Segment and Geographic Information |
SEGMENT AND GEOGRAPHIC INFORMATION Segment Information Effective November 1, 2016, we reorganized our reportable segments to reflect how we now manage our business by industry group. Our reportable segments consist of Business & Industry (“B&I”), Aviation, Emerging Industries Group, Technical Solutions, and the newly acquired GCA Services. Among other changes, once we integrate GCA into our industry group model in 2018, we anticipate our Education industry group will become a reportable segment. We also expect to present a new Technology & Manufacturing reportable segment, that will combine our High Tech industry group and the legacy GCA and ABM Industrial & Manufacturing (“I&M”) businesses. ABM’s legacy I&M business was included in the B&I segment. Refer to Note 2, “Basis of Presentation and Significant Accounting Policies,” for information related to the former Government Services business. | | | ONGOING 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 industrial and manufacturing sites. | Aviation | Aviation supports airlines and airports with services ranging from parking and janitorial to passenger assistance, catering, air cabin maintenance, and transportation. Aviation also includes an investment in an unconsolidated affiliate that was previously part of our government business under our legacy Building & Energy Solutions segment. | Emerging Industries Group | Our Emerging Industries Group is comprised of our Education, Healthcare, and High Tech industry groups. Services include janitorial, facilities engineering, and parking services for clients in these industries. | Technical Solutions | Technical Solutions provides specialized mechanical and electrical services. These services can also be leveraged for cross-selling within B&I, Aviation, and the Emerging Industries Group, both domestically and internationally. | GCA Services | GCA Services is a provider of integrated facility services to educational institutions and commercial facilities. |
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 adjustments resulting from actuarial developments of self-insurance reserves, and direct acquisition costs. Management does not review asset information by segment, therefore we do not present assets in this note. Financial Information by Reportable Segment | | | | | | | | | | | | | | Years Ended October 31, | (in millions) | 2017 | | 2016 | | 2015 | Revenues | | | | | | Business & Industry | $ | 2,992.5 |
| | $ | 2,949.1 |
| | $ | 2,890.3 |
| Aviation | 988.1 |
| | 851.8 |
| | 790.0 |
| Emerging Industries Group | 777.1 |
| | 801.9 |
| | 777.0 |
| Technical Solutions | 439.6 |
| | 425.3 |
| | 296.9 |
| GCA Services | 169.7 |
| | — |
| | — |
| Government Services | 86.5 |
| | 116.7 |
| | 143.7 |
| | $ | 5,453.6 |
| | $ | 5,144.7 |
| | $ | 4,897.8 |
| Operating profit (loss) | | | | | | Business & Industry | $ | 154.0 |
| | $ | 135.4 |
| | $ | 145.5 |
| Aviation | 28.8 |
| | 27.7 |
| | 28.8 |
| Emerging Industries Group | 45.9 |
| | 61.0 |
| | 50.4 |
| Technical Solutions | 39.0 |
| | 28.9 |
| | 17.7 |
| GCA Services | 3.4 |
| | — |
| | — |
| Government Services | 21.8 |
| | (23.4 | ) | | 2.9 |
| Corporate | (185.0 | ) | | (167.2 | ) | | (160.7 | ) | Adjustment for income from unconsolidated affiliates, net, included in Aviation and Government Services | (4.1 | ) | | (6.5 | ) | | (9.0 | ) | Adjustment for tax credits for energy efficient government buildings, included in Technical Solutions | (1.9 | ) | | (1.2 | ) | | (2.0 | ) | | 101.9 |
| | 54.7 |
| | 73.6 |
| Income from unconsolidated affiliates, net | 4.2 |
| | 7.6 |
| | 9.0 |
| Interest expense | (19.2 | ) | | (10.4 | ) | | (10.2 | ) | Income from continuing operations before income taxes | $ | 86.9 |
| | $ | 51.9 |
| | $ | 72.4 |
| | | | | | | Depreciation and amortization(1) | | | | | | Business & Industry | $ | 17.1 |
| | $ | 17.7 |
| | $ | 18.1 |
| Aviation | 13.3 |
| | 12.2 |
| | 13.2 |
| Emerging Industries Group | 5.0 |
| | 5.5 |
| | 5.7 |
| Technical Solutions | 12.5 |
| | 12.3 |
| | 8.7 |
| GCA Services | 10.8 |
| | — |
| | — |
| Government Services | — |
| | 1.6 |
| | 1.8 |
| Corporate | 11.4 |
| | 8.2 |
| | 9.5 |
| | $ | 70.1 |
| | $ | 57.5 |
| | $ | 57.0 |
|
(1) Excludes amortization related to income from unconsolidated affiliates. Geographic Information Based on the Country in Which the Sale Originated(1) | | | | | | | | | | | | | | Years Ended October 31, | (in millions) | 2017 | | 2016 | | 2015 | Revenues | | | | | | United States | $ | 5,126.8 |
| | $ | 4,845.3 |
| | $ | 4,687.2 |
| All other countries | 326.8 |
| | 299.4 |
| | 210.6 |
| | $ | 5,453.6 |
| | $ | 5,144.7 |
| | $ | 4,897.8 |
|
(1) Substantially all of our long-lived assets are related to United States operations.
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