Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Oct. 31, 2019

Schedule of Estimated Useful Lives of Property, Plant and Equipment

We determine depreciation for financial reporting purposes using the straight-line method over the following estimated useful lives:



Category	Years
Computer equipment and software	3–5
Machinery and other equipment	3–5
Transportation equipment	1.5–10
Buildings	10–40
Furniture and fixtures	5

Schedule of Management Reimbursement Revenue by Segment



	Years Ended October 31,
(in millions)	2019		2018		2017
Business & Industry	$	283.1	$	276.6	$	252.9
Aviation	95.5		99.9		80.4
Total	$	378.7	$	376.4	$	333.2

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

During the first quarter of 2019, we also adopted the following ASUs with no material impact on our consolidated financial statements:



ASU	Topic	Method of Adoption
2016-01	Financial Instruments	Modified retrospective
2016-15	Statement of Cash Flows — Classification of Certain Cash Receipts and Cash Payments	Retrospective
2016-16	Income Taxes — Intra-Entity Transfers of Assets Other Than Inventory	Modified retrospective
2016-18	Statement of Cash Flows — Restricted Cash	Retrospective
2017-07	Compensation — Retirement Benefits	Retrospective
2017-09	Compensation — Stock Compensation	Prospective
2018-02	Income Statement — Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	Early adopted; we elected not to reclassify any stranded tax effects of the Tax Cuts and Jobs Act (the “Tax Act”) due to the insignificance of the amount remaining in AOCI.
2018-04	Investments — Debt Securities	Adopted in conjunction with ASU 2016-01



(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 consolidated balance sheet as of October 31, 2019 was as follows:



	As of October 31, 2019
(in millions)	Under Historical Guidance		Effect of Adoption		As Reported
ASSETS
Current assets
Other current assets	$	46.3	$	9.2	$	55.5
Other noncurrent assets	107.7		12.7		120.3

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Other accrued liabilities	$	153.1	$	5.1	$	158.2
Deferred income tax liability, net	47.3		0.5		47.7
Retained earnings	840.1		16.2		856.3

The impact of adopting Topic 606 and Topic 853 on our consolidated statements of comprehensive income for the year ended October 31, 2019 was as follows:



	Year Ended October 31, 2019
(in millions, except per share amounts)	Under Historical Guidance		Effect of Adoption			As Reported
Revenues	$	6,546.2	$	(47.6	)	$	6,498.6
Operating expenses	5,816.2		(48.6		)	5,767.5
Selling, general and administrative expenses	459.7		(6.7		)	452.9
Income tax provision	30.7		2.0			32.7
Net income	121.6		5.8			127.4

Net income per common share — Basic	$	1.83	$	0.09		$	1.91
Net income per common share — Diluted	$	1.82	$	0.09		$	1.90