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Consolidated Balance Sheets - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2010	Sep. 30, 2010
CURRENT ASSETS:
Cash and cash equivalents	$ 349,120	$ 570,521
Cash in consolidated joint ventures	72,118	42,336
Total cash and cash equivalents	421,238	612,857
Accounts receivable-net	2,315,592	2,170,188
Prepaid expenses and other current assets	126,608	157,840
Income taxes receivable	120,826
Deferred tax assets-net		5,614
TOTAL CURRENT ASSETS	2,984,264	2,946,499
PROPERTY AND EQUIPMENT-NET	282,436	258,784
DEFERRED TAX ASSETS-NET	40,319	105,030
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	69,674	53,235
GOODWILL	2,007,684	1,690,386
INTANGIBLE ASSETS-NET	137,863	108,645
OTHER NON-CURRENT ASSETS	97,800	80,330
TOTAL ASSETS	5,620,040	5,242,909
CURRENT LIABILITIES:
Short-term debt	6,143	2,087
Accounts payable	553,619	589,076
Accrued expenses and other current liabilities	819,144	902,824
Billings in excess of costs on uncompleted contracts	358,262	341,959
Income taxes payable		1,960
Deferred tax liability-net	5,147
Current portion of long-term debt	12,750	14,354
TOTAL CURRENT LIABILITIES	1,755,065	1,852,260
OTHER LONG-TERM LIABILITIES	387,988	337,494
LONG-TERM DEBT	1,187,591	914,686
TOTAL LIABILITIES	$ 3,330,644	$ 3,104,440
COMMITMENTS AND CONTINGENCIES (Note 14)
AECOM STOCKHOLDERS' EQUITY:
Common stock-authorized, 150,000,000 shares of $0.01 par value; issued and outstanding, 116,679,645 and 115,316,783 as of December 31 and September 30, 2010, respectively	$ 1,167	$ 1,153
Additional paid-in capital	1,662,764	1,585,044
Accumulated other comprehensive loss	(135,285)	(147,521)
Retained earnings	707,971	651,105
TOTAL AECOM STOCKHOLDERS' EQUITY	2,236,617	2,090,012
Noncontrolling interests	52,779	48,457
TOTAL STOCKHOLDERS' EQUITY	2,289,396	2,138,469
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	5,620,040	5,242,909
Convertible Preferred Stock
AECOM STOCKHOLDERS' EQUITY:
Preferred stock		231
Preferred stock, Class C
AECOM STOCKHOLDERS' EQUITY:
Preferred stock
Preferred stock, Class E
AECOM STOCKHOLDERS' EQUITY:
Preferred stock

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2010	Sep. 30, 2010
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	116,679,645	115,316,783
Common stock, outstanding shares	116,679,645	115,316,783
Convertible Preferred Stock
Statement
Preferred stock, authorized shares	2,500,000	2,500,000
Preferred stock, issued shares	0	2,305
Preferred stock, outstanding shares	0	2,305
Preferred stock, liquidation preference value (in dollars per share)	$ 100.00	$ 100.00
Preferred stock, Class C
Statement
Preferred stock, authorized shares	200	200
Preferred stock, issued shares	0	52
Preferred stock, outstanding shares	0	52
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	4
Preferred stock, outstanding shares	4	4
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 Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Statement
Revenue	$ 1,936,183	$ 1,480,784
Cost of revenue	1,830,848	1,397,807
Gross profit	105,335	82,977
Equity in earnings of joint ventures	8,097	4,378
General and administrative expenses	23,262	21,865
Income from operations	90,170	65,490
Other income	2,288	1,704
Interest expense, net	(9,872)	(975)
Income from continuing operations before income tax expense	82,586	66,219
Income tax expense	20,503	16,465
Income from continuing operations	62,083	49,754
Discontinued operations, net of tax		113
Net income	62,083	49,867
Noncontrolling interests in income of consolidated subsidiaries, net of tax	(5,215)	(4,085)
Net income attributable to AECOM	56,868	45,782
Net income allocation:
Preferred stock dividend	2	35
Net income available for common stockholders	56,866	45,747
Net income attributable to AECOM	$ 56,868	$ 45,782
Basic
Continuing operations (in dollars per share)	$ 0.48	$ 0.40
Discontinued operations (in dollars per share)
Total Basic (in dollars per share)	0.48	0.40
Diluted
Continuing operations (in dollars per share)	0.48	0.40
Discontinued operations (in dollars per share)
Total Diluted (in dollars per share)	$ 0.48	$ 0.40
Weighted average shares outstanding:
Basic (in shares)	118,001	113,153
Diluted (in shares)	119,115	114,498

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 62,083	$ 49,867
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	29,843	22,340
Equity in earnings of unconsolidated joint ventures	(8,097)	(4,378)
Distribution of earnings from unconsolidated joint ventures	7,682	3,240
Non-cash stock compensation	8,030	8,813
Excess tax benefit from share-based payment	(60,051)	(768)
Foreign currency translation	(3,069)	2,425
Other non-cash expense	749
Changes in operating assets and liabilities, net of effects of acquisitions:
Settlement of deferred compensation plan liability	(89,688)
Accounts receivable	(10,148)	(16,700)
Prepaid expenses and other assets	4,177	(10,575)
Accounts payable	(47,994)	(51,727)
Accrued expenses and other current liabilities	(54,766)	(57,912)
Billings in excess of costs on uncompleted contracts	9,562	23,794
Other long-term liabilities	(25,945)	2,147
Income taxes payable	(1,713)	(912)
Net cash used in operating activities from continuing operations	(179,345)	(30,346)
Net cash used in operating activities from discontinued operations		(4,227)
Net cash used in operating activities	(179,345)	(34,573)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for business acquisitions, net of cash acquired	(298,731)	(39,600)
Proceeds from disposal of business		25,799
Net investment in unconsolidated joint ventures	(18,897)	4,768
Purchases of investment securities/funds	(16,595)
Payments for capital expenditures	(16,019)	(14,520)
Net cash used in investing activities	(350,242)	(23,553)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	582,009	19,246
Repayments of borrowings under credit agreements	(311,697)	(4,291)
Proceeds from loan on deferred compensation plan investments	59,324
Proceeds from issuance of common stock	6,081	2,876
Proceeds from exercise of stock options	2,902	1,191
Payments to repurchase common stock	(63,461)	(1,222)
Excess tax benefit from share-based payment	60,051	768
Net distributions to noncontrolling interests	(1,062)	(973)
Net cash provided by financing activities	334,147	17,595
EFFECT OF EXCHANGE RATE CHANGES ON CASH	3,821	2,703
NET DECREASE IN CASH AND CASH EQUIVALENTS	(191,619)	(37,828)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	612,857	290,777
CASH AND CASH EQUIVALENTS AT END OF PERIOD	421,238	252,949
NON-CASH INVESTING AND FINANCING ACTIVITY
Common stock issued in acquisitions	$ 58,868	$ 33,500

Business Acquisitions, Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2010

Business Acquisitions, Goodwill and Intangible Assets

Business Acquisitions, Goodwill and Intangible Assets

3. Business Acquisitions, Goodwill and Intangible Assets

The Company completed five business acquisitions during the quarter ended December 31, 2010. Total consideration related to these acquisitions consisted of $298.7 million in cash, net of cash acquired, and $58.9 million in Company stock. Business acquisitions completed during the quarter ended December 31, 2010 did not meet the quantitative thresholds to require pro forma disclosures of operating results either individually or in the aggregate based on the Company’s consolidated assets and income. Significant acquisitions during the quarter ended December 31, 2010 included four separate global cost and project management consultancy firms, that operated under the Davis Langdon name, including businesses in Europe and Middle East, Australia and New Zealand, South Africa, and North America.&nb sp; Each of the four acquisitions were separately negotiated, executed by separate purchase agreements, with no one acquisition contingent upon the other, and the four businesses, although operating as part of a Swiss Verein, under which they shared certain naming and marketing rights, were not under common control or management. Business acquisitions during the quarter ended December 31, 2010 also included RSW, Inc., an international engineering firm based in Montreal, Quebec, Canada.

The changes in the carrying value of goodwill by reporting segment for the three months ended December 31, 2010 and 2009 were as follows:

	September 30, 2010		Post- Acquisition Adjustments		Foreign Exchange Impact		Acquired		December 31, 2010
	(in millions)
Reporting Unit
Professional Technical Services	$	1,355.0	$	4.9	$	6.3	$	302.7	$	1,668.9
Management Support Services	335.4		3.4		—		—		338.8
Total	$	1,690.4	$	8.3	$	6.3	$	302.7	$	2,007.7

	September 30, 2009		Post- Acquisition Adjustments			Foreign Exchange Impact		Acquired		December 31, 2009
	(in millions)
Reporting Unit
Professional Technical Services	$	1,060.1	$	(1.9	)	$	4.8	$	46.1	$	1,109.1
Management Support Services	2.8		—			—		21.8		24.6
Total	$	1,062.9	$	(1.9	)	$	4.8	$	67.9	$	1,133.7

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives as of December 31, 2010 and September 30, 2010, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows:

	December 31, 2010							September 30, 2010
	Gross Amount		Accumulated Amortization			Intangible Assets, Net		Gross Amount		Accumulated Amortization			Intangible Assets, Net		Amortization Period
	(in millions)														(years)
Backlog	$	98.5	$	(70.0	)	$	28.5	$	80.7	$	(65.5	)	$	15.2	1 – 5
Customer relationships	134.8		(28.5		)	106.3		114.0		(24.6		)	89.4		10
Trademark / tradename	4.0		(0.9		)	3.1		4.2		(0.2		)	4.0		2
Total	$	237.3	$	(99.4	)	$	137.9	$	198.9	$	(90.3	)	$	108.6

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 has yet to complete its final valuation of intangible assets for certain recent acquisitions. During the quarter ended December 31, 2010, the Company completed its final valuation of identifiable intangible assets for Tishman Construction Corporation (Tishman) and McNeil Technologies, Inc. (McNeil). These final valuations were not materially different from previously recorded estimates. The C ompany is in the process of finalizing deferred taxes and fair values relating to projects and leases for recent acquisitions including Tishman and McNeil. Post-acquisition adjustments primarily relate to project related liabilities.

Amortization expense of acquired intangible assets included within cost of revenue was $9.1 million and $7.1 million for the three months ended December 31, 2010 and 2009, respectively. The following table presents estimated amortization expense of existing intangible assets for the remainder of fiscal 2011 and for the succeeding years:

Fiscal Year	(in millions)
2011 (nine months remaining)	$	25.6
2012	24.2
2013	16.1
2014	16.0
2015	14.7
Thereafter	41.3
Total	$	137.9

In addition to the above, amortization expense of acquired intangible assets included within equity in earnings of joint ventures was $2.2 million for the three months ended December 31, 2010. This amortization expense is not expected to be significant for the remainder of fiscal 2011.

Restructuring Costs

3 Months Ended

Dec. 31, 2010

Restructuring Costs

Restructuring Costs

4. Restructuring Costs

In fiscal 2009, in connection with the Earth Tech acquisition, the Company initiated plans for workforce reductions and facility closures. In fiscal 2010, the Company initiated a restructuring plan for its United Kingdom operations to reduce ongoing overhead costs and improve operating efficiencies. Restructuring costs are aggregated in cost of revenue within its consolidated statements of income. The accrued facility costs are expected to be paid over the next four years.

The following table presents a reconciliation of the restructuring reserve balance in the Company’s Professional Technical Services segment from October 1, 2010 to December 31, 2010.

	Three Months Ended December 31, 2010
	Severance Costs			Facility Costs			Total
	(in millions)
Accrual, beginning of the period	$	1.3		$	15.8		$	17.1
Accrued and other adjustments during the period	0.2			—			0.2
Paid during the period	(1.0		)	(2.7		)	(3.7		)
Accrual, end of the period	$	0.5		$	13.1		$	13.6

Accounts Receivable-Net

3 Months Ended

Dec. 31, 2010

Accounts Receivable-Net

Accounts Receivable-Net

5. Accounts Receivable—Net

Net accounts receivable consisted of the following as of December 31, 2010 and September 30, 2010:

	December 31, 2010			September 30, 2010
	(in millions)
Billed	$	1,312.8		$	1,254.8
Unbilled	1,019.5			956.3
Contract retentions	88.6			57.9
Total accounts receivable—gross	2,420.9			2,269.0
Allowance for doubtful accounts	(105.3		)	(98.8		)
Total accounts receivable—net	$	2,315.6		$	2,170.2

Billed accounts receivable represent amounts billed to clients that have yet to be collected. Unbilled accounts receivable represent revenue recognized but not yet billed pursuant to contract terms or accounts billed after the period end. Substantially all unbilled receivables as of December 31, 2010 and September 30, 2010 are expected to be billed and collected within twelve months. Contract retentions represent amounts invoiced to clients where payments have been withheld pending the completion of certain milestones, other contractual conditions or upon the completion of the project. These retention agreements vary from project to project and could be outstanding for several months or years.

Allowances for doubtful accounts have been determined through specific identification of amounts considered to be uncollectible and potential write-offs, plus a non-specific allowance for other amounts for which some potential loss has been determined to be probable based on current and past experience.

Other than the U.S. government, no single client accounted for more than 10% of the Company’s accounts receivable as of December 31, 2010 or September 30, 2010.

Joint Ventures and Variable Interest Entities

3 Months Ended

Dec. 31, 2010

Joint Ventures and Variable Interest Entities

Joint Ventures and Variable Interest Entities

6. Joint Ventures and Variable Interest Entities

The Company’s 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 the joint venture partners. The joint venture executive committee normally provides management oversight and controls decisions which could have significant impact on the joint venture’s economics.

Some of the Company’s joint ventures have no employees and minimal operating expenses. For these joint ventures, the Company’s 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 records its share of the services performed and the costs associated with these services, in the Company’s results of operations since it does not have risk related to services provided by the other joint venture partner(s). For certain of these joint ventures where a fee is added by an unconsolidated 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 joint ventures that have their own employees and operating expenses, and to which the Company generally makes a capital contribution. The Company accounts for these joint ventures either as consolidated entities or equity method investments based on the criteria further discussed below.

Adoption of new consolidation standard

Effective October 1, 2010, the Company adopted guidance issued by the FASB on the consolidation of variable interest entities (VIEs). The new consolidation standard requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. The process for identifying the primary beneficiary of a VIE requires consideration of the factors which provide a party the power to direct the activities that most significantly impact the joint ventures’ economic performance, including powers granted to the joint venture’s program manager, powers contained in the joint venture governing board, and to a certain extent, a company’s economic interest in the joint venture. The Company analyzed its joint ventures and effective October 1, 2010, prospectively classified them according to the new consolidation standard as either:

· a VIE that must be consolidated because the Company is the primary beneficiary or the joint venture is not a VIE; however, the Company holds the majority voting interest with no significant participative rights available to the other partners; or

· a VIE that does not require consolidation because the Company is not the primary beneficiary or the joint venture is not a VIE and the Company does not hold the majority voting interest.

Once it was determined that the Company has the power to direct the activities that most significantly impact the joint ventures’ economic performance, the Company assessed whether or not it has the obligation to absorb losses or rights to receive benefits from the entities that could potentially be significant to the entities.

The adoption of the new consolidation standard did not result in the consolidation or de-consolidation of any joint ventures that were material either individually or in the aggregate to the consolidated financial statements of the Company. The Company has not provided financial or other support during the periods presented to any of its VIEs that it was not previously contractually required to provide. Contractually required support provided to the Company’s joint ventures is further discussed in Note 14.

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

	December 31, 2010		September 30, 2010
	(in millions)
Current assets	$	245.3	$	242.2
Non-current assets	3.9		17.4
Total assets	$	249.2	$	259.6

Current liabilities	$	18.2	$	46.8
Non-current liabilities	39.3		33.4
Total liabilities	57.5		80.2

Total AECOM equity	138.9		130.9
Noncontrolling interests	52.8		48.5
Total owners’ equity	191.7		179.4
Total liabilities and owners’ equity	$	249.2	$	259.6

Total revenues of the consolidated joint ventures were $216.7 million and $184.4 million for the three months ended December 31, 2010 and December 31, 2009, respectively. The assets of the Company’s consolidated joint ventures are restricted for use only by the particular joint venture and are not available for the general operations of the Company.

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

	December 31, 2010		September 30, 2010
	(in millions)
Current assets	$	458.7	$	393.7
Non-current assets	34.7		6.1
Total assets	$	493.4	$	399.8

Current liabilities	$	333.7	$	319.8
Non-current liabilities	4.9		4.5
Total liabilities	338.6		324.3

Joint ventures’ equity	154.8		75.5
Total liabilities and joint ventures’ equity	$	493.4	$	399.8

AECOM’s investment in joint ventures	$	69.7	$	53.2

	Three Months Ended
	December 31, 2010		December 31, 2009
	(in millions)
Unconsolidated joint ventures’:
Total revenues	$	440.0	$	389.2
Cost of revenues	415.1		353.1

AECOM’s equity in earnings of unconsolidated joint ventures:
Pass through joint ventures	$	0.9	$	1.0
Other joint ventures	7.2		3.4
Total	$	8.1	$	4.4

Disclosures About Pension Benefit Obligations

3 Months Ended

Dec. 31, 2010

Disclosures About Pension Benefit Obligations

Disclosures About Pension Benefit Obligations

7. Disclosures About Pension Benefit Obligations

The following table details the components of net periodic benefit cost for the Company’s pension plans for the three months ended December 31, 2010 and 2009:

	Three Months Ended
	December 31, 2010						December 31, 2009
	U.S.			Int’l			U.S.			Int’l
	(in millions)
Components of net periodic (benefit) cost:
Service costs	$	—		$	1.1		$	—		$	1.3
Interest cost on projected benefit obligation	2.0			6.6			2.0			5.5
Expected return on plan assets	(2.0		)	(6.7		)	(2.0		)	(6.2		)
Amortization of net loss	0.6			0.7			0.3			0.6
Curtailment (gain) / loss recognized	—			—			(1.9		)	—
Net periodic (benefit) cost	$	0.6		$	1.7		$	(1.6	)	$	1.2

The total amounts of employer contributions paid for the three months ended December 31, 2010 were $14.1 million for U.S. plans and $4.0 million for non-U.S. plans. The expected remaining scheduled annual employer contributions for the fiscal year ending September 30, 2011 are $3.5 million for U.S. plans and $14.5 million for non-U.S. plans. 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. Included in other long-term liabilities are net pension liabilities of $185.1 million and $164.2 million as of December 31, 2010 and September 30, 2010, respectively.

Debt

3 Months Ended

Dec. 31, 2010

Debt

Debt

8. Debt

Debt consisted of the following:

	December 31, 2010			September 30, 2010
	(in millions)
Unsecured term credit agreements	$	607.4		$	609.1
Unsecured senior notes	251.3			250.5
Unsecured revolving credit facility	299.0			26.5
Secured notes	25.8			25.9
Other debt	23.0			19.1
Total debt	1,206.5			931.1
Less: Current portion of debt and short-term borrowings	(18.9		)	(16.4		)
Long-term debt, less current portion	$	1,187.6		$	914.7

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

Fiscal Year
2011 (nine months remaining)	$	18.0
2012	339.7
2013	122.2
2014	451.4
2015	1.4
Thereafter	273.8
Total	$	1,206.5

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 Com pany at the end of each fiscal quarter. For the quarter ended December 31, 2010, the average interest rate was 2.8%. 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.

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. In June 2010, certain of our wholly-owned subsidiaries entered into an amendment to this credit agreement to, among other things, permit the Company to enter into the note purchase agreement for a private placement of senior unsecured notes (as described bel ow) and permit the subsidiaries to enter into subsidiary guarantees in connection therewith. The amounts outstanding on this credit agreement were $7.4 million and $9.1 million at December 31, 2010 and September 30, 2010, respectively.

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. The outstanding accreted balance of Series B Notes was $76.3 million at December 31, 2010. The Company’s obligations under the Notes are guaranteed b y certain subsidiaries of the Company pursuant to one or more subsidiary guarantees.

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 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 December 31, 2010 and September 30, 2010, $299.0 million and $26.5 million were outstanding under the credit facility, respectively. At December 31, 2010 and September 30, 2010, outstanding standby letters of credit totaled $31.8 million and $31.5 million, respectively, under the credit facility. The Company could have drawn upon the remaining $269.2 million available under the credit facility.

Covenants and Restrictions

All of the Company’s debt agreements discussed above contain certain negative covenants relating to the Company’s leverage ratio, which is based on outstanding borrowings (including financial letters of credit) and earnings before interest, taxes, depreciation, and amortization. The Company’s Unsecured Revolving Credit Facility and Unsecured Term Credit Agreements also contain certain covenants that limit the Company’s ability to, among other things, (i) issue financial and commercial standby letters of credit, (ii) issue performance guarantees, (iii) incur indebtedness and contingent obligations, and (iv) pay dividends or make certain other restricted payments or investments. The Company’s Unsecured Senior Notes contain certain covenants that restrict indebtedness and require t he Company to maintain a minimum net worth. Should the Company fail to comply with these covenants, all or a portion of its borrowings under the Unsecured Senior Notes and Unsecured Term Credit Agreements could become immediately payable and its Unsecured Revolving Credit Facility could be terminated. At December 31, 2010, the Company was in compliance with all such covenants.

Interest Rate Swaps

The Company previously had interest rate swap agreements with financial institutions to fix the variable interest rates on portions of debt outstanding under the Company’s revolving credit facility which expired in August 2010. The Company applied cash flow hedge accounting for the interest rate swap agreements. 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.

The Company’s average effective interest rate on borrowings under the revolving credit facility, including the effects of the swaps, during the three months ended December 31, 2010 and 2009 was 1.2% and 3.6%, 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 December 31, 2010, the Company had $248.4 million of unsecured credit facilities primarily used to cover periodic overdrafts and letters of credit, of which, $158.1 million was utilized for outstanding letters of credit.

Fair Value Measurements

3 Months Ended

Dec. 31, 2010

Fair Value Measurements

Fair Value Measurements

9. Fair Value Measurements

Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact, and the Company considers assumptions that market participants would use when pricing the asset or liability. It measures certain financial and nonfinancial assets and liabilities at fair value on a recurring and nonrecurring basis.

Nonfinancial 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 three months ended December 31, 2010 and December 31, 2009, 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.

Fair Value Hierarchy

The three levels of inputs that may be used to measure fair value are as follows:

· Level 1 Quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

· Level 2 Observable inputs other than quoted prices included within Level 1, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities.

· Level 3 Unobservable inputs that are significant to the measurement of the fair value of assets or liabilities.

There were no significant transfers between any of the levels of the fair value hierarchy during the three months ended December 31, 2010 and December 31, 2009.

The following tables summarize the Company’s non-pension financial assets and liabilities measured at fair value on a recurring basis (at least annually) in millions:

	December 31, 2010		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)

U.S. government security (1)	$	10.2	$	10.2	$	—
Corporate notes and bonds (1)	2.9		2.9		—
Deferred compensation plan assets (2)	—		—		—
Total assets	$	13.1	$	13.1	$	—

Deferred compensation plan liabilities (2)	$	0.9	$	—	$	0.9
Total liabilities	$	0.9	$	—	$	0.9

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

U.S. government security (1)	$	9.2	$	9.2	$	—
Corporate notes and bonds (1)	2.3		2.3		—
Deferred compensation plan assets (2)	—		—		—
Total assets	$	11.5	$	11.5	$	—

Deferred compensation plan liabilities (2)	$	88.8	$	—	$	88.8
Total liabilities	$	88.8	$	—	$	88.8

(1)	Corporate bonds and US government bonds are valued using quoted market prices.
(2)	For additional information about the Company’s deferred compensation plan, refer to Note 18 to the Consolidated Financial Statements in the Company’s 2010 Form 10-K and Note 13 herein.

Share-based Payment

3 Months Ended

Dec. 31, 2010

Share-based Payment

Share-based Payment

10. Share-based Payment

The fair value of the Company’s stock option awards is estimated on the date of grant using the Black-Scholes option-pricing model. The expected term of awards granted represents the period of time the awards are expected to be outstanding. As the Company’s common stock has only been publicly-traded since May 2007, expected volatility was based on a historical volatility, for a period consistent with the expected option term, of publicly-traded peer companies. The risk-free interest rate is based on U.S. Treasury bond rates with maturities equal to the expected term of the option on the grant date. The Company uses historical data as a basis to estimate the probability of forfeitures.

The fair value of options granted during the three months ended December 31, 2010 and 2009 were determined using the following weighted average assumptions:

	Three Months Ended December 31,
	2010		2009
Dividend yield	—		—
Expected volatility	38.6	%	39.9	%
Risk-free interest rate	1.5	%	1.6	%
Term (in years)	4.5		4.5

For the three months ended December 31, 2010 and 2009, compensation expense recognized related to stock options as a result of the fair value method was $1.1 million and $1.3 million, respectively. Unrecognized compensation expense relating to stock options outstanding as of December 31, and September 30, 2010 was $6.6 million and $4.7 million, respectively, to be recognized on a straight-line basis over the awards’ respective vesting periods, which are generally three years.

Stock option activity for the three months ended December 31 was as follows:

	2010				2009
	Shares of stock under options		Weighted average exercise price		Shares of stock under options		Weighted average exercise price
	(in millions)		(in millions)
Outstanding at September 30	3.1		$	19.09	3.8		$	16.36
Options granted	0.4		27.54		0.3		24.45
Options exercised	(0.3	)	11.39		(0.1	)	9.97
Options forfeited or expired	—		22.23		—		10.59
Outstanding at December 31	3.2		20.64		4.0		17.24

Vested and expected to vest in the future as of December 31	3.1		$	20.51	3.9		$	16.93

The weighted average grant-date fair value of stock options granted during the three months ended December 31, 2010 and 2009 was $9.39 and $8.60, 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 $4.4 million and $5.3 million during the three months ended December 31, 2010 and 2009, respectively. Additionally, the Company issues restricted stock units which are earned based on service conditions, resulting in compensation expense of $2.5 million and $1.8 million during the three months ended December 31, 2010 and 2009, respectively. Unrecognized compensation expense related to PEP units and restricted stock units outstanding was $38.0 million and $31.5 million as of December 31, 2010 and $27 .8 million and $16.0 million as of September 30, 2010, respectively, to be recognized on a straight-line basis over the awards’ respective vesting periods which are generally three years.

Cash flows 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 $60.1 million and $0.8 million for the three months ended December 31, 2010 and 2009, respectively, have been classified as financing cash inflows in the consolidated statements of cash flows. See also Note 13.

Earnings Per Share

3 Months Ended

Dec. 31, 2010

Earnings Per Share

Earnings Per Share

12. Earnings Per Share

Basic earnings per share (EPS) excludes dilution and is computed by dividing net income available for common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income attributable to AECOM by the weighted average number of common shares outstanding and potential common stock equivalent shares for the period. The Company includes as potential common stock equivalent shares the weighted average dilutive effects of outstanding share-based payment awards using the treasury stock method.

The following table sets forth a reconciliation of the denominators for basic and diluted EPS:

	Three Months Ended
	December 31, 2010	December 31, 2009
	(in millions)
Denominator for basic earnings per share	118.0	113.2
Potential common shares:
Stock options	0.7	1.1
Other	0.4	0.2
Denominator for diluted earnings per share	119.1	114.5

For the three months ended December 31, 2010 and 2009, no share-based payment awards were excluded from the calculation of potential common shares because they were considered anti-dilutive. The Company excludes stock options from the computation of diluted EPS when the option’s price is greater than the average market price of the Company’s common shares. The Company also would exclude common stock equivalent shares from the computation in loss periods as their effect would be anti-dilutive.

Other Financial Information

3 Months Ended

Dec. 31, 2010

Other Financial Information

Other Financial Information

13. Other Financial Information

Accrued expenses consist of the following:

	December 31, 2010		September 30, 2010
	(in millions)
Accrued salaries and benefits	$	324.4	$	363.7
Accrued contract costs	418.2		381.1
Deferred compensation plan liability	0.9		88.8
Other accrued expenses	75.6		69.2
	$	819.1	$	902.8

Accrued contract costs above include balances related to professional liability accruals of $112.9 million and $108.6 million as of December 31, 2010 and September 30, 2010, respectively. Other accrued contract costs primarily relate to costs for services provided by subcontractors and other non-employees.

Deferred Compensation Plan Termination

In December 2009, the Company elected to terminate its U.S. deferred compensation plan. In accordance with tax code requirements, deferred compensation plan account balances were distributed to all participants in December 2010. As a result, substantially all of the Company’s deferred compensation plan liability listed in the above table and 5.2 million outstanding stock units were settled in December 2010. The Company settled these stock units by issuing shares of common stock, which resulted in taxable earnings to the plan participants. As such, the Company repurchased 1.7 million shares for $48.6 million to satisfy participants’ minimum statutory tax withholdings.

At September 30, 2010, $67.2 million in investments were held in a rabbi trust to fund the deferred compensation plan liability. In December 2010, the Company borrowed $59.3 million against the balance of these investments to partially fund the distribution of the liability portion of the deferred compensation plan. The loan is presented as an offset to the investment balance in the accompanying consolidated balance sheets and as proceeds from financing activities in the accompanying statements of cash flows. As of December 31, 2010, the net investment balance held in the rabbi trust was $9.4 million, which is classified within other current assets.

Other long-term liabilities consist of the following:

	December 31, 2010		September 30, 2010
	(in millions)
Pension liabilities (Note 7)	$	185.1	$	164.2
Reserve for uncertain tax positions (Note 11)	54.5		72.1
Other	148.4		101.2
	$	388.0	$	337.5

The components of accumulated other comprehensive loss are as follows:

	December 31, 2010			September 30, 2010
	(in millions)
Foreign currency translation adjustment	$	6.0		$	(5.5	)
Defined benefit minimum pension liability adjustment, net of tax	(141.3		)	(142.0		)
	$	(135.3	)	$	(147.5	)

Commitments and Contingencies

3 Months Ended

Dec. 31, 2010

Commitments and Contingencies.

Commitments and Contingencies

14. 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 December 31, 2010, the Company was contingently liable in the amount of approximately $189.9 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 reputa ble, financially sound and who carry 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 current 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

3 Months Ended

Dec. 31, 2010

Reportable Segments

Reportable Segments

15. Reportable Segments

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 similar 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 summarized financial information concerning the Company’s reportable segments:

Reportable Segments:	Professional Technical Services			Management Support Services			Corporate			Total
	(in millions)
Three Months Ended December 31, 2010:
Revenue	$	1,575.8		$	360.4		$	—		$	1,936.2
Revenue, net of other direct costs(1)	1,084.8			129.0			—			1,213.8
Gross profit	89.5			15.8			—			105.3
Equity in earnings of joint ventures	2.1			6.0			—			8.1
General and administrative expenses	—			—			23.2			23.2
Operating income	91.6			21.8			(23.2		)	90.2

Gross profit as a % of revenue	5.7		%	4.4		%	—			5.4		%
Gross profit as a % of revenue, net of other direct costs(1)	8.3		%	12.2		%	—			8.7		%

Three Months Ended December 31, 2009:
Revenue	$	1,204.5		$	276.3		$	—		$	1,480.8
Revenue, net of other direct costs(1)	883.8			78.5			—			962.3
Gross profit	71.7			11.3			—			83.0
Equity in earnings of joint ventures	2.3			2.1			—			4.4
General and administrative expenses	—			—			21.9			21.9
Operating income	74.0			13.4			(21.9		)	65.5

Gross profit as a % of revenue	6.0		%	4.1		%	—			5.6		%
Gross profit as a % of revenue, net of other direct costs(1)	8.1		%	14.4		%	—			8.6		%

(1) Non-GAAP measure.

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2010	Feb. 01, 2011
Document and Entity Information
Entity Registrant Name	AECOM TECHNOLOGY CORP
Entity Central Index Key	0000868857
Document Type	10-Q
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		118,727,138
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Statement
Net income	$ 62,083	$ 49,867
Other comprehensive income, net of tax:
Foreign currency translation adjustments	11,538	12,704
Swap valuation		400
Pension adjustments	698	870
Comprehensive income, net of tax	74,319	63,841
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	(5,215)	(4,085)
Comprehensive income attributable to AECOM, net of tax	$ 69,104	$ 59,756