Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.01 par value | |
Trading Symbol | ACM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 136,127,400 | |
Entity Central Index Key | 0000868857 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 910,934 | $ 1,030,447 |
Cash in consolidated joint ventures | 274,872 | 229,759 |
Total cash and cash equivalents | 1,185,806 | 1,260,206 |
Accounts receivable-net | 2,646,722 | 2,544,453 |
Contract assets | 1,805,622 | 1,525,051 |
Prepaid expenses and other current assets | 725,847 | 730,145 |
Current assets held for sale | 105,091 | 95,221 |
Income taxes receivable | 28,698 | 14,435 |
TOTAL CURRENT ASSETS | 6,497,786 | 6,169,511 |
PROPERTY AND EQUIPMENT-NET | 372,384 | 382,638 |
DEFERRED TAX ASSETS-NET | 444,957 | 439,604 |
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES | 137,422 | 139,236 |
GOODWILL | 3,446,984 | 3,418,930 |
INTANGIBLE ASSETS-NET | 16,111 | 17,769 |
OTHER NON-CURRENT ASSETS | 118,899 | 218,666 |
OPERATING LEASE RIGHT-OF-USE ASSETS | 422,850 | 447,044 |
TOTAL ASSETS | 11,457,393 | 11,233,398 |
CURRENT LIABILITIES: | ||
Short-term debt | 2,914 | 3,085 |
Accounts payable | 2,304,539 | 2,190,755 |
Accrued expenses and other current liabilities | 2,385,201 | 2,287,546 |
Income taxes payable | 36,723 | 48,161 |
Contract liabilities | 1,267,045 | 1,188,742 |
Current liabilities held for sale | 51,141 | 45,625 |
Current portion of long-term debt | 88,552 | 86,369 |
TOTAL CURRENT LIABILITIES | 6,136,115 | 5,850,283 |
OTHER LONG-TERM LIABILITIES | 119,797 | 123,846 |
OPERATING LEASE LIABILITIES, NON-CURRENT | 507,518 | 548,851 |
LONG-TERM LIABILITIES HELD FOR SALE | 796 | 792 |
DEFERRED TAX LIABILITY-NET | 16,990 | 16,960 |
PENSION BENEFIT OBLIGATIONS | 179,464 | 195,586 |
LONG-TERM DEBT | 2,102,358 | 2,113,369 |
TOTAL LIABILITIES | 9,063,038 | 8,849,687 |
COMMITMENTS AND CONTINGENCIES | ||
AECOM STOCKHOLDERS' EQUITY: | ||
Common stock-authorized, 300,000,000 shares of $0.01 par value as of March 31, 2024 and September 30, 2023; issued and outstanding 135,872,491 and 136,210,883 shares as of March 31, 2024 and September 30, 2023, respectively | 1,359 | 1,362 |
Additional paid-in capital | 4,267,719 | 4,241,523 |
Accumulated other comprehensive loss | (909,970) | (926,577) |
Accumulated deficits | (1,160,441) | (1,103,976) |
TOTAL AECOM STOCKHOLDERS' EQUITY | 2,198,667 | 2,212,332 |
Noncontrolling interests | 195,688 | 171,379 |
TOTAL STOCKHOLDERS' EQUITY | 2,394,355 | 2,383,711 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 11,457,393 | $ 11,233,398 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Sep. 30, 2023 |
Consolidated Balance Sheets | ||
Common stock, authorized shares (in shares) | 300,000,000 | 300,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued shares (in shares) | 135,872,491 | 136,210,883 |
Common stock, outstanding shares (in shares) | 135,872,491 | 136,210,883 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Operations | ||||
Revenue | $ 3,943,833 | $ 3,490,172 | $ 7,843,753 | $ 6,872,527 |
Cost of revenue | 3,682,659 | 3,262,078 | 7,338,609 | 6,429,445 |
Gross profit | 261,174 | 228,094 | 505,144 | 443,082 |
Equity in earnings (losses) of joint ventures | 19,459 | 7,456 | (9,482) | 17,285 |
General and administrative expenses | (44,686) | (34,147) | (80,410) | (69,759) |
Restructuring costs | (35,465) | (3,973) | (51,645) | (41,432) |
Income from operations | 200,482 | 197,430 | 363,607 | 349,176 |
Other income | 2,622 | 2,501 | 5,191 | 4,485 |
Interest income | 15,422 | 9,804 | 27,524 | 15,690 |
Interest expense | (47,723) | (42,372) | (88,980) | (79,072) |
Income from continuing operations before taxes | 170,803 | 167,363 | 307,342 | 290,279 |
Income tax expense for continuing operations | 45,385 | 41,105 | 72,043 | 66,870 |
Net income from continuing operations | 125,418 | 126,258 | 235,299 | 223,409 |
Net loss from discontinued operations | (109,388) | (41,775) | (110,675) | (42,163) |
Net income | 16,030 | 84,483 | 124,624 | 181,246 |
Net income attributable to noncontrolling interests from continuing operations | (14,113) | (8,089) | (27,230) | (17,733) |
Net loss (income) attributable to noncontrolling interests from discontinued operations | (910) | 221 | (1,949) | 1,047 |
Net income attributable to noncontrolling interests | (15,023) | (7,868) | (29,179) | (16,686) |
Net income attributable to AECOM from continuing operations | 111,305 | 118,169 | 208,069 | 205,676 |
Net loss attributable to AECOM from discontinued operations | (110,298) | (41,554) | (112,624) | (41,116) |
Net income attributable to AECOM | $ 1,007 | $ 76,615 | $ 95,445 | $ 164,560 |
Net income (loss) attributable to AECOM per share: | ||||
Basic continuing operations per share | $ 0.82 | $ 0.85 | $ 1.53 | $ 1.48 |
Basic discontinued operations per share | (0.81) | (0.30) | (0.83) | (0.29) |
Basic earnings per share | 0.01 | 0.55 | 0.70 | 1.19 |
Diluted continuing operations per share | 0.81 | 0.84 | 1.52 | 1.46 |
Diluted discontinued operations per share | (0.80) | (0.29) | (0.82) | (0.29) |
Diluted earnings per share | $ 0.01 | $ 0.55 | $ 0.70 | $ 1.17 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 136,006 | 138,927 | 135,952 | 138,807 |
Diluted (in shares) | 136,712 | 140,335 | 136,907 | 140,489 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 16,030 | $ 84,483 | $ 124,624 | $ 181,246 |
Other comprehensive income, net of tax: | ||||
Net unrealized gain (loss) on derivatives, net of tax | 4,811 | (7,564) | (9,401) | (9,381) |
Foreign currency translation adjustments | (27,129) | 8,627 | 33,035 | 86,751 |
Pension adjustments, net of tax | 2,008 | (3,672) | (6,990) | (18,519) |
Other comprehensive (loss) income, net of tax | (20,310) | (2,609) | 16,644 | 58,851 |
Comprehensive (loss) income, net of tax | (4,280) | 81,874 | 141,268 | 240,097 |
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax | (14,895) | (7,985) | (29,216) | (16,949) |
Comprehensive (loss) income attributable to AECOM, net of tax | $ (19,175) | $ 73,889 | $ 112,052 | $ 223,148 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Parent | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficits | Non-Controlling Interest | Total |
BALANCE at Sep. 30, 2022 | $ 2,476,654 | $ 1,389 | $ 4,156,594 | $ (979,675) | $ (701,654) | $ 128,725 | $ 2,605,379 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 164,560 | 164,560 | 16,686 | 181,246 | |||
Dividends declared | (50,792) | (50,792) | (50,792) | ||||
Other comprehensive (loss) income | 58,588 | 58,588 | 263 | 58,851 | |||
Issuance of stock | 17,625 | 11 | 17,614 | 17,625 | |||
Repurchases of stock | (96,890) | (13) | (21,872) | (75,005) | (96,890) | ||
Stock-based compensation | 24,595 | 24,595 | 24,595 | ||||
Contributions from noncontrolling interests | 676 | 676 | |||||
Distributions to noncontrolling interests | (3,815) | (3,815) | |||||
BALANCE at Mar. 31, 2023 | 2,594,340 | 1,387 | 4,176,931 | (921,087) | (662,891) | 142,535 | 2,736,875 |
BALANCE at Dec. 31, 2022 | 2,555,634 | 1,390 | 4,161,716 | (918,361) | (689,111) | 137,259 | 2,692,893 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 76,615 | 76,615 | 7,868 | 84,483 | |||
Dividends declared | (25,394) | (25,394) | (25,394) | ||||
Other comprehensive (loss) income | (2,726) | (2,726) | 117 | (2,609) | |||
Issuance of stock | 4,389 | 1 | 4,388 | 4,389 | |||
Repurchases of stock | (26,880) | (4) | (1,875) | (25,001) | (26,880) | ||
Stock-based compensation | 12,702 | 12,702 | 12,702 | ||||
Contributions from noncontrolling interests | 4 | 4 | |||||
Distributions to noncontrolling interests | (2,713) | (2,713) | |||||
BALANCE at Mar. 31, 2023 | 2,594,340 | 1,387 | 4,176,931 | (921,087) | (662,891) | 142,535 | 2,736,875 |
BALANCE at Sep. 30, 2023 | 2,212,332 | 1,362 | 4,241,523 | (926,577) | (1,103,976) | 171,379 | 2,383,711 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 95,445 | 95,445 | 29,179 | 124,624 | |||
Dividends declared | (60,856) | (60,856) | (60,856) | ||||
Other comprehensive (loss) income | 16,607 | 16,607 | 37 | 16,644 | |||
Issuance of stock | 16,720 | 10 | 16,710 | 16,720 | |||
Repurchases of stock | (112,192) | (13) | (21,125) | (91,054) | (112,192) | ||
Stock-based compensation | 30,611 | 30,611 | 30,611 | ||||
Contributions from noncontrolling interests | 5,492 | 5,492 | |||||
Distributions to noncontrolling interests | (10,399) | (10,399) | |||||
BALANCE at Mar. 31, 2024 | 2,198,667 | 1,359 | 4,267,719 | (909,970) | (1,160,441) | 195,688 | 2,394,355 |
BALANCE at Dec. 31, 2023 | 2,247,296 | 1,360 | 4,245,340 | (889,788) | (1,109,616) | 180,922 | 2,428,218 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 1,007 | 1,007 | 15,023 | 16,030 | |||
Dividends declared | (30,782) | (30,782) | (30,782) | ||||
Other comprehensive (loss) income | (20,182) | (20,182) | (128) | (20,310) | |||
Issuance of stock | 5,823 | 1 | 5,822 | 5,823 | |||
Repurchases of stock | (20,054) | (2) | 998 | (21,050) | (20,054) | ||
Stock-based compensation | 15,559 | 15,559 | 15,559 | ||||
Contributions from noncontrolling interests | 2,616 | 2,616 | |||||
Distributions to noncontrolling interests | (2,745) | (2,745) | |||||
BALANCE at Mar. 31, 2024 | $ 2,198,667 | $ 1,359 | $ 4,267,719 | $ (909,970) | $ (1,160,441) | $ 195,688 | $ 2,394,355 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 124,624 | $ 181,246 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 87,508 | 87,786 |
Equity in losses (earnings) of unconsolidated joint ventures | 12,882 | (15,545) |
Distribution of earnings from unconsolidated joint ventures | 12,903 | 27,126 |
Non-cash stock compensation | 30,611 | 24,595 |
Loss on sale of discontinued operations | 103,085 | 40,160 |
Foreign currency translation | 8,125 | 6,768 |
Other | (274) | 2,615 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable and contract assets | (383,534) | (376,005) |
Prepaid expenses and other assets | (5,625) | 24,136 |
Accounts payable | 147,593 | 31,542 |
Accrued expenses and other current liabilities | 84,169 | (11,683) |
Contract liabilities | 78,109 | 126,035 |
Other long-term liabilities | (62,758) | (17,321) |
Net cash provided by operating activities | 237,418 | 131,455 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payments for business acquisition, net of cash acquired | (18,686) | |
Investment in unconsolidated joint ventures | (29,930) | (26,127) |
Return of investment in unconsolidated joint ventures | 6,352 | |
Proceeds from sale of investments | 3,180 | 4,786 |
Proceeds from disposal of property and equipment | 249 | 256 |
Payments for capital expenditures | (76,734) | (68,819) |
Net cash used in investing activities | (121,921) | (83,552) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowings under credit agreements | 2,560,032 | 1,544,751 |
Repayments of borrowings under credit agreements | (2,590,331) | (1,564,820) |
Dividends paid | (55,443) | (46,217) |
Proceeds from issuance of common stock | 14,840 | 12,494 |
Proceeds from exercise of stock options | 4,112 | |
Payments to repurchase common stock | (113,086) | (95,191) |
Net distributions to noncontrolling interests | (4,907) | (3,139) |
Other financing activities | 469 | 646 |
Net cash used in financing activities | (188,426) | (147,364) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (168) | 3,548 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (73,097) | (95,913) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 1,262,152 | 1,176,772 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,189,055 | 1,080,859 |
LESS CASH AND CASH EQUIVALENTS INCLUDED IN CURRENT ASSETS HELD FOR SALE | (3,249) | (7,344) |
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS AT END OF PERIOD | $ 1,185,806 | $ 1,073,515 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Mar. 31, 2024 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The accompanying consolidated financial statements of AECOM (the Company) are unaudited and, in the opinion of management, include all adjustments, including all normal recurring items necessary for a fair statement of the Company’s financial position and results of operations for the periods presented. All intercompany balances and transactions are eliminated in consolidation. The consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the fiscal year ended September 30, 2023 (the Annual Report). The accompanying unaudited consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The consolidated financial statements included in this report have been prepared consistently with the accounting policies described in the Annual Report, except as noted, and should be read together with the Annual Report. The results of operations for the three and six months ended March 31, 2024 are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2024. As discussed in more detail in Note 3, the Company concluded that its self-perform at-risk construction businesses met the criteria for held for sale beginning in the first quarter of fiscal 2020 and met the criteria for discontinued operation classification. As a result, the self-perform at-risk construction businesses are presented in the consolidated statements of operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of these businesses are presented in the consolidated balance sheets as assets and liabilities held for sale. The Company reports its annual results of operations based on 52 or 53-week periods ending on the Friday nearest September 30. The Company reports its quarterly results of operations based on periods ending on the Friday nearest December 31, March 31, and June 30. For clarity of presentation, all periods are presented as if the periods ended on September 30, December 31, March 31, and June 30. |
New Accounting Pronouncements a
New Accounting Pronouncements and Changes in Accounting | 6 Months Ended |
Mar. 31, 2024 | |
New Accounting Pronouncements and Changes in Accounting | |
New Accounting Pronouncements and Changes in Accounting | 2. New Accounting Pronouncements and Changes in Accounting In November 2023, the Financial Accounting Standards Board (FASB) amended the guidance of Accounting Standards Codification (ASC) 280, Segment Reporting In December 2023, the FASB issued ASU 2023-09, Income Taxes |
Discontinued Operations, Goodwi
Discontinued Operations, Goodwill, and Intangible Assets | 6 Months Ended |
Mar. 31, 2024 | |
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 power and oil and gas construction businesses in fiscal 2021 and fiscal 2022, respectively. 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 second quarter of fiscal 2024 and 2023, the Company recorded losses related to revised estimates of its contingent consideration receivable recognized in its civil infrastructure construction business of $103.1 million and $38.9 million, respectively. The following table represents summarized balance sheet information of assets and liabilities held for sale (in millions): March 31, September 30, 2024 2023 Cash and cash equivalents $ 3.3 $ 1.9 Receivables and contract assets 101.3 93.3 Other 0.5 — Current assets held for sale $ 105.1 $ 95.2 Property and equipment, net $ 15.8 $ 14.2 Write-down of assets to fair value less cost to sell (15.8) (14.2) Non-current assets held for sale $ — $ — Accounts payable and accrued expenses $ 51.1 45.6 Current liabilities held for sale $ 51.1 $ 45.6 Long-term liabilities held for sale $ 0.8 $ 0.8 The following table represents summarized income statement information of discontinued operations (in millions): Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 Revenue $ 46.5 $ 58.8 $ 101.1 $ 100.5 Cost of revenue 45.0 62.1 97.7 102.4 Gross profit (loss) 1.5 (3.3) 3.4 (1.9) Equity in earnings of joint ventures (3.4) — (3.4) (1.7) Loss on disposal activities (109.6) (40.2) (113.1) (40.2) Transaction costs (0.2) — (0.2) (0.2) Loss from operations (111.7) (43.5) (113.3) (44.0) Other loss (0.5) — (1.1) — Loss before taxes (112.2) (43.5) (114.4) (44.0) Income tax benefit (2.8) (1.7) (3.7) (1.8) Net loss from discontinuing operations $ (109.4) $ (41.8) $ (110.7) $ (42.2) The significant components included in our Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions): Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 Payments for capital expenditures $ 2.1 $ 0.5 $ 2.1 $ 4.5 The Company completed one acquisition in the first quarter of fiscal 2024. The changes in the carrying value of goodwill by reportable segment for the six months ended March 31, 2024 were as follows: Foreign September 30, Exchange March 31, 2023 Impact Acquired 2024 (in millions) Americas $ 2,614.0 $ 0.5 $ 12.2 $ 2,626.7 International 804.9 15.4 — 820.3 Total $ 3,418.9 $ 15.9 $ 12.2 $ 3,447.0 The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives as of March 31, 2024 and September 30, 2023, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows: March 31, 2024 September 30, 2023 Gross Accumulated Intangible Gross Accumulated Intangible Amortization Amount Amortization Assets, Net Amount Amortization Assets, Net Period (in millions) (years) Backlog and Customer relationships $ 671.5 $ (655.4) $ 16.1 $ 663.8 $ (646.0) $ 17.8 1 - 11 Amortization expense of acquired intangible assets included within cost of revenue was $9.4 million and $9.3 million for the six months ended March 31, 2024 and 2023, respectively. The following table presents estimated amortization expense of existing intangible assets for the remainder of fiscal 2024 and for the succeeding years: Fiscal Year (in millions) 2024 (six months remaining) $ 9.2 2025 2.1 2026 1.5 2027 1.5 2028 1.5 Thereafter 0.3 Total $ 16.1 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2024 | |
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 six months ended March 31, 2024 and 2023 were $4.3 billion and $3.6 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: Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (in millions) Cost reimbursable $ 1,605.1 $ 1,511.3 $ 3,222.3 $ 3,026.2 Guaranteed maximum price 1,420.7 1,151.0 2,835.6 2,239.2 Fixed-price 918.1 827.8 1,785.9 1,607.1 Total revenue $ 3,943.9 $ 3,490.1 $ 7,843.8 $ 6,872.5 Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (in millions) Americas $ 3,039.1 $ 2,630.3 $ 6,077.9 $ 5,209.9 Europe, Middle East, India, Africa 619.8 494.1 1,115.2 942.1 Asia-Australia-Pacific 285.0 365.7 650.7 720.5 Total revenue $ 3,943.9 $ 3,490.1 $ 7,843.8 $ 6,872.5 As of March 31, 2024, the Company had allocated $21.4 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. The majority of remaining performance obligation after the first 12 months are expected to be recognized over a two-year period. Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. The Company recognized revenue of $685.3 million and $696.9 million during the six months ended March 31, 2024 and 2023, respectively, that was included in contract liabilities as of September 30, 2023 and 2022, 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: March 31, September 30, 2024 2023 (in millions) Billed $ 2,125.4 $ 2,122.2 Contract retentions 602.8 516.5 Total accounts receivable—gross 2,728.2 2,638.7 Allowance for doubtful accounts and credit losses (81.5) (94.2) Total accounts receivable—net $ 2,646.7 $ 2,544.5 Substantially all contract assets as of March 31, 2024 and September 30, 2023 are expected to be billed and collected within twelve months, except for claims. Significant claims recorded in contract assets and other non-current assets were approximately $170 million and $160 million as of March 31, 2024 and September 30, 2023, respectively. The asset related to the Deactivation, Demolition, and Removal Project retained from the MS Purchaser as defined in and discussed in Note 15 is presented in prepaid expense and other current assets from continuing operations in the Consolidated Balance Sheet. Contract retentions represent amounts invoiced to clients where payments have been withheld from progress payments until the contracted work has been completed and approved by the client 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 March 31, 2024 and September 30, 2023. The Company sold trade receivables to financial institutions, of which $291.9 million and $291.0 million were outstanding as of March 31, 2024 and September 30, 2023, 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. |
Joint Ventures and Variable Int
Joint Ventures and Variable Interest Entities | 6 Months Ended |
Mar. 31, 2024 | |
Joint Ventures and Variable Interest Entities | |
Joint Ventures and Variable Interest Entities | 5. Joint Ventures and Variable Interest Entities The Company’s joint ventures provide architecture, engineering, program management, construction management, and manages investments in real estate projects. Joint ventures, the combination of two or more partners, are generally formed for a specific project. Management of the joint venture is typically controlled by a joint venture executive committee, comprised of representatives from the joint venture partners. The joint venture executive committee normally provides management oversight and controls decisions which could have a significant impact on the joint venture. Some of the Company’s joint ventures have no employees and minimal operating expenses. For these joint ventures, the Company’s employees perform work for the joint venture, which is then billed to a third-party customer by the joint venture. These joint ventures function as pass-through entities to bill the third-party customer. For consolidated joint ventures of this type, the Company records the entire amount of the services performed and the costs associated with these services, including the services provided by the other joint venture partners, in the Company’s result of operations. For certain of these joint ventures where a fee is added by an unconsolidated joint venture to client billings, the Company’s portion of that fee is recorded in equity in earnings of joint ventures. The Company also has joint ventures that have their own employees and operating expenses, and to which the Company generally makes a capital contribution. The Company accounts for these joint ventures either as consolidated entities or equity method investments based on the criteria further discussed below. The Company follows guidance on the consolidation of variable interest entities (VIEs) that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. The process for identifying the primary beneficiary of a VIE requires consideration of the factors that indicate a party has the power to direct the activities that most significantly impact the joint venture’s economic performance, including powers granted to the joint venture’s program manager, powers contained in the joint venture governing board and, to a certain extent, a company’s economic interest in the joint venture. The Company analyzes its joint ventures and classifies them as either: ● a VIE that must be consolidated because the Company is the primary beneficiary or the joint venture is not a VIE and the Company holds the majority voting interest with no significant participative rights available to the other partners; or ● a VIE that does not require consolidation and is treated as an equity method investment because the Company is not the primary beneficiary or the joint venture is not a VIE and the Company does not hold the majority voting interest. As part of the above analysis, if it is determined that the Company has the power to direct the activities that most significantly impact the joint venture’s economic performance, the Company considers whether or not it has the obligation to absorb losses or rights to receive benefits of the VIE that could potentially be significant to the VIE. Contractually required support provided to the Company’s joint ventures is further discussed in Note 15. Summary of financial information of the consolidated joint ventures is as follows: March 31, 2024 September 30, (unaudited) 2023 (in millions) Current assets $ 970.0 $ 806.3 Non-current assets 84.5 75.9 Total assets $ 1,054.5 $ 882.2 Current liabilities $ 878.4 $ 779.6 Non-current liabilities 1.5 1.5 Total liabilities 879.9 781.1 Total AECOM deficit (3.7) (54.9) Noncontrolling interests 178.3 156.0 Total owners’ equity 174.6 101.1 Total liabilities and owners’ equity $ 1,054.5 $ 882.2 Total revenue of the consolidated joint ventures was $1,171.4 million and $941.7 million for the six months ended March 31, 2024 and 2023, respectively. The assets of the Company’s consolidated joint ventures are restricted for use only by the particular joint venture and are not available for the general operations of the Company. Summary of unaudited financial information of the unconsolidated joint ventures, as derived from their unaudited financial statements, was as follows: March 31, September 30, 2024 2023 (in millions) Current assets $ 1,201.8 $ 1,177.4 Non-current assets 1,052.8 996.3 Total assets $ 2,254.6 $ 2,173.7 Current liabilities $ 624.7 $ 605.9 Non-current liabilities 434.2 441.7 Total liabilities 1,058.9 1,047.6 Joint ventures’ equity 1,195.7 1,126.1 Total liabilities and joint ventures’ equity $ 2,254.6 $ 2,173.7 AECOM’s investment in unconsolidated joint ventures $ 137.4 $ 139.2 Six Months Ended March 31, March 31, 2024 2023 (in millions) Revenue $ 696.4 $ 642.1 Cost of revenue 645.9 586.9 Gross profit $ 50.5 $ 55.2 Net income $ 50.7 $ 51.9 Summary of AECOM’s equity in earnings of unconsolidated joint ventures is as follows: Six Months Ended March 31, March 31, 2024 2023 (in millions) Pass-through joint ventures $ 17.6 $ 14.5 Other joint ventures (27.1) 2.8 Total $ (9.5) $ 17.3 |
Pension Benefit Obligations
Pension Benefit Obligations | 6 Months Ended |
Mar. 31, 2024 | |
Pension Benefit Obligations | |
Pension Benefit Obligations | 6. Pension Benefit Obligations In the U.S., the Company sponsors various qualified defined benefit pension plans. Benefits under these plans generally are based on the employee’s years of creditable service and compensation; however, all U.S. defined benefit plans are closed to new participants and have frozen accruals. The Company also sponsors various non-qualified plans in the U.S.; all of these plans are frozen. Outside the U.S., the Company sponsors various pension plans, which are appropriate to the country in which the Company operates, some of which are government mandated. The components of net periodic benefit cost other than the service cost component are included in other income in the consolidated statement of operations. The following table details the components of net periodic benefit cost for the Company’s pension plans for the three and six months ended March 31, 2024 and 2023: Three Months Ended Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 U.S. Int’l U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Components of net periodic benefit cost: Service costs $ — $ — $ — $ 0.1 $ — $ 0.1 $ — $ 0.2 Interest cost on projected benefit obligation 2.5 10.9 2.4 11.9 4.9 21.6 4.9 23.4 Expected return on plan assets (1.4) (14.2) (1.4) (15.1) (2.8) (28.3) (2.9) (29.8) Amortization of net loss (gain) 0.7 (0.6) 0.8 (0.2) 1.5 (1.2) 1.7 (0.3) Net periodic benefit cost (credit) $ 1.8 $ (3.9) $ 1.8 $ (3.3) $ 3.6 $ (7.8) $ 3.7 $ (6.5) The total amounts of employer contributions paid for the six months ended March 31, 2024 were $4.4 million for U.S. plans and $13.1 million for non-U.S. plans. The expected remaining scheduled annual employer contributions for the fiscal year ending September 30, 2024 are $8.5 million for U.S. plans and $12.6 million for non-U.S. plans. |
Debt
Debt | 6 Months Ended |
Mar. 31, 2024 | |
Debt | |
Debt | 7. Debt Debt consisted of the following: March 31, September 30, 2024 2023 (in millions) Credit Agreement $ 1,105.1 $ 1,119.8 2027 Senior Notes 997.3 997.3 Other debt 103.5 100.2 Total debt 2,205.9 2,217.3 Less: Current portion of debt and short-term borrowings (91.5) (89.5) Less: Unamortized debt issuance costs (12.0) (14.4) Long-term debt $ 2,102.4 $ 2,113.4 The following table presents, in millions, scheduled maturities of the Company’s debt as of March 31, 2024: Fiscal Year 2024 (six months remaining) $ 63.3 2025 54.4 2026 417.3 2027 1,013.7 2028 657.2 Total $ 2,205.9 Credit Agreement On February 8, 2021, the Company entered into the 2021 Refinancing Amendment to Credit Agreement (as amended, modified or otherwise supplemented, the “Credit Agreement”), pursuant to which the Company amended and restated its Syndicated 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 “Original Revolving Credit Facility”) and a $246,968,737.50 term loan A facility (the “Original Term A Facility,”), each of which would have matured on February 8, 2026. The proceeds of the Original Revolving Credit Facility and the Original 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. On April 13, 2021, the Company entered into Amendment No. 10 to Credit Agreement, pursuant to which the lenders thereunder provided a secured term B credit facility (the “Original Term B Facility,” and together with the Original Term A Facility and Original Revolving Credit Facility, the “Original Credit Facilities”) to the Company in an aggregate principal amount of $700,000,000. The Original Term B Facility would have matured on April 13, 2028. The proceeds of the Original 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 Credit Agreement, pursuant to which lenders thereunder provided the Company an additional $215,000,000 in aggregate principal amount under the Original Term A Facility. The Company used the net proceeds from the increase in the Original 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 Credit Agreement, pursuant to which LIBOR as a benchmark rate of interest was replaced by, in the case of U.S. 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 Credit Agreement, pursuant to which the spread adjustments with respect to the Original Revolving Credit Facility and the Original Term A Facility were amended. On April 19, 2024, the Company entered into Amendment No. 14 to Syndicated Facility Agreement, pursuant to which the Company obtained a new $1,500,000,000 revolving credit facility (the “New Revolving Credit Facility”), a new $750,000,000 term loan A facility (the “New Term A Facility” and, together with the New Revolving Credit Facility, the “New Pro Rata Facilities”) and a new $700,000,000 term loan B facility (the “New Term B Facility” and, together with the New Pro Rata Facilities, the “New Credit Facilities”). The New Revolving Credit Facility and the New Term A Facility mature on April 19, 2029. The New Term B Facility matures on April 19, 2031. The New Term A Facility and the New Term B Facility were borrowed in full on April 19, 2024 in U.S. dollars. Loans under the New Revolving Credit Facility may be borrowed, and letters of credit thereunder may be issued, in U.S. dollars or in certain foreign currencies. The New Credit Facilities replace in full the Original Revolving Credit Facility, the Original Term A Facility and the Original Term B Facility, and borrowings under the New Credit Facilities were used to refinance in full the Original Credit Facilities and for general corporate purposes. 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 New Credit Facilities. Borrowings under (a) the New Revolving Credit Facility (in U.S. dollars) and the New Term A Facility will bear interest at a rate per annum equal to, at the Company’s option, (i) a Term SOFR rate (with a 0% floor and SOFR adjustment of 0.10%) or (ii) a base rate (with a 0% floor), in each case, plus an applicable margin of 1.25% in the case of the Term SOFR rate and 0.25% in the case of the base rate, and (b) the New Revolving Credit Facility in currencies other U.S. dollars will bear interest at a rate per annum equal to the applicable reference rate for such currency (including any related adjustments), plus an applicable margin of 1.25%. The applicable margin is subject, in each case, to adjustment based on the Company’s consolidated leverage ratio from time to time. Borrowings under the New Term B Facility will bear interest at a rate per annum equal to, at the Company’s option, (a) a Term SOFR rate (with a 0% floor and a SOFR adjustment of 0%) or (b) a base rate (with a 0% floor), in each case, plus an applicable margin of 1.875% in the case of the Term SOFR rate and 0.875% in the case of the base rate. Certain 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 and transact with affiliates. The Company is also required to maintain 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 New Term B Facility. As of March 31, 2024, 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 March 31, 2024 and September 30, 2023, letters of credit totaled $4.4 million and $4.4 million, respectively, under the Company’s Original Revolving Credit Facility. As of March 31, 2024 and September 30, 2023, the Company had $1,145.6 million and $1,145.6 million, respectively, available under its Original 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 March 31, 2024, the estimated fair value of the 2027 Senior Notes was approximately $977.3 million. The fair value of the 2027 Senior Notes as of March 31, 2024 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 March 31, 2024. Other Debt and Other Items Other debt consists primarily of obligations under capital leases and loans, and unsecured credit facilities. The Company’s unsecured credit facilities are primarily used for standby letters of credit issued in connection with general and professional liability insurance programs and for contract performance guarantees. At March 31, 2024 and September 30, 2023, these outstanding standby letters of credit totaled $895.3 million and $878.9 million, respectively. As of March 31, 2024, the Company had $418.9 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 six months ended March 31, 2024 and 2023 was 5.5% and 5.2%, respectively. Interest expense in the consolidated statements of operations included amortization of deferred debt issuance costs for the three and six months ended March 31, 2024 of $1.2 million and $2.4 million, respectively, and for the three and six months ended March 31, 2023 of $1.2 million and $2.4 million, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments and Fair Value Measurements | 6 Months Ended |
Mar. 31, 2024 | |
Derivative Financial Instruments and Fair Value Measurements | |
Derivative Financial Instruments and Fair Value Measurements | 8. Derivative Financial Instruments and Fair Value Measurements The Company uses interest rate derivative contracts to hedge interest rate exposures on the Company’s variable rate debt. The Company enters into foreign currency derivative contracts with financial institutions to reduce the risk that its cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. The Company’s hedging program is not designated for trading or speculative purposes. The Company recognizes derivative instruments as either assets or liabilities on the accompanying consolidated balance sheets at fair value. The Company records changes in the fair value (i.e., gains or losses) of the derivatives that have been designated as accounting hedges in the accompanying consolidated statements of operations as cost of revenue, interest expense or to accumulated other comprehensive loss in the accompanying consolidated balance sheets. Cash Flow Hedges The Company uses interest rate swap 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: March 31, 2024 Notional Amount Notional Amount Fixed Effective Expiration Currency (in millions) Rate Date Date USD 400.0 1.283% February 2023 March 2028 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 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 became 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 receive 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 six months ended March 31, 2024 and 2023. 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, other non-current assets, and other non-current liabilities on March 31, 2024 were $15.2 million, $27.1 million and $0.6 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, 2023 were $17.2 million and $37.5 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 14 for accumulated balances and reporting period activities of derivatives related to reclassifications out of accumulated other comprehensive loss for the six months ended March 31, 2024 and 2023. Additionally, there were no material losses recognized in income due to amounts excluded from effectiveness testing from the Company’s interest rate swap and interest rate cap agreements. |
Share-Based Payments
Share-Based Payments | 6 Months Ended |
Mar. 31, 2024 | |
Share-based Payments | |
Share-based Payments | 9. Share-based Payments 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 units and PEP units activity for the six months ended March 31 was as follows: 2024 2023 Weighted Weighted Weighted Weighted Average Average Average Average Restricted Grant-Date Grant-Date Restricted Grant-Date Grant-Date Stock Units Fair Value PEP Units Fair Value Stock Units Fair Value PEP Units Fair Value (in millions) (in millions) (in millions) (in millions) Outstanding at September 30, 0.8 $ 68.34 0.7 $ 75.54 1.0 $ 53.05 0.7 $ 60.60 Granted 0.3 $ 92.32 0.2 $ 104.82 0.3 $ 83.64 0.2 $ 94.65 PEP units earned — $ — 0.2 $ 52.49 — $ — 0.2 $ 43.19 Vested (0.3) $ 49.99 (0.4) $ 52.49 (0.4) $ 44.95 (0.4) $ 43.19 Outstanding at March 31, 0.8 $ 83.90 0.7 $ 95.37 0.9 $ 65.75 0.7 $ 75.53 Total compensation expense related to these share-based payments including stock options was $30.6 million and $24.6 million during the six months ended March 31, 2024 and 2023, respectively. Unrecognized compensation expense related to total share-based payments outstanding as of March 31, 2024 and September 30, 2023 was $78.7 million and $48.3 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 | 6 Months Ended |
Mar. 31, 2024 | |
Income Taxes | |
Income Taxes | 10. Income Taxes The Company’s effective tax rate was 23.4% and 23.1% for the six months ended March 31, 2024 and 2023, respectively. The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company’s effective tax rate for the six-month period ended March 31, 2024 were a tax benefit of $29.4 million related to income tax credits and incentives, tax expense of $26.2 million related to foreign residual income, tax expense of $12.3 million related to state income taxes, a tax benefit of $6.9 million related to an audit settlement, and tax expense of $6.6 million related to changes in valuation allowances. All these items, except for the audit settlement, are expected to have a continuing impact on the effective tax rate for the remainder of the fiscal year. The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company’s effective tax rate for the six-month period ended March 31, 2023 were a tax benefit of $23.6 million related to income tax credits and incentives, tax expense of $19.1 million related to foreign residual income, and tax expense of $9.0 million related to state income taxes. During the first quarter of fiscal 2024, the Company settled its tax audit in Hong Kong for fiscal year 2011 through fiscal year 2021 and recorded a tax benefit of $6.9 million due primarily to changes in uncertain tax positions. The Company is utilizing the annual effective tax rate method under ASC 740 to compute its interim tax provision. The Company’s effective tax rate fluctuates from quarter to quarter due to various factors including the change in the mix of global income and expenses, outcomes of administrative audits, changes in the assessment of valuation allowances due to management’s consideration of new positive or negative evidence during the quarter, and changes in enacted tax laws. The U.S.and many international legislative and regulatory bodies have proposed legislation that could significantly impact how our business activities are taxed. These proposed changes could have a material impact on the Company’s income tax expense and deferred tax balances. The Company is currently under tax audit in several jurisdictions including the U.S. where its federal income tax returns for fiscal 2017 through 2020 are being examined by the IRS. Disputes can arise with tax authorities involving issues related to the timing of deductions, the calculation and use of credits, and the taxation of income in various tax jurisdictions because of differing interpretations or application of tax laws, regulations, and relevant facts. The IRS is currently auditing certain tax credits and the methodology for calculating the credits. While the Company has reserves for uncertain tax positions and has historically been able to sustain the credits in previous audit cycles without adjustment, the Company believes it’s reasonably possible there could be an adjustment to the liability for uncertain tax positions within the next twelve months related to this issue. However, given the early stages of the audit of these credits, the Company is not able to reasonably estimate the range of potential outcomes. 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. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share | |
Earnings Per Share | 11. Earnings Per Share Basic earnings per share (EPS) excludes dilution and is computed by dividing net income attributable to AECOM by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income attributable to AECOM by the weighted average number of common shares outstanding and potential common shares for the period. The Company includes as potential common shares the weighted average dilutive effects of equity awards using the treasury stock method. For the three and six months ended March 31, 2024 and 2023, equity awards excluded from the calculation of potential common shares were not significant. The following table sets forth a reconciliation of the denominators for basic and diluted earnings per share: Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (in millions) Denominator for basic earnings per share 136.0 138.9 136.0 138.8 Potential common shares 0.7 1.4 0.9 1.7 Denominator for diluted earnings per share 136.7 140.3 136.9 140.5 |
Leases
Leases | 6 Months Ended |
Mar. 31, 2024 | |
Leases | |
Leases | 12. 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. The components of lease expenses are as follows: Three Months Ended Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (in millions) Operating lease cost $ 37.7 $ 41.6 $ 75.1 $ 83.1 Finance lease cost: Amortization of right-of-use assets 7.3 5.7 14.1 10.8 Interest on lease liabilities 0.7 0.6 1.5 1.2 Variable lease cost 8.6 8.6 17.5 16.5 Total lease cost $ 54.3 $ 56.5 $ 108.2 $ 111.6 Additional balance sheet information related to leases is as follows: As of As of (in millions except as noted) Balance Sheet Classification March 31, 2024 September 30, 2023 Assets: Operating lease assets Operating lease right-of-use assets $ 422.9 $ 447.0 Finance lease assets Property and equipment – net 69.1 64.8 Total lease assets $ 492.0 $ 511.8 Liabilities: Current: Operating lease liabilities Accrued expenses and other current liabilities $ 142.0 $ 139.8 Finance lease liabilities Current portion of long-term debt 27.3 25.0 Total current lease liabilities 169.3 164.8 Non-current: Operating lease liabilities Operating lease liabilities, noncurrent 507.5 548.9 Finance lease liabilities Long-term debt 41.3 39.8 Total non-current lease liabilities $ 548.8 $ 588.7 As of As of March 31, 2024 September 30, 2023 Weighted average remaining lease term (in years): Operating leases 6.2 6.4 Finance leases 2.8 2.9 Weighted average discount rates: Operating leases 5.0 % 4.3 % Finance leases 4.3 % 4.1 % Additional cash flow information related to leases is as follows: Six Months Ended March 31, March 31, 2024 2023 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 92.7 $ 94.8 Operating cash flows from finance leases 1.6 1.2 Financing cash flows from finance leases 15.1 11.3 Right-of-use assets obtained in exchange for new operating leases 38.0 66.4 Right-of-use assets obtained in exchange for new finance leases 17.9 19.6 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 (six months remaining) $ 89.3 $ 15.5 2025 152.4 26.6 2026 121.3 19.4 2027 92.2 10.4 2028 79.9 1.3 Thereafter 223.5 — Total lease payments $ 758.6 $ 73.2 Less: Amounts representing interest $ (109.1) $ (4.6) Total lease liabilities $ 649.5 $ 68.6 |
Other Financial Information
Other Financial Information | 6 Months Ended |
Mar. 31, 2024 | |
Other Financial Information | |
Other Financial Information | 13. Other Financial Information Accrued expenses and other current liabilities consist of the following: March 31, September 30, 2024 2023 (in millions) Accrued salaries and benefits $ 569.6 $ 599.8 Accrued contract costs 1,416.7 1,340.4 Other accrued expenses 398.9 347.3 Total $ 2,385.2 $ 2,287.5 Accrued contract costs above include balances related to professional liability accruals of $793.8 million and $809.6 million as of March 31, 2024 and September 30, 2023, respectively. The remaining accrued contract costs primarily relate to costs for services provided by subcontractors and other non-employees. Liabilities recorded related to accrued contract losses were not material as of March 31, 2024 and September 30, 2023. The Company did not have material revisions to estimates for contracts where revenue is recognized using the input method during the six months ended March 31, 2024 and 2023. During the first half of fiscal 2024, the Company incurred restructuring expenses of $51.6 million, including personnel and other costs of $38.6 million and real estate costs of $13.0 million, of which $7.3 million was accrued and unpaid at March 31, 2024. During the first half of fiscal 2023, the Company incurred restructuring expenses of $41.4 million, including personnel and other costs of $39.0 million and real estate costs of $2.4 million, of which $30.7 million was accrued and unpaid at March 31, 2023. On March 21, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.22 per share, which is payable on May 10, 2024 to stockholders of record as of April 24, 2024. As of March 31, 2024, accrued and unpaid dividends totaled $32.1 million and were classified within other accrued expenses on the consolidated balance sheet. |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 31, 2024 | |
Reclassifications out of Accumulated Other Comprehensive Loss | |
Reclassifications out of Accumulated Other Comprehensive Loss | 14. Reclassifications out of Accumulated Other Comprehensive Loss The accumulated balances and reporting period activities for the three and six months ended March 31, 2024 and 2023 related to reclassifications out of accumulated other comprehensive loss are summarized as follows (in millions): Foreign Accumulated Pension Currency Gain/(Loss) on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at December 31, 2023 $ (235.0) $ (679.7) $ 24.9 $ (889.8) Other comprehensive income (loss) before reclassification 1.9 (27.0) 8.3 (16.8) Amounts reclassified from accumulated other comprehensive loss 0.1 — (3.5) (3.4) Balances at March 31, 2024 $ (233.0) $ (706.7) $ 29.7 $ (910.0) Foreign Accumulated Pension Currency Gain/(Loss) on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at December 31, 2022 $ (232.1) $ (721.4) $ 35.1 $ (918.4) Other comprehensive (loss) income before reclassification (4.2) 8.5 (5.6) (1.3) Amounts reclassified from accumulated other comprehensive income (loss) 0.5 — (1.9) (1.4) Balances at March 31, 2023 $ (235.8) $ (712.9) $ 27.6 $ (921.1) Foreign Accumulated Pension Currency Gain/(Loss) on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2023 $ (226.0) $ (739.7) $ 39.1 $ (926.6) Other comprehensive (loss) income before reclassification (7.2) 33.0 (2.3) 23.5 Amounts reclassified from accumulated other comprehensive loss 0.2 — (7.1) (6.9) Balances at March 31, 2024 $ (233.0) $ (706.7) $ 29.7 $ (910.0) Foreign Accumulated Pension Currency Gain/(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 (19.6) 86.4 (7.4) 59.4 Amounts reclassified from accumulated other comprehensive income (loss) 1.1 — (1.9) (0.8) Balances at March 31, 2023 $ (235.8) $ (712.9) $ 27.6 $ (921.1) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies | |
Commitments and Contingencies | 15. Commitments and Contingencies The Company records amounts representing its probable estimated liabilities relating to claims, guarantees, litigation, audits and investigations. The Company relies in part on qualified actuaries to assist it in determining the level of reserves to establish for insurance-related claims that are known and have been asserted against it, and for insurance-related claims that are believed to have been incurred based on actuarial analysis, but have not yet been reported to the Company’s claims administrators as of the respective balance sheet dates. The Company includes any adjustments to such insurance reserves in its consolidated results of operations. The Company’s reasonably possible loss disclosures are presented on a gross basis prior to the consideration of insurance recoveries. The Company does not record gain contingencies until they are realized. In the ordinary course of business, the Company may not be aware that it or its affiliates are under investigation and may not be aware of whether or not a known investigation has been concluded. In the ordinary course of business, the Company may enter into various arrangements providing financial or performance assurance to clients, lenders, or partners. Such arrangements include standby letters of credit, surety bonds, and corporate guarantees to support the creditworthiness or the project execution commitments of its affiliates, partnerships and joint ventures. 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 March 31, 2024 and September 30, 2023, these outstanding standby letters of credit totaled $895.3 million and $878.9 million, respectively. As of March 31, 2024, the Company had $418.9 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 March 31, 2024, the Company was contingently liable in the amount of approximately $899.7 million in issued standby letters of credit and $4.7 billion in issued surety bonds primarily to support project execution. In the ordinary course of business, the Company enters into various agreements providing financial or performance assurances to clients on behalf of certain unconsolidated partnerships, joint ventures and other jointly executed contracts. These agreements are entered into primarily to support the project execution commitments of these entities. The Company’s investment adviser jointly manages and sponsors the AECOM-Canyon Equity Fund, L.P. (the “Fund”), in which the Company indirectly holds an equity interest and has an ongoing capital commitment to fund investments. At March 31, 2024, the Company has capital commitments of $7.1 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. In February 2024, the Company was informed of a potential liability as one of the indemnitors on a divested business’ surety bonds. The Company does not have sufficient information to determine the range of potential impacts, however, it is reasonably possible that the Company may incur additional costs related to these bonds. 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 of 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 Thirteenth 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. Trial is expected to begin in the second quarter of fiscal year 2025. 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 the Company is continuing to assess. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Mar. 31, 2024 | |
Reportable Segments | |
Reportable Segments | 16. Reportable Segments The Company manages its operations under three reportable segments 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. Although the services provided are similar, 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 operating segments into its Americas and International reportable segments based on their similar characteristics, including similar long term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers. The following tables set forth summarized financial information concerning the Company’s reportable segments: AECOM Reportable Segments: Americas International Capital Corporate Total ( $ in millions) Three Months Ended March 31, 2024: Revenue $ 3,038.6 $ 904.8 $ 0.5 $ — $ 3,943.9 Gross profit 184.4 76.2 0.5 — 261.1 Equity in earnings of joint ventures 4.8 5.0 9.7 — 19.5 General and administrative expenses — — (9.7) (35.0) (44.7) Restructuring costs — — — (35.4) (35.4) Operating income 189.2 81.2 0.5 (70.4) 200.5 Gross profit as a % of revenue 6.1 % 8.4 % 6.6 % Three Months Ended March 31, 2023: Revenue $ 2,630.2 $ 859.8 $ 0.1 $ — $ 3,490.1 Gross profit 173.3 54.7 0.1 — 228.1 Equity in earnings of joint ventures 4.9 5.4 (2.8) — 7.5 General and administrative expenses — — (2.9) (31.3) (34.2) Restructuring costs — — — (3.9) (3.9) Operating income (loss) 178.2 60.1 (5.6) (35.2) 197.5 Gross profit as a % of revenue 6.6 % 6.4 % 6.5 % Six Months Ended March 31, 2024: Revenue $ 6,077.3 $ 1,765.8 $ 0.7 $ — $ 7,843.8 Gross profit 355.4 149.0 0.7 — 505.1 Equity in earnings of joint ventures 8.4 9.3 (27.2) — (9.5) General and administrative expenses — — (12.1) (68.3) (80.4) Restructuring costs — — — (51.6) (51.6) Operating income (loss) 363.8 158.3 (38.6) (119.9) 363.6 Gross profit as a % of revenue 5.8 % 8.4 % 6.4 % Six Months Ended March 31, 2023: Revenue $ 5,209.5 $ 1,662.6 $ 0.4 $ — $ 6,872.5 Gross profit 336.2 106.5 0.4 — 443.1 Equity in earnings of joint ventures 5.8 8.7 2.8 — 17.3 General and administrative expenses — — (5.6) (64.2) (69.8) Restructuring costs — — — (41.4) (41.4) Operating income (loss) 342.0 115.2 (2.4) (105.6) 349.2 Gross profit as a % of revenue 6.5 % 6.4 % 6.4 % Reportable Segments: Total assets March 31, 2024 $ 7,754.4 $ 2,671.4 $ 53.2 $ 873.3 September 30, 2023 $ 7,433.1 $ 2,536.2 $ 64.5 $ 1,104.4 |
Discontinued Operations, Good_2
Discontinued Operations, Goodwill, and Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
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): March 31, September 30, 2024 2023 Cash and cash equivalents $ 3.3 $ 1.9 Receivables and contract assets 101.3 93.3 Other 0.5 — Current assets held for sale $ 105.1 $ 95.2 Property and equipment, net $ 15.8 $ 14.2 Write-down of assets to fair value less cost to sell (15.8) (14.2) Non-current assets held for sale $ — $ — Accounts payable and accrued expenses $ 51.1 45.6 Current liabilities held for sale $ 51.1 $ 45.6 Long-term liabilities held for sale $ 0.8 $ 0.8 The following table represents summarized income statement information of discontinued operations (in millions): Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 Revenue $ 46.5 $ 58.8 $ 101.1 $ 100.5 Cost of revenue 45.0 62.1 97.7 102.4 Gross profit (loss) 1.5 (3.3) 3.4 (1.9) Equity in earnings of joint ventures (3.4) — (3.4) (1.7) Loss on disposal activities (109.6) (40.2) (113.1) (40.2) Transaction costs (0.2) — (0.2) (0.2) Loss from operations (111.7) (43.5) (113.3) (44.0) Other loss (0.5) — (1.1) — Loss before taxes (112.2) (43.5) (114.4) (44.0) Income tax benefit (2.8) (1.7) (3.7) (1.8) Net loss from discontinuing operations $ (109.4) $ (41.8) $ (110.7) $ (42.2) The significant components included in our Consolidated Statement of Cash Flows for the discontinued operations are as follows (in millions): Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 Payments for capital expenditures $ 2.1 $ 0.5 $ 2.1 $ 4.5 |
Schedule of changes in the carrying value of goodwill by reportable segment | Foreign September 30, Exchange March 31, 2023 Impact Acquired 2024 (in millions) Americas $ 2,614.0 $ 0.5 $ 12.2 $ 2,626.7 International 804.9 15.4 — 820.3 Total $ 3,418.9 $ 15.9 $ 12.2 $ 3,447.0 |
Schedule of gross amounts and accumulated amortization of finite intangible assets included in intangible assets | March 31, 2024 September 30, 2023 Gross Accumulated Intangible Gross Accumulated Intangible Amortization Amount Amortization Assets, Net Amount Amortization Assets, Net Period (in millions) (years) Backlog and Customer relationships $ 671.5 $ (655.4) $ 16.1 $ 663.8 $ (646.0) $ 17.8 1 - 11 |
Schedule of estimated future amortization expense of intangible assets | Fiscal Year (in millions) 2024 (six months remaining) $ 9.2 2025 2.1 2026 1.5 2027 1.5 2028 1.5 Thereafter 0.3 Total $ 16.1 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition. | |
Schedule of revenues disaggregated by revenue sources | Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (in millions) Cost reimbursable $ 1,605.1 $ 1,511.3 $ 3,222.3 $ 3,026.2 Guaranteed maximum price 1,420.7 1,151.0 2,835.6 2,239.2 Fixed-price 918.1 827.8 1,785.9 1,607.1 Total revenue $ 3,943.9 $ 3,490.1 $ 7,843.8 $ 6,872.5 Three months ended Six months ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (in millions) Americas $ 3,039.1 $ 2,630.3 $ 6,077.9 $ 5,209.9 Europe, Middle East, India, Africa 619.8 494.1 1,115.2 942.1 Asia-Australia-Pacific 285.0 365.7 650.7 720.5 Total revenue $ 3,943.9 $ 3,490.1 $ 7,843.8 $ 6,872.5 |
Schedule of net accounts receivable | March 31, September 30, 2024 2023 (in millions) Billed $ 2,125.4 $ 2,122.2 Contract retentions 602.8 516.5 Total accounts receivable—gross 2,728.2 2,638.7 Allowance for doubtful accounts and credit losses (81.5) (94.2) Total accounts receivable—net $ 2,646.7 $ 2,544.5 |
Joint Ventures and Variable I_2
Joint Ventures and Variable Interest Entities (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Joint Ventures and Variable Interest Entities | |
Schedule of financial information of the consolidated joint ventures | March 31, 2024 September 30, (unaudited) 2023 (in millions) Current assets $ 970.0 $ 806.3 Non-current assets 84.5 75.9 Total assets $ 1,054.5 $ 882.2 Current liabilities $ 878.4 $ 779.6 Non-current liabilities 1.5 1.5 Total liabilities 879.9 781.1 Total AECOM deficit (3.7) (54.9) Noncontrolling interests 178.3 156.0 Total owners’ equity 174.6 101.1 Total liabilities and owners’ equity $ 1,054.5 $ 882.2 |
Schedule of financial information of the unconsolidated joint ventures, as derived from their unaudited financial statements | March 31, September 30, 2024 2023 (in millions) Current assets $ 1,201.8 $ 1,177.4 Non-current assets 1,052.8 996.3 Total assets $ 2,254.6 $ 2,173.7 Current liabilities $ 624.7 $ 605.9 Non-current liabilities 434.2 441.7 Total liabilities 1,058.9 1,047.6 Joint ventures’ equity 1,195.7 1,126.1 Total liabilities and joint ventures’ equity $ 2,254.6 $ 2,173.7 AECOM’s investment in unconsolidated joint ventures $ 137.4 $ 139.2 Six Months Ended March 31, March 31, 2024 2023 (in millions) Revenue $ 696.4 $ 642.1 Cost of revenue 645.9 586.9 Gross profit $ 50.5 $ 55.2 Net income $ 50.7 $ 51.9 |
Schedule of AECOM's equity in earnings of unconsolidated joint ventures | Six Months Ended March 31, March 31, 2024 2023 (in millions) Pass-through joint ventures $ 17.6 $ 14.5 Other joint ventures (27.1) 2.8 Total $ (9.5) $ 17.3 |
Pension Benefit Obligations (Ta
Pension Benefit Obligations (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Pension Benefit Obligations | |
Schedule of components of net periodic cost for the Company's pension and post-retirement plans | Three Months Ended Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 U.S. Int’l U.S. Int’l U.S. Int’l U.S. Int’l (in millions) Components of net periodic benefit cost: Service costs $ — $ — $ — $ 0.1 $ — $ 0.1 $ — $ 0.2 Interest cost on projected benefit obligation 2.5 10.9 2.4 11.9 4.9 21.6 4.9 23.4 Expected return on plan assets (1.4) (14.2) (1.4) (15.1) (2.8) (28.3) (2.9) (29.8) Amortization of net loss (gain) 0.7 (0.6) 0.8 (0.2) 1.5 (1.2) 1.7 (0.3) Net periodic benefit cost (credit) $ 1.8 $ (3.9) $ 1.8 $ (3.3) $ 3.6 $ (7.8) $ 3.7 $ (6.5) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Debt | |
Schedule of debt | March 31, September 30, 2024 2023 (in millions) Credit Agreement $ 1,105.1 $ 1,119.8 2027 Senior Notes 997.3 997.3 Other debt 103.5 100.2 Total debt 2,205.9 2,217.3 Less: Current portion of debt and short-term borrowings (91.5) (89.5) Less: Unamortized debt issuance costs (12.0) (14.4) Long-term debt $ 2,102.4 $ 2,113.4 |
Schedule of maturities of debt | March 31, September 30, 2024 2023 (in millions) Credit Agreement $ 1,105.1 $ 1,119.8 2027 Senior Notes 997.3 997.3 Other debt 103.5 100.2 Total debt 2,205.9 2,217.3 Less: Current portion of debt and short-term borrowings (91.5) (89.5) Less: Unamortized debt issuance costs (12.0) (14.4) Long-term debt $ 2,102.4 $ 2,113.4 The following table presents, in millions, scheduled maturities of the Company’s debt as of March 31, 2024: Fiscal Year 2024 (six months remaining) $ 63.3 2025 54.4 2026 417.3 2027 1,013.7 2028 657.2 Total $ 2,205.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Derivative Financial Instruments and Fair Value Measurements | |
Schedule of notional principle, fixed rates and related expiration dates of outstanding interest rate swap agreements | March 31, 2024 Notional Amount Notional Amount Fixed Effective Expiration Currency (in millions) Rate Date Date USD 400.0 1.283% February 2023 March 2028 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 |
Share-based Payments (Tables)
Share-based Payments (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Share-based Payments | |
Schedule of restricted stock units and PEP units activity | 2024 2023 Weighted Weighted Weighted Weighted Average Average Average Average Restricted Grant-Date Grant-Date Restricted Grant-Date Grant-Date Stock Units Fair Value PEP Units Fair Value Stock Units Fair Value PEP Units Fair Value (in millions) (in millions) (in millions) (in millions) Outstanding at September 30, 0.8 $ 68.34 0.7 $ 75.54 1.0 $ 53.05 0.7 $ 60.60 Granted 0.3 $ 92.32 0.2 $ 104.82 0.3 $ 83.64 0.2 $ 94.65 PEP units earned — $ — 0.2 $ 52.49 — $ — 0.2 $ 43.19 Vested (0.3) $ 49.99 (0.4) $ 52.49 (0.4) $ 44.95 (0.4) $ 43.19 Outstanding at March 31, 0.8 $ 83.90 0.7 $ 95.37 0.9 $ 65.75 0.7 $ 75.53 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share | |
Schedule of reconciliation of the denominators for basic and diluted EPS | Three Months Ended Six Months Ended March 31, March 31, March 31, March 31, 2024 2023 2024 2023 (in millions) Denominator for basic earnings per share 136.0 138.9 136.0 138.8 Potential common shares 0.7 1.4 0.9 1.7 Denominator for diluted earnings per share 136.7 140.3 136.9 140.5 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Leases | |
Schedule of components of lease expenses | Three Months Ended Six Months Ended March 31, 2024 March 31, 2023 March 31, 2024 March 31, 2023 (in millions) Operating lease cost $ 37.7 $ 41.6 $ 75.1 $ 83.1 Finance lease cost: Amortization of right-of-use assets 7.3 5.7 14.1 10.8 Interest on lease liabilities 0.7 0.6 1.5 1.2 Variable lease cost 8.6 8.6 17.5 16.5 Total lease cost $ 54.3 $ 56.5 $ 108.2 $ 111.6 |
Schedule of additional balance sheet information related to leases | As of As of (in millions except as noted) Balance Sheet Classification March 31, 2024 September 30, 2023 Assets: Operating lease assets Operating lease right-of-use assets $ 422.9 $ 447.0 Finance lease assets Property and equipment – net 69.1 64.8 Total lease assets $ 492.0 $ 511.8 Liabilities: Current: Operating lease liabilities Accrued expenses and other current liabilities $ 142.0 $ 139.8 Finance lease liabilities Current portion of long-term debt 27.3 25.0 Total current lease liabilities 169.3 164.8 Non-current: Operating lease liabilities Operating lease liabilities, noncurrent 507.5 548.9 Finance lease liabilities Long-term debt 41.3 39.8 Total non-current lease liabilities $ 548.8 $ 588.7 As of As of March 31, 2024 September 30, 2023 Weighted average remaining lease term (in years): Operating leases 6.2 6.4 Finance leases 2.8 2.9 Weighted average discount rates: Operating leases 5.0 % 4.3 % Finance leases 4.3 % 4.1 % |
Schedule of additional cash flow information related to leases | Six Months Ended March 31, March 31, 2024 2023 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 92.7 $ 94.8 Operating cash flows from finance leases 1.6 1.2 Financing cash flows from finance leases 15.1 11.3 Right-of-use assets obtained in exchange for new operating leases 38.0 66.4 Right-of-use assets obtained in exchange for new finance leases 17.9 19.6 |
Schedule of total remaining lease payments under the Company's operating and finance leases | Operating Leases Finance Leases Fiscal Year (in millions) 2024 (six months remaining) $ 89.3 $ 15.5 2025 152.4 26.6 2026 121.3 19.4 2027 92.2 10.4 2028 79.9 1.3 Thereafter 223.5 — Total lease payments $ 758.6 $ 73.2 Less: Amounts representing interest $ (109.1) $ (4.6) Total lease liabilities $ 649.5 $ 68.6 |
Other Financial Information (Ta
Other Financial Information (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Other Financial Information | |
Schedule of accrued expenses and other current liabilities | March 31, September 30, 2024 2023 (in millions) Accrued salaries and benefits $ 569.6 $ 599.8 Accrued contract costs 1,416.7 1,340.4 Other accrued expenses 398.9 347.3 Total $ 2,385.2 $ 2,287.5 |
Reclassifications out of Accu_2
Reclassifications out of Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
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 three and six months ended March 31, 2024 and 2023 related to reclassifications out of accumulated other comprehensive loss are summarized as follows (in millions): Foreign Accumulated Pension Currency Gain/(Loss) on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at December 31, 2023 $ (235.0) $ (679.7) $ 24.9 $ (889.8) Other comprehensive income (loss) before reclassification 1.9 (27.0) 8.3 (16.8) Amounts reclassified from accumulated other comprehensive loss 0.1 — (3.5) (3.4) Balances at March 31, 2024 $ (233.0) $ (706.7) $ 29.7 $ (910.0) Foreign Accumulated Pension Currency Gain/(Loss) on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at December 31, 2022 $ (232.1) $ (721.4) $ 35.1 $ (918.4) Other comprehensive (loss) income before reclassification (4.2) 8.5 (5.6) (1.3) Amounts reclassified from accumulated other comprehensive income (loss) 0.5 — (1.9) (1.4) Balances at March 31, 2023 $ (235.8) $ (712.9) $ 27.6 $ (921.1) Foreign Accumulated Pension Currency Gain/(Loss) on Other Related Translation Derivative Comprehensive Adjustments Adjustments Instruments Loss Balances at September 30, 2023 $ (226.0) $ (739.7) $ 39.1 $ (926.6) Other comprehensive (loss) income before reclassification (7.2) 33.0 (2.3) 23.5 Amounts reclassified from accumulated other comprehensive loss 0.2 — (7.1) (6.9) Balances at March 31, 2024 $ (233.0) $ (706.7) $ 29.7 $ (910.0) Foreign Accumulated Pension Currency Gain/(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 (19.6) 86.4 (7.4) 59.4 Amounts reclassified from accumulated other comprehensive income (loss) 1.1 — (1.9) (0.8) Balances at March 31, 2023 $ (235.8) $ (712.9) $ 27.6 $ (921.1) |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Reportable Segments | |
Summary of financial information concerning the Company's reportable segments | AECOM Reportable Segments: Americas International Capital Corporate Total ( $ in millions) Three Months Ended March 31, 2024: Revenue $ 3,038.6 $ 904.8 $ 0.5 $ — $ 3,943.9 Gross profit 184.4 76.2 0.5 — 261.1 Equity in earnings of joint ventures 4.8 5.0 9.7 — 19.5 General and administrative expenses — — (9.7) (35.0) (44.7) Restructuring costs — — — (35.4) (35.4) Operating income 189.2 81.2 0.5 (70.4) 200.5 Gross profit as a % of revenue 6.1 % 8.4 % 6.6 % Three Months Ended March 31, 2023: Revenue $ 2,630.2 $ 859.8 $ 0.1 $ — $ 3,490.1 Gross profit 173.3 54.7 0.1 — 228.1 Equity in earnings of joint ventures 4.9 5.4 (2.8) — 7.5 General and administrative expenses — — (2.9) (31.3) (34.2) Restructuring costs — — — (3.9) (3.9) Operating income (loss) 178.2 60.1 (5.6) (35.2) 197.5 Gross profit as a % of revenue 6.6 % 6.4 % 6.5 % Six Months Ended March 31, 2024: Revenue $ 6,077.3 $ 1,765.8 $ 0.7 $ — $ 7,843.8 Gross profit 355.4 149.0 0.7 — 505.1 Equity in earnings of joint ventures 8.4 9.3 (27.2) — (9.5) General and administrative expenses — — (12.1) (68.3) (80.4) Restructuring costs — — — (51.6) (51.6) Operating income (loss) 363.8 158.3 (38.6) (119.9) 363.6 Gross profit as a % of revenue 5.8 % 8.4 % 6.4 % Six Months Ended March 31, 2023: Revenue $ 5,209.5 $ 1,662.6 $ 0.4 $ — $ 6,872.5 Gross profit 336.2 106.5 0.4 — 443.1 Equity in earnings of joint ventures 5.8 8.7 2.8 — 17.3 General and administrative expenses — — (5.6) (64.2) (69.8) Restructuring costs — — — (41.4) (41.4) Operating income (loss) 342.0 115.2 (2.4) (105.6) 349.2 Gross profit as a % of revenue 6.5 % 6.4 % 6.4 % Reportable Segments: Total assets March 31, 2024 $ 7,754.4 $ 2,671.4 $ 53.2 $ 873.3 September 30, 2023 $ 7,433.1 $ 2,536.2 $ 64.5 $ 1,104.4 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 6 Months Ended |
Mar. 31, 2024 | |
Minimum | |
Basis of presentation | |
Length of fiscal year | 364 days |
Maximum | |
Basis of presentation | |
Length of fiscal year | 371 days |
Discontinued Operations, Good_3
Discontinued Operations, Goodwill, and Intangible Assets - Sale of businesses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Held for sale | Oil and gas construction business | ||
Discontinued Operations, Goodwill and Intangible Assets | ||
Amount of cash payment for contingent consideration collected | $ 103.1 | $ 38.9 |
Discontinued Operations, Good_4
Discontinued Operations, Goodwill, and Intangible Assets - Balance sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Summary of financial information of the Disposal Group is as follows: | ||
Long-term liabilities held for sale | $ 796 | $ 792 |
Held for sale | ||
Summary of financial information of the Disposal Group is as follows: | ||
Cash and cash equivalents | 3,300 | 1,900 |
Receivables and contract assets | 101,300 | 93,300 |
Other | 500 | |
Current assets held for sale | 105,100 | 95,200 |
Property and equipment, net | 15,800 | 14,200 |
Write-down of assets to fair value less cost to sell | (15,800) | (14,200) |
Accounts payable and accrued expenses | 51,100 | 45,600 |
Current liabilities held for sale | 51,100 | 45,600 |
Long-term liabilities held for sale | $ 800 | $ 800 |
Discontinued Operations, Good_5
Discontinued Operations, Goodwill, and Intangible Assets - Income statement information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Discontinued Operations, Goodwill and Intangible Assets | ||||
Net loss from discontinuing operations | $ (109,388) | $ (41,775) | $ (110,675) | $ (42,163) |
Held for sale | ||||
Discontinued Operations, Goodwill and Intangible Assets | ||||
Revenue | 46,500 | 58,800 | 101,100 | 100,500 |
Cost of revenue | 45,000 | 62,100 | 97,700 | 102,400 |
Gross profit | 1,500 | (3,300) | 3,400 | (1,900) |
Equity in earnings of joint ventures | (3,400) | (3,400) | (1,700) | |
Loss on disposal activities | (109,600) | (40,200) | (113,100) | (40,200) |
Transaction costs | (200) | (200) | (200) | |
Loss from operations | (111,700) | (43,500) | (113,300) | (44,000) |
Other loss | (500) | (1,100) | ||
Loss before taxes | (112,200) | (43,500) | (114,400) | (44,000) |
Income tax benefit | (2,800) | (1,700) | (3,700) | (1,800) |
Net loss from discontinuing operations | $ (109,400) | $ (41,800) | $ (110,700) | $ (42,200) |
Discontinued Operations, Good_6
Discontinued Operations, Goodwill, and Intangible Assets - Statement of cash flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Held for sale | ||||
Discontinued Operations, Goodwill and Intangible Assets | ||||
Payments for capital expenditures | $ 2.1 | $ 0.5 | $ 2.1 | $ 4.5 |
Discontinued Operations, Good_7
Discontinued Operations, Goodwill, and Intangible Assets - Goodwill by segments (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2024 USD ($) | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | $ 3,418,930 |
Foreign exchange impact | 15,900 |
Acquired | 12,200 |
Goodwill at the end of the period | 3,446,984 |
Americas | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | 2,614,000 |
Foreign exchange impact | 500 |
Acquired | 12,200 |
Goodwill at the end of the period | 2,626,700 |
International | |
Changes in the carrying value of goodwill by reporting segment | |
Goodwill at the beginning of the period | 804,900 |
Foreign exchange impact | 15,400 |
Goodwill at the end of the period | $ 820,300 |
Discontinued Operations, Good_8
Discontinued Operations, Goodwill, and Intangible Assets - Intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Discontinued Operations, Goodwill and Intangible Assets | ||
Intangible Assets, Net | $ 16,111 | $ 17,769 |
Backlog and Customer relationships | ||
Discontinued Operations, Goodwill and Intangible Assets | ||
Gross Amount | 671,500 | 663,800 |
Accumulated Amortization | (655,400) | (646,000) |
Intangible Assets, Net | $ 16,100 | $ 17,800 |
Backlog and Customer relationships | Minimum | ||
Discontinued Operations, Goodwill and Intangible Assets | ||
Amortization Period | 1 year | |
Backlog and 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 | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Discontinued Operations, Goodwill, and Intangible Assets | |||
Amortization expense | $ 9,400 | $ 9,300 | |
Discontinued Operations, Goodwill and Intangible Assets | |||
2024 (six months remaining) | 9,200 | ||
2025 | 2,100 | ||
2026 | 1,500 | ||
2027 | 1,500 | ||
2028 | 1,500 | ||
Thereafter | 300 | ||
Intangible Assets, Net | $ 16,111 | $ 17,769 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Billions | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
ASU 2014-09 | ||
Revenue Recognition | ||
Passed through costs included in revenue and cost of sales | $ 4.3 | $ 3.6 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition | ||||
Total revenue | $ 3,943.9 | $ 3,490.1 | $ 7,843.8 | $ 6,872.5 |
Americas | ||||
Revenue Recognition | ||||
Total revenue | 3,039.1 | 2,630.3 | 6,077.9 | 5,209.9 |
Europe, Middle East, India, Africa | ||||
Revenue Recognition | ||||
Total revenue | 619.8 | 494.1 | 1,115.2 | 942.1 |
Asia-Australia-Pacific | ||||
Revenue Recognition | ||||
Total revenue | 285 | 365.7 | 650.7 | 720.5 |
Cost reimbursable | ||||
Revenue Recognition | ||||
Total revenue | 1,605.1 | 1,511.3 | 3,222.3 | 3,026.2 |
Guaranteed maximum price | ||||
Revenue Recognition | ||||
Total revenue | 1,420.7 | 1,151 | 2,835.6 | 2,239.2 |
Fixed-price | ||||
Revenue Recognition | ||||
Total revenue | $ 918.1 | $ 827.8 | $ 1,785.9 | $ 1,607.1 |
Revenue Recognition - Performan
Revenue Recognition - Performance obligations (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition | ||
Performance obligation | $ 21,400 | |
Recognized revenue | $ 685.3 | $ 696.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
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]: 2025-01-01 | ||
Revenue Recognition | ||
Performance obligation expected timing of satisfaction period | 2 years |
Revenue Recognition - Accounts
Revenue Recognition - Accounts receivable, net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Sep. 30, 2023 | |
Billed | $ 2,125,400 | $ 2,122,200 |
Contract retentions | 602,800 | 516,500 |
Total accounts receivable-gross | 2,728,200 | 2,638,700 |
Allowance for doubtful accounts and credit losses | (81,500) | (94,200) |
Total accounts receivable-net | $ 2,646,722 | $ 2,544,453 |
Additional disclosures | ||
Unbilled receivables are expected to be billed and collected (in months) | 12 months | 12 months |
Significant claims recorded in contract assets and other non-current assets | $ 170,000 | $ 160,000 |
Trade receivables sold with no financial and legal obligations | $ 291,900 | $ 291,000 |
Outstanding receivables | ||
Additional disclosures | ||
Number of customers accounting for 10% | No | No |
Concentration Risk Threshold Percentage | 10% | 10% |
Joint Ventures and Variable I_3
Joint Ventures and Variable Interest Entities - Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Joint Ventures and Variable Interest Entities | ||||||||
Current assets | $ 6,497,786 | $ 6,497,786 | $ 6,169,511 | |||||
TOTAL ASSETS | 11,457,393 | 11,457,393 | 11,233,398 | |||||
Current liabilities | 6,136,115 | 6,136,115 | 5,850,283 | |||||
TOTAL LIABILITIES | 9,063,038 | 9,063,038 | 8,849,687 | |||||
Total AECOM deficit | 2,198,667 | 2,198,667 | 2,212,332 | |||||
Noncontrolling interests | 195,688 | 195,688 | 171,379 | |||||
TOTAL STOCKHOLDERS' EQUITY | 2,394,355 | $ 2,736,875 | 2,394,355 | $ 2,736,875 | $ 2,428,218 | 2,383,711 | $ 2,692,893 | $ 2,605,379 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 11,457,393 | 11,457,393 | 11,233,398 | |||||
Revenue | 3,943,833 | $ 3,490,172 | 7,843,753 | 6,872,527 | ||||
Consolidated joint ventures | ||||||||
Joint Ventures and Variable Interest Entities | ||||||||
Current assets | 970,000 | 970,000 | 806,300 | |||||
Non-current assets | 84,500 | 84,500 | 75,900 | |||||
TOTAL ASSETS | 1,054,500 | 1,054,500 | 882,200 | |||||
Current liabilities | 878,400 | 878,400 | 779,600 | |||||
Non-current liabilities | 1,500 | 1,500 | 1,500 | |||||
TOTAL LIABILITIES | 879,900 | 879,900 | 781,100 | |||||
Total AECOM deficit | (3,700) | (3,700) | (54,900) | |||||
Noncontrolling interests | 178,300 | 178,300 | 156,000 | |||||
TOTAL STOCKHOLDERS' EQUITY | 174,600 | 174,600 | 101,100 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,054,500 | 1,054,500 | $ 882,200 | |||||
Revenue | $ 1,171,400 | $ 941,700 |
Joint Ventures and Variable I_4
Joint Ventures and Variable Interest Entities - Unconsolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Financial Information | ||||||||
Current assets | $ 6,497,786 | $ 6,497,786 | $ 6,169,511 | |||||
TOTAL ASSETS | 11,457,393 | 11,457,393 | 11,233,398 | |||||
Current liabilities | 6,136,115 | 6,136,115 | 5,850,283 | |||||
TOTAL LIABILITIES | 9,063,038 | 9,063,038 | 8,849,687 | |||||
Joint ventures' equity | 2,394,355 | $ 2,736,875 | 2,394,355 | $ 2,736,875 | $ 2,428,218 | 2,383,711 | $ 2,692,893 | $ 2,605,379 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 11,457,393 | 11,457,393 | 11,233,398 | |||||
AECOM's investment in unconsolidated joint ventures | 137,422 | 137,422 | 139,236 | |||||
Joint ventures summarized financial information | ||||||||
Revenue | 3,943,833 | 3,490,172 | 7,843,753 | 6,872,527 | ||||
Cost of revenue | 3,682,659 | 3,262,078 | 7,338,609 | 6,429,445 | ||||
Gross profit | 261,174 | 228,094 | 505,144 | 443,082 | ||||
Net income | 16,030 | $ 84,483 | 124,624 | 181,246 | ||||
Unconsolidated joint ventures | ||||||||
Financial Information | ||||||||
Current assets | 1,201,800 | 1,201,800 | 1,177,400 | |||||
Non-current assets | 1,052,800 | 1,052,800 | 996,300 | |||||
TOTAL ASSETS | 2,254,600 | 2,254,600 | 2,173,700 | |||||
Current liabilities | 624,700 | 624,700 | 605,900 | |||||
Non-current liabilities | 434,200 | 434,200 | 441,700 | |||||
TOTAL LIABILITIES | 1,058,900 | 1,058,900 | 1,047,600 | |||||
Joint ventures' equity | 1,195,700 | 1,195,700 | 1,126,100 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,254,600 | 2,254,600 | 2,173,700 | |||||
AECOM's investment in unconsolidated joint ventures | $ 137,400 | 137,400 | $ 139,200 | |||||
Joint ventures summarized financial information | ||||||||
Revenue | 696,400 | 642,100 | ||||||
Cost of revenue | 645,900 | 586,900 | ||||||
Gross profit | 50,500 | 55,200 | ||||||
Net income | $ 50,700 | $ 51,900 |
Joint Ventures and Variable I_5
Joint Ventures and Variable Interest Entities - Equity in Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Financial Information | ||||
Equity in earnings (losses) of joint ventures | $ 19,459 | $ 7,456 | $ (9,482) | $ 17,285 |
Unconsolidated joint ventures | ||||
Financial Information | ||||
Equity in earnings (losses) of joint ventures | (9,500) | 17,300 | ||
Unconsolidated joint ventures | Pass-through joint ventures | ||||
Financial Information | ||||
Equity in earnings (losses) of joint ventures | 17,600 | 14,500 | ||
Unconsolidated joint ventures | Other joint ventures | ||||
Financial Information | ||||
Equity in earnings (losses) of joint ventures | $ (27,100) | $ 2,800 |
Pension Benefit Obligations (De
Pension Benefit Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Percentage of Plan Assets: | ||||
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 | Other Nonoperating Income |
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 | Other Nonoperating Income |
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 | Other Nonoperating Income |
United States | ||||
Percentage of Plan Assets: | ||||
Interest cost on projected benefit obligation | $ 2.5 | $ 2.4 | $ 4.9 | $ 4.9 |
Expected return on plan assets | (1.4) | (1.4) | (2.8) | (2.9) |
Amortization of net loss (gain) | 0.7 | 0.8 | 1.5 | 1.7 |
Net periodic benefit cost (credit) | 1.8 | 1.8 | 3.6 | 3.7 |
Change in benefit obligation: | ||||
Employer contributions | 4.4 | |||
Expected remaining scheduled annual employer contributions for the current fiscal year | 8.5 | 8.5 | ||
International | ||||
Percentage of Plan Assets: | ||||
Service costs | 0.1 | 0.1 | 0.2 | |
Interest cost on projected benefit obligation | 10.9 | 11.9 | 21.6 | 23.4 |
Expected return on plan assets | (14.2) | (15.1) | (28.3) | (29.8) |
Amortization of net loss (gain) | (0.6) | (0.2) | (1.2) | (0.3) |
Net periodic benefit cost (credit) | (3.9) | $ (3.3) | (7.8) | $ (6.5) |
Change in benefit obligation: | ||||
Employer contributions | 13.1 | |||
Expected remaining scheduled annual employer contributions for the current fiscal year | $ 12.6 | $ 12.6 |
Debt - Long-term debt (Details)
Debt - Long-term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Debt | ||
Total debt | $ 2,205,900 | $ 2,217,300 |
Less: Current portion of debt and short-term borrowings | (91,500) | (89,500) |
Less: Unamortized debt issuance costs | (12,000) | (14,400) |
Long-term debt | 2,102,358 | 2,113,369 |
Credit Agreement | ||
Debt | ||
Total debt | 1,105,100 | 1,119,800 |
2027 Senior Notes | ||
Debt | ||
Total debt | 997,300 | 997,300 |
Other Debt | ||
Debt | ||
Total debt | $ 103,500 | $ 100,200 |
Debt - Scheduled Maturities (De
Debt - Scheduled Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Debt | ||
2024 (six months remaining) | $ 63.3 | |
2025 | 54.4 | |
2026 | 417.3 | |
2027 | 1,013.7 | |
2028 | 657.2 | |
Total | $ 2,205.9 | $ 2,217.3 |
Debt - Credit Agreement (Detail
Debt - Credit Agreement (Details) | Apr. 19, 2024 USD ($) | Mar. 31, 2024 USD ($) | Sep. 30, 2023 USD ($) | Jun. 25, 2021 USD ($) | Apr. 13, 2021 USD ($) | Feb. 08, 2021 USD ($) |
New Term Loan B Facility | Base Rate | ||||||
Debt agreements | ||||||
Debt Instrument, Floor Rate | 0% | |||||
Interest rate, basis spread (as a percent) | 0.875% | |||||
New Term Loan B Facility | SOFR | ||||||
Debt agreements | ||||||
Debt Instrument, Floor Rate | 0% | |||||
Debt Instrument, Spread Adjustment Rate | 0% | |||||
Interest rate, basis spread (as a percent) | 1.875% | |||||
New Revolving Credit Facility | Other Currency | ||||||
Debt agreements | ||||||
Interest rate, basis spread (as a percent) | 1.25% | |||||
New Revolving Credit Facility | Base Rate | USD | ||||||
Debt agreements | ||||||
Debt Instrument, Floor Rate | 0% | |||||
Interest rate, basis spread (as a percent) | 0.25% | |||||
New Revolving Credit Facility | SOFR | USD | ||||||
Debt agreements | ||||||
Debt Instrument, Floor Rate | 0% | |||||
Debt Instrument, Spread Adjustment Rate | 0.10% | |||||
2014 Credit Agreement | Term loan A | ||||||
Debt agreements | ||||||
Maximum borrowing capacity | $ 215,000,000 | |||||
Credit Agreement | SOFR | USD | ||||||
Debt agreements | ||||||
Interest rate, basis spread (as a percent) | 1.25% | |||||
Credit Agreement | Maximum | ||||||
Debt agreements | ||||||
Consolidated leverage ratio | 4 | |||||
Credit Agreement | New Term Loan B Facility | ||||||
Debt agreements | ||||||
Maximum borrowing capacity | $ 700,000,000 | |||||
Credit Agreement | New Term Loan A Facility | ||||||
Debt agreements | ||||||
Maximum borrowing capacity | 750,000,000 | |||||
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 | |||||
Outstanding letters of credit | $ 4,400,000 | $ 4,400,000 | ||||
Current borrowing capacity | $ 1,145,600,000 | $ 1,145,600,000 | ||||
Credit Agreement | New Revolving Credit Facility | ||||||
Debt agreements | ||||||
Maximum borrowing capacity | $ 1,500,000,000 | |||||
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 | Mar. 31, 2024 |
Debt | ||
Face amount | $ 1,000,000,000 | |
Interest rate (as a percent) | 5.125% | |
Fair value of debt instrument | $ 977,300,000 | |
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 - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Unsecured | ||
Debt | ||
Current borrowing capacity | $ 418.9 | |
Standby Letters of Credit | ||
Debt | ||
Outstanding letters of credit | $ 895.3 | $ 878.9 |
Debt - Effective Interest Rate
Debt - Effective Interest Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Debt | ||||
Effective interest rate including effects of interest rate swap agreements | 5.50% | 5.20% | 5.50% | 5.20% |
Amortization of deferred debt issuance costs | $ 1.2 | $ 1.2 | $ 2.4 | $ 2.4 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Fair Value Measurements - Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 |
Interest Rate Cap | ||||
Derivative financial instruments | ||||
Notional Amount | $ 300 | |||
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% | |||
Spread Rate (as a percent) | 3.465% | |||
Designated as Hedging Instrument | Interest Rate Swap | USD | February 2023 | ||||
Derivative financial instruments | ||||
Notional Amount | $ 400 | $ 400 | ||
Fixed Rate (as a percent) | 1.283% | 1.283% |
Derivative Financial Instrume_4
Derivative Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Sep. 30, 2023 | |
Interest Rate Swap and Interest Rate Cap | Other current assets | ||
Derivative financial instruments | ||
Fair values of the interest rate swap and cap agreements | $ 15.2 | $ 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 | 27.1 | $ 37.5 |
Interest Rate Swap and Interest Rate Cap | Other Noncurrent Liabilities | ||
Derivative financial instruments | ||
Fair values of the interest rate swap and cap agreements | 0.6 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivative financial instruments | ||
Losses recognized in income | $ 0 |
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 | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Other disclosures | |||
Unrecognized compensation expense | $ 78.7 | $ 48.3 | |
Recognition period of unrecognized compensation expense | 3 years | 3 years | |
Restricted Stock Units | |||
Units | |||
Outstanding at beginning (in units) | 0.8 | 1 | 1 |
Granted (in units) | 0.3 | 0.3 | |
Vested (in shares) | (0.3) | (0.4) | |
Outstanding at ending (in units) | 0.8 | 0.9 | 0.8 |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning (in USD per unit) | $ 68.34 | $ 53.05 | $ 53.05 |
Granted (in USD per unit) | 92.32 | 83.64 | |
Vested (in USD per unit) | 49.99 | 44.95 | |
Outstanding at ending (in USD per unit) | $ 83.90 | $ 65.75 | $ 68.34 |
Other disclosures | |||
Compensation expense related to share-based payments | $ 30.6 | $ 24.6 | |
PEP Units | |||
Share-based Payments | |||
Vesting period | 3 years | ||
Units | |||
Outstanding at beginning (in units) | 0.7 | 0.7 | 0.7 |
Granted (in units) | 0.2 | 0.2 | |
PEP units earned (in units) | 0.2 | 0.2 | |
Vested (in shares) | (0.4) | (0.4) | |
Outstanding at ending (in units) | 0.7 | 0.7 | 0.7 |
Weighted Average Grant-Date Fair Value | |||
Outstanding at beginning (in USD per unit) | $ 75.54 | $ 60.60 | $ 60.60 |
Granted (in USD per unit) | 104.82 | 94.65 | |
PEP units earned (in USD per unit) | 52.49 | 43.19 | |
Vested (in USD per unit) | 52.49 | 43.19 | |
Outstanding at ending (in USD per unit) | $ 95.37 | $ 75.53 | $ 75.54 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Taxes | ||
Effective tax rate (as a percent) | 23.40% | 23.10% |
Tax expense related to state income taxes | $ 12.3 | $ 9 |
Tax at federal statutory rate (as a percent) | 21% | 21% |
Tax benefit related to income tax credits and incentives | $ 29.4 | $ 23.6 |
Tax expense related to foreign residual income | 26.2 | $ 19.1 |
Tax expense related to audit settlement | 6.9 | |
Tax expense related to valuation allowances | 6.6 | |
Gross book-tax differences from non-U.S. subsidiaries | $ 1,300 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share | ||||
Denominator for basic earnings per share | 136,006 | 138,927 | 135,952 | 138,807 |
Potential common shares | 700 | 1,400 | 900 | 1,700 |
Denominator for diluted earnings per share | 136,712 | 140,335 | 136,907 | 140,489 |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Operating lease cost | ||||
Operating lease cost | $ 37.7 | $ 41.6 | $ 75.1 | $ 83.1 |
Finance lease cost | ||||
Amortization of right-of-use assets | 7.3 | 5.7 | 14.1 | 10.8 |
Interest on lease liabilities | 0.7 | 0.6 | 1.5 | 1.2 |
Variable lease cost | 8.6 | 8.6 | 17.5 | 16.5 |
Total lease cost | $ 54.3 | $ 56.5 | $ 108.2 | $ 111.6 |
Leases - Additional balance she
Leases - Additional balance sheet information (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Assets: | ||
Operating lease assets | $ 422,850 | $ 447,044 |
Balance Sheet classification of operating lease assets | Operating lease assets | Operating lease assets |
Finance lease assets | $ 69,100 | $ 64,800 |
Balance Sheet classification of finance lease assets | PROPERTY AND EQUIPMENT-NET | PROPERTY AND EQUIPMENT-NET |
Total lease assets | $ 492,000 | $ 511,800 |
Current: | ||
Operating lease liabilities | $ 142,000 | $ 139,800 |
Balance Sheet classification of operating lease liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Finance lease liabilities | $ 27,300 | $ 25,000 |
Balance Sheet classification of finance lease liabilities | Current portion of long-term debt | Current portion of long-term debt |
Total current lease liabilities | $ 169,300 | $ 164,800 |
Non-current: | ||
Operating lease liabilities | $ 507,518 | $ 548,851 |
Balance Sheet classification of operating lease liabilities | Operating lease liabilities | Operating lease liabilities |
Finance lease liabilities | $ 41,300 | $ 39,800 |
Balance Sheet classification of finance lease liabilities | LONG-TERM DEBT | LONG-TERM DEBT |
Total non-current lease liabilities | $ 548,800 | $ 588,700 |
Weighted average remaining lease term (in years): | ||
Operating leases | 6 years 2 months 12 days | 6 years 4 months 24 days |
Finance leases | 2 years 9 months 18 days | 2 years 10 months 24 days |
Weighted average discount rates: | ||
Operating leases | 5% | 4.30% |
Finance leases | 4.30% | 4.10% |
Leases - Additional cash flow i
Leases - Additional cash flow information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 92.7 | $ 94.8 |
Operating cash flows from finance leases | 1.6 | 1.2 |
Financing cash flows from finance leases | 15.1 | 11.3 |
Right-of-use assets obtained in exchange for new operating leases | 38 | 66.4 |
Right-of-use assets obtained in exchange for new finance leases | $ 17.9 | $ 19.6 |
Leases - Lease payments under o
Leases - Lease payments under operating lease (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Amounts payable under non-cancelable operating lease commitments | |
2024 (six months remaining) | $ 89.3 |
2025 | 152.4 |
2026 | 121.3 |
2027 | 92.2 |
2028 | 79.9 |
Thereafter | 223.5 |
Total lease payments | 758.6 |
Less: Amounts representing interest | (109.1) |
Total lease liabilities | $ 649.5 |
Leases - Lease payments under f
Leases - Lease payments under finance lease (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Leases | |
2024 (six months remaining) | $ 15.5 |
2025 | 26.6 |
2026 | 19.4 |
2027 | 10.4 |
2028 | 1.3 |
Total lease payments | 73.2 |
Less: Amounts representing interest | (4.6) |
Total lease liabilities | $ 68.6 |
Other Financial Information (De
Other Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 21, 2024 | Sep. 30, 2023 | |
Accrued expenses and other current liabilities | ||||||
Accrued salaries and benefits | $ 569,600 | $ 569,600 | $ 599,800 | |||
Accrued contract costs | 1,416,700 | 1,416,700 | 1,340,400 | |||
Other accrued expenses | 398,900 | 398,900 | 347,300 | |||
Total | 2,385,201 | 2,385,201 | 2,287,546 | |||
Restructuring costs | 35,465 | $ 3,973 | 51,645 | $ 41,432 | ||
Accrued restructuring expenses | 7,300 | $ 30,700 | 7,300 | 30,700 | ||
Dividend paid per share in cash | $ 0.22 | |||||
Accrued and unpaid dividend | 32,100 | 32,100 | ||||
Personnel and other costs | ||||||
Accrued expenses and other current liabilities | ||||||
Restructuring costs | 38,600 | 39,000 | ||||
Real estate costs | ||||||
Accrued expenses and other current liabilities | ||||||
Restructuring costs | 13,000 | $ 2,400 | ||||
Professional liability accrual | ||||||
Accrued expenses and other current liabilities | ||||||
Accrued contract costs | $ 793,800 | $ 793,800 | $ 809,600 |
Reclassifications out of Accu_3
Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated balances | ||||
Balance at the beginning of the period | $ (926,577) | |||
Balance at the end of the period | $ (909,970) | (909,970) | ||
Pension Related Adjustments | ||||
Accumulated balances | ||||
Balance at the beginning of the period | (235,000) | $ (232,100) | (226,000) | $ (217,300) |
Other comprehensive (loss) income before reclassification | 1,900 | (4,200) | (7,200) | (19,600) |
Amounts reclassified from accumulated other comprehensive income (loss) | 100 | 500 | 200 | 1,100 |
Balance at the end of the period | (233,000) | (235,800) | (233,000) | (235,800) |
Foreign Currency Translation Adjustments | ||||
Accumulated balances | ||||
Balance at the beginning of the period | (679,700) | (721,400) | (739,700) | (799,300) |
Other comprehensive (loss) income before reclassification | (27,000) | 8,500 | 33,000 | 86,400 |
Balance at the end of the period | (706,700) | (712,900) | (706,700) | (712,900) |
Gain/(Loss) on Derivative Instruments | ||||
Accumulated balances | ||||
Balance at the beginning of the period | 24,900 | 35,100 | 39,100 | 36,900 |
Other comprehensive (loss) income before reclassification | 8,300 | (5,600) | (2,300) | (7,400) |
Amounts reclassified from accumulated other comprehensive income (loss) | (3,500) | (1,900) | (7,100) | (1,900) |
Balance at the end of the period | 29,700 | 27,600 | 29,700 | 27,600 |
Accumulated Other Comprehensive Loss | ||||
Accumulated balances | ||||
Balance at the beginning of the period | (889,800) | (918,400) | (926,600) | (979,700) |
Other comprehensive (loss) income before reclassification | (16,800) | (1,300) | 23,500 | 59,400 |
Amounts reclassified from accumulated other comprehensive income (loss) | (3,400) | (1,400) | (6,900) | (800) |
Balance at the end of the period | $ (910,000) | $ (921,100) | $ (910,000) | $ (921,100) |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Sep. 30, 2023 | |
Standby letters of credit | ||
Commitments and Contingencies | ||
Outstanding standby letters of credit | $ 895.3 | $ 878.9 |
Amount available | 418.9 | |
Contingency liability | 899.7 | |
Surety Bond | ||
Commitments and Contingencies | ||
Contingency liability | 4,700 | |
Fund investment capital | ||
Commitments and Contingencies | ||
Commitment | $ 7.1 | |
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 | Mar. 31, 2024 | 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 | Mar. 31, 2024 | |
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 - Summarize
Reportable Segments - Summarized financial information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
Summarized financial information concerning the Company's reportable segments | |||||
Revenue | $ 3,943,833 | $ 3,490,172 | $ 7,843,753 | $ 6,872,527 | |
Gross profit | 261,174 | 228,094 | $ 505,144 | 443,082 | |
Number of reportable segments | segment | 3 | ||||
Equity in earnings of joint ventures | 19,459 | 7,456 | $ (9,482) | 17,285 | |
General and administrative expenses | (44,686) | (34,147) | (80,410) | (69,759) | |
Restructuring costs | (35,465) | (3,973) | (51,645) | (41,432) | |
Operating income (loss) | 200,482 | 197,430 | 363,607 | 349,176 | |
Segment assets | 11,457,393 | 11,457,393 | $ 11,233,398 | ||
Total | |||||
Summarized financial information concerning the Company's reportable segments | |||||
Revenue | 3,943,900 | 3,490,100 | 7,843,800 | 6,872,500 | |
Gross profit | 261,100 | 228,100 | 505,100 | 443,100 | |
Equity in earnings of joint ventures | 19,500 | 7,500 | (9,500) | 17,300 | |
General and administrative expenses | (44,700) | (34,200) | (80,400) | (69,800) | |
Restructuring costs | (35,400) | (3,900) | (51,600) | (41,400) | |
Operating income (loss) | $ 200,500 | $ 197,500 | $ 363,600 | $ 349,200 | |
Gross profit as a % of revenue | 6.60% | 6.50% | 6.40% | 6.40% | |
Operating Segments | Americas | |||||
Summarized financial information concerning the Company's reportable segments | |||||
Revenue | $ 3,038,600 | $ 2,630,200 | $ 6,077,300 | $ 5,209,500 | |
Gross profit | 184,400 | 173,300 | 355,400 | 336,200 | |
Equity in earnings of joint ventures | 4,800 | 4,900 | 8,400 | 5,800 | |
Operating income (loss) | $ 189,200 | $ 178,200 | $ 363,800 | $ 342,000 | |
Gross profit as a % of revenue | 6.10% | 6.60% | 5.80% | 6.50% | |
Segment assets | $ 7,754,400 | $ 7,754,400 | 7,433,100 | ||
Operating Segments | International | |||||
Summarized financial information concerning the Company's reportable segments | |||||
Revenue | 904,800 | $ 859,800 | 1,765,800 | $ 1,662,600 | |
Gross profit | 76,200 | 54,700 | 149,000 | 106,500 | |
Equity in earnings of joint ventures | 5,000 | 5,400 | 9,300 | 8,700 | |
Operating income (loss) | $ 81,200 | $ 60,100 | $ 158,300 | $ 115,200 | |
Gross profit as a % of revenue | 8.40% | 6.40% | 8.40% | 6.40% | |
Segment assets | $ 2,671,400 | $ 2,671,400 | 2,536,200 | ||
Operating Segments | AECOM Capital | |||||
Summarized financial information concerning the Company's reportable segments | |||||
Revenue | 500 | $ 100 | 700 | $ 400 | |
Gross profit | 500 | 100 | 700 | 400 | |
Equity in earnings of joint ventures | 9,700 | (2,800) | (27,200) | 2,800 | |
General and administrative expenses | (9,700) | (2,900) | (12,100) | (5,600) | |
Operating income (loss) | 500 | (5,600) | (38,600) | (2,400) | |
Segment assets | 53,200 | 53,200 | 64,500 | ||
Corporate | |||||
Summarized financial information concerning the Company's reportable segments | |||||
General and administrative expenses | (35,000) | (31,300) | (68,300) | (64,200) | |
Restructuring costs | (35,400) | (3,900) | (51,600) | (41,400) | |
Operating income (loss) | (70,400) | $ (35,200) | (119,900) | $ (105,600) | |
Segment assets | $ 873,300 | $ 873,300 | $ 1,104,400 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 1,007 | $ 76,615 | $ 95,445 | $ 164,560 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |