What changed in this filing

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Item 1. Business

2021-12-22 compared with 2020-12-17 · 65 added, 28 removed, 117 unchanged (44% of the section changed)

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In 1994, we changed our name to ABM Industries Incorporated.

Over the past thirteen years, we have grown into a multi-segment facility solutions company, primarily through strategic acquisitions and new service offerings, increasing our revenue from $3 billion to more than $6 billion.

The acquisition of OneSource in 2007 bolstered ABM as a leader in the janitorial market, while the Linc Group acquisition in 2010 established ABM as a “facility solutions” company with new service offerings, including lighting, mechanical, and electrical “technical solutions.” With demand increasing for industry-specific service providers, in 2012 we purchased Air Serv and established our first industry group, “aviation.” In recent years, we have strategically acquired companies in the United Kingdom, particularly with the GBM and Westway acquisitions, which expanded our janitorial and technical solutions businesses overseas.

In 2017, we acquired GCA Services Group (“GCA”), a provider of integrated facility services to educational institutions and commercial facilities, for approximately $1.3 billion, the largest acquisition in ABM history.

As a result of this acquisition, we are now a leading facility solutions provider in the education market.

In recent years, we also evaluated all of our service offerings and sold our Security and Government Services businesses, which did not align with our long-term focus on industry groups.

Additionally, in 2015 we began a comprehensive transformational initiative (“ 2020 Vision ”) to drive long-term, profitable growth through an industry-based go-to-market approach.

Since that time, we have grown into a multi-segment facility solutions company, primarily through strategic acquisitions and new service offerings, increasing our revenue from $3 billion to more than $6 billion.

The acquisition of OneSource in 2007 bolstered ABM as a leader in the janitorial market, while the Linc Group acquisition in 2010 established ABM as a “facility solutions” company with new service offerings, including lighting, mechanical, and electrical “technical solutions.” With demand increasing for industry-specific service providers, in 2012 we purchased Air Serv and established our first industry group, “aviation.” In recent years, we have strategically acquired companies in the United Kingdom (“U.K.”), particularly with the GBM and Westway acquisitions, which expanded our janitorial and technical solutions businesses overseas.

In 2015, we began a comprehensive transformational initiative (“ 2020 Vision ”) to drive long-term, profitable growth through an industry-based, go-to-market approach.

As part of this initiative, we centralized key functional areas, strengthened our sales capabilities, and initiated investments in service delivery tools and processes to help support standard operating practices that we believe are foundational to our long-term success.

As part of the transformation initiative, we also evaluated all of our service offerings and sold our Security and Government Services businesses, which did not align with our long-term focus on industry groups.

The acquisition accelerated the Company’s position as a leading facility solutions provider in the education market.

In 2021, we acquired Crown Building Maintenance Co.

and Crown Energy Services, Inc.

(collectively, “Able”), a leading facilities services company headquartered in San Francisco, California, with the goal to provide additional scaling to the Company’s core businesses and key geographies and bolstering ABM’s janitorial and facilities services service lines.

In addition, the acquisition of Able (“the Able Acquisition”) further expands ABM’s sustainability and energy efficiency offerings amid growing demand for environmentally responsible solutions.

As a result of these strategic changes, we have strengthened our ability to offer Janitorial, Parking, Facilities Services, Building & Energy Solutions, and Airline Services, on a standalone basis or in combination, and positioned ourselves as a leading integrated facilities management company.

Unless otherwise indicated, all references to years are to our fiscal year, which ends on October 31.

Forward-Looking Strategic Plan

Leveraging the various accomplishments achieved through 2020 Vision , the Company is embarking on the next step of our journey with a multi-year strategic plan called ELEVATE .

Our new strategy is designed to strengthen our industry leadership position through end-market repositioning and build on our core services, which we expect will drive significant long-term value for our stakeholders.

Over the next four years, we plan to make significant investments totaling $150 - $175 million and implement various measures with the aim to ELEVATE :

• the client experience, by serving as a trusted advisor who can provide innovative multiservice solutions and consistent service delivery;

• the team member experience, by investing in workforce management, training, developing the next generation of ABM leaders, and building on our inclusive culture;

• our use of technology and data to power client and employee experiences with cutting-edge data and analytics, processes, and tools that will fundamentally change how we operate our business.

Contract Types

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Our current reportable segments consist of Business & Industry (“B&I”), Technology & Manufacturing (“T&M”), Education, Aviation, and Technical Solutions.

The newly acquired Able is integrated within our B&I reportable segment.

For segment and geographic financial information, see Note 17, “Segment and Geographic Information,” in the Notes to consolidated financial statements.

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Corporate Responsibility and Sustainability

As a company with more than 110 years’ experience, we understand the need to embed corporate responsibility into our business practices to create value and support the long-term success of our business, shareholders, employees, and clients.

Our strategy has evolved over the years to align with our stakeholders’ expectations regarding environmental, social, and governance policies.

Recently, we have established three strategic axes of our sustainability strategy based on the topics that are most material to our business:

doing business in a responsible way, ensuring our employees’ well-being, and managing our environmental footprint.

Since 2011, we have voluntarily published a Sustainability Report on an annual basis in alignment with the Global Reporting Initiative framework to address our business, our employees, and the environment.

More information can be found in the corporate sustainability section of our corporate website.

As a company with more than 110 years of history and experience, we understand the need to embed and integrate corporate responsibility into and within our business practices and commit to sustainable operations to create value and support the long-term success of our business, shareholders, employees, and clients.

Our strategy has evolved over the years to align with our stakeholders’ expectations regarding environmental, social, and governance (“ESG”) policies.

We have established three strategic axes of our sustainability strategy based on the topics that are critical to our business:

doing business in a responsible way to ensure compliance with ethical business practices and bring sustainable services to the market;

ensuring the well-being and professional development of our employees;

and managing our carbon footprint to grow environmentally friendly practices.

Our Board of Directors and its Stakeholder and Enterprise Risk Committee are responsible for the Company’s activities and practices relating to social, environmental, and public policy matters.

Additionally, our internal sustainability team works in cross functional collaboration with departments throughout and across the enterprise to advance our sustainability and ESG strategies.

Since 2011, we have voluntarily published a Sustainability Report on an annual basis in alignment with the Global Reporting Initiative framework and the Sustainability Accounting Standards Board to address our business,

our employees, and the environment.

More information about our sustainability performance, progress, and goals can be found in the corporate sustainability section of our corporate website.

Human Capital

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As of October 31, 2021, we employed approximately 124,000 employees, of whom approximately 44,000, or 35%, were subject to various local collective bargaining agreements.

As of October 31, 2020, our front line employees represented 95% of our total workforce, while staff and management employees represented the other 5%.

As of October 31, 2021, our frontline employees represented 93% of our total workforce, while staff and management employees represented the other 7%.

Our human capital strategy is grounded by our values and our employees;

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Our Code of Business Conduct serves as a critical tool to help all of us recognize and report unethical conduct, while preserving and nurturing our culture of honesty and accountability.

We provide a comprehensive training and certification program on our Code of Business Conduct for our Board of Directors and all of our staff and management employees annually.

We provide a comprehensive annual training and certification program on our Code of Business Conduct for our Board of Directors and all of our staff and management employees.

Human resources, hiring, and training

Over the past few years, we have made investments to our human resources (“HR”) organization and structure that centralized and standardized hiring and training practices, including upgrades to our cloud-based human capital management system.

We have also introduced new tools to help our operators manage labor more efficiently, and we continue to invest in attracting, developing, and retaining talent.

With a team of approximately 124,000 employees across the United States, United Kingdom, and other locations, we continue to make investments in our human resources (“HR”) organization and structure toward centralized and standardized hiring and training practices, including incorporating modeling and advanced analytics in our HR processes to drive improvement in the retention and engagement of our frontline employees, who constitute the majority of our workforce.

In fiscal year 2021, we successfully piloted a frontline leadership training program, which we plan to formally launch enterprise-wide.

Through this program, we are aiming to develop the management and coaching skills of frontline supervisors to improve the employee experience, create an environment for career growth, and increase retention.

We also enhanced recruiting strategies to keep our client facilities staffed and improve our ability to hire in a more efficient manner.

Specifically, in fiscal year 2021, we introduced a rapid recruiting program that expands the reach of our talent acquisition efforts through new processes, strategic solutions, and targeted marketing efforts to better attract and retain talent.

Team Member Experience is one of the main pillars of our ELEVATE strategy.

We plan to make significant investments to attract, develop, and retain talent and to help our operators manage labor more efficiently, including the development of a new applicant tracking system and enhanced workforce management tools.

Our online training platform, ABM University, provides our staff and management employees with access to a multitude of training courses, videos, reference material, and other tools.

Outside of ABM University our front line employees receive on-the-job training to ensure we are executing for our clients.

Outside of ABM University our frontline employees receive on-the-job training to ensure we are executing for our clients.

Compensation and employee benefits

In addition to competitive wages and salaries, we provide all of our employees access to a variety of health and wellness benefits, including a 24/7 employee assistance program, as well as the addition of telemedicine benefits and a dedicated COVID-19 employee resource site in response to the Novel Coronavirus (“COVID-19”) Pandemic (the “Pandemic”).

Our comprehensive benefits offerings are designed to meet the needs of our employees.

Labor relations

With approximately 44,000 union-represented employees, we are party to more than 300 collective bargaining agreements nationwide, with more than 20 major labor unions.

Our collective bargaining agreements include regional multiemployer agreements covering thousands of employees as well as localized site agreements covering smaller groups.

Our collective bargaining agreements

include regional multiemployer agreements covering thousands of employees as well as localized site agreements covering smaller groups.

We strive to interact with our labor partners in an atmosphere of mutual respect, and we always seek to resolve any dispute in an equitable manner.

2 unchanged sentences

We have established a “safety-first” culture through various programs and initiatives including, but not limited to, incorporation into our daily shift protocols, training, and alignment with our corporate incentive plans.

Our safety programs for fiscal year 2020 helped produce the fifth consecutive year of claim frequency reductions.

Our safety programs for fiscal year 2021 helped produce claim frequency reductions.

A critical component of ABM’s commitment to fostering a professional and safe working environment for all of our employees is our zero tolerance for sexual and other unlawful harassment.

For example, in recent years, we have taken actions to further strengthen our safeguards against harassment, including expanding our robust anti-harassment trainings and policies.

We take any claim of unlawful harassment seriously and remain committed to providing a safe workplace for all.

Culture and inclusion

Grounded by our values and guided by our mission, we employ approximately 124,000 individuals from all backgrounds with the talent, experience, and compassion that enable us to best deliver for those we serve.

We cultivate a culture aimed at ensuring that our employees feel seen, heard, and valued.

Diversity, inclusion, equity, and belonging are core to this culture.

Inviting different perspectives and driving inclusion enables us to connect meaningfully, adapt, and innovate.

In 2020, we established the Company’s Culture and Inclusion Leadership Council, supported by our executive leadership team and guided by our employees.

This council is focused on how ABM successfully converts its values into measurable action.

In fiscal year 2021, through meetings of this council and employees surveys and with the assistance of third-party experts, the council identified four key focus areas, including:

training, data and analytics, internal engagement, and partnering with respected organizations dedicated to building a more equitable society.

Activities of the Culture and Inclusion Leadership Council are reported to the Board’s Stakeholder and Enterprise Risk Committee through management presentations on matters such as corporate culture, diversity, equity, and inclusion.

We are an Equal Opportunity and Affirmative Action employer in compliance with the requirements of the Executive Order 11246 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act.

We pride ourselves on our commitment to fostering a diverse, inclusive, and empowered workforce.

In 2020, we established the Company’s Culture and Inclusion Leadership Council, which seeks to obtain feedback from our employees and focuses on matters related to corporate culture at ABM, specifically related to diversity, inclusion, and social justice.

Available Information

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Vice President, Finance, Retail of Canadian Tire Corporation Limited from May 2014 to May 2016.

Block 52 Executive Vice President and Chief Human Resources Officer of ABM since June 2018;

Senior Vice President, Talent and Organizational Performance (Chief HR Officer) of Buffalo Wild Wings, Inc.

from April 2010 to June 2018;

Director of Human Resources of C.H.

Robinson Worldwide, Inc.

from December 2002 to April 2010.

Feinberg 47 Executive Vice President, Chief Strategy and Transformation Officer of ABM since November 2019;

13 unchanged sentences

from March 2007 to February 2014.

Chin 52 Interim Chief Financial Officer of ABM from July 2020 to November 2020;

Raúl Valentin 58 Executive Vice President and Chief Human Resources Officer of ABM since September 2021;

Senior Vice President, Human Resources of ABM from February 2019 to August 2021;

Senior Vice President, Human Resources of Coty Inc.

from 2016 to 2018;

Vice President, Human Resources of Comcast Strategic & Business Development from 2015 to 2016;

Vice President, Talent Acquisition of Comcast from 2011 to 2015.

Chin 53 Treasurer of ABM since May 2021;

Senior Vice President, Chief Accounting Officer, and Corporate Controller of ABM since June 2010;

Interim Chief Financial Officer of ABM from July 2020 to November 2020;

Vice President and Assistant Controller of ABM from June 2008 to June 2010.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business