Employee Benefit Plans

12 Months Ended

Oct. 31, 2019

EMPLOYEE BENEFIT PLANS

Defined Benefit Plans

We provide benefits to certain employees under various defined benefit and postretirement benefit plans (collectively, the “Plans”). The Plans were previously amended to preclude new participants. All but one of the Plans are unfunded.

Information for the Plans



	As of October 31,
(in millions)	2019		2018
Net obligations	$	8.4	$	7.4
Projected benefit obligations	16.1		15.0
Fair value of assets	7.8		7.6

At October 31, 2019, assets of the Plans were invested 49% in equities, 49% in fixed income, and 2% in cash. The expected return on assets was $0.4 million during each of 2019, 2018, and 2017. The aggregate net periodic benefit cost for all Plans was $0.6 million for 2019 and $0.2 million during each of 2018 and 2017. Future benefit payments in the aggregate are expected to be $14.2 million.

Deferred Compensation Plans

We maintain deferred compensation plans that permit eligible employees and directors to defer a portion of their compensation. At October 31, 2019 and 2018, the total liability of all deferred compensation was $13.2 million and $13.9 million, respectively, and these amounts are included in “Other accrued liabilities” and “Other noncurrent liabilities” on the accompanying consolidated balance sheets. Under one of our deferred compensation plans, a Rabbi trust was created to fund the obligations, and we are required to contribute a portion of the deferred compensation contributions for eligible participants. The assets held in the Rabbi trust are not available for general corporate purposes. At October 31, 2019 and 2018, the fair value of these assets was $2.5 million and $2.7 million, respectively, and these amounts are included in “Other noncurrent assets” on the accompanying consolidated balance sheets. Aggregate expense recognized under these deferred compensation plans was $0.3 million for 2019 and $0.4 million for each of 2018 and 2017.

Defined Contribution Plans

We sponsor four defined contribution plans covering certain employees that are subject to the applicable provisions of the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code (“IRC”). Certain plans permit a company match of a portion of the participant’s contributions or a discretionary contribution after the participant has met the eligibility requirements set forth in the plan. During 2019, 2018, and 2017, we made matching contributions required by the plans of $24.3 million, $21.6 million, and $13.7 million, respectively.

Multiemployer Pension and Postretirement Plans

We participate in various multiemployer pension plans under union and industry-wide agreements that provide defined pension benefits to employees covered by collective bargaining agreements. Because of the nature of multiemployer plans, there are risks associated with participation in these plans that differ from single-employer plans. Assets contributed by an employer to a multiemployer plan are not segregated into a separate account and are not restricted to provide benefits only to employees of that contributing employer. In the event another participating employer in a multiemployer plan no longer contributes to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, including us. In the event of the termination of a multiemployer pension plan or a withdrawal from a multiemployer pension plan, we could incur material liabilities under applicable law.

Key Information for Individually Significant Multiemployer Defined Benefit Pension Plans⁽¹⁾

($ in millions)

Pension Protection Act

Zone Status⁽³⁾

FIP/RP

Status⁽⁴⁾

Contributions by ABM

Surcharge

Imposed⁽⁵⁾

Expiration Dates of Collective Bargaining Agreements

Pension Fund

EIN/PN⁽²⁾

2019

2018

Pending/
Implemented

2019

2018

2017

Building Service 32BJ Pension Fund

13-1879376 /
001

Red
6/30/2018

Red
6/30/2017

Implemented

19.3

19.9

20.1

12/31/2019

Central Pension Fund of the IUOE & Participating Employers

36-6052390 /
001

Green
1/31/2019

Green
1/31/2018

N/A*

11.7

11.0

10.7

N/A*

4/30/2020 –
12/31/2022

S.E.I.U. National Industry Pension Fund

52-6148540 /
001

Red
12/31/2018

Red
12/31/2017

Implemented

10.6

8.7

7.2

Yes

4/30/2020 –
1/31/2023

SEIU Local 1 & Participating Employers Pension Trust

36-6486542 /
001

Green
9/30/2018

Green
9/30/2017

N/A*

5.1

5.8

6.0

N/A*

4/4/2021

IUOE Stationary Engineers Local 39 Pension Plan

94-6118939 /
001

Green
12/31/2018

Green
12/31/2017

N/A*

4.6

5.2

4.8

N/A*

11/30/2020 –
8/31/2023

Local 68 Engineers Union Pension Plan

51-0176618 /
001

Yellow
6/30/2018

Red
6/30/2017

Implemented

3.2

3.0

2.8

4/30/2020 –
8/31/2022

Western Conference of Teamsters Pension Plan

91-6145047 /
001

Green
12/31/2018

Green
12/31/2017

N/A*

3.1

3.5

N/A*

5/31/2020 –
12/31/2022

All Other Plans:

9.0

8.5

8.0

Total Contributions

66.6

65.3

63.1



*	Not applicable

⁽¹⁾To determine individually significant plans, we evaluated several factors, including our total contributions to the plan, our significance to the plan in terms of participating employees and contributions, and the funded status of the plan.

⁽²⁾ The “EIN/PN” column provides the Employer Identification Number and the three-digit plan number assigned to the plan by the Internal Revenue Service (“IRS”).

⁽³⁾ The Pension Protection Act Zone Status columns provide the two most recently available Pension Protection Act zone statuses from each plan. The zone status is based on information provided to us and other participating employers and is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded.

⁽⁴⁾ Indicates whether a Financial Improvement Plan (“FIP”) for yellow zone plans or a Rehabilitation Plan (“RP”) for red zone plans is pending or implemented.

⁽⁵⁾ Indicates whether our contribution in 2019 included an amount as imposed by a plan in the red zone in addition to the contribution rate specified in the applicable collective bargaining agreement.

Multiemployer Pension Plans for which ABM is a Significant Contributor



Pension Fund		Contributions to the plan exceeded more than 5% of total contributions per most currently available Forms 5500 (as of the plan’s year end)
Arizona Sheet Metal Pension Trust Fund*		6/30/2018, 6/30/2016
Building Service 32BJ Pension Fund		6/30/2018, 6/30/2017, and 6/30/2016
Building Service Pension Plan*		4/30/2018, 4/30/2017, and 4/30/2016
Contract Cleaners Service Employees’ Pension Plan*		12/31/2018, 12/31/2017, and 12/31/2016
Firemen & Oilers Pension Plan of SEIU Local 1*		7/31/2018 and 7/31/2017
SEIU Local 1 & Participating Employers Pension Trust		9/30/2018, 9/30/2017, and 9/30/2016
Massachusetts Service Employees Pension Plan*		12/31/2018, 12/31/2017, and 12/31/2016
S.E.I.U. National Industry Pension Fund		12/31/2018, 12/31/2017, and 12/31/2016
Service Employees International Union Local 1 Cleveland Pension Plan*		12/31/2018, 12/31/2017, and 12/31/2016
Service Employees International Union Local 32BJ, District 36 Building Operators Pension Trust Fund*		12/31/2018, 12/31/2017, and 12/31/2016
Teamsters Local 617 Pension Fund*		2/28/2019, 2/28/2018, and 2/28/2017
Teamsters Local Union No. 727 Pension Plan*		2/28/2019, 2/28/2018, and 2/28/2017

* These plans are not separately listed in our multiemployer table as they represent an insignificant portion of our total multiemployer pension plan contributions.

There have been no significant changes that affect the comparability of total contributions for any of the periods presented.

Multiemployer Defined Contribution Plans

In addition to contributions noted above, we also make contributions to multiemployer defined contribution plans. During 2019, 2018, and 2017, our contributions to the defined contribution plans were $9.0 million, $10.6 million, and $5.4 million, respectively.

Other Multiemployer Benefit Plans

We also contribute to several multiemployer postretirement health and welfare plans based on obligations arising under collective bargaining agreements covering union-represented employees. These plans may provide medical, pharmacy, dental, vision, mental health, and other benefits to employees as determined by the trustees of each plan. The majority of our contributions benefit active employees and, as such, may not constitute contributions to a postretirement benefit plan. However, since we are unable to separate contribution amounts to postretirement benefit plans from contribution amounts paid to benefit active employees, we categorize all such amounts as contributions to postretirement benefit plans. During 2019, 2018, and 2017, our contributions to such plans were $269.8 million, $263.4 million, and $247.9 million, respectively. There have been no significant changes that affect the comparability of total contributions for any of the periods presented.