0000771497-20-000012 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Jul. 31, 2020	Sep. 04, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 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		66,687,103
Entity Central Index Key	0000771497
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jul. 31, 2020	Oct. 31, 2019
Current assets
Cash and cash equivalents	$ 229.4	$ 58.5
Trade accounts receivable, net of allowances of $36.0 and $22.4 at July 31, 2020 and October 31, 2019, respectively	845.5	1,013.2
Costs incurred in excess of amounts billed	72.5	72.6
Prepaid expenses	95.8	75.7
Other current assets	69.1	55.5
Total current assets	1,312.2	1,275.4
Other investments	10.9	14.0
Property, plant and equipment, net of accumulated depreciation of $231.3 and $199.5 at July 31, 2020 and October 31, 2019, respectively	137.1	150.3
Right-of-use assets	156.6
Other intangible assets, net of accumulated amortization of $332.4 and $309.0 at July 31, 2020 and October 31, 2019, respectively	251.2	297.2
Goodwill	1,672.1	1,835.4
Other noncurrent assets	128.2	120.3
Total assets	3,668.3	3,692.6
Current liabilities
Current portion of long-term debt, net	86.6	57.2
Trade accounts payable	221.9	280.7
Accrued compensation	153.7	189.3
Accrued taxes—other than income	41.6	63.6
Insurance claims	157.6	149.8
Income taxes payable	4.8	3.5
Current portion of lease liabilities	37.2
Other accrued liabilities	174.1	158.2
Total current liabilities	877.4	902.4
Long-term debt, net	664.2	744.2
Long-term lease liabilities	141.1
Deferred income tax liability, net	25.9	47.7
Noncurrent insurance claims	378.3	365.2
Other noncurrent liabilities	118.3	78.8
Noncurrent income taxes payable	11.8	12.2
Total liabilities	2,217.0	2,150.6
Commitments and contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value; 500,000 shares authorized; none issued	0.0	0.0
Common stock, $0.01 par value; 100,000,000 shares authorized; 66,676,970 and 66,571,427 shares issued and outstanding at July 31, 2020 and October 31, 2019, respectively	0.7	0.7
Additional paid-in capital	714.9	708.9
Accumulated other comprehensive loss, net of taxes	(30.1)	(23.9)
Retained earnings	765.9	856.3
Total stockholders’ equity	1,451.3	1,542.0
Total liabilities and stockholders’ equity	$ 3,668.3	$ 3,692.6

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jul. 31, 2020	Oct. 31, 2019
Statement of Financial Position [Abstract]
Trade accounts receivable, allowance	$ 36.0	$ 22.4
Property, plant and equipment, accumulated depreciation	231.3	199.5
Other intangible assets, accumulated amortization	$ 332.4	$ 309.0
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)	66,676,970	66,571,427
Common stock, shares outstanding (in shares)	66,676,970	66,571,427

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Income Statement [Abstract]
Revenues	$ 1,394.1	$ 1,647.9	$ 4,503.0	$ 4,850.6
Operating expenses	1,174.9	1,454.1	3,914.8	4,314.2
Selling, general and administrative expenses	113.7	119.8	350.8	340.9
Restructuring and related expenses	0.0	2.0	5.0	8.5
Amortization of intangible assets	11.8	14.9	37.0	44.9
Impairment loss	0.0	0.0	172.8	0.0
Operating profit	93.6	57.3	22.8	142.1
Income from unconsolidated affiliates	0.2	0.7	2.0	2.4
Interest expense	(13.8)	(12.9)	(34.5)	(39.2)
Income (loss) from continuing operations before income taxes	80.0	45.0	(9.7)	105.3
Income tax provision	(24.0)	(8.5)	(43.2)	(25.8)
Income (loss) from continuing operations	56.0	36.5	(52.9)	79.4
Income from discontinued operations, net of taxes	0.0	0.2	0.1	0.0
Net income (loss)	56.0	36.8	(52.8)	79.4
Other comprehensive income (loss)
Interest rate swaps	0.7	(5.7)	(9.2)	(17.9)
Foreign currency translation	4.3	(4.6)	0.5	(2.4)
Income tax (provision) benefit	(0.2)	1.6	2.5	4.9
Comprehensive income (loss)	$ 60.8	$ 28.0	$ (59.0)	$ 64.0
Net income (loss) per common share — Basic
Income (loss) from continuing operations (in usd per share)	$ 0.84	$ 0.55	$ (0.79)	$ 1.19
Income (loss) from discontinued operations (in usd per share)	0	0	0	0
Net income (loss) (in usd per share)	0.84	0.55	(0.79)	1.19
Net income (loss) per common share — Diluted
Income (loss) from continuing operations (in usd per share)	0.83	0.55	(0.79)	1.19
Income (loss) from discontinued operations (in usd per share)	0	0	0	0
Net income (loss) (in usd per share)	$ 0.83	$ 0.55	$ (0.79)	$ 1.19
Weighted-average common and common equivalent shares outstanding
Basic (in shares)	66.9	66.6	66.9	66.5
Diluted (in shares)	67.2	67.0	66.9	66.8

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 Earnings Cumulative Effect, Period of Adoption, Adjustment
Dividends
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09		$ 0.7	$ 691.8	$ (9.0)	$ 771.2
Balance, beginning of year (in shares) at Oct. 31, 2018		66.0
Balance, beginning of year at Oct. 31, 2018		$ 0.7	691.8	(9.0)	771.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued under employee stock purchase and share-based compensation plans (in shares)		0.4
Stock issued under employee stock purchase and share-based compensation plans, net		$ 0.0	1.5
Share-based compensation expense			13.6
Repurchase of common stock (in shares)		0.0
Repurchase of common stock		$ 0.0	0.0
Other comprehensive income (loss)				(15.4)
Net income (loss)	$ 79.4				79.4
Dividends
Common stock ($0.185, $0.180, $0.555, and $0.540 per share)					(35.8)
Stock issued under share-based compensation plans					(0.8)
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09	1,503.6	$ 0.7	706.9	(24.4)	820.5	$ 6.5
Balance, end of year (in shares) at Jul. 31, 2019		66.4
Balance, end of year at Jul. 31, 2019	1,503.6	$ 0.7	706.9	(24.4)	820.5	6.5
Dividends
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09		$ 0.7	700.6	(15.7)	795.9
Balance, beginning of year (in shares) at Apr. 30, 2019		66.3
Balance, beginning of year at Apr. 30, 2019		$ 0.7	700.6	(15.7)	795.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued under employee stock purchase and share-based compensation plans (in shares)		0.1
Stock issued under employee stock purchase and share-based compensation plans, net		$ 0.0	1.5
Share-based compensation expense			4.8
Repurchase of common stock (in shares)		0.0
Repurchase of common stock		$ 0.0	0.0
Other comprehensive income (loss)				(8.7)
Net income (loss)	36.8				36.8
Dividends
Common stock ($0.185, $0.180, $0.555, and $0.540 per share)					(11.9)
Stock issued under share-based compensation plans					(0.1)
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09	1,503.6	$ 0.7	706.9	(24.4)	820.5	6.5
Balance, end of year (in shares) at Jul. 31, 2019		66.4
Balance, end of year at Jul. 31, 2019	1,503.6	$ 0.7	706.9	(24.4)	820.5	6.5
Dividends
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09	1,503.6	0.7	706.9	(24.4)	820.5	$ 6.5
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09	1,542.0	$ 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	$ 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 under employee stock purchase and share-based compensation plans, net		$ 0.0	0.0
Share-based compensation expense			11.1
Repurchase of common stock (in shares)	(0.2)	(0.2)
Repurchase of common stock	$ (5.1)	$ 0.0	(5.1)
Other comprehensive income (loss)				(6.2)
Net income (loss)	(52.8)				(52.8)
Dividends
Common stock ($0.185, $0.180, $0.555, and $0.540 per share)					(37.0)
Stock issued under share-based compensation plans					(0.6)
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09	1,542.0	$ 0.7	714.9	(30.1)	765.9
Balance, end of year (in shares) at Jul. 31, 2020		66.7
Balance, end of year at Jul. 31, 2020	1,451.3	$ 0.7	714.9	(30.1)	765.9
Dividends
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09		$ 0.7	707.1	(34.9)	722.3
Balance, beginning of year (in shares) at Apr. 30, 2020		66.6
Balance, beginning of year at Apr. 30, 2020		$ 0.7	707.1	(34.9)	722.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued under employee stock purchase and share-based compensation plans (in shares)		0.0
Stock issued under employee stock purchase and share-based compensation plans, net		$ 0.0	0.9
Share-based compensation expense			6.9
Repurchase of common stock (in shares)		0.0
Repurchase of common stock		$ 0.0	0.0
Other comprehensive income (loss)				4.8
Net income (loss)	56.0				56.0
Dividends
Common stock ($0.185, $0.180, $0.555, and $0.540 per share)					(12.3)
Stock issued under share-based compensation plans					(0.1)
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09	1,451.3	$ 0.7	714.9	(30.1)	765.9
Balance, end of year (in shares) at Jul. 31, 2020		66.7
Balance, end of year at Jul. 31, 2020	1,451.3	$ 0.7	714.9	(30.1)	765.9
Dividends
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09	$ 1,451.3	$ 0.7	$ 714.9	$ (30.1)	$ 765.9

Consolidated Statements of Stockholder's' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Statement of Stockholders' Equity [Abstract]
Common stock, dividends (in usd per share)	$ 0.185	$ 0.180	$ 0.555	$ 0.540

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019
Cash flows from operating activities
Net income (loss)	$ (52.8)	$ 79.4
Income from discontinued operations, net of taxes	(0.1)	0.0
(Loss) income from continuing operations	(52.9)	79.4
Adjustments to reconcile (loss) income from continuing operations to net cash provided by operating activities of continuing operations
Depreciation and amortization	73.2	81.4
Impairment loss	172.8	0.0
Deferred income taxes	(19.4)	(3.8)
Share-based compensation expense	11.1	13.6
Provision for bad debt	19.5	5.0
Amortization of accumulated other comprehensive gain on interest rate swaps	(5.0)	(4.3)
Discount accretion on insurance claims	0.6	0.6
Loss (gain) on sale of assets	1.4	(0.1)
Income from unconsolidated affiliates	(2.0)	(2.4)
Distributions from unconsolidated affiliates	0.1	3.6
Changes in operating assets and liabilities
Trade accounts receivable and costs incurred in excess of amounts billed	148.3	(120.6)
Prepaid expenses and other current assets	(39.3)	(16.1)
Right-of-use assets	10.9
Other noncurrent assets	(2.0)	6.7
Trade accounts payable and other accrued liabilities	(125.6)	41.0
Long-term lease liabilities	(13.1)
Insurance claims	20.2	8.0
Income taxes payable	5.9	13.7
Other noncurrent liabilities	54.2	8.3
Total adjustments	311.6	34.6
Net cash provided by operating activities of continuing operations	258.7	114.0
Net cash provided by operating activities of discontinued operations	0.1	0.0
Net cash provided by operating activities	258.8	114.0
Cash flows from investing activities
Additions to property, plant and equipment	(28.9)	(44.4)
Proceeds from sale of assets	5.8	0.3
Proceeds from redemption of auction rate security	5.0	0.0
Net cash used in investing activities	(18.1)	(44.1)
Cash flows from financing activities
(Taxes withheld) and proceeds from issuance of share-based compensation awards, net	(0.6)	0.7
Repurchases of common stock	(5.1)	0.0
Dividends paid	(37.0)	(35.8)
Deferred financing costs paid	(4.4)	0.0
Borrowings from credit facility	1,052.0	1,219.9
Repayment of borrowings from credit facility	(1,103.1)	(1,236.8)
Changes in book cash overdrafts	31.3	3.4
Financing of energy savings performance contracts	1.5	4.9
Repayment of finance leases	(2.7)
Repayment of finance leases		(2.7)
Net cash used in financing activities	(68.1)	(46.4)
Effect of exchange rate changes on cash and cash equivalents	(1.7)	(2.1)
Net increase in cash and cash equivalents	170.9	21.5
Cash and cash equivalents at beginning of year	58.5	39.1
Cash and cash equivalents at end of year	$ 229.4	$ 60.5

The Company and Nature of Operations	9 Months Ended
The Company and Nature of Operations	Jul. 31, 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: Through these groups, we offer janitorial, facilities engineering, parking, and specialized mechanical and electrical technical solutions, on a standalone basis or in combination with other services.

Basis of Presentation and Significant Accounting Policies

9 Months Ended

Jul. 31, 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 business slowdowns and shutdowns.

In addition, during the second and third quarters of 2020, we took several human capital management actions to help align our organization operationally and help mitigate the financial impact of the Pandemic on our business, one of which included temporary furloughs for certain staff and management employees. To continue supporting furloughed staff and management employees during the Pandemic, we paid 100% of health insurance

premiums during the furlough period for those enrolled in health benefit plans. Most of the furloughed staff and management employees returned to work effective August 1, 2020, and we have not accrued any additional expenses associated with these employees as of and for the three months ended July 31, 2020.

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,” and Item 2., “Management’s Discussion and Analysis of Financial Conditions and Results of Operations.”

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 July 31,						Nine Months Ended July 31,
(in millions)	2020		2019		2020		2019
Business & Industry	$	42.6	$	70.9	$	178.0	$	211.2
Aviation	14.8		24.4		61.4		72.0
Total	$	57.4	$	95.3	$	239.3	$	283.2

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 nine months ended July 31, 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 October 31, 2019		Adjustments Due to Adoption of Topic 842		Balance at November 1, 2019
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 expedient for Pandemic-related rent concessions, primarily rent deferrals or rent abatements, and we have elected not to remeasure the related lease liability and ROU asset for those leases. These concessions will be recognized as a reduction of rent expense in the month they occur. This election will continue while these concessions are in effect. Pandemic-related lease concessions were not material for the three and nine months ended July 31, 2020.

We do not expect there to be a significant impact on our fiscal 2021 consolidated financial statements from any recently issued accounting pronouncements that we have not yet adopted.

Revenues

9 Months Ended

Jul. 31, 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”), Education, Aviation, and Technical Solutions, as described in Note 13, “Segment Information.”


	Three Months Ended July 31, 2020																						Nine Months Ended July 31, 2020
(in millions)	B&I		T&M		Education		Aviation		Technical Solutions		Total		B&I		T&M		Education		Aviation		Technical Solutions		Total

Janitorial⁽¹⁾	$	596.9	$	197.1	$	165.7	$	26.9	$	—	$	986.6	$	1,786.9	$	573.1	$	529.4	$	91.2	$	—	$	2,980.5
Parking⁽²⁾	67.7		8.5		0.2		46.9		—		123.3		290.7		24.0		1.5		203.1		—		519.4
Facility Services⁽³⁾	92.2		37.6		22.7		6.3		—		158.8		285.5		113.7		65.7		24.8		—		489.7
Building & Energy Solutions⁽⁴⁾	—		—		—		—		119.2		119.2		—		—		—		—		383.5		383.5
Airline Services⁽⁵⁾	0.1		—		—		36.2		—		36.3		0.3		—		—		220.7		—		221.0
	$	756.9	$	243.2	$	188.6	$	116.4	$	119.2	$	1,424.2	$	2,363.4	$	710.8	$	596.6	$	539.9	$	383.5	$	4,594.1
Elimination of inter-segment revenues											(30.1)												(91.1)
Total											$	1,394.1											$	4,503.0


	Three Months Ended July 31, 2019																						Nine Months Ended July 31, 2019
(in millions)	B&I		T&M		Education		Aviation		Technical Solutions		Total		B&I		T&M		Education		Aviation		Technical Solutions		Total

Janitorial⁽¹⁾	$	576.9	$	184.2	$	191.4	$	32.4	$	—	$	985.0	$	1,738.2	$	554.4	$	566.8	$	94.0	$	—	$	2,953.4
Parking⁽²⁾	129.5		6.3		0.7		83.6		—		220.1		383.3		19.6		2.3		253.7		—		658.8
Facility Services⁽³⁾	101.4		36.5		23.3		18.5		—		179.6		322.5		113.2		64.6		54.5		—		554.7
Building & Energy Solutions⁽⁴⁾	—		—		—		—		165.7		165.7		—		—		—		—		417.7		417.7
Airline Services⁽⁵⁾	0.1		—		—		128.8		—		128.9		0.5		0.1		—		363.7		—		364.2
	$	807.9	$	226.9	$	215.4	$	263.3	$	165.7	$	1,679.3	$	2,444.5	$	687.3	$	633.6	$	765.8	$	417.7	$	4,948.9
Elimination of inter-segment revenues											(31.3)												(98.3)
Total											$	1,647.9											$	4,850.6

⁽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 (work orders) 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 July 31, 2020, performance obligations that were unsatisfied or partially unsatisfied for which we expect to recognize revenue totaled $181.5 million. We expect to recognize revenue on approximately 83% 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)	July 31, 2020		October 31, 2019
Contract assets
Billed trade receivables⁽¹⁾	$	829.3	$	978.7
Unbilled trade receivables⁽¹⁾	52.2		56.9
Costs incurred in excess of amounts billed⁽²⁾	72.5		72.6
Capitalized commissions⁽³⁾	22.6		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 nine months ended July 31, 2020, we capitalized $10.6 million of new costs and amortized $9.8 million of previously capitalized costs. There was no impairment loss recorded on the costs capitalized.


(in millions)	Nine Months Ended July 31, 2020
Contract liabilities⁽¹⁾
Balance at beginning of period	$	38.0
Additional contract liabilities	246.1
Recognition of deferred revenue	(241.7)
Balance at end of period	$	42.3

(1) Included in other accrued liabilities on the consolidated balance sheets.

Leases

9 Months Ended

Jul. 31, 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 in a lease 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.”

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 July 31, 2020 were as follows:

Balance at

(in millions)

Classification

July 31, 2020

Lease assets

Operating leases

Right-of-use assets

156.6

Finance leases

Property, plant and equipment, net⁽¹⁾

6.8

Total lease assets

163.4

Lease liabilities

Current liabilities

Operating leases

Current portion of lease liabilities

37.2

Finance leases

Other accrued liabilities

4.1

Noncurrent liabilities

Operating leases

Long-term lease liabilities

141.1

Finance leases

Other noncurrent liabilities

1.8

Total lease liabilities

184.2

⁽¹⁾ Finance lease assets are recorded net of accumulated amortization of $13.9 million as of July 31, 2020.

Total lease costs for the three and nine months ended July 31, 2020 were $22.3 million and $75.9 million, respectively, including operating leases of $21.0 million and $72.2 million, respectively, and finance leases of $1.3 million, and $3.7 million, respectively. The components of lease costs and classification within the unaudited Consolidated Statements of Comprehensive Income (Loss) were as follows:


	Three Months Ended		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Operating lease costs:
Operating expenses⁽¹⁾⁽²⁾	$	14.8	$	52.9
Selling, general and administrative expenses⁽³⁾	6.2		19.3
Finance lease costs:
Operating expenses⁽⁴⁾	1.2		3.3

Interest expense⁽⁵⁾	0.1		0.4
Total lease costs	$	22.3	$	75.9

⁽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		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Short-term lease costs	$	9.5	$	35.9
Variable lease costs	—		3.0
Total short-term and variable lease costs	$	9.5	$	38.9

Sublease income generated during the three and nine months ended July 31, 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 July 31, 2020 are as follows:


(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Remainder of fiscal 2020	$	11.3	$	1.0	$	12.3
Fiscal 2021	42.4		3.3		45.7
Fiscal 2022	35.0		1.7		36.7
Fiscal 2023	29.5		0.9		30.4
Fiscal 2024	24.0		—		24.0
Thereafter	61.4		—		61.4
Total lease payments	203.7		6.9		210.5
Less: imputed interest	25.4		1.0		26.3
Present value of lease liabilities	$	178.3	$	5.9	$	184.2

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 July 31, 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
	July 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	2.2
Weighted-average discount rate
Operating leases	4.11	%
Finance leases	4.50	%

The following table includes supplemental cash and non-cash information related to operating leases:

Nine Months Ended

(in millions)

July 31, 2020

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

34.5

Operating cash flows from finance leases

0.4

Financing cash flows from finance leases

2.7

Lease assets obtained in exchange for new operating lease liabilities⁽¹⁾

15.4

⁽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.

(2) Total undiscounted future minimum payments.

Leases

LEASES

The components of lease assets and liabilities and their classification on our unaudited Consolidated Balance Sheets as of July 31, 2020 were as follows:

Balance at

(in millions)

Classification

July 31, 2020

Lease assets

Operating leases

Right-of-use assets

156.6

Finance leases

Property, plant and equipment, net⁽¹⁾

6.8

Total lease assets

163.4

Lease liabilities

Current liabilities

Operating leases

Current portion of lease liabilities

37.2

Finance leases

Other accrued liabilities

4.1

Noncurrent liabilities

Operating leases

Long-term lease liabilities

141.1

Finance leases

Other noncurrent liabilities

1.8

Total lease liabilities

184.2

⁽¹⁾ Finance lease assets are recorded net of accumulated amortization of $13.9 million as of July 31, 2020.


	Three Months Ended		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Operating lease costs:
Operating expenses⁽¹⁾⁽²⁾	$	14.8	$	52.9
Selling, general and administrative expenses⁽³⁾	6.2		19.3
Finance lease costs:
Operating expenses⁽⁴⁾	1.2		3.3

Interest expense⁽⁵⁾	0.1		0.4
Total lease costs	$	22.3	$	75.9

⁽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		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Short-term lease costs	$	9.5	$	35.9
Variable lease costs	—		3.0
Total short-term and variable lease costs	$	9.5	$	38.9


(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Remainder of fiscal 2020	$	11.3	$	1.0	$	12.3
Fiscal 2021	42.4		3.3		45.7
Fiscal 2022	35.0		1.7		36.7
Fiscal 2023	29.5		0.9		30.4
Fiscal 2024	24.0		—		24.0
Thereafter	61.4		—		61.4
Total lease payments	203.7		6.9		210.5
Less: imputed interest	25.4		1.0		26.3
Present value of lease liabilities	$	178.3	$	5.9	$	184.2

Future sublease rental income was excluded for the periods shown above as the amounts are 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
	July 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	2.2
Weighted-average discount rate
Operating leases	4.11	%
Finance leases	4.50	%

The following table includes supplemental cash and non-cash information related to operating leases:

Nine Months Ended

(in millions)

July 31, 2020

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

34.5

Operating cash flows from finance leases

0.4

Financing cash flows from finance leases

2.7

Lease assets obtained in exchange for new operating lease liabilities⁽¹⁾

15.4

⁽¹⁾Excludes the amount initially capitalized in conjunction with the adoption of Topic 842.


(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.

(2) Total undiscounted future minimum payments.

Restructuring and Related Costs

9 Months Ended

Jul. 31, 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 have been temporarily suspended since 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, October 31, 2019		Costs Recognized⁽¹⁾		Payments		Non-Cash Items		Balance, July 31, 2020
Employee severance	$	3.0	$	0.3	$	(1.8)	$	—	$	1.5
External support fees	0.5		1.4		(1.9)		—		—
Other project fees	0.7		3.3		(3.7)		(0.2)		0.2
Lease exit costs and asset impairment	2.7		—		(0.2)		(2.5)		—
Total	$	7.0	$	5.0	$	(7.6)	$	(2.7)	$	1.7

⁽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	$	31.3	$	26.3	$	8.4	$	5.2	$	106.1

Net Income (Loss) Per Common Share

9 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

NET INCOME (LOSS) PER COMMON SHARE

Basic and Diluted Net Income (Loss) Per Common Share Calculations


	Three Months Ended July 31,						Nine Months Ended July 31,
(in millions, except per share amounts)	2020		2019		2020		2019
Income (loss) from continuing operations	$	56.0	$	36.5	$	(52.9)	$	79.4
Income from discontinued operations, net of taxes	—		0.2		0.1		—
Net income (loss)	$	56.0	$	36.8	$	(52.8)	$	79.4

Weighted-average common and common equivalent shares outstanding — Basic	66.9		66.6		66.9		66.5
Effect of dilutive securities⁽¹⁾
Restricted stock units	0.1		0.2		—		0.2
Stock options	0.1		0.1		—		0.1
Performance shares	0.1		—		—		—
Weighted-average common and common equivalent shares outstanding — Diluted	67.2		67.0		66.9		66.8

Net income (loss) per common share — Basic
Income (loss) from continuing operations	$	0.84	$	0.55	$	(0.79)	$	1.19
Income from discontinued operations	—		—		—		—
Net income (loss)	$	0.84	$	0.55	$	(0.79)	$	1.19

Net income (loss) per common share — Diluted
Income (loss) from continuing operations	$	0.83	$	0.55	$	(0.79)	$	1.19
Income from discontinued operations	—		—		—		—
Net income (loss)	$	0.83	$	0.55	$	(0.79)	$	1.19

⁽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 July 31,			Nine Months Ended July 31,
(in millions)	2020	2019	2020	2019
Anti-dilutive	0.4	0.1	0.6	0.3

Fair Value of Financial Instruments

9 Months Ended

Jul. 31, 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	July 31, 2020		October 31, 2019
Cash and cash equivalents⁽¹⁾	1	$	229.4	$	58.5
Insurance deposits⁽²⁾	1	0.7		0.8
Assets held in funded deferred compensation plan⁽³⁾	1	2.6		2.5
Credit facility⁽⁴⁾	2	757.3		808.4
Interest rate swap liabilities⁽⁵⁾	2	18.8		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 July 31, 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 July 31, 2020 we had no investments in auction rate securities.

During the nine months ended July 31, 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 in the second quarter of 2020. Based on this qualitative assessment, we determined that goodwill impairment was not more likely than not in our goodwill reporting units, other than in 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 three 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 nine months ended July 31, 2020, and is not tax deductible. During the three months ended July 31, 2020, we did not identify any triggering events, and thus, there were no goodwill impairments recorded during the quarter. 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 Rates
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 nine months ended July 31, 2020.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Insurance

9 Months Ended

Jul. 31, 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 Performed During Q3 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 third quarter of 2020, we performed a comprehensive actuarial review of the majority of our casualty insurance programs that evaluated changes made to claims reserves and claims payment activity for the period of November 1, 2019 through April 30, 2020 (the “Actuarial Review”). The Actuarial Review was comprehensive in nature and was based on loss development patterns, trend assumptions, and underlying expected loss costs during the period analyzed.

Based on the results of the Actuarial Review, at July 31, 2020, we decreased our total reserves for prior periods by $8.5 million. Together with the $6.6 million decrease we recorded during the first half of 2020, the total decrease to our reserves for claims related to prior periods was $15.1 million for the nine months ended July 31, 2020. This compares to a $2.0 million increase in prior period reserves for the nine months ended July 31, 2019. We will continue to assess ongoing developments, which may result in further adjustments to reserves.

During the fourth quarter of 2020, we expect to perform an update to our Actuarial Review for our significant insurance programs that will use updated claims data and consider changes in claims development and claims payment activity for the periods analyzed. This review will be abbreviated in nature based on actual versus expected development during the periods analyzed, will rely on the key assumptions used in the Actuarial Review (most notably loss development patterns, trend assumptions, and underlying expected loss costs), and will include claims related to certain previously acquired businesses. This review may lead to further adjustments to our insurance reserves.

Insurance Related Balances and Activity


(in millions)	July 31, 2020		October 31, 2019
Insurance claim reserves, excluding medical and dental	$	521.0	$	507.8
Medical and dental claim reserves	14.9		7.2
Insurance recoverables	69.2		64.5

At July 31, 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)	July 31, 2020		October 31, 2019
Standby letters of credit	$	143.6	$	141.0
Surety bonds	85.2		90.8
Restricted insurance deposits	0.7		0.8
Total	$	229.5	$	232.6

Credit Facility

9 Months Ended

Jul. 31, 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. During the quarter ended July 31, 2020, the Company repaid substantially all of these amounts borrowed under the revolving line of credit 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 6.50 to 1.00 by the quarter ending October 31, 2020, and back 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. The Amendment made certain additional changes to the negative covenant 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 July 31, 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. We were also charged a commitment fee, which was paid quarterly in arrears and was 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. 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. At July 31, 2020, the weighted average interest rate on our outstanding borrowings was 3.42%. We are also charged a commitment fee, which is paid quarterly in arrears and is based on our total leverage ratio, that ranges 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, such as: 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 of $18.7 million, consisting of $13.4 million related to the term loan and $5.2 million related to the line of credit, 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 we capitalized in the quarter ended July 31, 2020, and are amortizing over the remaining term of the Credit Facility.

Credit Facility Information


(in millions)	July 31, 2020		October 31, 2019
Current portion of long-term debt
Gross term loan	$	90.0	$	60.0
Unamortized deferred financing costs	(3.4)		(2.8)
Current portion of term loan	$	86.6	$	57.2

Long-term debt
Gross term loan	$	590.0	$	680.0
Unamortized deferred financing costs	(3.0)		(4.1)
Total noncurrent portion of term loan	586.9		675.9
Revolving line of credit⁽¹⁾⁽²⁾	77.3		68.4
Long-term debt	$	664.2	$	744.2

⁽¹⁾ Standby letters of credit amounted to $153.1 million at July 31, 2020.

⁽²⁾At July 31, 2020, we had borrowing capacity of $563.7 million, reflecting covenant restrictions.

Term Loan Maturities

During the three and nine months ended July 31, 2020, we made principal payments under the term loan of $30.0 million and $60.0 million, respectively. As of July 31, 2020, the following principal payments are required under the term loan.


(in millions)	2020		2021		2022
Debt maturities	$	—	$	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

At July 31, 2020 and October 31, 2019, amounts recorded in AOCL for interest rate swaps were a loss of $4.5 million, net of taxes of $1.3 million, and a gain of $2.2 million, net of taxes of $1.2 million, respectively. These amounts included the gain associated with the interest rate swaps we terminated in 2018, which is being amortized to interest expense as interest payments are made over the term of our Credit Facility. During the three and nine months ended July 31, 2020, we amortized $1.2 million, net of taxes of $0.5 million, and $3.6 million, net of taxes of $1.4 million, respectively, of this gain to interest expense. During the three and nine months ended July 31, 2019, we amortized $1.0 million, net of taxes of $0.4 million, and $3.1 million, net of taxes of $1.2 million, respectively. At July 31, 2020, the total amount expected to be reclassified from AOCL to earnings during the next twelve months is a loss of $4.1 million, net of a tax benefit of $1.4 million.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Jul. 31, 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 July 31, 2020, these letters of credit and surety bonds totaled $153.1 million and $635.0 million, respectively. Guarantees In some instances, we offer clients guaranteed energy savings under certain energy savings contracts. At July 31, 2020, total guarantees were $178.9 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 $30 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 July 31, 2020, the total amount accrued for all probable litigation losses where a reasonable estimate of the loss could be made was $6.3 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 $11 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. On September 20, 2018, the trial court entered an order defining four certified subclasses of janitors who were employed by the legacy ABM janitorial companies in California at any time between April 7, 2002 and April 30, 2013, on claims based on alleged previous automatic deduction practices for meal breaks, unpaid meal premiums, unpaid split shift premiums, and unreimbursed business expenses, such as mileage reimbursement for use of personal vehicles to travel between worksites. On February 1, 2019, the trial court held that the discovery related to PAGA claims allegedly arising after April 30, 2013 would be stayed until after the class and PAGA claims accruing prior to April 30, 2013 had been tried. The parties engaged in mediation in July 2019, which did not result in settlement of the case. On October 17, 2019, the plaintiffs filed a motion asking the trial court to certify additional classes based on an alleged failure to maintain time records, an alleged failure to provide accurate wage statements, and an alleged practice of combining meal and rest breaks. The trial court denied the plaintiffs’ motion to certify additional classes on December 26, 2019. The case was re-assigned to a new judge on January 6, 2020. The parties are currently engaged in class discovery. The class action claims accruing prior to April 30, 2013 are set for trial on January 19, 2021, but this date may be delayed as a result of the Pandemic. Prior to trial, we will have the opportunity to, among other things, seek decertification of the classes or engage in further mediation if we deem such actions appropriate. We may engage in one or more such activities in upcoming quarters.

Common Stock

9 Months Ended

Jul. 31, 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 July 31, 2020, authorization for $144.9 million of repurchases remained under the 2019 Share Repurchase Program.

Repurchase Activity


	Nine Months Ended
(in millions, except per share amounts)	July 31, 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	9 Months Ended
Income Taxes	Jul. 31, 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 nine months ended July 31, 2020, we had effective tax rates of 29.9% and (444.6)%, respectively. The effective tax rate for the nine months ended July 31, 2020, excluding a nondeductible impairment loss of $163.8 million, was 28.0%. For the three and nine months ended July 31, 2020, the provisions for taxes were $24.0 million and $43.2 million, respectively. During the three and nine months ended July 31, 2019, we had effective tax rates of 18.9% and 24.5%, respectively, resulting in provisions for taxes of $8.5 million and $25.8 million, respectively. Our effective tax rate for the three months ended July 31, 2020, was impacted by a discrete benefit of $0.8 million related to energy efficiency. Our effective tax rate for the three months ended July 31, 2019, was impacted by the following discrete items: a $2.0 million benefit from an expiring statute of limitations and a $0.5 million benefit from certain credits. Our effective tax rate for the nine months ended July 31, 2020, was impacted by the following discrete items: a $1.9 million tax provision related to the Work Opportunity Tax Credit (“WOTC”) and a $1.2 million benefit related to energy efficiency. Our effective tax rate for the nine months ended July 31, 2019, was impacted by the following discrete items: a $2.0 million benefit from an expiring statute of limitations; a $1.4 million provision for reserves; a $1.3 million provision related to WOTC; and a $1.1 million benefit from the vesting of share-based compensation awards. 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 income tax and payroll tax provisions. Among the payroll 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 business tax provisions in the CARES Act. The impact of the income tax provisions was not material. The impact of the payroll tax provisions was the deferral of approximately $58 million of payroll tax as of July 31, 2020. 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

9 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our current reportable segments consist of B&I, T&M, Education, Aviation, and Technical Solutions, as further described below.


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.
Education			Education delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges, and universities.
Aviation			Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation.
Technical Solutions			Technical Solutions specializes in 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 July 31,						Nine Months Ended July 31,
(in millions)	2020		2019		2020		2019
Revenues
Business & Industry	$	756.9	$	807.9	$	2,363.4	$	2,444.5
Technology & Manufacturing	243.2		226.9		710.8		687.3
Education	188.6		215.4		596.6		633.6
Aviation	116.4		263.3		539.9		765.8
Technical Solutions	119.2		165.7		383.5		417.7
Elimination of inter-segment revenues	(30.1)		(31.3)		(91.1)		(98.3)
	$	1,394.1	$	1,647.9	$	4,503.0	$	4,850.6
Operating profit (loss)
Business & Industry	$	71.6	$	45.3	$	169.1	$	131.2
Technology & Manufacturing	24.5		17.0		60.9		54.4
Education⁽¹⁾	18.3		12.6		(56.3)		33.4
Aviation⁽²⁾	(8.2)		8.6		(63.0)		17.2
Technical Solutions⁽³⁾	13.2		17.9		13.1		35.3
Government Services	—		—		—		(0.1)
Corporate	(24.8)		(43.5)		(97.7)		(127.1)
Adjustment for income from unconsolidated affiliates, included in Aviation	(0.2)		(0.7)		(2.0)		(2.4)
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions	(0.8)		0.1		(1.2)		0.1
	93.6		57.3		22.8		142.1
Income from unconsolidated affiliates	0.2		0.7		2.0		2.4
Interest expense	(13.8)		(12.9)		(34.5)		(39.2)
Income (loss) from continuing operations before income taxes	$	80.0	$	45.0	$	(9.7)	$	105.3

⁽¹⁾ Reflects impairment charges totaling $99.3 million on goodwill during the nine months ended July 31, 2020.

⁽²⁾Reflects impairment charges totaling $61.1 million on goodwill and intangible assets during the nine months ended July 31, 2020.

⁽³⁾ Reflects impairment charges totaling $12.4 million on goodwill and intangible assets during the nine months ended July 31, 2020.

The accounting policies for our segments are the same as those disclosed within our significant accounting policies in Note 2, “Basis of Presentation and Significant Accounting Policies.” Our management evaluates the performance of each reportable segment based on its respective operating profit results, which include the allocation of certain centrally incurred costs. Corporate expenses not allocated to segments include certain CEO and other finance and human resource departmental expenses, certain information technology costs, share-based compensation, certain legal costs and settlements, restructuring and related costs, certain actuarial adjustments to self-insurance reserves, and direct acquisition costs.

Basis of Presentation and Significant Accounting Policies (Policies)

9 Months Ended

Jul. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

Discontinued Operations

Management Reimbursement Revenue by Segment and Contracts with Customers

Recently Adopted Accounting Standards

Leases

•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

prior period financial statements have not been restated and continue to be reported under the accounting standards in effect for those prior periods presented.

The impact of adoption of Topic 842 on our unaudited Consolidated Balance Sheet was as follows:


(in millions)	Balance at October 31, 2019		Adjustments Due to Adoption of Topic 842		Balance at November 1, 2019
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

⁽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.

We do not expect there to be a significant impact on our fiscal 2021 consolidated financial statements from any recently issued accounting pronouncements that we have not yet adopted.

Revenues

We have arrangements under various contract types, as described in Note 2, “Basis of Presentation and Significant Accounting Policies,” in our Annual Report.

Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Jul. 31, 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 July 31,						Nine Months Ended July 31,
(in millions)	2020		2019		2020		2019
Business & Industry	$	42.6	$	70.9	$	178.0	$	211.2
Aviation	14.8		24.4		61.4		72.0
Total	$	57.4	$	95.3	$	239.3	$	283.2

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 October 31, 2019		Adjustments Due to Adoption of Topic 842		Balance at November 1, 2019
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

⁽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)

9 Months Ended

Jul. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Major Service Lines and Segments


	Three Months Ended July 31, 2020																						Nine Months Ended July 31, 2020
(in millions)	B&I		T&M		Education		Aviation		Technical Solutions		Total		B&I		T&M		Education		Aviation		Technical Solutions		Total

Janitorial⁽¹⁾	$	596.9	$	197.1	$	165.7	$	26.9	$	—	$	986.6	$	1,786.9	$	573.1	$	529.4	$	91.2	$	—	$	2,980.5
Parking⁽²⁾	67.7		8.5		0.2		46.9		—		123.3		290.7		24.0		1.5		203.1		—		519.4
Facility Services⁽³⁾	92.2		37.6		22.7		6.3		—		158.8		285.5		113.7		65.7		24.8		—		489.7
Building & Energy Solutions⁽⁴⁾	—		—		—		—		119.2		119.2		—		—		—		—		383.5		383.5
Airline Services⁽⁵⁾	0.1		—		—		36.2		—		36.3		0.3		—		—		220.7		—		221.0
	$	756.9	$	243.2	$	188.6	$	116.4	$	119.2	$	1,424.2	$	2,363.4	$	710.8	$	596.6	$	539.9	$	383.5	$	4,594.1
Elimination of inter-segment revenues											(30.1)												(91.1)
Total											$	1,394.1											$	4,503.0


	Three Months Ended July 31, 2019																						Nine Months Ended July 31, 2019
(in millions)	B&I		T&M		Education		Aviation		Technical Solutions		Total		B&I		T&M		Education		Aviation		Technical Solutions		Total

Janitorial⁽¹⁾	$	576.9	$	184.2	$	191.4	$	32.4	$	—	$	985.0	$	1,738.2	$	554.4	$	566.8	$	94.0	$	—	$	2,953.4
Parking⁽²⁾	129.5		6.3		0.7		83.6		—		220.1		383.3		19.6		2.3		253.7		—		658.8
Facility Services⁽³⁾	101.4		36.5		23.3		18.5		—		179.6		322.5		113.2		64.6		54.5		—		554.7
Building & Energy Solutions⁽⁴⁾	—		—		—		—		165.7		165.7		—		—		—		—		417.7		417.7
Airline Services⁽⁵⁾	0.1		—		—		128.8		—		128.9		0.5		0.1		—		363.7		—		364.2
	$	807.9	$	226.9	$	215.4	$	263.3	$	165.7	$	1,679.3	$	2,444.5	$	687.3	$	633.6	$	765.8	$	417.7	$	4,948.9
Elimination of inter-segment revenues											(31.3)												(98.3)
Total											$	1,647.9											$	4,850.6

sustainability of client locations. These arrangements are generally structured as monthly fixed-price, cost-plus, and tag services contracts.

Contract with Customer, Asset and Liability

The following tables present the balances in our contract assets and contract liabilities:


(in millions)	July 31, 2020		October 31, 2019
Contract assets
Billed trade receivables⁽¹⁾	$	829.3	$	978.7
Unbilled trade receivables⁽¹⁾	52.2		56.9
Costs incurred in excess of amounts billed⁽²⁾	72.5		72.6
Capitalized commissions⁽³⁾	22.6		21.8

⁽²⁾Fluctuation is primarily due to the timing of payments on our contracts measured using the cost-to-cost method of revenue recognition.


(in millions)	Nine Months Ended July 31, 2020
Contract liabilities⁽¹⁾
Balance at beginning of period	$	38.0
Additional contract liabilities	246.1
Recognition of deferred revenue	(241.7)
Balance at end of period	$	42.3

(1) Included in other accrued liabilities on the consolidated balance sheets.

Leases (Tables)

9 Months Ended

Jul. 31, 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 July 31, 2020 were as follows:

Balance at

(in millions)

Classification

July 31, 2020

Lease assets

Operating leases

Right-of-use assets

156.6

Finance leases

Property, plant and equipment, net⁽¹⁾

6.8

Total lease assets

163.4

Lease liabilities

Current liabilities

Operating leases

Current portion of lease liabilities

37.2

Finance leases

Other accrued liabilities

4.1

Noncurrent liabilities

Operating leases

Long-term lease liabilities

141.1

Finance leases

Other noncurrent liabilities

1.8

Total lease liabilities

184.2

(1) Finance lease assets are recorded net of accumulated amortization of $13.9 million as of July 31, 2020.

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
	July 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6.1
Finance leases	2.2
Weighted-average discount rate
Operating leases	4.11	%
Finance leases	4.50	%

Lease, Cost

The components of lease costs and classification within the unaudited Consolidated Statements of Comprehensive Income (Loss) were as follows:


	Three Months Ended		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Operating lease costs:
Operating expenses⁽¹⁾⁽²⁾	$	14.8	$	52.9
Selling, general and administrative expenses⁽³⁾	6.2		19.3
Finance lease costs:
Operating expenses⁽⁴⁾	1.2		3.3

Interest expense⁽⁵⁾	0.1		0.4
Total lease costs	$	22.3	$	75.9

⁽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		Nine Months Ended
(in millions)	July 31, 2020		July 31, 2020
Short-term lease costs	$	9.5	$	35.9
Variable lease costs	—		3.0
Total short-term and variable lease costs	$	9.5	$	38.9

The following table includes supplemental cash and non-cash information related to operating leases:

Nine Months Ended

(in millions)

July 31, 2020

Cash paid for amounts included in the measurement of lease liabilities

Operating cash flows from operating leases

34.5

Operating cash flows from finance leases

0.4

Financing cash flows from finance leases

2.7

Lease assets obtained in exchange for new operating lease liabilities⁽¹⁾

15.4

(1) Excludes the amount initially capitalized in conjunction with the adoption of Topic 842.

Maturities of Operating Lease Liabilities


(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Remainder of fiscal 2020	$	11.3	$	1.0	$	12.3
Fiscal 2021	42.4		3.3		45.7
Fiscal 2022	35.0		1.7		36.7
Fiscal 2023	29.5		0.9		30.4
Fiscal 2024	24.0		—		24.0
Thereafter	61.4		—		61.4
Total lease payments	203.7		6.9		210.5
Less: imputed interest	25.4		1.0		26.3
Present value of lease liabilities	$	178.3	$	5.9	$	184.2

Future sublease rental income was excluded for the periods shown above as the amounts are immaterial.


(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.

(2) Total undiscounted future minimum payments.

Maturities of Finance Lease Liabilities


(in millions)	Operating Lease Liabilities		Finance Lease Liabilities		Total
Remainder of fiscal 2020	$	11.3	$	1.0	$	12.3
Fiscal 2021	42.4		3.3		45.7
Fiscal 2022	35.0		1.7		36.7
Fiscal 2023	29.5		0.9		30.4
Fiscal 2024	24.0		—		24.0
Thereafter	61.4		—		61.4
Total lease payments	203.7		6.9		210.5
Less: imputed interest	25.4		1.0		26.3
Present value of lease liabilities	$	178.3	$	5.9	$	184.2

Future sublease rental income was excluded for the periods shown above as the amounts are immaterial.


(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.

(2) Total undiscounted future minimum payments.

Restructuring and Related Costs (Tables)

9 Months Ended

Jul. 31, 2020

Restructuring and Related Activities [Abstract]

Schedule of Restructuring and Related Liabilities

Rollforward of Restructuring and Related Liabilities


(in millions)	Balance, October 31, 2019		Costs Recognized⁽¹⁾		Payments		Non-Cash Items		Balance, July 31, 2020
Employee severance	$	3.0	$	0.3	$	(1.8)	$	—	$	1.5
External support fees	0.5		1.4		(1.9)		—		—
Other project fees	0.7		3.3		(3.7)		(0.2)		0.2
Lease exit costs and asset impairment	2.7		—		(0.2)		(2.5)		—
Total	$	7.0	$	5.0	$	(7.6)	$	(2.7)	$	1.7

⁽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	$	31.3	$	26.3	$	8.4	$	5.2	$	106.1

Net Income (Loss) Per Common Share (Tables)

9 Months Ended

Jul. 31, 2020

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income Per Common Share Calculations

Basic and Diluted Net Income (Loss) Per Common Share Calculations


	Three Months Ended July 31,						Nine Months Ended July 31,
(in millions, except per share amounts)	2020		2019		2020		2019
Income (loss) from continuing operations	$	56.0	$	36.5	$	(52.9)	$	79.4
Income from discontinued operations, net of taxes	—		0.2		0.1		—
Net income (loss)	$	56.0	$	36.8	$	(52.8)	$	79.4

Weighted-average common and common equivalent shares outstanding — Basic	66.9		66.6		66.9		66.5
Effect of dilutive securities⁽¹⁾
Restricted stock units	0.1		0.2		—		0.2
Stock options	0.1		0.1		—		0.1
Performance shares	0.1		—		—		—
Weighted-average common and common equivalent shares outstanding — Diluted	67.2		67.0		66.9		66.8

Net income (loss) per common share — Basic
Income (loss) from continuing operations	$	0.84	$	0.55	$	(0.79)	$	1.19
Income from discontinued operations	—		—		—		—
Net income (loss)	$	0.84	$	0.55	$	(0.79)	$	1.19

Net income (loss) per common share — Diluted
Income (loss) from continuing operations	$	0.83	$	0.55	$	(0.79)	$	1.19
Income from discontinued operations	—		—		—		—
Net income (loss)	$	0.83	$	0.55	$	(0.79)	$	1.19

(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.

Schedule of Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans

Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans


	Three Months Ended July 31,			Nine Months Ended July 31,
(in millions)	2020	2019	2020	2019
Anti-dilutive	0.4	0.1	0.6	0.3

Fair Value of Financial Instruments (Tables)

9 Months Ended

Jul. 31, 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	July 31, 2020		October 31, 2019
Cash and cash equivalents⁽¹⁾	1	$	229.4	$	58.5
Insurance deposits⁽²⁾	1	0.7		0.8
Assets held in funded deferred compensation plan⁽³⁾	1	2.6		2.5
Credit facility⁽⁴⁾	2	757.3		808.4
Interest rate swap liabilities⁽⁵⁾	2	18.8		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.

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 Rates
Education						10.0%
Aviation						10.5%
Technical Solutions						11.0%

Insurance (Tables)

9 Months Ended

Jul. 31, 2020

Insurance [Abstract]

Schedule of Insurance Related Balances and Activity

Insurance Related Balances and Activity


(in millions)	July 31, 2020		October 31, 2019
Insurance claim reserves, excluding medical and dental	$	521.0	$	507.8
Medical and dental claim reserves	14.9		7.2
Insurance recoverables	69.2		64.5

Schedule of Instruments Used to Collateralize Insurance Obligations

Instruments Used to Collateralize Our Insurance Obligations


(in millions)	July 31, 2020		October 31, 2019
Standby letters of credit	$	143.6	$	141.0
Surety bonds	85.2		90.8
Restricted insurance deposits	0.7		0.8
Total	$	229.5	$	232.6

Credit Facility (Tables)

9 Months Ended

Jul. 31, 2020

Debt Disclosure [Abstract]

Schedule of Credit Facility Information

Credit Facility Information


(in millions)	July 31, 2020		October 31, 2019
Current portion of long-term debt
Gross term loan	$	90.0	$	60.0
Unamortized deferred financing costs	(3.4)		(2.8)
Current portion of term loan	$	86.6	$	57.2

Long-term debt
Gross term loan	$	590.0	$	680.0
Unamortized deferred financing costs	(3.0)		(4.1)
Total noncurrent portion of term loan	586.9		675.9
Revolving line of credit⁽¹⁾⁽²⁾	77.3		68.4
Long-term debt	$	664.2	$	744.2

⁽¹⁾ Standby letters of credit amounted to $153.1 million at July 31, 2020.

⁽²⁾At July 31, 2020, we had borrowing capacity of $563.7 million, reflecting covenant restrictions.

Schedule of Term Loan Maturities

As of July 31, 2020, the following principal payments are required under the term loan.


(in millions)	2020		2021		2022
Debt maturities	$	—	$	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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Common Stock (Tables)

9 Months Ended

Jul. 31, 2020

Equity [Abstract]

Schedule of Share Repurchase Activity

Repurchase Activity


	Nine Months Ended
(in millions, except per share amounts)	July 31, 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)

9 Months Ended

Jul. 31, 2020

Segment Reporting [Abstract]

Schedule of Financial Information by Reportable Segment

Our current reportable segments consist of B&I, T&M, Education, Aviation, and Technical Solutions, as further described below.


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.
Education			Education delivers janitorial, custodial, landscaping and grounds, facilities engineering, and parking services for public school districts, private schools, colleges, and universities.
Aviation			Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation.
Technical Solutions			Technical Solutions specializes in 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 July 31,						Nine Months Ended July 31,
(in millions)	2020		2019		2020		2019
Revenues
Business & Industry	$	756.9	$	807.9	$	2,363.4	$	2,444.5
Technology & Manufacturing	243.2		226.9		710.8		687.3
Education	188.6		215.4		596.6		633.6
Aviation	116.4		263.3		539.9		765.8
Technical Solutions	119.2		165.7		383.5		417.7
Elimination of inter-segment revenues	(30.1)		(31.3)		(91.1)		(98.3)
	$	1,394.1	$	1,647.9	$	4,503.0	$	4,850.6
Operating profit (loss)
Business & Industry	$	71.6	$	45.3	$	169.1	$	131.2
Technology & Manufacturing	24.5		17.0		60.9		54.4
Education⁽¹⁾	18.3		12.6		(56.3)		33.4
Aviation⁽²⁾	(8.2)		8.6		(63.0)		17.2
Technical Solutions⁽³⁾	13.2		17.9		13.1		35.3
Government Services	—		—		—		(0.1)
Corporate	(24.8)		(43.5)		(97.7)		(127.1)
Adjustment for income from unconsolidated affiliates, included in Aviation	(0.2)		(0.7)		(2.0)		(2.4)
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions	(0.8)		0.1		(1.2)		0.1
	93.6		57.3		22.8		142.1
Income from unconsolidated affiliates	0.2		0.7		2.0		2.4
Interest expense	(13.8)		(12.9)		(34.5)		(39.2)
Income (loss) from continuing operations before income taxes	$	80.0	$	45.0	$	(9.7)	$	105.3

⁽¹⁾ Reflects impairment charges totaling $99.3 million on goodwill during the nine months ended July 31, 2020.

⁽²⁾Reflects impairment charges totaling $61.1 million on goodwill and intangible assets during the nine months ended July 31, 2020.

⁽³⁾ Reflects impairment charges totaling $12.4 million on goodwill and intangible assets during the nine months ended July 31, 2020.

The Company and Nature of Operations - Narrative (Details)	9 Months Ended
	Jul. 31, 2020 industry_group segment
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 Significant Accounting Policies - Narrative (Details)	Jul. 31, 2020 USD ($)	Oct. 31, 2019 USD ($)
Unusual or Infrequent Item, or Both [Line Items]
Accrued compensation	$ 153,700,000	$ 189,300,000
Pandemic
Unusual or Infrequent Item, or Both [Line Items]
Percent of health insurance premiums paid by employer	1
Accrued compensation	$ 0

Basis of Presentation and Significant Accounting Policies - Management Reimbursement Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Segment Reporting Information [Line Items]
Parking facility management fee revenue	$ 1,394.1	$ 1,647.9	$ 4,503.0	$ 4,850.6
Management Reimbursement Revenue
Segment Reporting Information [Line Items]
Parking facility management fee revenue	57.4	95.3	239.3	283.2
Management Reimbursement Revenue \| Business & Industry
Segment Reporting Information [Line Items]
Parking facility management fee revenue	42.6	70.9	178.0	211.2
Management Reimbursement Revenue \| Aviation
Segment Reporting Information [Line Items]
Parking facility management fee revenue	$ 14.8	$ 24.4	$ 61.4	$ 72.0

Basis of Presentation and Significant Accounting Policies - Impact of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Millions	Jul. 31, 2020	Nov. 01, 2019	Oct. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets	$ 156.6	$ 167.5
Current portion of lease liabilities	37.2	36.3
Other accrued liabilities	174.1	155.2	$ 158.2
Long-term lease liabilities	141.1	154.2
Other noncurrent liabilities	$ 118.3	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		(3.0)
Long-term lease liabilities		154.2
Other noncurrent liabilities		$ (20.0)

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Revenue from External Customer [Line Items]
Revenues	$ 1,394.1	$ 1,647.9	$ 4,503.0	$ 4,850.6
Operating Segments
Revenue from External Customer [Line Items]
Revenues	1,424.2	1,679.3	4,594.1	4,948.9
Operating Segments \| Business & Industry
Revenue from External Customer [Line Items]
Revenues	756.9	807.9	2,363.4	2,444.5
Operating Segments \| Technology & Manufacturing
Revenue from External Customer [Line Items]
Revenues	243.2	226.9	710.8	687.3
Operating Segments \| Education
Revenue from External Customer [Line Items]
Revenues	188.6	215.4	596.6	633.6
Operating Segments \| Aviation
Revenue from External Customer [Line Items]
Revenues	116.4	263.3	539.9	765.8
Operating Segments \| Technical Solutions
Revenue from External Customer [Line Items]
Revenues	119.2	165.7	383.5	417.7
Operating Segments \| Janitorial
Revenue from External Customer [Line Items]
Revenues	986.6	985.0	2,980.5	2,953.4
Operating Segments \| Janitorial \| Business & Industry
Revenue from External Customer [Line Items]
Revenues	596.9	576.9	1,786.9	1,738.2
Operating Segments \| Janitorial \| Technology & Manufacturing
Revenue from External Customer [Line Items]
Revenues	197.1	184.2	573.1	554.4
Operating Segments \| Janitorial \| Education
Revenue from External Customer [Line Items]
Revenues	165.7	191.4	529.4	566.8
Operating Segments \| Janitorial \| Aviation
Revenue from External Customer [Line Items]
Revenues	26.9	32.4	91.2	94.0
Operating Segments \| Janitorial \| Technical Solutions
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Parking
Revenue from External Customer [Line Items]
Revenues	123.3	220.1	519.4	658.8
Operating Segments \| Parking \| Business & Industry
Revenue from External Customer [Line Items]
Revenues	67.7	129.5	290.7	383.3
Operating Segments \| Parking \| Technology & Manufacturing
Revenue from External Customer [Line Items]
Revenues	8.5	6.3	24.0	19.6
Operating Segments \| Parking \| Education
Revenue from External Customer [Line Items]
Revenues	0.2	0.7	1.5	2.3
Operating Segments \| Parking \| Aviation
Revenue from External Customer [Line Items]
Revenues	46.9	83.6	203.1	253.7
Operating Segments \| Parking \| Technical Solutions
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Facility Services
Revenue from External Customer [Line Items]
Revenues	158.8	179.6	489.7	554.7
Operating Segments \| Facility Services \| Business & Industry
Revenue from External Customer [Line Items]
Revenues	92.2	101.4	285.5	322.5
Operating Segments \| Facility Services \| Technology & Manufacturing
Revenue from External Customer [Line Items]
Revenues	37.6	36.5	113.7	113.2
Operating Segments \| Facility Services \| Education
Revenue from External Customer [Line Items]
Revenues	22.7	23.3	65.7	64.6
Operating Segments \| Facility Services \| Aviation
Revenue from External Customer [Line Items]
Revenues	6.3	18.5	24.8	54.5
Operating Segments \| Facility Services \| Technical Solutions
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Building & Energy Solutions
Revenue from External Customer [Line Items]
Revenues	119.2	165.7	383.5	417.7
Operating Segments \| Building & Energy Solutions \| Business & Industry
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Building & Energy Solutions \| Technology & Manufacturing
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Building & Energy Solutions \| Education
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Building & Energy Solutions \| Aviation
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Building & Energy Solutions \| Technical Solutions
Revenue from External Customer [Line Items]
Revenues	119.2	165.7	383.5	417.7
Operating Segments \| Airline Services
Revenue from External Customer [Line Items]
Revenues	36.3	128.9	221.0	364.2
Operating Segments \| Airline Services \| Business & Industry
Revenue from External Customer [Line Items]
Revenues	0.1	0.1	0.3	0.5
Operating Segments \| Airline Services \| Technology & Manufacturing
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.1
Operating Segments \| Airline Services \| Education
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Operating Segments \| Airline Services \| Aviation
Revenue from External Customer [Line Items]
Revenues	36.2	128.8	220.7	363.7
Operating Segments \| Airline Services \| Technical Solutions
Revenue from External Customer [Line Items]
Revenues	0.0	0.0	0.0	0.0
Intersegment Eliminations
Revenue from External Customer [Line Items]
Revenues	$ (30.1)	$ (31.3)	$ (91.1)	$ (98.3)

Revenues - Remaining Performance Obligations Narrative (Details) $ in Millions	Jul. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, amount	$ 181.5
Revenue, remaining performance obligation, percentage	83.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	12 months

Revenues - Contract with Customer, Asset and Liability (Details) - USD ($)	9 Months Ended
	Jul. 31, 2020	Oct. 31, 2019
Revenue from Contract with Customer [Abstract]
Billed trade receivables	$ 829,300,000	$ 978,700,000
Unbilled trade receivables	52,200,000	56,900,000
Costs incurred in excess of amounts billed	72,500,000	72,600,000
Capitalized commissions	22,600,000	$ 21,800,000
Capitalized contract price	10,600,000
Capitalized contract cost, amortization	(9,800,000)
Capitalized contract cost, impairment loss	0
Contract with Customer, Liabilities [Roll Forward]
Contract liabilities, balance at beginning of period	38,000,000.0
Additional contract liabilities	246,100,000
Recognition of deferred revenue	(241,700,000)
Contract liabilities, balance at end of period	$ 42,300,000

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Jul. 31, 2020	Jul. 31, 2020
Lessee, Lease, Description [Line Items]
Lease, Cost	$ 22.3	$ 75.9
Operating lease, cost	21.0	72.2
Finance lease, cost	$ 1.3	$ 3.7
Minimum
Lessee, Lease, Description [Line Items]
Lease term		1 year
Maximum
Lessee, Lease, Description [Line Items]
Lease term		30 years

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions	Jul. 31, 2020	Nov. 01, 2019
Lease assets
Operating lease, right-of-use asset	$ 156.6	$ 167.5
Finance lease, right-of-use asset	6.8
Total lease assets	163.4
Current liabilities
Operating leases	37.2	36.3
Finance leases	4.1
Noncurrent liabilities
Operating leases	141.1	$ 154.2
Finance leases	1.8
Total lease liabilities	184.2
Finance leases, accumulated depreciation	$ 13.9

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Leases - Lease Cost (Details) - USD ($) $ in Millions	Jul. 31, 2020	Jul. 31, 2020
Operating lease costs:
Operating lease, cost	$ 21.0	$ 72.2
Finance lease costs:
Operating expenses(4)	1.2	3.3
Interest expense(5)	0.1	0.4
Total lease costs	22.3	75.9
Short-term lease costs	9.5	35.9
Variable lease costs	0.0	3.0
Total short-term and variable lease costs	9.5	38.9
Operating expenses(1)(2)
Operating lease costs:
Operating lease, cost	14.8	52.9
Selling, general and administrative expenses(3)
Operating lease costs:
Operating lease, cost	$ 6.2	$ 19.3

Leases - Maturities of Operating and Finance Lease Liabilities After Adoption of 842 (Details) $ in Millions	Jul. 31, 2020 USD ($)
Operating Lease Liabilities
Remainder of fiscal 2020	$ 11.3
Fiscal 2021	42.4
Fiscal 2022	35.0
Fiscal 2023	29.5
Fiscal 2024	24.0
Thereafter	61.4
Total lease payments	203.7
Less: imputed interest	25.4
Present value of lease liabilities	178.3
Finance Lease Liabilities
Remainder of fiscal 2020	1.0
Fiscal 2021	3.3
Fiscal 2022	1.7
Fiscal 2023	0.9
Fiscal 2024	0.0
Thereafter	0.0
Total lease payments	6.9
Less: imputed interest	1.0
Present value of lease liabilities	5.9
Total
Remainder of fiscal 2020	12.3
Fiscal 2021	45.7
Fiscal 2022	36.7
Fiscal 2023	30.4
Fiscal 2024	24.0
Thereafter	61.4
Total lease payments	210.5
Less: imputed interest	26.3
Present value of lease liabilities	$ 184.2

Leases - Weighted Average Remaining Lease Term and Discount Rate (Details)	Jul. 31, 2020
Weighted-average remaining lease term (years)
Operating leases	6 years 1 month 6 days
Finance leases	2 years 2 months 12 days
Weighted-average discount rate
Operating leases	4.11%
Finance leases	4.50%

Leases - Supplemental Cash and Non-cash Information (Details) $ in Millions	9 Months Ended
	Jul. 31, 2020 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 34.5
Operating cash flows from finance leases	0.4
Financing cash flows from finance leases	2.7
Lease assets obtained in exchange for new operating lease liabilities(1)	$ 15.4

Leases - Maturities of Operating and Finance Lease Liabilities Before Adoption of 842 (Details) $ in Millions	Oct. 31, 2019 USD ($)
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	0.0
Thereafter	0.0
Total capital leases	7.5
Total
Fiscal 2020	45.9
Fiscal 2021	38.0
Fiscal 2022	31.6
Fiscal 2023	26.2
Fiscal 2024	20.5
Thereafter	51.8
Total(2)	214.0
Sublease rental income	$ 15.8

Restructuring and Related Costs - Narrative (Details) $ in Millions	Jul. 31, 2020 USD ($)
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 Costs - Restructuring and Related Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Restructuring Reserve [Roll Forward]
Balance, beginning of period			$ 7.0
Costs Recognized	$ 0.0	$ 2.0	5.0	$ 8.5
Payments			(7.6)
Non-Cash Items			(2.7)
Balance, end of period	1.7		1.7
Employee severance
Restructuring Reserve [Roll Forward]
Balance, beginning of period			3.0
Costs Recognized			0.3
Payments			(1.8)
Non-Cash Items			0.0
Balance, end of period	1.5		1.5
External support fees
Restructuring Reserve [Roll Forward]
Balance, beginning of period			0.5
Costs Recognized			1.4
Payments			(1.9)
Non-Cash Items			0.0
Balance, end of period	0.0		0.0
Other project fees
Restructuring Reserve [Roll Forward]
Balance, beginning of period			0.7
Costs Recognized			3.3
Payments			(3.7)
Non-Cash Items			(0.2)
Balance, end of period	0.2		0.2
Lease exit costs and asset impairment
Restructuring Reserve [Roll Forward]
Balance, beginning of period			2.7
Costs Recognized			0.0
Payments			(0.2)
Non-Cash Items			(2.5)
Balance, end of period	$ 0.0		$ 0.0

Restructuring and Related Costs - Cumulative Restructuring and Related Charges (Details) $ in Millions	Jul. 31, 2020 USD ($)
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	30.0
Employee Severance
Restructuring Cost and Reserve [Line Items]
Cumulative charges	31.3
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	13.0
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	0.0
Asset Impairment \| 2020 Vision Restructuring Program
Restructuring Cost and Reserve [Line Items]
Cumulative charges	$ 5.2

Net Income (Loss) Per Common Share - Calculations of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items]
Income (loss) from continuing operations	$ 56.0	$ 36.5	$ (52.9)	$ 79.4
Income from discontinued operations, net of taxes	0.0	0.2	0.1	0.0
Net income (loss)	$ 56.0	$ 36.8	$ (52.8)	$ 79.4
Weighted-average common and common equivalent shares outstanding — Basic (in shares)	66.9	66.6	66.9	66.5
Effect of dilutive securities(1)
Weighted-average common and common equivalent shares outstanding — Diluted (in shares)	67.2	67.0	66.9	66.8
Net income (loss) per common share — Basic
Income (loss) from continuing operations (in usd per share)	$ 0.84	$ 0.55	$ (0.79)	$ 1.19
Income (loss) from discontinued operations (in usd per share)	0	0	0	0
Net income (loss) (in usd per share)	0.84	0.55	(0.79)	1.19
Net income (loss) per common share — Diluted
Income (loss) from continuing operations (in usd per share)	0.83	0.55	(0.79)	1.19
Income (loss) from discontinued operations (in usd per share)	0	0	0	0
Net income (loss) (in usd per share)	$ 0.83	$ 0.55	$ (0.79)	$ 1.19
Restricted stock units
Effect of dilutive securities(1)
Effect of dilutive securities (in shares)	0.1	0.2	0.0	0.2
Stock options
Effect of dilutive securities(1)
Effect of dilutive securities (in shares)	0.1	0.1	0.0	0.1
Performance shares
Effect of dilutive securities(1)
Effect of dilutive securities (in shares)	0.1	0.0	0.0	0.0

Net Income (Loss) Per Common Share - Anti-Dilutive Outstanding Stock Awards Issued Under Share-Based Compensation Plans (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Earnings Per Share [Abstract]
Anti-dilutive (in shares)	0.4	0.1	0.6	0.3

Fair Value of Financial Instruments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details)	3 Months Ended	9 Months Ended
	Jan. 31, 2020 USD ($)	Jul. 31, 2020 USD ($) Security	Jul. 31, 2019 USD ($)	Oct. 31, 2019 USD ($) 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	$ 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		229,400,000		$ 58,500,000
Insurance deposits		700,000		800,000
Assets held in funded deferred compensation plan		2,600,000		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		757,300,000		808,400,000
Interest rate swap liabilities		18,800,000		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		5,000,000.0
Investment in auction rate securities, fair value		$ 0		5,000,000.0
Auction Rate Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments in auction rate securities				$ 5,000,000.0
Number of auction rate securities \| Security		0		1
Investment in auction rate securities, fair value				$ 5,000,000.0
Proceeds from redemption of auction rate security	$ 5,000,000.0

Fair Value of Financial Instruments - Non-Financial Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($)	3 Months Ended	9 Months Ended
	Jul. 31, 2020	Jul. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill, impairment loss	$ 0	$ 163,800,000
Impairment of intangible assets	$ 0
Education
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill, impairment loss		99,300,000
Aviation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill, impairment loss		55,500,000
Impairment of intangible assets		5,600,000
Impairment of intangible assets, gross		(13,800,000)
Impairment of intangible assets, accumulated amortization		8,200,000
Technical Solutions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill, impairment loss		9,000,000.0
Impairment of intangible assets		3,400,000
Impairment of intangible assets, gross		(8,700,000)
Impairment of intangible assets, accumulated amortization		$ 5,300,000

Fair Value of Financial Instruments - Discount Rate (Details) - Discount Rates	Jul. 31, 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

Insurance - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	9 Months Ended
Insurance - Narrative (Details) - USD ($) $ in Millions	Jul. 31, 2020	Apr. 30, 2020	Jul. 31, 2020	Jul. 31, 2019
Schedule of Other Liabilities [Line Items]
Insurance policy coverage, general and automobile liability losses	$ 200.0		$ 200.0
Insurance policy coverage, property damage	75.0		75.0
Decrease in total reserve claims	8.5	$ 6.6	15.1
Change in reserves for insurance claims				$ 2.0
Minimum
Schedule of Other Liabilities [Line Items]
Self insurance retention amount per-claim	1.0		1.0
Primary policy limit	1.0		1.0
Maximum
Schedule of Other Liabilities [Line Items]
Self insurance retention amount per-claim	1.5		1.5
Primary policy limit	5.0		5.0
Self insurance retention amount per-claim, medical plan	$ 0.5		$ 0.5

Insurance - Insurance Related Balances and Activity (Details) - USD ($) $ in Millions	Jul. 31, 2020	Oct. 31, 2019
Liability for Claims and Claims Adjustment Expense [Line Items]
Insurance recoverables	$ 69.2	$ 64.5
Insurance claim reserves, excluding medical and dental
Liability for Claims and Claims Adjustment Expense [Line Items]
Insurance claim reserves	521.0	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 Collateralize Insurance Obligations (Details) - USD ($) $ in Millions	Jul. 31, 2020	Oct. 31, 2019
Letters Of Credit [Line Items]
Instruments used to collateralize insurance obligations	$ 229.5	$ 232.6
Standby letters of credit
Letters Of Credit [Line Items]
Instruments used to collateralize insurance obligations	143.6	141.0
Surety bonds
Letters Of Credit [Line Items]
Instruments used to collateralize insurance obligations	85.2	90.8
Restricted insurance deposits
Letters Of Credit [Line Items]
Instruments used to collateralize insurance obligations	$ 0.7	$ 0.8

Credit Facility - Narrative (Details)			1 Months Ended
Credit Facility - Narrative (Details)	May 28, 2020 USD ($)	Sep. 01, 2017 USD ($)	Mar. 31, 2020 USD ($)	Jul. 31, 2020	May 27, 2020	Sep. 01, 2018 USD ($)	Aug. 31, 2017 USD ($)
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							$ 800,000,000.0
Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, term		5 years
Fixed charge coverage ratio	1.00				1.25
Debt instrument, covenant, liquidity required, minimum	$ 250,000,000.0
Debt instrument, covenant, cash and cash equivalents, maximum	250,000,000
Weighted average interest rate				3.42%
Deferred financing costs	$ 4,600,000	$ 18,700,000
Credit Facility \| Covenant Period, Quarter Ended October 2020
Line of Credit Facility [Line Items]
Leverage ratio	1.00				6.50
Credit Facility \| Covenant Period, Quarter Ending October 2022
Line of Credit Facility [Line Items]
Leverage ratio	1.00				4.00
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		800,000,000.0
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		900,000,000.0
Borrowing capacity after initial year of term						$ 800,000,000.0
Credit Facility \| Standby Letters of Credit
Line of Credit Facility [Line Items]
Line of credit facility, borrowing capacity		300,000,000.0
Credit Facility \| Swing Line Loan
Line of Credit Facility [Line Items]
Line of credit facility, borrowing capacity		$ 75,000,000.0
Credit Facility \| Minimum \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Commitment fee percentage on unused portion of the Facility	0.20%	0.20%
Credit Facility \| Maximum \| Revolving Credit Facility
Line of Credit Facility [Line Items]
Commitment fee percentage on unused portion of the Facility	0.45%	0.35%
Credit Facility \| Eurodollar \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%	1.00%
Credit Facility \| Eurodollar \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.75%	2.25%
Credit Facility \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.00%	0.00%
Credit Facility \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%	1.25%

Credit Facility - Credit Facility Information (Details) - USD ($) $ in Millions	Jul. 31, 2020	Oct. 31, 2019
Current portion of long-term debt
Gross term loan	$ 90.0	$ 60.0
Unamortized deferred financing costs	(3.4)	(2.8)
Current portion of term loan	86.6	57.2
Long-term debt
Gross term loan	590.0	680.0
Unamortized deferred financing costs	(3.0)	(4.1)
Total noncurrent portion of term loan	586.9	675.9
Line of credit	77.3	68.4
Long-term debt	664.2	$ 744.2
Standby letters of credit	153.1
Borrowing capacity	$ 563.7

Credit Facility - Term Loan Maturities (Details) $ in Millions	3 Months Ended	9 Months Ended
	Jul. 31, 2020 USD ($)	Jul. 31, 2020 USD ($)
Debt Instrument [Line Items]
Debt instrument, periodic payment, principal	$ 30.0	$ 60.0
Term Loan
Term Loan Maturities
Debt maturities, 2020	0.0	0.0
Debt maturities, 2021	120.0	120.0
Debt maturities, 2022	$ 560.0	$ 560.0

Credit Facility - Interest Rate Swaps (Details)	Nov. 01, 2018 USD ($)
Interest Rate Swap, Maturity April 30, 2021
Line of Credit Facility [Line Items]
Notional Amount	$ 90,000,000.0
Fixed Interest Rate	2.83%
Interest Rate Swap, Maturity October 31, 2021
Line of Credit Facility [Line Items]
Notional Amount	$ 90,000,000.0
Fixed Interest Rate	2.84%
Interest Rate Swap, Maturity April 30, 2022
Line of Credit Facility [Line Items]
Notional Amount	$ 130,000,000.0
Fixed Interest Rate	2.86%
Interest Rate Swap, Maturity September 1, 2022
Line of Credit Facility [Line Items]
Notional Amount	$ 130,000,000.0
Fixed Interest Rate	2.84%

Credit Facility - Interest Rate Swaps Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019	Oct. 31, 2019
Line of Credit Facility [Line Items]
Interest expense	$ 13.8	$ 12.9	$ 34.5	$ 39.2
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net	(4.1)		(4.1)
Tax to be reclassified during next 12 months	(1.4)		(1.4)
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			(4.5)		$ 2.2
Tax related to amounts in accumulated other comprehensive loss			(1.3)		$ 1.2
Interest expense	(1.2)	1.0	(3.6)	3.1
Interest expense, tax	$ 0.5	$ 0.4	$ 1.4	$ 1.2

Commitments and Contingencies - Narrative (Details)	Sep. 20, 2018 subclass	Jul. 31, 2020 USD ($)
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		$ 635,000,000.0
Energy Savings Contracts
Loss Contingencies [Line Items]
Guarantee obligation		178,900,000
Performance Guarantee \| Joint Venture
Loss Contingencies [Line Items]
Total guarantees		30,000,000
Minimum
Loss Contingencies [Line Items]
Amount of reasonably possible loss		0
Maximum
Loss Contingencies [Line Items]
Amount of reasonably possible loss		11,000,000
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		$ 6,300,000

Common Stock - Narrative (Details) - 2019 Share Repurchase Program - USD ($)	Jul. 31, 2020	Dec. 18, 2019
Equity, Class of Treasury Stock [Line Items]
Share repurchase program authorized amount		$ 150,000,000.0
Remaining authorized repurchase amount	$ 144,900,000

Common Stock - Repurchase Activity (Details) $ / shares in Units, shares in Millions, $ in Millions	9 Months Ended
	Jul. 31, 2020 USD ($) $ / shares shares
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 (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate (percent)	29.90%	18.90%	(444.60%)	24.50%
Nondeductible impairment			$ 163.8
Effective income tax rate, excluding impairment (percent)			28.00%
Income tax provision	$ (24.0)	$ (8.5)	$ (43.2)	$ (25.8)
Income tax benefit related to deduction for energy efficiency	$ (0.8)		(1.2)
Discrete tax benefit from expiring statute of limitations		(2.0)		(2.0)
Tax benefit from certain credits		$ (0.5)
Increase (decrease) in tax credits, work opportunity tax credit			1.9	1.3
Unrecognized tax benefits, increase resulting from current period tax positions				1.4
Income tax benefit related to vesting of share-based compensation awards				$ (1.1)
Social security tax, employer, deferral, CARES Act			$ 58.0

Segment Information - Financial Information by Reportable Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jul. 31, 2020	Jul. 31, 2019	Jul. 31, 2020	Jul. 31, 2019
Revenues
Revenues	$ 1,394,100,000	$ 1,647,900,000	$ 4,503,000,000.0	$ 4,850,600,000
Operating profit (loss)
Operating profit (loss)	93,600,000	57,300,000	22,800,000	142,100,000
Income from unconsolidated affiliates	200,000	700,000	2,000,000.0	2,400,000
Interest expense	(13,800,000)	(12,900,000)	(34,500,000)	(39,200,000)
Income (loss) from continuing operations before income taxes	80,000,000.0	45,000,000.0	(9,700,000)	105,300,000
Impairment loss	0	0	172,800,000	0
Goodwill, impairment loss	0		163,800,000
Operating Segments
Revenues
Revenues	1,424,200,000	1,679,300,000	4,594,100,000	4,948,900,000
Elimination of inter-segment revenues
Revenues
Revenues	(30,100,000)	(31,300,000)	(91,100,000)	(98,300,000)
Corporate
Operating profit (loss)
Operating profit (loss)	(24,800,000)	(43,500,000)	(97,700,000)	(127,100,000)
Segment Reconciling Items
Operating profit (loss)
Income from unconsolidated affiliates	(200,000)	(700,000)	(2,000,000.0)	(2,400,000)
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions	(800,000)	100,000	(1,200,000)	100,000
Business & Industry \| Operating Segments
Revenues
Revenues	756,900,000	807,900,000	2,363,400,000	2,444,500,000
Operating profit (loss)
Operating profit (loss)	71,600,000	45,300,000	169,100,000	131,200,000
Technology & Manufacturing \| Operating Segments
Revenues
Revenues	243,200,000	226,900,000	710,800,000	687,300,000
Operating profit (loss)
Operating profit (loss)	24,500,000	17,000,000.0	60,900,000	54,400,000
Education
Operating profit (loss)
Goodwill, impairment loss			99,300,000
Education \| Operating Segments
Revenues
Revenues	188,600,000	215,400,000	596,600,000	633,600,000
Operating profit (loss)
Operating profit (loss)	18,300,000	12,600,000	(56,300,000)	33,400,000
Aviation
Operating profit (loss)
Impairment loss			61,100,000
Goodwill, impairment loss			55,500,000
Aviation \| Operating Segments
Revenues
Revenues	116,400,000	263,300,000	539,900,000	765,800,000
Operating profit (loss)
Operating profit (loss)	(8,200,000)	8,600,000	(63,000,000.0)	17,200,000
Technical Solutions
Operating profit (loss)
Impairment loss			12,400,000
Goodwill, impairment loss			9,000,000.0
Technical Solutions \| Operating Segments
Revenues
Revenues	119,200,000	165,700,000	383,500,000	417,700,000
Operating profit (loss)
Operating profit (loss)	13,200,000	17,900,000	13,100,000	35,300,000
Government Services \| Operating Segments
Operating profit (loss)
Operating profit (loss)	$ 0	$ 0	$ 0	$ (100,000)