Jacobs Solutions Inc. Files 10-Q for Period Ending December 29, 2023

AI Summary

JACOBS SOLUTIONS INC. (J) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. Jacobs Solutions Inc. filed a 10-Q report for the period ending December 29, 2023. The filing covers the first quarter of fiscal year 2024. The company's former name was Jacobs Engineering Group Inc /DE/. The company is incorporated in Delaware. The filing was made on February 6, 2024.

Why It Matters

For investors and stakeholders tracking JACOBS SOLUTIONS INC., this filing contains several important signals. This 10-Q filing provides investors with an updated view of Jacobs Solutions Inc.'s financial health and operational performance for the most recent quarter. Understanding the details within this report is crucial for assessing the company's current standing and future prospects in the heavy construction and engineering sector.

Risk Assessment

Risk Level: low — JACOBS SOLUTIONS INC. shows low risk based on this filing. The filing is a standard 10-Q, which is a routine quarterly report and does not contain unusual or high-risk information.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand Jacobs Solutions Inc.'s performance and outlook.

Key Numbers

• 2023-12-29 — Conformed Period of Report (The end date of the reporting period.)
• 2024-02-06 — Filed As Of Date (The date the report was filed with the SEC.)
• 10-Q — Form Type (The type of SEC filing.)
• 0000052988 — Central Index Key (Unique identifier for the filer.)

Key Players & Entities

• JACOBS SOLUTIONS INC. (company) — Filer name
• Jacobs Engineering Group Inc /DE/ (company) — Former company name
• 2023-12-29 (date) — Conformed period of report
• 2024-02-06 (date) — Filed as of date
• 1999 BRYAN STREET, SUITE 3500 (address) — Business address street 1
• DALLAS (location) — Business address city
• TX (location) — Business address state
• 75201 (postal_code) — Business address zip

FAQ

Industry Context

Jacobs Solutions Inc. operates in the heavy construction and engineering sector, providing a wide range of services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and other key performance indicators.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into the company's performance drivers and outlook.
3. Check for any new risk factors or significant changes in existing ones.

Key Dates

• 2024-02-06: Filing Date — Indicates the official submission date of the 10-Q report.
• 2023-12-29: Reporting Period End Date — Marks the conclusion of the financial period covered by the report.

Year-Over-Year Comparison

This is a 10-Q filing, which is a standard quarterly report. Specific comparative data from the previous filing is not detailed in this header information.

Key Financial Figures

• $1 — hange on Which Registered Common Stock $1 par value J New York Stock Exchange I

Filing Documents

• jec-20231229.htm (10-Q) — 1183KB
• exhibit31-jsicompositearce.htm (EX-3.1) — 40KB
• exhibit101-firstamendmentt.htm (EX-10.1) — 69KB
• exhibit102-firstamendmentt.htm (EX-10.2) — 74KB
• exhbit103-fourthamendmentt.htm (EX-10.3) — 77KB
• exhibit104-formofgrantagre.htm (EX-10.4) — 44KB
• exhibit105-formofgrantagre.htm (EX-10.5) — 65KB
• exhibit106-formofgrantagre.htm (EX-10.6) — 52KB
• exhibit107-formofgrantagre.htm (EX-10.7) — 75KB
• exhibit108-formofgrantagre.htm (EX-10.8) — 51KB
• exhibit109-formofgrantagre.htm (EX-10.9) — 71KB
• exhibit311q1fy2024.htm (EX-31.1) — 10KB
• exhibit312q1fy2024.htm (EX-31.2) — 10KB
• exhibit321q1fy2024.htm (EX-32.1) — 4KB
• exhibit322q1fy2024.htm (EX-32.2) — 4KB
• image_0.jpg (GRAPHIC) — 120KB
• image_01.jpg (GRAPHIC) — 120KB
• image_02.jpg (GRAPHIC) — 120KB
• image_03.jpg (GRAPHIC) — 120KB
• image_04.jpg (GRAPHIC) — 120KB
• image_05.jpg (GRAPHIC) — 120KB
• 0000052988-24-000017.txt ( ) — 9398KB
• jec-20231229.xsd (EX-101.SCH) — 58KB
• jec-20231229_cal.xml (EX-101.CAL) — 91KB
• jec-20231229_def.xml (EX-101.DEF) — 253KB
• jec-20231229_lab.xml (EX-101.LAB) — 769KB
• jec-20231229_pre.xml (EX-101.PRE) — 495KB
• jec-20231229_htm.xml (XML) — 1014KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Consolidated Balance Sheets - Unaudited 5 Consolidated Statements of Earnings - Unaudited 6 Consolidated Statements of Comprehensive Income - Unaudited 7 Consolidated Statements of Stockholders' Equity - Unaudited 8 Consolidated Statements of Cash Flows - Unaudited 9

Notes to Consolidated Financial Statements - Unaudited

Notes to Consolidated Financial Statements - Unaudited 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 56

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 48

Risk Factors

Item 1A. Risk Factors 48

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 48

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 48

Other Information

Item 5. Other Information 48

Exhibits

Item 6. Exhibits 50

SIGNATURES

SIGNATURES 52 Page 3

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Page 4 JACOBS SOLUTIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share information) December 29, 2023 September 29, 2023 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 1,142,227 $ 926,582 Receivables and contract assets 3,676,508 3,558,806 Prepaid expenses and other 156,533 204,965 Total current assets 4,975,268 4,690,353 Property, Equipment and Improvements, net 353,305 357,032 Other Noncurrent Assets: Goodwill 7,421,398 7,343,526 Intangibles, net 1,268,329 1,271,943 Deferred income tax assets 46,525 53,131 Operating lease right-of-use assets 405,748 414,384 Miscellaneous 481,631 486,740 Total other noncurrent assets 9,623,631 9,569,724 $ 14,952,204 $ 14,617,109 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Short-term debt $ 55,839 $ 61,430 Accounts payable 1,114,790 1,143,802 Accrued liabilities 1,375,553 1,301,644 Operating lease liability 152,472 152,077 Contract liabilities 945,892 763,608 Total current liabilities 3,644,546 3,422,561 Long-term debt 2,834,880 2,813,471 Liabilities relating to defined benefit pension and retirement plans 276,307 258,540 Deferred income tax liabilities 153,869 221,158 Long-term operating lease liability 522,670 543,230 Other deferred liabilities 131,006 125,088 Commitments and Contingencies Redeemable Noncontrolling interests 654,076 632,979 Stockholders' Equity: Capital stock: Preferred stock, $ 1 par value, authorized - 1,000,000 shares; issued and outstanding - none — — Common stock, $ 1 par value, authorized - 240,000,000 shares; issued and outstanding - 125,599,058 shares and 125,976,998 shares as of December 29, 2023 and September 29, 2023, respectively 125,599 125,977 Additional paid-in capital 2,729,416 2,735,325 Retained earnings 4,604,850 4,542,872 Accumulated other comprehensive loss ( 781,591 ) ( 857,954 ) Total Jacobs stockholders' equity 6,678,274 6,546,220 Noncontrolling intere

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of Presentation Unless the context otherwise requires: References herein to "Jacobs" are to Jacobs Solutions Inc. and its predecessors; References herein to the "Company", "we", "us" or "our" are to Jacobs Solutions Inc. and its consolidated subsidiaries; and References herein to the "Group" are to the combined economic interests and activities of the Company and the persons and entities holding noncontrolling interests in our consolidated subsidiaries. On August 29, 2022, Jacobs Engineering Group Inc. ("JEGI"), the predecessor to Jacobs Solutions Inc., implemented a holding company structure, which resulted in Jacobs Solutions Inc. becoming the parent company of, and successor issuer to, JEGI (the "Holding Company Reorganization"). For purposes of this report, references to Jacobs and the "Company", "we", "us" or "our" or our management or business at any point prior to the Holding Company Implementation Date refer to JEGI, or JEGI and its consolidated subsidiaries as the predecessor to Jacobs Solutions Inc. The accompanying consolidated financial statements and financial information included herein have been prepared pursuant to the interim period reporting requirements of Form 10-Q. Consequently, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted. Readers of this Quarterly Report on Form 10-Q should also read our consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 29, 2023 ("2023 Form 10-K"). In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of our consolidated financial statements at December 29, 2023, and for the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2023 Form 10-K for a discussion of other significant estimates and assumptions affecting our consolidated financial statements. 3. Fair Value and Fair Value Measurements Certain amounts included in the accompanying consolidated financial statements are presented at fair value. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants as of the date fair value is determined (the "measurement date"). When determining fair value, we consider the principal or most advantageous market in which we would transact, and we consider only those assumptions we believe a typical market participant would consider when pricing an asset or liability. In measuring fair value, we use the following inputs in the order of priority indicated: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets included in Level 1, such as (i) quoted prices for similar assets or liabilities; (ii) quoted prices in markets that have insufficient volume or infrequent transactions (e.g., less active markets); and (iii) model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data for substantially the full term of the asset or liability. Level 3 - Unobservable inputs to the valuation methodology that are significant to the fair value measurement. Please refer to Note 2- Significant Accounting Policies of Notes to Consolidated Financial Statements included in our 2023 Form 10-K for a more complete discussion of the various items within the consolidated financial statements measured at fair value and the methods used to determine fair valu

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) 4. New Accounting Pronouncements ASU 2023-09, Income Taxes , (Topic 740): Improvements to Income Tax Disclosures, provides qualitative and quantitative updates to the Company's effective income tax rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is also permitted. ASU 2023-09 will be effective in the Company's annual fiscal 2026 period. The Company has identified and is implementing changes to processes and internal controls to meet the standard's updated reporting and disclosure requirements. ASU 2023-07, Segment Reporting, (Topic 280): Improvements to Reportable Segment Disclosures, requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items to reconcile to segment profit or loss, and the title and position of the entity's CODM. The amendments in this update also expand the interim segment disclosure requirements. ASU 2023-07 is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the amendments in this update are required to be applied on a retrospective basis. The Company is evaluating the impact of this guidance on its consolidated financial statements and related disclosures. ASU 2023-06, Disclosure Improvements : Amendments - Codification

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) The following table further disaggregates our revenue by geographic area for the three months ended December 29, 2023 and December 30, 2022 (in thousands): Three Months Ended December 29, 2023 December 30, 2022 Revenues: United States $ 2,798,055 $ 2,536,114 Europe 925,197 854,734 Canada 63,375 61,829 Asia 30,940 34,824 India 35,743 40,344 Australia and New Zealand 173,771 161,040 Middle East and Africa 132,144 109,783 Total $ 4,159,225 $ 3,798,668 Contract Liabilities Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. Revenue recognized for the three months ended December 29, 2023 that was previously included in the contract liability balance on September 29, 2023 was $ 369.6 million. Revenue recognized for the three months ended December 30, 2022 that was included in the contract liability balance on September 30, 2022 was $ 330.3 million. Remaining Performance Obligation The Company's remaining performance obligations as of December 29, 2023 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. The Company had approximately $ 17.7 billion in remaining performance obligations as of December 29, 2023. The Company expects to recognize approximately 56 % of its remaining performance obligations into revenue within the next twelve months and the remaining 44 % thereafter. The majority of the remaining performance obligations after the first twelve months are expected to be recognized over a four year period. Although our remaining performance obligations reflect business volumes that are considered to be firm, normal business activities including scope adjustments, deferrals or cancellations may occur that impact volume or expected timing of their recognition. Remaining performance obligations are adjusted to reflect any known project cancellations, revisions to project scope and cost, foreign

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED) Three Months Ended December 29, 2023 December 30, 2022 Numerator for Basic and Diluted EPS: Net earnings attributable to Jacobs from continuing operations $ 172,184 $ 136,355 Preferred Redeemable Noncontrolling interests redemption value adjustment (See Note 15- PA Consulting Redeemable Noncontrolling Interests ) 1,766

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