Company: ABM
Filing Date: 2025-06-06
Form Type: 10-Q
Source: 0000771497-25-000014
Chunk: 7

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-06-06
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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2.2 million accrual for a parking tax audit settlement related to 2012-2019.

Amortization of Intangible Assets

Amortization of intangible assets decreased by $1.7 million, or 6.1%, to $26.5 million during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024. This decrease was due to lower amortization of intangibles, primarily intangibles acquired as part of the Able Acquisition, partially offset by amortization of intangibles from the Quality Uptime Acquisition.

Interest Expense

Interest expense increased by $4.9 million to $46.8 million during the six months ended April 30, 2025, as compared to the six months ended April 30, 2024. The increase was driven by higher borrowings from our Amended Credit Facility to fund working capital requirements.

Income Taxes from Operations

Our effective tax rates on income from operations for the six months ended April 30, 2025, and April 30, 2024, were 25.6% and 24.0%, respectively, resulting in provisions for taxes of $29.5 million and $28.0 million, respectively.

Our effective tax rate for the six months ended April 30, 2025 benefited from discrete items, primarily from $4.2 million for return to provision adjustments related to our non-U. S. operations. Our effective tax rate for the six months ended April 30, 2024, benefited from discrete items, primarily from $2.4 million for uncertain tax positions, $2.2 million for share-based compensation, and $2.2 million for return to provision adjustments related to our non-U. S. operations.

Interest Rate Swaps

We had a loss of $6.5 million during the six months ended April 30, 2025, as compared to a loss of $5.7 million during the six months ended April 30, 2024, primarily due to underlying changes in the fair value of our interest rate swaps.

Foreign Currency Translation

We had a foreign currency translation gain of $6.7 million during the six months ended April 30, 2025, as compared to a foreign currency translation gain of $3.7 million during the six months ended April 30, 2024. This change was due to fluctuations in the exchange rate between the USD and the GBP. Future gains and