Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Jun. 30, 2017 | Jul. 28, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 245,105,108 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 154,674 | $ 152,580 |
Receivables (less allowances: 2017 - $49,447; 2016 - $48,058) | 1,532,879 | 1,476,349 |
Inventories | 567,564 | 587,155 |
Prepayments and other current assets | 209,325 | 276,487 |
Total current assets | 2,464,442 | 2,492,571 |
Property and Equipment, net | 981,536 | 1,023,083 |
Goodwill | 4,702,397 | 4,628,881 |
Other Intangible Assets | 1,121,541 | 1,111,883 |
Other Assets | 1,380,455 | 1,325,654 |
Assets | 10,650,371 | 10,582,072 |
Current Liabilities: | ||
Current maturities of long-term borrowings | 74,237 | 46,522 |
Accounts payable | 729,041 | 847,588 |
Accrued expenses and other current liabilities | 1,098,624 | 1,290,635 |
Total current liabilities | 1,901,902 | 2,184,745 |
Long-Term Borrowings | 5,440,143 | 5,223,514 |
Deferred Income Taxes and Other Noncurrent Liabilities | 975,715 | 1,003,013 |
Redeemable Noncontrolling Interest | 9,844 | 9,794 |
Stockholders' Equity: | ||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2017—276,454,403 shares and 2016—272,565,923 shares; and outstanding: 2017—245,023,211 shares and 2016—244,713,580 shares) | 2,765 | 2,726 |
Capital surplus | 2,994,994 | 2,921,725 |
Retained earnings/(Accumulated deficit) | 159,182 | (33,778) |
Accumulated other comprehensive loss | (156,073) | (180,783) |
Treasury stock (shares held in treasury: 2017—31,431,192 shares and 2016—27,852,343 shares) | (678,101) | (548,884) |
Total stockholders' equity | 2,322,767 | 2,161,006 |
Liabilities and Stockholders’ Equity | $ 10,650,371 | $ 10,582,072 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 49,447 | $ 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) | 276,454,403 | 272,565,923 |
Common stock, shares outstanding (in shares) | 245,023,211 | 244,713,580 |
Treasury stock, shares held in treasury (in shares) | 31,431,192 | 27,852,343 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Income Statement [Abstract] | ||||
Sales | $ 3,593,277 | $ 3,586,908 | $ 10,950,288 | $ 10,872,005 |
Costs and Expenses: | ||||
Cost of services provided | 3,232,366 | 3,233,884 | 9,757,892 | 9,738,117 |
Depreciation and amortization | 126,440 | 122,363 | 378,258 | 370,172 |
Selling and general corporate expenses | 79,792 | 61,317 | 223,984 | 208,165 |
Total Costs and Expenses | 3,438,598 | 3,417,564 | 10,360,134 | 10,316,454 |
Operating income | 154,679 | 169,344 | 590,154 | 555,551 |
Interest and Other Financing Costs, net | 61,483 | 103,764 | 224,791 | 246,835 |
Income Before Income Taxes | 93,196 | 65,580 | 365,363 | 308,716 |
Provision for Income Taxes | 27,832 | 20,722 | 104,334 | 103,925 |
Net income | 65,364 | 44,858 | 261,029 | 204,791 |
Less: Net income attributable to noncontrolling interest | 69 | 93 | 244 | 329 |
Net income attributable to Aramark stockholders | $ 65,295 | $ 44,765 | $ 260,785 | $ 204,462 |
Earnings per share attributable to Aramark stockholders: | ||||
Basic (in dollars per share) | $ 0.27 | $ 0.18 | $ 1.07 | $ 0.85 |
Diluted (in dollars per share) | $ 0.26 | $ 0.18 | $ 1.04 | $ 0.82 |
Weighted Average Shares Outstanding: | ||||
Basic (in shares) | 244,266 | 242,831 | 244,399 | 241,740 |
Diluted (in shares) | 251,156 | 249,057 | 251,548 | 248,322 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 65,364 | $ 44,858 | $ 261,029 | $ 204,791 |
Other comprehensive income (loss), net of tax | ||||
Pension plan adjustments | 0 | (5,383) | 0 | (5,383) |
Foreign currency translation adjustments | 16,994 | (2,105) | (4,258) | 3,655 |
Fair value of cash flow hedges | 580 | (441) | 28,968 | 7,269 |
Other comprehensive income (loss), net of tax | 17,574 | (7,929) | 24,710 | 5,541 |
Comprehensive income | 82,938 | 36,929 | 285,739 | 210,332 |
Less: Net income attributable to noncontrolling interest | 69 | 93 | 244 | 329 |
Comprehensive income attributable to Aramark stockholders | $ 82,869 | $ 36,836 | $ 285,495 | $ 210,003 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 261,029 | $ 204,791 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 378,258 | 370,172 |
Deferred income taxes | (21,094) | 54,291 |
Share-based compensation expense | 50,318 | 43,556 |
Changes in operating assets and liabilities | (251,872) | (286,103) |
Other operating activities | 32,550 | 23,833 |
Net cash provided by operating activities | 449,189 | 410,540 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (340,294) | (350,170) |
Disposals of property and equipment | 14,917 | 18,029 |
Acquisition of certain businesses, net of cash acquired | (130,094) | (59,377) |
Other investing activities | 1,701 | 7,194 |
Net cash used in investing activities | (453,770) | (384,324) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 3,707,408 | 1,398,395 |
Payments of long-term borrowings | (3,561,500) | (1,245,449) |
Net change in funding under the Receivables Facility | 82,000 | (9,730) |
Payments of dividends | (75,543) | (68,873) |
Proceeds from issuance of common stock | 23,048 | 23,296 |
Repurchase of stock | (100,000) | 0 |
Other financing activities | (68,738) | (49,764) |
Net cash provided by financing activities | 6,675 | 47,875 |
Increase in cash and cash equivalents | 2,094 | 74,091 |
Cash and cash equivalents, beginning of period | 152,580 | 122,416 |
Cash and cash equivalents, end of period | 154,674 | 196,507 |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | 147,300 | 174,000 |
Income taxes paid | $ 81,300 | $ 26,200 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2017 | |
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. 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 Standards Updates In May 2017, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") to clarify the determination of the customer of the operation services in a service concession arrangement. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company will adopt this standard in conjunction with the revenue recognition standard, as described below. The Company is currently evaluating the impact of the pronouncement. In May 2017, the FASB issued an ASU to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. 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 2017, the FASB issued an ASU to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. 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 February 2017, the FASB issued an ASU to clarify the accounting guidance for partial sales of nonfinancial assets. 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 January 2017, the FASB issued an 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 June 2016, the FASB issued an ASU to require entities to account for expected credit losses on financial instruments including trade receivables. 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 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 flows 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 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 was $6.2 million and $18.4 million o f excess tax benefit recorded as a reduction to the provision for income taxes for the three and nine months ended June 30, 2017 . 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 benefits of $18.4 million and $21.7 million f or share-based awards are included in operating activities, previously classified in financing activities, and approximately $22.7 million and $23.9 million of cash paid for employee taxes for withheld shares are inclu ded in financing activities, previously classified in operating activities, for the nine months ended June 30, 2017 and July 1, 2016 , respectively. As a result of the adoption, the excess tax benefits are no longer included in the calculation of diluted shares under the treasury stock method, which increased the diluted shares outstanding by approximately 1.4 million shares for both the three and nine months ended June 30, 2017 . 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 in the process of developing an inventory of its lease arrangements in order to determine the impact the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. Based on the assessment to date, the Company expects adoption of this standard to result in a material increase in lease-related assets and liabilities on its Condensed Consolidated Balance Sheets, but does not expect it to have a significant impact on its Condensed Consolidated Statements of Income or Cash Flows. 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 or loss (net of tax). The summary of the components of comprehensive income (loss) is as follows (in thousands): Three Months Ended June 30, 2017 July 1, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 65,364 $ 44,858 Pension plan adjustments — — — (8,282 ) 2,899 (5,383 ) Foreign currency translation adjustments 14,529 2,465 16,994 4,142 (6,247 ) (2,105 ) Fair value of cash flow hedges 951 (371 ) 580 (730 ) 289 (441 ) Other comprehensive income (loss) 15,480 2,094 17,574 (4,870 ) (3,059 ) (7,929 ) Comprehensive income 82,938 36,929 Less: Net income attributable to noncontrolling interest 69 93 Comprehensive income attributable to Aramark stockholders $ 82,869 $ 36,836 Nine Months Ended June 30, 2017 July 1, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 261,029 $ 204,791 Pension plan adjustments — — — (8,282 ) 2,899 (5,383 ) Foreign currency translation adjustments (11,429 ) 7,171 (4,258 ) 17,190 (13,535 ) 3,655 Fair value of cash flow hedges 47,489 (18,521 ) 28,968 2,351 4,918 7,269 Other comprehensive income (loss) 36,060 (11,350 ) 24,710 11,259 (5,718 ) 5,541 Comprehensive income 285,739 210,332 Less: Net income attributable to noncontrolling interest 244 329 Comprehensive income attributable to Aramark stockholders $ 285,495 $ 210,003 Accumulated other comprehensive loss consists of the following (in thousands): June 30, 2017 September 30, 2016 Pension plan adjustments $ (65,267 ) $ (65,267 ) Foreign currency translation adjustments (72,719 ) (68,461 ) Cash flow hedges (7,405 ) (36,373 ) Share of equity investee's accumulated other comprehensive loss (10,682 ) (10,682 ) $ (156,073 ) $ (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 generally 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 $900.1 million and $865.0 million as of June 30, 2017 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. |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS: During the nine month period of fiscal 2017, the Company paid cash consideration of approximately $130.1 million for various acquisitions. The sales, net income, assets and liabilities of the acquisitions did not have a material impact on the Company's condensed consolidated financial statements. During the second quarter of fiscal 2016, the Company completed the purchase of Avoca Handweavers Limited ("Avoca"), an Irish retail and café business, for cash consideration of approximately $65.8 million (approximately $59.2 million , net of cash acquired). The sales, net income, assets and liabilities of Avoca did not have a material impact on the Company's condensed consolidated financial statements. |
Severance
Severance | 9 Months Ended |
Jun. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Severance | SEVERANCE: During the third quarter of fiscal 2017, the Company updated its previously initiated actions on streamlining and improving the efficiencies and effectiveness of its selling, general and administrative functions. The Company recorded net severance charges of approximately $18.4 million during the three and nine month periods of fiscal 2017 . For the three and nine month periods of fiscal 2016 , the Company recorded net severance charges of approximately $1.9 million and $9.0 million , respectively. As of June 30, 2017 and September 30, 2016 , the Company had an accrual of approximately $27.3 million and $26.1 million , respectively, related to the unpaid obligations for these actions. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jun. 30, 2017 | |
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 nine months ended June 30, 2017 follow (in thousands): Segment September 30, 2016 Acquisition Translation June 30, 2017 FSS North America $ 3,635,614 $ 32,497 $ (1,138 ) $ 3,666,973 FSS International 418,488 32,022 6,029 456,539 Uniform 574,779 4,106 — 578,885 $ 4,628,881 $ 68,625 $ 4,891 $ 4,702,397 Goodwill related to the acquisitions made during the nine months ended June 30, 2017 may be revised upon final determination of the purchase price allocation. Other intangible assets consist of the following (in thousands): June 30, 2017 September 30, 2016 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,357,151 $ (1,034,710 ) $ 322,441 $ 1,793,739 $ (1,462,058 ) $ 331,681 Trade names 799,100 — 799,100 781,835 (1,633 ) 780,202 $ 2,156,251 $ (1,034,710 ) $ 1,121,541 $ 2,575,574 $ (1,463,691 ) $ 1,111,883 During the nine months ended June 30, 2017 , the Company acquired customer relationship assets and trade names with preliminary values of approximately $55.6 million and $17.8 million , respectively. 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 14 years. The Aramark and other 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 nine months ended June 30, 2017 and July 1, 2016 was approximately $66.3 million and $75.9 million , respectively. |
Borrowings
Borrowings | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS: Long-term borrowings, net, are summarized in the following table (in thousands): June 30, 2017 September 30, 2016 Senior secured revolving credit facility, due March 2022 $ 155,700 $ — Senior secured term loan facility, due September 2019 — 840,305 Senior secured term loan facility, due February 2021 — 2,450,749 Senior secured term loan facility, due March 2022 835,607 — Senior secured term loan facility, due March 2024 1,736,423 — 5.750% senior notes, due March 2020 — 227,032 5.125% senior notes, due January 2024 904,014 905,095 4.750% senior notes, due June 2026 493,320 492,886 5.000% senior notes, due April 2025 589,450 — 3.125% senior notes, due April 2025 366,822 — Receivables Facility, due May 2019 350,000 268,000 Capital leases 78,447 78,615 Other 4,597 7,354 5,514,380 5,270,036 Less—current portion (74,237 ) (46,522 ) $ 5,440,143 $ 5,223,514 As of June 30, 2017 , there was approximately $571.4 million of outstanding foreign currency borrowings. Fiscal 2017 Refinancing Transactions On March 22, 2017, Aramark Services, Inc. (" ASI "), an indirect wholly owned subsidiary of the Company, issued $600.0 million of 5.000% Senior Notes due April 1, 2025 (the " 5.000% 2025 Notes"). On March 27, 2017, Aramark International Finance S.à r.l. (" AIFS " and, together with ASI , " the Issuers "), an indirect wholly owned subsidiary of the Company, issued €325.0 million of 3.125% Senior Notes due April 1, 2025 (the " 3.125% 2025 Notes" and, together with the 5.000% 2025 Notes, the " Notes "). On March 28, 2017, ASI and certain of its subsidiaries entered into a Credit Agreement (the "Credit Agreement"), which replaced the existing Amended and Restated Credit Agreement, originally dated January 26, 2007, and last amended on March 28, 2014 (the "Previous Credit Agreement"). Among other things, the Credit Agreement provides for the following as of June 30, 2017 : • A U.S. dollar denominated term loan to ASI in the amount of $641.9 million , due 2022 , (" U.S. Term Loan A ") and $1.7 billion , due 2024 (" U.S. Term Loan B "); • A Canadian dollar denominated term loan to Aramark Canada Ltd. in the amount of CAD 131.7 million , due 2022 (approximately $101.6 million ) (" Canadian Term Loan "); • A yen denominated term loan to ASI in the amount of ¥ 11,079.2 million , due 2022 (approximately $98.6 million ) (" Yen Term Loan "); and • A revolving credit facility available for loans in U.S. dollars, Canadian dollars, euros and pounds sterling to ASI and certain foreign borrowers with aggregate commitments under the Credit Agreement of $1.0 billion and a final maturity date of March 28, 2022 . The net proceeds from the Notes and borrowings under the senior secured term loan facilities under the Credit Agreement were used to repay all existing outstanding borrowings under the term loans under the Previous Credit Agreement, to redeem ASI's 5.750% senior notes, due March 2020 (the "2020 Notes"), and to pay certain fees and related expenses. The Company recorded $27.0 million of charges to "Interest and Other Financing Costs, net" in the Condensed Consolidated Statements of Income for the nine months ended June 30, 2017 , consisting of $23.7 million of non-cash charges for the write-off of deferred financing costs and original issue discount and $3.3 million for the call premium on the 2020 Notes. During the nine months ended June 30, 2017 , the Company capitalized third-party costs of approximately $15.1 million directly attributable to the Notes and approximately $16.4 million directly attributable to the new senior secured term loan facilities under the Credit Agreement, which are included in "Long-Term Borrowings" in the Condensed Consolidated Balance Sheets. The Company also capitalized third-party costs of approximately $8.2 million during the second quarter of fiscal 2017, directly attributable to the senior secured revolving credit facility, which are included in "Other Assets" in the Condensed Consolidated Balance Sheets. Senior Secured Credit Agreement The applicable margin spread for the U.S. Term Loan B is 1.75% to 2.00% (as of June 30, 2017 — 2.00% ) with respect to eurocurrency (LIBOR) borrowings, subject to a LIBOR floor of 0.00% , and 0.75% to 1.00% (as of June 30, 2017 — 1.00% ) with respect to base-rate borrowings, subject to a minimum base rate of 0.00% . The applicable margin spread for the U.S. Term Loan A , Canadian Term Loan and the senior secured revolving credit facility is 1.50% to 2.25% (as of June 30, 2017 — 1.75% ) with respect to eurocurrency (LIBOR) borrowings, bankers’ acceptance ("BA") rate borrowings and letters of credit fees and 0.50% to 1.25% (as of June 30, 2017 — 0.75% ) with respect to U.S. and Canadian base rate borrowings. The applicable margin for the Yen Term Loan is 1.75% . In addition to paying interest on outstanding principal under the senior secured credit facilities, the Company is required to pay a commitment fee to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. The commitment fee rate ranges from 0.25% to 0.40% per annum (as of June 30, 2017 — 0.30% ). The actual spreads within all ranges referred to above are based on a Consolidated Leverage Ratio, as defined in the Credit Agreement. The Company's revolving credit facility includes a $250.0 million sublimit for letters of credit. The Credit Agreement provides that the Company has the right at any time to request one or more incremental term loan facilities or increases under existing term loan facilities and/or additional revolving credit facilities or increases under the existing revolving credit facility in an amount up to $1,400.0 million of incremental commitments in the aggregate plus an unlimited amount so long as the pro forma Consolidated Secured Debt to Covenant Adjusted EBITDA ratio (each as defined in the Credit Agreement (the "Consolidated Secured Debt Ratio")) would not exceed 3.00 to 1.00, plus any amount of loans and commitments optionally prepaid and terminated under the senior secured credit facilities. The lenders under these facilities are not under any obligation to provide any such incremental facilities or commitments, and any such addition of or increase in facilities or commitments will be subject to customary conditions precedent. The revolving credit facility may be drawn by ASI as well as by certain foreign subsidiaries of ASI. Each foreign borrower is subject to a sublimit of $150.0 million with respect to borrowings under the revolving credit facility. As of June 30, 2017 , there was approximately $842.8 million available for borrowing under the revolving credit facility. Prepayments and Amortization The Credit Agreement requires us to prepay outstanding term loans, subject to certain exceptions, with: • 50% of ASI 's annual excess cash flow (as defined in the Credit Agreement) with stepdowns to 25% and 0% upon ASI 's reaching certain Consolidated Secured Debt Ratio thresholds; provided, further, that such prepayment shall only be required to the extent excess cash flow for the applicable year exceeds $10.0 million ; • 100% of the net cash proceeds of all nonordinary course asset sales or other dispositions of property subject to certain exceptions and customary reinvestment rights; provided, further, that such prepayment shall only be required to the extent net cash proceeds exceeds $100.0 million ; and • 100% of the net cash proceeds of any incurrence of debt, but excluding proceeds from certain debt permitted under the Credit Agreement. The foregoing mandatory prepayments will be applied to the term loan facilities on a pro rata basis and will reduce the obligations to make scheduled amortization payments on a dollar for dollar basis as directed by the Company. The Company may voluntarily repay outstanding loans under the senior secured credit facilities at any time without premium or penalty, other than (i) customary "breakage" costs with respect to LIBOR loans and (ii) with respect to any voluntary prepayments of the U.S. Term Loan B in connection with any repricing transaction (as defined in the Credit Agreement) effected prior to September 28, 2017, a 1% prepayment premium. Prepaid term loans may not be reborrowed. If a change of control as defined in the Credit Agreement occurs, this will cause an event of default under the Credit Agreement. Upon an event of default, the new senior secured credit facilities may be accelerated, in which case the Company would be required to repay all outstanding loans plus accrued and unpaid interest and all other amounts outstanding under the new senior secured credit facilities under the Credit Agreement. The Company is required to make quarterly principal repayments on the U.S. Term Loan B and the Yen Term Loan in quarterly amounts of 1.00% per annum of their funded total principal amount. The Company is required to make quarterly principal repayments on the U.S. Term Loan A and the Canadian Term Loan in quarterly amounts of 5.0% , 5.0% , 7.5% , 10.0% and 15.0% per annum of their funded total principal amount in the first, second, third, fourth and fifth years after the closing date of the senior secured credit facilities under the Credit Agreement, respectively. Guarantees All obligations under the Credit Agreement are unconditionally guaranteed by Aramark Intermediate HoldCo Corporation and, subject to certain exceptions, substantially all of ASI 's existing and future wholly-owned domestic subsidiaries excluding certain immaterial subsidiaries, receivables facility subsidiaries, certain other customarily excluded subsidiaries and certain subsidiaries designated under the Credit Agreement as "unrestricted subsidiaries", referred to, collectively, as the U.S. Guarantors. All obligations under the senior secured credit facilities, and the guarantees of those obligations, are secured by (i) a pledge of 100% of the capital stock of ASI , (ii) pledges of 100% of the capital stock (or 65% of voting stock and 100% of non-voting stock, in the case of the stock of foreign subsidiaries) held by ASI , Aramark Intermediate HoldCo Corporation or any of the U.S. Guarantors and (iii) a security interest in, and mortgages on, substantially all tangible assets of Aramark Intermediate HoldCo Corporation, ASI or any of the U.S. Guarantors. Certain Covenants The Credit Agreement contains certain covenants that, among other things, restrict, subject to certain exceptions, ASI 's ability and the ability of its restricted subsidiaries to: incur additional indebtedness; issue preferred stock or provide guarantees; create liens on assets; engage in mergers or consolidations; sell assets; pay dividends, make distributions or repurchase its capital stock; make investments, loans or advances; repay or repurchase any subordinated debt, except as scheduled or at maturity; create restrictions on the payment of dividends or other transfers to ASI from its restricted subsidiaries; make certain acquisitions; engage in certain transactions with affiliates; amend material agreements governing ASI 's subordinated debt; and fundamentally change ASI 's business. In addition, the Credit Agreement requires ASI to comply with a maximum Consolidated Secured Debt Ratio maintenance covenant. The Credit Agreement also contains certain customary affirmative covenants, such as financial and other reporting, and certain events of default. At June 30, 2017 , ASI was in compliance with all of these covenants. The Credit Agreement requires ASI to maintain a maximum Consolidated Secured Debt Ratio, defined as consolidated total indebtedness secured by a lien to Covenant Adjusted EBITDA, of 5.125 x. Consolidated total indebtedness secured by a lien is defined in the Credit Agreement as total indebtedness outstanding under the Credit Agreement, capital leases, advances under the Receivables Facility and any other indebtedness secured by a lien reduced by the amount of cash and cash equivalents on the consolidated balance sheet that is free and clear of any lien. Non-compliance with the maximum Consolidated Secured Debt Ratio could result in the requirement to immediately repay all amounts outstanding under the Credit Agreement, which, if ASI 's revolving credit facility lenders failed to waive any such default, would also constitute a default under the indentures governing the senior notes. The Credit Agreement establishes an incurrence-based minimum Interest Coverage Ratio, defined as Covenant Adjusted EBITDA to consolidated interest expense, as a condition for ASI and its restricted subsidiaries to incur additional indebtedness and to make certain restricted payments. The minimum Interest Coverage Ratio is 2.00 x for the term of the Credit Agreement. If ASI does not maintain this minimum Interest Coverage Ratio calculated on a pro forma basis for any such additional indebtedness or restricted payments, it could be prohibited from being able to incur additional indebtedness, other than the additional funding provided for under the Credit Agreement and pursuant to specified exceptions, and make certain restricted payments, other than pursuant to certain exceptions. A failure to pay any obligations under the Credit Agreement as they become due or any event causing amounts to become due prior to their stated maturity could result in a cross-default and potential acceleration of the Company’s other outstanding debt obligations, including the senior notes. Senior Notes 5.000% Senior Notes due 2025 and 3.125% Senior Notes due 2025 The 5.000% 2025 Notes were issued pursuant to an indenture, dated as of March 22, 2017 (the " 5.000% 2025 Notes Indenture"), entered into by and among ASI , the Company and certain other Aramark entities, as guarantors, and The Bank of New York Mellon, as trustee. The 5.000% 2025 Notes were issued at par. The 3.125% 2025 Notes were issued pursuant to an indenture, dated as of March 27, 2017 (the " 3.125% 2025 Notes Indenture"), entered into by and among AIFS , the Company and certain other Aramark entities, as guarantors, The Bank of New York Mellon, as trustee and registrar, and The Bank of New York Mellon, London Branch, as paying agent and transfer agent. The 3.125% 2025 Notes were issued at par. The Notes are senior unsecured obligations of the respective Issuers. Each series of the Notes ranks equal in right of payment to all of the respective Issuer's existing and future senior indebtedness, including the senior secured credit facilities under the Credit Agreement, and, in the case of the 5.000% 2025 Notes with respect to ASI, ASI's 5.125% Senior Notes due 2024 (the "2024 Notes") and 4.750% Senior Notes due 2026 (the "2026 Notes") and will rank senior in right of payment to the respective Issuer's future subordinated indebtedness. The Notes are guaranteed on a senior, unsecured basis by the Company and substantially all of the domestic subsidiaries of ASI and the 3.125% 2025 Notes are guaranteed on a senior, unsecured basis by ASI. The guarantees of the Notes rank equal in right of payment to all of the senior obligations of such guarantor, including guarantees of the senior secured credit facilities, the 2024 Notes, the 2026 Notes and the 5.000% 2025 Notes or 3.125% 2025 Notes, as applicable, and in the case of the 3.125% 2025 Notes with respect to ASI, ASI’s obligations under the senior secured credit facilities, the 2024 Notes, the 2026 Notes and the 5.000% 2025 Notes. Each series of the Notes and the related guarantees thereof are effectively subordinated to all of the respective Issuers' existing and future secured indebtedness, including obligations and/or guarantees of the senior secured credit facilities under the Credit Agreement, to the extent of the value of the assets securing that indebtedness, and structurally subordinated to all of the liabilities of any of ASI 's subsidiaries that do not guarantee the Notes . Interest on the Notes is payable on April 1 and October 1 of each year, commencing on October 1, 2017. Interest accrues from March 22, 2017 for the 5.000% 2025 Notes and interest accrues from March 27, 2017 for the 3.125% 2025 Notes. In the event of certain types of changes of control, the holders of the Notes may require the applicable Issuer to purchase for cash all or a portion of their Notes at a purchase price equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest, if any, to, but not including, the purchase date. Beginning April 1, 2020, ASI has the option to redeem all or a portion of the 5.000% 2025 Notes at any time at the redemption prices set forth in the 5.000% 2025 Notes Indenture, plus accrued and unpaid interest. Beginning April 1, 2020, AIFS has the option to redeem all or a portion of the 3.125% 2025 Notes at any time at the redemption prices set forth in the 3.125% 2025 Notes Indenture, plus accrued and unpaid interest. The 5.000% 2025 Notes Indenture and the 3.125% 2025 Notes Indenture contain covenants limiting ASI's ability and the ability of its restricted subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends and make certain distributions, investments and other restricted payments; create certain liens; sell assets; enter into transactions with affiliates; limit the ability of restricted subsidiaries to make payments to ASI; enter into sale and leaseback transactions; merge, consolidate, sell or otherwise dispose of all or substantially all of ASI's and its restricted subsidiaries assets; and designate ASI's subsidiaries as unrestricted subsidiaries. The 5.000% 2025 Notes Indenture and the 3.125% 2025 Notes Indenture also provide for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the applicable series of Notes to become or to be declared due and payable. Further, a failure to pay any obligations under the 5.000% 2025 Notes Indenture or the 3.125% 2025 Notes Indenture as they become due or any event causing amounts to become due prior to their stated maturity could result in a cross-default and potential acceleration of the Company’s other outstanding debt obligations, including the other senior notes and obligations under the Credit Agreement. Fiscal 2016 Refinancing Transactions On May 31, 2016, ASI issued $1.0 billion principal amount of senior unsecured notes, consisting of the 2024 Notes and the 2026 Notes. The 2024 Notes were issued pursuant to an indenture dated as of December 17, 2015, as supplemented by the supplemental indenture, dated as of May 31, 2016, entered into by ASI, certain other Aramark entities, as guarantors of the 2024 Notes and the Bank of New York Mellon, as trustee. The 2026 Notes were issued pursuant to the indenture, dated as of May 31, 2016, entered into by ASI, certain other Aramark entities, as guarantors of the 2026 Notes and The Bank of New York Mellon, as trustee. The 2024 Notes were issued at a premium of $18.8 million , which created an effective yield of 4.6% . The premium was recorded to "Long-Term Borrowings" in the Condensed Consolidated Balance Sheets and will be amortized to "Interest and Other Financing Costs, net" in the Condensed Consolidated Statements of Income until maturity in 2024. The 2026 Notes were issued at par. The net proceeds from the 2024 Notes and the 2026 Notes and premium from the 2024 Notes were used to redeem $194.1 million of the senior secured term loan facility due September 2019 (the "2019 Term Loans"), repay $771.2 million principal of the 2020 Notes, pay a $22.2 million call premium on the 2020 Notes, pay $11.1 million of accrued interest on the 2020 Notes and fees and costs associated with the 2024 Notes and 2026 Notes. As a result of the issuance of the 2024 Notes and 2026 Notes, the Company recorded charges of approximately $30.2 million , to "Interest and Other Financing Costs, net" in the Condensed Consolidated Statements of Income for the nine months ended July 1, 2016, consisting of $22.2 million for the call premium on the 2020 Notes and $8.0 million of non-cash charges for the write-off of debt issuance costs and debt discount on the 2020 Notes and 2019 Term Loans. The Company also paid approximately $14.2 million in debt issuance costs spread evenly between the 2024 Notes and 2026 Notes, which were recorded as a reduction to "Long-Term Borrowings" in the Condensed Consolidated Balance Sheets. On December 17, 2015, ASI issued $400 million of 2024 Notes, pursuant to an indenture, dated as of December 17, 2015, entered into by ASI, certain other Aramark entities, as guarantors of the 2024 Notes and the Bank of New York Mellon, as trustee. The 2024 Notes were issued at par. The Company paid approximately $6.0 million in financing fees related to the 2024 Notes. Future Maturities After giving effect to the refinancing activity during the second quarter of fiscal 2017, at June 30, 2017 , annual maturities on long-term borrowings maturing between fiscal years 2017 and 2022 and thereafter (excluding the $49.0 million reduction to long-term borrowings from debt issuance costs and the increase of $15.6 million from the premium on the 2024 Notes) are as follows (in thousands): 2017 $ 20,297 2018 78,204 2019 414,698 2020 117,647 2021 125,111 2022 766,729 Thereafter 4,025,127 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Jun. 30, 2017 | |
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 the risk of 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 previously entered into approximately $2.4 billion notional amount of outstanding interest rate swap agreements, fixing the rate on a like amount of variable rate borrowings. During the third quarter of fiscal 2017, the Company entered into $200.0 million notional amount of forward starting interest rate swap agreements to hedge the cash flow risk of variability in interest payments on variable rate borrowings. In addition, interest rate swaps with a notional amount of $350.0 million matured during the third quarter of fiscal 2017. As a result of the Credit Agreement, the Company de-designated the previous interest rate swap agreements as the terms of the interest rate swaps did not match the terms of the new term loans. Prior to the Credit Agreement, these agreements met the required criteria to be designated as cash flow hedging instruments. The Company then amended the interest rate swap agreements to match the terms of the new term loans under the Credit Agreement to meet the criteria to be designated as cash flow hedging instruments. As a result of the de-designation, the Company recorded charges to "Interest and Other Financing Costs, net" in the Condensed Consolidated Statements of Income for the nine months ended June 30, 2017 of approximately $2.9 million for the changes in market value of the interest rate swaps. 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 ($7.4) 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 June 30, 2017 and September 30, 2016 , respectively. As of June 30, 2017 , such amount principally represents the fair value of the original interest rate swap agreements on the de-designation date, which will be recognized in income over the original anticipated cash flow period. The hedge ineffectiveness for these cash flow hedging instruments during the nine months ended June 30, 2017 and July 1, 2016 was not material. 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 June 30, 2017 July 1, 2016 Interest rate swap agreements $ (2,721 ) $ (8,947 ) Nine Months Ended June 30, 2017 July 1, 2016 Interest rate swap agreements $ 33,261 $ (23,916 ) Cross currency swap agreements — (2,116 ) $ 33,261 $ (26,032 ) 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 June 30, 2017 , the Company has contracts for approximately 20.2 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 loss of approximately $2.6 million and approximately $3.6 million for the three and nine months ended June 30, 2017 , respectively. The impact on earnings related to the change in fair value of these unsettled contracts was a gain of approximately $10.7 million and $7.9 million for the three and nine months ended July 1, 2016 , respectively. The change in fair value for unsettled contracts is included in "Selling and general corporate expenses" in the Condensed Consolidated Statements of Income. When the contracts settle, the gain or loss is recorded to"Costs of services provided" in the Condensed Consolidated Statements of Income. As of June 30, 2017 , the Company had foreign currency forward exchange contracts outstanding with notional amounts of €47.0 million , £50.3 million and CAD 14.0 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 June 30, 2017 September 30, 2016 ASSETS Not designated as hedging instruments: Gasoline and diesel fuel agreements Prepayments and other current assets $ 102 $ 3,878 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accrued expenses and other current liabilities $ 1,210 $ 5,929 Interest rate swap agreements Other Noncurrent Liabilities 12,271 34,919 13,481 40,848 Not designated as hedging instruments: Foreign currency forward exchange contracts Accounts payable 178 447 $ 13,659 $ 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 June 30, 2017 July 1, 2016 Designated as hedging instruments: Interest rate swap agreements Interest expense $ 3,732 $ 8,217 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 2,404 $ (8,997 ) Foreign currency forward exchange contracts Interest expense 1,673 (4,441 ) 4,077 (13,438 ) $ 7,809 $ (5,221 ) Nine Months Ended Income Statement Location June 30, 2017 July 1, 2016 Designated as hedging instruments: Interest rate swap agreements Interest Expense $ 14,288 $ 26,322 Cross currency swap agreements Interest Expense — 2,061 14,288 28,383 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 2,787 $ (1,921 ) Foreign currency forward exchange contracts Interest Expense (3,134 ) (5,216 ) (347 ) (7,137 ) $ 13,941 $ 21,246 At June 30, 2017 , 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 $2.9 million . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY: During the nine months ended June 30, 2017 and July 1, 2016 , the Company paid dividends of approximately $75.5 million and $68.9 million to its stockholders, respectively. On August 2, 2017, the Company's Board declared a $0.103 dividend per share of common stock, payable on September 5, 2017, to shareholders of record on the close of business on August 16, 2017. During fiscal 2017, the Board of Directors authorized a new share repurchase program providing for purchases of up to $250 million of Aramark common stock over the next two years, pursuant to which the Company repurchased approximately 2.8 million shares of its common stock for $100.0 million in the second quarter of fiscal 2017. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Jun. 30, 2017 | |
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 Nine Months Ended June 30, 2017 July 1, 2016 June 30, 2017 July 1, 2016 TBOs $ 5.2 $ 4.8 $ 15.7 $ 14.4 RSUs 5.0 5.3 16.4 16.4 PSUs 5.0 3.4 16.4 10.7 Deferred Stock and Other Units 0.4 0.7 1.8 2.1 $ 15.6 $ 14.2 $ 50.3 $ 43.6 Taxes related to share-based compensation $ 5.7 $ 5.5 $ 18.6 $ 17.0 The below table summarizes the number of shares granted and the weighted-average grant-date fair value per unit during the nine months ended June 30, 2017 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 2.7 $ 8.47 RSUs 1.4 $ 34.09 PSUs 0.4 $ 34.12 4.5 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jun. 30, 2017 | |
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 Nine Months Ended June 30, 2017 July 1, 2016 June 30, 2017 July 1, 2016 Earnings: Net income attributable to Aramark stockholders $ 65,295 $ 44,765 $ 260,785 $ 204,462 Shares: Basic weighted-average shares outstanding 244,266 242,831 244,399 241,740 Effect of dilutive securities 6,890 6,226 7,149 6,582 Diluted weighted-average shares outstanding 251,156 249,057 251,548 248,322 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 0.27 $ 0.18 $ 1.07 $ 0.85 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 0.26 $ 0.18 $ 1.04 $ 0.82 Share-based awards to purchase 3.7 million and 2.4 million shares were outstanding for the three months ended June 30, 2017 and July 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 1.2 million shares and 0.7 million shares were outstanding for the three month periods of June 30, 2017 and July 1, 2016 , respectively, but were not included in the computation of diluted earnings per common share, as the performance targets were not yet met. Share-based awards to purchase 3.9 million and 3.4 million shares were outstanding for the nine months ended June 30, 2017 and July 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 1.2 million shares and 0.7 million shares were outstanding for the nine month period of June 30, 2017 and July 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 | 9 Months Ended |
Jun. 30, 2017 | |
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 $94.6 million at June 30, 2017 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 June 30, 2017 . 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 | 9 Months Ended |
Jun. 30, 2017 | |
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 8). In the Company's 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 June 30, 2017 July 1, 2016 FSS North America $ 2,491.6 $ 2,487.9 FSS International 713.9 709.7 Uniform 387.8 389.3 $ 3,593.3 $ 3,586.9 Operating Income Three Months Ended June 30, 2017 July 1, 2016 FSS North America $ 120.1 $ 100.7 FSS International 25.8 38.5 Uniform 45.0 52.2 190.9 191.4 Corporate (36.2 ) (22.1 ) Operating Income 154.7 169.3 Interest and Other Financing Costs, net (61.5 ) (103.7 ) Income Before Income Taxes $ 93.2 $ 65.6 Sales Nine Months Ended June 30, 2017 July 1, 2016 FSS North America $ 7,713.9 $ 7,630.7 FSS International 2,065.5 2,068.7 Uniform 1,170.9 1,172.6 $ 10,950.3 $ 10,872.0 Operating Income Nine Months Ended June 30, 2017 July 1, 2016 FSS North America $ 457.3 $ 406.3 FSS International 88.6 93.0 Uniform 144.2 146.3 690.1 645.6 Corporate (99.9 ) (90.1 ) Operating Income 590.2 555.5 Interest and Other Financing Costs, net (224.8 ) (246.8 ) Income Before Income Taxes $ 365.4 $ 308.7 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Financial Liabilities | 9 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and September 30, 2016 was $5,680.8 million and $5,365.6 million , respectively. The carrying value of the Company's debt at June 30, 2017 and September 30, 2016 was $5,514.4 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 have been classified as level 2 in the fair value hierarchy levels. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements of Aramark and Subsidiaries | 9 Months Ended |
Jun. 30, 2017 | |
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. The condensed consolidating financial statements are presented for: (i) Aramark (the "Parent"); (ii) Aramark Services, Inc. and Aramark International Finance S.à r.l. (the "Issuers"); (iii) the guarantors; (iv) the non guarantors; (v) elimination entries necessary to consolidate the Parent with the Issuers, the guarantor and non guarantors; and (vi) the Company on a consolidated basis. Each of the guarantors is wholly-owned, directly or indirectly, by the Company. All other subsidiaries of the Company, either direct or indirect, are non guarantors and do not guarantee the 2024 Notes, the 2026 Notes and the Notes . The guarantors also guarantee certain other debt. See note 5 for additional descriptions of the Notes. 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. CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 26,162 $ 30,995 $ 97,512 $ — $ 154,674 Receivables — 941 377,810 1,154,128 — 1,532,879 Inventories — 15,824 474,963 76,777 — 567,564 Prepayments and other current assets — 14,079 76,477 118,769 — 209,325 Total current assets 5 57,006 960,245 1,447,186 — 2,464,442 Property and Equipment, net — 30,635 748,979 201,922 — 981,536 Goodwill — 173,104 4,071,585 457,708 — 4,702,397 Investment in and Advances to Subsidiaries 2,322,762 5,803,683 462,014 915,177 (9,503,636 ) — Other Intangible Assets — 29,684 969,692 122,165 — 1,121,541 Other Assets — 80,217 1,034,314 267,926 (2,002 ) 1,380,455 $ 2,322,767 $ 6,174,329 $ 8,246,829 $ 3,412,084 $ (9,505,638 ) $ 10,650,371 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 50,988 $ 15,751 $ 7,498 $ — $ 74,237 Accounts payable — 133,216 318,097 277,728 — 729,041 Accrued expenses and other current liabilities — 203,851 588,006 306,679 88 1,098,624 Total current liabilities — 388,055 921,854 591,905 88 1,901,902 Long-term Borrowings — 4,928,734 62,351 449,058 — 5,440,143 Deferred Income Taxes and Other Noncurrent Liabilities — 429,342 516,552 29,821 — 975,715 Intercompany Payable — — 5,276,339 1,018,040 (6,294,379 ) — Redeemable Noncontrolling Interest — — 9,844 — — 9,844 Total Stockholders' Equity 2,322,767 428,198 1,459,889 1,323,260 (3,211,347 ) 2,322,767 $ 2,322,767 $ 6,174,329 $ 8,246,829 $ 3,412,084 $ (9,505,638 ) $ 10,650,371 CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. 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 June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Sales $ — $ 274,030 $ 2,346,917 $ 972,330 $ — $ 3,593,277 Costs and Expenses: Cost of services provided — 247,571 2,082,456 902,339 — 3,232,366 Depreciation and amortization — 4,288 104,394 17,758 — 126,440 Selling and general corporate expenses — 37,969 35,189 6,634 — 79,792 Interest and other financing costs, net — 58,831 (847 ) 3,499 — 61,483 Expense allocations — (67,250 ) 62,913 4,337 — — — 281,409 2,284,105 934,567 — 3,500,081 Income (Loss) before Income Tax — (7,379 ) 62,812 37,763 — 93,196 Provision (Benefit) for Income Taxes — (3,087 ) 17,424 13,495 — 27,832 Equity in Net Income of Subsidiaries 65,295 — — — (65,295 ) — Net income (loss) 65,295 (4,292 ) 45,388 24,268 (65,295 ) 65,364 Less: Net income attributable to noncontrolling interest — — 69 — — 69 Net income (loss) attributable to Aramark stockholders 65,295 (4,292 ) 45,319 24,268 (65,295 ) 65,295 Other comprehensive income, net of tax 17,574 4,034 1,495 57,622 (63,151 ) 17,574 Comprehensive income (loss) attributable to Aramark stockholders $ 82,869 $ (258 ) $ 46,814 $ 81,890 $ (128,446 ) $ 82,869 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the nine months ended June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Sales $ — $ 785,435 $ 7,310,795 $ 2,854,058 $ — $ 10,950,288 Costs and Expenses: Cost of services provided — 713,520 6,404,749 2,639,623 — 9,757,892 Depreciation and amortization — 12,851 313,350 52,057 — 378,258 Selling and general corporate expenses — 105,283 102,978 15,723 — 223,984 Interest and other financing costs, net — 212,651 (2,207 ) 14,347 — 224,791 Expense allocations — (210,077 ) 201,245 8,832 — — — 834,228 7,020,115 2,730,582 — 10,584,925 Income (Loss) before Income Tax — (48,793 ) 290,680 123,476 — 365,363 Provision (Benefit) for Income Taxes — (19,186 ) 82,727 40,793 — 104,334 Equity in Net Income of Subsidiaries 260,785 — — — (260,785 ) — Net income (loss) 260,785 (29,607 ) 207,953 82,683 (260,785 ) 261,029 Less: Net income attributable to noncontrolling interest — — 244 — — 244 Net income (loss) attributable to Aramark stockholders 260,785 (29,607 ) 207,709 82,683 (260,785 ) 260,785 Other comprehensive income, net of tax 24,710 42,069 172 13,955 (56,196 ) 24,710 Comprehensive income attributable to Aramark stockholders $ 285,495 $ 12,462 $ 207,881 $ 96,638 $ (316,981 ) $ 285,495 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended July 1, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Sales $ — $ 263,378 $ 2,406,759 $ 916,771 $ — $ 3,586,908 Costs and Expenses: Cost of services provided — 242,148 2,169,767 821,969 — 3,233,884 Depreciation and amortization — 3,890 101,569 16,904 — 122,363 Selling and general corporate expenses — 24,167 32,599 4,551 — 61,317 Interest and other financing costs — 98,762 (653 ) 5,655 — 103,764 Expense allocations (95,447 ) 80,109 15,338 — — — 273,520 2,383,391 864,417 — 3,521,328 Income (Loss) before Income Tax — (10,142 ) 23,368 52,354 — 65,580 Provision (Benefit) for Income Taxes — (3,718 ) 6,218 18,222 — 20,722 Equity in Net Income of Subsidiaries 44,765 — — — (44,765 ) — Net income (loss) 44,765 (6,424 ) 17,150 34,132 (44,765 ) 44,858 Less: Net income attributable to noncontrolling interest — — 93 — — 93 Net income (loss) attributable to Aramark stockholders 44,765 (6,424 ) 17,057 34,132 (44,765 ) 44,765 Other comprehensive income (loss), net of tax (7,929 ) (10,635 ) (3,010 ) (2,356 ) 16,001 (7,929 ) Comprehensive income (loss) attributable to Aramark stockholders $ 36,836 $ (17,059 ) $ 14,047 $ 31,776 $ (28,764 ) $ 36,836 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the nine months ended July 1, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Sales $ — $ 773,795 $ 7,357,628 $ 2,740,582 $ — $ 10,872,005 Costs and Expenses: Cost of services provided — 712,877 6,503,117 2,522,123 — 9,738,117 Depreciation and amortization — 11,758 307,149 51,265 — 370,172 Selling and general corporate expenses — 96,596 97,575 13,994 — 208,165 Interest and other financing costs — 229,226 (1,813 ) 19,422 — 246,835 Expense allocations — (250,932 ) 222,588 28,344 — — — 799,525 7,128,616 2,635,148 — 10,563,289 Income (Loss) before Income Tax — (25,730 ) 229,012 105,434 — 308,716 Provision (Benefit) for Income Taxes — (8,642 ) 75,537 37,030 — 103,925 Equity in Net Income of Subsidiaries 204,462 — — — (204,462 ) — Net income (loss) 204,462 (17,088 ) 153,475 68,404 (204,462 ) 204,791 Less: Net income attributable to noncontrolling interest — — 329 — — 329 Net income (loss) attributable to Aramark stockholders 204,462 (17,088 ) 153,146 68,404 (204,462 ) 204,462 Other comprehensive income (loss), net of tax 5,541 (19,076 ) (6,292 ) 27,574 (2,206 ) 5,541 Comprehensive income (loss) attributable to Aramark stockholders $ 210,003 $ (36,164 ) $ 146,854 $ 95,978 $ (206,668 ) $ 210,003 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Net cash provided by operating activities $ — $ 195,061 $ 202,300 $ 97,854 $ (46,026 ) $ 449,189 Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (15,791 ) (269,316 ) (55,187 ) — (340,294 ) Disposals of property and equipment — 150 12,624 2,143 — 14,917 Acquisitions of businesses, net of cash acquired — — (88,313 ) (41,781 ) — (130,094 ) Other investing activities — (84,408 ) 6,011 80,098 — 1,701 Net cash used in investing activities — (100,049 ) (338,994 ) (14,727 ) — (453,770 ) Cash flows from financing activities: Proceeds from long-term borrowings — 3,606,864 — 100,544 — 3,707,408 Payments of long-term borrowings — (3,228,896 ) (14,492 ) (318,112 ) — (3,561,500 ) Net change in funding under the Receivables Facility — — — 82,000 — 82,000 Payments of dividends — (75,543 ) — — — (75,543 ) Proceeds from issuance of common stock — 23,048 — — — 23,048 Repurchase of stock — (100,000 ) — — — (100,000 ) Other financing activities — (73,175 ) 4,632 (195 ) — (68,738 ) Change in intercompany, net — (268,998 ) 146,205 76,767 46,026 — Net cash provided by (used in) financing activities — (116,700 ) 136,345 (58,996 ) 46,026 6,675 Increase (decrease) in cash and cash equivalents — (21,688 ) (349 ) 24,131 — 2,094 Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 26,162 $ 30,995 $ 97,512 $ — $ 154,674 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended July 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Net cash provided by operating activities $ — $ 92,453 $ 149,945 $ 175,913 $ (7,771 ) $ 410,540 Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (16,741 ) (283,547 ) (49,882 ) — (350,170 ) Disposals of property and equipment — — — 18,029 — 18,029 Acquisitions of businesses, net of cash acquired — — (231 ) (59,146 ) — (59,377 ) Other investing activities — 1,213 7,200 (1,219 ) — 7,194 Net cash used in investing activities — (15,528 ) (276,578 ) (92,218 ) — (384,324 ) Cash flows from financing activities: Proceeds from long-term borrowings — 1,398,001 — 394 — 1,398,395 Payments of long-term borrowings — (1,111,793 ) (11,285 ) (122,371 ) — (1,245,449 ) Net change in funding under the Receivables Facility — — — (9,730 ) — (9,730 ) Payments of dividends — (68,873 ) — — — (68,873 ) Proceeds from issuance of common stock — 23,296 — — — 23,296 Other financing activities — (57,569 ) 8,256 (451 ) — (49,764 ) Change in intercompany, net — (228,093 ) 122,891 97,431 7,771 — Net cash provided by (used in) financing activities — (45,031 ) 119,862 (34,727 ) 7,771 47,875 Increase (decrease) in cash and cash equivalents — 31,894 (6,771 ) 48,968 — 74,091 Cash and cash equivalents, beginning of period 5 31,792 42,811 47,808 — 122,416 Cash and cash equivalents, end of period $ 5 $ 63,686 $ 36,040 $ 96,776 $ — $ 196,507 |
Basis of Presentation and Sum20
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2017 | |
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. 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 | New Accounting Standards Updates In May 2017, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") to clarify the determination of the customer of the operation services in a service concession arrangement. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption is permitted. The Company will adopt this standard in conjunction with the revenue recognition standard, as described below. The Company is currently evaluating the impact of the pronouncement. In May 2017, the FASB issued an ASU to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. 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 2017, the FASB issued an ASU to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. 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 February 2017, the FASB issued an ASU to clarify the accounting guidance for partial sales of nonfinancial assets. 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 January 2017, the FASB issued an 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 June 2016, the FASB issued an ASU to require entities to account for expected credit losses on financial instruments including trade receivables. 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 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 flows 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 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 was $6.2 million and $18.4 million o f excess tax benefit recorded as a reduction to the provision for income taxes for the three and nine months ended June 30, 2017 . 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 benefits of $18.4 million and $21.7 million f or share-based awards are included in operating activities, previously classified in financing activities, and approximately $22.7 million and $23.9 million of cash paid for employee taxes for withheld shares are inclu ded in financing activities, previously classified in operating activities, for the nine months ended June 30, 2017 and July 1, 2016 , respectively. As a result of the adoption, the excess tax benefits are no longer included in the calculation of diluted shares under the treasury stock method, which increased the diluted shares outstanding by approximately 1.4 million shares for both the three and nine months ended June 30, 2017 . 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 in the process of developing an inventory of its lease arrangements in order to determine the impact the adoption of this ASU will have on its condensed consolidated financial statements and related disclosures. Based on the assessment to date, the Company expects adoption of this standard to result in a material increase in lease-related assets and liabilities on its Condensed Consolidated Balance Sheets, but does not expect it to have a significant impact on its Condensed Consolidated Statements of Income or Cash Flows. 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 or loss (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 generally 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. |
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. |
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. |
Basis of Presentation and Sum21
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Comprehensive Loss | The summary of the components of comprehensive income (loss) is as follows (in thousands): Three Months Ended June 30, 2017 July 1, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 65,364 $ 44,858 Pension plan adjustments — — — (8,282 ) 2,899 (5,383 ) Foreign currency translation adjustments 14,529 2,465 16,994 4,142 (6,247 ) (2,105 ) Fair value of cash flow hedges 951 (371 ) 580 (730 ) 289 (441 ) Other comprehensive income (loss) 15,480 2,094 17,574 (4,870 ) (3,059 ) (7,929 ) Comprehensive income 82,938 36,929 Less: Net income attributable to noncontrolling interest 69 93 Comprehensive income attributable to Aramark stockholders $ 82,869 $ 36,836 Nine Months Ended June 30, 2017 July 1, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 261,029 $ 204,791 Pension plan adjustments — — — (8,282 ) 2,899 (5,383 ) Foreign currency translation adjustments (11,429 ) 7,171 (4,258 ) 17,190 (13,535 ) 3,655 Fair value of cash flow hedges 47,489 (18,521 ) 28,968 2,351 4,918 7,269 Other comprehensive income (loss) 36,060 (11,350 ) 24,710 11,259 (5,718 ) 5,541 Comprehensive income 285,739 210,332 Less: Net income attributable to noncontrolling interest 244 329 Comprehensive income attributable to Aramark stockholders $ 285,495 $ 210,003 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): June 30, 2017 September 30, 2016 Pension plan adjustments $ (65,267 ) $ (65,267 ) Foreign currency translation adjustments (72,719 ) (68,461 ) Cash flow hedges (7,405 ) (36,373 ) Share of equity investee's accumulated other comprehensive loss (10,682 ) (10,682 ) $ (156,073 ) $ (180,783 ) |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Assets by Segment | Changes in total goodwill during the nine months ended June 30, 2017 follow (in thousands): Segment September 30, 2016 Acquisition Translation June 30, 2017 FSS North America $ 3,635,614 $ 32,497 $ (1,138 ) $ 3,666,973 FSS International 418,488 32,022 6,029 456,539 Uniform 574,779 4,106 — 578,885 $ 4,628,881 $ 68,625 $ 4,891 $ 4,702,397 |
Schedule of Other Intangible Assets | Other intangible assets consist of the following (in thousands): June 30, 2017 September 30, 2016 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,357,151 $ (1,034,710 ) $ 322,441 $ 1,793,739 $ (1,462,058 ) $ 331,681 Trade names 799,100 — 799,100 781,835 (1,633 ) 780,202 $ 2,156,251 $ (1,034,710 ) $ 1,121,541 $ 2,575,574 $ (1,463,691 ) $ 1,111,883 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term borrowings, net, are summarized in the following table (in thousands): June 30, 2017 September 30, 2016 Senior secured revolving credit facility, due March 2022 $ 155,700 $ — Senior secured term loan facility, due September 2019 — 840,305 Senior secured term loan facility, due February 2021 — 2,450,749 Senior secured term loan facility, due March 2022 835,607 — Senior secured term loan facility, due March 2024 1,736,423 — 5.750% senior notes, due March 2020 — 227,032 5.125% senior notes, due January 2024 904,014 905,095 4.750% senior notes, due June 2026 493,320 492,886 5.000% senior notes, due April 2025 589,450 — 3.125% senior notes, due April 2025 366,822 — Receivables Facility, due May 2019 350,000 268,000 Capital leases 78,447 78,615 Other 4,597 7,354 5,514,380 5,270,036 Less—current portion (74,237 ) (46,522 ) $ 5,440,143 $ 5,223,514 |
Schedule of Maturities of Long-term Debt | After giving effect to the refinancing activity during the second quarter of fiscal 2017, at June 30, 2017 , annual maturities on long-term borrowings maturing between fiscal years 2017 and 2022 and thereafter (excluding the $49.0 million reduction to long-term borrowings from debt issuance costs and the increase of $15.6 million from the premium on the 2024 Notes) are as follows (in thousands): 2017 $ 20,297 2018 78,204 2019 414,698 2020 117,647 2021 125,111 2022 766,729 Thereafter 4,025,127 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 July 1, 2016 Interest rate swap agreements $ (2,721 ) $ (8,947 ) Nine Months Ended June 30, 2017 July 1, 2016 Interest rate swap agreements $ 33,261 $ (23,916 ) Cross currency swap agreements — (2,116 ) $ 33,261 $ (26,032 ) |
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 June 30, 2017 September 30, 2016 ASSETS Not designated as hedging instruments: Gasoline and diesel fuel agreements Prepayments and other current assets $ 102 $ 3,878 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accrued expenses and other current liabilities $ 1,210 $ 5,929 Interest rate swap agreements Other Noncurrent Liabilities 12,271 34,919 13,481 40,848 Not designated as hedging instruments: Foreign currency forward exchange contracts Accounts payable 178 447 $ 13,659 $ 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 June 30, 2017 July 1, 2016 Designated as hedging instruments: Interest rate swap agreements Interest expense $ 3,732 $ 8,217 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 2,404 $ (8,997 ) Foreign currency forward exchange contracts Interest expense 1,673 (4,441 ) 4,077 (13,438 ) $ 7,809 $ (5,221 ) Nine Months Ended Income Statement Location June 30, 2017 July 1, 2016 Designated as hedging instruments: Interest rate swap agreements Interest Expense $ 14,288 $ 26,322 Cross currency swap agreements Interest Expense — 2,061 14,288 28,383 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 2,787 $ (1,921 ) Foreign currency forward exchange contracts Interest Expense (3,134 ) (5,216 ) (347 ) (7,137 ) $ 13,941 $ 21,246 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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 Nine Months Ended June 30, 2017 July 1, 2016 June 30, 2017 July 1, 2016 TBOs $ 5.2 $ 4.8 $ 15.7 $ 14.4 RSUs 5.0 5.3 16.4 16.4 PSUs 5.0 3.4 16.4 10.7 Deferred Stock and Other Units 0.4 0.7 1.8 2.1 $ 15.6 $ 14.2 $ 50.3 $ 43.6 Taxes related to share-based compensation $ 5.7 $ 5.5 $ 18.6 $ 17.0 |
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 nine months ended June 30, 2017 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 2.7 $ 8.47 RSUs 1.4 $ 34.09 PSUs 0.4 $ 34.12 4.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
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 Nine Months Ended June 30, 2017 July 1, 2016 June 30, 2017 July 1, 2016 Earnings: Net income attributable to Aramark stockholders $ 65,295 $ 44,765 $ 260,785 $ 204,462 Shares: Basic weighted-average shares outstanding 244,266 242,831 244,399 241,740 Effect of dilutive securities 6,890 6,226 7,149 6,582 Diluted weighted-average shares outstanding 251,156 249,057 251,548 248,322 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 0.27 $ 0.18 $ 1.07 $ 0.85 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 0.26 $ 0.18 $ 1.04 $ 0.82 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Segment | inancial information by segment follows (in millions): Sales Three Months Ended June 30, 2017 July 1, 2016 FSS North America $ 2,491.6 $ 2,487.9 FSS International 713.9 709.7 Uniform 387.8 389.3 $ 3,593.3 $ 3,586.9 Operating Income Three Months Ended June 30, 2017 July 1, 2016 FSS North America $ 120.1 $ 100.7 FSS International 25.8 38.5 Uniform 45.0 52.2 190.9 191.4 Corporate (36.2 ) (22.1 ) Operating Income 154.7 169.3 Interest and Other Financing Costs, net (61.5 ) (103.7 ) Income Before Income Taxes $ 93.2 $ 65.6 Sales Nine Months Ended June 30, 2017 July 1, 2016 FSS North America $ 7,713.9 $ 7,630.7 FSS International 2,065.5 2,068.7 Uniform 1,170.9 1,172.6 $ 10,950.3 $ 10,872.0 |
Schedule of Operating Income by Segment | Operating Income Three Months Ended June 30, 2017 July 1, 2016 FSS North America $ 120.1 $ 100.7 FSS International 25.8 38.5 Uniform 45.0 52.2 190.9 191.4 Corporate (36.2 ) (22.1 ) Operating Income 154.7 169.3 Interest and Other Financing Costs, net (61.5 ) (103.7 ) Income Before Income Taxes $ 93.2 $ 65.6 Operating Income Nine Months Ended June 30, 2017 July 1, 2016 FSS North America $ 457.3 $ 406.3 FSS International 88.6 93.0 Uniform 144.2 146.3 690.1 645.6 Corporate (99.9 ) (90.1 ) Operating Income 590.2 555.5 Interest and Other Financing Costs, net (224.8 ) (246.8 ) Income Before Income Taxes $ 365.4 $ 308.7 |
Condensed Consolidating Finan28
Condensed Consolidating Financial Statements of Aramark and Subsidiaries (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Consolidated Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 26,162 $ 30,995 $ 97,512 $ — $ 154,674 Receivables — 941 377,810 1,154,128 — 1,532,879 Inventories — 15,824 474,963 76,777 — 567,564 Prepayments and other current assets — 14,079 76,477 118,769 — 209,325 Total current assets 5 57,006 960,245 1,447,186 — 2,464,442 Property and Equipment, net — 30,635 748,979 201,922 — 981,536 Goodwill — 173,104 4,071,585 457,708 — 4,702,397 Investment in and Advances to Subsidiaries 2,322,762 5,803,683 462,014 915,177 (9,503,636 ) — Other Intangible Assets — 29,684 969,692 122,165 — 1,121,541 Other Assets — 80,217 1,034,314 267,926 (2,002 ) 1,380,455 $ 2,322,767 $ 6,174,329 $ 8,246,829 $ 3,412,084 $ (9,505,638 ) $ 10,650,371 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 50,988 $ 15,751 $ 7,498 $ — $ 74,237 Accounts payable — 133,216 318,097 277,728 — 729,041 Accrued expenses and other current liabilities — 203,851 588,006 306,679 88 1,098,624 Total current liabilities — 388,055 921,854 591,905 88 1,901,902 Long-term Borrowings — 4,928,734 62,351 449,058 — 5,440,143 Deferred Income Taxes and Other Noncurrent Liabilities — 429,342 516,552 29,821 — 975,715 Intercompany Payable — — 5,276,339 1,018,040 (6,294,379 ) — Redeemable Noncontrolling Interest — — 9,844 — — 9,844 Total Stockholders' Equity 2,322,767 428,198 1,459,889 1,323,260 (3,211,347 ) 2,322,767 $ 2,322,767 $ 6,174,329 $ 8,246,829 $ 3,412,084 $ (9,505,638 ) $ 10,650,371 CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. 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 June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Sales $ — $ 274,030 $ 2,346,917 $ 972,330 $ — $ 3,593,277 Costs and Expenses: Cost of services provided — 247,571 2,082,456 902,339 — 3,232,366 Depreciation and amortization — 4,288 104,394 17,758 — 126,440 Selling and general corporate expenses — 37,969 35,189 6,634 — 79,792 Interest and other financing costs, net — 58,831 (847 ) 3,499 — 61,483 Expense allocations — (67,250 ) 62,913 4,337 — — — 281,409 2,284,105 934,567 — 3,500,081 Income (Loss) before Income Tax — (7,379 ) 62,812 37,763 — 93,196 Provision (Benefit) for Income Taxes — (3,087 ) 17,424 13,495 — 27,832 Equity in Net Income of Subsidiaries 65,295 — — — (65,295 ) — Net income (loss) 65,295 (4,292 ) 45,388 24,268 (65,295 ) 65,364 Less: Net income attributable to noncontrolling interest — — 69 — — 69 Net income (loss) attributable to Aramark stockholders 65,295 (4,292 ) 45,319 24,268 (65,295 ) 65,295 Other comprehensive income, net of tax 17,574 4,034 1,495 57,622 (63,151 ) 17,574 Comprehensive income (loss) attributable to Aramark stockholders $ 82,869 $ (258 ) $ 46,814 $ 81,890 $ (128,446 ) $ 82,869 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the nine months ended June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Sales $ — $ 785,435 $ 7,310,795 $ 2,854,058 $ — $ 10,950,288 Costs and Expenses: Cost of services provided — 713,520 6,404,749 2,639,623 — 9,757,892 Depreciation and amortization — 12,851 313,350 52,057 — 378,258 Selling and general corporate expenses — 105,283 102,978 15,723 — 223,984 Interest and other financing costs, net — 212,651 (2,207 ) 14,347 — 224,791 Expense allocations — (210,077 ) 201,245 8,832 — — — 834,228 7,020,115 2,730,582 — 10,584,925 Income (Loss) before Income Tax — (48,793 ) 290,680 123,476 — 365,363 Provision (Benefit) for Income Taxes — (19,186 ) 82,727 40,793 — 104,334 Equity in Net Income of Subsidiaries 260,785 — — — (260,785 ) — Net income (loss) 260,785 (29,607 ) 207,953 82,683 (260,785 ) 261,029 Less: Net income attributable to noncontrolling interest — — 244 — — 244 Net income (loss) attributable to Aramark stockholders 260,785 (29,607 ) 207,709 82,683 (260,785 ) 260,785 Other comprehensive income, net of tax 24,710 42,069 172 13,955 (56,196 ) 24,710 Comprehensive income attributable to Aramark stockholders $ 285,495 $ 12,462 $ 207,881 $ 96,638 $ (316,981 ) $ 285,495 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended July 1, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Sales $ — $ 263,378 $ 2,406,759 $ 916,771 $ — $ 3,586,908 Costs and Expenses: Cost of services provided — 242,148 2,169,767 821,969 — 3,233,884 Depreciation and amortization — 3,890 101,569 16,904 — 122,363 Selling and general corporate expenses — 24,167 32,599 4,551 — 61,317 Interest and other financing costs — 98,762 (653 ) 5,655 — 103,764 Expense allocations (95,447 ) 80,109 15,338 — — — 273,520 2,383,391 864,417 — 3,521,328 Income (Loss) before Income Tax — (10,142 ) 23,368 52,354 — 65,580 Provision (Benefit) for Income Taxes — (3,718 ) 6,218 18,222 — 20,722 Equity in Net Income of Subsidiaries 44,765 — — — (44,765 ) — Net income (loss) 44,765 (6,424 ) 17,150 34,132 (44,765 ) 44,858 Less: Net income attributable to noncontrolling interest — — 93 — — 93 Net income (loss) attributable to Aramark stockholders 44,765 (6,424 ) 17,057 34,132 (44,765 ) 44,765 Other comprehensive income (loss), net of tax (7,929 ) (10,635 ) (3,010 ) (2,356 ) 16,001 (7,929 ) Comprehensive income (loss) attributable to Aramark stockholders $ 36,836 $ (17,059 ) $ 14,047 $ 31,776 $ (28,764 ) $ 36,836 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the nine months ended July 1, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Sales $ — $ 773,795 $ 7,357,628 $ 2,740,582 $ — $ 10,872,005 Costs and Expenses: Cost of services provided — 712,877 6,503,117 2,522,123 — 9,738,117 Depreciation and amortization — 11,758 307,149 51,265 — 370,172 Selling and general corporate expenses — 96,596 97,575 13,994 — 208,165 Interest and other financing costs — 229,226 (1,813 ) 19,422 — 246,835 Expense allocations — (250,932 ) 222,588 28,344 — — — 799,525 7,128,616 2,635,148 — 10,563,289 Income (Loss) before Income Tax — (25,730 ) 229,012 105,434 — 308,716 Provision (Benefit) for Income Taxes — (8,642 ) 75,537 37,030 — 103,925 Equity in Net Income of Subsidiaries 204,462 — — — (204,462 ) — Net income (loss) 204,462 (17,088 ) 153,475 68,404 (204,462 ) 204,791 Less: Net income attributable to noncontrolling interest — — 329 — — 329 Net income (loss) attributable to Aramark stockholders 204,462 (17,088 ) 153,146 68,404 (204,462 ) 204,462 Other comprehensive income (loss), net of tax 5,541 (19,076 ) (6,292 ) 27,574 (2,206 ) 5,541 Comprehensive income (loss) attributable to Aramark stockholders $ 210,003 $ (36,164 ) $ 146,854 $ 95,978 $ (206,668 ) $ 210,003 |
Schedule of Condensed Consolidated Cash Flow Statement | Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Sales $ — $ 773,795 $ 7,357,628 $ 2,740,582 $ — $ 10,872,005 Costs and Expenses: Cost of services provided — 712,877 6,503,117 2,522,123 — 9,738,117 Depreciation and amortization — 11,758 307,149 51,265 — 370,172 Selling and general corporate expenses — 96,596 97,575 13,994 — 208,165 Interest and other financing costs — 229,226 (1,813 ) 19,422 — 246,835 Expense allocations — (250,932 ) 222,588 28,344 — — — 799,525 7,128,616 2,635,148 — 10,563,289 Income (Loss) before Income Tax — (25,730 ) 229,012 105,434 — 308,716 Provision (Benefit) for Income Taxes — (8,642 ) 75,537 37,030 — 103,925 Equity in Net Income of Subsidiaries 204,462 — — — (204,462 ) — Net income (loss) 204,462 (17,088 ) 153,475 68,404 (204,462 ) 204,791 Less: Net income attributable to noncontrolling interest — — 329 — — 329 Net income (loss) attributable to Aramark stockholders 204,462 (17,088 ) 153,146 68,404 (204,462 ) 204,462 Other comprehensive income (loss), net of tax 5,541 (19,076 ) (6,292 ) 27,574 (2,206 ) 5,541 Comprehensive income (loss) attributable to Aramark stockholders $ 210,003 $ (36,164 ) $ 146,854 $ 95,978 $ (206,668 ) $ 210,003 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended June 30, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Net cash provided by operating activities $ — $ 195,061 $ 202,300 $ 97,854 $ (46,026 ) $ 449,189 Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (15,791 ) (269,316 ) (55,187 ) — (340,294 ) Disposals of property and equipment — 150 12,624 2,143 — 14,917 Acquisitions of businesses, net of cash acquired — — (88,313 ) (41,781 ) — (130,094 ) Other investing activities — (84,408 ) 6,011 80,098 — 1,701 Net cash used in investing activities — (100,049 ) (338,994 ) (14,727 ) — (453,770 ) Cash flows from financing activities: Proceeds from long-term borrowings — 3,606,864 — 100,544 — 3,707,408 Payments of long-term borrowings — (3,228,896 ) (14,492 ) (318,112 ) — (3,561,500 ) Net change in funding under the Receivables Facility — — — 82,000 — 82,000 Payments of dividends — (75,543 ) — — — (75,543 ) Proceeds from issuance of common stock — 23,048 — — — 23,048 Repurchase of stock — (100,000 ) — — — (100,000 ) Other financing activities — (73,175 ) 4,632 (195 ) — (68,738 ) Change in intercompany, net — (268,998 ) 146,205 76,767 46,026 — Net cash provided by (used in) financing activities — (116,700 ) 136,345 (58,996 ) 46,026 6,675 Increase (decrease) in cash and cash equivalents — (21,688 ) (349 ) 24,131 — 2,094 Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 26,162 $ 30,995 $ 97,512 $ — $ 154,674 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended July 1, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Net cash provided by operating activities $ — $ 92,453 $ 149,945 $ 175,913 $ (7,771 ) $ 410,540 Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (16,741 ) (283,547 ) (49,882 ) — (350,170 ) Disposals of property and equipment — — — 18,029 — 18,029 Acquisitions of businesses, net of cash acquired — — (231 ) (59,146 ) — (59,377 ) Other investing activities — 1,213 7,200 (1,219 ) — 7,194 Net cash used in investing activities — (15,528 ) (276,578 ) (92,218 ) — (384,324 ) Cash flows from financing activities: Proceeds from long-term borrowings — 1,398,001 — 394 — 1,398,395 Payments of long-term borrowings — (1,111,793 ) (11,285 ) (122,371 ) — (1,245,449 ) Net change in funding under the Receivables Facility — — — (9,730 ) — (9,730 ) Payments of dividends — (68,873 ) — — — (68,873 ) Proceeds from issuance of common stock — 23,296 — — — 23,296 Other financing activities — (57,569 ) 8,256 (451 ) — (49,764 ) Change in intercompany, net — (228,093 ) 122,891 97,431 7,771 — Net cash provided by (used in) financing activities — (45,031 ) 119,862 (34,727 ) 7,771 47,875 Increase (decrease) in cash and cash equivalents — 31,894 (6,771 ) 48,968 — 74,091 Cash and cash equivalents, beginning of period 5 31,792 42,811 47,808 — 122,416 Cash and cash equivalents, end of period $ 5 $ 63,686 $ 36,040 $ 96,776 $ — $ 196,507 |
Basis of Presentation and Sum29
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2017USD ($)countryshares | Jun. 30, 2017USD ($)countrysegment | Jul. 01, 2016USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Net cash provided by (used in) operating activities | $ 449,189 | $ 410,540 | |
Net cash provided by (used in) financing activities | (6,675) | (47,875) | |
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 | $ 6,200 | 18,400 | |
Net cash provided by (used in) operating activities | 21,700 | ||
Net cash provided by (used in) financing activities | 22,700 | $ 23,900 | |
Adjustment to diluted shares outstanding | shares | 1.4 | ||
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 | $ 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 | 17 |
Basis of Presentation and Sum30
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Pre-Tax Amount | ||||
Pension plan adjustments | $ 0 | $ (8,282) | $ 0 | $ (8,282) |
Foreign currency translation adjustments | 14,529 | 4,142 | (11,429) | 17,190 |
Fair value of cash flow hedges | 951 | (730) | 47,489 | 2,351 |
Other comprehensive income (loss) | 15,480 | (4,870) | 36,060 | 11,259 |
Tax Effect | ||||
Pension plan adjustments | 0 | 2,899 | 0 | 2,899 |
Foreign currency translation adjustments | 2,465 | (6,247) | 7,171 | (13,535) |
Fair value of cash flow hedges | (371) | 289 | (18,521) | 4,918 |
Other comprehensive income (loss) | 2,094 | (3,059) | (11,350) | (5,718) |
After-Tax Amount | ||||
Net income | 65,364 | 44,858 | 261,029 | 204,791 |
Pension plan adjustments | 0 | (5,383) | 0 | (5,383) |
Foreign currency translation adjustments | 16,994 | (2,105) | (4,258) | 3,655 |
Fair value of cash flow hedges | 580 | (441) | 28,968 | 7,269 |
Other comprehensive income (loss), net of tax | 17,574 | (7,929) | 24,710 | 5,541 |
Comprehensive income | 82,938 | 36,929 | 285,739 | 210,332 |
Less: Net income attributable to noncontrolling interest | 69 | 93 | 244 | 329 |
Comprehensive income attributable to Aramark stockholders | $ 82,869 | $ 36,836 | $ 285,495 | $ 210,003 |
Basis of Presentation and Sum31
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Pension plan adjustments | $ (65,267) | $ (65,267) |
Foreign currency translation adjustments | (72,719) | (68,461) |
Cash flow hedges | (7,405) | (36,373) |
Share of equity investee's accumulated other comprehensive loss | (10,682) | (10,682) |
Total | $ (156,073) | $ (180,783) |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies - Other Assets (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 30, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capital contract investments | $ 900.1 | $ 865 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Apr. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Business Acquisition [Line Items] | |||
Payments to acquire businesses, net of cash acquired | $ 130,094 | $ 59,377 | |
Avoca Handweavers Limited | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | $ 65,800 | ||
Payments to acquire businesses, net of cash acquired | $ 59,200 |
Severance (Details)
Severance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||||
Severance and related costs accrual | $ 27.3 | $ 27.3 | $ 26.1 | ||
Other restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Severance costs | $ 18.4 | $ 1.9 | $ 18.4 | $ 9 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Schedule of Goodwill Assets by Segment (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | $ 4,628,881 |
Acquisition | 68,625 |
Translation | 4,891 |
Balance at the end of the period | 4,702,397 |
FSS North America | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 3,635,614 |
Acquisition | 32,497 |
Translation | (1,138) |
Balance at the end of the period | 3,666,973 |
FSS International | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 418,488 |
Acquisition | 32,022 |
Translation | 6,029 |
Balance at the end of the period | 456,539 |
Uniform | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 574,779 |
Acquisition | 4,106 |
Translation | 0 |
Balance at the end of the period | $ 578,885 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 |
Other Intangible Assets | ||
Gross Amount | $ 2,156,251 | $ 2,575,574 |
Accumulated Amortization | (1,034,710) | (1,463,691) |
Net Amount | 1,121,541 | 1,111,883 |
Customer Relationships | ||
Other Intangible Assets | ||
Gross Amount | 1,357,151 | 1,793,739 |
Accumulated Amortization | (1,034,710) | (1,462,058) |
Net Amount | 322,441 | 331,681 |
Trade names | ||
Other Intangible Assets | ||
Gross Amount | 799,100 | 781,835 |
Accumulated Amortization | 0 | (1,633) |
Net Amount | $ 799,100 | $ 780,202 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jul. 01, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 66.3 | $ 75.9 | |
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 | 14 years | ||
IPS Acquisition | Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Trade names acquired | $ 55.6 | ||
IPS Acquisition | Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Trade names acquired | $ 17.8 |
Borrowings (Schedule of Debt) (
Borrowings (Schedule of Debt) (Details) | Jun. 30, 2017USD ($) | Mar. 27, 2017EUR (€) | Mar. 22, 2017USD ($) | Sep. 30, 2016USD ($) | May 31, 2016USD ($) | Dec. 17, 2015USD ($) |
Debt Instrument [Line Items] | ||||||
Capital leases | $ 78,447,000 | $ 78,615,000 | ||||
Other | 4,597,000 | 7,354,000 | ||||
Debt and capital lease obligations | 5,514,380,000 | 5,270,036,000 | ||||
Less—current portion | (74,237,000) | (46,522,000) | ||||
Long-Term Borrowings | 5,440,143,000 | 5,223,514,000 | ||||
Receivables Facility, due May 2019 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 350,000,000 | 268,000,000 | ||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,000,000,000 | |||||
Senior Notes | 5.750% senior notes, due March 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 227,032,000 | ||||
Senior Notes | 5.125% senior notes, due January 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 904,014,000 | 905,095,000 | $ 400,000,000 | |||
Senior Notes | 4.750% senior notes, due June 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 493,320,000 | 492,886,000 | ||||
Senior Notes | 5.000% senior notes, due April 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 589,450,000 | $ 600,000,000 | 0 | |||
Senior Notes | 3.125% senior notes, due April 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 366,822,000 | € 325,000,000 | 0 | |||
Senior secured revolving credit facility, due March 2022 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 155,700,000 | 0 | ||||
Senior secured term loan facility, due September 2019 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 840,305,000 | ||||
Senior secured term loan facility, due February 2021 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 0 | 2,450,749,000 | ||||
Senior secured term loan facility, due March 2022 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 835,607,000 | 0 | ||||
Senior secured term loan facility, due March 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,736,423,000 | $ 0 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) ¥ in Millions, CAD in Millions | May 31, 2016USD ($) | Dec. 17, 2015USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jul. 01, 2016USD ($) | Jun. 30, 2017USD ($) | Jul. 01, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2017CAD | Jun. 30, 2017JPY (¥) | Mar. 27, 2017EUR (€) | Mar. 22, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Interest Paid | $ 147,300,000 | $ 174,000,000 | ||||||||||
Interest and other financing costs, net | $ 61,483,000 | $ 103,764,000 | $ 224,791,000 | 246,835,000 | ||||||||
5.0% and 3.125% Senior Notes Due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Change of control, optional redemption price, percentage | 101.00% | |||||||||||
Secured Debt | 5.000% senior notes, due April 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Payments of financing costs | $ 16,400,000 | |||||||||||
Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fee, effective rate | 0.30% | 0.30% | 0.30% | 0.30% | ||||||||
Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | Other Assets | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Payments of financing costs | $ 8,200,000 | |||||||||||
Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 1,000,000,000 | |||||||||||
Interest rate, effective percentage | 4.60% | |||||||||||
Deferred financing fees | $ 18,800,000 | |||||||||||
Senior Notes | 5.000% senior notes, due April 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 589,450,000 | $ 589,450,000 | $ 0 | $ 600,000,000 | ||||||||
Interest rate stated percentage | 5.00% | |||||||||||
Senior Notes | 3.125% senior notes, due April 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | 366,822,000 | 366,822,000 | 0 | € 325,000,000 | ||||||||
Interest rate stated percentage | 3.125% | |||||||||||
Senior Notes | 5.125% senior notes, due January 2024 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 400,000,000 | 904,014,000 | 904,014,000 | 905,095,000 | ||||||||
Interest rate stated percentage | 5.125% | |||||||||||
Deferred financing fees | 15,600,000 | 15,600,000 | ||||||||||
Payments of financing costs | $ 6,000,000 | |||||||||||
Senior Notes | 4.750% senior notes, due June 2026 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 493,320,000 | $ 493,320,000 | 492,886,000 | |||||||||
Interest rate stated percentage | 4.75% | |||||||||||
Senior Notes | 5.75% Senior Notes, due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate stated percentage | 5.75% | 5.75% | 5.75% | 5.75% | ||||||||
Repayments of debt | 771,200,000 | |||||||||||
Deferred financing fees | 22,200,000 | |||||||||||
Interest Paid | 11,100,000 | |||||||||||
Interest and other financing costs, net | 30,200,000 | |||||||||||
Debt issuance costs, net | 8,000,000 | |||||||||||
Senior Notes | 5.75% Senior Notes, due 2020 | Long-term Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issuance costs, net | 14,200,000 | |||||||||||
Senior Notes | Term Loan Facilities due 2019 and 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Write off of deferred debt issuance costs | $ 23,700,000 | |||||||||||
Senior Notes | 5.0% and 3.125% Senior Notes Due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Payments of financing costs | 15,100,000 | |||||||||||
Term Loan Facility, US Term Loan A, Due 2022 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 641,900,000 | 641,900,000 | ||||||||||
Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | 1,700,000,000 | $ 1,700,000,000 | ||||||||||
Deb prepayment premium, percent | 1.00% | |||||||||||
Term Loan Facility Due 2022 | Secured Debt | Canadian Dollar Denominated Term Loan, Canadian Subsidiary | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | 101,600,000 | $ 101,600,000 | CAD 131.7 | |||||||||
Term Loan Facility Due 2022 | Secured Debt | Yen denominated term loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | 98,600,000 | 98,600,000 | ¥ 11,079.2 | |||||||||
Senior secured revolving credit facility, due March 2022 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | 155,700,000 | 155,700,000 | 0 | |||||||||
Senior secured revolving credit facility, due March 2022 | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||||||||||
Senior secured revolving credit facility, due March 2022 | Line of Credit | Senior Secured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 250,000,000 | 250,000,000 | ||||||||||
Remaining borrowing capacity | 842,800,000 | 842,800,000 | ||||||||||
Secured Debt | 2017 Amendment Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 1,400,000,000 | $ 1,400,000,000 | ||||||||||
Line of credit facility, agreement terms, prepayment of outstanding term loans, nonordinary course asset sales, percentage | 100.00% | |||||||||||
Line of credit facility, agreement terms, prepayment of outstanding term loans, incurrence of debt, percentage | 100.00% | |||||||||||
Secured Debt | Foreign Line of Credit | 2017 Amendment Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 150,000,000 | $ 150,000,000 | ||||||||||
Senior secured term loan facility, due September 2019 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of debt | $ 194,100,000 | |||||||||||
Senior secured term loan facility, due September 2019 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 0 | $ 0 | $ 840,305,000 | |||||||||
US Term Loan B and Yen Term Loan | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of term loan principal repaid quarterly | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
Eurocurrency rate margin | Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, effective percentage | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||
Minimum interest rate | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Base-rate borrowings | Secured Debt | US Term Loan A, Canadian Term Loan And Senior Secured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, effective percentage | 0.75% | 0.75% | 0.75% | 0.75% | ||||||||
Base-rate borrowings | Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, effective percentage | 1.00% | 1.00% | 1.00% | 1.00% | ||||||||
Minimum interest rate | 0.00% | 0.00% | 0.00% | 0.00% | ||||||||
Base-rate borrowings | Term Loan Facility Due 2022 | Secured Debt | Yen denominated term loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.75% | |||||||||||
Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Secured Debt | US Term Loan A, Canadian Term Loan And Senior Secured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, effective percentage | 1.75% | 1.75% | 1.75% | 1.75% | ||||||||
Minimum | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest coverage ratio | 2 | |||||||||||
Minimum | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fee, effective rate | 0.25% | 0.25% | 0.25% | 0.25% | ||||||||
Minimum | Secured Debt | 2017 Amendment Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, agreement terms, annual cash flow threshold | $ 100,000,000 | |||||||||||
Minimum | Eurocurrency rate margin | Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.75% | |||||||||||
Minimum | Base-rate borrowings | Secured Debt | US Term Loan A, Canadian Term Loan And Senior Secured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||
Minimum | Base-rate borrowings | Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.75% | |||||||||||
Minimum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Secured Debt | US Term Loan A, Canadian Term Loan And Senior Secured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||
Maximum | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated debt ratio | 5.125 | 5.125 | 5.125 | 5.125 | ||||||||
Maximum | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Fee, effective rate | 0.40% | 0.40% | 0.40% | 0.40% | ||||||||
Maximum | Secured Debt | 2017 Amendment Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Consolidated debt ratio | 3 | 3 | 3 | 3 | ||||||||
Maximum | Eurocurrency rate margin | Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.00% | |||||||||||
Maximum | Base-rate borrowings | Secured Debt | US Term Loan A, Canadian Term Loan And Senior Secured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.25% | |||||||||||
Maximum | Base-rate borrowings | Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.00% | |||||||||||
Maximum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Secured Debt | US Term Loan A, Canadian Term Loan And Senior Secured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||
Issuers | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of capital stock securing debt | 100.00% | |||||||||||
Interest and other financing costs, net | $ 58,831,000 | $ 98,762,000 | $ 212,651,000 | $ 229,226,000 | ||||||||
Subsidiary Issuer and Guarantor | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of capital stock securing debt | 100.00% | |||||||||||
ASI | Secured Debt | 2017 Amendment Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, agreement terms, prepayment of outstanding term loans, annual cash flow, percentage | 50.00% | |||||||||||
Line of credit facility, agreement terms, prepayment of outstanding term loans, step down percentage, one | 25.00% | |||||||||||
Line of credit facility, agreement terms, prepayment of outstanding term loans, step down percentage, two | 0.00% | |||||||||||
ASI | Minimum | Secured Debt | 2017 Amendment Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, agreement terms, annual cash flow threshold | $ 10,000,000 | |||||||||||
Voting Stock | Foreign Subsidiaries | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of capital stock securing debt | 65.00% | |||||||||||
Nonvoting Stock | Subsidiary Issuer and Guarantor | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of capital stock securing debt | 100.00% | |||||||||||
Foreign | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Long-term debt | $ 571,400,000 | $ 571,400,000 | ||||||||||
First Year After Closing | Secured Debt | US Term Loan A And Canadian Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of term loan principal repaid quarterly | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||
Second Year After Closing | Secured Debt | US Term Loan A And Canadian Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of term loan principal repaid quarterly | 5.00% | 5.00% | 5.00% | 5.00% | ||||||||
Third Year After Closing | Secured Debt | US Term Loan A And Canadian Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of term loan principal repaid quarterly | 7.50% | 7.50% | 7.50% | 7.50% | ||||||||
Fourth Year After Closing | Secured Debt | US Term Loan A And Canadian Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of term loan principal repaid quarterly | 10.00% | 10.00% | 10.00% | 10.00% | ||||||||
Fifth Year After Closing | Secured Debt | US Term Loan A, Canadian Term Loan And Yen Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of term loan principal repaid quarterly | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
Interest and Other Financing Costs, net | Senior Notes | 5.75% Senior Notes, due 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Payments of financing costs | $ 3,300,000 | |||||||||||
Interest and Other Financing Costs, net | Senior Notes | Term Loan Facilities due 2019 and 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest expense charges | $ 27,000,000 |
Borrowings (Future Maturities)
Borrowings (Future Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | May 31, 2016 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 20,297 | |
2,018 | 78,204 | |
2,019 | 414,698 | |
2,020 | 117,647 | |
2,021 | 125,111 | |
2,022 | 766,729 | |
Thereafter | 4,025,127 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Deferred financing fees | $ 18,800 | |
Senior Notes | 5.125% senior notes, due January 2024 | ||
Debt Instrument [Line Items] | ||
Deferred financing fees | 15,600 | |
Term Loan Facilities | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt discount | $ 49,000 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) € in Millions, £ in Millions, gal in Millions, CAD in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2017USD ($) | Jul. 01, 2016USD ($) | Jun. 30, 2017USD ($) | Jul. 01, 2016USD ($) | Jun. 30, 2017EUR (€)gal | Jun. 30, 2017USD ($)gal | Jun. 30, 2017CADgal | Jun. 30, 2017GBP (£)gal | Sep. 30, 2016USD ($) | |
Derivative [Line Items] | |||||||||
Cash flow hedge gain (loss) | $ (7,405,000) | $ (36,373,000) | |||||||
Gain (loss) recognized in income | $ (7,809,000) | $ 5,221,000 | $ (13,941,000) | $ (21,246,000) | |||||
Designated as Hedging Instrument | Cash Flow Hedging | |||||||||
Derivative [Line Items] | |||||||||
Net tax loss expected to be reclassified from accumulated other comprehensive loss | 2,900,000 | ||||||||
Not Designated as Hedging Instrument | |||||||||
Derivative [Line Items] | |||||||||
Gain (loss) recognized in income | (4,077,000) | 13,438,000 | 347,000 | 7,137,000 | |||||
Interest rate swap agreements | Designated as Hedging Instrument | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivative | 2,400,000,000 | ||||||||
Interest rate swap agreements | Designated as Hedging Instrument | Cash Flow Hedging | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivative | 200,000,000 | ||||||||
Interest rate swap matured in the period | 350,000,000 | ||||||||
Cash flow hedge gain (loss) | $ (7,400,000) | $ (36,400,000) | |||||||
Interest rate swap agreements | Designated as Hedging Instrument | Cash Flow Hedging | Interest and Other Financing Costs, net | |||||||||
Derivative [Line Items] | |||||||||
Changes in market value as result from de-designation | 2,900,000 | ||||||||
Gasoline and diesel fuel agreements | Not Designated as Hedging Instrument | |||||||||
Derivative [Line Items] | |||||||||
Non monetary notional amount of derivative (in gallons) | gal | 20.2 | 20.2 | 20.2 | 20.2 | |||||
Gain (loss) recognized in income | $ (2,600,000) | $ 10,700,000 | $ (3,600,000) | $ 7,900,000 | |||||
Foreign currency forward exchange contracts | Not Designated as Hedging Instrument | |||||||||
Derivative [Line Items] | |||||||||
Notional amount of derivative | € 47 | CAD 14 | £ 50.3 |
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 | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Derivative [Line Items] | ||||
Gain (Loss) recognized in other comprehensive income | $ 33,261 | $ (26,032) | ||
Interest rate swap agreements | ||||
Derivative [Line Items] | ||||
Gain (Loss) recognized in other comprehensive income | $ (2,721) | $ (8,947) | 33,261 | (23,916) |
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 | Jun. 30, 2017 | Sep. 30, 2016 |
Derivative instruments | ||
Interest rate swap agreements | $ 13,659 | $ 41,295 |
Designated as Hedging Instrument | ||
Derivative instruments | ||
Interest rate swap agreements | 13,481 | 40,848 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate swap agreements | ||
Derivative instruments | ||
Interest rate swap agreements | 1,210 | 5,929 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest rate swap agreements | ||
Derivative instruments | ||
Interest rate swap agreements | 12,271 | 34,919 |
Not Designated as Hedging Instrument | Prepayments and other current assets | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
Fair value of derivative assets | 102 | 3,878 |
Not Designated as Hedging Instrument | Accounts payable | Foreign currency forward exchange contracts | ||
Derivative instruments | ||
Interest rate swap agreements | $ 178 | $ 447 |
Derivative Instruments - Locati
Derivative Instruments - Location of (Gain) Loss Reclassified from AOCI Into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Derivative instruments | ||||
(Gain) loss recognized in income | $ 7,809 | $ (5,221) | $ 13,941 | $ 21,246 |
Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative instruments | ||||
(Gain) loss reclassified from AOCI | 14,288 | 28,383 | ||
Designated as Hedging Instrument | Interest Expense | Cash Flow Hedging | Interest rate swap agreements | ||||
Derivative instruments | ||||
(Gain) loss reclassified from AOCI | 3,732 | 8,217 | 14,288 | 26,322 |
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 | 4,077 | (13,438) | (347) | (7,137) |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | ||||
Derivative instruments | ||||
(Gain) loss recognized in income | 2,600 | (10,700) | 3,600 | (7,900) |
Not Designated as Hedging Instrument | Interest Expense | Foreign currency forward exchange contracts | ||||
Derivative instruments | ||||
(Gain) loss recognized in income | 1,673 | (4,441) | (3,134) | (5,216) |
Not Designated as Hedging Instrument | Cost of services provided | Gasoline and diesel fuel agreements | ||||
Derivative instruments | ||||
(Gain) loss recognized in income | $ 2,404 | $ (8,997) | $ 2,787 | $ (1,921) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2017 | Jul. 01, 2016 | Aug. 02, 2017 | |
Class of Stock [Line Items] | ||||
Payments of dividends | $ 75,543 | $ 68,873 | ||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares authorized to be repurchased (in shares) | 250,000,000 | |||
Repurchase of common stock, (shares) | 2,800,000 | |||
Repurchase of common stock, value | $ 100,000 | |||
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 | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 15.6 | $ 14.2 | $ 50.3 | $ 43.6 |
Taxes related to share-based compensation | 5.7 | 5.5 | 18.6 | 17 |
TBOs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 5.2 | 4.8 | 15.7 | 14.4 |
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 5 | 5.3 | 16.4 | 16.4 |
PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | 5 | 3.4 | 16.4 | 10.7 |
Deferred Stock and Other Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 0.4 | $ 0.7 | $ 1.8 | $ 2.1 |
Share-Based Compensation - Opti
Share-Based Compensation - Options Granted and Weighted Average Grant Date Fair Value (Details) shares in Millions | 9 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 4.5 |
TBOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 2.7 |
Weighted-Average Grant-Date Fair Value (usd per unit) | $ / shares | $ 8.47 |
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 | $ 34.09 |
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 | $ 34.12 |
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 | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Earnings: | ||||
Net income attributable to Aramark stockholders | $ 65,295 | $ 44,765 | $ 260,785 | $ 204,462 |
Shares: | ||||
Basic weighted-average shares outstanding (in shares) | 244,266 | 242,831 | 244,399 | 241,740 |
Effect of dilutive securities (in shares) | 6,890 | 6,226 | 7,149 | 6,582 |
Diluted weighted-average shares outstanding (in shares) | 251,156 | 249,057 | 251,548 | 248,322 |
Basic Earnings Per Share: | ||||
Net income attributable to Aramark stockholders (in dollars per share) | $ 0.27 | $ 0.18 | $ 1.07 | $ 0.85 |
Diluted Earnings Per Share: | ||||
Net income attributable to Aramark stockholders (in dollars per share) | $ 0.26 | $ 0.18 | $ 1.04 | $ 0.82 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 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) | 3.7 | 2.4 | 3.9 | 3.4 |
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) | 1.2 | 0.7 | 1.2 | 0.7 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Jun. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | |
Maximum potential liability from vehicle leases | $ 94,600,000 |
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 | 9 Months Ended | ||
Jun. 30, 2017USD ($) | Jul. 01, 2016USD ($) | Jun. 30, 2017USD ($)segment | Jul. 01, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Sales | $ 3,593,277 | $ 3,586,908 | $ 10,950,288 | $ 10,872,005 |
Operating Income | 154,679 | 169,344 | 590,154 | 555,551 |
Interest and Other Financing Costs, net | (61,483) | (103,764) | (224,791) | (246,835) |
Income Before Income Taxes | 93,196 | 65,580 | 365,363 | 308,716 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | 190,900 | 191,400 | 690,100 | 645,600 |
Corporate, Non-Segment | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | (36,200) | (22,100) | (99,900) | (90,100) |
Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | 154,700 | 169,300 | 590,200 | 555,500 |
Interest and Other Financing Costs, net | (61,500) | (103,700) | (224,800) | (246,800) |
FSS North America | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,491,600 | 2,487,900 | 7,713,900 | 7,630,700 |
FSS North America | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | 120,100 | 100,700 | 457,300 | 406,300 |
FSS International | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 713,900 | 709,700 | 2,065,500 | 2,068,700 |
FSS International | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | 25,800 | 38,500 | 88,600 | 93,000 |
Uniform | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 387,800 | 389,300 | 1,170,900 | 1,172,600 |
Uniform | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income | $ 45,000 | $ 52,200 | $ 144,200 | $ 146,300 |
Sales | Product Concentration Risk | Food Services | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 80.00% | |||
Sales | Product Concentration Risk | Facility Services | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 20.00% |
Fair Value of Financial Asset52
Fair Value of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2017 | 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 | $ 5,680.8 | $ 5,365.6 |
Carrying Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 5,514.4 | $ 5,270 |
Condensed Consolidating Finan53
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Sep. 30, 2016 | Jul. 01, 2016 | Oct. 02, 2015 |
Current Assets: | ||||
Cash and cash equivalents | $ 154,674 | $ 152,580 | $ 196,507 | $ 122,416 |
Receivables | 1,532,879 | 1,476,349 | ||
Inventories | 567,564 | 587,155 | ||
Prepayments and other current assets | 209,325 | 276,487 | ||
Total current assets | 2,464,442 | 2,492,571 | ||
Property and Equipment, net | 981,536 | 1,023,083 | ||
Goodwill | 4,702,397 | 4,628,881 | ||
Investment in and Advances to Subsidiaries | 0 | 0 | ||
Other Intangible Assets | 1,121,541 | 1,111,883 | ||
Other Assets | 1,380,455 | 1,325,654 | ||
Assets | 10,650,371 | 10,582,072 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 74,237 | 46,522 | ||
Accounts payable | 729,041 | 847,588 | ||
Accrued expenses and other current liabilities | 1,098,624 | 1,290,635 | ||
Total current liabilities | 1,901,902 | 2,184,745 | ||
Long-Term Borrowings | 5,440,143 | 5,223,514 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 975,715 | 1,003,013 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 9,844 | 9,794 | ||
Total stockholders' equity | 2,322,767 | 2,161,006 | ||
Liabilities and Stockholders’ Equity | 10,650,371 | 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 | (9,503,636) | (8,441,040) | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | (2,002) | (2,002) | ||
Assets | (9,505,638) | (8,443,042) | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other current liabilities | 88 | (1,439) | ||
Total current liabilities | 88 | (1,439) | ||
Long-Term Borrowings | 0 | 0 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 0 | 0 | ||
Intercompany Payable | (6,294,379) | (6,020,230) | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | (3,211,347) | (2,421,373) | ||
Liabilities and Stockholders’ Equity | (9,505,638) | (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 | 2,322,762 | 2,161,101 | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Assets | 2,322,767 | 2,161,106 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other current liabilities | 0 | 100 | ||
Total current liabilities | 0 | 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 | 2,322,767 | 2,161,006 | ||
Liabilities and Stockholders’ Equity | 2,322,767 | 2,161,106 | ||
Issuers | ||||
Current Assets: | ||||
Cash and cash equivalents | 26,162 | 47,850 | 63,686 | 31,792 |
Receivables | 941 | 167 | ||
Inventories | 15,824 | 15,284 | ||
Prepayments and other current assets | 14,079 | 69,033 | ||
Total current assets | 57,006 | 132,334 | ||
Property and Equipment, net | 30,635 | 30,201 | ||
Goodwill | 173,104 | 173,104 | ||
Investment in and Advances to Subsidiaries | 5,803,683 | 5,450,692 | ||
Other Intangible Assets | 29,684 | 29,729 | ||
Other Assets | 80,217 | 56,850 | ||
Assets | 6,174,329 | 5,872,910 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 50,988 | 21,998 | ||
Accounts payable | 133,216 | 156,471 | ||
Accrued expenses and other current liabilities | 203,851 | 145,314 | ||
Total current liabilities | 388,055 | 323,783 | ||
Long-Term Borrowings | 4,928,734 | 4,570,931 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 429,342 | 440,839 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 428,198 | 537,357 | ||
Liabilities and Stockholders’ Equity | 6,174,329 | 5,872,910 | ||
Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 30,995 | 31,344 | 36,040 | 42,811 |
Receivables | 377,810 | 265,124 | ||
Inventories | 474,963 | 492,855 | ||
Prepayments and other current assets | 76,477 | 98,779 | ||
Total current assets | 960,245 | 888,102 | ||
Property and Equipment, net | 748,979 | 782,347 | ||
Goodwill | 4,071,585 | 3,982,737 | ||
Investment in and Advances to Subsidiaries | 462,014 | 598,759 | ||
Other Intangible Assets | 969,692 | 894,274 | ||
Other Assets | 1,034,314 | 1,028,887 | ||
Assets | 8,246,829 | 8,175,106 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 15,751 | 15,598 | ||
Accounts payable | 318,097 | 415,481 | ||
Accrued expenses and other current liabilities | 588,006 | 827,213 | ||
Total current liabilities | 921,854 | 1,258,292 | ||
Long-Term Borrowings | 62,351 | 62,892 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 516,552 | 510,254 | ||
Intercompany Payable | 5,276,339 | 4,619,489 | ||
Redeemable Noncontrolling Interest | 9,844 | 9,794 | ||
Total stockholders' equity | 1,459,889 | 1,714,385 | ||
Liabilities and Stockholders’ Equity | 8,246,829 | 8,175,106 | ||
Non Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 97,512 | 73,381 | $ 96,776 | $ 47,808 |
Receivables | 1,154,128 | 1,211,058 | ||
Inventories | 76,777 | 79,016 | ||
Prepayments and other current assets | 118,769 | 108,675 | ||
Total current assets | 1,447,186 | 1,472,130 | ||
Property and Equipment, net | 201,922 | 210,535 | ||
Goodwill | 457,708 | 473,040 | ||
Investment in and Advances to Subsidiaries | 915,177 | 230,488 | ||
Other Intangible Assets | 122,165 | 187,880 | ||
Other Assets | 267,926 | 241,919 | ||
Assets | 3,412,084 | 2,815,992 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 7,498 | 8,926 | ||
Accounts payable | 277,728 | 275,636 | ||
Accrued expenses and other current liabilities | 306,679 | 319,447 | ||
Total current liabilities | 591,905 | 604,009 | ||
Long-Term Borrowings | 449,058 | 589,691 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 29,821 | 51,920 | ||
Intercompany Payable | 1,018,040 | 1,400,741 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 1,323,260 | 169,631 | ||
Liabilities and Stockholders’ Equity | $ 3,412,084 | $ 2,815,992 |
Condensed Consolidating Finan54
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Statements of Income And Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 01, 2016 | Jun. 30, 2017 | Jul. 01, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | $ 3,593,277 | $ 3,586,908 | $ 10,950,288 | $ 10,872,005 |
Costs and Expenses: | ||||
Cost of services provided | 3,232,366 | 3,233,884 | 9,757,892 | 9,738,117 |
Depreciation and amortization | 126,440 | 122,363 | 378,258 | 370,172 |
Selling and general corporate expenses | 79,792 | 61,317 | 223,984 | 208,165 |
Interest and other financing costs, net | 61,483 | 103,764 | 224,791 | 246,835 |
Expense allocations | 0 | 0 | 0 | 0 |
Costs and Expenses | 3,500,081 | 3,521,328 | 10,584,925 | 10,563,289 |
Income Before Income Taxes | 93,196 | 65,580 | 365,363 | 308,716 |
Provision for Income Taxes | 27,832 | 20,722 | 104,334 | 103,925 |
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | 0 |
Net income | 65,364 | 44,858 | 261,029 | 204,791 |
Less: Net income attributable to noncontrolling interest | 69 | 93 | 244 | 329 |
Net income attributable to Aramark stockholders | 65,295 | 44,765 | 260,785 | 204,462 |
Other comprehensive income, net of tax | 17,574 | (7,929) | 24,710 | 5,541 |
Comprehensive income attributable to Aramark stockholders | 82,869 | 36,836 | 285,495 | 210,003 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Costs and Expenses: | ||||
Cost of services provided | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Selling and general corporate expenses | 0 | 0 | 0 | 0 |
Interest and other financing costs, net | 0 | 0 | 0 | 0 |
Expense allocations | 0 | 0 | 0 | 0 |
Costs and Expenses | 0 | 0 | 0 | 0 |
Income Before Income Taxes | 0 | 0 | 0 | 0 |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
Equity in Net Income of Subsidiaries | (65,295) | (44,765) | (260,785) | (204,462) |
Net income | (65,295) | (44,765) | (260,785) | (204,462) |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aramark stockholders | (65,295) | (44,765) | (260,785) | (204,462) |
Other comprehensive income, net of tax | (63,151) | 16,001 | (56,196) | (2,206) |
Comprehensive income attributable to Aramark stockholders | (128,446) | (28,764) | (316,981) | (206,668) |
Aramark (Parent) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Costs and Expenses: | ||||
Cost of services provided | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Selling and general corporate expenses | 0 | 0 | 0 | 0 |
Interest and other financing costs, net | 0 | 0 | 0 | 0 |
Expense allocations | 0 | 0 | 0 | |
Costs and Expenses | 0 | 0 | 0 | 0 |
Income Before Income Taxes | 0 | 0 | 0 | 0 |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
Equity in Net Income of Subsidiaries | 65,295 | 44,765 | 260,785 | 204,462 |
Net income | 65,295 | 44,765 | 260,785 | 204,462 |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aramark stockholders | 65,295 | 44,765 | 260,785 | 204,462 |
Other comprehensive income, net of tax | 17,574 | (7,929) | 24,710 | 5,541 |
Comprehensive income attributable to Aramark stockholders | 82,869 | 36,836 | 285,495 | 210,003 |
Issuers | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 274,030 | 263,378 | 785,435 | 773,795 |
Costs and Expenses: | ||||
Cost of services provided | 247,571 | 242,148 | 713,520 | 712,877 |
Depreciation and amortization | 4,288 | 3,890 | 12,851 | 11,758 |
Selling and general corporate expenses | 37,969 | 24,167 | 105,283 | 96,596 |
Interest and other financing costs, net | 58,831 | 98,762 | 212,651 | 229,226 |
Expense allocations | (67,250) | (95,447) | (210,077) | (250,932) |
Costs and Expenses | 281,409 | 273,520 | 834,228 | 799,525 |
Income Before Income Taxes | (7,379) | (10,142) | (48,793) | (25,730) |
Provision for Income Taxes | (3,087) | (3,718) | (19,186) | (8,642) |
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | 0 |
Net income | (4,292) | (6,424) | (29,607) | (17,088) |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aramark stockholders | (4,292) | (6,424) | (29,607) | (17,088) |
Other comprehensive income, net of tax | 4,034 | (10,635) | 42,069 | (19,076) |
Comprehensive income attributable to Aramark stockholders | (258) | (17,059) | 12,462 | (36,164) |
Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 2,346,917 | 2,406,759 | 7,310,795 | 7,357,628 |
Costs and Expenses: | ||||
Cost of services provided | 2,082,456 | 2,169,767 | 6,404,749 | 6,503,117 |
Depreciation and amortization | 104,394 | 101,569 | 313,350 | 307,149 |
Selling and general corporate expenses | 35,189 | 32,599 | 102,978 | 97,575 |
Interest and other financing costs, net | (847) | (653) | (2,207) | (1,813) |
Expense allocations | 62,913 | 80,109 | 201,245 | 222,588 |
Costs and Expenses | 2,284,105 | 2,383,391 | 7,020,115 | 7,128,616 |
Income Before Income Taxes | 62,812 | 23,368 | 290,680 | 229,012 |
Provision for Income Taxes | 17,424 | 6,218 | 82,727 | 75,537 |
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | 0 |
Net income | 45,388 | 17,150 | 207,953 | 153,475 |
Less: Net income attributable to noncontrolling interest | 69 | 93 | 244 | 329 |
Net income attributable to Aramark stockholders | 45,319 | 17,057 | 207,709 | 153,146 |
Other comprehensive income, net of tax | 1,495 | (3,010) | 172 | (6,292) |
Comprehensive income attributable to Aramark stockholders | 46,814 | 14,047 | 207,881 | 146,854 |
Non Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Sales | 972,330 | 916,771 | 2,854,058 | 2,740,582 |
Costs and Expenses: | ||||
Cost of services provided | 902,339 | 821,969 | 2,639,623 | 2,522,123 |
Depreciation and amortization | 17,758 | 16,904 | 52,057 | 51,265 |
Selling and general corporate expenses | 6,634 | 4,551 | 15,723 | 13,994 |
Interest and other financing costs, net | 3,499 | 5,655 | 14,347 | 19,422 |
Expense allocations | 4,337 | 15,338 | 8,832 | 28,344 |
Costs and Expenses | 934,567 | 864,417 | 2,730,582 | 2,635,148 |
Income Before Income Taxes | 37,763 | 52,354 | 123,476 | 105,434 |
Provision for Income Taxes | 13,495 | 18,222 | 40,793 | 37,030 |
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | 0 |
Net income | 24,268 | 34,132 | 82,683 | 68,404 |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aramark stockholders | 24,268 | 34,132 | 82,683 | 68,404 |
Other comprehensive income, net of tax | 57,622 | (2,356) | 13,955 | 27,574 |
Comprehensive income attributable to Aramark stockholders | $ 81,890 | $ 31,776 | $ 96,638 | $ 95,978 |
Condensed Consolidating Finan55
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2017 | Jul. 01, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | $ 449,189 | $ 410,540 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (340,294) | (350,170) |
Disposals of property and equipment | 14,917 | 18,029 |
Acquisitions of businesses, net of cash acquired | (130,094) | (59,377) |
Other investing activities | 1,701 | 7,194 |
Net cash used in investing activities | (453,770) | (384,324) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 3,707,408 | 1,398,395 |
Payments of long-term borrowings | (3,561,500) | (1,245,449) |
Net change in funding under the Receivables Facility | 82,000 | (9,730) |
Payments of dividends | (75,543) | (68,873) |
Proceeds from issuance of common stock | 23,048 | 23,296 |
Repurchase of stock | (100,000) | 0 |
Other financing activities | (68,738) | (49,764) |
Change in intercompany, net | 0 | 0 |
Net cash provided by (used in) financing activities | 6,675 | 47,875 |
Increase in cash and cash equivalents | 2,094 | 74,091 |
Cash and cash equivalents, beginning of period | 152,580 | 122,416 |
Cash and cash equivalents, end of period | 154,674 | 196,507 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (46,026) | (7,771) |
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 |
Repurchase of stock | 0 | |
Other financing activities | 0 | 0 |
Change in intercompany, net | 46,026 | 7,771 |
Net cash provided by (used in) financing activities | 46,026 | 7,771 |
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 | 0 |
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 |
Repurchase of stock | 0 | |
Other financing activities | 0 | 0 |
Change in intercompany, net | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 |
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 |
Issuers | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | 195,061 | 92,453 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (15,791) | (16,741) |
Disposals of property and equipment | 150 | 0 |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Other investing activities | (84,408) | 1,213 |
Net cash used in investing activities | (100,049) | (15,528) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 3,606,864 | 1,398,001 |
Payments of long-term borrowings | (3,228,896) | (1,111,793) |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | (75,543) | (68,873) |
Proceeds from issuance of common stock | 23,048 | 23,296 |
Repurchase of stock | (100,000) | |
Other financing activities | (73,175) | (57,569) |
Change in intercompany, net | (268,998) | (228,093) |
Net cash provided by (used in) financing activities | (116,700) | (45,031) |
Increase in cash and cash equivalents | (21,688) | 31,894 |
Cash and cash equivalents, beginning of period | 47,850 | 31,792 |
Cash and cash equivalents, end of period | 26,162 | 63,686 |
Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | 202,300 | 149,945 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (269,316) | (283,547) |
Disposals of property and equipment | 12,624 | 0 |
Acquisitions of businesses, net of cash acquired | (88,313) | (231) |
Other investing activities | 6,011 | 7,200 |
Net cash used in investing activities | (338,994) | (276,578) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | (14,492) | (11,285) |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of stock | 0 | |
Other financing activities | 4,632 | 8,256 |
Change in intercompany, net | 146,205 | 122,891 |
Net cash provided by (used in) financing activities | 136,345 | 119,862 |
Increase in cash and cash equivalents | (349) | (6,771) |
Cash and cash equivalents, beginning of period | 31,344 | 42,811 |
Cash and cash equivalents, end of period | 30,995 | 36,040 |
Non Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | 97,854 | 175,913 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (55,187) | (49,882) |
Disposals of property and equipment | 2,143 | 18,029 |
Acquisitions of businesses, net of cash acquired | (41,781) | (59,146) |
Other investing activities | 80,098 | (1,219) |
Net cash used in investing activities | (14,727) | (92,218) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 100,544 | 394 |
Payments of long-term borrowings | (318,112) | (122,371) |
Net change in funding under the Receivables Facility | 82,000 | (9,730) |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of stock | 0 | |
Other financing activities | (195) | (451) |
Change in intercompany, net | 76,767 | 97,431 |
Net cash provided by (used in) financing activities | (58,996) | (34,727) |
Increase in cash and cash equivalents | 24,131 | 48,968 |
Cash and cash equivalents, beginning of period | 73,381 | 47,808 |
Cash and cash equivalents, end of period | $ 97,512 | $ 96,776 |