Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | |
Sep. 30, 2023 | Nov. 10, 2023 | |
Document and Entity Information | ||
Document Type | 10-K | |
Document Period End Date | Sep. 30, 2023 | |
Document Annual Report | true | |
Document Transition Report | false | |
Entity File Number | 000-52423 | |
Entity Registrant Name | AECOM | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-1088522 | |
Entity Address, Address Line One | 13355 Noel Road | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 972 | |
Local Phone Number | 788-1000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ACM | |
Security Exchange Name | NYSE | |
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 | |
Entity Common Stock, Shares Outstanding | 135,987,254 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Public Float | $ 11.7 | |
Document Financial Statement Error Correction [Flag] | false | |
Entity Central Index Key | 0000868857 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
ICFR Auditor Attestation Flag | true | |
Auditor Name | Ernst & Young LLP | |
Auditor Firm ID | 42 | |
Auditor Location | Los Angeles, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,030,447 | $ 972,661 |
Cash in consolidated joint ventures | 229,759 | 199,548 |
Total cash and cash equivalents | 1,260,206 | 1,172,209 |
Accounts receivable-net | 2,544,453 | 2,317,812 |
Contract assets | 1,525,051 | 1,405,299 |
Prepaid expenses and other current assets | 730,145 | 759,402 |
Current assets held for sale | 95,221 | 79,000 |
Income taxes receivable | 14,435 | 89,088 |
TOTAL CURRENT ASSETS | 6,169,511 | 5,822,810 |
PROPERTY AND EQUIPMENT-NET | 382,638 | 428,239 |
DEFERRED TAX ASSETS-NET | 439,604 | 284,154 |
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | 139,236 | 354,983 |
GOODWILL | 3,418,930 | 3,380,761 |
INTANGIBLE ASSETS-NET | 17,769 | 35,552 |
OTHER NON-CURRENT ASSETS | 218,666 | 293,043 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 447,044 | 539,773 |
Total assets | 11,233,398 | 11,139,315 |
CURRENT LIABILITIES: | ||
Short-term debt | 3,085 | 5,032 |
Accounts payable | 2,190,755 | 2,027,314 |
Accrued expenses and other current liabilities | 2,287,546 | 2,181,408 |
Income taxes payable | 48,161 | 46,336 |
Contract liabilities | 1,188,742 | 1,051,258 |
Current liabilities held for sale | 45,625 | 49,249 |
Current portion of long-term debt | 86,369 | 43,574 |
TOTAL CURRENT LIABILITIES | 5,850,283 | 5,404,171 |
OTHER LONG-TERM LIABILITIES | 123,846 | 135,795 |
OPERATING LEASE LIABILITIES, NON-CURRENT | 548,851 | 595,308 |
LONG-TERM LIABILITIES HELD FOR SALE | 792 | 200 |
DEFERRED TAX LIABILITY-NET | 16,960 | 9,224 |
PENSION BENEFIT OBLIGATIONS | 195,586 | 232,552 |
LONG-TERM DEBT | 2,113,369 | 2,156,686 |
Total liabilities | 8,849,687 | 8,533,936 |
COMMITMENTS AND CONTINGENCIES (Note 18) | ||
AECOM STOCKHOLDERS' EQUITY: | ||
Common stock-authorized, 300,000,000 shares of $0.01 par value as of September 30, 2023 and 2022; issued and outstanding 136,210,883 and 138,933,907 shares as of September 30, 2023 and 2022, respectively | 1,362 | 1,389 |
Additional paid-in capital | 4,241,523 | 4,156,594 |
Accumulated other comprehensive loss | (926,577) | (979,675) |
Accumulated deficits | (1,103,976) | (701,654) |
TOTAL AECOM STOCKHOLDERS' EQUITY | 2,212,332 | 2,476,654 |
Noncontrolling interests | 171,379 | 128,725 |
Total owners' equity | 2,383,711 | 2,605,379 |
Total liabilities and joint ventures' equity | $ 11,233,398 | $ 11,139,315 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Sep. 30, 2022 |
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 | 136,210,883 | 138,933,907 |
Common stock, outstanding shares | 136,210,883 | 138,933,907 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements of Operations | |||
Revenue | $ 14,378,461 | $ 13,148,182 | $ 13,340,852 |
Cost of revenue | 13,432,996 | 12,300,208 | 12,542,431 |
Gross profit | 945,465 | 847,974 | 798,421 |
Equity in (losses) earnings of joint ventures | (279,352) | 53,640 | 35,044 |
General and administrative expenses | (153,575) | (147,309) | (155,072) |
Restructuring costs | (188,404) | (107,501) | (48,840) |
Income from operations | 324,134 | 646,804 | 629,553 |
Other income | 8,357 | 5,942 | 10,883 |
Interest income | 40,251 | 8,210 | 6,720 |
Interest expense | (159,342) | (110,274) | (238,352) |
Income from continuing operations before taxes | 213,400 | 550,682 | 408,804 |
Income tax expense for continuing operations | 56,052 | 136,051 | 89,011 |
Net income from continuing operations | 157,348 | 414,631 | 319,793 |
Net loss from discontinued operations | (57,207) | (79,929) | (116,813) |
Net income | 100,141 | 334,702 | 202,980 |
Net income attributable to noncontrolling interests from continuing operations | (43,262) | (25,521) | (25,109) |
Net (loss) income attributable to noncontrolling interests from discontinued operations | (1,547) | 1,430 | (4,686) |
Net income attributable to noncontrolling interests | (44,809) | (24,091) | (29,795) |
Net income attributable to AECOM from continuing operations | 114,086 | 389,110 | 294,684 |
Net loss attributable to AECOM from discontinued operations | (58,754) | (78,499) | (121,499) |
Net income attributable to AECOM | $ 55,332 | $ 310,611 | $ 173,185 |
Net income (loss) attributable to AECOM per share: | |||
Basic continuing operations per share | $ 0.82 | $ 2.76 | $ 2 |
Basic discontinued operations per share | (0.42) | (0.55) | (0.82) |
Basic earnings per share | 0.40 | 2.21 | 1.18 |
Diluted continuing operations per share | 0.81 | 2.73 | 1.97 |
Diluted discontinued operations per share | (0.42) | (0.55) | (0.81) |
Diluted earnings per share | $ 0.39 | $ 2.18 | $ 1.16 |
Weighted average shares outstanding: | |||
Basic | 138,614 | 140,768 | 147,279 |
Diluted | 140,109 | 142,696 | 149,676 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Consolidated Statements of Comprehensive Income | |||
Net income | $ 100,141 | $ 334,702 | $ 202,980 |
Other comprehensive income (loss), net of tax: | |||
Net unrealized gain on derivatives, net of tax | 2,165 | 41,002 | 4,541 |
Foreign currency translation adjustments | 59,720 | (220,043) | (12,601) |
Pension adjustments, net of tax | (8,719) | 98,893 | 26,591 |
Other comprehensive income (loss), net of tax | 53,166 | (80,148) | 18,531 |
Comprehensive income, net of tax | 153,307 | 254,554 | 221,511 |
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax | (44,877) | (23,241) | (30,029) |
Comprehensive income attributable to AECOM, net of tax | $ 108,430 | $ 231,313 | $ 191,482 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficits Cumulative effect of accounting standard adoption | Accumulated Deficits | Parent Cumulative effect of accounting standard adoption | Parent | Non-Controlling Interest | Cumulative effect of accounting standard adoption | Total |
BALANCE at Sep. 30, 2020 | $ 1,570 | $ 4,035,414 | $ (918,674) | $ 174,248 | $ 3,292,558 | $ 120,986 | $ 3,413,544 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 173,185 | 173,185 | 29,795 | 202,980 | ||||||
Other comprehensive income (loss) | 18,297 | 18,297 | 234 | 18,531 | ||||||
Issuance of stock | 25 | 58,733 | 58,758 | 58,758 | ||||||
Repurchases of stock | (163) | (23,348) | (843,580) | (867,091) | (867,091) | |||||
Stock-based compensation | 44,742 | 44,742 | 44,742 | |||||||
Other transactions with noncontrolling interests | 405 | 405 | ||||||||
Disposal of noncontrolling interest of business sold | (24,039) | (24,039) | ||||||||
Contributions from noncontrolling interests | 271 | 271 | ||||||||
Distributions to noncontrolling interests | (10,545) | (10,545) | ||||||||
BALANCE at Sep. 30, 2021 | 1,432 | 4,115,541 | (900,377) | $ (7,979) | (504,126) | $ (7,979) | 2,712,470 | 117,107 | $ (7,979) | 2,829,577 |
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 310,611 | 310,611 | 24,091 | 334,702 | ||||||
Dividends declared | (85,260) | (85,260) | (85,260) | |||||||
Other comprehensive income (loss) | (79,298) | (79,298) | (850) | (80,148) | ||||||
Issuance of stock | 25 | 52,605 | 52,630 | 52,630 | ||||||
Repurchases of stock | (68) | (50,023) | (422,879) | (472,970) | (472,970) | |||||
Stock-based compensation | 38,471 | 38,471 | 38,471 | |||||||
Other transactions with noncontrolling interests | 772 | 772 | ||||||||
Contributions from noncontrolling interests | 185 | 185 | ||||||||
Distributions to noncontrolling interests | (12,580) | (12,580) | ||||||||
BALANCE at Sep. 30, 2022 | 1,389 | 4,156,594 | (979,675) | (701,654) | 2,476,654 | 128,725 | 2,605,379 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net income | 55,332 | 55,332 | 44,809 | 100,141 | ||||||
Dividends declared | (100,872) | (100,872) | (100,872) | |||||||
Other comprehensive income (loss) | 53,098 | 53,098 | 68 | 53,166 | ||||||
Issuance of stock | 19 | 64,964 | 64,983 | 64,983 | ||||||
Repurchases of stock | (46) | (25,917) | (356,782) | (382,745) | (382,745) | |||||
Stock-based compensation | 45,882 | 45,882 | 45,882 | |||||||
Contributions from noncontrolling interests | 17,225 | 17,225 | ||||||||
Distributions to noncontrolling interests | (19,448) | (19,448) | ||||||||
BALANCE at Sep. 30, 2023 | $ 1,362 | $ 4,241,523 | $ (926,577) | $ (1,103,976) | $ 2,212,332 | $ 171,379 | $ 2,383,711 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 100,141 | $ 334,702 | $ 202,980 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 175,725 | 170,886 | 176,400 |
Equity in losses (earnings) of unconsolidated joint ventures | 282,291 | (46,303) | (39,104) |
Distribution of earnings from unconsolidated joint ventures | 41,178 | 27,175 | 46,358 |
Non-cash stock compensation | 45,882 | 38,471 | 44,742 |
Prepayment premium on redemption of unsecured senior notes | 117,500 | ||
Impairment of long-lived assets | 86,199 | 105,194 | |
Loss on sale of discontinued operations | 43,222 | 48,095 | 52,532 |
Foreign currency translation | 969 | (31,529) | (42,728) |
Deferred income tax (benefit) expense | (135,878) | 22,821 | (48,265) |
Other | 6,388 | 15,295 | 16,063 |
Changes in operating assets and liabilities: | |||
Accounts receivable and contract assets | (402,498) | 236,605 | 533,006 |
Prepaid expenses and other assets | 131,903 | 132,003 | (100,526) |
Accounts payable | 169,514 | (102,873) | (250,142) |
Accrued expenses and other current liabilities | 97,239 | 48,019 | (84,073) |
Contract liabilities | 137,484 | (7,434) | 103,999 |
Other long-term liabilities | (83,779) | (172,297) | (129,266) |
Net cash provided by operating activities | 695,980 | 713,636 | 704,670 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Payments for sale of discontinued operations, net of cash disposed | (42,261) | (265,876) | |
Investment in unconsolidated joint ventures | (59,772) | (26,672) | (57,388) |
Return of investment in unconsolidated joint ventures | 20,874 | 11,723 | 8,110 |
Proceeds from sale of investments | 5,977 | 10,242 | 15,507 |
Proceeds from disposal of property and equipment | 344 | 8,951 | 14,822 |
Payments for capital expenditures | (105,600) | (137,017) | (136,262) |
Net cash used in by investing activities | (138,177) | (175,034) | (421,087) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from borrowings under credit agreements | 3,506,668 | 3,618,585 | 3,638,916 |
Repayments of borrowings under credit agreements | (3,552,639) | (3,657,308) | (2,726,347) |
Redemption of unsecured senior notes | (797,252) | ||
Prepayment premium on redemption of unsecured senior notes | (117,500) | ||
Cash paid for debt issuance costs | (155) | (11,280) | |
Dividends paid | (96,192) | (63,288) | |
Proceeds from issuance of common stock | 32,897 | 26,666 | 25,686 |
Proceeds from exercise of stock options | 6,168 | 4,038 | |
Payments to repurchase common stock | (379,284) | (472,970) | (867,091) |
Net distributions to noncontrolling interests | (2,223) | (12,395) | (10,274) |
Other financing activities | 11,670 | (27,450) | (11,429) |
Net cash used in financing activities | (472,935) | (588,315) | (872,533) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 512 | (8,307) | 5,493 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 85,380 | (58,020) | (583,457) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,176,772 | 1,234,792 | 1,818,249 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 1,262,152 | 1,176,772 | 1,234,792 |
LESS: CASH AND CASH EQUIVALENTS INCLUDED IN CURRENT ASSETS HELD FOR SALE | (1,946) | (4,563) | (5,596) |
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS AT END OF YEAR | 1,260,206 | 1,172,209 | 1,229,196 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest paid | (153,975) | (104,644) | (255,679) |
Net income taxes paid | $ (78,448) | $ (104,742) | $ (114,464) |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
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 Company’s overhead rates, operating systems and cost proposals to ensure that the Company accounted for such costs in accordance with the Cost Accounting Standards of the FAR (CAS). If the DCAA determines the Company has not accounted for such costs consistent with CAS, the DCAA may disallow these costs. There can be no assurance that audits by the DCAA or other governmental agencies will not result in material cost disallowances in the future. Cash and Cash Equivalents Allowance for Doubtful Accounts ● Client type—federal or state and local government or commercial client; ● Historical contract performance; ● Historical collection and delinquency trends; ● Client credit worthiness; and ● General economic conditions. 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 stockholders’ 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 Company’s fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date. Property and Equipment 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 Company’s impairment tests are performed at the operating segment level as they represent the Company’s reporting units. Goodwill is evaluated for impairment either by assessing qualitative factors or by performing a quantitative assessment. Qualitative factors, such as overall financial performance, industry or market considerations, or other relevant events, are assessed to determine if it is more likely than not that the fair value of the reporting units is less than their carrying amounts. During a quantitative 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 On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act, which significantly changed U.S. tax law and included a provision to tax global intangible low-taxed income (GILTI) of foreign subsidiaries. The Company recognizes taxes due under the GILTI provision as a current period expense. |
New Accounting Pronouncements a
New Accounting Pronouncements and Changes in Accounting | 12 Months Ended |
Sep. 30, 2023 | |
New Accounting Pronouncements and Changes in Accounting | |
New Accounting Pronouncements and Changes in Accounting | 2. New Accounting Pronouncements and Changes in Accounting In December 2019, the Financial Accounting Standards Board (FASB) issued new accounting guidance which simplifies the accounting for income taxes. The guidance amends certain exceptions to the general principles of Accounting Standards Codification (ASC) 740, Income Taxes In October 2021, the FASB issued final guidance to companies that apply ASC 606, Revenue from Contracts with Customers |
Discontinued Operations, Goodwi
Discontinued Operations, Goodwill, and Intangible Assets | 12 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations, Goodwill, and Intangible Assets | |
Discontinued Operations, Goodwill, and Intangible Assets | 3. Discontinued Operations, Goodwill, and Intangible Assets In the first quarter of fiscal 2020, management approved a plan to dispose of via sale the Company’s self-perform at-risk construction businesses. These businesses include the Company’s civil infrastructure, power, and oil and gas construction businesses that were previously reported in the Company’s Construction Services segment. After consideration of the relevant facts, the Company concluded the assets and liabilities of its 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 would have a major effect on the Company’s operations and financial results and qualified for presentation as discontinued operations in accordance with FASB ASC 205-20. Accordingly, the financial results of the self-perform at-risk construction businesses are presented in the Consolidated Statement of Operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of these businesses 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. The Company completed the sale of its civil infrastructure construction business to affiliates of Oroco Capital in the second quarter of fiscal 2021. In the first quarter of fiscal 2022, the Company recorded an additional $40.0 million loss primarily related to revisions of estimates for its working capital obligation to be paid and a contingent consideration receivable. In the second quarter of fiscal 2023, the Company recorded a $38.9 million loss related to a revised estimate of its contingent consideration receivable recognized at the sale. Under the terms of the sale agreement, the Company made the required cash payments and delivered the cash and cash equivalents, including cash in consolidated joint ventures, on the balance sheet at closing. As a result, the Company recorded the net cash impact of the sale as a use of cash in the investing section of its statement of cash flows. On January 28, 2022, the Company completed the sale of its oil and gas construction business to affiliates of Graham Maintenance Services LP for a purchase price of $14 million, subject to cash, debt and working capital adjustments. The Company recorded a pre-tax gain of approximately $3.0 million on the sale, net of transaction costs. During the third quarter of fiscal 2023, the Company collected approximately $9.2 million cash payment for contingent consideration completing this transaction. The following table represents summarized balance sheet information of assets and liabilities held for sale (in millions): September 30, September 30, 2023 2022 Cash and cash equivalents $ 1.9 $ 4.6 Receivables and contract assets 93.3 66.2 Other — 8.2 Current assets held for sale $ 95.2 $ 79.0 Property and equipment, net $ 14.2 $ 8.0 Write-down of assets to fair value less cost to sell (14.2) (8.0) Non-current assets held for sale $ — $ — Accounts payable and accrued expenses $ 45.6 $ 49.2 Current liabilities held for sale $ 45.6 $ 49.2 Long-term liabilities held for sale $ 0.8 $ 0.2 The following table represents summarized income statement information of discontinued operations (in millions): Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 Revenue $ 212.8 $ 347.4 $ 771.5 Cost of revenue 223.2 360.2 760.5 Gross (loss) profit (10.4) (12.8) 11.0 Equity in earnings of joint ventures (2.9) (7.4) 4.0 Loss on disposal activities (50.6) (48.1) (52.5) Transaction costs (0.2) (9.7) (15.3) Impairment of long-lived assets — — (105.2) Loss from operations (64.1) (78.0) (158.0) Other loss (1.0) — — Interest expense — (0.1) (0.5) Loss before taxes (65.1) (78.1) (158.5) Income tax (benefit) expense (7.9) 1.8 (41.7) Net loss from discontinued operations $ (57.2) $ (79.9) $ (116.8) The significant components included in the Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions): Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 Payments for capital expenditures $ (6.2) $ (2.7) $ (7.3) The changes in the carrying value of goodwill by reportable segment for the year ended September 30, 2023 were as follows: Foreign September 30, Exchange September 30, 2022 Impact 2023 (in millions) Americas $ 2,610.7 $ 3.3 $ 2,614.0 International 770.1 34.8 804.9 Total $ 3,380.8 $ 38.1 $ 3,418.9 The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives as of September 30, 2023 and 2022, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows: September 30, 2023 September 30, 2022 Gross Accumulated Intangible Gross Accumulated Intangible Amortization Amount Amortization Assets, Net Amount Amortization Assets, Net Period (in millions) (years) Customer relationships $ 663.8 $ (646.0) $ 17.8 $ 663.0 $ (627.4) $ 35.6 1 - 11 Amortization expense of acquired intangible assets included within cost of revenue was $18.6 million and $18.9 million for the years ended September 30, 2023 and 2022, respectively. The following table presents estimated amortization expense of existing intangible assets for the succeeding years: Fiscal Year (in millions) 2024 $ 17.1 2025 0.7 Total $ 17.8 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition. | |
Revenue Recognition | 4. Revenue Recognition The Company follows accounting 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, which it believes to be the best measure of progress towards completion of the performance obligation. In the course of providing its services, the Company routinely subcontracts for services and incurs other direct costs on behalf of its clients. These costs are passed through to clients and, in accordance with GAAP, are included in the Company’s revenue and cost of revenue. These pass-through revenues for the years ended September 30, 2023, 2022 and 2021 were $7.7 billion, $6.8 billion and $7.2 billion, respectively. Recognition of revenue and profit is dependent upon a number of factors, including the accuracy of a variety of estimates made at the balance sheet date, such as engineering progress, material quantities, the achievement of milestones, penalty provisions, labor productivity and cost estimates. Additionally, the Company is required to make estimates for the amount of consideration to be received, including bonuses, awards, incentive fees, claims, unpriced change orders, penalties, and liquidated damages. Variable consideration is included in the estimate of the transaction price only to the extent that a significant reversal would not be probable. Management continuously monitors factors that may affect the quality of its estimates, and material changes in estimates are disclosed accordingly. Costs attributable to claims are treated as costs of contract performance as incurred. The following summarizes the Company’s major contract types: Cost Reimbursable Contracts Cost reimbursable contracts include cost-plus fixed fee, cost-plus fixed rate, and time-and-materials price contracts. Under cost-plus contracts, the Company charges clients for its costs, including both direct and indirect costs, plus a negotiated fee or rate. The Company recognizes revenue based on actual direct costs incurred and the applicable fixed rate or portion of the fixed fee earned as of the balance sheet date. Under time-and-materials price contracts, the Company negotiates hourly billing rates and charges its clients based on the actual time that it expends on a project. In addition, clients reimburse the Company for materials and other direct incidental expenditures incurred in connection with its performance under the contract. The Company may apply a practical expedient to recognize revenue in the amount in which it has the right to invoice if its right to consideration is equal to the value of performance completed to date. Guaranteed Maximum Price Contracts (GMP) GMP contracts share many of the same contract provisions as cost-plus and fixed-price contracts. As with cost-plus contracts, clients are provided a disclosure of all the project costs, and a lump sum or percentage fee is separately identified. The Company provides clients with a guaranteed price for the overall project (adjusted for change orders issued by clients) and a schedule including the expected completion date. Cost overruns or costs associated with project delays in completion could generally be the Company’s responsibility. For many of the Company’s commercial or residential GMP contracts, the final price is generally not established until the Company has subcontracted a substantial percentage of the trade contracts with terms consistent with the master contract, and it has negotiated additional contractual limitations, such as waivers of consequential damages as well as aggregate caps on liabilities and liquidated damages. Revenue is recognized for GMP contracts as project costs are incurred relative to total estimated project costs. Fixed-Price Contracts Fixed-price contracts include both lump-sum and fixed-unit price contracts. Under lump-sum contracts, the Company performs all the work under the contract for a specified fee. Lump-sum contracts are typically subject to price adjustments if the scope of the project changes or unforeseen conditions arise. Under fixed-unit price contracts, the Company performs a number of units of work at an agreed price per unit with the total payment under the contract determined by the actual number of units delivered. Revenue is recognized for fixed-price contracts using the input method measured on a cost-to-cost basis as the Company believes this is the best measure of progress towards completion. The following tables present the Company’s revenues disaggregated by revenue sources: Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Cost reimbursable $ 6,128.8 $ 5,454.9 $ 5,319.4 Guaranteed maximum price 4,887.7 4,325.0 4,582.7 Fixed price 3,362.0 3,368.3 3,438.8 Total revenue $ 14,378.5 $ 13,148.2 $ 13,340.9 Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Americas $ 10,976.4 $ 9,941.6 $ 10,228.3 Europe, Middle East, India, Africa 1,937.3 1,759.8 1,691.3 Asia-Australia-Pacific 1,464.8 1,446.8 1,421.3 Total revenue $ 14,378.5 $ 13,148.2 $ 13,340.9 As of September 30, 2023, the Company had allocated $21.9 billion of transaction price to unsatisfied or partially satisfied performance obligations, of which approximately 55% 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 $1,043.7 million and $565.2 million during the years ended September 30, 2023 and 2022, respectively, that was included in contract liabilities as of September 30, 2022 and 2021, respectively. The Company’s timing of revenue recognition may not be consistent with its rights to bill and collect cash from its clients. Those rights are generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of work or when services are performed. The Company’s accounts receivables represent amounts billed to clients that have yet to be collected and represent an unconditional right to cash from its clients. Contract assets represent the amount of contract revenue recognized but not yet billed pursuant to contract terms or accounts billed after the balance sheet date. Contract liabilities represent billings as of the balance sheet date, as allowed under the terms of a contract, but not yet recognized as contract revenue pursuant to the Company’s revenue recognition policy. Net accounts receivable consisted of the following: Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Billed $ 2,122.2 $ 1,931.4 Contract retentions 516.5 490.4 Total accounts receivable—gross 2,638.7 2,421.8 Allowance for doubtful accounts and credit losses (94.2) (104.0) Total accounts receivable—net $ 2,544.5 $ 2,317.8 Substantially all contract assets as of September 30, 2023 and September 30, 2022 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 $160 million and $110 million as of September 30, 2023 and 2022, respectively. The asset related to the Deactivation, Demolition, and Removal Project retained from the MS Purchaser as defined in 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 but nonetheless represent an unconditional right to cash. The Company considers a broad range of information to estimate expected credit losses including the related ages of past due balances, projections of credit losses based on historical trends, and collection history and credit quality of its clients. Negative macroeconomic trends or delays in payment of outstanding receivables could result in an increase in the estimated credit losses. No single client accounted for more than 10% of the Company’s outstanding receivables at September 30, 2023 and 2022. The Company sold trade receivables to financial institutions, of which $291.0 million and $240.3 million were outstanding as of September 30, 2023 and 2022, respectively. The Company does not retain financial or legal obligations for these receivables that would result in material losses. The Company’s ongoing involvement is limited to the remittance of customer payments to the financial institutions with respect to the sold trade receivables. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Property and Equipment | |
Property and Equipment | 5. Property and Equipment Property and equipment, at cost, consists of the following: Fiscal Year Ended September 30, September 30, Useful Lives 2023 2022 (years) (in millions) Building and land $ 10.4 $ 9.9 10 - 45 Leasehold improvements 329.4 339.7 1 - 20 Computer systems and equipment 716.7 672.1 3 - 12 Furniture and fixtures 97.9 103.1 3 - 10 Total 1,154.4 1,124.8 Accumulated depreciation and amortization (771.8) (696.6) Property and equipment, net $ 382.6 $ 428.2 Depreciation expense for the fiscal years ended September 30, 2023, 2022 and 2021 was $152.3 million, $147.0 million, and $143.6 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, 2023 | |
Joint Ventures and Variable Interest Entities | |
Joint Ventures and Variable Interest Entities | 6. Joint Ventures and Variable Interest Entities The Company’s joint ventures provide architecture, engineering, program management, construction management, operations and maintenance services, and invest in real estate projects. Joint ventures, the combination of two or more partners, are generally formed for a specific project. Management of the joint venture is typically controlled by a joint venture executive committee, comprised of representatives from the joint venture partners. The joint venture executive committee normally provides management oversight and controls decisions which could have a significant impact on the joint venture. Some of the Company’s joint ventures have no employees and minimal operating expenses. For these joint ventures, the Company’s employees perform work for the joint venture, which is then billed to a third-party customer by the joint venture. These joint ventures function as pass - The Company also has joint ventures that have their own employees and operating expenses, and to which the Company generally makes a capital contribution. The Company accounts for these joint ventures either as consolidated entities or equity method investments based on the criteria further discussed below. The Company follows guidance on the consolidation of variable interest entities (VIEs) that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. The process for identifying the primary beneficiary of a VIE requires consideration of the factors that indicate a party has the power to direct the activities that most significantly impact the joint venture’s economic performance, including powers granted to the joint venture’s program manager, powers contained in the joint venture governing board and, to a certain extent, a company’s economic interest in the joint venture. The Company analyzes its joint ventures and classifies them as either: ● a VIE that must be consolidated because the Company is the primary beneficiary or the joint venture is not a VIE and the Company holds the majority voting interest with no significant participative rights available to the other partners; or ● a VIE that does not require consolidation and is treated as an equity method investment because the Company is not the primary beneficiary or the joint venture is not a VIE and the Company does not hold the majority voting interest. As part of the above analysis, if it is determined that the Company has the power to direct the activities that most significantly impact the joint venture’s economic performance, the Company considers whether or not it has the obligation to absorb losses or rights to receive benefits of the VIE that could potentially be significant to the VIE. Contractually required support provided to the Company’s joint ventures is discussed in Note 18. Summary of financial information of the consolidated joint ventures is as follows: September 30, September 30, 2023 2022 (in millions) Current assets $ 806.3 $ 630.8 Non-current assets 75.9 73.8 Total assets $ 882.2 $ 704.6 Current liabilities $ 779.6 $ 530.6 Non-current liabilities 1.5 1.5 Total liabilities 781.1 532.1 Total AECOM (deficit) equity (54.9) 56.7 Noncontrolling interests 156.0 115.8 Total owners’ equity 101.1 172.5 Total liabilities and owners’ equity $ 882.2 $ 704.6 Total revenue of the consolidated joint ventures was $1,984.3 million, $1,411.7 million, and $826.8 million for the years ended September 30, 2023, 2022 and 2021, respectively. The assets of the Company’s consolidated joint ventures are restricted for use only by the particular joint venture and are not available for the general operations of the Company. Summary of financial information of the unconsolidated joint ventures, as derived from their unaudited financial statements, is as follows: September 30, September 30, 2023 2022 (in millions) Current assets $ 1,177.4 $ 1,279.4 Non-current assets 996.3 1,128.7 Total assets $ 2,173.7 $ 2,408.1 Current liabilities $ 605.9 $ 751.4 Non-current liabilities 441.7 521.3 Total liabilities 1,047.6 1,272.7 Joint ventures’ equity 1,126.1 1,135.4 Total liabilities and joint ventures’ equity $ 2,173.7 $ 2,408.1 AECOM’s investment in joint ventures $ 139.2 $ 355.0 Twelve Months Ended September 30, September 30, 2023 2022 (in millions) Revenue $ 1,248.2 $ 1,801.5 Cost of revenue 1,170.7 1,743.1 Gross profit $ 77.5 $ 58.4 Net income $ 72.9 $ 52.1 Summary of AECOM’s equity in earnings of unconsolidated joint ventures is as follows: Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Pass-through joint ventures $ 24.5 $ 29.2 $ 23.6 Other joint ventures (303.9) 24.4 11.4 Total $ (279.4) $ 53.6 $ 35.0 During fiscal 2023, the Company initiated a process to explore strategic options for the AECOM Capital business, consistent with the Company's focus on its professional services business. During the third quarter of fiscal 2023, the Company identified indicators of impairment in the equity method investments held in its AECOM Capital segment. Specifically, the Company identified evidence that the carrying value of certain of the investments in its real estate portfolio were in excess of their fair values. The Company concluded it no longer had the intent to retain certain of these investments for a period of time sufficient to allow for an anticipated recovery in market value. In the third quarter of fiscal 2023, the Company recorded an impairment loss of $307.0 million to reduce the carrying value of these investments to their estimated fair values. This impairment did not relate to investments in respect of which affiliates of AECOM Capital provide advisory services or manage third party capital. AECOM Capital will continue to manage existing investment vehicles and investments in a manner consistent with their current obligations. Fair value was determined using Level 3 inputs such as forecasted cash flows and comparable sales prices. |
Pension Benefit Obligations
Pension Benefit Obligations | 12 Months Ended |
Sep. 30, 2023 | |
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 employee’s years of creditable service and compensation; however, all U.S. defined benefit plans are closed to new participants and have frozen accruals. The Company also sponsors various non-qualified plans in the U.S.; all of these plans are frozen. Outside the U.S., the Company sponsors various pension plans, which are appropriate to the country in which the Company operates, some of which are government mandated. The following tables provide reconciliations of the changes in the U.S. and international plans’ benefit obligations, reconciliations of the changes in the fair value of assets for the last three years ended September 30, and reconciliations of the funded status as of September 30 of each year. Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Change in benefit obligation: Benefit obligation at beginning of year $ 198.1 $ 791.2 $ 265.4 $ 1,470.8 $ 283.9 $ 1,440.3 Service cost — 0.3 — 0.5 — 0.5 Participant contributions 0.1 0.2 0.1 0.3 0.1 0.3 Interest cost 9.8 47.7 4.7 24.1 4.3 21.6 Benefits and expenses paid (17.2) (42.2) (18.4) (44.3) (18.5) (48.6) Actuarial (gain) loss (8.8) (112.5) (51.9) (458.1) (3.7) (4.7) Plan settlements (1.5) (1.5) (1.8) (2.2) (0.7) (5.9) Transfers in 0.7 — — — — — Plan amendments — — — — — 0.4 Foreign currency translation (gain) loss — 73.0 — (199.9) — 66.9 Benefit obligation at end of year $ 181.2 $ 756.2 $ 198.1 $ 791.2 $ 265.4 $ 1,470.8 Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Change in plan assets Fair value of plan assets at beginning of year $ 101.4 $ 683.5 $ 138.9 $ 1,251.8 $ 129.6 $ 1,166.2 Actual return on plan assets 7.8 (54.2) (27.2) (374.5) 14.7 61.1 Employer contributions 8.2 24.8 9.8 23.6 13.7 25.2 Participant contributions 0.1 0.2 0.1 0.3 0.1 0.3 Benefits and expenses paid (17.2) (42.2) (18.4) (44.3) (18.5) (48.6) Plan settlements (1.5) (1.5) (1.8) (2.2) (0.7) (5.9) Foreign currency translation (loss) gain — 62.7 — (171.2) — 53.5 Fair value of plan assets at end of year $ 98.8 $ 673.3 $ 101.4 $ 683.5 $ 138.9 $ 1,251.8 Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Reconciliation of funded status: Funded status at end of year $ (82.4) $ (82.9) $ (96.7) $ (107.7) $ (126.5) $ (219.0) Contribution made after measurement date N/A N/A N/A N/A N/A N/A Net amount recognized at end of year $ (82.4) $ (82.9) $ (96.7) $ (107.7) $ (126.5) $ (219.0) The following table sets forth the amounts recognized in the consolidated balance sheets as of September 30, 2023, 2022 and 2021: Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Amounts recognized in the consolidated balance sheets: Other non-current assets $ — $ 38.7 $ — $ 36.8 $ — $ 47.5 Accrued expenses and other current liabilities (8.4) — (8.6) — (9.1) — Pension benefit obligations (74.0) (121.6) (88.1) (144.5) (117.4) (266.5) Net amount recognized in the balance sheet $ (82.4) $ (82.9) $ (96.7) $ (107.7) $ (126.5) $ (219.0) The following table details the reconciliation of amounts in the consolidated statements of stockholders’ equity for the fiscal years ended September 30, 2023, 2022 and 2021: Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Reconciliation of amounts in consolidated statements of stockholders’ equity: Prior service cost $ (0.1) $ (1.2) $ (0.1) $ (1.2) $ (0.1) $ (1.6) Net loss (77.5) (207.1) (91.7) (187.1) (116.5) (279.5) Total recognized in accumulated other comprehensive loss $ (77.6) $ (208.3) $ (91.8) $ (188.3) $ (116.6) $ (281.1) The components of net periodic benefit cost other than the service cost component are included in other income in the consolidated statement of operations. The following table details the components of net periodic benefit cost for the Company’s pension plans for fiscal years ended September 30, 2023, 2022 and 2021: Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Components of net periodic benefit cost: Service costs $ — $ 0.3 $ — $ 0.5 $ — $ 0.5 Interest cost on projected benefit obligation 9.8 47.7 4.7 24.1 4.3 21.6 Expected return on plan assets (5.8) (60.8) (5.6) (41.4) (6.5) (43.5) Amortization of prior service costs — 0.1 — 0.1 — 0.1 Amortization of net loss (gain) 3.5 (0.6) 5.6 6.9 5.9 9.2 Settlement (gain) loss recognized (0.1) 0.2 0.2 0.3 0.2 0.8 Net periodic benefit cost (credit) $ 7.4 $ (13.1) $ 4.9 $ (9.5) $ 3.9 $ (11.3) 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 $3.1 million, $18.8 million, and $9.3 million in the years ended September 30, 2023, 2022 and 2021, respectively. Amounts included in accumulated other comprehensive loss as of September 30, 2023 that are expected to be recognized as components of net periodic benefit cost during fiscal 2024 are (in millions): U.S. Int’l Amortization of prior service cost $ — $ (0.1) Amortization of net actuarial (losses) gain (3.1) 2.3 Total $ (3.1) $ 2.2 The table below provides additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets. Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Projected benefit obligation $ 168.8 $ 628.1 $ 184.8 $ 601.4 $ 247.8 $ 1,248.8 Accumulated benefit obligation $ 168.8 $ 628.1 $ 184.8 $ 600.1 $ 247.8 $ 1,243.9 Fair value of plan assets $ 98.8 $ 506.5 $ 101.4 $ 456.9 $ 138.9 $ 982.4 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 $22.2 million to the international plans in fiscal 2024. 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 $12.9 million to U.S. plans in fiscal 2024. The table below provides the expected future benefit payments, in millions: Year Ending September 30, U.S. Int’l 2024 $ 20.2 $ 47.1 2025 19.3 45.0 2026 19.1 46.3 2027 18.1 47.8 2028 17.4 49.3 2029-2033 74.3 267.6 Total $ 168.4 $ 503.1 The underlying assumptions for the pension plans are as follows: Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Weighted-average assumptions to determine benefit obligation: Discount rate 5.76 % 5.65 % 5.40 % 5.27 % 2.46 % 1.98 % Salary increase rate N/A 3.06 % N/A 3.48 % N/A 3.13 % Weighted-average assumptions to determine net periodic benefit cost: Discount rate 5.40 % 5.27 % 2.46 % 1.98 % 2.20 % 1.67 % Salary increase rate N/A 3.48 % N/A 3.13 % N/A 2.68 % Expected long-term rate of return on plan assets 7.00 % 6.04 % 6.25 % 3.93 % 6.80 % 3.95 % 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 Company’s target allocation for 2023 and pension plan asset allocation, both U.S. and international, as of September 30, 2023 and 2022: Percentage of Plan Assets as of September 30, Target Allocations 2023 2022 U.S. Int’l U.S. Int’l U.S. Int’l Asset Category: Equities 32 % 27 % 33 % 24 % 36 % 20 % Debt 58 61 56 62 48 47 Cash 2 — 2 4 5 15 Property and other 8 12 9 10 11 18 Total 100 % 100 % 100 % 100 % 100 % 100 % The Company’s 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 Company’s 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 plan’s 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 7.00% and 6.04% weighted-average long-term rate of return on assets assumption for the fiscal year ended September 30, 2023 for U.S. and non-U.S. plans, respectively. As of September 30, 2023, the fair values of the Company’s pension plan assets by major asset categories were as follows: Fair Value Measurement as of September 30, 2023 Total Quoted Significant Carrying Prices in Other Significant Value as of Active Observable Unobservable Investments September 30, Markets Inputs Inputs measured at 2023 (Level 1) (Level 2) (Level 3) NAV (in millions) Cash and cash equivalents $ 29.5 $ 20.2 $ 9.3 $ — $ — Debt securities 338.3 338.3 — — — Investment funds: Diversified and equity funds 43.5 30.3 13.2 — — Fixed income funds 26.1 21.7 4.4 — — Common collective funds 372.0 — — — 372.0 Derivative instruments (37.3) 1.5 (38.8) — — Total $ 772.1 $ 412.0 $ (11.9) $ — $ 372.0 As of September 30, 2022, the fair values of the Company’s pension plan assets by major asset categories were as follows: Fair Value Measurement as of September 30, 2022 Total Quoted Significant Carrying Prices in Other Significant Value as of Active Observable Unobservable Investments September 30, Markets Inputs Inputs measured at 2022 (Level 1) (Level 2) (Level 3) NAV (in millions) Cash and cash equivalents $ 104.8 $ 99.0 $ 5.8 $ — $ — Debt securities 339.1 339.1 — — — Investment funds: Diversified and equity funds 22.2 7.3 14.9 — — Fixed income funds 7.9 5.7 2.2 — — Common collective funds 451.6 — — — 451.6 Derivative instruments (140.7) — (140.7) — — Total $ 784.9 $ 451.1 $ (117.8) $ — $ 451.6 Changes for the year ended September 30, 2022 in the fair value of the Company’s recurring post-retirement plan Level 3 assets are as follows: Actual return Actual return on plan assets, on plan assets, Change September 30, relating to relating to Transfer due to 2021 assets still assets sold Purchases, into / exchange September 30, Beginning held at during the sales and (out of) rate 2022 balance reporting date period settlements Level 3 changes Ending balance (in millions) Level 3 Assets $ 4.0 $ — $ (0.2) $ (3.5) $ — $ (0.3) $ — Cash equivalents are mostly comprised of short-term money-market instruments and are valued at cost, which approximates fair value. For 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, not traded on an active exchange, 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, 2023, 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 redemption notice periods and are redeemable at the NAV, less transaction fees. 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 plan’s unfunded vested liability. The Company’s aggregate contributions to these multiemployer plans were $3.0 million and $2.9 million for the years ended September 30, 2023 and 2022, respectively. At September 30, 2023 and 2022, none of the plans in which the Company participates are individually significant to its consolidated financial statements. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2023 | |
Debt | |
Debt | 8. Debt Debt consisted of the following: September 30, September 30, 2023 2022 (in millions) Credit Agreement $ 1,119.8 $ 1,143.3 2027 Senior Notes 997.3 997.3 Other debt 100.2 84.0 Total debt 2,217.3 2,224.6 Less: Current portion of debt and short-term borrowings (89.5) (48.6) Less: Unamortized debt issuance costs (14.4) (19.3) Long-term debt $ 2,113.4 $ 2,156.7 The following table presents, in millions, scheduled maturities of the Company’s debt as of September 30, 2023: Fiscal Year 2024 $ 89.5 2025 49.6 2026 412.6 2027 1,009.2 2028 656.4 Thereafter — Total $ 2,217.3 Credit Agreement On February 8, 2021, the Company entered into the 2021 Refinancing Amendment to the Credit Agreement (as amended, modified or otherwise supplemented, the “Credit Agreement”), pursuant to which the Company amended and restated its Syndicated Credit Facility Agreement, dated as of October 17, 2014 (as amended prior to February 8, 2021, the “Original Credit Agreement”), between the Company, as borrower, Bank of America, N.A., as administrative agent, and other parties thereto. At the time of amendment, the Credit Agreement consisted of a $1,150,000,000 revolving credit facility (the “Revolving Credit Facility”) and a $246,968,737.50 term loan A facility (the “Term A Facility,” together with the Revolving Credit Facility, the “Credit Facilities”), each of which mature on February 8, 2026. The outstanding loans under the Term A Facility were borrowed in U.S. dollars. Loans under the Revolving Credit Facility may be borrowed, and letters of credit thereunder may be issued, in U.S. dollars or in certain foreign currencies. The proceeds of the Revolving Credit Facility may be used from time to time for ongoing working capital and for other general corporate purposes. The proceeds of the Revolving Credit Facility and the Term A Loan facility borrowed on February 8, 2021 were used to refinance the existing revolving credit facility and the existing term loan facility under the Original Credit Agreement and to pay related fees and expenses. The Credit Agreement permits the Company to designate certain of its subsidiaries as additional co-borrowers from time to time. Currently, there are no co-borrowers under the Credit Facilities. On April 13, 2021, the Company entered into Amendment No. 10 to the Credit Agreement, pursuant to which the lenders thereunder provided a secured term B credit facility (the “Term B Facility”) to the Company in an aggregate principal amount of $700,000,000. The Term B Facility matures on April 13, 2028. The proceeds of the Term B Facility were used to fund the purchase price, fees and expenses in connection with the Company’s cash tender offer to purchase up to $700,000,000 aggregate purchase price (not including any accrued and unpaid interest) of its outstanding 5.875% Senior Notes due 2024. On June 25, 2021, the Company entered into Amendment No. 11 to the Credit Agreement, pursuant to which lenders thereunder have provided the Company an additional $215,000,000 in aggregate principal amount under the Term A Facility. The Company used the net proceeds from the increase in the Term A Facility (together with cash on hand), to (i) redeem all of the Company’s remaining 5.875% Senior Notes due 2024 and (ii) pay fees and expenses related to such redemption. On May 23, 2023, the Company entered into Amendment No. 12 to the Credit Agreement, pursuant to which LIBOR as a benchmark rate of interest was replaced by, in the case of US Dollar-denominated loans, a secured overnight financing rate subject to a spread adjustment, and, in the case of loans denominated in other currencies, other customary successor rates, subject in certain cases to a spread adjustment. On May 23, 2023, the Company entered into Amendment No. 13 to the Credit Agreement, pursuant to which the spread adjustments with respect to the Revolving Credit Facility and the Term A Facility was amended. The applicable interest rate for loans under the Term B Facility is calculated at a per annum rate equal to, at the Company’s option, (a) the Term SOFR (as defined in the Credit Agreement) plus 1.75% or (b) the Base Rate (as defined in the Credit Agreement) plus 0.75%. The applicable interest rate for U.S. Dollar-denominated loans under the Revolving Credit Facility and the Term A Facility is calculated at a per annum rate equal to, at the Company’s option, (a) the Term SOFR (as defined in the Credit Agreement) plus an applicable margin (the “SOFR Applicable Margin”), which is currently at 1.2250% or (b) the Base Rate (as defined in the Credit Agreement) plus an applicable margin (the “Base Rate Applicable Margin,” and together with the SOFR Applicable Margin, the “Applicable Margins”), which is currently at 0.2250%. The applicable interest rate for loans under the Revolving Credit Facility denominated in other currencies is calculated at a per annum rate equal to a customary floating reference rate for such currency specified in the Credit Agreement plus the SOFR Applicable Margin. The Credit Agreement includes certain environmental, social and governance (ESG) metrics relating to the Company’s CO 2 Some of the Company’s material subsidiaries (the “Guarantors”) have guaranteed the Company’s obligations of the borrowers under the Credit Agreement, subject to certain exceptions. The borrowers’ obligations under the Credit Agreement are secured by a lien on substantially all of the Company’s assets and its Guarantors’ assets, subject to certain exceptions. The Credit Agreement contains customary negative covenants that include, among other things, limitations on the ability of the Company and certain of its subsidiaries, subject to certain exceptions, to incur liens and debt, make investments, dispositions, and restricted payments, change the nature of their business, consummate mergers, consolidations and the sale of all or substantially all of their respective assets, taken as a whole, and transact with affiliates. The Company is also required to maintain a consolidated interest coverage ratio of at least 3.00 to 1.00 and a consolidated leverage ratio of less than or equal to 4.00 to 1.00 (subject to certain adjustments in connection with permitted acquisitions), tested on a quarterly basis (the “Financial Covenants”). The Financial Covenants do not apply to the Term B Facility. The Company’s consolidated leverage ratio was 2.00 to 1.00 at September 30, 2023. As of September 30, 2023, the Company was in compliance with the covenants of the Credit Agreement. The Credit Agreement contains customary affirmative covenants, including, among other things, compliance with applicable law, preservation of existence, maintenance of properties and of insurance, and keeping proper books and records. The Credit Agreement contains customary events of default, including, among other things, nonpayment of principal, interest or fees, cross-defaults to other debt, inaccuracies of representations and warranties, failure to perform covenants, events of bankruptcy and insolvency, change of control and unsatisfied judgments, subject in certain cases to notice and cure periods and other exceptions. At September 30, 2023 and September 30, 2022, letters of credit totaled $4.4 million and $4.4 million, respectively, under our Revolving Credit Facility. As of September 30, 2023 and September 30, 2022, we had $1,145.6 million and $1,145.6 million, respectively, available under our revolving credit facility. 2027 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 “2027 Senior Notes”). On June 30, 2017, the Company completed an exchange offer to exchange the unregistered 2027 Senior Notes for registered notes, as well as related guarantees. As of September 30, 2023, the estimated fair value of the 2027 Senior Notes was approximately $939.9 million. The fair value of the 2027 Senior Notes as of September 30, 2023 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 2027 Senior Notes. Interest is payable on the 2027 Senior Notes at a rate of 5.125% per annum. Interest on the 2027 Senior Notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2017. The 2027 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 2027 Senior Notes, at a redemption price equal to 100% of their principal amount, plus a “make whole” premium as of the redemption date, and accrued and unpaid interest to the redemption date. On or after December 15, 2026, the Company may redeem all or part of the 2027 Senior Notes at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest on the redemption date. The indenture pursuant to which the 2027 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 2027 Senior Notes as of September 30, 2023. Other Debt and Other Items Other debt consists primarily of obligations under capital leases and loans, and unsecured credit facilities. The Company’s unsecured credit facilities are primarily used for standby letters of credit issued in connection with general and professional liability insurance programs and for contract performance guarantees. At September 30, 2023 and September 30, 2022, these outstanding standby letters of credit totaled $878.9 million and $640.3 million, respectively. As of September 30, 2023, the Company had $416.7 million available under these unsecured credit facilities. Effective Interest Rate The Company’s average effective interest rate on its total debt, including the effects of the interest rate swap and interest rate cap agreements, during the years ended September 30, 2023, 2022 and 2021 was 5.3%, 3.8% and 4.4%, respectively. Interest expense in the consolidated statements of operations included amortization of deferred debt issuance costs for the years ended September 30, 2023, 2022 and 2021 of $4.9 million, $4.9 million and $10.2 million, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments and Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
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 interest rate derivative contracts to hedge interest rate exposures on the Company’s variable rate debt. The Company enters into foreign currency derivative contracts with financial institutions to reduce the risk that its cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. The Company’s hedging program is not designated for trading or speculative purposes. The Company recognizes derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value. The Company records changes in the fair value (i.e., gains or losses) of the derivatives that have been designated as accounting hedges in the accompanying consolidated statements of operations as cost of revenue, interest expense or to accumulated other comprehensive loss in the accompanying consolidated balance sheets. Cash Flow Hedges The Company uses interest rate swap and interest rate cap agreements designated as cash flow hedges to limit exposure to variable interest rates on portions of the Company’s debt. The Company initially reports any gain on the effective portion of a cash flow hedge as a component of accumulated other comprehensive loss. Depending on the type of cash flow hedge, the gain is subsequently reclassified against 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 or interest rate cap agreements would be recognized in other income. During the third quarter of fiscal 2023, the hedged debt index was changed from LIBOR to SOFR. The notional principal, fixed rates and related effective and expiration dates of the Company’s outstanding interest rate swap agreements were as follows: September 30, 2023 Notional Amount Notional Amount Fixed Effective Expiration Currency (in millions) Rate Date Date USD 400.0 1.283 % February 2023 March 2028 September 30, 2022 Notional Amount Notional Amount Fixed Effective Expiration Currency (in millions) Rate Date Date USD 200.0 2.60 % March 2018 February 2023 USD 400.0 1.349 % February 2023 March 2028 In the fourth quarter of fiscal 2021, the Company entered into new interest rate swap agreements with a notional value of $400.0 million to manage the interest rate exposure of its variable rate loans. The new swaps will become effective February 2023 and terminate in March 2028. By entering into the swap agreements, the Company converted a portion of the SOFR rate-based liability into a fixed rate liability. The Company will pay a fixed rate of 1.283% and receive payment at the prevailing one-month SOFR. In the third quarter of fiscal 2022, the Company purchased interest rate cap agreements with a notional value of $300.0 million to manage interest rate exposure of its variable rate loans. The caps became effective on June 30, 2022 and terminate in March 2028. The caps reduce the Company’s exposure to one-month SOFR. In the event one-month SOFR exceeds 3.465%, the Company will pay the spread between prevailing one-month SOFR and 3.465%. 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, 2023, 2022 and 2021. Fair Value Measurements The Company’s non-pension financial assets and liabilities recorded at fair value relate to the interest rate swap and interest rate cap agreements included in other current assets and other non-current assets on September 30, 2023 and were $17.2 million and $37.5 million, respectively. The fair values of the interest rate swap and interest rate cap agreements included in other current assets and other non-current assets on September 30, 2022 were $9.4 million and $41.8 million, respectively. The fair values of the interest rate swap and interest rate cap agreements were derived by taking the net present value of the expected cash flows using observable market inputs (Level 2) such as SOFR rate curves, futures, volatilities and basis spreads (when applicable). See Note 17 for accumulated balances and reporting period activities of derivatives related to reclassifications out of accumulated other comprehensive income for the years ended September 30, 2023, 2022 and 2021. Additionally, there were no material losses recognized in income due to amounts excluded from effectiveness testing from the Company’s interest rate swap agreements. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Sep. 30, 2023 | |
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 Company’s 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 Company’s 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 Company’s 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, 2023 | |
Leases | |
Leases | 11. Leases The Company and its subsidiaries are lessees in non-cancelable leasing agreements for office buildings and equipment. Substantially all of the Company’s office building leases are operating leases, and its equipment leases are both operating and finance leases. The Company groups lease and non-lease components for its equipment leases into a single lease component but separates lease and non-lease components for its office building leases. The Company recognizes a right-of-use asset and lease liability for its operating leases at the commencement date equal to the present value of the contractual minimum lease payments over the lease term. The present value is calculated using the rate implicit in the lease, if known, or the Company’s incremental secured borrowing rate. The discount rate used for operating leases is primarily determined based on an analysis of the Company’s incremental secured borrowing rate, while the discount rate used for finance leases is primarily determined by the rate specified in the lease. The related lease payments are expensed on a straight-line basis over the lease term, including, as applicable, any free-rent period during which the Company has the right to use the asset. For leases with renewal options where the renewal is reasonably assured, the lease term, including the renewal period, is used to determine the appropriate lease classification and to compute periodic rental expense. Leases with initial terms shorter than 12 months are not recognized on the balance sheet, and lease expense is recognized on a straight-line basis. During the fourth quarter of fiscal 2023, the Company approved a restructuring plan primarily to optimize its office real estate portfolio with its freedom to grow strategy, which initiated a review of the carrying value of right-of-use assets and leasehold improvements. In connection with the review, the Company identified leased assets that were no longer recoverable. The Company recorded an impairment charge of $86.2 million to reduce its right-of-use assets and leasehold improvements to their fair values and recorded the expense in restructuring costs on the Consolidated Statement of Operations. Fair value was determined primarily using Level 3 inputs, such as discounted cash flows. The components of lease expenses are as follows: Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 (in millions) Operating lease cost $ 164.0 $ 172.5 $ 186.5 Finance lease cost: Amortization of right-of-use assets 23.1 18.0 13.0 Interest on lease liabilities 2.6 2.2 2.0 Variable lease cost 34.1 34.0 35.5 Total lease cost $ 223.8 $ 226.7 $ 237.0 Additional balance sheet information related to leases is as follows: (in millions except as noted) Balance Sheet Classification September 30, 2023 September 30, 2022 Assets: Operating lease assets Operating lease right-of-use assets $ 447.0 $ 539.8 Finance lease assets Property and equipment – net 64.8 49.4 Total lease assets $ 511.8 $ 589.2 Liabilities: Current: Operating lease liabilities Accrued expenses and other current liabilities $ 139.8 $ 145.6 Finance lease liabilities Current portion of long-term debt 25.0 18.1 Total current lease liabilities 164.8 163.7 Non-current: Operating lease liabilities Operating lease liabilities, noncurrent 548.9 595.3 Finance lease liabilities Long-term debt 39.8 32.0 Total non-current lease liabilities $ 588.7 $ 627.3 As of September 30, 2023 September 30, 2022 September 30, 2021 Weighted average remaining lease term (in years): Operating leases 6.4 6.5 6.9 Finance leases 2.9 3.1 3.5 Weighted average discount rates: Operating leases 4.3 % 4.0 % 4.3 % Finance leases 4.1 % 3.8 % 4.3 % Additional cash flow information related to leases is as follows: Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 188.3 $ 201.8 $ 221.4 Operating cash flows from finance leases 2.5 2.2 2.0 Financing cash flows from finance leases 23.7 19.8 13.7 Right-of-use assets obtained in exchange for new operating leases 96.6 90.9 102.7 Right-of-use assets obtained in exchange for new finance leases 37.5 26.2 28.5 Total remaining lease payments under both the Company’s operating and finance leases are as follows: Operating Leases Finance Leases Fiscal Year (in millions) 2024 $ 164.4 $ 27.2 2025 142.3 21.3 2026 112.8 14.3 2027 86.0 5.8 2028 75.7 0.5 Thereafter 213.1 — Total lease payments $ 794.3 $ 69.1 Less: Amounts representing interest $ (105.6) $ (4.3) Total lease liabilities $ 688.7 $ 64.8 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity | |
Stockholders' Equity | 12. Stockholders’ Equity Common Stock Units |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Sep. 30, 2023 | |
Share-based Payments | |
Share-based Payments | 13. Share-Based Payments Defined Contribution Plans Stock Incentive Plans The fair value of the Company’s employee stock option awards is estimated on the date of grant. The expected term of awards granted represents the period of time the awards are expected to be outstanding. The risk-free interest rate is based on U.S. Treasury bond rates with maturities equal to the expected term of the option on the grant date. The Company uses historical data as a basis to estimate the probability of forfeitures. 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 primarily based on that day’s closing market price of the Company’s common stock. Restricted stock unit, PEP unit, and Stock Option activity for the year ended September 30 was as follows: Weighted Weighted Average Average Weighted Restricted Grant-Date Grant-Date Average Stock Units Fair Value PEP Units Fair Value Stock Options Exercise Price (in millions) (in millions) (in millions) Outstanding at September 30, 2020 2.1 $ 35.56 1.6 $ 33.86 0.4 $ 36.41 Granted 0.4 $ 49.21 0.3 $ 52.76 — $ — PEP units earned (unearned) — $ — 0.1 $ 37.37 — $ — Vested / Exercised (0.9) $ 36.24 (0.6) $ 38.13 (0.1) $ 31.62 Cancelled (0.3) $ 36.89 (0.2) $ 37.53 — $ — Outstanding at September 30, 2021 1.3 $ 38.88 1.2 $ 37.22 0.3 $ 38.72 Granted 0.3 $ 74.30 0.2 $ 85.46 — $ — PEP units earned (unearned) — $ — 0.6 $ 27.90 — $ — Vested / Exercised (0.5) $ 29.44 (1.3) $ 27.90 — $ — Cancelled (0.1) $ 49.74 — $ 56.64 — $ — Outstanding at September 30, 2022 1.0 $ 53.05 0.7 $ 60.60 0.3 $ 38.72 Granted 0.3 $ 83.64 0.2 $ 94.64 — $ — PEP units earned (unearned) — $ — 0.2 $ 43.19 — $ — Vested / Exercised (0.4) $ 44.35 (0.4) $ 43.19 (0.2) $ 38.72 Cancelled (0.1) $ 62.09 — $ 71.71 — $ — Outstanding at September 30, 2023 0.8 $ 68.34 0.7 $ 75.54 0.1 $ 38.72 Total compensation expense related to these share-based payments including stock options was $45.9 million, $38.5 million, and $44.7 million during the years ended September 30, 2023, 2022 and 2021, respectively. Unrecognized compensation expense related to total share-based payments outstanding as of September 30, 2023 and 2022 was $48.3 million and $45.9 million, respectively, to be recognized on a straight-line basis over the awards’ respective vesting periods which are generally three years. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Income Taxes | 14. Income Taxes Income (loss) before income taxes included loss from domestic operations of $129.2 million, income of $235.2 million, and income of $98.6 million for fiscal years ended September 30, 2023, 2022 and 2021 and income from foreign operations of $342.6 million, $315.4 million, and $310.2 million for fiscal years ended September 30, 2023, 2022 and 2021. Income tax expense was comprised of: Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Current: Federal $ 67.7 $ 22.8 $ 32.2 State 71.9 16.0 6.8 Foreign 52.8 75.8 53.2 Total current income tax expense 192.4 114.6 92.2 Deferred: Federal (71.8) 22.1 (28.8) State (84.3) 11.8 18.8 Foreign 19.8 (12.4) 6.8 Total deferred income tax benefit (136.3) 21.5 (3.2) Total income tax expense $ 56.1 $ 136.1 $ 89.0 The major elements contributing to the difference between the U.S. federal statutory rate of 21% for fiscal years ended September 30, 2023, 2022 and 2021 and the effective tax rate are as follows: Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 Amount % Amount % Amount % (in millions) Tax at federal statutory rate $ 44.8 21.0 % $ 115.6 21.0 % $ 85.8 21.0 % State income tax, net of federal benefit (7.1) (3.3) 20.2 3.7 8.0 2.0 Foreign residual income 59.4 27.8 46.4 8.4 45.6 11.1 Valuation allowance 16.6 7.8 (18.0) (3.3) 12.4 3.0 Nondeductible costs 10.7 5.0 19.7 3.6 6.0 1.5 Change in uncertain tax positions 9.4 4.4 15.4 2.8 8.5 2.1 Audit settlement 1.9 0.9 (1.5) (0.3) 10.4 2.5 Foreign tax rate differential 0.2 0.1 1.1 0.2 8.8 2.1 Income tax credits and incentives (68.2) (31.9) (51.0) (9.3) (51.3) (12.5) Exclusion of tax on non-controlling interests (9.4) (4.4) (5.1) (0.9) (6.1) (1.5) Tax exempt income (3.3) (1.5) (5.9) (1.1) (5.4) (1.3) Tax rate changes (3.2) (1.5) (4.1) (0.7) (26.8) (6.5) Return to provision (0.5) (0.2) (1.5) (0.3) (9.5) (2.3) Other items, net 4.8 2.1 4.8 0.9 2.6 0.6 Total income tax expense $ 56.1 26.3 % $ 136.1 24.7 % $ 89.0 21.8 % During fiscal 2023, valuation allowances in the amount of $21.0 million related to the AECOM Capital impairment charge were established for the portion of the charge that is not expected to be realized. During fiscal 2022, valuation allowances in the amount of $21.9 million primarily related to net operating losses in certain foreign entities were released due to sufficient positive evidence. The positive evidence included a realignment of the Company’s global transfer pricing methodology which resulted in forecasting the utilization of the net operating losses within the foreseeable future. During fiscal 2021, the United Kingdom enacted a corporate tax rate increase from 19% to 25% beginning April 2023 requiring deferred tax assets and liabilities to be remeasured. The remeasurement resulted in a $25.9 million tax benefit, which is included in tax rate changes above. During fiscal 2021, the Company partially settled its U.S. federal audit for fiscal 2015 and 2016 and recorded tax expense of $13.2 million due primarily to changes in tax attributes. 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: Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Deferred tax assets: Compensation and benefit accruals not currently deductible $ 92.2 $ 91.6 Net operating loss carryforwards 102.3 113.7 Self-insurance reserves 23.2 4.5 Research and experimentation and other tax credits 43.1 111.4 Pension liability 44.7 52.1 Accrued liabilities 295.1 280.4 Capital loss carryforward 64.0 64.4 Partnership investment 102.0 — Other 7.1 5.3 Total deferred tax assets 773.7 723.4 Deferred tax liabilities: Unearned revenue (7.0) (1.5) Depreciation and amortization (13.1) (111.4) Acquired intangible assets (5.4) (11.2) Investment in subsidiaries (10.7) (10.8) Right of use assets (94.0) (125.6) Contingent consideration (34.2) (33.6) Other (15.5) — Total deferred tax liabilities (179.9) (294.1) Valuation allowance (171.2) (154.4) Net deferred tax assets $ 422.6 $ 274.9 As of September 30, 2023, and 2022, the Company has available unused federal, foreign and state net operating loss (NOL) carryforwards of respectively As of September 30, 2023 and 2022, gross deferred tax assets were $773.7 million and $723.4 million, respectively. The Company has recorded a valuation allowance of $171.2 million and $154.4 million as of September 30, 2023 and 2022, 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 Company’s 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 $602.5 million will be realized and, as such, no additional valuation allowance has been provided. The net increase in the valuation allowance of $16.8 million is primarily attributable to an increase in valuation allowances of $21.0 million related to the AECOM Capital impairment charge in the US, a decrease in valuation allowances on foreign net operating losses and currency translation adjustments of $3.3 million, and decreases in valuation allowances of $0.9 million related to state net operating losses and credits. 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 $1.3 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, 2023, and 2022, the Company had a liability for unrecognized tax benefits, including potential interest and penalties, net of related tax benefit, totaling $79.5 million and $70.5 million, respectively. The gross unrecognized tax benefits as of September 30, 2023 and 2022 were $62.1 million and $55.2 million, respectively, excluding interest, penalties, and related tax benefit. Of the $62.1 million, approximately $60.7 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: Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Balance at the beginning of the year $ 55.2 $ 46.4 Gross increase in current period’s tax positions 3.5 17.4 Gross increase in prior years’ tax positions 17.9 2.4 Gross decrease in prior years’ tax positions (13.3) (8.0) Decrease due to settlement with tax authorities (1.0) (1.4) Decrease due to lapse of statute of limitations — (0.5) Gross change due to foreign exchange fluctuations (0.2) (1.1) Balance at the end of the year $ 62.1 $ 55.2 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, 2023, the accrued interest and penalties were $24.4 million and $1.5 million, respectively, excluding any related income tax benefits. As of September 30, 2022, the accrued interest and penalties were $20.5 million and $1.7 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, 2023 | |
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: Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Denominator for basic earnings per share 138.6 140.8 147.3 Potential common shares 1.5 1.9 2.4 Denominator for diluted earnings per share 140.1 142.7 149.7 |
Other Financial Information
Other Financial Information | 12 Months Ended |
Sep. 30, 2023 | |
Other Financial Information | |
Other Financial Information | 16. Other Financial Information Accrued expenses and other current liabilities consist of the following: Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Accrued salaries and benefits $ 599.8 $ 602.2 Accrued contract costs 1,340.4 1,246.0 Other accrued expenses 347.3 333.2 $ 2,287.5 $ 2,181.4 Accrued contract costs above include balances related to professional liability accruals of $809.6 million and $789.3 million as of September 30, 2023 and 2022, 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, 2023 and 2022. The Company did not have material revisions to estimates for contracts where revenue is recognized using the input method during the twelve months ended September 30, 2023 and 2022. For the year ended September 30, 2023, the Company incurred restructuring expenses of $188.4 million, included personnel and other costs of $91.6 million and real estate costs of $96.8 million, of which $53.3 million was accrued and unpaid at September 30, 2023. During the year ended September 30, 2022, the Company incurred restructuring expenses of $107.5 million, of which $69.1 million was related to the exit of our Russia-related businesses. The remaining $38.4 million related to actions to improve margins and deliver efficiencies. These expenses included personnel and other costs of $27.5 million and real estate costs of $10.9 million, of which $7.9 million was accrued and unpaid at September 30, 2022. On September 13, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.18 per share, which was paid on October 20, 2023 to stockholders of record as of the close of business on October 5, 2023. As of September 30, 2023, accrued and unpaid dividends totaled $26.7 million and were classified within other accrued expenses on the consolidated balance sheet. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023, 2022 and 2021 related to reclassifications out of accumulated other comprehensive loss are summarized as follows (in millions): Foreign Accumulated Pension Currency Loss on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2020 $ (342.8) $ (567.3) $ (8.6) $ (918.7) Other comprehensive income (loss) before reclassification 14.6 (12.8) 0.8 2.6 Amounts reclassified from accumulated other comprehensive loss 12.0 — 3.7 15.7 Balances at September 30, 2021 $ (316.2) $ (580.1) $ (4.1) $ (900.4) Foreign Accumulated Pension Currency Loss on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2021 $ (316.2) $ (580.1) $ (4.1) $ (900.4) Other comprehensive income (loss) before reclassification 89.9 (238.7) 37.9 (110.9) Amounts reclassified from accumulated other comprehensive loss 9.0 19.5 3.1 31.6 Balances at September 30, 2022 $ (217.3) $ (799.3) $ 36.9 $ (979.7) Foreign Accumulated Pension Currency Loss on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2022 $ (217.3) $ (799.3) $ 36.9 $ (979.7) Other comprehensive (loss) income before reclassification (10.9) 59.6 10.7 59.4 Amounts reclassified from accumulated other comprehensive loss 2.2 — (8.5) (6.3) Balances at September 30, 2023 $ (226.0) $ (739.7) $ 39.1 $ (926.6) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
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 Company’s claims administrators as of the respective balance sheet dates. The Company includes any adjustments to such insurance reserves in its consolidated results of operations. The Company’s reasonably possible loss disclosures are presented on a gross basis prior to the consideration of insurance recoveries. The Company does not record gain contingencies until they are realized. In the ordinary course of business, the Company may not be aware that it or its affiliates are under investigation and may not be aware of whether or not a known investigation has been concluded. In the ordinary course of business, the Company may enter into various arrangements providing financial or performance assurance to clients, lenders, or partners. Such arrangements include standby letters of credit, surety bonds, and corporate guarantees to support the creditworthiness or the project execution commitments of its affiliates, partnerships and joint ventures. The Company’s unsecured credit arrangements are used for standby letters of credit issued in connection with general and professional liability insurance programs and for contract performance guarantees. At September 30, 2023 and 2022, these outstanding standby letters of credit totaled $878.9 million and $640.3 million, respectively. As of September 30, 2023, the Company had $416.7 million available under these unsecured credit facilities. Performance arrangements typically have various expiration dates ranging from the completion of the project contract and extending beyond contract completion in some circumstances such as for warranties. The Company may also guarantee that a project, when complete, will achieve specified performance standards. If the project subsequently fails to meet guaranteed performance standards, the Company may incur additional costs, pay liquidated damages or be held responsible for the costs incurred by the client to achieve the required performance standards. The potential payment amount of an outstanding performance arrangement is typically the remaining cost of work to be performed by or on behalf of third parties. Generally, under joint venture arrangements, if a partner is financially unable to complete its share of the contract, the other partner(s) may be required to complete those activities. At September 30, 2023, the Company was contingently liable in the amount of approximately $883.3 million in issued standby letters of credit and $4.6 billion in issued surety bonds primarily to support project execution. In the ordinary course of business, the Company enters into various agreements providing financial or performance assurances to clients on behalf of certain unconsolidated partnerships, joint ventures and other jointly executed contracts. These agreements are entered into primarily to support the project execution commitments of these entities. The Company’s investment adviser jointly manages and sponsors the AECOM-Canyon Equity Fund, L.P. (the “Fund”), in which the Company indirectly holds an equity interest and has an ongoing capital commitment to fund investments. At September 30, 2023, the Company has capital commitments of $8.3 million to the Fund over the next 5 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 A former affiliate of the Company, Amentum Environment & Energy, Inc., f/k/a AECOM Energy and Construction, Inc. (“Former Affiliate”), executed a cost-reimbursable task order with the Department of Energy (DOE) in 2007 to provide deactivation, demolition and removal services at a New York State project site that, during 2010, experienced contamination and performance issues. In February 2011, the Former Affiliate and the DOE executed a Task Order Modification that changed some cost-reimbursable contract provisions to at-risk. The Task Order Modification, including subsequent amendments, required the DOE to pay all project costs up to $106 million, required the Former Affiliate and the DOE to equally share in all project costs incurred from $106 million to $146 million, and required the Former Affiliate to pay all project costs exceeding $146 million. Due to unanticipated requirements and permitting delays by federal and state agencies, as well as delays and related ground stabilization activities caused by Hurricane Irene in 2011, the Former Affiliate was required to perform work outside the scope of the Task Order Modification. In December 2014, the Former Affiliate submitted an initial set of claims against the DOE pursuant to the Contracts Disputes Acts seeking recovery of $103 million, including additional fees on changed work scope (the “2014 Claims”). On December 6, 2019, the Former Affiliate submitted a second set of claims against the DOE seeking recovery of an additional $60.4 million, including additional project costs and delays outside the scope of the contract as a result of differing site and ground conditions (the “2019 Claims”). The Former Affiliate also submitted three alternative breach of contract claims to the 2014 and 2019 Claims that may entitle the Former Affiliate to recovery of $148.5 million to $329.4 million. On December 30, 2019, the DOE denied the Former Affiliate’s 2014 Claims. On September 25, 2020, the DOE denied the Former Affiliate’s 2019 Claims. The Company filed an appeal of these decisions on December 20, 2020 in the Court of Federal Claims. Deconstruction, decommissioning and site restoration activities are complete. On January 31, 2020, the Company completed the sale of its Management Services business, including the Former Affiliate who worked on the DOE project, to Maverick Purchaser Sub LLC (MS Purchaser), an affiliate of American Securities LLC and Lindsay Goldberg LLC. The Company and the MS Purchaser agreed that all future DOE project claim recoveries and costs will be split 10% to the MS 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 Claims and 2019 Claims submitted against the DOE, or any additional incurred claims or costs, which could have a material adverse effect on the Company’s results of operations. Refinery Turnaround Project A Former Affiliate of the Company entered into an agreement to perform turnaround maintenance services during a planned shutdown at a refinery in Montana in December 2017. The turnaround project was completed in February 2019. Due to circumstances outside of the Company’s Former Affiliate’s control, including client directed changes and delays and the refinery’s condition, the Company’s Former Affiliate performed additional work outside of the original contract over $90 million and is entitled to payment from the refinery owner of approximately $144 million. In March 2019, the refinery owner sent a letter to the Company’s Former Affiliate alleging it incurred approximately $79 million in damages due to the Company’s Former Affiliate’s project performance. In April 2019, the Company’s Former Affiliate filed and perfected a $132 million construction lien against the refinery for unpaid labor and materials costs. In August 2019, following a subcontractor complaint filed in the Thirteen Judicial District Court of Montana asserting claims against the refinery owner and the Company’s Former Affiliate, the refinery owner crossclaimed against the Company’s Former Affiliate and the subcontractor. In October 2019, following the subcontractor’s dismissal of its claims, the Company’s Former Affiliate removed the matter to federal court and cross claimed against the refinery owner. In December 2019, the refinery owner claimed $93.0 million in damages and offsets against the Company’s Former Affiliate. On January 31, 2020, the Company completed the sale of its Management Services business, including the Former Affiliate, to the MS Purchaser; however, the Refinery Turnaround Project, including related claims and liabilities, has been retained by the Company. 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, 2023 | |
Reportable Segments and Geographic Information | |
Reportable Segments and Geographic Information | 19. Reportable Segments and Geographic Information The Company’s reportable segments are presented according to their geographic regions and business activities. The Americas segment provides planning, consulting, architectural and engineering design services, and construction management services to public and private clients in the United States, Canada, and Latin America, while the International segment provides similar professional services to public and private clients in Europe, the Middle East, India, Africa, and the Asia-Australia-Pacific regions. The Company’s AECOM Capital (ACAP) segment primarily invests in and develops real estate projects. These reportable segments are organized by the differing specialized needs of the respective clients, and how the Company manages its business. The Company has aggregated various operating segments into its reportable segments based on their similar characteristics, including similar long term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers. AECOM Reportable Segments: Americas International Capital Corporate Total (in millions) Fiscal Year Ended September 30, 2023: Revenue $ 10,975.7 $ 3,402.1 $ 0.7 $ — $ 14,378.5 Gross profit 699.7 245.1 0.7 — 945.5 Equity in earnings of joint ventures 14.9 9.6 (303.9) — (279.4) General and administrative expenses — — (12.6) (141.0) (153.6) Restructuring costs — — — (188.4) (188.4) Operating income 714.6 254.7 (315.8) (329.4) 324.1 Segment assets 7,433.1 2,536.2 64.5 1,104.4 Gross profit as a % of revenue 6.4 % 7.2 % — — 6.6 % Fiscal Year Ended September 30, 2022: Revenue $ 9,939.3 $ 3,206.7 $ 2.2 $ — $ 13,148.2 Gross profit 639.9 205.9 2.2 — 848.0 Equity in earnings of joint ventures 13.9 15.3 24.4 — 53.6 General and administrative expenses — — (12.6) (134.7) (147.3) Restructuring costs — — — (107.5) (107.5) Operating income 653.8 221.2 14.0 (242.2) 646.8 Segment assets 7,232.2 2,467.9 264.9 1,095.3 Gross profit as a % of revenue 6.4 % 6.4 % — — 6.4 % Fiscal Year Ended September 30, 2021: Revenue $ 10,226.3 $ 3,112.6 $ 2.0 $ — $ 13,340.9 Gross profit 631.6 164.8 2.0 — 798.4 Equity in earnings of joint ventures 11.4 12.2 11.4 — 35.0 General and administrative expenses — — (11.1) (143.9) (155.0) Restructuring costs — — — (48.8) (48.8) Operating income 643.0 177.0 2.3 (192.7) 629.6 Segment assets 7,204.6 2,764.5 234.6 1,390.9 Gross profit as a % of revenue 6.2 % 5.3 % — — 6.0 % Geographic Information: Fiscal Year Ended September 30, September 30, September 30, Long-Lived Assets 2023 2022 2021 (in millions) Americas $ 3,478.5 $ 3,906.7 $ 3,922.8 Europe, Middle East, India, Africa 803.5 763.6 872.3 Asia-Australia-Pacific 342.3 362.1 405.0 Total $ 4,624.3 $ 5,032.4 $ 5,200.1 Long-lived assets consist of noncurrent assets excluding deferred tax assets. |
Major Clients
Major Clients | 12 Months Ended |
Sep. 30, 2023 | |
Major Clients | |
Major Clients | 20. Major Clients No single client accounted for 10% or more of the Company’s revenue in any of the past five |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2023 | |
Schedule II: Valuation and Qualifying Accounts | |
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts (amounts in millions) Balance at Additions Other and Balance at Beginning Charged to Cost Foreign the End of of Year of Revenue Deductions (a) Exchange Impact the Year Allowance for Doubtful Accounts Fiscal Year 2023 $ 104.0 $ 40.9 $ (50.8) $ 0.1 $ 94.2 Fiscal Year 2022 $ 92.8 $ 43.9 $ (29.6) $ (3.1) $ 104.0 Fiscal Year 2021 $ 77.9 $ 29.1 $ (14.9) $ 0.7 $ 92.8 (a) Primarily relates to accounts written-off and recoveries |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
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 Company’s overhead rates, operating systems and cost proposals to ensure that the Company accounted for such costs in accordance with the Cost Accounting Standards of the FAR (CAS). If the DCAA determines the Company has not accounted for such costs consistent with CAS, the DCAA may disallow these costs. There can be no assurance that audits by the DCAA or other governmental agencies will not result in material cost disallowances in the future. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts ● Client type—federal or state and local government or commercial client; ● Historical contract performance; ● Historical collection and delinquency trends; ● Client credit worthiness; and ● General economic conditions. |
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 stockholders’ 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 Company’s fair value measurement methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although the Company believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methodologies or assumptions to determine fair value could result in a different fair value measurement at the reporting date. |
Property and Equipment | Property and Equipment 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 Company’s impairment tests are performed at the operating segment level as they represent the Company’s reporting units. Goodwill is evaluated for impairment either by assessing qualitative factors or by performing a quantitative assessment. Qualitative factors, such as overall financial performance, industry or market considerations, or other relevant events, are assessed to determine if it is more likely than not that the fair value of the reporting units is less than their carrying amounts. During a quantitative 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 On December 22, 2017, the United States enacted the Tax Cuts and Jobs Act, which significantly changed U.S. tax law and included a provision to tax global intangible low-taxed income (GILTI) of foreign subsidiaries. The Company recognizes taxes due under the GILTI provision as a current period expense. |
Discontinued Operations, Good_2
Discontinued Operations, Goodwill, and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations, Goodwill, and Intangible Assets | |
Schedule of balance sheet and income statement information of discontinued operations and significant components included in consolidated statement of cash flows | The following table represents summarized balance sheet information of assets and liabilities held for sale (in millions): September 30, September 30, 2023 2022 Cash and cash equivalents $ 1.9 $ 4.6 Receivables and contract assets 93.3 66.2 Other — 8.2 Current assets held for sale $ 95.2 $ 79.0 Property and equipment, net $ 14.2 $ 8.0 Write-down of assets to fair value less cost to sell (14.2) (8.0) Non-current assets held for sale $ — $ — Accounts payable and accrued expenses $ 45.6 $ 49.2 Current liabilities held for sale $ 45.6 $ 49.2 Long-term liabilities held for sale $ 0.8 $ 0.2 The following table represents summarized income statement information of discontinued operations (in millions): Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 Revenue $ 212.8 $ 347.4 $ 771.5 Cost of revenue 223.2 360.2 760.5 Gross (loss) profit (10.4) (12.8) 11.0 Equity in earnings of joint ventures (2.9) (7.4) 4.0 Loss on disposal activities (50.6) (48.1) (52.5) Transaction costs (0.2) (9.7) (15.3) Impairment of long-lived assets — — (105.2) Loss from operations (64.1) (78.0) (158.0) Other loss (1.0) — — Interest expense — (0.1) (0.5) Loss before taxes (65.1) (78.1) (158.5) Income tax (benefit) expense (7.9) 1.8 (41.7) Net loss from discontinued operations $ (57.2) $ (79.9) $ (116.8) The significant components included in the Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions): Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 Payments for capital expenditures $ (6.2) $ (2.7) $ (7.3) |
Schedule of changes in the carrying value of goodwill by reportable segment | Foreign September 30, Exchange September 30, 2022 Impact 2023 (in millions) Americas $ 2,610.7 $ 3.3 $ 2,614.0 International 770.1 34.8 804.9 Total $ 3,380.8 $ 38.1 $ 3,418.9 |
Schedule of gross amounts and accumulated amortization of finite intangible assets included in intangible assets | September 30, 2023 September 30, 2022 Gross Accumulated Intangible Gross Accumulated Intangible Amortization Amount Amortization Assets, Net Amount Amortization Assets, Net Period (in millions) (years) Customer relationships $ 663.8 $ (646.0) $ 17.8 $ 663.0 $ (627.4) $ 35.6 1 - 11 |
Schedule of estimated future amortization expense of intangible assets | Fiscal Year (in millions) 2024 $ 17.1 2025 0.7 Total $ 17.8 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition. | |
Schedule of revenues disaggregated by revenue sources | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Cost reimbursable $ 6,128.8 $ 5,454.9 $ 5,319.4 Guaranteed maximum price 4,887.7 4,325.0 4,582.7 Fixed price 3,362.0 3,368.3 3,438.8 Total revenue $ 14,378.5 $ 13,148.2 $ 13,340.9 Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Americas $ 10,976.4 $ 9,941.6 $ 10,228.3 Europe, Middle East, India, Africa 1,937.3 1,759.8 1,691.3 Asia-Australia-Pacific 1,464.8 1,446.8 1,421.3 Total revenue $ 14,378.5 $ 13,148.2 $ 13,340.9 |
Schedule of net accounts receivable | Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Billed $ 2,122.2 $ 1,931.4 Contract retentions 516.5 490.4 Total accounts receivable—gross 2,638.7 2,421.8 Allowance for doubtful accounts and credit losses (94.2) (104.0) Total accounts receivable—net $ 2,544.5 $ 2,317.8 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property and Equipment | |
Schedule of property and equipment, at cost | Fiscal Year Ended September 30, September 30, Useful Lives 2023 2022 (years) (in millions) Building and land $ 10.4 $ 9.9 10 - 45 Leasehold improvements 329.4 339.7 1 - 20 Computer systems and equipment 716.7 672.1 3 - 12 Furniture and fixtures 97.9 103.1 3 - 10 Total 1,154.4 1,124.8 Accumulated depreciation and amortization (771.8) (696.6) Property and equipment, net $ 382.6 $ 428.2 |
Joint Ventures and Variable I_2
Joint Ventures and Variable Interest Entities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Joint Ventures and Variable Interest Entities | |
Schedule of financial information of the consolidated joint ventures | September 30, September 30, 2023 2022 (in millions) Current assets $ 806.3 $ 630.8 Non-current assets 75.9 73.8 Total assets $ 882.2 $ 704.6 Current liabilities $ 779.6 $ 530.6 Non-current liabilities 1.5 1.5 Total liabilities 781.1 532.1 Total AECOM (deficit) equity (54.9) 56.7 Noncontrolling interests 156.0 115.8 Total owners’ equity 101.1 172.5 Total liabilities and owners’ equity $ 882.2 $ 704.6 |
Schedule of financial information of the unconsolidated joint ventures, as derived from their unaudited financial statements | September 30, September 30, 2023 2022 (in millions) Current assets $ 1,177.4 $ 1,279.4 Non-current assets 996.3 1,128.7 Total assets $ 2,173.7 $ 2,408.1 Current liabilities $ 605.9 $ 751.4 Non-current liabilities 441.7 521.3 Total liabilities 1,047.6 1,272.7 Joint ventures’ equity 1,126.1 1,135.4 Total liabilities and joint ventures’ equity $ 2,173.7 $ 2,408.1 AECOM’s investment in joint ventures $ 139.2 $ 355.0 Twelve Months Ended September 30, September 30, 2023 2022 (in millions) Revenue $ 1,248.2 $ 1,801.5 Cost of revenue 1,170.7 1,743.1 Gross profit $ 77.5 $ 58.4 Net income $ 72.9 $ 52.1 |
Schedule of AECOM's equity in earnings of unconsolidated joint ventures | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Pass-through joint ventures $ 24.5 $ 29.2 $ 23.6 Other joint ventures (303.9) 24.4 11.4 Total $ (279.4) $ 53.6 $ 35.0 |
Pension Benefit Obligations (Ta
Pension Benefit Obligations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Pension Benefit Obligations | |
Schedule of reconciliations of the changes in the U.S. and international plans' benefit obligations | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Change in benefit obligation: Benefit obligation at beginning of year $ 198.1 $ 791.2 $ 265.4 $ 1,470.8 $ 283.9 $ 1,440.3 Service cost — 0.3 — 0.5 — 0.5 Participant contributions 0.1 0.2 0.1 0.3 0.1 0.3 Interest cost 9.8 47.7 4.7 24.1 4.3 21.6 Benefits and expenses paid (17.2) (42.2) (18.4) (44.3) (18.5) (48.6) Actuarial (gain) loss (8.8) (112.5) (51.9) (458.1) (3.7) (4.7) Plan settlements (1.5) (1.5) (1.8) (2.2) (0.7) (5.9) Transfers in 0.7 — — — — — Plan amendments — — — — — 0.4 Foreign currency translation (gain) loss — 73.0 — (199.9) — 66.9 Benefit obligation at end of year $ 181.2 $ 756.2 $ 198.1 $ 791.2 $ 265.4 $ 1,470.8 |
Schedule of reconciliations of the changes in the fair value of assets | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Change in plan assets Fair value of plan assets at beginning of year $ 101.4 $ 683.5 $ 138.9 $ 1,251.8 $ 129.6 $ 1,166.2 Actual return on plan assets 7.8 (54.2) (27.2) (374.5) 14.7 61.1 Employer contributions 8.2 24.8 9.8 23.6 13.7 25.2 Participant contributions 0.1 0.2 0.1 0.3 0.1 0.3 Benefits and expenses paid (17.2) (42.2) (18.4) (44.3) (18.5) (48.6) Plan settlements (1.5) (1.5) (1.8) (2.2) (0.7) (5.9) Foreign currency translation (loss) gain — 62.7 — (171.2) — 53.5 Fair value of plan assets at end of year $ 98.8 $ 673.3 $ 101.4 $ 683.5 $ 138.9 $ 1,251.8 |
Schedule of reconciliations of the funded status | Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Reconciliation of funded status: Funded status at end of year $ (82.4) $ (82.9) $ (96.7) $ (107.7) $ (126.5) $ (219.0) Contribution made after measurement date N/A N/A N/A N/A N/A N/A Net amount recognized at end of year $ (82.4) $ (82.9) $ (96.7) $ (107.7) $ (126.5) $ (219.0) |
Schedule of amounts recognized in the consolidated balance sheets | Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Amounts recognized in the consolidated balance sheets: Other non-current assets $ — $ 38.7 $ — $ 36.8 $ — $ 47.5 Accrued expenses and other current liabilities (8.4) — (8.6) — (9.1) — Pension benefit obligations (74.0) (121.6) (88.1) (144.5) (117.4) (266.5) Net amount recognized in the balance sheet $ (82.4) $ (82.9) $ (96.7) $ (107.7) $ (126.5) $ (219.0) |
Schedule of reconciliation of amounts in the consolidated statements of stockholder's equity | Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Reconciliation of amounts in consolidated statements of stockholders’ equity: Prior service cost $ (0.1) $ (1.2) $ (0.1) $ (1.2) $ (0.1) $ (1.6) Net loss (77.5) (207.1) (91.7) (187.1) (116.5) (279.5) Total recognized in accumulated other comprehensive loss $ (77.6) $ (208.3) $ (91.8) $ (188.3) $ (116.6) $ (281.1) |
Schedule of components of net periodic cost for the Company's pension and post-retirement plans | Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Components of net periodic benefit cost: Service costs $ — $ 0.3 $ — $ 0.5 $ — $ 0.5 Interest cost on projected benefit obligation 9.8 47.7 4.7 24.1 4.3 21.6 Expected return on plan assets (5.8) (60.8) (5.6) (41.4) (6.5) (43.5) Amortization of prior service costs — 0.1 — 0.1 — 0.1 Amortization of net loss (gain) 3.5 (0.6) 5.6 6.9 5.9 9.2 Settlement (gain) loss recognized (0.1) 0.2 0.2 0.3 0.2 0.8 Net periodic benefit cost (credit) $ 7.4 $ (13.1) $ 4.9 $ (9.5) $ 3.9 $ (11.3) |
Schedule of 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 | Amounts included in accumulated other comprehensive loss as of September 30, 2023 that are expected to be recognized as components of net periodic benefit cost during fiscal 2024 are (in millions): U.S. Int’l Amortization of prior service cost $ — $ (0.1) Amortization of net actuarial (losses) gain (3.1) 2.3 Total $ (3.1) $ 2.2 |
Schedule of additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Projected benefit obligation $ 168.8 $ 628.1 $ 184.8 $ 601.4 $ 247.8 $ 1,248.8 Accumulated benefit obligation $ 168.8 $ 628.1 $ 184.8 $ 600.1 $ 247.8 $ 1,243.9 Fair value of plan assets $ 98.8 $ 506.5 $ 101.4 $ 456.9 $ 138.9 $ 982.4 |
Schedule of expected future benefit payments | The table below provides the expected future benefit payments, in millions: Year Ending September 30, U.S. Int’l 2024 $ 20.2 $ 47.1 2025 19.3 45.0 2026 19.1 46.3 2027 18.1 47.8 2028 17.4 49.3 2029-2033 74.3 267.6 Total $ 168.4 $ 503.1 |
Schedule of underlying assumptions for the pension plans | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Weighted-average assumptions to determine benefit obligation: Discount rate 5.76 % 5.65 % 5.40 % 5.27 % 2.46 % 1.98 % Salary increase rate N/A 3.06 % N/A 3.48 % N/A 3.13 % Weighted-average assumptions to determine net periodic benefit cost: Discount rate 5.40 % 5.27 % 2.46 % 1.98 % 2.20 % 1.67 % Salary increase rate N/A 3.48 % N/A 3.13 % N/A 2.68 % Expected long-term rate of return on plan assets 7.00 % 6.04 % 6.25 % 3.93 % 6.80 % 3.95 % |
Schedule of the Company's target allocation and pension plan asset allocation, both U.S. and international | Percentage of Plan Assets as of September 30, Target Allocations 2023 2022 U.S. Int’l U.S. Int’l U.S. Int’l Asset Category: Equities 32 % 27 % 33 % 24 % 36 % 20 % Debt 58 61 56 62 48 47 Cash 2 — 2 4 5 15 Property and other 8 12 9 10 11 18 Total 100 % 100 % 100 % 100 % 100 % 100 % |
Schedule of fair values of the Company's post retirement benefit plan assets by major asset categories | Fair Value Measurement as of September 30, 2023 Total Quoted Significant Carrying Prices in Other Significant Value as of Active Observable Unobservable Investments September 30, Markets Inputs Inputs measured at 2023 (Level 1) (Level 2) (Level 3) NAV (in millions) Cash and cash equivalents $ 29.5 $ 20.2 $ 9.3 $ — $ — Debt securities 338.3 338.3 — — — Investment funds: Diversified and equity funds 43.5 30.3 13.2 — — Fixed income funds 26.1 21.7 4.4 — — Common collective funds 372.0 — — — 372.0 Derivative instruments (37.3) 1.5 (38.8) — — Total $ 772.1 $ 412.0 $ (11.9) $ — $ 372.0 Fair Value Measurement as of September 30, 2022 Total Quoted Significant Carrying Prices in Other Significant Value as of Active Observable Unobservable Investments September 30, Markets Inputs Inputs measured at 2022 (Level 1) (Level 2) (Level 3) NAV (in millions) Cash and cash equivalents $ 104.8 $ 99.0 $ 5.8 $ — $ — Debt securities 339.1 339.1 — — — Investment funds: Diversified and equity funds 22.2 7.3 14.9 — — Fixed income funds 7.9 5.7 2.2 — — Common collective funds 451.6 — — — 451.6 Derivative instruments (140.7) — (140.7) — — Total $ 784.9 $ 451.1 $ (117.8) $ — $ 451.6 |
Schedule of changes in the fair value of the Company's post-retirement plan Level 3 assets | Actual return Actual return on plan assets, on plan assets, Change September 30, relating to relating to Transfer due to 2021 assets still assets sold Purchases, into / exchange September 30, Beginning held at during the sales and (out of) rate 2022 balance reporting date period settlements Level 3 changes Ending balance (in millions) Level 3 Assets $ 4.0 $ — $ (0.2) $ (3.5) $ — $ (0.3) $ — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt | |
Schedule of debt | September 30, September 30, 2023 2022 (in millions) Credit Agreement $ 1,119.8 $ 1,143.3 2027 Senior Notes 997.3 997.3 Other debt 100.2 84.0 Total debt 2,217.3 2,224.6 Less: Current portion of debt and short-term borrowings (89.5) (48.6) Less: Unamortized debt issuance costs (14.4) (19.3) Long-term debt $ 2,113.4 $ 2,156.7 |
Schedule of maturities of debt | The following table presents, in millions, scheduled maturities of the Company’s debt as of September 30, 2023: Fiscal Year 2024 $ 89.5 2025 49.6 2026 412.6 2027 1,009.2 2028 656.4 Thereafter — Total $ 2,217.3 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Derivative Financial Instruments and Fair Value Measurements | |
Schedule of notional principle, fixed rates and related expiration dates of outstanding interest rate swap agreements | September 30, 2023 Notional Amount Notional Amount Fixed Effective Expiration Currency (in millions) Rate Date Date USD 400.0 1.283 % February 2023 March 2028 September 30, 2022 Notional Amount Notional Amount Fixed Effective Expiration Currency (in millions) Rate Date Date USD 200.0 2.60 % March 2018 February 2023 USD 400.0 1.349 % February 2023 March 2028 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases | |
Schedule of components of lease expenses | Fiscal Year Ended September 30, 2023 September 30, 2022 September 30, 2021 (in millions) Operating lease cost $ 164.0 $ 172.5 $ 186.5 Finance lease cost: Amortization of right-of-use assets 23.1 18.0 13.0 Interest on lease liabilities 2.6 2.2 2.0 Variable lease cost 34.1 34.0 35.5 Total lease cost $ 223.8 $ 226.7 $ 237.0 |
Schedule of additional balance sheet information related to leases | (in millions except as noted) Balance Sheet Classification September 30, 2023 September 30, 2022 Assets: Operating lease assets Operating lease right-of-use assets $ 447.0 $ 539.8 Finance lease assets Property and equipment – net 64.8 49.4 Total lease assets $ 511.8 $ 589.2 Liabilities: Current: Operating lease liabilities Accrued expenses and other current liabilities $ 139.8 $ 145.6 Finance lease liabilities Current portion of long-term debt 25.0 18.1 Total current lease liabilities 164.8 163.7 Non-current: Operating lease liabilities Operating lease liabilities, noncurrent 548.9 595.3 Finance lease liabilities Long-term debt 39.8 32.0 Total non-current lease liabilities $ 588.7 $ 627.3 As of September 30, 2023 September 30, 2022 September 30, 2021 Weighted average remaining lease term (in years): Operating leases 6.4 6.5 6.9 Finance leases 2.9 3.1 3.5 Weighted average discount rates: Operating leases 4.3 % 4.0 % 4.3 % Finance leases 4.1 % 3.8 % 4.3 % |
Schedule of additional cash flow information related to leases | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 188.3 $ 201.8 $ 221.4 Operating cash flows from finance leases 2.5 2.2 2.0 Financing cash flows from finance leases 23.7 19.8 13.7 Right-of-use assets obtained in exchange for new operating leases 96.6 90.9 102.7 Right-of-use assets obtained in exchange for new finance leases 37.5 26.2 28.5 |
Schedule of total remaining lease payments under the Company's operating and finance leases | Operating Leases Finance Leases Fiscal Year (in millions) 2024 $ 164.4 $ 27.2 2025 142.3 21.3 2026 112.8 14.3 2027 86.0 5.8 2028 75.7 0.5 Thereafter 213.1 — Total lease payments $ 794.3 $ 69.1 Less: Amounts representing interest $ (105.6) $ (4.3) Total lease liabilities $ 688.7 $ 64.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Taxes | |
Schedule of income tax (benefit) expense | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Current: Federal $ 67.7 $ 22.8 $ 32.2 State 71.9 16.0 6.8 Foreign 52.8 75.8 53.2 Total current income tax expense 192.4 114.6 92.2 Deferred: Federal (71.8) 22.1 (28.8) State (84.3) 11.8 18.8 Foreign 19.8 (12.4) 6.8 Total deferred income tax benefit (136.3) 21.5 (3.2) Total income tax expense $ 56.1 $ 136.1 $ 89.0 |
Schedule of major elements contributing to the difference between the U.S. federal statutory rate of 21% for fiscal years ended September 30, 2022, 2021 and 2020 and the effective tax rate | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 Amount % Amount % Amount % (in millions) Tax at federal statutory rate $ 44.8 21.0 % $ 115.6 21.0 % $ 85.8 21.0 % State income tax, net of federal benefit (7.1) (3.3) 20.2 3.7 8.0 2.0 Foreign residual income 59.4 27.8 46.4 8.4 45.6 11.1 Valuation allowance 16.6 7.8 (18.0) (3.3) 12.4 3.0 Nondeductible costs 10.7 5.0 19.7 3.6 6.0 1.5 Change in uncertain tax positions 9.4 4.4 15.4 2.8 8.5 2.1 Audit settlement 1.9 0.9 (1.5) (0.3) 10.4 2.5 Foreign tax rate differential 0.2 0.1 1.1 0.2 8.8 2.1 Income tax credits and incentives (68.2) (31.9) (51.0) (9.3) (51.3) (12.5) Exclusion of tax on non-controlling interests (9.4) (4.4) (5.1) (0.9) (6.1) (1.5) Tax exempt income (3.3) (1.5) (5.9) (1.1) (5.4) (1.3) Tax rate changes (3.2) (1.5) (4.1) (0.7) (26.8) (6.5) Return to provision (0.5) (0.2) (1.5) (0.3) (9.5) (2.3) Other items, net 4.8 2.1 4.8 0.9 2.6 0.6 Total income tax expense $ 56.1 26.3 % $ 136.1 24.7 % $ 89.0 21.8 % |
Schedule of deferred tax assets (liabilities) | Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Deferred tax assets: Compensation and benefit accruals not currently deductible $ 92.2 $ 91.6 Net operating loss carryforwards 102.3 113.7 Self-insurance reserves 23.2 4.5 Research and experimentation and other tax credits 43.1 111.4 Pension liability 44.7 52.1 Accrued liabilities 295.1 280.4 Capital loss carryforward 64.0 64.4 Partnership investment 102.0 — Other 7.1 5.3 Total deferred tax assets 773.7 723.4 Deferred tax liabilities: Unearned revenue (7.0) (1.5) Depreciation and amortization (13.1) (111.4) Acquired intangible assets (5.4) (11.2) Investment in subsidiaries (10.7) (10.8) Right of use assets (94.0) (125.6) Contingent consideration (34.2) (33.6) Other (15.5) — Total deferred tax liabilities (179.9) (294.1) Valuation allowance (171.2) (154.4) Net deferred tax assets $ 422.6 $ 274.9 |
Schedule of reconciliation of the beginning and ending amount of gross unrecognized tax benefits | Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Balance at the beginning of the year $ 55.2 $ 46.4 Gross increase in current period’s tax positions 3.5 17.4 Gross increase in prior years’ tax positions 17.9 2.4 Gross decrease in prior years’ tax positions (13.3) (8.0) Decrease due to settlement with tax authorities (1.0) (1.4) Decrease due to lapse of statute of limitations — (0.5) Gross change due to foreign exchange fluctuations (0.2) (1.1) Balance at the end of the year $ 62.1 $ 55.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share | |
Schedule of reconciliation of the denominators for basic and diluted EPS | Fiscal Year Ended September 30, September 30, September 30, 2023 2022 2021 (in millions) Denominator for basic earnings per share 138.6 140.8 147.3 Potential common shares 1.5 1.9 2.4 Denominator for diluted earnings per share 140.1 142.7 149.7 |
Other Financial Information (Ta
Other Financial Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Other Financial Information | |
Schedule of accrued expenses and other current liabilities | Fiscal Year Ended September 30, September 30, 2023 2022 (in millions) Accrued salaries and benefits $ 599.8 $ 602.2 Accrued contract costs 1,340.4 1,246.0 Other accrued expenses 347.3 333.2 $ 2,287.5 $ 2,181.4 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Reclassifications out of Accumulated Other Comprehensive Loss | |
Schedule of accumulated balances and reporting period activities related to reclassifications out of accumulated other comprehensive loss | The accumulated balances and reporting period activities for the years ended September 30, 2023, 2022 and 2021 related to reclassifications out of accumulated other comprehensive loss are summarized as follows (in millions): Foreign Accumulated Pension Currency Loss on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2020 $ (342.8) $ (567.3) $ (8.6) $ (918.7) Other comprehensive income (loss) before reclassification 14.6 (12.8) 0.8 2.6 Amounts reclassified from accumulated other comprehensive loss 12.0 — 3.7 15.7 Balances at September 30, 2021 $ (316.2) $ (580.1) $ (4.1) $ (900.4) Foreign Accumulated Pension Currency Loss on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2021 $ (316.2) $ (580.1) $ (4.1) $ (900.4) Other comprehensive income (loss) before reclassification 89.9 (238.7) 37.9 (110.9) Amounts reclassified from accumulated other comprehensive loss 9.0 19.5 3.1 31.6 Balances at September 30, 2022 $ (217.3) $ (799.3) $ 36.9 $ (979.7) Foreign Accumulated Pension Currency Loss on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2022 $ (217.3) $ (799.3) $ 36.9 $ (979.7) Other comprehensive (loss) income before reclassification (10.9) 59.6 10.7 59.4 Amounts reclassified from accumulated other comprehensive loss 2.2 — (8.5) (6.3) Balances at September 30, 2023 $ (226.0) $ (739.7) $ 39.1 $ (926.6) |
Reportable Segments and Geogr_2
Reportable Segments and Geographic Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Reportable Segments and Geographic Information | |
Summary of financial information concerning the Company's reportable segments | AECOM Reportable Segments: Americas International Capital Corporate Total (in millions) Fiscal Year Ended September 30, 2023: Revenue $ 10,975.7 $ 3,402.1 $ 0.7 $ — $ 14,378.5 Gross profit 699.7 245.1 0.7 — 945.5 Equity in earnings of joint ventures 14.9 9.6 (303.9) — (279.4) General and administrative expenses — — (12.6) (141.0) (153.6) Restructuring costs — — — (188.4) (188.4) Operating income 714.6 254.7 (315.8) (329.4) 324.1 Segment assets 7,433.1 2,536.2 64.5 1,104.4 Gross profit as a % of revenue 6.4 % 7.2 % — — 6.6 % Fiscal Year Ended September 30, 2022: Revenue $ 9,939.3 $ 3,206.7 $ 2.2 $ — $ 13,148.2 Gross profit 639.9 205.9 2.2 — 848.0 Equity in earnings of joint ventures 13.9 15.3 24.4 — 53.6 General and administrative expenses — — (12.6) (134.7) (147.3) Restructuring costs — — — (107.5) (107.5) Operating income 653.8 221.2 14.0 (242.2) 646.8 Segment assets 7,232.2 2,467.9 264.9 1,095.3 Gross profit as a % of revenue 6.4 % 6.4 % — — 6.4 % Fiscal Year Ended September 30, 2021: Revenue $ 10,226.3 $ 3,112.6 $ 2.0 $ — $ 13,340.9 Gross profit 631.6 164.8 2.0 — 798.4 Equity in earnings of joint ventures 11.4 12.2 11.4 — 35.0 General and administrative expenses — — (11.1) (143.9) (155.0) Restructuring costs — — — (48.8) (48.8) Operating income 643.0 177.0 2.3 (192.7) 629.6 Segment assets 7,204.6 2,764.5 234.6 1,390.9 Gross profit as a % of revenue 6.2 % 5.3 % — — 6.0 % |
Schedule of Geographic Information | Fiscal Year Ended September 30, September 30, September 30, Long-Lived Assets 2023 2022 2021 (in millions) Americas $ 3,478.5 $ 3,906.7 $ 3,922.8 Europe, Middle East, India, Africa 803.5 763.6 872.3 Asia-Australia-Pacific 342.3 362.1 405.0 Total $ 4,624.3 $ 5,032.4 $ 5,200.1 |
Significant Accounting Polici_3
Significant Accounting Policies - Fiscal Year (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Significant Accounting Policies | |||
Length of fiscal year | 364 days | 364 days | 364 days |
Minimum | |||
Significant Accounting Policies | |||
Length of fiscal year | 364 days | ||
Maximum | |||
Significant Accounting Policies | |||
Length of fiscal year | 371 days |
Significant Accounting Polici_4
Significant Accounting Policies - Property and Equipment (Details) | Sep. 30, 2023 |
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, 2023 | |
Significant Accounting Policies | |
Market-related valuation calculation period (in years) | 5 years |
Net unrecognized gain (loss) threshold subject to amortization (in percent) | 10% |
Discontinued Operations, Good_3
Discontinued Operations, Goodwill, and Intangible Assets - Sale of businesses (Details) - Held for sale - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 28, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2021 | |
Civil infrastructure construction business | ||||
Discontinued Operations, Goodwill and Intangible Assets | ||||
Loss on disposal of business | $ 38.9 | $ 40 | ||
Oil and gas construction business | ||||
Discontinued Operations, Goodwill and Intangible Assets | ||||
Loss from sale of business | $ 3 | |||
Consideration | $ 14 | |||
Amount of cash payment for contingent consideration collected | $ 9.2 |
Discontinued Operations, Good_4
Discontinued Operations, Goodwill, and Intangible Assets - Balance sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Summary of financial information of the Disposal Group is as follows: | ||
Long-term liabilities held for sale | $ 792 | $ 200 |
Held for sale | ||
Summary of financial information of the Disposal Group is as follows: | ||
Cash and cash equivalents | 1,900 | 4,600 |
Receivables and contract assets | 93,300 | 66,200 |
Other | 8,200 | |
Current assets held for sale | 95,200 | 79,000 |
Property and equipment, net | 14,200 | 8,000 |
Write-down of assets to fair value less cost to sell | (14,200) | (8,000) |
Accounts payable and accrued expenses | 45,600 | 49,200 |
Current liabilities held for sale | 45,600 | 49,200 |
Long-term liabilities held for sale | $ 800 | $ 200 |
Discontinued Operations, Good_5
Discontinued Operations, Goodwill, and Intangible Assets - Income statement information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Discontinued Operations, Goodwill and Intangible Assets | |||
Impairment of long-lived assets | $ (86,199) | $ (105,194) | |
Net loss from discontinuing operations | (57,207) | $ (79,929) | (116,813) |
Held for sale | |||
Discontinued Operations, Goodwill and Intangible Assets | |||
Revenue | 212,800 | 347,400 | 771,500 |
Cost of revenue | 223,200 | 360,200 | 760,500 |
Gross (loss) profit | (10,400) | (12,800) | 11,000 |
Equity in earnings of joint ventures | (2,900) | (7,400) | 4,000 |
Loss on disposal activities | (50,600) | (48,100) | (52,500) |
Transaction costs | (200) | (9,700) | (15,300) |
Impairment of long-lived assets | 105,200 | ||
Loss from operations | (64,100) | (78,000) | (158,000) |
Other loss | (1,000) | ||
Interest expense | (100) | (500) | |
Loss before taxes | (65,100) | (78,100) | (158,500) |
Income tax (benefit) expense | (7,900) | 1,800 | (41,700) |
Net loss from discontinuing operations | $ (57,200) | $ (79,900) | $ (116,800) |
Discontinued Operations, Good_6
Discontinued Operations, Goodwill, and Intangible Assets - Statement of cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Held for sale | |||
Discontinued Operations, Goodwill and Intangible Assets | |||
Payments for capital expenditures | $ (6.2) | $ (2.7) | $ (7.3) |
Discontinued Operations, Good_7
Discontinued Operations, Goodwill, and Intangible Assets - Goodwill by segments (Details) $ in Thousands | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | $ 3,380,761 |
Foreign exchange impact | 38,100 |
Goodwill at the end of the period | 3,418,930 |
Americas | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | 2,610,700 |
Foreign exchange impact | 3,300 |
Goodwill at the end of the period | 2,614,000 |
International | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | 770,100 |
Foreign exchange impact | 34,800 |
Goodwill at the end of the period | $ 804,900 |
Discontinued Operations, Good_8
Discontinued Operations, Goodwill, and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Discontinued Operations, Goodwill and Intangible Assets | ||
Intangible Assets, Net | $ 17,769 | $ 35,552 |
Customer relationships | ||
Discontinued Operations, Goodwill and Intangible Assets | ||
Gross Amount | 663,800 | 663,000 |
Accumulated Amortization | (646,000) | (627,400) |
Intangible Assets, Net | $ 17,800 | $ 35,600 |
Customer relationships | Minimum | ||
Discontinued Operations, Goodwill and Intangible Assets | ||
Amortization Period | 1 year | |
Customer relationships | Maximum | ||
Discontinued Operations, Goodwill and Intangible Assets | ||
Amortization Period | 11 years |
Discontinued Operations, Good_9
Discontinued Operations, Goodwill, and Intangible Assets - Amortization expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Discontinued Operations, Goodwill, and Intangible Assets | ||
Amortization expense | $ 18,600 | $ 18,900 |
Discontinued Operations, Goodwill and Intangible Assets | ||
2024 | 17,100 | |
2025 | 700 | |
Intangible Assets, Net | $ 17,769 | $ 35,552 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Recognition. | |||
Passed through costs included in revenue and cost of sales | $ 7.7 | $ 6.8 | $ 7.2 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Recognition | |||
Total revenue | $ 14,378.5 | $ 13,148.2 | $ 13,340.9 |
Americas | |||
Revenue Recognition | |||
Total revenue | 10,976.4 | 9,941.6 | 10,228.3 |
Europe, Middle East, India, Africa | |||
Revenue Recognition | |||
Total revenue | 1,937.3 | 1,759.8 | 1,691.3 |
Asia-Australia-Pacific | |||
Revenue Recognition | |||
Total revenue | 1,464.8 | 1,446.8 | 1,421.3 |
Cost reimbursable | |||
Revenue Recognition | |||
Total revenue | 6,128.8 | 5,454.9 | 5,319.4 |
Guaranteed maximum price | |||
Revenue Recognition | |||
Total revenue | 4,887.7 | 4,325 | 4,582.7 |
Fixed-price | |||
Revenue Recognition | |||
Total revenue | $ 3,362 | $ 3,368.3 | $ 3,438.8 |
Revenue Recognition - Performan
Revenue Recognition - Performance obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue Recognition | ||
Performance obligation | $ 21,900 | |
Recognized revenue | $ 1,043.7 | $ 565.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
Revenue Recognition | ||
Performance obligation, percent to be satisfied | 55% | |
Performance obligation expected timing of satisfaction period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-01 | ||
Revenue Recognition | ||
Performance obligation, percent to be satisfied | 45% | |
Performance obligation expected timing of satisfaction period |
Revenue Recognition - Accounts
Revenue Recognition - Accounts receivable, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Billed | $ 2,122,200 | $ 1,931,400 |
Contract retentions | 516,500 | 490,400 |
Total accounts receivable-gross | 2,638,700 | 2,421,800 |
Allowance for doubtful accounts and credit losses | (94,200) | (104,000) |
Total accounts receivable-net | $ 2,544,453 | $ 2,317,812 |
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 | $ 160,000 | $ 110,000 |
Trade receivables sold with no financial and legal obligations | $ 291,000 | $ 240,300 |
Outstanding receivables | ||
Additional disclosures | ||
Number of customers accounting for 10% | No | No |
Concentration Risk Threshold Percentage | 10% | 10% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property and equipment | |||
Property and equipment, gross | $ 1,154,400 | $ 1,124,800 | |
Accumulated depreciation and amortization | (771,800) | (696,600) | |
Property and equipment, net | 382,638 | 428,239 | |
Depreciation expense | 152,300 | 147,000 | $ 143,600 |
Building and land | |||
Property and equipment | |||
Property and equipment, gross | 10,400 | 9,900 | |
Leasehold improvements | |||
Property and equipment | |||
Property and equipment, gross | 329,400 | 339,700 | |
Computer systems and equipment | |||
Property and equipment | |||
Property and equipment, gross | 716,700 | 672,100 | |
Furniture and fixtures | |||
Property and equipment | |||
Property and equipment, gross | $ 97,900 | $ 103,100 |
Property and Equipment - Useful
Property and Equipment - Useful Lives (Details) | Sep. 30, 2023 |
Building and land | Minimum | |
Property and equipment | |
Useful Lives | 10 years |
Building and land | Maximum | |
Property and equipment | |
Useful Lives | 45 years |
Leasehold Improvements [Member] | Minimum | |
Property and equipment | |
Useful Lives | 1 year |
Leasehold Improvements [Member] | Maximum | |
Property and equipment | |
Useful Lives | 20 years |
Computer Equipment | Minimum | |
Property and equipment | |
Useful Lives | 3 years |
Computer 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 | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Joint Ventures and Variable Interest Entities | ||||
Current assets | $ 6,169,511 | $ 5,822,810 | ||
Total assets | 11,233,398 | 11,139,315 | ||
Current liabilities | 5,850,283 | 5,404,171 | ||
Total liabilities | 8,849,687 | 8,533,936 | ||
Total AECOM (deficit) equity | 2,212,332 | 2,476,654 | ||
Noncontrolling interests | 171,379 | 128,725 | ||
Total owners' equity | 2,383,711 | 2,605,379 | $ 2,829,577 | $ 3,413,544 |
Total liabilities and joint ventures' equity | 11,233,398 | 11,139,315 | ||
Revenue | 14,378,461 | 13,148,182 | 13,340,852 | |
Consolidated joint ventures | ||||
Joint Ventures and Variable Interest Entities | ||||
Current assets | 806,300 | 630,800 | ||
Non-current assets | 75,900 | 73,800 | ||
Total assets | 882,200 | 704,600 | ||
Current liabilities | 779,600 | 530,600 | ||
Non-current liabilities | 1,500 | 1,500 | ||
Total liabilities | 781,100 | 532,100 | ||
Total AECOM (deficit) equity | (54,900) | 56,700 | ||
Noncontrolling interests | 156,000 | 115,800 | ||
Total owners' equity | 101,100 | 172,500 | ||
Total liabilities and joint ventures' equity | 882,200 | 704,600 | ||
Revenue | $ 1,984,300 | $ 1,411,700 | $ 826,800 |
Joint Ventures and Variable I_4
Joint Ventures and Variable Interest Entities - Unconsolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financial Information | ||||
Current assets | $ 6,169,511 | $ 5,822,810 | ||
Total assets | 11,233,398 | 11,139,315 | ||
Current liabilities | 5,850,283 | 5,404,171 | ||
Total liabilities | 8,849,687 | 8,533,936 | ||
Joint ventures' equity | 2,383,711 | 2,605,379 | $ 2,829,577 | $ 3,413,544 |
Total liabilities and joint ventures' equity | 11,233,398 | 11,139,315 | ||
AECOM's investment in joint ventures | 139,236 | 354,983 | ||
Joint ventures summarized financial information | ||||
Revenue | 14,378,461 | 13,148,182 | 13,340,852 | |
Cost of revenue | 13,432,996 | 12,300,208 | 12,542,431 | |
Gross profit | 945,465 | 847,974 | 798,421 | |
Net income | 100,141 | 334,702 | $ 202,980 | |
Unconsolidated joint ventures | ||||
Financial Information | ||||
Current assets | 1,177,400 | 1,279,400 | ||
Non-current assets | 996,300 | 1,128,700 | ||
Total assets | 2,173,700 | 2,408,100 | ||
Current liabilities | 605,900 | 751,400 | ||
Non-current liabilities | 441,700 | 521,300 | ||
Total liabilities | 1,047,600 | 1,272,700 | ||
Joint ventures' equity | 1,126,100 | 1,135,400 | ||
Total liabilities and joint ventures' equity | 2,173,700 | 2,408,100 | ||
AECOM's investment in joint ventures | 139,200 | 355,000 | ||
Joint ventures summarized financial information | ||||
Revenue | 1,248,200 | 1,801,500 | ||
Cost of revenue | 1,170,700 | 1,743,100 | ||
Gross profit | 77,500 | 58,400 | ||
Net income | $ 72,900 | $ 52,100 |
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 | ||
Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financial Information | ||||
Equity in (losses) earnings of joint ventures | $ (279,352) | $ 53,640 | $ 35,044 | |
Impairment loss | $ 307,000 | |||
Unconsolidated joint ventures | ||||
Financial Information | ||||
Equity in (losses) earnings of joint ventures | (279,400) | 53,600 | 35,000 | |
Unconsolidated joint ventures | Pass-through joint ventures | ||||
Financial Information | ||||
Equity in (losses) earnings of joint ventures | 24,500 | 29,200 | 23,600 | |
Unconsolidated joint ventures | Other joint ventures | ||||
Financial Information | ||||
Equity in (losses) earnings of joint ventures | $ (303,900) | $ 24,400 | $ 11,400 |
Pension Benefit Obligations - B
Pension Benefit Obligations - Benefit Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
United States | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 198.1 | $ 265.4 | $ 283.9 |
Participant contributions | 0.1 | 0.1 | 0.1 |
Interest cost | 9.8 | 4.7 | 4.3 |
Benefits and expenses paid | (17.2) | (18.4) | (18.5) |
Actuarial (gain) loss | (8.8) | (51.9) | (3.7) |
Plan settlements | (1.5) | (1.8) | (0.7) |
Transfers in | 0.7 | ||
Benefit obligation at end of year | 181.2 | 198.1 | 265.4 |
International | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 791.2 | 1,470.8 | 1,440.3 |
Service cost | 0.3 | 0.5 | 0.5 |
Participant contributions | 0.2 | 0.3 | 0.3 |
Interest cost | 47.7 | 24.1 | 21.6 |
Benefits and expenses paid | (42.2) | (44.3) | (48.6) |
Actuarial (gain) loss | (112.5) | (458.1) | (4.7) |
Plan settlements | (1.5) | (2.2) | (5.9) |
Plan amendments | 0.4 | ||
Foreign currency translation (gain) loss | 73 | (199.9) | 66.9 |
Benefit obligation at end of year | $ 756.2 | $ 791.2 | $ 1,470.8 |
Pension Benefit Obligations - A
Pension Benefit Obligations - Asset Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 784.9 | ||
Employer contributions | 3 | $ 2.9 | |
Fair value of plan assets at end of year | 772.1 | 784.9 | |
United States | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 101.4 | 138.9 | $ 129.6 |
Actual return on plan assets | 7.8 | (27.2) | 14.7 |
Employer contributions | 8.2 | 9.8 | 13.7 |
Participant contributions | 0.1 | 0.1 | 0.1 |
Benefits and expenses paid | (17.2) | (18.4) | (18.5) |
Plan settlements | (1.5) | (1.8) | (0.7) |
Fair value of plan assets at end of year | 98.8 | 101.4 | 138.9 |
International | |||
Change in plan assets | |||
Fair value of plan assets at beginning of year | 683.5 | 1,251.8 | 1,166.2 |
Actual return on plan assets | (54.2) | (374.5) | 61.1 |
Employer contributions | 24.8 | 23.6 | 25.2 |
Participant contributions | 0.2 | 0.3 | 0.3 |
Benefits and expenses paid | (42.2) | (44.3) | (48.6) |
Plan settlements | (1.5) | (2.2) | (5.9) |
Foreign currency translation (loss) gain | 62.7 | (171.2) | 53.5 |
Fair value of plan assets at end of year | $ 673.3 | $ 683.5 | $ 1,251.8 |
Pension Benefit Obligations - F
Pension Benefit Obligations - Funded Status (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
United States | |||
Reconciliation of funded status: | |||
Funded status at end of year | $ (82.4) | $ (96.7) | $ (126.5) |
Net amount recognized at end of year | (82.4) | (96.7) | (126.5) |
International | |||
Reconciliation of funded status: | |||
Funded status at end of year | (82.9) | (107.7) | (219) |
Net amount recognized at end of year | $ (82.9) | $ (107.7) | $ (219) |
Pension Benefit Obligations -_2
Pension Benefit Obligations - Balance Sheet Recognition (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Amounts recognized in the consolidated balance sheets: | |||
Pension benefit obligations | $ (195,586) | $ (232,552) | |
United States | |||
Amounts recognized in the consolidated balance sheets: | |||
Accrued expenses and other current liabilities | (8,400) | (8,600) | $ (9,100) |
Pension benefit obligations | (74,000) | (88,100) | (117,400) |
Net amount recognized in the balance sheet | (82,400) | (96,700) | (126,500) |
International | |||
Amounts recognized in the consolidated balance sheets: | |||
Other non-current assets | 38,700 | 36,800 | 47,500 |
Pension benefit obligations | (121,600) | (144,500) | (266,500) |
Net amount recognized in the balance sheet | $ (82,900) | $ (107,700) | $ (219,000) |
Pension Benefit Obligations - E
Pension Benefit Obligations - Equity Recognition (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
United States | |||
Reconciliation of amounts in consolidated statements of stockholders' equity: | |||
Prior service cost | $ (0.1) | $ (0.1) | $ (0.1) |
Net loss | (77.5) | (91.7) | (116.5) |
Total recognized in accumulated other comprehensive loss | (77.6) | (91.8) | (116.6) |
International | |||
Reconciliation of amounts in consolidated statements of stockholders' equity: | |||
Prior service cost | (1.2) | (1.2) | (1.6) |
Net loss | (207.1) | (187.1) | (279.5) |
Total recognized in accumulated other comprehensive loss | $ (208.3) | $ (188.3) | $ (281.1) |
Pension Benefit Obligations - P
Pension Benefit Obligations - Periodic Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
United States | |||
Defined Benefit Plan | |||
Interest cost on projected benefit obligation | $ 9.8 | $ 4.7 | $ 4.3 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Expected return on plan assets | $ (5.8) | $ (5.6) | $ (6.5) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Amortization of net loss (gain) | $ 3.5 | $ 5.6 | $ 5.9 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Settlement (gain) loss recognized | $ (0.1) | $ 0.2 | $ 0.2 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Net periodic benefit cost (credit) | $ 7.4 | $ 4.9 | $ 3.9 |
International | |||
Defined Benefit Plan | |||
Service costs | 0.3 | 0.5 | 0.5 |
Interest cost on projected benefit obligation | $ 47.7 | $ 24.1 | $ 21.6 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Expected return on plan assets | $ (60.8) | $ (41.4) | $ (43.5) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Amortization of prior service costs (credits) | $ 0.1 | $ 0.1 | $ 0.1 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Amortization of net loss (gain) | $ (0.6) | $ 6.9 | $ 9.2 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Settlement (gain) loss recognized | $ 0.2 | $ 0.3 | $ 0.8 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income | Other Nonoperating Income | Other Nonoperating Income |
Net periodic benefit cost (credit) | $ (13.1) | $ (9.5) | $ (11.3) |
Pension Plan, Defined Benefit | |||
Defined Benefit Plan | |||
Applicable deferred income taxes, included in OCI arising from net prior service cost and net gain/loss | $ 3.1 | $ 18.8 | $ 9.3 |
Pension Benefit Obligations -_3
Pension Benefit Obligations - AOCI (Details) $ in Millions | Sep. 30, 2023 USD ($) |
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) gain | $ (3.1) |
Total | (3.1) |
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 cost | (0.1) |
Amortization of net actuarial (losses) gain | 2.3 |
Total | $ 2.2 |
Pension Benefit Obligations -_4
Pension Benefit Obligations - Excess of Plan Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
United States | |||
Additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets | |||
Projected benefit obligation | $ 168.8 | $ 184.8 | $ 247.8 |
Accumulated benefit obligation | 168.8 | 184.8 | 247.8 |
Fair value of plan assets | 98.8 | 101.4 | 138.9 |
Expected employer contributions in next fiscal year | 12.9 | ||
International | |||
Additional year-end information for pension plans with accumulated benefit obligations in excess of plan assets | |||
Projected benefit obligation | 628.1 | 601.4 | 1,248.8 |
Accumulated benefit obligation | 628.1 | 600.1 | 1,243.9 |
Fair value of plan assets | 506.5 | $ 456.9 | $ 982.4 |
Expected employer contributions in next fiscal year | $ 22.2 |
Pension Benefit Obligations -_5
Pension Benefit Obligations - Future payments (Details) $ in Millions | Sep. 30, 2023 USD ($) |
United States | |
Expected future benefit payments | |
2024 | $ 20.2 |
2025 | 19.3 |
2026 | 19.1 |
2027 | 18.1 |
2028 | 17.4 |
2029-2033 | 74.3 |
Total | 168.4 |
International | |
Expected future benefit payments | |
2024 | 47.1 |
2025 | 45 |
2026 | 46.3 |
2027 | 47.8 |
2028 | 49.3 |
2029-2033 | 267.6 |
Total | $ 503.1 |
Pension Benefit Obligations - U
Pension Benefit Obligations - Underlying assumptions (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
United States | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate (as a percent) | 5.76% | 5.40% | 2.46% |
Weighted-average assumptions to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 5.40% | 2.46% | 2.20% |
Expected long-term rate of return on plan assets (as a percent) | 7% | 6.25% | 6.80% |
International | |||
Weighted-average assumptions to determine benefit obligation: | |||
Discount rate (as a percent) | 5.65% | 5.27% | 1.98% |
Salary increase rate (as a percent) | 3.06% | 3.48% | 3.13% |
Weighted-average assumptions to determine net periodic benefit cost: | |||
Discount rate (as a percent) | 5.27% | 1.98% | 1.67% |
Salary increase rate (as a percent) | 3.48% | 3.13% | 2.68% |
Expected long-term rate of return on plan assets (as a percent) | 6.04% | 3.93% | 3.95% |
Pension Benefit Obligations - T
Pension Benefit Obligations - Target Allocation and Plan Assets Allocations (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
United States | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 100% | |
Percentage of Plan Assets (as a percent) | 100% | 100% |
United States | Equities | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 32% | |
Percentage of Plan Assets (as a percent) | 33% | 36% |
United States | Debt | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 58% | |
Percentage of Plan Assets (as a percent) | 56% | 48% |
United States | Cash | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 2% | |
Percentage of Plan Assets (as a percent) | 2% | 5% |
United States | Property And Other | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 8% | |
Percentage of Plan Assets (as a percent) | 9% | 11% |
International | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 100% | |
Percentage of Plan Assets (as a percent) | 100% | 100% |
International | Equities | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 27% | |
Percentage of Plan Assets (as a percent) | 24% | 20% |
International | Debt | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 61% | |
Percentage of Plan Assets (as a percent) | 62% | 47% |
International | Cash | ||
Percentage of Plan Assets: | ||
Percentage of Plan Assets (as a percent) | 4% | 15% |
International | Property And Other | ||
Percentage of Plan Assets: | ||
Target allocations (as a percent) | 12% | |
Percentage of Plan Assets (as a percent) | 10% | 18% |
Pension Benefit Obligations -_6
Pension Benefit Obligations - Asset Categories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Post-retirement plan | |||
Fair values of plan assets | $ 772.1 | $ 784.9 | |
Cash and Cash Equivalents | |||
Post-retirement plan | |||
Fair values of plan assets | 29.5 | 104.8 | |
Debt securities | |||
Post-retirement plan | |||
Fair values of plan assets | 338.3 | 339.1 | |
Diversified and equity funds | |||
Post-retirement plan | |||
Fair values of plan assets | 43.5 | 22.2 | |
Fixed income funds | |||
Post-retirement plan | |||
Fair values of plan assets | 26.1 | 7.9 | |
Common collective funds | |||
Post-retirement plan | |||
Fair values of plan assets | 372 | 451.6 | |
Derivative instruments | |||
Post-retirement plan | |||
Fair values of plan assets | (37.3) | (140.7) | |
Quoted Prices in Active Markets (Level 1) | |||
Post-retirement plan | |||
Fair values of plan assets | 412 | 451.1 | |
Quoted Prices in Active Markets (Level 1) | Cash and Cash Equivalents | |||
Post-retirement plan | |||
Fair values of plan assets | 20.2 | 99 | |
Quoted Prices in Active Markets (Level 1) | Debt securities | |||
Post-retirement plan | |||
Fair values of plan assets | 338.3 | 339.1 | |
Quoted Prices in Active Markets (Level 1) | Diversified and equity funds | |||
Post-retirement plan | |||
Fair values of plan assets | 30.3 | 7.3 | |
Quoted Prices in Active Markets (Level 1) | Fixed income funds | |||
Post-retirement plan | |||
Fair values of plan assets | 21.7 | 5.7 | |
Quoted Prices in Active Markets (Level 1) | Derivative instruments | |||
Post-retirement plan | |||
Fair values of plan assets | 1.5 | ||
Significant Other Observable Inputs (Level 2) | |||
Post-retirement plan | |||
Fair values of plan assets | (11.9) | (117.8) | |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | |||
Post-retirement plan | |||
Fair values of plan assets | 9.3 | 5.8 | |
Significant Other Observable Inputs (Level 2) | Diversified and equity funds | |||
Post-retirement plan | |||
Fair values of plan assets | 13.2 | 14.9 | |
Significant Other Observable Inputs (Level 2) | Fixed income funds | |||
Post-retirement plan | |||
Fair values of plan assets | 4.4 | 2.2 | |
Significant Other Observable Inputs (Level 2) | Derivative instruments | |||
Post-retirement plan | |||
Fair values of plan assets | (38.8) | (140.7) | |
Significant Unobservable Inputs (Level 3) | |||
Post-retirement plan | |||
Fair values of plan assets | $ 4 | ||
Investments measured at NAV | |||
Post-retirement plan | |||
Fair values of plan assets | 372 | 451.6 | |
Investments measured at NAV | Common collective funds | |||
Post-retirement plan | |||
Fair values of plan assets | $ 372 | $ 451.6 |
Pension Benefit Obligations - L
Pension Benefit Obligations - Level 3 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Change in plan assets | ||
Fair value of plan assets at beginning of year | $ 784.9 | |
Fair value of plan assets at end of year | $ 772.1 | $ 784.9 |
Level 3 Assets | ||
Change in plan assets | ||
Fair value of plan assets at beginning of year | 4 | |
Actual return on plan assets, relating to assets sold during the period | (0.2) | |
Purchases, sales and settlements | (3.5) | |
Change due to exchange rate changes | $ (0.3) | |
Fair value of plan assets at end of year |
Pension Benefit Obligations - M
Pension Benefit Obligations - Multiemployer (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Benefit Obligations | ||
Aggregate contributions to these multiemployer plans | $ 3 | $ 2.9 |
Debt - Long-term debt (Details)
Debt - Long-term debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Debt | ||
Total debt | $ 2,217,300 | $ 2,224,600 |
Less: Current portion of debt and short-term borrowings | (89,500) | (48,600) |
Less: Unamortized debt issuance costs | (14,400) | (19,300) |
Long-term debt | 2,113,369 | 2,156,686 |
Credit Agreement | ||
Debt | ||
Total debt | 1,119,800 | 1,143,300 |
2027 Senior Notes | ||
Debt | ||
Total debt | 997,300 | 997,300 |
Other Debt | ||
Debt | ||
Total debt | $ 100,200 | $ 84,000 |
Debt - Scheduled Maturities (De
Debt - Scheduled Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Debt | ||
2024 | $ 89.5 | |
2025 | 49.6 | |
2026 | 412.6 | |
2027 | 1,009.2 | |
2028 | 656.4 | |
Total | $ 2,217.3 | $ 2,224.6 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) | 12 Months Ended | ||||||
May 23, 2023 | Feb. 08, 2021 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 25, 2021 USD ($) | Apr. 13, 2021 USD ($) | |
Debt agreements | |||||||
Proceeds from borrowings under credit agreements | $ 3,506,668,000 | $ 3,618,585,000 | $ 3,638,916,000 | ||||
2014 Credit Agreement | Base Rate | |||||||
Debt agreements | |||||||
Interest rate, basis spread (as a percent) | 0.75% | ||||||
2014 Credit Agreement | SOFR | |||||||
Debt agreements | |||||||
Interest rate, basis spread (as a percent) | 1.75% | ||||||
2014 Credit Agreement | Term loan A | |||||||
Debt agreements | |||||||
Maximum borrowing capacity | $ 215,000,000 | ||||||
Credit Agreement | |||||||
Debt agreements | |||||||
Consolidated leverage ratio | 2 | ||||||
Credit Agreement | Base Rate | |||||||
Debt agreements | |||||||
Interest rate, basis spread (as a percent) | 0.225% | ||||||
Credit Agreement | LIBOR | |||||||
Debt agreements | |||||||
Interest rate, basis spread (as a percent) | 1.225% | ||||||
Credit Agreement | Minimum | |||||||
Debt agreements | |||||||
Consolidated interest coverage ratio | 3 | ||||||
Credit Agreement | Maximum | |||||||
Debt agreements | |||||||
Consolidated leverage ratio | 4 | ||||||
Credit Agreement | Term loan A | |||||||
Debt agreements | |||||||
Maximum borrowing capacity | $ 246,968,737.50 | ||||||
Credit Agreement | Term B facility | |||||||
Debt agreements | |||||||
Maximum borrowing capacity | $ 700,000,000 | ||||||
Credit Agreement | Revolving credit facility | |||||||
Debt agreements | |||||||
Maximum borrowing capacity | $ 1,150,000,000 | ||||||
Current borrowing capacity | $ 1,145,600,000 | 1,145,600,000 | |||||
Outstanding letters of credit | $ 4,400,000 | $ 4,400,000 | |||||
2024 Senior Notes | |||||||
Debt agreements | |||||||
Cash tender offer to purchase | $ 700,000,000 | ||||||
Interest rate (as a percent) | 5.875% | 5.875% |
Debt - 2027 Senior Notes (Detai
Debt - 2027 Senior Notes (Details) - 2027 Senior Notes - USD ($) | Feb. 21, 2017 | Sep. 30, 2023 |
Debt | ||
Face amount | $ 1,000,000,000 | |
Interest rate (as a percent) | 5.125% | |
Fair value of debt instrument | $ 939,900,000 | |
At any time and from time to time prior to December 15, 2026 | ||
Debt | ||
Redemption price (in percent) | 100% | |
At any time on or after December 15, 2026 | ||
Debt | ||
Redemption price (in percent) | 100% |
Debt - Other Debt and Other Ite
Debt - Other Debt and Other Items (Details) - Other Debt - Standby Letters of Credit - Unsecured - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Debt | ||
Outstanding letters of credit | $ 878.9 | $ 640.3 |
Current borrowing capacity | $ 416.7 |
Debt - Effective Interest Rate
Debt - Effective Interest Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt | |||
Effective interest rate including effects of interest rate swap agreements | 5.30% | 3.80% | 4.40% |
Amortization of deferred debt issuance costs | $ 4.9 | $ 4.9 | $ 10.2 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Fair Value Measurements - Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 |
Interest Rate Cap | ||||
Derivative financial instruments | ||||
Notional Amount | $ 300 | |||
Fixed Rate (as a percent) | 3.465% | |||
Interest Rate Cap | Maximum | ||||
Derivative financial instruments | ||||
Fixed Rate (as a percent) | 3.465% | |||
Interest Rate Swap | ||||
Derivative financial instruments | ||||
Notional Amount | $ 400 | |||
Fixed Rate (as a percent) | 1.283% | |||
Designated as Hedging Instrument | Interest Rate Swap | USD | March 2018 | ||||
Derivative financial instruments | ||||
Notional Amount | $ 200 | |||
Fixed Rate (as a percent) | 2.60% | |||
Designated as Hedging Instrument | Interest Rate Swap | USD | February 2023 | ||||
Derivative financial instruments | ||||
Notional Amount | $ 400 | $ 400 | ||
Fixed Rate (as a percent) | 1.283% | 1.349% |
Derivative Financial Instrume_4
Derivative Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Rate Swap and Interest Rate Cap | Other current assets | ||
Derivative financial instruments | ||
Fair values of the interest rate swap and cap agreements | $ 17.2 | |
Interest Rate Swap and Interest Rate Cap | Other non-current assets | ||
Derivative financial instruments | ||
Fair values of the interest rate swap and cap agreements | 37.5 | |
Interest Rate Swap | Other current assets | ||
Derivative financial instruments | ||
Fair values of the interest rate swap and cap agreements | $ 9.4 | |
Interest Rate Swap | Other non-current assets | ||
Derivative financial instruments | ||
Fair values of the interest rate swap and cap agreements | $ 41.8 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivative financial instruments | ||
Losses recognized in income | $ 0 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases | ||||
Retained earnings | $ (1,103,976) | $ (1,103,976) | $ (701,654) | |
Operating lease cost | ||||
Operating lease cost | 164,000 | 172,500 | $ 186,500 | |
Finance lease cost | ||||
Impairment of leasehold and right of use assets | $ 86,200 | |||
Amortization of right-of-use assets | 23,100 | 18,000 | 13,000 | |
Interest on lease liabilities | 2,600 | 2,200 | 2,000 | |
Variable lease cost | 34,100 | 34,000 | 35,500 | |
Total lease cost | $ 223,800 | $ 226,700 | $ 237,000 |
Leases - Additional balance she
Leases - Additional balance sheet information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Assets: | |||
Operating lease assets | $ 447,044 | $ 539,773 | |
Balance Sheet classification of operating lease assets | Operating lease assets | Operating lease assets | |
Finance lease assets | $ 64,800 | $ 49,400 | |
Balance Sheet classification of finance lease assets | PROPERTY AND EQUIPMENT-NET | PROPERTY AND EQUIPMENT-NET | |
Total lease assets | $ 511,800 | $ 589,200 | |
Current: | |||
Operating lease liabilities | $ 139,800 | $ 145,600 | |
Balance Sheet classification of operating lease liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Finance lease liabilities | $ 25,000 | $ 18,100 | |
Balance Sheet classification of finance lease liabilities | Current portion of long-term debt | Current portion of long-term debt | |
Total current lease liabilities | $ 164,800 | $ 163,700 | |
Non-current: | |||
Operating lease liabilities | $ 548,851 | $ 595,308 | |
Balance Sheet classification of operating lease liabilities | Operating lease liabilities | Operating lease liabilities | |
Finance lease liabilities | $ 39,800 | $ 32,000 | |
Balance Sheet classification of finance lease liabilities | LONG-TERM DEBT | LONG-TERM DEBT | |
Total non-current lease liabilities | $ 588,700 | $ 627,300 | |
Weighted average remaining lease term (in years): | |||
Operating leases | 6 years 4 months 24 days | 6 years 6 months | 6 years 10 months 24 days |
Finance leases | 2 years 10 months 24 days | 3 years 1 month 6 days | 3 years 6 months |
Weighted average discount rates: | |||
Operating leases | 4.30% | 4% | 4.30% |
Finance leases | 4.10% | 3.80% | 4.30% |
Leases - Additional cash flow i
Leases - Additional cash flow information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 188.3 | $ 201.8 | $ 221.4 |
Operating cash flows from finance leases | 2.5 | 2.2 | 2 |
Financing cash flows from finance leases | 23.7 | 19.8 | 13.7 |
Right-of-use assets obtained in exchange for new operating leases | 96.6 | 90.9 | 102.7 |
Right-of-use assets obtained in exchange for new finance leases | $ 37.5 | $ 26.2 | $ 28.5 |
Leases - Lease payments under o
Leases - Lease payments under operating lease (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Amounts payable under non-cancelable operating lease commitments | |
2024 | $ 164.4 |
2025 | 142.3 |
2026 | 112.8 |
2027 | 86 |
2028 | 75.7 |
Thereafter | 213.1 |
Total lease payments | 794.3 |
Less: Amounts representing interest | (105.6) |
Total lease liabilities | $ 688.7 |
Leases - Lease payments under f
Leases - Lease payments under finance lease (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Leases | |
2024 | $ 27.2 |
2025 | 21.3 |
2026 | 14.3 |
2027 | 5.8 |
2028 | 0.5 |
Total lease payments | 69.1 |
Less: Amounts representing interest | (4.3) |
Total lease liabilities | $ 64.8 |
Share-Based Payments - Defined
Share-Based Payments - Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payments | |||
Compensation expense under defined contribution plans | $ 23.1 | $ 22.7 | $ 26.1 |
Share-Based Payments - Stock In
Share-Based Payments - Stock Incentive Plans (Details) - 2020 Stock Incentive Plan shares in Millions | 12 Months Ended |
Sep. 30, 2023 shares | |
Share-based Payments | |
Securities available for future issuance (in shares) | 10.2 |
Employee Stock Option | |
Share-based Payments | |
Expiration term of unexercised options | 7 years |
Share-Based Payments - Restrict
Share-Based Payments - Restricted stock unit, PEP unit, and Stock Option activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock options, Weighted average exercise price | |||
Recognized compensation expense | $ 45.9 | $ 38.5 | $ 44.7 |
Unrecognized compensation expense | 48.3 | 45.9 | |
Other disclosures | |||
Compensation expense related to share-based payments | 45.9 | 38.5 | $ 44.7 |
Unrecognized compensation expense | $ 48.3 | $ 45.9 | |
Recognition period of unrecognized compensation expense | 3 years | 3 years | |
Restricted Stock Units | |||
Units | |||
Outstanding at beginning (in units) | 1 | 1.3 | 2.1 |
Granted (in units) | 0.3 | 0.3 | 0.4 |
Vested (in shares) | (0.4) | (0.5) | (0.9) |
Cancelled (in shares) | (0.1) | (0.1) | (0.3) |
Outstanding at ending (in units) | 0.8 | 1 | 1.3 |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning (in USD per unit) | $ 53.05 | $ 38.88 | $ 35.56 |
Granted (in USD per unit) | 83.64 | 74.30 | 49.21 |
Vested (in USD per unit) | 44.35 | 29.44 | 36.24 |
Cancelled (in USD per unit) | 62.09 | 49.74 | 36.89 |
Outstanding at ending (in USD per unit) | $ 68.34 | $ 53.05 | $ 38.88 |
PEP Units | |||
Units | |||
Outstanding at beginning (in units) | 0.7 | 1.2 | 1.6 |
Granted (in units) | 0.2 | 0.2 | 0.3 |
PEP units earned (unearned) (in shares) | 0.2 | 0.6 | 0.1 |
Vested (in shares) | (0.4) | (1.3) | (0.6) |
Cancelled (in shares) | (0.2) | ||
Outstanding at ending (in units) | 0.7 | 0.7 | 1.2 |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning (in USD per unit) | $ 60.60 | $ 37.22 | $ 33.86 |
Granted (in USD per unit) | 94.64 | 85.46 | 52.76 |
PEP units earned (unearned) (in USD per share) | 43.19 | 27.90 | 37.37 |
Vested (in USD per unit) | 43.19 | 27.90 | 38.13 |
Cancelled (in USD per unit) | 71.71 | 56.64 | 37.53 |
Outstanding at ending (in USD per unit) | $ 75.54 | $ 60.60 | $ 37.22 |
Stock Options | |||
Shares of stock under options | |||
Balance at the beginning of the period (in shares) | 0.3 | 0.3 | 0.4 |
Options exercised (in shares) | (0.2) | (0.1) | |
Balance at the end of the period (in shares) | 0.1 | 0.3 | 0.3 |
Stock options, Weighted average exercise price | |||
Balance at the beginning of the period (in dollars per share) | $ 38.72 | $ 38.72 | $ 36.41 |
Options exercised (in dollars per share) | 38.72 | 31.62 | |
Balance at the end of the period (in dollars per share) | $ 38.72 | $ 38.72 | $ 38.72 |
Share-Based Payments - Options
Share-Based Payments - Options (Details) - Employee Stock Option - $ / shares shares in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2021 | |
Number of Options | ||
Balance at the beginning of the period (in shares) | 0.3 | 0.4 |
Exercised (in shares) | (0.2) | (0.1) |
Balance at the end of the period (in shares) | 0.1 | 0.3 |
Stock options, Weighted average exercise price | ||
Balance at the beginning of the period (in dollars per share) | $ 38.72 | $ 36.41 |
Exercised (in dollars per share) | 38.72 | 31.62 |
Balance at the end of the period (in dollars per share) | $ 38.72 | $ 38.72 |
Share-Based Payments - PEP, RSU
Share-Based Payments - PEP, RSU (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Information concerning outstanding and exercisable options | |||
Compensation expense related to share-based payments | $ 45.9 | $ 38.5 | $ 44.7 |
Unrecognized compensation expense | $ 48.3 | $ 45.9 | |
Recognition period of unrecognized compensation expense | 3 years | 3 years | |
PEP Units | |||
Information concerning outstanding and exercisable options | |||
Weighted average grant-date fair value of awards granted (in dollars per share) | $ 94.64 | $ 85.46 | $ 52.76 |
Restricted Stock Units (RSUs) [Member] | |||
Information concerning outstanding and exercisable options | |||
Weighted average grant-date fair value of awards granted (in dollars per share) | $ 83.64 | $ 74.30 | $ 49.21 |
Performance Earnings Program | PEP Units | |||
Information concerning outstanding and exercisable options | |||
Vesting period | 3 years |
Income Taxes - Tax (Benefit) Ex
Income Taxes - Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes | |||
Income from domestic operations before income tax expense | $ 129,200 | $ 235,200 | $ 98,600 |
Income from foreign operations before income tax expense | 342,600 | 315,400 | 310,200 |
Current: | |||
Federal | 67,700 | 22,800 | 32,200 |
State | 71,900 | 16,000 | 6,800 |
Foreign | 52,800 | 75,800 | 53,200 |
Total current income tax expense | 192,400 | 114,600 | 92,200 |
Deferred: | |||
Federal | (71,800) | 22,100 | (28,800) |
State | (84,300) | 11,800 | 18,800 |
Foreign | 19,800 | (12,400) | 6,800 |
Total deferred income tax benefit | (136,300) | 21,500 | (3,200) |
Total income tax expense | $ 56,052 | $ 136,051 | $ 89,011 |
Income Taxes - Federal Rate Rec
Income Taxes - Federal Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2023 | |
Income Taxes | ||||
Valuation allowances | $ 16,800 | |||
Rate reconciliation | ||||
Tax at federal statutory rate | 44,800 | $ 115,600 | $ 85,800 | |
State income tax, net of federal benefit | (7,100) | 20,200 | 8,000 | |
Foreign residual income | 59,400 | 46,400 | 45,600 | |
Valuation allowance | 16,600 | (18,000) | 12,400 | |
Nondeductible costs | 10,700 | 19,700 | 6,000 | |
Change in uncertain tax positions | 9,400 | 15,400 | 8,500 | |
Audit settlement | 1,900 | (1,500) | 10,400 | |
Foreign tax rate differential | 200 | 1,100 | 8,800 | |
Income tax credits and incentives | (68,200) | (51,000) | (51,300) | |
Exclusion of tax on non-controlling interests | (9,400) | (5,100) | (6,100) | |
Tax exempt income | (3,300) | (5,900) | (5,400) | |
Tax rate changes | (3,200) | (4,100) | (26,800) | |
Return to provision | (500) | (1,500) | (9,500) | |
Other items, net | 4,800 | 4,800 | 2,600 | |
Total income tax expense | $ 56,052 | $ 136,051 | $ 89,011 | |
Major elements contributing to the difference between the U.S. federal statutory rate of 21% for fiscal year 2022, 2021 and 2020 and the effective tax rate | ||||
Tax at federal statutory rate (as a percent) | 21% | 21% | 21% | 21% |
State income tax, net of federal benefit (as a percent) | (3.30%) | 3.70% | 2% | |
Foreign residual income (as a percent) | 27.80% | 8.40% | 11.10% | |
Valuation allowance (as a percent) | 7.80% | (3.30%) | 3% | |
Nondeductible costs (as a percent) | 5% | 3.60% | 1.50% | |
Change in uncertain tax positions (as a percent) | 4.40% | 2.80% | 2.10% | |
Audit settlement (as a percent) | 0.90% | (0.30%) | 2.50% | |
Foreign tax rate differential (as a percent) | 0.10% | 0.20% | 2.10% | |
Income tax credits and incentive (as a percent) | (31.90%) | (9.30%) | (12.50%) | |
Exclusion of tax on non-controlling interests (as a percent) | (4.40%) | (0.90%) | (1.50%) | |
Tax exempt income (as a percent) | (1.50%) | (1.10%) | (1.30%) | |
Tax rate changes (as a percent) | (1.50%) | (0.70%) | (6.50%) | |
Return to provision (as a Percent) | (0.20%) | (0.30%) | (2.30%) | |
Other items, net (as a percent) | 2.10% | 0.90% | 0.60% | |
Total income tax expense (as a percent) | 26.30% | 24.70% | 21.80% |
Income Taxes - Additional infor
Income Taxes - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | |||
Apr. 01, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2023 | |
Income taxes | |||||
Effective tax rate (as a percent) | 26.30% | 24.70% | 21.80% | ||
Valuation allowance related to net deferred tax assets | $ 171.2 | $ 154.4 | $ 171.2 | ||
Corporate tax rate | 21% | 21% | 21% | 21% | |
Tax expense related to audit settlement | $ 13.2 | ||||
Tax rate changes | $ (3.2) | $ (4.1) | (26.8) | ||
Tax benefit from foreign subsidiaries | $ (52.8) | (75.8) | $ (53.2) | ||
United Kingdom | |||||
Income taxes | |||||
Corporate tax rate | 25% | 19% | |||
Tax rate changes | $ 25.9 | ||||
Foreign [Member] | |||||
Income taxes | |||||
Valuation allowance related to net operating losses | $ 21.9 |
Income Taxes - Deferred tax (De
Income Taxes - Deferred tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred tax assets: | |||
Compensation and benefit accruals not currently deductible | $ 92.2 | $ 91.6 | |
Net operating loss carryforwards | 102.3 | 113.7 | |
Self-insurance reserves | 23.2 | 4.5 | |
Research and experimentation and other tax credits | 43.1 | 111.4 | |
Pension liability | 44.7 | 52.1 | |
Accrued liabilities | 295.1 | 280.4 | |
Capital loss carryforward | 64 | 64.4 | |
Partnership investment | 102 | ||
Other | 7.1 | 5.3 | |
Total deferred tax assets | 773.7 | 723.4 | |
Deferred tax liabilities: | |||
Unearned revenue | (7) | (1.5) | |
Depreciation and amortization | (13.1) | (111.4) | |
Acquired intangible assets | (5.4) | (11.2) | |
Investment in subsidiaries | (10.7) | (10.8) | |
Right of use assets | (94) | (125.6) | |
Contingent consideration | (34.2) | (33.6) | |
Other | (15.5) | ||
Total deferred tax liabilities | (179.9) | (294.1) | |
Valuation allowance | (171.2) | (154.4) | |
Net deferred tax assets | 422.6 | 274.9 | |
Income Taxes, additional disclosures | |||
Capital loss carryforwards | 199.4 | 205.2 | |
Remaining gross tax asset exclusive of tax liabilities realized | 602.5 | ||
Valuation allowance related to the AECOM Capital impairment charge | 21 | ||
Increase in valuation allowance | 16.8 | ||
Decrease in valuation allowance related to capital losses | 3.3 | ||
Increase in valuation allowance related to state net operating losses and credits | 0.9 | ||
Gross book-tax differences from non-U.S. subsidiaries | 1,300 | ||
Liability for unrecognized tax benefits, including potential interest and penalties, net of related tax benefit | 79.5 | 70.5 | |
Unrecognized tax benefits | 62.1 | 55.2 | $ 46.4 |
Unrecognized tax benefits that would be included in the effective tax rate if recognized | 60.7 | ||
Other Credits | |||
Income Taxes, additional disclosures | |||
Unused tax credits | 10.4 | ||
Federal | |||
Income Taxes, additional disclosures | |||
Net operating loss carryforwards | 757.5 | 848 | |
Liability for unrecognized tax benefits, including potential interest and penalties, net of related tax benefit | 62.1 | 55.2 | |
State | |||
Income Taxes, additional disclosures | |||
Net operating loss carryforwards | 757.5 | $ 848 | |
State | Research and development | |||
Income Taxes, additional disclosures | |||
Unused tax credits | 27.2 | ||
Foreign Tax Authority [Member] | |||
Income Taxes, additional disclosures | |||
Net operating loss carryforwards | 757.5 | ||
Foreign Tax Authority [Member] | Research and development | |||
Income Taxes, additional disclosures | |||
Unused tax credits | $ 9.6 |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ||
Balance at the beginning of the year | $ 55.2 | $ 46.4 |
Gross increase in current period's tax positions | 3.5 | 17.4 |
Gross increase in prior years' tax positions | 17.9 | 2.4 |
Gross decrease in prior years' tax positions | (13.3) | (8) |
Decrease due to settlement with tax authorities | (1) | (1.4) |
Decrease due to lapse of statute of limitations | (0.5) | |
Gross change due to foreign exchange fluctuations | (0.2) | (1.1) |
Balance at the end of the year | 62.1 | 55.2 |
Income Taxes, additional disclosures | ||
Accrued interest, excluding any related income tax benefits | 24.4 | 20.5 |
Accrued penalties, excluding any related income tax benefits | $ 1.5 | $ 1.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share | |||
Denominator for basic earnings per share | 138,614 | 140,768 | 147,279 |
Potential common shares | 1,500 | 1,900 | 2,400 |
Denominator for diluted earnings per share | 140,109 | 142,696 | 149,676 |
Other Financial Information (De
Other Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 13, 2023 | |
Accrued expenses and other current liabilities | ||||
Accrued salaries and benefits | $ 599,800 | $ 602,200 | ||
Accrued contract costs | 1,340,400 | 1,246,000 | ||
Other accrued expenses | 347,300 | 333,200 | ||
Total | 2,287,546 | 2,181,408 | ||
Restructuring costs | 188,404 | 107,501 | $ 48,840 | |
Accrued restructuring expenses | 53,300 | 7,900 | ||
Dividend paid per share in cash | $ 0.18 | |||
Accrued and unpaid dividend | 26,700 | |||
Foreign Currency Translation Adjustments | ||||
Accrued expenses and other current liabilities | ||||
Amounts reclassified from accumulated other comprehensive (loss) income | 19,500 | |||
Personnel and other costs | ||||
Accrued expenses and other current liabilities | ||||
Restructuring costs | 91,600 | 27,500 | ||
Real estate costs | ||||
Accrued expenses and other current liabilities | ||||
Restructuring costs | 96,800 | 10,900 | ||
Real estate costs | Russia | ||||
Accrued expenses and other current liabilities | ||||
Restructuring costs | 69,100 | |||
To improve margins and deliver efficiencies | ||||
Accrued expenses and other current liabilities | ||||
Restructuring cost related to margins and delivery efficiency | 38,400 | |||
Professional liability accrual | ||||
Accrued expenses and other current liabilities | ||||
Accrued contract costs | $ 809,600 | $ 789,300 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated balances | |||
Balance at the beginning of the period | $ (979,675) | ||
Balance at the end of the period | (926,577) | $ (979,675) | |
Pension Related Adjustments | |||
Accumulated balances | |||
Balance at the beginning of the period | (217,300) | (316,200) | $ (342,800) |
Other comprehensive income (loss) before reclassification | (10,900) | 89,900 | 14,600 |
Amounts reclassified from accumulated other comprehensive income (loss) | 2,200 | 9,000 | 12,000 |
Balance at the end of the period | (226,000) | (217,300) | (316,200) |
Foreign Currency Translation Adjustments | |||
Accumulated balances | |||
Balance at the beginning of the period | (799,300) | (580,100) | (567,300) |
Other comprehensive income (loss) before reclassification | 59,600 | (238,700) | (12,800) |
Amounts reclassified from accumulated other comprehensive income (loss) | 19,500 | ||
Balance at the end of the period | (739,700) | (799,300) | (580,100) |
Loss on Derivative Instruments | |||
Accumulated balances | |||
Balance at the beginning of the period | 36,900 | (4,100) | (8,600) |
Other comprehensive income (loss) before reclassification | 10,700 | 37,900 | 800 |
Amounts reclassified from accumulated other comprehensive income (loss) | (8,500) | 3,100 | 3,700 |
Balance at the end of the period | 39,100 | 36,900 | (4,100) |
Accumulated Other Comprehensive Loss | |||
Accumulated balances | |||
Balance at the beginning of the period | (979,700) | (900,400) | (918,700) |
Other comprehensive income (loss) before reclassification | 59,400 | (110,900) | 2,600 |
Amounts reclassified from accumulated other comprehensive income (loss) | (6,300) | 31,600 | 15,700 |
Balance at the end of the period | $ (926,600) | $ (979,700) | $ (900,400) |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Standby letters of credit | ||
Commitments and Contingencies | ||
Outstanding standby letters of credit | $ 878.9 | $ 640.3 |
Amount available | 416.7 | |
Contingency liability | 883.3 | |
Surety Bond | ||
Commitments and Contingencies | ||
Contingency liability | 4,600 | |
Fund investment capital | ||
Commitments and Contingencies | ||
Commitment | $ 8.3 | |
Commitment period | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - DOE Project (Details) - Task order to provide deactivation, demolition and removal services at New York State project site - USD ($) $ in Millions | Jan. 31, 2020 | Dec. 06, 2019 | Sep. 30, 2023 | Dec. 31, 2014 |
Commitments and Contingencies | ||||
Percentage of claim recoveries due to purchaser | 10% | |||
Percentage of claim recoveries due to seller | 90% | |||
Former Affiliate | ||||
Commitments and Contingencies | ||||
Minimum project cost to pay | $ 146 | |||
Department of Energy | ||||
Commitments and Contingencies | ||||
Maximum project cost to pay | 106 | |||
Additional fees on changed work scope | $ 60.4 | $ 103 | ||
Former Affiliate and DOE | ||||
Commitments and Contingencies | ||||
Maximum project cost to pay | 146 | |||
Minimum project cost to pay | $ 106 | |||
Former Affiliate | Department of Energy | Minimum | ||||
Commitments and Contingencies | ||||
Damages sought | 148.5 | |||
Former Affiliate | Department of Energy | Maximum | ||||
Commitments and Contingencies | ||||
Damages sought | $ 329.4 |
Commitments and Contingencies_3
Commitments and Contingencies - Refinery Turnaround Project (Details) - Refinery Turnaround Project - USD ($) $ in Millions | 1 Months Ended | |||
Dec. 31, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2023 | |
Commitments and Contingencies | ||||
Amount of work outside original contract | $ 90 | |||
Payment entitled to | $ 144 | |||
Construction lien against the refinery for unpaid labor and materials costs | $ 132 | |||
A Refinery in Montana | ||||
Commitments and Contingencies | ||||
Damages sought, counter party | $ 93 | $ 79 |
Reportable Segments and Geogr_3
Reportable Segments and Geographic Information - Summarized financial information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Summarized financial information concerning the Company's reportable segments | |||
Revenue | $ 14,378,461 | $ 13,148,182 | $ 13,340,852 |
Gross profit | 945,465 | 847,974 | 798,421 |
Equity in earnings of joint ventures | (279,352) | 53,640 | 35,044 |
General and administrative expenses | (153,575) | (147,309) | (155,072) |
Restructuring costs | (188,404) | (107,501) | (48,840) |
Operating income | 324,134 | 646,804 | 629,553 |
Segment assets | 11,233,398 | 11,139,315 | |
Total | |||
Summarized financial information concerning the Company's reportable segments | |||
Revenue | 14,378,500 | 13,148,200 | 13,340,900 |
Gross profit | 945,500 | 848,000 | 798,400 |
Equity in earnings of joint ventures | (279,400) | 53,600 | 35,000 |
General and administrative expenses | (153,600) | (147,300) | (155,000) |
Restructuring costs | (188,400) | (107,500) | (48,800) |
Operating income | $ 324,100 | $ 646,800 | $ 629,600 |
Gross profit as a % of revenue | 6.60% | 6.40% | 6% |
Operating Segments | Americas | |||
Summarized financial information concerning the Company's reportable segments | |||
Revenue | $ 10,975,700 | $ 9,939,300 | $ 10,226,300 |
Gross profit | 699,700 | 639,900 | 631,600 |
Equity in earnings of joint ventures | 14,900 | 13,900 | 11,400 |
Operating income | 714,600 | 653,800 | 643,000 |
Segment assets | $ 7,433,100 | $ 7,232,200 | $ 7,204,600 |
Gross profit as a % of revenue | 6.40% | 6.40% | 6.20% |
Operating Segments | International | |||
Summarized financial information concerning the Company's reportable segments | |||
Revenue | $ 3,402,100 | $ 3,206,700 | $ 3,112,600 |
Gross profit | 245,100 | 205,900 | 164,800 |
Equity in earnings of joint ventures | 9,600 | 15,300 | 12,200 |
Operating income | 254,700 | 221,200 | 177,000 |
Segment assets | $ 2,536,200 | $ 2,467,900 | $ 2,764,500 |
Gross profit as a % of revenue | 7.20% | 6.40% | 5.30% |
Operating Segments | AECOM Capital | |||
Summarized financial information concerning the Company's reportable segments | |||
Revenue | $ 700 | $ 2,200 | $ 2,000 |
Gross profit | 700 | 2,200 | 2,000 |
Equity in earnings of joint ventures | (303,900) | 24,400 | 11,400 |
General and administrative expenses | (12,600) | (12,600) | (11,100) |
Operating income | (315,800) | 14,000 | 2,300 |
Segment assets | 64,500 | 264,900 | 234,600 |
Corporate | |||
Summarized financial information concerning the Company's reportable segments | |||
General and administrative expenses | (141,000) | (134,700) | (143,900) |
Restructuring costs | (188,400) | (107,500) | (48,800) |
Operating income | (329,400) | (242,200) | (192,700) |
Segment assets | $ 1,104,400 | $ 1,095,300 | $ 1,390,900 |
Reportable Segments and Geogr_4
Reportable Segments and Geographic Information - Geographic Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 |
Geographic Information | |||
Long-Lived Assets | $ 4,624.3 | $ 5,032.4 | $ 5,200.1 |
Americas | |||
Geographic Information | |||
Long-Lived Assets | 3,478.5 | 3,906.7 | 3,922.8 |
Europe, Middle East India, Africa | |||
Geographic Information | |||
Long-Lived Assets | 803.5 | 763.6 | 872.3 |
Asia-Australia-Pacific | |||
Geographic Information | |||
Long-Lived Assets | $ 342.3 | $ 362.1 | $ 405 |
Major Clients (Details)
Major Clients (Details) - Sales Revenue - Customer concentration risk | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Percentage of total revenue | |||
Period for which criteria of threshold percentage for disclosure not met in past | 5 years | ||
Minimum | |||
Percentage of total revenue | |||
Percentage of revenue accounted for by no other single client (as a percent) | 10% | ||
Agencies of U.S. Federal Government | |||
Percentage of total revenue | |||
Concentration (as a percent) | 5% | 6% | 8% |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Changes in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 104 | $ 92.8 | $ 77.9 |
Additions Charged to Cost of Revenue | 40.9 | 43.9 | 29.1 |
Deductions | (50.8) | (29.6) | (14.9) |
Other and Foreign Exchange Impact | 0.1 | (3.1) | 0.7 |
Balance at the End of the Year | $ 94.2 | $ 104 | $ 92.8 |