Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 28, 2018 | Jan. 25, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 28, 2018 | |
Document Fiscal Year Focus | 2,019 | |
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 | --09-27 | |
Entity Common Stock, Shares Outstanding | 246,296,999 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 29, 2017 | Sep. 29, 2017 |
Current Assets: | ||||
Cash and cash equivalents | $ 249,881 | $ 215,025 | $ 185,663 | $ 238,797 |
Receivables (less allowances: 2019 - $51,399; 2018 - $52,682) | 1,880,299 | 1,790,433 | ||
Inventories | 371,111 | 724,802 | ||
Prepayments and other current assets | 148,697 | 171,165 | ||
Total current assets | 2,649,988 | 2,901,425 | ||
Property and Equipment, net | 2,153,154 | 1,378,094 | ||
Goodwill | 5,508,603 | 5,610,568 | ||
Other Intangible Assets | 2,096,893 | 2,136,844 | ||
Other Assets | 1,330,304 | 1,693,171 | ||
Assets | 13,738,942 | 13,720,102 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 53,441 | 30,907 | ||
Accounts payable | 866,162 | 1,018,920 | ||
Accrued expenses and other current liabilities | 1,277,672 | 1,440,332 | ||
Total current liabilities | 2,197,275 | 2,490,159 | ||
Long-Term Borrowings | 7,323,706 | 7,213,077 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 990,021 | 977,215 | ||
Redeemable Noncontrolling Interest | 10,047 | 10,093 | ||
Stockholders' Equity: | ||||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—280,666,074 shares and 2018—279,314,297 shares; and outstanding: 2019—245,883,193 shares and 2018—246,744,438 shares) | 2,807 | 2,793 | ||
Capital surplus | 3,154,479 | 3,132,421 | ||
Retained earnings | 990,439 | 710,519 | ||
Accumulated other comprehensive loss | (132,996) | (91,223) | ||
Treasury stock (shares held in treasury: 2019—34,782,881 shares and 2018—32,569,859 shares) | (796,836) | (724,952) | ||
Total stockholders' equity | 3,217,893 | 3,029,558 | ||
Liabilities and Equity | $ 13,738,942 | $ 13,720,102 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 51,399 | $ 52,682 |
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) | 280,666,074 | 279,314,297 |
Common stock, shares outstanding (in shares) | 246,123,886 | 246,744,438 |
Treasury stock, shares held in treasury (in shares) | 34,542,188 | 32,569,859 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 4,265,349 | $ 3,965,118 |
Costs and Expenses: | ||
Cost of services provided | 3,794,445 | 3,522,230 |
Depreciation and amortization | 150,721 | 133,849 |
Selling and general corporate expenses | 104,130 | 92,168 |
Gain on sale of Healthcare Technologies | (157,309) | 0 |
Costs and Expenses | 3,891,987 | 3,748,247 |
Operating income | 373,362 | 216,871 |
Interest and Other Financing Costs, net | 82,978 | 74,133 |
Income Before Income Taxes | 290,384 | 142,738 |
(Benefit) Provision for Income Taxes | 39,708 | (149,702) |
Net income | 250,676 | 292,440 |
Less: Net income (loss) attributable to noncontrolling interest | (6) | 156 |
Net income attributable to Aramark stockholders | $ 250,682 | $ 292,284 |
Earnings per share attributable to Aramark stockholders: | ||
Basic (in dollars per share) | $ 1.02 | $ 1.19 |
Diluted (in dollars per share) | $ 0.99 | $ 1.16 |
Weighted Average Shares Outstanding: | ||
Basic (in shares) | 246,887 | 245,086 |
Diluted (in shares) | 253,656 | 252,244 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 250,676 | $ 292,440 |
Other comprehensive income (loss), net of tax | ||
Pension plan adjustments | 753 | 0 |
Foreign currency translation adjustments | (18,007) | 6,384 |
Fair value of cash flow hedges | (24,239) | 5,205 |
Share of equity investee's comprehensive income (loss) | (280) | 15 |
Other comprehensive income (loss), net of tax | (41,773) | 11,604 |
Comprehensive income | 208,903 | 304,044 |
Less: Net income (loss) attributable to noncontrolling interest | (6) | 156 |
Comprehensive income attributable to Aramark stockholders | $ 208,909 | $ 303,888 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 250,676 | $ 292,440 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 150,721 | 133,849 |
Deferred income taxes | (5,764) | (178,231) |
Share-based compensation expense | 18,562 | 16,489 |
Net gain on sale of Healthcare Technologies | (140,165) | 0 |
Changes in operating assets and liabilities: | ||
Accounts Receivable | (145,634) | (121,828) |
Inventories | (7,858) | (2,360) |
Prepayments and Other Current Assets | (47) | 4,321 |
Accounts Payable | (132,285) | (127,343) |
Accrued Expenses | (150,229) | (343,683) |
Other operating activities | (45,391) | 14,897 |
Net cash used in operating activities | (207,414) | (311,449) |
Cash flows from investing activities: | ||
Purchases of property and equipment and other assets | (114,400) | (118,907) |
Disposals of property and equipment | 954 | 1,160 |
Proceeds from divestiture | 293,711 | 0 |
Acquisition of certain businesses, net of cash acquired | (5,257) | (1,321,688) |
Other investing activities | 19,143 | (3,351) |
Net cash provided by (used in) investing activities | 194,151 | (1,442,786) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 72,723 | 2,279,287 |
Payments of long-term borrowings | (314,031) | (647,622) |
Net change in funding under the Receivables Facility | 390,000 | 136,050 |
Payments of dividends | (27,161) | (25,779) |
Proceeds from issuance of common stock | 1,077 | 4,929 |
Repurchase of stock | (50,000) | (24,410) |
Other financing activities | (24,489) | (21,354) |
Net cash provided by financing activities | 48,119 | 1,701,101 |
Increase (decrease) in cash and cash equivalents | 34,856 | (53,134) |
Cash and cash equivalents, beginning of period | 215,025 | 238,797 |
Cash and cash equivalents, end of period | 249,881 | 185,663 |
Supplemental Cash Flow Information | ||
Interest paid | 80,200 | 69,300 |
Income taxes paid | $ 57,700 | $ 63,200 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Capital Surplus | Retained Earnings / (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance Beginning at Sep. 29, 2017 | $ 2,459,061 | $ 2,771 | $ 3,014,546 | $ 247,050 | $ (123,760) | $ (681,546) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Aramark stockholders | 292,284 | 292,284 | |||||
Other comprehensive income, net of tax | $ 11,604 | 11,604 | 11,604 | ||||
Capital contributions from issuance of common stock | 8,499 | 11 | 8,488 | ||||
Share-based compensation expense | 16,489 | 16,489 | |||||
Repurchases of Common Stock | (38,463) | (38,463) | |||||
Payments of dividends | (27,080) | (27,080) | |||||
Balance Ending at Dec. 29, 2017 | 2,722,394 | 2,782 | 3,039,523 | 512,254 | (112,156) | (720,009) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of new accounting standard | 58,395 | 58,395 | |||||
Balance Beginning at Sep. 28, 2018 | 3,029,558 | 3,029,558 | 2,793 | 3,132,421 | 710,519 | (91,223) | (724,952) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Aramark stockholders | 250,682 | 250,682 | |||||
Other comprehensive income, net of tax | (41,773) | (41,773) | (41,773) | ||||
Capital contributions from issuance of common stock | 3,510 | 14 | 3,496 | ||||
Share-based compensation expense | 18,562 | 18,562 | |||||
Repurchases of Common Stock | (71,884) | (71,884) | |||||
Payments of dividends | (29,157) | (29,157) | |||||
Balance Ending at Dec. 28, 2018 | $ 3,217,893 | $ 3,217,893 | $ 2,807 | $ 3,154,479 | $ 990,439 | $ (132,996) | $ (796,836) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 28, 2018 | |
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"). 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 21, 2018 . The Condensed Consolidated Balance Sheet as of September 28, 2018 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 the 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 Adopted Standards In October 2018, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which permits the use of the Secured Overnight Financing Rate Overnight Index Swap Rate as a U.S. benchmark interest rate for hedge accounting purposes. The guidance is effective for the Company in the first quarter of fiscal 2020 and early adoption was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the condensed consolidated financial statements, as the Company's existing interest rate hedges use LIBOR as the benchmark interest rate. Use of the Secured Overnight Financing Rate Overnight Index Swap Rate as the benchmark interest rate may be contemplated in future hedging arrangements. In February 2018, the FASB issued an ASU which provides clarification regarding guidance related to the financial instrument standard. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the condensed consolidated financial statements. 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 was permitted. The Company adopted this standard in the first quarter of fiscal 2019, which did not have a material 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 was permitted. The Company adopted the guidance during the first quarter of fiscal 2019, which did not result in an impact to net income. However, certain balances, including $2.2 million for the three month period ended December 29, 2017 , were reclassified from "Cost of services provided" to "Interest and Other Financing Costs, net" on the Condensed Consolidated Statements of Income. The Company applied the practical expedient allowing for the use of amounts disclosed in the pension footnote for prior comparative periods as an estimation basis for applying the retrospective presentation requirements. 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 was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the condensed consolidated financial statements. 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 was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, using the prospective method, which did not have a material impact on the condensed consolidated financial statements. In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Under this guidance, equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee, are to be measured at fair value with the changes in fair value recognized in net income. The guidance is effective for the Company in the first quarter of fiscal 2019. The Company adopted the guidance in the first quarter of fiscal 2019. Due to the lack of readily available fair values for the Company's equity investments, other than those accounted for under the equity method of accounting, the Company elected to apply the practical expedient to measure these investments at cost minus impairment plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The guidance did not have an impact to the Company's condensed consolidated financial statements. In May 2014, the FASB issued an ASU on revenue from contracts with customers which supersedes most current revenue recognition guidance. The standard outlines a single comprehensive model which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Additionally, the standard requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this guidance on September 29, 2018. In connection with the new revenue recognition guidance, the Company completed a comprehensive contract review project and an evaluation of the standard's impact on the timing and presentation of various financial aspects of its contractual arrangements. The Company identified and implemented appropriate changes to business processes, controls and systems to support recognition and disclosure under the new standard. The adoption of the guidance did not have a material impact on the timing of revenue recognition or net income, but it did have an impact on the financial statement line item classification of certain items (see Note 7). The Company adopted the new revenue recognition guidance using the modified retrospective transition method. This method allows the new standard to be applied retrospectively through a cumulative catch up adjustment recognized upon adoption. As such, comparative information in the Company’s financial statements has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative transition adjustment, net of tax, was an increase to retained earnings upon adoption (approximately $58.4 million ) mainly to capitalize costs to obtain contracts related to employee commissions previously expensed. See Note 1 to the Company’s consolidated financial statements in its fiscal 2018 Form 10-K for further information on its significant accounting policies related to revenue recognition and see Note 7 for further information on the impact of adopting the new revenue recognition standard. Standards Not Yet Adopted (from most to least recent date of issuance) In August 2018, the FASB issued an ASU which adds, modifies and removes several disclosure requirements related to defined benefit pension plans. The guidance is effective for the Company in the first quarter of fiscal 2022 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In August 2018, the FASB issued an ASU which adds, modifies and removes several disclosure requirements related to fair value measurements. 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 July 2018, the FASB issued two ASUs regarding the lease recognition standard. The guidance provides clarification on issues identified regarding the adoption of the standard, provides an additional transition method to adopt the standard and provides an additional practical expedient to lessors. 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 July 2018, the FASB issued an ASU which clarifies, corrects errors in or makes minor improvements to the Codification. The guidance is effective for the Company either upon issuance or in the first quarter of fiscal 2020, depending on the amendment. There was no impact on the consolidated financial statements related to the amendments that were effective upon issuance of the guidance and the Company is currently evaluating the impact of the remaining amendments of the pronouncement. In February 2018, the FASB issued an ASU which allows for the reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. 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 September 2017, the FASB issued an ASU to provide additional implementation guidance with respect to the revenue recognition standard (see above) and the leases recognition standard (see below). The guidance is effective for the Company in the first quarter of fiscal 2019 with respect to the revenue recognition standard and in the first quarter of fiscal 2020 with respect to the lease recognition standard. Early adoption is permitted. The Company adopted the revenue related portions of this standard in conjunction with the revenue recognition standard during the first quarter of fiscal 2019, as described above. The lease related portions of this standard will be adopted in a future period in conjunction with the lease recognition standard. 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 continues to review 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 Condensed Consolidated Balance Sheets, but does not expect it to have a significant impact in its Condensed Consolidated Statements of Income or Cash Flows. 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 (loss), 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 28, 2018 December 29, 2017 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 250,676 $ 292,440 Pension plan adjustments 753 — 753 — — — Foreign currency translation adjustments (17,876 ) (131 ) (18,007 ) 6,384 — 6,384 Fair value of cash flow hedges (32,702 ) 8,463 (24,239 ) 7,341 (2,136 ) 5,205 Share of equity investee's comprehensive income (loss) (280 ) — (280 ) 15 — 15 Other comprehensive income (loss) (50,105 ) 8,332 (41,773 ) 13,740 (2,136 ) 11,604 Comprehensive income 208,903 304,044 Less: Net income attributable to noncontrolling interest (6 ) 156 Comprehensive income attributable to Aramark stockholders $ 208,909 $ 303,888 Accumulated other comprehensive loss consists of the following (in thousands): December 28, 2018 September 28, 2018 Pension plan adjustments $ (23,875 ) $ (24,628 ) Foreign currency translation adjustments (111,818 ) (93,811 ) Cash flow hedges 11,953 36,192 Share of equity investee's accumulated other comprehensive loss (9,256 ) (8,976 ) $ (132,996 ) $ (91,223 ) Currency Translation During fiscal 2018, Argentina was determined to have a highly inflationary economy. As a result, the Company remeasured the financial statements of Argentina's operations in accordance with the accounting guidance for highly inflationary economies. During the first quarter of fiscal 2019 , the impact of the foreign currency transaction was immaterial to the condensed consolidated financial statements. Other Assets Other assets consist primarily of costs to obtain or fulfill contracts, long-term prepaid rent, investments in 50% or less owned entities, computer software costs, long-term receivables and personalized work apparel, linens and other rental items in service . |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Dec. 28, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | AmeriPride Services, Inc. ("AmeriPride") Acquisition On January 19, 2018, the Company completed the acquisition of AmeriPride, a uniform and linen rental and supply company in the U.S. and Canada, 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. Upon completion of the acquisition, AmeriPride became a wholly owned subsidiary of the Company and its results will be included in the Company's Uniform segment. The total consideration paid for AmeriPride was $995.4 million , partially offset by $84.9 million of cash acquired. In order to finance the AmeriPride acquisition, the Company entered into a long-term financing agreement. Consideration The Company has accounted for the AmeriPride acquisition as a business combination under the acquisition method of accounting. The Company has finalized its allocation of the purchase price for the transaction based upon the fair value of net assets acquired and liabilities assumed at the date of acquisition. 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 fair values of the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands): Current assets $ 237,807 Noncurrent assets 963,078 Total assets $ 1,200,885 Current liabilities $ 137,867 Noncurrent liabilities 67,590 Total liabilities $ 205,457 Intangible Assets The following table identifies the Company’s allocations of purchase price to the intangible assets acquired by category: Estimated Fair Weighted- Customer relationship assets $ 297.0 15 Trade names 24.0 3 to indefinite Total intangible assets $ 321.0 The 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 fair value of the two trade names acquired 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 $365.2 million of goodwill in connection with its purchase price allocation relating to the AmeriPride acquisition, all of which was recognized in the Uniform reporting segment. Factors that contributed to the Company’s recognition of goodwill include the Company’s intent to expand and complement its existing uniform business and to enhance its customer service experience, in addition to the anticipated synergies the Company expects to generate from the acquisition. Revenue and Earnings for AmeriPride The revenue for AmeriPride included in the Company's Condensed Consolidated Statements of Income for the three months ended December 28, 2018 was $165.0 million , which includes the impact from the adoption of the new revenue recognition standard. Net income for AmeriPride during the three months ended December 28, 2018 was immaterial. The effects of the acquisition on pro forma revenue and net income of the combined entity were not material for the three months ended December 29, 2017 . |
Severance
Severance | 3 Months Ended |
Dec. 28, 2018 | |
Restructuring and Related Activities [Abstract] | |
Severance | SEVERANCE: During fiscal 2018, the Company commenced a new phase of strategic reinvestment and reorganization actions to streamline and improve efficiencies and effectiveness of its selling, general and administrative functions which resulted in a net severance charge of approximately $22.0 million for the three months ended December 28, 2018 . As of December 28, 2018 and September 28, 2018 , the Company had an accrual of approximately $31.0 million and $16.6 million , respectively, related to unpaid severance obligations. These obligations are expected to be paid through fiscal 2019. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Dec. 28, 2018 | |
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 28, 2018 is as follows (in thousands): Segment September 28, 2018 Acquisitions and Divestitures Translation December 28, 2018 FSS United States $ 4,028,454 $ (86,981 ) $ — $ 3,941,473 FSS International 626,379 — (16,282 ) 610,097 Uniform 955,735 1,941 (643 ) 957,033 $ 5,610,568 $ (85,040 ) $ (16,925 ) $ 5,508,603 Other intangible assets consist of the following (in thousands): December 28, 2018 September 28, 2018 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 2,201,474 $ (1,149,683 ) $ 1,051,791 $ 2,244,215 $ (1,156,811 ) $ 1,087,404 Trade names 1,046,987 (1,885 ) 1,045,102 1,050,825 (1,385 ) 1,049,440 $ 3,248,461 $ (1,151,568 ) $ 2,096,893 $ 3,295,040 $ (1,158,196 ) $ 2,136,844 Amortization of intangible assets for the three months ended December 28, 2018 and December 29, 2017 was approximately $30.4 million and $23.3 million , respectively. |
Borrowings
Borrowings | 3 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS: Long-term borrowings, net, are summarized in the following table (in thousands): December 28, 2018 September 28, 2018 Senior secured revolving credit facility, due October 2023 $ 47,973 $ 77,000 Senior secured term loan facility, due October 2023 520,568 538,674 Senior secured term loan facility, due March 2024 1,126,220 1,325,923 Senior secured term loan facility, due March 2025 1,657,192 1,656,919 5.125% senior notes, due January 2024 902,769 902,908 5.000% senior notes, due April 2025 591,179 590,884 3.125% senior notes, due April 2025 (1) 368,195 373,240 4.750% senior notes, due June 2026 494,241 494,082 5.000% senior notes, due February 2028 1,136,754 1,136,472 Receivables Facility, due May 2021 390,000 — Capital leases 137,978 143,388 Other 4,078 4,494 7,377,147 7,243,984 Less—current portion (53,441 ) (30,907 ) $ 7,323,706 $ 7,213,077 (1) This is a Euro denominated borrowing. As of December 28, 2018 , there was approximately $938.3 million of outstanding foreign currency borrowings. Fiscal 2019 Refinancing Transactions During the first quarter of fiscal 2019 , the Company extended the maturity dates of the Revolving Credit Facility, Yen Term Loan due 2022, Canadian Term Loan due 2022, Canadian Term Loan due 2023 and Euro Term Loan due 2022 to October 1, 2023. Also during the first quarter of fiscal 2019 , the Company made an optional prepayment of approximately $200.0 million on the U.S. dollar denominated term loan due 2024. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Dec. 28, 2018 | |
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, and how the hedging instrument's effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively. 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 $2.6 billion notional amount of outstanding interest rate swap agreements as of December 28, 2018 , which fixes the rate on a like amount of variable rate borrowings through the first quarter of fiscal 2023. During the second quarter of fiscal 2019 , the Company entered into approximately $500.0 million notional amount of forward starting interest rate swap agreements to hedge the cash flow risk of variability in interest payments on variable rate borrowings. 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. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. As of December 28, 2018 and September 28, 2018 , approximately $12.0 million and $36.2 million of unrealized net of tax gains (losses) related to the interest rate swaps were included in "Accumulated other comprehensive loss," respectively. The following table summarizes the effect of our derivatives designated as cash flow hedging instruments on Other comprehensive income (loss) (in thousands): Three Months Ended December 28, 2018 December 29, 2017 Interest rate swap agreements $ (31,000 ) $ 5,245 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 28, 2018 , the Company has contracts for approximately 12.9 million gallons outstanding through fiscal 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 loss of approximately $9.2 million for the three months ended December 28, 2018 . 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 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 28, 2018 , the Company had foreign currency forward exchange contracts outstanding with notional amounts of €16.0 million and £10.7 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 14 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments in the Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location December 28, 2018 September 28, 2018 ASSETS Designated as hedging instruments: Interest rate swap agreements Prepayments and other current assets $ — $ 1,459 Interest rate swap agreements Noncurrent Assets $ 24,355 $ 54,708 Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ 31 $ 209 Gasoline and diesel fuel agreements Prepayments and other current assets $ — $ 3,623 $ 24,386 $ 59,999 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Other Noncurrent Liabilities $ 205 $ — Not designated as hedging instruments: Gasoline and diesel fuel agreements Accounts payable $ 5,604 $ — $ 5,809 $ — 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 our derivatives not designated as hedging instruments in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Income Statement Location December 28, 2018 December 29, 2017 Designated as hedging instruments: Interest rate swap agreements Interest expense $ (1,702 ) $ 2,096 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 9,144 $ (3,416 ) Foreign currency forward exchange contracts Interest expense 178 (650 ) 9,322 (4,066 ) $ 7,620 $ (1,970 ) At December 28, 2018 , 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 $7.1 million . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION: The Company generates revenue through sales of food, facility and uniform services to customers based on written contracts at the locations we serve, primarily accounted for under the series guidance. Within our FSS United States and FSS International segments, we provide food and beverage services, including catering and retail services, or facilities services, including plant operations and maintenance, custodial, housekeeping, energy management, grounds keeping, landscaping, transportation and capital project management. Within our Uniform segment, the Company provides a full service uniform solution, including delivery, cleaning and maintenance. In accordance with Accounting Standards Codification 606 ("ASC 606"), the Company accounts for a customer contract when both parties have approved the contract and are committed to perform their respective obligations, each party's rights can be identified, payment terms can be identified, the contract has commercial substance and it is probable the Company will collect substantially all of the consideration to which it is entitled. Revenue is recognized upon the transfer of control of the promised product or service to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods and services. Performance Obligations The Company recognizes revenue when its performance obligation is satisfied. The Company generally has one performance obligation, which is satisfied over time. Where appropriate, the Company elected to apply the right to invoice practical expedient to record revenue as the services are provided, given the nature of the services provided and the frequency of billing under the customer contracts. Under this practical expedient, the Company recognizes revenue in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date and for which the Company has the right to invoice the customer. When the right to invoice practical expedient is not permitted, the Company accounts for the services under the series guidance. Certain arrangements include performance obligations which include variable consideration (primarily per transaction fees). For these arrangements, the Company does not need to estimate the variable consideration for the contract and allocate to the entire performance obligation, rather the variable fees are recognized in the period they are earned. Impact of New Revenue Recognition Standard As a result of adoption of the new standard, the following changes occurred with respect to financial statement line item classification in the Company's condensed consolidated financial statements: Transition Adjustment : • costs to obtain contracts related to employee sales commissions, previously expensed to “Cost of services provided” at contract inception, are now capitalized in “Other Assets” (approximately $97.2 million and $100.7 million as of September 29, 2018 and December 28, 2018 , respectively; Other Adjustments: • certain fees, approximately $95.3 million for the first quarter of fiscal 2019 , in the Uniform segment, previously recognized as a reduction to “Cost of services provided,” are now recognized in “Revenue;” • client contract investments, previously capitalized within “Other Assets” and amortized to “Depreciation and amortization” will continue to be expensed over the contract life as either a leasehold improvement in “Property and equipment, net” (approximately $797.3 million as of December 28, 2018 ) or as long-term prepaid rent or costs to fulfill in “Other Assets” (approximately $181.0 million and $116.3 million as of December 28, 2018 , respectively) and primarily classified in “Depreciation and amortization” or “Cost of services provided;” and • costs to fulfill contracts related to personalized work apparel, linens and other rental items in service, previously capitalized within "Inventories" will now be capitalized within "Other Assets" ( $346.5 million ) December 28, 2018 , respectively. The following table compares the reported Condensed Consolidated Balance Sheet as of December 28, 2018 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): December 28, 2018 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 ASSETS Current Assets: Cash and cash equivalents $ 249,881 $ — $ 249,881 Receivables, net 1,880,299 — 1,880,299 Inventories 371,111 346,549 717,660 Prepayments and other current assets 148,697 — 148,697 Total current assets 2,649,988 346,549 2,996,537 Property and Equipment, net 2,153,154 (797,262 ) 1,355,892 Goodwill 5,508,603 — 5,508,603 Other Intangible Assets 2,096,893 — 2,096,893 Other Assets 1,330,304 349,763 1,680,067 $ 13,738,942 $ (100,950 ) $ 13,637,992 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ 53,441 $ — $ 53,441 Accounts payable 866,162 — 866,162 Accrued expenses and other current liabilities 1,277,672 (23,526 ) 1,254,146 Total current liabilities 2,197,275 (23,526 ) 2,173,749 Long-Term Borrowings 7,323,706 — 7,323,706 Deferred Income Taxes and Other Noncurrent Liabilities 990,021 (21,108 ) 968,913 Redeemable Noncontrolling Interest 10,047 — 10,047 Stockholders' Equity: Common stock 2,807 — 2,807 Capital surplus 3,154,479 — 3,154,479 Retained earnings 990,439 (56,316 ) 934,123 Accumulated other comprehensive loss (132,996 ) — (132,996 ) Treasury stock (796,836 ) — (796,836 ) Total stockholders' equity 3,217,893 (56,316 ) 3,161,577 $ 13,738,942 $ (100,950 ) $ 13,637,992 The following table compares the reported Condensed Consolidated Statements of Income for the three month period ended December 28, 2018 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): Three Months Ended December 28, 2018 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 Revenue $ 4,265,349 $ (88,507 ) $ 4,176,842 Costs and Expenses: Cost of services provided 3,794,445 (88,707 ) 3,705,738 Depreciation and amortization 150,721 3,006 153,727 Selling and general corporate expenses 104,130 — 104,130 Gain on sale of Healthcare Technologies (157,309 ) — (157,309 ) 3,891,987 (85,701 ) 3,806,286 Operating income 373,362 (2,806 ) 370,556 Interest and Other Financing Costs, net 82,978 — 82,978 Income Before Income Taxes 290,384 (2,806 ) 287,578 (Benefit) Provision for Income Taxes 39,708 (727 ) 38,981 Net income 250,676 (2,079 ) 248,597 Less: Net income (loss) attributable to noncontrolling interest (6 ) — (6 ) Net income attributable to Aramark stockholders $ 250,682 $ (2,079 ) $ 248,603 Disaggregation of Revenue The following table presents revenue disaggregated by revenue source (in millions): Three Months Ended December 28, 2018 FSS United States: Business & Industry $ 399.9 Education 1,016.3 Healthcare 263.3 Sports, Leisure & Corrections 594.3 Facilities & Other 386.5 Total FSS United States $ 2,660.3 FSS International: Europe 520.1 Rest of World 433.0 Total FSS International $ 953.1 Uniform $ 651.9 Total Revenue $ 4,265.3 Contract Balances The Company defers sales commissions earned by our sales force that are considered to be incremental and recoverable costs of obtaining a contract tied to its food, facilities and uniform services. The deferred costs are amortized using the portfolio approach on a straight line basis over the average period of benefit and is assessed for impairment on a periodic basis. Determination of the amortization period and the subsequent assessment for impairment of the contract cost asset requires judgment. During the three months ended December 28, 2018, the Company expensed approximately $3.6 million of these costs to “Cost of services provided” in the Condensed Consolidated Statements of Income. Costs to fulfill contracts includes payments made by the Company to enhance the service resources used by the Company to satisfy its performance obligation. These amounts are amortized over the contract period. If a contract is terminated prior to its maturity date, the Company is typically reimbursed for the unamortized amount. During the three months ended December 28, 2018 , the Company expensed approximately $5.1 million of these costs to "Depreciation and amortization" in the Condensed Consolidated Statements of Income. Costs to fulfill contracts within the Uniform segment represent personalized work apparel, linens and other rental items in service. The amounts are recorded at cost and are amortized over their estimated useful lives, which primarily range from one to four years. The amortization rates used are based on the Company's specific experience. The Company recorded expense of approximately $79.1 million during the three months ended December 28, 2018 related to these costs, which was recorded in "Costs of services provided" in the Condensed Consolidated Statements of Income. Deferred income is recognized on the Condensed Consolidated Balance Sheets when the Company has received consideration, or has the right to receive consideration, in advance of the transfer of the performance obligation of the contract to the customer, primarily prepaid meal plans. The consideration received remains a liability until the goods or services have been provided to the customer. The Company classifies deferred revenue as current as the term between when the Company performs and when payment is received is not significant. During the three months ended December 28, 2018 , deferred income increased related to customer prepayments and decreased related to income recognized during the period as a result of the redemption of the advanced consideration. Below is a summary of the changes (in millions): Balance, September 28, 2018 Add: Net increase in current period deferred income Less: Recognition of deferred income Balance, December 28, 2018 Deferred income $ 281.5 155.3 (284.4 ) $ 152.4 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2018 | |
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 revised the U.S. tax code by, among other things, lowering the corporate income tax rate from 35.0% to 21.0% and implementing new international tax provisions that include a one-time transition tax on deemed repatriated earnings of foreign subsidiaries. Though certain key aspects of the new law were effective January 1, 2018 and had an immediate accounting impact, other significant provisions were not effective or did not result in accounting implications for the Company until after the fiscal year-end September 28, 2018. The provisions effective for fiscal 2019 are the tax on "Global Intangible Low-Taxed Income" ("GILTI"), the deduction for "Foreign-Derived Intangible Income" ("FDII"), the 163(j) limitation on interest expense and the 162(m) limitation on certain executive compensation. During fiscal 2018, the Company made reasonable estimates related to certain impacts of the Tax Legislation and, in accordance with the Securities and Exchange Commission (“SEC”) Staff Accountant Bulletin No. 118, Income Tax Accounting Implications of the Tax Cut and Jobs Act (“SAB 118”), recorded provisional estimates during a measurement period, when it did not have the necessary information available, prepared, or analyzed in reasonable detail to complete its accounting for the change in tax law. As a result of the Tax Legislation, the Company reassessed the ability to recover its $27.2 million of foreign tax credit ("FTC") carryforwards. Based on currently available information, the Company believed it would not generate sufficient foreign source income in the carryforward period to utilize a portion of these credits. As a result, the Company recorded a valuation allowance of $13.1 million against its foreign tax credit carryforward during the fiscal year ended September 28, 2018 as a provisional estimate. On the basis of proposed Treasury Regulations issued subsequent to the filing of the Company's Annual Report on Form 10-K on November 21, 2018 , the Company recorded an adjustment to the valuation allowance to reduce the valuation allowance to $3.6 million . The adjustment to the valuation allowance resulted in a tax benefit to the provision for income taxes of $9.5 million . The Tax Legislation contains additional international provisions which impact the Company beginning in the period ended December 28, 2018, including the tax on “Global Intangible Low-Taxed Income” (“GILTI”). The impact of the GILTI liability is not expected to have a significant impact on the financial statements for the fiscal year ending September 27, 2019. The Company is electing to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”). The accounting for the impact of the Tax Legislation is complete and the Company closed the measurement period related to SAB 118. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 28, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY: During the three months ended December 28, 2018 and December 29, 2017 , the Company paid dividends of approximately $27.2 million and $25.8 million to its stockholders, respectively. On January 30, 2019, the Company's Board declared a $0.110 dividend per share of common stock, payable on February 28, 2019, to shareholders of record on the close of business on February 14, 2019. During the first quarter of fiscal 2019 , the Company completed a repurchase of 1.6 million shares of its common stock for $50.0 million . 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. 28, 2018 | |
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 28, 2018 December 29, 2017 TBOs $ 5.3 $ 5.0 RSUs 8.9 5.8 PSUs 3.8 5.3 Deferred Stock and Other Units 0.6 0.4 $ 18.6 $ 16.5 Taxes related to share-based compensation $ 4.6 $ 4.6 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 28, 2018 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 1.8 $ 8.36 RSUs 1.1 $ 36.74 PSUs (1) 1.2 $ 36.74 4.1 (1) Includes approximately 0.5 million shares resulting from the payout of the 2016 PSU grants due to exceeding the adjusted earnings per share target. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 28, 2018 | |
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 28, 2018 December 29, 2017 Earnings: Net income attributable to Aramark stockholders $ 250,682 $ 292,284 Shares: Basic weighted-average shares outstanding 246,887 245,086 Effect of dilutive securities 6,769 7,158 Diluted weighted-average shares outstanding 253,656 252,244 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 1.02 $ 1.19 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 0.99 $ 1.16 Share-based awards to purchase 4.6 million and 0.9 million shares were outstanding for the three months ended December 28, 2018 and December 29, 2017 , 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 1.7 million shares and 1.9 million shares were outstanding for the three month periods of December 28, 2018 and December 29, 2017 , 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. 28, 2018 | |
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 $81.6 million at December 28, 2018 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 28, 2018 . 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. 28, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS: The Company reported its operating results in three reportable segments: FSS United States, FSS International and Uniform. Corporate includes general expenses not specifically allocated to an individual segment and share-based compensation expense (see Note 10). In the Company's food and support services segments, approximately 77% of the global revenue is related to food services and 23% is related to facilities services. Financial information by segment follows (in millions): Revenue Three Months Ended December 28, 2018 December 29, 2017 FSS United States $ 2,660.3 $ 2,649.5 FSS International 953.1 913.0 Uniform 651.9 402.6 $ 4,265.3 $ 3,965.1 Operating Income Three Months Ended December 28, 2018 December 29, 2017 FSS United States $ 363.7 $ 180.1 FSS International 11.5 43.9 Uniform 52.7 44.5 427.9 268.5 Corporate (54.5 ) (51.6 ) Operating Income 373.4 216.9 Interest and Other Financing Costs, net 83.0 74.2 Income Before Income Taxes $ 290.4 $ 142.7 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Financial Liabilities | 3 Months Ended |
Dec. 28, 2018 | |
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 28, 2018 and September 28, 2018 was $7,230.7 million and $7,303.1 million , respectively. The carrying value of the Company's debt at December 28, 2018 and September 28, 2018 was $7,377.1 million and $7,244.0 million , respectively. The fair values were computed using market quotes, if available, or based on discounted cash flows using market interest rates as of the end of the respective periods. The inputs utilized in estimating the fair value of the Company's debt have been classified as level 2 in the fair value hierarchy levels. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements of Aramark and Subsidiaries | 3 Months Ended |
Dec. 28, 2018 | |
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 guarantors 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 5.125% Senior Notes due 2024 (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"), 4.75% Senior Notes due June 1, 2026 ("2026 Notes") and 5.000% Senior Notes due February 1, 2028 (the "2028 Notes") are obligations of the Company's wholly-owned subsidiary, Aramark Services, Inc., (other than the 3.125% 2025 Notes, which are obligations of the Company's wholly owned subsidiary, Aramark International Finance S.a.r.l) 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, 2026 Notes or 2028 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 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 46,068 $ 31,036 $ 172,772 $ — $ 249,881 Receivables — 2,077 504,123 1,374,099 — 1,880,299 Inventories — 15,710 236,659 118,742 — 371,111 Prepayments and other current assets — 19,040 61,596 68,061 — 148,697 Total current assets 5 82,895 833,414 1,733,674 — 2,649,988 Property and Equipment, net — 52,569 1,739,928 360,657 — 2,153,154 Goodwill — 173,104 4,699,929 635,570 — 5,508,603 Investment in and Advances to Subsidiaries 3,217,888 7,192,089 — 764,712 (11,174,689 ) — Other Intangible Assets — 29,684 1,884,981 182,228 — 2,096,893 Other Assets — 46,086 986,935 299,285 (2,002 ) 1,330,304 $ 3,217,893 $ 7,576,427 $ 10,145,187 $ 3,976,126 $ (11,176,691 ) $ 13,738,942 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 3,673 $ 27,648 $ 22,120 $ — $ 53,441 Accounts payable — 174,150 387,545 304,467 — 866,162 Accrued expenses and other current liabilities — 232,306 684,373 360,905 88 1,277,672 Total current liabilities — 410,129 1,099,566 687,492 88 2,197,275 Long-term Borrowings — 6,368,256 75,566 879,884 — 7,323,706 Deferred Income Taxes and Other Noncurrent Liabilities — 418,957 500,138 70,926 — 990,021 Intercompany Payable — — 4,946,829 631,565 (5,578,394 ) — Redeemable Noncontrolling Interest — — 10,047 — — 10,047 Total Stockholders' Equity 3,217,893 379,085 3,513,041 1,706,259 (5,598,385 ) 3,217,893 $ 3,217,893 $ 7,576,427 $ 10,145,187 $ 3,976,126 $ (11,176,691 ) $ 13,738,942 CONDENSED CONSOLIDATING BALANCE SHEETS September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 50,716 $ 29,844 $ 134,460 $ — $ 215,025 Receivables — 1,038 443,599 1,345,796 — 1,790,433 Inventories — 15,857 592,259 116,686 — 724,802 Prepayments and other current assets — 21,411 86,100 63,654 — 171,165 Total current assets 5 89,022 1,151,802 1,660,596 — 2,901,425 Property and Equipment, net — 28,341 1,013,523 336,230 — 1,378,094 Goodwill — 173,104 4,783,547 653,917 — 5,610,568 Investment in and Advances to Subsidiaries 3,029,553 7,441,605 90,049 844,245 (11,405,452 ) — Other Intangible Assets — 29,684 1,919,795 187,365 — 2,136,844 Other Assets — 100,754 1,264,976 329,443 (2,002 ) 1,693,171 $ 3,029,558 $ 7,862,510 $ 10,223,692 $ 4,011,796 $ (11,407,454 ) $ 13,720,102 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ — $ 26,564 $ 4,343 $ — $ 30,907 Accounts payable — 128,460 483,606 406,854 — 1,018,920 Accrued expenses and other current liabilities — 205,807 926,794 307,643 88 1,440,332 Total current liabilities — 334,267 1,436,964 718,840 88 2,490,159 Long-term Borrowings — 6,651,110 82,097 479,870 — 7,213,077 Deferred Income Taxes and Other Noncurrent Liabilities — 432,583 466,331 78,301 — 977,215 Intercompany Payable — — 4,827,084 955,407 (5,782,491 ) — Redeemable Noncontrolling Interest — — 10,093 — — 10,093 Total Stockholders' Equity 3,029,558 444,550 3,401,123 1,779,378 (5,625,051 ) 3,029,558 $ 3,029,558 $ 7,862,510 $ 10,223,692 $ 4,011,796 $ (11,407,454 ) $ 13,720,102 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Revenue $ — $ 268,522 $ 2,848,927 $ 1,147,900 $ — $ 4,265,349 Costs and Expenses: Cost of services provided — 246,609 2,464,602 1,083,234 — 3,794,445 Depreciation and amortization — 4,472 120,982 25,267 — 150,721 Selling and general corporate expenses — 55,742 41,552 6,836 — 104,130 Gain on sale of Healthcare Technologies — — (157,309 ) — — (157,309 ) Interest and other financing costs, net — 78,560 971 3,447 — 82,978 Expense allocations — (230,589 ) 225,801 4,788 — — — 154,794 2,696,599 1,123,572 — 3,974,965 Income before Income Taxes — 113,728 152,328 24,328 — 290,384 Provision for Income Taxes — 8,741 25,000 5,967 — 39,708 Equity in Net Income of Subsidiaries 250,682 — — — (250,682 ) — Net income 250,682 104,987 127,328 18,361 (250,682 ) 250,676 Less: Net income (loss) attributable to noncontrolling interest — — (6 ) — — (6 ) Net income attributable to Aramark stockholders 250,682 104,987 127,334 18,361 (250,682 ) 250,682 Other comprehensive income (loss), net of tax (41,773 ) (27,351 ) — (44,951 ) 72,302 (41,773 ) Comprehensive income (loss) attributable to Aramark stockholders $ 208,909 $ 77,636 $ 127,334 $ (26,590 ) $ (178,380 ) $ 208,909 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 258,271 $ 2,643,266 $ 1,063,581 $ — $ 3,965,118 Costs and Expenses: Cost of services provided — 225,216 2,320,190 976,824 — 3,522,230 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 — 71,175 68 2,890 — 74,133 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, 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 CASH FLOWS For the three months ended December 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 172,881 $ (328,363 ) $ (47,432 ) $ (4,500 ) $ (207,414 ) Cash flows from investing activities: Purchases of property and equipment and other assets — (4,454 ) (89,443 ) (20,503 ) — (114,400 ) Disposals of property and equipment — 50 564 340 — 954 Proceeds from divestiture — — 293,711 — — 293,711 Acquisitions of businesses, net of cash acquired — — (5,033 ) (224 ) — (5,257 ) Other investing activities — 862 17,944 337 — 19,143 Net cash provided by (used in) investing activities — (3,542 ) 217,743 (20,050 ) — 194,151 Cash flows from financing activities: Proceeds from long-term borrowings — — — 72,723 — 72,723 Payments of long-term borrowings — (278,339 ) (8,781 ) (26,911 ) — (314,031 ) Net change in funding under the Receivables Facility — — — 390,000 — 390,000 Payments of dividends — (27,161 ) — — — (27,161 ) Proceeds from issuance of common stock — 1,077 — — — 1,077 Repurchase of stock — (50,000 ) — — — (50,000 ) Other financing activities — (23,447 ) (929 ) (113 ) — (24,489 ) Change in intercompany, net — 203,883 121,522 (329,905 ) 4,500 — Net cash provided by (used in) financing activities — (173,987 ) 111,812 105,794 4,500 48,119 Increase (decrease) in cash and cash equivalents — (4,648 ) 1,192 38,312 — 34,856 Cash and cash equivalents, beginning of period 5 50,716 29,844 134,460 — 215,025 Cash and cash equivalents, end of period $ 5 $ 46,068 $ 31,036 $ 172,772 $ — $ 249,881 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 and other assets — (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 Increase (decrease) 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 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 28, 2018 | |
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 21, 2018 . The Condensed Consolidated Balance Sheet as of September 28, 2018 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 the 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 Adopted Standards In October 2018, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which permits the use of the Secured Overnight Financing Rate Overnight Index Swap Rate as a U.S. benchmark interest rate for hedge accounting purposes. The guidance is effective for the Company in the first quarter of fiscal 2020 and early adoption was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the condensed consolidated financial statements, as the Company's existing interest rate hedges use LIBOR as the benchmark interest rate. Use of the Secured Overnight Financing Rate Overnight Index Swap Rate as the benchmark interest rate may be contemplated in future hedging arrangements. In February 2018, the FASB issued an ASU which provides clarification regarding guidance related to the financial instrument standard. The guidance is effective for the Company in the first quarter of fiscal 2019 and early adoption was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the condensed consolidated financial statements. 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 was permitted. The Company adopted this standard in the first quarter of fiscal 2019, which did not have a material 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 was permitted. The Company adopted the guidance during the first quarter of fiscal 2019, which did not result in an impact to net income. However, certain balances, including $2.2 million for the three month period ended December 29, 2017 , were reclassified from "Cost of services provided" to "Interest and Other Financing Costs, net" on the Condensed Consolidated Statements of Income. The Company applied the practical expedient allowing for the use of amounts disclosed in the pension footnote for prior comparative periods as an estimation basis for applying the retrospective presentation requirements. 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 was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the condensed consolidated financial statements. 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 was permitted. The Company adopted the guidance in the first quarter of fiscal 2019, using the prospective method, which did not have a material impact on the condensed consolidated financial statements. In January 2016, the FASB issued an ASU to address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Under this guidance, equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee, are to be measured at fair value with the changes in fair value recognized in net income. The guidance is effective for the Company in the first quarter of fiscal 2019. The Company adopted the guidance in the first quarter of fiscal 2019. Due to the lack of readily available fair values for the Company's equity investments, other than those accounted for under the equity method of accounting, the Company elected to apply the practical expedient to measure these investments at cost minus impairment plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The guidance did not have an impact to the Company's condensed consolidated financial statements. In May 2014, the FASB issued an ASU on revenue from contracts with customers which supersedes most current revenue recognition guidance. The standard outlines a single comprehensive model which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Additionally, the standard requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted this guidance on September 29, 2018. In connection with the new revenue recognition guidance, the Company completed a comprehensive contract review project and an evaluation of the standard's impact on the timing and presentation of various financial aspects of its contractual arrangements. The Company identified and implemented appropriate changes to business processes, controls and systems to support recognition and disclosure under the new standard. The adoption of the guidance did not have a material impact on the timing of revenue recognition or net income, but it did have an impact on the financial statement line item classification of certain items (see Note 7). The Company adopted the new revenue recognition guidance using the modified retrospective transition method. This method allows the new standard to be applied retrospectively through a cumulative catch up adjustment recognized upon adoption. As such, comparative information in the Company’s financial statements has not been restated and continues to be reported under the accounting standards in effect for those periods. The cumulative transition adjustment, net of tax, was an increase to retained earnings upon adoption (approximately $58.4 million ) mainly to capitalize costs to obtain contracts related to employee commissions previously expensed. See Note 1 to the Company’s consolidated financial statements in its fiscal 2018 Form 10-K for further information on its significant accounting policies related to revenue recognition and see Note 7 for further information on the impact of adopting the new revenue recognition standard. Standards Not Yet Adopted (from most to least recent date of issuance) In August 2018, the FASB issued an ASU which adds, modifies and removes several disclosure requirements related to defined benefit pension plans. The guidance is effective for the Company in the first quarter of fiscal 2022 and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In August 2018, the FASB issued an ASU which adds, modifies and removes several disclosure requirements related to fair value measurements. 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 July 2018, the FASB issued two ASUs regarding the lease recognition standard. The guidance provides clarification on issues identified regarding the adoption of the standard, provides an additional transition method to adopt the standard and provides an additional practical expedient to lessors. 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 July 2018, the FASB issued an ASU which clarifies, corrects errors in or makes minor improvements to the Codification. The guidance is effective for the Company either upon issuance or in the first quarter of fiscal 2020, depending on the amendment. There was no impact on the consolidated financial statements related to the amendments that were effective upon issuance of the guidance and the Company is currently evaluating the impact of the remaining amendments of the pronouncement. In February 2018, the FASB issued an ASU which allows for the reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. 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 September 2017, the FASB issued an ASU to provide additional implementation guidance with respect to the revenue recognition standard (see above) and the leases recognition standard (see below). The guidance is effective for the Company in the first quarter of fiscal 2019 with respect to the revenue recognition standard and in the first quarter of fiscal 2020 with respect to the lease recognition standard. Early adoption is permitted. The Company adopted the revenue related portions of this standard in conjunction with the revenue recognition standard during the first quarter of fiscal 2019, as described above. The lease related portions of this standard will be adopted in a future period in conjunction with the lease recognition standard. 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 continues to review 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 Condensed Consolidated Balance Sheets, but does not expect it to have a significant impact in its Condensed Consolidated Statements of Income or Cash Flows. 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 (loss), 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 costs to obtain or fulfill contracts, long-term prepaid rent, investments in 50% or less owned entities, computer software costs, long-term receivables and personalized work apparel, linens and other rental items in service . |
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 Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 28, 2018 December 29, 2017 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 250,676 $ 292,440 Pension plan adjustments 753 — 753 — — — Foreign currency translation adjustments (17,876 ) (131 ) (18,007 ) 6,384 — 6,384 Fair value of cash flow hedges (32,702 ) 8,463 (24,239 ) 7,341 (2,136 ) 5,205 Share of equity investee's comprehensive income (loss) (280 ) — (280 ) 15 — 15 Other comprehensive income (loss) (50,105 ) 8,332 (41,773 ) 13,740 (2,136 ) 11,604 Comprehensive income 208,903 304,044 Less: Net income attributable to noncontrolling interest (6 ) 156 Comprehensive income attributable to Aramark stockholders $ 208,909 $ 303,888 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): December 28, 2018 September 28, 2018 Pension plan adjustments $ (23,875 ) $ (24,628 ) Foreign currency translation adjustments (111,818 ) (93,811 ) Cash flow hedges 11,953 36,192 Share of equity investee's accumulated other comprehensive loss (9,256 ) (8,976 ) $ (132,996 ) $ (91,223 ) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following tables summarize the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands): Current assets $ 237,807 Noncurrent assets 963,078 Total assets $ 1,200,885 Current liabilities $ 137,867 Noncurrent liabilities 67,590 Total liabilities $ 205,457 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table identifies the Company’s allocations of purchase price to the intangible assets acquired by category: Estimated Fair Weighted- Customer relationship assets $ 297.0 15 Trade names 24.0 3 to indefinite Total intangible assets $ 321.0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Assets by Segment | Changes in total goodwill during the three months ended December 28, 2018 is as follows (in thousands): Segment September 28, 2018 Acquisitions and Divestitures Translation December 28, 2018 FSS United States $ 4,028,454 $ (86,981 ) $ — $ 3,941,473 FSS International 626,379 — (16,282 ) 610,097 Uniform 955,735 1,941 (643 ) 957,033 $ 5,610,568 $ (85,040 ) $ (16,925 ) $ 5,508,603 |
Schedule of Other Intangible Assets | Other intangible assets consist of the following (in thousands): December 28, 2018 September 28, 2018 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 2,201,474 $ (1,149,683 ) $ 1,051,791 $ 2,244,215 $ (1,156,811 ) $ 1,087,404 Trade names 1,046,987 (1,885 ) 1,045,102 1,050,825 (1,385 ) 1,049,440 $ 3,248,461 $ (1,151,568 ) $ 2,096,893 $ 3,295,040 $ (1,158,196 ) $ 2,136,844 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term borrowings, net, are summarized in the following table (in thousands): December 28, 2018 September 28, 2018 Senior secured revolving credit facility, due October 2023 $ 47,973 $ 77,000 Senior secured term loan facility, due October 2023 520,568 538,674 Senior secured term loan facility, due March 2024 1,126,220 1,325,923 Senior secured term loan facility, due March 2025 1,657,192 1,656,919 5.125% senior notes, due January 2024 902,769 902,908 5.000% senior notes, due April 2025 591,179 590,884 3.125% senior notes, due April 2025 (1) 368,195 373,240 4.750% senior notes, due June 2026 494,241 494,082 5.000% senior notes, due February 2028 1,136,754 1,136,472 Receivables Facility, due May 2021 390,000 — Capital leases 137,978 143,388 Other 4,078 4,494 7,377,147 7,243,984 Less—current portion (53,441 ) (30,907 ) $ 7,323,706 $ 7,213,077 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 on Other comprehensive income (loss) (in thousands): Three Months Ended December 28, 2018 December 29, 2017 Interest rate swap agreements $ (31,000 ) $ 5,245 |
Schedule of Derivative Instruments, Balance Sheet Presentation | The following table summarizes the location and fair value, using Level 2 inputs (see Note 14 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments in the Condensed Consolidated Balance Sheets (in thousands): Balance Sheet Location December 28, 2018 September 28, 2018 ASSETS Designated as hedging instruments: Interest rate swap agreements Prepayments and other current assets $ — $ 1,459 Interest rate swap agreements Noncurrent Assets $ 24,355 $ 54,708 Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ 31 $ 209 Gasoline and diesel fuel agreements Prepayments and other current assets $ — $ 3,623 $ 24,386 $ 59,999 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Other Noncurrent Liabilities $ 205 $ — Not designated as hedging instruments: Gasoline and diesel fuel agreements Accounts payable $ 5,604 $ — $ 5,809 $ — |
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 our derivatives not designated as hedging instruments in the Condensed Consolidated Statements of Income (in thousands): Three Months Ended Income Statement Location December 28, 2018 December 29, 2017 Designated as hedging instruments: Interest rate swap agreements Interest expense $ (1,702 ) $ 2,096 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 9,144 $ (3,416 ) Foreign currency forward exchange contracts Interest expense 178 (650 ) 9,322 (4,066 ) $ 7,620 $ (1,970 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table compares the reported Condensed Consolidated Statements of Income for the three month period ended December 28, 2018 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): Three Months Ended December 28, 2018 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 Revenue $ 4,265,349 $ (88,507 ) $ 4,176,842 Costs and Expenses: Cost of services provided 3,794,445 (88,707 ) 3,705,738 Depreciation and amortization 150,721 3,006 153,727 Selling and general corporate expenses 104,130 — 104,130 Gain on sale of Healthcare Technologies (157,309 ) — (157,309 ) 3,891,987 (85,701 ) 3,806,286 Operating income 373,362 (2,806 ) 370,556 Interest and Other Financing Costs, net 82,978 — 82,978 Income Before Income Taxes 290,384 (2,806 ) 287,578 (Benefit) Provision for Income Taxes 39,708 (727 ) 38,981 Net income 250,676 (2,079 ) 248,597 Less: Net income (loss) attributable to noncontrolling interest (6 ) — (6 ) Net income attributable to Aramark stockholders $ 250,682 $ (2,079 ) $ 248,603 The following table compares the reported Condensed Consolidated Balance Sheet as of December 28, 2018 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): December 28, 2018 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 ASSETS Current Assets: Cash and cash equivalents $ 249,881 $ — $ 249,881 Receivables, net 1,880,299 — 1,880,299 Inventories 371,111 346,549 717,660 Prepayments and other current assets 148,697 — 148,697 Total current assets 2,649,988 346,549 2,996,537 Property and Equipment, net 2,153,154 (797,262 ) 1,355,892 Goodwill 5,508,603 — 5,508,603 Other Intangible Assets 2,096,893 — 2,096,893 Other Assets 1,330,304 349,763 1,680,067 $ 13,738,942 $ (100,950 ) $ 13,637,992 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ 53,441 $ — $ 53,441 Accounts payable 866,162 — 866,162 Accrued expenses and other current liabilities 1,277,672 (23,526 ) 1,254,146 Total current liabilities 2,197,275 (23,526 ) 2,173,749 Long-Term Borrowings 7,323,706 — 7,323,706 Deferred Income Taxes and Other Noncurrent Liabilities 990,021 (21,108 ) 968,913 Redeemable Noncontrolling Interest 10,047 — 10,047 Stockholders' Equity: Common stock 2,807 — 2,807 Capital surplus 3,154,479 — 3,154,479 Retained earnings 990,439 (56,316 ) 934,123 Accumulated other comprehensive loss (132,996 ) — (132,996 ) Treasury stock (796,836 ) — (796,836 ) Total stockholders' equity 3,217,893 (56,316 ) 3,161,577 $ 13,738,942 $ (100,950 ) $ 13,637,992 |
Disaggregation of Revenue | The following table presents revenue disaggregated by revenue source (in millions): Three Months Ended December 28, 2018 FSS United States: Business & Industry $ 399.9 Education 1,016.3 Healthcare 263.3 Sports, Leisure & Corrections 594.3 Facilities & Other 386.5 Total FSS United States $ 2,660.3 FSS International: Europe 520.1 Rest of World 433.0 Total FSS International $ 953.1 Uniform $ 651.9 Total Revenue $ 4,265.3 |
Contract with Customer, Asset and Liability | Below is a summary of the changes (in millions): Balance, September 28, 2018 Add: Net increase in current period deferred income Less: Recognition of deferred income Balance, December 28, 2018 Deferred income $ 281.5 155.3 (284.4 ) $ 152.4 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 28, 2018 December 29, 2017 TBOs $ 5.3 $ 5.0 RSUs 8.9 5.8 PSUs 3.8 5.3 Deferred Stock and Other Units 0.6 0.4 $ 18.6 $ 16.5 Taxes related to share-based compensation $ 4.6 $ 4.6 |
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 28, 2018 : Shares Granted (in millions) Weighted-Average Grant-Date Fair Value (dollars per share) TBOs 1.8 $ 8.36 RSUs 1.1 $ 36.74 PSUs (1) 1.2 $ 36.74 4.1 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 28, 2018 December 29, 2017 Earnings: Net income attributable to Aramark stockholders $ 250,682 $ 292,284 Shares: Basic weighted-average shares outstanding 246,887 245,086 Effect of dilutive securities 6,769 7,158 Diluted weighted-average shares outstanding 253,656 252,244 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 1.02 $ 1.19 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 0.99 $ 1.16 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Segment | Financial information by segment follows (in millions): Revenue Three Months Ended December 28, 2018 December 29, 2017 FSS United States $ 2,660.3 $ 2,649.5 FSS International 953.1 913.0 Uniform 651.9 402.6 $ 4,265.3 $ 3,965.1 Operating Income Three Months Ended December 28, 2018 December 29, 2017 FSS United States $ 363.7 $ 180.1 FSS International 11.5 43.9 Uniform 52.7 44.5 427.9 268.5 Corporate (54.5 ) (51.6 ) Operating Income 373.4 216.9 Interest and Other Financing Costs, net 83.0 74.2 Income Before Income Taxes $ 290.4 $ 142.7 |
Schedule of Operating Income by Segment | Operating Income Three Months Ended December 28, 2018 December 29, 2017 FSS United States $ 363.7 $ 180.1 FSS International 11.5 43.9 Uniform 52.7 44.5 427.9 268.5 Corporate (54.5 ) (51.6 ) Operating Income 373.4 216.9 Interest and Other Financing Costs, net 83.0 74.2 Income Before Income Taxes $ 290.4 $ 142.7 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements of Aramark and Subsidiaries (Tables) | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Schedule of Condensed Consolidated Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEETS December 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 46,068 $ 31,036 $ 172,772 $ — $ 249,881 Receivables — 2,077 504,123 1,374,099 — 1,880,299 Inventories — 15,710 236,659 118,742 — 371,111 Prepayments and other current assets — 19,040 61,596 68,061 — 148,697 Total current assets 5 82,895 833,414 1,733,674 — 2,649,988 Property and Equipment, net — 52,569 1,739,928 360,657 — 2,153,154 Goodwill — 173,104 4,699,929 635,570 — 5,508,603 Investment in and Advances to Subsidiaries 3,217,888 7,192,089 — 764,712 (11,174,689 ) — Other Intangible Assets — 29,684 1,884,981 182,228 — 2,096,893 Other Assets — 46,086 986,935 299,285 (2,002 ) 1,330,304 $ 3,217,893 $ 7,576,427 $ 10,145,187 $ 3,976,126 $ (11,176,691 ) $ 13,738,942 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 3,673 $ 27,648 $ 22,120 $ — $ 53,441 Accounts payable — 174,150 387,545 304,467 — 866,162 Accrued expenses and other current liabilities — 232,306 684,373 360,905 88 1,277,672 Total current liabilities — 410,129 1,099,566 687,492 88 2,197,275 Long-term Borrowings — 6,368,256 75,566 879,884 — 7,323,706 Deferred Income Taxes and Other Noncurrent Liabilities — 418,957 500,138 70,926 — 990,021 Intercompany Payable — — 4,946,829 631,565 (5,578,394 ) — Redeemable Noncontrolling Interest — — 10,047 — — 10,047 Total Stockholders' Equity 3,217,893 379,085 3,513,041 1,706,259 (5,598,385 ) 3,217,893 $ 3,217,893 $ 7,576,427 $ 10,145,187 $ 3,976,126 $ (11,176,691 ) $ 13,738,942 CONDENSED CONSOLIDATING BALANCE SHEETS September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 50,716 $ 29,844 $ 134,460 $ — $ 215,025 Receivables — 1,038 443,599 1,345,796 — 1,790,433 Inventories — 15,857 592,259 116,686 — 724,802 Prepayments and other current assets — 21,411 86,100 63,654 — 171,165 Total current assets 5 89,022 1,151,802 1,660,596 — 2,901,425 Property and Equipment, net — 28,341 1,013,523 336,230 — 1,378,094 Goodwill — 173,104 4,783,547 653,917 — 5,610,568 Investment in and Advances to Subsidiaries 3,029,553 7,441,605 90,049 844,245 (11,405,452 ) — Other Intangible Assets — 29,684 1,919,795 187,365 — 2,136,844 Other Assets — 100,754 1,264,976 329,443 (2,002 ) 1,693,171 $ 3,029,558 $ 7,862,510 $ 10,223,692 $ 4,011,796 $ (11,407,454 ) $ 13,720,102 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ — $ 26,564 $ 4,343 $ — $ 30,907 Accounts payable — 128,460 483,606 406,854 — 1,018,920 Accrued expenses and other current liabilities — 205,807 926,794 307,643 88 1,440,332 Total current liabilities — 334,267 1,436,964 718,840 88 2,490,159 Long-term Borrowings — 6,651,110 82,097 479,870 — 7,213,077 Deferred Income Taxes and Other Noncurrent Liabilities — 432,583 466,331 78,301 — 977,215 Intercompany Payable — — 4,827,084 955,407 (5,782,491 ) — Redeemable Noncontrolling Interest — — 10,093 — — 10,093 Total Stockholders' Equity 3,029,558 444,550 3,401,123 1,779,378 (5,625,051 ) 3,029,558 $ 3,029,558 $ 7,862,510 $ 10,223,692 $ 4,011,796 $ (11,407,454 ) $ 13,720,102 | |
Schedule of Condensed Consolidated Income Statement | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Revenue $ — $ 268,522 $ 2,848,927 $ 1,147,900 $ — $ 4,265,349 Costs and Expenses: Cost of services provided — 246,609 2,464,602 1,083,234 — 3,794,445 Depreciation and amortization — 4,472 120,982 25,267 — 150,721 Selling and general corporate expenses — 55,742 41,552 6,836 — 104,130 Gain on sale of Healthcare Technologies — — (157,309 ) — — (157,309 ) Interest and other financing costs, net — 78,560 971 3,447 — 82,978 Expense allocations — (230,589 ) 225,801 4,788 — — — 154,794 2,696,599 1,123,572 — 3,974,965 Income before Income Taxes — 113,728 152,328 24,328 — 290,384 Provision for Income Taxes — 8,741 25,000 5,967 — 39,708 Equity in Net Income of Subsidiaries 250,682 — — — (250,682 ) — Net income 250,682 104,987 127,328 18,361 (250,682 ) 250,676 Less: Net income (loss) attributable to noncontrolling interest — — (6 ) — — (6 ) Net income attributable to Aramark stockholders 250,682 104,987 127,334 18,361 (250,682 ) 250,682 Other comprehensive income (loss), net of tax (41,773 ) (27,351 ) — (44,951 ) 72,302 (41,773 ) Comprehensive income (loss) attributable to Aramark stockholders $ 208,909 $ 77,636 $ 127,334 $ (26,590 ) $ (178,380 ) $ 208,909 | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 258,271 $ 2,643,266 $ 1,063,581 $ — $ 3,965,118 Costs and Expenses: Cost of services provided — 225,216 2,320,190 976,824 — 3,522,230 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 — 71,175 68 2,890 — 74,133 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, 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 |
Schedule of Condensed Consolidated Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ 172,881 $ (328,363 ) $ (47,432 ) $ (4,500 ) $ (207,414 ) Cash flows from investing activities: Purchases of property and equipment and other assets — (4,454 ) (89,443 ) (20,503 ) — (114,400 ) Disposals of property and equipment — 50 564 340 — 954 Proceeds from divestiture — — 293,711 — — 293,711 Acquisitions of businesses, net of cash acquired — — (5,033 ) (224 ) — (5,257 ) Other investing activities — 862 17,944 337 — 19,143 Net cash provided by (used in) investing activities — (3,542 ) 217,743 (20,050 ) — 194,151 Cash flows from financing activities: Proceeds from long-term borrowings — — — 72,723 — 72,723 Payments of long-term borrowings — (278,339 ) (8,781 ) (26,911 ) — (314,031 ) Net change in funding under the Receivables Facility — — — 390,000 — 390,000 Payments of dividends — (27,161 ) — — — (27,161 ) Proceeds from issuance of common stock — 1,077 — — — 1,077 Repurchase of stock — (50,000 ) — — — (50,000 ) Other financing activities — (23,447 ) (929 ) (113 ) — (24,489 ) Change in intercompany, net — 203,883 121,522 (329,905 ) 4,500 — Net cash provided by (used in) financing activities — (173,987 ) 111,812 105,794 4,500 48,119 Increase (decrease) in cash and cash equivalents — (4,648 ) 1,192 38,312 — 34,856 Cash and cash equivalents, beginning of period 5 50,716 29,844 134,460 — 215,025 Cash and cash equivalents, end of period $ 5 $ 46,068 $ 31,036 $ 172,772 $ — $ 249,881 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 and other assets — (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 Increase (decrease) 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 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018USD ($)countrysegment | Dec. 29, 2017USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||
Decrease in Cost of services provided | $ 3,794,445 | $ 3,522,230 |
Increase in Interest and Other Financing Costs, net | $ 82,978 | $ 74,133 |
Number of reportable segments | segment | 3 | |
Accounting Standards Update 2017-07 [Member] | ||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||
Decrease in Cost of services provided | $ (2,200) | |
Increase in Interest and Other Financing Costs, net | 2,200 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||
Decrease in Cost of services provided | (88,707) | |
Increase in Interest and Other Financing Costs, net | 0 | |
Retained earnings | $ 58,400 | |
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 Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Pre-Tax Amount | ||
Pension plan adjustments | $ (753) | $ 0 |
Foreign currency translation adjustments | (17,876) | 6,384 |
Fair value of cash flow hedges | (32,702) | 7,341 |
Share of equity investee's comprehensive income (loss) | (280) | 15 |
Other comprehensive income (loss) | (50,105) | 13,740 |
Tax Effect | ||
Pension plan adjustments | 0 | 0 |
Foreign currency translation adjustments | (131) | 0 |
Fair value of cash flow hedges | (8,463) | 2,136 |
Share of equity investee's comprehensive income (loss) | 0 | 0 |
Other comprehensive income (loss) | 8,332 | (2,136) |
After-Tax Amount | ||
Net income | 250,676 | 292,440 |
Pension plan adjustments | 753 | 0 |
Foreign currency translation adjustments | (18,007) | 6,384 |
Fair value of cash flow hedges | (24,239) | 5,205 |
Share of equity investee's comprehensive income (loss) | (280) | 15 |
Other comprehensive income (loss), net of tax | (41,773) | 11,604 |
Comprehensive income | 208,903 | 304,044 |
Less: Net income (loss) attributable to noncontrolling interest | (6) | 156 |
Comprehensive income attributable to Aramark stockholders | $ 208,909 | $ 303,888 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Pension plan adjustments | $ (23,875) | $ (24,628) |
Foreign currency translation adjustments | (111,818) | (93,811) |
Cash flow hedges | 11,953 | 36,192 |
Share of equity investee's accumulated other comprehensive loss | (9,256) | (8,976) |
Total accumulated other comprehensive loss | $ (132,996) | $ (91,223) |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Thousands | Nov. 09, 2018 | Jan. 19, 2018 | Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 |
Business Acquisition [Line Items] | |||||
Proceeds from divestiture | $ 293,711 | $ 0 | |||
Gain on sale of Healthcare Technologies | 157,309 | 0 | |||
Gain on sale | 140,165 | $ 0 | |||
Goodwill | 5,508,603 | $ 5,610,568 | |||
AmeriPride | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, gross | $ 995,400 | ||||
Escrow payment for potential final adjustments | 84,900 | ||||
Goodwill | $ 365,200 | ||||
Sales for Ameripride | $ 165,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Healthcare Technologies (HCT) | |||||
Business Acquisition [Line Items] | |||||
Proceeds from divestiture | $ 293,700 | ||||
Gain on sale of Healthcare Technologies | 157,300 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Healthcare Technologies (HCT) | Cost of services provided | |||||
Business Acquisition [Line Items] | |||||
Gain on sale | $ 140,200 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Assets Acquired and Liabilities Assumed) (Details) - AmeriPride $ in Thousands | Jan. 19, 2018USD ($) |
Business Acquisition [Line Items] | |
Current assets | $ 237,807 |
Noncurrent assets | 963,078 |
Total assets | 1,200,885 |
Current liabilities | 137,867 |
Noncurrent liabilities | 67,590 |
Total liabilities | $ 205,457 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures (Intangible Assets Acquired) (Details) - AmeriPride $ in Millions | Jan. 19, 2018USD ($) |
Business Acquisition [Line Items] | |
Estimated fair value | $ 321 |
Customer relationship assets | |
Business Acquisition [Line Items] | |
Weighted- Average Estimated Useful Life (in years) | 15 years |
Estimated fair value | $ 297 |
Trade name | |
Business Acquisition [Line Items] | |
Weighted- Average Estimated Useful Life (in years) | 3 years |
Trade name | Trade name | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 24 |
Severance (Details)
Severance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Sep. 28, 2018 | |
Efficiencies and effectiveness of it's selling, general and administrative functions | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | $ 22 | |
Employee severance and other costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related costs accrual | $ 31 | $ 16.6 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill Assets by Segment (Details) $ in Thousands | 3 Months Ended |
Dec. 28, 2018USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | $ 5,610,568 |
Acquisitions and Divestitures | (85,040) |
Translation | (16,925) |
Balance at the end of the period | 5,508,603 |
FSS United States | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 4,028,454 |
Acquisitions and Divestitures | (86,981) |
Translation | 0 |
Balance at the end of the period | 3,941,473 |
FSS International | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 626,379 |
Acquisitions and Divestitures | 0 |
Translation | (16,282) |
Balance at the end of the period | 610,097 |
Uniform | |
Goodwill [Roll Forward] | |
Balance at beginning of the period | 955,735 |
Acquisitions and Divestitures | 1,941 |
Translation | (643) |
Balance at the end of the period | $ 957,033 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Other Intangible Assets | ||
Gross Amount | $ 3,248,461 | $ 3,295,040 |
Accumulated Amortization | (1,151,568) | (1,158,196) |
Net Amount | 2,096,893 | 2,136,844 |
Customer relationship assets | ||
Other Intangible Assets | ||
Gross Amount | 2,201,474 | 2,244,215 |
Accumulated Amortization | (1,149,683) | (1,156,811) |
Net Amount | 1,051,791 | 1,087,404 |
Trade name | ||
Other Intangible Assets | ||
Gross Amount | 1,046,987 | 1,050,825 |
Accumulated Amortization | (1,885) | (1,385) |
Net Amount | $ 1,045,102 | $ 1,049,440 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 30.4 | $ 23.3 |
Borrowings (Schedule of Debt) (
Borrowings (Schedule of Debt) (Details) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Debt Instrument [Line Items] | ||
Capital leases | $ 137,978 | $ 143,388 |
Other | 4,078 | 4,494 |
Debt and capital lease obligations | 7,377,147 | 7,243,984 |
Less—current portion | (53,441) | (30,907) |
Long-Term Borrowings | 7,323,706 | 7,213,077 |
Receivables Facility, due May 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 390,000 | 0 |
Secured Debt | Senior secured revolving credit facility, due March 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 47,973 | 77,000 |
Secured Debt | Senior secured term loan facility, due October 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 520,568 | 538,674 |
Secured Debt | Senior secured term loan facility, due March 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,126,220 | 1,325,923 |
Secured Debt | Senior secured term loan facility, due March 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,657,192 | 1,656,919 |
Senior Notes | 5.125% senior notes, due January 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 902,769 | 902,908 |
Interest rate stated percentage | 5.125% | |
Senior Notes | 5.000% senior notes, due April 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 591,179 | 590,884 |
Interest rate stated percentage | 5.00% | |
Senior Notes | 3.125% senior notes, due April 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 368,195 | 373,240 |
Interest rate stated percentage | 3.125% | |
Senior Notes | 4.750% senior notes, due June 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 494,241 | 494,082 |
Interest rate stated percentage | 4.75% | |
Senior Notes | 5.000% senior notes, due February 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,136,754 | $ 1,136,472 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Sep. 28, 2018 | |
U.S. dollar denominated term loan due 2024 | ||
Debt Instrument [Line Items] | ||
Repayments of Debt | $ 200,000 | |
Senior Notes | 5.000% senior notes, due February 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1,136,754 | $ 1,136,472 |
Senior Notes | 3.125% senior notes, due April 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 368,195 | 373,240 |
Interest rate stated percentage | 3.125% | |
Senior Notes | 5.125% senior notes, due January 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 902,769 | 902,908 |
Interest rate stated percentage | 5.125% | |
Senior Notes | 4.750% senior notes, due June 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 494,241 | 494,082 |
Interest rate stated percentage | 4.75% | |
Revolving Credit Facility | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 47,973 | $ 77,000 |
Foreign | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 938,300 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Thousands, € in Millions, £ in Millions, gal in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 28, 2018USD ($) | Dec. 29, 2017USD ($) | Sep. 28, 2018USD ($) | Dec. 28, 2018EUR (€)gal | Dec. 28, 2018USD ($)gal | Dec. 28, 2018GBP (£)gal | |
Derivative [Line Items] | ||||||
Gain (loss) recognized in income | $ (7,620) | $ 1,970 | ||||
Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Net tax loss expected to be reclassified from accumulated other comprehensive loss | 7,100 | |||||
Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Gain (loss) recognized in income | (9,322) | 4,066 | ||||
Interest rate swap agreements | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | $ 2,600,000 | |||||
Interest rate swap agreements | Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | $ 500,000 | |||||
Cash flow hedge gain (loss) | 12,000 | $ 36,200 | ||||
Gain (loss) recognized in income | (31,000) | 5,245 | ||||
Gasoline and diesel fuel agreements | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Non monetary notional amount of derivative (in gallons) | gal | 12.9 | 12.9 | 12.9 | |||
Gain (loss) recognized in income | $ (9,200) | $ (1,900) | ||||
Foreign currency forward exchange contracts | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | € 16 | £ 10.7 |
Derivative Instruments - Effect
Derivative Instruments - Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Derivative [Line Items] | ||
Foreign currency translation adjustments | $ (7,620) | $ 1,970 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap agreements | ||
Derivative [Line Items] | ||
Foreign currency translation adjustments | $ (31,000) | $ 5,245 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet Presentation (Details) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Derivative instruments | ||
Fair value of derivative assets | $ 24,386 | $ 59,999 |
Interest rate swap agreements | 5,809 | 0 |
Designated as Hedging Instrument | Prepayments and other current assets | Interest rate swap agreements | ||
Derivative instruments | ||
Fair value of derivative assets | 0 | 1,459 |
Designated as Hedging Instrument | Noncurrent Assets | Interest rate swap agreements | ||
Derivative instruments | ||
Fair value of derivative assets | 24,355 | 54,708 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest rate swap agreements | ||
Derivative instruments | ||
Interest rate swap agreements | 205 | 0 |
Not Designated as Hedging Instrument | Prepayments and other current assets | Foreign currency forward exchange contracts | ||
Derivative instruments | ||
Fair value of derivative assets | 31 | 209 |
Not Designated as Hedging Instrument | Prepayments and other current assets | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
Fair value of derivative assets | 0 | 3,623 |
Not Designated as Hedging Instrument | Accounts payable | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
Interest rate swap agreements | $ 5,604 | $ 0 |
Derivative Instruments - Locati
Derivative Instruments - Location of (Gain) Loss Reclassified from AOCI Into Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Derivative instruments | ||
(Gain) loss recognized in income | $ 7,620 | $ (1,970) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | 31,000 | (5,245) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Expense | Interest rate swap agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | (1,702) | 2,096 |
Not Designated as Hedging Instrument | ||
Derivative instruments | ||
(Gain) loss recognized in income | 9,322 | (4,066) |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | 9,200 | 1,900 |
Not Designated as Hedging Instrument | Interest Expense | Foreign currency forward exchange contracts | ||
Derivative instruments | ||
(Gain) loss recognized in income | 178 | (650) |
Not Designated as Hedging Instrument | Cost of Services Provided and Selling and General Corporate Expense [Member] | Gasoline and diesel fuel agreements | ||
Derivative instruments | ||
(Gain) loss recognized in income | $ 9,144 | $ (3,416) |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation Narrative (Details) | Dec. 28, 2018performance_obligation |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Number of remaining performance obligations | 1 |
Revenue Recognition - Other Obl
Revenue Recognition - Other Obligations Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Sep. 29, 2018 | Sep. 28, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 4,265,349 | $ 3,965,118 | ||
Property and Equipment, net | 2,153,154 | $ 1,378,094 | ||
Inventories | 371,111 | $ 724,802 | ||
Uniform | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 651,900 | $ 402,600 | ||
Cost of services provided | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cost of services provided in the period | 3,600 | |||
Cost of services provided | Uniform | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cost of services provided in the period | 79,100 | |||
Depreciation and Amortization [Member] | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cost of services provided in the period | 5,100 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | (88,507) | |||
Property and Equipment, net | (797,262) | |||
Inventories | 346,549 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Uniform | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 95,300 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Other Assets | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Capitalized contract acquisition cost | 100,700 | $ 97,200 | ||
Property and Equipment, net | 797,300 | |||
Long-term prepaid rent | 181,000 | |||
Costs to Fulfill | 116,300 | |||
Inventories | $ 346,500 |
Revenue Recognition - Effect on
Revenue Recognition - Effect on Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 29, 2017 | Sep. 29, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | $ 249,881 | $ 215,025 | $ 185,663 | $ 238,797 |
Receivables (less allowances: 2019 - $51,399; 2018 - $52,682) | 1,880,299 | 1,790,433 | ||
Inventories | 371,111 | 724,802 | ||
Prepayments and other current assets | 148,697 | 171,165 | ||
Total current assets | 2,649,988 | 2,901,425 | ||
Property and Equipment, net | 2,153,154 | 1,378,094 | ||
Goodwill | 5,508,603 | 5,610,568 | ||
Other Intangible Assets | 2,096,893 | 2,136,844 | ||
Other Assets | 1,330,304 | 1,693,171 | ||
Assets | 13,738,942 | 13,720,102 | ||
Current maturities of long-term borrowings | 53,441 | 30,907 | ||
Accounts payable | 866,162 | 1,018,920 | ||
Accrued expenses and other current liabilities | 1,277,672 | 1,440,332 | ||
Total current liabilities | 2,197,275 | 2,490,159 | ||
Long-Term Borrowings | 7,323,706 | 7,213,077 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 990,021 | 977,215 | ||
Redeemable Noncontrolling Interest | 10,047 | 10,093 | ||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—280,666,074 shares and 2018—279,314,297 shares; and outstanding: 2019—245,883,193 shares and 2018—246,744,438 shares) | 2,807 | 2,793 | ||
Capital surplus | 3,154,479 | 3,132,421 | ||
Retained earnings | 990,439 | 710,519 | ||
Accumulated other comprehensive loss | (132,996) | (91,223) | ||
Treasury stock (shares held in treasury: 2019—34,782,881 shares and 2018—32,569,859 shares) | (796,836) | (724,952) | ||
Total stockholders' equity | 3,217,893 | 3,029,558 | ||
Liabilities and Equity | 13,738,942 | $ 13,720,102 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 0 | |||
Receivables (less allowances: 2019 - $51,399; 2018 - $52,682) | 0 | |||
Inventories | 346,549 | |||
Prepayments and other current assets | 0 | |||
Total current assets | 346,549 | |||
Property and Equipment, net | (797,262) | |||
Goodwill | 0 | |||
Other Intangible Assets | 0 | |||
Other Assets | 349,763 | |||
Assets | (100,950) | |||
Current maturities of long-term borrowings | 0 | |||
Accounts payable | 0 | |||
Accrued expenses and other current liabilities | (23,526) | |||
Total current liabilities | (23,526) | |||
Long-Term Borrowings | 0 | |||
Deferred Income Taxes and Other Noncurrent Liabilities | (21,108) | |||
Redeemable Noncontrolling Interest | 0 | |||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—280,666,074 shares and 2018—279,314,297 shares; and outstanding: 2019—245,883,193 shares and 2018—246,744,438 shares) | 0 | |||
Capital surplus | 0 | |||
Retained earnings | (56,316) | |||
Accumulated other comprehensive loss | 0 | |||
Treasury stock (shares held in treasury: 2019—34,782,881 shares and 2018—32,569,859 shares) | 0 | |||
Total stockholders' equity | (56,316) | |||
Liabilities and Equity | (100,950) | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 249,881 | |||
Receivables (less allowances: 2019 - $51,399; 2018 - $52,682) | 1,880,299 | |||
Inventories | 717,660 | |||
Prepayments and other current assets | 148,697 | |||
Total current assets | 2,996,537 | |||
Property and Equipment, net | 1,355,892 | |||
Goodwill | 5,508,603 | |||
Other Intangible Assets | 2,096,893 | |||
Other Assets | 1,680,067 | |||
Assets | 13,637,992 | |||
Current maturities of long-term borrowings | 53,441 | |||
Accounts payable | 866,162 | |||
Accrued expenses and other current liabilities | 1,254,146 | |||
Total current liabilities | 2,173,749 | |||
Long-Term Borrowings | 7,323,706 | |||
Deferred Income Taxes and Other Noncurrent Liabilities | 968,913 | |||
Redeemable Noncontrolling Interest | 10,047 | |||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—280,666,074 shares and 2018—279,314,297 shares; and outstanding: 2019—245,883,193 shares and 2018—246,744,438 shares) | 2,807 | |||
Capital surplus | 3,154,479 | |||
Retained earnings | 934,123 | |||
Accumulated other comprehensive loss | (132,996) | |||
Treasury stock (shares held in treasury: 2019—34,782,881 shares and 2018—32,569,859 shares) | (796,836) | |||
Total stockholders' equity | 3,161,577 | |||
Liabilities and Equity | $ 13,637,992 |
Revenue Recognition - Effect _2
Revenue Recognition - Effect on Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | $ 4,265,349 | $ 3,965,118 |
Costs and Expenses: | ||
Cost of services provided | 3,794,445 | 3,522,230 |
Depreciation and amortization | 150,721 | 133,849 |
Selling and general corporate expenses | 104,130 | 92,168 |
Costs and Expenses | 3,891,987 | 3,748,247 |
Operating income | 373,362 | 216,871 |
Gain on sale of Healthcare Technologies | 157,309 | 0 |
Interest and Other Financing Costs, net | 82,978 | 74,133 |
Income Before Income Taxes | 290,384 | 142,738 |
Provision for Income Taxes | 39,708 | (149,702) |
Net income | 250,676 | 292,440 |
Less: Net income (loss) attributable to noncontrolling interest | (6) | 156 |
Net income attributable to Aramark stockholders | 250,682 | $ 292,284 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | (88,507) | |
Costs and Expenses: | ||
Cost of services provided | (88,707) | |
Depreciation and amortization | 3,006 | |
Selling and general corporate expenses | 0 | |
Costs and Expenses | (85,701) | |
Operating income | (2,806) | |
Gain on sale of Healthcare Technologies | 0 | |
Interest and Other Financing Costs, net | 0 | |
Income Before Income Taxes | (2,806) | |
Provision for Income Taxes | (727) | |
Net income | (2,079) | |
Less: Net income (loss) attributable to noncontrolling interest | 0 | |
Net income attributable to Aramark stockholders | (2,079) | |
Calculated under Revenue Guidance in Effect before Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue | 4,176,842 | |
Costs and Expenses: | ||
Cost of services provided | 3,705,738 | |
Depreciation and amortization | 153,727 | |
Selling and general corporate expenses | 104,130 | |
Costs and Expenses | 3,806,286 | |
Operating income | 370,556 | |
Gain on sale of Healthcare Technologies | (157,309) | |
Interest and Other Financing Costs, net | 82,978 | |
Income Before Income Taxes | 287,578 | |
Provision for Income Taxes | 38,981 | |
Net income | 248,597 | |
Less: Net income (loss) attributable to noncontrolling interest | (6) | |
Net income attributable to Aramark stockholders | $ 248,603 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,265,349 | $ 3,965,118 |
FSS United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,660,300 | 2,649,500 |
FSS United States | Total FSS United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,660,300 | |
FSS United States | Business & Industry | Total FSS United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 399,900 | |
FSS United States | Education | Total FSS United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,016,300 | |
FSS United States | Healthcare | Total FSS United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 263,300 | |
FSS United States | Sports, Leisure & Corrections | Total FSS United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 594,300 | |
FSS United States | Facilities & Other | Total FSS United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 386,500 | |
FSS International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 953,100 | 913,000 |
FSS International | Total FSS International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 953,100 | |
FSS International | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 520,100 | |
FSS International | Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 433,000 | |
Uniform | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 651,900 | $ 402,600 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Income (Details) $ in Millions | 3 Months Ended |
Dec. 28, 2018USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Deferred income beginning balance | $ 281.5 |
Deferred income ending balance | 152.4 |
Accounting Standards Update 2014-09 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Add: Net increase in current period deferred income | 155.3 |
Less: Recognition of deferred income | $ (284.4) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 28, 2018 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provisional estimate of tax expense related to one time transition tax | $ 27.2 | |
FTC, Valuation Allowance | $ 13.1 | |
Change In Tax Rate, Valuation Allowance | $ 3.6 | |
Change In Tax Rate, Valuation Allowance, Expense (Benefit) | $ 9.5 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | Jan. 30, 2019 | |
Class of Stock [Line Items] | |||
Payments of dividends | $ 27,161 | $ 25,779 | |
Repurchase of common stock, (shares) | 1.6 | ||
Repurchase of common stock, value | $ 50,000 | ||
Common Stock | Subsequent Event | |||
Class of Stock [Line Items] | |||
Dividends payable, amount per share (in dollars per share) | $ 0.11 |
Share-Based Compensation - Comp
Share-Based Compensation - Compensation Expense and Other Options (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 18.6 | $ 16.5 |
Taxes related to share-based compensation | 4.6 | 4.6 |
TBOs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 5.3 | 5 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 8.9 | 5.8 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | 3.8 | 5.3 |
Deferred Stock and Other Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated share-based compensation expense | $ 0.6 | $ 0.4 |
Share-Based Compensation - Opti
Share-Based Compensation - Options Granted and Weighted Average Grant Date Fair Value (Details) shares in Millions | 3 Months Ended |
Dec. 28, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Instruments other than options, Units granted (in shares) | 4.1 |
TBOs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options, Units granted (in shares) | 1.8 |
Options, Weighted-Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 8.36 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Instruments other than options, Units granted (in shares) | 1.1 |
Instruments other than options, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 36.74 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Instruments other than options, Units granted (in shares) | 1.2 |
Instruments other than options, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 36.74 |
2016 PSU Grants paid | 0.5 |
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. 28, 2018 | Dec. 29, 2017 | |
Earnings: | ||
Net income attributable to Aramark stockholders | $ 250,682 | $ 292,284 |
Shares: | ||
Basic weighted-average shares outstanding (in shares) | 246,887 | 245,086 |
Effect of dilutive securities (in shares) | 6,769 | 7,158 |
Diluted weighted-average shares outstanding (in shares) | 253,656 | 252,244 |
Basic Earnings Per Share: | ||
Net income attributable to Aramark stockholders (in dollars per share) | $ 1.02 | $ 1.19 |
Diluted Earnings Per Share: | ||
Net income attributable to Aramark stockholders (in dollars per share) | $ 0.99 | $ 1.16 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Share-based Compensation Award | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of EPS (in shares) | 4.6 | 0.9 |
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) | 1.7 | 1.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Dec. 28, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Maximum potential liability from vehicle leases | $ 81,600,000 |
Residual value guarantee, value assumptions, terminal fair value of vehicles coming off lease | 0 |
Residual value guarantee accrual | $ 0 |
Minimum | |
Loss Contingencies [Line Items] | |
Operating lease terms | 1 year |
Maximum | |
Loss Contingencies [Line Items] | |
Operating lease terms | 8 years |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018USD ($)segment | Dec. 29, 2017USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 4,265,349 | $ 3,965,118 |
Operating Income | 373,362 | 216,871 |
Gain on sale of Healthcare Technologies | 140,165 | 0 |
Interest and Other Financing Costs, net | (82,978) | (74,133) |
Income Before Income Taxes | 290,384 | 142,738 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 427,900 | 268,500 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Operating Income | (54,500) | (51,600) |
Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 373,400 | 216,900 |
Interest and Other Financing Costs, net | 83,000 | 74,200 |
FSS United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,660,300 | 2,649,500 |
FSS United States | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 363,700 | 180,100 |
FSS International | ||
Segment Reporting Information [Line Items] | ||
Revenue | 953,100 | 913,000 |
FSS International | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | 11,500 | 43,900 |
Uniform | ||
Segment Reporting Information [Line Items] | ||
Revenue | 651,900 | 402,600 |
Uniform | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating Income | $ 52,700 | $ 44,500 |
Sales | Product Concentration Risk | Food Services | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 77.00% | |
Sales | Product Concentration Risk | Facilities & Other | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 23.00% |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 28, 2018 | Sep. 28, 2018 |
Fair Value Disclosure | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 7,230.7 | $ 7,303.1 |
Carrying Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 7,377.1 | $ 7,244 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 | Dec. 29, 2017 | Sep. 29, 2017 |
Current Assets: | ||||
Cash and cash equivalents | $ 249,881 | $ 215,025 | $ 185,663 | $ 238,797 |
Receivables | 1,880,299 | 1,790,433 | ||
Inventories | 371,111 | 724,802 | ||
Prepayments and other current assets | 148,697 | 171,165 | ||
Total current assets | 2,649,988 | 2,901,425 | ||
Property and Equipment, net | 2,153,154 | 1,378,094 | ||
Goodwill | 5,508,603 | 5,610,568 | ||
Investment in and Advances to Subsidiaries | 0 | 0 | ||
Other Intangible Assets | 2,096,893 | 2,136,844 | ||
Other Assets | 1,330,304 | 1,693,171 | ||
Assets | 13,738,942 | 13,720,102 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 53,441 | 30,907 | ||
Accounts payable | 866,162 | 1,018,920 | ||
Accrued expenses and other current liabilities | 1,277,672 | 1,440,332 | ||
Total current liabilities | 2,197,275 | 2,490,159 | ||
Long-Term Borrowings | 7,323,706 | 7,213,077 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 990,021 | 977,215 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 10,047 | 10,093 | ||
Total stockholders' equity | 3,217,893 | 3,029,558 | ||
Liabilities and Equity | 13,738,942 | 13,720,102 | ||
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 | (11,174,689) | (11,405,452) | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | (2,002) | (2,002) | ||
Assets | (11,176,691) | (11,407,454) | ||
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 | (5,578,394) | (5,782,491) | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | (5,598,385) | (5,625,051) | ||
Liabilities and Equity | (11,176,691) | (11,407,454) | ||
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 | 3,217,888 | 3,029,553 | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Assets | 3,217,893 | 3,029,558 | ||
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 | 3,217,893 | 3,029,558 | ||
Liabilities and Equity | 3,217,893 | 3,029,558 | ||
Issuers | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 46,068 | 50,716 | 35,676 | 111,512 |
Receivables | 2,077 | 1,038 | ||
Inventories | 15,710 | 15,857 | ||
Prepayments and other current assets | 19,040 | 21,411 | ||
Total current assets | 82,895 | 89,022 | ||
Property and Equipment, net | 52,569 | 28,341 | ||
Goodwill | 173,104 | 173,104 | ||
Investment in and Advances to Subsidiaries | 7,192,089 | 7,441,605 | ||
Other Intangible Assets | 29,684 | 29,684 | ||
Other Assets | 46,086 | 100,754 | ||
Assets | 7,576,427 | 7,862,510 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 3,673 | 0 | ||
Accounts payable | 174,150 | 128,460 | ||
Accrued expenses and other current liabilities | 232,306 | 205,807 | ||
Total current liabilities | 410,129 | 334,267 | ||
Long-Term Borrowings | 6,368,256 | 6,651,110 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 418,957 | 432,583 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 379,085 | 444,550 | ||
Liabilities and Equity | 7,576,427 | 7,862,510 | ||
Guarantors | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 31,036 | 29,844 | 35,464 | 37,513 |
Receivables | 504,123 | 443,599 | ||
Inventories | 236,659 | 592,259 | ||
Prepayments and other current assets | 61,596 | 86,100 | ||
Total current assets | 833,414 | 1,151,802 | ||
Property and Equipment, net | 1,739,928 | 1,013,523 | ||
Goodwill | 4,699,929 | 4,783,547 | ||
Investment in and Advances to Subsidiaries | 0 | 90,049 | ||
Other Intangible Assets | 1,884,981 | 1,919,795 | ||
Other Assets | 986,935 | 1,264,976 | ||
Assets | 10,145,187 | 10,223,692 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 27,648 | 26,564 | ||
Accounts payable | 387,545 | 483,606 | ||
Accrued expenses and other current liabilities | 684,373 | 926,794 | ||
Total current liabilities | 1,099,566 | 1,436,964 | ||
Long-Term Borrowings | 75,566 | 82,097 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 500,138 | 466,331 | ||
Intercompany Payable | 4,946,829 | 4,827,084 | ||
Redeemable Noncontrolling Interest | 10,047 | 10,093 | ||
Total stockholders' equity | 3,513,041 | 3,401,123 | ||
Liabilities and Equity | 10,145,187 | 10,223,692 | ||
Non Guarantors | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 172,772 | 134,460 | $ 114,518 | $ 89,767 |
Receivables | 1,374,099 | 1,345,796 | ||
Inventories | 118,742 | 116,686 | ||
Prepayments and other current assets | 68,061 | 63,654 | ||
Total current assets | 1,733,674 | 1,660,596 | ||
Property and Equipment, net | 360,657 | 336,230 | ||
Goodwill | 635,570 | 653,917 | ||
Investment in and Advances to Subsidiaries | 764,712 | 844,245 | ||
Other Intangible Assets | 182,228 | 187,365 | ||
Other Assets | 299,285 | 329,443 | ||
Assets | 3,976,126 | 4,011,796 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 22,120 | 4,343 | ||
Accounts payable | 304,467 | 406,854 | ||
Accrued expenses and other current liabilities | 360,905 | 307,643 | ||
Total current liabilities | 687,492 | 718,840 | ||
Long-Term Borrowings | 879,884 | 479,870 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 70,926 | 78,301 | ||
Intercompany Payable | 631,565 | 955,407 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 1,706,259 | 1,779,378 | ||
Liabilities and Equity | $ 3,976,126 | $ 4,011,796 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Statements of Income And Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | $ 4,265,349 | $ 3,965,118 |
Cost of services provided | 3,794,445 | 3,522,230 |
Costs and Expenses: | ||
Depreciation and amortization | 150,721 | 133,849 |
Selling and general corporate expenses | 104,130 | 92,168 |
Gain on sale of Healthcare Technologies | 157,309 | 0 |
Interest and other financing costs, net | 82,978 | 74,133 |
Expense allocations | 0 | 0 |
Total Costs and Expenses | 3,974,965 | 3,822,380 |
Income before Income Taxes | 290,384 | 142,738 |
Provision for Income Taxes | 39,708 | (149,702) |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 250,676 | 292,440 |
Less: Net income (loss) attributable to noncontrolling interest | (6) | 156 |
Net income attributable to Aramark stockholders | 250,682 | 292,284 |
Other comprehensive income, net of tax | (41,773) | 11,604 |
Comprehensive income attributable to Aramark stockholders | 208,909 | 303,888 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Cost of services provided | 0 | 0 |
Costs and Expenses: | ||
Depreciation and amortization | 0 | 0 |
Selling and general corporate expenses | 0 | 0 |
Gain on sale of Healthcare Technologies | 0 | |
Interest and other financing costs, net | 0 | 0 |
Expense allocations | 0 | 0 |
Total Costs and Expenses | 0 | 0 |
Income before Income Taxes | 0 | 0 |
Provision for Income Taxes | 0 | 0 |
Equity in Net Income of Subsidiaries | (250,682) | (292,284) |
Net income | (250,682) | (292,284) |
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | (250,682) | (292,284) |
Other comprehensive income, net of tax | 72,302 | (24,391) |
Comprehensive income attributable to Aramark stockholders | (178,380) | (316,675) |
Aramark (Parent) | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 0 | 0 |
Cost of services provided | 0 | 0 |
Costs and Expenses: | ||
Depreciation and amortization | 0 | 0 |
Selling and general corporate expenses | 0 | 0 |
Gain on sale of Healthcare Technologies | 0 | |
Interest and other financing costs, net | 0 | 0 |
Expense allocations | 0 | 0 |
Total Costs and Expenses | 0 | 0 |
Income before Income Taxes | 0 | 0 |
Provision for Income Taxes | 0 | 0 |
Equity in Net Income of Subsidiaries | 250,682 | 292,284 |
Net income | 250,682 | 292,284 |
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 250,682 | 292,284 |
Other comprehensive income, net of tax | (41,773) | 11,604 |
Comprehensive income attributable to Aramark stockholders | 208,909 | 303,888 |
Issuers | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 268,522 | 258,271 |
Cost of services provided | 246,609 | 225,216 |
Costs and Expenses: | ||
Depreciation and amortization | 4,472 | 4,491 |
Selling and general corporate expenses | 55,742 | 53,666 |
Gain on sale of Healthcare Technologies | 0 | |
Interest and other financing costs, net | 78,560 | 71,175 |
Expense allocations | (230,589) | (65,203) |
Total Costs and Expenses | 154,794 | 289,345 |
Income before Income Taxes | 113,728 | (31,074) |
Provision for Income Taxes | 8,741 | (20,709) |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 104,987 | (10,365) |
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 104,987 | (10,365) |
Other comprehensive income, net of tax | (27,351) | 5,389 |
Comprehensive income attributable to Aramark stockholders | 77,636 | (4,976) |
Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 2,848,927 | 2,643,266 |
Cost of services provided | 2,464,602 | 2,320,190 |
Costs and Expenses: | ||
Depreciation and amortization | 120,982 | 105,895 |
Selling and general corporate expenses | 41,552 | 33,698 |
Gain on sale of Healthcare Technologies | 157,309 | |
Interest and other financing costs, net | 971 | 68 |
Expense allocations | 225,801 | 61,110 |
Total Costs and Expenses | 2,696,599 | 2,520,961 |
Income before Income Taxes | 152,328 | 122,305 |
Provision for Income Taxes | 25,000 | (142,447) |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 127,328 | 264,752 |
Less: Net income (loss) attributable to noncontrolling interest | (6) | 156 |
Net income attributable to Aramark stockholders | 127,334 | 264,596 |
Other comprehensive income, net of tax | 0 | 0 |
Comprehensive income attributable to Aramark stockholders | 127,334 | 264,596 |
Non Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenue | 1,147,900 | 1,063,581 |
Cost of services provided | 1,083,234 | 976,824 |
Costs and Expenses: | ||
Depreciation and amortization | 25,267 | 23,463 |
Selling and general corporate expenses | 6,836 | 4,804 |
Gain on sale of Healthcare Technologies | 0 | |
Interest and other financing costs, net | 3,447 | 2,890 |
Expense allocations | 4,788 | 4,093 |
Total Costs and Expenses | 1,123,572 | 1,012,074 |
Income before Income Taxes | 24,328 | 51,507 |
Provision for Income Taxes | 5,967 | 13,454 |
Equity in Net Income of Subsidiaries | 0 | 0 |
Net income | 18,361 | 38,053 |
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 |
Net income attributable to Aramark stockholders | 18,361 | 38,053 |
Other comprehensive income, net of tax | (44,951) | 19,002 |
Comprehensive income attributable to Aramark stockholders | $ (26,590) | $ 57,055 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | $ (207,414) | $ (311,449) |
Cash flows from investing activities: | ||
Purchases of property and equipment and other assets | (114,400) | (118,907) |
Disposals of property and equipment | 954 | 1,160 |
Proceeds from divestiture | 293,711 | 0 |
Acquisitions of businesses, net of cash acquired | (5,257) | (1,321,688) |
Other investing activities | 19,143 | (3,351) |
Net cash provided by (used in) investing activities | 194,151 | (1,442,786) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 72,723 | 2,279,287 |
Payments of long-term borrowings | (314,031) | (647,622) |
Net change in funding under the Receivables Facility | 390,000 | 136,050 |
Payments of dividends | (27,161) | (25,779) |
Proceeds from issuance of common stock | 1,077 | 4,929 |
Repurchase of stock | (50,000) | (24,410) |
Other financing activities | (24,489) | (21,354) |
Change in intercompany, net | 0 | 0 |
Net cash provided by financing activities | 48,119 | 1,701,101 |
Increase (decrease) in cash and cash equivalents | 34,856 | (53,134) |
Cash and cash equivalents, beginning of period | 215,025 | 238,797 |
Cash and cash equivalents, end of period | 249,881 | 185,663 |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (4,500) | (35,003) |
Cash flows from investing activities: | ||
Purchases of property and equipment and other assets | 0 | 0 |
Disposals of property and equipment | 0 | 0 |
Proceeds from divestiture | 0 | |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | 0 | 0 |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of stock | 0 | 0 |
Other financing activities | 0 | 0 |
Change in intercompany, net | 4,500 | 35,003 |
Net cash provided by financing activities | 4,500 | 35,003 |
Increase (decrease) 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 and other assets | 0 | 0 |
Disposals of property and equipment | 0 | 0 |
Proceeds from divestiture | 0 | |
Acquisitions of businesses, net of cash acquired | 0 | 0 |
Other investing activities | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | 0 | 0 |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of stock | 0 | 0 |
Other financing activities | 0 | 0 |
Change in intercompany, net | 0 | 0 |
Net cash provided by financing activities | 0 | 0 |
Increase (decrease) 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 | 172,881 | (63,662) |
Cash flows from investing activities: | ||
Purchases of property and equipment and other assets | (4,454) | (2,166) |
Disposals of property and equipment | 50 | 112 |
Proceeds from divestiture | 0 | |
Acquisitions of businesses, net of cash acquired | 0 | (1,386,378) |
Other investing activities | 862 | 342 |
Net cash provided by (used in) investing activities | (3,542) | (1,388,090) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 2,270,600 |
Payments of long-term borrowings | (278,339) | (633,997) |
Net change in funding under the Receivables Facility | 0 | 0 |
Payments of dividends | (27,161) | (25,779) |
Proceeds from issuance of common stock | 1,077 | 4,929 |
Repurchase of stock | (50,000) | (24,410) |
Other financing activities | (23,447) | (20,859) |
Change in intercompany, net | 203,883 | (194,568) |
Net cash provided by financing activities | (173,987) | 1,375,916 |
Increase (decrease) in cash and cash equivalents | (4,648) | (75,836) |
Cash and cash equivalents, beginning of period | 50,716 | 111,512 |
Cash and cash equivalents, end of period | 46,068 | 35,676 |
Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (328,363) | (191,802) |
Cash flows from investing activities: | ||
Purchases of property and equipment and other assets | (89,443) | (101,674) |
Disposals of property and equipment | 564 | 515 |
Proceeds from divestiture | 293,711 | |
Acquisitions of businesses, net of cash acquired | (5,033) | (22,565) |
Other investing activities | 17,944 | (61) |
Net cash provided by (used in) investing activities | 217,743 | (123,785) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 0 |
Payments of long-term borrowings | (8,781) | (4,672) |
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 | 0 |
Other financing activities | (929) | (495) |
Change in intercompany, net | 121,522 | 318,705 |
Net cash provided by financing activities | 111,812 | 313,538 |
Increase (decrease) in cash and cash equivalents | 1,192 | (2,049) |
Cash and cash equivalents, beginning of period | 29,844 | 37,513 |
Cash and cash equivalents, end of period | 31,036 | 35,464 |
Non Guarantors | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash used in operating activities | (47,432) | (20,982) |
Cash flows from investing activities: | ||
Purchases of property and equipment and other assets | (20,503) | (15,067) |
Disposals of property and equipment | 340 | 533 |
Proceeds from divestiture | 0 | |
Acquisitions of businesses, net of cash acquired | (224) | 87,255 |
Other investing activities | 337 | (3,632) |
Net cash provided by (used in) investing activities | (20,050) | 69,089 |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 72,723 | 8,687 |
Payments of long-term borrowings | (26,911) | (8,953) |
Net change in funding under the Receivables Facility | 390,000 | 136,050 |
Payments of dividends | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 |
Repurchase of stock | 0 | 0 |
Other financing activities | (113) | 0 |
Change in intercompany, net | (329,905) | (159,140) |
Net cash provided by financing activities | 105,794 | (23,356) |
Increase (decrease) in cash and cash equivalents | 38,312 | 24,751 |
Cash and cash equivalents, beginning of period | 134,460 | 89,767 |
Cash and cash equivalents, end of period | $ 172,772 | $ 114,518 |