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<br />-. . . ). <br /> <br />Page 111 of171 <br /> <br />AECOM Technology Corporation <br />Consolidated Statements of Cash Flows <br />(in thousands) <br /> <br /> Fiscal Year Ended <br /> September 30, September 30, September 30, <br />~ 2004 2005 2006 <br />CASH FLOWS FROM OPERATING ACTIVITIES: <br />Net income $ 50,436 $ 53,814 .$ 53,686 <br />Adjushnents to recon.cile net income to net cash provided by operating activities: <br />Depreciation and amortizatiDn 12,918 19.928 39,830 <br />Equity in earnings Df unconSDlidated jDint ventures (2,517 ) (2,352 ) (6,554 ) <br />StDck match 1.811 3,214 14.779 <br />Write-off of Class D preferred stock issuance CDSts 2,100 <br />Interest incDme Dn notes frDm stockholders (1,623 ) (2,008 ) (2,111) <br />Deterred income lax expense (benefit) 6,774 13,093 (12,136 ) <br />Gain on tennination of interest rate hedge (1,139 ) <br />Changes in operating assels and liabilities, net of effects of acquisitions: <br />AccDunts receivable 12,679 (72,407 ) (135,418 ) <br />Prepaid expenses and Dther assels (13,919 ) (15,418) (12,845 ) <br />Distribution of earnings from unconSDlidated joint ventures 1,734 364 6,867 <br />Accounts payable (13,507 ) 18,757 47,433 <br />Accrued expenses 1,977 35,593 74,550 <br />Billings in excess of cosls Dn uncompleted contracts (1,081 ) 24,782 14,525 <br />Other liabilities 10,029 34,545 (16,060 ) <br />Income taxes receivable/payable It,372 (30,036 ) 29,822 <br />Change in deferred foreign currency translation adjustment (5,350 ) (8,926 ) 6,445 <br />Change in defined benefit minimum pension liability adjustment ~ (26,356 ) t7,492 <br />Net cash prDvided by operating activities 77,574 46,587 121,266 <br />CASH FLOWS FROM INVESTING ACTIVITIES: <br />Payments for business acquisitions, net Df cash acquired (t4,467 ) (158,894 ) (53,296 ) <br />(payments tD) proceeds frDm investments. net (10,515) 60,538 <br />Deferred income tal( Dn gain frDm the sale of a building (6,494 ) <br />Net investment in unconsolidated joint ventures (],023 ) (8,249 ) (1,026 ) <br />Payments fDr capilal expenditures (18,926 ) (3],175) (32,300 ) <br />Proceeds on sale of prDperty and equipment 603 785 21,301 <br />Net cash used in investing activilies (44,328 ) (136.995 ) (71.815 ) <br />CASH FLOWS FROM FINANCING ACTIVITIES: <br />PrDceeds from borrowings under credit agreements 130,000 342,t61 <br />Repaymenls DfbolTowings under credit and senior note agreements (24,482 ) (9,lO6 ) {442,0 13 } <br />Proceeds from issuance Df common stock and preferred stock, net of notes receivable 19,938 13,986 51,070 <br />Proceeds frDm issuance 0 f stock upon exercise of stock optiDns 3,908 4,914 5,754 <br />Proceeds from issuance Df commDn and preferred stock units 6,479 23,07] 11,108 <br />Payments to repurchase Df former employees' CDmmon stock and commDn stock units (44,373 ) (70,913 ) (58,560 ) <br />Payments to redeem stockholders' notes issued in acquisitions (1,002 ) (2,625 ) (595 ) <br />Proceeds from issuance of convertible preferred stDck 235,000 <br />Payments Dfissuance costs of convertible preferred stock (2,880 ) <br />Paymenls tD redeem preferred stock (116,486 ) <br />Proceeds from terminating interest rate hedge 1,139 <br />Payments Df dividends on convertible preferred stDck ~) (5,250 ) (1,900 ) <br />Net cash (used in) prDvided by finanCing activities (44,782 ) 84,077 23.798 <br />EFFECT OF EXCHANGE RA iE CHANGES ON CASH 2,318 196 269 <br />NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (9,218 ) (6,135 ) 73,518 <br />CASH AND CASH EQUIVALENTS AT BEGINNING or YEAR 69.705 60,487 54,352 <br />CASH AND CASH EQUIVALENTS AT END or YEAR $ 60,487 $ 54,352 .$ 127,870 <br />SUPPLEMENTAL CASH FLOW INFORMATION: <br />Retirement Df fully depreciated equipment (non-cash) $ 27,012 .$ 11,554 .$ 8,122 <br />Interest paid L2.ill. $ 8,788 .$ 14,584 <br />Income taxes paid, net of rcfunds received $ 16,142 $ 20,182 $ 16,366 <br /> <br />See accompanying Notes to Consolidated Financial Statements. <br /> <br />F-7 <br /> <br />http://www.sec.gov/Archives/edgar/data/868857/00011 0465907052146/a07-2309 _31 012ga.... 7/5/2007 <br />