Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2020 | Nov. 12, 2020 | Mar. 27, 2020 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 30, 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 | 300 South Grand Avenue, 9th Floor | ||
Entity Address, City or Town | LosĀ Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90071 | ||
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 | 150,763,791 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 4.5 | ||
Current Fiscal Year End Date | --09-30 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000868857 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,599,688 | $ 777,476 |
Cash in consolidated joint ventures | 108,644 | 108,163 |
Total cash and cash equivalents | 1,708,332 | 885,639 |
Accounts receivable-net | 2,865,888 | 2,869,216 |
Contract assets | 1,536,389 | 1,581,806 |
Prepaid expenses and other current assets | 667,393 | 515,593 |
Current assets held for sale | 716,727 | 1,633,302 |
Income taxes receivable | 35,637 | 49,089 |
TOTAL CURRENT ASSETS | 7,530,366 | 7,534,645 |
PROPERTY AND EQUIPMENT-NET | 381,672 | 405,605 |
DEFERRED TAX ASSETS-NET | 357,318 | 288,949 |
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | 229,312 | 256,131 |
GOODWILL | 3,484,221 | 3,476,813 |
INTANGIBLE ASSETS-NET | 76,917 | 99,636 |
OTHER NON-CURRENT ASSETS | 160,036 | 172,134 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 652,115 | |
NON-CURRENT ASSETS HELD FOR SALE | 126,994 | 2,316,995 |
TOTAL ASSETS | 12,998,951 | 14,550,908 |
CURRENT LIABILITIES: | ||
Short-term debt | 223 | 47,835 |
Accounts payable | 2,352,144 | 2,410,838 |
Accrued expenses and other current liabilities | 2,211,734 | 1,878,319 |
Income taxes payable | 47,103 | 59,541 |
Contract liabilities | 988,881 | 851,040 |
Current liabilities held for sale | 469,718 | 1,163,654 |
Current portion of long-term debt | 20,651 | 50,527 |
TOTAL CURRENT LIABILITIES | 6,090,454 | 6,461,754 |
OTHER LONG-TERM LIABILITIES | 162,784 | 266,304 |
OPERATING LEASE LIABILITIES | 745,287 | |
Long-term liabilities held for sale | 98,793 | 313,962 |
DEFERRED TAX LIABILITY-NET | 3,491 | 4,511 |
PENSION BENEFIT OBLIGATIONS | 443,462 | 387,042 |
LONG-TERM DEBT | 2,041,136 | 3,217,985 |
TOTAL LIABILITIES | 9,585,407 | 10,651,558 |
COMMITMENTS AND CONTINGENCIES (Note 18) | ||
AECOM STOCKHOLDERS' EQUITY: | ||
Common stock-authorized, 300,000,000 shares of $0.01 par value as of September 30, 2020 and 2019; issued and outstanding 157,482,983 and 157,044,687 shares as of September 30, 2020 and 2019, respectively | 1,570 | 1,575 |
Additional paid-in capital | 4,035,414 | 3,953,650 |
Accumulated other comprehensive loss | (918,674) | (864,197) |
Retained earnings | 174,248 | 599,548 |
TOTAL AECOM STOCKHOLDERS' EQUITY | 3,292,558 | 3,690,576 |
Noncontrolling interests | 120,986 | 208,774 |
TOTAL STOCKHOLDERS' EQUITY | 3,413,544 | 3,899,350 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 12,998,951 | $ 14,550,908 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 | 157,044,687 | 157,482,983 |
Common stock, outstanding shares | 157,044,687 | 157,482,983 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Operations | |||
Revenue | $ 13,239,976 | $ 13,642,455 | $ 13,878,316 |
Cost of revenue | 12,530,416 | 13,030,800 | 13,399,283 |
Gross profit | 709,560 | 611,655 | 479,033 |
Equity in earnings of joint ventures | 48,781 | 49,320 | 49,357 |
General and administrative expenses | (188,535) | (148,123) | (135,787) |
Restructuring costs | (188,345) | (95,446) | |
Gain on disposal activities | 3,590 | ||
Impairment of long-lived assets | (24,900) | ||
Income from operations | 381,461 | 396,096 | 392,603 |
Other income | 11,056 | 14,556 | 20,628 |
Interest expense | (159,914) | (161,482) | (201,023) |
Income from continuing operations before taxes | 232,603 | 249,170 | 212,208 |
Income tax expense (benefit) for continuing operations | 45,753 | 13,498 | (3,494) |
Net income from continuing operations | 186,850 | 235,672 | 215,702 |
Net loss from discontinued operations | (340,591) | (419,662) | (18,575) |
Net (loss) income | (153,741) | (183,990) | 197,127 |
Net income attributable to noncontrolling interests from continuing operations | (16,398) | (24,710) | (20,197) |
Net income attributable to noncontrolling interests from discontinued operations | (16,231) | (52,350) | (40,462) |
Net income attributable to noncontrolling interests | (32,629) | (77,060) | (60,659) |
Net income attributable to AECOM from continuing operations | 170,452 | 210,962 | 195,505 |
Net loss attributable to AECOM from discontinued operations | (356,822) | (472,012) | (59,037) |
Net (loss) income attributable to AECOM | $ (186,370) | $ (261,050) | $ 136,468 |
Net (loss) income attributable to AECOM per share: | |||
Basic continuing operations per share | $ 1.07 | $ 1.34 | $ 1.23 |
Basic discontinued operations per share | (2.24) | (3) | (0.37) |
Basic earnings per share | (1.17) | (1.66) | 0.86 |
Diluted continuing operations per share | 1.06 | 1.32 | 1.20 |
Diluted discontinued operations per share | (2.22) | (2.95) | (0.36) |
Diluted earnings per share | $ (1.16) | $ (1.63) | $ 0.84 |
Weighted average shares outstanding: | |||
Basic (in shares) | 159,005 | 157,044 | 159,101 |
Diluted (in shares) | 161,292 | 159,684 | 162,261 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net (loss) income | $ (153,741) | $ (183,990) | $ 197,127 |
Other comprehensive (loss) income, net of tax: | |||
Net unrealized gain (loss) on derivatives, net of tax | 4,094 | (13,972) | 1,693 |
Foreign currency translation adjustments | (18,206) | (46,628) | (82,717) |
Pension adjustments, net of tax | (40,051) | (100,367) | 79,523 |
Other comprehensive (loss) income, net of tax | (54,163) | (160,967) | (1,501) |
Comprehensive (loss) income, net of tax | (207,904) | (344,957) | 195,626 |
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax | (32,943) | (76,960) | (61,827) |
Comprehensive (loss) income attributable to AECOM, net of tax | $ (240,847) | $ (421,917) | $ 133,799 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained EarningsCumulative effect of accounting standard adoption | Retained Earnings | Total AECOM Stockholders' EquityCumulative effect of accounting standard adoption | Total AECOM Stockholders' Equity | Non-Controlling Interests | Cumulative effect of accounting standard adoption | Total |
BALANCE at Sep. 30, 2017 | $ 1,575 | $ 3,733,572 | $ (700,661) | $ 961,640 | $ 3,996,126 | $ 218,560 | $ 4,214,686 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net (loss) income | 136,468 | 136,468 | 60,659 | 197,127 | ||||||
Other comprehensive loss | (2,669) | (2,669) | 1,168 | (1,501) | ||||||
Issuance of stock | 42 | 68,069 | 68,111 | 68,111 | ||||||
Repurchases of stock under stock repurchase program | (40) | (149,960) | (150,000) | (150,000) | ||||||
Repurchases of stock | (8) | (31,093) | (31,101) | (31,101) | ||||||
Proceeds from exercise of options | 1 | 2,749 | 2,750 | 2,750 | ||||||
Stock based compensation | 73,095 | 73,095 | 73,095 | |||||||
Other transactions with noncontrolling interests | (5,012) | (5,012) | ||||||||
Contributions from noncontrolling interests | 7,729 | 7,729 | ||||||||
Distributions to noncontrolling interests | (97,510) | (97,510) | ||||||||
BALANCE at Sep. 30, 2018 | 1,570 | 3,846,392 | (703,330) | 948,148 | 4,092,780 | 185,594 | 4,278,374 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net (loss) income | (261,050) | (261,050) | 77,060 | (183,990) | ||||||
Other comprehensive loss | (160,867) | (160,867) | (100) | (160,967) | ||||||
Issuance of stock | 44 | 66,517 | 66,561 | 66,561 | ||||||
Repurchases of stock | (39) | (23,071) | (75,098) | (98,208) | (98,208) | |||||
Stock based compensation | 63,812 | 63,812 | 63,812 | |||||||
Other transactions with noncontrolling interests | 16,208 | 16,208 | ||||||||
Contributions from noncontrolling interests | 5,069 | 5,069 | ||||||||
Distributions to noncontrolling interests | (75,057) | (75,057) | ||||||||
BALANCE at Sep. 30, 2019 | 1,575 | 3,953,650 | (864,197) | $ (12,452) | 599,548 | $ (12,452) | 3,690,576 | 208,774 | $ (12,452) | 3,899,350 |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net (loss) income | (186,370) | (186,370) | 32,629 | (153,741) | ||||||
Other comprehensive loss | (54,477) | (54,477) | 314 | (54,163) | ||||||
Issuance of stock | 43 | 63,297 | 63,340 | 63,340 | ||||||
Repurchases of stock | (48) | (35,762) | (151,143) | (186,953) | (186,953) | |||||
Stock based compensation | 54,229 | 54,229 | 54,229 | |||||||
Disposal of noncontrolling interest of business sold | (60,089) | (60,089) | ||||||||
Contributions from noncontrolling interests | 9,917 | 9,917 | ||||||||
Distributions to noncontrolling interests | (70,559) | (70,559) | ||||||||
BALANCE at Sep. 30, 2020 | $ 1,570 | $ 4,035,414 | $ (918,674) | $ (87,787) | $ 174,248 | $ (87,787) | $ 3,292,558 | $ 120,986 | $ (87,787) | $ 3,413,544 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net (loss) income | $ (153,741) | $ (183,990) | $ 197,127 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 237,376 | 261,185 | 267,570 |
Equity in earnings of unconsolidated joint ventures | (23,279) | (80,990) | (81,133) |
Distribution of earnings from unconsolidated joint ventures | 90,158 | 65,954 | 118,712 |
Non-cash stock compensation | 54,229 | 63,812 | 73,095 |
Prepayment premium on redemption of unsecured senior notes | 16,986 | 34,504 | |
Impairment of long-lived assets, including goodwill | 336,472 | 615,400 | 168,178 |
Loss on disposal activities | 10,381 | 2,949 | |
Gain on sale of discontinued operations | (161,900) | ||
Foreign currency translation | (31,919) | (19,099) | (48,270) |
Write-off of debt issuance costs | 7,048 | ||
Deferred income tax expense (benefit) | 11,130 | (98,015) | 36,746 |
Other | 32,028 | 5,899 | (472) |
Changes in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable and contract assets | (136,955) | (316,487) | (381,787) |
Prepaid expenses and other assets | (31,815) | (16,576) | (75,980) |
Accounts payable | (192,980) | 251,410 | 474,950 |
Accrued expenses and other current liabilities | 118,441 | 259,572 | 18,474 |
Contract liabilities | 128,312 | 7,559 | 2,729 |
Other long-term liabilities | 37,079 | (48,399) | (39,887) |
Net cash provided by operating activities | 329,622 | 777,616 | 774,553 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from sale of discontinued operations, net of cash disposed | 2,218,866 | ||
Proceeds from purchase price adjustment on business acquisition | 2,203 | ||
Cash acquired from consolidation of joint venture | 7,630 | ||
Proceeds from disposal of business, net of cash disposed | 46,490 | 19,537 | |
Investment in unconsolidated joint ventures | (111,077) | (141,769) | (91,030) |
Return of investment in unconsolidated joint ventures | 28,047 | 22,750 | 105,769 |
Proceeds from sale of investments | 12,392 | 12,365 | 7,174 |
Payments for purchase of investments | (3,223) | (23,492) | |
Proceeds from disposal of property and equipment | 3,800 | 17,291 | 26,401 |
Payments for capital expenditures | (114,591) | (100,664) | (113,279) |
Net cash provided by (used in) investing activities | 2,037,437 | (146,760) | (59,087) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowings under credit agreements | 4,452,078 | 7,700,774 | 8,529,014 |
Repayments of borrowings under credit agreements | (5,568,320) | (7,984,624) | (8,040,262) |
Redemption of unsecured senior notes | (248,522) | (800,000) | |
Prepayment premium on redemption of unsecured senior notes | (16,986) | (34,504) | |
Cash paid for debt issuance costs | (4,228) | (12,181) | |
Proceeds from issuance of common stock | 26,388 | 30,448 | 35,233 |
Proceeds from exercise of stock options | 2,750 | ||
Payments to repurchase common stock | (186,953) | (98,208) | (179,466) |
Net distributions to noncontrolling interests | (60,642) | (69,988) | (89,781) |
Other financing activities | (20,785) | (11,681) | (35,671) |
Net cash used in financing activities | (1,627,970) | (433,279) | (624,868) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (1,194) | (3,956) | (6,227) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 737,895 | 193,621 | 84,371 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,080,354 | 886,733 | 802,362 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 1,818,249 | 1,080,354 | 886,733 |
LESS: CASH AND CASH EQUIVALENTS INCLUDED IN CURRENT ASSETS HELD FOR SALE | (109,917) | (194,715) | (155,240) |
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS AT END OF YEAR | 1,708,332 | 885,639 | 731,493 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest paid | (201,402) | (222,263) | (271,842) |
Net income taxes (paid) refund received | $ (71,031) | $ 2,500 | $ (40,589) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies | |
Significant Accounting Policies | 1. Significant Accounting Policies Organization Fiscal Year Use of Estimates Principles of Consolidation and Presentation Government Contract Matters Audits by the DCAA and other agencies consist of reviews of the Companyās overhead rates, operating systems and cost proposals to ensure that the Company accounted for such costs in accordance with the Cost Accounting Standards of the FAR (CAS). If the DCAA determines the Company has not accounted for such costs consistent with CAS, the DCAA may disallow these costs. There can be no assurance that audits by the DCAA or other governmental agencies will not result in material cost disallowances in the future. Cash and Cash Equivalents Allowance for Doubtful Accounts ā Client typeāfederal or state and local government or commercial client; ā Historical contract performance; ā Historical collection and delinquency trends; ā Client credit worthiness; and ā General economic conditions. Derivative Financial Instruments For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income in stockholdersā equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in current income. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure generated by the re-measurement of certain assets and liabilities denominated in a non-functional currency in a foreign operation is reported in the same manner as a foreign currency translation adjustment. Accordingly, any gains or losses related to these derivative instruments are recognized in current income. Derivatives that do not qualify as hedges are adjusted to fair value through current income. Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturities of these instruments. The carrying amount of the revolving credit facility approximates fair value because the interest rates are based upon variable reference rates. The Companyās fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date. Property and Equipment ten three three Long-Lived Assets Goodwill and Acquired Intangible Assets The Company tests goodwill for impairment annually for each reporting unit in the fourth quarter of the fiscal year and between annual tests, if events occur or circumstances change which suggest that goodwill should be evaluated. Such events or circumstances include significant changes in legal factors and business climate, recent losses at a reporting unit, and industry trends, among other factors. A reporting unit is defined as an operating segment or one level below an operating segment. The Companyās impairment tests are performed at the operating segment level as they represent the Companyās reporting units. During the impairment test, the Company estimates the fair value of the reporting unit using income and market approaches, and compares that amount to the carrying value of that reporting unit. In the event the fair value of the reporting unit is determined to be less than the carrying value, goodwill is impaired, and an impairment loss is recognized equal to the excess, limited to the total amount of goodwill allocated to the reporting unit. See also Note 3. Pension Plans Insurance Reserves Foreign Currency Translation The Company uses foreign currency forward contracts from time to time to mitigate foreign currency risk. The Company limits exposure to foreign currency fluctuations in most of its contracts through provisions that require client payments in currencies corresponding to the currency in which costs are incurred. As a result of this natural hedge, the Company generally does not need to hedge foreign currency cash flows for contract work performed. Noncontrolling Interests Income Taxes |
New Accounting Pronouncements a
New Accounting Pronouncements and Changes in Accounting | 12 Months Ended |
Sep. 30, 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 11. 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 āincurred lossā approach with an āexpected lossā 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 Companyās fiscal year starting October 1, 2020. The Company does not expect that the adoption of this standard will have a material impact 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 (Tax 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 outside of these consolidated financial statements. |
Discontinued Operations, Goodwi
Discontinued Operations, Goodwill, and Intangible Assets | 12 Months Ended |
Sep. 30, 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 (āPurchaserā), 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 received total cash consideration of $2.28 billion inclusive of the receipt in the third quarter of fiscal 2020 of $122.0 million received in connection with a favorable working capital purchase price adjustment 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 $161.9 million. The gain on sale was included in the net loss from discontinued operations in the Consolidated Statements of Operations. Additionally, in the first quarter of fiscal 2020, management approved a plan to dispose via sale the Companyās self-perform at-risk construction businesses within the next year. These businesses include the Companyās civil infrastructure, power, and oil and gas construction businesses that were previously reported in the Companyās 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. The Company concluded the actual and proposed disposal activities represented a strategic shift that will have a major effect on the Companyās operations and financial results and qualified for presentation as discontinued operations in accordance with FASB Accounting Standards Codification (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 Statements of Operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of these businesses not sold as of the balance sheet date are presented in the Consolidated Balance Sheets as assets and liabilities held for sale for both periods presented. Interest expense allocated to discontinued operations represents interest expenses for the discontinued operationsā 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' goodwill of approximately $83.6 million and intangible assets of approximately $5.7 million. These impairment losses were recorded in net loss from discontinued operations on the Consolidated Statements of Operations. During the fourth quarter of fiscal 2020, the Company recorded a $247.2 million loss related to the remeasurement of its self-perform at-risk construction businesses to fair value less cost to sell. Fair value was estimated using Level 3 inputs, such as forecasted cash flows, and Level 2 inputs, including bid prices from potential buyers. The following table represents summarized balance sheet information of assets and liabilities held for sale (in millions): ā ā ā ā ā ā ā ā September 30, September 30, ā ā 2020 ā 2019 ā ā ā ā ā ā ā Cash and cash equivalents ā $ 109.9 ā $ 194.7 Receivables and contract assets ā 544.3 ā 1,326.6 Other ā 62.5 ā 112.0 Current assets held for sale ā $ 716.7 ā $ 1,633.3 ā ā ā ā ā ā ā Property and equipment, net ā $ 119.8 ā $ 153.8 Goodwill ā ā ā 1,798.5 Other ā 254.4 ā 364.7 Write-down of assets to fair value less cost to sell ā ā (247.2) ā ā ā Non-current assets held for sale ā $ 127.0 ā $ 2,317.0 ā ā ā ā ā ā ā Accounts payable and accrued expenses ā $ 394.5 ā $ 1,056.0 Contract liabilities ā 73.6 ā 88.9 Other ā 1.6 ā 18.8 Current liabilities held for sale ā $ 469.7 ā $ 1,163.7 ā ā ā ā ā ā ā Long-term liabilities held for sale ā $ 98.8 ā $ 314.0 ā The following table represents summarized income statement information of discontinued operations (in millions): ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā ā ā ā ā ā Revenue ā $ 3,150.8 ā $ 6,530.9 Cost of revenue ā ā 3,179.2 ā ā 6,329.1 Gross (loss) profit ā ā (28.4) ā ā 201.8 Equity in earnings of joint ventures ā ā (25.5) ā ā 31.7 Gain (loss) on disposal activities ā ā 161.9 ā ā (14.0) Transaction costs ā ā (43.2) ā ā ā Impairment of long-lived assets, including goodwill ā ā (336.5) ā ā (590.5) Loss from operations ā ā (271.7) ā ā (371.0) Other income ā ā 1.8 ā ā 2.5 Interest expense ā ā (40.5) ā ā (64.8) Loss before taxes ā ā (310.4) ā ā (433.3) Income tax (benefit) expense ā ā 30.2 ā ā (13.6) Net loss from discontinued operations ā $ (340.6) ā $ (419.7) ā The significant components included in the Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions): ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā ā ā ā ā ā Depreciation and amortization: $ ā ā $ ā Property and equipment ā ā 4.6 ā ā 26.9 Intangible assets and capitalized debt issuance costs ā ā 26.0 ā ā 66.5 Payments for capital expenditures ā ā (19.6) ā ā (20.1) ā The changes in the carrying value of goodwill by reportable segment for the year ended September 30, 2020 were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Foreign ā ā ā ā September 30, ā Exchange ā September 30, ā ā 2019 ā Impact ā 2020 ā ā (in millions) Americas ā $ 2,618.6 ā $ (1.5) ā $ 2,617.1 International ā 858.2 ā 8.9 ā 867.1 Total ā $ 3,476.8 ā $ 7.4 ā $ 3,484.2 ā The gross amounts and accumulated amortization of the Companyās acquired identifiable intangible assets with finite useful lives as of September 30, 2020 and September 30, 2019, included in intangible assetsānet, in the accompanying consolidated balance sheets, were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā September 30, 2019 ā ā ā ā Gross ā Accumulated ā Intangible ā Gross ā Accumulated ā Intangible ā Amortization ā Amount Amortization Assets, Net Amount Amortization Assets, Net Period ā ā (in millions) ā (years) Backlog and customer relationships ā $ 662.8 ā $ (585.9) ā $ 76.9 ā $ 661.4 ā $ (561.8) ā $ 99.6 1 - 11 ā Amortization expense of acquired intangible assets included within cost of revenue was $24.1 million and $25.2 million for the years ended September 30, 2020 and 2019, respectively. The following table presents estimated amortization expense of existing intangible assets for the succeeding years: ā ā ā ā ā Fiscal Year (in millions) 2021 ā $ 20.3 2022 ā 19.5 2023 ā 18.6 2024 ā 17.3 2025 ā ā 0.7 Thereafter ā 0.5 Total ā $ 76.9 ā |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition | |
Revenue Recognition | 4. Revenue Recognition On October 1, 2018, the Company adopted 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 Companyās revenue and cost of revenue. These subcontractor and other direct costs for the years ended September 30, 2020, 2019 and 2018 were $7.1 billion, $7.4 billion and $7.7 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 Companyās 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 Companyās responsibility. For many of the Companyās 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 Companyās revenues disaggregated by revenue sources: ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā 2020 2019 2018 ā ā (in millions) Cost reimbursable ā $ 5,734.5 ā $ 5,958.2 ā $ 5,440.3 Guaranteed maximum price ā ā 3,896.8 ā 3,962.6 ā 4,673.9 Fixed price ā ā 3,608.7 ā 3.721.7 ā 3,764.1 Total revenue ā $ 13,240.0 ā $ 13,642.5 ā $ 13,878.3 ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā 2020 2019 2018 ā ā (in millions) Americas ā $ 10,138.3 ā $ 10,390.8 ā $ 10,512.3 Europe, Middle East, Africa ā ā 1,620.3 ā 1,752.1 ā 1,816.2 Asia Pacific ā 1,481.4 ā 1,499.6 ā 1,549.8 Total revenue ā $ 13,240.0 ā $ 13,642.5 ā $ 13,878.3 ā As of September 30, 2020, the Company had allocated $18.9 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 $592.7 million and $595.7 million during the years ended September 30, 2020 and 2019, respectively, that was included in contract liabilities as of September 30, 2019 and 2018, respectively. The Companyās 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 Companyās 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 Companyās revenue recognition policy. Net accounts receivable consisted of the following: ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Billed ā $ 2,419.6 ā $ 2,368.2 Contract retentions ā 524.2 ā 557.5 Total accounts receivableāgross ā 2,943.8 ā 2,925.7 Allowance for doubtful accounts ā (77.9) ā (56.5) Total accounts receivableānet ā $ 2,865.9 ā $ 2,869.2 ā Substantially all contract assets as of September 30, 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 $170 million and $110 million as of September 30, 2020 and September 30, 2019, respectively. The asset related to the Deactivation, Demolition, and Removal Project retained from the Purchaser discussed in Note 18 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 as of the balance sheet date based on current and past experience. No single client accounted for more than 10% of the Companyās outstanding receivables at September 30, 2020 and September 30, 2019. The Company sold trade receivables to financial institutions, of which $166.6 million and $91.9 million were outstanding as of September 30, 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 Companyās ongoing involvement is limited to the remittance of customer payments to the financial institutions with respect to the sold trade receivables. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Property and Equipment | 5. Property and Equipment Property and equipment, at cost, consists of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā ā ā ā ā September 30, ā September 30, ā Useful Lives ā 2020 2019 (years) ā ā (in millions) ā ā ā ā Building and land ā $ 11.5 ā $ 11.2 10 - 45 Leasehold improvements ā 343.2 ā 363.5 1 - 20 Computer systems and equipment ā 557.4 ā 582.3 3 - 12 Furniture and fixtures ā 134.8 ā 133.0 3 - 10 Total ā 1,046.9 ā 1,090.0 ā ā ā ā Accumulated depreciation and amortization ā (665.2) ā (684.4) ā ā ā ā Property and equipment, net ā $ 381.7 ā $ 405.6 ā ā ā ā ā Depreciation expense for the fiscal years ended September 30, 2020, 2019 and 2018 were $163.4 million, $137.5 million, and $125.5 million, respectively. Depreciation is calculated using primarily the straight-line method over the estimated useful lives of the assets, or in the case of leasehold improvements and capitalized leases, the lesser of the remaining term of the lease or its estimated useful life. |
Joint Ventures and Variable Int
Joint Ventures and Variable Interest Entities | 12 Months Ended |
Sep. 30, 2020 | |
Joint Ventures and Variable Interest Entities | |
Joint Ventures and Variable Interest Entities | 6. Joint Ventures and Variable Interest Entities The Companyās 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 Companyās joint ventures have no employees and minimal operating expenses. For these joint ventures, the Companyās 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 Companyās result of operations. For certain of these joint ventures where a fee is added by an unconsolidated joint venture to client billings, the Companyās 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 ventureās economic performance, including powers granted to the joint ventureās program manager, powers contained in the joint venture governing board and, to a certain extent, a companyās economic interest in the joint venture. The Company analyzes its joint ventures and classifies them as either: ā 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 ā 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 ventureās 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 Companyās joint ventures is discussed in Note 18. Summary of financial information of the consolidated joint ventures is as follows: ā ā ā ā ā ā ā ā ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Current assets ā $ 536.3 ā $ 581.3 Non-current assets ā 77.0 ā 75.4 Total assets ā $ 613.3 ā $ 656.7 ā ā ā ā ā ā ā Current liabilities ā $ 409.9 ā $ 432.8 Non-current liabilities ā 1.5 ā ā Total liabilities ā 411.4 ā 432.8 Total AECOM equity ā 113.9 ā 137.9 Noncontrolling interests ā 88.0 ā 86.0 Total ownersā equity ā 201.9 ā 223.9 Total liabilities and ownersā equity ā $ 613.3 ā $ 656.7 ā Total revenue of the consolidated joint ventures was $787.6 million, $1,095.2 million, and $1,322.8 million for the years ended September 30, 2020, 2019 and 2018, respectively. The assets of the Companyās 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 financial information of the unconsolidated joint ventures, as derived from their unaudited financial statements, is as follows: ā ā ā ā ā ā ā ā ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Current assets ā $ 1,087.2 ā $ 1,133.5 Non-current assets ā 465.8 ā 904.5 Total assets ā $ 1,553.0 ā $ 2,038.0 ā ā ā ā ā ā ā Current liabilities ā $ 937.1 ā $ 1,115.5 Non-current liabilities ā 58.9 ā 182.3 Total liabilities ā 996.0 ā 1,297.8 Joint venturesā equity ā 557.0 ā 740.2 Total liabilities and joint venturesā equity ā $ 1,553.0 ā $ 2,038.0 ā ā ā ā ā ā ā AECOMās investment in joint ventures ā $ 229.3 ā $ 256.1 ā ā ā ā ā ā ā ā ā ā Twelve Months Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Revenue ā $ 3,058.9 ā $ 2,959.3 Cost of revenue ā 2,993.1 ā 2,876.1 Gross profit ā $ 65.8 ā $ 83.2 Net income ā $ 59.8 ā $ 83.4 ā Summary of AECOMās equity in earnings of unconsolidated joint ventures is as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā ā September 30, ā September 30, ā September 30, ā ā 2020 2019 2018 ā ā ā (in millions) ā Pass through joint ventures ā $ 34.1 ā $ 31.6 ā $ 34.2 ā Other joint ventures ā 14.7 ā 17.7 ā 15.2 ā Total ā $ 48.8 ā $ 49.3 ā $ 49.4 ā ā |
Pension Benefit Obligations
Pension Benefit Obligations | 12 Months Ended |
Sep. 30, 2020 | |
Pension Benefit Obligations | |
Pension Benefit Obligations | 7. 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 employeeās 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 following tables provide reconciliations of the changes in the U.S. and international plansā benefit obligations, reconciliations of the changes in the fair value of assets for the last three years ended September 30, and reconciliations of the funded status as of September 30 of each year. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Change in benefit obligation: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Benefit obligation at beginning of year ā $ 252.9 ā $ 1,311.3 ā $ 232.9 ā $ 1,188.7 ā $ 251.9 ā $ 1,333.4 Service cost ā ā ā 0.6 ā ā ā 0.5 ā ā ā 1.1 Participant contributions ā ā ā 0.3 ā 0.1 ā 0.3 ā 0.2 ā 0.4 Interest cost ā 6.4 ā 22.4 ā 8.6 ā 29.7 ā 7.4 ā 32.0 Benefits and expenses paid ā (16.3) ā (42.9) ā (15.2) ā (41.2) ā (16.6) ā (53.7) Actuarial (gain) loss ā 20.7 ā 82.8 ā 27.8 ā 206.5 ā (10.6) ā (87.7) Plan settlements ā (2.1) ā (4.1) ā (1.3) ā (3.7) ā ā ā (3.0) Plan amendments ā ā ā ā ā ā ā ā ā ā ā 5.2 ā ā 0.6 ā ā ā Plan curtailments ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (0.1) Foreign currency translation (gain) loss ā ā ā 69.8 ā ā ā (74.7) ā ā ā (33.7) Benefit obligation at end of year ā $ 261.6 ā $ 1,440.2 ā $ 252.9 ā $ 1,311.3 ā $ 232.9 ā $ 1,188.7 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Change in plan assets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair value of plan assets at beginning of year ā $ 129.3 ā $ 1,068.8 ā $ 131.4 ā $ 965.9 ā $ 136.5 ā $ 993.1 Actual return on plan assets ā 11.7 ā 59.5 ā 4.5 ā 180.3 ā 4.3 ā 29.3 Employer contributions ā 7.0 ā 27.7 ā 9.8 ā 28.1 ā 7.0 ā 27.8 Participant contributions ā ā ā 0.3 ā 0.1 ā 0.3 ā 0.2 ā 0.4 Benefits and expenses paid ā (16.3) ā (42.9) ā (15.2) ā (41.2) ā (16.6) ā (53.7) Plan settlements ā (2.1) ā (4.1) ā (1.3) ā (3.7) ā ā ā (3.0) Foreign currency translation gain (loss) ā ā ā 56.9 ā ā ā (60.9) ā ā ā (28.0) Fair value of plan assets at end of year ā $ 129.6 ā $ 1,166.2 ā $ 129.3 ā $ 1,068.8 ā $ 131.4 ā $ 965.9 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Reconciliation of funded status: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Funded status at end of year ā $ (132.0) ā $ (274.0) ā $ (123.6) ā $ (242.5) ā $ (101.5) ā $ (222.8) Contribution made after measurement date ā N/A ā N/A ā N/A ā N/A ā N/A ā N/A Net amount recognized at end of year ā $ (132.0) ā $ (274.0) ā $ (123.6) ā $ (242.5) ā $ (101.5) ā $ (222.8) ā The following table sets forth the amounts recognized in the consolidated balance sheets as of September 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Amounts recognized in the consolidated balance sheets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other non-current assets ā $ ā ā $ 44.0 ā $ ā ā $ 28.2 ā $ ā ā $ 19.1 Accrued expenses and other current liabilities ā (6.5) ā ā ā (7.3) ā ā ā (6.3) ā ā Pension benefit obligations ā (125.5) ā (318.0) ā (116.3) ā (270.7) ā (95.2) ā (241.9) Net amount recognized in the balance sheet ā $ (132.0) ā $ (274.0) ā $ (123.6) ā $ (242.5) ā $ (101.5) ā $ (222.8) ā The following table details the reconciliation of amounts in the consolidated statements of stockholdersā equity for the fiscal years ended September 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Reconciliation of amounts in consolidated statements of stockholdersā equity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Prior service (cost) credit ā $ (0.1) ā $ (1.2) ā $ (0.7) ā $ (1.2) ā $ (0.8) ā $ 4.1 Net loss ā (133.5) ā (297.8) ā (123.1) ā (233.0) ā (94.8) ā (186.4) Total recognized in accumulated other comprehensive loss ā $ (133.6) ā $ (299.0) ā $ (123.8) ā $ (234.2) ā $ (95.6) ā $ (182.3) ā The components of net periodic benefit cost other than the service cost component are included in other income (expense) in the consolidated statement of operations. The following table details the components of net periodic benefit cost for the Companyās pension plans for fiscal years ended September 30, 2020, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Components of net periodic benefit cost: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Service costs ā $ ā ā $ 0.6 ā $ ā ā $ 0.5 ā $ ā ā $ 1.1 Interest cost on projected benefit obligation ā 6.4 ā 22.4 ā 8.6 ā 29.7 ā 7.4 ā 32.0 Expected return on plan assets ā (7.0) ā (37.5) ā (9.0) ā (38.1) ā (9.0) ā (43.1) Amortization of prior service costs (credits) ā 0.1 ā 0.1 ā 0.1 ā (0.1) ā 0.1 ā (0.2) Amortization of net loss ā 5.0 ā 8.6 ā 3.9 ā 4.1 ā 4.1 ā 8.2 Curtailment loss recognized ā ā 0.5 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Settlement loss recognized ā 0.6 ā 0.5 ā 0.2 ā 0.8 ā ā ā 0.3 Net periodic benefit cost ā $ 5.6 ā $ (5.3) ā $ 3.8 ā $ (3.1) ā $ 2.6 ā $ (1.7) ā The amount of applicable deferred income taxes included in other comprehensive income arising from a change in net prior service cost and net gain/loss was $15.0 million, $15.9 million, and $15.8 million in the years ended September 30, 2020, 2019 and 2018, respectively. Amounts included in accumulated other comprehensive loss as of September 30, 2020 that are expected to be recognized as components of net periodic benefit cost during fiscal 2021 are (in millions): ā ā ā ā ā ā ā ā ā U.S. Intāl Amortization of prior service cost ā $ ā ā $ (0.1) Amortization of net actuarial losses ā (5.9) ā (8.7) Total ā $ (5.9) ā $ (8.8) ā The table below provides additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Projected benefit obligation ā $ 260.7 ā $ 1,216.6 ā $ 252.5 ā $ 1,141.9 ā $ 232.2 ā $ 1,002.6 Accumulated benefit obligation ā 260.7 ā 1,211.5 ā 252.5 ā 1,132.7 ā 232.2 ā 991.9 Fair value of plan assets ā 129.6 ā 898.5 ā 129.3 ā 871.2 ā 131.3 ā 760.7 ā Funding requirements for each pension plan are determined based on the local laws of the country where such pension plan resides. In certain countries, the funding requirements are mandatory while in other countries, they are discretionary. The Company currently intends to contribute $28.4 million to the international plans in fiscal 2021. The required minimum contributions for U.S. plans are not significant. In addition, the Company may make discretionary contributions. The Company currently intends to contribute $12.2 million to U.S. plans in fiscal 2021. The table below provides the expected future benefit payments, in millions: ā ā ā ā ā ā ā ā Year Ending September 30, U.S. Intāl 2021 ā $ 19.1 ā $ 50.6 2022 ā 18.8 ā 48.6 2023 ā 17.7 ā 50.5 2024 ā 17.6 ā 51.5 2025 ā 17.4 ā 52.6 2026-2030 ā 79.2 ā 286.4 Total ā $ 169.8 ā $ 540.2 ā The underlying assumptions for the pension plans are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) ā Weighted-average assumptions to determine benefit obligation: ā ā ā ā ā ā ā ā ā ā ā ā ā Discount rate 2.25 % 1.67 % 2.94 % 1.81 % 4.12 % 2.91 % Salary increase rate N/A ā 2.68 % N/A ā 2.52 % N/A ā 2.79 % Weighted-average assumptions to determine net periodic benefit cost: ā ā ā ā ā ā ā ā ā ā ā ā ā Discount rate 2.94 % 1.81 % 4.12 % 2.91 % 3.66 % 2.67 % Salary increase rate N/A ā 2.52 % N/A ā 2.79 % N/A ā 2.76 % Expected long-term rate of return on plan assets 7.30 % 4.03 % 7.00 % 4.43 % 7.00 % 4.73 % ā Pension costs are determined using the assumptions as of the beginning of the plan year. The funded status is determined using the assumptions as of the end of the plan year. The following table summarizes the Companyās target allocation for 2020 and pension plan asset allocation, both U.S. and international, as of September 30, 2020 and 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Percentage of Plan Assets ā ā ā ā ā ā as of September 30, ā ā Target Allocations ā 2020 ā 2019 ā U.S. Intāl U.S. Intāl U.S. Intāl Asset Category: ā ā ā ā ā ā ā ā ā ā ā ā ā Equities 45 % 26 % 47 % 26 % 45 % 36 % Debt 43 ā 53 ā 42 ā 54 ā 44 ā 31 ā Cash 2 ā 4 ā 1 ā 4 ā 2 ā 3 ā Property and other 10 ā 17 ā 10 ā 16 ā 9 ā 30 ā Total 100 % 100 % 100 % 100 % 100 % 100 % ā The Companyās domestic and foreign plans seek a competitive rate of return relative to an appropriate level of risk depending on the funded status and obligations of each plan and typically employ both active and passive investment management strategies. The Companyās risk management practices include diversification across asset classes and investment styles and periodic rebalancing toward asset allocation targets. The target asset allocation selected for each plan reflects a risk/return profile that the Company believes is appropriate relative to each planās liability structure and return goals. To develop the expected long-term rate of return on assets assumption, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio and the diversification of the portfolio. This resulted in the selection of a 7.30% and 4.03% weighted-average long-term rate of return on assets assumption for the fiscal year ended September 30, 2020 for U.S. and non-U.S. plans, respectively. As of September 30, 2020, the fair values of the Companyās pension plan assets by major asset categories were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurement as of ā ā ā ā ā ā ā September 30, 2020 ā ā ā ā ā Total ā Quoted ā Significant ā ā ā ā ā ā ā Carrying ā Prices in ā Other ā Significant ā ā ā ā ā Value as of ā Active ā Observable ā Unobservable ā Investments ā ā September 30, ā Markets ā Inputs ā Inputs ā measured at ā 2020 (Level 1) (Level 2) (Level 3) ā NAV ā ā (in millions) Cash and cash equivalents ā $ 50.6 ā $ 20.2 ā $ 30.4 ā $ ā ā $ ā Equity and debt securities ā ā 442.3 ā ā 442.3 ā ā ā ā ā ā ā ā ā Investment funds ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Diversified and equity funds ā 31.5 ā 13.0 ā 15.1 ā 3.4 ā ā Fixed income funds ā 36.2 ā 23.1 ā 13.1 ā ā ā ā Common collective funds ā ā 707.5 ā ā ā ā ā ā ā ā ā ā ā 707.5 Derivative instruments ā ā 27.7 ā ā ā ā ā 27.7 ā ā ā ā ā ā Total ā $ 1,295.8 ā $ 498.6 ā $ 86.3 ā $ 3.4 ā $ 707.5 ā As of September 30, 2019, the fair values of the Companyās pension plan assets by major asset categories were as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurement as of ā ā ā ā ā ā ā ā September 30, 2019 ā ā ā ā ā Total ā Quoted ā Significant ā ā ā ā ā ā ā Carrying ā Prices in ā Other ā Significant ā ā ā ā ā Value as of ā Active ā Observable ā Unobservable ā Investments ā ā September 30, ā Markets ā Inputs ā Inputs ā measured at ā 2019 (Level 1) (Level 2) (Level 3) ā NAV ā ā (in millions) Cash and cash equivalents ā $ 35.7 ā $ 21.1 ā $ 14.6 ā $ ā ā $ ā Equity and debt securities ā ā 115.5 ā ā 115.5 ā ā ā ā ā ā ā ā ā Investment funds ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Diversified and equity funds ā 155.7 ā 141.9 ā 13.8 ā ā ā ā Fixed income funds ā 36.6 ā 21.3 ā 15.3 ā ā ā ā Common collective funds ā ā 668.7 ā ā ā ā ā ā ā ā ā ā ā 668.7 Assets held by insurance company ā 26.8 ā ā ā ā ā 26.8 ā ā Derivative instruments ā ā 159.1 ā ā ā ā ā 159.1 ā ā ā ā ā ā Total ā $ 1,198.1 ā $ 299.8 ā $ 202.8 ā $ 26.8 ā $ 668.7 ā Changes for the year ended September 30, 2020 in the fair value of the Companyās recurring post-retirement plan Level 3 assets are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Actual return Actual return ā ā ā ā ā ā ā ā on plan assets, ā on plan assets, ā ā ā ā ā Change ā ā ā ā September 30, ā relating to ā relating to ā ā ā Transfer ā due to ā ā ā ā ā 2019 ā assets still ā assets sold ā Purchases, ā into / ā exchange ā September 30, ā ā Beginning ā held at ā during the ā sales and ā (out of) ā rate ā 2020 ā ā balance ā reporting date ā period ā settlements ā Level 3 ā changes ā Ending balance ā ā (in millions) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 3 Assets ā $ 26.8 ā $ (0.2) ā $ (2.1) ā $ (25.4) ā $ 3.2 ā $ 1.1 ā $ 3.4 ā Changes for the year ended September 30, 2019, in the fair value of the Companyās recurring post-retirement plan Level 3 assets are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Actual return Actual return ā ā ā ā ā ā ā ā on plan assets, ā on plan assets, ā ā ā ā ā Change ā ā ā ā September 30, ā relating to ā relating to ā ā ā Transfer ā due to ā ā ā ā ā 2018 ā assets still ā assets sold ā Purchases, ā into / ā exchange ā September 30, ā ā Beginning ā held at ā during the ā sales and ā (out of) ā rate ā 2019 ā ā balance ā reporting date ā period ā settlements ā Level 3 ā changes ā Ending balance ā ā (in millions) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 3 Assets ā $ 45.0 ā $ 0.4 ā $ (0.1) ā $ (17.0) ā $ ā ā $ (1.5) ā $ 26.8 ā Cash equivalents are mostly comprised of short-term money-market instruments and are valued at cost, which approximates fair value. For equity investment funds not traded on an active exchange, or if the closing price is not available, the trustee obtains indicative quotes from a pricing vendor, broker, or investment manager. These funds are categorized as Level 2 if the custodian obtains corroborated quotes from a pricing vendor or categorized as Level 3 if the custodian obtains uncorroborated quotes from a broker or investment manager. Fixed income investment funds categorized as Level 2 are valued by the trustee using pricing models that use verifiable observable market data (e.g., interest rates and yield curves observable at commonly quoted intervals), bids provided by brokers or dealers, or quoted prices of securities with similar characteristics. Hedge funds categorized as Level 3 are valued based on valuation models that include significant unobservable inputs and cannot be corroborated using verifiable observable market data. Hedge funds are valued by independent administrators. Depending on the nature of the assets, the general partners or independent administrators use both the income and market approaches in their models. The market approach consists of analyzing market transactions for comparable assets while the income approach uses earnings or the net present value of estimated future cash flows adjusted for liquidity and other risk factors. As of September 30, 2019, there were no material changes to the valuation techniques. Common collective funds are valued based on net asset value (NAV) per share or unit as a practical expedient as reported by the fund manager, multiplied by the number of shares or units held as of the measurement date. Accordingly, these NAV-based investments have been excluded from the fair value hierarchy. These collective investment funds have minimal redemption notice periods and are redeemable daily at the NAV, less transaction fees, without significant restrictions. There are no significant unfunded commitments related to these investments. Multiemployer Pension Plans The Company participates in construction-industry multiemployer pension plans. Generally, the plans provide defined benefits to substantially all employees covered by collective bargaining agreements. Under the Employee Retirement Income Security Act, a contributor to a multiemployer plan is liable, upon termination or withdrawal from a plan, for its proportionate share of a planās unfunded vested liability. The Companyās aggregate contributions to these multiemployer plans were $4.0 million and $7.5 million for the years ended September 30, 2020 and 2019, respectively. At September 30, 2020 and 2019, none of the plans in which the Company participates are individually significant to its consolidated financial statements. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2020 | |
Debt | |
Debt | 8. Debt Debt consisted of the following: ā ā ā ā ā ā ā ā ā ā September 30, ā September 30, ā 2020 2019 ā ā (in millions) 2014 Credit Agreement ā $ 248.5 ā $ 1,182.2 2014 Senior Notes ā ā 797.3 ā ā 800.0 2017 Senior Notes ā ā 997.3 ā ā 1,000.0 URS Senior Notes ā ā ā ā ā 248.1 Other debt ā 41.9 ā 122.2 Total debt ā 2,085.0 ā 3,352.5 Less: Current portion of debt and short-term borrowings ā (20.9) ā (98.3) Less: Unamortized debt issuance costs ā ā (23.0) ā ā (36.2) Long-term debt ā $ 2,041.1 ā $ 3,218.0 ā The following table presents, in millions, scheduled maturities of the Companyās debt as of September 30, 2020: ā ā ā ā ā Fiscal Year ā ā 2021 ā $ 20.9 2022 ā 17.9 2023 ā 244.8 2024 ā 5.1 2025 ā 799.0 Thereafter ā 997.3 Total ā $ 2,085.0 ā 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 borrowersā 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 āConsolidated EBITDAā to increase the allowance for acquisition and integration expenses related to the Companyās acquisition of the URS Corporation (URS) in October 2014. On December 22, 2015, the Credit Agreement was amended to further revise the definition of āConsolidated EBITDAā 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 Companyās 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 Companyās AECOM Capital business. On March 31, 2017, the Credit Agreement was amended to (1) expand the ability of restricted subsidiaries to borrow under āIncremental Term Loans;ā (2) revise the definition of āWorking Capitalā as used in āExcess Cash Flow;ā (3) revise the definitions for āConsolidated EBITDAā and āConsolidated Funded Indebtednessā 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 Companyās 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 Companyās revolving credit facility from $1.05 billion to $1.35 billion and extend its term until March 13, 2023; (4) reduce the Companyās interest rate borrowing costs as follows: (a) the term loan B facility, at the Companyās 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 Companyās 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 Companyās election, Base Rate plus 0.75% or Eurocurrency Rate plus 1.75%, and after the end of the Companyās 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 the 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. On July 30, 2020, the Company drew $248.5 million on its secured delayed draw term loan facility for the purpose of redeeming all of the 2022 URS Senior Notes. 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 Companyās Consolidated Leverage Ratio was 2.7 at September 30, 2020. The Companyās Consolidated Interest Coverage Ratio was 5.0 at September 30, 2020. As of September 30, 2020, the Company was in compliance with the covenants of the Credit Agreement. At September 30, 2020 and 2019, outstanding standby letters of credit totaled $19.0 million and $22.8 million, respectively, under the Companyās revolving credit facilities. As of September 30, 2020 and 2019, the Company had $1,331.0 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 September 30, 2020, the estimated fair value of the 2024 Notes was approximately $863.0 million. The fair value of the 2024 Notes as of September 30, 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. On July 21, 2020, the Company completed a cash tender offer at par for up to $639 million in aggregate principal amount of the 2024 Notes and the 2017 Senior Notes. The Company accepted for purchase all of 2024 Notes validly tendered and not validly withdrawn pursuant to the cash tender offer, amounting to $2.7 million aggregate principal amount of the 2024 Notes at par. The Company made the cash tender offer at par to satisfy obligations under the indentures governing the 2024 Notes and the 2017 Senior Notes relating to the use of certain cash proceeds from its disposition of the Management Services business, which was completed on January 31, 2020. 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 āmake-wholeā 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 September 30, 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 September 30, 2020, the estimated fair value of the 2017 Senior Notes was approximately $1,069.6 million. The fair value of the 2017 Senior Notes as of September 30, 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 āmake wholeā premium as of the redemption date, and accrued and unpaid interest to the redemption date. 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 September 30, 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 remaining $248.5 million principal amount of the 2022 URS Senior Notes were fully redeemed on August 31, 2020 using proceeds from a $248.5 million secured delayed draw term loan facility under the Credit Agreement, at a redemption price that was 106.835% of the principal amount outstanding plus accrued and unpaid interest. The August 31, 2020 redemption resulted in a $17.0 million prepayment premium, which was included in interest expense. Other Debt and Other Items Other debt consists primarily of obligations under capital leases and loans, and unsecured credit facilities. The Companyās 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 September 30, 2020 and 2019, these outstanding standby letters of credit totaled $510.1 million and $470.9 million, respectively. As of September 30, 2020, the Company had $435.3 million available under these unsecured credit facilities. Effective Interest Rate The Companyās average effective interest rate on its total debt, including the effects of the interest rate swap agreements, during the years ended September 30, 2020, 2019 and 2018 was 5.3%, 5.1% and 5.1%, respectively. Interest expense in the consolidated statements of operations included amortization of deferred debt issuance costs for the years ended September 30, 2020, 2019 and 2018 of $5.4 million, $5.0 million, and $12.5 million, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Financial Instruments and Fair Value Measurements | |
Derivative Financial Instruments and Fair Value Measurements | 9. Derivative Financial Instruments and Fair Value Measurements The Company uses certain interest rate derivative contracts to hedge interest rate exposures on the Companyās 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 Companyās 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 Companyās 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 Companyās outstanding interest rate swap agreements were as follows: ā ā ā ā ā ā ā ā ā September 30, 2020 Notional Amount ā Notional Amount ā Fixed ā Expiration Currency (in millions) Rate Date USD ā ā 200.0 ā 2.60 % February 2023 ā ā ā ā ā ā ā ā ā September 30, 2019 Notional Amount ā Notional Amount ā Fixed ā Expiration Currency (in millions) Rate Date AUD ā 200.0 2.19 % February 2021 CAD ā ā 400.0 ā 2.49 % September 2022 USD ā ā 200.0 ā 2.60 % February 2023 ā 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 years ended September 30, 2020, 2019 and 2018. Fair Value Measurements The Companyās non-pension financial assets and liabilities recorded at fair values relate to derivative instruments and were not material at September 30, 2020 or 2019. See Note 17 for accumulated balances and reporting period activities of derivatives related to reclassifications out of accumulated other comprehensive income or loss for the years ended September 30, 2020, 2019 and 2018. Amounts recognized in accumulated other comprehensive loss from the Companyās foreign currency options were immaterial for all years presented. Amounts reclassified from accumulated other comprehensive loss into income from the foreign currency options were immaterial for all years presented. Additionally, there were no material losses recognized in income due to amounts excluded from effectiveness testing from the Companyās interest rate swap agreements. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Sep. 30, 2020 | |
Concentration of Credit Risk | |
Concentration of Credit Risk | 10. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. The Companyās cash balances and short-term investments are maintained in accounts held by major banks and financial institutions located primarily in the U.S., Canada, Europe, Australia, Middle East and Hong Kong. If the Company extends significant credit to clients in a specific geographic area or industry, the Company may experience disproportionately high levels of default if those clients are adversely affected by factors particular to their geographic area or industry. Concentrations of credit risk with respect to trade receivables are limited due to the large number of customers comprising the Companyās customer base, including, in large part, governments, government agencies and quasi-government organizations, and their dispersion across many different industries and geographies. See Note 4 regarding the Companyās foreign revenues. In order to mitigate credit risk, the Company continually reviews the credit worthiness of its major private clients. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | 11. 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. ā 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. ā 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. ā 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. ā ā The components of lease expenses are as follows: ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā ā (in millions) Operating lease cost ā $ 191.6 Finance lease cost: ā ā Amortization of right-of-use assets ā 17.1 Interest on lease liabilities ā 1.9 Variable lease cost ā 36.5 Short-term lease cost ā 19.2 Total lease cost ā $ 266.3 ā Additional balance sheet information related to leases is as follows: ā ā ā ā ā ā ā (in millions except as noted) Balance Sheet Classification Sept 30, 2020 Assets: ā Operating lease assets Operating lease right-of-use assets ā $ 652.1 Finance lease assets Property and equipment ā net ā 29.1 Total lease assets ā $ 681.2 ā ā ā ā ā ā Liabilities: ā ā Current: ā ā Operating lease liabilities Accrued expenses and other current liabilities ā $ 168.4 Finance lease liabilities Current portion of long-term debt ā 9.8 Total current lease liabilities ā 178.2 Non-current: ā ā Operating lease liabilities Operating lease liabilities, noncurrent ā 745.3 Finance lease liabilities Long-term debt ā 22.0 Total non-current lease liabilities ā $ 767.3 ā ā ā ā ā ā Sept 30, 2020 ā Weighted average remaining lease term (in years): ā ā Operating leases 7.3 ā Finance leases 3.3 ā Weighted average discount rates: ā ā Operating leases 4.6 % Finance leases 4.7 % ā Additional cash flow information related to leases is as follows: ā ā ā ā ā ā Fiscal Year Ended ā ā Sept 30, 2020 ā ā (in millions) Cash paid for amounts included in the measurement of lease liabilities: ā Operating cash flows from operating leases ā $ 208.7 Operating cash flows from finance leases ā 1.8 Financing cash flows from finance leases ā 14.7 Right-of-use assets obtained in exchange for new operating leases ā 126.9 Right-of-use assets obtained in exchange for new finance leases ā 26.4 ā Total remaining lease payments under both the Companyās operating and finance leases are as follows: ā ā ā ā ā ā ā ā ā Operating Leases Finance Leases Fiscal Year ā (in millions) 2021 ā $ 212.4 ā $ 10.3 2022 ā 170.7 ā 9.0 2023 ā 140.4 ā 7.6 2024 ā 120.4 ā 5.1 2025 ā 105.4 ā 1.9 Thereafter ā 371.8 ā 0.1 Total lease payments ā $ 1,121.1 ā $ 34.0 Less: Amounts representing interest ā $ (207.4) ā $ (2.2) Total lease liabilities ā $ 913.7 ā $ 31.8 ā |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity | |
Stockholders' Equity | 12. Stockholdersā Equity Common Stock Units Accelerated Share Repurchase |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Sep. 30, 2020 | |
Share-Based Payments | |
Share-Based Payments | 13. Share-Based Payments Defined Contribution Plans Stock Incentive Plans During the three years in the period ended September 30, 2020, option activity was as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Number of ā Weighted ā ā Options ā Average ā (in millions) Exercise Price Balance, September 30, 2017 0.7 ā ā 31.11 Granted ā ā ā ā Exercised (0.1) ā ā 27.79 Cancelled ā ā ā ā Balance, September 30, 2018 0.6 ā ā 31.62 Granted ā ā ā ā Exercised ā ā ā ā Cancelled (0.5) ā ā (31.62) Balance, September 30, 2019 0.1 ā ā 31.62 Granted 0.3 ā ā 38.72 Exercised ā ā ā ā Cancelled ā ā ā ā Balance, September 30, 2020 0.4 ā ā 36.41 Exercisable as of September 30, 2018 ā ā ā N/A Exercisable as of September 30, 2019 0.1 ā ā 31.62 Exercisable as of September 30, 2020 0.1 ā ā 31.62 ā The aggregate intrinsic value of stock options exercised during the year ended September 30, 2018 was $0.9 million. The fair value of the Companyās 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 option on the grant date. The Company uses historical data as a basis to estimate the probability of forfeitures. The weighted average grant-date fair value of stock options granted during the year ended September 30, 2020 was $11.30. 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 dayās closing market price of the Companyās common stock. The weighted average grant date fair value of PEP awards was $42.99, $27.53, and $37.69 during the years ended September 30, 2020, 2019 and 2018, respectively. The weighted average grant date fair value of restricted stock unit awards was $41.90, $27.73, and $36.83 during the years ended September 30, 2020, 2019 and 2018, respectively. Total compensation expense related to these share-based payments including stock options was $54.2 million, $63.8 million, and $73.1 million during the years ended September 30, 2020, 2019 and 2018, respectively. Unrecognized compensation expense related to total share-based payments outstanding as of September 30, 2020 and 2019 was $69.1 million and $74.6 million, respectively, to be recognized on a straight-line basis over the awardsā respective vesting periods which are generally three years. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | 14. Income Taxes Income before income taxes included income from domestic operations of $52.9 million, $133.0 million, and $100.9 million for fiscal years ended September 30, 2020, 2019 and 2018 and income from foreign operations of $179.7 million, $116.2 million, and $111.3 million for fiscal years ended September 30, 2020, 2019 and 2018. Income tax (benefit) expense was comprised of: ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, September 30, ā ā 2020 ā 2019 ā 2018 ā ā (in millions) Current: ā ā ā ā ā ā ā ā ā Federal ā $ 21.8 ā $ (17.3) ā $ (159.7) State ā 12.7 ā 29.8 ā 2.3 Foreign ā 55.7 ā 41.7 ā 51.1 Total current income tax expense (benefit) ā 90.2 ā 54.2 ā (106.3) Deferred: ā ā ā ā ā ā ā ā ā Federal ā (21.8) ā (26.1) ā 119.6 State ā 12.8 ā (24.6) ā 4.1 Foreign ā (35.4) ā 10.0 ā (20.9) Total deferred income tax (benefit) expense ā (44.4) ā (40.7) ā 102.8 Total income tax (benefit) expense ā $ 45.8 ā $ 13.5 ā $ (3.5) ā The major elements contributing to the difference between the U.S. federal statutory rate of 21% for fiscal years ended September 30, 2020 and 2019 and 24.5% for fiscal year ended September 30, 2018, respectively, and the effective tax rate are as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā Amount % Amount % Amount % ā ā (in millions) Tax at federal statutory rate ā $ 48.8 21.0 % $ 52.0 21.0 % $ 52.4 24.5 % State income tax, net of federal benefit ā 8.4 3.6 ā 7.0 2.8 ā (1.3) (0.6) ā Foreign residual income ā ā 39.5 ā 17.0 ā ā 35.8 ā 14.5 ā ā 9.9 ā 4.6 ā Nondeductible costs ā ā 15.8 ā 6.8 ā ā 7.6 ā 3.1 ā ā 2.5 ā 1.2 ā Return to provision ā ā 5.1 ā 2.2 ā ā (0.2) ā (0.1) ā ā (21.2) ā (9.9) ā Foreign tax rate differential ā ā 3.2 ā 1.4 ā ā (3.1) ā (1.3) ā ā (0.7) ā (0.3) ā Income tax credits and incentives ā ā (47.8) ā (20.6) ā ā (44.7) ā (18.1) ā ā (28.6) ā (13.4) ā Valuation allowance ā ā (15.9) ā (6.9) ā ā (26.5) ā (10.7) ā ā 37.8 ā 17.7 ā Change in uncertain tax positions ā ā (8.3) ā (3.6) ā ā 5.6 ā 2.3 ā ā (26.0) ā (12.2) ā Exclusion of tax on non-controlling interests ā ā (3.4) ā (1.5) ā ā (5.3) ā (2.1) ā ā (5.0) ā (2.3) ā Tax exempt income ā ā (5.1) ā (2.2) ā ā (3.9) ā (1.6) ā ā (7.4) ā (3.5) ā Audit settlement ā ā ā ā (4.6) (1.9) ā (27.7) (13.0) ā Impact of changes in tax law ā ā ā ā ā ā ā (1.5) ā (0.6) ā ā 12.5 ā 5.9 ā Other items, net ā ā 5.5 ā 2.5 ā ā (4.7) ā (1.9) ā ā (0.7) ā (0.4) ā Total income tax expense (benefit) ā $ 45.8 19.7 % $ 13.5 5.4 % $ (3.5) (1.7) % ā During fiscal 2020, the Company approved a tax planning strategy and restructured certain operations in Canada which resulted in a release of a valuation allowance related to net operating losses and other deferred tax assets of $31.7 million. The Company is now forecasting the utilization of the net operating losses within the foreseeable future. The new positive evidence was evaluated against any negative evidence to determine the valuation allowance was no longer needed. During fiscal 2018, the Company recorded a valuation allowance of $38.1 million against foreign tax credits related to deferred tax assets in the U.S. In its determination of the realizability of its deferred tax assets, the Company evaluated positive evidence consisting of forecasts of foreign tax credit utilization against future foreign source income, earnings trends over a sustainable period, positive economic conditions in the industries the Company operates in, possible prudent and feasible tax planning strategies (net of costs to implement the tax planning strategies) and actual usage of foreign tax credit carryforwards. The Company also evaluated negative evidence consisting of significant foreign tax credits and U.S. tax law changes that restrict the usage of foreign tax credits. This evaluation was conducted on a tax jurisdictional basis or legal entity basis, as applicable, and based on the weighing of all positive and negative evidence, a determination was made as to the realizability of the deferred tax assets on that same basis. During fiscal 2019, the Company reevaluated the valuation allowance based on positive evidence and negative evidence including new positive evidence related to the issuance of regulations during the first quarter related to The Tax Cuts and Jobs Act During fiscal 2018, President Trump signed what is commonly referred to as the Tax Act into law. The Tax Act reduced the Company's U.S. federal corporate tax rate from 35% to a blended tax rate of 24.5% for its fiscal year ending September 30, 2018 and 21% for fiscal years thereafter, required companies to pay a one-time transition tax on accumulated earnings of foreign subsidiaries, created new taxes on foreign sourced earnings and eliminated or reduced deductions. During fiscal 2018, the Company recorded tax expense of $38.9 million related to the remeasurement of its U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. In addition, the Company released the deferred tax liability and recorded a tax benefit related to foreign subsidiaries for which the undistributed earnings are not intended to be reinvested indefinitely for $79.8 million and accrued $53.4 million of tax expense related to the one-time transition tax. During fiscal 2019, the Company completed the calculation of the total foreign earnings and profits of foreign subsidiaries and recorded a tax benefit of $1.5 million. During fiscal 2018, the Company had a favorable settlement for R&D credits and recorded a tax benefit of $19.9 million. In addition, the Company effectively settled the U.S. federal income tax examination for URS pre-acquisition tax years 2012, 2013 and 2014 and recorded an additional benefit of $27.7 million related to various adjustments. The Company is currently under tax audit in several jurisdictions including the U.S and believe the outcomes which are reasonably possible within the next twelve months, including lapses in statutes of limitations, could result in adjustments, but will not result in a material change in the liability for uncertain tax positions. Generally, the Company would reverse its valuation allowance in a particular tax jurisdiction if the positive evidence examined, such as projected and sustainable earnings or a tax-planning strategy that allows for the usage of the deferred tax asset, is sufficient to overcome significant negative evidence, such as large net operating loss carryforwards or a cumulative history of losses in recent years. In the United States, the valued deferred tax assets have a restricted life or use under relevant tax law and, therefore, it is unlikely that the valuation allowance related to these assets will reverse. In addition, the Company is continually investigating tax planning strategies that, if prudent and feasible, may be implemented to realize a deferred tax asset that would otherwise expire unutilized. The identification and internal/external approval (as relevant) of such a prudent and feasible tax planning strategy could cause a reduction in the valuation allowance. The deferred tax assets (liabilities) are as follows: ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Deferred tax assets: ā ā ā ā ā ā Compensation and benefit accruals not currently deductible ā $ 119.4 ā $ 98.0 Net operating loss carryforwards ā 173.2 ā 132.6 Self-insurance reserves ā 17.6 ā 11.3 Research and experimentation and other tax credits ā 112.9 ā 138.5 Pension liability ā 95.1 ā 78.2 Accrued liabilities ā 303.2 ā 97.2 Capital loss carryforward ā ā 104.8 ā ā ā Other ā 26.0 ā 14.8 Total deferred tax assets ā 952.2 ā 570.6 Deferred tax liabilities: ā ā ā ā ā ā Unearned revenue ā (40.3) ā (53.4) Depreciation and amortization ā (106.7) ā (76.3) Acquired intangible assets ā (24.5) ā (25.1) Investment in subsidiaries ā (10.9) ā (10.9) Right of use assets ā ā (164.9) ā ā ā Contingent consideration ā ā (33.6) ā ā ā Total deferred tax liabilities ā (380.9) ā (165.7) Valuation allowance ā (217.5) ā (120.6) Net deferred tax assets ā $ 353.8 ā $ 284.3 ā As of September 30, 2020 and 2019, the Company has available unused foreign and state net operating loss (NOL) carryforwards of $710.2 million and $505.3 million, respectively, which expire at various dates over the next several years and capital loss carryforwards of $355.7 million which expire in 2025; some foreign NOL carryforwards never expire. In addition, as of September 30, 2020, the Company has unused federal and state research and development credits of $71.2 million and $27.2 million, respectively, and other credits of $14.5 million which expire at various dates over the next several years. As of September 30, 2020 and 2019, gross deferred tax assets were $952.2 million and $570.6 million, respectively. The Company has recorded a valuation allowance of $217.5 million and $120.6 million at September 30, 2020 and 2019, respectively, primarily related to foreign and state net operating loss carryforwards, capital loss carryforwards, tax credits and other deferred tax assets. The Company has performed an assessment of positive and negative evidence, including the nature, frequency, and severity of cumulative financial reporting losses in recent years, the future reversal of existing temporary differences, predictability of future taxable income exclusive of reversing temporary differences of the character necessary to realize the asset, relevant carryforward periods, taxable income in carry-back years if carry-back is permitted under tax law, and prudent and feasible tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset that would otherwise expire. Although realization is not assured, based on the Companyās assessment, the Company has concluded that it is more likely than not that the remaining gross deferred tax asset (exclusive of deferred tax liabilities) of $734.7 million will be realized and, as such, no additional valuation allowance has been provided. The net increase in the valuation allowance of $96.9 million is primarily attributable to an increase in valuation allowances of $71.2 million related to capital losses, partially offset by the release of a valuation allowance of $31.7 million related to net operating losses and other deferred tax assets in Canada, the utilization of $1.5 million of foreign net operating loss carryforwards in the current year and increases in valuation allowances for unbenefitable losses. 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 $1.5 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. As of September 30, 2020 and 2019, the Company had a liability for unrecognized tax benefits, including potential interest and penalties, net of related tax benefit, totaling $65.8 million and $70.1 million, respectively. The gross unrecognized tax benefits as of September 30, 2020 and 2019 were $47.1 million and $55.7 million, respectively, excluding interest, penalties, and related tax benefit. Of the $47.1 million, approximately $29.5 million would be included in the effective tax rate if recognized. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Balance at the beginning of the year ā $ 55.7 ā $ 53.8 Gross increase in current periodās tax positions ā 2.8 ā 2.9 Gross increase in prior yearsā tax positions ā ā ā 0.8 Gross decrease in prior yearsā tax positions ā (7.9) ā (1.0) Decrease due to settlement with tax authorities ā (0.5) ā ā Decrease due to lapse of statute of limitations ā (3.5) ā ā Gross change due to foreign exchange fluctuations ā ā 0.5 ā ā (0.8) Balance at the end of the year ā $ 47.1 ā $ 55.7 ā The Company classifies interest and penalties related to uncertain tax positions within the income tax expense line in the accompanying consolidated statements of operations. As of September 30, 2020, the accrued interest and penalties were $18.9 million and $2.7 million, respectively, excluding any related income tax benefits. At September 30, 2019, the accrued interest and penalties were $20.3 million and $4.3 million, respectively, excluding any related income tax benefits. The Company files income tax returns in numerous tax jurisdictions, including the U.S., and numerous U.S. states and non-U.S. jurisdictions around the world. The statute of limitations varies by jurisdiction in which the Company operates. Because of the number of jurisdictions in which the Company files tax returns, in any given year the statute of limitations in certain jurisdictions may expire without examination within the 12-month period from the balance sheet date. While it is reasonably possible that the total amounts of unrecognized tax benefits could significantly increase or decrease within the next twelve months, an estimate of the range of possible change cannot be made. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Earnings Per Share | 15. 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 periods presented, equity awards excluded from the calculation of potential common shares were not significant. The following table sets forth a reconciliation of the denominators of basic and diluted earnings per share: ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, September 30, September 30, ā ā 2020 ā 2019 ā 2018 ā ā (in millions) Denominator for basic earnings per share 159.0 157.0 159.1 Potential common shares 2.3 2.7 3.2 Denominator for diluted earnings per share 161.3 159.7 162.3 ā |
Other Financial Information
Other Financial Information | 12 Months Ended |
Sep. 30, 2020 | |
Other Financial Information | |
Other Financial Information | 16. Other Financial Information Accrued expenses and other current liabilities consist of the following: ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Accrued salaries and benefits ā $ 675.7 ā $ 681.5 Accrued contract costs ā 1,104.7 ā 927.1 Other accrued expenses ā 431.3 ā 269.7 ā ā $ 2,211.7 ā $ 1,878.3 ā Accrued contract costs above include balances related to professional liability accruals of $596.0 million and $536.6 million as of September 30, 2020 and 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 September 30, 2020 and 2019. The Company did not have material revisions to estimates for contracts where revenue is recognized using the percentage-of-completion method during the twelve months ended September 30, 2020. In the first quarter of fiscal 2019, the Company commenced a restructuring plan to improve profitability. The Company incurred restructuring expenses of $188.3 million, including personnel and other costs of $149.2 million and real estate costs of $39.1 million during the year ended September 30, 2020, of which $56.2 million was accrued and unpaid at September 30, 2020. The Company incurred restructuring expenses of $95.4 million, including personnel and other costs of $73.3 million and real estate costs of $22.1 million during the year ended September 30, 2019, of which $26.5 million was accrued and unpaid at September 30, 2019. In connection with this restructuring plan, the Company evaluated its real estate portfolio to better align with the ongoing business. The Company identified certain long-lived assets that were no longer recoverable, and recorded an impairment of $27.4 million in Impairment of long-lived assets, including goodwill during the fourth quarter of fiscal 2019. Fair value of the long-lived assets was determined primarily using Level 3 inputs, such as discounted cash flows. During the twelve months ended September 30, 2020, the Company applied for subsidies in accordance with various government legislations. The Company recognized $23.2 million during fiscal year 2020 as a reduction to cost of revenues as the expected amount of the subsidy. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 12 Months Ended |
Sep. 30, 2020 | |
Reclassifications out of Accumulated Other Comprehensive Loss | |
Reclassifications out of Accumulated Other Comprehensive Loss | 17. Reclassifications out of Accumulated Other Comprehensive Loss The accumulated balances and reporting period activities for the years ended September 30, 2020, 2019 and 2018 related to reclassifications out of accumulated other comprehensive loss are summarized as follows (in millions): ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Foreign ā ā ā Accumulated ā ā Pension ā Currency ā Loss on ā Other ā ā Related ā Translation ā Derivative ā Comprehensive ā Adjustments Adjustments Instruments Loss Balances at September 30, 2018 ā $ (202.3) ā $ (502.2) ā $ 1.2 ā $ (703.3) Other comprehensive income (loss) before reclassification ā ā (107.2) ā ā (46.5) ā ā (17.2) ā ā (170.9) Amounts reclassified from accumulated other comprehensive loss ā 6.8 ā ā ā 3.2 ā 10.0 Balances at September 30, 2019 ā $ (302.7) ā $ (548.7) ā $ (12.8) ā $ (864.2) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Foreign ā ā ā Accumulated ā ā Pension ā Currency ā Loss on ā Other ā ā Related ā Translation ā Derivative ā Comprehensive ā Adjustments Adjustments Instruments Loss Balances at September 30, 2019 ā $ (302.7) ā $ (548.7) ā $ (12.8) ā $ (864.2) Other comprehensive income (loss) before reclassification ā ā (72.5) ā ā (18.6) ā ā (5.3) ā ā (96.4) Amounts reclassified from accumulated other comprehensive loss ā 32.4 ā ā ā 9.5 ā 41.9 Balances at September 30, 2020 ā $ (342.8) ā $ (567.3) ā $ (8.6) ā $ (918.7) ā |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. 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 Companyās 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 Companyās 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 certain 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 September 30, 2020, the Company was contingently liable in the amount of approximately $529.1 million in issued standby letters of credit and $6.2 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 Companyās registered investment adviser jointly manages and sponsors the AECOM-Canyon Equity Fund, L.P. (the āFundā), in which the Company indirectly holds an equity interest and has an ongoing capital commitment to fund investments. At September 30, 2020, the Company has capital commitments of approximately $22.1 million to the Fund over the next 8 years. In addition, in connection with the investment activities of AECOM Capital, the Company provides guarantees of certain 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 (āFormer Affiliateā) 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. 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 ā2014 Claimsā). 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 ā2019 Claimsā). 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 Affiliateās 2014 Claims. On September 25, 2020, the DOE denied the Former Affiliateās 2019 Claims. The Company intends to appeal these decisions by December 30, 2020. 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 Companyās 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.ās oversight of a stream restoration project for Schoharie County which could result in substantial penalties if calculated under the ECLās 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 stages. 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 Affiliateās control, including client directed changes and delays and the refineryās 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 Companyās Former Affiliate alleging it incurred approximately $79 million in damages due to the Companyās Former Affiliateās project performance. In April 2019, the Companyās Former Affiliate filed and perfected a $132 million construction lien against the refinery 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 Companyās Former Affiliate, the refinery owner crossclaimed against the Companyās Former Affiliate and the subcontractor. In October 2019, following the subcontractorās dismissal of its claims, the Companyās 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 Companyās 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. |
Reportable Segments and Geograp
Reportable Segments and Geographic Information | 12 Months Ended |
Sep. 30, 2020 | |
Reportable Segments and Geographic Information | |
Reportable Segments and Geographic Information | 19. Reportable Segments and Geographic Information 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 Companyās 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 Companyās reportable segments: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā AECOM ā ā ā ā ā ā ā Reportable Segments: Americas International Capital Corporate Total ā ā ā (in millions) Fiscal Year Ended September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenue ā $ 10,131.5 ā $ 3,101.7 ā $ 6.8 ā $ ā ā $ 13,240.0 ā Gross profit ā 580.5 ā 122.2 ā ā 6.9 ā ā ā 709.6 ā Equity in earnings of joint ventures ā 19.8 ā 14.3 ā ā 14.7 ā ā ā 48.8 ā General and administrative expenses ā ā ā ā ā ā (8.6) ā (180.0) ā (188.6) ā Restructuring costs ā ā ā ā ā ā ā ā ā ā ā (188.3) ā ā (188.3) ā Operating income (loss) ā 600.3 ā 136.5 ā ā 13.0 ā (368.3) ā 381.5 ā Segment assets ā 7,929.3 ā 2,454.0 ā ā 198.0 ā 1,573.9 ā ā ā Gross profit as a % of revenue ā 5.7 % 3.9 % ā ā ā ā ā ā 5.4 % ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended September 30, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenue ā $ 10,382.6 ā $ 3,251.7 ā $ 8.2 ā $ ā ā $ 13,642.5 ā Gross profit ā 511.5 ā 91.9 ā ā 8.3 ā ā ā 611.7 ā Equity in earnings of joint ventures ā 17.7 ā 13.9 ā ā 17.7 ā ā ā 49.3 ā General and administrative expenses ā ā ā ā ā ā (5.0) ā (143.2) ā (148.2) ā Restructuring costs ā ā ā ā ā ā ā ā ā ā ā (95.4) ā ā (95.4) ā Gain on disposal activities ā ā ā ā ā 3.6 ā ā ā ā ā ā ā ā 3.6 ā Impairment of long lived assets ā (10.8) ā ā (4.4) ā ā ā ā ā (9.7) ā ā (24.9) ā Operating income (loss) ā 518.4 ā 105.0 ā ā 21.0 ā (248.3) ā 396.1 ā Segment assets ā 7,437.3 ā 2,247.1 ā ā 197.8 ā 718.4 ā ā ā Gross profit as a % of revenue ā ā 4.9 % 2.8 % ā ā ā ā ā ā 4.5 % ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended September 30, 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenue $ 10,512.3 ā $ 3,366.0 ā $ ā ā $ ā ā $ 13,878.3 ā Gross profit ā 403.8 ā 75.2 ā ā ā ā ā ā 479.0 ā Equity in earnings of joint ventures ā 27.1 ā 7.0 ā ā 15.3 ā ā ā 49.4 ā General and administrative expenses ā ā ā ā ā ā (11.2) ā (124.6) ā (135.8) ā Operating income (loss) ā 430.9 ā 82.2 ā ā 4.1 ā (124.6) ā 392.6 ā Segment assets ā 7,119.9 ā 2,353.2 ā ā 140.6 ā 676.9 ā ā ā Gross profit as a % of revenue ā 3.8 % 2.2 % ā ā ā ā ā ā 3.5 % ā Geographic Information: ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, September 30, Long-Lived Assets 2020 2019 2018 ā ā (in millions) Americas ā 3,733.2 ā ā 3,399.1 ā ā 3,469.2 Europe, Middle East, Africa ā 875.8 ā ā 738.8 ā ā 745.8 Asia Pacific ā 375.3 ā 272.4 ā 278.3 Total ā 4,984.3 ā ā 4,410.3 ā ā 4,493.3 ā Long-lived assets consist of noncurrent assets excluding deferred tax assets. |
Major Clients
Major Clients | 12 Months Ended |
Sep. 30, 2020 | |
Major Clients | |
Major Clients | 20. Major Clients No single client accounted for 10% or more of the Companyās revenue in any of the past five |
Quarterly Financial Information
Quarterly Financial Information-Unaudited | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information-Unaudited | |
Quarterly Financial Information-Unaudited | 21. Quarterly Financial InformationāUnaudited In the opinion of management, the following unaudited quarterly data reflects all adjustments necessary for a fair statement of the results of operations. All such adjustments are of a normal recurring nature. ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā First Second Third Fourth Fiscal Year 2020: ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in millions, except per share data) Revenue ā $ 3,235.6 ā $ 3,245.7 ā $ 3,189.7 ā $ 3,569.0 Cost of revenue ā 3,069.8 ā 3,076.9 ā 3,004.6 ā 3,379.1 Gross profit ā 165.8 ā 168.8 ā 185.1 ā 189.9 ā ā ā ā ā ā ā ā ā ā ā ā ā Equity in earnings of joint ventures ā 9.9 ā 13.5 ā 8.6 ā 16.8 General and administrative expenses ā (43.6) ā (41.0) ā (54.5) ā (49.5) Restructuring costs ā ā (44.9) ā ā (31.2) ā ā (20.3) ā ā (91.9) Income from operations ā 87.2 ā 110.1 ā 118.9 ā 65.3 ā ā ā ā ā ā ā ā ā ā ā ā ā Other income ā 4.0 ā 2.4 ā 3.1 ā 1.6 Interest expense ā (40.4) ā (37.1) ā (35.0) ā (47.5) Income from continuing operations before taxes ā 50.8 ā 75.4 ā 87.0 ā 19.4 Income tax expense (benefit) for continuing operations ā 15.9 ā 21.7 ā (7.2) ā 15.3 Net income from continuing operations ā ā 34.9 ā ā 53.7 ā ā 94.2 ā ā 4.1 Net income (loss) from discontinued operations ā ā 18.2 ā ā (130.7) ā ā (0.1) ā ā (228.0) Net income (loss) ā 53.1 ā (77.0) ā 94.1 ā (223.9) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to noncontrolling interests from continuing operations ā ā (4.0) ā ā (5.2) ā ā (3.1) ā ā (4.2) Net income attributable to noncontrolling interests from discontinued operations ā (8.5) ā (3.9) ā (1.6) ā (2.2) Net income attributable to noncontrolling interests ā ā (12.5) ā ā (9.1) ā ā (4.7) ā ā (6.4) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income (loss) attributable to AECOM from continuing operations ā ā 30.9 ā ā 48.5 ā ā 91.1 ā ā (0.1) Net income (loss) attributable to AECOM from discontinued operations ā ā 9.7 ā ā (134.6) ā ā (1.7) ā ā (230.2) Net income (loss) attributable to AECOM ā $ 40.6 ā $ (86.1) ā $ 89.4 ā $ (230.3) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to AECOM per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic continuing operations per share ā $ 0.20 ā $ 0.31 ā $ 0.57 ā $ ā Basic discontinued operations per share ā $ 0.06 ā $ (0.85) ā $ (0.01) ā $ (1.44) Basic earnings per share ā $ 0.26 ā $ (0.54) ā $ 0.56 ā $ (1.44) ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted continuing operations per share ā $ 0.19 ā $ 0.30 ā $ 0.56 ā $ ā Diluted discontinued operations per share ā $ 0.06 ā $ (0.84) ā $ (0.01) ā $ (1.44) Diluted earnings per share ā $ 0.25 ā $ (0.54) ā $ 0.55 ā $ (1.44) ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā 157.3 ā 158.6 ā 160.1 ā 160.0 Diluted ā 160.6 ā 160.7 ā 161.8 ā 160.0 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā First Second Third Fourth Fiscal Year 2019: ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in millions, except per share data) Revenue ā $ 3,356.3 ā $ 3,412.6 ā $ 3,360.2 ā $ 3,513.4 Cost of revenue ā 3,232.9 ā 3,267.8 ā 3,206.4 ā 3,323.7 Gross profit ā 123.4 ā 144.8 ā 153.8 ā 189.7 ā ā ā ā ā ā ā ā ā ā ā ā ā Equity in earnings of joint ventures ā 6.6 ā 16.6 ā 9.2 ā 16.9 General and administrative expenses ā (35.9) ā (37.4) ā (37.5) ā (37.4) Restructuring costs ā ā (63.3) ā ā (15.9) ā ā ā ā ā (16.2) Impairment of long-lived assets ā ā ā ā ā ā ā ā ā ā ā (24.9) Gain on disposal activities ā ā ā ā ā ā ā ā ā ā ā 3.6 Income from operations ā 30.8 ā 108.1 ā 125.5 ā 131.7 ā ā ā ā ā ā ā ā ā ā ā ā ā Other income ā 3.0 ā 3.8 ā 4.3 ā 3.5 Interest expense ā (39.4) ā (41.4) ā (40.5) ā (40.2) (Loss) income from continuing operations before taxes ā (5.6) ā 70.5 ā 89.3 ā 95.0 Income tax (benefit) expense for continuing operations ā (42.5) ā 12.2 ā 27.2 ā 16.6 Net income from continuing operations ā 36.9 ā 58.3 ā 62.1 ā 78.4 Net income (loss) from discontinued operations ā 28.2 ā 35.2 ā 43.3 ā (526.4) Net income (loss) ā ā 65.1 ā ā 93.5 ā ā 105.4 ā ā (448.0) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to noncontrolling interests from continuing operations ā (4.9) ā (6.9) ā (6.1) ā (6.8) Net income attributable to noncontrolling interests from discontinued operations ā (8.6) ā (8.8) ā (15.6) ā (19.4) Net income attributable to noncontrolling interests ā (13.5) ā (15.7) ā (21.7) ā (26.2) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income (loss) attributable to AECOM from continuing operations ā 32.0 ā 51.4 ā 56.0 ā 71.6 Net income (loss) attributable to AECOM from discontinued operations ā 19.6 ā 26.4 ā 27.7 ā (545.8) Net income (loss) attributable to AECOM ā $ 51.6 ā $ 77.8 ā $ 83.7 ā $ (474.2) Net income (loss) attributable to AECOM per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic continuing operations per share ā $ 0.20 ā $ 0.33 ā $ 0.36 ā $ 0.45 Basic discontinued operations per share ā $ 0.13 ā $ 0.17 ā $ 0.17 ā $ (3.46) Basic earnings per share ā $ 0.33 ā $ 0.50 ā $ 0.53 ā $ (3.01) ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted continuing operations per share ā $ 0.20 ā $ 0.32 ā $ 0.35 ā $ 0.44 Diluted discontinued operations per share ā $ 0.12 ā $ 0.17 ā $ 0.17 ā $ (3.39) Diluted earnings per share ā $ 0.32 ā $ 0.49 ā $ 0.52 ā $ (2.95) ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā ā 156.4 ā ā 156.6 ā ā 157.4 ā ā 157.7 Diluted ā ā 159.6 ā ā 158.4 ā ā 159.8 ā ā 160.9 ā |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 22. Subsequent Events ā On October 16, 2020, the Company closed on the sale of its Power construction business to CriticalPoint Capital, LLC. Prior to the sale, the Power construction business was classified within discontinued operations. The Company has repurchased approximately 7.0 million shares for approximately $318.7 million since the beginning of fiscal year 2021. |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2020 | |
Schedule II: Valuation and Qualifying Accounts | |
Schedule II: Valuation and Qualifying Accounts | AECOM Technology Corporation ā Schedule II: Valuation and Qualifying Accounts (amounts in millions) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Balance at Additions ā Other and Balance at ā ā Beginning ā Charged to Cost ā ā ā Foreign ā the End of ā ā of Year ā of Revenue ā Deductions (a) ā Exchange Impact ā the Year Allowance for Doubtful Accounts ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year 2020 ā $ 56.5 ā $ 37.6 ā $ (16.4) ā $ 0.2 ā $ 77.9 Fiscal Year 2019 ā $ 54.2 ā $ 23.9 ā $ (21.0) ā $ (0.6) ā $ 56.5 Fiscal Year 2018 ā $ 53.7 ā $ 18.1 ā $ (16.3) ā $ (1.3) ā $ 54.2 (a) Primarily relates to accounts written-off and recoveries |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies | |
Fiscal Year | Fiscal Year |
Use of Estimates | Use of Estimates |
Principles of Consolidation and Presentation | Principles of Consolidation and Presentation |
Government Contract Matters | Government Contract Matters Audits by the DCAA and other agencies consist of reviews of the Companyās overhead rates, operating systems and cost proposals to ensure that the Company accounted for such costs in accordance with the Cost Accounting Standards of the FAR (CAS). If the DCAA determines the Company has not accounted for such costs consistent with CAS, the DCAA may disallow these costs. There can be no assurance that audits by the DCAA or other governmental agencies will not result in material cost disallowances in the future. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts ā Client typeāfederal or state and local government or commercial client; ā Historical contract performance; ā Historical collection and delinquency trends; ā Client credit worthiness; and ā General economic conditions. |
Derivative Financial Instruments | Derivative Financial Instruments For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income in stockholdersā equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in current income. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. The net gain or loss on the effective portion of a derivative instrument that is designated as an economic hedge of the foreign currency translation exposure generated by the re-measurement of certain assets and liabilities denominated in a non-functional currency in a foreign operation is reported in the same manner as a foreign currency translation adjustment. Accordingly, any gains or losses related to these derivative instruments are recognized in current income. Derivatives that do not qualify as hedges are adjusted to fair value through current income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturities of these instruments. The carrying amount of the revolving credit facility approximates fair value because the interest rates are based upon variable reference rates. The Companyās fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date. |
Property and Equipment | Property and Equipment ten three three |
Long-Lived Assets | Long-Lived Assets |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets The Company tests goodwill for impairment annually for each reporting unit in the fourth quarter of the fiscal year and between annual tests, if events occur or circumstances change which suggest that goodwill should be evaluated. Such events or circumstances include significant changes in legal factors and business climate, recent losses at a reporting unit, and industry trends, among other factors. A reporting unit is defined as an operating segment or one level below an operating segment. The Companyās impairment tests are performed at the operating segment level as they represent the Companyās reporting units. During the impairment test, the Company estimates the fair value of the reporting unit using income and market approaches, and compares that amount to the carrying value of that reporting unit. In the event the fair value of the reporting unit is determined to be less than the carrying value, goodwill is impaired, and an impairment loss is recognized equal to the excess, limited to the total amount of goodwill allocated to the reporting unit. See also Note 3. |
Pension Plans | Pension Plans |
Insurance Reserves | Insurance Reserves |
Foreign Currency Translation | Foreign Currency Translation The Company uses foreign currency forward contracts from time to time to mitigate foreign currency risk. The Company limits exposure to foreign currency fluctuations in most of its contracts through provisions that require client payments in currencies corresponding to the currency in which costs are incurred. As a result of this natural hedge, the Company generally does not need to hedge foreign currency cash flows for contract work performed. |
Noncontrolling Interests | Noncontrolling Interests |
Income Taxes | Income Taxes |
Discontinued Operations, Good_2
Discontinued Operations, Goodwill, and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 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): ā ā ā ā ā ā ā ā September 30, September 30, ā ā 2020 ā 2019 ā ā ā ā ā ā ā Cash and cash equivalents ā $ 109.9 ā $ 194.7 Receivables and contract assets ā 544.3 ā 1,326.6 Other ā 62.5 ā 112.0 Current assets held for sale ā $ 716.7 ā $ 1,633.3 ā ā ā ā ā ā ā Property and equipment, net ā $ 119.8 ā $ 153.8 Goodwill ā ā ā 1,798.5 Other ā 254.4 ā 364.7 Write-down of assets to fair value less cost to sell ā ā (247.2) ā ā ā Non-current assets held for sale ā $ 127.0 ā $ 2,317.0 ā ā ā ā ā ā ā Accounts payable and accrued expenses ā $ 394.5 ā $ 1,056.0 Contract liabilities ā 73.6 ā 88.9 Other ā 1.6 ā 18.8 Current liabilities held for sale ā $ 469.7 ā $ 1,163.7 ā ā ā ā ā ā ā Long-term liabilities held for sale ā $ 98.8 ā $ 314.0 ā The following table represents summarized income statement information of discontinued operations (in millions): ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā ā ā ā ā ā Revenue ā $ 3,150.8 ā $ 6,530.9 Cost of revenue ā ā 3,179.2 ā ā 6,329.1 Gross (loss) profit ā ā (28.4) ā ā 201.8 Equity in earnings of joint ventures ā ā (25.5) ā ā 31.7 Gain (loss) on disposal activities ā ā 161.9 ā ā (14.0) Transaction costs ā ā (43.2) ā ā ā Impairment of long-lived assets, including goodwill ā ā (336.5) ā ā (590.5) Loss from operations ā ā (271.7) ā ā (371.0) Other income ā ā 1.8 ā ā 2.5 Interest expense ā ā (40.5) ā ā (64.8) Loss before taxes ā ā (310.4) ā ā (433.3) Income tax (benefit) expense ā ā 30.2 ā ā (13.6) Net loss from discontinued operations ā $ (340.6) ā $ (419.7) ā The significant components included in the Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions): ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā ā ā ā ā ā Depreciation and amortization: $ ā ā $ ā Property and equipment ā ā 4.6 ā ā 26.9 Intangible assets and capitalized debt issuance costs ā ā 26.0 ā ā 66.5 Payments for capital expenditures ā ā (19.6) ā ā (20.1) |
Schedule of changes in the carrying value of goodwill by reportable segment | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Foreign ā ā ā ā September 30, ā Exchange ā September 30, ā ā 2019 ā Impact ā 2020 ā ā (in millions) Americas ā $ 2,618.6 ā $ (1.5) ā $ 2,617.1 International ā 858.2 ā 8.9 ā 867.1 Total ā $ 3,476.8 ā $ 7.4 ā $ 3,484.2 ā |
Schedule of finite-lived intangible assets by major class | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā September 30, 2020 ā September 30, 2019 ā ā ā ā Gross ā Accumulated ā Intangible ā Gross ā Accumulated ā Intangible ā Amortization ā Amount Amortization Assets, Net Amount Amortization Assets, Net Period ā ā (in millions) ā (years) Backlog and customer relationships ā $ 662.8 ā $ (585.9) ā $ 76.9 ā $ 661.4 ā $ (561.8) ā $ 99.6 1 - 11 ā |
Schedule of estimated future amortization expense of intangible assets | ā ā ā ā ā Fiscal Year (in millions) 2021 ā $ 20.3 2022 ā 19.5 2023 ā 18.6 2024 ā 17.3 2025 ā ā 0.7 Thereafter ā 0.5 Total ā $ 76.9 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition | |
Schedule of revenues disaggregated by revenue sources | ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā 2020 2019 2018 ā ā (in millions) Cost reimbursable ā $ 5,734.5 ā $ 5,958.2 ā $ 5,440.3 Guaranteed maximum price ā ā 3,896.8 ā 3,962.6 ā 4,673.9 Fixed price ā ā 3,608.7 ā 3.721.7 ā 3,764.1 Total revenue ā $ 13,240.0 ā $ 13,642.5 ā $ 13,878.3 ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā 2020 2019 2018 ā ā (in millions) Americas ā $ 10,138.3 ā $ 10,390.8 ā $ 10,512.3 Europe, Middle East, Africa ā ā 1,620.3 ā 1,752.1 ā 1,816.2 Asia Pacific ā 1,481.4 ā 1,499.6 ā 1,549.8 Total revenue ā $ 13,240.0 ā $ 13,642.5 ā $ 13,878.3 ā |
Schedule of net accounts receivable | ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Billed ā $ 2,419.6 ā $ 2,368.2 Contract retentions ā 524.2 ā 557.5 Total accounts receivableāgross ā 2,943.8 ā 2,925.7 Allowance for doubtful accounts ā (77.9) ā (56.5) Total accounts receivableānet ā $ 2,865.9 ā $ 2,869.2 ā |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Schedule of property and equipment, at cost | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā ā ā ā ā September 30, ā September 30, ā Useful Lives ā 2020 2019 (years) ā ā (in millions) ā ā ā ā Building and land ā $ 11.5 ā $ 11.2 10 - 45 Leasehold improvements ā 343.2 ā 363.5 1 - 20 Computer systems and equipment ā 557.4 ā 582.3 3 - 12 Furniture and fixtures ā 134.8 ā 133.0 3 - 10 Total ā 1,046.9 ā 1,090.0 ā ā ā ā Accumulated depreciation and amortization ā (665.2) ā (684.4) ā ā ā ā Property and equipment, net ā $ 381.7 ā $ 405.6 ā ā ā ā |
Joint Ventures and Variable I_2
Joint Ventures and Variable Interest Entities (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Joint Ventures and Variable Interest Entities | |
Summary of financial information of the consolidated joint ventures | ā ā ā ā ā ā ā ā ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Current assets ā $ 536.3 ā $ 581.3 Non-current assets ā 77.0 ā 75.4 Total assets ā $ 613.3 ā $ 656.7 ā ā ā ā ā ā ā Current liabilities ā $ 409.9 ā $ 432.8 Non-current liabilities ā 1.5 ā ā Total liabilities ā 411.4 ā 432.8 Total AECOM equity ā 113.9 ā 137.9 Noncontrolling interests ā 88.0 ā 86.0 Total ownersā equity ā 201.9 ā 223.9 Total liabilities and ownersā equity ā $ 613.3 ā $ 656.7 |
Summary of financial information of the unconsolidated joint ventures, as derived from their unaudited financial statements | ā ā ā ā ā ā ā ā ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Current assets ā $ 1,087.2 ā $ 1,133.5 Non-current assets ā 465.8 ā 904.5 Total assets ā $ 1,553.0 ā $ 2,038.0 ā ā ā ā ā ā ā Current liabilities ā $ 937.1 ā $ 1,115.5 Non-current liabilities ā 58.9 ā 182.3 Total liabilities ā 996.0 ā 1,297.8 Joint venturesā equity ā 557.0 ā 740.2 Total liabilities and joint venturesā equity ā $ 1,553.0 ā $ 2,038.0 ā ā ā ā ā ā ā AECOMās investment in joint ventures ā $ 229.3 ā $ 256.1 ā ā ā ā ā ā ā ā ā ā Twelve Months Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Revenue ā $ 3,058.9 ā $ 2,959.3 Cost of revenue ā 2,993.1 ā 2,876.1 Gross profit ā $ 65.8 ā $ 83.2 Net income ā $ 59.8 ā $ 83.4 ā |
Summary of AECOM's equity in earnings of unconsolidated joint ventures | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā ā September 30, ā September 30, ā September 30, ā ā 2020 2019 2018 ā ā ā (in millions) ā Pass through joint ventures ā $ 34.1 ā $ 31.6 ā $ 34.2 ā Other joint ventures ā 14.7 ā 17.7 ā 15.2 ā Total ā $ 48.8 ā $ 49.3 ā $ 49.4 ā |
Pension Benefit Obligations (Ta
Pension Benefit Obligations (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Pension Benefit Obligations | |
Reconciliations of the changes in the U.S. and international plans' benefit obligations | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Change in benefit obligation: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Benefit obligation at beginning of year ā $ 252.9 ā $ 1,311.3 ā $ 232.9 ā $ 1,188.7 ā $ 251.9 ā $ 1,333.4 Service cost ā ā ā 0.6 ā ā ā 0.5 ā ā ā 1.1 Participant contributions ā ā ā 0.3 ā 0.1 ā 0.3 ā 0.2 ā 0.4 Interest cost ā 6.4 ā 22.4 ā 8.6 ā 29.7 ā 7.4 ā 32.0 Benefits and expenses paid ā (16.3) ā (42.9) ā (15.2) ā (41.2) ā (16.6) ā (53.7) Actuarial (gain) loss ā 20.7 ā 82.8 ā 27.8 ā 206.5 ā (10.6) ā (87.7) Plan settlements ā (2.1) ā (4.1) ā (1.3) ā (3.7) ā ā ā (3.0) Plan amendments ā ā ā ā ā ā ā ā ā ā ā 5.2 ā ā 0.6 ā ā ā Plan curtailments ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā (0.1) Foreign currency translation (gain) loss ā ā ā 69.8 ā ā ā (74.7) ā ā ā (33.7) Benefit obligation at end of year ā $ 261.6 ā $ 1,440.2 ā $ 252.9 ā $ 1,311.3 ā $ 232.9 ā $ 1,188.7 |
Reconciliations of the changes in the fair value of assets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Change in plan assets ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair value of plan assets at beginning of year ā $ 129.3 ā $ 1,068.8 ā $ 131.4 ā $ 965.9 ā $ 136.5 ā $ 993.1 Actual return on plan assets ā 11.7 ā 59.5 ā 4.5 ā 180.3 ā 4.3 ā 29.3 Employer contributions ā 7.0 ā 27.7 ā 9.8 ā 28.1 ā 7.0 ā 27.8 Participant contributions ā ā ā 0.3 ā 0.1 ā 0.3 ā 0.2 ā 0.4 Benefits and expenses paid ā (16.3) ā (42.9) ā (15.2) ā (41.2) ā (16.6) ā (53.7) Plan settlements ā (2.1) ā (4.1) ā (1.3) ā (3.7) ā ā ā (3.0) Foreign currency translation gain (loss) ā ā ā 56.9 ā ā ā (60.9) ā ā ā (28.0) Fair value of plan assets at end of year ā $ 129.6 ā $ 1,166.2 ā $ 129.3 ā $ 1,068.8 ā $ 131.4 ā $ 965.9 |
Reconciliations of the funded status | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Reconciliation of funded status: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Funded status at end of year ā $ (132.0) ā $ (274.0) ā $ (123.6) ā $ (242.5) ā $ (101.5) ā $ (222.8) Contribution made after measurement date ā N/A ā N/A ā N/A ā N/A ā N/A ā N/A Net amount recognized at end of year ā $ (132.0) ā $ (274.0) ā $ (123.6) ā $ (242.5) ā $ (101.5) ā $ (222.8) |
Amounts recognized in the consolidated balance sheets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Amounts recognized in the consolidated balance sheets: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Other non-current assets ā $ ā ā $ 44.0 ā $ ā ā $ 28.2 ā $ ā ā $ 19.1 Accrued expenses and other current liabilities ā (6.5) ā ā ā (7.3) ā ā ā (6.3) ā ā Pension benefit obligations ā (125.5) ā (318.0) ā (116.3) ā (270.7) ā (95.2) ā (241.9) Net amount recognized in the balance sheet ā $ (132.0) ā $ (274.0) ā $ (123.6) ā $ (242.5) ā $ (101.5) ā $ (222.8) ā |
Reconciliation of amounts in the consolidated statements of stockholder's equity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Reconciliation of amounts in consolidated statements of stockholdersā equity: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Prior service (cost) credit ā $ (0.1) ā $ (1.2) ā $ (0.7) ā $ (1.2) ā $ (0.8) ā $ 4.1 Net loss ā (133.5) ā (297.8) ā (123.1) ā (233.0) ā (94.8) ā (186.4) Total recognized in accumulated other comprehensive loss ā $ (133.6) ā $ (299.0) ā $ (123.8) ā $ (234.2) ā $ (95.6) ā $ (182.3) ā |
Components of net periodic cost for the Company's pension and post-retirement plans | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā September 30, 2019 ā September 30, 2018 ā ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Components of net periodic benefit cost: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Service costs ā $ ā ā $ 0.6 ā $ ā ā $ 0.5 ā $ ā ā $ 1.1 Interest cost on projected benefit obligation ā 6.4 ā 22.4 ā 8.6 ā 29.7 ā 7.4 ā 32.0 Expected return on plan assets ā (7.0) ā (37.5) ā (9.0) ā (38.1) ā (9.0) ā (43.1) Amortization of prior service costs (credits) ā 0.1 ā 0.1 ā 0.1 ā (0.1) ā 0.1 ā (0.2) Amortization of net loss ā 5.0 ā 8.6 ā 3.9 ā 4.1 ā 4.1 ā 8.2 Curtailment loss recognized ā ā 0.5 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Settlement loss recognized ā 0.6 ā 0.5 ā 0.2 ā 0.8 ā ā ā 0.3 Net periodic benefit cost ā $ 5.6 ā $ (5.3) ā $ 3.8 ā $ (3.1) ā $ 2.6 ā $ (1.7) ā |
Amounts included in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | ā ā ā ā ā ā ā ā ā U.S. Intāl Amortization of prior service cost ā $ ā ā $ (0.1) Amortization of net actuarial losses ā (5.9) ā (8.7) Total ā $ (5.9) ā $ (8.8) ā |
Additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) Projected benefit obligation ā $ 260.7 ā $ 1,216.6 ā $ 252.5 ā $ 1,141.9 ā $ 232.2 ā $ 1,002.6 Accumulated benefit obligation ā 260.7 ā 1,211.5 ā 252.5 ā 1,132.7 ā 232.2 ā 991.9 Fair value of plan assets ā 129.6 ā 898.5 ā 129.3 ā 871.2 ā 131.3 ā 760.7 ā |
Schedule of expected future benefit payments | ā ā ā ā ā ā ā ā Year Ending September 30, U.S. Intāl 2021 ā $ 19.1 ā $ 50.6 2022 ā 18.8 ā 48.6 2023 ā 17.7 ā 50.5 2024 ā 17.6 ā 51.5 2025 ā 17.4 ā 52.6 2026-2030 ā 79.2 ā 286.4 Total ā $ 169.8 ā $ 540.2 ā |
Schedule of underlying assumptions for the pension plans | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā U.S. Intāl U.S. Intāl U.S. Intāl ā ā (in millions) ā Weighted-average assumptions to determine benefit obligation: ā ā ā ā ā ā ā ā ā ā ā ā ā Discount rate 2.25 % 1.67 % 2.94 % 1.81 % 4.12 % 2.91 % Salary increase rate N/A ā 2.68 % N/A ā 2.52 % N/A ā 2.79 % Weighted-average assumptions to determine net periodic benefit cost: ā ā ā ā ā ā ā ā ā ā ā ā ā Discount rate 2.94 % 1.81 % 4.12 % 2.91 % 3.66 % 2.67 % Salary increase rate N/A ā 2.52 % N/A ā 2.79 % N/A ā 2.76 % Expected long-term rate of return on plan assets 7.30 % 4.03 % 7.00 % 4.43 % 7.00 % 4.73 % ā |
Summary of the Company's target allocation and pension plan asset allocation, both U.S. and international | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Percentage of Plan Assets ā ā ā ā ā ā as of September 30, ā ā Target Allocations ā 2020 ā 2019 ā U.S. Intāl U.S. Intāl U.S. Intāl Asset Category: ā ā ā ā ā ā ā ā ā ā ā ā ā Equities 45 % 26 % 47 % 26 % 45 % 36 % Debt 43 ā 53 ā 42 ā 54 ā 44 ā 31 ā Cash 2 ā 4 ā 1 ā 4 ā 2 ā 3 ā Property and other 10 ā 17 ā 10 ā 16 ā 9 ā 30 ā Total 100 % 100 % 100 % 100 % 100 % 100 % ā |
Fair values of the Company's post retirement benefit plan assets by major asset categories | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurement as of ā ā ā ā ā ā ā September 30, 2020 ā ā ā ā ā Total ā Quoted ā Significant ā ā ā ā ā ā ā Carrying ā Prices in ā Other ā Significant ā ā ā ā ā Value as of ā Active ā Observable ā Unobservable ā Investments ā ā September 30, ā Markets ā Inputs ā Inputs ā measured at ā 2020 (Level 1) (Level 2) (Level 3) ā NAV ā ā (in millions) Cash and cash equivalents ā $ 50.6 ā $ 20.2 ā $ 30.4 ā $ ā ā $ ā Equity and debt securities ā ā 442.3 ā ā 442.3 ā ā ā ā ā ā ā ā ā Investment funds ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Diversified and equity funds ā 31.5 ā 13.0 ā 15.1 ā 3.4 ā ā Fixed income funds ā 36.2 ā 23.1 ā 13.1 ā ā ā ā Common collective funds ā ā 707.5 ā ā ā ā ā ā ā ā ā ā ā 707.5 Derivative instruments ā ā 27.7 ā ā ā ā ā 27.7 ā ā ā ā ā ā Total ā $ 1,295.8 ā $ 498.6 ā $ 86.3 ā $ 3.4 ā $ 707.5 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fair Value Measurement as of ā ā ā ā ā ā ā ā September 30, 2019 ā ā ā ā ā Total ā Quoted ā Significant ā ā ā ā ā ā ā Carrying ā Prices in ā Other ā Significant ā ā ā ā ā Value as of ā Active ā Observable ā Unobservable ā Investments ā ā September 30, ā Markets ā Inputs ā Inputs ā measured at ā 2019 (Level 1) (Level 2) (Level 3) ā NAV ā ā (in millions) Cash and cash equivalents ā $ 35.7 ā $ 21.1 ā $ 14.6 ā $ ā ā $ ā Equity and debt securities ā ā 115.5 ā ā 115.5 ā ā ā ā ā ā ā ā ā Investment funds ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Diversified and equity funds ā 155.7 ā 141.9 ā 13.8 ā ā ā ā Fixed income funds ā 36.6 ā 21.3 ā 15.3 ā ā ā ā Common collective funds ā ā 668.7 ā ā ā ā ā ā ā ā ā ā ā 668.7 Assets held by insurance company ā 26.8 ā ā ā ā ā 26.8 ā ā Derivative instruments ā ā 159.1 ā ā ā ā ā 159.1 ā ā ā ā ā ā Total ā $ 1,198.1 ā $ 299.8 ā $ 202.8 ā $ 26.8 ā $ 668.7 |
Changes in the fair value of the Company's post-retirement plan Level 3 assets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Actual return Actual return ā ā ā ā ā ā ā ā on plan assets, ā on plan assets, ā ā ā ā ā Change ā ā ā ā September 30, ā relating to ā relating to ā ā ā Transfer ā due to ā ā ā ā ā 2019 ā assets still ā assets sold ā Purchases, ā into / ā exchange ā September 30, ā ā Beginning ā held at ā during the ā sales and ā (out of) ā rate ā 2020 ā ā balance ā reporting date ā period ā settlements ā Level 3 ā changes ā Ending balance ā ā (in millions) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 3 Assets ā $ 26.8 ā $ (0.2) ā $ (2.1) ā $ (25.4) ā $ 3.2 ā $ 1.1 ā $ 3.4 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Actual return Actual return ā ā ā ā ā ā ā ā on plan assets, ā on plan assets, ā ā ā ā ā Change ā ā ā ā September 30, ā relating to ā relating to ā ā ā Transfer ā due to ā ā ā ā ā 2018 ā assets still ā assets sold ā Purchases, ā into / ā exchange ā September 30, ā ā Beginning ā held at ā during the ā sales and ā (out of) ā rate ā 2019 ā ā balance ā reporting date ā period ā settlements ā Level 3 ā changes ā Ending balance ā ā (in millions) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 3 Assets ā $ 45.0 ā $ 0.4 ā $ (0.1) ā $ (17.0) ā $ ā ā $ (1.5) ā $ 26.8 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Debt | |
Schedule of debt | ā ā ā ā ā ā ā ā ā ā September 30, ā September 30, ā 2020 2019 ā ā (in millions) 2014 Credit Agreement ā $ 248.5 ā $ 1,182.2 2014 Senior Notes ā ā 797.3 ā ā 800.0 2017 Senior Notes ā ā 997.3 ā ā 1,000.0 URS Senior Notes ā ā ā ā ā 248.1 Other debt ā 41.9 ā 122.2 Total debt ā 2,085.0 ā 3,352.5 Less: Current portion of debt and short-term borrowings ā (20.9) ā (98.3) Less: Unamortized debt issuance costs ā ā (23.0) ā ā (36.2) Long-term debt ā $ 2,041.1 ā $ 3,218.0 ā |
Schedule of maturities of debt | ā ā ā ā ā Fiscal Year ā ā 2021 ā $ 20.9 2022 ā 17.9 2023 ā 244.8 2024 ā 5.1 2025 ā 799.0 Thereafter ā 997.3 Total ā $ 2,085.0 ā |
Derivative Financial Instrume_2
Derivative Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Derivative Financial Instruments and Fair Value Measurements | |
Notional principle, fixed rates and related expiration dates of outstanding interest rate swap agreements | ā ā ā ā ā ā ā ā ā September 30, 2020 Notional Amount ā Notional Amount ā Fixed ā Expiration Currency (in millions) Rate Date USD ā ā 200.0 ā 2.60 % February 2023 ā ā ā ā ā ā ā ā ā September 30, 2019 Notional Amount ā Notional Amount ā Fixed ā Expiration Currency (in millions) Rate Date AUD ā 200.0 2.19 % February 2021 CAD ā ā 400.0 ā 2.49 % September 2022 USD ā ā 200.0 ā 2.60 % February 2023 ā |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases | |
Schedule of components of lease expense | ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, 2020 ā ā (in millions) Operating lease cost ā $ 191.6 Finance lease cost: ā ā Amortization of right-of-use assets ā 17.1 Interest on lease liabilities ā 1.9 Variable lease cost ā 36.5 Short-term lease cost ā 19.2 Total lease cost ā $ 266.3 |
Schedule of additional balance sheet information related to leases | ā ā ā ā ā ā ā (in millions except as noted) Balance Sheet Classification Sept 30, 2020 Assets: ā Operating lease assets Operating lease right-of-use assets ā $ 652.1 Finance lease assets Property and equipment ā net ā 29.1 Total lease assets ā $ 681.2 ā ā ā ā ā ā Liabilities: ā ā Current: ā ā Operating lease liabilities Accrued expenses and other current liabilities ā $ 168.4 Finance lease liabilities Current portion of long-term debt ā 9.8 Total current lease liabilities ā 178.2 Non-current: ā ā Operating lease liabilities Operating lease liabilities, noncurrent ā 745.3 Finance lease liabilities Long-term debt ā 22.0 Total non-current lease liabilities ā $ 767.3 ā ā ā ā ā ā Sept 30, 2020 ā Weighted average remaining lease term (in years): ā ā Operating leases 7.3 ā Finance leases 3.3 ā Weighted average discount rates: ā ā Operating leases 4.6 % Finance leases 4.7 % |
Schedule of additional cash flow information related to leases | ā ā ā ā ā ā Fiscal Year Ended ā ā Sept 30, 2020 ā ā (in millions) Cash paid for amounts included in the measurement of lease liabilities: ā Operating cash flows from operating leases ā $ 208.7 Operating cash flows from finance leases ā 1.8 Financing cash flows from finance leases ā 14.7 Right-of-use assets obtained in exchange for new operating leases ā 126.9 Right-of-use assets obtained in exchange for new finance leases ā 26.4 |
Schedule of total remaining lease payments under the Company's operating and finance leases | ā ā ā ā ā ā ā ā ā Operating Leases Finance Leases Fiscal Year ā (in millions) 2021 ā $ 212.4 ā $ 10.3 2022 ā 170.7 ā 9.0 2023 ā 140.4 ā 7.6 2024 ā 120.4 ā 5.1 2025 ā 105.4 ā 1.9 Thereafter ā 371.8 ā 0.1 Total lease payments ā $ 1,121.1 ā $ 34.0 Less: Amounts representing interest ā $ (207.4) ā $ (2.2) Total lease liabilities ā $ 913.7 ā $ 31.8 |
Share-based Payments (Tables)
Share-based Payments (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Share-Based Payments | |
Schedule of stock option activity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Number of ā Weighted ā ā Options ā Average ā (in millions) Exercise Price Balance, September 30, 2017 0.7 ā ā 31.11 Granted ā ā ā ā Exercised (0.1) ā ā 27.79 Cancelled ā ā ā ā Balance, September 30, 2018 0.6 ā ā 31.62 Granted ā ā ā ā Exercised ā ā ā ā Cancelled (0.5) ā ā (31.62) Balance, September 30, 2019 0.1 ā ā 31.62 Granted 0.3 ā ā 38.72 Exercised ā ā ā ā Cancelled ā ā ā ā Balance, September 30, 2020 0.4 ā ā 36.41 Exercisable as of September 30, 2018 ā ā ā N/A Exercisable as of September 30, 2019 0.1 ā ā 31.62 Exercisable as of September 30, 2020 0.1 ā ā 31.62 ā |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Schedule of income tax (benefit) expense | ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, September 30, ā ā 2020 ā 2019 ā 2018 ā ā (in millions) Current: ā ā ā ā ā ā ā ā ā Federal ā $ 21.8 ā $ (17.3) ā $ (159.7) State ā 12.7 ā 29.8 ā 2.3 Foreign ā 55.7 ā 41.7 ā 51.1 Total current income tax expense (benefit) ā 90.2 ā 54.2 ā (106.3) Deferred: ā ā ā ā ā ā ā ā ā Federal ā (21.8) ā (26.1) ā 119.6 State ā 12.8 ā (24.6) ā 4.1 Foreign ā (35.4) ā 10.0 ā (20.9) Total deferred income tax (benefit) expense ā (44.4) ā (40.7) ā 102.8 Total income tax (benefit) expense ā $ 45.8 ā $ 13.5 ā $ (3.5) ā |
Major elements contributing to the difference between the U.S. federal statutory rate of 24.5% for fiscal year 2018 and 35% for fiscal years ended 2017 and 2016 and the effective tax rate | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, ā September 30, ā September 30, ā ā 2020 ā 2019 ā 2018 ā Amount % Amount % Amount % ā ā (in millions) Tax at federal statutory rate ā $ 48.8 21.0 % $ 52.0 21.0 % $ 52.4 24.5 % State income tax, net of federal benefit ā 8.4 3.6 ā 7.0 2.8 ā (1.3) (0.6) ā Foreign residual income ā ā 39.5 ā 17.0 ā ā 35.8 ā 14.5 ā ā 9.9 ā 4.6 ā Nondeductible costs ā ā 15.8 ā 6.8 ā ā 7.6 ā 3.1 ā ā 2.5 ā 1.2 ā Return to provision ā ā 5.1 ā 2.2 ā ā (0.2) ā (0.1) ā ā (21.2) ā (9.9) ā Foreign tax rate differential ā ā 3.2 ā 1.4 ā ā (3.1) ā (1.3) ā ā (0.7) ā (0.3) ā Income tax credits and incentives ā ā (47.8) ā (20.6) ā ā (44.7) ā (18.1) ā ā (28.6) ā (13.4) ā Valuation allowance ā ā (15.9) ā (6.9) ā ā (26.5) ā (10.7) ā ā 37.8 ā 17.7 ā Change in uncertain tax positions ā ā (8.3) ā (3.6) ā ā 5.6 ā 2.3 ā ā (26.0) ā (12.2) ā Exclusion of tax on non-controlling interests ā ā (3.4) ā (1.5) ā ā (5.3) ā (2.1) ā ā (5.0) ā (2.3) ā Tax exempt income ā ā (5.1) ā (2.2) ā ā (3.9) ā (1.6) ā ā (7.4) ā (3.5) ā Audit settlement ā ā ā ā (4.6) (1.9) ā (27.7) (13.0) ā Impact of changes in tax law ā ā ā ā ā ā ā (1.5) ā (0.6) ā ā 12.5 ā 5.9 ā Other items, net ā ā 5.5 ā 2.5 ā ā (4.7) ā (1.9) ā ā (0.7) ā (0.4) ā Total income tax expense (benefit) ā $ 45.8 19.7 % $ 13.5 5.4 % $ (3.5) (1.7) % |
Schedule of deferred tax assets (liabilities) | ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Deferred tax assets: ā ā ā ā ā ā Compensation and benefit accruals not currently deductible ā $ 119.4 ā $ 98.0 Net operating loss carryforwards ā 173.2 ā 132.6 Self-insurance reserves ā 17.6 ā 11.3 Research and experimentation and other tax credits ā 112.9 ā 138.5 Pension liability ā 95.1 ā 78.2 Accrued liabilities ā 303.2 ā 97.2 Capital loss carryforward ā ā 104.8 ā ā ā Other ā 26.0 ā 14.8 Total deferred tax assets ā 952.2 ā 570.6 Deferred tax liabilities: ā ā ā ā ā ā Unearned revenue ā (40.3) ā (53.4) Depreciation and amortization ā (106.7) ā (76.3) Acquired intangible assets ā (24.5) ā (25.1) Investment in subsidiaries ā (10.9) ā (10.9) Right of use assets ā ā (164.9) ā ā ā Contingent consideration ā ā (33.6) ā ā ā Total deferred tax liabilities ā (380.9) ā (165.7) Valuation allowance ā (217.5) ā (120.6) Net deferred tax assets ā $ 353.8 ā $ 284.3 ā |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Balance at the beginning of the year ā $ 55.7 ā $ 53.8 Gross increase in current periodās tax positions ā 2.8 ā 2.9 Gross increase in prior yearsā tax positions ā ā ā 0.8 Gross decrease in prior yearsā tax positions ā (7.9) ā (1.0) Decrease due to settlement with tax authorities ā (0.5) ā ā Decrease due to lapse of statute of limitations ā (3.5) ā ā Gross change due to foreign exchange fluctuations ā ā 0.5 ā ā (0.8) Balance at the end of the year ā $ 47.1 ā $ 55.7 ā |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share | |
Reconciliation of the denominators for basic and diluted EPS | ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā ā September 30, September 30, September 30, ā ā 2020 ā 2019 ā 2018 ā ā (in millions) Denominator for basic earnings per share 159.0 157.0 159.1 Potential common shares 2.3 2.7 3.2 Denominator for diluted earnings per share 161.3 159.7 162.3 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Other Financial Information | |
Schedule of accrued expenses and other current liabilities | ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, ā ā 2020 ā 2019 ā ā (in millions) Accrued salaries and benefits ā $ 675.7 ā $ 681.5 Accrued contract costs ā 1,104.7 ā 927.1 Other accrued expenses ā 431.3 ā 269.7 ā ā $ 2,211.7 ā $ 1,878.3 ā |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Sep. 30, 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 | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Foreign ā ā ā Accumulated ā ā Pension ā Currency ā Loss on ā Other ā ā Related ā Translation ā Derivative ā Comprehensive ā Adjustments Adjustments Instruments Loss Balances at September 30, 2018 ā $ (202.3) ā $ (502.2) ā $ 1.2 ā $ (703.3) Other comprehensive income (loss) before reclassification ā ā (107.2) ā ā (46.5) ā ā (17.2) ā ā (170.9) Amounts reclassified from accumulated other comprehensive loss ā 6.8 ā ā ā 3.2 ā 10.0 Balances at September 30, 2019 ā $ (302.7) ā $ (548.7) ā $ (12.8) ā $ (864.2) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Foreign ā ā ā Accumulated ā ā Pension ā Currency ā Loss on ā Other ā ā Related ā Translation ā Derivative ā Comprehensive ā Adjustments Adjustments Instruments Loss Balances at September 30, 2019 ā $ (302.7) ā $ (548.7) ā $ (12.8) ā $ (864.2) Other comprehensive income (loss) before reclassification ā ā (72.5) ā ā (18.6) ā ā (5.3) ā ā (96.4) Amounts reclassified from accumulated other comprehensive loss ā 32.4 ā ā ā 9.5 ā 41.9 Balances at September 30, 2020 ā $ (342.8) ā $ (567.3) ā $ (8.6) ā $ (918.7) |
Reportable Segments and Geogr_2
Reportable Segments and Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Reportable Segments and Geographic Information | |
Summarized financial information concerning the Company's reportable segments | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā AECOM ā ā ā ā ā ā ā Reportable Segments: Americas International Capital Corporate Total ā ā ā (in millions) Fiscal Year Ended September 30, 2020: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenue ā $ 10,131.5 ā $ 3,101.7 ā $ 6.8 ā $ ā ā $ 13,240.0 ā Gross profit ā 580.5 ā 122.2 ā ā 6.9 ā ā ā 709.6 ā Equity in earnings of joint ventures ā 19.8 ā 14.3 ā ā 14.7 ā ā ā 48.8 ā General and administrative expenses ā ā ā ā ā ā (8.6) ā (180.0) ā (188.6) ā Restructuring costs ā ā ā ā ā ā ā ā ā ā ā (188.3) ā ā (188.3) ā Operating income (loss) ā 600.3 ā 136.5 ā ā 13.0 ā (368.3) ā 381.5 ā Segment assets ā 7,929.3 ā 2,454.0 ā ā 198.0 ā 1,573.9 ā ā ā Gross profit as a % of revenue ā 5.7 % 3.9 % ā ā ā ā ā ā 5.4 % ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended September 30, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenue ā $ 10,382.6 ā $ 3,251.7 ā $ 8.2 ā $ ā ā $ 13,642.5 ā Gross profit ā 511.5 ā 91.9 ā ā 8.3 ā ā ā 611.7 ā Equity in earnings of joint ventures ā 17.7 ā 13.9 ā ā 17.7 ā ā ā 49.3 ā General and administrative expenses ā ā ā ā ā ā (5.0) ā (143.2) ā (148.2) ā Restructuring costs ā ā ā ā ā ā ā ā ā ā ā (95.4) ā ā (95.4) ā Gain on disposal activities ā ā ā ā ā 3.6 ā ā ā ā ā ā ā ā 3.6 ā Impairment of long lived assets ā (10.8) ā ā (4.4) ā ā ā ā ā (9.7) ā ā (24.9) ā Operating income (loss) ā 518.4 ā 105.0 ā ā 21.0 ā (248.3) ā 396.1 ā Segment assets ā 7,437.3 ā 2,247.1 ā ā 197.8 ā 718.4 ā ā ā Gross profit as a % of revenue ā ā 4.9 % 2.8 % ā ā ā ā ā ā 4.5 % ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended September 30, 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Revenue $ 10,512.3 ā $ 3,366.0 ā $ ā ā $ ā ā $ 13,878.3 ā Gross profit ā 403.8 ā 75.2 ā ā ā ā ā ā 479.0 ā Equity in earnings of joint ventures ā 27.1 ā 7.0 ā ā 15.3 ā ā ā 49.4 ā General and administrative expenses ā ā ā ā ā ā (11.2) ā (124.6) ā (135.8) ā Operating income (loss) ā 430.9 ā 82.2 ā ā 4.1 ā (124.6) ā 392.6 ā Segment assets ā 7,119.9 ā 2,353.2 ā ā 140.6 ā 676.9 ā ā ā Gross profit as a % of revenue ā 3.8 % 2.2 % ā ā ā ā ā ā 3.5 % ā |
Schedule of Geographic Information | ā ā ā ā ā ā ā ā ā ā ā ā Fiscal Year Ended ā September 30, September 30, September 30, Long-Lived Assets 2020 2019 2018 ā ā (in millions) Americas ā 3,733.2 ā ā 3,399.1 ā ā 3,469.2 Europe, Middle East, Africa ā 875.8 ā ā 738.8 ā ā 745.8 Asia Pacific ā 375.3 ā 272.4 ā 278.3 Total ā 4,984.3 ā ā 4,410.3 ā ā 4,493.3 ā |
Quarterly Financial Informati_2
Quarterly Financial Information-Unaudited (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Quarterly Financial Information-Unaudited | |
Schedule of unaudited quarterly data | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā First Second Third Fourth Fiscal Year 2020: ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in millions, except per share data) Revenue ā $ 3,235.6 ā $ 3,245.7 ā $ 3,189.7 ā $ 3,569.0 Cost of revenue ā 3,069.8 ā 3,076.9 ā 3,004.6 ā 3,379.1 Gross profit ā 165.8 ā 168.8 ā 185.1 ā 189.9 ā ā ā ā ā ā ā ā ā ā ā ā ā Equity in earnings of joint ventures ā 9.9 ā 13.5 ā 8.6 ā 16.8 General and administrative expenses ā (43.6) ā (41.0) ā (54.5) ā (49.5) Restructuring costs ā ā (44.9) ā ā (31.2) ā ā (20.3) ā ā (91.9) Income from operations ā 87.2 ā 110.1 ā 118.9 ā 65.3 ā ā ā ā ā ā ā ā ā ā ā ā ā Other income ā 4.0 ā 2.4 ā 3.1 ā 1.6 Interest expense ā (40.4) ā (37.1) ā (35.0) ā (47.5) Income from continuing operations before taxes ā 50.8 ā 75.4 ā 87.0 ā 19.4 Income tax expense (benefit) for continuing operations ā 15.9 ā 21.7 ā (7.2) ā 15.3 Net income from continuing operations ā ā 34.9 ā ā 53.7 ā ā 94.2 ā ā 4.1 Net income (loss) from discontinued operations ā ā 18.2 ā ā (130.7) ā ā (0.1) ā ā (228.0) Net income (loss) ā 53.1 ā (77.0) ā 94.1 ā (223.9) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to noncontrolling interests from continuing operations ā ā (4.0) ā ā (5.2) ā ā (3.1) ā ā (4.2) Net income attributable to noncontrolling interests from discontinued operations ā (8.5) ā (3.9) ā (1.6) ā (2.2) Net income attributable to noncontrolling interests ā ā (12.5) ā ā (9.1) ā ā (4.7) ā ā (6.4) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income (loss) attributable to AECOM from continuing operations ā ā 30.9 ā ā 48.5 ā ā 91.1 ā ā (0.1) Net income (loss) attributable to AECOM from discontinued operations ā ā 9.7 ā ā (134.6) ā ā (1.7) ā ā (230.2) Net income (loss) attributable to AECOM ā $ 40.6 ā $ (86.1) ā $ 89.4 ā $ (230.3) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to AECOM per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic continuing operations per share ā $ 0.20 ā $ 0.31 ā $ 0.57 ā $ ā Basic discontinued operations per share ā $ 0.06 ā $ (0.85) ā $ (0.01) ā $ (1.44) Basic earnings per share ā $ 0.26 ā $ (0.54) ā $ 0.56 ā $ (1.44) ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted continuing operations per share ā $ 0.19 ā $ 0.30 ā $ 0.56 ā $ ā Diluted discontinued operations per share ā $ 0.06 ā $ (0.84) ā $ (0.01) ā $ (1.44) Diluted earnings per share ā $ 0.25 ā $ (0.54) ā $ 0.55 ā $ (1.44) ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā 157.3 ā 158.6 ā 160.1 ā 160.0 Diluted ā 160.6 ā 160.7 ā 161.8 ā 160.0 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā First Second Third Fourth Fiscal Year 2019: ā Quarter ā Quarter ā Quarter ā Quarter ā ā (in millions, except per share data) Revenue ā $ 3,356.3 ā $ 3,412.6 ā $ 3,360.2 ā $ 3,513.4 Cost of revenue ā 3,232.9 ā 3,267.8 ā 3,206.4 ā 3,323.7 Gross profit ā 123.4 ā 144.8 ā 153.8 ā 189.7 ā ā ā ā ā ā ā ā ā ā ā ā ā Equity in earnings of joint ventures ā 6.6 ā 16.6 ā 9.2 ā 16.9 General and administrative expenses ā (35.9) ā (37.4) ā (37.5) ā (37.4) Restructuring costs ā ā (63.3) ā ā (15.9) ā ā ā ā ā (16.2) Impairment of long-lived assets ā ā ā ā ā ā ā ā ā ā ā (24.9) Gain on disposal activities ā ā ā ā ā ā ā ā ā ā ā 3.6 Income from operations ā 30.8 ā 108.1 ā 125.5 ā 131.7 ā ā ā ā ā ā ā ā ā ā ā ā ā Other income ā 3.0 ā 3.8 ā 4.3 ā 3.5 Interest expense ā (39.4) ā (41.4) ā (40.5) ā (40.2) (Loss) income from continuing operations before taxes ā (5.6) ā 70.5 ā 89.3 ā 95.0 Income tax (benefit) expense for continuing operations ā (42.5) ā 12.2 ā 27.2 ā 16.6 Net income from continuing operations ā 36.9 ā 58.3 ā 62.1 ā 78.4 Net income (loss) from discontinued operations ā 28.2 ā 35.2 ā 43.3 ā (526.4) Net income (loss) ā ā 65.1 ā ā 93.5 ā ā 105.4 ā ā (448.0) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income attributable to noncontrolling interests from continuing operations ā (4.9) ā (6.9) ā (6.1) ā (6.8) Net income attributable to noncontrolling interests from discontinued operations ā (8.6) ā (8.8) ā (15.6) ā (19.4) Net income attributable to noncontrolling interests ā (13.5) ā (15.7) ā (21.7) ā (26.2) ā ā ā ā ā ā ā ā ā ā ā ā ā Net income (loss) attributable to AECOM from continuing operations ā 32.0 ā 51.4 ā 56.0 ā 71.6 Net income (loss) attributable to AECOM from discontinued operations ā 19.6 ā 26.4 ā 27.7 ā (545.8) Net income (loss) attributable to AECOM ā $ 51.6 ā $ 77.8 ā $ 83.7 ā $ (474.2) Net income (loss) attributable to AECOM per share: ā ā ā ā ā ā ā ā ā ā ā ā Basic continuing operations per share ā $ 0.20 ā $ 0.33 ā $ 0.36 ā $ 0.45 Basic discontinued operations per share ā $ 0.13 ā $ 0.17 ā $ 0.17 ā $ (3.46) Basic earnings per share ā $ 0.33 ā $ 0.50 ā $ 0.53 ā $ (3.01) ā ā ā ā ā ā ā ā ā ā ā ā ā Diluted continuing operations per share ā $ 0.20 ā $ 0.32 ā $ 0.35 ā $ 0.44 Diluted discontinued operations per share ā $ 0.12 ā $ 0.17 ā $ 0.17 ā $ (3.39) Diluted earnings per share ā $ 0.32 ā $ 0.49 ā $ 0.52 ā $ (2.95) ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted average shares outstanding: ā ā ā ā ā ā ā ā ā ā ā ā Basic ā ā 156.4 ā ā 156.6 ā ā 157.4 ā ā 157.7 Diluted ā ā 159.6 ā ā 158.4 ā ā 159.8 ā ā 160.9 |
Significant Accounting Polici_3
Significant Accounting Policies - Fiscal Year (Details) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Length of fiscal year | 371 days | 364 days | 364 days |
Minimum | |||
Length of fiscal year | 364 days | ||
Maximum | |||
Length of fiscal year | 371 days |
Significant Accounting Polici_4
Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Minimum | Building and land | |
Property, Plant and Equipment | |
Estimated useful live (in years) | 10 years |
Minimum | Furniture and fixtures | |
Property, Plant and Equipment | |
Estimated useful live (in years) | 3 years |
Minimum | Computer systems and equipment | |
Property, Plant and Equipment | |
Estimated useful live (in years) | 3 years |
Maximum | Building and land | |
Property, Plant and Equipment | |
Estimated useful live (in years) | 45 years |
Maximum | Furniture and fixtures | |
Property, Plant and Equipment | |
Estimated useful live (in years) | 10 years |
Maximum | Computer systems and equipment | |
Property, Plant and Equipment | |
Estimated useful live (in years) | 12 years |
Significant Accounting Polici_5
Significant Accounting Policies - Pension Plans (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Significant Accounting Policies | |
Market-related valuation calculation period (in years) | 5 years |
Net unrecognized gain (loss) threshold subject to amortization (in percent) | 10.00% |
New Accounting Pronouncements_2
New Accounting Pronouncements and Changes in Accounting (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 | Oct. 01, 2018 |
New Accounting Pronouncements and Changes in Accounting | ||||
Retained earnings | $ 174,248 | $ 599,548 | ||
ASU 2014-09 | ||||
New Accounting Pronouncements and Changes in Accounting | ||||
Retained earnings | $ 7,000 | |||
ASU 2016-02 | ||||
New Accounting Pronouncements and Changes in Accounting | ||||
Retained earnings | $ 87,800 |
Discontinued Operations, Good_3
Discontinued Operations, Goodwill, and Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | |
Discontinued Operations, Goodwill and Intangible Assets | |||||
Asset Impairment Charges | $ 24,900 | $ 24,900 | |||
Impairment | $ 83,600 | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 5,700 | ||||
Summary of financial information of the Disposal Group is as follows: | |||||
Write-down of assets to fair value less cost to sell | $ 247,200 | ||||
Non-current assets held for sale | 2,316,995 | 2,316,995 | 126,994 | ||
Long-term liabilities held for sale | 313,962 | 313,962 | 98,793 | ||
Management Services | |||||
Discontinued Operations, Goodwill and Intangible Assets | |||||
Consideration | $ 2,280,000 | ||||
Favorable working capital price adjustment | 122,000 | ||||
Contingent consideration | $ 120,000 | ||||
Held for sale | |||||
Summary of financial information of the Disposal Group is as follows: | |||||
Cash and cash equivalents | 194,700 | 194,700 | 109,900 | ||
Receivables and contract assets | 1,326,600 | 1,326,600 | 544,300 | ||
Other | 112,000 | 112,000 | 62,500 | ||
Current assets held for sale | 1,633,300 | 1,633,300 | 716,700 | ||
Property and equipment, net | 153,800 | 153,800 | 119,800 | ||
Goodwill | 1,798,500 | 1,798,500 | |||
Other | 364,700 | 364,700 | 254,400 | ||
Write-down of assets to fair value less cost to sell | (247,200) | ||||
Non-current assets held for sale | 2,317,000 | 2,317,000 | 127,000 | ||
Accounts payable and accrued expenses | 1,056,000 | 1,056,000 | 394,500 | ||
Contract liabilities | 88,900 | 88,900 | 73,600 | ||
Other | 18,800 | 18,800 | 1,600 | ||
Current liabilities held for sale | 1,163,700 | 1,163,700 | 469,700 | ||
Long-term liabilities held for sale | $ 314,000 | $ 314,000 | $ 98,800 |
Discontinued Operations, Good_4
Discontinued Operations, Goodwill, and Intangible Assets - Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Discontinued Operations, Goodwill and Intangible Assets | |||||||||||
Gain (loss) on disposal activities | $ 161,900 | ||||||||||
Impairment of long-lived assets, including goodwill | (336,472) | $ (615,400) | $ (168,178) | ||||||||
Net loss from discontinued operations | $ (228,000) | $ (100) | $ (130,700) | $ 18,200 | $ (526,400) | $ 43,300 | $ 35,200 | $ 28,200 | (340,591) | (419,662) | $ (18,575) |
Held for sale | |||||||||||
Discontinued Operations, Goodwill and Intangible Assets | |||||||||||
Revenue | 3,150,800 | 6,530,900 | |||||||||
Cost of revenue | 3,179,200 | 6,329,100 | |||||||||
Gross (loss) profit | (28,400) | 201,800 | |||||||||
Equity in earnings of joint ventures | (25,500) | 31,700 | |||||||||
Gain (loss) on disposal activities | 161,900 | (14,000) | |||||||||
Transaction costs | (43,200) | ||||||||||
Impairment of long-lived assets, including goodwill | (336,500) | (590,500) | |||||||||
Loss from operations | (271,700) | (371,000) | |||||||||
Other income | 1,800 | 2,500 | |||||||||
Interest expense | (40,500) | (64,800) | |||||||||
Loss before taxes | (310,400) | (433,300) | |||||||||
Income tax (benefit) expense | 30,200 | (13,600) | |||||||||
Net loss from discontinued operations | $ (340,600) | $ (419,700) |
Discontinued Operations, Good_5
Discontinued Operations, Goodwill, and Intangible Assets - Significant components included in Consolidated Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Discontinued Operations, Goodwill, and Intangible Assets | ||
Property and equipment | $ 4.6 | $ 26.9 |
Intangible assets and capitalized debt issuance costs | 26 | 66.5 |
Payments for capital expenditures | $ (19.6) | $ (20.1) |
Discontinued Operations, Good_6
Discontinued Operations, Goodwill, and Intangible Assets - Segments (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | $ 3,476,813 |
Foreign Exchange Impact | 7,400 |
Goodwill at the end of the period | 3,484,221 |
Americas | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | 2,618,600 |
Foreign Exchange Impact | (1,500) |
Goodwill at the end of the period | 2,617,100 |
International | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | 858,200 |
Foreign Exchange Impact | 8,900 |
Goodwill at the end of the period | $ 867,100 |
Discontinued Operations, Good_7
Discontinued Operations, Goodwill, and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Identifiable intangible assets with finite useful lives | ||
Intangible Assets, Net | $ 76,917 | $ 99,636 |
Backlog and customer relationships | ||
Identifiable intangible assets with finite useful lives | ||
Gross Amount | 662,800 | 661,400 |
Accumulated Amortization | (585,900) | (561,800) |
Intangible Assets, Net | $ 76,900 | $ 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 |
Discontinued Operations, Good_8
Discontinued Operations, Goodwill, and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Estimated amortization expense for the succeeding years | ||
2021 | $ 20,300 | |
2022 | 19,500 | |
2023 | 18,600 | |
2024 | 17,300 | |
2025 | 700 | |
Thereafter | 500 | |
Intangible Assets, Net | 76,917 | $ 99,636 |
Amortization expense | $ 24,100 | $ 25,200 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2018 | |
Revenue Recognition | ||||
Retained earnings | $ 174,248 | $ 599,548 | ||
ASU 2014-09 | ||||
Revenue Recognition | ||||
Retained earnings | $ 7,000 | |||
Subcontractor and other direct costs | $ 7,100,000 | $ 7,400,000 | $ 7,700,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Recognition | |||||||||||
Revenue | $ 3,569,000 | $ 3,189,700 | $ 3,245,700 | $ 3,235,600 | $ 3,513,400 | $ 3,360,200 | $ 3,412,600 | $ 3,356,300 | $ 13,239,976 | $ 13,642,455 | $ 13,878,316 |
Cost reimbursable | |||||||||||
Revenue Recognition | |||||||||||
Revenue | 5,734,500 | 5,958,200 | 5,440,300 | ||||||||
Guaranteed maximum price | |||||||||||
Revenue Recognition | |||||||||||
Revenue | 3,896,800 | 3,962,600 | 4,673,900 | ||||||||
Fixed price | |||||||||||
Revenue Recognition | |||||||||||
Revenue | 3,608,700 | 3,764,100 | |||||||||
Americas | |||||||||||
Revenue Recognition | |||||||||||
Revenue | 10,138,300 | 10,390,800 | 10,512,300 | ||||||||
Europe, Middle East, Africa | |||||||||||
Revenue Recognition | |||||||||||
Revenue | 1,620,300 | 1,752,100 | 1,816,200 | ||||||||
Asia Pacific | |||||||||||
Revenue Recognition | |||||||||||
Revenue | $ 1,481,400 | $ 1,499,600 | $ 1,549,800 |
Revenue Recognition - Performan
Revenue Recognition - Performance obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue, remaining performance obligations | ||
Performance obligation | $ 18,900 | |
Liability recognized | $ 592.7 | $ 595.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | ||
Revenue, remaining performance obligations | ||
Performance Obligation expected timing of satisfaction period | 12 months | |
Performance obligation, percent to be satisfied | 60.00% |
Revenue Recognition - Accounts
Revenue Recognition - Accounts receivable, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Billed | $ 2,419,600 | $ 2,368,200 |
Contract retentions | 524,200 | 557,500 |
Total accounts receivable-gross | 2,943,800 | 2,925,700 |
Allowance for doubtful accounts | (77,900) | (56,500) |
Total accounts receivable-net | $ 2,865,888 | $ 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 | $ 170,000 | $ 110,000 |
Trade receivables sold, outstanding | 166,600 | 91,900 |
Total | ||
Total accounts receivable-net | $ 2,865,900 | $ 2,869,200 |
Other than U.S government outstanding receivables | ||
Additional disclosures | ||
Number of clients | No | No |
Outstanding receivables (as a percent) | 10.00% | 10.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property and equipment | |||
Property and equipment, gross | $ 1,046,900 | $ 1,090,000 | |
Accumulated depreciation and amortization | (665,200) | (684,400) | |
Property and equipment, net | 381,672 | 405,605 | |
Depreciation expense | 163,400 | 137,500 | $ 125,500 |
Building and land | |||
Property and equipment | |||
Property and equipment, gross | 11,500 | 11,200 | |
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | 343,200 | 363,500 | |
Computer systems and equipment | |||
Property and equipment | |||
Property and equipment, gross | 557,400 | 582,300 | |
Furniture and fixtures | |||
Property and equipment | |||
Property and equipment, gross | $ 134,800 | $ 133,000 |
Property and Equipment - Useful
Property and Equipment - Useful Lives (Details) | 12 Months Ended |
Sep. 30, 2020 | |
Building and land | Minimum | |
Property and equipment | |
Useful Lives | 10 years |
Building and land | Maximum | |
Property and equipment | |
Useful Lives | 45 years |
Leasehold improvements | Minimum | |
Property and equipment | |
Useful Lives | 1 year |
Leasehold improvements | Maximum | |
Property and equipment | |
Useful Lives | 20 years |
Computer systems and equipment | Minimum | |
Property and equipment | |
Useful Lives | 3 years |
Computer systems and equipment | Maximum | |
Property and equipment | |
Useful Lives | 12 years |
Furniture and fixtures | Minimum | |
Property and equipment | |
Useful Lives | 3 years |
Furniture and fixtures | Maximum | |
Property and equipment | |
Useful Lives | 10 years |
Joint Ventures and Variable I_3
Joint Ventures and Variable Interest Entities - Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financial Information | ||||||||||||
Current assets | $ 7,530,366 | $ 7,534,645 | $ 7,530,366 | $ 7,534,645 | ||||||||
TOTAL ASSETS | 12,998,951 | 14,550,908 | 12,998,951 | 14,550,908 | ||||||||
Current liabilities | 6,090,454 | 6,461,754 | 6,090,454 | 6,461,754 | ||||||||
TOTAL LIABILITIES | 9,585,407 | 10,651,558 | 9,585,407 | 10,651,558 | ||||||||
Total AECOM equity | 3,292,558 | 3,690,576 | 3,292,558 | 3,690,576 | ||||||||
Noncontrolling interests | 120,986 | 208,774 | 120,986 | 208,774 | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 3,413,544 | 3,899,350 | 3,413,544 | 3,899,350 | $ 4,278,374 | $ 4,214,686 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 12,998,951 | 14,550,908 | 12,998,951 | 14,550,908 | ||||||||
Revenue | 3,569,000 | $ 3,189,700 | $ 3,245,700 | $ 3,235,600 | 3,513,400 | $ 3,360,200 | $ 3,412,600 | $ 3,356,300 | 13,239,976 | 13,642,455 | 13,878,316 | |
Consolidated Joint Ventures | ||||||||||||
Financial Information | ||||||||||||
Current assets | 536,300 | 581,300 | 536,300 | 581,300 | ||||||||
Non-current assets | 77,000 | 75,400 | 77,000 | 75,400 | ||||||||
TOTAL ASSETS | 613,300 | 656,700 | 613,300 | 656,700 | ||||||||
Current liabilities | 409,900 | 432,800 | 409,900 | 432,800 | ||||||||
Non-current liabilities | 1,500 | 1,500 | ||||||||||
TOTAL LIABILITIES | 411,400 | 432,800 | 411,400 | 432,800 | ||||||||
Total AECOM equity | 113,900 | 137,900 | 113,900 | 137,900 | ||||||||
Noncontrolling interests | 88,000 | 86,000 | 88,000 | 86,000 | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 201,900 | 223,900 | 201,900 | 223,900 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 613,300 | $ 656,700 | 613,300 | 656,700 | ||||||||
Revenue | $ 787,600 | $ 1,095,200 | $ 1,322,800 |
Joint Ventures and Variable I_4
Joint Ventures and Variable Interest Entities - Unconsolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financial Information | ||||||||||||
Current assets | $ 7,530,366 | $ 7,534,645 | $ 7,530,366 | $ 7,534,645 | ||||||||
TOTAL ASSETS | 12,998,951 | 14,550,908 | 12,998,951 | 14,550,908 | ||||||||
Current liabilities | 6,090,454 | 6,461,754 | 6,090,454 | 6,461,754 | ||||||||
TOTAL LIABILITIES | 9,585,407 | 10,651,558 | 9,585,407 | 10,651,558 | ||||||||
Joint ventures' equity | 3,413,544 | 3,899,350 | 3,413,544 | 3,899,350 | $ 4,278,374 | $ 4,214,686 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 12,998,951 | 14,550,908 | 12,998,951 | 14,550,908 | ||||||||
AECOM's investment in joint ventures | 229,312 | 256,131 | 229,312 | 256,131 | ||||||||
Joint ventures summarized financial information | ||||||||||||
Revenue | 3,569,000 | $ 3,189,700 | $ 3,245,700 | $ 3,235,600 | 3,513,400 | $ 3,360,200 | $ 3,412,600 | $ 3,356,300 | 13,239,976 | 13,642,455 | 13,878,316 | |
Cost of revenue | 3,379,100 | 3,004,600 | 3,076,900 | 3,069,800 | 3,323,700 | 3,206,400 | 3,267,800 | 3,232,900 | 12,530,416 | 13,030,800 | 13,399,283 | |
Gross profit | 189,900 | 185,100 | 168,800 | 165,800 | 189,700 | 153,800 | 144,800 | 123,400 | 709,560 | 611,655 | 479,033 | |
Net income | (223,900) | $ 94,100 | $ (77,000) | $ 53,100 | (448,000) | $ 105,400 | $ 93,500 | $ 65,100 | (153,741) | (183,990) | $ 197,127 | |
Unconsolidated Joint Ventures | ||||||||||||
Financial Information | ||||||||||||
Current assets | 1,087,200 | 1,133,500 | 1,087,200 | 1,133,500 | ||||||||
Non-current assets | 465,800 | 904,500 | 465,800 | 904,500 | ||||||||
TOTAL ASSETS | 1,553,000 | 2,038,000 | 1,553,000 | 2,038,000 | ||||||||
Current liabilities | 937,100 | 1,115,500 | 937,100 | 1,115,500 | ||||||||
Non-current liabilities | 58,900 | 182,300 | 58,900 | 182,300 | ||||||||
TOTAL LIABILITIES | 996,000 | 1,297,800 | 996,000 | 1,297,800 | ||||||||
Joint ventures' equity | 557,000 | 740,200 | 557,000 | 740,200 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,553,000 | 2,038,000 | 1,553,000 | 2,038,000 | ||||||||
AECOM's investment in joint ventures | $ 229,300 | $ 256,100 | 229,300 | 256,100 | ||||||||
Joint ventures summarized financial information | ||||||||||||
Revenue | 3,058,900 | 2,959,300 | ||||||||||
Cost of revenue | 2,993,100 | 2,876,100 | ||||||||||
Gross profit | 65,800 | 83,200 | ||||||||||
Net income | $ 59,800 | $ 83,400 |
Joint Ventures and Variable I_5
Joint Ventures and Variable Interest Entities - Equity in Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financial Information | |||||||||||
Equity in earnings of joint ventures | $ 16,800 | $ 8,600 | $ 13,500 | $ 9,900 | $ 16,900 | $ 9,200 | $ 16,600 | $ 6,600 | $ 48,781 | $ 49,320 | $ 49,357 |
Pass through joint ventures | |||||||||||
Financial Information | |||||||||||
Equity in earnings of joint ventures | 34,100 | 31,600 | 34,200 | ||||||||
Other joint ventures | |||||||||||
Financial Information | |||||||||||
Equity in earnings of joint ventures | $ 14,700 | $ 17,700 | $ 15,200 |
Pension Benefit Obligations (De
Pension Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
United States | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 252.9 | $ 232.9 | $ 251.9 |
Participant contributions | 0.1 | 0.2 | |
Interest cost | 6.4 | 8.6 | 7.4 |
Benefits and expenses paid | (16.3) | (15.2) | (16.6) |
Actuarial (gain) loss | 20.7 | 27.8 | (10.6) |
Plan settlements | (2.1) | (1.3) | |
Plan amendments | 0.6 | ||
Benefit obligation at end of year | 261.6 | 252.9 | 232.9 |
International | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 1,311.3 | 1,188.7 | 1,333.4 |
Service cost | 0.6 | 0.5 | 1.1 |
Participant contributions | 0.3 | 0.3 | 0.4 |
Interest cost | 22.4 | 29.7 | 32 |
Benefits and expenses paid | (42.9) | (41.2) | (53.7) |
Actuarial (gain) loss | 82.8 | 206.5 | (87.7) |
Plan settlements | (4.1) | (3.7) | (3) |
Plan amendments | 5.2 | ||
Plan curtailments | (0.1) | ||
Foreign currency translation (gain) loss | 69.8 | (74.7) | (33.7) |
Benefit obligation at end of year | $ 1,440.2 | $ 1,311.3 | $ 1,188.7 |
Pension Benefit Obligations - A
Pension Benefit Obligations - Asset Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 1,198.1 | ||
Employer contributions | 4 | $ 7.5 | |
Fair value of plan assets at end of year | 1,295.8 | 1,198.1 | |
United States | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 129.3 | 131.4 | $ 136.5 |
Actual return on plan assets | 11.7 | 4.5 | 4.3 |
Employer contributions | 7 | 9.8 | 7 |
Participant contributions | 0.1 | 0.2 | |
Benefits and expenses paid | (16.3) | (15.2) | (16.6) |
Plan settlements | (2.1) | (1.3) | |
Fair value of plan assets at end of year | 129.6 | 129.3 | 131.4 |
International | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 1,068.8 | 965.9 | 993.1 |
Actual return on plan assets | 59.5 | 180.3 | 29.3 |
Employer contributions | 27.7 | 28.1 | 27.8 |
Participant contributions | 0.3 | 0.3 | 0.4 |
Benefits and expenses paid | (42.9) | (41.2) | (53.7) |
Plan settlements | (4.1) | (3.7) | (3) |
Foreign currency translation gain (loss) | 56.9 | (60.9) | (28) |
Fair value of plan assets at end of year | $ 1,166.2 | $ 1,068.8 | $ 965.9 |
Pension Benefit Obligations - F
Pension Benefit Obligations - Funded Status (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
United States | |||
Reconciliation of funded status: | |||
Funded status at end of year | $ (132) | $ (123.6) | $ (101.5) |
Net amount recognized at end of year | (132) | (123.6) | (101.5) |
International | |||
Reconciliation of funded status: | |||
Funded status at end of year | (274) | (242.5) | (222.8) |
Net amount recognized at end of year | $ (274) | $ (242.5) | $ (222.8) |
Pension Benefit Obligations - B
Pension Benefit Obligations - Balance Sheet Recognition (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Amounts recognized in the consolidated balance sheets: | |||
Pension benefit obligations | $ (443,462) | $ (387,042) | |
United States | |||
Amounts recognized in the consolidated balance sheets: | |||
Accrued expenses and other current liabilities | (6,500) | (7,300) | $ (6,300) |
Pension benefit obligations | (125,500) | (116,300) | (95,200) |
Net amount recognized in the balance sheet | (132,000) | (123,600) | (101,500) |
International | |||
Amounts recognized in the consolidated balance sheets: | |||
Other non-current assets | 44,000 | 28,200 | 19,100 |
Pension benefit obligations | (318,000) | (270,700) | (241,900) |
Net amount recognized in the balance sheet | $ (274,000) | $ (242,500) | $ (222,800) |
Pension Benefit Obligations - E
Pension Benefit Obligations - Equity Recognition (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
United States | |||
Reconciliation of amounts in consolidated statements of stockholders' equity: | |||
Prior service (cost) credit | $ (0.1) | $ (0.7) | $ (0.8) |
Net loss | (133.5) | (123.1) | (94.8) |
Total recognized in accumulated other comprehensive loss | (133.6) | (123.8) | (95.6) |
International | |||
Reconciliation of amounts in consolidated statements of stockholders' equity: | |||
Prior service (cost) credit | (1.2) | (1.2) | 4.1 |
Net loss | (297.8) | (233) | (186.4) |
Total recognized in accumulated other comprehensive loss | $ (299) | $ (234.2) | $ (182.3) |
Pension Benefit Obligations - P
Pension Benefit Obligations - Periodic Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pension Plan, Defined Benefit | |||
Components of net periodic benefit cost: | |||
Applicable deferred income taxes, included in OCI arising from net prior service cost and net gain/loss | $ 15 | $ 15.9 | $ 15.8 |
United States | |||
Components of net periodic benefit cost: | |||
Interest cost on projected benefit obligation | 6.4 | 8.6 | 7.4 |
Expected return on plan assets | (7) | (9) | (9) |
Amortization of prior service costs (credits) | 0.1 | 0.1 | 0.1 |
Amortization of net loss | 5 | 3.9 | 4.1 |
Curtailment loss recognized | 0.5 | ||
Settlement loss recognized | 0.6 | 0.2 | |
Net periodic benefit cost | 5.6 | 3.8 | 2.6 |
International | |||
Components of net periodic benefit cost: | |||
Service costs | 0.6 | 0.5 | 1.1 |
Interest cost on projected benefit obligation | 22.4 | 29.7 | 32 |
Expected return on plan assets | (37.5) | (38.1) | (43.1) |
Amortization of prior service costs (credits) | 0.1 | (0.1) | (0.2) |
Amortization of net loss | 8.6 | 4.1 | 8.2 |
Settlement loss recognized | 0.5 | 0.8 | 0.3 |
Net periodic benefit cost | $ (5.3) | $ (3.1) | $ (1.7) |
Pension Benefit Obligations -_2
Pension Benefit Obligations - AOCI (Details) $ in Millions | Sep. 30, 2020USD ($) |
United States | |
Amounts included in AOCI that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |
Amortization of net actuarial losses | $ (5.9) |
Total | (5.9) |
International | |
Amounts included in AOCI that are expected to be recognized as components of net periodic benefit cost during the next fiscal year | |
Amortization of prior service credit | (0.1) |
Amortization of net actuarial losses | (8.7) |
Total | $ (8.8) |
Pension Benefit Obligations -_3
Pension Benefit Obligations - Excess of Plan Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
United States | |||
Additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets | |||
Projected benefit obligation | $ 260.7 | $ 252.5 | $ 232.2 |
Accumulated benefit obligation | 260.7 | 252.5 | 232.2 |
Fair values of plan assets | 129.6 | 129.3 | 131.3 |
Expected employer contributions in next fiscal year | 12.2 | ||
International | |||
Additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets | |||
Projected benefit obligation | 1,216.6 | 1,141.9 | 1,002.6 |
Accumulated benefit obligation | 1,211.5 | 1,132.7 | 991.9 |
Fair values of plan assets | 898.5 | $ 871.2 | $ 760.7 |
Expected employer contributions in next fiscal year | $ 28.4 |
Pension Benefit Obligations -_4
Pension Benefit Obligations - Future payments (Details) $ in Millions | Sep. 30, 2020USD ($) |
United States | |
Expected future benefit payments | |
2021 | $ 19.1 |
2022 | 18.8 |
2023 | 17.7 |
2024 | 17.6 |
2025 | 17.4 |
2026-2030 | 79.2 |
Total | 169.8 |
International | |
Expected future benefit payments | |
2021 | 50.6 |
2022 | 48.6 |
2023 | 50.5 |
2024 | 51.5 |
2025 | 52.6 |
2026-2030 | 286.4 |
Total | $ 540.2 |
Pension Benefit Obligations - U
Pension Benefit Obligations - Underlying assumptions (Details) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
United States | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate (as a percent) | 2.25% | 2.94% | 4.12% |
Weighted-average assumptions to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 2.94% | 4.12% | 3.66% |
Expected long-term rate of return on plan assets (as a percent) | 7.30% | 7.00% | 7.00% |
International | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate (as a percent) | 1.67% | 1.81% | 2.91% |
Salary increase rate (as a percent) | 2.68% | 2.52% | 2.79% |
Weighted-average assumptions to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 1.81% | 2.91% | 2.67% |
Salary increase rate (as a percent) | 2.52% | 2.79% | 2.76% |
Expected long-term rate of return on plan assets (as a percent) | 4.03% | 4.43% | 4.73% |
Pension Benefit Obligations - T
Pension Benefit Obligations - Target Allocation and Plan Assets (Details) | Sep. 30, 2020 | Sep. 30, 2019 |
United States | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 100.00% | |
Plan assets (as a percent) | 100.00% | 100.00% |
United States | Equities | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 45.00% | |
Plan assets (as a percent) | 47.00% | 45.00% |
United States | Debt. | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 43.00% | |
Plan assets (as a percent) | 42.00% | 44.00% |
United States | Cash and cash equivalents | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 2.00% | |
Plan assets (as a percent) | 1.00% | 2.00% |
United States | Property And Other | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 10.00% | |
Plan assets (as a percent) | 10.00% | 9.00% |
International | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 100.00% | |
Plan assets (as a percent) | 100.00% | 100.00% |
International | Equities | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 26.00% | |
Plan assets (as a percent) | 26.00% | 36.00% |
International | Debt. | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 53.00% | |
Plan assets (as a percent) | 54.00% | 31.00% |
International | Cash and cash equivalents | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 4.00% | |
Plan assets (as a percent) | 4.00% | 3.00% |
International | Property And Other | ||
Components of net periodic benefit cost: | ||
Target allocations (as a percent) | 17.00% | |
Plan assets (as a percent) | 16.00% | 30.00% |
Pension Benefit Obligations -_5
Pension Benefit Obligations - Asset Categories (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Post-retirement plan | |||
Fair values of plan assets | $ 1,295.8 | $ 1,198.1 | |
Cash and cash equivalents | |||
Post-retirement plan | |||
Fair values of plan assets | 50.6 | 35.7 | |
Equity and debt securities | |||
Post-retirement plan | |||
Fair values of plan assets | 442.3 | 115.5 | |
Diversified and equity funds | |||
Post-retirement plan | |||
Fair values of plan assets | 31.5 | 155.7 | |
Fixed Income Funds | |||
Post-retirement plan | |||
Fair values of plan assets | 36.2 | 36.6 | |
Common collective funds | |||
Post-retirement plan | |||
Fair values of plan assets | 707.5 | 668.7 | |
Assets held by Insurance Company | |||
Post-retirement plan | |||
Fair values of plan assets | 26.8 | ||
Derivative instruments | |||
Post-retirement plan | |||
Fair values of plan assets | 27.7 | 159.1 | |
Level 1 | |||
Post-retirement plan | |||
Fair values of plan assets | 498.6 | 299.8 | |
Level 1 | Cash and cash equivalents | |||
Post-retirement plan | |||
Fair values of plan assets | 20.2 | 21.1 | |
Level 1 | Equity and debt securities | |||
Post-retirement plan | |||
Fair values of plan assets | 442.3 | 115.5 | |
Level 1 | Diversified and equity funds | |||
Post-retirement plan | |||
Fair values of plan assets | 13 | 141.9 | |
Level 1 | Fixed Income Funds | |||
Post-retirement plan | |||
Fair values of plan assets | 23.1 | 21.3 | |
Level 2 | |||
Post-retirement plan | |||
Fair values of plan assets | 86.3 | 202.8 | |
Level 2 | Cash and cash equivalents | |||
Post-retirement plan | |||
Fair values of plan assets | 30.4 | 14.6 | |
Level 2 | Diversified and equity funds | |||
Post-retirement plan | |||
Fair values of plan assets | 15.1 | 13.8 | |
Level 2 | Fixed Income Funds | |||
Post-retirement plan | |||
Fair values of plan assets | 13.1 | 15.3 | |
Level 2 | Derivative instruments | |||
Post-retirement plan | |||
Fair values of plan assets | 27.7 | 159.1 | |
Level 3 | |||
Post-retirement plan | |||
Fair values of plan assets | 3.4 | 26.8 | $ 45 |
Level 3 | Diversified and equity funds | |||
Post-retirement plan | |||
Fair values of plan assets | 3.4 | ||
Level 3 | Assets held by Insurance Company | |||
Post-retirement plan | |||
Fair values of plan assets | 26.8 | ||
Investments measured at NAV | |||
Post-retirement plan | |||
Fair values of plan assets | 707.5 | 668.7 | |
Investments measured at NAV | Common collective funds | |||
Post-retirement plan | |||
Fair values of plan assets | $ 707.5 | $ 668.7 |
Pension Benefit Obligations - L
Pension Benefit Obligations - Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in the fair value of Level 3 assets | ||
Fair value of plan assets at beginning of year | $ 1,198.1 | |
Fair value of plan assets at end of year | 1,295.8 | $ 1,198.1 |
Level 3 | ||
Changes in the fair value of Level 3 assets | ||
Fair value of plan assets at beginning of year | 26.8 | 45 |
Actual return on plan assets, relating to assets still held at reporting date | (0.2) | 0.4 |
Actual return on plan assets, relating to assets sold during the period | (2.1) | (0.1) |
Purchases, sales and settlements | (25.4) | (17) |
Transfer into / (out of) Level 3 | 3.2 | |
Change due to exchange rate changes | 1.1 | (1.5) |
Fair value of plan assets at end of year | $ 3.4 | $ 26.8 |
Pension Benefit Obligations - M
Pension Benefit Obligations - Multiemployer (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefit Obligations | ||
Aggregate contributions to plans | $ 4 | $ 7.5 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Debt | ||
Debt | $ 2,085,000 | $ 3,352,500 |
Less: Current portion of debt and short-term borrowings | (20,900) | (98,300) |
Less: Unamortized debt issuance costs | (23,000) | (36,200) |
Long-term debt | 2,041,136 | 3,217,985 |
2014 Credit Agreement | ||
Debt | ||
Debt | 248,500 | 1,182,200 |
2014 Senior Notes | ||
Debt | ||
Debt | 797,300 | 800,000 |
2017 Senior Notes | ||
Debt | ||
Debt | 997,300 | 1,000,000 |
URS Senior Notes | ||
Debt | ||
Debt | 248,100 | |
Other Debt | ||
Debt | ||
Debt | $ 41,900 | $ 122,200 |
Debt - Scheduled Maturities (De
Debt - Scheduled Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Debt | ||
2021 | $ 20.9 | |
2022 | 17.9 | |
2023 | 244.8 | |
2024 | 5.1 | |
2024 | 799 | |
Thereafter | 997.3 | |
Total debt | $ 2,085 | $ 3,352.5 |
Debt - 2014 Credit Agreement (D
Debt - 2014 Credit Agreement (Details) $ in Millions, $ in Millions | Jul. 30, 2020USD ($) | May 01, 2020USD ($) | Jul. 01, 2018 | Mar. 13, 2018USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 13, 2018CAD ($) | Mar. 13, 2018AUD ($) | Mar. 31, 2017 | Sep. 29, 2016USD ($) | Oct. 17, 2014USD ($) |
Debt agreements | ||||||||||||
Consolidated leverage ratio | 2.7 | |||||||||||
Proceeds from secured delayed draw term loan facility | $ 4,452,078,000 | $ 7,700,774,000 | $ 8,529,014,000 | |||||||||
Term loan A | ||||||||||||
Debt agreements | ||||||||||||
Face amount | $ 185,000,000 | |||||||||||
Revolving credit facility | ||||||||||||
Debt agreements | ||||||||||||
Proceeds from secured delayed draw term loan facility | $ 248,500,000 | |||||||||||
Revolving credit facility | Euro currency rate | ||||||||||||
Debt agreements | ||||||||||||
Interest rate, basis spread (as a percent) | 0.75% | |||||||||||
2014 Credit Agreement | ||||||||||||
Debt agreements | ||||||||||||
Face amount | $ 500,000,000 | |||||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||||||
Consolidated leverage ratio | 4.5 | 4 | 4.5 | 4.5 | 4.75 | 5 | ||||||
Consolidated interest coverage ratio | 5 | |||||||||||
2014 Credit Agreement | Base Rate | ||||||||||||
Debt agreements | ||||||||||||
Interest rate, basis spread (as a percent) | 0.75% | |||||||||||
2014 Credit Agreement | Euro currency rate | ||||||||||||
Debt agreements | ||||||||||||
Interest rate, basis spread (as a percent) | 1.75% | |||||||||||
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 | ||||||||||||
Face amount | $ 510,000,000 | $ 500 | $ 250 | |||||||||
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 | ||||||||||||
Face amount | $ 600,000,000 | |||||||||||
2014 Credit Agreement | Revolving credit facility | ||||||||||||
Debt agreements | ||||||||||||
Maximum borrowing capacity | $ 1,350,000,000 | $ 1,050,000,000 | ||||||||||
Current borrowing capacity | 1,331,000,000 | $ 1,327,200,000 | ||||||||||
Outstanding letters of credit | $ 19,000,000 | $ 22,800,000 |
Debt - 2014 Senior Notes (Detai
Debt - 2014 Senior Notes (Details) - USD ($) | Mar. 16, 2018 | Oct. 06, 2014 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Jul. 21, 2020 |
Debt | ||||||||||||||
Interest expense | $ (47,500,000) | $ (35,000,000) | $ (37,100,000) | $ (40,400,000) | $ (40,200,000) | $ (40,500,000) | $ (41,400,000) | $ (39,400,000) | $ (159,914,000) | $ (161,482,000) | $ (201,023,000) | |||
2014 Senior Notes | ||||||||||||||
Debt | ||||||||||||||
Face amount | $ 2,700,000 | |||||||||||||
Cash tender | $ 639,000,000 | |||||||||||||
2014 Senior Notes | The 2022 Notes | ||||||||||||||
Debt | ||||||||||||||
Face amount | $ 800,000,000 | |||||||||||||
Interest rate (as a percent) | 5.75% | |||||||||||||
Redemption price (in percent) | 104.313% | |||||||||||||
Interest expense | $ 34,500,000 | |||||||||||||
2014 Senior Notes | The 2024 Notes | ||||||||||||||
Debt | ||||||||||||||
Face amount | $ 800,000,000 | |||||||||||||
Interest rate (as a percent) | 5.875% | |||||||||||||
Fair value of debt instrument | $ 863,000,000 | $ 863,000,000 | ||||||||||||
2014 Senior Notes | The 2024 Notes | Prior to July 15 2024 | ||||||||||||||
Debt | ||||||||||||||
Redemption price (in percent) | 100.00% | |||||||||||||
2014 Senior Notes | The 2024 Notes | On or after July 15, 2024 | ||||||||||||||
Debt | ||||||||||||||
Redemption price (in percent) | 100.00% |
Debt - 2017 Senior Notes (Detai
Debt - 2017 Senior Notes (Details) - USD ($) | Feb. 21, 2017 | Oct. 24, 2014 | Sep. 30, 2020 | Sep. 29, 2016 | Oct. 17, 2014 |
Term loan B | |||||
Debt | |||||
Amount of debt redeemed | $ 127,600,000 | ||||
Term loan A | |||||
Debt | |||||
Face amount | $ 185,000,000 | ||||
Amount of debt redeemed | 600,000,000 | ||||
Revolving credit facility | |||||
Debt | |||||
Amount of debt redeemed | 250,000,000 | ||||
2017 Senior Notes | |||||
Debt | |||||
Face amount | $ 1,000,000,000 | ||||
Fair value of debt instrument | $ 1,069,600,000 | ||||
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 (in percent) | 100.00% | ||||
2017 Senior Notes | At any time on or after December 15, 2026 | |||||
Debt | |||||
Redemption price (in percent) | 100.00% | ||||
URS Senior Notes | |||||
Debt | |||||
Face amount | $ 1,000,000,000 | ||||
Amount of debt redeemed | $ 572,300,000 | ||||
Redemption price (as percent of principal) | 101.00% |
Debt - URS Senior Notes (Detail
Debt - URS Senior Notes (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Oct. 24, 2014 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 03, 2017 | Feb. 21, 2017 | Sep. 29, 2016 | Oct. 17, 2014 |
Debt | |||||||||
Debt | $ 2,085,000 | $ 3,352,500 | |||||||
Repayments of debt | 248,522 | $ 800,000 | |||||||
Proceeds from secured delayed draw term loan facility | 4,452,078 | 7,700,774 | 8,529,014 | ||||||
Prepayment premium | $ 16,986 | $ 34,504 | |||||||
Term loan A | |||||||||
Debt | |||||||||
Face amount | $ 185,000 | ||||||||
Amount of debt redeemed | $ 600,000 | ||||||||
URS Senior Notes | |||||||||
Debt | |||||||||
Face amount | $ 1,000,000 | ||||||||
Debt | $ 248,100 | ||||||||
Redemption price (as percent of principal) | 101.00% | ||||||||
Amount of debt redeemed | $ 572,300 | ||||||||
Redemption price as a percentage of the principal amount | 101.00% | ||||||||
Prepayment premium | $ 17,000 | ||||||||
URS Senior Notes | 2017 URS Senior Notes | |||||||||
Debt | |||||||||
Interest rate (as a percent) | 3.85% | ||||||||
Amount of debt redeemed | $ 179,200 | ||||||||
URS Senior Notes | 2022 URS Senior Notes | |||||||||
Debt | |||||||||
Interest rate (as a percent) | 5.00% | ||||||||
Redemption price (as percent of principal) | 106.835% | ||||||||
Repayments of debt | $ 248,500 | ||||||||
Proceeds from secured delayed draw term loan facility | $ 248,500 | ||||||||
Redemption price as a percentage of the principal amount | 106.835% |
Debt - Other Debt and Other Ite
Debt - Other Debt and Other Items (Details) - Other Debt - Standby letter of credit - Unsecured - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 |
Debt | ||
Outstanding letters of credit | $ 510.1 | $ 470.9 |
Current borrowing capacity | $ 435.3 |
Debt - Effective Interest Rate
Debt - Effective Interest Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt | |||
Effective interest rate including effects of interest rate swap agreements | 5.3% | 5.1% | 5.1% |
Amortization of deferred debt issuance costs | $ 5.4 | $ 5 | $ 12.5 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Fair Value Measurements - Cash Flow Hedges (Details) - Designated as Hedging Instrument - Cash Flow Hedging - Interest rate swap agreements $ in Millions, $ in Millions, $ in Millions | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2019AUD ($) | Sep. 30, 2019CAD ($) |
AUD | ||||
Derivative financial instruments | ||||
Notional Amount | $ 200 | |||
Fixed Rate (as a percent) | 2.19% | 2.19% | 2.19% | |
CAD | ||||
Derivative financial instruments | ||||
Notional Amount | $ 400 | |||
Fixed Rate (as a percent) | 2.49% | 2.49% | 2.49% | |
USD | ||||
Derivative financial instruments | ||||
Notional Amount | $ 200 | $ 200 | ||
Fixed Rate (as a percent) | 2.60% | 2.60% | 2.60% | 2.60% |
Derivative Financial Instrume_4
Derivative Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap agreements | |
Derivative financial instruments | |
Losses recognized in income | $ 0 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting | |||
Retained earnings | $ 174,248 | $ 599,548 | |
Operating lease cost | |||
Operating lease cost | 191,600 | ||
Finance lease cost: | |||
Amortization of right-of-use assets | 17,100 | ||
Interest on lease liabilities | 1,900 | ||
Variable lease cost | 36,500 | ||
Short term lease cost | 19,200 | ||
Total lease cost | $ 266,300 | ||
ASU 2016-02 | |||
New Accounting Pronouncements and Changes in Accounting | |||
Retained earnings | $ 87,800 |
Leases - Additional balance she
Leases - Additional balance sheet information (Details) $ in Thousands | Sep. 30, 2020USD ($) |
ASSETS | |
Operating lease assets | $ 652,115 |
Balance Sheet classification of operating lease assets | us-gaap:OperatingLeaseRightOfUseAsset |
Finance lease assets | $ 29,100 |
Balance Sheet classification of finance lease assets | us-gaap:PropertyPlantAndEquipmentNet |
Total lease assets | $ 681,200 |
Current: | |
Operating lease liabilities | $ 168,400 |
Balance Sheet classification of operating lease liabilities | us-gaap:AccruedLiabilitiesCurrent |
Finance lease liabilities | $ 9,800 |
Balance Sheet classification of finance lease liabilities | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent |
Total current lease liabilities | $ 178,200 |
Operating lease liabilities | $ 745,287 |
Balance Sheet classification of operating lease liabilities | us-gaap:OperatingLeaseLiabilityNoncurrent |
Finance lease liabilities | $ 22,000 |
Balance Sheet classification of finance lease liabilities | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Total non-current lease liabilities | $ 767,300 |
Operating leases | |
Operating leases | 7 years 3 months 18 days |
Finance leases | 3 years 3 months 18 days |
Weighted average discount | |
Operating leases | 4.60% |
Finance leases | 4.70% |
Leases - Additional cash flow i
Leases - Additional cash flow information (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 208.7 |
Operating cash flows from finance leases | 1.8 |
Financing cash flows from finance leases | 14.7 |
Right-of-use assets obtained in exchange for new operating leases | 126.9 |
Right-of-use assets obtained in exchange for new operating leases | $ 26.4 |
Leases - Total remaining lease
Leases - Total remaining lease payments under the Company's operating lease (Details) $ in Millions | Sep. 30, 2020USD ($) |
Amounts payable under non-cancelable operating lease commitments | |
2021 | $ 212.4 |
2022 | 170.7 |
2023 | 140.4 |
2024 | 120.4 |
2025 | 105.4 |
Thereafter | 371.8 |
Total lease payments | 1,121.1 |
Less: Amounts representing interest | (207.4) |
Total lease liabilities | $ 913.7 |
Leases - Total remaining leas_2
Leases - Total remaining lease payments under the Company's Finance lease (Details) $ in Millions | Sep. 30, 2020USD ($) |
Leases | |
2021 | $ 10.3 |
2022 | 9 |
2023 | 7.6 |
2024 | 5.1 |
2025 | 1.9 |
Thereafter | 0.1 |
Total lease payments | 34 |
Less: Amounts representing interest | (2.2) |
Total lease liabilities | $ 31.8 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | Oct. 11, 2018 | Sep. 30, 2018 | Aug. 31, 2018 |
Stockholders' Equity | |||
Authorized shares to be repurchased (in shares) | $ 150 | ||
Shares repurchased and retired (in shares) | 0.6 | 4 |
Share-Based Payments - Incentiv
Share-Based Payments - Incentive Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock Incentive Plans | |||
Employer contributions, compensation expense | $ 33.7 | $ 32.3 | $ 32.3 |
Employee Stock Option | |||
Stock Incentive Plans | |||
Securities available for future issuance (in shares) | 12 | ||
Expiration term of unexercised options | 7 years | ||
Number of Options | |||
Balance at the beginning of the period (in shares) | 0.1 | 0.6 | 0.7 |
Granted (in shares) | 0.3 | ||
Exercised (in shares) | (0.1) | ||
Cancelled (in shares) | (0.5) | ||
Balance at the end of the period (in shares) | 0.4 | 0.1 | 0.6 |
Exercisable 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 | $ 31.11 |
Granted (in dollars per share) | 38.72 | ||
Exercised (in dollars per share) | 27.79 | ||
Cancelled (in dollars per share) | (31.62) | ||
Balance at the end of the period (in dollars per share) | 36.41 | 31.62 | $ 31.62 |
Exercisable at the end of the period (in dollars per share) | $ 31.62 | $ 31.62 |
Share-Based Payments - Exercisa
Share-Based Payments - Exercisable Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Information concerning outstanding and exercisable options | |||
Aggregate intrinsic value of stock options exercised | $ 0.9 | ||
Allocated Share-based Compensation Expense | $ 54.2 | $ 63.8 | $ 73.1 |
Unrecognized compensation expense | $ 69.1 | $ 74.6 | |
Vesting period | 3 years | ||
Employee Stock Option | |||
Information concerning outstanding and exercisable options | |||
Weighted average grant-date fair value of stock options granted | $ 11.30 | ||
Weighted average grant-date fair value of stock options granted (in dollars per share) | 11.30 | ||
Performance Earnings Program | |||
Information concerning outstanding and exercisable options | |||
Weighted average grant-date fair value of stock options granted | 42.99 | $ 27.53 | $ 37.69 |
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 42.99 | 27.53 | 37.69 |
Vesting period | 3 years | ||
Restricted Stock Units | |||
Information concerning outstanding and exercisable options | |||
Weighted average grant-date fair value of stock options granted | $ 41.90 | 27.73 | 36.83 |
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 41.90 | $ 27.73 | $ 36.83 |
Income Taxes - Tax (Benefit) Ex
Income Taxes - Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loss (income) from domestic operations before income tax expense | $ 52,900 | $ 133,000 | $ 100,900 | ||||||||
Income (loss) from foreign operations before income tax expense | 179,700 | 116,200 | 111,300 | ||||||||
Current: | |||||||||||
Federal | 21,800 | (17,300) | (159,700) | ||||||||
State | 12,700 | 29,800 | 2,300 | ||||||||
Foreign | 55,700 | 41,700 | 51,100 | ||||||||
Total current income tax expense (benefit) | 90,200 | 54,200 | (106,300) | ||||||||
Deferred: | |||||||||||
Federal | (21,800) | (26,100) | 119,600 | ||||||||
State | 12,800 | (24,600) | 4,100 | ||||||||
Foreign | (35,400) | 10,000 | (20,900) | ||||||||
Total deferred income tax (benefit) expense | 11,130 | (98,015) | 36,746 | ||||||||
Income tax expense (benefit) for continuing operations | $ 15,300 | $ (7,200) | $ 21,700 | $ 15,900 | $ 16,600 | $ 27,200 | $ 12,200 | $ (42,500) | 45,753 | 13,498 | (3,494) |
Total | |||||||||||
Deferred: | |||||||||||
Total deferred income tax (benefit) expense | (44,400) | (40,700) | 102,800 | ||||||||
Income tax expense (benefit) for continuing operations | $ 45,800 | $ 13,500 | $ (3,500) |
Income Taxes - Federal Rate Rec
Income Taxes - Federal Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Rate reconciliation | ||||||||||||
Tax at federal statutory rate | $ 48,800 | $ 52,000 | $ 52,400 | |||||||||
State income tax, net of federal benefit | 8,400 | 7,000 | (1,300) | |||||||||
Foreign residual income | 39,500 | 35,800 | 9,900 | |||||||||
Nondeductible costs | 15,800 | 7,600 | 2,500 | |||||||||
Return to provision | 3,200 | (3,100) | (700) | |||||||||
Foreign tax rate differential | (3,400) | (5,300) | (5,000) | |||||||||
Income tax credits and incentives | (47,800) | (44,700) | (28,600) | |||||||||
Valuation allowance | (15,900) | (26,500) | 37,800 | |||||||||
Change in uncertain tax positions | 5,100 | (200) | (21,200) | |||||||||
Exclusion of tax on non-controlling interests | (8,300) | 5,600 | (26,000) | |||||||||
Tax exempt income | (4,600) | (27,700) | ||||||||||
Audit settlement | 5,100 | 3,900 | 7,400 | |||||||||
Impact of changes in tax law | 1,500 | (12,500) | ||||||||||
Other items, net | 5,500 | (4,700) | (700) | |||||||||
Income tax expense (benefit) for continuing operations | $ 15,300 | $ (7,200) | $ 21,700 | $ 15,900 | $ 16,600 | $ 27,200 | $ 12,200 | $ (42,500) | $ 45,753 | $ 13,498 | $ (3,494) | |
Major elements contributing to the difference between the U.S. federal statutory rate of 21% for fiscal year 2020 and 24.5% for fiscal years ended 2019 and 2018 and the effective tax rate | ||||||||||||
Federal statutory rate (as a percent) | 21.00% | 21.00% | 24.50% | 35.00% | ||||||||
State income tax, net of federal benefit (as a percent) | 3.60% | 2.80% | (0.60%) | |||||||||
Foreign residual income (as a percent) | 17.00% | 14.50% | ||||||||||
Foreign residual income (as a percent) | (4.60%) | |||||||||||
Nondeductible costs (as a percent) | 6.80% | 3.10% | 1.20% | |||||||||
Change in uncertain tax positions (as a percent) | 2.20% | (0.10%) | (9.90%) | |||||||||
Return to provision, primarily foreign tax credits (as a percent) | 1.40% | (1.30%) | (0.30%) | |||||||||
Income tax credits and incentive (as a percent) | (20.60%) | (18.10%) | (13.40%) | |||||||||
Valuation allowance (as a percent) | (6.90%) | (10.70%) | 17.70% | |||||||||
Exclusion of tax on non-controlling interests (as a percent) | (3.60%) | 2.30% | (12.20%) | |||||||||
Foreign tax rate differential (as a percent) | (1.50%) | (2.10%) | (2.30%) | |||||||||
Audit settlement (as a percent) | (2.20%) | (1.60%) | (3.50%) | |||||||||
Tax exempt income (as a percent) | (1.90%) | (13.00%) | ||||||||||
Change in tax rates (as a percent) | (0.60%) | 5.90% | ||||||||||
Other items, net (as a percent) | 2.50% | (1.90%) | (0.40%) | |||||||||
Total income tax expense (as a percent) | 19.70% | 5.40% | (1.70%) |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income taxes | ||||
Valuation allowance related to net operating losses and other deferred tax assets | $ 217.5 | $ 120.6 | ||
Federal corporate tax rate (as a percent) | 21.00% | 21.00% | 24.50% | 35.00% |
Provisional income tax (benefit) | $ 38.9 | |||
Undistributed earnings from foreign subsidiaries | 79.8 | |||
One-time transition tax on accumulated foreign earnings | 53.4 | |||
Change in uncertain tax positions | $ (1.5) | 12.5 | ||
Tax benefit from income tax examination | 27.7 | |||
Tax benefit from income tax examination, R&D credits | 19.9 | |||
Tax benefit from foreign subsidiaries | $ (55.7) | (41.7) | (51.1) | |
Change in valuation allowance | 96.9 | |||
Amount of uncertain tax positions for future years | 19.9 | |||
United States | ||||
Income taxes | ||||
Valuation allowance related to net operating losses and other deferred tax assets | $ 38.1 | |||
Tax benefit from income tax examination | $ (38.1) | |||
Canada | ||||
Income taxes | ||||
Valuation allowance related to net operating losses and other deferred tax assets | 31.7 | |||
Change in valuation allowance | $ 31.7 |
Income Taxes - Deferred tax (De
Income Taxes - Deferred tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred tax assets: | |||
Compensation and benefit accruals not currently deductible | $ 119.4 | $ 98 | |
Net operating loss carryforwards | 173.2 | 132.6 | |
Self-insurance reserves | 17.6 | 11.3 | |
Research and experimentation and other tax credits | 112.9 | 138.5 | |
Pension liability | 95.1 | 78.2 | |
Accrued liabilities | 303.2 | 97.2 | |
Capital loss carryforward | 104.8 | ||
Other | 26 | 14.8 | |
Total deferred tax assets | 952.2 | 570.6 | |
Deferred tax liabilities: | |||
Unearned revenue | (40.3) | (53.4) | |
Depreciation and amortization | (106.7) | (76.3) | |
Acquired intangible assets | (24.5) | (25.1) | |
Investment in subsidiaries | (10.9) | (10.9) | |
Right of use assets | (164.9) | ||
Contingent consideration | (33.6) | ||
Total deferred tax liabilities | (380.9) | (165.7) | |
Valuation allowance | (217.5) | (120.6) | |
Net deferred tax assets | 353.8 | 284.3 | |
Income Taxes, additional disclosures | |||
Remaining gross tax asset exclusive of tax liabilities realized | 734.7 | ||
Change in valuation allowance | 96.9 | ||
Valuation allowance related to capital losses. | 71.2 | ||
Gross book-tax differences from non-U.S. subsidiaries | 1,500 | ||
Liability for unrecognized tax benefits, including potential interest and penalties, net of related tax benefit | 65.8 | 70.1 | |
Unrecognized tax benefits | 47.1 | 55.7 | $ 53.8 |
Unrecognized tax benefits that would be included in the effective tax rate if recognized | 29.5 | ||
Capital loss carryforwards | 355.7 | ||
Canada | |||
Deferred tax liabilities: | |||
Valuation allowance | (31.7) | ||
Income Taxes, additional disclosures | |||
Change in valuation allowance | 31.7 | ||
Foreign net operating loss carryforwards | 1.5 | ||
United States | |||
Deferred tax liabilities: | |||
Valuation allowance | $ (38.1) | ||
California Franchise Tax Board | Enterprise Zone Tax Credits | |||
Income Taxes, additional disclosures | |||
Unused tax credits | 14.5 | ||
Federal | |||
Income Taxes, additional disclosures | |||
Liability for unrecognized tax benefits, including potential interest and penalties, net of related tax benefit | 47.1 | 55.7 | |
Federal | Research and development | |||
Income Taxes, additional disclosures | |||
Unused tax credits | 71.2 | ||
State | |||
Income Taxes, additional disclosures | |||
Net operating loss carryforwards | 710.2 | ||
State | Research and development | |||
Income Taxes, additional disclosures | |||
Unused tax credits | $ 27.2 | ||
Foreign | |||
Income Taxes, additional disclosures | |||
Net operating loss carryforwards | $ 505.3 |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ||
Balance at the beginning of the year | $ 55.7 | $ 53.8 |
Gross increase in current period's tax positions | 2.8 | 2.9 |
Gross increase in prior years' tax positions | 0.8 | |
Gross decrease in prior years' tax positions | (7.9) | (1) |
Decrease due to settlement with tax authorities | (0.5) | |
Decrease due to lapse of statute of limitations | (3.5) | |
Gross change due to foreign exchange fluctuations | 0.5 | (0.8) |
Balance at the end of the year | 47.1 | 55.7 |
Income Taxes, additional disclosures | ||
Accrued interest, excluding any related income tax benefits | 18.9 | 20.3 |
Accrued penalties, excluding any related income tax benefits | $ 2.7 | $ 4.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share | |||||||||||
Denominator for basic earnings per share (in shares) | 160,000 | 160,100 | 158,600 | 157,300 | 157,700 | 157,400 | 156,600 | 156,400 | 159,005 | 157,044 | 159,101 |
Potential common shares (in shares) | 2,300 | 2,700 | 3,200 | ||||||||
Denominator for diluted earnings per share (in shares) | 160,000 | 161,800 | 160,700 | 160,600 | 160,900 | 159,800 | 158,400 | 159,600 | 161,292 | 159,684 | 162,261 |
Other Financial Information (De
Other Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accrued expenses and other current liabilities | |||||||||
Accrued salaries and benefits | $ 675,700 | $ 681,500 | $ 675,700 | $ 681,500 | |||||
Accrued contract costs | 1,104,700 | 927,100 | 1,104,700 | 927,100 | |||||
Other accrued expenses | 431,300 | 269,700 | 431,300 | 269,700 | |||||
Total accrued expenses | 2,211,734 | 1,878,319 | 2,211,734 | 1,878,319 | |||||
Restructuring costs | 91,900 | $ 20,300 | $ 31,200 | $ 44,900 | (16,200) | $ (15,900) | $ (63,300) | 188,345 | 95,446 |
Loss related to remeasurement of self perform at risk construction business to fair value less cost to sell | 24,900 | 24,900 | |||||||
Accrued restructuring expenses | 56,200 | 26,500 | 56,200 | 26,500 | |||||
Personnel and other costs | |||||||||
Accrued expenses and other current liabilities | |||||||||
Restructuring costs | 149,200 | 73,300 | |||||||
Real estate costs | |||||||||
Accrued expenses and other current liabilities | |||||||||
Restructuring costs | 39,100 | 22,100 | |||||||
Loss related to remeasurement of self perform at risk construction business to fair value less cost to sell | 27,400 | ||||||||
Accelerated recovery of pension entitlement | |||||||||
Accrued expenses and other current liabilities | |||||||||
Expected amount of net subsidy | 23,200 | ||||||||
Professional liability accrual | |||||||||
Accrued expenses and other current liabilities | |||||||||
Accrued contract costs | $ 596,000 | $ 536,600 | $ 596,000 | $ 536,600 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated balances | ||
Balance at the beginning of the period | $ (864,197) | $ (703,300) |
Other comprehensive income (loss) before reclassification | (96,400) | (170,900) |
Amounts reclassified from accumulated other comprehensive loss | 41,900 | 10,000 |
Balance at the end of the period | (918,674) | (864,197) |
Pension Related Adjustments | ||
Accumulated balances | ||
Balance at the beginning of the period | (302,700) | (202,300) |
Other comprehensive income (loss) before reclassification | (72,500) | (107,200) |
Amounts reclassified from accumulated other comprehensive loss | 32,400 | 6,800 |
Balance at the end of the period | (342,800) | (302,700) |
Foreign Currency Translation Adjustments | ||
Accumulated balances | ||
Balance at the beginning of the period | (548,700) | (502,200) |
Other comprehensive income (loss) before reclassification | (18,600) | (46,500) |
Balance at the end of the period | (567,300) | (548,700) |
Loss on Derivative Instruments | ||
Accumulated balances | ||
Balance at the beginning of the period | (12,800) | 1,200 |
Other comprehensive income (loss) before reclassification | (5,300) | (17,200) |
Amounts reclassified from accumulated other comprehensive loss | 9,500 | 3,200 |
Balance at the end of the period | $ (8,600) | $ (12,800) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jan. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Dec. 06, 2019 | Dec. 31, 2014 |
New York | ||||||||
Commitments and Contingencies | ||||||||
Contingency liability | $ 146 | |||||||
Percentage of claim recoveries due to seller | 10.00% | |||||||
Percentage of claim recoveries due to purchaser | 90.00% | |||||||
Montana | ||||||||
Commitments and Contingencies | ||||||||
Damages sought | $ 132 | $ 132 | $ 79 | |||||
Damages sought, counter party | $ 93 | |||||||
Department of Energy | New York | Minimum | ||||||||
Commitments and Contingencies | ||||||||
Contingency liability | 106 | |||||||
Department of Energy | New York | Maximum | ||||||||
Commitments and Contingencies | ||||||||
Contingency liability | 146 | |||||||
Capital Addition Purchase Commitments | ||||||||
Commitments and Contingencies | ||||||||
Commitment | $ 22.1 | |||||||
Commitment period | 8 years | |||||||
Standby letters of credit | ||||||||
Commitments and Contingencies | ||||||||
Contingency liability | $ 529.1 | |||||||
Surety Bond | ||||||||
Commitments and Contingencies | ||||||||
Contingency liability | 6,200 | |||||||
Collectibility of Receivables | ||||||||
Commitments and Contingencies | ||||||||
Unapproved change orders | $ 103 | |||||||
Collectibility of Receivables | New York | ||||||||
Commitments and Contingencies | ||||||||
Unapproved change orders | $ 60.4 | |||||||
Collectibility of Receivables | New York | Minimum | ||||||||
Commitments and Contingencies | ||||||||
Damages sought | 148.5 | |||||||
Collectibility of Receivables | New York | Maximum | ||||||||
Commitments and Contingencies | ||||||||
Damages sought | 329.4 | |||||||
Collectibility of Receivables | Montana | ||||||||
Commitments and Contingencies | ||||||||
Unapproved change orders | 90 | |||||||
Damages sought | $ 144 |
Reportable Segments and Geogr_3
Reportable Segments and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Summarized financial information concerning the Company's reportable segments | |||||||||||
Revenue | $ 3,569,000 | $ 3,189,700 | $ 3,245,700 | $ 3,235,600 | $ 3,513,400 | $ 3,360,200 | $ 3,412,600 | $ 3,356,300 | $ 13,239,976 | $ 13,642,455 | $ 13,878,316 |
Gross profit | 189,900 | 185,100 | 168,800 | 165,800 | 189,700 | 153,800 | 144,800 | 123,400 | 709,560 | 611,655 | 479,033 |
Equity in earnings of joint ventures | 16,800 | 8,600 | 13,500 | 9,900 | 16,900 | 9,200 | 16,600 | 6,600 | 48,781 | 49,320 | 49,357 |
General and administrative expenses | (49,500) | (54,500) | (41,000) | (43,600) | (37,400) | (37,500) | (37,400) | (35,900) | (188,535) | (148,123) | (135,787) |
Restructuring costs | (91,900) | (20,300) | (31,200) | (44,900) | 16,200 | 15,900 | 63,300 | (188,345) | (95,446) | ||
Gain on disposal activities | (3,600) | 3,590 | |||||||||
Impairment of long-lived assets | (24,900) | (24,900) | |||||||||
Operating income (loss) | 65,300 | $ 118,900 | $ 110,100 | $ 87,200 | 131,700 | $ 125,500 | $ 108,100 | $ 30,800 | 381,461 | 396,096 | 392,603 |
Segment assets | 12,998,951 | 14,550,908 | 12,998,951 | 14,550,908 | |||||||
Total | |||||||||||
Summarized financial information concerning the Company's reportable segments | |||||||||||
Revenue | 13,240,000 | 13,642,500 | 13,878,300 | ||||||||
Gross profit | 709,600 | 611,700 | 479,000 | ||||||||
Equity in earnings of joint ventures | 48,800 | 49,300 | 49,400 | ||||||||
General and administrative expenses | (188,600) | (148,200) | (135,800) | ||||||||
Restructuring costs | (188,300) | (95,400) | |||||||||
Gain on disposal activities | 3,600 | ||||||||||
Impairment of long-lived assets | (24,900) | ||||||||||
Operating income (loss) | $ 381,500 | $ 396,100 | $ 392,600 | ||||||||
Gross profit as a % of revenue | 5.40% | 4.50% | 3.50% | ||||||||
Corporate | |||||||||||
Summarized financial information concerning the Company's reportable segments | |||||||||||
General and administrative expenses | $ (180,000) | $ (143,200) | $ (124,600) | ||||||||
Restructuring costs | (188,300) | (95,400) | |||||||||
Impairment of long-lived assets | (9,700) | ||||||||||
Operating income (loss) | (368,300) | (248,300) | (124,600) | ||||||||
Segment assets | 1,573,900 | 718,400 | 1,573,900 | 718,400 | 676,900 | ||||||
Americas | |||||||||||
Summarized financial information concerning the Company's reportable segments | |||||||||||
Revenue | 10,131,500 | 10,382,600 | 10,512,300 | ||||||||
Gross profit | 580,500 | 511,500 | 403,800 | ||||||||
Equity in earnings of joint ventures | 19,800 | 17,700 | 27,100 | ||||||||
Impairment of long-lived assets | (10,800) | ||||||||||
Operating income (loss) | 600,300 | 518,400 | 430,900 | ||||||||
Segment assets | 7,929,300 | 7,437,300 | $ 7,929,300 | $ 7,437,300 | $ 7,119,900 | ||||||
Gross profit as a % of revenue | 5.70% | 4.90% | 3.80% | ||||||||
International | |||||||||||
Summarized financial information concerning the Company's reportable segments | |||||||||||
Revenue | $ 3,101,700 | $ 3,251,700 | $ 3,366,000 | ||||||||
Gross profit | 122,200 | 91,900 | 75,200 | ||||||||
Equity in earnings of joint ventures | 14,300 | 13,900 | 7,000 | ||||||||
Gain on disposal activities | 3,600 | ||||||||||
Impairment of long-lived assets | (4,400) | ||||||||||
Operating income (loss) | 136,500 | 105,000 | 82,200 | ||||||||
Segment assets | 2,454,000 | 2,247,100 | $ 2,454,000 | $ 2,247,100 | $ 2,353,200 | ||||||
Gross profit as a % of revenue | 3.90% | 2.80% | 2.20% | ||||||||
AECOM Capital | |||||||||||
Summarized financial information concerning the Company's reportable segments | |||||||||||
Revenue | $ 6,800 | $ 8,200 | |||||||||
Gross profit | 6,900 | 8,300 | |||||||||
Equity in earnings of joint ventures | 14,700 | 17,700 | $ 15,300 | ||||||||
General and administrative expenses | (8,600) | (5,000) | (11,200) | ||||||||
Operating income (loss) | 13,000 | 21,000 | 4,100 | ||||||||
Segment assets | $ 198,000 | $ 197,800 | $ 198,000 | $ 197,800 | $ 140,600 |
Reportable Segments and Geogr_4
Reportable Segments and Geographic Information - Geographic Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Geographic Information | |||
Long-Lived Assets | $ 4,984.3 | $ 4,410.3 | $ 4,493.3 |
Americas | |||
Geographic Information | |||
Long-Lived Assets | 3,733.2 | 3,399.1 | 3,469.2 |
Europe, Middle East, Africa | |||
Geographic Information | |||
Long-Lived Assets | 875.8 | 738.8 | 745.8 |
Asia Pacific | |||
Geographic Information | |||
Long-Lived Assets | $ 375.3 | $ 272.4 | $ 278.3 |
Major Clients (Details)
Major Clients (Details) - Revenue - Customer Concentration Risk | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Percentage of total revenue | |||
Period for which criteria of threshold percentage for disclosure not met in past | 5 years | ||
Maximum | |||
Percentage of total revenue | |||
Percentage of revenue accounted for by no other single client (as a percent) | 10.00% | ||
Agencies of U.S. Federal Government | |||
Percentage of total revenue | |||
Concentration (as a percent) | 8.00% | 9.00% | 8.00% |
Quarterly Financial Informati_3
Quarterly Financial Information-Unaudited (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information-Unaudited | |||||||||||
Revenue | $ 3,569,000 | $ 3,189,700 | $ 3,245,700 | $ 3,235,600 | $ 3,513,400 | $ 3,360,200 | $ 3,412,600 | $ 3,356,300 | $ 13,239,976 | $ 13,642,455 | $ 13,878,316 |
Cost of revenue | 3,379,100 | 3,004,600 | 3,076,900 | 3,069,800 | 3,323,700 | 3,206,400 | 3,267,800 | 3,232,900 | 12,530,416 | 13,030,800 | 13,399,283 |
Gross profit | 189,900 | 185,100 | 168,800 | 165,800 | 189,700 | 153,800 | 144,800 | 123,400 | 709,560 | 611,655 | 479,033 |
Equity in earnings of joint ventures | 16,800 | 8,600 | 13,500 | 9,900 | 16,900 | 9,200 | 16,600 | 6,600 | 48,781 | 49,320 | 49,357 |
General and administrative expenses | (49,500) | (54,500) | (41,000) | (43,600) | (37,400) | (37,500) | (37,400) | (35,900) | (188,535) | (148,123) | (135,787) |
Restructuring costs | 91,900 | 20,300 | 31,200 | 44,900 | (16,200) | (15,900) | (63,300) | 188,345 | 95,446 | ||
Impairment of long-lived assets | (24,900) | (24,900) | |||||||||
Gain on disposal activities | (3,600) | 3,590 | |||||||||
Income from operations | 65,300 | 118,900 | 110,100 | 87,200 | 131,700 | 125,500 | 108,100 | 30,800 | 381,461 | 396,096 | 392,603 |
Other income | 1,600 | 3,100 | 2,400 | 4,000 | 3,500 | 4,300 | 3,800 | 3,000 | 11,056 | 14,556 | 20,628 |
Interest expense | (47,500) | (35,000) | (37,100) | (40,400) | (40,200) | (40,500) | (41,400) | (39,400) | (159,914) | (161,482) | (201,023) |
Income from continuing operations before taxes | 19,400 | 87,000 | 75,400 | 50,800 | 95,000 | 89,300 | 70,500 | (5,600) | 232,603 | 249,170 | 212,208 |
Income tax expense (benefit) for continuing operations | 15,300 | (7,200) | 21,700 | 15,900 | 16,600 | 27,200 | 12,200 | (42,500) | 45,753 | 13,498 | (3,494) |
Net income from continuing operations | 4,100 | 94,200 | 53,700 | 34,900 | 78,400 | 62,100 | 58,300 | 36,900 | 186,850 | 235,672 | 215,702 |
Net income (loss) from discontinued operations | (228,000) | (100) | (130,700) | 18,200 | (526,400) | 43,300 | 35,200 | 28,200 | (340,591) | (419,662) | (18,575) |
Net income (loss) | (223,900) | 94,100 | (77,000) | 53,100 | (448,000) | 105,400 | 93,500 | 65,100 | (153,741) | (183,990) | 197,127 |
Net income attributable to noncontrolling interests from continuing operations | (4,200) | (3,100) | (5,200) | (4,000) | (6,800) | (6,100) | (6,900) | (4,900) | |||
Net income attributable to noncontrolling interests from discontinued operations | 2,200 | 1,600 | 3,900 | 8,500 | (19,400) | (15,600) | (8,800) | (8,600) | |||
Net income attributable to noncontrolling interests | (6,400) | (4,700) | (9,100) | (12,500) | (26,200) | (21,700) | (15,700) | (13,500) | (32,629) | (77,060) | (60,659) |
Net income (loss) attributable to AECOM from continuing operations | (100) | 91,100 | 48,500 | 30,900 | 71,600 | 56,000 | 51,400 | 32,000 | 170,452 | 210,962 | 195,505 |
Net income (loss) attributable to AECOM from discontinued operations | (230,200) | (1,700) | (134,600) | 9,700 | (545,800) | 27,700 | 26,400 | 19,600 | (356,822) | (472,012) | (59,037) |
Net (loss) income attributable to AECOM | $ (230,300) | $ 89,400 | $ (86,100) | $ 40,600 | $ (474,200) | $ 83,700 | $ 77,800 | $ 51,600 | $ (186,370) | $ (261,050) | $ 136,468 |
Net income attributable to AECOM per share: | |||||||||||
Basic continuing operations per share | $ 0.57 | $ 0.31 | $ 0.20 | $ 0.45 | $ 0.36 | $ 0.33 | $ 0.20 | $ 1.07 | $ 1.34 | $ 1.23 | |
Basic discontinued operations per share | $ (1.44) | (0.01) | (0.85) | 0.06 | (3.46) | 0.17 | 0.17 | 0.13 | (2.24) | (3) | (0.37) |
Basic earnings per share | (1.44) | 0.56 | (0.54) | 0.26 | (3.01) | 0.53 | 0.50 | 0.33 | (1.17) | (1.66) | 0.86 |
Earnings Per Share, Diluted [Abstract] | |||||||||||
Diluted continuing operations per share | 0.56 | 0.30 | 0.19 | 0.44 | 0.35 | 0.32 | 0.20 | 1.06 | 1.32 | 1.20 | |
Diluted discontinued operations per share | (1.44) | (0.01) | (0.84) | 0.06 | (3.39) | 0.17 | 0.17 | 0.12 | (2.22) | (2.95) | (0.36) |
Diluted earnings per share | $ (1.44) | $ 0.55 | $ (0.54) | $ 0.25 | $ (2.95) | $ 0.52 | $ 0.49 | $ 0.32 | $ (1.16) | $ (1.63) | $ 0.84 |
Weighted average shares outstanding: | |||||||||||
Basic (in shares) | 160,000 | 160,100 | 158,600 | 157,300 | 157,700 | 157,400 | 156,600 | 156,400 | 159,005 | 157,044 | 159,101 |
Diluted (in shares) | 160,000 | 161,800 | 160,700 | 160,600 | 160,900 | 159,800 | 158,400 | 159,600 | 161,292 | 159,684 | 162,261 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ in Thousands, shares in Millions | Oct. 16, 2020 | Oct. 11, 2018 | Sep. 30, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Subsequent Events | ||||||
Repurchase of stock (in shares) | 0.6 | 4 | ||||
Repurchase of stock | $ 186,953 | $ 98,208 | $ 31,101 | |||
Subsequent Event | ||||||
Subsequent Events | ||||||
Repurchase of stock (in shares) | 7 | |||||
Repurchase of stock | $ 318,700 |
Schedule II_ Valuation and Qu_2
Schedule II: Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 56.5 | $ 54.2 | $ 53.7 |
Additions Charged to Cost of Revenue | 37.6 | 23.9 | 18.1 |
Deductions | (16.4) | (21) | (16.3) |
Other and Foreign Exchange Impact | 0.2 | (0.6) | (1.3) |
Balance at the End of the Year | $ 77.9 | $ 56.5 | $ 54.2 |