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Revenue (Tables)
 6 Months Ended
Apr. 30, 2019
Revenue from Contract with Customer [Abstract]  
Schedule of New Accounting Pronouncements Impacts on Balance Sheet and Statements of Comprehensive Income
The impacts of adopting Topic 606 and Topic 853 on our unaudited consolidated statements of comprehensive income for the three and six months ended April 30, 2019 were as follows:


Three Months Ended April 30, 2019

Six Months Ended April 30, 2019
(in millions, except per share amounts)

Under Historical Guidance

Effect of Adoption

As Reported

Under Historical Guidance

Effect of Adoption

As Reported
Revenues

$
1,608.1


$
(13.4
)

$
1,594.7


$
3,226.0


$
(23.4
)

$
3,202.6

Operating expenses

1,426.4


(12.2
)

1,414.2


2,883.7


(23.6
)

2,860.2

Selling, general and administrative expenses

112.0


(3.5
)

108.4


225.6


(4.5
)

221.1

Income tax provision

12.0


0.6


12.6


16.1


1.2


17.3

Net income

28.0


1.7


29.7


39.2


3.4


42.7














Net income per common share — Basic

$
0.42


$
0.03


$
0.45


$
0.59


$
0.05


$
0.64

Net income per common share — Diluted

$
0.42


$
0.03


$
0.45


$
0.59


$
0.05


$
0.64

(in millions)
 
Balance at October 31, 2018
 
Adjustments Due to Adoption of Topic 606
 
Balance at November 1, 2018
ASSETS
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
Trade accounts receivable, net
 
$
1,014.1

 
$
(40.1
)
 
$
974.0

Costs incurred in excess of amounts billed
 
—

 
40.1

 
40.1

Other current assets
 
37.0

 
3.6

 
40.6

Other noncurrent assets
 
109.6

 
11.5

 
121.1

 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
Other accrued liabilities
 
$
152.7

 
$
6.0

 
$
158.9

Deferred income tax liability, net
 
37.8

 
2.6

 
40.3

Retained earnings
 
771.2

 
6.5

 
777.6

The impact of adopting Topic 606 on our unaudited consolidated balance sheet as of April 30, 2019 was as follows:
 
 
As of April 30, 2019
(in millions)
 
Under Historical Guidance
 
Effect of Adoption
 
As Reported
ASSETS
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
Other current assets
 
$
42.7

 
$
8.1

 
$
50.9

Other noncurrent assets
 
117.6

 
11.5

 
129.1

 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
Other accrued liabilities
 
$
169.0

 
$
6.0

 
$
175.0

Deferred income tax liability, net
 
31.3

 
1.3

 
32.6

Retained earnings
 
783.6

 
12.3

 
795.9
Revenue from External Customers by Major Service Lines and Segments
 
 
Three Months Ended April 30, 2019
(in millions)
 
B&I
 
Aviation
 
T&M
 
Education
 
Technical Solutions
 
Healthcare
 
Total
Major Service Line
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janitorial(1)
 
$
542.8

 
$
30.4

 
$
184.4

 
$
184.2

 
$
—

 
$
36.6

 
$
978.5

Parking(2)
 
111.2

 
84.2

 
5.9

 
0.8

 
—

 
14.6

 
216.7

Facility Services(3)
 
99.3

 
17.9

 
34.0

 
20.6

 
—

 
15.1

 
186.9

Building & Energy Solutions(4)
 
—

 
—

 
—

 
—

 
127.6

 
—

 
127.6

Airline Services(5)
 
0.2

 
117.4

 
—

 
—

 
—

 
—

 
117.6


 
$
753.4

 
$
250.0

 
$
224.3

 
$
205.6

 
$
127.6

 
$
66.3

 
$
1,627.3

Elimination of inter-segment revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
(32.6
)
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,594.7

 
 
Six Months Ended April 30, 2019
(in millions)
 
B&I
 
Aviation
 
T&M
 
Education
 
Technical Solutions
 
Healthcare
 
Total
Major Service Line
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Janitorial(1)
 
$
1,092.5

 
$
61.5

 
$
372.2

 
$
367.5

 
$
—

 
$
74.6

 
$
1,968.4

Parking(2)
 
225.5

 
170.0

 
13.3

 
1.6

 
—

 
28.3

 
438.8

Facility Services(3)
 
209.5

 
35.9

 
74.8

 
41.3

 
—

 
30.1

 
391.6

Building & Energy Solutions(4)
 
—

 
—

 
—

 
—

 
235.5

 
—

 
235.5

Airline Services(5)
 
0.4

 
234.9

 
0.1

 
—

 
—

 
—

 
235.3

 
 
$
1,527.9

 
$
502.4

 
$
460.4

 
$
410.3

 
$
235.5

 
$
133.0

 
$
3,269.6

Elimination of inter-segment revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
(67.0
)
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
$
3,202.6

(1) Janitorial arrangements provide a wide range of essential cleaning services for commercial office buildings, airports and other transportation centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, and stadiums and arenas.
(2) Parking arrangements provide parking and transportation services for clients at various locations, including airports and other transportation centers, commercial office buildings, educational institutions, health facilities, hotels, and stadiums and arenas. Certain of our management reimbursement, leased, and allowance location arrangements are considered service concession agreements and are accounted for under the guidance of Topic 853. For the three and six months ended April 30, 2019, rent expense related to service concession arrangements, previously recorded within operating expenses, has been recorded as a reduction of the related parking service revenues.
(3) Facility Services arrangements provide onsite mechanical engineering and technical services and solutions relating to a broad range of facilities and infrastructure systems that are designed to extend the useful life of facility fixed assets, improve equipment operating efficiencies, reduce energy consumption, lower overall operational costs for clients, and enhance the sustainability of client locations.
(4) Building & Energy Solutions arrangements provide custom energy solutions, electrical, HVAC, lighting, and other general maintenance and repair services for clients in the public and private sectors. We also franchise certain operations under franchise agreements relating to our Linc Network and TEGG brands.
(5) Airline Services arrangements support airlines and airports with services ranging from passenger assistance, catering logistics, and airplane cabin maintenance.
Contract with Customer, Asset and Liability
The following tables present the balances in our contract assets and contract liabilities:
(in millions)
 
April 30, 2019
 
November 1, 2018
Contract assets
 
 
 
 
Billed trade receivables(1)
 
$
988.6

 
$
918.9

Unbilled trade receivables(1)
 
79.8

 
74.3

Costs incurred in excess of amounts billed(2)
 
53.8

 
40.1

Capitalized commissions(3)
 
19.6

 
15.1

(1) Included in trade accounts receivable, net, on the consolidated balance sheets. The fluctuation correlates directly to the execution of new customer contracts and to invoicing and collections from customers in the normal course of business.
(2) Increase is primarily due to the timing of payments on our contracts measured using the cost-to-cost method of revenue recognition.
(3) Included in other current assets and other noncurrent assets on the consolidated balance sheets. During the six months ended April 30, 2019, we capitalized $7.9 million of new costs and amortized $3.4 million of previously capitalized costs. There was no impairment loss recorded on the costs capitalized.
(in millions)
 
Six Months Ended
April 30, 2019
Contract liabilities(1)
 
 
Balance at beginning of period
 
$
41.7

Additional contract liabilities
 
204.5

Recognition of deferred revenue
 
(195.7
)
Balance at end of period
 
$
50.5

(1) Included in other accrued liabilities on the consolidated balance sheets.