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<br />Page 111 of 171 <br /> <br />AECOM Technology Corporation <br />Consolidated Statements of Cash Flows <br />(in thousands) <br /> <br /> Fiscal Year Eoded <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 />Adjustments to recorici]e net income to net cash provided by operating activities: <br />Depreciation and amortization ]2,918 ]9,928 39,830 <br />Equity in earnings of unconsolidated joint ventures (2,517 ) (2,352 ) (6,554 ) <br />Stock match 1,811 3,214 14,779 <br />Write-off of Class D preferred stock issuance costs 2,100 <br />Interest income on notes tram stockholders (1,623 ) (2,008 ) (2.111 ) <br />Deferred income tax expense (benetit) 6,774 13,093 (12,136) <br />Gain on tennination of inlel'est rate hedge (1,139 ) <br />Changes in operating assets and liabilities, net of effects of acquisitions: <br />Accounts receivable 12,679 (72,407 ) (135,418 ) <br />Prepaid expenses and other assets (13,919 ) (15,418 ) (12,845 ) <br />Distribution of earnings from unconsolidated joint venlures 1,734 364 6,867 <br />Accounls payable (13,507) 18,757 47,433 <br />Accrued expenses 1,977 35,593 74,550 <br />Billings in excess of costs on uncompleted contracts (1,081 ) 24,782 14,525 <br />Other liabi]ities 10,029 34,545 (16,060 ) <br />Income taxes receivable/payable 11,372 (30,036 ) 29,822 <br />Change in deferred foreign currency translation adjusttnent (5,350 ) (8,926 ) 6,445 <br />Change in defined benefit minimum pension liability adjustment ~ (26,356 ) ]7,492 <br />. Net cash provided by operating activities 77,574 46,587 12J,266 <br />CASH FLOWS FROM INVESTING ACTIVITIES: <br />Payments for business acquisitions, net of cash acquired (14,467 ) (158,894 ) (53,296 ) <br />(payments to) proceeds from investtnents, net (10,515 ) 60.538 <br />Deferred income tax on gain from the sale of a building (6,494 ) <br />Net investment in unconsolidated joint ventures (1,023 ) (8,249 ) (1,026 ) <br />Payments for capital expenditures (18,926 ) (31,175) (32,300 ) <br />Proceeds on sale of property and equipment 603 785 21,301 <br />Net cash used in investing activities (44,328 ) (136,995 ) (71,815 ) <br />CASH FLOWS FROM FINANCING ACTIVlTIES: <br />Proceeds from borrowings under credit agreements 130,000 342,161 <br />Repaymenls of borrowings under credit and senior note agreements (24,482 ) (9,106 ) (442,013 ) <br />Proceeds from issuance of common stock and preferred stock, net of notes receivable 19,938 13,986 51,070 <br />Proceeds from issuance of stock upon exercise of stock options 3,908 4,914 5,754 <br />Proceeds from issuance of common and preferred stock units 6,479 23,071 11,]08 <br />Payments to repurchase of former employees' common stock and common stock units (44,373 ) (70,913 ) (58,560 ) <br />Payments to redcem stockholders' notes issued in acquisitions (1,002 ) (2,625 ) (595 ) <br />Proceeds from issuance of convertible prcferred stock 235,000 <br />Payments of issuance costs of convertible preferred stock (2,880 ) <br />Payments to redecm preferred stock (I J6,486) <br />Proceeds from tenninating interest rale hedge 1,139 <br />Payments of dividcnds on convertible preferred stock ~) (5,250 ) (1,900 ) <br />Net cash (used in) provided by financing activities (44,782 ) 84,077 23,798 <br />EFFECT OF EXCHANGE RATE CHANGES ON CASH 2,318 196 269 <br />NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (9,2]8 ) (6,135 ) 73,518 <br />CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 69,705 60,487 54,352 <br />CASH AND CASH EQUIVALENTS AT END OF YEAR $ 60,487 $ 54,352 $ 127,870 <br />SUPPLEMENTAL CASH FLOW INFORMATION: <br />Retirement of fully depreciated equipment (non-cash) $ 27,012 $ 11,554 $ 8,122 <br />Interesl paid $ 9,192 $ 8,788 $ 14,584 <br />Income taxes paid, net of refunds recelved $ 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 _310 12ga.... 7/5/2007 <br />