INSURANCE

We use a combination of insured and self-insurance programs to cover workers’ compensation, general liability, automotive, property damage, and other insurable risks. For the majority of these insurance programs, we retain the initial $1.0 million of exposure on a per-claim basis either through deductibles or self-insured retentions. Beyond the retained exposures, we have varying primary policy limits between $1.0 million and $5.0 million per occurrence. To cover general liability losses above these primary limits, we maintain commercial insurance umbrella policies that provide aggregate limits of $200.0 million. Our insurance policies generally cover workers’ compensation losses to the full extent of statutory requirements. Additionally, to cover property damage risks above our retained limits, we maintain policies that provide limits of $75.0 million.

The adequacy of workers’ compensation, general liability, automotive, and property damage insurance claims reserves is based upon actuarial estimates of required reserves considering the most recently completed actuarial reports in 2014. Actuarial reports are expected to be completed for our significant programs using recent claims data and may result in adjustments to earnings during the third and fourth quarters of 2015.

We are also self-insured for certain employee medical and dental plans. We retain up to $0.4 million of exposure on a per-participant per-year basis with respect to claims under our medical plan. During the three months ended April 30, 2015, actuarial evaluations were completed for our medical and dental plans for the calendar year ended December 31, 2014. The results of the actuarial evaluations indicated a higher than expected incurred but not reported liability for medical and dental claims. As a result, we increased our reserves by $3.0 million during the three months ended April 30, 2015, which was recorded as part of Corporate expenses.

We had insurance claim reserves totaling $343.9 million and $349.7 million at April 30, 2015 and October 31, 2014, respectively. The balances at April 30, 2015 and October 31, 2014 include $7.7 million and $4.8 million in reserves, respectively, related to our medical and dental self-insured plans. We also had insurance recoverables, which we include in “Other current assets” and “Other assets” on the accompanying unaudited consolidated balance sheets, totaling $66.5 million and $66.4 million at April 30, 2015 and October 31, 2014, respectively.

Instruments Used to Collateralize Our Insurance Obligations



(in millions)	April 30, 2015		October 31, 2014
Standby letters of credit	$	108.6	$	111.1
Surety bonds	52.3		52.5
Restricted insurance deposits	11.4		11.5
Total	$	172.3	$	175.1