868857--11/27/2009--AECOM_TECHNOLOGY

related topics

{cost, contract, operation}

{regulation, government, change}

{personnel, key, retain}

{cost, operation, labor}

{system, service, information}

{operation, international, foreign}

{financial, litigation, operation}

{interest, director, officer}

{competitive, industry, competition}

{condition, economic, financial}

{loan, real, estate}

{property, intellectual, protect}

{regulation, change, law}

{acquisition, growth, future}

{stock, price, operating}

{provision, law, control}

{investment, property, distribution}

{product, liability, claim}

{loss, insurance, financial}

We depend on long-term government contracts, some of which are only funded on an annual basis. If appropriations for funding are not made in subsequent years of a multiple-year contract, we may not be able to realize all of our anticipated revenue and profits from that project. Governmental agencies may modify, curtail or terminate our contracts at any time prior to their completion and, if we do not replace them, we may suffer a decline in revenue. Demand for our services is cyclical and may be vulnerable to sudden economic downturns and reductions in government and private industry spending. If the economy remains depressed or further weakens, our revenue and profitability could be adversely affected. Our contracts with governmental agencies are subject to audit, which could result in adjustments to reimbursable contract costs or, if we are charged with wrongdoing, possible temporary or permanent suspension from participating in government programs. A delay in the completion of the budget process of government agencies could delay procurement of our services and have an adverse effect on our future revenue. Our business and operating results could be adversely affected by losses under fixed-price contracts. We conduct a portion of our operations through joint venture entities, over which we may have limited control. Misconduct by our employees or consultants or our failure to comply with laws or regulations applicable to our business could cause us to lose customers or lose our ability to contract with government agencies. Our defined benefit plans have significant deficits that could grow in the future and cause us to incur additional costs. Our operations worldwide expose us to legal, political and economic risks in different countries as well as currency exchange rate fluctuations that could harm our business and financial results. We operate in many different jurisdictions and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-corruption laws. We work in international locations where there are high security risks, which could result in harm to our employees and contractors or material costs to us. Failure to successfully execute our acquisition strategy may inhibit our growth. Our ability to grow and to compete in our industry will be harmed if we do not retain the continued services of our key technical and management personnel and identify, hire and retain additional qualified personnel. Our revenue and growth prospects may be harmed if we or our employees are unable to obtain the security clearances or other qualifications we and they need to perform services for our customers. Our industry is highly competitive and we may be unable to compete effectively, which could result in reduced revenue, profitability and market share. If we extend a significant portion of our credit to clients in a specific geographic area or industry, we may experience disproportionately high levels of default if those clients are adversely affected by factors particular to their geographic area or industry. Our services expose us to significant risks of liability and our insurance policies may not provide adequate coverage. Our backlog of uncompleted projects under contract is subject to unexpected adjustments and cancellations and thus, may not accurately reflect future revenue and profits. We have submitted claims to clients for work we performed beyond the initial scope of some of our contracts. If these clients do not approve these claims, our results of operations could be adversely impacted. In conducting our business, we depend on other contractors and subcontractors. If these parties fail to satisfy their obligations to us or other parties, or if we are unable to maintain these relationships, our revenue, profitability and growth prospects could be adversely affected. Our quarterly operating results may fluctuate significantly. Systems and information technology interruption could adversely impact our ability to operate. Failure to adequately protect, maintain, or enforce our rights in our intellectual property may adversely limit our competitive position. Our charter documents contain provisions that may delay, defer or prevent a change of control.

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868857--11/27/2009--AECOM_TECHNOLOGY_CORP