Segment Information

12 Months Ended

Oct. 31, 2012

Segment Information

16. SEGMENT INFORMATION

The Company has four reportable operating segments: Janitorial, Facility Solutions, Parking and Security. These reportable segments were determined based on the evaluation of business performance and allocation of resources by the Company’s Chief Executive Officer (“CEO”). While our CEO evaluates results in a number of different ways, the line of business management structure is the primary basis for the assessment of results.

The accounting policies for the segments are the same as those disclosed within the Company’s significant accounting policies. Management evaluates the performance of each operating segment based on its respective operating income results, which include the allocation of certain centrally incurred costs.

Included in Corporate expenses not allocated to segments, among other items are:

• Certain CEO and other finance and human resource departmental costs

• Certain information technology costs

• Share based compensation costs

• Certain legal costs and settlements

• Current actuarial developments of self insurance reserves related to claims incurred in prior years

• Direct acquisition costs

Financial information for each segment is summarized below.

	Years ended October 31,
(in thousands)	2012			2011			2010
Revenues
Janitorial	$	2,394,344		$	2,380,195		$	2,306,098
Facility Solutions		924,415			899,381			382,629
Parking		615,132			615,679			469,398
Security		365,926			350,377			336,249
Corporate		448			1,210			1,373
		4,300,265			4,246,842			3,495,747
Operating profit
Janitorial		135,967			140,621			140,007
Facility Solutions		31,965			33,384			22,931
Parking		26,189			24,257			22,738
Security		7,835			7,968			7,487
Corporate		(105,390	)		(88,662	)		(84,324	)
Operating profit		96,566			117,568			108,839
Other-than-temporary impairment credit losses on auction rate security recognized in earnings		(313	)		—			(127	)
Income from unconsolidated affiliates, net		6,395			3,915			—
Interest expense		(9,999	)		(15,805	)		(4,639	)
Income from continuing operations before income taxes	$	92,649		$	105,678		$	104,073

During the year ended October 31, 2012, the Company changed the name of its Engineering segment to Facility Solutions to better reflect the variety of end-to-end integrated facility solutions services, building operation and maintenance, and bundled energy solutions services provided to its clients.

Included in Corporate expenses for the year ended October 31, 2011, is a net benefit of $2.7 million related to the settlement on May 17, 2011 of a dispute with the former owners of the acquired assets of Five Star Parking, Network Parking Company Ltd., and System Parking, Inc. (acquired by the Company in fiscal 2010). Such amount was recorded in the Company’s consolidated financial statements as a reduction of selling, general and administrative expenses.

	Years ended October 31,
(in thousands)	2012		2011		2010
Total Assets *
Janitorial	$	863,831	$	859,318	$	902,541
Facility Solutions		464,729		469,807		68,710
Parking		153,593		149,052		145,801
Security		111,293		111,304		112,194
Corporate		275,406		287,909		313,772
	$	1,868,852	$	1,877,390	$	1,543,018
Depreciation and Amortization
Janitorial	$	18,010	$	19,035	$	18,356
Facility Solutions		13,731		15,214		549
Parking		3,512		3,644		2,797
Security		1,218		1,441		1,443
Corporate		14,426		13,324		13,170
	$	50,897	$	52,658	$	36,315
Capital Expenditures
Janitorial	$	12,367	$	10,048	$	12,503
Facility Solutions		851		1,280		79
Parking		2,219		2,023		1,265
Security		203		141		451
Corporate		12,412		8,632		9,644
	$	28,052	$	22,124	$	23,942

* Excludes assets of discontinued operations of $0.4 million, $2.2 million and $5.7 million as of October 31, 2012, 2011 and 2010, respectively.