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Self-Insurance
6 Months Ended
Apr. 30, 2011
Self-Insurance [Abstract]  
Self-Insurance
6. Self-Insurance
The Company evaluates the adequacy of its self-insurance reserves in conjunction with rates considering most recently completed actuarial reports and subsequent experience. During the remainder of 2011, actuarial reports are expected to be completed for the Company’s significant programs using recent claims data and may result in adjustments to earnings during the third and fourth quarters of 2011.
Upon the acquisition of Linc, the Company is a member of a group captive insurance company to which it pays premiums for Linc’s exposures related to worker’s compensation, general liability and auto programs. Based primarily on the Company’s loss experience as a member of the captive, the Company is also subject to assessments of additional premiums, subject to a defined annual cap. Such additional exposure is not material.
At April 30, 2011, the Company had $107.1 million in standby letters of credit (primarily related to its workers’ compensation, general liability, automobile, and property damage programs), $35.9 million in restricted insurance deposits, and $191.1 million in surety bonds (of which $28.6 million supported insurance claim liabilities). At October 31, 2010, the Company had $100.8 million in standby letters of credit, $36.2 million in restricted insurance deposits, and $112.5 million in surety bonds (of which $29.3 million supported insurance claim liabilities).