Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 27, 2014 | Oct. 23, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 27-Sep-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'GK | ' |
Entity Registrant Name | 'G&K SERVICES INC | ' |
Entity Central Index Key | '0000039648 | ' |
Current Fiscal Year End Date | '--06-27 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 19,928,859 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $38,677 | $37,118 |
Accounts receivable, less allowance for doubtful accounts of $4,454 and $3,697 | 99,416 | 100,193 |
Inventory | 38,503 | 38,423 |
Merchandise In Service | 126,927 | 124,111 |
Other current assets | 24,144 | 27,250 |
Total current assets | 327,667 | 327,095 |
Property, plant and equipment, less accumulated depreciation of $371,733 and $368,672 | 202,249 | 201,382 |
Goodwill | 330,633 | 333,214 |
Other assets | 61,622 | 61,828 |
Total assets | 922,171 | 923,519 |
Current Liabilities | ' | ' |
Accounts payable | 45,758 | 44,600 |
Accrued expenses and other current liabilities | 64,013 | 72,640 |
Deferred income taxes | 26,164 | 26,306 |
Current maturities of long-term debt | 621 | 792 |
Total current liabilities | 136,556 | 144,338 |
Long-term debt, net of current maturities | 269,132 | 266,230 |
Deferred income taxes | 17,660 | 17,214 |
Other noncurrent liabilities | 120,523 | 121,693 |
Total liabilities | 543,871 | 549,475 |
Stockholders' Equity | ' | ' |
Common stock, $0.50 par value | 9,960 | 9,956 |
Additional paid-in capital | 65,465 | 62,864 |
Retained earnings | 303,815 | 297,237 |
Accumulated other comprehensive income (loss) | -940 | 3,987 |
Total stockholders' equity | 378,300 | 374,044 |
Total liabilities and stockholders' equity | $922,171 | $923,519 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $4,454 | $3,697 |
Accumulated depreciation | $371,733 | $368,672 |
Common stock, par value | $0.50 | $0.50 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Revenues | ' | ' |
Rental and direct sale revenue | $230,242 | $220,223 |
Operating Expenses | ' | ' |
Cost of rental and direct sale revenue | 151,452 | 144,505 |
Pension withdrawal and associated expenses | 0 | 1,687 |
Selling and administrative | 51,940 | 50,462 |
Total operating expenses | 203,392 | 196,654 |
Income from Continuing Operations | 26,850 | 23,569 |
Interest expense | 1,795 | 1,581 |
Income from Continuing Operations before Income Taxes | 25,055 | 21,988 |
Provision for income taxes | 8,687 | 8,378 |
Net Income from Continuing Operations | 16,368 | 13,610 |
Net income from discontinued operations | 0 | 211 |
Net Income | $16,368 | $13,821 |
Basic Earnings per Common Share from Continuing Operations (in dollars per share) | $0.82 | $0.69 |
Basic Earnings per Common Share from Discontinued Operations (in dollars per share) | $0 | $0.01 |
Basic Earnings per Common Share (in dollars per share) | $0.82 | $0.70 |
Diluted Earnings per Common Share from Continuing Operations (in dollars per share) | $0.81 | $0.68 |
Diluted Earnings per Common Share from Discontinued Operations (in dollars per share) | $0 | $0.01 |
Diluted Earnings per Common Share (in dollars per share) | $0.81 | $0.69 |
Weighted average number of shares outstanding, basic (in shares) | 19,628 | 19,429 |
Weighted average number of shares outstanding, diluted (in shares) | 19,999 | 19,836 |
Dividends Declared per Share | $0.31 | $0.27 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Net income | $16,368 | $13,821 |
Other comprehensive income (loss) | ' | ' |
Foreign currency translation adjustments | -6,370 | 2,810 |
Amortization of actuarial loss on pension benefit obligations | 609 | 453 |
Derivative financial instruments loss recognized | -9 | -174 |
Derivative financial instruments loss reclassified | -138 | -129 |
Other comprehensive income (loss) before income taxes | -5,632 | 3,218 |
Income tax expense (benefit) | -705 | 279 |
Other comprehensive income (loss), net of taxes | -4,927 | 2,939 |
Total comprehensive income | $11,441 | $16,760 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Class A Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning balance at Jun. 28, 2014 | $374,044 | $9,956 | $62,864 | $297,237 | $3,987 |
Beginning balance (shares) at Jun. 28, 2014 | ' | 19,912,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Total comprehensive income | 11,441 | ' | ' | 16,368 | -4,927 |
Issuance of common stock from exercise of stock options (shares) | ' | 52,000 | ' | ' | ' |
Issuance of common stock from exercise of stock options, net of income tax | 1,328 | 26 | 1,302 | ' | ' |
Issuance of restricted stock, net (shares) | ' | 49,000 | ' | ' | ' |
Issuance of restricted stock, net | 0 | 25 | -25 | ' | ' |
Equity based compensation | 1,773 | ' | 1,773 | ' | ' |
Shares associated with tax withholdings under our employee equity incentive plan (shares) | ' | -28,000 | ' | ' | ' |
Shares associated with tax withholdings under our employee equity incentive plan | -1,562 | -14 | -1,548 | ' | ' |
Share repurchase program (shares) | -65,200 | -65,000 | ' | ' | ' |
Share repurchase program | -3,641 | -33 | ' | -3,608 | ' |
Tax benefit related to equity based compensation | 1,099 | ' | 1,099 | ' | ' |
Cash dividends ($0.31 per share) | -6,182 | ' | ' | -6,182 | ' |
Ending balance at Sep. 27, 2014 | $378,300 | $9,960 | $65,465 | $303,815 | ($940) |
Ending balance (shares) at Sep. 27, 2014 | ' | 19,920,000 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (PARENTHETICAL) (USD $) | 3 Months Ended |
Sep. 27, 2014 | |
Cash dividends ($0.31 per share) | $0.31 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Operating Activities: | ' | ' |
Net income | $16,368 | $13,821 |
Adjustments to reconcile net income to net cash provided by operating activities - | ' | ' |
Depreciation and amortization | 7,891 | 7,631 |
Deferred income taxes | 1,224 | -2,022 |
Share-based compensation | 1,773 | 1,851 |
Changes in current operating items, exclusive of acquisitions and divestitures | ' | ' |
Accounts receivable | -70 | -4,332 |
Inventory and merchandise in service | -3,535 | -5,249 |
Accounts payable | 4,222 | 1,523 |
Other current assets and liabilities | -5,299 | -12,562 |
Other | -791 | 793 |
Net cash provided by operating activities | 21,783 | 1,454 |
Investing Activities: | ' | ' |
Capital expenditures | -12,498 | -6,390 |
Net cash used for investing activities | -12,498 | -6,390 |
Financing Activities: | ' | ' |
Repayments of long-term debt | -339 | -18 |
Repayments of revolving credit facilities, net | 3,075 | 6,600 |
Cash dividends paid | -6,182 | -5,312 |
Net issuance of common stock, under stock option plans | 1,328 | 2,453 |
Repurchase of common stock | -3,641 | -2,183 |
Share associated with tax withholdings under our equity incentive plans | -1,562 | -1,287 |
Excess tax benefit from share-based compensation | 1,099 | 1,141 |
Net cash (used for) provided by financing activities | -6,222 | 1,394 |
Effect of Exchange Rates on Cash | -1,504 | 539 |
Increase in Cash and Cash Equivalents | 1,559 | -3,003 |
Cash and Cash Equivalents: | ' | ' |
Beginning of period | 37,118 | 38,590 |
End of period | 38,677 | 35,587 |
Cash paid for interest | 333 | 331 |
Cash paid for income taxes | 720 | 10,687 |
Capital expenditures included in accounts payable | $500 | $0 |
Basis_of_Presentation_for_Inte
Basis of Presentation for Interim Financial Statements | 3 Months Ended |
Sep. 27, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation for Interim Financial Statements | ' |
Basis of Presentation for Interim Financial Statements | |
The Condensed Consolidated Financial Statements of G&K Services, Inc. (the "Company" or "G&K") as set forth in this quarterly report have been prepared pursuant to the rules and regulations of the U. S. Securities and Exchange Commission for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States can be condensed or omitted. Our accounting policies are described in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended June 28, 2014 ("fiscal 2014"). Management is responsible for the unaudited Condensed Consolidated Financial Statements included in this document. The Condensed Consolidated Financial Statements included in this document are unaudited but, in the opinion of management, include all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of our financial position as of September 27, 2014, and the results of our operations for the three months ended September 27, 2014 and September 28, 2013 and our cash flows for the three months ended September 27, 2014 and September 28, 2013. | |
The results of operations for the three month periods ended September 27, 2014 and September 28, 2013 are not necessarily indicative of the results to be expected for the full year. | |
This Quarterly Report on Form 10-Q should be read in conjunction with our Consolidated Financial Statements and notes included in our fiscal 2014 Annual Report on Form 10-K. |
Contingent_Liabilities
Contingent Liabilities | 3 Months Ended |
Sep. 27, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingent Liabilities | ' |
Contingent Liabilities | |
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 September 27, 2014 and June 28, 2014, we had reserves of approximately $1,000 and $900, respectively, related to these matters. There was $205 and $283 of expense for these matters for the three months ended September 27, 2014 and September 28, 2013, respectively. | |
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 two others. 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 Condensed Consolidated Financial Statements for information regarding disputed amounts related to our withdrawal from the Central States Southeast and Southwest Areas Pension Fund. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Sep. 27, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In July 2013, the FASB issued updated guidance to address the presentation of an unrecognized tax benefit when a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward exists. Specifically, the new guidance requires entities to present an unrecognized tax benefit netted against certain deferred tax assets when specific requirements are met. Our adoption of this guidance in the first quarter of fiscal year 2015 did not have a material impact on our results of operations, financial position or cash flows. | |
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 annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. We are currently evaluating the impact this new guidance will have on our Consolidated Financial Statements. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||
Sep. 27, 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. | ||||||||||||
We do not have any Level 3 assets or liabilities and we have not transferred any items between fair value levels during the first quarter of fiscal years 2014 or 2015. | ||||||||||||
The following tables summarize the assets and liabilities measured at fair value on a recurring basis as of September 27, 2014 and June 28, 2014: | ||||||||||||
As of September 27, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Other assets: | ||||||||||||
Money market mutual funds | $ | 3,787 | $ | — | $ | 3,787 | ||||||
Equity and fixed income mutual funds | 29,712 | — | 29,712 | |||||||||
Cash surrender value of life insurance policies | — | 14,286 | 14,286 | |||||||||
Total assets | $ | 33,499 | $ | 14,286 | $ | 47,785 | ||||||
Accrued expenses: | ||||||||||||
Derivative financial instruments | $ | — | $ | 746 | $ | 746 | ||||||
Total liabilities | $ | — | $ | 746 | $ | 746 | ||||||
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 | ||||||
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 obligations of the Company's non-qualified deferred compensation plan. | ||||||||||||
The following tables summarize the fair values of assets and liabilities that are recorded at historical cost as of September 27, 2014 and June 28, 2014: | ||||||||||||
As of September 27, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 38,677 | $ | — | $ | 38,677 | ||||||
Total assets | $ | 38,677 | $ | — | $ | 38,677 | ||||||
Current maturities of long-term debt | $ | — | $ | 621 | $ | 621 | ||||||
Long-term debt, net of current maturities | $ | — | $ | 266,178 | $ | 266,178 | ||||||
Total liabilities | $ | — | $ | 266,799 | $ | 266,799 | ||||||
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 | ||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Sep. 27, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
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 debt. | |
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 Condensed Consolidated Statements of Operations in the same period as the expenses from the cash flows of the interest expense is recognized. Cash payments or receipts are included in "Net cash provided by operating activities" in the Condensed 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 have any derivative financial instruments that have been designated as either a fair value hedge, a hedge of a 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 Condensed Consolidated Statements of Cash Flows. | |
Approximately 44% of our outstanding variable rate debt had its interest payments modified using interest rate swap contracts at September 27, 2014. | |
As of September 27, 2014 and June 28, 2014, we had $746 and $930, respectively, of liabilities on interest rate swap contracts that are classified as "Accrued expenses and other current liabilities" in the Condensed Consolidated Balance Sheets. Of the $1,132 net gain deferred in accumulated other comprehensive income as of September 27, 2014, a $202 loss is expected to be reclassified to interest expense in the next 12 months. | |
As of September 27, 2014 and June 28, 2014, all derivative financial instruments were designated as hedging instruments. | |
As of September 27, 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 London Interbank Offered Rate ("LIBOR"), all of which mature in the next 12 months. The average rate on the $75,000 of interest rate swap contracts was 1.25% as of September 27, 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. |
Income_Taxes
Income Taxes | 3 Months Ended |
Sep. 27, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our effective tax rate decreased to 34.7% in the three months ended September 27, 2014 from 38.1% in the three months ended September 28, 2013. The current period tax rate is lower than the prior year period due to the expiration of certain tax statutes in the current quarter. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Sep. 27, 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. | ||||||||
The computations of our basic and diluted earnings per share are set forth below: | ||||||||
Three Months Ended | ||||||||
September 27, | September 28, | |||||||
2014 | 2013 | |||||||
Net income from continuing operations | $ | 16,368 | $ | 13,610 | ||||
Less: Income allocable to participating securities | (233 | ) | (181 | ) | ||||
Net income from continuing operations available to common stockholders | $ | 16,135 | $ | 13,429 | ||||
Net income from discontinued operations | — | 211 | ||||||
Net income available to common stockholders | $ | 16,135 | $ | 13,640 | ||||
Basic earnings per share (shares in thousands): | ||||||||
Weighted average shares outstanding, basic | 19,628 | 19,429 | ||||||
Basic earnings per common share: | ||||||||
From continuing operations | $ | 0.82 | $ | 0.69 | ||||
From discontinued operations | $ | — | $ | 0.01 | ||||
Basic earnings per share | $ | 0.82 | $ | 0.7 | ||||
Diluted earnings per share (shares in thousands): | ||||||||
Weighted average shares outstanding, basic | 19,628 | 19,429 | ||||||
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options | 371 | 407 | ||||||
Weighted average shares outstanding, diluted | 19,999 | 19,836 | ||||||
Diluted earnings per common share: | ||||||||
From continuing operations | $ | 0.81 | $ | 0.68 | ||||
From discontinued operations | $ | — | $ | 0.01 | ||||
Diluted earnings per share | $ | 0.81 | $ | 0.69 | ||||
We excluded potential common shares related to our outstanding equity compensation grants of 246,000 and 94,000 for the three months ended September 27, 2014 and September 28, 2013, respectively, from the computation of diluted earnings per share. Inclusion of these shares would have been anti-dilutive. |
Inventory_and_Merchandise_In_S
Inventory and Merchandise In Service | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory and Merchandise In Service | ' | |||||||
Inventory and Merchandise In Service | ||||||||
The components of inventory as of September 27, 2014 and June 28, 2014 are as follows: | ||||||||
September 27, | June 28, | |||||||
2014 | 2014 | |||||||
Raw Materials | $ | 8,612 | $ | 7,952 | ||||
Work in Process | 1,209 | 1,279 | ||||||
Finished Goods | 28,682 | 29,192 | ||||||
Total Inventory | $ | 38,503 | $ | 38,423 | ||||
We review the estimated useful lives of our merchandise in service assets on a periodic basis or when trends in our business indicate that the useful lives for certain products might have changed. During the fourth quarter of fiscal year 2013, we completed an analysis of certain merchandise in service 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 $2,273, net income by $1,435 and basic and diluted earnings per common share by $0.07 for the three months ended September 28, 2013, respectively. The effect of the change in estimate is not material for the three months ended September 27, 2014. |
Goodwill
Goodwill | 3 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill | ' | |||||||||||
Goodwill | ||||||||||||
Goodwill by segment is as follows: | ||||||||||||
United States | Canada | Total | ||||||||||
Balance as of June 28, 2014 | $ | 270,045 | $ | 63,169 | $ | 333,214 | ||||||
Foreign currency translation and other | — | (2,581 | ) | (2,581 | ) | |||||||
Balance as of September 27, 2014 | $ | 270,045 | $ | 60,588 | $ | 330,633 | ||||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ||||||||
Long-term debt as of September 27, 2014 and June 28, 2014 consists of the following: | ||||||||
September 27, 2014 | June 28, 2014 | |||||||
Borrowings under $250M Revolver | $ | 69,000 | $ | 65,925 | ||||
Borrowings under $75M Variable Rate Notes | 75,000 | 75,000 | ||||||
Borrowings under $50M A/R Line | 25,075 | 25,075 | ||||||
Borrowings under $100M Fixed Rate Notes | 100,000 | 100,000 | ||||||
Capital leases and other | 678 | 1,022 | ||||||
269,753 | 267,022 | |||||||
Less current maturities | (621 | ) | (792 | ) | ||||
Total long-term debt | $ | 269,132 | $ | 266,230 | ||||
We have a $250,000, unsecured revolving credit facility 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 September 27, 2014, there was $69,000 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 September 27, 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 September 27, 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 regard to the material covenants required by the terms of this facility as of September 27, 2014: | ||||||||
Required | Actual | |||||||
Maximum Leverage Ratio (Debt/EBITDA) | 3.5 | 2.12 | ||||||
Minimum Interest Coverage Ratio (EBITDA/Interest Expense) | 3 | 21.34 | ||||||
Minimum Net Worth | $ | 358,999 | $ | 378,300 | ||||
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 September 27, 2014 under this facility bear interest at a weighted average effective rate of 1.38%. | ||||||||
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 our outstanding $75,000 variable rate unsecured private placement notes. On March 31, 2014, we amended the facility to reduce the minimum net worth covenant 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 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 September 27, 2014, the outstanding balance of the notes was $75,000 at an effective interest rate of 0.83%. We currently plan to repay these notes on their maturity date using borrowings from our $250M Revolver, which matures on March 7, 2017, so we continue to classify the $75,000 as long-term debt in the Condensed Consolidated Balance Sheets. | ||||||||
We maintain a $50,000 accounts receivable securitization facility, 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 September 27, 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 September 27, 2014 under this facility bear interest at an average effective interest rate of 0.90%. | ||||||||
We have $100,000 of fixed rate unsecured senior 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 April 15, 2025. Interest on the notes is payable semiannually. As of September 27, 2014, the outstanding balance of the notes was $100,000 at an effective rate of 3.81%. | ||||||||
See Note 5, "Derivative Financial Instruments," of the Notes to the Condensed Consolidated Financial Statements for details of our interest rate swap and hedging activities related to our outstanding debt. |
Other_Assets_and_Other_Noncurr
Other Assets and Other Noncurrent Liabilities | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ' | |||||||
Other Liabilities Disclosure [Text Block] | ' | |||||||
Other Noncurrent Liabilities | ||||||||
Other assets as of September 27, 2014 and June 28, 2014 included the following: | ||||||||
September 27, 2014 | June 28, 2014 | |||||||
Executive deferred compensation plan assets | $ | 33,499 | $ | 32,667 | ||||
Cash surrender value of life insurance policies | 14,286 | 14,287 | ||||||
Customer contracts and non-competition agreements, net | 5,905 | 6,448 | ||||||
Other assets | 10,424 | 10,603 | ||||||
Less portion classified as current assets | (2,492 | ) | (2,177 | ) | ||||
Total other assets | $ | 61,622 | $ | 61,828 | ||||
Customer contracts and non-competition agreements are as follows: | ||||||||
September 27, | June 28, | |||||||
2014 | 2014 | |||||||
Customer contracts and non-competition agreements | $ | 21,375 | $ | 23,838 | ||||
Accumulated amortization | (15,470 | ) | (17,390 | ) | ||||
Net | $ | 5,905 | $ | 6,448 | ||||
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 $563 and $772 for the three months ended September 27, 2014 and September 28, 2013, respectively. Estimated amortization expense for each of the next five fiscal years based on the intangible assets as of September 27, 2014 is as follows: | ||||||||
2015 remaining | $ | 1,376 | ||||||
2016 | 1,391 | |||||||
2017 | 1,192 | |||||||
2018 | 410 | |||||||
2019 | 176 | |||||||
2020 | 164 | |||||||
Other noncurrent liabilities as of September 27, 2014 and June 28, 2014 included the following: | ||||||||
September 27, 2014 | June 28, 2014 | |||||||
Multi-employer pension withdrawal liability | $ | 28,068 | $ | 28,516 | ||||
Pension plan liability | 15,078 | 15,422 | ||||||
Executive deferred compensation plan liability | 30,860 | 30,584 | ||||||
Supplemental executive retirement plan liability | 16,765 | 16,814 | ||||||
Accrued income taxes | 11,277 | 12,043 | ||||||
Workers' compensation liability | 14,544 | 14,837 | ||||||
Other liabilities | 3,931 | 3,477 | ||||||
Total other noncurrent liabilities | $ | 120,523 | $ | 121,693 | ||||
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 27, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share-Based Compensation | ' |
Share-Based Compensation | |
We grant share-based awards, primarily consisting of 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 Condensed 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, canceled, expire or restrictions lapse, we recognize adjustments to income tax expense or additional paid-in capital. Total compensation expense related to share-based awards was $1,773 and $1,851 for the three months ended September 27, 2014 and September 28, 2013, respectively. The number of options exercised and restricted stock vested since June 28, 2014, was 136,000 shares. | |
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. |
Employee_Benefit_Plans
Employee Benefit Plans | 3 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||
Employee Benefit Plans | ||||||||||||||||
Defined Benefit Pension Plan | ||||||||||||||||
On December 31, 2006, we froze our pension and SERP plans for all participants. | ||||||||||||||||
The components of net periodic pension cost for these plans for the three months ended September 27, 2014 and September 28, 2013 are as follows: | ||||||||||||||||
Pension Plan | SERP | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost | $ | 1,012 | $ | 992 | $ | 185 | $ | 189 | ||||||||
Expected return on assets | (1,226 | ) | (1,159 | ) | — | — | ||||||||||
Amortization of net loss | 504 | 409 | 98 | 36 | ||||||||||||
Net periodic pension cost | $ | 290 | $ | 242 | $ | 283 | $ | 225 | ||||||||
During the first quarter of fiscal year 2015, we contributed approximately $145 to the pension plan. | ||||||||||||||||
Multi-Employer Pension Plans | ||||||||||||||||
Historically, we participated in a number of union sponsored, collectively bargained multi-employer pension plans ("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. | ||||||||||||||||
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 Southeast and Southwest Areas Pension Fund ("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. We finalized our withdrawal in calendar year 2013, which resulted in the union sending us updated information related to our withdrawal liability. | ||||||||||||||||
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 are vigorously contesting 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 are likewise contesting 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 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 September 27, 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 three months ended September 28, 2013. 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 three months ended September 27, 2014 and September 28, 2013, we made total payments related to our withdrawal liability of $700 and $0, respectively, 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 determined that it was probable that we would withdraw from the plans. Accordingly, we recorded a pretax charge of $8,167 in the third quarter of fiscal year 2014. 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. As of September 27, 2014, we had concluded negotiations with all but one of the union locals and are in the process of finalizing our withdrawal from three of the four remaining MEPPs. We expect to finalize withdrawal from the remaining MEPP later in fiscal year 2015. Upon conclusion of negotiations and exit from these plans, we will no longer participate in any United States MEPPs. | ||||||||||||||||
While we have reached agreement to exit from three of these MEPPs to date, we have received a formal demand notice from only one of the funds. As such, our estimated withdrawal liability was based on previous information received from the funds. The ultimate amount of the withdrawal assessed by the MEPPs is impacted by a number of factors, including, among other things, investment returns, benefit levels, interest rates and financial difficulty of other participating employers in the plans. We recently became aware that the National Retirement Fund, one of the MEPPs we have withdrawn from, changed certain assumptions, which may have increased the underfunded liability of the plan. Given the complexities in determining our withdrawal liability, and the lack of information available to us, we are unable to estimate the impact, if any, this may have on our withdrawal liability. However, it is reasonably possible it may have a material impact on our results of operations. If the ultimate assessment includes a material change with which we disagree, we intend to contest the assessment using all available means. |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Segment Reporting, Measurement Disclosures [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. During the three months ended September 27, 2014, and for the same period of the prior fiscal year, 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. | ||||||||||||||||
We evaluate performance based on income from operations. Financial information by segment for the three month periods ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||||||||||
For the Three Months Ended | United | Canada | Elimination | Total | ||||||||||||
States | ||||||||||||||||
27-Sep-14 | ||||||||||||||||
Revenues | $ | 194,397 | $ | 35,845 | $ | — | $ | 230,242 | ||||||||
Income from continuing operations | 22,806 | 4,044 | — | 26,850 | ||||||||||||
Total assets | 867,757 | 164,244 | (109,830 | ) | 922,171 | |||||||||||
Depreciation and amortization expense | 6,895 | 996 | — | 7,891 | ||||||||||||
28-Sep-13 | ||||||||||||||||
Revenues | $ | 184,202 | $ | 36,021 | $ | — | $ | 220,223 | ||||||||
Income from continuing operations | 20,640 | 2,929 | — | 23,569 | ||||||||||||
Total assets | 842,207 | 164,095 | (98,060 | ) | 908,242 | |||||||||||
Depreciation and amortization expense | 6,529 | 1,102 | — | 7,631 | ||||||||||||
Share_Repurchase
Share Repurchase | 3 Months Ended |
Sep. 27, 2014 | |
Disclosure Share Repurchase Additional Information [Abstract] | ' |
Share Repurchase | ' |
Share Repurchase | |
As of September 27, 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 65,200 shares in open market transactions totaling $3,641 for the three months ended September 27, 2014 and 40,219 shares totaling $2,183 for the three months ended September 28, 2013. As of September 27, 2014, we had $42,523 remaining under this authorization. |
Other_Comprehensive_Income
Other Comprehensive Income | 3 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Other Comprehensive Income [Abstract] | ' | |||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | |||||||||||||||
Other Comprehensive Income | ||||||||||||||||
Changes in accumulated other comprehensive income, net of tax, for the three months ended September 27, 2014 and September 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended September 27, 2014 | ||||||||||||||||
Foreign currency translation adjustment | Pension benefit liabilities | Derivative financial instruments | Total | |||||||||||||
Accumulated other comprehensive income (loss) at June 28, 2014 | $ | 22,682 | $ | (19,748 | ) | $ | 1,053 | $ | 3,987 | |||||||
Other comprehensive loss before reclassifications | (5,388 | ) | — | (5 | ) | (5,393 | ) | |||||||||
Reclassifications from net accumulated other comprehensive income | — | 381 | 85 | 466 | ||||||||||||
Net current period other comprehensive income (loss) | (5,388 | ) | 381 | 80 | (4,927 | ) | ||||||||||
Accumulated other comprehensive income (loss) at September 27, 2014 | $ | 17,294 | $ | (19,367 | ) | $ | 1,133 | $ | (940 | ) | ||||||
Three Months Ended September 28, 2013 | ||||||||||||||||
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 | 2,684 | — | (109 | ) | 2,575 | |||||||||||
Reclassifications from net accumulated other comprehensive income | — | 283 | 81 | 364 | ||||||||||||
Net current period other comprehensive income (loss) | 2,684 | 283 | (28 | ) | 2,939 | |||||||||||
Accumulated other comprehensive income (loss) at September 28, 2013 | $ | 26,777 | $ | (15,367 | ) | $ | 918 | $ | 12,328 | |||||||
Amounts reclassified from accumulated other comprehensive income for the three months ended September 27, 2014 and September 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
27-Sep-14 | September 28, 2013 | |||||||||||||||
Losses on derivative financial instruments: | ||||||||||||||||
Interest rate swap contracts | $ | 138 | $ | 129 | (a) | |||||||||||
Tax benefit | (53 | ) | (48 | ) | ||||||||||||
Total, net of tax | 85 | 81 | ||||||||||||||
Pension benefit liabilities: | ||||||||||||||||
Amortization of net loss | 609 | 453 | (b) | |||||||||||||
Tax benefit | (228 | ) | (170 | ) | ||||||||||||
Total, net of tax | 381 | 283 | ||||||||||||||
Total amounts reclassified, net of tax | $ | 466 | $ | 364 | ||||||||||||
(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 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. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Sep. 27, 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 previously concluded that both the Program Business and Ireland Business met the requirements to be presented as discontinued operations. Accordingly, the results of these operations have been reclassified to discontinued operations for all periods presented on the Condensed Consolidated Statements of Operations. Summarized financial information for discontinued operations is shown below: | ||||||||
Three Months Ended | ||||||||
September 27, 2014 | September 28, 2013 | |||||||
Rental and direct sale revenue from discontinued operations | $ | — | $ | 9,070 | ||||
Income before income taxes | — | 361 | ||||||
Income, net of tax | — | 211 | ||||||
Loss on sale and other adjustments, net of tax | — | — | ||||||
Net income from discontinued operations | $ | — | $ | 211 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||
The following tables summarize the assets and liabilities measured at fair value on a recurring basis as of September 27, 2014 and June 28, 2014: | ||||||||||||
As of September 27, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Other assets: | ||||||||||||
Money market mutual funds | $ | 3,787 | $ | — | $ | 3,787 | ||||||
Equity and fixed income mutual funds | 29,712 | — | 29,712 | |||||||||
Cash surrender value of life insurance policies | — | 14,286 | 14,286 | |||||||||
Total assets | $ | 33,499 | $ | 14,286 | $ | 47,785 | ||||||
Accrued expenses: | ||||||||||||
Derivative financial instruments | $ | — | $ | 746 | $ | 746 | ||||||
Total liabilities | $ | — | $ | 746 | $ | 746 | ||||||
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 | ||||||
Summary of Assets and Liabilities at Fair Value | ' | |||||||||||
The following tables summarize the fair values of assets and liabilities that are recorded at historical cost as of September 27, 2014 and June 28, 2014: | ||||||||||||
As of September 27, 2014 | ||||||||||||
Fair Value Measurements Using Inputs Considered as | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Cash and cash equivalents | $ | 38,677 | $ | — | $ | 38,677 | ||||||
Total assets | $ | 38,677 | $ | — | $ | 38,677 | ||||||
Current maturities of long-term debt | $ | — | $ | 621 | $ | 621 | ||||||
Long-term debt, net of current maturities | $ | — | $ | 266,178 | $ | 266,178 | ||||||
Total liabilities | $ | — | $ | 266,799 | $ | 266,799 | ||||||
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 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computations of Basic and Diluted Earnings Per Share | ' | |||||||
The computations of our basic and diluted earnings per share are set forth below: | ||||||||
Three Months Ended | ||||||||
September 27, | September 28, | |||||||
2014 | 2013 | |||||||
Net income from continuing operations | $ | 16,368 | $ | 13,610 | ||||
Less: Income allocable to participating securities | (233 | ) | (181 | ) | ||||
Net income from continuing operations available to common stockholders | $ | 16,135 | $ | 13,429 | ||||
Net income from discontinued operations | — | 211 | ||||||
Net income available to common stockholders | $ | 16,135 | $ | 13,640 | ||||
Basic earnings per share (shares in thousands): | ||||||||
Weighted average shares outstanding, basic | 19,628 | 19,429 | ||||||
Basic earnings per common share: | ||||||||
From continuing operations | $ | 0.82 | $ | 0.69 | ||||
From discontinued operations | $ | — | $ | 0.01 | ||||
Basic earnings per share | $ | 0.82 | $ | 0.7 | ||||
Diluted earnings per share (shares in thousands): | ||||||||
Weighted average shares outstanding, basic | 19,628 | 19,429 | ||||||
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options | 371 | 407 | ||||||
Weighted average shares outstanding, diluted | 19,999 | 19,836 | ||||||
Diluted earnings per common share: | ||||||||
From continuing operations | $ | 0.81 | $ | 0.68 | ||||
From discontinued operations | $ | — | $ | 0.01 | ||||
Diluted earnings per share | $ | 0.81 | $ | 0.69 | ||||
We excluded potential common shares related to our outstanding equity compensation grants of 246,000 and 94,000 for the three months ended September 27, 2014 and September 28, 2013, respectively, from the computation of diluted earnings per share. Inclusion of these shares would have been anti-dilutive. |
Inventory_and_Merchandise_In_S1
Inventory and Merchandise In Service (Tables) | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventory | ' | |||||||
The components of inventory as of September 27, 2014 and June 28, 2014 are as follows: | ||||||||
September 27, | June 28, | |||||||
2014 | 2014 | |||||||
Raw Materials | $ | 8,612 | $ | 7,952 | ||||
Work in Process | 1,209 | 1,279 | ||||||
Finished Goods | 28,682 | 29,192 | ||||||
Total Inventory | $ | 38,503 | $ | 38,423 | ||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | |||||||||||
Sep. 27, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of Goodwill by Segment | ' | |||||||||||
Goodwill by segment is as follows: | ||||||||||||
United States | Canada | Total | ||||||||||
Balance as of June 28, 2014 | $ | 270,045 | $ | 63,169 | $ | 333,214 | ||||||
Foreign currency translation and other | — | (2,581 | ) | (2,581 | ) | |||||||
Balance as of September 27, 2014 | $ | 270,045 | $ | 60,588 | $ | 330,633 | ||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Amount of Long-Term Debt | ' | |||||||
ebt as of September 27, 2014 and June 28, 2014 consists of the following: | ||||||||
September 27, 2014 | June 28, 2014 | |||||||
Borrowings under $250M Revolver | $ | 69,000 | $ | 65,925 | ||||
Borrowings under $75M Variable Rate Notes | 75,000 | 75,000 | ||||||
Borrowings under $50M A/R Line | 25,075 | 25,075 | ||||||
Borrowings under $100M Fixed Rate Notes | 100,000 | 100,000 | ||||||
Capital leases and other | 678 | 1,022 | ||||||
269,753 | 267,022 | |||||||
Less current maturities | (621 | ) | (792 | ) | ||||
Total long-term debt | $ | 269,132 | $ | 266,230 | ||||
Material Covenants Required by Terms of This Facility | 'The following table illustrates compliance with regard to the material covenants required by the terms of this facility as of SeptemberB 27, 2014:B B RequiredB ActualMaximum Leverage Ratio (Debt/EBITDA)3.50B 2.12Minimum Interest Coverage Ratio (EBITDA/Interest Expense)3.00B 21.34Minimum Net Worth$358,999B $378,300 |
Other_Assets_and_Other_Noncurr1
Other Assets and Other Noncurrent Liabilities (Tables) | 3 Months Ended | |||||||
Sep. 27, 2014 | ||||||||
Other Liabilities, Noncurrent [Abstract] | ' | |||||||
Schedule of Other Assets [Table Text Block] | ' | |||||||
Other assets as of September 27, 2014 and June 28, 2014 included the following: | ||||||||
September 27, 2014 | June 28, 2014 | |||||||
Executive deferred compensation plan assets | $ | 33,499 | $ | 32,667 | ||||
Cash surrender value of life insurance policies | 14,286 | 14,287 | ||||||
Customer contracts and non-competition agreements, net | 5,905 | 6,448 | ||||||
Other assets | 10,424 | 10,603 | ||||||
Less portion classified as current assets | (2,492 | ) | (2,177 | ) | ||||
Total other assets | $ | 61,622 | $ | 61,828 | ||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | |||||||
Customer contracts and non-competition agreements are as follows: | ||||||||
September 27, | June 28, | |||||||
2014 | 2014 | |||||||
Customer contracts and non-competition agreements | $ | 21,375 | $ | 23,838 | ||||
Accumulated amortization | (15,470 | ) | (17,390 | ) | ||||
Net | $ | 5,905 | $ | 6,448 | ||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||
Estimated amortization expense for each of the next five fiscal years based on the intangible assets as of September 27, 2014 is as follows: | ||||||||
2015 remaining | $ | 1,376 | ||||||
2016 | 1,391 | |||||||
2017 | 1,192 | |||||||
2018 | 410 | |||||||
2019 | 176 | |||||||
2020 | 164 | |||||||
Schedule of Other Noncurrent Liabilities [Table Text Block] | ' | |||||||
Other noncurrent liabilities as of September 27, 2014 and June 28, 2014 included the following: | ||||||||
September 27, 2014 | June 28, 2014 | |||||||
Multi-employer pension withdrawal liability | $ | 28,068 | $ | 28,516 | ||||
Pension plan liability | 15,078 | 15,422 | ||||||
Executive deferred compensation plan liability | 30,860 | 30,584 | ||||||
Supplemental executive retirement plan liability | 16,765 | 16,814 | ||||||
Accrued income taxes | 11,277 | 12,043 | ||||||
Workers' compensation liability | 14,544 | 14,837 | ||||||
Other liabilities | 3,931 | 3,477 | ||||||
Total other noncurrent liabilities | $ | 120,523 | $ | 121,693 | ||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 3 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | |||||||||||||||
Components of Net Periodic Benefit Cost | ' | |||||||||||||||
The components of net periodic pension cost for these plans for the three months ended September 27, 2014 and September 28, 2013 are as follows: | ||||||||||||||||
Pension Plan | SERP | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
September 27, | September 28, | September 27, | September 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost | $ | 1,012 | $ | 992 | $ | 185 | $ | 189 | ||||||||
Expected return on assets | (1,226 | ) | (1,159 | ) | — | — | ||||||||||
Amortization of net loss | 504 | 409 | 98 | 36 | ||||||||||||
Net periodic pension cost | $ | 290 | $ | 242 | $ | 283 | $ | 225 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Segment Reporting, Measurement Disclosures [Abstract] | ' | |||||||||||||||
Financial Information by Segment | ' | |||||||||||||||
Financial information by segment for the three month periods ended September 27, 2014 and September 28, 2013 is as follows: | ||||||||||||||||
For the Three Months Ended | United | Canada | Elimination | Total | ||||||||||||
States | ||||||||||||||||
27-Sep-14 | ||||||||||||||||
Revenues | $ | 194,397 | $ | 35,845 | $ | — | $ | 230,242 | ||||||||
Income from continuing operations | 22,806 | 4,044 | — | 26,850 | ||||||||||||
Total assets | 867,757 | 164,244 | (109,830 | ) | 922,171 | |||||||||||
Depreciation and amortization expense | 6,895 | 996 | — | 7,891 | ||||||||||||
28-Sep-13 | ||||||||||||||||
Revenues | $ | 184,202 | $ | 36,021 | $ | — | $ | 220,223 | ||||||||
Income from continuing operations | 20,640 | 2,929 | — | 23,569 | ||||||||||||
Total assets | 842,207 | 164,095 | (98,060 | ) | 908,242 | |||||||||||
Depreciation and amortization expense | 6,529 | 1,102 | — | 7,631 | ||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||
Sep. 27, 2014 | ||||||||||||||||
Other Comprehensive Income [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||
Changes in accumulated other comprehensive income, net of tax, for the three months ended September 27, 2014 and September 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended September 27, 2014 | ||||||||||||||||
Foreign currency translation adjustment | Pension benefit liabilities | Derivative financial instruments | Total | |||||||||||||
Accumulated other comprehensive income (loss) at June 28, 2014 | $ | 22,682 | $ | (19,748 | ) | $ | 1,053 | $ | 3,987 | |||||||
Other comprehensive loss before reclassifications | (5,388 | ) | — | (5 | ) | (5,393 | ) | |||||||||
Reclassifications from net accumulated other comprehensive income | — | 381 | 85 | 466 | ||||||||||||
Net current period other comprehensive income (loss) | (5,388 | ) | 381 | 80 | (4,927 | ) | ||||||||||
Accumulated other comprehensive income (loss) at September 27, 2014 | $ | 17,294 | $ | (19,367 | ) | $ | 1,133 | $ | (940 | ) | ||||||
Three Months Ended September 28, 2013 | ||||||||||||||||
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 | 2,684 | — | (109 | ) | 2,575 | |||||||||||
Reclassifications from net accumulated other comprehensive income | — | 283 | 81 | 364 | ||||||||||||
Net current period other comprehensive income (loss) | 2,684 | 283 | (28 | ) | 2,939 | |||||||||||
Accumulated other comprehensive income (loss) at September 28, 2013 | $ | 26,777 | $ | (15,367 | ) | $ | 918 | $ | 12,328 | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income for the three months ended September 27, 2014 and September 28, 2013 were as follows: | ||||||||||||||||
Three Months Ended | ||||||||||||||||
27-Sep-14 | September 28, 2013 | |||||||||||||||
Losses on derivative financial instruments: | ||||||||||||||||
Interest rate swap contracts | $ | 138 | $ | 129 | (a) | |||||||||||
Tax benefit | (53 | ) | (48 | ) | ||||||||||||
Total, net of tax | 85 | 81 | ||||||||||||||
Pension benefit liabilities: | ||||||||||||||||
Amortization of net loss | 609 | 453 | (b) | |||||||||||||
Tax benefit | (228 | ) | (170 | ) | ||||||||||||
Total, net of tax | 381 | 283 | ||||||||||||||
Total amounts reclassified, net of tax | $ | 466 | $ | 364 | ||||||||||||
(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 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. |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Sep. 27, 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: | ||||||||
Three Months Ended | ||||||||
September 27, 2014 | September 28, 2013 | |||||||
Rental and direct sale revenue from discontinued operations | $ | — | $ | 9,070 | ||||
Income before income taxes | — | 361 | ||||||
Income, net of tax | — | 211 | ||||||
Loss on sale and other adjustments, net of tax | — | — | ||||||
Net income from discontinued operations | $ | — | $ | 211 | ||||
Contingent_Liabilities_Additio
Contingent Liabilities - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Jun. 28, 2014 |
Location | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Reserves related to environmental matters | $1,000 | ' | $900 |
Expenses related to environmental matters | $205 | $283 | ' |
Locations Issued Predetermination Notice | 1 | ' | ' |
Locations with alleged violations | 2 | ' | ' |
Locations under audit | 6 | ' | ' |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Other assets: | ' | ' |
Total assets | $38,677 | $37,118 |
Accrued expenses: | ' | ' |
Total liabilities | 266,799 | 263,983 |
Fair Value, Measurements, Recurring | ' | ' |
Other assets: | ' | ' |
Money market mutual funds | 3,787 | 3,309 |
Equity and fixed income mutual funds | 29,712 | 29,358 |
Cash surrender value of life insurance policies | 14,286 | 14,287 |
Total assets | 47,785 | 46,954 |
Accrued expenses: | ' | ' |
Derivative financial instruments | 746 | 930 |
Total liabilities | 746 | 930 |
Level 1 | ' | ' |
Other assets: | ' | ' |
Total assets | 38,677 | 37,118 |
Accrued expenses: | ' | ' |
Total liabilities | 0 | 0 |
Level 1 | Fair Value, Measurements, Recurring | ' | ' |
Other assets: | ' | ' |
Money market mutual funds | 3,787 | 3,309 |
Equity and fixed income mutual funds | 29,712 | 29,358 |
Cash surrender value of life insurance policies | 0 | 0 |
Total assets | 33,499 | 32,667 |
Accrued expenses: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ' | ' |
Other assets: | ' | ' |
Total assets | 0 | 0 |
Accrued expenses: | ' | ' |
Total liabilities | 266,799 | 263,983 |
Level 2 | Fair Value, Measurements, Recurring | ' | ' |
Other assets: | ' | ' |
Money market mutual funds | 0 | 0 |
Equity and fixed income mutual funds | 0 | 0 |
Cash surrender value of life insurance policies | 14,286 | 14,287 |
Total assets | 14,286 | 14,287 |
Accrued expenses: | ' | ' |
Derivative financial instruments | 746 | 930 |
Total liabilities | $746 | $930 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets and Liabilities at Fair Value (Detail) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Cash and cash equivalents | $38,677 | $37,118 |
Total assets | 38,677 | 37,118 |
Current maturities of long-term debt | 621 | 792 |
Long-term debt, net of current maturities | 266,178 | 263,191 |
Total liabilities | 266,799 | 263,983 |
Level 1 | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Cash and cash equivalents | 38,677 | 37,118 |
Total assets | 38,677 | 37,118 |
Current maturities of long-term debt | 0 | 0 |
Long-term debt, net of current maturities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Total assets | 0 | 0 |
Current maturities of long-term debt | 621 | 792 |
Long-term debt, net of current maturities | 266,178 | 263,191 |
Total liabilities | $266,799 | $263,983 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Sep. 27, 2014 | Sep. 27, 2014 |
Accrued Expenses [Member] | Accrued Expenses [Member] | Interest rate swap contracts | Interest rate swap contracts | ||
Maximum | |||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Percentage of outstanding variable rate debt modified | 44.00% | ' | ' | ' | ' |
Liabilities on interest rate swap contracts | ' | $746 | $930 | ' | ' |
Net gain deferred in accumulated other comprehensive income | 1,132 | ' | ' | ' | ' |
Loss expected to be reclassified to interest expense | 202 | ' | ' | ' | ' |
Average rate on interest rate swap contracts | ' | ' | ' | 1.25% | ' |
Maturity period of notional amount of interest rate swaps (in months) | ' | ' | ' | ' | '12 months |
Notional amount of interest rate swap contracts | ' | ' | ' | $75,000 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 3 Months Ended | |
Sep. 27, 2014 | Sep. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective tax rate (in percent) | 34.70% | 38.10% |
Earnings_Per_Share_Computation
Earnings Per Share - Computations of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Net income from continuing operations | $16,368 | $13,610 |
Less: Income allocable to participating securities | -233 | -181 |
Net income from continuing operations available to common stockholders | 16,135 | 13,429 |
Net income from discontinued operations | 0 | 211 |
Net income available to common stockholders | $16,135 | $13,640 |
Basic earnings per share: | ' | ' |
Weighted average shares outstanding, basic (in shares) | 19,628,000 | 19,429,000 |
Basic earnings per common share from continuing operations (in dollars per share) | $0.82 | $0.69 |
Basic earnings per common share from discontinued operations (in dollars per share) | $0 | $0.01 |
Basic earnings per common share (in dollars per share) | $0.82 | $0.70 |
Diluted earnings per share: | ' | ' |
Weighted average shares outstanding, basic (in shares) | 19,628,000 | 19,429,000 |
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options (in shares) | 371,000 | 407,000 |
Weighted average shares outstanding, diluted (In shares) | 19,999,000 | 19,836,000 |
Diluted earnings per common share from continuing operations (in dollars per share) | $0.81 | $0.68 |
Diluted earnings per common share from discontinued operations (in dollars per share) | $0 | $0.01 |
Diluted earnings per common share (in dollars per share) | $0.81 | $0.69 |
Shares excluded from computation of diluted earnings per share (in shares) | 246,000 | 94,000 |
Inventory_and_Merchandise_In_S2
Inventory and Merchandise In Service - Components of Inventory (Detail) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw Materials | $8,612 | $7,952 |
Work in Process | 1,209 | 1,279 |
Finished Goods | 28,682 | 29,192 |
Total Inventory | $38,503 | $38,423 |
Inventory_and_Merchandise_In_S3
Inventory and Merchandise In Service - Additional Information (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 |
Inventory Disclosure [Abstract] | ' |
Effect of change in inventory lives on income from operations | $2,273 |
Effect of change in inventory lives on net income | $1,435 |
Effect of change in inventory lives on earnings per share (in dollars per share) | $0.07 |
Goodwill_Schedule_of_Goodwill_
Goodwill - Schedule of Goodwill by Segment (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2014 |
Goodwill [Roll Forward] | ' |
Balance as of June 28, 2014 | $333,214 |
Foreign currency translation and other | -2,581 |
Balance as of September 27, 2014 | 330,633 |
United States | ' |
Goodwill [Roll Forward] | ' |
Balance as of June 28, 2014 | 270,045 |
Foreign currency translation and other | 0 |
Balance as of September 27, 2014 | 270,045 |
Canada | ' |
Goodwill [Roll Forward] | ' |
Balance as of June 28, 2014 | 63,169 |
Foreign currency translation and other | -2,581 |
Balance as of September 27, 2014 | $60,588 |
LongTerm_Debt_Amount_of_LongTe
Long-Term Debt - Amount of Long-Term Debt (Detail) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Borrowings under $250M Revolver | $69,000 | $65,925 |
Borrowings under $50M A/R Line | 25,075 | 25,075 |
Capital leases and other | 678 | 1,022 |
Long-term debt including current maturities | 269,753 | 267,022 |
Less current maturities | -621 | -792 |
Total long-term debt | 269,132 | 266,230 |
Variable interest rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowings under $75M Variable Rate Notes and $100M Fixed Rate Notes | 75,000 | 75,000 |
Fixed interest rate [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowings under $75M Variable Rate Notes and $100M Fixed Rate Notes | $100,000 | $100,000 |
LongTerm_Debt_Material_Covenan
Long-Term Debt - Material Covenants Required by Terms of This Facility (Detail) (Revolving Credit Facility, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 27, 2014 |
Revolving Credit Facility | ' |
Debt Instrument [Line Items] | ' |
Maximum Leverage Ratio (Debt/EBITDA), Required (ratio) | 3.5 |
Maximum Leverage Ratio (Debt/EBITADA), Actual | 2.12 |
Minimum Interest Coverage Ratio (EBITDA/Interest Expense), Required (ratio) | 3 |
Minimum Interest Coverage Ratio (EBITDA/Interest Expense), Actual | 21.34 |
Minimum Net Worth, Required | $358,999 |
Minimum Net Worth, Actual | $378,300 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 | Sep. 27, 2014 |
In Thousands, unless otherwise specified | Unsecured private placement notes | Unsecured Debt [Member] | Unsecured revolving credit facility | Secured Revolving Credit Facility [Member] | Minimum | Maximum | Unsecured Senior Notes 1 [Member] | Unsecured Senior Notes 2 [Member] | ||
Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured Debt [Member] | Unsecured Debt [Member] | |||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | $250,000 | $50,000 | ' | ' | ' | ' |
Debt facility expiration date | ' | ' | ' | ' | 7-Mar-17 | 27-Sep-16 | ' | ' | ' | ' |
Interest rate spread on notes (in percent) | ' | ' | 0.60% | ' | ' | 0.75% | 1.00% | 2.00% | ' | ' |
Interest Rate on Letters of Credit Outstanding | ' | ' | ' | ' | ' | 0.80% | ' | ' | ' | ' |
Borrowings outstanding under the revolving credit facility | 69,000 | 65,925 | ' | ' | 69,000 | 25,075 | ' | ' | ' | ' |
Letters of credit sub-limit | ' | ' | ' | ' | 50,000 | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | 636 | 24,925 | ' | ' | ' | ' |
Fee payment on unused credit balances, percentage | ' | ' | ' | ' | 0.20% | 0.26% | ' | ' | ' | ' |
Effective date of debt amendment, latest | ' | ' | ' | ' | 30-Jun-15 | ' | ' | ' | ' | ' |
Long-term debt, notes | ' | ' | 75,000 | 100,000 | ' | ' | ' | ' | 50,000 | 50,000 |
Debt instrument, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | 3.73% | 3.88% |
Long-term debt maturities | ' | ' | 30-Jun-15 | ' | ' | ' | ' | ' | 15-Apr-23 | 15-Apr-25 |
Outstanding balance, notes | ' | ' | $75,000 | $100,000 | ' | ' | ' | ' | ' | ' |
Effective interest rate (in percent) | ' | ' | 0.83% | 3.81% | 1.38% | 0.90% | ' | ' | ' | ' |
Line of credit facility, 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. | 'We pay interest at a rate per annum equal to a margin of 0.75%, plus LIBOR. | ' | ' | ' | ' |
Debt Instrument, description of variable rate basis | ' | ' | 'The notes bear interest at 0.60% over LIBOR | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, frequency of periodic payment | ' | ' | 'The notes do not require principal payments until maturity | ' | ' | ' | ' | ' | ' | ' |
Other_Assets_and_Other_Noncurr2
Other Assets and Other Noncurrent Liabilities - Other Assets (Details) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Executive deferred compensation plan assets | $33,499 | $32,667 |
Cash surrender value of life insurance policies | 14,286 | 14,287 |
Customer contracts and non-competition agreements, net | 5,905 | 6,448 |
Other assets | 10,424 | 10,603 |
Less portion classified as current assets | -2,492 | -2,177 |
Total other assets | $61,622 | $61,828 |
Other_Assets_and_Other_Noncurr3
Other Assets and Other Noncurrent Liabilities - Other Intangible Assets (Details) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' |
Customer contracts and non-competition agreements | $21,375 | $23,838 |
Accumulated amortization | -15,470 | -17,390 |
Net | $5,905 | $6,448 |
Other_Assets_and_Other_Noncurr4
Other Assets and Other Noncurrent Liabilities - Estimated Amortization Expense (Details) (USD $) | Sep. 27, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' |
2015 remaining | $1,376 |
2016 | 1,391 |
2017 | 1,192 |
2018 | 410 |
2019 | 176 |
2020 | $164 |
Other_Assets_and_Other_Noncurr5
Other Assets and Other Noncurrent Liabilities - Other Noncurrent Liabilities (Details) (USD $) | Sep. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Other Liabilities, Noncurrent [Abstract] | ' | ' |
Multi-employer pension withdrawal liability | $28,068 | $28,516 |
Pension plan liability | 15,078 | 15,422 |
Executive deferred compensation plan liability | 30,860 | 30,584 |
Supplemental executive retirement plan liability | 16,765 | 16,814 |
Accrued income taxes | 11,277 | 12,043 |
Workers' compensation liability | 14,544 | 14,837 |
Other liabilities | 3,931 | 3,477 |
Total other noncurrent liabilities | $120,523 | $121,693 |
Other_Assets_and_Other_Non_Cur
Other Assets and Other Non Current Liabilities - Additional Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Weighted average life of customer contracts | '11 years | ' |
Amortization Expense | $563 | $772 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Aug. 23, 2012 | Aug. 23, 2012 | Aug. 23, 2012 |
Target | Maximum | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Total compensation expense related to share-based awards | $1,773 | $1,851 | ' | ' | ' |
Number of options exercised and restricted stock vested (in shares) | 136,000 | ' | ' | ' | ' |
Number of shares of performance based restricted stock award (in shares) | ' | ' | 100,000 | 150,000 | 50,000 |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Pension Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Interest cost | $1,012 | $992 |
Expected return on assets | -1,226 | -1,159 |
Amortization of net loss | 504 | 409 |
Net periodic pension cost | 290 | 242 |
Supplemental Executive Retirement Plan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Interest cost | 185 | 189 |
Expected return on assets | 0 | 0 |
Amortization of net loss | 98 | 36 |
Net periodic pension cost | $283 | $225 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Mar. 29, 2014 | Sep. 28, 2013 |
Multiemployer_pension_plans | |||
Multiemployer Plans [Line Items] | ' | ' | ' |
Employer contribution for pension plan | $145 | ' | ' |
Demand notice aggregate payments of multiemployer plan withdrawal liability | ' | ' | 56,000 |
Period of payment of withdrawal liability (in years) | ' | ' | '20 years |
Demand notice multiemployer plan withdrawal liability | ' | ' | 35,100 |
Aggregate payments of multiemployer pension plan withdrawal liability | ' | ' | 34,500 |
Discount rate (in percent) | ' | ' | 5.25% |
Multi-employer plan withdrawal liability | ' | ' | 23,500 |
Accretion expense | ' | ' | 113 |
Pension withdrawal and associated expenses | 0 | 8,167 | 1,687 |
Payments made to the Central States Fund | $700 | ' | $0 |
Number of remaining other MEPPs | 4 | ' | ' |
Number of MEPPs pending negotiations | 1 | ' | ' |
Number of MEPPs we are finalizing withdrawal | 3 | ' | ' |
Number of MEPPs we have received a formal demand notice | 1 | ' | ' |
Number of MEPPs with updated underfunded liability | 1 | ' | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended | |
Sep. 27, 2014 | Sep. 28, 2013 | |
Segment | ||
Segment Reporting, Measurement Disclosures [Abstract] | ' | ' |
Number of operating segments (in numbers) | 2 | ' |
Maximum percentage of revenue from one single customer (in percent) | 2.00% | 2.00% |
Segment_Information_Financial_
Segment Information - Financial Information by Segment (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | Jun. 28, 2014 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | $230,242 | $220,223 | ' |
Income from continuing operations | 26,850 | 23,569 | ' |
Total assets | 922,171 | 908,242 | 923,519 |
Depreciation and amortization expense | 7,891 | 7,631 | ' |
United States | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 194,397 | 184,202 | ' |
Income from continuing operations | 22,806 | 20,640 | ' |
Total assets | 867,757 | 842,207 | ' |
Depreciation and amortization expense | 6,895 | 6,529 | ' |
Canada | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 35,845 | 36,021 | ' |
Income from continuing operations | 4,044 | 2,929 | ' |
Total assets | 164,244 | 164,095 | ' |
Depreciation and amortization expense | 996 | 1,102 | ' |
Eliminations | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 0 | 0 | ' |
Income from continuing operations | 0 | 0 | ' |
Total assets | -109,830 | -98,060 | ' |
Depreciation and amortization expense | $0 | $0 | ' |
Share_Repurchase_Additional_In
Share Repurchase - Additional Information (Detail) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 | 31-May-08 | 31-May-07 |
Disclosure Share Repurchase Additional Information [Abstract] | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $175,000 | ' | $175,000 | $100,000 |
Stock repurchase program, shares repurchased | 65,200 | 40,219 | ' | ' |
Stock repurchase program, repurchased amount | 3,641 | 2,183 | ' | ' |
Stock repurchase program, remaining authorized repurchase amount | $42,523 | ' | ' | ' |
Other_Comprehensive_Income_Cha
Other Comprehensive Income - Changes in accumulated other comprehensive income, net of tax (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss) beginning balance | $3,987 | $9,389 |
Other comprehensive income (loss) before reclassifications | -5,393 | 2,575 |
Reclassifications from net accumulated other comprehensive income | 466 | 364 |
Net current period other comprehensive income (loss) | -4,927 | 2,939 |
Accumulated other comprehensive income (loss) ending balance | -940 | 12,328 |
Foreign currency translation adjustment [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss) beginning balance | 22,682 | 24,093 |
Other comprehensive income (loss) before reclassifications | -5,388 | 2,684 |
Reclassifications from net accumulated other comprehensive income | 0 | 0 |
Net current period other comprehensive income (loss) | -5,388 | 2,684 |
Accumulated other comprehensive income (loss) ending balance | 17,294 | 26,777 |
Pension benefit liability [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss) beginning balance | -19,748 | -15,650 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Reclassifications from net accumulated other comprehensive income | 381 | 283 |
Net current period other comprehensive income (loss) | 381 | 283 |
Accumulated other comprehensive income (loss) ending balance | -19,367 | -15,367 |
Derivative financial instruments [Member] | ' | ' |
Accumulated Other Comprehensive Income Loss [Roll Forward] | ' | ' |
Accumulated other comprehensive income (loss) beginning balance | 1,053 | 946 |
Other comprehensive income (loss) before reclassifications | -5 | -109 |
Reclassifications from net accumulated other comprehensive income | 85 | 81 |
Net current period other comprehensive income (loss) | 80 | -28 |
Accumulated other comprehensive income (loss) ending balance | $1,133 | $918 |
Other_Comprehensive_Income_Rec
Other Comprehensive Income - Reclassification from accumulated other comprehensive income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Interest rate swap contracts | $1,795 | $1,581 |
Tax benefit | 8,687 | 8,378 |
Total amounts reclassified, net of tax | 16,368 | 13,610 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Total amounts reclassified, net of tax | 466 | 364 |
Pension benefit liability [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Amortization of net loss | 609 | 453 |
Tax benefit | -228 | -170 |
Total amounts reclassified, net of tax | 381 | 283 |
Interest Rate Swap [Member] | Derivative financial instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' |
Interest rate swap contracts | 138 | 129 |
Tax benefit | -53 | -48 |
Total amounts reclassified, net of tax | $85 | $81 |
Discontinued_Operations_Financ
Discontinued Operations - Financial Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 27, 2014 | Sep. 28, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Rental and direct sales revenue | $0 | $9,070 |
Income before income taxes | 0 | 361 |
Income, net of tax | 0 | 211 |
Loss on sale and other adjustments, net of tax | 0 | 0 |
Net income from discontinued operations | $0 | $211 |