Fair Value of Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments

The following table presents the fair value hierarchy, carrying amounts, and fair values of our financial instruments that are measured on a recurring basis and other select significant financial instruments as of July 31, 2014 and October 31, 2013:

		July 31, 2014				October 31, 2013
(in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets measured at fair value on a recurring basis
Assets held in funded deferred compensation plan (1)	1	$	5.3	$	5.3	$	5.4	$	5.4
Investments in auction rate securities (2)	3	13.0		13.0		13.0		13.0
		18.3		18.3		18.4		18.4
Other select financial assets
Cash and cash equivalents (3)	1	24.6		24.6		32.6		32.6
Insurance deposits (4)	1	16.0		16.0		28.5		28.5
		40.6		40.6		61.1		61.1
Total		$	58.9	$	58.9	$	79.5	$	79.5
Financial liabilities measured at fair value on a recurring basis
Interest rate swaps (5)	2	—		—		$	0.2	$	0.2
Contingent consideration liability (6)	3	1.6		1.6		1.6		1.6
		1.6		1.6		1.8		1.8
Other select financial liability
Line of credit (7)	2	311.7		311.7		314.9		314.9
Total		$	313.3	$	313.3	$	316.7	$	316.7

(1) Represents investments held in a Rabbi Trust associated with our OneSource Deferred Compensation Plan, which we include in “Other 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.

(2) For investments in auction rate securities, the fair values were based on discounted cash flow valuation models, primarily utilizing unobservable inputs. See Note 6, “Auction Rate Securities,” for the roll-forward of assets measured at fair value using significant unobservable Level 3 inputs and the sensitivity analysis of significant inputs.

(3) Cash and cash equivalents are stated at nominal value, which equals fair value.

(4) Represents restricted insurance deposits that are used to collateralize our insurance obligations and are stated at nominal value, which equals fair value. These insurance deposits relate primarily to the OneSource Services Inc. acquisition. See Note 7, “Insurance,” 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 LIBOR forward rates at the end of the period. The fair value of the interest rate swap liabilities was included in “Retirement plans and other” on the accompanying unaudited consolidated balance sheets. See Note 8, “Line of Credit,” for further information.

(6) Our contingent consideration liability was incurred in connection with the BEST Acquisition. The contingent consideration liability is measured at fair value and is included in “Retirement plans and other” on the accompanying unaudited consolidated balance sheets. The fair value is based on a pre-defined forecasted adjusted income from operations for BEST using a probability weighted income approach and discounted using a proxy for our fixed borrowing rate. See Note 4, “Acquisitions,” for further information.

(7) Represents outstanding borrowings under our syndicated line of credit. Due to variable interest rates, the carrying value of outstanding borrowings under our line of credit approximates the fair value. See Note 8, “Line of Credit,” for further information.