2009 Jacobs Summary Annual Reports24.q4cdn.com/280511176/files/doc_financials...Australia, Africa,...

2 0 0 9 S U M M A R Y A N N U A L R E P O R T

Financial Highlights 1

Shareholders Message 2

Market Profiles 4

Refining 6

Infrastructure 8

Pharmaceuticals & Biotechnology 10

Buildings 12

Food, Beverage, Forest 14& Consumer Products

Automotive & Industrial 16

Chemicals & Basic Resources 18

Environmental Programs 20

Oil & Gas 22

Aerospace & Defense 24

Power & Utilities 26

Mission Critical Facilities 28

Board of Directors 30

Leadership 32

Analysis 36

Financial Data 38

JACOBS

2009 SUMMARY ANNUAL REPORT

Jacobs Engineering Group Inc.

is one of the world’s largest

and most diverse providers of

technical, professional,

and construction services,

including all aspects of

architecture, engineering and

construction, operations and

maintenance, as well as

scientific and specialty

consulting. We serve a broad

range of companies and

organizations, including

industrial, commercial, and

government clients across

multiple markets and

geographies.

Our global network includes

more than 160 offices in more

than 20 countries, with

operations in North America,

the United Kingdom, mainland

Europe, the Middle East, India,

Australia, Africa, and Asia.

Jacobs was founded in 1947

and our headquarters are in

Pasadena, California.

www.jacobs.com

2009 2008 2007October 2 September 26 September 28

Revenues $ 11,467,376 $ 11,252,159 $ 8,473,970

Net earnings 399,854 420,742 287,130

Per share information:

Basic EPS $ 3.26 $ 3.47 $ 2.42

Diluted EPS 3.21 3.38 2.35

Stockholders’ equity 21.14 18.30 15.34

Closing year-end stock price 43.51 55.04 75.58

Total assets $ 4,428,614 $ 4,278,238 $ 3,389,421

Stockholders’ equity 2,625,913 2,245,147 1,843,662

Return on average equity 16.42% 20.58% 17.58%

Stockholders of record 1,461 1,408 1,193

Backlog:

Technical professional services $ 8,209,300 $ 8,085,200 $ 6,188,500

Total 15,219,400 16,696,600 13,585,800

Permanent staff 38,900 43,700 36,400

$ 11,252,159

$ 8,473,970

07 08

$ 11,467,376

09

$ 420,742

$ 287,130

07 08

$ 399,854

09 07 08

$ 16,696,600

$ 13,585,800

09

$ 15,219,400

REVENUESin thousands

NET EARNINGSin thousands

TOTAL BACKLOGin thousands

F I N A N C I A L H I G H L I G H T SDollars in thousands, except per share information

1

2 2009 Summary Annual Report

ast year, as we entered Fiscal Year 2009, we realized it would be a challenging year, and it was.

Uncertain global market conditions and the cautious spending behavior of clients created an

environment where few companies, including Jacobs, were immune to the impact of the

global recession. We fell short of our expectations in 2009 and were disappointed to report earnings

below those of 2008. Still, our company performed well. Earnings, at $400 million, and backlog, at

$15.2 billion, were the second highest in our history, and we finished the year with $1 billion of

unrestricted cash.

Safety and the continued pursuit of our BeyondZero® initiative were highlights for us this year. 2009

was our second full year of integrating the program into our culture and practices, and the effect

on our employees, clients, and safety performance has been outstanding. Many of our clients and

suppliers have asked us to help them implement a similar program for their employees and job

sites. This is a great compliment to us and proof that our employees are not only embracing our

culture of caring, but also, in the true spirit of the effort, taking BeyondZero® beyond Jacobs.

Our consistent performance is due to our commitment to our core values: growth is an imperative;

we are a relationship-based company; and people are our greatest asset – all central to our culture.

In good times and bad, these values guide our leaders and employees to make the right decisions.

Core clients continue to contribute about 50 percent of our business.

As part of our commitment to our core values, we measure our employee satisfaction every other

year. Even under the taxing conditions imposed by the recession, our employee satisfaction scores

were up an average of four percentage points.

Every year we search for ways to help our clients solve some of their most difficult business

challenges and lower their costs, and this year was no different. Our low-cost model helped many

clients sustain operations, and our work share with India consistently delivered significant cost

savings. Through our Value Plus program, together with our clients, we identified cost savings, cost

avoidances, and performance improvements that totaled approximately $2.4 billion. Our clients

validated our strong relationships with Client Satisfaction Survey scores that remained near record

levels. We also released our first Sustainability Report this year.

We took more than $150 million of SG&A expense out of our business. Taking cost out of our

business was a vital part of dealing with difficult market conditions, and one we addressed well.

It has the benefit of making us more cost competitive as we move into 2010.

We were also happy to announce the addition of Peter Robertson to our Board of Directors. Peter,

former Vice Chairman of Chevron Corp., brings a wealth of knowledge and experience in the energy

business, and we are fortunate to have his insights on our Board.

FY09 HIGHLIGHTS

Revenues of $11.5 billion

Net earnings of $399.9 million

Backlog of $15.2 billion

Net cash of over $1 billion

Fiscal 2009 dilutedEPS of $3.21

$2.4 billion in savingsto our clients through ourValue Plus program

S H A R E H O L D E R S M E S S A G E

To Our Shareholders, Customers & Employees:

L

www.jacobs.com 3

With 2009 behind us, our attention is now on 2010.

There are signs of an economic recovery and some say the recession is over. This may be true;

however, we expect our industry to remain under pressure. We believe the current business

climate provides great opportunity for Jacobs, as we have always gained market share during

uncertain times.

Our priorities for 2010 are:

Sales: We were an early winner in the competition for stimulus-funded

projects in 2009; we expect to reap the benefits of these awards and anticipate

more throughout 2010. The downstream oil and gas business has slowed, but

several of our businesses remain very solid and some have opportunities for

significant growth in 2010 and beyond.

Recruitment and Retention: Current market conditions provide Jacobs with

tremendous recruitment opportunities. Recruiting and retaining the best

talent the market has to offer are critical to our ability to serve our clients and

grow the business.

Acquisitions: With our strong cash position and historic success, we are in an

excellent position to make acquisitions. We expect the next few years to be

ones with particularly attractive acquisition opportunities.

One of Jacobs greatest strengths is our market and geographic diversity. We have more than 12

distinct markets in which we are industry leaders. Our balanced business portfolio includes both

public and private sector work, and spreads across more than 20 countries around the world. This

great diversity, plus our focus on delivering superior customer value, supports our commitment to

grow our business an average of 15 percent per year, long term.

Adhering to core values has made us a successful company in the past and keeps us moving forward

today. We see many ways to grow and prosper in the coming year as we begin to power-out of this

recession. Jacobs is moving forward, meeting whatever comes in 2010 head-on.

Craig L. Martin Noel G. Watson

President & Chief Executive Officer Chairman of the Board

Left to right

Noel Watson & Craig Martin


M A R K E T P R O F I L E S

REFINING 6

Crude/vacuum units

Conversion: FCCU, hydroprocessing, coking

Clean fuels: gasoline and diesel

Reforming/aromatics

Treating/sulfur removal

INFRASTRUCTURE 8

Roadways, bridges, and IntelligentTransportation Systems

Railroads and transit

Water/wastewater conveyance and treatment

Underground structures and tunnels

Locks, dams, ports, and marine

Aviation

PHARMACEUTICALS & BIOTECHNOLOGY 10

Sterile products manufacturing

Bulk pharmaceuticals

Pharmaceutical finishing

Research and development laboratories,and pilot plants

Biotechnology

Fine chemicals

CHEMICALS & BASIC RESOURCES 18

Organic/inorganic chemicals

Olefins

Specialty polymers

Polyolefins

Phosphates and potash

ENVIRONMENTAL PROGRAMS 20

Accelerated environmental cleanup

Infrastructure sustainment, restoration,and modernization

Nuclear facilities decontaminationand decommissioning

Chemical and explosive ordnancedemilitarization

Environmental consulting, contaminatedlands, and flood control

OIL & GAS 22

Gas compression/transmission/treatment/handling

Sulfur recovery

Water treatment, disposal, and water flooding

Offshore platforms and topsides

Oil and gas production

Heavy oil production and oil sands extraction

www.jacobs.com 5

BUILDINGS 12

Government: administrative, security,and defense installations

Health/Research: replacement hospitalsand advanced research

Education: K-12 and higher education

Justice: courts, prisons, and jails

Corporate buildings and industrial installations

Retail and mixed-use centers, recreationcomplexes, and commercial facilities

FOOD, BEVERAGE, FOREST 14& CONSUMER PRODUCTS

Food processing, packaging, and material handling

Bottle, can, and keg packaging

Malting, brewing, fermenting, and blendingprocesses

New paper machines and rebuilds

Mill optimization—energy/utility maintenanceand shutdowns

Personal care product facilities

Converting and packaging

AUTOMOTIVE & INDUSTRIAL 16

Building, equipment, and systems layoutand integration

Automotive test facilities: powertrain test cells,emissions chambers, climatic wind tunnels,and aero/acoustic wind tunnels

Test facilities operations, maintenance,and metrology

Modeling and simulation

AEROSPACE & DEFENSE 24

Technical, engineering, and scientificmission support

Advanced aerospace research/development/testand evaluation facilities and laboratories

Information technology and enterpriseinformation support

POWER & UTILITIES 26

Utility/infrastructure master planning

Feasibility studies/concept design

Central plant design

CHP/cogeneration

Electrical distribution/substation design

Commissioning

Gasification and carbon capture technology

Renewable technologies

MISSION CRITICAL FACILITIES 28

High-energy physics installation

Nanoscience research and production facilities

Semiconductor facility base build programming,tool installation, and sustaining engineering

Program management

Building Information Modeling (BIM)

Computational Fluid Dynamics (CFD) Modeling


R E F I N I N G

British PetroleumCAT 3 Fractionator ProjectProgram management, engineering, procurement, and constructionTexas City, Texas

6 MillionHours worked without a lost work-day incident by Jacobs Field Services atthe BP Texas City Refinery. BP’s senior Corporate Executive commended JacobsField Services for achieving this major milestone in March of 2009.

www.jacobs.com 7

Government regulations continue to influence the need for improvements and additions

to refining facilities globally, and we see new environmental and energy legislation, such

as ambient air-quality standards for ozone and particulates, driving requirements in the

industry over the next several years.

In the Middle East, India, Asia, and South America, investments in new and expanded refinery

capacity are occurring to improve crude processing flexibility, add value at source, and respond to

growth in regional consumption. In Europe and North America, the client investment emphasis is

on existing assets to improve efficiency in the refining process.

We provide full-service engineering design, modular fabrication, construction management, and

asset management and maintenance services, most often through long-term partnering and

alliance agreements. As a market leader in regulatory-driven projects, we have the depth of

experience needed to assist our clients with energy, environmental, and carbon capture needs.

We also take an innovative approach on many projects. For example, our construction,

engineering, and planning teams together developed an inventive solution for a fractionator

replacement on a fluid catalytic cracker unit. The installation of a temporary remote foundation

allowed most of the work to be done on the vessel prior to the unit being shut down. The approach

shortened the planned unit outage by 28 days, resulting in a savings of $25 million.

Though the refining outlook for 2010 remains challenging, Jacobs is dedicated to helping our

clients achieve maximum value from their assets and navigate through new regulations.

Irving Oil Refinery MaintenanceSupport of strategic projects, maintenance projects,turnaround maintenance, and daily maintenanceSt. John, New Brunswick, Canada

MotivaMotiva Crude Expansion ProjectEngineering, procurement, construction management, and module fabricationModules from Jacobs’ Charleston, South Carolina, module shop to Port Arthur, Texas

“Your professional

analysis shows that

you and Jacobs have

the client’s best

interest in mind. I look

forward to working

with you and your

team at Jacobs in

the future.”Eric Coppock

Reliability Supervisor

Husky Energy

Lima Refinery


I N F R A S T R U C T U R E

Transport ScotlandUpper Forth Crossing at KincardineFeasibility, scheme and environmental assessments, statutory processes, site supervision, CDM safety coordinationKincardine, Scotland, United Kingdom

2 MegawattThe largest solar installation at an airport in America, for which Jacobsprovided concept development and construction services.

www.jacobs.com 9

Manchester-Boston Regional Airport Runway 24 Safety Area & EMASDesign, engineering, environmental assessment, andengineering support Manchester, New Hampshire

AmtrakProgram management and construction managementNationwide, United States

San Francisco Public Utility CommissionTesla Treatment FacilityJacobs leads the Construction Management teamat the Tesla FacilitySan Francisco, California

Countries worldwide are looking to infrastructure projects to help boost an economic upturn.

Significant international projects are already under way. In the United States, numerous

stimulus-funded projects have begun, and we anticipate more to come. In the Middle East,

Europe, and other markets, aviation is a bright spot. The U.S. Federal Aviation Administration and

regional-local airport authorities are targeting much of their available capital to capacity expansion

and investments in air traffic control infrastructure.

Clients in the transit and water/wastewater markets worldwide, where user fees or other revenue

sources enable agencies to be self-funded, continue to advance priority projects. We are also seeing

more commuter and freight rail studies. Meanwhile, we anticipate the U.K. markets to continue to

benefit from strong spending programs in water, energy, and rail, while driving efficiencies into the

system becomes the focus in highways and other areas.

Jacobs’ size, reach, and project achievements give our clients the tools they need to achieve their

goals. Transportation, aviation, water infrastructure, telecommunications – these areas are our core

strengths and ones we deliver with full life-cycle capabilities, including planning, environmental,

design, consulting, engineering, design-build, and construction and program management services.

For a major U.S. rail client, Jacobs brought expertise in program management, nationwide delivery

of services, broad technical expertise, and world-class private sector procurement experience to a

multi-project program funded by the American Recovery and Reinvestment Act. With a fast-start

team, an effective purchasing program focused on lower material costs, and a high level of quality

control, Jacobs expects to complete all 500 projects within 17 months.

Although worldwide economic issues continue to affect the pace of new projects, our global

presence in the infrastructure market is str ong, and we remain committed to our clients’

enduring success.

“I recognize the

contribution which

Jacobs has made to

the success of the

Kincardine project,

which has been

one of our key trans-

port infrastructure

improvements in

Scotland in recent

years. I recognize the

positive manner in

which the whole

project team worked

together to meet

numerous engineer-

ing challenges during

construction, leading

to the successful

completion of the

project.”Ainslie McLaughlin

Head of Major

Transport Infrastructure

Projects (MTRIPs)

Transport Scotland


Merck & Co., Inc.Varicella Bulk Facility ProgramEngineering, procurement, construction management,modular construction, and HVAC/utilities commissioningDurham, North Carolina

Serum Institute of India Vaccine Facility Conceptual engineering, detailed engineering, planning andproject management services, and procurement assistance Pune, India

“I really enjoy

working for a proven

“relationship-based

company” that offers

opportunities through

consistent growth.

Diverse learning

experiences and

opportunities that

broaden my

responsibilities have

allowed me to get

more engaged and

committed, and to

develop myself on a

professional and

personal level.”Julien

Department Manager

France

P H A R M A C E U T I C A L S &

Steady growth is returning to the pharmaceutical and biotechnology industry, particularly

as the United States moves toward expanding healthcare coverage. Our clients face a

challenging landscape worldwide, and they are demanding innovative solutions that bring

products to market with ever-increasing speed and reliability.

Complex products like biologics and oncology therapeutics dominate the biotechnology and

pharmaceutical pipeline. They are expected to drive the need for special facilities that can properly

manage high levels of biosafety for vaccines and potent compounds, particularly with demands for

H1N1 vaccine production. These advanced technology facilities, in both the research and

commercial manufacturing settings, benefit from our unique strengths. Jacobs has the technical

knowledge and geographic coverage to serve all our clients’ needs.

As many of our clients retool their business strategies, we deliver an umbrella of full life-cycle

support services worldwide, and bring added value through project controls, automation, and 3-D

design. For clients who are major vaccine producers, we are designing and building plants based

on conventional technologies, as well as those pioneering novel cell culture platforms.

Our clients require us to be flexible in addressing major greenfield capital projects as well as

upgrades and consolidations on established campuses. This is an area where we excel, as

evidenced by Jacobs helping our clients win three out of five categories of the 2010 Facility of the

Year Awards from the International Society of Pharmaceutical Engineers.

One of our clients won in the Project Execution category. We helped this client accomplish the

manufacturing portion of a facility from design kickoff to first production batches in 24 months.

This achievement was enabled by performing modular fabrication of the building on our own site

in the United States, then shipping and erecting it on the client’s site in Asia.

Moving into 2010, we remain committed to helping our clients stay competitive. Together we are

developing new and advanced products to meet the needs of people worldwide.

www.jacobs.com 11

B I O T E C H N O L O G Y

NovavaxPilot Plant and Commercial Launch Facility

Engineering (preliminary and detailed design) onlyRockville, Maryland

1 Billion Approximate doses of vaccine produced worldwide in 2009 by

facilities and projects in which Jacobs was involved.

B U I L D I N G S


General Services AdministrationSpottswood W. Robinson III and Robert R. Merhige, Jr., United States CourthouseConstruction Management ServicesRichmond, Virginia

123Number of Jacobs designed buildings that meet the United StatesGreen Building Council’s Leadership in Energy and EnvironmentalDesign (LEED) standards, including our own Santa Ana, Calif.,office which is LEED Gold certified.

8 8 Number of latest Building Research EstablishmentEnvironmental Assessment Method (BREEAM)

appraisals achieving a BREEAM Excellent rating.

OUTOF

www.jacobs.com 13

Société GénéraleGranite TowerProgram and project managementParis, France

Image courtesy of Laurent Blossier

City of Fort WorthFort Worth Convention Center Parking GarageFull-service architecture and engineering, and parkingfeasibility studyFort Worth, Texas

Centre Hospitalier UniversitaireNew Hospital d’Estaing (N.H.E.)Medical planning, engineering, procurement, andconstruction management Clermont-Ferrand, France

Continued business consolidation, international growth, integrated design and

construction, as well as advanced and changing design technologies, are factors we expect

to have a significant impact on our clients’ capital investment strategies in 2010. Our

clients worldwide are increasingly focused on efficient asset management and total cost of

ownership, with an emphasis on sustainable building design.

The global healthcare market held steady last year, and we see this business and the education

market continuing to improve in the latter half of 2010. We also anticipate ongoing investment in

national security, high-tech and mission critical facilities, and government buildings.

We have helped our public sector clients achieve project success, most notably in the U.S. Federal

civilian and Department of Defense (DoD) markets. Federal civilian stimulus-related work was

strong last year, and we expect to see a continued positive impact. Additionally, we continue to

support the DoD by following our clients in Europe, the Middle East, and Asia.

Using Building Information Modeling (BIM) enabled Integrated Project Delivery, we continue to

set the standard for increased quality and efficiency in facility design and construction, especially

for sustainable buildings. We drive lessons learned and best practices to develop knowledge-based

strategies that increase design and execution efficiency for our clients. Through this approach,

we deliver advanced concept designs including cost and schedule information, with greater

detail than typically expected. As a result, we have helped our clients achieve high levels of

stakeholder satisfaction, and in 2009 we demonstrated $153 million in capital cost savings on

our clients’ projects.

Jacobs works closely with our clients to understand their business objectives. We then apply our

depth and breadth of buildings expertise and experience to provide industry-leading strategies

and solutions to help clients achieve their business and project goals.

“I just managed the

preparation of a

complete scope and

estimate for a major

emergency response

program for our client.

Jacobs worked side

by side with all levels

of the client’s

organization with

complete trust. That

trust allowed us to

prepare the scope and

estimate, and meet

the requirements of

the client’s board in

roughly half the time it

usually takes.”Diane

Manager of

Construction

South Carolina

F O O D , B E V E R A G E , F O R E S T

Food, beverage, forest, and consumer product markets are thriving amid the economic

slowdown. The upturn in the food and beverage industry is attributed to several factors,

including the stabilization of energy costs. Growth in the industry is also largely influenced

by discerning, health-conscious consumers with increased awareness of nutrition and wellness.

Producers are responding with innovation and renovation of core products. In turn, this demand is

driving investments for new plants and retrofitting of existing ones.

In the forest and consumer products industry, uncertainty in the economy has accelerated

consolidation of some organizations and closure of underperforming assets. This market has

remained flat for a number of years, but in the last year has shown signs of growth. Traditional pulp

and paper companies are leveraging their brand strength, economies of scale, and operating

adjacencies into higher margin consumer products. Our clients are responding to consumer

demands in Asia, Europe, and North America, as well as new demands in developing countries.

The need to efficiently deliver the right consumer products at the right time remains critical to our

clients. From facility design to raw materials processing to converting, packaging, and distribution,

Jacobs’ vast depth of expertise helps our clients do just that.

For one consumer products client, Jacobs’ proposed innovative design changes under our

Value Plus program resulted in a client savings of $6.4 million in installed cost, an eight percent

reduction for the overall project.

As a leading provider to the entire food, beverage, forest, and consumer products supply chain,

our global presence and capabilities allow us to help our clients with targeted expansion and

investment. We look forward to not only enhancing our long-term alliances, but also developing

new relationships in the year to come.


Kimberly-ClarkConfidential projectEngineering and field servicesVarious locations

Kraft Foods BBQ Blaze Process Pump and Piping Additions Design and integration services, component selection, construction drawings Garland, Texas

“Thank you for the

tremendous help you

provided in preparing

for our recent OSHA

audit. The compliance

officer was very

impressed with the

organization of our

safety process.

Without your help, we

would have been

less prepared and less

organized, and may

well have invited

much closer scrutiny.

Jacobs was a great

asset.”Edward Bortz

Mill Manager

SP Newsprint Co.

Georgia-PacificNo. 6 Evaporator Set

Preliminary and detail engineering, estimating, procurement,reliability, and spares optimization

Brunswick, Georgia

www.jacobs.com 15

& C O N S U M E R P R O D U C T S

28The fiber recycling systems installed by Jacobs save trees and

reduce waste paper to landfills. Jacobs has completed 28 such projects inthe Forest & Consumer Products industry.

A U T O M O T I V E & I N D U S T R I A L


BMWAerodynamisches Versuchszentrum (AVZ) On-site launch support following completion of turnkey design/build contract Munich, Germany

75%Percentage of the world’s modern, major wind tunnels used for aerodynamicoptimization of automobiles that have been designed by Jacobs.

www.jacobs.com 17

The automotive industry faces more uncertainty in 2010 as the market shifts in response

to the global economic downturn and growing demand for smaller and more fuel-efficient

vehicles. Development of new and enhanced technologies that boost fuel efficiency and

reduce emissions is critical for the industry in 2010 and beyond.

In the industrial market, business conditions should begin to slowly improve in 2010, with

management teams keeping a watchful eye on costs. We expect many companies will initiate

projects in supply chain management, process improvement, and energy efficiency.

We are responding to our automotive clients in Europe, Asia, and North America, with services

ranging from conceptual design and feasibility/environmental studies to complete design-build

programs of engine test facilities, transmission test stands, emissions systems, aero-acoustic wind

tunnels, acoustic enclosures, and more.

Our long-term maintenance and operations services provide clients in the auto-racing industry

with consistent support to increase stability in their businesses. From design-build services to asset

management, we give our clients the technical advantages needed to develop top-of-the-line

test facilities.

When a core client needed to address interior-noise concerns in their small and mid-sized vehicle

platforms, our engineers and technicians developed wind noise profiles, targeted shake/rattle test

plans, climate-control noise measurement systems, and engine vibration profiles to address the

problem. As a result, our client’s customer satisfaction levels have increased by 10 percent, while

warranty costs and ‘things gone wrong’ have been reduced by 20 percent.

As always, we provide our automotive and industrial clients with value-added services. Jacobs’

unique capabilities and long industry history give our clients the best possible opportunities to grow

their business and enhance profitability.

“A recent project

helped me appreciate

what it meant to

work as a truly

integrated team. Our

relationship with the

client is one that

has weathered the

economic highs and

lows, and continues

to be strong as we

strive to achieve

common goals.”Nicky

Senior Project

Coordinator

Canada

BMWAerodynamisches Versuchszentrum (AVZ) Turnkey design/build and commissioning Munich, Germany


C H E M I C A L S & B A S I C

In North America, Europe, the Middle East, Asia, and India, chemical and basic resource

clients are focused on improving operating efficiency and flexibility of existing assets in 2010.

In the Middle East and Asia, markets are attractive for new investments due to low

feedstock cost and rapidly growing local demand. In the United States chemical industry

utilization is slowly recovering, supported by regionally low natural gas prices and a ramp-up

in consumer demand.

Our relationship-based business model allows us to provide significant support to our clients

in the sizable chemicals market. We support our clients who produce materials for industries

such as aerospace, automotive, biomedical, electronic, environmental, space, and military

applications. By focusing on sustaining capital spending that is prevalent even in economic down

cycles, we are able to guide our clients with investments and decisions that help them achieve

their project goals.

We also see an emerging interest in the application of alternative feedstocks, carbon capture, and

the overall development of renewable energy products. Due to our involvement in early studies in

this segment of the market, we are in an excellent position to help owners capitalize on return-

on-investment opportunities by streamlining work processes and optimizing existing plant

layouts for future expansions.

In one example of streamlining production processes, by simplifying a separation step at one

client’s facility, we eliminated half the equipment and instrumentation, resulting in improved

flow and control, as well as a savings of $8 million in capital, operations, and maintenance

expenses.

Looking toward the future, we continue to emphasize the long-term partnering and small cap

alliance models that define our relationships with most of our chemical industry clients.

DSM Industrial Complex “Chemelot”Full engineering, procurement, and constructionmanagement Geleen, The Netherlands

Chemplast Sanmar at Cuddalore Poly Vinyl Chloride PlantDetailed engineering, procurement, and constructionmanagement Cuddalore in the State of Tamil Nadu, India

OCP Group Jacobs – OCP Joint VentureProgram, project management, and engineering services Morocco

“In India, we execute

local as well as

international projects

directly or through

other Jacobs offices

worldwide. As a part

of the Project Controls

group, providing

services as per

changing customer

requirements

strengthens Jacobs’

relationship-based

model. Our collabor-

ative efforts help us to

serve clients better to

their satisfaction.”Shubhangi

Chief Engineer-Project

Controls

India

Dow ChemicalPolyol Expansion

Detailed design and procurementTerneuzen, The Netherlands

www.jacobs.com 19

R E S O U R C E S

$8MSavings in capital, operations, and maintenance expenses for a client due

to Jacobs simplifying a separation step at the client’s facility.


E N V I R O N M E N T A L

Concern over the impacts of emissions and climate change is fueling an active market for

environmental programs around the world. Legislation under way in Europe and North

America will require manufacturers to invest in improved emissions control technologies.

A broader definition of wetlands has led to an increased number of development permits in the

United States. In the United Kingdom, the first-ever legally binding carbon budgets are driving

more environmental projects.

Jacobs guides our clients with solid regulatory know-how and technical expertise. On any given

day, we assist private and public clients worldwide with environmental investigation, restoration,

remediation, engineering, construction, and site operations and maintenance services.

Many of our private sector clients are on the forefront of efforts to reduce greenhouse gas

emissions and improve energy efficiency in oil and gas, power, and refining facilities in Europe,

North America, the Middle East, Asia, and India. We support them with a depth of scientific and

engineering expertise. In addition to our longstanding relationship with the U.S. Department of

Energy (DOE) and Department of Defense (DoD), we also design, build, install, operate, and

maintain various types of soil and groundwater cleanup systems at multiple project locations for

the Nuclear Decommissioning Authority (NDA) in the United Kingdom.

Our portfolio includes hazardous and nuclear waste management projects across the globe. One

key environmental client received a sudden funding increase of $30 million as part of the U.S.

government stimulus program. By applying Jacobs’ proven project management techniques, we

were able to help our client rapidly modify plans for the 2009 season to efficiently incorporate this

funding. The environmental cleanup work was flawlessly performed on an accelerated schedule to

ensure maximum return on investment.

At Jacobs we harness our long history and deep experience to provide clients with comprehensive

solutions that meet all their project needs in the evolving environmental market.

Tennessee Valley AuthorityKingston Dredge Cell Incident Recovery ManagementProject management and construction managementKingston, Tennessee

South East Water Trosley Water Treatment Works and Borough GreenUpgrade ProjectProject management, FEED design, tender documents,and adjudicationUnited Kingdom

SYCTOMIsseane-Household Waste Treatment CenterOwner engineering assistance, and technicalconsulting services Paris, France

“This was quite a team

we had going at it for

the last 13 years – who

says 13 isn’t a lucky

number? Thank you

just doesn’t say it all.

You can add this now

to your résumé –

we have achieved

RIP (Remedy in Place)

for the Massachusetts

Military Reservation

in FY2009. I couldn’t

have done it without

you.”Mike Minior

Project Manager

Air Force Center

for Engineering and

the Environment

www.jacobs.com 21

Alaska District, U.S. Army Corps of EngineersKogru Landfill Interim Removal Action

Removal and disposal of contaminated former military landfillKogru, Alaska

P R O G R A M S

30,000 TonsThe amount of sulfur removed from the environment each day by Jacobs’ proprietary

Superclaus® and Euroclaus® technologies. More than 200 Superclaus® and Euroclaus®

units are in operation throughout the world.


O I L & G A S

Chevron CorporationSan Joaquin Valley Upstream Oil and Gas Operations Ongoing maintenance and sustaining capital constructionChevron's Cahn Gas Plant, Lost Hills, California

14Number of Jacobs currently recognized OSHA Voluntary Protection Plan (VPP)sites as of September 2009.

www.jacobs.com 23

Though still off the pace of 2008, the outlook for this sector is positive as our clients

capitalize on the gradual stabilization of the oil and gas market. Many of our upstream

projects include heavy oil processing, oil recovery through steam injection, gas treating,

gas gathering, and gas storage – all project types where we are seeing renewed investment.

Onshore upstream work is stable in Europe, with new opportunities in underground gas storage;

we anticipate modest growth. In India, the Middle East, and North America, our upstream alliance

teams are working together with clients on reducing costs – taking full advantage of reduced

commodity prices. In Canada, conditions are positive for client investment in oil sands.

We continue to support our clients in offshore production, where we execute topside facility

engineering and design in the Gulf of Mexico and North Africa. We continue to increase our

presence in this market by executing work from our Gulf Coast offices.

Jacobs’ partnership model has reduced engineering costs for multiple clients by approximately

30 percent where the client is replicating design. This cost reduction is brought about by: creating

an environment committed to continuous improvement through application of our JSTEPSSM

work process; replicating previously proven designs (‘design once: copy many’); utilizing our India

design center, employing joint North American - Indian teams experienced in similar project

types; using benchmarks to drive engineering, procurement, and construction efficiencies; and

employing senior management steering committees to proactively address issues.

Moving forward, growth in world oil demand and the international nature of this industry support

investment in exploration and production infrastructure. With thousands of hydrocarbon

professionals across the globe, we have the technical expertise required to help our clients exploit

oil and gas resources anywhere in the world.

Shell Exploration & Production CompanyOzona Subsea TiebackProject management, procurement, engineering, andexpediting supportNew Orleans, Louisiana

“Working with people

of diverse cultures, in

different countries

and with diverse work

systems, Jacobs has

one of the best tools

available to steer all

of us in the right di-

rection: BeyondZeroTM.

Once BeyondZeroTM is

embraced by every-

one and permeates

throughout the entire

team, client

included, there is a

fervor of care and

concern to help

everyone along and

issues get resolved

quicker than ever.”TG

Architect

Singapore

Suncor Energy Inc.Firebag Stage 3 Central Processing FacilitiesEngineering and procurement Calgary, Alberta, Canada


A E R O S P A C E & D E F E N S E

The aerospace and defense market faces several challenges, including possible program

realignment within NASA and changing acquisition philosophies by the U.S. Department

of Defense. We are also starting to see increasing constraints on elements of Defense

spending worldwide. Despite these emerging challenges, this remains a large market with

significant opportunity to serve our clients’ evolving needs.

As our clients’ requirements change, our relationship-based model and breadth of services ensure

we are highly responsive to all client needs. Our capabilities include test engineering, facility

design and build, enterprise information systems, technical facilities O&M, program acquisition

engineering, and engineering and scientific services.

Our 65 years of industry experience help us provide government, industrial, and private clients

worldwide with the tools they need to accomplish their mission objectives. In an era of

constrained budgets, our highly competitive cost posture helps our clients maximize levels of

support on our contracts as well.

On one of our contracts, we have realized a cost savings of approximately $7 million for our client

over the life of the contract – as the direct result of condition-based maintenance programs, as well

as prevention of injuries and time loss.

We look forward to helping our global aerospace and defense clients turn their challenges

into opportunities. Working together we deliver maximum value to our clients’ stakeholders

and customers.

U.S. Special Operations Command Improved Special Operations Forces (SOF) Fast Rope Kit Acquisition, Logistics, Management, and BusinessOperations Support (ALMBOS)Tampa, Florida

United States Air ForceArea 1-42 Technology Assessment Motor (TAM)Altitude Test Research Operations Support Services (ROSS)Edwards Air Force Base, California

NASA Stennis Space CenterSpace Shuttle Main Engine TestingPropulsion Test Operations and Test Support ServicesStennis Space Center, Mississippi, and Marshall SpaceFlight Center, Alabama

“Jacobs Technology Inc.

has allowed me the

opportunity to use my

career experience ac-

quired in the U.S. Navy.

My job gives me the

satisfaction of knowing

that the work accom-

plished can sometimes

lead to saving lives or

increasing the capabili-

ties of our Special

Operations Forces.

Additionally, the com-

pany has allowed me

the flexibility to pursue

new approaches to

solve problems and to

exercise my skills

without constraints.”Craig

Science Advisor/

Directorate of Science

and Technology Support

Florida

www.jacobs.com 25

NASA Marshall Space Flight CenterAres I Interstage Demonstrator

Engineering, Science, and Technical Services (ESTS)Huntsville, Alabama

Jacobs’ Facility Operating Services Contract (FOSC) groupreceived the Federal Energy and Water Management Award from the

U.S. Department of Energy in 2009.

ENERGYENERGYU.S. DEPARTMENT OF


P O W E R & U T I L I T I E S

Oregon State UniversityEnergy CenterDesign servicesCorvallis, Oregon

$18MAmount that is expected to be saved in fuel costs at the University ofTexas at Austin over the next three years as a result of energy improvements –including a new gas turbine and completion of campus-wide energyconservation efforts implemented by Jacobs.

www.jacobs.com 27

Industries and utilities worldwide continue to feel pressure to reduce energy consumption,

provide decentralized energy supplies, and install low-carbon and renewable energy

technologies. We see 2010’s outlook as promising, particularly in Europe and the Middle East.

Our European clients are preparing for changing requirements of a new energy policy, which

imposes a major shift in the power-generation infrastructure and may spawn more renewables

projects. New projects are also anticipated in the power and gas, underground storage, nuclear

siting, and permitting arenas. The Canadian power sector offers opportunities for growth with

investments in new nuclear power plants and existing plant maintenance.

The American Clean Energy and Security Act, passed by the U.S. House of Representatives in June

2009, includes provisions for new renewable requirements for utilities, studies, and incentives

regarding new carbon capture and sequestration technologies, and energy-efficient incentives for

homes and buildings.

Our worldwide relationships and knowledge of the power and utilities market combine in a

powerful way to help our clients by offering support in all of our major geographies.

Recently, we have helped a major power client launch the development of the first clean coal

project in the United Kingdom using pre-combustion carbon capture technology, within a 900-

megawatt integrated gasification combined cycle (IGCC) power station.

We are ready to assist with the changing utility landscape by continuing to support and advise our

clients in an ever-expanding leadership role.

British Energy – part of EDF EnergyPrime ContractAlliance partner, asset improvement works provider United Kingdom

Image courtesy of British Energy Group plc

Florida Power and Light FPL KV138 Electrical Transmission LineEngineering, procurement, permitting, and constructionmanagementMiami, Florida

University of Oklahoma-NormanUtility Plant #4Architectural design, engineering, and construction administrationNorman, Oklahoma

“I have been truly

impressed by your

dedication and

commitment to the

project. Consider

yourself a part of all

fab projects moving

forward in SunPower

– you are doing

fantastic.”Robert Vinje

Managing Sr. DirectorSunPower


M I S S I O N C R I T I C A L

Amission critical facility must be able to support an organization's mission and operate

reliably seven days a week, 24 hours a day, under any circumstances. Both our public and

private sector clients are focused on incorporating new strategies and technologies,

including sustainable technology, to achieve full mission critical standards while still lowering

initial and life-cycle costs. Another area of focus for many of our clients is the reduction of overall

spending by increasing their operational efficiency and overall energy management effectiveness.

Jacobs meets the demanding needs of mission critical facilities by providing clients with asset

management planning with emphasis on risk assessment and optimum deployment strategies.

We support all aspects of technology, infrastructure, communications, and energy supply, with

full consideration for operational continuity and disaster recovery strategies.

Our experience gives our clients a solid base for a multitude of projects: data centers, command

and control centers, telecommunications systems, and emergency response facilities. We

anticipate our clients’ continuing investment in these types of facilities and systems in the future.

Jacobs recently enabled a confidential federal client to meet a critical deadline by designing a

400,000-square-foot mission critical data center in eight months. Our successful design, which

included redundant mechanical and electrical systems, multiple data and telecommunications

networks, under-floor air distribution, and scalable modular information technology infra-

structure, then became the prototype for all data center design for this agency.

Jacobs offers a long and broad history of developing solutions for our clients’ mission critical needs

in multiple sectors, and as a result we offer industry-leading knowledge of current state-of-the-art

mission critical design and construction.

British Broadcasting CorporationBritish Broadcasting Corporation Centralized Coding and Multiplexing ProjectLead designer and engineering services United Kingdom

ITERITER Fusion Energy ProjectPreliminary architectural and engineering servicesCadarache Site, France

Image Copyright ITER Organization

“For Phase Three of my

project, the client asked

us to accelerate

the schedule to allow

required outside

approval within both the

production building

(Phase Two) and the

packaging building so to

have a full operational

site in one shot. The

Jacobs site team

worked toward this goal

and succeeded in com-

pleting the tasks two

months ahead of the

original plan, much to

the client’s satisfaction.

Thanks very much to

my team for the hard

work done.”Alberto

Construction Manager

Italy

www.jacobs.com 29

Lawrence Livermore National SecurityFacilities Integrated Management and Operations (FIMO),

Craft Labor Construction, construction/project management, O&Msupport and program development, and engineering

Livermore, California

F A C I L I T I E S

$1.5BData center projects (over 50MW) delivered by our

Mission Critical group over the last five years.


B O A R D O F D I R E C T O R S

Robert C. Davidson, Jr.Director (Retired. Former Chairmanand Chief Executive Officer of SurfaceProtection Industries, Inc.)

Edward V. FritzkyDirector (Retired. Former Director of Amgen;Former President & Chairman of the Boardof Immunex Corporation)

Robert B. GwynDirector (Retired. Former CEO and Chairman of theBoard of Agricultural Minerals and Chemicals, Inc.)

John P. JumperDirector (Retired. Former Chief of Staff,U.S. Air Force)

Linda Fayne LevinsonDirector (Former Partner of GRP Partners)

Benjamin F. MontoyaDirector (Retired. Former Commander of NavalFacilities Engineering Command)

All photos shown left to right

Joseph R. BronsonDirector (Chief Executive Officer of Silicon Valley Technology Corporation)

John F. CoyneDirector (President and Chief Executive Officerof Western Digital Corporation)

www.jacobs.com 31


Thomas M.T. NilesDirector (Vice Chairman of United States Councilfor International Business; Former Ambassadorto Canada)

Peter J. RobertsonDirector (Former Vice Chairman of Chevron Corp.)

Linda K. JacobsDirector Emerita

Robert M. ClementGroup Vice President, North America Infrastructure

Michael CoyleGroup Vice President, Eastern Region

James E. DixonGroup Vice President, Global MaintenanceServices

Arlan C. EmmertGroup Vice President, Middle East

Thomas R. HammondExecutive Vice President, Operations

Michael J. HigginsGroup Vice President, U.K. Infrastructure


William J. BirkhoferSenior Vice President, Public Sector Sales

Cora L. CarmodySenior Vice President, Information Technology

L E A D E R S H I P



Andrew F. KremerSenior Vice President, Global Sales

George A. Kunberger, Jr.Executive Vice President, Operations

Gregory J. LandryExecutive Vice President, Operations

William C. Markley, IIISenior Vice President, General Counsel

Robert MathaGroup Vice President, Southern Europe

H. Thomas McDuffie, Jr.Group Vice President, Global Buildings NA

John McLachlanSenior Vice President, Strategy & Acquisitions

Kevin J. McMahonGroup Vice President, North America Infrastructure

www.jacobs.com 33


L E A D E R S H I P

Robert G. NorfleetSenior Vice President, Quality & Safety

Bob PragadaGroup Vice President, Northern Region

John W. Prosser, Jr.Executive Vice President, Finance,Administration & Treasurer

Rogers F. StarrPresident, Jacobs Technology, Inc.


Earl J. Mitchell, Jr.Group Vice President, Western Region

Christopher E. NagelGroup Vice President, Asia-Pacific

Philip J. StassiGroup Vice President, Global ConstructionServices

James T. StewartGroup Vice President, Southern Region

www.jacobs.com 35


Patricia H. SummersSenior Vice President, Global Human Resources

Allyn B. TaylorGroup Vice President, U.K. & Ireland

Nazim G. ThawerbhoySenior Vice President & Controller

Mark S. WilliamsGroup Vice President, Northern Europe


FORWARD-LOOKING STATEMENTS AND OTHER SAFE HARBOR APPLICATIONS

Statements included in this 2009 Summary Annual Report that are not based on

historical facts are “forward-looking statements,” as that term is defined in the private

Securities Litigation Reform Act of 1995. Although such statements are based on

management’s current estimates and expectations, and currently available competitive,

financial and economic data, forward-looking statements are inherently uncertain and

involve risks and uncertainties that could cause the results of the Company to differ

materially from what is contained in these forward-looking statements. You should not

place undue reliance on these forward-looking statements.

When used in this 2009 Summary Annual Report, words such as “anticipate,” “estimate,”

“expect,” “seek,” “intend,” “plan,” “believe,” and similar words are intended in part to

identify forward-looking statements. Some of the factors that could cause or contribute

to such differences are listed and discussed in Item 1A—Risk Factors of the Company’s

most recent Annual Report on Form 10-K and include the following: exposure to

financial losses and civil and criminal liabilities due to failure to maintain safe work sites

or to comply with various government regulations or contracts; negative conditions in

the credit markets; fluctuations in commodity prices; the cyclical nature of the markets

in which the Company and its clients operate; loss of one or a few customers or projects;

adjustment, cancellation or suspension of contracts in the Company’s backlog; the

outcome of pending and future claims and litigation; employee, agent or partner

misconduct; the risks and uncertainties relating to acquiring other businesses and

operating internationally; actual results differing from estimates and assumptions in the

Company’s financial statements; and the Company’s ability to hire and retain qualified

personnel. The list set forth in Item 1A—Risk Factors of the Company’s most recent

Annual Report on Form 10-K and the list set forth above—are not all-inclusive, and the

Company undertakes no obligation to release publicly any revisions or updates to any

forward-looking statements that are contained in this 2009 Summary Annual Report.

Readers of this 2009 Summary Annual Report are encouraged to read carefully the

Company’s most recent Annual Report on Form 10-K (including discussions contained

in Items 1—Business, 1A—Risk Factors, 3—Legal Proceedings, and 7—Management’s

Discussion and Analysis of Financial Condition and Results of Operations contained

therein) and other documents the Company files from time to time with the United

States Securities and Exchange Commission for a further description of some of the

factors that could cause actual results to differ from the forward-looking statements

contained herein.

A N A LY S I S

www.jacobs.com 37

REPORT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM,ON CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Board of Directors and Stockholders — Jacobs Engineering Group Inc.

We have audited, in accordance with the standards of the Public Company Accounting

Oversight Board (United States), the consolidated balance sheets of Jacobs Engineering

Group Inc. and subsidiaries as of October 2, 2009 and September 26, 2008, and the

related consolidated statements of earnings, changes in stockholders’ equity, and cash

flows for each of the three fiscal years in the period ended October 2, 2009 (not

presented separately herein); and in our report dated November 20, 2009, we expressed

an unqualified opinion on those consolidated financial statements. In our opinion, the

information set forth in the accompanying condensed consolidated financial statements

is fairly stated in all material respects in relation to the consolidated financial statements

from which it has been derived. We have also audited, in accordance with the standards

of the Public Company Accounting Oversight Board (United States), Jacobs Engineering

Group Inc.’s internal control over financial reporting as of October 2, 2009, based on

criteria established in Internal Control—Integrated Framework issued by the

Committee of Sponsoring Organizations of the Treadway Commission and our report

dated November 20, 2009 expressed an unqualified opinion thereon.

Los Angeles, California

November 20, 2009

REPORT BY MANAGEMENT

The management of Jacobs Engineering Group Inc. has prepared the accompanying

consolidated financial statements and other financial information included in this

summary annual report and is responsible for their integrity and objectivity.

Management maintains a system of internal controls over financial reporting which is

designed to provide reasonable assurance that, among other things, transactions are

properly authorized, executed, and recorded, and that the Company’s records and

reports are reliable. Management’s Report on Internal Control over Financial Reporting

appears under Item 9A in the Company’s 2009 Annual Report on Form 10-K filed with

the Securities and Exchange Commission.


2009 2008 2007 2006

Results of Operations:

Revenues $ 11,467,376 $ 11,252,159 $ 8,473,970 $ 7,421,270

Net earnings 399,854 420,742 287,130 196,883

Financial Position:

Current ratio 2.17 to 1 1.74 to 1 1.78 to 1 1.75 to 1

Working capital $ 1,522,548 $ 1,173,237 $ 1,001,644 $ 776,766

Current assets 2,818,449 2,750,234 2,278,078 1,817,961

Total assets 4,428,614 4,278,238 3,389,421 2,853,884

Long-term debt 737 55,675 40,450 77,673

Stockholders’ equity 2,625,913 2,245,147 1,843,662 1,423,214

Return on average equity 16.42% 20.58% 17.58% 15.21%

Backlog:

Technical professional services $ 8,209,300 $ 8,085,200 $ 6,188,500 $ 5,153,400

Total 15,219,400 16,696,600 13,585,800 9,777,700

Per Share Information:

Basic EPS $ 3.26 $ 3.47 $ 2.42 $ 1.69

Diluted EPS 3.21 3.38 2.35 1.64

Stockholders’ equity 21.14 18.30 15.34 12.06

Average Number of Shares of Common

Stock and Common Stock

Equivalents Outstanding (Diluted) 124,534 124,357 122,226 120,373

Common Shares Outstanding

At Year End 124,230 122,701 120,222 117,992

F I N A N C I A L D ATADollars in thousands, except per share information

Net earnings for fiscal 2000 included an after-tax charge of $23.7 million, or $0.22 per diluted share, relating to the settlement of certain litigation.

The Company’s fiscal year ends on the Friday closest to September 30 (determined on the basis of the number of workdays) and, accordingly, an additional week

of activity is added every five to six years, such as in fiscal 2009. In the past, and solely for ease of reference, we titled our financial statements as being “at” or

“for the fiscal year ended” September 30. Henceforth, we will title our financial statements using the specific date on which our fiscal years end. There was no

material effect on our consolidated financial statements from making this change in presentation.

www.jacobs.com 39

2005 2004 2003 2002 2001 2000

$ 5,635,001 $ 4,594,235 $ 4,615,601 $ 4,555,661 $ 3,956,993 $ 3,418,942

131,608 115,574 112,645 97,475 75,876 42,355

1.70 to 1 1.58 to 1 1.59 to 1 1.32 to 1 1.35 to 1 1.24 to 1

$ 552,336 $ 397,599 $ 358,683 $ 234,486 $ 245,500 $ 167,160

1,337,431 1,083,513 970,097 974,903 946,159 851,023

2,378,859 2,093,819 1,688,096 1,688,093 1,568,111 1,392,929

89,632 78,758 17,806 85,732 164,308 146,820

1,165,780 1,027,802 859,669 703,722 602,872 504,096

12.00% 12.25% 14.41% 14.92% 13.71% 8.84%

$ 4,329,000 $ 3,989,000 $ 3,383,200 $ 3,045,600 $ 2,490,100 $ 2,217,200

8,643,000 7,452,500 7,041,000 6,674,200 5,912,500 5,430,100

$ 1.15 $ 1.03 $ 1.02 $ 0.90 $ 0.71 $ 0.40

1.12 1.01 1.00 0.88 0.70 0.40

10.03 9.06 7.70 6.42 5.61 4.78

117,379 114,867 112,784 110,792 108,991 105,894

116,260 113,397 111,672 109,531 107,489 105,545


08 0900 01 02 03 04 05 06 07

$ 3,418,942

$ 3,956,993

$ 4,555,661

$ 4,615,601

$ 4,594,235

$ 5,635,001

$ 7,421,270

$ 8,473,970

$ 11,252,159

$ 11,467,376

0800 01 02 03 04 05 06 07 09

$ 5,430,100

$ 5,912,500

$ 7,041,000

$ 7,452,500$ 6,674,200

$ 16,696,600

$ 15,219,400$ 13,585,800

$ 9,777,700

$ 8,643,000

0800 01 02 03 04 05 06 07 09

$ 0.40

$ 1.64

$ 2.35

$ 3.38

$ 3.21

$ 0.70

$ 1.00 $ 1.12 $ 0.88 $ 1.01

0800 01 02 03 04 05 06 07

8.84%

13.71%

14.92%14.41%

12.25%12.00%

15.21%

17.58%

20.58%

16.42%

09

REVENUESin thousands

TOTAL BACKLOGin thousands

EARNINGS PER SHARE (DILUTED) RETURN ON AVERAGE EQUITY

F I N A N C I A L D ATA

www.jacobs.com 41

2009 2008 October 2 September 26

Assets

Current Assets:

Cash and cash equivalents $ 1,033,619 $ 604,420

Receivables 1,618,561 1,957,773

Deferred income taxes 117,066 142,553

Prepaid expenses and other current assets 49,203 45,488

Total current assets 2,818,449 2,750,234

Property, Equipment and Improvements, Net 240,350 256,140

Other Noncurrent Assets:

Goodwill 929,842 924,060

Miscellaneous 439,973 347,804

Total other noncurrent assets 1,369,815 1,271,864

$ 4,428,614 $ 4,278,238

Liabilities and Stockholders’ Equity

Current Liabilities:

Notes payable $ 17,495 $ 966

Accounts payable 340,651 467,888

Accrued liabilities 679,109 825,587

Billings in excess of costs 252,149 234,203

Income taxes payable 6,497 48,353

Total current liabilities 1,295,901 1,576,997

Long-term Debt 737 55,675

Other Deferred Liabilities 500,501 394,241

Noncontrolling Interests 5,562 6,178

Commitments and Contingencies

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—124,229,933

shares and 122,701,049 shares, respectively 124,230 122,701

Additional paid-in capital 703,860 631,043

Retained earnings 2,009,338 1,620,673

Accumulated other comprehensive loss (211,515) (129,270)

Total stockholders’ equity 2,625,913 2,245,147

$ 4,428,614 $ 4,278,238

CONSOLIDATED BALANCE SHEETS

In thousands, except share information


2009 2008 2007 October 2 September 26 September 28

Revenues $ 11,467,376 $ 11,252,159 $ 8,473,970

Costs and Expenses:

Direct costs of contracts (9,906,493) (9,517,673) (7,262,621)

Selling, general and administrative expenses (940,310) (1,091,427) (769,393)

Operating Profit 620,573 643,059 441,956

Other Income (Expense):

Interest income 13,145 15,447 19,764

Interest expense (2,916) (4,414) (8,019)

Miscellaneous income (expense), net (6,029) 3,319 (5,059)

Total other income (expense), net 4,200 14,352 6,686

Earnings Before Taxes 624,773 657,411 448,642

Income Tax Expense (224,919) (236,669) (161,512)

Net Earnings $ 399,854 $ 420,742 $ 287,130

Net Earnings Per Share:

Basic $ 3.26 $ 3.47 $ 2.42

Diluted $ 3.21 $ 3.38 $ 2.35

CONSOLIDATED STATEMENTS OF EARNINGS

In thousands, except share information

F I N A N C I A L D ATA

2009 2008 2007 October 2 September 26 September 28

Cash Flows from Operating Activities:

Net earnings $ 399,854 $ 420,742 $ 287,130

Depreciation and amortization 86,342 73,126 55,670

Stock based compensation 24,085 21,289 17,982

Other, net (primarily changes in the working

capital and deferred income tax accounts) 23,186 (201,746) 79

Net cash provided by operating activities 533,467 313,411 360,861

Cash Flows from Investing Activities:

Additions to property and equipment, net of disposals (53,258) (114,403) (63,130)

Acquisitions of businesses, net of cash acquired (23,329) (264,067) (88,721)

Other, net (18,327) (31,440) (13,945)

Net cash used for investing activities (94,914) (409,910) (165,796)

Cash Flows from Financing Activities:

Net change in long-term borrowings (45,963) 18,235 (42,386)

Net change in short-term borrowings 15,933 (6,821) (13,945)

Proceeds from issuance of common stock 43,361 46,362 34,691

Other, net (52,334) 41,013 1,345

Net cash provided by (used for) financing activities (39,003) 98,789 (20,295)

Effect of Exchange Rate Changes 29,649 (11,222) 4,515

Increase (Decrease) in Cash and Cash Equivalents 429,199 (8,932) 179,285

Cash and Cash Equivalents at Beginning of Period 604,420 613,352 434,067

Cash and Cash Equivalents at End of Period $ 1,033,619 $ 604,420 $ 613,352

Other Cash Flow Information:

Interest paid $ 1,700 $ 3,500 $ 5,400

Income taxes paid $ 255,500 $ 177,700 $ 171,600

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

In thousands

www.jacobs.com 43

Registrar and Transfer Agent

Wells Fargo Shareowner Services

South St. Paul, Minnesota

Shareholder Services

Correspondence about share ownership,

transfer requirements, changes of address, lost

stock certificates, and account status

may be directed to:

Wells Fargo Shareowner Services

161 North Concord Exchange Street

South St. Paul, Minnesota 55075-1139

800.468.9716

http://www.wellsfargo.com/shareownerservices

Independent Registered Public Accounting Firm

Ernst & Young, LLP

Los Angeles, California

Stockholder Contact

A copy of our Annual Report on Form 10-K,

as filed with the Securities and Exchange

Commission, will be furnished without charge to

any stockholder upon written request to:

John W. Prosser, Jr.

Executive Vice President,

Finance and Administration and Treasurer

Jacobs Engineering Group Inc.

P.O. Box 7084

Pasadena, California 91109-7084

626.578.3500

ON THE COVER

Front, left to right

The Borough of Basingstoke and Deane Council

Churchill Way Footbridge

Design and construction

Basingstoke, England

U.S. Air Force Research Laboratory

Solid Rocket Booster (SRB) Testing Program

Research and Support

Edwards Air Force Base, California

Georgia-Pacific

No. 6 Evaporator Set

Preliminary and detail engineering, estimating,

procurement, reliability, and spares optimization

Brunswick, Georgia

Back, left to right

Total Petrochemicals

Polypropylene Train Expansion

La Porte, Texas

Greater Manchester Passenger

Transport Executive

Greater Manchester Passenger Transport

Consortium-design, construction supervision

Manchester, England

NASA

NASA Space Shuttle Program

Various U.S. NASA locations

Photo credit: NASA/Troy Cryder

© Copyright 2010

Jacobs Engineering Group Inc. All rights reserved.

19166 CP 01/10

As part of Jacobs’ sustainability initiatives, thisdocument is printed on paper that is FSC Certified,Mixed Sources; contains 30% post consumerrecovered fiber; and was produced using electricitygenerated from renewable resources, such as wind,hydro and biogas. All inks are soy-based.

1111 South Arroyo Parkway 91105Post Office Box 7084Pasadena, California 91109-7084 USA

626.578.3500 | www.jacobs.com

2009 Jacobs Summary Annual Reports24.q4cdn.com/280511176/files/doc_financials...Australia, Africa,...

Documents

Transcript of 2009 Jacobs Summary Annual Reports24.q4cdn.com/280511176/files/doc_financials...Australia, Africa,...