Held For Sale

12 Months Ended

Oct. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Held For Sale

HELD FOR SALE

    During the fourth quarter of 2016, in connection with the key priorities of our 2020Vision, we decided to sell our Government Services business. In connection with the held-for-sale classification, we were required to measure the Government Services business at the lower of its carrying value or fair value less estimated costs to sell. As a result, we recorded an impairment charge of $22.5 million during 2016. Included in the total charge was a full write down of goodwill of $6.0 million. We have classified the remaining assets and liabilities as current assets held for sale and current liabilities held for sale, as we expect to complete the sale during 2017. This business is currently included within continuing operations of the Building & Energy Solutions segment, and under future segment reporting it will be a separate segment until it is sold.

Major Classes of Assets and Liabilities Held for Sale

(in millions)	October 31, 2016
Trade accounts receivable, net	$	31.9
Investments in unconsolidated affiliates	7.7
Other assets	4.5
Assets held for sale	44.1
Trade accounts payable	14.4
Other accrued liabilities	4.8
Liabilities held for sale	$	19.2

Determining the fair value of a held-for-sale business involves significant judgments and assumptions. Development of estimates of fair values in this circumstance is complex and is dependent upon, among other factors, the composition of assets in the disposal group, the comparability of the disposal group to similar market transactions, and negotiations with third-party purchasers. Such factors bear directly on the range of potential fair values and the selection of the best estimates. In determining the fair value of our Government Services business, we used the income and market approaches, which utilize sales growth rates, gross margin patterns, discount rates, recent indicators of market activity, and other factors that are categorized as Level 3 inputs.

DISCONTINUED OPERATIONS

     On October 26, 2015, in connection with our 2020Vision, we sold substantially all of the assets of our Security business to Universal Protection Service, L.P. (“UPS”) for cash proceeds of $131.0 million, subject to a working capital adjustment. During 2016, the working capital adjustment resulted in a payment to UPS of $3.1 million. We reduced the gain on sale recorded in 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 were 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.

Summarized Results of Operations and Cash Flows from Discontinued Operations

	Years Ended October 31,
(in millions)	2016			2015(1)			2014
Revenues	$	—		$	392.7		$	383.1
Expenses	6.0			383.1			369.3
Operating (loss) profit	(6.0		)	9.6			13.8
Gain on sale before income taxes	—			23.6			—
Working capital adjustment to previously recorded gain	(3.1		)	—			—
(Loss) income from discontinued operations before income taxes	(9.2		)	33.2			13.8
Income tax benefit (provision)(2)	4.0			(11.0		)	(5.1		)
Net (loss) income from discontinued operations	$	(5.1	)	$	22.2		$	8.7
Net cash (used in) provided by operating activities of discontinued operations(3)	$	(27.0	)	$	0.9		$	5.6

⁽¹⁾ Includes a $1.6 million unfavorable legal settlement related to our former Lighting segment, which we disposed of in 2008.

⁽²⁾ For 2016 and 2015, income taxes were positively impacted by the retroactive reinstatement of the Work Opportunity Tax Credits (“WOTC”).

⁽³⁾ During 2016, we paid $20.0 million in taxes in connection with the sale of our Security business.