Acquisitions (Tables)
 6 Months Ended
Apr. 30, 2018
Business Combinations [Abstract]  
Schedule of Consideration Transferred
Consideration Transferred
(in millions, except per share data)
 
 
Shares of ABM common stock, net of shares withheld for taxes
 
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(1)
 
837.5

Total consideration transferred
 
$
1,258.8

(1) Revised during the second quarter of 2018 to reflect a post-closing purchase price adjustment related to a net working capital settlement.
Schedule of Preliminary Purchase Price Allocation
The following table presents our preliminary estimates of fair values of the assets we acquired and the liabilities we assumed on the date of acquisition as previously reported at year-end 2017 and at the end of the second quarter of 2018.

 
As reported at
 

 
As reported at
(in millions)
 
October 31, 2017
 
Adjustments
 
April 30, 2018
Cash and cash equivalents
 
$
2.5

 
$
(2.3
)
 
$
0.2

Trade accounts receivable(1)
 
118.1

 


 
118.1

Prepaid expenses and other current assets
 
10.3

 


 
10.3

Property, plant and equipment
 
41.4

 
0.1

 
41.5

Customer relationships(2)
 
340.0

 
(10.0
)
 
330.0

Trade names(2)
 
9.0

 


 
9.0

Goodwill(3)
 
933.9

 
(0.5
)
 
933.4

Other assets
 
4.2

 
(0.2
)
 
4.0

Trade accounts payable
 
(9.1
)
 
(0.4
)
 
(9.6
)
Insurance reserves
 
(35.5
)
 
(0.2
)
 
(35.6
)
Income taxes payable
 
(16.5
)
 
8.2

 
(8.3
)
Accrued liabilities
 
(36.5
)
 
2.9

 
(33.5
)
Deferred income tax liability, net
 
(92.6
)
 


 
(92.6
)
Other liabilities
 
(8.1
)
 


 
(8.1
)
Net assets acquired
 
$
1,261.3

 
$
(2.4
)
 
$
1,258.8

(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 relationships 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
For the three and six months ended April 30, 2018, we recorded revenue related to GCA of $256.4 million and $508.0 million, respectively, and operating profit of $7.5 million and $12.5 million, respectively. The following table presents our unaudited pro forma results 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 pro forma results do not reflect the cost of integration activities or benefits from expected revenue enhancements and synergies. Accordingly, the 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.
 
 
Three Months Ended
 
Six Months Ended
(in millions)
 
April 30, 2017
 
April 30, 2017
Pro forma revenue
 
$
1,560.5

 
$
3,139.4

Pro forma income from continuing operations
 
31.9

 
46.5