Business Segments

9 Months Ended

Jun. 28, 2013

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 28, 2013		June 29, 2012
Food and Support Services—North America	$	2,405,860	$	2,319,566
Food and Support Services—International	727,516		673,907
Uniform and Career Apparel	356,654		342,621
	$	3,490,030	$	3,336,094

	Three Months Ended			Three Months Ended
Operating Income	June 28, 2013			June 29, 2012
Food and Support Services—North America	$	73,146		$	74,110
Food and Support Services—International	28,694			22,979
Uniform and Career Apparel	35,388			30,386
	137,228			127,475
Corporate	(13,604		)	(12,186		)
Operating Income	123,624			115,289
Interest and other financing costs, net	(80,917		)	(87,807		)
Income Before Income Taxes	$	42,707		$	27,482

	Nine Months Ended		Nine Months Ended
Sales	June 28, 2013		June 29, 2012
Food and Support Services—North America	$	7,217,759	$	7,053,423
Food and Support Services—International	2,154,567		2,030,425
Uniform and Career Apparel	1,057,356		1,020,418
	$	10,429,682	$	10,104,266

	Nine Months Ended			Nine Months Ended
Operating Income	June 28, 2013			June 29, 2012
Food and Support Services—North America	$	298,935		$	301,429
Food and Support Services—International	37,877			65,822
Uniform and Career Apparel	89,761			86,971
	426,573			454,222
Corporate	(46,644		)	(38,343		)
Operating Income	379,929			415,879
Interest and other financing costs, net	(290,364		)	(315,154		)
Income from Continuing Operations Before Income Taxes	$	89,565		$	100,725

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 nine months ended June 28, 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 nine months ended June 28, 2013 includes $6.6 million and $33.7 million of severance and related costs, respectively. Food and Support Services—North America operating income for the nine months ended June 28, 2013 also includes $6.8 million of asset write-offs 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 nine months ended June 29, 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 nine months ended June 28, 2013 includes $12.8 million of severance and related costs and $16.3 million of goodwill impairment charges and other asset write-offs. 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.

Uniform and Career Apparel operating income for the nine months ended June 28, 2013 includes a net charge of approximately $3.5 million related to a multiemployer pension withdrawal and a preliminary settlement of wage and hour claims, net of a favorable risk insurance adjustment and severance related expenses of $3.7 million. 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.

Corporate expenses include share-based compensation expense (see Note 9). Corporate expenses for the nine months ended June 28, 2013 includes $0.9 million of severance and related costs.

Interest and Other Financing Costs, net, for the nine month period of fiscal 2013 was favorably impacted by the maturity of interest rate swaps during fiscal 2012. Interest and Other Financing Costs, net, for the nine months ended June 28, 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 nine 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 nine 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).