Condensed Consolidating Financial Information (Tables)

6 Months Ended

Mar. 31, 2018

Condensed Consolidating Financial Information

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

(unaudited — in millions)

March 31, 2018

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	4.6	$	262.3	$	600.3	$	—		$	867.2
Accounts receivable—net	—		2,556.0		2,652.9		—			5,208.9
Intercompany receivable	735.9		78.0		135.3		(949.2		)	—
Prepaid expenses and other current assets	66.8		332.8		249.0		—			648.6
Current assets held for sale	—		—		116.8		—			116.8
Income taxes receivable	30.1		—		52.4		—			82.5

TOTAL CURRENT ASSETS	837.4		3,229.1		3,806.7		(949.2		)	6,924.0
PROPERTY AND EQUIPMENT—NET	176.5		225.3		181.6		—			583.4
DEFERRED TAX ASSETS—NET	149.9		56.0		172.6		(158.6		)	219.9
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES	6,797.7		2,280.9		—		(9,078.6		)	—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	10.9		60.1		313.9		—			384.9
GOODWILL	—		3,392.7		2,549.9		—			5,942.6
INTANGIBLE ASSETS—NET	—		243.3		124.9		—			368.2
OTHER NON-CURRENT ASSETS	50.3		49.3		94.7		—			194.3

TOTAL ASSETS	$	8,022.7	$	9,536.7	$	7,244.3	$	(10,186.4	)	$	14,617.3


LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	9.8	$	—	$	—	$	—		$	9.8
Accounts payable	31.1		1,368.9		886.2		—			2,286.2
Accrued expenses and other current liabilities	56.7		1,052.0		1,059.0		—			2,167.7
Income taxes payable	—		—		28.4		—			28.4
Intercompany payable	93.4		777.0		164.9		(1,035.3		)	—
Billings in excess of costs on uncompleted contracts	2.4		350.3		626.7		—			979.4
Current liabilities held for sale	—		—		46.5		—			46.5
Current portion of long-term debt	36.5		26.2		61.2		—			123.9

TOTAL CURRENT LIABILITIES	229.9		3,574.4		2,872.9		(1,035.3		)	5,641.9
OTHER LONG-TERM LIABILITIES	138.8		264.7		485.9		—			889.4
DEFERRED TAX LIABILITY—NET	—		—		165.0		(158.6		)	6.4
NOTE PAYABLE INTERCOMPANY—NON CURRENT	671.4		—		477.3		(1,148.7		)	—
LONG-TERM DEBT	2,949.3		277.1		588.6		—			3,815.0

TOTAL LIABILITIES	3,989.4		4,116.2		4,589.7		(2,342.6		)	10,352.7
TOTAL AECOM STOCKHOLDERS’ EQUITY	4,033.3		5,420.5		2,430.7		(7,843.8		)	4,040.7
Noncontrolling interests	—		—		223.9		—			223.9

TOTAL STOCKHOLDERS’ EQUITY	4,033.3		5,420.5		2,654.6		(7,843.8		)	4,264.6

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,022.7	$	9,536.7	$	7,244.3	$	(10,186.4	)	$	14,617.3

Condensed Consolidating Balance Sheets

(unaudited - in millions)

September 30, 2017

	Parent		Guarantor Subsidiaries		Non-Guarantor 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

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

(unaudited - in millions)

	For the three months ended March 31, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	2,690.7		$	2,130.0		$	(29.8	)	$	4,790.9

Cost of revenue	—			2,610.4			2,069.1			(29.8		)	4,649.7

Gross profit	—			80.3			60.9			—			141.2

Equity in earnings from subsidiaries	(18.2		)	(120.2		)	—			138.4			—
Equity in earnings of joint ventures	—			6.8			6.3			—			13.1
General and administrative expenses	(27.3		)	—			(2.9		)	—			(30.2		)
Impairment of assets held for sale, including goodwill	—			—			(168.2		)	—			(168.2		)

Loss from operations	(45.5		)	(33.1		)	(103.9		)	138.4			(44.1		)

Other income	10.2			5.1			4.0			(6.8		)	12.5
Interest expense	(93.0		)	(4.3		)	(10.0		)	6.8			(100.5		)

Loss before income tax (benefit) expense	(128.3		)	(32.3		)	(109.9		)	138.4			(132.1		)

Income tax (benefit) expense	(8.6		)	(17.6		)	1.8			—			(24.4		)

Net loss	(119.7		)	(14.7		)	(111.7		)	138.4			(107.7		)
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(12.0		)	—			(12.0		)

Net loss attributable to AECOM	$	(119.7	)	$	(14.7	)	$	(123.7	)	$	138.4		$	(119.7	)

	For the three months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	2,562.5		$	1,855.6		$	9.1		$	4,427.2

Cost of revenue	—			2,467.9			1,781.8			9.1			4,258.8

Gross profit	—			94.6			73.8			—			168.4

Equity in earnings from subsidiaries	166.0			102.0			—			(268.0		)	—
Equity in earnings of joint ventures	—			9.1			12.7			—			21.8
General and administrative expenses	(28.1		)	—			(1.8		)	—			(29.9		)
Acquisition and integration expenses	(20.0		)	—			—			—			(20.0		)
Gain on disposal activity	—			—			0.6			—			0.6

Income from operations	117.9			205.7			85.3			(268.0		)	140.9

Other income	0.5			8.4			1.5			(9.1		)	1.3
Interest expense	(55.1		)	(6.0		)	(9.8		)	9.1			(61.8		)

Income before income tax (benefit) expense	63.3			208.1			77.0			(268.0		)	80.4

Income tax (benefit) expense	(39.1		)	41.4			(37.7		)	—			(35.4		)

Net income	102.4			166.7			114.7			(268.0		)	115.8
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(13.4		)	—			(13.4		)

Net income attributable to AECOM	$	102.4		$	166.7		$	101.3		$	(268.0	)	$	102.4

Condensed Consolidating Statements of Operations

(unaudited - in millions)

	For the six months ended March 31, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	5,412.0		$	4,331.5		$	(41.8	)	$	9,701.7

Cost of revenue	—			5,218.2			4,247.9			(41.8		)	9,424.3

Gross profit	—			193.8			83.6			—			277.4

Equity in earnings from subsidiaries	187.9			63.0			—			(250.9		)	—
Equity in earnings of joint ventures	—			24.0			18.8			—			42.8
General and administrative expenses	(59.4		)	—			(5.5		)	—			(64.9		)
Impairment of assets held for sale, including goodwill	—			—			(168.2		)	—			(168.2		)

Income/(loss) from operations	128.5			280.8			(71.3		)	(250.9		)	87.1

Other income	10.4			10.5			6.7			(12.8		)	14.8
Interest expense	(145.3		)	(8.9		)	(15.3		)	12.8			(156.7		)

(Loss) income before income tax expense (benefit)	(6.4		)	282.4			(79.9		)	(250.9		)	(54.8		)

Income tax expense (benefit)	2.0			94.9			(168.4		)	—			(71.5		)

Net (loss) income	(8.4		)	187.5			88.5			(250.9		)	16.7
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(25.1		)	—			(25.1		)

Net (loss) income attributable to AECOM	$	(8.4	)	$	187.5		$	63.4		$	(250.9	)	$	(8.4	)

	For the six months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Revenue	$	—		$	5,095.2		$	3,694.5		$	(4.2	)	$	8,785.5

Cost of revenue	—			4,883.9			3,567.4			(4.2		)	8,447.1

Gross profit	—			211.3			127.1			—			338.4

Equity in earnings from subsidiaries	283.6			131.2			—			(414.8		)	—
Equity in earnings of joint ventures	—			22.0			21.2			—			43.2
General and administrative expenses	(58.0		)	—			(4.5		)	—			(62.5		)
Acquisition and integration expenses	(35.4		)	—			—			—			(35.4		)
Gain on disposal activity	—			—			0.6			—			0.6

Income from operations	190.2			364.5			144.4			(414.8		)	284.3

Other income	0.9			16.0			4.4			(19.2		)	2.1
Interest expense	(102.9		)	(11.6		)	(20.1		)	19.2			(115.4		)

Income before income tax (benefit) expense	88.2			368.9			128.7			(414.8		)	171.0

Income tax (benefit) expense	(61.4		)	77.4			(26.6		)	—			(10.6		)

Net income	149.6			291.5			155.3			(414.8		)	181.6
Noncontrolling interest in income of consolidated subsidiaries, net of tax	—			—			(32.0		)	—			(32.0		)

Net income attributable to AECOM	$	149.6		$	291.5		$	123.3		$	(414.8	)	$	149.6

Schedule of Consolidating Statements of Comprehensive Income (Loss)

Consolidating Statements of Comprehensive Income (Loss)

(unaudited - in millions)

	For the three months ended March 31, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Total
Net loss	$	(119.7	)	$	(14.7	)	$	(111.7	)	$	138.4	$	(107.7	)
Other comprehensive income (loss), net of tax:
Net unrealized loss on derivatives, net of tax	(0.1		)	—			(1.6		)	—		(1.7		)
Foreign currency translation adjustments	—			—			15.5			—		15.5
Pension adjustments, net of tax	0.7			—			(16.8		)	—		(16.1		)

Other comprehensive income (loss), net of tax	0.6			—			(2.9		)	—		(2.3		)

Comprehensive loss, net of tax	(119.1		)	(14.7		)	(114.6		)	138.4		(110.0		)
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—			—			(12.6		)	—		(12.6		)

Comprehensive loss attributable to AECOM, net of tax	$	(119.1	)	$	(14.7	)	$	(127.2	)	$	138.4	$	(122.6	)

	For the three months ended March 31, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	102.4	$	166.7	$	114.7		$	(268.0	)	$	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		166.7		154.5			(268.0		)	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	$	166.7	$	140.7		$	(268.0	)	$	143.7

Consolidating Statements of Comprehensive Income (Loss)

(unaudited - in millions)

	For the six months ended March 31, 2018
	Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income (loss)	$	(8.4	)	$	187.5	$	88.5		$	(250.9	)	$	16.7
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on derivatives, net of tax	0.6			—		(1.5		)	—			(0.9		)
Foreign currency translation adjustments	—			—		9.5			—			9.5
Pension adjustments, net of tax	1.5			—		(15.1		)	—			(13.6		)

Other comprehensive income (loss), net of tax	2.1			—		(7.1		)	—			(5.0		)

Comprehensive (loss) income, net of tax	(6.3		)	187.5		81.4			(250.9		)	11.7
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	—			—		(26.5		)	—			(26.5		)

Comprehensive loss attributable to AECOM, net of tax	$	(6.3	)	$	187.5	$	54.9		$	(250.9	)	$	(14.8	)

	For the six months ended March 31, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Total
Net income	$	149.6	$	291.5	$	155.3		$	(414.8	)	$	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		291.5		136.0			(414.8		)	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	$	291.5	$	103.9		$	(414.8	)	$	135.6

Schedule on Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

(unaudited - in millions)

	For the six months ended March 31, 2018
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total

CASH FLOWS FROM OPERATING ACTIVITIES	$	(149.6	)	$	121.0		$	199.4		$	—		$	170.8
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	(3.7		)	(9.3		)	(42.6		)	—			(55.6		)
Proceeds from sales of investments	—			—			0.2			—			0.2
Payments for capital expenditures, net of disposals	(6.7		)	(26.6		)	(8.9		)	—			(42.2		)
Net investment in intercompany notes	(1.7		)	(611.1		)	(61.9		)	674.7			—
Other intercompany investing activities	5.9			627.3			—			(633.2		)	—

Net cash used in investing activities	(6.2		)	(19.7		)	(103.4		)	41.5			(87.8		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	5,049.0			—			664.4			—			5,713.4
Repayments of borrowings under credit agreements	(4,743.9		)	(9.5		)	(83.1		)	—			(4,836.5		)
Redemption of unsecured senior notes	(800.0		)	—			—			—			(800.0		)
Prepayment premium on redemption of unsecured senior notes	(34.5		)	—			—			—			(34.5		)
Cash paid for debt issuance costs	(10.4		)	—			—			—			(10.4		)
Proceeds from issuance of common stock	15.5			—			—			—			15.5
Proceeds from exercise of stock options	3.2			—			—			—			3.2
Payments to repurchase common stock	(27.2		)	—			—			—			(27.2		)
Net distributions to noncontrolling interests	—			—			(24.1		)	—			(24.1		)
Other financing activities	6.2			(48.0		)	18.1			—			(23.7		)
Net borrowings (repayments) on intercompany notes	669.9			(16.7		)	21.5			(674.7		)	—
Other intercompany financing activities	—			(19.7		)	(613.5		)	633.2			—

Net cash provided by (used in) financing activities	127.8			(93.9		)	(16.7		)	(41.5		)	(24.3		)

EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			6.1			—			6.1
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(28.0		)	7.4			85.4			—			64.8
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	32.6			254.9			514.9			—			802.4

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	4.6		$	262.3		$	600.3		$	—		$	867.2

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	)	$	117.3		$	51.6		$	—		$	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	—			(0.7		)	(21.3		)	—			(22.0		)
Proceeds from sales of investments	—			—			0.6			—			0.6
Payments for capital expenditures, net of disposals	(10.2		)	(18.0		)	(10.5		)	—			(38.7		)
Net (investment in) receipts from intercompany notes	(6.8		)	(3.6		)	20.5			(10.1		)	—
Other intercompany investing activities	44.5			(70.6		)	0.1			26.0			—

Net cash provided by (used in) investing activities	27.5			(92.9		)	(8.4		)	15.9			(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		)
Proceeds from issuance of unsecured senior notes	1,000.0			—			—			—			1,000.0
Cash paid for debt 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 (repayments) on intercompany notes	1.0			(20.5		)	9.4			10.1			—
Other intercompany financing activities	—			60.2			(34.2		)	(26.0		)	—

Net cash provided by (used in) financing activities	114.5			(8.8		)	(25.7		)	(15.9		)	64.1

EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(3.7		)	—			(3.7		)
NET INCREASE IN CASH AND CASH EQUIVALENTS	4.5			15.6			13.8			—			33.9
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	1.8			196.3			494.0			—			692.1

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	6.3		$	211.9		$	507.8		$	—		$	726.0