Jacobs Solutions Inc. Files Q3 2024 10-Q

TL;DR

Jacobs Solutions Q3 10-Q is in. Check financials.

AI Summary

Jacobs Solutions Inc. filed its 10-Q for the period ending June 28, 2024. The filing covers financial performance and operational details for the third quarter of fiscal year 2024. Key financial data and disclosures relevant to investors are presented.

Why It Matters

This filing provides investors with the latest financial performance data for Jacobs Solutions Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures, but the specific financial details and market conditions can introduce varying levels of risk.

Key Numbers

• Q3 2024 — Fiscal Quarter (Reporting period for the 10-Q filing.)
• 2024-06-28 — Report End Date (The specific date through which financial information is reported.)
• 2023-09-30 — Prior Year End Date (Reference point for year-over-year comparisons.)

Key Players & Entities

• JACOBS SOLUTIONS INC. (company) — Filer
• 20240628 (date) — Period of Report
• 20240806 (date) — Filed as of Date
• 1999 BRYAN STREET, SUITE 3500 (address) — Business Address
• DALLAS (location) — City
• TX (location) — State
• 75201 (postal_code) — ZIP Code
• 214-583-8500 (phone_number) — Business Phone
• JACOBS ENGINEERING GROUP INC /DE/ (company) — Former Company Name
• 19920703 (date) — Date of Name Change

FAQ

Key Financial Figures

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

Filing Documents

• jec-20240628.htm (10-Q) — 1550KB
• exhibit101secondamendmentt.htm (EX-10.1) — 63KB
• exhibit102-fifthamendmentt.htm (EX-10.2) — 69KB
• exhibit221-listofissuersof.htm (EX-22.1) — 3KB
• exhibit311q3fy2024.htm (EX-31.1) — 10KB
• exhibit312q3fy2024.htm (EX-31.2) — 9KB
• exhibit321q3fy2024.htm (EX-32.1) — 4KB
• exhibit322q3fy2024.htm (EX-32.2) — 4KB
• 0000052988-24-000053.txt ( ) — 8825KB
• jec-20240628.xsd (EX-101.SCH) — 58KB
• jec-20240628_cal.xml (EX-101.CAL) — 93KB
• jec-20240628_def.xml (EX-101.DEF) — 257KB
• jec-20240628_lab.xml (EX-101.LAB) — 734KB
• jec-20240628_pre.xml (EX-101.PRE) — 509KB
• jec-20240628_htm.xml (XML) — 1287KB

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 10

Notes to Consolidated Financial Statements - Unaudited

Notes to Consolidated Financial Statements - Unaudited 11

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 34

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 51

Controls and Procedures

Item 4. Controls and Procedures 56

OTHER INFORMATION

PART II OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 53

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 53

Other Information

Item 5. Other Information 54

Exhibits

Item 6. Exhibits 55

SIGNATURES

SIGNATURES 56 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) June 28, 2024 September 29, 2023 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 1,208,661 $ 926,582 Receivables and contract assets 3,774,227 3,558,806 Prepaid expenses and other 154,721 204,965 Total current assets 5,137,609 4,690,353 Property, Equipment and Improvements, net 366,231 357,032 Other Noncurrent Assets: Goodwill 7,404,867 7,343,526 Intangibles, net 1,156,577 1,271,943 Deferred income tax assets 101,748 53,131 Operating lease right-of-use assets 383,911 414,384 Miscellaneous 497,347 486,740 Total other noncurrent assets 9,544,450 9,569,724 $ 15,048,290 $ 14,617,109 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt $ 825,166 $ 61,430 Accounts payable 1,262,783 1,143,802 Accrued liabilities 1,303,207 1,301,644 Operating lease liability 147,659 152,077 Contract liabilities 965,440 763,608 Total current liabilities 4,504,255 3,422,561 Long-term debt 2,091,456 2,813,471 Liabilities relating to defined benefit pension and retirement plans 268,166 258,540 Deferred income tax liabilities 147,006 221,158 Long-term operating lease liability 482,262 543,230 Other deferred liabilities 144,250 125,088 Commitments and Contingencies — — Redeemable Noncontrolling interests 734,465 632,979 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 - 124,253,511 shares and 125,976,998 shares as of June 28, 2024 and September 29, 2023, respectively 124,254 125,977 Additional paid-in capital 2,741,750 2,735,325 Retained earnings 4,557,204 4,542,872 Accumulated other comprehensive loss ( 806,415 ) ( 857,954 ) Total Jacobs stockholders' equity 6,616,793 6,546,220 No

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 as of June 28, 2024, and for the t

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 for the Company in the first quarter of fiscal 2026. 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. ASU 2023-07 will be effective for the Company's annual fiscal 2025 period. The Company is evaluating the impact of this guidance on its consolidated financial statements and re

View Full Filing

View this 10-Q filing on SEC EDGAR