Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 29, 2017 | Jan. 26, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 29, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Aramark | |
Entity Central Index Key | 1,584,509 | |
Entity Filer Category | Large Accelerated Filer | |
Current Fiscal Year End Date | --09-28 | |
Entity Common Stock, Shares Outstanding | 245,831,457 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 29, 2017 | Sep. 29, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 185,663 | $ 238,797 |
Receivables (less allowances: 2018 - $53,170; 2017 - $53,416) | 1,813,276 | 1,615,993 |
Inventories | 614,914 | 610,732 |
Prepayments and other current assets | 198,434 | 187,617 |
Total current assets | 2,812,287 | 2,653,139 |
Property and Equipment, net | 1,035,233 | 1,042,031 |
Goodwill | 5,253,116 | 4,715,511 |
Other Intangible Assets | 1,901,528 | 1,120,824 |
Other Assets | 1,524,658 | 1,474,724 |
Assets | 12,526,822 | 11,006,229 |
Current Liabilities: | ||
Current maturities of long-term borrowings | 71,173 | 78,157 |
Accounts payable | 833,429 | 955,925 |
Accrued expenses and other current liabilities | 1,107,965 | 1,334,013 |
Total current liabilities | 2,012,567 | 2,368,095 |
Long-Term Borrowings | 6,976,508 | 5,190,331 |
Deferred Income Taxes and Other Noncurrent Liabilities | 805,464 | 978,944 |
Redeemable Noncontrolling Interest | 9,889 | 9,798 |
Stockholders' Equity: | ||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2018—278,197,208 shares and 2017—277,111,042 shares; and outstanding: 2018—245,752,174 shares and 2017—245,593,961 shares) | 2,782 | 2,771 |
Capital surplus | 3,039,523 | 3,014,546 |
Retained earnings | 512,254 | 247,050 |
Accumulated other comprehensive loss | (112,156) | (123,760) |
Treasury stock (shares held in treasury: 2018—32,445,034 shares and 2017—31,517,081 shares) | (720,009) | (681,546) |
Total stockholders' equity | 2,722,394 | 2,459,061 |
Liabilities and Stockholders’ Equity | $ 12,526,822 | $ 11,006,229 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2017 | Sep. 29, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 53,170 | $ 53,416 |
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) | 278,197,208 | 277,111,042 |
Common stock, shares outstanding (in shares) | 245,752,174 | 245,593,961 |
Treasury stock, shares held in treasury (in shares) | 32,445,034 | 31,517,081 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Income Statement [Abstract] | ||
Sales | $ 3,965,118 | $ 3,735,383 |
Costs and Expenses: | ||
Cost of services provided | 3,520,064 | 3,299,329 |
Depreciation and amortization | 133,849 | 126,527 |
Selling and general corporate expenses | 92,168 | 65,472 |
Total Costs and Expenses | 3,746,081 | 3,491,328 |
Operating income | 219,037 | 244,055 |
Interest and Other Financing Costs, net | 76,299 | 65,677 |
Income Before Income Taxes | 142,738 | 178,378 |
(Benefit) Provision for Income Taxes | (149,702) | 52,943 |
Net income | 292,440 | 125,435 |
Less: Net income attributable to noncontrolling interest | 156 | 96 |
Net income attributable to Aramark stockholders | $ 292,284 | $ 125,339 |
Earnings per share attributable to Aramark stockholders: | ||
Basic (in dollars per share) | $ 1.19 | $ 0.51 |
Diluted (in dollars per share) | $ 1.16 | $ 0.50 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 245,086 | 244,758 |
Diluted (in shares) | 252,244 | 252,593 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 292,440 | $ 125,435 |
Other comprehensive income (loss), net of tax | ||
Foreign currency translation adjustments | 6,384 | (34,880) |
Fair value of cash flow hedges | 5,205 | 10,198 |
Share of equity investee's comprehensive income | 15 | 0 |
Other comprehensive income (loss), net of tax | 11,604 | (24,682) |
Comprehensive income | 304,044 | 100,753 |
Less: Net income attributable to noncontrolling interest | 156 | 96 |
Comprehensive income attributable to Aramark stockholders | $ 303,888 | $ 100,657 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 292,440 | $ 125,435 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 133,849 | 126,527 |
Deferred income taxes | (178,231) | 819 |
Share-based compensation expense | 16,489 | 16,224 |
Changes in operating assets and liabilities | (590,893) | (296,738) |
Other operating activities | 14,897 | 1,707 |
Net cash used in operating activities | (311,449) | (26,026) |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (118,907) | (106,600) |
Disposals of property and equipment | 1,160 | 1,349 |
Acquisition of certain businesses, net of cash acquired | (1,321,688) | (1,045) |
Other investing activities | (3,351) | 166 |
Net cash used in investing activities | (1,442,786) | (106,130) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 2,279,287 | 45,987 |
Payments of long-term borrowings | (647,622) | (13,609) |
Net change in funding under the Receivables Facility | 136,050 | 132,000 |
Payments of dividends | (25,779) | (25,246) |
Proceeds from issuance of common stock | 4,929 | 3,121 |
Repurchase of stock | (24,410) | 0 |
Other financing activities | (21,354) | (15,726) |
Net cash provided by financing activities | 1,701,101 | 126,527 |
Decrease in cash and cash equivalents | (53,134) | (5,629) |
Cash and cash equivalents, beginning of period | 238,797 | 152,580 |
Cash and cash equivalents, end of period | 185,663 | 146,951 |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | 69,300 | 27,500 |
Income taxes paid | $ 63,200 | $ 17,800 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 29, 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 to education, healthcare, business & industry and sports, leisure & corrections clients. The Company's core market is the United States, which is supplemented by an additional 18 -country footprint. The Company operates its business in three reportable segments that share many of the same operating characteristics: Food and Support Services United States ("FSS United States"), Food and Support Services International ("FSS International") and Uniform and Career Apparel ("Uniform"). See Note 12 for further discussion over the FSS United States reporting segment reclassification and name change. 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 22, 2017 . The Condensed Consolidated Balance Sheet as of September 29, 2017 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. New Accounting Standards Updates In September 2017, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which provides additional implementation guidance with respect to the revenue recognition standard and the leases recognition standard. 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 2017, the FASB issued an ASU to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplify the application of hedge accounting. The guidance is effective for the Company in the first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In May 2017, the FASB issued an 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 adopted the guidance in the first quarter of fiscal 2018, which did not have an impact on the condensed consolidated financial statements. 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 adopted the guidance in the first quarter of fiscal 2018, which did not have an impact on the condensed consolidated financial statements. The Company will apply the guidance during its annual impairment test or earlier if a change in circumstances or the occurrence of events indicates potential impairment exists. 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 adopted the guidance in the first quarter of fiscal 2018, which did not have an impact on the condensed consolidated financial statements. 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 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 reviewing its lease arrangements in order to determine the impact the adoption of this ASU will have on its 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 in its Consolidated Balance Sheets, but does not expect it to have a significant impact in its 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 adopted the guidance in the first quarter of fiscal 2018, 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 completed its comprehensive contract review project, excluding its recent acquisitions, and has developed an understanding of the potential adoption impact to the consolidated financial statements on a qualitative basis. Based on this preliminary assessment, the Company does not believe this ASU will have a material impact on the timing of revenue recognition. The Company has also made significant progress on evaluating the impact the ASU may have related to the timing and presentation of various financial aspects of our contractual arrangements, including client contract investments, costs to fulfill and commissions. The Company has not selected the method of adoption and continues to assess the disclosure requirements, business processes, controls and systems. 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 is as follows (in thousands): Three Months Ended December 29, 2017 December 30, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 292,440 $ 125,435 Foreign currency translation adjustments 6,384 — 6,384 (43,648 ) 8,768 (34,880 ) Fair value of cash flow hedges 7,341 (2,136 ) 5,205 16,718 (6,520 ) 10,198 Other 15 — 15 — — — Other comprehensive income (loss) 13,740 (2,136 ) 11,604 (26,930 ) 2,248 (24,682 ) Comprehensive income 304,044 100,753 Less: Net income attributable to noncontrolling interest 156 96 Comprehensive income attributable to Aramark stockholders $ 303,888 $ 100,657 Accumulated other comprehensive loss consists of the following (in thousands): December 29, 2017 September 29, 2017 Pension plan adjustments $ (45,275 ) $ (45,275 ) Foreign currency translation adjustments (56,174 ) (62,558 ) Cash flow hedges (1,589 ) (6,794 ) Share of equity investee's accumulated other comprehensive loss (9,118 ) (9,133 ) $ (112,156 ) $ (123,760 ) Other Assets Other assets consist primarily of client contract investments, investments in 50% or less owned entities, computer software costs and long-term receivables. Client contract investments generally represent a cash payment provided by the Company to help finance improvement or renovation at the facility from which the Company operates. These amounts are amortized over the contract period. If a contract is terminated prior to its maturity date, the Company is reimbursed for the unamortized client contract investment amount. Client contract investments, net of accumulated amortization, were $993.9 million and $981.3 million as of December 29, 2017 and September 29, 2017 , respectively. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 29, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS: Avendra, LLC ("Avendra") Acquisition On December 11, 2017, the Company completed the Avendra acquisition, a hospitality procurement services provider in North America, which included the merger of Capital Merger Sub, LLC, a wholly owned subsidiary of the Company, with Avendra, pursuant to the Agreement and Plan of Merger ("Avendra Merger Agreement") dated as of October 13, 2017, by and among Aramark Services, Inc. (“ASI”), a wholly owned subsidiary of the Company, Avendra, Capital Merger Sub, LLC, and Marriott International, Inc., in its capacity as Holder Representative. Avendra continued as the surviving entity of the merger and is a wholly owned subsidiary of the Company whose financial results are included within the FSS United States reporting segment from December 11, 2017. The total consideration paid for Avendra was $1,386.4 million , partially offset by $87.3 million of cash and restricted investments acquired, which included certain adjustments set forth in the Avendra Merger Agreement. In order to finance the Avendra acquisition, the Company entered into a long-term financing agreement as discussed in Note 5. The Company also incurred acquisition-related costs of $11.1 million included in "Selling and general corporate expenses" and $6.7 million included in "Interest and Other Financing Costs, net" in the Company’s Consolidated Statements of Income for the three month period ended December 29, 2017. Consideration The Company has accounted for the Avendra acquisition as a business combination under the acquisition method of accounting. The Company has preliminarily allocated the purchase price for the transaction based upon the estimated fair value of net assets acquired and liabilities assumed at the date of acquisition. Accordingly, the preliminary purchase price allocation is subject to change. The Company expects to finalize the allocation of the purchase price upon finalization of the valuation for the intangible assets and final resolution of post-closing adjustments related to working capital based on the best estimates of management. Any adjustments to the preliminary fair values will be made as soon as practicable but no later than one year from the acquisition date. These adjustments may have a material impact on the Company's results of operations and financial position. For tax purposes, this acquisition is a taxable transaction. Recognition and Measurement of Assets Acquired and Liabilities Assumed at Fair Value The following tables summarize the preliminary fair values of the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands): Current assets 157,614 Noncurrent assets 1,339,956 Total assets 1,497,570 Current liabilities 108,384 Noncurrent liabilities 2,809 Total liabilities 111,193 Intangible Assets The following table identifies the Company’s preliminary allocations of purchase price to the intangible assets acquired by category: Estimated Fair Weighted- Customer relationship assets $ 567.0 15 Trade name 222.0 indefinite Total intangible assets $ 789.0 The estimated fair value of the customer relationship assets was determined using the “multi-period excess earnings method” which considers the present value of net cash flows expected to be generated by the customer relationships, excluding any cash flows related to contributory assets. The estimated fair value of the trade name was determined using the “relief-from-royalty method” which considers the discounted estimated royalty payments that are expected to be avoided as a result of the trademarks being owned. Goodwill The Company recorded approximately $524.9 million of goodwill in connection with the Avendra acquisition, all of which was recognized in the FSS United States reporting segment. Factors that contributed to the Company’s preliminary recognition of goodwill include the Company’s intent to expand its buying scale through Avendra’s procurement capabilities and to expand its customer base outside of its traditional industries, in addition to the anticipated synergies the Company expects to generate from the acquisition. Goodwill related to the Avendra acquisition may be revised upon final determination of the purchase price allocation. Sales and Earnings for Acquired Entity The sales and net income included in the Company's condensed consolidated statements of income from the December 11, 2017 closing date through December 29, 2017 were not material. The effects of the acquisition on pro forma sales and net income of the combined entity were not material. Other Acquisitions During the three month period of fiscal 2018, the Company paid cash consideration of approximately $22.6 million for various acquisitions, excluding the purchase of Avendra. The sales, net income, assets and liabilities of these acquisitions did not have a material impact on the Company's condensed consolidated financial statements. |
Severance
Severance | 3 Months Ended |
Dec. 29, 2017 | |
Restructuring and Related Activities [Abstract] | |
Severance | SEVERANCE: During fiscal 2017, the Company updated its previously initiated actions on streamlining and improving the efficiencies and effectiveness of its selling, general and administrative functions. As of December 29, 2017 and September 29, 2017 , the Company had an accrual of approximately $13.3 million and $17.8 million , respectively, related to the unpaid obligations for these actions. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 29, 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 three months ended December 29, 2017 follow (in thousands): Segment September 29, 2017 Acquisitions Translation December 29, 2017 FSS United States $ 3,493,756 $ 524,940 $ — $ 4,018,696 FSS International 637,816 — 4,969 642,785 Uniform 583,939 7,696 — 591,635 $ 4,715,511 $ 532,636 $ 4,969 $ 5,253,116 During the first quarter of fiscal 2018, $173.3 million of goodwill related to certain Canadian businesses was reclassified out of FSS United States into FSS International (see Note 12) which is reflected in the opening balance as of September 29, 2017. Goodwill related to the acquisitions made during the three months ended December 29, 2017 may be revised upon final determination of the purchase price allocation (see Note 2). Other intangible assets consist of the following (in thousands): December 29, 2017 September 29, 2017 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,958,904 $ (1,088,271 ) $ 870,633 $ 1,376,812 $ (1,063,350 ) $ 313,462 Trade names 1,030,895 — 1,030,895 807,362 — 807,362 $ 2,989,799 $ (1,088,271 ) $ 1,901,528 $ 2,184,174 $ (1,063,350 ) $ 1,120,824 During the three months ended December 29, 2017 , the Company acquired customer relationship assets and trade names with preliminary values of approximately $580.0 million and $222.0 million , respectively. Customer relationship assets are being amortized principally on a straight-line basis over the expected period of benefit, 5 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 three months ended December 29, 2017 and December 30, 2016 was approximately $23.3 million and $22.5 million , respectively. |
Borrowings
Borrowings | 3 Months Ended |
Dec. 29, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS: Long-term borrowings, net, are summarized in the following table (in thousands): December 29, 2017 September 29, 2017 Senior secured revolving credit facility, due March 2022 $ 485,600 $ — Senior secured term loan facility, due March 2022 493,088 1,125,858 Senior secured term loan facility, due March 2024 1,403,683 1,403,429 Senior secured term loan facility, due March 2025 1,776,166 — 5.125% senior notes, due January 2024 903,328 903,654 4.750% senior notes, due June 2026 493,616 493,464 5.000% senior notes, due April 2025 590,022 589,733 3.125% senior notes, due April 2025 385,691 379,429 Receivables Facility, due May 2019 390,250 254,200 Capital leases 114,477 114,400 Other 11,760 4,321 7,047,681 5,268,488 Less—current portion (71,173 ) (78,157 ) $ 6,976,508 $ 5,190,331 As of December 29, 2017 , there was approximately $890.5 million of outstanding foreign currency borrowings. Fiscal 2018 Refinancing Transactions On December 11, 2017 ASI, an indirect wholly owned subsidiary of the Company, entered into Incremental Amendment No. 2 (the “Incremental Amendment”) to the credit agreement dated March 28, 2017 (as supplemented or otherwise modified from time to time, the “Credit Agreement”) and last amended by Incremental Amendment No. 1 on September 20, 2017, 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"). The Incremental Amendment provides for an incremental senior secured credit facility (the “Incremental Senior Secured Credit Facility”) under the Credit Agreement comprised of a U.S. dollar denominated term loan to ASI in an amount equal to $1,785.0 million , due in March 2025 ("U.S. Term Loan B due 2025"). The net proceeds from the borrowing under the Incremental Senior Secured Credit Facility under the Credit Agreement were used to finance the Avendra acquisition and, together with approximately $200.0 million of proceeds from a borrowing made under the Credit Agreement’s revolving credit facility, to repay the $633.8 million of principal outstanding on the U.S. Term Loan A under the Credit Agreement, along with accrued interest and certain fees and related expenses. The Company recorded $5.7 million of charges to "Interest and Other Financing Costs, net" in the Condensed Consolidated Statements of Income for the three months ended December 29, 2017 for the write-off of debt issuance costs. During the three months ended December 29, 2017 , the Company capitalized third-party costs of approximately $8.9 million directly attributable to the U.S. Term Loan B due 2025 under the Credit Agreement, which are included in "Long-Term Borrowings" in the Condensed Consolidated Balance Sheets. The U.S. Term Loan B due 2025 bears interest at a rate equal to, at the Company’s option, either (a) a LIBOR rate determined by reference to the costs of funds for deposits in U.S. dollars for the interest period relevant to such borrowing adjusted for certain additional costs or (b) a base rate determined by reference to the highest of (1) the prime rate of the administrative agent, (2) the federal funds rate plus 0.50% and (3) the LIBOR rate plus 1.00% plus an applicable margin set initially at 2.00% for borrowings based on the LIBOR rate and 1.00% for borrowings based on the base rate, in each case, subject to a reduction of 0.25% upon compliance by the Company with a consolidated leverage ratio of 3.00 to 1.00. The applicable margin spread for the U.S. Term Loan B due 2025 is 1.75% to 2.00% (as of December 29, 2017 — 1.75% ) with respect to eurocurrency (LIBOR) borrowings, subject to a LIBOR floor of 0.00% , and 0.75% to 1.00% (as of December 29, 2017 — 0.75% ) with respect to base-rate borrowings, subject to a minimum base rate of 0.00% . The Company is required to make quarterly principal repayments on the U.S. Term Loan B due 2025 in quarterly amounts of 1.00% per annum of the funded total principal amount and is subject to substantially similar terms relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s existing U.S. Term Loan B due 2024 outstanding under the Credit Agreement. Future Maturities At December 29, 2017 , annual maturities on long-term borrowings maturing between fiscal years 2018 and 2023 and thereafter (excluding the $48.9 million reduction to long-term borrowings from debt issuance costs and the increase of $14.2 million from the premium on the 5.125% Senior Notes due 2024 (the "2024 Notes")) are as follows (in thousands): 2018 $ 52,960 2019 450,967 2020 85,656 2021 86,202 2022 876,458 2023 47,000 Thereafter 5,483,161 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 29, 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 credit loss in the event of nonperformance by these counterparties. The Company continually monitors its positions and the credit ratings of its counterparties, and does not anticipate nonperformance by the counterparties. For designated hedging relationships, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting cash flows of hedged items. Cash Flow Hedges The Company has approximately $2.9 billion notional amount of outstanding interest rate swap agreements as of December 29, 2017 , which fixes the rate on a like amount of variable rate borrowings. During the first quarter of fiscal 2018, the Company entered into approximately $1.6 billion 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 $300.0 million matured during the first quarter of fiscal 2018. 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. As of December 29, 2017 and September 29, 2017 , approximately ($1.6) million and ($6.8) million of unrealized net of tax losses related to the interest rate swaps were included in "Accumulated other comprehensive loss," respectively. The hedge ineffectiveness for these cash flow hedging instruments during the three months ended December 29, 2017 and December 30, 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 December 29, 2017 December 30, 2016 Interest rate swap agreements $ 5,245 $ 10,745 Derivatives not Designated in Hedging Relationships The Company entered into a series of pay fixed/receive floating gasoline and diesel fuel agreements based on the Department of Energy weekly retail on-highway index in order to limit its exposure to price fluctuations for gasoline and diesel fuel. As of December 29, 2017 , the Company has contracts for approximately 13.4 million gallons outstanding through 2019. The Company does not record its gasoline and diesel fuel agreements as hedges for accounting purposes. The impact on earnings related to the change in fair value of these unsettled contracts was a gain of approximately $1.9 million for the three months ended December 29, 2017 . The impact on earnings related to the change in fair value of these unsettled contracts was a gain of approximately $4.4 million for the three months ended December 30, 2016 . 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 December 29, 2017 , the Company had foreign currency forward exchange contracts outstanding with notional amounts of €21.0 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 (see Note 13), of the Company's derivatives designated and not designated as hedging instruments in the Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location December 29, 2017 September 29, 2017 ASSETS Designated as hedging instruments: Interest rate swap agreements Noncurrent Assets $ 2,966 $ — Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ 36 $ 80 Gasoline and diesel fuel agreements Prepayments and other current assets $ 5,495 $ 3,626 $ 8,497 $ 3,706 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accrued expenses and other current liabilities $ — $ 1,196 Interest rate swap agreements Other Noncurrent Liabilities 3,964 9,313 $ 3,964 $ 10,509 The following table summarizes the location of (gain) loss reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments and the location of (gain) loss for the Company's derivatives not designated as hedging instruments in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Income Statement Location December 29, 2017 December 30, 2016 Designated as hedging instruments: Interest rate swap agreements Interest expense $ 2,096 $ 5,973 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ (3,416 ) $ (4,684 ) Foreign currency forward exchange contracts Interest expense (650 ) (7,404 ) (4,066 ) (12,088 ) $ (1,970 ) $ (6,115 ) The Company has a Japanese yen denominated term loan in the amount of ¥11,023.7 million . The term loan was designated as a hedge of the Company's net Japanese currency exposure represented by the equity investment in our Japanese affiliate, AIM Services Co., Ltd. Additionally, the Company has a Euro denominated term loan in the amount of €167.9 million . The term loan was designated as a hedge of the Company's net Euro currency exposure represented by certain holdings in our European affiliates. At December 29, 2017 , the net of tax gain expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months based on current market rates is approximately $1.2 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 29, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: On December 22, 2017, “H.R.1,” commonly referred to as the “Tax Cuts and Jobs Act” (the “Tax Legislation”) was signed into U.S. law. The Tax Legislation, which was effective on January 1, 2018, significantly revises the U.S. tax code by, among other things, lowering the corporate income tax rate from 35.0% to 21.0% and implementing a territorial tax system that includes a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. Though certain key aspects of the new law are effective January 1, 2018 and have an immediate accounting impact, other significant provisions are not effective or may not result in accounting implications for the Company until fiscal year-end September 28, 2018 or after. The impact of the corporate income tax rate change is reflected in the estimated annual effective tax rate for the fiscal year ending September 28, 2018. The legislation requires the Company to use a blended rate for its fiscal 2018 tax year by applying a prorated percentage of days before and after the January 1, 2018 effective date. As a result, the Company's 2018 annual statutory rate has been reduced to 24.5% . As a result of the enactment of the Tax Legislation, the Company is required to recognize the effect of the corporate income tax rate change on its deferred tax assets and liabilities in the quarter ending December 29, 2017, the period in which the legislation was enacted. The Company recorded a provisional tax benefit from corporate income tax rate change and certain other adjustments, which resulted in a noncash benefit to the provision for income taxes of approximately $207.5 million , which was recorded to the Condensed Consolidated Statements of Income for the three months ended December 29, 2017. A corresponding reduction to the Company's deferred income tax liability was also recorded to the Condensed Consolidated Balance Sheets) as of December 29, 2017. This is the Company’s provisional estimate and will be subject to adjustment as the computations are finalized. The Tax Legislation also requires the Company to pay a one-time transition tax on unremitted earnings of certain non-U.S. subsidiaries. The Company recorded a provisional estimate of the tax expense of approximately $2.5 million for the three months ended December 29, 2017 related to the one time transition tax, net of foreign tax credits. As a result of the Tax Legislation, the Company re-assessed the ability to recover its $21.2 million of foreign tax credit carryforwards. Based on currently available information, the Company believes it will not generate sufficient foreign source income in the carryforward period to utilize these credits. As a result, the Company recorded a valuation allowance of $21.2 million against its foreign tax credit carryforward for the three months ended December 29, 2017, as a provisional estimate. The Tax Legislation contains additional international provisions which may impact the Company prospectively, including the tax on “Global Intangible Low-Taxed Income” (“GILTI”). The Company is currently unable to provide a reasonable provisional estimate as to whether additional deferred tax assets and liabilities should be recognized for basis differences expected to reverse as GILTI in future years, pending clarification of interpretive issues and the availability of the necessary information to develop a reasonable estimate. Accordingly, the Company has yet to determine whether GILTI tax should be recorded as a period expense or measured as a deferred tax asset or liability. However, the Company does not believe the impact will be material. As the result of the one-time transition tax on unremitted foreign earnings of non-U.S. subsidiaries, as well as the shift from a worldwide system of taxation to a participation exemption system, the Company generally will not incur additional U.S. tax liability on the distribution of unremitted foreign earnings. However, other items continue to trigger additional tax expense for which no deferred tax liability has been recorded, including Section 986(c) currency gain/loss, foreign withholding taxes and state taxes. As a result, the Company has performed a preliminary assessment of its indefinite reinvestment position, pending further analysis and expected guidance around newly enacted legislation of U.S. taxation of foreign multinational companies, including the transition tax, GILTI and the potential tax liabilities attributable to repatriation under the Tax Legislation. Accordingly, the provisional estimate of undistributed earnings of certain foreign subsidiaries for which no deferred tax liability was recorded amounted to approximately $41.2 million at December 29, 2017. T he provisional estimate of foreign withholding tax cost associated with remitting these earnings is approximately $2.2 million . Such amount has not been accrued by the Company as it believes those foreign earnings are permanently reinvested. The Tax Legislation also contains limitations on the deductibility of interest expense and certain executive compensation, that are not expected to impact the Company until fiscal years ending after September 28, 2018. The Company continues to evaluate their impact on the financial statements. The provisional amounts are based on information available at this time and subject to change due to several factors, including, finalization of the Company’s annual financial closing and reporting processes, management’s further assessment of the Tax Legislation and related regulatory guidance, guidance that may be issued and actions the Company may take as a result of the Tax Legislation. The Company is in the process of finalizing these provisional calculations, and will continue to evaluate the effect of tax reform on its financial results. Additional details will be included in the Company's Form 10-K for the year ended September 28, 2018. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 29, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY: During the three months ended December 29, 2017 and December 30, 2016 , the Company paid dividends of approximately $25.8 million and $25.2 million to its stockholders, respectively. On January 31, 2018, the Company's Board declared a $0.105 dividend per share of common stock, payable on March 1, 2018, to shareholders of record on the close of business on February 14, 2018. During the first quarter of fiscal 2018, the Company completed a repurchase of 0.6 million shares of its common stock for $24.4 million . |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Dec. 29, 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 December 29, 2017 December 30, 2016 TBOs $ 5.0 $ 5.3 RSUs 5.8 6.4 PSUs 5.3 3.6 Deferred Stock and Other Units 0.4 0.9 $ 16.5 $ 16.2 Taxes related to share-based compensation $ 4.6 $ 6.0 The below table summarizes the number of shares granted and the weighted-average grant-date fair value per unit during the three months ended December 29, 2017 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 1.9 $ 8.56 RSUs 0.9 $ 40.74 PSUs 0.7 $ 38.96 3.5 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 29, 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 stock awards. The following table sets forth the computation of basic and diluted earnings per share attributable to the Company's stockholders (in thousands, except per share data): Three Months Ended December 29, 2017 December 30, 2016 Earnings: Net income attributable to Aramark stockholders $ 292,284 $ 125,339 Shares: Basic weighted-average shares outstanding 245,086 244,758 Effect of dilutive securities 7,158 7,835 Diluted weighted-average shares outstanding 252,244 252,593 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 1.19 $ 0.51 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 1.16 $ 0.50 Share-based awards to purchase 0.9 million and 3.3 million shares were outstanding for the three months ended December 29, 2017 and December 30, 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 1.9 million shares and 1.1 million shares were outstanding for the three month periods of December 29, 2017 and December 30, 2016 , respectively, but were not included in the computation of diluted earnings per common share, as the performance targets were not yet met. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 29, 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 $110.9 million at December 29, 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 December 29, 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 | 3 Months Ended |
Dec. 29, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS: Prior to the three month period ended December 29, 2017, the Company reported its operating results in three reportable segments: FSS North America, FSS International and Uniform. During the three month period ended December 29, 2017, the segment reporting structure was modified to align more closely with the Company’s management and internal reporting structure which was changed on October 1, 2017. Specifically, a majority of the Canadian operations, previously in the FSS North America segment, were combined with the FSS International reportable segment. The FSS North America reportable segment was then renamed the FSS United States reportable segment. All prior period segment information has been restated to reflect the new reportable segment structure. Management believes this new presentation enhances the utility of the segment information, as it reflects the Company’s current management structure and operating organization. The financial effect of this segment realignment was not material. Corporate includes general expenses not specifically allocated to an individual segment and share-based compensation expense (see Note 9). 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 December 29, 2017 December 30, 2016 FSS United States $ 2,649.5 $ 2,531.2 FSS International 913.0 808.7 Uniform 402.6 395.5 $ 3,965.1 $ 3,735.4 Operating Income Three Months Ended December 29, 2017 December 30, 2016 FSS United States $ 180.1 $ 176.3 FSS International 46.0 40.6 Uniform 44.5 53.8 270.6 270.7 Corporate (51.6 ) (26.6 ) Operating Income 219.0 244.1 Interest and Other Financing Costs, net (76.3 ) (65.7 ) Income Before Income Taxes $ 142.7 $ 178.4 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Financial Liabilities | 3 Months Ended |
Dec. 29, 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 gross values would not be materially different. The fair value of the Company's debt at December 29, 2017 and September 29, 2017 was $7,213.0 million and $5,450.1 million , respectively. The carrying value of the Company's debt at December 29, 2017 and September 29, 2017 was $7,047.7 million and $5,268.5 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 29, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS: AmeriPride Services, Inc. ("AmeriPride") Acquisition On January 19, 2018, the Company completed the AmeriPride acquisition, which included the merger of Timberwolf Acquisition Corporation, a wholly owned subsidiary of the Company, with AmeriPride, pursuant to the Agreement and Plan of Merger ("AmeriPride Merger Agreement") dated as of October 13, 2017, by and among the Company, AmeriPride, Timberwolf Acquisition Corporation, and Bruce M. Steiner, in his capacity as Stockholder Representative. AmeriPride continued as the surviving entity of the merger and is a wholly owned subsidiary of the Company and the results of AmeriPride will be included in the Company's Uniform segment. AmeriPride is a uniform and linen rental and supply company in the U.S. and Canada. The total consideration paid for AmeriPride was $1,000.0 million . ASI issued $1,150.0 million aggregate principal amount of 5.000% senior unsecured notes due 2028 on January 18, 2018 in order to finance the acquisition and to pay down certain borrowings under the revolving credit facility. The AmeriPride acquisition will be accounted for in accordance with the acquisition method of accounting for business combinations, which requires the Company to record the assets acquired and the liabilities assumed on its consolidated balance sheet at their respective fair values on the acquisition date. For tax purposes, this acquisition is a taxable transaction. The results of operations related to AmeriPride will be included in the Company’s consolidated financial statements from the date of acquisition. Due to the Company’s limited access to AmeriPride's financial information prior to the closing of the acquisition and the limited time that has elapsed from the closing of the acquisition date to the filing date of the Company’s Quarterly Report on Form 10-Q for the quarter ended December 29, 2017, the initial accounting for the business combination is not available. The Company intends to include the required information in its next Quarterly Report on Form 10-Q for the quarter ending March 30, 2018. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements of Aramark and Subsidiaries | 3 Months Ended |
Dec. 29, 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. The 2024 Notes, 5.000% Senior Notes due April 1, 2025 (the "5.000% 2025 Notes"), 3.125% Senior Notes due April, 1 2025 (the "3.125% 2025 Notes" and, together with the 5.000% 2025 Notes, the "2025 Notes") and 4.75% Senior Notes due June 1, 2026 ("2026 Notes") are obligations of the Company's wholly-owned subsidiary, Aramark Services, Inc., and are each jointly and severally guaranteed on a senior unsecured basis by the Company and substantially all of the Company's existing and future domestic subsidiaries (excluding the Receivables Facility subsidiary) ("Guarantors"). All other subsidiaries of the Company, either direct or indirect, do not guarantee the 2024 Notes, 2025 Notes or 2026 Notes ("Non Guarantors"). The Guarantors also guarantee certain other debt. 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 December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 35,676 $ 35,464 $ 114,518 $ — $ 185,663 Receivables — 4,567 357,469 1,451,240 — 1,813,276 Inventories — 15,130 517,885 81,899 — 614,914 Prepayments and other current assets — 29,867 76,697 91,870 — 198,434 Total current assets 5 85,240 987,515 1,739,527 — 2,812,287 Property and Equipment, net — 27,056 765,273 242,904 — 1,035,233 Goodwill — 173,104 3,882,344 1,197,668 — 5,253,116 Investment in and Advances to Subsidiaries 2,722,389 6,855,179 90,049 511,659 (10,179,276 ) — Other Intangible Assets — 29,677 908,770 963,081 — 1,901,528 Other Assets — 54,525 1,139,124 333,011 (2,002 ) 1,524,658 $ 2,722,394 $ 7,224,781 $ 7,773,075 $ 4,987,850 $ (10,181,278 ) $ 12,526,822 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 18,836 $ 20,444 $ 31,893 $ — $ 71,173 Accounts payable — 148,544 338,940 345,945 — 833,429 Accrued expenses and other current liabilities — 179,220 581,017 347,640 88 1,107,965 Total current liabilities — 346,600 940,401 725,478 88 2,012,567 Long-term Borrowings — 6,115,649 63,184 797,675 — 6,976,508 Deferred Income Taxes and Other Noncurrent Liabilities — 392,738 352,156 60,570 — 805,464 Intercompany Payable — — 5,583,237 608,249 (6,191,486 ) — Redeemable Noncontrolling Interest — — 9,889 — — 9,889 Total Stockholders' Equity 2,722,394 369,794 824,208 2,795,878 (3,989,880 ) 2,722,394 $ 2,722,394 $ 7,224,781 $ 7,773,075 $ 4,987,850 $ (10,181,278 ) $ 12,526,822 CONDENSED CONSOLIDATING BALANCE SHEETS September 29, 2017 (in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 111,512 $ 37,513 $ 89,767 $ — $ 238,797 Receivables — 3,721 303,664 1,308,608 — 1,615,993 Inventories — 15,737 514,267 80,728 — 610,732 Prepayments and other current assets — 14,123 83,404 90,090 — 187,617 Total current assets 5 145,093 938,848 1,569,193 — 2,653,139 Property and Equipment, net — 29,869 775,362 236,800 — 1,042,031 Goodwill — 173,104 3,874,647 667,760 — 4,715,511 Investment in and Advances to Subsidiaries 2,459,056 5,248,858 90,049 567,277 (8,365,240 ) — Other Intangible Assets — 29,683 914,000 177,141 — 1,120,824 Other Assets — 53,538 1,112,076 311,112 (2,002 ) 1,474,724 $ 2,459,061 $ 5,680,145 $ 7,704,982 $ 3,529,283 $ (8,367,242 ) $ 11,006,229 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 33,487 $ 20,330 $ 24,340 $ — $ 78,157 Accounts payable — 167,926 461,192 326,807 — 955,925 Accrued expenses and other current liabilities — 200,130 814,542 319,253 88 1,334,013 Total current liabilities — 401,543 1,296,064 670,400 88 2,368,095 Long-term Borrowings — 4,460,730 63,604 665,997 — 5,190,331 Deferred Income Taxes and Other Noncurrent Liabilities — 425,297 513,797 39,850 — 978,944 Intercompany Payable — — 5,224,196 747,347 (5,971,543 ) — Redeemable Noncontrolling Interest — — 9,798 — — 9,798 Total Stockholders' Equity 2,459,061 392,575 597,523 1,405,689 (2,395,787 ) 2,459,061 $ 2,459,061 $ 5,680,145 $ 7,704,982 $ 3,529,283 $ (8,367,242 ) $ 11,006,229 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Sales $ — $ 258,271 $ 2,643,266 $ 1,063,581 $ — $ 3,965,118 Costs and Expenses: Cost of services provided — 225,216 2,320,190 974,658 — 3,520,064 Depreciation and amortization — 4,491 105,895 23,463 — 133,849 Selling and general corporate expenses — 53,666 33,698 4,804 — 92,168 Interest and other financing costs, net — 71,175 68 5,056 — 76,299 Expense allocations — (65,203 ) 61,110 4,093 — — — 289,345 2,520,961 1,012,074 — 3,822,380 Income (Loss) before Income Tax — (31,074 ) 122,305 51,507 — 142,738 Provision (Benefit) for Income Taxes — (20,709 ) (142,447 ) 13,454 — (149,702 ) Equity in Net Income of Subsidiaries 292,284 — — — (292,284 ) — Net income (loss) 292,284 (10,365 ) 264,752 38,053 (292,284 ) 292,440 Less: Net income attributable to noncontrolling interest — — 156 — — 156 Net income (loss) attributable to Aramark stockholders 292,284 (10,365 ) 264,596 38,053 (292,284 ) 292,284 Other comprehensive income (loss), net of tax 11,604 5,389 — 19,002 (24,391 ) 11,604 Comprehensive income (loss) attributable to Aramark stockholders $ 303,888 $ (4,976 ) $ 264,596 $ 57,055 $ (316,675 ) $ 303,888 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 30, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Sales $ — $ 252,379 $ 2,528,456 $ 954,548 $ — $ 3,735,383 Costs and Expenses: Cost of services provided — 228,812 2,197,649 872,868 — 3,299,329 Depreciation and amortization — 4,381 102,183 19,963 — 126,527 Selling and general corporate expenses — 28,367 32,481 4,624 — 65,472 Interest and other financing costs, net — 61,353 (632 ) 4,956 — 65,677 Expense allocations — (76,019 ) 73,872 2,147 — — — 246,894 2,405,553 904,558 — 3,557,005 Income before Income Taxes — 5,485 122,903 49,990 — 178,378 Provision for Income Taxes — 1,477 36,316 15,150 — 52,943 Equity in Net Income of Subsidiaries 125,339 — — — (125,339 ) — Net income 125,339 4,008 86,587 34,840 (125,339 ) 125,435 Less: Net income attributable to noncontrolling interest — — 96 — — 96 Net income attributable to Aramark stockholders 125,339 4,008 86,491 34,840 (125,339 ) 125,339 Other comprehensive income (loss), net of tax (24,682 ) 25,467 (1,927 ) (68,348 ) 44,808 (24,682 ) Comprehensive income (loss) attributable to Aramark stockholders $ 100,657 $ 29,475 $ 84,564 $ (33,508 ) $ (80,531 ) $ 100,657 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Net cash used in operating activities $ — $ (63,662 ) $ (191,802 ) $ (20,982 ) $ (35,003 ) $ (311,449 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (2,166 ) (101,674 ) (15,067 ) — (118,907 ) Disposals of property and equipment — 112 515 533 — 1,160 Acquisitions of businesses, net of cash acquired — (1,386,378 ) (22,565 ) 87,255 — (1,321,688 ) Other investing activities — 342 (61 ) (3,632 ) — (3,351 ) Net cash (used in) provided by investing activities — (1,388,090 ) (123,785 ) 69,089 — (1,442,786 ) Cash flows from financing activities: Proceeds from long-term borrowings — 2,270,600 — 8,687 — 2,279,287 Payments of long-term borrowings — (633,997 ) (4,672 ) (8,953 ) — (647,622 ) Net change in funding under the Receivables Facility — — — 136,050 — 136,050 Payments of dividends — (25,779 ) — — — (25,779 ) Proceeds from issuance of common stock — 4,929 — — — 4,929 Repurchase of stock — (24,410 ) — — — (24,410 ) Other financing activities — (20,859 ) (495 ) — — (21,354 ) Change in intercompany, net — (194,568 ) 318,705 (159,140 ) 35,003 — Net cash provided by (used in) financing activities — 1,375,916 313,538 (23,356 ) 35,003 1,701,101 (Decrease) increase in cash and cash equivalents — (75,836 ) (2,049 ) 24,751 — (53,134 ) Cash and cash equivalents, beginning of period 5 111,512 37,513 89,767 — 238,797 Cash and cash equivalents, end of period $ 5 $ 35,676 $ 35,464 $ 114,518 $ — $ 185,663 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 102,805 $ (168,396 ) $ 40,175 $ (610 ) $ (26,026 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (4,921 ) (88,327 ) (13,352 ) — (106,600 ) Disposals of property and equipment — 49 546 754 — 1,349 Acquisitions of businesses, net of cash acquired — — — (1,045 ) — (1,045 ) Other investing activities — (1,836 ) (3,083 ) 5,085 — 166 Net cash used in investing activities — (6,708 ) (90,864 ) (8,558 ) — (106,130 ) Cash flows from financing activities: Proceeds from long-term borrowings — 40,900 — 5,087 — 45,987 Payments of long-term borrowings — (5,484 ) (4,591 ) (3,534 ) — (13,609 ) Net change in funding under the Receivables Facility — — — 132,000 — 132,000 Payments of dividends — (25,246 ) — — — (25,246 ) Proceeds from issuance of common stock — 3,121 — — — 3,121 Other financing activities — (15,300 ) (361 ) (65 ) — (15,726 ) Change in intercompany, net — (114,454 ) 261,852 (148,008 ) 610 — Net cash (used in) provided by financing activities — (116,463 ) 256,900 (14,520 ) 610 126,527 (Decrease) increase in cash and cash equivalents — (20,366 ) (2,360 ) 17,097 — (5,629 ) Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 27,484 $ 28,984 $ 90,478 $ — $ 146,951 |
Basis of Presentation and Sum22
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 29, 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 22, 2017 . The Condensed Consolidated Balance Sheet as of September 29, 2017 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. |
New Accounting Standard Updates | New Accounting Standards Updates In September 2017, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which provides additional implementation guidance with respect to the revenue recognition standard and the leases recognition standard. 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 2017, the FASB issued an ASU to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplify the application of hedge accounting. The guidance is effective for the Company in the first quarter of fiscal 2020 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In May 2017, the FASB issued an 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 adopted the guidance in the first quarter of fiscal 2018, which did not have an impact on the condensed consolidated financial statements. 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 adopted the guidance in the first quarter of fiscal 2018, which did not have an impact on the condensed consolidated financial statements. The Company will apply the guidance during its annual impairment test or earlier if a change in circumstances or the occurrence of events indicates potential impairment exists. 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 adopted the guidance in the first quarter of fiscal 2018, which did not have an impact on the condensed consolidated financial statements. 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 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 reviewing its lease arrangements in order to determine the impact the adoption of this ASU will have on its 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 in its Consolidated Balance Sheets, but does not expect it to have a significant impact in its 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 adopted the guidance in the first quarter of fiscal 2018, 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 completed its comprehensive contract review project, excluding its recent acquisitions, and has developed an understanding of the potential adoption impact to the consolidated financial statements on a qualitative basis. Based on this preliminary assessment, the Company does not believe this ASU will have a material impact on the timing of revenue recognition. The Company has also made significant progress on evaluating the impact the ASU may have related to the timing and presentation of various financial aspects of our contractual arrangements, including client contract investments, costs to fulfill and commissions. The Company has not selected the method of adoption and continues to assess the disclosure requirements, business processes, controls and systems. |
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 amortized over the contract period. If a contract is terminated prior to its maturity date, the Company is reimbursed for the unamortized client contract investment amount. |
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, the gross values would not be materially different. |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Comprehensive Loss | The summary of the components of comprehensive income is as follows (in thousands): Three Months Ended December 29, 2017 December 30, 2016 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 292,440 $ 125,435 Foreign currency translation adjustments 6,384 — 6,384 (43,648 ) 8,768 (34,880 ) Fair value of cash flow hedges 7,341 (2,136 ) 5,205 16,718 (6,520 ) 10,198 Other 15 — 15 — — — Other comprehensive income (loss) 13,740 (2,136 ) 11,604 (26,930 ) 2,248 (24,682 ) Comprehensive income 304,044 100,753 Less: Net income attributable to noncontrolling interest 156 96 Comprehensive income attributable to Aramark stockholders $ 303,888 $ 100,657 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): December 29, 2017 September 29, 2017 Pension plan adjustments $ (45,275 ) $ (45,275 ) Foreign currency translation adjustments (56,174 ) (62,558 ) Cash flow hedges (1,589 ) (6,794 ) Share of equity investee's accumulated other comprehensive loss (9,118 ) (9,133 ) $ (112,156 ) $ (123,760 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Dec. 29, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following tables summarize the preliminary fair values of the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands): Current assets 157,614 Noncurrent assets 1,339,956 Total assets 1,497,570 Current liabilities 108,384 Noncurrent liabilities 2,809 Total liabilities 111,193 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table identifies the Company’s preliminary allocations of purchase price to the intangible assets acquired by category: Estimated Fair Weighted- Customer relationship assets $ 567.0 15 Trade name 222.0 indefinite Total intangible assets $ 789.0 |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Assets by Segment | Changes in total goodwill during the three months ended December 29, 2017 follow (in thousands): Segment September 29, 2017 Acquisitions Translation December 29, 2017 FSS United States $ 3,493,756 $ 524,940 $ — $ 4,018,696 FSS International 637,816 — 4,969 642,785 Uniform 583,939 7,696 — 591,635 $ 4,715,511 $ 532,636 $ 4,969 $ 5,253,116 |
Schedule of Other Intangible Assets | Other intangible assets consist of the following (in thousands): December 29, 2017 September 29, 2017 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,958,904 $ (1,088,271 ) $ 870,633 $ 1,376,812 $ (1,063,350 ) $ 313,462 Trade names 1,030,895 — 1,030,895 807,362 — 807,362 $ 2,989,799 $ (1,088,271 ) $ 1,901,528 $ 2,184,174 $ (1,063,350 ) $ 1,120,824 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Dec. 29, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term borrowings, net, are summarized in the following table (in thousands): December 29, 2017 September 29, 2017 Senior secured revolving credit facility, due March 2022 $ 485,600 $ — Senior secured term loan facility, due March 2022 493,088 1,125,858 Senior secured term loan facility, due March 2024 1,403,683 1,403,429 Senior secured term loan facility, due March 2025 1,776,166 — 5.125% senior notes, due January 2024 903,328 903,654 4.750% senior notes, due June 2026 493,616 493,464 5.000% senior notes, due April 2025 590,022 589,733 3.125% senior notes, due April 2025 385,691 379,429 Receivables Facility, due May 2019 390,250 254,200 Capital leases 114,477 114,400 Other 11,760 4,321 7,047,681 5,268,488 Less—current portion (71,173 ) (78,157 ) $ 6,976,508 $ 5,190,331 |
Schedule of Maturities of Long-term Debt | At December 29, 2017 , annual maturities on long-term borrowings maturing between fiscal years 2018 and 2023 and thereafter (excluding the $48.9 million reduction to long-term borrowings from debt issuance costs and the increase of $14.2 million from the premium on the 5.125% Senior Notes due 2024 (the "2024 Notes")) are as follows (in thousands): 2018 $ 52,960 2019 450,967 2020 85,656 2021 86,202 2022 876,458 2023 47,000 Thereafter 5,483,161 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 29, 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 December 29, 2017 December 30, 2016 Interest rate swap agreements $ 5,245 $ 10,745 |
Schedule of Derivative Instruments, Balance Sheet Presentation | The following table summarizes the location and fair value, using Level 2 inputs (see Note 13), of the Company's derivatives designated and not designated as hedging instruments in the Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location December 29, 2017 September 29, 2017 ASSETS Designated as hedging instruments: Interest rate swap agreements Noncurrent Assets $ 2,966 $ — Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ 36 $ 80 Gasoline and diesel fuel agreements Prepayments and other current assets $ 5,495 $ 3,626 $ 8,497 $ 3,706 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accrued expenses and other current liabilities $ — $ 1,196 Interest rate swap agreements Other Noncurrent Liabilities 3,964 9,313 $ 3,964 $ 10,509 |
Schedule Summarizes the Location of (Gain) Loss Reclassified from AOCI Into Earnings for Derivatives Designated as Hedging Instruments and the Location of (Gain) Loss | The following table summarizes the location of (gain) loss reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments and the location of (gain) loss for the Company's derivatives not designated as hedging instruments in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Income Statement Location December 29, 2017 December 30, 2016 Designated as hedging instruments: Interest rate swap agreements Interest expense $ 2,096 $ 5,973 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ (3,416 ) $ (4,684 ) Foreign currency forward exchange contracts Interest expense (650 ) (7,404 ) (4,066 ) (12,088 ) $ (1,970 ) $ (6,115 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Dec. 29, 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 December 29, 2017 December 30, 2016 TBOs $ 5.0 $ 5.3 RSUs 5.8 6.4 PSUs 5.3 3.6 Deferred Stock and Other Units 0.4 0.9 $ 16.5 $ 16.2 Taxes related to share-based compensation $ 4.6 $ 6.0 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The below table summarizes the number of shares granted and the weighted-average grant-date fair value per unit during the three months ended December 29, 2017 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 1.9 $ 8.56 RSUs 0.9 $ 40.74 PSUs 0.7 $ 38.96 3.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 29, 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 December 29, 2017 December 30, 2016 Earnings: Net income attributable to Aramark stockholders $ 292,284 $ 125,339 Shares: Basic weighted-average shares outstanding 245,086 244,758 Effect of dilutive securities 7,158 7,835 Diluted weighted-average shares outstanding 252,244 252,593 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 1.19 $ 0.51 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 1.16 $ 0.50 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Dec. 29, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Segment | Financial information by segment follows (in millions): Sales Three Months Ended December 29, 2017 December 30, 2016 FSS United States $ 2,649.5 $ 2,531.2 FSS International 913.0 808.7 Uniform 402.6 395.5 $ 3,965.1 $ 3,735.4 Operating Income Three Months Ended December 29, 2017 December 30, 2016 FSS United States $ 180.1 $ 176.3 FSS International 46.0 40.6 Uniform 44.5 53.8 270.6 270.7 Corporate (51.6 ) (26.6 ) Operating Income 219.0 244.1 Interest and Other Financing Costs, net (76.3 ) (65.7 ) Income Before Income Taxes $ 142.7 $ 178.4 |
Schedule of Operating Income by Segment | Operating Income Three Months Ended December 29, 2017 December 30, 2016 FSS United States $ 180.1 $ 176.3 FSS International 46.0 40.6 Uniform 44.5 53.8 270.6 270.7 Corporate (51.6 ) (26.6 ) Operating Income 219.0 244.1 Interest and Other Financing Costs, net (76.3 ) (65.7 ) Income Before Income Taxes $ 142.7 $ 178.4 |
Condensed Consolidating Finan31
Condensed Consolidating Financial Statements of Aramark and Subsidiaries (Tables) | 3 Months Ended |
Dec. 29, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Consolidated Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEETS December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 35,676 $ 35,464 $ 114,518 $ — $ 185,663 Receivables — 4,567 357,469 1,451,240 — 1,813,276 Inventories — 15,130 517,885 81,899 — 614,914 Prepayments and other current assets — 29,867 76,697 91,870 — 198,434 Total current assets 5 85,240 987,515 1,739,527 — 2,812,287 Property and Equipment, net — 27,056 765,273 242,904 — 1,035,233 Goodwill — 173,104 3,882,344 1,197,668 — 5,253,116 Investment in and Advances to Subsidiaries 2,722,389 6,855,179 90,049 511,659 (10,179,276 ) — Other Intangible Assets — 29,677 908,770 963,081 — 1,901,528 Other Assets — 54,525 1,139,124 333,011 (2,002 ) 1,524,658 $ 2,722,394 $ 7,224,781 $ 7,773,075 $ 4,987,850 $ (10,181,278 ) $ 12,526,822 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 18,836 $ 20,444 $ 31,893 $ — $ 71,173 Accounts payable — 148,544 338,940 345,945 — 833,429 Accrued expenses and other current liabilities — 179,220 581,017 347,640 88 1,107,965 Total current liabilities — 346,600 940,401 725,478 88 2,012,567 Long-term Borrowings — 6,115,649 63,184 797,675 — 6,976,508 Deferred Income Taxes and Other Noncurrent Liabilities — 392,738 352,156 60,570 — 805,464 Intercompany Payable — — 5,583,237 608,249 (6,191,486 ) — Redeemable Noncontrolling Interest — — 9,889 — — 9,889 Total Stockholders' Equity 2,722,394 369,794 824,208 2,795,878 (3,989,880 ) 2,722,394 $ 2,722,394 $ 7,224,781 $ 7,773,075 $ 4,987,850 $ (10,181,278 ) $ 12,526,822 CONDENSED CONSOLIDATING BALANCE SHEETS September 29, 2017 (in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 111,512 $ 37,513 $ 89,767 $ — $ 238,797 Receivables — 3,721 303,664 1,308,608 — 1,615,993 Inventories — 15,737 514,267 80,728 — 610,732 Prepayments and other current assets — 14,123 83,404 90,090 — 187,617 Total current assets 5 145,093 938,848 1,569,193 — 2,653,139 Property and Equipment, net — 29,869 775,362 236,800 — 1,042,031 Goodwill — 173,104 3,874,647 667,760 — 4,715,511 Investment in and Advances to Subsidiaries 2,459,056 5,248,858 90,049 567,277 (8,365,240 ) — Other Intangible Assets — 29,683 914,000 177,141 — 1,120,824 Other Assets — 53,538 1,112,076 311,112 (2,002 ) 1,474,724 $ 2,459,061 $ 5,680,145 $ 7,704,982 $ 3,529,283 $ (8,367,242 ) $ 11,006,229 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 33,487 $ 20,330 $ 24,340 $ — $ 78,157 Accounts payable — 167,926 461,192 326,807 — 955,925 Accrued expenses and other current liabilities — 200,130 814,542 319,253 88 1,334,013 Total current liabilities — 401,543 1,296,064 670,400 88 2,368,095 Long-term Borrowings — 4,460,730 63,604 665,997 — 5,190,331 Deferred Income Taxes and Other Noncurrent Liabilities — 425,297 513,797 39,850 — 978,944 Intercompany Payable — — 5,224,196 747,347 (5,971,543 ) — Redeemable Noncontrolling Interest — — 9,798 — — 9,798 Total Stockholders' Equity 2,459,061 392,575 597,523 1,405,689 (2,395,787 ) 2,459,061 $ 2,459,061 $ 5,680,145 $ 7,704,982 $ 3,529,283 $ (8,367,242 ) $ 11,006,229 |
Schedule of Condensed Consolidated Income Statement | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Sales $ — $ 258,271 $ 2,643,266 $ 1,063,581 $ — $ 3,965,118 Costs and Expenses: Cost of services provided — 225,216 2,320,190 974,658 — 3,520,064 Depreciation and amortization — 4,491 105,895 23,463 — 133,849 Selling and general corporate expenses — 53,666 33,698 4,804 — 92,168 Interest and other financing costs, net — 71,175 68 5,056 — 76,299 Expense allocations — (65,203 ) 61,110 4,093 — — — 289,345 2,520,961 1,012,074 — 3,822,380 Income (Loss) before Income Tax — (31,074 ) 122,305 51,507 — 142,738 Provision (Benefit) for Income Taxes — (20,709 ) (142,447 ) 13,454 — (149,702 ) Equity in Net Income of Subsidiaries 292,284 — — — (292,284 ) — Net income (loss) 292,284 (10,365 ) 264,752 38,053 (292,284 ) 292,440 Less: Net income attributable to noncontrolling interest — — 156 — — 156 Net income (loss) attributable to Aramark stockholders 292,284 (10,365 ) 264,596 38,053 (292,284 ) 292,284 Other comprehensive income (loss), net of tax 11,604 5,389 — 19,002 (24,391 ) 11,604 Comprehensive income (loss) attributable to Aramark stockholders $ 303,888 $ (4,976 ) $ 264,596 $ 57,055 $ (316,675 ) $ 303,888 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 30, 2016 ( in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Sales $ — $ 252,379 $ 2,528,456 $ 954,548 $ — $ 3,735,383 Costs and Expenses: Cost of services provided — 228,812 2,197,649 872,868 — 3,299,329 Depreciation and amortization — 4,381 102,183 19,963 — 126,527 Selling and general corporate expenses — 28,367 32,481 4,624 — 65,472 Interest and other financing costs, net — 61,353 (632 ) 4,956 — 65,677 Expense allocations — (76,019 ) 73,872 2,147 — — — 246,894 2,405,553 904,558 — 3,557,005 Income before Income Taxes — 5,485 122,903 49,990 — 178,378 Provision for Income Taxes — 1,477 36,316 15,150 — 52,943 Equity in Net Income of Subsidiaries 125,339 — — — (125,339 ) — Net income 125,339 4,008 86,587 34,840 (125,339 ) 125,435 Less: Net income attributable to noncontrolling interest — — 96 — — 96 Net income attributable to Aramark stockholders 125,339 4,008 86,491 34,840 (125,339 ) 125,339 Other comprehensive income (loss), net of tax (24,682 ) 25,467 (1,927 ) (68,348 ) 44,808 (24,682 ) Comprehensive income (loss) attributable to Aramark stockholders $ 100,657 $ 29,475 $ 84,564 $ (33,508 ) $ (80,531 ) $ 100,657 |
Schedule of Condensed Consolidated Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Net cash used in operating activities $ — $ (63,662 ) $ (191,802 ) $ (20,982 ) $ (35,003 ) $ (311,449 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (2,166 ) (101,674 ) (15,067 ) — (118,907 ) Disposals of property and equipment — 112 515 533 — 1,160 Acquisitions of businesses, net of cash acquired — (1,386,378 ) (22,565 ) 87,255 — (1,321,688 ) Other investing activities — 342 (61 ) (3,632 ) — (3,351 ) Net cash (used in) provided by investing activities — (1,388,090 ) (123,785 ) 69,089 — (1,442,786 ) Cash flows from financing activities: Proceeds from long-term borrowings — 2,270,600 — 8,687 — 2,279,287 Payments of long-term borrowings — (633,997 ) (4,672 ) (8,953 ) — (647,622 ) Net change in funding under the Receivables Facility — — — 136,050 — 136,050 Payments of dividends — (25,779 ) — — — (25,779 ) Proceeds from issuance of common stock — 4,929 — — — 4,929 Repurchase of stock — (24,410 ) — — — (24,410 ) Other financing activities — (20,859 ) (495 ) — — (21,354 ) Change in intercompany, net — (194,568 ) 318,705 (159,140 ) 35,003 — Net cash provided by (used in) financing activities — 1,375,916 313,538 (23,356 ) 35,003 1,701,101 (Decrease) increase in cash and cash equivalents — (75,836 ) (2,049 ) 24,751 — (53,134 ) Cash and cash equivalents, beginning of period 5 111,512 37,513 89,767 — 238,797 Cash and cash equivalents, end of period $ 5 $ 35,676 $ 35,464 $ 114,518 $ — $ 185,663 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 30, 2016 (in thousands) Aramark (Parent) Aramark Services, Inc. Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 102,805 $ (168,396 ) $ 40,175 $ (610 ) $ (26,026 ) Cash flows from investing activities: Purchases of property and equipment, client contract investments and other — (4,921 ) (88,327 ) (13,352 ) — (106,600 ) Disposals of property and equipment — 49 546 754 — 1,349 Acquisitions of businesses, net of cash acquired — — — (1,045 ) — (1,045 ) Other investing activities — (1,836 ) (3,083 ) 5,085 — 166 Net cash used in investing activities — (6,708 ) (90,864 ) (8,558 ) — (106,130 ) Cash flows from financing activities: Proceeds from long-term borrowings — 40,900 — 5,087 — 45,987 Payments of long-term borrowings — (5,484 ) (4,591 ) (3,534 ) — (13,609 ) Net change in funding under the Receivables Facility — — — 132,000 — 132,000 Payments of dividends — (25,246 ) — — — (25,246 ) Proceeds from issuance of common stock — 3,121 — — — 3,121 Other financing activities — (15,300 ) (361 ) (65 ) — (15,726 ) Change in intercompany, net — (114,454 ) 261,852 (148,008 ) 610 — Net cash (used in) provided by financing activities — (116,463 ) 256,900 (14,520 ) 610 126,527 (Decrease) increase in cash and cash equivalents — (20,366 ) (2,360 ) 17,097 — (5,629 ) Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 27,484 $ 28,984 $ 90,478 $ — $ 146,951 |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | 3 Months Ended |
Dec. 29, 2017countrysegment | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |
Number of reportable segments | segment | 3 |
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 | 18 |
Basis of Presentation and Sum33
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Pre-Tax Amount | ||
Foreign currency translation adjustments | $ 6,384 | $ (43,648) |
Fair value of cash flow hedges | 7,341 | 16,718 |
Other | 15 | 0 |
Other comprehensive income (loss) | 13,740 | (26,930) |
Tax Effect | ||
Foreign currency translation adjustments | 0 | 8,768 |
Fair value of cash flow hedges | (2,136) | (6,520) |
Other | 0 | 0 |
Other comprehensive income (loss) | (2,136) | 2,248 |
After-Tax Amount | ||
Net income | 292,440 | 125,435 |
Foreign currency translation adjustments | 6,384 | (34,880) |
Fair value of cash flow hedges | 5,205 | 10,198 |
Other | 15 | 0 |
Other comprehensive income (loss), net of tax | 11,604 | (24,682) |
Comprehensive income | 304,044 | 100,753 |
Less: Net income attributable to noncontrolling interest | 156 | 96 |
Comprehensive income attributable to Aramark stockholders | $ 303,888 | $ 100,657 |
Basis of Presentation and Sum34
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Sep. 29, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated Other Comprehensive Income (Loss), Pension Plan Adjustments, Net of Tax | $ (45,275) | $ (45,275) |
Foreign currency translation adjustments | (56,174) | (62,558) |
Cash flow hedges | (1,589) | (6,794) |
Share of equity investee's accumulated other comprehensive loss | (9,118) | (9,133) |
Total | $ (112,156) | $ (123,760) |
Basis of Presentation and Sum35
Basis of Presentation and Summary of Significant Accounting Policies - Other Assets Narrative (Details) - USD ($) $ in Millions | Dec. 29, 2017 | Sep. 29, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Capital contract investments | $ 993.9 | $ 981.3 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 11, 2017 | Dec. 29, 2017 | Sep. 29, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,253,116 | $ 4,715,511 | |
Avendra | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | $ 1,386,400 | ||
Escrow payment for potential final adjustments | 87,300 | ||
Goodwill | 524,900 | ||
Other Acquisitions | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | $ 22,600 | ||
Selling, General Expenses | Avendra | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | 11,100 | ||
Interest and Other Financing Costs, net | Avendra | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 6,700 |
Acquisitions (Assets Acquired a
Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - Avendra $ in Thousands | Dec. 11, 2017USD ($) |
Business Acquisition [Line Items] | |
Current assets | $ 157,614 |
Noncurrent assets | 1,339,956 |
Total assets | 1,497,570 |
Current liabilities | 108,384 |
Noncurrent liabilities | 2,809 |
Total liabilities | $ 111,193 |
Acquisitions (Intangible Assets
Acquisitions (Intangible Assets Acquired) (Details) - Avendra $ in Millions | Dec. 11, 2017USD ($) |
Business Acquisition [Line Items] | |
Total intangible assets | $ 789 |
Trade name | |
Business Acquisition [Line Items] | |
Trade name | 222 |
Customer relationship assets | |
Business Acquisition [Line Items] | |
Customer relationship assets | $ 567 |
Customer Relationship assets, Weighted average useful life (in years) | 15 years |
Severance (Details)
Severance (Details) - USD ($) $ in Millions | Dec. 29, 2017 | Sep. 29, 2017 |
Employee Severance and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related costs accrual | $ 13.3 | $ 17.8 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets - Schedule of Goodwill Assets by Segment (Details) $ in Thousands | 3 Months Ended |
Dec. 29, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | $ 4,715,511 |
Acquisitions | 532,636 |
Translation & Other | 4,969 |
Balance at the end of the period | 5,253,116 |
FSS United States | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 3,493,756 |
Acquisitions | 524,940 |
Translation & Other | 0 |
Balance at the end of the period | 4,018,696 |
FSS International | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 637,816 |
Acquisitions | 0 |
Translation & Other | 4,969 |
Balance at the end of the period | 642,785 |
Uniform | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 583,939 |
Acquisitions | 7,696 |
Translation & Other | 0 |
Balance at the end of the period | $ 591,635 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Sep. 29, 2017 |
Other Intangible Assets | ||
Gross Amount | $ 2,989,799 | $ 2,184,174 |
Accumulated Amortization | (1,088,271) | (1,063,350) |
Net Amount | 1,901,528 | 1,120,824 |
Customer relationship assets | ||
Other Intangible Assets | ||
Gross Amount | 1,958,904 | 1,376,812 |
Accumulated Amortization | (1,088,271) | (1,063,350) |
Net Amount | 870,633 | 313,462 |
Trade name | ||
Other Intangible Assets | ||
Gross Amount | 1,030,895 | 807,362 |
Accumulated Amortization | 0 | 0 |
Net Amount | $ 1,030,895 | $ 807,362 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 23.3 | $ 22.5 |
Customer relationship assets | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 5 years | |
Customer relationship assets | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 24 years | |
Customer relationship assets | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 14 years | |
IPS Acquisition | Customer relationship assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trade names acquired | $ 580 | |
IPS Acquisition | Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trade names acquired | 222 | |
FSS United States | ||
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill related to Canada reclassified | $ 173.3 |
Borrowings (Schedule of Debt) (
Borrowings (Schedule of Debt) (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Sep. 29, 2017 |
Debt Instrument [Line Items] | ||
Capital leases | $ 114,477 | $ 114,400 |
Other | 11,760 | 4,321 |
Debt and capital lease obligations | 7,047,681 | 5,268,488 |
Less—current portion | (71,173) | (78,157) |
Long-Term Borrowings | 6,976,508 | 5,190,331 |
Receivables Facility, due May 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 390,250 | 254,200 |
Senior Notes | 5.125% senior notes, due January 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 903,328 | 903,654 |
Interest rate stated percentage | 5.125% | |
Senior Notes | 4.750% senior notes, due June 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 493,616 | 493,464 |
Interest rate stated percentage | 4.75% | |
Senior Notes | 5.000% senior notes, due April 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 590,022 | 589,733 |
Interest rate stated percentage | 5.00% | |
Senior Notes | 3.125% senior notes, due April 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 385,691 | 379,429 |
Interest rate stated percentage | 3.125% | |
Senior secured revolving credit facility, due March 2022 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 485,600 | 0 |
Senior secured term loan facility, due March 2022 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 493,088 | 1,125,858 |
Senior secured term loan facility, due March 2024 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,403,683 | 1,403,429 |
Senior secured term loan facility due March 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,776,166 | $ 0 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) $ in Thousands | Dec. 11, 2017USD ($) | Dec. 29, 2017USD ($) | Sep. 29, 2017USD ($) |
Senior Notes | 5.000% senior notes, due April 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 590,022 | $ 589,733 | |
Senior Notes | 3.125% senior notes, due April 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 385,691 | 379,429 | |
Senior Notes | 5.125% senior notes, due January 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 903,328 | 903,654 | |
Deferred financing fees | 14,200 | ||
Senior Notes | 4.750% senior notes, due June 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | 493,616 | 493,464 | |
Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,785,000 | ||
Payments of financing costs | 8,900 | ||
Term Loan Facility, US Term Loan A, Due 2022 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Repayments of debt | 633,800 | ||
Revolving Credit Facility | Secured Debt | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 485,600 | $ 0 | |
Revolving Credit Facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Proceeds from lines of credit | $ 200,000 | ||
Federal Funds Rate | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
LIBOR | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Debt Instrument, Interest Rate, Effective Percentage | 0.75% | ||
Minimum interest rate | 0.00% | ||
Base-rate borrowings | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Minimum interest rate | 0.00% | ||
Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.75% | ||
Minimum | LIBOR | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Minimum | Base-rate borrowings | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Consolidated leverage ratio compliance, interest rate reduction | 0.25% | ||
Minimum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Maximum | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Minimum annual principal payment as a percent of funded total principal | 1.00% | ||
Maximum | Secured Debt | Term Loan Facility, US Term Loan B, Due 2025 | |||
Debt Instrument [Line Items] | |||
Consolidated debt ratio | 3 | ||
Maximum | LIBOR | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Maximum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.00% | ||
Foreign | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 890,500 | ||
Interest and Other Financing Costs, net | Term Loan Facility, US Term Loan A, Due 2022 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Write off of deferred debt issuance costs | $ 5,700 |
Borrowings (Future Maturities)
Borrowings (Future Maturities) (Details) $ in Thousands | Dec. 29, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,018 | $ 52,960 |
2,019 | 450,967 |
2,020 | 85,656 |
2,021 | 86,202 |
2,022 | 876,458 |
2,023 | 47,000 |
Thereafter | 5,483,161 |
Senior Notes | 5.125% senior notes, due January 2024 | |
Debt Instrument [Line Items] | |
Deferred financing fees | 14,200 |
Term Loan Facilities | Secured Debt | |
Debt Instrument [Line Items] | |
Debt discount | $ 48,900 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) € in Millions, ¥ in Millions, gal in Millions | 3 Months Ended | |||||
Dec. 29, 2017USD ($) | Dec. 30, 2016USD ($) | Dec. 29, 2017EUR (€)gal | Dec. 29, 2017USD ($)gal | Dec. 29, 2017JPY (¥)gal | Sep. 29, 2017USD ($) | |
Derivative [Line Items] | ||||||
Cash flow hedge gain (loss) | $ (1,589,000) | $ (6,794,000) | ||||
Gain (loss) recognized in income | $ 1,970,000 | $ 6,115,000 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Net tax loss expected to be reclassified from accumulated other comprehensive loss | 1,200,000 | |||||
Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Gain (loss) recognized in income | 4,066,000 | 12,088,000 | ||||
Interest rate swap agreements | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | 2,900,000,000 | |||||
Interest rate swap agreements | Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | 1,600,000,000 | |||||
Interest rate swap matured in the period | 300,000,000 | |||||
Cash flow hedge gain (loss) | $ (1,600,000) | $ (6,800,000) | ||||
Gasoline and diesel fuel agreements | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Non monetary notional amount of derivative (in gallons) | gal | 13.4 | 13.4 | 13.4 | |||
Gain (loss) recognized in income | $ 1,900,000 | $ 4,400,000 | ||||
Foreign currency forward exchange contracts | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | € | € 21 | |||||
Yen denominated term loans | Secured Debt | Term Loan Facility Due 2022 | ||||||
Derivative [Line Items] | ||||||
Long-term debt | ¥ | ¥ 11,023.7 | |||||
Euro Denominated Term Loan | Secured Debt | Term Loan Facility Due 2022 | ||||||
Derivative [Line Items] | ||||||
Long-term debt | € | € 167.9 |
Derivative Instruments - Effect
Derivative Instruments - Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Gain (Loss) recognized in other comprehensive income | $ 5,245 | $ 10,745 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Presentation (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Sep. 29, 2017 |
Derivative instruments | ||
Interest rate swap agreements | $ 3,964 | $ 10,509 |
Designated as Hedging Instrument | Accrued expenses and other current liabilities | Interest rate swap agreements | ||
Derivative instruments | ||
Interest rate swap agreements | 0 | 1,196 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest rate swap agreements | ||
Derivative instruments | ||
Interest rate swap agreements | 3,964 | 9,313 |
Not Designated as Hedging Instrument | ||
Derivative instruments | ||
Fair value of derivative assets | 8,497 | 3,706 |
Not Designated as Hedging Instrument | Noncurrent Assets | Interest rate swap agreements | ||
Derivative instruments | ||
Fair value of derivative assets | 2,966 | 0 |
Not Designated as Hedging Instrument | Prepayments and other current assets | Foreign currency forward exchange contracts | ||
Derivative instruments | ||
Fair value of derivative assets | 36 | 80 |
Not Designated as Hedging Instrument | Prepayments and other current assets | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
Fair value of derivative assets | $ 5,495 | $ 3,626 |
Derivative Instruments - Locati
Derivative Instruments - Location of (Gain) Loss Reclassified from AOCI Into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Derivative instruments | ||
(Gain) loss recognized in income | $ (1,970) | $ (6,115) |
Designated as Hedging Instrument | Interest Expense | Cash Flow Hedging | Interest rate swap agreements | ||
Derivative instruments | ||
(Gain) loss reclassified from AOCI | 2,096 | 5,973 |
Not Designated as Hedging Instrument | ||
Derivative instruments | ||
(Gain) loss recognized in income | (4,066) | (12,088) |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | (1,900) | (4,400) |
Not Designated as Hedging Instrument | Interest Expense | Foreign currency forward exchange contracts | ||
Derivative instruments | ||
(Gain) loss recognized in income | (650) | (7,404) |
Not Designated as Hedging Instrument | Cost of services provided | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | $ (3,416) | $ (4,684) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 29, 2017 | Sep. 28, 2018 | Sep. 30, 2016 | |
Income Tax Contingency [Line Items] | |||
Federal statutory income tax rate, percent | 21.00% | 35.00% | |
Effect of Tax Cuts and Jobs Act of 2017, amount | $ 207.5 | ||
Provisional estimate of tax expense related to one time transition tax | 2.5 | ||
Foreign tax credit amount | 21.2 | ||
Valuation allowance | 21.2 | ||
Undistributed earnings of foreign subsidiaries | 41.2 | ||
Unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | $ 2.2 | ||
2018 Forecasted Rate | |||
Income Tax Contingency [Line Items] | |||
Blended federal statutory income tax rate, percent | 24.50% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | ||
Dec. 29, 2017 | Dec. 30, 2016 | Jan. 31, 2018 | |
Class of Stock [Line Items] | |||
Payments of dividends | $ 25,779 | $ 25,246 | |
Repurchase of common stock, (shares) | 0.6 | ||
Repurchase of common stock, value | $ 24,400 | ||
Common Stock | Subsequent Event | |||
Class of Stock [Line Items] | |||
Dividends payable, amount per share (in dollars per share) | $ 0.105 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Expense and Other Options (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 16.5 | $ 16.2 |
Taxes related to share-based compensation | 4.6 | 6 |
TBOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 5 | 5.3 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 5.8 | 6.4 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 5.3 | 3.6 |
Deferred Stock and Other Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 0.4 | $ 0.9 |
Share-Based Compensation - Opti
Share-Based Compensation - Options Granted and Weighted Average Grant Date Fair Value (Details) shares in Millions | 3 Months Ended |
Dec. 29, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 3.5 |
TBOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 1.9 |
Weighted-Average Grant-Date Fair Value (usd per unit) | $ / shares | $ 8.56 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 0.9 |
Weighted-Average Grant-Date Fair Value (usd per unit) | $ / shares | $ 40.74 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Granted | 0.7 |
Weighted-Average Grant-Date Fair Value (usd per unit) | $ / shares | $ 38.96 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Earnings: | ||
Net income attributable to Aramark stockholders | $ 292,284 | $ 125,339 |
Shares: | ||
Basic weighted-average shares outstanding (in shares) | 245,086 | 244,758 |
Effect of dilutive securities (in shares) | 7,158 | 7,835 |
Diluted weighted-average shares outstanding (in shares) | 252,244 | 252,593 |
Basic Earnings Per Share: | ||
Net income attributable to Aramark stockholders (in dollars per share) | $ 1.19 | $ 0.51 |
Diluted Earnings Per Share: | ||
Net income attributable to Aramark stockholders (in dollars per share) | $ 1.16 | $ 0.50 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 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) | 0.9 | 3.3 |
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) | 1.9 | 1.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Dec. 29, 2017USD ($) | |
Loss Contingencies [Line Items] | |
Maximum potential liability from vehicle leases | $ 110,900,000 |
Residual value guarantee, value assumptions, terminal fair value of vehicles coming off lease | 0 |
Residual value guarantee accrual | $ 0 |
Minimum | |
Loss Contingencies [Line Items] | |
Operating lease terms | 1 year |
Maximum | |
Loss Contingencies [Line Items] | |
Operating lease terms | 8 years |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017USD ($)segment | Dec. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Sales | $ 3,965,118 | $ 3,735,383 |
Operating Income | 219,037 | 244,055 |
Interest and Other Financing Costs, net | (76,299) | (65,677) |
Income Before Income Taxes | 142,738 | 178,378 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 270,600 | 270,700 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Operating Income | (51,600) | (26,600) |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 219,000 | 244,100 |
Interest and Other Financing Costs, net | (76,300) | (65,700) |
FSS United States | ||
Segment Reporting Information [Line Items] | ||
Sales | 2,649,500 | 2,531,200 |
FSS United States | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 180,100 | 176,300 |
FSS International | ||
Segment Reporting Information [Line Items] | ||
Sales | 913,000 | 808,700 |
FSS International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 46,000 | 40,600 |
Uniform | ||
Segment Reporting Information [Line Items] | ||
Sales | 402,600 | 395,500 |
Uniform | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | $ 44,500 | $ 53,800 |
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 Asset58
Fair Value of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 29, 2017 | Sep. 29, 2017 |
Fair Value Disclosure | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 7,213 | $ 5,450.1 |
Carrying Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 7,047.7 | $ 5,268.5 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Jan. 19, 2018USD ($) |
5.000% Senior Unsecured Notes, Due 2028 | |
Subsequent Event [Line Items] | |
Debt issued | $ 1,150,000,000 |
Interest rate stated percentage | 5.00% |
AmeriPride | |
Subsequent Event [Line Items] | |
Payments to acquire businesses, gross | $ 1,000,000,000 |
Condensed Consolidating Finan60
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 29, 2017 | Sep. 29, 2017 | Dec. 30, 2016 | Sep. 30, 2016 |
Current Assets: | ||||
Cash and cash equivalents | $ 185,663 | $ 238,797 | $ 146,951 | $ 152,580 |
Receivables | 1,813,276 | 1,615,993 | ||
Inventories | 614,914 | 610,732 | ||
Prepayments and other current assets | 198,434 | 187,617 | ||
Total current assets | 2,812,287 | 2,653,139 | ||
Property and Equipment, net | 1,035,233 | 1,042,031 | ||
Goodwill | 5,253,116 | 4,715,511 | ||
Investment in and Advances to Subsidiaries | 0 | 0 | ||
Other Intangible Assets | 1,901,528 | 1,120,824 | ||
Other Assets | 1,524,658 | 1,474,724 | ||
Assets | 12,526,822 | 11,006,229 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 71,173 | 78,157 | ||
Accounts payable | 833,429 | 955,925 | ||
Accrued expenses and other current liabilities | 1,107,965 | 1,334,013 | ||
Total current liabilities | 2,012,567 | 2,368,095 | ||
Long-Term Borrowings | 6,976,508 | 5,190,331 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 805,464 | 978,944 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 9,889 | 9,798 | ||
Total stockholders' equity | 2,722,394 | 2,459,061 | ||
Liabilities and Stockholders’ Equity | 12,526,822 | 11,006,229 | ||
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 | (10,179,276) | (8,365,240) | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | (2,002) | (2,002) | ||
Assets | (10,181,278) | (8,367,242) | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other current liabilities | 88 | 88 | ||
Total current liabilities | 88 | 88 | ||
Long-Term Borrowings | 0 | 0 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 0 | 0 | ||
Intercompany Payable | (6,191,486) | (5,971,543) | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | (3,989,880) | (2,395,787) | ||
Liabilities and Stockholders’ Equity | (10,181,278) | (8,367,242) | ||
Aramark (Parent) | Reportable Legal Entities | ||||
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 | 2,722,389 | 2,459,056 | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Assets | 2,722,394 | 2,459,061 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses and other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
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 | 2,722,394 | 2,459,061 | ||
Liabilities and Stockholders’ Equity | 2,722,394 | 2,459,061 | ||
Issuers | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 35,676 | 111,512 | 27,484 | 47,850 |
Receivables | 4,567 | 3,721 | ||
Inventories | 15,130 | 15,737 | ||
Prepayments and other current assets | 29,867 | 14,123 | ||
Total current assets | 85,240 | 145,093 | ||
Property and Equipment, net | 27,056 | 29,869 | ||
Goodwill | 173,104 | 173,104 | ||
Investment in and Advances to Subsidiaries | 6,855,179 | 5,248,858 | ||
Other Intangible Assets | 29,677 | 29,683 | ||
Other Assets | 54,525 | 53,538 | ||
Assets | 7,224,781 | 5,680,145 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 18,836 | 33,487 | ||
Accounts payable | 148,544 | 167,926 | ||
Accrued expenses and other current liabilities | 179,220 | 200,130 | ||
Total current liabilities | 346,600 | 401,543 | ||
Long-Term Borrowings | 6,115,649 | 4,460,730 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 392,738 | 425,297 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 369,794 | 392,575 | ||
Liabilities and Stockholders’ Equity | 7,224,781 | 5,680,145 | ||
Guarantors | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 35,464 | 37,513 | 28,984 | 31,344 |
Receivables | 357,469 | 303,664 | ||
Inventories | 517,885 | 514,267 | ||
Prepayments and other current assets | 76,697 | 83,404 | ||
Total current assets | 987,515 | 938,848 | ||
Property and Equipment, net | 765,273 | 775,362 | ||
Goodwill | 3,882,344 | 3,874,647 | ||
Investment in and Advances to Subsidiaries | 90,049 | 90,049 | ||
Other Intangible Assets | 908,770 | 914,000 | ||
Other Assets | 1,139,124 | 1,112,076 | ||
Assets | 7,773,075 | 7,704,982 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 20,444 | 20,330 | ||
Accounts payable | 338,940 | 461,192 | ||
Accrued expenses and other current liabilities | 581,017 | 814,542 | ||
Total current liabilities | 940,401 | 1,296,064 | ||
Long-Term Borrowings | 63,184 | 63,604 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 352,156 | 513,797 | ||
Intercompany Payable | 5,583,237 | 5,224,196 | ||
Redeemable Noncontrolling Interest | 9,889 | 9,798 | ||
Total stockholders' equity | 824,208 | 597,523 | ||
Liabilities and Stockholders’ Equity | 7,773,075 | 7,704,982 | ||
Non Guarantors | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 114,518 | 89,767 | $ 90,478 | $ 73,381 |
Receivables | 1,451,240 | 1,308,608 | ||
Inventories | 81,899 | 80,728 | ||
Prepayments and other current assets | 91,870 | 90,090 | ||
Total current assets | 1,739,527 | 1,569,193 | ||
Property and Equipment, net | 242,904 | 236,800 | ||
Goodwill | 1,197,668 | 667,760 | ||
Investment in and Advances to Subsidiaries | 511,659 | 567,277 | ||
Other Intangible Assets | 963,081 | 177,141 | ||
Other Assets | 333,011 | 311,112 | ||
Assets | 4,987,850 | 3,529,283 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 31,893 | 24,340 | ||
Accounts payable | 345,945 | 326,807 | ||
Accrued expenses and other current liabilities | 347,640 | 319,253 | ||
Total current liabilities | 725,478 | 670,400 | ||
Long-Term Borrowings | 797,675 | 665,997 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 60,570 | 39,850 | ||
Intercompany Payable | 608,249 | 747,347 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 2,795,878 | 1,405,689 | ||
Liabilities and Stockholders’ Equity | $ 4,987,850 | $ 3,529,283 |
Condensed Consolidating Finan61
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Statements of Income And Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Sales | $ 3,965,118 | $ 3,735,383 |
Costs and Expenses: | ||
Cost of services provided | 3,520,064 | 3,299,329 |
Depreciation and amortization | 133,849 | 126,527 |
Selling and general corporate expenses | 92,168 | 65,472 |
Interest and other financing costs, net | 76,299 | 65,677 |
Expense allocations | 0 | 0 |
Costs and Expenses | 3,822,380 | 3,557,005 |
Income Before Income Taxes | 142,738 | 178,378 |
Provision for Income Taxes | (149,702) | 52,943 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 292,440 | 125,435 |
Less: Net income attributable to noncontrolling interest | 156 | 96 |
Net income attributable to Aramark stockholders | 292,284 | 125,339 |
Other comprehensive income, net of tax | 11,604 | (24,682) |
Comprehensive income attributable to Aramark stockholders | 303,888 | 100,657 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 0 | 0 |
Costs and Expenses: | ||
Cost of services provided | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Selling and general corporate expenses | 0 | 0 |
Interest and other financing costs, net | 0 | 0 |
Expense allocations | 0 | 0 |
Costs and Expenses | 0 | 0 |
Income Before Income Taxes | 0 | 0 |
Provision for Income Taxes | 0 | 0 |
Equity in Net Income of Subsidiaries | (292,284) | (125,339) |
Net income | (292,284) | (125,339) |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | (292,284) | (125,339) |
Other comprehensive income, net of tax | (24,391) | 44,808 |
Comprehensive income attributable to Aramark stockholders | (316,675) | (80,531) |
Aramark (Parent) | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 0 | 0 |
Costs and Expenses: | ||
Cost of services provided | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Selling and general corporate expenses | 0 | 0 |
Interest and other financing costs, net | 0 | 0 |
Expense allocations | 0 | 0 |
Costs and Expenses | 0 | 0 |
Income Before Income Taxes | 0 | 0 |
Provision for Income Taxes | 0 | 0 |
Equity in Net Income of Subsidiaries | 292,284 | 125,339 |
Net income | 292,284 | 125,339 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 292,284 | 125,339 |
Other comprehensive income, net of tax | 11,604 | (24,682) |
Comprehensive income attributable to Aramark stockholders | 303,888 | 100,657 |
Issuers | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 258,271 | 252,379 |
Costs and Expenses: | ||
Cost of services provided | 225,216 | 228,812 |
Depreciation and amortization | 4,491 | 4,381 |
Selling and general corporate expenses | 53,666 | 28,367 |
Interest and other financing costs, net | 71,175 | 61,353 |
Expense allocations | (65,203) | (76,019) |
Costs and Expenses | 289,345 | 246,894 |
Income Before Income Taxes | (31,074) | 5,485 |
Provision for Income Taxes | (20,709) | 1,477 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | (10,365) | 4,008 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | (10,365) | 4,008 |
Other comprehensive income, net of tax | 5,389 | 25,467 |
Comprehensive income attributable to Aramark stockholders | (4,976) | 29,475 |
Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 2,643,266 | 2,528,456 |
Costs and Expenses: | ||
Cost of services provided | 2,320,190 | 2,197,649 |
Depreciation and amortization | 105,895 | 102,183 |
Selling and general corporate expenses | 33,698 | 32,481 |
Interest and other financing costs, net | 68 | (632) |
Expense allocations | 61,110 | 73,872 |
Costs and Expenses | 2,520,961 | 2,405,553 |
Income Before Income Taxes | 122,305 | 122,903 |
Provision for Income Taxes | (142,447) | 36,316 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 264,752 | 86,587 |
Less: Net income attributable to noncontrolling interest | 156 | 96 |
Net income attributable to Aramark stockholders | 264,596 | 86,491 |
Other comprehensive income, net of tax | 0 | (1,927) |
Comprehensive income attributable to Aramark stockholders | 264,596 | 84,564 |
Non Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Sales | 1,063,581 | 954,548 |
Costs and Expenses: | ||
Cost of services provided | 974,658 | 872,868 |
Depreciation and amortization | 23,463 | 19,963 |
Selling and general corporate expenses | 4,804 | 4,624 |
Interest and other financing costs, net | 5,056 | 4,956 |
Expense allocations | 4,093 | 2,147 |
Costs and Expenses | 1,012,074 | 904,558 |
Income Before Income Taxes | 51,507 | 49,990 |
Provision for Income Taxes | 13,454 | 15,150 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 38,053 | 34,840 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 38,053 | 34,840 |
Other comprehensive income, net of tax | 19,002 | (68,348) |
Comprehensive income attributable to Aramark stockholders | $ 57,055 | $ (33,508) |
Condensed Consolidating Finan62
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 29, 2017 | Dec. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | $ (311,449) | $ (26,026) |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (118,907) | (106,600) |
Disposals of property and equipment | 1,160 | 1,349 |
Acquisitions of businesses, net of cash acquired | (1,321,688) | (1,045) |
Other investing activities | (3,351) | 166 |
Net cash (used in) provided by investing activities | (1,442,786) | (106,130) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 2,279,287 | 45,987 |
Payments of long-term borrowings | (647,622) | (13,609) |
Net change in funding under the Receivables Facility | 136,050 | 132,000 |
Payments of dividends | (25,779) | (25,246) |
Proceeds from issuance of common stock | 4,929 | 3,121 |
Repurchase of stock | (24,410) | 0 |
Other financing activities | (21,354) | (15,726) |
Change in intercompany, net | 0 | 0 |
Net cash provided by (used in) financing activities | 1,701,101 | 126,527 |
(Decrease) increase in cash and cash equivalents | (53,134) | (5,629) |
Cash and cash equivalents, beginning of period | 238,797 | 152,580 |
Cash and cash equivalents, end of period | 185,663 | 146,951 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (35,003) | (610) |
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) provided by 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 | 35,003 | 610 |
Net cash provided by (used in) financing activities | 35,003 | 610 |
(Decrease) 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) | Reportable Legal Entities | ||
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) provided by 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 |
(Decrease) 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 | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (63,662) | 102,805 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (2,166) | (4,921) |
Disposals of property and equipment | 112 | 49 |
Acquisitions of businesses, net of cash acquired | (1,386,378) | 0 |
Other investing activities | 342 | (1,836) |
Net cash (used in) provided by investing activities | (1,388,090) | (6,708) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 2,270,600 | 40,900 |
Payments of long-term borrowings | (633,997) | (5,484) |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | (25,779) | (25,246) |
Proceeds from issuance of common stock | 4,929 | 3,121 |
Repurchase of stock | (24,410) | |
Other financing activities | (20,859) | (15,300) |
Change in intercompany, net | (194,568) | (114,454) |
Net cash provided by (used in) financing activities | 1,375,916 | (116,463) |
(Decrease) increase in cash and cash equivalents | (75,836) | (20,366) |
Cash and cash equivalents, beginning of period | 111,512 | 47,850 |
Cash and cash equivalents, end of period | 35,676 | 27,484 |
Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (191,802) | (168,396) |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (101,674) | (88,327) |
Disposals of property and equipment | 515 | 546 |
Acquisitions of businesses, net of cash acquired | (22,565) | 0 |
Other investing activities | (61) | (3,083) |
Net cash (used in) provided by investing activities | (123,785) | (90,864) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | (4,672) | (4,591) |
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 | (495) | (361) |
Change in intercompany, net | 318,705 | 261,852 |
Net cash provided by (used in) financing activities | 313,538 | 256,900 |
(Decrease) increase in cash and cash equivalents | (2,049) | (2,360) |
Cash and cash equivalents, beginning of period | 37,513 | 31,344 |
Cash and cash equivalents, end of period | 35,464 | 28,984 |
Non Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (20,982) | 40,175 |
Cash flows from investing activities: | ||
Purchases of property and equipment, client contract investments and other | (15,067) | (13,352) |
Disposals of property and equipment | 533 | 754 |
Acquisitions of businesses, net of cash acquired | 87,255 | (1,045) |
Other investing activities | (3,632) | 5,085 |
Net cash (used in) provided by investing activities | 69,089 | (8,558) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 8,687 | 5,087 |
Payments of long-term borrowings | (8,953) | (3,534) |
Net change in funding under the Receivables Facility | 136,050 | 132,000 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of stock | 0 | |
Other financing activities | 0 | (65) |
Change in intercompany, net | (159,140) | (148,008) |
Net cash provided by (used in) financing activities | (23,356) | (14,520) |
(Decrease) increase in cash and cash equivalents | 24,751 | 17,097 |
Cash and cash equivalents, beginning of period | 89,767 | 73,381 |
Cash and cash equivalents, end of period | $ 114,518 | $ 90,478 |