Cover
Cover - shares | 9 Months Ended | |
Jul. 31, 2023 | Sep. 06, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2023 | |
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, $0.01 par value | |
Trading Symbol | ABM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 65,532,154 | |
Entity Central Index Key | 0000771497 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 97.7 | $ 73 |
Trade accounts receivable, net of allowances of $23.0 and $22.6 at July 31, 2023 and October 31, 2022, respectively | 1,331.8 | 1,278.7 |
Costs incurred in excess of amounts billed | 147.2 | 75.8 |
Prepaid expenses | 87.2 | 82.1 |
Other current assets | 65.4 | 51.6 |
Total current assets | 1,729.2 | 1,561.2 |
Other investments | 27.9 | 14.5 |
Property, plant and equipment, net of accumulated depreciation of $323.6 and $296.9 at July 31, 2023 and October 31, 2022, respectively | 126.1 | 125.4 |
Right-of-use assets | 107.2 | 115.2 |
Other intangible assets, net of accumulated amortization of $519.1 and $459.8 at July 31, 2023 and October 31, 2022, respectively | 321.5 | 378.5 |
Goodwill | 2,495.6 | 2,485.6 |
Other noncurrent assets | 162.3 | 188.5 |
Total assets | 4,970 | 4,868.9 |
Current liabilities | ||
Current portion of debt, net | 31.5 | 181.5 |
Trade accounts payable | 304.4 | 315.5 |
Accrued compensation | 212.7 | 246.6 |
Accrued taxes — other than income | 49.6 | 124.7 |
Insurance claims | 177.7 | 171.4 |
Income taxes payable | 7.3 | 6.6 |
Current portion of lease liabilities | 31.7 | 30.3 |
Other accrued liabilities | 361.6 | 276.5 |
Total current liabilities | 1,176.5 | 1,353.2 |
Long-term debt, net | 1,292.7 | 1,086.3 |
Long-term lease liabilities | 93.7 | 104.5 |
Deferred income tax liability, net | 87 | 89.7 |
Noncurrent insurance claims | 400.4 | 387.7 |
Other noncurrent liabilities | 55.1 | 126 |
Noncurrent income taxes payable | 4.3 | 4.2 |
Total liabilities | 3,109.8 | 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; 65,519,986 and 65,587,894 shares issued and outstanding at July 31, 2023 and October 31, 2022, respectively | 0.7 | 0.7 |
Additional paid-in capital | 660.7 | 675.5 |
Accumulated other comprehensive loss, net of taxes | (2.2) | (16.2) |
Retained earnings | 1,201 | 1,057.2 |
Total stockholders’ equity | 1,860.1 | 1,717.2 |
Total liabilities and stockholders’ equity | $ 4,970 | $ 4,868.9 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance | $ 23 | $ 22.6 |
Property, plant and equipment, accumulated depreciation | 323.6 | 296.9 |
Other intangible assets, accumulated amortization | $ 519.1 | $ 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) | 65,519,986 | 65,587,894 |
Common stock, shares outstanding (in shares) | 65,519,986 | 65,587,894 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 2,028.2 | $ 1,961.4 | $ 6,003.5 | $ 5,795.5 |
Operating expenses | 1,765.8 | 1,696.4 | 5,230.7 | 5,004.4 |
Selling, general and administrative expenses | 104.3 | 158.6 | 411.5 | 468.5 |
Amortization of intangible assets | 19.2 | 17.7 | 58.2 | 52.9 |
Operating profit | 138.9 | 88.7 | 303.1 | 269.7 |
Income from unconsolidated affiliates | 1.2 | 0.8 | 3 | 1.8 |
Interest expense | (20.9) | (11.1) | (61.8) | (25.2) |
Income before income taxes | 119.3 | 78.3 | 244.2 | 246.3 |
Income tax provision | (21.2) | (21.5) | (55.7) | (64.8) |
Net income | 98.1 | 56.8 | 188.5 | 181.6 |
Other comprehensive income | ||||
Interest rate swaps | 12.8 | (5.7) | (2.7) | 6.2 |
Foreign currency translation and other | 3.1 | (3.7) | 15.9 | (15.1) |
Income tax (provision) benefit | (3.6) | 1.5 | 0.7 | (1.7) |
Comprehensive income | $ 110.4 | $ 48.9 | $ 202.4 | $ 171.1 |
Net income per common share | ||||
Basic (in USD per share) | $ 1.48 | $ 0.85 | $ 2.84 | $ 2.70 |
Diluted (in USD per share) | $ 1.47 | $ 0.85 | $ 2.83 | $ 2.68 |
Weighted-average common and common equivalent shares outstanding | ||||
Basic (in shares) | 66.3 | 66.8 | 66.3 | 67.3 |
Diluted (in shares) | 66.6 | 67.2 | 66.7 | 67.7 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss, Net of Taxes | Retained Earnings |
Balance, beginning of period (in shares) at Oct. 31, 2021 | 67.3 | ||||
Balance, beginning of period at Oct. 31, 2021 | $ 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) | 0.6 | ||||
Stock issued (taxes withheld) under employee stock purchase and share-based compensation plans, net | $ 0 | (9.4) | |||
Repurchase of common stock (in shares) | (1.7) | (1.7) | |||
Share-based compensation expense | 24.4 | ||||
Repurchase of common stock | $ (74.5) | $ 0 | (74.5) | ||
Other comprehensive income (loss) | (10.7) | ||||
Net income | 181.6 | 181.6 | |||
Dividends | |||||
Common stock ($0.220 and $0.195 per share) | (39) | ||||
Stock issued under share-based compensation plans | (1.3) | ||||
Balance, end of period (in shares) at Jul. 31, 2022 | 66.1 | ||||
Balance, end of period at Jul. 31, 2022 | $ 1,680.3 | $ 0.7 | 691.4 | (33.3) | 1,021.4 |
Balance, beginning of period (in shares) at Apr. 30, 2022 | 66.8 | ||||
Balance, beginning of period at Apr. 30, 2022 | $ 0.7 | 716.4 | (25.2) | 977.7 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued under employee stock purchase and share-based compensation plans (in shares) | 0.1 | ||||
Stock issued (taxes withheld) under employee stock purchase and share-based compensation plans, net | $ 0 | (1.3) | |||
Repurchase of common stock (in shares) | (0.7) | (0.7) | |||
Share-based compensation expense | 7.5 | ||||
Repurchase of common stock | $ (31.2) | $ 0 | (31.2) | ||
Other comprehensive income (loss) | (8.1) | ||||
Net income | 56.8 | 56.8 | |||
Dividends | |||||
Common stock ($0.220 and $0.195 per share) | (12.9) | ||||
Stock issued under share-based compensation plans | (0.2) | ||||
Balance, end of period (in shares) at Jul. 31, 2022 | 66.1 | ||||
Balance, end of period at Jul. 31, 2022 | 1,680.3 | $ 0.7 | 691.4 | (33.3) | 1,021.4 |
Balance, beginning of period (in shares) at Oct. 31, 2022 | 65.6 | ||||
Balance, beginning of period 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) | 0.6 | ||||
Stock issued (taxes withheld) under employee stock purchase and share-based compensation plans, net | $ 0 | (10) | |||
Repurchase of common stock (in shares) | (0.6) | (0.6) | |||
Share-based compensation expense | 22.2 | ||||
Repurchase of common stock | $ (27.1) | $ 0 | (27.1) | ||
Other comprehensive income (loss) | 14.1 | ||||
Net income | 188.5 | 188.5 | |||
Dividends | |||||
Common stock ($0.220 and $0.195 per share) | (43.5) | ||||
Stock issued under share-based compensation plans | (1.3) | ||||
Balance, end of period (in shares) at Jul. 31, 2023 | 65.5 | ||||
Balance, end of period at Jul. 31, 2023 | $ 1,860.1 | $ 0.7 | 660.7 | (2.2) | 1,201 |
Balance, beginning of period (in shares) at Apr. 30, 2023 | 66.1 | ||||
Balance, beginning of period at Apr. 30, 2023 | $ 0.7 | 679.2 | (14.6) | 1,117.5 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock issued under employee stock purchase and share-based compensation plans (in shares) | 0 | ||||
Stock issued (taxes withheld) under employee stock purchase and share-based compensation plans, net | $ 0 | 0.9 | |||
Repurchase of common stock (in shares) | (0.6) | (0.6) | |||
Share-based compensation expense | 7.6 | ||||
Repurchase of common stock | $ (27.1) | $ 0 | (27.1) | ||
Other comprehensive income (loss) | 12.4 | ||||
Net income | 98.1 | 98.1 | |||
Dividends | |||||
Common stock ($0.220 and $0.195 per share) | (14.5) | ||||
Stock issued under share-based compensation plans | (0.2) | ||||
Balance, end of period (in shares) at Jul. 31, 2023 | 65.5 | ||||
Balance, end of period at Jul. 31, 2023 | $ 1,860.1 | $ 0.7 | $ 660.7 | $ (2.2) | $ 1,201 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, dividends (in USD per share) | $ 0.220 | $ 0.195 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 188.5 | $ 181.6 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 91.3 | 82.4 |
Deferred income taxes | (2) | 39.7 |
Share-based compensation expense | 22.2 | 24.4 |
Provision for/(Recovery of) bad debt | 0.6 | (2) |
Amortization of accumulated other comprehensive gain on interest rate swaps | 0 | (4.3) |
Discount accretion on insurance claims | 0.3 | 0 |
Loss/(Gain) on sale of assets | 0.1 | (0.8) |
Change in fair value of contingent consideration | (45.6) | 0 |
Income from unconsolidated affiliates | (3) | (1.8) |
Distributions from unconsolidated affiliates | 1.9 | 1.8 |
Changes in operating assets and liabilities | ||
Trade accounts receivable and costs incurred in excess of amounts billed | (125.1) | (129.4) |
Prepaid expenses and other current assets | (22.3) | (8) |
Right-of-use assets | 8 | 10 |
Other noncurrent assets | 25 | (6.6) |
Trade accounts payable and other accrued liabilities | (45.9) | (178) |
Long-term lease liabilities | (10.8) | (10.1) |
Insurance claims | 18.7 | (18.8) |
Income taxes payable, net | 4.4 | (10.3) |
Other noncurrent liabilities | (2.2) | (66.5) |
Total adjustments | (84.4) | (278.3) |
Net cash provided by (used in) operating activities | 104.1 | (96.7) |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (34.6) | (37.7) |
Proceeds from sale of assets | 2 | 4.1 |
Purchase of businesses, net of cash acquired | 0 | (56.7) |
Investments in equity securities | (12.4) | (3) |
Net cash used in investing activities | (45) | (93.3) |
Cash flows from financing activities | ||
Taxes withheld from issuance of share-based compensation awards, net | (11.3) | (10.7) |
Repurchases of common stock | (27.1) | (74.5) |
Dividends paid | (43.5) | (39) |
Borrowings from debt | 794 | 990.1 |
Repayment of borrowings from debt | (738.4) | (684.5) |
Changes in book cash overdrafts | (10.5) | 5.4 |
Financing of energy savings performance contracts | 0.5 | 8.7 |
Repayment of finance lease obligations | (2.2) | (1.2) |
Net cash (used in) provided by financing activities | (38.4) | 194.2 |
Effect of exchange rate changes on cash and cash equivalents | 3.9 | (3.2) |
Net increase in cash and cash equivalents | 24.7 | 1 |
Cash and cash equivalents at beginning of year | 73 | 62.8 |
Cash and cash equivalents at end of period | $ 97.7 | $ 63.9 |
THE COMPANY AND NATURE OF OPERA
THE COMPANY AND NATURE OF OPERATIONS | 9 Months Ended |
Jul. 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: |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with (i) United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and (ii) the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of our management, our unaudited consolidated financial statements and accompanying notes (the “Financial Statements”) include all normal recurring adjustments that are necessary for the fair statement of the interim periods presented. Interim results of operations are not necessarily indicative of results for the full year. The Financial Statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) in our Annual Report on Form 10-K for the year ended October 31, 2022. Unless otherwise indicated, all references to years are to our fiscal years, which end on October 31. Rounding 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. Employee Retention Tax Credit In 2020, the U.S. government enacted the Coronavirus Aid, Relief and Security Act (the “CARES Act”) to provide certain relief as a result of the COVID-19 pandemic. The CARES Act provides tax relief, along with other stimulus measures, including a provision for an Employee Retention Credit (“ERC”). ERC is a refundable tax credit for employers who kept employees on their payroll during the COVID-19 pandemic. During the three and nine months ended July 31, 2023, we received and recorded an employee retention credit totaling $22.4 million, within the “Selling, general and administrative expenses” on the unaudited Consolidated Statements of Comprehensive Income. Management Reimbursement Revenue by Segment We operate certain parking facilities under management reimbursement arrangements. Under these arrangements, we manage the parking facilities for management fees and pass through the revenues and expenses associated with the facilities to the owners. These revenues and expenses are reported in equal amounts as costs reimbursed from our managed locations. Management reimbursement revenue for the three and nine months ended July 31, 2023, was $77.9 million and $223.8 million, respectively. Management reimbursement revenue for the three and nine months ended July 31, 2022, was $72.8 million and $204.1 million, respectively. Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (“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. |
ACQUISITIONS AND DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 9 Months Ended |
Jul. 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. The estimate of the fair value of the contingent consideration on the date of acquisition, was $59.0 million. At July 31, 2023, the estimate of the fair value of the contingent consideration was $13.4 million. The change in fair value of $45.6 million is recognized within the “Selling, general and administrative expenses” of the unaudited Consolidated Statements of Comprehensive Income. The assets acquired and liabilities assumed were recognized at their acquisition date fair values. The acquisition accounting is subject to change as the Company obtains additional information during the measurement period about the facts and circumstances that existed as of the acquisition date. The final acquisition accounting may include changes to intangible assets, and deferred taxes within the measurement period not to exceed one year from the acquisition date. Goodwill is not deductible for income tax purposes. As of July 31, 2023, we recorded preliminary goodwill and intangibles of $207.4 million and $16.7 million, respectively. The total assets acquired, excluding goodwill and intangibles, and liabilities assumed amounted to $49.3 million and $44.5 million, respectively. The unaudited Consolidated Statements of Comprehensive Income for the three and nine months ended July 31, 2023, include revenues attributable to RavenVolt of $18.2 million and $66.3 million, respectively, and operating loss of $2.3 million and $3.1 million, respectively. 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 the Republic of Ireland and Northern Ireland, for a purchase price of approximately $54.8 million. As of April 7, 2023, we have completed the acquisition accounting, and recorded goodwill and intangibles of $42.9 million and $10.4 million, respectively. Goodwill is not deductible for income tax purposes. The total assets acquired, excluding goodwill and intangibles, and liabilities assumed amounted to $20.4 million and $18.9 million, respectively. There were no material changes made to ABM’s preliminary acquisition accounting. Disposition of Assets Selling, general and administrative expenses |
REVENUES
REVENUES | 9 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES Disaggregation of Revenues We generate revenues under several types of contracts, which are further explained below. 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 12, “Segment Information.” Three Months Ended July 31, 2023 Nine Months Ended July 31, 2023 (in millions) B&I M&D Education Aviation Technical Total B&I M&D Education Aviation Technical Total Major Service Line Janitorial (1) $ 687.5 $ 334.8 $ 218.6 $ 36.9 $ — $ 1,277.8 $ 2,047.8 $ 988.6 $ 594.5 $ 109.0 $ — $ 3,740.0 Parking (2) 106.1 9.9 0.2 80.6 — 196.9 303.3 31.3 0.7 247.1 — 582.3 Facility Services (3) 227.7 37.2 0.3 7.4 — 272.6 705.3 115.7 55.5 24.2 — 900.6 Building & Energy Solutions (4) — — — — 167.9 167.9 — — — — 483.4 483.4 Airline Services (5) — — — 113.0 — 113.0 — — — 297.2 — 297.2 Total $ 1,021.4 $ 381.9 $ 219.1 $ 238.0 $ 167.9 $ 2,028.2 $ 3,056.4 $ 1,135.5 $ 650.7 $ 677.5 $ 483.4 $ 6,003.5 Three Months Ended July 31, 2022 Nine Months Ended July 31, 2022 (in millions) B&I M&D Education Aviation Technical Total B&I M&D Education Aviation Technical Total Major Service Line Janitorial (1) $ 696.2 $ 311.0 $ 178.4 $ 27.5 $ — $ 1,213.1 $ 2,050.7 $ 922.3 $ 534.7 $ 83.8 $ — $ 3,591.5 Parking (2) 91.1 8.4 0.1 82.4 — 182.0 259.5 27.9 0.6 237.2 — 525.2 Facility Services (3) 246.6 38.7 29.0 7.0 — 321.3 756.7 123.9 82.3 20.3 — 983.2 Building & Energy Solutions (4) — — — — 158.4 158.4 — — — — 447.2 447.2 Airline Services (5) — — — 86.6 — 86.6 — — — 248.4 — 248.4 Total $ 1,033.8 $ 358.1 $ 207.5 $ 203.5 $ 158.4 $ 1,961.4 $ 3,067.0 $ 1,074.1 $ 617.6 $ 589.7 $ 447.2 $ 5,795.5 (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, 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. Contract Types We have arrangements under various contract types, as described in Note 2, “Basis of Presentation and Significant Accounting Policies,” in our Annual Report on Form 10-K for the year ended October 31, 2022. 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 as 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. The majority of our contracts include performance obligations that are primarily satisfied over time as we provide the related services. These contract types include: monthly fixed-price; square-foot; cost-plus; work orders; transaction-price; hourly; management reimbursement; leased location; allowance; energy savings contracts; and fixed-price repair and refurbishment contracts, as well as our franchise and royalty fee arrangements. We recognize revenue as the services are performed using a measure of progress that is determined by the contract type. Generally, most of our contracts are cancelable by either party without a substantive penalty, and the majority have a notification period of 30 to 60 days. 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. Remaining Performance Obligations At July 31, 2023 , performance obligations that were unsatisfied for which we expect to recognize revenue totaled $283.4 million. We expect to recognize revenue on approximately 75% 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) contr acts 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. For these contract types, 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 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. 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. Commissions expense is recognized on a straight-line basis over a weighted average expected customer relationship period. 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. The following tables present the balances in our contract assets and contract liabilities: (in millions) July 31, 2023 October 31, 2022 Contract assets Billed trade receivables (1) $ 1,164.5 $ 1,138.8 Unbilled trade receivables (1) 190.3 162.5 Costs incurred in excess of amounts billed (2) 147.2 75.8 Capitalized commissions (3) 30.0 30.9 (1) Included in trade accounts receivable, net, on the unaudited 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 unaudited Consolidated Balance Sheets. During the nine months ended July 31, 2023, we capitalized $10.3 million of new costs and amortized $11.2 million of previously capitalized costs. There was no impairment loss recorded on the costs capitalized. (in millions) Nine Months Ended Contract liabilities (1) Balance at beginning of period $ 79.6 Additional contract liabilities 265.7 Recognition of deferred revenue (207.6) Balance at end of period $ 137.7 |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 9 Months Ended |
Jul. 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 Three Months Ended July 31, Nine Months Ended July 31, (in millions, except per share amounts) 2023 2022 2023 2022 Net income $ 98.1 $ 56.8 $ 188.5 $ 181.6 Weighted-average common and common equivalent shares outstanding — Basic 66.3 66.8 66.3 67.3 Effect of dilutive securities Restricted stock units 0.2 0.3 0.2 0.2 Performance shares 0.1 0.1 0.1 0.1 Weighted-average common and common equivalent shares outstanding — Diluted 66.6 67.2 66.7 67.7 Net income per common share Basic $ 1.48 $ 0.85 $ 2.84 $ 2.70 Diluted $ 1.47 $ 0.85 $ 2.83 $ 2.68 Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2023 2022 2023 2022 Anti-dilutive 0.3 — 0.2 — |
FAIR VALE OF FINANCIAL INSTRUME
FAIR VALE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALE 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 (in millions) Fair Value Hierarchy July 31, 2023 October 31, 2022 Cash and cash equivalents (1) 1 $ 97.7 $ 73.0 Insurance deposits (2) 1 2.6 0.9 Assets held in funded deferred compensation plan (3) 1 4.3 4.1 Debt facilities (4) 2 1,326.9 1,271.3 Interest rate swap assets (5) 2 34.2 36.9 Preferred equity investment (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 unaudited Consolidated Balance Sheets. See Note 7, “Insurance,” for further information. (3) Represents investments held in a Rabbi trust associated with one of our deferred compensation plans, which we include in “Other noncurrent assets” on the accompanying unaudited Consolidated Balance Sheets. The fair value of the assets held in the funded deferred compensation plan is based on quoted market prices. (4) Represents gross outstanding borrowings under our Amended Credit Facility. Due to variable interest rates, the carrying value of outstanding borrowings under these facilities approximates the fair value. See Note 8, “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. Our interest rate swap assets and liabilities are included in “Other noncurrent assets” and “Other noncurrent liabilities,” respectively, on the accompanying unaudited Consolidated Balance Sheets. See Note 8, “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 nine months ended July 31, 2023, which we include in “Other investments” on the accompanying unaudited Consolidated Balance Sheet. Our investment does not have a readily determinable fair value; therefore, we account for the investment using the measurement alternative under Topic 321 and measure the investment at initial cost less impairment, if any. (7) Our contingent consideration payable related to the RavenVolt Acquisition 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. 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 the “Selling, general and administrative expenses” of the unaudited Consolidated Statements of Comprehensive Income. 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, then we would evaluate these non-financial assets for impairment. If an impairment were to occur, then the asset would be recorded at the estimated fair value, using primarily unobservable Level 3 inputs. |
INSURANCE
INSURANCE | 9 Months Ended |
Jul. 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. 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. Actuarial Review and Interim Update Performed During 2023 We review our self-insurance liabilities on a regular 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 third quarter of 2023, we performed a comprehensive actuarial review of the majority of our casualty insurance programs to evaluate changes made to claims reserves and claims payment activity for the period of November 1, 2022, through April 30, 2023 (the “Actuarial Review”). The Actuarial Review was comprehensive in nature and was based on loss development patterns, trend assumptions, and underlying expected loss costs during the period analyzed. Based on the results of the Actuarial Review, we decreased our total reserves related to prior years for known claims as well as our estimate of the loss amounts associated with incurred but not reported claims (“IBNR claims”) by $5.3 million during the nine months ended July 31, 2023. During the nine months ended July 31, 2022, we decreased our total reserves related to prior years by $36.1 million. We will continue to assess ongoing developments, which may result in further adjustments to reserves. Insurance-Related Balances and Activity (in millions) July 31, 2023 October 31, 2022 Insurance claim reserves, excluding medical and dental $ 571.2 $ 551.0 Medical and dental claim reserves 7.0 8.1 Insurance recoverables 69.6 71.0 At July 31, 2023, and October 31, 2022, insurance recoverables are included in both “Other current assets” and “Other noncurrent assets” on the accompanying unaudited Consolidated Balance Sheets. Instruments Used to Collateralize Our Insurance Obligations (in millions) July 31, 2023 October 31, 2022 Standby letters of credit $ 53.8 $ 153.7 Surety bonds and surety-backed letters of credit 174.0 73.2 Restricted insurance deposits 2.6 0.9 Total $ 230.4 $ 227.8 |
DEBT
DEBT | 9 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Components of Debt (in millions) July 31, 2023 October 31, 2022 Current portion of 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 $ 544.4 $ 568.8 Unamortized deferred financing costs (1.7) (2.4) Total noncurrent portion of term loan 542.7 566.3 Revolving line of credit (1)(2) 750.0 520.0 Long-term debt $ 1,292.7 $ 1,086.3 (1) Standby letters of credit amounted to $58.4 million at July 31, 2023. (2) At July 31, 2023, we had borrowing capacity of $485.0 million. At July 31, 2023, and October 31, 2022, the weighted average interest rate on all outstanding borrowings, not including letters of credit and swaps, was 7.02% 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 (the “Credit Facility”), consisting of a $900.0 million revolving line of credit (the “Revolver”) and an $800.0 million amortizing term loan, both of which matured on September 1, 2022. In accordance with terms of the Credit Facility, the revolver was reduced to $800.0 million on September 1, 2018. On June 28, 2021, the Company amended and restated the Credit Facility (the “Amended Credit Facility”), 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. Our borrowing capacity is subject to, and limited by, compliance with the covenants described above. At July 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 execution of the Amended Credit Facility and carried over $6.2 million of unamortized deferred financing from initial execution 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 unaudited Consolidated Balance Sheets, primarily as a result of the requirement to repurchase receivables sold. Long-Term Debt Maturities During the three and nine months ended July 31, 2023, we made principal payments under the term loan of $8.1 million and $24.4 million, respectively. As of July 31, 2023, the following principal payments are required under the Amended Credit Facility: (in millions) 2023 2024 2025 2026 2027 Debt maturities $ 8.1 $ 32.5 $ 32.5 $ 1,253.8 $ — Interest Rate Swaps We utilize interest rate swap agreements to fix the variable interest rates on portions of our debt. The purpose of using these derivatives is to reduce our exposure to the interest rate risk associated with variable borrowings. Under these agreements, we typically pay a fixed interest rate in exchange for a SOFR-based variable interest rate on a given notional amount. All of our interest rate swaps are designated and accounted for as cash flow hedges. Changes in the fair value of these derivatives are reported as a component of other comprehensive income and are reclassified into earnings in the period or periods in which the hedged transaction affects earnings. For information regarding the valuation of our interest rate swaps, see Note 6, “Fair Value of Financial Instruments.” 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 $226.9 million (1) 2.83% July 7, 2022 June 28, 2026 $73.1 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 July 31, 2023, and October 31, 2022, amounts recorded in accumulated other comprehensive loss (“AOCL”) for interest rate swaps were a gain o f $24.3 million, net of taxes of $9.8 million, and a gain of $26.8 million, |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
COMMON STOCK | COMMON STOCK Effective December 9, 2022, our Board of Directors expanded our existing share repurchase program by an additional $150.0 million. We repurchased shares under the share repurchase program during the three and nine months ended July 31, 2023, as summarized below. At July 31, 2023, authorization for $170.3 million of repurchases remained under our share repurchase program. Repurchase Activity (in millions, except per share amounts) Three Months Ended July 31, 2023 Nine Months Ended July 31, 2023 Total number of shares purchased 0.6 0.6 Average price paid per share $ 42.10 $ 42.10 Total cash paid for share repurchases $ 27.1 $ 27.1 (in millions, except per share amounts) Three Months Ended July 31, 2022 Nine Months Ended July 31, 2022 Total number of shares purchased 0.7 1.7 Average price paid per share $ 41.92 $ 42.95 Total cash paid for share repurchases $ 31.2 $ 74.5 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 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 July 31, 2023, these letters of credit and surety bonds, and surety-backed letters of credit, totaled $58.4 million and $777.9 million, respectively. Guarantees In some instances, we offer clients guaranteed energy savings under certain energy savings contracts. At July 31, 2023, total guarantees were $230.3 million and extend through 2043. We include the estimated costs of guarantees 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. Historically, we have not incurred any material losses in connection with these guarantees. Sales Taxes We collect sales tax from clients and remit those collections to the applicable states. In some cases when clients fail to pay their invoices, including the amount of any sales tax that we paid on their behalf, we may be entitled to seek a refund of that amount of sales tax from the applicable state. Sales tax laws and regulations enacted by the various states are subject to interpretation, and our compliance with such laws is routinely subject to audit and review by such states. Audit risk is concentrated in several states that are conducting ongoing audits. The outcomes of ongoing and any future audits and changes in the states’ interpretation of the sales tax laws and regulations could materially adversely impact our results of operations . 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 July 31, 2023, the total amount accrued for probable litigation losses where a reasonable estimate of the loss could be made was $29.5 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 $6 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. In some cases, although a loss is probable or reasonably possible, we cannot reasonably estimate the maximum potential losses for probable matters or the range of losses for reasonably possible matters. Therefore, our accrual for probable losses and our estimated range of loss for reasonably possible losses do not represent our maximum possible exposure. In determining whether to include any particular lawsuit or other proceeding in our disclosure, we consider both quantitative and qualitative factors. These factors include, but are not limited to: the amount of damages and the nature of any other relief sought in the proceeding; if such damages and other relief are specified, our view of the merits of the claims; whether the action is or purports to be a class action, and our view of the likelihood that a class will be certified by the court; the jurisdiction in which the proceeding is pending; and the potential impact of the proceeding on our reputation. We are currently not a party to any material legal proceedings, and we are not aware of filings of any pending or contemplated litigation, claims, or assessments. There can be no assurance that future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our financial position, results of operations, or cash flows. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our quarterly tax provision is calculated using an estimated annual effective tax rate that is adjusted for discrete items occurring during the period to arrive at our effective tax rate. During the three and nine months ended July 31, 2023, we had effective tax rates of 17.7% and 22.8%, respectively, resulting in provisions for taxes of $21.2 million and $55.7 million, respectively. During the three and nine months ended July 31, 2022, we had effective tax rates of 27.5% and 26.3%, respectively, resulting in provisions for taxes of $21.5 million and $64.8 million, respectively. The difference between the estimated annual effective tax rate and statutory rate is primarily related to state income taxes, non-deductible compensation, and tax credits. Our effective tax rate for the three months ended July 31, 2023 was impacted by discrete items related to ERC refunds received from IRS, and the non-taxable change in the fair value of the contingent consideration related to the RavenVolt Acquisition. Our effective tax rate for the three months ended July 31, 2022, was not impacted by any significant discrete items. Our effective tax rate for the nine months ended July 31, 2023, benefited from discrete items, primarily by $1.7 million for share-based compensation, ERC refunds received from IRS, and the non-taxable change in the fair value of the contingent consideration related to the RavenVolt Acquisition. Our effective tax rate for the nine months ended July 31, 2022, benefited from discrete items, primarily by $3.3 million change in tax reserves and $1.3 million for share-based compensation. Under various payroll tax provisions included in the CARES Act, through December 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. We plan to reinvest our foreign earnings to fund future non-U.S. growth and expansion, and we do not anticipate remitting such earnings to the United States. While U.S. federal tax expense has been recognized as a |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT 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 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. Financial Information by Reportable Segment Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2023 2022 2023 2022 Revenues Business & Industry $ 1,021.4 $ 1,033.8 $ 3,056.4 $ 3,067.0 Manufacturing & Distribution 381.9 358.1 1,135.5 1,074.1 Education 219.1 207.5 650.7 617.6 Aviation 238.0 203.5 677.5 589.7 Technical Solutions 167.9 158.4 483.4 447.2 $ 2,028.2 $ 1,961.4 $ 6,003.5 $ 5,795.5 Operating profit Business & Industry $ 78.9 $ 82.4 $ 231.1 $ 242.4 Manufacturing & Distribution 38.1 38.0 119.7 120.6 Education 15.9 14.5 39.5 38.8 Aviation 11.7 9.5 43.6 28.0 Technical Solutions (1) 11.4 15.4 28.8 42.8 Government Services — 0.1 — (0.3) Corporate (2) (15.9) (70.3) (156.7) (200.6) Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (1.2) (0.8) (3.0) (1.8) Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions — (0.1) (0.1) (0.3) 138.9 88.7 303.1 269.7 Income from unconsolidated affiliates 1.2 0.8 3.0 1.8 Interest expense (20.9) (11.1) (61.8) (25.2) Income before income taxes $ 119.3 $ 78.3 $ 244.2 $ 246.3 (1) Reflects a $7.6 million gain on the sale of assets during the nine months ended July 31, 2022. (2) Reflects adjustments to the fair value of the contingent consideration payable related to the RavenVolt Acquisition, and an employee retention credit totaling $22.4 million during the three and nine months ended July 31, 2023. The accounting policies for our segments are the same as those disclosed within our significant accounting policies in Note 2, “Basis of Presentation and Significant Accounting Policies.” Our management evaluates the performance of each reportable segment based on its respective operating profit results, which include the allocation of certain centrally incurred costs. Corporate expenses not allocated to segments include certain CEO and other finance and human resource departmental expenses, certain information technology costs, share-based compensation, certain legal costs and settlements, certain actuarial adjustments to self-insurance reserves, acquisition and integration costs, and changes in fair values of contingent consideration. Management does not review asset information by segment, therefore we do not present assets in this note. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 98.1 | $ 56.8 | $ 188.5 | $ 181.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Jul. 31, 2023 shares | Jul. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended July 31, 2023, certain of our “officers,” as defined in Rule 16a-1(f) of the Exchange Act, and directors adopted, modified, or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K, as follows: Trading Arrangements Name and Title Action Date of Action Rule 10b5-1 Trading Arrangement 1 Non-Rule 10b5-1 Trading Arrangement Aggregate Number of Securities to be Sold Aggregate Number of Securities to be Purchased Duration Rene Jacobsen, Executive Vice President and Chief Operating Officer Adoption July 14, 2023 X - 18,245 shares of common stock - From October 13, 2023, until the earlier of (i) the date when all shares under plan are sold and (ii) July 24, 2024 Andrea Newborn, Executive Vice President, General Counsel and Corporate Secretary Adoption July 11, 2023 X - 9,766 shares of common stock - From October 10, 2023, until the earlier of (i) the date when all shares under plan are sold and (ii) April 9, 2024 (1) | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Rene Jacobsen [Member] | ||
Trading Arrangements, by Individual | ||
Name | Rene Jacobsen | |
Title | Executive Vice President and Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | July 14, 2023 | |
Arrangement Duration | 285 days | |
Aggregate Available | 18,245 | 18,245 |
Andrea Newborn [Member] | ||
Trading Arrangements, by Individual | ||
Name | Andrea Newborn | |
Title | Executive Vice President, General Counsel and Corporate Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | July 11, 2023 | |
Arrangement Duration | 182 days | |
Aggregate Available | 9,766 | 9,766 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jul. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with (i) United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and (ii) the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of our management, our unaudited consolidated financial statements and accompanying notes (the “Financial Statements”) include all normal recurring adjustments that are necessary for the fair statement of the interim periods presented. Interim results of operations are not necessarily indicative of results for the full year. The Financial Statements should be read in conjunction with our audited consolidated financial statements (and notes thereto) in our Annual Report on Form 10-K for the year ended October 31, 2022. Unless otherwise indicated, all references to years are to our fiscal years, which end on October 31. |
Management Reimbursement Revenue by Segment and Remaining Performance Obligations | Management Reimbursement Revenue by SegmentWe operate certain parking facilities under management reimbursement arrangements. Under these arrangements, we manage the parking facilities for management fees and pass through the revenues and expenses associated with the facilities to the owners. These revenues and expenses are reported in equal amounts as costs reimbursed from our managed locations. Remaining Performance Obligations At July 31, 2023 , performance obligations that were unsatisfied for which we expect to recognize revenue totaled $283.4 million. We expect to recognize revenue on approximately 75% 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) contr acts 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. For these contract types, we apply the practical expedient that permits exclusion of information about the remaining performance obligations with original expected durations of one year or less. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (“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. |
Contract Types and Contract Balances | Contract Types We have arrangements under various contract types, as described in Note 2, “Basis of Presentation and Significant Accounting Policies,” in our Annual Report on Form 10-K for the year ended October 31, 2022. 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 as 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. The majority of our contracts include performance obligations that are primarily satisfied over time as we provide the related services. These contract types include: monthly fixed-price; square-foot; cost-plus; work orders; transaction-price; hourly; management reimbursement; leased location; allowance; energy savings contracts; and fixed-price repair and refurbishment contracts, as well as our franchise and royalty fee arrangements. We recognize revenue as the services are performed using a measure of progress that is determined by the contract type. Generally, most of our contracts are cancelable by either party without a substantive penalty, and the majority have a notification period of 30 to 60 days. 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. 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. Commissions expense is recognized on a straight-line basis over a weighted average expected customer relationship period. 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. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from External Customers by Major Service Lines and Segments | Three Months Ended July 31, 2023 Nine Months Ended July 31, 2023 (in millions) B&I M&D Education Aviation Technical Total B&I M&D Education Aviation Technical Total Major Service Line Janitorial (1) $ 687.5 $ 334.8 $ 218.6 $ 36.9 $ — $ 1,277.8 $ 2,047.8 $ 988.6 $ 594.5 $ 109.0 $ — $ 3,740.0 Parking (2) 106.1 9.9 0.2 80.6 — 196.9 303.3 31.3 0.7 247.1 — 582.3 Facility Services (3) 227.7 37.2 0.3 7.4 — 272.6 705.3 115.7 55.5 24.2 — 900.6 Building & Energy Solutions (4) — — — — 167.9 167.9 — — — — 483.4 483.4 Airline Services (5) — — — 113.0 — 113.0 — — — 297.2 — 297.2 Total $ 1,021.4 $ 381.9 $ 219.1 $ 238.0 $ 167.9 $ 2,028.2 $ 3,056.4 $ 1,135.5 $ 650.7 $ 677.5 $ 483.4 $ 6,003.5 Three Months Ended July 31, 2022 Nine Months Ended July 31, 2022 (in millions) B&I M&D Education Aviation Technical Total B&I M&D Education Aviation Technical Total Major Service Line Janitorial (1) $ 696.2 $ 311.0 $ 178.4 $ 27.5 $ — $ 1,213.1 $ 2,050.7 $ 922.3 $ 534.7 $ 83.8 $ — $ 3,591.5 Parking (2) 91.1 8.4 0.1 82.4 — 182.0 259.5 27.9 0.6 237.2 — 525.2 Facility Services (3) 246.6 38.7 29.0 7.0 — 321.3 756.7 123.9 82.3 20.3 — 983.2 Building & Energy Solutions (4) — — — — 158.4 158.4 — — — — 447.2 447.2 Airline Services (5) — — — 86.6 — 86.6 — — — 248.4 — 248.4 Total $ 1,033.8 $ 358.1 $ 207.5 $ 203.5 $ 158.4 $ 1,961.4 $ 3,067.0 $ 1,074.1 $ 617.6 $ 589.7 $ 447.2 $ 5,795.5 (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, 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 with Customer, Asset and Liability | The following tables present the balances in our contract assets and contract liabilities: (in millions) July 31, 2023 October 31, 2022 Contract assets Billed trade receivables (1) $ 1,164.5 $ 1,138.8 Unbilled trade receivables (1) 190.3 162.5 Costs incurred in excess of amounts billed (2) 147.2 75.8 Capitalized commissions (3) 30.0 30.9 (1) Included in trade accounts receivable, net, on the unaudited 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 unaudited Consolidated Balance Sheets. During the nine months ended July 31, 2023, we capitalized $10.3 million of new costs and amortized $11.2 million of previously capitalized costs. There was no impairment loss recorded on the costs capitalized. (in millions) Nine Months Ended Contract liabilities (1) Balance at beginning of period $ 79.6 Additional contract liabilities 265.7 Recognition of deferred revenue (207.6) Balance at end of period $ 137.7 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Common Share Calculations | Basic and Diluted Net Income Per Common Share Calculations Three Months Ended July 31, Nine Months Ended July 31, (in millions, except per share amounts) 2023 2022 2023 2022 Net income $ 98.1 $ 56.8 $ 188.5 $ 181.6 Weighted-average common and common equivalent shares outstanding — Basic 66.3 66.8 66.3 67.3 Effect of dilutive securities Restricted stock units 0.2 0.3 0.2 0.2 Performance shares 0.1 0.1 0.1 0.1 Weighted-average common and common equivalent shares outstanding — Diluted 66.6 67.2 66.7 67.7 Net income per common share Basic $ 1.48 $ 0.85 $ 2.84 $ 2.70 Diluted $ 1.47 $ 0.85 $ 2.83 $ 2.68 |
Schedule of Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans | Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2023 2022 2023 2022 Anti-dilutive 0.3 — 0.2 — |
FAIR VALE OF FINANCIAL INSTRU_2
FAIR VALE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Jul. 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 (in millions) Fair Value Hierarchy July 31, 2023 October 31, 2022 Cash and cash equivalents (1) 1 $ 97.7 $ 73.0 Insurance deposits (2) 1 2.6 0.9 Assets held in funded deferred compensation plan (3) 1 4.3 4.1 Debt facilities (4) 2 1,326.9 1,271.3 Interest rate swap assets (5) 2 34.2 36.9 Preferred equity investment (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 unaudited Consolidated Balance Sheets. See Note 7, “Insurance,” for further information. (3) Represents investments held in a Rabbi trust associated with one of our deferred compensation plans, which we include in “Other noncurrent assets” on the accompanying unaudited Consolidated Balance Sheets. The fair value of the assets held in the funded deferred compensation plan is based on quoted market prices. (4) Represents gross outstanding borrowings under our Amended Credit Facility. Due to variable interest rates, the carrying value of outstanding borrowings under these facilities approximates the fair value. See Note 8, “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. Our interest rate swap assets and liabilities are included in “Other noncurrent assets” and “Other noncurrent liabilities,” respectively, on the accompanying unaudited Consolidated Balance Sheets. See Note 8, “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 nine months ended July 31, 2023, which we include in “Other investments” on the accompanying unaudited Consolidated Balance Sheet. Our investment does not have a readily determinable fair value; therefore, we account for the investment using the measurement alternative under Topic 321 and measure the investment at initial cost less impairment, if any. |
INSURANCE (Tables)
INSURANCE (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Insurance [Abstract] | |
Schedule of Insurance Related Balances and Activity | Insurance-Related Balances and Activity (in millions) July 31, 2023 October 31, 2022 Insurance claim reserves, excluding medical and dental $ 571.2 $ 551.0 Medical and dental claim reserves 7.0 8.1 Insurance recoverables 69.6 71.0 |
Schedule of Instruments Used to Collateralize Insurance Obligations | Instruments Used to Collateralize Our Insurance Obligations (in millions) July 31, 2023 October 31, 2022 Standby letters of credit $ 53.8 $ 153.7 Surety bonds and surety-backed letters of credit 174.0 73.2 Restricted insurance deposits 2.6 0.9 Total $ 230.4 $ 227.8 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | Components of Debt (in millions) July 31, 2023 October 31, 2022 Current portion of 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 $ 544.4 $ 568.8 Unamortized deferred financing costs (1.7) (2.4) Total noncurrent portion of term loan 542.7 566.3 Revolving line of credit (1)(2) 750.0 520.0 Long-term debt $ 1,292.7 $ 1,086.3 (1) Standby letters of credit amounted to $58.4 million at July 31, 2023. (2) At July 31, 2023, we had borrowing capacity of $485.0 million. |
Schedule of Term Loan Maturities | As of July 31, 2023, the following principal payments are required under the Amended Credit Facility: (in millions) 2023 2024 2025 2026 2027 Debt maturities $ 8.1 $ 32.5 $ 32.5 $ 1,253.8 $ — |
Schedule of Interest Rate Swap Information | 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 $226.9 million (1) 2.83% July 7, 2022 June 28, 2026 $73.1 million (1) 2.79% July 18, 2022 June 28, 2026 $170.0 million 3.81% November 1, 2022 June 28, 2026 (1) |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Share Repurchase Activity | (in millions, except per share amounts) Three Months Ended July 31, 2023 Nine Months Ended July 31, 2023 Total number of shares purchased 0.6 0.6 Average price paid per share $ 42.10 $ 42.10 Total cash paid for share repurchases $ 27.1 $ 27.1 (in millions, except per share amounts) Three Months Ended July 31, 2022 Nine Months Ended July 31, 2022 Total number of shares purchased 0.7 1.7 Average price paid per share $ 41.92 $ 42.95 Total cash paid for share repurchases $ 31.2 $ 74.5 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jul. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | Financial Information by Reportable Segment Three Months Ended July 31, Nine Months Ended July 31, (in millions) 2023 2022 2023 2022 Revenues Business & Industry $ 1,021.4 $ 1,033.8 $ 3,056.4 $ 3,067.0 Manufacturing & Distribution 381.9 358.1 1,135.5 1,074.1 Education 219.1 207.5 650.7 617.6 Aviation 238.0 203.5 677.5 589.7 Technical Solutions 167.9 158.4 483.4 447.2 $ 2,028.2 $ 1,961.4 $ 6,003.5 $ 5,795.5 Operating profit Business & Industry $ 78.9 $ 82.4 $ 231.1 $ 242.4 Manufacturing & Distribution 38.1 38.0 119.7 120.6 Education 15.9 14.5 39.5 38.8 Aviation 11.7 9.5 43.6 28.0 Technical Solutions (1) 11.4 15.4 28.8 42.8 Government Services — 0.1 — (0.3) Corporate (2) (15.9) (70.3) (156.7) (200.6) Adjustment for income from unconsolidated affiliates, included in Aviation and Technical Solutions (1.2) (0.8) (3.0) (1.8) Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions — (0.1) (0.1) (0.3) 138.9 88.7 303.1 269.7 Income from unconsolidated affiliates 1.2 0.8 3.0 1.8 Interest expense (20.9) (11.1) (61.8) (25.2) Income before income taxes $ 119.3 $ 78.3 $ 244.2 $ 246.3 (1) Reflects a $7.6 million gain on the sale of assets during the nine months ended July 31, 2022. (2) Reflects adjustments to the fair value of the contingent consideration payable related to the RavenVolt Acquisition, and an employee retention credit totaling $22.4 million during the three and nine months ended July 31, 2023. |
THE COMPANY AND NATURE OF OPE_2
THE COMPANY AND NATURE OF OPERATIONS (Details) | 9 Months Ended |
Jul. 31, 2023 industryGroup segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of industry groups | industryGroup | 4 |
Number of technical solutions segments | segment | 1 |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Employee retention credit received | $ 22.4 | $ 22.4 | ||
Revenues | 2,028.2 | $ 1,961.4 | 6,003.5 | $ 5,795.5 |
Management Reimbursement Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 77.9 | $ 72.8 | $ 223.8 | $ 204.1 |
ACQUISITIONS AND DISPOSITIONS (
ACQUISITIONS AND DISPOSITIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2023 | Sep. 01, 2022 | Apr. 07, 2022 | Jul. 31, 2023 | Jul. 31, 2023 | Jul. 31, 2022 | Dec. 31, 2026 | Dec. 31, 2025 | Dec. 31, 2024 | Apr. 07, 2023 | Oct. 31, 2022 | Jan. 31, 2022 | |
Business Acquisition [Line Items] | ||||||||||||
Change in fair value of contingent consideration | $ (45,600,000) | $ 0 | ||||||||||
Goodwill | $ 2,495,600,000 | $ 2,495,600,000 | 2,495,600,000 | $ 2,485,600,000 | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | |||||||||||
Customer Contracts for Healthcare Technology Management | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Technical Solutions | ||||||||||||
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 | $ 7,600,000 | ||||||||||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration | 13,400,000 | 13,400,000 | 13,400,000 | $ 59,000,000 | ||||||||
Change in fair value of contingent consideration | 45,600,000 | |||||||||||
RavenVolt | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash purchase price | $ 170,000,000 | |||||||||||
Contingent consideration | 59,000,000 | |||||||||||
Goodwill tax deductible amount | 0 | |||||||||||
Goodwill | 207,400,000 | 207,400,000 | 207,400,000 | |||||||||
Intangibles acquired | 16,700,000 | 16,700,000 | 16,700,000 | |||||||||
Total assets acquired, excluding goodwill and intangibles | 49,300,000 | 49,300,000 | 49,300,000 | |||||||||
Liabilities assumed | $ 44,500,000 | 44,500,000 | 44,500,000 | |||||||||
Revenues associated with acquisition | 18,200,000 | 66,300,000 | ||||||||||
Operating loss associated with acquisition | $ (2,300,000) | $ (3,100,000) | ||||||||||
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 | |||||||||||
Goodwill | 42,900,000 | |||||||||||
Intangibles acquired | 10,400,000 | |||||||||||
Total assets acquired, excluding goodwill and intangibles | 20,400,000 | |||||||||||
Liabilities assumed | $ 18,900,000 | |||||||||||
Consideration paid | $ 54,800,000 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 2,028.2 | $ 1,961.4 | $ 6,003.5 | $ 5,795.5 |
B&I | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1,021.4 | 1,033.8 | 3,056.4 | 3,067 |
M&D | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 381.9 | 358.1 | 1,135.5 | 1,074.1 |
Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 219.1 | 207.5 | 650.7 | 617.6 |
Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 238 | 203.5 | 677.5 | 589.7 |
Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 167.9 | 158.4 | 483.4 | 447.2 |
Janitorial | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1,277.8 | 1,213.1 | 3,740 | 3,591.5 |
Janitorial | B&I | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 687.5 | 696.2 | 2,047.8 | 2,050.7 |
Janitorial | M&D | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 334.8 | 311 | 988.6 | 922.3 |
Janitorial | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 218.6 | 178.4 | 594.5 | 534.7 |
Janitorial | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 36.9 | 27.5 | 109 | 83.8 |
Janitorial | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Parking | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 196.9 | 182 | 582.3 | 525.2 |
Parking | B&I | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 106.1 | 91.1 | 303.3 | 259.5 |
Parking | M&D | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 9.9 | 8.4 | 31.3 | 27.9 |
Parking | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0.2 | 0.1 | 0.7 | 0.6 |
Parking | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 80.6 | 82.4 | 247.1 | 237.2 |
Parking | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Facility Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 272.6 | 321.3 | 900.6 | 983.2 |
Facility Services | B&I | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 227.7 | 246.6 | 705.3 | 756.7 |
Facility Services | M&D | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 37.2 | 38.7 | 115.7 | 123.9 |
Facility Services | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0.3 | 29 | 55.5 | 82.3 |
Facility Services | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 7.4 | 7 | 24.2 | 20.3 |
Facility Services | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Building & Energy Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 167.9 | 158.4 | 483.4 | 447.2 |
Building & Energy Solutions | B&I | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Building & Energy Solutions | M&D | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Building & Energy Solutions | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Building & Energy Solutions | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Building & Energy Solutions | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 167.9 | 158.4 | 483.4 | 447.2 |
Airline Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 113 | 86.6 | 297.2 | 248.4 |
Airline Services | B&I | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Airline Services | M&D | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Airline Services | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Airline Services | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 113 | 86.6 | 297.2 | 248.4 |
Airline Services | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligations Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-08-01 $ in Millions | Jul. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Amount of remaining performance obligation | $ 283.4 |
Percentage of remaining performance obligation | 75% |
Remaining performance obligation period | 12 months |
REVENUES - Contract with Custom
REVENUES - Contract with Customer, Asset and Liability (Details) - USD ($) | 9 Months Ended | |
Jul. 31, 2023 | Oct. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Billed trade receivables | $ 1,164,500,000 | $ 1,138,800,000 |
Unbilled trade receivables | 190,300,000 | 162,500,000 |
Costs incurred in excess of amounts billed | 147,200,000 | 75,800,000 |
Capitalized commissions | 30,000,000 | $ 30,900,000 |
Capitalized contract price | 10,300,000 | |
Amortization of previously capitalized contract costs | 11,200,000 | |
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 | 265,700,000 | |
Recognition of deferred revenue | (207,600,000) | |
Contract liabilities, balance at end of period | $ 137,700,000 |
NET INCOME PER COMMON SHARE - C
NET INCOME PER COMMON SHARE - Calculations of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income | $ 98.1 | $ 56.8 | $ 188.5 | $ 181.6 |
Weighted-average common and common equivalent shares outstanding — Basic (in shares) | 66.3 | 66.8 | 66.3 | 67.3 |
Effect of dilutive securities | ||||
Weighted-average common and common equivalent shares outstanding — Diluted (in shares) | 66.6 | 67.2 | 66.7 | 67.7 |
Net income per common share | ||||
Basic (in USD per share) | $ 1.48 | $ 0.85 | $ 2.84 | $ 2.70 |
Diluted (in USD per share) | $ 1.47 | $ 0.85 | $ 2.83 | $ 2.68 |
Restricted stock units | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0.2 | 0.3 | 0.2 | 0.2 |
Performance shares | ||||
Effect of dilutive securities | ||||
Effect of dilutive securities (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
NET INCOME PER COMMON SHARE - A
NET INCOME PER COMMON SHARE - Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive (in shares) | 0.3 | 0 | 0.2 | 0 |
FAIR VALE OF FINANCIAL INSTRU_3
FAIR VALE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Privately Held Company | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Preferred equity investment | $ 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 | 97.7 | $ 73 |
Insurance deposits | 2.6 | 0.9 |
Assets held in funded deferred compensation plan | 4.3 | 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 | 1,326.9 | 1,271.3 |
Interest rate swap assets | 34.2 | 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 investment | 15.4 | 3 |
Contingent consideration | $ 13.4 | $ 59 |
INSURANCE - Narrative (Details)
INSURANCE - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
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 | (5.3) | $ 36.1 |
Minimum | ||
Schedule of Other Liabilities [Line Items] | ||
Self insurance retention amount per-claim | 1 | |
Primary policy limit | 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 |
INSURANCE - Insurance Related B
INSURANCE - Insurance Related Balances and Activity (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance recoverables | $ 69.6 | $ 71 |
Insurance claim reserves, excluding medical and dental | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance claim reserves | 571.2 | 551 |
Medical and dental claim reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance claim reserves | $ 7 | $ 8.1 |
INSURANCE - Instruments Used to
INSURANCE - Instruments Used to Collateralize Insurance Obligations (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 |
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | $ 230.4 | $ 227.8 |
Standby letters of credit | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | 53.8 | 153.7 |
Surety bonds and surety-backed letters of credit | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | 174 | 73.2 |
Restricted insurance deposits | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | $ 2.6 | $ 0.9 |
DEBT - Components of Debt (Deta
DEBT - Components of Debt (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Oct. 31, 2022 | Mar. 01, 2022 |
Current portion of 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 | 544.4 | 568.8 | |
Unamortized deferred financing costs | (1.7) | (2.4) | |
Total noncurrent portion of term loan | 542.7 | 566.3 | |
Revolving line of credit | 750 | 520 | |
Long-term debt | 1,292.7 | $ 1,086.3 | |
Standby letters of credit | 58.4 | ||
Borrowing capacity | $ 485 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Nov. 01, 2022 | Sep. 01, 2017 USD ($) | Jul. 31, 2023 USD ($) | Jul. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Mar. 01, 2022 USD ($) | Jun. 28, 2021 USD ($) | Jun. 27, 2021 USD ($) | Sep. 01, 2018 USD ($) | Aug. 31, 2017 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||||
Deferred financing costs | $ 12,600,000 | |||||||||
Receivables facility | $ 0 | $ 0 | $ 150,000,000 | $ 150,000,000 | ||||||
Debt instrument, periodic payment, principal | 8,100,000 | 24,400,000 | ||||||||
Interest rate cash flow hedge gain to be reclassified during next 12 months, net | 8,400,000 | 8,400,000 | ||||||||
Tax to be reclassified during the next 12 months | $ 3,300,000 | 3,300,000 | ||||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Gain from cash flow hedges recorded in accumulated other comprehensive loss, net of tax | 24,300,000 | 26,800,000 | ||||||||
Tax related to amounts in accumulated other comprehensive loss | $ 9,800,000 | $ 10,100,000 | ||||||||
Line of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Deferred financing costs | 7,700,000 | |||||||||
Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Deferred financing costs | $ 4,900,000 | |||||||||
Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Weighted average interest rate | 7.02% | 7.02% | 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 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Total net leverage ratio | 5.50 | |||||||||
Secured net leverage ratio | 4.50 | |||||||||
Credit Facility | Secured Overnight Financing Rate (SOFR) | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate | 0.10% | |||||||||
Credit Facility | Standby Letters of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 350,000,000 | |||||||||
Credit Facility | Swing Line Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | 75,000,000 | |||||||||
Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 900,000,000 | 1,300,000,000 | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | |||||
Credit Facility | Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, face amount | $ 800,000,000 | 650,000,000 | $ 620,000,000 | |||||||
Deferred financing costs | $ 6,200,000 |
DEBT - Long-Term Debt Maturitie
DEBT - Long-Term Debt Maturities (Details) - Term Loan $ in Millions | Jul. 31, 2023 USD ($) |
Maturities of Long-term Debt | |
2023 | $ 8.1 |
2024 | 32.5 |
2025 | 32.5 |
2026 | 1,253.8 |
2027 | $ 0 |
DEBT - Interest Rate Swaps (Det
DEBT - 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 | $ 226,900,000 | |||||||||
Fixed Interest Rate | 2.83% | |||||||||
Interest Rate Swap, Effective 7/18/2022 | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Notional Amount | $ 73,100,000 | |||||||||
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% |
COMMON STOCK - Narrative (Detai
COMMON STOCK - Narrative (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Dec. 09, 2022 |
Stockholders' Equity Note [Abstract] | ||
Expansion of of authorized repurchase amount of common stock | $ 150 | |
Remaining amount of authorized repurchases of common stock | $ 170.3 |
COMMON STOCK - Schedule of Repu
COMMON STOCK - Schedule of Repurchase Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||||
Total number of shares purchased (in shares) | 0.6 | 0.7 | 0.6 | 1.7 |
Average price paid per share (in USD per share) | $ 42.10 | $ 41.92 | $ 42.10 | $ 42.95 |
Total cash paid for share repurchases | $ 27.1 | $ 31.2 | $ 27.1 | $ 74.5 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jul. 31, 2023 USD ($) |
Loss Contingencies [Line Items] | |
Standby letters of credit | $ 58,400,000 |
Surety bonds and surety-backed letters of credit | 777,900,000 |
Minimum | |
Loss Contingencies [Line Items] | |
Amount of reasonably possible loss | 0 |
Maximum | |
Loss Contingencies [Line Items] | |
Amount of reasonably possible loss | 6,000,000 |
Pending Litigation | |
Loss Contingencies [Line Items] | |
Loss contingency accrual | 29,500,000 |
Energy Savings Contracts | |
Loss Contingencies [Line Items] | |
Guarantee obligation | $ 230,300,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||||
Effective income tax rate | 17.70% | 27.50% | 22.80% | 26.30% | |||
Provisions for taxes | $ 21.2 | $ 21.5 | $ 55.7 | $ 64.8 | |||
Income tax benefit for share-based compensation | $ (1.7) | (1.3) | |||||
Income tax benefit for change in tax reserves | $ (3.3) | ||||||
Deferred payroll tax | $ 132 | ||||||
Payment of deferred payroll tax | $ 66 | $ 66 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | Jul. 31, 2023 | Jul. 31, 2022 | |
Revenues | ||||
Revenues | $ 2,028.2 | $ 1,961.4 | $ 6,003.5 | $ 5,795.5 |
Operating profit | ||||
Operating profit | 138.9 | 88.7 | 303.1 | 269.7 |
Income from unconsolidated affiliates | 1.2 | 0.8 | 3 | 1.8 |
Interest expense | (20.9) | (11.1) | (61.8) | (25.2) |
Income before income taxes | 119.3 | 78.3 | 244.2 | 246.3 |
Employee retention credit | 22.4 | 22.4 | ||
Business & Industry | ||||
Revenues | ||||
Revenues | 1,021.4 | 1,033.8 | 3,056.4 | 3,067 |
Manufacturing & Distribution | ||||
Revenues | ||||
Revenues | 381.9 | 358.1 | 1,135.5 | 1,074.1 |
Education | ||||
Revenues | ||||
Revenues | 219.1 | 207.5 | 650.7 | 617.6 |
Aviation | ||||
Revenues | ||||
Revenues | 238 | 203.5 | 677.5 | 589.7 |
Technical Solutions | ||||
Revenues | ||||
Revenues | 167.9 | 158.4 | 483.4 | 447.2 |
Technical Solutions | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Customer Contracts for Healthcare Technology Management | ||||
Operating profit | ||||
Gain on sale of assets | 7.6 | 7.6 | ||
Operating Segments | Business & Industry | ||||
Revenues | ||||
Revenues | 1,021.4 | 1,033.8 | 3,056.4 | 3,067 |
Operating profit | ||||
Operating profit | 78.9 | 82.4 | 231.1 | 242.4 |
Operating Segments | Manufacturing & Distribution | ||||
Revenues | ||||
Revenues | 381.9 | 358.1 | 1,135.5 | 1,074.1 |
Operating profit | ||||
Operating profit | 38.1 | 38 | 119.7 | 120.6 |
Operating Segments | Education | ||||
Revenues | ||||
Revenues | 219.1 | 207.5 | 650.7 | 617.6 |
Operating profit | ||||
Operating profit | 15.9 | 14.5 | 39.5 | 38.8 |
Operating Segments | Aviation | ||||
Revenues | ||||
Revenues | 238 | 203.5 | 677.5 | 589.7 |
Operating profit | ||||
Operating profit | 11.7 | 9.5 | 43.6 | 28 |
Operating Segments | Technical Solutions | ||||
Revenues | ||||
Revenues | 167.9 | 158.4 | 483.4 | 447.2 |
Operating profit | ||||
Operating profit | 11.4 | 15.4 | 28.8 | 42.8 |
Operating Segments | Government Services | ||||
Operating profit | ||||
Operating profit | 0 | 0.1 | 0 | (0.3) |
Corporate | ||||
Operating profit | ||||
Operating profit | (15.9) | (70.3) | (156.7) | (200.6) |
Segment Reconciling Items | ||||
Operating profit | ||||
Income from unconsolidated affiliates | (1.2) | (0.8) | (3) | (1.8) |
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | $ 0 | $ (0.1) | $ (0.1) | $ (0.3) |