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Insurance | 6 Months Ended
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Apr. 30, 2020
Insurance [Abstract] |
Insurance | INSURANCE We use a combination of insured and self-insurance programs to cover workers’ compensation, general liability, automobile liability, property damage, and other insurable risks. For the majority of these insurance programs, we retain the initial $1.0 million to $1.5 million of exposure on a per-occurrence basis, either through deductibles or self-insured retentions. Beyond the retained exposures, we have varying primary policy limits ranging between $1.0 million and $5.0 million per occurrence. To cover general liability and automobile liability losses above these primary limits, we maintain commercial umbrella insurance policies that provide aggregate limits of $200.0 million. Our insurance policies generally cover workers’ compensation losses to the full extent of statutory requirements. Additionally, to cover property damage risks above our retained limits, we maintain policies that provide per occurrence limits of $75.0 million. We are also self-insured for certain employee medical and dental plans. We maintain stop-loss insurance for our self-insured medical plan under which we retain up to $0.5 million of exposure on a per-participant, per-year basis with respect to claims. We maintain our reserves for workers’ compensation, general liability, automobile liability, and property damage insurance claims based upon known trends and events and the actuarial estimates of required reserves considering the most recently completed actuarial reports. We use all available information to develop our best estimate of insurance claims reserves as information is obtained. The results of actuarial reviews are used to estimate our insurance rates and insurance reserves for future periods and to adjust reserves, if appropriate, for prior years. Actuarial Review and Update Performed During 2020 We review our self-insurance liabilities on a regular basis and adjust our accruals accordingly. Actual claims activity or development may vary from our assumptions and estimates, which may result in material losses or gains. As we obtain additional information that affects the assumptions and estimates used in our reserve liability calculations, we adjust our self-insurance rates and reserves for future periods and, if appropriate, adjust our reserves for claims incurred in prior accounting periods. During the first quarter of 2020, we performed an actuarial review of the majority of our casualty insurance programs that evaluated all changes made to claims reserves and claims payment activity for the period of May 1, 2019 through October 31, 2019 (the “Actuarial Review”). This Actuarial Review was comprehensive in nature and was based on loss development patterns, trend assumptions, and underlying expected loss costs during the period analyzed. During the second quarter of 2020, we performed an interim actuarial update of the majority of our casualty insurance programs that considered changes in claims development and claims payment activity for the period of November 1, 2019 through January 31, 2020 (the “Interim Update”). This Interim Update was abbreviated in nature based on actual versus expected development during the periods analyzed and relied on the key assumptions in the Actuarial Review (most notably loss development patterns, trend assumptions, and underlying expected loss costs). Based on the results of the Actuarial Review, at January 31, 2020, we decreased our total reserves for prior periods by $6.6 million. The results of the Interim Update performed during the three months ended April 30, 2020 did not require a further adjustment to our reserves in the aggregate. For the six months ended April 30, 2020, the total decrease to our reserves for claims related to prior periods was $6.6 million. This adjustment compares to a $5.0 million increase to prior year claims during the six months ended April 30, 2019. We will continue to assess ongoing developments, which may result in further adjustments to reserves. Insurance Related Balances and Activity
(in millions) | April 30, 2020 |  | October 31, 2019
Insurance claim reserves, excluding medical and dental | $ | 518.2 |  |  | $ | 507.8 |
Medical and dental claim reserves | 14.9 |  |  | 7.2 |
Insurance recoverables | 64.5 |  |  | 64.5 |
At April 30, 2020 and October 31, 2019, insurance recoverables are included in both “Other current assets” and “Other noncurrent assets” on the accompanying unaudited Consolidated Balance Sheets. Instruments Used to Collateralize Our Insurance Obligations
(in millions) | April 30, 2020 |  | October 31, 2019
Standby letters of credit | $ | 143.6 |  |  | $ | 141.0 |
Surety bonds | 85.4 |  |  | 90.8 |
Restricted insurance deposits | 0.7 |  |  | 0.8 |
Total | $ | 229.7 |  |  | $ | 232.6 |

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- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI http://asc.fasb.org/topic&trid=2303980 + Details
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