Segment Information

9 Months Ended

Jul. 31, 2014

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our reportable segments consist of: Janitorial, Facility Services, Parking, Security, Building & Energy Solutions, and Other. 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.” Management evaluates the performance of each reportable segment based on its respective operating profit results, which include the allocation of certain centrally incurred costs.

During the three months ended July 31, 2014, we completed our annual actuarial evaluations for the majority of our casualty insurance programs, which showed favorable developments for 2014. Refer to Note 7, “Insurance,” for further details on the results of our actuarial evaluations. As a result of these evaluations, we reduced our expected reserves for 2014 insurance claims by $6.2 million and, consistent with prior periods, we allocated this benefit to our operating segments based upon underlying exposures. For years prior to 2014, the analysis showed unfavorable developments in our insurance claims, and as a result we increased our expected reserves by $10.5 million. Consistent with prior periods, this adjustment is recorded in Corporate. Additionally, other Corporate expenses not allocated to segments, among other items, include:

• certain CEO and other finance and human resource departmental costs;

• certain information technology costs;

• share-based compensation costs;

• certain legal costs and settlements; and

• direct acquisition costs.

Effective in the first quarter of 2014, certain operations were transferred between our Janitorial segment and our Air Serv business (the operations of which are reported in our Other segment), to align them with the activities conducted in the respective segments. The net impact of these changes on the reported revenues for the three and nine months endedJuly 31, 2013 was a reclassification of $4.2 million and $11.6 million, respectively, from our Other segment to our Janitorial segment. The net impact of these changes on the reported operating profit for the three months ended July 31, 2013 was insignificant. The net impact of these changes on the reported operating profit for the nine months ended July 31, 2013 was a reclassification of $0.8 million from our Other segment to our Janitorial segment. Additionally, certain sales and marketing costs associated with energy and government growth initiatives were transferred from Corporate to our Building & Energy Solutions segment, resulting in a reclassification of expenses of $0.8 million and $2.5 million from Corporate to the Building & Energy Solutions segment during the three and nine months endedJuly 31, 2013, respectively.

Prior-period segment results have been restated to conform to these changes. Financial information for each reportable segment is summarized below:

	Three Months Ended July 31,						Nine Months Ended July 31,
(in millions)	2014			2013			2014			2013
Revenues:
Janitorial	$	648.3		$	626.1		$	1,917.1		$	1,848.2
Facility Services	151.0			152.8			452.2			456.6
Parking	156.5			154.0			459.4			456.8
Security	95.4			96.2			288.9			284.4
Building & Energy Solutions	127.5			104.9			348.1			286.8
Other	97.4			82.6			268.2			239.0
Corporate	—			0.2			—			0.7
	$	1,276.1		$	1,216.8		$	3,733.9		$	3,572.5
Operating profit:
Janitorial	$	40.4		$	34.4		$	105.7		$	101.3
Facility Services	7.5			7.0			18.4			19.3
Parking	9.4			8.2			21.5			19.1
Security	3.9			4.0			8.7			7.8
Building & Energy Solutions	6.8			5.9			13.0			7.5
Other	4.5			3.8			8.8			7.9
Corporate	(37.2		)	(32.9		)	(86.3		)	(77.2		)
Adjustment for income from unconsolidated affiliates, net, included in Building & Energy Solutions	(1.6		)	(1.7		)	(4.3		)	(4.1		)
	33.7			28.7			85.5			81.6
Income from unconsolidated affiliates, net	1.6			1.6			4.3			3.9
Interest expense	(2.7		)	(3.4		)	(8.1		)	(9.7		)
Income before income taxes	$	32.6		$	26.9		$	81.7		$	75.8