Cover Page
Cover Page - shares | 6 Months Ended | |
Apr. 30, 2020 | Jun. 16, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2020 | |
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 | |
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 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ABM | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 66,666,130 | |
Entity Central Index Key | 0000771497 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Apr. 30, 2020 | Oct. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 555.9 | $ 58.5 |
Trade accounts receivable, net of allowances of $34.9 and $22.4 at April 30, 2020 and October 31, 2019, respectively | 952.2 | 1,013.2 |
Costs incurred in excess of amounts billed | 67.7 | 72.6 |
Prepaid expenses | 75 | 75.7 |
Other current assets | 64.2 | 55.5 |
Total current assets | 1,715 | 1,275.4 |
Other investments | 10.6 | 14 |
Property, plant and equipment, net of accumulated depreciation of $220.4 and $199.5 at April 30, 2020 and October 31, 2019, respectively | 140.9 | 150.3 |
Right-of-use assets | 158.8 | |
Other intangible assets, net of accumulated amortization of $320.2 and $309.0 at April 30, 2020 and October 31, 2019, respectively | 262.9 | 297.2 |
Goodwill | 1,669.4 | 1,835.4 |
Other noncurrent assets | 121.6 | 120.3 |
Total assets | 4,079.2 | 3,692.6 |
Current liabilities | ||
Current portion of long-term debt, net | 87.4 | 57.2 |
Trade accounts payable | 249.4 | 280.7 |
Accrued compensation | 152 | 189.3 |
Accrued taxes—other than income | 71.3 | 63.6 |
Insurance claims | 162.4 | 149.8 |
Income taxes payable | 24.1 | 3.5 |
Current portion of lease liabilities | 36 | |
Other accrued liabilities | 158.6 | 158.2 |
Total current liabilities | 941.2 | 902.4 |
Long-term debt, net | 1,105.7 | 744.2 |
Long-term lease liabilities | 144.8 | |
Deferred income tax liability, net | 32.4 | 47.7 |
Noncurrent insurance claims | 370.7 | 365.2 |
Other noncurrent liabilities | 77.5 | 78.8 |
Noncurrent income taxes payable | 11.7 | 12.2 |
Total liabilities | 2,684 | 2,150.6 |
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; 66,645,129 and 66,571,427 shares issued and outstanding at April 30, 2020 and October 31, 2019, respectively | 0.7 | 0.7 |
Additional paid-in capital | 707.1 | 708.9 |
Accumulated other comprehensive loss, net of taxes | (34.9) | (23.9) |
Retained earnings | 722.3 | 856.3 |
Total stockholders’ equity | 1,395.2 | 1,542 |
Total liabilities and stockholders’ equity | $ 4,079.2 | $ 3,692.6 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Apr. 30, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable, allowance | $ 34.9 | $ 22.4 |
Property, plant and equipment, accumulated depreciation | 220.4 | 199.5 |
Other intangible assets, accumulated amortization | $ 320.2 | $ 309 |
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) | 66,645,129 | 66,571,427 |
Common stock, shares outstanding (in shares) | 66,645,129 | 66,571,427 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,496 | $ 1,594.7 | $ 3,109 | $ 3,202.6 |
Operating expenses | 1,306.1 | 1,414.2 | 2,739.9 | 2,860.2 |
Selling, general and administrative expenses | 119.4 | 108.4 | 237 | 221.1 |
Restructuring and related expenses | 1.8 | 2.7 | 5 | 6.5 |
Amortization of intangible assets | 12.5 | 14.8 | 25.1 | 30 |
Impairment loss | 172.8 | 0 | 172.8 | 0 |
Operating (loss) profit | (116.7) | 54.5 | (70.8) | 84.8 |
Income from unconsolidated affiliates | 0.9 | 0.8 | 1.8 | 1.7 |
Interest expense | (10.5) | (12.8) | (20.7) | (26.3) |
(Loss) income from continuing operations before income taxes | (126.2) | 42.5 | (89.7) | 60.2 |
Income tax provision | (10.6) | (12.6) | (19.2) | (17.3) |
(Loss) income from continuing operations | (136.8) | 29.9 | (108.9) | 42.9 |
(Loss) income from discontinued operations, net of taxes | 0 | (0.2) | 0.1 | (0.2) |
Net (loss) income | (136.8) | 29.7 | (108.8) | 42.7 |
Other comprehensive (loss) income | ||||
Interest rate swaps | (8.7) | (3.5) | (9.9) | (12.2) |
Foreign currency translation | (4.2) | (0.9) | (3.8) | 2.2 |
Income tax benefit | 2.4 | 1 | 2.7 | 3.3 |
Comprehensive (loss) income | $ (147.3) | $ 26.3 | $ (119.8) | $ 36 |
Net (loss) income per common share — Basic | ||||
(Loss) income from continuing operations (in usd per share) | $ (2.05) | $ 0.45 | $ (1.63) | $ 0.65 |
(Loss) income from discontinued operations (in usd per share) | 0 | 0 | 0 | 0 |
Net (loss) income (in usd per share) | (2.05) | 0.45 | (1.63) | 0.64 |
Net (loss) income per common share — Diluted | ||||
(Loss) income from continuing operations (in usd per share) | (2.05) | 0.45 | (1.63) | 0.64 |
(Loss) income from discontinued operations (in usd per share) | 0 | 0 | 0 | 0 |
Net (loss) income (in usd per share) | $ (2.05) | $ 0.45 | $ (1.63) | $ 0.64 |
Weighted-average common and common equivalent shares outstanding | ||||
Basic (in shares) | 66.9 | 66.5 | 66.9 | 66.4 |
Diluted (in shares) | 66.9 | 66.8 | 66.9 | 66.7 |
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 | Retained EarningsCumulative Effect, Period of Adoption, Adjustment |
Dividends | ||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | $ 0.7 | $ 691.8 | $ (9) | $ 771.2 | ||
Balance, beginning of year (in shares) at Oct. 31, 2018 | 66 | |||||
Balance, beginning of year at Oct. 31, 2018 | $ 0.7 | 691.8 | (9) | 771.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued under employee stock purchase and share-based compensation plans (in shares) | 0.3 | |||||
Stock issued (taxes withheld) under employee stock purchase and share-based compensation plans, net | $ 0 | 0 | ||||
Repurchase of common stock (in shares) | 0 | |||||
Repurchase of common stock | $ 0 | 0 | ||||
Share-based compensation (reversal) expense | 8.8 | |||||
Other comprehensive loss | (6.7) | |||||
Net income | $ 42.7 | 42.7 | ||||
Dividends | ||||||
Common stock ($0.185, $0.180, $0.370, and $0.360 per share) | (23.8) | |||||
Stock issued under share-based compensation plans | (0.7) | |||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | 1,481.4 | $ 0.7 | 700.6 | (15.7) | 795.9 | $ 6.5 |
Balance, end of year (in shares) at Apr. 30, 2019 | 66.3 | |||||
Balance, end of year at Apr. 30, 2019 | 1,481.4 | $ 0.7 | 700.6 | (15.7) | 795.9 | 6.5 |
Dividends | ||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | $ 0.7 | 694.1 | (12.2) | 778.6 | ||
Balance, beginning of year (in shares) at Jan. 31, 2019 | 66.2 | |||||
Balance, beginning of year at Jan. 31, 2019 | $ 0.7 | 694.1 | (12.2) | 778.6 | ||
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 | 2.2 | ||||
Repurchase of common stock (in shares) | 0 | |||||
Repurchase of common stock | $ 0 | 0 | ||||
Share-based compensation (reversal) expense | 4.3 | |||||
Other comprehensive loss | (3.4) | |||||
Net income | 29.7 | 29.7 | ||||
Dividends | ||||||
Common stock ($0.185, $0.180, $0.370, and $0.360 per share) | (11.9) | |||||
Stock issued under share-based compensation plans | (0.5) | |||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | 1,481.4 | $ 0.7 | 700.6 | (15.7) | 795.9 | 6.5 |
Balance, end of year (in shares) at Apr. 30, 2019 | 66.3 | |||||
Balance, end of year at Apr. 30, 2019 | 1,481.4 | $ 0.7 | 700.6 | (15.7) | 795.9 | 6.5 |
Dividends | ||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | 1,481.4 | 0.7 | 700.6 | (15.7) | 795.9 | $ 6.5 |
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | 1,542 | $ 0.7 | 708.9 | (23.9) | 856.3 | |
Balance, beginning of year (in shares) at Oct. 31, 2019 | 66.6 | |||||
Balance, beginning of year at Oct. 31, 2019 | $ 1,542 | $ 0.7 | 708.9 | (23.9) | 856.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued under employee stock purchase and share-based compensation plans (in shares) | 0.2 | |||||
Stock issued (taxes withheld) under employee stock purchase and share-based compensation plans, net | $ 0 | (0.9) | ||||
Repurchase of common stock (in shares) | (0.2) | (0.2) | ||||
Repurchase of common stock | $ (5.1) | $ 0 | (5.1) | |||
Share-based compensation (reversal) expense | 4.2 | |||||
Other comprehensive loss | (11) | |||||
Net income | (108.8) | (108.8) | ||||
Dividends | ||||||
Common stock ($0.185, $0.180, $0.370, and $0.360 per share) | (24.6) | |||||
Stock issued under share-based compensation plans | (0.5) | |||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | 1,542 | $ 0.7 | 707.1 | (34.9) | 722.3 | |
Balance, end of year (in shares) at Apr. 30, 2020 | 66.6 | |||||
Balance, end of year at Apr. 30, 2020 | 1,395.2 | $ 0.7 | 707.1 | (34.9) | 722.3 | |
Dividends | ||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | $ 0.7 | 711.8 | (24.3) | 871.6 | ||
Balance, beginning of year (in shares) at Jan. 31, 2020 | 66.8 | |||||
Balance, beginning of year at Jan. 31, 2020 | $ 0.7 | 711.8 | (24.3) | 871.6 | ||
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 | 1.1 | ||||
Repurchase of common stock (in shares) | (0.2) | |||||
Repurchase of common stock | $ 0 | (5.1) | ||||
Share-based compensation (reversal) expense | (0.7) | |||||
Other comprehensive loss | (10.5) | |||||
Net income | (136.8) | (136.8) | ||||
Dividends | ||||||
Common stock ($0.185, $0.180, $0.370, and $0.360 per share) | (12.3) | |||||
Stock issued under share-based compensation plans | (0.1) | |||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | 1,395.2 | $ 0.7 | 707.1 | (34.9) | 722.3 | |
Balance, end of year (in shares) at Apr. 30, 2020 | 66.6 | |||||
Balance, end of year at Apr. 30, 2020 | 1,395.2 | $ 0.7 | 707.1 | (34.9) | 722.3 | |
Dividends | ||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09 | $ 1,395.2 | $ 0.7 | $ 707.1 | $ (34.9) | $ 722.3 |
Consolidated Statements of St_2
Consolidated Statements of Stockholder's' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends (in usd per share) | $ 0.185 | $ 0.180 | $ 0.370 | $ 0.360 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flows from operating activities | ||
Net (loss) income | $ (108.8) | $ 42.7 |
(Income) loss from discontinued operations, net of taxes | (0.1) | 0.2 |
(Loss) income from continuing operations | (108.9) | 42.9 |
Adjustments to reconcile (loss) income from continuing operations to net cash provided by operating activities of continuing operations | ||
Depreciation and amortization | 49.1 | 53.9 |
Impairment loss | 172.8 | 0 |
Deferred income taxes | (12.7) | (4.4) |
Share-based compensation expense | 4.2 | 8.8 |
Provision for bad debt | 10.6 | 2.4 |
Discount accretion on insurance claims | 0.4 | 0.4 |
Loss on sale of assets | 0.4 | 0.1 |
Income from unconsolidated affiliates | (1.8) | (1.7) |
Distributions from unconsolidated affiliates | 0.1 | 3.5 |
Changes in operating assets and liabilities | ||
Trade accounts receivable and costs incurred in excess of amounts billed | 55.2 | (90) |
Prepaid expenses and other current assets | (12.8) | (12.3) |
Right-of-use assets | 8.7 | |
Other noncurrent assets | (3.8) | (6.5) |
Trade accounts payable and other accrued liabilities | (74.6) | 22.8 |
Long-term lease liabilities | (9.4) | |
Insurance claims | 17.7 | 18.1 |
Income taxes payable | 25.1 | 13.5 |
Other noncurrent liabilities | 7.7 | 5 |
Total adjustments | 236.8 | 13.6 |
Net cash provided by operating activities of continuing operations | 127.8 | 56.5 |
Net cash provided by (used in) operating activities of discontinued operations | 0.1 | (0.2) |
Net cash provided by operating activities | 128 | 56.3 |
Cash flows from investing activities | ||
Additions to property, plant and equipment | (19.1) | (27.5) |
Proceeds from sale of assets | 4.8 | 0.4 |
Proceeds from redemption of auction rate security | 5 | 0 |
Net cash used in investing activities | (9.3) | (27.1) |
Cash flows from financing activities | ||
Taxes withheld from issuance of share-based compensation awards, net | (1.4) | (0.7) |
Repurchases of common stock | (5.1) | 0 |
Dividends paid | (24.6) | (23.8) |
Borrowings from credit facility | 1,048.3 | 665.8 |
Repayment of borrowings from credit facility | (658.1) | (653.8) |
Changes in book cash overdrafts | 18.2 | (4.1) |
Financing of energy savings performance contracts | 1.1 | 3.4 |
Repayment of finance leases | (1.5) | |
Repayment of finance leases | (1.8) | |
Net cash provided by (used in) financing activities | 376.8 | (15) |
Effect of exchange rate changes on cash and cash equivalents | 2 | 0.4 |
Net increase in cash and cash equivalents | 497.5 | 14.6 |
Cash and cash equivalents at beginning of year | 58.5 | 39.1 |
Cash and cash equivalents at end of year | $ 555.9 | $ 53.7 |
The Company and Nature of Opera
The Company and Nature of Operations | 6 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Nature of Operations | THE COMPANY AND NATURE OF OPERATIONS ABM Industries Incorporated, which operates through its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”), 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 | 6 Months Ended |
Apr. 30, 2020 | |
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, 2019 (“Annual Report”). Unless otherwise indicated, all references to years are to our fiscal years, which end on October 31. Impact of the Novel Coronavirus Pandemic A novel strain of coronavirus (“COVID-19”) has resulted in a worldwide health pandemic (the “Pandemic”). To date, the Pandemic has surfaced in nearly all regions around the world and resulted in business slowdowns and shutdowns, as well as global travel restrictions. In these financial statements and related disclosures we have assessed the current impact of the Pandemic on our financial condition, results of operations, and cash flows, as well as our estimates, forecasts, and accounting policies. We have made additional disclosures of these assessments, as necessary. Given the unprecedented nature of this situation, we cannot reasonably estimate the full extent of impact the Pandemic will have on our financial condition, results of operations, or cash flows in the foreseeable future. The ultimate impact of the Pandemic on our company is highly uncertain and will depend on future developments, and such impacts could exist for an extended period of time, even after the Pandemic subsides. The Pandemic continues to create a dynamic client environment, and we are working diligently to ensure our clients’ changing staffing and service needs are met while actively managing direct labor and related personnel costs, including furloughs or reduced hours for certain service employees in markets significantly impacted by shutdowns. In addition, we have taken various other human capital management actions to help align our organization operationally and help mitigate the financial impact of the Pandemic on our business, including temporary furloughs for certain staff and management employees. To continue supporting our furloughed staff and management employees during the Pandemic, we are paying 100% of health insurance premiums during the furlough period (estimated to be between one and three months) for those enrolled in health benefit plans. We have accrued $0.4 million associated with these costs as of and for the three months ended April 30, 2020, which is recorded within “Accrued compensation” on the accompanying unaudited Consolidated Balance Sheets and within “Selling, general and administrative expenses” on the accompanying unaudited Consolidated Statements of Comprehensive Income (Loss). Refer to additional discussion regarding the Pandemic and the impact on our business throughout this document, including Note 7, “Fair Value of Financial Instruments,” Note 9, “Credit Facility,” Item 2., “Management’s Discussion and Analysis of Financial Conditions and Results of Operations,” and Part II., Item 1A., “Risk Factors.” Prior Year Reclassifications During the third quarter of 2019, we made changes to our operating structure to better align the services and expertise of our Healthcare business with our other industry groups, allowing us to leverage our existing branch network to support the long-term growth of this business. As a result, our former Healthcare portfolio is now included primarily in our Business & Industry segment. Our prior period segment data in Note 13, “Segment Information,” has been reclassified to conform with our current period presentation. This change had no impact on our previously reported consolidated financial statements. 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. Discontinued Operations Following the sale of our Security business in 2015, we record all costs associated with this former business in discontinued operations. Such costs generally relate to litigation we retained and insurance reserves. 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: Three Months Ended April 30, Six Months Ended April 30, (in millions) 2020 2019 2020 2019 Business & Industry $ 61.7 $ 69.3 $ 135.4 $ 140.3 Aviation 20.7 23.5 46.6 47.6 Total $ 82.4 $ 92.8 $ 182.0 $ 188.0 Recently Adopted Accounting Standards Our significant accounting policies are described in Note 2, “Basis of Presentation and Significant Accounting Policies,” in our Annual Report. There have been no material changes to our significant accounting policies during the six months ended April 30, 2020, other than as described below. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) . Since the release of ASU 2016-02, the FASB issued the following additional ASUs further updating Topic 842: • In January 2018, ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 • In July 2018, ASU 2018-10, Codification Improvements to Topic 842 • In July 2018, ASU 2018-11, Leases (Topic 842): Targeted Improvements • In March 2019, ASU 2019-01, Leases (Topic 842): Codification Improvements Topic 842 replaced existing lease accounting guidance and is intended to provide enhanced transparency and comparability by requiring lessees to record most leases on the balance sheet. Under Topic 842, lessees are required to record on the balance sheet right-of-use (“ROU”) assets (the right to use an underlying asset for the lease term) and the corresponding lease liabilities (the obligation to make lease payments arising from the lease). The new guidance requires us to continue classifying leases as either operating or financing, with classification affecting the pattern of expense recognition in the Consolidated Statements of Comprehensive Income (Loss). In addition, the new standard requires enhanced disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. We adopted Topic 842 on November 1, 2019 on a modified retrospective basis using the optional transition method permitted under ASU 2018-11 and have used this effective date as the initial application date. Comparative prior period financial statements have not been restated and continue to be reported under the accounting standards in effect for those prior periods presented. Upon adoption, we elected the package of transition practical expedients that allowed us to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for existing leases. Additionally, we elected the practical expedient of not separating lease components from non-lease components for all asset classes. We also made an accounting policy election to not record ROU assets or lease liabilities for leases with an initial term of 12 months or less and will recognize payments for such leases in our Consolidated Statements of Comprehensive Income (Loss) on a straight-line basis over the lease term. We did not elect the use of hindsight for determining the reasonably certain lease term. The adoption of Topic 842 had a significant impact on our unaudited Consolidated Balance Sheet, but did not have a significant impact on our unaudited Consolidated Statement of Comprehensive Income (Loss), our unaudited Consolidated Statement of Stockholders' Equity, our unaudited Consolidated Statement of Cash Flows, our liquidity, or our compliance with the various covenants contained within our credit facility, as further described in Note 9, “Credit Facility.” The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. See Note 4, “Leases,” for additional information on our lease arrangements. The impact of adoption of Topic 842 on our unaudited Consolidated Balance Sheet was as follows: (in millions) Balance at Adjustments Due Balance at ASSETS Right-of-use assets (1) $ — $ 167.5 $ 167.5 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of lease liabilities (2) $ — $ 36.3 $ 36.3 Other accrued liabilities (3) 158.2 (3.0) 155.2 Long-term lease liabilities (4) — 154.2 154.2 Other noncurrent liabilities (5) 78.8 (20.0) 58.8 (1) Represents capitalization of operating lease assets and reclassification of prepaid rent, deferred rent, lease exit impairment liabilities, and lease incentives and tenant improvements on operating leases. (2) Represents the recognition of short-term operating lease liabilities. (3) Represents short-term deferred rent reclassified to ROU assets. (4) Represents the recognition of long-term operating lease liabilities. (5) Represents long-term deferred rent, lease incentives and tenant improvements, and lease exit impairment liabilities reclassified to ROU assets. In April 2020, the FASB issued a question and answer document focused on the application of lease accounting guidance to lease concessions provided as a result of the Pandemic (the “Lease Modification Q&A”). The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease when the total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. We have elected this practical |
Revenues
Revenues | 6 Months Ended |
Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES Disaggregation of Revenues We generate revenues under several types of contracts, as further explained below. 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 Business & Industry (“B&I”), Technology and Manufacturing (“T&M”), Aviation, Education, and Technical Solutions, as described in Note 13, “Segment Information.” Three Months Ended April 30, 2020 Six Months Ended April 30, 2020 (in millions) B&I T&M Aviation Education Technical Total B&I T&M Aviation Education Technical Total Janitorial (1) $ 597.0 $ 190.3 $ 31.9 $ 177.5 $ — $ 996.7 $ 1,190.5 $ 376.0 $ 66.7 $ 363.7 $ — $ 1,996.9 Parking (2) 97.1 7.4 71.3 0.6 — 176.4 222.9 15.5 156.3 1.4 — 396.1 Facility Services (3) 91.3 35.9 7.9 22.0 — 157.1 192.8 76.1 18.5 43.0 — 330.3 Building & Energy Solutions (4) — — — — 122.3 122.3 — — — — 264.3 264.3 Airline Services (5) 0.1 — 73.7 — — 73.8 0.3 — 182.0 — — 182.3 $ 785.6 $ 233.7 $ 184.7 $ 200.1 $ 122.3 $ 1,526.4 $ 1,606.5 $ 467.6 $ 423.5 $ 408.0 $ 264.3 $ 3,170.0 Elimination of inter-segment revenues (30.4) (61.0) Total $ 1,496.0 $ 3,109.0 Three Months Ended April 30, 2019 Six Months Ended April 30, 2019 (in millions) B&I T&M Aviation Education Technical Total B&I T&M Aviation Education Technical Total Janitorial (1) $ 576.3 $ 183.8 $ 31.1 $ 187.9 $ — $ 979.1 $ 1,160.2 $ 371.0 $ 63.0 $ 375.4 $ — $ 1,969.6 Parking (2) 125.7 5.9 84.3 0.8 — 216.7 253.8 13.3 170.1 1.6 — 438.8 Facility Services (3) 105.6 34.6 16.6 20.6 — 177.4 222.2 76.0 33.3 41.3 — 372.7 Building & Energy Solutions (4) — — — — 135.9 135.9 — — — — 252.0 252.0 Airline Services (5) 0.2 — 118.0 — — 118.2 0.4 0.1 236.1 — — 236.5 $ 807.7 $ 224.3 $ 250.0 $ 209.3 $ 135.9 $ 1,627.3 $ 1,636.6 $ 460.4 $ 502.4 $ 418.2 $ 252.0 $ 3,269.6 Elimination of inter-segment revenues (32.6) (67.0) Total $ 1,594.7 $ 3,202.6 (1) Janitorial arrangements provide a wide range of essential cleaning services for commercial office buildings, airports and other transportation centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, and stadiums and arenas. These arrangements are often structured as monthly fixed-price, square-foot, cost-plus, and tag services 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 tag services contracts. (4) Building & Energy Solutions arrangements provide custom energy solutions, electrical, HVAC, lighting, and other general maintenance and repair services for clients in the public and private sectors and are generally structured as Energy Savings and Fixed-Price Repair and Refurbishment contracts. We also franchise certain operations under franchise agreements relating to our Linc Network and TEGG brands, pursuant to franchise contracts. (5) Airline Services arrangements support airlines and airports with services such as passenger assistance, catering logistics, and airplane cabin maintenance. These arrangements are often structured as monthly fixed-price, cost-plus, transaction price, and hourly contracts. 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. 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. 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; tag services; 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 April 30, 2020, performance obligations that were unsatisfied or partially unsatisfied for which we expect to recognize revenue totaled $173.0 million. We expect to recognize revenue on approximately 82% of the remaining performance obligations over the next 12 months, with the remainder recognized thereafter, based on our estimates of project timing. These amounts exclude variable consideration primarily related to: (i) contracts where we have determined that the contract consists of a series of distinct service periods and revenues are based on future performance that cannot be estimated at contract inception; (ii) parking contracts where we and the customer share the gross revenues or operating profit for the location; and (iii) contracts where transaction prices include performance incentives that are based on future performance and therefore cannot be estimated at contract inception. We apply the practical expedient that permits exclusion of information about the remaining performance obligations with original expected durations of one year or less. Contract Balances The 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 a project 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) April 30, 2020 October 31, 2019 Contract assets Billed trade receivables (1) $ 956.5 $ 978.7 Unbilled trade receivables (1) 30.6 56.9 Costs incurred in excess of amounts billed (2) 67.7 72.6 Capitalized commissions (3) 21.3 21.8 (1) Included in trade accounts receivable, net, on the consolidated balance sheets. The fluctuations correlate directly to the execution of new customer contracts and to invoicing and collections from customers in the normal course of business. (2) Fluctuation is primarily due to the timing of payments on our contracts measured using the cost-to-cost method of revenue recognition. (3) Included in other current assets and other noncurrent assets on the consolidated balance sheets. During the six months ended April 30, 2020, we capitalized $6.4 million of new costs and amortized $6.9 million o f previously capitalized costs. There was no impairment loss recorded on the costs capitalized. (in millions) Six Months Ended Contract liabilities (1) Balance at beginning of period $ 38.0 Additional contract liabilities 171.3 Recognition of deferred revenue (174.7) Balance at end of period $ 34.6 |
Leases
Leases | 6 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | LEASES We primarily lease office space, parking facilities, warehouses, vehicles, and equipment. We determine if an arrangement is a lease at inception and begin recording lease activity at the commencement date, which is generally the date in which we take possession of or control the physical use of the asset. ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. We use our incremental borrowing rate to determine the present value of future lease payments unless the implicit rate is readily determinable. Our incremental borrowing rate is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. This incremental borrowing rate is applied to the minimum lease payments within each lease agreement to determine the amounts of our ROU assets and lease liabilities. Our incremental borrowing rate as of November 1, 2019 was utilized for the initial measurement of operating lease liabilities upon adoption of Topic 842, as described in Note 2, “Basis of Presentation and Significant Accounting Policies,” and for leases entered into during the quarter ended January 31, 2020. Our incremental borrowing rate as of January 31, 2020 was utilized for new leases entered into during the quarter ended April 30, 2020. Our lease terms range from 1 to 30 years. Some leases include one or more options to renew, with renewal terms that can extend the lease term. We typically include options to extend the lease in a lease term when it is reasonably certain that we will exercise that option and when doing so is at our sole discretion. Certain equipment and vehicle leases may also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Typically, if we decide to cancel or terminate a lease before the end of its term, we would owe the lessor the remaining lease payments under the term of such lease. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. We may rent or sublease to third parties certain real estate assets that we no longer use. Lease agreements may contain rent escalation clauses, rent holidays, or certain landlord incentives, including tenant improvement allowances. Prior to November 1, 2019, we recognized lease expense related to operating leases on a straight-line basis over the terms of the leases and, accordingly, recorded the difference between cash rent payments and recognition of rent expense as a deferred rent liability or prepaid rent. Landlord-funded leasehold improvements were also recorded as deferred rent liabilities and were amortized as a reduction of rent expense over the noncancelable term of the related operating lease. The ROU assets recognized upon adoption of Topic 842 include cumulative prepaid or accrued rent on the adoption date, unamortized lease incentives, and unamortized initial direct costs initially recognized prior to adoption of Topic 842. Following adoption of Topic 842, ROU assets include amounts for scheduled rent increases and are reduced by lease incentive amounts. Certain of our lease agreements include variable rent payments, consisting primarily of rental payments adjusted periodically for inflation and amounts paid to the lessor based on cost or consumption, such as maintenance and utilities. Certain of our parking arrangements also contain variable rent payments that are a percentage of parking services revenue based on contractual levels. Variable rent lease components are not included in the lease liability. Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services , are excluded from the scope of Topic 842. Lease costs associated with these arrangements are recorded as a reduction of revenues. See Note 3, “Revenues,” for further discussion. The components of lease assets and liabilities and their classification on our unaudited Consolidated Balance Sheets as of April 30, 2020 were as follows: Balance at (in millions) Classification April 30, 2020 Lease assets Operating leases Right-of-use assets $ 158.8 Finance leases Property, plant and equipment, net (1) 7.9 Total lease assets $ 166.7 Lease liabilities Current liabilities Operating leases Current portion of lease liabilities $ 36.0 Finance leases Other accrued liabilities 4.5 Noncurrent liabilities Operating leases Long-term lease liabilities 144.8 Finance leases Other noncurrent liabilities 1.3 Total lease liabilities $ 186.6 (1) Finance lease assets are recorded net of accumulated amortization of $12.2 million as of April 30, 2020. Total lease costs for the three and six months ended April 30, 2020 were $25.8 million and $53.6 million, respectively, including operating leases of $24.6 million and $51.2 million, respectively, and finance leases of $1.2 million, and $2.4 million, respectively. The components of lease costs and classification within the unaudited Consolidated Statements of Comprehensive Income (Loss) were as follows: Three Months Ended Six Months Ended (in millions) April 30, 2020 April 30, 2020 Operating lease costs: Operating expenses (1)(2) $ 17.1 $ 38.1 Selling, general and administrative expenses (3) 7.5 13.1 Finance lease costs: Operating expenses (4) 1.0 2.1 Interest expense (5) 0.2 0.3 Total lease costs $ 25.8 $ 53.6 (1) Related to certain parking arrangements. (2) Includes short-term lease costs and variable lease costs. (3) Includes short-term lease costs. (4) Represents amortization of leased assets. (5) Interest on lease liabilities. The following table presents information on short-term and variable lease costs: Three Months Ended Six Months Ended (in millions) April 30, 2020 April 30, 2020 Short-term lease costs $ 11.9 $ 26.4 Variable lease costs 1.0 3.0 Total short-term and variable lease costs $ 12.9 $ 29.4 Sublease income generated during the three and six months ended April 30, 2020 was immaterial. We continue to monitor the impact of the Pandemic on our subleases; however, we do not expect a significant impact. The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our unaudited Consolidated Balance Sheets as of April 30, 2020 are as follows: (in millions) Operating Finance Total Remainder of fiscal 2020 $ 22.0 $ 1.7 $ 23.7 Fiscal 2021 40.3 2.9 43.2 Fiscal 2022 33.9 1.5 35.4 Fiscal 2023 28.7 0.8 29.5 Fiscal 2024 23.3 — 23.3 Thereafter 59.0 — 59.0 Total lease payments 207.1 6.9 214.0 Less: imputed interest 26.3 1.1 27.4 Present value of lease liabilities $ 180.8 $ 5.8 $ 186.6 Future sublease rental income was excluded for the periods shown above, as the amounts are immaterial. We have entered into operating lease arrangements as of April 30, 2020 that are effective for future periods. The total amount of ROU assets and lease liabilities related to these arrangements is immaterial. The following table includes the weighted-average remaining lease terms, in years, and the weighted-average discount rate used to calculate the present value of operating lease liabilities: As of April 30, 2020 Weighted-average remaining lease term (years) Operating leases 6.3 Finance leases 2.4 Weighted-average discount rate Operating leases 4.05 % Finance leases 4.42 % The following table includes supplemental cash and non-cash information related to operating leases: Six Months Ended (in millions) April 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 23.9 Operating cash flows from finance leases 0.3 Financing cash flows from finance leases 1.5 Lease assets obtained in exchange for new operating lease liabilities (1) 10.0 (1) Excludes the amount initially capitalized in conjunction with the adoption of Topic 842. As previously disclosed in our Annual Report, the amounts of minimum future commitments under non-cancelable operating and capital leases as of October 31, 2019 in accordance with Topic 840 were as follows: (in millions) Operating and Other (1) Capital Total Fiscal 2020 $ 42.8 $ 3.1 $ 45.9 Fiscal 2021 35.5 2.5 38.0 Fiscal 2022 30.3 1.3 31.6 Fiscal 2023 25.6 0.6 26.2 Fiscal 2024 20.5 — 20.5 Thereafter 51.8 — 51.8 Total (2) $ 206.5 $ 7.5 $ 214.0 (1) Includes total estimated sublease rental income of $15.8 million. |
Leases | LEASES We primarily lease office space, parking facilities, warehouses, vehicles, and equipment. We determine if an arrangement is a lease at inception and begin recording lease activity at the commencement date, which is generally the date in which we take possession of or control the physical use of the asset. ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term with lease expense recognized on a straight-line basis. We use our incremental borrowing rate to determine the present value of future lease payments unless the implicit rate is readily determinable. Our incremental borrowing rate is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. This incremental borrowing rate is applied to the minimum lease payments within each lease agreement to determine the amounts of our ROU assets and lease liabilities. Our incremental borrowing rate as of November 1, 2019 was utilized for the initial measurement of operating lease liabilities upon adoption of Topic 842, as described in Note 2, “Basis of Presentation and Significant Accounting Policies,” and for leases entered into during the quarter ended January 31, 2020. Our incremental borrowing rate as of January 31, 2020 was utilized for new leases entered into during the quarter ended April 30, 2020. Our lease terms range from 1 to 30 years. Some leases include one or more options to renew, with renewal terms that can extend the lease term. We typically include options to extend the lease in a lease term when it is reasonably certain that we will exercise that option and when doing so is at our sole discretion. Certain equipment and vehicle leases may also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. Typically, if we decide to cancel or terminate a lease before the end of its term, we would owe the lessor the remaining lease payments under the term of such lease. Our lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. We may rent or sublease to third parties certain real estate assets that we no longer use. Lease agreements may contain rent escalation clauses, rent holidays, or certain landlord incentives, including tenant improvement allowances. Prior to November 1, 2019, we recognized lease expense related to operating leases on a straight-line basis over the terms of the leases and, accordingly, recorded the difference between cash rent payments and recognition of rent expense as a deferred rent liability or prepaid rent. Landlord-funded leasehold improvements were also recorded as deferred rent liabilities and were amortized as a reduction of rent expense over the noncancelable term of the related operating lease. The ROU assets recognized upon adoption of Topic 842 include cumulative prepaid or accrued rent on the adoption date, unamortized lease incentives, and unamortized initial direct costs initially recognized prior to adoption of Topic 842. Following adoption of Topic 842, ROU assets include amounts for scheduled rent increases and are reduced by lease incentive amounts. Certain of our lease agreements include variable rent payments, consisting primarily of rental payments adjusted periodically for inflation and amounts paid to the lessor based on cost or consumption, such as maintenance and utilities. Certain of our parking arrangements also contain variable rent payments that are a percentage of parking services revenue based on contractual levels. Variable rent lease components are not included in the lease liability. Service concession arrangements within the scope of ASU No. 2017-10, Service Concession Arrangements (Topic 853): Determining the Customer of the Operation Services , are excluded from the scope of Topic 842. Lease costs associated with these arrangements are recorded as a reduction of revenues. See Note 3, “Revenues,” for further discussion. The components of lease assets and liabilities and their classification on our unaudited Consolidated Balance Sheets as of April 30, 2020 were as follows: Balance at (in millions) Classification April 30, 2020 Lease assets Operating leases Right-of-use assets $ 158.8 Finance leases Property, plant and equipment, net (1) 7.9 Total lease assets $ 166.7 Lease liabilities Current liabilities Operating leases Current portion of lease liabilities $ 36.0 Finance leases Other accrued liabilities 4.5 Noncurrent liabilities Operating leases Long-term lease liabilities 144.8 Finance leases Other noncurrent liabilities 1.3 Total lease liabilities $ 186.6 (1) Finance lease assets are recorded net of accumulated amortization of $12.2 million as of April 30, 2020. Total lease costs for the three and six months ended April 30, 2020 were $25.8 million and $53.6 million, respectively, including operating leases of $24.6 million and $51.2 million, respectively, and finance leases of $1.2 million, and $2.4 million, respectively. The components of lease costs and classification within the unaudited Consolidated Statements of Comprehensive Income (Loss) were as follows: Three Months Ended Six Months Ended (in millions) April 30, 2020 April 30, 2020 Operating lease costs: Operating expenses (1)(2) $ 17.1 $ 38.1 Selling, general and administrative expenses (3) 7.5 13.1 Finance lease costs: Operating expenses (4) 1.0 2.1 Interest expense (5) 0.2 0.3 Total lease costs $ 25.8 $ 53.6 (1) Related to certain parking arrangements. (2) Includes short-term lease costs and variable lease costs. (3) Includes short-term lease costs. (4) Represents amortization of leased assets. (5) Interest on lease liabilities. The following table presents information on short-term and variable lease costs: Three Months Ended Six Months Ended (in millions) April 30, 2020 April 30, 2020 Short-term lease costs $ 11.9 $ 26.4 Variable lease costs 1.0 3.0 Total short-term and variable lease costs $ 12.9 $ 29.4 Sublease income generated during the three and six months ended April 30, 2020 was immaterial. We continue to monitor the impact of the Pandemic on our subleases; however, we do not expect a significant impact. The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our unaudited Consolidated Balance Sheets as of April 30, 2020 are as follows: (in millions) Operating Finance Total Remainder of fiscal 2020 $ 22.0 $ 1.7 $ 23.7 Fiscal 2021 40.3 2.9 43.2 Fiscal 2022 33.9 1.5 35.4 Fiscal 2023 28.7 0.8 29.5 Fiscal 2024 23.3 — 23.3 Thereafter 59.0 — 59.0 Total lease payments 207.1 6.9 214.0 Less: imputed interest 26.3 1.1 27.4 Present value of lease liabilities $ 180.8 $ 5.8 $ 186.6 Future sublease rental income was excluded for the periods shown above, as the amounts are immaterial. We have entered into operating lease arrangements as of April 30, 2020 that are effective for future periods. The total amount of ROU assets and lease liabilities related to these arrangements is immaterial. The following table includes the weighted-average remaining lease terms, in years, and the weighted-average discount rate used to calculate the present value of operating lease liabilities: As of April 30, 2020 Weighted-average remaining lease term (years) Operating leases 6.3 Finance leases 2.4 Weighted-average discount rate Operating leases 4.05 % Finance leases 4.42 % The following table includes supplemental cash and non-cash information related to operating leases: Six Months Ended (in millions) April 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 23.9 Operating cash flows from finance leases 0.3 Financing cash flows from finance leases 1.5 Lease assets obtained in exchange for new operating lease liabilities (1) 10.0 (1) Excludes the amount initially capitalized in conjunction with the adoption of Topic 842. As previously disclosed in our Annual Report, the amounts of minimum future commitments under non-cancelable operating and capital leases as of October 31, 2019 in accordance with Topic 840 were as follows: (in millions) Operating and Other (1) Capital Total Fiscal 2020 $ 42.8 $ 3.1 $ 45.9 Fiscal 2021 35.5 2.5 38.0 Fiscal 2022 30.3 1.3 31.6 Fiscal 2023 25.6 0.6 26.2 Fiscal 2024 20.5 — 20.5 Thereafter 51.8 — 51.8 Total (2) $ 206.5 $ 7.5 $ 214.0 (1) Includes total estimated sublease rental income of $15.8 million. |
Restructuring and Related Costs
Restructuring and Related Costs | 6 Months Ended |
Apr. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | RESTRUCTURING AND RELATED COSTS We may periodically engage in various restructuring activities intended to drive long-term profitable growth and increase operational efficiency, which can include streamlining and realigning our overall organizational structure and reallocating resources. These activities may result in restructuring costs related to employee severance, other project fees, external support fees, lease exit costs, and asset impairment charges. Recently, our significant restructuring activities have been primarily associated with integrating our acquisition of GCA Services Group (“GCA”) and implementing our 2020 Vision initiative, as described below. GCA Restructuring and Other Initiatives Following the acquisition of GCA, during the first quarter of 2018 we initiated a restructuring program to achieve cost synergies and subsequently incurred expenses primarily related to employee severance, the migration and upgrade of several key technology platforms, and the consolidation of certain real estate leases. Additionally, during 2019 we reorganized our former Healthcare business and incurred immaterial severance expense. In early 2020 we continued our technology-based modernization efforts, including standardizing our financial systems. However, due to the Pandemic, the majority of these projects were temporarily suspended during the second quarter of 2020. 2020 Vision Restructuring During the fourth quarter of 2015, we initiated a restructuring plan as part of a comprehensive strategy intended to have a positive transformative effect on ABM (the “ 2020 Vision ”). These actions were substantially completed by the end of fiscal 2019 at a cumulative cost of $66.5 million. Rollforward of Restructuring and Related Liabilities (in millions) Balance, Costs Recognized (1) Payments Non-Cash Items Balance, Employee severance $ 3.0 $ 0.2 $ (1.5) $ — $ 1.7 External support fees 0.5 1.4 (0.5) — 1.5 Other project fees 0.7 3.3 (3.9) (0.2) — Lease exit costs and asset impairment 2.7 — (0.2) (2.5) — Total $ 7.0 $ 5.0 $ (6.0) $ (2.7) $ 3.2 (1) We include these costs within corporate expenses. Cumulative Restructuring and Related Charges (in millions) External Support Fees Employee Severance Other Project Fees Lease Exit Costs Asset Impairment Total GCA and Other $ 4.9 $ 18.3 $ 15.7 $ 0.7 $ — $ 39.6 2020 Vision 30.0 13.0 10.7 7.7 5.2 66.5 Total $ 34.9 $ 31.2 $ 26.3 $ 8.4 $ 5.2 $ 106.1 |
Net (Loss) Income Per Common Sh
Net (Loss) Income Per Common Share | 6 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Common Share | NET (LOSS) INCOME PER COMMON SHARE Basic and Diluted Net (Loss) Income Per Common Share Calculations Three Months Ended April 30, Six Months Ended April 30, (in millions, except per share amounts) 2020 2019 2020 2019 (Loss) income from continuing operations $ (136.8) $ 29.9 $ (108.9) $ 42.9 (Loss) income from discontinued operations, net of — (0.2) 0.1 (0.2) Net (loss) income $ (136.8) $ 29.7 $ (108.8) $ 42.7 Weighted-average common and common 66.9 66.5 66.9 66.4 Effect of dilutive securities (1) Restricted stock units — 0.2 — 0.2 Stock options — 0.1 — 0.1 Weighted-average common and common 66.9 66.8 66.9 66.7 Net (loss) income per common share — Basic (Loss) income from continuing operations $ (2.05) $ 0.45 $ (1.63) $ 0.65 (Loss) income from discontinued operations — — — — Net (loss) income $ (2.05) $ 0.45 $ (1.63) $ 0.64 Net (loss) income per common share — Diluted (Loss) income from continuing operations $ (2.05) $ 0.45 $ (1.63) $ 0.64 (Loss) income from discontinued operations — — — — Net (loss) income $ (2.05) $ 0.45 $ (1.63) $ 0.64 (1) Excludes the impact of potentially dilutive outstanding share-based securities that are excluded from the calculation of diluted loss per share in periods when we have a loss, as their inclusion would have an anti-dilutive effect. Such impact is included in the table below. Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans Three Months Ended April 30, Six Months Ended April 30, (in millions) 2020 2019 2020 2019 Anti-dilutive 0.8 0.3 0.6 0.3 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Hierarchy of Our Financial Instruments Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (in millions) Fair Value Hierarchy April 30, 2020 October 31, 2019 Cash and cash equivalents (1) 1 $ 555.9 $ 58.5 Insurance deposits (2) 1 0.7 0.8 Assets held in funded deferred compensation plan (3) 1 2.3 2.5 Credit facility (4) 2 1,198.6 808.4 Interest rate swap liabilities (5) 2 21.2 14.6 Investments in auction rate securities (6) 3 — 5.0 (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 8, “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 syndicated line of credit and term loan. Due to variable interest rates, the carrying value of outstanding borrowings under our line of credit and term loan approximates the fair value. See Note 9, “Credit Facility,” 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 London Interbank Offered Rate (“LIBOR”) forward rates at the end of the period. At April 30, 2020 and October 31, 2019, our interest rate swaps are included in “Other noncurrent liabilities” on the accompanying unaudited Consolidated Balance Sheets. See Note 9, “Credit Facility,” for further information. (6) The fair value of investments in auction rate securities is based on discounted cash flow valuation models, primarily utilizing unobservable inputs, including assumptions about the underlying collateral, credit risks associated with the issuer, credit enhancements associated with financial insurance guarantees, and the possibility of the security being re-financed by the issuer or having a successful auction. At October 31, 2019 we held an investment in one auction rate security that had an original principal amount, amortized cost, and fair value of $5.0 million that was included in “Other investments” on the accompanying unaudited Consolidated Balance Sheets. During the first quarter of 2020, this auction rate security was called by the issuer, and we received proceeds for the fair value of this debt instrument of $5.0 million. There were no unrealized gains or losses on this auction rate security included in accumulated other comprehensive loss (“AOCL”). At April 30, 2020 we had no investments in auction rate securities. During the six months ended April 30, 2020, we had no transfers of assets or liabilities between any of the above hierarchy levels. Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis In addition to assets and liabilities that are measured at fair value on a recurring basis, we are also required to measure certain items at fair value on a non-recurring basis. These assets can include: goodwill; intangible assets; property, plant and equipment; lease-related ROU assets; and long-lived assets that have been reduced to fair value when they are held for sale. If certain triggering events occur, or if an annual impairment test is required, we would evaluate these non-financial assets for impairment. If an impairment were to occur, the asset would be recorded at the estimated fair value, using primarily unobservable Level 3 inputs. During the second quarter of 2020, given the general deterioration in economic and market conditions arising from the Pandemic, we identified a triggering event indicating possible impairment of goodwill and intangible assets, as further described below. We did not identify impairment of our property, plant and equipment, lease-related ROU assets, or long-lived assets. Goodwill Due to the triggering event identified above arising from the impact of the Pandemic, we first performed a qualitative assessment of goodwill to determine whether it was more likely than not that impairment occurred within our goodwill reporting units. Based on this qualitative assessment, we determined that goodwill impairment was not more likely than not in our goodwill reporting units, other than in three (within Education, Aviation, and our U.K. Technical Solutions business). As a result, we performed an interim quantitative impairment test as of March 31, 2020 on these goodwill reporting units. For the three goodwill reporting units tested quantitatively, we estimated the fair value using a weighting of fair values derived from an income approach and a market approach, as further described below. Based on the evaluation performed, we determined that goodwill was impaired for each of the three goodwill reporting units evaluated and recognized a non-cash impairment charge totaling $163.8 million ($99.3 million related to Education, $55.5 million related to Aviation, and $9.0 million related to our U.K. Technical Solutions business). The impairment charge is included in “Impairment loss” on our unaudited Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended April 30, 2020 and is not tax deductible. The only other changes to the balance of goodwill from October 31, 2019 are translation adjustments. We estimate the fair value of each reporting unit using a combination of the income approach and the market approach. The income approach incorporates the use of a discounted cash flow method in which the estimated future cash flows and terminal value are calculated for each reporting unit and then discounted to present value using an appropriate discount rate. The discount rates utilized in the income approach valuation method are summarized in the table below. Discount Education 10.0% Aviation 10.5% Technical Solutions 11.0% The market approach estimates the fair value of a reporting unit by using market comparables for reasonably similar public companies and a control premium of 15.0%. The valuation of our reporting units requires significant judgment in evaluating recent indicators of market activity and estimated future cash flows, discount rates, and other factors. Our impairment analyses contain inherent uncertainties due to uncontrollable events that could positively or negatively impact anticipated future economic and operating conditions. In making these estimates, the weighted-average cost of capital is utilized to calculate the present value of future cash flows and terminal value. Many variables go into estimating future cash flows, including estimates of our future revenue growth and operating results. When estimating our projected revenue growth and future operating results, we consider industry trends, economic data, and our competitive advantage. If future cash flows or future growth rates vary from what is expected, including those assumptions relating to the duration and severity of the Pandemic, this may reduce the underlying cash flows used to estimate fair values and result in a further decline in fair value, which may trigger future impairment charges. Intangible Assets As a result of the goodwill triggering event described above, we also performed recoverability tests on our intangible assets within each of those segments, primarily customer contracts and relationships, as of March 31, 2020. The recoverability tests were based on forecasts of undiscounted cash flows for each asset group. The results of the recoverability tests indicated certain customer contracts and relationships within our Aviation and U.K. Technical Solutions businesses were not recoverable. As such, we recognized net impairment charges of $5.6 million related to Aviation (consisting of a $13.8 million reduction in the gross carrying amount of the underlying customer relationships less $8.2 million of accumulated amortization) and $3.4 million related to our U.K. Technical Solutions business (consisting of an $8.7 million reduction in the gross carrying amount of the underlying customer relationships less $5.3 million of accumulated amortization). These impairment charges are included in “Impairment loss” on our unaudited Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended April 30, 2020. |
Insurance
Insurance | 6 Months Ended |
Apr. 30, 2020 | |
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 Update Performed During 2020 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 first quarter of 2020, we performed an actuarial review of the majority of our casualty insurance programs that evaluated all changes made to claims reserves and claims payment activity for the period of May 1, 2019 through October 31, 2019 (the “Actuarial Review”). This Actuarial Review was comprehensive in nature and was based on loss development patterns, trend assumptions, and underlying expected loss costs during the period analyzed. During the second quarter of 2020, we performed an interim actuarial update of the majority of our casualty insurance programs that considered changes in claims development and claims payment activity for the period of November 1, 2019 through January 31, 2020 (the “Interim Update”). This Interim Update was abbreviated in nature based on actual versus expected development during the periods analyzed and relied on the key assumptions in the Actuarial Review (most notably loss development patterns, trend assumptions, and underlying expected loss costs). Based on the results of the Actuarial Review, at January 31, 2020, we decreased our total reserves for prior periods by $6.6 million. The results of the Interim Update performed during the three months ended April 30, 2020 did not require a further adjustment to our reserves in the aggregate. For the six months ended April 30, 2020, the total decrease to our reserves for claims related to prior periods was $6.6 million. This adjustment compares to a $5.0 million increase to prior year claims during the six months ended April 30, 2019. We will continue to assess ongoing developments, which may result in further adjustments to reserves. Insurance Related Balances and Activity (in millions) April 30, 2020 October 31, 2019 Insurance claim reserves, excluding medical and dental $ 518.2 $ 507.8 Medical and dental claim reserves 14.9 7.2 Insurance recoverables 64.5 64.5 At April 30, 2020 and October 31, 2019, 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) April 30, 2020 October 31, 2019 Standby letters of credit $ 143.6 $ 141.0 Surety bonds 85.4 90.8 Restricted insurance deposits 0.7 0.8 Total $ 229.7 $ 232.6 |
Credit Facility
Credit Facility | 6 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Credit Facility | CREDIT FACILITY 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 and an $800.0 million amortizing term loan, both of which are scheduled to mature on September 1, 2022. In accordance with the terms of the Credit Facility, the revolving line of credit was reduced to $800.0 million on September 1, 2018. In late March 2020, we borrowed approximately $300 million as a precautionary measure to provide increased liquidity and preserve financial flexibility in response to uncertainty resulting from the Pandemic. This represented all remaining amounts then available under the revolving line of credit. We may repay amounts borrowed under the Credit Facility at any time without penalty. The Credit Facility also provides for the issuance of up to $300.0 million for standby letters of credit and the issuance of up to $75.0 million in swingline advances. The obligations under the Credit Facility are secured on a first-priority basis by a lien on substantially all of our assets and properties, subject to certain exceptions. To further enhance our financial flexibility as a precautionary measure in response to uncertainty arising from the Pandemic, we amended our Credit Facility (the “Amendment”) on May 28, 2020, as further described below. The Amendment modified the financial covenants under the Credit Facility including: (i) replacing a maximum total leverage ratio with a maximum total net leverage ratio that varies on a quarterly basis and adjusts to 4.00 to 1.00 by the quarter ending October 31, 2022; (ii) modifying the minimum fixed charge coverage ratio on a quarterly basis, which adjusts to 1.25 to 1.00 as of the quarter ending April 30, 2022; and (iii) adding a minimum liquidity (defined in the Amendment as domestic cash plus available revolving loans) of $250.0 million. These financial covenants were effective with the quarter ended April 30, 2020. Our borrowing capacity is subject to, and limited by, compliance with these covenants. The Amendment changed the interest rate, interest margins, and commitment fees applicable to loans and commitments under the Credit Facility. It also added a new anti-cash hoarding mandatory prepayment that requires us to repay outstanding revolving loans or swingline loans if, at any time, we have in excess of $250 million of cash and cash equivalents on our balance sheet in future periods. The Amendment made certain additional changes to the negative covenants restrictions under the Credit Facility, including, subject to certain exceptions, restrictions to our ability to make acquisitions, share repurchases, and other defined restricted payments, depending on our total net leverage ratio. At April 30, 2020, we were in compliance with these covenants. Prior to the Amendment, borrowings under the Credit Facility bore interest at a rate equal to 1-month LIBOR plus a spread that was based upon our leverage ratio. The spread ranged from 1.00% to 2.25% for Eurocurrency loans and 0.00% to 1.25% for base rate loans. At April 30, 2020, the weighted average interest rate on our outstanding borrowings was 2.99%. We were also charged a commitment fee, based on our leverage ratio, that ranged from 0.200% to 0.350% on the average daily unused portion of the revolving line of credit that was paid quarterly in arrears. For purposes of this calculation, irrevocable standby letters of credit, which are issued primarily in conjunction with our insurance programs, and cash borrowings were included as outstanding under the line of credit. Subsequent to the Amendment, borrowings under the Credit Facility bear interest at a rate equal to 1-month LIBOR plus a spread that is based upon our total leverage ratio. The spread ranges from 1.00% to 2.75% for revolving Eurocurrency loans and 0.00% to 1.75% for revolving base rate loans. We also pay a commitment fee, quarterly in arrears, that is based on our total leverage ratio ranging from 0.200% to 0.450% on the average daily unused portion of the revolving line of credit. For purposes of this calculation, irrevocable standby letters of credit, which are issued primarily in conjunction with our insurance programs, and cash borrowings are included as outstanding under the revolving line of credit. The 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, or 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, the lenders can terminate or suspend our access to the 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. Total deferred financing costs related to the Credit Facility were $18.7 million, consisting of $13.4 million related to the term loan and $5.2 million related to the line of credit, which are being amortized to interest expense over the term of the Credit Facility. We incurred total fees of $4.6 million in conjunction with the Amendment, the majority of which will be capitalized and amortized over the remaining term of the Credit Facility. Credit Facility Information (in millions) April 30, 2020 October 31, 2019 Current portion of long-term debt Gross term loan $ 90.0 $ 60.0 Unamortized deferred financing costs (2.6) (2.8) Current portion of term loan $ 87.4 $ 57.2 Long-term debt Gross term loan $ 620.0 $ 680.0 Unamortized deferred financing costs (2.9) (4.1) Total noncurrent portion of term loan 617.1 675.9 Revolving line of credit (1)(2) 488.6 68.4 Long-term debt $ 1,105.7 $ 744.2 (1) Standby letters of credit amounted to $153.1 million at April 30, 2020. (2) Includes additional amounts borrowed in March 2020 as a precautionary measure to provide increased liquidity and preserve financial flexibility in response to uncertainty resulting from the Pandemic. At April 30, 2020, we had borrowing capacity of $152.5 million, reflecting covenant restrictions. Term Loan Maturities During the three and six months ended April 30, 2020, we made principal payments under the term loan of $15.0 million and $30.0 million, respectively. As of April 30, 2020, the following principal payments are required under the term loan. (in millions) 2020 2021 2022 Debt maturities $ 30.0 $ 120.0 $ 560.0 Interest Rate Swaps We enter into interest rate swaps to manage the interest rate risk associated with our floating-rate, LIBOR-based borrowings. Under these arrangements, we typically pay a fixed interest rate in exchange for LIBOR-based variable interest throughout the life of the agreement. We initially report the mark-to-market gain or loss on a derivative as a component of AOCL and subsequently reclassify the gain or loss into earnings when the hedged transactions occur and affect earnings. Interest payables and receivables under the swap agreements are accrued and recorded as adjustments to interest expense. All of our interest rate swaps have been designated and accounted for as cash flow hedges from inception. See Note 7, “Fair Value of Financial Instruments,” regarding the valuation of our interest rate swaps. Notional Amount Fixed Interest Rate Effective Date Maturity Date $ 90.0 million 2.83% November 1, 2018 April 30, 2021 $ 90.0 million 2.84% November 1, 2018 October 31, 2021 $ 130.0 million 2.86% November 1, 2018 April 30, 2022 $ 130.0 million 2.84% November 1, 2018 September 1, 2022 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Apr. 30, 2020 | |
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 April 30, 2020, these letters of credit and surety bonds totaled $153.1 million and $575.9 million, respectively. Guarantees In some instances, we offer clients guaranteed energy savings under certain energy savings contracts. At April 30, 2020, total guarantees were $183.6 million and extend through 2039. We accrue for the estimated cost of guarantees when it is probable that a liability has been incurred and the amount can be reasonably estimated. Historically, we have not incurred any material losses in connection with these guarantees. In connection with an unconsolidated joint venture in which one of our subsidiaries has a 33% ownership interest, that subsidiary and the other joint venture partners have each jointly and severally guaranteed the obligations of the joint venture to perform under certain contracts extending through 2024. Annual revenues relating to the underlying contracts are approximately $41 million. Should the joint venture be unable to perform under these contracts, the joint venture partners would be jointly and severally liable for any losses incurred by the client due to the failure to perform. Sales Tax Audits We collect sales tax from clients and remit those collections to the applicable states. When clients fail to pay their invoices, including the amount of any sales tax that we paid on their behalf, in some cases we are 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, and these states 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 April 30, 2020, the total amount accrued for all probable litigation losses where a reasonable estimate of the loss could be made was $6.8 million. 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. 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 $12 million. Factors underlying this estimated range of loss may change from time to time, and actual results may vary significantly from this estimate. 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. While the results of these lawsuits, claims, and proceedings cannot be predicted with any certainty, our management believes that the final outcome of these matters will not have a material adverse effect on our financial position, results of operations, or cash flows. Certain Legal Proceedings In determining whether to include any particular lawsuit or other proceeding in our disclosure below, 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. The Consolidated Cases of Bucio and Martinez v. ABM Janitorial Services filed on April 7, 2006, pending in the Superior Court of California, County of San Francisco (the “Bucio case”) The Bucio case is a class action pending in San Francisco Superior Court that alleges we failed to provide legally required meal periods and make additional premium payments for such meal periods, pay split shift premiums when owed, and reimburse janitors for travel expenses. There is also a claim for penalties under the California Labor Code Private Attorneys General Act (“PAGA”). On April 19, 2011, the trial court held a hearing on plaintiffs’ motion to certify the class. At the conclusion of that hearing, the trial court denied plaintiffs’ motion to certify the class. On May 11, 2011, the plaintiffs filed a motion to reconsider, which was denied. The plaintiffs appealed the class certification issues. The trial court stayed the underlying lawsuit pending the decision in the appeal. The Court of Appeal of the State of California, First Appellate District (the “Court of Appeal”), heard oral arguments on November 7, 2017. On December 11, 2017, the Court of Appeal reversed the trial court’s order denying class certification and remanded the matter for certification of a meal period, travel expense reimbursement, and split shift class. The case was remitted to the trial court for further proceedings on class certification, discovery, dispositive motions, and trial. |
Common Stock
Common Stock | 6 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Common Stock | COMMON STOCK Effective December 18, 2019, our Board of Directors replaced our then-existing share repurchase program with a new share repurchase program under which we may repurchase up to $150.0 million of our common stock (the “2019 Share Repurchase Program”). We repurchased shares under the 2019 Share Repurchase Program during the second quarter of 2020, as summarized below. However, due to the market and business conditions arising from the Pandemic, in March 2020 we suspended further repurchases of our common stock. At April 30, 2020, authorization for $144.9 million of repurchases remained under the 2019 Share Repurchase Program. Repurchase Activity Three and Six Months Ended (in millions, except per share amounts) April 30, 2020 Total number of shares purchased 0.2 Average price paid per share $ 36.16 Total cash paid for share repurchases $ 5.1 |
Income Taxes
Income Taxes | 6 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our quarterly tax provision is calculated using an estimated annual tax rate that is adjusted for discrete items occurring during the period to arrive at our effective tax rate. During the three and six months ended April 30, 2020, we had effective tax rates of (8.4)% and (21.4)%, respectively, resulting in provisions for taxes of $10.6 million and $19.2 million, respectively. During the three and six months ended April 30, 2019, we had effective tax rates of 29.6% and 28.7%, respectively, resulting in provisions for taxes of $12.6 million and $17.3 million, respectively. Our effective tax rate for the three months ended April 30, 2020 was impacted by the impairment of non-deductible goodwill. Our effective tax rate for the three months ended April 30, 2019 was impacted by a $1.3 million provision related to hiring credits, including the Work Opportunity Tax Credit (“WOTC”). Our effective tax rate for the six months ended April 30, 2020 was impacted by the impairment of non-deductible goodwill and a $1.5 million tax provision related to WOTC. Our effective tax rate for the six months ended April 30, 2019 was impacted by the following discrete items: a $1.4 million provision related to hiring credits, including WOTC, and a $1.4 million provision related to certain reserves. In response to COVID-19, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) on March 27, 2020. The CARES Act provides various stimulus measures, including several tax provisions. Among the business tax provisions is the creation of a refundable credit for employee retention and the deferral of certain payroll tax remittances through December 31, 2020 to future years (with 50% of the deferred amount due by December 31, 2021 and the remaining 50% due by December 31, 2022). We evaluated the impact of the CARES Act and determined that as of and for the three and six months ended April 30, 2020, the CARES Act did not have a material impact on our unaudited consolidated financial statements. However, the deferral of certain payroll tax remittances may have a material impact on our financial statements in future periods. We continue planning 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 result of the Tax Cuts and Jobs Act of 2017, no deferred tax liabilities with respect to federal and state income taxes or foreign withholding taxes have been recognized. |
Segment Information
Segment Information | 6 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our current reportable segments consist of B&I, T&M, Aviation, Education, and Technical Solutions, as further described below. Refer to Note 2, “Basis of Presentation and Significant Accounting Policies,” for information related to the reorganization of our Healthcare business into our other industry groups, primarily B&I, during the third quarter of 2019. REPORTABLE SEGMENTS AND DESCRIPTIONS B&I B&I, our largest reportable segment, encompasses janitorial, facilities services, and parking services for commercial real estate properties, 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. T&M T&M provides janitorial, facilities services, and parking services to industrial and high-tech manufacturing facilities. Aviation Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. Education Education delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges, and universities. Technical Solutions Technical Solutions specializes in mechanical and electrical services. 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 April 30, Six Months Ended April 30, (in millions) 2020 2019 2020 2019 Revenues Business & Industry $ 785.6 $ 807.7 $ 1,606.5 $ 1,636.6 Technology & Manufacturing 233.7 224.3 467.6 460.4 Aviation 184.7 250.0 423.5 502.4 Education 200.1 209.3 408.0 418.2 Technical Solutions 122.3 135.9 264.3 252.0 Elimination of inter-segment revenues (30.4) (32.6) (61.0) (67.0) $ 1,496.0 $ 1,594.7 $ 3,109.0 $ 3,202.6 Operating (loss) profit Business & Industry $ 59.2 $ 49.2 $ 97.4 $ 86.0 Technology & Manufacturing 19.7 19.2 36.3 37.4 Aviation (1) (60.5) 4.8 (54.9) 8.7 Education (2) (85.8) 10.5 (74.6) 20.8 Technical Solutions (3) (8.4) 10.6 (0.1) 17.3 Government Services — — — (0.1) Corporate (39.5) (38.9) (72.8) (83.6) Adjustment for income from unconsolidated affiliates, included in Aviation (0.9) (0.8) (1.8) (1.7) Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.4) — (0.4) — (116.7) 54.5 (70.8) 84.8 Income from unconsolidated affiliates 0.9 0.8 1.8 1.7 Interest expense (10.5) (12.8) (20.7) (26.3) (Loss) income from continuing operations before income taxes $ (126.2) $ 42.5 $ (89.7) $ 60.2 (1) Reflects impairment charges totaling $61.1 million on goodwill and intangible assets during the three and six months ended April 30, 2020. (2) Reflects impairment charges totaling $99.3 million on goodwill during the three and six months ended April 30, 2020. (3) Reflects impairment charges totaling $12.4 million on goodwill and intangible assets during the three and six months ended April 30, 2020. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
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, 2019 (“Annual Report”). Unless otherwise indicated, all references to years are to our fiscal years, which end on October 31. |
Prior Year Reclassifications | During the third quarter of 2019, we made changes to our operating structure to better align the services and expertise of our Healthcare business with our other industry groups, allowing us to leverage our existing branch network to support the long-term growth of this business. As a result, our former Healthcare portfolio is now included primarily in our Business & Industry segment. Our prior period segment data in Note 13, “Segment Information,” has been reclassified to conform with our current period presentation. This change had no impact on our previously reported consolidated financial statements. |
Discontinued Operations | Following the sale of our Security business in 2015, we record all costs associated with this former business in discontinued operations. Such costs generally relate to litigation we retained and insurance reserves. |
Management Reimbursement Revenue by Segment and Contracts with Customers | 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. |
Recently Adopted Accounting Standards | Our significant accounting policies are described in Note 2, “Basis of Presentation and Significant Accounting Policies,” in our Annual Report. There have been no material changes to our significant accounting policies during the six months ended April 30, 2020, other than as described below. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) . Since the release of ASU 2016-02, the FASB issued the following additional ASUs further updating Topic 842: • In January 2018, ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842 • In July 2018, ASU 2018-10, Codification Improvements to Topic 842 • In July 2018, ASU 2018-11, Leases (Topic 842): Targeted Improvements • In March 2019, ASU 2019-01, Leases (Topic 842): Codification Improvements Topic 842 replaced existing lease accounting guidance and is intended to provide enhanced transparency and comparability by requiring lessees to record most leases on the balance sheet. Under Topic 842, lessees are required to record on the balance sheet right-of-use (“ROU”) assets (the right to use an underlying asset for the lease term) and the corresponding lease liabilities (the obligation to make lease payments arising from the lease). The new guidance requires us to continue classifying leases as either operating or financing, with classification affecting the pattern of expense recognition in the Consolidated Statements of Comprehensive Income (Loss). In addition, the new standard requires enhanced disclosures surrounding the amount, timing, and uncertainty of cash flows arising from leasing arrangements. We adopted Topic 842 on November 1, 2019 on a modified retrospective basis using the optional transition method permitted under ASU 2018-11 and have used this effective date as the initial application date. Comparative prior period financial statements have not been restated and continue to be reported under the accounting standards in effect for those prior periods presented. Upon adoption, we elected the package of transition practical expedients that allowed us to carry forward prior conclusions related to: (i) whether any expired or existing contracts are or contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct costs for existing leases. Additionally, we elected the practical expedient of not separating lease components from non-lease components for all asset classes. We also made an accounting policy election to not record ROU assets or lease liabilities for leases with an initial term of 12 months or less and will recognize payments for such leases in our Consolidated Statements of Comprehensive Income (Loss) on a straight-line basis over the lease term. We did not elect the use of hindsight for determining the reasonably certain lease term. The adoption of Topic 842 had a significant impact on our unaudited Consolidated Balance Sheet, but did not have a significant impact on our unaudited Consolidated Statement of Comprehensive Income (Loss), our unaudited Consolidated Statement of Stockholders' Equity, our unaudited Consolidated Statement of Cash Flows, our liquidity, or our compliance with the various covenants contained within our credit facility, as further described in Note 9, “Credit Facility.” The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. See Note 4, “Leases,” for additional information on our lease arrangements. The impact of adoption of Topic 842 on our unaudited Consolidated Balance Sheet was as follows: (in millions) Balance at Adjustments Due Balance at ASSETS Right-of-use assets (1) $ — $ 167.5 $ 167.5 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of lease liabilities (2) $ — $ 36.3 $ 36.3 Other accrued liabilities (3) 158.2 (3.0) 155.2 Long-term lease liabilities (4) — 154.2 154.2 Other noncurrent liabilities (5) 78.8 (20.0) 58.8 (1) Represents capitalization of operating lease assets and reclassification of prepaid rent, deferred rent, lease exit impairment liabilities, and lease incentives and tenant improvements on operating leases. (2) Represents the recognition of short-term operating lease liabilities. (3) Represents short-term deferred rent reclassified to ROU assets. (4) Represents the recognition of long-term operating lease liabilities. (5) Represents long-term deferred rent, lease incentives and tenant improvements, and lease exit impairment liabilities reclassified to ROU assets. In April 2020, the FASB issued a question and answer document focused on the application of lease accounting guidance to lease concessions provided as a result of the Pandemic (the “Lease Modification Q&A”). The Lease Modification Q&A provides entities with the option to elect to account for lease concessions as though the enforceable rights and obligations existed in the original lease when the total cash flows resulting from the modified lease are substantially similar to the cash flows in the original lease. We have elected this practical |
Revenues | We have arrangements under various contract types, as described in Note 2, “Basis of Presentation and Significant Accounting Policies,” in our Annual Report. 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. 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; tag services; 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. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Management Reimbursement Revenue by Segment | These revenues and expenses are reported in equal amounts as costs reimbursed from our managed locations: Three Months Ended April 30, Six Months Ended April 30, (in millions) 2020 2019 2020 2019 Business & Industry $ 61.7 $ 69.3 $ 135.4 $ 140.3 Aviation 20.7 23.5 46.6 47.6 Total $ 82.4 $ 92.8 $ 182.0 $ 188.0 |
Schedule of New Accounting Pronouncements Impacts on Consolidated Financial Statements | The impact of adoption of Topic 842 on our unaudited Consolidated Balance Sheet was as follows: (in millions) Balance at Adjustments Due Balance at ASSETS Right-of-use assets (1) $ — $ 167.5 $ 167.5 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of lease liabilities (2) $ — $ 36.3 $ 36.3 Other accrued liabilities (3) 158.2 (3.0) 155.2 Long-term lease liabilities (4) — 154.2 154.2 Other noncurrent liabilities (5) 78.8 (20.0) 58.8 (1) Represents capitalization of operating lease assets and reclassification of prepaid rent, deferred rent, lease exit impairment liabilities, and lease incentives and tenant improvements on operating leases. (2) Represents the recognition of short-term operating lease liabilities. (3) Represents short-term deferred rent reclassified to ROU assets. (4) Represents the recognition of long-term operating lease liabilities. (5) Represents long-term deferred rent, lease incentives and tenant improvements, and lease exit impairment liabilities reclassified to ROU assets. |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Major Service Lines and Segments | Three Months Ended April 30, 2020 Six Months Ended April 30, 2020 (in millions) B&I T&M Aviation Education Technical Total B&I T&M Aviation Education Technical Total Janitorial (1) $ 597.0 $ 190.3 $ 31.9 $ 177.5 $ — $ 996.7 $ 1,190.5 $ 376.0 $ 66.7 $ 363.7 $ — $ 1,996.9 Parking (2) 97.1 7.4 71.3 0.6 — 176.4 222.9 15.5 156.3 1.4 — 396.1 Facility Services (3) 91.3 35.9 7.9 22.0 — 157.1 192.8 76.1 18.5 43.0 — 330.3 Building & Energy Solutions (4) — — — — 122.3 122.3 — — — — 264.3 264.3 Airline Services (5) 0.1 — 73.7 — — 73.8 0.3 — 182.0 — — 182.3 $ 785.6 $ 233.7 $ 184.7 $ 200.1 $ 122.3 $ 1,526.4 $ 1,606.5 $ 467.6 $ 423.5 $ 408.0 $ 264.3 $ 3,170.0 Elimination of inter-segment revenues (30.4) (61.0) Total $ 1,496.0 $ 3,109.0 Three Months Ended April 30, 2019 Six Months Ended April 30, 2019 (in millions) B&I T&M Aviation Education Technical Total B&I T&M Aviation Education Technical Total Janitorial (1) $ 576.3 $ 183.8 $ 31.1 $ 187.9 $ — $ 979.1 $ 1,160.2 $ 371.0 $ 63.0 $ 375.4 $ — $ 1,969.6 Parking (2) 125.7 5.9 84.3 0.8 — 216.7 253.8 13.3 170.1 1.6 — 438.8 Facility Services (3) 105.6 34.6 16.6 20.6 — 177.4 222.2 76.0 33.3 41.3 — 372.7 Building & Energy Solutions (4) — — — — 135.9 135.9 — — — — 252.0 252.0 Airline Services (5) 0.2 — 118.0 — — 118.2 0.4 0.1 236.1 — — 236.5 $ 807.7 $ 224.3 $ 250.0 $ 209.3 $ 135.9 $ 1,627.3 $ 1,636.6 $ 460.4 $ 502.4 $ 418.2 $ 252.0 $ 3,269.6 Elimination of inter-segment revenues (32.6) (67.0) Total $ 1,594.7 $ 3,202.6 (1) Janitorial arrangements provide a wide range of essential cleaning services for commercial office buildings, airports and other transportation centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, and stadiums and arenas. These arrangements are often structured as monthly fixed-price, square-foot, cost-plus, and tag services 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 tag services contracts. (4) Building & Energy Solutions arrangements provide custom energy solutions, electrical, HVAC, lighting, and other general maintenance and repair services for clients in the public and private sectors and are generally structured as Energy Savings and Fixed-Price Repair and Refurbishment contracts. We also franchise certain operations under franchise agreements relating to our Linc Network and TEGG brands, pursuant to franchise contracts. (5) Airline Services arrangements support airlines and airports with services such as passenger assistance, catering logistics, and airplane cabin maintenance. These arrangements are often structured as monthly fixed-price, cost-plus, transaction price, and hourly contracts. |
Contract with Customer, Asset and Liability | The following tables present the balances in our contract assets and contract liabilities: (in millions) April 30, 2020 October 31, 2019 Contract assets Billed trade receivables (1) $ 956.5 $ 978.7 Unbilled trade receivables (1) 30.6 56.9 Costs incurred in excess of amounts billed (2) 67.7 72.6 Capitalized commissions (3) 21.3 21.8 (1) Included in trade accounts receivable, net, on the consolidated balance sheets. The fluctuations correlate directly to the execution of new customer contracts and to invoicing and collections from customers in the normal course of business. (2) Fluctuation is primarily due to the timing of payments on our contracts measured using the cost-to-cost method of revenue recognition. (3) Included in other current assets and other noncurrent assets on the consolidated balance sheets. During the six months ended April 30, 2020, we capitalized $6.4 million of new costs and amortized $6.9 million o f previously capitalized costs. There was no impairment loss recorded on the costs capitalized. (in millions) Six Months Ended Contract liabilities (1) Balance at beginning of period $ 38.0 Additional contract liabilities 171.3 Recognition of deferred revenue (174.7) Balance at end of period $ 34.6 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | The components of lease assets and liabilities and their classification on our unaudited Consolidated Balance Sheets as of April 30, 2020 were as follows: Balance at (in millions) Classification April 30, 2020 Lease assets Operating leases Right-of-use assets $ 158.8 Finance leases Property, plant and equipment, net (1) 7.9 Total lease assets $ 166.7 Lease liabilities Current liabilities Operating leases Current portion of lease liabilities $ 36.0 Finance leases Other accrued liabilities 4.5 Noncurrent liabilities Operating leases Long-term lease liabilities 144.8 Finance leases Other noncurrent liabilities 1.3 Total lease liabilities $ 186.6 The following table includes the weighted-average remaining lease terms, in years, and the weighted-average discount rate used to calculate the present value of operating lease liabilities: As of April 30, 2020 Weighted-average remaining lease term (years) Operating leases 6.3 Finance leases 2.4 Weighted-average discount rate Operating leases 4.05 % Finance leases 4.42 % |
Lease, Cost | The components of lease costs and classification within the unaudited Consolidated Statements of Comprehensive Income (Loss) were as follows: Three Months Ended Six Months Ended (in millions) April 30, 2020 April 30, 2020 Operating lease costs: Operating expenses (1)(2) $ 17.1 $ 38.1 Selling, general and administrative expenses (3) 7.5 13.1 Finance lease costs: Operating expenses (4) 1.0 2.1 Interest expense (5) 0.2 0.3 Total lease costs $ 25.8 $ 53.6 (1) Related to certain parking arrangements. (2) Includes short-term lease costs and variable lease costs. (3) Includes short-term lease costs. (4) Represents amortization of leased assets. (5) Interest on lease liabilities. The following table presents information on short-term and variable lease costs: Three Months Ended Six Months Ended (in millions) April 30, 2020 April 30, 2020 Short-term lease costs $ 11.9 $ 26.4 Variable lease costs 1.0 3.0 Total short-term and variable lease costs $ 12.9 $ 29.4 The following table includes supplemental cash and non-cash information related to operating leases: Six Months Ended (in millions) April 30, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 23.9 Operating cash flows from finance leases 0.3 Financing cash flows from finance leases 1.5 Lease assets obtained in exchange for new operating lease liabilities (1) 10.0 |
Maturities of Operating Lease Liabilities | The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our unaudited Consolidated Balance Sheets as of April 30, 2020 are as follows: (in millions) Operating Finance Total Remainder of fiscal 2020 $ 22.0 $ 1.7 $ 23.7 Fiscal 2021 40.3 2.9 43.2 Fiscal 2022 33.9 1.5 35.4 Fiscal 2023 28.7 0.8 29.5 Fiscal 2024 23.3 — 23.3 Thereafter 59.0 — 59.0 Total lease payments 207.1 6.9 214.0 Less: imputed interest 26.3 1.1 27.4 Present value of lease liabilities $ 180.8 $ 5.8 $ 186.6 Future sublease rental income was excluded for the periods shown above, as the amounts are immaterial. As previously disclosed in our Annual Report, the amounts of minimum future commitments under non-cancelable operating and capital leases as of October 31, 2019 in accordance with Topic 840 were as follows: (in millions) Operating and Other (1) Capital Total Fiscal 2020 $ 42.8 $ 3.1 $ 45.9 Fiscal 2021 35.5 2.5 38.0 Fiscal 2022 30.3 1.3 31.6 Fiscal 2023 25.6 0.6 26.2 Fiscal 2024 20.5 — 20.5 Thereafter 51.8 — 51.8 Total (2) $ 206.5 $ 7.5 $ 214.0 (1) Includes total estimated sublease rental income of $15.8 million. |
Maturities of Finance Lease Liabilities | The amounts of future undiscounted cash flows related to the lease payments over the lease terms and the reconciliation to the present value of the lease liabilities as recorded on our unaudited Consolidated Balance Sheets as of April 30, 2020 are as follows: (in millions) Operating Finance Total Remainder of fiscal 2020 $ 22.0 $ 1.7 $ 23.7 Fiscal 2021 40.3 2.9 43.2 Fiscal 2022 33.9 1.5 35.4 Fiscal 2023 28.7 0.8 29.5 Fiscal 2024 23.3 — 23.3 Thereafter 59.0 — 59.0 Total lease payments 207.1 6.9 214.0 Less: imputed interest 26.3 1.1 27.4 Present value of lease liabilities $ 180.8 $ 5.8 $ 186.6 Future sublease rental income was excluded for the periods shown above, as the amounts are immaterial. As previously disclosed in our Annual Report, the amounts of minimum future commitments under non-cancelable operating and capital leases as of October 31, 2019 in accordance with Topic 840 were as follows: (in millions) Operating and Other (1) Capital Total Fiscal 2020 $ 42.8 $ 3.1 $ 45.9 Fiscal 2021 35.5 2.5 38.0 Fiscal 2022 30.3 1.3 31.6 Fiscal 2023 25.6 0.6 26.2 Fiscal 2024 20.5 — 20.5 Thereafter 51.8 — 51.8 Total (2) $ 206.5 $ 7.5 $ 214.0 (1) Includes total estimated sublease rental income of $15.8 million. |
Restructuring and Related Cos_2
Restructuring and Related Costs (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Liabilities | Rollforward of Restructuring and Related Liabilities (in millions) Balance, Costs Recognized (1) Payments Non-Cash Items Balance, Employee severance $ 3.0 $ 0.2 $ (1.5) $ — $ 1.7 External support fees 0.5 1.4 (0.5) — 1.5 Other project fees 0.7 3.3 (3.9) (0.2) — Lease exit costs and asset impairment 2.7 — (0.2) (2.5) — Total $ 7.0 $ 5.0 $ (6.0) $ (2.7) $ 3.2 (1) We include these costs within corporate expenses. Cumulative Restructuring and Related Charges (in millions) External Support Fees Employee Severance Other Project Fees Lease Exit Costs Asset Impairment Total GCA and Other $ 4.9 $ 18.3 $ 15.7 $ 0.7 $ — $ 39.6 2020 Vision 30.0 13.0 10.7 7.7 5.2 66.5 Total $ 34.9 $ 31.2 $ 26.3 $ 8.4 $ 5.2 $ 106.1 |
Net (Loss) Income Per Common _2
Net (Loss) Income Per Common Share (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Common Share Calculations | Basic and Diluted Net (Loss) Income Per Common Share Calculations Three Months Ended April 30, Six Months Ended April 30, (in millions, except per share amounts) 2020 2019 2020 2019 (Loss) income from continuing operations $ (136.8) $ 29.9 $ (108.9) $ 42.9 (Loss) income from discontinued operations, net of — (0.2) 0.1 (0.2) Net (loss) income $ (136.8) $ 29.7 $ (108.8) $ 42.7 Weighted-average common and common 66.9 66.5 66.9 66.4 Effect of dilutive securities (1) Restricted stock units — 0.2 — 0.2 Stock options — 0.1 — 0.1 Weighted-average common and common 66.9 66.8 66.9 66.7 Net (loss) income per common share — Basic (Loss) income from continuing operations $ (2.05) $ 0.45 $ (1.63) $ 0.65 (Loss) income from discontinued operations — — — — Net (loss) income $ (2.05) $ 0.45 $ (1.63) $ 0.64 Net (loss) income per common share — Diluted (Loss) income from continuing operations $ (2.05) $ 0.45 $ (1.63) $ 0.64 (Loss) income from discontinued operations — — — — Net (loss) income $ (2.05) $ 0.45 $ (1.63) $ 0.64 |
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 April 30, Six Months Ended April 30, (in millions) 2020 2019 2020 2019 Anti-dilutive 0.8 0.3 0.6 0.3 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
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 April 30, 2020 October 31, 2019 Cash and cash equivalents (1) 1 $ 555.9 $ 58.5 Insurance deposits (2) 1 0.7 0.8 Assets held in funded deferred compensation plan (3) 1 2.3 2.5 Credit facility (4) 2 1,198.6 808.4 Interest rate swap liabilities (5) 2 21.2 14.6 Investments in auction rate securities (6) 3 — 5.0 (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 8, “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 syndicated line of credit and term loan. Due to variable interest rates, the carrying value of outstanding borrowings under our line of credit and term loan approximates the fair value. See Note 9, “Credit Facility,” 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 London Interbank Offered Rate (“LIBOR”) forward rates at the end of the period. At April 30, 2020 and October 31, 2019, our interest rate swaps are included in “Other noncurrent liabilities” on the accompanying unaudited Consolidated Balance Sheets. See Note 9, “Credit Facility,” for further information. (6) The fair value of investments in auction rate securities is based on discounted cash flow valuation models, primarily utilizing unobservable inputs, including assumptions about the underlying collateral, credit risks associated with the issuer, credit enhancements associated with financial insurance guarantees, and the possibility of the security being re-financed by the issuer or having a successful auction. At October 31, 2019 we held an investment in one auction rate security that had an original principal amount, amortized cost, and fair value of $5.0 million that was included in “Other investments” on the accompanying unaudited Consolidated Balance Sheets. During the first quarter of 2020, this auction rate security was called by the issuer, and we received proceeds for the fair value of this debt instrument of $5.0 million. There were no unrealized gains or losses on this auction rate security included in accumulated other comprehensive loss (“AOCL”). At April 30, 2020 we had no investments in auction rate securities. |
Significant Assumptions Used to Determine Fair Value of Auction Rate Securities | The discount rates utilized in the income approach valuation method are summarized in the table below. Discount Education 10.0% Aviation 10.5% Technical Solutions 11.0% |
Insurance (Tables)
Insurance (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Insurance [Abstract] | |
Schedule of Insurance Related Balances and Activity | Insurance Related Balances and Activity (in millions) April 30, 2020 October 31, 2019 Insurance claim reserves, excluding medical and dental $ 518.2 $ 507.8 Medical and dental claim reserves 14.9 7.2 Insurance recoverables 64.5 64.5 |
Schedule of Instruments Used to Collateralize Insurance Obligations | Instruments Used to Collateralize Our Insurance Obligations (in millions) April 30, 2020 October 31, 2019 Standby letters of credit $ 143.6 $ 141.0 Surety bonds 85.4 90.8 Restricted insurance deposits 0.7 0.8 Total $ 229.7 $ 232.6 |
Credit Facility (Tables)
Credit Facility (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Facility Information | Credit Facility Information (in millions) April 30, 2020 October 31, 2019 Current portion of long-term debt Gross term loan $ 90.0 $ 60.0 Unamortized deferred financing costs (2.6) (2.8) Current portion of term loan $ 87.4 $ 57.2 Long-term debt Gross term loan $ 620.0 $ 680.0 Unamortized deferred financing costs (2.9) (4.1) Total noncurrent portion of term loan 617.1 675.9 Revolving line of credit (1)(2) 488.6 68.4 Long-term debt $ 1,105.7 $ 744.2 (1) Standby letters of credit amounted to $153.1 million at April 30, 2020. |
Schedule of Term Loan Maturities | As of April 30, 2020, the following principal payments are required under the term loan. (in millions) 2020 2021 2022 Debt maturities $ 30.0 $ 120.0 $ 560.0 |
Schedule of Interest Rate Swap Information | Notional Amount Fixed Interest Rate Effective Date Maturity Date $ 90.0 million 2.83% November 1, 2018 April 30, 2021 $ 90.0 million 2.84% November 1, 2018 October 31, 2021 $ 130.0 million 2.86% November 1, 2018 April 30, 2022 $ 130.0 million 2.84% November 1, 2018 September 1, 2022 |
Common Stock (Tables)
Common Stock (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Equity [Abstract] | |
Schedule of Share Repurchase Activity | Repurchase Activity Three and Six Months Ended (in millions, except per share amounts) April 30, 2020 Total number of shares purchased 0.2 Average price paid per share $ 36.16 Total cash paid for share repurchases $ 5.1 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Segment | Our current reportable segments consist of B&I, T&M, Aviation, Education, and Technical Solutions, as further described below. Refer to Note 2, “Basis of Presentation and Significant Accounting Policies,” for information related to the reorganization of our Healthcare business into our other industry groups, primarily B&I, during the third quarter of 2019. REPORTABLE SEGMENTS AND DESCRIPTIONS B&I B&I, our largest reportable segment, encompasses janitorial, facilities services, and parking services for commercial real estate properties, 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. T&M T&M provides janitorial, facilities services, and parking services to industrial and high-tech manufacturing facilities. Aviation Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation. Education Education delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges, and universities. Technical Solutions Technical Solutions specializes in mechanical and electrical services. 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 April 30, Six Months Ended April 30, (in millions) 2020 2019 2020 2019 Revenues Business & Industry $ 785.6 $ 807.7 $ 1,606.5 $ 1,636.6 Technology & Manufacturing 233.7 224.3 467.6 460.4 Aviation 184.7 250.0 423.5 502.4 Education 200.1 209.3 408.0 418.2 Technical Solutions 122.3 135.9 264.3 252.0 Elimination of inter-segment revenues (30.4) (32.6) (61.0) (67.0) $ 1,496.0 $ 1,594.7 $ 3,109.0 $ 3,202.6 Operating (loss) profit Business & Industry $ 59.2 $ 49.2 $ 97.4 $ 86.0 Technology & Manufacturing 19.7 19.2 36.3 37.4 Aviation (1) (60.5) 4.8 (54.9) 8.7 Education (2) (85.8) 10.5 (74.6) 20.8 Technical Solutions (3) (8.4) 10.6 (0.1) 17.3 Government Services — — — (0.1) Corporate (39.5) (38.9) (72.8) (83.6) Adjustment for income from unconsolidated affiliates, included in Aviation (0.9) (0.8) (1.8) (1.7) Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions (0.4) — (0.4) — (116.7) 54.5 (70.8) 84.8 Income from unconsolidated affiliates 0.9 0.8 1.8 1.7 Interest expense (10.5) (12.8) (20.7) (26.3) (Loss) income from continuing operations before income taxes $ (126.2) $ 42.5 $ (89.7) $ 60.2 (1) Reflects impairment charges totaling $61.1 million on goodwill and intangible assets during the three and six months ended April 30, 2020. (2) Reflects impairment charges totaling $99.3 million on goodwill during the three and six months ended April 30, 2020. (3) Reflects impairment charges totaling $12.4 million on goodwill and intangible assets during the three and six months ended April 30, 2020. |
The Company and Nature of Ope_2
The Company and Nature of Operations - Narrative (Details) | 6 Months Ended |
Apr. 30, 2020segmentindustry_group | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of industry groups | industry_group | 4 |
Number of technical solutions segments | segment | 1 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Oct. 31, 2019 |
Unusual or Infrequent Item, or Both [Line Items] | ||
Accrued compensation | $ 152 | $ 189.3 |
Pandemic | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Accrued compensation | $ 0.4 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Management Reimbursement Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Parking facility management fee revenue | $ 1,496 | $ 1,594.7 | $ 3,109 | $ 3,202.6 |
Management Reimbursement Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Parking facility management fee revenue | 82.4 | 92.8 | 182 | 188 |
Management Reimbursement Revenue | Business & Industry | ||||
Segment Reporting Information [Line Items] | ||||
Parking facility management fee revenue | 61.7 | 69.3 | 135.4 | 140.3 |
Management Reimbursement Revenue | Aviation | ||||
Segment Reporting Information [Line Items] | ||||
Parking facility management fee revenue | $ 20.7 | $ 23.5 | $ 46.6 | $ 47.6 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Impact of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Nov. 01, 2019 | Oct. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets | $ 158.8 | $ 167.5 | |
Current portion of lease liabilities | 36 | 36.3 | |
Other accrued liabilities | 158.6 | 155.2 | $ 158.2 |
Long-term lease liabilities | 144.8 | 154.2 | |
Other noncurrent liabilities | $ 77.5 | 58.8 | $ 78.8 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets | 167.5 | ||
Current portion of lease liabilities | 36.3 | ||
Other accrued liabilities | (3) | ||
Long-term lease liabilities | 154.2 | ||
Other noncurrent liabilities | $ (20) |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 1,496 | $ 1,594.7 | $ 3,109 | $ 3,202.6 |
Operating Segments | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 1,526.4 | 1,627.3 | 3,170 | 3,269.6 |
Operating Segments | Business & Industry | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 785.6 | 807.7 | 1,606.5 | 1,636.6 |
Operating Segments | Technology & Manufacturing | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 233.7 | 224.3 | 467.6 | 460.4 |
Operating Segments | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 184.7 | 250 | 423.5 | 502.4 |
Operating Segments | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 200.1 | 209.3 | 408 | 418.2 |
Operating Segments | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 122.3 | 135.9 | 264.3 | 252 |
Operating Segments | Janitorial | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 996.7 | 979.1 | 1,996.9 | 1,969.6 |
Operating Segments | Janitorial | Business & Industry | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 597 | 576.3 | 1,190.5 | 1,160.2 |
Operating Segments | Janitorial | Technology & Manufacturing | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 190.3 | 183.8 | 376 | 371 |
Operating Segments | Janitorial | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 31.9 | 31.1 | 66.7 | 63 |
Operating Segments | Janitorial | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 177.5 | 187.9 | 363.7 | 375.4 |
Operating Segments | Janitorial | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Parking | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 176.4 | 216.7 | 396.1 | 438.8 |
Operating Segments | Parking | Business & Industry | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 97.1 | 125.7 | 222.9 | 253.8 |
Operating Segments | Parking | Technology & Manufacturing | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 7.4 | 5.9 | 15.5 | 13.3 |
Operating Segments | Parking | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 71.3 | 84.3 | 156.3 | 170.1 |
Operating Segments | Parking | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0.6 | 0.8 | 1.4 | 1.6 |
Operating Segments | Parking | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Facility Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 157.1 | 177.4 | 330.3 | 372.7 |
Operating Segments | Facility Services | Business & Industry | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 91.3 | 105.6 | 192.8 | 222.2 |
Operating Segments | Facility Services | Technology & Manufacturing | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 35.9 | 34.6 | 76.1 | 76 |
Operating Segments | Facility Services | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 7.9 | 16.6 | 18.5 | 33.3 |
Operating Segments | Facility Services | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 22 | 20.6 | 43 | 41.3 |
Operating Segments | Facility Services | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Building & Energy Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 122.3 | 135.9 | 264.3 | 252 |
Operating Segments | Building & Energy Solutions | Business & Industry | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Building & Energy Solutions | Technology & Manufacturing | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Building & Energy Solutions | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Building & Energy Solutions | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Building & Energy Solutions | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 122.3 | 135.9 | 264.3 | 252 |
Operating Segments | Airline Services | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 73.8 | 118.2 | 182.3 | 236.5 |
Operating Segments | Airline Services | Business & Industry | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0.1 | 0.2 | 0.3 | 0.4 |
Operating Segments | Airline Services | Technology & Manufacturing | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0.1 |
Operating Segments | Airline Services | Aviation | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 73.7 | 118 | 182 | 236.1 |
Operating Segments | Airline Services | Education | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Operating Segments | Airline Services | Technical Solutions | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ (30.4) | $ (32.6) | $ (61) | $ (67) |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligations Narrative (Details) $ in Millions | Apr. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 173 |
Revenue, remaining performance obligation, percentage | 82.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 12 months |
Revenues - Contract with Custom
Revenues - Contract with Customer, Asset and Liability (Details) - USD ($) | 6 Months Ended | |
Apr. 30, 2020 | Oct. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Billed trade receivables | $ 956,500,000 | $ 978,700,000 |
Unbilled trade receivables | 30,600,000 | 56,900,000 |
Costs incurred in excess of amounts billed | 67,700,000 | 72,600,000 |
Capitalized commissions | 21,300,000 | $ 21,800,000 |
Capitalized contract price | 6,400,000 | |
Capitalized contract cost, amortization | (6,900,000) | |
Capitalized contract cost, impairment loss | 0 | |
Contract with Customer, Liabilities [Roll Forward] | ||
Contract liabilities, balance at beginning of period | 38,000,000 | |
Additional contract liabilities | 171,300,000 | |
Recognition of deferred revenue | (174,700,000) | |
Contract liabilities, balance at end of period | $ 34,600,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Apr. 30, 2020 | Apr. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Lease, Cost | $ 25.8 | $ 53.6 |
Operating lease, cost | 24.6 | 51.2 |
Finance lease, cost | $ 1.2 | $ 2.4 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 30 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Nov. 01, 2019 |
Lease assets | ||
Operating lease, right-of-use asset | $ 158.8 | $ 167.5 |
Finance lease, right-of-use asset | 7.9 | |
Total lease assets | 166.7 | |
Current liabilities | ||
Operating leases | 36 | 36.3 |
Finance leases | 4.5 | |
Noncurrent liabilities | ||
Operating leases | 144.8 | $ 154.2 |
Finance leases | 1.3 | |
Total lease liabilities | 186.6 | |
Finance leases, accumulated depreciation | $ 12.2 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Apr. 30, 2020 | Apr. 30, 2020 | |
Operating lease costs: | ||
Operating lease, cost | $ 24.6 | $ 51.2 |
Finance lease costs: | ||
Operating expenses(4) | 1 | 2.1 |
Interest expense(5) | 0.2 | 0.3 |
Total lease costs | 25.8 | 53.6 |
Short-term lease costs | 11.9 | 26.4 |
Variable lease costs | 1 | 3 |
Total short-term and variable lease costs | 12.9 | 29.4 |
Operating expenses(1)(2) | ||
Operating lease costs: | ||
Operating lease, cost | 17.1 | 38.1 |
Selling, general and administrative expenses(3) | ||
Operating lease costs: | ||
Operating lease, cost | $ 7.5 | $ 13.1 |
Leases - Maturities of Operatin
Leases - Maturities of Operating and Finance Lease Liabilities After Adoption of 842 (Details) $ in Millions | Apr. 30, 2020USD ($) |
Operating Lease Liabilities | |
Remainder of fiscal 2020 | $ 22 |
Fiscal 2021 | 40.3 |
Fiscal 2022 | 33.9 |
Fiscal 2023 | 28.7 |
Fiscal 2024 | 23.3 |
Thereafter | 59 |
Total operating lease payments | 207.1 |
Less: imputed interest | 26.3 |
Present value of operating lease liabilities | 180.8 |
Finance Lease Liabilities | |
Remainder of fiscal 2020 | 1.7 |
Fiscal 2021 | 2.9 |
Fiscal 2022 | 1.5 |
Fiscal 2023 | 0.8 |
Fiscal 2024 | 0 |
Thereafter | 0 |
Total finance lease payments | 6.9 |
Less: imputed interest | 1.1 |
Present value of finance lease liabilities | 5.8 |
Total | |
Remainder of fiscal 2020 | 23.7 |
Fiscal 2021 | 43.2 |
Fiscal 2022 | 35.4 |
Fiscal 2023 | 29.5 |
Fiscal 2024 | 23.3 |
Thereafter | 59 |
Total lease payments | 214 |
Less: imputed interest | 27.4 |
Present value of lease liabilities | $ 186.6 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Apr. 30, 2020 |
Weighted-average remaining lease term (years) | |
Operating leases | 6 years 3 months 18 days |
Finance leases | 2 years 4 months 24 days |
Weighted-average discount rate | |
Operating leases | 4.05% |
Finance leases | 4.42% |
Leases - Supplemental Cash and
Leases - Supplemental Cash and Non-cash Information (Details) $ in Millions | 6 Months Ended |
Apr. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 23.9 |
Operating cash flows from finance leases | 0.3 |
Financing cash flows from finance leases | 1.5 |
Lease assets obtained in exchange for new operating lease liabilities(1) | $ 10 |
Leases - Maturities of Operat_2
Leases - Maturities of Operating and Finance Lease Liabilities Before Adoption of 842 (Details) $ in Millions | Oct. 31, 2019USD ($) |
Operating and Other | |
Fiscal 2020 | $ 42.8 |
Fiscal 2021 | 35.5 |
Fiscal 2022 | 30.3 |
Fiscal 2023 | 25.6 |
Fiscal 2024 | 20.5 |
Thereafter | 51.8 |
Operating and other leases total | 206.5 |
Capital | |
Fiscal 2020 | 3.1 |
Fiscal 2021 | 2.5 |
Fiscal 2022 | 1.3 |
Fiscal 2023 | 0.6 |
Fiscal 2024 | 0 |
Thereafter | 0 |
Total capital leases | 7.5 |
Total | |
Fiscal 2020 | 45.9 |
Fiscal 2021 | 38 |
Fiscal 2022 | 31.6 |
Fiscal 2023 | 26.2 |
Fiscal 2024 | 20.5 |
Thereafter | 51.8 |
Total(2) | 214 |
Sublease rental income | $ 15.8 |
Restructuring and Related Cos_3
Restructuring and Related Costs - Narrative (Details) $ in Millions | Apr. 30, 2020USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | $ 106.1 |
2020 Vision Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | $ 66.5 |
Restructuring and Related Cos_4
Restructuring and Related Costs - Restructuring and Related Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | $ 7 | |||
Costs Recognized | $ 1.8 | $ 2.7 | 5 | $ 6.5 |
Payments | (6) | |||
Non-Cash Items | (2.7) | |||
Balance, end of period | 3.2 | 3.2 | ||
Employee severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 3 | |||
Costs Recognized | 0.2 | |||
Payments | (1.5) | |||
Non-Cash Items | 0 | |||
Balance, end of period | 1.7 | 1.7 | ||
External support fees | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 0.5 | |||
Costs Recognized | 1.4 | |||
Payments | (0.5) | |||
Non-Cash Items | 0 | |||
Balance, end of period | 1.5 | 1.5 | ||
Other project fees | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 0.7 | |||
Costs Recognized | 3.3 | |||
Payments | (3.9) | |||
Non-Cash Items | (0.2) | |||
Balance, end of period | 0 | 0 | ||
Lease exit costs and asset impairment | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, beginning of period | 2.7 | |||
Costs Recognized | 0 | |||
Payments | (0.2) | |||
Non-Cash Items | (2.5) | |||
Balance, end of period | $ 0 | $ 0 |
Restructuring and Related Cos_5
Restructuring and Related Costs - Cumulative Restructuring and Related Charges (Details) $ in Millions | Apr. 30, 2020USD ($) |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | $ 106.1 |
GCA and Other Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 39.6 |
2020 Vision Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 66.5 |
External Support Fees | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 34.9 |
External Support Fees | GCA and Other Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 4.9 |
External Support Fees | 2020 Vision Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 30 |
Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 31.2 |
Employee Severance | GCA and Other Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 18.3 |
Employee Severance | 2020 Vision Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 13 |
Other Project Fees | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 26.3 |
Other Project Fees | GCA and Other Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 15.7 |
Other Project Fees | 2020 Vision Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 10.7 |
Lease Exit Costs | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 8.4 |
Lease Exit Costs | GCA and Other Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 0.7 |
Lease Exit Costs | 2020 Vision Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 7.7 |
Asset Impairment | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 5.2 |
Asset Impairment | GCA and Other Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | 0 |
Asset Impairment | 2020 Vision Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative charges | $ 5.2 |
Net (Loss) Income Per Common _3
Net (Loss) 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 | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
(Loss) income from continuing operations | $ (136.8) | $ 29.9 | $ (108.9) | $ 42.9 |
(Loss) income from discontinued operations, net of taxes | 0 | (0.2) | 0.1 | (0.2) |
Net (loss) income | $ (136.8) | $ 29.7 | $ (108.8) | $ 42.7 |
Weighted-average common and common equivalent shares outstanding — Basic (in shares) | 66.9 | 66.5 | 66.9 | 66.4 |
Effect of dilutive securities(1) | ||||
Weighted-average common and common equivalent shares outstanding — Diluted (in shares) | 66.9 | 66.8 | 66.9 | 66.7 |
Net (loss) income per common share — Basic | ||||
(Loss) income from continuing operations (in usd per share) | $ (2.05) | $ 0.45 | $ (1.63) | $ 0.65 |
(Loss) income from discontinued operations (in usd per share) | 0 | 0 | 0 | 0 |
Net (loss) income (in usd per share) | (2.05) | 0.45 | (1.63) | 0.64 |
Net (loss) income per common share — Diluted | ||||
(Loss) income from continuing operations (in usd per share) | (2.05) | 0.45 | (1.63) | 0.64 |
(Loss) income from discontinued operations (in usd per share) | 0 | 0 | 0 | 0 |
Net (loss) income (in usd per share) | $ (2.05) | $ 0.45 | $ (1.63) | $ 0.64 |
Restricted stock units | ||||
Effect of dilutive securities(1) | ||||
Effect of dilutive securities (in shares) | 0 | 0.2 | 0 | 0.2 |
Stock options | ||||
Effect of dilutive securities(1) | ||||
Effect of dilutive securities (in shares) | 0 | 0.1 | 0 | 0.1 |
Net (Loss) Income Per Common _4
Net (Loss) Income Per Common Share - Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive (in shares) | 0.8 | 0.3 | 0.6 | 0.3 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2020USD ($) | Apr. 30, 2020USD ($)Security | Apr. 30, 2019USD ($) | Oct. 31, 2019USD ($)Security | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proceeds from redemption of auction rate security | $ 5,000,000 | $ 0 | ||
Unrealized gain (loss) on auction rate securities | 0 | |||
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 | 555,900,000 | $ 58,500,000 | ||
Insurance deposits | 700,000 | 800,000 | ||
Assets held in funded deferred compensation plan | 2,300,000 | 2,500,000 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Credit facility | 1,198,600,000 | 808,400,000 | ||
Interest rate swap liabilities | 21,200,000 | 14,600,000 | ||
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in auction rate securities | 0 | 5,000,000 | ||
Investment in auction rate securities, fair value | $ 0 | 5,000,000 | ||
Auction Rate Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments in auction rate securities | $ 5,000,000 | |||
Number of auction rate securities | Security | 0 | 1 | ||
Investment in auction rate securities, fair value | $ 5,000,000 | |||
Proceeds from redemption of auction rate security | $ 5,000,000 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Discount Rate (Details) - Discount Rates | Apr. 30, 2020 |
Valuation, Income Approach | Education | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Reporting unit, measurement input | 0.100 |
Valuation, Income Approach | Aviation | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Reporting unit, measurement input | 0.105 |
Valuation, Income Approach | Technical Solutions | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Reporting unit, measurement input | 0.110 |
Valuation, Market Approach | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Reporting unit, measurement input | 0.150 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Apr. 30, 2020 | Apr. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill, impairment loss | $ 163.8 | $ 163.8 |
Education | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill, impairment loss | 99.3 | 99.3 |
Aviation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill, impairment loss | 55.5 | 55.5 |
Impairment of intangible assets | 5.6 | |
Impairment of intangible assets, gross | (13.8) | |
Impairment of intangible assets, accumulated amortization | 8.2 | |
Technical Solutions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill, impairment loss | $ 9 | 9 |
Impairment of intangible assets | 3.4 | |
Impairment of intangible assets, gross | (8.7) | |
Impairment of intangible assets, accumulated amortization | $ 5.3 |
Insurance - Narrative (Details)
Insurance - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jan. 31, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule of Other Liabilities [Line Items] | |||
Insurance policy coverage, general and automobile liability losses | $ 200 | ||
Insurance policy coverage, property damage | 75 | ||
Decrease in total reserve claims | $ 6.6 | 6.6 | |
Change in reserves for insurance claims | $ 5 | ||
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 | Apr. 30, 2020 | Oct. 31, 2019 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance recoverables | $ 64.5 | $ 64.5 |
Insurance claim reserves, excluding medical and dental | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance claim reserves | 518.2 | 507.8 |
Medical and dental claim reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Insurance claim reserves | $ 14.9 | $ 7.2 |
Insurance - Instruments Used to
Insurance - Instruments Used to Collateralize Insurance Obligations (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Oct. 31, 2019 |
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | $ 229.7 | $ 232.6 |
Standby letters of credit | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | 143.6 | 141 |
Surety bonds | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | 85.4 | 90.8 |
Restricted insurance deposits | ||
Letters Of Credit [Line Items] | ||
Instruments used to collateralize insurance obligations | $ 0.7 | $ 0.8 |
Credit Facility - Narrative (De
Credit Facility - Narrative (Details) | May 28, 2020USD ($) | Sep. 01, 2017USD ($) | Mar. 31, 2020USD ($) | Oct. 31, 2022 | Apr. 30, 2022 | Apr. 30, 2020 | Sep. 01, 2018USD ($) | Aug. 31, 2017USD ($) |
Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Proceeds from line of credit | $ 300,000,000 | |||||||
Prior Credit Facility | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, borrowing capacity | $ 800,000,000 | |||||||
Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, term | 5 years | |||||||
Weighted average interest rate | 2.99% | |||||||
Deferred financing costs | $ 18,700,000 | |||||||
Credit Facility | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, covenant, liquidity required, minimum | $ 250,000,000 | |||||||
Debt instrument, covenant, cash and cash equivalents, maximum | 250,000,000 | |||||||
Deferred financing costs | $ 4,600,000 | |||||||
Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Deferred financing costs | 5,200,000 | |||||||
Credit Facility | Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt instrument, face amount | 800,000,000 | |||||||
Deferred financing costs | 13,400,000 | |||||||
Credit Facility | Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, borrowing capacity | 900,000,000 | |||||||
Borrowing capacity after initial year of term | $ 800,000,000 | |||||||
Credit Facility | Standby Letters of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, borrowing capacity | 300,000,000 | |||||||
Credit Facility | Swing Line Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Line of credit facility, borrowing capacity | $ 75,000,000 | |||||||
Credit Facility | Minimum | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percentage on unused portion of the Facility | 0.20% | |||||||
Credit Facility | Minimum | Revolving Credit Facility | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percentage on unused portion of the Facility | 0.20% | |||||||
Credit Facility | Maximum | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Leverage ratio | 4 | |||||||
Fixed charge coverage ratio | 1.25 | |||||||
Credit Facility | Maximum | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percentage on unused portion of the Facility | 0.35% | |||||||
Credit Facility | Maximum | Revolving Credit Facility | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percentage on unused portion of the Facility | 0.45% | |||||||
Credit Facility | Eurodollar | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Credit Facility | Eurodollar | Minimum | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Credit Facility | Eurodollar | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | |||||||
Credit Facility | Eurodollar | Maximum | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 2.75% | |||||||
Credit Facility | Base Rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
Credit Facility | Base Rate | Minimum | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
Credit Facility | Base Rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Credit Facility | Base Rate | Maximum | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.75% |
Credit Facility - Credit Facili
Credit Facility - Credit Facility Information (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Oct. 31, 2019 |
Current portion of long-term debt | ||
Gross term loan | $ 90 | $ 60 |
Unamortized deferred financing costs | (2.6) | (2.8) |
Current portion of term loan | 87.4 | 57.2 |
Long-term debt | ||
Gross term loan | 620 | 680 |
Unamortized deferred financing costs | (2.9) | (4.1) |
Total noncurrent portion of term loan | 617.1 | 675.9 |
Line of credit | 488.6 | 68.4 |
Long-term debt | 1,105.7 | $ 744.2 |
Standby letters of credit | 153.1 | |
Borrowing capacity | $ 152.5 |
Credit Facility - Term Loan Mat
Credit Facility - Term Loan Maturities (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Apr. 30, 2020USD ($) | Apr. 30, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Debt instrument, periodic payment, principal | $ 15 | $ 30 |
Term Loan | ||
Term Loan Maturities | ||
Debt maturities, 2020 | 30 | 30 |
Debt maturities, 2021 | 120 | 120 |
Debt maturities, 2022 | $ 560 | $ 560 |
Credit Facility - Interest Rate
Credit Facility - Interest Rate Swaps (Details) | Nov. 01, 2018USD ($) |
Interest Rate Swap, Maturity April 30, 2021 | |
Line of Credit Facility [Line Items] | |
Notional Amount | $ 90,000,000 |
Fixed Interest Rate | 2.83% |
Interest Rate Swap, Maturity October 31, 2021 | |
Line of Credit Facility [Line Items] | |
Notional Amount | $ 90,000,000 |
Fixed Interest Rate | 2.84% |
Interest Rate Swap, Maturity April 30, 2022 | |
Line of Credit Facility [Line Items] | |
Notional Amount | $ 130,000,000 |
Fixed Interest Rate | 2.86% |
Interest Rate Swap, Maturity September 1, 2022 | |
Line of Credit Facility [Line Items] | |
Notional Amount | $ 130,000,000 |
Fixed Interest Rate | 2.84% |
Credit Facility - Interest Ra_2
Credit Facility - Interest Rate Swaps Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | |
Line of Credit Facility [Line Items] | |||||
Interest expense | $ 10.5 | $ 12.8 | $ 20.7 | $ 26.3 | |
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | (3.8) | (3.8) | |||
Tax to be reclassified during next 12 months | (1.3) | (1.3) | |||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||||
Line of Credit Facility [Line Items] | |||||
Net gains from cash flow hedges recorded in accumulated other comprehensive loss, net of tax | 5.2 | $ 2.2 | |||
Tax related to amounts in accumulated other comprehensive loss | 1.5 | $ 1.2 | |||
Interest expense | 1.2 | 1 | 2.4 | 2.1 | |
Interest expense, tax | $ 0.5 | $ 0.4 | $ 0.9 | $ 0.8 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Sep. 20, 2018subclass | Apr. 30, 2020USD ($) |
Loss Contingencies [Line Items] | ||
Standby letters of credit | $ 153,100,000 | |
Subsidiary ownership interest (in percent) | 33.00% | |
Surety Bonds | ||
Loss Contingencies [Line Items] | ||
Surety bonds | $ 575,900,000 | |
Energy Savings Contracts | ||
Loss Contingencies [Line Items] | ||
Guarantee obligation | 183,600,000 | |
Performance Guarantee | Joint Venture | ||
Loss Contingencies [Line Items] | ||
Total guarantees | 41,000,000 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Amount of reasonably possible loss | 0 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Amount of reasonably possible loss | 12,000,000 | |
Bucio | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Number Of Certified Subclasses | subclass | 4 | |
Pending Litigation | ||
Loss Contingencies [Line Items] | ||
Loss contingency amount accrued for probable losses | $ 6,800,000 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - 2019 Share Repurchase Program - USD ($) | Apr. 30, 2020 | Dec. 18, 2019 |
Equity, Class of Treasury Stock [Line Items] | ||
Share repurchase program authorized amount | $ 150,000,000 | |
Remaining authorized repurchase amount | $ 144,900,000 |
Common Stock - Repurchase Activ
Common Stock - Repurchase Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended |
Apr. 30, 2020USD ($)$ / sharesshares | |
Equity [Abstract] | |
Total number of shares purchased (in shares) | shares | 0.2 |
Average price paid per share (in usd per share) | $ / shares | $ 36.16 |
Total cash paid for share repurchases | $ | $ 5.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (percent) | (8.40%) | 29.60% | (21.40%) | 28.70% |
Income tax provision | $ (10.6) | $ (12.6) | $ (19.2) | $ (17.3) |
Increase (decrease) in tax credits, work opportunity tax credit | $ 1.3 | $ 1.5 | 1.4 | |
Unrecognized tax benefits, increase resulting from current period tax positions | $ 1.4 |
Segment Information - Financial
Segment Information - Financial Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenues | ||||
Revenues | $ 1,496 | $ 1,594.7 | $ 3,109 | $ 3,202.6 |
Operating (loss) profit | ||||
Operating (loss) profit | (116.7) | 54.5 | (70.8) | 84.8 |
Income from unconsolidated affiliates | 0.9 | 0.8 | 1.8 | 1.7 |
Interest expense | (10.5) | (12.8) | (20.7) | (26.3) |
(Loss) income from continuing operations before income taxes | (126.2) | 42.5 | (89.7) | 60.2 |
Impairment loss | 172.8 | 0 | 172.8 | 0 |
Goodwill, impairment loss | 163.8 | 163.8 | ||
Operating Segments | ||||
Revenues | ||||
Revenues | 1,526.4 | 1,627.3 | 3,170 | 3,269.6 |
Elimination of inter-segment revenues | ||||
Revenues | ||||
Revenues | (30.4) | (32.6) | (61) | (67) |
Corporate | ||||
Operating (loss) profit | ||||
Operating (loss) profit | (39.5) | (38.9) | (72.8) | (83.6) |
Segment Reconciling Items | ||||
Operating (loss) profit | ||||
Income from unconsolidated affiliates | (0.9) | (0.8) | (1.8) | (1.7) |
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions | (0.4) | 0 | (0.4) | 0 |
Business & Industry | Operating Segments | ||||
Revenues | ||||
Revenues | 785.6 | 807.7 | 1,606.5 | 1,636.6 |
Operating (loss) profit | ||||
Operating (loss) profit | 59.2 | 49.2 | 97.4 | 86 |
Technology & Manufacturing | Operating Segments | ||||
Revenues | ||||
Revenues | 233.7 | 224.3 | 467.6 | 460.4 |
Operating (loss) profit | ||||
Operating (loss) profit | 19.7 | 19.2 | 36.3 | 37.4 |
Aviation | ||||
Operating (loss) profit | ||||
Impairment loss | 61.1 | 61.1 | ||
Goodwill, impairment loss | 55.5 | 55.5 | ||
Aviation | Operating Segments | ||||
Revenues | ||||
Revenues | 184.7 | 250 | 423.5 | 502.4 |
Operating (loss) profit | ||||
Operating (loss) profit | (60.5) | 4.8 | (54.9) | 8.7 |
Education | ||||
Operating (loss) profit | ||||
Goodwill, impairment loss | 99.3 | 99.3 | ||
Education | Operating Segments | ||||
Revenues | ||||
Revenues | 200.1 | 209.3 | 408 | 418.2 |
Operating (loss) profit | ||||
Operating (loss) profit | (85.8) | 10.5 | (74.6) | 20.8 |
Technical Solutions | ||||
Operating (loss) profit | ||||
Impairment loss | 12.4 | 12.4 | ||
Goodwill, impairment loss | 9 | 9 | ||
Technical Solutions | Operating Segments | ||||
Revenues | ||||
Revenues | 122.3 | 135.9 | 264.3 | 252 |
Operating (loss) profit | ||||
Operating (loss) profit | (8.4) | 10.6 | (0.1) | 17.3 |
Government Services | Operating Segments | ||||
Operating (loss) profit | ||||
Operating (loss) profit | $ 0 | $ 0 | $ 0 | $ (0.1) |