Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 30, 2016 | Jan. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Aramark | |
Entity Central Index Key | 1,584,509 | |
Entity Filer Category | Large Accelerated Filer | |
Current Fiscal Year End Date | --09-29 | |
Entity Common Stock, Shares Outstanding | 246,304,708 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 30, 2016 | Sep. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 146,951 | $ 152,580 |
Receivables (less allowances: 2017 - $45,780; 2016 - $48,058) | 1,492,291 | 1,476,349 |
Inventories | 563,935 | 587,155 |
Prepayments and other current assets | 170,418 | 276,487 |
Total current assets | 2,373,595 | 2,492,571 |
Property and Equipment, net | 997,562 | 1,023,083 |
Goodwill | 4,608,287 | 4,628,881 |
Other Intangible Assets | 1,084,279 | 1,111,883 |
Other Assets | 1,320,201 | 1,325,654 |
Assets | 10,383,924 | 10,582,072 |
Current Liabilities: | ||
Current maturities of long-term borrowings | 47,603 | 46,522 |
Accounts payable | 703,878 | 847,588 |
Accrued expenses and other current liabilities | 1,027,768 | 1,290,635 |
Total current liabilities | 1,779,249 | 2,184,745 |
Long-Term Borrowings | 5,364,855 | 5,223,514 |
Deferred Income Taxes and Other Noncurrent Liabilities | 991,453 | 1,003,013 |
Redeemable Noncontrolling Interest | 9,825 | 9,794 |
Stockholders' Equity: | ||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2017—274,528,737 shares and 2016—272,565,923 shares; and outstanding: 2017—246,064,656 shares and 2016—244,713,580 shares) | 2,745 | 2,726 |
Capital surplus | 2,937,191 | 2,921,725 |
Retained earnings/(Accumulated deficit) | 74,707 | (33,778) |
Accumulated other comprehensive loss | (205,465) | (180,783) |
Treasury stock (shares held in treasury: 2017—28,464,081 shares and 2016—27,852,343 shares) | (570,636) | (548,884) |
Total stockholders' equity | 2,238,542 | 2,161,006 |
Liabilities and Stockholders’ Equity | $ 10,383,924 | $ 10,582,072 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2016 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 45,780 | $ 48,058 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 274,528,737 | 272,565,923 |
Common stock, shares outstanding (in shares) | 246,064,656 | 244,713,580 |
Treasury stock, shares held in treasury (in shares) | 28,464,081 | 27,852,343 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 3,735,383 | $ 3,710,275 |
Costs and Expenses: | ||
Cost of services provided | 3,299,329 | 3,294,523 |
Depreciation and amortization | 126,527 | 127,518 |
Selling and general corporate expenses | 65,472 | 74,141 |
Total Costs and Expenses | 3,491,328 | 3,496,182 |
Operating income | 244,055 | 214,093 |
Interest and Other Financing Costs, net | 65,677 | 71,320 |
Income Before Income Taxes | 178,378 | 142,773 |
Provision for Income Taxes | 52,943 | 49,337 |
Net income | 125,435 | 93,436 |
Less: Net income attributable to noncontrolling interest | 96 | 93 |
Net income attributable to Aramark stockholders | $ 125,339 | $ 93,343 |
Earnings per share attributable to Aramark stockholders: | ||
Basic (in dollars per share) | $ 0.51 | $ 0.39 |
Diluted (in dollars per share) | $ 0.50 | $ 0.38 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 244,758 | 240,521 |
Diluted (in shares) | 252,593 | 247,613 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 125,435 | $ 93,436 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | (34,880) | (10,572) |
Fair value of cash flow hedges | 10,198 | 15,574 |
Other comprehensive income (loss), net of tax | (24,682) | 5,002 |
Comprehensive income | 100,753 | 98,438 |
Less: Net income attributable to noncontrolling interest | 96 | 93 |
Comprehensive income attributable to Aramark stockholders | $ 100,657 | $ 98,345 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 125,435 | $ 93,436 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 126,527 | 127,518 |
Deferred income taxes | 819 | 21,399 |
Share-based compensation expense | 16,224 | 15,270 |
Changes in operating assets and liabilities | (296,738) | (429,795) |
Other operating activities | 1,707 | 3,179 |
Net cash used in operating activities | (26,026) | (168,993) |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (106,600) | (91,499) |
Disposals of property and equipment | 1,349 | 2,017 |
Acquisition of certain businesses, net of cash acquired | (1,045) | (231) |
Other investing activities | 166 | 3,579 |
Net cash used in investing activities | (106,130) | (86,134) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 45,987 | 431,736 |
Payments of long-term borrowings | (13,609) | (172,522) |
Net change in funding under the Receivables Facility | 132,000 | 25,000 |
Payments of dividends | (25,246) | (22,853) |
Proceeds from issuance of common stock | 3,121 | 7,512 |
Other financing activities | (15,726) | (20,804) |
Net cash provided by financing activities | 126,527 | 248,069 |
Decrease in cash and cash equivalents | (5,629) | (7,058) |
Cash and cash equivalents, beginning of period | 152,580 | 122,416 |
Cash and cash equivalents, end of period | 146,951 | 115,358 |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | 27,500 | 51,700 |
Income taxes paid | $ 17,800 | $ 10,800 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Aramark (the "Company") is a leading global provider of food, facilities and uniform services. The Company's core market is North America (composed of the United States and Canada), which is supplemented by an additional 17 -country footprint serving many of the fastest growing global geographies. The Company operates its business in three reportable segments that share many of the same operating characteristics: Food and Support Services North America ("FSS North America"), Food and Support Services International ("FSS International") and Uniform and Career Apparel ("Uniform"). The condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited consolidated financial statements, and the notes to those statements, included in the Company's Form 10-K filed with the SEC on November 23, 2016 . The Condensed Consolidated Balance Sheet as of September 30, 2016 was derived from audited financial statements which have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of the Company, the statements include all adjustments, which are of a normal, recurring nature, required for a fair presentation for the periods presented. The results of operations for interim periods are not necessarily indicative of the results for a full year, due to the seasonality of some of the Company's business activities and the possibility of changes in general economic conditions. The condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling financial interest is maintained. All significant intercompany transactions and accounts have been eliminated. The Company has an ownership interest in a subsidiary with a redeemable noncontrolling interest. New Accounting Standard Updates In January 2017, the Financial Accounting Standards Board ("FASB") issued an accounting standard update ("ASU") to simplify the subsequent measurement of goodwill as part of the impairment test. The guidance is effective for the Company in the first quarter of fiscal 2021 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In January 2017, the FASB issued an ASU to clarify the definition of a business. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In October 2016, the FASB issued an ASU to require entities to recognize the income tax consequences of certain intercompany assets transfers at the transaction date. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In August 2016, the FASB issued an ASU to address the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In March 2016, the FASB issued an ASU to update several aspects of the accounting for share-based payment transactions. Upon adoption, the ASU requires that excess tax benefits for share-based payments be recorded as a reduction to the provision for income taxes and reflected within cash flows from operating activities rather than being recorded within stockholders’ equity and reflected within cash flow from financing activities. The standard also clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on a cash flow statement, and provides an accounting policy election to account for forfeitures as they occur. The guidance is effective for the Company in the first quarter of fiscal 2018 and early adoption is permitted. The Company elected to early adopt the guidance as of the beginning of its first quarter of fiscal 2017. The impact to the Condensed Consolidated Statements of Income for the three months ended December 30, 2016 was $6.3 million of excess tax benefit recorded as a reduction to the provision for income taxes. The adoption impact to the Condensed Consolidated Balance Sheets was a cumulative-effect adjustment of approximately $9.8 million to increase retained earnings for previously unrecognized excess tax benefits. The Company applied the guidance related to the presentation in the Condensed Consolidated Statements of Cash Flows on a retrospective basis. The excess tax benefit of $6.3 million and $6.4 million f or share-based awards is included in operating activities, previously classified in financing activities, and approximately $15.3 million and $19.9 million of cash paid for employee taxes for withheld shares is included in financing activities, previously classified in operating activities, for the three months ended December 30, 2016 and January 1, 2016, respectively. As a result of the adoption, the excess tax benefit is no longer included in the calculation of diluted shares under the treasury stock method, which increased the diluted shares outstanding by approximately 2.0 million shares. The Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In February 2016, the FASB issued an ASU requiring lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and to disclose key information about lease arrangements. The guidance is effective for the Company in the first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In July 2015, the FASB issued an ASU which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. The guidance is effective for the Company in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In June 2014, the FASB issued an ASU on stock compensation which requires that a performance target affecting vesting and that could be achieved after the requisite service period be treated as a performance condition. The Company adopted the guidance in the first quarter of fiscal 2017 which did not have an impact on the condensed consolidated financial statements. In May 2014, the FASB issued an ASU on revenue from contracts with customers which outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In July 2015, the FASB voted to defer the effective date of the new revenue standard by one year, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date). The guidance is effective for the Company beginning in the first quarter of fiscal 2019. As the new standard will supersede most existing revenue guidance affecting the Company, it could impact revenue and cost recognition on contracts across all reportable segments. The Company has been closely monitoring the FASB activity related to the new standard and continues to work to conclude on specific interpretative issues. The Company also continues to make progress on a comprehensive contract review project in order to develop a full understanding of the adoption impact on the consolidated financial statements. Comprehensive Income Comprehensive income includes all changes to stockholders' equity during a period, except those resulting from investments by and distributions to stockholders. Components of comprehensive income include net income, changes in foreign currency translation adjustments (net of tax), pension plan adjustments (net of tax), changes in the fair value of cash flow hedges (net of tax) and changes to the share of any equity investees' comprehensive income (net of tax). The summary of the components of comprehensive income (loss) is as follows (in thousands): Three Months Ended December 30, 2016 January 1, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 125,435 $ 93,436 Foreign currency translation adjustments (43,648 ) 8,768 (34,880 ) (10,563 ) (9 ) (10,572 ) Fair value of cash flow hedges 16,718 (6,520 ) 10,198 16,079 (505 ) 15,574 Other comprehensive income (loss) (26,930 ) 2,248 (24,682 ) 5,516 (514 ) 5,002 Comprehensive income 100,753 98,438 Less: Net income attributable to noncontrolling interest 96 93 Comprehensive income attributable to Aramark stockholders $ 100,657 $ 98,345 Accumulated other comprehensive loss consists of the following (in thousands): December 30, 2016 September 30, 2016 Pension plan adjustments $ (65,267 ) $ (65,267 ) Foreign currency translation adjustments (103,341 ) (68,461 ) Cash flow hedges (26,175 ) (36,373 ) Share of equity investee's accumulated other comprehensive loss (10,682 ) (10,682 ) $ (205,465 ) $ (180,783 ) Other Assets Other assets consist primarily of client contract investments, investments in 50% or less owned entities, computer software costs and long-term receivables. Client contract investments generally represent a cash payment provided by the Company to help finance improvement or renovation at the facility from which the Company operates. These amounts are amortized over the contract period. If a contract is terminated prior to its maturity date, the Company is generally reimbursed for the unamortized client contract investment amount. Client contract investments, net of accumulated amortization, were $877.6 million and $865.0 million as of December 30, 2016 and September 30, 2016, respectively. Income Taxes Effective for the first quarter of fiscal 2017, the earnings since the beginning of the fiscal year of certain of the Company's foreign subsidiaries are intended to be indefinitely reinvested in operations outside the U.S. and, therefore, U.S. taxes have not been recorded on those earnings. |
Severance
Severance | 3 Months Ended |
Dec. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Severance | SEVERANCE: The Company previously initiated a series of actions and developed plans for streamlining and improving the efficiencies and effectiveness of its selling, general and administrative functions. As of December 30, 2016 and September 30, 2016 , the Company had an accrual of approximately $20.3 million and $26.1 million , respectively, related to the unpaid obligations for these actions. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS: Goodwill represents the excess of the fair value of consideration paid for an acquired entity over the fair value of assets acquired and liabilities assumed in a business combination. Goodwill is not amortized and is subject to an impairment test that the Company conducts annually or more frequently if a change in circumstances or the occurrence of events indicates that potential impairment exists, using discounted cash flows. Changes in total goodwill during the three months ended December 30, 2016 follow (in thousands): Segment September 30, 2016 Acquisition Translation December 30, 2016 FSS North America $ 3,635,614 $ 220 $ (42 ) $ 3,635,792 FSS International 418,488 — (20,772 ) 397,716 Uniform 574,779 — — 574,779 $ 4,628,881 $ 220 $ (20,814 ) $ 4,608,287 Other intangible assets consist of the following (in thousands): December 30, 2016 September 30, 2016 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,298,148 $ (989,651 ) $ 308,497 $ 1,793,739 $ (1,462,058 ) $ 331,681 Trade names 777,415 (1,633 ) 775,782 781,835 (1,633 ) 780,202 $ 2,075,563 $ (991,284 ) $ 1,084,279 $ 2,575,574 $ (1,463,691 ) $ 1,111,883 Acquisition-related intangible assets consist of customer relationship assets and the Aramark, Avoca, HPSI and other trade names. Customer relationship assets are being amortized principally on a straight-line basis over the expected period of benefit, 3 to 24 years, with a weighted average life of approximately 13 years. The Aramark, Avoca and HPSI trade names are indefinite lived intangible assets and are not amortizable but are evaluated for impairment at least annually. Amortization of intangible assets for the three months ended December 30, 2016 and January 1, 2016 was approximately $22.5 million and $32.0 million , respectively. |
Borrowings
Borrowings | 3 Months Ended |
Dec. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS: During the first quarter of fiscal 2016, the Company repaid a U.S. dollar denominated term loan of a Canadian subsidiary that had been borrowed under the Company's senior secured credit agreement and was due in July 2016 in the amount of $74.1 million . On December 17, 2015, Aramark Services, Inc. ("the Issuer"), a subsidiary of the Company, issued $400 million of 5.125% Senior Notes (the "Original 2024 Notes"), due January 15, 2024, pursuant to an indenture, dated as of December 17, 2015 (the "Base Indenture"), entered into by the Issuer, the Company and certain other Aramark entities, as guarantors of the Original 2024 Notes and the Bank of New York Mellon, as trustee. The Original 2024 Notes were issued at par and the net proceeds were used for general corporate purposes and to reduce the outstanding balance under the Company's revolving credit facility. The Company paid approximately $6.0 million in financing fees related to the Original 2024 Notes during the first quarter of fiscal 2016. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS: The Company enters into contractual derivative arrangements to manage changes in market conditions related to interest on debt obligations, foreign currency exposures and exposure to fluctuating gasoline and diesel fuel prices. Derivative instruments utilized during the period include interest rate swap agreements, foreign currency forward exchange contracts and gasoline and diesel fuel agreements. All derivative instruments are recognized as either assets or liabilities on the balance sheet at fair value at the end of each quarter. The counterparties to the Company's contractual derivative agreements are all major international financial institutions. The Company is exposed to credit loss in the event of nonperformance by these counterparties. The Company continually monitors its positions and the credit ratings of its counterparties, and does not anticipate nonperformance by the counterparties. For designated hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Cash Flow Hedges The Company has $2.4 billion notional amount of outstanding interest rate swap agreements, fixing the rate on a like amount of variable rate borrowings. Changes in the fair value of a derivative that is designated as and meets all the required criteria for a cash flow hedge are recorded in accumulated other comprehensive income (loss) and reclassified into earnings as the underlying hedged item affects earnings. Approximately ($26.2) million and ($36.4) million of unrealized net of tax losses related to the interest rate swaps were included in "Accumulated other comprehensive loss" as of December 30, 2016 and September 30, 2016 , respectively. The hedge ineffectiveness for these cash flow hedging instruments during the three months ended December 30, 2016 and January 1, 2016 was not material. During the first quarter of fiscal 2016, the Company repaid a U.S. dollar denominated term loan of a Canadian subsidiary in the amount of $74.1 million . As a result of this repayment, the Company terminated its $74.1 million of outstanding amortizing cross currency swap agreements, which resulted in a pre-tax charge of approximately $1.1 million recorded to "Interest and Other Financing Costs, net" in the Condensed Consolidated Statements of Income for the three months ended January 1, 2016. The termination of these agreements resulted in the Company receiving $5.7 million of proceeds. The following table summarizes the effect of our derivatives designated as cash flow hedging instruments (effective portion) on Other comprehensive income (loss) (in thousands): Three Months Ended December 30, 2016 January 1, 2016 Interest rate swap agreements $ 10,745 $ 7,117 Cross currency swap agreements — (2,116 ) $ 10,745 $ 5,001 Derivatives not Designated in Hedging Relationships The Company entered into a series of pay fixed/receive floating gasoline and diesel fuel agreements based on the Department of Energy weekly retail on-highway index in order to limit its exposure to price fluctuations for gasoline and diesel fuel. As of December 30, 2016 , the Company has contracts for approximately 29.0 million gallons outstanding for fiscal 2017 and fiscal 2018. The Company does not record its gasoline and diesel fuel agreements as hedges for accounting purposes. The impact on earnings related to the change in fair value of these unsettled contracts was a gain of approximately $4.4 million and a loss of approximately $0.9 million for the three months ended December 30, 2016 and January 1, 2016 , respectively. As of December 30, 2016 , the Company had foreign currency forward exchange contracts outstanding with notional amounts of €48.7 million , £67.4 million and CAD 113.5 million to mitigate the risk of changes in foreign currency exchange rates on short-term intercompany loans to certain international subsidiaries. Gains and losses on these foreign currency exchange contracts are recognized in income as the contracts were not designated as hedging instruments, substantially offsetting currency transaction gains and losses on the short-term intercompany loans. The following table summarizes the location and fair value, using Level 2 inputs, of the Company's derivatives designated and not designated as hedging instruments in the Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location December 30, 2016 September 30, 2016 ASSETS Not designated as hedging instruments: Gasoline and diesel fuel agreements Prepayments and other current assets $ 8,152 $ 3,878 8,152 3,878 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accrued expenses and other current liabilities $ 4,489 $ 5,929 Interest rate swap agreements Other Noncurrent Liabilities 18,585 34,919 23,074 40,848 Not designated as hedging instruments: Foreign currency forward exchange contracts Accounts payable 1,066 447 $ 24,140 $ 41,295 The following table summarizes the location of (gain) loss reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments and the location of (gain) loss for the Company's derivatives not designated as hedging instruments in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Income Statement Location December 30, 2016 January 1, 2016 Designated as hedging instruments: Interest rate swap agreements Interest expense $ 5,973 $ 9,017 Cross currency swap agreements Interest expense — 2,061 5,973 11,078 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided $ (4,684 ) $ 2,505 Foreign currency forward exchange contracts Interest expense (7,404 ) 5,090 (12,088 ) 7,595 $ (6,115 ) $ 18,673 At December 30, 2016 , the net of tax loss expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months based on current market rates is approximately $8.8 million . |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY: During the three months ended December 30, 2016 and January 1, 2016 , the Company paid dividends of approximately $25.2 million and $22.9 million to its stockholders, respectively. On February 1, 2017, the Company's Board declared a $0.103 dividend per share of common stock, payable on March 1, 2017, to shareholders of record on the close of business on February 15, 2017. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Dec. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION: The following table summarizes the share-based compensation expense and related information for Time-Based Options ("TBOs"), Time-Based Restricted Stock Units ("RSUs"), Performance Stock Units and Performance Restricted Stock ("PSUs"), and Deferred Stock and Other Units classified as "Selling and general corporate expenses" in the Condensed Consolidated Statements of Income (in millions). Three Months Ended December 30, 2016 January 1, 2016 TBOs $ 5.3 $ 4.9 RSUs 6.4 5.7 PSUs 3.6 4.0 Deferred Stock and Other Units 0.9 0.7 $ 16.2 $ 15.3 Taxes related to share-based compensation $ 6.0 $ 6.0 The below table summarizes the number of shares granted and the weighted-average grant-date fair value per unit during the three months ended December 30, 2016 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 2.6 $ 8.46 RSUs 1.4 $ 34.08 PSUs 0.4 $ 34.08 4.4 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE: Basic earnings per share is computed using the weighted average number of common shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of share-based awards. The following table sets forth the computation of basic and diluted earnings per share attributable to the Company's stockholders (in thousands, except per share data): Three Months Ended December 30, 2016 January 1, 2016 Earnings: Net income attributable to Aramark stockholders $ 125,339 $ 93,343 Shares: Basic weighted-average shares outstanding 244,758 240,521 Effect of dilutive securities 7,835 7,092 Diluted weighted-average shares outstanding 252,593 247,613 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 0.51 $ 0.39 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 0.50 $ 0.38 Share-based awards to purchase 3.3 million and 3.8 million shares were outstanding for the three months ended December 30, 2016 and January 1, 2016 , respectively, but were not included in the computation of diluted earnings per common share, as their effect would have been antidilutive. In addition, PSUs related to 1.1 million shares and 0.7 million shares were outstanding for the three month periods of December 30, 2016 and January 1, 2016 , respectively, but were not included in the computation of diluted earnings per common share, as the performance targets were not yet met. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES: Certain of the Company's lease arrangements, primarily vehicle leases, with terms of one to eight years, contain provisions related to residual value guarantees. The maximum potential liability to the Company under such arrangements was approximately $110.6 million at December 30, 2016 if the terminal fair value of vehicles coming off lease was zero . Consistent with past experience, management does not expect any significant payments will be required pursuant to these arrangements. No amounts have been accrued for guarantee arrangements at December 30, 2016 . From time to time, the Company and its subsidiaries are a party to various legal actions, proceedings and investigations involving claims incidental to the conduct of their business, including actions by clients, consumers, employees, government entities and third parties, including under federal, state, international, national, provincial and local employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, import and export controls and customs laws, environmental laws, false claims or whistleblower statutes, minority, women and disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, consumer protection statutes, procurement regulations, intellectual property laws, food safety and sanitation laws, cost and accounting principles, the Foreign Corrupt Practices Act, the U.K. Bribery Act, other anti-corruption laws, lobbying laws, motor carrier safety laws, data privacy and security laws and alcohol licensing and service laws, or alleging negligence and/or breaches of contractual and other obligations. Based on information currently available, advice of counsel, available insurance coverage, established reserves and other resources, the Company does not believe that any such actions are likely to be, individually or in the aggregate, material to its business, financial condition, results of operations or cash flows. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to the Company's business, financial condition, results of operations or cash flows. |
Business Segments
Business Segments | 3 Months Ended |
Dec. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS: The Company reports its operating results in three reportable segments: FSS North America, FSS International and Uniform. Corporate includes general expenses not specifically allocated to an individual segment and share-based compensation expense (see note 7). In the Company's two food and support services segments, approximately 80% of the global sales is related to food services and 20% is related to facilities services. Financial information by segment follows (in millions): Sales Three Months Ended December 30, 2016 January 1, 2016 FSS North America $ 2,662.8 $ 2,622.7 FSS International 677.1 694.9 Uniform 395.5 392.7 $ 3,735.4 $ 3,710.3 Operating Income Three Months Ended December 30, 2016 January 1, 2016 FSS North America $ 185.2 $ 168.3 FSS International 31.7 30.1 Uniform 53.8 50.3 270.7 248.7 Corporate (26.6 ) (34.6 ) Operating Income 244.1 214.1 Interest and Other Financing Costs, net (65.7 ) (71.3 ) Income Before Income Taxes $ 178.4 $ 142.8 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Financial Liabilities | 3 Months Ended |
Dec. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Financial Liabilities | FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are classified based upon the level of judgment associated with the inputs used to measure their fair value. The hierarchical levels related to the subjectivity of the valuation inputs are defined as follows: • Level 1—inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets • Level 2—inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument • Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement Recurring Fair Value Measurements The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, borrowings and derivatives. Management believes that the carrying value of cash and cash equivalents, accounts receivable and accounts payable are representative of their respective fair values. In conjunction with the fair value measurement of the derivative instruments, the Company made an accounting policy election to measure the credit risk of its derivative instruments that are subject to master netting agreements on a net basis by counterparty portfolio. The fair value of the Company's debt at December 30, 2016 and September 30, 2016 was $5,486.9 million and $5,365.6 million , respectively. The carrying value of the Company's debt at December 30, 2016 and September 30, 2016 was $5,412.5 million and $5,270.0 million , respectively. The fair values were computed using market quotes, if available, or based on discounted cash flows using market interest rates as of the end of the respective periods. The inputs utilized in estimating the fair value of the Company's debt has been classified as level 2 in the fair value hierarchy levels. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements of Aramark and Subsidiaries | 3 Months Ended |
Dec. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
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 5.75% Senior Notes due March 15, 2020 ("2020 Notes"), 5.125% Senior Notes due January 15, 2024 ("2024 Notes") and 4.75% Senior Notes due June 1, 2026 ("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 December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 27,484 $ 28,984 $ 90,478 $ — $ 146,951 Receivables — 150 321,995 1,170,146 — 1,492,291 Inventories — 14,673 475,353 73,909 — 563,935 Prepayments and other current assets — 3,848 66,505 100,065 — 170,418 Total current assets 5 46,155 892,837 1,434,598 — 2,373,595 Property and Equipment, net — 29,688 762,707 205,167 — 997,562 Goodwill — 173,104 3,982,737 452,446 — 4,608,287 Investment in and Advances to Subsidiaries 2,238,637 5,565,845 740,647 230,145 (8,775,274 ) — Other Intangible Assets — 29,729 875,692 178,858 — 1,084,279 Other Assets — 61,309 1,048,300 212,594 (2,002 ) 1,320,201 $ 2,238,642 $ 5,905,830 $ 8,302,920 $ 2,713,808 $ (8,777,276 ) $ 10,383,924 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 21,931 $ 15,951 $ 9,721 $ — $ 47,603 Accounts payable — 156,316 304,823 242,739 — 703,878 Accrued expenses and other current liabilities 100 148,265 599,976 297,805 (18,378 ) 1,027,768 Total current liabilities 100 326,512 920,750 550,265 (18,378 ) 1,779,249 Long-term Borrowings — 4,601,287 58,223 705,345 — 5,364,855 Deferred Income Taxes and Other Noncurrent Liabilities — 434,320 492,365 64,768 — 991,453 Intercompany Payable — — 5,251,307 869,183 (6,120,490 ) — Redeemable Noncontrolling Interest — — 9,825 — — 9,825 Total Stockholders' Equity 2,238,542 543,711 1,570,450 524,247 (2,638,408 ) 2,238,542 $ 2,238,642 $ 5,905,830 $ 8,302,920 $ 2,713,808 $ (8,777,276 ) $ 10,383,924 CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 47,850 $ 31,344 $ 73,381 $ — $ 152,580 Receivables — 167 265,124 1,211,058 — 1,476,349 Inventories — 15,284 492,855 79,016 — 587,155 Prepayments and other current assets — 69,033 98,779 108,675 — 276,487 Total current assets 5 132,334 888,102 1,472,130 — 2,492,571 Property and Equipment, net — 30,201 782,347 210,535 — 1,023,083 Goodwill — 173,104 3,982,737 473,040 — 4,628,881 Investment in and Advances to Subsidiaries 2,161,101 5,450,692 598,759 230,488 (8,441,040 ) — Other Intangible Assets — 29,729 894,274 187,880 — 1,111,883 Other Assets — 56,850 1,028,887 241,919 (2,002 ) 1,325,654 $ 2,161,106 $ 5,872,910 $ 8,175,106 $ 2,815,992 $ (8,443,042 ) $ 10,582,072 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 21,998 $ 15,598 $ 8,926 $ — $ 46,522 Accounts payable — 156,471 415,481 275,636 — 847,588 Accrued expenses and other current liabilities 100 145,314 827,213 319,447 (1,439 ) 1,290,635 Total current liabilities 100 323,783 1,258,292 604,009 (1,439 ) 2,184,745 Long-term Borrowings — 4,570,931 62,892 589,691 — 5,223,514 Deferred Income Taxes and Other Noncurrent Liabilities — 440,839 510,254 51,920 — 1,003,013 Intercompany Payable — — 4,619,489 1,400,741 (6,020,230 ) — Redeemable Noncontrolling Interest — — 9,794 — — 9,794 Total Stockholders' Equity 2,161,006 537,357 1,714,385 169,631 (2,421,373 ) 2,161,006 $ 2,161,106 $ 5,872,910 $ 8,175,106 $ 2,815,992 $ (8,443,042 ) $ 10,582,072 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 252,379 $ 2,528,456 $ 954,548 $ — $ 3,735,383 Costs and Expenses: Cost of services provided — 228,812 2,197,649 872,868 — 3,299,329 Depreciation and amortization — 4,381 102,183 19,963 — 126,527 Selling and general corporate expenses — 28,367 32,481 4,624 — 65,472 Interest and other financing costs, net — 61,353 (632 ) 4,956 — 65,677 Expense allocations (76,019 ) 73,872 2,147 — — — 246,894 2,405,553 904,558 — 3,557,005 Income before Income Taxes — 5,485 122,903 49,990 — 178,378 Provision for Income Taxes — 1,477 36,316 15,150 — 52,943 Equity in Net Income of Subsidiaries 125,339 — — — (125,339 ) — Net income 125,339 4,008 86,587 34,840 (125,339 ) 125,435 Less: Net income attributable to noncontrolling interest — — 96 — — 96 Net income attributable to Aramark stockholders 125,339 4,008 86,491 34,840 (125,339 ) 125,339 Other comprehensive income (loss), net of tax (24,682 ) 25,467 (1,927 ) (68,348 ) 44,808 (24,682 ) Comprehensive income (loss) attributable to Aramark stockholders $ 100,657 $ 29,475 $ 84,564 $ (33,508 ) $ (80,531 ) $ 100,657 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended January 1, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 256,743 $ 2,517,067 $ 936,465 $ — $ 3,710,275 Costs and Expenses: Cost of services provided — 234,974 2,199,744 859,805 — 3,294,523 Depreciation and amortization — 3,463 106,277 17,778 — 127,518 Selling and general corporate expenses — 36,846 32,493 4,802 — 74,141 Interest and other financing costs — 63,583 (449 ) 8,186 — 71,320 Expense allocations (94,050 ) 97,551 (3,501 ) — — — 244,816 2,435,616 887,070 — 3,567,502 Income before Income Taxes — 11,927 81,451 49,395 — 142,773 Provision for Income Taxes — 4,829 26,774 17,734 — 49,337 Equity in Net Income of Subsidiaries 93,343 — — — (93,343 ) — Net income 93,343 7,098 54,677 31,661 (93,343 ) 93,436 Less: Net income attributable to noncontrolling interest — — 93 — — 93 Net income attributable to Aramark stockholders 93,343 7,098 54,584 31,661 (93,343 ) 93,343 Other comprehensive income (loss), net of tax 5,002 9,885 (1,562 ) (13,965 ) 5,642 5,002 Comprehensive income attributable to Aramark stockholders $ 98,345 $ 16,983 $ 53,022 $ 17,696 $ (87,701 ) $ 98,345 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 102,805 $ (168,396 ) $ 40,175 $ (610 ) $ (26,026 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (4,921 ) (88,327 ) (13,352 ) — (106,600 ) Disposals of property and equipment — 49 546 754 — 1,349 Acquisitions of businesses, net of cash acquired — — — (1,045 ) — (1,045 ) Other investing activities — (1,836 ) (3,083 ) 5,085 — 166 Net cash used in investing activities — (6,708 ) (90,864 ) (8,558 ) — (106,130 ) Cash flows from financing activities: Proceeds from long-term borrowings — 40,900 — 5,087 — 45,987 Payments of long-term borrowings — (5,484 ) (4,591 ) (3,534 ) — (13,609 ) Net change in funding under the Receivables Facility — — — 132,000 — 132,000 Payments of dividends — (25,246 ) — — — (25,246 ) Proceeds from issuance of common stock — 3,121 — — — 3,121 Other financing activities — (15,300 ) (361 ) (65 ) — (15,726 ) Change in intercompany, net — (114,454 ) 261,852 (148,008 ) 610 — Net cash provided by (used in) financing activities — (116,463 ) 256,900 (14,520 ) 610 126,527 Increase (decrease) in cash and cash equivalents — (20,366 ) (2,360 ) 17,097 — (5,629 ) Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 27,484 $ 28,984 $ 90,478 $ — $ 146,951 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended January 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ 64 $ 3,763 $ (162,469 ) $ (67,731 ) $ 57,380 $ (168,993 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (4,038 ) (72,101 ) (15,360 ) — (91,499 ) Disposals of property and equipment — — 2,017 — — 2,017 Acquisitions of businesses, net of cash acquired — — (231 ) — — (231 ) Other investing activities — 493 4,824 (1,738 ) — 3,579 Net cash used in investing activities — (3,545 ) (65,491 ) (17,098 ) — (86,134 ) Cash flows from financing activities: Proceeds from long-term borrowings — 393,969 — 37,767 — 431,736 Payments of long-term borrowings — (67,480 ) (2,818 ) (102,224 ) — (172,522 ) Net change in funding under the Receivables Facility — — — 25,000 — 25,000 Payments of dividends — (22,853 ) — — — (22,853 ) Proceeds from issuance of common stock — 7,512 — — — 7,512 Other financing activities — (20,000 ) (589 ) (215 ) — (20,804 ) Change in intercompany, net (64 ) (298,081 ) 221,711 133,814 (57,380 ) — Net cash provided by (used in) financing activities (64 ) (6,933 ) 218,304 94,142 (57,380 ) 248,069 Increase (decrease) in cash and cash equivalents — (6,715 ) (9,656 ) 9,313 — (7,058 ) Cash and cash equivalents, beginning of period 5 31,792 42,811 47,808 — 122,416 Cash and cash equivalents, end of period $ 5 $ 25,077 $ 33,155 $ 57,121 $ — $ 115,358 |
Basis of Presentation and Sum19
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited consolidated financial statements, and the notes to those statements, included in the Company's Form 10-K filed with the SEC on November 23, 2016 . The Condensed Consolidated Balance Sheet as of September 30, 2016 was derived from audited financial statements which have been prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. In the opinion of the Company, the statements include all adjustments, which are of a normal, recurring nature, required for a fair presentation for the periods presented. The results of operations for interim periods are not necessarily indicative of the results for a full year, due to the seasonality of some of the Company's business activities and the possibility of changes in general economic conditions. |
New Accounting Standard Updates | New Accounting Standard Updates In January 2017, the Financial Accounting Standards Board ("FASB") issued an accounting standard update ("ASU") to simplify the subsequent measurement of goodwill as part of the impairment test. The guidance is effective for the Company in the first quarter of fiscal 2021 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In January 2017, the FASB issued an ASU to clarify the definition of a business. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In October 2016, the FASB issued an ASU to require entities to recognize the income tax consequences of certain intercompany assets transfers at the transaction date. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In August 2016, the FASB issued an ASU to address the classification of certain cash receipts and cash payments in the Statement of Cash Flows. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In March 2016, the FASB issued an ASU to update several aspects of the accounting for share-based payment transactions. Upon adoption, the ASU requires that excess tax benefits for share-based payments be recorded as a reduction to the provision for income taxes and reflected within cash flows from operating activities rather than being recorded within stockholders’ equity and reflected within cash flow from financing activities. The standard also clarifies that all cash payments made on an employee’s behalf for withheld shares should be presented as a financing activity on a cash flow statement, and provides an accounting policy election to account for forfeitures as they occur. The guidance is effective for the Company in the first quarter of fiscal 2018 and early adoption is permitted. The Company elected to early adopt the guidance as of the beginning of its first quarter of fiscal 2017. The impact to the Condensed Consolidated Statements of Income for the three months ended December 30, 2016 was $6.3 million of excess tax benefit recorded as a reduction to the provision for income taxes. The adoption impact to the Condensed Consolidated Balance Sheets was a cumulative-effect adjustment of approximately $9.8 million to increase retained earnings for previously unrecognized excess tax benefits. The Company applied the guidance related to the presentation in the Condensed Consolidated Statements of Cash Flows on a retrospective basis. The excess tax benefit of $6.3 million and $6.4 million f or share-based awards is included in operating activities, previously classified in financing activities, and approximately $15.3 million and $19.9 million of cash paid for employee taxes for withheld shares is included in financing activities, previously classified in operating activities, for the three months ended December 30, 2016 and January 1, 2016, respectively. As a result of the adoption, the excess tax benefit is no longer included in the calculation of diluted shares under the treasury stock method, which increased the diluted shares outstanding by approximately 2.0 million shares. The Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period. In February 2016, the FASB issued an ASU requiring lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use assets and to disclose key information about lease arrangements. The guidance is effective for the Company in the first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In July 2015, the FASB issued an ASU which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. The guidance is effective for the Company in the first quarter of fiscal 2018 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In June 2014, the FASB issued an ASU on stock compensation which requires that a performance target affecting vesting and that could be achieved after the requisite service period be treated as a performance condition. The Company adopted the guidance in the first quarter of fiscal 2017 which did not have an impact on the condensed consolidated financial statements. In May 2014, the FASB issued an ASU on revenue from contracts with customers which outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance. In July 2015, the FASB voted to defer the effective date of the new revenue standard by one year, but to permit entities to adopt one year earlier if they choose (i.e., the original effective date). The guidance is effective for the Company beginning in the first quarter of fiscal 2019. As the new standard will supersede most existing revenue guidance affecting the Company, it could impact revenue and cost recognition on contracts across all reportable segments. The Company has been closely monitoring the FASB activity related to the new standard and continues to work to conclude on specific interpretative issues. The Company also continues to make progress on a comprehensive contract review project in order to develop a full understanding of the adoption impact on the consolidated financial statements. |
Comprehensive Income | Comprehensive Income Comprehensive income includes all changes to stockholders' equity during a period, except those resulting from investments by and distributions to stockholders. Components of comprehensive income include net income, changes in foreign currency translation adjustments (net of tax), pension plan adjustments (net of tax), changes in the fair value of cash flow hedges (net of tax) and changes to the share of any equity investees' comprehensive income (net of tax). |
Other Assets | Other Assets Other assets consist primarily of client contract investments, investments in 50% or less owned entities, computer software costs and long-term receivables. Client contract investments generally represent a cash payment provided by the Company to help finance improvement or renovation at the facility from which the Company operates. These amounts are amortized over the contract period. If a contract is terminated prior to its maturity date, the Company is generally reimbursed for the unamortized client contract investment amount. Client contract investments, net of accumulated amortization, were $877.6 million and $865.0 million as of December 30, 2016 and September 30, 2016, respectively. |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are classified based upon the level of judgment associated with the inputs used to measure their fair value. The hierarchical levels related to the subjectivity of the valuation inputs are defined as follows: • Level 1—inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets • Level 2—inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument • Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement Recurring Fair Value Measurements The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, borrowings and derivatives. Management believes that the carrying value of cash and cash equivalents, accounts receivable and accounts payable are representative of their respective fair values. In conjunction with the fair value measurement of the derivative instruments, the Company made an accounting policy election to measure the credit risk of its derivative instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
Income Taxes | Income Taxes Effective for the first quarter of fiscal 2017, the earnings since the beginning of the fiscal year of certain of the Company's foreign subsidiaries are intended to be indefinitely reinvested in operations outside the U.S. and, therefore, U.S. taxes have not been recorded on those earnings. |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Comprehensive Income (Loss) | The summary of the components of comprehensive income (loss) is as follows (in thousands): Three Months Ended December 30, 2016 January 1, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 125,435 $ 93,436 Foreign currency translation adjustments (43,648 ) 8,768 (34,880 ) (10,563 ) (9 ) (10,572 ) Fair value of cash flow hedges 16,718 (6,520 ) 10,198 16,079 (505 ) 15,574 Other comprehensive income (loss) (26,930 ) 2,248 (24,682 ) 5,516 (514 ) 5,002 Comprehensive income 100,753 98,438 Less: Net income attributable to noncontrolling interest 96 93 Comprehensive income attributable to Aramark stockholders $ 100,657 $ 98,345 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive loss consists of the following (in thousands): December 30, 2016 September 30, 2016 Pension plan adjustments $ (65,267 ) $ (65,267 ) Foreign currency translation adjustments (103,341 ) (68,461 ) Cash flow hedges (26,175 ) (36,373 ) Share of equity investee's accumulated other comprehensive loss (10,682 ) (10,682 ) $ (205,465 ) $ (180,783 ) |
Goodwill and Other Intangible21
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Assets by Segment | Changes in total goodwill during the three months ended December 30, 2016 follow (in thousands): Segment September 30, 2016 Acquisition Translation December 30, 2016 FSS North America $ 3,635,614 $ 220 $ (42 ) $ 3,635,792 FSS International 418,488 — (20,772 ) 397,716 Uniform 574,779 — — 574,779 $ 4,628,881 $ 220 $ (20,814 ) $ 4,608,287 |
Schedule of Other Intangible Assets | Other intangible assets consist of the following (in thousands): December 30, 2016 September 30, 2016 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,298,148 $ (989,651 ) $ 308,497 $ 1,793,739 $ (1,462,058 ) $ 331,681 Trade names 777,415 (1,633 ) 775,782 781,835 (1,633 ) 780,202 $ 2,075,563 $ (991,284 ) $ 1,084,279 $ 2,575,574 $ (1,463,691 ) $ 1,111,883 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The following table summarizes the effect of our derivatives designated as cash flow hedging instruments (effective portion) on Other comprehensive income (loss) (in thousands): Three Months Ended December 30, 2016 January 1, 2016 Interest rate swap agreements $ 10,745 $ 7,117 Cross currency swap agreements — (2,116 ) $ 10,745 $ 5,001 |
Schedule of Derivative Instruments, Balance Sheet Presentation | The following table summarizes the location and fair value, using Level 2 inputs, of the Company's derivatives designated and not designated as hedging instruments in the Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location December 30, 2016 September 30, 2016 ASSETS Not designated as hedging instruments: Gasoline and diesel fuel agreements Prepayments and other current assets $ 8,152 $ 3,878 8,152 3,878 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accrued expenses and other current liabilities $ 4,489 $ 5,929 Interest rate swap agreements Other Noncurrent Liabilities 18,585 34,919 23,074 40,848 Not designated as hedging instruments: Foreign currency forward exchange contracts Accounts payable 1,066 447 $ 24,140 $ 41,295 |
Schedule Summarizes the Location of (Gain) Loss Reclassified from AOCI Into Earnings for Derivatives Designated as Hedging Instruments and the Location of (Gain) Loss | The following table summarizes the location of (gain) loss reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments and the location of (gain) loss for the Company's derivatives not designated as hedging instruments in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Income Statement Location December 30, 2016 January 1, 2016 Designated as hedging instruments: Interest rate swap agreements Interest expense $ 5,973 $ 9,017 Cross currency swap agreements Interest expense — 2,061 5,973 11,078 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided $ (4,684 ) $ 2,505 Foreign currency forward exchange contracts Interest expense (7,404 ) 5,090 (12,088 ) 7,595 $ (6,115 ) $ 18,673 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes the share-based compensation expense and related information for Time-Based Options ("TBOs"), Time-Based Restricted Stock Units ("RSUs"), Performance Stock Units and Performance Restricted Stock ("PSUs"), and Deferred Stock and Other Units classified as "Selling and general corporate expenses" in the Condensed Consolidated Statements of Income (in millions). Three Months Ended December 30, 2016 January 1, 2016 TBOs $ 5.3 $ 4.9 RSUs 6.4 5.7 PSUs 3.6 4.0 Deferred Stock and Other Units 0.9 0.7 $ 16.2 $ 15.3 Taxes related to share-based compensation $ 6.0 $ 6.0 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The below table summarizes the number of shares granted and the weighted-average grant-date fair value per unit during the three months ended December 30, 2016 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 2.6 $ 8.46 RSUs 1.4 $ 34.08 PSUs 0.4 $ 34.08 4.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share attributable to the Company's stockholders (in thousands, except per share data): Three Months Ended December 30, 2016 January 1, 2016 Earnings: Net income attributable to Aramark stockholders $ 125,339 $ 93,343 Shares: Basic weighted-average shares outstanding 244,758 240,521 Effect of dilutive securities 7,835 7,092 Diluted weighted-average shares outstanding 252,593 247,613 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 0.51 $ 0.39 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 0.50 $ 0.38 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Segment | Financial information by segment follows (in millions): Sales Three Months Ended December 30, 2016 January 1, 2016 FSS North America $ 2,662.8 $ 2,622.7 FSS International 677.1 694.9 Uniform 395.5 392.7 $ 3,735.4 $ 3,710.3 |
Schedule of Operating Income by Segment | Operating Income Three Months Ended December 30, 2016 January 1, 2016 FSS North America $ 185.2 $ 168.3 FSS International 31.7 30.1 Uniform 53.8 50.3 270.7 248.7 Corporate (26.6 ) (34.6 ) Operating Income 244.1 214.1 Interest and Other Financing Costs, net (65.7 ) (71.3 ) Income Before Income Taxes $ 178.4 $ 142.8 |
Condensed Consolidating Finan26
Condensed Consolidating Financial Statements of Aramark and Subsidiaries (Tables) | 3 Months Ended |
Dec. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Consolidated Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEETS December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 27,484 $ 28,984 $ 90,478 $ — $ 146,951 Receivables — 150 321,995 1,170,146 — 1,492,291 Inventories — 14,673 475,353 73,909 — 563,935 Prepayments and other current assets — 3,848 66,505 100,065 — 170,418 Total current assets 5 46,155 892,837 1,434,598 — 2,373,595 Property and Equipment, net — 29,688 762,707 205,167 — 997,562 Goodwill — 173,104 3,982,737 452,446 — 4,608,287 Investment in and Advances to Subsidiaries 2,238,637 5,565,845 740,647 230,145 (8,775,274 ) — Other Intangible Assets — 29,729 875,692 178,858 — 1,084,279 Other Assets — 61,309 1,048,300 212,594 (2,002 ) 1,320,201 $ 2,238,642 $ 5,905,830 $ 8,302,920 $ 2,713,808 $ (8,777,276 ) $ 10,383,924 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 21,931 $ 15,951 $ 9,721 $ — $ 47,603 Accounts payable — 156,316 304,823 242,739 — 703,878 Accrued expenses and other current liabilities 100 148,265 599,976 297,805 (18,378 ) 1,027,768 Total current liabilities 100 326,512 920,750 550,265 (18,378 ) 1,779,249 Long-term Borrowings — 4,601,287 58,223 705,345 — 5,364,855 Deferred Income Taxes and Other Noncurrent Liabilities — 434,320 492,365 64,768 — 991,453 Intercompany Payable — — 5,251,307 869,183 (6,120,490 ) — Redeemable Noncontrolling Interest — — 9,825 — — 9,825 Total Stockholders' Equity 2,238,542 543,711 1,570,450 524,247 (2,638,408 ) 2,238,542 $ 2,238,642 $ 5,905,830 $ 8,302,920 $ 2,713,808 $ (8,777,276 ) $ 10,383,924 CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 47,850 $ 31,344 $ 73,381 $ — $ 152,580 Receivables — 167 265,124 1,211,058 — 1,476,349 Inventories — 15,284 492,855 79,016 — 587,155 Prepayments and other current assets — 69,033 98,779 108,675 — 276,487 Total current assets 5 132,334 888,102 1,472,130 — 2,492,571 Property and Equipment, net — 30,201 782,347 210,535 — 1,023,083 Goodwill — 173,104 3,982,737 473,040 — 4,628,881 Investment in and Advances to Subsidiaries 2,161,101 5,450,692 598,759 230,488 (8,441,040 ) — Other Intangible Assets — 29,729 894,274 187,880 — 1,111,883 Other Assets — 56,850 1,028,887 241,919 (2,002 ) 1,325,654 $ 2,161,106 $ 5,872,910 $ 8,175,106 $ 2,815,992 $ (8,443,042 ) $ 10,582,072 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 21,998 $ 15,598 $ 8,926 $ — $ 46,522 Accounts payable — 156,471 415,481 275,636 — 847,588 Accrued expenses and other current liabilities 100 145,314 827,213 319,447 (1,439 ) 1,290,635 Total current liabilities 100 323,783 1,258,292 604,009 (1,439 ) 2,184,745 Long-term Borrowings — 4,570,931 62,892 589,691 — 5,223,514 Deferred Income Taxes and Other Noncurrent Liabilities — 440,839 510,254 51,920 — 1,003,013 Intercompany Payable — — 4,619,489 1,400,741 (6,020,230 ) — Redeemable Noncontrolling Interest — — 9,794 — — 9,794 Total Stockholders' Equity 2,161,006 537,357 1,714,385 169,631 (2,421,373 ) 2,161,006 $ 2,161,106 $ 5,872,910 $ 8,175,106 $ 2,815,992 $ (8,443,042 ) $ 10,582,072 |
Schedule of Condensed Consolidated Income Statement | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 252,379 $ 2,528,456 $ 954,548 $ — $ 3,735,383 Costs and Expenses: Cost of services provided — 228,812 2,197,649 872,868 — 3,299,329 Depreciation and amortization — 4,381 102,183 19,963 — 126,527 Selling and general corporate expenses — 28,367 32,481 4,624 — 65,472 Interest and other financing costs, net — 61,353 (632 ) 4,956 — 65,677 Expense allocations (76,019 ) 73,872 2,147 — — — 246,894 2,405,553 904,558 — 3,557,005 Income before Income Taxes — 5,485 122,903 49,990 — 178,378 Provision for Income Taxes — 1,477 36,316 15,150 — 52,943 Equity in Net Income of Subsidiaries 125,339 — — — (125,339 ) — Net income 125,339 4,008 86,587 34,840 (125,339 ) 125,435 Less: Net income attributable to noncontrolling interest — — 96 — — 96 Net income attributable to Aramark stockholders 125,339 4,008 86,491 34,840 (125,339 ) 125,339 Other comprehensive income (loss), net of tax (24,682 ) 25,467 (1,927 ) (68,348 ) 44,808 (24,682 ) Comprehensive income (loss) attributable to Aramark stockholders $ 100,657 $ 29,475 $ 84,564 $ (33,508 ) $ (80,531 ) $ 100,657 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended January 1, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Sales $ — $ 256,743 $ 2,517,067 $ 936,465 $ — $ 3,710,275 Costs and Expenses: Cost of services provided — 234,974 2,199,744 859,805 — 3,294,523 Depreciation and amortization — 3,463 106,277 17,778 — 127,518 Selling and general corporate expenses — 36,846 32,493 4,802 — 74,141 Interest and other financing costs — 63,583 (449 ) 8,186 — 71,320 Expense allocations (94,050 ) 97,551 (3,501 ) — — — 244,816 2,435,616 887,070 — 3,567,502 Income before Income Taxes — 11,927 81,451 49,395 — 142,773 Provision for Income Taxes — 4,829 26,774 17,734 — 49,337 Equity in Net Income of Subsidiaries 93,343 — — — (93,343 ) — Net income 93,343 7,098 54,677 31,661 (93,343 ) 93,436 Less: Net income attributable to noncontrolling interest — — 93 — — 93 Net income attributable to Aramark stockholders 93,343 7,098 54,584 31,661 (93,343 ) 93,343 Other comprehensive income (loss), net of tax 5,002 9,885 (1,562 ) (13,965 ) 5,642 5,002 Comprehensive income attributable to Aramark stockholders $ 98,345 $ 16,983 $ 53,022 $ 17,696 $ (87,701 ) $ 98,345 |
Schedule of Condensed Consolidated Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 102,805 $ (168,396 ) $ 40,175 $ (610 ) $ (26,026 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (4,921 ) (88,327 ) (13,352 ) — (106,600 ) Disposals of property and equipment — 49 546 754 — 1,349 Acquisitions of businesses, net of cash acquired — — — (1,045 ) — (1,045 ) Other investing activities — (1,836 ) (3,083 ) 5,085 — 166 Net cash used in investing activities — (6,708 ) (90,864 ) (8,558 ) — (106,130 ) Cash flows from financing activities: Proceeds from long-term borrowings — 40,900 — 5,087 — 45,987 Payments of long-term borrowings — (5,484 ) (4,591 ) (3,534 ) — (13,609 ) Net change in funding under the Receivables Facility — — — 132,000 — 132,000 Payments of dividends — (25,246 ) — — — (25,246 ) Proceeds from issuance of common stock — 3,121 — — — 3,121 Other financing activities — (15,300 ) (361 ) (65 ) — (15,726 ) Change in intercompany, net — (114,454 ) 261,852 (148,008 ) 610 — Net cash provided by (used in) financing activities — (116,463 ) 256,900 (14,520 ) 610 126,527 Increase (decrease) in cash and cash equivalents — (20,366 ) (2,360 ) 17,097 — (5,629 ) Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 27,484 $ 28,984 $ 90,478 $ — $ 146,951 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended January 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. (Issuer) Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ 64 $ 3,763 $ (162,469 ) $ (67,731 ) $ 57,380 $ (168,993 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (4,038 ) (72,101 ) (15,360 ) — (91,499 ) Disposals of property and equipment — — 2,017 — — 2,017 Acquisitions of businesses, net of cash acquired — — (231 ) — — (231 ) Other investing activities — 493 4,824 (1,738 ) — 3,579 Net cash used in investing activities — (3,545 ) (65,491 ) (17,098 ) — (86,134 ) Cash flows from financing activities: Proceeds from long-term borrowings — 393,969 — 37,767 — 431,736 Payments of long-term borrowings — (67,480 ) (2,818 ) (102,224 ) — (172,522 ) Net change in funding under the Receivables Facility — — — 25,000 — 25,000 Payments of dividends — (22,853 ) — — — (22,853 ) Proceeds from issuance of common stock — 7,512 — — — 7,512 Other financing activities — (20,000 ) (589 ) (215 ) — (20,804 ) Change in intercompany, net (64 ) (298,081 ) 221,711 133,814 (57,380 ) — Net cash provided by (used in) financing activities (64 ) (6,933 ) 218,304 94,142 (57,380 ) 248,069 Increase (decrease) in cash and cash equivalents — (6,715 ) (9,656 ) 9,313 — (7,058 ) Cash and cash equivalents, beginning of period 5 31,792 42,811 47,808 — 122,416 Cash and cash equivalents, end of period $ 5 $ 25,077 $ 33,155 $ 57,121 $ — $ 115,358 |
Basis of Presentation and Sum27
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands, shares in Millions | 3 Months Ended | |
Dec. 30, 2016USD ($)countrysegmentshares | Jan. 01, 2016USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||
Net cash provided by (used in) operating activities | $ (26,026) | $ (168,993) |
Net cash provided by (used in) financing activities | $ 126,527 | 248,069 |
Number of reportable segments | segment | 3 | |
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||
Effective income tax rate reconciliation, share-based compensation, excess tax benefit, amount | $ 6,300 | |
Net cash provided by (used in) operating activities | 6,300 | 6,400 |
Net cash provided by (used in) financing activities | $ (15,300) | $ (19,900) |
Adjustment to diluted shares outstanding | shares | 2 | |
Retained Earnings | Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||
Cumulative effect of new accounting principal in period of adoption | $ 9,800 | |
Foreign Countries Outside North America | ||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||
Number of foreign countries in which entity operates | country | 17 |
Basis of Presentation and Sum28
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Pre-Tax Amount | ||
Foreign currency translation adjustments | $ (43,648) | $ (10,563) |
Fair value of cash flow hedges | 16,718 | 16,079 |
Other comprehensive income (loss) | (26,930) | 5,516 |
Tax Effect | ||
Foreign currency translation adjustments | 8,768 | (9) |
Fair value of cash flow hedges | (6,520) | (505) |
Other comprehensive income (loss) | 2,248 | (514) |
After-Tax Amount | ||
Net income | 125,435 | 93,436 |
Foreign currency translation adjustments | (34,880) | (10,572) |
Fair value of cash flow hedges | 10,198 | 15,574 |
Other comprehensive income (loss), net of tax | (24,682) | 5,002 |
Comprehensive income | 100,753 | 98,438 |
Less: Net income attributable to noncontrolling interest | 96 | 93 |
Comprehensive income attributable to Aramark stockholders | $ 100,657 | $ 98,345 |
Basis of Presentation and Sum29
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Pension plan adjustments | $ (65,267) | $ (65,267) |
Foreign currency translation adjustments | (103,341) | (68,461) |
Cash flow hedges | (26,175) | (36,373) |
Share of equity investee's accumulated other comprehensive loss | (10,682) | (10,682) |
Total | $ (205,465) | $ (180,783) |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting Policies - Other Assets (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capital contract investments | $ 877.6 | $ 865 |
Severance (Details)
Severance (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
Restructuring and Related Activities [Abstract] | ||
Severance and related costs accrual | $ 20.3 | $ 26.1 |
Goodwill and Other Intangible32
Goodwill and Other Intangible Assets - Schedule of Goodwill Assets by Segment (Details) $ in Thousands | 3 Months Ended |
Dec. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | $ 4,628,881 |
Acquisition | 220 |
Translation | (20,814) |
Balance at the end of the period | 4,608,287 |
FSS North America | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 3,635,614 |
Acquisition | 220 |
Translation | (42) |
Balance at the end of the period | 3,635,792 |
FSS International | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 418,488 |
Acquisition | 0 |
Translation | (20,772) |
Balance at the end of the period | 397,716 |
Uniform | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 574,779 |
Acquisition | 0 |
Translation | 0 |
Balance at the end of the period | $ 574,779 |
Goodwill and Other Intangible33
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Sep. 30, 2016 |
Other Intangible Assets | ||
Gross Amount | $ 2,075,563 | $ 2,575,574 |
Accumulated Amortization | (991,284) | (1,463,691) |
Net Amount | 1,084,279 | 1,111,883 |
Customer Relationships | ||
Other Intangible Assets | ||
Gross Amount | 1,298,148 | 1,793,739 |
Accumulated Amortization | (989,651) | (1,462,058) |
Net Amount | 308,497 | 331,681 |
Trade names | ||
Other Intangible Assets | ||
Gross Amount | 777,415 | 781,835 |
Accumulated Amortization | (1,633) | (1,633) |
Net Amount | $ 775,782 | $ 780,202 |
Goodwill and Other Intangible34
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 22.5 | $ 32 |
Customer Relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 3 years | |
Customer Relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 24 years | |
Customer Relationships | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 13 years |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2016 | May 31, 2016 | Dec. 17, 2015 | |
Secured Debt | Term Loan Facility Due July 2016 | U.S. dollar denominated term loans, Canadian subsidiary | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 74.1 | ||
Senior Notes | 5.125% Senior Notes, Due January 15, 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 400 | ||
Interest rate stated percentage | 5.125% | ||
Payments of financing costs | $ 6 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Thousands, € in Millions, £ in Millions, gal in Millions, CAD in Millions | 3 Months Ended | ||||||
Dec. 30, 2016USD ($) | Jan. 01, 2016USD ($) | Dec. 30, 2016EUR (€)gal | Dec. 30, 2016USD ($)gal | Dec. 30, 2016CADgal | Dec. 30, 2016GBP (£)gal | Sep. 30, 2016USD ($) | |
Derivative [Line Items] | |||||||
Cash flow hedge gain (loss) | $ (26,175) | $ (36,373) | |||||
Gain (loss) recognized in income | $ 6,115 | $ (18,673) | |||||
Designated as Hedging Instrument | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Net tax loss expected to be reclassified from accumulated other comprehensive loss | 8,800 | ||||||
Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Gain (loss) recognized in income | 12,088 | (7,595) | |||||
Interest rate swap agreements | Designated as Hedging Instrument | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | 2,400,000 | ||||||
Cash flow hedge gain (loss) | $ (26,200) | $ (36,400) | |||||
Cross currency swap agreements | Designated as Hedging Instrument | Cash Flow Hedging | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | 74,100 | ||||||
Loss reclassified from accumulated OCI into income, effective portion | 1,100 | ||||||
Repayments of debt | 74,100 | ||||||
Proceeds from Hedge, Financing Activities | 5,700 | ||||||
Gasoline and diesel fuel agreements | Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Non monetary notional amount of derivative (in gallons) | gal | 29 | 29 | 29 | 29 | |||
Gain (loss) recognized in income | $ 4,400 | $ (900) | |||||
Foreign currency forward exchange contracts | Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | € 48.7 | CAD 113.5 | £ 67.4 |
Derivative Instruments - Effect
Derivative Instruments - Effect on Other Comprehensive Income (Loss) (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Derivative [Line Items] | ||
Gain (Loss) recognized in other comprehensive income | $ 10,745 | $ 5,001 |
Interest rate swap agreements | ||
Derivative [Line Items] | ||
Gain (Loss) recognized in other comprehensive income | 10,745 | 7,117 |
Cross currency swap agreements | ||
Derivative [Line Items] | ||
Gain (Loss) recognized in other comprehensive income | $ 0 | $ (2,116) |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Presentation (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Sep. 30, 2016 |
Derivative instruments | ||
Fair value of derivative assets | $ 8,152 | $ 3,878 |
Interest rate swap agreements | 24,140 | 41,295 |
Designated as Hedging Instrument | ||
Derivative instruments | ||
Interest rate swap agreements | 23,074 | 40,848 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate swap agreements | ||
Derivative instruments | ||
Interest rate swap agreements | 4,489 | 5,929 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest rate swap agreements | ||
Derivative instruments | ||
Interest rate swap agreements | 18,585 | 34,919 |
Not Designated as Hedging Instrument | Prepayments and other current assets | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
Fair value of derivative assets | 8,152 | 3,878 |
Not Designated as Hedging Instrument | Accounts payable | Foreign currency forward exchange contracts | ||
Derivative instruments | ||
Interest rate swap agreements | $ 1,066 | $ 447 |
Derivative Instruments - Locati
Derivative Instruments - Location of (Gain) Loss Reclassified from AOCI Into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Derivative instruments | ||
(Gain) loss recognized in income | $ (6,115) | $ 18,673 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative instruments | ||
(Gain) loss reclassified from AOCI | 5,973 | 11,078 |
Designated as Hedging Instrument | Interest Expense | Cash Flow Hedging | Interest rate swap agreements | ||
Derivative instruments | ||
(Gain) loss reclassified from AOCI | 5,973 | 9,017 |
Designated as Hedging Instrument | Interest Expense | Cash Flow Hedging | Cross currency swap agreements | ||
Derivative instruments | ||
(Gain) loss reclassified from AOCI | 0 | 2,061 |
Not Designated as Hedging Instrument | ||
Derivative instruments | ||
(Gain) loss recognized in income | (12,088) | 7,595 |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | (4,400) | 900 |
Not Designated as Hedging Instrument | Interest Expense | Foreign currency forward exchange contracts | ||
Derivative instruments | ||
(Gain) loss recognized in income | (7,404) | 5,090 |
Not Designated as Hedging Instrument | Cost of services provided | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | $ (4,684) | $ 2,505 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 31, 2017 | |
Class of Stock [Line Items] | |||
Payments of dividends | $ 25,246 | $ 22,853 | |
Subsequent Event | Common Stock | |||
Class of Stock [Line Items] | |||
Dividends payable, amount per share (in dollars per share) | $ 0.103 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Expense and Other Options (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 16.2 | $ 15.3 |
Taxes related to share-based compensation | 6 | 6 |
TBOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 5.3 | 4.9 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 6.4 | 5.7 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 3.6 | 4 |
Deferred Stock and Other Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 0.9 | $ 0.7 |
Share-Based Compensation - Opti
Share-Based Compensation - Options Granted and Weighted Average Grant Date Fair Value (Details) shares in Millions | 3 Months Ended |
Dec. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 4.4 |
TBOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 2.6 |
Weighted-Average Grant-Date Fair Value (usd per unit) | $ / shares | $ 8.46 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 1.4 |
Weighted-Average Grant-Date Fair Value (usd per unit) | $ / shares | $ 34.08 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 0.4 |
Weighted-Average Grant-Date Fair Value (usd per unit) | $ / shares | $ 34.08 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Earnings: | ||
Net income attributable to Aramark stockholders | $ 125,339 | $ 93,343 |
Shares: | ||
Basic weighted-average shares outstanding (in shares) | 244,758 | 240,521 |
Effect of dilutive securities (in shares) | 7,835 | 7,092 |
Diluted weighted-average shares outstanding (in shares) | 252,593 | 247,613 |
Basic Earnings Per Share: | ||
Net income attributable to Aramark stockholders (in dollars per share) | $ 0.51 | $ 0.39 |
Diluted Earnings Per Share: | ||
Net income attributable to Aramark stockholders (in dollars per share) | $ 0.50 | $ 0.38 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Share-based Compensation Award | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS (in shares) | 3.3 | 3.8 |
Performance-Based Options and Performance Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS (in shares) | 1.1 | 0.7 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Dec. 30, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Maximum potential liability from vehicle leases | $ 110,600,000 |
Residual value guarantee, value assumptions, terminal fair value of vehicles coming off lease | 0 |
Residual value guarantee accrual | $ 0 |
Minimum | |
Loss Contingencies [Line Items] | |
Operating lease terms | 1 year |
Maximum | |
Loss Contingencies [Line Items] | |
Operating lease terms | 8 years |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016USD ($)segment | Jan. 01, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Number of operating segments | segment | 2 | |
Sales | $ 3,735,383 | $ 3,710,275 |
Operating Income | 244,055 | 214,093 |
Interest and Other Financing Costs, net | (65,677) | (71,320) |
Income Before Income Taxes | 178,378 | 142,773 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 270,700 | 248,700 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Operating Income | (26,600) | (34,600) |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 244,100 | 214,100 |
Interest and Other Financing Costs, net | (65,700) | (71,300) |
FSS North America | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,662,800 | 2,622,700 |
FSS North America | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 185,200 | 168,300 |
FSS International | ||
Segment Reporting Information [Line Items] | ||
Sales | 677,100 | 694,900 |
FSS International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 31,700 | 30,100 |
Uniform | ||
Segment Reporting Information [Line Items] | ||
Sales | 395,500 | 392,700 |
Uniform | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | $ 53,800 | $ 50,300 |
Products and Services Concentration | Food Services | Global Revenue | ||
Segment Reporting Information [Line Items] | ||
Concentration risk | 80.00% | |
Products and Services Concentration | Facility Services | Global Revenue | ||
Segment Reporting Information [Line Items] | ||
Concentration risk | 20.00% |
Fair Value of Financial Asset47
Fair Value of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Sep. 30, 2016 |
Fair Value Disclosure | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 5,486.9 | $ 5,365.6 |
Carrying Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 5,412.5 | $ 5,270 |
Condensed Consolidating Finan48
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Narrative (Details) - Senior Notes | Dec. 30, 2016 |
5.75% Senior Notes , due 2020 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate stated percentage | 5.75% |
5.125% Senior Notes, Due January 15, 2024 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate stated percentage | 5.125% |
4.75% Senior Notes, Due June 2026 | |
Condensed Financial Statements, Captions [Line Items] | |
Interest rate stated percentage | 4.75% |
Condensed Consolidating Finan49
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 30, 2016 | Sep. 30, 2016 | Jan. 01, 2016 | Oct. 02, 2015 |
Current Assets: | ||||
Cash and cash equivalents | $ 146,951 | $ 152,580 | $ 115,358 | $ 122,416 |
Receivables | 1,492,291 | 1,476,349 | ||
Inventories | 563,935 | 587,155 | ||
Prepayments and other current assets | 170,418 | 276,487 | ||
Total current assets | 2,373,595 | 2,492,571 | ||
Property and Equipment, net | 997,562 | 1,023,083 | ||
Goodwill | 4,608,287 | 4,628,881 | ||
Investment in and Advances to Subsidiaries | 0 | 0 | ||
Other Intangible Assets | 1,084,279 | 1,111,883 | ||
Other Assets | 1,320,201 | 1,325,654 | ||
Assets | 10,383,924 | 10,582,072 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 47,603 | 46,522 | ||
Accounts payable | 703,878 | 847,588 | ||
Accrued expenses and other current liabilities | 1,027,768 | 1,290,635 | ||
Total current liabilities | 1,779,249 | 2,184,745 | ||
Long-Term Borrowings | 5,364,855 | 5,223,514 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 991,453 | 1,003,013 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 9,825 | 9,794 | ||
Total stockholders' equity | 2,238,542 | 2,161,006 | ||
Liabilities and Stockholders’ Equity | 10,383,924 | 10,582,072 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepayments and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and Equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in and Advances to Subsidiaries | (8,775,274) | (8,441,040) | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | (2,002) | (2,002) | ||
Assets | (8,777,276) | (8,443,042) | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other current liabilities | (18,378) | (1,439) | ||
Total current liabilities | (18,378) | (1,439) | ||
Long-Term Borrowings | 0 | 0 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 0 | 0 | ||
Intercompany Payable | (6,120,490) | (6,020,230) | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | (2,638,408) | (2,421,373) | ||
Liabilities and Stockholders’ Equity | (8,777,276) | (8,443,042) | ||
Aramark (Parent) | ||||
Current Assets: | ||||
Cash and cash equivalents | 5 | 5 | 5 | 5 |
Receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepayments and other current assets | 0 | 0 | ||
Total current assets | 5 | 5 | ||
Property and Equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in and Advances to Subsidiaries | 2,238,637 | 2,161,101 | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Assets | 2,238,642 | 2,161,106 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other current liabilities | 100 | 100 | ||
Total current liabilities | 100 | 100 | ||
Long-Term Borrowings | 0 | 0 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 0 | 0 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 2,238,542 | 2,161,006 | ||
Liabilities and Stockholders’ Equity | 2,238,642 | 2,161,106 | ||
Aramark Services, Inc. (Issuer) | ||||
Current Assets: | ||||
Cash and cash equivalents | 27,484 | 47,850 | 25,077 | 31,792 |
Receivables | 150 | 167 | ||
Inventories | 14,673 | 15,284 | ||
Prepayments and other current assets | 3,848 | 69,033 | ||
Total current assets | 46,155 | 132,334 | ||
Property and Equipment, net | 29,688 | 30,201 | ||
Goodwill | 173,104 | 173,104 | ||
Investment in and Advances to Subsidiaries | 5,565,845 | 5,450,692 | ||
Other Intangible Assets | 29,729 | 29,729 | ||
Other Assets | 61,309 | 56,850 | ||
Assets | 5,905,830 | 5,872,910 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 21,931 | 21,998 | ||
Accounts payable | 156,316 | 156,471 | ||
Accrued expenses and other current liabilities | 148,265 | 145,314 | ||
Total current liabilities | 326,512 | 323,783 | ||
Long-Term Borrowings | 4,601,287 | 4,570,931 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 434,320 | 440,839 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 543,711 | 537,357 | ||
Liabilities and Stockholders’ Equity | 5,905,830 | 5,872,910 | ||
Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 28,984 | 31,344 | 33,155 | 42,811 |
Receivables | 321,995 | 265,124 | ||
Inventories | 475,353 | 492,855 | ||
Prepayments and other current assets | 66,505 | 98,779 | ||
Total current assets | 892,837 | 888,102 | ||
Property and Equipment, net | 762,707 | 782,347 | ||
Goodwill | 3,982,737 | 3,982,737 | ||
Investment in and Advances to Subsidiaries | 740,647 | 598,759 | ||
Other Intangible Assets | 875,692 | 894,274 | ||
Other Assets | 1,048,300 | 1,028,887 | ||
Assets | 8,302,920 | 8,175,106 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 15,951 | 15,598 | ||
Accounts payable | 304,823 | 415,481 | ||
Accrued expenses and other current liabilities | 599,976 | 827,213 | ||
Total current liabilities | 920,750 | 1,258,292 | ||
Long-Term Borrowings | 58,223 | 62,892 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 492,365 | 510,254 | ||
Intercompany Payable | 5,251,307 | 4,619,489 | ||
Redeemable Noncontrolling Interest | 9,825 | 9,794 | ||
Total stockholders' equity | 1,570,450 | 1,714,385 | ||
Liabilities and Stockholders’ Equity | 8,302,920 | 8,175,106 | ||
Non Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 90,478 | 73,381 | $ 57,121 | $ 47,808 |
Receivables | 1,170,146 | 1,211,058 | ||
Inventories | 73,909 | 79,016 | ||
Prepayments and other current assets | 100,065 | 108,675 | ||
Total current assets | 1,434,598 | 1,472,130 | ||
Property and Equipment, net | 205,167 | 210,535 | ||
Goodwill | 452,446 | 473,040 | ||
Investment in and Advances to Subsidiaries | 230,145 | 230,488 | ||
Other Intangible Assets | 178,858 | 187,880 | ||
Other Assets | 212,594 | 241,919 | ||
Assets | 2,713,808 | 2,815,992 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 9,721 | 8,926 | ||
Accounts payable | 242,739 | 275,636 | ||
Accrued expenses and other current liabilities | 297,805 | 319,447 | ||
Total current liabilities | 550,265 | 604,009 | ||
Long-Term Borrowings | 705,345 | 589,691 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 64,768 | 51,920 | ||
Intercompany Payable | 869,183 | 1,400,741 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 524,247 | 169,631 | ||
Liabilities and Stockholders’ Equity | $ 2,713,808 | $ 2,815,992 |
Condensed Consolidating Finan50
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Statements of Income And Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Sales | $ 3,735,383 | $ 3,710,275 |
Costs and Expenses: | ||
Cost of services provided | 3,299,329 | 3,294,523 |
Depreciation and amortization | 126,527 | 127,518 |
Selling and general corporate expenses | 65,472 | 74,141 |
Interest and other financing costs, net | 65,677 | 71,320 |
Expense allocations | 0 | 0 |
Costs and Expenses | 3,557,005 | 3,567,502 |
Income Before Income Taxes | 178,378 | 142,773 |
Provision for Income Taxes | 52,943 | 49,337 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 125,435 | 93,436 |
Less: Net income attributable to noncontrolling interest | 96 | 93 |
Net income attributable to Aramark stockholders | 125,339 | 93,343 |
Other comprehensive income (loss), net of tax | (24,682) | 5,002 |
Comprehensive income attributable to Aramark stockholders | 100,657 | 98,345 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 0 | 0 |
Costs and Expenses: | ||
Cost of services provided | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Selling and general corporate expenses | 0 | 0 |
Interest and other financing costs, net | 0 | 0 |
Expense allocations | 0 | 0 |
Costs and Expenses | 0 | 0 |
Income Before Income Taxes | 0 | 0 |
Provision for Income Taxes | 0 | 0 |
Equity in Net Income of Subsidiaries | (125,339) | (93,343) |
Net income | (125,339) | (93,343) |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | (125,339) | (93,343) |
Other comprehensive income (loss), net of tax | 44,808 | 5,642 |
Comprehensive income attributable to Aramark stockholders | (80,531) | (87,701) |
Non Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 954,548 | 936,465 |
Costs and Expenses: | ||
Cost of services provided | 872,868 | 859,805 |
Depreciation and amortization | 19,963 | 17,778 |
Selling and general corporate expenses | 4,624 | 4,802 |
Interest and other financing costs, net | 4,956 | 8,186 |
Expense allocations | 2,147 | (3,501) |
Costs and Expenses | 904,558 | 887,070 |
Income Before Income Taxes | 49,990 | 49,395 |
Provision for Income Taxes | 15,150 | 17,734 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 34,840 | 31,661 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 34,840 | 31,661 |
Other comprehensive income (loss), net of tax | (68,348) | (13,965) |
Comprehensive income attributable to Aramark stockholders | (33,508) | 17,696 |
Aramark (Parent) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 0 | 0 |
Costs and Expenses: | ||
Cost of services provided | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Selling and general corporate expenses | 0 | 0 |
Interest and other financing costs, net | 0 | 0 |
Expense allocations | ||
Costs and Expenses | 0 | 0 |
Income Before Income Taxes | 0 | 0 |
Provision for Income Taxes | 0 | 0 |
Equity in Net Income of Subsidiaries | 125,339 | 93,343 |
Net income | 125,339 | 93,343 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 125,339 | 93,343 |
Other comprehensive income (loss), net of tax | (24,682) | 5,002 |
Comprehensive income attributable to Aramark stockholders | 100,657 | 98,345 |
Aramark Services, Inc. (Issuer) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 252,379 | 256,743 |
Costs and Expenses: | ||
Cost of services provided | 228,812 | 234,974 |
Depreciation and amortization | 4,381 | 3,463 |
Selling and general corporate expenses | 28,367 | 36,846 |
Interest and other financing costs, net | 61,353 | 63,583 |
Expense allocations | (76,019) | (94,050) |
Costs and Expenses | 246,894 | 244,816 |
Income Before Income Taxes | 5,485 | 11,927 |
Provision for Income Taxes | 1,477 | 4,829 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 4,008 | 7,098 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 4,008 | 7,098 |
Other comprehensive income (loss), net of tax | 25,467 | 9,885 |
Comprehensive income attributable to Aramark stockholders | 29,475 | 16,983 |
Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 2,528,456 | 2,517,067 |
Costs and Expenses: | ||
Cost of services provided | 2,197,649 | 2,199,744 |
Depreciation and amortization | 102,183 | 106,277 |
Selling and general corporate expenses | 32,481 | 32,493 |
Interest and other financing costs, net | (632) | (449) |
Expense allocations | 73,872 | 97,551 |
Costs and Expenses | 2,405,553 | 2,435,616 |
Income Before Income Taxes | 122,903 | 81,451 |
Provision for Income Taxes | 36,316 | 26,774 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 86,587 | 54,677 |
Less: Net income attributable to noncontrolling interest | 96 | 93 |
Net income attributable to Aramark stockholders | 86,491 | 54,584 |
Other comprehensive income (loss), net of tax | (1,927) | (1,562) |
Comprehensive income attributable to Aramark stockholders | $ 84,564 | $ 53,022 |
Condensed Consolidating Finan51
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | $ (26,026) | $ (168,993) |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (106,600) | (91,499) |
Disposals of property and equipment | 1,349 | 2,017 |
Acquisitions of businesses, net of cash acquired | (1,045) | (231) |
Other investing activities | 166 | 3,579 |
Net cash used in investing activities | (106,130) | (86,134) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 45,987 | 431,736 |
Payments of long-term borrowings | (13,609) | (172,522) |
Net change in funding under the Receivables Facility | 132,000 | 25,000 |
Payments of dividends | (25,246) | (22,853) |
Proceeds from issuance of common stock | 3,121 | 7,512 |
Other financing activities | (15,726) | (20,804) |
Change in intercompany, net | 0 | 0 |
Net cash provided by financing activities | 126,527 | 248,069 |
Increase in cash and cash equivalents | (5,629) | (7,058) |
Cash and cash equivalents, beginning of period | 152,580 | 122,416 |
Cash and cash equivalents, end of period | 146,951 | 115,358 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (610) | 57,380 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | 0 | 0 |
Disposals of property and equipment | 0 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | 0 | 0 |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Other financing activities | 0 | 0 |
Change in intercompany, net | 610 | (57,380) |
Net cash provided by financing activities | 610 | (57,380) |
Increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 |
Aramark (Parent) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | 0 | 64 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | 0 | 0 |
Disposals of property and equipment | 0 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | 0 | 0 |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Other financing activities | 0 | 0 |
Change in intercompany, net | 0 | (64) |
Net cash provided by financing activities | 0 | (64) |
Increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents, beginning of period | 5 | 5 |
Cash and cash equivalents, end of period | 5 | 5 |
Aramark Services, Inc. (Issuer) | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | 102,805 | 3,763 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (4,921) | (4,038) |
Disposals of property and equipment | 49 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Other investing activities | (1,836) | 493 |
Net cash used in investing activities | (6,708) | (3,545) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 40,900 | 393,969 |
Payments of long-term borrowings | (5,484) | (67,480) |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | (25,246) | (22,853) |
Proceeds from issuance of common stock | 3,121 | 7,512 |
Other financing activities | (15,300) | (20,000) |
Change in intercompany, net | (114,454) | (298,081) |
Net cash provided by financing activities | (116,463) | (6,933) |
Increase in cash and cash equivalents | (20,366) | (6,715) |
Cash and cash equivalents, beginning of period | 47,850 | 31,792 |
Cash and cash equivalents, end of period | 27,484 | 25,077 |
Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (168,396) | (162,469) |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (88,327) | (72,101) |
Disposals of property and equipment | 546 | 2,017 |
Acquisitions of businesses, net of cash acquired | 0 | (231) |
Other investing activities | (3,083) | 4,824 |
Net cash used in investing activities | (90,864) | (65,491) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | (4,591) | (2,818) |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Other financing activities | (361) | (589) |
Change in intercompany, net | 261,852 | 221,711 |
Net cash provided by financing activities | 256,900 | 218,304 |
Increase in cash and cash equivalents | (2,360) | (9,656) |
Cash and cash equivalents, beginning of period | 31,344 | 42,811 |
Cash and cash equivalents, end of period | 28,984 | 33,155 |
Non Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | 40,175 | (67,731) |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (13,352) | (15,360) |
Disposals of property and equipment | 754 | 0 |
Acquisitions of businesses, net of cash acquired | (1,045) | 0 |
Other investing activities | 5,085 | (1,738) |
Net cash used in investing activities | (8,558) | (17,098) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 5,087 | 37,767 |
Payments of long-term borrowings | (3,534) | (102,224) |
Net change in funding under the Receivables Facility | 132,000 | 25,000 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Other financing activities | (65) | (215) |
Change in intercompany, net | (148,008) | 133,814 |
Net cash provided by financing activities | (14,520) | 94,142 |
Increase in cash and cash equivalents | 17,097 | 9,313 |
Cash and cash equivalents, beginning of period | 73,381 | 47,808 |
Cash and cash equivalents, end of period | $ 90,478 | $ 57,121 |