22. Condensed Consolidating Financial Information

In connection with the registration of the Company’s 2014 Senior Notes that were declared effective by the SEC on September 29, 2015, AECOM became subject to the requirements of Rule 3-10 of Regulation S-X regarding financial statements of guarantors and issuers of guaranteed securities. Both the 2014 Senior Notes and the 2017 Senior Notes are fully and unconditionally guaranteed on a joint and several basis by certain of AECOM’s directly and indirectly 100% owned subsidiaries (the Subsidiary Guarantors). Other than customary restrictions imposed by applicable statutes, there are no restrictions on the ability of the Subsidiary Guarantors to transfer funds to AECOM in the form of cash dividends, loans or advances.

The following condensed consolidating financial information, which is presented for AECOM, the Subsidiary Guarantors on a combined basis and AECOM’s non-guarantor subsidiaries on a combined basis, is provided to satisfy the disclosure requirements of Rule 3-10 of Regulation S-X.

Condensed Consolidating Balance Sheets

(in millions)

September 30, 2018


					Non-
			Guarantor		Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	22.0	$	270.9	$	593.8	$	—	$	886.7
Accounts receivable—net		—		2,544.7		2,924.1		—		5,468.8
Intercompany receivable		951.1		84.9		157.9		(1,193.9)		—
Prepaid expenses and other current assets		52.9		331.6		200.7		—		585.2
Current assets held for sale		—		—		59.8		—		59.8
Income taxes receivable		84.6		—		42.2		—		126.8
TOTAL CURRENT ASSETS		1,110.6		3,232.1		3,978.5		(1,193.9)		7,127.3
PROPERTY AND EQUIPMENT—NET		202.6		217.3		194.2		—		614.1
DEFERRED TAX ASSETS—NET		134.0		—		150.0		(124.6)		159.4
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES		6,364.1		1,912.0		—		(8,276.1)		—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES		13.4		49.6		247.7		—		310.7
GOODWILL		—		3,392.7		2,528.4		—		5,921.1
INTANGIBLE ASSETS—NET		—		218.6		101.3		—		319.9
OTHER NON-CURRENT ASSETS		49.9		45.6		133.1		—		228.6
TOTAL ASSETS	$	7,874.6	$	9,067.9	$	7,333.2	$	(9,594.6)	$	14,681.1
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	8.4	$	—	$	—	$	—	$	8.4
Accounts payable		53.6		1,616.7		1,055.7		—		2,726.0
Accrued expenses and other current liabilities		58.8		1,035.6		1,172.7		—		2,267.1
Income taxes payable		10.4		—		29.4		—		39.8
Intercompany payable		105.5		830.8		416.9		(1,353.2)		—
Billings in excess of costs on uncompleted contracts		1.5		316.1		613.8		—		931.4
Current liabilities held for sale		—		—		22.3		—		22.3
Current portion of long-term debt		43.3		27.0		64.4		—		134.7
TOTAL CURRENT LIABILITIES		281.5		3,826.2		3,375.2		(1,353.2)		6,129.7
OTHER LONG-TERM LIABILITIES		131.6		249.0		361.5		—		742.1
DEFERRED TAX LIABILITY—NET		—		63.1		108.9		(124.7)		47.3
NOTE PAYABLE INTERCOMPANY—NON CURRENT		800.9		—		487.5		(1,288.4)		—
LONG‑TERM DEBT		2,627.8		291.4		564.5		—		3,483.7
TOTAL LIABILITIES		3,841.8		4,429.7		4,897.6		(2,766.3)		10,402.8
TOTAL AECOM STOCKHOLDERS’ EQUITY		4,032.8		4,638.2		2,250.1		(6,828.3)		4,092.8
Noncontrolling interests		—		—		185.5		—		185.5
TOTAL STOCKHOLDERS’ EQUITY		4,032.8		4,638.2		2,435.6		(6,828.3)		4,278.3
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,874.6	$	9,067.9	$	7,333.2	$	(9,594.6)	$	14,681.1

Condensed Consolidating Balance Sheets

(in millions)

September 30, 2017


					Non-
			Guarantor		Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	32.6	$	254.9	$	514.9	$	—	$	802.4
Accounts receivable—net		—		2,426.4		2,701.3		—		5,127.7
Intercompany receivable		723.6		89.0		183.4		(996.0)		—
Prepaid expenses and other current assets		67.5		366.5		262.7		—		696.7
Income taxes receivable		4.3		—		51.1		—		55.4
TOTAL CURRENT ASSETS		828.0		3,136.8		3,713.4		(996.0)		6,682.2
PROPERTY AND EQUIPMENT—NET		160.2		215.0		246.2		—		621.4
DEFERRED TAX ASSETS—NET		239.7		61.7		164.5		(294.6)		171.3
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES		6,606.2		2,812.8		—		(9,419.0)		—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES		7.2		69.7		287.3		—		364.2
GOODWILL		—		3,392.7		2,600.2		—		5,992.9
INTANGIBLE ASSETS—NET		—		271.6		143.5		—		415.1
OTHER NON-CURRENT ASSETS		8.7		47.4		93.8		—		149.9
TOTAL ASSETS	$	7,850.0	$	10,007.7	$	7,248.9	$	(10,709.6)	$	14,397.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	1.1	$	—	$	0.1	$	—	$	1.2
Accounts payable		33.8		1,301.7		914.4		—		2,249.9
Accrued expenses and other current liabilities		92.2		1,171.8		981.5		—		2,245.5
Income taxes payable		—		8.1		30.1		—		38.2
Intercompany payable		149.2		789.5		159.6		(1,098.3)		—
Billings in excess of costs on uncompleted contracts		3.4		341.7		557.7		—		902.8
Current portion of long-term debt		110.9		14.9		15.0		—		140.8
TOTAL CURRENT LIABILITIES		390.6		3,627.7		2,658.4		(1,098.3)		5,578.4
OTHER LONG-TERM LIABILITIES		102.3		290.7		488.3		—		881.3
DEFERRED TAX LIABILITY—NET		—		0.6		314.5		(294.6)		20.5
NOTE PAYABLE INTERCOMPANY—NON CURRENT		0.1		—		467.2		(467.3)		—
LONG-TERM DEBT		3,366.9		281.6		53.6		—		3,702.1
TOTAL LIABILITIES		3,859.9		4,200.6		3,982.0		(1,860.2)		10,182.3
TOTAL AECOM STOCKHOLDERS’ EQUITY		3,990.1		5,807.1		3,048.3		(8,849.4)		3,996.1
Noncontrolling interests		—		—		218.6		—		218.6
TOTAL STOCKHOLDERS’ EQUITY		3,990.1		5,807.1		3,266.9		(8,849.4)		4,214.7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,850.0	$	10,007.7	$	7,248.9	$	(10,709.6)	$	14,397.0

Condensed Consolidating Statements of Operations

(in millions)


	For the Fiscal Year Ended September 30, 2018
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	—	$	11,052.9	$	9,212.9	$	(110.3)	$	20,155.5
Cost of revenue		—		10,757.2		8,858.0		(110.3)		19,504.9
Gross profit		—		295.7		354.9		—		650.6
Equity in earnings from subsidiaries		460.9		207.2		—		(668.1)		—
Equity in earnings of joint ventures		—		37.2		43.9		—		81.1
General and administrative expenses		(124.4)		—		(11.3)		—		(135.7)
Impairment on assets held for sale, including goodwill		—		—		(168.2)		—		(168.2)
Loss on disposal activities		—		—		(2.9)		—		(2.9)
Income from operations		336.5		540.1		216.4		(668.1)		424.9
Other income		12.0		34.5		12.7		(39.1)		20.1
Interest expense		(242.9)		(25.1)		(38.6)		39.1		(267.5)
Income before income tax (benefit) expense		105.6		549.5		190.5		(668.1)		177.5
Income tax (benefit) expense		(31.1)		98.8		(87.4)		—		(19.7)
Net income		136.7		450.7		277.9		(668.1)		197.2
Noncontrolling interests in income of consolidated subsidiaries, net of tax		—		—		(60.7)		—		(60.7)
Net income attributable to AECOM	$	136.7	$	450.7	$	217.2	$	(668.1)	$	136.5


	For the Fiscal Year Ended September 30, 2017
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	—	$	10,491.6	$	7,764.1	$	(52.3)	$	18,203.4
Cost of revenue		—		10,136.1		7,435.9		(52.3)		17,519.7
Gross profit		—		355.5		328.2		—		683.7
Equity in earnings from subsidiaries		439.3		222.4		—		(661.7)		—
Equity in earnings of joint ventures		—		43.8		97.8		—		141.6
General and administrative expenses		(124.7)		—		(8.7)		—		(133.4)
Acquisition and integration expenses		(38.7)		—		—		—		(38.7)
Gain on disposal activities		—		—		0.6		—		0.6
Income from operations		275.9		621.7		417.9		(661.7)		653.8
Other income		2.1		31.9		9.2		(36.5)		6.7
Interest expense		(203.7)		(31.1)		(33.0)		36.5		(231.3)
Income before income tax (benefit) expense		74.3		622.5		394.1		(661.7)		429.2
Income tax (benefit) expense		(264.9)		182.5		58.4		31.7		7.7
Net income		339.2		440.0		335.7		(693.4)		421.5
Noncontrolling interests in income of consolidated subsidiaries, net of tax		—		—		(82.1)		—		(82.1)
Net income attributable to AECOM	$	339.2	$	440.0	$	253.6	$	(693.4)	$	339.4

Condensed Consolidating Statements of Operations

(in millions)


	For the Fiscal Year Ended September 30, 2016
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	—	$	10,182.1	$	7,310.7	$	(82.0)	$	17,410.8
Cost of revenue		—		9,864.3		6,985.7		(82.0)		16,768.0
Gross profit		—		317.8		325.0		—		642.8
Equity in earnings from subsidiaries		437.4		242.7		—		(680.1)		—
Equity in earnings of joint ventures		—		38.4		65.6		—		104.0
General and administrative expenses		(114.0)		(1.1)		—		—		(115.1)
Acquisition and integration expenses		(213.6)		—		—		—		(213.6)
Loss on disposal activities		—		—		(42.6)		—		(42.6)
Income from operations		109.8		597.8		348.0		(680.1)		375.5
Other income		0.8		34.7		12.7		(40.0)		8.2
Interest expense		(231.7)		(29.0)		(37.4)		40.0		(258.1)
(Loss) income before income tax (benefit) expense		(121.1)		603.5		323.3		(680.1)		125.6
Income tax (benefit) expense		(217.3)		118.7		23.4		37.3		(37.9)
Net income		96.2		484.8		299.9		(717.4)		163.5
Noncontrolling interests in income of consolidated subsidiaries, net of tax		—		—		(67.4)		—		(67.4)
Net income attributable to AECOM	$	96.2	$	484.8	$	232.5	$	(717.4)	$	96.1

Consolidating Statements of Comprehensive Income (Loss)

(in millions)


	For the Fiscal Year Ended September 30, 2018
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Net income	$	136.7	$	450.7	$	277.9	$	(668.1)	$	197.2
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on derivatives, net of tax		2.3		—		(0.6)		—		1.7
Foreign currency translation adjustments		—		—		(82.7)		—		(82.7)
Pension adjustments, net of tax		5.0		10.8		63.7		—		79.5
Other comprehensive income (loss), net of tax		7.3		10.8		(19.6)		—		(1.5)
Comprehensive income, net of tax		144.0		461.5		258.3		(668.1)		195.7
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax		—		—		(61.9)		—		(61.9)
Comprehensive income attributable to AECOM, net of tax	$	144.0	$	461.5	$	196.4	$	(668.1)	$	133.8


	For the Fiscal Year Ended September 30, 2017
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Net income	$	339.2	$	440.0	$	335.7	$	(693.4)	$	421.5
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on derivatives, net of tax		4.9		—		(0.3)		—		4.6
Foreign currency translation adjustments		—		—		65.4		—		65.4
Pension adjustments, net of tax		7.1		13.8		66.1		—		87.0
Other comprehensive income, net of tax		12.0		13.8		131.2		—		157.0
Comprehensive income, net of tax		351.2		453.8		466.9		(693.4)		578.5
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax		—		—		(82.2)		—		(82.2)
Comprehensive income attributable to AECOM, net of tax	$	351.2	$	453.8	$	384.7	$	(693.4)	$	496.3


	For the Fiscal Year Ended September 30, 2016
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Net income	$	96.2	$	484.8	$	299.9	$	(717.4)	$	163.5
Other comprehensive income (loss), net of tax:
Net unrealized gain on derivatives, net of tax		2.6		—		3.4		—		6.0
Foreign currency translation adjustments		—		—		(65.3)		—		(65.3)
Pension adjustments, net of tax		(3.3)		(14.9)		(146.7)		—		(164.9)
Other comprehensive loss, net of tax		(0.7)		(14.9)		(208.6)		—		(224.2)
Comprehensive income (loss), net of tax		95.5		469.9		91.3		(717.4)		(60.7)
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax		—		—		(65.7)		—		(65.7)
Comprehensive income (loss) attributable to AECOM, net of tax	$	95.5	$	469.9	$	25.6	$	(717.4)	$	(126.4)

Condensed Consolidating Statements of Cash Flows

(in millions)


	For the Fiscal Year Ended September 30, 2018
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
CASH FLOWS FROM OPERATING ACTIVITIES	$	(205.5)	$	640.9	$	339.1	$	—	$	774.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from purchase price adjustment to business acquisition		—		—		2.2		—		2.2
Cash acquired from consolidation of joint venture		—		—		7.6		—		7.6
Proceeds from disposal of business, net of cash disposed		—		—		19.5		—		19.5
Net investment in unconsolidated joint ventures		(6.1)		(9.1)		30.0		—		14.8
Net purchases of investments		—		—		(16.3)		—		(16.3)
Payments for capital expenditures, net of disposals		(29.3)		(39.1)		(18.5)		—		(86.9)
Net investment in intercompany notes		(54.3)		(778.8)		(5.6)		838.7		—
Other intercompany investing activities		528.2		1,022.1		—		(1,550.3)		—
Net cash provided by investing activities		438.5		195.1		18.9		(711.6)		(59.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements		7,770.4		0.2		758.4		—		8,529.0
Repayments of borrowings under credit agreements		(7,820.0)		(18.0)		(202.2)		—		(8,040.2)
Redemption of unsecured senior notes		(800.0)		—		—		—		(800.0)
Prepayment penalty on unsecured senior notes		(34.5)		—		—		—		(34.5)
Cash paid for debt issuance costs		(12.2)		—		—		—		(12.2)
Proceeds from issuance of common stock		35.2		—		—		—		35.2
Proceeds from exercise of stock options		2.8		—		—		—		2.8
Payments to repurchase common stock under the share repurchase Program		(150.0)		—		—		—		(150.0)
Payments to repurchase common stock		(29.5)		—		—		—		(29.5)
Net distributions to noncontrolling interests		—		—		(89.8)		—		(89.8)
Other financing activities		(3.6)		(22.4)		(9.7)		—		(35.7)
Net borrowings on intercompany notes		797.8		5.9		35.0		(838.7)		—
Other intercompany financing activities		—		(785.7)		(764.6)		1,550.3		—
Net cash used in financing activities		(243.6)		(820.0)		(272.9)		711.6		(624.9)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		—		—		(6.2)		—		(6.2)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(10.6)		16.0		78.9		—		84.3
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		32.6		254.9		514.9		—		802.4
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	22.0	$	270.9	$	593.8	$	—	$	886.7


	For the Fiscal Year Ended September 30, 2017
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
CASH FLOWS FROM OPERATING ACTIVITIES	$	(5.9)	$	695.0	$	7.6	$	—	$	696.7
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for business acquisitions, net of cash acquired		—		—		(103.1)		—		(103.1)
Proceeds from disposal of business, net of cash disposed		—		—		2.2		—		2.2
Net investment in unconsolidated joint ventures		—		(2.7)		(21.6)		—		(24.3)
Net purchases of investments		—		—		0.9		—		0.9
Payments for capital expenditures, net of disposals		(21.7)		(30.6)		(26.1)		—		(78.4)
Net (investment in) reciepts from intercompany notes		(4.6)		102.8		12.2		(110.4)		—
Other intercompany investing activities		139.0		(233.2)		—		94.2		—
Net cash provided by (used in) investing activities		112.7		(163.7)		(135.5)		(16.2)		(202.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements		5,903.5		13.1		36.6		—		5,953.2
Repayments of borrowings under credit agreements		(6,956.3)		(51.1)		(64.2)		—		(7,071.6)
Issuance of unsecured senior notes		1,000.0		—		—		—		1,000.0
Redemption of unsecured senior notes		—		(179.2)		—		—		(179.2)
Cash paid for debt and equity issuance costs		(13.0)		—		—		—		(13.0)
Proceeds from issuance of common stock		30.1		—		—		—		30.1
Proceeds from exercise of stock options		4.9		—		—		—		4.9
Payments to repurchase common stock		(25.1)		—		—		—		(25.1)
Net distributions to noncontrolling interests		—		—		(59.0)		—		(59.0)
Other financing activities		(24.1)		(38.3)		35.6		—		(26.8)
Net borrowings (repayments) on intercompany notes		4.0		(16.3)		(98.1)		110.4		—
Other intercompany financing activities		—		(200.9)		295.1		(94.2)		—
Net cash provided by (used in) financing activities		(76.0)		(472.7)		146.0		16.2		(386.5)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		—		—		2.8		—		2.8
NET INCREASE IN CASH AND CASH EQUIVALENTS		30.8		58.6		20.9		—		110.3
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		1.8		196.3		494.0		—		692.1
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	32.6	$	254.9	$	514.9	$	—	$	802.4

Condensed Consolidating Statements of Cash Flows

(in millions)


	For the Fiscal Year Ended September 30, 2016
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
CASH FLOWS FROM OPERATING ACTIVITIES	$	(273.6)	$	639.0	$	448.8	$	—	$	814.2
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for business acquisitions, net of cash acquired		—		(1.0)		(4.5)		—		(5.5)
Proceeds from disposal of businesses and property		—		—		39.7		—		39.7
Net investment in unconsolidated joint ventures		—		(3.1)		(68.4)		—		(71.5)
Net purchases of investments		—		—		11.5		—		11.5
Payments for capital expenditures, net of disposals		(82.0)		(59.5)		4.7		—		(136.8)
Net receipts from (investment in) intercompany notes		5.3		176.1		(13.5)		(167.9)		—
Other intercompany investing activities		791.2		140.3		—		(931.5)		—
Net cash provided by (used in) investing activities		714.5		252.8		(30.5)		(1,099.4)		(162.6)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements		4,673.0		17.6		15.6		—		4,706.2
Repayments of borrowings under credit agreements		(5,124.1)		(22.8)		(53.1)		—		(5,200.0)
Cash paid for debt and equity issuance costs		(10.4)		—		—		—		(10.4)
Proceeds from issuance of common stock		28.2		—		—		—		28.2
Proceeds from exercise of stock options		9.9		—		—		—		9.9
Payments to repurchase common stock		(25.9)		—		—		—		(25.9)
Net distributions to noncontrolling interests		—		—		(103.2)		—		(103.2)
Other financing activities		7.9		(4.5)		(46.3)		—		(42.9)
Net borrowings (repayments) on intercompany notes		1.0		12.5		(181.4)		167.9		—
Other intercompany financing activities		—		(867.6)		(63.9)		931.5		—
Net cash used in financing activities		(440.4)		(864.8)		(432.3)		1,099.4		(638.1)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		—		—		(5.3)		—		(5.3)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		0.5		27.0		(19.3)		—		8.2
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		1.3		169.3		513.3		—		683.9
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	1.8	$	196.3	$	494.0	$	—	$	692.1