Business Segments

6 Months Ended

Mar. 29, 2013

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS:

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

	Three Months Ended		Three Months Ended
Sales	March 29, 2013		March 30, 2012
Food and Support Services—North America	$	2,354,315	$	2,336,609
Food and Support Services—International	702,154		671,679
Uniform and Career Apparel	347,268		337,272
	$	3,403,737	$	3,345,560

	Three Months Ended			Three Months Ended
Operating Income (Loss)	March 29, 2013			March 30, 2012
Food and Support Services—North America	$	84,238		$	101,074
Food and Support Services—International	(10,027		)	22,289
Uniform and Career Apparel	23,277			23,543
	97,488			146,906
Corporate	(17,593		)	(13,192		)
Operating Income	79,895			133,714
Interest and other financing costs, net	(109,993		)	(118,533		)
Income (Loss) Before Income Taxes	$	(30,098	)	$	15,181

	Six Months Ended		Six Months Ended
Sales	March 29, 2013		March 30, 2012
Food and Support Services—North America	$	4,811,899	$	4,733,857
Food and Support Services—International	1,427,051		1,356,518
Uniform and Career Apparel	700,702		677,797
	$	6,939,652	$	6,768,172

	Six Months Ended			Six Months Ended
Operating Income	March 29, 2013			March 30, 2012
Food and Support Services—North America	$	225,789		$	227,319
Food and Support Services—International	9,183			42,843
Uniform and Career Apparel	54,373			56,585
	289,345			326,747
Corporate	(33,040		)	(26,157		)
Operating Income	256,305			300,590
Interest and other financing costs, net	(209,447		)	(227,347		)
Income from Continuing Operations Before Income Taxes	$	46,858		$	73,243

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 sales and operating income for the six months ended March 29, 2013 were negatively affected by Hurricane Sandy and the National Hockey League lockout. Food and Support Services—North America operating income for the three and six months ended March 29, 2013 includes $27.1 million of severance and related costs and $6.8 million of asset write-offs (see Note 4) and other income recognized of approximately $14.0 million relating to the recovery of the Company's investment (possessory interest) at one of the National Park Service ("NPS") sites in the Sports & Entertainment sector, which was terminated in the current year. Food and Support Services—North America operating income for the six months ended March 30, 2012 includes 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—International operating income for the three and six months ended March 29, 2013 includes $12.8 million of severance and related costs and $16.3 million of goodwill impairment charges and other asset write-offs (see Note 4).

Uniform and Career Apparel operating income for the three months ended March 29, 2013 includes a net charge of approximately $4.7 million related to a multiemployer pension withdrawal and a preliminary settlement of wage and hour claims, net of a favorable risk insurance adjustment. Uniform and Career Apparel operating income for the six months ended March 29, 2013 includes severance related expenses of $3.7 million and a net charge of approximately $3.0 million related to a multiemployer pension withdrawal and a wage and hour settlement, net of a favorable risk insurance adjustment. Uniform and Career Apparel operating income for the six months ended March 30, 2012 includes a favorable risk insurance adjustment of $5.7 million related to favorable claims experience and severance related expenses of $4.0 million.

Corporate expenses include share-based compensation expense (see Note 9). Corporate expenses for the three and six months ended March 29, 2013 includes $0.9 million of severance and related costs (see Note 4).

Interest and Other Financing Costs, net, for the three and six month periods of fiscal 2013 were favorably impacted by the maturity of interest rate swaps during fiscal 2012. Interest and Other Financing Costs, net, for the three and six months ended March 29, 2013 includes charges of $20.5 million in connection with the tender offer and Satisfaction and Discharge (see Note 6), consisting of $3.5 million of third party costs for the tender offer premium and $17.0 million of non-cash charges for the write-off of deferred financing costs. Interest and Other Financing Costs, net, for the six month period of fiscal 2013 also includes approximately $11.6 million of third-party costs incurred related to Amendment Agreement No. 3 to the senior secured credit agreement (see Note 6) and approximately $3.2 million of hedge ineffectiveness related to the repayment of the Canadian subsidiary's term loan with a maturity date of January 26, 2014 (see Note 7). Interest and Other Financing Costs, net, for the three and six month periods of fiscal 2012 includes $10.5 million of third-party costs related to Amendment Agreement No. 2 (see Note 6) and the amendment of the Company's Canadian subsidiary cross currency swap (see Note 7).