Aramark | ||||||||
(Exact name of registrant as specified in its charter) | ||||||||
Delaware | 20-8236097 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||
2400 Market Street | 19103 | |||||||
Philadelphia, | Pennsylvania | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on which Registered | |||||||||
Common Stock, | par value $0.01 per share | ARMK | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ | ||||||||||||||||||||
TABLE OF CONTENTS | |||||||||||
Page | |||||||||||
Reportable Segments: | FSS United States | FSS International | Uniform | |||||||||||||||||||||||
FY 2020 Revenue(a): | $ | 7,366.7 | $ | 2,945.8 | $ | 2,517.1 | ||||||||||||||||||||
FY 2020 Operating Income (Loss)(a): | $ | 5.3 | $ | (344.2) | $ | 171.5 | ||||||||||||||||||||
Services: | Food, hospitality and facilities | Food, hospitality and facilities | Rental, sale and maintenance of uniform apparel and other items | |||||||||||||||||||||||
Sectors: | Business & industry, sports, leisure & corrections, education, healthcare and facilities and other | Business & industry, sports, leisure & corrections, education, healthcare and facilities and other | Business, public institutions, manufacturing, transportation and service industries |
Reportable Segments: | FSS United States | FSS International | Uniform | |||||||||||
FY 2019 Revenue(a): | $ | 9,898.6 | $ | 3,742.9 | $ | 2,585.8 | ||||||||
FY 2019 Operating Income(a): | $ | 716.8 | $ | 142.7 | $ | 191.3 | ||||||||
Services: | Food, hospitality and facilities | Food, hospitality and facilities | Rental, sale and maintenance of uniform apparel and other items | |||||||||||
Sectors: | Business & industry, sports, leisure & corrections, education, healthcare and facilities and other | Business & industry, sports, leisure & corrections, education, healthcare and facilities and other | Business, public institutions, manufacturing, transportation and service industries |
Name | Age | Position | With Aramark Since | Name | Age | Position | With Aramark Since | |||||||||||||||||||
John J. Zillmer | 64 | Chief Executive Officer | 2019 | John J. Zillmer | 65 | Chief Executive Officer | 2019 | |||||||||||||||||||
Stephen P. Bramlage, Jr. | 49 | Executive Vice President and Chief Financial Officer | 2015 | |||||||||||||||||||||||
Thomas G. Ondrof | Thomas G. Ondrof | 56 | Executive Vice President and Chief Financial Officer | 2020 | ||||||||||||||||||||||
Lynn B. McKee | 64 | Executive Vice President, Human Resources | 1980 | Lynn B. McKee | 65 | Executive Vice President, Human Resources | 1980 | |||||||||||||||||||
Lauren A. Harrington | 44 | Senior Vice President and General Counsel | 2006 | Lauren A. Harrington | 45 | Senior Vice President and General Counsel | 2006 | |||||||||||||||||||
Keith Bethel | 52 | Chief Growth Officer | 1991 | |||||||||||||||||||||||
Marc A. Bruno | 48 | Chief Operating Office, U.S. Food and Facilities | 1993 | Marc A. Bruno | 49 | Chief Operating Officer, U.S. Food and Facilities | 1993 |
October 3, 2014 | October 2, 2015 | September 30, 2016 | September 29, 2017 | September 28, 2018 | September 27, 2019 | October 2, 2015 | September 30, 2016 | September 29, 2017 | September 28, 2018 | September 27, 2019 | October 2, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Aramark | $100.0 | $116.6 | $143.8 | $153.6 | $162.7 | $162.7 | Aramark | $100.0 | $123.4 | $131.7 | $139.5 | $139.5 | $89.4 | |||||||||||||||||||||||||||||||||||||||||||||
S&P 500 | $100.0 | $102.9 | $110.2 | $128.0 | $148.1 | $150.5 | S&P 500 | $100.0 | $107.1 | $124.5 | $144.0 | $146.3 | $165.4 | |||||||||||||||||||||||||||||||||||||||||||||
Dow Jones Consumer Non-Cyclical Index | $100.0 | $115.2 | $117.9 | $131.8 | $169.9 | $171.7 | Dow Jones Consumer Non-Cyclical Index | $100.0 | $102.4 | $114.4 | $147.5 | $149.1 | $183.2 |
(dollars in millions, except per share amounts) | Fiscal Year Ended on or near September 30(1) | |||||||||||||||||||||||||||||||
2020(2)(3) | 2019(4) | 2018(5) | 2017 | 2016 | ||||||||||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||||||||||||||
Revenue | $ | 12,829.6 | $ | 16,227.3 | $ | 15,789.6 | $ | 14,604.4 | $ | 14,415.8 | ||||||||||||||||||||||
Depreciation and amortization | 595.2 | 592.6 | 596.2 | 508.2 | 495.8 | |||||||||||||||||||||||||||
Operating (loss) income | (264.9) | 891.2 | 818.4 | 801.6 | 741.4 | |||||||||||||||||||||||||||
Interest and Other Financing Costs, net | 382.8 | 335.0 | 346.6 | 280.9 | 310.5 | |||||||||||||||||||||||||||
Net (loss) income(6) | (461.4) | 448.5 | 568.4 | 374.2 | 288.2 | |||||||||||||||||||||||||||
Net (loss) income attributable to Aramark stockholders(6) | (461.5) | 448.5 | 567.9 | 373.9 | 287.8 | |||||||||||||||||||||||||||
Basic (loss) earnings per share attributable to Aramark stockholders(6) | ($1.83) | $1.82 | $2.31 | $1.53 | $1.19 | |||||||||||||||||||||||||||
Diluted (loss) earnings per share attributable to Aramark stockholders(6) | ($1.83) | $1.78 | $2.24 | $1.49 | $1.16 | |||||||||||||||||||||||||||
Cash dividends declared per common share | $0.44 | $0.44 | $0.43 | $0.41 | $0.39 | |||||||||||||||||||||||||||
Balance Sheet Data (at period end): | ||||||||||||||||||||||||||||||||
Total Assets | $ | 15,712.7 | $ | 13,736.3 | $ | 13,720.1 | $ | 11,006.2 | $ | 10,582.1 | ||||||||||||||||||||||
Long-Term Borrowings | 9,178.5 | 6,612.2 | 7,213.1 | 5,190.3 | 5,223.5 | |||||||||||||||||||||||||||
Stockholders' Equity | 2,736.0 | 3,320.0 | 3,029.6 | 2,459.1 | 2,161.0 |
(dollars in millions, except per share amounts) | Fiscal Year Ended on or near September 30(1) | |||||||||||||||||||
2019(2)(3) | 2018(3)(4) | 2017(4) | 2016(4) | 2015(4) | ||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Revenue | $ | 16,227.3 | $ | 15,789.6 | $ | 14,604.4 | $ | 14,415.8 | $ | 14,329.1 | ||||||||||
Depreciation and amortization | 592.6 | 596.2 | 508.2 | 495.8 | 504.0 | |||||||||||||||
Operating income | 891.2 | 818.4 | 801.6 | 741.4 | 625.2 | |||||||||||||||
Interest and Other Financing Costs, net | 335.0 | 346.6 | 280.9 | 310.5 | 283.2 | |||||||||||||||
Net income(5) | 448.5 | 568.4 | 374.2 | 288.2 | 237.0 | |||||||||||||||
Net income attributable to Aramark stockholders(5) | 448.5 | 567.9 | 373.9 | 287.8 | 235.9 | |||||||||||||||
Basic earnings per share attributable to Aramark stockholders(5) | $1.82 | $2.31 | $1.53 | $1.19 | $0.99 | |||||||||||||||
Diluted earnings per share attributable to Aramark stockholders(5) | $1.78 | $2.24 | $1.49 | $1.16 | $0.96 | |||||||||||||||
Cash dividends declared per common share | $0.44 | $0.43 | $0.41 | $0.39 | $0.35 | |||||||||||||||
Balance Sheet Data (at period end): | ||||||||||||||||||||
Total Assets | $ | 13,736.3 | $ | 13,720.1 | $ | 11,006.2 | $ | 10,582.1 | $ | 10,196.4 | ||||||||||
Long-Term Borrowings | 6,612.2 | 7,213.1 | 5,190.3 | 5,223.5 | 5,184.6 | |||||||||||||||
Stockholders' Equity | 3,320.0 | 3,029.6 | 2,459.1 | 2,161.0 | 1,883.4 |
Fiscal Year Ended | ||||||||||||||||||||||||||
October 2, 2020 | September 27, 2019 | $ | % | |||||||||||||||||||||||
Revenue | $ | 12,829.6 | $ | 16,227.3 | $ | (3,397.7) | (20.9) | % | ||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||
Cost of services provided | 11,993.7 | 14,532.7 | (2,539.0) | (17.5) | % | |||||||||||||||||||||
Other operating expenses | 902.2 | 959.7 | (57.5) | (6.0) | % | |||||||||||||||||||||
Goodwill impairment | 198.6 | — | 198.6 | 100.0 | % | |||||||||||||||||||||
Gain on sale of Healthcare Technologies | — | (156.3) | 156.3 | (100.0) | % | |||||||||||||||||||||
13,094.5 | 15,336.1 | (2,241.6) | (14.6) | % | ||||||||||||||||||||||
Operating (loss) income | (264.9) | 891.2 | (1,156.1) | (129.7) | % | |||||||||||||||||||||
Interest and Other Financing Costs, net | 382.8 | 335.0 | 47.8 | 14.3 | % | |||||||||||||||||||||
(Loss) Income Before Income Taxes | (647.7) | 556.2 | (1,203.9) | (216.5) | % | |||||||||||||||||||||
(Benefit) Provision for Income Taxes | (186.3) | 107.7 | (294.0) | (273.0) | % | |||||||||||||||||||||
Net (loss) income | $ | (461.4) | $ | 448.5 | $ | (909.9) | (202.9) | % |
Fiscal Year Ended | |||||||||||||||
September 27, 2019 | September 28, 2018 | $ | % | ||||||||||||
Revenue | $ | 16,227.3 | $ | 15,789.6 | $ | 437.7 | 3 | % | |||||||
Costs and Expenses: | |||||||||||||||
Cost of services provided | 14,532.7 | 13,997.9 | 534.8 | 4 | % | ||||||||||
Other operating expenses | 959.7 | 973.3 | (13.6 | ) | (1 | )% | |||||||||
Gain on sale of Healthcare Technologies | (156.3 | ) | — | (156.3 | ) | — | % | ||||||||
15,336.1 | 14,971.2 | 364.9 | 2 | % | |||||||||||
Operating income | 891.2 | 818.4 | 72.8 | 9 | % | ||||||||||
Interest and Other Financing Costs, net | 335.0 | 346.6 | (11.6 | ) | (3 | )% | |||||||||
Income Before Income Taxes | 556.2 | 471.8 | 84.4 | 18 | % | ||||||||||
Provision (Benefit) for Income Taxes | 107.7 | (96.6 | ) | 204.3 | (212 | )% | |||||||||
Net income | $ | 448.5 | $ | 568.4 | $ | (119.9 | ) | (21 | )% |
Fiscal Year Ended | ||||||||||||||||||||||||||
Revenue by Segment(1) | October 2, 2020 | September 27, 2019 | $ | % | ||||||||||||||||||||||
FSS United States | $ | 7,366.7 | $ | 9,898.6 | $ | (2,531.9) | (25.6 | %) | ||||||||||||||||||
FSS International | 2,945.8 | 3,742.9 | (797.1) | (21.3 | %) | |||||||||||||||||||||
Uniform | 2,517.1 | 2,585.8 | (68.7) | (2.7 | %) | |||||||||||||||||||||
$ | 12,829.6 | $ | 16,227.3 | $ | (3,397.7) | (20.9 | %) | |||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||||
Operating Income (Loss) by Segment(1) | October 2, 2020 | September 27, 2019 | $ | % | ||||||||||||||||||||||
FSS United States | $ | 5.3 | $ | 716.8 | $ | (711.5) | (99.3 | %) | ||||||||||||||||||
FSS International | (344.2) | 142.7 | (486.9) | *** | ||||||||||||||||||||||
Uniform | 171.5 | 191.3 | (19.8) | (10.4 | %) | |||||||||||||||||||||
Corporate | (97.5) | (159.6) | 62.1 | (38.9 | %) | |||||||||||||||||||||
$ | (264.9) | $ | 891.2 | $ | (1,156.1) | (129.7 | %) |
Fiscal Year Ended | |||||||||||||||
Revenue by Segment(1) | September 27, 2019 | September 28, 2018 | $ | % | |||||||||||
FSS United States | $ | 9,898.6 | $ | 10,137.8 | $ | (239.2 | ) | (2 | %) | ||||||
FSS International | 3,742.9 | 3,655.8 | 87.1 | 2 | % | ||||||||||
Uniform | 2,585.8 | 1,996.0 | 589.8 | 30 | % | ||||||||||
$ | 16,227.3 | $ | 15,789.6 | $ | 437.7 | 3 | % | ||||||||
Fiscal Year Ended | |||||||||||||||
Operating Income by Segment(1) | September 27, 2019 | September 28, 2018 | $ | % | |||||||||||
FSS United States | $ | 716.8 | $ | 682.7 | $ | 34.1 | 5 | % | |||||||
FSS International | 142.7 | 142.2 | 0.5 | — | % | ||||||||||
Uniform | 191.3 | 181.4 | 9.9 | 5 | % | ||||||||||
Corporate | (159.6 | ) | (187.9 | ) | 28.3 | (15 | %) | ||||||||
$ | 891.2 | $ | 818.4 | $ | 72.8 | 9 | % |
Fiscal Year Ended | ||||||||||||||||||||||||||
October 2, 2020 | September 27, 2019 | |||||||||||||||||||||||||
Cost of services provided(1) | $ | % of Revenue | $ | % of Revenue | ||||||||||||||||||||||
FSS United States | $ | 6,889.4 | 93.5 | % | $ | 8,851.5 | 89.4 | % | ||||||||||||||||||
FSS International | 2,998.4 | 101.8 | % | 3,517.1 | 94.0 | % | ||||||||||||||||||||
Uniform | 2,105.9 | 83.7 | % | 2,164.1 | 83.7 | % | ||||||||||||||||||||
$ | 11,993.7 | 93.5 | % | $ | 14,532.7 | 89.6 | % |
Fiscal Year Ended | ||||||||||||||
September 27, 2019 | September 28, 2018 | |||||||||||||
Cost of services provided | $ | % of Revenue | $ | % of Revenue | ||||||||||
FSS United States | $ | 8,851.5 | 89 | % | $ | 8,956.9 | 88 | % | ||||||
FSS International | 3,517.1 | 94 | % | 3,428.8 | 94 | % | ||||||||
Uniform | 2,164.1 | 84 | % | 1,612.2 | 81 | % | ||||||||
$ | 14,532.7 | 90 | % | $ | 13,997.9 | 89 | % |
Fiscal Year Ended | ||||||||||||||
Cost of services provided components | October 2, 2020 | September 27, 2019 | ||||||||||||
Food and support service costs | 25.7 | % | 27.9 | % | ||||||||||
Personnel costs(1) | 49.3 | % | 46.8 | % | ||||||||||
Other direct costs | 25.0 | % | 25.3 | % | ||||||||||
100.0 | % | 100.0 | % |
Fiscal Year Ended | ||||||
Cost of services provided components | September 27, 2019 | September 28, 2018 | ||||
Food and support service costs | 28 | % | 26 | % | ||
Personnel costs | 47 | % | 47 | % | ||
Other direct costs | 25 | % | 27 | % | ||
100 | % | 100 | % |
Fiscal Year Ended | Change | Fiscal Year Ended | Change | ||||||||||||||||||||||||||||
September 27, 2019 | September 28, 2018 | % | October 2, 2020 | September 27, 2019 | % | ||||||||||||||||||||||||||
Business & Industry | $ | 1,587.0 | $ | 1,550.6 | 2 | % | Business & Industry | $ | 1,097.3 | $ | 1,587.0 | (30.9) | % | ||||||||||||||||||
Education | 3,228.8 | 3,239.6 | — | % | Education | 2,416.4 | 3,228.8 | (25.2) | % | ||||||||||||||||||||||
Healthcare | 933.5 | 1,292.1 | (28 | )% | Healthcare | 824.6 | 933.5 | (11.7) | % | ||||||||||||||||||||||
Sports, Leisure & Corrections | 2,557.5 | 2,445.1 | 5 | % | Sports, Leisure & Corrections | 1,535.8 | 2,557.5 | (39.9) | % | ||||||||||||||||||||||
Facilities & Other | 1,591.8 | 1,610.4 | (1 | )% | Facilities & Other | 1,492.6 | 1,591.8 | (6.2) | % | ||||||||||||||||||||||
$ | 9,898.6 | $ | 10,137.8 | (2 | )% | $ | 7,366.7 | $ | 9,898.6 | (25.6) | % |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||
September 27, 2019 | September 28, 2018 | October 2, 2020 | September 27, 2019 | |||||||||||||||
Net cash provided by operating activities | $ | 984.2 | $ | 1,051.9 | Net cash provided by operating activities | $ | 176.7 | $ | 984.2 | |||||||||
Net cash used in investing activities | (209.5 | ) | (2,865.3 | ) | Net cash used in investing activities | (361.1) | (209.5) | |||||||||||
Net cash provided by (used in) financing activities | (734.9 | ) | 1,794.2 | Net cash provided by (used in) financing activities | 2,437.5 | (734.9) |
Fiscal Year Ended | ||||||||||||||
(in millions) | October 2, 2020 | September 27, 2019 | ||||||||||||
Net (loss) income attributable to ASI stockholder | $ | (461.5) | $ | 448.5 | ||||||||||
Interest and other financing costs, net | 382.8 | 335.0 | ||||||||||||
(Benefit) Provision for income taxes | (186.3) | 107.7 | ||||||||||||
Depreciation and amortization | 595.2 | 592.6 | ||||||||||||
Share-based compensation expense(1) | 30.3 | 55.3 | ||||||||||||
Unusual or non-recurring (gains) and losses(2) | 198.6 | (156.3) | ||||||||||||
Pro forma EBITDA for equity method investees(3) | 10.1 | 8.1 | ||||||||||||
Pro forma EBITDA for certain transactions(4) | 6.3 | 21.5 | ||||||||||||
Other(5) | 490.6 | 253.5 | ||||||||||||
Covenant Adjusted EBITDA | $ | 1,066.1 | $ | 1,665.9 |
Fiscal Year Ended | ||||||||
(in millions) | September 27, 2019 | September 28, 2018 | ||||||
Net income attributable to ASI stockholder | $ | 448.5 | $ | 567.9 | ||||
Interest and other financing costs, net | 335.0 | 346.5 | ||||||
Provision (Benefit) for income taxes | 107.7 | (96.6 | ) | |||||
Depreciation and amortization | 592.6 | 596.2 | ||||||
Share-based compensation expense(1) | 55.3 | 88.3 | ||||||
Unusual or non-recurring (gains)/losses(2) | (156.3 | ) | — | |||||
Pro forma EBITDA for equity method investees(3) | 8.1 | 15.2 | ||||||
Pro forma EBITDA for certain transactions(4) | 21.5 | 58.6 | ||||||
Other(5) | 253.5 | 151.7 | ||||||
Covenant Adjusted EBITDA | $ | 1,665.9 | $ | 1,727.8 |
(2) Represents the fiscal 2020 non-cash impairment charge related to goodwill (see Note 4 to the audited consolidated financial statements) and the fiscal 2019 gain from the divestiture of HCT (see Note 2 to the audited consolidated financial statements). (3) Represents our estimated share of EBITDA, primarily from our AIM Services Co., Ltd. equity method investment, not already reflected in our Net (loss) income attributable to ASI stockholder. EBITDA for this equity method investee is calculated in a manner consistent with consolidated Covenant Adjusted EBITDA but does not represent cash distributions received from this investee. (4) Represents the annualizing of net EBITDA from acquisitions and divestitures made during the period. (5) "Other" for the twelve months ended October 2, 2020 and September 27, 2019, respectively, includes severance charges ($152.7 million and $18.7 million), non-cash impairment charges related to various assets ($30.6 million and $14.8 million), expenses related to merger and integration related charges ($28.9 million and $36.1 million), adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($23.1 million and $23.7 million), the impact of hyperinflation in Argentina ($2.5 million and $4.9 million), compensation expense for retirement contributions and employee training programs funded by benefits from U.S. tax reform ($1.4 million and $74.9 million), charges related to certain legal settlements ($1.0 million net expense reduction and $27.9 million), the loss from the change in fair value related to certain gasoline and diesel agreements ($0.5 million and $4.7 million) and other miscellaneous expenses. "Other" for the |
Covenant Requirements | Actual Ratios | ||||||||||
Interest Coverage Ratio (Fixed Charge Coverage Ratio)(2) | 2.000x |
(1) The covenant waiver period for the Consolidated Secured Debt Ratio covenant is in effect for the fourth quarter of fiscal 2020 through the third quarter of fiscal 2021. (2) Our Credit Agreement establishes an incurrence-based minimum Interest Coverage Ratio, defined as Covenant Adjusted EBITDA to consolidated interest expense, the achievement of which is a condition for us to incur additional indebtedness and to make certain restricted payments. If we do not maintain this minimum Interest Coverage Ratio calculated on a pro forma basis for any such additional indebtedness or restricted payments, we could be prohibited from being able to incur additional indebtedness, other than the incremental capacity provided for under the Credit Agreement and pursuant to specified exceptions, and make certain restricted payments, other than pursuant to certain exceptions. The minimum Interest Coverage Ratio is 2.000x for the term of the Credit Agreement. Consolidated interest expense is defined in the Credit Agreement as consolidated interest expense excluding interest income, adjusted for acquisitions and dispositions, further adjusted for certain non-cash or nonrecurring interest expense and our estimated share of interest expense from one equity method investee. The indentures governing our senior notes include a similar requirement which is referred to as a Fixed Charge Coverage Ratio. Subject to restrictions imposed upon us during the covenant waiver period in accordance with Amendment No. 9 to the Credit Agreement, we and our |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations as of October 2, 2020 | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Long-term borrowings(1)(2) | $ | 9,198,187 | $ | 69,932 | $ | 469,173 | $ | 6,158,580 | $ | 2,500,502 | ||||||||||||||||||||||
Finance lease obligations | 157,329 | 31,290 | 45,208 | 31,668 | 49,163 | |||||||||||||||||||||||||||
Estimated interest payments(2)(3) | 1,676,600 | 359,700 | 663,700 | 478,600 | 174,600 | |||||||||||||||||||||||||||
Operating leases and other noncancelable commitments | 476,602 | 85,005 | 123,831 | 82,990 | 184,776 | |||||||||||||||||||||||||||
Purchase obligations(4) | 816,125 | 306,984 | 241,569 | 70,164 | 197,408 | |||||||||||||||||||||||||||
Other liabilities(5) | 365,200 | 76,600 | 78,500 | 13,000 | 197,100 | |||||||||||||||||||||||||||
$ | 12,690,043 | $ | 929,511 | $ | 1,621,981 | $ | 6,835,002 | $ | 3,303,549 | |||||||||||||||||||||||
Amount of Commitment Expiration by Period | ||||||||||||||||||||||||||||||||
Other Commercial Commitments as of October 2, 2020 | Total Amounts Committed | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Letters of credit | $ | 191,667 | $ | 191,667 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations as of September 27, 2019 | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Long-term borrowings(1) | $ | 6,571,716 | $ | 38,607 | $ | 92,211 | $ | 2,169,447 | $ | 4,271,451 | ||||||||||
Capital lease obligations | 148,754 | 31,321 | 50,420 | 30,814 | 36,199 | |||||||||||||||
Estimated interest payments(2) | 1,473,800 | 237,200 | 478,100 | 471,500 | 287,000 | |||||||||||||||
Operating leases and other noncancelable commitments | 527,562 | 101,061 | 131,673 | 80,010 | 214,818 | |||||||||||||||
Purchase obligations(3) | 595,289 | 248,926 | 158,449 | 63,031 | 124,883 | |||||||||||||||
Other liabilities(4) | 270,100 | 58,800 | 32,000 | 14,000 | 165,300 | |||||||||||||||
$ | 9,587,221 | $ | 715,915 | $ | 942,853 | $ | 2,828,802 | $ | 5,099,651 | |||||||||||
Amount of Commitment Expiration by Period | ||||||||||||||||||||
Other Commercial Commitments as of September 27, 2019 | Total Amounts Committed | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
Letters of credit | $ | 110,052 | $ | 110,052 | $ | — | $ | — | $ | — |
(1)Excludes |
(US$ equivalent in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Fiscal Year of Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 2, 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | 31 | $ | 25 | $ | 20 | $ | 17 | $ | 2,495 | $ | 1,700 | $ | 4,288 | $ | 4,351 | ||||||||||||||||||||||||||||||||||
Average interest rate | 4.2 | % | 4.2 | % | 4.2 | % | 4.2 | % | 5.5 | % | 4.9 | % | 5.3 | % | ||||||||||||||||||||||||||||||||||||
Variable rate | $ | 70 | $ | 379 | (a) | $ | 90 | $ | 2,002 | (b) | $ | 1,676 | $ | 850 | $ | 5,067 | $ | 4,909 | ||||||||||||||||||||||||||||||||
Average interest rate | 3.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||
Interest Rate Swaps: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receive variable/pay fixed | $ | 329 | $ | 250 | $ | 1,550 | $ | — | $ | 800 | $ | — | $ | 2,929 | $ | (118) | ||||||||||||||||||||||||||||||||||
Average pay rate | 1.9 | % | 2.6 | % | 2.1 | % | — | % | 1.6 | % | — | % | ||||||||||||||||||||||||||||||||||||||
Average receive rate | 0.1 | % | 0.1 | % | 0.1 | % | — | % | 0.1 | % | — | % |
(US$ equivalent in millions) | ||||||||||||||||||||||||||||||||
Expected Fiscal Year of Maturity | ||||||||||||||||||||||||||||||||
As of September 27, 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||
Fixed rate | $ | 31 | $ | 31 | $ | 20 | $ | 14 | $ | 917 | $ | 2,641 | $ | 3,654 | $ | 3,782 | ||||||||||||||||
Average interest rate | 5.0 | % | 5.0 | % | 5.0 | % | 5.0 | % | 5.1 | % | 4.7 | % | 4.8 | % | ||||||||||||||||||
Variable rate | $ | 39 | $ | 39 | (a) | $ | 53 | $ | 80 | $ | 1,190 | $ | 1,665 | $ | 3,066 | $ | 3,069 | |||||||||||||||
Average interest rate | 3.1 | % | 2.4 | % | 2.4 | % | 2.4 | % | 3.7 | % | 4.1 | % | 3.8 | % | ||||||||||||||||||
Interest Rate Swaps: | ||||||||||||||||||||||||||||||||
Receive variable/pay fixed | $ | 425 | $ | 250 | $ | 327 | $ | 1,550 | $ | — | $ | — | $ | 2,552 | $ | (43 | ) | |||||||||||||||
Average pay rate | 2.2 | % | 2.5 | % | 2.0 | % | 2.1 | % | — | % | — | % | ||||||||||||||||||||
Average receive rate | 2.1 | % | 2.1 | % | 1.6 | % | 2.1 | % | — | % | — | % |
Aramark | ||||||||||||||||||||
By: | /s/ | |||||||||||||||||||
Name: | ||||||||||||||||||||
Title: | Executive Vice President and Chief Financial Officer |
Name | Capacity | |||||||
/s/ JOHN J. ZILLMER | Chief Executive Officer and Director | |||||||
John J. Zillmer | (Principal Executive Officer) | |||||||
/s/ | Executive Vice President and Chief Financial Officer | |||||||
(Principal Financial Officer and Principal Accounting Officer) | ||||||||
/s/ SUSAN CAMERON | Director | |||||||
Susan Cameron | ||||||||
/s/ GREG CREED | Director | |||||||
Greg Creed | ||||||||
/s/ CALVIN DARDEN | Director | |||||||
Calvin Darden | ||||||||
/s/ RICHARD W. DREILING | Director | |||||||
Richard W. Dreiling | ||||||||
/s/ IRENE M. ESTEVES | Director | |||||||
Irene M. Esteves | ||||||||
/s/ DANIEL J. HEINRICH | Director | |||||||
Daniel J. Heinrich | ||||||||
/s/ PAUL HILAL | Vice Chairman, Director | |||||||
Paul Hilal | ||||||||
/s/ KAREN KING | Director | |||||||
Karen King | ||||||||
/s/ STEPHEN I. SADOVE | Chairman, Director | |||||||
Stephen I. Sadove | ||||||||
/s/ ART WINKLEBLACK | Director | |||||||
Art Winkleblack |
Page | |||||||||||
October 2, 2020 | September 27, 2019 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 2,509,188 | $ | 246,643 | |||||||
Receivables (less allowances: 2020 - $74,925; 2019 - $49,566) | 1,431,206 | 1,806,964 | |||||||||
Inventories | 436,473 | 411,319 | |||||||||
Prepayments and other current assets | 298,944 | 193,461 | |||||||||
Total current assets | 4,675,811 | 2,658,387 | |||||||||
Property and Equipment, at cost: | |||||||||||
Land, buildings and improvements | 929,354 | 947,522 | |||||||||
Service equipment and fixtures | 4,184,603 | 3,993,014 | |||||||||
5,113,957 | 4,940,536 | ||||||||||
Less - Accumulated depreciation | (3,063,049) | (2,758,774) | |||||||||
2,050,908 | 2,181,762 | ||||||||||
Goodwill | 5,343,828 | 5,518,800 | |||||||||
Other Intangible Assets | 1,932,637 | 2,033,566 | |||||||||
Operating Lease Right-of-use Assets (see Note 8) | 551,394 | 0 | |||||||||
Other Assets | 1,158,106 | 1,343,806 | |||||||||
$ | 15,712,684 | $ | 13,736,321 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Current maturities of long-term borrowings | $ | 99,915 | $ | 69,928 | |||||||
Current operating lease liabilities (see Note 8) | 71,810 | 0 | |||||||||
Accounts payable | 663,455 | 999,517 | |||||||||
Accrued payroll and related expenses | 572,076 | 509,617 | |||||||||
Accrued expenses and other current liabilities | 940,202 | 1,126,236 | |||||||||
Total current liabilities | 2,347,458 | 2,705,298 | |||||||||
Long-Term Borrowings | 9,178,508 | 6,612,239 | |||||||||
Noncurrent Operating Lease Liabilities (see Note 8) | 341,667 | 0 | |||||||||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,099,075 | 1,088,822 | |||||||||
Redeemable Noncontrolling Interest | 9,988 | 9,915 | |||||||||
Stockholders' Equity: | |||||||||||
Common stock, par value $0.01 (authorized: 600,000,000 shares; issued: 2020—290,663,529 shares and 2019—282,919,536; and outstanding: 2020—253,042,169 shares and 2019—247,756,091 shares) | 2,907 | 2,829 | |||||||||
Capital surplus | 3,416,132 | 3,236,450 | |||||||||
Retained earnings | 532,379 | 1,107,029 | |||||||||
Accumulated other comprehensive loss | (307,258) | (216,965) | |||||||||
Treasury stock (shares held in treasury: 2020—37,621,360 shares and 2019—35,163,445 shares) | (908,172) | (809,296) | |||||||||
Total stockholders' equity | 2,735,988 | 3,320,047 | |||||||||
$ | 15,712,684 | $ | 13,736,321 |
September 27, 2019 | September 28, 2018 | ||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 246,643 | $ | 215,025 | |||
Receivables (less allowances: 2019 - $49,566; 2018 - $52,682) | 1,806,964 | 1,790,433 | |||||
Inventories | 411,319 | 724,802 | |||||
Prepayments and other current assets | 193,461 | 171,165 | |||||
Total current assets | 2,658,387 | 2,901,425 | |||||
Property and Equipment, at cost: | |||||||
Land, buildings and improvements | 947,522 | 901,874 | |||||
Service equipment and fixtures | 3,993,014 | 2,296,331 | |||||
4,940,536 | 3,198,205 | ||||||
Less - Accumulated depreciation | (2,758,774 | ) | (1,820,111 | ) | |||
2,181,762 | 1,378,094 | ||||||
Goodwill | 5,518,800 | 5,610,568 | |||||
Other Intangible Assets | 2,033,566 | 2,136,844 | |||||
Other Assets | 1,343,806 | 1,693,171 | |||||
$ | 13,736,321 | $ | 13,720,102 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities: | |||||||
Current maturities of long-term borrowings | $ | 69,928 | $ | 30,907 | |||
Accounts payable | 999,517 | 1,018,920 | |||||
Accrued payroll and related expenses | 509,617 | 422,299 | |||||
Accrued expenses and other current liabilities | 1,126,236 | 1,018,033 | |||||
Total current liabilities | 2,705,298 | 2,490,159 | |||||
Long-Term Borrowings | 6,612,239 | 7,213,077 | |||||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,088,822 | 977,215 | |||||
Redeemable Noncontrolling Interest | 9,915 | 10,093 | |||||
Stockholders' Equity: | |||||||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—282,919,536 shares and 2018—279,314,297; and outstanding: 2019—247,756,091 shares and 2018—246,744,438 shares) | 2,829 | 2,793 | |||||
Capital surplus | 3,236,450 | 3,132,421 | |||||
Retained earnings | 1,107,029 | 710,519 | |||||
Accumulated other comprehensive loss | (216,965 | ) | (91,223 | ) | |||
Treasury stock (shares held in treasury: 2019—35,163,445 shares and 2018—32,569,859 shares) | (809,296 | ) | (724,952 | ) | |||
Total stockholders' equity | 3,320,047 | 3,029,558 | |||||
$ | 13,736,321 | $ | 13,720,102 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Revenue | $ | 12,829,559 | $ | 16,227,341 | $ | 15,789,633 | |||||||||||
Costs and Expenses: | |||||||||||||||||
Cost of services provided | 11,993,667 | 14,532,662 | 13,997,911 | ||||||||||||||
Depreciation and amortization | 595,195 | 592,573 | 596,182 | ||||||||||||||
Selling and general corporate expenses | 307,016 | 367,256 | 377,129 | ||||||||||||||
Goodwill impairment | 198,600 | 0 | 0 | ||||||||||||||
Gain on sale of Healthcare Technologies | 0 | (156,309) | 0 | ||||||||||||||
13,094,478 | 15,336,182 | 14,971,222 | |||||||||||||||
Operating (loss) income | (264,919) | 891,159 | 818,411 | ||||||||||||||
Interest and Other Financing Costs, net | 382,800 | 334,987 | 346,535 | ||||||||||||||
(Loss) Income Before Income Taxes | (647,719) | 556,172 | 471,876 | ||||||||||||||
(Benefit) Provision for Income Taxes | (186,284) | 107,706 | (96,564) | ||||||||||||||
Net (loss) income | (461,435) | 448,466 | 568,440 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 | ||||||||||||||
Net (loss) income attributable to Aramark stockholders | $ | (461,529) | $ | 448,549 | $ | 567,885 | |||||||||||
(Loss) Earnings per share attributable to Aramark stockholders: | |||||||||||||||||
Basic | $ | (1.83) | $ | 1.82 | $ | 2.31 | |||||||||||
Diluted | $ | (1.83) | $ | 1.78 | $ | 2.24 | |||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||
Basic | 251,828 | 246,854 | 245,771 | ||||||||||||||
Diluted | 251,828 | 252,010 | 253,352 |
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||
Revenue | $ | 16,227,341 | $ | 15,789,633 | $ | 14,604,412 | |||||
Costs and Expenses: | |||||||||||
Cost of services provided | 14,532,662 | 13,997,911 | 12,995,403 | ||||||||
Depreciation and amortization | 592,573 | 596,182 | 508,212 | ||||||||
Selling and general corporate expenses | 367,256 | 377,129 | 299,170 | ||||||||
Gain on sale of Healthcare Technologies | (156,309 | ) | — | — | |||||||
15,336,182 | 14,971,222 | 13,802,785 | |||||||||
Operating income | 891,159 | 818,411 | 801,627 | ||||||||
Interest and Other Financing Costs, net | 334,987 | 346,535 | 280,985 | ||||||||
Income Before Income Taxes | 556,172 | 471,876 | 520,642 | ||||||||
Provision (Benefit) for Income Taxes | 107,706 | (96,564 | ) | 146,455 | |||||||
Net income | 448,466 | 568,440 | 374,187 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83 | ) | 555 | 264 | |||||||
Net income attributable to Aramark stockholders | $ | 448,549 | $ | 567,885 | $ | 373,923 | |||||
Earnings per share attributable to Aramark stockholders: | |||||||||||
Basic | $ | 1.82 | $ | 2.31 | $ | 1.53 | |||||
Diluted | $ | 1.78 | $ | 2.24 | $ | 1.49 | |||||
Weighted Average Shares Outstanding: | |||||||||||
Basic | 246,854 | 245,771 | 244,453 | ||||||||
Diluted | 252,010 | 253,352 | 251,557 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Net (loss) income | $ | (461,435) | $ | 448,466 | $ | 568,440 | |||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||
Pension plan adjustments | (25,669) | (22,594) | 20,647 | ||||||||||||||
Foreign currency translation adjustments | (7,818) | (34,308) | (31,253) | ||||||||||||||
Cash flow hedges: | |||||||||||||||||
Unrealized (losses) gains arising during the period | (82,005) | (62,450) | 39,311 | ||||||||||||||
Reclassification adjustments | 25,463 | (4,798) | 3,675 | ||||||||||||||
Share of equity investee's comprehensive (loss) income | (264) | (1,592) | 157 | ||||||||||||||
Other comprehensive (loss) income, net of tax | (90,293) | (125,742) | 32,537 | ||||||||||||||
Comprehensive (loss) income | (551,728) | 322,724 | 600,977 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 | ||||||||||||||
Comprehensive (loss) income attributable to Aramark stockholders | $ | (551,822) | $ | 322,807 | $ | 600,422 |
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||
Net income | $ | 448,466 | $ | 568,440 | $ | 374,187 | |||||
Other comprehensive income (loss), net of tax: | |||||||||||
Pension plan adjustments | (22,594 | ) | 20,647 | 19,992 | |||||||
Foreign currency translation adjustments | (34,308 | ) | (31,253 | ) | 5,903 | ||||||
Cash flow hedges: | |||||||||||
Unrealized gains (losses) arising during the period | (62,450 | ) | 39,311 | 19,449 | |||||||
Reclassification adjustments | (4,798 | ) | 3,675 | 10,130 | |||||||
Share of equity investee's comprehensive income (loss) | (1,592 | ) | 157 | 1,549 | |||||||
Other comprehensive income (loss), net of tax | (125,742 | ) | 32,537 | 57,023 | |||||||
Comprehensive income | 322,724 | 600,977 | 431,210 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83 | ) | 555 | 264 | |||||||
Comprehensive income attributable to Aramark stockholders | $ | 322,807 | $ | 600,422 | $ | 430,946 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||||||||||||
Net income | $ | 448,466 | $ | 568,440 | $ | 374,187 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||||
Net (loss) income | Net (loss) income | $ | (461,435) | $ | 448,466 | $ | 568,440 | |||||||||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||||||||||||
Depreciation and amortization | 592,573 | 596,182 | 508,212 | Depreciation and amortization | 595,195 | 592,573 | 596,182 | |||||||||||||||||||||
Goodwill impairment and asset write-downs | Goodwill impairment and asset write-downs | 283,743 | 0 | 0 | ||||||||||||||||||||||||
Deferred income taxes | 40,503 | (104,289 | ) | (37,856 | ) | Deferred income taxes | (134,048) | 40,503 | (104,289) | |||||||||||||||||||
Share-based compensation expense | 55,280 | 88,276 | 65,155 | Share-based compensation expense | 30,339 | 55,280 | 88,276 | |||||||||||||||||||||
Net gain on sale of Healthcare Technologies | (139,165 | ) | — | — | Net gain on sale of Healthcare Technologies | 0 | (139,165) | 0 | ||||||||||||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | |||||||||||||||||||||||||||
Accounts Receivable | (78,771 | ) | (45,891 | ) | (111,423 | ) | Accounts Receivable | 362,708 | (78,771) | (45,891) | ||||||||||||||||||
Inventories | (49,732 | ) | (40,187 | ) | (21,147 | ) | Inventories | (25,675) | (49,732) | (40,187) | ||||||||||||||||||
Prepayments and Other Current Assets | (37,854 | ) | 42,450 | 95,536 | Prepayments and Other Current Assets | (86,444) | (37,854) | 42,450 | ||||||||||||||||||||
Accounts Payable | 17,680 | 26,658 | 93,965 | Accounts Payable | (342,069) | 17,680 | 26,658 | |||||||||||||||||||||
Accrued Expenses | 193,532 | (111,386 | ) | 26,804 | Accrued Expenses | (143,640) | 193,532 | (111,386) | ||||||||||||||||||||
Payments made to clients on contracts (see Note 7) | (40,073 | ) | — | — | ||||||||||||||||||||||||
Payments made to clients on contracts | Payments made to clients on contracts | (69,575) | (40,073) | 0 | ||||||||||||||||||||||||
Changes in other noncurrent liabilities | 18,904 | 1,576 | 31,959 | Changes in other noncurrent liabilities | 92,782 | 18,904 | 1,576 | |||||||||||||||||||||
Changes in other assets | (41,436 | ) | (2,225 | ) | (9,342 | ) | Changes in other assets | 66,650 | (41,436) | (2,225) | ||||||||||||||||||
Other operating activities | 4,320 | 32,271 | 36,776 | Other operating activities | 8,151 | 4,320 | 32,271 | |||||||||||||||||||||
Net cash provided by operating activities | 984,227 | 1,051,875 | 1,052,826 | Net cash provided by operating activities | 176,682 | 984,227 | 1,051,875 | |||||||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||||||||
Purchases of property and equipment and other | (503,090 | ) | (628,604 | ) | (552,729 | ) | Purchases of property and equipment and other | (418,508) | (503,090) | (628,604) | ||||||||||||||||||
Disposals of property and equipment | 17,871 | 10,491 | 18,906 | Disposals of property and equipment | 54,074 | 17,871 | 10,491 | |||||||||||||||||||||
Proceeds from divestitures | 293,711 | — | — | Proceeds from divestitures | 0 | 293,711 | 0 | |||||||||||||||||||||
Acquisition of certain businesses, net of cash acquired | Acquisition of certain businesses, net of cash acquired | |||||||||||||||||||||||||||
Working capital other than cash acquired | 10,634 | 37,985 | 8,114 | Working capital other than cash acquired | (3,081) | 10,634 | 37,985 | |||||||||||||||||||||
Property and equipment | (3,320 | ) | (283,447 | ) | (2,273 | ) | Property and equipment | (1,264) | (3,320) | (283,447) | ||||||||||||||||||
Additions to goodwill, other intangible assets and other assets, net | (52,177 | ) | (1,994,822 | ) | (147,963 | ) | Additions to goodwill, other intangible assets and other assets, net | (17,856) | (52,177) | (1,994,822) | ||||||||||||||||||
Proceeds from governmental agencies related to property and equipment | 23,025 | — | — | Proceeds from governmental agencies related to property and equipment | 23,550 | 23,025 | 0 | |||||||||||||||||||||
Other investing activities | 3,825 | (6,879 | ) | (2,539 | ) | Other investing activities | 1,965 | 3,825 | (6,879) | |||||||||||||||||||
Net cash used in investing activities | (209,521 | ) | (2,865,276 | ) | (678,484 | ) | Net cash used in investing activities | (361,120) | (209,521) | (2,865,276) | ||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||||||||
Proceeds from long-term borrowings | 77,630 | 3,177,313 | 3,851,417 | Proceeds from long-term borrowings | 3,239,772 | 77,630 | 3,177,313 | |||||||||||||||||||||
Payments of long-term borrowings | (654,560 | ) | (973,689 | ) | (3,911,992 | ) | Payments of long-term borrowings | (1,000,463) | (654,560) | (973,689) | ||||||||||||||||||
Net change in funding under the Receivables Facility | — | (254,200 | ) | (13,800 | ) | Net change in funding under the Receivables Facility | 315,600 | 0 | (254,200) | |||||||||||||||||||
Payments of dividends | (108,439 | ) | (103,115 | ) | (100,813 | ) | Payments of dividends | (110,893) | (108,439) | (103,115) | ||||||||||||||||||
Proceeds from issuance of common stock | 39,087 | 21,507 | 28,779 | Proceeds from issuance of common stock | 90,022 | 39,087 | 21,507 | |||||||||||||||||||||
Repurchase of common stock | (50,000 | ) | (24,410 | ) | (100,000 | ) | Repurchase of common stock | (6,540) | (50,000) | (24,410) | ||||||||||||||||||
Other financing activities | (38,610 | ) | (49,253 | ) | (42,277 | ) | Other financing activities | (89,976) | (38,610) | (49,253) | ||||||||||||||||||
Net cash provided by (used in) financing activities | (734,892 | ) | 1,794,153 | (288,686 | ) | Net cash provided by (used in) financing activities | 2,437,522 | (734,892) | 1,794,153 | |||||||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | (8,196 | ) | (4,524 | ) | 561 | Effect of foreign exchange rates on cash and cash equivalents | 9,461 | (8,196) | (4,524) | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 31,618 | (23,772 | ) | 86,217 | Increase (decrease) in cash and cash equivalents | 2,262,545 | 31,618 | (23,772) | ||||||||||||||||||||
Cash and cash equivalents, beginning of period | 215,025 | 238,797 | 152,580 | Cash and cash equivalents, beginning of period | 246,643 | 215,025 | 238,797 | |||||||||||||||||||||
Cash and cash equivalents, end of period | $ | 246,643 | $ | 215,025 | $ | 238,797 | Cash and cash equivalents, end of period | $ | 2,509,188 | $ | 246,643 | $ | 215,025 |
Fiscal Year Ended | ||||||||||||||||||||||||||
October 2, 2020 | September 27, 2019 | $ | % | |||||||||||||||||||||||
Revenue | $ | 12,829.6 | $ | 16,227.3 | $ | (3,397.7) | (20.9) | % | ||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||
Cost of services provided | 11,993.7 | 14,532.7 | (2,539.0) | (17.5) | % | |||||||||||||||||||||
Other operating expenses | 902.2 | 959.7 | (57.5) | (6.0) | % | |||||||||||||||||||||
Goodwill impairment | 198.6 | — | 198.6 | 100.0 | % | |||||||||||||||||||||
Gain on sale of Healthcare Technologies | — | (156.3) | 156.3 | (100.0) | % | |||||||||||||||||||||
13,094.5 | 15,336.1 | (2,241.6) | (14.6) | % | ||||||||||||||||||||||
Operating (loss) income | (264.9) | 891.2 | (1,156.1) | (129.7) | % | |||||||||||||||||||||
Interest and Other Financing Costs, net | 382.8 | 335.0 | 47.8 | 14.3 | % | |||||||||||||||||||||
(Loss) Income Before Income Taxes | (647.7) | 556.2 | (1,203.9) | (216.5) | % | |||||||||||||||||||||
(Benefit) Provision for Income Taxes | (186.3) | 107.7 | (294.0) | (273.0) | % | |||||||||||||||||||||
Net (loss) income | $ | (461.4) | $ | 448.5 | $ | (909.9) | (202.9) | % |
Fiscal Year Ended | ||||||||||||||||||||||||||
Revenue by Segment(1) | October 2, 2020 | September 27, 2019 | $ | % | ||||||||||||||||||||||
FSS United States | $ | 7,366.7 | $ | 9,898.6 | $ | (2,531.9) | (25.6 | %) | ||||||||||||||||||
FSS International | 2,945.8 | 3,742.9 | (797.1) | (21.3 | %) | |||||||||||||||||||||
Uniform | 2,517.1 | 2,585.8 | (68.7) | (2.7 | %) | |||||||||||||||||||||
$ | 12,829.6 | $ | 16,227.3 | $ | (3,397.7) | (20.9 | %) | |||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||||
Operating Income (Loss) by Segment(1) | October 2, 2020 | September 27, 2019 | $ | % | ||||||||||||||||||||||
FSS United States | $ | 5.3 | $ | 716.8 | $ | (711.5) | (99.3 | %) | ||||||||||||||||||
FSS International | (344.2) | 142.7 | (486.9) | *** | ||||||||||||||||||||||
Uniform | 171.5 | 191.3 | (19.8) | (10.4 | %) | |||||||||||||||||||||
Corporate | (97.5) | (159.6) | 62.1 | (38.9 | %) | |||||||||||||||||||||
$ | (264.9) | $ | 891.2 | $ | (1,156.1) | (129.7 | %) |
Fiscal Year Ended | ||||||||||||||||||||||||||
October 2, 2020 | September 27, 2019 | |||||||||||||||||||||||||
Cost of services provided(1) | $ | % of Revenue | $ | % of Revenue | ||||||||||||||||||||||
FSS United States | $ | 6,889.4 | 93.5 | % | $ | 8,851.5 | 89.4 | % | ||||||||||||||||||
FSS International | 2,998.4 | 101.8 | % | 3,517.1 | 94.0 | % | ||||||||||||||||||||
Uniform | 2,105.9 | 83.7 | % | 2,164.1 | 83.7 | % | ||||||||||||||||||||
$ | 11,993.7 | 93.5 | % | $ | 14,532.7 | 89.6 | % |
Fiscal Year Ended | ||||||||||||||
Cost of services provided components | October 2, 2020 | September 27, 2019 | ||||||||||||
Food and support service costs | 25.7 | % | 27.9 | % | ||||||||||
Personnel costs(1) | 49.3 | % | 46.8 | % | ||||||||||
Other direct costs | 25.0 | % | 25.3 | % | ||||||||||
100.0 | % | 100.0 | % |
Fiscal Year Ended | Change | |||||||||||||||||||
October 2, 2020 | September 27, 2019 | % | ||||||||||||||||||
Business & Industry | $ | 1,097.3 | $ | 1,587.0 | (30.9) | % | ||||||||||||||
Education | 2,416.4 | 3,228.8 | (25.2) | % | ||||||||||||||||
Healthcare | 824.6 | 933.5 | (11.7) | % | ||||||||||||||||
Sports, Leisure & Corrections | 1,535.8 | 2,557.5 | (39.9) | % | ||||||||||||||||
Facilities & Other | 1,492.6 | 1,591.8 | (6.2) | % | ||||||||||||||||
$ | 7,366.7 | $ | 9,898.6 | (25.6) | % |
Fiscal Year Ended | |||||||||||
October 2, 2020 | September 27, 2019 | ||||||||||
Net cash provided by operating activities | $ | 176.7 | $ | 984.2 | |||||||
Net cash used in investing activities | (361.1) | (209.5) | |||||||||
Net cash provided by (used in) financing activities | 2,437.5 | (734.9) |
Fiscal Year Ended | ||||||||||||||
(in millions) | October 2, 2020 | September 27, 2019 | ||||||||||||
Net (loss) income attributable to ASI stockholder | $ | (461.5) | $ | 448.5 | ||||||||||
Interest and other financing costs, net | 382.8 | 335.0 | ||||||||||||
(Benefit) Provision for income taxes | (186.3) | 107.7 | ||||||||||||
Depreciation and amortization | 595.2 | 592.6 | ||||||||||||
Share-based compensation expense(1) | 30.3 | 55.3 | ||||||||||||
Unusual or non-recurring (gains) and losses(2) | 198.6 | (156.3) | ||||||||||||
Pro forma EBITDA for equity method investees(3) | 10.1 | 8.1 | ||||||||||||
Pro forma EBITDA for certain transactions(4) | 6.3 | 21.5 | ||||||||||||
Other(5) | 490.6 | 253.5 | ||||||||||||
Covenant Adjusted EBITDA | $ | 1,066.1 | $ | 1,665.9 |
Covenant Requirements | Actual Ratios | ||||||||||
Interest Coverage Ratio (Fixed Charge Coverage Ratio)(2) | 2.000x | 2.58x |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations as of October 2, 2020 | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Long-term borrowings(1)(2) | $ | 9,198,187 | $ | 69,932 | $ | 469,173 | $ | 6,158,580 | $ | 2,500,502 | ||||||||||||||||||||||
Finance lease obligations | 157,329 | 31,290 | 45,208 | 31,668 | 49,163 | |||||||||||||||||||||||||||
Estimated interest payments(2)(3) | 1,676,600 | 359,700 | 663,700 | 478,600 | 174,600 | |||||||||||||||||||||||||||
Operating leases and other noncancelable commitments | 476,602 | 85,005 | 123,831 | 82,990 | 184,776 | |||||||||||||||||||||||||||
Purchase obligations(4) | 816,125 | 306,984 | 241,569 | 70,164 | 197,408 | |||||||||||||||||||||||||||
Other liabilities(5) | 365,200 | 76,600 | 78,500 | 13,000 | 197,100 | |||||||||||||||||||||||||||
$ | 12,690,043 | $ | 929,511 | $ | 1,621,981 | $ | 6,835,002 | $ | 3,303,549 | |||||||||||||||||||||||
Amount of Commitment Expiration by Period | ||||||||||||||||||||||||||||||||
Other Commercial Commitments as of October 2, 2020 | Total Amounts Committed | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Letters of credit | $ | 191,667 | $ | 191,667 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
(US$ equivalent in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Fiscal Year of Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 2, 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | 31 | $ | 25 | $ | 20 | $ | 17 | $ | 2,495 | $ | 1,700 | $ | 4,288 | $ | 4,351 | ||||||||||||||||||||||||||||||||||
Average interest rate | 4.2 | % | 4.2 | % | 4.2 | % | 4.2 | % | 5.5 | % | 4.9 | % | 5.3 | % | ||||||||||||||||||||||||||||||||||||
Variable rate | $ | 70 | $ | 379 | (a) | $ | 90 | $ | 2,002 | (b) | $ | 1,676 | $ | 850 | $ | 5,067 | $ | 4,909 | ||||||||||||||||||||||||||||||||
Average interest rate | 3.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||
Interest Rate Swaps: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receive variable/pay fixed | $ | 329 | $ | 250 | $ | 1,550 | $ | — | $ | 800 | $ | — | $ | 2,929 | $ | (118) | ||||||||||||||||||||||||||||||||||
Average pay rate | 1.9 | % | 2.6 | % | 2.1 | % | — | % | 1.6 | % | — | % | ||||||||||||||||||||||||||||||||||||||
Average receive rate | 0.1 | % | 0.1 | % | 0.1 | % | — | % | 0.1 | % | — | % |
Aramark | ||||||||||||||||||||
By: | /s/ THOMAS G. ONDROF | |||||||||||||||||||
Name: | Thomas G. Ondrof | |||||||||||||||||||
Title: | Executive Vice President and Chief Financial Officer |
Name | Capacity | |||||||
/s/ JOHN J. ZILLMER | Chief Executive Officer and Director | |||||||
John J. Zillmer | (Principal Executive Officer) | |||||||
/s/ THOMAS G. ONDROF | Executive Vice President and Chief Financial Officer | |||||||
Thomas G. Ondrof | (Principal Financial Officer and Principal Accounting Officer) | |||||||
/s/ SUSAN CAMERON | Director | |||||||
Susan Cameron | ||||||||
/s/ GREG CREED | Director | |||||||
Greg Creed | ||||||||
/s/ CALVIN DARDEN | Director | |||||||
Calvin Darden | ||||||||
/s/ RICHARD W. DREILING | Director | |||||||
Richard W. Dreiling | ||||||||
/s/ IRENE M. ESTEVES | Director | |||||||
Irene M. Esteves | ||||||||
/s/ DANIEL J. HEINRICH | Director | |||||||
Daniel J. Heinrich | ||||||||
/s/ PAUL HILAL | Vice Chairman, Director | |||||||
Paul Hilal | ||||||||
/s/ KAREN KING | Director | |||||||
Karen King | ||||||||
/s/ STEPHEN I. SADOVE | Chairman, Director | |||||||
Stephen I. Sadove | ||||||||
/s/ ART WINKLEBLACK | Director | |||||||
Art Winkleblack |
Page | |||||||||||
October 2, 2020 | September 27, 2019 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 2,509,188 | $ | 246,643 | |||||||
Receivables (less allowances: 2020 - $74,925; 2019 - $49,566) | 1,431,206 | 1,806,964 | |||||||||
Inventories | 436,473 | 411,319 | |||||||||
Prepayments and other current assets | 298,944 | 193,461 | |||||||||
Total current assets | 4,675,811 | 2,658,387 | |||||||||
Property and Equipment, at cost: | |||||||||||
Land, buildings and improvements | 929,354 | 947,522 | |||||||||
Service equipment and fixtures | 4,184,603 | 3,993,014 | |||||||||
5,113,957 | 4,940,536 | ||||||||||
Less - Accumulated depreciation | (3,063,049) | (2,758,774) | |||||||||
2,050,908 | 2,181,762 | ||||||||||
Goodwill | 5,343,828 | 5,518,800 | |||||||||
Other Intangible Assets | 1,932,637 | 2,033,566 | |||||||||
Operating Lease Right-of-use Assets (see Note 8) | 551,394 | 0 | |||||||||
Other Assets | 1,158,106 | 1,343,806 | |||||||||
$ | 15,712,684 | $ | 13,736,321 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Current maturities of long-term borrowings | $ | 99,915 | $ | 69,928 | |||||||
Current operating lease liabilities (see Note 8) | 71,810 | 0 | |||||||||
Accounts payable | 663,455 | 999,517 | |||||||||
Accrued payroll and related expenses | 572,076 | 509,617 | |||||||||
Accrued expenses and other current liabilities | 940,202 | 1,126,236 | |||||||||
Total current liabilities | 2,347,458 | 2,705,298 | |||||||||
Long-Term Borrowings | 9,178,508 | 6,612,239 | |||||||||
Noncurrent Operating Lease Liabilities (see Note 8) | 341,667 | 0 | |||||||||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,099,075 | 1,088,822 | |||||||||
Redeemable Noncontrolling Interest | 9,988 | 9,915 | |||||||||
Stockholders' Equity: | |||||||||||
Common stock, par value $0.01 (authorized: 600,000,000 shares; issued: 2020—290,663,529 shares and 2019—282,919,536; and outstanding: 2020—253,042,169 shares and 2019—247,756,091 shares) | 2,907 | 2,829 | |||||||||
Capital surplus | 3,416,132 | 3,236,450 | |||||||||
Retained earnings | 532,379 | 1,107,029 | |||||||||
Accumulated other comprehensive loss | (307,258) | (216,965) | |||||||||
Treasury stock (shares held in treasury: 2020—37,621,360 shares and 2019—35,163,445 shares) | (908,172) | (809,296) | |||||||||
Total stockholders' equity | 2,735,988 | 3,320,047 | |||||||||
$ | 15,712,684 | $ | 13,736,321 |
Total Stockholders' Equity | Common Stock | Capital Surplus | Retained Earnings / (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | ||||||||||||||||||
Balance, September 30, 2016 | $ | 2,161,006 | $ | 2,726 | $ | 2,921,725 | $ | (33,778 | ) | $ | (180,783 | ) | $ | (548,884 | ) | ||||||||
Adoption of new accounting standard | 1,129 | (8,013 | ) | 9,142 | |||||||||||||||||||
Net income attributable to Aramark stockholders | 373,923 | 373,923 | |||||||||||||||||||||
Other comprehensive income | 57,023 | 57,023 | |||||||||||||||||||||
Capital contributions from issuance of common stock | 35,724 | 45 | 35,679 | ||||||||||||||||||||
Share-based compensation expense | 65,155 | 65,155 | |||||||||||||||||||||
Repurchases of common stock | (132,662 | ) | (132,662 | ) | |||||||||||||||||||
Payments of dividends | (102,237 | ) | (102,237 | ) | |||||||||||||||||||
Balance, September 29, 2017 | $ | 2,459,061 | $ | 2,771 | $ | 3,014,546 | $ | 247,050 | $ | (123,760 | ) | $ | (681,546 | ) | |||||||||
Net income attributable to Aramark stockholders | 567,885 | 567,885 | |||||||||||||||||||||
Other comprehensive income | 32,537 | 32,537 | |||||||||||||||||||||
Capital contributions from issuance of common stock | 29,621 | 22 | 29,599 | ||||||||||||||||||||
Share-based compensation expense | 88,276 | 88,276 | |||||||||||||||||||||
Repurchases of common stock | (43,406 | ) | (43,406 | ) | |||||||||||||||||||
Payments of dividends | (104,416 | ) | (104,416 | ) | |||||||||||||||||||
Balance, September 28, 2018 | $ | 3,029,558 | $ | 2,793 | $ | 3,132,421 | $ | 710,519 | $ | (91,223 | ) | $ | (724,952 | ) | |||||||||
Adoption of new accounting standard | 58,395 | 58,395 | |||||||||||||||||||||
Net income attributable to Aramark stockholders | 448,549 | 448,549 | |||||||||||||||||||||
Other comprehensive loss | (125,742 | ) | (125,742 | ) | |||||||||||||||||||
Capital contributions from issuance of common stock | 48,785 | 36 | 48,749 | ||||||||||||||||||||
Share-based compensation expense | 55,280 | 55,280 | |||||||||||||||||||||
Repurchases of common stock | (84,344 | ) | (84,344 | ) | |||||||||||||||||||
Payments of dividends | (110,434 | ) | (110,434 | ) | |||||||||||||||||||
Balance, September 27, 2019 | $ | 3,320,047 | $ | 2,829 | $ | 3,236,450 | $ | 1,107,029 | $ | (216,965 | ) | $ | (809,296 | ) |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Revenue | $ | 12,829,559 | $ | 16,227,341 | $ | 15,789,633 | |||||||||||
Costs and Expenses: | |||||||||||||||||
Cost of services provided | 11,993,667 | 14,532,662 | 13,997,911 | ||||||||||||||
Depreciation and amortization | 595,195 | 592,573 | 596,182 | ||||||||||||||
Selling and general corporate expenses | 307,016 | 367,256 | 377,129 | ||||||||||||||
Goodwill impairment | 198,600 | 0 | 0 | ||||||||||||||
Gain on sale of Healthcare Technologies | 0 | (156,309) | 0 | ||||||||||||||
13,094,478 | 15,336,182 | 14,971,222 | |||||||||||||||
Operating (loss) income | (264,919) | 891,159 | 818,411 | ||||||||||||||
Interest and Other Financing Costs, net | 382,800 | 334,987 | 346,535 | ||||||||||||||
(Loss) Income Before Income Taxes | (647,719) | 556,172 | 471,876 | ||||||||||||||
(Benefit) Provision for Income Taxes | (186,284) | 107,706 | (96,564) | ||||||||||||||
Net (loss) income | (461,435) | 448,466 | 568,440 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 | ||||||||||||||
Net (loss) income attributable to Aramark stockholders | $ | (461,529) | $ | 448,549 | $ | 567,885 | |||||||||||
(Loss) Earnings per share attributable to Aramark stockholders: | |||||||||||||||||
Basic | $ | (1.83) | $ | 1.82 | $ | 2.31 | |||||||||||
Diluted | $ | (1.83) | $ | 1.78 | $ | 2.24 | |||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||
Basic | 251,828 | 246,854 | 245,771 | ||||||||||||||
Diluted | 251,828 | 252,010 | 253,352 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Net (loss) income | $ | (461,435) | $ | 448,466 | $ | 568,440 | |||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||
Pension plan adjustments | (25,669) | (22,594) | 20,647 | ||||||||||||||
Foreign currency translation adjustments | (7,818) | (34,308) | (31,253) | ||||||||||||||
Cash flow hedges: | |||||||||||||||||
Unrealized (losses) gains arising during the period | (82,005) | (62,450) | 39,311 | ||||||||||||||
Reclassification adjustments | 25,463 | (4,798) | 3,675 | ||||||||||||||
Share of equity investee's comprehensive (loss) income | (264) | (1,592) | 157 | ||||||||||||||
Other comprehensive (loss) income, net of tax | (90,293) | (125,742) | 32,537 | ||||||||||||||
Comprehensive (loss) income | (551,728) | 322,724 | 600,977 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 | ||||||||||||||
Comprehensive (loss) income attributable to Aramark stockholders | $ | (551,822) | $ | 322,807 | $ | 600,422 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net (loss) income | $ | (461,435) | $ | 448,466 | $ | 568,440 | |||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 595,195 | 592,573 | 596,182 | ||||||||||||||
Goodwill impairment and asset write-downs | 283,743 | 0 | 0 | ||||||||||||||
Deferred income taxes | (134,048) | 40,503 | (104,289) | ||||||||||||||
Share-based compensation expense | 30,339 | 55,280 | 88,276 | ||||||||||||||
Net gain on sale of Healthcare Technologies | 0 | (139,165) | 0 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts Receivable | 362,708 | (78,771) | (45,891) | ||||||||||||||
Inventories | (25,675) | (49,732) | (40,187) | ||||||||||||||
Prepayments and Other Current Assets | (86,444) | (37,854) | 42,450 | ||||||||||||||
Accounts Payable | (342,069) | 17,680 | 26,658 | ||||||||||||||
Accrued Expenses | (143,640) | 193,532 | (111,386) | ||||||||||||||
Payments made to clients on contracts | (69,575) | (40,073) | 0 | ||||||||||||||
Changes in other noncurrent liabilities | 92,782 | 18,904 | 1,576 | ||||||||||||||
Changes in other assets | 66,650 | (41,436) | (2,225) | ||||||||||||||
Other operating activities | 8,151 | 4,320 | 32,271 | ||||||||||||||
Net cash provided by operating activities | 176,682 | 984,227 | 1,051,875 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment and other | (418,508) | (503,090) | (628,604) | ||||||||||||||
Disposals of property and equipment | 54,074 | 17,871 | 10,491 | ||||||||||||||
Proceeds from divestitures | 0 | 293,711 | 0 | ||||||||||||||
Acquisition of certain businesses, net of cash acquired | |||||||||||||||||
Working capital other than cash acquired | (3,081) | 10,634 | 37,985 | ||||||||||||||
Property and equipment | (1,264) | (3,320) | (283,447) | ||||||||||||||
Additions to goodwill, other intangible assets and other assets, net | (17,856) | (52,177) | (1,994,822) | ||||||||||||||
Proceeds from governmental agencies related to property and equipment | 23,550 | 23,025 | 0 | ||||||||||||||
Other investing activities | 1,965 | 3,825 | (6,879) | ||||||||||||||
Net cash used in investing activities | (361,120) | (209,521) | (2,865,276) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from long-term borrowings | 3,239,772 | 77,630 | 3,177,313 | ||||||||||||||
Payments of long-term borrowings | (1,000,463) | (654,560) | (973,689) | ||||||||||||||
Net change in funding under the Receivables Facility | 315,600 | 0 | (254,200) | ||||||||||||||
Payments of dividends | (110,893) | (108,439) | (103,115) | ||||||||||||||
Proceeds from issuance of common stock | 90,022 | 39,087 | 21,507 | ||||||||||||||
Repurchase of common stock | (6,540) | (50,000) | (24,410) | ||||||||||||||
Other financing activities | (89,976) | (38,610) | (49,253) | ||||||||||||||
Net cash provided by (used in) financing activities | 2,437,522 | (734,892) | 1,794,153 | ||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | 9,461 | (8,196) | (4,524) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 2,262,545 | 31,618 | (23,772) | ||||||||||||||
Cash and cash equivalents, beginning of period | 246,643 | 215,025 | 238,797 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 2,509,188 | $ | 246,643 | $ | 215,025 |
Fiscal Year Ended | ||||||||||||||||||||||||||
October 2, 2020 | September 27, 2019 | $ | % | |||||||||||||||||||||||
Revenue | $ | 12,829.6 | $ | 16,227.3 | $ | (3,397.7) | (20.9) | % | ||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||
Cost of services provided | 11,993.7 | 14,532.7 | (2,539.0) | (17.5) | % | |||||||||||||||||||||
Other operating expenses | 902.2 | 959.7 | (57.5) | (6.0) | % | |||||||||||||||||||||
Goodwill impairment | 198.6 | — | 198.6 | 100.0 | % | |||||||||||||||||||||
Gain on sale of Healthcare Technologies | — | (156.3) | 156.3 | (100.0) | % | |||||||||||||||||||||
13,094.5 | 15,336.1 | (2,241.6) | (14.6) | % | ||||||||||||||||||||||
Operating (loss) income | (264.9) | 891.2 | (1,156.1) | (129.7) | % | |||||||||||||||||||||
Interest and Other Financing Costs, net | 382.8 | 335.0 | 47.8 | 14.3 | % | |||||||||||||||||||||
(Loss) Income Before Income Taxes | (647.7) | 556.2 | (1,203.9) | (216.5) | % | |||||||||||||||||||||
(Benefit) Provision for Income Taxes | (186.3) | 107.7 | (294.0) | (273.0) | % | |||||||||||||||||||||
Net (loss) income | $ | (461.4) | $ | 448.5 | $ | (909.9) | (202.9) | % |
Fiscal Year Ended | ||||||||||||||||||||||||||
Revenue by Segment(1) | October 2, 2020 | September 27, 2019 | $ | % | ||||||||||||||||||||||
FSS United States | $ | 7,366.7 | $ | 9,898.6 | $ | (2,531.9) | (25.6 | %) | ||||||||||||||||||
FSS International | 2,945.8 | 3,742.9 | (797.1) | (21.3 | %) | |||||||||||||||||||||
Uniform | 2,517.1 | 2,585.8 | (68.7) | (2.7 | %) | |||||||||||||||||||||
$ | 12,829.6 | $ | 16,227.3 | $ | (3,397.7) | (20.9 | %) | |||||||||||||||||||
Fiscal Year Ended | ||||||||||||||||||||||||||
Operating Income (Loss) by Segment(1) | October 2, 2020 | September 27, 2019 | $ | % | ||||||||||||||||||||||
FSS United States | $ | 5.3 | $ | 716.8 | $ | (711.5) | (99.3 | %) | ||||||||||||||||||
FSS International | (344.2) | 142.7 | (486.9) | *** | ||||||||||||||||||||||
Uniform | 171.5 | 191.3 | (19.8) | (10.4 | %) | |||||||||||||||||||||
Corporate | (97.5) | (159.6) | 62.1 | (38.9 | %) | |||||||||||||||||||||
$ | (264.9) | $ | 891.2 | $ | (1,156.1) | (129.7 | %) |
Fiscal Year Ended | ||||||||||||||||||||||||||
October 2, 2020 | September 27, 2019 | |||||||||||||||||||||||||
Cost of services provided(1) | $ | % of Revenue | $ | % of Revenue | ||||||||||||||||||||||
FSS United States | $ | 6,889.4 | 93.5 | % | $ | 8,851.5 | 89.4 | % | ||||||||||||||||||
FSS International | 2,998.4 | 101.8 | % | 3,517.1 | 94.0 | % | ||||||||||||||||||||
Uniform | 2,105.9 | 83.7 | % | 2,164.1 | 83.7 | % | ||||||||||||||||||||
$ | 11,993.7 | 93.5 | % | $ | 14,532.7 | 89.6 | % |
Fiscal Year Ended | ||||||||||||||
Cost of services provided components | October 2, 2020 | September 27, 2019 | ||||||||||||
Food and support service costs | 25.7 | % | 27.9 | % | ||||||||||
Personnel costs(1) | 49.3 | % | 46.8 | % | ||||||||||
Other direct costs | 25.0 | % | 25.3 | % | ||||||||||
100.0 | % | 100.0 | % |
Fiscal Year Ended | Change | |||||||||||||||||||
October 2, 2020 | September 27, 2019 | % | ||||||||||||||||||
Business & Industry | $ | 1,097.3 | $ | 1,587.0 | (30.9) | % | ||||||||||||||
Education | 2,416.4 | 3,228.8 | (25.2) | % | ||||||||||||||||
Healthcare | 824.6 | 933.5 | (11.7) | % | ||||||||||||||||
Sports, Leisure & Corrections | 1,535.8 | 2,557.5 | (39.9) | % | ||||||||||||||||
Facilities & Other | 1,492.6 | 1,591.8 | (6.2) | % | ||||||||||||||||
$ | 7,366.7 | $ | 9,898.6 | (25.6) | % |
Fiscal Year Ended | |||||||||||
October 2, 2020 | September 27, 2019 | ||||||||||
Net cash provided by operating activities | $ | 176.7 | $ | 984.2 | |||||||
Net cash used in investing activities | (361.1) | (209.5) | |||||||||
Net cash provided by (used in) financing activities | 2,437.5 | (734.9) |
Fiscal Year Ended | ||||||||||||||
(in millions) | October 2, 2020 | September 27, 2019 | ||||||||||||
Net (loss) income attributable to ASI stockholder | $ | (461.5) | $ | 448.5 | ||||||||||
Interest and other financing costs, net | 382.8 | 335.0 | ||||||||||||
(Benefit) Provision for income taxes | (186.3) | 107.7 | ||||||||||||
Depreciation and amortization | 595.2 | 592.6 | ||||||||||||
Share-based compensation expense(1) | 30.3 | 55.3 | ||||||||||||
Unusual or non-recurring (gains) and losses(2) | 198.6 | (156.3) | ||||||||||||
Pro forma EBITDA for equity method investees(3) | 10.1 | 8.1 | ||||||||||||
Pro forma EBITDA for certain transactions(4) | 6.3 | 21.5 | ||||||||||||
Other(5) | 490.6 | 253.5 | ||||||||||||
Covenant Adjusted EBITDA | $ | 1,066.1 | $ | 1,665.9 |
Covenant Requirements | Actual Ratios | ||||||||||
Interest Coverage Ratio (Fixed Charge Coverage Ratio)(2) | 2.000x | 2.58x |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations as of October 2, 2020 | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Long-term borrowings(1)(2) | $ | 9,198,187 | $ | 69,932 | $ | 469,173 | $ | 6,158,580 | $ | 2,500,502 | ||||||||||||||||||||||
Finance lease obligations | 157,329 | 31,290 | 45,208 | 31,668 | 49,163 | |||||||||||||||||||||||||||
Estimated interest payments(2)(3) | 1,676,600 | 359,700 | 663,700 | 478,600 | 174,600 | |||||||||||||||||||||||||||
Operating leases and other noncancelable commitments | 476,602 | 85,005 | 123,831 | 82,990 | 184,776 | |||||||||||||||||||||||||||
Purchase obligations(4) | 816,125 | 306,984 | 241,569 | 70,164 | 197,408 | |||||||||||||||||||||||||||
Other liabilities(5) | 365,200 | 76,600 | 78,500 | 13,000 | 197,100 | |||||||||||||||||||||||||||
$ | 12,690,043 | $ | 929,511 | $ | 1,621,981 | $ | 6,835,002 | $ | 3,303,549 | |||||||||||||||||||||||
Amount of Commitment Expiration by Period | ||||||||||||||||||||||||||||||||
Other Commercial Commitments as of October 2, 2020 | Total Amounts Committed | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||||||||||||||
Letters of credit | $ | 191,667 | $ | 191,667 | $ | — | $ | — | $ | — | ||||||||||||||||||||||
(US$ equivalent in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expected Fiscal Year of Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of October 2, 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate | $ | 31 | $ | 25 | $ | 20 | $ | 17 | $ | 2,495 | $ | 1,700 | $ | 4,288 | $ | 4,351 | ||||||||||||||||||||||||||||||||||
Average interest rate | 4.2 | % | 4.2 | % | 4.2 | % | 4.2 | % | 5.5 | % | 4.9 | % | 5.3 | % | ||||||||||||||||||||||||||||||||||||
Variable rate | $ | 70 | $ | 379 | (a) | $ | 90 | $ | 2,002 | (b) | $ | 1,676 | $ | 850 | $ | 5,067 | $ | 4,909 | ||||||||||||||||||||||||||||||||
Average interest rate | 3.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | 1.9 | % | ||||||||||||||||||||||||||||||||||||
Interest Rate Swaps: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Receive variable/pay fixed | $ | 329 | $ | 250 | $ | 1,550 | $ | — | $ | 800 | $ | — | $ | 2,929 | $ | (118) | ||||||||||||||||||||||||||||||||||
Average pay rate | 1.9 | % | 2.6 | % | 2.1 | % | — | % | 1.6 | % | — | % | ||||||||||||||||||||||||||||||||||||||
Average receive rate | 0.1 | % | 0.1 | % | 0.1 | % | — | % | 0.1 | % | — | % |
Aramark | ||||||||||||||||||||
By: | /s/ THOMAS G. ONDROF | |||||||||||||||||||
Name: | Thomas G. Ondrof | |||||||||||||||||||
Title: | Executive Vice President and Chief Financial Officer |
Name | Capacity | |||||||
/s/ JOHN J. ZILLMER | Chief Executive Officer and Director | |||||||
John J. Zillmer | (Principal Executive Officer) | |||||||
/s/ THOMAS G. ONDROF | Executive Vice President and Chief Financial Officer | |||||||
Thomas G. Ondrof | (Principal Financial Officer and Principal Accounting Officer) | |||||||
/s/ SUSAN CAMERON | Director | |||||||
Susan Cameron | ||||||||
/s/ GREG CREED | Director | |||||||
Greg Creed | ||||||||
/s/ CALVIN DARDEN | Director | |||||||
Calvin Darden | ||||||||
/s/ RICHARD W. DREILING | Director | |||||||
Richard W. Dreiling | ||||||||
/s/ IRENE M. ESTEVES | Director | |||||||
Irene M. Esteves | ||||||||
/s/ DANIEL J. HEINRICH | Director | |||||||
Daniel J. Heinrich | ||||||||
/s/ PAUL HILAL | Vice Chairman, Director | |||||||
Paul Hilal | ||||||||
/s/ KAREN KING | Director | |||||||
Karen King | ||||||||
/s/ STEPHEN I. SADOVE | Chairman, Director | |||||||
Stephen I. Sadove | ||||||||
/s/ ART WINKLEBLACK | Director | |||||||
Art Winkleblack |
Page | |||||||||||
October 2, 2020 | September 27, 2019 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | 2,509,188 | $ | 246,643 | |||||||
Receivables (less allowances: 2020 - $74,925; 2019 - $49,566) | 1,431,206 | 1,806,964 | |||||||||
Inventories | 436,473 | 411,319 | |||||||||
Prepayments and other current assets | 298,944 | 193,461 | |||||||||
Total current assets | 4,675,811 | 2,658,387 | |||||||||
Property and Equipment, at cost: | |||||||||||
Land, buildings and improvements | 929,354 | 947,522 | |||||||||
Service equipment and fixtures | 4,184,603 | 3,993,014 | |||||||||
5,113,957 | 4,940,536 | ||||||||||
Less - Accumulated depreciation | (3,063,049) | (2,758,774) | |||||||||
2,050,908 | 2,181,762 | ||||||||||
Goodwill | 5,343,828 | 5,518,800 | |||||||||
Other Intangible Assets | 1,932,637 | 2,033,566 | |||||||||
Operating Lease Right-of-use Assets (see Note 8) | 551,394 | 0 | |||||||||
Other Assets | 1,158,106 | 1,343,806 | |||||||||
$ | 15,712,684 | $ | 13,736,321 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Current maturities of long-term borrowings | $ | 99,915 | $ | 69,928 | |||||||
Current operating lease liabilities (see Note 8) | 71,810 | 0 | |||||||||
Accounts payable | 663,455 | 999,517 | |||||||||
Accrued payroll and related expenses | 572,076 | 509,617 | |||||||||
Accrued expenses and other current liabilities | 940,202 | 1,126,236 | |||||||||
Total current liabilities | 2,347,458 | 2,705,298 | |||||||||
Long-Term Borrowings | 9,178,508 | 6,612,239 | |||||||||
Noncurrent Operating Lease Liabilities (see Note 8) | 341,667 | 0 | |||||||||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,099,075 | 1,088,822 | |||||||||
Redeemable Noncontrolling Interest | 9,988 | 9,915 | |||||||||
Stockholders' Equity: | |||||||||||
Common stock, par value $0.01 (authorized: 600,000,000 shares; issued: 2020—290,663,529 shares and 2019—282,919,536; and outstanding: 2020—253,042,169 shares and 2019—247,756,091 shares) | 2,907 | 2,829 | |||||||||
Capital surplus | 3,416,132 | 3,236,450 | |||||||||
Retained earnings | 532,379 | 1,107,029 | |||||||||
Accumulated other comprehensive loss | (307,258) | (216,965) | |||||||||
Treasury stock (shares held in treasury: 2020—37,621,360 shares and 2019—35,163,445 shares) | (908,172) | (809,296) | |||||||||
Total stockholders' equity | 2,735,988 | 3,320,047 | |||||||||
$ | 15,712,684 | $ | 13,736,321 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Revenue | $ | 12,829,559 | $ | 16,227,341 | $ | 15,789,633 | |||||||||||
Costs and Expenses: | |||||||||||||||||
Cost of services provided | 11,993,667 | 14,532,662 | 13,997,911 | ||||||||||||||
Depreciation and amortization | 595,195 | 592,573 | 596,182 | ||||||||||||||
Selling and general corporate expenses | 307,016 | 367,256 | 377,129 | ||||||||||||||
Goodwill impairment | 198,600 | 0 | 0 | ||||||||||||||
Gain on sale of Healthcare Technologies | 0 | (156,309) | 0 | ||||||||||||||
13,094,478 | 15,336,182 | 14,971,222 | |||||||||||||||
Operating (loss) income | (264,919) | 891,159 | 818,411 | ||||||||||||||
Interest and Other Financing Costs, net | 382,800 | 334,987 | 346,535 | ||||||||||||||
(Loss) Income Before Income Taxes | (647,719) | 556,172 | 471,876 | ||||||||||||||
(Benefit) Provision for Income Taxes | (186,284) | 107,706 | (96,564) | ||||||||||||||
Net (loss) income | (461,435) | 448,466 | 568,440 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 | ||||||||||||||
Net (loss) income attributable to Aramark stockholders | $ | (461,529) | $ | 448,549 | $ | 567,885 | |||||||||||
(Loss) Earnings per share attributable to Aramark stockholders: | |||||||||||||||||
Basic | $ | (1.83) | $ | 1.82 | $ | 2.31 | |||||||||||
Diluted | $ | (1.83) | $ | 1.78 | $ | 2.24 | |||||||||||
Weighted Average Shares Outstanding: | |||||||||||||||||
Basic | 251,828 | 246,854 | 245,771 | ||||||||||||||
Diluted | 251,828 | 252,010 | 253,352 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Net (loss) income | $ | (461,435) | $ | 448,466 | $ | 568,440 | |||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||
Pension plan adjustments | (25,669) | (22,594) | 20,647 | ||||||||||||||
Foreign currency translation adjustments | (7,818) | (34,308) | (31,253) | ||||||||||||||
Cash flow hedges: | |||||||||||||||||
Unrealized (losses) gains arising during the period | (82,005) | (62,450) | 39,311 | ||||||||||||||
Reclassification adjustments | 25,463 | (4,798) | 3,675 | ||||||||||||||
Share of equity investee's comprehensive (loss) income | (264) | (1,592) | 157 | ||||||||||||||
Other comprehensive (loss) income, net of tax | (90,293) | (125,742) | 32,537 | ||||||||||||||
Comprehensive (loss) income | (551,728) | 322,724 | 600,977 | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 | ||||||||||||||
Comprehensive (loss) income attributable to Aramark stockholders | $ | (551,822) | $ | 322,807 | $ | 600,422 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net (loss) income | $ | (461,435) | $ | 448,466 | $ | 568,440 | |||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 595,195 | 592,573 | 596,182 | ||||||||||||||
Goodwill impairment and asset write-downs | 283,743 | 0 | 0 | ||||||||||||||
Deferred income taxes | (134,048) | 40,503 | (104,289) | ||||||||||||||
Share-based compensation expense | 30,339 | 55,280 | 88,276 | ||||||||||||||
Net gain on sale of Healthcare Technologies | 0 | (139,165) | 0 | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts Receivable | 362,708 | (78,771) | (45,891) | ||||||||||||||
Inventories | (25,675) | (49,732) | (40,187) | ||||||||||||||
Prepayments and Other Current Assets | (86,444) | (37,854) | 42,450 | ||||||||||||||
Accounts Payable | (342,069) | 17,680 | 26,658 | ||||||||||||||
Accrued Expenses | (143,640) | 193,532 | (111,386) | ||||||||||||||
Payments made to clients on contracts | (69,575) | (40,073) | 0 | ||||||||||||||
Changes in other noncurrent liabilities | 92,782 | 18,904 | 1,576 | ||||||||||||||
Changes in other assets | 66,650 | (41,436) | (2,225) | ||||||||||||||
Other operating activities | 8,151 | 4,320 | 32,271 | ||||||||||||||
Net cash provided by operating activities | 176,682 | 984,227 | 1,051,875 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of property and equipment and other | (418,508) | (503,090) | (628,604) | ||||||||||||||
Disposals of property and equipment | 54,074 | 17,871 | 10,491 | ||||||||||||||
Proceeds from divestitures | 0 | 293,711 | 0 | ||||||||||||||
Acquisition of certain businesses, net of cash acquired | |||||||||||||||||
Working capital other than cash acquired | (3,081) | 10,634 | 37,985 | ||||||||||||||
Property and equipment | (1,264) | (3,320) | (283,447) | ||||||||||||||
Additions to goodwill, other intangible assets and other assets, net | (17,856) | (52,177) | (1,994,822) | ||||||||||||||
Proceeds from governmental agencies related to property and equipment | 23,550 | 23,025 | 0 | ||||||||||||||
Other investing activities | 1,965 | 3,825 | (6,879) | ||||||||||||||
Net cash used in investing activities | (361,120) | (209,521) | (2,865,276) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from long-term borrowings | 3,239,772 | 77,630 | 3,177,313 | ||||||||||||||
Payments of long-term borrowings | (1,000,463) | (654,560) | (973,689) | ||||||||||||||
Net change in funding under the Receivables Facility | 315,600 | 0 | (254,200) | ||||||||||||||
Payments of dividends | (110,893) | (108,439) | (103,115) | ||||||||||||||
Proceeds from issuance of common stock | 90,022 | 39,087 | 21,507 | ||||||||||||||
Repurchase of common stock | (6,540) | (50,000) | (24,410) | ||||||||||||||
Other financing activities | (89,976) | (38,610) | (49,253) | ||||||||||||||
Net cash provided by (used in) financing activities | 2,437,522 | (734,892) | 1,794,153 | ||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | 9,461 | (8,196) | (4,524) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 2,262,545 | 31,618 | (23,772) | ||||||||||||||
Cash and cash equivalents, beginning of period | 246,643 | 215,025 | 238,797 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 2,509,188 | $ | 246,643 | $ | 215,025 |
Total Stockholders' Equity | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | ||||||||||||||||||||||||||||||
Balance, September 29, 2017 | $ | 2,459,061 | $ | 2,771 | $ | 3,014,546 | $ | 247,050 | $ | (123,760) | $ | (681,546) | |||||||||||||||||||||||
Net income attributable to Aramark stockholders | 567,885 | 567,885 | |||||||||||||||||||||||||||||||||
Other comprehensive income | 32,537 | 32,537 | |||||||||||||||||||||||||||||||||
Capital contributions from issuance of common stock | 29,621 | 22 | 29,599 | ||||||||||||||||||||||||||||||||
Share-based compensation expense | 88,276 | 88,276 | |||||||||||||||||||||||||||||||||
Repurchases of common stock | (43,406) | (43,406) | |||||||||||||||||||||||||||||||||
Payments of dividends | (104,416) | (104,416) | |||||||||||||||||||||||||||||||||
Balance, September 28, 2018 | $ | 3,029,558 | $ | 2,793 | $ | 3,132,421 | $ | 710,519 | $ | (91,223) | $ | (724,952) | |||||||||||||||||||||||
Adoption of new accounting standard | 58,395 | 58,395 | |||||||||||||||||||||||||||||||||
Net income attributable to Aramark stockholders | 448,549 | 448,549 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (125,742) | (125,742) | |||||||||||||||||||||||||||||||||
Capital contributions from issuance of common stock | 48,785 | 36 | 48,749 | ||||||||||||||||||||||||||||||||
Share-based compensation expense | 55,280 | 55,280 | |||||||||||||||||||||||||||||||||
Repurchases of common stock | (84,344) | (84,344) | |||||||||||||||||||||||||||||||||
Payments of dividends | (110,434) | (110,434) | |||||||||||||||||||||||||||||||||
Balance, September 27, 2019 | $ | 3,320,047 | $ | 2,829 | $ | 3,236,450 | $ | 1,107,029 | $ | (216,965) | $ | (809,296) | |||||||||||||||||||||||
Net loss attributable to Aramark stockholders | (461,529) | (461,529) | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (90,293) | (90,293) | |||||||||||||||||||||||||||||||||
Capital contributions from issuance of common stock | 134,607 | 78 | 134,529 | ||||||||||||||||||||||||||||||||
Capital contributions from stockholder | 14,814 | 14,814 | |||||||||||||||||||||||||||||||||
Share-based compensation expense | 30,339 | 30,339 | |||||||||||||||||||||||||||||||||
Repurchases of common stock | (98,876) | (98,876) | |||||||||||||||||||||||||||||||||
Payments of dividends | (113,121) | (113,121) | |||||||||||||||||||||||||||||||||
Balance, October 2, 2020 | $ | 2,735,988 | $ | 2,907 | $ | 3,416,132 | $ | 532,379 | $ | (307,258) | $ | (908,172) |
Fiscal Year Ended | |||||||||||||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||||||||||||||
Pre-Tax Amount | Tax Effect | After-Tax Amount | Pre-Tax Amount | Tax Effect | After-Tax Amount | Pre-Tax Amount | Tax Effect | After-Tax Amount | |||||||||||||||
Net income | $ | 448,466 | $ | 568,440 | $ | 374,187 | |||||||||||||||||
Pension plan adjustments | (29,137 | ) | 6,543 | (22,594 | ) | 29,650 | (9,003 | ) | 20,647 | 22,548 | (2,556 | ) | 19,992 | ||||||||||
Foreign currency translation adjustments | (34,099 | ) | (209 | ) | (34,308 | ) | (31,003 | ) | (250 | ) | (31,253 | ) | 5,903 | — | 5,903 | ||||||||
Cash flow hedges: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the period | (84,392 | ) | 21,942 | (62,450 | ) | 55,445 | (16,134 | ) | 39,311 | 31,884 | (12,435 | ) | 19,449 | ||||||||||
Reclassification adjustments | (6,484 | ) | 1,686 | (4,798 | ) | 5,185 | (1,510 | ) | 3,675 | 16,606 | (6,476 | ) | 10,130 | ||||||||||
Share of equity investee's comprehensive income (loss) | (1,592 | ) | — | (1,592 | ) | 157 | — | 157 | 2,383 | (834 | ) | 1,549 | |||||||||||
Other comprehensive income (loss) | (155,704 | ) | 29,962 | (125,742 | ) | 59,434 | (26,897 | ) | 32,537 | 79,324 | (22,301 | ) | 57,023 | ||||||||||
Comprehensive income | 322,724 | 600,977 | 431,210 | ||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83 | ) | 555 | 264 | |||||||||||||||||||
Comprehensive income attributable to Aramark stockholders | $ | 322,807 | $ | 600,422 | $ | 430,946 |
Fiscal Year Ended | |||||||||||||||||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||||||||||||||||||||
Pre-Tax Amount | Tax Effect | After-Tax Amount | Pre-Tax Amount | Tax Effect | After-Tax Amount | Pre-Tax Amount | Tax Effect | After-Tax Amount | |||||||||||||||||||||||||||
Net (loss) income | $ | (461,435) | $ | 448,466 | $ | 568,440 | |||||||||||||||||||||||||||||
Pension plan adjustments | (33,831) | 8,162 | (25,669) | (29,137) | 6,543 | (22,594) | 29,650 | (9,003) | 20,647 | ||||||||||||||||||||||||||
Foreign currency translation adjustments | (6,348) | (1,470) | (7,818) | (34,099) | (209) | (34,308) | (31,003) | (250) | (31,253) | ||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||
Unrealized (losses) gains arising during the period | (110,817) | 28,812 | (82,005) | (84,392) | 21,942 | (62,450) | 55,445 | (16,134) | 39,311 | ||||||||||||||||||||||||||
Reclassification adjustments | 34,409 | (8,946) | 25,463 | (6,484) | 1,686 | (4,798) | 5,185 | (1,510) | 3,675 | ||||||||||||||||||||||||||
Share of equity investee's comprehensive (loss) income | (264) | 0 | (264) | (1,592) | 0 | (1,592) | 157 | 0 | 157 | ||||||||||||||||||||||||||
Other comprehensive (loss) income | (116,851) | 26,558 | (90,293) | (155,704) | 29,962 | (125,742) | 59,434 | (26,897) | 32,537 | ||||||||||||||||||||||||||
Comprehensive (loss) income | (551,728) | 322,724 | 600,977 | ||||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 | ||||||||||||||||||||||||||||||||
Comprehensive (loss) income attributable to Aramark stockholders | $ | (551,822) | $ | 322,807 | $ | 600,422 |
September 27, 2019 | September 28, 2018 | ||||||
Pension plan adjustments | $ | (47,222 | ) | $ | (24,628 | ) | |
Foreign currency translation adjustments | (128,119 | ) | (93,811 | ) | |||
Cash flow hedges | (31,056 | ) | 36,192 | ||||
Share of equity investee's accumulated other comprehensive loss | (10,568 | ) | (8,976 | ) | |||
$ | (216,965 | ) | $ | (91,223 | ) |
October 2, 2020 | September 27, 2019 | ||||||||||
Pension plan adjustments | $ | (72,891) | $ | (47,222) | |||||||
Foreign currency translation adjustments | (135,937) | (128,119) | |||||||||
Cash flow hedges | (87,598) | (31,056) | |||||||||
Share of equity investee's accumulated other comprehensive loss | (10,832) | (10,568) | |||||||||
$ | (307,258) | $ | (216,965) |
September 27, 2019 | September 28, 2018 | |||||
Food | 54.3 | % | 31.6 | % | ||
Career apparel and linens(1) | 40.5 | % | 65.7 | % | ||
Parts, supplies and novelties | 5.2 | % | 2.7 | % | ||
100.0 | % | 100.0 | % |
October 2, 2020 | September 27, 2019 | |||||||||||||
Food(1) | 42.7 | % | 54.3 | % | ||||||||||
Career apparel and linens(2) | 52.2 | % | 40.5 | % | ||||||||||
Parts, supplies and novelties | 5.1 | % | 5.2 | % | ||||||||||
100.0 | % | 100.0 | % |
(1) | |||||
(2) | Career apparel and linens inventory increased during fiscal 2020 driven by increased production and distribution of PPE in the Uniform segment in response to |
October 2, 2020 | September 27, 2019 | |||||||||||||
Prepaid Insurance | $ | 13,396 | $ | 13,512 | ||||||||||
Prepaid Taxes and Licenses | 11,130 | 12,399 | ||||||||||||
Current Income Tax Asset(1) | 123,608 | 35,107 | ||||||||||||
Other Prepaid Expenses | 150,810 | 132,443 | ||||||||||||
$ | 298,944 | $ | 193,461 |
(1) | Fiscal 2020 income tax receivable driven by the net loss position during the year. |
October 2, 2020 | September 27, 2019 | |||||||||||||
Long-term prepaid rent(1) | $ | 0 | $ | 166,931 | ||||||||||
Cost to fulfill - Client(1) | 113,940 | 109,401 | ||||||||||||
Cost to fulfill - Rental merchandise in-service(2) | 311,238 | 356,853 | ||||||||||||
Long-term receivables | 28,460 | 27,574 | ||||||||||||
Miscellaneous investments(3) | 262,609 | 264,452 | ||||||||||||
Computer software costs, net(4) | 177,136 | 170,510 | ||||||||||||
Employee sales commissions(5) | 122,011 | 111,001 | ||||||||||||
Other(6) | 142,712 | 137,084 | ||||||||||||
$ | 1,158,106 | $ | 1,343,806 |
September 27, 2019 | September 28, 2018 | |||||||
Client contract investments(1) | $ | — | $ | 1,034,476 | ||||
Long-term prepaid rent(1) | 166,931 | — | ||||||
Cost to fulfill - Client(1) | 109,401 | — | ||||||
Cost to fulfill - Rental merchandise in-service(2) | 356,853 | — | ||||||
Long-term receivables | 27,574 | 90,068 | ||||||
Miscellaneous investments(3) | 264,452 | 239,547 | ||||||
Computer software costs, net(4) | 170,510 | 152,188 | ||||||
Interest rate swap agreements | — | 54,708 | ||||||
Employee sales commissions(5) | 111,001 | — | ||||||
Other(6) | 137,084 | 122,184 | ||||||
$ | 1,343,806 | $ | 1,693,171 |
(1) | Prior to the Company's adoption of ASC 606, Revenue from Contracts with Customers, in fiscal 2019, client contract investments generally represented a cash payment provided by the Company Subsequent to adoption of ASC 606 in fiscal 2019, these balances were reclassified to either leasehold improvements in "Property and Equipment, net" or to long-term prepaid rent or costs to fulfill - client in "Other Assets" and continue to be expensed over the contract life (see Note 7). | ||||
Due to the Company's adoption of ASC | |||||
(2) | Costs to fulfill | ||||
(3) | Miscellaneous investments represent investments in 50% or less owned entities, including the Company's 50% ownership in AIM Services Co., Ltd., a Japanese food and support services company (approximately $182.9 million and $180.5 million at October 2, 2020 and | ||||
(4) | Computer software costs represent capitalized costs incurred to purchase or develop software for internal use, and are amortized over the estimated useful life of the software, generally a period of three to | ||||
(5) | |||||
(6) | Other |
October 2, 2020 | September 27, 2019 | |||||||||||||
Deferred income(1)(2) | $ | 291,680 | $ | 345,840 | ||||||||||
Accrued client expenses(2) | 44,419 | 105,636 | ||||||||||||
Accrued taxes | 53,146 | 61,816 | ||||||||||||
Accrued insurance(3) and interest | 174,048 | 192,695 | ||||||||||||
Other | 376,909 | 420,249 | ||||||||||||
$ | 940,202 | $ | 1,126,236 |
September 27, 2019 | September 28, 2018 | |||||||
Deferred income(1) | $ | 345,840 | $ | 299,089 | ||||
Accrued client expenses | 105,636 | 98,282 | ||||||
Accrued taxes | 61,816 | 96,855 | ||||||
Accrued insurance and interest | 192,695 | 164,890 | ||||||
Other | 420,249 | 358,917 | ||||||
$ | 1,126,236 | $ | 1,018,033 |
(1) | Includes consideration received in advance from customers prior to the service being performed ($ | ||||
(2) | Decreases in fiscal 2020 driven by the impact of COVID-19, as clients ceased or reduced operations. See below and Note 7. | ||||
(3) | The Company is self-insured for certain obligations related to its employee health care benefit programs as well as for certain risks retained under its general liability, automobile liability and workers’ compensation liability programs. Reserves are estimated through actuarialmethods, with the assistance of third-party actuaries using loss development assumptions based on our claims history. |
October 2, 2020 | September 27, 2019 | |||||||||||||
Deferred income taxes (see Note 10) | $ | 398,777 | $ | 519,904 | ||||||||||
Deferred compensation | 210,884 | 212,090 | ||||||||||||
Pension-related liabilities | 18,044 | 21,367 | ||||||||||||
Interest rate swap agreements | 116,882 | 43,112 | ||||||||||||
Insurance reserves(1) | 143,923 | 125,293 | ||||||||||||
Other noncurrent liabilities(2) | 210,565 | 167,056 | ||||||||||||
$ | 1,099,075 | $ | 1,088,822 |
September 27, 2019 | September 28, 2018 | |||||||
Deferred income tax payable | $ | 519,904 | $ | 503,429 | ||||
Deferred compensation | 212,090 | 226,558 | ||||||
Pension-related liabilities | 21,367 | 28,478 | ||||||
Interest rate swap agreements | 43,112 | — | ||||||
Other noncurrent liabilities | 292,349 | 218,750 | ||||||
$ | 1,088,822 | $ | 977,215 |
(1) | The Company is self-insured for certain obligations related to its employee health care benefit programs as well as for certain risks retained under its general liability, automobile liability and workers’ compensation liability programs. Reserves are estimated through actuarialmethods, with the assistance of third-party actuaries using loss development assumptions based on our claims history. | ||||
(2) | Fiscal 2020 includes the payment deferral related to the employer portion of social security taxes as permitted under the Coronavirus Aid, Relief and Economic Security Act. |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||
(dollars in millions) | September 27, 2019 | September 28, 2018 | September 29, 2017 | (dollars in millions) | October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||||||||||||
Interest paid | $ | 306.2 | $ | 307.1 | $ | 201.7 | Interest paid | $ | 353.6 | $ | 306.2 | $ | 307.1 | |||||||||||||||||||
Income taxes paid (refunded)(1) | 139.3 | (1.1 | ) | 126.3 | Income taxes paid (refunded)(1) | 40.2 | 139.3 | (1.1) |
(1) | During fiscal 2018, the Company was in a net refund position, primarily due to the impact of the |
Current assets | $ | 237,807 | |
Noncurrent assets | 963,078 | ||
Total assets | $ | 1,200,885 | |
Current liabilities | $ | 137,867 | |
Noncurrent liabilities | 67,590 | ||
Total liabilities | $ | 205,457 |
Current assets | $ | 237,807 | |||
Noncurrent assets | 963,078 | ||||
Total assets | $ | 1,200,885 | |||
Current liabilities | $ | 137,867 | |||
Noncurrent liabilities | 67,590 | ||||
Total liabilities | $ | 205,457 |
Estimated Fair Value (in millions) | Weighted-Average Estimated Useful Life (in years) | ||||||
Customer relationship assets | $ | 297.0 | 15 | ||||
Trade names | 24.0 | 3 | to indefinite | ||||
Total intangible assets | $ | 321.0 |
Estimated Fair Value (in millions) | Weighted-Average Estimated Useful Life (in years) | |||||||||||||||||||
Customer relationship assets | $ | 297.0 | 15 | |||||||||||||||||
Trade names | 24.0 | 3 | to indefinite | |||||||||||||||||
Total intangible assets | $ | 321.0 |
Current assets | $ | 157,614 | |
Noncurrent assets | 1,345,532 | ||
Total assets | $ | 1,503,146 | |
Current liabilities | $ | 111,087 | |
Noncurrent liabilities | 5,681 | ||
Total liabilities | $ | 116,768 |
Current assets | $ | 157,614 | |||
Noncurrent assets | 1,345,532 | ||||
Total assets | $ | 1,503,146 | |||
Current liabilities | $ | 111,087 | |||
Noncurrent liabilities | 5,681 | ||||
Total liabilities | $ | 116,768 |
Estimated Fair Value (in millions) | Weighted-Average Estimated Useful Life (in years) | |||||
Customer relationship assets | $ | 567.0 | 15 | |||
Trade name | 222.0 | indefinite | ||||
Total intangible assets | $ | 789.0 |
Estimated Fair Value (in millions) | Weighted-Average Estimated Useful Life (in years) | ||||||||||||||||
Customer relationship assets | $ | 567.0 | 15 | ||||||||||||||
Trade name | 222.0 | indefinite | |||||||||||||||
Total intangible assets | $ | 789.0 |
Fiscal Year Ended | ||||||||
Unaudited (in thousands) | September 28, 2018 | |||||||
Total revenue | $ | 16,014,463 | ||||||
Net income | 624,334 |
Fiscal Year Ended | ||||||||
Unaudited (in thousands) | September 28, 2018 | September 29, 2017 | ||||||
Total revenue | $ | 16,014,463 | $ | 15,378,832 | ||||
Net income | 624,334 | 328,932 |
FSS United States | $ | 51.8 | |||
FSS International | 87.3 | ||||
Uniform | 4.9 | ||||
Corporate | 1.8 | ||||
$ | 145.8 |
(in millions) | September 28, 2018 | Net Charges | Payments and Other | September 27, 2019 | |||||||||
Severance and Related Costs Accrual | $ | 16.6 | 18.7 | (23.4 | ) | $ | 11.9 |
(in millions) | September 27, 2019 | Charges | Payments and Other | October 2, 2020 | |||||||||||||||||||
Fiscal 2018 Reorganization | $ | 11.9 | $ | 0 | $ | (9.4) | $ | 2.5 | |||||||||||||||
Fiscal 2020 Reorganization | 0 | 145.8 | (27.3) | 118.5 | |||||||||||||||||||
Total Reorganization | $ | 11.9 | $ | 145.8 | $ | (36.7) | $ | 121.0 |
Segment | September 28, 2018 | Acquisitions and Divestitures | Translation and Other | September 27, 2019 | |||||||||||
FSS United States(1) | $ | 4,028,454 | $ | (81,823 | ) | $ | 2,587 | $ | 3,949,218 | ||||||
FSS International | 626,379 | 16,135 | (34,046 | ) | 608,468 | ||||||||||
Uniform | 955,735 | 3,981 | 1,398 | 961,114 | |||||||||||
$ | 5,610,568 | $ | (61,707 | ) | $ | (30,061 | ) | $ | 5,518,800 |
Segment | September 27, 2019 | Acquisitions and Divestitures | Impairments | Translation | October 2, 2020 | ||||||||||||||||||||||||
FSS United States | $ | 3,949,218 | $ | 4,118 | $ | 0 | $ | (4) | $ | 3,953,332 | |||||||||||||||||||
FSS International | 608,468 | 220 | (198,600) | 16,030 | 426,118 | ||||||||||||||||||||||||
Uniform | 961,114 | 3,307 | 0 | (43) | 964,378 | ||||||||||||||||||||||||
$ | 5,518,800 | $ | 7,645 | $ | (198,600) | $ | 15,983 | $ | 5,343,828 |
September 27, 2019 | September 28, 2018 | ||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||
Customer relationship assets | $ | 2,183,492 | $ | (1,193,525 | ) | $ | 989,967 | $ | 2,244,215 | $ | (1,156,811 | ) | $ | 1,087,404 | |||||||||
Trade names | 1,047,959 | (4,360 | ) | 1,043,599 | 1,050,825 | (1,385 | ) | 1,049,440 | |||||||||||||||
$ | 3,231,451 | $ | (1,197,885 | ) | $ | 2,033,566 | $ | 3,295,040 | $ | (1,158,196 | ) | $ | 2,136,844 |
October 2, 2020 | September 27, 2019 | ||||||||||||||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||||||||||
Customer relationship assets | $ | 2,195,700 | $ | (1,308,002) | $ | 887,698 | $ | 2,183,492 | $ | (1,193,525) | $ | 989,967 | |||||||||||||||||||||||
Trade names | 1,052,744 | (7,805) | 1,044,939 | 1,047,959 | (4,360) | 1,043,599 | |||||||||||||||||||||||||||||
$ | 3,248,444 | $ | (1,315,807) | $ | 1,932,637 | $ | 3,231,451 | $ | (1,197,885) | $ | 2,033,566 |
2020 | $ | 113,136 | |
2021 | 105,929 | ||
2022 | 85,709 | ||
2023 | 78,843 | ||
2024 | 78,464 |
2021 | $ | 105,917 | |||
2022 | 85,813 | ||||
2023 | 78,854 | ||||
2024 | 78,453 | ||||
2025 | 78,580 |
September 27, 2019 | September 28, 2018 | October 2, 2020 | September 27, 2019 | |||||||||||||||||||
Senior secured revolving credit facility, due October 2023 | $ | 51,410 | $ | 77,000 | Senior secured revolving credit facility, due October 2023 | $ | 849,895 | $ | 51,410 | |||||||||||||
Senior secured term loan facility, due October 2023 | 507,887 | 538,674 | Senior secured term loan facility, due October 2023 | 485,346 | 507,887 | |||||||||||||||||
Senior secured term loan facility, due March 2024 | 829,344 | 1,325,923 | Senior secured term loan facility, due March 2024 | 830,133 | 829,344 | |||||||||||||||||
Senior secured term loan facility, due March 2025 | 1,658,026 | 1,656,919 | Senior secured term loan facility, due March 2025 | 1,659,194 | 1,658,026 | |||||||||||||||||
Senior secured term loan facility, due January 2027 | Senior secured term loan facility, due January 2027 | 888,540 | 0 | |||||||||||||||||||
5.125% senior notes, due January 2024 | 902,351 | 902,908 | 5.125% senior notes, due January 2024 | 0 | 902,351 | |||||||||||||||||
5.000% senior notes, due April 2025 | 592,087 | 590,884 | 5.000% senior notes, due April 2025 | 593,381 | 592,087 | |||||||||||||||||
3.125% senior notes, due April 2025(1) | 352,363 | 373,240 | 3.125% senior notes, due April 2025(1) | 377,960 | 352,363 | |||||||||||||||||
6.375% senior notes, due May 2025 | 6.375% senior notes, due May 2025 | 1,479,341 | 0 | |||||||||||||||||||
4.750% senior notes, due June 2026 | 494,731 | 494,082 | 4.750% senior notes, due June 2026 | 495,426 | 494,731 | |||||||||||||||||
5.000% senior notes, due February 2028 | 1,137,625 | 1,136,472 | 5.000% senior notes, due February 2028 | 1,138,864 | 1,137,625 | |||||||||||||||||
Capital leases | 148,754 | 143,388 | ||||||||||||||||||||
Receivables Facility, due June 2022 | Receivables Facility, due June 2022 | 315,600 | 0 | |||||||||||||||||||
Finance leases | Finance leases | 142,588 | 148,754 | |||||||||||||||||||
Other | 7,589 | 4,494 | Other | 22,155 | 7,589 | |||||||||||||||||
6,682,167 | 7,243,984 | 9,278,423 | 6,682,167 | |||||||||||||||||||
Less—current portion | (69,928 | ) | (30,907 | ) | Less—current portion | (99,915) | (69,928) | |||||||||||||||
$ | 6,612,239 | $ | 7,213,077 | $ | 9,178,508 | $ | 6,612,239 |
(1) | This is a Euro denominated borrowing. See the disclosure below in the Senior Notes section for further information. |
2020 | $ | 69,928 | |
2021 | 69,936 | ||
2022 | 72,695 | ||
2023 | 93,736 | ||
2024 | 2,106,525 | ||
Thereafter | 4,307,650 |
2021 | $ | 101,222 | |||
2022 | 404,464 | ||||
2023 | 109,917 | ||||
2024 | 2,018,862 | ||||
2025 | 4,171,386 | ||||
Thereafter | 2,549,665 |
Fiscal Year Ended | ||||||||||||
September 27, 2019 | September 28, 2018(1) | September 29, 2017(1) | ||||||||||
Interest expense | $ | 352,812 | $ | 353,048 | $ | 285,995 | ||||||
Interest income | (28,985 | ) | (16,964 | ) | (12,372 | ) | ||||||
Other financing costs | 11,160 | 10,451 | 7,362 | |||||||||
Total | $ | 334,987 | $ | 346,535 | $ | 280,985 |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
Interest expense | $ | 389,434 | $ | 352,812 | $ | 353,048 | ||||||||||||||
Interest income | (14,990) | (28,985) | (16,964) | |||||||||||||||||
Other financing costs | 8,356 | 11,160 | 10,451 | |||||||||||||||||
Total | $ | 382,800 | $ | 334,987 | $ | 346,535 |
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
Interest rate swap agreements(1) | $ | (110,817) | $ | (84,392) | $ | 55,445 |
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||
Interest rate swap agreements | $ | (84,392 | ) | $ | 55,445 | $ | 31,884 |
(1) | Unrealized loss during fiscal 2020 was impacted by changes in interest rates due to actions taken by the federal government in response to COVID-19. |
Balance Sheet Location | September 27, 2019 | September 28, 2018 | ||||||||
ASSETS | ||||||||||
Designated as hedging instruments: | ||||||||||
Interest rate swap agreements | Prepayments and other current assets | $ | — | $ | 1,459 | |||||
Interest rate swap agreements | Noncurrent Assets | — | 54,708 | |||||||
Not designated as hedging instruments: | ||||||||||
Foreign currency forward exchange contracts | Prepayments and other current assets | $ | 64 | $ | 209 | |||||
Gasoline and diesel fuel agreements | Prepayments and other current assets | — | 3,623 | |||||||
$ | 64 | $ | 59,999 | |||||||
LIABILITIES | ||||||||||
Designated as hedging instruments: | ||||||||||
Interest rate swap agreements | Other Noncurrent Liabilities | $ | 43,112 | $ | — | |||||
Not designated as hedging instruments: | ||||||||||
Gasoline and diesel fuel agreements | Accounts Payable | $ | 462 | $ | — | |||||
$ | 43,574 | $ | — |
Balance Sheet Location | October 2, 2020 | September 27, 2019 | ||||||||||||||||||
ASSETS | ||||||||||||||||||||
Not designated as hedging instruments: | ||||||||||||||||||||
Foreign currency forward exchange contracts | Prepayments and other current assets | $ | 0 | $ | 64 | |||||||||||||||
LIABILITIES | ||||||||||||||||||||
Designated as hedging instruments: | ||||||||||||||||||||
Interest rate swap agreements | Accounts payable | 1,494 | 0 | |||||||||||||||||
Interest rate swap agreements | Other Noncurrent Liabilities | 116,882 | 43,112 | |||||||||||||||||
118,376 | 43,112 | |||||||||||||||||||
Not designated as hedging instruments: | ||||||||||||||||||||
Foreign currency forward exchange contracts | Accounts Payable | 121 | 0 | |||||||||||||||||
Gasoline and diesel fuel agreements | Accounts Payable | 1,805 | 462 | |||||||||||||||||
$ | 120,302 | $ | 43,574 |
Fiscal Year Ended | ||||||||||||||
Income Statement Location | September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||||
Designated as hedging instruments: | ||||||||||||||
Interest rate swap agreements | Interest and Other Financing Costs, net | $ | (6,484 | ) | $ | 5,185 | $ | 16,606 | ||||||
Not designated as hedging instruments: | ||||||||||||||
Gasoline and diesel fuel agreements | Costs of services provided / Selling and general corporate expenses | $ | 6,168 | $ | (7,360 | ) | $ | (1,277 | ) | |||||
Foreign currency forward exchange contracts | Interest and Other Financing Costs, net | 145 | (67 | ) | (886 | ) | ||||||||
$ | 6,313 | $ | (7,427 | ) | $ | (2,163 | ) | |||||||
$ | (171 | ) | $ | (2,242 | ) | $ | 14,443 |
Fiscal Year Ended | ||||||||||||||||||||||||||
Income Statement Location | October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||||||||||
Designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate swap agreements | Interest and Other Financing Costs, net | $ | 34,409 | $ | (6,484) | $ | 5,185 | |||||||||||||||||||
Not designated as hedging instruments: | ||||||||||||||||||||||||||
Gasoline and diesel fuel agreements | Cost of services provided / Selling and general corporate expenses | 5,768 | 6,168 | (7,360) | ||||||||||||||||||||||
Foreign currency forward exchange contracts | Interest and Other Financing Costs, net | 185 | 145 | (67) | ||||||||||||||||||||||
5,953 | 6,313 | (7,427) | ||||||||||||||||||||||||
$ | 40,362 | $ | (171) | $ | (2,242) |
September 27, 2019 | ||||||||||||
As Reported | Adoption adjustments of ASC 606 | Balances without adoption of ASC 606 | ||||||||||
ASSETS | ||||||||||||
Current Assets: | ||||||||||||
Cash and cash equivalents | $ | 246,643 | $ | — | $ | 246,643 | ||||||
Receivables, net | 1,806,964 | — | 1,806,964 | |||||||||
Inventories | 411,319 | 356,853 | 768,172 | |||||||||
Prepayments and other current assets | 193,461 | — | 193,461 | |||||||||
Total current assets | 2,658,387 | 356,853 | 3,015,240 | |||||||||
Property and Equipment, net | 2,181,762 | (785,360 | ) | 1,396,402 | ||||||||
Goodwill | 5,518,800 | — | 5,518,800 | |||||||||
Other Intangible Assets | 2,033,566 | — | 2,033,566 | |||||||||
Other Assets | 1,343,806 | 307,419 | 1,651,225 | |||||||||
$ | 13,736,321 | $ | (121,088 | ) | $ | 13,615,233 | ||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current Liabilities: | ||||||||||||
Current maturities of long-term borrowings | $ | 69,928 | $ | — | $ | 69,928 | ||||||
Accounts payable | 999,517 | — | 999,517 | |||||||||
Accrued expenses and other current liabilities | 1,635,853 | (26,665 | ) | 1,609,188 | ||||||||
Total current liabilities | 2,705,298 | (26,665 | ) | 2,678,633 | ||||||||
Long-Term Borrowings | 6,612,239 | — | 6,612,239 | |||||||||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,088,822 | (25,525 | ) | 1,063,297 | ||||||||
Redeemable Noncontrolling Interest | 9,915 | — | 9,915 | |||||||||
Stockholders' Equity: | ||||||||||||
Common stock | 2,829 | — | 2,829 | |||||||||
Capital surplus | 3,236,450 | — | 3,236,450 | |||||||||
Retained earnings | 1,107,029 | (68,898 | ) | 1,038,131 | ||||||||
Accumulated other comprehensive loss | (216,965 | ) | — | (216,965 | ) | |||||||
Treasury stock | (809,296 | ) | — | (809,296 | ) | |||||||
Total stockholders' equity | 3,320,047 | (68,898 | ) | 3,251,149 | ||||||||
$ | 13,736,321 | $ | (121,088 | ) | $ | 13,615,233 |
Fiscal year ended September 27, 2019 | ||||||||||||
As Reported | Adoption adjustments of ASC 606 | Balances without adoption of ASC 606 | ||||||||||
Revenue | $ | 16,227,341 | $ | (317,497 | ) | $ | 15,909,844 | |||||
Costs and Expenses: | ||||||||||||
Cost of services provided | 14,532,662 | (322,411 | ) | 14,210,251 | ||||||||
Depreciation and amortization | 592,573 | 18,581 | 611,154 | |||||||||
Selling and general corporate expenses | 367,256 | — | 367,256 | |||||||||
Gain on sale of Healthcare Technologies | (156,309 | ) | — | (156,309 | ) | |||||||
15,336,182 | (303,830 | ) | 15,032,352 | |||||||||
Operating income | 891,159 | (13,667 | ) | 877,492 | ||||||||
Interest and Other Financing Costs, net | 334,987 | — | 334,987 | |||||||||
Income Before Income Taxes | 556,172 | (13,667 | ) | 542,505 | ||||||||
Provision for Income Taxes | 107,706 | (3,554 | ) | 104,152 | ||||||||
Net income | 448,466 | (10,113 | ) | 438,353 | ||||||||
Less: Net loss attributable to noncontrolling interest | (83 | ) | — | (83 | ) | |||||||
Net income attributable to Aramark stockholders | $ | 448,549 | $ | (10,113 | ) | $ | 438,436 |
Fiscal Year Ended | ||||
September 27, 2019 | ||||
FSS United States: | ||||
Business & Industry | $ | 1,587.0 | ||
Education | 3,228.8 | |||
Healthcare | 933.5 | |||
Sports, Leisure & Corrections | 2,557.5 | |||
Facilities & Other | 1,591.8 | |||
Total FSS United States | $ | 9,898.6 | ||
FSS International: | ||||
Europe | 2,044.4 | |||
Rest of World | 1,698.5 | |||
Total FSS International | $ | 3,742.9 | ||
Uniform | $ | 2,585.8 | ||
Total Revenue | $ | 16,227.3 |
Fiscal Year Ended | ||||||||||||||
October 2, 2020(1) | September 27, 2019 | |||||||||||||
FSS United States: | ||||||||||||||
Business & Industry | $ | 1,097.3 | $ | 1,587.0 | ||||||||||
Education | 2,416.4 | 3,228.8 | ||||||||||||
Healthcare | 824.6 | 933.5 | ||||||||||||
Sports, Leisure & Corrections | 1,535.8 | 2,557.5 | ||||||||||||
Facilities & Other | 1,492.6 | 1,591.8 | ||||||||||||
Total FSS United States | 7,366.7 | 9,898.6 | ||||||||||||
FSS International: | ||||||||||||||
Europe | 1,473.5 | 2,044.4 | ||||||||||||
Rest of World | 1,472.3 | 1,698.5 | ||||||||||||
Total FSS International | 2,945.8 | 3,742.9 | ||||||||||||
Uniform | 2,517.1 | 2,585.8 | ||||||||||||
Total Revenue | $ | 12,829.6 | $ | 16,227.3 |
(1) | Fiscal 2020 revenue negatively impacted by COVID-19. |
Fiscal Year Ended | ||||||||||||||||||||
Income Statement Location | October 2, 2020 | September 27, 2019 | ||||||||||||||||||
Employee sales commissions | Cost of services provided | $ | 21.8 | $ | 20.0 | |||||||||||||||
Leasehold improvements | Depreciation and amortization | 160.8 | 149.0 | |||||||||||||||||
Cost to fulfill - Client | Depreciation and amortization | 20.8 | 20.5 | |||||||||||||||||
Long-term prepaid rent | Cost of services provided | 23.1 | 16.0 | |||||||||||||||||
Cost to fulfill - Rental merchandise in-service | Cost of services provided | 325.7 | 318.2 |
Balance, September 28, 2018 | Add: Net increase in current period deferred income | Less: Recognition of deferred income | Balance, September 27, 2019 | |||||||||
Deferred income | 281.5 | 1,364.3 | (1,326.8 | ) | 319.0 |
October 2, 2020 | September 27, 2019 | |||||||||||||
Deferred income(1) | $ | 263.8 | $ | 319.0 |
(1) | Due to the impact of COVID-19, the Company refunded approximately $49.2 million of advanced payments for meal plans back to its clients during fiscal 2020. |
Leases | Balance Sheet Location | October 2, 2020 | ||||||||||||||||||
Assets: | ||||||||||||||||||||
Operating(1), (2) | Operating Lease Right-of-use Assets | $ | 551,394 | |||||||||||||||||
Finance | Property and Equipment, net | 134,080 | ||||||||||||||||||
Total lease assets | $ | 685,474 | ||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Current | ||||||||||||||||||||
Operating(2) | Current operating lease liabilities | $ | 71,810 | |||||||||||||||||
Finance | Current maturities of long-term borrowings | 29,983 | ||||||||||||||||||
Noncurrent | ||||||||||||||||||||
Operating(2) | Noncurrent Operating Lease Liabilities | 341,667 | ||||||||||||||||||
Finance | Long-term borrowings | 112,605 | ||||||||||||||||||
Total lease liabilities | $ | 556,065 | ||||||||||||||||||
Weighted average remaining lease term (in years) | ||||||||||||||||||||
Operating leases | 8.8 | |||||||||||||||||||
Finance leases | 8.5 | |||||||||||||||||||
Weighted average discount rate | ||||||||||||||||||||
Operating leases | 3.6 | % | ||||||||||||||||||
Finance leases | 4.2 | % |
(1) | Includes $193.6 million of long-term prepaid rent as of October 2, 2020. | ||||
(2) | Includes the write-down of certain rental properties from disposal by abandonment and the write-off of certain right-of-use assets related to client contracts that were reassessed due to the impact of COVID-19 during fiscal 2020 (see Note 1). |
Fiscal Year Ended | ||||||||||||||||||||
Lease Cost | Income Statement Location | October 2, 2020 | ||||||||||||||||||
Operating lease cost(1): | ||||||||||||||||||||
Fixed lease costs | Cost of services provided | $ | 121,434 | |||||||||||||||||
Variable lease costs(2) | Cost of services provided | 392,700 | ||||||||||||||||||
Short-term lease costs | Cost of services provided | 59,865 | ||||||||||||||||||
Finance lease cost(3): | ||||||||||||||||||||
Amortization of right-of-use-assets | Depreciation and amortization | 30,542 | ||||||||||||||||||
Interest on lease liabilities | Interest and Other Financing Costs, net | 5,319 | ||||||||||||||||||
Net lease cost | $ | 609,860 |
(1) | Excludes sublease income, which is immaterial. | ||||
(2) | Includes $375.0 million of costs related to leases associated with revenue contracts with customers for fiscal 2020. These costs represent the rent the Company pays its clients to operate at their locations, typically based on a percentage of sales. Variable lease costs during fiscal 2020 were impacted by COVID-19. | ||||
(3) | Excludes variable lease costs, which are immaterial. |
Fiscal Year Ended | ||||||||||||||
October 2, 2020 | ||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash flows from operating leases(1) | $ | 144,792 | ||||||||||||
Operating cash flows from finance leases | 5,341 | |||||||||||||
Financing cash flows from finance leases | 34,674 | |||||||||||||
Lease assets obtained in exchange for lease obligations: | ||||||||||||||
Operating leases | $ | 90,533 | ||||||||||||
Finance leases | 29,317 |
(1) | Excludes cash paid for variable and short-term lease costs of $414.0 million and $59.9 million, respectively, that are not included within the measurement of lease liabilities. |
Operating leases | Finance leases | Total | |||||||||||||||
2021 | $ | 85,005 | $ | 31,290 | 116,295 | ||||||||||||
2022 | 68,500 | 25,467 | 93,967 | ||||||||||||||
2023 | 55,331 | 19,741 | 75,072 | ||||||||||||||
2024 | 45,581 | 17,117 | 62,698 | ||||||||||||||
2025 | 37,409 | 14,551 | 51,960 | ||||||||||||||
Thereafter | 184,776 | 49,163 | 233,939 | ||||||||||||||
Total future minimum lease payments | $ | 476,602 | $ | 157,329 | $ | 633,931 | |||||||||||
Less: Interest | (63,125) | (14,741) | (77,866) | ||||||||||||||
Present value of lease liabilities | $ | 413,477 | $ | 142,588 | $ | 556,065 |
2020 | $ | 101,061 | |||
2021 | 74,908 | ||||
2022 | 56,765 | ||||
2023 | 43,795 | ||||
2024 | 36,215 | ||||
2025-Thereafter | 214,818 | ||||
Total minimum rental obligations | $ | 527,562 |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
Service cost | $ | 2,996 | $ | 6,391 | $ | 7,121 | ||||||||||||||
Interest cost | 9,180 | 11,287 | 10,579 | |||||||||||||||||
Expected return on plan assets | (18,883) | (22,970) | (22,864) | |||||||||||||||||
Settlements and curtailments | 0 | 283 | 3,312 | |||||||||||||||||
Amortization of prior service cost | 26 | 104 | 116 | |||||||||||||||||
Recognized net loss | 2,324 | 1,094 | 1,646 | |||||||||||||||||
Net periodic pension income | $ | (4,357) | $ | (3,811) | $ | (90) |
Fiscal Year Ended | ||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | ||||||||||
Service cost | $ | 6,391 | $ | 7,121 | $ | 8,834 | ||||||
Interest cost | 11,287 | 10,579 | 8,398 | |||||||||
Expected return on plan assets | (22,970 | ) | (22,864 | ) | (18,350 | ) | ||||||
Settlements and curtailments | 283 | 3,312 | — | |||||||||
Amortization of prior service cost | 104 | 116 | 122 | |||||||||
Recognized net loss | 1,094 | 1,646 | 3,400 | |||||||||
Net periodic pension cost (income) | $ | (3,811 | ) | $ | (90 | ) | $ | 2,404 |
Change in benefit obligation: | September 27, 2019 | September 28, 2018 | ||||||
Benefit obligation, beginning | $ | 366,426 | $ | 333,672 | ||||
Impact of AmeriPride acquisition | — | 79,605 | ||||||
Foreign currency translation | (13,097 | ) | (11,312 | ) | ||||
Service cost | 6,391 | 7,121 | ||||||
Interest cost | 11,287 | 10,579 | ||||||
Employee contributions | 2,249 | 2,571 | ||||||
Actuarial loss (gain) | 49,707 | (10,869 | ) | |||||
Benefits paid | (16,681 | ) | (16,862 | ) | ||||
Settlements and curtailments(1) | (5,075 | ) | (22,662 | ) | ||||
Change in control payment | — | (5,417 | ) | |||||
Benefit obligation, ending | $ | 401,207 | $ | 366,426 | ||||
Change in plan assets: | ||||||||
Fair value of plan assets, beginning | $ | 409,826 | $ | 341,538 | ||||
Impact of AmeriPride acquisition | — | 73,273 | ||||||
Foreign currency translation | (14,360 | ) | (12,359 | ) | ||||
Employer contributions | 10,520 | 13,988 | ||||||
Employee contributions | 2,249 | 2,571 | ||||||
Actual return on plan assets | 39,280 | 23,971 | ||||||
Benefits paid | (16,681 | ) | (16,862 | ) | ||||
Settlements(1) | (4,867 | ) | (10,877 | ) | ||||
Change in control payment | — | (5,417 | ) | |||||
Fair value of plan assets, end | 425,967 | 409,826 | ||||||
Funded Status at end of year | $ | 24,760 | $ | 43,400 |
Change in benefit obligation: | October 2, 2020 | September 27, 2019 | ||||||||||||
Benefit obligation, beginning | $ | 401,207 | $ | 366,426 | ||||||||||
Foreign currency translation | 6,067 | (13,097) | ||||||||||||
Service cost | 2,996 | 6,391 | ||||||||||||
Interest cost | 9,180 | 11,287 | ||||||||||||
Employee contributions | 853 | 2,249 | ||||||||||||
Actuarial loss | 32,769 | 49,707 | ||||||||||||
Benefits paid | (16,739) | (16,681) | ||||||||||||
Settlements and curtailments(1) | 0 | (5,075) | ||||||||||||
Benefit obligation, ending | $ | 436,333 | $ | 401,207 | ||||||||||
Change in plan assets: | ||||||||||||||
Fair value of plan assets, beginning | $ | 425,967 | $ | 409,826 | ||||||||||
Foreign currency translation | 5,980 | (14,360) | ||||||||||||
Employer contributions | 4,152 | 10,520 | ||||||||||||
Employee contributions | 853 | 2,249 | ||||||||||||
Actual return on plan assets | 18,840 | 39,280 | ||||||||||||
Benefits paid | (16,739) | (16,681) | ||||||||||||
Settlements(1) | 0 | (4,867) | ||||||||||||
Fair value of plan assets, end | 439,053 | 425,967 | ||||||||||||
Funded Status at end of year | $ | 2,720 | $ | 24,760 |
(1) | Fiscal 2019 includes the impact of closing |
September 27, 2019 | September 28, 2018 | |||||||
Noncurrent benefit asset (included in Other Assets) | $ | 35,459 | $ | 59,481 | ||||
Noncurrent benefit liability (included in Other Noncurrent Liabilities) | (10,699 | ) | (16,081 | ) | ||||
Net actuarial loss (included in Accumulated other comprehensive loss before taxes) | 77,204 | 48,067 |
October 2, 2020 | September 27, 2019 | |||||||||||||
Noncurrent benefit asset (included in Other Assets) | $ | 16,617 | $ | 35,459 | ||||||||||
Noncurrent benefit liability (included in Other Noncurrent Liabilities) | (13,897) | (10,699) | ||||||||||||
Net actuarial loss (included in Accumulated other comprehensive loss before taxes) | 111,035 | 77,204 |
September 27, 2019 | September 28, 2018 | October 2, 2020 | September 27, 2019 | |||||||||||||||||
Discount rate | 3.3 | % | 3.2 | % | Discount rate | 2.5 | % | 3.3 | % | |||||||||||
Rate of compensation increase | 2.1 | % | 2.0 | % | Rate of compensation increase | 1.9 | % | 2.1 | % | |||||||||||
Long-term rate of return on assets | 5.7 | % | 5.8 | % | Long-term rate of return on assets | 4.3 | % | 5.7 | % |
September 27, 2019 | September 28, 2018 | |||||
Discount rate | 2.5 | % | 3.3 | % | ||
Rate of compensation increase | 2.1 | % | 2.1 | % |
October 2, 2020 | September 27, 2019 | |||||||||||||
Discount rate | 2.4 | % | 2.5 | % | ||||||||||
Rate of compensation increase | 2.0 | % | 2.1 | % |
October 2, 2020 | September 27, 2019 | |||||||||||||
Projected benefit obligation(1) | $ | 153,338 | $ | 10,699 | ||||||||||
Accumulated benefit obligation(1) | 152,729 | 10,506 | ||||||||||||
September 27, 2019 | September 28, 2018 | |||||||
Projected benefit obligation | $ | 10,699 | $ | 16,081 | ||||
Accumulated benefit obligation | 10,506 | 15,935 |
(1) | Increase driven by the UK and AmeriPride U.S. plans switching from asset positions in fiscal 2019 to liability positions in fiscal 2020. |
October 2, 2020 | Quoted prices in active markets Level 1 | Significant other observable inputs Level 2 | Significant unobservable inputs Level 3 | |||||||||||||||||||||||
Cash and cash equivalents and other | $ | 76,072 | $ | 76,072 | $ | — | $ | — | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Investment trusts | 4,717 | 4,717 | — | — | ||||||||||||||||||||||
Investment funds: | ||||||||||||||||||||||||||
Equity funds | 74,852 | — | 74,852 | — | ||||||||||||||||||||||
Fixed income funds | 272,349 | — | 272,349 | — | ||||||||||||||||||||||
Real estate | 11,063 | — | — | 11,063 | ||||||||||||||||||||||
Total | $ | 439,053 | $ | 80,789 | $ | 347,201 | $ | 11,063 | ||||||||||||||||||
September 27, 2019 | Quoted prices in active markets Level 1 | Significant other observable inputs Level 2 | Significant unobservable inputs Level 3 | |||||||||||||||||||||||
Cash and cash equivalents and other | $ | 19,396 | $ | 19,396 | $ | — | $ | — | ||||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||
Investment trusts | 4,677 | $ | 4,677 | — | — | |||||||||||||||||||||
Investment funds: | ||||||||||||||||||||||||||
Equity funds | 72,074 | — | 72,074 | — | ||||||||||||||||||||||
Fixed income funds | 319,395 | — | 319,395 | — | ||||||||||||||||||||||
Real estate | 10,425 | — | — | 10,425 | ||||||||||||||||||||||
Total | $ | 425,967 | $ | 24,073 | $ | 391,469 | $ | 10,425 |
September 27, 2019 | Quoted prices in active markets Level 1 | Significant other observable inputs Level 2 | Significant unobservable inputs Level 3 | |||||||||||||
Cash and cash equivalents and other | $ | 19,396 | $ | 19,396 | $ | — | $ | — | ||||||||
Equity securities: | ||||||||||||||||
Investment trusts | 4,677 | 4,677 | — | — | ||||||||||||
Investment funds: | ||||||||||||||||
Equity funds | 72,074 | — | 72,074 | — | ||||||||||||
Fixed income funds | 319,395 | — | 319,395 | — | ||||||||||||
Real estate | 10,425 | — | — | 10,425 | ||||||||||||
Total | $ | 425,967 | $ | 24,073 | $ | 391,469 | $ | 10,425 | ||||||||
September 28, 2018 | Quoted prices in active markets Level 1 | Significant other observable inputs Level 2 | Significant unobservable inputs Level 3 | |||||||||||||
Cash and cash equivalents and other | $ | 20,568 | $ | 20,568 | $ | — | $ | — | ||||||||
Equity securities: | ||||||||||||||||
Investment trusts | 11,689 | $ | 11,689 | — | — | |||||||||||
Investment funds: | ||||||||||||||||
Equity funds | 220,853 | — | 220,853 | — | ||||||||||||
Fixed income funds | 146,271 | — | 146,271 | — | ||||||||||||
Real estate | 10,445 | — | — | 10,445 | ||||||||||||
Total | $ | 409,826 | $ | 32,257 | $ | 367,124 | $ | 10,445 |
Fiscal 2021(1) | $ | 224,264 | |||
Fiscal 2022 | 7,418 | ||||
Fiscal 2023 | 7,650 | ||||
Fiscal 2024 | 7,799 | ||||
Fiscal 2025 | 8,212 | ||||
Fiscal 2026 – 2030 | 44,006 |
Fiscal 2020 | $ | 13,601 | |
Fiscal 2021 | 14,063 | ||
Fiscal 2022 | 14,448 | ||
Fiscal 2023 | 14,819 | ||
Fiscal 2024 | 15,121 | ||
Fiscal 2025 – 2029 | 81,559 |
(1) | Increase driven by expected payout of certain Canadian plans. |
Pension Fund | EIN/Pension Plan Number | Pension Protection Act Zone Status | FIP/RP Status Pending/ Implemented | Contributions by the Company (in thousands) | Range of Expiration Dates of CBAs | Pension Fund | EIN/Pension Plan Number | Pension Protection Act Zone Status | FIP/RP Status Pending/ Implemented | Contributions by the Company (in thousands) | Range of Expiration Dates of CBAs | |||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2017 | Surcharge Imposed | 2020 | 2019 | 2020 | 2019 | 2018 | Surcharge Imposed | |||||||||||||||||||||||||||||||||
National Retirement Fund | 13-6130178/ 001 | Critical | Implemented | $ | 4,130 | $ | 4,147 | $ | 7,541 | No | 3/1/2019 - 4/1/2022 | National Retirement Fund | 13-6130178/ 001 | Critical | Implemented | $ | 3,574 | $ | 4,130 | $ | 4,147 | No | 3/6/2020 - 10/1/2023 | |||||||||||||||||||||
UNITE HERE Retirement Fund(1) | 82-0994119/ 001 | Critical | Implemented | 4,531 | 3,686 | N/A | No | 6/30/2019 - 6/30/2023 | ||||||||||||||||||||||||||||||||||||
UNITE HERE Retirement Fund | UNITE HERE Retirement Fund | 82-0994119/ 001 | Critical | Implemented | 3,392 | 4,531 | 3,686 | No | 12/15/2019 - 6/30/2023 | |||||||||||||||||||||||||||||||||||
Local 1102 Retirement Trust | 13-1847329/ 001 | Endangered | Implemented | 110 | 1,206 | 397 | No | 10/31/2020 | Local 1102 Retirement Trust | 13-1847329/ 001 | Seriously Endangered | Endangered | Implemented | 66 | 110 | 1,206 | No | 10/31/2020 | ||||||||||||||||||||||||||
Central States SE and SW Areas Pension Plan | 36-6044243/ 001 | Critical and Declining | Implemented | 4,282 | 4,128 | 3,836 | No | 1/31/2007 - 3/31/2023 | Central States SE and SW Areas Pension Plan | 36-6044243/ 001 | Critical and Declining | Implemented | 4,422 | 4,282 | 4,128 | No | 1/31/2007 - 3/31/2023 | |||||||||||||||||||||||||||
Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity | 23-2627428/ 001 | Critical | Implemented | 361 | 319 | 336 | No | 1/31/2023 | Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity | 23-2627428/ 001 | Critical | Implemented | 325 | 361 | 319 | No | 1/31/2023 | |||||||||||||||||||||||||||
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund | 36-6513567/ 001 | Green | N/A | 973 | 907 | 898 | No | 4/26/2019 | ||||||||||||||||||||||||||||||||||||
SEIU National Industry Pension Fund (2) | 52-6148540/ 001 | Critical | Implemented | 623 | 501 | 429 | No | 12/31/2019 - 4/14/2022 | ||||||||||||||||||||||||||||||||||||
SEIU National Industry Pension Fund (1) | SEIU National Industry Pension Fund (1) | 52-6148540/ 001 | Critical | Implemented | 685 | 623 | 501 | No | 4/14/2022 - 12/31/2023 | |||||||||||||||||||||||||||||||||||
LIUNA National Industrial Pension Fund | 52-6074345/ 001 | Critical | Implemented | 678 | 620 | 584 | No | 12/31/2020 | LIUNA National Industrial Pension Fund | 52-6074345/ 001 | Green | Critical | Implemented | 674 | 678 | 620 | No | 12/31/2020 | ||||||||||||||||||||||||||
Other funds | 17,873 | 17,109 | 14,668 | Other funds | 17,073 | 18,846 | 18,016 | |||||||||||||||||||||||||||||||||||||
Total contributions | $ | 33,561 | $ | 32,623 | $ | 28,689 | Total contributions | $ | 30,211 | $ | 33,561 | $ | 32,623 |
(1) | |||||||||||||||||||
Over 75% of the Company's participants in this fund are covered by a single CBA that expires on 12/31/ |
Pension Fund | Contributions to the plan exceeded more than 5% of total contributions (as of the plan's year-end) | |||||||
Local 1102 Retirement Trust | 12/31/2018 and 12/31/2017 | |||||||
12/31/2018 |
Fiscal Year Ended | ||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | ||||||||||
United States | $ | 418,902 | $ | 326,277 | $ | 362,783 | ||||||
Non-U.S. | 137,270 | 145,599 | 157,859 | |||||||||
$ | 556,172 | $ | 471,876 | $ | 520,642 |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
United States | $ | (291,436) | $ | 418,902 | $ | 326,277 | ||||||||||||||
Non-U.S. | (356,283) | 137,270 | 145,599 | |||||||||||||||||
$ | (647,719) | $ | 556,172 | $ | 471,876 |
Fiscal Year Ended | ||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | ||||||||||
Current: | ||||||||||||
Federal | $ | 8,781 | $ | (48,249 | ) | $ | 111,175 | |||||
State and local | 19,966 | 11,356 | 15,455 | |||||||||
Non-U.S. | 38,456 | 44,618 | 57,681 | |||||||||
67,203 | 7,725 | 184,311 | ||||||||||
Deferred: | ||||||||||||
Federal | 35,251 | (113,475 | ) | (21,956 | ) | |||||||
State and local | 7,683 | 7,408 | 3,165 | |||||||||
Non-U.S. | (2,431 | ) | 1,778 | (19,065 | ) | |||||||
40,503 | (104,289 | ) | (37,856 | ) | ||||||||
$ | 107,706 | $ | (96,564 | ) | $ | 146,455 |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | (69,399) | $ | 8,781 | $ | (48,249) | ||||||||||||||
State and local | (4,616) | 19,966 | 11,356 | |||||||||||||||||
Non-U.S. | 21,779 | 38,456 | 44,618 | |||||||||||||||||
(52,236) | 67,203 | 7,725 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||
Federal | (79,054) | 35,251 | (113,475) | |||||||||||||||||
State and local | (19,627) | 7,683 | 7,408 | |||||||||||||||||
Non-U.S. | (35,367) | (2,431) | 1,778 | |||||||||||||||||
(134,048) | 40,503 | (104,289) | ||||||||||||||||||
$ | (186,284) | $ | 107,706 | $ | (96,564) |
Fiscal Year Ended | |||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||
United States statutory income tax rate | 21.0 | % | 24.5 | % | 35.0 | % | |||
Increase (decrease) in taxes, resulting from: | |||||||||
State income taxes, net of Federal tax benefit | 4.2 | 3.2 | 2.3 | ||||||
Foreign taxes(1) | 2.2 | 3.3 | (4.3 | ) | |||||
Permanent book/tax differences | 0.4 | (1.2 | ) | (3.8 | ) | ||||
Uncertain tax positions | — | (0.3 | ) | 1.4 | |||||
U.S. Tax Reform - Remeasurement of deferred taxes | — | (49.3 | ) | — | |||||
U.S. Tax Reform - Foreign tax credit valuation allowance | (2.3 | ) | 2.8 | — | |||||
Sale of Healthcare Technologies | (4.4 | ) | — | — | |||||
Tax credits & other | (1.7 | ) | (3.5 | ) | (2.5 | ) | |||
Effective income tax rate | 19.4 | % | (20.5 | )% | 28.1 | % |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
United States statutory income tax rate | 21.0 | % | 21.0 | % | 24.5 | % | ||||||||||||||
Increase (decrease) in taxes, resulting from: | ||||||||||||||||||||
State income taxes, net of Federal tax benefit | 3.0 | 4.2 | 3.2 | |||||||||||||||||
Foreign taxes(1) | (3.9) | 2.2 | 3.3 | |||||||||||||||||
Foreign goodwill impairment | (5.0) | 0 | 0 | |||||||||||||||||
Permanent book/tax differences | (0.7) | 0.6 | (1.2) | |||||||||||||||||
Uncertain tax positions | 0.1 | 0 | (0.3) | |||||||||||||||||
U.S. Tax Reform - Remeasurement of deferred taxes | 0 | 0 | (49.3) | |||||||||||||||||
U.S. Tax Reform - Foreign tax credit valuation allowance | 0 | (2.3) | 2.8 | |||||||||||||||||
Stock compensation | 3.6 | (0.2) | 0 | |||||||||||||||||
CARES Act - Carryback rate differential | 9.8 | 0 | 0 | |||||||||||||||||
Sale of HCT | 0 | (4.4) | 0 | |||||||||||||||||
Tax credits & other | 0.9 | (1.7) | (3.5) | |||||||||||||||||
Effective income tax rate | 28.8 | % | 19.4 | % | (20.5) | % | ||||||||||||||
(1) | Includes differences between the United States statutory tax rate and tax rates in foreign jurisdictions, foreign withholding taxes and taxation of foreign earnings, which includes the transition tax on deemed repatriated earnings of foreign subsidiaries and the tax on "Global Intangible Low-Taxed Income" ("GILTI"), as well as valuation allowances in foreign countries in fiscal 2020 (3.4%). |
October 2, 2020 | September 27, 2019 | |||||||||||||
Deferred tax liabilities: | ||||||||||||||
Property and equipment | $ | 183,789 | $ | 137,293 | ||||||||||
Investments | 13,300 | 11,902 | ||||||||||||
Other intangible assets, including goodwill | 500,447 | 462,637 | ||||||||||||
Cost to fulfill - Rental merchandise in-service | 52,334 | 83,483 | ||||||||||||
Operating Lease Right-of-use Assets | 89,464 | 0 | ||||||||||||
Other | 45,589 | 37,309 | ||||||||||||
Gross deferred tax liability | 884,923 | 732,624 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Derivatives | 30,625 | 11,949 | ||||||||||||
Insurance | 23,784 | 34,112 | ||||||||||||
Employee compensation and benefits | 128,771 | 113,269 | ||||||||||||
Accruals and allowances | 31,218 | 31,844 | ||||||||||||
Operating lease liabilities | 102,259 | 0 | ||||||||||||
NOL/credit carryforwards and other | 261,763 | 56,508 | ||||||||||||
Gross deferred tax asset, before valuation allowances | 578,420 | 247,682 | ||||||||||||
Valuation allowances | (38,977) | (17,532) | ||||||||||||
Net deferred tax liability | $ | 345,480 | $ | 502,474 |
September 27, 2019 | September 28, 2018 | |||||||
Deferred tax liabilities: | ||||||||
Property and equipment | $ | 137,293 | $ | 126,345 | ||||
Investments | 11,902 | 12,213 | ||||||
Other intangible assets, including goodwill | 462,637 | 474,263 | ||||||
Cost to fulfill - Rental merchandise in-service | 83,483 | 63,835 | ||||||
Derivatives | — | 21,599 | ||||||
Other | 37,309 | 17,450 | ||||||
Gross deferred tax liability | 732,624 | 715,705 | ||||||
Deferred tax assets: | ||||||||
Derivatives | 11,949 | — | ||||||
Insurance | 34,112 | 40,240 | ||||||
Employee compensation and benefits | 113,269 | 136,603 | ||||||
Accruals and allowances | 31,844 | 19,338 | ||||||
Net operating loss/credit carryforwards and other | 56,508 | 60,576 | ||||||
Gross deferred tax asset, before valuation allowances | 247,682 | 256,757 | ||||||
Valuation allowances | (17,532 | ) | (29,023 | ) | ||||
Net deferred tax liability | $ | 502,474 | $ | 487,971 |
October 2, 2020 | September 27, 2019 | |||||||||||||
Balance, beginning of year | $ | (17,532) | $ | (29,023) | ||||||||||
Additions(1) | (21,445) | (2,330) | ||||||||||||
Subtractions(2) | 0 | 13,821 | ||||||||||||
Balance, end of year | $ | (38,977) | $ | (17,532) |
September 27, 2019 | September 28, 2018 | |||||||
Balance, beginning of year | $ | (29,023 | ) | $ | (11,513 | ) | ||
Additions(1) | (2,330 | ) | (21,101 | ) | ||||
Subtractions(2) | 13,821 | 3,591 | ||||||
Balance, end of year | $ | (17,532 | ) | $ | (29,023 | ) |
(1) | The additions in both fiscal 2020 and fiscal 2019 were mainly driven by losses in certain foreign subsidiaries. | ||||
(2) | Valuation allowances against FTC carryforwards were released during fiscal 2019 as a result of Treasury Regulations. |
September 27, 2019 | September 28, 2018 | ||||||
Balance, beginning of year | $ | 29,089 | $ | 30,812 | |||
Additions based on tax positions taken in the current year | 3,713 | 709 | |||||
Additions for tax positions taken in prior years | 6,531 | 1,505 | |||||
Reductions for remeasurements, settlements and payments | (1,484 | ) | (2,368 | ) | |||
Reductions due to statute expiration | (1,577 | ) | (1,569 | ) | |||
Balance, end of year | $ | 36,272 | $ | 29,089 |
October 2, 2020 | September 27, 2019 | ||||||||||
Balance, beginning of year | $ | 36,272 | $ | 29,089 | |||||||
Additions based on tax positions taken in the current year | 1,257 | 3,713 | |||||||||
Additions for tax positions taken in prior years | 0 | 6,531 | |||||||||
Reductions for remeasurements, settlements and payments | (392) | (1,484) | |||||||||
Reductions due to statute expiration | (2,559) | (1,577) | |||||||||
Balance, end of year | $ | 34,578 | $ | 36,272 |
September 27, 2019 | September 28, 2018 | September 29, 2017 | ||||||||||
Dividend payments | $ | 108.4 | $ | 103.1 | $ | 100.8 |
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
Dividend payments | $ | 110.9 | $ | 108.4 | $ | 103.1 |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
TBOs | $ | 10.8 | $ | 14.7 | $ | 18.5 | ||||||||||||||
TBO-Rs | 0.3 | 0 | 0 | |||||||||||||||||
RSUs | 35.1 | 28.9 | 24.1 | |||||||||||||||||
PSUs (1) | (17.8) | 9.9 | 43.7 | |||||||||||||||||
Deferred Stock Units | 1.9 | 1.8 | 2.0 | |||||||||||||||||
$ | 30.3 | $ | 55.3 | $ | 88.3 | |||||||||||||||
Taxes related to share-based compensation | $ | 7.2 | $ | 13.7 | $ | 24.1 | ||||||||||||||
Cash Received from Option Exercises | 90.0 | 39.1 | 21.5 | |||||||||||||||||
Tax Benefit on Share Deliveries (2) | 46.2 | 4.8 | 7.4 |
Fiscal Year Ended | ||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | ||||||||||
TBOs | $ | 14.7 | $ | 18.5 | $ | 20.4 | ||||||
RSUs | 28.9 | 24.1 | 20.8 | |||||||||
PSUs (1) | 9.9 | 43.7 | 21.6 | |||||||||
Deferred Stock Units | 1.8 | 2.0 | 2.4 | |||||||||
$ | 55.3 | $ | 88.3 | $ | 65.2 | |||||||
Taxes related to share-based compensation | $ | 13.7 | $ | 24.1 | $ | 24.2 | ||||||
Cash Received from Option Exercises | 39.1 | 21.5 | 28.8 | |||||||||
Tax Benefit on Share Deliveries (2) | 4.8 | 7.4 | 23.3 |
(1) | Share-based compensation expense was reduced during fiscal 2020 based on lower than estimated target attainment on plan metrics on each of the fiscal 2018, fiscal 2019 and fiscal 2020 PSU grants, resulting in the reversal of previously recognized share-based compensation expense of $29.8 million. Share-based compensation expense was reduced during fiscal 2019 based on lower than estimated target attainment on plan metrics for the fiscal 2018 PSU grants, resulting in the reversal of previously recognized share-based compensation expense of $6.6 million. The Company also reversed previously recognized share-based compensation expense based on the actual target for the 2017 PSU grants achieved as of the end of fiscal 2019 of $5.2 million. During fiscal 2018, the Company increased the estimated target attainment on plan metrics for both the fiscal 2016 and fiscal 2017 PSU grants, resulting in an additional $18.9 million of share-based compensation expense. | ||||
(2) | The tax benefit on option exercises and restricted stock unit deliveries is included in |
Unrecognized Compensation Expense (in millions) | Weighted-Average Period (Years) | |||||
TBOs | $ | 15.7 | 2.25 | |||
RSUs | 54.5 | 2.34 | ||||
PSUs | 15.9 | 1.54 | ||||
Total | $ | 86.1 |
Unrecognized Compensation Expense (in millions) | Weighted-Average Period (Years) | |||||||||||||
TBOs | $ | 38.2 | 2.72 | |||||||||||
TBO-Rs | 22.2 | 4.49 | ||||||||||||
RSUs | 114.9 | 2.61 | ||||||||||||
PSUs | 0 | 1.90 | ||||||||||||
Total | $ | 175.3 |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
Expected volatility | 30% | 20% | 20% | |||||||||||||||||
Expected dividend yield | 1.01% - 2.09% | 1.17% - 1.44% | 1.03% - 1.11% | |||||||||||||||||
Expected life (in years) | 6.22 | 6.25 | 6.25 | |||||||||||||||||
Risk-free interest rate | 0.40% - 1.74% | 1.62% - 3.02% | 2.25% - 2.94% | |||||||||||||||||
Weighted-average grant-date fair value | $9.07 | $8.23 | $8.75 |
Fiscal Year Ended | ||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | ||||
Expected volatility | 20% | 20% | 25% | |||
Expected dividend yield | 1.17% - 1.44% | 1.03% - 1.11% | 1.11% - 1.21% | |||
Expected life (in years) | 6.25 | 6.25 | 6.25 | |||
Risk-free interest rate | 1.62% - 3.02% | 2.25% - 2.94% | 2.14% - 2.20% | |||
Weighted-average grant-date fair value | $8.23 | $8.75 | $8.47 |
Options | Shares (000s) | Weighted-Average Exercise Price | Aggregate Intrinsic Value ($000s) | Weighted-Average Remaining Term (Years) | |||||||||
Outstanding at September 28, 2018 | 13,302 | $ | 26.60 | ||||||||||
Granted | 1,955 | $ | 36.42 | ||||||||||
Exercised | (1,973 | ) | $ | 21.90 | |||||||||
Forfeited and expired | (928 | ) | $ | 35.72 | |||||||||
Outstanding at September 27, 2019 | 12,356 | $ | 28.22 | $ | 182,889 | 5.7 | |||||||
Exercisable at September 27, 2019 | 8,150 | $ | 23.82 | $ | 156,493 | 4.4 | |||||||
Expected to vest at September 27, 2019 | 3,980 | $ | 36.72 | $ | 25,066 | 8.2 |
Options | Shares (000s) | Weighted-Average Exercise Price | Aggregate Intrinsic Value ($000s) | Weighted-Average Remaining Term (Years) | ||||||||||||||||||||||
Outstanding at September 27, 2019 | 12,356 | $ | 28.22 | |||||||||||||||||||||||
Granted | 4,327 | $ | 33.61 | |||||||||||||||||||||||
Exercised | (5,390) | $ | 21.72 | |||||||||||||||||||||||
Forfeited and expired | (2,574) | $ | 36.55 | |||||||||||||||||||||||
Outstanding at October 2, 2020 | 8,719 | $ | 32.45 | $ | 9,803 | 7.3 | ||||||||||||||||||||
Exercisable at October 2, 2020 | 3,213 | $ | 29.49 | $ | 9,219 | 4.3 | ||||||||||||||||||||
Expected to vest at October 2, 2020 | 4,839 | $ | 34.33 | $ | 481 | 8.9 |
Fiscal Year Ended | Fiscal Year Ended | |||||||||||||||||||||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||||||||||||||
Total intrinsic value exercised (in millions) | $ | 26.8 | $ | 16.6 | $ | 32.2 | Total intrinsic value exercised (in millions) | $ | 114.6 | $ | 26.8 | $ | 16.6 | |||||||||||||||||||
Total fair value that vested (in millions) | 16.3 | 17.3 | 17.7 | Total fair value that vested (in millions) | 9.9 | 16.3 | 17.3 |
Fiscal Year Ended | |||||
October 2, 2020 | |||||
Expected volatility | 37.82% | ||||
Expected dividend yield | 1.55% | ||||
Expected life (in years) | 7.00 | ||||
Risk-free interest rate | 0.50% | ||||
Weighted-average grant-date fair value | $3.93 |
Options | Shares (000s) | Weighted-Average Exercise Price | Aggregate Intrinsic Value ($000s) | Weighted-Average Remaining Term (Years) | ||||||||||||||||||||||
Outstanding at September 27, 2019 | 0 | $ | 0 | |||||||||||||||||||||||
Granted | 5,732 | $ | 66.15 | |||||||||||||||||||||||
Exercised | 0 | $ | 0 | |||||||||||||||||||||||
Forfeited and expired | 0 | $ | 0 | |||||||||||||||||||||||
Outstanding at October 2, 2020 | 5,732 | $ | 66.15 | $ | 0 | 9.9 | ||||||||||||||||||||
Expected to vest at October 2, 2020 | 4,275 | $ | 66.15 | $ | 0 | 9.9 |
Options | Shares (000s) | Weighted-Average Exercise Price | Aggregate Intrinsic Value ($000s) | Weighted-Average Remaining Term (Years) | |||||||||
Outstanding at September 28, 2018 | 1,875 | $ | 12.46 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (364 | ) | $ | 11.17 | |||||||||
Forfeited and expired | — | $ | — | ||||||||||
Outstanding at September 27, 2019 | 1,511 | $ | 12.77 | $ | 45,696 | 2.2 | |||||||
Exercisable at September 27, 2019 | 1,511 | $ | 12.77 | $ | 45,696 | 2.2 |
Options | Shares (000s) | Weighted-Average Exercise Price | Aggregate Intrinsic Value ($000s) | Weighted-Average Remaining Term (Years) | ||||||||||||||||||||||
Outstanding at September 27, 2019 | 1,511 | $ | 12.77 | |||||||||||||||||||||||
Granted | 0 | $ | 0 | |||||||||||||||||||||||
Exercised | (1,205) | $ | 12.97 | |||||||||||||||||||||||
Forfeited and expired | 0 | $ | 0 | |||||||||||||||||||||||
Outstanding at October 2, 2020 | 306 | $ | 11.99 | $ | 4,765 | 0.9 | ||||||||||||||||||||
Exercisable at October 2, 2020 | 306 | $ | 11.99 | $ | 4,765 | 0.9 |
Restricted Stock Units | Units (000s) | Weighted Average Grant Date Fair Value | |||||
Outstanding at September 28, 2018 | 2,408 | $ | 36.66 | ||||
Granted | 1,204 | $ | 36.53 | ||||
Vested | (630) | $ | 35.49 | ||||
Forfeited | (333) | $ | 36.99 | ||||
Outstanding at September 27, 2019 | 2,649 | $ | 36.89 |
Restricted Stock Units | Units (000s) | Weighted Average Grant Date Fair Value | ||||||||||||
Outstanding at September 27, 2019 | 2,649 | $ | 36.89 | |||||||||||
Granted | 3,355 | $ | 32.80 | |||||||||||
Vested | (925) | $ | 35.79 | |||||||||||
Forfeited | (453) | $ | 38.67 | |||||||||||
Outstanding at October 2, 2020 | 4,626 | $ | 34.08 |
Performance Stock Units | Units (000s) | Weighted Average Grant Date Fair Value | |||||
Outstanding at September 28, 2018 | 1,614 | $ | 34.99 | ||||
Granted(3) | 1,299 | $ | 36.44 | ||||
Vested | (1,051) | $ | 32.65 | ||||
Forfeited | (241) | $ | 36.66 | ||||
Outstanding at September 27, 2019 | 1,621 | $ | 36.20 |
Performance Stock Units | Units (000s) | Weighted Average Grant Date Fair Value | ||||||||||||
Outstanding at September 27, 2019 | 1,621 | $ | 36.20 | |||||||||||
Granted(1) | 642 | $ | 42.99 | |||||||||||
Vested | (590) | $ | 34.13 | |||||||||||
Forfeited | (358) | $ | 36.65 | |||||||||||
Outstanding at October 2, 2020 | 1,315 | $ | 37.61 |
Includes approximately |
Fiscal Year Ended | ||||||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||
(Loss) Earnings: | ||||||||||||||||||||
Net (loss) income attributable to Aramark stockholders | $ | (461,529) | $ | 448,549 | $ | 567,885 | ||||||||||||||
Shares: | ||||||||||||||||||||
Basic weighted-average shares outstanding | 251,828 | 246,854 | 245,771 | |||||||||||||||||
Effect of dilutive securities(1) | 0 | 5,156 | 7,581 | |||||||||||||||||
Diluted weighted-average shares outstanding | 251,828 | 252,010 | 253,352 | |||||||||||||||||
Basic (Loss) Earnings Per Share: | ||||||||||||||||||||
Net (loss) income attributable to Aramark stockholders | $ | (1.83) | $ | 1.82 | $ | 2.31 | ||||||||||||||
Diluted (Loss) Earnings Per Share: | ||||||||||||||||||||
Net (loss) income attributable to Aramark stockholders | $ | (1.83) | $ | 1.78 | $ | 2.24 |
Fiscal Year Ended | ||||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | ||||||||||
Earnings: | ||||||||||||
Net income attributable to Aramark stockholders | $ | 448,549 | $ | 567,885 | $ | 373,923 | ||||||
Shares: | ||||||||||||
Basic weighted-average shares outstanding | 246,854 | 245,771 | 244,453 | |||||||||
Effect of dilutive securities | 5,156 | 7,581 | 7,104 | |||||||||
Diluted weighted-average shares outstanding | 252,010 | 253,352 | 251,557 | |||||||||
Basic Earnings Per Share: | ||||||||||||
Net income attributable to Aramark stockholders | $ | 1.82 | $ | 2.31 | $ | 1.53 | ||||||
Diluted Earnings Per Share: | ||||||||||||
Net income attributable to Aramark stockholders | $ | 1.78 | $ | 2.24 | $ | 1.49 |
(1) | Incremental shares of 2.3 million have been excluded from the computation of diluted weighted-average shares outstanding for the fiscal year ended October 2, 2020 because the effect would have been antidilutive due to the net loss attributable to Aramark stockholders during the period. |
2020 | $ | 101,061 | |
2021 | 74,908 | ||
2022 | 56,765 | ||
2023 | 43,795 | ||
2024 | 36,215 | ||
2025-Thereafter | 214,818 | ||
Total minimum rental obligations | $ | 527,562 |
Quarter Ended | ||||||||||||||||||||||||||
December 27, 2019 | March 27, 2020 | June 26, 2020 | October 2, 2020 | |||||||||||||||||||||||
Revenue(1) | $ | 4,253,597 | $ | 3,731,559 | $ | 2,152,253 | $ | 2,692,150 | ||||||||||||||||||
Cost of services provided(1) | 3,768,113 | 3,407,589 | 2,265,614 | 2,552,351 | ||||||||||||||||||||||
Net income (loss)(1) | 145,883 | (202,021) | (256,308) | (148,989) | ||||||||||||||||||||||
Net income (loss) attributable to Aramark stockholders(1) | 145,761 | (202,260) | (256,440) | (148,590) | ||||||||||||||||||||||
Earnings (Loss) per share: | ||||||||||||||||||||||||||
Basic | $ | 0.59 | $ | (0.80) | $ | (1.01) | $ | (0.59) | ||||||||||||||||||
Diluted | 0.57 | (0.80) | (1.01) | (0.59) | ||||||||||||||||||||||
Dividends declared per common share | 0.110 | 0.110 | 0.110 | 0.110 | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||
December 28, 2018 | March 29, 2019 | June 28, 2019 | September 27, 2019 | |||||||||||||||||||||||
Revenue | $ | 4,265,349 | $ | 3,999,987 | $ | 4,010,761 | $ | 3,951,244 | ||||||||||||||||||
Cost of services provided | 3,794,445 | 3,639,959 | 3,594,978 | 3,503,280 | ||||||||||||||||||||||
Net income(2) | 250,676 | 29,310 | 83,064 | 85,414 | ||||||||||||||||||||||
Net income attributable to Aramark stockholders(2) | 250,682 | 29,353 | 82,955 | 85,557 | ||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||
Basic | $ | 1.02 | $ | 0.12 | $ | 0.34 | $ | 0.35 | ||||||||||||||||||
Diluted | 0.99 | 0.12 | 0.33 | 0.34 | ||||||||||||||||||||||
Dividends declared per common share | 0.110 | 0.110 | 0.110 | 0.110 |
Quarter Ended | ||||||||||||||||
December 28, 2018 | March 29, 2019 | June 28, 2019 | September 27, 2019 | |||||||||||||
Revenue | $ | 4,265,349 | $ | 3,999,987 | $ | 4,010,761 | $ | 3,951,244 | ||||||||
Cost of services provided | 3,794,445 | 3,639,959 | 3,594,978 | 3,503,280 | ||||||||||||
Net income(1) | 250,676 | 29,310 | 83,064 | 85,414 | ||||||||||||
Net income attributable to Aramark stockholders(1) | 250,682 | 29,353 | 82,955 | 85,557 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.02 | $ | 0.12 | $ | 0.34 | $ | 0.35 | ||||||||
Diluted | 0.99 | 0.12 | 0.33 | 0.34 | ||||||||||||
Dividends declared per common share | 0.110 | 0.110 | 0.110 | 0.110 | ||||||||||||
Quarter Ended | ||||||||||||||||
December 29, 2017 | March 30, 2018 | June 29, 2018 | September 28, 2018 | |||||||||||||
Revenue | $ | 3,965,118 | $ | 3,939,311 | $ | 3,971,606 | $ | 3,913,598 | ||||||||
Cost of services provided(2) | 3,522,230 | 3,563,009 | 3,526,293 | 3,386,380 | ||||||||||||
Net income(3) | 292,440 | 27,716 | 72,716 | 175,568 | ||||||||||||
Net income attributable to Aramark stockholders(3) | 292,284 | 27,569 | 72,577 | 175,455 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.19 | $ | 0.11 | $ | 0.29 | $ | 0.71 | ||||||||
Diluted | 1.16 | 0.11 | 0.29 | 0.69 | ||||||||||||
Dividends declared per common share | 0.105 | 0.105 | 0.105 | 0.105 |
(1) | Fiscal 2020 results were negatively impacted by COVID-19. | ||||
(2) | Fiscal 2019 net income was impacted by the sale of HCT in the first quarter of fiscal 2019 (see Note 2). | ||||
Revenue(1) | |||||||||||
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||
FSS United States | $ | 9,898.6 | $ | 10,137.8 | $ | 9,748.0 | |||||
FSS International | 3,742.9 | 3,655.8 | 3,291.7 | ||||||||
Uniform | 2,585.8 | 1,996.0 | 1,564.7 | ||||||||
$ | 16,227.3 | $ | 15,789.6 | $ | 14,604.4 |
Operating Income(1)(2)(3) | |||||||||||
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||
FSS United States | $ | 716.8 | $ | 682.7 | $ | 596.6 | |||||
FSS International | 142.7 | 142.2 | 155.8 | ||||||||
Uniform | 191.3 | 181.4 | 182.3 | ||||||||
1,050.8 | 1,006.3 | 934.7 | |||||||||
Corporate | (159.6 | ) | (187.9 | ) | (133.1 | ) | |||||
Operating Income | 891.2 | 818.4 | 801.6 | ||||||||
Interest and Other Financing Costs, net | (335.0 | ) | (346.6 | ) | (280.9 | ) | |||||
Income Before Income Taxes | $ | 556.2 | $ | 471.8 | $ | 520.7 |
Depreciation and Amortization(1) | |||||||||||
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||
FSS United States | $ | 381.6 | $ | 405.0 | $ | 372.7 | |||||
FSS International | 69.4 | 64.8 | 55.3 | ||||||||
Uniform | 138.7 | 123.4 | 77.2 | ||||||||
Corporate | 2.9 | 3.0 | 3.0 | ||||||||
$ | 592.6 | $ | 596.2 | $ | 508.2 |
Revenue (1)(2) | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
FSS United States | $ | 7,366.7 | $ | 9,898.6 | $ | 10,137.8 | |||||||||||
FSS International | 2,945.8 | 3,742.9 | 3,655.8 | ||||||||||||||
Uniform | 2,517.1 | 2,585.8 | 1,996.0 | ||||||||||||||
$ | 12,829.6 | $ | 16,227.3 | $ | 15,789.6 |
Operating Income (Loss) (1)(2) | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
FSS United States | $ | 5.3 | $ | 716.8 | $ | 682.7 | |||||||||||
FSS International | (344.2) | 142.7 | 142.2 | ||||||||||||||
Uniform | 171.5 | 191.3 | 181.4 | ||||||||||||||
(167.4) | 1,050.8 | 1,006.3 | |||||||||||||||
Corporate | (97.5) | (159.6) | (187.9) | ||||||||||||||
Operating (Loss) Income | (264.9) | 891.2 | 818.4 | ||||||||||||||
Interest and Other Financing Costs, net | (382.8) | (335.0) | (346.6) | ||||||||||||||
(Loss) Income Before Income Taxes | $ | (647.7) | $ | 556.2 | $ | 471.8 |
Depreciation and Amortization(2) | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018 | |||||||||||||||
FSS United States | $ | 379.2 | $ | 381.6 | $ | 405.0 | |||||||||||
FSS International | 76.2 | 69.4 | 64.8 | ||||||||||||||
Uniform | 137.2 | 138.7 | 123.4 | ||||||||||||||
Corporate | 2.6 | 2.9 | 3.0 | ||||||||||||||
$ | 595.2 | $ | 592.6 | $ | 596.2 |
Capital Expenditures and Other(1)(2) | |||||||||||||||||
Fiscal Year Ended | |||||||||||||||||
October 2, 2020 | September 27, 2019 | September 28, 2018* | |||||||||||||||
FSS United States | $ | 310.0 | $ | 375.9 | $ | 494.3 | |||||||||||
FSS International | 48.9 | 69.4 | 84.1 | ||||||||||||||
Uniform | 58.8 | 61.0 | 332.5 | ||||||||||||||
Corporate | 2.1 | 0.1 | 1.2 | ||||||||||||||
$ | 419.8 | $ | 506.4 | $ | 912.1 | ||||||||||||
* Includes amounts acquired in business combinations. |
Identifiable Assets(1)(2) | |||||||||||
October 2, 2020** | September 27, 2019 | ||||||||||
FSS United States | $ | 8,171.6 | $ | 8,368.1 | |||||||
FSS International | 1,963.2 | 2,039.2 | |||||||||
Uniform | 3,159.9 | 3,118.7 | |||||||||
Corporate*** | 2,418.0 | 210.3 | |||||||||
$ | 15,712.7 | $ | 13,736.3 | ||||||||
** Includes capitalization of Operating Lease Right-of-use Assets. | |||||||||||
*** Fiscal 2020 includes cash on hand from borrowings. |
Capital Expenditures and Other(1) | |||||||||||
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018* | September 29, 2017 | |||||||||
FSS United States | $ | 375.9 | $ | 494.3 | $ | 420.4 | |||||
FSS International | 69.4 | 84.1 | 66.1 | ||||||||
Uniform | 61.0 | 332.5 | 67.5 | ||||||||
Corporate | 0.1 | 1.2 | 1.0 | ||||||||
$ | 506.4 | $ | 912.1 | $ | 555.0 | ||||||
* Includes amounts acquired in business combinations |
Identifiable Assets(1) | |||||||
September 27, 2019 | September 28, 2018 | ||||||
FSS United States | $ | 8,368.1 | $ | 8,482.8 | |||
FSS International | 2,039.2 | 2,072.0 | |||||
Uniform | 3,118.7 | 2,991.7 | |||||
Corporate | 210.3 | 173.6 | |||||
$ | 13,736.3 | $ | 13,720.1 |
Revenue(1) | |||||||||||
Fiscal Year Ended | |||||||||||
September 27, 2019 | September 28, 2018 | September 29, 2017 | |||||||||
United States | $ | 12,070.0 | $ | 11,795.6 | $ | 11,098.0 | |||||
Foreign | 4,157.3 | 3,994.0 | 3,506.4 | ||||||||
$ | 16,227.3 | $ | 15,789.6 | $ | 14,604.4 |
Revenue(1)(2) | ||||||||||||||||||||||||
Property and Equipment, net(1) | Fiscal Year Ended | |||||||||||||||||||||||
September 27, 2019 | September 28, 2018 | October 2, 2020 | September 27, 2019 | September 28, 2018 | ||||||||||||||||||||
United States | $ | 1,854.7 | $ | 1,065.9 | United States | $ | 9,560.9 | $ | 12,070.0 | $ | 11,795.6 | |||||||||||||
Foreign | 327.1 | 312.2 | Foreign | 3,268.7 | 4,157.3 | 3,994.0 | ||||||||||||||||||
$ | 2,181.8 | $ | 1,378.1 | $ | 12,829.6 | $ | 16,227.3 | $ | 15,789.6 |
Property and Equipment, net(1) | |||||||||||
October 2, 2020 | September 27, 2019 | ||||||||||
United States | $ | 1,759.2 | $ | 1,854.7 | |||||||
Foreign | 291.7 | 327.1 | |||||||||
$ | 2,050.9 | $ | 2,181.8 |
(1) | Revenue, operating income (loss), capital expenditures and other and identifiable assets for all segments in fiscal 2020 were negatively impacted by COVID-19. | ||||
(2) | The adoption of the new ASU related to revenue recognition in fiscal 2019 impacted each of the financial information categories | ||||
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 33,510 | $ | 40,544 | $ | 172,584 | $ | — | $ | 246,643 | |||||||||||
Receivables | — | 1,966 | 522,627 | 1,282,371 | — | 1,806,964 | |||||||||||||||||
Inventories | — | 15,804 | 301,091 | 94,424 | — | 411,319 | |||||||||||||||||
Prepayments and other current assets | — | 27,164 | 82,666 | 83,631 | — | 193,461 | |||||||||||||||||
Total current assets | 5 | 78,444 | 946,928 | 1,633,010 | — | 2,658,387 | |||||||||||||||||
Property and Equipment, net | — | 43,329 | 1,784,410 | 354,023 | — | 2,181,762 | |||||||||||||||||
Goodwill | — | 173,104 | 4,694,549 | 651,147 | — | 5,518,800 | |||||||||||||||||
Investment in and Advances to Subsidiaries | 3,320,042 | 6,649,119 | — | 717,228 | (10,686,389 | ) | — | ||||||||||||||||
Other Intangible Assets | — | 29,684 | 1,819,315 | 184,567 | — | 2,033,566 | |||||||||||||||||
Other Assets | — | 20,382 | 979,350 | 346,076 | (2,002 | ) | 1,343,806 | ||||||||||||||||
$ | 3,320,047 | $ | 6,994,062 | $ | 10,224,552 | $ | 3,886,051 | $ | (10,688,391 | ) | $ | 13,736,321 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Current maturities of long-term borrowings | $ | — | $ | 6,256 | $ | 27,924 | $ | 35,748 | $ | — | $ | 69,928 | |||||||||||
Accounts payable | — | 127,640 | 507,903 | 363,974 | — | 999,517 | |||||||||||||||||
Accrued expenses and other current liabilities | — | 241,523 | 1,030,074 | 364,168 | 88 | 1,635,853 | |||||||||||||||||
Total current liabilities | — | 375,419 | 1,565,901 | 763,890 | 88 | 2,705,298 | |||||||||||||||||
Long-term Borrowings | — | 6,090,487 | 82,394 | 439,358 | — | 6,612,239 | |||||||||||||||||
Deferred Income Taxes and Other Noncurrent Liabilities | — | 380,453 | 569,409 | 138,960 | — | 1,088,822 | |||||||||||||||||
Intercompany Payable | — | — | 4,187,591 | 726,464 | (4,914,055 | ) | — | ||||||||||||||||
Redeemable Noncontrolling Interest | — | — | 9,915 | — | — | 9,915 | |||||||||||||||||
Total Stockholders' Equity | 3,320,047 | 147,703 | 3,809,342 | 1,817,379 | (5,774,424 | ) | 3,320,047 | ||||||||||||||||
$ | 3,320,047 | $ | 6,994,062 | $ | 10,224,552 | $ | 3,886,051 | $ | (10,688,391 | ) | $ | 13,736,321 |
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 50,716 | $ | 29,844 | $ | 134,460 | $ | — | $ | 215,025 | |||||||||||
Receivables | — | 1,038 | 443,599 | 1,345,796 | — | 1,790,433 | |||||||||||||||||
Inventories | — | 15,857 | 592,259 | 116,686 | — | 724,802 | |||||||||||||||||
Prepayments and other current assets | — | 21,411 | 86,100 | 63,654 | — | 171,165 | |||||||||||||||||
Total current assets | 5 | 89,022 | 1,151,802 | 1,660,596 | — | 2,901,425 | |||||||||||||||||
Property and Equipment, net | — | 28,341 | 1,013,523 | 336,230 | — | 1,378,094 | |||||||||||||||||
Goodwill | — | 173,104 | 4,783,547 | 653,917 | — | 5,610,568 | |||||||||||||||||
Investment in and Advances to Subsidiaries | 3,029,553 | 7,441,605 | 90,049 | 844,245 | (11,405,452 | ) | — | ||||||||||||||||
Other Intangible Assets | — | 29,684 | 1,919,795 | 187,365 | — | 2,136,844 | |||||||||||||||||
Other Assets | — | 100,754 | 1,264,976 | 329,443 | (2,002 | ) | 1,693,171 | ||||||||||||||||
$ | 3,029,558 | $ | 7,862,510 | $ | 10,223,692 | $ | 4,011,796 | $ | (11,407,454 | ) | $ | 13,720,102 | |||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Current maturities of long-term borrowings | $ | — | $ | — | $ | 26,564 | $ | 4,343 | $ | — | $ | 30,907 | |||||||||||
Accounts payable | — | 128,460 | 483,606 | 406,854 | — | 1,018,920 | |||||||||||||||||
Accrued expenses and other current liabilities | — | 205,807 | 926,794 | 307,643 | 88 | 1,440,332 | |||||||||||||||||
Total current liabilities | — | 334,267 | 1,436,964 | 718,840 | 88 | 2,490,159 | |||||||||||||||||
Long-term Borrowings | — | 6,651,110 | 82,097 | 479,870 | — | 7,213,077 | |||||||||||||||||
Deferred Income Taxes and Other Noncurrent Liabilities | — | 432,583 | 466,331 | 78,301 | — | 977,215 | |||||||||||||||||
Intercompany Payable | — | — | 4,827,084 | 955,407 | (5,782,491 | ) | — | ||||||||||||||||
Redeemable Noncontrolling Interest | — | — | 10,093 | — | — | 10,093 | |||||||||||||||||
Total Stockholders' Equity | 3,029,558 | 444,550 | 3,401,123 | 1,779,378 | (5,625,051 | ) | 3,029,558 | ||||||||||||||||
$ | 3,029,558 | $ | 7,862,510 | $ | 10,223,692 | $ | 4,011,796 | $ | (11,407,454 | ) | $ | 13,720,102 |
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Revenue | $ | — | $ | 1,062,655 | $ | 10,653,013 | $ | 4,511,673 | $ | — | $ | 16,227,341 | |||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Cost of services provided | — | 981,661 | 9,362,232 | 4,188,769 | — | 14,532,662 | |||||||||||||||||
Depreciation and amortization | — | 16,377 | 473,833 | 102,363 | — | 592,573 | |||||||||||||||||
Selling and general corporate expenses | — | 162,963 | 176,714 | 27,579 | — | 367,256 | |||||||||||||||||
Gain on sale of Healthcare Technologies | — | — | (156,309 | ) | — | — | (156,309 | ) | |||||||||||||||
Interest and other financing costs, net | — | 316,120 | 3,531 | 15,336 | — | 334,987 | |||||||||||||||||
Expense allocations | — | (315,432 | ) | 274,501 | 40,931 | — | — | ||||||||||||||||
— | 1,161,689 | 10,134,502 | 4,374,978 | — | 15,671,169 | ||||||||||||||||||
Income (Loss) before Income Taxes | — | (99,034 | ) | 518,511 | 136,695 | — | 556,172 | ||||||||||||||||
Provision (Benefit) for Income Taxes | — | (38,388 | ) | 109,144 | 36,950 | — | 107,706 | ||||||||||||||||
Equity in Net Income of Subsidiaries | 448,549 | — | — | — | (448,549 | ) | — | ||||||||||||||||
Net income (loss) | 448,549 | (60,646 | ) | 409,367 | 99,745 | (448,549 | ) | 448,466 | |||||||||||||||
Less: Net loss attributable to noncontrolling interest | — | — | (83 | ) | — | — | (83 | ) | |||||||||||||||
Net income (loss) attributable to Aramark stockholders | 448,549 | (60,646 | ) | 409,450 | 99,745 | (448,549 | ) | 448,549 | |||||||||||||||
Other comprehensive income (loss), net of tax | (125,742 | ) | (71,282 | ) | (553 | ) | (121,505 | ) | 193,340 | (125,742 | ) | ||||||||||||
Comprehensive income (loss) attributable to Aramark stockholders | $ | 322,807 | $ | (131,928 | ) | $ | 408,897 | $ | (21,760 | ) | $ | (255,209 | ) | $ | 322,807 |
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Revenue | $ | — | $ | 1,027,573 | $ | 10,432,088 | $ | 4,329,972 | $ | — | $ | 15,789,633 | |||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Cost of services provided | — | 848,739 | 9,132,991 | 4,016,181 | — | 13,997,911 | |||||||||||||||||
Depreciation and amortization | — | 19,466 | 483,106 | 93,610 | — | 596,182 | |||||||||||||||||
Selling and general corporate expenses | — | 195,093 | 158,064 | 23,972 | — | 377,129 | |||||||||||||||||
Interest and other financing costs, net | — | 329,027 | 266 | 17,242 | — | 346,535 | |||||||||||||||||
Expense allocations | — | (374,970 | ) | 353,628 | 21,342 | — | — | ||||||||||||||||
— | 1,017,355 | 10,128,055 | 4,172,347 | — | 15,317,757 | ||||||||||||||||||
Income before Income Taxes | — | 10,218 | 304,033 | 157,625 | — | 471,876 | |||||||||||||||||
Provision (Benefit) for Income Taxes | — | (3,521 | ) | (143,452 | ) | 50,409 | — | (96,564 | ) | ||||||||||||||
Equity in Net Income of Subsidiaries | 567,885 | — | — | — | (567,885 | ) | — | ||||||||||||||||
Net income | 567,885 | 13,739 | 447,485 | 107,216 | (567,885 | ) | 568,440 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 555 | — | — | 555 | |||||||||||||||||
Net income attributable to Aramark stockholders | 567,885 | 13,739 | 446,930 | 107,216 | (567,885 | ) | 567,885 | ||||||||||||||||
Other comprehensive income (loss), net of tax | 32,537 | 43,686 | 3,178 | (36,776 | ) | (10,088 | ) | 32,537 | |||||||||||||||
Comprehensive income attributable to Aramark stockholders | $ | 600,422 | $ | 57,425 | $ | 450,108 | $ | 70,440 | $ | (577,973 | ) | $ | 600,422 |
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Revenue | $ | — | $ | 1,041,490 | $ | 9,708,157 | $ | 3,854,765 | $ | — | $ | 14,604,412 | |||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Cost of services provided | — | 941,031 | 8,507,705 | 3,546,667 | — | 12,995,403 | |||||||||||||||||
Depreciation and amortization | — | 17,502 | 416,979 | 73,731 | — | 508,212 | |||||||||||||||||
Selling and general corporate expenses | — | 140,305 | 138,304 | 20,561 | — | 299,170 | |||||||||||||||||
Interest and other financing costs, net | — | 273,405 | (3,196 | ) | 10,776 | — | 280,985 | ||||||||||||||||
Expense allocations | — | (348,042 | ) | 318,199 | 29,843 | — | — | ||||||||||||||||
— | 1,024,201 | 9,377,991 | 3,681,578 | — | 14,083,770 | ||||||||||||||||||
Income Before Income Taxes | — | 17,289 | 330,166 | 173,187 | — | 520,642 | |||||||||||||||||
Provision for Income Taxes | — | 5,139 | 98,144 | 43,172 | — | 146,455 | |||||||||||||||||
Equity in Net Income of Subsidiaries | 373,923 | — | — | — | (373,923 | ) | — | ||||||||||||||||
Net income | 373,923 | 12,150 | 232,022 | 130,015 | (373,923 | ) | 374,187 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 264 | — | — | 264 | |||||||||||||||||
Net income attributable to Aramark stockholders | 373,923 | 12,150 | 231,758 | 130,015 | (373,923 | ) | 373,923 | ||||||||||||||||
Other comprehensive income, net of tax | 57,023 | 35,667 | 431 | 80,204 | (116,302 | ) | 57,023 | ||||||||||||||||
Comprehensive income attributable to Aramark stockholders | $ | 430,946 | $ | 47,817 | $ | 232,189 | $ | 210,219 | $ | (490,225 | ) | $ | 430,946 |
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by (used in) operating activities | $ | — | $ | (47,231 | ) | $ | 757,832 | $ | 290,539 | $ | (16,913 | ) | $ | 984,227 | |||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment and other | — | (12,160 | ) | (414,017 | ) | (76,913 | ) | — | (503,090 | ) | |||||||||||||
Disposals of property and equipment | — | 6,644 | 6,665 | 4,562 | — | 17,871 | |||||||||||||||||
Proceeds from divestiture | — | — | 293,711 | — | — | 293,711 | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (23,028 | ) | (21,835 | ) | — | (44,863 | ) | ||||||||||||||
Proceeds from government agencies related to property and equipment | — | — | 23,025 | — | — | 23,025 | |||||||||||||||||
Other investing activities | — | (356 | ) | 3,677 | 504 | — | 3,825 | ||||||||||||||||
Net cash used in investing activities | — | (5,872 | ) | (109,967 | ) | (93,682 | ) | — | (209,521 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from long-term borrowings | — | — | — | 77,630 | — | 77,630 | |||||||||||||||||
Payments of long-term borrowings | — | (545,809 | ) | (34,431 | ) | (74,320 | ) | — | (654,560 | ) | |||||||||||||
Payments of dividends | — | (108,439 | ) | — | — | — | (108,439 | ) | |||||||||||||||
Proceeds from issuance of common stock | — | 39,087 | — | — | — | 39,087 | |||||||||||||||||
Repurchase of common stock | — | (50,000 | ) | — | — | — | (50,000 | ) | |||||||||||||||
Other financing activities | — | (36,305 | ) | (2,192 | ) | (113 | ) | — | (38,610 | ) | |||||||||||||
Change in intercompany, net | — | 737,363 | (600,542 | ) | (153,734 | ) | 16,913 | — | |||||||||||||||
Net cash provided by (used in) financing activities | — | 35,897 | (637,165 | ) | (150,537 | ) | 16,913 | (734,892 | ) | ||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | — | — | — | (8,196 | ) | — | (8,196 | ) | |||||||||||||||
Decrease (increase) in cash and cash equivalents | — | (17,206 | ) | 10,700 | 38,124 | — | 31,618 | ||||||||||||||||
Cash and cash equivalents, beginning of period | 5 | 50,716 | 29,844 | 134,460 | — | 215,025 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 5 | $ | 33,510 | $ | 40,544 | $ | 172,584 | $ | — | $ | 246,643 |
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 111,541 | $ | 690,218 | $ | 315,703 | $ | (65,587 | ) | $ | 1,051,875 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment other | — | (13,133 | ) | (532,923 | ) | (82,548 | ) | — | (628,604 | ) | |||||||||||||
Disposals of property and equipment | — | 2,252 | 4,301 | 3,938 | — | 10,491 | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | (2,381,800 | ) | 244,581 | (103,065 | ) | — | (2,240,284 | ) | ||||||||||||||
Other investing activities | — | (3,095 | ) | 328 | (4,112 | ) | — | (6,879 | ) | ||||||||||||||
Net cash used in investing activities | — | (2,395,776 | ) | (283,713 | ) | (185,787 | ) | — | (2,865,276 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from long-term borrowings | — | 3,012,072 | — | 165,241 | — | 3,177,313 | |||||||||||||||||
Payments of long-term borrowings | — | (833,854 | ) | (28,142 | ) | (111,693 | ) | — | (973,689 | ) | |||||||||||||
Net change in funding under the Receivables Facility | — | — | — | (254,200 | ) | — | (254,200 | ) | |||||||||||||||
Payments of dividends | — | (103,115 | ) | — | — | — | (103,115 | ) | |||||||||||||||
Proceeds from issuance of common stock | — | 21,507 | — | — | — | 21,507 | |||||||||||||||||
Repurchase of common stock | — | (24,410 | ) | — | — | — | (24,410 | ) | |||||||||||||||
Other financing activities | — | (45,905 | ) | (2,958 | ) | (390 | ) | — | (49,253 | ) | |||||||||||||
Change in intercompany, net | — | 197,144 | (383,074 | ) | 120,343 | 65,587 | — | ||||||||||||||||
Net cash provided by (used in) financing activities | — | 2,223,439 | (414,174 | ) | (80,699 | ) | 65,587 | 1,794,153 | |||||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | — | — | — | (4,524 | ) | — | (4,524 | ) | |||||||||||||||
(Decrease) increase in cash and cash equivalents | — | (60,796 | ) | (7,669 | ) | 44,693 | — | (23,772 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | 5 | 111,512 | 37,513 | 89,767 | — | 238,797 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 5 | $ | 50,716 | $ | 29,844 | $ | 134,460 | $ | — | $ | 215,025 |
Aramark (Parent) | Issuers | Guarantors | Non Guarantors | Eliminations | Consolidated | ||||||||||||||||||
Net cash provided by operating activities | $ | — | $ | 261,282 | $ | 779,801 | $ | 200,018 | $ | (188,275 | ) | $ | 1,052,826 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Purchases of property and equipment and other | — | (20,939 | ) | (443,262 | ) | (88,528 | ) | — | (552,729 | ) | |||||||||||||
Disposals of property and equipment | — | 494 | 14,780 | 3,632 | — | 18,906 | |||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (37,130 | ) | (104,992 | ) | — | (142,122 | ) | ||||||||||||||
Other investing activities | — | (69,401 | ) | 36,946 | 29,916 | — | (2,539 | ) | |||||||||||||||
Net cash used in investing activities | — | (89,846 | ) | (428,666 | ) | (159,972 | ) | — | (678,484 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from long-term borrowings | — | 3,451,164 | — | 400,253 | — | 3,851,417 | |||||||||||||||||
Payments of long-term borrowings | — | (3,572,268 | ) | (19,851 | ) | (319,873 | ) | — | (3,911,992 | ) | |||||||||||||
Net change in funding under the Receivables Facility | — | — | — | (13,800 | ) | — | (13,800 | ) | |||||||||||||||
Payments of dividends | — | (100,813 | ) | — | — | — | (100,813 | ) | |||||||||||||||
Proceeds from issuance of common stock | — | 28,779 | — | — | — | 28,779 | |||||||||||||||||
Repurchase of common stock | — | (100,000 | ) | — | — | — | (100,000 | ) | |||||||||||||||
Other financing activities | — | (69,172 | ) | (2,973 | ) | 29,868 | — | (42,277 | ) | ||||||||||||||
Change in intercompany, net | — | 254,536 | (322,142 | ) | (120,669 | ) | 188,275 | — | |||||||||||||||
Net cash used in financing activities | — | (107,774 | ) | (344,966 | ) | (24,221 | ) | 188,275 | (288,686 | ) | |||||||||||||
Effect of foreign exchange rates on cash and cash equivalents | — | — | — | 561 | — | 561 | |||||||||||||||||
Increase in cash and cash equivalents | — | 63,662 | 6,169 | 16,386 | — | 86,217 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 5 | 47,850 | 31,344 | 73,381 | — | 152,580 | |||||||||||||||||
Cash and cash equivalents, end of period | $ | 5 | $ | 111,512 | $ | 37,513 | $ | 89,767 | $ | — | $ | 238,797 |
Additions | Reductions | |||||||||||||||||||||||||
Balance, Beginning of Period | Charged to Income | Deductions from Reserves(1) | Balance, End of Period | |||||||||||||||||||||||
Description | ||||||||||||||||||||||||||
Fiscal Year 2020 | ||||||||||||||||||||||||||
Reserve for doubtful accounts, advances & current notes receivable | $ | 49,566 | $ | 64,655 | $ | 39,296 | $ | 74,925 | ||||||||||||||||||
Fiscal Year 2019 | ||||||||||||||||||||||||||
Reserve for doubtful accounts, advances & current notes receivable | $ | 52,682 | $ | 21,821 | $ | 24,937 | $ | 49,566 | ||||||||||||||||||
Fiscal Year 2018 | ||||||||||||||||||||||||||
Reserve for doubtful accounts, advances & current notes receivable | $ | 53,416 | $ | 22,009 | $ | 22,743 | $ | 52,682 |
Additions | Reductions | |||||||||||||||
Balance, Beginning of Period | Charged to Income | Deductions from Reserves(1) | Balance, End of Period | |||||||||||||
Description | ||||||||||||||||
Fiscal Year 2019 | ||||||||||||||||
Reserve for doubtful accounts, advances & current notes receivable | $ | 52,682 | $ | 21,821 | $ | 24,937 | $ | 49,566 | ||||||||
Fiscal Year 2018 | ||||||||||||||||
Reserve for doubtful accounts, advances & current notes receivable | $ | 53,416 | $ | 22,009 | $ | 22,743 | $ | 52,682 | ||||||||
Fiscal Year 2017 | ||||||||||||||||
Reserve for doubtful accounts, advances & current notes receivable | $ | 48,058 | $ | 18,141 | $ | 12,783 | $ | 53,416 |
(1) | Amounts determined not to be collectible and charged against the reserve and translation. |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104* | Inline XBRL for the cover page of this Annual Report on Form 10-K; included in Exhibit 101 Inline XBRL document set. |
# These merger agreements are filed as exhibits to this Annual Report on Form 10-K to provide investors and security holders with information regarding their terms. They are not intended to provide any other factual or financial information about the Company, Avendra, AmeriPride or their respective subsidiaries and affiliates. The representations, warranties and covenants contained in each of the merger agreements were made only for purposes of that agreement and as of the date of such merger agreement or such other date as is specified in such merger agreement; were solely for the benefit of the parties to such merger agreement; have been qualified by confidential disclosures made for the purposes of allocating contractual risk between the parties to such merger agreement instead of establishing these matters as facts; and are subject to materiality qualifications contained in such merger agreement that may differ from what may be viewed as material by investors. Investors should not rely on the representations, warranties and covenants or any description thereof as characterizations of the actual state of facts or condition of the Company, Avendra, AmeriPride or any of their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties and covenants may change after the date of the merger agreements, which subsequent information may or may not be fully reflected in public disclosures by the Company. The merger agreements should not be read alone but should instead be read in conjunction with the other information that is or will be included in reports and other filings that the Company files with the Securities and Exchange Commission. |