Acquisitions (Tables)

12 Months Ended

Oct. 31, 2017

Consideration Transferred



(in millions, except per share data)
Shares of ABM common stock, net of shares withheld for taxes⁽¹⁾	9.4
ABM common stock closing market price at acquisition date	$	44.63
Fair value of ABM common stock at closing	421.3
Cash consideration	839.9
Total consideration transferred	$	1,261.3

⁽¹⁾Certain of these shares are subject to registration rights.

Schedule of Preliminary Purchase Price Allocation

Our preliminary purchase price allocation is based on information that is currently available, and we are continuing to evaluate the underlying inputs and assumptions used in our valuations. Accordingly, consideration and purchase price allocations are subject to, among other items: working capital adjustments; further analysis of tax accounts, including deferred tax liabilities; and final valuation of identifiable intangible assets.



(in millions)
Cash and cash equivalents	$	2.5
Trade accounts receivable⁽¹⁾	118.1
Prepaid expenses and other current assets	10.3
Property, plant and equipment	41.4
Customer relationships⁽²⁾	340.0
Trade name⁽²⁾	9.0
Goodwill⁽³⁾	933.9
Other assets	4.2
Trade accounts payable	(9.1		)
Insurance reserves	(35.5		)
Income taxes payable	(16.5		)
Accrued liabilities	(36.5		)
Deferred income tax liability, net	(92.6		)
Other liabilities	(8.1		)
Net assets acquired	$	1,261.3

⁽¹⁾ The gross amount of trade accounts receivable was $122.0 million, of which $3.9 million is expected to be uncollectible.

⁽²⁾The amortization periods for the acquired intangible assets are 15 years for customer contracts and 2 years for trade names.

⁽³⁾Goodwill is largely attributable to value we expect to obtain from long-term business growth, the established workforce, and buyer-specific synergies. This goodwill is not deductible for income tax purposes.

Schedule of Pro Forma Financial Information

The following table presents our unaudited pro forma results for 2017 and 2016 as though the GCA acquisition occurred on November 1, 2015. The pro forma results include adjustments for the estimated amortization of intangible assets, interest expense, and the income tax impact of the pro forma adjustments at the statutory rate of 41%. These unaudited pro forma results do not reflect the cost of integration activities or benefits from expected revenue enhancements and synergies. Accordingly, the unaudited pro forma information is not necessarily indicative of the results that would have been achieved if the acquisition had been effective on November 1, 2015.



	Years Ended October 31,
(in millions)	2017		2016
Revenue	$	6,293.0	$	6,153.6
Net income (loss) from continuing operations	90.4		(0.6		)