Condensed Consolidating Financial Information (Tables)

3 Months Ended

Dec. 31, 2017

Condensed Consolidating Financial Information

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

(unaudited — in millions)

December 31, 2017

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	4.1	$	213.2	$	595.9	$	—		$	813.2
Accounts receivable—net	—		2,283.7		3,030.0		—			5,313.7
Intercompany receivable	733.6		91.0		128.0		(952.6		)	—
Prepaid expenses and other current assets	91.2		305.9		279.8		—			676.9
Income taxes receivable	11.0		—		27.2		—			38.2

TOTAL CURRENT ASSETS	839.9		2,893.8		4,060.9		(952.6		)	6,842.0
PROPERTY AND EQUIPMENT—NET	165.9		220.4		245.3		—			631.6
DEFERRED TAX ASSETS—NET	154.8		111.4		251.6		(301.0		)	216.8
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	6,775.5		2,756.7		—		(9,532.2		)	—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	8.6		52.4		309.3		—			370.3
GOODWILL	—		3,318.6		2,678.4		—			5,997.0
INTANGIBLE ASSETS—NET	—		257.4		154.4		—			411.8
OTHER NON-CURRENT ASSETS	8.7		21.2		123.6		—			153.5

TOTAL ASSETS	$	7,953.4	$	9,631.9	$	7,823.5	$	(10,785.8	)	$	14,623.0


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	2.4	$	—	$	—	$	—		$	2.4
Accounts payable	42.5		1,098.2		1,285.8		—			2,426.5
Accrued expenses and other current liabilities	76.5		955.8		1,039.9		—			2,072.2
Income taxes payable	—		—		18.2		—			18.2
Intercompany payable	93.8		761.7		170.0		(1,025.5		)	—
Billings in excess of costs on uncompleted contracts	2.9		355.2		637.8		—			995.9
Current portion of long-term debt	110.7		27.7		22.5		—			160.9

TOTAL CURRENT LIABILITIES	328.8		3,198.6		3,174.2		(1,025.5		)	5,676.1
OTHER LONG-TERM LIABILITIES	103.5		264.0		477.4		—			844.9
DEFERRED TAX LIABILITY—NET	—		—		333.3		(301.0		)	32.3
NOTE PAYABLE INTERCOMPANY—NON CURRENT	0.1		—		472.2		(472.3		)	—
LONG-TERM DEBT	3,422.0		276.9		40.0		—			3,738.9

TOTAL LIABILITIES	3,854.4		3,739.5		4,497.1		(1,798.8		)	10,292.2
TOTAL AECOM STOCKHOLDERS’ EQUITY	4,099.0		5,892.4		3,100.0		(8,987.0		)	4,104.4
Noncontrolling interests	—		—		226.4		—			226.4

TOTAL STOCKHOLDERS’ EQUITY	4,099.0		5,892.4		3,326.4		(8,987.0		)	4,330.8

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,953.4	$	9,631.9	$	7,823.5	$	(10,785.8	)	$	14,623.0

Condensed Consolidating Balance Sheets

(in millions)

September 30, 2017

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	32.6	$	251.6	$	518.2	$	—		$	802.4
Accounts receivable—net	—		2,159.2		2,968.5		—			5,127.7
Intercompany receivable	723.6		90.9		181.4		(995.9		)	—
Prepaid expenses and other current assets	67.5		338.4		290.8		—			696.7
Income taxes receivable	4.3		—		51.1		—			55.4

TOTAL CURRENT ASSETS	828.0		2,840.1		4,010.0		(995.9		)	6,682.2
PROPERTY AND EQUIPMENT—NET	160.2		207.1		254.1		—			621.4
DEFERRED TAX ASSETS—NET	239.7		55.2		171.0		(294.6		)	171.3
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	6,606.2		2,865.0		—		(9,471.2		)	—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	7.2		50.3		306.7		—			364.2
GOODWILL	—		3,318.6		2,674.3		—			5,992.9
INTANGIBLE ASSETS—NET	—		271.6		143.5		—			415.1
OTHER NON-CURRENT ASSETS	8.7		17.6		123.6		—			149.9

TOTAL ASSETS	$	7,850.0	$	9,625.5	$	7,683.2	$	(10,761.7	)	$	14,397.0


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	1.1	$	—	$	0.1	$	—		$	1.2
Accounts payable	33.8		1,023.7		1,192.4		—			2,249.9
Accrued expenses and other current liabilities	92.2		1,112.9		1,040.4		—			2,245.5
Income taxes payable	—		—		38.2		—			38.2
Intercompany payable	149.2		787.5		161.4		(1,098.1		)	—
Billings in excess of costs on uncompleted contracts	3.4		313.1		586.3		—			902.8
Current portion of long-term debt	110.9		14.9		15.0		—			140.8

TOTAL CURRENT LIABILITIES	390.6		3,252.1		3,033.8		(1,098.1		)	5,578.4
OTHER LONG-TERM LIABILITIES	102.3		285.7		493.3		—			881.3
DEFERRED TAX LIABILITY—NET	—		—		315.1		(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		3,819.4		4,363.0		(1,860.0		)	10,182.3
TOTAL AECOM STOCKHOLDERS’ EQUITY	3,990.1		5,806.1		3,101.6		(8,901.7		)	3,996.1
Noncontrolling interests	—		—		218.6		—			218.6

TOTAL STOCKHOLDERS’ EQUITY	3,990.1		5,806.1		3,320.2		(8,901.7		)	4,214.7

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,850.0	$	9,625.5	$	7,683.2	$	(10,761.7	)	$	14,397.0

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

(unaudited - in millions)

	For the three months ended December 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	2,433.2		$	2,489.6		$	(12.0	)	$	4,910.8
Cost of revenue	—			2,317.1			2,469.5			(12.0		)	4,774.6

Gross profit	—			116.1			20.1			—			136.2
Equity in earnings from subsidiaries	206.1			26.4			—			(232.5		)	—
Equity in earnings of joint ventures	—			12.3			17.4			—			29.7
General and administrative expenses	(32.1		)	—			(2.6		)	—			(34.7		)

Income from operations	174.0			154.8			34.9			(232.5		)	131.2
Other income	0.2			5.3			2.8			(6.0		)	2.3
Interest expense	(52.3		)	(4.7		)	(5.2		)	6.0			(56.2		)

Income before income tax expense (benefit)	121.9			155.4			32.5			(232.5		)	77.3
Income tax expense (benefit)	10.6			28.9			(86.6		)	—			(47.1		)

Net income	111.3			126.5			119.1			(232.5		)	124.4
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(13.1		)	—			(13.1		)

Net income attributable to AECOM	$	111.3		$	126.5		$	106.0		$	(232.5	)	$	111.3

	For the three months ended December 31, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	2,281.5		$	2,090.1		$	(13.3	)	$	4,358.3
Cost of revenue	—			2,161.2			2,040.4			(13.3		)	4,188.3

Gross profit	—			120.3			49.7			—			170.0
Equity in earnings from subsidiaries	117.6			25.0			—			(142.6		)	—
Equity in earnings of joint ventures	—			9.9			11.5			—			21.4
General and administrative expenses	(29.9		)	—			(2.7		)	—			(32.6		)
Acquisition and integration expenses	(15.4		)	—			—			—			(15.4		)

Income from operations	72.3			155.2			58.5			(142.6		)	143.4
Other income	0.4			7.6			2.9			(10.1		)	0.8
Interest expense	(47.8		)	(5.7		)	(10.2		)	10.1			(53.6		)

Income before income tax (benefit) expense	24.9			157.1			51.2			(142.6		)	90.6
Income tax (benefit) expense	(22.3		)	35.9			11.2			—			24.8

Net income	47.2			121.2			40.0			(142.6		)	65.8
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(18.6		)	—			(18.6		)

Net income attributable to AECOM	$	47.2		$	121.2		$	21.4		$	(142.6	)	$	47.2

Schedule of Consolidating Statements of Comprehensive Income

Consolidating Statements of Comprehensive Income (Loss)

(unaudited - in millions)

	For the three months ended December 31, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	111.3	$	126.5	$	119.1		$	(232.5	)	$	124.4
Other comprehensive income (loss), net of tax:
Net unrealized gain on derivatives, net of tax	0.7		—		0.1			—			0.8
Foreign currency translation adjustments	—		—		(6.0		)	—			(6.0		)
Pension adjustments, net of tax	0.8		—		1.7			—			2.5

Other comprehensive income (loss), net of tax	1.5		—		(4.2		)	—			(2.7		)

Comprehensive income, net of tax	112.8		126.5		114.9			(232.5		)	121.7
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—		—		(13.9		)	—			(13.9		)

Comprehensive income attributable to AECOM, net of tax	$	112.8	$	126.5	$	101.0		$	(232.5	)	$	107.8

	For the three months ended December 31, 2016
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	47.2	$	121.2	$	40.0		$	(142.6	)	$	65.8
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on derivatives, net of tax	2.9		—		(1.5		)	—			1.4
Foreign currency translation adjustments	—		—		(73.9		)	—			(73.9		)
Pension adjustments, net of tax	0.6		—		16.3			—			16.9

Other comprehensive income (loss), net of tax	3.5		—		(59.1		)	—			(55.6		)

Comprehensive income (loss), net of tax	50.7		121.2		(19.1		)	(142.6		)	10.2
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—		—		(18.3		)	—			(18.3		)

Comprehensive income (loss) attributable to AECOM, net of tax	$	50.7	$	121.2	$	(37.4	)	$	(142.6	)	$	(8.1	)

Schedule on Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

(unaudited - in millions)

	For the three months ended December 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total

CASH FLOWS FROM OPERATING ACTIVITIES	$	(64.4	)	$	4.8		$	112.0		$	—		$	52.4
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
Net investment in unconsolidated joint ventures	—			(3.6		)	(15.4		)	—			(19.0		)
Proceeds from sale of investments	—			—			0.2			—			0.2
Payments for capital expenditures, net of disposals	3.4			(17.0		)	(4.9		)	—			(18.5		)
Net receipts from (investment in) intercompany notes	0.6			(5.1		)	28.8			(24.3		)	—
Other intercompany investing activities	(4.2		)	82.1			—			(77.9		)	—

Net cash (used in) provided by investing activities	(0.2		)	56.4			18.5			(102.2		)	(27.5		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	1,240.8			—			35.7			—			1,276.5
Repayments of borrowings under credit agreements	(1,187.4		)	(4.7		)	(44.1		)	—			(1,236.2		)
Proceeds from issuance of common stock	9.5			—			—			—			9.5
Proceeds from exercise of stock options	2.7			—			—			—			2.7
Payments to repurchase common stock	(26.7		)	—			—			—			(26.7		)
Net distributions to noncontrolling interests	—			—			(16.8		)	—			(16.8		)
Other financing activities	0.9			(36.8		)	9.9			—			(26.0		)
Net (repayments) borrowings on intercompany notes	(3.7		)	(25.1		)	4.5			24.3			—
Other intercompany financing activities	—			(33.0		)	(44.9		)	77.9			—

Net cash provided by (used in) financing activities	36.1			(99.6		)	(55.7		)	102.2			(17.0		)

EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			2.9			—			2.9
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(28.5		)	(38.4		)	77.7			—			10.8
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	32.6			251.6			518.2			—			802.4

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	4.1		$	213.2		$	595.9		$	—		$	813.2

Condensed Consolidating Statements of Cash Flows

(unaudited - in millions)

	For the three months ended December 31, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total

CASH FLOWS FROM OPERATING ACTIVITIES	$	(27.0	)	$	83.2		$	21.3		$	—		$	77.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Net investment in unconsolidated joint ventures	—			(0.8		)	(17.3		)	—			(18.1		)
Proceeds from sale of investments	—			—			0.3			—			0.3
Payments for capital expenditures, net of disposals	(7.2		)	(9.7		)	(4.1		)	—			(21.0		)
Net investment in intercompany notes	(0.5		)	(8.7		)	(1.2		)	10.4			—
Other intercompany investing activities	32.1			14.4			—			(46.5		)	—

Net cash provided by (used in) investing activities	24.4			(4.8		)	(22.3		)	(36.1		)	(38.8		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	1,634.2			—			0.6			—			1,634.8
Repayments of borrowings under credit agreements	(1,595.2		)	(6.4		)	(5.8		)	—			(1,607.4		)
Proceeds from issuance of common stock	9.9			—			—			—			9.9
Proceeds from exercise of stock options	2.1			—			—			—			2.1
Payments to repurchase common stock	(17.5		)	—			—			—			(17.5		)
Net distributions to noncontrolling interests	—			—			(21.9		)	—			(21.9		)
Other financing activities	(10.7		)	(65.5		)	49.8			—			(26.4		)
Net borrowings on intercompany notes	—			1.1			9.3			(10.4		)	—
Other intercompany financing activities	—			(31.8		)	(14.7		)	46.5			—

Net cash provided by (used in) financing activities	22.8			(102.6		)	17.3			36.1			(26.4		)

EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(6.7		)	—			(6.7		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	20.2			(24.2		)	9.6			—			5.6
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	1.8			183.7			506.6			—			692.1

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	22.0		$	159.5		$	516.2		$	—		$	697.7