Company: ABM
Filing Date: 2025-03-28
Form Type: CORRESP
Source: 0000771497-25-000008
Chunk: 2

Company: ABM INDUSTRIES INC /DE/
Filing Date: 2025-03-28
Form: CORRESP
Chunk 2
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. It should also be noted that the Prior Year Adjustments for fiscal years 2023 and 2022 were favorable and resulted in insurance reserves reductions. Accordingly, the Company has consistently made Prior Year Adjustments to its self-insurance reserve balance, whether the adjustments were favorable or unfavorable.

◦ We believe the exclusion of these amounts is useful to shareholders as it provides additional insight into how management views the current operating results of the Company, rather than including positive or negative adjustments that related to the prior periods. These Prior Year Adjustments reflect developments of claims that could date back many years and are often influenced by unpredictable changes in regulatory, legal or medical trends that management has little ability to influence. As a result, these Prior Year Adjustments can also change in value significantly from period-to-period, including reversing positive or negative adjustments.

◦ The Company further believes the exclusion of any Prior Year Adjustment from net income (loss) is useful to shareholders by enabling them to better assess our operating performance in the context of current fiscal year recognized revenues and profitability.

| One Liberty Plaza, 7thFloor 
 New York, N.Y. 10006        
 Office: (212) 297-0200      
 Fax: (212) 297-0375         |

• The adjustment does not render the measure inconsistent with the underlying economics or ignore certain aspects of the economics:

◦ As discussed above, a Prior Year Adjustment does not exclude any insurance expense incurred during the Company’s current fiscal year. Thus, any known trends that have impacted a Prior Year Adjustment are reflected in our current year operating performance results.

Accordingly, we believe our Prior Year Adjustment to income from continuing operations for the year ended October 31, 2024 does not result in misleading information or an individually tailored accounting measure that violates the principles of Question 100.04 of the Non-GAAP Financial Measures and Disclosure Interpretations.

If you have any questions with respect to any of the information in this letter, please email me at earl.ellis@abm.com

Very truly yours,

/s/ Earl R. Ellis

Executive Vice President and

Chief Financial Officer