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Share Name | Share Symbol | Market | Type |
---|---|---|---|
G&K Services, Inc. | NASDAQ:GK | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 97.49 | 97.49 | 97.51 | 0 | 01:00:00 |
MINNESOTA
|
|
41-0449530
|
(State of incorporation)
|
|
(I.R.S. Employer Identification No.)
|
Title of Each Class
|
|
Name of Each Exchange on which Registered
|
Class A Common Stock (par value $0.50 per share)
|
|
The NASDAQ Stock Market LLC
|
Large accelerated filer
|
o
|
Accelerated filer
|
x
|
Non-accelerated filer
|
o
(do not check if a smaller reporting company)
|
Smaller reporting company
|
o
|
|
PAGE
|
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|
|
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|
|
|
|
|
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|
ITEM 1.
|
BUSINESS
|
•
|
Image – work apparel helps companies project a professional image through their employees and frame the perception of credibility, knowledge, trust and quality to their customers. Employees in uniform are perceived as trained, competent and dependable.
|
•
|
Organization safety and security – uniforms and work apparel help identify employees working for a particular company or department.
|
•
|
Brand awareness – branded work apparel promotes a company's brand identity and allows employees in uniform to help convey a company's image.
|
•
|
Employee retention – work apparel enhances worker morale and helps build teamwork in addition to providing a tangible employee benefit.
|
•
|
Employee protection – work apparel helps protect employees from difficult environments such as heavy soils, heat, flame or chemicals.
|
•
|
Product protection – work apparel and facility services help protect products against sources of contamination in the food, pharmaceutical, and health care industries.
|
ITEM 1A.
|
RISK FACTORS
|
•
|
changes in business and economic conditions, including downturns in specific industry segments and/or the overall economy;
|
•
|
changes in consumer confidence caused by changes in market conditions, including changes in the credit market, expectations for inflation, and energy prices;
|
•
|
competitive pressures, including pricing pressures, from companies that have competing products and services;
|
•
|
changes in customer needs;
|
•
|
changes in our customers' employment levels, which impacts the number of users of our products and services;
|
•
|
strategic actions taken by our competitors; and
|
•
|
market acceptance of our products and services.
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 5.
|
MARKET FOR REGISTRANT'S COMMON STOCK, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
High
|
|
Low
|
||||
Fiscal 2013
|
|
|
|
||||
1st Quarter
|
$
|
34.17
|
|
|
$
|
30.08
|
|
2nd Quarter
|
36.71
|
|
|
29.80
|
|
||
3rd Quarter
|
45.83
|
|
|
33.39
|
|
||
4th Quarter
|
50.02
|
|
|
42.57
|
|
||
|
|
|
|
||||
Fiscal 2012
|
|
|
|
||||
1st Quarter
|
$
|
36.54
|
|
|
$
|
25.17
|
|
2nd Quarter
|
31.44
|
|
|
24.24
|
|
||
3rd Quarter
|
34.99
|
|
|
28.95
|
|
||
4th Quarter
|
38.65
|
|
|
28.38
|
|
Plan Category
|
Number of Securities to
be Issued Upon Exercise
of Outstanding Options,
Warrants and Rights
(A)
|
|
Weighted-Average
Exercise Price of
Outstanding Options,
Warrants and Rights
(B)
|
|
Number of Securities Remaining
Available for Future Issuance
Under Equity Compensation Plans
(Excluding Securities Reflected
in Column (A))
|
||||
Equity compensation plans approved by security holders (1):
|
|
|
|
|
|
||||
Restated Equity Incentive Plan (2010) (2)
|
1,047,784
|
|
(3)
|
$
|
23.71
|
|
(4)
|
803,378
|
|
Employee Plans (5)
|
131,849
|
|
|
32.43
|
|
|
—
|
|
|
1996 Directors’ Stock Option Plan
|
22,000
|
|
|
33.40
|
|
|
—
|
|
|
Total:
|
1,201,633
|
|
|
$
|
25.01
|
|
|
803,378
|
|
Equity compensation plans not approved by security holders:
|
|
|
|
|
|
||||
None
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
1,201,633
|
|
|
$
|
25.01
|
|
|
803,378
|
|
(1)
|
See
Note 10, "Stockholders' Equity"
of the Notes to the Consolidated Financial Statements.
|
(2)
|
Our Restated Equity Incentive Plan (2010) was approved at our November 4, 2010 annual meeting of shareholders. The outstanding shares listed for this plan include the initial shares authorized under our 2006 Equity Incentive Plan, as well as the additional shares authorized when the restated plan was approved.
|
(3)
|
Includes 897,784 outstanding options and 150,000 performance based restricted stock awards, which assumes the maximum number of performance share awards that may be earned.
|
(4)
|
The weighted-average exercise price does not include the performance shares discussed in note 3 above.
|
(5)
|
Includes our 1998 Stock Option and Compensation Plan.
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
||||||||||
Revenues
|
$
|
907,728
|
|
|
$
|
869,937
|
|
|
$
|
828,861
|
|
|
$
|
833,592
|
|
|
$
|
935,965
|
|
Net Income (Loss)
|
46,720
|
|
|
24,147
|
|
|
33,160
|
|
|
28,612
|
|
|
(72,464
|
)
|
|||||
Per Share Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings (loss) per share
|
2.43
|
|
|
1.31
|
|
|
1.81
|
|
|
1.56
|
|
|
(3.94
|
)
|
|||||
Diluted earnings (loss) per share
|
2.38
|
|
|
1.29
|
|
|
1.79
|
|
|
1.56
|
|
|
(3.94
|
)
|
|||||
Dividends per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Regular
|
0.780
|
|
|
0.585
|
|
|
0.380
|
|
|
0.300
|
|
|
0.280
|
|
|||||
Special
|
—
|
|
|
6.00
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total Assets
|
897,286
|
|
|
873,731
|
|
|
865,920
|
|
|
813,868
|
|
|
857,292
|
|
|||||
Long-Term Debt
|
175,000
|
|
|
218,018
|
|
|
95,188
|
|
|
160,398
|
|
|
224,781
|
|
|||||
Stockholders' Equity
|
467,008
|
|
|
403,059
|
|
|
514,906
|
|
|
466,896
|
|
|
437,356
|
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Percentage of Revenues
|
|
Percentage Change
Between Years
|
|||||||||||
|
Years Ended
|
|
FY 2013 vs.
|
|
FY 2012 vs.
|
|||||||||
|
Fiscal 2013
|
|
Fiscal 2012
|
|
Fiscal 2011
|
|
FY 2012
|
|
FY 2011
|
|||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|||||
Rental operations
|
91.8
|
%
|
|
91.4
|
%
|
|
91.7
|
%
|
|
4.8
|
%
|
|
4.6
|
%
|
Direct sales
|
8.2
|
|
|
8.6
|
|
|
8.3
|
|
|
(0.3
|
)
|
|
9.0
|
|
Total revenues
|
100.0
|
|
|
100.0
|
|
|
100.0
|
|
|
4.3
|
|
|
5.0
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|||||
Cost of rental operations
|
67.5
|
|
|
69.1
|
|
|
68.0
|
|
|
2.4
|
|
|
6.4
|
|
Cost of direct sales
|
79.4
|
|
|
77.5
|
|
|
74.1
|
|
|
2.1
|
|
|
14.1
|
|
Total cost of sales
|
68.5
|
|
|
69.8
|
|
|
68.5
|
|
|
2.4
|
|
|
7.1
|
|
Pension withdrawal and associated expenses
|
—
|
|
|
2.8
|
|
|
—
|
|
|
(100.0
|
)
|
|
—
|
|
Selling and administrative
|
22.9
|
|
|
22.5
|
|
|
23.7
|
|
|
6.0
|
|
|
—
|
|
Income from operations
|
8.6
|
|
|
4.9
|
|
|
7.9
|
|
|
84.6
|
|
|
(35.3
|
)
|
Interest expense
|
0.5
|
|
|
0.7
|
|
|
1.2
|
|
|
(20.0
|
)
|
|
(40.6
|
)
|
Income before income taxes
|
8.1
|
|
|
4.2
|
|
|
6.7
|
|
|
102.2
|
|
|
(34.4
|
)
|
Provision for income taxes
|
2.9
|
|
|
1.4
|
|
|
2.7
|
|
|
119.6
|
|
|
(45.2
|
)
|
Net income
|
5.1
|
%
|
|
2.8
|
%
|
|
4.0
|
%
|
|
93.5
|
%
|
|
(27.2
|
)%
|
|
Required
|
|
Actual
|
||||
Maximum Leverage Ratio (Debt/EBITDA)
|
3.50
|
|
|
1.60
|
|
||
Minimum Interest Coverage Ratio (EBITDA/Interest Expense)
|
3.00
|
|
|
25.91
|
|
||
Minimum Net Worth
|
$
|
377.8
|
|
|
$
|
467.0
|
|
|
Less than
one year
|
|
One to three
years
|
|
Three to
five years
|
|
After five
years
|
|
Total
|
||||||||||
$250M Revolver
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$50M A/R Line
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
$75M Variable Rate Notes
|
—
|
|
|
75,000
|
|
|
—
|
|
|
—
|
|
|
75,000
|
|
|||||
$100M Fixed Rate Notes
|
—
|
|
|
—
|
|
|
—
|
|
|
100,000
|
|
|
100,000
|
|
|||||
Other debt arrangements, including capital leases
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
Operating leases
|
27,814
|
|
|
39,037
|
|
|
21,514
|
|
|
16,806
|
|
|
105,171
|
|
|||||
Multi-employer pension payments (including interest)
|
2,405
|
|
|
5,758
|
|
|
4,125
|
|
|
21,412
|
|
|
33,700
|
|
|||||
Retirement benefit payments
|
2,903
|
|
|
6,310
|
|
|
7,395
|
|
|
24,020
|
|
|
40,628
|
|
|||||
Estimated interest payments related to credit facilities
|
5,812
|
|
|
9,880
|
|
|
8,710
|
|
|
22,684
|
|
|
47,086
|
|
|||||
Total contractual cash obligations
|
$
|
38,952
|
|
|
$
|
135,985
|
|
|
$
|
41,744
|
|
|
$
|
184,922
|
|
|
$
|
401,603
|
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
(Unaudited)
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
2013
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
222,428
|
|
|
$
|
229,174
|
|
|
$
|
226,631
|
|
|
$
|
229,495
|
|
Gross Profit
|
69,423
|
|
|
71,852
|
|
|
71,405
|
|
|
73,160
|
|
||||
Income from Operations
|
19,548
|
|
|
22,856
|
|
|
21,307
|
|
|
14,323
|
|
||||
Net Income
|
11,894
|
|
|
13,221
|
|
|
13,582
|
|
|
8,023
|
|
||||
Basic Earnings per Share
|
0.63
|
|
|
0.69
|
|
|
0.70
|
|
|
0.41
|
|
||||
Diluted Earnings per Share
|
0.62
|
|
|
0.68
|
|
|
0.69
|
|
|
0.40
|
|
||||
Dividends per Share
|
0.195
|
|
|
0.195
|
|
|
0.195
|
|
|
0.195
|
|
||||
2012
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
209,723
|
|
|
$
|
217,064
|
|
|
$
|
218,809
|
|
|
$
|
224,341
|
|
Gross Profit
|
64,221
|
|
|
64,462
|
|
|
64,712
|
|
|
68,984
|
|
||||
Income (Loss) from Operations
|
15,475
|
|
|
16,954
|
|
|
(9,582
|
)
|
|
19,424
|
|
||||
Net Income (Loss)
|
8,293
|
|
|
9,466
|
|
|
(4,800
|
)
|
|
11,188
|
|
||||
Basic Earnings (Loss) per Share
|
0.45
|
|
|
0.51
|
|
|
(0.26
|
)
|
|
0.60
|
|
||||
Diluted Earnings (Loss) per Share
|
0.45
|
|
|
0.51
|
|
|
(0.26
|
)
|
|
0.59
|
|
||||
Dividends per Share:
|
|
|
|
|
|
|
|
||||||||
Regular
|
0.130
|
|
|
0.130
|
|
|
0.130
|
|
|
0.195
|
|
||||
Special
|
—
|
|
|
—
|
|
|
—
|
|
|
6.00
|
|
/s/ Douglas A. Milroy
|
Douglas A. Milroy
|
Chief Executive Officer and Director
|
(Principal Executive Officer)
|
/s/ Jeffrey L. Wright
|
Jeffrey L. Wright
|
Executive Vice President, Chief Financial Officer and Director
|
(Principal Financial Officer)
|
/s/ Thomas J. Dietz
|
Thomas J. Dietz
|
Vice President and Controller
|
(Principal Accounting Officer)
|
/s/ Ernst & Young LLP
|
Ernst & Young LLP
|
/s/ Ernst & Young LLP
|
Ernst & Young LLP
|
|
For the Fiscal Years Ended
|
||||||||||
(In thousands, except per share data)
|
June 29,
2013 |
|
June 30,
2012 |
|
July 2,
2011 |
||||||
Revenues
|
|
|
|
|
|
||||||
Rental operations
|
$
|
833,185
|
|
|
$
|
795,199
|
|
|
$
|
760,304
|
|
Direct sales
|
74,543
|
|
|
74,738
|
|
|
68,557
|
|
|||
Total revenues
|
907,728
|
|
|
869,937
|
|
|
828,861
|
|
|||
Operating Expenses
|
|
|
|
|
|
||||||
Cost of rental operations
|
562,720
|
|
|
549,622
|
|
|
516,631
|
|
|||
Cost of direct sales
|
59,168
|
|
|
57,936
|
|
|
50,779
|
|
|||
Pension withdrawal and associated expenses
|
—
|
|
|
24,004
|
|
|
—
|
|
|||
Selling and administrative
|
207,806
|
|
|
196,104
|
|
|
196,076
|
|
|||
Total operating expenses
|
829,694
|
|
|
827,666
|
|
|
763,486
|
|
|||
Income from Operations
|
78,034
|
|
|
42,271
|
|
|
65,375
|
|
|||
Interest expense
|
4,864
|
|
|
6,082
|
|
|
10,240
|
|
|||
Income before Income Taxes
|
73,170
|
|
|
36,189
|
|
|
55,135
|
|
|||
Provision for income taxes
|
26,450
|
|
|
12,042
|
|
|
21,975
|
|
|||
Net Income
|
$
|
46,720
|
|
|
$
|
24,147
|
|
|
$
|
33,160
|
|
Basic Earnings per Common Share
|
$
|
2.43
|
|
|
$
|
1.31
|
|
|
$
|
1.81
|
|
Diluted Earnings per Common Share
|
$
|
2.38
|
|
|
$
|
1.29
|
|
|
$
|
1.79
|
|
Weighted average number of shares outstanding, basic
|
18,970
|
|
|
18,494
|
|
|
18,355
|
|
|||
Weighted average number of shares outstanding, diluted
|
19,292
|
|
|
18,731
|
|
|
18,497
|
|
|||
Dividends Declared per Share
|
$
|
0.780
|
|
|
$
|
6.585
|
|
|
$
|
0.380
|
|
|
For the Fiscal Years Ended
|
||||||||||
(In thousands)
|
June 29, 2013
|
|
June 30, 2012
|
|
July 2, 2011
|
||||||
Net income
|
$
|
46,720
|
|
|
$
|
24,147
|
|
|
$
|
33,160
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
||||||
Foreign currency translation adjustments, net of tax $(2,257), $0 and $0, respectively
|
(6,459
|
)
|
|
(7,175
|
)
|
|
12,525
|
|
|||
Pension benefit liabilities, net of tax $7,297, $(8,496) and $1,681, respectively
|
12,109
|
|
|
(13,582
|
)
|
|
2,618
|
|
|||
Derivative financial instruments gain (loss) recognized, net of tax $870, $(302) and $(497), respectively
|
1,462
|
|
|
(491
|
)
|
|
(791
|
)
|
|||
Derivative financial instruments loss reclassified, net of tax $227, $674 and $1,905, respectively
|
382
|
|
|
1,097
|
|
|
3,085
|
|
|||
Total other comprehensive income (loss), net of tax
|
7,494
|
|
|
(20,151
|
)
|
|
17,437
|
|
|||
Total comprehensive income
|
$
|
54,214
|
|
|
$
|
3,996
|
|
|
$
|
50,597
|
|
|
June 29,
2013 |
|
June 30,
2012 |
||||
(In thousands, except per share data)
|
|
||||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
38,590
|
|
|
$
|
19,604
|
|
Accounts receivable, less allowance for doubtful accounts of $3,135 and $2,666
|
90,989
|
|
|
93,064
|
|
||
Inventories, net
|
165,006
|
|
|
178,226
|
|
||
Other current assets
|
13,810
|
|
|
12,134
|
|
||
Current income taxes receivable
|
—
|
|
|
105
|
|
||
Total current assets
|
308,395
|
|
|
303,133
|
|
||
Property, Plant and Equipment
|
|
|
|
||||
Land
|
33,195
|
|
|
33,084
|
|
||
Buildings and improvements
|
165,621
|
|
|
162,873
|
|
||
Machinery and equipment
|
340,258
|
|
|
326,691
|
|
||
Automobiles and trucks
|
9,474
|
|
|
8,546
|
|
||
Less accumulated depreciation
|
(354,392
|
)
|
|
(343,354
|
)
|
||
Total property, plant and equipment
|
194,156
|
|
|
187,840
|
|
||
Other Assets
|
|
|
|
||||
Goodwill
|
334,393
|
|
|
325,336
|
|
||
Customer contracts and non-competition agreements, net
|
8,847
|
|
|
12,435
|
|
||
Other noncurrent assets
|
51,495
|
|
|
44,987
|
|
||
Total other assets
|
394,735
|
|
|
382,758
|
|
||
Total assets
|
$
|
897,286
|
|
|
$
|
873,731
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
41,655
|
|
|
$
|
41,358
|
|
Accrued expenses
|
|
|
|
||||
Compensation and employee benefits
|
47,224
|
|
|
43,168
|
|
||
Other
|
34,678
|
|
|
26,734
|
|
||
Deferred income taxes
|
6,729
|
|
|
8,439
|
|
||
Current maturities of long-term debt
|
18
|
|
|
206
|
|
||
Total current liabilities
|
130,304
|
|
|
119,905
|
|
||
Long-Term Debt, net of Current Maturities
|
175,000
|
|
|
218,018
|
|
||
Deferred Income Taxes
|
19,894
|
|
|
5,473
|
|
||
Accrued Income Taxes
|
9,726
|
|
|
11,339
|
|
||
Pension Withdrawal Liability
|
22,059
|
|
|
23,562
|
|
||
Other Noncurrent Liabilities
|
73,295
|
|
|
92,375
|
|
||
Total liabilities
|
430,278
|
|
|
470,672
|
|
||
Commitments and Contingencies (Notes 12 and 13)
|
|
|
|
||||
Stockholders' Equity
|
|
|
|
||||
Common stock, $0.50 par value, non-convertible Class A, 400,000 shares authorized, 19,683 and 18,900 shares issued and outstanding
|
9,842
|
|
|
9,450
|
|
||
Additional paid-in capital
|
44,872
|
|
|
20,447
|
|
||
Retained earnings
|
402,905
|
|
|
371,267
|
|
||
Accumulated other comprehensive income
|
9,389
|
|
|
1,895
|
|
||
Total stockholders' equity
|
467,008
|
|
|
403,059
|
|
||
Total liabilities and stockholders' equity
|
$
|
897,286
|
|
|
$
|
873,731
|
|
(In thousands, except per share data)
|
Shares
|
|
Class A
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income/(Loss)
|
|
Stockholders'
Equity
|
|||||||||||
Balance July 3, 2010
|
18,581
|
|
|
$
|
9,292
|
|
|
$
|
8,009
|
|
|
$
|
444,986
|
|
|
$
|
4,609
|
|
|
$
|
466,896
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
33,160
|
|
|
—
|
|
|
33,160
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,437
|
|
|
17,437
|
|
|||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
50,597
|
|
||||||||||
Issuance of common stock under stock plans, net of income tax
|
162
|
|
|
80
|
|
|
615
|
|
|
—
|
|
|
—
|
|
|
695
|
|
|||||
Equity based compensation
|
—
|
|
|
—
|
|
|
4,175
|
|
|
—
|
|
|
—
|
|
|
4,175
|
|
|||||
Shares associated with tax withholdings under our employee equity incentive plan
|
(15
|
)
|
|
(8
|
)
|
|
(344
|
)
|
|
—
|
|
|
—
|
|
|
(352
|
)
|
|||||
Cash dividends ($0.38 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,105
|
)
|
|
—
|
|
|
(7,105
|
)
|
|||||
Balance July 2, 2011
|
18,728
|
|
|
9,364
|
|
|
12,455
|
|
|
471,041
|
|
|
22,046
|
|
|
514,906
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
24,147
|
|
|
—
|
|
|
24,147
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,151
|
)
|
|
(20,151
|
)
|
|||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
3,996
|
|
||||||||||
Issuance of common stock under stock plans, net of income tax
|
202
|
|
|
101
|
|
|
2,757
|
|
|
—
|
|
|
—
|
|
|
2,858
|
|
|||||
Equity based compensation
|
—
|
|
|
—
|
|
|
6,037
|
|
|
—
|
|
|
—
|
|
|
6,037
|
|
|||||
Shares associated with tax withholdings under our employee equity incentive plan
|
(30
|
)
|
|
(15
|
)
|
|
(802
|
)
|
|
—
|
|
|
—
|
|
|
(817
|
)
|
|||||
Cash dividends ($6.585 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(123,921
|
)
|
|
—
|
|
|
(123,921
|
)
|
|||||
Balance June 30, 2012
|
18,900
|
|
|
9,450
|
|
|
20,447
|
|
|
371,267
|
|
|
1,895
|
|
|
403,059
|
|
|||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
46,720
|
|
|
—
|
|
|
46,720
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,494
|
|
|
7,494
|
|
|||||
Comprehensive income
|
|
|
|
|
|
|
|
|
|
|
54,214
|
|
||||||||||
Issuance of common stock under stock plans, net of income tax
|
807
|
|
|
404
|
|
|
19,997
|
|
|
—
|
|
|
—
|
|
|
20,401
|
|
|||||
Equity based compensation
|
—
|
|
|
—
|
|
|
5,001
|
|
|
—
|
|
|
—
|
|
|
5,001
|
|
|||||
Shares associated with tax withholdings under our employee equity incentive plan
|
(24
|
)
|
|
(12
|
)
|
|
(801
|
)
|
|
—
|
|
|
—
|
|
|
(813
|
)
|
|||||
Tax benefit related to equity based compensation
|
—
|
|
|
—
|
|
|
228
|
|
|
—
|
|
|
—
|
|
|
228
|
|
|||||
Cash dividends ($0.78 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,082
|
)
|
|
—
|
|
|
(15,082
|
)
|
|||||
Balance June 29, 2013
|
19,683
|
|
|
$
|
9,842
|
|
|
$
|
44,872
|
|
|
$
|
402,905
|
|
|
$
|
9,389
|
|
|
$
|
467,008
|
|
|
For the Fiscal Years Ended
|
||||||||||
(In thousands)
|
June 29,
2013 |
|
June 30,
2012 |
|
July 2,
2011 |
||||||
Operating Activities:
|
|
|
|
|
|
||||||
Net income
|
$
|
46,720
|
|
|
$
|
24,147
|
|
|
$
|
33,160
|
|
Adjustments to reconcile net income to net cash provided by operating activities -
|
|
|
|
|
|
||||||
Depreciation and amortization
|
32,175
|
|
|
33,983
|
|
|
37,600
|
|
|||
Deferred income taxes
|
1,059
|
|
|
2,775
|
|
|
982
|
|
|||
Share-based compensation
|
5,001
|
|
|
6,037
|
|
|
4,175
|
|
|||
Changes in current operating items, exclusive of acquisitions -
|
|
|
|
|
|
||||||
Accounts receivable and prepaid expenses
|
1,201
|
|
|
(2,237
|
)
|
|
(1,907
|
)
|
|||
Inventories
|
15,032
|
|
|
(14,481
|
)
|
|
(27,434
|
)
|
|||
Accounts payable and accrued expenses
|
12,581
|
|
|
8,975
|
|
|
21,919
|
|
|||
Other
|
(1,670
|
)
|
|
(9,929
|
)
|
|
(1,491
|
)
|
|||
Pension withdrawal liability
|
—
|
|
|
23,703
|
|
|
—
|
|
|||
Net cash provided by operating activities
|
112,099
|
|
|
72,973
|
|
|
67,004
|
|
|||
Investing Activities:
|
|
|
|
|
|
||||||
Property, plant and equipment additions, net
|
(35,524
|
)
|
|
(34,026
|
)
|
|
(20,670
|
)
|
|||
Acquisition of businesses, net of cash
|
(18,589
|
)
|
|
(1,087
|
)
|
|
—
|
|
|||
Net cash used for investing activities
|
(54,113
|
)
|
|
(35,113
|
)
|
|
(20,670
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
||||||
Repayments of long-term debt
|
(591
|
)
|
|
(729
|
)
|
|
(1,025
|
)
|
|||
Proceeds from issuance of long-term debt
|
100,000
|
|
|
—
|
|
|
—
|
|
|||
(Repayments of) Proceeds from revolving credit facilities, net
|
(143,000
|
)
|
|
81,944
|
|
|
(24,500
|
)
|
|||
Cash dividends paid
|
(15,082
|
)
|
|
(123,921
|
)
|
|
(7,105
|
)
|
|||
Net issuance of common stock, under stock option plans
|
20,401
|
|
|
2,858
|
|
|
695
|
|
|||
Purchase of common stock
|
(813
|
)
|
|
(817
|
)
|
|
(352
|
)
|
|||
Excess tax benefit from share-based compensation
|
1,068
|
|
|
—
|
|
|
—
|
|
|||
Net cash used for financing activities
|
(38,017
|
)
|
|
(40,665
|
)
|
|
(32,287
|
)
|
|||
Increase (Decrease) in Cash and Cash Equivalents
|
19,969
|
|
|
(2,805
|
)
|
|
14,047
|
|
|||
Effect of Exchange Rates on Cash
|
(983
|
)
|
|
(565
|
)
|
|
153
|
|
|||
Cash and Cash Equivalents:
|
|
|
|
|
|
||||||
Beginning of year
|
19,604
|
|
|
22,974
|
|
|
8,774
|
|
|||
End of year
|
$
|
38,590
|
|
|
$
|
19,604
|
|
|
$
|
22,974
|
|
Supplemental Cash Flow Information:
|
|
|
|
|
|
||||||
Cash paid for -
|
|
|
|
|
|
||||||
Interest
|
$
|
3,584
|
|
|
$
|
4,893
|
|
|
$
|
8,455
|
|
Income taxes
|
$
|
17,634
|
|
|
$
|
3,283
|
|
|
$
|
9,907
|
|
|
As Previously Reported
|
|
Reclassifications
|
|
As Reclassified
|
|||
Accrued expenses:
|
|
|
|
|
|
|||
Compensation and employee benefits
|
28,377
|
|
|
14,791
|
|
|
43,168
|
|
Other
|
41,525
|
|
|
(14,791
|
)
|
|
26,734
|
|
Total accrued expenses
|
69,902
|
|
|
—
|
|
|
69,902
|
|
|
June 29, 2013
|
|
June 30, 2012
|
||||
Raw Materials
|
$
|
11,583
|
|
|
$
|
14,759
|
|
Work in Process
|
1,846
|
|
|
1,640
|
|
||
Finished Goods
|
44,156
|
|
|
57,943
|
|
||
New Inventories
|
57,585
|
|
|
74,342
|
|
||
Merchandise In Service
|
107,421
|
|
|
103,884
|
|
||
Total Inventories
|
$
|
165,006
|
|
|
$
|
178,226
|
|
|
Life
(Years)
|
Automobiles and trucks
|
3 to 8
|
Machinery and equipment
|
3 to 10
|
Buildings
|
20 to 33
|
Building improvements
|
10
|
Accounts receivable and inventory
|
$
|
2,206
|
|
Property, plant and equipment
|
3,291
|
|
|
Customer lists
|
2,250
|
|
|
Accrued expenses
|
(253
|
)
|
|
Goodwill
|
10,994
|
|
|
Net assets acquired
|
$
|
18,488
|
|
|
United States
|
|
Canada
|
|
Total
|
||||||
Balance as of July 2, 2011
|
$
|
258,738
|
|
|
$
|
69,481
|
|
|
$
|
328,219
|
|
Acquisitions
|
666
|
|
|
—
|
|
|
666
|
|
|||
Foreign currency translation and other
|
(43
|
)
|
|
(3,506
|
)
|
|
(3,549
|
)
|
|||
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
|
|
|
June 29, 2013
|
|
June 30, 2012
|
||||
Customer contracts and non-competition agreements
|
$
|
125,996
|
|
|
$
|
126,018
|
|
Accumulated amortization
|
(117,149
|
)
|
|
(113,583
|
)
|
||
Net
|
$
|
8,847
|
|
|
$
|
12,435
|
|
|
2013
|
|
2012
|
||||
Borrowings under $250M Revolver
|
$
|
—
|
|
|
$
|
114,400
|
|
Borrowings under $75M Variable Rate Notes
|
75,000
|
|
|
75,000
|
|
||
Borrowings under $50M A/R Line
|
—
|
|
|
28,600
|
|
||
Borrowings under $100M Fixed Rate Notes
|
100,000
|
|
|
—
|
|
||
Capital leases and other
|
18
|
|
|
224
|
|
||
|
175,018
|
|
|
218,224
|
|
||
Less current maturities
|
(18
|
)
|
|
(206
|
)
|
||
Total long-term debt
|
$
|
175,000
|
|
|
$
|
218,018
|
|
|
Required
|
|
Actual
|
||||
Maximum Leverage Ratio (Debt/EBITDA)
|
3.50
|
|
|
1.60
|
|
||
Minimum Interest Coverage Ratio (EBITDA/Interest Expense)
|
3.00
|
|
|
25.91
|
|
||
Minimum Net Worth
|
$
|
377,808
|
|
|
$
|
467,008
|
|
2014
|
$
|
18
|
|
2015
|
—
|
|
|
2016
|
75,000
|
|
|
2017
|
—
|
|
|
2018 and thereafter
|
100,000
|
|
|
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
|
|
|
As of June 30, 2012
|
||||||||||
|
Fair Value Measurements Using Inputs Considered as
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Other assets:
|
|
|
|
|
|
||||||
Money market mutual funds
|
$
|
3,185
|
|
|
$
|
—
|
|
|
$
|
3,185
|
|
Equity and fixed income mutual funds
|
18,851
|
|
|
—
|
|
|
18,851
|
|
|||
Cash surrender value of life insurance policies
|
—
|
|
|
12,971
|
|
|
12,971
|
|
|||
Total assets
|
$
|
22,036
|
|
|
$
|
12,971
|
|
|
$
|
35,007
|
|
Accrued expenses:
|
|
|
|
|
|
||||||
Derivative financial instruments
|
$
|
—
|
|
|
$
|
1,432
|
|
|
$
|
1,432
|
|
Total liabilities
|
$
|
—
|
|
|
$
|
1,432
|
|
|
$
|
1,432
|
|
|
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
|
|
|
As of June 30, 2012
|
||||||||||
|
Fair Value Measurements Using Inputs Considered as
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Cash and cash equivalents
|
$
|
19,604
|
|
|
$
|
—
|
|
|
$
|
19,604
|
|
Total assets
|
$
|
19,604
|
|
|
$
|
—
|
|
|
$
|
19,604
|
|
Current maturities of long-term debt
|
$
|
—
|
|
|
$
|
206
|
|
|
$
|
206
|
|
Long-term debt, net of current maturities
|
—
|
|
|
218,018
|
|
|
218,018
|
|
|||
Total liabilities
|
$
|
—
|
|
|
$
|
218,224
|
|
|
$
|
218,224
|
|
|
June 29, 2013
|
|
|
June 30, 2012
|
|
||
Pension plan liability
|
$
|
12,159
|
|
|
$
|
34,237
|
|
Executive deferred compensation plan liability
|
26,775
|
|
|
22,036
|
|
||
Supplemental executive retirement plan liability
|
14,826
|
|
|
16,875
|
|
||
Workers' compensation liability
|
15,374
|
|
|
15,462
|
|
||
Other liabilities
|
4,161
|
|
|
3,765
|
|
||
Total other noncurrent liabilities
|
$
|
73,295
|
|
|
$
|
92,375
|
|
|
For the Fiscal Years
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Basic earnings per share:
|
|
|
|
|
|
||||||
Net income
|
$
|
46,720
|
|
|
$
|
24,147
|
|
|
$
|
33,160
|
|
Less: Income allocable to participating securities
|
(710
|
)
|
|
—
|
|
|
—
|
|
|||
Net income available to common stockholders
|
$
|
46,010
|
|
|
$
|
24,147
|
|
|
$
|
33,160
|
|
Weighted average shares outstanding, basic
|
18,970
|
|
|
18,494
|
|
|
18,355
|
|
|||
Basic earnings per common share
|
$
|
2.43
|
|
|
$
|
1.31
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
||||||
Diluted earnings per share:
|
|
|
|
|
|
||||||
Net income available to common stockholders
|
$
|
46,010
|
|
|
$
|
24,147
|
|
|
$
|
33,160
|
|
Weighted average shares outstanding, basic
|
18,970
|
|
|
18,494
|
|
|
18,355
|
|
|||
Weighted average effect of non-vested restricted stock grants and assumed exercise of stock options
|
322
|
|
|
237
|
|
|
142
|
|
|||
Weighted average shares outstanding, diluted
|
19,292
|
|
|
18,731
|
|
|
18,497
|
|
|||
Diluted earnings per common share
|
$
|
2.38
|
|
|
$
|
1.29
|
|
|
$
|
1.79
|
|
Asset
|
Statement of Operations Classification:
|
Amount
|
||
Inventory
|
Cost of direct sales
|
$
|
3,611
|
|
Property, plant and equipment
|
Selling and administrative
|
1,985
|
|
|
Customer contracts
|
Selling and administrative
|
1,626
|
|
|
Computer software
|
Selling and administrative
|
1,704
|
|
|
Other costs
|
Selling and administrative
|
907
|
|
|
Total restructuring and impairment charges
|
|
9,833
|
|
|
Shares
|
|
Weighted Average
Exercise Prices
|
|
Weighted Average
Remaining
Contractual Term
(in years)
|
|
Aggregate
Intrinsic Value
|
|||||
Outstanding at June 30, 2012
|
1,594
|
|
|
$
|
25.68
|
|
|
|
|
|
||
Granted
|
191
|
|
|
32.07
|
|
|
|
|
|
|||
Exercised
|
(714
|
)
|
|
28.56
|
|
|
|
|
|
|||
Forfeited or expired
|
(19
|
)
|
|
19.04
|
|
|
|
|
|
|||
Outstanding at June 29, 2013
|
1,052
|
|
|
$
|
25.01
|
|
|
6.17
|
|
$
|
23,757
|
|
Exercisable at June 29, 2013
|
674
|
|
|
$
|
25.21
|
|
|
4.90
|
|
$
|
15,098
|
|
|
Shares
|
|
Weighted-Average
Grant-Date Fair Value
|
|||
Non-vested at June 30, 2012
|
306
|
|
|
$
|
25.41
|
|
Granted
|
105
|
|
|
32.62
|
|
|
Vested
|
(103
|
)
|
|
28.12
|
|
|
Forfeited
|
(13
|
)
|
|
23.49
|
|
|
Non-vested at June 29, 2013
|
295
|
|
|
$
|
27.12
|
|
|
For the Fiscal Years
|
||||||||||
|
2013
|
|
2012
|
|
2011
|
||||||
Foreign currency translation
|
$
|
24,093
|
|
|
$
|
30,552
|
|
|
$
|
37,727
|
|
Pension benefit liabilities
|
(15,650
|
)
|
|
(27,759
|
)
|
|
(14,177
|
)
|
|||
Derivative financial instruments
|
946
|
|
|
(898
|
)
|
|
(1,504
|
)
|
|||
Accumulated other comprehensive income
|
$
|
9,389
|
|
|
$
|
1,895
|
|
|
$
|
22,046
|
|
Fiscal Years
|
2013
|
|
2012
|
|
2011
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
16,325
|
|
|
$
|
3,250
|
|
|
$
|
(1,447
|
)
|
State and local
|
3,413
|
|
|
1,163
|
|
|
949
|
|
|||
Foreign
|
5,653
|
|
|
4,854
|
|
|
4,861
|
|
|||
|
25,391
|
|
|
9,267
|
|
|
4,363
|
|
|||
Deferred
|
1,059
|
|
|
2,775
|
|
|
17,612
|
|
|||
Provision for Income Taxes
|
$
|
26,450
|
|
|
$
|
12,042
|
|
|
$
|
21,975
|
|
Fiscal Years
|
2013
|
|
2012
|
|
2011
|
|||
United States statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State taxes, net of federal tax benefit
|
3.8
|
|
|
2.8
|
|
|
2.7
|
|
Foreign earnings taxed at different rates
|
(0.4
|
)
|
|
(2.8
|
)
|
|
1.1
|
|
Change in tax contingency reserve
|
(1.7
|
)
|
|
2.8
|
|
|
0.4
|
|
Share-based compensation
|
—
|
|
|
0.1
|
|
|
0.6
|
|
Disposition of subsidiary
|
—
|
|
|
(3.8
|
)
|
|
—
|
|
Permanent differences and other, net
|
(0.6
|
)
|
|
(0.8
|
)
|
|
0.1
|
|
Effective income tax rate
|
36.1
|
%
|
|
33.3
|
%
|
|
39.9
|
%
|
Fiscal Years
|
2013
|
|
2012
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Inventory
|
$
|
(18,190
|
)
|
|
$
|
(20,699
|
)
|
Depreciation
|
(18,819
|
)
|
|
(20,182
|
)
|
||
Intangibles
|
(44,757
|
)
|
|
(40,944
|
)
|
||
Derivative financial instruments
|
(563
|
)
|
|
—
|
|
||
Other
|
(2,707
|
)
|
|
(14
|
)
|
||
Total deferred tax liabilities
|
(85,036
|
)
|
|
(81,839
|
)
|
||
Deferred tax assets:
|
|
|
|
||||
Compensation and employees benefits
|
44,577
|
|
|
47,367
|
|
||
Accruals and reserves
|
9,208
|
|
|
13,127
|
|
||
Share-based payments
|
3,778
|
|
|
5,645
|
|
||
Derivative financial instruments
|
—
|
|
|
552
|
|
||
Other
|
5,293
|
|
|
5,955
|
|
||
Gross deferred tax assets
|
62,856
|
|
|
72,646
|
|
||
Less valuation allowance
|
(3,876
|
)
|
|
(4,719
|
)
|
||
Total deferred tax assets
|
58,980
|
|
|
67,927
|
|
||
Net deferred tax liabilities
|
$
|
(26,056
|
)
|
|
$
|
(13,912
|
)
|
Fiscal Years
|
2013
|
|
2012
|
||||
Beginning balance
|
$
|
11,328
|
|
|
$
|
14,157
|
|
Tax positions related to current year:
|
|
|
|
||||
Gross increase
|
1,550
|
|
|
2,068
|
|
||
Gross decrease
|
—
|
|
|
—
|
|
||
Tax positions related to prior years:
|
|
|
|
||||
Gross increase
|
170
|
|
|
1,605
|
|
||
Gross decrease
|
(161
|
)
|
|
(3,599
|
)
|
||
Settlements
|
(2,147
|
)
|
|
(47
|
)
|
||
Lapses in statutes of limitations
|
(1,402
|
)
|
|
(2,856
|
)
|
||
Ending balance
|
$
|
9,338
|
|
|
$
|
11,328
|
|
|
Pension Plan
|
|
SERP
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Change in benefit obligation:
|
|
|
|
|
|
|
|
||||||||
Projected benefit obligation, beginning of year
|
$
|
88,029
|
|
|
$
|
67,766
|
|
|
$
|
17,576
|
|
|
$
|
14,436
|
|
Service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Interest cost
|
3,738
|
|
|
3,807
|
|
|
688
|
|
|
774
|
|
||||
Actuarial loss/(gain)
|
(12,852
|
)
|
|
18,560
|
|
|
(2,057
|
)
|
|
3,008
|
|
||||
Benefits paid
|
(2,157
|
)
|
|
(2,104
|
)
|
|
(659
|
)
|
|
(642
|
)
|
||||
Projected benefit obligation, end of year
|
$
|
76,758
|
|
|
$
|
88,029
|
|
|
$
|
15,548
|
|
|
$
|
17,576
|
|
Change in plan assets:
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets, beginning of year
|
$
|
53,792
|
|
|
$
|
45,359
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Actual return on plan assets
|
4,881
|
|
|
2,164
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
8,083
|
|
|
8,373
|
|
|
659
|
|
|
642
|
|
||||
Benefits paid
|
(2,157
|
)
|
|
(2,104
|
)
|
|
(659
|
)
|
|
(642
|
)
|
||||
Fair value of plan assets, end of year
|
$
|
64,599
|
|
|
$
|
53,792
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Funded status-net amount recognized
|
$
|
(12,159
|
)
|
|
$
|
(34,237
|
)
|
|
$
|
(15,548
|
)
|
|
$
|
(17,576
|
)
|
|
Pension Plan
|
|
SERP
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Accrued benefit liability
|
$
|
(12,159
|
)
|
|
$
|
(34,237
|
)
|
|
$
|
(15,548
|
)
|
|
$
|
(17,576
|
)
|
Net amount recognized
|
$
|
(12,159
|
)
|
|
$
|
(34,237
|
)
|
|
$
|
(15,548
|
)
|
|
$
|
(17,576
|
)
|
|
|
|
|
|
|
|
|
||||||||
|
Pension Plan
|
|
SERP
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Accumulated other comprehensive loss/(gain) related to:
|
|
|
|
|
|
|
|
||||||||
Unrecognized net actuarial losses/(gains)
|
$
|
(16,817
|
)
|
|
$
|
18,818
|
|
|
$
|
(2,458
|
)
|
|
$
|
2,917
|
|
|
Pension Plan
|
|
SERP
|
||||||||||||||||||||
|
2013
|
|
2012
|
|
2011
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Interest cost
|
3,738
|
|
|
3,807
|
|
|
3,697
|
|
|
688
|
|
|
774
|
|
|
711
|
|
||||||
Expected return on assets
|
(4,227
|
)
|
|
(3,905
|
)
|
|
(3,124
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of net loss
|
3,312
|
|
|
1,482
|
|
|
2,048
|
|
|
401
|
|
|
92
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
2,823
|
|
|
$
|
1,384
|
|
|
$
|
2,621
|
|
|
$
|
1,089
|
|
|
$
|
866
|
|
|
$
|
711
|
|
|
Pension Plan
|
|
SERP
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||
Discount rate
|
5.25
|
%
|
|
4.30
|
%
|
|
5.00
|
%
|
|
4.00
|
%
|
Rate of compensation increase
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Pension Plan
|
|
SERP
|
||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||
Discount rate
|
4.30
|
%
|
|
5.70
|
%
|
|
4.00
|
%
|
|
5.50
|
%
|
Expected return on plan assets
|
7.50
|
|
|
7.75
|
|
|
N/A
|
|
|
N/A
|
|
Rate of compensation increase
|
N/A
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
Target Asset
Allocations
|
|
Actual Asset
Allocations
|
|||||
|
2013
|
|
2013
|
|
2012
|
|||
International equity
|
8 - 18%
|
|
|
13.6
|
%
|
|
10.8
|
%
|
Large cap equity
|
20 - 40
|
|
|
31.2
|
|
|
31.7
|
|
Small cap equity
|
3 - 13
|
|
|
8.1
|
|
|
6.9
|
|
Absolute return strategy funds
|
10 - 20
|
|
|
15.8
|
|
|
13.7
|
|
Fixed income
|
20 - 30
|
|
|
22.9
|
|
|
27.4
|
|
Long/short equity fund
|
5 - 15
|
|
|
8.4
|
|
|
9.5
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
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
|
|
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total
|
||||||||
Interest-bearing cash
|
$
|
597
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
597
|
|
Common stock
|
5,575
|
|
|
—
|
|
|
—
|
|
|
5,575
|
|
||||
Common/collective trusts
|
—
|
|
|
4,060
|
|
|
12,132
|
|
|
16,192
|
|
||||
Registered investment companies
|
31,428
|
|
|
—
|
|
|
—
|
|
|
31,428
|
|
||||
Total
|
$
|
37,600
|
|
|
$
|
4,060
|
|
|
$
|
12,132
|
|
|
$
|
53,792
|
|
|
2013
|
|
2012
|
||||
Balance at beginning of the year
|
$
|
12,132
|
|
|
$
|
—
|
|
Realized gains
|
(708
|
)
|
|
—
|
|
||
Net unrealized gains
|
736
|
|
|
207
|
|
||
Net purchases, issuances and settlements
|
(8,067
|
)
|
|
7,693
|
|
||
Reclassifications
|
—
|
|
|
4,232
|
|
||
Balance at end of the year
|
$
|
4,093
|
|
|
$
|
12,132
|
|
|
Pension Plan
|
|
SERP
|
||||
2014
|
$
|
2,181
|
|
|
$
|
722
|
|
2015
|
2,319
|
|
|
750
|
|
||
2016
|
2,468
|
|
|
773
|
|
||
2017
|
2,694
|
|
|
822
|
|
||
2018
|
2,984
|
|
|
895
|
|
||
2019 and thereafter
|
18,940
|
|
|
5,080
|
|
•
|
Assets contributed to the multi-employer plan 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 multi-employer pension plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
|
|
EIN - PN
|
|
Pension Protection Act zone
status
|
|
G&K Services 5% of total plan
contributions
|
|
FIP/RP status
pending/implemented
|
||||
Pension fund
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|||
Central States Southeast and Southwest Areas Pension Fund
|
36-6044243 - 001
|
|
Red
|
|
Red
|
|
No
|
|
No
|
|
Implemented
|
|
Contributions of G&K
Services for fiscal years
|
|
Surcharge
imposed
|
|
Expiration date of
collective bargaining
agreements
|
|
Total collective
bargaining
agreements
|
|||||||||||
Pension fund
|
2013
|
|
2012
|
|
2011
|
|
||||||||||||
Central States Southeast and Southwest Areas Pension Fund
|
$
|
313
|
|
|
$
|
873
|
|
|
$
|
938
|
|
|
No
|
|
|
|
|
|
Other Funds
|
$
|
466
|
|
|
$
|
409
|
|
|
$
|
427
|
|
|
No
|
|
1/31/2014 to 7/31/2014
|
|
6
|
|
Total G&K Services contributions to U.S. multi-employer pension plans
|
$
|
779
|
|
|
$
|
1,282
|
|
|
$
|
1,365
|
|
|
|
|
|
|
|
|
Operating Leases
|
||
2014
|
$
|
23,432
|
|
2015
|
18,445
|
|
|
2016
|
14,404
|
|
|
2017
|
10,890
|
|
|
2018
|
6,752
|
|
|
2019 and thereafter
|
11,751
|
|
|
Total minimum lease payments
|
$
|
85,674
|
|
|
United
States
|
|
Canada
|
|
Elimination
|
|
Total
|
||||||||
2013
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
752,882
|
|
|
$
|
154,846
|
|
|
$
|
—
|
|
|
$
|
907,728
|
|
Income from operations
|
60,173
|
|
|
17,861
|
|
|
—
|
|
|
78,034
|
|
||||
Interest expense
|
4,864
|
|
|
—
|
|
|
—
|
|
|
4,864
|
|
||||
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
|
|
||||
Income tax expense
|
22,146
|
|
|
4,304
|
|
|
—
|
|
|
26,450
|
|
||||
2012
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
719,162
|
|
|
$
|
150,775
|
|
|
$
|
—
|
|
|
$
|
869,937
|
|
Income from operations
|
26,157
|
|
|
16,114
|
|
|
—
|
|
|
42,271
|
|
||||
Interest expense
|
6,082
|
|
|
—
|
|
|
—
|
|
|
6,082
|
|
||||
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
|
|
||||
Income tax expense
|
2,365
|
|
|
9,677
|
|
|
—
|
|
|
12,042
|
|
||||
2011
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
684,879
|
|
|
$
|
143,982
|
|
|
$
|
—
|
|
|
$
|
828,861
|
|
Income from operations
|
51,709
|
|
|
13,666
|
|
|
—
|
|
|
65,375
|
|
||||
Interest expense
|
10,209
|
|
|
31
|
|
|
—
|
|
|
10,240
|
|
||||
Total assets
|
793,863
|
|
|
146,703
|
|
|
(74,646
|
)
|
|
865,920
|
|
||||
Capital expenditures-net
|
17,847
|
|
|
2,823
|
|
|
—
|
|
|
20,670
|
|
||||
Depreciation and amortization expense
|
32,392
|
|
|
5,208
|
|
|
—
|
|
|
37,600
|
|
||||
Income tax expense
|
18,171
|
|
|
3,804
|
|
|
—
|
|
|
21,975
|
|
|
|
|
Additions
|
|
|
|
|
||||||||||||
Description
|
Balance at
Beginning of
Year
|
|
Charged to
Costs and
Expenses
|
|
Charged to
Other
Accounts
|
|
Deductions
|
|
Balance at
End of Year
|
||||||||||
Allowance for Doubtful Accounts
|
|
|
|
|
|
|
|
|
|
||||||||||
June 29, 2013
|
$
|
2,666
|
|
|
$
|
1,932
|
|
|
$
|
—
|
|
|
$
|
1,463
|
|
|
$
|
3,135
|
|
June 30, 2012
|
$
|
3,066
|
|
|
$
|
1,490
|
|
|
$
|
—
|
|
|
$
|
1,890
|
|
|
$
|
2,666
|
|
July 2, 2011
|
$
|
3,118
|
|
|
$
|
1,747
|
|
|
$
|
—
|
|
|
$
|
1,799
|
|
|
$
|
3,066
|
|
Inventory Reserve
|
|
|
|
|
|
|
|
|
|
||||||||||
June 29, 2013
|
$
|
2,754
|
|
|
$
|
4,553
|
|
|
$
|
266
|
|
|
$
|
2,386
|
|
|
$
|
5,187
|
|
June 30, 2012
|
$
|
2,036
|
|
|
$
|
1,137
|
|
|
$
|
—
|
|
|
$
|
419
|
|
|
$
|
2,754
|
|
July 2, 2011
|
$
|
2,384
|
|
|
$
|
802
|
|
|
$
|
—
|
|
|
$
|
1,150
|
|
|
$
|
2,036
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(a)
|
The following documents are filed as a part of this report:
|
(1)
|
Financial Statements
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
*
|
Filed herewith
|
**
|
Compensatory plan or arrangement
|
(b)
|
Exhibits
|
(c)
|
Financial Statement Schedules
|
Date: August 23, 2013
|
G&K SERVICES, INC.
|
||
|
(Registrant)
|
||
|
|
|
|
|
By:
|
|
/s/ Douglas A. Milroy
|
|
|
|
Douglas A. Milroy, Chief Executive Officer and Director
|
|
|
|
(Principal Executive Officer)
|
* By:
|
|
/s/ Douglas A. Milroy
|
|
|
Douglas A. Milroy
|
|
|
Attorney-in-fact
|
1 Year G&K Services, Inc. Chart |
1 Month G&K Services, Inc. Chart |
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