Financial Highlights 1
Shareholders Message 2
Inside The Relationship 4
Features 6
Market Profiles 22
Chemicals 24
Oil & Gas 26
Refining & Petrochemical 28
Aerospace & Defense 30
Automotive & Industrial 32
Transportation 34
Environmental, Water & Wastewater 36
Buildings 38
Mission-Critical & High-Tech Facilities 40
Power & Utilities 42
Mining & Minerals 44
Food, Beverage, Forest 46& Consumer Products
Pharmaceuticals & Biotechnology 48
Success Through The Relationship 50
Board of Directors 52
Leadership 54
Analysis 60
Financial Data 62
JACOBS®
2011 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 engineering, architecture, 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 170 offices in
more than 25 countries, with operations in
North America, South America, Europe, the Middle East,
India, Australia, Africa, and Asia. Jacobs was founded in
1947 and our headquarters are in Pasadena, California.
www.jacobs.com
Louisville Water Company has a 150-yearhistory in Louisville, Kentucky, USA. Read about our Riverbank Filtration
Project on page 20.
Photo courtesy Louisville Water Company
www.jacobs.com 1
Dollars in thousands, except per share information
F I N A N C I A L H I G H L I G H T S
2011 2010 2009September 30 October 1 October 2
Revenues $ 10,381,664 $ 9,915,517 $ 11,467,376
Net earnings attributable to Jacobs 331,029 245,974 399,854
Per share information:
Basic EPS $ 2.63 $ 1.98 $ 3.26
Diluted EPS 2.60 1.96 3.21
Stockholders’ equity 25.93 22.71 21.14
Closing year-end stock price 32.29 39.01 43.51
Total assets $ 6,049,428 $ 4,683,917 $ 4,428,614
Total Jacobs stockholders’ equity 3,312,988 2,859,048 2,625,913
Return on average equity 10.73% 8.97% 16.42%
Stockholders of record 1,394 1,467 1,461
Backlog:
Technical professional services $ 9,100,100 $ 7,588,900 $ 8,209,300
Total 14,289,800 13,202,000 15,219,400
Permanent staff 45,700 38,500 38,900
$11,467,376
09 10
$9,915,517
11
$10,381,664
$399,854
09 10
$245,974
11
$331,029
09
$13,202,000
10
$15,219,400
$14,289,800
11
REVENUESin thousands
NET EARNINGSin thousands
TOTAL BACKLOGin thousands
Net earnings for fiscal 2010 include a non-recurring after-tax charge of $60.3 million, or $0.48 per diluted share.
2 2011 Summary Annual Report
Before discussing our year in review and key performance indicators, we’d like to first
touch on an issue that’s of critical importance to Jacobs: safety and BeyondZero®. As
everyone who follows our Company knows, safety — that of our employees, their
families, our suppliers, our clients, and all those who belong to the communities which
we serve — is top priority for us. BeyondZero® is integral to our culture and meant to inspire our
employees, clients, and industry to understand that all accidents are preventable and that we have
the power to eliminate them from the workplace.
Our safety statistics improved in 2011 versus 2010, although not nearly enough. We continue to
focus on eliminating accidents and making BeyondZero® a reality.
Fiscal 2011 EPS improved to $2.60. We ended 2011 with $14.3 billion in backlog versus $13.2 billion
in 2010. Our balance sheet remains strong with working capital in excess of $1 billion and over
$900 million in cash.
The global economy remained uncertain and difficult in 2011. Notwithstanding, our private sector
markets gained strength as the year progressed and at year-end we have an abundance of
prospects. We were also able to grow our public sector (government) business in 2011 in spite of
budget turmoil at the government level. We had many important wins during the year in the public
sector and we expect that business to continue to grow.
Our ability to consistently perform is based on our fundamental strategies:
Drive repurchase loyalty through our relationship-based business model;
Maximize opportunities by remaining committed to a diversified market strategy;
Support our clients as they enter new geographies then penetrate those markets to develop a
strong local presence as part of our multi-domestic approach;
Leverage our cash position through strategic acquisitions; and
Continue to drive down cost.
Regardless of economic conditions around the world, our business model has proven to be the
right strategy for attaining the growth you and Jacobs expect — 15 percent average annual growth.
In 2011, our relationship-based business model delivered more than 91 percent client satisfaction
scores and more than 92 percent repeat business.
We believe the innovative solutions, high level of quality, and tangible, value-based results we
deliver to our clients every day drive our customers’ loyalty. In 2011, we produced more than
$3.7 billion in client savings through our JacobsValue+SM program, surpassing our record numbers
from last year. We continue to raise the bar for the client experience, and we expect no less in
the year ahead.
FY11 HIGHLIGHTS
Revenues of $10.4 billion
Net earnings of $331 million
Backlog of $14.3 billion
Cash of more than$900 million
2011 diluted EPS of $2.60
$3.7 billion in savings toour clients through ourJacobsValue+SM program
To Our Shareholders, Clients & Employees:
S H A R E H O L D E R S M E S S A G E
We further strengthened our offerings by leveraging our strong balance sheet to enhance our
competitive position through several important acquisitions this year. First, the acquisition of Aker
Solutions ASA’s Process & Construction business expanded our global presence in the mining and
minerals market, making us a top-tier contractor in that market. It also provides us new geographic
regions within South America and Australia, and increases our strength in Europe, North America,
and China.
Our acquisition of CES, a leading India infrastructure and civil engineering company, makes us
one of the largest consulting, engineering, and construction forces in India and fortifies our
resources to address the strong emerging infrastructure market in India, Asia, and the Middle East.
This, coupled with our strong infrastructure presence in the U.S. and U.K., creates tremendous
synergies and market opportunities for us across the globe. Other niche acquisitions enhanced our
position in the government, information technology, and telecommunication markets.
We operate in an extremely competitive marketplace and our success continues to depend on
delivering superior value to our clients while maintaining an industry leading cost posture.
Much like safety, managing costs — both internally and
for our clients — is in our nature. It is fundamental
to the way we operate.
We are encouraged by our performance in the past
year and the fact that the majority of our businesses
are in a growth mode. Our employees are energized
about the future and focused on the most
important aspect of our business: our
clients. Thanks to our employees, our
clients, and our shareholders for
their continued support and
commitment.
Craig L. Martin
President & Chief Executive Officer
Noel G. Watson
Chairman of the Board
3
Inside
We are a relationship-based company. This is our
fundamental business strategy. We focus on
developing strong, long-term relationships with our
clients in all of our markets around the world. Each individual
relationship is different, with its own unique needs and demands. In the
following pages we take an inside look at just a few of our client
relationships and explore the myriad ways these relationships have
contributed to our clients’ businesses.
4 2011 Summary Annual Report
The Relationship “Jacobs’ team provided invaluable services starting with pre-bid input on the
constructability of the design, bidding support, and construction management servicesin the field that provided value to us. Their experience on the guts of moderate scaleconstruction provided a service that was integral to the success of the project.”
Kevin W. Burke, AOLCP, ASLA, ABIProject Manager
ATLANTA BELTLINE “Jacobs’ dedication to safety was important to us, andwe did not have one work-related accident on site.The project was delivered efficiently and professionally,and, importantly, below the original budget.”
Kimberly ParmerProject ManagerCOA Department of Watershed ManagementBureau of Engineering Services
CITY OF ATLANTA
Learn more about the
Historic Fourth Ward
Park on page 36.
5
6 2011 Summary Annual Report6 2011 Summary Annual Report
NASA contractors have always fulfilled a significant role for the American space
program — from building rockets to preparing astronauts’ meals — but as NASA’s
budgetary pressures increase, the Agency turns to its contractors to develop
cost-effective solutions while maintaining a deep commitment to safety. Failure isn’t
an option when lives are on the line. In 2005, NASA’s Johnson Space Center (JSC) sought a partner
to fulfill its Engineering and Science Contract, a partner who could execute complex tasks while
preserving both the bottom line and the safety of the mission.
The Right Stuff
Winning the contract established Jacobs as the primary supplier of engineering, science,
operations, maintenance, and manufacturing services at JSC. With a track record of delivering
technical projects on time and on budget, our team of space experts and scientists also brought to
NASA our company-wide passion for safety.
Stellar Performance
Throughout the contract, until the space shuttle program concluded, we contributed to 22
successful missions providing support services before and after each flight and solving problems
while the spacecraft were in orbit. Current efforts focus on rover prototypes, the James Webb Space
Telescope, the Alpha Magnetic Spectrometer, and many others. NASA continues to face pressure to
do more with less, and Jacobs continues to help the Agency achieve its aims. NASA has extended
the original five-year contract to eight years. Priorities for space exploration may change, but
Jacobs’ commitment to ensuring NASA advances the scientific and exploratory goals of the nation
remains firm.
FEATURE
NASA’s Johnson Space Center relies on Jacobsfor cost efficiency and safety
“The contractor’s work [on thevacuum chamber] has beenoutstanding. Vigilance towardscost saving and avoidance isreadily apparent.”
NASA Performance Evaluation
Board Report
An average day at NASA mightfind the team updating missioncontrol software, developingrover prototypes, and testingspace suits that keep astronautssafe in the space environment.
When a computer failure on theInternational Space Stationthreatened the Atlantis Shuttle,our staff worked around theclock to fix it. NASA awardedthe team a Flight Safety Awardfor their efforts.
Space Shuttle Program
NASA Johnson’s Chamber “A”
Space Shuttle Team
“The Alpha Magnetic Spectrometer(AMS) Team continues to set thestandards for excellence…Thanksfor the outstanding folks on the[Jacobs] AMS Team.”
Steve PorterDirector of Special Projects
JOHNSON SPACE CENTER
Space Shuttle Atlantis
In 2010, NASA recognized ourefforts with the George M. LowAward for outstanding qualityand performance, noting thecompany’s commitment toexcellence, safety, andcustomer service.
We are modifyingNASA Johnson’s largest thermalvacuum chamber for the JamesWebb Space Telescope.
For the Alpha MagneticSpectrometer, we designed andfabricated the support structurethat attaches the equipment tothe International Space Station.
Alpha Magnetic Spectrometer in Space
Alpha Magnetic Spectrometer
Alpha Magnetic Spectrometer Team
George M. Low Award
Supplying 565 million liters of water every day to 2.1 million customers is no easy task,
especially in the water-stressed region of the United Kingdom in which South East
Water (SEW) operates. Add the burden of aging infrastructure, plus scheduled regular
improvement, and the task becomes a real challenge. SEW managers realized that the
delivery model, working with a number of engineering consultants, was no longer able to meet the
increasing demands of the company and the U.K. water industry. To increase the company’s
efficiency in capital investment and ensure delivery of projects on time and on budget, SEW
determined to embark on a new strategy. The solution: build a relationship with a single firm to
support SEW in the delivery of the entire five-year program.
Pooling Resources
In 2010, SEW partnered with Jacobs to create an integrated team, combining SEW’s knowledge of
asset management and stakeholder engagement with Jacobs’ expertise in delivering complex
infrastructure programs. Employees work side-by-side in a combined office and are arranged in a
matrix-style organizational structure, grouping technical experts into a central resource pool from
which the most qualified individuals can target areas of priority.
Smooth Flow
The result? In the first year the team completed more than £48.3 million in projects — achieving
regulatory outputs and on budget. Pre-construction costs were reduced by 20 percent;
environmental consents were obtained without requiring environmental impact assessments; and
communications with customers affected by construction projects increased by 90 percent. The
combined team model exceeded SEW’s expectations, and did so without a single work-related injury
thanks to Jacobs’ influence within the integrated team.
FEATURE
United Kingdom’s South East Water and Jacobs formcombined team to maximize results
8 2011 Summary Annual Report
SEW honors the teamwith 2011 SEWManaging Director’sAward for Departmentof the Year.
“The matrix managementapproach has bene]ts to allinvolved. It gives the Deliveryand Project Managers ^exibilityand peace of mind that theresources will be available todeliver their projects but alsogives the engineers a variety ofdifferent projects to work on,ensuring continued learning anddevelopment and alsomaintaining interest andenthusiasm.”
James SmithDelivery Manager
Capital Delivery Team
“Jacobs has brought a fresh set ofskills into South East Water that havehelped to ensure the EngineeringTeam deliver on time, on budgetand to the highest quality.”
Paul BeamishProject Manager, South East WaterCapital Delivery Team
SOUTH EAST WATER
The integratedteam delivered£48.3 million ofcapital projectsin 2010, ontime and onbudget from astanding start.
Increasing customercommunicationsimproved relationswith local residents,businesses, andgovernments.
By revising the planningprocess, the integrated teamwas able to obtain allenvironmental consents atsignificantly reduced costs.
Jacobs’ influence was key totransforming the safety culturewithin the team. Zero work-related accidents were reportedin the first year.
Across-the-board cost savings— such as a 20 percentreduction in pre-constructioncosts — translate directly intomore resources available forfuture water improvements.More than £350 million remainsin the capital investment budget for the next four years.
Projects were taken from initial concept through ]nal commissioning.
10 2011 Summary Annual Report
FEATURE
OCP grows global reserves, formsjoint venture with Jacobs
Opportunities within the grasp of Morocco’s OCP Group (OCP) are enormous. The country
possesses more than half of known global phosphate reserves, a fertilizer component
essential to healthy crops and productive soils. By expanding mining and production
operations, OCP could reach its potential as the largest producer of phosphate and
phosphate derivatives in the world. The challenge? OCP needed a partner to help execute its expansion
plans, a partner who combined expertise in phosphate technology with experience implementing
multibillion-dollar industrial projects. OCP turned to Jacobs.
Growing Strong
We completed our first project — a small study — for OCP in 1999. That project expanded into an
opportunity to provide full engineering on the revamp of four fertilizer plants in 2001. Over time, services
provided to OCP grew to include technology implementation, detailed engineering, procurement,
construction management and staff augmentation. As the complexity of projects increased, we relied on
in-house experience in complex industrial projects, as well as expertise in phosphate production from the
Jacobs Center for Excellence in Phosphate Technology in Lakeland, Florida, USA.
Well Blended
By 2008, when OCP embarked on its ambitious expansion plans, we’d proven both our capabilities and
our commitment to the company. OCP invited us to form a 50/50 joint venture (Jacobs Engineering SA)
to support OCP’s 12-year/$12 billion investment program to increase production capacity by 70 percent.
The program includes a massive new industrial hub in the port city of Jorf Lasfar, as well as the expansion
or opening of three mines and a 187-kilometer pipeline to carry phosphate ore slurry from the mines to the
industrial hub. Innovative planning and design at the Jorf Phosphate Hub is expected to allow for easy
future expansion; up to 10 new production facilities are expected to “plug in” to the hub’s infrastructure.
Work has only just begun on the expansion program, but through this joint venture, OCP and Jacobs look
forward to helping Morocco become the largest supplier of phosphate rock and fertilizers by 2015.
Caption here
The new slurry pipelinethat transports rock phosphatefrom mines to processing plantsis expected to not only speedproduction, but also greatlyreduce transport costs and saveup to one million cubic metersof water per year.
Demand forphosphates is risingworldwide as globalpopulation boomsand farmers look toincrease agriculturalproduction.
Our support of OCPhelps bolster the entireMoroccan economy.Phosphate and itsderivatives account for,on average, about onequarter of Morocco’sexports and 3.4 percentof its gross domesticproduct.
We are delighted to see almost 400 people
working in Morocco (and hundreds more in Lakeland and Mumbai), all of
whom are supporting OCP business objectives through the execution of our
massive investment programs. We are also gratified that we are building a
professional services powerhouse that will contribute to the long-term
economic success of the Kingdom. The future is bright.”Mr. Mostafa TerrabChairman & Chief Executive Officer
OCP, S.A.
“Having now worked closely togetherfor two years on this new enterprise,we are ever more convinced that wemade the right decision to partner with Jacobs.
Between OCPand Jacobspersonnelattached to thejoint venture, thejoint venture’smore than 200local employees,the Lakeland,Fla., technologycenter, and ourIndia detaileddesign group,there are morethan 700 peoplededicated toOCP’s program.
Caption here
We’re helping OCP modernizeits facilities while remainingcommitted to highenvironmental standards.
The new Jorf Lasfar Hub willhave a “plug-and-play” designthat allows new fertilizer plantsto be added to the existinginfrastructure quickly, easily, andat low cost.
As a result of the successful start of the joint venture’s industrial support,OCP asked it to take over management of its $1 billion facility investmentprogram as well. Nearly 100 projects are now in progress throughout thesouthern half of Morocco to construct a “green city,” the Mohammed VIPolytechnic University, housing, schools, recreation centers, and otherfacilities essential to the quality of life of OCP’s personnel.
12 2011 Summary Annual Report
FEATURE
Highways Agency accelerates systemwidesustainability as Jacobs plots course
Jacobs supports the Highways Agency in its role to help improve and maintain the strategic
road network in England. We’ve designed highway improvements, overseen construction
and developed road specifications. But in 2010 the Agency needed assistance with a task
requiring more than bridge schematics, and wanted a long-term perspective on how to
deliver its goal of making sustainability central to every aspect of the Agency’s work. Developing the
framework for this forward plan would require a close look at every aspect of the Agency’s
operations as well as creative thinking about how sustainability reaches across internal and external
areas of operation. The Highways Agency didn’t need to look far for help: Jacobs’ sustainability staff
has extensive experience in developing corporate sustainability strategies for major clients.
Talent Merge
The first step was to put together a team that combined the skills of highways experts with the
knowledge of sustainability specialists. The team researched worldwide best practices across
multiple business sectors, as well as within transportation agencies. We talked to both internal and
external stakeholders to understand opportunities and develop priorities. We examined current
processes and policies, then went beyond the immediate issues to consider the complex challenge
of planning sustainably for future economic, social, and environmental change.
The Road Ahead
This leading sustainability work from Jacobs and the Agency drew together all of the research and
stakeholder views, creating a robust new approach that is expected to lead the Agency through its
own sustainable development journey. The plan ensures that sustainability principles are clearly
understood and centrally positioned in the Agency’s future thinking and work with its partners.
The Highways Agency is onlyas sustainable as its suppliers.We worked to understandsustainability issues all along thesupply chain.
Sustainability extends into everyaspect of operations at theHighways Agency.
All images Open Government
Licence, Highways Agency
The Highways Agency/Jacobsteam combined the skills ofhighway experts with theknowledge of sustainabilityspecialists.
The Highways Agencychallenges suppliers to makesavvy decisions aboutsustainability.
Developing the framework forthe sustainability plan entailedcreative thinking about howsustainability reaches acrossinternal and external areas ofoperation.
14 2011 Summary Annual Report
FEATURE
TVA responds to environmental disaster, selectsJacobs to lead recovery effort
Early the morning of December 23, 2008, 5.4 million cubic yards of coal-ash poured from a
failed dike at the Tennessee Valley Authority (TVA) Kingston Fossil Plant in Roane County,
Tennessee, USA. The sludge filled the Emory River and nearby ponds, covered roads and
railroads, ruptured a natural gas line and contaminated 300 acres of land. TVA needed to
clean up — fast — and couldn’t do the job alone. They needed a partner to plan and execute the
recovery effort, and to help coordinate with regulators and the public. Armed with years of
experience in environmental remediation, Jacobs took on the challenge.
A Clean Sweep
Highest priority went to cleaning the Emory River. Over 12 months, the team removed more than
3.5 million cubic yards of ash and sediment with up to five hydraulic dredges running
simultaneously. The ash was then loaded into railcars for disposal at an Alabama landfill; ultimately,
414 train shipments encompassing 40,000 railcars of recovered ash left the site. Meanwhile, a
comprehensive environmental monitoring program got underway, assessing potential
contamination of air, water, sediment, wildlife, and vegetation.
A River Restored
Work is still underway, but already the view from the Kingston plant is a long way from the
devastated landscape of winter 2008. The Emory River reopened in May 2010, swallows frequent
the riverbank, and staff say fishing has never been better. Air- and water-quality tests indicate no
long-term environmental problems. TVA is still rebuilding its relationship with the surrounding
community, and Jacobs is assisting TVA in restoring the surrounding area for public recreational
use. Best of all, a new slurry wall around the failed coal-ash pond combined with a new dry-ash
storage system should prevent future disasters. The industry now understands the risks of coal-ash,
and, thanks in part to the hard work of the entire team, including Jacobs, Roane County is safe
and clean once more.
Kingston is one of the largestenvironmental cleanups inU.S. history with project costsexpected to exceed $1 billion.
Before Cleanup
During Cleanup
“From early in this project, Jacobshas been an integral part of theteam dedicated to restoring thearea after the ash spill. The Jacobsteam can be proud of the workwe’ve accomplished so far, and welook forward to the work to come.”
Steve McCrackenGeneral Manager
KINGSTON ASH RECOVERY PROJECT
A new dry-ash storage system is expected to preventfuture spills.
Jacobs assisted with aneducational initiative thatinformed Roane County highschool students about thereasons behind the spill, theimmediate response, ongoingcleanup efforts, and futureenvironmental monitoring.
Our community relations andpublic involvement teamsupported TVA’s near-dailyinteraction with a publicshocked by the ash spill.
Unexpected con^icts had to besolved fast. When constant railtraf]c in and out of the sitecaused public traf]c delays, webrought in rail experts to designmodi]cations to the track andswitching system that eliminatedthe problem.
An on-site team of 65 Jacobsstaff coordinated with the TVA,regulators and contractors,staying on top of a constantlychanging situation.
16 2011 Summary Annual Report
FEATURE
Diesel creates stylish new headquarters weaving itsfashion sense with Jacobs’ expertise
When edgy fashion company Diesel decided to build a new headquarters near
Vicenza, Italy, clearly no cookie-cutter corporate campus would do. Diesel built its
fame on high-quality, cutting-edge style, and the company needed a space that
combined functionality and fashion as effortlessly as a favorite pair of blue jeans.
Diesel’s solution? Rely on Jacobs. We had the right combination of engineering savvy, architectural
finesse, and construction know-how to get the job done.
Green. Bold. Comfortable.
On the 90,000-square-meter abandoned industrial site selected for its headquarters, Diesel needed to
combine multiple functions, including offices, a restaurant, sports facilities, an auditorium, warehouses,
a museum of Diesel fashions, and a daycare center. We helped organize the space, working closely with
Diesel employees to ensure the building supported smooth business operations. The campus
incorporates seven buildings arranged around two courtyards; the final design is unobtrusively stylish,
combining industrial sleekness with warm, natural materials. Every design decision took sustainability
into account, and the structure includes energy-efficient HVAC, a rainwater recycling system, green
roofs, integrated solar panels, and the largest green wall in Europe with more than 10,000 plants. These
efforts won the project Italy’s highest-level energy certification.
Fashionably Safe
A tight construction schedule meant addressing issues before they became problems. The team set a
goal of a zero-accident worksite, a challenge made more difficult by the large number of sub-
contractors and sub-sub-contractors — 209 total — representing more than a dozen nationalities. A
massive education and communication program in multiple languages was put into place to educate
workers on safety procedures, and ultimately the project achieved more than 762,000 hours without
time lost to accident. The headquarters opened on schedule and within budget in September 2010,
with Diesel staff finding their new home as comfortable and stylish as that favorite pair of jeans.
At 250 squaremeters, the green
wall in the receptionarea is the largest
in Europe.
Embracing natural quality, theDiesel design incorporateswarm, natural materials such ascopper and wood that slowlyage and change color.
Energy efficiency promotes asustainable workplace. Thecentral heating system producesthe thermal energy neededto heat/air condition thecomplex with twocogeneration units.
Careful space planningand programming, choice of thebest technological solutions forindoor comfort, andimplementation of the latestconstruction techniques,informed the design to achievean effective workplace.
DIESEL
“The Diesel Creative Team worked sideby side with Jacobs and the architectto put the vision of our Village intopractice. Designed on a human scale,with respect to the natural environment,the space promotes innovativesolutions. Jacobs’ understanding of our creative and business
ideas and their experience in the industry were a great support to
effectively drive our Headquarters project, perfectly responding to our
attitude towards innovation, free-thinking, and success.”
Motorized sun-shades and amotorized brise-soleil systemprotect the building from the hotsummer sun but allow passivesolar heating in the winter. Theresulting increased indoorcomfort enhances well-beingand supports creativity.
Illustrating thecommitment tosafety, Diesel pitchedin and offered morethan 500 items ofDiesel clothing asawards for improvingsite safety.
18 2011 Summary Annual Report
FEATURE
Eastman Chemical Company chooses Jacobs forsupport, maintenance of huge manufacturing complex
Eastman Chemical Company operates one of North America’s largest chemical
manufacturing sites in Kingsport, Tennessee. With more than 7,500 employees, the site
occupies some 900 acres and includes more than 550 buildings, of which 400 are
production facilities. Small issues require close attention — interruptions are time-
consuming and costly. Eastman needed a long-term alliance partner they could trust to work on
capital construction projects, and provide site maintenance support — an alliance partner as
dedicated to Eastman’s success as Eastman itself. They turned to Jacobs.
Formula for Success
As with all heavy industrial chemicals work, Eastman’s work is complex. The projects involve work
in an operating chemical manufacturing complex. Since Eastman and Jacobs became alliance
partners, we’ve completed more than 250 projects, including work on the cellulose triacetate (CTA)
and Eastman Tritan™ Copolyester projects. Add to this equation 37 projects Eastman terms critical
to its business, which Jacobs delivered on time and on budget. Our services also include
maintenance, reconfiguration of labs, as well as fabrication of piping, structural steel, and
equipment to support both maintenance and capital projects. Our team continuously looks for
areas to provide real dollar value to Eastman. Not including savings from budget performance, we
have implemented innovative ideas resulting in significant savings for Eastman.
Savings & Solutions
As the team enters its second year at Eastman, we are a key alliance partner becoming
more integrated with Eastman and its strategic vision for growth. Working together we are creating
an environment where collaborative teamwork, continual improvement, and trust build a
foundation for success.
“You have truly delivered on yourend of the partnership deal. Wethank you for owning the Eastmangrowth vision and look forward toa prosperous future together.”
Mark CoxVice President,Worldwide Engineering and Construction
EASTMAN CHEMICAL COMPANY
Photos courtesy of Eastman
Chemical Company
From left to right: Jeff Fain, Parker Smith,
“Eastman expected Jacobs to begood corporate citizens. In the]rst year, Jacobs hasdemonstrated their commitmentto the Kingsport community inmany ways. By serving on theBoard of Directors for theGreater Kingsport Chamber ofCommerce, United Way ofGreater Kingsport campaigncommittee, FunFestparticipation, and continuoussupport of a great number ofother charities and thevocational-technical trainingvenues in the local community,Jacobs has exceededEastman’s expectations in thisdimension.”
Parker SmithVice President and General
Manager, Worldwide Operations
Support and Global Quality
Eastman Chemical Company
“Jacobs’ outstanding focus on safety, attention to detailand control, and delivery of quality work product, in theface of a tremendous workload increase, has beenrefreshing and impressive.”
Mark CoxVice President, Worldwide Engineering and Construction
Eastman Chemical Company
Through our work with Eastman Chemical Companywe’ve become a part of thecommunity of Kingsport. Forexample, our employees raisedmore than $88,000 for KingsportUnited Way.
In FY 2011 we worked withEastman to achieve more than$2 million in JacobsValue+SM
savings.
Sarah Daly
20 2011 Summary Annual Report
FEATURE
Louisville Water Company channels Jacobs’ talents tobuild one-of-a-kind water supply system
Throughout its 150-year history, Louisville Water Company in Louisville, Kentucky, USA, has
never been content with merely adequate. They’ve always strived to be leaders in treating
water to high standards, staying ahead of the regulatory curve, and setting the benchmark for
other utilities. So when it needed to enhance its water supply, the company looked beyond
conventional strategies to a solution that improves safety, quality, and energy efficiency: riverbank
filtration (RBF). The approach relies on sand and gravel under the riverbed to naturally filter water.
Implementation in Louisville was tricky — it had to provide a large volume of water and needed to
satisfy the community’s desire to preserve the pristine riverscape view. Louisville Water needed a
partner with the skill and vision to execute a complex, creative project. They found one in Jacobs.
It Runs Deep
Making RBF work in Louisville required ground-breaking engineering — in more than one sense.
Previous bank filtration projects would have relied on multiple collector wells — large concrete
structures, each equipped with an above-grade pump station, but the public balked at ruining the view
of the Ohio River. Jacobs developed a new strategy: a mile-and-a-half-long tunnel in bedrock, 150 feet
below the ground surface that can channel up to 60 million gallons of water per day to a new pump
station on the treatment plant site, out of the public’s view. Louisville was the first in the world to
combine RBF with tunneling.
Crystal-Clear Savings
The RBF project began supplying water to the treatment plant in December 2010. RBF water contains
fewer impurities, requires less treatment, and naturally tastes and smells better. Water temperature
hovers around 55 degrees Fahrenheit year-round, reducing stress on the distribution system. Plus, it’s
cost-effective — yearly operating costs are expected to run about $500,000, compared to $1 to $2 million
for conventional filtration systems. The Louisville project won the 2011 Outstanding Civil Engineering
Achievement Award from the American Society of Civil Engineers (ASCE), the first time in the award’s
50-year history that it went to a water supply project.
When the public rejected theidea of 20 or so large wellsblocking the view of the OhioRiver, we helped come up with asolution that moved the bulk ofthe system underground.
As part of the tunneling process,we oversaw a comprehensivesubsurface investigation thathelped determine the ]naldesign.
“Our company has a 150-yearhistory of advancing the scienceof drinking water; this project isanother example of innovationthat will benefit our customersfor years to come.”
Greg HeitzmanPresident & Chief Executive Officer
LOUISVILLE WATER COMPANY
All photos are courtesy Louisville
Water Company except where noted
Riverbank ]ltrationnaturally reducesthe impurities inwater, reducingthe chemicals andenergy required fortreatment.
The RBF project is avital part of LouisvilleWater Company’sstatewide educationprogram to increasekids’ knowledgeabout the importanceof clean water.
The American Society of CivilEngineers noted the project,“represents a signi]cantcontribution to civil engineeringprogress and society.”
Shown at right: Louisville WaterOriginal Pumping Station andWater Tower, circa 1860
The Louisville project is one ofthe largest riverbank ]ltrationsystems in the world, and theonly one to use tunnels inconjunction with collector wells.
Jacobs staff worked hard tounderstand the concerns of thecommunity and ensure thoseconcerns were met.
Photo by David Hathcox/ASCE
M A R K E T P R O F I L E S
CHEMICALS 24
Organic and inorganic chemicals
Olefins
Specialty polymers
Polyolefins
Phosphates and potash
AEROSPACE & DEFENSE 30
Technical, engineering, andscientific mission support
Advanced aerospaceresearch/development/testand evaluation facilities andlaboratories
Information technology andenterprise information support
OIL & GAS 26
Gas compression, transmission,treatment, and handling
Sulfur recovery
Water treatment, disposal, andwater flooding
Offshore platforms and topsides
Oil and gas production
Heavy oil production and oil sandsextraction
REFINING 28& PETROCHEMICAL
Crude and vacuum units
Conversion: FCCU,hydroprocessing, coking
Clean fuels: gasoline and diesel
Reforming/aromatics
Sulfur removal and treatment
MISSION-CRITICAL 40& HIGH-TECH FACILITIES
High-energy physics installations
Nanoscience research andproduction facilities
Semiconductor facility base buildprogramming, tool installation, andsustaining engineering
Program management
Building Information Modeling (BIM)
Computational Fluid Dynamics(CFD) Modeling
POWER & UTILITIES 42
Utility and infrastructure masterplanning
Feasibility studies and conceptdesign
Central plant design
CHP/cogeneration
Electrical distribution/substationdesign
Commissioning
Gasification and carbon capturetechnology
Renewable technologies
MINING & MINERALS 44
Minerals processing
Hydrometallurgy
Electrorefining and electrowinning
Pyrometallurgy
Pelletizing technology
Materials handling
Bio-oxidation
Infrastructure
Sulfuric acid technology
Environmental
FOOD, BEVERAGE, FOREST 46& CONSUMER PRODUCTS
Food processing, packaging, andmaterials handling
Bottle, can, and keg packaging
Malting, brewing, fermenting, andblending processes
New paper machines and rebuilds
Mill optimization: energy/utilitymaintenance and shutdowns
Personal care product facilities
Converting
22 2011 Summary Annual Report
ENVIRONMENTAL, 36WATER & WASTEWATER
Environmental consulting,contaminated lands, flood control,accelerated environmental cleanup
Water-quality compliance and long-term groundwater monitoring
Nuclear facilities decontaminationand decommissioning
Chemical and explosive ordinancedemilitarization
Water/wastewater conveyance andtreatment
BUILDINGS 38
Government: administrative,security, and defense installations
Health/Research: replacementhospitals and advanced research
Education: K-12 and highereducation
Justice: courts, prisons, and jails
Corporate buildings and industrialfacilities
Retail and mixed-use centers,recreation complexes, andcommercial facilities
PHARMACEUTICALS 48& BIOTECHNOLOGY
Sterile products manufacturing
Bulk pharmaceuticals
Pharmaceutical finishing
Research and developmentlaboratories, and pilot plants
Biotechnology
Fine chemicals
AUTOMOTIVE 32& INDUSTRIAL
Building, equipment, and systemslayout and integration
Automotive test facilities:powertrain test cells, emissionschambers, climatic wind tunnels,and aero/acoustic wind tunnels
Test facilities operations,maintenance, and metrology
Modeling and simulation
www.jacobs.com 23
“We put client priorities ahead of our ownby thinking, ‘It is not about us.’ The keyto our growth is the success of ourclients’ projects.”
BengtJacobs, Vice President, OperationsGermany and Sweden
TRANSPORTATION 34
Roadways, bridges, and intelligenttransportation systems
Railroads and transit
Underground structures and tunnels
Locks, dams, ports, and marine
Aviation
24 2011 Summary Annual Report
Dow Corning
Third Asian Pillar Project Phase II
Engineering, procurement, construction, and pre-commissioning
Zhangjiagang, People’s Republic of China
Image courtesy of Dow Corning
“A sustainable business depends on a reputation of trust and deliveringresults. By getting deeply involved with our clients’ business objectives,
we advise our clients on their best possible investments, such asoptimizing a process versus new capital investment. Our core valuesprovide the tools for supporting every business decision we make.”
AméricoJacobs, Vice President, Latin America
Santiago, Chile
North American producers are also responding to both
the challenge and the opportunity posed by inexpensive
natural gas from shale. Older plants often can’t process
the gas, limiting options for some but opening doors for
those with the right capabilities. Shale gas production also creates
fewer valuable by-products such as propylene and butadiene,
increasing demand on those able to manufacture the
chemicals directly. In 2012, we expect manufacturers to
begin adding new facilities to take advantage of these
opportunities. We can assist these customers in
assessing market potential as well as in the design,
construction, management, and maintenance of
new or retrofitted facilities. We also help clients
make the most of their investments with cost-
cutting strategies such as global sourcing of
materials; our worldwide reach gives customers
maximum purchasing power with maximum
confidence, since our expediting and inspection
capabilities ensure quality control. Clients can draw on
the expertise of our staff around the world, and customers
in China, India, the Middle East, and Morocco can also
rely on local personnel who understand local conditions.
CONTROLLING COSTS
Our strengths in cost control were critical
on a recent project for a key client in this
market to design a new petrochemical
manufacturing plant. Our experts
proposed and developed design changes
totaling $103 million that resulted in
lowering the estimated installed cost
by approximately 11 percent.
www.jacobs.com 25
Slow, Steady Growth Sparks Construction, Expansion
Growth in the chemicals and basic resources market has been steady to strong through 2011. Demand was driven
by thriving Asia-Pacific, Middle Eastern, and Indian markets, offsetting slower recovery in Europe and North America.
Producers in these newer markets are challenging North American and European manufacturers, whose aging
facilities must compete against newer petrochemical plants in developing countries. North American and European
companies are responding by revamping existing facilities and evaluating the construction of new plants — investments
unthinkable a few years ago.
C H E M I C A L S
Artlant PTA (previously Artenius Sines PTA SA)
Artlant MegaPTA (Previously Artenius MegaPTA)
Basic and detailed engineering, procurement,and construction management services
Sines, Portugal
Arkema
Acrylic Acid Expansion
Engineering, procurement, and construction management
Clear Lake, Texas, USA
26 2011 Summary Annual Report
O I L & G A S
Accessing Reserves and Maximizing Resources Key to Sustained Growth
Growth in the oil and gas exploration and production sector remained strong through 2011 and should continue to pick
up in 2012. Expanding markets in India and China improved, while economic conditions in Europe and North America
increased demand for oil and gas worldwide, in particular in the Canadian oil sands. International oil companies
are responding by developing reserves, as well as getting more out of existing resources. Our expertise in a range of
production methods, combined with our commitment to safety and strength in project management, makes Jacobs
the go-to firm for oil and gas operators.
The long-term challenge for oil and gas companies
continues to be access to reserves, which are either in
remote locations or deep water. Pressure is on to
maximize the potential of existing resources. We can
help clients extend the life of their investment through both
brownfield development and modification and maintenance of
existing infrastructures. Operators are also looking to shale
gas as an alternative to conventional oil and gas.
Trends in this sector include exploration of shale gas
resources in India and Europe, and the buyout of
independent shale gas producers by major oil
companies. Clients seeking to expand into shale gas
turn to us for specialized expertise in this field.
Overall, our reach in the oil and gas market is
expanding as clients recognize our strengths in a
wide range of technologies and engineering
capabilities. Companies particularly value our
experience in project management systems for
increasingly complex projects, as well as our
geographic diversity that enables us to resource
projects locally and in extreme locations.
SAFETY INNOVATION
Our brownfield experience is evident
on a regenerative gas heater project for
Santos. The project team – an alliance
between Jacobs, UGL, and Santos –
developed an innovative equipment
design that eliminated a high-risk
maintenance activity on a gas heater
project. The project team received
Santos’ Directors EHS Award for
the design.
BP Products, North America
Whiting Refinery Modernization Project
Preliminary and detailed engineering, procurement,and modular fabrication
Whiting, Indiana, USA
EnerSea Transport, LLC
Centrica Energy Block 22 pre-FEED Marine CompressedNatural Gas Transport
Project management, gas plant engineering and design
Caribbean
Santos
Moomba Regenerative Gas Heater project
O&G Solutions is a joint venture between Jacobsand UGL, forming an EPC Alliance with Santos.The alliance has been implementing brownfieldsprojects for more than seven years.
Adelaide, South Australia, Australia
Shell (Operator), BP, and Chevron
Perdido Surveillance Engineering Support
Surveillance engineering support
Gulf of Mexico
www.jacobs.com 27
“We are here because of our clients and all our daily activities revolvearound this theme. In our day-to-day operations, we give the bestservice to our clients, which helps to build trust and goes a long wayin building a sustainable long-term relationship.”
KoyeliJacobs, General Manager, ProcessMumbai, India
28 2011 Summary Annual Report
ExxonMobil
BS2B Electrical Infrastructure Project
Engineering, procurement, and construction management
Baton Rouge, Louisiana, USA
“I strive to build team unity in our project work.Our success is inextricably tied to our clients’ success.
We are all in this together.”
ValettaJacobs, Process Engineer, Process Engineering Section Manager
Houston, Texas, USA
BP
G10 Project at BP Refinery Kwinana
Engineering, procurement, and construction management
Queensland, Australia
Image © BP p.l.c.
Booming Automotive Markets Fuel Continued Expansion
The improving economy resulted in overall growth for refining and petrochemical companies in 2011. Expansion is
expected to continue through 2012 with demand from the booming automobile market in India and China making up for
the slow recovery and unpredictable regulatory climate in North America and Europe. Oil companies are making
the most of their improved situation to reduce costs, increase efficiencies, and provide value. We’re well-positioned to
build long-term relationships with clients to help them achieve these goals.
R E F I N I N G & P E T R O C H E M I C A L
Investment activity in the refining and petrochemical business is
concentrated in the Middle East and Asia. Canada is also
experiencing substantial growth in heavy oil processing to the
point many operators are struggling to find experienced labor.
Our worldwide reach, supplemented by long-term alliances and
teaming agreements with local experts, allows us to support
clients wherever they need to be. The long-term market
situation is less certain in the United States and Europe.
Demand is expected to decline as fleet fuel efficiency
increases, and production costs are expected to rise as
environmental regulations tighten. Companies are
responding by increasing their feedstock diversity
and improving the conversion of conventional oil.
We provide clients process expertise in heavy oil
production, as well as with “bottom of the barrel”
projects that convert a higher percentage of crude
oil than traditional technologies. We can also develop
big-picture strategies that allow companies to cut costs
and improve efficiencies.
Hindustan Petroleum Corporation Limited (HPCL)
LOBS upgradation project
PMC for ISBL, design, and procurement assistancefor long lead items, and EPCM for OSBL facilities
Mumbai, India
EFFICIENT PRODUCTION
Evolving, tightening environmental
regulations are affecting many of our
clients, and we’re there to help develop
the project solutions needed to meet
those demands. For the G-10 project
at the BP Kwinana Refinery in Australia,
we revamped the refinery’s existing high-
pressure hydrotreater to better equip
the unit to reliably produce diesel at 10
parts-per-million (ppm) sulfur, meeting
Australian Federal Government regulations.
Indian Oil Corporation Limited
DHDT Reactor
Engineering, procurement, construction management,and commissioning assistance
Vadodara, India
www.jacobs.com 29
BUDGET-SMARTEFFICIENCY
Our skills at reducing costs were put to
the test at NASA’s new Thermal
Protection System Development Facility,
located at the Marshall Space Flight
Center. The facility develops insulation
materials to protect spacecraft from the
dangerous accumulation of ice on the
vehicle before launch. NASA planned to
build two processing facilities, one for
applying primer and another for spraying
insulating foam onto vehicles, but Jacobs
found a way to combine these activities
under one roof. This saved NASA
$10 million, allowing the agency to meet
its priorities in a budget-smart way.
30 2011 Summary Annual Report
Cost Pressures Spur Market Transitions
Transition characterized the aerospace and defense market in the past year, particularly in the United States,
United Kingdom, and Australia, the result of growing demand to reduce defense spending. In the U.S. aerospace market,
this pressure resulted in the cancellation of several initiatives, while aggressive cost cutting at the Department of Defense
has put new emphasis on doing more with less. However, in the last few months NASA has revamped its mission and
has a positive forward outlook.
A E R O S P A C E & D E F E N S E
Going forward, we anticipate these trends continuing,
although new opportunities may arise as commercial
operators develop private spaceflight. Opportunity also
exists in the related IT and facilities sectors worldwide.
Military customers are expected to select contractors primarily on the
basis of cost, seeking the “lowest price, technically acceptable” vendor.
As drawdowns in Iraq and Afghanistan continue, the
U.S. military needs training and logistics support to
accommodate returning troops. Our competitive costs
and high-quality services allow us to ease customers
through difficult times. For example, we can help
NASA retain the specialized skills essential to future
space programs. As new programs emerge, we
can help design, build, maintain, and operate
test facilities, as well as conduct the tests
needed to prove the capabilities of new
systems. We can assist defense customers by
providing quality services at low cost and have
the agility to step in at short notice.
Australian Customs and Border Protection
Acquisition of Customs Vessel Ocean Protector
Contract management and project support
Canberra, ACT, Australia
NASA Langley
ROME Hydro Impact Basin, Langley Research Center
Construction support, facilities maintenance and operations,site services, production support and integration, projectmanagement and engineering, safety, health andenvironmental services
Hampton, Virginia, USA
NASA Stennis
A-3 Test Facility, Stennis Space Center
Conceptual and detailed design, constructionmanagement services
Hancock County, Mississippi, USA
“We use internal experts who have been in the client’s position tohelp plan and evaluate the services provided. For example, as we developmission planning tools for the Air Force, we use ex-flyers,-navigators, and -aircrew members on requirements and testing teams.”
Jim Jacobs, Vice President/Deputy General ManagerFort Walton Beach, Florida, USA
NASA
Mid-Air Delivery System “MDS” Sled Project,Michoud Assembly Facility
Manufacturing of sled: procurement ofmaterial, fabrication, weld, proof load, andapplication of primer
New Orleans, Louisiana, USA
www.jacobs.com 31
32 2011 Summary Annual Report
Scania
Scania CD7 Climatic Wind Tunnel
Engineering, procurement, and construction
Södertälje, Sweden
Rendering
“In my job, everything I do is done with lenses focused from the clients’perspective. Translating everything we say, everything we do, helpsgive the client an inside view of how and why we make decisions.
It advances trust and deepens the relationship.”
JulesJacobs, Vice President, Northern Region Sales
Conshohocken, Pennsylvania, USA
www.jacobs.com 33
A U T O M O T I V E & I N D U S T R I A L
Global Economy Stabilizes, Recovery Accelerating
Market conditions continue to improve for automotive and industrial firms worldwide. Automobile manufacturers
experienced increased production for the third year running, with 76 million light vehicles expected to roll off the line
worldwide this year. Market share increased for U.S. automakers but declined for those in Japan affected by the
earthquake and tsunami; however, recovery is proceeding faster than expected, and Japanese manufacturers should
regain full production capability by the end of 2011. Meanwhile, the industrial sector improved as the global
economy stabilized.
Manufacturers worldwide are cautiously optimistic in
expecting growth to continue, though ongoing concerns
about the economy are cause for some uncertainty in the
2012 outlook, particularly in Europe where the debt crisis is
undermining confidence. The automotive market, however, is anticipating
steady improvement, with decline in the Eurozone offset by rising demand
in India and China. We are well-placed to help automotive and industrial
clients confront the various pressures they face. Automotive test
facilities are growing increasingly important to clients seeking
to improve fuel economy and develop active safety
systems. Our strength in the design/build and operation
of test facilities can improve the quality of data
gathered while cutting utility costs. Manufacturers
need to keep costs low while investing in their
facilities. Our depth of experience allows
us to draw on experts from around the
world, even providing expertise lost within
a company to retirement, downsizing or
outsourcing. We can also extend the life of
existing facilities through smart maintenance processes
that minimize downtime.
Windshear
Windshear Rolling Road Wind Tunnel
Design, construction, ongoing engineering, operations,management, and business development services
Concord, North Carolina, USA
CONTINUOUS IMPROVEMENT
Our skills are at work with a major
automotive client, where our maintenance
program has resulted in more than
$3.5 million of annual operational savings.
Our continuous improvement process
identified areas of inefficiency, and
experts tackled them one by one, allowing
the company to maximize its investment
in its facility.
Honda R&D
R&D Wind Tunnel
Engineering, procurement, and construction
Sakura, Japan
WilliamsF1
Wind Tunnels 1 and 2 Test Operating Systems
Software development, supply, and installation
Grove, Wantage, Oxfordshire, England, United Kingdom
34 2011 Summary Annual Report
Road Ahead: Speed and Innovation Merge to Create Opportunities
While some bright spots provided welcome opportunities, on the whole the transportation sector remained flat in 2011.
With economic recovery continuing to be sluggish, 2012 is unlikely to provide much change. That’s the big picture —
look at the details and positive signs emerge, ranging from major investment in freight rail in the United States to massive
expansion of the Chinese highway network. We’re working closely with clients to make the most of these opportunities,
building on long-term relationships with transportation authorities. We’re also helping cash-strapped governments take
advantage of alternative delivery methods and public-private partnerships to expand their infrastructure systems.
T R A N S P O R TA T I O N
New Jersey Department of Transportation
Route 36 Highlands Bridge over the Shrewsbury River
Detailed superstructure, engineering design, andconstruction phase services
Highlands and Sea Bright Boroughs, Monmouth County,New Jersey, USA
Signs of growth hold promise for the transportation sector
long term. In the United Kingdom, rail ridership is
climbing. In the Middle East, Qatar is embarking on major
infrastructure improvements in advance of the World Cup.
China continues to expand its highway network at a remarkable rate,
while India intends to double its highway project pipeline in 2012.
Investment in freight rail is up in the United States, and 20 states
have announced plans for high-speed rail. What many of
these projects have in common is an emphasis on speed
and innovation: Projects are often fast-tracked and many
rely on alternative financing and delivery methods. We’re
positioned to help clients with both challenges. Workshare
among offices and high-value design centers can
complete designs quickly and keep costs low, while our
experience in public-private partnerships, innovative
financing, and design/build helps clients save money and
balance risk. We offer these unique skills alongside our
full life-cycle capabilities, including planning,
environmental permitting, design, engineering,
construction and program management for highway,
rail, and aviation projects.
MULTI-OFFICE EXECUTION
Our expertise in multi-office project
execution was instrumental in helping the
North Texas Tollway Authority achieve
on-time delivery of the Sam Rayburn
Tollway/U.S. 75 Interchange project in
McKinney, Texas. In addition, the project
schedule demanded accelerated project
delivery, resulting in completely revised
schematic documents in three months,
and final plans, specifications, and
engineering documents completed in a
precedent-setting nine months.
Heathrow Airport Limited
Energy Infrastructure Project (EIP), Heathrow Airport
Project management, architecture, building services, civiland infrastructure, structural engineering, environmentaland fire engineering
London, England, United Kingdom
Highways Agency
Sustainable Development Framework
Strategic sustainability advice
Nationwide, England, United Kingdom
Image courtesy of the Highways Agency www.highways.gov.uk
Exposition Construction Authority
Exposition Light Rail Line, Phase 1
Construction management support services, includingplanning, project and construction management, projectcontrol, estimating, and field inspection
Los Angeles, California, USA
www.jacobs.com 35
“I’m constantly working to identify best practices and lessons learned.While we are aware of what we’re doing in a specific sector for aspecific client or group of clients, an innovative idea from elsewherein the company can often add the most value.”
ChrisJacobs, Inside Sales ManagerGlasgow, Scotland, United Kingdom
36 2011 Summary Annual Report
Atlanta Beltline, Inc.
Historic Fourth Ward Park – Phase I Project
Construction management
Atlanta, Georgia, USA
“Understanding the way our clients define success is essential.Delivering projects that meet specific client expectations
advances our client relationships.”
LevitteJacobs, Director, Federal Operations Sales
Oak Ridge, Tennessee, USA
www.jacobs.com 37
Old Meets New: Emerging Economies and Aging Infrastructure Add to Growth
The state of environmental, water, and wastewater industries varied across regions and markets in 2011. The thriving
economies of India, China, and the Middle East saw heavy investment in water and wastewater systems, while
cash-strapped governments in North America and Europe struggled to address the challenges of drought and aging
infrastructure. The environmental market experienced widespread growth in 2011, with worldwide spending up by
more than six percent over 2010.
E N V I R O N M E N TA L, W AT E R & W A S T E W AT E R
United States Army Corps of EngineersNew England District
New Bedford Harbor Superfund Site
Engineering, remediation/dredging, construction and construction oversight, modeling, and sampling
New Bedford, Massachusetts, USA
Looking forward, public sector clients in North America
and Europe are expected to face continued pressure to cut
spending through 2012, although new waste reduction
legislation in the European Union is expected to result in
new recycling and waste processing projects. Governments in Asia,
India, and the Middle East may invest in both conventional water
supply systems and water recycling and desalination
projects. With economic improvement, private sector
clients expanding facilities may increase spending on
environmental studies and permits. Our breadth and
depth of experience allow us to assemble teams of
experts who put together the pieces of water,
wastewater, and environmental projects. We can assist
public sector clients in maximizing taxpayer dollars
and private sector clients in the entire permitting
process. One of the greatest strengths of our
environmental practice is the ability to demonstrate
the benefits of sustainable solutions — we don’t
just promise results, we prove them. We also offer
expertise in innovative, cost-saving engineering
solutions such as tunneling and trenchless
technology for water and wastewater projects.
CARBON CONSCIOUS
Our skills in both environmental services
and water infrastructure came together
as part of the @One Alliance, delivering
$1.3 billion of capital improvements to
the U.K.’s Anglian Water Services.
Through construction and process
innovations, embodied carbon has been
reduced by 40 percent and operational
carbon by 120 percent as of April 2011,
coming close to achieving zero
construction waste.
Magnox Limited
Trawsfynydd decommissioning site
Working in joint venture to provide decommissioningservices across three waste streams
North Wales, Wales, United Kingdom
URENCO ChemPlants Limited
Tails Management Facility
Project management, design engineering, procurement,construction management, and inactive commissioning
Capenhurst, England, United Kingdom
38 2011 Summary Annual Report
B U I L D I N G S
Jacobs has planned, designed, and constructed buildings
for a variety of clients and markets for more than 60 years.
Our global presence and unique understanding of
contracting and delivery demands keep us in excellent
position to provide professional services worldwide. Our recent
acquisition of design firm KlingStubbins reinforces our
commitment and portfolio, increasing our leverage in the
pharma-bio, data center, government intelligence,
corporate headquarters/interiors, and science
and technology-based education markets
around the globe. Our philosophy balances
creativity, functional requirements, technical
excellence, and cost effectiveness. We strive to
develop unequaled building solutions for our
clients. Our integrated, Building Information
Modeling (BIM) driven project delivery technology
platform advances design, cost, schedule, and operations
data, while our programming and planning expertise allows
us to help clients determine the most appropriate design,
procurement, and construction options for their projects.
AN INTEGRATED APPROACH
Jacobs’ multi-discipline approach was
evident on the Northern Ballet project,
delivered as part of Jacobs’ Strategic
Design Alliance with the client, Leeds City
Council, and for which we provided a
range of services, including architecture,
engineering, and cost consultancy.
The integrated approach enabled us to
re-site the building, reducing groundwork
costs and allowing surplus land to be sold
off – thereby bringing to fruition a project,
which had been more than 10 years in
the making.
U.S. General Services Administration
Christopher S. Bond United States Courthouse
Construction management and commissioning
Jefferson City, Missouri, USA
Chinese Hospital Foundation
New Chinese Hospital
Full architecture and engineering design services
San Francisco, California, USA
Sustainable Design Trends and Construction in Asia, India Improve Market Outlook
The buildings market weathered the economic turbulence of recent years fairly well and continues to improve. We anticipate
ongoing investment in national security, government buildings, education, lab research and development, and mission-
critical facilities, while the global healthcare and high-tech markets are showing signs of strength. Looking forward, we expect
clients worldwide to continue to focus on total cost of ownership, asset management, and energy and life-cycle cost, with
emphasis on sustainable building design, appropriate technologies, and advanced materials. We anticipate an upsurge of
sustainable projects in the Middle East, and are well-equipped to help our clients there and around the globe meet their goals.
Internal Revenue Service
IRS Philadelphia Campus Consolidation
Strategic planning, space programming, conceptual andinterior design, and construction management
Philadelphia, Pennsylvania, USA
Leeds City Council
New Headquarters for Northern Ballet and PhoenixDance Theatre
Architecture, structural engineering, building services,cost consultancy, BREEAM assessor, constructiondesign, and management coordinator
Leeds, England, United Kingdom
www.jacobs.com 39
“With true understanding of a client’s priorities and expectationscomes a full comprehension of value and the definition of success.Those priorities become yours as well: There is no longer a need todecipher between the client’s priorities and mine.”
NinaJacobs, Principal, Asset Management and Assessment Services Fort Worth, Texas, USA
40 2011 Summary Annual Report
Chinese Academy of Sciences
Information Science Building
Architecture and engineering services
Beijing, People’s Republic of China
TonyJacobs, HSE Project Specialist
Houston, Texas, USA
“In our business we often work in integrated project teams in sharedoffice spaces, so it’s key to build personal relationships with client teammembers and work to meet their needs and exceed their expectations.Availability and reliability are two critical areas where we build trust and
show our clients the Jacobs difference.”
Mission-Critical and High-Tech market growth not
only remained firm in 2011, but also should
continue into 2012 and beyond. Experts note this
growth is sustainable, based on demand, not
speculative, as was seen in the run-away market of the late 1990s.
As they plan new facilities, clients emphasize efficiency.
They’re seeking the reduced energy costs and lower cost
of ownership that can result from “greening” the data
center. They also want intelligent facilities that can
ramp up as usage increases and ramp down as it
decreases, a strategy that can reduce operating costs
while satisfying business requirements. Public and
private market demand for high-computing
facilities is strong. As the private market strives
for energy efficiency, the public market looks for
consolidation into new facilities both owned
and leased. This includes expansion of cloud-
based services and cloud service providers. We
are poised to leverage both sides of this market.
www.jacobs.com 41
M I S S I O N - C R I T I C A L & H I G H - T E C H F A C I L I T I E S
Gaining Green: Efficiency and Agility Drive Tomorrow's High-Tech Facilities
Strong growth continued in the market for mission-critical and high-tech facilities for the tenth year running. Demand
in the sector is evolving as clients shift their strategy from a focus on keeping facilities and critical systems running
24/7/365 to a modular approach that can accommodate different levels of demand and operation depending on business
needs. At the same time, a paradigm shift in technology is allowing clients to dramatically improve the energy efficiency
of their operations. With our one-stop, turnkey services, we can help clients meet new needs and create the
mission-critical and high-tech facilities of tomorrow.
GLOBAL RESOURCES
Development of sophisticated
mission-critical and high-tech facilities
requires expertise in every member of the
design team, giving us a distinct
advantage. With experts on staff
worldwide, we can put together diverse
project teams from our own roster, as well
as provide design, program management,
commissioning, network consulting, and
procurement services. We also have
unmatched experience in energy
modeling, advance controls, building
information modeling, and infrastructure
modularity.
U.S. Army Corps of Engineers, Baltimore District
NGA Campus East Technology Center and Central Utility Plant
Architecture, engineering, and interior design services(RTKL/KlingStubbins joint venture)
Fort Belvoir, Virginia, USA
SLAC National Accelerator Laboratory
Linac Coherent Light Source I
Full architecture and engineering services, tunneling design,and contract administration
Stanford University, Menlo Park, California, USA
42 2011 Summary Annual Report
P O W E R & U T I L I T I E S
Bonneville Power Administration (BPA)
Build and replacement of transmission lines, substations,and ancillary communications projects
On-site construction administration and inspection services
Northwestern USA
Power & Water Utility Company for Jubail and Yanbu(MARAFIQ)
Steam Turbine Generators 5 & 6
Project management consultancy services
Yanbu, Saudi Arabia
Market Enjoys Strong Long-Term Forecast, Faces Questions About Nuclear Safety
The long-term outlook for the energy market remains bright, with worldwide demand expected to grow more than
50 percent through 2035. Short term is less certain, as the economies of North America and Europe continue to struggle.
The damage to the Fukushima nuclear plant in the earthquake and tsunami raised new questions about nuclear power
safety. With years of experience in nuclear engineering, we help clients address concerns and develop solutions to meet
their local needs. We’re ready to plan, design, and deliver conventional energy projects ranging from small-scale renewable
programs to multibillion-dollar power-generating facilities.
Industrialization and economic growth in emerging markets are
creating soaring demand for energy. Power companies seeking to
expand into these regions need partners with the right
combination of energy expertise and local know-how. Our strength
working across regions and local presence in countries, including India,
makes us an important player in this market. Meanwhile, U.S.
energy companies are turning to natural gas as an energy
source, and we’re involved in bringing several
gas-powered plants online. Energy investment in Europe
is concentrated on extending the lifetimes of aging
facilities, and European governments are also closely
examining their reliance on nuclear power in the
aftermath of Fukushima. Some have decided to shut
down existing nuclear plants, while others have
confirmed their support for nuclear energy and are
looking at improving safety measures. Worldwide, all
power and utility providers are seeking the greatest
return on their investment, making us a preferred
partner for energy projects. Our emphasis on continuous
improvement aligns with the market’s need for
cost-effective, high-quality solutions.
EFFICIENT UTILITIES
Efficiency was key for Texas A&M
University (TAMU), where we provided
detailed design, start-up, and
commissioning services for its new
Combined Heat & Power (CHP) Upgrade
project. This CHP system is expected to
provide the majority of the TAMU campus
electrical and thermal loads year round
for the next 25–30 years, and should
increase the process efficiency from
55–75 percent, saving the University
approximately $500,000 per month in
utility costs.
www.jacobs.com 43
Thermal Energy Corporation (TECO)
Master Plan Implementation Program
Master planning, technical reviews, on-site programand construction management
Houston, Texas, USA
Ashish Jacobs, Finance ManagerAbu Dhabi, United Arab Emirates
“By providing the right opportunity and intense focus, Jacobs not onlyextracts the best out of its employees, but also instills a sense ofdedication toward our clients. Our focus is all about clients’ priorities,and how we can not only meet but exceed their expectations.”
44 2011 Summary Annual Report
Compañía Minera Doña Inés de Collahuasi SCM
EPCM Nuevo Chancador Primario y Correas Transportadoras
Engineering, procurement, and construction management
Iquique, Tarapacá Region, Chile
“Our strategy puts client priorities first, and is agile enough toadapt to changing needs. Jacobs’ procurement strategy is
like the chameleon. It adapts to the color of our clients,without losing its own norms and standards.”
ZouJacobs, Procurement Director
Shanghai, People’s Republic of China
www.jacobs.com 45
Golden Opportunity: Vast Demand Drives Robust Investment
The mining and minerals market had a strong finish in 2011 and expects an even more successful 2012. Demand is
consistently outpacing supply, driving up commodity prices around the world. Our clients are responding by investing
in new development. Their efforts are limited by a tight labor market and economic concerns, but we’re able to help
overcome these challenges through our expertise in the issues unique to each mining region.
M I N I N G & M I N E R A L S
Masan Resources Corporation
Nui Phao Mining and Minerals Project
Engineering and procurement for a new mineralsprocessing facility at a poly-metallic deposit
Thai Nguyen Province, Northern Vietnam, Vietnam
CHALLENGING ENVIRONMENTS
We help clients operate in some of the
world’s most challenging environments.
For Antamina Mining Company, we’re
participating in the expansion project in
the Peruvian Andes at more than
14,500 feet. The expansion is expected
to allow Antamina Mining Company to
increase production while maximizing
investment in its current plant
and equipment.
Minera Chinalco Peru S.A.
Toromocho Project
Engineering, procurement, and construction management
Morococha District, Peru
Mining companies have seen the prices of several metals and
minerals soar — copper tripled over the past three years, and
gold rose by more than 50 percent in the same period. It’s a
case of supply not meeting demand, and clients are looking to
expand operations to take advantage of the market. Investment is limited
by the difficulty of finding workers — the mining labor market is tight in
several key regions — and concerns that governments may seek to grab a
greater share of mining profits. With our recent acquisition of Aker
Solutions ASA’s Process & Construction business, we are even
more well-positioned to help clients address these challenges
in places like Australia, South America, and Africa. Our
mining and minerals business operates worldwide,
targeting non-ferrous and ferrous metal markets,
precious metals, energy minerals such as uranium
and coal, and industrial and fertilizer minerals such
as phosphates and potash. Our long-term
relationships with clients and our global reach allow
customers to tap into an experienced and familiar
labor pool. Clients can count on us for new plant construction,
brownfield expansion, and maintenance, either through our
construction management practice or our specialized direct-hire
construction team. We also offer clients proprietary technologies
for sulfuric acid production and iron-ore pelletization.
46 2011 Summary Annual Report
Globalization, Efficiency and Specialty Products Offer Opportunities for Growth
Food, beverage, forest, and consumer products manufacturers continue to find ways to thrive in a largely flat market.
In 2011, food and beverage companies discovered innovative ways to cut costs and improve market share through
globalization, while mergers and acquisitions increased capabilities and offerings for many organizations. The forest
products market saw exceptional growth in the manufacture of specialty pulp used for products from filters to
pharmaceuticals, and fabrics to food additives.
F O O D, B E V E R A G E, F O R E S T & C O N S U M E R P R O D U C T S
Sustainability is expected to be a major theme in 2012.
Our clients recognize that cutting energy and water
costs improves their bottom line while a corporate
commitment to sustainable practices improves their
reputation in the market. We expect clients within the forest
products market to focus on getting the most out of existing
resources by mothballing inefficient assets and optimizing the
performance of critical facilities. Forest products clients in
the United States are also keeping a close eye on
pending regulation of boilers, which could require
significant investment in retrofitted or replacement
equipment. With hundreds of LEED-accredited
professionals on staff, we can help clients achieve
maximum reductions of water, carbon, waste, and
energy. We can also combine our strengths in
sustainability with our full-service engineering,
procurement, and construction management
services to develop the most cost-effective, “lean”
solutions for our clients. Our global reach allows us
to support clients moving production to emerging
markets either to find cost savings or to produce
products for the growing middle class in countries
such as India and China.
EFFICIENT, ON BUDGET
We provide expertise in vertical start-up
and immediate achievement of full
performance of a new line. For a new
high-speed packaging line for a
food-and-beverage client, we saved
thousands of dollars in start-up labor,
material, and lost-production costs and
increased production from 700,000 to
900,000 cases per year, all while staying
on time and within budget.
Marico, Ltd.
200TPD Edible Oil Facility
Engineering, procurement, construction management,and commissioning assistance
Himachal Pradesh, India
Shandong Chenming Paper Holdings, Ltd.
Zhanjiang Chenming (ZC) Chlorine Dioxide Plant
Technology, engineering, equipment, and site services,including technical advisory for installation of equipmentand commissioning
Zhanjiang, Guangdong province, People’s Republic of China
www.jacobs.com 47
Nestlé Servicios Industriales S.A. de C.v.
Toluca Line 3
Construction management support
Toluca, Mexico State, Mexico
“The key to providing the best value to our clients is to always listento their needs. I also always bear in mind the available Jacobs tools,in particular JacobsValue+SM. Achieving value helps promote clientsatisfaction and loyalty.”
RichardJacobs, Vice President, OperationsHong Kong
48 2011 Summary Annual Report
Chiesi Farmaceutici
Chiesi Farmaceutici Research & Development Centre
Masterplan, conceptual and programming, basic anddetailed design, permitting, procurement and constructionmanagement, commissioning. Statutory roles: safetycoordination in design and execution, a responsibility rolein construction management
Parma, Italy
“It is critical to truly understand our clients’ needs, expectations, andwhat brings value to them. We are often aligned with them, but
really listening and understanding their goals allows us to tap intoJacobs’ extensive resources and deliver flawlessly.”
DonnaJacobs, Deputy Program Manager
Kingsport, Tennessee, USA
The long-term outlook for pharmaceuticals and
biotechnology, based on growing demand from emerging
markets, is positive. The short term presents more
challenges, including expiring patents, a scarce pipeline,
and cost pressures from generics. Clients are responding by
optimizing every link in the supply chain, including, of course,
production facilities. We can help clients maximize their
investment with our Facility of the Future model, which
balances initial costs, technology trends, and long-
term client needs to develop the most
cost-effective design for the entire life of the facility.
We’re also able to assist companies expanding
into emerging markets through our global delivery
model and staff on the ground in key regions.
Our experts provide turnkey services, from
consulting and conceptual studies, process
development and value engineering, to
construction management and
commissioning. We can even step in
with site services or act as owners’
representatives for clients seeking to
outsource non-core operations.
P H A R M A C E U T I C A L S & B I O T E C H N O L O G Y
Meeting Short-Term Challenges Anticipated to Result in Long-Term Growth
The future holds promising opportunities for the pharmaceuticals and biotechnology market, even though 2011, other
than experiencing a slight uptick in the biotechnology sector, was largely flat. While market pressures challenge clients to
stay competitive, long-term economic growth in regions such as India, China, Singapore, and Brazil is anticipated to
create new customers for drugs and medical devices. We help clients make the most of the changing marketplace with
expertise in developing specialized facilities that save money upfront while remaining flexible into the future.
Productos Roche, S.A. de C.V.
Granulation Line in Module 4
Basic and detail engineering
Toluca, Mexico State, Mexico
FOCUS ON SAFETY
Integrated teamwork and a focus on safety
played a key role in the project execution of
the Chiesi Research & Development Center
in Parma, Italy. The combined team of Chiesi
and Jacobs focused on meeting quality,
schedule, and cost targets, using a
sustainable design approach to minimize
energy consumption and waste production.
Our experience in construction
management allowed site activities to be
executed in 29 months, according to
schedule and with more than 740,000 work
hours without injuries. This project also
is the winner of Jacobs’ President’s
BeyondZero® Excellence Award in the
Construction category, for exemplifying
the best of our safety culture.
GlaxoSmithKline (GSK)
Alliance Contract, Glaxo Wellcome Manufacturing Pte. Ltd.
Engineering, procurement, construction management,and validation
Jurong, Singapore
www.jacobs.com 49
We are a relationship-based company. The relationships
between our clients and our employees are the heart
of our business. Worldwide, we work every day to really
listen and understand the needs of our clients, and to meet their project goals
and business objectives. Our relationship-based business model strengthens
our long-term client relationships, leads to successful projects,
and to repeat business. Our clients and employees describe the
benefits of their relationships best in their own words.
NourJacobs, Telecommunication Engineer Al-Khobar, Saudi Arabia
“We stay in constant contact with our clients to keepthem informed and updated on the progress of their projects.By being efficient, ethical, and transparent, we honor ourvalues as well as the values of our clients, and build arelationship of trust.”
50
“Based on their experience as industry leaders, as well as on a long-termcollaboration on our important projects, we awarded Jacobs the EPCM contractfor this strategic investment. Jacobs delivered on promise, embracing ourimpulse toward innovation, working with us to put our vision into practice, andfully meeting our requirements of a sustainable facility to be our ‘House ofResearch,’ designed to promote the exchange of ideas, scientific collaborations,and innovation.”
Andrea ChiesiR&D Planning and Control Director
CHIESI FARMACEUTICI
Success Through
The Relationship
“Relationships are built on trustand tested on performance. Weoperate in “task-force” environmentswhich enhance project teamcommunications and foster close
client and discipline relationships.Our project teams spanmultiple geographies, butfunction as a unified teamwhich practicestransparentinformation sharing.”
“Emphasizing safety every day, in allareas of my job, brings added value to our
clients. I promote BeyondZero® throughleading by example, caring for
employees and, by extension,their families.”
Anthony
Jacobs, Electrical Foreman
Texas City, Texas, USA
52 2011 Summary Annual Report
“[The Moomba Regenerative Gas Heater project] is a great example wheresafety has been improved, costs reduced, and productivity improvedthrough clever design.”
Andrew AntonyGeneral Manager, Engineering, Safety, and Environment
SANTOS LTD.
“As the primary engineering service provider for the Neenah Cold Spring Facility expansionproject, I was especially impressed by the teamwork and individual commitment shown by each ofthe Jacobs engineers throughout the project and especially during the technical checkout phaseof the project. Everyone worked toward the common goal of exceeding expectations and leavingnothing to chance. The results were spectacular — our project was safely completed ahead ofschedule, within budget, and production reached end of curve in record time.”
Thomas VanselowProject Manager
KIMBERLY-CLARK CORPORATION
Laura
Jacobs, Manager Civil-Structure-Architecture
Conshohocken,Pennsylvania, USA
“We achieve value for our clients byreally listening to what their issues are,thinking about it as a group, and
bringing all the Jacobs skills tohelp them solve theirproblems. In short, wedevelop a focused solutionusing our whole toolkit andpicking the most appropriatesupport for them.”
“We strive to understand our clients’specific goals and work to achievethem, no matter how challenging.
The clients receive additionalvalue from Jacobs’ toolsand practices, such asJacobsValue+SM andBeyondZero®.”
A.L.
Jacobs, Managerof Construction
Navi Mumbai, India
“Jacobs’ staff has worked extremely well with us as part of our integrated managementapproach to field operations. The Jacobs team has been a significant contributor to thesuccess of the project.”
Richard D. Thorpe, P.E.Chief Executive Officer
EXPOSITION METRO LINE CONSTRUCTION AUTHORITY
“The MAF team did an outstanding job of supporting the Capsule Parachute AssemblySystem (CPAS) Project in preparation for the September drop test by manufacturing theMid-Altitude Deployment System (MDS). You folks stepped up when we were in a bindand delivered on time and on cost, even when we came to you late in the game. The CPASteam was very impressed with the product and the capability at MAF, look forward tocontinue working with you folks. Thanks.”
Bruce W. SauserChief, Systems Architecture & Integration Office
JOHNSON SPACE CENTER, NASA
Selma
Jacobs, Vice President,Operations
Glasgow, Scotland,United Kingdom
52 2011 Summary Annual Report
B O A R D O F D I R E C T O R S
Thomas M.T. NilesDirector
Vice Chairman of UnitedStates Council forInternational Business;Former Ambassador toCanada
Linda Fayne LevinsonDirector
Former Partner ofGRP Partners
Craig L. MartinPresident& Chief Executive Officer
Noel G. WatsonChairman of the Board
Peter J. RobertsonDirector
Former Vice Chairman ofChevron Corp.
Linda K. JacobsDirector Emerita
John F. CoyneDirector
President & ChiefExecutive Officerof Western DigitalCorporation
Edward V. FritzkyDirector
Retired. FormerDirector of Amgen;Former President &Chairman of theBoard of ImmunexCorporation
Joseph R. BronsonDirector
Principal & ChiefExecutive Officer,TheBronsonGroup, LLC
Benjamin F. MontoyaDirector
Retired. FormerCommander of NavalFacilities EngineeringCommand
Robert C. Davidson, Jr.Director
Retired. FormerChairman & ChiefExecutive Officer ofSurface ProtectionIndustries, Inc.
John P. JumperDirector
Retired. FormerChief of Staff,U.S. Air Force
www.jacobs.com 53
54 2011 Summary Annual Report54 2011 Summary Annual Report54 2011 Summary Annual Report
L E A D E R S H I P
Jay Michael CoyleGroup Vice President,Middle East
Micheal T. AutreyGroup Vice President,Southern
Cora L. CarmodySenior Vice President,Information Technology
Terence D. HagenGroup Vice President,Technology
Thomas R. HammondExecutive Vice President,Operations
www.jacobs.com 55www.jacobs.com 55www.jacobs.com 55www.jacobs.com 55
Allyn B. TaylorGroup Vice President,India
Christopher E. NagelGroup Vice President,Eastern
Colin M. EdwardsSenior Vice President,Quality & Safety
Robert V. PragadaGroup Vice President,Northern
Robert G. NorfleetGroup Vice President,Technology
56 2011 Summary Annual Report
L E A D E R S H I P
56 2011 Summary Annual Report
William C. Markley, IIISenior Vice President,General Counsel
Dante V. CaravaggioSenior Vice President,Heavy Process Sales
J. Gary MandelExecutive Vice President,Operations
H. Thomas McDuffie, Jr.Group Vice President,Global Buildings NA
Rogers F. StarrPresident,Jacobs Technology, Inc.
www.jacobs.com 57www.jacobs.com 57
Thomas J. QuinnGroup Vice President,Asia-Pacific
Patricia H. SummersSenior Vice President,Global Human Resources
George A. Kunberger, Jr. Executive Vice President,Global Sales & Marketing
Philip J. StassiGroup Vice President,Global Field Services
John W. Prosser, Jr.Executive Vice President,Finance, Administration& Treasurer
58 2011 Summary Annual Report
L E A D E R S H I P
58 2011 Summary Annual Report
William J. BirkhoferSenior Vice President,Public Sector Sales
Gregory J. LandryExecutive Vice President,Operations
Andrew F. KremerGroup Vice President,Americas Mining& Minerals
John McLachlanSenior Vice President,Strategy & Acquisitions
E.J. (Chip) Mitchell, Jr.Group Vice President,Western
www.jacobs.com 59www.jacobs.com 59
Kevin J. McMahonGroup Vice President,North AmericanInfrastructure
Robert C. MathaGroup Vice President,Mainland Europe
Nazim G. ThawerbhoySenior Vice President& Controller
Robert A. IrvinGroup Vice President,U.K. Process
Robert S. DuffGroup Vice President,U.K. Infrastructure
60 2011 Summary Annual Report
FORWARD-LOOKING STATEMENTS AND OTHER SAFE HARBOR APPLICATIONS
Statements included in this 2011 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 2011 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 2011 Summary Annual Report.
Readers of this 2011 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 61
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 2011 Annual Report on Form 10-K filed with
the Securities and Exchange Commission.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON CONDENSEDFINANCIAL STATEMENTS
The Board of Directors and Stockholders of 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 at September 30, 2011 and October 1, 2010 and the related
consolidated statements of earnings, comprehensive income, stockholders’ equity, and
cash flows for each of the three fiscal years in the period ended September 30, 2011 (not
presented separately herein) and in our report dated November 21, 2011, 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 also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the effectiveness of Jacobs Engineering
Group Inc. and subsidiaries’ internal control over financial reporting as of September
30, 2011, 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 21, 2011 (not presented separately herein) expressed an
unqualified opinion thereon.
Los Angeles, California
November 21, 2011
62 2011 Summary Annual Report
Dollars in thousands, except per share information
F I N A N C I A L D A TA
2011 2010 2009 2008
Results of Operations:
Revenues $ 10,381,664 $ 9,915,517 $ 11,467,376 $ 11,252,159
Net earnings attributable to Jacobs 331,029 245,974 399,854 420,742
Financial Position:
Current ratio 1.53 to 1 2.23 to 1 2.17 to 1 1.74 to 1
Working capital $ 1,099,308 $ 1,527,589 $ 1,522,548 $ 1,173,237
Current assets 3,157,353 2,767,042 2,818,449 2,750,234
Total assets 6,049,428 4,683,917 4,428,614 4,278,238
Long-term debt 2,042 509 737 55,675
Total Jacobs stockholders’ equity 3,312,988 2,859,048 2,625,913 2,245,147
Return on average equity 10.73% 8.97% 16.42% 20.58%
Backlog:
Technical professional services $ 9,100,100 $ 7,588,900 $ 8,209,300 $ 8,085,200
Total 14,289,800 13,202,000 15,219,400 16,696,600
Per Share Information:
Basic EPS $ 2.63 $ 1.98 $ 3.26 $ 3.47
Diluted EPS 2.60 1.96 3.21 3.38
Stockholders’ equity 25.93 22.71 21.14 18.30
Average Number of Shares of Common
Stock and Common Stock
Equivalents Outstanding (Diluted) 127,235 125,790 124,534 124,357
Common Shares Outstanding
At Year End 127,785 125,909 124,230 122,701
Net earnings for fiscal 2010 include a non-recurring after-tax charge of $60.3 million, or $0.48 per diluted share.
2011 20 2007 2006 2005 2004 2003 2002
R $ 8,473,970 $ 7,421,270 $ 5,635,001 $ 4,594,235 $ 4,615,601 $ 4,555,661
N 287,130 196,883 131,608 115,574 112,645 97,475
C 1.78 to 1 1.75 to 1 1.70 to 1 1.58 to 1 1.59 to 1 1.32 to 1
W $ 1,001,644 $ 776,766 $ 552,336 $ 397,599 $ 358,683 $ 234,486
C 2,278,078 1,817,961 1,337,431 1,083,513 970,097 974,903
T 3,389,421 2,853,884 2,378,859 2,093,819 1,688,096 1,688,093
L 40,450 77,673 89,632 78,758 17,806 85,732
T 1,843,662 1,423,214 1,165,780 1,027,802 859,669 703,722
R 17.58% 15.21% 12.00% 12.25% 14.41% 14.92%
B
T $ 6,188,500 $ 5,153,400 $ 4,329,000 $ 3,989,000 $ 3,383,200 $ 3,045,600
T 13,585,800 9,777,700 8,643,000 7,452,500 7,041,000 6,674,200
B $ 2.42 $ 1.69 $ 1.15 $ 1.03 $ 1.02 $ 0.90
D 2.35 1.64 1.12 1.01 1.00 0.88
S 15.34 12.06 10.03 9.06 7.70 6.42
S
E 122,226 120,373 117,379 114,867 112,784 110,792
A 120,222 117,992 116,260 113,397 111,672 109,531
www.jacobs.com 63
64 2011 Summary Annual Report
08 09 1002 03 04 05 06 07
$4,555,661
$4,615,601
$4,594,235
$5,635,001
$7,421,270
$8,473,970
$11,252,159
$9,915,517
$11,467,376
11
$10,381,664
0802 03 04 05 06 07 09 10
$7,041,000
$7,452,500$6,674,200
$16,696,600
$15,219,400$13,585,800
$13,202,000
11
$14,289,800
$9,777,700
$8,643,000
0802 03 04 05 06 07 09 10
$1.64
$2.35
$3.38
$1.96
11
$2.60
$3.21
$1.00 $1.12 $0.88 $1.01
0802 03 04 05 06 07
14.92%14.41%
12.25%12.00%
15.21%
17.58%
8.97%
20.58%
16.42%
09 10
10.73%
11
REVENUESin thousands
TOTAL BACKLOGin thousands
EARNINGS PER SHARE (DILUTED) RETURN ON AVERAGE EQUITY
F I N A N C I A L D A TA
www.jacobs.com 65
2011 2010 September 30 October 1
Assets
Current Assets:
Cash and cash equivalents $ 905,633 $ 938,842
Receivables 2,077,494 1,659,844
Deferred income taxes 110,680 117,698
Prepaid expenses and other current assets 63,546 50,658
Total current assets 3,157,353 2,767,042
Property, Equipment and Improvements, Net 284,633 215,032
Other Noncurrent Assets:
Goodwill 1,745,708 1,118,889
Miscellaneous 861,734 582,954
Total other noncurrent assets 2,607,442 1,701,843
$ 6,049,428 $ 4,683,917
Liabilities and Stockholders’ Equity
Current Liabilities:
Notes payable $ 566,031 $ 79,399
Accounts payable 351,299 303,877
Accrued liabilities 837,217 661,278
Billings in excess of costs 276,739 194,899
Income taxes payable 26,759 —
Total current liabilities 2,058,045 1,239,453
Long-term Debt 2,042 509
Other Deferred Liabilities 665,956 579,027
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—127,784,884
shares and 125,909,073 shares, respectively 127,785 125,909
Additional paid-in capital 858,460 767,514
Retained earnings 2,564,281 2,251,366
Accumulated other comprehensive loss (237,538) (285,741)
Total Jacobs stockholders’ equity 3,312,988 2,859,048
Noncontrolling Interests 10,397 5,880
Total Group stockholders’ equity 3,323,385 2,864,928
$ 6,049,428 $ 4,683,917
CONSOLIDATED BALANCE SHEETS
In thousands, except share information
66 2011 Summary Annual Report
F I N A N C I A L D A TA
2011 2010 2009 September 30 October 1 October 2
Revenues $ 10,381,664 $ 9,915,517 $ 11,467,376
Costs and Expenses:
Direct costs of contracts (8,822,171) (8,582,912) (9,906,493)
Selling, general and administrative expenses (1,040,575) (932,522) (940,310)
Operating Pro]t 518,918 400,083 620,573
Other Income (Expense):
Interest income 4,917 4,791 13,145
Interest expense (8,799) (9,874) (2,916)
Miscellaneous income (expense), net 1,625 (3,066) (6,670)
Total other income (expense), net (2,257) (8,149) 3,559
Earnings Before Taxes 516,661 391,934 624,132
Income Tax Expense (181,440) (145,647) (224,919)
Net Earnings of the Group 335,221 246,287 399,213
Net (Earnings) Loss Attributable to Noncontrolling Interests (4,192) (313) 641
Net Earnings Attributable to Jacobs $ 331,029 $ 245,974 $ 399,854
Net Earnings Per Share:
Basic $ 2.63 $ 1.98 $ 3.26
Diluted $ 2.60 $ 1.96 $ 3.21
CONSOLIDATED STATEMENTS OF EARNINGS
In thousands, except share information
Net earnings for fiscal 2010 include a non-recurring after-tax charge of $60.3 million, or $0.48 per diluted share.
www.jacobs.com 67
2011 2010* 2009 September 30 October 1 October 2
Cash Flows from Operating Activities:
Net earnings attributable to the group $ 335,221 $ 246,287 $ 399,213
Depreciation and amortization 95,370 88,495 86,342
Write-off of the SIVOM receivable — 25,894 —
Purchase accounting gain (3,716) — —
Stock based compensation, net of excess tax bene]ts 22,247 21,477 20,571
Equity in earnings of investees, net of dividends (8,729) (1,759) (1,808)
Changes in working capital (183,405) (160,908) 27,360
Other, net (20,498) 1,619 (19)
Net cash provided by operating activities 236,490 221,105 531,659
Cash Flows from Investing Activities:
Additions to property and equipment, net of disposals (94,889) (34,696) (53,258)
Acquisitions of businesses, net of cash acquired (711,421) (259,492) (23,329)
Other, net 4,474 (104,298) (16,519)
Net cash used for investing activities (801,836) (398,486) (93,106)
Cash Flows from Financing Activities:
Net change in long-term borrowings 586,492 (217) (45,963)
Net change in short-term borrowings (82,339) 58,090 15,933
Proceeds from issuance of common stock 45,943 36,209 43,361
Other, net 6,837 1,548 (52,334)
Net cash provided by (used for) ]nancing activities 556,933 95,630 (39,003)
Effect of Exchange Rate Changes (24,796) (13,026) 29,649
Increase (Decrease) in Cash and Cash Equivalents (33,209) (94,777) 429,199
Cash and Cash Equivalents at Beginning of Period 938,842 1,033,619 604,420
Cash and Cash Equivalents at End of Period $ 905,633 $ 938,842 $ 1,033,619
Other Cash Flow Information:
Interest paid $ 7,800 $ 11,700 $ 1,700
Income taxes paid $ 139,200 $ 170,800 $ 255,500
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
In thousands
* Restated to reflect the effect of the write-off of a $25.9 million claim receivable related to the SIVOM judgment previously reported in cash flows from investing
activities in cash flows for operating activities.
© Copyright 2012 Jacobs Engineering Group Inc. All rights reserved.
Jacobs®, BeyondZero®, the BeyondZero® logo, JacobsValue+SM, JSTEPS®, and JVEPsSM
are trademarks of Jacobs Engineering Group Inc.
20048 CP 01/12
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
+ 1.626.578.3500
Image Credits
Pages 8-9, John Connor Press Associates Ltd.,
Andy James, Adrian Kerry, Leigh Quinnell,
and South East Water
Page 9, copyright Igor Terekhov
Pages 16-17, Daniele Domenicali, photographer,
with the exception of the green-roof image on the
right-hand foldout
ON THE COVER
From back to front, left to right
Peel Media LtdMediaCityUK
Salford Quays, England, United Kingdom
Louisville Water CompanyRiverbank Filtration Project
Louisville, Kentucky, USA
Exposition Construction Authority Exposition Light Rail Line, Phase 1
Los Angeles, California, USA
ExxonMobilBS2B Electrical Infrastructure Project
Baton Rouge, Louisiana, USA
Dow CorningThird Asian Pillar Project Phase II
Zhangjiagang, People’s Republic of China
Image courtesy of Dow Corning
Thermal Energy Corporation (TECO)Master Plan Implementation Program
Houston, Texas, USA
DieselCorporate Headquarters
Vicenza, Italy
NASAAlpha Magnetic Spectrometer
Houston, Texas, USA
Leeds City CouncilNew Headquarters for Northern Ballet and
Phoenix Dance Theatre
Leeds, England, United Kingdom
As part of Jacobs’ sustainability initiatives, this
document is printed on paper that is FSC Certi]ed,
Mixed Sources; contains 20 percent post consumer
recovered ]ber; and was produced using electricity
generated from renewable resources, such as wind,
hydro and biogas. All inks are soy-based.
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