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Reportable Segments (Tables)

6 Months Ended

Mar. 31, 2020

Summarized financial information concerning the Company's reportable segments


							AECOM
Reportable Segments:	Americas			International			Capital		Corporate		Total
	(in millions)
Three Months Ended March 31, 2020:
Revenue	$	2,475.7		$	769.5		$	0.5	$	—	$	3,245.7
Gross profit		135.6			32.7			0.5		—		168.8
Equity in earnings of joint ventures		5.4			3.1			5.0		—		13.5
General and administrative expenses		—			—			(1.8)		(39.2)		(41.0)
Restructuring costs		—			—			—		(31.2)		(31.2)
Operating income (loss)		141.0			35.8			3.7		(70.4)		110.1
Gross profit as a % of revenue		5.5	%		4.2	%		—		—		5.2	%

Three Months Ended March 31, 2019:
Revenue	$	2,576.5		$	834.6		$	1.5	$	—	$	3,412.6
Gross profit		126.7			16.6			1.5		—		144.8
Equity in earnings of joint ventures		1.8			5.1			9.7		—		16.6
General and administrative expenses		—			—			(1.7)		(35.7)		(37.4)
Restructuring costs		—			—			—		(15.9)		(15.9)
Operating income (loss)		128.5			21.7			9.5		(51.6)		108.1
Gross profit as a % of revenue		4.9	%		2.0	%		—		—		4.2	%

Six Months Ended March 31, 2020:
Revenue	$	4,927.7		$	1,552.6		$	1.0	$	—	$	6,481.3
Gross profit		275.1			58.5			1.0		—		334.6
Equity in earnings of joint ventures		11.7			6.0			5.7		—		23.4
General and administrative expenses		—			—			(4.2)		(80.4)		(84.6)
Restructuring costs		—			—			—		(76.1)		(76.1)
Operating income (loss)		286.8			64.5			2.5		(156.5)		197.3
Gross profit as a % of revenue		5.6	%		3.8	%		—		—		5.2	%

Six Months Ended March 31, 2019:
Revenue	$	5,136.9		$	1,626.6		$	5.4	$	—	$	6,768.9
Gross profit		233.9			28.9			5.4		—		268.2
Equity in earnings of joint ventures		8.1			7.9			7.2		—		23.2
General and administrative expenses		—			—			(3.3)		(69.9)		(73.2)
Restructuring costs		—			—			—		(79.2)		(79.2)
Operating income (loss)		242.0			36.8			9.3		(149.1)		139.0
Gross profit as a % of revenue		4.6	%		1.8	%		—		—		4.0	%


Reportable Segments:
Total assets
March 31,2020	$	7,863.5	$	2,442.3	$	207.2	$	1,463.8
September 30, 2019		7,437.3		2,247.1		197.8		718.4

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 1,033,266	$ 777,476
Cash in consolidated joint ventures	101,795	108,163
Total cash and cash equivalents	1,135,061	885,639
Accounts receivable-net	2,888,939	2,869,216
Contract assets	1,766,376	1,581,806
Prepaid expenses and other current assets	726,643	515,593
Current assets held for sale	799,818	1,633,302
Income taxes receivable	61,420	49,089
TOTAL CURRENT ASSETS	7,378,257	7,534,645
PROPERTY AND EQUIPMENT-NET	383,871	405,605
DEFERRED TAX ASSETS-NET	409,566	288,949
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	256,932	256,131
GOODWILL	3,446,939	3,476,813
INTANGIBLE ASSETS-NET	87,591	99,636
OTHER NON-CURRENT ASSETS	164,875	172,134
OPERATING LEASE RIGHT-OF-USE ASSETS	648,642
NON-CURRENT ASSETS HELD FOR SALE	338,673	2,316,995
TOTAL ASSETS	13,115,346	14,550,908
CURRENT LIABILITIES:
Short-term debt	27,220	47,835
Accounts payable	2,184,346	2,410,838
Accrued expenses and other current liabilities	2,204,433	1,878,319
Income taxes payable	31,478	59,541
Contract liabilities	962,999	851,040
Current liabilities held for sale	551,913	1,163,654
Current portion of long-term debt	25,152	50,527
TOTAL CURRENT LIABILITIES	5,987,541	6,461,754
OTHER LONG-TERM LIABILITIES	102,980	266,304
OPERATING LEASE LIABILITIES	738,032
LONG-TERM LIABILITIES HELD FOR SALE	97,062	313,962
DEFERRED TAX LIABILITY-NET	76,117	4,511
PENSION BENEFIT OBLIGATIONS	368,963	387,042
LONG-TERM DEBT	2,079,128	3,217,985
TOTAL LIABILITIES	9,449,823	10,651,558
COMMITMENTS AND CONTINGENCIES (Note 15)
AECOM STOCKHOLDERS' EQUITY:
Common stock-authorized, 300,000,000 shares of $0.01 par value as of March 31, 2020 and September 30, 2019; issued and outstanding 158,908,063 and 157,482,983 shares as of March 31, 2020 and September 30, 2019, respectively	1,589	1,575
Additional paid-in capital	3,960,123	3,953,650
Accumulated other comprehensive loss	(881,574)	(864,197)
Retained earnings	451,364	599,548
TOTAL AECOM STOCKHOLDERS' EQUITY	3,531,502	3,690,576
Noncontrolling interests	134,021	208,774
TOTAL STOCKHOLDERS' EQUITY	3,665,523	3,899,350
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 13,115,346	$ 14,550,908

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Comprehensive Loss
Net (loss) income	$ (76,966)	$ 93,519	$ (23,872)	$ 158,605
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on derivatives, net of tax	144	(4,058)	3,175	(10,356)
Foreign currency translation adjustments	(91,688)	22,754	(43,482)	965
Pension adjustments, net of tax	32,311	(3,427)	22,712	1,903
Other comprehensive (loss) income, net of tax	(59,233)	15,269	(17,595)	(7,488)
Comprehensive (loss) income, net of tax	(136,199)	108,788	(41,467)	151,117
Noncontrolling interests in comprehensive (loss) income of consolidated subsidiaries, net of tax	(8,835)	(15,819)	(21,432)	(29,444)
Comprehensive (loss) income attributable to AECOM, net of tax	$ (145,034)	$ 92,969	$ (62,899)	$ 121,673

Pension Benefit Obligations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
United States
Components of net periodic benefit cost:
Interest cost on projected benefit obligation	$ 1.6	$ 2.1	$ 3.2	$ 4.3
Expected return on plan assets	(1.7)	(2.2)	(3.5)	(4.5)
Amortization of prior service cost	0.1	0.1	0.1	0.1
Amortization of net loss	1.2	0.9	2.4	1.9
Settlement loss recognized	0.5	0.1	0.5	0.1
Net periodic benefit cost	1.7	1.0	2.7	1.9
Change in benefit obligation:
Employer contributions			4.5
Expected remaining scheduled annual employer contributions for the current fiscal year	4.2		4.2
Foreign Pension Plan, Defined Benefit
Components of net periodic benefit cost:
Service costs	0.1	0.1	0.3	0.2
Interest cost on projected benefit obligation	5.7	7.7	11.3	15.1
Expected return on plan assets	(9.4)	(9.8)	(18.8)	(19.3)
Amortization of prior service cost		(0.1)		(0.1)
Amortization of net loss	2.2	1.1	4.3	2.1
Settlement loss recognized	0.2		0.2	0.1
Net periodic benefit cost	(1.2)	$ (1.0)	(2.7)	$ (1.9)
Change in benefit obligation:
Employer contributions			14.0
Expected remaining scheduled annual employer contributions for the current fiscal year	$ 13.7		$ 13.7

Commitments and Contingencies (Details) - USD ($) $ in Millions			1 Months Ended		6 Months Ended	72 Months Ended
	Jan. 31, 2020	Dec. 06, 2019	Dec. 31, 2019	Dec. 31, 2014	Mar. 31, 2020	Sep. 30, 2019	Apr. 30, 2019	Mar. 31, 2019
Commitments and Contingencies
Percentage of claim recoveries due to seller	10.00%
Percentage of claim recoveries due to purchaser	90.00%
Department of Energy Deactivation, Demolition, And Removal Project \| Department of Energy \| Maximum
Commitments and Contingencies
Cost-reimbursement at risk					$ 106.0
Department of Energy Deactivation, Demolition, And Removal Project \| AECOM E&C and DOE \| Minimum
Commitments and Contingencies
Cost-reimbursement at risk					106.0
Department of Energy Deactivation, Demolition, And Removal Project \| AECOM E&C and DOE \| Maximum
Commitments and Contingencies
Cost-reimbursement at risk					146.0
Department of Energy Deactivation, Demolition, And Removal Project \| AECOM E&C
Commitments and Contingencies
Claim to DOE, including additional fees		$ 60.4		$ 103.0
Department of Energy Deactivation, Demolition, And Removal Project \| AECOM E&C \| Minimum
Commitments and Contingencies
Cost-reimbursement at risk					146.0
Claim to DOE, including additional fees						$ 148.5
Department of Energy Deactivation, Demolition, And Removal Project \| AECOM E&C \| Maximum
Commitments and Contingencies
Claim to DOE, including additional fees						$ 329.4
Refinery Turnaround Project
Commitments and Contingencies
Damages paid, value			$ 93.0
Refinery Turnaround Project \| AECOM E&C
Commitments and Contingencies
Damages claimed, value					144.0
Recoverable from refinery owner					90.0
Loss contingency, receivable amount							$ 132.0	$ 79.0
AECOM-Canyon Equity Fund, L.P
Commitments and Contingencies
Capital commitments					$ 35.0
Term of capital commitments					10 years
Standby letter of credit
Commitments and Contingencies
Contingency liability					$ 471.2
Surety Bond
Commitments and Contingencies
Surety bonds issued					$ 4,800.0

Basis of Presentation

6 Months Ended

Mar. 31, 2020

Basis of Presentation

Basis of Presentation

1. Basis of Presentation

The accompanying consolidated financial statements of AECOM (the Company) are unaudited and, in the opinion of management, include all adjustments, including all normal recurring items necessary for a fair statement of the Company’s financial position and results of operations for the periods presented. All intercompany balances and transactions are eliminated in consolidation.

The consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended September 30, 2019 (the Annual Report). The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The consolidated financial statements included in this report have been prepared consistently with the accounting policies described in the Annual Report, except as noted, and should be read together with the Annual Report.

The results of operations for the three and six months ended March 31, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2020.

On January 31, 2020, the Company completed the sale of its Management Services business to an affiliate of American Securities LLC and Lindsay Goldberg LLC for total consideration of approximately $2.4 billion. Additionally, as discussed in more detail in Note 3, the Company concluded that its self-perform at-risk construction businesses met the criteria for held for sale beginning in the first quarter of fiscal year 2020. Collectively, the Management Services business and the self-perform at-risk construction businesses met the criteria for discontinued operation classification. As a result, the Management Services business and the self-perform at-risk construction businesses are presented in the consolidated statements of operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of these businesses are presented in the consolidated balance sheets as assets and liabilities held for sale.

The Company reports its annual results of operations based on 52 or 53-week periods ending on the Friday nearest September 30. The Company reports its quarterly results of operations based on periods ending on the Friday nearest December 31, March 31, and June 30. For clarity of presentation, all periods are presented as if the periods ended on September 30, December 31, March 31, and June 30.

Leases - Additional balance sheet information (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Assets:
Operating lease assets	$ 648,642
Balance Sheet classification of operating lease assets	us-gaap:OperatingLeaseRightOfUseAsset
Finance lease assets	$ 52,500
Balance Sheet classification of finance lease assets	us-gaap:PropertyPlantAndEquipmentNet
Total lease assets	$ 701,100
Current:
Operating lease liabilities	$ 168,700
Balance Sheet classification of operating lease liabilities	us-gaap:AccruedLiabilitiesCurrent
Finance lease liabilities	$ 19,500
Balance Sheet classification of finance lease liabilities	us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent
Total current lease liabilities	$ 188,200
Non-current
Operating lease liabilities	$ 738,032
Balance Sheet classification of operating lease liabilities	us-gaap:OperatingLeaseLiabilityNoncurrent
Finance lease liabilities	$ 41,600
Balance Sheet classification of finance lease liabilities	us-gaap:LongTermDebtAndCapitalLeaseObligations
Total non-current lease liabilities	$ 779,600
Weighted average remaining lease term (in years):
Operating leases	7 years 6 months
Finance leases	3 years 1 month 6 days
Weighted average discount rates:
Operating leases	4.60%
Finance leases	4.30%

Joint Ventures and Variable Interest Entities - Consolidated (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020 USD ($) employee	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($) employee	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)
Financial Information
Minimum number of employees \| employee	0		0
Current assets	$ 7,378,257		$ 7,378,257			$ 7,534,645
TOTAL ASSETS	13,115,346		13,115,346			14,550,908
Current liabilities	5,987,541		5,987,541			6,461,754
TOTAL LIABILITIES	9,449,823		9,449,823			10,651,558
Total AECOM equity	3,531,502		3,531,502			3,690,576
Noncontrolling interests	134,021		134,021			208,774
TOTAL STOCKHOLDERS' EQUITY	3,665,523	$ 4,394,874	3,665,523	$ 4,394,874	$ 3,859,404	3,899,350	$ 4,250,429	$ 4,278,374
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	13,115,346		13,115,346			14,550,908
Joint ventures summarized financial information
Revenue	3,245,737	$ 3,412,605	6,481,347	6,768,943
Consolidated Joint Ventures
Financial Information
Current assets	558,900		558,900			581,300
Non-current assets	77,100		77,100			75,400
TOTAL ASSETS	636,000		636,000			656,700
Current liabilities	416,500		416,500			432,800
Non-current liabilities	1,500		1,500
TOTAL LIABILITIES	418,000		418,000			432,800
Total AECOM equity	129,600		129,600			137,900
Noncontrolling interests	88,400		88,400			86,000
TOTAL STOCKHOLDERS' EQUITY	218,000		218,000			223,900
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 636,000		636,000			$ 656,700
Joint ventures summarized financial information
Revenue			$ 436,300	$ 584,700

Derivative Financial Instruments and Fair Value Measurements

6 Months Ended

Mar. 31, 2020

Derivative Financial Instruments and Fair Value Measurements

Derivative Financial Instruments and Fair Value Measurements

8. Derivative Financial Instruments and Fair Value Measurements

The Company uses interest rate derivative contracts to hedge interest rate exposures on the Company’s variable rate debt. The Company enters into foreign currency derivative contracts with financial institutions to reduce the risk that its cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. The Company’s hedging program is not designated for trading or speculative purposes.

The Company recognizes derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value. The Company records changes in the fair value (i.e., gains or losses) of the derivatives that have been designated as accounting hedges in the accompanying consolidated statements of operations as cost of revenue, interest expense or to accumulated other comprehensive loss in the accompanying consolidated balance sheets.

Cash Flow Hedges

The Company uses interest rate swap agreements designated as cash flow hedges to fix the variable interest rates on portions of the Company’s debt. The Company initially reports any gain on the effective portion of a cash flow hedge as a component of accumulated other comprehensive loss. Depending on the type of cash flow hedge, the gain is subsequently reclassified to interest expense when the interest expense on the variable rate debt is recognized. If the hedged transaction becomes probable of not occurring, any gain or loss related to interest rate swap agreements would be recognized in other income.

The notional principal in U.S. dollar (USD), Canadian dollar (CAD), and Australian dollar (AUD), fixed rates and related expiration dates of the Company’s outstanding interest rate swap agreements were as follows:


	March 31, 2020
Notional Amount	Notional Amount	Fixed	Expiration
Currency	(in millions)	Rate	Date
USD	200.0	2.60%	February 2023


	September 30, 2019
Notional Amount	Notional Amount	Fixed	Expiration
Currency	(in millions)	Rate	Date
AUD	200.0	2.19%	February 2021
CAD	400.0	2.49%	September 2022
USD	200.0	2.60%	February 2023

Other Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts which are not designated as accounting hedges to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. Gains and losses on these contracts were not material for the six months ended March 31, 2020 and 2019.

Fair Value Measurements

The Company’s non-pension financial assets and liabilities recorded at fair values relate to derivative instruments and were not material at March 31, 2020 or September 30, 2019.

See Note 14 for accumulated balances and reporting period activities of derivatives related to reclassifications out of accumulated other comprehensive loss for the six months ended March 31, 2020 and 2019. Amounts recognized in accumulated other comprehensive loss from the Company’s foreign currency options were immaterial for all periods presented. Amounts reclassified from accumulated other comprehensive loss into income from the foreign currency options were immaterial for all periods presented. Additionally, there were no material losses recognized in income due to amounts excluded from effectiveness testing from the Company’s interest rate swap agreements.

Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
Earnings Per Share (Details) - shares shares in Thousands	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share
Denominator for basic earnings per share (in shares)	158,550	156,621	157,941	156,519
Potential common shares (in shares)	2,100	1,800	2,800	2,500
Denominator for diluted earnings per share (in shares)	160,718	158,416	160,687	159,010

Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Sep. 30, 2019	Oct. 17, 2014
Debt
Total debt	$ 2,153,100	$ 3,352,500
Less: Current portion of debt and short-term borrowings	(52,400)	(98,300)
Less: Unamortized debt issuance costs	(21,600)	(36,200)
Long-term debt	2,079,128	3,217,985
2014 Credit Agreement
Debt
Total debt		1,182,200
2014 Senior Notes
Debt
Total debt	800,000	800,000
2017 Senior Notes
Debt
Total debt	1,000,000	1,000,000
URS Senior Notes
Debt
Total debt	248,100	248,100	$ 1,000,000
Other Debt
Debt
Total debt	$ 105,000	$ 122,200

Leases - Total remaining lease payments under the Company's operating lease (Details) $ in Millions	Mar. 31, 2020 USD ($)
Leases
2020 (six months remaining)	$ 108.2
2021	189.0
2022	159.0
2023	125.8
2024	102.0
Thereafter	397.9
Total lease payments	1,081.9
Less: Amounts representing interest	(175.2)
Total lease liabilities	$ 906.7

Discontinued Operations, Goodwill and Intangible Assets (Tables)

6 Months Ended

Mar. 31, 2020

Discontinued Operations, Goodwill and Intangible Assets

Summarized results of the discontinued operation, included in the Company's results of operations

The following table represents summarized balance sheet information of assets and liabilities held for sale (in millions):


	March 31,		September 30,
	2020		2019

Cash and cash equivalents	$	131.3	$	194.7
Receivables and contract assets		646.5		1,326.6
Other		22.0		112.0
Current assets held for sale	$	799.8	$	1,633.3

Property and equipment, net	$	113.0	$	153.8
Goodwill		—		1,798.5
Other		225.7		364.7
Non-current assets held for sale	$	338.7	$	2,317.0

Accounts payable and accrued expenses	$	448.7	$	1,056.0
Contract liabilities		78.6		88.9
Other		24.6		18.8
Current liabilities held for sale	$	551.9	$	1,163.7

Long term liabilities held for sale	$	97.1	$	314.0

The following table represents summarized income statement information of discontinued operations (in millions):


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019

Revenue	$	811.5	$	1,627.4	$	2,314.3	$	3,308.6
Cost of revenue		882.5		1,576.9		2,356.0		3,210.9
Gross (loss) profit		(71.0)		50.5		(41.7)		97.7
Equity in earnings of joint ventures		(21.7)		9.4		(16.9)		15.3
Gain on disposal activities		147.0		—		147.0		—
Transaction costs		(41.4)		—		(41.4)		—
Impairment of goodwill and intangibles assets		(89.3)		—		(89.3)		—
(Loss) income from operations		(76.4)		59.9		(42.3)		113.0
Other income		0.4		0.4		1.8		1.2
Interest expense		(25.9)		(16.5)		(38.7)		(33.3)
(Loss) income before taxes		(101.9)		43.8		(79.2)		80.9
Income tax expense		28.8		8.6		33.4		17.5
Net (loss) income from discontinued operations	$	(130.7)	$	35.2	$	(112.6)	$	63.4

The significant components included in the Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions):


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019

Depreciation and amortization:
Property and equipment	$	—	$	6.0	$	4.6	$	13.7
Intangible assets and capitalized debt issuance costs	$	18.7	$	16.5	$	31.5	$	32.9
Payments for capital expenditures	$	(6.0)	$	(5.0)	$	(14.2)	$	(9.2)

Schedule of carrying value of goodwill by reportable segment


			Foreign
	September 30,		Exchange		March 31,
	2019		Impact		2020
	(in millions)
Americas	$	2,623.0	$	(9.9)	$	2,613.1
International		853.8		(20.0)		833.8
Total	$	3,476.8	$	(29.9)	$	3,446.9

Schedule of finite-lived intangible assets by major class


	March 31, 2020						September 30, 2019
	Gross		Accumulated		Intangible		Gross		Accumulated		Intangible		Amortization
	Amount		Amortization		Assets, Net		Amount		Amortization		Assets, Net		Period
	(in millions)												(years)
Backlog and customer relationships	$	661.7	$	(574.1)	$	87.6	$	661.4	$	(561.8)	$	99.6	1	-	11

Schedule of estimated future amortization expense of intangible assets


Fiscal Year	(in millions)
2020 (six months remaining)	$	11.3
2021		20.1
2022		19.3
2023		18.5
2024		17.4
Thereafter		1.0
Total	$	87.6

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
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+ Details

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019	Oct. 01, 2018
Revenue Recognition
Retained earnings	$ 451,364		$ 451,364		$ 599,548
Revenue	$ 3,245,737	$ 3,412,605	6,481,347	$ 6,768,943
Subcontractor and other direct costs			$ 3,400,000	$ 3,700,000
Accounting Standards Update 2014-09
Revenue Recognition
Retained earnings						$ (7,000)

Leases - Components of lease expenses (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Oct. 01, 2019	Sep. 30, 2019
New Accounting Pronouncements and Changes in Accounting
Retained earnings	$ 451,364	$ 451,364		$ 599,548
Components of lease expenses
Operating lease cost	48,800	95,400
Finance lease cost
Amortization of right-of-use assets	5,100	9,700
Interest on lease liabilities	500	1,000
Variable lease cost	8,800	18,300
Short-term lease cost	2,400	5,800
Total lease cost	$ 65,600	$ 130,200
Accounting Standards Update 2016-02
New Accounting Pronouncements and Changes in Accounting
Retained earnings			$ (87,800)

Reportable Segments

6 Months Ended

Mar. 31, 2020

Reportable Segments

Reportable Segments

16. Reportable Segments

During the first quarter of fiscal 2020, the Company reorganized its operating and reporting structure to better align with its ongoing professional services business. This reorganization better reflects the continuing operations of the Company after the sale of its former Management Services reportable segment and planned disposal of its self-perform at-risk construction businesses discussed in Note 3. The businesses that comprised the Company’s former Management Services reportable segment and the civil infrastructure, power and oil and gas construction businesses in the former Construction Services reportable segment were classified as discontinued operations. The former Design and Consulting Services reportable segment and construction management business in the former Construction Services reportable segment were reformed around geographic regions. The Americas segment provides planning, consulting, architectural and engineering design services, and construction management services to commercial and government clients in the United States, Canada, and Latin America, while the International segment provides similar professional services to commercial and government clients in Europe, the Middle East, Africa, and the Asia-Pacific regions.

The Company’s AECOM Capital (ACAP) segment primarily invests in and develops real estate projects. These reportable segments are organized by the differing specialized needs of the respective clients, and how the Company manages its business. The Company has aggregated various operating segments into its reportable segments 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. The change in reportable segments was applied to all periods presented.

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


							AECOM
Reportable Segments:	Americas			International			Capital		Corporate		Total
	(in millions)
Three Months Ended March 31, 2020:
Revenue	$	2,475.7		$	769.5		$	0.5	$	—	$	3,245.7
Gross profit		135.6			32.7			0.5		—		168.8
Equity in earnings of joint ventures		5.4			3.1			5.0		—		13.5
General and administrative expenses		—			—			(1.8)		(39.2)		(41.0)
Restructuring costs		—			—			—		(31.2)		(31.2)
Operating income (loss)		141.0			35.8			3.7		(70.4)		110.1
Gross profit as a % of revenue		5.5	%		4.2	%		—		—		5.2	%

Three Months Ended March 31, 2019:
Revenue	$	2,576.5		$	834.6		$	1.5	$	—	$	3,412.6
Gross profit		126.7			16.6			1.5		—		144.8
Equity in earnings of joint ventures		1.8			5.1			9.7		—		16.6
General and administrative expenses		—			—			(1.7)		(35.7)		(37.4)
Restructuring costs		—			—			—		(15.9)		(15.9)
Operating income (loss)		128.5			21.7			9.5		(51.6)		108.1
Gross profit as a % of revenue		4.9	%		2.0	%		—		—		4.2	%

Six Months Ended March 31, 2020:
Revenue	$	4,927.7		$	1,552.6		$	1.0	$	—	$	6,481.3
Gross profit		275.1			58.5			1.0		—		334.6
Equity in earnings of joint ventures		11.7			6.0			5.7		—		23.4
General and administrative expenses		—			—			(4.2)		(80.4)		(84.6)
Restructuring costs		—			—			—		(76.1)		(76.1)
Operating income (loss)		286.8			64.5			2.5		(156.5)		197.3
Gross profit as a % of revenue		5.6	%		3.8	%		—		—		5.2	%

Six Months Ended March 31, 2019:
Revenue	$	5,136.9		$	1,626.6		$	5.4	$	—	$	6,768.9
Gross profit		233.9			28.9			5.4		—		268.2
Equity in earnings of joint ventures		8.1			7.9			7.2		—		23.2
General and administrative expenses		—			—			(3.3)		(69.9)		(73.2)
Restructuring costs		—			—			—		(79.2)		(79.2)
Operating income (loss)		242.0			36.8			9.3		(149.1)		139.0
Gross profit as a % of revenue		4.6	%		1.8	%		—		—		4.0	%


Reportable Segments:
Total assets
March 31,2020	$	7,863.5	$	2,442.3	$	207.2	$	1,463.8
September 30, 2019		7,437.3		2,247.1		197.8		718.4

Joint Ventures and Variable Interest Entities - Unconsolidated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Financial Information
Current assets	$ 7,378,257		$ 7,378,257			$ 7,534,645
TOTAL ASSETS	13,115,346		13,115,346			14,550,908
Current liabilities	5,987,541		5,987,541			6,461,754
TOTAL LIABILITIES	9,449,823		9,449,823			10,651,558
TOTAL STOCKHOLDERS EQUITY	3,665,523	$ 4,394,874	3,665,523	$ 4,394,874	$ 3,859,404	3,899,350	$ 4,250,429	$ 4,278,374
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	13,115,346		13,115,346			14,550,908
AECOM's investment in joint ventures	256,932		256,932			256,131
Joint ventures summarized financial information
Revenue	3,245,737	3,412,605	6,481,347	6,768,943
Cost of revenue	3,076,924	3,267,768	6,146,734	6,500,710
Gross profit	168,813	144,837	334,613	268,233
Net income	(76,966)	$ 93,519	(23,872)	158,605
Unconsolidated Joint Ventures
Financial Information
Current assets	1,153,100		1,153,100			1,133,500
Non-current assets	1,049,800		1,049,800			904,500
TOTAL ASSETS	2,202,900		2,202,900			2,038,000
Current liabilities	1,069,800		1,069,800			1,115,500
Non-current liabilities	107,200		107,200			182,300
TOTAL LIABILITIES	1,177,000		1,177,000			1,297,800
TOTAL STOCKHOLDERS EQUITY	1,025,900		1,025,900			740,200
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,202,900		2,202,900			2,038,000
AECOM's investment in joint ventures	$ 256,900		256,900			$ 256,100
Joint ventures summarized financial information
Revenue			1,602,200	1,574,400
Cost of revenue			1,579,400	1,522,700
Gross profit			22,800	51,700
Net income			$ 21,900	$ 51,400

Debt - 2014 Credit Agreement (Details) $ in Millions, $ in Millions								6 Months Ended
	May 01, 2020 USD ($)	Oct. 01, 2019	Jul. 01, 2018	Mar. 13, 2018 USD ($)	Mar. 31, 2017	Sep. 29, 2016 USD ($)	Oct. 17, 2014 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2019 USD ($)	Mar. 13, 2018 AUD ($)	Mar. 13, 2018 CAD ($)
Term loan A
Debt agreements
Borrowing capacity						$ 185,000,000.0
Revolving credit facility \| Euro currency rate \| Subsequent Event
Debt agreements
Interest rate	0.75%
2014 Credit Agreement \| Subsequent Event
Debt agreements
Borrowing capacity	$ 400,000,000
Maximum leverage ratio	4.00
Subject to increase leverage ratio	4.50
2014 Credit Agreement \| Minimum \| Base Rate
Debt agreements
Interest rate, basis spread (as a percent)			0.25%
2014 Credit Agreement \| Minimum \| Euro currency rate
Debt agreements
Interest rate, basis spread (as a percent)			1.25%
2014 Credit Agreement \| Maximum \| Base Rate
Debt agreements
Interest rate, basis spread (as a percent)			1.00%
2014 Credit Agreement \| Maximum \| Euro currency rate
Debt agreements
Interest rate, basis spread (as a percent)			2.00%
2014 Credit Agreement \| Term loan A
Debt agreements
Borrowing capacity				$ 510,000,000						$ 250	$ 500
2014 Credit Agreement \| Term loan A \| Base Rate \| USD
Debt agreements
Interest rate, basis spread (as a percent)				0.50%
2014 Credit Agreement \| Term loan A \| Euro currency rate
Debt agreements
Interest rate, basis spread (as a percent)				1.50%
2014 Credit Agreement \| Term loan B
Debt agreements
Borrowing capacity				$ 600,000,000
2014 Credit Agreement \| Term loan B \| CAD
Debt agreements
Borrowing capacity				$ 500,000,000
2014 Credit Agreement \| Term loan B \| Base Rate
Debt agreements
Interest rate, basis spread (as a percent)				0.75%
2014 Credit Agreement \| Term loan B \| Euro currency rate
Debt agreements
Interest rate, basis spread (as a percent)				1.75%
2014 Credit Agreement \| Revolving credit facility
Debt agreements
Increase in borrowing capacity				$ 1,350,000,000			$ 1,050,000,000.00
Outstanding letters of credit								$ 22,400,000	$ 22,800,000
Remaining borrowing capacity under credit facility								$ 1,327,600,000	$ 1,327,200,000
2014 Credit Agreement \| Revolving credit facility \| Base Rate
Debt agreements
Interest rate, basis spread (as a percent)				0.75%
2014 Credit Agreement \| Revolving credit facility \| Euro currency rate
Debt agreements
Interest rate, basis spread (as a percent)				1.75%
2014 Credit Agreement \| Line of credit
Debt agreements
Borrowing capacity						$ 500,000,000
Consolidated leverage ratio		4.0		4.5	4.75	5.00		3.1
Consolidated interest coverage ratio								4.9

Debt - 2014 Senior Notes (Details) - USD ($)	Mar. 16, 2018	Oct. 06, 2014	Mar. 31, 2020
The 2022 Notes
Debt
Redemption price equal to principal amount (in percent)	104.313%
Prepayment premium redemption	$ 34,500,000
2014 Senior Notes \| The 2022 Notes
Debt
Principal amount		$ 800,000,000
Interest rate (as a percent)		5.75%
2014 Senior Notes \| The 2024 Notes
Debt
Principal amount		$ 800,000,000
Interest rate (as a percent)		5.875%
Fair value of debt instrument			$ 736,000,000.0
2014 Senior Notes \| The 2024 Notes \| Prior to July 15 2024
Debt
Redemption price equal to principal amount (in percent)		100.00%
2014 Senior Notes \| The 2024 Notes \| On or after July 15, 2024
Debt
Redemption price equal to principal amount (in percent)		100.00%

Revenue Recognition - Performance obligations (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue, remaining performance obligations
Performance obligation	$ 16,500.0
Revenue recognized on contract liabilities	$ 514.6	$ 403.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01
Revenue, remaining performance obligations
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Deprecated 2018-01-31)	12 months
Percentage of remaining performance obligation expected to be recognized in period	60.00%

Derivative Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($)
Designated as Hedging Instrument \| Cash Flow Hedging \| Interest rate swap agreements
Derivative financial instruments
Losses Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion)	$ 0

Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Accumulated balances
Balance at the beginning of the period	$ (822,700)	$ (726,100)	$ (864,197)	$ (703,300)
Other comprehensive income (loss) before reclassification	(89,400)	12,900	(51,600)	(11,900)
Amounts reclassified from accumulated other comprehensive (loss) income	30,500	2,200	34,200	4,200
Balance at the end of the period	(881,574)	(711,000)	(881,574)	(711,000)
Pension Related Adjustments
Accumulated balances
Balance at the beginning of the period	(312,300)	(197,000)	(302,700)	(202,300)
Other comprehensive income (loss) before reclassification	8,700	(5,000)	(3,700)	(1,200)
Amounts reclassified from accumulated other comprehensive (loss) income	23,600	1,600	26,400	3,100
Balance at the end of the period	(280,000)	(200,400)	(280,000)	(200,400)
Foreign Currency Translation Adjustments
Accumulated balances
Balance at the beginning of the period	(500,700)	(524,000)	(548,700)	(502,200)
Other comprehensive income (loss) before reclassification	(91,400)	22,500	(43,400)	700
Balance at the end of the period	(592,100)	(501,500)	(592,100)	(501,500)
Gain(/Loss) on Derivative Instruments
Accumulated balances
Balance at the beginning of the period	(9,700)	(5,100)	(12,800)	1,200
Other comprehensive income (loss) before reclassification	(6,700)	(4,600)	(4,500)	(11,400)
Amounts reclassified from accumulated other comprehensive (loss) income	6,900	600	7,800	1,100
Balance at the end of the period	$ (9,500)	$ (9,100)	$ (9,500)	$ (9,100)

Earnings Per Share

6 Months Ended

Mar. 31, 2020

Earnings Per Share

Earnings Per Share

11. Earnings Per Share

Basic earnings per share (EPS) excludes dilution and is computed by dividing net income attributable to AECOM 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

shares for the period. The Company includes as potential common shares the weighted average dilutive effects of equity awards using the treasury stock method. For the three and six months ended March 31, 2020 and 2019, equity awards excluded from the calculation of potential common shares were not significant .

The following table sets forth a reconciliation of the denominators for basic and diluted earnings per share:


	Three Months Ended		Six Months Ended
	March 31,	March 31,	March 31,	March 31,
	2020	2019	2020	2019
	(in millions)
Denominator for basic earnings per share	158.6	156.6	157.9	156.5
Potential common shares	2.1	1.8	2.8	2.5
Denominator for diluted earnings per share	160.7	158.4	160.7	159.0

Revenue Recognition - Accounts receivable, net (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2020	Sep. 30, 2019
Billed	$ 2,353,700	$ 2,284,800
Contract retentions	602,200	641,500
Total accounts receivable-gross	2,955,900	2,926,300
Allowance for doubtful accounts	(67,000)	(57,100)
Total accounts receivable-net	$ 2,888,939	$ 2,869,216
Additional disclosures
Unbilled receivables are expected to be billed and collected (in months)	12 months	12 months
Significant claims recorded in contract assets and other non-current assets	$ 110,000	$ 110,000
Trade receivables sold, outstanding	$ 97,000	$ 91,900
Other than U.S government outstanding receivables
Additional disclosures
Number of clients	0	0
Outstanding receivables (as a percent)	10.00%	10.00%

Pension Benefit Obligations

6 Months Ended

Mar. 31, 2020

Pension Benefit Obligations

Pension Benefit Obligations

6. Pension Benefit Obligations

In the U.S., the Company sponsors various qualified defined benefit pension plans. Benefits under these plans generally are based on the employee’s years of creditable service and compensation; however, all U.S. defined benefit plans are closed to new participants and have frozen accruals.

The Company also sponsors various non-qualified plans in the U.S.; all of these plans are frozen. 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.

The components of net periodic benefit cost other than the service cost component are included in other income in the consolidated statement of operations. The following table details the components of net periodic benefit cost for the Company’s pension plans for the three and six months ended March 31, 2020 and 2019:


	Three Months Ended								Six Months Ended
	March 31, 2020				March 31, 2019				March 31, 2020				March 31, 2019
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
	(in millions)
Components of net periodic benefit cost:
Service costs	$	—	$	0.1	$	—	$	0.1	$	—	$	0.3	$	—	$	0.2
Interest cost on projected benefit obligation		1.6		5.7		2.1		7.7		3.2		11.3		4.3		15.1
Expected return on plan assets		(1.7)		(9.4)		(2.2)		(9.8)		(3.5)		(18.8)		(4.5)		(19.3)
Amortization of prior service cost		0.1		—		0.1		(0.1)		0.1		—		0.1		(0.1)
Amortization of net loss		1.2		2.2		0.9		1.1		2.4		4.3		1.9		2.1
Settlement loss recognized		0.5		0.2		0.1		—		0.5		0.2		0.1		0.1
Net periodic benefit cost	$	1.7	$	(1.2)	$	1.0	$	(1.0)	$	2.7	$	(2.7)	$	1.9	$	(1.9)

The total amounts of employer contributions paid for the six months ended March 31, 2020 were $4.5 million for U.S. plans and $14.0 million for non-U.S. plans. The expected remaining scheduled annual employer contributions for the fiscal year ending September 30, 2020 are $4.2 million for U.S. plans and $13.7 million for non-U.S. plans.

Reclassifications out of Accumulated Other Comprehensive Loss

6 Months Ended

Mar. 31, 2020

Reclassifications out of Accumulated Other Comprehensive Loss

Reclassifications out of Accumulated Other Comprehensive Loss

14. Reclassifications out of Accumulated Other Comprehensive Loss

The accumulated balances and reporting period activities for the three and six months ended March 31, 2020 and 2019 related to reclassifications out of accumulated other comprehensive loss are summarized as follows (in millions):


	Foreign		Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at December 31, 2019	$	(312.3)	$	(500.7)	$	(9.7)	$	(822.7)
Other comprehensive (loss) income before reclassification		8.7		(91.4)		(6.7)		(89.4)
Amounts reclassified from accumulated other comprehensive (loss) income		23.6		—		6.9		30.5
Balances at March 31, 2020	$	(280.0)	$	(592.1)	$	(9.5)	$	(881.6)


	Foreign		Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at December 31, 2018	$	(197.0)	$	(524.0)	$	(5.1)	$	(726.1)
Other comprehensive (loss) income before reclassification		(5.0)		22.5		(4.6)		12.9
Amounts reclassified from accumulated other comprehensive (loss) income		1.6		—		0.6		2.2
Balances at March 31, 2019	$	(200.4)	$	(501.5)	$	(9.1)	$	(711.0)


			Foreign				Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at September 30, 2019	$	(302.7)	$	(548.7)	$	(12.8)	$	(864.2)
Other comprehensive (loss) income before reclassification		(3.7)		(43.4)		(4.5)		(51.6)
Amounts reclassified from accumulated other comprehensive (loss) income		26.4		—		7.8		34.2
Balances at March 31, 2020	$	(280.0)	$	(592.1)	$	(9.5)	$	(881.6)


			Foreign				Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at September 30, 2018	$	(202.3)	$	(502.2)	$	1.2	$	(703.3)
Other comprehensive income (loss) before reclassification		(1.2)		0.7		(11.4)		(11.9)
Amounts reclassified from accumulated other comprehensive income (loss)		3.1		—		1.1		4.2
Balances at March 31, 2019	$	(200.4)	$	(501.5)	$	(9.1)	$	(711.0)

Debt

6 Months Ended

Mar. 31, 2020

Debt

Debt

7. Debt

Debt consisted of the following:


	March 31,		September 30,
	2020		2019
	(in millions)
2014 Credit Agreement	$	—	$	1,182.2
2014 Senior Notes		800.0		800.0
2017 Senior Notes		1,000.0		1,000.0
URS Senior Notes		248.1		248.1
Other debt		105.0		122.2
Total debt		2,153.1		3,352.5
Less: Current portion of debt and short-term borrowings		(52.4)		(98.3)
Less: Unamortized debt issuance costs		(21.6)		(36.2)
Long-term debt	$	2,079.1	$	3,218.0

The following table presents, in millions, scheduled maturities of the Company’s debt as of March 31, 2020:


Fiscal Year
2020 (six months remaining)	$	39.8
2021		25.2
2022		269.9
2023		13.2
2024		4.7
Thereafter		1,800.3
Total	$	2,153.1

2014 Credit Agreement

The Company entered into a credit agreement (Credit Agreement) on October 17, 2014, which, as amended to date, consists of (i) a term loan A facility that includes a $510 million (US) term loan A facility with a term expiring on March 13, 2021 and a $500 million Canadian dollar (CAD) term loan A facility and a $250 million Australian dollar (AUD) term loan A facility, each with terms expiring on March 13, 2023; (ii) a $600 million term loan B facility with a term expiring on March 13, 2025; and (iii) a revolving credit facility in an aggregate principal amount of $1.35 billion with a term expiring on March 13, 2023. Some of subsidiaries of the Company (Guarantors) have guaranteed the obligations of the borrowers under the Credit Agreement. The borrowers’ obligations under the Credit Agreement are

secured by a lien on substantially all of the assets of the Company and the Guarantors pursuant to a security and pledge agreement (Security Agreement). The collateral under the Security Agreement is subject to release upon fulfillment of conditions specified in the Credit Agreement and Security Agreement.

The Credit Agreement contains covenants that limit the ability of the Company and the ability of some of its subsidiaries to, among other things: (i) create, incur, assume, or suffer to exist liens; (ii) incur or guarantee indebtedness; (iii) pay dividends or repurchase stock; (iv) enter into transactions with affiliates; (v) consummate asset sales, acquisitions or mergers; (vi) enter into various types of burdensome agreements; or (vii) make investments.

On July 1, 2015, the Credit Agreement was amended to revise the definition of “Consolidated EBITDA” to increase the allowance for acquisition and integration expenses related to the Company’s acquisition of the URS Corporation (URS) in October 2014.

On December 22, 2015, the Credit Agreement was amended to further revise the definition of “Consolidated EBITDA” by further increasing the allowance for acquisition and integration expenses related to the acquisition of URS and to allow for an internal corporate restructuring primarily involving the Company’s international subsidiaries.

On September 29, 2016, the Credit Agreement and the Security Agreement were amended to (1) lower the applicable interest rate margins for the term loan A and the revolving credit facilities, and lower the applicable letter of credit fees and commitment fees to the revised consolidated leverage levels; (2) extend the term of the term loan A and the revolving credit facility to September 29, 2021; (3) add a new delayed draw term loan A facility tranche in the amount of $185.0 million; (4) replace the then existing $500 million performance letter of credit facility with a $500 million basket to enter into secured letters of credit outside the Credit Agreement; and (5) revise covenants, including the Maximum Consolidated Leverage Ratio so that the step down from a 5.00 to a 4.75 leverage ratio is effective as of March 31, 2017 as well as the investment basket for the Company’s AECOM Capital business.

On March 31, 2017, the Credit Agreement was amended to (1) expand the ability of restricted subsidiaries to borrow under “Incremental Term Loans;” (2) revise the definition of “Working Capital” as used in “Excess Cash Flow;” (3) revise the definitions for “Consolidated EBITDA” and “Consolidated Funded Indebtedness” to reflect the expected gain and debt repayment of an AECOM Capital disposition, which disposition was completed on April 28, 2017; and (4) amend provisions relating to the Company’s ability to undertake internal restructuring steps to accommodate changes in tax laws.

On March 13, 2018, the Credit Agreement was amended to (1) refinance the existing term loan A facility to include a $510 million (US) term loan A facility with a term expiring on March 13, 2021 and a $500 million CAD term loan A facility and a $250 million AUD term loan A facility each with terms expiring on March 13, 2023; (2) issue a new $600 million term loan B facility to institutional investors with a term expiring on March 13, 2025; (3) increase the capacity of the Company’s revolving credit facility from $1.05 billion to $1.35 billion and extend its term until March 13, 2023; (4) reduce the Company’s interest rate borrowing costs as follows: (a) the term loan B facility, at the Company’s election, Base Rate (as defined in the Credit Agreement) plus 0.75% or Eurocurrency Rate (as defined in the Credit Agreement) plus 1.75%, (b) the (US) term loan A facility, at the Company’s election, Base Rate plus 0.50% or Eurocurrency Rate plus 1.50%, and (c) the Canadian (CAD) term loan A facility, the Australian (AUD) term loan A facility, and the revolving credit facility, an initial rate of, at the Company’s election, Base Rate plus 0.75% or Eurocurrency Rate plus 1.75%, and after the end of the Company’s fiscal quarter ended June 30, 2018, Base Rate loans plus a margin ranging from 0.25% to 1.00% or Eurocurrency Rate plus a margin from 1.25% to 2.00%, based on the Consolidated Leverage Ratio (as defined in the Credit Agreement); (5) revise covenants including increasing the amounts available under the restricted payment negative covenant and revising the Maximum Consolidated Leverage Ratio (as defined in the Credit Agreement) to include a 4.5 leverage ratio through September 30, 2019 after which the leverage ratio stepped down to 4.0.

On November 13, 2018, the Credit Agreement was amended to revise the definition of "Consolidated EBITDA" to increase corporate restructuring allowances and provide for additional flexibility under the covenants for non-core asset dispositions, among other changes.

On January 28, 2020, AECOM entered into Amendment No. 7 to the Credit Agreement which modifies the asset disposition covenant to permit the sale of our Management Services business and the mandatory prepayment provision so that only outstanding term loans were prepaid using the net proceeds from the sale.

On May 1, 2020, the Company entered into Amendment No. 8 to the Credit Agreement which allows for borrowings to be made, until three months after closing, up to an aggregate principal amount of $400,000,000 under a secured delayed draw term loan facility, the proceeds of which are permitted to be used to pay all or a portion of the amounts payable in connection with any tender for or redemption or repayment of the Company's or its subsidiaries' existing senior unsecured notes and any associated fees and expenses. The amendment also revised certain terms and covenants in the Credit Agreement, including by, among other things, the maximum leverage ratio covenant to 4.00:1.00, subject to increases to 4.50:1.00 for certain specified periods in connection with certain material acquisitions, increasing the potential size of incremental facilities under the Credit Agreement, revising the definition of "Consolidated EBITDA" to provide for additional flexibility in the calculation thereof and adding a Eurocurrency Rate floor of 0.75% to the interest rate under the revolving credit facility.

Under the Credit Agreement, the Company is subject to a maximum consolidated leverage ratio and minimum consolidated interest coverage ratio at the end of each fiscal quarter. The Company’s Consolidated Leverage Ratio was 3.1 at March 31, 2020. The Company’s Consolidated Interest Coverage Ratio was 4.9 at March 31, 2020. As of March 31, 2020, the Company was in compliance with the covenants of the Credit Agreement.

At March 31, 2020 and September 30, 2019, outstanding standby letters of credit totaled $22.4 million and $22.8 million, respectively, under the Company’s revolving credit facilities. As of March 31, 2020 and September 30, 2019, the Company had $1,327.6 million and $1,327.2 million, respectively, available under its revolving credit facility.

2014 Senior Notes

On October 6, 2014, the Company completed a private placement offering of $800,000,000 aggregate principal amount of the unsecured 5.750% Senior Notes due 2022 (2022 Notes) and $800,000,000 aggregate principal amount of the unsecured 5.875% Senior Notes due 2024 (the 2024 Notes and, together with the 2022 Notes, the 2014 Senior Notes). On November 2, 2015, the Company completed an exchange offer to exchange the unregistered 2014 Senior Notes for registered notes, as well as all related guarantees. On March 16, 2018, the Company redeemed all of the 2022 Notes at a redemption price that was 104.313% of the principal amount outstanding plus accrued and unpaid interest. The March 16, 2018 redemption resulted in a $34.5 million prepayment premium, which was included in interest expense.

As of March 31, 2020, the estimated fair value of the 2024 Notes was approximately $736.0 million. The fair value of the 2024 Notes as of March 31, 2020 was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary bond market and multiplying it by the outstanding balance of the 2024 Notes.

At any time prior to July 15, 2024, the Company may redeem on one or more occasions all or part of the 2024 Notes at a redemption price equal to the sum of (i) 100% of the principal amount thereof, plus (ii) a “make-whole” premium as of the date of the redemption, plus any accrued and unpaid interest to the date of redemption. In addition, on or after July 15, 2024, the 2024 Notes may be redeemed at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest to the date of redemption.

The indenture pursuant to which the 2024 Notes were issued contains customary events of default, including, among other things, payment default, exchange default, failure to provide notices thereunder and provisions related to bankruptcy events. The indenture also contains customary negative covenants.

The Company was in compliance with the covenants relating to the 2024 Notes as of March 31, 2020.

2017 Senior Notes

On February 21, 2017, the Company completed a private placement offering of $1,000,000,000 aggregate principal amount of its unsecured 5.125% Senior Notes due 2027 (the 2017 Senior Notes) and used the proceeds to immediately retire the remaining $127.6 million outstanding on the then existing term loan B facility as well as repay $600 million of the term loan A facility and $250 million of the revolving credit facility under its Credit Agreement. On June 30, 2017, the Company completed an exchange offer to exchange the unregistered 2017 Senior Notes for registered notes, as well as related guarantees.

As of March 31, 2020, the estimated fair value of the 2017 Senior Notes was approximately $875.0 million. The fair value of the 2017 Senior Notes as of March 31, 2020 was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary bond market and multiplying it by the outstanding balance of the 2017 Senior Notes. Interest will be payable on the 2017 Senior Notes at a rate of 5.125% per annum. Interest on the 2017 Senior Notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2017. The 2017 Senior Notes will mature on March 15, 2027.

At any time and from time to time prior to December 15, 2026, the Company may redeem all or part of the 2017 Senior Notes, at a redemption price equal to 100% of their principal amount, plus a “make whole” premium as of the redemption date, and accrued and unpaid interest to the redemption date.

In addition, at any time and from time to time prior to March 15, 2020, the Company may redeem up to 35% of the original aggregate principal amount of the 2017 Senior Notes with the proceeds of one or more qualified equity offerings, at a redemption price equal to 105.125%, plus accrued and unpaid interest. Furthermore, at any time on or after December 15, 2026, the Company may redeem on one or more occasions all or part of the 2017 Senior Notes at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest.

The indenture pursuant to which the 2017 Senior Notes were issued contains customary events of default, including, among other things, payment default, exchange default, failure to provide notices thereunder and provisions related to bankruptcy events. The indenture also contains customary negative covenants.

The Company was in compliance with the covenants relating to the 2017 Senior Notes as of March 31, 2020.

URS Senior Notes

In connection with the URS acquisition, the Company assumed the URS 3.85% Senior Notes due 2017 (2017 URS Senior Notes) and the URS 5.00% Senior Notes due 2022 (2022 URS Senior Notes), totaling $1.0 billion (URS Senior Notes). The URS acquisition triggered change in control provisions in the URS Senior Notes that allowed the holders of the URS Senior Notes to redeem their URS Senior Notes at a cash price equal to 101% of the principal amount and, accordingly, the Company redeemed $572.3 million of the URS Senior Notes on October 24, 2014. The remaining 2017 URS Senior Notes matured and were fully redeemed on April 3, 2017 for $179.2 million using proceeds from a $185 million delayed draw term loan A facility tranche under the Credit Agreement. The 2022 URS Senior Notes are general unsecured senior obligations of AECOM Global II, LLC as successor in interest to URS) and are fully and unconditionally guaranteed on a joint-and-several basis by some former URS domestic subsidiary guarantors.

As of March 31, 2020, the estimated fair value of the 2022 URS Senior Notes was approximately $235.5 million. The carrying value of the 2022 URS Senior Notes on the Company’s Consolidated Balance Sheets as of March 31, 2020 was $248.1 million. The fair value of the 2022 URS Senior Notes as of March 31, 2020 was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary bond market and multiplying it by the outstanding balance of the 2022 URS Senior Notes.

As of March 31, 2020, the Company were in compliance with the covenants relating to the 2022 URS Senior Notes.

Other Debt and Other Items

Other debt consists primarily of obligations under capital leases and loans, and unsecured credit facilities. The Company's unsecured credit facilities are primarily used for standby letters of credit issued in connection with general and professional liability insurance programs and for contract performance guarantees. At March 31, 2020 and September 30, 2019, these outstanding standby letters of credit totaled $448.9 million and $470.9 million, respectively. As of March 31, 2020, the Company had $428.4 million available under these unsecured credit facilities.

Effective Interest Rate

The Company’s average effective interest rate on its total debt, including the effects of the interest rate swap agreements, during the six months ended March 31, 2020 and 2019 was 5.0% and 5.1%, respectively.

Interest expense in the consolidated statements of operations included amortization of deferred debt issuance costs for the three and six months ended March 31, 2020 of $1.3 million and $2.5 million, respectively, and for the three and six months ended March 31, 2019 of $1.3 million and $2.5 million, respectively.

Debt - Scheduled Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Debt
2020 (six months remaining)	$ 39.8
2021	25.2
2022	269.9
2023	13.2
2024	4.7
Thereafter	1,800.3
Total debt	$ 2,153.1	$ 3,352.5

Discontinued Operations, Goodwill and Intangible Assets - Income statement information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Discontinued Operations, Goodwill and Intangible Assets
Gain on sale of disposal activities			$ 147,012
Impairment of goodwill and intangibles assets			89,288
Net (loss) income from discontinued operations	$ (130,749)	$ 35,247	(112,569)	$ 63,412
Disposal Group as held for sale \| Management Services
Discontinued Operations, Goodwill and Intangible Assets
Revenue	811,500	1,627,400	2,314,300	3,308,600
Cost of revenue	882,500	1,576,900	2,356,000	3,210,900
Gross (loss) profit	(71,000)	50,500	(41,700)	97,700
Equity in earnings of joint ventures	(21,700)	9,400	(16,900)	15,300
Gain on sale of disposal activities	147,000		147,000
Transaction costs	(41,400)		(41,400)
Impairment of goodwill and intangibles assets	(89,300)		(89,300)
(Loss) income from operations	(76,400)	59,900	(42,300)	113,000
Other income	400	400	1,800	1,200
Interest expense	(25,900)	(16,500)	(38,700)	(33,300)
(Loss) income before taxes	(101,900)	43,800	(79,200)	80,900
Income tax expense	28,800	8,600	33,400	17,500
Net (loss) income from discontinued operations	$ (130,700)	$ 35,200	$ (112,600)	$ 63,400

Reclassifications out of Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Mar. 31, 2020

Reclassifications out of Accumulated Other Comprehensive Loss

Schedule of accumulated balances and reporting period activities related to reclassifications out of accumulated other comprehensive loss


	Foreign		Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at December 31, 2019	$	(312.3)	$	(500.7)	$	(9.7)	$	(822.7)
Other comprehensive (loss) income before reclassification		8.7		(91.4)		(6.7)		(89.4)
Amounts reclassified from accumulated other comprehensive (loss) income		23.6		—		6.9		30.5
Balances at March 31, 2020	$	(280.0)	$	(592.1)	$	(9.5)	$	(881.6)


	Foreign		Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at December 31, 2018	$	(197.0)	$	(524.0)	$	(5.1)	$	(726.1)
Other comprehensive (loss) income before reclassification		(5.0)		22.5		(4.6)		12.9
Amounts reclassified from accumulated other comprehensive (loss) income		1.6		—		0.6		2.2
Balances at March 31, 2019	$	(200.4)	$	(501.5)	$	(9.1)	$	(711.0)


			Foreign				Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at September 30, 2019	$	(302.7)	$	(548.7)	$	(12.8)	$	(864.2)
Other comprehensive (loss) income before reclassification		(3.7)		(43.4)		(4.5)		(51.6)
Amounts reclassified from accumulated other comprehensive (loss) income		26.4		—		7.8		34.2
Balances at March 31, 2020	$	(280.0)	$	(592.1)	$	(9.5)	$	(881.6)


			Foreign				Accumulated
	Pension		Currency		Gain/(Loss) on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at September 30, 2018	$	(202.3)	$	(502.2)	$	1.2	$	(703.3)
Other comprehensive income (loss) before reclassification		(1.2)		0.7		(11.4)		(11.9)
Amounts reclassified from accumulated other comprehensive income (loss)		3.1		—		1.1		4.2
Balances at March 31, 2019	$	(200.4)	$	(501.5)	$	(9.1)	$	(711.0)

Discontinued Operations, Goodwill and Intangible Assets - Carrying value of goodwill by reportable segment (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2020 USD ($)
Changes in the carrying value of goodwill by reporting segment
Goodwill at the beginning of the period	$ 3,476,813
Foreign Exchange Impact	(29,900)
Goodwill at the end of the period	3,446,939
Americas
Changes in the carrying value of goodwill by reporting segment
Goodwill at the beginning of the period	2,623,000
Foreign Exchange Impact	(9,900)
Goodwill at the end of the period	2,613,100
International
Changes in the carrying value of goodwill by reporting segment
Goodwill at the beginning of the period	853,800
Foreign Exchange Impact	(20,000)
Goodwill at the end of the period	$ 833,800

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 31, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	0-52423
Entity Registrant Name	AECOM
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	61-1088522
Entity Address, Address Line One	1999 Avenue of the Stars, Suite 2600
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90067
City Area Code	213
Local Phone Number	593-8000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	ACM
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		160,085,842
Entity Central Index Key	0000868857
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

Earnings Per Share (Tables)

6 Months Ended

Mar. 31, 2020

Earnings Per Share

Reconciliation of the denominators for basic and diluted EPS


	Three Months Ended		Six Months Ended
	March 31,	March 31,	March 31,	March 31,
	2020	2019	2020	2019
	(in millions)
Denominator for basic earnings per share	158.6	156.6	157.9	156.5
Potential common shares	2.1	1.8	2.8	2.5
Denominator for diluted earnings per share	160.7	158.4	160.7	159.0

Other Financial Information

6 Months Ended

Mar. 31, 2020

Other Financial Information

Other Financial Information

13. Other Financial Information

Accrued expenses and other current liabilities consist of the following:


	March 31,		September 30,
	2020		2019
	(in millions)
Accrued salaries and benefits	$	690.0	$	681.5
Accrued contract costs		1,050.0		927.1
Other accrued expenses		464.4		269.7
	$	2,204.4	$	1,878.3

Accrued contract costs above include balances related to professional liability accruals of $544.7 million and $536.6 million as of March 31, 2020 and September 30, 2019, respectively. The remaining accrued contract costs primarily relate to costs for services provided by subcontractors and other non-employees. Liabilities recorded related to accrued contract losses were not material as of March 31, 2020 and September 30, 2019. The Company did not have material revisions to estimates for contracts where revenue is recognized using the percentage-of-completion method during the six months ended March 31, 2020 and 2019. In the first quarter of fiscal 2019, the Company commenced a restructuring plan to improve profitability. The Company expects to incur restructuring costs of $160 million to $190 million in fiscal year 2020 primarily related to costs associated with the sale of the Management Services business and expected exit of self-perform at-risk construction in the civil infrastructure, power, and oil and gas businesses. During the first half of fiscal 2020, the Company incurred restructuring expenses of $76.1 million, including personnel and other costs of $68.9 million and real estate costs of $7.2 million, of which $40.3 million was accrued and unpaid at March 31, 2020. During the first half of fiscal 2019, the Company incurred restructuring expenses of $79.2 million, including personnel and other costs of $57.1 million and real estate costs of $22.1 million.

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Sep. 30, 2019
Consolidated Balance Sheets
Common stock, authorized shares	300,000,000	300,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued shares	158,908,063	157,482,983
Common stock, outstanding shares	158,908,063	157,482,983

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (23,872)	$ 158,605
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	125,691	128,716
Equity in earnings of unconsolidated joint ventures	(6,623)	(38,467)
Distribution of earnings from unconsolidated joint ventures	36,172	31,222
Non-cash stock compensation	26,537	31,793
Gain on sale of discontinued operations	(147,012)
Impairment of goodwill and intangibles	89,288
Foreign currency translation	(6,918)	(2,565)
Pension settlement losses	713
Other	5,244	4,391
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable and contract assets	(488,685)	(232,881)
Prepaid expenses and other assets	(6,136)	10,393
Accounts payable	(266,858)	(131,286)
Accrued expenses and other current liabilities	14,994	(18,915)
Contract liabilities	107,394	31,670
Other long-term liabilities	34,110	(65,620)
Net cash used in operating activities	(505,961)	(92,944)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of discontinued operations, net of cash disposed	2,096,866
Investment in unconsolidated joint ventures	(70,670)	(77,303)
Return of investment in unconsolidated joint ventures	5,009	14,002
Proceeds from sale of investments	4,412	5,626
Payments for purchase of investments		(3,223)
Proceeds from disposal of property and equipment	1,593	5,372
Payments for capital expenditures	(46,156)	(49,817)
Net cash provided by (used) in investing activities	1,991,054	(105,343)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	4,094,512	4,504,215
Repayments of borrowings under credit agreements	(5,317,247)	(4,269,095)
Proceeds from issuance of common stock	13,543	14,542
Payments to repurchase common stock	(50,199)	(82,574)
Net distributions to noncontrolling interests	(36,912)	(36,022)
Other financing activities	3,070	7,570
Net cash provided by financing activities	(1,293,233)	138,636
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(5,884)	(204)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	185,976	(59,855)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,080,354	886,733
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,266,330	826,878
LESS CASH AND CASH EQUIVALENTS INCLUDED IN CURRENT ASSETS HELD FOR SALE	(131,269)	(160,773)
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS AT END OF PERIOD	$ 1,135,061	$ 666,105

Discontinued Operations, Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2020	Jan. 31, 2020	Sep. 30, 2019	Mar. 31, 2019
Discontinued Operations, Goodwill and Intangible Assets
Gain on sale of discontinued operations		$ 147,012
Summary of financial information of the Disposal Group is as follows:
Cash and cash equivalents	$ 131,269	131,269			$ 160,773
Non-current assets held for sale	338,673	338,673		$ 2,316,995
Long term liabilities held for sale	97,062	97,062		313,962
Disposal Group as held for sale \| Management Services
Discontinued Operations, Goodwill and Intangible Assets
Total consideration			$ 2,400,000
Cash consideration			2,250,000
Contingent consideration, prior work claims			$ 120,000
Gain on sale of discontinued operations	147,000	147,000
Impairment losses of goodwill	83,600
Impairment of Intangible Assets (Excluding Goodwill)	5,700
Summary of financial information of the Disposal Group is as follows:
Cash and cash equivalents	131,300	131,300		194,700
Receivables and contract assets	646,500	646,500		1,326,600
Other	22,000	22,000		112,000
Current assets held for sale	799,800	799,800		1,633,300
Property and equipment, net	113,000	113,000		153,800
Goodwill				1,798,500
Other	225,700	225,700		364,700
Non-current assets held for sale	338,700	338,700		2,317,000
Accounts payable and accrued expenses	448,700	448,700		1,056,000
Contract liabilities	78,600	78,600		88,900
Other	24,600	24,600		18,800
Current liabilities held for sale	551,900	551,900		1,163,700
Long term liabilities held for sale	$ 97,100	$ 97,100		$ 314,000

Revenue Recognition (Tables)

6 Months Ended

Mar. 31, 2020

Revenue Recognition

Schedule of revenues disaggregated by revenue sources


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
	(in millions)
Cost reimbursable	$	1,488.8	$	1,471.3	$	2,883.2	$	2,900.3
Guaranteed maximum price		929.1		1,003.6		1,876.6		2,033.9
Fixed price		827.8		937.7		1,721.5		1,834.7
Total revenue	$	3,245.7	$	3,412.6	$	6,481.3	$	6,768.9


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
	(in millions)
Americas	$	2,476.2	$	2,578.0	$	4,928.7	$	5,142.3
Europe, Middle East, Africa		405.4		463.2		835.0		893.5
Asia Pacific		364.1		371.4		717.6		733.1
Total revenue	$	3,245.7	$	3,412.6	$	6,481.3	$	6,768.9

Schedule of net accounts receivable


	March 31,		September 30,
	2020		2019
	(in millions)
Billed	$	2,353.7	$	2,284.8
Contract retentions		602.2		641.5
Total accounts receivable—gross		2,955.9		2,926.3
Allowance for doubtful accounts		(67.0)		(57.1)
Total accounts receivable—net	$	2,888.9	$	2,869.2

Other Financial Information (Tables)

6 Months Ended

Mar. 31, 2020

Other Financial Information

Schedule of accrued expenses and other current liabilities


	March 31,		September 30,
	2020		2019
	(in millions)
Accrued salaries and benefits	$	690.0	$	681.5
Accrued contract costs		1,050.0		927.1
Other accrued expenses		464.4		269.7
	$	2,204.4	$	1,878.3

Income Taxes

6 Months Ended

Mar. 31, 2020

Income Taxes

Income Taxes

10. Income Taxes

The Company's effective tax rate was 29.7% and (46.7)% for the six months ended March 31, 2020 and 2019, respectively. The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company's effective tax rate for the six-month period ended March 31, 2020 were tax expense of $13.3 million related to nondeductible costs, tax expense of $8.8 million related to foreign residual income, and tax expense of $5.4 million related to state income tax, partially offset by a tax benefit of $15.2 million related to income tax credits and incentives. All of these items are expected to have a continuing impact on the effective tax rate for the remainder of the fiscal year.

The most significant items contributing to the difference between the statutory U.S. federal income tax rate of 21.0% and the Company’s effective tax rate for the six-month period ended March 31, 2019 were a $38.1 million benefit related to the release of a valuation allowance on foreign tax credits and a $11.5 million benefit related to income tax credits and incentives, partially offset by state income tax expense of $5.8 million.

During the first quarter of fiscal 2019, a valuation allowance in the amount of $38.1 million related to foreign tax credits was released due to sufficient positive evidence obtained during the quarter. The positive evidence included the issuance of regulations during the quarter related to The Tax Cuts and Jobs Act (Tax Act) and forecasting the utilization of the foreign tax credits within the foreseeable future. The Company evaluated the new positive evidence against any negative evidence to determine the valuation allowance was no longer needed.

In March 2020, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The Company does not expect there to be any significant benefits to the income tax provision as a result of the CARES Act.

As a result of internal restructuring and the sale of the Management Services business during the quarter, the Company recorded $62.3 million of tax expense in net income from discontinued operations which included a $52.0 million reduction of tax attributes to related goodwill and intangibles and the current U.S. federal and state tax impacts of the sale.

The Company is utilizing the annual effective tax rate method under ASC 740 to compute its interim tax provision. The Company’s effective tax rate fluctuates from quarter to quarter due to various factors including the change in the mix of global income and expenses, outcomes of administrative audits, changes in the assessment of valuation allowances due to management’s consideration of new positive or negative evidence during the quarter, and changes in enacted tax laws. Many international legislative and regulatory bodies have proposed legislation that could significantly impact how our international business activities are taxed. These proposed changes could have a material impact on the Company’s income tax expense and deferred tax balances.

The Company is currently under tax audit in several jurisdictions including the U.S. and believes the outcomes which are reasonably possible within the next twelve months, including lapses in statutes of limitations, could result in future adjustments, but will not result in a material change in the liability for uncertain tax positions.

Generally, the Company does not provide for U.S. taxes or foreign withholding taxes on gross book-tax differences in its non-U.S. subsidiaries because such basis differences of approximately $1.7 billion are able to and intended to be reinvested indefinitely. If these basis differences were distributed, foreign tax credits could become available under current law to partially or fully reduce the resulting U.S. income tax liability. There may also be additional U.S. or foreign income tax liability upon repatriation, although the calculation of such additional taxes is not practicable.

Joint Ventures and Variable Interest Entities (Tables)

6 Months Ended

Mar. 31, 2020

Joint Ventures and Variable Interest Entities

Summary of financial information of the consolidated joint ventures


	March 31,
	2020		September 30,
	(unaudited)		2019
	(in millions)
Current assets	$	558.9	$	581.3
Non-current assets		77.1		75.4
Total assets	$	636.0	$	656.7

Current liabilities	$	416.5	$	432.8
Non-current liabilities		1.5		—
Total liabilities		418.0		432.8
Total AECOM equity		129.6		137.9
Noncontrolling interests		88.4		86.0
Total owners’ equity		218.0		223.9
Total liabilities and owners’ equity	$	636.0	$	656.7

Summary of financial information of the unconsolidated joint ventures, as derived from their unaudited financial statements


	March 31,		September 30,
	2020		2019
	(in millions)
Current assets	$	1,153.1	$	1,133.5
Non-current assets		1,049.8		904.5
Total assets	$	2,202.9	$	2,038.0

Current liabilities	$	1,069.8	$	1,115.5
Non-current liabilities		107.2		182.3
Total liabilities		1,177.0		1,297.8
Joint ventures’ equity		1,025.9		740.2
Total liabilities and joint ventures’ equity	$	2,202.9	$	2,038.0

AECOM’s investment in joint ventures	$	256.9	$	256.1


	Six Months Ended
	March 31,		March 31,
	2020		2019
	(in millions)
Revenue	$	1,602.2	$	1,574.4
Cost of revenue		1,579.4		1,522.7
Gross profit	$	22.8	$	51.7
Net income	$	21.9	$	51.4

Summary of AECOM's equity in earnings of unconsolidated joint ventures


	Six Months Ended
	March 31,		March 31,
	2020		2019
	(in millions)
Pass through joint ventures	$	17.8	$	16.0
Other joint ventures		5.6		7.2
Total	$	23.4	$	23.2

Share-based Payments

6 Months Ended

Mar. 31, 2020

Share-based Payments

Share-based Payments

9. Share-based Payments

The fair value of the Company’s employee stock option awards is estimated on the date of grant. The expected term of awards granted represents the period of time the awards are expected to be outstanding. The risk-free interest rate is based on U.S. Treasury bond rates with maturities equal to the expected term of the stock option on the grant date. The Company uses historical data as a basis to estimate the probability of forfeitures.

Stock option activity for the six months ended March 31 was as follows:


	2020			2019
	Shares of stock	Weighted average		Shares of stock	Weighted average
	under options	exercise price		under options	exercise price
	(in millions)			(in millions)
Outstanding at September 30	0.1	$	31.62	0.6	$	31.62
Options granted	—		—	—		—
Options exercised	—		—	—		—
Options forfeited or expired	—		—	(0.5)		31.62
Outstanding at March 31	0.1		31.62	0.1		31.62

Vested and expected to vest in the future as of March 31	0.1	$	31.62	0.1	$	31.62

The Company grants stock units to employees under its Performance Earnings Program (PEP), whereby units are earned and issued dependent upon meeting established cumulative performance objectives and vest over a three-year service period. Additionally, the Company issues restricted stock units to employees which are earned based on service conditions. The grant date fair value of PEP awards and restricted stock unit awards is that day’s closing market price of the Company’s common stock. The weighted average grant date fair value of PEP awards was $43.02 and $27.51 during the six months ended March 31, 2020 and 2019, respectively. The weighted average grant date fair value of restricted stock unit awards was $42.27 and $27.67 during the six months ended March 31, 2020 and 2019, respectively. Total compensation expense related to these share-based payments including stock options was $26.5 million and $31.8 million during the six months ended March 31, 2020 and 2019, respectively. Unrecognized compensation expense related to total share-based payments outstanding as of March 31, 2020 and September 30, 2019 was $59.8 million and $74.6 million, respectively, to be recognized on a straight-line basis over the awards’ respective vesting periods which are generally three years.

Commitments and Contingencies

6 Months Ended

Mar. 31, 2020

Commitments and Contingencies

Commitments and Contingencies

15. Commitments and Contingencies

The Company records amounts representing its probable 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’s reasonably possible loss disclosures are presented on a gross basis prior to the consideration of insurance recoveries. The Company does not record gain contingencies until they are realized. In the ordinary course of business, the Company may not be aware that it or its affiliates are under investigation and may not be aware of whether or not a known investigation has been concluded.

In the ordinary course of business, the Company may enter into various arrangements providing financial or performance assurance to clients, lenders, or partners. Such arrangements include standby letters of credit, surety bonds, and corporate guarantees to support the creditworthiness or the project execution commitments of its affiliates, partnerships and joint ventures. Performance arrangements typically have various expiration dates ranging from the completion of the project contract and extending beyond contract completion in some circumstances such as for warranties. The Company may also guarantee that a project, when complete, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, the Company may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards. The potential payment amount of an outstanding performance arrangement is typically 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) may be required to complete those activities.

At March 31, 2020, the Company was contingently liable in the amount of approximately $471.2 million in issued standby letters of credit and $4.8 billion in issued surety bonds primarily to support project execution.

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 Company’s investment adviser jointly manages and sponsors the AECOM-Canyon Equity Fund, L.P. (the “Fund”), in which the Company indirectly holds an equity interest and has an ongoing capital commitment to fund investments. At March 31, 2020, the Company has capital commitments of $35 million to the Fund over the next 10 years.

In addition, in connection with the investment activities of AECOM Capital, the Company provides guarantees of contractual obligations, including guarantees for completion of projects, repayment of debt, environmental indemnity obligations and other lender required guarantees.

Department of Energy Deactivation, Demolition, and Removal Project

AECOM Energy and Construction, Inc, an Ohio corporation, a former affiliate of the Company (“Former Affiliate”) executed a cost-reimbursable task order with the Department of Energy (DOE) in 2007 to provide deactivation, demolition and removal services at a New York State project site that, during 2010, experienced contamination and performance issues and remains uncompleted. In February 2011, the Former Affiliate and the DOE executed a Task Order Modification that changed some cost-reimbursable contract provisions to at-risk. The Task Order Modification, including subsequent amendments, required the DOE to pay all project costs up to $106 million, required the Former Affiliate and the DOE to equally share in all project costs incurred from $106 million to $146 million, and required the Former Affiliate to pay all project costs exceeding $146 million.

Due to unanticipated requirements and permitting delays by federal and state agencies, as well as delays and related ground stabilization activities caused by Hurricane Irene in 2011, the Former Affiliate was required to perform work outside the scope of the Task Order Modification. In December 2014, the Former Affiliate submitted an initial set of claims against the DOE pursuant to the Contracts Disputes Acts seeking recovery of $103 million, including additional fees on changed work scope (the “2014 Claims”). On December 6, 2019, the Former Affiliate submitted a second set of claims against the DOE seeking recovery of an additional $60.4 million, including additional project costs and delays outside the scope of the contract as a result of differing site and ground conditions (the “2019 Claims”). The Former Affiliate also submitted three alternative breach of contract claims to the 2014 and 2019 Claims that may entitle the Former Affiliate to recovery of $148.5 million to $329.4 million. On December 30, 2019, the DOE denied the Former Affiliate’s 2014 Claims. The Company intends to appeal such decision. Deconstruction, decommissioning and site restoration activities are complete.

On January 31, 2020, the Company completed the sale of its Management Services business to the Purchaser including the Former Affiliate who worked on the DOE project. The Company and the Purchaser agreed that all future DOE project claim recoveries and costs will be split 10% to the Purchaser and 90% to the Company with the Company retaining control of all future strategic legal decisions.

The Company intends to vigorously pursue all claimed amounts but can provide no certainty that the Company will recover 2014 and 2019 Claims submitted against the DOE, or any additional incurred claims or costs, which could have a material adverse effect on the Company’s results of operations.

New York Department of Environmental Conservation

In September 2017, AECOM USA, Inc. was advised by the New York State Department of Environmental Conservation (DEC) of allegations that it committed environmental permit violations pursuant to the New York Environmental Conservation Law (ECL) associated with AECOM USA, Inc.’s oversight of a stream restoration project for Schoharie County which could result in substantial penalties if calculated under the ECL’s maximum civil penalty provisions. AECOM USA, Inc. disputes this claim and intends to continue to defend this matter vigorously; however, AECOM USA, Inc. cannot provide assurances that it will be successful in these efforts. The potential range of loss in excess of any current accrual cannot be reasonably estimated at this time primarily because the matter involves complex and unique environmental and regulatory issues; the project site involves the oversight and involvement of various local, state and federal government agencies; there is substantial uncertainty regarding any alleged damages; and the matter is in its preliminary stage any negotiations of a consent order or other resolution.

Refinery Turnaround Project

A Former Affiliate of the Company entered into an agreement to perform turnaround maintenance services during a planned shutdown at a refinery in Montana in December 2017. The turnaround project was completed in February 2019. Due to circumstances outside of the Company's Former Affiliate’s control, including client directed changes and delays and the refinery’s condition, The Company's Former Affiliate performed additional work outside of the original contract over $90 million and is entitled to payment from the refinery owner of approximately $144 million. In March 2019, the refinery owner sent a letter to the Company’s Former Affiliate alleging it incurred approximately $79 million in damages due to the Company’s Former Affiliate’s project performance. In April 2019, the Company’s Former Affiliate filed and perfected a $132 million construction lien against the refinery owner for unpaid labor and materials costs. In August 2019, following a subcontractor complaint filed in the Thirteen Judicial District Court of Montana asserting claims against the refinery owner and the Company’s Former Affiliate, the refinery owner crossclaimed against the Company’s Former Affiliate and the subcontractor. In October 2019, following the subcontractor’s dismissal of its claims, the Company’s Former Affiliate removed the matter to federal court and cross claimed against the refinery owner. In December 2019, the refinery owner claimed $93.0 million in damages and offsets against the Company’s Former Affiliate.

On January 31, 2020, the Company completed the sale of its Management Services business to the Purchaser including the Former Affiliate, however, the Refinery Turnaround project, including related claims and liabilities, remained as part of the Company's self-perform at-risk construction business which is classified within discontinued operations.

The Company intends to vigorously prosecute and defend this matter; however, the Company cannot provide assurance that the Company will be successful in these efforts. The resolution of this matter and any potential range of loss cannot be reasonably determined or estimated at this time, primarily because the matter raises complex legal issues that Company is continuing to assess.

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Consolidated Statements of Operations
Revenue	$ 3,245,737	$ 3,412,605	$ 6,481,347	$ 6,768,943
Cost of revenue	3,076,924	3,267,768	6,146,734	6,500,710
Gross profit	168,813	144,837	334,613	268,233
Equity in earnings of joint ventures	13,505	16,600	23,433	23,232
General and administrative expenses	(41,037)	(37,426)	(84,651)	(73,333)
Restructuring costs	(31,213)	(15,875)	(76,138)	(79,170)
Income from operations	110,068	108,136	197,257	138,962
Other income	2,430	3,761	6,438	6,746
Interest expense	(37,111)	(41,407)	(77,488)	(80,832)
Income from continuing operations before taxes	75,387	70,490	126,207	64,876
Income tax expense (benefit) for continuing operations	21,604	12,218	37,510	(30,317)
Net income from continuing operations	53,783	58,272	88,697	95,193
Net (loss) income from discontinued operations	(130,749)	35,247	(112,569)	63,412
Net (loss) income	(76,966)	93,519	(23,872)	158,605
Net income attributable to noncontrolling interests from continuing operations	(5,243)	(6,898)	(9,290)	(11,838)
Net income attributable to noncontrolling interests from discontinued operations	(3,917)	(8,776)	(12,360)	(17,403)
Net income attributable to noncontrolling interests	(9,160)	(15,674)	(21,650)	(29,241)
Net income attributable to AECOM from continuing operations	48,540	51,374	79,407	83,355
Net (loss) income attributable to AECOM from discontinued operations	(134,666)	26,471	(124,929)	46,009
Net income attributable to AECOM	$ (86,126)	$ 77,845	$ (45,522)	$ 129,364
Net income (loss) attributable to AECOM per share:
Basic continuing operations per share	$ 0.31	$ 0.33	$ 0.50	$ 0.53
Basic discontinued operations per share	(0.85)	0.17	(0.79)	0.30
Basic earnings per share	(0.54)	0.50	(0.29)	0.83
Diluted continuing operations per share	0.30	0.32	0.49	0.52
Diluted discontinued operations per share	(0.84)	0.17	(0.77)	0.29
Diluted earnings per share	$ (0.54)	$ 0.49	$ (0.28)	$ 0.81
Weighted average shares outstanding:
Basic (in shares)	158,550	156,621	157,941	156,519
Diluted (in shares)	160,718	158,416	160,687	159,010

Debt - URS Senior Notes (Details) - USD ($) $ in Millions	Oct. 24, 2014	Mar. 31, 2020	Sep. 30, 2019	Apr. 03, 2017	Feb. 21, 2017	Sep. 29, 2016	Oct. 17, 2014
Debt
Debt		$ 2,153.1	$ 3,352.5
Term loan A
Debt
Amount of debt redeemed					$ 600.0
Borrowing capacity						$ 185.0
URS Senior Notes
Debt
Debt		248.1	$ 248.1				$ 1,000.0
Redemption price equal to principal using proceeds from equity offerings (in percent)	101.00%
Amount of debt redeemed	$ 572.3
URS Senior Notes \| 2017 URS Senior Notes
Debt
Interest rate (as a percent)							3.85%
Amount of debt redeemed				$ 179.2
URS Senior Notes \| 2022 URS Senior Notes
Debt
Interest rate (as a percent)							5.00%
Debt		248.1
Fair value of debt instrument		$ 235.5

Leases - Total remaining lease payments under the Company's Finance lease (Details) $ in Millions	Mar. 31, 2020 USD ($)
Leases
2020 (six months remaining)	$ 11.3
2021	21.4
2022	17.9
2023	11.5
2024	3.7
Thereafter	1.6
Total lease payments	67.4
Less: Amounts representing interest	(6.3)
Total lease liabilities	$ 61.1

Leases

6 Months Ended

Mar. 31, 2020

Leases

Leases

12. Leases

On October 1, 2019, the Company adopted FASB ASC 842 on a modified retrospective basis, which amended the accounting standards for leases. Accordingly, the Company applied the new guidance as of the date of adoption with a cumulative-effect adjustment recorded through equity. Prior periods have not been restated as a result of the adoption. Retained earnings decreased $87.8 million due to the adoption, primarily from impairment of the right-of-use assets associated with office building leases. Consistent with its restructuring plan to improve profitability in the fourth quarter of fiscal 2019, the Company evaluated its real estate portfolio to better align with the ongoing business. The Company identified leased assets that were not recoverable, and recorded an adjustment to retained earnings upon adoption reflecting the impairment of those long-lived leased assets. Fair value of the right-of-use assets was determined primarily using Level 3 inputs, such as discounted cash flows.

The Company also applied transition elections that allow it to avoid reassessment of whether expired or expiring leases are or contain leases, lease classification, and initial direct costs. Adoption of the new lease guidance did not significantly change the Company’s accounting for finance leases, which were previously referred to as capital leases.

The Company and its subsidiaries are lessees in non-cancelable leasing agreements for office buildings and equipment. Substantially all of the Company’s office building leases are operating leases, and its equipment leases are both operating and finance leases. The Company groups lease and non-lease components for its equipment leases into a single lease component but separates lease and non-lease components for its office building leases.

The Company recognizes a right-of-use asset and lease liability for its operating leases at the commencement date equal to the present value of the contractual minimum lease payments over the lease term. The present value is calculated using the rate implicit in the lease, if known, or the Company’s incremental secured borrowing rate. The discount rate used for operating leases is primarily determined based on an analysis the Company’s incremental secured borrowing rate, while the discount rate used for finance leases is primarily determined by the rate specified in the lease.

The related lease payments are expensed on a straight-line basis over the lease term, including, as applicable, any free-rent period during which the Company has the right to use the asset. For leases with renewal options where the renewal is reasonably assured, the lease term, including the renewal period, is used to determine the appropriate lease classification and to compute periodic rental expense. Leases with initial terms shorter than 12 months are not recognized on the balance sheet, and lease expense is recognized on a straight-line basis.

The components of lease expenses are as follows:


	Three Months Ended		Six Months Ended
	March 31, 2020		March 31, 2020
	(in millions)
Operating lease cost	$	48.8	$	95.4
Finance lease cost
Amortization of right-of-use assets		5.1		9.7
Interest on lease liabilities		0.5		1.0
Variable lease cost		8.8		18.3
Short-term lease cost		2.4		5.8
Total lease cost	$	65.6	$	130.2

Additional balance sheet information related to leases is as follows:


(in millions except as noted)	Balance Sheet Classification	March 31, 2020
Assets:
Operating lease assets	Operating lease right-of-use assets	$	648.6
Finance lease assets	Property and equipment – net		52.5
Total lease assets		$	701.1

Liabilities:
Current:
Operating lease liabilities	Accrued expenses and other current liabilities	$	168.7
Finance lease liabilities	Current portion of long-term debt		19.5
Total current lease liabilities			188.2
Non-current:
Operating lease liabilities	Operating lease liabilities, noncurrent		738.0
Finance lease liabilities	Long-term debt		41.6
Total non-current lease liabilities		$	779.6


	March 31, 2020
Weighted average remaining lease term (in years):
Operating leases	7.5
Finance leases	3.1
Weighted average discount rates:
Operating leases	4.6	%
Finance leases	4.3	%

Additional cash flow information related to leases is as follows:


	Six Months Ended
	March 31, 2020
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	110.0
Operating cash flows from finance leases		1.0
Financing cash flows from finance leases		8.8
Right-of-use assets obtained in exchange for new operating leases		55.7
Right-of-use assets obtained in exchange for new finance leases		13.5

Total remaining lease payments under both the Company’s operating and finance leases are as follows:


	Operating Leases		Finance Leases
Fiscal Year	(in millions)
2020 (six months remaining)	$	108.2	$	11.3
2021		189.0		21.4
2022		159.0		17.9
2023		125.8		11.5
2024		102.0		3.7
Thereafter		397.9		1.6
Total lease payments	$	1,081.9	$	67.4
Less: Amounts representing interest	$	(175.2)	$	(6.3)
Total lease liabilities	$	906.7	$	61.1

Debt - Effective Interest Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Debt
Effective interest rate including effects of interest rate swap agreements			5.0%	5.1%
Amortization of deferred debt issuance costs	$ 1.3	$ 1.3	$ 2.5	$ 2.5

Debt (Tables)

6 Months Ended

Mar. 31, 2020

Debt

Schedule of debt


	March 31,		September 30,
	2020		2019
	(in millions)
2014 Credit Agreement	$	—	$	1,182.2
2014 Senior Notes		800.0		800.0
2017 Senior Notes		1,000.0		1,000.0
URS Senior Notes		248.1		248.1
Other debt		105.0		122.2
Total debt		2,153.1		3,352.5
Less: Current portion of debt and short-term borrowings		(52.4)		(98.3)
Less: Unamortized debt issuance costs		(21.6)		(36.2)
Long-term debt	$	2,079.1	$	3,218.0

Schedule of maturities of debt


Fiscal Year
2020 (six months remaining)	$	39.8
2021		25.2
2022		269.9
2023		13.2
2024		4.7
Thereafter		1,800.3
Total	$	2,153.1

New Accounting Pronouncements and Changes in Accounting

6 Months Ended

Mar. 31, 2020

New Accounting Pronouncements and Changes in Accounting

New Accounting Pronouncements and Changes in Accounting

2. New Accounting Pronouncements and Changes in Accounting

In May 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance which amended the existing accounting standards for revenue recognition. The new accounting guidance establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The Company adopted the new standard on October 1, 2018, using the modified retrospective method, which resulted in an adjustment to retained earnings of $7.0 million, net of tax. Detailed disclosures regarding the adoption and other required disclosures can be found in Note 4.

In February 2016, the FASB issued new accounting guidance which changes accounting requirements for leases. The new guidance requires lessees to recognize the assets and liabilities arising from all leases, including those classified as operating leases under previous accounting guidance, on the balance sheet. It also requires disclosure of key information about leasing arrangements to increase transparency and comparability among organizations. The Company adopted the new guidance beginning October 1, 2019 using the modified retrospective adoption method, which resulted

in a downward adjustment to retained earnings of $87.8 million, net of tax. Detailed disclosures regarding the adoption and other required disclosures can be found in Note 12.

In June 2016, the FASB issued a new credit loss standard that changes the impairment model for most financial assets and some other instruments. The new guidance will replace the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The guidance will be effective for the Company’s fiscal year starting October 1, 2020. The Company is currently evaluating the impact that the new guidance will have on its consolidated financial statements.

In February 2018, the FASB issued new accounting guidance which provides entities the option to reclassify certain tax effects from other comprehensive income to retained earnings. The guidance addresses a narrow-scope financial reporting issue related to the tax effects that may become stranded in accumulated other comprehensive income as a result of the enactment of the Tax Cuts and Jobs Act. Under the guidance, an entity may elect to reclassify the income tax effects of the Tax Act on items within accumulated other comprehensive income to retained earnings. The Company has determined that it will not make this election.

In August 2018, the FASB issued new accounting guidance aligning the capitalization of certain implementation costs incurred in a hosting arrangement that is a service contract with previously existing guidance for capitalizing costs incurred to develop internal-use software. The new guidance will be effective for the Company’s fiscal year starting October 1, 2020. The Company does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements.

In August 2018, the FASB issued new accounting guidance amending the disclosure requirements for fair value measurements. These improvements will require more disclosure for amounts measured at fair value, and specifically unobservable inputs used in fair value measurements. The Company expects to adopt the new guidance starting on October 1, 2020. The Company is currently evaluating the impact that the new guidance will have on its financial reporting process.

In March 2020, the Securities and Exchange Commission (SEC) adopted final rules that amend the financial disclosure requirement for guarantors of registered debt securities in Rule 3-10 of Regulation S-X. The new rules amend and streamline the disclosures required by guarantors and issuers of guaranteed securities. Among other things, the new disclosures may be located outside the financial statements. The new rule is effective January 4, 2021, and early adoption is permitted. The Company adopted the new rule on March 31, 2020. Accordingly, the revised condensed consolidating financial information is presented in Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.

Revenue Recognition

6 Months Ended

Mar. 31, 2020

Revenue Recognition

Revenue Recognition

4. Revenue Recognition

On October 1, 2018, the Company adopted FASB Accounting Standards Codification (ASC) 606 on a modified retrospective basis, which amended the accounting standards for revenue recognition. As a result, the new guidance was applied retrospectively to contracts which were not completed as of October 1, 2018. Contracts completed prior to October 1, 2018 were accounted for using the guidance in effect at that time. The cumulative effect of applying the new guidance was recorded as a reduction to retained earnings at October 1, 2018 of $7.0 million, net of tax. Consistent with the modified retrospective transition approach, the comparative period was not adjusted to conform with current period presentation. The adjustment was primarily related to segmenting or combining contracts by performance obligations identified under the criteria of the new standard.

The new accounting guidance establishes principles for recognizing revenue upon the transfer of control of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The Company generally recognizes revenues over time as performance obligations are satisfied. The Company generally measures its progress to completion using an input measure of total costs incurred divided by total costs expected to be incurred. 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 GAAP, are included in the Company’s revenue and cost of revenue. These subcontractor and other direct costs for the six months ended March 31, 2020 and 2019 were $3.4 billion and $3.7 billion, respectively.

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, such as engineering progress, material quantities, the achievement of milestones, penalty provisions, labor productivity and cost estimates. Additionally, the Company is required to make estimates for the amount of consideration to be received, including bonuses, awards, incentive fees, claims, unpriced change orders, penalties, and liquidated damages. Variable consideration is included in the estimate of the transaction price only to the extent that a significant reversal would not be probable. Management continuously monitors factors that may affect the quality of its estimates, and material changes in estimates are disclosed accordingly. Costs attributable to claims are treated as costs of contract performance as incurred.

The following summarizes the Company’s major contract types:

Cost Reimbursable Contracts

Cost reimbursable contracts include cost-plus fixed fee, cost-plus fixed rate, and time-and-materials price contracts. Under cost-plus contracts, the Company charges clients for its costs, including both direct and indirect costs, plus a negotiated fee or rate. The Company recognizes revenue based on actual direct costs incurred and the applicable fixed rate or portion of the fixed fee earned as of the balance sheet date. Under time-and-materials price 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 materials and other direct incidental expenditures incurred in connection with its performance under the contract. The Company may apply a practical expedient to recognize revenue in the

amount in which it has the right to invoice if its right to consideration is equal to the value of performance completed to date.

Guaranteed Maximum Price Contracts (GMP)

GMP contracts share many of the same contract provisions as cost-plus and fixed-price contracts. As with cost-plus contracts, clients are provided a disclosure of all the project costs, and a lump sum or percentage fee is separately identified. The Company provides clients with a guaranteed price for the overall project (adjusted for change orders issued by clients) and a schedule including the expected completion date. Cost overruns or costs associated with project delays in completion could generally be the Company’s responsibility. For many of the Company’s commercial or residential GMP contracts, the final price is generally not established until the Company has subcontracted a substantial percentage of the trade contracts with terms consistent with the master contract, and it has negotiated additional contractual limitations, such as waivers of consequential damages as well as aggregate caps on liabilities and liquidated damages. Revenue is recognized for GMP contracts as project costs are incurred relative to total estimated project costs.

Fixed-Price Contracts

Fixed price contracts include both lump-sum and fixed-unit price contracts. Under lump-sum contracts, the Company performs all the work under the contract for a specified fee. Lump-sum contracts are typically subject to price adjustments if the scope of the project changes or unforeseen conditions arise. Under fixed-unit price contracts, the Company performs a 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. Revenue is recognized for fixed-price contracts using the input method measured on a cost-to-cost basis.

The following tables present the Company’s revenues disaggregated by revenue sources:


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
	(in millions)
Cost reimbursable	$	1,488.8	$	1,471.3	$	2,883.2	$	2,900.3
Guaranteed maximum price		929.1		1,003.6		1,876.6		2,033.9
Fixed price		827.8		937.7		1,721.5		1,834.7
Total revenue	$	3,245.7	$	3,412.6	$	6,481.3	$	6,768.9


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019
	(in millions)
Americas	$	2,476.2	$	2,578.0	$	4,928.7	$	5,142.3
Europe, Middle East, Africa		405.4		463.2		835.0		893.5
Asia Pacific		364.1		371.4		717.6		733.1
Total revenue	$	3,245.7	$	3,412.6	$	6,481.3	$	6,768.9

As of March 31, 2020, the Company had allocated $16.5 billion of transaction price to unsatisfied or partially satisfied performance obligations, of which approximately 60% is expected to be satisfied within the next twelve months.

Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. The Company recognized revenue of $514.6 million and $403.9 million during the six months ended March 31, 2020 and 2019, respectively, that was included in contract liabilities as of September 30, 2019 and 2018, respectively.

The Company’s timing of revenue recognition may not be consistent with its rights to bill and collect cash from its clients. Those rights are generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of work or when services are performed. The Company’s accounts receivable represent amounts billed

to clients that have yet to be collected and represent an unconditional right to cash from its clients. Contract assets represent the amount of contract revenue recognized but not yet billed pursuant to contract terms or accounts billed after the balance sheet date. Contract liabilities represent billings as of the balance sheet date, as allowed under the terms of a contract, but not yet recognized as contract revenue pursuant to the Company’s revenue recognition policy.

Net accounts receivable consisted of the following:


	March 31,		September 30,
	2020		2019
	(in millions)
Billed	$	2,353.7	$	2,284.8
Contract retentions		602.2		641.5
Total accounts receivable—gross		2,955.9		2,926.3
Allowance for doubtful accounts		(67.0)		(57.1)
Total accounts receivable—net	$	2,888.9	$	2,869.2

Substantially all contract assets as of March 31, 2020 and September 30, 2019 are expected to be billed and collected within twelve months, except for claims. Significant claims recorded in contract assets and other non-current assets were approximately $110 million as of both March 31, 2020 and September 30, 2019. The asset related to the Deactivation, Demolition, and Removal Project retained from the Purchaser discussed in Note 15 is presented in prepaid expense and other current assets from continuing operations in the Consolidated Balance Sheet. Contract retentions represent amounts invoiced to clients where payments have been withheld from progress payments until the contracted work has been completed and approved by the client. 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. federal government, no single client accounted for more than 10% of the Company’s outstanding receivables at March 31, 2020 and September 30, 2019.

The Company sold trade receivables to financial institutions, of which $97.0 million and $91.9 million were outstanding as of March 31, 2020 and September 30, 2019, respectively. The Company does not retain financial or legal obligations for these receivables that would result in material losses. The Company’s ongoing involvement is limited to the remittance of customer payments to the financial institutions with respect to the sold trade receivables.

Debt - Other Debt and Other Items (Details) - Other Debt - Standby letter of credit - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Debt
Outstanding letters of credit	$ 448.9	$ 470.9
Remaining borrowing capacity under credit facility	$ 428.4

Revenue Recognition - Disaggregated revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Revenue Recognition
Revenue	$ 3,245,737	$ 3,412,605	$ 6,481,347	$ 6,768,943
Cost reimbursable
Revenue Recognition
Revenue	1,488,800	1,471,300	2,883,200	2,900,300
Guaranteed maximum price
Revenue Recognition
Revenue	929,100	1,003,600	1,876,600	2,033,900
Fixed price
Revenue Recognition
Revenue	827,800	937,700	1,721,500	1,834,700
Americas
Revenue Recognition
Revenue	2,476,200	2,578,000	4,928,700	5,142,300
Europe, Middle East, Africa
Revenue Recognition
Revenue	405,400	463,200	835,000	893,500
Asia Pacific
Revenue Recognition
Revenue	$ 364,100	$ 371,400	$ 717,600	$ 733,100

Derivative Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2020

Derivative Financial Instruments and Fair Value Measurements

Notional principle, fixed rates and related expiration dates of outstanding interest rate swap agreements


	March 31, 2020
Notional Amount	Notional Amount	Fixed	Expiration
Currency	(in millions)	Rate	Date
USD	200.0	2.60%	February 2023


	September 30, 2019
Notional Amount	Notional Amount	Fixed	Expiration
Currency	(in millions)	Rate	Date
AUD	200.0	2.19%	February 2021
CAD	400.0	2.49%	September 2022
USD	200.0	2.60%	February 2023

Debt - 2017 Senior Notes (Details) - USD ($)	Feb. 21, 2017	Mar. 31, 2020
Term loan B
Debt
Amount of debt redeemed	$ 127,600,000
Term loan A
Debt
Amount of debt redeemed	600,000,000
Revolving credit facility
Debt
Amount of debt redeemed	250,000,000
2017 Senior Notes
Debt
Principal amount	$ 1,000,000,000
Fair value of debt instrument		$ 875,000,000.0
Interest rate (as a percent)	5.125%
2017 Senior Notes \| At any time and from time to time prior to December 15, 2026
Debt
Redemption price equal to principal amount (in percent)	100.00%
2017 Senior Notes \| At any time and from time to time prior to March 15, 2020
Debt
Maximum principal amount that can be redeemed using proceeds from equity offerings(in percent)	35.00%
Redemption price equal to principal using proceeds from equity offerings (in percent)	105.125%
2017 Senior Notes \| At any time on or after December 15, 2026
Debt
Redemption price equal to principal amount (in percent)	100.00%

Pension Benefit Obligations (Tables)

6 Months Ended

Mar. 31, 2020

Pension Benefit Obligations

Components of net periodic cost for the Company's pension and post-retirement plans


	Three Months Ended								Six Months Ended
	March 31, 2020				March 31, 2019				March 31, 2020				March 31, 2019
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
	(in millions)
Components of net periodic benefit cost:
Service costs	$	—	$	0.1	$	—	$	0.1	$	—	$	0.3	$	—	$	0.2
Interest cost on projected benefit obligation		1.6		5.7		2.1		7.7		3.2		11.3		4.3		15.1
Expected return on plan assets		(1.7)		(9.4)		(2.2)		(9.8)		(3.5)		(18.8)		(4.5)		(19.3)
Amortization of prior service cost		0.1		—		0.1		(0.1)		0.1		—		0.1		(0.1)
Amortization of net loss		1.2		2.2		0.9		1.1		2.4		4.3		1.9		2.1
Settlement loss recognized		0.5		0.2		0.1		—		0.5		0.2		0.1		0.1
Net periodic benefit cost	$	1.7	$	(1.2)	$	1.0	$	(1.0)	$	2.7	$	(2.7)	$	1.9	$	(1.9)

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total AECOM Stockholders' Equity	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Non-Controlling Interests	Total
BALANCE at Sep. 30, 2018	$ 4,092,780	$ 1,570	$ 3,846,392	$ (703,330)	$ 948,148	$ 185,594	$ 4,278,374
Increase (Decrease) in Stockholders' Equity
Net income	129,364				129,364	29,241	158,605
Other comprehensive loss	(7,691)			(7,691)		203	(7,488)
Issuance of stock	48,717	38	48,679		(59,973)		48,717
Repurchases of stock	(82,574)	(35)	(22,566)				(82,574)
Stock based compensation	31,793		31,793				31,793
Other transactions with noncontrolling interests						15,922	15,922
Contributions from noncontrolling interests						3,150	3,150
Distributions to noncontrolling interests						(39,172)	(39,172)
BALANCE at Mar. 31, 2019	4,199,936	1,573	3,904,298	(711,021)	1,005,086	194,938	4,394,874
BALANCE at Dec. 31, 2018	4,077,800	1,570	3,845,145	(726,145)	957,230	172,629	4,250,429
Increase (Decrease) in Stockholders' Equity
Net income	77,845				77,845	15,674	93,519
Other comprehensive loss	15,124			15,124		145	15,269
Issuance of stock	43,232	14	43,218				43,232
Repurchases of stock	(30,227)	(11)	(227)		(29,989)		(30,227)
Stock based compensation	16,162		16,162				16,162
Other transactions with noncontrolling interests						13,735	13,735
Distributions to noncontrolling interests						(7,245)	(7,245)
BALANCE at Mar. 31, 2019	4,199,936	1,573	3,904,298	(711,021)	1,005,086	194,938	4,394,874
Increase (Decrease) in Stockholders' Equity
Cumulative effect of accounting standard adoption	(12,453)						(12,453)
BALANCE at Sep. 30, 2019	3,690,576	1,575	3,953,650	(864,197)	599,548	208,774	3,899,350
Increase (Decrease) in Stockholders' Equity
Net income	(45,522)				(45,522)	21,650	(23,872)
Other comprehensive loss	(17,377)			(17,377)		(218)	(17,595)
Issuance of stock	15,274	27	15,247				15,274
Repurchases of stock	(50,199)	(13)	(35,311)		(14,875)		(50,199)
Stock based compensation	26,537		26,537				26,537
Other transactions with noncontrolling interests						816	816
Disposal of noncontrolling interest of business sold						(60,089)	(60,089)
Contributions from noncontrolling interests						6,181	6,181
Distributions to noncontrolling interests						(43,093)	(43,093)
BALANCE at Mar. 31, 2020	3,531,502	1,589	3,960,123	(881,574)	451,364	134,021	3,665,523
BALANCE at Dec. 31, 2019	3,673,002	1,582	3,956,596	(822,666)	537,490	186,402	3,859,404
Increase (Decrease) in Stockholders' Equity
Net income	(86,126)				(86,126)	9,160	(76,966)
Other comprehensive loss	(58,908)			(58,908)		(325)	(59,233)
Issuance of stock	9,941	10	9,931				9,941
Repurchases of stock	(11,689)	(3)	(11,686)				(11,689)
Stock based compensation	5,282		5,282				5,282
Other transactions with noncontrolling interests						1,002	1,002
Disposal of noncontrolling interest of business sold						(60,089)	(60,089)
Contributions from noncontrolling interests						3,368	3,368
Distributions to noncontrolling interests						(5,497)	(5,497)
BALANCE at Mar. 31, 2020	3,531,502	$ 1,589	$ 3,960,123	$ (881,574)	451,364	$ 134,021	3,665,523
Increase (Decrease) in Stockholders' Equity
Cumulative effect of accounting standard adoption	$ (87,787)				$ (87,787)		$ (87,787)

Discontinued Operations, Goodwill and Intangible Assets - Significant components included in our Consolidated Statement of Cash Flows (Details) - Disposal Group as held for sale - Management Services - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Depreciation and amortization:
Property and equipment		$ 6.0	$ 4.6	$ 13.7
Intangible assets and capitalized debt issuance costs	$ 18.7	16.5	31.5	32.9
Payments for capital expenditures	$ (6.0)	$ (5.0)	$ (14.2)	$ (9.2)

Leases (Tables)

6 Months Ended

Mar. 31, 2020

Leases

Schedule of components of lease expenses


	Three Months Ended		Six Months Ended
	March 31, 2020		March 31, 2020
	(in millions)
Operating lease cost	$	48.8	$	95.4
Finance lease cost
Amortization of right-of-use assets		5.1		9.7
Interest on lease liabilities		0.5		1.0
Variable lease cost		8.8		18.3
Short-term lease cost		2.4		5.8
Total lease cost	$	65.6	$	130.2

Schedule of additional balance sheet information related to leases


(in millions except as noted)	Balance Sheet Classification	March 31, 2020
Assets:
Operating lease assets	Operating lease right-of-use assets	$	648.6
Finance lease assets	Property and equipment – net		52.5
Total lease assets		$	701.1

Liabilities:
Current:
Operating lease liabilities	Accrued expenses and other current liabilities	$	168.7
Finance lease liabilities	Current portion of long-term debt		19.5
Total current lease liabilities			188.2
Non-current:
Operating lease liabilities	Operating lease liabilities, noncurrent		738.0
Finance lease liabilities	Long-term debt		41.6
Total non-current lease liabilities		$	779.6


	March 31, 2020
Weighted average remaining lease term (in years):
Operating leases	7.5
Finance leases	3.1
Weighted average discount rates:
Operating leases	4.6	%
Finance leases	4.3	%

Schedule of additional cash flow information related to leases


	Six Months Ended
	March 31, 2020
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	110.0
Operating cash flows from finance leases		1.0
Financing cash flows from finance leases		8.8
Right-of-use assets obtained in exchange for new operating leases		55.7
Right-of-use assets obtained in exchange for new finance leases		13.5

Schedule of total remaining lease payments under the Company's operating and Finance leases


	Operating Leases		Finance Leases
Fiscal Year	(in millions)
2020 (six months remaining)	$	108.2	$	11.3
2021		189.0		21.4
2022		159.0		17.9
2023		125.8		11.5
2024		102.0		3.7
Thereafter		397.9		1.6
Total lease payments	$	1,081.9	$	67.4
Less: Amounts representing interest	$	(175.2)	$	(6.3)
Total lease liabilities	$	906.7	$	61.1

Discontinued Operations, Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2020	Sep. 30, 2019
Identifiable intangible assets with finite useful lives
Intangible Assets, Net	$ 87,591	$ 99,636
Backlog and customer relationships
Identifiable intangible assets with finite useful lives
Gross Amount	661,700	661,400
Accumulated Amortization	(574,100)	(561,800)
Intangible Assets, Net	$ 87,600	$ 99,600
Backlog and customer relationships \| Minimum
Identifiable intangible assets with finite useful lives
Amortization Period	1 year
Backlog and customer relationships \| Maximum
Identifiable intangible assets with finite useful lives
Amortization Period	11 years

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2018	Mar. 31, 2020	Mar. 31, 2019
Income Taxes
Effective tax rate (as a percent)		29.70%	(46.70%)
Federal statutory rate (as a percent)		21.00%	21.00%
Income tax expense nondeductible Costs		$ 13.3
Tax expense related to Foreign residual income		8.8
State income tax expense		5.4	$ 5.8
Income tax credits and incentives		15.2	11.5
Valuation allowance on foreign tax credits	$ 38.1
Net benefit from Tax Cuts and Jobs Acts of 2017			$ 38.1
Gross book-tax differences from non-U.S. subsidiaries		$ 1,700.0

Basis of Presentation (Details) - USD ($) $ in Billions	6 Months Ended
Basis of Presentation (Details) - USD ($) $ in Billions	Mar. 31, 2020	Jan. 31, 2020
Minimum
Length of fiscal year	364 days
Maximum
Length of fiscal year	371 days
Disposal Group as held for sale \| Management Services
Total consideration		$ 2.4

Joint Ventures and Variable Interest Entities - Equity in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Financial Information
Equity in earnings of joint ventures	$ 13,505	$ 16,600	$ 23,433	$ 23,232
Unconsolidated Joint Ventures \| Pass through joint ventures
Financial Information
Equity in earnings of joint ventures			17,800	16,000
Unconsolidated Joint Ventures \| Other joint ventures
Financial Information
Equity in earnings of joint ventures			$ 5,600	$ 7,200

Derivative Financial Instruments and Fair Value Measurements - Cash Flow Hedges (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2019
Interest Rate Swap February 2021 \| AUD
Derivative financial instruments
Notional Amount		$ 200.0
Fixed Rate (as a percent)		2.19%
Interest Rate Swap September 2022 \| CAD
Derivative financial instruments
Notional Amount		$ 400.0
Fixed Rate (as a percent)		2.49%
Interest Rate Swap February 2023 \| USD
Derivative financial instruments
Notional Amount	$ 200.0	$ 200.0
Fixed Rate (as a percent)	2.60%	2.60%

Discontinued Operations, Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2020

Discontinued Operations, Goodwill and Intangible Assets

Discontinued Operations, Goodwill and Intangible Assets

3. Discontinued Operations, Goodwill and Intangible Assets

On October 12, 2019, the Company entered into a purchase and sale agreement with Maverick Purchaser Sub, LLC (“Purchaser”), an affiliate of American Securities LLC and Lindsay Goldberg LLC. Per the terms of that agreement, the Company agreed to transfer the assets and liabilities constituting its Management Services business to the Purchaser. The transaction with the Purchaser closed on January 31, 2020. The Company expects to receive total cash consideration of $2.25 billion and contingent consideration of approximately $120 million attributable to certain claims related to prior work and engagements. As a result of the sale, the Company recognized a pre-tax gain of $147.0 million, which was included in the net income from discontinued operations in the Consolidated Statement of Operations for the three-month period ending March 31, 2020.

Additionally, in the first quarter of fiscal 2020, management approved a plan to dispose via sale the Company’s self-perform at-risk construction businesses within the next year. These businesses include the Company’s civil infrastructure, power, and oil and gas construction businesses that were previously reported in the Company’s Construction Services segment. After consideration of the relevant facts, the Company concluded the assets and liabilities of its Management Services business and its self-perform at-risk construction businesses met the criteria for classification as held for sale. Additionally, the Company concluded the actual and proposed disposal activities

represented a strategic shift that will have a major effect on the Company’s operations and financial results and qualified for presentation as discontinued operations in accordance with ASC 205-20. Accordingly, the financial results of the Management Services business and the self-perform at-risk construction businesses are presented in the Consolidated Statement of Operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of these businesses are presented in the Consolidated Balance Sheet as assets and liabilities held for sale for both periods presented. Interest expense allocated to discontinued operations represents interest expenses for the discontinued operations’ finance leases and term loans, which were required to be settled upon the sale of the Management Services business.

During the second quarter of fiscal 2020, the Company identified indicators of impairment for the self-perform at-risk construction business. Specifically, the Company's forecast for its Oil and Gas business decreased significantly from the prior period due primarily to the volatility in global oil prices, which negatively impacted forecasts for future revenues and earnings. As a result, the Company assessed the Oil and Gas business for impairment and determined the fair value of the disposal group was lower than its carrying value. Fair value was estimated using Level 3 inputs, such as forecasted cash flows. Accordingly, the Company recorded impairment losses for that business's goodwill of approximately $83.6 million and intangible assets of approximately $5.7 million. These impairment losses were recorded in net income from discontinued operations on the Consolidated Statement of Operations.

The following table represents summarized balance sheet information of assets and liabilities held for sale (in millions):


	March 31,		September 30,
	2020		2019

Cash and cash equivalents	$	131.3	$	194.7
Receivables and contract assets		646.5		1,326.6
Other		22.0		112.0
Current assets held for sale	$	799.8	$	1,633.3

Property and equipment, net	$	113.0	$	153.8
Goodwill		—		1,798.5
Other		225.7		364.7
Non-current assets held for sale	$	338.7	$	2,317.0

Accounts payable and accrued expenses	$	448.7	$	1,056.0
Contract liabilities		78.6		88.9
Other		24.6		18.8
Current liabilities held for sale	$	551.9	$	1,163.7

Long term liabilities held for sale	$	97.1	$	314.0

The following table represents summarized income statement information of discontinued operations (in millions):


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019

Revenue	$	811.5	$	1,627.4	$	2,314.3	$	3,308.6
Cost of revenue		882.5		1,576.9		2,356.0		3,210.9
Gross (loss) profit		(71.0)		50.5		(41.7)		97.7
Equity in earnings of joint ventures		(21.7)		9.4		(16.9)		15.3
Gain on disposal activities		147.0		—		147.0		—
Transaction costs		(41.4)		—		(41.4)		—
Impairment of goodwill and intangibles assets		(89.3)		—		(89.3)		—
(Loss) income from operations		(76.4)		59.9		(42.3)		113.0
Other income		0.4		0.4		1.8		1.2
Interest expense		(25.9)		(16.5)		(38.7)		(33.3)
(Loss) income before taxes		(101.9)		43.8		(79.2)		80.9
Income tax expense		28.8		8.6		33.4		17.5
Net (loss) income from discontinued operations	$	(130.7)	$	35.2	$	(112.6)	$	63.4

The significant components included in the Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions):


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2020		2019		2020		2019

Depreciation and amortization:
Property and equipment	$	—	$	6.0	$	4.6	$	13.7
Intangible assets and capitalized debt issuance costs	$	18.7	$	16.5	$	31.5	$	32.9
Payments for capital expenditures	$	(6.0)	$	(5.0)	$	(14.2)	$	(9.2)

The changes in the carrying value of goodwill by reportable segment for the six months ended March 31, 2020 were as follows:


			Foreign
	September 30,		Exchange		March 31,
	2019		Impact		2020
	(in millions)
Americas	$	2,623.0	$	(9.9)	$	2,613.1
International		853.8		(20.0)		833.8
Total	$	3,476.8	$	(29.9)	$	3,446.9

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives as of March 31, 2020 and September 30, 2019, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows:


	March 31, 2020						September 30, 2019
	Gross		Accumulated		Intangible		Gross		Accumulated		Intangible		Amortization
	Amount		Amortization		Assets, Net		Amount		Amortization		Assets, Net		Period
	(in millions)												(years)
Backlog and customer relationships	$	661.7	$	(574.1)	$	87.6	$	661.4	$	(561.8)	$	99.6	1	-	11

Amortization expense of acquired intangible assets included within cost of revenue was $12.3 million and $12.7 million for the six months ended March 31, 2020 and 2019, respectively. The following table presents estimated amortization expense of existing intangible assets for the remainder of fiscal 2020 and for the succeeding years:


Fiscal Year	(in millions)
2020 (six months remaining)	$	11.3
2021		20.1
2022		19.3
2023		18.5
2024		17.4
Thereafter		1.0
Total	$	87.6

New Accounting Pronouncements and Changes in Accounting (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Oct. 01, 2019	Sep. 30, 2019	Oct. 01, 2018
New Accounting Pronouncements and Changes in Accounting
Adjustment to retained earnings	$ 451,364		$ 599,548
Accounting Standards Update 2014-09
New Accounting Pronouncements and Changes in Accounting
Adjustment to retained earnings				$ (7,000)
Accounting Standards Update 2016-02
New Accounting Pronouncements and Changes in Accounting
Adjustment to retained earnings		$ (87,800)

Leases - Additional cash flow information (Details) $ in Millions	6 Months Ended
	Mar. 31, 2020 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 110.0
Operating cash flows from finance leases	1.0
Financing cash flows from finance leases	8.8
Right-of-use assets obtained in exchange for new operating leases	55.7
Right-of-use assets obtained in exchange for new finance leases	$ 13.5

Share-based Payments (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Stock options, Weighted Average Exercise Price
Vesting period	3 years
Recognized compensation expense	$ 26.5	$ 31.8
Unrecognized compensation expense	$ 59.8		$ 74.6
Employee Stock Option
Shares of stock under options
Balance at the beginning of the period (in shares)	0.1	0.6
Options forfeited or expired ( in shares)		(0.5)
Balance at the end of the period (in shares)	0.1	0.1
Vested and expected to vest in the future at the end of the period (in shares)	0.1	0.1
Stock options, Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share)	$ 31.62	$ 31.62
Options forfeited or expired (in dollars per share)		31.62
Balance at the end of the period (in dollars per share)	31.62	31.62
Vested and expected to vest in the future at the end of the period (in dollars per share)	$ 31.62	31.62
Performance Earnings Program
Stock options, Weighted Average Exercise Price
Vesting period	3 years
Weighted average grant-date fair value of stock options granted (in dollars per share)	$ 43.02	27.51
Restricted Stock Units (RSUs)
Stock options, Weighted Average Exercise Price
Weighted average grant-date fair value of stock options granted (in dollars per share)	$ 42.27	$ 27.67

Share-based Payments (Tables)

6 Months Ended

Mar. 31, 2020

Share-based Payments

Schedule of stock option activity


	2020			2019
	Shares of stock	Weighted average		Shares of stock	Weighted average
	under options	exercise price		under options	exercise price
	(in millions)			(in millions)
Outstanding at September 30	0.1	$	31.62	0.6	$	31.62
Options granted	—		—	—		—
Options exercised	—		—	—		—
Options forfeited or expired	—		—	(0.5)		31.62
Outstanding at March 31	0.1		31.62	0.1		31.62

Vested and expected to vest in the future as of March 31	0.1	$	31.62	0.1	$	31.62

Joint Ventures and Variable Interest Entities

6 Months Ended

Mar. 31, 2020

Joint Ventures and Variable Interest Entities

Joint Ventures and Variable Interest Entities

5. Joint Ventures and Variable Interest Entities

The Company’s joint ventures provide architecture, engineering, program management, construction management, operations and maintenance services, and invest in real estate projects. 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 representatives from the joint venture partners. The joint venture executive committee normally provides management oversight and controls decisions which could have a significant impact on the joint venture.

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. For consolidated joint ventures of this type, the Company records the entire amount of the services performed and the costs associated with these services, including the services provided by the other joint venture partners, in the Company’s result of operations. 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.

The Company follows guidance on the consolidation of variable interest entities (VIEs) that 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 that indicate a party has the power to direct the activities that most significantly impact the joint venture’s 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 analyzes its joint ventures and classifies them as either:

●

a VIE that must be consolidated because the Company is the primary beneficiary or the joint venture is not a VIE and 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 and is treated as an equity method investment 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.

As part of the above analysis, if it is determined that the Company has the power to direct the activities that most significantly impact the joint venture’s economic performance, the Company considers whether or not it has the obligation to absorb losses or rights to receive benefits of the VIE that could potentially be significant to the VIE.

Contractually required support provided to the Company’s joint ventures is further discussed in Note 15.

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


	March 31,
	2020		September 30,
	(unaudited)		2019
	(in millions)
Current assets	$	558.9	$	581.3
Non-current assets		77.1		75.4
Total assets	$	636.0	$	656.7

Current liabilities	$	416.5	$	432.8
Non-current liabilities		1.5		—
Total liabilities		418.0		432.8
Total AECOM equity		129.6		137.9
Noncontrolling interests		88.4		86.0
Total owners’ equity		218.0		223.9
Total liabilities and owners’ equity	$	636.0	$	656.7

Total revenue of the consolidated joint ventures was $436.3 million and $584.7 million for the six months ended March 31, 2020 and 2019, 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, as derived from their unaudited financial statements, is as follows:


	March 31,		September 30,
	2020		2019
	(in millions)
Current assets	$	1,153.1	$	1,133.5
Non-current assets		1,049.8		904.5
Total assets	$	2,202.9	$	2,038.0

Current liabilities	$	1,069.8	$	1,115.5
Non-current liabilities		107.2		182.3
Total liabilities		1,177.0		1,297.8
Joint ventures’ equity		1,025.9		740.2
Total liabilities and joint ventures’ equity	$	2,202.9	$	2,038.0

AECOM’s investment in joint ventures	$	256.9	$	256.1


	Six Months Ended
	March 31,		March 31,
	2020		2019
	(in millions)
Revenue	$	1,602.2	$	1,574.4
Cost of revenue		1,579.4		1,522.7
Gross profit	$	22.8	$	51.7
Net income	$	21.9	$	51.4

Summary of AECOM’s equity in earnings of unconsolidated joint ventures is as follows:


	Six Months Ended
	March 31,		March 31,
	2020		2019
	(in millions)
Pass through joint ventures	$	17.8	$	16.0
Other joint ventures		5.6		7.2
Total	$	23.4	$	23.2

Discontinued Operations, Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Discontinued Operations, Goodwill and Intangible Assets
Amortization expense	$ 12,300	$ 12,700
Estimated amortization expense for the succeeding years
2020 (six months remaining)	11,300
2021	20,100
2022	19,300
2023	18,500
2024	17,400
Thereafter	1,000
Intangible Assets, Net	$ 87,591		$ 99,636

Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Reportable Segments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2019
Summarized financial information concerning the Company's reportable segments
Revenue	$ 3,245,737	$ 3,412,605	$ 6,481,347	$ 6,768,943
Gross profit	168,813	144,837	334,613	268,233
Equity in earnings of joint ventures	13,505	16,600	23,433	23,232
General and administrative expenses	(41,037)	(37,426)	(84,651)	(73,333)
Restructuring costs	(31,213)	(15,875)	(76,138)	(79,170)
Operating income (loss)	110,068	108,136	197,257	138,962
Total assets	13,115,346		13,115,346		$ 14,550,908
Total
Summarized financial information concerning the Company's reportable segments
Revenue	3,245,700	3,412,600	6,481,300	6,768,900
Gross profit	168,800	144,800	334,600	268,200
Equity in earnings of joint ventures	13,500	16,600	23,400	23,200
General and administrative expenses	(41,000)	(37,400)	(84,600)	(73,200)
Restructuring costs	(31,200)	(15,900)	(76,100)	(79,200)
Operating income (loss)	$ 110,100	$ 108,100	$ 197,300	$ 139,000
Gross profit as a % of revenue	5.20%	4.20%	5.20%	4.00%
Corporate
Summarized financial information concerning the Company's reportable segments
General and administrative expenses	$ (39,200)	$ (35,700)	$ (80,400)	$ (69,900)
Restructuring costs	(31,200)	(15,900)	(76,100)	(79,200)
Operating income (loss)	(70,400)	(51,600)	(156,500)	(149,100)
Total assets	1,463,800		1,463,800		718,400
Americas
Summarized financial information concerning the Company's reportable segments
Revenue	2,475,700	2,576,500	4,927,700	5,136,900
Gross profit	135,600	126,700	275,100	233,900
Equity in earnings of joint ventures	5,400	1,800	11,700	8,100
Operating income (loss)	141,000	$ 128,500	286,800	$ 242,000
Total assets	$ 7,863,500		$ 7,863,500		7,437,300
Gross profit as a % of revenue	5.50%	4.90%	5.60%	4.60%
International
Summarized financial information concerning the Company's reportable segments
Revenue	$ 769,500	$ 834,600	$ 1,552,600	$ 1,626,600
Gross profit	32,700	16,600	58,500	28,900
Equity in earnings of joint ventures	3,100	5,100	6,000	7,900
Operating income (loss)	35,800	$ 21,700	64,500	$ 36,800
Total assets	$ 2,442,300		$ 2,442,300		2,247,100
Gross profit as a % of revenue	4.20%	2.00%	3.80%	1.80%
AECOM Capital
Summarized financial information concerning the Company's reportable segments
Revenue	$ 500	$ 1,500	$ 1,000	$ 5,400
Gross profit	500	1,500	1,000	5,400
Equity in earnings of joint ventures	5,000	9,700	5,700	7,200
General and administrative expenses	(1,800)	(1,700)	(4,200)	(3,300)
Operating income (loss)	3,700	$ 9,500	2,500	$ 9,300
Total assets	$ 207,200		$ 207,200		$ 197,800

Other Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Sep. 30, 2019
Accrued expenses and other current liabilities
Accrued salaries and benefits	$ 690,000		$ 690,000			$ 681,500
Accrued contract costs	1,050,000		1,050,000			927,100
Other accrued expenses	464,400		464,400			269,700
Total accrued expenses	2,204,433		2,204,433			1,878,319
Accounts receivable-net	2,888,939		2,888,939			2,869,216
Restructuring costs	31,213	$ 15,875	76,138	$ 79,170
Accrued restructuring expenses	40,300		40,300
Minimum
Accrued expenses and other current liabilities
Estimated restructuring costs					$ 160,000
Maximum
Accrued expenses and other current liabilities
Estimated restructuring costs					$ 190,000
Severance and personnel costs
Accrued expenses and other current liabilities
Restructuring costs			68,900	57,100
Real estate costs
Accrued expenses and other current liabilities
Restructuring costs			7,200	$ 22,100
Professional liability accrual
Accrued expenses and other current liabilities
Accrued contract costs	$ 544,700		$ 544,700			$ 536,600