XML 48 R23.htm IDEA: XBRL DOCUMENT
v3.24.4

SHARE-BASED COMPENSATION PLANS | 12 Months Ended
--- | ---
Oct. 31, 2024
Share-Based Payment Arrangement [Abstract] |
SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS We use various share-based compensation plans to provide incentives for our key employees and non-employee members of our Board of Directors. Currently, these incentives primarily consist of RSUs and performance shares. On May 2, 2006, our stockholders approved the 2006 Equity Incentive Plan, which was last amended and restated on March 7, 2018 (as amended and restated, the “2006 Equity Plan”). The 2006 Equity Plan is an omnibus plan that provides for a variety of equity and equity-based award vehicles, including stock options, stock appreciation rights, RSUs, performance shares, and other share-based awards. Shares subject to awards that terminate without vesting or exercise are available for future awards under the 2006 Equity Plan. Certain of the awards under the 2006 Equity Plan may qualify as “performance-based” compensation under the IRC. On March 24, 2021, our stockholders approved the 2021 Equity and Incentive Compensation Plan (the “2021 Equity Plan”). The 2021 Equity Plan is an omnibus plan that provides for a variety of equity and equity-based award vehicles, including stock options, stock appreciation rights, RSUs, performance shares, and other share-based awards. Shares subject to awards that terminate without vesting or exercise are available for future awards under the 2021 Equity Plan. Certain of the awards under the 2021 Equity Plan may qualify as “performance-based” compensation under the IRC. No further shares are authorized for issuance under the 2006 Equity Plan. There are 3,975,000 total shares of common stock authorized for issuance under the 2021 Equity Plan, and at October 31, 2024, there were 1,308,462 shares of common stock available for grant for future equity-based compensation awards. In addition, there are certain plans under which we can no longer issue awards, such as the 2006 Equity Plan, although awards outstanding under such plans may still vest and be exercised. We also maintain an employee stock purchase plan, which our stockholders approved on March 9, 2004 (the “2004 Employee Stock Purchase Plan”). As amended, there are 4,000,000 total shares of common stock authorized for issuance under the 2004 Employee Stock Purchase Plan. Effective May 1, 2006, the 2004 Employee Stock Purchase Plan is no longer considered compensatory and the values of the awards are no longer treated as share-based compensation expense. Additionally, as of that date, the purchase price became 95% of the fair value of our common stock price on the last trading day of the month. Employees may designate up to 10% of their compensation for the purchase of stock, subject to a $25,000 annual limit. Employees are required to hold their shares for a minimum of six months from the date of purchase. At October 31, 2024, there were 274,465 remaining unissued shares under the 2004 Employee Stock Purchase Plan. Compensation Expense by Type of Award and Related Income Tax Benefit
| Years Ended October 31,
(in millions) | 2024 |  | 2023 |  | 2022
RSUs | $ | 19.9 |  |  | $ | 17.7 |  |  | $ | 18.5 |
Performance shares | 10.1 |  |  | 12.7 |  |  | 12.0 |
Share-based compensation expense before income taxes | 30.0 |  |  | 30.5 |  |  | 30.5 |
Income tax benefit | (8.4) |  |  | (8.6) |  |  | (8.6) |
Share-based compensation expense, net of taxes | $ | 21.6 |  |  | $ | 21.8 |  |  | $ | 21.9 |
RSUs and Dividend Equivalent Rights We award RSUs to eligible employees and non-employee members of our Board of Directors (each, a “Grantee”) that entitle the Grantee to receive shares of our common stock as the units vest. RSUs granted to eligible employees after 2020 generally vest ratably over three years. RSUs granted to eligible employees prior to 2020 generally vest with respect to 50% of the underlying award on the second and fourth anniversary of the award. Upon the retirement of certain executive employees at age 60 with a minimum of 10 years of service to the Company, pursuant to the terms of their respective employment agreements, RSUs granted to such executive employees that were granted at least one year prior to termination by reason of retirement will continue to be eligible for vesting, exercise, and settlement, as applicable, on the originally scheduled vesting date. RSUs granted to non-employee directors vest on the first anniversary date of the grant date. In general, the receipt of RSUs is subject to the grantee’s continuing employment or service as a non-employee director. RSUs are credited with dividend equivalent rights that are converted to RSUs at the fair market value of our common stock on the dates the dividend payments are made and are subject to the same terms and conditions as the underlying award. RSU Activity
| Number of Shares (in millions) |  | Weighted-Average Grant Date Fair Value per Share
Outstanding at October 31, 2023 | 1.0 |  |  | $ | 41.09 |
Granted | 0.8 |  |  | 41.32 |
Vested (including 0.1 shares withheld for income taxes) | (0.4) |  |  | 42.09 |
Forfeited | (0.1) |  |  | 42.40 |
Outstanding at October 31, 2024 | 1.2 |  |  | $ | 40.82 |
At October 31, 2024, total unrecognized compensation cost, net of estimated forfeitures, related to RSUs was $25.7 million, which is expected to be recognized ratably over a weighted-average vesting period of 1.9 years. In 2024, 2023, and 2022, the weighted-average grant date fair value per share of awards granted was $41.32, $44.37, and $41.63, respectively. In 2024, 2023, and 2022, the total grant date fair value of RSUs vested and converted to shares of ABM common stock was $15.7 million, $17.1 million, and $16.4 million, respectively. Performance Shares, Including TSR Performance Shares Performance shares consist of a contingent right to receive shares of our common stock based on performance targets adopted by our Compensation Committee. Performance shares are credited with dividend equivalent rights that will be converted to performance shares at the fair market value of our common stock beginning after the performance targets have been satisfied and are subject to the same terms and conditions as the underlying award. For certain performance share awards, the number of performance shares that will vest is based on pre-established internal financial performance targets and typically a three-year service and performance period. The number of TSR-modified awards that will vest over the respective three-year performance period is based on our total shareholder return relative to the S&P 1500 Composite Commercial Services & Supplies Index. Vesting of 0% to 150% of the awards originally granted may occur depending on the respective performance metrics. Performance Share Activity
| Number of Shares (in millions) |  | Weighted-Average Grant Date Fair Value per Share
Outstanding at October 31, 2023 | 0.9 |  |  | $ | 44.43 |
Granted | 0.4 |  |  | 41.62 |
Vested (including 0.1 shares withheld for income taxes) | (0.3) |  |  | 40.35 |
Performance adjustments | (0.1) |  |  | 48.36 |
Forfeited | (0.1) |  |  | 44.20 |
Outstanding at October 31, 2024 | 0.9 |  |  | $ | 44.06 |
At October 31, 2024, total unrecognized compensation cost related to performance share awards was $17.0 million, which is expected to be recognized ratably over a weighted-average vesting period of 1.9 years. Except for TSR performance shares, these costs are based on estimated achievement of performance targets and estimated costs are periodically reevaluated. For our TSR performance shares, these costs are based on the fair value of awards at the grant date and are recognized on a straight-line basis over the service period of three years. In 2024, 2023, and 2022, the weighted-average grant date fair value per share of awards granted was $41.62, $46.47, and $43.06, respectively. In 2024, 2023, and 2022, the total grant date fair value of performance shares vested and converted to shares of ABM common stock was $12.3 million, $14.6 million, and $13.6 million, respectively. In 2024, 2023, and 2022, we used the Monte Carlo simulation valuation technique to estimate the fair value of TSR performance share grants, which used the assumptions in the table below. Monte Carlo Assumptions
| 2024 |  | 2023 |  | 2022
Expected life(1) | 2.81 years |  | 2.81 years |  | 2.81 years
Expected stock price volatility(2) | 33.0 | % |  | 39.9 | % |  | 41.8 | %
Risk-free interest rate(3) | 4.1 | % |  | 4.0 | % |  | 1.1 | %
Stock price(4) | $ | 42.13 |  |  | $ | 46.19 |  |  | $ | 42.88 |
(1) The expected life represents the remaining performance period of the awards. (2) The expected volatility for each grant is determined based on the historical volatility of our common stock over a period equal to the remaining term of the performance period from the date of grant for all awards. (3) The risk-free interest rate is based on the continuous compounded yield on U.S. Treasury Constant Maturity Rates with varying remaining terms; the yield is determined over a time period commensurate with the performance period from the grant date. (4) The stock price is the closing price of our common stock on the valuation date. Employee Stock Purchase Plan
| Years Ended October 31,
(in millions, except per share amounts) | 2024 |  | 2023 |  | 2022
Weighted-average fair value of granted purchase rights per share | $ | 2.31 |  |  | $ | 2.23 |  |  | $ | 2.19 |
Common stock issued | 0.1 |  |  | 0.1 |  |  | 0.1 |
Fair value of common stock issued per share | $ | 43.93 |  |  | $ | 42.40 |  |  | $ | 41.68 |
Aggregate purchases | $ | 3.7 |  |  | $ | 3.4 |  |  | $ | 3.4 |

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration