Condensed Consolidating Financial Statements of Aramark and Subsidiaries | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF ARAMARK AND SUBSIDIARIES: The following condensed consolidating financial statements of the Company have been prepared pursuant to Rule 3-10 of Regulation S-X. These condensed consolidating financial statements have been prepared from the Company’s financial information on the same basis of accounting as the condensed consolidated financial statements. Interest expense and certain other costs are partially allocated to all of the subsidiaries of the Company. Goodwill and other intangible assets have been allocated to the subsidiaries based on management’s estimates. The 2020 Notes, 2024 Notes and 2026 Notes are obligations of the Company's wholly-owned subsidiary, Aramark Services, Inc., and are each jointly and severally guaranteed on a senior unsecured basis by the Company and substantially all of the Company’s existing and future domestic subsidiaries (excluding the Receivables Facility subsidiary) (“Guarantors”). Each of the Guarantors is wholly-owned, directly or indirectly, by the Company. All other subsidiaries of the Company, either direct or indirect, do not guarantee the 2020 Notes, 2024 Notes or 2026 Notes (“Non-Guarantors”). The Guarantors also guarantee certain other debt. CONDENSED CONSOLIDATING BALANCE SHEETS July 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 63,686 $ 36,040 $ 96,776 $ — $ 196,507 Receivables — 343 344,375 1,090,026 — 1,434,744 Inventories, at lower of cost or market — 15,143 476,655 69,444 — 561,242 Prepayments and other current assets — 72,897 76,990 86,204 — 236,091 Total current assets 5 152,069 934,060 1,342,450 — 2,428,584 Property and Equipment, net — 31,258 773,651 190,149 — 995,058 Goodwill — 173,104 3,982,737 422,069 — 4,577,910 Investment in and Advances to Subsidiaries 2,089,415 5,458,441 588,247 226,304 (8,362,407 ) — Other Intangible Assets — 29,729 914,400 103,947 — 1,048,076 Other Assets — 60,396 993,707 229,767 (2,001 ) 1,281,869 $ 2,089,420 $ 5,904,997 $ 8,186,802 $ 2,514,686 $ (8,364,408 ) $ 10,331,497 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 21,992 $ 12,922 $ 15,152 $ — $ 50,066 Accounts payable — 129,012 306,786 247,515 — 683,313 Accrued expenses and other liabilities 100 144,462 657,599 265,080 (3,739 ) 1,063,502 Total current liabilities 100 295,466 977,307 527,747 (3,739 ) 1,796,881 Long-term Borrowings — 4,673,903 44,058 665,157 — 5,383,118 Deferred Income Taxes and Other Noncurrent Liabilities — 440,478 540,701 71,019 — 1,052,198 Intercompany Payable — — 4,943,383 1,095,136 (6,038,519 ) — Redeemable Noncontrolling Interest — — 9,980 — — 9,980 Total Stockholders' Equity 2,089,320 495,150 1,671,373 155,627 (2,322,150 ) 2,089,320 $ 2,089,420 $ 5,904,997 $ 8,186,802 $ 2,514,686 $ (8,364,408 ) $ 10,331,497 CONDENSED CONSOLIDATING BALANCE SHEETS October 2, 2015 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 31,792 $ 42,811 $ 47,808 $ — $ 122,416 Receivables — 3,721 295,618 1,145,235 — 1,444,574 Inventories, at lower of cost or market — 15,981 487,551 71,731 — 575,263 Prepayments and other current assets — 59,706 74,395 102,769 — 236,870 Total current assets 5 111,200 900,375 1,367,543 — 2,379,123 Property and Equipment, net — 20,713 785,274 153,358 — 959,345 Goodwill — 173,104 3,982,737 403,127 — 4,558,968 Investment in and Advances to Subsidiaries 1,883,454 5,586,010 479,517 16,121 (7,965,102 ) — Other Intangible Assets — 29,729 985,449 96,802 — 1,111,980 Other Assets — 40,128 919,811 229,004 (2,002 ) 1,186,941 $ 1,883,459 $ 5,960,884 $ 8,053,163 $ 2,265,955 $ (7,967,104 ) $ 10,196,357 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 21,921 $ 13,013 $ 46,493 $ — $ 81,427 Accounts payable — 152,844 419,188 278,008 — 850,040 Accrued expenses and other liabilities 100 135,540 818,610 295,183 88 1,249,521 Total current liabilities 100 310,305 1,250,811 619,684 88 2,180,988 Long-term Borrowings — 4,366,341 44,464 773,792 — 5,184,597 Deferred Income Taxes and Other Noncurrent Liabilities — 415,284 500,632 21,395 — 937,311 Intercompany Payable — — 5,096,806 1,075,836 (6,172,642 ) — Redeemable Noncontrolling Interest — — 10,102 — — 10,102 Total Stockholders' Equity 1,883,359 868,954 1,150,348 (224,752 ) (1,794,550 ) 1,883,359 $ 1,883,459 $ 5,960,884 $ 8,053,163 $ 2,265,955 $ (7,967,104 ) $ 10,196,357 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended July 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 263,378 $ 2,406,759 $ 916,771 $ — $ 3,586,908 Costs and Expenses: — Cost of services provided — 242,148 2,169,767 821,969 — 3,233,884 Depreciation and amortization — 3,890 101,569 16,904 — 122,363 Selling and general corporate expenses — 24,167 32,599 4,551 — 61,317 Interest and other financing costs, net — 98,762 (653 ) 5,655 — 103,764 Expense allocations (95,447 ) 80,109 15,338 — — — 273,520 2,383,391 864,417 — 3,521,328 Income (Loss) before Income Taxes — (10,142 ) 23,368 52,354 — 65,580 Provision (Benefit) for Income Taxes — (3,718 ) 6,218 18,222 — 20,722 Equity in Net Income of Subsidiaries 44,765 — — — (44,765 ) — Net income (loss) 44,765 (6,424 ) 17,150 34,132 (44,765 ) 44,858 Less: Net income attributable to noncontrolling interest — — 93 — — 93 Net income (loss) attributable to Aramark stockholders 44,765 (6,424 ) 17,057 34,132 (44,765 ) 44,765 Other comprehensive income (loss), net of tax (7,929 ) (10,635 ) (3,010 ) (2,356 ) 16,001 (7,929 ) Comprehensive income (loss) attributable to Aramark stockholders $ 36,836 $ (17,059 ) $ 14,047 $ 31,776 $ (28,764 ) $ 36,836 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the nine months ended July 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 773,795 $ 7,357,628 $ 2,740,582 $ — $ 10,872,005 Costs and Expenses: Cost of services provided — 712,877 6,503,117 2,522,123 — 9,738,117 Depreciation and amortization — 11,758 307,149 51,265 — 370,172 Selling and general corporate expenses — 96,596 97,575 13,994 — 208,165 Interest and other financing costs, net — 229,226 (1,813 ) 19,422 — 246,835 Expense allocations — (250,932 ) 222,588 28,344 — — — 799,525 7,128,616 2,635,148 — 10,563,289 Income (Loss) before Income Taxes — (25,730 ) 229,012 105,434 — 308,716 Provision (Benefit) for Income Taxes — (8,642 ) 75,537 37,030 — 103,925 Equity in Net Income of Subsidiaries 204,462 — — — (204,462 ) — Net income (loss) 204,462 (17,088 ) 153,475 68,404 (204,462 ) 204,791 Less: Net income attributable to noncontrolling interest — — 329 — — 329 Net income (loss) attributable to Aramark stockholders 204,462 (17,088 ) 153,146 68,404 (204,462 ) 204,462 Other comprehensive income (loss), net of tax 5,541 (19,076 ) (6,292 ) 27,574 (2,206 ) 5,541 Comprehensive income (loss) attributable to Aramark stockholders $ 210,003 $ (36,164 ) $ 146,854 $ 95,978 $ (206,668 ) $ 210,003 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended July 3, 2015 ( in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 258,155 $ 2,274,567 $ 953,481 $ — $ 3,486,203 Costs and Expenses: Cost of services provided — 236,502 2,042,537 885,661 — 3,164,700 Depreciation and amortization — 2,551 104,071 18,710 — 125,332 Selling and general corporate expenses 425 40,415 34,182 4,271 — 79,293 Interest and other financing costs — 62,789 (729 ) 9,165 — 71,225 Expense allocations (425 ) (87,159 ) 76,595 10,989 — — — 255,098 2,256,656 928,796 — 3,440,550 Income before Income Taxes — 3,057 17,911 24,685 — 45,653 Provision for Income Taxes — 1,036 2,205 8,374 — 11,615 Equity in Net Income of Subsidiaries 33,761 — — — (33,761 ) — Net income 33,761 2,021 15,706 16,311 (33,761 ) 34,038 Less: Net income attributable to noncontrolling interest — — 277 — — 277 Net income attributable to Aramark stockholders 33,761 2,021 15,429 16,311 (33,761 ) 33,761 Other comprehensive income (loss), net of tax 8,687 10,679 2,078 (2,670 ) (10,087 ) 8,687 Comprehensive income attributable to Aramark stockholders $ 42,448 $ 12,700 $ 17,507 $ 13,641 $ (43,848 ) $ 42,448 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the nine months ended July 3, 2015 ( in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 759,800 $ 7,096,205 $ 2,927,178 $ — $ 10,783,183 Costs and Expenses: Cost of services provided — 670,130 6,305,901 2,715,164 — 9,691,195 Depreciation and amortization — 8,055 309,228 58,474 — 375,757 Selling and general corporate expenses 1,784 125,611 102,564 12,638 — 242,597 Interest and other financing costs — 190,744 (1,643 ) 25,253 — 214,354 Expense allocations (1,784 ) (249,963 ) 218,772 32,975 — — — 744,577 6,934,822 2,844,504 — 10,523,903 Income before Income Taxes — 15,223 161,383 82,674 — 259,280 Provision for Income Taxes — 5,298 45,624 28,595 — 79,517 Equity in Net Income of Subsidiaries 179,081 — — — (179,081 ) — Net income 179,081 9,925 115,759 54,079 (179,081 ) 179,763 Less: Net income attributable to noncontrolling interest — — 682 — — 682 Net income attributable to Aramark stockholders 179,081 9,925 115,077 54,079 (179,081 ) 179,081 Other comprehensive income (loss), net of tax (47,701 ) (4,441 ) (1,211 ) (72,434 ) 78,086 (47,701 ) Comprehensive income (loss) attributable to Aramark stockholders $ 131,380 $ 5,484 $ 113,866 $ (18,355 ) $ (100,995 ) $ 131,380 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended July 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Net cash provided by operating activities $ — $ 36,531 $ 160,242 $ 175,913 $ (7,771 ) $ 364,915 Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (16,741 ) (283,547 ) (49,882 ) — (350,170 ) Disposals of property and equipment — — — 18,029 — 18,029 Acquisitions of businesses, net of cash acquired — — (231 ) (59,146 ) — (59,377 ) Other investing activities — 1,213 7,200 (1,219 ) — 7,194 Net cash used in investing activities — (15,528 ) (276,578 ) (92,218 ) — (384,324 ) Cash flows from financing activities: Proceeds from long-term borrowings — 1,398,001 — 394 — 1,398,395 Payments of long-term borrowings — (1,111,793 ) (11,285 ) (122,371 ) — (1,245,449 ) Net change in funding under the Receivables Facility — — — (9,730 ) — (9,730 ) Payments of dividends — (68,873 ) — — — (68,873 ) Proceeds from issuance of common stock — 23,296 — — — 23,296 Other financing activities — (1,647 ) (2,041 ) (451 ) — (4,139 ) Change in intercompany, net — (228,093 ) 122,891 97,431 7,771 — Net cash provided by (used in) financing activities — 10,891 109,565 (34,727 ) 7,771 93,500 Increase (decrease) in cash and cash equivalents — 31,894 (6,771 ) 48,968 — 74,091 Cash and cash equivalents, beginning of period 5 31,792 42,811 47,808 — 122,416 Cash and cash equivalents, end of period $ 5 $ 63,686 $ 36,040 $ 96,776 $ — $ 196,507 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended July 3, 2015 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ (654 ) $ (16,199 ) $ (145,639 ) $ 324,269 $ (4,193 ) $ 157,584 Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (19,506 ) (291,290 ) (43,333 ) — (354,129 ) Disposals of property and equipment — 394 5,245 2,019 — 7,658 Acquisitions of businesses, net of cash acquired — — (3,349 ) — — (3,349 ) Other investing activities — (156 ) 15,848 (12,719 ) — 2,973 Net cash used in investing activities — (19,268 ) (273,546 ) (54,033 ) — (346,847 ) Cash flows from financing activities: Proceeds from long-term borrowings — 199,000 — 35,856 — 234,856 Payments of long-term borrowings — (16,438 ) (11,262 ) (12,153 ) — (39,853 ) Net change in funding under the Receivables Facility — — — (7,870 ) — (7,870 ) Payments of dividends — (61,236 ) — — — (61,236 ) Proceeds from issuance of common stock — 24,109 — — — 24,109 Other financing activities — 49,095 (3,103 ) (589 ) — 45,403 Change in intercompany, net 654 (159,675 ) 431,335 (276,507 ) 4,193 — Net cash provided by (used in) financing activities 654 34,855 416,970 (261,263 ) 4,193 195,409 Increase (decrease) in cash and cash equivalents — (612 ) (2,215 ) 8,973 — 6,146 Cash and cash equivalents, beginning of period 5 26,284 41,639 43,762 — 111,690 Cash and cash equivalents, end of period $ 5 $ 25,672 $ 39,424 $ 52,735 $ — $ 117,836 |