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Share Name | Share Symbol | Market | Type |
---|---|---|---|
ABM Industries Inc | NYSE:ABM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.10 | 2.52% | 44.80 | 45.25 | 43.88 | 43.88 | 650,437 | 00:57:14 |
|
☑
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
94-1369354
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
☑
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
Title of each class
|
|
Trading Symbol
|
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
|
ABM
|
|
New York Stock Exchange
|
|
FORWARD-LOOKING STATEMENTS
|
|
PART I. FINANCIAL INFORMATION
|
|
Item 1. Consolidated Financial Statements
|
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
|
Item 4. Controls and Procedures
|
|
PART II. OTHER INFORMATION
|
|
Item 1. Legal Proceedings
|
|
Item 1A. Risk Factors
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Item 3. Defaults Upon Senior Securities
|
|
Item 4. Mine Safety Disclosures
|
|
Item 5. Other Information
|
|
Item 6. Exhibits
|
|
SIGNATURES
|
•
|
We may not realize the full extent of growth opportunities or potential synergies anticipated from the acquisition of GCA Services Group (“GCA”).
|
•
|
We incurred a substantial amount of debt to complete the acquisition of GCA. To service our debt we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. We also depend on the profitability of our subsidiaries to satisfy our cash needs. If we cannot generate the required cash, we may not be able to make the necessary payments required to service our indebtedness or we may be required to suspend certain discretionary payments, including our dividend.
|
•
|
Changes to our businesses, operating structure, financial reporting structure, or personnel relating to the implementation of our 2020 Vision strategic transformation initiative, together with process and technology initiatives following the acquisition of GCA, may not have the desired effects on our financial condition and results of operations.
|
•
|
Our success depends on our ability to gain profitable business despite competitive pressures and on our ability to preserve long-term client relationships.
|
•
|
Our business success depends on our ability to attract and retain qualified personnel and senior management.
|
•
|
Our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk.
|
•
|
Our international business involves risks different from those we face in the United States that could have an effect on our results of operations and financial condition.
|
•
|
Unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities.
|
•
|
We insure our insurable risks through a combination of insurance and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates of ultimate insurance losses could result in material charges against our earnings.
|
•
|
Our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss.
|
•
|
Impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations.
|
•
|
Changes in general economic conditions, including changes in energy prices, government regulations, and changing consumer preferences, could reduce the demand for facility services and, as a result, reduce our earnings and adversely affect our financial condition.
|
•
|
Our business may be materially affected by changes to fiscal and tax policies. Negative or unexpected tax consequences could adversely affect our results of operations.
|
•
|
We may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business.
|
•
|
A significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relationship to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union-organizing drives.
|
•
|
If we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock.
|
•
|
Our business may be negatively impacted by adverse weather conditions.
|
•
|
Catastrophic events, disasters, and terrorist attacks could disrupt our services.
|
•
|
Actions of activist investors could disrupt our business.
|
(in millions, except share and per share amounts)
|
July 31, 2019
|
|
October 31, 2018
|
||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
60.5
|
|
|
$
|
39.1
|
|
Trade accounts receivable, net of allowances of $22.6
and $19.2 at July 31, 2019 and October 31, 2018, respectively
|
1,061.3
|
|
|
1,014.1
|
|
||
Costs incurred in excess of amounts billed
|
68.4
|
|
|
—
|
|
||
Prepaid expenses
|
75.5
|
|
|
80.8
|
|
||
Other current assets
|
53.5
|
|
|
37.0
|
|
||
Total current assets
|
1,319.2
|
|
|
1,171.0
|
|
||
Other investments
|
15.1
|
|
|
16.3
|
|
||
Property, plant and equipment, net of accumulated depreciation of $188.7
and $153.9 at July 31, 2019 and October 31, 2018, respectively
|
147.1
|
|
|
140.1
|
|
||
Other intangible assets, net of accumulated amortization of $294.7
and $250.4 at July 31, 2019 and October 31, 2018, respectively
|
310.4
|
|
|
355.7
|
|
||
Goodwill
|
1,832.0
|
|
|
1,834.8
|
|
||
Other noncurrent assets
|
120.2
|
|
|
109.6
|
|
||
Total assets
|
$
|
3,744.0
|
|
|
$
|
3,627.5
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current portion of long-term debt, net
|
$
|
52.2
|
|
|
$
|
37.0
|
|
Trade accounts payable
|
249.0
|
|
|
221.9
|
|
||
Accrued compensation
|
165.7
|
|
|
172.1
|
|
||
Accrued taxes—other than income
|
83.6
|
|
|
56.0
|
|
||
Insurance claims
|
150.9
|
|
|
149.5
|
|
||
Income taxes payable
|
9.6
|
|
|
3.2
|
|
||
Other accrued liabilities
|
166.4
|
|
|
152.7
|
|
||
Total current liabilities
|
877.4
|
|
|
792.5
|
|
||
Long-term debt, net
|
872.2
|
|
|
902.0
|
|
||
Deferred income tax liability, net
|
31.6
|
|
|
37.8
|
|
||
Noncurrent insurance claims
|
368.0
|
|
|
360.8
|
|
||
Other noncurrent liabilities
|
75.6
|
|
|
62.9
|
|
||
Noncurrent income taxes payable
|
15.6
|
|
|
16.9
|
|
||
Total liabilities
|
2,240.4
|
|
|
2,172.9
|
|
||
Commitments and contingencies
|
|
|
|
|
|
||
Stockholders’ Equity
|
|
|
|
||||
Preferred stock, $0.01 par value; 500,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 100,000,000 shares authorized;
66,392,045 and 66,004,361 shares issued and outstanding at July 31, 2019 and October 31, 2018, respectively |
0.7
|
|
|
0.7
|
|
||
Additional paid-in capital
|
706.9
|
|
|
691.8
|
|
||
Accumulated other comprehensive loss, net of taxes
|
(24.4
|
)
|
|
(9.0
|
)
|
||
Retained earnings
|
820.5
|
|
|
771.2
|
|
||
Total stockholders’ equity
|
1,503.6
|
|
|
1,454.6
|
|
||
Total liabilities and stockholders’ equity
|
$
|
3,744.0
|
|
|
$
|
3,627.5
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
(in millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
$
|
1,647.9
|
|
|
$
|
1,624.3
|
|
|
$
|
4,850.6
|
|
|
$
|
4,793.5
|
|
Operating expenses
|
1,454.1
|
|
|
1,446.7
|
|
|
4,314.2
|
|
|
4,281.8
|
|
||||
Selling, general and administrative expenses
|
119.8
|
|
|
110.0
|
|
|
340.9
|
|
|
326.8
|
|
||||
Restructuring and related expenses
|
2.0
|
|
|
2.9
|
|
|
8.5
|
|
|
22.5
|
|
||||
Amortization of intangible assets
|
14.9
|
|
|
16.6
|
|
|
44.9
|
|
|
49.5
|
|
||||
Operating profit
|
57.3
|
|
|
48.1
|
|
|
142.1
|
|
|
112.9
|
|
||||
Income from unconsolidated affiliates
|
0.7
|
|
|
1.0
|
|
|
2.4
|
|
|
2.5
|
|
||||
Interest expense
|
(12.9
|
)
|
|
(12.9
|
)
|
|
(39.2
|
)
|
|
(41.0
|
)
|
||||
Income from continuing operations before income taxes
|
45.0
|
|
|
36.1
|
|
|
105.3
|
|
|
74.4
|
|
||||
Income tax (provision) benefit
|
(8.5
|
)
|
|
(2.4
|
)
|
|
(25.8
|
)
|
|
12.7
|
|
||||
Income from continuing operations
|
36.5
|
|
|
33.7
|
|
|
79.4
|
|
|
87.1
|
|
||||
Income (loss) from discontinued operations, net of taxes
|
0.2
|
|
|
(0.1
|
)
|
|
—
|
|
|
1.0
|
|
||||
Net income
|
36.8
|
|
|
33.6
|
|
|
79.4
|
|
|
88.1
|
|
||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps
|
(5.7
|
)
|
|
(1.2
|
)
|
|
(17.9
|
)
|
|
22.0
|
|
||||
Foreign currency translation
|
(4.6
|
)
|
|
(6.5
|
)
|
|
(2.4
|
)
|
|
(1.5
|
)
|
||||
Income tax benefit (provision)
|
1.6
|
|
|
0.3
|
|
|
4.9
|
|
|
(5.9
|
)
|
||||
Comprehensive income
|
$
|
28.0
|
|
|
$
|
26.2
|
|
|
$
|
64.0
|
|
|
$
|
102.6
|
|
Net income per common share — Basic
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.32
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
||||
Net income
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.33
|
|
Net income per common share — Diluted
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.31
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
||||
Net income
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.33
|
|
Weighted-average common and common equivalent shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
66.6
|
|
|
66.1
|
|
|
66.5
|
|
|
66.0
|
|
||||
Diluted
|
67.0
|
|
|
66.3
|
|
|
66.8
|
|
|
66.3
|
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
(in millions, except per share amounts)
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
||||||||||||
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
66.3
|
|
|
$
|
0.7
|
|
|
65.7
|
|
|
$
|
0.7
|
|
|
66.0
|
|
|
$
|
0.7
|
|
|
65.5
|
|
|
$
|
0.7
|
|
Stock issued under employee stock purchase and share-based compensation plans
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Balance, end of period
|
|
66.4
|
|
|
0.7
|
|
|
65.8
|
|
|
0.7
|
|
|
66.4
|
|
|
0.7
|
|
|
65.8
|
|
|
0.7
|
|
||||
Additional Paid-in Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
|
700.6
|
|
|
|
|
683.1
|
|
|
|
|
691.8
|
|
|
|
|
675.2
|
|
||||||||
Stock issued under employee stock purchase and share-based compensation plans, net
|
|
|
|
1.5
|
|
|
|
|
0.5
|
|
|
|
|
1.5
|
|
|
|
|
0.2
|
|
||||||||
Share-based compensation expense
|
|
|
|
4.8
|
|
|
|
|
4.8
|
|
|
|
|
13.6
|
|
|
|
|
13.1
|
|
||||||||
Balance, end of period
|
|
|
|
706.9
|
|
|
|
|
688.3
|
|
|
|
|
706.9
|
|
|
|
|
688.3
|
|
||||||||
Accumulated Other Comprehensive (Loss) Income, Net of Taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
|
(15.7
|
)
|
|
|
|
1.6
|
|
|
|
|
(9.0
|
)
|
|
|
|
(20.3
|
)
|
||||||||
Other comprehensive (loss) income
|
|
|
|
(8.7
|
)
|
|
|
|
(7.4
|
)
|
|
|
|
(15.4
|
)
|
|
|
|
14.6
|
|
||||||||
Balance, end of period
|
|
|
|
(24.4
|
)
|
|
|
|
(5.7
|
)
|
|
|
|
(24.4
|
)
|
|
|
|
(5.7
|
)
|
||||||||
Retained Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, beginning of period
|
|
|
|
795.9
|
|
|
|
|
751.2
|
|
|
|
|
771.2
|
|
|
|
|
720.1
|
|
||||||||
Net income
|
|
|
|
36.8
|
|
|
|
|
33.6
|
|
|
|
|
79.4
|
|
|
|
|
88.1
|
|
||||||||
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock ($0.180, $0.175, $0.540, and $0.525 per share)
|
|
|
|
(11.9
|
)
|
|
|
|
(11.5
|
)
|
|
|
|
(35.8
|
)
|
|
|
|
(34.5
|
)
|
||||||||
Stock issued under share-based compensation plans
|
|
|
|
(0.1
|
)
|
|
|
|
(0.1
|
)
|
|
|
|
(0.8
|
)
|
|
|
|
(0.5
|
)
|
||||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2014-09
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
6.5
|
|
|
|
|
—
|
|
||||||||
Balance, end of period
|
|
|
|
820.5
|
|
|
|
|
773.2
|
|
|
|
|
820.5
|
|
|
|
|
773.2
|
|
||||||||
Total Stockholders’ Equity
|
|
|
|
$
|
1,503.6
|
|
|
|
|
$
|
1,456.4
|
|
|
|
|
$
|
1,503.6
|
|
|
|
|
$
|
1,456.4
|
|
|
Nine Months Ended July 31,
|
||||||
(in millions)
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net income
|
$
|
79.4
|
|
|
$
|
88.1
|
|
Income from discontinued operations, net of taxes
|
—
|
|
|
(1.0
|
)
|
||
Income from continuing operations
|
79.4
|
|
|
87.1
|
|
||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities of continuing operations
|
|
|
|
||||
Depreciation and amortization
|
81.4
|
|
|
86.1
|
|
||
Proceeds from termination of interest rate swaps
|
—
|
|
|
25.9
|
|
||
Deferred income taxes
|
(3.8
|
)
|
|
(19.5
|
)
|
||
Share-based compensation expense
|
13.6
|
|
|
13.1
|
|
||
Provision for bad debt
|
5.0
|
|
|
4.5
|
|
||
Discount accretion on insurance claims
|
0.6
|
|
|
0.6
|
|
||
(Gain) loss on sale of assets
|
(0.1
|
)
|
|
0.5
|
|
||
Income from unconsolidated affiliates
|
(2.4
|
)
|
|
(2.5
|
)
|
||
Distributions from unconsolidated affiliates
|
3.6
|
|
|
0.1
|
|
||
Changes in operating assets and liabilities, net of effects of acquisitions
|
|
|
|
||||
Trade accounts receivable and costs incurred in excess of amounts billed
|
(120.6
|
)
|
|
(12.6
|
)
|
||
Prepaid expenses and other current assets
|
(16.1
|
)
|
|
(7.1
|
)
|
||
Other noncurrent assets
|
6.7
|
|
|
14.5
|
|
||
Trade accounts payable and other accrued liabilities
|
36.7
|
|
|
9.0
|
|
||
Insurance claims
|
8.0
|
|
|
12.7
|
|
||
Income taxes payable
|
13.7
|
|
|
(5.0
|
)
|
||
Other noncurrent liabilities
|
8.3
|
|
|
(1.0
|
)
|
||
Total adjustments
|
34.6
|
|
|
119.3
|
|
||
Net cash provided by operating activities of continuing operations
|
114.0
|
|
|
206.4
|
|
||
Net cash provided by operating activities of discontinued operations
|
—
|
|
|
1.0
|
|
||
Net cash provided by operating activities
|
114.0
|
|
|
207.4
|
|
||
Cash flows from investing activities
|
|
|
|
||||
Additions to property, plant and equipment
|
(44.4
|
)
|
|
(37.3
|
)
|
||
Proceeds from sale of assets
|
0.3
|
|
|
0.7
|
|
||
Adjustments to purchase and sale of business
|
—
|
|
|
(1.9
|
)
|
||
Proceeds from redemption of auction rate security
|
—
|
|
|
2.9
|
|
||
Investments in unconsolidated affiliates
|
—
|
|
|
(0.6
|
)
|
||
Net cash used in investing activities
|
(44.1
|
)
|
|
(36.3
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Proceeds and (taxes withheld) from issuance of share-based compensation awards, net
|
0.7
|
|
|
(0.3
|
)
|
||
Dividends paid
|
(35.8
|
)
|
|
(34.5
|
)
|
||
Deferred financing costs paid
|
—
|
|
|
(0.1
|
)
|
||
Borrowings from credit facility
|
1,219.9
|
|
|
887.0
|
|
||
Repayment of borrowings from credit facility
|
(1,236.8
|
)
|
|
(1,042.1
|
)
|
||
Changes in book cash overdrafts
|
3.4
|
|
|
1.1
|
|
||
Financing of energy savings performance contracts
|
4.9
|
|
|
3.5
|
|
||
Repayment of capital lease obligations
|
(2.7
|
)
|
|
(2.3
|
)
|
||
Net cash used in financing activities
|
(46.4
|
)
|
|
(187.7
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(2.1
|
)
|
|
(0.2
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
21.5
|
|
|
(16.8
|
)
|
||
Cash and cash equivalents at beginning of year
|
39.1
|
|
|
62.8
|
|
||
Cash and cash equivalents at end of period
|
$
|
60.5
|
|
|
$
|
46.0
|
|
|
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Business & Industry
|
$
|
70.9
|
|
|
$
|
69.7
|
|
|
$
|
211.2
|
|
|
$
|
206.1
|
|
Aviation
|
24.4
|
|
|
23.8
|
|
|
72.0
|
|
|
76.9
|
|
||||
Total
|
$
|
95.3
|
|
|
$
|
93.5
|
|
|
$
|
283.2
|
|
|
$
|
282.9
|
|
ASU
|
|
Topic
|
|
Method of Adoption
|
2016-01
|
|
Financial Instruments
|
|
Modified retrospective
|
2016-15
|
|
Statement of Cash Flows — Classification of Certain Cash Receipts and Cash Payments
|
|
Retrospective
|
2016-16
|
|
Income Taxes — Intra-Entity Transfers of Assets Other Than Inventory
|
|
Modified retrospective
|
2016-18
|
|
Statement of Cash Flows — Restricted Cash
|
|
Retrospective
|
2017-07
|
|
Compensation — Retirement Benefits
|
|
Retrospective
|
2017-09
|
|
Compensation — Stock Compensation
|
|
Prospective
|
2018-02
|
|
Income Statement — Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
|
|
Early adopted; we elected not to reclassify any stranded tax effects of the Tax Cuts and Jobs Act (the “Tax Act”) due to the insignificance of the amount remaining in accumulated other comprehensive income (“AOCI”).
|
2018-04
|
|
Investments — Debt Securities
|
|
Adopted in conjunction with ASU 2016-01
|
|
|
(in millions)
|
|
Balance at October 31, 2018
|
|
Adjustments Due to Adoption of Topic 606
|
|
Balance at November 1, 2018
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
|
||||||
Trade accounts receivable, net
|
|
$
|
1,014.1
|
|
|
$
|
(40.1
|
)
|
|
$
|
974.0
|
|
Costs incurred in excess of amounts billed
|
|
—
|
|
|
40.1
|
|
|
40.1
|
|
|||
Other current assets
|
|
37.0
|
|
|
3.6
|
|
|
40.6
|
|
|||
Other noncurrent assets
|
|
109.6
|
|
|
11.5
|
|
|
121.1
|
|
|||
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
||||||
Other accrued liabilities
|
|
$
|
152.7
|
|
|
$
|
6.0
|
|
|
$
|
158.9
|
|
Deferred income tax liability, net
|
|
37.8
|
|
|
2.6
|
|
|
40.3
|
|
|||
Retained earnings
|
|
771.2
|
|
|
6.5
|
|
|
777.6
|
|
|
|
As of July 31, 2019
|
||||||||||
(in millions)
|
|
Under Historical Guidance
|
|
Effect of Adoption
|
|
As Reported
|
||||||
ASSETS
|
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
|
||||||
Other current assets
|
|
$
|
44.0
|
|
|
$
|
9.5
|
|
|
$
|
53.5
|
|
Other noncurrent assets
|
|
108.0
|
|
|
12.2
|
|
|
120.2
|
|
|||
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
|
||||||
Other accrued liabilities
|
|
$
|
159.9
|
|
|
$
|
6.6
|
|
|
$
|
166.4
|
|
Deferred income tax liability, net
|
|
30.7
|
|
|
0.9
|
|
|
31.6
|
|
|||
Retained earnings
|
|
806.2
|
|
|
14.3
|
|
|
820.5
|
|
|
|
Three Months Ended July 31, 2019
|
|
Nine Months Ended July 31, 2019
|
||||||||||||||||||||
(in millions, except per share amounts)
|
|
Under Historical Guidance
|
|
Effect of Adoption
|
|
As Reported
|
|
Under Historical Guidance
|
|
Effect of Adoption
|
|
As Reported
|
||||||||||||
Revenues
|
|
$
|
1,661.0
|
|
|
$
|
(13.1
|
)
|
|
$
|
1,647.9
|
|
|
$
|
4,887.1
|
|
|
$
|
(36.5
|
)
|
|
$
|
4,850.6
|
|
Operating expenses
|
|
1,466.6
|
|
|
(12.5
|
)
|
|
1,454.1
|
|
|
4,350.3
|
|
|
(36.1
|
)
|
|
4,314.2
|
|
||||||
Selling, general and administrative expenses
|
|
121.9
|
|
|
(2.2
|
)
|
|
119.8
|
|
|
347.5
|
|
|
(6.6
|
)
|
|
340.9
|
|
||||||
Income tax provision
|
|
8.1
|
|
|
0.4
|
|
|
8.5
|
|
|
24.2
|
|
|
1.6
|
|
|
25.8
|
|
||||||
Net income
|
|
35.6
|
|
|
1.2
|
|
|
36.8
|
|
|
74.8
|
|
|
4.6
|
|
|
79.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income per common share — Basic
|
|
$
|
0.53
|
|
|
$
|
0.02
|
|
|
$
|
0.55
|
|
|
$
|
1.13
|
|
|
$
|
0.07
|
|
|
$
|
1.19
|
|
Net income per common share — Diluted
|
|
$
|
0.53
|
|
|
$
|
0.02
|
|
|
$
|
0.55
|
|
|
$
|
1.12
|
|
|
$
|
0.07
|
|
|
$
|
1.19
|
|
|
|
Three Months Ended July 31, 2019
|
||||||||||||||||||||||
(in millions)
|
|
B&I
|
|
Aviation
|
|
T&M
|
|
Education
|
|
Technical Solutions
|
|
Total
|
||||||||||||
Major Service Line
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Janitorial(1)
|
|
$
|
576.9
|
|
|
$
|
32.4
|
|
|
$
|
184.2
|
|
|
$
|
191.4
|
|
|
$
|
—
|
|
|
$
|
985.0
|
|
Parking(2)
|
|
129.5
|
|
|
83.6
|
|
|
6.3
|
|
|
0.7
|
|
|
—
|
|
|
220.1
|
|
||||||
Facility Services(3)
|
|
101.4
|
|
|
18.5
|
|
|
36.5
|
|
|
23.3
|
|
|
—
|
|
|
179.6
|
|
||||||
Building & Energy Solutions(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165.7
|
|
|
165.7
|
|
||||||
Airline Services(5)
|
|
0.1
|
|
|
128.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
128.9
|
|
||||||
|
|
$
|
807.9
|
|
|
$
|
263.3
|
|
|
$
|
226.9
|
|
|
$
|
215.4
|
|
|
$
|
165.7
|
|
|
$
|
1,679.3
|
|
Elimination of inter-segment revenues
|
|
|
|
|
|
|
|
|
|
|
|
(31.3
|
)
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,647.9
|
|
|
|
Nine Months Ended July 31, 2019
|
||||||||||||||||||||||
(in millions)
|
|
B&I
|
|
Aviation
|
|
T&M
|
|
Education
|
|
Technical Solutions
|
|
Total
|
||||||||||||
Major Service Line
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Janitorial(1)
|
|
$
|
1,738.2
|
|
|
$
|
94.0
|
|
|
$
|
554.4
|
|
|
$
|
566.8
|
|
|
$
|
—
|
|
|
$
|
2,953.4
|
|
Parking(2)
|
|
383.3
|
|
|
253.7
|
|
|
19.6
|
|
|
2.3
|
|
|
—
|
|
|
658.8
|
|
||||||
Facility Services(3)
|
|
322.5
|
|
|
54.5
|
|
|
113.2
|
|
|
64.6
|
|
|
—
|
|
|
554.7
|
|
||||||
Building & Energy Solutions(4)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
417.7
|
|
|
417.7
|
|
||||||
Airline Services(5)
|
|
0.5
|
|
|
363.7
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
364.2
|
|
||||||
|
|
$
|
2,444.5
|
|
|
$
|
765.8
|
|
|
$
|
687.3
|
|
|
$
|
633.6
|
|
|
$
|
417.7
|
|
|
$
|
4,948.9
|
|
Elimination of inter-segment revenues
|
|
|
|
|
|
|
|
|
|
|
|
(98.3
|
)
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,850.6
|
|
(in millions)
|
|
July 31, 2019
|
|
November 1, 2018
|
||||
Contract assets
|
|
|
|
|
||||
Billed trade receivables(1)
|
|
$
|
1,018.0
|
|
|
$
|
918.9
|
|
Unbilled trade receivables(1)
|
|
65.9
|
|
|
74.3
|
|
||
Costs incurred in excess of amounts billed(2)
|
|
68.4
|
|
|
40.1
|
|
||
Capitalized commissions(3)
|
|
21.8
|
|
|
15.1
|
|
(in millions)
|
|
Nine Months Ended
July 31, 2019 |
||
Contract liabilities(1)
|
|
|
||
Balance at beginning of period
|
|
$
|
41.7
|
|
Additional contract liabilities
|
|
294.9
|
|
|
Recognition of deferred revenue
|
|
(294.4
|
)
|
|
Balance at end of period
|
|
$
|
42.3
|
|
|
(in millions)
|
|
Balance,
October 31, 2018
|
|
Costs Recognized(1)
|
|
Payments
|
|
Balance,
July 31, 2019
|
||||||||
Employee severance
|
|
$
|
3.8
|
|
|
$
|
3.4
|
|
|
$
|
(4.2
|
)
|
|
$
|
3.0
|
|
Lease exit costs and asset impairment
|
|
3.1
|
|
|
0.7
|
|
|
(0.7
|
)
|
|
3.0
|
|
||||
Other project fees
|
|
1.8
|
|
|
3.7
|
|
|
(4.1
|
)
|
|
1.4
|
|
||||
External support fees
|
|
—
|
|
|
0.8
|
|
|
—
|
|
|
0.8
|
|
||||
Total
|
|
$
|
8.6
|
|
|
$
|
8.5
|
|
|
$
|
(9.0
|
)
|
|
$
|
8.1
|
|
(in millions)
|
|
External Support Fees
|
|
Employee Severance
|
|
Other Project Fees
|
|
Lease Exit Costs
|
|
Asset Impairment
|
|
Total
|
||||||||||||
GCA and Other
|
|
$
|
2.8
|
|
|
$
|
16.9
|
|
|
$
|
11.5
|
|
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
31.8
|
|
2020 Vision
|
|
30.0
|
|
|
13.0
|
|
|
10.7
|
|
|
7.7
|
|
|
5.2
|
|
|
66.5
|
|
||||||
Total
|
|
$
|
32.7
|
|
|
$
|
29.8
|
|
|
$
|
22.2
|
|
|
$
|
8.4
|
|
|
$
|
5.2
|
|
|
$
|
98.4
|
|
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
(in millions, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income from continuing operations
|
$
|
36.5
|
|
|
$
|
33.7
|
|
|
$
|
79.4
|
|
|
$
|
87.1
|
|
Income (loss) from discontinued operations, net of taxes
|
0.2
|
|
|
(0.1
|
)
|
|
—
|
|
|
1.0
|
|
||||
Net income
|
$
|
36.8
|
|
|
$
|
33.6
|
|
|
$
|
79.4
|
|
|
$
|
88.1
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common and common equivalent shares outstanding — Basic
|
66.6
|
|
|
66.1
|
|
|
66.5
|
|
|
66.0
|
|
||||
Effect of dilutive securities
|
|
|
|
|
|
|
|
||||||||
Restricted stock units
|
0.2
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
||||
Stock options
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Weighted-average common and common equivalent shares outstanding — Diluted
|
67.0
|
|
|
66.3
|
|
|
66.8
|
|
|
66.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income per common share — Basic
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.32
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
||||
Net income
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share — Diluted
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.31
|
|
Income from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
||||
Net income
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
1.19
|
|
|
$
|
1.33
|
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||
(in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Anti-dilutive
|
0.1
|
|
|
0.5
|
|
|
0.3
|
|
|
0.4
|
|
|
|
(in millions)
|
Fair Value Hierarchy
|
|
July 31, 2019
|
|
October 31, 2018
|
||||
Cash and cash equivalents(1)
|
1
|
|
$
|
60.5
|
|
|
$
|
39.1
|
|
Insurance deposits(2)
|
1
|
|
0.8
|
|
|
0.6
|
|
||
Assets held in funded deferred compensation plan(3)
|
1
|
|
2.5
|
|
|
2.7
|
|
||
Credit facility(4)
|
2
|
|
932.1
|
|
|
949.0
|
|
||
Interest rate swap (liabilities) assets(5)
|
2
|
|
(12.3
|
)
|
|
1.3
|
|
||
Investments in auction rate securities(6)
|
3
|
|
5.0
|
|
|
5.0
|
|
|
(in millions)
|
July 31, 2019
|
|
October 31, 2018
|
||||
Insurance claim reserves, excluding medical and dental
|
$
|
510.1
|
|
|
$
|
501.4
|
|
Medical and dental claim reserves
|
8.8
|
|
|
8.9
|
|
||
Insurance recoverables
|
66.0
|
|
|
73.7
|
|
(in millions)
|
July 31, 2019
|
|
October 31, 2018
|
||||
Standby letters of credit
|
$
|
143.5
|
|
|
$
|
144.1
|
|
Surety bonds
|
90.9
|
|
|
89.2
|
|
||
Restricted insurance deposits
|
0.8
|
|
|
0.6
|
|
||
Total
|
$
|
235.2
|
|
|
$
|
233.9
|
|
|
(in millions)
|
|
July 31, 2019
|
|
October 31, 2018
|
||||
Current portion of long-term debt
|
|
|
|
|
||||
Gross term loan
|
|
$
|
55.0
|
|
|
$
|
40.0
|
|
Unamortized deferred financing costs
|
|
(2.8
|
)
|
|
(3.0
|
)
|
||
Current portion of term loan
|
|
$
|
52.2
|
|
|
$
|
37.0
|
|
|
|
|
|
|
||||
Long-term debt
|
|
|
|
|
||||
Gross term loan
|
|
$
|
695.0
|
|
|
$
|
740.0
|
|
Unamortized deferred financing costs
|
|
(4.8
|
)
|
|
(6.9
|
)
|
||
Total noncurrent portion of term loan
|
|
690.2
|
|
|
733.1
|
|
||
Line of credit(1)(2)
|
|
182.1
|
|
|
169.0
|
|
||
Long-term debt
|
|
$
|
872.2
|
|
|
$
|
902.0
|
|
(in millions)
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
||||||||
Debt maturities
|
|
$
|
10.0
|
|
|
$
|
60.0
|
|
|
$
|
120.0
|
|
|
$
|
560.0
|
|
Notional Amounts
|
|
Fixed Interest Rates
|
|
Effective Dates
|
|
Maturity Dates
|
$ 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
|
|
|
|
REPORTABLE SEGMENTS AND DESCRIPTIONS
|
|
B&I
|
B&I, our largest reportable segment, encompasses janitorial, facilities engineering, 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.
|
Aviation
|
Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering logistics, air cabin maintenance, and transportation.
|
T&M
|
T&M provides janitorial, facilities engineering, 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.
|
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.
|
|
Three Months Ended July 31,
|
|
Nine Months Ended July 31,
|
||||||||||||
(in millions)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Business & Industry
|
$
|
807.9
|
|
|
$
|
822.6
|
|
|
$
|
2,444.5
|
|
|
$
|
2,446.0
|
|
Aviation
|
263.3
|
|
|
260.5
|
|
|
765.8
|
|
|
769.7
|
|
||||
Technology & Manufacturing
|
226.9
|
|
|
231.0
|
|
|
687.3
|
|
|
691.0
|
|
||||
Education
|
215.4
|
|
|
215.9
|
|
|
633.6
|
|
|
637.8
|
|
||||
Technical Solutions
|
165.7
|
|
|
130.3
|
|
|
417.7
|
|
|
360.3
|
|
||||
Elimination of inter-segment revenues
|
(31.3
|
)
|
|
(36.0
|
)
|
|
(98.3
|
)
|
|
(111.4
|
)
|
||||
|
$
|
1,647.9
|
|
|
$
|
1,624.3
|
|
|
$
|
4,850.6
|
|
|
$
|
4,793.5
|
|
Operating profit (loss)
|
|
|
|
|
|
|
|
||||||||
Business & Industry
|
$
|
45.3
|
|
|
$
|
40.1
|
|
|
$
|
131.2
|
|
|
$
|
114.8
|
|
Aviation
|
8.6
|
|
|
9.7
|
|
|
17.2
|
|
|
20.6
|
|
||||
Technology & Manufacturing
|
17.0
|
|
|
16.9
|
|
|
54.4
|
|
|
49.8
|
|
||||
Education
|
12.6
|
|
|
12.1
|
|
|
33.4
|
|
|
32.1
|
|
||||
Technical Solutions
|
17.9
|
|
|
13.1
|
|
|
35.3
|
|
|
28.8
|
|
||||
Government Services
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.8
|
)
|
||||
Corporate
|
(43.5
|
)
|
|
(42.7
|
)
|
|
(127.1
|
)
|
|
(127.3
|
)
|
||||
Adjustment for income from unconsolidated affiliates, included in Aviation
|
(0.7
|
)
|
|
(0.9
|
)
|
|
(2.4
|
)
|
|
(2.5
|
)
|
||||
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions
|
0.1
|
|
|
(0.3
|
)
|
|
0.1
|
|
|
(2.6
|
)
|
||||
|
57.3
|
|
|
48.1
|
|
|
142.1
|
|
|
112.9
|
|
||||
Income from unconsolidated affiliates
|
0.7
|
|
|
1.0
|
|
|
2.4
|
|
|
2.5
|
|
||||
Interest expense
|
(12.9
|
)
|
|
(12.9
|
)
|
|
(39.2
|
)
|
|
(41.0
|
)
|
||||
Income from continuing operations before income taxes
|
$
|
45.0
|
|
|
$
|
36.1
|
|
|
$
|
105.3
|
|
|
$
|
74.4
|
|
Business Overview
|
Developments and Trends
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
||||||
(in millions)
|
July 31, 2019
|
|
July 31, 2019
|
|
Cumulative
|
||||||
Employee severance
|
$
|
0.3
|
|
|
$
|
3.4
|
|
|
$
|
16.9
|
|
Other project fees
|
0.9
|
|
|
3.7
|
|
|
11.5
|
|
|||
External support fees
|
0.8
|
|
|
0.8
|
|
|
2.8
|
|
|||
Lease exit costs and asset impairment
|
—
|
|
|
0.7
|
|
|
0.7
|
|
|||
Total
|
$
|
2.0
|
|
|
$
|
8.5
|
|
|
$
|
31.8
|
|
•
|
Revenues increased by $23.6 million, or 1.5%, during the three months ended July 31, 2019, as compared to the three months ended July 31, 2018, primarily due to organic growth in our U.S. Technical Solutions business.
|
•
|
Operating profit increased by $9.2 million, or 19.0%, during the three months ended July 31, 2019, as compared to the three months ended July 31, 2018. The increase in operating profit is primarily attributable to improved margins within B&I and the contribution of higher project revenues in our U.S. Technical Solutions business, as well as a lower self-insurance adjustment related to prior year claims.
|
•
|
We had a provision for tax of $25.8 million during the nine months ended July 31, 2019, as compared to a benefit from tax of $12.7 million during the nine months ended July 31, 2018. The 2018 period benefited primarily from a net discrete tax benefit of $21.5 million related to the Tax Cuts and Jobs Act (the “Tax Act”).
|
•
|
Net cash provided by operating activities was $114.0 million during the nine months ended July 31, 2019.
|
•
|
Dividends of $35.8 million were paid to shareholders, and dividends totaling $0.540 per common share were declared during the nine months ended July 31, 2019.
|
•
|
At July 31, 2019, total outstanding borrowings under our credit facility were $932.1 million, and we had up to $457.0 million of borrowing capacity under our credit facility; however, covenant restrictions limited our actual borrowing capacity to $261.5 million.
|
Results of Operations
|
|
Three Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
$
|
1,647.9
|
|
|
$
|
1,624.3
|
|
|
$
|
23.6
|
|
|
1.5%
|
Operating expenses
|
1,454.1
|
|
|
1,446.7
|
|
|
7.4
|
|
|
0.5%
|
|||
Gross margin
|
11.8
|
%
|
|
10.9
|
%
|
|
83 bps
|
|
|
||||
Selling, general and administrative expenses
|
119.8
|
|
|
110.0
|
|
|
9.8
|
|
|
8.9%
|
|||
Restructuring and related expenses
|
2.0
|
|
|
2.9
|
|
|
(0.9
|
)
|
|
(31.8)%
|
|||
Amortization of intangible assets
|
14.9
|
|
|
16.6
|
|
|
(1.7
|
)
|
|
(10.6)%
|
|||
Operating profit
|
57.3
|
|
|
48.1
|
|
|
9.2
|
|
|
19.0%
|
|||
Income from unconsolidated affiliates
|
0.7
|
|
|
1.0
|
|
|
(0.3
|
)
|
|
(27.7)%
|
|||
Interest expense
|
(12.9
|
)
|
|
(12.9
|
)
|
|
—
|
|
|
—%
|
|||
Income from continuing operations before income taxes
|
45.0
|
|
|
36.1
|
|
|
8.9
|
|
|
24.6%
|
|||
Income tax provision
|
(8.5
|
)
|
|
(2.4
|
)
|
|
6.1
|
|
|
NM*
|
|||
Income from continuing operations
|
36.5
|
|
|
33.7
|
|
|
2.8
|
|
|
8.3%
|
|||
Income (loss) from discontinued operations, net of taxes
|
0.2
|
|
|
(0.1
|
)
|
|
0.3
|
|
|
NM*
|
|||
Net income
|
36.8
|
|
|
33.6
|
|
|
3.2
|
|
|
9.3%
|
|||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
(5.7
|
)
|
|
(1.2
|
)
|
|
(4.5
|
)
|
|
NM*
|
|||
Foreign currency translation
|
(4.6
|
)
|
|
(6.5
|
)
|
|
1.9
|
|
|
29.3%
|
|||
Income tax benefit
|
1.6
|
|
|
0.3
|
|
|
1.3
|
|
|
NM*
|
|||
Comprehensive income
|
$
|
28.0
|
|
|
$
|
26.2
|
|
|
$
|
1.8
|
|
|
6.8%
|
*Not meaningful
|
•
|
a $4.7 million increase in technology investments and related support;
|
•
|
a $3.9 million reserve for an anticipated union pension settlement;
|
•
|
the absence of a $2.7 million reimbursement of previously expensed legal settlement costs in the prior year; and
|
•
|
a $2.5 million reserve established for a non-recurring adjustment related to a client account.
|
•
|
a $1.9 million decrease in legal settlement costs; and
|
•
|
a $1.5 million decrease in compensation and related expenses.
|
|
Three Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||
Business & Industry
|
$
|
807.9
|
|
|
$
|
822.6
|
|
|
$
|
(14.7
|
)
|
|
(1.8)%
|
Aviation
|
263.3
|
|
|
260.5
|
|
|
2.8
|
|
|
1.1%
|
|||
Technology & Manufacturing
|
226.9
|
|
|
231.0
|
|
|
(4.1
|
)
|
|
(1.8)%
|
|||
Education
|
215.4
|
|
|
215.9
|
|
|
(0.5
|
)
|
|
(0.3)%
|
|||
Technical Solutions
|
165.7
|
|
|
130.3
|
|
|
35.4
|
|
|
27.2%
|
|||
Elimination of inter-segment revenues
|
(31.3
|
)
|
|
(36.0
|
)
|
|
4.7
|
|
|
12.9%
|
|||
|
$
|
1,647.9
|
|
|
$
|
1,624.3
|
|
|
$
|
23.6
|
|
|
1.5%
|
Operating profit (loss)
|
|
|
|
|
|
|
|
||||||
Business & Industry
|
$
|
45.3
|
|
|
$
|
40.1
|
|
|
$
|
5.2
|
|
|
12.8%
|
Operating profit margin
|
5.6
|
%
|
|
4.9
|
%
|
|
72 bps
|
|
|
|
|||
Aviation
|
8.6
|
|
|
9.7
|
|
|
(1.1
|
)
|
|
(11.7)%
|
|||
Operating profit margin
|
3.3
|
%
|
|
3.7
|
%
|
|
(47) bps
|
|
|
|
|||
Technology & Manufacturing
|
17.0
|
|
|
16.9
|
|
|
0.1
|
|
|
0.6%
|
|||
Operating profit margin
|
7.5
|
%
|
|
7.3
|
%
|
|
17 bps
|
|
|
|
|||
Education
|
12.6
|
|
|
12.1
|
|
|
0.5
|
|
|
4.0%
|
|||
Operating profit margin
|
5.8
|
%
|
|
5.6
|
%
|
|
24 bps
|
|
|
|
|||
Technical Solutions
|
17.9
|
|
|
13.1
|
|
|
4.8
|
|
|
37.1%
|
|||
Operating profit margin
|
10.8
|
%
|
|
10.0
|
%
|
|
79 bps
|
|
|
|
|||
Corporate
|
(43.5
|
)
|
|
(42.7
|
)
|
|
(0.8
|
)
|
|
(1.9)%
|
|||
Adjustment for income from unconsolidated affiliates, included in Aviation
|
(0.7
|
)
|
|
(0.9
|
)
|
|
0.2
|
|
|
20.2%
|
|||
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions
|
0.1
|
|
|
(0.3
|
)
|
|
0.4
|
|
|
NM*
|
|||
|
$
|
57.3
|
|
|
$
|
48.1
|
|
|
$
|
9.2
|
|
|
19.0%
|
*Not meaningful
|
Business & Industry
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
$
|
807.9
|
|
|
$
|
822.6
|
|
|
$
|
(14.7
|
)
|
|
(1.8)%
|
Operating profit
|
45.3
|
|
|
40.1
|
|
|
5.2
|
|
|
12.8%
|
|||
Operating profit margin
|
5.6
|
%
|
|
4.9
|
%
|
|
72 bps
|
|
|
|
Aviation
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
$
|
263.3
|
|
|
$
|
260.5
|
|
|
$
|
2.8
|
|
|
1.1%
|
Operating profit
|
8.6
|
|
|
9.7
|
|
|
(1.1
|
)
|
|
(11.7)%
|
|||
Operating profit margin
|
3.3
|
%
|
|
3.7
|
%
|
|
(47) bps
|
|
|
|
Education
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
$
|
215.4
|
|
|
$
|
215.9
|
|
|
$
|
(0.5
|
)
|
|
(0.3)%
|
Operating profit
|
12.6
|
|
|
12.1
|
|
|
0.5
|
|
|
4.0%
|
|||
Operating profit margin
|
5.8
|
%
|
|
5.6
|
%
|
|
24 bps
|
|
|
|
Technical Solutions
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase
|
||||||||
Revenues
|
$
|
165.7
|
|
|
$
|
130.3
|
|
|
$
|
35.4
|
|
|
27.2%
|
Operating profit
|
17.9
|
|
|
13.1
|
|
|
4.8
|
|
|
37.1%
|
|||
Operating profit margin
|
10.8
|
%
|
|
10.0
|
%
|
|
79 bps
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase
|
||||||||
Corporate expenses
|
$
|
43.5
|
|
|
$
|
42.7
|
|
|
$
|
0.8
|
|
|
1.9%
|
•
|
a $4.7 million increase in technology investments and related support;
|
•
|
a $3.9 million reserve for an anticipated union pension settlement;
|
•
|
the absence of a $2.7 million reimbursement of previously expensed legal settlement costs received in the prior year; and
|
•
|
a $2.5 million reserve established for a non-recurring adjustment related to a client account.
|
•
|
a $9.0 million decrease in self-insurance reserve adjustments related to prior year claims as a result of an actuarial review completed in the three months ended July 31, 2019;
|
•
|
a $1.8 million decrease in legal settlement costs; and
|
•
|
a $0.9 million decrease in restructuring and related expenses as a result of restructuring expenses incurred in the prior year following the acquisition of GCA, partially offset by other restructuring expenses incurred in the current year.
|
Results of Operations
|
|
Nine Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
$
|
4,850.6
|
|
|
$
|
4,793.5
|
|
|
$
|
57.1
|
|
|
1.2%
|
Operating expenses
|
4,314.2
|
|
|
4,281.8
|
|
|
32.4
|
|
|
0.8%
|
|||
Gross margin
|
11.1
|
%
|
|
10.7
|
%
|
|
38 bps
|
|
|
||||
Selling, general and administrative expenses
|
340.9
|
|
|
326.8
|
|
|
14.1
|
|
|
4.3%
|
|||
Restructuring and related expenses
|
8.5
|
|
|
22.5
|
|
|
(14.0
|
)
|
|
(62.2)%
|
|||
Amortization of intangible assets
|
44.9
|
|
|
49.5
|
|
|
(4.6
|
)
|
|
(9.3)%
|
|||
Operating profit
|
142.1
|
|
|
112.9
|
|
|
29.2
|
|
|
25.9%
|
|||
Income from unconsolidated affiliates
|
2.4
|
|
|
2.5
|
|
|
(0.1
|
)
|
|
(4.5)%
|
|||
Interest expense
|
(39.2
|
)
|
|
(41.0
|
)
|
|
(1.8
|
)
|
|
(4.4)%
|
|||
Income from continuing operations before income taxes
|
105.3
|
|
|
74.4
|
|
|
30.9
|
|
|
41.6%
|
|||
Income tax (provision) benefit
|
(25.8
|
)
|
|
12.7
|
|
|
(38.5
|
)
|
|
NM*
|
|||
Income from continuing operations
|
79.4
|
|
|
87.1
|
|
|
(7.7
|
)
|
|
(8.7)%
|
|||
Income from discontinued operations, net of taxes
|
—
|
|
|
1.0
|
|
|
(1.0
|
)
|
|
NM*
|
|||
Net income
|
79.4
|
|
|
88.1
|
|
|
(8.7
|
)
|
|
(9.8)%
|
|||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
||||||
Interest rate swaps
|
(17.9
|
)
|
|
22.0
|
|
|
(39.9
|
)
|
|
NM*
|
|||
Foreign currency translation
|
(2.4
|
)
|
|
(1.5
|
)
|
|
(0.9
|
)
|
|
(60.3)%
|
|||
Income tax benefit (provision)
|
4.9
|
|
|
(5.9
|
)
|
|
10.8
|
|
|
NM*
|
|||
Comprehensive income
|
$
|
64.0
|
|
|
$
|
102.6
|
|
|
$
|
(38.6
|
)
|
|
(37.6)%
|
*Not meaningful
|
•
|
a $14.4 million increase in technology investments and related support;
|
•
|
the absence of a $7.0 million reimbursement of previously expensed legal settlement costs received in the prior year;
|
•
|
a $3.9 million reserve for an anticipated union pension settlement;
|
•
|
the absence of a $3.4 million benefit in the prior year resulting from actuarial evaluations performed on our medical and dental self-insurance plans; and
|
•
|
a $2.5 million reserve established for a non-recurring adjustment related to a client account.
|
•
|
a $7.3 million decrease in compensation and related expenses; and
|
•
|
a $6.9 million decrease in legal settlement costs.
|
|
Nine Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||
Business & Industry
|
$
|
2,444.5
|
|
|
$
|
2,446.0
|
|
|
$
|
(1.5
|
)
|
|
(0.1)%
|
Aviation
|
765.8
|
|
|
769.7
|
|
|
(3.9
|
)
|
|
(0.5)%
|
|||
Technology & Manufacturing
|
687.3
|
|
|
691.0
|
|
|
(3.7
|
)
|
|
(0.5)%
|
|||
Education
|
633.6
|
|
|
637.8
|
|
|
(4.2
|
)
|
|
(0.7)%
|
|||
Technical Solutions
|
417.7
|
|
|
360.3
|
|
|
57.4
|
|
|
15.9%
|
|||
Elimination of inter-segment revenues
|
(98.3
|
)
|
|
(111.4
|
)
|
|
13.1
|
|
|
11.7%
|
|||
|
$
|
4,850.6
|
|
|
$
|
4,793.5
|
|
|
$
|
57.1
|
|
|
1.2%
|
Operating profit (loss)
|
|
|
|
|
|
|
|
||||||
Business & Industry
|
$
|
131.2
|
|
|
$
|
114.8
|
|
|
$
|
16.4
|
|
|
14.3%
|
Operating profit margin
|
5.4
|
%
|
|
4.7
|
%
|
|
68 bps
|
|
|
|
|||
Aviation
|
17.2
|
|
|
20.6
|
|
|
(3.4
|
)
|
|
(16.3)%
|
|||
Operating profit margin
|
2.3
|
%
|
|
2.7
|
%
|
|
(42) bps
|
|
|
|
|||
Technology & Manufacturing
|
54.4
|
|
|
49.8
|
|
|
4.6
|
|
|
9.2%
|
|||
Operating profit margin
|
7.9
|
%
|
|
7.2
|
%
|
|
70 bps
|
|
|
|
|||
Education
|
33.4
|
|
|
32.1
|
|
|
1.3
|
|
|
4.0%
|
|||
Operating profit margin
|
5.3
|
%
|
|
5.0
|
%
|
|
24 bps
|
|
|
|
|||
Technical Solutions
|
35.3
|
|
|
28.8
|
|
|
6.5
|
|
|
22.4%
|
|||
Operating profit margin
|
8.4
|
%
|
|
8.0
|
%
|
|
45 bps
|
|
|
|
|||
Government Services
|
(0.1
|
)
|
|
(0.8
|
)
|
|
0.7
|
|
|
91.5%
|
|||
Operating profit margin
|
NM*
|
|
|
NM*
|
|
|
NM*
|
|
|
|
|||
Corporate
|
(127.1
|
)
|
|
(127.3
|
)
|
|
0.2
|
|
|
0.2%
|
|||
Adjustment for income from unconsolidated affiliates, included in Aviation
|
(2.4
|
)
|
|
(2.5
|
)
|
|
0.1
|
|
|
4.9%
|
|||
Adjustment for tax deductions for energy efficient government buildings, included in Technical Solutions
|
0.1
|
|
|
(2.6
|
)
|
|
2.7
|
|
|
NM*
|
|||
|
$
|
142.1
|
|
|
$
|
112.9
|
|
|
$
|
29.2
|
|
|
25.9%
|
*Not meaningful
|
Business & Industry
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
$
|
2,444.5
|
|
|
$
|
2,446.0
|
|
|
$
|
(1.5
|
)
|
|
(0.1)%
|
Operating profit
|
131.2
|
|
|
114.8
|
|
|
16.4
|
|
|
14.3%
|
|||
Operating profit margin
|
5.4
|
%
|
|
4.7
|
%
|
|
68 bps
|
|
|
|
Aviation
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Decrease
|
||||||||
Revenues
|
$
|
765.8
|
|
|
$
|
769.7
|
|
|
$
|
(3.9
|
)
|
|
(0.5)%
|
Operating profit
|
17.2
|
|
|
20.6
|
|
|
(3.4
|
)
|
|
(16.3)%
|
|||
Operating profit margin
|
2.3
|
%
|
|
2.7
|
%
|
|
(42) bps
|
|
|
|
Education
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase / (Decrease)
|
||||||||
Revenues
|
$
|
633.6
|
|
|
$
|
637.8
|
|
|
$
|
(4.2
|
)
|
|
(0.7)%
|
Operating profit
|
33.4
|
|
|
32.1
|
|
|
1.3
|
|
|
4.0%
|
|||
Operating profit margin
|
5.3
|
%
|
|
5.0
|
%
|
|
24 bps
|
|
|
|
Technical Solutions
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Increase
|
||||||||
Revenues
|
$
|
417.7
|
|
|
$
|
360.3
|
|
|
$
|
57.4
|
|
|
15.9%
|
Operating profit
|
35.3
|
|
|
28.8
|
|
|
6.5
|
|
|
22.4%
|
|||
Operating profit margin
|
8.4
|
%
|
|
8.0
|
%
|
|
45 bps
|
|
|
|
Corporate
|
|
|
|
|
|
|
|
||||||
|
Nine Months Ended July 31,
|
|
|
|
|
||||||||
($ in millions)
|
2019
|
|
2018
|
|
Decrease
|
||||||||
Corporate expenses
|
$
|
127.1
|
|
|
$
|
127.3
|
|
|
$
|
(0.2
|
)
|
|
(0.2)%
|
•
|
a $14.0 million decrease in restructuring and related expenses as a result of restructuring expenses incurred in the prior year following the acquisition of GCA, partially offset by other restructuring expenses incurred in the current year;
|
•
|
an $8.0 million decrease in self-insurance reserve adjustments related to prior year claims as a result of actuarial reviews completed in the nine months ended July 31, 2019;
|
•
|
a $6.3 million decrease in legal settlement costs;
|
•
|
$2.1 million lower compensation and related expenses; and
|
•
|
the absence of $1.6 million of acquisition costs related to the GCA acquisition in the prior year.
|
•
|
a $14.4 million increase in technology investments and related support;
|
•
|
the absence of a $7.0 million reimbursement of previously expensed legal settlement costs received in the prior year;
|
•
|
a $3.9 million reserve for an anticipated union pension settlement;
|
•
|
the absence of a $3.4 million benefit in the prior year resulting from actuarial evaluations performed on our medical and dental self-insurance plans; and
|
•
|
a $2.5 million reserve established for a non-recurring adjustment related to a client account.
|
Liquidity and Capital Resources
|
|
Nine Months Ended July 31,
|
||||||
(in millions)
|
2019
|
|
2018
|
||||
Net cash provided by operating activities
|
$
|
114.0
|
|
|
$
|
207.4
|
|
Net cash used in investing activities
|
(44.1
|
)
|
|
(36.3
|
)
|
||
Net cash used in financing activities
|
(46.4
|
)
|
|
(187.7
|
)
|
Contingencies
|
Critical Accounting Policies and Estimates
|
Accounting Standard
|
|
Description
|
|
Effective Date/Method of Adoption
|
|
Effect on the Financial Statements
|
In July 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-07, Codification Updates to SEC Sections—Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, “Disclosure Update and Simplification,” and Nos. 33-10231 and 33-10442, “Investment Company Reporting Modernization,” and Miscellaneous Updates.
|
|
This ASU codifies the SEC releases that clarify and improve the disclosure and presentation requirements of a variety of codification topics, thereby eliminating certain disclosure requirements that were redundant, duplicative, overlapping, outdated, or superseded.
|
|
Effective upon issuance, to be applied prospectively.
|
|
We adopted the amendments under the SEC releases in the second quarter of 2019, as described in Note 2, “Basis of Presentation and Significant Accounting Policies,” in the Financial Statements. We now include a statement of changes in stockholders’ equity for interim periods; the eliminated or amended disclosures did not have a material impact on our consolidated financial statements.
|
In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief.
|
|
This ASU provides targeted transition relief allowing entities to make an irrevocable one-time election upon adoption of the new credit losses standard to measure financial assets previously measured at amortized cost (except held-to-maturity securities) using the fair value option.
|
|
This update will be adopted in conjunction with ASU 2016-13, as further described below.
|
|
We are currently evaluating the impact of implementing this guidance on our financial statements.
|
In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326: Financial
Instruments—Credit Losses; Topic 815: Derivatives and Hedging; and Topic 825: Financial Instruments. |
|
This ASU provides narrow-scope amendments designed to assist in the application of the following updates and the related accounting standards:
(1) ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements;
(2) ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities; and
(3) 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.
|
|
(1) The amendments related to ASU 2016-13 will be adopted in conjunction with that ASU, as further described below.
(2) Since we early adopted ASU 2017-12, the related amendments are effective for us on November 1, 2019 and can be applied either retrospectively or prospectively.
(3) Since we already adopted ASU 2016-01, the related amendments are effective for us on November 1, 2020 and will be applied using a modified-retrospective adoption approach with a cumulative-effect adjustment to retained earnings.
|
|
We are currently evaluating the impact of implementing all three aspects of this guidance on our financial statements.
|
Accounting Standard
|
|
Description
|
|
Effective Date/Method of Adoption
|
|
Effect on the Financial Statements
|
In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.
|
|
This ASU provides guidance on whether certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606. It specifically addresses when the participant is a customer in the context of a unit of account, adds unit of account guidance in Topic 808 to align with guidance in Topic 606, and precludes presenting the collaborative arrangement transaction together with revenue recognized under Topic 606 if the collaborative arrangement participant is not a customer.
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November 1, 2020
This update will be applied retrospectively.
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We are currently evaluating the impact of implementing this guidance on our financial statements.
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In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities.
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This ASU provides that indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interest.
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November 1, 2020.
This update will be applied retrospectively.
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|
We are currently evaluating the impact of implementing this guidance on our financial statements.
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In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.
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This ASU adds the Overnight Index Swap (“OIS”) rate based on the Secured Overnight Financing Rate (“SOFR”) (a swap rate based on the underlying overnight SOFR rate) as an eligible benchmark interest rate for purposes of applying hedge accounting. SOFR is a volume-weighted median interest rate that is calculated daily based on overnight transactions from the prior day’s trading activity in specified segments of the U.S. Treasury repo market. SOFR was selected by the Alternative Reference Rates Committee as its preferred alternative reference rate to LIBOR.
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Since we early adopted ASU 2017-12, this update will be effective for us on November 1, 2020 on a prospective basis.
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We are currently evaluating the impact of implementing this guidance on our financial statements.
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In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.
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This ASU aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.
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November 1, 2020
This update will be applied either prospectively or retrospectively.
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We are currently evaluating the impact of implementing this guidance on our financial statements.
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In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—General (Topic 715).
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This ASU modifies the disclosure requirements on company-sponsored defined benefit plans.
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November 1, 2020
This update will be applied retrospectively.
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We are currently evaluating the impact of implementing this guidance on our financial statements.
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In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework.
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This ASU modifies the disclosure requirements on fair value measurements by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty, and adding new disclosure requirements.
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November 1, 2020
The amendments related to disclosure requirements within this update will be applied prospectively and the other amendments will be applied retrospectively.
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We are currently evaluating the impact of implementing this guidance on our financial statements.
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Accounting Standard
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Description
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Effective Date/Method of Adoption
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Effect on the Financial Statements
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In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements.
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This ASU replaces the existing incurred loss impairment model with a methodology that incorporates all expected credit loss estimates, resulting in more timely recognition of losses.
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November 1, 2020
This standard will be applied using a modified retrospective adoption approach with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. |
|
We are currently evaluating the impact of implementing this guidance on our financial statements.
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In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The FASB has issued several updates to ASU 2016-02, including ASU 2018-10, Codification Improvements to Topic 842, Leases, and ASU 2018-11, Leases (Topic 842): Targeted Improvements, which were issued in July 2018, as well as ASU 2019-01, Leases (Topic 842): Codification Improvements, which was issued in March 2019.
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ASU 2016-02 improves transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. ASU 2018-10 and ASU 2018-11 amend various aspects of Topic 842, including an additional transition method. ASU 2019-01, among other issues, addresses determination of the fair value of the underlying asset by lessors that are not manufacturers or dealers and clarifies interim period transition disclosure requirements.
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November 1, 2019
This guidance may be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with certain practical expedients available. Alternatively, this guidance may be applied at the adoption date by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. |
|
We are currently evaluating the impact of implementing this guidance on our financial statements. Refer to Note 2, “Basis of Presentation and Significant Accounting Policies,” in the Financial Statements for additional information.
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Exhibit No.
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|
Exhibit Description
|
31.1†
|
|
|
31.2†
|
|
|
32‡
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101.INS†
|
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
|
101.SCH†
|
|
Inline XBRL Taxonomy Extension Schema Document
|
101.CAL†
|
|
Inline XBRL Taxonomy Calculation Linkbase Document
|
101.DEF†
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB†
|
|
Inline XBRL Taxonomy Label Linkbase Document
|
101.PRE†
|
|
Inline XBRL Presentation Linkbase Document
|
104†
|
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
†
|
Indicates filed herewith
|
|
|
‡
|
Indicates furnished herewith
|
|
|
|
|
ABM Industries Incorporated
|
September 6, 2019
|
|
/s/ D. Anthony Scaglione
|
|
|
D. Anthony Scaglione
Executive Vice President and
Chief Financial Officer
(Duly Authorized Officer)
|
September 6, 2019
|
|
/s/ Dean A. Chin
|
|
|
Dean A. Chin
Senior Vice President, Chief Accounting Officer,
and Corporate Controller
(Principal Accounting Officer)
|
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