BUSINESS SEGMENTS:
The Company manages and evaluates its business activities based on geography and, as a result, determined that its United States and Canada businesses are its operating segments. The United States and Canada operating segments both provide a full range of uniform programs, restroom supply services and first-aid and safety products, as well as ancillary items such as floor mats, towels and linens. The Company’s operating segments are also its reportable segments. Corporate includes administrative expenses not specifically allocated to an individual segment. The CODM (the Chief Operating Officer) evaluates the performance of its reportable segments, based primarily on segment operating income, and uses this information to make strategic decisions and to allocate resources. The accounting policies of the reportable segments are the same as those described in Note 1 "Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies."
Financial information by reportable segment is as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | United States | | Canada | | Total |
| Year Ended October 3, 2025 | | | | | | |
| Revenue | | $ | 2,489,376 | | | $ | 245,463 | | | $ | 2,734,839 | |
| Cost of services provided (exclusive of depreciation and amortization) | | 1,831,811 | | | 178,271 | | | 2,010,082 | |
| Depreciation and amortization | | 131,362 | | | 10,051 | | | 141,413 | |
| Selling, general and administrative expenses | | 372,192 | | | 48,187 | | | 420,379 | |
| Reportable segment operating income | | 154,011 | | | 8,954 | | | 162,965 | |
| Corporate and other | | | | | | (98,534) | |
| Gain (Loss) on Sale of Equity Investments, net | | | | | | (2,784) | |
| Interest Expense, Net | | | | | | (92,264) | |
| Other (Expense) Income, net | | | | | | (13,689) | |
| (Loss) Income Before Income Taxes | | | | | | $ | (44,306) | |
| | | | | | |
| Capital expenditures | | $ | 54,563 | | | $ | 3,897 | | | $ | 58,460 | |
| Property and equipment - Reportable Segments | | $ | 573,709 | | | $ | 74,171 | | | $ | 647,880 | |
| - Corporate | | | | | | 15,582 | |
| - Total | | | | | | $ | 663,462 | |
| | | | | | |
| Total assets - Reportable Segments | | $ | 2,605,553 | | | $ | 263,805 | | | $ | 2,869,358 | |
| - Corporate | | | | | | 37,542 | |
| - Total | | | | | | $ | 2,906,900 | |
| | | | | | | | | | | | | | | | | | | | |
| | United States | | Canada | | Total |
| Year Ended September 27, 2024 | | | | | | |
| Revenue | | $ | 2,555,922 | | | $ | 249,898 | | | $ | 2,805,820 | |
| Cost of services provided (exclusive of depreciation and amortization) | | 1,811,089 | | | 178,783 | | | 1,989,872 | |
| Depreciation and amortization | | 129,201 | | | 11,331 | | | 140,532 | |
| Selling, general and administrative expenses | | 350,923 | | | 51,622 | | | 402,545 | |
| Reportable segment operating income | | 264,709 | | | 8,162 | | | 272,871 | |
| Corporate and other | | | | | | (114,920) | |
| Gain (Loss) on Sale of Equity Investments, net | | | | | | — | |
| Interest Expense, Net | | | | | | (126,563) | |
| Other (Expense) Income, net | | | | | | 642 | |
| Income Before Income Taxes | | | | | | $ | 32,030 | |
| | | | | | |
| Capital expenditures | | $ | 75,112 | | | $ | 3,793 | | | $ | 78,905 | |
| Property and equipment - Reportable Segments | | $ | 580,060 | | | $ | 68,138 | | | $ | 648,198 | |
| - Corporate | | | | | | 22,660 | |
| - Total | | | | | | $ | 670,858 | |
| | | | | | |
| Total assets - Reportable Segments | | $ | 2,629,457 | | | $ | 268,800 | | | $ | 2,898,257 | |
| - Corporate | | | | | | 34,130 | |
| - Total | | | | | | $ | 2,932,387 | |
| | | | | | | | | | | | | | | | | | | | |
| | United States | | Canada | | Total |
| Year Ended September 29, 2023 | | | | | | |
| Revenue | | $ | 2,575,352 | | | $ | 249,934 | | | $ | 2,825,286 | |
| Cost of services provided (exclusive of depreciation and amortization) | | 1,797,371 | | | 172,844 | | | 1,970,215 | |
| Depreciation and amortization | | 125,167 | | | 10,819 | | | 135,986 | |
| Selling, general and administrative expenses | | 349,052 | | | 52,564 | | | 401,616 | |
| Reportable segment operating income | | 303,762 | | | 13,707 | | | 317,469 | |
| Corporate and other | | | | | | (99,560) | |
| Gain (Loss) on Sale of Equity Investments, net | | | | | | 51,831 | |
| Interest Expense, Net | | | | | | (2,109) | |
| Other (Expense) Income, net | | | | | | 2,099 | |
| Income Before Income Taxes | | | | | | $ | 269,730 | |
| | | | | | |
| Capital expenditures | | $ | 72,353 | | | $ | 5,517 | | | $ | 77,870 | |
No individual customer accounted for more than 10% of revenues
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.