Segment and Geographic Information

12 Months Ended

Oct. 31, 2015

Segment Reporting [Abstract]

Segment and Geographic Information

SEGMENT AND GEOGRAPHIC INFORMATION

Segment Information

As discussed in Note 4, “Discontinued Operations,” during the fourth quarter of 2015, we sold our Security business, which was previously reported as a reportable segment. This business is now included within discontinued operations for all periods presented, and we have revised our segment results accordingly. As such, we currently have five reportable segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and Other.

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.

During 2015, we completed our annual actuarial evaluations for the majority of our casualty insurance programs, which showed unfavorable developments for 2015. Refer to Note 12, “Insurance,” for further details on the results of our actuarial evaluations. As a result of these evaluations, we increased our reserves for 2015 insurance claims by $6.5 million and, consistent with prior periods, we allocated this expense to our operating segments based upon underlying exposures. For years prior to 2015, the analysis showed unfavorable developments in our insurance claims, and as a result, we increased our reserves by $35.9 million. Consistent with prior periods, this adjustment is recorded in Corporate. Additionally, other Corporate expenses not allocated to segments include:

• certain CEO and other finance and human resource departmental costs;

• certain information technology costs;

• share-based compensation costs;

• certain legal costs and settlements;

• restructuring and related charges; and

• direct acquisition costs.

Financial Information by Reportable Segment

	Years Ended October 31,
(in millions)	2015			2014			2013
Revenues:
Janitorial	$	2,692.7		$	2,583.2		$	2,480.5
Facility Services	594.6			599.3			609.4
Parking	631.9			616.1			609.1
Building & Energy Solutions	557.7			483.8			401.5
Other	420.9			367.3			326.4
Corporate	—			—			0.9
	$	4,897.8		$	4,649.7		$	4,427.8
Operating profit1:
Janitorial	$	150.5		$	147.0		$	138.6
Facility Services	25.3			25.2			25.7
Parking	29.6			29.2			25.7
Building & Energy Solutions	26.3			23.1			15.3
Other	15.2			12.2			11.8
Corporate	(162.3		)	(115.3		)	(105.6		)
Adjustment for income from unconsolidated affiliates, net, included in Building & Energy Solutions	(9.0		)	(6.6		)	(6.2		)
Adjustment for tax deductions for energy efficient government buildings, included in Building & Energy Solutions	(2.0		)	—			—
	73.6			114.8			105.3
Income from unconsolidated affiliates, net	9.0			6.5			6.3
Interest expense	(10.2		)	(10.7		)	(12.9		)
Income from continuing operations before income taxes	$	72.4		$	110.6		$	98.7

¹ Effective in the first quarter of 2015, we reallocated certain costs from our Janitorial segment to our Facility Services and Parking segments to better reflect certain overhead support functions. The impact of these reallocations on the segments was an increase of operating profit to the Janitorial segment and a decrease of operating profit to the Facility Services and Parking segments as follows:

	Years Ended October 31,
($ in millions)	2014			2013
Janitorial	$	3.4		$	3.5
Facility Services	(1.7		)	(1.7		)
Parking	(1.7		)	(1.8		)

¹ In connection with the sale of our Security business, certain general corporate expenses that were previously allocated to Security are now allocated back to Corporate expenses and the Janitorial segment. In addition, certain Corporate expenses that were directly related to the operations of the Security business have been allocated to discontinued operations. The net impact of these allocations is as follows:

	Years Ended October 31,
($ in millions)	2014			2013
Janitorial	$	(0.8	)	$	(0.3	)
Corporate	(0.5		)	(0.4		)

	Years Ended October 31,
(in millions)	2015		2014		2013
Total assets2:
Janitorial	$	959.2	$	952.8	$	887.5
Facility Services	196.3		198.8		211.3
Parking	149.1		140.6		141.9
Building & Energy Solutions	383.0		334.9		296.2
Other	233.6		224.4		231.9
Corporate	228.6		225.4		237.7
	$	2,149.8	$	2,076.9	$	2,006.5
Depreciation and amortization3:
Janitorial	$	17.6	$	17.9	$	18.0
Facility Services	3.6		3.9		4.4
Parking	3.1		2.9		3.2
Building & Energy Solutions	12.4		11.4		11.3
Other	10.8		11.9		11.5
Corporate	9.5		8.4		11.0
	$	57.0	$	56.4	$	59.4
Capital expenditures:
Janitorial	$	12.9	$	13.2	$	14.7
Facility Services	0.2		0.1		—
Parking	3.4		2.2		2.5
Building & Energy Solutions	1.7		3.1		1.2
Other	3.8		5.1		2.4
Corporate	4.5		13.7		11.6
	$	26.5	$	37.4	$	32.4

² Excludes $116.0 million and $112.7 million of assets of discontinued operations at October 31, 2014 and 2013, respectively.

³ Excludes amortization related to income from unconsolidated affiliates.

Geographic Information Based on the Country in Which the Sale Originated⁴ 

	Years Ended October 31,
(in millions)	2015		2014		2013
Revenues:
United States	$	4,687.2	$	4,519.4	$	4,321.5
All other countries	210.6		130.3		106.3
	$	4,897.8	$	4,649.7	$	4,427.8

⁴ Substantially all of our long-lived assets are related to United States operations.