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What changed in TETRA TECH INC's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of TETRA TECH INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+270 added−293 removedSource: 10-K (2022-11-25) vs 10-K (2021-11-24)

Top changes in TETRA TECH INC's 2023 10-K

270 paragraphs added · 293 removed · 211 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

68 edited+13 added−20 removed111 unchanged
Biggest changeOur international development services include supporting donor agencies to develop safe and reliable water supplies and sanitation services, support the eradication of poverty, improve livelihoods, promote democracy and increase economic growth; planning, designing, implementing, researching, and monitoring projects in the areas of climate change, agriculture and rural development, governance and institutional development, natural resources and the environment, infrastructure, economic growth, energy, rule of law and justice systems, land tenure and property rights, and training and consulting for public-private partnerships; and building capacity and strengthening institutions in areas such as global health, energy sector reform, utility management, education, food security, and local governance.
Biggest changeKey areas of focus include climate change, agriculture and rural development, governance and institutional development, natural resources and the environment, infrastructure, economic growth, energy, rule of law and justice systems, land tenure and property rights and training and consulting for public-private partnerships.
GSG also leads our support for development agencies worldwide, especially in the United States, United Kingdom, and Australia. GSG provides consulting and engineering services for a broad range of water, environment, and infrastructure-related needs primarily for U.S. government clients.
GSG also leads our support for development agencies worldwide, especially in the United States, the United Kingdom and Australia. GSG provides consulting and engineering services for a broad range of water, environment and infrastructure-related needs primarily for U.S. government clients.
We provide smart water infrastructure solutions that integrate water modeling, instrumentation and controls, and real-time controls to create flexible water systems that respond to changing conditions, optimize use of existing infrastructure, and provide clients with the ability to more efficiently monitor and manage their water infrastructure.
We provide smart water infrastructure solutions that integrate water modeling, instrumentation and controls and real-time controls to create flexible water systems that respond to changing conditions, optimize use of existing infrastructure and provide clients with the ability to monitor and manage their water infrastructure more efficiently.
For developers and owners of renewable energy resources such as solar grid and off-grid, on-shore and off-shore wind, biogas and biomass, tidal, and hydropower, and conventional power generation facilities, micro-grid and battery or alternative storage facilities, as well as transmission and distribution assets, our services include environmental, electrical, mechanical and civil engineering, procurement, operations and maintenance, and regulatory support for all project phases.
For developers and owners of renewable energy resources such as solar grid and off-grid, on-shore and off-shore wind, biogas and biomass, tidal, hydropower, conventional power generation facilities, micro-grid and battery or alternative storage facilities, as well as transmission and distribution assets, our services include environmental, electrical, mechanical and civil engineering, procurement, operations and maintenance and regulatory support for all project phases.
The DCAA reviews all types of U.S. federal government proposals, including those of award, administration, modification, and re-pricing. The DCAA considers our cost accounting system, estimating methods and procedures, and 8 specific proposal requirements. Operational audits are also performed by the DCAA. A review of our operations at every major organizational level is conducted during the proposal review period.
The DCAA reviews all types of U.S. federal government proposals, including those of award, administration, modification and re-pricing. The DCAA considers our cost accounting system, estimating methods and procedures and specific 8 proposal requirements. Operational audits are also performed by the DCAA. A review of our operations at every major organizational level is conducted during the proposal review period.
These rules and regulations: • require certification and disclosure of all cost and pricing data in connection with the contract negotiations under certain contract types; 11 • impose accounting rules that define allowable and unallowable costs and otherwise govern our right to reimbursement under certain cost-based government contracts; and • restrict the use and dissemination of information classified for national security purposes and the exportation of certain products and technical data.
These rules and regulations: • require certification and disclosure of all cost and pricing data in connection with the contract negotiations under certain contract types; • impose accounting rules that define allowable and unallowable costs and otherwise govern our right to reimbursement under certain cost-based government contracts; and 11 • restrict the use and dissemination of information classified for national security purposes and the exportation of certain products and technical data.
Argus has also been responsible for managing multidisciplinary contracts and projects in support of the U.S. federal government (i.e., Navy, the U.S. Army Corps of Engineers ("USACE"), and the EPA), state and municipal agencies, and private clients nationwide.
Argus has also been responsible for managing multidisciplinary contracts and projects in support of the U.S. federal government (i.e., U.S. Navy, the U.S. Army Corps of Engineers ("USACE") and the EPA), state and municipal agencies and private clients nationwide.
GSG provides a wide range of consulting and engineering services for solid waste management, including landfill design and management and recycling facility design, throughout the United States; providing design, project management, and 5 maintenance services to manage solid and hazardous waste, for environmental, wastewater, energy, containment, mining, utilities, aquaculture, and other industrial clients; as well as innovative renewable energy projects such as solar energy-generating landfill caps; and providing full-service solutions for gas-to-energy facilities to efficiently use landfill methane gas.
GSG provides a wide range of consulting and engineering services for solid waste management, including landfill design and management, and recycling facility design throughout the United States; providing design, project management and maintenance services to manage solid and hazardous waste, for environmental, wastewater, energy, containment, mining, utilities, aquaculture and other industrial clients; as well as innovative renewable energy projects such as solar energy-generating landfill caps; and providing full-service solutions for gas-to-energy facilities to efficiently use landfill methane gas.
CIG provides infrastructure design services in extreme and remote areas by using specialized techniques that are adapted to local resources, while minimizing environmental impacts, and considering potential climate change impacts. These 6 include providing consulting, geotechnical, and design services to owners of transportation, natural resources, energy and community infrastructure in areas of permafrost or extreme climate regions.
CIG provides infrastructure design services in extreme and remote areas by using specialized techniques that are adapted to local resources, while minimizing environmental impacts, and considering potential climate change impacts. These include providing consulting, geotechnical and design services to owners of transportation, natural resources, energy and community infrastructure in areas of permafrost or extreme climate regions.
As part of Tetra Tech's commitment to a culture of inclusion, our Employee Resource Group ("ERG") Program broadens and enhances company-wide interaction opportunities for our employees. Our ERG is open to all and involves activities for both employees whose background is the focus of the ERG and those who are supportive of the group (also known as allies).
As part of Tetra Tech's commitment to a culture of inclusion, our Employee Resource Group ("ERG") Program broadens and enhances company-wide interaction opportunities for our employees. Tetra Tech's ERG is open to all associates and involves activities for both employees whose background is the focus of the ERG and those who are supportive of the group (also known as allies).
We actively share information, ideas, and resources across our global operations through our network structure, guided subject matter teams, and project team building. Our annual Tech 1000 event engages Tetra Tech experts world-wide to solve client challenges and identify the best ideas for further development.
We actively share information, ideas and resources across our global operations through our network structure, guided subject matter teams and project team building. Our Tech 1000 event engages Tetra Tech experts world-wide to solve client challenges and identify the best ideas for further development.
We perform a broad spectrum of consulting, engineering, and technical services across the water, environment, sustainable infrastructure, renewable energy, and international development markets. Our client base includes U.S. federal 10 government agencies such as USAID, the DoD, the U.S. Department of State, the U.S. Department of Energy ("DOE"), the U.S.
We perform a broad spectrum of consulting, engineering and technical services across the water, environment, sustainable infrastructure, renewable energy and international development markets. Our client base includes U.S. federal government agencies such as USAID, the DoD, the U.S. Department of State, the U.S. Department of Energy ("DOE"), the U.S.
We have a full suite of proprietary software tools and procedures that support our disaster response, planning, and management support services. These tools and procedures address disaster management and community resilience data management needs, including information technology systems, portals, dashboards, data management, data analytics, and statistical analysis.
We have a full suite of proprietary software tools and procedures that support our disaster response, planning and management support services. These tools and procedures address disaster management and 5 community resilience data management needs, including information technology systems, portals, dashboards, data management, data analytics and statistical analysis.
The primary GSG markets include water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and a broad range of civil infrastructure master planning and engineering design for facilities, transportation, and local development projects.
The primary GSG markets include water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management and a broad range of civil infrastructure master planning and resilient engineering design for facilities, transportation and local development projects.
Environmental Protection Agency ("EPA"), and the FAA; U.S. state and local government agencies; government and commercial clients in Canada, Australia, and the United Kingdom; the U.S. commercial sector, which consists primarily of large industrial companies and utilities; and our international commercial clients.
Environmental Protection Agency ("EPA") and the FAA; U.S. state and local government agencies; government and commercial clients in Canada, Australia and the United Kingdom; the U.S. commercial sector, which consists primarily of large 10 industrial companies and utilities; and our international commercial clients.
Opportunity means new technical challenges that provide advancement within our company, encourage an inclusive and diverse workforce, and ensure a safe workplace. 3 We have a strong project management culture that enables us to deliver on more than 70,000 projects in a fiscal year. W e maintain a strong emphasis on project management at all levels of the organization.
Opportunity means new technical challenges that provide advancement within our company, encourage an inclusive and diverse workforce and ensure a safe workplace. 3 We have a strong project management culture that enables us to deliver on more than 80,000 projects in a fiscal year. W e maintain a strong emphasis on project management at all levels of the organization.
However, partially or completely uninsured claims, if successful and of significant magnitude, could have a material adverse effect on our business. Human Capital Management Employees. At fiscal 2021 year-end, we had approximate ly 21,000 staff worldwide. A large percentage of our employees have technical and professional backgrounds and undergraduate and/or advanced degrees, including the employees of recently acquired companies.
However, partially or completely uninsured claims, if successful and of significant magnitude, could have a material adverse effect on our business. Human Capital Management Employees. At fiscal 2022 year-end, we had approximate ly 21,000 staff worldwide. A large percentage of our employees have technical and professional backgrounds and undergraduate and/or advanced degrees, including the employees of recently acquired companies.
Our strategic growth plans are augmented by our selective investment in acquisitions aligned with our business. Acquisitions enhance plans to add new technologies, broaden our service offerings, add contract capacity and expand our geographic presence. Our long-established experience in identifying and integrating acquisitions strengthens our ability to integrate and rapidly leverage the resources of the acquired companies post-acquisition.
Our strategic growth plans are augmented by our selective investment in acquisitions aligned with our business. Acquisitions advance plans to add new technologies, broaden our service offerings, add contract capacity and expand our geographic presence. Our long-established experience in identifying and integrating acquisitions strengthens our ability to integrate and rapidly leverage the resources of the acquired companies post-acquisition.
For more information on risks related to our business, reportable segments and geographic regions, including risks related to foreign operations, see Item 1A, “Risk Factors” of this report. Government Services Group GSG provides consulting and engineering services primarily to U.S. government clients (federal, state and local) and development agencies worldwide.
For more information on risks related to our business, reportable segments and geographic regions, including risks related to foreign operations, see Item 1A, “Risk Factors” of this report. Government Services Group GSG provides high-end consulting and engineering services primarily to U.S. government clients (federal, state and local) and development agencies worldwide.
In supporting our clients, we seek to add value and provide long-term sustainable consulting, engineering and tec hnology solutions. By combining ingenuity and practical experience, we have helped to advance sustainability by managing water, protecting the environment, providing renewable energy, and engineering green solutions for our cities and communities.
In supporting our clients, we seek to add value and provide long-term sustainable consulting, engineering and tec hnology solutions. By combining ingenuity and practical experience, we have helped to advance sustainability by managing water, protecting the environment, providing renewable energy, restoring ecosystems and engineering green solutions for our cities and communities.
These reportable segments allow us to capitalize on our growing market opportunities and enhance the development of high-end consulting and technical solutions to meet our growing client demand. We continued to report the historical results of the wind-down of our non-core construction activities in the Remediation and Construction Management ("RCM") reportable segment.
These reportable segments allow us to capitalize on our growing market opportunities and enhance the development of high-end consulting and technical solutions to meet our growing client demand. We continue to report the historical results of the wind-down of our non-core construction activities in the Remediation and Construction Management ("RCM") reportable segment.
Our current efforts are focused on these primary areas: 12 • Equal employment opportunity. Tetra Tech ensures that our practices and processes attract a diverse range of candidate, and that candidates are recruited, hired, assigned, developed, and promoted based on merit and their alignment to our values. • Learning and development opportunities.
Our current efforts are focused on these primary areas: • Equal employment opportunity. Tetra Tech ensures that our practices and processes attract a diverse range of candidates, and those candidates are recruited, hired, assigned, developed and promoted based on merit and their alignment to our values. 12 • Learning and development opportunities.
We provide high-end design of sustainable energy, water, and GHG efficient solutions including civil, electrical, mechanical, structural, and hydraulic engineering for buildings and surrounding developments. We provide high-end services in addressing indoor health and associated assessment, consulting, and retrofits of buildings to address indoor air quality and safety.
We provide high-end design of sustainable energy, water and GHG decarbonization solutions including civil, electrical, mechanical, structural and hydraulic engineering for buildings and surrounding developments. We provide high-end services in addressing indoor health and associated assessment, consulting and retrofits of buildings to address indoor air quality and safety.
Carter 54 Senior Vice President, Corporate Controller and Chief Accounting Officer Mr. Carter joined us as Vice President, Corporate Controller and Chief Accounting Officer in June 2011 and was appointed Senior Vice President in October 2012. Previously, Mr. Carter served in finance and auditing positions in private industry and with Ernst & Young LLP. Mr.
Carter 55 Senior Vice President, Corporate Controller and Chief Accounting Officer Mr. Carter joined us as Vice President, Corporate Controller and Chief Accounting Officer in June 2011 and was appointed Senior Vice President in October 2012. Previously, Mr. Carter served in finance and auditing positions in private industry and with Ernst & Young LLP. Mr.
Batrack 63 Chairman and Chief Executive Officer Mr. Batrack joined our predecessor in 1980 and was named Chairman in January 2008. He has served as our Chief Executive Officer and a director since November 2005, and as our President from October 2008 to September 2019. Mr.
Batrack 64 Chairman and Chief Executive Officer Mr. Batrack joined our predecessor in 1980 and was named Chairman in January 2008. He has served as our Chief Executive Officer and a director since November 2005, and as our President from October 2008 to September 2019. Mr.
CIG's international services, especially in Canada and Asia-Pacific, include high-end analytical, engineering, architecture, geotechnical, and project management services for infrastructure projects, including rail and roadway monitoring and asset management services, collection of condition data, optimization of upgrades and long-term planning for expansion; multi-modal design services for commuter railway stations, airport expansions, bridges and major highways, and ports and harbors; and designing resilient solutions to repair, replace, and upgrade older transportation infrastructure.
CIG's international services, especially in Canada, the United Kingdom, and Asia Pacific, include high-end analytical, engineering, architecture, geotechnical and project management services for infrastructure projects, including rail and roadway monitoring and asset management services, collection of condition data, optimization of upgrades and long-term planning for 6 expansion; multi-modal design services for commuter railway stations, airport expansions, bridges and major highways and ports and harbors; and designing resilient solutions to repair, replace and upgrade older transportation infrastructure.
These global networks build on and coordinate with the many local networks that are already active throughout our operations and include groups focused on the experiences of Black, Latino, Pan-Asian, Women, Veterans, and LGBTQIA+ employees. Professional Development. Tetra Tech invests in the professional development of our associates.
These global networks build on and coordinate with the many local networks that are already active throughout our operations and include groups focused on the experiences of Black, Latino, Pan-Asian, Women, Veterans, Disabled and LGBTQIA+ employees and emerging professionals. Professional Development. Tetra Tech invests in the professional development of our associates.
Participants from across our markets form teams to focus on client needs, receive briefings on our Tetra Tech Delta technologies from their peers, and hone their skills in designing strategies and pitching client solutions. • Project Excellence Program. Tetra Tech develops Project Managers who are world class in their abilities and performance.
Participants from across our markets form teams to focus on client needs, receive briefings on our Tetra Tech Delta technologies from their peers, and hone their skills in designing strategies and pitching client solutions. • Project Management Training Program. Tetra Tech develops Project Managers who are world class in their abilities and performance.
He served as our Senior Vice President and Corporate Controller from January 2004 to March 2011. Mr. Burdick joined us in April 2003 as Vice President, Management Audit. Previously, Mr. Burdick served in senior financial and executive positions with Aura Systems, Inc., TRW Ventures, and Ernst & Young LLP. Mr.
He served as our Senior Vice President, Corporate Controller and Chief Accounting Officer from January 2004 to March 2011. Mr. Burdick joined us in April 2003 as Vice President, Management Audit. Previously, Mr. Burdick served in senior financial and executive positions with Aura Systems, Inc., TRW Ventures, and Ernst & Young LLP. Mr.
No single client, except for U.S. federal government clients, accounted for more than 10% of our revenue in fiscal 2021. Contracts Our services are performed under three principal types of contracts with our clients: fixed-price, time-and-materials, and cost-plus.
No single client, except for the U.S. federal government clients, accounted for more than 10% of our revenue in fiscal 2022. Contracts Our services are performed under three principal types of contracts with our clients: fixed-price, time-and-materials and cost-plus.
By offering our associates meaningful work and career development, Tetra Tech is well positioned to continue its growth through recruitment, development, and retention of the best talent in the industry. 13 Executive Officers of the Registrant The following table shows the name, age and position of each of our executive officers at November 24, 2021: Name Age Position Dan L.
By offering our associates meaningful work and career development, Tetra Tech is well positioned to continue its growth through recruitment, development and retention of the best talent in the industry. 13 Executive Officers of the Registrant The following table shows the name, age and position of each of our executive officers at November 22, 2022: Name Age Position Dan L.
The following table presents the percentage of our revenue by contract type: Fiscal Year Contract Type 2021 2020 2019 Fixed-price 37.1% 36.0% 33.7% Time-and-materials 46.4 46.5 48.6 Cost-plus 16.5 17.5 17.7 100.0% 100.0% 100.0% Under a fixed-price contract, clients agree to pay a specified price for our performance of the entire contract or a specified portion of the contract.
The following table presents the percentage of our revenue by contract type: Fiscal Year Contract Type 2022 2021 2020 Fixed-price 37.6% 37.1% 36.0% Time-and-materials 46.7 46.4 46.5 Cost-plus 15.7 16.5 17.5 100.0% 100.0% 100.0% Under a fixed-price contract, clients agree to pay a specified price for our performance of the entire contract or a specified portion of the contract.
In fiscal 2021, we worked on over 70,000 projects, in more than 100 countries on seven continents, with a talent force of 21,000 associates. We are Leading with Science® throughout our operations, with domain experts across multiple disciplines supported by our advanced analytics, artificial intelligence ("AI"), machine learning, and digital technology solutions.
In fiscal 2022, we worked on over 80,000 projects, in more than 100 countries on all seven continents, with a talent force of 21,000 associates. We are Leading with Science® throughout our operations, with domain experts across multiple disciplines supported by our advanced analytics, artificial intelligence ("AI"), machine learning and digital technology solutions.
The Department of Defense ("DoD") accounted fo r 11.2%, 9.2% and 7.9% of our revenue in fiscal 2021, 2020 and 2019, respectively. We typically support multiple programs within a single U.S. federal government agency, both domestically and internationally. We also assist U.S. state and local government clients in various jurisdictions across the United States.
The Department of Defense ("DoD") accounted for 9.7%, 11.2% and 9.2% of our revenue in fiscal 2022, 2021 and 2020, respectively. We typically support multiple programs within a single U.S. federal government agency, both domestically and internationally. We also assist U.S. state and local government clients in various jurisdictions across the United States.
Essential to the effective development of business is each staff member's access to all of our service offerings through our internal Tetra Tech Delta and geographic networks. Our strong internal networking programs help our professional staff members to pursue new opportunities for both existing and new clients.
Effective development of business is facilitated by each staff member's access to all of our service offerings through our internal Tetra Tech Delta and geographic networks. Our strong internal networking programs help our professional staff members to pursue new opportunities for both existing and new clients.
For utilities and governmental regulatory agencies, our services include policy and regulatory development, utility management, performance improvement, asset management and evaluation, and transaction support services.
For utilities and governmental regulatory agencies, our services include policy and regulatory development, utility management, performance improvement and asset management and evaluation.
Argus is a chemical engineer with 36 years of experience, including 28 years with us in operational leadership, program and project management, and quality assurance for projects encompassing a broad spectrum of environmental, engineering, information technology, and disaster management services. Mr.
Argus is a chemical engineer with 37 years of experience, including 29 years with us in operational leadership, program and project management and quality assurance for projects encompassing a broad spectrum of environmental, engineering, information technology and disaster management services. Mr.
ENR also ranked Tetra Tech in the top 10 in numerous categories, including dams and reservoirs, solid waste, environmental science, chemical and soil remediation, green building design, hazardous waste, solar power, and site assessment and compliance.
ENR also ranked Tetra Tech in the top 10 in numerous categories, including dams and reservoirs, marine and port facilities, wind power, solar power, solid waste, environmental science, chemical and soil remediation, green building design, hazardous waste and site assessment and compliance.
Backlog We include in our backlog only those contracts for which funding has been provided and work authorization has been received. We estimate that approximately two-thirds o f ou r backlog at the end of fiscal 2021 will be recognized as revenue in fiscal 2022, as work is being performed.
Backlog We include in our backlog only those contracts for which funding has been provided and work authorization has been received. We estimate that approximately two-thirds of our backlog at the end of fiscal 2022 will be recognized as revenue in fiscal 2023, as work is being performed.
The scope of his technical experience includes planning and directing environmental programs, developing data acquisition, management and analytics solutions, fund research and development support for innovative environmental technologies and waste treatment systems, municipal resiliency, and sustainability programs. Mr. Argus holds a B.S. in Chemical Engineering from California State University, Long Beach. William R.
The scope of his technical experience includes planning and directing environmental programs, developing data acquisition, management and analytics solutions, fund research and development support for innovative environmental technologies and waste treatment systems, municipal resiliency and sustainability programs. Mr. Argus holds a B.S. in Chemical Engineering from California State University, Long Beach. 15 Name Age Position Brian N.
Engineering News-Record ("ENR"), the engineering industry's leading magazine, has ranked Tetra Tech #1 in Water for 18 years in a row. In 2021, we were also ranked #1 in environmental management, hydro plants, water treatment/desalination, water treatment/supply, and wind power.
Engineering News-Record ("ENR"), the engineering industry's leading magazine, has ranked Tetra Tech #1 in Water for 19 years in a row. In 2022, we were also ranked #1 in environmental management, hydro plants, water treatment/desalination and water treatment/supply.
(2) Includes revenue generated from foreign operations, primarily in Canada, Australia, the United Kingdom, and revenue generated from non-U.S. clients. 7 U.S. federal government agencies are significant clients. The U.S. Agency for International Development ("USAID") accounted fo r 11.7%, 12.2% and 12.4% of our revenue in fiscal 2021, 2020 and 2019, respectively.
(2) Includes revenue generated from foreign operations, primarily in Canada, Australia, the United Kingdom and revenue generated from non-U.S. clients. 7 U.S. federal government agencies are significant clients. The U.S. Agency for International Development ("USAID") accounted f or 11.0%, 11.7% and 12.2% of our revenue in fiscal 2022, 2021 and 2020, respectively.
The following table presents the percentage of our revenue by client sector: Fiscal Year Client Sector 2021 2020 2019 U.S. state and local government 16.7% 14.7% 18.9% U.S. federal government (1) 33.6 33.2 30.3 U.S. commercial 19.9 22.5 23.1 International (2) 29.8 29.6 27.7 100.0% 100.0% 100.0% (1) Includes revenue generated under U.S. federal government contracts performed outside the United States.
The following table presents the percentage of our revenue by client sector: Fiscal Year Client Sector 2022 2021 2020 U.S. federal government (1) 30.4% 33.6% 33.2% U.S. state and local government 17.2 16.7 14.7 U.S. commercial 21.4 19.9 22.5 International (2) 31.0 29.8 29.6 100.0% 100.0% 100.0% (1) Includes revenue generated under U.S. federal government contracts performed outside the United States.
He holds B.S. and M.S. degrees in Civil Engineering from Brigham Young University and a M.S. in Management from Rensselaer Polytechnic Institute. Roger R. Argus 60 Senior Vice President, President of GSG and the U.S. Government Division of GSG Mr.
Amidon is a registered Professional Engineer. He holds B.S. and M.S. degrees in Civil Engineering from Brigham Young University and a M.S. in Management from Rensselaer Polytechnic Institute. Roger R. Argus 61 Senior Vice President, President of GSG and the U.S. Government Division of GSG Mr.
Our Government Services Group ("GSG") reportable segment primarily includes activities with U.S. government clients (federal, state and local) and all activities with development agencies worldwide. Our Commercial/International Services Group ("CIG") reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.
Reportable Segments We manage our operations under two reportable segments. Our Government Services Group ("GSG") reportable segment primarily includes activities with U.S. government clients (federal, state and local) and all activities with development agencies worldwide. Our Commercial/International Services Group ("CIG") reportable segment primarily includes activities with U.S. commercial clients and international clients other than development agencies.
Our backlog at fiscal 2021 year-end was $3.5 billion, an increase of $241.0 million, or 7.4%, compared to fiscal 2020 year-end. Of this amount, GSG and CIG reported $2.3 billion and $1.2 billion of backlog, respectively, at fiscal 2021 year-end.
Our backlog at fiscal 2022 year-end was $3.7 billion, an increase of $264 million, or 7.6%, compared to fiscal 2021 year-end. Of this amount, GSG and CIG reported $2.3 billion and $1.5 billion of backlog, respectively, at fiscal 2022 year-end.
GSG supports U.S. government civilian and defense agencies with services in water, environment, sustainable infrastructure, information technology, and disaster management. GSG also provides engineering design services for U.S. municipal and commercial clients, especially in water infrastructure, solid waste, and high-end sustainable infrastructure designs.
GSG supports U.S. government civilian and defense agencies with services in water, environment, sustainable infrastructure, information technology and disaster management. GSG also provides engineering design services for U.S. based federal and municipal clients, especially in water infrastructure, flood protection and solid waste.
Remediation and Construction Management We continued to report the results of the wind-down of our non-core construction activities in the RCM reportable segment in fiscal 2021. As of October 3, 2021, there was no remaining backlog for RCM as the projects were complete.
Remediation and Construction Management We continued to report the results of the wind-down of our non-core construction activities in the RCM reportable segment in fiscal 2022. There has been no remaining backlog for RCM since fiscal 2018 as the projects were complete .
CIG also provides sustainable infrastructure and related environmental, engineering and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), the United Kingdom, as well as Brazil and Chile.
CIG supports commercial clients across the Fortun e 500, renewable energy, industrial, high-performance buildings and aerospace markets. CIG also provides sustainable infrastructure and related environmental, engineering, and project management services to commercial and local government clients across Canada, in Asia Pacific (primarily Australia and New Zealand), the United Kingdom, as well as Brazil and Chile.
The following table presents the percentage of our revenue by reportable segment: Fiscal Year Reportable Segment 2021 2020 2019 GSG 60.5% 59.4% 58.6% CIG 41.2 42.3 43.1 Inter-segment elimination (1.7) (1.7) (1.7) 100.0% 100.0% 100.0% For additional information regarding our reportable segments, see Note 18, "Reportable Segments" of the "Notes to Consolidated Financial Statements" included in Item 8.
The following table presents the percentage of our revenue by reportable segment: Fiscal Year Reportable Segment 2022 2021 2020 GSG 52.0% 55.2% 52.7% CIG 49.6 46.7 49.1 Inter-segment elimination (1.6) (1.9) (1.8) 100.0% 100.0% 100.0% For additional information regarding our reportable segments, see Note 18, "Reportable Segments" of the "Notes to Consolidated Financial Statements" included in Item 8.
CIG also provides environmental remediation and reconstruction services to evaluate and restore lands to beneficial use, remediating, and restoring contaminated facilities at military locations in the U.S. and around the world; managing large, complex sediment remediation programs that help restore rivers and coastal waters to beneficial use; constructing state-of-the-art water treatment plants for U.S. commercial clients; and supporting utilities in the U.S. in implementing infrastructure needs.
CIG also provides environmental remediation and reconstruction services to evaluate and restore lands to beneficial use, remediating, and restoring contaminated facilities in the U.S. and around the world; managing large, complex sediment remediation programs that help restore rivers and coastal waters to beneficial use; and supporting utilities in the U.S. in implementing restoration and environmental management programs.
We use our Tt I-Hub to demonstrate and test technology solutions to facilitate rapid deployment by our clients. We provide technical support for the Federal Aviation Administration ("FAA") to optimize the U.S. airspace system and support related aviation systems integration for the U.S. and other countries' metropolitan airports. We provide specialized modeling and data analytics for airspace acoustic analysis.
We provide technical support for the Federal Aviation Administration ("FAA") to optimize the U.S. airspace system and support related aviation systems integration for the U.S. and other countries' metropolitan airports. We provide specialized modeling and data analytics for airspace acoustic analysis.
In addition to experience in both public and private consulting and engineering firms over his 24-year career, Mr. Amidon also served in a variety of business leadership and project development roles at Hess Corporation, a leading independent oil and gas company. Mr. Amidon is a registered Professional Engineer.
He has managed projects in the U.S., Africa, Australia, Europe and the Caribbean. In addition to experience in both public and private consulting and engineering firms over his 25-year career, Mr. Amidon also served in a variety of business leadership and project development roles at Hess Corporation, a leading independent oil and gas company. Mr.
Amidon was appointed President of CIG in September 2019, in addition to his role as President of CIG's Client Account Management Division. Mr. Amidon has served as a project manager, key account manager, operations manager, and regional manager since joining us in 2012. He has managed a variety of complex, high profile programs for key clients, including Fortune 100 companies.
Amidon 55 Senior Vice President, President of CIG and the Client Account Management Division of CIG Mr. Amidon was appointed President of CIG in September 2019, in addition to his role as President of CIG's Client Account Management Division. Mr. Amidon has served as a project manager, key account manager, operations manager and regional manager since joining us in 2012.
The program is led by our Chief Engineer and involves extensive training on how to effectively manage all components of a project. • Fearless Entrepreneur Program. Through this program, Tetra Tech develops client-oriented, business-minded professionals who are driven to understand and meet the needs of our clients. Developing professionals are challenged and mentored through a process of building client relationships.
Through this program, Tetra Tech develops client-oriented, business-minded professionals who are driven to understand and meet the needs of our clients. Developing professionals are challenged and mentored through a process of building client relationships.
His focus has been on leading high value consulting services that deliver scientific, engineering and regulatory solutions for challenging environmental, engineering, permitting and public relations problems for energy, industrial, institutional and custodial trust clients. He has managed projects in the U.S., Africa, Australia, Europe, and the Caribbean.
He has managed a variety of complex, high profile programs for key clients, including Fortune 100 companies. His focus has been on leading high value consulting services that deliver scientific, engineering and regulatory solutions for challenging environmental, engineering, permitting and public relations problems for energy, industrial, institutional and custodial trust clients.
He has managed complex programs for many small and Fortune 500 clients, both in the United States and internationally. Mr. Batrack holds a B.A. degree in Business Administration from the University of Washington. Leslie L. Shoemaker 64 President Dr.
He has managed complex programs for many small and Fortune 500 clients, both in the United States and internationally. Mr. Batrack holds a B.A. degree in Business Administration from the University of Washington. Jill Hudkins 51 President Ms. Hudkins was appointed President in October 2022. Ms. Hudkins has been with us for over 24 years in increasingly responsible positions.
Project Examples Project examples are provided on our company website located at tetratech.com, including expert interviews, in-depth articles, and project profiles that demonstrate our services acros s water, environment, sustainable infrastructure, renewable energy, and international development. Fiscal 2022 Reportable Segments On the first day of fiscal 2022, we created a new High Performance Buildings division in our CIG reportable segment.
Project Examples Project examples are provided on our company website located at tetratech.com, including expert interviews, in-depth articles and project profiles that demonstrate our services acros s water, environment, sustainable infrastructure, renewable energy and international development. Clients We provide services to a diverse base of U.S. federal government, U.S. state and local government, U.S. commercial and international clients.
We also proactively share emerging technology and new ideas through our knowledge transfer system, Tetra Tech Technology Transfer ("T4"). T4 facilitates our innovation culture through webcasts, blogs, multi-media, and social media across our global operations. Reportable Segments In fiscal 2021, we managed our operations under two reportable segments.
We also proactively share emerging technology and new ideas through our knowledge transfer system, Tetra Tech Technology Transfer ("T4"). T4 facilitates our innovation culture through webcasts, blogs, multi-media and social media across our global operations. Our Project Management Training Program provides comprehensive training in high-end project leadership skills through online training, virtual workshops and in-person events.
Dr. Shoemaker holds a B.A. degree in Mathematics from Hamilton College, a Master of Engineering from Cornell University and a Ph.D. in Agricultural Engineering from the University of Maryland. Steven M. Burdick 57 Executive Vice President, Chief Financial Officer Mr. Burdick has served as our Executive Vice President, Chief Financial Officer since April 2011.
Hudkins holds a master's degree in Civil and Environmental Engineering from the Massachusetts Institute of Technology, and a bachelor's degree in Civil and Environmental Engineering from Duke University. Steven M. Burdick 58 Executive Vice President, Chief Financial Officer Mr. Burdick has served as our Executive Vice President, Chief Financial Officer since April 2011.
Christensen held positions at Burroughs Corporation and Apple Computer. Mr. Christensen holds B.A. and M.B.A. degrees from Brigham Young University. Preston Hopson 45 Senior Vice President, General Counsel and Secretary Mr. Hopson was appointed Senior Vice President, General Counsel and Secretary to the Board of Directors in January 2018.
Carter holds a B.S. in Business Administration from Miami University and is a Certified Public Accountant. Preston Hopson 46 Senior Vice President, General Counsel and Secretary Mr. Hopson was appointed Senior Vice President, General Counsel and Secretary to the Board of Directors in January 2018.
From 2005 to 2015, she led our strategic planning, business development and company-wide collaboration programs. Her technical expertise is in the management of large-scale watershed and master planning studies, development of modeling tools and application of optimization tools for decision making. Additionally, she is our Chief Sustainability Officer who leads our Sustainability Council to implement sustainability-related policies and practices company-wide.
Her technical expertise is in the management of large-scale watershed and master planning studies, development of modeling tools and application of optimization tools for decision making. Since the inception of our sustainability program in 2010, she has served as Chief Sustainability Officer leading the formation and evolution of the program. Dr.
Shoemaker was appointed President in September 2019, having previously served as President of WEI Business Group from April 2015 to November 2017, and CIG from November 2017 to September 2019. Dr. Shoemaker joined us in 1991, and has served in various management capacities, including project and program manager, water resources manager and infrastructure group president.
Shoemaker joined us in 1991, and has served in various management capacities, including project and program manager, water resources manager and business group president. From 2005 to 2015, she led our strategic planning, business development and company-wide collaboration programs.
Tetra Tech Delta is continually expanding and includes cutting-edge tools on interpretive analysis, modeling of physical systems, forecasting and scenario analysis, optimization and operations research. In implementing our Leading with Science® approach, we work with our clients to explore, incubate, and test solutions in our Tetra Tech Innovation Hubs ("Tt I-Hub").
Tetra Tech Delta is continually expanding and includes cutting-edge tools on interpretive analysis, modeling of physical systems, forecasting and scenario analysis, optimization and operations research. Leading with Science® also means fully leveraging the collective expertise provided by our global talent force of 21,000 associates.
Our Sustainability Program is led by our Chief Sustainability Officer, who has been appointed by executive management and is supported by other key corporate and operations representatives via our Sustainability Council. We have established a clear set of metrics to evaluate our progress toward our corporate sustainability goals.
Our Sustainability Program is led by our Chief Sustainability Officer, who has been appointed by our Board of Directors and is supported by other key corporate and operations representatives via our Sustainability Council. We continuously implement sustainability-related policies and practices and assess the results of our efforts in order to improve upon them in the future.
Working with our clients, we will continue to advance the science of sustainability, and thereby magnify the scale of our climate-positive impact on the world. As part of the UNGC, we fulfill the annual Communication on Progress via Tetra Tech's Sustainability Report Card that is published on Earth Day.
Tetra Tech's Board of Directors Strategic Planning and Enterprise Risk Management Committee reviews and approves the Sustainability Program and evaluates our progress in achieving the goals and objectives outlined in our plan. As part of the UNGC, we fulfill the annual Communication on Progress via Tetra Tech's Sustainability Report Card that is published on Earth Day.
Burdick holds a B.S. degree in Business Administration from Santa Clara University and is a Certified Public Accountant. 14 Name Age Position Derek G. Amidon 54 Senior Vice President, President of CIG and the Client Account Management Division of CIG Mr.
Burdick holds a B.S. degree in Business Administration from Santa Clara University and is a Certified Public Accountant. 14 Name Age Position Leslie Shoemaker 65 Executive Vice President, Chief Sustainability and Leadership Development Officer Dr. Shoemaker was appointed Executive Vice President, Chief Sustainability and Leadership Development Officer in October 2022 after serving as Tetra Tech's President since September 2019. Dr.
There has 4 been no remaining backlog for RCM since fiscal 2018 as the projects were complete.
There has been no remaining backlog for RCM since fiscal 2018 as the projects were complete. 4 Beginning of fiscal 2022, we aligned our operations to better serve our clients and markets, and created a new High Performance Buildings ("HPB") division in the CIG reportable segment.
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Tt I-Hub provides a collaborative platform for exploration, testing, and formulation of new solutions in partnership with clients, academia and donor agencies. Leading with Science® also means fully leveraging the collective expertise provided by our global talent force of 21,000 associates.
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As a result, we transferred some related operations in the GSG reportable segment to the CIG reportable segment. Prior year amounts for reportable segments have been reclassified to conform to the current year presentation.
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Commercial/International Services Group CIG primarily provides consulting and engineering services to U.S. commercial clients, and international clients that include both commercial and government sectors. CIG supports commercial clients across the Fortun e 500, renewable energy, industrial, manufacturing, and aerospace markets.
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Our international development services include supporting donor agencies to develop safe and reliable water supplies and sanitation services, support the eradication of poverty, improve livelihoods, promote democracy and increase economic growth. Our programs span planning, designing, implementing, researching and monitoring projects and leverage advanced technology to collect, manage and provide analytics for our clients.
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As a result, we transferred some related operations in our GSG reportable segment with annual revenue of approximately $170 million to our CIG reportable segment. Beginning in the first quarter of fiscal 2022, our segment reporting will reflect this transfer and our historical comparisons will be revised to be consistent with the fiscal 2022 presentation.
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Our projects also include building capacity and strengthening institutions in areas such as global health, energy sector reform, utility management, education, food security and local governance. Commercial/International Services Group CIG primarily provides high-end consulting and engineering services to U.S. commercial clients, and international clients inclusive of the commercial and government sectors.
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Clients We provide services to a diverse base of U.S. state and local government, U.S. federal government, U.S. commercial, and international clients.
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In May 2022, we received a cash settlement for the last $11 million RCM claim receivable in dispute resolution. This settlement resulted in an immaterial gain in the third quarter of fiscal 2022. There were no significant operating activities in RCM for fiscal 2022, 2021 and 2020.
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In addition, our program is based on the Global Reporting Initiative ("GRI" ) Sustainability Report Framework, the internationally accepted sustainability reporting protocol for corporate sustainability plans, which includes three fundamental areas: environmental, economic, and governance.
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Our overarching goal is to improve the lives of one billion people by 2030. Because our biggest impact on the world is through the projects we perform for our clients, we are tracking the total number of lives improved from our projects.
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Each metric corresponds with one or more performance indicators from GRI and include the following categories: environmental (greenhouse gas emissions), economic, health and safety, information technology, human resources, and real estate. We continuously implement sustainability-related policies and practices and assess the results of our efforts in order to improve upon them in the future.
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We align our project impact analysis with the Global Reporting Initiative ("GRI") standards and the United Nations Sustainable Development Goals ("SDG's"), which measure social benefit and aim to reduce poverty in communities around the world.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeCertain of our contracts may require our employees travel to and work in high-risk countries that are undergoing political, social, and economic upheavals resulting from war, civil unrest, criminal activity, acts of terrorism, or public health crises. For example, we currently have employees working in high security risk countries such as Afghanistan and Iraq.
Biggest changeOur business activities may require our employees to travel to and work in countries where there are high security risks, which may result in employee death or injury, repatriation costs or other unforeseen costs. 28 Certain of our contracts may require our employees travel to and work in high-risk countries that are undergoing political, social and economic upheavals resulting from war, civil unrest, criminal activity, acts of terrorism or public health crises.
For example, we must comply with FAR, the Truth in Negotiations Act, CAS, the American Recovery and Reinvestment Act of 2009, the Services Contract Act, and the DoD security regulations, as well as many other rules and regulations.
For example, we must comply with FAR, the Truth in Negotiations Act, CAS, the American Recovery and Reinvestment Act of 2009, the Services Contract Act, the DoD security regulations as well as many other rules and regulations.
In addition, we must comply with other government regulations related to employment practices, environmental protection, health and safety, tax, accounting, and anti-fraud measures, as well as many other regulations in order to maintain our government contractor status. These laws and regulations affect how we do business with our clients and, in some instances, impose additional costs on our business operations.
In addition, we must comply with other government regulations related to employment practices, environmental protection, health and safety, tax, accounting, anti-fraud measures as well as many other regulations in order to maintain our government contractor status. These laws and regulations affect how we do business with our clients and, in some instances, impose additional costs on our business operations.
The trading price of our common stock may be significantly affected by various factors, including quarter-to-quarter variations in our financial results, such as revenue, profits, days sales outstanding, backlog, and other measures of financial performance or financial condition (which factors may, themselves, be affected by the factors described below): • loss of key employees; • the number and significance of client contracts commenced and completed during a quarter; • creditworthiness and solvency of clients; • the ability of our clients to terminate contracts without penalties; • general economic or political conditions; • unanticipated changes in contract performance that may affect profitability, particularly with contracts that are fixed-price or have funding limits; • contract negotiations on change orders, requests for equitable adjustment, and collections of related billed and unbilled accounts receivable; 31 • seasonality of the spending cycle of our public sector clients, notably the U.S. federal government, the spending patterns of our commercial sector clients, and weather conditions; • budget constraints experienced by our U.S. federal, and state and local government clients; • integration of acquired companies; • changes in contingent consideration related to acquisition earn-outs; • divestiture or discontinuance of operating units; • employee hiring, utilization and turnover rates; • delays incurred in connection with a contract; • the size, scope and payment terms of contracts; • the timing of expenses incurred for corporate initiatives; • reductions in the prices of services offered by our competitors; • threatened or pending litigation; • legislative and regulatory enforcement policy changes that may affect demand for our services; • the impairment of goodwill or identifiable intangible assets; • the fluctuation of a foreign currency exchange rate; • stock-based compensation expense; • actual events, circumstances, outcomes, and amounts differing from judgments, assumptions, and estimates used in determining the value of certain assets (including the amounts of related valuation allowances), liabilities, and other items reflected in our consolidated financial statements; • success in executing our strategy and operating plans; • changes in tax laws or regulations or accounting rules; • results of income tax examinations; • the timing of announcements in the public markets regarding new services or potential problems with the performance of services by us or our competitors, or any other material announcements; • speculation in the media and analyst community, changes in recommendations or earnings estimates by financial analysts, changes in investors’ or analysts’ valuation measures for our stock, and market trends unrelated to our stock; • our announcements concerning the payment of dividends or the repurchase of our shares; • resolution of threatened or pending litigation; • changes in investors’ and analysts’ perceptions of our business or any of our competitors’ businesses; • changes in environmental legislation; • broader market fluctuations; and • general economic or political conditions.
The trading price of our common stock may be significantly affected by various factors, including quarter-to-quarter variations in our financial results, such as revenue, profits, days sales outstanding, backlog and other measures of financial performance or financial condition (which factors may, themselves, be affected by the factors described below): • loss of key employees; • the number and significance of client contracts commenced and completed during a quarter; • creditworthiness and solvency of clients; • the ability of our clients to terminate contracts without penalties; • general economic or political conditions; • unanticipated changes in contract performance that may affect profitability, particularly with contracts that are fixed-price or have funding limits; • contract negotiations on change orders, requests for equitable adjustment and collections of related billed and unbilled accounts receivable; • seasonality of the spending cycle of our public sector clients, notably the U.S. federal government, the spending patterns of our commercial sector clients and weather conditions; • budget constraints experienced by our U.S. federal, and state and local government clients; 30 • integration of acquired companies; • changes in contingent consideration related to acquisition earn-outs; • divestiture or discontinuance of operating units; • employee hiring, utilization and turnover rates; • delays incurred in connection with a contract; • the size, scope and payment terms of contracts; • the timing of expenses incurred for corporate initiatives; • reductions in the prices of services offered by our competitors; • threatened or pending litigation; • legislative and regulatory enforcement policy changes that may affect demand for our services; • the impairment of goodwill or identifiable intangible assets; • the fluctuation of a foreign currency exchange rate; • stock-based compensation expense; • actual events, circumstances, outcomes and amounts differing from judgments, assumptions and estimates used in determining the value of certain assets (including the amounts of related valuation allowances), liabilities and other items reflected in our consolidated financial statements; • success in executing our strategy and operating plans; • changes in tax laws or regulations or accounting rules; • results of income tax examinations; • the timing of announcements in the public markets regarding new services or potential problems with the performance of services by us or our competitors or any other material announcements; • speculation in the media and analyst community, changes in recommendations or earnings estimates by financial analysts, changes in investors’ or analysts’ valuation measures for our stock and market trends unrelated to our stock; • our announcements concerning the payment of dividends or the repurchase of our shares; • resolution of threatened or pending litigation; • changes in investors’ and analysts’ perceptions of our business or any of our competitors’ businesses; • changes in environmental legislation; • broader market fluctuations; and • general economic or political conditions.
International business is subject to a variety of risks, including: • imposition of governmental controls and changes in laws, regulations, or policies; • lack of developed legal systems to enforce contractual rights; • greater risk of uncollectible accounts and longer collection cycles; • currency exchange rate fluctuations, devaluations, and other conversion restrictions; • uncertain and changing tax rules, regulations, and rates; • the potential for civil unrest, acts of terrorism, force majeure, war or other armed conflict, and greater physical security risks, which may cause us to have to leave a country quickly; • logistical and communication challenges; • changes in regulatory practices, including tariffs and taxes; • changes in labor conditions; • general economic, political, and financial conditions in foreign markets; and • exposure to civil or criminal liability under the U.S.
International business is subject to a variety of risks, including: • imposition of governmental controls and changes in laws, regulations or policies; • lack of developed legal systems to enforce contractual rights; • greater risk of uncollectible accounts and longer collection cycles; • currency exchange rate fluctuations, devaluations and other conversion restrictions; • uncertain and changing tax rules, regulations and rates; • the potential for civil unrest, acts of terrorism, force majeure, war or other armed conflict and greater physical security risks, which may cause us to have to leave a country quickly; • logistical and communication challenges; • changes in regulatory practices, including trade policies, tariffs and taxes; • changes in labor conditions; • general economic, political and financial conditions in foreign markets; and • exposure to civil or criminal liability under the U.S.
Many of these proposed and enacted changes to the taxation of our activities could increase our effective tax rate and harm our results of operations. 18 Demand for our services is cyclical and vulnerable to economic downturns. If economic growth slows, government fiscal conditions worsen, or client spending declines further, then our revenue, profits and financial condition may deteriorate.
Many of these proposed and enacted changes to the taxation of our activities could increase our effective tax rate and harm our results of operations. Demand for our services is cyclical and vulnerable to economic downturns. If economic growth slows, government fiscal conditions worsen or client spending declines further, then our revenue, profits and financial condition may deteriorate.
In addition, project performance can be affected by a number of factors beyond 27 our control, including unavoidable delays from governmental inaction, public opposition, inability to obtain financing, weather conditions, unavailability of vendor materials, changes in the project scope of services requested by our clients, industrial accidents, environmental hazards, labor disruptions and other factors.
In addition, project performance can be affected by a number of factors beyond our control, including unavoidable delays from governmental inaction, public opposition, inability to obtain financing, weather conditions, unavailability of vendor materials, changes in the project scope of services requested by our clients, industrial accidents, environmental hazards, labor disruptions and other factors.
Our continuing work in the areas governed by these laws and regulations exposes us to the risk of substantial liability. Force majeure events, including natural disasters, pandemics and terrorist actions, could negatively impact the economies in which we operate or disrupt our operations, which may affect our financial condition, results of operations, or cash flows.
Our continuing work in the areas governed by these laws and regulations exposes us to the risk of substantial liability. 29 Force majeure events, including natural disasters, pandemics and terrorist actions could negatively impact the economies in which we operate or disrupt our operations, which may affect our financial condition, results of operations or cash flows.
The GDPR and CCPA are just examples of privacy regulations that are emerging in locations where we work. We face the threat to our computer systems of unauthorized access, computer hackers, computer viruses, malicious code, organized cyber-attacks and other security problems and system disruptions, including possible unauthorized access to our and our clients' proprietary or classified information.
The GDPR and CCPA are just examples of privacy regulations that are emerging in locations where we work. 25 We face the threat to our computer systems of unauthorized access, computer hackers, computer viruses, malicious code, organized cyber-attacks and other security problems and system disruptions, including possible unauthorized access to our and our clients' proprietary or classified information.
Liabilities related to environmental contamination or human exposure to hazardous substances, or a failure to comply with applicable regulations, could result in substantial costs to us, including clean-up costs, 30 fines, civil or criminal sanctions, and third-party claims for property damage or personal injury or cessation of remediation activities.
Liabilities related to environmental contamination or human exposure to hazardous substances, or a failure to comply with applicable regulations, could result in substantial costs to us, including clean-up costs, fines, civil or criminal sanctions, and third-party claims for property damage or personal injury or cessation of remediation activities.
As a result, material performance problems for existing and future contracts could cause actual results of operations to differ from those anticipated by us and could cause us to suffer damage to our reputation within our industry and client base. New legal requirements could adversely affect our operating results .
As a result, material performance problems for existing 26 and future contracts could cause actual results of operations to differ from those anticipated by us and could cause us to suffer damage to our reputation within our industry and client base. New legal requirements could adversely affect our operating results .
Force majeure or extraordinary events beyond the control of the contracting parties, such as natural and man-made disasters, as well as pandemics and terrorist actions, could negatively impact the economies in which we operate by causing the closure of offices, interrupting projects, and forcing the relocation of employees.
Force majeure or extraordinary events beyond the control of the contracting parties, such as natural and man-made disasters, pandemics and terrorist actions could negatively impact the economies in which we operate by causing the closure of offices, interrupting projects and forcing the relocation of employees.
For example, the European Union's General Data Protection Regulation ("GDPR") extends the scope of the European Union data protection laws to all companies processing data of European Union residents, regardless of the company's location. In addition, the California Consumer Privacy Act ("CCPA") 26 increases the penalties for data privacy incidents.
For example, the European Union's General Data Protection Regulation ("GDPR") extends the scope of the European Union data protection laws to all companies processing data of European Union residents, regardless of the company's location. In addition, the California Consumer Privacy Act ("CCPA") increases the penalties for data privacy incidents.
Further, indemnification obligations may be subject to dispute or concerns regarding the creditworthiness of the former owners; • record goodwill and non-amortizable intangible assets that are subject to impairment testing and potential impairment charges; • experience volatility in earnings due to changes in contingent consideration related to acquisition earn-out liability estimates; 22 • incur amortization expenses related to certain intangible assets; • lose existing or potential contracts as a result of conflict of interest issues; • incur large and immediate write-offs; or • become subject to litigation.
Further, indemnification obligations may be subject to dispute or concerns regarding the creditworthiness of the former owners; • record goodwill and non-amortizable intangible assets that are subject to impairment testing and potential impairment charges; • experience volatility in earnings due to changes in contingent consideration related to acquisition earn-out liability estimates; 21 • incur amortization expenses related to certain intangible assets; • lose existing or potential contracts as a result of conflict of interest issues; • incur large and immediate write-offs; or • become subject to litigation.
Our inability to win or renew government contracts during regulated procurement processes could harm our operations and significantly reduce or eliminate our profits. 20 Each year, client funding for some of our U.S. government contracts may rely on government appropriations or public-supported financing. If adequate public funding is delayed or is not available, then our profits and revenue could decline.
Our inability to win or renew government contracts during regulated procurement processes could harm our operations and significantly reduce or eliminate our profits. 19 Each year, client funding for some of our U.S. government contracts may rely on government appropriations or public-supported financing. If adequate public funding is delayed or is not available, then our profits and revenue could decline.
The incoming U.S. presidential administration has called for changes to fiscal and tax policies, which may include comprehensive tax reform. In addition, many international legislative and regulatory bodies have proposed and/or enacted legislation that could significantly impact how U.S. multinational corporations are taxed on foreign earnings.
The current U.S. presidential administration has called for changes to fiscal and tax policies, which may include comprehensive tax reform. In addition, many international legislative and regulatory bodies have proposed and/or enacted legislation that could significantly impact how U.S. multinational corporations are taxed on foreign earnings.
Our actual business and financial results could differ from those estimates, which may significantly reduce or eliminate our profits. 24 Our profitability could suffer if we are not able to maintain adequate utilization of our workforce. The cost of providing our services, including the extent to which we utilize our workforce, affects our profitability.
Our actual business and financial results could differ from those estimates, which may significantly reduce or eliminate our profits. 23 Our profitability could suffer if we are not able to maintain adequate utilization of our workforce. The cost of providing our services, including the extent to which we utilize our workforce, affects our profitability.
The uncertainty of the timing of a project can present difficulties in planning the amount of personnel needed for the project. If the project is delayed 23 or canceled, we may bear the cost of an underutilized workforce that was dedicated to fulfilling the project.
The uncertainty of the timing of a project can present difficulties in planning the amount of personnel needed for the project. If the project is delayed 22 or canceled, we may bear the cost of an underutilized workforce that was dedicated to fulfilling the project.
Certain of our contracts require us 25 to satisfy specific design, engineering, procurement, or construction mile stones in order to receive payment for the work completed or equipment or supplies procured prior to achievement of the applicable milestone.
Certain of our contracts require us to 24 satisfy specific design, engineering, procurement or construction mile stones in order to receive payment for the work completed or equipment or supplies procured prior to achievement of the applicable milestone.
While outside of the U.S. federal government no single client accounted for over 21 10% of our revenue for fiscal 2021, we face collection risk as a normal part of our business where we perform services and subsequently bill our clients for such services.
While outside of the U.S. federal government no single client accounted for over 20 10% of our revenue for fiscal 2022, we face collection risk as a normal part of our business where we perform services and subsequently bill our clients for such services.
The continued global COVID-19 pandemic has created significant volatility, uncertainty and economic disruption.
The recent global COVID-19 pandemic has created significant volatility, uncertainty and economic disruption.
The extent to which the COVID-19 pandemic continues to impact our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the pandemic; governmental, business and individuals’ actions, including vaccination requirements, that have been and continue to be taken in response to the pandemic; the impact of the pandemic on economic activity and actions taken in response; the effect on our clients’ demand for our services; our ability to provide our services; the ability of our clients to pay for our services or their need to seek reductions of our fees; any closures of our and our clients’ offices and facilities; and the need for enhanced health and hygiene requirements or social distancing or other measures in attempts to counteract future outbreaks in our offices and facilities.
The extent to which future health outbreaks could impact our business, operations and financial results would depend on numerous evolving factors that we may not be able to accurately predict, including: the duration and scope of the outbreak; governmental, business and individuals’ actions, including vaccination requirements, taken in response to the outbreak; the impact of the outbreak on economic activity and actions taken in response; the effect on our clients’ demand for our services; our ability to provide our services; the ability of our clients to pay for our services or their need to seek reductions of our fees; any closures of our and our clients’ offices and facilities; and the need for enhanced health and hygiene requirements or social distancing or other measures in attempts to counteract future outbreaks in our offices and facilities.
Because we have historically acquired a significant number of companies, goodwill and intangible assets represent a substantial portion of our assets. As of October 3, 2021, our goodwill was $1.1 billion and other intangible ass ets were $38.0 million. We are required to perform a goodwill impairment test for potential impairment at least on an annual basis.
Because we have historically acquired a significant number of companies, goodwill and intangible assets represent a substantial portion of our assets. As of October 2, 2022, our goodwill was $1.1 billion and other intangible ass ets were $29.2 million . We are required to perform a goodwill impairment test for potential impairment at least on an annual basis.
For example, we had goodwill impairment of $15.8 million and $7.8 million in fiscal 2020 and 2019, respectively. We had no goodwill impairment in fisca l 2021. We could be adversely affected by violations of the FCPA and similar worldwide anti-bribery laws.
For example, we had goodwill impairment of $15.8 million in fiscal 2020. We had no goodwill impairment in fiscal 2021 and 2022. We could be adversely affected by violations of the FCPA and similar worldwide anti-bribery laws.
We derive a substantial amount of our revenue from U.S. federal, state and local government agencies, and any disruption in government funding or in our relationship with those agencies could adversely affect our business. 19 In fiscal 2021, we gener ated 50.3% of our reve nue from contracts with U.S. federal, and state and local government agencies.
We derive a substantial amount of our revenue from U.S. federal, state and local government agencies, and any disruption in government funding or in our relationship with those agencies could adversely affect our business. 18 In fiscal 2022, we gener ated 47.6% of our reve nue from contracts with U.S. federal, and state and local government agencies.
Any of these events could adversely affect our business, financial condition and results of operations. Continuing worldwide political, social and economic uncertainties may adversely affect our revenue and profitability. The last several years have been periodically marked by political, social and economic concerns, including decreased consumer confidence, the lingering effects of international conflicts, energy costs and inflation.
Business and Operations Risk Factors Continuing worldwide political, social and economic uncertainties may adversely affect our revenue and profitability. The last several years have been periodically marked by political, social and economic concerns, including decreased consumer confidence, the lingering effects of international conflicts, energy costs and inflation.
Business and Operations Risk Factors Our results of operations could be adversely affected by health outbreaks such as the COVID-19 pandemic. A significant outbreak, epidemic or pandemic of contagious diseases in any geographic area in which we operate could result in a health crisis adversely affecting the economies, financial markets and overall demand for our services in such areas.
A significant outbreak, epidemic or pandemic of contagious diseases in any geographic area in which we operate could result in a health crisis adversely affecting the economies, financial markets and overall demand for our services in such areas.
We engage in consulting, engineering, program management, and technical services that can result in substantial injury or damages that may expose us to legal proceedings, investigations, and disputes.
Legal proceedings, investigations and disputes could result in substantial monetary penalties and damages, especially if such penalties and damages exceed or are excluded from existing insurance coverage. 27 We engage in consulting, engineering, program management and technical services that can result in substantial injury or damages that may expose us to legal proceedings, investigations and disputes.
Our backlog at October 3, 2021 wa s $3.5 billion, an increase of $241.0 million, or 7.4%, compar ed to the end of fiscal 2020. We include in backlog only those contracts for which funding has been provided and work authorizations have been received.
Our backlog at October 2, 2022 w as $3.7 billion, an increase of $263.9 million, or 7.6%, compared t o the end of fiscal 2021. We include in backlog only those contracts for which funding has been provided and work authorizations have been received.
Our failure to comply with applicable laws or regulations, or acts of misconduct could subject us to fines and penalties, loss of security clearances, and suspension or debarment from contracting, any or all of which could harm our reputation, reduce our revenue and profits, and subject us to criminal and civil enforcement actions. 29 Our business activities may require our employees to travel to and work in countries where there are high security risks, which may result in employee death or injury, repatriation costs or other unforeseen costs.
Our failure to comply with applicable laws or regulations, or acts of misconduct could subject us to fines and penalties, loss of security clearances and suspension or debarment from contracting, any or all of which could harm our reputation, reduce our revenue and profits and subject us to criminal and civil enforcement actions.
Total accounts receivable at October 3, 2021 included approxima tely $11 million related to such claims. Our failure to win new contracts and renew existing contracts with private and public sector clients could adversely affect our profitability. Our business depends on our ability to win new contracts and renew existing contracts with private and public sector clients.
Our failure to win new contracts and renew existing contracts with private and public sector clients could adversely affect our profitability. Our business depends on our ability to win new contracts and renew existing contracts with private and public sector clients.
Accordingly, these factors affect our ability to forecast our future revenue and earnings from business areas that may be adversely impacted by market conditions. Our international operations expose us to legal, political, and economic risks in different countries as well as currency exchange rate fluctuations that could harm our business and financial results.
Accordingly, these factors affect our ability to forecast our future revenue and earnings from business areas that may be adversely impacted by market conditions.
In fiscal 2021, we generat ed 29.8% of our rev enue from our international operations, primarily in Canada, Australia, the United Kingdom and from international clients for work that is performed by our domestic operations.
Our international operations expose us to legal, political and economic risks in different countries as well as currency exchange rate fluctuations that could harm our business and financial results. 17 In fiscal 2022, we generat ed 31.0% of our rev enue from our international operations, primarily in Canada, Australia, the United Kingdom and from international clients for work that is performed by our domestic operations.
This competitive environment could force us to make price concessions or otherwise reduce prices for our services.
This competitive environment could force us to make price concessions or otherwise reduce prices for our services. If we are unable to maintain our competitiveness and win bids for future projects, our market share, revenue and profits will decline.
As a result, our international risk exposure may be more or less than the percentage of revenue attributed to our international operations. The United Kingdom's withdrawal from the European Union could have an adverse effect on our business and financial results.
As a result, our international risk exposure may be more or less than the percentage of revenue attributed to our international operations. Our results of operations could be adversely affected by health outbreaks such as the coronavirus disease 2019 ("COVID-19") pandemic.
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Clients may also slow down decision-making, delay planned work or seek to terminate existing agreements. In addition, while governments around the world have enacted emergency relief programs designed to combat the economic impact of the pandemic, the long-term effect of such spending is uncertain and could result in future budgetary restrictions for our government clients.
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Ongoing instability and current conflicts in global markets, including Eastern Europe, the Middle East and Asia, and the potential for other conflicts and future terrorist activities and other recent geopolitical events throughout the world, including Russia's invasion of Ukraine, have created and may continue to create economic and political uncertainties and impacts.
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Although certain indices and economic data have shown signs of stabilization in the United States and certain global markets, there can be no assurance that these improvements will be broad-based or sustainable.
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Clients could also slow down decision-making, delay planned work or seek to terminate existing agreements. Any of these events could adversely affect our business, financial condition and results of operations. The United Kingdom's withdrawal from the European Union could have an adverse effect on our business and financial results.
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If we are unable to maintain our competitiveness and win bids for future projects, our market share, revenue, and profits will decline. 28 Legal proceedings, investigations, and disputes could result in substantial monetary penalties and damages, especially if such penalties and damages exceed or are excluded from existing insurance coverage.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following table summarizes our ten most significant leased properties by location based on annual rental expenses (listed alphabetically, except for our corporate headquarters): Location Description Reportable Segment Pasadena, CA Corporate Headquarters Corporate Adelaide, South Australia, Australia Office Building GSG / CIG Arlington, VA Office Building GSG / CIG Boston, MA Office Building GSG / CIG Irvine, CA Office Building GSG / CIG London, United Kingdom Office Building GSG / CIG Melbourne, Victoria, Australia Office Building GSG / CIG New York, NY Office Building GSG Orlando, FL Office Building GSG / CIG Perth, Western Australia, Australia Office Building CIG
Biggest changeThe following table summarizes our ten most significant leased properties by location based on annual rental expenses (listed alphabetically, except for our corporate headquarters): Location Description Reportable Segment Pasadena, CA Corporate Headquarters Corporate Arlington, VA Office Building GSG Boston, MA Office Building GSG / CIG Irvine, CA Office Building GSG / CIG London, United Kingdom Office Building GSG / CIG New York, NY Office Building GSG /CIG Orlando, FL Office Building GSG / CIG Pittsburgh, PA Office Building GSG / CIG San Diego, CA Office Building GSG / CIG Vancouver, BC, Canada Office Building CIG
Item 2. Properties At fiscal 2021 year-end, we leased approximately 450 operating facilities in domestic and foreign locations. Our significant lease agreements expire at various dates through 2032. We believe that our current facilities are adequate for the operation of our business, and that suitable additional space in various local markets is available to accommodate any needs that may arise.
Item 2. Properties At fiscal 2022 year-end, we leased approximately 450 operating facilities in domestic and foreign locations. Our significant lease agreements expire at various dates through 2032. We believe that our current facilities are adequate for the operation of our business, and that suitable additional space in various local markets is available to accommodate any needs that may arise.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeInformation concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K is included in Exhibit 95. 33 PART II
Biggest changeInformation concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Act and Item 104 of Regulation S-K is included in Exhibit 95. 32 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeASSUMES $100 INVESTED ON OCTOBER 2, 2016 ASSUMES DIVIDEND REINVESTED FISCAL YEAR ENDED OCTOBER 3, 2021 2016 2017 2018 2019 2020 2021 Tetra Tech, Inc. $ 100.00 $ 132.40 $ 195.86 $ 245.59 $ 265.88 $ 444.98 NASDAQ Market Index 100.00 123.68 154.82 154.46 214.36 288.08 S&P 1000 Index 100.00 118.60 137.22 130.15 122.60 188.72 The performance graph above and related text are being furnished solely to accompany this annual report on Form 10-K pursuant to Item 201(e) of Regulation S-K, and are not being filed for purposes of Section 18 of the Exchange Act, and are not to be incorporated by reference into any of our filings with the SEC, whether made before or after the date hereof, regardless of any general incorporation language in such filing. 34 Stock Repurchase Program On January 27, 2020, the Board of Directors authorized a $200 million stock repurchase program, which was included in our remaining balance of $207.8 million as of fiscal 2020 year-end.
Biggest changeASSUMES $100 INVESTED ON OCTOBER 1, 2017 ASSUMES DIVIDEND REINVESTED FISCAL YEAR ENDED OCTOBER 2, 2022 2017 2018 2019 2020 2021 2022 Tetra Tech, Inc. $ 100.00 $ 147.92 $ 185.48 $ 200.81 $ 336.07 $ 286.12 NASDAQ Market Index 100.00 125.17 124.88 173.32 232.92 170.37 S&P 1000 Index 100.00 115.70 109.74 103.37 159.12 130.84 The performance graph above and related text are being furnished solely to accompany this annual report on Form 10-K pursuant to Item 201(e) of Regulation S-K, and are not being filed for purposes of Section 18 of the Exchange Act, and are not to be incorporated by reference into any of our filings with the SEC, whether made before or after the date hereof, regardless of any general incorporation language in such filing. 33 Stock Repurchase Program On October 5, 2021, our Board of Directors authorized a new stock repurchase program under which we could repurchase up to $400 million of our common stock in addition to the $147.8 million remaining under the previous stock repurchase program at October 3, 2021.
We declared and paid dividends totaling $0.64, $0.54, $0.44 and $0.38 per share in fiscal 2020, 2019, 2018 and 2017, respectively. The comparison in the graph below is based on historical data and is not intended to forecast the possible future performance of our common stock.
We declared and paid dividends totaling $0.74, $0.64, $0.54 and $0.44 per share in fiscal 2021, 2020, 2019 and 2018, respectively. The comparison in the graph below is based on historical data and is not intended to forecast the possible future performance of our common stock.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock is traded on the NASDAQ Global Select Market under the symbol TTEK. There were approximately 1,150 stockholders of record at October 3, 2021.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock is traded on the NASDAQ Global Select Market under the symbol TTEK. There were approximately 1,114 stockholders of record at October 2, 2022 .
The graph assumes that the value of an investment in our common stock and in each such index was $100 on October 2, 2016, and that all dividends have been reinvested . Dividends declared and paid in fiscal 2021 totaled $0.74 per share.
The graph assumes that the value of an investment in our common stock and in each such index was $100 on October 1, 2017, and that all dividends have been reinvested . Dividends declared and paid in fiscal 2022 totaled $0.86 per share.
We declared and paid dividends in the first and second quarters totaling $0.34 per share ($0.17 each quarter) on our common stock and paid dividends in the third and fourth quarters totaling $0.40 per share ($0.20 each quarter) on our common stock.
We declared and paid dividends in the first and second quarters totaling $0.40 per share ($0.20 each quarter) on our common stock and paid dividends in the third and fourth quarters totaling $0.46 per share ($0.23 each quarter) on o ur common stock.
In fiscal 2021, we repurchased and settled 479,369 shares with an average price of $125.16 per share for a total cost of $60.0 million in the open market. At October 3, 2021, we had a remaining balance of $147.8 million under our stock repurchase program.
In fiscal 2022, we repurchased and settled 1,341,679 shares with an average price of $149.07 per share for a total cost of $200.0 million in the open market. At October 2, 2022 , we had a remaining balance of $347.8 million under our stock repurchase program.
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Below is a summary of the stock repurchases that were traded and settled during the 12 months ended October 3, 2021: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Dollar Value that May Yet be Purchased Under the Plans or Programs (in thousands) September 28, 2020 - October 25, 2020 45,574 $ 102.67 45,574 $ 203,134 October 26, 2020 - November 22, 2020 46,975 110.67 46,975 197,935 November 23, 2020 - December 27, 2020 42,864 119.50 42,864 192,813 December 28, 2020 - January 24, 2021 33,790 125.46 33,790 188,574 January 25, 2021 - February 21, 2021 37,992 132.50 37,992 183,540 February 22, 2021 - March 28, 2021 42,519 134.69 42,519 177,813 March 29, 2021 - April 25, 2021 32,405 136.36 32,405 173,394 April 26, 2021 - May 23, 2021 41,534 125.17 41,534 168,195 May 24, 2021 - June 27, 2021 44,524 120.88 44,524 162,813 June 28, 2021 - July 25, 2021 32,956 123.77 32,956 158,734 July 26, 2021 - August 29, 2021 44,543 134.67 44,543 152,736 August 30, 2021 - October 3, 2021 33,693 146.10 33,693 147,813
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Below is a summary of the stock repurchases that were traded and settled during the 12 months ended October 2, 2022: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Dollar Value that May Yet be Purchased Under the Plans or Programs (in thousands) October 4, 2021 - October 31, 2021 97,020 $ 160.47 97,020 $ 532,244 November 1, 2021 - November 28, 2021 91,216 180.16 91,216 515,811 November 29, 2021 - January 2, 2022 101,960 176.52 101,960 497,813 January 3, 2022 - January 30, 2022 96,908 149.98 96,908 483,279 January 31, 2022 - February 27, 2022 110,858 146.53 110,858 467,036 February 28, 2022 - April 3, 2022 120,274 159.82 120,274 447,813 April 4, 2022 - May 1, 2022 95,121 152.79 95,121 433,279 May 2, 2022 - May 29, 2022 131,962 129.57 131,962 416,181 May 30, 2022 - July 3, 2022 140,961 130.30 140,961 397,813 July 4, 2022 - July 31, 2022 103,723 140.12 103,723 383,280 August 1, 2022 - August 28, 2022 115,677 147.81 115,677 366,182 August 29, 2022 - October 2, 2022 135,999 135.06 135,999 347,813

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeOn January 27, 2020, the Board of Directors authorized a $200 million stock repurchase program, which was included in our remaining balance of $207.8 million as of fiscal 2020 year-end. In fiscal 2021, we repurchased and settled 479,369 shares with an average price of $125.16 per share for a total cost of $60.0 million in the open market.
Biggest changeIn fiscal 2022, we repurchased and settled 1,341,679 shares with an average price of $149.07 per share for a total cost of $200.0 million in the open market. At October 2, 2022 , we had a remaining balance of $347.8 million under our stock repurchase program.
GAAP and industry practice, are included in our revenue when it is our contractual responsibility to procure or manage these activities. Because subcontractor services can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of our business trends.
GAAP and industry practice, are included in our revenue when it is our contractual responsibility to procure or manage these activities. Because subcontractor services can vary significantly from project to project and period to period, changes in revenue may not necessarily be indicative of our business trends.
On October 5, 2021, the Board of Directors authorized a new stock repurchase program under which we could repurchase up to $400 million of our common stock in addition to the $147.8 million remaining under the previous stock repurchase program at October 3, 2021.
On October 5, 2021, our Board of Directors authorized a new stock repurchase program under which we could repurchase up to $400 million of our common stock in addition to the $147.8 million remaining under the previous stock repurchase program at October 3, 2021.
We perform interim goodwill impairment reviews between our annual reviews if certain events and circumstances have occurred, including a deterioration in general economic conditions, an increased competitive environment, a change in management, key personnel, strategy or customers, negative or declining cash flows, or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods (se e Note 6, "Goodwill and Intangible Assets" of the "Notes to Consolidated Financial Statements" in Item 8 for further discussion).
We perform interim goodwill impairment reviews between our annual reviews if certain events and circumstances have occurred, including a deterioration in general economic conditions, an increased competitive environment, a change in 47 management, key personnel, strategy or customers, negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods (se e Note 6, "Goodwill and Intangible Assets" of the "Notes to Consolidated Financial Statements" in Item 8 for further discussion).
Factors considered in determining whether revenue associated with 49 claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in our performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable.
Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in our performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable.
In those cases where costs exceed the 48 remaining amounts payable under the contract, we may have recourse to third parties, such as owners, co-venturers, subcontractors or vendors, for claims. • In the ordinary course of business, our clients may request that we obtain surety bonds in connection with contract performance obligations that are not required to be recorded in our consolidated balance sheets.
In those cases where costs exceed the remaining amounts payable under the contract, we may have recourse to third parties, such as owners, co-venturers, subcontractors or vendors, for claims. • In the ordinary course of business, our clients may request that we obtain surety bonds in connection with contract performance obligations that are not required to be recorded in our consolidated balance sheets.
We utilize actuarial analyses to assist in determining the level of accrued liabilities to establish for our employee medical and workers' compensation self-insurance claims that are known and have been asserted against us, as well as for self-insurance claims that are believed to have been incurred based on actuarial analyses but have not yet been reported to our claims 50 administrators at the balance sheet date.
We utilize actuarial analyses to assist in determining the level of accrued liabilities to establish for our employee medical and workers' compensation self-insurance claims that are known and have been asserted against us, as well as for self-insurance claims that are believed to have been incurred based on actuarial analyses but have not yet been reported to our claims administrators at the balance sheet date.
Both EPS and adjusted EPS were calculated using diluted weighted-average common shares outstanding for the respective periods as reflected in our consolidated statements of income. During the second quarter of fiscal 2020, we took actions in response to the COVID-19 pandemic to ensure the health and safety of our employees, clients, and communities.
Both EPS and adjusted EPS were calculated using diluted weighted-average common shares outstanding for the respective periods as reflected in our consolidated statements of income. 39 During the second quarter of fiscal 2020, we took actions in response to the COVID-19 pandemic to ensure the health and safety of our employees, clients and communities.
Excluding the impact of the fiscal 2021 non-recurring tax items, the non-deductible goodwill impairment charge, and the excess tax benefits on share-based payments, our effective tax rates in fiscal 2021 and 2020 were 25.7% and 25.6%, respectively. Our EPS was $4.26 in fisc al 2021, compared to $3.16 in fiscal 2020.
Excluding the impact of the fiscal 2021 non-recurring tax items, the non-deductible goodwill impairment charge and the excess tax benefits on share-based payments, our effective tax rates in fiscal 2021 and 2020 were 25.7% and 25.6%, respectively. 40 Our EPS was $4.26 in fisc al 2021, compared to $3.16 in fiscal 2020.
Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. Incom e Taxes 52 We file a consolidated U.S. federal income tax return. In addition, we file other returns that are required in the states, foreign jurisdictions and other jurisdictions in which we do business.
Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. Incom e Taxes We file a consolidated U.S. federal income tax return. In addition, we file other returns that are required in the states, foreign jurisdictions and other jurisdictions in which we do business.
For those performance obligations for which revenue is recognized using a cost-to-cost measure of progress method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made.
For those performance obligations for which revenue is recognized using a cost-to- 46 cost measure of progress method, changes in total estimated costs, and related progress towards complete satisfaction of the performance obligation, are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made.
The contingent earn-out arrangements are based upon our valuations of the acquired companies and reduce the risk of overpaying for acquisitions if the projected financial results are not achieved. The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates.
The contingent earn-out arrangements are based upon our valuations of the acquired companies and reduce the risk of overpaying for acquisitions if the projected financial results are not achieved. 48 The fair values of these earn-out arrangements are included as part of the purchase price of the acquired companies on their respective acquisition dates.
The Amended Credit Agreement contains certain affirmative and restrictive covenants, and customary events of default. The financial covenants provide for a maximum Consolidated Leverage Ratio of 3.00 to 1.00 (total funded debt/EBITDA, as defined in the Amended Credit Agreement) and a minimum Consolidated Interest Coverage Ratio of 3.00 to 1.00 (EBITDA/Consolidated Interest Charges, as defined in the Amended Credit Agreement).
The Amended Credit Agreement contains certain affirmative and restrictive covenants, and customary events of default. The financial covenants provide for a maximum Consolidated Leverage Ratio of 3.25 to 1.00 (total funded debt/EBITDA, as defined in the Amended Credit Agreement) and a minimum Consolidated Interest Coverage Ratio of 3.00 to 1.00 (EBITDA/Consolidated Interest Charges, as defined in the Amended Credit Agreement).
We believe our operations have not been, and, in the foreseeable future, are not expected to be, materially adversely affected by inflation or changing prices due to the average duration of our projects and our ability to negotiate prices as contracts end and new contracts begin. 47 Dividends.
We believe our operations have not been, and, in the foreseeable future, are not expected to be, materially adversely affected by inflation or changing prices due to the average duration of our projects and our ability to negotiate prices as contracts end and new contracts begin. Dividends.
Fiscal Year Ended October 3, 2021 September 27, 2020 Change $ % Income from operations $ 278,701 $ 241,091 $ 37,610 15.6 Earn-out adjustments (3,273) (13,371) 10,098 NM COVID-19 — 8,233 (8,233) NM Non-core dispositions — (8,525) 8,525 NM Impairment of goodwill — 15,800 (15,800) NM Adjusted income from operations (1) $ 275,428 $ 243,228 $ 32,200 13.2 EPS $ 4.26 $ 3.16 $ 1.10 34.8 Earn-out adjustments (0.04) (0.18) 0.14 NM COVID-19 — 0.11 (0.11) NM Non-core dispositions — (0.12) 0.12 NM Impairment of goodwill — 0.29 (0.29) NM Non-recurring tax items (0.43) — (0.43) NM Adjusted EPS (1) $ 3.79 $ 3.26 $ 0.53 16.3 NM = not meaningful (1) Non-U.S.
Fiscal Year Ended October 3, 2021 September 27, 2020 Change $ % Income from operations $ 278,701 $ 241,091 $ 37,610 15.6 Earn-out adjustments (3,273) (13,371) 10,098 NM COVID-19 — 8,233 (8,233) NM Non-core dispositions — (8,525) 8,525 NM Impairment of goodwill — 15,800 (15,800) NM Adjusted income from operations (1) $ 275,428 $ 243,228 $ 32,200 13.2 EPS $ 4.26 $ 3.16 $ 1.10 34.8 Earn-out adjustments (0.04) (0.18) 0.14 NM COVID-19 — 0.11 (0.11) NM Non-core dispositions — (0.12) 0.12 NM Impairment of goodwill — 0.29 (0.29) NM Non-recurring tax benefits (0.43) — (0.43) NM Adjusted EPS (1) $ 3.79 $ 3.26 $ 0.53 16.3 NM = not meaningful (1) Non-U.S.
The decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations may impact the amount of revenue recorded in a given period. Contracts are considered to have a single performance obligation if the promises are not separately identifiable from other promises in the contracts.
The decision to combine a group of contracts or separate a combined or single contract into multiple performance obligations may impact the amount of revenue recorded in a given 45 period. Contracts are considered to have a single performance obligation if the promises are not separately identifiable from other promises in the contracts.
Under this method, valuation multiples are (i) derived from the operating data of selected guideline companies; 51 (ii) evaluated and adjusted based on the strengths and weaknesses of the reporting units relative to the selected guideline companies; and (iii) applied to the operating data of the reporting unit to arrive at an indication of value.
Under this method, valuation multiples are (i) derived from the operating data of selected guideline companies; (ii) evaluated and adjusted based on the strengths and weaknesses of the reporting units relative to the selected guideline companies; and (iii) applied to the operating data of the reporting unit to arrive at an indication of value.
Off-Balance Sheet Arrangements In the ordinary course of business, we may use off-balance sheet arrangements if we believe that such arrangements would be an efficient way to lower our cost of capital or help us manage the overall risks of our business operations.
Off-Balance Sheet Arrangements 44 In the ordinary course of business, we may use off-balance sheet arrangements if we believe that such arrangements would be an efficient way to lower our cost of capital or help us manage the overall risks of our business operations.
We also performed an interim goodwill impairment review of our ASP reporting unit in September 2020 and recorded a $15.8 million goodwill impairment 45 charge. The impaired goodwill related to our acquisitions of Coffey International Limited ("Coffey") and NDY.
We also performed an interim goodwill impairment review of our ASP reporting unit in September 2020 and recorded a $15.8 million goodwill impairment charge. The impaired goodwill related to our acquisitions of Coffey International Limited ("Coffey") and NDY.
The improved operating margin was primarily due to our increased focus on high-end consulting services and improved labor utilization. 39 Remediation and Construction Management ("RCM") Fiscal Year Ended October 3, 2021 September 27, 2020 Change $ % ($ in thousands) Revenue $ 613 $ 198 $ 415 NM Subcontractor costs (25) (221) 196 NM Revenue, net of subcontractor costs $ 588 $ (23) $ 611 NM Loss from operations $ — $ — $ — NM NM = not meaningful RCM's projects were substantially complete at the end of fiscal 2018.
The improved operating margin was primarily due to our increased focus on high-end consulting services and improved labor utilization. 41 Remediation and Construction Management ("RCM") Fiscal Year Ended October 3, 2021 September 27, 2020 Change $ % ($ in thousands) Revenue $ 613 $ 198 $ 415 NM Subcontractor costs (25) (221) 196 NM Revenue, net of subcontractor costs $ 588 $ (23) $ 611 NM Loss from operations $ — $ — $ — NM NM = not meaningful RCM's projects were substantially complete at the end of fiscal 2018.
We had no reporting units that had estimated fair values that exceeded their carrying values by less than 150%. On September 2, 2020, Australia announced that it had fallen into economic recession, defined as two consecutive quarters of negative growth, for the first time since 1991 including 7% negative growth in the quarter ending in June 2020.
We had no reporting units that had estimated fair values that exceeded their carrying values by less than 165%. On September 2, 2020, Australia announced that it had fallen into economic recession, defined as two consecutive quarters of negative growth, for the first time since 1991 including 7% negative growth in the quarter ending in June 2020.
As a result of the impairment charge, the estimated fair value of our ASP reporting unit equals its carrying value of $144.9 million, including $95.5 million of goodwill, at September 27, 2020 . On September 28, 2020 (the first day of our fiscal 2021), we merged our former ASP reporting unit into our Client Account Management reporting unit.
As a result of the impairment charge, the estimated fair value of our ASP reporting unit equaled its carrying value of $144.9 million, including $95.5 million of goodwill, at September 27, 2020 . On September 28, 2020 (the first day of our fiscal 2021), we merged our former ASP reporting unit into our Client Account Management reporting unit.
Fiscal 2020 and 2019 Impairment of Goodwill On September 2, 2020, Australia announced that it had fallen into economic recession, defined as two consecutive quarters of negative growth, for the first time since 1991 including 7% negative growth in the quarter ending in June 2020.
Fiscal 2020 Impairment of Goodwill On September 2, 2020, Australia announced that it had fallen into economic recession, defined as two consecutive quarters of negative growth, for the first time since 1991 including 7% negative growth in the quarter ending in June 2020.
Further, our fiscal 2020 operating income reflects a non-cash goodwill impairment charge of $15.8 million, which is described below under "Fiscal 2020 and 2019 Impairment of Goodwill." Excluding these items, our adjusted operating income increased $32.2 million, or 13.2%, in fiscal 2021 compared to fiscal 2020.
Further, our fiscal 2020 operating income reflects a non-cash goodwill impairment charge of $15.8 million, which is described below under "Fiscal 2020 Impairment of Goodwill." Excluding these items, our adjusted operating income increased $32.2 million, or 13.2%, in fiscal 2021 compared to fiscal 2020.
At contract inception, we assess the goods or services promised in a contract and identify, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the “unit of account” for purposes of determining revenue recognition.
At contract inception, we assess the goods or services promised in a contract and identify, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the “units of account” for purposes of determining revenue recognition.
GAAP financial measure, enhances investors' ability to analyze our business trends and performance because it substantially measures the work performed by our employees. In the course of providing services, we routinely subcontract various services and, under certain USAID programs, issue grants. Generally, these subcontractor costs and grants are passed through to our clients and, in accordance with U.S.
GAAP financial measure, enhances investors' ability to analyze our business trends and performance because it substantially measures the work performed by our employees. In the course of providing services, we routinely subcontract various services and, under certain international development programs, issue grants. Generally, these subcontractor costs and grants are passed through to our clients and, in accordance with U.S.
Operating income increased $17.7 million in fiscal 2021 compared to fiscal 2020 primarily due to revenue growth. Additionally, we realized gains of $8.5 million from the disposition of non-core equipment related to our Canadian turn-key pipeline activities, partially offset by $6.6 million of incremental costs for actions to respond to the COVID-19 pandemic in fiscal 2020.
Operating income increased $15.8 million in fiscal 2021 compared to fiscal 2020 primarily due to revenue growth. Additionally, we realized gains of $8.5 million from the disposition of non-core equipment related to our Canadian turn-key pipeline activities, partially offset by $6.6 million of incremental costs for actions to respond to the COVID-19 pandemic in fiscal 2020.
The revenue growth in fiscal 2021 primarily reflects increased infrastructure activity in Canada and fewer restrictions related to the COVID-19 pandemic in the second half of fiscal 2021 . The increases also reflect contributions from acquisitions, which did not have comparable revenue in the prior fiscal year, partially offset by the disposal of our Canadian turn-key pipeline activities.
The revenue growth in fiscal 2021 primarily reflects increased infrastructure activity in Canada and fewer restrictions related to the COVID-19 pandemic in the second half of fiscal 2021. The increases also reflect contributions from acquisitions, which did not have comparable revenue in fiscal 2020, partially offset by the disposal of our Canadian turn-key pipeline activities.
Our obligations under the Amended Credit Agreement are guarant eed by certain of our domestic subsidiaries and are secured by first priority liens on (i) the equity interests of certain of our subsidiaries, including those subsidiaries that are guarantors or borrowers under the Amended Credit Agreement, and (ii) the accounts receivable, general intangibles and intercompany loans, and those of our subsidiaries that are guarantors or borrowers.
Our obligations under the Amended Credit Agreement are guaranteed by certain of our domestic subsidiaries and are secured by first priority liens on (i) the equity interests of certain of our subsidiaries, including those subsidiaries that are guarantors or borrowers under the Amended Credit Agreement, and (ii) the accounts receivable, general intangibles and intercompany loans, and those of our subsidiaries that are guarantors or borrowers.
If we default on the Amended Credit Agreement or additional credit facilities, our inability to issue or renew standby letters of credit and bank guarantees would impair our ability to maintain normal operations.
If we default on t he Amended Credit Agreement or additional credit facilities, our inability to issue or renew standby letters of credit and bank guarantees would impair our ability to maintain normal operations.
We expect these trends and the related growth in our international work to continue in fiscal 2022. 36 RESULTS OF OPERATIONS Fiscal 2021 Compared to Fiscal 2020 Consolidated Results of Operations Fiscal Year Ended October 3, 2021 September 27, 2020 Change $ % ($ in thousands) Revenue $ 3,213,513 $ 2,994,891 $ 218,622 7.3% Subcontractor costs (661,341) (646,319) (15,022) (2.3) Revenue, net of subcontractor costs (1) 2,552,172 2,348,572 203,600 8.7 Other costs of revenue (2,053,772) (1,902,037) (151,735) (8.0) Gross profit 498,400 446,535 51,865 11.6 Selling, general and administrative expenses (222,972) (204,615) (18,357) (9.0) Contingent consideration – fair value adjustments 3,273 14,971 (11,698) (78.1) Impairment of goodwill — (15,800) 15,800 NM Income from operations 278,701 241,091 37,610 15.6 Interest expense – net (11,831) (13,100) 1,269 9.7 Income before income tax expense 266,870 227,991 38,879 17.1 Income tax expense (34,039) (54,101) 20,062 37.1 Net income 232,831 173,890 58,941 33.9 Net income attributable to noncontrolling interests (21) (31) 10 32.3 Net income attributable to Tetra Tech $ 232,810 $ 173,859 $ 58,951 33.9 Diluted earnings per share $ 4.26 $ 3.16 $ 1.10 34.8 (1) We believe that the presentation of "Revenue, net of subcontractor costs", which is a non-U.S.
There were no significant operating activities in RCM for fiscal 2022 and 2021. 38 Fiscal 2021 Compared to Fiscal 2020 Consolidated Results of Operations Fiscal Year Ended October 3, 2021 September 27, 2020 Change $ % ($ in thousands) Revenue $ 3,213,513 $ 2,994,891 $ 218,622 7.3% Subcontractor costs (661,341) (646,319) (15,022) (2.3) Revenue, net of subcontractor costs (1) 2,552,172 2,348,572 203,600 8.7 Other costs of revenue (2,053,772) (1,902,037) (151,735) (8.0) Gross profit 498,400 446,535 51,865 11.6 Selling, general and administrative expenses (222,972) (204,615) (18,357) (9.0) Contingent consideration – fair value adjustments 3,273 14,971 (11,698) (78.1) Impairment of goodwill — (15,800) 15,800 NM Income from operations 278,701 241,091 37,610 15.6 Interest expense – net (11,831) (13,100) 1,269 9.7 Income before income tax expense 266,870 227,991 38,879 17.1 Income tax expense (34,039) (54,101) 20,062 37.1 Net income 232,831 173,890 58,941 33.9 Net income attributable to noncontrolling interests (21) (31) 10 32.3 Net income attributable to Tetra Tech $ 232,810 $ 173,859 $ 58,951 33.9 Diluted earnings per share $ 4.26 $ 3.16 $ 1.10 34.8 (1) We believe that the presentation of "Revenue, net of subcontractor costs", which is a non-U.S.
At October 3, 2021, we had $449.3 million of available credit under the Amended Revolving Credit Facility, all of which could be borrowed without a violation of our debt covenants. Commitment fees related to our revolving credit facilities were $0.7 million each year for fiscal 2021 , 2020 and 2019, respectively.
At October 2, 2022, we had $484.3 million of available credit under the Amended Revolving Credit Facility, all of which could be borrowed without a violation of our debt covenants. Commitment fees related to our revolving credit facilities were $0.7 million each year for fiscal 2022, 2021 and 2020, respectively.
This prompted a strategic review of our Asia/Pacific ("ASP") reporting unit, which is in our CIG reportable segment. As a result of the economic recession in Australia, our revenue growth and profit margin forecasts for the ASP reporting unit declined from the previous forecast used for our annual goodwill impairment review as of June 29, 2020.
That trend prompted a strategic review of our Asia/Pacific ("ASP") reporting unit, which was in our CIG reportable segment. As a result of the economic recession in Australia, our revenue growth and profit margin forecasts for the ASP reporting unit declined from the previous forecast used for our annual goodwill impairment review as of June 29, 2020.
We enter into these agreements primarily to support the project execution commitments of these entities. The potential payment amount of an outstanding performance guarantee is typically the remaining cost of work to be performed by or on behalf of third parties under engineering an d construction contrac ts.
We enter into these agreements primarily to support the project execution commitments of these entities. The potential payment amount of an outstanding performance guarantee is typically the remaining cost of work to be performed by or on behalf of third parties under engineering and construction contracts.
These increases primarily reflect higher U.S. state and local government activities related to water and environmental programs, and disaster response. The increases also reflect contributions from acquisitions, which did not have comparable revenue in the prior fiscal year. Operating income increased $26.6 million in fiscal 2021 compared to fiscal 2020 primarily reflecting the revenue growth.
These increases primarily reflect higher U.S. state and local government activities related to water and environmental programs and disaster response. The increases also reflect contributions from acquisitions, which did not have comparable revenue in fiscal 2020. Operating income increased $28.5 million in fiscal 2021 compared to fiscal 2020 primarily reflecting the revenue growth.
In each case, the applicable margin is based on our Consolidated Leverage Ratio, calculated quarterly. The Amended Term Loan Facility is subject to the same interest rate provisions. The Amended Credit Agreement expires on July 30, 2023, or earlier at our discretion upon payment in full of loans and other obligations.
In each case, the applicable margin is based on our Consolidated Leverage Ratio, calculated quarterly. The Amended Term Loan Facility is subject to the same interest rate provisions. The Amended Credit Agreement expires on February 18, 2027, or earlier at our discretion upon payment in full of loans and other obligations.
In addition, we incurred $1.6 million of incremental costs for actions to respond to the COVID-19 pandemic in the second quarter of fiscal 2020. Our operating margin, based on revenue, net of subcontractor costs, improved to 13.7% in fiscal 2021 compared to 13.0% last fiscal year. Excluding the COVID-19 charges, our operating margin was 13.1% in fiscal 2020.
In addition, we incurred $1.6 million of incremental costs for actions to respond to the COVID-19 pandemic in the second quarter of fiscal 2020. Our operating margin, based on revenue, net of subcontractor costs, improved to 13.8% in fiscal 2021 compared to 13.1% fiscal 2020. Excluding the COVID-19 charges, our operating margin was 13.2% in fiscal 2020.
Excluding these disposition gains and the COVID-19 charges, operating income increased $19.6 million in fiscal 2021 compared to fiscal 2020. Our operating margin, based on revenue, net of subcontractor costs, improved to 11.6% in fiscal 2021 compared to 10.9% last fiscal year. Excluding the disposition gains and COVID-19 charges, our operating margin was 10.7% in fiscal 2020.
Excluding these disposition gains and the COVID-19 charges, operating income increased $17.7 million in fiscal 2021 compared to fiscal 2020. Our operating margin, based on revenue, net of subcontractor costs, improved to 11.8% in fiscal 2021 compared to 11.1% fiscal 2020. Excluding the disposition gains and COVID-19 charges, our operating margin was 10.9% in fiscal 2020.
Our last review at June 28, 2021 (i.e. the first day of our fourth quarter in fiscal 2021), indicated that we had no impairment of goodwill, and all of our reporting units had estimated fair values that were in excess of their carrying values, including goodwill.
Our last review at July 4, 2022 (i.e. the first day of our fourth quarter in fiscal 2022), indicated that we had no impairment of goodwill, and all of our reporting units had estimated fair values that were in excess of their carrying values, including goodwill.
This prompted a strategic review of our ASP reporting unit, which is in our CIG reportable segment. As a result of the economic recession in Australia, our revenue growth and profit margin forecasts for the ASP reporting unit declined from the previous forecast used for our annual goodwill impairment review as of June 29, 2020.
That trend prompted a strategic review of our Asia/Pacific ("ASP") reporting unit, which was in our CIG reportable segment. As a result of the economic recession in Australia, our revenue growth and profit margin forecasts for the ASP reporting unit declined from the previous forecast used for our annual goodwill impairment review as of June 29, 2020.
Our CIG segment's revenue increased $59.6 million, or 4.7%, and revenue, net of subcontractor costs, increased $82.7 million, or 7.9% in fiscal 2021 compared to fiscal 2020. Our fiscal 2021 results for our GSG and CIG segments are described below under "Government Services Group" and "Commercial/International Services Group", respectively. The following table reconciles our reported results to non-U.S.
Our CIG segment's revenue increased $29.0 million, or 2.0%, and revenue, net of subcontractor costs, increased $54.7 million, or 4.4% in fiscal 2021 compared to fiscal 2020. Our fiscal 2021 results for our GSG and CIG segments are described below under "Government Services Group" and "Commercial/International Services Group", respectively. The following table reconciles our reported results to non-U.S.
At this time, we also determined that our remaining undistributed earnings in Canada of approximately $20.1 million are no longer being indefinitely reinvested and recorded an additional deferred tax liability/expense of $3.1 mill ion.
At that time, we also determined that our remaining undistributed earnings in Canada of approximately $20.1 million were no longer being indefinitely reinvested and recorded an additional deferred tax 42 liability/expense of $3.1 million.
At October 3, 2021, we had $0.7 million in standby letters of credit outstanding under our Amended Credit Agreement and $53.4 million in standby letters of credit outstanding under our additional letter of credit facilities. • From time to time, we provide guarantees and indemnifications related to our services.
At October 2, 2022, we had $0.7 million in standby letters of credit outstanding under our Amended Credit Agreement and $44.4 million in standby letters of credit outstanding under our additional letter of credit facilities. • From time to time, we provide guarantees and indemnifications related to our services.
Based on future operating results in certain jurisdictions, it is unlikely that the current valuation allowance positions of those jurisdictions could be adjusted in the next 12 months. As of October 3, 2021 and September 27, 2020, the liability for income taxes associated with uncertain tax positions was $14.1 million and $9.7 million, respectively.
Based on future operating results in certain jurisdictions, it is unlikely that the current valuation allowance positions of those jurisdictions could be adjusted in the next 12 months. As of October 2, 2022 and October 3, 2021, the liability for income taxes associated with uncertain tax positions was $10.6 million and $14.1 million, respectively.
We may borrow on the Amended Revolving Credit Facility, at our option, at either (a) a Eurocurrency rate plus a margin that ranges from 1.00% to 1.75% per annum, or (b) a base rate for loans in U.S. dollars (the highest of the U.S. federal funds rate plus 0.50% per annum, the bank’s prime rate or the Eurocurrency rate plus 1.00%) plus a margin that ranges from 0% to 0.75% per annum.
We may borrow on the Amended Revolving Credit Facility, at our option, at either (a) a benchmark rate plus a margin that ranges from 1.000% to 1.875% per annum, or (b) a base rate for loans in U.S. dollars (the highest of the U.S. federal funds rate plus 0.50% per annum, the bank’s prime rate or the Secured Overnight Financing Rate ("SOFR") rate plus 1.00%, plus a margin that ranges from 0% to 0.875% per annum.
At October 3, 2021, undistributed earnings of our other foreign subsidiaries, primarily in Australia and the U.K. of approximately $50.9 million are expected to be indefinitely reinvested in these foreign countries. Accordingly, no provision for foreign withholding taxes has been made.
At October 2, 2022, undistributed earnings of our other foreign subsidiaries, primarily in Australia and the U.K. of approximately $81.7 million are expected to be indefinitely reinvested in these foreign countries. Accordingly, no provision for foreign withholding taxes has been made.
At October 3, 2021, we were in compliance with these covenants with a consolidated leverage ratio of 0.87x and a consolidated interest coverage ratio of 26.38x. In addition to the Amended Credit Agreement, we maintain other credit facilities, which may be used for bank overdrafts, short-term cash advances and bank guarantees.
At October 2, 2022, we were in compliance with these covenants with a consolidated leverage ratio of 0.76x and a consolidated interest coverage ratio of 29.52x. In addition to the Amended Credit Agreement, we maintain other credit facilities, which may be used for short-term cash advances and bank guarantees.
The Amended Revolving Credit Facility includes a $100 million sublimit for the issuance of standby letters of credit, a $20 million sublimit for swingline loans, and a $200 million sublimit for multicurrency borrowings and letters of credit. The entire Amended Term Loan Facility was drawn on July 30, 2018.
The Amended Revolving Credit Facility includes a $100 million sublimit for the issuance of standby letters of credit, a $20 million sublimit for swingline loans and a $300 million sublimit for multicurrency borrowings and letters of credit. The entire Amended Term Loan Facility was drawn on February 18, 2022.
Our primary uses of cash are to fund working capital, capital expenditures, stock repurchases, cash dividends and repayment of debt, as well as to fund acquisitions and earn-out obligations from prior acquisitions.
Our primary sources of liquidity are cash flows from operations and borrowings under our credit facilities. Our primary uses of cash are to fund working capital, stock repurchases, cash dividends, capital expenditures and repayment of debt, as well as to fund acquisitions and earn-out obligations from prior acquisitions.
The Amended Credit Agreement allows us to, among other things, (i) refinance indebtedness under our Credit Agreement dated as of May 7, 2013; (ii) finance certain permitted open market repurchases of our common stock, permitted acquisitions, and cash dividends and distributions; and (iii) utilize the proceeds for working capital, capital expenditures and other general corporate purposes.
The Amended Credit Agreement provides for, among other things, (i) refinance indebtedness under our Credit Agreement dated as of July 30, 2018; (ii) finance open market repurchases of common stock, acquisitions and cash dividends and distributions; and (iii) utilize the proceeds for working capital, capital expenditures and other general corporate purposes.
On the same basis as our adjusted operating income and excluding non-recurring tax benefits in fiscal 2019, EPS was $3.26 in fiscal 2020, compared to $3.17 in fiscal 2019.
On the same basis as our adjusted operating income and excluding non-recurring tax benefits in fiscal 2021, EPS was $3.79 in fiscal 2021, compared to $3.26 fiscal 2020, an increase of 16.3%.
At October 3, 2021, there was no outstanding borrowings under these facilities and the aggregate amount of standby letters of credit outstanding was $53.4 million. As of October 3, 2021, we had no bank overdrafts related to our disbursement bank accounts. Inflation.
At October 2, 2022, there were no outstanding borrowings under these facilities, and the aggregate amount of standby letters of credit outstanding was $44.4 million. As of October 2, 2022, we had no bank overdrafts related to our disbursement bank accounts. Subsequent Event.
The effective tax rates for fiscal 2021 and 2020 were 12.8% and 23.7 %, respectively. Our fiscal 2021 effective tax rate reflects a non-recurring net tax benefit of $21.6 million primarily consisting of valuation allowances in the United Kingdom that were released due to sufficient sustainable profitability being achieved in fiscal 2021.
The effective tax rates for fiscal 2021 and 2020 were 12.8% and 23.7 %, respectively. Our fiscal 2021 effective tax rate reflects the aforementioned non-recurring net tax benefit of $21.6 million primarily consisting of a valuation allowance in the United Kingdom.
Excluding the net contributions from acquisitions and the impact of the disposal of our Canadian turn-key pipeline activities, our revenue increased 3.2% in fiscal 2021 compared to last fiscal year. Our GSG segment's revenue and revenue, net of subcontractor costs, increased $164.0 million, or 9.2%, and $120.3 million, or 9.3%, respectively, in fiscal 2021 compared to the prior fiscal year.
Excluding the net contributions from acquisitions and the impact of the disposal of our Canadian turn-key pipeline activities, our revenue increased 3.2% in fiscal 2021 compared to fiscal 2020. Our GSG segment's revenue and revenue, net of subcontractor costs, increased $194.6 million, or 12.3%, and $148.3 million, or 13.3%, respectively, in fiscal 2021 compared to fiscal 2020.
In addition, we had $0.7 million in standby letters of credit under the Amended Credit Agreement. Our weighted-average interest rate on borrowings outstanding during fiscal 2021 under the Amended Credit Agreement, including the effects of interest rate swap agreements described in Note 14, “Derivative Financial Instruments” of the "Notes to Consolidated Financial Statements" included in Item 8, was 3.30%.
Our year-to-date weighted-average interest rate on borrowings outstanding during fiscal 2022 under the Amended Credit Agreement, including the effects of interest rate swap agreements described in Note 14, “Derivative Financial Instruments” of the "Notes to Consolidated 43 Financial Statements" included in Item 8, was 3.60%.
Our U.S. state and local government revenue increased 22.2% i n fiscal 2021 compared to last fiscal year. The increase reflects continued broad-based growth in our U.S. state and local government project-related infrastructure business, particularly with increased revenue from municipal water infrastructure work in the metropolitan areas of California, Texas, and Florida.
The increase reflects continued broad-based growth in our U.S. state and local government infrastructure business, particularly with increased revenue from municipal water infrastructure work, including digital water projects, in the metropolitan areas of California, Texas and Florida. Our disaster response activities also increased compared to fiscal 2021.
Our Board of Directors has authorized the following dividends: Dividend Per Share Record Date Total Maximum Payment (in thousands) Payment Date November 9, 2020 $ 0.17 November 30, 2020 $ 9,198 December 11, 2020 January 25, 2021 $ 0.17 February 10, 2021 $ 9,212 February 26, 2021 April 26, 2021 $ 0.20 May 12, 2021 $ 10,831 May 28, 2021 July 26, 2021 $ 0.20 August 20, 2021 $ 10,800 September 3, 2021 November 15, 2021 $ 0.20 December 2, 2021 N/A December 20, 2021 Income Taxes We evaluate the realizability of our deferred tax assets by assessing the valuation allowance and adjust the allowance, if necessary.
Our Board of Directors has authorized the following dividends: Dividend Per Share Record Date Total Maximum Payment (in thousands) Payment Date November 15, 2021 $ 0.20 December 2, 2021 $ 10,793 December 20, 2021 January 31, 2022 $ 0.20 February 11, 2022 $ 10,769 February 25, 2022 May 2, 2022 $ 0.23 May 13, 2022 $ 12,311 May 27, 2022 August 1, 2022 $ 0.23 August 12, 2022 $ 12,226 August 26, 2022 November 7, 2022 $ 0.23 November 21, 2022 N/A December 9, 2022 Income Taxes We evaluate the realizability of our deferred tax assets by assessing the valuation allowance and adjust the allowance, if necessary.
On November 15, 2021, the Board of Directors also declared a quarterly cash dividend of $0.20 per share payable on December 20, 2021 to stockholders of record as of the close of business on December 2, 2021. Cash and Cash Equivalents.
On November 7, 2022, our Board of Directors declared a quarterly cash dividend of $0.23 per share payable on December 9, 2022 to stockholders of record as of the close of business on November 21, 2022. Cash and Cash Equivalents.
At September 27, 2020, there was a total maximum of $70.9 million of outstanding contingent consideration related to acquisitions. Of this amount, $32.6 million was estimated as the fair value and accrued on our consolidated balance sheet.
At October 3, 2021, there was a total maximum of $105.4 million of outstanding contingent consideration related to our acquisitions. Of this amount, $59.3 million was estimated as the fair value and accrued on our consolidated balance sheet at October 3, 2021.
Accordingly, we segregate subcontractor costs from revenue to promote a better understanding of our business by evaluating revenue exclusive of costs associated with external service providers. NM = not meaningful 41 In fiscal 2020, revenue and revenue, net of subcontractor costs, decreased $112.5 million, or 3.6%, and $41.1 million, or 1.7%, compared to fiscal 2019.
Accordingly, we segregate subcontractor costs from revenue to promote a better understanding of our business by evaluating revenue exclusive of costs associated with external service providers. NM = not meaningful In fiscal 2022, revenue and revenue, net of subcontractor costs, increased $290.5 million, or 9.0%, and $283.4 million, or 11.1%, respectively, compared to fiscal 2021.
The Amended Term Loan Facility is subject to quarterly amortization of principal at 5% annually beginning December 31, 2018.
The Amended Term Loan Facility is subject to quarterly amortization of principal at 5% annually commencing June 30, 2022.
Based on our assessment, we have concluded that a portion of the deferred tax assets at October 3, 2021, primarily loss carryforwards, will not be realized, and we have reserved accordingly.
Based on our assessment, we have concluded that a portion of the deferred tax assets at October 2, 2022, primarily loss carryforwards, will not be realized, and we have reserved accordingly. In fiscal 2022, the Inflation Reduction Act and the CHIPS and Science Act were signed into law.
As of October 3, 2021, cash and cash equivalents were $166.6 million, an increase of $9.1 million compared to the fiscal 2020 year-end. The increase was due to net cash provided by operating activities, partially offset by net repayments of long-term debt, stock repurchases, dividends, as well as payments for business acquisitions and contingent earn-out payments. Operating Activities.
As of October 2, 2022, cash and cash equivalents were $185.1 million, an increase of $18.5 million compared to the fiscal 2021 year-end. The increase was primarily due to net cash provided by operating activities, partially offset by stock repurchases, dividends, as well as payments for business acquisitions, contingent earn-outs and taxes on vested restricted stock. Operating Activities.
At October 3, 2021, we had $212.5 million in outstanding borrowings under the Amended Credit Agreement, which was comprised of $212.5 million under the Amended Term Loan Facility and no borrowings outstanding under the Amended Revolving Credit Facility. The weighted-average interest rate of the outstanding borrowings during fiscal 2021 was 1.25%.
At October 2, 2022, we had $258.8 million in outstanding borrowings under the Amended Credit Agreement, which was comprised of $243.8 million under the Amended Term Loan Facility and $15.0 million under the Amended Revolving Credit Facility. The year-to-date weighted-average interest rate of the outstanding borrowings during fiscal 2022 was 1.97%.
Conversely, income tax expense was reduced by $12.9 million and $8.3 million of excess tax benefits on share-based payments in fiscal 2021 and 2020, respectively.
The goodwill impairment charge in fiscal 2020 did not have related tax benefits, which increased our effective tax rate by 1.5% in fiscal 2020. Conversely, income tax expense was reduced by $12.9 million and $8.3 million of excess tax benefits on share-based payments in fiscal 2021 and 2020, respectively.
We believe that our existing cash and cash equivalents, operating cash flows and borrowing capacity under our credit agreement, as described below, will be sufficient to meet our capital requirements for at least the next 12 months including any additional resources needed to address the COVID-19 pandemic.
We believe that our existing cash and cash equivalents, operating cash flows and borrowing capacity under our credit agreement as amended in the anticipation of our planned acquisition of RPS in the second quarter of fiscal 2023, as described below, will be sufficient to meet our capital requirements for at least the next 12 months.
It is reasonably possible that the amount of the unrecognized benefit with respect to certain of our unrecognized tax positions may significantly decrease within the next 12 months. These changes would be the result of ongoing examinations.
It is reasonably possible that the amount of the unrecognized benefit with respect to certain of our unrecognized tax positions may significantly decrease within the next 12 months. These liabilities represent our current estimates of the additional tax liabilities that we may be assessed when the related audits are concluded.
Our disaster response activities also increased compared to fiscal 2020. Most of our work for U.S. state and local governments relates to critical water and environmental programs, which we expect to continue to grow next year.
Most of our work for the U.S. state and local governments relates to critical water and environmental programs, which we expect to continue to grow in fiscal 2023. U.S. Commercial. Our U.S. commercial revenue increased 17.4% i n fiscal 2022 compared to fiscal 2021.
The Amended Credit Agreement is a $700 million senior secured, five-year facility that provides for a $250 million term loan facility (the “Amended Term Loan Facility”), a $450 million revolving credit facility (the “Amended Revolving Credit Facility”), and a $300 million accordion feature that allows us to increase the Amended Credit Agreement to $1 billion subject to lender approval.
The Amended Credit Agreement is a $750 million senior secured, five-year facility that provides for a $250 million term loan facility (the “Amended Term Loan Facility”) and a $500 million revolving credit facility (the “Amended Revolving Credit Facility”).
As of October 3, 2021 , we h ad $166.6 million of cash and cash equivalents and access to an additional $749 million of borrowing capacity available under our credit facility. We generated $304.4 million of cash from operations in fiscal 2021.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Capital Requirements. As of October 2, 2022 , we h ad $185.1 million of cash and cash equivalents and access to an additional $784.3 million of borrowing available under our credit facility. We generated $336.2 million of cash from operations in fiscal 2022.
On July 30, 2018, we entered into a Second Ame nded and Restated Credit Agreement (“Amended Credit Agreement”) with a total borrowing capacity of $1 billion that will mature in July 2023.
On February 18, 2022, we entered into Amendment No. 2 to our Second Amended and Restated Credit Agreement (“Amended Credit Agreement”) with a total borrowing capacity of $1.05 billion that will mature in February 2027.
In fiscal 2021, net cash provided by operating activities was $304.4 million compared to $262.5 million in fiscal 2020. The increase primarily reflects an increase in earnings adjusted for non-cash items of $24.1 million and improved working capital from faster collections of our accounts receivable in fiscal 2021 compared to the prior fiscal year. Investing Activities.
Cash provided by operating activities increased 10.5% from $304.4 million in fiscal 2021 to $336.2 million in fiscal 2022. The increase primarily reflects higher earnings and improved working capital from faster collections of our receivables in fiscal 2022 compared to fiscal 2021. Investing Activities.
Our international revenue increased 7.9% in f iscal 2021 compared to fiscal 2020. The revenue growth primarily reflects government stimulus spending on infrastructure, increased commercial activity related to new regulatory requirements for sustainability, and fewer restrictions related to the COVID-19 pandemic . Our revenue also includes contributions from acquisitions that did not contribute to our revenue in fiscal 2020.
Our international revenue increased 13.6% in f iscal 2022 compared to fiscal 2021. Our revenue includes contributions from acquisitions that did not have comparable revenue in fiscal 2021. Additionally, the revenue growth reflects government stimulus spending on infrastructure and commercial activities related to an increased focus on sustainability .
Although the charges were recognized in the second quarter of fiscal 2020, substantially all of these costs were paid in cash in the third quarter of fiscal 2020.
Although the charges were recognized in the second quarter of fiscal 2020, substantially all of these costs were paid in cash in the third quarter of fiscal 2020. Some of these costs were related to the $6.5 million benefit of ERC's, which were applied for in fiscal 2020 and subsequently received and recognized in fiscal 2022.
Excluding these items, the effective tax rates applied to the adjustments in fiscal 2020 and 2019 were 24% and 26%, respectively. We applied the relevant marginal statutory tax rate based on the nature of the adjustments and tax jurisdiction in which they occur.
Our adjusted EPS for fiscal 2021 also excludes non-recurring tax items. The effective tax rates applied to the adjustments to EPS to arrive at adjusted EPS average 26% and 25% for fiscal 2022 and 2021, respectively. We applied the relevant marginal statutory tax rate based on the nature of the adjustments and the tax jurisdiction in which it occurred.
At October 3, 2021, we had a remaining balance of $147.8 million under our stock repurchase program. We declared and paid common stock dividends totaling $40.0 million, or $0.74 per share, in fiscal 2021 compared to $34.7 million, or $0.64 per share, in fiscal 2020. Subsequent Events.
We declared and paid common stock dividends totaling $46.1 million, or $0.86 per share, in fiscal 2022 compared to $40.0 million, or $0.74 per share, in fiscal 2021. Subsequent Events.
Assuming the indefinitely reinvested foreign earnings were repatriated under the laws and rates applicable at October 3, 2021, the incremental taxes applicable to those earnings would not be material. We currently have no need or plans to repatriate undistributed foreign earnings, other than from Canada, in the foreseeable future; however, this could change due to varied economic circumstances.
Assuming the indefinitely reinvested foreign earnings were repatriated under the laws and rates applicable at October 3, 2022, the incremental taxes applicable to those earnings would not be material.
In fiscal 2021, net cash used in financing activities was $210.1 million, an increase of $47.1 million compared to fiscal 2020. The increase was due to the net change in overdrafts and higher net repayments on long-term debt, partially offset by lower stock repurchases compared to last fiscal year. Debt Financing.
In fiscal 2022, net cash used in financing activities was $249.6 million, an increase of $39.5 million compared to fiscal 2021. The increase was primarily due to higher stock repurchases. Debt Financing.
As a result of the impairment charge, the estimated fair value of the RFS reporting unit equaled its carrying value of $61 million at September 29, 2019, including the remaining $48.8 million of goodwill. Contingent Consideration Certain of our acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future operating income thresholds.
Contingent Consideration Certain of our acquisition agreements include contingent earn-out arrangements, which are generally based on the achievement of future operating income thresholds.
Conversely, income tax expense was reduced by $8.3 million and $6.4 million of excess tax benefits on share-based payments in fiscal 2020 and 2019, respectively.
In fiscal 2021, we repatriated approximately $80 million from Canada and recognized a related tax expense of $5.6 million. Also, i ncome tax expense was reduced by $10.3 million and $12.9 million of excess tax benefits on share-based payments in fiscal 2022 and 2021, respectively.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk We do not enter into derivative financial instruments for trading or speculation purposes. In the normal course of business, we have exposure to both interest rate risk and foreign currency transaction and translation risk, primarily related to the Canadian and Australian dollar, and British Pound.
Biggest changeIn the normal course of business, we have exposure to both interest rate risk and foreign currency transaction and translation risk, primarily related to the Canadian and Australian dollar and the British Pound. 49 We are exposed to interest rate risk under our Amended Credit Agreement.
For more information, see Note 14, “Derivative Financial Instruments” of the “Notes to Consolidated Financial Statements” in Item 8. Most of our transactions are in U.S. dollars; however, some of our subsidiaries conduct business in foreign currencies, primarily the Canadian and Australian dollar, and British Pound. Therefore, we are subject to currency exposure and volatility because of currency fluctuations.
For more information, see Note 14, “Derivative Financial Instruments” of the “Notes to Consolidated Financial Statements” in Item 8. Most of our transactions are in U.S. dollars; however, some of our subsidiaries conduct business in foreign currencies, primarily the Canadian and Australian dollar and the British Pound. Therefore, we are subject to currency exposure and volatility because of currency fluctuations.
In August 2018, we entered into five interest rate swap agreements with five banks to fix the variable interest rate on $250 million of our Amended Term Loan Facility. The objective of these interest rate swaps was to eliminate the variability of our cash flows on the amount of interest expense we pay under o ur Credit Agreement.
In August 2018, we entered into five interest rate swap agreements with five banks to fix the variable interest rate on $250 million of our Amended Term Loan Facility. The objective of these interest rate swaps was to eliminate the variability of our cash flows on the amount of interest expense we pay under our Credit Agreement.
We may borrow on the Amended Revolving Credit Facility, at our option, at either (a) a Eurocurrency rate plus a margin that ranges from 1.00% to 1.75% per annum, or (b) a base rate for loans in U.S. dollars (the highest of the U.S. federal funds rate plus 0.50% per annum, the bank’s prime rate or the Eurocurrency rate plus 1.00%) plus a margin that ranges from 0% to 0.75% per annum.
We may borrow on the Amended Revolving Credit Facility, at our option, at either (a) a Eurocurrency rate plus a margin that ranges from 1.000% to 1.875% per annum, or (b) a base rate for loans in U.S. dollars (the highest of the U.S. federal funds rate plus 0.50% per annum, the bank’s prime rate or the SOFR rate plus 1.00%) plus a margin that ranges from 0% to 0.875% per annum.
We attempt to minimize our exposure to these fluctuations by matching revenue and expenses in the same currency for our contracts. We reported $1.4 million and $1.3 million of foreign currency losses in fiscal 2021 and 2020, respectively in “Selling, general and administrative expenses” on our consolidated statements of income.
We attempt to minimize our exposure to these fluctuations by matching revenue and expenses in the same currency for our contracts. We reported $0.2 million and $1.4 million of foreign currency losses in fiscal 2022 and 2021, respectively, in “Selling, general and administrative expenses” on our consolidated statements of income.
Typically, at the end of such term, such borrowings may be rolled over at our discretion into either a borrowing at the base rate or a borrowing at a Eurodollar rate with similar terms, not to exceed the maturity date of the Facility. The Facility matures on July 30, 2023.
Typically, at the end of such term, such borrowings may be rolled over at our discretion into either a borrowing at the base rate or a borrowing at a SOFR rate with similar terms, not to exceed the maturity date of the Facility. The Facility matures on February 18, 2027.
For fis cal 2021 and 2020, 29.8% and 29.6% of our consolidated revenue, respectively, was generated by our international business. For fiscal 2021, the effect of foreign exchange rate translation on the consolidated balance sheets was an increase in equity of $30.6 million compared to an increase in equity of $3.4 million in fiscal 2020.
For fiscal 2022 and 2021, 31.0% and 29.8% of our consolidated revenue, respectively, was generated by our international business. For fiscal 2022, the effect of foreign exchange rate translation on the consolidated balance sheets was a decrease in equity of $94.9 million compared to an increase in equity of $30.6 million in fiscal 2021.
We are exposed to interest rate risk under our Amended Credit Agreement. We can borrow, at our option, under both the Amended Term Loan Facility and Amended Revolving Credit Facility.
We can borrow, at our option, under both the Amended Term Loan Facility and Amended Revolving Credit Facility.
As of October 3, 2021, the notional principal of our outstanding interest swap agreements was $212.5 million ($42.5 million each.) Our y ear-to-date average effective interest rate on borrowings outstanding under the Credit Agreement, including the effects of interest rate swap agreements, at October 3, 2021, was 3.30 %.
As of October 2, 2022, the notional principal of our outstanding interest swap agreements was $200.0 million ($40.0 million each.) Our year-to-date average effective interest rate on borrowings outstanding under the Credit Agreement, including the effects of interest rate swap agreements, at October 2, 2022, was 3.60%.
At October 3, 2021, we had $212.5 million in outstanding borrowings under the Amended Credit Agreement, which was comprised of $212.5 million under the Amended Term Loan Facility and no borrowings outstanding under the Amended Revolving Credit Facility. The weighted-average interest rate of the outstanding borrowings during fiscal 2021 was 1.25%.
At October 2, 2022, we had $258.8 million in outstanding borrowings under the Amended Credit Agreement, which was comprised of $243.8 million under the Amended Term Loan Facility and $15.0 million under the Amended Revolving Credit Facility. The year-to-date weighted-average interest rate of the outstanding borrowings during fiscal 2022 was 1.97%.
Borrowings at the base rate have no designated term and may be repaid without penalty any time prior to the Facility’s maturity date. Borrowings at a Eurodollar rate have a term no less than 30 days and no greater than 180 days and may be prepaid without penalty.
Borrowings at a SOFR rate have a term no l ess than 30 days and no greater than 180 days and may be prepaid without penalty.
Removed
These amounts were recognized as an adjustment to equity through othe r comprehensive income. 53
Added
Item 7A. Quantitative and Qualitative Disclosures about Market Risk We do not enter into derivative financial instruments for trading or speculation purposes.
Added
In each case, the applicable margin is based on our Consolidated Leverage Ratio, calculated quarterly. The Amended Term Loan Facility is subject to the same interest rate provisions. Borrowings at the base rate have no designated term and may be repaid without penalty any time prior to the Facility’s maturity date.
Added
These amounts were recognized as an adjustment to equity through othe r comprehensive income. In the anticipation of the planned acquisition of RPS, we entered into a forward contract during the fourth quarter of fiscal 2022 to acquire GBP 714.0 million at a rate of 1.0852 for a total of USD 774.8 million. The contract matures on December 30, 2022.
Added
Although an effective economic hedge of our foreign exchange risk related to this transaction, the forward contract did not qualify for hedge accounting. As a result, the forward contract is marked-to-market with changes in fair value recognized in earnings each period.
Added
The intrinsic value of the forward contract was immaterial at inception as the GBP/USD spot and forward exchange rates were essentially the same.
Added
The fair value of the forward contract at October 2, 2022 was $19.9 million, which resulted in an unrealized gain of the same amount in the fourth quarter fiscal 2022 and is reflected in “Other income" on the consolidated income statement for fiscal 2022.
Added
The related $19.9 million asset is reported in "Prepaid expenses and other current assets" on the consolidated balance sheet at October 2, 2022. 50

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