Condensed Consolidating Financial Information (Tables)

3 Months Ended

Dec. 31, 2018

Condensed Consolidating Financial Information

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

(unaudited - in millions)

December 31, 2018


			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	1.7	$	315.0	$	521.6	$	—		838.3
Accounts receivable and contract assets—net		—		2,580.0		2,965.6		—		5,545.6
Intercompany receivable		954.6		119.5		153.2		(1,227.3)		—
Prepaid expenses and other current assets		91.1		327.6		262.7		—		681.4
Current assets held for sale		—		—		58.7		—		58.7
Income taxes receivable		83.4		—		42.3		—		125.7
TOTAL CURRENT ASSETS		1,130.8		3,342.1		4,004.1		(1,227.3)		7,249.7
PROPERTY AND EQUIPMENT—NET		206.0		208.3		186.7		—		601.0
DEFERRED TAX ASSETS—NET		172.1		16.3		147.1		(167.6)		167.9
INVESTMENTS IN CONSOLIDATED SUBSIDIARIES		6,658.6		1,993.7		—		(8,652.3)		—
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES		6.6		49.3		285.1		—		341.0
GOODWILL		—		3,392.7		2,500.8		—		5,893.5
INTANGIBLE ASSETS—NET		—		207.0		89.7		—		296.7
OTHER NON-CURRENT ASSETS		38.5		45.3		134.1		—		217.9
TOTAL ASSETS	$	8,212.6	$	9,254.7	$	7,347.6	$	(10,047.2)		14,767.7

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt	$	16.1	$	—	$	30.0	$	—		46.1
Accounts payable		65.9		1,564.4		994.3		—		2,624.6
Accrued expenses and other current liabilities		64.1		981.6		1,135.1		—		2,180.8
Income taxes payable		19.7		—		28.4		—		48.1
Intercompany payable		107.6		832.3		435.9		(1,375.8)		—
Contract liabilities		—		333.9		674.3		—		1,008.2
Current liabilities held for sale		—		—		18.4		—		18.4
Current portion of long-term debt		43.6		27.3		43.8		—		114.7
TOTAL CURRENT LIABILITIES		317.0		3,739.5		3,360.2		(1,375.8)		6,040.9
OTHER LONG-TERM LIABILITIES		118.1		247.9		346.5		—		712.5
DEFERRED TAX LIABILITY–NET		—		63.0		108.9		(167.5)		4.4
NOTE PAYABLE INTERCOMPANY–NON CURRENT		806.4		—		492.8		(1,299.2)		—
LONG-TERM DEBT		2,934.0		293.8		531.7		—		3,759.5
TOTAL LIABILITIES		4,175.5		4,344.2		4,840.1		(2,842.5)		10,517.3
TOTAL AECOM STOCKHOLDERS’ EQUITY		4,037.1		4,910.5		2,334.9		(7,204.7)		4,077.8
Noncontrolling interests		—		—		172.6		—		172.6
TOTAL STOCKHOLDERS’ EQUITY		4,037.1		4,910.5		2,507.5		(7,204.7)		4,250.4
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	8,212.6	$	9,254.7	$	7,347.6	$	(10,047.2)	$	14,767.7

Condensed Consolidating Balance Sheets

(in millions)

September 30, 2018


			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
ASSETS
CURRENT ASSETS:
Total cash and cash equivalents	$	22.0	$	270.9	$	593.8	$	—	$	886.7
Accounts receivable and contract assets—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)		—
Contract liabilities		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

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations

(unaudited - in millions)


	For the three months ended December 31, 2018
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	—	$	2,703.6	$	2,354.8	$	(20.9)	$	5,037.5
Cost of revenue		—		2,601.4		2,286.4		(20.9)		4,866.9
Gross profit		—		102.2		68.4		—		170.6
Equity in earnings from subsidiaries		153.5		(52.4)		—		(101.1)		—
Equity in earnings of joint ventures		—		9.9		2.6		—		12.5
General and administrative expenses		(34.2)		—		(1.7)		—		(35.9)
Restructuring costs		(63.3)		—		—		—		(63.3)
Income from operations		56.0		59.7		69.3		(101.1)		83.9
Other income		1.2		11.9		3.8		(13.3)		3.6
Interest expense		(49.5)		(5.0)		(14.8)		13.3		(56.0)
Income before income tax (benefit) expense		7.7		66.6		58.3		(101.1)		31.5
Income tax (benefit) expense		(43.7)		5.8		4.3		—		(33.6)
Net income		51.4		60.8		54.0		(101.1)		65.1
Noncontrolling interests in income of consolidated subsidiaries, net of tax		—		—		(13.6)		—		(13.6)
Net income attributable to AECOM	$	51.4	$	60.8	$	40.4	$	(101.1)	$	51.5


	For the three months ended December 31, 2017
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Revenue	$	—	$	2,721.3	$	2,201.5	$	(12.0)	$	4,910.8
Cost of revenue		—		2,607.8		2,178.8		(12.0)		4,774.6
Gross profit		—		113.5		22.7		—		136.2
Equity in earnings from subsidiaries		206.1		183.2		—		(389.3)		—
Equity in earnings of joint ventures		—		17.2		12.5		—		29.7
General and administrative expenses		(32.1)		—		(2.6)		—		(34.7)
Income from operations		174.0		313.9		32.6		(389.3)		131.2
Other income		0.2		5.4		2.7		(6.0)		2.3
Interest expense		(52.3)		(4.6)		(5.3)		6.0		(56.2)
Income before income tax expense (benefit)		121.9		314.7		30.0		(389.3)		77.3
Income tax expense (benefit)		10.6		112.5		(170.2)		—		(47.1)
Net income		111.3		202.2		200.2		(389.3)		124.4
Noncontrolling interest in income of consolidated subsidiaries, net of tax		—		—		(13.1)		—		(13.1)
Net income attributable to AECOM	$	111.3	$	202.2	$	187.1	$	(389.3)	$	111.3

Schedule of Consolidating Statements of Comprehensive Income

Consolidating Statements of Comprehensive Income

(unaudited - in millions)


	For the three months ended December 31, 2018
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Net income	$	51.4	$	60.8	$	54.0	$	(101.1)	$	65.1
Other comprehensive loss, net of tax:
Net unrealized loss on derivatives, net of tax		(2.4)		—		(3.9)		—		(6.3)
Foreign currency translation adjustments		—		—		(21.8)		—		(21.8)
Pension adjustments, net of tax		0.7		—		4.6		—		5.3
Other comprehensive loss, net of tax		(1.7)		—		(21.1)		—		(22.8)
Comprehensive income , net of tax		49.7		60.8		32.9		(101.1)		42.3
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax		—		—		(13.6)		—		(13.6)
Comprehensive income attributable to AECOM, net of tax	$	49.7	$	60.8	$	19.3	$	(101.1)	$	28.7


	For the three months ended December 31, 2017
			Guarantor		Non-Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total
Net income	$	111.3	$	202.2	$	200.2	$	(389.3)	$	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		202.2		196.0		(389.3)		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	$	202.2	$	182.1	$	(389.3)	$	107.8

Schedule on Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

(unaudited - in millions)


	For the three months ended December 31, 2018
					Non-
			Guarantor		Guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations		Total

CASH FLOWS FROM OPERATING ACTIVITIES	$	(57.3)	$	(22.2)	$	(120.9)	$	—	$	(200.4)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net investment in unconsolidated joint ventures		(0.9)		(6.8)		(30.7)		—		(38.4)
Net proceeds from sale of investments		—		—		0.6		—		0.6
Payments for capital expenditures, net of disposals		(9.8)		(5.7)		(6.4)		—		(21.9)
Net receipts from (investment in) intercompany notes		19.3		61.9		(8.4)		(72.8)		—
Other intercompany investing activities		(227.2)		(287.2)		—		514.4		—
Net cash used in investing activities		(218.6)		(237.8)		(44.9)		441.6		(59.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements		2,254.8		—		35.6		—		2,290.4
Repayments of borrowings under credit agreements		(1,959.7)		(4.7)		(34.7)		—		(1,999.1)
Proceeds from issuance of common stock		5.4		—		—		—		5.4
Payments to repurchase common stock		(52.3)		—		—		—		(52.3)
Net distributions to noncontrolling interests		—		—		(28.8)		—		(28.8)
Other financing activities		1.4		(9.1)		5.3		—		(2.4)
Net (repayments) borrowings on intercompany notes		6.0		7.9		(86.7)		72.8		—
Other intercompany financing activities		—		310.0		204.4		(514.4)		—
Net cash provided by financing activities		255.6		304.1		95.1		(441.6)		213.2
EFFECT OF EXCHANGE RATE CHANGES ON CASH		—		—		(1.5)		—		(1.5)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(20.3)		44.1		(72.2)		—		(48.4)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		22.0		270.9		593.8		—		886.7
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	1.7	$	315.0	$	521.6	$	—	$	838.3

Condensed Consolidating Statements of Cash Flows

(unaudited - in millions)


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

CASH FLOWS FROM OPERATING ACTIVITIES	$	(62.8)	$	28.1	$	87.1	$	—	$	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		(17.5)		(4.4)		—		(18.5)
Net receipts from (investment in) intercompany notes		0.6		(5.1)		28.8		(24.3)		—
Other intercompany investing activities		(5.8)		67.2		—		(61.4)		—
Net cash (used in) provided by investing activities		(1.8)		41.0		19.0		(85.7)		(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		—		(34.7)		(26.7)		61.4		—
Net cash provided by (used in) financing activities		36.1		(101.3)		(37.5)		85.7		(17.0)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		—		—		2.9		—		2.9
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(28.5)		(32.2)		71.5		—		10.8
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		32.6		254.9		514.9		—		802.4
CASH AND CASH EQUIVALENTS AT END OF YEAR	$	4.1	$	222.7	$	586.4	$	—	$	813.2