Business Segments

12 Months Ended

Sep. 28, 2012

Segment Reporting [Abstract]

Business Segments

NOTE 14. BUSINESS SEGMENTS:

The Company provides or manages services in two strategic areas: Food and Support Services and Uniform and Career Apparel, which are organized and managed in the following reportable business segments:

Food and Support Services—North America—Food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, entertainment, recreational and other facilities serving the general public in the United States, Canada and Mexico. Food and Support Services—North America operating income for fiscal2012 includes transition and integration costs of $4.9 million related to the Filterfresh acquisition, a favorable risk insurance adjustment of $1.7 million related to favorable claims experience and other income recognized of $6.7 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 fiscal2011 includes other income recognized of $7.8 million related to a compensation agreement signed with the NPS under which the NPS agreed to pay down a portion of the Company’s investment (possessory interest) in certain assets at one of the Company’s NPS sites in the Sports & Entertainment sector, severance related expenses of $6.2 million and a favorable risk insurance adjustment of $0.9 million related to favorable claims experience.

Food and Support Services—International—Food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, entertainment, recreational and other facilities serving the general public. Operations are conducted in 19 countries, including the U.K., Germany, Chile, Ireland, Spain, China, Belgium, Korea, Argentina and Japan. Food and Support Services—International operating income for fiscal2012 includes a favorable adjustment of $1.5 million related to a non-income tax settlement in the U.K. and $2.9 million of severance related expenses. Food and Support Services—International operating income for fiscal2011 includes a gain of $7.7 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 (see Note 4), a gain on the sale of land in Chile of $1.7 million and severance related expenses of $11.4 million. Food and Support Services—International operating income for fiscal2010 includes a favorable non-income tax settlement in the U.K. of $3.2 million.

Uniform and Career Apparel—Rental, sale, cleaning, maintenance and delivery of personalized uniform and career apparel and other textile items on a contract basis and direct marketing of personalized uniforms and career apparel and accessories to businesses, public institutions and individuals. Also provided are walk-off mats, cleaning cloths, disposable towels and other environmental control items. Uniform and Career Apparel operating income for the fiscal2012 includes a favorable risk insurance adjustment of $5.7 million related to favorable claims experience and severance related expenses of $2.6 million. Uniform and Career Apparel operating income for fiscal2011 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 $3.9 million.

Sales by segment are substantially comprised of services to unaffiliated customers and clients. Operating income reflects expenses directly related to individual segments plus an allocation of corporate expenses applicable to more than one segment.

Corporate—Corporate includes general corporate expenses not specifically allocated to an individual segment and share-based compensation expense (see Note 10). During fiscal2011, the Company recorded severance related expenses of $1.3 million. During fiscal2010, the Company recorded share-based compensation expense of $21.3 million, which included approximately $5.5 million for the 2010 modification of the portion of the Performance-Based Options whose vesting was subject to the achievement of the Company’s fiscal 2009 EBIT target.

Interest and Other Financing Costs, net, for fiscal2012 was impacted by the maturity of interest rate swaps during fiscal 2012 (see Note 6) and includes $11.1 million of third-party costs related to the amendment of the senior secured credit agreement (see Note 5) and the amendment of the Company's Canadian subsidiary cross currency swap (see Note 6). Interest and Other Financing Costs, net, for fiscal2011 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 and interest income of $14.1 million related to favorable non-income tax settlements in the U.K. For fiscal2010, Interest and Other Financing Costs, net, includes $8.5 million of third-party costs related to the amendment of the senior secured credit agreement that extended the maturity date of $1,407.4 million of outstanding U.S. denominated term loan and interest income of approximately $4.3 million related to favorable non-income tax settlements in the U.K.

Financial information by segment follows (in millions):

	Sales
	Fiscal Year Ended		Fiscal Year Ended		Fiscal Year Ended
	September 28, 2012		September 30, 2011		October 1, 2010
Food and Support Services—North America	$	9,413.2	$	9,019.0	$	8,654.7
Food and Support Services—International	2,729.5		2,723.3		2,437.7
Uniform and Career Apparel	1,362.7		1,340.1		1,326.7
	$	13,505.4	$	13,082.4	$	12,419.1

	Operating Income
	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 28, 2012			September 30, 2011			October 1, 2010
Food and Support Services—North America	$	425.6		$	400.5		$	350.6
Food and Support Services—International	89.9			79.9			75.3
Uniform and Career Apparel	118.1			117.3			102.7
	633.6			597.7			528.6
Corporate	(51.4		)	(49.5		)	(51.1		)
Operating Income	582.2			548.2			477.5
Interest and other financing costs, net	(401.7		)	(426.3		)	(444.5		)
Income from Continuing Operations Before Income Taxes	$	180.5		$	121.9		$	33.0

	Depreciation and Amortization
	Fiscal Year Ended		Fiscal Year Ended		Fiscal Year Ended
	September 28, 2012		September 30, 2011		October 1, 2010
Food and Support Services—North America	$	364.7	$	341.9	$	334.3
Food and Support Services—International	61.0		62.6		60.2
Uniform and Career Apparel	102.6		105.1		107.5
Corporate	0.9		0.9		0.9
	$	529.2	$	510.5	$	502.9

	Capital Expenditures and Client Contract Investments and Other*
	Fiscal Year Ended		Fiscal Year Ended		Fiscal Year Ended
	September 28, 2012		September 30, 2011		October 1, 2010
Food and Support Services—North America	$	281.0	$	207.9	$	212.8
Food and Support Services—International	51.9		58.6		46.8
Uniform and Career Apparel	40.5		33.3		33.3
Corporate	—		0.4		—
	$	373.4	$	300.2	$	292.9

* Includes amounts acquired in business combinations

	Identifiable Assets
	September 28, 2012		September 30, 2011
Food and Support Services—North America	$	7,120.8	$	7,234.2
Food and Support Services—International	1,527.7		1,524.8
Uniform and Career Apparel	1,681.7		1,672.8
Corporate	146.1		77.8
	$	10,476.3	$	10,509.6

The following geographic data include sales generated by subsidiaries within that geographic area and net property & equipment based on physical location (in millions):

	Sales
	Fiscal Year Ended		Fiscal Year Ended		Fiscal Year Ended
	September 28, 2012		September 30, 2011		October 1, 2010
United States	$	9,729.6	$	9,369.6	$	9,078.2
Foreign	3,775.8		3,712.8		3,340.9
	$	13,505.4	$	13,082.4	$	12,419.1

	Net Property & Equipment
	September 28, 2012		September 30, 2011
United States	$	814.4	$	818.4
Foreign	186.2		186.3
	$	1,000.6	$	1,004.7