Business Segments

9 Months Ended

Jun. 29, 2012

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS:

Sales and operating income by reportable segment follow (in thousands):

	Three Months Ended		Three Months Ended
Sales	June 29, 2012		July 1, 2011
Food and Support Services—North America	$	2,319,566	$	2,253,908
Food and Support Services—International	673,907		697,966
Uniform and Career Apparel	342,621		333,839
	$	3,336,094	$	3,285,713

	Three Months Ended			Three Months Ended
Operating Income	June 29, 2012			July 1, 2011
Food and Support Services—North America	$	74,110		$	69,153
Food and Support Services—International	22,979			22,841
Uniform and Career Apparel	30,386			30,437
	127,475			122,431
Corporate	(12,186		)	(12,637		)
Operating Income	115,289			109,794
Interest and other financing costs, net	(87,807		)	(113,262		)
Income (Loss) from Continuing Operations Before Income Taxes	$	27,482		$	(3,468	)

	Nine Months Ended		Nine Months Ended
Sales	June 29, 2012		July 1, 2011
Food and Support Services—North America	$	7,053,423	$	6,734,251
Food and Support Services—International	2,030,425		2,047,682
Uniform and Career Apparel	1,020,418		1,008,546
	$	10,104,266	$	9,790,479

	Nine Months Ended			Nine Months Ended
Operating Income	June 29, 2012			July 1, 2011
Food and Support Services—North America	$	301,429		$	285,989
Food and Support Services—International	65,822			55,296
Uniform and Career Apparel	86,971			90,123
	454,222			431,408
Corporate	(38,343		)	(35,504		)
Operating Income	415,879			395,904
Interest and other financing costs, net	(315,154		)	(315,173		)
Income from Continuing Operations Before Income Taxes	$	100,725		$	80,731

In the first and second fiscal quarters, within the Food and Support Services—North America segment, historically there has been a lower level of activity at the sports, entertainment and recreational food service operations that is partly offset by increased activity in the educational operations. However, in the third and fourth fiscal quarters, historically there has been a significant increase at sports, entertainment and recreational accounts that is partially offset by the effect of summer recess on the educational accounts.

Food and Support Services—North America operating income for the nine months ended June 29, 2012 includes planned transition and integration costs of $4.3 million related to the Filterfresh acquisition and a favorable risk insurance adjustment of $1.7 million related to favorable claims experience. Food and Support Services—North America operating income for the nine months ended July 1, 2011 includes other income recognized of $7.8 million related to a compensation agreement signed with the National Park Service (NPS) under which the NPS agreed to pay down a portion of our investment (possessory interest) in certain assets at one of our NPS sites in the Sports & Entertainment sector, severance related expenses of $3.2 million and a favorable risk insurance adjustment of $0.9 million related to favorable claims experience.

Food and Support Services—International operating income for the nine months ended June 29, 2012 includes a favorable adjustment of $1.5 million related to a non-income tax settlement in the U.K. and $2.1 million of severance related expenses. Food and Support Services—International operating income for the three months ended July 1, 2011 includes a gain on the sale of land in Chile of $1.7 million and severance related expenses of $1.7 million. Operating income for the nine months ended July 1, 2011 includes a gain of $6.4 million related to the divestiture of the Company’s 67% ownership interest in the security business of its Chilean subsidiary (see Note 3), favorable non-income tax settlements in the U.K. of $5.3 million, a goodwill and other intangible assets impairment charge of $5.3 million related to our India operations, a gain on the sale of land in Chile of $1.7 million and severance related expenses of $11.4 million, respectively.

Uniform and Career Apparel operating income for the nine months ended June 29, 2012 includes a favorable risk insurance adjustment of $5.7 million related to favorable claims experience and severance related expenses of $4.0 million. Uniform and Career Apparel operating income for the nine months ended July 1, 2011 includes a gain of $2.6 million related to a property settlement of an eminent domain claim, a risk insurance adjustment of $4.8 million related to favorable claims experience and severance related expenses of $1.3 million.

Corporate expenses include share-based compensation expense (see Note 10). Corporate expenses for the nine months ended July 1, 2011 include severance related expenses of $1.0 million.

Interest and Other Financing Costs, net, for the three and nine month periods of fiscal 2012 was impacted by the maturity of interest rate swaps during fiscal 2012 (see Note 8). Interest and Other Financing Costs, net, for the nine months ended June 29, 2012 includes $10.5 million of third-party costs related to the amendment of the senior secured credit agreement (see Note 7) and the amendment of the Company's Canadian subsidiary cross currency swap (see Note 8). For the nine months ended July 1, 2011, Interest and Other Financing Costs, net, also includes interest income of approximately $14.1 million related to favorable non-income tax settlements in the U.K. Interest and Other Financing Costs, net, for the three and nine month periods ended July 1, 2011 includes a write-off of deferred financing fees of $2.1 million related to the amendment that extended the U.S. dollar denominated portion of the revolving credit facility.