Business Segments

6 Months Ended

Mar. 30, 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	March 30, 2012		April 1, 2011
Food and Support Services—North America	$	2,336,609	$	2,212,307
Food and Support Services—International	671,679		677,280
Uniform and Career Apparel	337,272		330,673
	$	3,345,560	$	3,220,260

	Three Months Ended			Three Months Ended
Operating Income	March 30, 2012			April 1, 2011
Food and Support Services—North America	$	101,074		$	88,465
Food and Support Services—International	22,289			19,875
Uniform and Career Apparel	23,543			25,157
	146,906			133,497
Corporate	(13,192		)	(11,229		)
Operating Income	133,714			122,268
Interest and other financing costs, net	(118,533		)	(92,765		)
Income from Continuing Operations Before Income Taxes	$	15,181		$	29,503

	Six Months Ended		Six Months Ended
Sales	March 30, 2012		April 1, 2011
Food and Support Services—North America	$	4,733,857	$	4,480,343
Food and Support Services—International	1,356,518		1,349,716
Uniform and Career Apparel	677,797		674,707
	$	6,768,172	$	6,504,766

	Six Months Ended			Six Months Ended
Operating Income	March 30, 2012			April 1, 2011
Food and Support Services—North America	$	227,319		$	216,836
Food and Support Services—International	42,843			32,455
Uniform and Career Apparel	56,585			59,686
	326,747			308,977
Corporate	(26,157		)	(22,867		)
Operating Income	300,590			286,110
Interest and other financing costs, net	(227,347		)	(201,911		)
Income from Continuing Operations Before Income Taxes	$	73,243		$	84,199

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 six months ended March 30, 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 six months ended April 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 $2.6 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 three and six months ended March 30, 2012 includes a favorable adjustment of $1.5 million related to a non-income tax settlement in the U.K. in both periods and $0.4 million and $1.7 million of severance related expenses, respectively. Food and Support Services—International operating income for the three and six months ended April 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) in both periods, favorable non-income tax settlements in the U.K. of $5.3 million in both periods, a goodwill and other intangible assets impairment charge of $5.3 million related to our India operations in both periods and severance related expenses of $2.9 million and $9.7 million, respectively.

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. Uniform and Career Apparel operating income for the three and six months ended April 1, 2011 includes a gain of $2.6 million related to a property settlement of an eminent domain claim. Uniform and Career Apparel operating income for the six months ended April 1, 2011 also includes 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 six months ended April 1, 2011 include severance related expenses of $1.0 million.

Interest and Other Financing Costs, net, for the three and six months of fiscal 2012 includes $10.5 million in both periods of third-party costs related to the amendment of the senior secured credit agreement that extended the maturity date of $1,231.6 million of the Company's outstanding term loans (see Note 7) and the amendment of the Company's Canadian subsidiary cross currency swap. Interest and Other Financing Costs, net, for the three and six month periods of fiscal 2011 includes interest income of approximately $14.1 million in both periods related to favorable non-income tax settlements in the U.K.