XML 54 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquisitions (Tables)
 12 Months Ended
Oct. 31, 2018
Business Combinations [Abstract]  
Schedule of Consideration Transferred
Consideration Transferred
(in millions, except per share data)
 
 
Shares of ABM common stock, net of shares withheld for taxes
 
9.4

ABM common stock closing market price at acquisition date
 
$
44.63

Fair value of ABM common stock at closing
 
421.3

Cash consideration(1)
 
837.5

Total consideration transferred
 
$
1,258.8

(1) Revised during the second quarter of 2018 to reflect a post-closing purchase price adjustment related to a net working capital settlement.
Schedule of Preliminary Purchase Price Allocation
Purchase Price Allocation
 
 
As reported at
 
 
 
As reported at
(in millions)
 
October 31, 2017
 
Adjustments
 
October 31, 2018
Cash and cash equivalents
 
$
2.5

 
$
(2.3
)
 
$
0.2

Trade accounts receivable(1)
 
118.1

 
(1.8
)
 
116.3

Prepaid expenses and other current assets
 
10.3

 
1.7

 
12.0

Property, plant and equipment
 
41.4

 
(4.1
)
 
37.3

Customer relationships(2)
 
340.0

 
—

 
340.0

Trade names(2)
 
9.0

 
(1.0
)
 
8.0

Goodwill(3)
 
933.9

 
(7.0
)
 
926.9

Other assets
 
4.2

 
(0.2
)
 
4.0

Trade accounts payable
 
(9.1
)
 
(0.4
)
 
(9.6
)
Insurance reserves
 
(35.5
)
 
0.3

 
(35.2
)
Income taxes payable
 
(16.5
)
 
7.9

 
(8.6
)
Accrued liabilities
 
(36.5
)
 
(2.3
)
 
(38.8
)
Deferred income tax liability, net
 
(92.6
)
 
7.0

 
(85.6
)
Other liabilities
 
(8.1
)
 
—

 
(8.1
)
Net assets acquired
 
$
1,261.3

 
$
(2.4
)
 
$
1,258.8

(1) The gross amount of trade accounts receivable was $121.9 million, of which $5.6 million is deemed uncollectible.
(2) The amortization periods for the acquired intangible assets are 15 years for customer relationships and 2 years for trade names.
(3) Goodwill is largely attributable to value we expect to obtain from long-term business growth, the established workforce, and buyer-specific synergies. This goodwill is not deductible for income tax purposes.
Schedule of Pro Forma Financial Information
Accordingly, the unaudited pro forma information is not necessarily indicative of the results that would have been achieved if the acquisition had been effective on November 1, 2015.
 
Years Ended October 31,
(in millions)
2017
 
2016
Pro forma revenue
$
6,293.0

 
$
6,153.6

Pro forma income from continuing operations
95.5

 
1.1