Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Oct. 31, 2023 | Dec. 15, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Oct. 31, 2023 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-8929 | ||
Entity Registrant Name | ABM INDUSTRIES INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-1369354 | ||
Entity Address, Address Line One | One Liberty Plaza | ||
Entity Address, Address Line Two | 7th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10006 | ||
City Area Code | 212 | ||
Local Phone Number | 297-0200 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | ABM | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,778,907,185 | ||
Entity Common Stock, Shares Outstanding (in shares) | 62,861,118 | ||
Documents Incorporated by Reference | Certain parts of the registrant’s Definitive Proxy Statement relating to the registrant’s 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000771497 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Oct. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 185 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 69.5 | $ 73 |
Trade accounts receivable, net of allowances of $25.0 and $22.6 at October 31, 2023 and 2022, respectively | 1,365 | 1,278.7 |
Costs incurred in excess of amounts billed | 139.2 | 75.8 |
Prepaid expenses | 78.5 | 82.1 |
Other current assets | 58.6 | 51.6 |
Total current assets | 1,710.7 | 1,561.2 |
Other investments | 28.8 | 14.5 |
Property, plant and equipment, net of accumulated depreciation of $326.5 and $296.9 at October 31, 2023 and 2022, respectively | 131.5 | 125.4 |
Right-of-use assets | 113.4 | 115.2 |
Other intangible assets, net of accumulated amortization of $438.3 and $459.8 at October 31, 2023 and 2022, respectively | 302.9 | 378.5 |
Goodwill | 2,491.3 | 2,485.6 |
Other noncurrent assets | 155 | 188.5 |
Total assets | 4,933.7 | 4,868.9 |
Current liabilities | ||
Current portion of debt, net | 31.5 | 181.5 |
Trade accounts payable | 299.1 | 315.5 |
Accrued compensation | 249.7 | 246.6 |
Accrued taxes—other than income | 58.9 | 124.7 |
Deferred revenue | 90.1 | 46.3 |
Insurance claims | 177 | 171.4 |
Income taxes payable | 17.9 | 6.6 |
Current portion of lease liabilities | 32.5 | 30.3 |
Other accrued liabilities | 261.2 | 230.2 |
Total current liabilities | 1,217.9 | 1,353.2 |
Long-term debt, net | 1,279.8 | 1,086.3 |
Long-term lease liabilities | 98.8 | 104.5 |
Deferred income tax liability, net | 85 | 89.7 |
Noncurrent insurance claims | 387.5 | 387.7 |
Other noncurrent liabilities | 61.1 | 126 |
Noncurrent income taxes payable | 3.7 | 4.2 |
Total liabilities | 3,133.8 | 3,151.7 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Preferred stock, $0.01 par value; 500,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 100,000,000 shares authorized; 62,847,387 and 65,587,894 shares issued and outstanding at October 31, 2023 and 2022, respectively | 0.6 | 0.7 |
Additional paid-in capital | 558.9 | 675.5 |
Accumulated other comprehensive loss, net of taxes | (9.2) | (16.2) |
Retained earnings | 1,249.6 | 1,057.2 |
Total stockholders’ equity | 1,799.9 | 1,717.2 |
Total liabilities and stockholders’ equity | $ 4,933.7 | $ 4,868.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance | $ 25 | $ 22.6 |
Property, plant and equipment, accumulated depreciation | 326.5 | 296.9 |
Other intangible assets, accumulated amortization | $ 438.3 | $ 459.8 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 62,847,387 | 65,587,894 |
Common stock, shares outstanding (in shares) | 62,847,387 | 65,587,894 |
CONSOLIDATED STATEMENTS OF COMR
CONSOLIDATED STATEMENTS OF COMREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 8,096.4 | $ 7,806.6 | $ 6,228.6 |
Operating expenses | 7,037.6 | 6,757.5 | 5,258.2 |
Selling, general and administrative expenses | 572.8 | 628.3 | 719.2 |
Amortization of intangible assets | 76.5 | 72.1 | 45 |
Operating profit | 409.5 | 348.8 | 206.3 |
Income from unconsolidated affiliates | 3.9 | 2.4 | 2.1 |
Interest expense | (82.3) | (41.1) | (28.6) |
Income before income taxes | 331.1 | 310 | 179.8 |
Income tax provision | (79.7) | (79.6) | (53.5) |
Net income | 251.3 | 230.4 | 126.3 |
Other comprehensive income | |||
Interest rate swaps | (0.5) | 36.7 | 4.5 |
Foreign currency translation and other | 7.3 | (19.8) | 5.3 |
Income tax provision | 0.1 | (10.5) | (1.5) |
Comprehensive income | $ 258.1 | $ 236.9 | $ 134.5 |
Net income per common share | |||
Basic (in USD per share) | $ 3.81 | $ 3.44 | $ 1.87 |
Diluted (in USD per share) | $ 3.79 | $ 3.41 | $ 1.86 |
Weighted-average common and common equivalent shares outstanding | |||
Basic (in shares) | 66 | 67.1 | 67.4 |
Diluted (in shares) | 66.3 | 67.5 | 68 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss, Net of Taxes | Retained Earnings |
Balance, beginning of year (in shares) at Oct. 31, 2020 | 66,700,000 | ||||
Balance, beginning of year at Oct. 31, 2020 | $ 0.7 | $ 724.1 | $ (30.8) | $ 806.4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued under employee stock purchase and share-based compensation plans (in shares) | 600,000 | ||||
Stock issued under employee stock purchase and share-based compensation plans | $ 0 | (6.7) | |||
Share-based compensation expense | 33.5 | ||||
Repurchase of common stock, including excise taxes (in shares) | 0 | ||||
Repurchase of common stock, including excise taxes | $ 0 | 0 | |||
Other comprehensive income | 8.2 | ||||
Net income | $ 126.3 | 126.3 | |||
Dividends | |||||
Common stock ($0.88, $0.78, and $0.76 per share) | (51) | ||||
Stock issued under share-based compensation plans | (1.5) | ||||
Balance, end of year (in shares) at Oct. 31, 2021 | 67,300,000 | ||||
Balance, end of year at Oct. 31, 2021 | $ 1,609.2 | $ 0.7 | 750.9 | (22.5) | 880.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued under employee stock purchase and share-based compensation plans (in shares) | 600,000 | ||||
Stock issued under employee stock purchase and share-based compensation plans | $ 0 | (8.4) | |||
Share-based compensation expense | 30.5 | ||||
Repurchase of common stock, including excise taxes (in shares) | (2,300,000) | (2,300,000) | |||
Repurchase of common stock, including excise taxes | $ (97.5) | $ 0 | (97.5) | ||
Other comprehensive income | 6.3 | ||||
Net income | $ 230.4 | 230.4 | |||
Dividends | |||||
Common stock ($0.88, $0.78, and $0.76 per share) | (51.9) | ||||
Stock issued under share-based compensation plans | (1.5) | ||||
Balance, end of year (in shares) at Oct. 31, 2022 | 65,587,894 | 65,500,000 | |||
Balance, end of year at Oct. 31, 2022 | $ 1,717.2 | $ 0.7 | 675.5 | (16.2) | 1,057.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued under employee stock purchase and share-based compensation plans (in shares) | 600,000 | ||||
Stock issued under employee stock purchase and share-based compensation plans | $ 0 | (9) | |||
Share-based compensation expense | 30.5 | ||||
Repurchase of common stock, including excise taxes (in shares) | (3,300,000) | (3,300,000) | |||
Repurchase of common stock, including excise taxes | $ (137.1) | $ (0.1) | (138.1) | ||
Other comprehensive income | 6.9 | ||||
Net income | $ 251.3 | 251.3 | |||
Dividends | |||||
Common stock ($0.88, $0.78, and $0.76 per share) | (57.5) | ||||
Stock issued under share-based compensation plans | (1.5) | ||||
Balance, end of year (in shares) at Oct. 31, 2023 | 62,847,387 | 62,800,000 | |||
Balance, end of year at Oct. 31, 2023 | $ 1,799.9 | $ 0.6 | $ 558.9 | $ (9.2) | $ 1,249.6 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends (in USD per share) | $ 0.88 | $ 0.78 | $ 0.76 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 251.3 | $ 230.4 | $ 126.3 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 120.7 | 112.4 | 89.9 |
Impairment loss on fixed assets | 0 | 0 | 9.1 |
Deferred income taxes | (4.9) | 67.7 | (48) |
Share-based compensation expense | 30.5 | 30.5 | 33.5 |
Provision for/(Recovery of) bad debt | 3 | (7.7) | 0.6 |
Amortization of accumulated other comprehensive gain on interest rate swaps | 0 | (4.8) | (6.4) |
Discount accretion on insurance claims | 0.4 | 0.1 | 0.1 |
(Gain)/Loss on sale of assets | (0.1) | (0.8) | 0.2 |
Income from unconsolidated affiliates | (3.9) | (2.4) | (2.1) |
Distributions from unconsolidated affiliates | 1.9 | 1.9 | 1.9 |
Change in fair value of contingent consideration | (45.6) | 0 | 0 |
Changes in operating assets and liabilities, net of effects of acquisitions | |||
Trade accounts receivable and costs incurred in excess of amounts billed | (152.7) | (143.8) | (124.5) |
Prepaid expenses and other current assets | (7.4) | 19.7 | 6.8 |
Right-of-use assets | 1.8 | 14.7 | 19.3 |
Other noncurrent assets | 33.8 | (21.2) | 13.8 |
Trade accounts payable and other accrued liabilities | (3.8) | (143) | 265.7 |
Long-term lease liabilities | (5.7) | (15.2) | (16.3) |
Insurance claims | 5 | (17.4) | (28.4) |
Income taxes payable | 15.1 | (31.8) | 8.3 |
Other noncurrent liabilities | 3.8 | (69) | (35.4) |
Total adjustments | (8) | (210) | 188 |
Net cash provided by operating activities | 243.3 | 20.4 | 314.3 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (52.6) | (50.8) | (34.3) |
Proceeds from sale of assets | 2.9 | 6 | 4.4 |
Investments in equity securities | (12.4) | (2.1) | 0 |
Purchase of business, net of cash acquired | 0 | (194.6) | (710.2) |
Net cash used in investing activities | (62.1) | (241.5) | (740) |
Cash flows from financing activities | |||
Taxes withheld from issuance of share-based compensation awards, net | (10.5) | (9.9) | (8.1) |
Repurchases of common stock, including excise taxes | (138.1) | (97.5) | 0 |
Dividends paid | (57.5) | (51.9) | (51) |
Deferred financing costs paid | 0 | 0 | (6.4) |
Borrowings from debt | 1,178.5 | 1,479.4 | 357.7 |
Repayment of borrowings from debt | (1,136) | (1,096.9) | (194.2) |
Changes in book cash overdrafts | (20.3) | 4.3 | (17.9) |
Financing of energy savings performance contracts | 0.5 | 9.9 | 15.1 |
Repayment of finance lease obligations | (3) | (1.9) | (2.8) |
Net cash (used in) provided by financing activities | (186.3) | 235.5 | 92.4 |
Effect of exchange rate changes on cash and cash equivalents | 1.6 | (4.2) | 1.9 |
Net (decrease) increase in cash and cash equivalents | (3.5) | 10.2 | (331.4) |
Cash and cash equivalents at beginning of year | 73 | 62.8 | 394.2 |
Cash and cash equivalents at end of year | 69.5 | 73 | 62.8 |
Supplemental cash flow information | |||
Income tax payments, net | 69.1 | 46.4 | 93.5 |
Interest paid on credit facility | $ 89.4 | $ 28.9 | $ 14.3 |
THE COMPANY AND NATURE OF OPERA
THE COMPANY AND NATURE OF OPERATIONS | 12 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
THE COMPANY AND NATURE OF OPERATIONS | THE COMPANY AND NATURE OF OPERATIONS ABM is a leading provider of integrated facility services with a mission to make a difference, every person, every day . We are organized into four industry groups and one Technical Solutions segment: Through these groups, we offer janitorial, facilities engineering, parking, and specialized mechanical and electrical technical solutions, on a standalone basis or in combination with other services. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the SEC, specifically Regulation S-X and the instructions to Form 10-K. Unless otherwise indicated, all references to years are to our fiscal year, which ends on October 31. The Financial Statements include the accounts of ABM and all of our consolidated subsidiaries. We account for ABM’s investments in unconsolidated affiliates under the equity method of accounting. We include the results of acquired businesses in the Consolidated Statements of Comprehensive Income from their respective acquisition dates. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of consolidated financial statements in accordance with U.S. GAAP requires our management to make certain estimates that affect reported amounts. We base our estimates on historical experience, known or expected trends, independent valuations, and various other assumptions that we believe to be reasonable under the circumstances. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. We round amounts in the Financial Statements to millions and calculate all percentages and per-share data from the underlying whole-dollar amounts. Thus, certain amounts may not foot, crossfoot, or recalculate based on reported numbers due to rounding. Cash and Cash Equivalents We consider all highly liquid securities with an original maturity of three months or less to be cash and cash equivalents. As part of our cash management system, we use “zero balance” accounts to fund our disbursements. Under this system, at the end of each day the bank balance is zero, while the book balance is usually a negative amount due to reconciling items, such as outstanding checks. We report the changes in these book cash overdrafts as cash flows from financing activities. Trade Accounts Receivable and Costs Incurred in Excess of Amounts Billed Trade accounts receivable arise from services provided to our clients and are usually due and payable on varying terms from receipt of the invoice to net 90 days, with the exception of certain Technical Solutions project receivables that may have longer collection periods. These receivables are recorded at the invoiced amount and normally do not bear interest. In addition, our trade accounts receivable include unbilled receivables, such as invoices for services that have been provided but are not yet billed. Costs incurred in excess of amounts billed arise from Technical Solutions project contracts that typically provide for a schedule of billings or invoices to the client based on our performance to date of specific tasks inherent in the fulfillment of our performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, revenues generally differ from amounts that can be billed or invoiced to the client at any point during the contract. Allowance for Doubtful Accounts We determine the allowance for doubtful accounts based on historical write-offs, known or expected trends, and the identification of specific balances deemed uncollectible. For the specifically identified balances, we establish the reserve upon the earlier of a client’s inability to meet its financial obligations or after a period of 12 months, unless our management believes such amounts will ultimately be collectible. Sales Allowance In connection with our service contracts, we periodically issue credit memos to our clients that are recorded as a reduction in revenues and an increase to the allowance for billing adjustments. These credits can result from client vacancy discounts, job cancellations, property damage, and other items. We estimate our potential future losses on these client receivables based on an analysis of the historical rate of sales adjustments (credit memos, net of re-bills) and known or expected trends. Other Current Assets At October 31, 2023 and 2022, other current assets primarily consisted of other receivables, short-term insurance recoverables, and capitalized commissions. Other Investments At October 31, 2023 and 2022, other investments primarily consisted of preferred equity investments and investments in unconsolidated affiliates and were $28.8 million and $14.5 million, respectively. We did not recognize any impairment charges on these investments in 2023, 2022, or 2021. Preferred Equity investments We own non-controlling interests (generally under 20%) in entities that provide specialized services. Our investments do not have readily determinable fair values; therefore, we measure the investment at initial cost less impairment, if any. Investments in Unconsolidated Affiliates We own non-controlling interests (generally 20% to 50%) in certain affiliated entities that predominantly provide facility solutions to governmental and commercial clients, primarily in the United States and the Middle East. We have significant influence over such investments and account for them under the equity method of accounting. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable. An impairment loss is recognized to the extent that the estimated fair value of the investment is less than its carrying amount and we determine that the impairment is other than temporary. Property, Plant and Equipment We record property, plant and equipment at cost. Repairs and maintenance expenditures are expensed as incurred. In contrast, we capitalize major renewals or replacements that substantially extend the useful life of an asset. We determine depreciation for financial reporting purposes using the straight-line method over the following estimated useful lives: Category Years Computer equipment and software 3–7 Machinery and other equipment 3–5 Transportation equipment 1.5–10 Buildings 10–40 Furniture and fixtures 5 In addition, we depreciate assets under finance leases and leasehold improvements over the shorter of their estimated useful lives or the remaining lease term. Upon retirement or sale of an asset, we remove the cost and accumulated depreciation from our Consolidated Balance Sheets. When applicable, we record corresponding gains or losses within the accompanying Consolidated Statements of Comprehensive Income. Leases We account for our leases in accordance with ASU 2016-02, Leases (Topic 842). Topic 842 requires lessees to recognize substantially all leases on their balance sheet as a right-of-use (“ROU”) asset and a lease liability. We made the accounting policy election to not recognize leases with an initial term of 12 months or less on the balance sheet and will expense payments for such leases on a straight-line basis over the lease term. We also elected to not separate lease components from non-lease components. We enter into various noncancelable l ease agreements for office space, parking facilities, warehouses, vehicles, and equipment used in the normal course of business. We determine if an arrangement is a lease at inception and begin recording lease activity at the commencement date. ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. The present value of future lease payments is determined using our incremental borrow rate (“IBR”) unless the implicit rate in the lease is readily determinable. Our IBR is equal to our rate of interest adjusted for term differences. This IBR is applied to the minimum lease payments within each lease agreement to determine the amounts of our ROU assets and lease liabilities. Our lease terms range from one Lease agreements may contain rent escalation clauses, rent holidays, or certain landlord incentives, including tenant improvement allowances. ROU assets include amounts for scheduled rent increases and are reduced by lease incentive amounts. Certain of our lease agreements include variable rent payments consisting primarily of rental payments adjusted periodically for inflation, maintenance, and utilities . These costs are expensed as incurred. Certain of our parking arrangements also contain variable rent payments that are a percentage of parking services revenue based on contractual levels. We record contingent rent as it becomes probable that specified targets will be met. Vari able rent lease components are not included in the lease liability. Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853) : Determining the Customer of the Operation Services , are excluded from the scope of Topic 842. Lease costs associated with these arrangements are recorded as a reduction of revenues. See Note 4, “Revenues,” for further discussion. Goodwill and Other Intangible Assets Goodwill represents the excess purchase price of acquired businesses over the fair value of the assets acquired and liabilities assumed. We have elected to make the first day of our fourth quarter, August 1, the annual impairment assessment date for goodwill. However, we could be required to evaluate the recoverability of goodwill more often if impairment indicators exist. Goodwill is tested for impairment at a “reporting unit” level by performing either a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We may elect not to perform the qualitative assessment for some or all reporting units and instead perform a quantitative test under which we estimate the fair value using a weighting of fair values derived from an income approach and a market approach. The discounted estimates of future cash flows include significant management assumptions, such as revenue growth rates, operating margins, weighted average cost of capital, and future economic and market conditions. Other intangible assets primarily consist of acquired customer contracts and relationships that are amortized using the sum-of-the-years’-digits method over their useful lives, consistent with the estimated useful life considerations used in the determination of their fair values. This accelerated method of amortization reflects the pattern in which the economic benefits from the intangible assets of customer contracts and relationships are expected to be realized. We amortize other non-customer acquired intangibles using a straight-line method of amortization. We evaluate other intangible assets, as well as our long-lived assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When this occurs, a recoverability test is performed that compares the projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying amount. If the projected undiscounted cash flows are less than the carrying amount, then we calculate an impairment loss. The impairment loss calculation compares the fair value, which is based on projected discounted cash flows, to the carrying value. See Note 9, “Goodwill and Other Intangible Assets,” for further information on goodwill, other intangible assets, and impairment charges. Other Noncurrent Assets At October 31, 2023 and 2022, other noncurrent assets primarily consisted of long-term insurance recoverables, interest rate swap assets, capitalized commissions, cloud computing arrangements, prepayments to carriers for future insurance claims, and insurance deposits. Federal Energy Savings Performance Contract Receivables As part of our Technical Solutions business, we enter into ESPCs with the federal government pursuant to which we agree to develop, design, engineer, and construct a project and to guarantee that the project will satisfy agreed-upon performance standards. ESPC receivables represent the amount to be paid by various federal government agencies for work we have satisfactorily performed under specific ESPCs. We assign certain of our rights to receive those payments to unaffiliated third parties that provide construction financing, which we record as a liability, for such contracts. This construction financing is recorded as cash flows from financing activities, while the use of the cash received to pay project costs under these arrangements is classified as operating cash flows. The ESPC receivable is recognized as revenue as each project is constructed. Upon completion and acceptance of the project by the government and upon satisfaction of true sale criteria, the assigned ESPC receivable from the government and corresponding ESPC liability are eliminated from our consolidated financial statements. Fair Value of Financial Instruments Fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets; Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and Level 3 – Significant inputs to the valuation model are unobservable. We evaluate assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level at which to classify them for each reporting period. Some non-financial assets are measured at fair value on a non-recurring basis only in certain circumstances, including the event of impairment. See Note 7, “Fair Value of Financial Instruments,” for the fair value hierarchy table and for details on how we measure fair value for our assets and liabilities. Insurance Reserves We use a combination of insured and self-insurance programs to cover workers’ compensation, general liability, automobile liability, property damage, and other insurable risks. Insurance claim liabilities represent our estimate of retained risks without regard to insurance coverage. We retain a substantial portion of the risk related to certain workers’ compensation and medical claims. Liabilities associated with these losses include estimates of both filed claims and IBNR Claims. With the assistance of third-party actuaries, we review our estimate of ultimate losses for IBNR Claims on a quarterly basis and adjust our required self-insurance reserves as appropriate. See Note 10, “Insurance,” for further details on the quarterly review procedures. As part of this evaluation, we review the status of existing and new claim reserves as established by third-party claims administrators. The third-party claims administrators establish the case reserves based upon known factors related to the type and severity of the claims, demographic factors, legislative matters, and case law, as appropriate. We compare actual trends to expected trends and monitor claims developments. The specific case reserves estimated by the third-party administrators are provided to an actuary who assists us in projecting an actuarial estimate of the overall ultimate losses for our self-insured or high deductible programs, which includes the case reserves plus an actuarial estimate of reserves required for additional developments, such as IBNR Claims. We utilize the results of actuarial studies to estimate our insurance rates and insurance reserves for future periods and to adjust reserves, if appropriate, for prior years. In general, our insurance reserves are recorded on an undiscounted basis. We allocate current-year insurance expense to our operating segments based upon their underlying exposures, while actuarial adjustments related to prior year claims are recorded within Corporate expenses. We classify claims as current or long-term based on the expected settlement date. Estimated insurance recoveries related to recorded liabilities are reflected as assets in our Consolidated Balance Sheets when we believe the receipt of such amounts is probable. Other Accrued Liabilities At October 31, 2023 and 2022, other accrued liabilities primarily consisted of contract liabilities, employee benefits, ESPC liabilities, unclaimed property, legal fees and settlements, and dividends payable. Other Noncurrent Liabilities At October 31, 2023 and 2022, other noncurrent liabilities primarily consisted of deferred compensation, contingent consideration liability, long-term finance leases, and retirement plan liabilities. Contracts with Customers We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Once a contract is identified, we evaluate whether it is a combined or single contract and whether it should be accounted for as more than one performance obligation. Generally, most of our contracts are cancelable by either party without a substantive penalty, and the majority of our contracts have a notification period of 30 to 90 days. If a contract includes a cancellation clause, the remaining contract term is limited to the required termination notice period. At contract inception, we assess the services promised to our customers and identify a performance obligation for each promise to transfer to the customer a service, or a bundle of services, that is distinct. To identify the performance obligation, we consider all of our services promised in the contract, regardless of whether they are explicitly stated or are implied by customary business practices. The majority of our contracts contain multiple promises that represent an integrated bundle of services comprised of activities that may vary over time; however, these activities fulfill a single integrated performance obligation since we perform a continuous service that is substantially the same and has the same pattern of transfer to the customer. Our performance obligations are primarily satisfied over time as we provide the related services. We allocate the contract transaction price to this single performance obligation and recognize revenue as the services are performed, as further described in “Contract Types” below. Certain arrangements involve variable consideration (primarily per transaction fees, reimbursable expenses, and sales-based royalties). We do not estimate the variable consideration for these arrangements; rather, we recognize these variable fees in the period they are earned. Some of our contracts, often related to Airline Services, may also include performance incentives based on variable performance measures that are ascertained exclusively by future performance and therefore cannot be estimated at contract inception and are recognized as revenue once known and mutually agreed upon. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current, and forecasted) that is reasonably available to us. We primarily account for our performance obligations under the series guidance, using the as-invoiced practical expedient when applicable. We apply the as-invoiced practical expedient to record revenue as the services are provided, given the nature of the services provided and the frequency of billing under the customer contracts. Under this practical expedient, we recognize revenue in an amount that corresponds directly with the value to the customer of our performance completed to date and for which we have the right to invoice the customer. We typically bill customers on a monthly basis and have the right to consideration from customers in an amount that corresponds directly with the performance obligation satisfied to date. The time between completion of the performance obligation and collection of cash is generally 30 to 60 days. Sales-based taxes are excluded from revenue. Contracts generally can be modified to account for changes in specifications and requirements. We consider contract modifications to exist when the modification either changes the consideration, creates new performance obligations, or changes the existing scope of the contract and related performance obligations. Historically, contract modifications have been for services that are not distinct from the existing contract, since we are providing a bundle of services that are highly interrelated, and are therefore treated as if they were part of that existing contract. Such modifications are generally accounted for retrospectively as part of the existing contract. Contract Types We have arrangements under various contract types, as described below. Monthly Fixed-Price Monthly fixed-price arrangements are contracts in which the client agrees to pay a fixed fee every month over a specified contract term. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Square-Foot Square-foot arrangements are contracts in which the client agrees to pay a fixed fee every month based on the actual square footage serviced over a specified contract term. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Cost-Plus Cost-plus arrangements are contracts in which the clients reimburse us for the agreed-upon amount of wages and benefits, payroll taxes, insurance charges, and other expenses associated with the contracted work, plus a profit margin. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Work Orders Work orders generally consist of supplemental services requested by clients outside of the standard service specification and include cleanup after tenant moves, construction cleanup, flood cleanup, and snow removal. The nature of these short-term contracts involves performing one-off type services, and revenue is recognized at the agreed-upon contractual amount over time as the services are provided, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Transaction-Price Transaction-price contracts are arrangements in which customers are billed a fixed price for each transaction performed on a monthly basis (e.g., wheelchair passengers served, airplane cabins cleaned). We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Hourly Hourly arrangements are contracts in which the client is billed a fixed hourly rate for each labor hour provided. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Management Reimbursement Under management reimbursement arrangements, we manage a parking facility for a management fee and pass through the revenue and expenses associated with the facility to the owner. We measure progress toward satisfaction of the performance obligation over time as the services are provided. Under these contracts we recognize both revenues and expenses, in equal amounts, that are directly reimbursed from the property owner for operating expenses, as such expenses are incurred. Such revenues do not include gross customer collections at the managed locations, because they belong to the property owners. We have determined we are the principal in these transactions, because the nature of our performance obligation is for us to provide the services on behalf of the customer and we have control of the promised services before they are transferred to the customer. Management reimbursement revenue was $302.3 million, $280.6 million, and $240.3 million during 2023, 2022, and 2021, respectively. Leased Location Under leased location parking arrangements, we pay a fixed amount of rent, plus a percentage of revenues derived from monthly and transient parkers, to the property owner. We retain all revenues received and we are responsible for most operating expenses incurred. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Rental expense and certain other expenses under contracts that meet the definition of service concession arrangements are recorded as a reduction of revenue. Allowance Under allowance parking arrangements, we are paid a fixed amount or hourly rate to provide parking services, and we are responsible for certain operating expenses that are specified in the contract. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual rate over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Energy Savings Contracts and Fixed-Price Repair and Refurbishment Under energy savings contracts and fixed-price repair and refurbishment arrangements, we agree to develop, design, engineer, and construct a project. Additionally, as part of bundled energy solutions arrangements, we guarantee the project will satisfy agreed-upon performance standards. We use the cost-to-cost method, which compares the actual costs incurred to date with the current estimate of total costs to complete, to measure the satisfaction of the performance obligation and recognize revenue as work progresses and we incur costs on our contracts; we believe this method best reflects the transfer of control to the customer. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments. Equipment purchased for these projects is project-specific and considered a value-added element to our work. Equipment costs are incurred when the title is transferred to us, typically upon delivery to the work site. Revenue for uninstalled equipment is recognized at cost and the associated margin is deferred until installation is substantially complete. We recognize revenue over time for all of our services as we perform them, because (i) control continuously transfers to the customer as work progresses, or (ii) we have the right to bill the customer as costs are incurred. The customer typically controls the work in process, as evidenced either by contractual termination clauses or by our rights to payment for work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to us. Certain project contracts include a schedule of billings or invoices to the customer based on our job-to-date percentage of completion of specific tasks inherent in the fulfillment of our performance obligation(s) or in accordance with a fixed billing schedule. Fixed billing schedules may not precisely match the actual costs incurred. Therefore, revenue recognized may differ from amounts that can be billed or invoiced to the customer at any point during the contract, resulting in balances that are considered revenue recognized in excess of amounts billed or amounts billed in excess of revenue recognized. Advanced payments from our customers generally do not represent a significant financing component as the payments are used to meet working capital demands that can be higher in the early stages of a contract, as well as to protect us from our customer failing to meet its obligations under the contract. Certain projects include service maintenance agreements under which existing systems are repaired and maintained for a specific period of time. We generally recognize revenue under these arrangements over time. Our service maintenance agreements are generally one-year renewable agreements. Franchise We franchise certain engineering services through individual and area franchises under the Linc Service and TEGG brands, which are part of ABM Technical Solutions. Initial franchise fees result from the sale of a franchise license and include the use of the name, trademarks, and proprietary methods. The franchise license is considered symbolic intellectual property, and revenue related to the sale of this right is recognized at the agreed-upon contractual amount over the term of the initial franchise agreement. Royalty fee revenue consists of sales-based royalties received as part of the consideration for the franchise right, which is calculated as a percentage of the franchisees’ revenue. We recognize royalty fee revenue at the agreed-upon contractual rates over time as the customer revenue is generated by the franchisees. A receivable is recognized for an estimate of the unreported royalty fees, which are reported and remitted to us in arrears. Microgrid Systems Installation We provide electrical contracting services for energy related products such as the installation of solar solutions, battery storage, distributed generation, and other specialized electric trades. We use the cost-to-cost method, which compares the actual costs incurred to date with the current estimate of total costs to complete, to measure the satisfaction of the performance obligation and recognize revenue as work progresses and we incur costs on our contracts; we believe this method best reflects the transfer of control to the customer. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments. Costs to Obtain a Contract with a Customer We capitalize the incremental costs of obtaining a contract with a customer, primarily commissions, as contract assets and recognize the expense on a straight-line basis over a weighted average expected customer relationship period. Capitalized commissions are classified as current or noncurrent based on the timing of when we expect to recognize the expense. Contract Balances The timing of revenue recognition, billings, and cash collections results in contract assets and contract liabilities, as further explained below. The timing of revenue recognition may differ from the timing of invoicing to customers. If a contract includes a cancellation clause that allows for the termination of the contract by either party without a substantive penalty, then the contract term is limited to the termination notice period. Contract assets primarily consist of billed trade rece |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Oct. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisition of RavenVolt On September 1, 2022, we completed the acquisition of all of the equity interests of RavenVolt, Inc. (“RavenVolt”), a nationwide provider of advanced turn-key microgrid systems utilized by diversified commercial and industrial customers, national retailers, utilities, and municipalities. RavenVolt’s operations are included within our Technical Solutions segment. The transaction met the definition of a business combination. We applied the acquisition method of accounting. The initial purchase price for the acquisition was approximately $170.0 million in cash at closing (subject to customary working capital and net debt adjustments) plus the potential of post-closing contingent consideration of up to $280.0 million. The post closing contingent consideration is payable in cash in calendar years 2024, 2025, and 2026 if RavenVolt’s earnings before interest, taxes, depreciation, and amortization (EBITDA), as defined in the RavenVolt merger agreement, meets or exceeds certain defined targets. The maximum contingent consideration that is payable in calendar years 2024, 2025, and 2026 is $75.0 million, $75.0 million, and $130.0 million, respectively. If the EBITDA achieved for calendar years 2023 - 2025 cumulatively meets the defined EBITDA targets, the entire $280.0 million would be paid in calendar year 2026, minus any earn-out payments made in 2024 and 2025. To estimate the fair value of the contingent consideration on the date of acquisition, we used the Real Options method. The key assumptions used in our valuation were: i) forecast of revenues and EBITDA margins; ii) the volatility associated with the EBITDA; iii) risk-adjusted discount rate applied to forecasted EBITDA; and (iv) the credit-adjusted discount rate related to the payment of the contingent consideration. A simulation of one million scenarios was performed with the assistance of a third-party valuation specialist, resulting in a fair value for the cumulative contingent consideration for calendar years 2023 through 2025 totaling $59.0 million. There were no material adjustments to the fair value of the contingent consideration from September 1, 2022 to October 31, 2022. At October 31, 2023, the estimate of the fair value of the contingent consideration was $13.4 million. Results of operations subsequent to the acquisition date and changes to management’s forecasts, as well as the accretion of the liability, resulted in a total decrease in fair value of $45.6 million. This decrease is recognized within the “Selling, general and administrative expenses” of the Consolidated Statements of Comprehensive Income. We do not expect the RavenVolt business to achieve the financial targets for calendar year 2023, and as such we do not expect contingent consideration to be payable in the next 12 months. Final Acquisition Accounting The assets acquired and liabilities assumed were recognized at their acquisition date fair values. Goodwill arising from the RavenVolt Acquisition is not deductible for tax reporting purposes. There were no material changes made to preliminary acquisition accounting. The following table summarizes the final acquisition accounting: (in millions) Cash and cash equivalents $ 29.0 Trade accounts receivable 16.5 Other assets 3.8 Intangible assets 16.7 Goodwill 207.4 Trade accounts payable (5.2) Deferred revenue (31.6) Other accrued liabilities (3.2) Deferred income tax liability, net (4.5) Net assets acquired $ 228.9 Acquisition of Momentum Effective April 7, 2022, we acquired Maybin Support Services Limited, Momentum Support Limited (UK), and Momentum Property Support Services Limited (collectively “Momentum”), a leading independent provider of facility services, primarily janitorial, across Ireland and Northern Ireland, for a purchase price of approximately $54.8 million. We have completed the acquisition accounting, and recorded final goodwill and intangibles of $42.9 million and $10.4 million, respectively. The total assets acquired, excluding goodwill and intangibles, and liabilities assumed amounted to $20.4 million and $18.9 million, respectively. Goodwill is not deductible for income tax purposes. There were no material changes made to preliminary acquisition accounting. Disposition of Assets During 2022, we sold a group of customer contracts for healthcare technology management within our Technical Solutions segment for $8.5 million and recognized a gain of $7.6 million, which is included in “ Selling, general and administrative expenses Acquisition of Able On September 30, 2021, we completed the Able Acquisition for a net cash purchase price of $741.7 million. Pursuant to the terms of the purchase agreement, approximately $12.1 million of the cash consideration was placed into escrow accounts, of which approximately $8.2 million was placed into escrow to satisfy any applicable indemnification claims for a period of 12 months. To fund the cash purchase price, we used cash on hand and borrowed $325.0 million on September 30, 2021, at an average interest rate of 1.58% from our revolving line of credit. |
REVENUES
REVENUES | 12 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues We generate revenues under several types of contracts, which are further described in Note 2, “Basis of Presentation and Significant Accounting Policies.” Generally, the type of contract is determined by the nature of the services provided by each of our major service lines throughout our reportable segments; therefore, we disaggregate revenues from contracts with customers into major service lines. We have determined that disaggregating revenues into these categories best depicts how the nature, amount, timing, and uncertainty of revenues and cash flows are affected by economic factors. Our reportable segments are B&I, M&D, Education, Aviation, and Technical Solutions, as described in Note 17, “Segment and Geographic Information.” Year Ended October 31, 2023 (in millions) B&I M&D Education Aviation Technical Solutions Total Major Service Line Janitorial (1) $ 2,745.2 $ 1,330.8 $ 774.8 $ 146.9 $ — $ 4,997.7 Parking (2) 408.2 42.5 0.8 329.3 — 780.8 Facility Services (3) 936.0 153.4 104.8 32.0 — 1,226.2 Building & Energy Solutions (4) — — — — 674.2 674.2 Airline Services (5) — — — 417.5 — 417.5 Total $ 4,089.4 $ 1,526.7 $ 880.4 $ 925.7 $ 674.2 $ 8,096.4 Year Ended October 31, 2022 (in millions) B&I M&D Education Aviation Technical Solutions Total Major Service Line Janitorial (1) $ 2,746.6 $ 1,242.4 $ 720.6 $ 119.8 $ — $ 4,829.4 Parking (2) 354.3 36.6 0.9 311.7 — 703.6 Facility Services (3) 995.0 166.2 113.2 28.3 — 1,302.7 Building & Energy Solutions (4) — — — — 626.8 626.8 Airline Services (5) — — — 344.2 — 344.2 Total $ 4,095.9 $ 1,445.2 $ 834.7 $ 804.0 $ 626.8 $ 7,806.6 (1) Janitorial arrangements provide a wide range of essential cleaning services for commercial office buildings, airports and other transportation centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, and stadiums and arenas. These arrangements are often structured as monthly fixed-price, square-foot, cost-plus, and work order contracts. (2) Parking arrangements provide parking and transportation services for clients at various locations, including airports and other transportation centers, commercial office buildings, educational institutions, health facilities, hotels, and stadiums and arenas. These arrangements are structured as management reimbursement, leased location, and allowance contracts. Certain of these arrangements are considered service concession agreements and are accounted for under the guidance of Topic 853; accordingly, rent expense related to these arrangements is recorded as a reduction of the related parking service revenues. (3) Facility Services arrangements provide onsite mechanical engineering and technical services and solutions relating to a broad range of facilities and infrastructure systems that are designed to extend the useful life of facility fixed assets, improve equipment operating efficiencies, reduce energy consumption, lower overall operational costs for clients, and enhance the sustainability of client locations. These arrangements are generally structured as monthly fixed-price, cost-plus, and work order contracts. (4) Building & Energy Solutions arrangements provide custom energy solutions, including microgrid systems installation, electrical, HVAC, lighting, electric vehicle charging station installation, and other general maintenance and repair services for clients in the public and private sectors and are generally structured as Energy Savings and Fixed-Price Repair and Refurbishment contracts. We also franchise certain operations under franchise agreements relating to our Linc Network and TEGG brands pursuant to franchise contracts. (5) Airline Services arrangements support airlines and airports with services such as passenger assistance, catering logistics, and airplane cabin maintenance. These arrangements are often structured as monthly fixed-price, cost-plus, transaction price, and hourly contracts. Remaining Performance Obligations At October 31, 2023, performance obligations that were unsatisfied or partially unsatisfied for which we expect to recognize revenue totaled $332.8 million. We expect to recognize revenue on approximately 69% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter, based on our estimates of project timing. These amounts exclude variable consideration primarily related to: (i) contracts where we have determined that the contract consists of a series of distinct service periods and revenues are based on future performance that cannot be estimated at contract inception; (ii) parking contracts where we and the customer share the gross revenues or operating profit for the location; and (iii) contracts where transaction prices include performance incentives that are based on future performance and therefore cannot be estimated at contract inception. We apply the practical expedient that permits exclusion of information about the remaining performance obligations with original expected durations of one year or less. Contract Balances The following tables present the balances in our contract assets and contract liabilities: As of October 31, (in millions) 2023 2022 Contract assets Billed trade receivables (1) $ 1,219.6 $ 1,138.8 Unbilled trade receivables (1) 170.4 162.5 Costs incurred in excess of amounts billed (2) 139.2 75.8 Capitalized commissions (3) 30.2 30.9 (1) Included in “Trade accounts receivable, net” on the Consolidated Balance Sheets. The fluctuations correlate directly to the execution of new customer contracts and to invoicing and collections from customers in the normal course of business. (2) Fluctuation is primarily due to the timing of payments on our contracts measured using the cost-to-cost method of revenue recognition. (3) Included in “Other current assets” and “Other noncurrent assets” on the Consolidated Balance Sheets. During the year ended October 31, 2023, we capitalized $14.5 million of new costs and amortized $15.2 million of previously capitalized costs. There was no impairment loss recorded on the costs capitalized. (in millions) Year Ended Contract liabilities (1) Balance at beginning of year $ 79.6 Additional contract liabilities 335.9 Recognition of deferred revenue (274.3) Balance at end of year $ 141.2 (1) |
LEASES
LEASES | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease assets and liabilities and their classification on our Consolidated Balance Sheets were as follows: As of October 31, (in millions) Classification 2023 2022 Lease assets Operating leases Right-of-use assets $ 113.4 $ 115.2 Finance leases Property, plant and equipment, net (1) 15.2 10.0 Total lease assets $ 128.6 $ 125.2 Lease liabilities Current liabilities Operating leases Current portion of lease liabilities $ 32.5 $ 30.3 Finance leases Other accrued liabilities 3.1 2.8 Noncurrent liabilities Operating leases Long-term lease liabilities 98.8 104.5 Finance leases Other noncurrent liabilities 11.1 6.4 Total lease liabilities $ 145.5 $ 144.1 (1) Finance lease assets are recorded net of accumulated amortization of $18.9 million and $16.9 million as of October 31, 2023 and October 31, 2022, respectively. The components of lease costs and classification within the Consolidated Statements of Comprehensive Income were as follows: Years Ended October 31, (in millions) 2023 2022 Operating lease costs: Operating expenses (1)(2) $ 70.6 $ 60.2 Selling, general and administrative expenses (3) 25.4 25.7 Finance lease costs: Operating expenses (4) 2.4 1.7 Interest expense (5) 0.5 0.4 Total lease costs $ 99.0 $ 88.1 (1) Related to certain parking arrangements. (2) Includes short-term lease costs and variable lease costs. (3) Includes short-term lease costs. (4) Represents amortization of leased assets. (5) Interest on lease liabilities. The following table presents information on short-term and variable lease costs: Years Ended October 31, (in millions) 2023 2022 Short-term lease costs $ 53.5 $ 43.3 Variable lease costs 6.4 6.0 Total short-term and variable lease costs $ 59.9 $ 49.3 Sublease income generated during the year ended October 31, 2023, was immaterial. The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our Consolidated Balance Sheets as of October 31, 2023, are as follows: (in millions) Operating Finance Total Fiscal 2024 $ 38.5 $ 3.8 $ 42.2 Fiscal 2025 27.9 3.8 31.7 Fiscal 2026 25.8 3.0 28.8 Fiscal 2027 19.4 1.4 20.8 Fiscal 2028 13.2 1.4 14.6 Thereafter 27.4 2.6 29.9 Total lease payments 152.1 15.9 168.0 Less: imputed interest 20.8 1.7 22.5 Present value of lease liabilities $ 131.3 $ 14.2 $ 145.5 Future sublease rental income was excluded for the periods shown above as the amounts are immaterial. We have entered into operating lease arrangements as of October 31, 2023, that are effective for future periods. The total amount of ROU assets and lease liabilities related to these arrangements is immaterial. The following table includes the weighted-average remaining lease terms, in years, and the weighted-average discount rate used to calculate the present value of operating lease liabilities: Years Ended October 31, 2023 2022 Weighted-average remaining lease term (years) Operating leases 5.5 5.7 Finance leases 5.2 3.5 Weighted-average discount rate Operating leases 4.60 % 4.09 % Finance leases 5.28 % 3.82 % The following table includes supplemental cash and non-cash information related to operating leases: Years Ended October 31, (in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 37.9 $ 35.3 Operating cash flows from finance leases 0.5 0.4 Financing cash flows from finance leases 3.0 1.9 Lease assets obtained in exchange for new operating lease liabilities 28.7 23.1 |
LEASES | LEASES The components of lease assets and liabilities and their classification on our Consolidated Balance Sheets were as follows: As of October 31, (in millions) Classification 2023 2022 Lease assets Operating leases Right-of-use assets $ 113.4 $ 115.2 Finance leases Property, plant and equipment, net (1) 15.2 10.0 Total lease assets $ 128.6 $ 125.2 Lease liabilities Current liabilities Operating leases Current portion of lease liabilities $ 32.5 $ 30.3 Finance leases Other accrued liabilities 3.1 2.8 Noncurrent liabilities Operating leases Long-term lease liabilities 98.8 104.5 Finance leases Other noncurrent liabilities 11.1 6.4 Total lease liabilities $ 145.5 $ 144.1 (1) Finance lease assets are recorded net of accumulated amortization of $18.9 million and $16.9 million as of October 31, 2023 and October 31, 2022, respectively. The components of lease costs and classification within the Consolidated Statements of Comprehensive Income were as follows: Years Ended October 31, (in millions) 2023 2022 Operating lease costs: Operating expenses (1)(2) $ 70.6 $ 60.2 Selling, general and administrative expenses (3) 25.4 25.7 Finance lease costs: Operating expenses (4) 2.4 1.7 Interest expense (5) 0.5 0.4 Total lease costs $ 99.0 $ 88.1 (1) Related to certain parking arrangements. (2) Includes short-term lease costs and variable lease costs. (3) Includes short-term lease costs. (4) Represents amortization of leased assets. (5) Interest on lease liabilities. The following table presents information on short-term and variable lease costs: Years Ended October 31, (in millions) 2023 2022 Short-term lease costs $ 53.5 $ 43.3 Variable lease costs 6.4 6.0 Total short-term and variable lease costs $ 59.9 $ 49.3 Sublease income generated during the year ended October 31, 2023, was immaterial. The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our Consolidated Balance Sheets as of October 31, 2023, are as follows: (in millions) Operating Finance Total Fiscal 2024 $ 38.5 $ 3.8 $ 42.2 Fiscal 2025 27.9 3.8 31.7 Fiscal 2026 25.8 3.0 28.8 Fiscal 2027 19.4 1.4 20.8 Fiscal 2028 13.2 1.4 14.6 Thereafter 27.4 2.6 29.9 Total lease payments 152.1 15.9 168.0 Less: imputed interest 20.8 1.7 22.5 Present value of lease liabilities $ 131.3 $ 14.2 $ 145.5 Future sublease rental income was excluded for the periods shown above as the amounts are immaterial. We have entered into operating lease arrangements as of October 31, 2023, that are effective for future periods. The total amount of ROU assets and lease liabilities related to these arrangements is immaterial. The following table includes the weighted-average remaining lease terms, in years, and the weighted-average discount rate used to calculate the present value of operating lease liabilities: Years Ended October 31, 2023 2022 Weighted-average remaining lease term (years) Operating leases 5.5 5.7 Finance leases 5.2 3.5 Weighted-average discount rate Operating leases 4.60 % 4.09 % Finance leases 5.28 % 3.82 % The following table includes supplemental cash and non-cash information related to operating leases: Years Ended October 31, (in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 37.9 $ 35.3 Operating cash flows from finance leases 0.5 0.4 Financing cash flows from finance leases 3.0 1.9 Lease assets obtained in exchange for new operating lease liabilities 28.7 23.1 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 12 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME PER COMMON SHARE | NET INCOME PER COMMON SHARE Basic and Diluted Net Income Per Common Share Calculations Years Ended October 31, (in millions, except per share amounts) 2023 2022 2021 Net income $ 251.3 $ 230.4 $ 126.3 Weighted-average common and common equivalent 66.0 67.1 67.4 Effect of dilutive securities RSUs 0.2 0.2 0.3 Performance shares 0.2 0.2 0.2 Weighted-average common and common equivalent 66.3 67.5 68.0 Net income per common share Basic $ 3.81 $ 3.44 $ 1.87 Diluted $ 3.79 $ 3.41 $ 1.86 Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans Years Ended October 31, (in millions) 2023 2022 2021 Anti-dilutive 0.3 — — |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Hierarchy of Our Financial Instruments Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis As of October 31, (in millions) Fair Value Hierarchy 2023 2022 Cash and cash equivalents (1) 1 $ 69.5 $ 73.0 Insurance deposits (2) 1 3.1 0.9 Assets held in funded deferred compensation plan (3) 1 4.0 4.1 Debt facilities (4) 2 1,313.8 1,271.3 Interest rate swap assets (5) 2 36.4 36.9 Preferred equity investments (6) 3 15.4 3.0 Contingent consideration (7) 3 13.4 59.0 (1) Cash and cash equivalents are stated at nominal value, which equals fair value. (2) Represents restricted deposits that are used to collateralize our insurance obligations and are stated at nominal value, which equals fair value. These insurance deposits are included in “Other noncurrent assets” on the accompanying Consolidated Balance Sheets. See Note 10, “Insurance,” for further information. (3) Represents investments held in Rabbi trusts associated with two of our deferred compensation plans, which we include in “Other noncurrent assets” on the accompanying Consolidated Balance Sheets. The fair value of the assets held in the funded deferred compensation plan is based on quoted market prices. See Note 12, “Employee Benefit Plans,” for further information. (4) Represents gross outstanding borrowings under our syndicated line of credit and term loan. Due to variable interest rates, the carrying value of outstanding borrowings under our line of credit and term loan approximates the fair value. See Note 11, “Debt,” for further information. (5) Represents interest rate swap derivatives designated as cash flow hedges. The fair values of the interest rate swaps are estimated based on the present value of the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows at current market interest rates using observable benchmarks for the Secured Overnight Financing Rate (“SOFR”) forward rates at the end of the period. At October 31, 2023 and 2022, our interest rate swap assets and liabilities are included in “Other noncurrent assets” and “Other noncurrent liabilities,” respectively, on the accompanying Consolidated Balance Sheets. See Note 11, “Debt,” for further information. (6) We purchased $12.4 million in a preferred equity investment and preferred stock warrants of a privately held company that specializes in the development of electric vehicle charging stations and related software during the year ended October 31, 2023, which we include within “Other investments” on the accompanying Consolidated Balance Sheet. Our total investments in preferred equity securities amounted to $15.4 million at October 31, 2023. Our investments do not have a readily determinable fair value; therefore, we account for the investments using the measurement alternative under Topic 321 and measure the investments at initial cost less impairment, if any. (7) At October 31, 2023, our contingent consideration payable related to the RavenVolt Acquisition is recorded at fair value as a liability on the acquisition date and is remeasured at each reporting date, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. At September 1, 2022, we recorded the contingent consideration at fair value of $59.0 million. After the acquisition date and until the contingency is resolved, the fair value of contingent consideration payable is adjusted each reporting period based primarily on the expected probability of achievement of the contingency targets which are subject to our estimate. These changes in fair value are recognized within “Selling, general and administrative expenses” of the Consolidated Statements of Comprehensive Income. See Note 3, “Acquisitions,” for further information. There were no transfers to or from Level 3 financial assets or liabilities during 2023 and 2022. At October 31, 2022, the Company had no financial assets or liabilities recorded at fair value using Level 3 inputs. Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis In addition to assets and liabilities that are measured at fair value on a recurring basis, we are also required to measure certain items at fair value on a non-recurring basis. These assets can include: goodwill; intangible assets; property, plant and equipment; lease-related ROU assets; and long-lived assets that have been reduced to fair value when they are held for sale. If certain triggering events occur or if an annual impairment test is required, we would evaluate these non-financial assets for impairment. If an impairment were to occur, the asset would be recorded at the estimated fair value, using primarily unobservable Level 3 inputs. During the first quarter of 2022, we performed a reorganization of our T&M segment, and reallocated $95.0 million of goodwill from our B&I segment to our M&D segment using a relative fair value approach. M&D’s goodwill balance was $502.2 million after the reorganization, which includes $407.2 million of previously recorded goodwill from our T&M segment. In addition, we completed an assessment of any potential goodwill impairment for all reporting units immediately prior to and following the reallocation and determined that no impairment existed. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, Plant and Equipment As of October 31, (in millions) 2023 2022 Machinery and other equipment $ 170.7 $ 158.7 Computer equipment and software 110.7 106.8 Transportation equipment 79.0 64.1 Leasehold improvements 69.3 67.0 Furniture and fixtures 19.8 17.3 Buildings 7.7 7.7 Land 0.8 0.7 458.0 422.2 Less: Accumulated depreciation (1) 326.5 296.9 Total $ 131.5 $ 125.4 (1) For 2023, 2022, and 2021, depreciation expense was $44.2 million, $40.3 million, and $45.0 million, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill (in millions) Business & Industry Manufacturing & Distribution Education Aviation Technical Solutions Total Balance at October 31, 2021 $ 1,129.8 $ 407.2 $ 459.3 $ 69.9 $ 162.7 2,228.9 Acquisitions 61.7 — — — 207.5 269.2 Foreign currency translation (8.7) — — (1.1) (2.7) (12.6) Reallocation (1) (95.0) 95.0 — — — — Balance at October 31, 2022 $ 1,087.8 $ 502.2 $ 459.3 $ 68.7 $ 367.4 $ 2,485.6 Acquisitions (2) 1.3 — — — (0.1) 1.1 Foreign currency translation 3.6 — — 0.3 0.8 4.7 Balance at October 31, 2023 $ 1,092.9 $ 502.2 $ 459.3 $ 69.0 $ 368.0 $ 2,491.3 (1) In connection with the reorganization of our T&M segment in the first quarter of 2022, we reallocated $95.0 million of goodwill from our B&I segment to our M&D segment using a relative fair value approach. (2) During 2023, represents final acquisition accounting adjustments to goodwill from RavenVolt and Momentum acquisitions. See Note 3, “Acquisitions and Dispositions,” for additional information. We did not record goodwill impairment charges during fiscal years 2023 and 2022. Other Intangible Assets As of October 31, 2023 2022 (in millions) Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer contracts and relationships $ 714.1 $ (413.2) $ 300.9 $ 801.6 $ (442.1) $ 359.6 Trademarks and trade names 12.1 (11.1) 1.0 21.4 (15.4) 6.1 Contract rights and other 15.0 (14.0) 1.1 15.3 (2.4) 12.9 Total (1) $ 741.2 $ (438.3) $ 302.9 $ 838.4 $ (459.8) $ 378.5 (1) These intangible assets are being amortized over the expected period of benefit, with a weighted average life of approximately 11 years. Estimated Annual Amortization Expense for Each of the Next Five Years (in millions) 2024 2025 2026 2027 2028 Estimated amortization expense (1) $ 54.4 $ 47.4 $ 41.3 $ 35.9 $ 30.9 (1) These amounts could vary as acquisitions of additional intangible assets occur in the future and as acquisition accounting is finalized for existing acquisitions. The estimates of future cash flows used in determining the fair value of goodwill and other intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions, and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management’s estimates due to changes in business conditions, operating performance, and economic conditions. |
INSURANCE
INSURANCE | 12 Months Ended |
Oct. 31, 2023 | |
Insurance [Abstract] | |
INSURANCE | INSURANCE We use a combination of insured and self-insurance programs to cover workers’ compensation, general liability, automobile liability, property damage, and other insurable risks. For the majority of these insurance programs, we retain the initial $1.0 million to $1.5 million of exposure on a per-occurrence basis, either through deductibles or self-insured retentions. Beginning November 1, 2023, retentions will range between $1.0 million and $5.0 million of exposure on a per-occurrence basis. Beyond the retained exposures, we have varying primary policy limits ranging between $1.0 million and $5.0 million per occurrence. To cover general liability and automobile liability losses above these primary limits, we maintain commercial umbrella insurance policies that provide aggregate limits of $200.0 million. Our insurance policies generally cover workers’ compensation losses to the full extent of statutory requirements. Additionally, to cover property damage risks above our retained limits, we maintain policies that provide per occurrence limits of $75.0 million. We are also self-insured for certain employee medical and dental plans. We maintain stop-loss insurance for our self-insured medical plan under which we retain up to $0.5 million of exposure on a per-participant, per-year basis with respect to claims. We maintain our reserves for workers’ compensation, general liability, automobile liability, and property damage insurance claims based upon known trends and events and the actuarial estimates of required reserves considering the most recently completed actuarial reports. We use all available information to develop our best estimate of insurance claims reserves as information is obtained. The results of actuarial reviews are used to estimate our insurance rates and insurance reserves for future periods and to adjust reserves, if appropriate, for prior years. Insurance Reserve Adjustments Actuarial Reviews and Updates Performed During 2023 We review our self-insurance liabilities on a quarterly basis and adjust our accruals accordingly. Actual claims activity or development may vary from our assumptions and estimates, which may result in material losses or gains. As we obtain additional information that affects the assumptions and estimates used in our reserve liability calculations, we adjust our self-insurance rates and reserves for future periods and, if appropriate, adjust our reserves for claims incurred in prior accounting periods. During the first and third quarters of 2023, we performed comprehensive actuarial reviews of the majority of our casualty insurance programs to evaluate changes made to claims reserves and claims payment activity for the periods of May 1, 2022, through October 31, 2022, and November 1, 2022, through April 30, 2023, respectively (the “Actuarial Reviews”). The Actuarial Reviews were comprehensive in nature and were based on loss development patterns, trend assumptions, and underlying expected loss costs during the periods analyzed. During the second and fourth quarters of 2023, we performed interim actuarial updates of the majority of our casualty insurance programs that considered changes in claims development and claims payment activity for the respective periods analyzed (the “Interim Updates”). These Interim Updates were abbreviated in nature based on actual versus expected development during the periods analyzed and relied on the key assumptions in the Actuarial Reviews (most notably loss development patterns, trend assumptions, and underlying expected loss costs). Based on the results of the Actuarial Reviews and Interim Updates, w e decreased our total reserves related to prior years for known claims as well as our estimate of the loss amounts associated with IBNR Claims during 2023 by $14.8 million. In 2022, we decreased our total reserves related to prior year claims by $36.8 million. Insurance-Related Balances and Activity As of October 31, (in millions) 2023 2022 Insurance claim reserves, excluding medical and dental $ 555.0 $ 551.0 Medical and dental claim reserves and other 9.5 8.1 Insurance recoverables 67.1 71.0 At October 31, 2023 and 2022, insurance recoverables are included in both “Other current assets” and “Other noncurrent assets” on the accompanying Consolidated Balance Sheets. Casualty Program Insurance Reserves Rollforward Years Ended October 31, (in millions) 2023 2022 2021 Net balance at beginning of year $ 479.9 $ 508.3 $ 434.8 Change in case reserves plus IBNR Claims — current year 154.2 145.7 117.9 Change in case reserves plus IBNR Claims — prior years (14.8) (36.8) (36.0) Claims paid (131.4) (129.1) (99.8) Acquisition (1) — (8.2) 91.6 Net balance, October 31 (2) 487.9 479.9 508.3 Recoverables 67.1 71.0 66.5 Gross balance, October 31 $ 555.0 $ 551.0 $ 574.8 (1) During 2021, insurance reserves increased as a result of the Able Acquisition. (2) Includes reserves related to discontinued operations of approximately $0.1 million for 2023, $0.2 million for 2022, and $0.3 million for 2021. Instruments Used to Collateralize Our Insurance Obligations As of October 31, (in millions) 2023 2022 Standby letters of credit $ 53.5 $ 153.7 Surety bonds and surety-backed letters of credit 178.0 73.2 Restricted insurance deposits 3.1 0.9 Total $ 234.7 $ 227.8 |
DEBT
DEBT | 12 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Components of Debt As of October 31, (in millions) 2023 2022 Current portion of long-term debt Gross term loan $ 32.5 $ 32.5 Unamortized deferred financing costs (1.0) (1.0) Current portion of term loan $ 31.5 $ 31.5 Receivables facility — 150.0 Current portion of debt $ 31.5 $ 181.5 Long-term debt Gross term loan $ 536.3 $ 568.8 Unamortized deferred financing costs (1.5) (2.4) Total noncurrent portion of term loan 534.8 566.3 Revolving line of credit (1)(2) 745.0 520.0 Long-term debt $ 1,279.8 $ 1,086.3 (1) Standby letters of credit amounted to $58.2 million at October 31, 2023. (2) At October 31, 2023, we had borrowing capacity of $483.0 million. At October 31, 2023, and October 31, 2022, the weighted average interest rate on our outstanding borrowings, not including letters of credit and swaps, was 7.17%.and 4.97%, respectively. On September 1, 2017, we refinanced and replaced our then-existing $800.0 million credit facility with a new senior, secured five-year syndicated credit facility, consisting of a $900.0 million revolving line of credit and an $800.0 million amortizing term loan, both of which were scheduled to mature on September 1, 2022. In accordance with the terms of the Credit Facility, the revolving line of credit was reduced to $800.0 million on September 1, 2018. On June 28, 2021, the Company amended and restated the Credit Facility with the Second Amendment, extending the maturity date to June 28, 2026, and increasing the capacity of the revolving credit facility from $800.0 million to $1.3 billion and the-then remaining term loan outstanding from $620.0 million to $650.0 million. The Amended Credit Facility provides for the issuance of up to $350.0 million for standby letters of credit and the issuance of up to $75.0 million in swingline advances. The obligations under the Amended Credit Facility are secured on a first-priority basis by a lien on substantially all of our assets and properties, subject to certain exceptions. Additionally, we may repay amounts borrowed under the Amended Credit Facility at any time without penalty. At November 1, 2022, we amended our Amended Credit Facility pursuant to the LIBOR Transition Amendment and the Fifth Amendment to replace the benchmark rate at which U.S.-dollar-denominated borrowings bear interest from LIBOR to the forward-looking Secured Overnight Financing Rate (“SOFR”) term rate administered by CME Group Benchmark Administration Limited. As a result of these amendments, we can borrow at Term SOFR plus a credit spread adjustment of 0.10% subject to a floor of zero. The Amended Credit Facility contains certain covenants, including a maximum total net leverage ratio of 5.00 to 1.00, a maximum secured net leverage ratio of 4.00 to 1.00, and a minimum interest coverage ratio of 1.50 to 1.00, as well as other financial and non-financial covenants. In the event of a material acquisition, as defined in the Amended Credit Facility, we may elect to increase the maximum total net leverage ratio to 5.50 to 1.00 for a total of four fiscal quarters and increase the maximum secured net leverage ratio to 4.50 to 1.00 for a total of four fiscal quarters. We did not make this election for the Able Acquisition. Our borrowing capacity is subject to, and limited by, compliance with the covenants described above. At October 31, 2023, we were in compliance with these covenants. The Amended Credit Facility also includes customary events of default, including: failure to pay principal, interest, or fees when due, failure to comply with covenants; the occurrence of certain material judgments; and a change in control of the Company. If certain events of default occur, including certain cross-defaults, insolvency, change in control, or violation of specific covenants, then the lenders can terminate or suspend our access to the Amended Credit Facility, declare all amounts outstanding (including all accrued interest and unpaid fees) to be immediately due and payable, and require that we cash collateralize the outstanding standby letters of credit. We incurred deferred financing costs of $6.4 million in conjunction with the Second Amendment and carried over $6.2 million of unamortized deferred financing from the initial execution, First Amendment, and previous amendments of the Credit Facility. Total deferred financing costs of $12.6 million, consisting of $4.9 million related to the term loan and $7.7 million related to the revolver, are being amortized to interest expense over the term of the Amended Credit Facility. On March 1, 2022, we entered into an uncommitted receivable repurchase facility (the “Receivables Facility”) of up to $150 million, which expired on March 30, 2023. We accounted for the sale of receivables under the Receivables Facility as short-term debt and carried the receivables on the Consolidated Balance Sheets, primarily as a result of the requirement to repurchase receivables sold. Long-Term Loan Maturities During 2023, we made principal payments under the term loan of $32.5 million. As of October 31, 2023, the following principal payments are required under the term loan. (in millions) 2024 2025 2026 2027 2028 Debt maturities $ 32.5 $ 32.5 $ 1,248.8 $ — $ — Interest Rate Swaps We enter into interest rate swaps to manage the interest rate risk associated with our floating-rate, SOFR-based borrowings. Under these arrangements, we typically pay a fixed interest rate in exchange for SOFR-based variable interest throughout the life of the agreement. We initially report the mark-to-market gain or loss on a derivative as a component of AOCL and subsequently reclassify the gain or loss into earnings when the hedged transactions occur and affect earnings. Interest payables and receivables under the swap agreements are accrued and recorded as adjustments to interest expense. All of our interest rate swaps have been designated and accounted for as cash flow hedges from inception. See Note 7, “Fair Value of Financial Instruments,” regarding the valuation of our interest rate swaps. Notional Amount Fixed Interest Rate Effective Date Maturity Date $ 100.0 million 1.72% February 9, 2022 June 28, 2026 $ 150.0 million 1.85% February 25, 2022 June 28, 2026 $ 100.0 million 2.88% May 4, 2022 June 28, 2026 $ 218.8 million (1) 2.83% July 7, 2022 June 28, 2026 $ 81.3 million (1) 2.79% July 18, 2022 June 28, 2026 $ 170.0 million 3.81% November 1, 2022 June 28, 2026 (1) In July 2022, we entered into interest rate swap agreements with notional values totaling $300.0 million at inception. The notional amount reduces to $250.0 million in April 2024, $175.0 million in October 2024, and $100.0 million in October 2025 before maturing on June 28, 2026. At October 31, 2023 and 2022, amounts recorded in AOCL for interest rate swaps were a gain of $26.0 million, net of taxes of $10.5 million, and a gain of $26.8 million, net of taxes of $10.1 million, respectively. In 2022, these amounts included the gain associated with the interest rate swaps we terminated in 2018, which was amortized to interest expense as interest payments were made over the original term of our Credit Facility. During 2022, we amortized $3.5 million, net of taxes of $1.3 million, of that gain. At October 31, 2023, the total amount expected to be reclassified from AOCL to earnings during the next 12 months was $9.8 million, net of a taxes of $3.8 million. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Oct. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Plans We provide benefits to certain employees under various defined benefit and postretirement benefit plans (collectively, the “Plans”). The Plans were previously amended to preclude new participants. All but one of the Plans are unfunded. Information for the Plans As of October 31, (in millions) 2023 2022 Net obligations $ 6.1 $ 6.0 Projected benefit obligations (1) 11.9 12.2 Fair value of assets 5.8 6.2 (1) At October 31, 2023 and 2022, total projected benefit obligations related to unfunded and underfunded plans were $11.9 million and $12.2 million, respectively. At October 31, 2023, assets of the Plans were fully invested in fixed income. The expected return on assets was $0.2 million in 2023, $0.4 million in 2022, and $0.3 million in 2021. The aggregate net periodic benefit cost for all Plans was $0.6 million, $0.1 million, and $0.3 million for 2023, 2022, and 2021, respectively. Future benefit payments in the aggregate are expected to be $11.0 million. Deferred Compensation Plans We maintain deferred compensation plans that permit eligible employees and directors to defer a portion of their compensation. At October 31, 2023 and 2022, the total liability of all deferred compensation was $27.0 million and $27.5 million, respectively, and these amounts are included in “Other accrued liabilities” and “Other noncurrent liabilities” on the accompanying Consolidated Balance Sheets. Under one of our deferred compensation plans, a Rabbi trust was created to fund the obligations, and we are required to contribute a portion of the deferred compensation contributions for eligible participants. The assets held in the Rabbi trust are not available for general corporate purposes. At October 31, 2023 and 2022, the fair value of these assets was $4.0 million and $4.1 million, respectively, and these amounts are included in “Other noncurrent assets” on the accompanying Consolidated Balance Sheets. Aggregate expense recognized under these deferred compensation plans was $0.5 million, $0.3 million, and $0.2 million for 2023, 2022, and 2021, respectively. Defined Contribution Plans We sponsor two defined contribution plans covering certain employees that are subject to the applicable provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code (“IRC”). Certain plans permit a company match of a portion of the participant’s contributions or a discretionary contribution after the participant has met the eligibility requirements set forth in the plan. During 2023, 2022, and 2021, we made matching contributions required by the plans of $29.8 million , $27.7 million, and $21.6 million, respectively. Multiemployer Pension and Postretirement Plans We participate in various multiemployer pension plans under union and industry-wide agreements that provide defined pension benefits to employees covered by collective bargaining agreements. Because of the nature of multiemployer plans, there are risks associated with participation in these plans that differ from single-employer plans. Assets contributed by an employer to a multiemployer plan are not segregated into a separate account and are not restricted to provide benefits only to employees of that contributing employer. In the event another participating employer in a multiemployer plan no longer contributes to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, including us. In the event of the termination of a multiemployer pension plan or a withdrawal from a multiemployer pension plan, we could incur material liabilities under applicable law. Key Information for Individually Significant Multiemployer Defined Benefit Pension Plans (1) ($ in millions) Pension Protection Act Zone Status (3) FIP/RP Status (4) Contributions by ABM Surcharge Imposed (5) Expiration Dates of Collective Bargaining Agreements Pension Fund EIN/PN (2) 2023 2022 Pending/ 2023 2022 2021 Building Service 32BJ Pension Fund 13-1879376 / 001 Yellow 6/30/2022 Yellow 6/30/2021 Implemented $ 21.4 $ 22.7 $ 18.8 No 12/15/2023 - 12/31/2027 S.E.I.U National Industry Pension Fund 52-6148540 / 001 Red 12/31/2022 Red 12/31/2021 Implemented 19.3 17.6 10.9 Yes 6/30/2024 - 7/31/2025 Central Pension Fund of the IUOE & Participating Employers 36-6052390 / 001 Green 1/31/2023 Green 1/31/2022 N/A* 13.0 12.8 5.3 N/A* 12/23/2023 - 6/30/2026 SEIU Local 1 & Participating Employers Pension Trust 36-6486542 / 001 Green 9/30/2022 Green 9/30/2021 N/A* 4.8 5.8 3.9 N/A* 11/30/2023 - 5/31/2026 IUOE Stationary Engineers Local 39 Pension Plan 94-6118939 / 001 Green 12/31/2022 Green 12/31/2021 N/A* 4.6 4.4 6.6 N/A* 11/30/2026 - 12/31/2029 Western Conference of Teamsters Pension Plan 91-6145047 / 001 Green 12/31/2022 Green 12/31/2021 N/A* 2.4 2.2 2.0 N/A* 11/30/2026 - 12/31/2029 All Other Plans: 8.0 8.2 9.3 Total Contributions $ 73.6 $ 73.8 $ 56.8 *Not applicable (1) To determine individually significant plans, we evaluated several factors, including our total contributions to the plan, our significance to the plan in terms of participating employees and contributions, and the funded status of the plan. (2) The “EIN/PN” column provides the Employer Identification Number and the three-digit plan number assigned to the plan by the IRS. (3) The Pension Protection Act Zone Status columns provide the two most recently available Pension Protection Act zone statuses from each plan. The zone status is based on information provided to us and other participating employers and is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. (4) Indicates whether a Financial Improvement Plan (“FIP”) for yellow zone plans or a Rehabilitation Plan (“RP”) for red zone plans is pending or implemented. (5) Indicates whether our contribution in 2023 included an amount as imposed by a plan in the red zone in addition to the contribution rate specified in the applicable collective bargaining agreement. Multiemployer Pension Plans for which ABM Is a Significant Contributor Pension Fund Contributions to the plan exceeded more than 5% of total contributions per most currently available Forms 5500 Apartment Employees Trust Fund* 12/31/2022, 12/31/2021, and 12/31/2020 Arizona Sheet Metal Pension Trust Fund* 6/30/2022, 6/30/2021, and 6/30/2020 Building Service 32BJ Pension Fund 6/30/2022, 6/30/2021, and 6/30/2020 Building Service Pension Plan* 4/30/2022, 4/30/2021, and 4/30/2020 Central Pension Fund of the IUOE & Participating Employers 1/31/2023 Contract Cleaners Service Employees' Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 IUOE Stationary Engineers Local 39 Pension Plan 12/31/2022, 12/31/2021, and 12/30/2020 Local 210's Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 Local 670 Pension Plan* 12/31/2022 Massachusetts Service Employees Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 S.E.I.U National Industry Pension Fund 12/31/2022, 12/31/2021, and 12/31/2020 SEIU Local 1 & Participating Employers Pension Trust 9/30/2022, 9/30/2021, and 9/30/2020 Service Employees International Union Local 1 Cleveland Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 Service Employees International Union Local 32BJ, District 36 Building Operators Pension Trust Fund* 12/31/2022, 12/31/2021, and 12/31/2020 Teamsters Local 617 Pension Fund* 2/28/2022, 2/28/2021, and 2/29/2020 U.S.W.U. Local 74 Welfare Fund* 12/31/2022, 12/31/2021, and 12/31/2020 * These plans are not separately listed in our multiemployer table as they represent an insignificant portion of our total multiemployer pension plan contributions. Multiemployer Defined Contribution Plans In addition to contributions noted above, we also make contributions to multiemployer defined contribution plans. During 2023, 2022, and 2021, our contributions to the defined contribution plans were $59.2 million, $54.7 million, and $21.2 million, respectively. Other Multiemployer Benefit Plans We also contribute to several multiemployer postretirement health and welfare plans based on obligations arising under collective bargaining agreements covering union-represented employees. These plans may provide medical, pharmacy, dental, vision, mental health, and other benefits to employees as determined by the trustees of each plan. The majority of our contributions benefit active employees and, as such, may not constitute contributions to a postretirement benefit plan. However, since we are unable to separate contribution amounts to postretirement benefit plans from contribution amounts paid to benefit active employees, we categorize all such amounts as contributions to postretirement benefit plans. During 2023, 2022, and 2021, our contributions to such plans were $441.8 million, $426.6 million, and $270.8 million, respectively. There have been no significant changes that affect the comparability of total contributions for any of the periods presented,except for the additions associated with the Able acquisition in 2022. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letters of Credit and Surety Bonds We use letters of credit and surety bonds to secure certain commitments related to insurance programs and for other purposes. As of October 31, 2023, these letters of credit totaled $58.2 million, and surety bonds and surety-backed letters of credit totaled $776.2 million, respectively. Guarantees In some instances, we offer clients guaranteed energy savings under certain energy savings contracts. At October 31, 2023 and 2022, total guarantees were $218.0 million and $230.5 million, respectively, and these guarantees extend through 2043 and 2042, respectively. We accrue for the estimated cost of guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. Historically, we have not incurred any material losses in connection with these guarantees. Indemnifications We are party to a variety of agreements under which we may be obligated to indemnify the other party for certain matters. These agreements are primarily standard indemnification arrangements entered into in our ordinary course of business. Pursuant to these arrangements, we may agree to indemnify, hold harmless, and reimburse the indemnified parties for losses suffered or incurred by the indemnified party, generally our clients, in connection with any claims arising out of the services that we provide. We also incur costs to defend lawsuits or settle claims related to these indemnification arrangements, and in most cases these costs are paid from our insurance program. Although we attempt to place limits on such indemnification arrangements related to the size of the contract, the maximum obligation may not be explicitly stated and, as a result, we are unable to determine the maximum potential amount of future payments we could be required to make under these arrangements. Our certificate of incorporation and bylaws may require us to indemnify our directors and officers for certain liabilities that were incurred as a result of their status or service to ABM as a director or officer. The amount of these obligations cannot be reasonably estimated. Unclaimed Property Audits We routinely remit escheat payments to states in compliance with applicable escheat laws, and we are subject to unclaimed property audits by states in the ordinary course of business. The property subject to review in the audit process may include unclaimed wages, vendor payments, or customer refunds. State escheat laws generally require entities to report and remit abandoned or unclaimed property to the state, and failure to do so can result in assessments that could include interest and penalties in addition to the payment of the escheat liability. Legal Matters We are a party to a number of lawsuits, claims, and proceedings incident to the operation of our business, including those pertaining to labor and employment, contracts, personal injury, and other matters, some of which allege substantial monetary damages. Some of these actions may be brought as class actions on behalf of a class or purported class of employees. At October 31, 2023, the total amount accrued for probable litigation losses where a reasonable estimate of the loss could be made was $13.9 million. We do not accrue for contingent losses that, in our judgment, are considered to be reasonably possible but not probable. The estimation of reasonably possible losses also requires the analysis of multiple possible outcomes that often depend on judgments about potential actions by third parties. Our management currently estimates the range of loss for all reasonably possible losses for which a reasonable estimate of the loss can be made is between zero and $5.7 million. Factors underlying this estimated range of loss may change from time to time, and actual results may vary significantly from this estimate. Litigation outcomes are difficult to predict and the estimation of probable losses requires the analysis of multiple possible outcomes that often depend on judgments about potential actions by third parties. If one or more matters are resolved in a particular period in an amount in excess of, or in a manner different than, what we anticipated, this could have a material adverse effect on our financial position, results of operations, or cash flows. |
PREFERRED AND COMMON STOCK
PREFERRED AND COMMON STOCK | 12 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
PREFERRED AND COMMON STOCK | PREFERRED AND COMMON STOCK Preferred Stock We are authorized to issue 500,000 shares of preferred stock. None of these preferred shares are issued. Common Stock Effective December 18, 2019, our Board of Directors replaced our then-existing share repurchase program with a new share repurchase program under which we may repurchase up to $150.0 million of our common stock. Effective December 9, 2022, and December 13, 2023, our Board of Directors expanded the Share Repurchase Program by $150.0 millionand $150.0 million, respectively. Share repurchases may take place on the open market or otherwise, and all or part of the repurchases may be made pursuant to Rule 10b5-1 plans or in privately negotiated transactions. The timing of repurchases is at our discretion and will depend upon several factors, including market and business conditions, future cash flows, share price, share availability, and other factors. Repurchased shares are retired and returned to an authorized but unissued status. The repurchase program may be suspended or discontinued at any time without prior notice. Repurchase Activity We repurchased shares under the share repurchase program during the year ended October 31, 2023, as summarized below. At October 31, 2023, authorization for $60.3 million of repurchases remained under the Share Repurchase Program. Years Ended October 31, (in millions, except per share amounts) 2023 2022 Total number of shares purchased 3.3 2.3 Average price paid per share (1) $ 41.06 $ 42.15 Total cash paid for share repurchases (1) $ 137.1 $ 97.5 (1) |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS We use various share-based compensation plans to provide incentives for our key employees and non-employee members of our Board of Directors. Currently, these incentives primarily consist of RSUs and performance shares. On May 2, 2006, our stockholders approved the 2006 Equity Incentive Plan, which was last amended and restated on March 7, 2018 (as amended and restated, the “2006 Equity Plan”). The 2006 Equity Plan is an omnibus plan that provides for a variety of equity and equity-based award vehicles, including stock options, stock appreciation rights, RSUs, performance shares, and other share-based awards. Shares subject to awards that terminate without vesting or exercise are available for future awards under the 2006 Equity Plan. Certain of the awards under the 2006 Equity Plan may qualify as “performance-based” compensation under the IRC. On March 24, 2021, our stockholders approved the 2021 Equity and Incentive Compensation Plan (the “2021 Equity Plan”). The 2021 Equity Plan is an omnibus plan that provides for a variety of equity and equity-based award vehicles, including stock options, stock appreciation rights, RSUs, performance shares, and other share-based awards. Shares subject to awards that terminate without vesting or exercise are available for future awards under the 2021 Equity Plan. Certain of the awards under the 2021 Equity Plan may qualify as “performance-based” compensation under the IRC. No further shares are authorized for issuance under the 2006 Equity Plan. There are 3,975,000 total shares of common stock authorized for issuance under the 2021 Equity Plan, and at October 31, 2023, there were 2,363,005 shares of common stock available for grant for future equity-based compensation awards. In addition, there are certain plans under which we can no longer issue awards, such as the 2006 Equity Plan, although awards outstanding under such plans may still vest and be exercised. We also maintain an employee stock purchase plan, which our stockholders approved on March 9, 2004 (the “2004 Employee Stock Purchase Plan”). As amended, there are 4,000,000 total shares of common stock authorized for issuance under the 2004 Employee Stock Purchase Plan. Effective May 1, 2006, the 2004 Employee Stock Purchase Plan is no longer considered compensatory and the values of the awards are no longer treated as share-based compensation expense. Additionally, as of that date, the purchase price became 95% of the fair value of our common stock price on the last trading day of the month. Employees may designate up to 10% of their compensation for the purchase of stock, subject to a $25,000 annual limit. Employees are required to hold their shares for a minimum of six months from the date of purchase. At October 31, 2023, there were 357,656 remaining unissued shares under the 2004 Employee Stock Purchase Plan. Compensation Expense by Type of Award and Related Income Tax Benefit Years Ended October 31, (in millions) 2023 2022 2021 RSUs $ 17.7 $ 18.5 $ 17.6 Performance shares 12.7 12.0 15.8 Share-based compensation expense before income taxes 30.5 30.5 33.5 Income tax benefit (8.6) (8.6) (9.4) Share-based compensation expense, net of taxes $ 21.8 $ 21.9 $ 24.1 RSUs and Dividend Equivalent Rights We award RSUs to eligible employees and non-employee members of our Board of Directors (each, a “Grantee”) that entitle the Grantee to receive shares of our common stock as the units vest. RSUs granted to eligible employees after 2020 generally vest ratably over three years. RSUs granted to eligible employees prior to 2020 generally vest with respect to 50% of the underlying award on the second and fourth anniversary of the award. Upon the retirement of certain executive employees at age 60 with a minimum of 10 years of service to the Company, pursuant to the terms of their respective employment agreements, RSUs granted to such executive employees that were granted at least one year prior to termination by reason of retirement will continue to be eligible for vesting, exercise, and settlement, as applicable, on the originally scheduled vesting date. RSUs granted to non-employee directors vest on the first anniversary date of the grant date. In general, the receipt of RSUs is subject to the grantee’s continuing employment or service as a non-employee director. RSUs are credited with dividend equivalent rights that are converted to RSUs at the fair market value of our common stock on the dates the dividend payments are made and are subject to the same terms and conditions as the underlying award. RSU Activity Number of Weighted-Average Outstanding at October 31, 2022 1.0 $ 38.58 Granted 0.5 44.37 Vested (including 0.2 shares withheld for income taxes) (0.4) 38.80 Forfeited (0.1) 42.71 Outstanding at October 31, 2023 1.0 $ 41.09 At October 31, 2023, total unrecognized compensation cost, net of estimated forfeitures, related to RSUs was $19.5 million, which is expected to be recognized ratably over a weighted-average vesting period of 2.0 years. In 2023, 2022, and 2021, the weighted-average grant date fair value per share of awards granted was $44.37, $41.63, and $40.22, respectively. In 2023, 2022, and 2021, the total grant date fair value of RSUs vested and converted to shares of ABM common stock was $17.1 million, $16.4 million, and $16.9 million, respectively. Performance Shares, Including TSR Performance Shares Performance shares consist of a contingent right to receive shares of our common stock based on performance targets adopted by our Compensation Committee. Performance shares are credited with dividend equivalent rights that will be converted to performance shares at the fair market value of our common stock beginning after the performance targets have been satisfied and are subject to the same terms and conditions as the underlying award. For certain performance share awards, the number of performance shares that will vest is based on pre-established internal financial performance targets and typically a three-year service and performance period. The number of TSR-modified awards that will vest over the respective three-year performance period is based on our total shareholder return relative to the S&P 1500 Composite Commercial Services & Supplies Index. Vesting of 0% to 150% of the awards originally granted may occur depending on the respective performance metrics. Performance Share Activity Number of Shares Weighted-Average Outstanding at October 31, 2022 1.0 $ 41.30 Granted 0.4 46.47 Vested (including 0.1 shares withheld for income taxes) (0.4) 38.08 Performance adjustments — 52.78 Forfeited — 42.30 Outstanding at October 31, 2023 0.9 $ 44.43 At October 31, 2023, total unrecognized compensation cost related to performance share awards was $18.3 million, which is expected to be recognized ratably over a weighted-average vesting period of 1.9 years. Except for TSR performance shares, these costs are based on estimated achievement of performance targets and estimated costs are periodically reevaluated. For our TSR performance shares, these costs are based on the fair value of awards at the grant date and are recognized on a straight-line basis over the service period of three years. In 2023, 2022, and 2021, the weighted-average grant date fair value per share of awards granted was $46.47, $43.06, and $39.97, respectively. In 2023, 2022, and 2021, the total grant date fair value of performance shares vested and converted to shares of ABM common stock was $14.6 million, $13.6 million, and $9.0 million, respectively. In 2023, 2022, and 2021, we used the Monte Carlo simulation valuation technique to estimate the fair value of TSR performance share grants, which used the assumptions in the table below. Monte Carlo Assumptions 2023 2022 2021 Expected life (1) 2.81 years 2.81 years 2.81 years Expected stock price volatility (2) 39.9 % 41.8 % 42.9 % Risk-free interest rate (3) 4.0 % 1.1 % 0.2 % Stock price (4) $ 46.19 $ 42.88 $ 40.75 (1) The expected life represents the remaining performance period of the awards. (2) The expected volatility for each grant is determined based on the historical volatility of our common stock over a period equal to the remaining term of the performance period from the date of grant for all awards. (3) The risk-free interest rate is based on the continuous compounded yield on U.S. Treasury Constant Maturity Rates with varying remaining terms; the yield is determined over a time period commensurate with the performance period from the grant date. (4) The stock price is the closing price of our common stock on the valuation date. Employee Stock Purchase Plan Years Ended October 31, (in millions, except per share amounts) 2023 2022 2021 Weighted-average fair value of granted purchase rights per share $ 2.23 $ 2.19 $ 2.17 Common stock issued 0.1 0.1 0.1 Fair value of common stock issued per share $ 42.40 $ 41.68 $ 41.18 Aggregate purchases $ 3.4 $ 3.4 $ 3.3 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Geographic Sources of Income Before Income Taxes Years Ended October 31, (in millions) 2023 2022 2021 United States $ 294.3 $ 278.5 $ 152.8 Foreign 36.8 31.5 27.0 Income before income taxes $ 331.1 $ 310.0 $ 179.8 Components of Income Tax Provision Years Ended October 31, (in millions) 2023 2022 2021 Current: Federal $ (50.6) $ 3.5 $ (66.3) State (25.0) (6.0) (27.4) Foreign (9.0) (9.4) (7.8) Deferred: Federal (0.5) (46.1) 34.9 State 5.3 (22.1) 13.2 Foreign 0.1 0.5 (0.1) Income tax provision $ (79.7) $ (79.6) $ (53.5) Reconciliation of the U.S. Statutory Tax Rate to Annual Effective Tax Rate Years Ended October 31, 2023 2022 2021 U.S. statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal tax benefit 6.9 7.7 6.8 Federal and state tax credits (1.0) (1.5) (2.6) Impact of foreign operations 0.8 (0.1) 0.3 Changes in uncertain tax positions 0.1 (2.5) 1.5 Incremental tax benefit from share-based compensation awards (0.7) (0.5) (0.4) Energy efficiency incentives (0.1) (0.3) (0.7) Nondeductible executive compensation 1.4 1.4 0.4 Nontaxable RavenVolt contingent consideration (3.9) — — Other nondeductible expenses 0.6 0.3 2.3 Other, net (1.0) 0.2 1.2 Effective tax rate 24.1 % 25.7 % 29.8 % During 2023 and 2022, we had effective tax rates of 24.1% and 25.7%, respectively, resulting in a provision for tax of $79.7 million and $79.6 million, respectively. Our effective tax rate for 2023 was impacted by a $12.8 million benefit related to the non-taxable change in the fair value of the contingent consideration related to the RavenVolt Acquisition, a $2.2 million benefit for share-based compensation; and a $1.5 million benefit for return to provision adjustment primarily related to state and local deferred income taxes; partially offset by a $4.8 million expense related to non-deductible executive compensation. Our effective tax rate for 2022 was impacted by the following items: an $8.1 million benefit for uncertain tax positions with expiring statutes; a $1.4 million benefit for share-based compensation; and a $1.3 million return to provision adjustments. Under various payroll tax provisions included in the CARES Act, through December 31, 2020, we deferred approximately $132 million of payroll tax. The deferred payroll tax has been remitted in full: $66 million was paid in December 2021 and the remaining $66 million was paid in December 2022. The CARES Act did not have a material impact on our income tax provision. Components of Deferred Tax Assets and Liabilities As of October 31, (in millions) 2023 2022 Deferred tax assets attributable to: Self-insurance claims (net of recoverables) $ 95.2 $ 96.1 Deferred and other compensation 31.4 33.0 Accounts receivable allowances 7.8 5.8 Settlement liabilities 4.5 10.4 Other accruals 4.3 4.8 State taxes 1.5 1.2 State net operating loss carryforwards 2.6 3.2 Tax credits 2.3 3.1 Unrecognized tax benefits 3.6 3.3 Deferred payroll taxes — 18.1 Operating lease liabilities 27.3 31.0 Gross deferred tax assets 180.5 210.0 Valuation allowance (1.2) (1.6) Total deferred tax assets 179.3 208.4 Deferred tax liabilities attributable to: Property, plant and equipment (4.3) (5.4) Goodwill and other acquired intangibles (200.0) (222.9) Right-of-use assets (28.6) (31.9) Tax accounting method change (11.7) (17.1) Other comprehensive Income (8.4) (9.0) Other (11.3) (11.8) Total deferred tax liabilities (264.3) (298.1) Net deferred tax liabilities $ (85.0) $ (89.7) Net Operating Loss Carryforwards and Credits State net operating loss carryforwards totaling $48.7 million at October 31, 2023, are being carried forward in several state jurisdictions where we are permitted to use net operating losses from prior periods to reduce future taxable income. These losses will expire between 2024 and 2043. Federal net operating loss carryforwards were fully utilized during 2022. Federal and state tax credit carryforwards totaling $2.7 million are available to reduce future cash taxes and will expire between 2024 and 2043. The valuation allowance represents the amount of tax benefits related to state net operating loss carryforwards that are not likely to be realized. We believe the remaining deferred tax assets are more likely than not to be realizable based on estimates of future taxable income. Changes to the Valuation Allowance Years Ended October 31, (in millions) 2023 2022 2021 Valuation allowance at beginning of year $ 1.6 $ 2.2 $ 4.1 Other, net (0.4) (0.6) (1.9) Valuation allowance at end of year $ 1.2 $ 1.6 $ 2.2 Unrecognized Tax Benefits At October 31, 2023, 2022, and 2021, there were $20.7 million, $22.0 million, and $30.4 million, respectively, of unrecognized tax benefits that if recognized in the future would impact our effective tax rate. We estimate that a decrease in unrecognized tax benefits of up to approximately $0.7 million is reasonably possible over the next 12 months due to lapses of applicable statutes of limitations. At October 31, 2023 and 2022, accrued interest and penalties were $1.4 million and $0.7 million, respectively. For interest and penalties, we recognized a $0.7 million expense, a $0.9 million benefit, and a $0.1 million expense in 2023, 2022, and 2021, respectively. Reconciliation of Total Unrecognized Tax Benefits Years Ended October 31, (in millions) 2023 2022 2021 Balance at beginning of year $ 22.0 $ 30.4 $ 35.5 Additions for tax positions related to the current year — — 3.7 Additions for tax positions related to prior years 2.1 0.3 0.3 Reductions for tax positions related to prior years (1.5) (1.5) (5.3) Reductions for lapse of statute of limitations (1.9) (7.2) (2.5) Settlements — — (1.3) Balance at end of year $ 20.7 $ 22.0 $ 30.4 Jurisdictions We conduct business in all 50 states, significantly in California, Texas, and New York, as well as in various foreign jurisdictions. Our most significant income tax jurisdiction is the United States. Due to expired statutes and closed audits, our federal income tax returns for years prior to fiscal 2020 are no longer subject to examination by the U.S. Internal Revenue Service. Generally, for the majority of state and foreign jurisdictions where we do business, periods prior to fiscal 2020 are no longer subject to examination. We are currently being examined by the tax authorities of California, New York City, Montana, Massachusetts, and Oregon. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION Segment Information Our current reportable segments consist of B&I, M&D, Education, Aviation, and Technical Solutions, as further described below. REPORTABLE SEGMENTS AND DESCRIPTIONS B&I B&I, our largest reportable segment, encompasses janitorial, facilities engineering, and parking services for commercial real estate properties (including corporate offices for high tech clients), sports and entertainment venues, and traditional hospitals and non-acute healthcare facilities. B&I also provides vehicle maintenance and other services to rental car providers. M&D M&D provides integrated facility services, engineering, janitorial, and other specialized services in different types of manufacturing, distribution, and data center facilities. Manufacturing facilities include traditional motor vehicles, electric vehicles, batteries, pharmaceuticals, steel, semiconductors, chemicals, and many others. Distribution facilities include e-commerce, cold storage, logistics, general warehousing, and others. Education Education delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges, and universities. Aviation Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. Technical Solutions Technical Solutions specializes in facility infrastructure, mechanical and electrical services, including EV power design, installation and maintenance, as well as microgrid systems installations. These services can also be leveraged for cross-selling across all of our industry groups, both domestically and internationally. The accounting policies for our segments are the same as those disclosed within our significant accounting policies in Note 2, “Basis of Presentation and Significant Accounting Policies.” Our management evaluates the performance of each reportable segment based on its respective operating profit results, which include the allocation of certain centrally incurred costs. Corporate expenses not allocated to segments include certain CEO and other finance and human resource departmental expenses, certain information technology costs, share-based compensation, certain legal costs and settlements, restructuring and related costs, certain actuarial adjustments to self-insurance reserves, and direct acquisition costs. Management does not review asset information by segment, therefore we do not present assets in this note. Financial Information by Reportable Segment Years Ended October 31, (in millions) 2023 2022 2021 Revenues Business & Industry $ 4,089.4 $ 4,095.9 $ 2,853.8 Manufacturing & Distribution 1,526.7 1,445.2 1,363.1 Education 880.4 834.7 830.8 Aviation 925.7 804.0 651.1 Technical Solutions 674.2 626.8 529.8 $ 8,096.4 $ 7,806.6 $ 6,228.6 Operating profit Business & Industry $ 315.6 $ 334.9 $ 285.9 Manufacturing & Distribution 161.7 161.8 155.5 Education 49.7 47.1 61.5 Aviation 60.0 29.3 32.1 Technical Solutions (1) 53.2 63.8 49.4 Government Services — (0.3) (0.2) Corporate (2) (3) (226.6) (284.5) (374.6) Adjustment for income from unconsolidated affiliates, included in Aviation (3.9) (2.4) (2.1) Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.3) (0.9) (1.2) 409.5 348.8 206.3 Income from unconsolidated affiliates 3.9 2.4 2.1 Interest expense (82.3) (41.1) (28.6) Income before income taxes $ 331.1 $ 310.0 $ 179.8 Depreciation and amortization Business & Industry $ 44.9 $ 47.1 $ 18.4 Manufacturing & Distribution 13.1 13.4 13.4 Education 22.5 25.4 30.5 Aviation 9.6 8.2 9.1 Technical Solutions 17.5 7.0 5.9 Corporate 13.1 11.4 12.7 $ 120.7 $ 112.4 $ 89.9 (1) Reflects a $7.6 million gain on the sale of assets during the year ended October 31, 2022. (2) Reflects adjustments to the fair value of the contingent consideration payable related to the RavenVolt Acquisition of $45.6 million and an employee retention credit totaling $24.0 million during the year ended October 31, 2023. (3) Reflects accrued litigation settlement reserve totaling $142.9 million for the Bucio case during the year ended October 31, 2021. Geographic Information Based on the Country in Which the Sale Originated (1) Years Ended October 31, (in millions) 2023 2022 2021 Revenues United States $ 7,565.6 $ 7,335.3 $ 5,847.8 All other countries 530.8 471.3 380.8 $ 8,096.4 $ 7,806.6 $ 6,228.6 (1) Substantially all of our long-lived assets are related to U.S. operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Oct. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Share Repurchase Program Effective December 18, 2019, our Board of Directors replaced our then-existing share repurchase program with a new share repurchase program under which we may repurchase up to $150.0 million of our common stock. Effective December 9, 2022, and December 13, 2023, our Board of Directors expanded the Share Repurchase Program by $150.0 million and $150.0 million, respectively. Repurchases of our common stock may take place on the open market or otherwise, and all or part of the repurchases may be made pursuant to Rule 10b5-1 plans or in privately negotiated transactions. The timing of repurchases is at our discretion and will depend upon several factors, including market and business conditions, future cash flows, share price, and share availability. Repurchased shares are retired and returned to an authorized but unissued status. The Share Repurchase Program may be suspended or discontinued at any time without prior notice. At December 13, 2023, authorization for $210.3 million of repurchases remained under the Share Repurchase Program. |
SCHEDULE II - VALULATION AND QU
SCHEDULE II - VALULATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Oct. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALULATION AND QUALIFYING ACCOUNTS | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions) Balance Additions from Acquisitions Charges to Write-offs (1) / Allowance Taken Balance Accounts receivable and sales allowances 2023 $ 22.6 — 76.0 (73.6) $ 25.0 2022 32.7 1.4 60.6 (72.1) 22.6 2021 35.5 1.3 44.3 (48.4) 32.7 (1) Write-offs are net of recoveries. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the SEC, specifically Regulation S-X and the instructions to Form 10-K. Unless otherwise indicated, all references to years are to our fiscal year, which ends on October 31. |
Principles of Consolidation | The Financial Statements include the accounts of ABM and all of our consolidated subsidiaries. We account for ABM’s investments in unconsolidated affiliates under the equity method of accounting. We include the results of acquired businesses in the Consolidated Statements of Comprehensive Income from their respective acquisition dates. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of consolidated financial statements in accordance with U.S. GAAP requires our management to make certain estimates that affect reported amounts. We base our estimates on historical experience, known or expected trends, independent valuations, and various other assumptions that we believe to be reasonable under the circumstances. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Trade Accounts Receivable and Costs Incurred in Excess of Amounts Billed / Allowance for Doubtful Accounts | Trade Accounts Receivable and Costs Incurred in Excess of Amounts Billed Trade accounts receivable arise from services provided to our clients and are usually due and payable on varying terms from receipt of the invoice to net 90 days, with the exception of certain Technical Solutions project receivables that may have longer collection periods. These receivables are recorded at the invoiced amount and normally do not bear interest. In addition, our trade accounts receivable include unbilled receivables, such as invoices for services that have been provided but are not yet billed. Costs incurred in excess of amounts billed arise from Technical Solutions project contracts that typically provide for a schedule of billings or invoices to the client based on our performance to date of specific tasks inherent in the fulfillment of our performance obligation(s). The schedules for such billings usually do not precisely match the schedule on which costs are incurred. As a result, revenues generally differ from amounts that can be billed or invoiced to the client at any point during the contract. Allowance for Doubtful Accounts |
Sales Allowance | Sales Allowance |
Other Current Assets | Other Current Assets |
Other Investments | Other Investments At October 31, 2023 and 2022, other investments primarily consisted of preferred equity investments and investments in unconsolidated affiliates and were $28.8 million and $14.5 million, respectively. We did not recognize any impairment charges on these investments in 2023, 2022, or 2021. Preferred Equity investments We own non-controlling interests (generally under 20%) in entities that provide specialized services. Our investments do not have readily determinable fair values; therefore, we measure the investment at initial cost less impairment, if any. |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates |
Property, Plant and Equipment | Property, Plant and Equipment We record property, plant and equipment at cost. Repairs and maintenance expenditures are expensed as incurred. In contrast, we capitalize major renewals or replacements that substantially extend the useful life of an asset. We determine depreciation for financial reporting purposes using the straight-line method over the following estimated useful lives: Category Years Computer equipment and software 3–7 Machinery and other equipment 3–5 Transportation equipment 1.5–10 Buildings 10–40 Furniture and fixtures 5 In addition, we depreciate assets under finance leases and leasehold improvements over the shorter of their estimated useful lives or the remaining lease term. Upon retirement or sale of an asset, we remove the cost and accumulated depreciation from our Consolidated Balance Sheets. When applicable, we record corresponding gains or losses within the accompanying Consolidated Statements of Comprehensive Income. |
Leases | Leases We account for our leases in accordance with ASU 2016-02, Leases (Topic 842). Topic 842 requires lessees to recognize substantially all leases on their balance sheet as a right-of-use (“ROU”) asset and a lease liability. We made the accounting policy election to not recognize leases with an initial term of 12 months or less on the balance sheet and will expense payments for such leases on a straight-line basis over the lease term. We also elected to not separate lease components from non-lease components. We enter into various noncancelable l ease agreements for office space, parking facilities, warehouses, vehicles, and equipment used in the normal course of business. We determine if an arrangement is a lease at inception and begin recording lease activity at the commencement date. ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. The present value of future lease payments is determined using our incremental borrow rate (“IBR”) unless the implicit rate in the lease is readily determinable. Our IBR is equal to our rate of interest adjusted for term differences. This IBR is applied to the minimum lease payments within each lease agreement to determine the amounts of our ROU assets and lease liabilities. Our lease terms range from one Lease agreements may contain rent escalation clauses, rent holidays, or certain landlord incentives, including tenant improvement allowances. ROU assets include amounts for scheduled rent increases and are reduced by lease incentive amounts. Certain of our lease agreements include variable rent payments consisting primarily of rental payments adjusted periodically for inflation, maintenance, and utilities . These costs are expensed as incurred. Certain of our parking arrangements also contain variable rent payments that are a percentage of parking services revenue based on contractual levels. We record contingent rent as it becomes probable that specified targets will be met. Vari able rent lease components are not included in the lease liability. Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853) : Determining the Customer of the Operation Services |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess purchase price of acquired businesses over the fair value of the assets acquired and liabilities assumed. We have elected to make the first day of our fourth quarter, August 1, the annual impairment assessment date for goodwill. However, we could be required to evaluate the recoverability of goodwill more often if impairment indicators exist. Goodwill is tested for impairment at a “reporting unit” level by performing either a qualitative evaluation or a quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. We may elect not to perform the qualitative assessment for some or all reporting units and instead perform a quantitative test under which we estimate the fair value using a weighting of fair values derived from an income approach and a market approach. The discounted estimates of future cash flows include significant management assumptions, such as revenue growth rates, operating margins, weighted average cost of capital, and future economic and market conditions. Other intangible assets primarily consist of acquired customer contracts and relationships that are amortized using the sum-of-the-years’-digits method over their useful lives, consistent with the estimated useful life considerations used in the determination of their fair values. This accelerated method of amortization reflects the pattern in which the economic benefits from the intangible assets of customer contracts and relationships are expected to be realized. We amortize other non-customer acquired intangibles using a straight-line method of amortization. We evaluate other intangible assets, as well as our long-lived assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. When this occurs, a recoverability test is performed that compares the projected undiscounted cash flows from the use and eventual disposition of an asset or asset group to its carrying amount. If the projected undiscounted cash flows are less than the carrying amount, then we calculate an impairment loss. The impairment loss calculation compares the fair value, which is based on projected discounted cash flows, to the carrying value. |
Other Noncurrent Assets | Other Noncurrent Assets At October 31, 2023 and 2022, other noncurrent assets primarily consisted of long-term insurance recoverables, interest rate swap assets, capitalized commissions, cloud computing arrangements, prepayments to carriers for future insurance claims, and insurance deposits. |
Federal Energy Savings Performance Contract Receivables / Remaining Performance Obligations | Federal Energy Savings Performance Contract Receivables Remaining Performance Obligations At October 31, 2023, performance obligations that were unsatisfied or partially unsatisfied for which we expect to recognize revenue totaled $332.8 million. We expect to recognize revenue on approximately 69% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter, based on our estimates of project timing. These amounts exclude variable consideration primarily related to: (i) contracts where we have determined that the contract consists of a series of distinct service periods and revenues are based on future performance that cannot be estimated at contract inception; (ii) parking contracts where we and the customer share the gross revenues or operating profit for the location; and (iii) contracts where transaction prices include performance incentives that are based on future performance and therefore cannot be estimated at contract inception. We apply the practical expedient that permits exclusion of information about the remaining performance obligations with original expected durations of one year or less. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets; Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and Level 3 – Significant inputs to the valuation model are unobservable. |
Insurance Reserves | Insurance Reserves We use a combination of insured and self-insurance programs to cover workers’ compensation, general liability, automobile liability, property damage, and other insurable risks. Insurance claim liabilities represent our estimate of retained risks without regard to insurance coverage. We retain a substantial portion of the risk related to certain workers’ compensation and medical claims. Liabilities associated with these losses include estimates of both filed claims and IBNR Claims. With the assistance of third-party actuaries, we review our estimate of ultimate losses for IBNR Claims on a quarterly basis and adjust our required self-insurance reserves as appropriate. See Note 10, “Insurance,” for further details on the quarterly review procedures. As part of this evaluation, we review the status of existing and new claim reserves as established by third-party claims administrators. The third-party claims administrators establish the case reserves based upon known factors related to the type and severity of the claims, demographic factors, legislative matters, and case law, as appropriate. We compare actual trends to expected trends and monitor claims developments. The specific case reserves estimated by the third-party administrators are provided to an actuary who assists us in projecting an actuarial estimate of the overall ultimate losses for our self-insured or high deductible programs, which includes the case reserves plus an actuarial estimate of reserves required for additional developments, such as IBNR Claims. We utilize the results of actuarial studies to estimate our insurance rates and insurance reserves for future periods and to adjust reserves, if appropriate, for prior years. In general, our insurance reserves are recorded on an undiscounted basis. We allocate current-year insurance expense to our operating segments based upon their underlying exposures, while actuarial adjustments related to prior year claims are recorded within Corporate expenses. We classify claims as current or long-term based on the expected settlement date. Estimated insurance recoveries related to recorded liabilities are reflected as assets in our Consolidated Balance Sheets when we believe the receipt of such amounts is probable. |
Other Accrued Liabilities | Other Accrued Liabilities At October 31, 2023 and 2022, other accrued liabilities primarily consisted of contract liabilities, employee benefits, ESPC liabilities, unclaimed property, legal fees and settlements, and dividends payable. |
Other Noncurrent Liabilities | Other Noncurrent Liabilities At October 31, 2023 and 2022, other noncurrent liabilities primarily consisted of deferred compensation, contingent consideration liability, long-term finance leases, and retirement plan liabilities. |
Contracts with Customers | Contracts with Customers We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. Once a contract is identified, we evaluate whether it is a combined or single contract and whether it should be accounted for as more than one performance obligation. Generally, most of our contracts are cancelable by either party without a substantive penalty, and the majority of our contracts have a notification period of 30 to 90 days. If a contract includes a cancellation clause, the remaining contract term is limited to the required termination notice period. At contract inception, we assess the services promised to our customers and identify a performance obligation for each promise to transfer to the customer a service, or a bundle of services, that is distinct. To identify the performance obligation, we consider all of our services promised in the contract, regardless of whether they are explicitly stated or are implied by customary business practices. The majority of our contracts contain multiple promises that represent an integrated bundle of services comprised of activities that may vary over time; however, these activities fulfill a single integrated performance obligation since we perform a continuous service that is substantially the same and has the same pattern of transfer to the customer. Our performance obligations are primarily satisfied over time as we provide the related services. We allocate the contract transaction price to this single performance obligation and recognize revenue as the services are performed, as further described in “Contract Types” below. Certain arrangements involve variable consideration (primarily per transaction fees, reimbursable expenses, and sales-based royalties). We do not estimate the variable consideration for these arrangements; rather, we recognize these variable fees in the period they are earned. Some of our contracts, often related to Airline Services, may also include performance incentives based on variable performance measures that are ascertained exclusively by future performance and therefore cannot be estimated at contract inception and are recognized as revenue once known and mutually agreed upon. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current, and forecasted) that is reasonably available to us. We primarily account for our performance obligations under the series guidance, using the as-invoiced practical expedient when applicable. We apply the as-invoiced practical expedient to record revenue as the services are provided, given the nature of the services provided and the frequency of billing under the customer contracts. Under this practical expedient, we recognize revenue in an amount that corresponds directly with the value to the customer of our performance completed to date and for which we have the right to invoice the customer. We typically bill customers on a monthly basis and have the right to consideration from customers in an amount that corresponds directly with the performance obligation satisfied to date. The time between completion of the performance obligation and collection of cash is generally 30 to 60 days. Sales-based taxes are excluded from revenue. Contracts generally can be modified to account for changes in specifications and requirements. We consider contract modifications to exist when the modification either changes the consideration, creates new performance obligations, or changes the existing scope of the contract and related performance obligations. Historically, contract modifications have been for services that are not distinct from the existing contract, since we are providing a bundle of services that are highly interrelated, and are therefore treated as if they were part of that existing contract. Such modifications are generally accounted for retrospectively as part of the existing contract. Contract Types We have arrangements under various contract types, as described below. Monthly Fixed-Price Monthly fixed-price arrangements are contracts in which the client agrees to pay a fixed fee every month over a specified contract term. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Square-Foot Square-foot arrangements are contracts in which the client agrees to pay a fixed fee every month based on the actual square footage serviced over a specified contract term. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Cost-Plus Cost-plus arrangements are contracts in which the clients reimburse us for the agreed-upon amount of wages and benefits, payroll taxes, insurance charges, and other expenses associated with the contracted work, plus a profit margin. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Work Orders Work orders generally consist of supplemental services requested by clients outside of the standard service specification and include cleanup after tenant moves, construction cleanup, flood cleanup, and snow removal. The nature of these short-term contracts involves performing one-off type services, and revenue is recognized at the agreed-upon contractual amount over time as the services are provided, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Transaction-Price Transaction-price contracts are arrangements in which customers are billed a fixed price for each transaction performed on a monthly basis (e.g., wheelchair passengers served, airplane cabins cleaned). We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Hourly Hourly arrangements are contracts in which the client is billed a fixed hourly rate for each labor hour provided. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual amount over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Management Reimbursement Under management reimbursement arrangements, we manage a parking facility for a management fee and pass through the revenue and expenses associated with the facility to the owner. We measure progress toward satisfaction of the performance obligation over time as the services are provided. Under these contracts we recognize both revenues and expenses, in equal amounts, that are directly reimbursed from the property owner for operating expenses, as such expenses are incurred. Such revenues do not include gross customer collections at the managed locations, because they belong to the property owners. We have determined we are the principal in these transactions, because the nature of our performance obligation is for us to provide the services on behalf of the customer and we have control of the promised services before they are transferred to the customer. Management reimbursement revenue was $302.3 million, $280.6 million, and $240.3 million during 2023, 2022, and 2021, respectively. Leased Location Under leased location parking arrangements, we pay a fixed amount of rent, plus a percentage of revenues derived from monthly and transient parkers, to the property owner. We retain all revenues received and we are responsible for most operating expenses incurred. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Rental expense and certain other expenses under contracts that meet the definition of service concession arrangements are recorded as a reduction of revenue. Allowance Under allowance parking arrangements, we are paid a fixed amount or hourly rate to provide parking services, and we are responsible for certain operating expenses that are specified in the contract. We measure progress toward satisfaction of the performance obligation as the services are provided, and revenue is recognized at the agreed-upon contractual rate over time, because the customer simultaneously receives and consumes the benefits of the services as they are performed. Energy Savings Contracts and Fixed-Price Repair and Refurbishment Under energy savings contracts and fixed-price repair and refurbishment arrangements, we agree to develop, design, engineer, and construct a project. Additionally, as part of bundled energy solutions arrangements, we guarantee the project will satisfy agreed-upon performance standards. We use the cost-to-cost method, which compares the actual costs incurred to date with the current estimate of total costs to complete, to measure the satisfaction of the performance obligation and recognize revenue as work progresses and we incur costs on our contracts; we believe this method best reflects the transfer of control to the customer. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments. Equipment purchased for these projects is project-specific and considered a value-added element to our work. Equipment costs are incurred when the title is transferred to us, typically upon delivery to the work site. Revenue for uninstalled equipment is recognized at cost and the associated margin is deferred until installation is substantially complete. We recognize revenue over time for all of our services as we perform them, because (i) control continuously transfers to the customer as work progresses, or (ii) we have the right to bill the customer as costs are incurred. The customer typically controls the work in process, as evidenced either by contractual termination clauses or by our rights to payment for work performed to date plus a reasonable profit to deliver products or services that do not have an alternative use to us. Certain project contracts include a schedule of billings or invoices to the customer based on our job-to-date percentage of completion of specific tasks inherent in the fulfillment of our performance obligation(s) or in accordance with a fixed billing schedule. Fixed billing schedules may not precisely match the actual costs incurred. Therefore, revenue recognized may differ from amounts that can be billed or invoiced to the customer at any point during the contract, resulting in balances that are considered revenue recognized in excess of amounts billed or amounts billed in excess of revenue recognized. Advanced payments from our customers generally do not represent a significant financing component as the payments are used to meet working capital demands that can be higher in the early stages of a contract, as well as to protect us from our customer failing to meet its obligations under the contract. Certain projects include service maintenance agreements under which existing systems are repaired and maintained for a specific period of time. We generally recognize revenue under these arrangements over time. Our service maintenance agreements are generally one-year renewable agreements. Franchise We franchise certain engineering services through individual and area franchises under the Linc Service and TEGG brands, which are part of ABM Technical Solutions. Initial franchise fees result from the sale of a franchise license and include the use of the name, trademarks, and proprietary methods. The franchise license is considered symbolic intellectual property, and revenue related to the sale of this right is recognized at the agreed-upon contractual amount over the term of the initial franchise agreement. Royalty fee revenue consists of sales-based royalties received as part of the consideration for the franchise right, which is calculated as a percentage of the franchisees’ revenue. We recognize royalty fee revenue at the agreed-upon contractual rates over time as the customer revenue is generated by the franchisees. A receivable is recognized for an estimate of the unreported royalty fees, which are reported and remitted to us in arrears. Microgrid Systems Installation We provide electrical contracting services for energy related products such as the installation of solar solutions, battery storage, distributed generation, and other specialized electric trades. We use the cost-to-cost method, which compares the actual costs incurred to date with the current estimate of total costs to complete, to measure the satisfaction of the performance obligation and recognize revenue as work progresses and we incur costs on our contracts; we believe this method best reflects the transfer of control to the customer. This measurement and comparison process requires updates to the estimate of total costs to complete the contract, and these updates may include subjective assessments and judgments. Costs to Obtain a Contract with a Customer We capitalize the incremental costs of obtaining a contract with a customer, primarily commissions, as contract assets and recognize the expense on a straight-line basis over a weighted average expected customer relationship period. Capitalized commissions are classified as current or noncurrent based on the timing of when we expect to recognize the expense. Contract Balances The timing of revenue recognition, billings, and cash collections results in contract assets and contract liabilities, as further explained below. The timing of revenue recognition may differ from the timing of invoicing to customers. If a contract includes a cancellation clause that allows for the termination of the contract by either party without a substantive penalty, then the contract term is limited to the termination notice period. Contract assets primarily consist of billed trade receivables, unbilled trade receivables, and costs incurred in excess of amounts billed. Billed and unbilled trade receivables represent amounts from work completed in which we have an unconditional right to bill our customer. Costs incurred in excess of amounts billed typically arise when the revenue recognized on projects exceeds the amount billed to the customer. These amounts are transferred to billed trade receivables when the rights become unconditional. Contract assets also include the capitalization of incremental costs of obtaining a contract with a customer, primarily commissions. Contract liabilities consist of deferred revenue and advance payments and billings in excess of revenue recognized. We generally classify contract liabilities as current since the related contracts are generally for a period of one year or less. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation. |
Advertising | Advertising |
Share-Based Compensation | Share-Based Compensation |
Taxes Collected from Clients and Remitted to Governmental Agencies | Taxes Collected from Clients and Remitted to Governmental Agencies We record taxes on client transactions due to governmental agencies as receivables and liabilities on the Consolidated Balance Sheets. |
Net Income Per Common Share | Net Income Per Common Share |
Contingencies and Litigation | Contingencies and Litigation |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered. Deferred tax assets are reviewed for recoverability on a quarterly basis. A valuation allowance is recorded to reduce the carrying amount of a deferred tax asset to its realizable value unless it is more likely than not that such asset will be realized. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense in our Consolidated Statements of Comprehensive Income. Employee Retention Tax Credit |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides optional expedients to assist with the discontinuance of London Interbank Offered Rate (“LIBOR”). The expedients allow companies to ease the potential accounting burden when modifying contracts and hedging relationships that use LIBOR as a reference rate, if certain criteria are met. In January 2021, FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope . This ASU clarifies that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions under Topic 848. Effective November 1, 2022, we applied available practical expedients under Topic 848 to account for modifications, changes in critical terms, and updates to the designated hedged risks as qualifying changes have been made to applicable debt and derivative contracts as if they were not substantial. Recently Issued Accounting Standards In September 2022, the FASB issued ASU 2022-04, Liabilities — Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations , designed to enhance transparency around supplier finance programs by requiring new disclosures that would allow a user of the financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude. This ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. We are currently evaluating the impact of implementing this guidance on our financial statements; however, we do not expect adoption to have a material impact. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This accounting update improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This ASU requires disclosure, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker, and an amount for other segment items by reportable segment, with a description of its composition. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of implementing this guidance on our financial statements; however, we do not expect adoption to have a material impact. |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | We determine depreciation for financial reporting purposes using the straight-line method over the following estimated useful lives: Category Years Computer equipment and software 3–7 Machinery and other equipment 3–5 Transportation equipment 1.5–10 Buildings 10–40 Furniture and fixtures 5 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of the Final Acquisition Accounting | The following table summarizes the final acquisition accounting: (in millions) Cash and cash equivalents $ 29.0 Trade accounts receivable 16.5 Other assets 3.8 Intangible assets 16.7 Goodwill 207.4 Trade accounts payable (5.2) Deferred revenue (31.6) Other accrued liabilities (3.2) Deferred income tax liability, net (4.5) Net assets acquired $ 228.9 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | Year Ended October 31, 2023 (in millions) B&I M&D Education Aviation Technical Solutions Total Major Service Line Janitorial (1) $ 2,745.2 $ 1,330.8 $ 774.8 $ 146.9 $ — $ 4,997.7 Parking (2) 408.2 42.5 0.8 329.3 — 780.8 Facility Services (3) 936.0 153.4 104.8 32.0 — 1,226.2 Building & Energy Solutions (4) — — — — 674.2 674.2 Airline Services (5) — — — 417.5 — 417.5 Total $ 4,089.4 $ 1,526.7 $ 880.4 $ 925.7 $ 674.2 $ 8,096.4 Year Ended October 31, 2022 (in millions) B&I M&D Education Aviation Technical Solutions Total Major Service Line Janitorial (1) $ 2,746.6 $ 1,242.4 $ 720.6 $ 119.8 $ — $ 4,829.4 Parking (2) 354.3 36.6 0.9 311.7 — 703.6 Facility Services (3) 995.0 166.2 113.2 28.3 — 1,302.7 Building & Energy Solutions (4) — — — — 626.8 626.8 Airline Services (5) — — — 344.2 — 344.2 Total $ 4,095.9 $ 1,445.2 $ 834.7 $ 804.0 $ 626.8 $ 7,806.6 (1) Janitorial arrangements provide a wide range of essential cleaning services for commercial office buildings, airports and other transportation centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, and stadiums and arenas. These arrangements are often structured as monthly fixed-price, square-foot, cost-plus, and work order contracts. (2) Parking arrangements provide parking and transportation services for clients at various locations, including airports and other transportation centers, commercial office buildings, educational institutions, health facilities, hotels, and stadiums and arenas. These arrangements are structured as management reimbursement, leased location, and allowance contracts. Certain of these arrangements are considered service concession agreements and are accounted for under the guidance of Topic 853; accordingly, rent expense related to these arrangements is recorded as a reduction of the related parking service revenues. (3) Facility Services arrangements provide onsite mechanical engineering and technical services and solutions relating to a broad range of facilities and infrastructure systems that are designed to extend the useful life of facility fixed assets, improve equipment operating efficiencies, reduce energy consumption, lower overall operational costs for clients, and enhance the sustainability of client locations. These arrangements are generally structured as monthly fixed-price, cost-plus, and work order contracts. (4) Building & Energy Solutions arrangements provide custom energy solutions, including microgrid systems installation, electrical, HVAC, lighting, electric vehicle charging station installation, and other general maintenance and repair services for clients in the public and private sectors and are generally structured as Energy Savings and Fixed-Price Repair and Refurbishment contracts. We also franchise certain operations under franchise agreements relating to our Linc Network and TEGG brands pursuant to franchise contracts. (5) Airline Services arrangements support airlines and airports with services such as passenger assistance, catering logistics, and airplane cabin maintenance. These arrangements are often structured as monthly fixed-price, cost-plus, transaction price, and hourly contracts. |
Schedule of Contract Asset and Liability | The following tables present the balances in our contract assets and contract liabilities: As of October 31, (in millions) 2023 2022 Contract assets Billed trade receivables (1) $ 1,219.6 $ 1,138.8 Unbilled trade receivables (1) 170.4 162.5 Costs incurred in excess of amounts billed (2) 139.2 75.8 Capitalized commissions (3) 30.2 30.9 (1) Included in “Trade accounts receivable, net” on the Consolidated Balance Sheets. The fluctuations correlate directly to the execution of new customer contracts and to invoicing and collections from customers in the normal course of business. (2) Fluctuation is primarily due to the timing of payments on our contracts measured using the cost-to-cost method of revenue recognition. (3) Included in “Other current assets” and “Other noncurrent assets” on the Consolidated Balance Sheets. During the year ended October 31, 2023, we capitalized $14.5 million of new costs and amortized $15.2 million of previously capitalized costs. There was no impairment loss recorded on the costs capitalized. (in millions) Year Ended Contract liabilities (1) Balance at beginning of year $ 79.6 Additional contract liabilities 335.9 Recognition of deferred revenue (274.3) Balance at end of year $ 141.2 (1) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease assets and Liabilities / Operating Lease Liabilities | The components of lease assets and liabilities and their classification on our Consolidated Balance Sheets were as follows: As of October 31, (in millions) Classification 2023 2022 Lease assets Operating leases Right-of-use assets $ 113.4 $ 115.2 Finance leases Property, plant and equipment, net (1) 15.2 10.0 Total lease assets $ 128.6 $ 125.2 Lease liabilities Current liabilities Operating leases Current portion of lease liabilities $ 32.5 $ 30.3 Finance leases Other accrued liabilities 3.1 2.8 Noncurrent liabilities Operating leases Long-term lease liabilities 98.8 104.5 Finance leases Other noncurrent liabilities 11.1 6.4 Total lease liabilities $ 145.5 $ 144.1 (1) The following table includes the weighted-average remaining lease terms, in years, and the weighted-average discount rate used to calculate the present value of operating lease liabilities: Years Ended October 31, 2023 2022 Weighted-average remaining lease term (years) Operating leases 5.5 5.7 Finance leases 5.2 3.5 Weighted-average discount rate Operating leases 4.60 % 4.09 % Finance leases 5.28 % 3.82 % |
Schedule of Lease, Cost | The components of lease costs and classification within the Consolidated Statements of Comprehensive Income were as follows: Years Ended October 31, (in millions) 2023 2022 Operating lease costs: Operating expenses (1)(2) $ 70.6 $ 60.2 Selling, general and administrative expenses (3) 25.4 25.7 Finance lease costs: Operating expenses (4) 2.4 1.7 Interest expense (5) 0.5 0.4 Total lease costs $ 99.0 $ 88.1 (1) Related to certain parking arrangements. (2) Includes short-term lease costs and variable lease costs. (3) Includes short-term lease costs. (4) Represents amortization of leased assets. (5) Interest on lease liabilities. The following table presents information on short-term and variable lease costs: Years Ended October 31, (in millions) 2023 2022 Short-term lease costs $ 53.5 $ 43.3 Variable lease costs 6.4 6.0 Total short-term and variable lease costs $ 59.9 $ 49.3 The following table includes supplemental cash and non-cash information related to operating leases: Years Ended October 31, (in millions) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 37.9 $ 35.3 Operating cash flows from finance leases 0.5 0.4 Financing cash flows from finance leases 3.0 1.9 Lease assets obtained in exchange for new operating lease liabilities 28.7 23.1 |
Schedule of Maturities of Operating Lease Liabilities | The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our Consolidated Balance Sheets as of October 31, 2023, are as follows: (in millions) Operating Finance Total Fiscal 2024 $ 38.5 $ 3.8 $ 42.2 Fiscal 2025 27.9 3.8 31.7 Fiscal 2026 25.8 3.0 28.8 Fiscal 2027 19.4 1.4 20.8 Fiscal 2028 13.2 1.4 14.6 Thereafter 27.4 2.6 29.9 Total lease payments 152.1 15.9 168.0 Less: imputed interest 20.8 1.7 22.5 Present value of lease liabilities $ 131.3 $ 14.2 $ 145.5 |
Schedule of Maturities of Finance Lease Liabilities | The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our Consolidated Balance Sheets as of October 31, 2023, are as follows: (in millions) Operating Finance Total Fiscal 2024 $ 38.5 $ 3.8 $ 42.2 Fiscal 2025 27.9 3.8 31.7 Fiscal 2026 25.8 3.0 28.8 Fiscal 2027 19.4 1.4 20.8 Fiscal 2028 13.2 1.4 14.6 Thereafter 27.4 2.6 29.9 Total lease payments 152.1 15.9 168.0 Less: imputed interest 20.8 1.7 22.5 Present value of lease liabilities $ 131.3 $ 14.2 $ 145.5 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Common Share | Basic and Diluted Net Income Per Common Share Calculations Years Ended October 31, (in millions, except per share amounts) 2023 2022 2021 Net income $ 251.3 $ 230.4 $ 126.3 Weighted-average common and common equivalent 66.0 67.1 67.4 Effect of dilutive securities RSUs 0.2 0.2 0.3 Performance shares 0.2 0.2 0.2 Weighted-average common and common equivalent 66.3 67.5 68.0 Net income per common share Basic $ 3.81 $ 3.44 $ 1.87 Diluted $ 3.79 $ 3.41 $ 1.86 |
Schedule of Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans | Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans Years Ended October 31, (in millions) 2023 2022 2021 Anti-dilutive 0.3 — — |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis As of October 31, (in millions) Fair Value Hierarchy 2023 2022 Cash and cash equivalents (1) 1 $ 69.5 $ 73.0 Insurance deposits (2) 1 3.1 0.9 Assets held in funded deferred compensation plan (3) 1 4.0 4.1 Debt facilities (4) 2 1,313.8 1,271.3 Interest rate swap assets (5) 2 36.4 36.9 Preferred equity investments (6) 3 15.4 3.0 Contingent consideration (7) 3 13.4 59.0 (1) Cash and cash equivalents are stated at nominal value, which equals fair value. (2) Represents restricted deposits that are used to collateralize our insurance obligations and are stated at nominal value, which equals fair value. These insurance deposits are included in “Other noncurrent assets” on the accompanying Consolidated Balance Sheets. See Note 10, “Insurance,” for further information. (3) Represents investments held in Rabbi trusts associated with two of our deferred compensation plans, which we include in “Other noncurrent assets” on the accompanying Consolidated Balance Sheets. The fair value of the assets held in the funded deferred compensation plan is based on quoted market prices. See Note 12, “Employee Benefit Plans,” for further information. (4) Represents gross outstanding borrowings under our syndicated line of credit and term loan. Due to variable interest rates, the carrying value of outstanding borrowings under our line of credit and term loan approximates the fair value. See Note 11, “Debt,” for further information. (5) Represents interest rate swap derivatives designated as cash flow hedges. The fair values of the interest rate swaps are estimated based on the present value of the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows at current market interest rates using observable benchmarks for the Secured Overnight Financing Rate (“SOFR”) forward rates at the end of the period. At October 31, 2023 and 2022, our interest rate swap assets and liabilities are included in “Other noncurrent assets” and “Other noncurrent liabilities,” respectively, on the accompanying Consolidated Balance Sheets. See Note 11, “Debt,” for further information. (6) We purchased $12.4 million in a preferred equity investment and preferred stock warrants of a privately held company that specializes in the development of electric vehicle charging stations and related software during the year ended October 31, 2023, which we include within “Other investments” on the accompanying Consolidated Balance Sheet. Our total investments in preferred equity securities amounted to $15.4 million at October 31, 2023. Our investments do not have a readily determinable fair value; therefore, we account for the investments using the measurement alternative under Topic 321 and measure the investments at initial cost less impairment, if any. (7) At October 31, 2023, our contingent consideration payable related to the RavenVolt Acquisition is recorded at fair value as a liability on the acquisition date and is remeasured at each reporting date, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. At September 1, 2022, we recorded the contingent consideration at fair value of $59.0 million. After the acquisition date and until the contingency is resolved, the fair value of contingent consideration payable is adjusted each reporting period based primarily on the expected probability of achievement of the contingency targets which are subject to our estimate. These changes in fair value are recognized within “Selling, general and administrative expenses” of the Consolidated Statements of Comprehensive Income. See Note 3, “Acquisitions,” for further information. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, Plant and Equipment As of October 31, (in millions) 2023 2022 Machinery and other equipment $ 170.7 $ 158.7 Computer equipment and software 110.7 106.8 Transportation equipment 79.0 64.1 Leasehold improvements 69.3 67.0 Furniture and fixtures 19.8 17.3 Buildings 7.7 7.7 Land 0.8 0.7 458.0 422.2 Less: Accumulated depreciation (1) 326.5 296.9 Total $ 131.5 $ 125.4 (1) For 2023, 2022, and 2021, depreciation expense was $44.2 million, $40.3 million, and $45.0 million, respectively. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (in millions) Business & Industry Manufacturing & Distribution Education Aviation Technical Solutions Total Balance at October 31, 2021 $ 1,129.8 $ 407.2 $ 459.3 $ 69.9 $ 162.7 2,228.9 Acquisitions 61.7 — — — 207.5 269.2 Foreign currency translation (8.7) — — (1.1) (2.7) (12.6) Reallocation (1) (95.0) 95.0 — — — — Balance at October 31, 2022 $ 1,087.8 $ 502.2 $ 459.3 $ 68.7 $ 367.4 $ 2,485.6 Acquisitions (2) 1.3 — — — (0.1) 1.1 Foreign currency translation 3.6 — — 0.3 0.8 4.7 Balance at October 31, 2023 $ 1,092.9 $ 502.2 $ 459.3 $ 69.0 $ 368.0 $ 2,491.3 (1) In connection with the reorganization of our T&M segment in the first quarter of 2022, we reallocated $95.0 million of goodwill from our B&I segment to our M&D segment using a relative fair value approach. (2) |
Schedule of Other Intangible Assets | Other Intangible Assets As of October 31, 2023 2022 (in millions) Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer contracts and relationships $ 714.1 $ (413.2) $ 300.9 $ 801.6 $ (442.1) $ 359.6 Trademarks and trade names 12.1 (11.1) 1.0 21.4 (15.4) 6.1 Contract rights and other 15.0 (14.0) 1.1 15.3 (2.4) 12.9 Total (1) $ 741.2 $ (438.3) $ 302.9 $ 838.4 $ (459.8) $ 378.5 (1) |
Schedule of Estimated Annual Amortization Expense | Estimated Annual Amortization Expense for Each of the Next Five Years (in millions) 2024 2025 2026 2027 2028 Estimated amortization expense (1) $ 54.4 $ 47.4 $ 41.3 $ 35.9 $ 30.9 (1) These amounts could vary as acquisitions of additional intangible assets occur in the future and as acquisition accounting is finalized for existing acquisitions. |
INSURANCE (Tables)
INSURANCE (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Insurance Related Balances and Activity | Insurance-Related Balances and Activity As of October 31, (in millions) 2023 2022 Insurance claim reserves, excluding medical and dental $ 555.0 $ 551.0 Medical and dental claim reserves and other 9.5 8.1 Insurance recoverables 67.1 71.0 |
Schedule of Casualty Program Insurance Reserves Rollforward | Casualty Program Insurance Reserves Rollforward Years Ended October 31, (in millions) 2023 2022 2021 Net balance at beginning of year $ 479.9 $ 508.3 $ 434.8 Change in case reserves plus IBNR Claims — current year 154.2 145.7 117.9 Change in case reserves plus IBNR Claims — prior years (14.8) (36.8) (36.0) Claims paid (131.4) (129.1) (99.8) Acquisition (1) — (8.2) 91.6 Net balance, October 31 (2) 487.9 479.9 508.3 Recoverables 67.1 71.0 66.5 Gross balance, October 31 $ 555.0 $ 551.0 $ 574.8 (1) During 2021, insurance reserves increased as a result of the Able Acquisition. (2) |
Schedule of Instruments Used to Collateralize Insurance Obligations | Instruments Used to Collateralize Our Insurance Obligations As of October 31, (in millions) 2023 2022 Standby letters of credit $ 53.5 $ 153.7 Surety bonds and surety-backed letters of credit 178.0 73.2 Restricted insurance deposits 3.1 0.9 Total $ 234.7 $ 227.8 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | Components of Debt As of October 31, (in millions) 2023 2022 Current portion of long-term debt Gross term loan $ 32.5 $ 32.5 Unamortized deferred financing costs (1.0) (1.0) Current portion of term loan $ 31.5 $ 31.5 Receivables facility — 150.0 Current portion of debt $ 31.5 $ 181.5 Long-term debt Gross term loan $ 536.3 $ 568.8 Unamortized deferred financing costs (1.5) (2.4) Total noncurrent portion of term loan 534.8 566.3 Revolving line of credit (1)(2) 745.0 520.0 Long-term debt $ 1,279.8 $ 1,086.3 (1) Standby letters of credit amounted to $58.2 million at October 31, 2023. (2) At October 31, 2023, we had borrowing capacity of $483.0 million. |
Schedule of Long-Term Loan Maturities | As of October 31, 2023, the following principal payments are required under the term loan. (in millions) 2024 2025 2026 2027 2028 Debt maturities $ 32.5 $ 32.5 $ 1,248.8 $ — $ — |
Schedule of Interest Rate Swap | Notional Amount Fixed Interest Rate Effective Date Maturity Date $ 100.0 million 1.72% February 9, 2022 June 28, 2026 $ 150.0 million 1.85% February 25, 2022 June 28, 2026 $ 100.0 million 2.88% May 4, 2022 June 28, 2026 $ 218.8 million (1) 2.83% July 7, 2022 June 28, 2026 $ 81.3 million (1) 2.79% July 18, 2022 June 28, 2026 $ 170.0 million 3.81% November 1, 2022 June 28, 2026 (1) In July 2022, we entered into interest rate swap agreements with notional values totaling $300.0 million at inception. The notional amount reduces to $250.0 million in April 2024, $175.0 million in October 2024, and $100.0 million in October 2025 before maturing on June 28, 2026. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Information for the Plans | Information for the Plans As of October 31, (in millions) 2023 2022 Net obligations $ 6.1 $ 6.0 Projected benefit obligations (1) 11.9 12.2 Fair value of assets 5.8 6.2 (1) |
Schedule of Multiemployer Defined Benefit Pension Plans | Key Information for Individually Significant Multiemployer Defined Benefit Pension Plans (1) ($ in millions) Pension Protection Act Zone Status (3) FIP/RP Status (4) Contributions by ABM Surcharge Imposed (5) Expiration Dates of Collective Bargaining Agreements Pension Fund EIN/PN (2) 2023 2022 Pending/ 2023 2022 2021 Building Service 32BJ Pension Fund 13-1879376 / 001 Yellow 6/30/2022 Yellow 6/30/2021 Implemented $ 21.4 $ 22.7 $ 18.8 No 12/15/2023 - 12/31/2027 S.E.I.U National Industry Pension Fund 52-6148540 / 001 Red 12/31/2022 Red 12/31/2021 Implemented 19.3 17.6 10.9 Yes 6/30/2024 - 7/31/2025 Central Pension Fund of the IUOE & Participating Employers 36-6052390 / 001 Green 1/31/2023 Green 1/31/2022 N/A* 13.0 12.8 5.3 N/A* 12/23/2023 - 6/30/2026 SEIU Local 1 & Participating Employers Pension Trust 36-6486542 / 001 Green 9/30/2022 Green 9/30/2021 N/A* 4.8 5.8 3.9 N/A* 11/30/2023 - 5/31/2026 IUOE Stationary Engineers Local 39 Pension Plan 94-6118939 / 001 Green 12/31/2022 Green 12/31/2021 N/A* 4.6 4.4 6.6 N/A* 11/30/2026 - 12/31/2029 Western Conference of Teamsters Pension Plan 91-6145047 / 001 Green 12/31/2022 Green 12/31/2021 N/A* 2.4 2.2 2.0 N/A* 11/30/2026 - 12/31/2029 All Other Plans: 8.0 8.2 9.3 Total Contributions $ 73.6 $ 73.8 $ 56.8 *Not applicable (1) To determine individually significant plans, we evaluated several factors, including our total contributions to the plan, our significance to the plan in terms of participating employees and contributions, and the funded status of the plan. (2) The “EIN/PN” column provides the Employer Identification Number and the three-digit plan number assigned to the plan by the IRS. (3) The Pension Protection Act Zone Status columns provide the two most recently available Pension Protection Act zone statuses from each plan. The zone status is based on information provided to us and other participating employers and is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. (4) Indicates whether a Financial Improvement Plan (“FIP”) for yellow zone plans or a Rehabilitation Plan (“RP”) for red zone plans is pending or implemented. (5) Indicates whether our contribution in 2023 included an amount as imposed by a plan in the red zone in addition to the contribution rate specified in the applicable collective bargaining agreement. Multiemployer Pension Plans for which ABM Is a Significant Contributor Pension Fund Contributions to the plan exceeded more than 5% of total contributions per most currently available Forms 5500 Apartment Employees Trust Fund* 12/31/2022, 12/31/2021, and 12/31/2020 Arizona Sheet Metal Pension Trust Fund* 6/30/2022, 6/30/2021, and 6/30/2020 Building Service 32BJ Pension Fund 6/30/2022, 6/30/2021, and 6/30/2020 Building Service Pension Plan* 4/30/2022, 4/30/2021, and 4/30/2020 Central Pension Fund of the IUOE & Participating Employers 1/31/2023 Contract Cleaners Service Employees' Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 IUOE Stationary Engineers Local 39 Pension Plan 12/31/2022, 12/31/2021, and 12/30/2020 Local 210's Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 Local 670 Pension Plan* 12/31/2022 Massachusetts Service Employees Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 S.E.I.U National Industry Pension Fund 12/31/2022, 12/31/2021, and 12/31/2020 SEIU Local 1 & Participating Employers Pension Trust 9/30/2022, 9/30/2021, and 9/30/2020 Service Employees International Union Local 1 Cleveland Pension Plan* 12/31/2022, 12/31/2021, and 12/31/2020 Service Employees International Union Local 32BJ, District 36 Building Operators Pension Trust Fund* 12/31/2022, 12/31/2021, and 12/31/2020 Teamsters Local 617 Pension Fund* 2/28/2022, 2/28/2021, and 2/29/2020 U.S.W.U. Local 74 Welfare Fund* 12/31/2022, 12/31/2021, and 12/31/2020 * These plans are not separately listed in our multiemployer table as they represent an insignificant portion of our total multiemployer pension plan contributions. |
PREFERRED AND COMMON STOCK (Tab
PREFERRED AND COMMON STOCK (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Repurchase Activity | Years Ended October 31, (in millions, except per share amounts) 2023 2022 Total number of shares purchased 3.3 2.3 Average price paid per share (1) $ 41.06 $ 42.15 Total cash paid for share repurchases (1) $ 137.1 $ 97.5 (1) |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Expense by Type of Award and Related Income Tax Benefit | Compensation Expense by Type of Award and Related Income Tax Benefit Years Ended October 31, (in millions) 2023 2022 2021 RSUs $ 17.7 $ 18.5 $ 17.6 Performance shares 12.7 12.0 15.8 Share-based compensation expense before income taxes 30.5 30.5 33.5 Income tax benefit (8.6) (8.6) (9.4) Share-based compensation expense, net of taxes $ 21.8 $ 21.9 $ 24.1 |
Schedule of RSU Activity | RSU Activity Number of Weighted-Average Outstanding at October 31, 2022 1.0 $ 38.58 Granted 0.5 44.37 Vested (including 0.2 shares withheld for income taxes) (0.4) 38.80 Forfeited (0.1) 42.71 Outstanding at October 31, 2023 1.0 $ 41.09 |
Schedule of Performance Share Activity | Performance Share Activity Number of Shares Weighted-Average Outstanding at October 31, 2022 1.0 $ 41.30 Granted 0.4 46.47 Vested (including 0.1 shares withheld for income taxes) (0.4) 38.08 Performance adjustments — 52.78 Forfeited — 42.30 Outstanding at October 31, 2023 0.9 $ 44.43 |
Schedule of Monte Carlo Assumptions | In 2023, 2022, and 2021, we used the Monte Carlo simulation valuation technique to estimate the fair value of TSR performance share grants, which used the assumptions in the table below. Monte Carlo Assumptions 2023 2022 2021 Expected life (1) 2.81 years 2.81 years 2.81 years Expected stock price volatility (2) 39.9 % 41.8 % 42.9 % Risk-free interest rate (3) 4.0 % 1.1 % 0.2 % Stock price (4) $ 46.19 $ 42.88 $ 40.75 (1) The expected life represents the remaining performance period of the awards. (2) The expected volatility for each grant is determined based on the historical volatility of our common stock over a period equal to the remaining term of the performance period from the date of grant for all awards. (3) The risk-free interest rate is based on the continuous compounded yield on U.S. Treasury Constant Maturity Rates with varying remaining terms; the yield is determined over a time period commensurate with the performance period from the grant date. (4) The stock price is the closing price of our common stock on the valuation date. |
Schedule of Employee Stock Purchase Plan | Employee Stock Purchase Plan Years Ended October 31, (in millions, except per share amounts) 2023 2022 2021 Weighted-average fair value of granted purchase rights per share $ 2.23 $ 2.19 $ 2.17 Common stock issued 0.1 0.1 0.1 Fair value of common stock issued per share $ 42.40 $ 41.68 $ 41.18 Aggregate purchases $ 3.4 $ 3.4 $ 3.3 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Geographic Sources of Income Before Income Taxes | Geographic Sources of Income Before Income Taxes Years Ended October 31, (in millions) 2023 2022 2021 United States $ 294.3 $ 278.5 $ 152.8 Foreign 36.8 31.5 27.0 Income before income taxes $ 331.1 $ 310.0 $ 179.8 |
Schedule of Components of Income Tax Provision | Components of Income Tax Provision Years Ended October 31, (in millions) 2023 2022 2021 Current: Federal $ (50.6) $ 3.5 $ (66.3) State (25.0) (6.0) (27.4) Foreign (9.0) (9.4) (7.8) Deferred: Federal (0.5) (46.1) 34.9 State 5.3 (22.1) 13.2 Foreign 0.1 0.5 (0.1) Income tax provision $ (79.7) $ (79.6) $ (53.5) |
Schedule of Reconciliation of U.S. Statutory Tax Rate to Annual Effective Tax Rate | Reconciliation of the U.S. Statutory Tax Rate to Annual Effective Tax Rate Years Ended October 31, 2023 2022 2021 U.S. statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal tax benefit 6.9 7.7 6.8 Federal and state tax credits (1.0) (1.5) (2.6) Impact of foreign operations 0.8 (0.1) 0.3 Changes in uncertain tax positions 0.1 (2.5) 1.5 Incremental tax benefit from share-based compensation awards (0.7) (0.5) (0.4) Energy efficiency incentives (0.1) (0.3) (0.7) Nondeductible executive compensation 1.4 1.4 0.4 Nontaxable RavenVolt contingent consideration (3.9) — — Other nondeductible expenses 0.6 0.3 2.3 Other, net (1.0) 0.2 1.2 Effective tax rate 24.1 % 25.7 % 29.8 % |
Schedule of Components of Deferred Tax Assets and Liabilities | Components of Deferred Tax Assets and Liabilities As of October 31, (in millions) 2023 2022 Deferred tax assets attributable to: Self-insurance claims (net of recoverables) $ 95.2 $ 96.1 Deferred and other compensation 31.4 33.0 Accounts receivable allowances 7.8 5.8 Settlement liabilities 4.5 10.4 Other accruals 4.3 4.8 State taxes 1.5 1.2 State net operating loss carryforwards 2.6 3.2 Tax credits 2.3 3.1 Unrecognized tax benefits 3.6 3.3 Deferred payroll taxes — 18.1 Operating lease liabilities 27.3 31.0 Gross deferred tax assets 180.5 210.0 Valuation allowance (1.2) (1.6) Total deferred tax assets 179.3 208.4 Deferred tax liabilities attributable to: Property, plant and equipment (4.3) (5.4) Goodwill and other acquired intangibles (200.0) (222.9) Right-of-use assets (28.6) (31.9) Tax accounting method change (11.7) (17.1) Other comprehensive Income (8.4) (9.0) Other (11.3) (11.8) Total deferred tax liabilities (264.3) (298.1) Net deferred tax liabilities $ (85.0) $ (89.7) |
Schedule of Changes to the Valuation Allowance | Changes to the Valuation Allowance Years Ended October 31, (in millions) 2023 2022 2021 Valuation allowance at beginning of year $ 1.6 $ 2.2 $ 4.1 Other, net (0.4) (0.6) (1.9) Valuation allowance at end of year $ 1.2 $ 1.6 $ 2.2 |
Schedule of Reconciliation of Total Unrecognized Tax Benefits | Reconciliation of Total Unrecognized Tax Benefits Years Ended October 31, (in millions) 2023 2022 2021 Balance at beginning of year $ 22.0 $ 30.4 $ 35.5 Additions for tax positions related to the current year — — 3.7 Additions for tax positions related to prior years 2.1 0.3 0.3 Reductions for tax positions related to prior years (1.5) (1.5) (5.3) Reductions for lapse of statute of limitations (1.9) (7.2) (2.5) Settlements — — (1.3) Balance at end of year $ 20.7 $ 22.0 $ 30.4 |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | Financial Information by Reportable Segment Years Ended October 31, (in millions) 2023 2022 2021 Revenues Business & Industry $ 4,089.4 $ 4,095.9 $ 2,853.8 Manufacturing & Distribution 1,526.7 1,445.2 1,363.1 Education 880.4 834.7 830.8 Aviation 925.7 804.0 651.1 Technical Solutions 674.2 626.8 529.8 $ 8,096.4 $ 7,806.6 $ 6,228.6 Operating profit Business & Industry $ 315.6 $ 334.9 $ 285.9 Manufacturing & Distribution 161.7 161.8 155.5 Education 49.7 47.1 61.5 Aviation 60.0 29.3 32.1 Technical Solutions (1) 53.2 63.8 49.4 Government Services — (0.3) (0.2) Corporate (2) (3) (226.6) (284.5) (374.6) Adjustment for income from unconsolidated affiliates, included in Aviation (3.9) (2.4) (2.1) Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.3) (0.9) (1.2) 409.5 348.8 206.3 Income from unconsolidated affiliates 3.9 2.4 2.1 Interest expense (82.3) (41.1) (28.6) Income before income taxes $ 331.1 $ 310.0 $ 179.8 Depreciation and amortization Business & Industry $ 44.9 $ 47.1 $ 18.4 Manufacturing & Distribution 13.1 13.4 13.4 Education 22.5 25.4 30.5 Aviation 9.6 8.2 9.1 Technical Solutions 17.5 7.0 5.9 Corporate 13.1 11.4 12.7 $ 120.7 $ 112.4 $ 89.9 (1) Reflects a $7.6 million gain on the sale of assets during the year ended October 31, 2022. (2) Reflects adjustments to the fair value of the contingent consideration payable related to the RavenVolt Acquisition of $45.6 million and an employee retention credit totaling $24.0 million during the year ended October 31, 2023. (3) Reflects accrued litigation settlement reserve totaling $142.9 million for the Bucio case during the year ended October 31, 2021. |
Schedule of Geographic Information Based on the Country in Which the Sale Originated | Geographic Information Based on the Country in Which the Sale Originated (1) Years Ended October 31, (in millions) 2023 2022 2021 Revenues United States $ 7,565.6 $ 7,335.3 $ 5,847.8 All other countries 530.8 471.3 380.8 $ 8,096.4 $ 7,806.6 $ 6,228.6 (1) Substantially all of our long-lived assets are related to U.S. operations. |
THE COMPANY AND NATURE OF OPE_2
THE COMPANY AND NATURE OF OPERATIONS (Details) | 12 Months Ended |
Oct. 31, 2023 segment industry_group | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of industry groups | industry_group | 4 |
Number of technical solution segments | segment | 1 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Basis of Presentation [Line Items] | |||
Investments in unconsolidated affiliates | $ 28.8 | $ 14.5 | |
Revenues | 8,096.4 | 7,806.6 | $ 6,228.6 |
Advertising expense | 8.8 | 6 | 6.2 |
Employee retention credit | 24 | ||
Management Reimbursement Revenue | |||
Basis of Presentation [Line Items] | |||
Revenues | $ 302.3 | $ 280.6 | $ 240.3 |
Service Maintenance | |||
Basis of Presentation [Line Items] | |||
Service maintenance agreement term | 1 year | ||
Minimum | |||
Basis of Presentation [Line Items] | |||
Lease term | 1 year | ||
Maximum | |||
Basis of Presentation [Line Items] | |||
Lease term | 30 years | ||
Entities that provide specialized services | Maximum | |||
Basis of Presentation [Line Items] | |||
Non-controlling ownership interests | 20% | ||
Certain affiliated entities | Minimum | |||
Basis of Presentation [Line Items] | |||
Non-controlling ownership interests | 20% | ||
Certain affiliated entities | Maximum | |||
Basis of Presentation [Line Items] | |||
Non-controlling ownership interests | 50% |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives of Property, Plant and Equipment (Details) | Oct. 31, 2023 |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Computer equipment and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 7 years |
Machinery and other equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 3 years |
Machinery and other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
Transportation equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 1 year 6 months |
Transportation equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 10 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 40 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, estimated useful lives | 5 years |
ACQUISITIONS AND DISPOSITIONS -
ACQUISITIONS AND DISPOSITIONS - Narrative (Details) - USD ($) | 12 Months Ended | |||||||||
Oct. 31, 2023 | Sep. 01, 2022 | Apr. 07, 2022 | Sep. 30, 2021 | Dec. 31, 2026 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Dec. 31, 2025 | Dec. 31, 2024 | |
Business Acquisition [Line Items] | ||||||||||
Change in fair value of contingent consideration | $ 45,600,000 | $ 0 | $ 0 | |||||||
Goodwill | $ 2,491,300,000 | 2,491,300,000 | $ 2,485,600,000 | 2,228,900,000 | ||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | |||||||||
Technical Solutions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 368,000,000 | 368,000,000 | $ 367,400,000 | $ 162,700,000 | ||||||
Technical Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Customer Contracts For Healthcare Technology Management | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Sale of customer contracts for clinical engineering services, consideration | 8,500,000 | |||||||||
Gain on sale of government services business | 7,600,000 | |||||||||
Fair Value, Inputs, Level 3 | Fair Value Measurements, Recurring | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of contingent consideration | 13,400,000 | 13,400,000 | $ 59,000,000 | |||||||
RavenVolt | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash purchase price | $ 170,000,000 | |||||||||
Fair value of contingent consideration | 59,000,000 | |||||||||
Goodwill tax deductible amount | 0 | |||||||||
Goodwill | 207,400,000 | |||||||||
Intangibles acquired | 16,700,000 | |||||||||
RavenVolt | Fair Value, Inputs, Level 3 | Fair Value Measurements, Recurring | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Fair value of contingent consideration | 13,400,000 | 13,400,000 | ||||||||
Change in fair value of contingent consideration | $ 45,600,000 | $ 45,600,000 | ||||||||
RavenVolt | Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum contingent consideration payable in future years | $ 130,000,000 | $ 75,000,000 | $ 75,000,000 | |||||||
RavenVolt | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Potential post-closing contingent consideration | $ 280,000,000 | |||||||||
RavenVolt | Maximum | Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Potential post-closing contingent consideration | $ 280,000,000 | |||||||||
Momentum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill tax deductible amount | $ 0 | |||||||||
Aggregate purchase price | 54,800,000 | |||||||||
Goodwill | 42,900,000 | |||||||||
Intangibles acquired | 10,400,000 | |||||||||
Total assets acquired, excluding goodwill and intangibles | 20,400,000 | |||||||||
Liabilities assumed | $ 18,900,000 | |||||||||
Able | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Aggregate purchase price | $ 741,700,000 | |||||||||
Cash consideration placed in escrow | 12,100,000 | |||||||||
Cash consideration placed in escrow for indemnification asset | 8,200,000 | |||||||||
Able | Revolving Credit Facility | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from lines of credit | $ 325,000,000 | |||||||||
Weighted average interest rate | 1.58% |
ACQUISITIONS AND DISPOSITIONS_2
ACQUISITIONS AND DISPOSITIONS - Schedule of the Final Acquisition Accounting (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 | Sep. 01, 2022 | Oct. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,491.3 | $ 2,485.6 | $ 2,228.9 | |
RavenVolt | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 29 | |||
Trade accounts receivable | 16.5 | |||
Other assets | 3.8 | |||
Intangible assets | 16.7 | |||
Goodwill | 207.4 | |||
Trade accounts payable | (5.2) | |||
Deferred revenue | (31.6) | |||
Other accrued liabilities | (3.2) | |||
Deferred income tax liability, net | (4.5) | |||
Net assets acquired | $ 228.9 |
REVENUES - Schedule of Disaggre
REVENUES - Schedule of Disaggregation of Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenue from External Customer [Line Items] | |||
Revenues | $ 8,096.4 | $ 7,806.6 | $ 6,228.6 |
Business & Industry | |||
Revenue from External Customer [Line Items] | |||
Revenues | 4,089.4 | 4,095.9 | 2,853.8 |
M&D | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,526.7 | 1,445.2 | 1,363.1 |
Education | |||
Revenue from External Customer [Line Items] | |||
Revenues | 880.4 | 834.7 | 830.8 |
Aviation | |||
Revenue from External Customer [Line Items] | |||
Revenues | 925.7 | 804 | 651.1 |
Technical Solutions | |||
Revenue from External Customer [Line Items] | |||
Revenues | 674.2 | 626.8 | $ 529.8 |
Janitorial | |||
Revenue from External Customer [Line Items] | |||
Revenues | 4,997.7 | 4,829.4 | |
Janitorial | Business & Industry | |||
Revenue from External Customer [Line Items] | |||
Revenues | 2,745.2 | 2,746.6 | |
Janitorial | M&D | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,330.8 | 1,242.4 | |
Janitorial | Education | |||
Revenue from External Customer [Line Items] | |||
Revenues | 774.8 | 720.6 | |
Janitorial | Aviation | |||
Revenue from External Customer [Line Items] | |||
Revenues | 146.9 | 119.8 | |
Janitorial | Technical Solutions | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Parking | |||
Revenue from External Customer [Line Items] | |||
Revenues | 780.8 | 703.6 | |
Parking | Business & Industry | |||
Revenue from External Customer [Line Items] | |||
Revenues | 408.2 | 354.3 | |
Parking | M&D | |||
Revenue from External Customer [Line Items] | |||
Revenues | 42.5 | 36.6 | |
Parking | Education | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0.8 | 0.9 | |
Parking | Aviation | |||
Revenue from External Customer [Line Items] | |||
Revenues | 329.3 | 311.7 | |
Parking | Technical Solutions | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Facility Services | |||
Revenue from External Customer [Line Items] | |||
Revenues | 1,226.2 | 1,302.7 | |
Facility Services | Business & Industry | |||
Revenue from External Customer [Line Items] | |||
Revenues | 936 | 995 | |
Facility Services | M&D | |||
Revenue from External Customer [Line Items] | |||
Revenues | 153.4 | 166.2 | |
Facility Services | Education | |||
Revenue from External Customer [Line Items] | |||
Revenues | 104.8 | 113.2 | |
Facility Services | Aviation | |||
Revenue from External Customer [Line Items] | |||
Revenues | 32 | 28.3 | |
Facility Services | Technical Solutions | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Building & Energy Solutions | |||
Revenue from External Customer [Line Items] | |||
Revenues | 674.2 | 626.8 | |
Building & Energy Solutions | Business & Industry | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Building & Energy Solutions | M&D | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Building & Energy Solutions | Education | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Building & Energy Solutions | Aviation | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Building & Energy Solutions | Technical Solutions | |||
Revenue from External Customer [Line Items] | |||
Revenues | 674.2 | 626.8 | |
Airline Services | |||
Revenue from External Customer [Line Items] | |||
Revenues | 417.5 | 344.2 | |
Airline Services | Business & Industry | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Airline Services | M&D | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Airline Services | Education | |||
Revenue from External Customer [Line Items] | |||
Revenues | 0 | 0 | |
Airline Services | Aviation | |||
Revenue from External Customer [Line Items] | |||
Revenues | 417.5 | 344.2 | |
Airline Services | Technical Solutions | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 0 | $ 0 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 332.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation | 69% |
Remaining performance obligation period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-11-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period |
REVENUES - Schedule of Contract
REVENUES - Schedule of Contract Asset and Liability (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Billed trade receivables | $ 1,219,600,000 | $ 1,138,800,000 |
Unbilled trade receivables | 170,400,000 | 162,500,000 |
Costs incurred in excess of amounts billed | 139,200,000 | 75,800,000 |
Capitalized commissions | 30,200,000 | $ 30,900,000 |
Capitalized contract price | 14,500,000 | |
Amortization of previously capitalized contract costs | 15,200,000 | |
Impairment loss recorded on costs capitalized | 0 | |
Contract with Customer, Liabilities [Roll Forward] | ||
Contract liabilities, balance at beginning of period | 79,600,000 | |
Additional contract liabilities | 335,900,000 | |
Recognition of deferred revenue | (274,300,000) | |
Contract liabilities, balance at end of period | $ 141,200,000 |
LEASES - Schedule of Components
LEASES - Schedule of Components of Lease assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Lease assets | ||
Operating leases | $ 113.4 | $ 115.2 |
Finance leases | $ 15.2 | $ 10 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net of accumulated depreciation of $326.5 and $296.9 at October 31, 2023 and 2022, respectively | Property, plant and equipment, net of accumulated depreciation of $326.5 and $296.9 at October 31, 2023 and 2022, respectively |
Total lease assets | $ 128.6 | $ 125.2 |
Current liabilities | ||
Operating leases | 32.5 | 30.3 |
Finance leases | $ 3.1 | $ 2.8 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Noncurrent liabilities | ||
Operating leases | $ 98.8 | $ 104.5 |
Finance leases | $ 11.1 | $ 6.4 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | Other noncurrent liabilities |
Total lease liabilities | $ 145.5 | $ 144.1 |
Accumulated amortization of finance lease assets | $ 18.9 | $ 16.9 |
LEASES - Schedule of Lease, Cos
LEASES - Schedule of Lease, Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Finance lease costs: | ||
Operating expenses | $ 2.4 | $ 1.7 |
Interest expense | 0.5 | 0.4 |
Total lease costs | 99 | 88.1 |
Short-term lease costs | 53.5 | 43.3 |
Variable lease costs | 6.4 | 6 |
Total short-term and variable lease costs | 59.9 | 49.3 |
Operating Expenses | ||
Operating lease costs: | ||
Operating lease, cost | 70.6 | 60.2 |
Selling, General and Administrative Expenses | ||
Operating lease costs: | ||
Operating lease, cost | $ 25.4 | $ 25.7 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating and Finance Lease Liabilities (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Operating Lease Liabilities | |
Fiscal 2024 | $ 38.5 |
Fiscal 2025 | 27.9 |
Fiscal 2026 | 25.8 |
Fiscal 2027 | 19.4 |
Fiscal 2028 | 13.2 |
Thereafter | 27.4 |
Total lease payments | 152.1 |
Less: imputed interest | 20.8 |
Present value of lease liabilities | 131.3 |
Finance Lease Liabilities | |
Fiscal 2024 | 3.8 |
Fiscal 2025 | 3.8 |
Fiscal 2026 | 3 |
Fiscal 2027 | 1.4 |
Fiscal 2028 | 1.4 |
Thereafter | 2.6 |
Total lease payments | 15.9 |
Less: imputed interest | 1.7 |
Present value of lease liabilities | 14.2 |
Total | |
Fiscal 2024 | 42.2 |
Fiscal 2025 | 31.7 |
Fiscal 2026 | 28.8 |
Fiscal 2027 | 20.8 |
Fiscal 2028 | 14.6 |
Thereafter | 29.9 |
Total lease payments | 168 |
Less: imputed interest | 22.5 |
Present value of lease liabilities | $ 145.5 |
LEASES - Schedule of Weighted A
LEASES - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details) | Oct. 31, 2023 | Oct. 31, 2022 |
Weighted-average remaining lease term (years) | ||
Operating leases | 5 years 6 months | 5 years 8 months 12 days |
Finance leases | 5 years 2 months 12 days | 3 years 6 months |
Weighted-average discount rate | ||
Operating leases | 4.60% | 4.09% |
Finance leases | 5.28% | 3.82% |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash and Non-cash Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 37.9 | $ 35.3 | |
Operating cash flows from finance leases | 0.5 | 0.4 | |
Financing cash flows from finance leases | 3 | 1.9 | $ 2.8 |
Lease assets obtained in exchange for new operating lease liabilities | $ 28.7 | $ 23.1 |
NET INCOME PER COMMON SHARE - S
NET INCOME PER COMMON SHARE - Schedule of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | |||
Net income | $ 251.3 | $ 230.4 | $ 126.3 |
Weighted-average common and common equivalent shares outstanding—Basic (in shares) | 66 | 67.1 | 67.4 |
Effect of dilutive securities | |||
Weighted-average common and common equivalent shares outstanding—Diluted (in shares) | 66.3 | 67.5 | 68 |
Net income per common share | |||
Basic (in USD per share) | $ 3.81 | $ 3.44 | $ 1.87 |
Diluted (in USD per share) | $ 3.79 | $ 3.41 | $ 1.86 |
RSUs | |||
Effect of dilutive securities | |||
Effect of dilutive securities (in shares) | 0.2 | 0.2 | 0.3 |
Performance shares | |||
Effect of dilutive securities | |||
Effect of dilutive securities (in shares) | 0.2 | 0.2 | 0.2 |
NET INCOME PER COMMON SHARE -_2
NET INCOME PER COMMON SHARE - Schedule of Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans (Details) - shares shares in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive (in shares) | 0.3 | 0 | 0 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 | Sep. 01, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Preferred equity investments | $ 15.4 | ||
RavenVolt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration | $ 59 | ||
Privately Held Company | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Preferred equity investments | 12.4 | ||
Fair Value Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 69.5 | $ 73 | |
Insurance deposits | 3.1 | 0.9 | |
Assets held in funded deferred compensation plan | 4 | 4.1 | |
Fair Value Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt facilities | 1,313.8 | 1,271.3 | |
Interest rate swaps assets | 36.4 | 36.9 | |
Fair Value Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Preferred equity investments | 15.4 | 3 | |
Contingent Consideration | 13.4 | $ 59 | |
Fair Value Measurements, Recurring | Fair Value, Inputs, Level 3 | RavenVolt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent Consideration | $ 13.4 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2022 | Jul. 31, 2021 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Reallocation of goodwill | $ 0 | ||||
Goodwill | $ 2,491,300,000 | 2,485,600,000 | $ 2,228,900,000 | ||
Non-cash impairment charge | 0 | 0 | 9,100,000 | ||
Carrying value of fixed assets | 131,500,000 | 125,400,000 | |||
Corporate | Internal Use Software | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Non-cash impairment charge | $ 9,100,000 | ||||
Carrying value of fixed assets | 0 | ||||
M&D | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Reallocation of goodwill | 95,000,000 | ||||
Goodwill | $ 502,200,000 | 502,200,000 | 502,200,000 | 407,200,000 | |
M&D | Reorganization of Business Segments, From B&I Segment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Reallocation of goodwill | 95,000,000 | ||||
M&D | Reorganization of Business Segments, From T&M Segment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Goodwill | 407,200,000 | ||||
B&I | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Reallocation of goodwill | (95,000,000) | ||||
Goodwill | $ 1,092,900,000 | $ 1,087,800,000 | $ 1,129,800,000 | ||
B&I | Reorganization of Business Segments, From B&I Segment | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Reallocation of goodwill | $ (95,000,000) |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 458 | $ 422.2 | |
Less: Accumulated depreciation | 326.5 | 296.9 | |
Total | 131.5 | 125.4 | |
Depreciation expense | 44.2 | 40.3 | $ 45 |
Machinery and other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 170.7 | 158.7 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 110.7 | 106.8 | |
Transportation equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 79 | 64.1 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 69.3 | 67 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 19.8 | 17.3 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 7.7 | 7.7 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 0.8 | $ 0.7 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | |
Goodwill [Roll Forward] | |||
Beginning balance | $ 2,228.9 | $ 2,485.6 | $ 2,228.9 |
Acquisitions | 1.1 | 269.2 | |
Foreign currency translation | 4.7 | (12.6) | |
Reallocation | 0 | ||
Ending balance | 2,491.3 | 2,485.6 | |
Business & Industry | |||
Goodwill [Roll Forward] | |||
Beginning balance | 1,129.8 | 1,087.8 | 1,129.8 |
Acquisitions | 1.3 | 61.7 | |
Foreign currency translation | 3.6 | (8.7) | |
Reallocation | (95) | ||
Ending balance | 1,092.9 | 1,087.8 | |
Business & Industry | Reorganization of Business Segments, From B&I Segment | |||
Goodwill [Roll Forward] | |||
Reallocation | (95) | ||
Manufacturing & Distribution | |||
Goodwill [Roll Forward] | |||
Beginning balance | 407.2 | 502.2 | 407.2 |
Acquisitions | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Reallocation | 95 | ||
Ending balance | 502.2 | 502.2 | 502.2 |
Manufacturing & Distribution | Reorganization of Business Segments, From B&I Segment | |||
Goodwill [Roll Forward] | |||
Reallocation | 95 | ||
Education | |||
Goodwill [Roll Forward] | |||
Beginning balance | 459.3 | 459.3 | 459.3 |
Acquisitions | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Reallocation | 0 | ||
Ending balance | 459.3 | 459.3 | |
Aviation | |||
Goodwill [Roll Forward] | |||
Beginning balance | 69.9 | 68.7 | 69.9 |
Acquisitions | 0 | 0 | |
Foreign currency translation | 0.3 | (1.1) | |
Reallocation | 0 | ||
Ending balance | 69 | 68.7 | |
Technical Solutions | |||
Goodwill [Roll Forward] | |||
Beginning balance | $ 162.7 | 367.4 | 162.7 |
Acquisitions | (0.1) | 207.5 | |
Foreign currency translation | 0.8 | (2.7) | |
Reallocation | 0 | ||
Ending balance | $ 368 | $ 367.4 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment charges | $ 0 | $ 0 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 741.2 | $ 838.4 |
Accumulated Amortization | (438.3) | (459.8) |
Total | $ 302.9 | $ 378.5 |
Intangible assets weighted average life | 11 years | 11 years |
Customer contracts and relationships | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 714.1 | $ 801.6 |
Accumulated Amortization | (413.2) | (442.1) |
Total | 300.9 | 359.6 |
Trademarks and trade names | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 12.1 | 21.4 |
Accumulated Amortization | (11.1) | (15.4) |
Total | 1 | 6.1 |
Contract rights and other | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15 | 15.3 |
Accumulated Amortization | (14) | (2.4) |
Total | $ 1.1 | $ 12.9 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Annual Amortization Expense (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated amortization expense in 2024 | $ 54.4 |
Estimated amortization expense in 2025 | 47.4 |
Estimated amortization expense in 2026 | 41.3 |
Estimated amortization expense in 2027 | 35.9 |
Estimated amortization expense in 2028 | $ 30.9 |
INSURANCE - Narrative (Details)
INSURANCE - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Nov. 01, 2023 | |
Schedule of Other Liabilities [Line Items] | ||||
Insurance policy coverage, general and automobile liability losses | $ 200 | |||
Insurance policy coverage, property damage | 75 | |||
Change in case reserves plus IBNR Claims — prior years | 14.8 | $ 36.8 | $ 36 | |
Minimum | ||||
Schedule of Other Liabilities [Line Items] | ||||
Self insurance retention amount per-claim | 1 | |||
Primary policy limit | 1 | |||
Minimum | Subsequent Event | ||||
Schedule of Other Liabilities [Line Items] | ||||
Self insurance retention amount per-claim | $ 1 | |||
Maximum | ||||
Schedule of Other Liabilities [Line Items] | ||||
Self insurance retention amount per-claim | 1.5 | |||
Primary policy limit | 5 | |||
Self insurance retention amount per-claim, medical plan | $ 0.5 | |||
Maximum | Subsequent Event | ||||
Schedule of Other Liabilities [Line Items] | ||||
Self insurance retention amount per-claim | $ 5 |
INSURANCE - Schedule of Insuran
INSURANCE - Schedule of Insurance Related Balances and Activity (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance recoverables | $ 67.1 | $ 71 |
Insurance claim reserves, excluding medical and dental | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance claims reserves | 555 | 551 |
Medical and dental claim reserves and other | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance claims reserves | $ 9.5 | $ 8.1 |
INSURANCE - Schedule of Casualt
INSURANCE - Schedule of Casualty Program Insurance Reserves Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Net balance at beginning of year | $ 479.9 | $ 508.3 | $ 434.8 |
Change in case reserves plus IBNR Claims — current year | 154.2 | 145.7 | 117.9 |
Change in case reserves plus IBNR Claims — prior years | (14.8) | (36.8) | (36) |
Claims paid | (131.4) | (129.1) | (99.8) |
Acquisition | 0 | (8.2) | 91.6 |
Net balance at end of year | 487.9 | 479.9 | 508.3 |
Recoverables | 67.1 | 71 | 66.5 |
Gross balance at end of year | 555 | 551 | 574.8 |
Reserves related to discontinued operations | $ 0.1 | $ 0.2 | $ 0.3 |
INSURANCE - Schedule of Instrum
INSURANCE - Schedule of Instruments Used to Collateralize Insurance Obligations (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | $ 234.7 | $ 227.8 |
Standby letters of credit | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | 53.5 | 153.7 |
Surety bonds and surety-backed letters of credit | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | 178 | 73.2 |
Restricted insurance deposits | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | $ 3.1 | $ 0.9 |
DEBT - Schedule of Components o
DEBT - Schedule of Components of Debt (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 | Mar. 01, 2022 |
Current portion of long-term debt | |||
Gross term loan | $ 32.5 | $ 32.5 | |
Unamortized deferred financing costs | (1) | (1) | |
Current portion of term loan | 31.5 | 31.5 | |
Receivables facility | 0 | 150 | $ 150 |
Current portion of debt | 31.5 | 181.5 | |
Long-term debt | |||
Gross term loan | 536.3 | 568.8 | |
Unamortized deferred financing costs | (1.5) | (2.4) | |
Total noncurrent portion of term loan | 534.8 | 566.3 | |
Revolving line of credit | 745 | 520 | |
Long-term debt | 1,279.8 | $ 1,086.3 | |
Standby letters of credit | 58.2 | ||
Borrowing capacity | $ 483 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 12 Months Ended | |||||||||
Nov. 01, 2022 | Sep. 01, 2017 USD ($) | Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Mar. 01, 2022 USD ($) | Jun. 28, 2021 USD ($) | Jun. 27, 2021 USD ($) | Sep. 01, 2018 USD ($) | Aug. 31, 2017 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Deferred financing costs | $ 12,600,000 | |||||||||
Receivables facility | $ 0 | $ 150,000,000 | $ 150,000,000 | |||||||
Debt instrument, periodic payment, principal | 32,500,000 | |||||||||
Interest expense | 82,300,000 | 41,100,000 | $ 28,600,000 | |||||||
Interest rate cash flow hedge gain to be reclassified during next 12 months, net | 9,800,000 | |||||||||
Tax to be reclassified during the next 12 months | 3,800,000 | |||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Net gain (loss) from cash flow hedges recorded in accumulated other comprehensive loss, net of tax | 26,000,000 | 26,800,000 | ||||||||
Tax related to amounts in accumulated other comprehensive loss | $ 10,500,000 | 10,100,000 | ||||||||
Interest expense | 3,500,000 | |||||||||
Interest expense, tax | $ 1,300,000 | |||||||||
Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred financing costs | 7,700,000 | |||||||||
Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred financing costs | 4,900,000 | |||||||||
Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Weighted average interest rate | 7.17% | 4.97% | ||||||||
Line of credit facility, term | 5 years | |||||||||
Floor on credit spread adjustment | 0 | |||||||||
Total net leverage ratio | 5 | |||||||||
Secured net leverage ratio | 4 | |||||||||
Interest coverage ratio | 1.50 | |||||||||
Deferred financing costs | 6,400,000 | |||||||||
Credit Facility | Scenario, Material Acquisition | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total net leverage ratio | 5.50 | |||||||||
Secured net leverage ratio | 4.50 | |||||||||
Credit Facility | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.10% | |||||||||
Credit Facility | Standby letters of credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing capacity | 350,000,000 | |||||||||
Credit Facility | Swing Line Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing capacity | 75,000,000 | |||||||||
Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, borrowing capacity | $ 900,000,000 | 1,300,000,000 | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | |||||
Credit Facility | Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 800,000,000 | 650,000,000 | $ 620,000,000 | |||||||
Deferred financing costs | $ 6,200,000 |
DEBT - Schedule of Long-Term Lo
DEBT - Schedule of Long-Term Loan Maturities (Details) - Term Loan $ in Millions | Oct. 31, 2023 USD ($) |
Term Loan Maturities | |
2024 | $ 32.5 |
2025 | 32.5 |
2026 | 1,248.8 |
2027 | 0 |
2028 | $ 0 |
DEBT - Schedule of Interest Rat
DEBT - Schedule of Interest Rate Swaps (Details) - USD ($) | Oct. 31, 2025 | Oct. 31, 2024 | Apr. 30, 2024 | Nov. 01, 2022 | Jul. 31, 2022 | Jul. 18, 2022 | Jul. 07, 2022 | May 04, 2022 | Feb. 25, 2022 | Feb. 09, 2022 |
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 300,000,000 | |||||||||
Forecast | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 100,000,000 | $ 175,000,000 | $ 250,000,000 | |||||||
Interest Rate Swap, Effective 2/9/2022 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 100,000,000 | |||||||||
Fixed Interest Rate | 1.72% | |||||||||
Interest Rate Swap, Effective 2/25/2022 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 150,000,000 | |||||||||
Fixed Interest Rate | 1.85% | |||||||||
Interest Rate Swap, Effective 5/4/2022 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 100,000,000 | |||||||||
Fixed Interest Rate | 2.88% | |||||||||
Interest Rate Swap, Effective 7/7/2022 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 218,800,000 | |||||||||
Fixed Interest Rate | 2.83% | |||||||||
Interest Rate Swap, Effective 7/18/2022 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 81,300,000 | |||||||||
Fixed Interest Rate | 2.79% | |||||||||
Interest Rate Swap, Effective 11/1/2022 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 170,000,000 | |||||||||
Fixed Interest Rate | 3.81% |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Information for the Plans (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Net obligations | $ 6.1 | $ 6 |
Projected benefit obligations | 11.9 | 12.2 |
Fair value of assets | 5.8 | 6.2 |
Unfunded Plan | ||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||
Projected benefit obligations | $ 11.9 | $ 12.2 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 USD ($) plan | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Expected return on assets | $ 0.2 | $ 0.4 | $ 0.3 |
Net periodic benefit cost | 0.6 | 0.1 | 0.3 |
Expected future benefit payments | $ 11 | ||
Number of defined contribution plans | plan | 2 | ||
Cost recognized | $ 29.8 | 27.7 | 21.6 |
Defined Contribution Plans | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Cost recognized | 59.2 | 54.7 | 21.2 |
Multiemployer Plans, Postretirement Benefit Plans | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Contributions by ABM | 441.8 | 426.6 | 270.8 |
Rabbi Trust | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Fair value deferred compensation plan assets | 4 | 4.1 | |
Deferred Compensation Plans | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total liability of deferred compensation | 27 | 27.5 | |
Compensation expense | $ 0.5 | $ 0.3 | $ 0.2 |
EMPLOYEE BENEFIT PLANS - Sche_2
EMPLOYEE BENEFIT PLANS - Schedule of Multiemployer Defined Benefit Pension Plans (Details) - Multiemployer Plans, Pension Plans - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Multiemployer Plans [Line Items] | |||
Total Contributions | $ 73.6 | $ 73.8 | $ 56.8 |
Building Service 32BJ Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions by ABM, significant | 21.4 | 22.7 | 18.8 |
S.E.I.U National Industry Pension Fund | |||
Multiemployer Plans [Line Items] | |||
Contributions by ABM, significant | 19.3 | 17.6 | 10.9 |
Central Pension Fund of the IUOE & Participating Employers | |||
Multiemployer Plans [Line Items] | |||
Contributions by ABM, significant | 13 | 12.8 | 5.3 |
SEIU Local 1 & Participating Employers Pension Trust | |||
Multiemployer Plans [Line Items] | |||
Contributions by ABM, significant | 4.8 | 5.8 | 3.9 |
IUOE Stationary Engineers Local 39 Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions by ABM, significant | 4.6 | 4.4 | 6.6 |
Western Conference of Teamsters Pension Plan | |||
Multiemployer Plans [Line Items] | |||
Contributions by ABM, significant | 2.4 | 2.2 | 2 |
All Other Plans | |||
Multiemployer Plans [Line Items] | |||
Contributions by ABM, insignificant | $ 8 | $ 8.2 | $ 9.3 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Oct. 31, 2023 | Oct. 31, 2022 |
Loss Contingencies [Line Items] | ||
Standby letters of credit | $ 58,200,000 | |
Surety bonds and surety-backed letters of credit | 776,200,000 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Amount of reasonably possible loss | 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Amount of reasonably possible loss | 5,700,000 | |
Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual | 13,900,000 | |
Energy Savings Contracts | ||
Loss Contingencies [Line Items] | ||
Guarantee obligation | $ 218,000,000 | $ 230,500,000 |
PREFERRED AND COMMON STOCK - Na
PREFERRED AND COMMON STOCK - Narrative (Details) - USD ($) | Dec. 13, 2023 | Oct. 31, 2023 | Dec. 09, 2022 | Oct. 31, 2022 | Dec. 18, 2019 |
Class of Stock [Line Items] | |||||
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | |||
Authorized repurchase amount of common stock | $ 150,000,000 | ||||
Expansion of share repurchase program | $ 150,000,000 | ||||
Remaining amount of authorized repurchases of common stock | $ 60,300,000 | ||||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Expansion of share repurchase program | $ 150,000,000 | ||||
Remaining amount of authorized repurchases of common stock | $ 210,300,000 |
PREFERRED AND COMMON STOCK - Sc
PREFERRED AND COMMON STOCK - Schedule of Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Total number of shares repurchased (in shares) | 3.3 | 2.3 |
Average price paid per share (in USD per share) | $ 41.06 | $ 42.15 |
Total cash paid for share repurchases | $ 137.1 | $ 97.5 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | May 01, 2006 | |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Exercisable rate | 50% | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 19,500,000 | |||
Weighted-average vesting period | 2 years | |||
Fair value per share of awards granted (in USD per share) | $ 44.37 | $ 41.63 | $ 40.22 | |
Total fair value of RSUs vested | $ 17,100,000 | $ 16,400,000 | $ 16,900,000 | |
RSUs | Certain Executive Employees | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Minimum service period at retirement | 10 years | |||
Grant period prior to termination | 1 year | |||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Total unrecognized compensation cost, net of estimated forfeitures | $ 18,300,000 | |||
Weighted-average vesting period | 1 year 10 months 24 days | |||
Fair value per share of awards granted (in USD per share) | $ 46.47 | $ 43.06 | $ 39.97 | |
Total fair value of RSUs vested | $ 14,600,000 | $ 13,600,000 | $ 9,000,000 | |
Service period | 3 years | |||
Performance shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercisable rate | 0% | |||
Performance shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercisable rate | 150% | |||
2006 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 0 | |||
2021 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 3,975,000 | |||
Number of shares available for grant (in shares) | 2,363,005 | |||
2004 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 4,000,000 | |||
Fair value percentage of common stock price | 95% | |||
Employee contribution percentage | 10% | |||
Maximum annual employee contribution | $ 25,000 | |||
Holding period for shares purchased in program | 6 months | |||
Number of shares unissued (in shares) | 357,656 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLANS - Schedule of Compensation Expense by Type of Award and Related Income Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense before income taxes | $ 30.5 | $ 30.5 | $ 33.5 |
Income tax benefit | (8.6) | (8.6) | (9.4) |
Share-based compensation expense, net of taxes | 21.8 | 21.9 | 24.1 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense before income taxes | 17.7 | 18.5 | 17.6 |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense before income taxes | $ 12.7 | $ 12 | $ 15.8 |
SHARE-BASED COMPENSATION PLAN_4
SHARE-BASED COMPENSATION PLANS - Schedule of RSU and Performance Share Activity (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
RSUs | |||
Number of Shares | |||
Beginning balance (in shares) | 1 | ||
Granted (in shares) | 0.5 | ||
Vested (in shares) | (0.4) | ||
Forfeited (in shares) | (0.1) | ||
Ending balance (in shares) | 1 | 1 | |
Weighted-Average Grant Date Fair Value per Share | |||
Beginning balance (in USD per share) | $ 38.58 | ||
Granted (in USD per share) | 44.37 | $ 41.63 | $ 40.22 |
Vested (in USD per share) | 38.80 | ||
Forfeited (in USD per share) | 42.71 | ||
Ending balance (in USD per share) | $ 41.09 | $ 38.58 | |
Shares withheld for income taxes (in shares) | 0.2 | ||
Performance shares | |||
Number of Shares | |||
Beginning balance (in shares) | 1 | ||
Granted (in shares) | 0.4 | ||
Vested (in shares) | (0.4) | ||
Performance adjustments (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Ending balance (in shares) | 0.9 | 1 | |
Weighted-Average Grant Date Fair Value per Share | |||
Beginning balance (in USD per share) | $ 41.30 | ||
Granted (in USD per share) | 46.47 | $ 43.06 | $ 39.97 |
Vested (in USD per share) | 38.08 | ||
Performance adjustments (in USD per share) | 52.78 | ||
Forfeited (in USD per share) | 42.30 | ||
Ending balance (in USD per share) | $ 44.43 | $ 41.30 | |
Shares withheld for income taxes (in shares) | 0.1 |
SHARE-BASED COMPENSATION PLAN_5
SHARE-BASED COMPENSATION PLANS - Schedule of Monte Carlo Assumptions (Details) - Performance shares - $ / shares | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 2 years 9 months 21 days | 2 years 9 months 21 days | 2 years 9 months 21 days |
Expected stock price volatility | 39.90% | 41.80% | 42.90% |
Risk-free interest rate | 4% | 1.10% | 0.20% |
Stock price (in USD per share) | $ 46.19 | $ 42.88 | $ 40.75 |
SHARE-BASED COMPENSATION PLAN_6
SHARE-BASED COMPENSATION PLANS - Schedule of Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of granted purchase rights per share (in USD per share) | $ 2.23 | $ 2.19 | $ 2.17 |
Common stock issued (in shares) | 0.1 | 0.1 | 0.1 |
Fair value of common stock issued per share (in USD per share) | $ 42.40 | $ 41.68 | $ 41.18 |
Aggregate purchases | $ 3.4 | $ 3.4 | $ 3.3 |
INCOME TAXES - Schedule of Geog
INCOME TAXES - Schedule of Geographic Sources of Income Before Income Taxes / Schedule of Reconciliation of U.S. Statutory Tax Rate to Annual Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 294.3 | $ 278.5 | $ 152.8 |
Foreign | 36.8 | 31.5 | 27 |
Income before income taxes | 331.1 | 310 | 179.8 |
Current: | |||
Federal | (50.6) | 3.5 | (66.3) |
State | (25) | (6) | (27.4) |
Foreign | (9) | (9.4) | (7.8) |
Deferred: | |||
Federal | (0.5) | (46.1) | 34.9 |
State | 5.3 | (22.1) | 13.2 |
Foreign | 0.1 | 0.5 | (0.1) |
Income tax provision | $ (79.7) | $ (79.6) | $ (53.5) |
INCOME TAXES - Schedule of Reco
INCOME TAXES - Schedule of Reconciliation of U.S. Statutory Tax Rate to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory rate | 21% | 21% | 21% |
State and local income taxes, net of federal tax benefit | 6.90% | 7.70% | 6.80% |
Federal and state tax credits | (1.00%) | (1.50%) | (2.60%) |
Impact of foreign operations | 0.80% | (0.10%) | 0.30% |
Changes in uncertain tax positions | 0.10% | (2.50%) | 1.50% |
Incremental tax benefit from share-based compensation awards | (0.70%) | (0.50%) | (0.40%) |
Energy efficiency incentives | (0.10%) | (0.30%) | (0.70%) |
Nondeductible executive compensation | 1.40% | 1.40% | 0.40% |
Nontaxable RavenVolt contingent consideration | (3.90%) | 0% | 0% |
Other nondeductible expenses | 0.60% | 0.30% | 2.30% |
Other, net | (1.00%) | 0.20% | 1.20% |
Effective tax rate | 24.10% | 25.70% | 29.80% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2023 USD ($) state | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Income Taxes [Line Items] | ||||||
Effective tax rate | 24.10% | 25.70% | 29.80% | |||
Income tax provision | $ 79.7 | $ 79.6 | $ 53.5 | |||
Benefit related to non-taxable change in fair value of contingent consideration related to acquisition | 12.8 | |||||
Income tax benefit for share-based compensation | 2.2 | 1.4 | ||||
Return to provision adjustments | (1.5) | 1.3 | ||||
Expense related to non-deductible executive compensation | 4.8 | |||||
Income tax benefit for expiring statues of limitations | 8.1 | |||||
Deferred payroll tax | $ 132 | |||||
Payment of deferred payroll tax | $ 66 | $ 66 | ||||
Tax credits | 2.7 | |||||
Unrecognized tax benefits that would impact effective tax rate | 22 | 30.4 | ||||
Maximum decrease in unrecognized tax benefits that is reasonably possible | 0.7 | |||||
Uncertain tax positions, interest and penalties accrued | 1.4 | 0.7 | ||||
Unrecognized tax benefits, interest and penalties expense | $ 0.7 | $ 0.1 | ||||
Unrecognized tax benefits, interest and penalties benefit | $ 0.9 | |||||
Number of states in which entity operates | state | 50 | |||||
State and Local Jurisdiction | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | $ 48.7 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Deferred tax assets attributable to: | ||
Self-insurance claims (net of recoverables) | $ 95.2 | $ 96.1 |
Deferred and other compensation | 31.4 | 33 |
Accounts receivable allowances | 7.8 | 5.8 |
Settlement liabilities | 4.5 | 10.4 |
Other accruals | 4.3 | 4.8 |
State taxes | 1.5 | 1.2 |
State net operating loss carryforwards | 2.6 | 3.2 |
Tax credits | 2.3 | 3.1 |
Unrecognized tax benefits | 3.6 | 3.3 |
Deferred payroll taxes | 0 | 18.1 |
Operating lease liabilities | 27.3 | 31 |
Gross deferred tax assets | 180.5 | 210 |
Valuation allowance | (1.2) | (1.6) |
Total deferred tax assets | 179.3 | 208.4 |
Deferred tax liabilities attributable to: | ||
Property, plant and equipment | (4.3) | (5.4) |
Goodwill and other acquired intangibles | (200) | (222.9) |
Right-of-use assets | (28.6) | (31.9) |
Tax accounting method change | (11.7) | (17.1) |
Other comprehensive Income | (8.4) | (9) |
Other | (11.3) | (11.8) |
Total deferred tax liabilities | (264.3) | (298.1) |
Net deferred tax liabilities | $ (85) | $ (89.7) |
INCOME TAXES - Schedule of Chan
INCOME TAXES - Schedule of Changes to the Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Operating Loss Carryforwards, Valuation Allowance Rollforward [Roll Forward] | |||
Valuation allowance at beginning of year | $ 1.6 | $ 2.2 | $ 4.1 |
Other, net | (0.4) | (0.6) | (1.9) |
Valuation allowance at end of year | $ 1.2 | $ 1.6 | $ 2.2 |
INCOME TAXES - Schedule of Re_2
INCOME TAXES - Schedule of Reconciliation of Total Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 22 | $ 30.4 | $ 35.5 |
Additions for tax positions related to the current year | 0 | 0 | 3.7 |
Additions for tax positions related to prior years | 2.1 | 0.3 | 0.3 |
Reductions for tax positions related to prior years | (1.5) | (1.5) | (5.3) |
Reductions for lapse of statute of limitations | (1.9) | (7.2) | (2.5) |
Settlements | 0 | 0 | (1.3) |
Ending Balance | $ 20.7 | $ 22 | $ 30.4 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Financial Information by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenues | ||||
Revenues | $ 8,096.4 | $ 7,806.6 | $ 6,228.6 | |
Operating profit | ||||
Operating profit | 409.5 | 348.8 | 206.3 | |
Income from unconsolidated affiliates | 3.9 | 2.4 | 2.1 | |
Interest expense | (82.3) | (41.1) | (28.6) | |
Income before income taxes | 331.1 | 310 | 179.8 | |
Depreciation and amortization | ||||
Depreciation and amortization | 120.7 | 112.4 | 89.9 | |
Change in fair value of contingent consideration | 45.6 | 0 | 0 | |
Employee retention credit | 24 | |||
RavenVolt | Fair Value Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Depreciation and amortization | ||||
Change in fair value of contingent consideration | $ 45.6 | 45.6 | ||
Bucio | Settled Litigation | ||||
Depreciation and amortization | ||||
Employee retention | 142.9 | |||
Business & Industry | ||||
Revenues | ||||
Revenues | 4,089.4 | 4,095.9 | 2,853.8 | |
Manufacturing & Distribution | ||||
Revenues | ||||
Revenues | 1,526.7 | 1,445.2 | 1,363.1 | |
Education | ||||
Revenues | ||||
Revenues | 880.4 | 834.7 | 830.8 | |
Aviation | ||||
Revenues | ||||
Revenues | 925.7 | 804 | 651.1 | |
Technical Solutions | ||||
Revenues | ||||
Revenues | 674.2 | 626.8 | 529.8 | |
Technical Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Customer Contracts For Healthcare Technology Management | ||||
Depreciation and amortization | ||||
Gain on sale of government services business | 7.6 | |||
Operating Segments | Business & Industry | ||||
Operating profit | ||||
Operating profit | 315.6 | 334.9 | 285.9 | |
Depreciation and amortization | ||||
Depreciation and amortization | 44.9 | 47.1 | 18.4 | |
Operating Segments | Manufacturing & Distribution | ||||
Operating profit | ||||
Operating profit | 161.7 | 161.8 | 155.5 | |
Depreciation and amortization | ||||
Depreciation and amortization | 13.1 | 13.4 | 13.4 | |
Operating Segments | Education | ||||
Operating profit | ||||
Operating profit | 49.7 | 47.1 | 61.5 | |
Depreciation and amortization | ||||
Depreciation and amortization | 22.5 | 25.4 | 30.5 | |
Operating Segments | Aviation | ||||
Operating profit | ||||
Operating profit | 60 | 29.3 | 32.1 | |
Depreciation and amortization | ||||
Depreciation and amortization | 9.6 | 8.2 | 9.1 | |
Operating Segments | Technical Solutions | ||||
Operating profit | ||||
Operating profit | 53.2 | 63.8 | 49.4 | |
Depreciation and amortization | ||||
Depreciation and amortization | 17.5 | 7 | 5.9 | |
Operating Segments | Government Services | ||||
Operating profit | ||||
Operating profit | 0 | (0.3) | (0.2) | |
Corporate | ||||
Operating profit | ||||
Operating profit | (226.6) | (284.5) | (374.6) | |
Depreciation and amortization | ||||
Depreciation and amortization | 13.1 | 11.4 | 12.7 | |
Segment Reconciling Items | ||||
Operating profit | ||||
Income from unconsolidated affiliates | (3.9) | (2.4) | (2.1) | |
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | $ (0.3) | $ (0.9) | $ (1.2) |
SEGMENT AND GEOGRAPHIC INFORM_4
SEGMENT AND GEOGRAPHIC INFORMATION - Schedule of Geographic Information Based on the Country in Which the Sale Originated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenues | |||
Revenues | $ 8,096.4 | $ 7,806.6 | $ 6,228.6 |
United States | |||
Revenues | |||
Revenues | 7,565.6 | 7,335.3 | 5,847.8 |
All other countries | |||
Revenues | |||
Revenues | $ 530.8 | $ 471.3 | $ 380.8 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Dec. 13, 2023 | Oct. 31, 2023 | Dec. 09, 2022 | Dec. 18, 2019 |
Subsequent Event [Line Items] | ||||
Authorized repurchase amount of common stock | $ 150,000,000 | |||
Expansion of share repurchase program | $ 150,000,000 | |||
Remaining amount of authorized repurchases of common stock | $ 60,300,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Expansion of share repurchase program | $ 150,000,000 | |||
Remaining amount of authorized repurchases of common stock | $ 210,300,000 |
SCHEDULE II - VALULATION AND _2
SCHEDULE II - VALULATION AND QUALIFYING ACCOUNTS (Detail) - Accounts receivable allowances - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance Beginning of Year | $ 22.6 | $ 32.7 | $ 35.5 |
Additions from Acquisitions | 0 | 1.4 | 1.3 |
Charges to Costs and Expenses | 76 | 60.6 | 44.3 |
Write-offs/Allowance Taken | (73.6) | (72.1) | (48.4) |
Balance End of Year | $ 25 | $ 22.6 | $ 32.7 |