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Acquisitions | 12 Months Ended
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Oct. 31, 2019
Business Combinations [Abstract] |
Acquisitions | ACQUISITIONS
Acquisition of GCA during 2017 On September 1, 2017, we acquired all of the outstanding stock of GCA, a provider of integrated facility services to educational institutions and commercial facilities, for a purchase price of approximately $1.3 billion. As a result of the acquisition, we are now a leading facilities services provider in the education market. 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. Purchase Price Allocation
|  | As reported at
|  | October 31, 2018
(in millions) |  | (finalized)
Cash and cash equivalents |  | $ | 0.2 |
Trade accounts receivable(1) |  | 116.3 |
Prepaid expenses and other current assets |  | 12.0 |
Property, plant and equipment |  | 37.3 |
Customer relationships(2) |  | 340.0 |
Trade names(2) |  | 8.0 |
Goodwill(3) |  | 926.9 |
Other assets |  | 4.0 |
Trade accounts payable |  | (9.6 | )
Insurance reserves |  | (35.2 | )
Income taxes payable |  | (8.6 | )
Accrued liabilities |  | (38.8 | )
Deferred income tax liability, net |  | (85.6 | )
Other liabilities |  | (8.1 | )
Net assets acquired |  | $ | 1,258.8 |
(1) The gross amount of trade accounts receivable was $121.9 million, of which $5.6 million was deemed uncollectible at October 31, 2018. (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. Financial Information The following table presents our unaudited pro forma results for the year ended October 31, 2017 as though the GCA acquisition occurred on November 1, 2015. These 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 results were adjusted to exclude $24.2 million of acquisition-related costs incurred during 2017, which are included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income. In addition, they 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.
(in millions) | Year Ended October 31, 2017
Pro forma revenue | $ | 6,293.0 |
Pro forma income from continuing operations | 95.5 |
Other 2017 Acquisitions Effective December 1, 2016, we acquired all of the outstanding stock of Mechanical Solutions, Inc. (“MSI”), a provider of specialized HVAC, chiller, and plumbing services, for a purchase price of $12.6 million. The purchase price included up to $1.0 million of undiscounted contingent consideration that was based on the expected achievement of certain pre-established revenue goals. Based on the metrics of these revenue goals, this contingent consideration was reduced to a nominal value at October 31, 2018. As of December 1, 2016, the operations of MSI are included in our Technical Solutions segment. Effective December 1, 2016, we also acquired all of the outstanding stock of OFJ Connections Ltd (“OFJ”), a provider of airport transportation services in the United Kingdom, for a purchase price of $6.3 million. As of December 1, 2016, the operations of OFJ are included in our Aviation segment. Pro Forma and Other Financial Information Except for GCA, we do not present pro forma and other financial information for our other acquisitions, as they are not considered material business combinations individually or on a combined basis.

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