
Settlements (977) 0 0
Ending balance $ 8,908 $ 12,899 $ 9,228
v3.22.2.2
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Debt Disclosure [Abstract]    
Credit facilities $ 258,754 $ 212,500
Less: Current portion of long-term debt (12,504) (12,500)
Long-term debt $ 246,250 $ 200,000
v3.22.2.2
Long-Term Debt - Narrative (Details) - USD ($)
Feb. 18, 2022
Oct. 26, 2022
Oct. 02, 2022
Oct. 03, 2021
Debt Instrument [Line Items]        
Annual principal payment, amortization percentage 5.00%      
Borrowings outstanding     $ 258,754,000 $ 212,500,000
Bank overdrafts     0  
Standby Letters of Credit        
Debt Instrument [Line Items]        
Letters of credit outstanding     44,400,000  
Amended Credit Agreement        
Debt Instrument [Line Items]        
Accordion feature, higher borrowing capacity option $ 1,050,000,000.00      
Maximum borrowing capacity $ 750,000,000      
Debt instrument term 5 years      
Accordion feature, increase limit $ 300,000,000      
Amount outstanding under credit facility     $ 258,800,000  
Weighted-average interest rate (as a percent)     1.97%  
Weighted-average rate including the effects of interest rate swap agreement (as a percent)     3.60%  
Debt covenant, maximum consolidated leverage ratio 3.25      
Debt covenant, minimum consolidated interest coverage ratio 3.00      
Consolidated leverage ratio     0.76  
Consolidated fixed charge coverage ratio     29.52  
Amended Credit Agreement | Subsequent Event        
Debt Instrument [Line Items]        
Accordion feature, higher borrowing capacity option   $ 1,550,000,000    
Amended Credit Agreement | Term Loan Facility        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 250,000,000      
Borrowings outstanding     $ 243,800,000  
Amended Credit Agreement | Revolving Credit Facility        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 500,000,000      
Borrowings outstanding     15,000,000  
Amount available for borrowing under facility     484,300,000  
Amended Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum        
Debt Instrument [Line Items]        
Basis spread on variable rate 1.00%      
Amended Credit Agreement | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum        
Debt Instrument [Line Items]        
Basis spread on variable rate 1.875%      
Amended Credit Agreement | Revolving Credit Facility | Base Rate | Federal Funds Effective Swap Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate 0.50%      
Amended Credit Agreement | Revolving Credit Facility | Base Rate | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate        
Debt Instrument [Line Items]        
Basis spread on variable rate 1.00%      
Amended Credit Agreement | Revolving Credit Facility | Base Rate | Minimum        
Debt Instrument [Line Items]        
Basis spread on variable rate 0.00%      
Amended Credit Agreement | Revolving Credit Facility | Base Rate | Maximum        
Debt Instrument [Line Items]        
Basis spread on variable rate 0.875%      
Amended Credit Agreement | Standby Letters of Credit        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 100,000,000      
Letters of credit outstanding     700,000  
Amended Credit Agreement | Swingline loan        
Debt Instrument [Line Items]        
Maximum borrowing capacity 20,000,000      
Amended Credit Agreement | Multicurrency borrowings and letter of credit        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 300,000,000      
Amended Credit Agreement | New Term Loan Facility | Subsequent Event        
Debt Instrument [Line Items]        
Maximum borrowing capacity   $ 500,000,000    
Other credit facilities        
Debt Instrument [Line Items]        
Amount outstanding under credit facility     $ 0  
v3.22.2.2
Long-Term Debt - Scheduled Maturities of Long-Term Debt (Details)
$ in Thousands
Oct. 02, 2022
USD ($)
Debt Disclosure [Abstract]  
2023 $ 12,504
2024 12,500
2025 12,500
2026 12,500
2027 208,750
Total $ 258,754
v3.22.2.2
Leases - Narrative (Details)
Oct. 02, 2022
Lessee, Lease, Description [Line Items]  
Renewal term (up to) 5 years
Minimum  
Lessee, Lease, Description [Line Items]  
Remaining lease term 1 month
Maximum  
Lessee, Lease, Description [Line Items]  
Remaining lease term 10 years
v3.22.2.2
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Leases [Abstract]    
Operating lease cost $ 86,725 $ 91,076
Sublease income (150) (106)
Total lease cost $ 86,575 $ 90,970
v3.22.2.2
Leases - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Leases [Abstract]    
Operating cash flows for operating leases $ 71,365 $ 81,943
Right-of-use assets obtained in exchange for new operating lease liabilities $ 44,096 $ 72,076
v3.22.2.2
Leases - Supplemental Balance Sheet and Other Information (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Operating leases:    
Right-of-use assets $ 182,319 $ 215,422
Lease liabilities:    
Current 57,865 67,452
Long-term 146,285 174,285
Total operating lease liabilities $ 204,150 $ 241,737
Weighted-average remaining lease term:    
Operating leases 5 years 5 years
Weighted-average discount rate:    
Operating leases 2.20% 2.20%
v3.22.2.2
Leases - Maturity Analysis of the Future Undiscounted Cash Flow of Operating Leases (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Leases [Abstract]    
2023 $ 61,703  
2024 47,520  
2025 35,466  
2026 23,481  
2027 16,961  
Beyond 31,927  
Total lease payments 217,058  
Less: imputed interest (12,908)  
Total present value of lease liabilities $ 204,150 $ 241,737
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans - Narrative (Details) - USD ($)
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Sep. 29, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Options granted in the period (in shares) 0 0    
Stock options exercised $ 1,806,000 $ 11,250,000 $ 10,334,000  
Stock-based compensation expense 26,227,000 23,067,000 19,424,000  
Income tax benefit realized from RSUs and PSUs 5,377,000 4,910,000 4,318,000  
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Aggregate intrinsic value of options exercised 5,700,000 29,400,000 22,400,000  
Stock options exercised 1,800,000 11,300,000 10,300,000  
Income tax benefit realized from exercises of nonqualified stock options and disqualifying dispositions of qualified options $ 1,300,000 $ 6,700,000 $ 4,900,000  
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 4 years      
Awards granted (in shares) 77,844 117,934 167,525  
Weighted-average grant date fair value (in dollars per share) $ 184.61 $ 122.02 $ 83.92  
Awards outstanding (in shares) 299,055 381,000 444,000 470,000
RSUs | Director        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 1 year      
PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Vesting period 3 years      
Percentage of shares that ultimately vest depending on growth in diluted earnings per share 50.00%      
Percentage of shares that ultimately vest based on relative total shareholder return over the vesting period 50.00%      
Awards granted (in shares) 41,734 57,542 74,011  
Weighted-average grant date fair value (in dollars per share) $ 247.16 $ 153.03 $ 99.85  
Awards outstanding (in shares) 272,000 318,000 355,000 384,000
RSUs and PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized stock-based compensation cost $ 35,900,000      
Stock-based compensation expense 23,900,000 $ 20,900,000 $ 17,700,000  
Income tax benefit realized from RSUs and PSUs $ 9,100,000 6,200,000 3,400,000  
2015 EIP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
The number every share or unit issued counts against aggregate share limit (in shares) 3      
2018 EIP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Available for future awards (in shares) 2,200,000      
ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Available for future awards (in shares) 380,784      
Maximum amount that an employee can contribute during a purchase right period $ 5,000      
Exercise price as percentage of fair market value on the first day of purchase right period 100.00%      
Exercise price as percentage of fair market value on the last day of purchase right period 85.00%      
Stock options exercised $ 12,129,000 10,705,000 8,715,000  
Stock-based compensation expense 2,300,000 2,000,000 $ 1,200,000  
Unrecognized stock-based compensation cost 600,000 $ 500,000    
Accumulated amount by participants to purchase the entity's common stock $ 11,000,000      
Grant date on or after March 6, 2006 | 2005 EIP | Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expiration period 8 years      
Grant date on or after March 6, 2006 | 2005 EIP | Stock options | Each anniversary of grant date        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of vesting rights after specified period 25.00%      
Grant date on or after March 6, 2006 | 2005 EIP | RSUs | Each anniversary of grant date        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Percentage of vesting rights after specified period 25.00%      
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans - Stock-based Compensation and Income Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Share-based Payment Arrangement [Abstract]      
Total stock-based compensation $ 26,227 $ 23,067 $ 19,424
Income tax benefit related to stock-based compensation (5,377) (4,910) (4,318)
Stock-based compensation, net of tax benefit $ 20,850 $ 18,157 $ 15,106
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans - Stock Option Activity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Oct. 02, 2022
USD ($)
$ / shares
shares
Number of Options  
Outstanding at the beginning of the period (in shares) | shares 214
Exercised (in shares) | shares (46)
Forfeited (in shares) | shares 0
Outstanding at the end of the period (in shares) | shares 168
Vested or expected to vest at the end of the period (in shares) | shares 168
Exercisable at the end of the period (in shares) | shares 168
Weighted- Average Exercise Price per Share  
Outstanding at the beginning of the period (in dollars per share) | $ / shares $ 38.80
Exercised (in dollars per share) | $ / shares 39.44
Forfeited (in dollars per share) | $ / shares 0
Outstanding at the end of the period (in dollars per share) | $ / shares 38.62
Vested or expected to vest (in dollars per share) | $ / shares 38.62
Exercisable (in dollars per share) | $ / shares $ 38.62
Weighted-Average Remaining Contractual Term  
Outstanding 4 years 14 days
Vested or expected to vest 4 years 14 days
Exercisable 4 years 14 days
Aggregate Intrinsic Value  
Outstanding | $ $ 15,086
Vested or expected to vest | $ 15,086
Exercisable | $ $ 15,086
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans - RSU and PSU Activity (Details) - $ / shares
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
RSUs      
Number of Shares      
Nonvested balance at the beginning of the period (in shares) 381,000 444,000 470,000
Granted (in shares) 77,844 117,934 167,525
Vested (in shares) (147,000) (167,000) (178,000)
Forfeited (in shares) (13,000) (14,000) (16,000)
Nonvested balance at the end of the period (in shares) 299,055 381,000 444,000
Weighted-Average Grant Date Fair Value      
Nonvested balance at the beginning of the period (in dollars per share) $ 83.30 $ 63.93 $ 50.42
Granted (in dollars per share) 184.61 122.02 83.92
Vested (in dollars per share) 77.47 59.64 46.87
Forfeited (in dollars per share) 109.01 77.74 65.43
Nonvested balance at the end of the period (in dollars per share) $ 111.40 $ 83.30 $ 63.93
PSUs      
Number of Shares      
Nonvested balance at the beginning of the period (in shares) 318,000 355,000 384,000
Granted (in shares) 41,734 57,542 74,011
Vested (in shares) (176,000) (193,000) (162,000)
Adjustment (in shares) 88,198 99,214 63,643
Forfeited (in shares) 0 (1,000) (5,000)
Nonvested balance at the end of the period (in shares) 272,000 318,000 355,000
Weighted-Average Grant Date Fair Value      
Nonvested balance at the beginning of the period (in dollars per share) $ 82.96 $ 64.83 $ 53.67
Granted (in dollars per share) 247.16 153.03 99.85
Vested (in dollars per share) 80.17 57.40 47.28
Adjustment (in dollars per share) 80.63 57.40 48.36
Forfeited (in dollars per share) 0 74.05 83.98
Nonvested balance at the end of the period (in dollars per share) $ 109.23 $ 82.96 $ 64.83
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans - ESPP Summary (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Cash received from exercise of purchase rights $ 1,806 $ 11,250 $ 10,334
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares purchased (in shares) 106 124 168
Weighted-average purchase price per share (in dollars per share) $ 114.17 $ 86.16 $ 51.77
Cash received from exercise of purchase rights $ 12,129 $ 10,705 $ 8,715
v3.22.2.2
Stockholders' Equity and Stock Compensation Plans - ESPP Fair Value Assumptions (Details) - ESPP
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 1.00% 1.00% 1.00%
Expected stock price volatility 32.20% 47.90% 26.50%
Risk-free rate of return, annual 0.40% 0.10% 1.60%
Expected life (in years) 1 year 1 year 1 year
v3.22.2.2
Retirement Plans - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Retirement Benefits [Abstract]      
Employer contributions to the plans $ 29.3 $ 26.9 $ 25.0
Assets related to deferred compensation plans 36.7 41.4  
Liabilities related to deferred compensation plans $ 36.3 $ 41.1  
Maximum age pension plan was open for new entrants 24 years    
Defined benefit plan, benefits paid during period $ 1.0    
v3.22.2.2
Retirement Plans - Amounts Recorded on the Balance Sheet (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Retirement Benefits [Abstract]    
Fair value of plan assets $ 36,250 $ 65,836
Benefit obligation (33,006) (64,830)
Net surplus $ 3,244 $ 1,006
v3.22.2.2
Retirement Plans - Fair Value of Plan Assets by Main Asset Category (Details) - USD ($)
$ in Thousands
Oct. 02, 2022
Oct. 03, 2021
Defined Benefit Plan, Plan Assets, Category [Line Items]    
Fair value of plan assets $ 36,250 $ 65,836
Equities    
Defined Benefit Plan, Plan Assets, Category [Line Items]    
Fair value of plan assets 8,390 13,646
Mutual Fund    
Defined Benefit Plan, Plan Assets, Category [Line Items]    
Fair value of plan assets 20,886 33,826
Liability driven investment funds    
Defined Benefit Plan, Plan Assets, Category [Line Items]    
Fair value of plan assets 6,484 17,653
Cash/other    
Defined Benefit Plan, Plan Assets, Category [Line Items]    
Fair value of plan assets $ 490 $ 711
v3.22.2.2
Retirement Plans - Assumptions used for Benefit Obligation Valuation (Details) - Pension Plan
Oct. 02, 2022
Oct. 03, 2021
Defined Benefit Plan Disclosure [Line Items]    
Discount rate 4.75% 2.00%
Minimum    
Defined Benefit Plan Disclosure [Line Items]    
Rate of inflation 2.95% 2.85%
Maximum    
Defined Benefit Plan Disclosure [Line Items]    
Rate of inflation 3.55% 3.50%
v3.22.2.2
Earnings per Share - Calculation (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Oct. 02, 2022
Jul. 03, 2022
Apr. 03, 2022
Jan. 02, 2022
Oct. 03, 2021
Jun. 27, 2021
Mar. 28, 2021
Dec. 27, 2020
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Earnings Per Share [Abstract]                      
Net income attributable to Tetra Tech $ 82,947 $ 58,650 $ 53,040 $ 68,489 $ 82,954 $ 51,903 $ 45,517 $ 52,436 $ 263,125 $ 232,810 $ 173,859
Net income attributable to Tetra Tech $ 82,947 $ 58,650 $ 53,040 $ 68,489 $ 82,954 $ 51,903 $ 45,517 $ 52,436 $ 263,125 $ 232,810 $ 173,859
Weighted-average common shares outstanding – basic (in shares) 53,148 53,507 53,834 53,937 54,019 54,117 54,187 53,927 53,620 54,078 54,235
Effect of diluted stock options and unvested restricted stock (in shares)                 543 597 787
Weighted-average common stock outstanding – diluted (in shares) 53,667 54,006 54,346 54,577 54,597 54,666 54,736 54,637 54,163 54,675 55,022
Earnings per share attributable to Tetra Tech:                      
Basic (in dollars per share) $ 1.56 $ 1.10 $ 0.99 $ 1.27 $ 1.54 $ 0.96 $ 0.84 $ 0.97 $ 4.91 $ 4.31 $ 3.21
Diluted (in dollars per share) $ 1.55 $ 1.09 $ 0.98 $ 1.25 $ 1.52 $ 0.95 $ 0.83 $ 0.96 $ 4.86 $ 4.26 $ 3.16
v3.22.2.2
Earnings per Share - Antidilutive Securities (Details) - shares
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Earnings Per Share [Abstract]      
Securities excluded from the calculation of dilutive potential common shares (in shares) 0 0 0
v3.22.2.2
Derivative Financial Instruments - Narrative (Details)
$ in Thousands, £ in Millions
 12 Months Ended
Oct. 02, 2022
USD ($)
Oct. 03, 2021
USD ($)
Sep. 27, 2020
USD ($)
Sep. 30, 2018
agreement
Dec. 31, 2022
Dec. 30, 2022
USD ($)
Dec. 30, 2022
GBP (£)
Derivative [Line Items]              
Gain (loss) on cash flow hedge valuations, net of tax $ 11,806 $ 6,117 $ (4,638)        
Forecast | RPS Group plc              
Derivative [Line Items]              
Derivative, forward exchange rate         1.0852    
Interest Rate Swap | Cash flow hedges | Derivatives designated as hedging instruments              
Derivative [Line Items]              
Notional amount $ 200,000            
Number of derivative agreements | agreement       5      
Fixed interest rate 2.79%            
Fair value of interest rate swap agreements $ 2,400            
Fair value of interest rate swap agreements   $ 9,400          
Loss to be reclassified during next twelve months 3,100            
Interest Rate Swap 1 | Cash flow hedges | Derivatives designated as hedging instruments              
Derivative [Line Items]              
Notional amount 40,000            
Interest Rate Swap 2 | Cash flow hedges | Derivatives designated as hedging instruments              
Derivative [Line Items]              
Notional amount 40,000            
Interest Rate Swap 3 | Cash flow hedges | Derivatives designated as hedging instruments              
Derivative [Line Items]              
Notional amount 40,000            
Interest Rate Swap 4 | Cash flow hedges | Derivatives designated as hedging instruments              
Derivative [Line Items]              
Notional amount 40,000            
Interest Rate Swap 5 | Cash flow hedges | Derivatives designated as hedging instruments              
Derivative [Line Items]              
Notional amount 40,000            
Foreign Exchange Contract | RPS Group plc              
Derivative [Line Items]              
Foreign currency forward contract, asset fair value $ 19,900            
Foreign Exchange Contract | Forecast | RPS Group plc              
Derivative [Line Items]              
Notional amount           $ 774,800 £ 714.0
v3.22.2.2
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance $ 1,234,291 $ 1,037,373 $ 989,464
Amounts reclassified from accumulated other comprehensive income      
Other comprehensive income (loss), net of tax (83,127) 36,761 (1,203)
Ending balance 1,183,137 1,234,291 1,037,373
Accumulated Other Comprehensive Income (Loss)      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (125,028) (161,786) (160,584)
Other comprehensive income (loss) before reclassifications (78,985) 42,816 2,837
Amounts reclassified from accumulated other comprehensive income      
Interest rate contracts, net of tax (4,131) (6,058) (4,039)
Other comprehensive income (loss), net of tax (83,116) 36,758 (1,202)
Ending balance (208,144) (125,028) (161,786)
Foreign Currency Translation Adjustments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (115,634) (146,275) (149,711)
Other comprehensive income (loss) before reclassifications (94,922) 30,641 3,436
Amounts reclassified from accumulated other comprehensive income      
Other comprehensive income (loss), net of tax (94,922) 30,641 3,436
Ending balance (210,556) (115,634) (146,275)
Gain (Loss) on Derivative Instruments      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Beginning balance (9,394) (15,511) (10,873)
Other comprehensive income (loss) before reclassifications 15,937 12,175 (599)
Amounts reclassified from accumulated other comprehensive income      
Interest rate contracts, net of tax (4,131) (6,058) (4,039)
Other comprehensive income (loss), net of tax 11,806 6,117 (4,638)
Ending balance $ 2,412 $ (9,394) $ (15,511)
v3.22.2.2
Fair Value Measurements (Details)
$ in Millions
Oct. 02, 2022
USD ($)
Amended Credit Agreement  
Debt Instrument [Line Items]  
Amount outstanding under credit facility $ 258.8
v3.22.2.2
Commitments and Contingencies (Details)
Jul. 15, 2019
action
Commitments and Contingencies Disclosure [Abstract]  
Number of qui tam actions 3
v3.22.2.2
Reportable Segments - Financial Information (Details)
 3 Months Ended 12 Months Ended
Jul. 04, 2022
USD ($)
Oct. 02, 2022
USD ($)
Jul. 03, 2022
USD ($)
Apr. 03, 2022
USD ($)
Jan. 02, 2022
USD ($)
Oct. 03, 2021
USD ($)
Jun. 27, 2021
USD ($)
Mar. 28, 2021
USD ($)
Dec. 27, 2020
USD ($)
Oct. 02, 2022
USD ($)
segment
Oct. 03, 2021
USD ($)
Sep. 27, 2020
USD ($)
Financial information concerning reportable segments                        
Number of reportable segments | segment                   2    
Revenue   $ 902,562,000 $ 890,231,000 $ 852,744,000 $ 858,510,000 $ 892,012,000 $ 801,633,000 $ 754,764,000 $ 765,104,000 $ 3,504,048,000 $ 3,213,513,000 $ 2,994,891,000
Income from operations   94,802,000 $ 83,905,000 $ 74,520,000 $ 87,220,000 81,836,000 $ 69,807,000 $ 60,807,000 $ 66,252,000 340,446,000 278,701,000 241,091,000
Amortization expense for intangible assets                   13,200,000 11,500,000 11,600,000
Fair value adjustments to contingent consideration liabilities                   (329,000) 3,273,000 14,971,000
Impairment of goodwill $ 0                 0 0 15,800,000
Total assets   2,622,776,000       2,576,562,000       2,622,776,000 2,576,562,000  
Operating segments | GSG                        
Financial information concerning reportable segments                        
Revenue                   1,820,868,000 1,772,905,000 1,578,332,000
Income from operations                   198,448,000 174,755,000 146,273,000
Total assets   558,764,000       545,533,000       558,764,000 545,533,000  
Operating segments | CIG                        
Financial information concerning reportable segments                        
Revenue                   1,738,436,000 1,500,074,000 1,471,097,000
Income from operations                   194,142,000 152,262,000 136,418,000
Total assets   688,640,000       698,916,000       688,640,000 698,916,000  
Operating segments | RCM                        
Financial information concerning reportable segments                        
Revenue                   0 613,000 198,000
Total assets   2,000       11,360,000       2,000 11,360,000  
Elimination of inter-segment revenue                        
Financial information concerning reportable segments                        
Revenue                   (55,256,000) (60,079,000) (54,736,000)
Corporate                        
Financial information concerning reportable segments                        
Income from operations                   (52,144,000) (48,316,000) $ (41,600,000)
Total assets   $ 1,375,370,000       $ 1,320,753,000       $ 1,375,370,000 $ 1,320,753,000  
v3.22.2.2
Reportable Segments - Geographic Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Oct. 02, 2022
Jul. 03, 2022
Apr. 03, 2022
Jan. 02, 2022
Oct. 03, 2021
Jun. 27, 2021
Mar. 28, 2021
Dec. 27, 2020
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Reportable Segments                      
Revenue $ 902,562 $ 890,231 $ 852,744 $ 858,510 $ 892,012 $ 801,633 $ 754,764 $ 765,104 $ 3,504,048 $ 3,213,513 $ 2,994,891
Long-lived assets 277,180       303,460       277,180 303,460  
United States                      
Reportable Segments                      
Revenue                 2,416,586 2,256,086 2,107,459
Long-lived assets 199,875       215,689       199,875 215,689  
Foreign countries                      
Reportable Segments                      
Revenue                 1,087,462 957,427 $ 887,432
Long-lived assets $ 77,305       $ 87,771       $ 77,305 $ 87,771  
v3.22.2.2
Reportable Segments - Narrative (Details) - USD ($)
$ in Millions
Oct. 02, 2022
May 31, 2022
Oct. 03, 2021
Financial information concerning reportable segments      
Cash settlement for claim receivable $ 0   $ 11
RCM      
Financial information concerning reportable segments      
Cash settlement for claim receivable   $ 11  
v3.22.2.2
Related Party Transactions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Related Party Transactions [Abstract]      
Related party revenues $ 96,000 $ 95,500 $ 88,200
Related party expenses 91,700 92,400 $ 86,400
Accounts receivable, net 16,818 19,082  
Contract assets 2,935 5,092  
Contract liabilities $ 3,464 $ 3,026  
v3.22.2.2
Quarterly Financial Information – Unaudited - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Business Acquisition [Line Items]          
Unrealized gain on foreign currency forward contract $ 19,900   $ 19,904 $ 0 $ 0
Foreign          
Business Acquisition [Line Items]          
Tax benefit primarily consisting of valuation allowances   $ 21,600   $ 21,600  
v3.22.2.2
Quarterly Financial Information – Unaudited - Summary of Quarterly Information (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Oct. 02, 2022
Jul. 03, 2022
Apr. 03, 2022
Jan. 02, 2022
Oct. 03, 2021
Jun. 27, 2021
Mar. 28, 2021
Dec. 27, 2020
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Quarterly Financial Information Disclosure [Abstract]                      
Revenue $ 902,562 $ 890,231 $ 852,744 $ 858,510 $ 892,012 $ 801,633 $ 754,764 $ 765,104 $ 3,504,048 $ 3,213,513 $ 2,994,891
Income from operations 94,802 83,905 74,520 87,220 81,836 69,807 60,807 66,252 340,446 278,701 241,091
Net income attributable to Tetra Tech 82,947 58,650 53,040 68,489 82,954 51,903 45,517 52,436 263,125 232,810 173,859
Net income attributable to Tetra Tech $ 82,947 $ 58,650 $ 53,040 $ 68,489 $ 82,954 $ 51,903 $ 45,517 $ 52,436 $ 263,125 $ 232,810 $ 173,859
Earnings per share attributable to Tetra Tech:                      
Basic (in dollars per share) $ 1.56 $ 1.10 $ 0.99 $ 1.27 $ 1.54 $ 0.96 $ 0.84 $ 0.97 $ 4.91 $ 4.31 $ 3.21
Diluted (in dollars per share) $ 1.55 $ 1.09 $ 0.98 $ 1.25 $ 1.52 $ 0.95 $ 0.83 $ 0.96 $ 4.86 $ 4.26 $ 3.16
Weighted-average common shares outstanding:                      
Basic (in shares) 53,148 53,507 53,834 53,937 54,019 54,117 54,187 53,927 53,620 54,078 54,235
Diluted (in shares) 53,667 54,006 54,346 54,577 54,597 54,666 54,736 54,637 54,163 54,675 55,022
v3.22.2.2
SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Oct. 02, 2022
Oct. 03, 2021
Sep. 27, 2020
Allowance for doubtful accounts      
Changes in valuation and qualifying accounts and reserves      
Balance at Beginning of Period $ 4,352 $ 7,147 $ 10,562
Charged to Costs and Expenses (73) (4,130) 1,472
Deductions (400) 195 (4,887)
Other (130) 1,140 0
Balance at End of Period 3,749 4,352 7,147
Income tax valuation allowance      
Changes in valuation and qualifying accounts and reserves      
Balance at Beginning of Period 13,040 24,395 20,543
Charged to Costs and Expenses 0 13,698 3,852
Deductions (162) (26,059) 0
Other (592) 1,006 0
Balance at End of Period $ 12,286 $ 13,040 $ 24,395