INSURANCE

12 Months Ended

Oct. 31, 2025

We utilize a combination of insured and self-insurance programs to manage risks associated with workers’ compensation, general liability, automobile liability, property damage, and other insurable exposures. For most of these programs, we retain the initial $1.0 million to $5.0 million of exposure per occurrence through deductibles or self-insured retentions. To protect against losses exceeding the retained deductible or self-insured retention, we carry commercial umbrella insurance providing aggregate coverage of up to $200.0 million for general liability and automobile liability claims. Our workers’ compensation insurance provides coverage to the full extent of statutory requirements. For property damage risks, we maintain policies that provide per-occurrence limits of $75.0 million above our retained amounts. We are also self-insured for certain employee medical and dental benefits and maintain stop-loss insurance for our self-insured medical plan under which we retain up to $0.5 million of exposure per participant, per policy year.

We maintain reserves for workers’ compensation, general liability, automobile liability, and property damage insurance claims based on known trends, current events, and actuarial estimates of required reserves, as reflected in our most recently completed actuarial reports. These reserves represent our best estimate of potential liabilities for unpaid losses and loss adjustment expenses. The estimate of the ultimate unpaid obligation for such risks includes both case reserves for reported claims and an amount for losses incurred but not yet reported as of the balance sheet date. The results of actuarial reviews are used to estimate our insurance rates and insurance reserves for future periods and to adjust reserves, if appropriate, for prior years.

Insurance Reserve Adjustments

Actuarial Reviews and Updates Performed During 2025

We utilize a combination of third-party insurance and self-insurance mechanisms, including a wholly owned captive insurance subsidiary, to manage potential liabilities associated with automobile liability, general liability, and workers’ compensation risks. Claim and claim adjustment expense reserves represent management’s estimates of the amounts required to resolve all outstanding claims, including IBNR claims, as of the reporting date.

Reserves are determined using generally accepted actuarial methods applied to historical claims data and adjusted for assumptions regarding loss development patterns, expected loss costs, and trends in claim frequency and severity. Estimates also consider factors such as settlement practices, inflation, and changes in economic, legal, and social environments. Because reserve estimation involves significant judgment and inherent variability, actual results may differ from recorded amounts. Management believes current reserves are reasonable and adequate based on available information and actuarial analyses.

During 2025, we completed comprehensive actuarial reviews of our casualty insurance programs (the “Actuarial Reviews”) covering the periods of May 1, 2024, through October 31, 2024, November 1, 2024, through April 30, 2025, and May 1, 2025, through September 30, 2025. The Actuarial Reviews evaluated reserve adequacy based on loss-development patterns, trend assumptions, and underlying expected loss costs. During the second quarter of 2025, we performed interim actuarial update (the “Interim Update”) reflecting actual versus expected claim development and payment activity for the respective periods, relying on key assumptions from the Actuarial Reviews.

Based on these analyses, we increased our total reserves related to prior year known claims and estimated IBNR losses during 2025 by $23.3 million. The adverse development was primarily attributable to higher-than-expected development on workers’ compensation claims in California and general liability claims from prior years. In 2024, we increased our total reserves related to prior year claims by $20.3 million.

Insurance-Related Balances and Activity


	As of October 31,
(in millions)	2025		2024
Insurance claim reserves, excluding medical and dental	$	649.5	$	608.4
Medical and dental claim reserves and other	10.6		11.0
Insurance recoverables	90.8		91.0

At October 31, 2025 and 2024, insurance recoverables are included in both “Other current assets” and “Other noncurrent assets” on the accompanying Consolidated Balance Sheets.

Casualty Program Insurance Reserves Rollforward


	Years Ended October 31,
(in millions)	2025		2024		2023
Net balance at beginning of year	$	517.3	$	487.9	$	479.9
Change in case reserves plus IBNR Claims — current year	179.1		166.2		154.2
Change in case reserves plus IBNR Claims — prior years	23.3		20.3		(14.8)
Claims paid	(161.1)		(157.3)		(131.4)

Net balance, October 31(1)	558.6		517.3		487.9
Recoverables	90.8		91.0		67.1
Gross balance, October 31	$	649.5	$	608.4	$	555.0

(1) Includes reserves related to discontinued operations of approximately $0.7 million for 2025, $0.7 million for 2024, and $0.1 million for 2023.

Instruments Used to Collateralize Our Insurance Obligations


	As of October 31,
(in millions)	2025		2024
Standby letters of credit	$	18.7	$	53.1
Surety bonds and surety-backed letters of credit	213.9		175.3
Restricted insurance deposits	4.8		2.3
Total	$	237.4	$	230.7

- Definition

The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

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