Income Taxes (Tables)

12 Months Ended

Oct. 31, 2014

Income Tax Disclosure [Abstract]

Components of Income Tax Provision

Components of Income Tax Provision

	Years Ended October 31,
(in millions)	2014		2013		2012
Current:
Federal	$	36.2	$	15.3	$	9.7
State	9.1		10.9		10.5
Foreign	1.3		0.8		—
Deferred:
Federal	0.8		10.0		11.1
State	1.4		2.5		(1.3		)
	$	48.8	$	39.5	$	30.0

Reconciliation of US Statutory Tax Rate to Annual Effective Tax Rate

Reconciliation of the U.S. Statutory Tax Rate to Annual Effective Tax Rate

	Years Ended October 31,
	2014		2013		2012
Tax rate reconciliation:
Statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal tax benefit	6.5	%	6.5	%	6.5	%
Federal and state tax credits	(2.6	)%	(8.6	)%	(5.5	)%
Impact of change in state tax rate	0.1	%	0.5	%	1.2	%
Changes in uncertain tax positions	(1.7	)%	(1.4	)%	(7.2	)%
Nondeductible expenses and other, net	1.9	%	3.1	%	2.4	%
Annual effective tax rate	39.2	%	35.1	%	32.4	%

Components of Deferred Tax Assets and Liabilities

Components of Deferred Tax Assets and Liabilities

	As of October 31,
(in millions)	2014			2013
Deferred tax assets:
Self-insurance claims (net of recoverables)	$	113.0		$	114.9
Deferred and other compensation	35.6			33.6
Accounts receivable allowances	3.7			3.9
Settlement liabilities	2.0			0.6
Other accruals	3.6			2.3
Other comprehensive income	1.2			1.4
State taxes	0.8			0.7
State net operating loss carryforwards	7.1			8.1
Tax credits	5.1			6.1
Other	0.9			1.0
	173.0			172.6
Valuation allowance	(6.2		)	(6.2		)
Total deferred tax assets	166.8			166.4
Deferred tax liabilities:
Property, plant and equipment	(1.1		)	(5.5		)
Goodwill and other acquired intangibles	(135.5		)	(126.9		)
Total deferred tax liabilities	(136.6		)	(132.4		)
Net deferred tax assets	$	30.2		$	34.0

Reconciliation of Total Unrecognized Tax Benefits

Reconciliation of Total Unrecognized Tax Benefits

	Years Ended October 31,
(in millions)	2014			2013			2012
Balance at beginning of year	$	87.6		$	88.4		$	95.9
Additions for tax positions related to the current year	1.4			1.7			0.6
Reductions for tax positions related to the current year	—			(0.6		)	—
Additions for tax positions related to prior years	—			0.6			0.9
Reductions for tax positions related to prior years	—			(0.1		)	(7.3		)
Reductions for expiration of statute of limitations	(3.2		)	(1.5		)	(0.1		)
Settlements	(0.3		)	(0.9		)	(1.6		)
Balance as of October 31	$	85.5		$	87.6		$	88.4

Summary of Income Tax Examinations

The following table summarizes by entity the tax years that are either currently being examined or remain open for examination:

Entity	Open by statute
ABM state tax returns*	10/31/2010 – 10/31/2014
ABM federal tax returns	10/31/2011 – 10/31/2014
Air Serv	6/30/2011 – 10/31/2012
HHA	12/31/2011 – 10/31/2012

* We are currently being examined by the taxing authorities in the states of New Jersey and Michigan.