View Filing Data

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2010	Sep. 30, 2009
CURRENT ASSETS:
Cash and cash equivalents	$ 570,521	$ 263,489
Cash in consolidated joint ventures	42,336	27,288
Total cash and cash equivalents	612,857	290,777
Accounts receivable-net	2,170,188	1,732,959
Prepaid expenses and other current assets	157,840	82,195
Current assets held for sale		74,527
Deferred tax assets-net	5,614	34,077
TOTAL CURRENT ASSETS	2,946,499	2,214,535
PROPERTY AND EQUIPMENT-NET	258,784	228,835
DEFERRED TAX ASSETS-NET	105,030	91,139
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	53,235	34,505
GOODWILL	1,690,386	1,062,919
INTANGIBLE ASSETS-NET	108,645	61,979
OTHER NON-CURRENT ASSETS	80,330	95,969
TOTAL ASSETS	5,242,909	3,789,881
CURRENT LIABILITIES:
Short-term debt	2,087	13,268
Accounts payable	589,076	401,239
Accrued expenses and other current liabilities	902,824	722,531
Billings in excess of costs on uncompleted contracts	341,959	333,952
Income taxes payable	1,960	19,585
Current liabilities held for sale		50,325
Current portion of long-term debt	14,354	15,839
TOTAL CURRENT LIABILITIES	1,852,260	1,556,739
OTHER LONG-TERM LIABILITIES	337,494	336,635
LONG-TERM DEBT	914,686	142,102
TOTAL LIABILITIES	$ 3,104,440	$ 2,035,476
COMMITMENTS AND CONTINGENCIES (Note 21)
AECOM STOCKHOLDERS' EQUITY:
Common stock-authorized, 150,000,000 shares of $0.01 par value; issued and outstanding, 115,316,783 and 110,890,075 shares, as of September 30, 2010 and 2009, respectively	$ 1,153	$ 1,109
Additional paid-in capital	1,585,044	1,458,326
Accumulated other comprehensive loss	(147,521)	(146,575)
Retained earnings	651,105	414,345
TOTAL AECOM STOCKHOLDERS' EQUITY	2,090,012	1,729,718
Non-controlling interests	48,457	24,687
TOTAL STOCKHOLDERS' EQUITY	2,138,469	1,754,405
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	5,242,909	3,789,881
Convertible Preferred Stock
AECOM STOCKHOLDERS' EQUITY:
Preferred stock	231	2,513
Preferred stock, Class C
AECOM STOCKHOLDERS' EQUITY:
Preferred stock	0	0
Preferred stock, Class E
AECOM STOCKHOLDERS' EQUITY:
Preferred stock	$ 0	$ 0

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Statement
Revenue	$ 6,545,791	$ 6,119,465	$ 5,194,682
Cost of revenue	6,115,520	5,768,262	4,907,784
Gross profit	430,271	351,203	286,898
Equity in earnings of joint ventures	20,987	22,557	22,191
General and administrative expense	110,463	86,894	70,582
Income from operations	340,795	286,866	238,507
Other income (expense)	10,250	1,713	(3,438)
Interest (expense) income, net	(9,928)	(10,691)	1,336
Income from continuing operations before income tax expense	341,117	277,888	236,405
Income tax expense	91,696	77,002	76,493
Income from continuing operations	249,421	200,886	159,912
Discontinued operations, net of tax	(77)	2,992	704
Net income	249,344	203,878	160,616
Non-controlling interests in income of consolidated subsidiaries, net of tax	(12,457)	(14,182)	(13,390)
Net income attributable to AECOM	236,887	189,696	147,226
Net income allocation:
Preferred stock dividend	127	139	168
Net income available for common stockholders	236,760	189,557	147,058
Net income attributable to AECOM	$ 236,887	$ 189,696	$ 147,226
Basic
Continuing operations (in dollars per share)	$ 2.07	$ 1.73	$ 1.44
Discontinued operations (in dollars per share)		0.03	0.01
Total Basic (in dollars per share)	2.07	1.76	1.45
Diluted
Continuing operations (in dollars per share)	2.05	1.70	1.41
Discontinued operations (in dollars per share)		0.03
Total Diluted (in dollars per share)	$ 2.05	$ 1.73	$ 1.41
Weighted average shares outstanding:
Basic (in shares)	114,344	108,003	101,456
Diluted (in shares)	115,463	109,706	104,215

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Increase (Decrease) in Stockholders' Equity
BALANCE	$ 1,754,405	$ 1,443,043	$ 1,299,574
Comprehensive income (loss), net of tax:
Net income	249,344	203,878	160,616
Foreign currency translation adjustments	32,142	(14,538)	(45,369)
Defined benefit minimum pension liability adjustment, net of tax	(34,219)	(19,155)	(39,670)
Swap valuation	1,131	(830)	(299)
Total comprehensive income, net of tax	248,398	169,355	75,278
Cumulative effect of adoption of accounting principle [(Note 11) for 2009 and (Note 19) for 2008]		2,908	(244)
Proceeds from the issuance of stock in secondary public offering, net of $0.6 million of offering costs		91,433
Retirement plan participants' diversification		(29,120)
Issuance of stock	79,302	39,478	33,020
Repurchases of stock	(17,171)	(13,493)	(13,937)
Proceeds from exercise of options	10,310	19,406	19,048
Tax benefit from exercise of stock options	17,306	14,969	20,586
Stock based compensation	34,606	25,971	24,147
Other transactions with non-controlling interests	4,801	764	(3,301)
Contributions from non-controlling interests	17,488	0
Distributions to non-controlling interests	(10,976)	(10,309)	(11,128)
BALANCE	2,138,469	1,754,405	1,443,043
Total AECOM Stockholders' Equity
Increase (Decrease) in Stockholders' Equity
BALANCE	1,729,718	1,422,993	1,278,485
Comprehensive income (loss), net of tax:
Net income	236,887	189,696	147,226
Foreign currency translation adjustments	32,142	(14,538)	(45,369)
Defined benefit minimum pension liability adjustment, net of tax	(34,219)	(19,155)	(39,670)
Swap valuation	1,131	(830)	(299)
Total comprehensive income, net of tax	235,941	155,173	61,888
Cumulative effect of adoption of accounting principle [(Note 11) for 2009 and (Note 19) for 2008]		2,908	(244)
Proceeds from the issuance of stock in secondary public offering, net of $0.6 million of offering costs		91,433
Retirement plan participants' diversification		(29,120)
Issuance of stock	79,302	39,478	33,020
Repurchases of stock	(17,171)	(13,493)	(13,937)
Proceeds from exercise of options	10,310	19,406	19,048
Tax benefit from exercise of stock options	17,306	14,969	20,586
Stock based compensation	34,606	25,971	24,147
Contributions from non-controlling interests		0	0
BALANCE	2,090,012	1,729,718	1,422,993
Common Stock
Increase (Decrease) in Stockholders' Equity
BALANCE	1,109	1,030	991
Comprehensive income (loss), net of tax:
Proceeds from the issuance of stock in secondary public offering, net of $0.6 million of offering costs		46
Issuance of stock	32	16	12
Repurchases of stock	(7)	(14)	(10)
Proceeds from exercise of options	10	23	8
Stock based compensation	9	8	29
BALANCE	1,153	1,109	1,030
Additional Paid-In Capital
Increase (Decrease) in Stockholders' Equity
BALANCE	1,458,326	1,309,493	1,224,164
Comprehensive income (loss), net of tax:
Proceeds from the issuance of stock in secondary public offering, net of $0.6 million of offering costs		91,387
Retirement plan participants' diversification		(29,120)
Issuance of stock	79,270	39,462	33,008
Repurchases of stock	(14,755)	(13,211)	(11,423)
Proceeds from exercise of options	10,300	19,383	19,040
Tax benefit from exercise of stock options	17,306	14,969	20,586
Stock based compensation	34,597	25,963	24,118
BALANCE	1,585,044	1,458,326	1,309,493
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity
BALANCE	(146,575)	(111,549)	(26,211)
Comprehensive income (loss), net of tax:
Foreign currency translation adjustments	32,142	(14,538)	(45,369)
Defined benefit minimum pension liability adjustment, net of tax	(34,219)	(19,658)	(39,670)
Swap valuation	1,131	(830)	(299)
BALANCE	(147,521)	(146,575)	(111,549)
Retained Earnings
Increase (Decrease) in Stockholders' Equity
BALANCE	414,345	221,377	74,563
Comprehensive income (loss), net of tax:
Net income	236,887	189,696	147,226
Defined benefit minimum pension liability adjustment, net of tax		503
Cumulative effect of adoption of accounting principle [(Note 11) for 2009 and (Note 19) for 2008]		2,908	(244)
Preferred stock dividend	(127)	(139)	(168)
BALANCE	651,105	414,345	221,377
Non-Controlling Interests
Increase (Decrease) in Stockholders' Equity
BALANCE	24,687	20,050	21,089
Comprehensive income (loss), net of tax:
Net income	12,457	14,182	13,390
Total comprehensive income, net of tax	12,457	14,182	13,390
Other transactions with non-controlling interests	4,801	764	(3,301)
Contributions from non-controlling interests	17,488
Distributions to non-controlling interests	(10,976)	(10,309)	(11,128)
BALANCE	48,457	24,687	20,050
Comprehensive Income
Comprehensive income (loss), net of tax:
Net income	249,344	203,878	160,616
Foreign currency translation adjustments	32,142	(14,538)	(45,369)
Defined benefit minimum pension liability adjustment, net of tax	(34,219)	(19,155)	(39,670)
Swap valuation	1,131	(830)	(299)
Total comprehensive income, net of tax	248,398	169,355	75,278
Convertible Preferred Stock \| Preferred Stock
Increase (Decrease) in Stockholders' Equity
BALANCE	2,513	2,642	4,978
Comprehensive income (loss), net of tax:
Repurchases of stock	(2,409)	(268)	(2,504)
Preferred stock dividend	127	139	168
BALANCE	$ 231	$ 2,513	$ 2,642

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 249,344	$ 203,878	$ 160,616
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	78,899	84,117	62,752
Equity in earnings of unconsolidated joint ventures	(20,987)	(22,557)	(22,191)
Distribution of earnings from unconsolidated joint ventures	8,319	18,689	20,162
Non-cash stock compensation	34,606	25,971	24,147
Excess tax benefit from share based payment	(17,306)	(14,969)	(20,586)
Other non-cash (income) expense	(2,335)	1,300
Foreign currency translation	11,419	(17,692)	(16,989)
Deferred income tax (benefit) expense	21,840	(3,210)	(34,470)
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(234,247)	(67,853)	(150,932)
Prepaid expenses and other assets	(17,001)	(15,887)	33,100
Accounts payable	57,037	(8,064)	36,113
Accrued expenses and other current liabilities	20,837	375	50,606
Billings in excess of costs on uncompleted contracts	(21,793)	35,542	46,910
Other long-term liabilities	19,732	(6,114)	(36,106)
Income taxes payable	(25,502)	12,534	14,091
Net cash provided by operating activities from continuing operations	162,862	226,060	167,223
Net cash (used in) provided by operating activities from discontinued operations	(4,227)	2,580	1,732
Net cash provided by operating activities	158,635	228,640	168,955
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for business acquisitions, net of cash acquired	(559,355)	(35,719)	(656,920)
Proceeds from disposal of businesses	29,794		90,020
Net investment in unconsolidated joint ventures	8,349	2,904	(4,653)
(Purchase) sales of investment securities	(24,825)	81,449	119,334
Payments for capital expenditures	(68,490)	(62,924)	(69,086)
Net cash used in investing activities	(614,527)	(14,290)	(521,305)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	1,985,000	22,540	582,050
Repayments of borrowings under credit agreements	(1,234,880)	(255,168)	(269,965)
Proceeds from issuance of common stock	3,502	101,019	9,171
Proceeds from exercise of stock options	10,310	19,406	19,048
Payments to repurchase common stock	(17,171)	(13,493)	(13,937)
Excess tax benefit from share based payment	17,306	14,969	20,586
Net contributions from (distributions to) non-controlling interests	6,512	(10,309)	(11,128)
Cumulative effect of adoption of accounting principle			(244)
Net cash provided by (used in) financing activities	770,579	(121,036)	335,581
EFFECT OF EXCHANGE RATE CHANGES ON CASH	7,393	341	(3,020)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	322,080	93,655	(19,789)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	290,777	197,122	216,911
CASH AND CASH EQUIVALENTS AT END OF YEAR	612,857	290,777	197,122
SUPPLEMENTAL CASH FLOW INFORMATION:
Retirement of fully depreciated equipment (non-cash)	18,801	16,279	16,506
Deferred compensation plan participants' diversification (non-cash)	303	29,120
Equity issued for acquisitions (non-cash)	65,300	16,946	23,849
Equity issued to settle liabilities (non-cash)	10,500	12,946
Interest paid	8,642	15,848	9,474
Income taxes paid, net of refunds received	$ 63,616	$ 68,410	$ 60,717

Significant Accounting Policies

12 Months Ended

Sep. 30, 2010

Significant Accounting Policies

Significant Accounting Policies

1. Significant Accounting Policies

Organization—AECOM Technology Corporation and its consolidated subsidiaries (the Company) provide professional technical and management support services for commercial and government clients around the world. These services encompass a variety of technical disciplines, including consulting, planning, architectural and engineering design, and program and construction management for a broad range of projects. These services are applied to a number of areas and industries, including transportation infrastructure; research, testing and defense facilities; water, wastewater and other environmental programs; land development; security and communication systems; institutional, mining, industrial and commercial and energy-related facilities. The Company also provides operations and maintenance services to governmental agencies throughout the U.S. and abroad.

Fiscal Year—The Company reports results of operations based on 52 or 53-week periods ending on the Friday nearest September 30. For clarity of presentation, all periods are presented as if the year ended on September 30. Fiscal years 2010, 2009 and 2008 contained 52, 52 and 53 weeks and ended on October 1, October 2, and October 3, respectively. As discussed in Note 5, the Company acquired Earth Tech in July 2008. Due to different fiscal period-ends for the Company and Earth Tech, Earth Tech's results for the fiscal year beginning September 27, 2008 have been combined with the Company's results for the fiscal year beginning October 4, 2008. The use of the different fiscal period for Earth Tech did not have a material impact on the Company's results of operations.

Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The more significant estimates affecting amounts reported in the consolidated financial statements relate to revenues under long-term contracts and self-insurance accruals. Actual results could differ from those estimates.

Principles of Consolidation and Presentation—The consolidated financial statements include the accounts of all majority-owned subsidiaries and material joint ventures in which the Company is the primary beneficiary. All inter-company accounts have been eliminated in consolidation. Also see Note 10 regarding joint ventures.

Revenue Recognition—The Company generally utilizes a cost-to-cost approach in applying the percentage-of-completion method of revenue recognition. Under this approach revenue is earned in proportion to total costs incurred, divided by total costs expected to be incurred. Recognition of revenue and profit is dependent upon a number of factors including, the accuracy of a variety of estimates made at the balance sheet date, engineering progress, materials quantities, the achievement of milestones, penalty provisions, labor productivity and cost estimates made at the balance sheet date. Due to uncertainties inherent in the estimation process, actual completion costs may vary from estimates. If estimated total costs on contracts indicate a loss, the Company recognizes that esti mated loss in the period the estimated loss first becomes known.

In the course of providing its services, the Company routinely subcontracts for services and incurs other direct costs on behalf of its clients. These costs are passed through to clients and, in accordance with industry practice and GAAP, are included in the Company's revenue and cost of revenue. Because subcontractor services and other direct costs can change significantly from project to project and period to period, changes in revenue may not be indicative of business trends. These other direct costs for the years ended September 30, 2010, 2009 and 2008 were $2.3 billion, $2.3 billion and $1.9 billion, respectively.

Cost-Plus Contracts. The Company enters into two major types of cost-plus contracts:

Cost-Plus Fixed Fee. Under cost-plus fixed fee contracts, the Company charges clients for its costs, including both direct and indirect costs, plus a fixed negotiated fee. The total estimated cost plus the fixed negotiated fee represents the total contract value. The Company recognizes revenue based on the actual labor and other direct costs incurred, plus the portion of the fixed fee it has earned to date.

Cost-Plus Fixed Rate. Under the Company's cost-plus fixed rate contracts, the Company charges clients for its direct and indirect costs based upon a negotiated rate. The Company recognizes revenue based on the actual total costs it has expended and the applicable fixed rate.

Certain cost-plus contracts provide for award fees or a penalty based on performance criteria in lieu of a fixed fee or fixed rate. Other contracts include a base fee component plus a performance-based award fee. In addition, the Company may share award fees with subcontractors. The Company records accruals for fee-sharing as fees are earned. The Company generally recognizes revenue to the extent of costs actually incurred plus a proportionate amount of the fee expected to be earned. The Company takes the award fee or penalty on contracts into consideration when estimating revenue and profit rates, and it records revenue related to the award fees when there is sufficient information to assess anticipated contract performance. On contracts that represent higher than normal risk or technical difficulty, the Company may defer all award fees until an award fee letter is received. Once an award fee letter is received, the estimated or accrued fees are adjusted to the actual award amount.

Certain cost-plus contracts provide for incentive fees based on performance against contractual milestones. The amount of the incentive fees varies, depending on whether the Company achieves above, at, or below target results. The Company originally recognizes revenue on these contracts based upon expected results. These estimates are revised when necessary based upon additional information that becomes available as the contract progresses.

Time-and-Materials Contracts.

Time-and-Materials. Under time-and-materials contracts, the Company negotiates hourly billing rates and charges its clients based on the actual time that it expends on a project. In addition, clients reimburse the Company for its actual out-of-pocket costs of materials and other direct incidental expenditures that it incurs in connection with its performance under the contract. Profit margins on time-and-materials contracts fluctuate based on actual labor and overhead costs that it directly charges or allocates to contracts compared to negotiated billing rates. Many of the Company's time-and-materials contracts are subject to maximum contract values and, accordingly, revenue relating to these contracts is recognized as if these contracts were a fixed-price contra ct.

Fixed-Price Contracts.

Firm Fixed-Price. Fixed-price contracting is the predominant contracting method outside of the United States. There are typically two types of fixed-price contracts. The first and more common type, lump-sum, involves performing all of the work under the contract for a specified lump-sum fee. Lump-sum contracts are typically subject to price adjustments if the scope of the project changes or unforeseen conditions arise. The second type, fixed-unit price, involves performing an estimated number of units of work at an agreed price per unit, with the total payment under the contract determined by the actual number of units delivered. The Company recognizes revenue on firm fixed-price contracts using the percentage-of-completion method described above. Prior to comple tion, recognized profit margins on any firm fixed-price contract depend on the accuracy of the Company's estimates and will increase to the extent that its actual costs are below the estimated amounts. Conversely, if the Company's costs exceed these estimates, its profit margins will decrease and the Company may realize a loss on a project. The Company recognizes anticipated losses on contracts in the period in which they become evident.

Service-Related Contracts.

Service-Related. Service-related contracts, including operations and maintenance services and a variety of technical assistance services, are accounted for over the period of performance, in proportion to the costs of performance.

Contract Claims—The Company records contract revenue related to claims only if it is probable that the claim will result in additional contract revenue and if the amount can be reliably estimated. In such cases, the Company records revenue only to the extent that contract costs relating to the claim have been incurred. As of September 30, 2010 and 2009, the Company had no significant net receivables related to contract claims.

Government Contract Matters—The Company's federal government and certain state and local agency contracts are subject to, among other regulations, regulations issued under the Federal Acquisition Regulations (FAR). These regulations can limit the recovery of certain specified indirect costs on contracts and subjects the Company to ongoing multiple audits by government agencies such as the Defense Contract Audit Agency (DCAA). In addition, most of the Company's federal and state and local contracts are subject to termination at the discretion of the client.

Audits by the DCAA and other agencies consist of reviews of the Company's overhead rates, operating systems and cost proposals to ensure that the Company accounted for such costs in accordance with the Cost Accounting Standards of the FAR (CAS). If the DCAA determines the Company has not accounted for such costs consistent with CAS, the DCAA may disallow these costs. There can be no assurance that audits by the DCAA or other governmental agencies will not result in material cost disallowances in the future. See also Note 21.

Cash and Cash Equivalents—The Company's cash equivalents include highly liquid investments which have an initial maturity of three months or less.

Allowance for Doubtful Accounts—The Company records its accounts receivable net of an allowance for doubtful accounts. This allowance for doubtful accounts is estimated based on management's evaluation of the contracts involved and the financial condition of its clients. The factors the Company considers in its contract evaluations include, but are not limited to:

•

Client type—federal or state and local government or commercial client;

•

Historical contract performance;

•

Historical collection and delinquency trends;

•

Client credit worthiness; and

•

General economic conditions.

Fair Value of Financial Instruments—The Company determines the fair values of its financial instruments, including short-term investments, debt instruments and derivative instruments, and pension and post-retirement plan assets based on inputs or assumptions that market participants would use in pricing an asset or a liability. The Company categorizes its instruments using a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or lia bility, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; Level 3 inputs are unobservable inputs based on the Company's assumptions used to measure assets and liabilities at fair value. The classification of a financial asset or liability within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturities of these instruments. The carrying amount of the revolving credit facility approximates fair value because the interest rates are based upon variable reference rates. See also Notes 12 and 13.

The Company's fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date.

Property and Equipment—Property and equipment are recorded at cost and are depreciated over their estimated useful lives using the straight-line method. Expenditures for maintenance and repairs are expensed as incurred. Typically, estimated useful lives range from three to ten years for equipment, furniture and fixtures. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the remaining terms of the underlying lease agreement.

Long-lived Assets—Long-lived assets to be held and used are reviewed for impairment whenever events or circumstances indicate that the assets may be impaired. For assets to be held and used, impairment losses are recognized based upon the excess of the asset's carrying amount over the fair value of the asset. For long-lived assets to be disposed, impairment losses are recognized at the lower of the carrying amount or fair value less cost to sell.

Goodwill and Acquired Intangible Assets—Goodwill represents the excess amounts paid over the fair value of net assets acquired in mergers and acquisitions. In order to determine the amount of goodwill resulting from a merger or acquisition, the Company performs an assessment to determine the value of the acquired company's tangible and identifiable intangible assets and liabilities. In its assessment, the Company determines whether identifiable intangible assets exist, which typically include backlog and customer relationships.

The Company performs an impairment test of its goodwill at least annually for each reporting unit of the Company. A reporting unit is defined as an operating segment or one level below an operating segment. Our impairment tests are performed at the operating segment level as they represent our reporting units.

The impairment test is a two-step process. During the first step, the Company estimates the fair value of the reporting unit and compares that amount to the carrying value of that reporting unit. In the event the fair value of the reporting unit is determined to be less than the carrying value, a second step is required. The second step requires the Company to perform a hypothetical purchase allocation for that reporting unit and to compare the resulting current implied fair value of the goodwill to the current carrying value of the goodwill for that reporting unit. In the event that the current implied fair value of the goodwill is less than the carrying value, an impairment charge is recognized.

During the fourth quarter of fiscal 2010, the Company conducted its annual impairment test. The impairment evaluation process is based on income and market approaches that utilizes discounted cash flows to determine the fair values of reporting units. Material assumptions used in the impairment analysis included the weighted average cost of capital percent and terminal growth rates. As a result of the impairment analysis, the Company determined that goodwill was not impaired for the year ended September 30, 2010.

Pension Plans—The Company has certain defined benefit pension plans. The Company calculates the market-related value of assets, which is used to determine the return-on-assets component of annual pension expense and the cumulative net unrecognized gain or loss subject to amortization. This calculation reflects the Company's anticipated long-term rate of return and amortization of the difference between the actual return (including capital, dividends, and interest) and the expected return over a five-year period. Cumulative net unrecognized gains or losses that exceed 10% of the greater of the projected benefit obligation or the market related value of plan assets are subject to amortization.

Insurance Reserves—The Company maintains insurance for certain insurable business risks. Insurance coverage contains various retention and deductible amounts for which the Company accrues a liability based upon reported claims and an actuarially determined estimated liability for certain claims incurred but not reported. It is the Company's policy not to accrue for any potential legal expense to be incurred in defending the Company's position. The Company believes that its accruals for estimated liabilities associated with professional and other liabilities are sufficient and any excess liability beyond the accrual is not expected to have a material adverse effect on the Company's results of operations or financial position.

Foreign Currency Translation—The Company's functional currency is the U.S. dollar. Results of operations for foreign entities are translated to U.S. dollars using the average exchange rates during the period. Assets and liabilities for foreign entities are translated using the exchange rates in effect as of the date of the balance sheet. Resulting translation adjustments are recorded as a foreign currency translation adjustment into other accumulated comprehensive income/(loss) in stockholders' equity.

The Company uses forward exchange contracts from time to time to mitigate foreign currency risk. The Company limits exposure to foreign currency fluctuations in most of its contracts through provisions that require client payments in currencies corresponding to the currency in which costs are incurred. As a result of this natural hedge, the Company generally does not need to hedge foreign currency cash flows for contract work performed. The functional currency of all significant foreign operations is the respective local currency.

Income Taxes—The Company files a consolidated federal income tax return and combined / consolidated state tax returns and separate company state tax returns. The Company accounts for certain income and expense items differently for financial reporting and income tax purposes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities, applying enacted statutory tax rates in effect for the year in which the differences are expected to reverse. In determining the need for a valuation allowance, management reviews both positive and negative evidence, including current and historical results of operations, future income projections, and potential tax planning strategies. Based upon management's assessment of all available evidence, the Company has concluded that it is more likely than not that the deferred tax assets, net of valuation allowance, will be realized.

Adoption of New Accounting Pronouncements

12 Months Ended

Sep. 30, 2010

Adoption of New Accounting Pronouncements

Adoption of New Accounting Pronouncements

2. Adoption of New Accounting Pronouncements

In December 2007, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 810-10, "Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51" (ASC 810-10). ASC 810-10 requires all entities to report non-controlling interests in subsidiaries as a separate component of equity in the consolidated balance sheet and to reflect net income attributable to non-controlling interests below net income on the consolidated statement of income. The Company adopted ASC 810-10 during the first quarter ended December 31, 2009. Accordingly, prior periods have been restated to reflect these reclassifications.

In January 2010, the FASB issued Accounting Standards Update (ASU) 2010-02, "Consolidation (Topic 810)—Accounting and Reporting for Decreases in Ownership of a Subsidiary—A Scope Clarification" (ASU 2010-02). In addition to expanding the disclosure requirements about the deconsolidation of a subsidiary, ASU 2010-02 clarifies the scope of the decrease in ownership provisions of ASC 810-10 and related guidance. ASU 2010-02 has been applied retrospectively to the first period that ASC 810-10 was adopted which was during the first quarter ended December 31, 2009. The adoption of ASU 2010-02 had no impact on the Company's consolidated financial statements as the Company has had no such decreases in ownership of its subsidiaries. < /p>

In June 2009, the FASB issued "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162." It establishes the FASB ASC as the single source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the United States Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants. Its adoption did not have an impact on the Company's financial statements.

In February 2010, the FASB issued ASU 2010-09 "Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements" (ASU 2010-09). ASU 2010-09 removes the requirement for a SEC registrant to disclose a date, in both issued and revised financial statements, through which that filer had evaluated subsequent events. Accordingly, the Company removed the related disclosure from the Notes to Consolidated Financial Statements. Consistent with past practice, the Company has evaluated subsequent events through the issuance date of our financial statements. The adoption did not have a material impact on the Company's financial statements.

In December 2007, the FASB issued ASC 805-10, "Business Combinations" (ASC 805-10). ASC 805-10 significantly changes the way companies account for business combinations and generally requires more assets acquired and liabilities assumed to be measured at their acquisition-date fair value. Under ASC 805-10, legal fees and other transaction-related costs are expensed as incurred and are no longer included as a cost of acquiring the business. ASC 805-10 also requires, among other things, acquirers to estimate the acquisition-date fair value of any contingent consideration and to recognize any subsequent changes in the fair value of contingent consideration in earnings. In addition, restructuring costs the acquirer expects, but is not obligated to incur, must be recognize d separately from the business acquisition. This pronouncement has been applied by the Company to all acquisitions consummated on or after October 1, 2009. Transaction costs expensed in the year ended September 30, 2010 as a result of the adoption of ASC 805-10 were $9.0 million.

As of September 30, 2007, the Company adopted certain provisions of ASC 715-20, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans" (ASC 715-20). This adoption has a requirement to measure plan assets and benefit obligations as of the date of the employer's fiscal year-end, effective for the Company's fiscal year ended September 30, 2009. In the first quarter of fiscal 2009, the Company changed its measurement date for the defined benefit pension plans to correspond to its fiscal year-end and recorded a charge to beginning retained earnings of $2.9 million, net of tax, for the impact of the cumulative difference in the Company's pension expense between the two measurement dates. In addition, ASC 715-20 amends S FAS No. 132, "Employers' Disclosures about Pensions and Other Postretirement Benefits," to provide guidance on an employer's disclosures about plan assets of a defined benefit pension or other postretirement plan. The additional disclosure requirements include expanded disclosure about an entity's investment policies and strategies, the categories of plan assets, concentrations of credit risk, and fair value measurements of plan assets. This standard was effective for the Company in its fiscal year ended September 30, 2010. The Company amended its disclosures accordingly.

In March 2008, the FASB issued ASC 815-10, "Disclosures about Derivative Instruments and Hedging Activities," which is intended to improve financial reporting of derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand the effects of such instruments and activities on an entity's financial position, financial performance and cash flows. It was effective for the Company beginning on January 1, 2009. The adoption did not have a material impact on the Company's consolidated financial statements.

In April 2009, the FASB issued ASC 825-10-65-1, "Interim Disclosures about Fair Value of Financial Instruments." It requires fair value disclosures in both interim, as well as annual, financial statements in order to provide more timely information about the effects of current market conditions on financial instruments and became effective for the Company in the quarter ended June 30, 2009. The adoption did not have a material impact on the Company's consolidated financial statements.

Effective October 1, 2009, the Company adopted the fair value measurement guidance of ASC 820-10 "Fair Value Measurements and Disclosures" (ASC 820-10) for all nonfinancial assets and liabilities recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis. These assets and liabilities recognized at fair value on a nonrecurring basis include items such as goodwill and long lived assets that are measured at fair value resulting from impairment, if deemed necessary. During the year ended September 30, 2010, the Company did not record any fair market value adjustments to those nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

In January 2010, the FASB issued ASU No. 2010-06 "Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements" (ASU 2010-06). ASU 2010-06 amended certain provisions of ASC 820-10, by requiring additional disclosures for transfers in and out of Level 1 and Level 2 fair value measurements, as well as requiring fair value measurement disclosures for each class of assets and liabilities in addition to disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3. The adoption did not have a material impact on the Company's financial statements or disclosures, as the C ompany did not have any transfers between Level 1 and Level 2 fair value measurements and did not have material classes of assets and liabilities that required additional disclosure. Certain provisions of ASU 2010-06 are effective for the Company for the fiscal year beginning October 1, 2011. These provisions will require the Company to present separately information on all purchases, sales, issuances, and settlements of financial instruments valued using significant unobservable inputs (Level 3) in the reconciliation for fair value measurements. The Company does not believe the adoption of ASU 2010-06 in its fiscal year beginning October 1, 2011 will have a material impact on its financial statements or disclosures.

Business Acquisitions, Goodwill, and Intangible Assets

12 Months Ended

Sep. 30, 2010

Business Acquisitions, Goodwill, and Intangible Assets

Business Acquisitions, Goodwill, and Intangible Assets

5. Business Acquisitions, Goodwill, and Intangible Assets

The Company completed six, three and 14 business acquisitions during the years ended September 30, 2010, 2009 and 2008, respectively. Business acquisitions completed during the years ended September 30, 2010 and 2009 did not meet the quantitative thresholds to require proforma disclosures of operating results both individually and in the aggregate based on the Company's consolidated assets, investments and net income. The Company is in the process of finalizing project related assets and liabilities and final purchase price adjustments related to recent acquisitions including Tishman Construction Corporation and MT Holdings Corporation, the parent of McNeil Technologies.

Business acquisitions during the year ended September 30, 2010 included Tishman Construction Corporation, a New York based provider of construction management services in the United States and the United Arab Emirates, and MT Holdings Corporation, the parent of McNeil Technologies, Inc., a government national security and intelligence services firm based in Virginia.

Acquisitions during the year ended September 30, 2008 included Earth Tech, Boyle Engineering Corporation, and Tecsult, Inc. Earth Tech is a provider of a broad range of technical and consulting services, including architecture, engineering, and design and build services to water/wastewater, environmental, transportation, and facilities clients globally. Boyle Engineering Corporation is a Newport Beach, California based engineering services firm that specializes in the water and wastewater markets. Tecsult, Inc. is an international engineering firm based in Montreal, Canada that serves clients in a variety of markets, including energy, transportation, facilities and environmental.

The aggregate value of all consideration for acquisitions consummated during the years ended September 30, 2010, 2009 and 2008 were $768.0 million, $63.0 million and $632.0 million, respectively. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed, as of the acquisition dates, from acquisitions consummated during the fiscal years presented:

		Fiscal Year Ended

		September 30, 2010			September 30, 2009			September 30, 2008
		(in thousands)
Cash acquired		$	143,300		$	23,245		$	41,169
Other current assets			212,533			36,351			455,931
Goodwill			618,131			46,096			355,527
Intangible assets			63,576			7,503			68,000
Other non-current assets			33,111			1,648			249,873
Current liabilities			(265,394	)		(51,421	)		(346,400	)
Non-current liabilities			(37,302	)		(436	)		(192,100	)

	Net assets acquired	$	767,955		$	62,986		$	632,000

Earth Tech was the significant acquisition occurring during the year ended September 30, 2008. Included in the table above are the following assets acquired and liabilities assumed of Earth Tech, as of the acquisition date:

		Fiscal Year Ended

		September 30, 2008
Cash acquired		$	18,300
Other current assets			380,700
Goodwill			169,414
Intangible assets			35,107
Other non-current assets			133,300
Current liabilities			(315,000	)
Non-current liabilities			(91,421	)

	Net assets acquired	$	330,400

Acquired intangible assets above includes the following:

	Fiscal Year Ended

	September 30, 2010		September 30, 2009		September 30, 2008
	(in thousands)
Backlog	$	16,775	$	2,865	$	37,409
Customer relationships		42,581		4,638		29,671
Trademark / tradename		4,220		—		920

Total intangible assets	$	63,576	$	7,503	$	68,000

Consideration for acquisitions above includes the following:

		Fiscal Year Ended

		September 30, 2010		September 30, 2009		September 30, 2008
		(in thousands)
Cash paid, net of $90.0 million proceeds from sales of businesses in 2008		$	702,655	$	40,072	$	608,151
Promissory notes			—		5,968		—
Equity issued			65,300		16,946		23,849

	Total consideration	$	767,955	$	62,986	$	632,000

All acquisitions are accounted for under the acquisition method of accounting. As such, the purchase consideration of each acquired company was allocated to acquired tangible and intangible assets and liabilities based upon their fair values. The excess of the purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired was recorded as goodwill. The results of operations of each company acquired have been included in the Company's financial statements from the date of acquisition.

The changes in the carrying value of goodwill by reporting segment for the fiscal years ended September 30, 2010, 2009, and 2008 were as follows:

		Fiscal Year 2010

		September 30, 2009		Post-Acquisition Adjustments			Foreign Exchange Impact		Acquired		September 30, 2010
		(in thousands)
Reporting Unit:
Professional Technical Services		$	1,060,093	$	(1,120	)	$	10,456	$	285,530	$	1,354,959
Management Support Services			2,826		—			—		332,601		335,427

	Total	$	1,062,919	$	(1,120	)	$	10,456	$	618,131	$	1,690,386

		Fiscal Year 2009

		September 30, 2008		Post-Acquisition Adjustments		Foreign Exchange Impact			Acquired		September 30, 2009
		(in thousands)
Reporting Unit:
Professional Technical Services		$	946,263	$	68,895	$	(1,161	)	$	46,096	$	1,060,093
Management Support Services			2,826		—		—			—		2,826

	Total	$	949,089	$	68,895	$	(1,161	)	$	46,096	$	1,062,919

		Fiscal Year 2008

		September 30, 2007		Post-Acquisition Adjustments			Foreign Exchange Impact			Acquired		September 30, 2008
		(in thousands)
Reporting Unit:
Professional Technical Services		$	583,807	$	24,876		$	(17,947	)	$	355,527	$	946,263
Management Support Services			8,426		(5,600	)		—			—		2,826

	Total	$	592,233	$	19,276		$	(17,947	)	$	355,527	$	949,089

The gross amounts and accumulated amortization of the Company's acquired identifiable intangible assets with finite useful lives as of September 30, 2010 and 2009, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows:

		September 30, 2010							September 30, 2009

		Gross Amount		Accumulated Amortization			Intangible Assets, Net		Gross Amount		Accumulated Amortization			Intangible Assets, Net		Amortization Period (years)
		(in thousands)
Backlog		$	80,672	$	(65,444	)	$	15,228	$	63,137	$	(55,021	)	$	8,116	1 - 5
Customer relationships			114,009		(24,601	)		89,408		69,999		(16,136	)		53,863	10
Trademark / tradename			4,220		(211	)		4,009		—		—			—	5

	Total	$	198,901	$	(90,256	)	$	108,645	$	133,136	$	(71,157	)	$	61,979

At the time of acquisition, the Company preliminarily estimates the amount of the identifiable intangible assets acquired based upon historical valuations of similar acquisitions and the facts and circumstances available at the time. The Company determines the final value of the identifiable intangible assets as soon as information is available, but not more than 12 months from the date of acquisition. The Company is in the process of completing the final valuation of intangible assets for its recent business acquisitions.

The following table presents estimated amortization expense of existing intangible assets for the succeeding years:

Fiscal Year		(in thousands)

2011		$	19,225
2012			14,873
2013			14,788
2014			14,642
2015			13,248
Thereafter			31,869

	Total	$	108,645

Joint Ventures and Variable Interest Entities

12 Months Ended

Sep. 30, 2010

Joint Ventures and Variable Interest Entities

Joint Ventures and Variable Interest Entities

10. Joint Ventures and Variable Interest Entities

Investments in Unconsolidated Joint Ventures

The Company's unconsolidated joint ventures provide architecture, engineering, program management, construction management and operations and maintenance services. Joint ventures, the combination of two or more partners, are generally formed for a specific project. Management of the joint venture is typically controlled by a joint venture executive committee, comprised of a representative from each joint venture partner with equal voting rights, irrespective of the ownership percentage. The ownership percentage is typically representative of the work to be performed or the amount of risk assumed by each joint venture partner. The executive committee provides management oversight and assigns work efforts to the joint venture partners.

Some of the Company's unconsolidated joint ventures have no employees and minimal operating expenses. For these joint ventures, the Company's own employees perform work for the joint venture, which is then billed to a third-party customer by the joint venture. These joint ventures function as pass through entities to bill the third-party customer. The Company includes the services performed for these joint ventures, and the costs associated with these services, in the Company's results of operations. In certain joint ventures where a fee is added by the joint venture to client billings, the Company's portion of that fee is recorded in equity in earnings of joint ventures.

The Company also has unconsolidated joint ventures that have their own employees and operating expenses and to which the Company generally makes a capital contribution. These joint ventures generally provide operations and maintenance services for governmental facilities. The Company accounts for these joint ventures using the equity method.

Summary of unaudited financial information of the unconsolidated joint ventures is as follows:

			Fiscal Year Ended

			September 30, 2010			September 30, 2009			September 30, 2008
			(in thousands)
Financial position:
	Current assets		$	393,733		$	215,108		$	233,422
	Current liabilities			(319,791	)		(145,135	)		(146,079	)

		Working capital		73,942			69,973			87,343
	Non-current assets			6,071			6,475			5,384
	Non-current liabilities			(4,531	)		(2,722	)		(1,865	)

		Joint ventures' equity	$	75,482		$	73,726		$	90,862

			Fiscal Year Ended

			September 30, 2010		September 30, 2009		September 30, 2008
			(in thousands)
The Company's investment in joint ventures			$	53,235	$	34,505	$	46,432
Joint ventures':
	Total revenues		$	1,865,563	$	1,488,952	$	1,162,517
	Cost of revenues			1,692,865		1,433,087		1,107,360
The Company's equity in earnings of joint ventures
	Pass through joint ventures		$	2,478	$	2,477	$	1,935
	Other joint ventures			18,509		20,080		20,256

		Total	$	20,987	$	22,557	$	22,191

Consolidated Entities

At September 30, 2010, the total assets and liabilities of variable interest entities where the Company was the primary beneficiary were $259.6 million and $80.2 million, respectively, as compared to total assets of $250.9 million and total liabilities of $130.0 million at September 30, 2009.

Pension Plans

12 Months Ended

Sep. 30, 2010

Pension Plans

Pension Plans

11. Pension Plans

In the U.S., the Company sponsors a Defined Benefit Pension Plan (the Pension Plan) which covers substantially all permanent employees hired as of March 1, 1998, subject to eligibility and vesting requirements, and required contributions from participating employees through March 31, 1998. Benefits under this plan generally are based on the employee's years of creditable service and compensation. Effective April 1, 2004, the Company set a maximum on the amount of compensation used to determine pension benefits based on the highest calendar year of compensation earned in the 10 completed calendar years from 1994 through 2003, or the relevant IRS annual compensation limit, $200,000, whichever is lower. Outside the U.S., the Company sponsors various pension plans, which are appropriate to the country in which the Company operates , some of which are government mandated.

In the first quarter of fiscal 2009, the Company changed its measurement date for the defined benefit pension plans to correspond to its fiscal year-end and recorded a charge to beginning retained earnings of $2.9 million, net of tax, for the impact of the cumulative difference in the Company's pension expense between the two measurement dates. During the quarter ended December 31, 2009, the Company adopted an amendment to freeze pension plan benefit accruals for certain U.S. employee plans resulting in a curtailment gain of $1.9 million.

The following tables provide reconciliations of the changes in the U.S. and international plans' benefit obligations, reconciliations of the changes in the fair value of assets for the years ended September 30, and reconciliations of the funded status as of September 30 of each year.

		Fiscal Year Ended

		September 30, 2010						September 30, 2009						September 30, 2008
		U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
		(in thousands)
Change in benefit obligation:
	Benefit obligation at beginning of year	$	148,492		$	394,418		$	129,232		$	430,075		$	125,804		$	357,100
	Adjustment for FAS 158 measurement date provision		N/A			N/A			958			3,177			N/A			N/A
	Service cost		—			4,537			1,848			4,755			2,252			4,278
	Participant contributions		532			2,251			868			2,504			883			2,776
	Interest cost		8,043			21,355			8,585			22,024			7,644			19,149
	Benefits paid		(9,785	)		(15,177	)		(8,519	)		(13,563	)		(6,905	)		(19,522	)
	Actuarial (gain) loss		25,520			37,159			18,978			(23,281	)		(7,527	)		22,388
	Curtailment (gain) loss		(2,918	)		(2,582	)		—			—			—			—
	Plan settlements		—			—			(3,458	)		—			(2,954	)		—
	Net transfer in/(out)/acquisitions		—			(148	)		—			7,549			10,035			88,273
	Foreign currency translation loss (gain)		—			(51	)		—			(38,822	)		—			(44,367	)

	Benefit obligation at end of year	$	169,884		$	441,762		$	148,492		$	394,418		$	129,232		$	430,075

		Fiscal Year Ended

		September 30, 2010						September 30, 2009						September 30, 2008
		U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
		(in thousands)
Change in plan assets
	Fair value of plan assets at beginning of year	$	80,286		$	330,117		$	94,460		$	335,419		$	98,914		$	315,316
	Adjustment for FAS 158 measurement date provision		N/A			N/A			(1,585	)		(3,703	)		N/A			N/A
	Actual return on plan assets		7,774			28,756			(11,055	)		(3,207	)		(8,949	)		(7,803	)
	Employer contributions		5,820			16,842			9,575			35,806			3,791			15,584
	Participant contributions		532			2,251			868			2,504			883			2,776
	Benefits paid		(9,785	)		(15,177	)		(8,519	)		(13,563	)		(6,905	)		(19,522	)
	Plan settlements		—			—			(3,458	)		—			(2,954	)		—
	Net transfer in/(out)/acquisitions		—			(164	)		—			5,246			9,680			64,436
	Foreign currency translation (loss) gain		—			164			—			(28,385	)		—			(35,368	)

	Fair value of plan assets at end of year	$	84,627		$	362,789		$	80,286		$	330,117		$	94,460		$	335,419

	Fiscal Year Ended

	September 30, 2010						September 30, 2009						September 30, 2008
	U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
	(in thousands)
Reconciliation of funded status:
Funded status at end of year	$	(85,257	)	$	(78,973	)	$	(68,206	)	$	(64,301	)	$	(34,772	)	$	(94,656	)
Contribution made after measurement date		N/A			N/A			N/A			N/A			204			12,908

Net amount recognized at end of year	$	(85,257	)	$	(78,973	)	$	(68,206	)	$	(64,301	)	$	(34,568	)	$	(81,748	)

The following table sets forth the amounts recognized in the consolidated balance sheets as of September 30, 2010, 2009 and 2008:

		Fiscal Year Ended

		September 30, 2010						September 30, 2009						September 30, 2008
		U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
		(in thousands)
Amounts recognized in the consolidated balance sheets:
	Other non-current assets	$	—		$	—		$	—		$	60		$	—		$	—
	Accrued expenses and other current liabilities		(1,535	)		—			(1,284	)		—			(1,588	)		(81,748	)
	Other long-term liabilities		(83,722	)		(78,973	)		(66,922	)		(64,361	)		(32,980	)		—

	Net amount recognized in the balance sheet	$	(85,257	)	$	(78,973	)	$	(68,206	)	$	(64,301	)	$	(34,568	)	$	(81,748	)

The following table details the reconciliation of amounts in the consolidated statements of stockholders' equity for the fiscal years ended September 30, 2010, 2009 and 2008:

		Fiscal Year Ended

		September 30, 2010						September 30, 2009						September 30, 2008
		U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
		(in thousands)
Reconciliation of amounts in consolidated statements of stockholders' equity:
	Prior service credit (cost)	$	—		$	2,644		$	1,933		$	2,987		$	2,979		$	3,766
	Net gain (loss)		(92,991	)		(114,395	)		(71,544	)		(86,318	)		(35,579	)		(89,705	)

	Total recognized in accumulated other comprehensive income (loss)	$	(92,991	)	$	(111,751	)	$	(69,611	)	$	(83,331	)	$	(32,600	)	$	(85,939	)

The following table details the components of net periodic benefit cost for the plans in fiscal 2010, 2009 and 2008:

		Fiscal Year Ended

		September 30, 2010						September 30, 2009						September 30, 2008
		U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
		(in thousands)
Components of net periodic benefit cost:
	Service costs	$	—		$	4,537		$	1,848		$	4,755		$	2,252		$	4,278
	Interest cost on projected benefit obligation		8,043			21,355			8,585			22,024			7,644			19,149
	Expected return on plan assets		(7,983	)		(23,699	)		(7,837	)		(22,799	)		(7,112	)		(20,737	)
	Amortization of prior service costs		—			(316	)		(837	)		(312	)		(1,158	)		(399	)
	Recognized actuarial loss		1,364			2,356			2,433			3,217			3,334			3,128
	Curtailment/settlement (gain) loss		(1,933	)		—			763			—			286			2,566

	Net periodic benefit cost	$	(509	)	$	4,233		$	4,955		$	6,885		$	5,246		$	7,985

The amount, net of applicable deferred income taxes, included in other comprehensive income arising from a change in net prior service cost and net gain/loss was $17.4 million and $14.7 million in the year ended September 30, 2010 and 2009, respectively.

Amounts included in accumulated other comprehensive loss as of September 30, 2010 that are expected to be recognized as components of net periodic benefit cost during fiscal 2011 are (in thousands):

	U.S.		Int'l

Amortization of prior service cost (credit)	$	—	$	(320	)
Amortization of net actuarial losses		2,590		3,142

Total	$	2,590	$	2,822

The table below provides additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets.

	Fiscal Year Ended

	September 30, 2010				September 30, 2009				September 30, 2008
	U.S.		Int'l		U.S.		Int'l		U.S.		Int'l
	(in thousands)
Projected benefit obligation	$	169,884	$	441,762	$	148,492	$	394,418	$	129,232	$	430,075
Accumulated benefit obligation		169,884		400,689		145,574		358,306		126,521		395,686
Fair value of plan assets		84,627		362,789		80,286		330,117		94,460		335,419

Funding requirements for each plan are determined based on the local laws of the country where such plan resides. In certain countries, the funding requirements are mandatory while in other countries, they are discretionary. We currently expect to contribute $16.7 million to our international plans in fiscal 2011. We do not have a required minimum contribution for our U.S. plans; however, we may make additional discretionary contributions. We currently expect to contribute $17.5 million to our U.S. plans in fiscal 2011.

The table below provides the expected future benefit payments, in thousands:

Year Ending September 30,	U.S.		Int'l

2011	$	8,750	$	13,041
2012		9,745		16,281
2013		10,419		16,990
2014		10,719		17,534
2015		10,777		18,963
2016—2020		59,030		119,550

The underlying assumptions for the pension plans are as follows:

		Fiscal Year Ended

		September 30, 2010						September 30, 2009						September 30, 2008
		U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
Weighted-average assumptions to determine benefit obligation:
	Discount rate		5.25	%		5.05	%		5.70	%		5.56	%		6.91	%		5.80-5.90	%
	Salary increase rate		N/A			4.37	%		4.00	%		3.92	%		4.00	%		4.25	%
Weighted-average assumptions to determine net periodic benefit cost:
	Discount rate		5.70	%		5.55	%		6.91	%		5.80	%		6.25	%		5.25-5.50	%
	Salary increase rate		4.00	%		3.91	%		4.00	%		4.63	%		4.00	%		4.25	%
	Expected long-term rate of return on plan assets		8.00	%		6.47	%		8.00	%		7.20	%		8.00	%		6.95-7.00	%

Pension costs are determined using the assumptions as of the beginning of the plan year, October 1. The funded status is determined using the assumptions as of the end of the plan year.

The following table summarizes the Company's target allocation for 2010 and pension plan asset allocation, both U.S. and international, as of September 30, 2010 and 2009:

							Percentage of Plan Assets as of September 30,

	Target Allocations						2010						2009
Asset Category	U.S.			Int'l			U.S.			Int'l			U.S.			Int'l
Equities		55	%		43	%		53	%		42	%		62	%		47	%
Debt		20			38			25			38			22			43
Cash		—			1			2			2			2			2
Property and other		25			18			20			18			14			8

Total		100	%		100	%		100	%		100	%		100	%		100	%

The Company's policy is to minimize the risk of large losses through diversification in a portfolio of stocks, bonds, and cash equivalents, as appropriate, which may reflect varying rates of return. The percentage of assets allocated to cash is to assure liquidity to meet benefit disbursements and general operating expenses.

To develop the expected long-term rate of return on assets assumption, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio and the diversification of the portfolio. This resulted in the selection of an 8.0% and 6.5% weighted-average long-term rate of return on assets assumption for the fiscal year ended September 30, 2010 for U.S. and non-U.S. plans, respectively.

As of September 30, 2010, the fair values of the Company's post-retirement benefit plan assets by major asset categories are as follows:

				Fair Value Measurement as of September 30, 2010

		Total Carrying Value as of September 30, 2010		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
		(in thousands)
Cash and cash equivalents		$	5,819	$	5,819	$	—	$	—
Investment funds
	Diversified funds		23,751		—		23,751		—
	Equity funds		182,911		—		182,911		—
	Fixed income funds		155,095		—		155,095		—
	Hedge funds		29,477		—		24,387		5,090
Assets held by insurance company			35,273		—		35,273		—
Real estate			10,466		—		10,466		—
Other			4,624		—		157		4,467

	Total	$	447,416	$	5,819	$	432,040	$	9,557

Changes in the fair value of the Company's post-retirement plan Level 3 assets are as follows:

		September 30, 2009 Beginning balance		Actual return on plan assets, relating to assets still held at reporting date			Actual return on plan assets, relating to assets sold during the period		Purchases, sales and settlements		Transfer into / (out of) Level 3		Change due to exchange rate changes		September 30, 2010 Ending balance

		(in thousands)
Investment funds
	Hedge funds	$	5,392	$	(302	)	$	—	$	—	$	—	$	—	$	5,090
Other			4,359		108			—		—		—		—		4,467

	Total	$	9,751	$	(194	)	$	—	$	—	$	—	$	—	$	9,557

Cash equivalents are mostly comprised of short-term money-market instruments and are valued at cost, which approximates fair value.

For equity investment funds not traded on an active exchange, or if the closing price is not available, the trustee obtains indicative quotes from a pricing vendor, broker, or investment manager. These funds are categorized as Level 2 if the custodian obtains corroborated quotes from a pricing vendor or categorized as Level 3 if the custodian obtains uncorroborated quotes from a broker or investment manager.

Fixed income investment funds categorized as Level 2 are valued by the trustee using pricing models that use verifiable observable market data (e.g., interest rates and yield curves observable at commonly quoted intervals), bids provided by brokers or dealers, or quoted prices of securities with similar characteristics.

Hedge funds and certain other securities categorized as Level 3 are valued based on valuation models that include significant unobservable inputs and cannot be corroborated using verifiable observable market data. Hedge funds are valued by independent administrators. Depending on the nature of the assets, the general partners or independent administrators use both the income and market approaches in their models. The market approach consists of analyzing market transactions for comparable assets while the income approach uses earnings or the net present value of estimated future cash flows adjusted for liquidity and other risk factors. As of September 30, 2010, there were no material changes to the valuation techniques.

Debt

12 Months Ended

Sep. 30, 2010

Debt

Debt

12. Debt

Debt consisted of the following:

		September 30, 2010			September 30, 2009

		(in thousands)
Unsecured term credit agreements		$	609,095		$	21,196
Unsecured senior notes			250,529			—
Unsecured revolving credit facility			26,479			100,000
Secured notes			25,865			26,633
Other debt			19,159			23,380

	Total debt		931,127			171,209
Less: Current portion of debt and short-term borrowings			(16,441	)		(29,107	)

	Long-term debt, less current portion	$	914,686		$	142,102

The following table presents, in thousands, scheduled maturities of our debt:

Year Ending September 30,

2011		$	16,441
2012			67,095
2013			121,987
2014			451,300
2015			1,393
Thereafter			272,911

	Total	$	931,127

Unsecured Term Credit Agreements

In September 2010, the Company entered into an unsecured term credit agreement with a syndicate of banks to support its working capital and acquisition needs. Pursuant to the credit agreement, the Company borrowed $600 million in term loans and may borrow up to an additional $100 million in term loans upon request by the Company subject to certain conditions. The loans under the credit agreement bear interest, at the Company's option, at either the base rate (as defined in the credit agreement) plus an applicable margin or the Eurodollar rate (as defined in the credit agreement) plus an applicable margin. The applicable margin for base rate loans is a range of 1.0% to 2.25% and the applicable margin for Eurodollar rate loans is a range of 2.0% to 3.25%, both based on the debt-to-earnings leverage ratio of the Company at the end of each fiscal quarter. The initial interest rate of the $600 million term loans borrowed in September 2010 is the three-month Eurodollar rate plus 2.5%, or a total of 2.79%. Payments of the initial principal amount outstanding under the credit agreement are required on a quarterly basis beginning in September 2012. Any remaining principal of the loans under the credit agreement is due no later than September 2014. The credit agreement contains customary representations and warranties, affirmative and negative covenants, and events of default. At September 30, 2010, the Company was in compliance with applicable covenants.

In September 2006, through certain wholly-owned subsidiaries, the Company entered into an unsecured term credit agreement with a syndicate of banks to facilitate dividend repatriations under Section 965 of the American Jobs Creation Act, which provided for a limited time opportunity to repatriate foreign earnings to the U.S. at a 5.25% tax rate. The agreement provided for a $65.0 million, five-year term loan among four subsidiary borrowers and one subsidiary guarantor. In order to obtain favorable pricing, the Company also provided a parent company guarantee. The terms and conditions of the term credit agreement are similar to those contained in the Company's revolving credit facility. The amount outstanding on this credit agreement was $9.1 million and $21.2 million at September 30, 2010 and 2009, respective ly. At September 30, 2010, the Company was in compliance with applicable covenants.

Unsecured Senior Notes

In June 2010, the Company entered into a Note Purchase Agreement (Purchase Agreement) providing for a private placement of $300.0 million in aggregate principal amount of senior unsecured notes (Notes). In July 2010 (Closing Date), the Notes were sold to institutional accredited investors pursuant to an exemption from registration under the Securities Act of 1933, as amended. The Notes consisted of $175.0 million of 5.43% Senior Notes, Series A, due July 2020 and $125.0 million of 1.00% Senior Discount Notes, Series B, due July 2022 for net proceeds of $249.8 million. Interest on the Notes will accrue from the Closing Date, and the Company will pay interest quarterly beginning October 2010, until the Notes mature. The outstanding accreted balance of Series B Notes was $75.5 million at September 30, 2010. The Company's obligations under the Notes are guaranteed by certain subsidiaries of the Company pursuant to one or more subsidiary guarantees. The credit agreement contains customary representations and warranties, affirmative and negative covenants, and events of default. At September 30, 2010, the Company was in compliance with these covenants.

Unsecured Revolving Credit Facility

The Company has an unsecured revolving credit facility with a syndicate of banks to support its working capital and acquisition needs. The borrowing capacity under the unsecured revolving credit facility is $600 million, and pursuant to the terms of the associated credit agreement, has an expiration date of August 2012. The Company may also, at its option, request an increase in the commitments under the facility up to a total of $750 million, subject to lender approval. The credit agreement contains customary representations and warranties, affirmative and negative covenants and events of default and includes a sub-limit for financial and commercial standby letters of credit. The Company may borrow, at its option, at either (a) a base rate (the greater of the federal funds rate plus 0.50% or the bank's reference rate), or (b) an offshore, or LIBOR, rate plus a margin which ranges from 0.50% to 1.38%. In addition to these borrowing rates, there is a commitment fee, which ranges from 0.10% to 0.25% on any unused commitment. At September 30, 2010 and 2009, $26.5 million and $100.0 million was outstanding under the credit facility, respectively. At September 30, 2010 and 2009, outstanding standby letters of credit totaled $31.5 million and $29.9 million, respectively, under the credit facility. At September 30, 2010, the Company had $542.0 million available for borrowing under the credit facility. The Company's debt agreements contain certain negative covenants relating to the Company's net worth and leverage, based on outstanding borrowings (including financial letters of credit) and earnings before interest, taxes, depreciation, and amortization. The Company could have drawn upon the remaining $542.0 million available under the credit facilit y. At September 30, 2010, the Company was in compliance with these covenants.

Interest Rate Swaps

The Company had interest rate swap agreements with financial institutions to fix the variable interest rates on portions of the debt outstanding under the Company's revolving credit facility during the fiscal years ended September 30, 2010 and 2009. The remainder of these interest rate swap agreements expired in August 2010. The Company applied cash flow hedge accounting for the interest rate swap agreements in accordance with ASC 815-20, "Accounting for Derivative Instruments and Hedging Activities." Accordingly, the derivatives were recorded at fair value as assets or liabilities and the effective portion of changes in the fair value of the derivative, as measured quarterly, was reported in other comprehensive income. As these derivatives expired in August 2010, no remaining balance exists in other comprehensive income as of September 30, 2010.

The Company's average effective interest rate on borrowings under the revolving credit facility, including the effects of the swaps, during the year ended September 30, 2010 and 2009 was 2.4% and 3.1%, respectively.

Secured Notes

Secured notes are notes payable to a bank, collateralized by real properties, which were assumed in connection with a business acquired during the year ended September 30, 2008. These notes payable bear interest at 6.04% per annum and mature in December 2028.

Other Debt

Other debt consists primarily of bank overdrafts and obligations under capital leases. In addition to the unsecured revolving credit facility discussed above, at September 30, 2010, the Company had $218.5 million of unsecured credit facilities primarily used to cover periodic overdrafts and letters of credit, of which, $138.7 million was utilized for outstanding letters of credit.

Fair Value Measurements

12 Months Ended

Sep. 30, 2010

Fair Value Measurements

Fair Value Measurements

13. Fair Value Measurements

In September 2006, the FASB issued ASC 820-10, which defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosures about fair value measurements. ASC 820-10 was effective for the Company on October 1, 2008 for all financial assets and liabilities and for nonfinancial assets and liabilities recognized or disclosed at fair value in its consolidated financial statements on a recurring basis (at least annually).

Effective October 1, 2009, the Company adopted the fair value measurement guidance for all nonfinancial assets and liabilities recognized or disclosed at fair value in the financial statements on a nonrecurring basis. These assets and liabilities include items such as goodwill and long lived assets that are measured at fair value resulting from impairment, if deemed necessary. During the year ended September 30, 2010, the Company did not record any fair market value adjustments to those financial and nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.

The following tables summarize the Company's non-pension financial assets and liabilities measured at fair value on a recurring basis (at least annually) as of September 30, 2010 and 2009 (in millions):

		September 30, 2010		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

U.S. government security(3)		$	9.2	$	9.2	$	—	$	—
Corporate notes and bonds(3)			2.3		2.3		—		—
Deferred compensation plan assets(1)			—		—		—		—

	Total assets	$	11.5	$	11.5	$	—	$	—

Deferred compensation plan liabilities(1)		$	88.8	$	—	$	88.8	$	—

	Total liabilities	$	88.8	$	—	$	88.8	$	—

		September 30, 2009		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Deferred compensation plan assets(1)		$	0.6	$	0.6	$	—	$	—

	Total assets	$	0.6	$	0.6	$	—	$	—

Deferred compensation plan liabilities(1)		$	92.8	$	—	$	92.8	$	—
Derivative liabilities(2)			1.9		—		1.9		—

	Total liabilities	$	94.7	$	—	$	94.7	$	—


(1): The Company maintains a participant-directed, non-qualified deferred compensation plan structured as a rabbi trust (a trust established to provide a source of funds for the plan on a tax-deferred basis) for eligible highly compensated employees. As of September 30, 2009, the rabbi trust held $0.6 million (1% of its investment assets) in marketable securities. Such marketable securities are valued using quoted market prices. The remaining assets, not reflected in this table, of $67.2 million and $53.7 million for the years ended September 30, 2010 and 2009, respectively, are life insurance contracts valued at cash surrender value and not subject to this disclosure. The related deferred compensation liability represents the fair value of the participant deferrals, which are held in insurance funds that are not publicly traded. These investments are valued at the net asset value per share provided by the Company's administrator multiplied by the number of shares held by the participants. For additional information about the Company's deferred compensation plan, refer to Note 18 to the Consolidated Financial Statements.
(2): For additional information about the Company's fair value measurements of these interest rate swap agreements, refer to Notes 1 and 12.
(3): Corporate bonds and US government bonds are valued using quoted market prices.

Stock Plans

12 Months Ended

Sep. 30, 2010

Stock Plans

Stock Plans

18. Stock Plans

Defined Contribution Plans—Substantially all permanent employees are eligible to participate in defined contribution plans provided by the Company. Under these plans, participants may make contributions into a variety of funds, including a fund that is fully invested in Company stock. Employees are not required to allocate any funds to Company stock, which allows employees to limit their exposure to market changes in the Company's stock price. Employees may generally reallocate their account balances on a daily basis. The only limit on the frequency of reallocations applies to changes involving Company stock investments by employees classified as insiders or restricted personnel under the Company's insider trading policy.

Deferred Compensation Plan—The Company sponsors the DCP, a stock purchase plan that provides an opportunity for eligible employees and non-employee directors to continue to invest in the Company when the Company's qualified plans are no longer available to them due to limitations contained in the U.S. Internal Revenue Code. Under the DCP, participants are permitted to defer compensation, on a pre-tax basis, for investment in common stock units. The Company funded a rabbi trust for certain diversified DCP balances in connection with the initial public offering in May 2007. The Company elected to terminate its U.S. deferred compensation plan effective in December 2009. As a result of the termination, 6.3 million outstanding restricted stock units and the Company's de ferred compensation liability of $88.8 million as of September 30, 2010 are expected to be settled in December 2010. Accordingly, this liability was reclassified from other long-term liabilities to accrued expenses and other current liabilities in December 2009. Additionally, investments held in a rabbi trust to fund the deferred compensation liability were reclassified from other non-current assets to other current assets in December 2009. These investments totaled $67.2 million as of September 2010. The outstanding stock units can only be settled in common stock of the Company and, as such, remain classified in AECOM's stockholder equity as of September 30, 2010.

Compensation expense relating to employer contributions under defined contribution plans, including the DCP, for fiscal years ended September 30, 2010, 2009 and 2008, was $15.8 million, $16.1 million and $14.3 million, respectively. Issuances and repurchases of AECOM common stock related to employee participants' contributions to and withdrawals from these defined contribution plans are included as issuances and repurchases of stock in the accompanying Consolidated Statements of Stockholders' Equity and of Cash Flows.

Stock Incentive Plans—The Company has stock incentive plans under which key employees can purchase up to 19,400,000 shares of Common Stock under stock options or restricted stock awards while non-employee directors can purchase up to 500,000 shares of Common Stock under stock options. Stock options may be granted to employees and non-employee directors with an exercise price not less than the fair market value of the stock on the date of grant. Unexercised options expire seven years after date of grant. During the years ended September 30, 2010, 2009 and 2008, compensation expense recognized relating to stock options as a result of the fair value method was $4.1 million, $4.4 million and $2.6 million, respectively. Unrecognized compensati on expense relating to stock options outstanding as of September 30, 2010 was $4.7 million to be recognized on a straight-line basis over the awards' respective vesting periods which are generally three years.

The fair value of the Company's stock options were determined using the following weighted average assumptions:

	Fiscal Year Ended

	September 30, 2010			September 30, 2009			September 30, 2008
Dividend yield		0.0	%		0.0	%		0.0	%
Expected volatility		39.9	%		37.6	%		33.0	%
Risk-free interest rate		1.6	%		1.8	%		3.5	%
Term (in years)		4.5			4.5			4.5

The weighted average grant-date fair value of stock options granted during the years ended September 30, 2010, 2009 and 2008 was $8.77, $8.04 and $8.91, respectively.

During the three years in the period ended September 30, 2010, option activity was as follows:

			Weighted Average Exercise Price

Balance, September 30, 2007	7,727,588		$	9.27
Granted	517,100			27.65
Exercised	(2,851,150	)		7.70
Cancelled	(84,793	)		17.51

Balance, September 30, 2008	5,308,745			11.78
Granted	885,464			23.68
Exercised	(2,330,587	)		8.58
Cancelled	(57,622	)		22.17

Balance, September 30, 2009	3,806,000			16.36
Granted	375,429			24.93
Exercised	(992,925	)		10.55
Cancelled	(67,620	)		22.96

Balance, September 30, 2010	3,120,884		$	19.09

Exercisable as of September 30, 2008	4,560,286		$	10.10

Exercisable as of September 30, 2009	2,508,973		$	12.78

Exercisable as of September 30, 2010	2,130,165		$	16.44

The following table summarizes information concerning outstanding and exercisable options as of September 30, 2010:

	Options Outstanding								Options Exercisable

	Number Outstanding as of September 30, 2010		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Aggregate Intrinsic Value (in millions)		Number Exercisable as of September 30, 2010		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price
Range of Exercise Prices
$9.76 - $10.34		179,300		0.23	$	9.93	$	2.58		179,300		0.23	$	9.93
10.39 - 11.49		423,000		1.19		10.63		5.78		423,000		1.19		10.63
12.41 - 15.41		847,727		2.72		13.55		9.11		847,727		2.72		13.55
21.01 - 25.52		1,219,381		5.38		23.94		0.54		378,813		4.99		23.43
26.47 - 36.67		451,476		4.43		27.97		—		301,325		4.24		27.83

9.76 - 36.67		3,120,884		3.66	$	19.09	$	18.01		2,130,165		2.83	$	16.44

The remaining contractual life of options outstanding at September 30, 2010, range from 0 to 7 years and have a weighted average remaining contractual life of 3.66 years. The aggregate intrinsic value of stock options exercised during the years ended September 30, 2010, 2009 and 2008 was $17.9 million, $46.1 million and $65.5 million, respectively.

The Company grants stock units under the Performance Earnings Program (PEP), whereby units are earned and issued dependent upon meeting established cumulative performance objectives over a three-year period. The Company recognized compensation expense relating to the PEP of $22.3 million, $19.3 million and $19.2 million during the years ended September 30, 2010, 2009 and 2008, respectively. Additionally, the Company issues restricted stock units in connection with acquisitions which vest immediately or which are earned based on service conditions, resulting in compensation expenses of $7.5 million, $1.5 million and $0.0 million during the years ended September 30, 2010, 2009 and 2008, respectively. Unrecognized compensation expense related to PEP units and restricted stock units out standing as of September 30, 2010 was $27.8 million and $16.0 million, respectively, to be recognized on a straight-line basis over the awards' respective vesting periods which are generally three years.

Cash flow attributable to tax benefits resulting from tax deductions in excess of compensation cost recognized for those stock options (excess tax benefits) is classified as financing cash flows. Excess tax benefits of $17.3 million, $15.0 million and $20.6 million for the years ended September 30, 2010, 2009 and 2008, respectively, have been classified as financing cash inflows in the Consolidated Statements of Cash Flows.

Income Taxes

12 Months Ended

Sep. 30, 2010

Income Taxes

Income Taxes

19. Income Taxes

Income tax expense on continuing operations is comprised of:

			Fiscal Year Ended

			September 30, 2010		September 30, 2009			September 30, 2008
			(in thousands)
Current:
	Federal		$	15,871	$	25,813		$	57,443
	State			7,243		5,306			13,800
	Foreign			46,742		49,093			39,720

		Total current income tax expense		69,856		80,212			110,963

Deferred:
	Federal			15,431		4,233			(28,660	)
	State			474		(1,439	)		(7,188	)
	Foreign			5,935		(6,004	)		1,378

		Total deferred income tax expense (benefit)		21,840		(3,210	)		(34,470	)

		Total income tax expense	$	91,696	$	77,002		$	76,493

The major elements contributing to the difference between the U.S. federal statutory rate of 35.0% and the effective tax rate are as follows:

		Fiscal Year Ended

		September 30, 2010						September 30, 2009						September 30, 2008
		Amount			%			Amount			%			Amount			%
		(in thousands)
Tax at federal statutory rate		$	119,391			35.0	%	$	97,261			35.0	%	$	82,741			35.0	%
State income tax, net of federal benefit			7,276			2.1			5,257			1.9			6,027			2.6
U.S. income tax credits			(21,082	)		(6.2	)		(19,813	)		(7.1	)		(15,779	)		(6.7	)
Foreign tax rate differential			(433	)		(0.1	)		5,231			1.9			(2,778	)		(1.2	)
Foreign Research and Experimentation credits			(6,432	)		(1.9	)		(6,662	)		(2.4	)		(6,857	)		(2.9	)
Change in uncertain tax positions			(3,898	)		(1.1	)		(5,926	)		(2.2	)		20,180			8.6
Valuation allowance			(1,316	)		(0.4	)		5,113			1.8			794			0.3
Other items, net			(1,810	)		(0.5	)		(3,459	)		(1.2	)		(7,835	)		(3.3	)

	Total income tax expense	$	91,696			26.9	%	$	77,002			27.7	%	$	76,493			32.4	%

The deferred tax assets (liabilities) are as follows:

			Fiscal Year Ended

			September 30, 2010			September 30, 2009
			(in thousands)
Deferred tax assets:
	Compensation and benefit accruals not currently deductible		$	116,679		$	93,649
	Net operating loss carry forwards			31,742			25,513
	Self insurance reserves			48,835			47,673
	R&E and other tax credits			21,463			3,668
	Pension liability			54,800			45,180
	Accrued liabilities			50,946			54,929
	Other			1,631			3,303

		Total deferred tax assets		326,096			273,915

Deferred tax liabilities:
	Unearned revenue			(128,254	)		(93,560	)
	Depreciation and amortization			(25,066	)		(10,635	)
	Acquired intangible assets			(34,316	)		(22,240	)
	State taxes			(2,853	)		1,189
	Investments in joint ventures/non-controlled subsidiaries			(5,210	)		89

		Total deferred tax liabilities		(195,699	)		(125,157	)

		Valuation allowance		(19,753	)		(23,542	)

		Net deferred tax assets	$	110,644		$	125,216

The deferred tax assets and liabilities at September 30, 2009 have been reclassified to include an allocation of the federal tax benefit or detriment associated with the future recognition of state deferred tax assets and liabilities. This allocation has no effect on the overall total deferred tax assets and liabilities for this period.

As of September 30, 2010, the Company has available unused state net operating loss (NOL) carry forwards of $173.6 million and foreign NOL carry forwards of $91.3 million which expire at various dates through 2029. In addition, as of September 30, 2010, the Company has available unused state research and development credits of $8.9 million which can be carried forward indefinitely.

As of September 30, 2010, the deferred tax assets were $326.1 million. The Company has recorded a valuation allowance of approximately $19.8 million related to state and foreign net operating loss carry forwards and credits. The Company has performed an assessment of positive and negative evidence regarding the realization of the net deferred tax asset in accordance with ASC 740-10, "Accounting for Income Taxes." This assessment included the evaluation of scheduled reversals of deferred tax liabilities, the availability of carry forwards and estimates of projected future taxable income. Although realization is not assured, based on the Company's assessment, the Company has concluded that it is more likely than not that the remaining asset of $306.3 million will be realized and, as such, no additional valuation allowance has been provided.

The Company does not provide for U.S. taxes or foreign withholding taxes on undistributed earnings from non-U.S. subsidiaries because such earnings are intended to be reinvested indefinitely. The undistributed earnings are approximately $420 million. If undistributed earnings were distributed, foreign tax credits could become available under current law to reduce the resulting U.S. income tax liability. In March 2010, the Company made a one-time distribution of earnings from an Australian subsidiary of $37.2 million. This transaction was an unusual and infrequent event and the Company will continue to expand its foreign operations by permanently reinvesting its undistributed foreign earnings.

In July 2006, the FASB issued ASC 740-10 and ASC 805-740, "Accounting for Uncertainty in Income Taxes—an interpretation of FASB Statement No. 109" (FIN 48). FIN 48 prescribes a comprehensive framework for the financial statement recognition, measurement, presentation, and disclosure of uncertain income tax positions that the Company has taken or anticipates taking in a tax return, and includes guidance on de-recognition, classification, interest and penalties, accounting in interim periods, and transition rules. On October 1, 2007, the Company adopted the provisions of FIN 48 and recorded adjustments of $1.9 million to deferred taxes and $0.2 million to retained earnings.

As of September 30, 2010, the Company had a liability for unrecognized tax benefits, including potential interest and penalties, net of related tax benefit, totaling $72.1 million. The gross unrecognized tax benefits as of September 30, 2010 and September 30, 2009 were $70.5 million and $52.8 million, respectively, excluding interest, penalties, and related tax benefit. Of the $70.5 million, approximately $40.8 million, including related tax benefits, would be included in the effective tax rate if recognized in the fiscal year ended September 30, 2010. The adoption of ASC 805, "Accounting for Business Combinations," at the beginning of the fiscal year ended September 30, 2010 cha nged the treatment of the reversal of unrecognized tax benefits related to acquired companies which prior to adoption of ASC 805 would have impacted goodwill, but after the adoption of ASC 805, results in the recognition of income tax benefit. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:

	Fiscal Year Ended

	September 30, 2010			September 30, 2009
	(in thousands)
Balance at the beginning of the year	$	52,806		$	56,965
Gross increase in prior years' tax positions		38,327			2,572
Gross decrease in prior years' tax positions		(12,887	)		(11,413	)
Decrease due to settlement with tax authorities		(17,061	)		—
Gross increase in current period's tax positions		10,797			7,435
Lapse of statute of limitations		(1,507	)		(4,457	)
Unrecognized tax benefits acquired in current year		—			1,704

Balance at the end of the year	$	70,475		$	52,806

The Company classifies interest and penalties related to uncertain tax positions within the income tax expense line in the accompanying consolidated statement of income. At September 30, 2009, the accrued interest and penalties were $6.0 million and $0.6 million, respectively, excluding any related income tax benefits. As of September 30, 2010, the accrued interest and penalties were $9.0 million and $0.1 million, respectively, excluding any related income tax benefits.

The Company files income tax returns in numerous tax jurisdictions, including the U.S., and numerous U.S. states and non-U.S. jurisdictions around the world. The statute of limitations varies by jurisdiction in which the Company operates. Because of the number of jurisdictions in which the Company files tax returns, in any given year the statute of limitations in certain jurisdictions may expire without examination within the 12-month period from the balance sheet date. With few exceptions, the Company is no longer subject to U.S. (including federal, state and local) or non-U.S. income tax examinations by tax authorities for years before fiscal year 2005.

A number of tax years are under audit by the relevant federal, state and foreign tax authorities. The Company is currently at appeals with the U.S. Internal Revenue Service for the fiscal years 2006 and 2007 and under examination for the fiscal years 2008 and 2009. The Company anticipates that some of the audits may be concluded in the foreseeable future, including in fiscal year 2011. Based on the status of these audits, it is reasonably possible that the conclusion of the audits may result in a reduction of unrecognized tax benefits. However, it is not possible to estimate the impact of this change at this time due to the early status of the tax examinations.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2010

Commitments and Contingencies.

Commitments and Contingencies

21. Commitments and Contingencies

The Company records amounts representing its estimated liabilities relating to claims, guarantees, litigation, audits and investigations. The Company relies in part on qualified actuaries to assist it in determining the level of reserves to establish for insurance-related claims that are known and have been asserted against it, and for insurance-related claims that are believed to have been incurred based on actuarial analysis, but have not yet been reported to the Company's claims administrators as of the respective balance sheet dates. The Company includes any adjustments to such insurance reserves in its consolidated results of operations.

The Company is a defendant in various lawsuits arising in the normal course of business. In the opinion of management, the ultimate resolution of these matters will not have a material adverse effect on its consolidated balance sheet or statements of income or cash flows.

In some instances, the Company guarantees that a project, when complete, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, the Company may either incur significant additional costs or be held responsible for the costs incurred by the client to achieve the required performance standards. At September 30, 2010, the Company was contingently liable in the amount of approximately $170.2 million under standby letters of credit issued primarily in connection with general and professional liability insurance programs and for payment and performance guarantees.

In the ordinary course of business, the Company enters into various agreements providing financial or performance assurances to clients on behalf of certain unconsolidated partnerships, joint ventures and other jointly executed contracts. These agreements are entered into primarily to support the project execution commitments of these entities. The guarantees have various expiration dates. The maximum potential payment amount of an outstanding performance guarantee is the remaining cost of work to be performed by or on behalf of third parties. Generally, under joint venture arrangements, if a partner is financially unable to complete its share of the contract, the other partner(s) will be required to complete those activities. The Company generally only enters into joint venture arrangements with partners who are reputable, financially sound and who car ry appropriate levels of surety bonds for the project in order to adequately assure completion of their assignments. The Company does not expect that these guarantees will have a material adverse effect on its consolidated balance sheet or statements of income or cash flows.

Combat Support Associates Joint Venture—Kuwait Labor Law Matter

On March 24, 2010, the U.S. Defense Contract Audit Agency (DCAA) issued a DCAA Form 1 questioning costs incurred during fiscal 2007 by Combat Support Associates (CSA), a consolidated joint venture that includes AECOM Government Services, Inc., in the performance of a U.S. Government contract in Kuwait. The costs in question, which have been recognized as revenue on an accrual basis over the life of the contract, were incurred in paying Service Terminal Indemnity (STI) to CSA's employees at the end of their employment agreements. The DCAA questioned the reasonableness and allowability of the payments on the basis that CSA allegedly paid more than the amount required by the Kuwait Labor Law. As a result of the issuance of the DCAA Form 1, the U.S. Government withheld approximately $18 million from payments on c urrent year billings pending final resolution of the questioned costs.

CSA has requested that the U.S. Government contracting officer make a final determination that the costs are proper under the contract. If the contracting officer declines to overrule the DCAA Form 1, CSA intends to utilize all proper avenues to defend against the Government's claim, including appeals processes.

The Company believes based upon advice of Kuwaiti legal counsel that CSA has been and continues to be in compliance with STI requirements of Kuwait labor laws. Therefore, the Company presently believes that, if required, CSA would be successful in obtaining a favorable determination of this matter. However, if the DCAA Form 1 is not overruled and subsequent appeals were unsuccessful, the decision could have a material adverse effect on the Company's results of operations.

Reportable Segments and Geographic Information

12 Months Ended

Sep. 30, 2010

Reportable Segments and Geographic Information

Reportable Segments and Geographic Information

22. Reportable Segments and Geographic Information

The Company's operations are organized into two reportable segments: Professional Technical Services (PTS) and Management Support Services (MSS). The Company's PTS reportable segment delivers planning, consulting, architectural and engineering design, and program and construction management services to commercial and government clients worldwide. The Company's MSS reportable segment provides program and facilities management and maintenance, training, logistics, consulting, and technical assistance and systems integration services, primarily for agencies of the U.S. government. These reportable segments are organized by the types of services provided, the differing specialized needs of the respective clients, and how the Company manages its business. The Company has aggregated various operating segments into its PTS reportable segment based on their sim ilar characteristics, including similar long term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers.

Management internally analyzes the results of its operations using several non-GAAP measures. A significant portion of the Company's revenues relates to services provided by subcontractors and other non-employees that it categorizes as other direct costs. Other direct costs are segregated from cost of revenues resulting in revenue, net of other direct costs, which is a measure of work performed by Company employees. The Company has included information on revenue, net of other direct costs, as it believes that it is useful to view our revenue exclusive of costs associated with external service providers.

The following tables set forth unaudited summarized financial information concerning the Company's reportable segments:

	Professional Technical Services			Management Support Services			Corporate(1)			Total

	(in thousands)
*Reportable Segments:*
Fiscal Year Ended September 30, 2010:
Revenue	$	5,393,729		$	1,152,062		$	—		$	6,545,791
Revenue, net of other direct costs(2)		3,839,309			366,468			—			4,205,777
Gross profit		389,823			40,448			—			430,271
Equity in earnings of joint ventures		9,484			11,503			—			20,987
General and administrative expenses		—			—			110,463			110,463
Operating income		399,307			51,951			(110,463	)		340,795
Segment assets		4,479,413			734,824			28,672			5,242,909
Gross profit as a % of revenue		7.2	%		3.5	%					6.6	%
Gross profit as a % of revenue, net of other direct costs(2)		10.2	%		11.0	%					10.2	%
Fiscal Year Ended September 30, 2009:
Revenue	$	5,057,688		$	1,061,777		$	—		$	6,119,465
Revenue, net of other direct costs(2)		3,565,481			253,488			—			3,818,969
Gross profit		312,948			38,255			—			351,203
Equity in earnings of joint ventures		12,465			10,092			—			22,557
General and administrative expenses		—			—			86,894			86,894
Operating income		325,413			48,347			(86,894	)		286,866
Segment assets		3,537,342			266,328			(13,789	)		3,789,881
Gross profit as a % of revenue		6.2	%		3.6	%					5.7	%
Gross profit as a % of revenue, net of other direct costs(2)		8.8	%		15.1	%					9.2	%
Fiscal Year Ended September 30, 2008:
Revenue	$	4,327,871		$	866,811		$	—		$	5,194,682
Revenue, net of other direct costs(2)		3,133,731			155,777			—			3,289,508
Gross profit		261,614			25,284			—			286,898
Equity in earnings of joint ventures		13,279			8,912			—			22,191
General and administrative expenses		—			—			70,582			70,582
Segment income from operations		274,893			34,196			(70,582	)		238,507
Segment assets		3,289,489			216,537			90,164			3,596,190
Gross profit as a % of revenue		6.0	%		2.9	%					5.5	%
Gross profit as a % of revenue, net of other direct costs(2)		8.3	%		16.2	%					8.7	%

(1): Corporate assets include intercompany eliminations.
(2): Non-GAAP measure.

Geographic Information:

	Fiscal Year Ended

	September 30, 2010				September 30, 2009				September 30, 2008
	Revenue		Long-Lived Assets		Revenue		Long-Lived Assets		Revenue		Long-Lived Assets
	(in thousands)
United States	$	3,982,892	$	1,618,657	$	3,756,804	$	1,005,027	$	3,149,663	$	1,021,881
Foreign Countries		2,562,899		572,723		2,362,661		479,180		2,045,019		412,073

Total	$	6,545,791	$	2,191,380	$	6,119,465	$	1,484,207	$	5,194,682	$	1,433,954

The Company attributes revenue by geography based on the external customer's country of origin. Long-lived assets consist of noncurrent assets excluding deferred tax assets.

Quarterly Financial Information-Unaudited

12 Months Ended

Sep. 30, 2010

Quarterly Financial Information-Unaudited

Quarterly Financial Information-Unaudited

24. Quarterly Financial Information—Unaudited

In the opinion of management, the following unaudited quarterly data reflects all adjustments necessary for a fair statement of the results of operations. All such adjustments are of a normal recurring nature. These results of operations include certain reclassifications for discontinued operations for the first, second, and third quarter of fiscal 2009 as described in Note 7.

Fiscal Year 2010:			First Quarter			Second Quarter			Third Quarter			Fourth Quarter

			(in thousands, except per share data)
Revenue			$	1,480,784		$	1,601,166		$	1,635,183		$	1,828,658
Cost of revenue				1,397,807			1,493,271			1,520,118			1,704,324

	Gross profit			82,977			107,895			115,065			124,334
Equity in earnings of joint ventures				4,378			3,451			5,941			7,217
General and administrative expenses				21,865			27,898			28,327			32,373

	Income from operations			65,490			83,448			92,679			99,178
Other income (expense)				1,704			1,829			(253	)		6,970
Interest income (expense), net				(975	)		(2,385	)		(1,126	)		(5,442	)

	Income from continuing operations before income tax expense			66,219			82,892			91,300			100,706
Income tax expense				16,465			21,048			22,665			31,518

	Income from continuing operations			49,754			61,844			68,635			69,188
Discontinued operations, net of tax				113			(190	)		—			—

	Net income			49,867			61,654			68,635			69,188
Non-controlling interest in income of consolidated subsidiaries, net of tax				(4,085	)		(3,165	)		(3,793	)		(1,414	)

	Net income attributable to AECOM		$	45,782		$	58,489		$	64,842		$	67,774

Net income allocation:
	Preferred stock dividend		$	35		$	35		$	34		$	23
	Net income available for common stockholders			45,747			58,454			64,808			67,751

	Net income attributable to AECOM		$	45,782		$	58,489		$	64,842		$	67,774

Net income attributable to AECOM per share:
	Basic
		Continuing operations	$	0.40		$	0.51		$	0.57		$	0.58
		Discontinued operations		—			—			—			—

			$	0.40		$	0.51		$	0.57		$	0.58

	Diluted
		Continued operations	$	0.40		$	0.51		$	0.56		$	0.58
		Discontinued operations		—			—			—			—

			$	0.40		$	0.51		$	0.56		$	0.58

Weighted average common shares outstanding:
	Basic			113,153			113,801			114,539			115,881
	Diluted			114,498			115,044			115,620			116,690

Fiscal Year 2009:			First Quarter			Second Quarter			Third Quarter			Fourth Quarter

			(in thousands, except per share data)
Revenue			$	1,452,628		$	1,498,058		$	1,541,289		$	1,627,490
Cost of revenue				1,372,021			1,410,125			1,453,772			1,532,344

	Gross profit			80,607			87,933			87,517			95,146
Equity in earnings of joint ventures				5,736			4,904			6,153			5,764
General and administrative expenses				17,246			23,931			20,071			25,646

	Income from operations			69,097			68,906			73,599			75,264
Other income (expense)				(4,788	)		(1,418	)		3,248			4,671
Interest income (expense), net				(3,598	)		(1,919	)		(2,617	)		(2,557	)

	Income from continuing operations before income tax expense			60,711			65,569			74,230			77,378
Income tax expense				17,460			18,431			21,187			19,924

	Income from continuing operations			43,251			47,138			53,043			57,454
Discontinued operations, net of tax				500			1,192			1,118			182

	Net income			43,751			48,330			54,161			57,636
Non-controlling interest in income of consolidated subsidiaries, net of tax				(2,846	)		(4,932	)		(3,040	)		(3,364	)

	Net income attributable to AECOM		$	40,905		$	43,398		$	51,121		$	54,272

Net income allocation:
	Preferred stock dividend		$	36		$	35		$	34		$	34
	Net income available for common stockholders			40,869			43,363			51,087			54,238

	Net income attributable to AECOM		$	40,905		$	43,398		$	51,121		$	54,272

Net income attributable to AECOM per share:
	Basic
		Continuing operations	$	0.39		$	0.40		$	0.45		$	0.49
		Discontinued operations		—			0.01			0.01			—

			$	0.39		$	0.41		$	0.46		$	0.49

	Diluted
		Continued operations	$	0.38		$	0.39		$	0.45		$	0.48
		Discontinued operations		—			0.01			0.01			—

			$	0.38		$	0.40		$	0.46		$	0.48

Weighted average common shares outstanding:
	Basic			104,529			106,465			109,872			111,145
	Diluted			106,620			108,148			111,515			112,542

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Sep. 30, 2010	Nov. 12, 2010	Mar. 31, 2010
Document and Entity Information
Entity Registrant Name	AECOM TECHNOLOGY CORP
Entity Central Index Key	0000868857
Document Type	10-K
Document Period End Date	Sep. 30, 2010
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,580
Entity Common Stock, Shares Outstanding		118,536,595
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2010	Sep. 30, 2009
Statement
Common stock, authorized shares	150,000,000	150,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued shares	115,316,783	110,890,075
Common stock, outstanding shares	115,316,783	110,890,075
Convertible Preferred Stock
Statement
Preferred stock, authorized shares	2,500,000	2,500,000
Preferred stock, issued shares	2,305	25,130
Preferred stock, outstanding shares	2,305	25,130
Preferred stock, liquidation preference value (in dollars per share)	$ 100	$ 100
Preferred stock, Class C
Statement
Preferred stock, authorized shares	200	200
Preferred stock, issued shares	52	56
Preferred stock, outstanding shares	52	56
Preferred stock, no par value (in dollars per share)
Preferred stock, liquidation preference value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, Class E
Statement
Preferred stock, authorized shares	20	20
Preferred stock, issued shares	4	5
Preferred stock, outstanding shares	4	5
Preferred stock, no par value (in dollars per share)
Preferred stock, liquidation preference value (in dollars per share)	$ 1.00	$ 1.00

Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Millions	12 Months Ended
	Sep. 30, 2009 USD ($)
Consolidated Statements of Stockholders' Equity
Issuance of stock in secondary public offering, offering costs	$ 0.6