Discontinued Operations

9 Months Ended

Jul. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On October 26, 2015, in connection with our 2020 Vision, we sold substantially all of the assets of our Security business to Universal Protection Service, LP (“UPS”) for cash proceeds of $131.0 million, subject to a working capital adjustment. In the second quarter of 2016, the working capital adjustment related to the sale was finalized, resulting in a payment to UPS of $3.1 million. We reduced the gain on sale recorded in the fourth quarter of 2015 by the amount of this adjustment.

Our discontinued operations is comprised of amounts that were directly related to the operations of this former business, including certain costs that were previously recorded in Corporate expenses. In addition, certain general corporate expenses that were previously allocated to the former Security business are now allocated to Corporate expenses and to the Janitorial segment. Discontinued operations also includes both costs related to ongoing legal cases and insurance reserves associated with the former Security business. We will continue to reflect these types of costs within discontinued operations in future periods. Refer to Note 15, “Segment Information,” for further information.

Summarized Results of Operations and Cash Flows from Discontinued Operations

	Three Months Ended July 31,					Nine Months Ended July 31,
(in millions)	2016			2015		2016			2015
Revenues	$	—		$	98.9	$	—		$	287.5
Expenses	2.9			98.6		4.7			281.2
Working capital adjustment to previously recorded gain	—			—		3.1			—
(Loss) income from discontinued operations before income taxes	(2.9		)	0.3		(7.8		)	6.3
Income tax benefit (provision)(1)	1.1			—		3.9			(0.3		)
Net (loss) income from discontinued operations	$	(1.8	)	$	0.3	$	(3.9	)	$	6.0
Net cash used in operating activities of discontinued operations(2)						$	(25.6	)	$	(3.5	)

⁽¹⁾ For the nine months ended July 31, 2016, the income tax benefit includes the retroactive reinstatement of the Work Opportunity Tax Credits (“WOTC”).

⁽²⁾ During the first quarter of 2016, we paid $20.6 million in taxes in connection with the sale of our Security business.