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FORM 10-K
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Our operations include activities in the United States and Canada. These operations expose us to a variety of
market risks, including the effects of changes in interest rates and foreign currency exchange rates. We monitor
and manage these financial exposures as an integral part of our overall risk management program. Our policies
allow for the use of specified financial instruments for hedging purposes only. Use of derivatives for speculation
purposes is prohibited.
Interest Rate Risk
We have a revolving credit facility that bears interest at a floating rate. As a result, we are exposed to
fluctuations in interest rates to the extent of our borrowings under the revolving credit facility. Our long-term
debt currently consists of fixed-rate instruments. To help manage borrowing costs, we may from time to time
enter into interest rate swap transactions with financial institutions acting as principal counterparties. These
interest rate swap transactions have the effect of converting part of fixed-rate debt to variable rates. As of
September 27, 2013, our exposure to fluctuations in interest rates was not material.
Foreign Currency Risk
We have exposure to the effects of foreign currency exchange rate fluctuations on the results of our
Canadian operations. Our Canadian operations use the Canadian dollar to conduct business, but our results are
reported in U.S. dollars.
We are periodically exposed to the foreign currency rate fluctuations that affect transactions not
denominated in the functional currency of our U.S. and Canadian operations. We may from time to time use
financial derivatives, which may include forward foreign currency exchange contracts and foreign currency
options, to hedge this risk. We generally do not hedge investments in foreign subsidiaries since such investments
are long-term in nature. As of September 27, 2013, our exposure to fluctuations in currency rates was not
material.
Item 8. Financial Statements and Supplementary Data.
The following consolidated and combined financial statements and schedule specified by this Item, together
with the report thereon of Deloitte & Touche LLP, are presented following Item 15 of this report:
• Report of Independent Registered Public Accounting Firm
• Consolidated Balance Sheets as of September 27, 2013 and September 28, 2012
• Consolidated and Combined Statements of Operations for the years ended September 27, 2013,
September 28, 2012 and September 30, 2011
• Consolidated and Combined Statements of Comprehensive Income for the years ended
September 27, 2013, September 28, 2012 and September 30, 2011
• Consolidated and Combined Statements of Stockholders’ Equity for the years ended
September 27, 2013, September 28, 2012 and September 30, 2011
• Consolidated and Combined Statements of Cash Flows for the years ended September 27, 2013,
September 28, 2012 and September 30, 2011
• Notes to Consolidated and Combined Financial Statements
• Financial Statement Schedule:
Schedule II—Valuation and Qualifying Accounts
54