Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Aug. 14, 2014 | Dec. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'G&K SERVICES INC | ' | ' |
Entity Central Index Key | '0000039648 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--06-28 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1,266,860,670 |
Entity Common Stock, Shares Outstanding | ' | 19,913,535 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Revenues | ' | ' | ' |
Rental and direct sale revenue | $900,869 | $866,018 | $828,953 |
Operating Expenses | ' | ' | ' |
Cost of rental and direct sale revenue | 594,954 | 585,711 | 574,833 |
Pension withdrawal and associated expenses | 9,854 | 1,000 | 24,004 |
Selling and administrative | 199,946 | 195,302 | 187,410 |
Total operating expenses | 804,754 | 782,013 | 786,247 |
Income from Continuing Operations | 96,115 | 84,005 | 42,706 |
Interest expense | 6,320 | 4,853 | 6,048 |
Income from Continuing Operations before Income Taxes | 89,795 | 79,152 | 36,658 |
Provision for income taxes | 33,730 | 28,646 | 12,171 |
Net Income from Continuing Operations | 56,065 | 50,506 | 24,487 |
Net loss from discontinued operations, net of tax | -8,393 | -3,786 | -340 |
Net Income | $47,672 | $46,720 | $24,147 |
Basic earnings per common share, from continuing operations (in dollars per share) | $2.83 | $2.62 | $1.32 |
Basic earnings (loss) per common share, from discontinued operations (in dollars per share) | ($0.43) | ($0.20) | ($0.02) |
Basic Earnings per Common Share | $2.41 | $2.43 | $1.31 |
Diluted earnings per common share, from continuing operations (in dollars per share) | $2.78 | $2.58 | $1.31 |
Diluted earnings (loss) per common share, discontinued operations (in dollars per share) | ($0.42) | ($0.20) | ($0.02) |
Diluted Earnings per Common Share | $2.36 | $2.38 | $1.29 |
Weighted average number of shares outstanding, basic | 19,568 | 18,970 | 18,494 |
Weighted average number of shares outstanding, diluted | 19,941 | 19,292 | 18,731 |
Dividends Declared Per Share | $7.08 | $0.78 | $6.59 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Net income | $47,672 | $46,720 | $24,147 |
Other comprehensive income (loss) | ' | ' | ' |
Foreign currency translation adjustments, net of tax of $386, $(2,257) and $0, respectively | -1,411 | -6,459 | -7,175 |
Change in pension benefit liabilities recognized, net of tax of $(2,474), $7,297 and $(8,496), respectively | -4,098 | 12,109 | -13,582 |
Derivative financial instruments gain (loss) recognized, net of tax of $(138), $870 and $(302), respectively | -224 | 1,462 | -491 |
Derivative financial instruments loss reclassified, net of tax of $202, $227 and $674, respectively | 331 | 382 | 1,097 |
Total other comprehensive income (loss), net of tax | -5,402 | 7,494 | -20,151 |
Total comprehensive income | 42,270 | 54,214 | 3,996 |
Foreign currency adjustments, tax | 386 | -2,257 | 0 |
Pension benefit liability, tax | -2,474 | 7,297 | -8,496 |
Derivative financial instruments recognized, tax | -138 | 870 | -302 |
Derivative financial instruments reclassified, tax | $202 | $227 | $674 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $37,118 | $38,590 |
Accounts receivable, less allowance for doubtful accounts of $3,697 and $3,135 | 100,193 | 90,989 |
Inventories, net | 162,534 | 165,006 |
Other current assets | 27,250 | 13,810 |
Total current assets | 327,095 | 308,395 |
Property, Plant and Equipment | ' | ' |
Land | 33,105 | 33,195 |
Buildings and improvements | 167,300 | 165,621 |
Machinery and equipment | 361,408 | 340,258 |
Automobiles and trucks | 8,241 | 9,474 |
Less accumulated depreciation | -368,672 | -354,392 |
Total property, plant and equipment | 201,382 | 194,156 |
Other Assets | ' | ' |
Goodwill | 333,214 | 334,393 |
Customer contracts and non-competition agreements, net | 6,448 | 8,847 |
Other noncurrent assets | 55,380 | 51,495 |
Total other assets | 395,042 | 394,735 |
Total assets | 923,519 | 897,286 |
Current Liabilities | ' | ' |
Accounts payable | 44,600 | 41,655 |
Accrued expenses | ' | ' |
Compensation and employee benefits | 46,329 | 47,224 |
Other | 26,311 | 34,678 |
Deferred income taxes | 26,306 | 6,729 |
Current maturities of long-term debt | 792 | 18 |
Total current liabilities | 144,338 | 130,304 |
Long-Term Debt, net of Current Maturities | 266,230 | 175,000 |
Deferred Income Taxes | 17,214 | 19,894 |
Other Noncurrent Liabilities | 121,693 | 105,080 |
Total liabilities | 549,475 | 430,278 |
Commitments and Contingencies (Notes 13 and 14) | ' | ' |
Stockholders' Equity | ' | ' |
Common stock, $0.50 par value, non-convertible Class A, 400,000 shares authorized, 19,912 and 19,683 shares issued and outstanding | 9,956 | 9,842 |
Additional paid-in capital | 62,864 | 44,872 |
Retained earnings | 297,237 | 402,905 |
Accumulated other comprehensive income | 3,987 | 9,389 |
Total stockholders' equity | 374,044 | 467,008 |
Total liabilities and stockholders' equity | $923,519 | $897,286 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $3,697 | $3,135 |
Common stock, par value | $0.50 | $0.50 |
Class A Common Stock | ' | ' |
Common stock, authorized | 400,000 | 400,000 |
Common stock, issued | 19,912 | 19,683 |
Common stock shares outstanding (in shares) | 19,912 | 19,683 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Class A Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
In Thousands, unless otherwise specified | |||||
Beginning balance at Jul. 02, 2011 | $514,906 | $9,364 | $12,455 | $471,041 | $22,046 |
Balance, beginning of period (shares) at Jul. 02, 2011 | ' | 18,728 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Total Comprehensive income | 3,996 | ' | ' | 24,147 | -20,151 |
Issuance of common stock under stock plans (shares) | ' | 202 | ' | ' | ' |
Issuance of common stock under stock plans, net of income tax | 2,858 | 101 | 2,757 | ' | ' |
Equity based compensation | 6,037 | ' | 6,037 | ' | ' |
Share associated with tax withholdings under our employee equity incentive plan (shares) | ' | -30 | ' | ' | ' |
Shares associated with tax withholdings under our employee equity incentive plan | -817 | -15 | -802 | ' | ' |
Cash dividends | -123,921 | ' | ' | -123,921 | ' |
Ending balance at Jun. 30, 2012 | 403,059 | 9,450 | 20,447 | 371,267 | 1,895 |
Balance, ending period (shares) at Jun. 30, 2012 | ' | 18,900 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Total Comprehensive income | 54,214 | ' | ' | 46,720 | 7,494 |
Issuance of common stock under stock plans (shares) | ' | 807 | ' | ' | ' |
Issuance of common stock under stock plans, net of income tax | 20,401 | 404 | 19,997 | ' | ' |
Equity based compensation | 5,001 | ' | 5,001 | ' | ' |
Share associated with tax withholdings under our employee equity incentive plan (shares) | ' | -24 | ' | ' | ' |
Shares associated with tax withholdings under our employee equity incentive plan | -813 | -12 | -801 | ' | ' |
Tax benefit related to equity based compensation | ' | ' | 228 | ' | ' |
Cash dividends | -15,082 | ' | ' | -15,082 | ' |
Ending balance at Jun. 29, 2013 | 467,008 | 9,842 | 44,872 | 402,905 | 9,389 |
Balance, ending period (shares) at Jun. 29, 2013 | ' | 19,683 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Total Comprehensive income | 42,270 | ' | ' | 47,672 | -5,402 |
Issuance of common stock under stock plans (shares) | ' | 460 | ' | ' | ' |
Issuance of common stock under stock plans, net of income tax | 8,748 | 230 | 8,518 | ' | ' |
Equity based compensation | 6,318 | ' | 6,318 | ' | ' |
Share associated with tax withholdings under our employee equity incentive plan (shares) | ' | -26 | ' | ' | ' |
Shares associated with tax withholdings under our employee equity incentive plan | -1,435 | -13 | -1,422 | ' | ' |
Tax benefit related to equity based compensation | 4,578 | ' | 4,578 | ' | ' |
Cash dividends | -141,771 | ' | ' | -141,771 | ' |
Ending balance at Jun. 28, 2014 | $374,044 | $9,956 | $62,864 | $297,237 | $3,987 |
Balance, ending period (shares) at Jun. 28, 2014 | ' | 19,912 | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Cash dividends | $7.08 | $0.78 | $6.59 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Operating Activities: | ' | ' | ' |
Net income | $47,672 | $46,720 | $24,147 |
Adjustments to reconcile net income to net cash provided by operating activities - | ' | ' | ' |
Depreciation and amortization | 30,877 | 32,175 | 33,983 |
Loss on sale of businesses | 12,837 | 0 | 0 |
Pension withdrawal and associated expenses | 9,854 | 1,000 | 23,703 |
Deferred income taxes | 21,972 | 1,059 | 2,775 |
Share-based compensation | 6,318 | 5,001 | 6,037 |
Changes in current operating items, exclusive of acquisitions and divestitures - | ' | ' | ' |
Accounts receivable | -14,538 | 2,504 | -3,516 |
Inventories | -12,157 | 15,032 | -14,481 |
Accounts payable | 935 | 475 | 3,470 |
Other current assets and liabilities | -25,273 | 10,803 | 6,784 |
Other | -3,861 | -2,670 | -9,929 |
Net cash provided by operating activities | 74,636 | 112,099 | 72,973 |
Investing Activities: | ' | ' | ' |
Capital expenditures | -32,776 | -35,524 | -34,026 |
Divestiture (Acquisition) of businesses | 6,641 | -18,589 | -1,087 |
Net cash used for investing activities | -26,135 | -54,113 | -35,113 |
Financing Activities: | ' | ' | ' |
Repayments of long-term debt | -18 | -591 | -729 |
Proceeds from issuance of long-term debt | 0 | 100,000 | 0 |
Proceeds from (Repayments of) revolving credit facilities, net | 91,000 | -143,000 | 81,944 |
Cash dividends paid | -140,886 | -15,082 | -123,921 |
Net issuance of common stock, under stock option plans | 8,748 | 20,401 | 2,858 |
Repurchase of common stock | -11,672 | 0 | 0 |
Shares associated with tax withholdings under our equity incentive plans | 1,435 | 813 | 817 |
Excess tax benefit from share-based compensation | 4,578 | 1,068 | 0 |
Net cash used for financing activities | -49,685 | -38,017 | -40,665 |
Effect of Exchange Rates on Cash | -288 | -983 | -565 |
(Decrease) Increase in Cash and Cash Equivalents | -1,472 | 18,986 | -3,370 |
Cash and Cash Equivalents: | ' | ' | ' |
Beginning of year | 38,590 | 19,604 | 22,974 |
End of year | 37,118 | 38,590 | 19,604 |
Supplemental Cash Flow Information: | ' | ' | ' |
Cash paid for - Interest | 5,645 | 3,584 | 4,893 |
Cash paid for - Income taxes | 20,945 | 17,634 | 3,283 |
Capital expenditures included amounts in accounts payable | $3,378 | ' | ' |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ||||||||
Nature of Business | ||||||||
G&K Services, Inc., founded in 1902 and headquartered in Minnetonka, Minnesota, is a service-focused market leader of branded uniform and facility services programs. We deliver value to our customers by enhancing their image and brand, and by promoting workplace safety, security and cleanliness. We accomplish this by providing high quality branded work apparel programs, and a variety of facility products and services, including floor mats, towels, mops and restroom hygiene products. We also manufacture certain work apparel garments that are used to support our garment rental and direct purchase programs. We have two operating segments, United States (includes the Dominican Republic) and Canada, which have been identified as components of our organization that are reviewed by our Chief Executive Officer to determine resource allocation and evaluate performance. | ||||||||
Basis of Presentation | ||||||||
Our Consolidated Financial Statements include the accounts of G&K Services, Inc. and all subsidiaries in which we have a controlling financial interest. Intercompany transactions and accounts are eliminated in consolidation. | ||||||||
Our fiscal year ends on the Saturday nearest June 30. All references herein to "2014," "2013" and "2012" refer to the fiscal years ended June 28, 2014, June 29, 2013 and June 30, 2012, respectively. Fiscal years 2014, 2013 and 2012 consisted of 52 weeks. | ||||||||
Use of Estimates | ||||||||
The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts and disclosures reported therein. Due to the inherent uncertainty involved in making estimates, actual results could differ from our estimates. | ||||||||
Cash and Cash Equivalents | ||||||||
We consider all investments purchased with an original maturity of three months or less to be cash equivalents. | ||||||||
Accounts Receivable | ||||||||
Accounts receivable are recorded net of an allowance for expected losses. The allowance, recognized as an amount equal to anticipated future write-offs, is based on the age of outstanding balances, analysis of specific accounts, historical bad debt experience and current economic trends. We generally write-off uncollectible accounts receivable after all internal avenues of collection have been exhausted. | ||||||||
Inventories | ||||||||
Inventories consist of new goods and rental merchandise in service. New goods are stated at the lower of first-in, first-out (FIFO) cost or market. Merchandise placed in service to support our rental operations is amortized into cost of rental operations over the estimated useful lives of the underlying inventory items, on a straight-line basis, which results in a matching of the cost of the merchandise with the weekly rental revenue generated by the merchandise. Estimated lives of rental merchandise in service range from six months to four years. In establishing estimated lives for merchandise in service, management considers historical experience and the intended use of the merchandise. | ||||||||
We review the estimated useful lives of our in-service inventory assets on a periodic basis or when trends in our business indicate that the useful lives for certain products might have changed. The selection of estimated useful lives is a sensitive estimate in which a change in lives can have a material impact on our results of operations. For example, during the fourth quarter of fiscal year 2013, we completed an analysis of certain in-service inventory assets which resulted in the estimated useful lives for these assets being extended to better reflect the estimated periods in which the assets will remain in service. The effect of the change in estimate increased income from operations by $6,136, net income by $3,867 and basic and diluted earnings per common share by $0.19 in fiscal year 2014 and increased income from operations by $2,605, net income by $1,655 and basic and diluted earnings per common share by $0.09 in fiscal year 2013. In addition, this change resulted in an increase in merchandise in service on the balance sheet of $8,741 and $2,605 as of June 28, 2014 and June 29, 2013, respectively. | ||||||||
We estimate our losses related to inventory obsolescence by examining our inventory to determine if there are indicators that carrying values exceed the net realizable value. Significant factors that could indicate the need for inventory write-downs include the age of the inventory, anticipated demand for our products, historical inventory usage, revenue trends and current economic conditions. We believe that adequate adjustments have been made in the Consolidated Financial Statements; however, in the future, product lines and customer requirements may change, which could result in an increase in obsolete inventory reserves or additional inventory impairments. | ||||||||
The reduction in finished goods inventory is primarily related to the sale of our Direct Sale Program Business. See Note 10, "Discontinued Operations" of the Notes to the Consolidated Financial Statements for details regarding the sale. | ||||||||
The components of inventories as of June 28, 2014 and June 29, 2013 are as follows: | ||||||||
June 28, 2014 | June 29, 2013 | |||||||
Raw Materials | $ | 7,952 | $ | 11,583 | ||||
Work in Process | 1,279 | 1,846 | ||||||
Finished Goods | 29,192 | 44,156 | ||||||
New Inventories | 38,423 | 57,585 | ||||||
Merchandise In Service | 124,111 | 107,421 | ||||||
Total Inventories | $ | 162,534 | $ | 165,006 | ||||
Property, Plant and Equipment | ||||||||
Property, plant and equipment are carried at cost. Depreciation is generally computed using the straight-line method over the following estimated useful lives: | ||||||||
Life | ||||||||
(Years) | ||||||||
Automobiles and trucks | 3 to 8 | |||||||
Machinery and equipment | 3 to 10 | |||||||
Buildings | 20 to 33 | |||||||
Building improvements | 10 | |||||||
Costs of significant additions, renewals and betterments are capitalized. When an asset is sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the gain or loss on disposition is reflected in earnings. Repair and maintenance costs are charged to operating expense when incurred. Depreciation expense, which includes amortization of assets recorded under capital leases, was $28,220, $28,112 and $29,014, in fiscal years 2014, 2013 and 2012, respectively. | ||||||||
Environmental Costs | ||||||||
We accrue various environmental related costs, which consist primarily of estimated clean-up costs, fines and penalties, when it is probable that we have incurred a liability and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, we accrue the minimum estimated amount. This accrued amount reflects our assumptions regarding the nature of the remedy and the outcome of discussions with regulatory agencies. Changes in the estimates on which the accruals are based, including unanticipated government enforcement actions, or changes in environmental regulations, could result in higher or lower costs. Accordingly, as investigations and other actions proceed, it is likely that adjustments to our accruals will be necessary to reflect new information. While we cannot predict the ultimate outcome of any of these matters with certainty, we believe the possibility of a material adverse effect on our results of operations or financial position is remote. | ||||||||
Accruals for environmental liabilities are included in the "Accrued expenses - Other" line item in the Consolidated Balance Sheets. Environmental costs are capitalized if they extend the life of the related property, increase its capacity and/or mitigate or prevent future contamination. The cost of operating and maintaining environmental control equipment is charged to expense in the period incurred. | ||||||||
For additional information see Note 14, "Commitments and Contingencies" of the Notes to the Consolidated Financial Statements. | ||||||||
Goodwill, Intangible Assets and Other Long-Lived Assets | ||||||||
The fair value of the purchase price of acquisitions in excess of the fair value of the underlying net assets is recorded as goodwill. Non-competition agreements that limit the seller from competing with us for a fixed period of time and acquired customer contracts are stated at fair value less accumulated amortization and are amortized over the terms of the respective agreements or estimated average life of an account, which ranges from five to 20 years. | ||||||||
We test goodwill for impairment in the fourth quarter of each fiscal year or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. Reporting units for goodwill impairment review are operating segments, or components of an operating segment, that constitute a business for which discrete financial information is available, and for which segment management regularly reviews the operating results. Based on this analysis, we have identified two reporting units within our operating segments as of the fiscal year 2014 testing date. Our reporting units are U.S. Rental operations and Canadian Rental operations, with respective goodwill balances of $270,045 and $63,169, at June 28, 2014. During fiscal year 2014, we divested our Direct Sales reporting unit. There have been no other changes to our reporting units or in the allocation of goodwill to each respective reporting unit in fiscal years 2014, 2013 or 2012. | ||||||||
In fiscal year 2014, we performed a qualitative assessment to test our reporting units' goodwill for impairment. Based on our qualitative assessment, we determined that it is more likely than not (i.e. a likelihood of more than 50 percent) that the fair value of all reporting units is greater than their carrying amount and therefore no impairment of goodwill was identified. In fiscal 2013 and 2012, we used a market valuation approach to determine the fair value of each reporting unit for our annual impairment test. The results of this test indicated that the estimated fair value exceeded the carrying value of our goodwill by more than 50% for our U.S. Rental and Canadian Rental reporting units for both fiscal years and therefore no impairment existed. All goodwill associated with our Direct Sales reporting unit had been previously impaired and written off. During the second quarter of fiscal year 2014, we recorded an impairment loss related to the divestiture of our Ireland business of $261. | ||||||||
Long-lived assets, including definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During the fourth quarter of fiscal year 2013, we recorded an impairment loss related to customer contracts totaling $1,626. See Note 10, "Discontinued Operations" of the Notes to the Consolidated Financial Statements for details on the impairment. There were no impairment charges for intangible assets in fiscal years 2014 or 2012. | ||||||||
Retirement Plan Assets | ||||||||
Retirement plan assets consist of equity and fixed income investment funds, common stock and life insurance contracts, which are stated at fair value. For additional information see Note 13, "Employee Benefit Plans" of the Notes to the Consolidated Financial Statements. | ||||||||
Foreign Currency | ||||||||
For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated at the period-end exchange rates. Income statement accounts are translated using the average exchange rates prevailing during the year. Translation adjustments are reflected within "Accumulated other comprehensive income" in stockholders' equity. Gains and losses from foreign currency transactions are included in net earnings for the period and were not material in fiscal years 2014, 2013 or 2012. | ||||||||
Revenue Recognition | ||||||||
Our rental operations business is largely based on written service agreements whereby we agree to pick-up soiled merchandise, launder and then deliver clean uniforms and other related products. The service agreements generally provide for weekly billing upon completion of the laundering process and delivery to the customer. Accordingly, we recognize revenue from rental operations in the period in which the services are provided. Revenue from rental operations also includes billings to customers for lost or damaged uniforms and replacement fees for non-personalized merchandise that is lost or damaged. Direct sale revenue is recognized in the period in which the product is shipped. Total revenues do not include sales tax as we consider ourselves a pass-through conduit for collecting and remitting sales tax. | ||||||||
Insurance | ||||||||
We carry large deductible insurance policies for certain obligations related to health, workers' compensation, auto and general liability programs. These deductibles range from $350 to $750 per occurrence. Estimates are used in determining the potential liability associated with reported claims and for losses that have occurred, but have not been reported. Management estimates generally consider historical claims experience, escalating medical cost trends, expected timing of claim payments and actuarial analyses provided by third parties. Changes in the cost of medical care, our ability to settle claims and the present value estimates and judgments used by management could have a material impact on the amount and timing of expense for any period. | ||||||||
Income Taxes | ||||||||
Provisions for federal, state, and foreign income taxes are calculated based on reported pretax earnings and current tax law. Significant judgment is required in determining income tax provisions and evaluating tax positions. We periodically assess our liabilities and contingencies for all periods that are currently open to examination or have not been effectively settled based on the most current available information. If it is not more likely than not that our tax position will be sustained, we record our best estimate of the resulting tax liability and any applicable interest and penalties in the Consolidated Financial Statements. | ||||||||
Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using statutory rates in effect for the year in which the differences are expected to reverse. We present the tax effects of these deferred tax assets and liabilities separately for each major tax jurisdiction. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that the changes are enacted. We record valuation allowances to reduce deferred tax assets when it is more likely than not that some portion of the asset may not be realized. We evaluate our deferred tax assets and liabilities on a periodic basis. We believe that we have adequately provided for our future income tax obligations based upon current facts, circumstances and tax law. | ||||||||
Derivative Financial Instruments | ||||||||
In the ordinary course of business, we are exposed to market risks. We utilize derivative financial instruments to manage interest rate risk and manage the total debt that is subject to variable and fixed interest rates. These interest rate swap contracts modify our exposure to interest rate risk by converting variable rate debt to a fixed rate or by locking in the benchmark interest rate on forecasted issuances of fixed rate swap contracts as cash flow hedges of the interest related to variable and fixed rate debt. | ||||||||
All derivative financial instruments are recognized at fair value and are recorded in the "Other current assets" or "Accrued expenses - Other" line items in the Consolidated Balance Sheets. | ||||||||
For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value on the derivative financial instrument is reported as a component of "Accumulated other comprehensive income" and reclassified into the "Interest expense" line item in the Consolidated Statements of Operations in the same period as the expenses from the cash flows of the hedged items are recognized. Cash payments or receipts are included in "Net cash provided by operating activities" in the Consolidated Statements of Cash Flows in the same period as the cash is settled. We perform an assessment at the inception of the hedge and on a quarterly basis thereafter, to determine whether our derivatives are highly effective in offsetting changes in the value of the hedged items. Any change in the fair value resulting from hedge ineffectiveness is immediately recognized as income or expense. | ||||||||
We do not engage in speculative transactions or fair value hedging nor do we hold or issue derivative financial instruments for trading purposes. | ||||||||
Share-based Payments | ||||||||
We grant share-based awards, including restricted stock and options to purchase our common stock. Stock options are granted to employees and directors for a fixed number of shares with an exercise price equal to the fair value of the shares at the date of grant. Share-based compensation is recognized in the Consolidated Statements of Operations on a straight-line basis over the requisite service period. The amortization of share-based compensation reflects estimated forfeitures adjusted for actual forfeiture experience. As share-based compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from the exercise of stock options or release of restrictions on the restricted stock. At the time share-based awards are exercised, cancelled, expire or restrictions lapse, we recognize adjustments to additional paid-in capital or income tax expense. See Note 11, "Stockholders' Equity" of the Notes to the Consolidated Financial Statements for further details. | ||||||||
New Accounting Pronouncements | ||||||||
In February 2013, the FASB issued updated guidance to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present, either on the face of the consolidated statement of operations or in the notes, separately for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The updated guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. Our adoption of this guidance in the first quarter of fiscal 2014 resulted in a change in the presentation of the Notes to the Consolidated Financial Statements and did not have any effect on our results of operations or financial position. | ||||||||
In May 2014, the FASB issued updated guidance to clarify revenue recognition principles. This guidance is intended to improve disclosure requirements and enhance the comparability of revenue recognition practices. Improved disclosures under the amended guidance relate to the nature, amount, timing and uncertainty of revenue that is recognized from contracts with customers. This guidance will be effective for reporting periods beginning after December 15, 2016. We are currently evaluating the impact this new guidance will have on our Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 28, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
Acquisitions | |
In the second quarter of fiscal year 2013, we completed an acquisition in our rental operations business. The results of the acquired business have been included in our Consolidated Financial Statements since the date of acquisition. The acquisition extends our rental operations footprint into five of the top 100 North American markets which we did not previously serve. The fair value of the consideration transferred at the date of acquisition totaled $18,488 and consisted entirely of cash. | |
The proforma effects of this acquisition, had it been acquired at the beginning of fiscal year 2013, were not material. The amount of revenue related to the acquired business that has been included in our Consolidated Statements of Operations was approximately $10,000 for fiscal year 2014 and $5,831 for fiscal year 2013. The impact to net income was immaterial for all periods presented. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill and Intangible Assets | ' | |||||||||||
Goodwill and Intangible Assets | ||||||||||||
Goodwill by segment is as follows: | ||||||||||||
United States | Canada | Total | ||||||||||
Balance as of June 30, 2012 | $ | 259,361 | $ | 65,975 | $ | 325,336 | ||||||
Acquisitions | 10,994 | — | 10,994 | |||||||||
Foreign currency translation and other | (49 | ) | (1,888 | ) | (1,937 | ) | ||||||
Balance as of June 29, 2013 | $ | 270,306 | $ | 64,087 | $ | 334,393 | ||||||
Foreign currency translation and other | (261 | ) | (918 | ) | (1,179 | ) | ||||||
Balance as of June 28, 2014 | $ | 270,045 | $ | 63,169 | $ | 333,214 | ||||||
We recorded a goodwill impairment loss related to the divestiture of our Ireland business of $261 in the second quarter of fiscal year 2014. There were no other impairment losses recorded in fiscal year 2014 or fiscal year 2013. | ||||||||||||
Other intangible assets, which are included in "Other assets" on the Consolidated Balance Sheet, are as follows: | ||||||||||||
June 28, 2014 | June 29, 2013 | |||||||||||
Customer contracts and non-competition agreements | $ | 23,838 | $ | 125,996 | ||||||||
Accumulated amortization | (17,390 | ) | (117,149 | ) | ||||||||
Net | $ | 6,448 | $ | 8,847 | ||||||||
The customer contracts include the combined value of the written service agreements and the related customer relationship. Customer contracts are amortized over a weighted average life of approximately 11 years. | ||||||||||||
Amortization expense was $2,657, $4,063 and $4,968 for fiscal years 2014, 2013 and 2012, respectively. Estimated amortization expense for each of the next five fiscal years based on the intangible assets as of June 28, 2014 is as follows: | ||||||||||||
2015 | $ | 1,948 | ||||||||||
2016 | 1,393 | |||||||||||
2017 | 1,192 | |||||||||||
2018 | 410 | |||||||||||
2019 | 176 | |||||||||||
Thereafter | 1,329 | |||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ||||||||
Debt as of June 28, 2014 and June 29, 2013 includes the following: | ||||||||
2014 | 2013 | |||||||
Borrowings under $250M Revolver | $ | 65,925 | $ | — | ||||
Borrowings under $75M Variable Rate Notes | 75,000 | 75,000 | ||||||
Borrowings under $50M A/R Line | 25,075 | — | ||||||
Borrowings under $100M Fixed Rate Notes | 100,000 | 100,000 | ||||||
Capital leases and other | 1,022 | 18 | ||||||
267,022 | 175,018 | |||||||
Less current maturities | (792 | ) | (18 | ) | ||||
Total long-term debt | $ | 266,230 | $ | 175,000 | ||||
We have a $250,000, unsecured revolving credit facility ("$250M Revolver") with a syndicate of banks, which expires on March 7, 2017. Borrowings in U.S. dollars under this credit facility generally bear interest at the adjusted London Interbank Offered Rate ("LIBOR") for specified interest periods plus a margin, which can range from 1.00% to 2.00%, depending on our consolidated leverage ratio. | ||||||||
As of June 28, 2014, there was $65,925 outstanding under this facility. The unused portion of the revolver may be used for general corporate purposes, acquisitions, share repurchases, dividends, working capital needs and to provide up to $50,000 in letters of credit. As of June 28, 2014 letters of credit outstanding under this facility totaled $636 and primarily related to our property and casualty insurance programs. No amounts have been drawn upon these letters of credit. As of June 28, 2014 there is a fee of 0.20% of the unused daily balance of this facility. | ||||||||
Availability of credit under this facility requires that we maintain compliance with certain covenants. | ||||||||
The covenants under this agreement are the most restrictive when compared to our other credit facilities. The following table illustrates compliance with the material covenants required by the terms of this facility as of June 28, 2014: | ||||||||
Required | Actual | |||||||
Maximum Leverage Ratio (Debt/EBITDA) | 3.5 | 2.16 | ||||||
Minimum Interest Coverage Ratio (EBITDA/Interest Expense) | 3 | 21.45 | ||||||
Minimum Net Worth | $ | 360,285 | $ | 374,044 | ||||
Our maximum leverage ratio and minimum interest coverage ratio covenants are calculated by adding back certain non-cash charges, as defined in our debt agreement. | ||||||||
Borrowings outstanding as of June 28, 2014 under this facility bear interest at a weighted average effective rate of 1.47%. | ||||||||
On April 12, 2013, we amended this facility to remove the minimum net worth covenant. However, this change is not effective until the earlier of June 30, 2015 or the date of full repayment of the $75,000 variable rate unsecured private placement notes. On March 31, 2014, we amended the facility to reduce the minimum net worth covenant calculation to be consistent with the calculation for the $75,000 variable rate unsecured private placement notes. | ||||||||
We have $75,000 of variable rate unsecured private placement notes ("$75M Variable Rate Notes") bearing interest at 0.60% over LIBOR and are scheduled to mature on June 30, 2015. The notes do not require principal payments until maturity. Interest payments are reset and paid on a quarterly basis. As of June 28, 2014, the outstanding balance of the notes was $75,000 at an effective interest rate of 0.83%. | ||||||||
On September 27, 2013 we amended and restated our $50,000 accounts receivable securitization facility ("$50M A/R Line"), which expires on September 27, 2016. Under the terms of the facility, we pay interest at a rate per annum equal to LIBOR plus a margin of 0.75%. The facility is subject to customary fees, including a rate per annum equal to 0.80%, for the issuance of letters of credit and 0.26% for any unused portion of the facility. As is customary with transactions of this nature, our eligible accounts receivable are sold to a consolidated subsidiary. As of June 28, 2014 there was $25,075 outstanding under this securitization facility and there were $24,925 of letters of credit outstanding, primarily related to our property and casualty insurance programs. Borrowings outstanding as of June 28, 2014 under this facility bear interest at an average effective rate of 0.90%. | ||||||||
We have $100,000 of fixed rate unsecured senior notes ("$100M Fixed Rate Notes") with $50,000 of the notes bearing interest at a fixed interest rate of 3.73% per annum maturing April 15, 2023 and $50,000 of the notes bearing interest at a fixed interest rate of 3.88% per annum maturing on April 15, 2025. Interest on the notes is payable semiannually. As of June 28, 2014, the outstanding balance of the notes was $100,000 at an effective rate of 3.81%. | ||||||||
See Note 6, "Derivative Financial Instruments" of the Notes to the Consolidated Financial Statements for details of our interest rate swap and hedging activities related to our outstanding debt. | ||||||||
The credit facilities, loan agreements, fixed rate notes and variable rate notes contain various restrictive covenants that, among other matters, require us to maintain a minimum stockholders’ equity and a maximum leverage ratio. These debt arrangements also contain customary representations, warranties, covenants and indemnifications. At June 28, 2014, we were in compliance with all debt covenants. | ||||||||
The following table summarizes payments due on long-term debt, including capital leases, as of June 28, 2014 for the next five fiscal years and thereafter: | ||||||||
2015 | $ | 792 | ||||||
2016 | 75,230 | |||||||
2017 | 91,000 | |||||||
2018 | — | |||||||
2019 and thereafter | 100,000 | |||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Fair Value Measurements | ' | |||||||||||
Fair Value Measurements | ||||||||||||
Generally accepted accounting principles (GAAP) defines fair value, establishes a framework for measuring fair value and establishes disclosure requirements about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We considered non-performance risk when determining fair value of our derivative financial instruments. The fair value hierarchy prescribed under GAAP contains the following three levels: | ||||||||||||
Level 1 — unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date. | ||||||||||||
Level 2 — other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including: | ||||||||||||
-quoted prices for similar assets or liabilities in active markets; | ||||||||||||
-quoted prices for identical or similar assets in non-active markets; | ||||||||||||
-inputs other than quoted prices that are observable for the asset or liability; and | ||||||||||||
-inputs that are derived principally from or corroborated by other observable market data. | ||||||||||||
Level 3 — unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. | ||||||||||||
Except for assets included in our pension portfolio, we do not have any Level 3 assets or liabilities and we have not transferred any items between fair value levels during fiscal year 2014. See Note 13, "Employee Benefit Plans" for additional information regarding our pension plan assets. | ||||||||||||
The following tables summarize the assets and liabilities measured at fair value on a recurring basis as of June 28, 2014 and June 29, 2013: | ||||||||||||
As of June 28, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Other assets: | ||||||||||||
Money market mutual funds | $ | 3,309 | $ | — | $ | 3,309 | ||||||
Equity and fixed income mutual funds | 29,358 | — | 29,358 | |||||||||
Cash surrender value of life insurance policies | — | 14,287 | 14,287 | |||||||||
Total assets | $ | 32,667 | $ | 14,287 | $ | 46,954 | ||||||
Accrued expenses: | ||||||||||||
Derivative financial instruments | $ | — | $ | 930 | $ | 930 | ||||||
Total liabilities | $ | — | $ | 930 | $ | 930 | ||||||
As of June 29, 2013 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Other assets: | ||||||||||||
Money market mutual funds | $ | 2,964 | $ | — | $ | 2,964 | ||||||
Equity and fixed income mutual funds | 23,811 | — | 23,811 | |||||||||
Cash surrender value of life insurance policies | — | 13,377 | 13,377 | |||||||||
Total assets | $ | 26,775 | $ | 13,377 | $ | 40,152 | ||||||
Accrued expenses: | ||||||||||||
Derivative financial instruments | $ | — | $ | 1,136 | $ | 1,136 | ||||||
Total liabilities | $ | — | $ | 1,136 | $ | 1,136 | ||||||
The cash surrender value of life insurance policies are primarily investments established to fund the obligations of the Company's non-qualified, non-contributory supplemental executive retirement plan (SERP). The money market, equity and fixed income mutual funds are investments established to fund the Company's non-qualified deferred compensation plan. | ||||||||||||
The following tables summarize the fair value of assets and liabilities that are recorded at historical cost as of June 28, 2014 and June 29, 2013: | ||||||||||||
As of June 28, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 37,118 | $ | — | $ | 37,118 | ||||||
Total assets | $ | 37,118 | $ | — | $ | 37,118 | ||||||
Current maturities of long-term debt | $ | — | $ | 792 | $ | 792 | ||||||
Long-term debt, net of current maturities | — | 263,191 | 263,191 | |||||||||
Total liabilities | $ | — | $ | 263,983 | $ | 263,983 | ||||||
As of June 29, 2013 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 38,590 | $ | — | $ | 38,590 | ||||||
Total assets | $ | 38,590 | $ | — | $ | 38,590 | ||||||
Current maturities of long-term debt | $ | — | $ | 18 | $ | 18 | ||||||
Long-term debt, net of current maturities | — | 175,000 | 175,000 | |||||||||
Total liabilities | $ | — | $ | 175,018 | $ | 175,018 | ||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended |
Jun. 28, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
We use interest rate swap contracts to limit exposure to changes in interest rates and manage the total debt that is subject to variable and fixed interest rates. The interest rate swap contracts we utilize modify our exposure to interest rate risk by converting variable rate debt to a fixed rate without an exchange of the underlying principal amount. Approximately 45% of our outstanding variable rate debt had its interest payments modified using interest rate swap contracts at June 28, 2014. | |
We do not have any derivative financial instruments that have been designated as either a fair value hedge, a hedge of net investment in a foreign operation, or that are held for trading or speculative purposes. Cash flows associated with derivative financial instruments are classified in the same category as the cash flows hedged in the Consolidated Statements of Cash Flows. | |
As of June 28, 2014 and June 29, 2013, we had $930 and $1,136, respectively, of liabilities on interest rate swap contracts that are classified as "Accrued expenses" in the Consolidated Balance Sheets. Of the $1,053 net gain deferred in accumulated other comprehensive income as of June 28, 2014, a $319 loss is expected to be reclassified to interest expense in the next twelve months. | |
As of June 28, 2014 and June 29, 2013, all derivative financial instruments were designated as hedging instruments. | |
As of June 28, 2014, we had interest rate swap contracts to pay fixed rates of interest and to receive variable rates of interest based on the three-month LIBOR, all of which mature in 13-24 months. The average rate on the $75,000 of interest rate swap contracts was 1.25% as of June 28, 2014. These interest rate swap contracts are highly effective cash flow hedges and accordingly, gains or losses on any ineffectiveness were not material to any period. |
Other_Noncurrent_Liabilities
Other Noncurrent Liabilities | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ' | |||||||
Other Noncurrent Liabilities | ' | |||||||
Other Noncurrent Liabilities | ||||||||
Other noncurrent liabilities as of June 28, 2014 and June 29, 2013 included the following: | ||||||||
June 28, 2014 | June 29, 2013 | |||||||
Multi-employer pension withdrawal liability | $ | 28,516 | $ | 22,059 | ||||
Pension plan liability | 15,422 | 12,159 | ||||||
Executive deferred compensation plan liability | 30,584 | 26,775 | ||||||
Supplemental executive retirement plan liability | 16,814 | 14,826 | ||||||
Accrued income taxes | 12,043 | 9,726 | ||||||
Workers' compensation liability | 14,837 | 15,374 | ||||||
Other liabilities | 3,477 | 4,161 | ||||||
Total other noncurrent liabilities | $ | 121,693 | $ | 105,080 | ||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
Earnings Per Share | ||||||||||||
Accounting Standards Codification (ASC) 260-10-45, Participating Securities and the Two-Class Method ("ASC 260-10-45"), addresses whether awards granted in unvested share-based payment transactions that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and therefore are included in computing earnings per share under the two-class method. Participating securities are securities that may participate in dividends with common stock and the two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that would otherwise have been available to common shareholders. Under the two-class method, earnings for the period are allocated between common shareholders and other shareholders, based on their respective rights to receive dividends. Certain restricted stock awards granted under our Equity Plans are considered participating securities as these awards receive non-forfeitable dividends at the same rate as common stock. | ||||||||||||
For the Fiscal Years | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income from continuing operations | $ | 56,065 | $ | 50,506 | $ | 24,487 | ||||||
Less: Income allocable to participating securities | (610 | ) | (710 | ) | — | |||||||
Net income from continuing operations available to common stockholders | 55,455 | 49,796 | 24,487 | |||||||||
Net loss from discontinued operations | (8,393 | ) | (3,786 | ) | (340 | ) | ||||||
Net income available to common stockholders | $ | 47,062 | $ | 46,010 | $ | 24,147 | ||||||
Basic earnings per share (shares in thousands): | ||||||||||||
Weighted average shares outstanding, basic | 19,568 | 18,970 | 18,494 | |||||||||
Basic earnings (loss) per common share: | ||||||||||||
From continuing operations | $ | 2.83 | $ | 2.62 | $ | 1.32 | ||||||
From discontinued operations | $ | (0.43 | ) | $ | (0.20 | ) | $ | (0.02 | ) | |||
Basic earnings per share | $ | 2.41 | $ | 2.43 | $ | 1.31 | ||||||
Diluted earnings per share (shares in thousands): | ||||||||||||
Weighted average shares outstanding, basic | 19,568 | 18,970 | 18,494 | |||||||||
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options | 373 | 322 | 237 | |||||||||
Weighted average shares outstanding, diluted | 19,941 | 19,292 | 18,731 | |||||||||
Diluted earnings (loss) per common share: | ||||||||||||
From continuing operations | $ | 2.78 | $ | 2.58 | $ | 1.31 | ||||||
From discontinued operations | $ | (0.42 | ) | $ | (0.20 | ) | $ | (0.02 | ) | |||
Diluted earnings per share | $ | 2.36 | $ | 2.38 | $ | 1.29 | ||||||
We excluded potential common shares related to our outstanding equity compensation grants of 88,000, 99,000 and 498,000 from the computation of diluted earnings per share for fiscal years 2014, 2013 and 2012, respectively. Inclusion of these shares would have been anti-dilutive. |
Restructuring_and_Impairment_C
Restructuring and Impairment Charges | 12 Months Ended | ||||
Jun. 28, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Restructuring and Impairment Charges | ' | ||||
Restructuring and Impairment Charges | |||||
There were no material restructuring or impairment charges in fiscal years 2014 or 2012. | |||||
In the fourth quarter of fiscal year 2013, we closed one of our rental facilities and restructured our direct sale businesses. The rental facility had become redundant as a result of the acquisition we made earlier in the fiscal year. In addition, we made the decision to transition our GKdirect Catalog business to a third-party catalog offering and outsource the fulfillment operations. This change resulted in the discontinuation of certain product offerings and the establishment of $565 of lower of cost or market reserves to reduce the carrying amount of inventory to its estimated net realizable value. In addition, we incurred charges for equipment write-downs and severance related to the closure of the distribution center. | |||||
The following table identifies the major components of the fiscal year 2013 fourth quarter restructuring and impairment charges and the corresponding income statement line items: | |||||
Asset | Statement of Operations Classification: | Amount | |||
Inventory | Cost of rental and direct sale revenue | $ | 565 | ||
Property, plant and equipment | Selling and administrative | 1,714 | |||
Other costs | Selling and administrative | 882 | |||
Total restructuring and impairment charges | $ | 3,161 | |||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | |||||||||||
Discontinued Operations | ||||||||||||
Discontinued operations include the operating results and other adjustments related to our Direct Sale Program Business ("Program Business") and Ireland business ("Ireland Business"), both of which had previously been included in our United States operating segment. We concluded that both the Program Business and Ireland Business meet the requirements to be presented as discontinued operations and, accordingly, the results of these operations have been reclassified to discontinued operations for all periods presented on the Consolidated Statements of Operations. | ||||||||||||
On December 31, 2013, we sold our Program Business. As a result of this agreement, we reduced the carrying value of the Program Business net assets as of December 28, 2013 to equal the estimated net proceeds from the transaction and recorded a corresponding pretax loss on the sale of $12,319 in the three months ended December 28, 2013, which is included in "Loss on sale and other adjustments, net of tax" in the table below. The loss on the sale was based on a preliminary estimate, which was finalized during the three months ended March 29, 2014. Separately, we completed the sale of our Ireland Business during the second quarter of fiscal year 2014 and recognized a pretax loss on the sale of $603, which has also been included in "Loss on sale and other adjustments, net of tax" in the table below. Total aggregate gross proceeds from the sales were $6,641. | ||||||||||||
In fiscal year 2013, as part of our annual fourth quarter impairment test and changes in our Program Business, we identified certain impairment indicators that required us to perform an assessment of the recoverability of the long-lived assets related to the business. As part of this assessment, we determined that the carrying value of certain long-lived assets exceeded their fair values. The estimated fair values were determined using a discounted cash flow approach. This analysis resulted in the impairment of certain long-lived assets, including computer software, customer contracts and other property and equipment of $3,601. In addition, the changes to our Program Business noted above resulted in an evaluation of the recoverability of related inventory. As part of this evaluation we established $3,046 of additional reserves to reduce inventory to its net realizable value based on our updated business plan. We also incurred professional services costs of $25 related to the changes. | ||||||||||||
Summarized financial information for discontinued operations is shown below: | ||||||||||||
For the Fiscal Years | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Rental and direct sale revenue from discontinued operations | $ | 17,844 | $ | 41,710 | $ | 40,984 | ||||||
Loss before income taxes | (279 | ) | (5,982 | ) | (465 | ) | ||||||
Loss, net of tax | (141 | ) | (3,786 | ) | (340 | ) | ||||||
Loss on sale and other adjustments, net of tax | (8,252 | ) | — | — | ||||||||
Net loss from discontinued operations, net of tax | $ | (8,393 | ) | $ | (3,786 | ) | $ | (340 | ) | |||
For the Fiscal Year | ||||||||||||
2014 | ||||||||||||
Loss in excess of carrying value of Program Business | $ | (11,559 | ) | |||||||||
Transaction and related costs | (675 | ) | ||||||||||
Loss on sale of Program Business | (12,234 | ) | ||||||||||
Loss on sale of Ireland Business | (603 | ) | ||||||||||
Pretax loss on sale of businesses | (12,837 | ) | ||||||||||
Income tax benefit | 4,585 | |||||||||||
Loss on sale and other adjustments, net of tax | $ | (8,252 | ) | |||||||||
The carrying amount of the major classes of assets and liabilities related to the Program Business as of June 29, 2013 were as follows: | ||||||||||||
29-Jun-13 | ||||||||||||
Accounts receivable, net | $ | 4,557 | ||||||||||
Inventory | 16,591 | |||||||||||
Other current assets | 554 | |||||||||||
Total current assets | $ | 21,702 | ||||||||||
Accounts payable | $ | 964 | ||||||||||
Accrued expenses and other current liabilities | 2,982 | |||||||||||
Total current liabilities | $ | 3,946 | ||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stockholders' Equity | ' | |||||||||||||||
Stockholders' Equity | ||||||||||||||||
We issue Class A shares of our stock, and each share is entitled to one vote and is freely transferable. | ||||||||||||||||
As of June 28, 2014, we have a $175,000 share repurchase program which was originally authorized by our Board of Directors in May 2007 for $100,000 and increased to $175,000 in May 2008. Under this repurchase program, we repurchased 204,819 shares in open market transactions totaling $11,672 in fiscal year 2014. We did not repurchase any shares in fiscal years 2013 or 2012. As of June 28, 2014, we had approximately $46,164 remaining under this authorization. | ||||||||||||||||
Share-Based Payment Plans | ||||||||||||||||
On November 6, 2013, our shareholders approved the G&K Services, Inc. Restated Equity Incentive Plan (2013) ("Restated Plan"). This plan restates our 2006 Equity Incentive Plan ("2006 Plan") approved by shareholders at our November 16, 2006 annual meeting and our Restated Equity Incentive Plan (2010) ("2010 Plan") approved by our shareholders on November 4, 2010. The total number of authorized shares under the Restated Plan is 4,000,000 (2,000,000 under the 2006 Plan, 1,000,000 under the 2010 Plan and an additional 1,000,000 under the Restated Plan). Only 1,600,000 of the awards granted under the Restated Plan can be stock appreciation rights, restricted stock, restricted stock units, deferred stock units or stock. As of June 28, 2014, 1,536,160 equity awards were available for grant. | ||||||||||||||||
The Restated Plan allows us to grant share-based awards, including restricted stock and options to purchase our common stock, to our key employees and non-employee directors. Stock options are granted for a fixed number of shares with an exercise price equal to the fair market value of the shares at the date of grant. Exercise periods for the stock options are generally limited to a maximum of 10 years and a minimum of one year and generally vest over three years. Restricted stock grants to employees generally vest over five years. We issue new shares upon the grant of restricted stock or exercise of stock options. | ||||||||||||||||
On April 3, 2012, the board of directors declared a $6.00 per share special cash dividend to be paid on April 27, 2012, to shareholders of record at the close of business on April 13, 2012. When public companies pay significant cash dividends, the price of the common stock typically decreases by an amount equal to the special cash dividend on the ex-dividend date. Therefore, on March 30, 2012, in anticipation of the special cash dividend, the Compensation Committee and the Board of Directors approved amendments to our 1998 Stock Option and Compensation Plan and our Restated Equity Incentive Plan (2010) to require an equitable adjustment to all outstanding stock option awards in the case of a special or extraordinary cash dividend. Since the amendments were made in contemplation of the special cash dividend, additional share-based compensation expense of $2,095 was recognized in fiscal year 2012. In addition, we will recognize an additional $690 over the remaining requisite service period of the unvested stock options. Following the dividend declaration on April 3, 2012 to preserve the intrinsic value for option holders, the board also approved, pursuant to the terms of the amended plans, an adjustment to the exercise price (equivalent to the special dividend) for all outstanding non-qualified options. This adjustment did not result in any additional incremental compensation expense as the aggregate fair value, aggregate intrinsic value and the ratio of the exercise price to the market price were approximately equal immediately before and after the adjustment. There was no incremental compensation expense that resulted from the special cash dividend declared in April 2014, since the Restated Plan now requires an equitable adjustment to all outstanding stock option awards in the case of a special or extraordinary cash dividend. | ||||||||||||||||
Compensation cost for share-based compensation plans is recognized on a straight-line basis over the requisite service period of the award. The share-based compensation reflects estimated forfeitures adjusted for actual forfeiture experience. The amount of compensation cost, including the additional amounts related to the amendment of the plans noted above, that has been recognized in the Consolidated Statements of Operations was $6,318, $5,001 and $6,037 for fiscal years 2014, 2013 and 2012, respectively. As share-based compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from the exercise of stock options or release of restrictions on the restricted stock. At the time share-based awards are exercised, cancelled, expire or restrictions lapse, we recognize adjustments to additional paid-in capital or income tax expense. The total net income tax benefit recognized in the Consolidated Statements of Operations for share-based compensation arrangements was $2,243, $1,709 and $2,124 for fiscal years 2014, 2013 and 2012, respectively. No amount of share-based compensation expense was capitalized during the periods presented. | ||||||||||||||||
On August 23, 2012, our Chief Executive Officer was granted a performance based restricted stock award (the "Performance Award"). The Performance Award has both a financial performance component and a service component. The Performance Award has a target level of 100,000 restricted shares, a maximum award of 150,000 restricted shares and a minimum award of 50,000 restricted shares, subject to attainment of financial performance goals and service conditions. | ||||||||||||||||
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model using the assumptions noted in the following table. Expected volatility is based on the historic volatility of our stock, as we believe that is the best estimate of volatility over the term of the options. We use historical data to estimate option exercises and employee terminations within the valuation model. The expected term of the options granted is derived from historical data and represents the period of time that options granted are expected to be outstanding. The risk free interest rate for each option is the interpolated market yield on a U.S. Treasury bill with a term comparable to the expected term of the granted stock option. | ||||||||||||||||
For the Fiscal Years | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected share price volatility | 27.40% - 27.65% | 27.49% - 28.99% | 27.50% - 29.15% | |||||||||||||
Weighted average volatility | 27.52% | 28.34% | 28.46% | |||||||||||||
Expected dividend yield | 1.98% - 2.03% | 2.43% - 2.44% | 1.45% - 1.95% | |||||||||||||
Expected term (in years) | 6-May | 6-May | 6-May | |||||||||||||
Risk free rate | 1.63% - 2.03% | 0.62% - 0.92% | 0.82% - 1.27% | |||||||||||||
A summary of stock option activity under our plans as of June 28, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Shares | Weighted Average | Weighted Average | Aggregate | |||||||||||||
Exercise Prices | Remaining | Intrinsic Value | ||||||||||||||
Contractual Term | ||||||||||||||||
(in years) | ||||||||||||||||
Outstanding at June 29, 2013 | 1,051,633 | $ | 25.01 | |||||||||||||
Granted | 167,466 | 48.43 | ||||||||||||||
Exercised | (355,228 | ) | 24.63 | |||||||||||||
Forfeited or expired | (5,369 | ) | 28.32 | |||||||||||||
Outstanding at June 28, 2014 | 858,502 | $ | 24.86 | 6.49 | $ | 23,079 | ||||||||||
Exercisable at June 28, 2014 | 507,264 | $ | 18.01 | 5.13 | $ | 17,108 | ||||||||||
The weighted-average fair value of stock options on the date of grant during fiscal years 2014, 2013 and 2012 was $12.16, $6.35 and $6.10, respectively. The total intrinsic value of stock options exercised was $12,093, $7,643 and $665 for fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||
We received proceeds from the exercise of stock options of $8,748, $20,401 and $2,858 in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||
A summary of the status of our non-vested shares of restricted stock as of June 28, 2014 and changes during the year ended June 28, 2014, is presented below: | ||||||||||||||||
Shares | Weighted-Average | |||||||||||||||
Grant-Date Fair Value | ||||||||||||||||
Non-vested at June 29, 2013 | 301,995 | $ | 27.23 | |||||||||||||
Granted | 113,162 | 54.7 | ||||||||||||||
Vested | (102,313 | ) | 26.94 | |||||||||||||
Forfeited | (8,041 | ) | 29.21 | |||||||||||||
Non-vested at June 28, 2014 | 304,803 | $ | 37.48 | |||||||||||||
The table above does not include the shares assumed under the Performance Award, as they have not been granted. | ||||||||||||||||
As of June 28, 2014, there was $11,732 of total unrecognized compensation expense related to non-vested share-based compensation arrangements. That expense is expected to be recognized over a weighted-average period of 3.0 years. The total fair value of restricted shares vested during the fiscal years ended 2014, 2013 and 2012 was $2,757, $2,911 and $3,078, respectively. | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
The components of accumulated other comprehensive income, net of tax, are as follows: | ||||||||||||||||
For the Fiscal Years | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Foreign currency translation | $ | 22,682 | $ | 24,093 | $ | 30,552 | ||||||||||
Pension benefit liabilities | (19,748 | ) | (15,650 | ) | (27,759 | ) | ||||||||||
Derivative financial instruments | 1,053 | 946 | (898 | ) | ||||||||||||
Accumulated other comprehensive income | $ | 3,987 | $ | 9,389 | $ | 1,895 | ||||||||||
Changes in accumulated other comprehensive income were as follows: | ||||||||||||||||
For the Fiscal Year Ended June 28, 2014 | ||||||||||||||||
Foreign currency translation adjustment | Pension benefit liabilities | Derivative financial instruments | Total | |||||||||||||
Accumulated other comprehensive income (loss) as of June 29, 2013 | $ | 24,093 | $ | (15,650 | ) | $ | 946 | $ | 9,389 | |||||||
Other comprehensive income (loss) before reclassifications | (1,411 | ) | (5,230 | ) | (224 | ) | (6,865 | ) | ||||||||
Reclassifications from net accumulated other comprehensive income | — | 1,132 | 331 | 1,463 | ||||||||||||
Net current period other comprehensive income (loss) | (1,411 | ) | (4,098 | ) | 107 | (5,402 | ) | |||||||||
Accumulated other comprehensive income (loss) at June 28, 2014 | $ | 22,682 | $ | (19,748 | ) | $ | 1,053 | $ | 3,987 | |||||||
Amounts reclassified from accumulated other comprehensive income for fiscal year 2014 were as follows: | ||||||||||||||||
For the Fiscal Year | ||||||||||||||||
2014 | ||||||||||||||||
Losses on derivative financial instruments: | ||||||||||||||||
Interest rate swap contracts | $ | 533 | (a) | |||||||||||||
Tax benefit | (202 | ) | ||||||||||||||
Total, net of tax | 331 | |||||||||||||||
Pension benefit liabilities: | ||||||||||||||||
Amortization of net loss | 1,813 | (b) | ||||||||||||||
Tax benefit | (681 | ) | ||||||||||||||
Total, net of tax | 1,132 | |||||||||||||||
Total amounts reclassified, net of tax | $ | 1,463 | ||||||||||||||
(a) Included in interest expense. | ||||||||||||||||
(b) Included in the computation of net periodic pension cost, which is included in cost of rental and direct sale revenue and selling and administrative. This amount includes a pension plan which is not included in the net periodic pension cost in Note 13 because it is individually immaterial. See Note 13 for details regarding the pension plans. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The components of the provision for income taxes from continuing operations are as follows: | ||||||||||||
Fiscal Years | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 10,723 | $ | 15,646 | $ | 3,266 | ||||||
State and local | 844 | 3,687 | 1,204 | |||||||||
Foreign | 5,283 | 5,653 | 4,856 | |||||||||
16,850 | 24,986 | 9,326 | ||||||||||
Deferred | 16,880 | 3,660 | 2,845 | |||||||||
Provision for income taxes from continuing operations | $ | 33,730 | $ | 28,646 | $ | 12,171 | ||||||
The following table reconciles the United States statutory income tax rate with our effective income tax rate from continuing operations: | ||||||||||||
Fiscal Years | 2014 | 2013 | 2012 | |||||||||
United States statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal tax benefit | 3 | 3.7 | 2.8 | |||||||||
Foreign earnings taxed at different rates | — | (0.3 | ) | (2.8 | ) | |||||||
Change in uncertain tax position reserve | — | (1.6 | ) | 2.7 | ||||||||
Share-based compensation | — | — | 0.1 | |||||||||
Disposition of subsidiary | — | — | (3.8 | ) | ||||||||
Permanent differences and other, net | (0.4 | ) | (0.6 | ) | (0.8 | ) | ||||||
Effective income tax rate from continuing operations | 37.6 | % | 36.2 | % | 33.2 | % | ||||||
The change in uncertain tax position reserve in fiscal year 2013 was the result of the expiration of certain statutes and the favorable resolution of other tax matters, offset by reserve additions during the year. The change in the uncertain tax position reserve in fiscal year 2012 was the result of reserve additions related to a Canadian transfer pricing assessment which is being appealed, offset by the expiration of certain statutes. | ||||||||||||
The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: | ||||||||||||
Fiscal Years | 2014 | 2013 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Inventory | $ | (40,781 | ) | $ | (18,190 | ) | ||||||
Depreciation | (9,815 | ) | (18,819 | ) | ||||||||
Intangibles | (52,889 | ) | (44,757 | ) | ||||||||
Derivative financial instruments | (627 | ) | (563 | ) | ||||||||
Other | (2,606 | ) | (2,707 | ) | ||||||||
Total deferred tax liabilities | (106,718 | ) | (85,036 | ) | ||||||||
Deferred tax assets: | ||||||||||||
Compensation and employees benefits | 50,024 | 44,577 | ||||||||||
Accruals and reserves | 7,618 | 9,208 | ||||||||||
Share-based payments | 3,864 | 3,778 | ||||||||||
Net operating loss | 7,156 | 6,566 | ||||||||||
Other | 1,968 | 604 | ||||||||||
Gross deferred tax assets | 70,630 | 64,733 | ||||||||||
Less valuation allowance | (6,762 | ) | (5,753 | ) | ||||||||
Total deferred tax assets | 63,868 | 58,980 | ||||||||||
Net deferred tax liabilities | $ | (42,850 | ) | $ | (26,056 | ) | ||||||
The deferred tax assets include $7,156 and $6,175 related to state net operating loss carry-forwards which expire between fiscal year 2015 and fiscal year 2034, and $0 and $391 related to foreign net operating loss carry-forwards at June 28, 2014 and June 29, 2013, respectively. | ||||||||||||
We recognize a valuation allowance if it is more likely than not that some portion, or all, of a deferred tax asset will not be realized. The valuation allowance of $6,762 at June 28, 2014 and $5,753 at June 29, 2013, respectively, relates to net operating loss and capital loss carry-forwards. The valuation allowance increased by $1,012 during fiscal year 2014. | ||||||||||||
We have no foreign tax credit carry-forwards as of June 28, 2014. | ||||||||||||
We have not provided U.S. income taxes and foreign withholding taxes on undistributed earnings from our foreign subsidiaries of approximately $56,414 and $57,300 as of June 28, 2014 and June 29, 2013, respectively. These earnings are considered to be indefinitely reinvested in the operations of such subsidiaries. It is not practicable to estimate the amount of tax that may be payable upon distribution. | ||||||||||||
We recognize interest and penalties related to uncertain tax positions as a component of income tax expense. Net tax-related interest and penalties in fiscal year 2014 were $351 and were immaterial for fiscal years 2013 and 2012. As of June 28, 2014 and June 29, 2013, we had $2,061 and $1,620, respectively, of accrued interest and penalties related to uncertain tax positions, of which $1,704 and $1,353 would favorably affect our effective tax rate in any future periods, if the positions are effectively settled in our favor. | ||||||||||||
We file income tax returns in the United States, Canada and multiple state jurisdictions. We have substantially concluded all U.S. Federal income tax examinations through fiscal year 2010 and all Canadian income tax examinations through fiscal year 2004. The Canadian Revenue Agency (CRA) raised assessments for fiscal years 2005 to 2007 to which we have objected. The issue for these years is currently under review by the U.S. and Canadian competent authority divisions. With few exceptions, we are no longer subject to state and local income tax examinations prior to fiscal year 2009. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
Fiscal Years | 2014 | 2013 | ||||||||||
Beginning balance | $ | 9,338 | $ | 11,328 | ||||||||
Tax positions related to current year: | ||||||||||||
Gross increase | 1,196 | 1,550 | ||||||||||
Gross decrease | — | — | ||||||||||
Tax positions related to prior years: | ||||||||||||
Gross increase | 1,090 | 170 | ||||||||||
Gross decrease | (152 | ) | (161 | ) | ||||||||
Settlements | (114 | ) | (2,147 | ) | ||||||||
Lapses in statutes of limitations | (532 | ) | (1,402 | ) | ||||||||
Ending balance | $ | 10,826 | $ | 9,338 | ||||||||
As of June 28, 2014 and June 29, 2013, the total amount of unrecognized tax benefits that would favorably affect the effective tax rate, if recognized was $2,340 and $2,665. We are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||||||||||
Employee Benefit Plans | ||||||||||||||||||||||||
Pension Plan and Supplemental Executive Retirement Plan | ||||||||||||||||||||||||
We have a noncontributory defined benefit pension plan (the "Pension Plan") covering substantially all employees who were employed as of July 1, 2005, except certain employees who are covered by union-administered plans. Benefits are based on the number of years of service and each employee’s compensation near retirement. We make annual contributions to the Pension Plan consistent with federal funding requirements. | ||||||||||||||||||||||||
Annual benefits under the Supplemental Executive Retirement Plan ("SERP") are based on years of service and individual compensation near retirement. We have purchased life insurance contracts and other investments that could be used to fund the retirement benefits under this plan. The value of these insurance contracts and investments as of June 28, 2014 and June 29, 2013 were $11,579 and $10,796, respectively, and are included in the "Other noncurrent assets" line item in the Consolidated Balance Sheets. | ||||||||||||||||||||||||
We froze our Pension Plan and SERP effective January 1, 2007. Future growth in benefits will not occur beyond this date. | ||||||||||||||||||||||||
Applicable accounting standards require that the Consolidated Balance Sheet reflect the funded status of the pension and postretirement plans. The funded status of the plan is measured as the difference between the plan assets at fair value and the projected benefit obligation. We have recognized the aggregate of all under-funded plans within other noncurrent liabilities. Expected contributions to the plan over the next 12 months that exceed the fair value of plan assets are reflected in accrued liabilities. | ||||||||||||||||||||||||
Unrecognized differences between actual amounts and estimates based on actuarial assumptions are included in "Accumulated other comprehensive income" in our Consolidated Balance Sheets. The difference between actual amounts and estimates based on actuarial assumptions are recognized in other comprehensive income in the period in which they occur. | ||||||||||||||||||||||||
The estimated amortization from accumulated other comprehensive income into net periodic benefit cost during fiscal year 2015 is $2,406 which is related primarily to net actuarial losses. | ||||||||||||||||||||||||
Obligations and Funded Status at June 28, 2014 and June 29, 2013 | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 76,758 | $ | 88,029 | $ | 15,548 | $ | 17,576 | ||||||||||||||||
Interest cost | 3,968 | 3,738 | 758 | 688 | ||||||||||||||||||||
Actuarial loss/(gain) | 12,799 | (12,852 | ) | 2,138 | (2,057 | ) | ||||||||||||||||||
Benefits paid | (2,274 | ) | (2,157 | ) | (834 | ) | (659 | ) | ||||||||||||||||
Projected benefit obligation, end of year | $ | 91,251 | $ | 76,758 | $ | 17,610 | $ | 15,548 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 64,599 | $ | 53,792 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 11,240 | 4,881 | — | — | ||||||||||||||||||||
Employer contributions | 2,420 | 8,083 | 834 | 659 | ||||||||||||||||||||
Benefits paid | (2,274 | ) | (2,157 | ) | (834 | ) | (659 | ) | ||||||||||||||||
Fair value of plan assets, end of year | $ | 75,985 | $ | 64,599 | $ | — | $ | — | ||||||||||||||||
Funded status-net amount recognized | $ | (15,266 | ) | $ | (12,159 | ) | $ | (17,610 | ) | $ | (15,548 | ) | ||||||||||||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Accrued benefit liability | $ | (15,266 | ) | $ | (12,159 | ) | $ | (17,610 | ) | $ | (15,548 | ) | ||||||||||||
Net amount recognized | $ | (15,266 | ) | $ | (12,159 | ) | $ | (17,610 | ) | $ | (15,548 | ) | ||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Accumulated other comprehensive loss/(gain) related to: | ||||||||||||||||||||||||
Unrecognized net actuarial losses/(gains) | $ | 4,560 | $ | (16,817 | ) | $ | 1,995 | $ | (2,458 | ) | ||||||||||||||
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with an accumulated benefit obligation in excess of plan assets were $91,251, $91,251 and $75,985, respectively, as of June 28, 2014 and $76,758, $76,758 and $64,599, respectively, as of June 29, 2013. No pension plans had plan assets in excess of accumulated benefit obligations at June 28, 2014 or June 29, 2013. | ||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Interest cost | $ | 3,968 | $ | 3,738 | $ | 3,807 | $ | 758 | $ | 688 | $ | 774 | ||||||||||||
Expected return on assets | (4,638 | ) | (4,227 | ) | (3,905 | ) | — | — | — | |||||||||||||||
Amortization of net loss | 1,636 | 3,312 | 1,482 | 143 | 401 | 92 | ||||||||||||||||||
Net periodic benefit cost | $ | 966 | $ | 2,823 | $ | 1,384 | $ | 901 | $ | 1,089 | $ | 866 | ||||||||||||
Assumptions | ||||||||||||||||||||||||
The following weighted average assumptions were used to determine benefit obligations for the plans at June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.5 | % | 5.25 | % | 4.3 | % | 5 | % | ||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||||||
The following weighted average assumptions were used to determine net periodic benefit cost for the plans for the years ended June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 5.25 | % | 4.3 | % | 5 | % | 4 | % | ||||||||||||||||
Expected return on plan assets | 7.25 | 7.5 | N/A | N/A | ||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||
The asset allocations in the pension plan at June 28, 2014 and June 29, 2013 are as follows: | ||||||||||||||||||||||||
Target Asset | Actual Asset | |||||||||||||||||||||||
Allocations | Allocations | |||||||||||||||||||||||
2014 | 2014 | 2013 | ||||||||||||||||||||||
International equity | 8 | % | 6.8 | % | 13.6 | % | ||||||||||||||||||
Large cap equity | 26 | 25.9 | 31.2 | |||||||||||||||||||||
Small cap equity | 5 | 4.8 | 8.1 | |||||||||||||||||||||
Absolute return strategy funds | 16 | 15.3 | 15.8 | |||||||||||||||||||||
Fixed income | 45 | 47 | 22.9 | |||||||||||||||||||||
Long/short equity fund | — | 0.2 | 8.4 | |||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||
Our retirement committee, assisted by outside consultants, evaluates the objectives and investment policies concerning our long-term investment goals and asset allocation strategies. Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term. To develop the expected long-term rate of return on asset assumptions, we consider the historical returns and future expectations of returns for each asset class, as well as the target asset allocation and investment goals of the pension portfolio. This resulted in the selection of 6.50% expected return on plan assets for fiscal year 2015 and 7.25% expected return on plan assets for fiscal year 2014. The investment goals are (1) to meet or exceed the assumed actuarial rate of return over the long term within reasonable and prudent levels of risk, and (2) to preserve the real purchasing power of assets to meet future obligations. The nature and duration of benefit obligations, along with assumptions concerning asset class returns and return correlations, are considered when determining an appropriate asset allocation to achieve the investment objectives. Pension plan assets for our qualified pension plans are held in a trust for the benefit of the plan participants and are invested in a diversified portfolio of equity investments, fixed income investments, hedge funds and cash. Risk targets are established and monitored against acceptable ranges. All investment policies and procedures are designed to ensure that the plans' investments are in compliance with the Employee Retirement Income Security Act. Guidelines are established defining permitted investments within each asset class. | ||||||||||||||||||||||||
During fiscal year 2012, we conducted a study to assess an asset-liability strategy. The results of this study emphasized the importance of managing the volatility of pension assets relative to pension liabilities while still achieving a competitive investment return, achieving diversification between and within various asset classes, and managing other risks. In order to reduce the volatility between the value of pension assets and liabilities, we have established a "glide path approach" whereby we will increase the allocation to fixed income investments as our funded status increases. We regularly review our actual asset allocation and periodically rebalance the investments to the targeted allocation when considered appropriate. Target allocation ranges are guidelines, not limitations, and occasionally due to market conditions and other factors actual asset allocation may vary above or below a target. | ||||||||||||||||||||||||
The implementation of the investment strategy discussed above is executed through a variety of investment structures such as: direct share, common/collective trusts, or registered investment companies. Valuation methodologies differ for each of these structures. The valuation methodologies used for these investment structures are as follows: | ||||||||||||||||||||||||
Common and Preferred Stock, U.S. Government Securities, Corporate Debt and Registered Investment Companies: Investments are valued at the closing price reported on the active market on which the individual securities are traded. | ||||||||||||||||||||||||
Common/Collective Trusts (CCT): Investments in a collective investment vehicle are valued at their daily or monthly net asset value (NAV) per share or the equivalent. NAV per share or the equivalent is used for fair value purposes as a practical expedient. NAVs are calculated by the investment manager or sponsor of the fund. Certain of the CCT's represent investments in hedge funds or funds of hedge funds as well as other commingled equity funds. The classification level of these CCT's within the fair value hierarchy is determined by our ability to redeem the investment at net asset value in the near term of the measurement date. Investments in the underlying CCT's are not valued using quoted prices in active markets. Therefore no investments are classified as Level 1. All investments in CCT's that are redeemable at the net asset value reported by the investment managers within 90 days of the fiscal year end are classified as Level 2. All investments in the underlying CCT's that are not redeemable at the net asset value reported by the investment managers of the CCT's within 90 days of the fiscal year end because of a lock-up period or gate, but may be redeemed at a future date, are classified as Level 3. | ||||||||||||||||||||||||
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | ||||||||||||||||||||||||
The following table presents the pension plan investments using the fair value hierarchy discussed in Note 5, "Fair Value Measurements" of the Notes to the Consolidated Financial Statements, as of June 28, 2014: | ||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Interest-bearing cash | $ | 1,688 | $ | — | $ | — | $ | 1,688 | ||||||||||||||||
Receivables | 243 | — | — | 243 | ||||||||||||||||||||
Common/collective trusts | — | 3,611 | 167 | 3,778 | ||||||||||||||||||||
U.S. Government securities | 5,465 | 1,435 | — | 6,900 | ||||||||||||||||||||
Corporate debt | — | 27,065 | — | 27,065 | ||||||||||||||||||||
Registered investment companies | 36,311 | — | — | 36,311 | ||||||||||||||||||||
Total | $ | 43,707 | $ | 32,111 | $ | 167 | $ | 75,985 | ||||||||||||||||
The following table presents the pension plan investments using the fair value hierarchy discussed in Note 5, "Fair Value Measurements" of the Notes to the Consolidated Financial Statements, as of June 29, 2013: | ||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Interest-bearing cash | $ | 776 | $ | — | $ | — | $ | 776 | ||||||||||||||||
Receivable from common/collective trusts | 1,744 | — | — | 1,744 | ||||||||||||||||||||
Common stock | — | — | — | — | ||||||||||||||||||||
Common/collective trusts | — | 5,244 | 4,093 | 9,337 | ||||||||||||||||||||
Registered investment companies | 52,742 | — | — | 52,742 | ||||||||||||||||||||
Total | $ | 55,262 | $ | 5,244 | $ | 4,093 | $ | 64,599 | ||||||||||||||||
The following table presents a reconciliation of Level 3 assets held during the years ended June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Balance at beginning of the year | $ | 4,093 | $ | 12,132 | ||||||||||||||||||||
Realized gains | (828 | ) | (708 | ) | ||||||||||||||||||||
Net unrealized gains | 217 | 736 | ||||||||||||||||||||||
Net purchases, issuances and settlements | (3,315 | ) | (8,067 | ) | ||||||||||||||||||||
Balance at end of the year | $ | 167 | $ | 4,093 | ||||||||||||||||||||
We expect to contribute $1,660 to our pension plan and $796 to the SERP in fiscal year 2015. | ||||||||||||||||||||||||
Future changes in plan asset returns, assumed discount rates and various other factors related to our pension plan will impact our future pension expense and liabilities. We cannot predict the impact of these changes in the future and any changes may have a material impact on our results of operations and financial position. | ||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2015 | $ | 2,358 | $ | 795 | ||||||||||||||||||||
2016 | 2,515 | 820 | ||||||||||||||||||||||
2017 | 2,739 | 868 | ||||||||||||||||||||||
2018 | 3,022 | 940 | ||||||||||||||||||||||
2019 | 3,295 | 986 | ||||||||||||||||||||||
2020 to 2024 | 20,556 | 5,413 | ||||||||||||||||||||||
Multi-Employer Pension Plans | ||||||||||||||||||||||||
We participate in a number of union sponsored, collectively bargained multi-employer pension plans ("MEPPs"). Benefits generally are based on a fixed amount for each year of service, and, in many cases, are not negotiated with contributing employers or in some cases even known by contributing employers. None of our collective bargaining agreements require that a minimum contribution be made to the MEPPs. We record the required cash contributions to the MEPPs as an expense in the period incurred and a liability is recognized for any contributions due and unpaid, consistent with the accounting for defined contribution plans. In addition, we are responsible for our proportional share of any unfunded vested benefits related to the MEPPs. However, under the applicable accounting rules, we are not required to record a liability until we withdraw from the plan or when it becomes probable that a withdrawal will occur. | ||||||||||||||||||||||||
The risks of participating in U.S. MEPPs are different from single-employer pension plans in the following aspects: | ||||||||||||||||||||||||
• | Assets contributed to the MEPP by one employer may be used to provide benefits to employees of other participating employers. | |||||||||||||||||||||||
• | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | |||||||||||||||||||||||
• | If we stop participating in some of the MEPPs, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | |||||||||||||||||||||||
Employer's accounting for MEPPs (ASC 715-80) provides that a withdrawal liability should be recorded if circumstances that give rise to an obligation become probable and estimable. The amount of the withdrawal liability recorded is based on the best information available and is subject to change based on revised MEPP information received periodically from the union sponsors and other factors. | ||||||||||||||||||||||||
Central States Southeast and Southwest Areas Pension Fund | ||||||||||||||||||||||||
Beginning in fiscal year 2012, we commenced negotiations to discontinue our participation in the Central States Fund. We were ultimately successful and withdrew our participation in the Central States Fund in stages as various union contracts expired. Specifically, we partially withdrew from the Central States Fund in calendar year 2012, and in the third quarter of fiscal year 2012, we recorded a pretax charge of $24,004. This charge included the discounted actuarial value of the total estimated withdrawal liability, incentives for union participants and other related costs that had been incurred. We finalized our withdrawal in calendar year 2013, which resulted in the union sending us updated information related to our withdrawal liability. As a result, we recorded an additional withdrawal liability of $1,000 in the fourth quarter of fiscal year 2013. As of June 29, 2013 we had recorded an aggregate discounted estimated withdrawal liability of $21,700. We intended to make total payments of $32,400 over a 20 year period. | ||||||||||||||||||||||||
On September 19, 2013 we received two demands for payment of withdrawal liability, or payment demands, from the Central States Fund relating to our partial and complete withdrawals. The payment demands calculate the aggregate withdrawal liability to be $56,000 payable over 20 years, or $35,100 on an estimated discounted present value basis. | ||||||||||||||||||||||||
We do not agree with the Central States Fund's payment demands and plan to vigorously contest this matter. Most importantly, we believe that, in calculating our withdrawal amount, the Central States Fund has not given us appropriate credit for our partial withdrawal payments as required by applicable law and regulations. Previously, we filed our Request for Review with the Central States Fund, to which we received no response. We subsequently filed our arbitration demand. As part of these arbitration proceedings, we plan to contest the payment demands. We cannot offer any assurance that we will be successful, and ultimate resolution of this matter may have a material adverse effect on our results of operations in the period of resolution, however it is not expected to have a material effect on our financial condition or liquidity because any increase in payments would be spread over a 20 year period. | ||||||||||||||||||||||||
Separately, based on information received, as of September 28, 2013, we updated our previously recorded estimated withdrawal liability, using the same methodology previously used by us. Specifically, we have assumed aggregate payments of $34,500 over 20 years, using a discount rate of 5.25%, resulting in an estimated discounted present value of $23,500. This amount represents our best estimate of our aggregate withdrawal liability as of June 28, 2014. We consider this appropriate based on our interpretation of the plan document and the related statutory requirements. As a result, in addition to $113 of accretion expense related to the previously recorded liability, we recorded an additional discounted estimated withdrawal liability of $1,687 in the first quarter of fiscal year 2014. Moving forward, we do not anticipate that our estimated discounted withdrawal liability will change, except, depending on the outcome, in connection with resolution of the payment demands received from the Central States Fund and reductions in the outstanding withdrawal liability as payments are made. In addition, except in the case of a mass withdrawal or failure of the Central States Plan, we are no longer subject to fluctuations in the unfunded status of the plan caused by such things as investment returns, discount or mortality rates and various other assumptions. During the fiscal year 2014, we made total payments related to our withdrawal liability of $2,334 to the Central States Fund. | ||||||||||||||||||||||||
Other United States MEPPs | ||||||||||||||||||||||||
In the third quarter of fiscal year 2014, we began negotiations to withdraw from four other MEPPs, for which we had not previously recorded any withdrawal liabilities. Based on progress in the negotiations and our intentions, we have determined that it is probable that we will withdraw from the plans. Accordingly, we have recorded a pretax charge of $8,167. This charge included the estimated actuarial value of the total withdrawal liability, incentives for union participants and other related costs that have been and will be incurred. The amount of the withdrawal liability recorded is based on the best information available and is subject to change based on revised information received periodically from the union sponsors and other factors. However, any potential changes are not expected to have a material impact on our results of operation or financial condition. As of June 28, 2014, we had concluded negotiations with two of the four MEPPs and expect to finalize negotiations with the remaining two in fiscal 2015. Upon conclusion of negotiations and exit from these plans, we will no longer participate in any United States MEPPs. | ||||||||||||||||||||||||
Contributions to all MEPPs totaled $509, $779 and $1,282 in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Canadian MEPPs | ||||||||||||||||||||||||
Our Canadian subsidiaries participate in three multi-employer retirement funds known as the Ontario United Food and Commercial Workers Pension Plan, the Ontario Teamsters Multi Local Pension Trust Fund and the Regime Complementaire de Retrait De L'Industry du Camionnage (Region de Montreal) (the Quebec plan), collectively referred to as the Canadian MEPPs. Plan information for the Canadian MEPPs is not publicly available. These plans provide monthly retirement payments on the basis of the credits earned by the participating employees. For the Ontario plans, in the event that the plans are underfunded, the monthly benefit amount can be reduced by the trustees of the plan and G&K Services is not responsible for the underfunded status of the plan, which operates in a jurisdiction that does not require withdrawing employers to pay a withdrawal liability or other penalty. For the Quebec plan, employers can be held liable for unfunded liabilities and solvency deficiencies and accrued benefits cannot be reduced if there is a deficit unless the employer is insolvent. With respect to G&K's exposure to the Quebec plan, the most recent actuarial valuation as of December 31, 2010 indicates a surplus of approximately 14.5%. The collective bargaining agreements require contributions on the basis of hours worked. Total contributions to the Canadian MEPPs were $805, $823 and $787 in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
401(k) Plan | ||||||||||||||||||||||||
All full-time non-union and certain union, U.S. employees are eligible to participate in a 401(k) plan. Employee contributions are invested, at the employees' direction, among a variety of investment alternatives. Participants may transfer amounts into and out of the investment alternatives at any time. Participants receive a matching contribution of 100% of the first 3% of the participant's contributed pay plus 50% of the next 2% of the participant’s contributed pay. The matching contributions under the 401(k) plan vest immediately. We incurred matching contribution expense of $5,310, $5,236 and $4,844 in fiscal years 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Executive Deferred Compensation Plan | ||||||||||||||||||||||||
Under the Executive Deferred Compensation Plan ("DEFCO Plan"), we match a portion of designated employees' contributions. Employee contributions along with the company match are invested, at the employees' direction, among a variety of investment alternatives. Participants may transfer amounts into and out of the investment alternatives at any time. Eligible participants receive a matching contribution of 50% of the first 10% of the participant's contributed pay plus an additional 2.5% of the participant's eligible pay. Our expense associated with the DEFCO Plan was $1,167, $1,169 and $1,191 in fiscal years 2014, 2013 and 2012, respectively. The accumulated benefit obligation of $32,667 as of June 28, 2014 has been split between "Other noncurrent liabilities" and "Compensation and employee benefits" and $26,775 as of June 29, 2013 is included in "Other noncurrent liabilities" in the accompanying Consolidated Balance Sheets. We have purchased investments, including stable income and stock index managed funds, based on investment elections made by the employees, which may be used to fund the retirement benefits. The investments are recorded at estimated fair value based on quoted market prices and are split between "Other current assets" and "Other noncurrent assets" in the accompanying Consolidated Balance Sheets. Offsetting unrealized gains and losses are included in income on a current basis. At June 28, 2014 and June 29, 2013, the estimated fair value of the investments was $32,667 and $26,775, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Jun. 28, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
We are involved in a variety of legal actions relating to personal injury, employment, environmental and other legal matters arising in the normal course of business, including, without limitation, those described below. | ||||
Environmental Matters | ||||
From time-to-time, we are involved in environmental-related proceedings by certain governmental agencies, which relate primarily to allegedly operating certain facilities in noncompliance with required permits. In addition to these proceedings, in the normal course of our business, we are subject to, among other things, periodic inspections by regulatory agencies, and we are involved in the remediation of various properties. As of June 28, 2014 and June 29, 2013, we had reserves of approximately $900 and $1,700 respectively, related to these matters. There was $371 of expense for these matters for fiscal year 2014 and $330 expense for fiscal year 2013. | ||||
Legal Matters | ||||
The United States Office of Federal Contract Compliance Programs, or OFCCP, is, as part of routine audits, conducting a review of certain of our employment practices. The OFCCP has issued a Predetermination Notice to one of our facilities and a Notice of Violation to another. Audits of six other facilities, where the OFCCP may claim there are similar alleged violations, are ongoing. We have been engaged in discussions with the OFCCP and believe that our practices are lawful and without bias. While we cannot predict the ultimate outcome of these matters with certainty and it is possible that we may incur additional losses in excess of established reserves, we believe the possibility of a material adverse effect on our results of operations or financial position is remote. | ||||
See Note 13, "Employee Benefit Plans" of the Notes to the Consolidated Financial Statements for information regarding disputed amounts related to our withdrawal from the Central States Southeast and Southwest Areas Pension Fund. | ||||
Leases | ||||
We lease certain facilities and equipment for varying periods. Most facility leases contain renewal options from one to five years. Management expects that in the normal course of business, leases will be renewed or replaced by other leases. | ||||
The following is a schedule as of June 28, 2014 of future minimum base rental payments for operating leases that had initial or remaining lease terms in excess of one year: | ||||
Operating Leases | ||||
2015 | $ | 22,326 | ||
2016 | 18,621 | |||
2017 | 14,705 | |||
2018 | 9,782 | |||
2019 | 7,641 | |||
2020 to 2024 | 11,127 | |||
Total minimum lease payments | $ | 84,202 | ||
Total rent expense for operating leases, including those with terms of less than one year, was $31,677 in fiscal year 2014, $30,858 in fiscal year 2013 and $31,708 in fiscal year 2012. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
We have two operating segments, United States (includes our Dominican Republic operations) and Canada, which have been identified as components of our organization that are reviewed by our Chief Executive Officer to determine resource allocation and evaluate performance. Each operating segment derives revenues from the branded uniform and facility services programs. No single customer's transactions accounted for more than 2.0% of our total revenues. Substantially all of our customers are in the United States and Canada. | ||||||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1, "Summary of Significant Accounting Policies" of the Notes to the Consolidated Financial Statements). Corporate expenses are allocated to the segments based on segment revenue. We evaluate performance based on income from operations. | ||||||||||||||||
Financial information by segment is as follows: | ||||||||||||||||
United | Canada | Elimination | Total | |||||||||||||
States | ||||||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 752,802 | $ | 148,067 | $ | — | $ | 900,869 | ||||||||
Income from continuing operations | 79,290 | 16,825 | — | 96,115 | ||||||||||||
Interest expense | 6,320 | — | — | 6,320 | ||||||||||||
Total assets | 859,474 | 170,775 | (106,730 | ) | 923,519 | |||||||||||
Capital expenditures-net | 29,053 | 3,723 | — | 32,776 | ||||||||||||
Depreciation and amortization expense | 26,743 | 4,134 | — | 30,877 | ||||||||||||
Provision for income taxes | 28,684 | 5,046 | — | 33,730 | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 711,172 | $ | 154,846 | $ | — | $ | 866,018 | ||||||||
Income from continuing operations | 66,144 | 17,861 | — | 84,005 | ||||||||||||
Interest expense | 4,853 | — | — | 4,853 | ||||||||||||
Total assets | 831,860 | 161,675 | (96,249 | ) | 897,286 | |||||||||||
Capital expenditures-net | 31,113 | 4,411 | — | 35,524 | ||||||||||||
Depreciation and amortization expense | 27,050 | 5,125 | — | 32,175 | ||||||||||||
Provision for income taxes | 24,342 | 4,304 | — | 28,646 | ||||||||||||
2012 | ||||||||||||||||
Revenues | $ | 678,178 | $ | 150,775 | $ | — | $ | 828,953 | ||||||||
Income from continuing operations | 26,592 | 16,114 | — | 42,706 | ||||||||||||
Interest expense | 6,048 | — | — | 6,048 | ||||||||||||
Total assets | 803,388 | 151,783 | (81,440 | ) | 873,731 | |||||||||||
Capital expenditures-net | 26,056 | 7,970 | — | 34,026 | ||||||||||||
Depreciation and amortization expense | 28,738 | 5,245 | — | 33,983 | ||||||||||||
Provision for income taxes | 2,494 | 9,677 | — | 12,171 | ||||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts and Reserves | 12 Months Ended | |||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
Valuation and Qualifying Accounts and Reserves | ' | |||||||||||||||||||
Schedule II – Valuation and Qualifying Accounts and Reserves | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Additions | ||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Deductions | Balance at | |||||||||||||||
Beginning of | Costs and | Other | End of Year | |||||||||||||||||
Year | Expenses | Accounts | ||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||
28-Jun-14 | $ | 3,135 | $ | 1,980 | $ | — | $ | 1,418 | $ | 3,697 | ||||||||||
29-Jun-13 | $ | 2,666 | $ | 1,932 | $ | — | $ | 1,463 | $ | 3,135 | ||||||||||
30-Jun-12 | $ | 3,066 | $ | 1,490 | $ | — | $ | 1,890 | $ | 2,666 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Jun. 28, 2014 | ||
Accounting Policies [Abstract] | ' | |
Nature of Business | ' | |
Nature of Business | ||
G&K Services, Inc., founded in 1902 and headquartered in Minnetonka, Minnesota, is a service-focused market leader of branded uniform and facility services programs. We deliver value to our customers by enhancing their image and brand, and by promoting workplace safety, security and cleanliness. We accomplish this by providing high quality branded work apparel programs, and a variety of facility products and services, including floor mats, towels, mops and restroom hygiene products. We also manufacture certain work apparel garments that are used to support our garment rental and direct purchase programs. We have two operating segments, United States (includes the Dominican Republic) and Canada, which have been identified as components of our organization that are reviewed by our Chief Executive Officer to determine resource allocation and evaluate performance. | ||
Basis of Presentation | ' | |
Basis of Presentation | ||
Our Consolidated Financial Statements include the accounts of G&K Services, Inc. and all subsidiaries in which we have a controlling financial interest. Intercompany transactions and accounts are eliminated in consolidation. | ||
Our fiscal year ends on the Saturday nearest June 30. All references herein to "2014," "2013" and "2012" refer to the fiscal years ended June 28, 2014, June 29, 2013 and June 30, 2012, respectively. Fiscal years 2014, 2013 and 2012 consisted of 52 weeks. | ||
Use of Estimates | ' | |
Use of Estimates | ||
The preparation of Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect amounts and disclosures reported therein. Due to the inherent uncertainty involved in making estimates, actual results could differ from our estimates. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
We consider all investments purchased with an original maturity of three months or less to be cash equivalents | ||
Accounts Receivable | ' | |
Accounts Receivable | ||
Accounts receivable are recorded net of an allowance for expected losses. The allowance, recognized as an amount equal to anticipated future write-offs, is based on the age of outstanding balances, analysis of specific accounts, historical bad debt experience and current economic trends. We generally write-off uncollectible accounts receivable after all internal avenues of collection have been exhausted. | ||
Inventories | ' | |
Inventories | ||
Inventories consist of new goods and rental merchandise in service. New goods are stated at the lower of first-in, first-out (FIFO) cost or market. Merchandise placed in service to support our rental operations is amortized into cost of rental operations over the estimated useful lives of the underlying inventory items, on a straight-line basis, which results in a matching of the cost of the merchandise with the weekly rental revenue generated by the merchandise. Estimated lives of rental merchandise in service range from six months to four years. In establishing estimated lives for merchandise in service, management considers historical experience and the intended use of the merchandise. | ||
We review the estimated useful lives of our in-service inventory assets on a periodic basis or when trends in our business indicate that the useful lives for certain products might have changed. The selection of estimated useful lives is a sensitive estimate in which a change in lives can have a material impact on our results of operations. For example, during the fourth quarter of fiscal year 2013, we completed an analysis of certain in-service inventory assets which resulted in the estimated useful lives for these assets being extended to better reflect the estimated periods in which the assets will remain in service. The effect of the change in estimate increased income from operations by $6,136, net income by $3,867 and basic and diluted earnings per common share by $0.19 in fiscal year 2014 and increased income from operations by $2,605, net income by $1,655 and basic and diluted earnings per common share by $0.09 in fiscal year 2013. In addition, this change resulted in an increase in merchandise in service on the balance sheet of $8,741 and $2,605 as of June 28, 2014 and June 29, 2013, respectively. | ||
We estimate our losses related to inventory obsolescence by examining our inventory to determine if there are indicators that carrying values exceed the net realizable value. Significant factors that could indicate the need for inventory write-downs include the age of the inventory, anticipated demand for our products, historical inventory usage, revenue trends and current economic conditions. We believe that adequate adjustments have been made in the Consolidated Financial Statements; however, in the future, product lines and customer requirements may change, which could result in an increase in obsolete inventory reserves or additional inventory impairments. | ||
Property, Plant and Equipment | ' | |
Property, Plant and Equipment | ||
Property, plant and equipment are carried at cost. Depreciation is generally computed using the straight-line method over the following estimated useful lives: | ||
Life | ||
(Years) | ||
Automobiles and trucks | 3 to 8 | |
Machinery and equipment | 3 to 10 | |
Buildings | 20 to 33 | |
Building improvements | 10 | |
Costs of significant additions, renewals and betterments are capitalized. When an asset is sold or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts and the gain or loss on disposition is reflected in earnings. Repair and maintenance costs are charged to operating expense when incurred. | ||
Environmental Costs | ' | |
Environmental Costs | ||
We accrue various environmental related costs, which consist primarily of estimated clean-up costs, fines and penalties, when it is probable that we have incurred a liability and the amount can be reasonably estimated. When a single amount cannot be reasonably estimated but the cost can be estimated within a range, we accrue the minimum estimated amount. This accrued amount reflects our assumptions regarding the nature of the remedy and the outcome of discussions with regulatory agencies. Changes in the estimates on which the accruals are based, including unanticipated government enforcement actions, or changes in environmental regulations, could result in higher or lower costs. Accordingly, as investigations and other actions proceed, it is likely that adjustments to our accruals will be necessary to reflect new information. While we cannot predict the ultimate outcome of any of these matters with certainty, we believe the possibility of a material adverse effect on our results of operations or financial position is remote. | ||
Accruals for environmental liabilities are included in the "Accrued expenses - Other" line item in the Consolidated Balance Sheets. Environmental costs are capitalized if they extend the life of the related property, increase its capacity and/or mitigate or prevent future contamination. The cost of operating and maintaining environmental control equipment is charged to expense in the period incurred. | ||
Goodwill and Intangible Assets | ' | |
Goodwill, Intangible Assets and Other Long-Lived Assets | ||
The fair value of the purchase price of acquisitions in excess of the fair value of the underlying net assets is recorded as goodwill. Non-competition agreements that limit the seller from competing with us for a fixed period of time and acquired customer contracts are stated at fair value less accumulated amortization and are amortized over the terms of the respective agreements or estimated average life of an account, which ranges from five to 20 years. | ||
We test goodwill for impairment in the fourth quarter of each fiscal year or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. Reporting units for goodwill impairment review are operating segments, or components of an operating segment, that constitute a business for which discrete financial information is available, and for which segment management regularly reviews the operating results. Based on this analysis, we have identified two reporting units within our operating segments as of the fiscal year 2014 testing date. Our reporting units are U.S. Rental operations and Canadian Rental operations, with respective goodwill balances of $270,045 and $63,169, at June 28, 2014. During fiscal year 2014, we divested our Direct Sales reporting unit. There have been no other changes to our reporting units or in the allocation of goodwill to each respective reporting unit in fiscal years 2014, 2013 or 2012. | ||
In fiscal year 2014, we performed a qualitative assessment to test our reporting units' goodwill for impairment. Based on our qualitative assessment, we determined that it is more likely than not (i.e. a likelihood of more than 50 percent) that the fair value of all reporting units is greater than their carrying amount and therefore no impairment of goodwill was identified. In fiscal 2013 and 2012, we used a market valuation approach to determine the fair value of each reporting unit for our annual impairment test. The results of this test indicated that the estimated fair value exceeded the carrying value of our goodwill by more than 50% for our U.S. Rental and Canadian Rental reporting units for both fiscal years and therefore no impairment existed. All goodwill associated with our Direct Sales reporting unit had been previously impaired and written off. During the second quarter of fiscal year 2014, we recorded an impairment loss related to the divestiture of our Ireland business of $261. | ||
Long-lived assets, including definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During the fourth quarter of fiscal year 2013, we recorded an impairment loss related to customer contracts totaling $1,626. | ||
Retirement Plan Assets | ' | |
Retirement Plan Assets | ||
Retirement plan assets consist of equity and fixed income investment funds, common stock and life insurance contracts, which are stated at fair value | ||
Foreign Currency | ' | |
Foreign Currency | ||
For all significant foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated at the period-end exchange rates. Income statement accounts are translated using the average exchange rates prevailing during the year. Translation adjustments are reflected within "Accumulated other comprehensive income" in stockholders' equity | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Our rental operations business is largely based on written service agreements whereby we agree to pick-up soiled merchandise, launder and then deliver clean uniforms and other related products. The service agreements generally provide for weekly billing upon completion of the laundering process and delivery to the customer. Accordingly, we recognize revenue from rental operations in the period in which the services are provided. Revenue from rental operations also includes billings to customers for lost or damaged uniforms and replacement fees for non-personalized merchandise that is lost or damaged. Direct sale revenue is recognized in the period in which the product is shipped. Total revenues do not include sales tax as we consider ourselves a pass-through conduit for collecting and remitting sales tax. | ||
Insurance | ' | |
Insurance | ||
We carry large deductible insurance policies for certain obligations related to health, workers' compensation, auto and general liability programs. These deductibles range from $350 to $750 per occurrence. Estimates are used in determining the potential liability associated with reported claims and for losses that have occurred, but have not been reported. Management estimates generally consider historical claims experience, escalating medical cost trends, expected timing of claim payments and actuarial analyses provided by third parties. Changes in the cost of medical care, our ability to settle claims and the present value estimates and judgments used by management could have a material impact on the amount and timing of expense for any period | ||
Income Taxes | ' | |
Income Taxes | ||
Provisions for federal, state, and foreign income taxes are calculated based on reported pretax earnings and current tax law. Significant judgment is required in determining income tax provisions and evaluating tax positions. We periodically assess our liabilities and contingencies for all periods that are currently open to examination or have not been effectively settled based on the most current available information. If it is not more likely than not that our tax position will be sustained, we record our best estimate of the resulting tax liability and any applicable interest and penalties in the Consolidated Financial Statements. | ||
Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using statutory rates in effect for the year in which the differences are expected to reverse. We present the tax effects of these deferred tax assets and liabilities separately for each major tax jurisdiction. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that the changes are enacted. We record valuation allowances to reduce deferred tax assets when it is more likely than not that some portion of the asset may not be realized. We evaluate our deferred tax assets and liabilities on a periodic basis. We believe that we have adequately provided for our future income tax obligations based upon current facts, circumstances and tax law | ||
Derivative Financial Instruments | ' | |
Derivative Financial Instruments | ||
In the ordinary course of business, we are exposed to market risks. We utilize derivative financial instruments to manage interest rate risk and manage the total debt that is subject to variable and fixed interest rates. These interest rate swap contracts modify our exposure to interest rate risk by converting variable rate debt to a fixed rate or by locking in the benchmark interest rate on forecasted issuances of fixed rate swap contracts as cash flow hedges of the interest related to variable and fixed rate debt. | ||
All derivative financial instruments are recognized at fair value and are recorded in the "Other current assets" or "Accrued expenses - Other" line items in the Consolidated Balance Sheets. | ||
For derivative financial instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value on the derivative financial instrument is reported as a component of "Accumulated other comprehensive income" and reclassified into the "Interest expense" line item in the Consolidated Statements of Operations in the same period as the expenses from the cash flows of the hedged items are recognized. Cash payments or receipts are included in "Net cash provided by operating activities" in the Consolidated Statements of Cash Flows in the same period as the cash is settled. We perform an assessment at the inception of the hedge and on a quarterly basis thereafter, to determine whether our derivatives are highly effective in offsetting changes in the value of the hedged items. Any change in the fair value resulting from hedge ineffectiveness is immediately recognized as income or expense. | ||
We do not engage in speculative transactions or fair value hedging nor do we hold or issue derivative financial instruments for trading purposes | ||
Share-based Payments | ' | |
Share-based Payments | ||
We grant share-based awards, including restricted stock and options to purchase our common stock. Stock options are granted to employees and directors for a fixed number of shares with an exercise price equal to the fair value of the shares at the date of grant. Share-based compensation is recognized in the Consolidated Statements of Operations on a straight-line basis over the requisite service period. The amortization of share-based compensation reflects estimated forfeitures adjusted for actual forfeiture experience. As share-based compensation expense is recognized, a deferred tax asset is recorded that represents an estimate of the future tax deduction from the exercise of stock options or release of restrictions on the restricted stock. At the time share-based awards are exercised, cancelled, expire or restrictions lapse, we recognize adjustments to additional paid-in capital or income tax expense | ||
New Accounting Pronouncements | ' | |
New Accounting Pronouncements | ||
In February 2013, the FASB issued updated guidance to improve the reporting of reclassifications out of accumulated other comprehensive income. The guidance requires an entity to present, either on the face of the consolidated statement of operations or in the notes, separately for each component of comprehensive income, the current period reclassifications out of accumulated other comprehensive income by the respective line items of net income affected by the reclassification. The updated guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. Our adoption of this guidance in the first quarter of fiscal 2014 resulted in a change in the presentation of the Notes to the Consolidated Financial Statements and did not have any effect on our results of operations or financial position. | ||
In May 2014, the FASB issued updated guidance to clarify revenue recognition principles. This guidance is intended to improve disclosure requirements and enhance the comparability of revenue recognition practices. Improved disclosures under the amended guidance relate to the nature, amount, timing and uncertainty of revenue that is recognized from contracts with customers. This guidance will be effective for reporting periods beginning after December 15, 2016. We are currently evaluating the impact this new guidance will have on our Consolidated Financial Statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Components of inventories | ' | |||||||
The components of inventories as of June 28, 2014 and June 29, 2013 are as follows: | ||||||||
June 28, 2014 | June 29, 2013 | |||||||
Raw Materials | $ | 7,952 | $ | 11,583 | ||||
Work in Process | 1,279 | 1,846 | ||||||
Finished Goods | 29,192 | 44,156 | ||||||
New Inventories | 38,423 | 57,585 | ||||||
Merchandise In Service | 124,111 | 107,421 | ||||||
Total Inventories | $ | 162,534 | $ | 165,006 | ||||
Estimated useful lives of property, plant and equipment | ' | |||||||
Property, plant and equipment are carried at cost. Depreciation is generally computed using the straight-line method over the following estimated useful lives: | ||||||||
Life | ||||||||
(Years) | ||||||||
Automobiles and trucks | 3 to 8 | |||||||
Machinery and equipment | 3 to 10 | |||||||
Buildings | 20 to 33 | |||||||
Building improvements | 10 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill | ' | |||||||||||
Goodwill by segment is as follows: | ||||||||||||
United States | Canada | Total | ||||||||||
Balance as of June 30, 2012 | $ | 259,361 | $ | 65,975 | $ | 325,336 | ||||||
Acquisitions | 10,994 | — | 10,994 | |||||||||
Foreign currency translation and other | (49 | ) | (1,888 | ) | (1,937 | ) | ||||||
Balance as of June 29, 2013 | $ | 270,306 | $ | 64,087 | $ | 334,393 | ||||||
Foreign currency translation and other | (261 | ) | (918 | ) | (1,179 | ) | ||||||
Balance as of June 28, 2014 | $ | 270,045 | $ | 63,169 | $ | 333,214 | ||||||
Other Intangible Assets | ' | |||||||||||
Other intangible assets, which are included in "Other assets" on the Consolidated Balance Sheet, are as follows: | ||||||||||||
June 28, 2014 | June 29, 2013 | |||||||||||
Customer contracts and non-competition agreements | $ | 23,838 | $ | 125,996 | ||||||||
Accumulated amortization | (17,390 | ) | (117,149 | ) | ||||||||
Net | $ | 6,448 | $ | 8,847 | ||||||||
Estimated Amortization expenses | ' | |||||||||||
Estimated amortization expense for each of the next five fiscal years based on the intangible assets as of June 28, 2014 is as follows: | ||||||||||||
2015 | $ | 1,948 | ||||||||||
2016 | 1,393 | |||||||||||
2017 | 1,192 | |||||||||||
2018 | 410 | |||||||||||
2019 | 176 | |||||||||||
Thereafter | 1,329 | |||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Total amount of long-term debt | ' | |||||||
Debt as of June 28, 2014 and June 29, 2013 includes the following: | ||||||||
2014 | 2013 | |||||||
Borrowings under $250M Revolver | $ | 65,925 | $ | — | ||||
Borrowings under $75M Variable Rate Notes | 75,000 | 75,000 | ||||||
Borrowings under $50M A/R Line | 25,075 | — | ||||||
Borrowings under $100M Fixed Rate Notes | 100,000 | 100,000 | ||||||
Capital leases and other | 1,022 | 18 | ||||||
267,022 | 175,018 | |||||||
Less current maturities | (792 | ) | (18 | ) | ||||
Total long-term debt | $ | 266,230 | $ | 175,000 | ||||
Material covenants required by the terms of this facility | ' | |||||||
The following table illustrates compliance with the material covenants required by the terms of this facility as of June 28, 2014: | ||||||||
Required | Actual | |||||||
Maximum Leverage Ratio (Debt/EBITDA) | 3.5 | 2.16 | ||||||
Minimum Interest Coverage Ratio (EBITDA/Interest Expense) | 3 | 21.45 | ||||||
Minimum Net Worth | $ | 360,285 | $ | 374,044 | ||||
Payments Due on Long Term Debt Including Capital Leases | ' | |||||||
The following table summarizes payments due on long-term debt, including capital leases, as of June 28, 2014 for the next five fiscal years and thereafter: | ||||||||
2015 | $ | 792 | ||||||
2016 | 75,230 | |||||||
2017 | 91,000 | |||||||
2018 | — | |||||||
2019 and thereafter | 100,000 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||
The following tables summarize the assets and liabilities measured at fair value on a recurring basis as of June 28, 2014 and June 29, 2013: | ||||||||||||
As of June 28, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Other assets: | ||||||||||||
Money market mutual funds | $ | 3,309 | $ | — | $ | 3,309 | ||||||
Equity and fixed income mutual funds | 29,358 | — | 29,358 | |||||||||
Cash surrender value of life insurance policies | — | 14,287 | 14,287 | |||||||||
Total assets | $ | 32,667 | $ | 14,287 | $ | 46,954 | ||||||
Accrued expenses: | ||||||||||||
Derivative financial instruments | $ | — | $ | 930 | $ | 930 | ||||||
Total liabilities | $ | — | $ | 930 | $ | 930 | ||||||
As of June 29, 2013 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Other assets: | ||||||||||||
Money market mutual funds | $ | 2,964 | $ | — | $ | 2,964 | ||||||
Equity and fixed income mutual funds | 23,811 | — | 23,811 | |||||||||
Cash surrender value of life insurance policies | — | 13,377 | 13,377 | |||||||||
Total assets | $ | 26,775 | $ | 13,377 | $ | 40,152 | ||||||
Accrued expenses: | ||||||||||||
Derivative financial instruments | $ | — | $ | 1,136 | $ | 1,136 | ||||||
Total liabilities | $ | — | $ | 1,136 | $ | 1,136 | ||||||
Summary of assets and liabilities at fair value | ' | |||||||||||
The following tables summarize the fair value of assets and liabilities that are recorded at historical cost as of June 28, 2014 and June 29, 2013: | ||||||||||||
As of June 28, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 37,118 | $ | — | $ | 37,118 | ||||||
Total assets | $ | 37,118 | $ | — | $ | 37,118 | ||||||
Current maturities of long-term debt | $ | — | $ | 792 | $ | 792 | ||||||
Long-term debt, net of current maturities | — | 263,191 | 263,191 | |||||||||
Total liabilities | $ | — | $ | 263,983 | $ | 263,983 | ||||||
As of June 29, 2013 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 38,590 | $ | — | $ | 38,590 | ||||||
Total assets | $ | 38,590 | $ | — | $ | 38,590 | ||||||
Current maturities of long-term debt | $ | — | $ | 18 | $ | 18 | ||||||
Long-term debt, net of current maturities | — | 175,000 | 175,000 | |||||||||
Total liabilities | $ | — | $ | 175,018 | $ | 175,018 | ||||||
Other_Noncurrent_Liabilities_T
Other Noncurrent Liabilities (Tables) | 12 Months Ended | |||||||
Jun. 28, 2014 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ' | |||||||
Other Noncurrent Liabilities | ' | |||||||
Other noncurrent liabilities as of June 28, 2014 and June 29, 2013 included the following: | ||||||||
June 28, 2014 | June 29, 2013 | |||||||
Multi-employer pension withdrawal liability | $ | 28,516 | $ | 22,059 | ||||
Pension plan liability | 15,422 | 12,159 | ||||||
Executive deferred compensation plan liability | 30,584 | 26,775 | ||||||
Supplemental executive retirement plan liability | 16,814 | 14,826 | ||||||
Accrued income taxes | 12,043 | 9,726 | ||||||
Workers' compensation liability | 14,837 | 15,374 | ||||||
Other liabilities | 3,477 | 4,161 | ||||||
Total other noncurrent liabilities | $ | 121,693 | $ | 105,080 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Computation of Basic and Diluted Earnings per Share | ' | |||||||||||
For the Fiscal Years | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income from continuing operations | $ | 56,065 | $ | 50,506 | $ | 24,487 | ||||||
Less: Income allocable to participating securities | (610 | ) | (710 | ) | — | |||||||
Net income from continuing operations available to common stockholders | 55,455 | 49,796 | 24,487 | |||||||||
Net loss from discontinued operations | (8,393 | ) | (3,786 | ) | (340 | ) | ||||||
Net income available to common stockholders | $ | 47,062 | $ | 46,010 | $ | 24,147 | ||||||
Basic earnings per share (shares in thousands): | ||||||||||||
Weighted average shares outstanding, basic | 19,568 | 18,970 | 18,494 | |||||||||
Basic earnings (loss) per common share: | ||||||||||||
From continuing operations | $ | 2.83 | $ | 2.62 | $ | 1.32 | ||||||
From discontinued operations | $ | (0.43 | ) | $ | (0.20 | ) | $ | (0.02 | ) | |||
Basic earnings per share | $ | 2.41 | $ | 2.43 | $ | 1.31 | ||||||
Diluted earnings per share (shares in thousands): | ||||||||||||
Weighted average shares outstanding, basic | 19,568 | 18,970 | 18,494 | |||||||||
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options | 373 | 322 | 237 | |||||||||
Weighted average shares outstanding, diluted | 19,941 | 19,292 | 18,731 | |||||||||
Diluted earnings (loss) per common share: | ||||||||||||
From continuing operations | $ | 2.78 | $ | 2.58 | $ | 1.31 | ||||||
From discontinued operations | $ | (0.42 | ) | $ | (0.20 | ) | $ | (0.02 | ) | |||
Diluted earnings per share | $ | 2.36 | $ | 2.38 | $ | 1.29 | ||||||
Restructuring_and_Impairment_C1
Restructuring and Impairment Charges (Tables) | 12 Months Ended | ||||
Jun. 28, 2014 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Restructuring and Impairment Charges | ' | ||||
The following table identifies the major components of the fiscal year 2013 fourth quarter restructuring and impairment charges and the corresponding income statement line items: | |||||
Asset | Statement of Operations Classification: | Amount | |||
Inventory | Cost of rental and direct sale revenue | $ | 565 | ||
Property, plant and equipment | Selling and administrative | 1,714 | |||
Other costs | Selling and administrative | 882 | |||
Total restructuring and impairment charges | $ | 3,161 | |||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||||||
Summarized financial information for discontinued operations is shown below: | ||||||||||||
For the Fiscal Years | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Rental and direct sale revenue from discontinued operations | $ | 17,844 | $ | 41,710 | $ | 40,984 | ||||||
Loss before income taxes | (279 | ) | (5,982 | ) | (465 | ) | ||||||
Loss, net of tax | (141 | ) | (3,786 | ) | (340 | ) | ||||||
Loss on sale and other adjustments, net of tax | (8,252 | ) | — | — | ||||||||
Net loss from discontinued operations, net of tax | $ | (8,393 | ) | $ | (3,786 | ) | $ | (340 | ) | |||
For the Fiscal Year | ||||||||||||
2014 | ||||||||||||
Loss in excess of carrying value of Program Business | $ | (11,559 | ) | |||||||||
Transaction and related costs | (675 | ) | ||||||||||
Loss on sale of Program Business | (12,234 | ) | ||||||||||
Loss on sale of Ireland Business | (603 | ) | ||||||||||
Pretax loss on sale of businesses | (12,837 | ) | ||||||||||
Income tax benefit | 4,585 | |||||||||||
Loss on sale and other adjustments, net of tax | $ | (8,252 | ) | |||||||||
The carrying amount of the major classes of assets and liabilities related to the Program Business as of June 29, 2013 were as follows: | ||||||||||||
29-Jun-13 | ||||||||||||
Accounts receivable, net | $ | 4,557 | ||||||||||
Inventory | 16,591 | |||||||||||
Other current assets | 554 | |||||||||||
Total current assets | $ | 21,702 | ||||||||||
Accounts payable | $ | 964 | ||||||||||
Accrued expenses and other current liabilities | 2,982 | |||||||||||
Total current liabilities | $ | 3,946 | ||||||||||
There were no remaining balances at June 28, 2014. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Estimation of fair value using Black-Scholes option pricing model | ' | |||||||||||||||
For the Fiscal Years | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected share price volatility | 27.40% - 27.65% | 27.49% - 28.99% | 27.50% - 29.15% | |||||||||||||
Weighted average volatility | 27.52% | 28.34% | 28.46% | |||||||||||||
Expected dividend yield | 1.98% - 2.03% | 2.43% - 2.44% | 1.45% - 1.95% | |||||||||||||
Expected term (in years) | 6-May | 6-May | 6-May | |||||||||||||
Risk free rate | 1.63% - 2.03% | 0.62% - 0.92% | 0.82% - 1.27% | |||||||||||||
Summary of stock option activity under the plans | ' | |||||||||||||||
A summary of stock option activity under our plans as of June 28, 2014, and changes during the year then ended is presented below: | ||||||||||||||||
Shares | Weighted Average | Weighted Average | Aggregate | |||||||||||||
Exercise Prices | Remaining | Intrinsic Value | ||||||||||||||
Contractual Term | ||||||||||||||||
(in years) | ||||||||||||||||
Outstanding at June 29, 2013 | 1,051,633 | $ | 25.01 | |||||||||||||
Granted | 167,466 | 48.43 | ||||||||||||||
Exercised | (355,228 | ) | 24.63 | |||||||||||||
Forfeited or expired | (5,369 | ) | 28.32 | |||||||||||||
Outstanding at June 28, 2014 | 858,502 | $ | 24.86 | 6.49 | $ | 23,079 | ||||||||||
Exercisable at June 28, 2014 | 507,264 | $ | 18.01 | 5.13 | $ | 17,108 | ||||||||||
Summary of status of non-vested shares of restricted stock | ' | |||||||||||||||
A summary of the status of our non-vested shares of restricted stock as of June 28, 2014 and changes during the year ended June 28, 2014, is presented below: | ||||||||||||||||
Shares | Weighted-Average | |||||||||||||||
Grant-Date Fair Value | ||||||||||||||||
Non-vested at June 29, 2013 | 301,995 | $ | 27.23 | |||||||||||||
Granted | 113,162 | 54.7 | ||||||||||||||
Vested | (102,313 | ) | 26.94 | |||||||||||||
Forfeited | (8,041 | ) | 29.21 | |||||||||||||
Non-vested at June 28, 2014 | 304,803 | $ | 37.48 | |||||||||||||
Components of accumulated other comprehensive Income | ' | |||||||||||||||
The components of accumulated other comprehensive income, net of tax, are as follows: | ||||||||||||||||
For the Fiscal Years | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Foreign currency translation | $ | 22,682 | $ | 24,093 | $ | 30,552 | ||||||||||
Pension benefit liabilities | (19,748 | ) | (15,650 | ) | (27,759 | ) | ||||||||||
Derivative financial instruments | 1,053 | 946 | (898 | ) | ||||||||||||
Accumulated other comprehensive income | $ | 3,987 | $ | 9,389 | $ | 1,895 | ||||||||||
Changes in accumulated other comprehensive income were as follows: | ||||||||||||||||
For the Fiscal Year Ended June 28, 2014 | ||||||||||||||||
Foreign currency translation adjustment | Pension benefit liabilities | Derivative financial instruments | Total | |||||||||||||
Accumulated other comprehensive income (loss) as of June 29, 2013 | $ | 24,093 | $ | (15,650 | ) | $ | 946 | $ | 9,389 | |||||||
Other comprehensive income (loss) before reclassifications | (1,411 | ) | (5,230 | ) | (224 | ) | (6,865 | ) | ||||||||
Reclassifications from net accumulated other comprehensive income | — | 1,132 | 331 | 1,463 | ||||||||||||
Net current period other comprehensive income (loss) | (1,411 | ) | (4,098 | ) | 107 | (5,402 | ) | |||||||||
Accumulated other comprehensive income (loss) at June 28, 2014 | $ | 22,682 | $ | (19,748 | ) | $ | 1,053 | $ | 3,987 | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income for fiscal year 2014 were as follows: | ||||||||||||||||
For the Fiscal Year | ||||||||||||||||
2014 | ||||||||||||||||
Losses on derivative financial instruments: | ||||||||||||||||
Interest rate swap contracts | $ | 533 | (a) | |||||||||||||
Tax benefit | (202 | ) | ||||||||||||||
Total, net of tax | 331 | |||||||||||||||
Pension benefit liabilities: | ||||||||||||||||
Amortization of net loss | 1,813 | (b) | ||||||||||||||
Tax benefit | (681 | ) | ||||||||||||||
Total, net of tax | 1,132 | |||||||||||||||
Total amounts reclassified, net of tax | $ | 1,463 | ||||||||||||||
(a) Included in interest expense. | ||||||||||||||||
(b) Included in the computation of net periodic pension cost, which is included in cost of rental and direct sale revenue and selling and administrative. This amount includes a pension plan which is not included in the net periodic pension cost in Note 13 because it is individually immaterial. See Note 13 for details regarding the pension plans. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jun. 28, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of the provision for income taxes | ' | |||||||||||
The components of the provision for income taxes from continuing operations are as follows: | ||||||||||||
Fiscal Years | 2014 | 2013 | 2012 | |||||||||
Current: | ||||||||||||
Federal | $ | 10,723 | $ | 15,646 | $ | 3,266 | ||||||
State and local | 844 | 3,687 | 1,204 | |||||||||
Foreign | 5,283 | 5,653 | 4,856 | |||||||||
16,850 | 24,986 | 9,326 | ||||||||||
Deferred | 16,880 | 3,660 | 2,845 | |||||||||
Provision for income taxes from continuing operations | $ | 33,730 | $ | 28,646 | $ | 12,171 | ||||||
Reconciliation of the United States statutory income tax rate with our effective income tax rate | ' | |||||||||||
The following table reconciles the United States statutory income tax rate with our effective income tax rate from continuing operations: | ||||||||||||
Fiscal Years | 2014 | 2013 | 2012 | |||||||||
United States statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State taxes, net of federal tax benefit | 3 | 3.7 | 2.8 | |||||||||
Foreign earnings taxed at different rates | — | (0.3 | ) | (2.8 | ) | |||||||
Change in uncertain tax position reserve | — | (1.6 | ) | 2.7 | ||||||||
Share-based compensation | — | — | 0.1 | |||||||||
Disposition of subsidiary | — | — | (3.8 | ) | ||||||||
Permanent differences and other, net | (0.4 | ) | (0.6 | ) | (0.8 | ) | ||||||
Effective income tax rate from continuing operations | 37.6 | % | 36.2 | % | 33.2 | % | ||||||
Tax effects of temporary differences that give rise to deferred tax assets and liabilities | ' | |||||||||||
The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: | ||||||||||||
Fiscal Years | 2014 | 2013 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Inventory | $ | (40,781 | ) | $ | (18,190 | ) | ||||||
Depreciation | (9,815 | ) | (18,819 | ) | ||||||||
Intangibles | (52,889 | ) | (44,757 | ) | ||||||||
Derivative financial instruments | (627 | ) | (563 | ) | ||||||||
Other | (2,606 | ) | (2,707 | ) | ||||||||
Total deferred tax liabilities | (106,718 | ) | (85,036 | ) | ||||||||
Deferred tax assets: | ||||||||||||
Compensation and employees benefits | 50,024 | 44,577 | ||||||||||
Accruals and reserves | 7,618 | 9,208 | ||||||||||
Share-based payments | 3,864 | 3,778 | ||||||||||
Net operating loss | 7,156 | 6,566 | ||||||||||
Other | 1,968 | 604 | ||||||||||
Gross deferred tax assets | 70,630 | 64,733 | ||||||||||
Less valuation allowance | (6,762 | ) | (5,753 | ) | ||||||||
Total deferred tax assets | 63,868 | 58,980 | ||||||||||
Net deferred tax liabilities | $ | (42,850 | ) | $ | (26,056 | ) | ||||||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
Fiscal Years | 2014 | 2013 | ||||||||||
Beginning balance | $ | 9,338 | $ | 11,328 | ||||||||
Tax positions related to current year: | ||||||||||||
Gross increase | 1,196 | 1,550 | ||||||||||
Gross decrease | — | — | ||||||||||
Tax positions related to prior years: | ||||||||||||
Gross increase | 1,090 | 170 | ||||||||||
Gross decrease | (152 | ) | (161 | ) | ||||||||
Settlements | (114 | ) | (2,147 | ) | ||||||||
Lapses in statutes of limitations | (532 | ) | (1,402 | ) | ||||||||
Ending balance | $ | 10,826 | $ | 9,338 | ||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jun. 28, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Obligations and Funded Status | ' | |||||||||||||||||||||||
Obligations and Funded Status at June 28, 2014 and June 29, 2013 | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Projected benefit obligation, beginning of year | $ | 76,758 | $ | 88,029 | $ | 15,548 | $ | 17,576 | ||||||||||||||||
Interest cost | 3,968 | 3,738 | 758 | 688 | ||||||||||||||||||||
Actuarial loss/(gain) | 12,799 | (12,852 | ) | 2,138 | (2,057 | ) | ||||||||||||||||||
Benefits paid | (2,274 | ) | (2,157 | ) | (834 | ) | (659 | ) | ||||||||||||||||
Projected benefit obligation, end of year | $ | 91,251 | $ | 76,758 | $ | 17,610 | $ | 15,548 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 64,599 | $ | 53,792 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 11,240 | 4,881 | — | — | ||||||||||||||||||||
Employer contributions | 2,420 | 8,083 | 834 | 659 | ||||||||||||||||||||
Benefits paid | (2,274 | ) | (2,157 | ) | (834 | ) | (659 | ) | ||||||||||||||||
Fair value of plan assets, end of year | $ | 75,985 | $ | 64,599 | $ | — | $ | — | ||||||||||||||||
Funded status-net amount recognized | $ | (15,266 | ) | $ | (12,159 | ) | $ | (17,610 | ) | $ | (15,548 | ) | ||||||||||||
Amounts recognized in the Consolidated Balance Sheets | ' | |||||||||||||||||||||||
Amounts recognized in the Consolidated Balance Sheets consist of: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Accrued benefit liability | $ | (15,266 | ) | $ | (12,159 | ) | $ | (17,610 | ) | $ | (15,548 | ) | ||||||||||||
Net amount recognized | $ | (15,266 | ) | $ | (12,159 | ) | $ | (17,610 | ) | $ | (15,548 | ) | ||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Accumulated other comprehensive loss/(gain) related to: | ||||||||||||||||||||||||
Unrecognized net actuarial losses/(gains) | $ | 4,560 | $ | (16,817 | ) | $ | 1,995 | $ | (2,458 | ) | ||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Interest cost | $ | 3,968 | $ | 3,738 | $ | 3,807 | $ | 758 | $ | 688 | $ | 774 | ||||||||||||
Expected return on assets | (4,638 | ) | (4,227 | ) | (3,905 | ) | — | — | — | |||||||||||||||
Amortization of net loss | 1,636 | 3,312 | 1,482 | 143 | 401 | 92 | ||||||||||||||||||
Net periodic benefit cost | $ | 966 | $ | 2,823 | $ | 1,384 | $ | 901 | $ | 1,089 | $ | 866 | ||||||||||||
Weighted average assumptions used to determine benefit obligations | ' | |||||||||||||||||||||||
The following weighted average assumptions were used to determine benefit obligations for the plans at June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 4.5 | % | 5.25 | % | 4.3 | % | 5 | % | ||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||||||
The following weighted average assumptions were used to determine net periodic benefit cost for the plans for the years ended June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Discount rate | 5.25 | % | 4.3 | % | 5 | % | 4 | % | ||||||||||||||||
Expected return on plan assets | 7.25 | 7.5 | N/A | N/A | ||||||||||||||||||||
Rate of compensation increase | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Asset allocations in the pension plan | ' | |||||||||||||||||||||||
The asset allocations in the pension plan at June 28, 2014 and June 29, 2013 are as follows: | ||||||||||||||||||||||||
Target Asset | Actual Asset | |||||||||||||||||||||||
Allocations | Allocations | |||||||||||||||||||||||
2014 | 2014 | 2013 | ||||||||||||||||||||||
International equity | 8 | % | 6.8 | % | 13.6 | % | ||||||||||||||||||
Large cap equity | 26 | 25.9 | 31.2 | |||||||||||||||||||||
Small cap equity | 5 | 4.8 | 8.1 | |||||||||||||||||||||
Absolute return strategy funds | 16 | 15.3 | 15.8 | |||||||||||||||||||||
Fixed income | 45 | 47 | 22.9 | |||||||||||||||||||||
Long/short equity fund | — | 0.2 | 8.4 | |||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | ||||||||||||||||||
Pension plan investments using the fair value hierarchy | ' | |||||||||||||||||||||||
The following table presents the pension plan investments using the fair value hierarchy discussed in Note 5, "Fair Value Measurements" of the Notes to the Consolidated Financial Statements, as of June 28, 2014: | ||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Interest-bearing cash | $ | 1,688 | $ | — | $ | — | $ | 1,688 | ||||||||||||||||
Receivables | 243 | — | — | 243 | ||||||||||||||||||||
Common/collective trusts | — | 3,611 | 167 | 3,778 | ||||||||||||||||||||
U.S. Government securities | 5,465 | 1,435 | — | 6,900 | ||||||||||||||||||||
Corporate debt | — | 27,065 | — | 27,065 | ||||||||||||||||||||
Registered investment companies | 36,311 | — | — | 36,311 | ||||||||||||||||||||
Total | $ | 43,707 | $ | 32,111 | $ | 167 | $ | 75,985 | ||||||||||||||||
The following table presents the pension plan investments using the fair value hierarchy discussed in Note 5, "Fair Value Measurements" of the Notes to the Consolidated Financial Statements, as of June 29, 2013: | ||||||||||||||||||||||||
Quoted Prices | Significant | Significant | Total | |||||||||||||||||||||
in Active | Other | Unobservable | ||||||||||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||
Interest-bearing cash | $ | 776 | $ | — | $ | — | $ | 776 | ||||||||||||||||
Receivable from common/collective trusts | 1,744 | — | — | 1,744 | ||||||||||||||||||||
Common stock | — | — | — | — | ||||||||||||||||||||
Common/collective trusts | — | 5,244 | 4,093 | 9,337 | ||||||||||||||||||||
Registered investment companies | 52,742 | — | — | 52,742 | ||||||||||||||||||||
Total | $ | 55,262 | $ | 5,244 | $ | 4,093 | $ | 64,599 | ||||||||||||||||
Reconciliation of Level 3 assets | ' | |||||||||||||||||||||||
The following table presents a reconciliation of Level 3 assets held during the years ended June 28, 2014 and June 29, 2013: | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Balance at beginning of the year | $ | 4,093 | $ | 12,132 | ||||||||||||||||||||
Realized gains | (828 | ) | (708 | ) | ||||||||||||||||||||
Net unrealized gains | 217 | 736 | ||||||||||||||||||||||
Net purchases, issuances and settlements | (3,315 | ) | (8,067 | ) | ||||||||||||||||||||
Balance at end of the year | $ | 167 | $ | 4,093 | ||||||||||||||||||||
Benefit payments, reflecting expected future service | ' | |||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||||||
Pension Plan | SERP | |||||||||||||||||||||||
2015 | $ | 2,358 | $ | 795 | ||||||||||||||||||||
2016 | 2,515 | 820 | ||||||||||||||||||||||
2017 | 2,739 | 868 | ||||||||||||||||||||||
2018 | 3,022 | 940 | ||||||||||||||||||||||
2019 | 3,295 | 986 | ||||||||||||||||||||||
2020 to 2024 | 20,556 | 5,413 | ||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Jun. 28, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future minimum base rental payments for operating leases | ' | |||
The following is a schedule as of June 28, 2014 of future minimum base rental payments for operating leases that had initial or remaining lease terms in excess of one year: | ||||
Operating Leases | ||||
2015 | $ | 22,326 | ||
2016 | 18,621 | |||
2017 | 14,705 | |||
2018 | 9,782 | |||
2019 | 7,641 | |||
2020 to 2024 | 11,127 | |||
Total minimum lease payments | $ | 84,202 | ||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Jun. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Financial information by segment | ' | |||||||||||||||
Financial information by segment is as follows: | ||||||||||||||||
United | Canada | Elimination | Total | |||||||||||||
States | ||||||||||||||||
2014 | ||||||||||||||||
Revenues | $ | 752,802 | $ | 148,067 | $ | — | $ | 900,869 | ||||||||
Income from continuing operations | 79,290 | 16,825 | — | 96,115 | ||||||||||||
Interest expense | 6,320 | — | — | 6,320 | ||||||||||||
Total assets | 859,474 | 170,775 | (106,730 | ) | 923,519 | |||||||||||
Capital expenditures-net | 29,053 | 3,723 | — | 32,776 | ||||||||||||
Depreciation and amortization expense | 26,743 | 4,134 | — | 30,877 | ||||||||||||
Provision for income taxes | 28,684 | 5,046 | — | 33,730 | ||||||||||||
2013 | ||||||||||||||||
Revenues | $ | 711,172 | $ | 154,846 | $ | — | $ | 866,018 | ||||||||
Income from continuing operations | 66,144 | 17,861 | — | 84,005 | ||||||||||||
Interest expense | 4,853 | — | — | 4,853 | ||||||||||||
Total assets | 831,860 | 161,675 | (96,249 | ) | 897,286 | |||||||||||
Capital expenditures-net | 31,113 | 4,411 | — | 35,524 | ||||||||||||
Depreciation and amortization expense | 27,050 | 5,125 | — | 32,175 | ||||||||||||
Provision for income taxes | 24,342 | 4,304 | — | 28,646 | ||||||||||||
2012 | ||||||||||||||||
Revenues | $ | 678,178 | $ | 150,775 | $ | — | $ | 828,953 | ||||||||
Income from continuing operations | 26,592 | 16,114 | — | 42,706 | ||||||||||||
Interest expense | 6,048 | — | — | 6,048 | ||||||||||||
Total assets | 803,388 | 151,783 | (81,440 | ) | 873,731 | |||||||||||
Capital expenditures-net | 26,056 | 7,970 | — | 34,026 | ||||||||||||
Depreciation and amortization expense | 28,738 | 5,245 | — | 33,983 | ||||||||||||
Provision for income taxes | 2,494 | 9,677 | — | 12,171 | ||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 15 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Jun. 29, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 28, 2014 |
Segment | ||||||
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 2 | ' | ' | ' |
Effect of change in inventory lives on income from operations | ' | ' | $6,136 | $2,605 | ' | ' |
Effect of change in inventory lives on net income | ' | ' | 3,867 | 1,655 | ' | ' |
Effect of change in inventory lives on earnings per share | ' | ' | $0.19 | $0.09 | ' | ' |
Effect of change in inventory lives on Consolidated Balance Sheet | ' | 2,605 | ' | ' | ' | 8,741 |
Depreciation expense | ' | ' | 28,220 | 28,112 | 29,014 | ' |
Estimated average life of an account (in years) | ' | ' | '11 years | ' | ' | ' |
Number of reportable segment | ' | ' | 2 | ' | ' | ' |
Goodwill | ' | 334,393 | 333,214 | 334,393 | 325,336 | 333,214 |
Goodwill impairment loss related to divestiture | 261 | ' | ' | ' | ' | ' |
Impairment of intangible assets | ' | ' | ' | 0 | 0 | ' |
U.S. Rental Operations | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 270,045 | ' | ' | 270,045 |
Canadian Rental Operations | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 63,169 | ' | ' | 63,169 |
2013 Restructuring Plan [Member] | Customer Contracts [Member] | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Impairment of intangible assets | ' | 1,626 | ' | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated lives of rental merchandise | ' | ' | '6 months | ' | ' | ' |
Deductibles related to insurance policies | ' | ' | 350 | ' | ' | ' |
Minimum [Member] | Noncompete Agreements | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated average life of an account (in years) | ' | ' | '5 years | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated lives of rental merchandise | ' | ' | '4 years | ' | ' | ' |
Deductibles related to insurance policies | ' | ' | $750 | ' | ' | ' |
Maximum [Member] | Noncompete Agreements | ' | ' | ' | ' | ' | ' |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated average life of an account (in years) | ' | ' | '20 years | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Inventories (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Components of inventories | ' | ' |
Raw Materials | $7,952 | $11,583 |
Work in Process | 1,279 | 1,846 |
Finished Goods | 29,192 | 44,156 |
New Inventories | 38,423 | 57,585 |
Merchandise In Service | 124,111 | 107,421 |
Total Inventories | $162,534 | $165,006 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) | 12 Months Ended |
Jun. 28, 2014 | |
Building improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '10 years |
Maximum [Member] | Automobiles and trucks | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '8 years |
Maximum [Member] | Machinery and equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '10 years |
Maximum [Member] | Buildings | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '33 years |
Minimum [Member] | Automobiles and trucks | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Minimum [Member] | Machinery and equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '3 years |
Minimum [Member] | Buildings | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life | '20 years |
Acquisitions_Additional_Inform
Acquisitions Additional Information (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Markets | ||
Business Acquisition [Line Items] | ' | ' |
Acquisition North American markets | 5 | ' |
Top North American markets | 100 | ' |
Cash paid for acquisition | $18,488 | ' |
Amount of revenue related to acquired business | $10,000 | $5,831 |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Jun. 28, 2014 | Jun. 29, 2013 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill impairment loss related to divestiture | $261 | ' | ' |
Goodwill impairment loss | ' | 0 | 0 |
Goodwill [Roll Forward] | ' | ' | ' |
Beginning Balance | ' | 334,393 | 325,336 |
Acquisitions | ' | ' | 10,994 |
Foreign currency translation and other | ' | -1,179 | -1,937 |
Ending Balance | ' | 333,214 | 334,393 |
United States | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Beginning Balance | ' | 270,306 | 259,361 |
Acquisitions | ' | ' | 10,994 |
Foreign currency translation and other | ' | -261 | -49 |
Ending Balance | ' | 270,045 | 270,306 |
Canada | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Beginning Balance | ' | 64,087 | 65,975 |
Acquisitions | ' | ' | 0 |
Foreign currency translation and other | ' | -918 | -1,888 |
Ending Balance | ' | $63,169 | $64,087 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Other intangible assets | ' | ' |
Customer contracts and non-competition agreements | $23,838 | $125,996 |
Accumulated amortization | -17,390 | -117,149 |
Net | $6,448 | $8,847 |
Weighted average life of amortized intangible assets (in years) | '11 years | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets Estimated Amortization Expenses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $2,657 | $4,063 | $4,968 |
Estimated Future Amortization expenses | ' | ' | ' |
2014 | 1,948 | ' | ' |
2015 | 1,393 | ' | ' |
2016 | 1,192 | ' | ' |
2017 | 410 | ' | ' |
2018 | 176 | ' | ' |
Thereafter | $1,329 | ' | ' |
LongTerm_Debt_Additional_Infor
Long-Term Debt Additional Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Mar. 07, 2012 |
Unsecured Private Placement Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
LIBOR | 'The notes bear interest at 0.60% over LIBOR | ' | ' |
Debt Instrument, Frequency of Periodic Payment | 'The notes do not require principal payments until maturity | ' | ' |
Unsecured Private Placement Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate spread on notes | 0.60% | ' | ' |
Unsecured private placement notes maturity date | 30-Jun-15 | ' | ' |
Notes Payable | $75,000 | $75,000 | ' |
Long-term debt, notes | 75,000 | ' | ' |
Interest rate | 0.83% | ' | ' |
Senior Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Notes payable, outstanding balance | 100,000 | 100,000 | ' |
Long-term debt, notes | 100,000 | ' | ' |
Interest rate | 3.81% | ' | ' |
Senior Notes [Member] | Unsecured Senior Notes 1 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Unsecured private placement notes maturity date | 15-Apr-23 | ' | ' |
Long-term debt, notes | 50,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.73% | ' | ' |
Senior Notes [Member] | Unsecured Senior Notes 2 | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Unsecured private placement notes maturity date | 15-Apr-25 | ' | ' |
Long-term debt, notes | 50,000 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | ' | ' |
Unsecured Revolving Credit Facility | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Revolving credit facility | ' | ' | 250,000 |
Debt facility expiration date | 7-Mar-17 | ' | ' |
Borrowings outstanding under the revolving credit facility | 65,925 | 0 | ' |
Letter of credit Sublimit | 50,000 | ' | ' |
Outstanding letters of credit | 636 | ' | ' |
Fee payment on unused credit balances, percentage | 0.20% | ' | ' |
Interest rate | 1.47% | ' | ' |
Interest rate description | 'Borrowings in U.S. dollars under this credit facility generally bear interest at the adjusted London Interbank Offered Rate ("LIBOR") for specified interest periods plus a margin, which can range from 1.00% to 2.00%, depending on our consolidated leverage ratio. | ' | ' |
Secured Debt [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Revolving credit facility | 50,000 | ' | ' |
Interest rate spread on notes | 0.75% | ' | ' |
Interest rate on letters of credit outstanding | 0.80% | ' | ' |
Borrowings outstanding under the revolving credit facility | 25,075 | 0 | ' |
Outstanding letters of credit | $24,925 | ' | ' |
Fee payment on unused credit balances, percentage | 0.26% | ' | ' |
Secured Revolving Credit Facility | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt facility expiration date | 27-Sep-16 | ' | ' |
Interest rate | 0.90% | ' | ' |
Interest rate description | 'We pay interest at a rate per annum equal to LIBOR plus a margin of 0.75% | ' | ' |
Maximum [Member] | Unsecured Revolving Credit Facility | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate spread on notes | 2.00% | ' | ' |
Minimum [Member] | Unsecured Revolving Credit Facility | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Interest rate spread on notes | 1.00% | ' | ' |
LongTerm_Debt_Total_Amount_of_
Long-Term Debt Total Amount of Long-Term Debt (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt and Capital Lease Obligations | ' | ' |
Capital leases and other | $1,022 | $18 |
Long-term Debt including current maturities | 267,022 | 175,018 |
Less current maturities | -792 | -18 |
Total long-term debt | 266,230 | 175,000 |
Unsecured Revolving Credit Facility | ' | ' |
Long-term Debt and Capital Lease Obligations | ' | ' |
Borrowings under $250M Revolver | 65,925 | 0 |
Secured Debt [Member] | ' | ' |
Long-term Debt and Capital Lease Obligations | ' | ' |
Borrowings under $250M Revolver | 25,075 | 0 |
Unsecured Private Placement Notes [Member] | ' | ' |
Long-term Debt and Capital Lease Obligations | ' | ' |
Borrowings under $75M Variable Rate Notes | 75,000 | 75,000 |
Senior Notes [Member] | ' | ' |
Long-term Debt and Capital Lease Obligations | ' | ' |
Borrowings under $100M Fixed Rate Notes | $100,000 | $100,000 |
Material_Covenants_Details
Material Covenants (Details) (Unsecured Revolving Credit Facility, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 28, 2014 |
Unsecured Revolving Credit Facility | ' |
Material covenants required by the terms of this facility | ' |
Maximum Leverage Ratio (Debt/EBITDA), Required | 3.5 |
Minimum Interest Coverage Ratio (EBITDA/Interest Expense), Required | 3 |
Minimum Net Worth, Required | $360,285 |
Maximum Leverage Ratio (Debt/EBITDA), Actual | 2.16 |
Minimum Interest Coverage Ratio (EBITDA/Interest Expense), Actual | 21.45 |
Minimum Net Worth, Actual | $374,044 |
LongTerm_Debt_Future_Payments_
Long-Term Debt Future Payments (Details) (USD $) | Jun. 28, 2014 |
In Thousands, unless otherwise specified | |
Payments Due on Long Term Debt Including Capital Leases | ' |
2015 | $792 |
2016 | 75,230 |
2017 | 91,000 |
2018 | 0 |
2019 and thereafter | $100,000 |
Fair_Value_Measurements_Assets
Fair Value Measurements Assets and Liabilities on Recurring Basis (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Total assets | $37,118 | $38,590 |
Liabilities: | ' | ' |
Total liabilities | 263,983 | 175,018 |
Fair Value, Measurements, Recurring | ' | ' |
Assets: | ' | ' |
Money market mutual funds | 3,309 | 2,964 |
Equity and fixed income mutual funds | 29,358 | 23,811 |
Cash surrender value of life insurance policies | 14,287 | 13,377 |
Total assets | 46,954 | 40,152 |
Liabilities: | ' | ' |
Derivative financial instruments | 930 | 1,136 |
Total liabilities | 930 | 1,136 |
Level 1 | ' | ' |
Assets: | ' | ' |
Total assets | 37,118 | 38,590 |
Liabilities: | ' | ' |
Total liabilities | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | ' | ' |
Assets: | ' | ' |
Money market mutual funds | 3,309 | 2,964 |
Equity and fixed income mutual funds | 29,358 | 23,811 |
Cash surrender value of life insurance policies | 0 | 0 |
Total assets | 32,667 | 26,775 |
Liabilities: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ' | ' |
Assets: | ' | ' |
Total assets | 0 | 0 |
Liabilities: | ' | ' |
Total liabilities | 263,983 | 175,018 |
Level 2 | Fair Value, Measurements, Recurring | ' | ' |
Assets: | ' | ' |
Money market mutual funds | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Cash surrender value of life insurance policies | 14,287 | 13,377 |
Total assets | 14,287 | 13,377 |
Liabilities: | ' | ' |
Derivative financial instruments | 930 | 1,136 |
Total liabilities | $930 | $1,136 |
Fair_Value_Measurements_Assets1
Fair Value Measurements Assets and Liabilities (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $37,118 | $38,590 |
Total assets | 37,118 | 38,590 |
LIABILITIES | ' | ' |
Current maturities of long-term debt | 792 | 18 |
Long-Term Debt, net of Current Maturities | 263,191 | 175,000 |
Total liabilities | 263,983 | 175,018 |
Level 1 | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 37,118 | 38,590 |
Total assets | 37,118 | 38,590 |
LIABILITIES | ' | ' |
Current maturities of long-term debt | 0 | 0 |
Long-Term Debt, net of Current Maturities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
LIABILITIES | ' | ' |
Current maturities of long-term debt | 792 | 18 |
Long-Term Debt, net of Current Maturities | 263,191 | 175,000 |
Total liabilities | $263,983 | $175,018 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | Maximum [Member] | Minimum [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | |||
Other Accrued Expenses | Other Accrued Expenses | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Outstanding Variable Rate Debt Modified | 45.00% | ' | ' | ' | ' | ' | ' | ' |
Derivative financial instruments | ' | ' | ' | ' | ' | ' | $930 | $1,136 |
Net loss deferred in accumulated other comprehensive income | 1,053 | 946 | -898 | ' | ' | 1,053 | ' | ' |
Loss expected to be reclassified to interest expense | ' | ' | ' | ' | ' | 319 | ' | ' |
Maturity period of interest rate swap contracts | ' | ' | ' | '24 months | '13 months | ' | ' | ' |
Notional amount of interest rate swap contracts to pay fixed rates of interest and to receive variable rates of interest | ' | ' | ' | ' | ' | $75,000 | ' | ' |
Average rate on interest rate swap contracts | ' | ' | ' | ' | ' | 1.25% | ' | ' |
Other_Noncurrent_Liabilities_D
Other Noncurrent Liabilities (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Noncurrent [Abstract] | ' | ' |
Multi-employer pension withdrawal liability | $28,516 | $22,059 |
Pension plan liability | 15,422 | 12,159 |
Executive deferred compensation plan liability | 30,584 | 26,775 |
Supplemental executive retirement plan liability | 16,814 | 14,826 |
Accrued income taxes | 12,043 | 9,726 |
Workers' compensation liability | 14,837 | 15,374 |
Other liabilities | 3,477 | 4,161 |
Total other noncurrent liabilities | $121,693 | $105,080 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' |
Net income from continuing operations | $56,065 | $50,506 | $24,487 |
Less: Income allocable to participating securities | -610 | -710 | 0 |
Net Income from continuing operations available to common stockholders | 55,455 | 49,796 | 24,487 |
Net loss from discontinued operations | -8,393 | -3,786 | -340 |
Net income available to common stockholders | $47,062 | $46,010 | $24,147 |
Weighted average shares outstanding, basic | 19,568,000 | 18,970,000 | 18,494,000 |
Basic earnings per common share, from continuing operations (in dollars per share) | $2.83 | $2.62 | $1.32 |
Basic earnings (loss) per common share, from discontinued operations (in dollars per share) | ($0.43) | ($0.20) | ($0.02) |
Basic earnings per share | $2.41 | $2.43 | $1.31 |
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options | 373,000 | 322,000 | 237,000 |
Weighted average shares outstanding, diluted | 19,941,000 | 19,292,000 | 18,731,000 |
Diluted earnings per common share, from continuing operations (in dollars per share) | $2.78 | $2.58 | $1.31 |
Diluted earnings (loss) per common share, discontinued operations (in dollars per share) | ($0.42) | ($0.20) | ($0.02) |
Diluted earnings per share | $2.36 | $2.38 | $1.29 |
Antidilutive securities excluded from computation of earnings per share (shares) | 88,000 | 99,000 | 498,000 |
Restructuring_and_Impairment_C2
Restructuring and Impairment Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 29, 2013 | Jun. 29, 2013 | Jun. 29, 2013 | Jun. 29, 2013 | Jun. 29, 2013 |
Facility Closing | 2013 Restructuring Plan [Member] | 2013 Restructuring Plan [Member] | 2013 Restructuring Plan [Member] | 2013 Restructuring Plan [Member] | |
Facility | Selling, General and Administrative Expenses [Member] | Inventory [Member] | Property, Plant and Equipment, Other Types [Member] | ||
Cost of Sales [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Number of facilities closed or divested during the period | 1 | ' | ' | ' | ' |
Restructuring charges | ' | $3,161 | $882 | $565 | $1,714 |
Restructuring_and_Impairment_C3
Restructuring and Impairment Charges Components of Restructuring and Impairment Charges (Details) (2013 Restructuring Plan [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 29, 2013 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring Charges | $3,161 |
Selling, General and Administrative Expenses [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring Charges | 882 |
Inventory [Member] | Cost of Sales [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring Charges | 565 |
Property, Plant and Equipment, Other Types [Member] | Selling, General and Administrative Expenses [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring Charges | $1,714 |
Discontinued_Operations_Additi
Discontinued Operations Additional Information (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2014 | Jun. 28, 2014 | Dec. 28, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Dec. 28, 2013 | Jun. 28, 2014 |
Program Business [Member] | Program Business [Member] | Program Business [Member] | Ireland Business [Member] | Ireland Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Divestiture of Businesses | $6,641 | ' | ' | ' | ' | ' | ' |
Pretax loss on sale of businesses | ' | -12,837 | -12,319 | -12,234 | ' | -603 | -603 |
Impairment of Long-Lived Assets to be Disposed of | ' | ' | ' | ' | 3,601 | ' | ' |
Inventory Adjustments | ' | ' | ' | ' | 3,046 | ' | ' |
Professional Fees | ' | ' | ' | ' | $25 | ' | ' |
Discontinued_Operations_Financ
Discontinued Operations Financial Information (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Dec. 28, 2013 | Jun. 28, 2014 | Jun. 29, 2013 | Dec. 28, 2013 | Jun. 28, 2014 |
Program Business [Member] | Program Business [Member] | Program Business [Member] | Ireland Business [Member] | Ireland Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Rental and direct sale revenue from discontinued operations | $17,844 | $41,710 | $40,984 | ' | ' | ' | ' | ' |
Loss before income taxes | -279 | -5,982 | -465 | ' | ' | ' | ' | ' |
Loss, net of tax | -141 | -3,786 | -340 | ' | ' | ' | ' | ' |
Loss on sale and other adjustments, net of tax | -8,252 | 0 | 0 | ' | ' | ' | ' | ' |
Net loss from discontinued operations, net of tax | -8,393 | -3,786 | -340 | ' | ' | ' | ' | ' |
Loss in excess of carrying value of Program Business | ' | ' | ' | ' | -11,559 | ' | ' | ' |
Transaction and related costs | ' | ' | ' | ' | -675 | ' | ' | ' |
Pretax loss on sale of businesses | -12,837 | ' | ' | -12,319 | -12,234 | ' | -603 | -603 |
Income tax benefit | 4,585 | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable, net | ' | ' | ' | ' | ' | 4,557 | ' | ' |
Inventory | ' | ' | ' | ' | ' | 16,591 | ' | ' |
Other current assets | ' | ' | ' | ' | ' | 554 | ' | ' |
Total current assets | ' | ' | ' | ' | ' | 21,702 | ' | ' |
Accounts payable | ' | ' | ' | ' | ' | 964 | ' | ' |
Accrued expenses and other current liabilities | ' | ' | ' | ' | ' | 2,982 | ' | ' |
Total current liabilities | ' | ' | ' | ' | ' | $3,946 | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Apr. 03, 2012 | 31-May-08 | 31-May-07 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Nov. 06, 2013 | Aug. 23, 2012 | Aug. 23, 2012 | Aug. 23, 2012 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Jun. 28, 2014 | Nov. 06, 2013 | Nov. 04, 2010 | Nov. 06, 2013 |
Maximum [Member] | Minimum [Member] | Target [Member] | Stock Options | Stock Options | Stock Options | Restricted Stock | Restated Plan | 2006 Plan | 2010 Plan [Member] | ||||||||
Maximum [Member] | Minimum [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized share repurchase program value | ' | $175,000 | $100,000 | $175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | ' | ' | ' | 204,819 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Repurchase of Common Stock | ' | ' | ' | 11,672 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining share authorized value | ' | ' | ' | 46,164 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of authorized shares (in shares) | ' | ' | ' | ' | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 2,000,000 | 1,000,000 |
Number of shares granted under plan can be stock appreciation rights, restricted stock, restricted stock units, deferred stock units or stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' |
Number of equity awards available for grant (in shares) | ' | ' | ' | 1,536,160 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise periods for stock options (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '1 year | ' | ' | ' | ' |
Vesting period of stock grants to employees (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '5 years | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional share-based payment expense related to plan amendment | ' | ' | ' | 2,095 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining share-based compensation expense to be recognized related to plan amendment | ' | ' | ' | 690 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | 6,318 | 5,001 | 6,037 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total income tax benefit recognized | ' | ' | ' | 2,243 | 1,709 | 2,124 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance award shares authorized (in shares) | ' | ' | ' | ' | ' | ' | ' | 150,000 | 50,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted-average fair value of stock options on the date of grant | ' | ' | ' | $12.16 | $6.35 | $6.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value of stock options exercised | ' | ' | ' | 12,093 | 7,643 | 665 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total cash as a result of the exercise of stock options | ' | ' | ' | 8,748 | 20,401 | 2,858 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense related to non-vested share-based compensation arrangements | ' | ' | ' | 11,732 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period expected term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Total fair value of restricted shares vested | ' | ' | ' | $2,757 | $2,911 | $3,078 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Fair_Value
Stockholders' Equity Fair Value Using Black-Scholes Option Pricing Model (Details) (Granted Stock Option) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Estimation of fair value using Black-Scholes option pricing model | ' | ' | ' |
Expected share price volatility, Minimum | 27.40% | 27.49% | 27.50% |
Expected share price volatility, Maximum | 27.65% | 28.99% | 29.15% |
Weighted average volatility | 27.52% | 28.34% | 28.46% |
Risk free rate, Minimum | 1.63% | 0.62% | 0.82% |
Risk free rate, Maximum | 2.03% | 0.92% | 1.27% |
Minimum [Member] | ' | ' | ' |
Estimation of fair value using Black-Scholes option pricing model | ' | ' | ' |
Expected annual dividend rate | 1.98% | 2.43% | 1.45% |
Expected term (in years) | '5 years | '5 years | '5 years |
Maximum [Member] | ' | ' | ' |
Estimation of fair value using Black-Scholes option pricing model | ' | ' | ' |
Expected annual dividend rate | 2.03% | 2.44% | 1.95% |
Expected term (in years) | '6 years | '6 years | '6 years |
Stockholders_Equity_Stock_Opti
Stockholders' Equity Stock Option Activity (Details) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Jun. 28, 2014 |
Stockholders' Equity Note [Abstract] | ' |
Outstanding Weighted Average Remaining Contractual Terms (in years) | '6 years 5 months 27 days |
Exercisable Weighted Average Remaining Contractual Term (in years) | '5 years 1 month 17 days |
Outstanding Aggregate Intrinsic Value | $23,079 |
Exercisable Aggregate Intrinsic Value | $17,108 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Shares, Beginning of year | 1,051,633 |
Shares, Granted | 167,466 |
Shares, Exercised | -355,228 |
Shares, Forfeited or expired | -5,369 |
Shares, End of year | 858,502 |
Shares, Exercisable | 507,264 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Weighted Average Exercise Prices, Beginning of year | $25.01 |
Weighted Average Exercise Prices, Granted | $48.43 |
Weighted Average Exercise Prices, Exercised | $24.63 |
Weighted Average Exercise Prices, Forfeited or expired | $28.32 |
Weighted Average Exercise Prices, End of year | $24.86 |
Weighted Average Exercise Prices, Exercisable | $18.01 |
Stockholders_Equity_Nonvested_
Stockholders' Equity Non-vested Shares of Restricted Stock (Details) (Restricted Stock, USD $) | 12 Months Ended |
Jun. 28, 2014 | |
Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Non-vested, Shares, Beginning Balance | 301,995 |
Shares, Granted | 113,162 |
Shares, Vested | -102,313 |
Shares, Forfeited | -8,041 |
Non-vested, Shares, Ending Balance | 304,803 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Weighted-Average Grant-Date Fair Value, Beginning Balance | $27.23 |
Weighted-Average Grant-Date Fair Value , Granted | $54.70 |
Weighted-Average Grant-Date Fair Value, Vested | $26.94 |
Weighted-Average Grant-Date Fair Value, Forfeited | $29.21 |
Weighted-Average Grant-Date Fair Value, Ending Balance | $37.48 |
Stockholders_Equity_Components
Stockholders' Equity Components of Other Comprehensive Income, Net of Tax (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Foreign currency translation | $22,682 | $24,093 | $30,552 |
Pension benefit liabilities | -19,748 | -15,650 | -27,759 |
Derivative financial instruments | 1,053 | 946 | -898 |
Accumulated other comprehensive income | 3,987 | 9,389 | 1,895 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income | 1,053 | 946 | ' |
Accumulated Translation Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income | 22,682 | 24,093 | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income | ($19,748) | ($15,650) | ' |
Stockholders_Equity_Changes_in
Stockholders' Equity Changes in accumulated other comprehensive income, net of tax (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 30, 2012 |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), period start | $9,389 | $1,895 |
Other comprehensive income (loss) before reclassifications | -6,865 | ' |
Reclassifications from net accumulated other comprehensive income | 1,463 | ' |
Net current period other comprehensive income (loss) | -5,402 | ' |
Accumulated other comprehensive income (loss), period end | 3,987 | 1,895 |
Accumulated Translation Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), period start | 24,093 | ' |
Other comprehensive income (loss) before reclassifications | -1,411 | ' |
Reclassifications from net accumulated other comprehensive income | 0 | ' |
Net current period other comprehensive income (loss) | -1,411 | ' |
Accumulated other comprehensive income (loss), period end | 22,682 | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), period start | -15,650 | ' |
Other comprehensive income (loss) before reclassifications | -5,230 | ' |
Reclassifications from net accumulated other comprehensive income | 1,132 | ' |
Net current period other comprehensive income (loss) | -4,098 | ' |
Accumulated other comprehensive income (loss), period end | -19,748 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss), period start | 946 | ' |
Other comprehensive income (loss) before reclassifications | -224 | ' |
Reclassifications from net accumulated other comprehensive income | 331 | ' |
Net current period other comprehensive income (loss) | 107 | ' |
Accumulated other comprehensive income (loss), period end | $1,053 | ' |
Stockholders_Equity_Reclassifi
Stockholders' Equity Reclassification from accumulated other comprehensive income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Interest expense | $6,320 | $4,853 | $6,048 |
Tax benefit | 33,730 | 28,646 | 12,171 |
Total, net of tax | 56,065 | 50,506 | 24,487 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total, net of tax | 1,463 | ' | ' |
Accumulated Defined Benefit Plans Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Tax benefit | -681 | ' | ' |
Amortization of net loss | 1,813 | ' | ' |
Total, net of tax | 1,132 | ' | ' |
Interest Rate Swap [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Interest expense | 533 | ' | ' |
Tax benefit | -202 | ' | ' |
Total, net of tax | $331 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Deferred tax assets related to state net operating loss carry-forwards | $7,156 | $6,175 | ' |
Deferred tax assets related to foreign net operating loss carry-forwards | 0 | 391 | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 1,012 | ' | ' |
Withholding tax from undistributed earnings | 56,414 | 57,300 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 351 | ' | ' |
Accrued interest and penalties related to uncertain tax positions | 2,061 | 1,620 | ' |
Unrecognized tax benefits that would affect effective tax rate | 1,704 | 1,353 | ' |
Unrecognized tax benefits | 10,826 | 9,338 | 11,328 |
Unrecognized tax benefits that would impact effective rate | 2,340 | 2,665 | ' |
Domestic Tax Authority | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Valuation Allowance balance | 6,762 | 5,753 | ' |
Foreign Tax Authority | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' |
Foreign tax credit carry-forwards | $0 | ' | ' |
Income_Taxes_Components_of_the
Income Taxes Components of the Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Current: | ' | ' | ' |
Federal | $10,723 | $15,646 | $3,266 |
State and local | 844 | 3,687 | 1,204 |
Foreign | 5,283 | 5,653 | 4,856 |
Total | 16,850 | 24,986 | 9,326 |
Deferred | 16,880 | 3,660 | 2,845 |
Provision for income taxes | $33,730 | $28,646 | $12,171 |
Income_Taxes_Reconciliation_Be
Income Taxes Reconciliation Between Statutory and Effective Rate (Details) | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | |
Reconciliation of the United States statutory income tax rate with our effective income tax rate | ' | ' | ' |
United States statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax benefit | 3.00% | 3.70% | 2.80% |
Foreign earnings taxed at different rates | 0.00% | -0.30% | -2.80% |
Change in uncertain tax position reserve | 0.00% | -1.60% | 2.70% |
Share-based compensation | 0.00% | 0.00% | 0.10% |
Disposition of subsidiary | 0.00% | 0.00% | -3.80% |
Permanent differences and other, net | -0.40% | -0.60% | -0.80% |
Effective income tax rate | 37.60% | 36.20% | 33.20% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes Deferred Tax Assets and Liabilities (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax liabilities: | ' | ' |
Inventory | ($40,781) | ($18,190) |
Depreciation | -9,815 | -18,819 |
Intangibles | -52,889 | -44,757 |
Derivative financial instruments | -627 | -563 |
Other | -2,606 | -2,707 |
Total deferred tax liabilities | -106,718 | -85,036 |
Deferred tax assets: | ' | ' |
Compensation and employees benefits | 50,024 | 44,577 |
Accruals and reserves | 7,618 | 9,208 |
Share-based payments | 3,864 | 3,778 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 7,156 | 6,566 |
Other | 1,968 | 604 |
Gross deferred tax assets | 70,630 | 64,733 |
Less valuation allowance | -6,762 | -5,753 |
Total deferred tax assets | 63,868 | 58,980 |
Net deferred tax liabilities | ($42,850) | ($26,056) |
Income_Taxes_Unrecognized_Tax_
Income Taxes Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ' |
Beginning balance | $9,338 | $11,328 |
Tax positions related to current year: | ' | ' |
Gross increase | 1,196 | 1,550 |
Gross decrease | 0 | 0 |
Tax positions related to prior years: | ' | ' |
Gross increase | 1,090 | 170 |
Gross decrease | -152 | -161 |
Settlements | -114 | -2,147 |
Lapses in statutes of limitations | -532 | -1,402 |
Ending balance | $10,826 | $9,338 |
Employee_Benefit_Plans_Obligat
Employee Benefit Plans Obligations and Funded Status (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Projected benefit obligation, end of year | $91,251 | $76,758 | ' |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets, end of year | 75,985 | 64,599 | ' |
Pension Plan | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Projected benefit obligation, beginning of year | 76,758 | 88,029 | ' |
Interest cost | 3,968 | 3,738 | 3,807 |
Actuarial loss/(gain) | 12,799 | -12,852 | ' |
Projected benefit obligation, end of year | 91,251 | 76,758 | 88,029 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets, beginning of year | 64,599 | 53,792 | ' |
Actual return on plan assets | 11,240 | 4,881 | ' |
Employer contributions | 2,420 | 8,083 | ' |
Benefits paid | -2,274 | -2,157 | ' |
Fair value of plan assets, end of year | 75,985 | 64,599 | 53,792 |
Funded status-net amount recognized | -15,266 | -12,159 | ' |
SERP | ' | ' | ' |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ' | ' | ' |
Projected benefit obligation, beginning of year | 15,548 | 17,576 | ' |
Interest cost | 758 | 688 | 774 |
Actuarial loss/(gain) | 2,138 | -2,057 | ' |
Projected benefit obligation, end of year | 17,610 | 15,548 | 17,576 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' |
Fair value of plan assets, beginning of year | 0 | 0 | ' |
Actual return on plan assets | 0 | 0 | ' |
Employer contributions | 834 | 659 | ' |
Benefits paid | -834 | -659 | ' |
Fair value of plan assets, end of year | 0 | 0 | 0 |
Funded status-net amount recognized | ($17,610) | ($15,548) | ' |
Employee_Benefit_Plans_Recogni
Employee Benefit Plans Recognized in the Consolidated Balance Sheet (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Pension Plan | ' | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' |
Accrued benefit liability | ($15,266) | ($12,159) |
Net amount recognized | -15,266 | -12,159 |
Accumulated other comprehensive loss/(gain) related to: | ' | ' |
Unrecognized net actuarial losses/(gains) | 4,560 | -16,817 |
SERP | ' | ' |
Amounts recognized in the Consolidated Balance Sheets | ' | ' |
Accrued benefit liability | -17,610 | -15,548 |
Net amount recognized | -17,610 | -15,548 |
Accumulated other comprehensive loss/(gain) related to: | ' | ' |
Unrecognized net actuarial losses/(gains) | $1,995 | ($2,458) |
Employee_Benefit_Plans_Compone
Employee Benefit Plans Components of Net Periodic Benefit Cost (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Pension Plan | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' |
Interest cost | $3,968 | $3,738 | $3,807 |
Expected return on assets | -4,638 | -4,227 | -3,905 |
Amortization of net loss | 1,636 | 3,312 | 1,482 |
Net periodic benefit cost | 966 | 2,823 | 1,384 |
SERP | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' |
Interest cost | 758 | 688 | 774 |
Expected return on assets | 0 | 0 | 0 |
Amortization of net loss | 143 | 401 | 92 |
Net periodic benefit cost | $901 | $1,089 | $866 |
Employee_Benefit_Plans_Weighte
Employee Benefit Plans Weighted Average Assumptions (Details) | 12 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Weighted average assumptions used to determine benefit obligations | ' | ' |
Expected return on plan assets | 6.50% | 7.25% |
Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Rate of compensation increase | 0.00% | 0.00% |
Weighted average assumptions used to determine benefit obligations | ' | ' |
Discount rate | 4.50% | 5.25% |
Rate of compensation increase | 0.00% | 0.00% |
Discount rate | 5.25% | 4.30% |
Expected return on plan assets | 7.25% | 7.50% |
SERP | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Rate of compensation increase | 0.00% | 0.00% |
Weighted average assumptions used to determine benefit obligations | ' | ' |
Discount rate | 4.30% | 5.00% |
Rate of compensation increase | 0.00% | 0.00% |
Discount rate | 5.00% | 4.00% |
Expected return on plan assets | 0.00% | 0.00% |
Employee_Benefit_Plans_Asset_A
Employee Benefit Plans Asset Allocations (Details) | 12 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Asset Allocations Total | 100.00% | ' |
Actual Asset Allocations | 100.00% | 100.00% |
International Equity | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Asset Allocations Total | 8.00% | ' |
Actual Asset Allocations | 6.80% | 13.60% |
Large cap equity | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Asset Allocations Total | 26.00% | ' |
Actual Asset Allocations | 25.90% | 31.20% |
Small cap equity | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Asset Allocations Total | 5.00% | ' |
Actual Asset Allocations | 4.80% | 8.10% |
Absolute return strategy funds | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Asset Allocations Total | 16.00% | ' |
Actual Asset Allocations | 15.30% | 15.80% |
Fixed income | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Asset Allocations Total | 45.00% | ' |
Actual Asset Allocations | 47.00% | 22.90% |
Long/short equity fund | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Target Asset Allocations Total | 0.00% | ' |
Actual Asset Allocations | 0.20% | 8.40% |
Employee_Benefit_Plans_Fair_Va
Employee Benefit Plans Fair Value Measurement (Details) (USD $) | Jun. 28, 2014 | Jun. 29, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | $75,985 | $64,599 |
Interest- bearing cash | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 1,688 | 776 |
Common Stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | ' | 0 |
Receivable from common/collective trusts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 243 | ' |
Common/collective trusts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 3,778 | 9,337 |
US Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 6,900 | ' |
Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 27,065 | ' |
Registered investment companies | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 36,311 | 52,742 |
Quoted Prices in Active Market for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 43,707 | 55,262 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Interest- bearing cash | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 1,688 | 776 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Common Stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | ' | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Receivable from common/collective trusts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 243 | ' |
Quoted Prices in Active Market for Identical Assets (Level 1) | Common/collective trusts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | US Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 5,465 | ' |
Quoted Prices in Active Market for Identical Assets (Level 1) | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | ' |
Quoted Prices in Active Market for Identical Assets (Level 1) | Registered investment companies | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 36,311 | 52,742 |
Significant Other Observable Inputs (Level 2 ) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 32,111 | 5,244 |
Significant Other Observable Inputs (Level 2 ) | Interest- bearing cash | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | 0 |
Significant Other Observable Inputs (Level 2 ) | Common Stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | ' | 0 |
Significant Other Observable Inputs (Level 2 ) | Receivable from common/collective trusts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | ' |
Significant Other Observable Inputs (Level 2 ) | Common/collective trusts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 3,611 | 5,244 |
Significant Other Observable Inputs (Level 2 ) | US Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 1,435 | ' |
Significant Other Observable Inputs (Level 2 ) | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 27,065 | ' |
Significant Other Observable Inputs (Level 2 ) | Registered investment companies | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 167 | 4,093 |
Significant Unobservable Inputs (Level 3) | Interest- bearing cash | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Common Stock [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | ' | 0 |
Significant Unobservable Inputs (Level 3) | Receivable from common/collective trusts [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | ' |
Significant Unobservable Inputs (Level 3) | Common/collective trusts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 167 | 4,093 |
Significant Unobservable Inputs (Level 3) | US Government Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | ' |
Significant Unobservable Inputs (Level 3) | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | 0 | ' |
Significant Unobservable Inputs (Level 3) | Registered investment companies | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of plan assets | $0 | $0 |
Employee_Benefit_Plans_Reconci
Employee Benefit Plans Reconciliation of Level 3 (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 |
Reconciliation of Level 3 assets | ' | ' |
Balance at beginning of the year | $4,093 | $12,132 |
Realized gains | -828 | -708 |
Net unrealized gains | 217 | 736 |
Net purchases, issuances and settlements | -3,315 | -8,067 |
Balance at end of the year | $167 | $4,093 |
Employee_Benefit_Plans_Estimat
Employee Benefit Plans Estimated Future Benefit Payments (Details) (USD $) | Jun. 28, 2014 |
In Thousands, unless otherwise specified | |
Pension Plan | ' |
Benefit payments, reflecting expected future service | ' |
2014 | $2,358 |
2015 | 2,515 |
2016 | 2,739 |
2017 | 3,022 |
2018 | 3,295 |
2020 to 2024 | 20,556 |
SERP | ' |
Benefit payments, reflecting expected future service | ' |
2014 | 795 |
2015 | 820 |
2016 | 868 |
2017 | 940 |
2018 | 986 |
2020 to 2024 | $5,413 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 29, 2014 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 31, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 29, 2013 | Jun. 30, 2012 | Jul. 03, 2010 | Jan. 01, 2011 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
G&K Services | G&K Services | Pension Plan | Pension Plan | Pension Plan | SERP | SERP | SERP | Executive Deferred Compensation Plan | Executive Deferred Compensation Plan | Executive Deferred Compensation Plan | Quebec Plan | 401 (k) Plan | 401 (k) Plan | 401 (k) Plan | United States | United States | United States | CANADA | CANADA | CANADA | ||||||||
Employee Benefit Plans (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of life insurance contracts and investments | ' | ' | $10,796 | ' | $11,579 | $10,796 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization from accumulated other comprehensive income into net periodic benefit cost | ' | ' | ' | ' | 2,406 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Projected benefit obligation | ' | ' | 76,758 | ' | 91,251 | 76,758 | ' | ' | ' | 91,251 | 76,758 | 88,029 | 17,610 | 15,548 | 17,576 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated benefit obligation | ' | ' | 76,758 | ' | 91,251 | 76,758 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of plan assets | ' | ' | 64,599 | ' | 75,985 | 64,599 | ' | ' | ' | 75,985 | 64,599 | 53,792 | 0 | 0 | 0 | 32,667 | 26,775 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected return on plan assets | ' | ' | ' | ' | 6.50% | 7.25% | ' | ' | ' | 7.25% | 7.50% | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated contribution to pension plan and SERP in 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,660 | ' | ' | 796 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Multiemployer plans withdrawal liability recorded | ' | 23,500 | 21,700 | ' | ' | 21,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pension withdrawal and associated expenses | 8,167 | 1,687 | 1,000 | 24,004 | 9,854 | 1,000 | 24,004 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of the Payment of Withdrawal Liability | ' | '20 years | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Discount Rate | ' | 5.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Surplus percent on actuarial valuation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions of G&K Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 509 | 779 | 1,282 | 805 | 823 | 787 |
Percentage of matching contribution received | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Annual contribution per employee, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Additional percentage of matching contribution on participant's contributed pay | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Annual contribution per employee over first percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,167 | 1,169 | 1,191 | ' | 5,310 | 5,236 | 4,844 | ' | ' | ' | ' | ' | ' |
Employer contribution to defined benefit plan | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated benefit obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,667 | 26,775 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate payments of multiemployer pension plan withdrawal liability | ' | 34,500 | 32,400 | ' | ' | 32,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Demand notice aggregate payments of multiemployer plan withdrawal liability | ' | 56,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Demand notice multiemployer plan withdrawal liability | ' | 35,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion Expense | ' | 113 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments made to the Central States Fund | ' | ' | ' | ' | $2,334 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Location | |||
Operating Leased Assets [Line Items] | ' | ' | ' |
Reserves related to environmental Matters | $900 | $1,700 | ' |
Environmental Remediation Expense | 371 | 330 | ' |
Locations with alleged violations | 1 | ' | ' |
Locations under audit | 6 | ' | ' |
Total rent expense for operating leases | $31,677 | $30,858 | $31,708 |
Maximum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Lease renewal period | '5 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Lease renewal period | '1 year | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies Future Minimum Operating Lease Payments (Details) (USD $) | Jun. 28, 2014 |
In Thousands, unless otherwise specified | |
Future minimum base rental payments for operating leases | ' |
2014 | $22,326 |
2015 | 18,621 |
2016 | 14,705 |
2017 | 9,782 |
2018 | 7,641 |
2020 to 2024 | 11,127 |
Total minimum lease payments | $84,202 |
Segment_Information_Details
Segment Information (Details) | 12 Months Ended |
Jun. 28, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of operating segments | 2 |
Maximum percentage of revenue from one single customer | 2.00% |
Segment_Information_Financial_
Segment Information Financial Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Financial information by segment | ' | ' | ' |
Revenues | $900,869 | $866,018 | $828,953 |
Income from continuing operations | 96,115 | 84,005 | 42,706 |
Interest expense | 6,320 | 4,853 | 6,048 |
Total assets | 923,519 | 897,286 | 873,731 |
Capital expenditures-net | 32,776 | 35,524 | 34,026 |
Depreciation and amortization expense | 30,877 | 32,175 | 33,983 |
Provision for income taxes | 33,730 | 28,646 | 12,171 |
United States | ' | ' | ' |
Financial information by segment | ' | ' | ' |
Revenues | 752,802 | 711,172 | 678,178 |
Income from continuing operations | 79,290 | 66,144 | 26,592 |
Interest expense | 6,320 | 4,853 | 6,048 |
Total assets | 859,474 | 831,860 | 803,388 |
Capital expenditures-net | 29,053 | 31,113 | 26,056 |
Depreciation and amortization expense | 26,743 | 27,050 | 28,738 |
Provision for income taxes | 28,684 | 24,342 | 2,494 |
Canada | ' | ' | ' |
Financial information by segment | ' | ' | ' |
Revenues | 148,067 | 154,846 | 150,775 |
Income from continuing operations | 16,825 | 17,861 | 16,114 |
Interest expense | 0 | 0 | 0 |
Total assets | 170,775 | 161,675 | 151,783 |
Capital expenditures-net | 3,723 | 4,411 | 7,970 |
Depreciation and amortization expense | 4,134 | 5,125 | 5,245 |
Provision for income taxes | 5,046 | 4,304 | 9,677 |
Elimination | ' | ' | ' |
Financial information by segment | ' | ' | ' |
Revenues | 0 | 0 | 0 |
Income from continuing operations | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Total assets | -106,730 | -96,249 | -81,440 |
Capital expenditures-net | 0 | 0 | 0 |
Depreciation and amortization expense | 0 | 0 | 0 |
Provision for income taxes | $0 | $0 | $0 |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) (Allowance for Doubtful Accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 28, 2014 | Jun. 29, 2013 | Jun. 30, 2012 |
Allowance for Doubtful Accounts | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance at Beginning of Year | $3,135 | $2,666 | $3,066 |
Charged to Costs and Expenses | 1,980 | 1,932 | 1,490 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 1,418 | 1,463 | 1,890 |
Balance at End of Year | ' | $3,135 | $2,666 |