Condensed Consolidating Financial Information (Tables)

6 Months Ended

Mar. 31, 2017

Condensed Consolidating Financial Information

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

(unaudited — in millions)

March 31, 2017

	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	6.3	$	210.7	$	509.0	$	—		$	726.0
Accounts receivable—net	—		2,104.7		2,604.2		—			4,708.9
Intercompany receivable	738.6		67.9		141.9		(948.4		)	—
Prepaid expenses and other current assets	53.2		356.9		278.4		—			688.5
Income taxes receivable	12.5		—		30.4		—			42.9

TOTAL CURRENT ASSETS	810.6		2,740.2		3,563.9		(948.4		)	6,166.3
PROPERTY AND EQUIPMENT—NET	170.2		229.4		219.4		—			619.0
DEFERRED TAX ASSETS—NET	306.7		—		160.9		(292.9		)	174.7
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	6,255.8		1,375.1		59.0		(7,689.9		)	—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	0.7		48.9		305.0		—			354.6
GOODWILL	—		3,318.5		2,486.7		—			5,805.2
INTANGIBLE ASSETS—NET	—		304.3		122.5		—			426.8
OTHER NON-CURRENT ASSETS	8.7		20.3		65.4		—			94.4

TOTAL ASSETS	$	7,552.7	$	8,036.7	$	6,982.8	$	(8,931.2	)	$	13,641.0


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	1.8	$	7.3	$	12.3	$	—		$	21.4
Accounts payable	28.4		897.1		1,011.6		—			1,937.1
Accrued expenses and other current liabilities	129.5		981.1		1,008.8		—			2,119.4
Accrued taxes payable	—		—		10.2		—			10.2
Intercompany payable	83.8		820.0		147.1		(1,050.9		)	—
Billings in excess of costs on uncompleted contracts	—		231.1		413.7		—			644.8
Current portion of long-term debt	101.9		218.4		10.9		—			331.2

TOTAL CURRENT LIABILITIES	345.4		3,155.0		2,614.6		(1,050.9		)	5,064.1
OTHER LONG-TERM LIABILITIES	111.2		316.2		563.6		—			991.0
DEFERRED TAX LIABILITY — NET	—		299.5		—		(292.9		)	6.6
NOTE PAYABLE INTERCOMPANY—NON CURRENT	—		—		580.5		(580.5		)	—
LONG-TERM DEBT	3,559.8		274.6		16.7		—			3,851.1

TOTAL LIABILITIES	4,016.4		4,045.3		3,775.4		(1,924.3		)	9,912.8
TOTAL AECOM STOCKHOLDERS’ EQUITY	3,536.3		3,991.4		3,023.6		(7,006.9		)	3,544.4
Noncontrolling interests	—		—		183.8		—			183.8

TOTAL STOCKHOLDERS’ EQUITY	3,536.3		3,991.4		3,207.4		(7,006.9		)	3,728.2

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,552.7	$	8,036.7	$	6,982.8	$	(8,931.2	)	$	13,641.0

Condensed Consolidating Balance Sheets

(unaudited - in millions)

September 30, 2016

	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	1.8	$	183.7	$	506.6	$	—		$	692.1
Accounts receivable—net	—		2,034.0		2,497.5		—			4,531.5
Intercompany receivable	760.7		151.7		152.0		(1,064.4		)	—
Prepaid expenses and other current assets	98.7		336.2		295.2		—			730.1
Income taxes receivable	28.7		—		18.4		—			47.1

TOTAL CURRENT ASSETS	889.9		2,705.6		3,469.7		(1,064.4		)	6,000.8
PROPERTY AND EQUIPMENT—NET	169.3		236.5		239.2		—			645.0
DEFERRED TAX ASSETS—NET	265.2		—		129.8		(223.5		)	171.5
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	6,031.7		1,408.4		58.4		(7,498.5		)	—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	0.7		48.6		281.2		—			330.5
GOODWILL	—		3,286.6		2,537.2		—			5,823.8
INTANGIBLE ASSETS—NET	—		334.0		145.4		—			479.4
OTHER NON-CURRENT ASSETS	8.4		71.4		139.1		—			218.9

TOTAL ASSETS	$	7,365.2	$	8,091.1	$	7,000.0	$	(8,786.4	)	$	13,669.9


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	3.1	$	7.3	$	15.9	$	—		$	26.3
Accounts payable	45.8		907.0		958.1		—			1,910.9
Accrued expenses and other current liabilities	201.2		1,137.1		1,046.5		—			2,384.8
Accrued taxes payable	—		—		10.8		—			10.8
Intercompany payable	114.1		857.9		208.8		(1,180.8		)	—
Billings in excess of costs on uncompleted contracts	—		237.5		394.4		—			631.9
Current portion of long-term debt	108.2		222.1		9.7		—			340.0

TOTAL CURRENT LIABILITIES	472.4		3,368.9		2,644.2		(1,180.8		)	5,304.7
OTHER LONG-TERM LIABILITIES	115.7		349.3		632.4		—			1,097.4
DEFERRED TAX LIABILITY — NET	—		236.6		—		(223.5		)	13.1
NOTE PAYABLE INTERCOMPANY—NON CURRENT	—		—		563.5		(563.5		)	—
LONG-TERM DEBT	3,411.2		273.4		17.6		—			3,702.2

TOTAL LIABILITIES	3,999.3		4,228.2		3,857.7		(1,967.8		)	10,117.4
TOTAL AECOM STOCKHOLDERS’ EQUITY	3,365.9		3,862.9		2,956.7		(6,818.6		)	3,366.9
Noncontrolling interests	—		—		185.6		—			185.6

TOTAL STOCKHOLDERS’ EQUITY	3,365.9		3,862.9		3,142.3		(6,818.6		)	3,552.5

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,365.2	$	8,091.1	$	7,000.0	$	(8,786.4	)	$	13,669.9

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

(unaudited - in millions)

	For the three months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	2,289.8		$	2,157.4		$	(20.0	)	$	4,427.2

Cost of revenue	—			2,194.2			2,084.6			(20.0		)	4,258.8

Gross profit	—			95.6			72.8			—			168.4

Equity in earnings from subsidiaries	167.8			64.1			0.7			(232.6		)	—
Equity in earnings of joint ventures	—			5.0			16.8			—			21.8
General and administrative expenses	(29.9		)	—			—			—			(29.9		)
Acquisition and integration expenses	(20.0		)	—			—			—			(20.0		)
Gain on disposal activity	—			—			0.6			—			0.6

Income from operations	117.9			164.7			90.9			(232.6		)	140.9

Other income	0.5			8.3			1.6			(9.1		)	1.3
Interest expense	(55.1		)	(6.1		)	(9.7		)	9.1			(61.8		)

Income before income tax (benefit) expense	63.3			166.9			82.8			(232.6		)	80.4

Income tax (benefit) expense	(39.1		)	38.2			(34.5		)	—			(35.4		)

Net income	102.4			128.7			117.3			(232.6		)	115.8
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(13.4		)	—			(13.4		)

Net income attributable to AECOM	$	102.4		$	128.7		$	103.9		$	(232.6	)	$	102.4

	For the three months ended March 31, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	2,357.7		$	2,032.4		$	(8.9	)	$	4,381.2

Cost of revenue	—			2,214.1			1,992.6			(8.9		)	4,197.8

Gross profit	—			143.6			39.8			—			183.4

Equity in earnings from subsidiaries	125.1			(19.8		)	0.8			(106.1		)	—
Equity in earnings of joint ventures	—			7.2			31.9			—			39.1
General and administrative expenses	(29.4		)	(0.1		)	—			—			(29.5		)
Acquisition and integration expenses	(50.7		)	—			—			—			(50.7		)
Loss on disposal activities	—			—			(1.6		)	—			(1.6		)

Income from operations	45.0			130.9			70.9			(106.1		)	140.7

Other income	2.2			8.9			(0.9		)	(9.4		)	0.8
Interest expense	(55.9		)	(5.4		)	(10.8		)	9.4			(62.7		)

(Loss) income before income tax (benefit) expense	(8.7		)	134.4			59.2			(106.1		)	78.8

Income tax (benefit) expense	(50.6		)	66.2			(4.3		)	0.9			12.2

Net income	41.9			68.2			63.5			(107.0		)	66.6
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(24.7		)	—			(24.7		)

Net income attributable to AECOM	$	41.9		$	68.2		$	38.8		$	(107.0	)	$	41.9

Condensed Consolidating Statements of Operations

(unaudited - in millions)

	For the six months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	4,571.3		$	4,247.5		$	(33.3	)	$	8,785.5

Cost of revenue	—			4,355.5			4,124.9			(33.3		)	8,447.1

Gross profit	—			215.8			122.6			—			338.4

Equity in earnings from subsidiaries	288.1			64.0			1.4			(353.5		)	—
Equity in earnings of joint ventures	—			14.9			28.3			—			43.2
General and administrative expenses	(62.5		)	—			—			—			(62.5		)
Acquisition and integration expenses	(35.4		)	—			—			—			(35.4		)
Gain on disposal activity	—			—			0.6			—			0.6

Income from operations	190.2			294.7			152.9			(353.5		)	284.3

Other income	0.9			15.9			4.5			(19.2		)	2.1
Interest expense	(102.9		)	(11.8		)	(19.9		)	19.2			(115.4		)

Income before income tax (benefit) expense	88.2			298.8			137.5			(353.5		)	171.0

Income tax (benefit) expense	(61.4		)	74.1			(23.3		)	—			(10.6		)

Net income	149.6			224.7			160.8			(353.5		)	181.6
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(32.0		)	—			(32.0		)

Net income attributable to AECOM	$	149.6		$	224.7		$	128.8		$	(353.5	)	$	149.6

	For the six months ended March 31, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	4,594.0		$	4,126.6		$	(41.7	)	$	8,678.9

Cost of revenue	—			4,396.6			3,999.7			(41.7		)	8,354.6

Gross profit	—			197.4			126.9			—			324.3

Equity in earnings from subsidiaries	180.0			(60.1		)	1.6			(121.5		)	—
Equity in earnings of joint ventures	—			11.7			52.6			—			64.3
General and administrative expenses	(57.0		)	(1.2		)	—			—			(58.2		)
Acquisition and integration expenses	(91.7		)	—			—			—			(91.7		)
Loss on disposal activities	—			—			(42.6		)	—			(42.6		)

Income from operations	31.3			147.8			138.5			(121.5		)	196.1

Other income	3.0			17.8			1.6			(18.6		)	3.8
Interest expense	(109.2		)	(11.1		)	(20.5		)	18.6			(122.2		)

(Loss) income before income tax (benefit) expense	(74.9		)	154.5			119.6			(121.5		)	77.7

Income tax (benefit) expense	(96.4		)	84.3			9.9			13.7			11.5

Net income	21.5			70.2			109.7			(135.2		)	66.2
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(44.7		)	—			(44.7		)

Net income attributable to AECOM	$	21.5		$	70.2		$	65.0		$	(135.2	)	$	21.5

Schedule of Consolidating Statements of Comprehensive Income (Loss)

Consolidating Statements of Comprehensive Income (Loss)

(unaudited - in millions)

	For the three months ended March 31, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	102.4	$	128.7	$	117.3		$	(232.6	)	$	115.8
Other comprehensive income (loss), net of tax:
Net unrealized gain on derivatives, net of tax	1.2		—		1.1			—			2.3
Foreign currency translation adjustments	—		—		40.9			—			40.9
Pension adjustments, net of tax	0.7		—		(2.2		)	—			(1.5		)

Other comprehensive income, net of tax	1.9		—		39.8			—			41.7

Comprehensive income, net of tax	104.3		128.7		157.1			(232.6		)	157.5
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—		—		(13.8		)	—			(13.8		)

Comprehensive income attributable to AECOM, net of tax	$	104.3	$	128.7	$	143.3		$	(232.6	)	$	143.7

	For the three months ended March 31, 2016
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	41.9		$	68.2	$	63.5		$	(107.0	)	$	66.6
Other comprehensive (loss) income, net of tax:
Net unrealized (loss) gain on derivatives, net of tax	(2.6		)	—		2.1			—			(0.5		)
Foreign currency translation adjustments	—			—		67.8			—			67.8
Pension adjustments, net of tax	0.6			—		5.9			—			6.5

Other comprehensive (loss) income, net of tax	(2.0		)	—		75.8			—			73.8

Comprehensive income net of tax	39.9			68.2		139.3			(107.0		)	140.4
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—			—		(24.8		)	—			(24.8		)

Comprehensive income attributable to AECOM, net of tax	$	39.9		$	68.2	$	114.5		$	(107.0	)	$	115.6

Consolidating Statements of Comprehensive Income (Loss)

(unaudited - in millions)

	For the six months ended March 31, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	149.6	$	224.7	$	160.8		$	(353.5	)	$	181.6
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on derivatives, net of tax	4.1		—		(0.4		)	—			3.7
Foreign currency translation adjustments	—		—		(33.0		)	—			(33.0		)
Pension adjustments, net of tax	1.3		—		14.1			—			15.4

Other comprehensive income (loss), net of tax	5.4		—		(19.3		)	—			(13.9		)

Comprehensive income, net of tax	155.0		224.7		141.5			(353.5		)	167.7
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—		—		(32.1		)	—			(32.1		)

Comprehensive income attributable to AECOM, net of tax	$	155.0	$	224.7	$	109.4		$	(353.5	)	$	135.6

	For the six months ended March 31, 2016
	Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	21.5	$	70.2		$	109.7		$	(135.2	)	$	66.2
Other comprehensive income (loss), net of tax:
Net unrealized gain on derivatives, net of tax	1.3		—			3.5			—			4.8
Foreign currency translation adjustments	—		—			(29.9		)	—			(29.9		)
Pension adjustments, net of tax	1.2		(4.7		)	10.7			—			7.2

Other comprehensive income (loss), net of tax	2.5		(4.7		)	(15.7		)	—			(17.9		)

Comprehensive income net of tax	24.0		65.5			94.0			(135.2		)	48.3
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—		—			(43.1		)	—			(43.1		)

Comprehensive income attributable to AECOM, net of tax	$	24.0	$	65.5		$	50.9		$	(135.2	)	$	5.2

Schedule on Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

(unaudited - in millions)

	For the six months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total

CASH FLOWS FROM OPERATING ACTIVITIES	$	(137.5	)	$	149.2		$	19.7		$	—		$	31.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposal of business, net of cash disposed	—			—			2.2			—			2.2
Net investment in unconsolidated joint ventures	—			(0.3		)	(21.7		)	—			(22.0		)
Net purchase of investments	—			—			0.6			—			0.6
Payments for capital expenditures, net of disposals	(10.2		)	(17.4		)	(11.1		)	—			(38.7		)
Net investment in intercompany notes	(6.8		)	(3.0		)	20.5			(10.7		)	—
Other intercompany investing activities	44.5			57.1			1.0			(102.6		)	—

Net cash provided by (used in) investing activities	27.5			36.4			(8.5		)	(113.3		)	(57.9		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	3,116.3			—			6.8			—			3,123.1
Repayments of borrowings under credit agreements	(3,979.0		)	(12.7		)	(11.3		)	—			(4,003.0		)
Issuance of unsecured senior notes	1,000.0			—			—			—			1,000.0
Cash paid for debt and equity issuance costs	(12.5		)	—			—			—			(12.5		)
Proceeds from issuance of common stock	14.3			—			—			—			14.3
Proceeds from exercise of stock options	3.7			—			—			—			3.7
Payments to repurchase common stock	(18.0		)	—			—			—			(18.0		)
Net distributions to noncontrolling interests	—			—			(33.4		)	—			(33.4		)
Other financing activities	(11.3		)	(35.8		)	37.0			—			(10.1		)
Net borrowings on intercompany notes	1.0			(20.5		)	8.8			10.7			—
Other intercompany financing activities	—			(89.6		)	(13.0		)	102.6			—

Net cash provided by (used in) financing activities	114.5			(158.6		)	(5.1		)	113.3			64.1

EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(3.7		)	—			(3.7		)
NET INCREASE IN CASH AND CASH EQUIVALENTS	4.5			27.0			2.4			—			33.9
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	1.8			183.7			506.6			—			692.1

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	6.3		$	210.7		$	509.0		$	—		$	726.0

Condensed Consolidating Statements of Cash Flows

(unaudited - in millions)

	For the six months ended March 31, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES	$	(322.5	)	$	374.0		$	139.7		$	—		$	191.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for business acquisitions, net of cash acquired	—			(1.0		)	—			—			(1.0		)
Proceeds from disposal of businesses and property	—			—			39.7			—			39.7
Net investment in unconsolidated joint ventures	—			(1.4		)	(44.2		)	—			(45.6		)
Net sales of investments	—			—			11.2			—			11.2
Payments for capital expenditures, net of disposals	(24.0		)	(23.5		)	16.5			—			(31.0		)
Net (investment in) receipts from intercompany notes	(3.2		)	48.5			(11.2		)	(34.1		)	—
Other intercompany investing activities	448.9			98.1			—			(547.0		)	—

Net cash provided by investing activities	421.7			120.7			12.0			(581.1		)	(26.7		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	2,316.5			—			6.2			—			2,322.7
Repayments of borrowings under credit agreements	(2,423.8		)	(10.8		)	(23.8		)	—			(2,458.4		)
Cash paid for debt and equity issuance costs	(1.5		)	—			—			—			(1.5		)
Proceeds from issuance of common stock	13.8			—			—			—			13.8
Proceeds from exercise of stock options	4.9			—			—			—			4.9
Payments to repurchase common stock	(18.1		)	—			—			—			(18.1		)
Excess tax benefit from share-based payment	3.3			—			—			—			3.3
Net distributions to noncontrolling interests	—			—			(60.5		)	—			(60.5		)
Other financing activities	5.0			(13.2		)	24.8			—			16.6
Net borrowings (repayments) on intercompany notes	1.2			10.0			(45.3		)	34.1			—
Other intercompany financing activities	—			(497.4		)	(49.6		)	547.0			—

Net cash used in financing activities	(98.7		)	(511.4		)	(148.2		)	581.1			(177.2		)

EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(1.4		)	—			(1.4		)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	0.5			(16.7		)	2.1			—			(14.1		)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	1.3			162.5			520.1			—			683.9

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	1.8		$	145.8		$	522.2		$	—		$	669.8