0001104659-23-057746 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	May 05, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	ACM
Security Exchange Name	NYSE
Entity Common Stock, Shares Outstanding		138,998,785
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Central Index Key	0000868857

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
CURRENT ASSETS:
Cash and cash equivalents	$ 907,510	$ 972,661
Cash in consolidated joint ventures	166,005	199,548
Total cash and cash equivalents	1,073,515	1,172,209
Accounts receivable-net	2,427,913	2,317,812
Contract assets	1,604,593	1,405,299
Prepaid expenses and other current assets	755,049	759,402
Current assets held for sale	110,574	79,000
Income taxes receivable	67,499	89,088
TOTAL CURRENT ASSETS	6,039,143	5,822,810
PROPERTY AND EQUIPMENT-NET	429,815	428,239
DEFERRED TAX ASSETS-NET	292,844	284,154
INVESTMENTS IN UNCONSOLIDATED JOINT VENTURES	387,103	354,983
GOODWILL	3,431,302	3,380,761
INTANGIBLE ASSETS-NET	26,813	35,552
OTHER NON-CURRENT ASSETS	221,356	293,043
OPERATING LEASE RIGHT-OF-USE ASSETS	558,150	539,773
TOTAL ASSETS	11,386,526	11,139,315
CURRENT LIABILITIES:
Short-term debt	4,748	5,032
Accounts payable	2,043,230	2,027,314
Accrued expenses and other current liabilities	2,153,844	2,181,408
Income taxes payable	43,676	46,336
Contract liabilities	1,177,293	1,051,258
Current liabilities held for sale	62,193	49,249
Current portion of long-term debt	52,281	43,574
TOTAL CURRENT LIABILITIES	5,537,265	5,404,171
OTHER LONG-TERM LIABILITIES	118,057	135,795
OPERATING LEASE LIABILITIES, NON-CURRENT	603,127	595,308
LONG-TERM LIABILITIES HELD FOR SALE	275	200
DEFERRED TAX LIABILITY-NET	9,209	9,224
PENSION BENEFIT OBLIGATIONS	229,527	232,552
LONG-TERM DEBT	2,152,191	2,156,686
TOTAL LIABILITIES	8,649,651	8,533,936
COMMITMENTS AND CONTINGENCIES
AECOM STOCKHOLDERS' EQUITY:
Common stock-authorized, 300,000,000 shares of $0.01 par value as of March 31, 2023 and September 30, 2022; issued and outstanding 138,724,105 and 138,933,907 shares as of March 31, 2023 and September 30, 2022, respectively	1,387	1,389
Additional paid-in capital	4,176,931	4,156,594
Accumulated other comprehensive loss	(921,087)	(979,675)
Accumulated deficits	(662,891)	(701,654)
TOTAL AECOM STOCKHOLDERS' EQUITY	2,594,340	2,476,654
Noncontrolling interests	142,535	128,725
TOTAL STOCKHOLDERS' EQUITY	2,736,875	2,605,379
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 11,386,526	$ 11,139,315

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Sep. 30, 2022
Consolidated Balance Sheets
Common stock, authorized shares	300,000,000	300,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, issued shares	138,724,105	138,933,907
Common stock, outstanding shares	138,724,105	138,933,907

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Consolidated Statements of Operations
Revenue	$ 3,490,172	$ 3,213,658	$ 6,872,527	$ 6,480,374
Cost of revenue	3,262,078	3,003,706	6,429,445	6,070,218
Gross profit	228,094	209,952	443,082	410,156
Equity in earnings of joint ventures	7,456	11,919	17,285	19,869
General and administrative expenses	(34,147)	(37,098)	(69,759)	(73,599)
Restructuring costs	(3,973)	(73,292)	(41,432)	(76,663)
Income from operations	197,430	111,481	349,176	279,763
Other income	12,305	3,329	20,175	6,203
Interest expense	(42,372)	(24,173)	(79,072)	(49,556)
Income from continuing operations before taxes	167,363	90,637	290,279	236,410
Income tax expense for continuing operations	41,105	36,011	66,870	58,567
Net income from continuing operations	126,258	54,626	223,409	177,843
Net loss from discontinued operations	(41,775)	(6,113)	(42,163)	(68,053)
Net income	84,483	48,513	181,246	109,790
Net income attributable to noncontrolling interests from continuing operations	(8,089)	(5,592)	(17,733)	(11,048)
Net loss (income) attributable to noncontrolling interests from discontinued operations	221	(1,364)	1,047	4,363
Net income attributable to noncontrolling interests	(7,868)	(6,956)	(16,686)	(6,685)
Net income attributable to AECOM from continuing operations	118,169	49,034	205,676	166,795
Net loss attributable to AECOM from discontinued operations	(41,554)	(7,477)	(41,116)	(63,690)
Net income attributable to AECOM	$ 76,615	$ 41,557	$ 164,560	$ 103,105
Net income (loss) attributable to AECOM per share:
Basic continuing operations per share	$ 0.85	$ 0.35	$ 1.48	$ 1.18
Basic discontinued operations per share	(0.30)	(0.06)	(0.29)	(0.45)
Basic earnings per share	0.55	0.29	1.19	0.73
Diluted continuing operations per share	0.84	0.34	1.46	1.16
Diluted discontinued operations per share	(0.29)	(0.05)	(0.29)	(0.44)
Diluted earnings per share	$ 0.55	$ 0.29	$ 1.17	$ 0.72
Weighted average shares outstanding:
Basic	138,927	141,060	138,807	141,419
Diluted	140,335	142,626	140,489	143,631

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Consolidated Statements of Comprehensive Income
Net income	$ 84,483	$ 48,513	$ 181,246	$ 109,790
Other comprehensive income, net of tax:
Net unrealized (loss) gain on derivatives, net of tax	(7,564)	17,087	(9,381)	20,636
Foreign currency translation adjustments	8,627	9,096	86,751	3,899
Pension adjustments, net of tax	(3,672)	9,030	(18,519)	11,763
Other comprehensive (loss) income, net of tax	(2,609)	35,213	58,851	36,298
Comprehensive income, net of tax	81,874	83,726	240,097	146,088
Noncontrolling interests in comprehensive income of consolidated subsidiaries, net of tax	(7,985)	(7,084)	(16,949)	(6,693)
Comprehensive income attributable to AECOM, net of tax	$ 73,889	$ 76,642	$ 223,148	$ 139,395

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings (Deficits)	Parent	Non-Controlling Interest	Total
BALANCE at Sep. 30, 2021	$ 1,432	$ 4,115,541	$ (900,377)	$ (504,126)	$ 2,712,470	$ 117,107	$ 2,829,577
Increase (Decrease) in Stockholders' Equity
Net income				103,105	103,105	6,685	109,790
Dividends declared				(42,951)	(42,951)		(42,951)
Other comprehensive income (loss)			36,290		36,290	8	36,298
Issuance of stock	19	13,584			13,603		13,603
Repurchases of stock	(44)	(49,939)		(262,811)	(312,794)		(312,794)
Stock-based compensation		21,719			21,719		21,719
Other transactions with noncontrolling interests						(118)	(118)
Contributions from noncontrolling interests						2	2
Distributions to noncontrolling interests						(5,473)	(5,473)
BALANCE at Mar. 31, 2022	1,407	4,100,905	(864,087)	(706,783)	2,531,442	118,211	2,649,653
BALANCE at Dec. 31, 2021	1,413	4,085,333	(899,172)	(676,902)	2,510,672	115,567	2,626,239
Increase (Decrease) in Stockholders' Equity
Net income				41,557	41,557	6,956	48,513
Dividends declared				(21,445)	(21,445)		(21,445)
Other comprehensive income (loss)			35,085		35,085	128	35,213
Issuance of stock		4,154			4,154		4,154
Repurchases of stock	(6)	(487)		(49,993)	(50,486)		(50,486)
Stock-based compensation		11,905			11,905		11,905
Other transactions with noncontrolling interests						35	35
Distributions to noncontrolling interests						(4,475)	(4,475)
BALANCE at Mar. 31, 2022	1,407	4,100,905	(864,087)	(706,783)	2,531,442	118,211	2,649,653
BALANCE at Sep. 30, 2022	1,389	4,156,594	(979,675)	(701,654)	2,476,654	128,725	2,605,379
Increase (Decrease) in Stockholders' Equity
Net income				164,560	164,560	16,686	181,246
Dividends declared				(50,792)	(50,792)		(50,792)
Other comprehensive income (loss)			58,588		58,588	263	58,851
Issuance of stock	11	17,614			17,625		17,625
Repurchases of stock	(13)	(21,872)		(75,005)	(96,890)		(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	1,387	4,176,931	(921,087)	(662,891)	2,594,340	142,535	2,736,875
BALANCE at Dec. 31, 2022	1,390	4,161,716	(918,361)	(689,111)	2,555,634	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 income (loss)			(2,726)		(2,726)	117	(2,609)
Issuance of stock	1	4,388			4,389		4,389
Repurchases of stock	(4)	(1,875)		(25,001)	(26,880)		(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	$ 1,387	$ 4,176,931	$ (921,087)	$ (662,891)	$ 2,594,340	$ 142,535	$ 2,736,875

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 181,246	$ 109,790
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	87,786	85,176
Equity in earnings of unconsolidated joint ventures	(15,545)	(16,519)
Distribution of earnings from unconsolidated joint ventures	27,126	13,407
Non-cash stock compensation	24,595	21,719
Loss on sale of discontinued operations	40,160	45,586
Foreign currency translation	6,768	14,588
Other	2,615	8,059
Changes in operating assets and liabilities:
Accounts receivable and contract assets	(376,005)	139,651
Prepaid expenses and other assets	24,136	67,791
Accounts payable	31,542	(197,252)
Accrued expenses and other current liabilities	(11,683)	74,731
Contract liabilities	126,035	(62,417)
Other long-term liabilities	(17,321)	(111,082)
Net cash provided by operating activities	131,455	193,228
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for sale of discontinued operations, including cash disposed		(43,690)
Investment in unconsolidated joint ventures	(26,127)	(12,335)
Return of investment in unconsolidated joint ventures	6,352	1,731
Proceeds from sale of investments	4,786	8,312
Proceeds from disposal of property and equipment	256	579
Payments for capital expenditures	(68,819)	(48,489)
Net cash used in investing activities	(83,552)	(93,892)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings under credit agreements	1,544,751	1,335,742
Repayments of borrowings under credit agreements	(1,564,820)	(1,363,012)
Cash paid for debt issuance costs		(155)
Dividends paid	(46,217)	(21,198)
Proceeds from issuance of common stock	12,494	12,034
Proceeds from exercise of stock options	4,112
Payments to repurchase common stock	(95,191)	(312,794)
Net distributions to noncontrolling interests	(3,139)	(5,471)
Other financing activities	646	(13,777)
Net cash used in financing activities	(147,364)	(368,631)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	3,548	1,674
NET DECREASE IN CASH AND CASH EQUIVALENTS	(95,913)	(267,621)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	1,176,772	1,234,792
CASH AND CASH EQUIVALENTS AT END OF PERIOD	1,080,859	967,171
LESS CASH AND CASH EQUIVALENTS INCLUDED IN CURRENT ASSETS HELD FOR SALE	(7,344)	(2,101)
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS AT END OF PERIOD	$ 1,073,515	$ 965,070

Basis of Presentation

6 Months Ended

Mar. 31, 2023

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, 2022 (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, 2023 are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2023.

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 and Changes in Accounting

6 Months Ended

Mar. 31, 2023

New Accounting Pronouncements and Changes in Accounting

New Accounting Pronouncements and Changes in Accounting

2. New Accounting Pronouncements and Changes in Accounting

In August 2018, the Financial Accounting Standards Board (FASB) issued new accounting guidance for the disclosure requirements of defined benefit pension plans. The amended guidance eliminates certain disclosure requirements that were no longer considered to be cost beneficial. The Company adopted the new guidance starting on October 1, 2021. The adoption of the new guidance did not have a significant impact on the Company’s financial statements.

In December 2019, the FASB issued new accounting guidance which simplifies the accounting for income taxes. The guidance amends certain exceptions to the general principles of Accounting Standards Codification (ASC) 740, Income Taxes, and simplifies several areas such as accounting for a franchise tax or similar tax that is partially based on income. The Company adopted the new guidance starting on October 1, 2021. The adoption of the new guidance did not have a significant impact on the Company’s consolidated financial statements.

In October 2021, the FASB issued final guidance to companies that apply ASC 606, Revenue from Contracts with Customers, to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. The new guidance creates an exception to the general requirement to measure acquired assets and liabilities at fair value on the acquisition date. Under this exception, an acquirer applies ASC 606 to recognize and measure contract assets and contract liabilities on the acquisition date. The Company adopted the new guidance starting on October 1, 2022 on a prospective basis and the revised guidance will be applied to any business combinations the Company undertakes.

Discontinued Operations, Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2023

Discontinued Operations, Goodwill and Intangible Assets

Discontinued Operations, Goodwill and Intangible Assets

3. Discontinued Operations, Goodwill and Intangible Assets

In the first quarter of fiscal 2020, management approved a plan to dispose of via sale the Company’s self-perform at-risk construction businesses. These businesses include the Company’s civil infrastructure, power, and oil and gas construction businesses that were previously reported in the Company’s Construction Services segment. After consideration of the relevant facts, the Company concluded the assets and liabilities of its self-perform at-risk construction businesses met the criteria for classification as held for sale. The Company concluded the actual and proposed disposal activities represented a strategic shift that would have a major effect on the Company’s operations and financial results and qualified for presentation as discontinued operations in accordance with FASB ASC 205-20. Accordingly, the financial results of the self-perform at-risk construction businesses are presented in the Consolidated Statement of Operations as discontinued operations for all periods presented. Current and non-current assets and liabilities of these businesses not sold as of the balance sheet date are presented in the Consolidated Balance Sheets as assets and liabilities held for sale for both periods presented.

The Company completed the sale of its civil infrastructure construction business to affiliates of Oroco Capital in the second quarter of fiscal 2021. In the first quarter of fiscal 2022, the Company recorded an additional $40.0 million loss primarily related to revisions of estimates for its working capital obligation to be paid and a contingent consideration receivable. In the second quarter of fiscal 2023, the Company recorded a $38.9 million loss related to a revised estimate of its contingent consideration receivable recognized at the sale. Under the terms of the sale agreement, the Company made the required cash payments and delivered the cash and cash equivalents, including cash in consolidated joint ventures, on the balance sheet at closing. As a result, the Company recorded the net cash impact of the sale as a use of cash in the investing section of its statement of cash flows.

On January 28, 2022, the Company completed the sale of its oil and gas construction business to affiliates of Graham Maintenance Services LP for a purchase price of $14 million, subject to cash, debt and working capital adjustments. The Company recorded a pre-tax gain of approximately $3.0 million on the sale, net of transaction costs.

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


	March 31,		September 30,
	2023		2022

Cash and cash equivalents	$	7.3	$	4.6
Receivables and contract assets		103.3		66.2
Other		—		8.2
Current assets held for sale	$	110.6	$	79.0

Property and equipment, net	$	12.5	$	8.0
Write-down of assets to fair value less cost to sell		(12.5)		(8.0)
Non-current assets held for sale	$	—	$	—

Accounts payable and accrued expenses	$	62.2	$	49.2
Current liabilities held for sale	$	62.2	$	49.2

Long-term liabilities held for sale	$	0.3	$	0.2

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,
	2023		2022		2023		2022

Revenue	$	58.8	$	84.7	$	100.5	$	211.8
Cost of revenue		62.1		84.3		102.4		229.6
Gross (loss) profit		(3.3)		0.4		(1.9)		(17.8)
Equity in earnings of joint ventures		—		—		(1.7)		(3.4)
Loss on disposal activities		(40.2)		(3.4)		(40.2)		(45.5)
Transaction costs		—		(3.9)		(0.2)		(6.2)
Loss from operations		(43.5)		(6.9)		(44.0)		(72.9)
Interest expense		—		—		—		(0.1)
Loss before taxes		(43.5)		(6.9)		(44.0)		(73.0)
Income tax benefit		(1.7)		(0.9)		(1.8)		(5.0)
Net loss from discontinuing operations	$	(41.8)	$	(6.0)	$	(42.2)	$	(68.0)

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,
	2023		2022		2023		2022

Payments for capital expenditures	$	0.5	$	(0.6)	$	4.5	$	(1.5)

The changes in the carrying value of goodwill by reportable segment for the six months ended March 31, 2023 were as follows:


			Foreign
	September 30,		Exchange		March 31,
	2022		Impact		2023

	(in millions)
Americas	$	2,610.7	$	4.0	$	2,614.7
International		770.1		46.5		816.6
Total	$	3,380.8	$	50.5	$	3,431.3

The gross amounts and accumulated amortization of the Company’s acquired identifiable intangible assets with finite useful lives as of March 31, 2023 and September 30, 2022, included in intangible assets—net, in the accompanying consolidated balance sheets, were as follows:


	March 31, 2023						September 30, 2022
	Gross		Accumulated		Intangible		Gross		Accumulated		Intangible		Amortization
	Amount		Amortization		Assets, Net		Amount		Amortization		Assets, Net		Period

	(in millions)												(years)
Customer relationships	$	668.2	$	(641.4)	$	26.8	$	663.0	$	(627.4)	$	35.6	1 - 11

Amortization expense of acquired intangible assets included within cost of revenue were $9.3 million and $9.5 million for the six months ended March 31, 2023 and 2022, respectively. The following table presents estimated amortization expense of existing intangible assets for the remainder of fiscal 2023 and for the succeeding years:


Fiscal Year	(in millions)
2023 (six months remaining)	$	9.0
2024		17.2
2025		0.6
Total	$	26.8

Revenue Recognition

6 Months Ended

Mar. 31, 2023

Revenue Recognition

Revenue Recognition

4. Revenue Recognition

The Company follows accounting principles for recognizing revenue upon the transfer of control of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The Company generally recognizes revenues over time as performance obligations are satisfied. The Company generally measures its progress to completion using an input measure of total costs incurred divided by total costs expected to be incurred, which it believes to be the best measure of progress towards completion of the performance obligation. In the course of providing its services, the Company routinely subcontracts for services and incurs other direct costs on behalf of its clients. These costs are passed through to clients and, in accordance with GAAP, are included in the Company’s revenue and cost of revenue. These pass-through revenues for the six months ended March 31, 2023 and 2022 were $3.6 billion and $3.3 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,
	2023		2022		2023		2022

	(in millions)
Cost reimbursable	$	1,511.3	$	1,378.9	$	3,026.2	$	2,686.5
Guaranteed maximum price		1,151.0		1,004.9		2,239.2		2,072.6
Fixed-price		827.8		829.9		1,607.1		1,721.3
Total revenue	$	3,490.1	$	3,213.7	$	6,872.5	$	6,480.4


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2023		2022		2023		2022

	(in millions)
Americas	$	2,630.3	$	2,400.5	$	5,209.9	$	4,864.6
Europe, Middle East, India, Africa		494.1		457.6		942.1		898.5
Asia-Australia-Pacific		365.7		355.6		720.5		717.3
Total revenue	$	3,490.1	$	3,213.7	$	6,872.5	$	6,480.4

As of March 31, 2023, the Company had allocated $22.2 billion of transaction price to unsatisfied or partially satisfied performance obligations, of which approximately 55% is expected to be satisfied within the next twelve months.

Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. The Company recognized revenue of $696.9 million and $458.5 million during the six months ended March 31, 2023 and 2022, respectively, that was included in contract liabilities as of September 30, 2022 and 2021, respectively.

The Company’s timing of revenue recognition may not be consistent with its rights to bill and collect cash from its clients. Those rights are generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of work or when services are performed. The Company’s accounts receivables represent amounts billed to clients that have yet to be collected and represent an unconditional right to cash from its clients. Contract assets represent the amount of contract revenue recognized but not yet billed pursuant to contract terms or accounts billed after the balance sheet date. Contract liabilities represent billings as of the balance sheet date, as allowed under the terms of a contract, but not yet recognized as contract revenue pursuant to the Company’s revenue recognition policy.

Net accounts receivable consisted of the following:


	March 31,		September 30,
	2023		2022

	(in millions)
Billed	$	2,040.1	$	1,931.4
Contract retentions		464.1		490.4
Total accounts receivable—gross		2,504.2		2,421.8
Allowance for doubtful accounts and credit losses		(76.3)		(104.0)
Total accounts receivable—net	$	2,427.9	$	2,317.8

Substantially all contract assets as of March 31, 2023 and September 30, 2022 are expected to be billed and collected within twelve months, except for claims. Significant claims recorded in contract assets and other non-current assets were approximately $140 million as of March 31, 2023 and $110 million as of September 30, 2022. 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, 2023 and September 30, 2022.

The Company sold trade receivables to financial institutions, of which $256.2 million and $240.3 million were outstanding as of March 31, 2023 and September 30, 2022, respectively. The Company does not retain financial or legal obligations for these receivables that would result in material losses. The Company’s ongoing involvement is limited to the remittance of customer payments to the financial institutions with respect to the sold trade receivables.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

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+ Details

Joint Ventures and Variable Interest Entities

6 Months Ended

Mar. 31, 2023

Joint Ventures and Variable Interest Entities

Joint Ventures and Variable Interest Entities

5. Joint Ventures and Variable Interest Entities

The Company’s joint ventures provide architecture, engineering, program management, construction management, operations and maintenance services, and invest in real estate projects. Joint ventures, the combination of two or more partners, are generally formed for a specific project. Management of the joint venture is typically controlled by a joint venture executive committee, comprised of representatives from the joint venture partners. The joint venture executive committee normally provides management oversight and controls decisions which could have a significant impact on the joint venture.

Some of the Company’s joint ventures have no employees and minimal operating expenses. For these joint ventures, the Company’s employees perform work for the joint venture, which is then billed to a third-party customer by the joint venture. These joint ventures function as pass-through entities to bill the third-party customer. For consolidated joint ventures of this type, the Company records the entire amount of the services performed and the costs associated with these services, including the services provided by the other joint venture partners, in the Company’s result of operations. For certain of these joint ventures where a fee is added by an unconsolidated joint venture to client billings, the Company’s portion of that fee is recorded in equity in earnings of joint ventures.

The Company also has joint ventures that have their own employees and operating expenses, and to which the Company generally makes a capital contribution. The Company accounts for these joint ventures either as consolidated entities or equity method investments based on the criteria further discussed below.

The Company follows guidance on the consolidation of variable interest entities (VIEs) that requires companies to utilize a qualitative approach to determine whether it is the primary beneficiary of a VIE. The process for identifying the primary beneficiary of a VIE requires consideration of the factors that indicate a party has the power to direct the activities that most significantly impact the joint venture’s economic performance, including powers granted to the joint venture’s program manager, powers contained in the joint venture governing board and, to a certain extent, a company’s economic interest in the joint venture. The Company analyzes its joint ventures and classifies them as either:

●

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

●

a VIE that does not require consolidation and is treated as an equity method investment because the Company is not the primary beneficiary or the joint venture is not a VIE and the Company does not hold the majority voting interest.

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

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

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


	March 31,
	2023		September 30,
	(unaudited)		2022

	(in millions)
Current assets	$	721.1	$	630.8
Non-current assets		74.1		73.8
Total assets	$	795.2	$	704.6

Current liabilities	$	642.5	$	530.6
Non-current liabilities		1.5		1.5
Total liabilities		644.0		532.1
Total AECOM equity		21.1		56.7
Noncontrolling interests		130.1		115.8
Total owners’ equity		151.2		172.5
Total liabilities and owners’ equity	$	795.2	$	704.6

Total revenue of the consolidated joint ventures was $941.7 million and $627.3 million for the six months ended March 31, 2023 and 2022, respectively. The assets of the Company’s consolidated joint ventures are restricted for use only by the particular joint venture and are not available for the general operations of the Company.

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


	March 31,		September 30,
	2023		2022

	(in millions)
Current assets	$	1,130.7	$	1,279.4
Non-current assets		1,158.2		1,128.7
Total assets	$	2,288.9	$	2,408.1

Current liabilities	$	581.1	$	751.4
Non-current liabilities		521.8		521.3
Total liabilities		1,102.9		1,272.7
Joint ventures’ equity		1,186.0		1,135.4
Total liabilities and joint ventures’ equity	$	2,288.9	$	2,408.1

AECOM’s investment in unconsolidated joint ventures	$	387.1	$	355.0


	Six Months Ended
	March 31,		March 31,
	2023		2022

	(in millions)
Revenue	$	642.1	$	925.1
Cost of revenue		586.9		888.1
Gross profit	$	55.2	$	37.0
Net income	$	51.9	$	34.0

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


	Six Months Ended
	March 31,		March 31,
	2023		2022

	(in millions)
Pass-through joint ventures	$	14.5	$	15.7
Other joint ventures		2.8		4.2
Total	$	17.3	$	19.9

Pension Benefit Obligations

6 Months Ended

Mar. 31, 2023

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, 2023 and 2022:


	Three Months Ended								Six Months Ended
	March 31, 2023				March 31, 2022				March 31, 2023				March 31, 2022
	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	$	—	$	0.2
Interest cost on projected benefit obligation		2.4		11.9		1.1		6.3		4.9		23.4		2.3		12.7
Expected return on plan assets		(1.4)		(15.1)		(1.4)		(10.8)		(2.9)		(29.8)		(2.8)		(21.8)
Amortization of net loss (gain)		0.8		(0.2)		1.4		1.8		1.7		(0.3)		2.8		3.7
Settlement loss recognized		—		—		0.2		—		—		—		0.2		—
Net periodic benefit cost (credit)	$	1.8	$	(3.3)	$	1.3	$	(2.6)	$	3.7	$	(6.5)	$	2.5	$	(5.2)

The total amounts of employer contributions paid for the six months ended March 31, 2023 were $4.0 million for U.S. plans and $12.6 million for non-U.S. plans. The expected remaining scheduled annual employer contributions for the fiscal year ending September 30, 2023 are $4.8 million for U.S. plans and $11.1 million for non-U.S. plans.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI https://asc.fasb.org/extlink&oid=123450688&loc=d3e4179-114921

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+ Details

Debt

6 Months Ended

Mar. 31, 2023

Debt

Debt

7. Debt

Debt consisted of the following:


	March 31,		September 30,
	2023		2022

	(in millions)
Credit Agreement	$	1,134.4	$	1,143.3
2027 Senior Notes		997.3		997.3
Other debt		94.4		84.0
Total debt		2,226.1		2,224.6
Less: Current portion of debt and short-term borrowings		(57.0)		(48.6)
Less: Unamortized debt issuance costs		(16.9)		(19.3)
Long-term debt	$	2,152.2	$	2,156.7

The following table presents, in millions, scheduled maturities of the Company’s debt as of March 31, 2023:


Fiscal Year
2023 (six months remaining)	$	32.2
2024		78.7
2025		45.4
2026		408.1
2027		1,005.7
Thereafter		656.0
Total	$	2,226.1

Credit Agreement

On February 8, 2021, the Company entered into the 2021 Refinancing Amendment to the Credit Agreement (the “Credit Agreement”), pursuant to which the Company amended and restated its Syndicated Credit Facility Agreement, dated as of October 17, 2014 (as amended prior to February 8, 2021, the “Original Credit Agreement”), between the Company, as borrower, Bank of America, N.A., as administrative agent, and other parties thereto. At the time of amendment, the Credit Agreement consisted of a $1,150,000,000 revolving credit facility (the “Revolving Credit Facility”) and a $246,968,737.50 term loan A facility (the “Term A Facility,” together with the Revolving Credit Facility, the “Credit Facilities”), each of which mature on February 8, 2026. The outstanding loans under the Term A Facility were borrowed in U.S. dollars. Loans under the Revolving Credit Facility may be borrowed, and letters of credit thereunder may be issued, in U.S. dollars or in certain foreign currencies. The proceeds of the Revolving Credit Facility may be used from time to time for ongoing working capital and for other general corporate purposes. The proceeds of the Revolving Credit Facility and the Term A Loan facility borrowed on February 8, 2021 were used to refinance the existing revolving credit facility and the existing term loan facility under the Original Credit Agreement and to pay related fees and expenses. The Credit Agreement permits the Company to designate certain of its subsidiaries as additional co-borrowers from time to time. Currently, there are no co-borrowers under the Credit Facilities.

The applicable interest rate under the Credit Agreement is calculated at a per annum rate equal to, at the Company’s option, (a) the Eurocurrency Rate (as defined in the Credit Agreement) plus an applicable margin (the “LIBOR Applicable Margin”), which is currently at 1.2250% or (b) the Base Rate (as defined in the Credit Agreement) plus an applicable margin (the “Base Rate Applicable Margin” and together with the LIBOR Applicable Margin, the “Applicable Margins”), which is currently at 0.2250%. The Credit Agreement includes certain environmental, social and governance (ESG) metrics relating to the Company’s CO² emissions and its percentage of employees who identify as women (each, a “Sustainability Metric”). The Applicable Margins and the commitment fees for the Revolving Credit Facility will be adjusted on an annual basis based on the Company’s achievement of preset thresholds for each Sustainability Metric. The Credit Agreement contains provisions addressing the end of the use of LIBOR as a benchmark rate of interest and a mechanism for determining an alternative benchmark rate of interest. When the provisions are triggered, LIBOR would be replaced by a secured overnight financing rate (SOFR)-based rate, which will be subject to a spread adjustment.

Some of the Company’s material subsidiaries (the “Guarantors”) have guaranteed the Company’s obligations of the borrowers under the Credit Agreement, subject to certain exceptions. The borrowers’ obligations under the Credit Agreement are secured by a lien on substantially all of the Company’s assets and its Guarantors’ assets, subject to certain exceptions.

The Credit Agreement contains customary negative covenants that include, among other things, limitations on the ability of the Company and certain of its subsidiaries, subject to certain exceptions, to incur liens and debt, make investments, dispositions, and restricted payments, change the nature of their business, consummate mergers, consolidations and the sale of all or substantially all of their respective assets, taken as a whole, and transact with affiliates. The Company is also required to maintain a consolidated interest coverage ratio of at least 3.00 to 1.00 and a consolidated leverage ratio of less than or equal to 4.00 to 1.00 (subject to certain adjustments in connection with permitted acquisitions), tested on a quarterly basis (the “Financial Covenants”). The Company’s consolidated leverage ratio was 2.20 to 1.00 at March 31, 2023. As of March 31, 2023, the Company was in compliance with the covenants of the Credit Agreement.

The Credit Agreement contains customary affirmative covenants, including, among other things, compliance with applicable law, preservation of existence, maintenance of properties and of insurance, and keeping proper books and records. The Credit Agreement contains customary events of default, including, among other things, nonpayment of principal, interest or fees, cross-defaults to other debt, inaccuracies of representations and warranties, failure to perform covenants, events of bankruptcy and insolvency, change of control and unsatisfied judgments, subject in certain cases to notice and cure periods and other exceptions.

On April 13, 2021, the Company entered into Amendment No. 10 to the Credit Agreement, pursuant to which the lenders thereunder provided a secured term “B” credit facility (the “Term B Facility”) to the Company in an aggregate principal amount of $700,000,000. The Term B Facility matures on April 13, 2028. The proceeds of the Term B Facility were used to fund the purchase price, fees and expenses in connection with the Company’s cash tender offer to purchase up to $700,000,000 aggregate purchase price (not including any accrued and unpaid interest) of its outstanding 5.875% Senior Notes due 2024.

The Term B Facility is subject to the same affirmative and negative covenants and events of default as the Term A Facility previously incurred pursuant to the existing Credit Agreement (except that the Financial Covenants in the Credit Agreement do not apply to the Term B Facility). The applicable interest rate for the Term B Facility is calculated at a per annum rate equal to, at the Company’s option, (a) the Eurocurrency Rate (as defined in the Credit Agreement) plus 1.75% or (b) the Base Rate (as defined in the Credit Agreement) plus 0.75%.

On June 25, 2021, the Company entered into Amendment No. 11 to the Credit Agreement, pursuant to which lenders thereunder have provided the Company an additional $215,000,000 in aggregate principal amount under the Term A Facility. The Company used the net proceeds from the increase in the Term A Facility (together with cash on hand), to (i) redeem all of the Company’s remaining 5.875% Senior Notes due 2024 and (ii) pay fees and expenses related to such redemption.

At March 31, 2023 and September 30, 2022, letters of credit totaled $4.4 million and $4.4 million, respectively, under the Company’s Revolving Credit Facility. As of March 31, 2023 and September 30, 2022, the Company had $1,145.6 million and $1,145.6 million, respectively, available under its 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, 2023, the estimated fair value of the 2027 Senior Notes was approximately $972.4 million. The fair value of the 2027 Senior Notes as of March 31, 2023 was derived by taking the mid-point of the trading prices from an observable market input (Level 2) in the secondary bond market and multiplying it by the outstanding balance of the 2027 Senior Notes. Interest is payable on the 2027 Senior Notes at a rate of 5.125% per annum. Interest on the 2027 Senior Notes is payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2017. The 2027 Senior Notes will mature on March 15, 2027.

At any time and from time to time prior to December 15, 2026, the Company may redeem all or part of the 2027 Senior Notes, at a redemption price equal to 100% of their principal amount, plus a “make whole” premium as of the redemption date, and accrued and unpaid interest to the redemption date. On or after December 15, 2026, the Company may redeem all or part of the 2027 Senior Notes at a redemption price equal to 100% of their principal amount, plus accrued and unpaid interest on the redemption date.

The indenture pursuant to which the 2027 Senior Notes were issued contains customary events of default, including, among other things, payment default, exchange default, failure to provide notices thereunder and provisions related to bankruptcy events. The indenture also contains customary negative covenants.

The Company was in compliance with the covenants relating to the 2027 Senior Notes as of March 31, 2023.

Other Debt and Other Items

Other debt consists primarily of obligations under capital leases and loans, and unsecured credit facilities. The Company’s unsecured credit facilities are primarily used for standby letters of credit issued in connection with general and professional liability insurance programs and for contract performance guarantees. At March 31, 2023 and September 30, 2022, these outstanding standby letters of credit totaled $860.5 million and $640.3 million, respectively. As of March 31, 2023, the Company had $441.6 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, 2023 and 2022 was 5.2% and 3.3%, 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, 2023 of $1.2 million and $2.4 million, respectively, and for the three and six months ended March 31, 2022 of $1.2 million and $2.5 million, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Subparagraph (h)
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Derivative Financial Instruments and Fair Value Measurements

6 Months Ended

Mar. 31, 2023

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.

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, 2023
Notional Amount	Notional Amount	Fixed	Effective	Expiration
Currency	(in millions)	Rate	Date	Date
USD	400.0	1.349%	February 2023	March 2028


September 30, 2022
Notional Amount	Notional Amount	Fixed	Effective	Expiration
Currency	(in millions)	Rate	Date	Date
USD	200.0	2.60%	March 2018	February 2023
USD	400.0	1.349%	February 2023	March 2028

In the fourth quarter of fiscal 2021, the Company entered into new interest rate swap agreements with a notional value of $400.0 million to manage the interest rate exposure of its variable rate loans. The new swaps became effective February 2023 and terminate in March 2028. By entering into the swap agreements, the Company converted a portion of the LIBOR rate-based liability into a fixed rate liability. The Company will pay a fixed rate of 1.349% and receive payment at the prevailing one-month LIBOR.

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 LIBOR. In the event one-month LIBOR exceeds 3.5%, the Company will pay a fixed rate of 3.5% and receive payment at the prevailing one-month LIBOR.

The interest rate swap agreements and the interest rate cap agreements contain provisions that address the use of LIBOR as a benchmark rate. Consistent with the Company’s variable rate loans, the provisions provide for a replacement of LIBOR to a SOFR-based rate.

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, 2023 and 2022.

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 current liabilities on March 31, 2023 and were $14.3 million, $25.8 million, and $1.9 million, respectively. The fair values of the interest rate swap and interest rate cap agreements included in other current assets and other non-current assets on September 30, 2022 were $9.4 million and $41.8 million, respectively. The fair values of the interest rate swap and interest rate cap agreements were derived by taking the net present value of the expected cash flows using observable market inputs (Level 2) such as LIBOR or 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, 2023 and 2022. Additionally, there were no material losses recognized in income due to amounts excluded from effectiveness testing from the Company’s interest rate swap agreements.

Share-Based Payments

6 Months Ended

Mar. 31, 2023

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:


	2023						2022
		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,	1.0	$	53.05	0.7	$	60.60	1.3	$	38.88	1.2	$	37.22
Granted	0.3	$	83.64	0.2	$	94.65	0.3	$	74.32	0.2	$	85.48
PEP units earned	—	$	—	0.2	$	43.19	—	$	—	0.6	$	27.90
Vested	(0.4)	$	44.95	(0.4)	$	43.19	(0.5)	$	29.36	(1.3)	$	27.89
Outstanding at March 31,	0.9	$	65.75	0.7	$	75.53	1.1	$	53.02	0.7	$	60.64

Total compensation expense related to these share-based payments including stock options was $24.6 million and $21.7 million during the six months ended March 31, 2023 and 2022, respectively. Unrecognized compensation expense related to total share-based payments outstanding as of March 31, 2023 and September 30, 2022 was $64.2 million and $45.9 million, respectively, to be recognized on a straight-line basis over the awards’ respective vesting periods which are generally three years.

Income Taxes

6 Months Ended

Mar. 31, 2023

Income Taxes

Income Taxes

10. Income Taxes

The Company’s effective tax rate was 23.1% and 24.8% for the six months ended March 31, 2023 and 2022, 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, 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. These items are expected to have a continuing impact on the effective tax rate for the remainder of the fiscal year.

The most significant items contributing to the difference between the statutory U.S. federal corporate tax rate of 21.0% and the Company’s effective tax rate for the six-month period ended March 31, 2022 were a tax benefit of $26.5 million related to income tax credits and incentives, tax expense of $19.5 million related to foreign residual income, a tax benefit of $13.9 million related to changes in valuation allowances, tax expense of $14.9 million primarily related to changes in foreign uncertain tax positions, and tax expense of $11.1 million related to state income taxes.

During the six-month period ended March 31, 2022, valuation allowances in the amount of $21.9 million primarily related to net operating losses in certain foreign entities were released due to sufficient positive evidence. The positive evidence included a realignment of the Company’s global transfer pricing methodology which resulted in forecasting the utilization of the net operating losses within the foreseeable future.

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. and believes the outcomes which are reasonably possible within the next twelve months, including lapses in statutes of limitations, could result in future adjustments, but will not result in a material change in the liability for uncertain tax positions.

Generally, the Company does not provide for U.S. taxes or foreign withholding taxes on gross book-tax differences in its non-U.S. subsidiaries because such basis differences of approximately $1.3 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
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-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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+ Details

Earnings Per Share

6 Months Ended

Mar. 31, 2023

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, 2023 and 2022, 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,
	2023	2022	2023	2022

	(in millions)
Denominator for basic earnings per share	138.9	141.1	138.8	141.4
Potential common shares	1.4	1.5	1.7	2.2
Denominator for diluted earnings per share	140.3	142.6	140.5	143.6

Leases

6 Months Ended

Mar. 31, 2023

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, 2023		March 31, 2022		March 31, 2023		March 31, 2022

	(in millions)
Operating lease cost	$	41.6	$	43.7	$	83.1	$	87.8
Finance lease cost:
Amortization of right-of-use assets		5.7		4.6		10.8		8.7
Interest on lease liabilities		0.6		0.6		1.2		1.1
Variable lease cost		8.6		8.3		16.5		16.4
Total lease cost	$	56.5	$	57.2	$	111.6	$	114.0

Additional balance sheet information related to leases is as follows:


		As of		As of
(in millions except as noted)	Balance Sheet Classification	March 31, 2023		September 30, 2022
Assets:
Operating lease assets	Operating lease right-of-use assets	$	558.1	$	539.8
Finance lease assets	Property and equipment – net		59.4		49.4
Total lease assets		$	617.5	$	589.2

Liabilities:
Current:
Operating lease liabilities	Accrued expenses and other current liabilities	$	147.7	$	145.6
Finance lease liabilities	Current portion of long-term debt		21.9		18.1
Total current lease liabilities			169.6		163.7
Non-current:
Operating lease liabilities	Operating lease liabilities, noncurrent		603.1		595.3
Finance lease liabilities	Long-term debt		37.8		32.0
Total non-current lease liabilities		$	640.9	$	627.3


	As of		As of
	March 31, 2023		September 30, 2022
Weighted average remaining lease term (in years):
Operating leases	6.6		6.5
Finance leases	3.0		3.1
Weighted average discount rates:
Operating leases	4.2	%	4.0	%
Finance leases	3.9	%	3.8	%

Additional cash flow information related to leases is as follows:


	Six Months Ended
	March 31,		March 31,
	2023		2022

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	94.8	$	102.7
Operating cash flows from finance leases		1.2		1.1
Financing cash flows from finance leases		11.3		9.7
Right-of-use assets obtained in exchange for new operating leases		66.4		31.9
Right-of-use assets obtained in exchange for new finance leases		19.6		18.4

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


	Operating Leases		Finance Leases

Fiscal Year	(in millions)
2023 (six months remaining)	$	90.4	$	11.9
2024		164.3		22.6
2025		137.9		16.8
2026		110.0		9.7
2027		83.3		2.3
Thereafter		278.5		0.1
Total lease payments	$	864.4	$	63.4
Less: Amounts representing interest	$	(113.6)	$	(3.7)
Total lease liabilities	$	750.8	$	59.7

Other Financial Information

6 Months Ended

Mar. 31, 2023

Other Financial Information

Other Financial Information

13. Other Financial Information

Accrued expenses and other current liabilities consist of the following:


	March 31,		September 30,
	2023		2022

	(in millions)
Accrued salaries and benefits	$	556.9	$	602.2
Accrued contract costs		1,267.6		1,246.0
Other accrued expenses		329.3		333.2
Total	$	2,153.8	$	2,181.4

Accrued contract costs above include balances related to professional liability accruals of $707.7 million and $713.6 million as of March 31, 2023 and September 30, 2022, respectively. The remaining accrued contract costs primarily relate to costs for services provided by subcontractors and other non-employees. Liabilities recorded related to accrued contract losses were not material as of March 31, 2023 and September 30, 2022. 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, 2023 and 2022. 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. During the first half of fiscal 2022, the Company incurred restructuring expenses of $76.7 million, of which $69.1 million was related to the exit of our Russia-related businesses. The remaining $7.6 million related to actions to improve margins and deliver efficiencies. These expenses included personnel and other costs of $5.4 million and real estate costs of $2.2 million, of which $0.6 million was accrued and unpaid at March 31, 2022.

On March 1, 2023, the Company’s Board of Directors declared a quarterly cash dividend of $0.18 per share, which was paid on April 21, 2023 to stockholders of record as of April 5, 2023. As of March 31, 2023, accrued and unpaid dividends totaled $26.5 million and were classified within other accrued expenses on the consolidated balance sheet.

Reclassifications out of Accumulated Other Comprehensive Loss

6 Months Ended

Mar. 31, 2023

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, 2023 and 2022 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, 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		(Loss)/Gain on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at December 31, 2021	$	(313.4)	$	(585.3)	$	(0.5)	$	(899.2)
Other comprehensive income (loss) before reclassification		6.5		(10.4)		16.1		12.2
Amounts reclassified from accumulated other comprehensive loss		2.5		19.5		0.9		22.9
Balances at March 31, 2022	$	(304.4)	$	(576.2)	$	16.5	$	(864.1)


			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)


			Foreign				Accumulated
	Pension		Currency		(Loss)/Gain on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at September 30, 2021	$	(316.2)	$	(580.1)	$	(4.1)	$	(900.4)
Other comprehensive income (loss) before reclassification		6.8		(15.6)		18.8		10.0
Amounts reclassified from accumulated other comprehensive loss		5.0		19.5		1.8		26.3
Balances at March 31, 2022	$	(304.4)	$	(576.2)	$	16.5	$	(864.1)

Commitments and Contingencies

6 Months Ended

Mar. 31, 2023

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, 2023 and September 30, 2022, these outstanding standby letters of credit totaled $860.5 million and $640.3 million, respectively. As of March 31, 2023, the Company had $441.6 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, 2023, the Company was contingently liable in the amount of approximately $864.9 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, 2023, the Company has capital commitments of $10.9 million to the Fund over the next 6 years.

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

Department of Energy Deactivation, Demolition, and Removal Project

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

Due to unanticipated requirements and permitting delays by federal and state agencies, as well as delays and related ground stabilization activities caused by Hurricane Irene in 2011, the Former Affiliate was required to perform work outside the scope of the Task Order Modification. In December 2014, the Former Affiliate submitted an initial set of claims against the DOE pursuant to the Contracts Disputes Acts seeking recovery of $103 million, including additional fees on changed work scope (the “2014 Claims”). On December 6, 2019, the Former Affiliate submitted a second set of claims against the DOE seeking recovery of an additional $60.4 million, including additional project costs and delays outside the scope of the contract as a result of differing site and ground conditions (the “2019 Claims”). The Former Affiliate also submitted three alternative breach of contract claims to the 2014 and 2019 Claims that may entitle the Former Affiliate to recovery of $148.5 million to $329.4 million. On December 30, 2019, the DOE denied the Former Affiliate’s 2014 Claims. On September 25, 2020, the DOE denied the Former Affiliate’s 2019 Claims. The Company filed an appeal of these decisions on December 20, 2020 in the Court of Federal Claims. Deconstruction, decommissioning and site restoration activities are complete.

On January 31, 2020, the Company completed the sale of its Management Services business, including the Former Affiliate who worked on the DOE project, to Maverick Purchaser Sub LLC (MS Purchaser), an affiliate of American Securities LLC and Lindsay Goldberg LLC. The Company and the MS Purchaser agreed that all future DOE project claim recoveries and costs will be split 10% to the MS Purchaser and 90% to the Company with the Company retaining control of all future strategic legal decisions.

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

New York Department of Environmental Conservation

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

Refinery Turnaround Project

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

On January 31, 2020, the Company completed the sale of its Management Services business, including the Former Affiliate, to the MS Purchaser; however, the Refinery Turnaround Project, including related claims and liabilities, has been retained by the Company.

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

Reportable Segments

6 Months Ended

Mar. 31, 2023

Reportable Segments

Reportable Segments

16. Reportable Segments

The Company’s reportable segments are presented according to their geographic regions and business activities. The Americas segment provides planning, consulting, architectural and engineering design services, and construction management services to commercial and government clients in the United States, Canada, and Latin America, while the International segment provides similar professional services to commercial and government clients in Europe, the Middle East, India, Africa, and the Asia-Australia-Pacific regions.

The Company’s AECOM Capital (ACAP) segment primarily invests in and develops real estate projects. These reportable segments are organized by the differing specialized needs of the respective clients, and how the Company manages its business. The Company has aggregated various operating segments into its reportable segments based on their similar characteristics, including similar long-term financial performance, the nature of services provided, internal processes for delivering those services, and types of customers.

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, 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		178.2			60.1			(5.6)		(35.2)		197.5
Gross profit as a % of revenue		6.6	%		6.4	%		—		—		6.5	%

Three Months Ended March 31, 2022:
Revenue	$	2,399.9		$	813.3		$	0.5	$	—	$	3,213.7
Gross profit		160.4			49.1			0.5		—		210.0
Equity in earnings of joint ventures		3.2			5.7			3.1		—		12.0
General and administrative expenses		—			—			(2.6)		(34.6)		(37.2)
Restructuring costs		—			—			—		(73.3)		(73.3)
Operating income		163.6			54.8			1.0		(107.9)		111.5
Gross profit as a % of revenue		6.7	%		6.0	%		—		—		6.5	%

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	%

Six Months Ended March 31, 2022:
Revenue	$	4,863.4		$	1,615.7		$	1.3	$	—	$	6,480.4
Gross profit		310.4			98.5			1.3		—		410.2
Equity in earnings of joint ventures		6.4			9.3			4.2		—		19.9
General and administrative expenses		—			—			(5.6)		(68.0)		(73.6)
Restructuring costs		—			—			—		(76.7)		(76.7)
Operating income (loss)		316.8			107.8			(0.1)		(144.7)		279.8
Gross profit as a % of revenue		6.4	%		6.1	%		—		—		6.3	%


Reportable Segments:

Total assets
March 31, 2023	$	7,290.3	$	2,659.0	$	305.8	$	1,020.8
September 30, 2022	$	7,232.2	$	2,467.9	$	264.9	$	1,095.3

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Discontinued Operations, Goodwill and Intangible Assets (Tables)

6 Months Ended

Mar. 31, 2023

Discontinued Operations, Goodwill and Intangible Assets.

Schedule of balance sheet and income statement information of discontinued operations and significant components included in consolidated statement of cash flows

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


	March 31,		September 30,
	2023		2022

Cash and cash equivalents	$	7.3	$	4.6
Receivables and contract assets		103.3		66.2
Other		—		8.2
Current assets held for sale	$	110.6	$	79.0

Property and equipment, net	$	12.5	$	8.0
Write-down of assets to fair value less cost to sell		(12.5)		(8.0)
Non-current assets held for sale	$	—	$	—

Accounts payable and accrued expenses	$	62.2	$	49.2
Current liabilities held for sale	$	62.2	$	49.2

Long-term liabilities held for sale	$	0.3	$	0.2

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,
	2023		2022		2023		2022

Revenue	$	58.8	$	84.7	$	100.5	$	211.8
Cost of revenue		62.1		84.3		102.4		229.6
Gross (loss) profit		(3.3)		0.4		(1.9)		(17.8)
Equity in earnings of joint ventures		—		—		(1.7)		(3.4)
Loss on disposal activities		(40.2)		(3.4)		(40.2)		(45.5)
Transaction costs		—		(3.9)		(0.2)		(6.2)
Loss from operations		(43.5)		(6.9)		(44.0)		(72.9)
Interest expense		—		—		—		(0.1)
Loss before taxes		(43.5)		(6.9)		(44.0)		(73.0)
Income tax benefit		(1.7)		(0.9)		(1.8)		(5.0)
Net loss from discontinuing operations	$	(41.8)	$	(6.0)	$	(42.2)	$	(68.0)

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,
	2023		2022		2023		2022

Payments for capital expenditures	$	0.5	$	(0.6)	$	4.5	$	(1.5)

Schedule of changes in the carrying value of goodwill by reportable segment


			Foreign
	September 30,		Exchange		March 31,
	2022		Impact		2023

	(in millions)
Americas	$	2,610.7	$	4.0	$	2,614.7
International		770.1		46.5		816.6
Total	$	3,380.8	$	50.5	$	3,431.3

Schedule of gross amounts and accumulated amortization of finite intangible assets included in intangible assets


	March 31, 2023						September 30, 2022
	Gross		Accumulated		Intangible		Gross		Accumulated		Intangible		Amortization
	Amount		Amortization		Assets, Net		Amount		Amortization		Assets, Net		Period

	(in millions)												(years)
Customer relationships	$	668.2	$	(641.4)	$	26.8	$	663.0	$	(627.4)	$	35.6	1 - 11

Schedule of estimated future amortization expense of intangible assets


Fiscal Year	(in millions)
2023 (six months remaining)	$	9.0
2024		17.2
2025		0.6
Total	$	26.8

- Definition

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

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-Section 50
-Paragraph 1
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Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
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Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 11: http://www.xbrl.org/2003/role/exampleRef
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Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Revenue Recognition (Tables)

6 Months Ended

Mar. 31, 2023

Revenue Recognition

Schedule of revenues disaggregated by revenue sources


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2023		2022		2023		2022

	(in millions)
Cost reimbursable	$	1,511.3	$	1,378.9	$	3,026.2	$	2,686.5
Guaranteed maximum price		1,151.0		1,004.9		2,239.2		2,072.6
Fixed-price		827.8		829.9		1,607.1		1,721.3
Total revenue	$	3,490.1	$	3,213.7	$	6,872.5	$	6,480.4


	Three months ended				Six months ended
	March 31,		March 31,		March 31,		March 31,
	2023		2022		2023		2022

	(in millions)
Americas	$	2,630.3	$	2,400.5	$	5,209.9	$	4,864.6
Europe, Middle East, India, Africa		494.1		457.6		942.1		898.5
Asia-Australia-Pacific		365.7		355.6		720.5		717.3
Total revenue	$	3,490.1	$	3,213.7	$	6,872.5	$	6,480.4

Schedule of net accounts receivable


	March 31,		September 30,
	2023		2022

	(in millions)
Billed	$	2,040.1	$	1,931.4
Contract retentions		464.1		490.4
Total accounts receivable—gross		2,504.2		2,421.8
Allowance for doubtful accounts and credit losses		(76.3)		(104.0)
Total accounts receivable—net	$	2,427.9	$	2,317.8

Joint Ventures and Variable Interest Entities (Tables)

6 Months Ended

Mar. 31, 2023

Joint Ventures and Variable Interest Entities

Schedule of financial information of the consolidated joint ventures


	March 31,
	2023		September 30,
	(unaudited)		2022

	(in millions)
Current assets	$	721.1	$	630.8
Non-current assets		74.1		73.8
Total assets	$	795.2	$	704.6

Current liabilities	$	642.5	$	530.6
Non-current liabilities		1.5		1.5
Total liabilities		644.0		532.1
Total AECOM equity		21.1		56.7
Noncontrolling interests		130.1		115.8
Total owners’ equity		151.2		172.5
Total liabilities and owners’ equity	$	795.2	$	704.6

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


	March 31,		September 30,
	2023		2022

	(in millions)
Current assets	$	1,130.7	$	1,279.4
Non-current assets		1,158.2		1,128.7
Total assets	$	2,288.9	$	2,408.1

Current liabilities	$	581.1	$	751.4
Non-current liabilities		521.8		521.3
Total liabilities		1,102.9		1,272.7
Joint ventures’ equity		1,186.0		1,135.4
Total liabilities and joint ventures’ equity	$	2,288.9	$	2,408.1

AECOM’s investment in unconsolidated joint ventures	$	387.1	$	355.0


	Six Months Ended
	March 31,		March 31,
	2023		2022

	(in millions)
Revenue	$	642.1	$	925.1
Cost of revenue		586.9		888.1
Gross profit	$	55.2	$	37.0
Net income	$	51.9	$	34.0

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


	Six Months Ended
	March 31,		March 31,
	2023		2022

	(in millions)
Pass-through joint ventures	$	14.5	$	15.7
Other joint ventures		2.8		4.2
Total	$	17.3	$	19.9

Pension Benefit Obligations (Tables)

6 Months Ended

Mar. 31, 2023

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, 2023				March 31, 2022				March 31, 2023				March 31, 2022
	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	$	—	$	0.2
Interest cost on projected benefit obligation		2.4		11.9		1.1		6.3		4.9		23.4		2.3		12.7
Expected return on plan assets		(1.4)		(15.1)		(1.4)		(10.8)		(2.9)		(29.8)		(2.8)		(21.8)
Amortization of net loss (gain)		0.8		(0.2)		1.4		1.8		1.7		(0.3)		2.8		3.7
Settlement loss recognized		—		—		0.2		—		—		—		0.2		—
Net periodic benefit cost (credit)	$	1.8	$	(3.3)	$	1.3	$	(2.6)	$	3.7	$	(6.5)	$	2.5	$	(5.2)

Debt (Tables)

6 Months Ended

Mar. 31, 2023

Debt

Schedule of debt


	March 31,		September 30,
	2023		2022

	(in millions)
Credit Agreement	$	1,134.4	$	1,143.3
2027 Senior Notes		997.3		997.3
Other debt		94.4		84.0
Total debt		2,226.1		2,224.6
Less: Current portion of debt and short-term borrowings		(57.0)		(48.6)
Less: Unamortized debt issuance costs		(16.9)		(19.3)
Long-term debt	$	2,152.2	$	2,156.7

Schedule of maturities of debt


Fiscal Year
2023 (six months remaining)	$	32.2
2024		78.7
2025		45.4
2026		408.1
2027		1,005.7
Thereafter		656.0
Total	$	2,226.1

Derivative Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2023

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, 2023
Notional Amount	Notional Amount	Fixed	Effective	Expiration
Currency	(in millions)	Rate	Date	Date
USD	400.0	1.349%	February 2023	March 2028


September 30, 2022
Notional Amount	Notional Amount	Fixed	Effective	Expiration
Currency	(in millions)	Rate	Date	Date
USD	200.0	2.60%	March 2018	February 2023
USD	400.0	1.349%	February 2023	March 2028

Share-based Payments (Tables)

6 Months Ended

Mar. 31, 2023

Share-based Payments

Schedule of restricted stock units and PEP units activity


	2023						2022
		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,	1.0	$	53.05	0.7	$	60.60	1.3	$	38.88	1.2	$	37.22
Granted	0.3	$	83.64	0.2	$	94.65	0.3	$	74.32	0.2	$	85.48
PEP units earned	—	$	—	0.2	$	43.19	—	$	—	0.6	$	27.90
Vested	(0.4)	$	44.95	(0.4)	$	43.19	(0.5)	$	29.36	(1.3)	$	27.89
Outstanding at March 31,	0.9	$	65.75	0.7	$	75.53	1.1	$	53.02	0.7	$	60.64

Earnings Per Share (Tables)

6 Months Ended

Mar. 31, 2023

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,
	2023	2022	2023	2022

	(in millions)
Denominator for basic earnings per share	138.9	141.1	138.8	141.4
Potential common shares	1.4	1.5	1.7	2.2
Denominator for diluted earnings per share	140.3	142.6	140.5	143.6

Leases (Tables)

6 Months Ended

Mar. 31, 2023

Leases

Schedule of components of lease expense


	Three Months Ended				Six Months Ended
	March 31, 2023		March 31, 2022		March 31, 2023		March 31, 2022

	(in millions)
Operating lease cost	$	41.6	$	43.7	$	83.1	$	87.8
Finance lease cost:
Amortization of right-of-use assets		5.7		4.6		10.8		8.7
Interest on lease liabilities		0.6		0.6		1.2		1.1
Variable lease cost		8.6		8.3		16.5		16.4
Total lease cost	$	56.5	$	57.2	$	111.6	$	114.0

Schedule of additional balance sheet information related to leases


		As of		As of
(in millions except as noted)	Balance Sheet Classification	March 31, 2023		September 30, 2022
Assets:
Operating lease assets	Operating lease right-of-use assets	$	558.1	$	539.8
Finance lease assets	Property and equipment – net		59.4		49.4
Total lease assets		$	617.5	$	589.2

Liabilities:
Current:
Operating lease liabilities	Accrued expenses and other current liabilities	$	147.7	$	145.6
Finance lease liabilities	Current portion of long-term debt		21.9		18.1
Total current lease liabilities			169.6		163.7
Non-current:
Operating lease liabilities	Operating lease liabilities, noncurrent		603.1		595.3
Finance lease liabilities	Long-term debt		37.8		32.0
Total non-current lease liabilities		$	640.9	$	627.3


	As of		As of
	March 31, 2023		September 30, 2022
Weighted average remaining lease term (in years):
Operating leases	6.6		6.5
Finance leases	3.0		3.1
Weighted average discount rates:
Operating leases	4.2	%	4.0	%
Finance leases	3.9	%	3.8	%

Schedule of additional cash flow information related to leases


	Six Months Ended
	March 31,		March 31,
	2023		2022

	(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	94.8	$	102.7
Operating cash flows from finance leases		1.2		1.1
Financing cash flows from finance leases		11.3		9.7
Right-of-use assets obtained in exchange for new operating leases		66.4		31.9
Right-of-use assets obtained in exchange for new finance leases		19.6		18.4

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


	Operating Leases		Finance Leases

Fiscal Year	(in millions)
2023 (six months remaining)	$	90.4	$	11.9
2024		164.3		22.6
2025		137.9		16.8
2026		110.0		9.7
2027		83.3		2.3
Thereafter		278.5		0.1
Total lease payments	$	864.4	$	63.4
Less: Amounts representing interest	$	(113.6)	$	(3.7)
Total lease liabilities	$	750.8	$	59.7

Other Financial Information (Tables)

6 Months Ended

Mar. 31, 2023

Other Financial Information

Schedule of accrued expenses and other current liabilities


	March 31,		September 30,
	2023		2022

	(in millions)
Accrued salaries and benefits	$	556.9	$	602.2
Accrued contract costs		1,267.6		1,246.0
Other accrued expenses		329.3		333.2
Total	$	2,153.8	$	2,181.4

Reclassifications out of Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Mar. 31, 2023

Reclassifications out of Accumulated Other Comprehensive Loss

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


			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		(Loss)/Gain on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at December 31, 2021	$	(313.4)	$	(585.3)	$	(0.5)	$	(899.2)
Other comprehensive income (loss) before reclassification		6.5		(10.4)		16.1		12.2
Amounts reclassified from accumulated other comprehensive loss		2.5		19.5		0.9		22.9
Balances at March 31, 2022	$	(304.4)	$	(576.2)	$	16.5	$	(864.1)


			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)


			Foreign				Accumulated
	Pension		Currency		(Loss)/Gain on		Other
	Related		Translation		Derivative		Comprehensive
	Adjustments		Adjustments		Instruments		Loss
Balances at September 30, 2021	$	(316.2)	$	(580.1)	$	(4.1)	$	(900.4)
Other comprehensive income (loss) before reclassification		6.8		(15.6)		18.8		10.0
Amounts reclassified from accumulated other comprehensive loss		5.0		19.5		1.8		26.3
Balances at March 31, 2022	$	(304.4)	$	(576.2)	$	16.5	$	(864.1)

Reportable Segments (Tables)

6 Months Ended

Mar. 31, 2023

Reportable Segments

Schedule of financial information concerning the Company's reportable segments


							AECOM
Reportable Segments:	Americas			International			Capital		Corporate		Total

	($ in millions)
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		178.2			60.1			(5.6)		(35.2)		197.5
Gross profit as a % of revenue		6.6	%		6.4	%		—		—		6.5	%

Three Months Ended March 31, 2022:
Revenue	$	2,399.9		$	813.3		$	0.5	$	—	$	3,213.7
Gross profit		160.4			49.1			0.5		—		210.0
Equity in earnings of joint ventures		3.2			5.7			3.1		—		12.0
General and administrative expenses		—			—			(2.6)		(34.6)		(37.2)
Restructuring costs		—			—			—		(73.3)		(73.3)
Operating income		163.6			54.8			1.0		(107.9)		111.5
Gross profit as a % of revenue		6.7	%		6.0	%		—		—		6.5	%

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	%

Six Months Ended March 31, 2022:
Revenue	$	4,863.4		$	1,615.7		$	1.3	$	—	$	6,480.4
Gross profit		310.4			98.5			1.3		—		410.2
Equity in earnings of joint ventures		6.4			9.3			4.2		—		19.9
General and administrative expenses		—			—			(5.6)		(68.0)		(73.6)
Restructuring costs		—			—			—		(76.7)		(76.7)
Operating income (loss)		316.8			107.8			(0.1)		(144.7)		279.8
Gross profit as a % of revenue		6.4	%		6.1	%		—		—		6.3	%


Reportable Segments:

Total assets
March 31, 2023	$	7,290.3	$	2,659.0	$	305.8	$	1,020.8
September 30, 2022	$	7,232.2	$	2,467.9	$	264.9	$	1,095.3

Basis of Presentation (Details)	6 Months Ended
Basis of Presentation (Details)	Mar. 31, 2023
Minimum
Basis of presentation
Length of fiscal year	364 days
Maximum
Basis of presentation
Length of fiscal year	371 days

Discontinued Operations, Goodwill and Intangible Assets - Sale of businesses (Details) - USD ($) $ in Millions		3 Months Ended
	Jan. 28, 2022	Dec. 31, 2022	Mar. 31, 2023
Disposal by Sale \| Civil infrastructure construction business
Summary of financial information of the Disposal Group
Losses on remeasurement to fair value less cost to sell, net of tax		$ 40.0
Held for sale \| Civil infrastructure construction business
Summary of financial information of the Disposal Group
Contingent consideration, prior work claims			$ 38.9
Held for sale \| Oil and gas construction business
Summary of financial information of the Disposal Group
Consideration	$ 14.0
Pre-tax gain	$ 3.0

Discontinued Operations, Goodwill and Intangible Assets - Balance sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Summary of financial information of the Disposal Group is as follows:
Long-term liabilities held for sale	$ 275	$ 200
Held for sale
Summary of financial information of the Disposal Group is as follows:
Cash and cash equivalents	7,300	4,600
Receivables and contract assets	103,300	66,200
Other		8,200
Current assets held for sale	110,600	79,000
Property and equipment, net	12,500	8,000
Write-down of assets to fair value less cost to sell	(12,500)	(8,000)
Accounts payable and accrued expenses	62,200	49,200
Current liabilities held for sale	62,200	49,200
Long-term liabilities held for sale	$ 300	$ 200

Discontinued Operations, Goodwill and Intangible Assets - Income Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Summary of financial information of the Disposal Group
Net loss from discontinuing operations	$ (41,775)	$ (6,113)	$ (42,163)	$ (68,053)
Held for sale
Summary of financial information of the Disposal Group
Revenue	58,800	84,700	100,500	211,800
Cost of revenue	62,100	84,300	102,400	229,600
Gross (loss) profit	(3,300)	400	(1,900)	(17,800)
Equity in earnings of joint ventures			(1,700)	(3,400)
Loss on disposal activities	(40,200)	(3,400)	(40,200)	(45,500)
Transaction costs		(3,900)	(200)	(6,200)
Loss from operations	(43,500)	(6,900)	(44,000)	(72,900)
Interest expense				(100)
Loss before taxes	(43,500)	(6,900)	(44,000)	(73,000)
Income tax benefit	(1,700)	(900)	(1,800)	(5,000)
Net loss from discontinuing operations	$ (41,800)	$ (6,000)	$ (42,200)	$ (68,000)

Discontinued Operations, Goodwill and Intangible Assets - Statement of Cash Flows (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Held for sale
Summary of financial information of the Disposal Group
Payments for capital expenditures	$ 0.5	$ (0.6)	$ 4.5	$ (1.5)

Discontinued Operations, Goodwill and Intangible Assets - Goodwill by segments (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2023 USD ($)
Changes in the carrying value of goodwill by reporting segment
Goodwill at the beginning of the period	$ 3,380,761
Foreign Exchange Impact	50,500
Goodwill at the end of the period	3,431,302
Americas
Changes in the carrying value of goodwill by reporting segment
Goodwill at the beginning of the period	2,610,700
Foreign Exchange Impact	4,000
Goodwill at the end of the period	2,614,700
International
Changes in the carrying value of goodwill by reporting segment
Goodwill at the beginning of the period	770,100
Foreign Exchange Impact	46,500
Goodwill at the end of the period	$ 816,600

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Discontinued Operations, Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Identifiable intangible assets with finite useful lives
Intangible Assets, Net	$ 26,813	$ 35,552
Customer relationships
Identifiable intangible assets with finite useful lives
Gross Amount	668,200	663,000
Accumulated Amortization	641,400	(627,400)
Intangible Assets, Net	$ 26,800	$ 35,600
Customer relationships \| Minimum
Identifiable intangible assets with finite useful lives
Amortization Period	1 year
Customer relationships \| Maximum
Identifiable intangible assets with finite useful lives
Amortization Period	11 years

Discontinued Operations, Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Discontinued Operations, Goodwill and Intangible Assets.
Amortization expense	$ 9,300	$ 9,500
Estimated amortization expense for the succeeding years
2023 (six months remaining)	9,000
2024	17,200
2025	600
Intangible Assets, Net	$ 26,813		$ 35,552

Revenue Recognition (Details) - USD ($) $ in Billions	6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Billions	Mar. 31, 2023	Mar. 31, 2022
ASU 2014-09
Revenue Recognition
Passed through costs included in revenue and cost of sales	$ 3.6	$ 3.3

Revenue Recognition - Disaggregated revenues (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Revenue Recognition
Total revenue	$ 3,490.1	$ 3,213.7	$ 6,872.5	$ 6,480.4
Cost reimbursable
Revenue Recognition
Total revenue	1,511.3	1,378.9	3,026.2	2,686.5
Guaranteed maximum price
Revenue Recognition
Total revenue	1,151.0	1,004.9	2,239.2	2,072.6
Fixed price
Revenue Recognition
Total revenue	827.8	829.9	1,607.1	1,721.3
Americas
Revenue Recognition
Total revenue	2,630.3	2,400.5	5,209.9	4,864.6
Europe, Middle East, India, Africa
Revenue Recognition
Total revenue	494.1	457.6	942.1	898.5
Asia-Australia-Pacific
Revenue Recognition
Total revenue	$ 365.7	$ 355.6	$ 720.5	$ 717.3

Revenue Recognition - Performance obligations (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue, remaining performance obligations
Performance obligation	$ 22,200.0
Recognized revenue	$ 696.9	$ 458.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, remaining performance obligations
Performance Obligation expected timing of satisfaction period	12 months
Performance obligation, percent to be satisfied	55.00%

Revenue Recognition - Accounts receivable, net (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Sep. 30, 2022
Billed	$ 2,040,100	$ 1,931,400
Contract retentions	464,100	490,400
Total accounts receivable-gross	2,504,200	2,421,800
Allowance for doubtful accounts and credit losses	(76,300)	(104,000)
Total accounts receivable-net	2,427,913	2,317,812
Additional disclosures
Significant claims recorded in contract assets and other non-current assets	140,000	110,000
Trade receivables sold with no financial and legal obligations	$ 256,200	$ 240,300
Outstanding receivables
Additional disclosures
Number of customers accounting for 10%	No	No
Concentration Risk Threshold Percentage	10.00%	10.00%

Joint Ventures and Variable Interest Entities - Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Financial Information
Current assets	$ 6,039,143		$ 6,039,143			$ 5,822,810
TOTAL ASSETS	11,386,526		11,386,526			11,139,315
Current liabilities	5,537,265		5,537,265			5,404,171
TOTAL LIABILITIES	8,649,651		8,649,651			8,533,936
Total AECOM equity	2,594,340		2,594,340			2,476,654
Noncontrolling interests	142,535		142,535			128,725
TOTAL STOCKHOLDERS' EQUITY	2,736,875	$ 2,649,653	2,736,875	$ 2,649,653	$ 2,692,893	2,605,379	$ 2,626,239	$ 2,829,577
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	11,386,526		11,386,526			11,139,315
Revenue	3,490,172	$ 3,213,658	6,872,527	6,480,374
Consolidated Joint Ventures [Member]
Financial Information
Current assets	721,100		721,100			630,800
Non-current assets	74,100		74,100			73,800
TOTAL ASSETS	795,200		795,200			704,600
Current liabilities	642,500		642,500			530,600
Non-current liabilities	1,500		1,500			1,500
TOTAL LIABILITIES	644,000		644,000			532,100
Total AECOM equity	21,100		21,100			56,700
Noncontrolling interests	130,100		130,100			115,800
TOTAL STOCKHOLDERS' EQUITY	151,200		151,200			172,500
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 795,200		795,200			$ 704,600
Revenue			$ 941,700	$ 627,300

Joint Ventures and Variable Interest Entities - Unconsolidated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021
Financial Information
Current assets	$ 6,039,143		$ 6,039,143			$ 5,822,810
TOTAL ASSETS	11,386,526		11,386,526			11,139,315
Current liabilities	5,537,265		5,537,265			5,404,171
TOTAL LIABILITIES	8,649,651		8,649,651			8,533,936
Joint ventures' equity	2,736,875	$ 2,649,653	2,736,875	$ 2,649,653	$ 2,692,893	2,605,379	$ 2,626,239	$ 2,829,577
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	11,386,526		11,386,526			11,139,315
AECOM's investment in unconsolidated joint ventures	387,103		387,103			354,983
Joint ventures summarized financial information
Revenue	3,490,172	3,213,658	6,872,527	6,480,374
Cost of revenue	3,262,078	3,003,706	6,429,445	6,070,218
Gross profit	228,094	209,952	443,082	410,156
Net income	84,483	$ 48,513	181,246	109,790
Unconsolidated Joint Ventures [Member]
Financial Information
Current assets	1,130,700		1,130,700			1,279,400
Non-current assets	1,158,200		1,158,200			1,128,700
TOTAL ASSETS	2,288,900		2,288,900			2,408,100
Current liabilities	581,100		581,100			751,400
Non-current liabilities	521,800		521,800			521,300
TOTAL LIABILITIES	1,102,900		1,102,900			1,272,700
Joint ventures' equity	1,186,000		1,186,000			1,135,400
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,288,900		2,288,900			2,408,100
AECOM's investment in unconsolidated joint ventures	$ 387,100		387,100			$ 355,000
Joint ventures summarized financial information
Revenue			642,100	925,100
Cost of revenue			586,900	888,100
Gross profit			55,200	37,000
Net income			$ 51,900	$ 34,000

Joint Ventures and Variable Interest Entities - Equity in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Financial Information
Equity in earnings of joint ventures	$ 7,456	$ 11,919	$ 17,285	$ 19,869
Unconsolidated Joint Ventures
Financial Information
Equity in earnings of joint ventures			17,300	19,900
Unconsolidated Joint Ventures \| Pass through joint ventures
Financial Information
Equity in earnings of joint ventures			14,500	15,700
Unconsolidated Joint Ventures \| Other joint ventures
Financial Information
Equity in earnings of joint ventures			$ 2,800	$ 4,200

Pension Benefit Obligations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Percentage of Plan Assets:
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]			Nonoperating Income (Expense)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Nonoperating Income (Expense)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]			Nonoperating Income (Expense)
UNITED STATES
Percentage of Plan Assets:
Interest cost on projected benefit obligation	$ 2.4	$ 1.1	$ 4.9	$ 2.3
Expected return on plan assets	(1.4)	(1.4)	(2.9)	(2.8)
Amortization of net loss/(gain)	0.8	1.4	1.7	2.8
Settlement loss recognized		0.2		0.2
Net periodic benefit cost (credit)	1.8	1.3	3.7	2.5
Change in benefit obligation:
Employer contributions			4.0
Expected remaining scheduled annual employer contributions for the current fiscal year					$ 4.8
Foreign Pension Plan, Defined Benefit [Member]
Percentage of Plan Assets:
Service costs	0.1	0.1	0.2	0.2
Interest cost on projected benefit obligation	11.9	6.3	23.4	12.7
Expected return on plan assets	(15.1)	(10.8)	(29.8)	(21.8)
Amortization of net loss/(gain)	(0.2)	1.8	(0.3)	3.7
Net periodic benefit cost (credit)	$ (3.3)	$ (2.6)	(6.5)	$ (5.2)
Change in benefit obligation:
Employer contributions			$ 12.6
Expected remaining scheduled annual employer contributions for the current fiscal year					$ 11.1

Debt - Long-term debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Debt
Total debt	$ 2,226,100	$ 2,224,600
Less: Current portion of debt and short-term borrowings	(57,000)	(48,600)
Less: Unamortized debt issuance costs	(16,900)	(19,300)
Long-term debt	2,152,191	2,156,686
Credit Agreement
Debt
Total debt	1,134,400	1,143,300
2027 Senior Notes
Debt
Total debt	997,300	997,300
Other Debt
Debt
Total debt	$ 94,400	$ 84,000

Debt - Scheduled Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2023	Sep. 30, 2022
Debt
2023 (nine months remaining)	$ 32.2
2024	78.7
2025	45.4
2026	408.1
2027	1,005.7
Thereafter	656.0
Total debt	$ 2,226.1	$ 2,224.6

Debt - Credit Agreement (Details)			6 Months Ended
Debt - Credit Agreement (Details)	Apr. 13, 2021 USD ($)	Feb. 08, 2021 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Sep. 30, 2022 USD ($)	Jun. 25, 2021 USD ($)
Debt agreements
Current borrowing capacity			$ 441,600,000
Outstanding letters of credit			860,500,000		$ 640,300,000
Proceeds from borrowings under credit agreements			1,544,751,000	$ 1,335,742,000
2014 Credit Agreement \| Base Rate
Debt agreements
Interest rate, basis spread (as a percent)		0.225%
2014 Credit Agreement \| LIBOR
Debt agreements
Interest rate, basis spread (as a percent)		1.225%
2014 Credit Agreement \| Term loan A
Debt agreements
Maximum borrowing capacity						$ 215,000,000
2014 Credit Agreement \| Term B facility
Debt agreements
Maximum borrowing capacity	$ 700,000,000
2014 Credit Agreement \| Term B facility \| Base Rate
Debt agreements
Interest rate, basis spread (as a percent)	0.75%
2014 Credit Agreement \| Term B facility \| Euro currency rate
Debt agreements
Interest rate, basis spread (as a percent)	1.75%
2014 Credit Agreement \| Revolving credit facility
Debt agreements
Current borrowing capacity			1,145,600,000		1,145,600,000
Outstanding letters of credit			$ 4,400,000		$ 4,400,000
Credit Agreement \| Minimum
Debt agreements
Consolidated leverage ratio		1.00	1.00
Consolidated interest coverage ratio		1.00
Credit Agreement \| Maximum
Debt agreements
Consolidated leverage ratio		4.00	2.20
Consolidated interest coverage ratio		3.00
Credit Agreement \| Term loan A
Debt agreements
Maximum borrowing capacity		$ 246,968,737.50
Credit Agreement \| Revolving credit facility
Debt agreements
Maximum borrowing capacity		$ 1,150,000,000
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 (Details) - 2027 Senior Notes - USD ($)	Feb. 21, 2017	Mar. 31, 2023
Debt
Face amount	$ 1,000,000,000
Fair value of debt instrument		$ 972,400,000
Interest rate (as a percent)	5.125%
At any time and from time to time prior to December 15, 2026
Debt
Redemption price (in percent)	100.00%
At any time on or after December 15, 2026
Debt
Redemption price (in percent)	100.00%

Debt - Other Debt and Other Items (Details) - USD ($) $ in Millions	Mar. 31, 2023	Sep. 30, 2022
Debt
Outstanding letters of credit	$ 860.5	$ 640.3
Current borrowing capacity	441.6
Unsecured
Debt
Current borrowing capacity	$ 441.6

Debt - Effective Interest Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Debt
Effective interest rate including effects of interest rate swap agreements			5.2%	3.3%
Amortization of deferred debt issuance costs	$ 1.2	$ 1.2	$ 2.4	$ 2.5

Derivative Financial Instruments and Fair Value Measurements - Cash Flow Hedges (Details) - USD ($) $ in Millions	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021
Derivative financial instruments
Fixed Rate (as a percent)	1.349%
Interest Rate Cap
Derivative financial instruments
Notional Amount			$ 300.0
Interest Rate Cap \| Maximum
Derivative financial instruments
Fixed Rate (as a percent)			3.50%
Interest Rate Swap
Derivative financial instruments
Notional Amount				$ 400.0
Fixed Rate (as a percent)			3.50%
Designated as Hedging Instrument \| Cash Flow Hedging \| Interest Rate Swap \| USD \| March 2018
Derivative financial instruments
Notional Amount		$ 200.0
Fixed Rate (as a percent)		2.60%
Designated as Hedging Instrument \| Cash Flow Hedging \| Interest Rate Swap \| USD \| February 2023
Derivative financial instruments
Notional Amount	$ 400.0	$ 400.0
Fixed Rate (as a percent)	1.349%	1.349%

Derivative Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) - Interest Rate Swap - USD ($) $ in Millions	Mar. 31, 2023	Sep. 30, 2022
Other current assets
Derivative financial instruments
Fair values of the interest rate swap and cap agreements	$ 14.3	$ 9.4
Other non-current assets
Derivative financial instruments
Fair values of the interest rate swap and cap agreements	25.8	$ 41.8
Other current liabilities
Derivative financial instruments
Fair values of the interest rate swap and cap agreements	$ 1.9

Share-Based Payments (Details) - USD ($) $ / shares in Units, shares in Millions	6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Other disclosures
Unrecognized compensation expense	$ 64,200,000		$ 45,900,000
Recognition period of unrecognized compensation expense	3 years		3 years
PEP Units
Share-based Payments
Vesting period	3 years
Units
Outstanding at September 30 (in units)	0.7	1.2	1.2
Granted (in units)	0.2	0.2
PEP units earned (in units)	0.2	0.6
Vested (in shares)	(0.4)	(1.3)
Outstanding at March 31 (in units)	0.7	0.7	0.7
Weighted Average Grant-Date Fair Value
Outstanding at September 30 (in USD per unit)	$ 60.60	$ 37.22	$ 37.22
Granted (in USD per unit)	94.65	85.48
PEP units earned (in USD per unit)	43.19	27.90
Vested (in USD per unit)	43.19	27.89
Outstanding at March 31 (in USD per unit)	$ 75.53	$ 60.64	$ 60.60
Restricted Stock Units (RSUs)
Units
Outstanding at September 30 (in units)	1.0	1.3	1.3
Granted (in units)	0.3	0.3
Vested (in shares)	(0.4)	(0.5)
Outstanding at March 31 (in units)	0.9	1.1	1.0
Weighted Average Grant-Date Fair Value
Outstanding at September 30 (in USD per unit)	$ 53.05	$ 38.88	$ 38.88
Granted (in USD per unit)	83.64	74.32
Vested (in USD per unit)	44.95	29.36
Outstanding at March 31 (in USD per unit)	$ 65.75	$ 53.02	$ 53.05
Other disclosures
Compensation expense related to share-based payments	$ 24.6	$ 21.7

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure
Effective tax rate (as a percent)		23.10%	24.80%
Tax at federal statutory rate (as a percent)		21.00%
Tax rate changes	$ 19.5
Income tax credits and incentives		$ 23.6	$ 26.5
Benefit related to release of valuation allowance on foreign tax credits			13.9
Tax expense related to Foreign residual income		19.1
State income tax, net of federal benefit		9.0	11.1
Gross book-tax differences from non-U.S. subsidiaries		$ 1,300.0
Valuation allowances			$ 14.9
Foreign
Income Tax Disclosure
Tax benefit related to the release of a valuation allowance on net operating losses	$ 21.9

Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
Earnings Per Share (Details) - shares shares in Thousands	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share
Denominator for basic earnings per share	138,927	141,060	138,807	141,419
Potential common shares	1,400	1,500	1,700	2,200
Denominator for diluted earnings per share	140,335	142,626	140,489	143,631

Leases - Components of lease expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Operating lease cost
Operating lease cost	$ 41.6	$ 43.7	$ 83.1	$ 87.8
Finance lease cost
Amortization of right-of-use assets	5.7	4.6	10.8	8.7
Interest on lease liabilities	0.6	0.6	1.2	1.1
Variable lease cost	8.6	8.3	16.5	16.4
Total lease cost	$ 56.5	$ 57.2	$ 111.6	$ 114.0

Leases - Additional balance sheet information (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Sep. 30, 2022
Assets:
Operating lease assets	$ 558,150	$ 539,773
Balance Sheet classification of operating lease assets	Operating lease assets	Operating lease assets
Finance lease assets	$ 59,400	$ 49,400
Balance Sheet classification of finance lease assets	PROPERTY AND EQUIPMENT-NET	PROPERTY AND EQUIPMENT-NET
Total lease assets	$ 617,500	$ 589,200
Current:
Operating lease liabilities	$ 147,700	$ 145,600
Balance Sheet classification of operating lease liabilities	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Finance lease liabilities	$ 21,900	$ 18,100
Balance Sheet classification of finance lease liabilities	Current portion of long-term debt	Current portion of long-term debt
Total current lease liabilities	$ 169,600	$ 163,700
Non-current:
Operating lease liabilities	$ 603,127	$ 595,308
Balance Sheet classification of operating lease liabilities	Operating lease liabilities	Operating lease liabilities
Finance lease liabilities	$ 37,800	$ 32,000
Balance Sheet classification of finance lease liabilities	LONG-TERM DEBT	LONG-TERM DEBT
Total non-current lease liabilities	$ 640,900	$ 627,300
Weighted average remaining lease term (in years):
Operating leases	6 years 7 months 6 days	6 years 6 months
Finance leases	3 years	3 years 1 month 6 days
Weighted average discount rates:
Operating leases	4.20%	4.00%
Finance leases	3.90%	3.80%

Leases - Additional cash flow information (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 94.8	$ 102.7
Operating cash flows from finance leases	1.2	1.1
Financing cash flows from finance leases	11.3	9.7
Right-of-use assets obtained in exchange for new operating leases	66.4	31.9
Right-of-use assets obtained in exchange for new finance leases	$ 19.6	$ 18.4

Leases - Lease payments under operating lease (Details) $ in Millions	Mar. 31, 2023 USD ($)
Amounts payable under non-cancelable operating lease commitments
2023 (six months remaining)	$ 90.4
2024	164.3
2025	137.9
2026	110.0
2027	83.3
Thereafter	278.5
Total lease payments	864.4
Less: Amounts representing interest	(113.6)
Total lease liabilities	$ 750.8

Leases - Lease payments under finance lease (Details) $ in Millions	Mar. 31, 2023 USD ($)
Leases
2023 (six months remaining)	$ 11.9
2024	22.6
2025	16.8
2026	9.7
2027	2.3
Thereafter	0.1
Total lease payments	63.4
Less: Amounts representing interest	(3.7)
Total lease liabilities	$ 59.7

Other Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Mar. 01, 2023	Sep. 30, 2022
Accrued expenses and other current liabilities
Accrued salaries and benefits	$ 556,900		$ 556,900			$ 602,200
Accrued contract costs	1,267,600		1,267,600			1,246,000
Other accrued expenses	329,300		329,300			333,200
Total	2,153,844		2,153,844			2,181,408
Restructuring costs	3,973	$ 73,292	41,432	$ 76,663
Accrued restructuring expenses	30,700		30,700
Accrued restructuring expenses		600		600
Restructuring cost related to margins and delivery efficiency				7,600
Dividend paid per share in cash					$ 0.18
Accrued and unpaid dividend	26,500		26,500
Foreign Currency Translation Adjustments
Accrued expenses and other current liabilities
Amounts reclassified from accumulated other comprehensive (loss) income		$ 19,500		19,500
Personnel and other costs
Accrued expenses and other current liabilities
Restructuring costs			39,000	5,400
Real estate costs
Accrued expenses and other current liabilities
Restructuring costs			2,400
Real estate costs \| Russia
Accrued expenses and other current liabilities
Restructuring costs				69,100
Other restricting
Accrued expenses and other current liabilities
Restructuring costs				$ 2,200
Professional liability accrual
Accrued expenses and other current liabilities
Accrued contract costs	$ 707,700		$ 707,700			$ 713,600

Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Accumulated balances
Balance at the beginning of the period			$ (979,675)
Balance at the end of the period	$ (921,087)		(921,087)
Pension Related Adjustments
Accumulated balances
Balance at the beginning of the period	(232,100)	$ (313,400)	(217,300)	$ (316,200)
Other comprehensive income (loss) before reclassification	(4,200)	6,500	(19,600)	6,800
Amounts reclassified from accumulated other comprehensive income (loss)	500	2,500	1,100	5,000
Balance at the end of the period	(235,800)	(304,400)	(235,800)	(304,400)
Foreign Currency Translation Adjustments
Accumulated balances
Balance at the beginning of the period	(721,400)	(585,300)	(799,300)	(580,100)
Other comprehensive income (loss) before reclassification	8,500	(10,400)	86,400	(15,600)
Amounts reclassified from accumulated other comprehensive income (loss)		19,500		19,500
Balance at the end of the period	(712,900)	(576,200)	(712,900)	(576,200)
Loss on Derivative Instruments
Accumulated balances
Balance at the beginning of the period	35,100	(500)	36,900	(4,100)
Other comprehensive income (loss) before reclassification	(5,600)	16,100	(7,400)	18,800
Amounts reclassified from accumulated other comprehensive income (loss)	(1,900)	900	(1,900)	1,800
Balance at the end of the period	27,600	16,500	27,600	16,500
Accumulated Other Comprehensive Loss
Accumulated balances
Balance at the beginning of the period	(918,400)	(899,200)	(979,700)	(900,400)
Other comprehensive income (loss) before reclassification	(1,300)	12,200	59,400	10,000
Amounts reclassified from accumulated other comprehensive income (loss)	(1,400)	22,900	(800)	26,300
Balance at the end of the period	$ (921,100)	$ (864,100)	$ (921,100)	$ (864,100)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Commitments and Contingencies (Details) - USD ($) $ in Millions		1 Months Ended			6 Months Ended
	Jan. 31, 2020	Dec. 31, 2019	Apr. 30, 2019	Mar. 31, 2019	Mar. 31, 2023	Sep. 30, 2022	Dec. 06, 2019	Dec. 31, 2014
Commitments and Contingencies
Unsecured credit facilities					$ 441.6
New York
Commitments and Contingencies
Contingency liability					146.0
Percentage of claim recoveries due to seller	90.00%
Percentage of claim recoveries due to purchaser	10.00%
Montana
Commitments and Contingencies
Damages sought			$ 132.0	$ 79.0
Damages sought, counter party		$ 93.0
Department of Energy \| New York \| Minimum [Member]
Commitments and Contingencies
Contingency liability					106.0
Department of Energy \| New York \| Maximum [Member]
Commitments and Contingencies
Contingency liability					146.0
Fund investment capital commitments
Commitments and Contingencies
Commitment					$ 10.9
Commitment period					6 years
Standby letters of credit
Commitments and Contingencies
Outstanding standby letters of credit					$ 860.5	$ 640.3
Contingency liability					864.9
Surety Bond
Commitments and Contingencies
Contingency liability					4,700.0
Collectibility of Receivables
Commitments and Contingencies
Unapproved change orders								$ 103.0
Collectibility of Receivables \| New York
Commitments and Contingencies
Unapproved change orders							$ 60.4
Collectibility of Receivables \| New York \| Minimum [Member]
Commitments and Contingencies
Damages sought					148.5
Collectibility of Receivables \| New York \| Maximum [Member]
Commitments and Contingencies
Damages sought					329.4
Collectibility of Receivables \| Montana
Commitments and Contingencies
Unapproved change orders					90.0
Damages sought					$ 144.0

Reportable Segments and Geographic Information - Summarized financial information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Sep. 30, 2022
Summarized financial information concerning the Company's reportable segments
Revenue	$ 3,490,172	$ 3,213,658	$ 6,872,527	$ 6,480,374
Gross profit	228,094	209,952	443,082	410,156
Equity in earnings of joint ventures	7,456	11,919	17,285	19,869
General and administrative expenses	(34,147)	(37,098)	(69,759)	(73,599)
Restructuring costs	(3,973)	(73,292)	(41,432)	(76,663)
Operating income	197,430	111,481	349,176	279,763
Segment assets	11,386,526		11,386,526		$ 11,139,315
Total
Summarized financial information concerning the Company's reportable segments
Revenue	3,490,100	3,213,700	6,872,500	6,480,400
Gross profit	228,100	210,000	443,100	410,200
Equity in earnings of joint ventures	7,500	12,000	17,300	19,900
General and administrative expenses	(34,200)	(37,200)	(69,800)	(73,600)
Restructuring costs	(3,900)	(73,300)	(41,400)	(76,700)
Operating income	$ 197,500	$ 111,500	$ 349,200	$ 279,800
Gross profit as a % of revenue	6.50%	6.50%	6.40%	6.30%
Corporate
Summarized financial information concerning the Company's reportable segments
General and administrative expenses	$ (31,300)	$ (34,600)	$ (64,200)	$ (68,000)
Restructuring costs	(3,900)	(73,300)	(41,400)	(76,700)
Operating income	(35,200)	(107,900)	(105,600)	(144,700)
Segment assets	1,020,800		1,020,800		1,095,300
Americas
Summarized financial information concerning the Company's reportable segments
Revenue	2,630,200	2,399,900	5,209,500	4,863,400
Gross profit	173,300	160,400	336,200	310,400
Equity in earnings of joint ventures	4,900	3,200	5,800	6,400
Operating income	$ 178,200	$ 163,600	$ 342,000	$ 316,800
Gross profit as a % of revenue	6.60%	6.70%	6.50%	6.40%
Segment assets	$ 7,290,300		$ 7,290,300		7,232,200
International
Summarized financial information concerning the Company's reportable segments
Revenue	859,800	$ 813,300	1,662,600	$ 1,615,700
Gross profit	54,700	49,100	106,500	98,500
Equity in earnings of joint ventures	5,400	5,700	8,700	9,300
Operating income	$ 60,100	$ 54,800	$ 115,200	$ 107,800
Gross profit as a % of revenue	6.40%	6.00%	6.40%	6.10%
Segment assets	$ 2,659,000		$ 2,659,000		2,467,900
AECOM Capital
Summarized financial information concerning the Company's reportable segments
Revenue	100	$ 500	400	$ 1,300
Gross profit	100	500	400	1,300
Equity in earnings of joint ventures	(2,800)	3,100	2,800	4,200
General and administrative expenses	(2,900)	(2,600)	(5,600)	(5,600)
Operating income	(5,600)	$ 1,000	(2,400)	$ (100)
Segment assets	$ 305,800		$ 305,800		$ 264,900