Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Nov. 22, 2019 | Mar. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Period End Date | Sep. 27, 2019 | ||
Entity File Number | 001-36223 | ||
Entity Registrant Name | Aramark | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-8236097 | ||
Entity Address, Address Line One | 2400 Market Street | ||
Entity Address, City or Town | Philadelphia, | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19103 | ||
City Area Code | 215 | ||
Local Phone Number | 238-3000 | ||
Title of 12(b) Security | Common Stock, | ||
Trading Symbol | ARMK | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,400.3 | ||
Entity Common Stock, Shares Outstanding | 249,431,095 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --09-27 | ||
Entity Central Index Key | 0001584509 | ||
Document Transition Report | false | ||
Document Annual Report | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 246,643 | $ 215,025 |
Receivables (less allowances: 2019 - $49,566; 2018 - $52,682) | 1,806,964 | 1,790,433 |
Inventories | 411,319 | 724,802 |
Prepayments and other current assets | 193,461 | 171,165 |
Total current assets | 2,658,387 | 2,901,425 |
Property and Equipment, at cost: | ||
Land, buildings and improvements | 947,522 | 901,874 |
Service equipment and fixtures | 3,993,014 | 2,296,331 |
Property and Equipment, gross | 4,940,536 | 3,198,205 |
Less - Accumulated depreciation | (2,758,774) | (1,820,111) |
Property and Equipment, net | 2,181,762 | 1,378,094 |
Goodwill | 5,518,800 | 5,610,568 |
Other Intangible Assets | 2,033,566 | 2,136,844 |
Other Assets | 1,343,806 | 1,693,171 |
Assets | 13,736,321 | 13,720,102 |
Current Liabilities: | ||
Current maturities of long-term borrowings | 69,928 | 30,907 |
Accounts payable | 999,517 | 1,018,920 |
Accrued payroll and related expenses | 509,617 | 422,299 |
Accrued expenses and other current liabilities | 1,126,236 | 1,018,033 |
Total current liabilities | 2,705,298 | 2,490,159 |
Long-Term Borrowings | 6,612,239 | 7,213,077 |
Deferred Income Taxes and Other Noncurrent Liabilities | 1,088,822 | 977,215 |
Redeemable Noncontrolling Interest | 9,915 | 10,093 |
Stockholders' Equity: | ||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—282,919,536 shares and 2018—279,314,297; and outstanding: 2019—247,756,091 shares and 2018—246,744,438 shares) | 2,829 | 2,793 |
Capital surplus | 3,236,450 | 3,132,421 |
Retained earnings | 1,107,029 | 710,519 |
Accumulated other comprehensive loss | (216,965) | (91,223) |
Treasury stock (shares held in treasury: 2019—35,163,445 shares and 2018—32,569,859 shares) | (809,296) | (724,952) |
Total stockholders' equity | 3,320,047 | 3,029,558 |
Liabilities and Stockholders’ Equity | $ 13,736,321 | $ 13,720,102 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts | $ 49,566 | $ 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) | 282,919,536 | 279,314,297 |
Common stock, shares outstanding (in shares) | 247,756,091 | 246,744,438 |
Treasury Stock, Shares (in shares) | 35,163,445 | 32,569,859 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Statement [Abstract] | |||||||||||
Revenue | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 3,913,598 | $ 3,971,606 | $ 3,939,311 | $ 3,965,118 | $ 16,227,341 | $ 15,789,633 | $ 14,604,412 |
Costs and Expenses: | |||||||||||
Cost of services provided | 14,532,662 | 13,997,911 | 12,995,403 | ||||||||
Depreciation and amortization | 592,573 | 596,182 | 508,212 | ||||||||
Selling and general corporate expenses | 367,256 | 377,129 | 299,170 | ||||||||
Gain on sale of Healthcare Technologies | (156,309) | 0 | 0 | ||||||||
Cost of services provided | 3,503,280 | 3,594,978 | 3,639,959 | 3,794,445 | 3,386,380 | 3,526,293 | 3,563,009 | 3,522,230 | 15,336,182 | 14,971,222 | 13,802,785 |
Operating income | 891,159 | 818,411 | 801,627 | ||||||||
Interest and Other Financing Costs, net | 334,987 | 346,535 | 280,985 | ||||||||
Income Before Income Taxes | 556,172 | 471,876 | 520,642 | ||||||||
Provision (Benefit) for Income Taxes | 107,706 | (96,564) | 146,455 | ||||||||
Net income (loss) | 448,466 | 568,440 | 374,187 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83) | 555 | 264 | ||||||||
Net income attributable to Aramark stockholders | $ 85,557 | $ 82,955 | $ 29,353 | $ 250,682 | $ 175,455 | $ 72,577 | $ 27,569 | $ 292,284 | $ 448,549 | $ 567,885 | $ 373,923 |
Earnings per share attributable to Aramark stockholders: | |||||||||||
Basic (in dollars per share) | $ 1.82 | $ 2.31 | $ 1.53 | ||||||||
Diluted (in dollars per share) | $ 1.78 | $ 2.24 | $ 1.49 | ||||||||
Weighted Average Shares Outstanding: | |||||||||||
Basic (in shares) | 246,854 | 245,771 | 244,453 | ||||||||
Diluted (in shares) | 252,010 | 253,352 | 251,557 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 448,466 | $ 568,440 | $ 374,187 |
Other comprehensive income (loss), net of tax: | |||
Pension plan adjustments | (22,594) | 20,647 | 19,992 |
Foreign currency translation adjustments | (34,308) | (31,253) | 5,903 |
Cash flow hedges: | |||
Unrealized gains (losses) arising during the period | (62,450) | 39,311 | 19,449 |
Reclassification adjustments | (4,798) | 3,675 | 10,130 |
Share of equity investee's comprehensive income (loss) | (1,592) | 157 | 1,549 |
Other comprehensive income (loss), net of tax | (125,742) | 32,537 | 57,023 |
Comprehensive income | 322,724 | 600,977 | 431,210 |
Less: Net income (loss) attributable to noncontrolling interest | (83) | 555 | 264 |
Comprehensive income attributable to Aramark stockholders | $ 322,807 | $ 600,422 | $ 430,946 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 448,466 | $ 568,440 | $ 374,187 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 592,573 | 596,182 | 508,212 |
Deferred income taxes | 40,503 | (104,289) | (37,856) |
Share-based compensation expense | 55,280 | 88,276 | 65,155 |
Net gain on sale of Healthcare Technologies | (139,165) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts Receivable | (78,771) | (45,891) | (111,423) |
Inventories | (49,732) | (40,187) | (21,147) |
Prepayments and Other Current Assets | (37,854) | 42,450 | 95,536 |
Accounts Payable | 17,680 | 26,658 | 93,965 |
Accrued Expenses | 193,532 | (111,386) | 26,804 |
Payments made to clients on contracts (see Note 7) | (40,073) | 0 | 0 |
Changes in other noncurrent liabilities | 18,904 | 1,576 | 31,959 |
Changes in other assets | (41,436) | (2,225) | (9,342) |
Other operating activities | 4,320 | 32,271 | 36,776 |
Net cash provided by operating activities | 984,227 | 1,051,875 | 1,052,826 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | (503,090) | (628,604) | (552,729) |
Disposals of property and equipment | 17,871 | 10,491 | 18,906 |
Proceeds from divestitures | 293,711 | 0 | 0 |
Acquisition of certain businesses, net of cash acquired | |||
Working capital other than cash acquired | 10,634 | 37,985 | 8,114 |
Property and equipment | (3,320) | (283,447) | (2,273) |
Additions to goodwill, other intangible assets and other assets, net | (52,177) | (1,994,822) | (147,963) |
Proceeds from governmental agencies related to property and equipment | 23,025 | 0 | 0 |
Other investing activities | 3,825 | (6,879) | (2,539) |
Net cash used in investing activities | (209,521) | (2,865,276) | (678,484) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 77,630 | 3,177,313 | 3,851,417 |
Payments of long-term borrowings | (654,560) | (973,689) | (3,911,992) |
Net change in funding under the Receivables Facility | 0 | (254,200) | (13,800) |
Payments of dividends | (108,439) | (103,115) | (100,813) |
Proceeds from issuance of common stock | 39,087 | 21,507 | 28,779 |
Repurchase of common stock | (50,000) | (24,410) | (100,000) |
Other financing activities | (38,610) | (49,253) | (42,277) |
Net cash provided by (used in) financing activities | (734,892) | 1,794,153 | (288,686) |
Effect of foreign exchange rates on cash and cash equivalents | (8,196) | (4,524) | 561 |
Increase (decrease) in cash and cash equivalents | 31,618 | (23,772) | 86,217 |
Cash and cash equivalents, beginning of period | 215,025 | 238,797 | 152,580 |
Cash and cash equivalents, end of period | $ 246,643 | $ 215,025 | $ 238,797 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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. 30, 2016 | $ 2,161,006 | $ 2,726 | $ 2,921,725 | $ (33,778) | $ (180,783) | $ (548,884) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to Aramark stockholders(3) | $ 373,923 | 373,923 | 373,923 | ||||
Other comprehensive loss | 57,023 | 57,023 | 57,023 | ||||
Capital contributions from issuance of common stock | 35,724 | 45 | 35,679 | ||||
Share-based compensation expense | 65,155 | 65,155 | |||||
Repurchases of common stock | (132,662) | (132,662) | |||||
Payments of dividends | (102,237) | (102,237) | |||||
Balance Ending 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(3) | 567,885 | 567,885 | 567,885 | ||||
Other comprehensive loss | 32,537 | 32,537 | 32,537 | ||||
Capital contributions from issuance of common stock | 29,621 | 22 | 29,599 | ||||
Share-based compensation expense | 88,276 | 88,276 | |||||
Repurchases of common stock | (43,406) | (43,406) | |||||
Payments of dividends | (104,416) | (104,416) | |||||
Balance Ending 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(3) | 448,549 | 448,549 | 448,549 | ||||
Other comprehensive loss | (125,742) | (125,742) | (125,742) | ||||
Capital contributions from issuance of common stock | 48,785 | 36 | 48,749 | ||||
Share-based compensation expense | 55,280 | 55,280 | |||||
Repurchases of common stock | (84,344) | (84,344) | |||||
Payments of dividends | (110,434) | (110,434) | |||||
Balance Ending at Sep. 27, 2019 | $ 3,320,047 | $ 3,320,047 | $ 2,829 | $ 3,236,450 | $ 1,107,029 | $ (216,965) | $ (809,296) |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies | NATURE OF BUSINESS, 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, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities. • Food and Support Services International ("FSS International") - Food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping, provided to business, educational and healthcare institutions and in sports, leisure and other facilities. • Uniform and Career Apparel ("Uniform") - Provides a full service employee uniform solution, including design, sourcing and manufacturing, delivery, cleaning and maintenance on a contract basis. Directly markets personalized uniforms and accessories, provides managed restroom services and rents uniforms, work clothing, outerwear, particulate-free garments and non-garment items and related services, including mats, shop towels and first aid supplies, to clients in a wide range of industries in the United States, Puerto Rico, Canada and through a joint venture in Japan, including the manufacturing, transportation, construction, restaurant and hotel, healthcare and pharmaceutical industries. The consolidated financial statements include the accounts of the Company and all of its subsidiaries in which a controlling financial interest is maintained in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"). All significant intercompany transactions and accounts have been eliminated. Fiscal Year The Company's fiscal year is the fifty-two or fifty-three week period which ends on the Friday nearest September 30th. The fiscal years ended September 27, 2019 , September 28, 2018 and September 29, 2017 were each fifty-two week periods. 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 Overnight Index Swap Rate based on the Secured Overnight Financing 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. The Company early adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the consolidated financial statements, as the Company's existing interest rate hedges use LIBOR as the benchmark interest rate. The 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 was effective for the Company in the first quarter of fiscal 2019. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the 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 was effective for the Company in the first quarter of fiscal 2019. The Company adopted this standard in the first quarter of fiscal 2019, which did not have a material impact on the 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 was effective for the Company in the first quarter of fiscal 2019. 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 $7.7 million and $6.4 million for the fiscal years ended September 28, 2018 and September 29, 2017 , respectively, were reclassified from "Cost of services provided" to "Interest and Other Financing Costs, net" on the 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 was effective for the Company in the first quarter of fiscal 2019. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the consolidated financial statements. In January 2017, the FASB issued an ASU to clarify the definition of a business. The guidance was effective for the Company in the first quarter of fiscal 2019. 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 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 was 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 on the Company's consolidated financial statements. In May 2014, the FASB issued an ASU on revenue from contracts with customers which superseded 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 (the first day of fiscal 2019). 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 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 May 2019, the FASB issued an ASU which provides the option to irrevocably elect to apply the fair value measurement option on an instrument-by-instrument basis for certain financial instruments within the scope of the credit losses on financial instruments standard. The guidance is effective for the Company in the first quarter of fiscal 2021 when the credit losses on financial instruments standard will be adopted and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In April 2019, the FASB issued an ASU which provides clarification, error corrections and improvements to existing guidance related to the credit losses on financial instruments ASU issued in June 2016, the derivatives and hedging ASU issued in August 2017 and the financial instruments ASU issued in January 2016. The guidance related to the credit losses on financial instruments ASU is effective for the Company in the first quarter of 2021 when the related ASU is adopted, while the guidance related to the derivatives and hedging and the financial instruments ASUs are effective for the Company in the first quarter of fiscal 2020 and the first quarter of 2021, respectively. Early adoption is permitted. The Company will adopt the guidance related to derivatives and hedging in the first quarter of fiscal 2020 and does not expect a material impact on the consolidated financial statements. The Company is currently evaluating the impact of the remaining amendments of the pronouncement. In March 2019, the FASB issued an ASU which provides clarification regarding three issues related to the lease recognition standard. The guidance is effective for the Company in the first quarter of fiscal 2020 when the lease recognition standard will be adopted. See below for further discussion regarding the impact of this standard. 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. See below for further discussion regarding the impact of this standard. In July 2018, the FASB issued an ASU which clarifies, corrects errors in or makes minor improvements to the Accounting Standards 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. The Company will adopt the remaining amendments of the pronouncement in the first quarter of fiscal 2020 and does not expect a material impact on the consolidated financial statements. 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. The Company does not expect this pronouncement to have a material impact on the Company's consolidated financial statements. 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. 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 the first quarter of fiscal 2020 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. Recognition of expense on the Consolidated Statements of Income will continue in a manner similar to current guidance. The Company will adopt this guidance using the modified retrospective approach with an adjustment to recognize lease liabilities offset by a right-of-use asset. This adjustment will be recorded at the beginning of the period of adoption in the first quarter of fiscal 2020; therefore, the Company will recognize and measure leases without revising comparative period information or disclosure. For existing leases as of the effective date, the Company will elect the package of practical expedients available at transition to not reassess historical lease determinations, lease classifications and initial direct costs. Additionally, the Company will not elect the use of hindsight for determining the reasonably certain lease term. The Company will elect the short-term lease recognition exemption whereby lease-related assets and liabilities will not be recognized for arrangements with terms less than one year. The Company has substantially completed its review of lease arrangements in order to determine the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. The Company has also implemented a new lease system in connection with the adoption of this standard. The majority of the Company's lease spend relates to certain real estate, with the remaining lease spend primarily related to vehicles and equipment. Based on its assessment, adoption of the standard is expected to result in the recognition of lease liabilities and associated right of use assets of approximately $410.0 million to $440.0 million and approximately $540.0 million and $570.0 million , respectively. The expected right of use assets include $167.0 million of long-term prepaid rent associated with certain leases at client locations. The Company does not expect adoption of the standard to significantly impact its Consolidated Statements of Income or Cash Flows. Revenue Recognition The Company recognizes revenue when its performance obligation is satisfied 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. In each of the Company's operating segments, revenue is recognized over time in the period in which services are provided pursuant to the terms of the Company's contractual relationships with its clients. The Company generally records revenue on food and support services contracts (both profit and loss contracts and client interest contracts) on a gross basis as the Company is the primary obligor and service provider. See Note 7 for additional information on revenue recognition. Certain profit and loss contracts include payments to the client, typically calculated as a fixed or variable percentage of various categories of revenue and income. In some cases these contracts require minimum guaranteed payments that are contingent on certain future events. These expenses are currently recorded in “Cost of services provided.” Revenue from client interest contracts is generally comprised of amounts billed to clients for food, labor and other costs that the Company incurs, controls and pays for. Revenue from these contracts also includes any associated management fees, client subsidies or incentive fees based upon the Company's performance under the contract. Revenue from direct marketing activities is recognized at a point in time upon shipment. All revenue related taxes are presented on a net basis. The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an accounts receivable balance when revenue is recognized prior to or at the time of invoicing the customer. A majority of the Company’s receivables balances are based on contracts with customers. The Company estimates and reserves for its bad debt exposure based on its experience with past due accounts and collectability, the aging of accounts receivable and its analysis of customer data. Bad debt expense is classified within “Cost of services provided.” Vendor Consideration Consideration received from vendors includes rebates, allowances and volume discounts and are accounted for as an adjustment to the cost of the vendors' products or services and are reported as a reduction of "Cost of services provided," "Inventory," or "Property and equipment, net." Income from rebates, allowances and volume discounts is recognized based on actual purchases in the fiscal period relative to total actual purchases to be made for the contractual rebate period agreed to with the vendor. Rebates, allowances and volume discounts related to “Inventory” held at the balance sheet date are deducted from the carrying value of these inventories. Rebates, allowances and volume discounts related to "Property and equipment, net" are deducted from the costs capitalized. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. 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 (loss) (net of tax). The summary of the components of comprehensive income is as follows (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 448,466 $ 568,440 $ 374,187 Pension plan adjustments (29,137 ) 6,543 (22,594 ) 29,650 (9,003 ) 20,647 22,548 (2,556 ) 19,992 Foreign currency translation adjustments (34,099 ) (209 ) (34,308 ) (31,003 ) (250 ) (31,253 ) 5,903 — 5,903 Cash flow hedges: Unrealized gains (losses) arising during the period (84,392 ) 21,942 (62,450 ) 55,445 (16,134 ) 39,311 31,884 (12,435 ) 19,449 Reclassification adjustments (6,484 ) 1,686 (4,798 ) 5,185 (1,510 ) 3,675 16,606 (6,476 ) 10,130 Share of equity investee's comprehensive income (loss) (1,592 ) — (1,592 ) 157 — 157 2,383 (834 ) 1,549 Other comprehensive income (loss) (155,704 ) 29,962 (125,742 ) 59,434 (26,897 ) 32,537 79,324 (22,301 ) 57,023 Comprehensive income 322,724 600,977 431,210 Less: Net income (loss) attributable to noncontrolling interest (83 ) 555 264 Comprehensive income attributable to Aramark stockholders $ 322,807 $ 600,422 $ 430,946 Accumulated other comprehensive loss consists of the following (in thousands): September 27, 2019 September 28, 2018 Pension plan adjustments $ (47,222 ) $ (24,628 ) Foreign currency translation adjustments (128,119 ) (93,811 ) Cash flow hedges (31,056 ) 36,192 Share of equity investee's accumulated other comprehensive loss (10,568 ) (8,976 ) $ (216,965 ) $ (91,223 ) Currency Translation Gains and losses resulting from the translation of financial statements of non-U.S. subsidiaries are reflected as a component of accumulated other comprehensive income (loss) in stockholders' equity. During both fiscal 2019 and 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. The impact of the remeasurements was a foreign currency transaction loss of approximately $ 4.9 million and $3.8 million during fiscal 2019 and 2018, respectively, to the Consolidated Statements of Income. The impact of foreign currency transaction gains and losses exclusive of Argentina's operations included in the Company's operating results for fiscal 2019 , fiscal 2018 and fiscal 2017 were immaterial to the consolidated financial statements. Current Assets The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. In fiscal 2019, the Company began insuring portions of its general liability, automobile liability and workers’ compensation risks through a wholly owned captive insurance subsidiary (the "Captive"), to enhance its risk financing strategies. The Captive is subject to regulation in its jurisdiction of domicile, including regulations relating to levels of liquidity and solvency as such concepts are defined by the regulator. The Captive was in compliance with these regulations as of year-end. These regulations may have the effect of limiting the Company's ability to access certain cash and cash equivalents held by the Captive for uses other than for the payment of its general liability, automobile liability and workers’ compensation claims and related Captive costs. As of September 27, 2019 , cash and cash equivalents at the Captive was $50.4 million . The Company is self-insured for a limited portion of the risk retained under its general liability, automobile liability and workers’ compensation insurance arrangements. Self-insurance reserves are recorded based on actuarial analyses. Inventories are valued at the lower of cost (principally the first-in, first-out method) and net realizable value. As of September 27, 2019 and September 28, 2018, the Company's reserve for inventory obsolescence was approximately $23.6 million and $21.5 million , respectively. The inventory obsolescence reserve is determined based on history and specific identification. The components of inventories are as follows: September 27, 2019 September 28, 2018 Food 54.3 % 31.6 % Career apparel and linens (1) 40.5 % 65.7 % Parts, supplies and novelties 5.2 % 2.7 % 100.0 % 100.0 % (1) Decrease during fiscal 2019 due to the Company's adoption of Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers (see Note 7). Property and Equipment Property and equipment are stated at cost and are depreciated over their estimated useful lives on a straight-line basis. Gains and losses on dispositions are included in operating results. Maintenance and repairs are charged to current operations and replacements and significant improvements that extend the useful life of the asset are capitalized. The estimated useful lives for the major categories of property and equipment are 10 to 40 years for buildings and improvements and 3 to 10 years for service equipment and fixtures. Depreciation expense during fiscal 2019 , fiscal 2018 and fiscal 2017 was $421.4 million , $270.0 million , and $237.9 million , respectively. The increase from fiscal 2018 to fiscal 2019 is due to the Company's adoption of ASC 606, Revenue from Contracts with Customers (see Note 7). The increase from fiscal 2017 to fiscal 2018 is primarily driven by the acquisition of AmeriPride (see Note 2). During fiscal 2017, the Company received proceeds of approximately $30.1 million related to the sale of a building within the FSS International segment. Subsequently, the Company entered into a capital lease for the building. The proceeds are included in "Other financing activities" in the Consolidated Statements of Cash Flows. The impact on the Consolidated Statements of Income was not material. Other Assets The following table presents details of "Other Assets" as presented in the Consolidated Balance Sheets (in thousands): September 27, 2019 September 28, 2018 Client contract investments (1) $ — $ 1,034,476 Long-term prepaid rent (1) 166,931 — Cost to fulfill - Client (1) 109,401 — Cost to fulfill - Rental merchandise in-service (2) 356,853 — Long-term receivables 27,574 90,068 Miscellaneous investments (3) 264,452 239,547 Computer software costs, net (4) 170,510 152,188 Interest rate swap agreements — 54,708 Employee sales commissions (5) 111,001 — Other (6) 137,084 122,184 $ 1,343,806 $ 1,693,171 (1) Prior to the Company's adoption of ASC 606, Revenue from Contracts with Customers , client contract investments generally represented a cash payment provided by the Company to help finance improvement or renovation at the facility from which the Company operated. These amounts were amortized over the contract period. If the contract was terminated prior to its maturity date, the Company was reimbursed for the unamortized client contract investment amounts. Amortization expense was $183.6 million and $159.6 million during fiscal 2018 and fiscal 2017, respectively. Subsequent to adoption of ASC 606, these balances were reclassified to either leasehold improvements in "Property and Equipment, net" or to long-term prepaid rent or costs to fulfill - client in "Other Assets" and continue to be expensed over the contract life (see Note 7). (2) Due to the Company's adoption of ASC 606, costs to fulfill contracts related to personalized work apparel, linens and other rental items in service, previously capitalized within "Inventories" are now capitalized within "Other Assets." These in-service rental items 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. (3) Miscellaneous investments represent investments in 50% or less owned entities, including the Company's 50% ownership in AIM Services Co., Ltd., a Japanese food and support services company (approximately $180.5 million and $155.1 million at September 27, 2019 and September 28, 2018, respectively). During fiscal 2019, the Company recognized an impairment of $7.0 million in "Cost of services provided" related to an equity investment. (4) Computer software costs represent capitalized costs incurred to purchase or develop software for internal use, and are amortized over the estimated useful life of the software, generally a period of three to ten years. (5) Due to the Company's adoption of ASC 606, costs to obtain contracts related to employee sales commissions are now capitalized within "Other Assets," which were previously expensed to "Cost of services provided" at contract inception (see Note 7). (6) Other consist primarily of noncurrent deferred tax assets, pension assets and deferred financing costs on certain revolving credit facilities. Other Accrued Expenses and Liabilities The following table presents details of "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets (in thousands): September 27, 2019 September 28, 2018 Deferred income (1) $ 345,840 $ 299,089 Accrued client expenses 105,636 98,282 Accrued taxes 61,816 96,855 Accrued insurance and interest 192,695 164,890 Other 420,249 358,917 $ 1,126,236 $ 1,018,033 (1) Includes consideration received in advance from customers prior to the service being performed ($319.0 million) or from vendors prior to the goods being consumed ($26.8 million). Deferred Income Taxes and Other Noncurrent Liabilities The following table presents details of "Deferred Income Taxes and Other Noncurrent Liabilities" as presented in the Consolidated Balance Sheets (in thousands): September 27, 2019 September 28, 2018 Deferred income tax payable $ 519,904 $ 503,429 Deferred compensation 212,090 226,558 Pension-related liabilities 21,367 28,478 Interest rate swap agreements 43,112 — Other noncurrent liabilities 292,349 218,750 $ 1,088,822 $ 977,215 Supplemental Cash Flow Information Fiscal Year Ended (dollars in millions) September 27, 2019 September 28, 2018 September 29, 2017 Interest paid $ 306.2 $ 307.1 $ 201.7 Income taxes paid (refunded) (1) 139.3 (1.1 ) 126.3 (1) During fiscal 2018, the Company was in a net refund position, primarily due to the impact of the Tax Cuts and Jobs Act (see Note 9). Significant noncash activities follow: • During fiscal 2019 , fiscal 2018 and fiscal 2017 , the Company executed capital lease transactions. The present value of the future rental obligations was approximately $41.6 million , $34.0 million and $55.4 million for the respective periods, which is included in property and equipment and long-term borrowings. • During fiscal 2019 , fiscal 2018 and fiscal 2017 , cashless settlements of the exercise price and related employee minimum tax withholding liabilities of share-based payment awards were approximately $34.3 million , $19.0 million and $32.7 million |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Sep. 27, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES: Divestiture On November 9, 2018, the Company completed the sale of its wholly-owned Healthcare Technologies ("HCT") business for $293.7 million in cash. The transaction resulted in a pretax gain of $156.3 million (tax effected gain of $139.2 million ) in the Consolidated Statements of Income for the fiscal year ended September 27, 2019. The Company evaluated the business under the rules for discontinued operations and concluded it did not meet all of the criteria required. 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 are 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 (see Note 5). During the fiscal year ended September 28, 2018 , the Company incurred acquisition-related costs of $12.7 million , included in "Selling and general corporate expenses," and $5.2 million of commitment fees, included in "Interest and Other Financing Costs, net" in the Company’s Consolidated Statements of Income. Consideration The Company has accounted for the AmeriPride acquisition as a business combination under the acquisition method of accounting. The Company 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 Value (in millions) Weighted-Average Estimated Useful Life (in years) 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 were 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. Avendra, LLC ("Avendra") Acquisition On December 11, 2017, the Company completed the acquisition of Avendra, a hospitality procurement services provider in North America, which included the merger of Capital Merger Sub, LLC, a wholly owned subsidiary of the Company, with Avendra, pursuant to the Agreement and Plan of Merger ("Avendra Merger Agreement") dated as of October 13, 2017, by and among Aramark Services, Inc. (“ASI”), a wholly owned subsidiary of the Company, Avendra, Capital Merger Sub, LLC, and Marriott International, Inc., in its capacity as Holder Representative. Avendra continued as the surviving entity of the merger and is a wholly owned subsidiary of the Company whose financial results are included within the FSS United States reporting segment from December 11, 2017. The total consideration paid for Avendra was $1,386.4 million , partially offset by $87.3 million of cash and restricted investments acquired. In order to finance the Avendra acquisition, the Company entered into a long-term financing agreement (see Note 5). During the fiscal year ended September 28, 2018 , the Company incurred acquisition-related costs of $11.5 million , included in "Selling and general corporate expenses," and $6.7 million of commitment fees, included in "Interest and Other Financing Costs, net" in the Company’s Consolidated Statements of Income. Consideration The Company has accounted for the Avendra acquisition as a business combination under the acquisition method of accounting. The Company 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 $ 157,614 Noncurrent assets 1,345,532 Total assets $ 1,503,146 Current liabilities $ 111,087 Noncurrent liabilities 5,681 Total liabilities $ 116,768 Intangible Assets The following table identifies the Company’s allocations of purchase price to the intangible assets acquired by category: Estimated Fair Value (in millions) Weighted-Average Estimated Useful Life (in years) Customer relationship assets $ 567.0 15 Trade name 222.0 indefinite Total intangible assets $ 789.0 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 trade name was determined using the “relief-from-royalty method” which considers the discounted estimated royalty payments that are expected to be avoided as a result of the trademarks being owned. Goodwill The Company recorded $530.5 million of goodwill in connection with its purchase price allocation relating to the Avendra acquisition, all of which was recognized in the FSS United States reporting segment. Factors that contributed to the Company’s recognition of goodwill include the Company’s intent to expand its buying scale through Avendra’s procurement capabilities and to expand its customer base outside of its traditional industries, in addition to the anticipated synergies the Company expects to generate from the acquisition. Combined Revenue and Earnings for AmeriPride and Avendr a Included in the Company’s Consolidated Statements of Income for the fiscal year ended September 28, 2018 were combined revenue from AmeriPride and Avendra of approximately $522.2 million related to these entities. Combined net income for the results of AmeriPride and Avendra was approximately $8 million for the fiscal year ended September 28, 2018 , which excludes the impact of the increased interest expense incurred from the financing of the acquisitions and acquisition related costs included in the Corporate segment. Unaudited Pro Forma Results of Operations Reflecting AmeriPride and Avendra The following table reflects the unaudited pro forma combined results of operations for the fiscal years ended September 28, 2018 and September 29, 2017 for the Company, assuming the closing of both acquisitions occurred on October 1, 2016: Fiscal Year Ended Unaudited (in thousands) September 28, 2018 September 29, 2017 Total revenue $ 16,014,463 $ 15,378,832 Net income 624,334 328,932 The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the actual results of operations had the closing of the acquisitions taken place on October 1, 2016. Furthermore, the pro forma results do not purport to project the future results of operations of the Company. The unaudited pro forma information primarily reflects the following adjustments: • adjustments to amortization expense related to identifiable intangible assets acquired; • adjustments to depreciation expense related to the fair value of property and equipment acquired; • adjustments to interest expense to reflect the long-term financing agreements used to finance the acquisitions (see Note 5); and • adjustments for the tax effect of the aforementioned adjustments. Merger and Integration Costs As a result of the Avendra and AmeriPride acquisitions, the Company incurred merger and integration costs of approximately $36.1 million and $78.1 million during fiscal 2019 and fiscal 2018, respectively. The expenses mainly related to severance costs, facility consolidations, professional services, rebranding expenses and other expenses. Other Acquisitions During fiscal 2019 , the Company paid net cash consideration of approximately $44.9 million for various acquisitions. During fiscal 2018 , the Company paid cash consideration of approximately $30.6 million for various acquisitions, excluding the purchases of AmeriPride and Avendra. During fiscal 2017, the Company paid cash consideration of approximately $142.1 million for various acquisitions. The revenue, net income, assets and liabilities of the acquisitions did not have a material impact on the Company's consolidated financial statements. |
Severance
Severance | 12 Months Ended |
Sep. 27, 2019 | |
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 net severance charges of approximately $18.7 million and $36.6 million during fiscal 2019 and fiscal 2018 , respectively. The Company completed this cost savings phase as of September 27, 2019. During fiscal 2017 , the Company updated its previously initiated actions on streamlining and improving the efficiencies and effectiveness of its selling, general and administrative functions. The Company recorded net severance charges of approximately $18.4 million during fiscal 2017 . The following table summarizes the unpaid obligations for severance and related costs as of September 27, 2019 , which are included in "Accrued payroll and related expenses" in the Consolidated Balance Sheets. These unpaid obligations are expected to be paid through fiscal 2020 . (in millions) September 28, 2018 Net Charges Payments and Other September 27, 2019 Severance and Related Costs Accrual $ 16.6 18.7 (23.4 ) $ 11.9 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Sep. 27, 2019 | |
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. The Company performs its assessment of goodwill at the reporting unit level. Within the FSS International segment, each country or region is evaluated separately since such operating units are relatively autonomous and separate goodwill balances have been recorded for each entity. The Company performs its annual impairment test as of the end of the fiscal month of August. For reporting units in which the Company’s qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, no further impairment testing is performed. For those reporting units where events or changes in circumstances indicate that potential impairment indicators exist, the Company performs a quantitative assessment to test goodwill by comparing the estimated fair value using discounted cash flow calculations of each reporting unit with its estimated net book value. The discounted cash flow calculations are dependent on several subjective factors including the timing of future cash flows, future growth rates and the discount rate. If assumptions or estimates in the fair value calculations change or if future cash flows or future growth rates vary from what was planned, this may impact the impairment analysis. The Company performed an impairment test for goodwill for each of the reporting units using a qualitative testing approach, except for one reporting unit which was tested using the quantitative approach. Based on the evaluations performed, the Company determined that it was more likely than not that the fair value of each of the reporting units exceeded its respective carrying amount, and therefore, the Company determined that goodwill was not impaired. The fair value of the reporting unit in the FSS International segment for which goodwill was tested using the quantitative approach has a goodwill balance of $282.3 million and a fair value that exceeded its carrying value by approximately 22% in fiscal 2019 . Changes in total goodwill during fiscal 2019 is as follows (in thousands): Segment September 28, 2018 Acquisitions and Divestitures Translation and Other September 27, 2019 FSS United States (1) $ 4,028,454 $ (81,823 ) $ 2,587 $ 3,949,218 FSS International 626,379 16,135 (34,046 ) 608,468 Uniform 955,735 3,981 1,398 961,114 $ 5,610,568 $ (61,707 ) $ (30,061 ) $ 5,518,800 (1) Includes the removal of approximately $87.0 million of goodwill related to the divestiture of HCT during the first quarter of fiscal 2019 (see Note 2). Other intangible assets consist of (in thousands): September 27, 2019 September 28, 2018 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 2,183,492 $ (1,193,525 ) $ 989,967 $ 2,244,215 $ (1,156,811 ) $ 1,087,404 Trade names 1,047,959 (4,360 ) 1,043,599 1,050,825 (1,385 ) 1,049,440 $ 3,231,451 $ (1,197,885 ) $ 2,033,566 $ 3,295,040 $ (1,158,196 ) $ 2,136,844 During fiscal 2019 , the Company acquired customer relationship assets and trade names with values of approximately $28.5 million and $4.4 million , respectively. During fiscal 2018 , the Company acquired customer relationship assets and trade names with values of approximately $887.5 million and $246.0 million , respectively. Customer relationship assets are being amortized principally on a straight-line basis over the expected period of benefit, between 9 and 24 years , with a weighted average life of approximately 14 years . The Aramark, Avendra and a majority of the other trade names are indefinite lived intangible assets and are not amortizable but are evaluated for impairment at least annually. The Company completed its annual trade name impairment test for fiscal 2019 , which did not result in an impairment charge. Amortization of other intangible assets for fiscal 2019 , fiscal 2018 and fiscal 2017 was approximately $117.0 million , $112.1 million and $87.9 million , respectively. Based on the recorded balances at September 27, 2019 , total estimated amortization of all acquisition-related intangible assets for fiscal years 2020 through 2024 follows (in thousands): 2020 $ 113,136 2021 105,929 2022 85,709 2023 78,843 2024 78,464 |
Borrowings
Borrowings | 12 Months Ended |
Sep. 27, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS: Long-term borrowings, net, are summarized in the following table (in thousands): September 27, 2019 September 28, 2018 Senior secured revolving credit facility, due October 2023 $ 51,410 $ 77,000 Senior secured term loan facility, due October 2023 507,887 538,674 Senior secured term loan facility, due March 2024 829,344 1,325,923 Senior secured term loan facility, due March 2025 1,658,026 1,656,919 5.125% senior notes, due January 2024 902,351 902,908 5.000% senior notes, due April 2025 592,087 590,884 3.125% senior notes, due April 2025 (1) 352,363 373,240 4.750% senior notes, due June 2026 494,731 494,082 5.000% senior notes, due February 2028 1,137,625 1,136,472 Capital leases 148,754 143,388 Other 7,589 4,494 6,682,167 7,243,984 Less—current portion (69,928 ) (30,907 ) $ 6,612,239 $ 7,213,077 (1) This is a Euro denominated borrowing. See the disclosure below in the Senior Notes section for further information. As of September 27, 2019 , there was approximately $881.9 million of outstanding foreign currency borrowings. Senior Secured Credit Agreement Aramark Services, Inc. ("ASI"), an indirect wholly owned subsidiary of the Company, and certain of its subsidiaries entered into a credit agreement on March 28, 2017 (as supplemented or otherwise modified from time to time, the "Credit Agreement"), which replaced the existing Amended and Restated Credit Agreement, originally dated January 26, 2007, and last amended on March 28, 2014 (the "Previous Credit Agreement"). The Credit Agreement includes senior secured term loan facilities consisting of the following as of September 27, 2019 : • A U.S. dollar denominated term loan to ASI in the amount of $829.3 million , due 2024, ("U.S. Term Loan B due 2024") and $1,658.0 million , due 2025 ("U.S. Term Loan B due 2025"); • A yen denominated term loan to ASI in the amount of ¥10,378.1 million (approximately $96.2 million ), due 2023 (the "Yen Term Loan due 2023"); • A Canadian dollar denominated term loan to Aramark Canada Ltd. in the amount of CAD 365.3 million (approximately $275.7 million ), due 2023 (the "Canadian Term Loan A-2 due 2023"); and • A euro denominated term loan to Aramark Investments Limited, a U.K. borrower, in an amount of €124.4 million (approximately $136.0 million ), due 2023 (the "Euro Term Loan due 2023"). The Credit Agreement also includes a revolving credit facility available for loans in U.S. dollars, Canadian dollars, euros and pounds sterling to ASI and certain foreign borrowers with aggregate commitments under the Credit Agreement of $1.0 billion . The revolving credit facility has a final maturity date of October 1, 2023. As of September 27, 2019 , there was approximately $897.8 million available for borrowing under the revolving credit facility. The Company's revolving credit facility includes a $250.0 million sublimit for letters of credit. The revolving credit facility may be drawn by ASI as well as by certain foreign subsidiaries of ASI. Each foreign borrower is subject to a sublimit of $150.0 million with respect to borrowings under the revolving credit facility. In addition to paying interest on outstanding principal under the senior secured credit facilities, the Company is required to pay a commitment fee to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. On October 1, 2018, ASI entered into Amendment No. 7 ("Amendment No. 7") to the Credit Agreement which changed the commitment fee rate range from 0.25% to 0.40% per annum to 0.15% to 0.30% per annum. The actual rate within the range is based on a Consolidated Leverage Ratio, as defined in the Credit Agreement. The primary borrower under the senior secured credit facilities is ASI. In addition, certain subsidiaries of ASI are borrowers of the term loan facilities and/or the revolving credit facility. The Company is not a guarantor under the senior secured credit facilities and is not subject to the covenants or obligations under the Credit Agreement. The applicable margin on the U.S. Term Loan due 2024 and the U.S. Term Loan B due 2025 is 1.75% with respect to eurocurrency (LIBOR) borrowings, subject to a LIBOR floor of 0.00% , and 0.75% with respect to base-rate borrowings, subject to a minimum base rate of 0.00% . The applicable margin spread for the Yen Term Loan due 2023, the Canadian Term Loan A-2 due 2023, the Euro Term Loan due 2023 and the senior secured revolving credit facility is 1.125% to 1.625% (as of September 27, 2019 - 1.375% ) with respect to eurocurrency (LIBOR) borrowings, bankers’ acceptance ("BA") rate borrowings and letters of credit fees, subject to a floor of 0.00% , and 0.125% to 0.625% (as of September 27, 2019 - 0.375% ) with respect to U.S. and Canadian base rate borrowings, subject to a floor of 0.00% . The actual spreads within all ranges referred to above are based on a Consolidated Leverage Ratio, as defined in the Credit Agreement. Fiscal 2019 Refinancing Transactions On October 1, 2018, 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 and lowered the interest rates applicable to each such tranche of commitments or outstanding indebtedness, as applicable, as described in the preceding paragraph. Fiscal 2018 Refinancing Transactions On December 11, 2017, ASI entered into Incremental Amendment No. 2 to the Credit Agreement. Incremental Amendment No. 2 provided for an incremental senior secured credit facility under the Credit Agreement, the U.S. Term Loan B due 2025, comprised of a U.S. dollar denominated term loan made to ASI in an amount equal to $1,785.0 million , due on March 11, 2025. The net proceeds from the U.S. Term Loan B due 2025 were used to finance the Avendra acquisition and, together with approximately $200.0 million of proceeds from a borrowing made under the Credit Agreement’s revolving credit facility, to repay the $633.8 million of principal outstanding on the U.S. Term Loan A due 2022 under the Credit Agreement, along with accrued interest and certain fees and related expenses. The Company recorded $5.7 million of charges to "Interest and Other Financing Costs, net" in the Consolidated Statements of Income for fiscal 2018 for the write-off of debt issuance costs. During the first quarter of fiscal 2018, the Company capitalized third-party costs of approximately $8.9 million directly attributable to the U.S. Term Loan B due 2025, which are included in "Long-Term Borrowings" in the Consolidated Balance Sheets. The U.S. Term Loan B due 2025 is subject to substantially similar terms relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s existing U.S. Term Loan B due 2024 outstanding under the Credit Agreement. Incremental Facilities The Credit Agreement provides that the Company has the right at any time to request one or more incremental term loan facilities or increases under existing term loan facilities and/or additional revolving credit facilities or increases under the existing revolving credit facility in an amount up to $1,400.0 million of incremental commitments in the aggregate plus an unlimited amount so long as the pro forma Consolidated Secured Debt to Covenant Adjusted EBITDA ratio (each as calculated in accordance with the Credit Agreement (the "Consolidated Secured Debt Ratio")) would not exceed 3.00 to 1.00 , plus any amount of loans and commitments optionally prepaid and terminated under the senior secured credit facilities. The lenders under these facilities are not under any obligation to provide any such incremental facilities or commitments, and any such addition of or increase in facilities or commitments will be subject to customary conditions precedent. Prepayments and Amortization The Credit Agreement requires us to prepay outstanding term loans, subject to certain exceptions, with: • 50% of ASI's annual excess cash flow (as defined in the Credit Agreement) with stepdowns to 25% and 0% upon ASI's reaching certain Consolidated Secured Debt Ratio thresholds; provided, further, that such prepayment shall only be required to the extent excess cash flow for the applicable year exceeds $10.0 million ; • 100% of the net cash proceeds of all nonordinary course asset sales or other dispositions of property subject to certain exceptions and customary reinvestment rights; provided, further, that such prepayment shall only be required to the extent net cash proceeds exceeds $100.0 million ; and • 100% of the net cash proceeds of any incurrence of debt, but excluding proceeds from certain debt permitted under the Credit Agreement. The foregoing mandatory prepayments will be applied to the term loan facilities on a pro rata basis and will reduce the obligations to make scheduled amortization payments on a dollar for dollar basis as directed by the Company. The Company may voluntarily repay outstanding loans under the Credit Agreement any time without premium or penalty, other than (i) customary "breakage" costs with respect to LIBOR loans, (ii) with respect to any voluntary prepayments of the U.S. Term Loan B due 2024 in connection with any repricing transaction (as defined in the Credit Agreement) effected prior to November 24, 2018, a 1% prepayment premium and (iii) with respect to any voluntary prepayments of the U.S. Term Loan B due 2025 in connection with any repricing transaction (as defined in the Credit Agreement) effected prior to December 12, 2018, a 1% prepayment premium. Prepaid term loans may not be reborrowed. The Company made optional prepayments of approximately $500.0 million , $260.4 million and $330.6 million of outstanding U.S. dollar term loans, during fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. If a change of control as defined in the Credit Agreement occurs, this will cause an event of default under the Credit Agreement. Upon an event of default, the new senior secured credit facilities may be accelerated, in which case the Company would be required to repay all outstanding loans plus accrued and unpaid interest and all other amounts outstanding under the new senior secured credit facilities under the Credit Agreement. The Company is required to make quarterly principal payments on the Canadian Term Loan A-2 due 2023 in quarterly amounts of 1.25% , 1.25% , 1.88% , 2.50% and 3.75% per annum of their funded total principal amount during the first, second, third, fourth and fifth years subsequent to entering into Amendment No. 7 to the Credit Agreement, with the remaining balance due at maturity. The Company is required to make quarterly principal repayments on the Yen Term Loan due 2023 and the Euro Term Loan due 2023 in quarterly amounts of 1.25% , 1.25% , 1.75% , 2.50% and 3.75% per annum of their funded total principal amount during the first, second, third, fourth and fifth years subsequent to entering into Amendment No. 7 to the Credit Agreement, with the remaining balance due at maturity. Guarantees All obligations under the Credit Agreement are unconditionally guaranteed by Aramark Intermediate HoldCo Corporation and, subject to certain exceptions, substantially all of ASI's existing and future wholly-owned domestic subsidiaries excluding certain immaterial subsidiaries, receivables facility subsidiaries, certain other customarily excluded subsidiaries and certain subsidiaries designated under the Credit Agreement as "unrestricted subsidiaries," referred to, collectively, as the U.S. Guarantors. All obligations under the Credit Agreement, and the guarantees of those obligations, are secured by (i) a pledge of 100% of the capital stock of ASI, (ii) pledges of 100% of the capital stock (or 65% of voting stock and 100% of non-voting stock, in the case of the stock of foreign subsidiaries) held by ASI, Aramark Intermediate HoldCo Corporation or any of the U.S. Guarantors and (iii) a security interest in, and mortgages on, substantially all tangible assets of Aramark Intermediate HoldCo Corporation, ASI or any of the U.S. Guarantors. Certain Covenants The Credit Agreement contains certain covenants that, among other things, restrict, subject to certain exceptions, ASI's ability and the ability of its restricted subsidiaries to: incur additional indebtedness; issue preferred stock or provide guarantees; create liens on assets; engage in mergers or consolidations; sell assets; pay dividends, make distributions or repurchase its capital stock; make investments, loans or advances; repay or repurchase any subordinated debt, except as scheduled or at maturity; create restrictions on the payment of dividends or other transfers to ASI from its restricted subsidiaries; make certain acquisitions; engage in certain transactions with affiliates; amend material agreements governing ASI's subordinated debt; and fundamentally change ASI's business. In addition, the Credit Agreement requires ASI to comply with a maximum Consolidated Secured Debt Ratio maintenance covenant. The Credit Agreement also contains certain customary affirmative covenants, such as financial and other reporting, and certain events of default. At September 27, 2019 , ASI was in compliance with all of these covenants. The Credit Agreement requires ASI to maintain a maximum Consolidated Secured Debt Ratio, defined as consolidated total indebtedness secured by a lien to Covenant Adjusted EBITDA, of 5.125 x. Consolidated total indebtedness secured by a lien is defined in the Credit Agreement as total indebtedness consisting of debt for borrowed money, capital leases, debt in respect of sale-leaseback transactions, disqualified and preferred stock and advances under the Receivables Facility secured by a lien reduced by the amount of cash and cash equivalents on the consolidated balance sheet that is free and clear of any lien. Non-compliance with the maximum Consolidated Secured Debt Ratio could result in the requirement to immediately repay all amounts outstanding under the Credit Agreement, which, if ASI's lenders under the Credit Agreement (other than the lenders in respect of ASI’s U.S. Term Loan B due 2024 and U.S. Term Loan B due 2025 which lenders shall not benefit from the maximum Consolidated Secured Debt Ratio) failed to waive any such default, would also constitute a default under the indentures governing the senior notes. The actual ratio at September 27, 2019 was 1.78 x. The Credit Agreement establishes an incurrence-based minimum Interest Coverage Ratio, defined as Covenant Adjusted EBITDA to consolidated interest expense, as a condition for ASI and its restricted subsidiaries to incur additional indebtedness and to make certain restricted payments. The minimum Interest Coverage Ratio is 2.00 x for the term of the Credit Agreement. If ASI does not maintain this minimum Interest Coverage Ratio calculated on a pro forma basis for any such additional indebtedness or restricted payments, it could be prohibited from being able to incur additional indebtedness, other than the additional funding provided for under the Credit Agreement and pursuant to specified exceptions, and make certain restricted payments, other than pursuant to certain exceptions. The actual ratio was 5.02 x for the fiscal year ended September 27, 2019 . A failure to pay any obligations under the Credit Agreement as they become due or any event causing amounts to become due prior to their stated maturity could result in a cross-default and potential acceleration of the Company’s other outstanding debt obligations, including the senior notes. Senior Notes 5.000% Senior Notes due 2028 On January 18, 2018, ASI issued $1,150.0 million aggregate principal amount of 5.000% Senior Notes due February 1, 2028 (the "2028 Notes"). The net proceeds from the 2028 Notes were used to finance the AmeriPride acquisition, to pay down certain borrowings under the revolving credit facility and to pay fees related to the transaction. During the second quarter of fiscal 2018, the Company capitalized third-party costs of approximately $14.2 million directly attributable to the 2028 Notes, which are included in "Long-Term Borrowings" in the Consolidated Balance Sheets. The 2028 Notes were issued pursuant to an indenture, dated as of January 18, 2018 (the "2028 Notes Indenture"), entered into by and among ASI, the Company and certain other Aramark entities, as guarantors, and the U.S. Bank National Association, as trustee. The 2028 Notes were issued at par. The 2028 Notes are senior unsecured obligations of ASI. The 2028 Notes rank equal in right of payment to all of the Issuer's existing and future senior indebtedness and will rank senior in right of payment to the Issuer's future subordinated indebtedness. The 2028 Notes are guaranteed on a senior, unsecured basis by the Company and substantially all of the domestic subsidiaries of ASI. The guarantees of the 2028 Notes rank equal in right of payment to all of the senior obligations of such guarantor. The 2028 Notes are effectively subordinated to all of ASI's existing and future secured indebtedness, to the extent of the value of the assets securing that indebtedness, and structurally subordinated to all of the liabilities of any of ASI's subsidiaries that do not guarantee the 2028 Notes. Interest on the 2028 Notes is payable on February 1 and August 1 of each year, commencing on August 1, 2018. At any time prior to February 1, 2023, ASI has the option to redeem all or a part of the 2028 Notes at a purchase price equal to 100% of the principal amount of such 2028 Notes plus an applicable premium and accrued and unpaid interest, if any, to but not including the date of redemption. Prior to February 1, 2021, ASI has the option to redeem up to 40% of the aggregate principal amount of all 2028 Notes at a purchase price equal to 105% of the principal amount of such 2028 Notes plus accrued and unpaid interest, if any, to, but not including, the date of redemption, with the net cash proceeds of one or more equity offerings, provided that at least 50% of the sum of the aggregate principal amount of the 2028 Notes originally issued remain outstanding immediately after the purchase. The 2028 Notes Indenture contains covenants limiting ASI's ability and the ability of its restricted subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends and make certain distributions, investments and other restricted payments; create certain liens; sell assets; enter into transactions with affiliates; limit the ability of restricted subsidiaries to make payments to ASI; enter into sale and leaseback transactions; merge, consolidate, sell or otherwise dispose of all or substantially all of ASI's and its restricted subsidiaries assets; and designate ASI's subsidiaries as unrestricted subsidiaries. The 2028 Notes Indenture also provides for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the applicable series of 2028 Notes to become or to be declared due and payable. Further, a failure to pay any obligations under the 2028 Notes Indenture as they become due or any event causing amounts to become due prior to their stated maturity could result in a cross-default and potential acceleration of the Company’s other outstanding debt obligations. 5.000% Senior Notes due 2025 and 3.125% Senior Notes due 2025 On March 22, 2017, ASI issued $600.0 million of 5.000% Senior Notes due April 1, 2025 (the " 5.000% 2025 Notes"). The 5.000% 2025 Notes were issued pursuant to an indenture (the " 5.000% 2025 Notes Indenture"), entered into by and among ASI, the Company and certain other Aramark entities, as guarantors, and The Bank of New York Mellon, as trustee. The 5.000% 2025 Notes were issued at par. On March 27, 2017, Aramark International Finance S.à r.l. ("AIFS"), an indirect wholly owned subsidiary of the Company, issued €325.0 million of 3.125% Senior Notes due April 1, 2025 (the " 3.125% 2025 Notes" and, together with the 5.000% 2025 Notes, the "2025 Notes"). The 3.125% 2025 Notes were issued pursuant to an indenture (the " 3.125% 2025 Notes Indenture"), entered into by and among AIFS, the Company and certain other Aramark entities, as guarantors, The Bank of New York Mellon, as trustee and registrar, and The Bank of New York Mellon, London Branch, as paying agent and transfer agent. The 3.125% 2025 Notes were issued at par. The 2025 Notes are senior unsecured obligations of the respective Issuers. Each series of the 2025 Notes ranks equal in right of payment to all of the respective Issuer's existing and future senior indebtedness, including the senior secured credit facilities under the Credit Agreement, and, in the case of the 5.000% 2025 Notes with respect to ASI, ASI's 5.125% Senior Notes due 2024 (the "2024 Notes") and 4.750% Senior Notes due 2026 (the "2026 Notes") and will rank senior in right of payment to the respective Issuer's future subordinated indebtedness. The 2025 Notes are guaranteed on a senior, unsecured basis by the Company and substantially all of the domestic subsidiaries of ASI and the 3.125% 2025 Notes are guaranteed on a senior, unsecured basis by ASI. The guarantees of the 2025 Notes rank equal in right of payment to all of the senior obligations of such guarantor, including guarantees of the senior secured credit facilities, the 2024 Notes, the 2026 Notes and the 2028 Notes, as applicable, and in the case of the 3.125% 2025 Notes with respect to ASI, ASI’s obligations under the senior secured credit facilities, the 2024 Notes, the 2026 Notes, the 5.000% 2025 Notes and the 2028 Notes. Each series of the 2025 Notes and the related guarantees thereof are effectively subordinated to all of the respective Issuers' existing and future secured indebtedness, including obligations and/or guarantees of the senior secured credit facilities under the Credit Agreement, to the extent of the value of the assets securing that indebtedness, and structurally subordinated to all of the liabilities of any of ASI's subsidiaries that do not guarantee the 2025 Notes. Interest on the 2025 Notes is payable on April 1 and October 1 of each year, commencing on October 1, 2017. In the event of certain types of changes of control, the holders of the 2025 Notes may require the applicable Issuer to purchase for cash all or a portion of their 2025 Notes at a purchase price equal to 101% of the principal amount of such 2025 Notes, plus accrued and unpaid interest, if any, to, but not including, the purchase date. Beginning April 1, 2020, ASI has the option to redeem all or a portion of the 5.000% 2025 Notes at any time at the redemption prices set forth in the 5.000% 2025 Notes Indenture, plus accrued and unpaid interest. Beginning April 1, 2020, AIFS has the option to redeem all or a portion of the 3.125% 2025 Notes at any time at the redemption prices set forth in the 3.125% 2025 Notes Indenture, plus accrued and unpaid interest. The 5.000% 2025 Notes Indenture and the 3.125% 2025 Notes Indenture contain covenants limiting ASI's ability and the ability of its restricted subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends and make certain distributions, investments and other restricted payments; create certain liens; sell assets; enter into transactions with affiliates; limit the ability of restricted subsidiaries to make payments to ASI; enter into sale and leaseback transactions; merge, consolidate, sell or otherwise dispose of all or substantially all of ASI's and its restricted subsidiaries assets; and designate ASI's subsidiaries as unrestricted subsidiaries. The 5.000% 2025 Notes Indenture and the 3.125% 2025 Notes Indenture also provide for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the applicable series of 2025 Notes to become or to be declared due and payable. Further, a failure to pay any obligations under the 5.000% 2025 Notes Indenture or the 3.125% 2025 Notes Indenture as they become due or any event causing amounts to become due prior to their stated maturity could result in a cross-default and potential acceleration of the Company’s other outstanding debt obligations, including the other senior notes and obligations under the Credit Agreement. 5.125% Senior Notes due 2024 and 4.75% Senior Notes due 2026 On December 17, 2015, ASI issued $400.0 million of 5.125% Senior Notes due January 15, 2024 (the "Original 2024 Notes"), pursuant to an indenture, dated as of December 17, 2015 (the "2024 Base Indenture"), entered into by ASI, the Company and certain other Aramark entities, as guarantors of the Original 2024 Notes, and The Bank of New York Mellon, as trustee. The Original 2024 Notes were issued at par and the net proceeds were used for general corporate purposes and to reduce the outstanding balance under the Company's revolving credit facility. The Company paid approximately $6.0 million in financing fees related to the offering of the Original 2024 Notes. On May 31, 2016, ASI issued $1,000.0 million aggregate principal amount of senior unsecured notes, consisting of $500 million of additional 5.125% Senior Notes due January 15, 2024 (the "New 2024 Notes") and $500 million of 4.75% Senior Notes due June 1, 2026 (the "2026 Notes"). The New 2024 Notes constitute a further issuance of the Original 2024 Notes (together with the New 2024 Notes, the "2024 Notes"). The New 2024 Notes were issued pursuant to the Base Indenture, as supplemented by the supplemental indenture, dated as of May 31, 2016 (the "2024 Supplemental Indenture" and together with the 2024 Base Indenture, the "2024 Notes Indenture"), entered into by ASI, the Company and certain other Aramark entities, as guarantors of the New 2024 Notes, and The Bank of New York Mellon, as trustee. The 2026 Notes were issued pursuant to the indenture, dated as of May 31, 2016 (the "2026 Notes Indenture"), entered into by ASI, the Company and certain other Aramark entities, as guarantors of the 2026 Notes and The Bank of New York Mellon, as trustee. The New 2024 Notes were issued at a premium of $18.8 million , which created an effective yield of 4.6% . The premium was recorded to "Long-Term Borrowings" in the Consolidated Balance Sheets and is amortized to "Interest and Other Financing Costs, net" in the Consolidated Statements of Income until maturity in 2024. The 2024 Notes and 2026 Notes are senior unsecured obligations of ASI. The 2024 Notes and 2026 Notes rank equal in right of payment to all of the ASI's existing and future senior debt and senior in the right of payment to the ASI's future debt and other obligations that are expressly subordinated in right of payment to the 2024 Notes and 2026 Notes. The 2024 Notes and 2026 Notes are guaranteed on a senior, unsecured basis by the Company and substantially all of the domestic subsidiaries of ASI. The 2024 Notes and 2026 Notes and the guarantees thereof are effectively subordinated to all existing and future secured debt of ASI and the guarantors, to the extent of the value of the assets securing such debt, and structurally subordinated to all of the liabilities of any of ASI's subsidiaries that do not guarantee the 2024 Notes and 2026 Notes. Interest on the 2024 Notes is payable on January 15 and July 15 of each year. Interest on the 2026 Notes is payable on June 1 and December 1 of each year. In the event of certain types of changes of control, the holders of the 2024 Notes or 2026 Notes may require ASI to purchase for cash all or a portion of their 2024 Notes or 2026 Notes, as applicable, at a purchase price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest, if any, but not including, the purchase date. Beginning January 15, 2019, ASI has the option to redeem all or a portion of the 2024 Notes at any time at the redemption prices set forth in the 2024 Notes Indenture, plus accrued and unpaid interest. Beginning June 1, 2021, ASI has the option to redeem all or a portion of the 2026 Notes at any time at the redemption prices set forth in the 2026 Notes Indenture, plus accrued and unpaid interest. The 2024 Notes Indenture and 2026 Notes Indenture contain covenants limiting ASI's ability and the ability of its restricted subsidiaries to: incur additional indebtedness or issue certain preferred shares; pay dividends and make certain distributions, investments and other restricted payments; create certain liens; sell assets; enter into transactions with affiliates; limit the ability of restricted subsidiaries to make payments to ASI; enter into sale and leaseback transactions; merge, consolidate, sell or otherwise dispose of all or substantially all of ASI's assets; and designate ASI's subsidiaries as unrestricted subsidiaries. They also provide for events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the 2024 Notes and 2026 Notes to become or to be declared due and payable. Fiscal 2017 Refinancing Transactions During fiscal 2017, the net proceeds from the 2025 Notes and borrowings under the senior secured term loan facilities under the Credit Agreement were used to repay all existing outstanding borrowings under the term loans under the Previous Credit Agreement, to redeem ASI's 5.750% senior notes, due March 2020 (the "2020 Notes"), and to pay certain fees and related expenses. The Company recorded $28.5 million of charges to "Interest and Other Financing Costs, net" in the Consolidated Statements of Income for the fiscal year ended September 29, 2017, consisting of $25.2 million of non-cash charges for the write-off of deferred financing costs and original issue discount and $3.3 million for the call premium on the 2020 Notes. The Company used the borrowings to pay down a portion of the existing U.S. Term Loan B due 2024 loans outstanding under the Credit Agreement and to pay certain related fees and expenses. Receivables Facility The Company has an agreement (the "Receivables Facility") with three financial institutions where it sells on a continuous basis an undivided interest in all eligible trade accounts receivable, as defined in the Receivables Facility. The maximum amount available under the Receivables Facility is $400.0 million , which expires in May 2021. In addition, the Receivables Facility includes a seasonal tranche which increases the capacity of the Receivables Facility and maximum amount available by $100.0 million from October through March. Pursuant to the Receivables Facility, the Company formed ARAMARK Receivables, LLC, a wholly-owned, consolidated, bankruptcy-remote subsidiary. ARAMARK Receivables, LLC was formed for the sole purpose of buying and selling receivables generated by certain subsidiaries of the Company. Under the Receivables Facility, the Company and certain of its subsidiaries transfer without recourse all of their accounts receivable to ARAMARK Receivables, LLC. As collections reduce previously transferred interests, interests in new, eligible receivables are transferred to ARAMARK Receivables, LLC, subject to meeting certain conditions. As of September 27, 2019 and September 28, 2018 , there were no borrowings outstanding on the Receivables Facility. Future Maturities and Interest and Other Financing Costs, net At September 27, 2019 , annual maturities on long-term borrowings maturing in the next five fiscal years and thereafter (excluding the $48.3 million reduction to long-term borrowings from debt issuance costs and the increase of $10.0 million from the premium on the 2024 Notes) are as follows (in thousands): 2020 $ 69,928 2021 69,936 2022 72,695 2023 93,736 2024 2,106,525 Thereafter 4,307,650 The components of interest and other financing costs, net, are summarized as follows (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 (1) September 29, 2017 (1) Interest expense $ 352,812 $ 353,048 $ 285,995 Interest income (28,985 ) (16,964 ) (12,372 ) Other financing costs 11,160 10,451 7,362 Total $ 334,987 $ 346,535 $ 280,985 (1) Fiscal 2018 and 2017 balances have been restated to reflect the impact of the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (see Note 1). |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Sep. 27, 2019 | |
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 for designated hedges. 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 $2.5 billion notional amount of outstanding interest rate swap agreements as of September 27, 2019 , which fixes the rate on a like amount of variable rate borrowings through the first quarter of fiscal 2023. During fiscal 2019 , the Company entered into approximately $500.0 million notional amount of interest rate swap agreements to hedge the cash flow risk of variability in interest payments on variable rate borrowings. In addition, interest rate swaps with notional amounts of $575.0 million matured during fiscal 2019 . As a result of the Credit Agreement entered into in fiscal 2017, the Company de-designated the previous interest rate swap agreements as the terms of the interest rate swaps did not match the terms of the new term loans. Prior to the Credit Agreement, these agreements met the required criteria to be designated as cash flow hedging instruments. The Company then amended the interest rate swap agreements to match the terms of the new term loans under the Credit Agreement to meet the criteria to be designated as cash flow hedging instruments. As a result of the de-designation, the Company recorded charges to "Interest and Other Financing Costs, net" in the Consolidated Statements of Income during fiscal 2017 of approximately $2.9 million for the changes in market value of the interest rate swaps. Changes in the fair value of a derivative that is designated as and meets all the required criteria for a cash flow hedge are recorded in accumulated other comprehensive income (loss) and reclassified into earnings as the underlying hedged item affects earnings. 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 September 27, 2019 and September 28, 2018 , approximately ($31.1) 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): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Interest rate swap agreements $ (84,392 ) $ 55,445 $ 31,884 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 September 27, 2019 , the Company has contracts for approximately 18.6 million gallons outstanding through fiscal 2020 . 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 $4.1 million for fiscal 2019 and not material in both fiscal year 2018 and 2017 . The change in fair value for unsettled contracts is included in "Selling and general corporate expenses" in the Consolidated Statements of Income. When the contracts settle, the gain or loss is recorded to "Costs of services provided" in the Consolidated Statements of Income. As of September 27, 2019 , the Company had foreign currency forward exchange contracts outstanding with notional amounts of €72.6 million , CAD 30.0 million and £7.5 million to mitigate the risk of changes in foreign currency exchange rates on short-term intercompany loans to certain international subsidiaries. Gains and losses on these foreign currency exchange contracts are recognized in earnings 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 16 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments in the Consolidated Balance Sheets (in thousands): Balance Sheet Location September 27, 2019 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 — 54,708 Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ 64 $ 209 Gasoline and diesel fuel agreements Prepayments and other current assets — 3,623 $ 64 $ 59,999 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Other Noncurrent Liabilities $ 43,112 $ — Not designated as hedging instruments: Gasoline and diesel fuel agreements Accounts Payable $ 462 $ — $ 43,574 $ — 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 Consolidated Statements of Income (in thousands): Fiscal Year Ended Income Statement Location September 27, 2019 September 28, 2018 September 29, 2017 Designated as hedging instruments: Interest rate swap agreements Interest and Other Financing Costs, net $ (6,484 ) $ 5,185 $ 16,606 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 6,168 $ (7,360 ) $ (1,277 ) Foreign currency forward exchange contracts Interest and Other Financing Costs, net 145 (67 ) (886 ) $ 6,313 $ (7,427 ) $ (2,163 ) $ (171 ) $ (2,242 ) $ 14,443 The Company has an outstanding Japanese yen denominated term loan in the amount of ¥ 10,378.1 million . The term loan was designated as a hedge of the Company's net Japanese currency exposure represented by the equity investment in our Japanese affiliate, AIM Services Co., Ltd. Additionally, the Company has a Euro denominated term loan in the amount of € 124.4 million . The term loan was designated as a hedge of the Company's net Euro currency exposure represented by certain holdings in our European affiliates. At September 27, 2019 , the net of tax loss expected to be reclassified from "Accumulated other comprehensive loss" into earnings over the next twelve months based on current market rates is approximately $10.0 million |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 27, 2019 | |
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 it serves. Within our FSS United States and FSS International segments, the Company provides food and beverage services, including catering and retail services, or facilities services, including plant operations and maintenance, custodial, housekeeping, landscaping and other services. Within the Uniform segment, the Company provides a full service uniform solution, including delivery, cleaning and maintenance. In accordance with ASC 606, the Company accounts for a customer contract when both parties have approved the arrangement 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. Each contract generally has one performance obligation, which is satisfied over time. The Company primarily accounts for its performance obligations under the series guidance, using the as-invoiced practical expedient when applicable. The Company applies 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. 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; therefore, the variable fees are recognized in the period they are earned. Impact of New Revenue Recognition Standard As a result of the adoption of ASC 606, the following changes occurred with respect to financial statement line item classification in the Company's 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” ( $111.0 million and $97.2 million as of September 27, 2019 and September 29, 2018, respectively); Other Reclassifications and Changes in Presentation: • certain fees within the Uniform segment, $358.6 million for fiscal 2019, 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” ( $785.4 million as of September 27, 2019 ) or as long-term prepaid rent or costs to fulfill in “Other Assets” ( $166.9 million and $109.4 million as of September 27, 2019 , respectively) and primarily classified in “Depreciation and amortization” or “Cost of services provided;” • costs to fulfill contracts related to personalized work apparel, linens and other rental items in service, previously capitalized within "Inventories" are now capitalized within "Other Assets" ( $356.9 million as of September 27, 2019 ); and • certain client contract investments, previously included within "Purchases of property and equipment and other" in Net cash provided by (used in) investing activities on the Consolidated Statements of Cash Flows, are now included within "Payments made to clients on contracts" in Net cash provided by operating activities. The following table compares the reported Consolidated Balance Sheet as of September 27, 2019 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): September 27, 2019 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 ASSETS Current Assets: Cash and cash equivalents $ 246,643 $ — $ 246,643 Receivables, net 1,806,964 — 1,806,964 Inventories 411,319 356,853 768,172 Prepayments and other current assets 193,461 — 193,461 Total current assets 2,658,387 356,853 3,015,240 Property and Equipment, net 2,181,762 (785,360 ) 1,396,402 Goodwill 5,518,800 — 5,518,800 Other Intangible Assets 2,033,566 — 2,033,566 Other Assets 1,343,806 307,419 1,651,225 $ 13,736,321 $ (121,088 ) $ 13,615,233 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ 69,928 $ — $ 69,928 Accounts payable 999,517 — 999,517 Accrued expenses and other current liabilities 1,635,853 (26,665 ) 1,609,188 Total current liabilities 2,705,298 (26,665 ) 2,678,633 Long-Term Borrowings 6,612,239 — 6,612,239 Deferred Income Taxes and Other Noncurrent Liabilities 1,088,822 (25,525 ) 1,063,297 Redeemable Noncontrolling Interest 9,915 — 9,915 Stockholders' Equity: Common stock 2,829 — 2,829 Capital surplus 3,236,450 — 3,236,450 Retained earnings 1,107,029 (68,898 ) 1,038,131 Accumulated other comprehensive loss (216,965 ) — (216,965 ) Treasury stock (809,296 ) — (809,296 ) Total stockholders' equity 3,320,047 (68,898 ) 3,251,149 $ 13,736,321 $ (121,088 ) $ 13,615,233 The following table compares the reported Consolidated Statements of Income for the fiscal year ended September 27, 2019 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): Fiscal year ended September 27, 2019 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 Revenue $ 16,227,341 $ (317,497 ) $ 15,909,844 Costs and Expenses: Cost of services provided 14,532,662 (322,411 ) 14,210,251 Depreciation and amortization 592,573 18,581 611,154 Selling and general corporate expenses 367,256 — 367,256 Gain on sale of Healthcare Technologies (156,309 ) — (156,309 ) 15,336,182 (303,830 ) 15,032,352 Operating income 891,159 (13,667 ) 877,492 Interest and Other Financing Costs, net 334,987 — 334,987 Income Before Income Taxes 556,172 (13,667 ) 542,505 Provision for Income Taxes 107,706 (3,554 ) 104,152 Net income 448,466 (10,113 ) 438,353 Less: Net loss attributable to noncontrolling interest (83 ) — (83 ) Net income attributable to Aramark stockholders $ 448,549 $ (10,113 ) $ 438,436 Disaggregation of Revenue The following table presents revenue disaggregated by revenue source (in millions): Fiscal Year Ended September 27, 2019 FSS United States: Business & Industry $ 1,587.0 Education 3,228.8 Healthcare 933.5 Sports, Leisure & Corrections 2,557.5 Facilities & Other 1,591.8 Total FSS United States $ 9,898.6 FSS International: Europe 2,044.4 Rest of World 1,698.5 Total FSS International $ 3,742.9 Uniform $ 2,585.8 Total Revenue $ 16,227.3 Contract Balances The Company defers sales commissions earned by its 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, approximately 8.5 years , and are 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 fiscal year ended September 27, 2019 , the Company expensed approximately $20.0 million of these costs to “Cost of services provided” in the Consolidated Statements of Income. Leasehold improvements and 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 fiscal year ended September 27, 2019 , the Company expensed approximately $149.0 million of leasehold improvements and approximately $20.5 million of cost to fulfill assets, respectively, to "Depreciation and amortization" in the Consolidated Statements of Income. Long-term prepaid rent is 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 fiscal year ended September 27, 2019 , the Company expensed approximately $16.0 million of these costs to "Cost of services provided" in the Consolidated Statements of Income. Other costs to fulfill contracts represent personalized work apparel, linens and other rental items in service in the Uniform segment. 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 $318.2 million during the fiscal year ended September 27, 2019 related to these costs, which was recorded in "Costs of services provided" in the Consolidated Statements of Income. Deferred income is recognized in "Accrued expenses and other current liabilities" in the 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 income as current as the arrangement is short term in nature. During the fiscal year ended September 27, 2019 , deferred income increased related to customer prepayments and decreased related to income recognized during the period as a result of satisfying the performance obligation. 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, September 27, 2019 Deferred income 281.5 1,364.3 (1,326.8 ) 319.0 |
Employee Pension and Profit Sha
Employee Pension and Profit Sharing Plans | 12 Months Ended |
Sep. 27, 2019 | |
Retirement Benefits [Abstract] | |
Employee Pension and Profit Sharing Plans | EMPLOYEE PENSION AND PROFIT SHARING PLANS: In the United States, the Company maintains qualified contributory and non-contributory defined contribution retirement plans for eligible employees, with Company contributions to the plans based on earnings performance or salary level. The Company also has a non-qualified retirement savings plan for certain employees. The total expense of the above plans for fiscal 2019 , fiscal 2018 and fiscal 2017 was $41.5 million , $22.5 million and $27.5 million , respectively. The increase in the expense in fiscal 2019 compared to fiscal 2018 is due to the additional employer matching contributions as a result of the cash tax savings from U.S. tax reform. The Company also maintains similar contributory and non-contributory defined contribution retirement plans at several of its international operations, primarily in Canada and the United Kingdom. The total expense of these international plans for fiscal 2019 , fiscal 2018 and fiscal 2017 was $11.7 million , $8.6 million and $6.9 million , respectively. The following table sets forth the components of net periodic pension cost for the Company's single-employer defined benefit pension plans for fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Service cost $ 6,391 $ 7,121 $ 8,834 Interest cost 11,287 10,579 8,398 Expected return on plan assets (22,970 ) (22,864 ) (18,350 ) Settlements and curtailments 283 3,312 — Amortization of prior service cost 104 116 122 Recognized net loss 1,094 1,646 3,400 Net periodic pension cost (income) $ (3,811 ) $ (90 ) $ 2,404 The following table sets forth changes in the projected benefit obligation and the fair value of plan assets for these plans (in thousands): Change in benefit obligation: September 27, 2019 September 28, 2018 Benefit obligation, beginning $ 366,426 $ 333,672 Impact of AmeriPride acquisition — 79,605 Foreign currency translation (13,097 ) (11,312 ) Service cost 6,391 7,121 Interest cost 11,287 10,579 Employee contributions 2,249 2,571 Actuarial loss (gain) 49,707 (10,869 ) Benefits paid (16,681 ) (16,862 ) Settlements and curtailments (1) (5,075 ) (22,662 ) Change in control payment — (5,417 ) Benefit obligation, ending $ 401,207 $ 366,426 Change in plan assets: Fair value of plan assets, beginning $ 409,826 $ 341,538 Impact of AmeriPride acquisition — 73,273 Foreign currency translation (14,360 ) (12,359 ) Employer contributions 10,520 13,988 Employee contributions 2,249 2,571 Actual return on plan assets 39,280 23,971 Benefits paid (16,681 ) (16,862 ) Settlements (1) (4,867 ) (10,877 ) Change in control payment — (5,417 ) Fair value of plan assets, end 425,967 409,826 Funded Status at end of year $ 24,760 $ 43,400 (1) Fiscal 2019 includes the impact of closing two of the AmeriPride plans. Fiscal 2018 includes the impact of the Canadian pension plan freeze and the UK pension plan settlement resulting from the transfer of members out of the plan. Amounts recognized in the Consolidated Balance Sheets consist of the following (in thousands): September 27, 2019 September 28, 2018 Noncurrent benefit asset (included in Other Assets) $ 35,459 $ 59,481 Noncurrent benefit liability (included in Other Noncurrent Liabilities) (10,699 ) (16,081 ) Net actuarial loss (included in Accumulated other comprehensive loss before taxes) 77,204 48,067 The following weighted average assumptions were used to determine pension expense of the respective fiscal years: September 27, 2019 September 28, 2018 Discount rate 3.3 % 3.2 % Rate of compensation increase 2.1 % 2.0 % Long-term rate of return on assets 5.7 % 5.8 % The following weighted average assumptions were used to determine the funded status of the respective fiscal years: September 27, 2019 September 28, 2018 Discount rate 2.5 % 3.3 % Rate of compensation increase 2.1 % 2.1 % Assumptions, including discount rate, expected return on assets, compensation increases and health care trends, are adjusted annually, as necessary, based on prevailing market conditions and actual experience. The Company applies a spot-rate approach for the discount rate used in the calculation of pension interest and service cost. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation. The accumulated benefit obligation as of September 27, 2019 was $398.8 million . During fiscal 2019 , settlement gains and actuarial losses of approximately $0.1 million and $32.9 million , respectively, were recognized in other comprehensive loss (before taxes) and $1.2 million of actuarial losses were recognized as net periodic pension cost during such period. The estimated portion of net actuarial loss included in accumulated other comprehensive loss as of September 27, 2019 expected to be recognized in net periodic pension cost during fiscal 2020 is approximately $1.8 million (before taxes). The accumulated benefit obligation as of September 28, 2018 was $364.0 million . During fiscal 2018 , settlement gains and actuarial losses of approximately $3.9 million and $22.2 million , respectively, were recognized in other comprehensive income (before taxes) and $1.6 million of amortization of actuarial losses was recognized as net periodic pension cost during such period. The following table sets forth information for the Company's single-employer pension plans with an accumulated benefit obligation in excess of plan assets as of September 27, 2019 and September 28, 2018 (in thousands): September 27, 2019 September 28, 2018 Projected benefit obligation $ 10,699 $ 16,081 Accumulated benefit obligation 10,506 15,935 Assets of the plans are invested with the goal of principal preservation and enhancement over the long-term. The primary goal is total return, consistent with prudent investment management. The Company's investment policies also require an appropriate level of diversification across the asset categories. The current overall capital structure and targeted ranges for asset classes are 0 - 20 % invested in equity securities, 70 - 100 % invested in debt securities and 0 - 10% in real estate investments and cash and cash equivalents. Performance of the plans is monitored on a regular basis and adjustments of the asset allocations are made when deemed necessary. The weighted-average long-term rate of return on assets has been determined based on an estimated weighted-average of long-term returns of major asset classes, taking into account historical performance of plan assets, the current interest rate environment, plan demographics, acceptable risk levels and the estimated value of active asset management. The fair value of plan assets for the Company's defined benefit pension plans as of September 27, 2019 and September 28, 2018 is as follows (see Note 16 for a description of the fair value levels) (in thousands): September 27, 2019 Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Cash and cash equivalents and other $ 19,396 $ 19,396 $ — $ — Equity securities: Investment trusts 4,677 4,677 — — Investment funds: Equity funds 72,074 — 72,074 — Fixed income funds 319,395 — 319,395 — Real estate 10,425 — — 10,425 Total $ 425,967 $ 24,073 $ 391,469 $ 10,425 September 28, 2018 Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Cash and cash equivalents and other $ 20,568 $ 20,568 $ — $ — Equity securities: Investment trusts 11,689 $ 11,689 — — Investment funds: Equity funds 220,853 — 220,853 — Fixed income funds 146,271 — 146,271 — Real estate 10,445 — — 10,445 Total $ 409,826 $ 32,257 $ 367,124 $ 10,445 The fair value of the investment funds is based on the value of the underlying assets, as reported to the Plan by the trustees. They are comprised of a portfolio of underlying securities that can be valued based on trading information on active markets. Fair value is calculated by applying the Plan's percentage ownership in the fund to the total market value of the account's underlying securities, and is therefore categorized as Level 2 as the Plan does not directly own shares in these underlying investments. Investments in equity securities include publicly-traded domestic companies (approximately 35% ) and international companies (approximately 65% ) that are diversified across industry, country and stock market capitalization. Investments in fixed income securities consist of international corporate bonds and government securities. Substantially all of the real estate investments are in international markets. Cash and cash equivalents include direct cash holdings, which are valued based on cost, and short-term deposits and investments in money market funds for which fair value measurements are all based on quoted prices for similar assets or liabilities in markets that are active. During fiscal 2018, the Company amended certain Canadian pension plans to freeze benefit accruals. The plan is closed to new participants and current participants no longer earn additional benefits. During fiscal 2019 in conjunction with the planned wind down of the Canadian plan, the Company reallocated the plan assets to be entirely invested in debt securities. It is the Company's policy to fund at least the minimum required contributions as outlined in the required statutory actuarial valuation for each plan. The following table sets forth the benefits expected to be paid in the next five fiscal years and in aggregate for the five fiscal years thereafter by the Company's defined benefit pension plans (in thousands): Fiscal 2020 $ 13,601 Fiscal 2021 14,063 Fiscal 2022 14,448 Fiscal 2023 14,819 Fiscal 2024 15,121 Fiscal 2025 – 2029 81,559 The estimated benefit payments above are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates. The expected contributions to be paid to the Company's defined benefit pension plans during fiscal 2020 are approximately $4.1 million . Multiemployer Defined Benefit Pension Plans The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements ("CBA") that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following respects: a. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. c. If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Company's participation in these plans for fiscal 2019 is outlined in the table below. The "EIN/Pension Plan Number" column provides the Employee Identification Number (EIN) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2019 and 2018 is for the plans' two most recent fiscal year-ends. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the critical and declining zone are generally less than 65% funded and projected to become insolvent in the next 15 or 20 years depending on the ratio of active to inactive participants, plans in the critical zone are generally less than 65% funded, plans in the endangered zone are less than 80% funded, and plans in the green zone are at least 80% funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the CBA(s) to which the plans are subject. There have been no significant changes that affect the comparability of fiscal 2019 , fiscal 2018 and fiscal 2017 contributions. Pension Fund EIN/Pension Plan Number Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions by the Company (in thousands) Range of Expiration Dates of CBAs 2019 2018 2019 2018 2017 Surcharge Imposed National Retirement Fund 13-6130178/ 001 Critical Critical Implemented $ 4,130 $ 4,147 $ 7,541 No 3/1/2019 - 4/1/2022 UNITE HERE Retirement Fund (1) 82-0994119/ 001 Critical Critical Implemented 4,531 3,686 N/A No 6/30/2019 - 6/30/2023 Local 1102 Retirement Trust 13-1847329/ 001 Endangered Endangered Implemented 110 1,206 397 No 10/31/2020 Central States SE and SW Areas Pension Plan 36-6044243/ 001 Critical and Declining Critical and Declining Implemented 4,282 4,128 3,836 No 1/31/2007 - 3/31/2023 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 23-2627428/ 001 Critical Critical Implemented 361 319 336 No 1/31/2023 Local 731 Private Scavengers and Garage Attendants Pension Trust Fund 36-6513567/ 001 Green Green N/A 973 907 898 No 4/26/2019 SEIU National Industry Pension Fund (2) 52-6148540/ 001 Critical Critical Implemented 623 501 429 No 12/31/2019 - 4/14/2022 LIUNA National Industrial Pension Fund 52-6074345/ 001 Critical Critical Implemented 678 620 584 No 12/31/2020 Other funds 17,873 17,109 14,668 Total contributions $ 33,561 $ 32,623 $ 28,689 (1) Effective January 1, 2018, the UNITE HERE portion of the National Retirement Fund was spun off into the newly formed UNITE HERE Retirement Fund. (2) Over 75% of the Company's participants in this fund are covered by a single CBA that expires on 12/31/2019. The Company provided more than 5 percent of the total contributions for the following plans and plan years: Pension Contributions to the plan exceeded more than 5% of total contributions (as of the plan's year-end) Local 1102 Retirement Trust 12/31/2018 and 12/31/2017 Service Employees Pension Fund of Upstate New York 12/31/2018 and 12/31/2017 At the date the Company's financial statements were issued, Forms 5500 were not available for the plan years ending in 2019 . |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES: The Company accounts for income taxes using the asset and liability method. Under this method, the provision for income taxes represents income taxes payable or refundable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax bases in assets and liabilities and are adjusted for changes in tax rates and enacted tax legislation. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The components of income before income taxes by source of income are as follows (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 United States $ 418,902 $ 326,277 $ 362,783 Non-U.S. 137,270 145,599 157,859 $ 556,172 $ 471,876 $ 520,642 The provision (benefit) for income taxes consists of (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Current: Federal $ 8,781 $ (48,249 ) $ 111,175 State and local 19,966 11,356 15,455 Non-U.S. 38,456 44,618 57,681 67,203 7,725 184,311 Deferred: Federal 35,251 (113,475 ) (21,956 ) State and local 7,683 7,408 3,165 Non-U.S. (2,431 ) 1,778 (19,065 ) 40,503 (104,289 ) (37,856 ) $ 107,706 $ (96,564 ) $ 146,455 Current taxes receivable of $35.1 million and $7.5 million at September 27, 2019 and September 28, 2018 , respectively, are included in "Prepayments and other current assets" in the Consolidated Balance Sheets. Current income taxes payable of $8.1 million and $47.9 million at September 27, 2019 and September 28, 2018 , respectively, are included in "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets. The provision for income taxes varies from the amount determined by applying the United States Federal statutory rate to pretax income as a result of the following (all percentages are as a percentage of income before income taxes): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 United States statutory income tax rate 21.0 % 24.5 % 35.0 % Increase (decrease) in taxes, resulting from: State income taxes, net of Federal tax benefit 4.2 3.2 2.3 Foreign taxes (1) 2.2 3.3 (4.3 ) Permanent book/tax differences 0.4 (1.2 ) (3.8 ) Uncertain tax positions — (0.3 ) 1.4 U.S. Tax Reform - Remeasurement of deferred taxes — (49.3 ) — U.S. Tax Reform - Foreign tax credit valuation allowance (2.3 ) 2.8 — Sale of Healthcare Technologies (4.4 ) — — Tax credits & other (1.7 ) (3.5 ) (2.5 ) Effective income tax rate 19.4 % (20.5 )% 28.1 % (1) Includes differences between the United States statutory tax rate and tax rates in foreign jurisdictions, foreign withholding taxes and taxation of foreign earnings, which includes the transition tax on deemed repatriated earnings of foreign subsidiaries and the tax on "Global Intangible Low-Taxed Income" ("GILTI"). The effective tax rate is based on expected income, statutory tax rates and tax planning opportunities available to the Company in the various jurisdictions in which it operates. Judgment is required in determining the effective tax rate and in evaluating the tax return positions. Reserves are established when positions are "more likely than not" to be challenged and not sustained. Reserves are adjusted at each financial statement date to reflect the impact of audit settlements, expiration of statutes of limitation, developments in tax law and ongoing discussions with tax authorities. Accrued interest and penalties associated with uncertain tax positions are recognized as part of the income tax provision. As of September 27, 2019 , certain subsidiaries have recorded deferred tax assets of $27.4 million associated with accumulated federal, state and foreign net operating loss ("NOL") carryforwards. The Company believes it is more likely than not that the benefit from certain state and foreign net operating loss carryforwards will not be realized. As a result, the Company has recorded a valuation allowance of approximately $17.5 million on the deferred tax asset related to these state and foreign NOL carryforwards. The impact of the change in valuation allowances for state and foreign NOLs is presented in the State income taxes, net of Federal tax benefit and Foreign taxes lines, respectively, of the effective income tax rate reconciliation. As of September 27, 2019 , the Company has approximately $28.1 million of foreign tax credit ("FTC") carryforwards, which expire in 2027 , and approximately $0.9 million of interest restriction carryforwards. As of September 27, 2019 and September 28, 2018 , the components of deferred taxes are as follows (in thousands): September 27, 2019 September 28, 2018 Deferred tax liabilities: Property and equipment $ 137,293 $ 126,345 Investments 11,902 12,213 Other intangible assets, including goodwill 462,637 474,263 Cost to fulfill - Rental merchandise in-service 83,483 63,835 Derivatives — 21,599 Other 37,309 17,450 Gross deferred tax liability 732,624 715,705 Deferred tax assets: Derivatives 11,949 — Insurance 34,112 40,240 Employee compensation and benefits 113,269 136,603 Accruals and allowances 31,844 19,338 Net operating loss/credit carryforwards and other 56,508 60,576 Gross deferred tax asset, before valuation allowances 247,682 256,757 Valuation allowances (17,532 ) (29,023 ) Net deferred tax liability $ 502,474 $ 487,971 Rollforward of the valuation allowance is as follows: September 27, 2019 September 28, 2018 Balance, beginning of year $ (29,023 ) $ (11,513 ) Additions (1) (2,330 ) (21,101 ) Subtractions (2) 13,821 3,591 Balance, end of year $ (17,532 ) $ (29,023 ) (1) The additions in fiscal 2019 were mainly driven by losses in certain foreign subsidiaries. The additions in fiscal 2018 were mainly driven by the Tax Cuts and Jobs Act impacting the ability to utilize FTC carryforwards going forward, as well as the inability to use foreign NOL carryforwards. (2) Valuation allowances against FTC carryforwards were released during fiscal 2019 as a result of Treasury Regulations. During fiscal 2018, tax planning resulted in taxable income in separate Company states that had historical losses. Deferred tax liabilities of approximately $519.9 million and $503.4 million as of September 27, 2019 and September 28, 2018 , respectively, are included in "Deferred Income Taxes and Other Noncurrent Liabilities" in the Consolidated Balance Sheets. Deferred tax assets of approximately $17.4 million and $15.5 million as of September 27, 2019 and September 28, 2018 , respectively, are included in "Other Assets" in the Consolidated Balance Sheets. The Company has approximately $36.3 million of total gross unrecognized tax benefits as of September 27, 2019 , of which $33.4 million , if recognized, would impact the effective tax rate and $2.9 million would result in an adjustment to the deferred tax liability. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows (in thousands): September 27, 2019 September 28, 2018 Balance, beginning of year $ 29,089 $ 30,812 Additions based on tax positions taken in the current year 3,713 709 Additions for tax positions taken in prior years 6,531 1,505 Reductions for remeasurements, settlements and payments (1,484 ) (2,368 ) Reductions due to statute expiration (1,577 ) (1,569 ) Balance, end of year $ 36,272 $ 29,089 The Company has approximately $5.5 million and $4.9 million accrued for interest and penalties as of September 27, 2019 and September 28, 2018 , respectively, and recorded $0.6 million and an immaterial amount in interest and penalties during fiscal 2019 and fiscal 2018 , respectively. Interest and penalties related to unrecognized tax benefits are recorded in "Provision (Benefit) for income taxes" in the Consolidated Statements of Income. Unrecognized tax benefits are not expected to significantly change within the next 12 months. Generally, a number of years may elapse before a tax reporting year is audited and finally resolved. With few exceptions, the Company is no longer subject to U.S. federal, state or local examinations by tax authorities before 2015. While it is often difficult to predict the final outcome or the timing of or resolution of a particular tax matter, the Company does not anticipate any adjustments resulting from U.S. federal, state or foreign tax audits that would result in a material change to the financial condition or results of operations. Adequate amounts are established for any adjustments that may result from examinations for tax years after 2015. However, an unfavorable settlement of a particular issue would require use of the Company's cash and cash equivalents. 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 included 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 ended September 28, 2018. The provisions effective for fiscal 2019 are the tax on GILTI, the deduction for "Foreign-Derived Intangible Income" ("FDII"), the Internal Revenue Code ("IRC") Section163(j) limitation on interest expense and the IRC Section 162(m) limitation on certain executive compensation. The Tax Legislation required the Company to use a blended rate for its fiscal 2018 tax year by applying a prorated percentage of days before and after the January 1, 2018 effective date. As a result, the Company's 2018 annual statutory rate was reduced to 24.5% . 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 a provisional estimate 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 enactment of the Tax Legislation, the Company was required to recognize the effect of the corporate income tax rate change on its deferred tax assets and liabilities in fiscal 2018, the period in which the legislation was enacted. The Company recorded a tax benefit from the corporate income tax rate change and certain other adjustments, which resulted in a noncash benefit to the provision (benefit) for income taxes of approximately $237.8 million , which was recorded to the Consolidated Statements of Income for the fiscal year ended September 28, 2018. A corresponding reduction to the Company's deferred income tax liability was also recorded to the Consolidated Balance Sheets during the fiscal year ended September 28, 2018. The Tax Legislation also required the Company to calculate a one-time transition tax on unremitted earnings of certain non-U.S. subsidiaries. Based on an estimate, the Company believed there was no transition tax due, net of foreign tax credits. As a result of the Tax Legislation, the Company reassessed the ability to recover its $27.2 million of FTC carryforwards. Based on then 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 FTC carryforward during fiscal 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 reduce the $13.1 million valuation allowance by $9.5 million , which was recorded as a tax benefit to the provision for income taxes during the first quarter of fiscal 2019. During the second quarter of fiscal 2019, the Company reduced the remaining $3.6 million valuation allowance and recorded a related uncertain tax position of $2.7 million , resulting in a net benefit to the provision for income taxes of $0.9 million . The Tax Legislation contains additional international provisions which impact the Company beginning in fiscal 2019, including the tax on GILTI. The impact of the GILTI liability did not 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 during the first quarter of fiscal 2019. As the result of the new rules, which include a shift from a worldwide system of taxation to a participation exemption system, the Company generally will not incur additional U.S. tax liability on the distribution of unremitted foreign earnings. However, other items continue to trigger additional tax expense for which no deferred tax liability has been recorded, including Section 986(c) currency gain/loss, foreign withholding taxes and state taxes. The undistributed earnings of certain foreign subsidiaries for which no deferred tax liability was recorded amounted to approximately $184.0 million and $86.3 million as of September 27, 2019 and September 28, 2018 , respectively. The foreign withholding tax cost associated with remitting these earnings is approximately $11.0 million and $5.1 million as of September 27, 2019 and September 28, 2018 , respectively. Such amounts have not been accrued by the Company as it believes those foreign earnings are permanently reinvested. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 27, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY: On August 6, 2019, the Board of Directors authorized a new share repurchase program providing for purchases up to $200.0 million of Aramark common stock through July 2022. During fiscal 2017, the Board of Directors authorized a share repurchase program providing for purchases of up to $250.0 million of Aramark common stock which expired February 1, 2019. During fiscal 2019 , the Company completed a repurchase of 1.6 million shares of its common stock for $50.0 million under this program. During fiscal 2018 , the Company completed a repurchase of 0.6 million shares of its common stock for $24.4 million . The following table presents the Company's dividend payments to its stockholders (in millions): September 27, 2019 September 28, 2018 September 29, 2017 Dividend payments $ 108.4 $ 103.1 $ 100.8 On November 15, 2019 , a $0.11 dividend per share of common stock was declared, payable on December 9, 2019 , to shareholders of record on the close of business on December 2, 2019 . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Sep. 27, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION: On November 12, 2013, the Board of Directors (the "Board") approved, and the stockholders of Aramark adopted by written consent, the Aramark 2013 Stock Incentive Plan (the "Old 2013 Stock Plan"), which became effective on December 1, 2013 and the amended and restated Old 2013 Stock Plan was approved by the Board on November 9, 2016 and approved by the stockholders of Aramark on February 1, 2017 (as amended, the "2013 Stock Plan"). The 2013 Stock Plan provides that the total number of shares of common stock that may be issued under the 2013 Stock Plan is 25,500,000 . The following table summarizes the share-based compensation expense and related information for Time-Based Options ("TBOs"), Performance-Based Options ("PBOs"), Time-Based Restricted Stock Units ("RSUs"), Performance Stock Units and Performance Restricted Stock ("PSUs"), and Deferred Stock Units classified as "Selling and general corporate expenses" in the Consolidated Statements of Income (in millions). Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 TBOs $ 14.7 $ 18.5 $ 20.4 RSUs 28.9 24.1 20.8 PSUs (1) 9.9 43.7 21.6 Deferred Stock Units 1.8 2.0 2.4 $ 55.3 $ 88.3 $ 65.2 Taxes related to share-based compensation $ 13.7 $ 24.1 $ 24.2 Cash Received from Option Exercises 39.1 21.5 28.8 Tax Benefit on Share Deliveries (2) 4.8 7.4 23.3 (1) Share-based compensation expense was reduced during fiscal 2019 based on lower than estimated target attainment on plan metrics for the fiscal 2018 PSU grants, resulting in the reversal of previously recognized share-based compensation expense of $6.6 million. The Company also reversed previously recognized share-based compensation expense based on the actual target for the 2017 PSU grants achieved as of the end of fiscal 2019 of $5.2 million. During fiscal 2018, the Company increased the estimated target attainment on plan metrics for both the fiscal 2016 and fiscal 2017 PSU grants, resulting in an additional $18.9 million of share-based compensation expense. (2) The tax benefit on option exercises and restricted stock unit deliveries is included in "Accrued Expenses" in the Consolidated Statements of Cash Flows. No compensation expense was capitalized. Prior to the fourth quarter of fiscal 2018, the Company has applied a forfeiture assumption of 8.7% per annum in the calculation of such expenses. The rate was reduced to approximately 6.4% per annum in the fourth quarter of fiscal 2018 based on actual forfeiture activity. The below table summarizes the unrecognized compensation expense as of September 27, 2019 related to nonvested awards and the weighted-average period they are expected to be recognized: Unrecognized Compensation Expense (in millions) Weighted-Average Period (Years) TBOs $ 15.7 2.25 RSUs 54.5 2.34 PSUs 15.9 1.54 Total $ 86.1 Stock Options Time-Based Options TBOs vest solely based upon continued employment over a four year time period. All TBOs remain exercisable for ten years from the date of grant. The fair value of the TBOs granted was estimated using the Black-Scholes option pricing model. The expected volatility is based on a blended average of the historical volatility of the Company's and competitors' stocks over the expected term of the stock options. The expected life represents the period of time that options granted are expected to be outstanding and is calculated using the simplified method as permitted under Securities and Exchange Commission ("SEC") rules and regulations due to the method providing a reasonable estimate in comparison to actual experience. The simplified method uses the midpoint between an option's vesting date and contractual term. The risk-free rate is based on the United States Treasury security with terms equal to the expected life of the option as of the grant date. Compensation expense for TBOs is recognized on a straight-line basis over the vesting period during which employees perform related services. The table below presents the weighted average assumptions and related valuations for TBOs. Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Expected volatility 20% 20% 25% Expected dividend yield 1.17% - 1.44% 1.03% - 1.11% 1.11% - 1.21% Expected life (in years) 6.25 6.25 6.25 Risk-free interest rate 1.62% - 3.02% 2.25% - 2.94% 2.14% - 2.20% Weighted-average grant-date fair value $8.23 $8.75 $8.47 A summary of TBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value ($000s) Weighted-Average Remaining Term (Years) Outstanding at September 28, 2018 13,302 $ 26.60 Granted 1,955 $ 36.42 Exercised (1,973 ) $ 21.90 Forfeited and expired (928 ) $ 35.72 Outstanding at September 27, 2019 12,356 $ 28.22 $ 182,889 5.7 Exercisable at September 27, 2019 8,150 $ 23.82 $ 156,493 4.4 Expected to vest at September 27, 2019 3,980 $ 36.72 $ 25,066 8.2 Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Total intrinsic value exercised (in millions) $ 26.8 $ 16.6 $ 32.2 Total fair value that vested (in millions) 16.3 17.3 17.7 Performance-Based Options The Company no longer grants PBOs under the 2013 Stock Plan. All PBOs remain exercisable for ten years from the date of grant. A summary of PBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value ($000s) Weighted-Average Remaining Term (Years) Outstanding at September 28, 2018 1,875 $ 12.46 Granted — $ — Exercised (364 ) $ 11.17 Forfeited and expired — $ — Outstanding at September 27, 2019 1,511 $ 12.77 $ 45,696 2.2 Exercisable at September 27, 2019 1,511 $ 12.77 $ 45,696 2.2 The total intrinsic value of PBOs exercised during fiscal 2019 , fiscal 2018 and fiscal 2017 was $8.9 million , $7.4 million and $26.6 million , respectively. Time-Based Restricted Stock Units The RSU agreement provides for grants of RSUs, 25% of which will vest and be settled in shares on each of the first four anniversaries of the date of grant, subject to the participant's continued employment with the Company through each such anniversary. The grant-date fair value of RSUs is based on the fair value of the Company's common stock. Participants holding RSUs will receive the benefit of any dividends paid on shares in the form of additional RSUs. The unvested units are subject to forfeiture if employment is terminated other than due to death, disability or retirement, and the units are nontransferable while subject to forfeiture. Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at September 28, 2018 2,408 $ 36.66 Granted 1,204 $ 36.53 Vested (630) $ 35.49 Forfeited (333) $ 36.99 Outstanding at September 27, 2019 2,649 $ 36.89 Performance Stock Units Under the 2013 Stock Plan, the Company is authorized to grant PSUs to its employees. A participant is eligible to become vested in a number of PSUs equal to a percentage, higher or lower, of the target number of PSUs granted based on the level of the Company's achievement of the performance condition. During fiscal 2017, the Company granted PSUs subject to the level of achievement of adjusted earnings per share for the cumulative three years performance period and the participant's continued employment with the Company, which vested at the end of fiscal 2019. During both fiscal 2018 and 2019, the Company granted PSUs subject to the level of achievement of adjusted earnings per share and return on invested capital for the cumulative three year performance period and the participant's continued employment with the Company. The grant-date fair value of the PSUs is based on the fair value of the Company's common stock. Performance Stock Units Units Weighted Average Grant Date Fair Value Outstanding at September 28, 2018 1,614 $ 34.99 Granted (3) 1,299 $ 36.44 Vested (1,051) $ 32.65 Forfeited (241) $ 36.66 Outstanding at September 27, 2019 1,621 $ 36.20 (3) Includes approximately 0.5 million shares resulting from the payout of the fiscal 2016 PSU grants due to exceeding the adjusted earnings per share target. Deferred Stock Units Deferred Stock Units are issued only to non-employee members of the Board of Directors of the Company and represent the right to receive shares of the Company's common stock in the future. Each deferred stock unit will be converted to one share of the Company's common stock either on the first day of the seventh month after which such director ceases to serve as a member of the Board of Directors or at the director's election upon vesting. The grant-date fair value of deferred stock units is based on the fair value of the Company's common stock. The deferred stock units vest on the day prior to the next annual meeting of stockholders (which is generally one year after grant). The Company granted 58,912 deferred stock units during fiscal 2019 . In addition, directors may elect to defer their cash retainer into Deferred Stock Units which are fully vested upon issuance. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 27, 2019 | |
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): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Earnings: Net income attributable to Aramark stockholders $ 448,549 $ 567,885 $ 373,923 Shares: Basic weighted-average shares outstanding 246,854 245,771 244,453 Effect of dilutive securities 5,156 7,581 7,104 Diluted weighted-average shares outstanding 252,010 253,352 251,557 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 1.82 $ 2.31 $ 1.53 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 1.78 $ 2.24 $ 1.49 Share-based awards to purchase 5.2 million , 1.6 million and 3.9 million shares were outstanding at September 27, 2019 , September 28, 2018 and September 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 1.3 million shares, 1.2 million shares and 1.2 million shares were outstanding at September 27, 2019 , September 28, 2018 and September 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 | 12 Months Ended |
Sep. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES: The Company has capital and other purchase commitments of approximately $595.3 million at September 27, 2019 , primarily in connection with commitments for capital projects to help finance improvements or renovations at the facilities in which the Company operates. At September 27, 2019 , the Company also has letters of credit outstanding in the amount of $110.1 million . Certain of the Company's lease arrangements, primarily vehicle leases, with terms ranging from one to eight years , contain provisions related to residual value guarantees. The maximum potential liability to the Company under such arrangements was approximately $27.5 million at September 27, 2019 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 September 27, 2019 . Rental expense for all operating leases was $860.6 million , $187.5 million and $170.0 million for fiscal 2019 , fiscal 2018 and fiscal 2017 , respectively. The increase from fiscal 2018 to fiscal 2019 is due to the Company's adoption of ASC 606, Revenue from Contracts with Customers due to leases in the Company's revenue contracts with customers. Following is a schedule of the future minimum rental and similar commitments under all noncancelable operating leases and certain residual value guarantees as of September 27, 2019 (in thousands): 2020 $ 101,061 2021 74,908 2022 56,765 2023 43,795 2024 36,215 2025-Thereafter 214,818 Total minimum rental obligations $ 527,562 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. On August 26, 2019, the Company announced that Eric J. Foss stepped down from his role as Chairman, President and Chief Executive Officer, effective as of August 25, 2019. The Company recognized $10.4 million of cash compensation related charges related to his separation from the Company, which are included in "Accrued payroll and related expenses" in the Consolidated Balance Sheets. These unpaid obligations are expected to be paid through fiscal 2021. During fiscal 2019, the Company was a defendant in two class action lawsuits alleging breach of contract, promissory estoppel, unjust enrichment and various state law claims for failure to pay employee annual incentive bonuses related to the 2018 fiscal year. In November 2019, the Company settled the lawsuits with the plaintiffs for approximately $21.0 million , which includes payments to the class members, attorneys' fees and other expenses. Of the $21.0 million settlement charge, $12.0 million was expensed in "Cost of services provided" and $9.0 million was expensed in "Selling and general corporate expenses" in the Consolidated Statements of Income during the fiscal year ended September 27, 2019 . |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Sep. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | QUARTERLY RESULTS (Unaudited): The following tables summarize the Company's unaudited quarterly results for fiscal 2019 and fiscal 2018 (in thousands, except per share amounts): Quarter Ended December 28, 2018 March 29, 2019 June 28, 2019 September 27, 2019 Revenue $ 4,265,349 $ 3,999,987 $ 4,010,761 $ 3,951,244 Cost of services provided 3,794,445 3,639,959 3,594,978 3,503,280 Net income (1) 250,676 29,310 83,064 85,414 Net income attributable to Aramark stockholders (1) 250,682 29,353 82,955 85,557 Earnings per share: Basic $ 1.02 $ 0.12 $ 0.34 $ 0.35 Diluted 0.99 0.12 0.33 0.34 Dividends declared per common share 0.110 0.110 0.110 0.110 Quarter Ended December 29, 2017 March 30, 2018 June 29, 2018 September 28, 2018 Revenue $ 3,965,118 $ 3,939,311 $ 3,971,606 $ 3,913,598 Cost of services provided (2) 3,522,230 3,563,009 3,526,293 3,386,380 Net income (3) 292,440 27,716 72,716 175,568 Net income attributable to Aramark stockholders (3) 292,284 27,569 72,577 175,455 Earnings per share: Basic $ 1.19 $ 0.11 $ 0.29 $ 0.71 Diluted 1.16 0.11 0.29 0.69 Dividends declared per common share 0.105 0.105 0.105 0.105 (1) Fiscal 2019 net income was impacted by the sale of HCT in the first quarter of fiscal 2019 (see Note 2). (2) Fiscal 2018 balances have been restated to reflect the impact of the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (see Note 1). (3) Fiscal 2018 net income was impacted by the passage of the "Tax Cuts and Jobs Act" (see Note 9). |
Business Segments
Business Segments | 12 Months Ended |
Sep. 27, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS: The Company reports its operating results in three reportable segments: FSS United States, FSS International and Uniform. Corporate includes general expenses and assets not specifically allocated to an individual segment and share-based compensation expense (see Note 11). In the Company's food and support services segments, approximately 78% of the global revenue is related to food services and 22% is related to facilities services. During fiscal 2019, the Company received proceeds of approximately $16.2 million relating to the recovery of the Company’s investment (possessory interest) at one of the National Park Service sites within the FSS United States segment. The Company recorded a gain related to the recovery of its investment, which is included in “Cost of services provided” in the Consolidated Statements of Income. Financial information by segment follows (in millions): Revenue (1) Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 FSS United States $ 9,898.6 $ 10,137.8 $ 9,748.0 FSS International 3,742.9 3,655.8 3,291.7 Uniform 2,585.8 1,996.0 1,564.7 $ 16,227.3 $ 15,789.6 $ 14,604.4 Operating Income (1)(2)(3) Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 FSS United States $ 716.8 $ 682.7 $ 596.6 FSS International 142.7 142.2 155.8 Uniform 191.3 181.4 182.3 1,050.8 1,006.3 934.7 Corporate (159.6 ) (187.9 ) (133.1 ) Operating Income 891.2 818.4 801.6 Interest and Other Financing Costs, net (335.0 ) (346.6 ) (280.9 ) Income Before Income Taxes $ 556.2 $ 471.8 $ 520.7 Depreciation and Amortization (1) Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 FSS United States $ 381.6 $ 405.0 $ 372.7 FSS International 69.4 64.8 55.3 Uniform 138.7 123.4 77.2 Corporate 2.9 3.0 3.0 $ 592.6 $ 596.2 $ 508.2 Capital Expenditures and Other (1) Fiscal Year Ended September 27, 2019 September 28, 2018* September 29, 2017 FSS United States $ 375.9 $ 494.3 $ 420.4 FSS International 69.4 84.1 66.1 Uniform 61.0 332.5 67.5 Corporate 0.1 1.2 1.0 $ 506.4 $ 912.1 $ 555.0 * Includes amounts acquired in business combinations Identifiable Assets (1) September 27, 2019 September 28, 2018 FSS United States $ 8,368.1 $ 8,482.8 FSS International 2,039.2 2,072.0 Uniform 3,118.7 2,991.7 Corporate 210.3 173.6 $ 13,736.3 $ 13,720.1 The following geographic data include revenue generated by subsidiaries within that geographic area and net property & equipment based on physical location (in millions): Revenue (1) Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 United States $ 12,070.0 $ 11,795.6 $ 11,098.0 Foreign 4,157.3 3,994.0 3,506.4 $ 16,227.3 $ 15,789.6 $ 14,604.4 Property and Equipment, net (1) September 27, 2019 September 28, 2018 United States $ 1,854.7 $ 1,065.9 Foreign 327.1 312.2 $ 2,181.8 $ 1,378.1 (1) The adoption of the new ASU related to revenue recognition impacted each of the financial information categories presented (see Note 7). All financial information categories in fiscal 2019 for the FSS United States segment were also impacted by the sale of HCT in the first quarter of fiscal 2019 (see Note 2). (2) Fiscal 2018 and 2017 balances have been restated to reflect the impact of the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (see Note 1). (3) During fiscal 2019, the Company incurred expenses of $74.9 million related to special recognition awards, retirement contributions and employee training costs as a result of tax savings from U.S. tax reform. The breakdown of these expenses by segment are as follows: FSS United States: $58.7 million; FSS International: $0.4 million; Uniform: $14.4 million; and Corporate: $1.4 million. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Financial Liabilities | 12 Months Ended |
Sep. 27, 2019 | |
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 September 27, 2019 and September 28, 2018 was $6,851.2 million and $7,303.1 million , respectively. The carrying value of the Company's debt at September 27, 2019 and September 28, 2018 was $6,682.2 million and $7,244.0 million |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements of Aramark and Subsidiaries | 12 Months Ended |
Sep. 27, 2019 | |
Condensed Financial Information 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) ASI 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, ASI, (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, are non-guarantors and 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 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 September 27, 2019 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 33,510 $ 40,544 $ 172,584 $ — $ 246,643 Receivables — 1,966 522,627 1,282,371 — 1,806,964 Inventories — 15,804 301,091 94,424 — 411,319 Prepayments and other current assets — 27,164 82,666 83,631 — 193,461 Total current assets 5 78,444 946,928 1,633,010 — 2,658,387 Property and Equipment, net — 43,329 1,784,410 354,023 — 2,181,762 Goodwill — 173,104 4,694,549 651,147 — 5,518,800 Investment in and Advances to Subsidiaries 3,320,042 6,649,119 — 717,228 (10,686,389 ) — Other Intangible Assets — 29,684 1,819,315 184,567 — 2,033,566 Other Assets — 20,382 979,350 346,076 (2,002 ) 1,343,806 $ 3,320,047 $ 6,994,062 $ 10,224,552 $ 3,886,051 $ (10,688,391 ) $ 13,736,321 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 6,256 $ 27,924 $ 35,748 $ — $ 69,928 Accounts payable — 127,640 507,903 363,974 — 999,517 Accrued expenses and other current liabilities — 241,523 1,030,074 364,168 88 1,635,853 Total current liabilities — 375,419 1,565,901 763,890 88 2,705,298 Long-term Borrowings — 6,090,487 82,394 439,358 — 6,612,239 Deferred Income Taxes and Other Noncurrent Liabilities — 380,453 569,409 138,960 — 1,088,822 Intercompany Payable — — 4,187,591 726,464 (4,914,055 ) — Redeemable Noncontrolling Interest — — 9,915 — — 9,915 Total Stockholders' Equity 3,320,047 147,703 3,809,342 1,817,379 (5,774,424 ) 3,320,047 $ 3,320,047 $ 6,994,062 $ 10,224,552 $ 3,886,051 $ (10,688,391 ) $ 13,736,321 CONDENSED CONSOLIDATING BALANCE SHEETS September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors 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 year ended September 27, 2019 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 1,062,655 $ 10,653,013 $ 4,511,673 $ — $ 16,227,341 Costs and Expenses: Cost of services provided — 981,661 9,362,232 4,188,769 — 14,532,662 Depreciation and amortization — 16,377 473,833 102,363 — 592,573 Selling and general corporate expenses — 162,963 176,714 27,579 — 367,256 Gain on sale of Healthcare Technologies — — (156,309 ) — — (156,309 ) Interest and other financing costs, net — 316,120 3,531 15,336 — 334,987 Expense allocations — (315,432 ) 274,501 40,931 — — — 1,161,689 10,134,502 4,374,978 — 15,671,169 Income (Loss) before Income Taxes — (99,034 ) 518,511 136,695 — 556,172 Provision (Benefit) for Income Taxes — (38,388 ) 109,144 36,950 — 107,706 Equity in Net Income of Subsidiaries 448,549 — — — (448,549 ) — Net income (loss) 448,549 (60,646 ) 409,367 99,745 (448,549 ) 448,466 Less: Net loss attributable to noncontrolling interest — — (83 ) — — (83 ) Net income (loss) attributable to Aramark stockholders 448,549 (60,646 ) 409,450 99,745 (448,549 ) 448,549 Other comprehensive income (loss), net of tax (125,742 ) (71,282 ) (553 ) (121,505 ) 193,340 (125,742 ) Comprehensive income (loss) attributable to Aramark stockholders $ 322,807 $ (131,928 ) $ 408,897 $ (21,760 ) $ (255,209 ) $ 322,807 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the year ended September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 1,027,573 $ 10,432,088 $ 4,329,972 $ — $ 15,789,633 Costs and Expenses: Cost of services provided — 848,739 9,132,991 4,016,181 — 13,997,911 Depreciation and amortization — 19,466 483,106 93,610 — 596,182 Selling and general corporate expenses — 195,093 158,064 23,972 — 377,129 Interest and other financing costs, net — 329,027 266 17,242 — 346,535 Expense allocations — (374,970 ) 353,628 21,342 — — — 1,017,355 10,128,055 4,172,347 — 15,317,757 Income before Income Taxes — 10,218 304,033 157,625 — 471,876 Provision (Benefit) for Income Taxes — (3,521 ) (143,452 ) 50,409 — (96,564 ) Equity in Net Income of Subsidiaries 567,885 — — — (567,885 ) — Net income 567,885 13,739 447,485 107,216 (567,885 ) 568,440 Less: Net income attributable to noncontrolling interest — — 555 — — 555 Net income attributable to Aramark stockholders 567,885 13,739 446,930 107,216 (567,885 ) 567,885 Other comprehensive income (loss), net of tax 32,537 43,686 3,178 (36,776 ) (10,088 ) 32,537 Comprehensive income attributable to Aramark stockholders $ 600,422 $ 57,425 $ 450,108 $ 70,440 $ (577,973 ) $ 600,422 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the year ended September 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 1,041,490 $ 9,708,157 $ 3,854,765 $ — $ 14,604,412 Costs and Expenses: Cost of services provided — 941,031 8,507,705 3,546,667 — 12,995,403 Depreciation and amortization — 17,502 416,979 73,731 — 508,212 Selling and general corporate expenses — 140,305 138,304 20,561 — 299,170 Interest and other financing costs, net — 273,405 (3,196 ) 10,776 — 280,985 Expense allocations — (348,042 ) 318,199 29,843 — — — 1,024,201 9,377,991 3,681,578 — 14,083,770 Income Before Income Taxes — 17,289 330,166 173,187 — 520,642 Provision for Income Taxes — 5,139 98,144 43,172 — 146,455 Equity in Net Income of Subsidiaries 373,923 — — — (373,923 ) — Net income 373,923 12,150 232,022 130,015 (373,923 ) 374,187 Less: Net income attributable to noncontrolling interest — — 264 — — 264 Net income attributable to Aramark stockholders 373,923 12,150 231,758 130,015 (373,923 ) 373,923 Other comprehensive income, net of tax 57,023 35,667 431 80,204 (116,302 ) 57,023 Comprehensive income attributable to Aramark stockholders $ 430,946 $ 47,817 $ 232,189 $ 210,219 $ (490,225 ) $ 430,946 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the year ended September 27, 2019 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ (47,231 ) $ 757,832 $ 290,539 $ (16,913 ) $ 984,227 Cash flows from investing activities: Purchases of property and equipment and other — (12,160 ) (414,017 ) (76,913 ) — (503,090 ) Disposals of property and equipment — 6,644 6,665 4,562 — 17,871 Proceeds from divestiture — — 293,711 — — 293,711 Acquisitions of businesses, net of cash acquired — — (23,028 ) (21,835 ) — (44,863 ) Proceeds from government agencies related to property and equipment — — 23,025 — — 23,025 Other investing activities — (356 ) 3,677 504 — 3,825 Net cash used in investing activities — (5,872 ) (109,967 ) (93,682 ) — (209,521 ) Cash flows from financing activities: Proceeds from long-term borrowings — — — 77,630 — 77,630 Payments of long-term borrowings — (545,809 ) (34,431 ) (74,320 ) — (654,560 ) Payments of dividends — (108,439 ) — — — (108,439 ) Proceeds from issuance of common stock — 39,087 — — — 39,087 Repurchase of common stock — (50,000 ) — — — (50,000 ) Other financing activities — (36,305 ) (2,192 ) (113 ) — (38,610 ) Change in intercompany, net — 737,363 (600,542 ) (153,734 ) 16,913 — Net cash provided by (used in) financing activities — 35,897 (637,165 ) (150,537 ) 16,913 (734,892 ) Effect of foreign exchange rates on cash and cash equivalents — — — (8,196 ) — (8,196 ) Decrease (increase) in cash and cash equivalents — (17,206 ) 10,700 38,124 — 31,618 Cash and cash equivalents, beginning of period 5 50,716 29,844 134,460 — 215,025 Cash and cash equivalents, end of period $ 5 $ 33,510 $ 40,544 $ 172,584 $ — $ 246,643 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the year ended September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Net cash provided by operating activities $ — $ 111,541 $ 690,218 $ 315,703 $ (65,587 ) $ 1,051,875 Cash flows from investing activities: Purchases of property and equipment other — (13,133 ) (532,923 ) (82,548 ) — (628,604 ) Disposals of property and equipment — 2,252 4,301 3,938 — 10,491 Acquisitions of businesses, net of cash acquired — (2,381,800 ) 244,581 (103,065 ) — (2,240,284 ) Other investing activities — (3,095 ) 328 (4,112 ) — (6,879 ) Net cash used in investing activities — (2,395,776 ) (283,713 ) (185,787 ) — (2,865,276 ) Cash flows from financing activities: Proceeds from long-term borrowings — 3,012,072 — 165,241 — 3,177,313 Payments of long-term borrowings — (833,854 ) (28,142 ) (111,693 ) — (973,689 ) Net change in funding under the Receivables Facility — — — (254,200 ) — (254,200 ) Payments of dividends — (103,115 ) — — — (103,115 ) Proceeds from issuance of common stock — 21,507 — — — 21,507 Repurchase of common stock — (24,410 ) — — — (24,410 ) Other financing activities — (45,905 ) (2,958 ) (390 ) — (49,253 ) Change in intercompany, net — 197,144 (383,074 ) 120,343 65,587 — Net cash provided by (used in) financing activities — 2,223,439 (414,174 ) (80,699 ) 65,587 1,794,153 Effect of foreign exchange rates on cash and cash equivalents — — — (4,524 ) — (4,524 ) (Decrease) increase in cash and cash equivalents — (60,796 ) (7,669 ) 44,693 — (23,772 ) Cash and cash equivalents, beginning of period 5 111,512 37,513 89,767 — 238,797 Cash and cash equivalents, end of period $ 5 $ 50,716 $ 29,844 $ 134,460 $ — $ 215,025 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the year ended September 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Net cash provided by operating activities $ — $ 261,282 $ 779,801 $ 200,018 $ (188,275 ) $ 1,052,826 Cash flows from investing activities: Purchases of property and equipment and other — (20,939 ) (443,262 ) (88,528 ) — (552,729 ) Disposals of property and equipment — 494 14,780 3,632 — 18,906 Acquisitions of businesses, net of cash acquired — — (37,130 ) (104,992 ) — (142,122 ) Other investing activities — (69,401 ) 36,946 29,916 — (2,539 ) Net cash used in investing activities — (89,846 ) (428,666 ) (159,972 ) — (678,484 ) Cash flows from financing activities: Proceeds from long-term borrowings — 3,451,164 — 400,253 — 3,851,417 Payments of long-term borrowings — (3,572,268 ) (19,851 ) (319,873 ) — (3,911,992 ) Net change in funding under the Receivables Facility — — — (13,800 ) — (13,800 ) Payments of dividends — (100,813 ) — — — (100,813 ) Proceeds from issuance of common stock — 28,779 — — — 28,779 Repurchase of common stock — (100,000 ) — — — (100,000 ) Other financing activities — (69,172 ) (2,973 ) 29,868 — (42,277 ) Change in intercompany, net — 254,536 (322,142 ) (120,669 ) 188,275 — Net cash used in financing activities — (107,774 ) (344,966 ) (24,221 ) 188,275 (288,686 ) Effect of foreign exchange rates on cash and cash equivalents — — — 561 — 561 Increase in cash and cash equivalents — 63,662 6,169 16,386 — 86,217 Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 111,512 $ 37,513 $ 89,767 $ — $ 238,797 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Sep. 27, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Rollforward of the valuation allowance is as follows: September 27, 2019 September 28, 2018 Balance, beginning of year $ (29,023 ) $ (11,513 ) Additions (1) (2,330 ) (21,101 ) Subtractions (2) 13,821 3,591 Balance, end of year $ (17,532 ) $ (29,023 ) (1) The additions in fiscal 2019 were mainly driven by losses in certain foreign subsidiaries. The additions in fiscal 2018 were mainly driven by the Tax Cuts and Jobs Act impacting the ability to utilize FTC carryforwards going forward, as well as the inability to use foreign NOL carryforwards. (2) Valuation allowances against FTC carryforwards were released during fiscal 2019 as a result of Treasury Regulations. During fiscal 2018, tax planning resulted in taxable income in separate Company states that had historical losses. ARAMARK AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE FISCAL YEARS ENDED SEPTEMBER 27, 2019 , SEPTEMBER 28, 2018 AND SEPTEMBER 29, 2017 Additions Reductions Balance, Beginning of Period Charged to Income Deductions from Reserves (1) Balance, End of Period Description Fiscal Year 2019 Reserve for doubtful accounts, advances & current notes receivable $ 52,682 $ 21,821 $ 24,937 $ 49,566 Fiscal Year 2018 Reserve for doubtful accounts, advances & current notes receivable $ 53,416 $ 22,009 $ 22,743 $ 52,682 Fiscal Year 2017 Reserve for doubtful accounts, advances & current notes receivable $ 48,058 $ 18,141 $ 12,783 $ 53,416 (1) Amounts determined not to be collectible and charged against the reserve and translation. |
Nature of Business, Basis of _2
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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: |
Fiscal Year | Fiscal Year The Company's fiscal year is the fifty-two or fifty-three week period which ends on the Friday nearest September 30th. The fiscal years ended September 27, 2019 , September 28, 2018 and September 29, 2017 were each fifty-two week periods. |
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 Overnight Index Swap Rate based on the Secured Overnight Financing 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. The Company early adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the consolidated financial statements, as the Company's existing interest rate hedges use LIBOR as the benchmark interest rate. The 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 was effective for the Company in the first quarter of fiscal 2019. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the 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 was effective for the Company in the first quarter of fiscal 2019. The Company adopted this standard in the first quarter of fiscal 2019, which did not have a material impact on the 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 was effective for the Company in the first quarter of fiscal 2019. 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 $7.7 million and $6.4 million for the fiscal years ended September 28, 2018 and September 29, 2017 , respectively, were reclassified from "Cost of services provided" to "Interest and Other Financing Costs, net" on the 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 was effective for the Company in the first quarter of fiscal 2019. The Company adopted the guidance in the first quarter of fiscal 2019, which did not have an impact on the consolidated financial statements. In January 2017, the FASB issued an ASU to clarify the definition of a business. The guidance was effective for the Company in the first quarter of fiscal 2019. 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 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 was 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 on the Company's consolidated financial statements. In May 2014, the FASB issued an ASU on revenue from contracts with customers which superseded 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 (the first day of fiscal 2019). 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 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 May 2019, the FASB issued an ASU which provides the option to irrevocably elect to apply the fair value measurement option on an instrument-by-instrument basis for certain financial instruments within the scope of the credit losses on financial instruments standard. The guidance is effective for the Company in the first quarter of fiscal 2021 when the credit losses on financial instruments standard will be adopted and early adoption is permitted. The Company is currently evaluating the impact of the pronouncement. In April 2019, the FASB issued an ASU which provides clarification, error corrections and improvements to existing guidance related to the credit losses on financial instruments ASU issued in June 2016, the derivatives and hedging ASU issued in August 2017 and the financial instruments ASU issued in January 2016. The guidance related to the credit losses on financial instruments ASU is effective for the Company in the first quarter of 2021 when the related ASU is adopted, while the guidance related to the derivatives and hedging and the financial instruments ASUs are effective for the Company in the first quarter of fiscal 2020 and the first quarter of 2021, respectively. Early adoption is permitted. The Company will adopt the guidance related to derivatives and hedging in the first quarter of fiscal 2020 and does not expect a material impact on the consolidated financial statements. The Company is currently evaluating the impact of the remaining amendments of the pronouncement. In March 2019, the FASB issued an ASU which provides clarification regarding three issues related to the lease recognition standard. The guidance is effective for the Company in the first quarter of fiscal 2020 when the lease recognition standard will be adopted. See below for further discussion regarding the impact of this standard. 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. See below for further discussion regarding the impact of this standard. In July 2018, the FASB issued an ASU which clarifies, corrects errors in or makes minor improvements to the Accounting Standards 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. The Company will adopt the remaining amendments of the pronouncement in the first quarter of fiscal 2020 and does not expect a material impact on the consolidated financial statements. 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. The Company does not expect this pronouncement to have a material impact on the Company's consolidated financial statements. 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. 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 the first quarter of fiscal 2020 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. Recognition of expense on the Consolidated Statements of Income will continue in a manner similar to current guidance. The Company will adopt this guidance using the modified retrospective approach with an adjustment to recognize lease liabilities offset by a right-of-use asset. This adjustment will be recorded at the beginning of the period of adoption in the first quarter of fiscal 2020; therefore, the Company will recognize and measure leases without revising comparative period information or disclosure. For existing leases as of the effective date, the Company will elect the package of practical expedients available at transition to not reassess historical lease determinations, lease classifications and initial direct costs. Additionally, the Company will not elect the use of hindsight for determining the reasonably certain lease term. The Company will elect the short-term lease recognition exemption whereby lease-related assets and liabilities will not be recognized for arrangements with terms less than one year. The Company has substantially completed its review of lease arrangements in order to determine the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures. The Company has also implemented a new lease system in connection with the adoption of this standard. The majority of the Company's lease spend relates to certain real estate, with the remaining lease spend primarily related to vehicles and equipment. Based on its assessment, adoption of the standard is expected to result in the recognition of lease liabilities and associated right of use assets of approximately $410.0 million to $440.0 million and approximately $540.0 million and $570.0 million , respectively. The expected right of use assets include $167.0 million of long-term prepaid rent associated with certain leases at client locations. The Company does not expect adoption of the standard to significantly impact its Consolidated Statements of Income or Cash Flows. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when its performance obligation is satisfied 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. In each of the Company's operating segments, revenue is recognized over time in the period in which services are provided pursuant to the terms of the Company's contractual relationships with its clients. The Company generally records revenue on food and support services contracts (both profit and loss contracts and client interest contracts) on a gross basis as the Company is the primary obligor and service provider. See Note 7 for additional information on revenue recognition. Certain profit and loss contracts include payments to the client, typically calculated as a fixed or variable percentage of various categories of revenue and income. In some cases these contracts require minimum guaranteed payments that are contingent on certain future events. These expenses are currently recorded in “Cost of services provided.” Revenue from client interest contracts is generally comprised of amounts billed to clients for food, labor and other costs that the Company incurs, controls and pays for. Revenue from these contracts also includes any associated management fees, client subsidies or incentive fees based upon the Company's performance under the contract. Revenue from direct marketing activities is recognized at a point in time upon shipment. All revenue related taxes are presented on a net basis. The timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an accounts receivable balance when revenue is recognized prior to or at the time of invoicing the customer. A majority of the Company’s receivables balances are based on contracts with customers. The Company estimates and reserves for its bad debt exposure based on its experience with past due accounts and collectability, the aging of accounts receivable and its analysis of customer data. Bad debt expense is classified within “Cost of services provided.” Vendor Consideration Consideration received from vendors includes rebates, allowances and volume discounts and are accounted for as an adjustment to the cost of the vendors' products or services and are reported as a reduction of "Cost of services provided," "Inventory," or "Property and equipment, net." Income from rebates, allowances and volume discounts is recognized based on actual purchases in the fiscal period relative to total actual purchases to be made for the contractual rebate period agreed to with the vendor. Rebates, allowances and volume discounts related to “Inventory” held at the balance sheet date are deducted from the carrying value of these inventories. Rebates, allowances and volume discounts related to "Property and equipment, net" are deducted from the costs capitalized. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. |
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 (loss) (net of tax). |
Currency Translation | Currency Translation Gains and losses resulting from the translation of financial statements of non-U.S. subsidiaries are reflected as a component of accumulated other comprehensive income (loss) in stockholders' equity. During both fiscal 2019 and 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. The impact of the remeasurements was a foreign currency transaction loss of approximately $ 4.9 million and $3.8 million during fiscal 2019 and 2018, respectively, to the Consolidated Statements of Income. The impact of foreign currency transaction gains and losses exclusive of Argentina's operations included in the Company's operating results for fiscal 2019 , fiscal 2018 and fiscal 2017 |
Current Assets | Current Assets The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. In fiscal 2019, the Company began insuring portions of its general liability, automobile liability and workers’ compensation risks through a wholly owned captive insurance subsidiary (the "Captive"), to enhance its risk financing strategies. The Captive is subject to regulation in its jurisdiction of domicile, including regulations relating to levels of liquidity and solvency as such concepts are defined by the regulator. The Captive was in compliance with these regulations as of year-end. These regulations may have the effect of limiting the Company's ability to access certain cash and cash equivalents held by the Captive for uses other than for the payment of its general liability, automobile liability and workers’ compensation claims and related Captive costs. As of September 27, 2019 , cash and cash equivalents at the Captive was $50.4 million . The Company is self-insured for a limited portion of the risk retained under its general liability, automobile liability and workers’ compensation insurance arrangements. Self-insurance reserves are recorded based on actuarial analyses. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated over their estimated useful lives on a straight-line basis. Gains and losses on dispositions are included in operating results. Maintenance and repairs are charged to current operations and replacements and significant improvements that extend the useful life of the asset are capitalized. The estimated useful lives for the major categories of property and equipment are 10 to 40 years for buildings and improvements and 3 to 10 years |
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 |
Nature of Business, Basis of _3
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Comprehensive Income | The summary of the components of comprehensive income is as follows (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income $ 448,466 $ 568,440 $ 374,187 Pension plan adjustments (29,137 ) 6,543 (22,594 ) 29,650 (9,003 ) 20,647 22,548 (2,556 ) 19,992 Foreign currency translation adjustments (34,099 ) (209 ) (34,308 ) (31,003 ) (250 ) (31,253 ) 5,903 — 5,903 Cash flow hedges: Unrealized gains (losses) arising during the period (84,392 ) 21,942 (62,450 ) 55,445 (16,134 ) 39,311 31,884 (12,435 ) 19,449 Reclassification adjustments (6,484 ) 1,686 (4,798 ) 5,185 (1,510 ) 3,675 16,606 (6,476 ) 10,130 Share of equity investee's comprehensive income (loss) (1,592 ) — (1,592 ) 157 — 157 2,383 (834 ) 1,549 Other comprehensive income (loss) (155,704 ) 29,962 (125,742 ) 59,434 (26,897 ) 32,537 79,324 (22,301 ) 57,023 Comprehensive income 322,724 600,977 431,210 Less: Net income (loss) attributable to noncontrolling interest (83 ) 555 264 Comprehensive income attributable to Aramark stockholders $ 322,807 $ 600,422 $ 430,946 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): September 27, 2019 September 28, 2018 Pension plan adjustments $ (47,222 ) $ (24,628 ) Foreign currency translation adjustments (128,119 ) (93,811 ) Cash flow hedges (31,056 ) 36,192 Share of equity investee's accumulated other comprehensive loss (10,568 ) (8,976 ) $ (216,965 ) $ (91,223 ) |
Schedule of Components of Inventories | The components of inventories are as follows: September 27, 2019 September 28, 2018 Food 54.3 % 31.6 % Career apparel and linens (1) 40.5 % 65.7 % Parts, supplies and novelties 5.2 % 2.7 % 100.0 % 100.0 % (1) Decrease during fiscal 2019 due to the Company's adoption of Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers (see Note 7). |
Schedule of Other Assets | Other Assets The following table presents details of "Other Assets" as presented in the Consolidated Balance Sheets (in thousands): September 27, 2019 September 28, 2018 Client contract investments (1) $ — $ 1,034,476 Long-term prepaid rent (1) 166,931 — Cost to fulfill - Client (1) 109,401 — Cost to fulfill - Rental merchandise in-service (2) 356,853 — Long-term receivables 27,574 90,068 Miscellaneous investments (3) 264,452 239,547 Computer software costs, net (4) 170,510 152,188 Interest rate swap agreements — 54,708 Employee sales commissions (5) 111,001 — Other (6) 137,084 122,184 $ 1,343,806 $ 1,693,171 (1) Prior to the Company's adoption of ASC 606, Revenue from Contracts with Customers , client contract investments generally represented a cash payment provided by the Company to help finance improvement or renovation at the facility from which the Company operated. These amounts were amortized over the contract period. If the contract was terminated prior to its maturity date, the Company was reimbursed for the unamortized client contract investment amounts. Amortization expense was $183.6 million and $159.6 million during fiscal 2018 and fiscal 2017, respectively. Subsequent to adoption of ASC 606, these balances were reclassified to either leasehold improvements in "Property and Equipment, net" or to long-term prepaid rent or costs to fulfill - client in "Other Assets" and continue to be expensed over the contract life (see Note 7). (2) Due to the Company's adoption of ASC 606, costs to fulfill contracts related to personalized work apparel, linens and other rental items in service, previously capitalized within "Inventories" are now capitalized within "Other Assets." These in-service rental items 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. (3) Miscellaneous investments represent investments in 50% or less owned entities, including the Company's 50% ownership in AIM Services Co., Ltd., a Japanese food and support services company (approximately $180.5 million and $155.1 million at September 27, 2019 and September 28, 2018, respectively). During fiscal 2019, the Company recognized an impairment of $7.0 million in "Cost of services provided" related to an equity investment. (4) Computer software costs represent capitalized costs incurred to purchase or develop software for internal use, and are amortized over the estimated useful life of the software, generally a period of three to ten years. (5) Due to the Company's adoption of ASC 606, costs to obtain contracts related to employee sales commissions are now capitalized within "Other Assets," which were previously expensed to "Cost of services provided" at contract inception (see Note 7). (6) Other consist primarily of noncurrent deferred tax assets, pension assets and deferred financing costs on certain revolving credit facilities. |
Schedule of Accrued Liabilities | Other Accrued Expenses and Liabilities The following table presents details of "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets (in thousands): September 27, 2019 September 28, 2018 Deferred income (1) $ 345,840 $ 299,089 Accrued client expenses 105,636 98,282 Accrued taxes 61,816 96,855 Accrued insurance and interest 192,695 164,890 Other 420,249 358,917 $ 1,126,236 $ 1,018,033 (1) Includes consideration received in advance from customers prior to the service being performed ($319.0 million) or from vendors prior to the goods being consumed ($26.8 million). |
Schedule of Deferred Income Taxes and Other Noncurrent Liabilities | Deferred Income Taxes and Other Noncurrent Liabilities The following table presents details of "Deferred Income Taxes and Other Noncurrent Liabilities" as presented in the Consolidated Balance Sheets (in thousands): September 27, 2019 September 28, 2018 Deferred income tax payable $ 519,904 $ 503,429 Deferred compensation 212,090 226,558 Pension-related liabilities 21,367 28,478 Interest rate swap agreements 43,112 — Other noncurrent liabilities 292,349 218,750 $ 1,088,822 $ 977,215 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information Fiscal Year Ended (dollars in millions) September 27, 2019 September 28, 2018 September 29, 2017 Interest paid $ 306.2 $ 307.1 $ 201.7 Income taxes paid (refunded) (1) 139.3 (1.1 ) 126.3 (1) During fiscal 2018, the Company was in a net refund position, primarily due to the impact of the Tax Cuts and Jobs Act (see Note 9). |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
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 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 $ 157,614 Noncurrent assets 1,345,532 Total assets $ 1,503,146 Current liabilities $ 111,087 Noncurrent liabilities 5,681 Total liabilities $ 116,768 |
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 Value (in millions) Weighted-Average Estimated Useful Life (in years) Customer relationship assets $ 297.0 15 Trade names 24.0 3 to indefinite Total intangible assets $ 321.0 The following table identifies the Company’s allocations of purchase price to the intangible assets acquired by category: Estimated Fair Value (in millions) Weighted-Average Estimated Useful Life (in years) Customer relationship assets $ 567.0 15 Trade name 222.0 indefinite Total intangible assets $ 789.0 |
Business Acquisition, Pro Forma Information | The following table reflects the unaudited pro forma combined results of operations for the fiscal years ended September 28, 2018 and September 29, 2017 for the Company, assuming the closing of both acquisitions occurred on October 1, 2016: Fiscal Year Ended Unaudited (in thousands) September 28, 2018 September 29, 2017 Total revenue $ 16,014,463 $ 15,378,832 Net income 624,334 328,932 |
Severance (Tables)
Severance (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of the Accrual Related to the Unpaid Obligations for Severance and Related Costs | The following table summarizes the unpaid obligations for severance and related costs as of September 27, 2019 , which are included in "Accrued payroll and related expenses" in the Consolidated Balance Sheets. These unpaid obligations are expected to be paid through fiscal 2020 . (in millions) September 28, 2018 Net Charges Payments and Other September 27, 2019 Severance and Related Costs Accrual $ 16.6 18.7 (23.4 ) $ 11.9 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Assets by Segment | Changes in total goodwill during fiscal 2019 is as follows (in thousands): Segment September 28, 2018 Acquisitions and Divestitures Translation and Other September 27, 2019 FSS United States (1) $ 4,028,454 $ (81,823 ) $ 2,587 $ 3,949,218 FSS International 626,379 16,135 (34,046 ) 608,468 Uniform 955,735 3,981 1,398 961,114 $ 5,610,568 $ (61,707 ) $ (30,061 ) $ 5,518,800 (1) Includes the removal of approximately $87.0 million of goodwill related to the divestiture of HCT during the first quarter of fiscal 2019 (see Note 2). |
Schedule of other intangible assets | Other intangible assets consist of (in thousands): September 27, 2019 September 28, 2018 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 2,183,492 $ (1,193,525 ) $ 989,967 $ 2,244,215 $ (1,156,811 ) $ 1,087,404 Trade names 1,047,959 (4,360 ) 1,043,599 1,050,825 (1,385 ) 1,049,440 $ 3,231,451 $ (1,197,885 ) $ 2,033,566 $ 3,295,040 $ (1,158,196 ) $ 2,136,844 |
Schedule of expected amortization expense | Based on the recorded balances at September 27, 2019 , total estimated amortization of all acquisition-related intangible assets for fiscal years 2020 through 2024 follows (in thousands): 2020 $ 113,136 2021 105,929 2022 85,709 2023 78,843 2024 78,464 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | Long-term borrowings, net, are summarized in the following table (in thousands): September 27, 2019 September 28, 2018 Senior secured revolving credit facility, due October 2023 $ 51,410 $ 77,000 Senior secured term loan facility, due October 2023 507,887 538,674 Senior secured term loan facility, due March 2024 829,344 1,325,923 Senior secured term loan facility, due March 2025 1,658,026 1,656,919 5.125% senior notes, due January 2024 902,351 902,908 5.000% senior notes, due April 2025 592,087 590,884 3.125% senior notes, due April 2025 (1) 352,363 373,240 4.750% senior notes, due June 2026 494,731 494,082 5.000% senior notes, due February 2028 1,137,625 1,136,472 Capital leases 148,754 143,388 Other 7,589 4,494 6,682,167 7,243,984 Less—current portion (69,928 ) (30,907 ) $ 6,612,239 $ 7,213,077 (1) This is a Euro denominated borrowing. See the disclosure below in the Senior Notes section for further information. |
Schedule of Maturities of Long-term Debt | At September 27, 2019 , annual maturities on long-term borrowings maturing in the next five fiscal years and thereafter (excluding the $48.3 million reduction to long-term borrowings from debt issuance costs and the increase of $10.0 million from the premium on the 2024 Notes) are as follows (in thousands): 2020 $ 69,928 2021 69,936 2022 72,695 2023 93,736 2024 2,106,525 Thereafter 4,307,650 |
Interest and Other Financing Costs Net | The components of interest and other financing costs, net, are summarized as follows (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 (1) September 29, 2017 (1) Interest expense $ 352,812 $ 353,048 $ 285,995 Interest income (28,985 ) (16,964 ) (12,372 ) Other financing costs 11,160 10,451 7,362 Total $ 334,987 $ 346,535 $ 280,985 (1) Fiscal 2018 and 2017 balances have been restated to reflect the impact of the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (see Note 1). |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
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): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Interest rate swap agreements $ (84,392 ) $ 55,445 $ 31,884 |
Schedule of Derivative Instruments, Balance Sheet Presentation | The following table summarizes the location and fair value, using Level 2 inputs (see Note 16 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments in the Consolidated Balance Sheets (in thousands): Balance Sheet Location September 27, 2019 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 — 54,708 Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ 64 $ 209 Gasoline and diesel fuel agreements Prepayments and other current assets — 3,623 $ 64 $ 59,999 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Other Noncurrent Liabilities $ 43,112 $ — Not designated as hedging instruments: Gasoline and diesel fuel agreements Accounts Payable $ 462 $ — $ 43,574 $ — |
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 Consolidated Statements of Income (in thousands): Fiscal Year Ended Income Statement Location September 27, 2019 September 28, 2018 September 29, 2017 Designated as hedging instruments: Interest rate swap agreements Interest and Other Financing Costs, net $ (6,484 ) $ 5,185 $ 16,606 Not designated as hedging instruments: Gasoline and diesel fuel agreements Costs of services provided / Selling and general corporate expenses $ 6,168 $ (7,360 ) $ (1,277 ) Foreign currency forward exchange contracts Interest and Other Financing Costs, net 145 (67 ) (886 ) $ 6,313 $ (7,427 ) $ (2,163 ) $ (171 ) $ (2,242 ) $ 14,443 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table compares the reported Consolidated Balance Sheet as of September 27, 2019 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): September 27, 2019 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 ASSETS Current Assets: Cash and cash equivalents $ 246,643 $ — $ 246,643 Receivables, net 1,806,964 — 1,806,964 Inventories 411,319 356,853 768,172 Prepayments and other current assets 193,461 — 193,461 Total current assets 2,658,387 356,853 3,015,240 Property and Equipment, net 2,181,762 (785,360 ) 1,396,402 Goodwill 5,518,800 — 5,518,800 Other Intangible Assets 2,033,566 — 2,033,566 Other Assets 1,343,806 307,419 1,651,225 $ 13,736,321 $ (121,088 ) $ 13,615,233 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ 69,928 $ — $ 69,928 Accounts payable 999,517 — 999,517 Accrued expenses and other current liabilities 1,635,853 (26,665 ) 1,609,188 Total current liabilities 2,705,298 (26,665 ) 2,678,633 Long-Term Borrowings 6,612,239 — 6,612,239 Deferred Income Taxes and Other Noncurrent Liabilities 1,088,822 (25,525 ) 1,063,297 Redeemable Noncontrolling Interest 9,915 — 9,915 Stockholders' Equity: Common stock 2,829 — 2,829 Capital surplus 3,236,450 — 3,236,450 Retained earnings 1,107,029 (68,898 ) 1,038,131 Accumulated other comprehensive loss (216,965 ) — (216,965 ) Treasury stock (809,296 ) — (809,296 ) Total stockholders' equity 3,320,047 (68,898 ) 3,251,149 $ 13,736,321 $ (121,088 ) $ 13,615,233 The following table compares the reported Consolidated Statements of Income for the fiscal year ended September 27, 2019 , to the balances had the previous revenue accounting guidance remained in effect (in thousands): Fiscal year ended September 27, 2019 As Reported Adoption adjustments of ASC 606 Balances without adoption of ASC 606 Revenue $ 16,227,341 $ (317,497 ) $ 15,909,844 Costs and Expenses: Cost of services provided 14,532,662 (322,411 ) 14,210,251 Depreciation and amortization 592,573 18,581 611,154 Selling and general corporate expenses 367,256 — 367,256 Gain on sale of Healthcare Technologies (156,309 ) — (156,309 ) 15,336,182 (303,830 ) 15,032,352 Operating income 891,159 (13,667 ) 877,492 Interest and Other Financing Costs, net 334,987 — 334,987 Income Before Income Taxes 556,172 (13,667 ) 542,505 Provision for Income Taxes 107,706 (3,554 ) 104,152 Net income 448,466 (10,113 ) 438,353 Less: Net loss attributable to noncontrolling interest (83 ) — (83 ) Net income attributable to Aramark stockholders $ 448,549 $ (10,113 ) $ 438,436 |
Disaggregation of Revenue | The following table presents revenue disaggregated by revenue source (in millions): Fiscal Year Ended September 27, 2019 FSS United States: Business & Industry $ 1,587.0 Education 3,228.8 Healthcare 933.5 Sports, Leisure & Corrections 2,557.5 Facilities & Other 1,591.8 Total FSS United States $ 9,898.6 FSS International: Europe 2,044.4 Rest of World 1,698.5 Total FSS International $ 3,742.9 Uniform $ 2,585.8 Total Revenue $ 16,227.3 |
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, September 27, 2019 Deferred income 281.5 1,364.3 (1,326.8 ) 319.0 |
Employee Pension and Profit S_2
Employee Pension and Profit Sharing Plans - (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The following table sets forth the components of net periodic pension cost for the Company's single-employer defined benefit pension plans for fiscal 2019 , fiscal 2018 and fiscal 2017 (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Service cost $ 6,391 $ 7,121 $ 8,834 Interest cost 11,287 10,579 8,398 Expected return on plan assets (22,970 ) (22,864 ) (18,350 ) Settlements and curtailments 283 3,312 — Amortization of prior service cost 104 116 122 Recognized net loss 1,094 1,646 3,400 Net periodic pension cost (income) $ (3,811 ) $ (90 ) $ 2,404 |
Schedule of Defined Benefit Plans Disclosures | The following table sets forth changes in the projected benefit obligation and the fair value of plan assets for these plans (in thousands): Change in benefit obligation: September 27, 2019 September 28, 2018 Benefit obligation, beginning $ 366,426 $ 333,672 Impact of AmeriPride acquisition — 79,605 Foreign currency translation (13,097 ) (11,312 ) Service cost 6,391 7,121 Interest cost 11,287 10,579 Employee contributions 2,249 2,571 Actuarial loss (gain) 49,707 (10,869 ) Benefits paid (16,681 ) (16,862 ) Settlements and curtailments (1) (5,075 ) (22,662 ) Change in control payment — (5,417 ) Benefit obligation, ending $ 401,207 $ 366,426 Change in plan assets: Fair value of plan assets, beginning $ 409,826 $ 341,538 Impact of AmeriPride acquisition — 73,273 Foreign currency translation (14,360 ) (12,359 ) Employer contributions 10,520 13,988 Employee contributions 2,249 2,571 Actual return on plan assets 39,280 23,971 Benefits paid (16,681 ) (16,862 ) Settlements (1) (4,867 ) (10,877 ) Change in control payment — (5,417 ) Fair value of plan assets, end 425,967 409,826 Funded Status at end of year $ 24,760 $ 43,400 (1) Fiscal 2019 includes the impact of closing two of the AmeriPride plans. Fiscal 2018 includes the impact of the Canadian pension plan freeze and the UK pension plan settlement resulting from the transfer of members out of the plan. |
Schedule of Amounts Recognized in Balance Sheet Including Accumulated Other Comprehensive Income | Amounts recognized in the Consolidated Balance Sheets consist of the following (in thousands): September 27, 2019 September 28, 2018 Noncurrent benefit asset (included in Other Assets) $ 35,459 $ 59,481 Noncurrent benefit liability (included in Other Noncurrent Liabilities) (10,699 ) (16,081 ) Net actuarial loss (included in Accumulated other comprehensive loss before taxes) 77,204 48,067 |
Schedule of Assumptions Used | The following weighted average assumptions were used to determine pension expense of the respective fiscal years: September 27, 2019 September 28, 2018 Discount rate 3.3 % 3.2 % Rate of compensation increase 2.1 % 2.0 % Long-term rate of return on assets 5.7 % 5.8 % The following weighted average assumptions were used to determine the funded status of the respective fiscal years: September 27, 2019 September 28, 2018 Discount rate 2.5 % 3.3 % Rate of compensation increase 2.1 % 2.1 % |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table sets forth information for the Company's single-employer pension plans with an accumulated benefit obligation in excess of plan assets as of September 27, 2019 and September 28, 2018 (in thousands): September 27, 2019 September 28, 2018 Projected benefit obligation $ 10,699 $ 16,081 Accumulated benefit obligation 10,506 15,935 |
Schedule of Allocation of Plan Assets | The fair value of plan assets for the Company's defined benefit pension plans as of September 27, 2019 and September 28, 2018 is as follows (see Note 16 for a description of the fair value levels) (in thousands): September 27, 2019 Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Cash and cash equivalents and other $ 19,396 $ 19,396 $ — $ — Equity securities: Investment trusts 4,677 4,677 — — Investment funds: Equity funds 72,074 — 72,074 — Fixed income funds 319,395 — 319,395 — Real estate 10,425 — — 10,425 Total $ 425,967 $ 24,073 $ 391,469 $ 10,425 September 28, 2018 Quoted prices in active markets Level 1 Significant other observable inputs Level 2 Significant unobservable inputs Level 3 Cash and cash equivalents and other $ 20,568 $ 20,568 $ — $ — Equity securities: Investment trusts 11,689 $ 11,689 — — Investment funds: Equity funds 220,853 — 220,853 — Fixed income funds 146,271 — 146,271 — Real estate 10,445 — — 10,445 Total $ 409,826 $ 32,257 $ 367,124 $ 10,445 |
Schedule of Expected Benefit Payments | The following table sets forth the benefits expected to be paid in the next five fiscal years and in aggregate for the five fiscal years thereafter by the Company's defined benefit pension plans (in thousands): Fiscal 2020 $ 13,601 Fiscal 2021 14,063 Fiscal 2022 14,448 Fiscal 2023 14,819 Fiscal 2024 15,121 Fiscal 2025 – 2029 81,559 |
Schedule of Multiemployer Plans | There have been no significant changes that affect the comparability of fiscal 2019 , fiscal 2018 and fiscal 2017 contributions. Pension Fund EIN/Pension Plan Number Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions by the Company (in thousands) Range of Expiration Dates of CBAs 2019 2018 2019 2018 2017 Surcharge Imposed National Retirement Fund 13-6130178/ 001 Critical Critical Implemented $ 4,130 $ 4,147 $ 7,541 No 3/1/2019 - 4/1/2022 UNITE HERE Retirement Fund (1) 82-0994119/ 001 Critical Critical Implemented 4,531 3,686 N/A No 6/30/2019 - 6/30/2023 Local 1102 Retirement Trust 13-1847329/ 001 Endangered Endangered Implemented 110 1,206 397 No 10/31/2020 Central States SE and SW Areas Pension Plan 36-6044243/ 001 Critical and Declining Critical and Declining Implemented 4,282 4,128 3,836 No 1/31/2007 - 3/31/2023 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 23-2627428/ 001 Critical Critical Implemented 361 319 336 No 1/31/2023 Local 731 Private Scavengers and Garage Attendants Pension Trust Fund 36-6513567/ 001 Green Green N/A 973 907 898 No 4/26/2019 SEIU National Industry Pension Fund (2) 52-6148540/ 001 Critical Critical Implemented 623 501 429 No 12/31/2019 - 4/14/2022 LIUNA National Industrial Pension Fund 52-6074345/ 001 Critical Critical Implemented 678 620 584 No 12/31/2020 Other funds 17,873 17,109 14,668 Total contributions $ 33,561 $ 32,623 $ 28,689 (1) Effective January 1, 2018, the UNITE HERE portion of the National Retirement Fund was spun off into the newly formed UNITE HERE Retirement Fund. (2) Over 75% of the Company's participants in this fund are covered by a single CBA that expires on 12/31/2019. The Company provided more than 5 percent of the total contributions for the following plans and plan years: Pension Contributions to the plan exceeded more than 5% of total contributions (as of the plan's year-end) Local 1102 Retirement Trust 12/31/2018 and 12/31/2017 Service Employees Pension Fund of Upstate New York 12/31/2018 and 12/31/2017 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income taxes by source of income | The components of income before income taxes by source of income are as follows (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 United States $ 418,902 $ 326,277 $ 362,783 Non-U.S. 137,270 145,599 157,859 $ 556,172 $ 471,876 $ 520,642 |
Provision (benefit) for income taxes | The provision (benefit) for income taxes consists of (in thousands): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Current: Federal $ 8,781 $ (48,249 ) $ 111,175 State and local 19,966 11,356 15,455 Non-U.S. 38,456 44,618 57,681 67,203 7,725 184,311 Deferred: Federal 35,251 (113,475 ) (21,956 ) State and local 7,683 7,408 3,165 Non-U.S. (2,431 ) 1,778 (19,065 ) 40,503 (104,289 ) (37,856 ) $ 107,706 $ (96,564 ) $ 146,455 |
Effective Income Tax Rate Reconciliation | The provision for income taxes varies from the amount determined by applying the United States Federal statutory rate to pretax income as a result of the following (all percentages are as a percentage of income before income taxes): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 United States statutory income tax rate 21.0 % 24.5 % 35.0 % Increase (decrease) in taxes, resulting from: State income taxes, net of Federal tax benefit 4.2 3.2 2.3 Foreign taxes (1) 2.2 3.3 (4.3 ) Permanent book/tax differences 0.4 (1.2 ) (3.8 ) Uncertain tax positions — (0.3 ) 1.4 U.S. Tax Reform - Remeasurement of deferred taxes — (49.3 ) — U.S. Tax Reform - Foreign tax credit valuation allowance (2.3 ) 2.8 — Sale of Healthcare Technologies (4.4 ) — — Tax credits & other (1.7 ) (3.5 ) (2.5 ) Effective income tax rate 19.4 % (20.5 )% 28.1 % (1) Includes differences between the United States statutory tax rate and tax rates in foreign jurisdictions, foreign withholding taxes and taxation of foreign earnings, which includes the transition tax on deemed repatriated earnings of foreign subsidiaries and the tax on "Global Intangible Low-Taxed Income" ("GILTI"). |
Components of deferred taxes | As of September 27, 2019 and September 28, 2018 , the components of deferred taxes are as follows (in thousands): September 27, 2019 September 28, 2018 Deferred tax liabilities: Property and equipment $ 137,293 $ 126,345 Investments 11,902 12,213 Other intangible assets, including goodwill 462,637 474,263 Cost to fulfill - Rental merchandise in-service 83,483 63,835 Derivatives — 21,599 Other 37,309 17,450 Gross deferred tax liability 732,624 715,705 Deferred tax assets: Derivatives 11,949 — Insurance 34,112 40,240 Employee compensation and benefits 113,269 136,603 Accruals and allowances 31,844 19,338 Net operating loss/credit carryforwards and other 56,508 60,576 Gross deferred tax asset, before valuation allowances 247,682 256,757 Valuation allowances (17,532 ) (29,023 ) Net deferred tax liability $ 502,474 $ 487,971 |
Schedule of Valuation and Qualifying Accounts Disclosure | Rollforward of the valuation allowance is as follows: September 27, 2019 September 28, 2018 Balance, beginning of year $ (29,023 ) $ (11,513 ) Additions (1) (2,330 ) (21,101 ) Subtractions (2) 13,821 3,591 Balance, end of year $ (17,532 ) $ (29,023 ) (1) The additions in fiscal 2019 were mainly driven by losses in certain foreign subsidiaries. The additions in fiscal 2018 were mainly driven by the Tax Cuts and Jobs Act impacting the ability to utilize FTC carryforwards going forward, as well as the inability to use foreign NOL carryforwards. (2) Valuation allowances against FTC carryforwards were released during fiscal 2019 as a result of Treasury Regulations. During fiscal 2018, tax planning resulted in taxable income in separate Company states that had historical losses. ARAMARK AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE FISCAL YEARS ENDED SEPTEMBER 27, 2019 , SEPTEMBER 28, 2018 AND SEPTEMBER 29, 2017 Additions Reductions Balance, Beginning of Period Charged to Income Deductions from Reserves (1) Balance, End of Period Description Fiscal Year 2019 Reserve for doubtful accounts, advances & current notes receivable $ 52,682 $ 21,821 $ 24,937 $ 49,566 Fiscal Year 2018 Reserve for doubtful accounts, advances & current notes receivable $ 53,416 $ 22,009 $ 22,743 $ 52,682 Fiscal Year 2017 Reserve for doubtful accounts, advances & current notes receivable $ 48,058 $ 18,141 $ 12,783 $ 53,416 (1) Amounts determined not to be collectible and charged against the reserve and translation. |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows (in thousands): September 27, 2019 September 28, 2018 Balance, beginning of year $ 29,089 $ 30,812 Additions based on tax positions taken in the current year 3,713 709 Additions for tax positions taken in prior years 6,531 1,505 Reductions for remeasurements, settlements and payments (1,484 ) (2,368 ) Reductions due to statute expiration (1,577 ) (1,569 ) Balance, end of year $ 36,272 $ 29,089 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Stockholders' Equity Note [Abstract] | |
Dividends Paid | The following table presents the Company's dividend payments to its stockholders (in millions): September 27, 2019 September 28, 2018 September 29, 2017 Dividend payments $ 108.4 $ 103.1 $ 100.8 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Share-based Payment Arrangement [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"), Performance-Based Options ("PBOs"), Time-Based Restricted Stock Units ("RSUs"), Performance Stock Units and Performance Restricted Stock ("PSUs"), and Deferred Stock Units classified as "Selling and general corporate expenses" in the Consolidated Statements of Income (in millions). Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 TBOs $ 14.7 $ 18.5 $ 20.4 RSUs 28.9 24.1 20.8 PSUs (1) 9.9 43.7 21.6 Deferred Stock Units 1.8 2.0 2.4 $ 55.3 $ 88.3 $ 65.2 Taxes related to share-based compensation $ 13.7 $ 24.1 $ 24.2 Cash Received from Option Exercises 39.1 21.5 28.8 Tax Benefit on Share Deliveries (2) 4.8 7.4 23.3 (1) Share-based compensation expense was reduced during fiscal 2019 based on lower than estimated target attainment on plan metrics for the fiscal 2018 PSU grants, resulting in the reversal of previously recognized share-based compensation expense of $6.6 million. The Company also reversed previously recognized share-based compensation expense based on the actual target for the 2017 PSU grants achieved as of the end of fiscal 2019 of $5.2 million. During fiscal 2018, the Company increased the estimated target attainment on plan metrics for both the fiscal 2016 and fiscal 2017 PSU grants, resulting in an additional $18.9 million of share-based compensation expense. (2) The tax benefit on option exercises and restricted stock unit deliveries is included in "Accrued Expenses" in the Consolidated Statements of Cash Flows. |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The below table summarizes the unrecognized compensation expense as of September 27, 2019 related to nonvested awards and the weighted-average period they are expected to be recognized: Unrecognized Compensation Expense (in millions) Weighted-Average Period (Years) TBOs $ 15.7 2.25 RSUs 54.5 2.34 PSUs 15.9 1.54 Total $ 86.1 |
Schedule of Stock Option Valuation Assumptions | Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Total intrinsic value exercised (in millions) $ 26.8 $ 16.6 $ 32.2 Total fair value that vested (in millions) 16.3 17.3 17.7 The table below presents the weighted average assumptions and related valuations for TBOs. Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Expected volatility 20% 20% 25% Expected dividend yield 1.17% - 1.44% 1.03% - 1.11% 1.11% - 1.21% Expected life (in years) 6.25 6.25 6.25 Risk-free interest rate 1.62% - 3.02% 2.25% - 2.94% 2.14% - 2.20% Weighted-average grant-date fair value $8.23 $8.75 $8.47 |
Schedule of Options Activity | A summary of PBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value ($000s) Weighted-Average Remaining Term (Years) Outstanding at September 28, 2018 1,875 $ 12.46 Granted — $ — Exercised (364 ) $ 11.17 Forfeited and expired — $ — Outstanding at September 27, 2019 1,511 $ 12.77 $ 45,696 2.2 Exercisable at September 27, 2019 1,511 $ 12.77 $ 45,696 2.2 A summary of TBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value ($000s) Weighted-Average Remaining Term (Years) Outstanding at September 28, 2018 13,302 $ 26.60 Granted 1,955 $ 36.42 Exercised (1,973 ) $ 21.90 Forfeited and expired (928 ) $ 35.72 Outstanding at September 27, 2019 12,356 $ 28.22 $ 182,889 5.7 Exercisable at September 27, 2019 8,150 $ 23.82 $ 156,493 4.4 Expected to vest at September 27, 2019 3,980 $ 36.72 $ 25,066 8.2 |
Schedule of Restricted Stock Units Activity | Performance Stock Units Units Weighted Average Grant Date Fair Value Outstanding at September 28, 2018 1,614 $ 34.99 Granted (3) 1,299 $ 36.44 Vested (1,051) $ 32.65 Forfeited (241) $ 36.66 Outstanding at September 27, 2019 1,621 $ 36.20 (3) Includes approximately 0.5 million shares resulting from the payout of the fiscal 2016 PSU grants due to exceeding the adjusted earnings per share target. forfeiture if employment is terminated other than due to death, disability or retirement, and the units are nontransferable while subject to forfeiture. Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at September 28, 2018 2,408 $ 36.66 Granted 1,204 $ 36.53 Vested (630) $ 35.49 Forfeited (333) $ 36.99 Outstanding at September 27, 2019 2,649 $ 36.89 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | 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): Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 Earnings: Net income attributable to Aramark stockholders $ 448,549 $ 567,885 $ 373,923 Shares: Basic weighted-average shares outstanding 246,854 245,771 244,453 Effect of dilutive securities 5,156 7,581 7,104 Diluted weighted-average shares outstanding 252,010 253,352 251,557 Basic Earnings Per Share: Net income attributable to Aramark stockholders $ 1.82 $ 2.31 $ 1.53 Diluted Earnings Per Share: Net income attributable to Aramark stockholders $ 1.78 $ 2.24 $ 1.49 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Commitments Under All Noncancelable Operating Leases | Following is a schedule of the future minimum rental and similar commitments under all noncancelable operating leases and certain residual value guarantees as of September 27, 2019 (in thousands): 2020 $ 101,061 2021 74,908 2022 56,765 2023 43,795 2024 36,215 2025-Thereafter 214,818 Total minimum rental obligations $ 527,562 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | The following tables summarize the Company's unaudited quarterly results for fiscal 2019 and fiscal 2018 (in thousands, except per share amounts): Quarter Ended December 28, 2018 March 29, 2019 June 28, 2019 September 27, 2019 Revenue $ 4,265,349 $ 3,999,987 $ 4,010,761 $ 3,951,244 Cost of services provided 3,794,445 3,639,959 3,594,978 3,503,280 Net income (1) 250,676 29,310 83,064 85,414 Net income attributable to Aramark stockholders (1) 250,682 29,353 82,955 85,557 Earnings per share: Basic $ 1.02 $ 0.12 $ 0.34 $ 0.35 Diluted 0.99 0.12 0.33 0.34 Dividends declared per common share 0.110 0.110 0.110 0.110 Quarter Ended December 29, 2017 March 30, 2018 June 29, 2018 September 28, 2018 Revenue $ 3,965,118 $ 3,939,311 $ 3,971,606 $ 3,913,598 Cost of services provided (2) 3,522,230 3,563,009 3,526,293 3,386,380 Net income (3) 292,440 27,716 72,716 175,568 Net income attributable to Aramark stockholders (3) 292,284 27,569 72,577 175,455 Earnings per share: Basic $ 1.19 $ 0.11 $ 0.29 $ 0.71 Diluted 1.16 0.11 0.29 0.69 Dividends declared per common share 0.105 0.105 0.105 0.105 (1) Fiscal 2019 net income was impacted by the sale of HCT in the first quarter of fiscal 2019 (see Note 2). (2) Fiscal 2018 balances have been restated to reflect the impact of the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (see Note 1). (3) Fiscal 2018 net income was impacted by the passage of the "Tax Cuts and Jobs Act" (see Note 9). |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended | |||||||||||
Sep. 27, 2019 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Sales by Segment | Financial information by segment follows (in millions): Revenue (1) Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 FSS United States $ 9,898.6 $ 10,137.8 $ 9,748.0 FSS International 3,742.9 3,655.8 3,291.7 Uniform 2,585.8 1,996.0 1,564.7 $ 16,227.3 $ 15,789.6 $ 14,604.4 | |||||||||||
Schedule of Operating Income by Segment | Operating Income (1)(2)(3) Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 FSS United States $ 716.8 $ 682.7 $ 596.6 FSS International 142.7 142.2 155.8 Uniform 191.3 181.4 182.3 1,050.8 1,006.3 934.7 Corporate (159.6 ) (187.9 ) (133.1 ) Operating Income 891.2 818.4 801.6 Interest and Other Financing Costs, net (335.0 ) (346.6 ) (280.9 ) Income Before Income Taxes $ 556.2 $ 471.8 $ 520.7 | |||||||||||
Schedule of Depreciation and Amortization by Segment | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;padding-top:6px;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="12" rowspan="1"></td></tr><tr><td style="width:51%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:14%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:14%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:13%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="11" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Depreciation and Amortization</font><font style="font-family:inherit;font-size:8pt;font-weight:bold;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">(1)</sup></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="11" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Fiscal Year Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">September&#160;27, 2019</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">September&#160;28, 2018</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">September&#160;29, 2017</font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:16px;text-indent:-16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">FSS United States</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">381.6</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">405.0</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">372.7</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:16px;text-indent:-16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">FSS International</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">69.4</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">64.8</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">55.3</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:16px;text-indent:-16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Uniform</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">138.7</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">123.4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">77.2</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Corporate</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2.9</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">3.0</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">3.0</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">592.6</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">596.2</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">508.2</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div></div></div> | |||||||||||
Schedule of Capital Expenditures and Client Contract Investments and Other by Segment | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;padding-top:6px;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="12" rowspan="1"></td></tr><tr><td style="width:51%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:14%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:14%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:13%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="11" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Capital Expenditures and Other</font><font style="font-family:inherit;font-size:8pt;font-weight:bold;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">(1)</sup></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="11" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Fiscal Year Ended</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">September&#160;27, 2019</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">September 28, 2018*</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:9px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">September&#160;29, 2017</font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:16px;text-indent:-16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">FSS United States</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">375.9</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">494.3</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">420.4</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:16px;text-indent:-16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">FSS International</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">69.4</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">84.1</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">66.1</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:top;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:16px;text-indent:-16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Uniform</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">61.0</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">332.5</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">67.5</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Corporate</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">0.1</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1.2</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1.0</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">506.4</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px 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Schedule of Assets by Segment | Identifiable Assets (1) September 27, 2019 September 28, 2018 FSS United States $ 8,368.1 $ 8,482.8 FSS International 2,039.2 2,072.0 Uniform 3,118.7 2,991.7 Corporate 210.3 173.6 $ 13,736.3 $ 13,720.1 | |||||||||||
Schedule of Revenue by Geographic Areas | The following geographic data include revenue generated by subsidiaries within that geographic area and net property & equipment based on physical location (in millions): Revenue (1) Fiscal Year Ended September 27, 2019 September 28, 2018 September 29, 2017 United States $ 12,070.0 $ 11,795.6 $ 11,098.0 Foreign 4,157.3 3,994.0 3,506.4 $ 16,227.3 $ 15,789.6 $ 14,604.4 | |||||||||||
Schedule of Net Property and Equipment by Geographic Areas | Property and Equipment, net (1) September 27, 2019 September 28, 2018 United States $ 1,854.7 $ 1,065.9 Foreign 327.1 312.2 $ 2,181.8 $ 1,378.1 (1) The adoption of the new ASU related to revenue recognition impacted each of the financial information categories presented (see Note 7). All financial information categories in fiscal 2019 for the FSS United States segment were also impacted by the sale of HCT in the first quarter of fiscal 2019 (see Note 2). (2) Fiscal 2018 and 2017 balances have been restated to reflect the impact of the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (see Note 1). (3) During fiscal 2019, the Company incurred expenses of $74.9 million related to special recognition awards, retirement contributions and employee training costs as a result of tax savings from U.S. tax reform. The breakdown of these expenses by segment are as follows: FSS United States: $58.7 million; FSS International: $0.4 million; Uniform: $14.4 million; and Corporate: $1.4 million. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements of Aramark and Subsidiaries (Tables) | 12 Months Ended |
Sep. 27, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Consolidated Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEETS September 27, 2019 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated ASSETS Current Assets: Cash and cash equivalents $ 5 $ 33,510 $ 40,544 $ 172,584 $ — $ 246,643 Receivables — 1,966 522,627 1,282,371 — 1,806,964 Inventories — 15,804 301,091 94,424 — 411,319 Prepayments and other current assets — 27,164 82,666 83,631 — 193,461 Total current assets 5 78,444 946,928 1,633,010 — 2,658,387 Property and Equipment, net — 43,329 1,784,410 354,023 — 2,181,762 Goodwill — 173,104 4,694,549 651,147 — 5,518,800 Investment in and Advances to Subsidiaries 3,320,042 6,649,119 — 717,228 (10,686,389 ) — Other Intangible Assets — 29,684 1,819,315 184,567 — 2,033,566 Other Assets — 20,382 979,350 346,076 (2,002 ) 1,343,806 $ 3,320,047 $ 6,994,062 $ 10,224,552 $ 3,886,051 $ (10,688,391 ) $ 13,736,321 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term borrowings $ — $ 6,256 $ 27,924 $ 35,748 $ — $ 69,928 Accounts payable — 127,640 507,903 363,974 — 999,517 Accrued expenses and other current liabilities — 241,523 1,030,074 364,168 88 1,635,853 Total current liabilities — 375,419 1,565,901 763,890 88 2,705,298 Long-term Borrowings — 6,090,487 82,394 439,358 — 6,612,239 Deferred Income Taxes and Other Noncurrent Liabilities — 380,453 569,409 138,960 — 1,088,822 Intercompany Payable — — 4,187,591 726,464 (4,914,055 ) — Redeemable Noncontrolling Interest — — 9,915 — — 9,915 Total Stockholders' Equity 3,320,047 147,703 3,809,342 1,817,379 (5,774,424 ) 3,320,047 $ 3,320,047 $ 6,994,062 $ 10,224,552 $ 3,886,051 $ (10,688,391 ) $ 13,736,321 CONDENSED CONSOLIDATING BALANCE SHEETS September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors 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 Statement of Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the year ended September 27, 2019 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 1,062,655 $ 10,653,013 $ 4,511,673 $ — $ 16,227,341 Costs and Expenses: Cost of services provided — 981,661 9,362,232 4,188,769 — 14,532,662 Depreciation and amortization — 16,377 473,833 102,363 — 592,573 Selling and general corporate expenses — 162,963 176,714 27,579 — 367,256 Gain on sale of Healthcare Technologies — — (156,309 ) — — (156,309 ) Interest and other financing costs, net — 316,120 3,531 15,336 — 334,987 Expense allocations — (315,432 ) 274,501 40,931 — — — 1,161,689 10,134,502 4,374,978 — 15,671,169 Income (Loss) before Income Taxes — (99,034 ) 518,511 136,695 — 556,172 Provision (Benefit) for Income Taxes — (38,388 ) 109,144 36,950 — 107,706 Equity in Net Income of Subsidiaries 448,549 — — — (448,549 ) — Net income (loss) 448,549 (60,646 ) 409,367 99,745 (448,549 ) 448,466 Less: Net loss attributable to noncontrolling interest — — (83 ) — — (83 ) Net income (loss) attributable to Aramark stockholders 448,549 (60,646 ) 409,450 99,745 (448,549 ) 448,549 Other comprehensive income (loss), net of tax (125,742 ) (71,282 ) (553 ) (121,505 ) 193,340 (125,742 ) Comprehensive income (loss) attributable to Aramark stockholders $ 322,807 $ (131,928 ) $ 408,897 $ (21,760 ) $ (255,209 ) $ 322,807 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the year ended September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 1,027,573 $ 10,432,088 $ 4,329,972 $ — $ 15,789,633 Costs and Expenses: Cost of services provided — 848,739 9,132,991 4,016,181 — 13,997,911 Depreciation and amortization — 19,466 483,106 93,610 — 596,182 Selling and general corporate expenses — 195,093 158,064 23,972 — 377,129 Interest and other financing costs, net — 329,027 266 17,242 — 346,535 Expense allocations — (374,970 ) 353,628 21,342 — — — 1,017,355 10,128,055 4,172,347 — 15,317,757 Income before Income Taxes — 10,218 304,033 157,625 — 471,876 Provision (Benefit) for Income Taxes — (3,521 ) (143,452 ) 50,409 — (96,564 ) Equity in Net Income of Subsidiaries 567,885 — — — (567,885 ) — Net income 567,885 13,739 447,485 107,216 (567,885 ) 568,440 Less: Net income attributable to noncontrolling interest — — 555 — — 555 Net income attributable to Aramark stockholders 567,885 13,739 446,930 107,216 (567,885 ) 567,885 Other comprehensive income (loss), net of tax 32,537 43,686 3,178 (36,776 ) (10,088 ) 32,537 Comprehensive income attributable to Aramark stockholders $ 600,422 $ 57,425 $ 450,108 $ 70,440 $ (577,973 ) $ 600,422 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the year ended September 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Revenue $ — $ 1,041,490 $ 9,708,157 $ 3,854,765 $ — $ 14,604,412 Costs and Expenses: Cost of services provided — 941,031 8,507,705 3,546,667 — 12,995,403 Depreciation and amortization — 17,502 416,979 73,731 — 508,212 Selling and general corporate expenses — 140,305 138,304 20,561 — 299,170 Interest and other financing costs, net — 273,405 (3,196 ) 10,776 — 280,985 Expense allocations — (348,042 ) 318,199 29,843 — — — 1,024,201 9,377,991 3,681,578 — 14,083,770 Income Before Income Taxes — 17,289 330,166 173,187 — 520,642 Provision for Income Taxes — 5,139 98,144 43,172 — 146,455 Equity in Net Income of Subsidiaries 373,923 — — — (373,923 ) — Net income 373,923 12,150 232,022 130,015 (373,923 ) 374,187 Less: Net income attributable to noncontrolling interest — — 264 — — 264 Net income attributable to Aramark stockholders 373,923 12,150 231,758 130,015 (373,923 ) 373,923 Other comprehensive income, net of tax 57,023 35,667 431 80,204 (116,302 ) 57,023 Comprehensive income attributable to Aramark stockholders $ 430,946 $ 47,817 $ 232,189 $ 210,219 $ (490,225 ) $ 430,946 |
Schedule of Condensed Consolidated Cash Flow Statement | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the year ended September 27, 2019 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Net cash provided by (used in) operating activities $ — $ (47,231 ) $ 757,832 $ 290,539 $ (16,913 ) $ 984,227 Cash flows from investing activities: Purchases of property and equipment and other — (12,160 ) (414,017 ) (76,913 ) — (503,090 ) Disposals of property and equipment — 6,644 6,665 4,562 — 17,871 Proceeds from divestiture — — 293,711 — — 293,711 Acquisitions of businesses, net of cash acquired — — (23,028 ) (21,835 ) — (44,863 ) Proceeds from government agencies related to property and equipment — — 23,025 — — 23,025 Other investing activities — (356 ) 3,677 504 — 3,825 Net cash used in investing activities — (5,872 ) (109,967 ) (93,682 ) — (209,521 ) Cash flows from financing activities: Proceeds from long-term borrowings — — — 77,630 — 77,630 Payments of long-term borrowings — (545,809 ) (34,431 ) (74,320 ) — (654,560 ) Payments of dividends — (108,439 ) — — — (108,439 ) Proceeds from issuance of common stock — 39,087 — — — 39,087 Repurchase of common stock — (50,000 ) — — — (50,000 ) Other financing activities — (36,305 ) (2,192 ) (113 ) — (38,610 ) Change in intercompany, net — 737,363 (600,542 ) (153,734 ) 16,913 — Net cash provided by (used in) financing activities — 35,897 (637,165 ) (150,537 ) 16,913 (734,892 ) Effect of foreign exchange rates on cash and cash equivalents — — — (8,196 ) — (8,196 ) Decrease (increase) in cash and cash equivalents — (17,206 ) 10,700 38,124 — 31,618 Cash and cash equivalents, beginning of period 5 50,716 29,844 134,460 — 215,025 Cash and cash equivalents, end of period $ 5 $ 33,510 $ 40,544 $ 172,584 $ — $ 246,643 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the year ended September 28, 2018 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Net cash provided by operating activities $ — $ 111,541 $ 690,218 $ 315,703 $ (65,587 ) $ 1,051,875 Cash flows from investing activities: Purchases of property and equipment other — (13,133 ) (532,923 ) (82,548 ) — (628,604 ) Disposals of property and equipment — 2,252 4,301 3,938 — 10,491 Acquisitions of businesses, net of cash acquired — (2,381,800 ) 244,581 (103,065 ) — (2,240,284 ) Other investing activities — (3,095 ) 328 (4,112 ) — (6,879 ) Net cash used in investing activities — (2,395,776 ) (283,713 ) (185,787 ) — (2,865,276 ) Cash flows from financing activities: Proceeds from long-term borrowings — 3,012,072 — 165,241 — 3,177,313 Payments of long-term borrowings — (833,854 ) (28,142 ) (111,693 ) — (973,689 ) Net change in funding under the Receivables Facility — — — (254,200 ) — (254,200 ) Payments of dividends — (103,115 ) — — — (103,115 ) Proceeds from issuance of common stock — 21,507 — — — 21,507 Repurchase of common stock — (24,410 ) — — — (24,410 ) Other financing activities — (45,905 ) (2,958 ) (390 ) — (49,253 ) Change in intercompany, net — 197,144 (383,074 ) 120,343 65,587 — Net cash provided by (used in) financing activities — 2,223,439 (414,174 ) (80,699 ) 65,587 1,794,153 Effect of foreign exchange rates on cash and cash equivalents — — — (4,524 ) — (4,524 ) (Decrease) increase in cash and cash equivalents — (60,796 ) (7,669 ) 44,693 — (23,772 ) Cash and cash equivalents, beginning of period 5 111,512 37,513 89,767 — 238,797 Cash and cash equivalents, end of period $ 5 $ 50,716 $ 29,844 $ 134,460 $ — $ 215,025 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the year ended September 29, 2017 (in thousands) Aramark (Parent) Issuers Guarantors Non Guarantors Eliminations Consolidated Net cash provided by operating activities $ — $ 261,282 $ 779,801 $ 200,018 $ (188,275 ) $ 1,052,826 Cash flows from investing activities: Purchases of property and equipment and other — (20,939 ) (443,262 ) (88,528 ) — (552,729 ) Disposals of property and equipment — 494 14,780 3,632 — 18,906 Acquisitions of businesses, net of cash acquired — — (37,130 ) (104,992 ) — (142,122 ) Other investing activities — (69,401 ) 36,946 29,916 — (2,539 ) Net cash used in investing activities — (89,846 ) (428,666 ) (159,972 ) — (678,484 ) Cash flows from financing activities: Proceeds from long-term borrowings — 3,451,164 — 400,253 — 3,851,417 Payments of long-term borrowings — (3,572,268 ) (19,851 ) (319,873 ) — (3,911,992 ) Net change in funding under the Receivables Facility — — — (13,800 ) — (13,800 ) Payments of dividends — (100,813 ) — — — (100,813 ) Proceeds from issuance of common stock — 28,779 — — — 28,779 Repurchase of common stock — (100,000 ) — — — (100,000 ) Other financing activities — (69,172 ) (2,973 ) 29,868 — (42,277 ) Change in intercompany, net — 254,536 (322,142 ) (120,669 ) 188,275 — Net cash used in financing activities — (107,774 ) (344,966 ) (24,221 ) 188,275 (288,686 ) Effect of foreign exchange rates on cash and cash equivalents — — — 561 — 561 Increase in cash and cash equivalents — 63,662 6,169 16,386 — 86,217 Cash and cash equivalents, beginning of period 5 47,850 31,344 73,381 — 152,580 Cash and cash equivalents, end of period $ 5 $ 111,512 $ 37,513 $ 89,767 $ — $ 238,797 |
Nature of Business, Basis of _4
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Sep. 27, 2019USD ($)segment | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) | Sep. 29, 2018USD ($) | Oct. 01, 2016USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Foreign currency transaction loss | $ 4,900 | $ 3,800 | |||
Depreciation | 421,400 | 270,000 | $ 237,900 | ||
Disposals of property and equipment | 17,871 | 10,491 | 18,906 | ||
Capital lease transactions | 41,600 | 34,000 | 55,400 | ||
Payments related to tax withholding for share-based compensation | 34,300 | 19,000 | 32,700 | ||
Cash and cash equivalents at the Captive | 50,400 | ||||
Inventory Valuation Reserves | 23,600 | 21,500 | |||
Building | Food and Support Services - International | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Disposals of property and equipment | 30,100 | ||||
Accounting Standards Update 2017-07 | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of new accounting principle in period of adoption | $ 7,700 | $ 6,400 | |||
Accounting Standards Update 2016-02 | Prepaid rent | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Operating Lease, Right-of-Use Asset | 167,000 | ||||
Accounting Standards Update 2016-02 | Minimum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Operating lease, liability | 410,000 | ||||
Operating Lease, Right-of-Use Asset | 540,000 | ||||
Accounting Standards Update 2016-02 | Maximum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Operating lease, liability | 440,000 | ||||
Operating Lease, Right-of-Use Asset | 570,000 | ||||
Retained Earnings | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of new accounting principle in period of adoption | $ 58,395 | $ 9,142 | |||
Retained Earnings | Accounting Standards Update 2014-09 | Maximum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of new accounting principle in period of adoption | $ 58,400 | ||||
Building and Building Improvements | Minimum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 10 years | ||||
Building and Building Improvements | Maximum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 40 years | ||||
Service Equipment and Fixtures | Minimum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Service Equipment and Fixtures | Maximum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives | 10 years |
Nature of Business, Basis of _5
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income (loss) | $ 448,466 | $ 568,440 | $ 374,187 |
Pension plan adjustments, Pre-Tax Amount | (29,137) | 29,650 | 22,548 |
Pension plan adjustments, tax expense (benefit) | 6,543 | (9,003) | (2,556) |
Pension plan adjustments, After-Tax Amount | (22,594) | 20,647 | 19,992 |
Foreign currency translation adjustments, Pre-Tax Amount | (34,099) | (31,003) | 5,903 |
Foreign currency translation adjustments, tax benefit | (209) | (250) | 0 |
Foreign currency translation adjustments, After-Tax Amount | (34,308) | (31,253) | 5,903 |
Gain (Loss) recognized in other comprehensive income | (84,392) | 55,445 | 31,884 |
Unrealized losses arising during the period, Tax Effect | 21,942 | (16,134) | (12,435) |
Unrealized losses arising during the period, After-Tax Amount | (62,450) | 39,311 | 19,449 |
Reclassification adjustments, Pre-Tax Amount | (6,484) | 5,185 | 16,606 |
Reclassification adjustments, Tax Effect | 1,686 | (1,510) | (6,476) |
Reclassification adjustments, After-Tax Amount | (4,798) | 3,675 | 10,130 |
Share of equity investee's comprehensive loss, Pre-Tax Amount | (1,592) | 157 | 2,383 |
Share of equity investee's comprehensive loss, tax (expense) benefit | 0 | 0 | (834) |
Share of equity investee's comprehensive loss, After-Tax Amount | (1,592) | 157 | 1,549 |
Other comprehensive income (loss), Pre-Tax Amount | (155,704) | 59,434 | 79,324 |
Other comprehensive income (loss), tax (expense) benefit | 29,962 | (26,897) | (22,301) |
Other comprehensive income (loss), net of tax | (125,742) | 32,537 | 57,023 |
Comprehensive income | 322,724 | 600,977 | 431,210 |
Less: Net income (loss) attributable to noncontrolling interest | (83) | 555 | 264 |
Comprehensive income attributable to Aramark stockholders | $ 322,807 | $ 600,422 | $ 430,946 |
Nature of Business, Basis of _6
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Pension plan adjustments | $ (47,222) | $ (24,628) |
Foreign currency translation adjustments | (128,119) | (93,811) |
Cash flow hedges | (31,056) | 36,192 |
Share of equity investee's accumulated other comprehensive loss | (10,568) | (8,976) |
Accumulated other comprehensive income (loss), net of tax | $ (216,965) | $ (91,223) |
Nature of Business, Basis of _7
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Inventories (Details) | Sep. 27, 2019 | Sep. 28, 2018 |
Components of Inventories [Line Items] | ||
Percentage of inventory | 100.00% | 100.00% |
Food | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 54.30% | 31.60% |
Uniform | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 40.50% | 65.70% |
Parts, supplies and novelties | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 5.20% | 2.70% |
Nature of Business, Basis of _8
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Client contract investments | $ 0 | $ 1,034,476 |
Long-term prepaid rent | 166,931 | 0 |
Costs to fulfill - Client | 109,401 | 0 |
Cost to fulfill - Rental Merchandise in-service | 356,853 | 0 |
Long-term receivables | 27,574 | 90,068 |
Miscellaneous investments | 264,452 | 239,547 |
Computer software costs, net | 170,510 | 152,188 |
Interest rate swap agreements | 0 | 54,708 |
Employee sales commissions | 111,001 | 0 |
Other | 137,084 | 122,184 |
Other Assets | $ 1,343,806 | $ 1,693,171 |
Minimum | Computer Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 3 years | |
Maximum | Computer Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 10 years |
Nature of Business, Basis of _9
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Other Assets - Footnotes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Schedule of Investments [Line Items] | |||
Amortization of capital investments related to client contracts | $ 183,600 | $ 159,600 | |
Miscellaneous investments | $ 264,452 | 239,547 | |
AIM Services Co., Ltd | |||
Schedule of Investments [Line Items] | |||
Miscellaneous investments | $ 180,500 | $ 155,100 | |
Personalized Work Apparel, Linens, and Rental Items | Minimum | |||
Schedule of Investments [Line Items] | |||
Estimated useful lives | 1 year | ||
Personalized Work Apparel, Linens, and Rental Items | Maximum | |||
Schedule of Investments [Line Items] | |||
Estimated useful lives | 4 years | ||
Building and Building Improvements | Minimum | |||
Schedule of Investments [Line Items] | |||
Estimated useful lives | 10 years | ||
Building and Building Improvements | Maximum | |||
Schedule of Investments [Line Items] | |||
Estimated useful lives | 40 years | ||
Service Equipment and Fixtures | Minimum | |||
Schedule of Investments [Line Items] | |||
Estimated useful lives | 3 years | ||
Service Equipment and Fixtures | Maximum | |||
Schedule of Investments [Line Items] | |||
Estimated useful lives | 10 years | ||
Cost of services provided | |||
Schedule of Investments [Line Items] | |||
Asset Impairment Charges | $ 7,000 |
Nature of Business, Basis of_10
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Other Accrued Expenses and Liabilities (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred income(1) | $ 345,840 | $ 299,089 |
Accrued client expenses | 105,636 | 98,282 |
Accrued taxes | 61,816 | 96,855 |
Accrued insurance and interest | 192,695 | 164,890 |
Other | 420,249 | 358,917 |
Accrued expenses and other current liabilities | 1,126,236 | $ 1,018,033 |
Consideration received from customers prior to service being performed | 319,000 | |
Consideration received from vendors prior to goods being consumed | $ 26,800 |
Nature of Business, Basis of_11
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Deferred Income Taxes and Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred income tax payable | $ 519,904 | $ 503,429 |
Deferred compensation | 212,090 | 226,558 |
Pension-related liabilities | 21,367 | 28,478 |
Interest rate swap agreements | 43,112 | 0 |
Other noncurrent liabilities | 292,349 | 218,750 |
Deferred Income Taxes and Other Noncurrent Liabilities | $ 1,088,822 | $ 977,215 |
Nature of Business, Basis of_12
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Interest paid | $ 306.2 | $ 307.1 | $ 201.7 |
Income taxes (refunded) paid | $ 139.3 | $ (1.1) | $ 126.3 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) $ in Thousands | Nov. 09, 2019USD ($) | Jan. 19, 2018USD ($) | Dec. 11, 2017USD ($) | Jun. 28, 2019USD ($) | Sep. 27, 2019USD ($)Trade_Names | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Number of trade names acquired | Trade_Names | 2 | ||||||
Proceeds from divestitures | $ 293,711 | $ 0 | $ 0 | ||||
Gain on sale of Healthcare Technologies | 156,309 | 0 | 0 | ||||
Goodwill | 5,518,800 | 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 | ||||||
Avendra | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, gross | $ 1,386,400 | ||||||
Escrow payment for potential final adjustments | 87,300 | ||||||
Goodwill | $ 530,500 | ||||||
AmeriPride and Avendra | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 36,100 | 78,100 | |||||
Revenue of acquiree since acquisition date, actual | 522,200 | ||||||
Combined net income of acquiree since acquisition date | 8,000 | ||||||
Other Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses, gross | 44,900 | 30,600 | $ 142,100 | ||||
Selling, General Expenses | AmeriPride | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 12,700 | ||||||
Selling, General Expenses | Avendra | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 11,500 | ||||||
Interest and Other Financing Costs, Net | AmeriPride | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 5,200 | ||||||
Interest and Other Financing Costs, Net | Avendra | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | 6,700 | ||||||
Food and Support Services - United States | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 3,949,218 | $ 4,028,454 | |||||
Healthcare Technologies | |||||||
Business Acquisition [Line Items] | |||||||
Gain on sale of Healthcare Technologies | $ 156,300 | ||||||
Tax effected gain on divestiture | $ 139,200 | ||||||
Healthcare Technologies | Subsequent Event | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from divestitures | $ 293,700 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jan. 19, 2018 | Dec. 11, 2017 |
AmeriPride | ||
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 | |
Avendra | ||
Business Acquisition [Line Items] | ||
Current assets | $ 157,614 | |
Noncurrent assets | 1,345,532 | |
Total assets | 1,503,146 | |
Current liabilities | 111,087 | |
Noncurrent liabilities | 5,681 | |
Total liabilities | $ 116,768 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures (Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Jan. 19, 2018 | Dec. 11, 2017 | Sep. 27, 2019 |
Customer relationship assets | |||
Business Acquisition [Line Items] | |||
Weighted-average estimated useful life (in years) | 14 years | ||
AmeriPride | |||
Business Acquisition [Line Items] | |||
Total intangible assets | $ 321 | ||
AmeriPride | Customer relationship assets | |||
Business Acquisition [Line Items] | |||
Weighted-average estimated useful life (in years) | 15 years | ||
Total intangible assets | $ 297 | ||
AmeriPride | Trade names | |||
Business Acquisition [Line Items] | |||
Weighted-average estimated useful life (in years) | 3 years | ||
AmeriPride | Trade names | Trade names | |||
Business Acquisition [Line Items] | |||
Total intangible assets | $ 24 | ||
Avendra | |||
Business Acquisition [Line Items] | |||
Total intangible assets | $ 789 | ||
Avendra | Trade names | |||
Business Acquisition [Line Items] | |||
Trade name | 222 | ||
Avendra | Customer relationship assets | |||
Business Acquisition [Line Items] | |||
Customer relationship assets | $ 567 | ||
Weighted-average estimated useful life (in years) | 15 years |
Acquisitions and Divestitures_5
Acquisitions and Divestitures (Pro Forma Information) (Details) - AmeriPride and Avendra - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2018 | Sep. 29, 2017 | |
Business Acquisition [Line Items] | ||
Total revenue | $ 16,014,463 | $ 15,378,832 |
Net income | $ 624,334 | $ 328,932 |
Severance (Details)
Severance (Details) - Employee Severance and Other Costs - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Severance and Related Costs Accrual Beginning Balance | $ 16.6 | ||
Net Charges | 18.7 | $ 36.6 | $ 18.4 |
Payments and Other | (23.4) | ||
Severance and Related Costs Accrual Ending Balance | $ 11.9 | $ 16.6 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill decrease from divestiture | $ (61,707) | |||
Amortization of intangible assets | 117,000 | $ 112,100 | $ 87,900 | |
Food and Support Services - International | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill, fair value | 282,300 | |||
Goodwill decrease from divestiture | 16,135 | |||
Customer relationship assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 28,500 | 887,500 | ||
Weighted-average estimated useful life (in years) | 14 years | |||
Customer relationship assets | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, useful life | 9 years | |||
Customer relationship assets | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, useful life | 24 years | |||
Trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Indefinite-lived Intangible Assets Acquired | $ 4,400 | $ 246,000 | ||
Healthcare Technologies | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill decrease from divestiture | $ 87,000 | |||
Goodwill | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Percentage of fair value in excess of carrying amount | 22.00% |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets - Schedule of Goodwill Assets by Segment (Details) $ in Thousands | 12 Months Ended |
Sep. 27, 2019USD ($) | |
Goodwill [Roll Forward] | |
September 28, 2018 | $ 5,610,568 |
Acquisitions and Divestitures | (61,707) |
Translation and Other | (30,061) |
September 27, 2019 | 5,518,800 |
FSS United States | |
Goodwill [Roll Forward] | |
September 28, 2018 | 4,028,454 |
Acquisitions and Divestitures | (81,823) |
Translation and Other | 2,587 |
September 27, 2019 | 3,949,218 |
FSS International | |
Goodwill [Roll Forward] | |
September 28, 2018 | 626,379 |
Acquisitions and Divestitures | 16,135 |
Translation and Other | (34,046) |
September 27, 2019 | 608,468 |
Uniform | |
Goodwill [Roll Forward] | |
September 28, 2018 | 955,735 |
Acquisitions and Divestitures | 3,981 |
Translation and Other | 1,398 |
September 27, 2019 | $ 961,114 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets - Schedule of other intangible assets (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Other Intangible Assets | ||
Gross Amount | $ 3,231,451 | $ 3,295,040 |
Accumulated Amortization | (1,197,885) | (1,158,196) |
Net Amount | 2,033,566 | 2,136,844 |
Customer relationship assets | ||
Other Intangible Assets | ||
Gross Amount | 2,183,492 | 2,244,215 |
Accumulated Amortization | (1,193,525) | (1,156,811) |
Net Amount | 989,967 | 1,087,404 |
Trade names | ||
Other Intangible Assets | ||
Gross Amount | 1,047,959 | 1,050,825 |
Accumulated Amortization | (4,360) | (1,385) |
Net Amount | $ 1,043,599 | $ 1,049,440 |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets - Schedule of expected amortization expense (Details) $ in Thousands | Sep. 27, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 113,136 |
2021 | 105,929 |
2022 | 85,709 |
2023 | 78,843 |
2024 | $ 78,464 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Borrowings (Details) | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | Jan. 18, 2018 | Mar. 27, 2017EUR (€) | Mar. 22, 2017USD ($) | May 31, 2016USD ($) | Dec. 17, 2015USD ($) |
Debt Instrument [Line Items] | |||||||
Capital Lease Obligations | $ 148,754,000 | $ 143,388,000 | |||||
Other Long-term Debt | 7,589,000 | 4,494,000 | |||||
Debt and Lease Obligation | 6,682,167,000 | 7,243,984,000 | |||||
Less—current portion | (69,928,000) | (30,907,000) | |||||
Long-Term Borrowings | 6,612,239,000 | 7,213,077,000 | |||||
Foreign | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 881,900,000 | ||||||
Receivables Facility, due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | 0 | |||||
Secured Debt | Senior secured revolving credit facility, due October 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 51,410,000 | 77,000,000 | |||||
Secured Debt | Senior secured term loan facility, due October 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 507,887,000 | 538,674,000 | |||||
Secured Debt | Senior secured term loan facility, due March 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 829,344,000 | 1,325,923,000 | |||||
Secured Debt | Senior secured term loan facility, due March 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 1,658,026,000 | 1,656,919,000 | |||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,000,000,000 | ||||||
Senior Notes | 5.125% Senior Notes, Due January 15, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 902,351,000 | 902,908,000 | $ 500,000,000 | $ 400,000,000 | |||
Stated interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |||
Senior Notes | 5.000% Senior Notes, Due April 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 592,087,000 | 590,884,000 | $ 600,000,000 | ||||
Stated interest rate | 5.00% | 5.00% | |||||
Senior Notes | 3.125% Senior Notes, Due April 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 352,363,000 | 373,240,000 | € 325,000,000 | ||||
Stated interest rate | 3.125% | 3.125% | |||||
Senior Notes | 4.75% Senior Notes, Due June 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 494,731,000 | 494,082,000 | $ 500,000,000 | ||||
Stated interest rate | 4.75% | 4.75% | 4.75% | ||||
Senior Notes | 5.000% Senior Notes, Due February 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,137,625,000 | $ 1,136,472,000 | |||||
Stated interest rate | 5.00% | 5.00% |
Borrowings - Senior Secured Cre
Borrowings - Senior Secured Credit Agreement Narrative (Details) € in Millions, ¥ in Millions, $ in Millions | 12 Months Ended | |||||
Sep. 27, 2019EUR (€) | Sep. 27, 2019USD ($) | Sep. 27, 2019CAD ($) | Sep. 27, 2019JPY (¥) | Dec. 28, 2018 | Sep. 28, 2018USD ($) | |
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated secured debt ratio | 5.125 | 5.125 | 5.125 | 5.125 | ||
Senior secured term loan facility, due March 2024 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 829,344,000 | $ 1,325,923,000 | ||||
Senior secured term loan facility, due March 2024 | Secured Debt | US Denominated Term Loan, Aramark Services, Inc. Due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 829,300,000 | |||||
Revolving Credit Facility | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 51,410,000 | 77,000,000 | ||||
Revolving Credit Facility | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 1,000,000,000 | |||||
Revolving Credit Facility | Line of Credit | Senior Secured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | 897,800,000 | |||||
Maximum borrowing capacity | 250,000,000 | |||||
Secured Debt | 2017 Amendment Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 1,400,000,000 | |||||
Secured Debt | Foreign Line of Credit | 2017 Amendment Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 150,000,000 | |||||
Senior secured term loan facility, due March 2025 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 1,658,026,000 | 1,656,919,000 | ||||
Senior secured term loan facility, due March 2025 | Secured Debt | US Denominated Term Loan, Aramark Services, Inc. Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 1,658,000,000 | |||||
Term Loan Facility Due October 2023 | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 507,887,000 | $ 538,674,000 | ||||
Term Loan Facility Due October 2023 | Secured Debt | YEN Denominated Term Loan, Aramark Services, Inc. Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 96,200,000 | ¥ 10,378.1 | ||||
Term Loan Facility Due October 2023 | Secured Debt | Canadian Denominated Term Loan, Aramark Canada Ltd. Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 275,700,000 | $ 365.3 | ||||
Term Loan Facility Due October 2023 | Secured Debt | Euro Denominated Term Loan, Aramark Investments Liminted, Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | € 124.4 | $ 136,000,000 | ||||
Term Loan Facility Due October 2023 | Secured Debt | Yen denominated term loans | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | ¥ | ¥ 10,378.1 | |||||
Term Loan Facility Due October 2023 | Secured Debt | Euro Denominated Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | € | € 124.4 | |||||
Base Rate | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, minimum interest rate | 0.00% | 0.00% | 0.00% | 0.00% | ||
Minimum | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument fee, effective rate | 0.15% | 0.15% | 0.15% | 0.15% | 0.25% | |
Minimum | Base Rate | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.125% | |||||
Maximum | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument fee, effective rate | 0.30% | 0.30% | 0.30% | 0.30% | 0.40% | |
Maximum | Secured Debt | 2017 Amendment Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated secured debt ratio | 3 | 3 | 3 | 3 | ||
Maximum | Base Rate | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.625% |
Borrowings - Fiscal 2018 Refina
Borrowings - Fiscal 2018 Refinancing Transactions Narrative (Details) | 12 Months Ended | ||||
Sep. 27, 2019USD ($)financial_institution | Sep. 28, 2018USD ($) | Jan. 18, 2018USD ($) | Dec. 11, 2017USD ($) | May 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Number of financial institutions | financial_institution | 3 | ||||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Consolidated secured debt ratio | 5.125 | ||||
Secured Debt | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Effective rate | 0.375% | ||||
Debt instrument, minimum interest rate | 0.00% | ||||
Secured Debt | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.625% | ||||
Secured Debt | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.125% | ||||
Secured Debt | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | |||||
Debt Instrument [Line Items] | |||||
Effective rate | 1.375% | ||||
Debt instrument, minimum interest rate | 0.00% | ||||
Secured Debt | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.625% | ||||
Secured Debt | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.125% | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Effective rate | 4.60% | ||||
Long-term debt | $ 1,000,000,000 | ||||
Senior Notes | 5.000% Senior Notes, Due February 2028 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 1,150,000,000 | ||||
Stated interest rate | 5.00% | 5.00% | |||
Redemption price, percentage | 105.00% | ||||
Long-term debt | $ 1,137,625,000 | $ 1,136,472,000 | |||
Senior Notes | 5.000% Senior Notes, Due February 2028 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Percentage of principal amount redeemed | 40.00% | ||||
Senior Notes | 5.000% Senior Notes, Due February 2028 | Period One | |||||
Debt Instrument [Line Items] | |||||
Redemption price, percentage | 100.00% | ||||
Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, minimum interest rate | 0.00% | ||||
Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, minimum interest rate | 0.00% | ||||
Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.75% | ||||
Receivables Facility, due May 2021 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Additional seasonal borrowing capacity | 100,000,000 | ||||
Senior secured revolving credit facility, due October 2023 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Proceeds from lines of credit | 200,000,000 | ||||
Senior secured revolving credit facility, due October 2023 | Line of Credit | Senior Secured Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 250,000,000 | ||||
Remaining borrowing capacity | 897,800,000 | ||||
Senior secured revolving credit facility, due October 2023 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 51,410,000 | 77,000,000 | |||
Term Loan Facility, US Term Loan A, Due 2022 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | 633,800,000 | ||||
Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,785,000,000 | ||||
Payments of financing costs | 8,900,000 | ||||
Interest and Other Financing Costs, Net | Term Loan Facility, US Term Loan A, Due 2022 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Write off of deferred debt issuance cost | $ 5,700,000 |
Borrowings - Fiscal 2017 Refina
Borrowings - Fiscal 2017 Refinancing Transactions Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 28, 2018USD ($) | Sep. 27, 2019USD ($) | Mar. 27, 2017EUR (€) | Mar. 22, 2017USD ($) | May 31, 2016USD ($) | |
Receivables Facility, due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | $ 0 | |||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,000,000,000 | ||||||
Senior Notes | 5.000% Senior Notes, Due April 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 590,884,000 | $ 592,087,000 | $ 600,000,000 | ||||
Stated interest rate | 5.00% | 5.00% | |||||
Senior Notes | 3.125% Senior Notes, Due April 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 373,240,000 | $ 352,363,000 | € 325,000,000 | ||||
Stated interest rate | 3.125% | 3.125% | |||||
Senior Notes | 5.75% Senior Notes, Due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 5.75% | 5.75% | 5.75% | ||||
Senior Notes | Term Loan Facility, Due 2019 and Term Loan Facility, Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Write off of deferred debt issuance cost | $ 25,200,000 | ||||||
Revolving Credit Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 77,000,000 | $ 51,410,000 | |||||
Revolving Credit Facility | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||||
Interest and Other Financing Costs, Net | Senior Notes | 5.75% Senior Notes, Due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Payments of financing costs | $ 3,300,000 | ||||||
Interest and Other Financing Costs, Net | Senior Notes | 5.75% Senior Notes, Due March 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | $ 28,500,000 | ||||||
Interest and Other Financing Costs, Net | Term Loan Facility, US Term Loan A, Due 2022 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Write off of deferred debt issuance cost | $ 5,700,000 |
Borrowings - Prepayments and Am
Borrowings - Prepayments and Amortization Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Term Loan Facilities | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 500,000,000 | $ 260,400,000 | $ 330,600,000 |
Term Loan Facility, US Term Loan B, Due 2024 | Secured Debt | |||
Debt Instrument [Line Items] | |||
Prepayment premium, percent | 1.00% | ||
Secured Debt | 2017 Amendment Agreement | |||
Debt Instrument [Line Items] | |||
Senior secured credit agreement requires prepayment of outstanding loans with all net cash proceeds of all nonordinary course asset sales | 100.00% | ||
Senior secured credit agreement requires prepayment with all net cash proceeds of any incurrence of debt | 100.00% | ||
Aramark Services, Inc. | Secured Debt | 2017 Amendment Agreement | |||
Debt Instrument [Line Items] | |||
Senior secured credit agreement requires prepayment of outstanding loans with percent of annual excess cash flow, initial rate | 50.00% | ||
Senior secured credit agreement requires prepayment of outstanding loans with percent of annual excess cash flow, stepdown rate | 25.00% | ||
Senior secured credit agreement requires prepayment of outstanding loans with percent of annual excess cash flow, final stepdown rate | 0.00% | ||
Minimum | Secured Debt | 2017 Amendment Agreement | |||
Debt Instrument [Line Items] | |||
Agreement terms, prepayment of outstanding term loans, annual cash flow threshold | $ 100,000,000 | ||
Minimum | Aramark Services, Inc. | Secured Debt | 2017 Amendment Agreement | |||
Debt Instrument [Line Items] | |||
Agreement terms, prepayment of outstanding term loans, annual cash flow threshold | $ 10,000,000 | ||
Period One | Canadian denominated term loan | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 1.25% | ||
Period One | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 1.25% | ||
Period Two | Canadian denominated term loan | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 1.25% | ||
Period Two | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 1.25% | ||
Period Three | Canadian denominated term loan | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 1.88% | ||
Period Three | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 1.75% | ||
Period Four | Canadian denominated term loan | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 2.50% | ||
Period Four | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 2.50% | ||
Period Five | Canadian denominated term loan | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 3.75% | ||
Period Five | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||
Debt Instrument [Line Items] | |||
Percentage of term loan principal repaid quarterly | 3.75% |
Borrowings - Guarantees and Cer
Borrowings - Guarantees and Certain Covenants (Details) | 12 Months Ended |
Sep. 27, 2019 | |
Secured Debt | |
Debt Instrument [Line Items] | |
Consolidated secured debt ratio | 5.125 |
Consolidated secured debt ratio actual | 1.78 |
Debt instrument, covenant, interest coverage ratio | 2 |
Debt instrument, covenant, interest coverage ratio, actual | 5.02 |
Aramark Services, Inc. (Issuer) | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 100.00% |
Foreign Subsidiaries | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 100.00% |
Common Stock | Foreign Subsidiaries | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 65.00% |
Nonvoting Common Stock | Foreign Subsidiaries | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 100.00% |
5.000% Senior Notes, Due February 2028 | Senior Notes | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 105.00% |
5.000% Senior Notes, Due February 2028 | Maximum | Senior Notes | |
Debt Instrument [Line Items] | |
Percentage of principal amount redeemed | 40.00% |
Period One | 5.000% Senior Notes, Due February 2028 | Senior Notes | |
Debt Instrument [Line Items] | |
Redemption price, percentage | 100.00% |
Borrowings - Senior Notes Narra
Borrowings - Senior Notes Narrative (Details) | Dec. 17, 2015USD ($) | Sep. 27, 2019USD ($) | Mar. 29, 2019USD ($) | Sep. 28, 2018USD ($) | Jan. 18, 2018USD ($) | Jun. 30, 2017 | Mar. 27, 2017EUR (€) | Mar. 22, 2017USD ($) | May 31, 2016USD ($) |
Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 1,000,000,000 | ||||||||
Debt premium | $ 18,800,000 | ||||||||
Effective rate | 4.60% | ||||||||
5.000% Senior Notes, Due February 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 1,150,000,000 | ||||||||
Long-term debt | $ 1,137,625,000 | $ 1,136,472,000 | |||||||
Stated interest rate | 5.00% | 5.00% | |||||||
Redemption price, percentage | 105.00% | ||||||||
5.000% Senior Notes, Due April 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 592,087,000 | 590,884,000 | $ 600,000,000 | ||||||
Stated interest rate | 5.00% | 5.00% | |||||||
3.125% Senior Notes, Due April 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 352,363,000 | 373,240,000 | € 325,000,000 | ||||||
Stated interest rate | 3.125% | 3.125% | |||||||
5.000% Senior Notes, Due April 2025 And 3.125% Senior Notes Due April 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Optional redemption price, percentage | 101.00% | ||||||||
5.75% Senior Notes, Due 2020 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 5.75% | 5.75% | |||||||
5.125% Senior Notes, Due January 15, 2024 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 400,000,000 | $ 902,351,000 | 902,908,000 | $ 500,000,000 | |||||
Stated interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |||||
Payments of financing costs | $ 6,000,000 | ||||||||
Debt premium | $ 10,000,000 | ||||||||
4.75% Senior Notes, Due June 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 494,731,000 | $ 494,082,000 | $ 500,000,000 | ||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | ||||||
5.125% Senior Notes, Due 2024 and 4.75% Senior Notes, Due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Optional redemption price, percentage | 101.00% | ||||||||
Long-term borrowings | 5.000% Senior Notes, Due February 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization of debt issuance costs | $ 14,200,000 | ||||||||
Period One | 5.000% Senior Notes, Due February 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, percentage | 100.00% | ||||||||
Maximum | 5.000% Senior Notes, Due February 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of principal amount redeemed | 40.00% |
Borrowings - Fiscal 2016 Refina
Borrowings - Fiscal 2016 Refinancing Transactions Narrative (Details) - USD ($) | Dec. 17, 2015 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Jun. 30, 2017 | Mar. 22, 2017 | May 31, 2016 |
Debt Instrument [Line Items] | |||||||
Interest paid | $ 306,200,000 | $ 307,100,000 | $ 201,700,000 | ||||
Interest and other financing costs, net | 334,987,000 | 346,535,000 | $ 280,985,000 | ||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,000,000,000 | ||||||
Debt premium | $ 18,800,000 | ||||||
Effective rate | 4.60% | ||||||
Senior Notes | 5.125% Senior Notes, Due January 15, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 400,000,000 | $ 902,351,000 | 902,908,000 | $ 500,000,000 | |||
Stated interest rate | 5.125% | 5.125% | 5.125% | 5.125% | |||
Payments of financing costs | $ 6,000,000 | ||||||
Debt premium | $ 10,000,000 | ||||||
Senior Notes | 4.75% Senior Notes, Due June 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 494,731,000 | $ 494,082,000 | $ 500,000,000 | ||||
Stated interest rate | 4.75% | 4.75% | 4.75% | ||||
Senior Notes | 5.75% Senior Notes, Due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 5.75% | 5.75% |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Maturities (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | May 31, 2016 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 | $ 69,928 | |
2021 | 69,936 | |
2022 | 72,695 | |
2023 | 93,736 | |
2024 | 2,106,525 | |
Thereafter | 4,307,650 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt premium | $ 18,800 | |
Senior Notes | 5.125% Senior Notes, Due January 15, 2024 | ||
Debt Instrument [Line Items] | ||
Debt premium | 10,000 | |
Term Loan Facilities | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt discount | $ 48,300 |
Borrowings - Schedule of Intere
Borrowings - Schedule of Interest and Other Financing Costs Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 352,812 | $ 353,048 | $ 285,995 |
Interest income | (28,985) | (16,964) | (12,372) |
Other financing costs | 11,160 | 10,451 | 7,362 |
Total | $ 334,987 | $ 346,535 | $ 280,985 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) $ in Thousands, € in Millions, ¥ in Millions, £ in Millions, gal in Millions, $ in Millions | 12 Months Ended | |||||||
Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) | Sep. 27, 2019EUR (€)gal | Sep. 27, 2019USD ($)gal | Sep. 27, 2019CAD ($)gal | Sep. 27, 2019GBP (£)gal | Sep. 27, 2019JPY (¥)gal | |
Derivative [Line Items] | ||||||||
Cash flow hedge gains (losses) | $ 36,192 | $ (31,056) | ||||||
Pretax gain recorded (not material in fiscal 2018 and 2017) | $ 171 | 2,242 | $ (14,443) | |||||
Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Pretax gain recorded (not material in fiscal 2018 and 2017) | (6,313) | 7,427 | 2,163 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Gain on cash flow hedge to be reclassified within twelve months | 10,000 | |||||||
Interest rate swap agreements | Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 2,500,000 | |||||||
Interest rate swap agreements | Cash Flow Hedging | Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | 500,000 | |||||||
Notional amount of matured hedges | 575,000 | |||||||
Cash flow hedge gains (losses) | 36,200 | $ (31,100) | ||||||
Gasoline and diesel fuel agreements | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Nonmonetary notional amount of derivative (in gallons) | gal | 18.6 | 18.6 | 18.6 | 18.6 | 18.6 | |||
Pretax gain recorded (not material in fiscal 2018 and 2017) | $ 4,100 | 0 | 0 | |||||
Foreign exchange forward | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Notional amount of derivative | € 72.6 | $ 30 | £ 7.5 | |||||
Interest and Other Financing Costs, Net | Interest rate swap agreements | Cash Flow Hedging | Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on discontinuation of cash flow Hedge due to forecasted transaction probable of not occurring, net | $ 2,900 | |||||||
Term Loan Facility Due October 2023 | Secured Debt | ||||||||
Derivative [Line Items] | ||||||||
Long-term debt | $ 538,674 | $ 507,887 | ||||||
Yen denominated term loans | Term Loan Facility Due October 2023 | Secured Debt | ||||||||
Derivative [Line Items] | ||||||||
Long-term debt | ¥ | ¥ 10,378.1 | |||||||
Euro Denominated Term Loan | Term Loan Facility Due October 2023 | Secured Debt | ||||||||
Derivative [Line Items] | ||||||||
Long-term debt | € | € 124.4 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Derivative [Line Items] | |||
Gain (Loss) recognized in other comprehensive income | $ (84,392) | $ 55,445 | $ 31,884 |
Cash Flow Hedging | Interest rate swap agreements | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in other comprehensive income | $ (84,392) | $ 55,445 | $ 31,884 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Derivative Instruments, Balance Sheet Presentation (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Derivative instruments | ||
Fair value of derivative assets | $ 64 | $ 59,999 |
Fair value of derivative liabilities | 43,574 | 0 |
Designated as Hedging Instrument | Interest rate swap agreements | Prepayments and other current assets | ||
Derivative instruments | ||
Fair value of derivative assets | 0 | 1,459 |
Designated as Hedging Instrument | Interest rate swap agreements | Prepaid rent | ||
Derivative instruments | ||
Fair value of derivative assets | 0 | 54,708 |
Designated as Hedging Instrument | Interest rate swap agreements | Other noncurrent liabilities | ||
Derivative instruments | ||
Fair value of derivative liabilities | 43,112 | 0 |
Not Designated as Hedging Instrument | Foreign currency forward exchange contracts | Prepayments and other current assets | ||
Derivative instruments | ||
Fair value of derivative assets | 64 | 209 |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | Prepayments and other current assets | ||
Derivative instruments | ||
Fair value of derivative assets | 0 | 3,623 |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | Accounts Payable | ||
Derivative instruments | ||
Fair value of derivative liabilities | $ 462 | $ 0 |
Derivative Instruments - Sche_3
Derivative Instruments - Schedule Summarizes the Location of (Gain) Loss Reclassified from AOCI Into Earnings for Derivatives Designated as Hedging Instruments and the Location of (Gain) Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Derivative instruments | |||
(Gain) loss reclassified recognized in income | $ (171) | $ (2,242) | $ 14,443 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap agreements | Interest expense | |||
Derivative instruments | |||
(Gain) loss reclassified from AOCI | (6,484) | 5,185 | 16,606 |
Not Designated as Hedging Instrument | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | 6,313 | (7,427) | (2,163) |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | (4,100) | 0 | 0 |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | Cost of services provided | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | 6,168 | (7,360) | (1,277) |
Not Designated as Hedging Instrument | Foreign exchange forward | Interest expense | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | $ 145 | $ (67) | $ (886) |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation Narrative (Details) | Sep. 27, 2019performance_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 | 12 Months Ended | ||||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Capitalized contract acquisition cost | $ 109,401 | $ 0 | $ 109,401 | $ 0 | ||||||||
Revenue | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | 3,913,598 | $ 3,971,606 | $ 3,939,311 | $ 3,965,118 | $ 16,227,341 | 15,789,633 | $ 14,604,412 | |
Incremental and recoverable costs of obtaining contract, amortization period | 8 years 6 months | 8 years 6 months | ||||||||||
Property and Equipment, net | $ 2,181,762 | 1,378,094 | $ 2,181,762 | 1,378,094 | ||||||||
Long-term prepaid rent | 166,931 | 0 | 166,931 | 0 | ||||||||
Inventories | 1,343,806 | $ 1,693,171 | 1,343,806 | 1,693,171 | ||||||||
Uniform | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Revenue | 2,585,800 | $ 1,996,000 | $ 1,564,700 | |||||||||
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 | (317,497) | |||||||||||
Property and Equipment, net | (785,360) | (785,360) | ||||||||||
Inventories | 307,419 | 307,419 | ||||||||||
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 | 358,600 | |||||||||||
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 | 111,000 | 111,000 | $ 97,200 | |||||||||
Property and Equipment, net | 785,400 | 785,400 | ||||||||||
Long-term prepaid rent | 166,900 | 166,900 | ||||||||||
Costs to Fulfill | 109,400 | 109,400 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Inventories | Accounting Standards Update 2014-09 | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Inventories | 356,900 | 356,900 | ||||||||||
Depreciation and Amortization | Accounting Standards Update 2014-09 | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Cost of services provided in the period | $ 149,000 | 20,500 | ||||||||||
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 | 20,000 | |||||||||||
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 | 318,200 | |||||||||||
Cost of services provided | Prepaid rent | Accounting Standards Update 2014-09 | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Cost of services provided in the period | $ 16,000 | |||||||||||
Minimum | Uniform | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Estimated useful lives | 1 year | |||||||||||
Maximum | Uniform | ||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||||||||
Estimated useful lives | 4 years |
Revenue Recognition - Effect on
Revenue Recognition - Effect on Statement of Financial Position (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | $ 246,643 | $ 215,025 | $ 238,797 | $ 152,580 |
Receivables (less allowances: 2019 - $49,566; 2018 - $52,682) | 1,806,964 | 1,790,433 | ||
Inventories | 411,319 | 724,802 | ||
Prepayments and other current assets | 193,461 | 171,165 | ||
Total current assets | 2,658,387 | 2,901,425 | ||
Property and Equipment, net | 2,181,762 | 1,378,094 | ||
Goodwill | 5,518,800 | 5,610,568 | ||
Other Intangible Assets | 2,033,566 | 2,136,844 | ||
Other Assets | 1,343,806 | 1,693,171 | ||
Assets | 13,736,321 | 13,720,102 | ||
Current maturities of long-term borrowings | 69,928 | 30,907 | ||
Accounts payable | 999,517 | 1,018,920 | ||
Accrued expenses and other current liabilities | 1,635,853 | |||
Total current liabilities | 2,705,298 | 2,490,159 | ||
Long-Term Borrowings | 6,612,239 | 7,213,077 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,088,822 | 977,215 | ||
Redeemable Noncontrolling Interest | 9,915 | 10,093 | ||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—282,919,536 shares and 2018—279,314,297; and outstanding: 2019—247,756,091 shares and 2018—246,744,438 shares) | 2,829 | 2,793 | ||
Capital surplus | 3,236,450 | 3,132,421 | ||
Retained earnings | 1,107,029 | 710,519 | ||
Accumulated other comprehensive loss | (216,965) | (91,223) | ||
Treasury stock (shares held in treasury: 2019—35,163,445 shares and 2018—32,569,859 shares) | (809,296) | (724,952) | ||
Total stockholders' equity | 3,320,047 | 3,029,558 | ||
Liabilities and Stockholders’ Equity | 13,736,321 | $ 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 - $49,566; 2018 - $52,682) | 0 | |||
Inventories | 356,853 | |||
Prepayments and other current assets | 0 | |||
Total current assets | 356,853 | |||
Property and Equipment, net | (785,360) | |||
Goodwill | 0 | |||
Other Intangible Assets | 0 | |||
Other Assets | 307,419 | |||
Assets | (121,088) | |||
Current maturities of long-term borrowings | 0 | |||
Accounts payable | 0 | |||
Accrued expenses and other current liabilities | (26,665) | |||
Total current liabilities | (26,665) | |||
Long-Term Borrowings | 0 | |||
Deferred Income Taxes and Other Noncurrent Liabilities | (25,525) | |||
Redeemable Noncontrolling Interest | 0 | |||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—282,919,536 shares and 2018—279,314,297; and outstanding: 2019—247,756,091 shares and 2018—246,744,438 shares) | 0 | |||
Capital surplus | 0 | |||
Retained earnings | (68,898) | |||
Accumulated other comprehensive loss | 0 | |||
Treasury stock (shares held in treasury: 2019—35,163,445 shares and 2018—32,569,859 shares) | 0 | |||
Total stockholders' equity | (68,898) | |||
Liabilities and Stockholders’ Equity | (121,088) | |||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Cash and cash equivalents | 246,643 | |||
Receivables (less allowances: 2019 - $49,566; 2018 - $52,682) | 1,806,964 | |||
Inventories | 768,172 | |||
Prepayments and other current assets | 193,461 | |||
Total current assets | 3,015,240 | |||
Property and Equipment, net | 1,396,402 | |||
Goodwill | 5,518,800 | |||
Other Intangible Assets | 2,033,566 | |||
Other Assets | 1,651,225 | |||
Assets | 13,615,233 | |||
Current maturities of long-term borrowings | 69,928 | |||
Accounts payable | 999,517 | |||
Accrued expenses and other current liabilities | 1,609,188 | |||
Total current liabilities | 2,678,633 | |||
Long-Term Borrowings | 6,612,239 | |||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,063,297 | |||
Redeemable Noncontrolling Interest | 9,915 | |||
Common stock, par value $.01 (authorized: 600,000,000 shares; issued: 2019—282,919,536 shares and 2018—279,314,297; and outstanding: 2019—247,756,091 shares and 2018—246,744,438 shares) | 2,829 | |||
Capital surplus | 3,236,450 | |||
Retained earnings | 1,038,131 | |||
Accumulated other comprehensive loss | (216,965) | |||
Treasury stock (shares held in treasury: 2019—35,163,445 shares and 2018—32,569,859 shares) | (809,296) | |||
Total stockholders' equity | 3,251,149 | |||
Liabilities and Stockholders’ Equity | $ 13,615,233 |
Revenue Recognition - Effect _2
Revenue Recognition - Effect on Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 3,913,598 | $ 3,971,606 | $ 3,939,311 | $ 3,965,118 | $ 16,227,341 | $ 15,789,633 | $ 14,604,412 |
Costs and Expenses: | |||||||||||
Cost of services provided | 14,532,662 | 13,997,911 | 12,995,403 | ||||||||
Depreciation and amortization | 592,573 | 596,182 | 508,212 | ||||||||
Selling and general corporate expenses | 367,256 | 377,129 | 299,170 | ||||||||
Gain on sale of Healthcare Technologies | (156,309) | 0 | 0 | ||||||||
Cost of services provided | 3,503,280 | 3,594,978 | 3,639,959 | 3,794,445 | 3,386,380 | 3,526,293 | 3,563,009 | 3,522,230 | 15,336,182 | 14,971,222 | 13,802,785 |
Operating Income | 891,159 | 818,411 | 801,627 | ||||||||
Interest and other financing costs, net | 334,987 | 346,535 | 280,985 | ||||||||
Income Before Income Taxes | 556,172 | 471,876 | 520,642 | ||||||||
Provision (Benefit) for Income Taxes | 107,706 | (96,564) | 146,455 | ||||||||
Net income (loss) | 448,466 | 568,440 | 374,187 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83) | 555 | 264 | ||||||||
Net income attributable to Aramark stockholders | $ 85,557 | $ 82,955 | $ 29,353 | $ 250,682 | $ 175,455 | $ 72,577 | $ 27,569 | $ 292,284 | 448,549 | $ 567,885 | $ 373,923 |
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 | (317,497) | ||||||||||
Costs and Expenses: | |||||||||||
Cost of services provided | (322,411) | ||||||||||
Depreciation and amortization | 18,581 | ||||||||||
Selling and general corporate expenses | 0 | ||||||||||
Gain on sale of Healthcare Technologies | 0 | ||||||||||
Cost of services provided | (303,830) | ||||||||||
Operating Income | (13,667) | ||||||||||
Interest and other financing costs, net | 0 | ||||||||||
Income Before Income Taxes | (13,667) | ||||||||||
Provision (Benefit) for Income Taxes | (3,554) | ||||||||||
Net income (loss) | (10,113) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | ||||||||||
Net income attributable to Aramark stockholders | (10,113) | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 | |||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||
Revenue | 15,909,844 | ||||||||||
Costs and Expenses: | |||||||||||
Cost of services provided | 14,210,251 | ||||||||||
Depreciation and amortization | 611,154 | ||||||||||
Selling and general corporate expenses | 367,256 | ||||||||||
Gain on sale of Healthcare Technologies | (156,309) | ||||||||||
Cost of services provided | 15,032,352 | ||||||||||
Operating Income | 877,492 | ||||||||||
Interest and other financing costs, net | 334,987 | ||||||||||
Income Before Income Taxes | 542,505 | ||||||||||
Provision (Benefit) for Income Taxes | 104,152 | ||||||||||
Net income (loss) | 438,353 | ||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83) | ||||||||||
Net income attributable to Aramark stockholders | $ 438,436 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 3,913,598 | $ 3,971,606 | $ 3,939,311 | $ 3,965,118 | $ 16,227,341 | $ 15,789,633 | $ 14,604,412 |
Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 12,070,000 | 11,795,600 | 11,098,000 | ||||||||
FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 9,898,600 | 10,137,800 | 9,748,000 | ||||||||
FSS United States | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 9,898,600 | ||||||||||
FSS United States | Business & Industry | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,587,000 | ||||||||||
FSS United States | Education | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,228,800 | ||||||||||
FSS United States | Healthcare | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 933,500 | ||||||||||
FSS United States | Sports, Leisure & Corrections | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,557,500 | ||||||||||
FSS United States | Facilities & Other | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,591,800 | ||||||||||
FSS International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,742,900 | 3,655,800 | 3,291,700 | ||||||||
FSS International | Total FSS International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,742,900 | ||||||||||
FSS International | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,044,400 | ||||||||||
FSS International | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,698,500 | ||||||||||
Uniform | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,585,800 | $ 1,996,000 | $ 1,564,700 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Income (Details) $ in Millions | 12 Months Ended |
Sep. 27, 2019USD ($) | |
Movement in Deferred Income [Roll Forward] | |
Deferred income beginning balance | $ 281.5 |
Deferred income ending balance | 319 |
Accounting Standards Update 2014-09 | |
Movement in Deferred Income [Roll Forward] | |
Add: Net increase in current period deferred income | 1,364.3 |
Less: Recognition of deferred income | $ (1,326.8) |
Employee Pension and Profit S_3
Employee Pension and Profit Sharing Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 398.8 | $ 364 | |
Settlement gains recognized in other comprehensive loss, before tax | 0.1 | 3.9 | |
Actuarial losses recognized in other comprehensive loss, before tax | 32.9 | 22.2 | |
Amortization of actuarial gains (losses) recognized as net periodic pension cost | 1.2 | 1.6 | |
Net actuarial gain (loss) included in accumulated other comprehensive income (loss) to be recognized in next fiscal year | 1.8 | ||
Expected future employer contributions during fiscal year 2017 | $ 4.1 | ||
Equity Funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 35.00% | ||
Equity Funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 65.00% | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution cost recognized | $ 41.5 | 22.5 | $ 27.5 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution cost recognized | $ 11.7 | $ 8.6 | $ 6.9 |
Minimum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 0.00% | ||
Minimum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 70.00% | ||
Minimum | Real Estate and Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 0.00% | ||
Maximum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 20.00% | ||
Maximum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 100.00% | ||
Maximum | Real Estate and Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 10.00% |
Employee Pension and Profit S_4
Employee Pension and Profit Sharing Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 6,391 | $ 7,121 | $ 8,834 |
Interest cost | 11,287 | 10,579 | 8,398 |
Expected return on plan assets | (22,970) | (22,864) | (18,350) |
Settlements and curtailments | 283 | 3,312 | 0 |
Amortization of prior service cost | 104 | 116 | 122 |
Recognized net loss | 1,094 | 1,646 | 3,400 |
Net periodic pension cost (income) | $ (3,811) | $ (90) | $ 2,404 |
Employee Pension and Profit S_5
Employee Pension and Profit Sharing Plans - Schedule of Defined Benefit Plans Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Change in benefit obligation [Roll Forward]: | |||
Benefit obligation, beginning | $ 366,426 | $ 333,672 | |
Impact of AmeriPride acquisition | 0 | 79,605 | |
Foreign currency translation | (13,097) | (11,312) | |
Service cost | 6,391 | 7,121 | $ 8,834 |
Interest cost | 11,287 | 10,579 | 8,398 |
Employee contributions | 2,249 | 2,571 | |
Actuarial loss (gain) | 49,707 | (10,869) | |
Benefits paid | (16,681) | (16,862) | |
Settlements and curtailments | (5,075) | (22,662) | |
Change in control payment | 0 | (5,417) | |
Benefit obligation, ending | 401,207 | 366,426 | 333,672 |
Change in plan assets [Roll Forward]: | |||
Fair value of plan assets, beginning | 409,826 | 341,538 | |
Impact of AmeriPride acquisition | 0 | 73,273 | |
Foreign currency translation | (14,360) | (12,359) | |
Employer contributions | 10,520 | 13,988 | |
Employee contributions | 2,249 | 2,571 | |
Actual return on plan assets | 39,280 | 23,971 | |
Benefits paid | (16,681) | (16,862) | |
Settlements | (4,867) | (10,877) | |
Change in control payment | 0 | (5,417) | |
Fair value of plan assets, end | 425,967 | 409,826 | $ 341,538 |
Funded Status at end of year | $ 24,760 | $ 43,400 |
Employee Pension and Profit S_6
Employee Pension and Profit Sharing Plans - Schedule of Amounts Recognized in Balance Sheet Including Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Retirement Benefits [Abstract] | ||
Noncurrent benefit asset (included in Other Assets) | $ 35,459 | $ 59,481 |
Noncurrent benefit liability (included in Other Noncurrent Liabilities) | (10,699) | (16,081) |
Net actuarial loss (included in Accumulated other comprehensive loss before taxes) | $ 77,204 | $ 48,067 |
Employee Pension and Profit S_7
Employee Pension and Profit Sharing Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Assumptions Used to Calculate Pension Expense [Abstract] | ||
Discount rate | 3.30% | 3.20% |
Rate of compensation increase | 2.10% | 2.00% |
Long-term rate of return on assets | 5.70% | 5.80% |
Assumptions Used to Calculate Funded Status [Abstract] | ||
Discount rate | 2.50% | 3.30% |
Rate of compensation increase | 2.10% | 2.10% |
Employee Pension and Profit S_8
Employee Pension and Profit Sharing Plans - Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 10,699 | $ 16,081 |
Accumulated benefit obligation | $ 10,506 | $ 15,935 |
Employee Pension and Profit S_9
Employee Pension and Profit Sharing Plans - Schedule of Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 425,967 | $ 409,826 | $ 341,538 |
Quoted Prices in Active Markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,073 | 32,257 | |
Significant Other Observable Inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 391,469 | 367,124 | |
Significant Unobservable Inputs Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,425 | 10,445 | |
Cash and Cash Equivalents and Other | Quoted Prices in Active Markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19,396 | 20,568 | |
Investment Trusts | Quoted Prices in Active Markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,677 | 11,689 | |
Pooled Funds - Equity | Significant Other Observable Inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 72,074 | 220,853 | |
Pooled Funds - Fixed Income | Significant Other Observable Inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 319,395 | 146,271 | |
Real Estate | Quoted Prices in Active Markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Real Estate | Significant Other Observable Inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Real Estate | Significant Unobservable Inputs Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,425 | 10,445 | |
Fair Value Disclosure | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 425,967 | 409,826 | |
Fair Value Disclosure | Cash and Cash Equivalents and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19,396 | 20,568 | |
Fair Value Disclosure | Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,677 | 11,689 | |
Fair Value Disclosure | Pooled Funds - Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 72,074 | 220,853 | |
Fair Value Disclosure | Pooled Funds - Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 319,395 | 146,271 | |
Fair Value Disclosure | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 10,425 | $ 10,445 |
Employee Pension and Profit _10
Employee Pension and Profit Sharing Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | Sep. 27, 2019USD ($) |
Retirement Benefits [Abstract] | |
Fiscal 2020 | $ 13,601 |
Fiscal 2021 | 14,063 |
Fiscal 2022 | 14,448 |
Fiscal 2023 | 14,819 |
Fiscal 2024 | 15,121 |
Fiscal 2025 – 2029 | $ 81,559 |
Employee Pension and Profit _11
Employee Pension and Profit Sharing Plans - Schedule of Multiemployer Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Service Employees Pension Fund of Upstate New York | |||
Multiepmloyer Plans [Line Items] | |||
Percentage of participants covered by CBA | 60.00% | ||
Local 1102 Retirement Trust | |||
Multiepmloyer Plans [Line Items] | |||
Percentage of participants covered by CBA | 90.00% | ||
SEIU National Industry Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Percentage of participants covered by CBA | 75.00% | ||
Multiemployer Pension Plans | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | $ 33,561 | $ 32,623 | $ 28,689 |
Multiemployer Pension Plans | National Retirement Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 4,130 | 4,147 | 7,541 |
Multiemployer Pension Plans | UNITE HERE Retirement Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 4,531 | 3,686 | |
Multiemployer Pension Plans | Local 1102 Retirement Trust | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 110 | 1,206 | 397 |
Multiemployer Pension Plans | Central States SE and SW Areas Pension Plan | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 4,282 | 4,128 | 3,836 |
Multiemployer Pension Plans | Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 361 | 319 | 336 |
Multiemployer Pension Plans | Local 731 Private Scavengers and Garage Attendants Pension Trust Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 973 | 907 | 898 |
Multiemployer Pension Plans | SEIU National Industry Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 623 | 501 | 429 |
Multiemployer Pension Plans | LUNA National Industrial Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 678 | 620 | 584 |
Multiemployer Pension Plans | Other funds | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | $ 17,873 | $ 17,109 | $ 14,668 |
Income Taxes - Income (loss) fr
Income Taxes - Income (loss) from continuing operations before income taxes by source of income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 418,902 | $ 326,277 | $ 362,783 |
Non-U.S. | 137,270 | 145,599 | 157,859 |
Income Before Income Taxes | $ 556,172 | $ 471,876 | $ 520,642 |
Income Taxes - Provision (benef
Income Taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Current: | |||
Federal | $ 8,781 | $ (48,249) | $ 111,175 |
State and local | 19,966 | 11,356 | 15,455 |
Non-U.S. | 38,456 | 44,618 | 57,681 |
Current | 67,203 | 7,725 | 184,311 |
Deferred: | |||
Federal | 35,251 | (113,475) | (21,956) |
State and local | 7,683 | 7,408 | 3,165 |
Non-U.S. | (2,431) | 1,778 | (19,065) |
Deferred Income Tax Expense (Benefit) | 40,503 | (104,289) | (37,856) |
Income tax provision (benefit) | $ 107,706 | $ (96,564) | $ 146,455 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States statutory income tax rate | 21.00% | 24.50% | 35.00% |
Increase (decrease) in taxes, resulting from: | |||
State income taxes, net of Federal tax benefit | 4.20% | 3.20% | 2.30% |
Foreign taxes(1) | 2.20% | 3.30% | (4.30%) |
Permanent book/tax differences | 0.40% | (1.20%) | (3.80%) |
Uncertain tax positions | 0.00% | (0.30%) | 1.40% |
U.S. Tax Reform - Remeasurement of deferred taxes | 0.00% | (49.30%) | 0.00% |
U.S. Tax Reform - Foreign tax credit valuation allowance | (2.30%) | 2.80% | 0.00% |
Effective Income Tax Rate Reconciliation, Disposition of Business, Percent | (4.40%) | 0.00% | 0.00% |
Tax credits & other | (1.70%) | (3.50%) | (2.50%) |
Effective income tax rate | 19.40% | (20.50%) | 28.10% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 |
Deferred tax liabilities: | |||
Property and equipment | $ 137,293 | $ 126,345 | |
Investments | 11,902 | 12,213 | |
Other intangible assets, including goodwill | 462,637 | 474,263 | |
Cost to fulfill - Rental merchandise in-service | 83,483 | 63,835 | |
Derivatives | 0 | 21,599 | |
Other | 37,309 | 17,450 | |
Gross deferred tax liability | 732,624 | 715,705 | |
Deferred tax assets: | |||
Deferred tax assets: | 11,949 | 0 | |
Insurance | 34,112 | 40,240 | |
Employee compensation and benefits | 113,269 | 136,603 | |
Accruals and allowances | 31,844 | 19,338 | |
Net operating loss/credit carryforwards and other | 56,508 | 60,576 | |
Gross deferred tax asset, before valuation allowances | 247,682 | 256,757 | |
Valuation allowances | (17,532) | (29,023) | $ (11,513) |
Net deferred tax liability | $ 502,474 | $ 487,971 |
Income Taxes - Schedule of Valu
Income Taxes - Schedule of Valuation Allowance Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | $ (29,023) | $ (11,513) |
Additions | (2,330) | (21,101) |
Subtractions | 13,821 | 3,591 |
Balance, end of year | $ (17,532) | $ (29,023) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the beginning and ending amount of gross unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 27, 2019 | Sep. 28, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 29,089 | $ 30,812 |
Additions based on tax positions taken in the current year | 3,713 | 709 |
Additions for tax positions taken in prior years | 6,531 | 1,505 |
Reductions for remeasurements, settlements and payments | (1,484) | (2,368) |
Reductions due to statute expiration | (1,577) | (1,569) |
Balance, end of year | $ 36,272 | $ 29,089 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 29, 2019 | Dec. 28, 2018 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Income Tax [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Payment Arrangement, Percent | 4.00% | ||||
Current taxes receivable | $ 35,100 | $ 7,500 | |||
Accrued taxes | 8,100 | 47,900 | |||
Operating loss carryforwards | 27,400 | ||||
Valuation allowances | 17,532 | 29,023 | $ 11,513 | ||
Foreign tax credit carryforwards | 28,100 | ||||
Tax credit carryforward, Interest | 900 | ||||
Deferred income tax payable | 502,474 | 487,971 | |||
Gross unrecognized tax benefits | 36,272 | 29,089 | $ 30,812 | ||
Unrecognized tax benefits that would impact the effective tax rate | 33,400 | ||||
Adjustment in deferred tax liability | 2,900 | ||||
Accrued for interest and penalties | 5,500 | 4,900 | |||
Income tax penalties and interest expense (immaterial for 2018) | $ 600 | $ 600 | |||
United States statutory income tax rate | 21.00% | 24.50% | 35.00% | ||
Deferred income tax liability, provisional income tax expense (benefit) | $ 237,800 | ||||
Undistributed foreign earnings | $ 184,000 | 86,300 | |||
Tax liability on undistributed foreign earnings | 11,000 | 5,100 | |||
Tranisition tax for accumulated foreign earnings, provisional income tax expense | 27,200 | ||||
Foreign tax credit carryforward, valuation allowance | 13,100 | ||||
Change in tax rate, valuation allowance | $ 2,700 | $ 9,500 | |||
Change in tax rate, valuation allowance, expense (benefit) | (3,600) | ||||
Change in tax rate, net income tax expense (benefit) | $ (900) | ||||
Deferred Income Taxes and Other Noncurrent Liabilities | |||||
Income Tax [Line Items] | |||||
Deferred income tax payable | 519,900 | 503,400 | |||
Other assets | |||||
Income Tax [Line Items] | |||||
Deferred tax assets, net | 17,400 | $ 15,500 | |||
Valuation Allowance, Operating Loss Carryforwards | |||||
Income Tax [Line Items] | |||||
Valuation allowances | $ 17,500 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||||||||||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Nov. 15, 2019 | Aug. 06, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | |
Class of Stock [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ 250,000,000 | $ 200,000,000 | |||||||||
Dividends paid | $ 108,439,000 | $ 103,115,000 | $ 100,813,000 | ||||||||
Dividends declared (in dollars per share) | $ 0.110 | $ 0.105 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.105 | $ 0.105 | $ 0.105 | |||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Treasury stock, shares, acquired | 1.6 | 0.6 | |||||||||
Treasury stock, value acquired | $ 50,000,000 | $ 24,400,000 | |||||||||
Forecast | Subsequent Event | |||||||||||
Class of Stock [Line Items] | |||||||||||
Dividends declared (in dollars per share) | $ 0.11 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - shares | 12 Months Ended | |||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Dec. 01, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeiture rate | 6.40% | 6.40% | 8.70% | |
2013 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 25,500,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation by Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 55,300 | $ 88,300 | $ 65,200 |
Taxes related to share-based compensation | 13,700 | 24,100 | 24,200 |
Proceeds from issuance of common stock | 39,087 | 21,507 | 28,779 |
Tax benefit on option exercises | 4,800 | 7,400 | 23,300 |
Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 14,700 | 18,500 | 20,400 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 28,900 | 24,100 | 20,800 |
Performance Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 9,900 | 43,700 | 21,600 |
Deferred Stock and Other Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 1,800 | $ 2,000 | $ 2,400 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Unrecognized Compensation Cost (Details) $ in Millions | 12 Months Ended |
Sep. 27, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 86.1 |
Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 15.7 |
Compensation cost not yet recognized, period for recognition | 2 years 3 months |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 54.5 |
Compensation cost not yet recognized, period for recognition | 2 years 4 months 2 days |
Performance Stock Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 15.9 |
Compensation cost not yet recognized, period for recognition | 1 year 6 months 14 days |
Share-Based Compensation - Time
Share-Based Compensation - Time-Based Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 55.3 | $ 88.3 | $ 65.2 |
Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 20.00% | 20.00% | 25.00% |
Expected life (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Risk-free interest rate, minimum | 1.62% | 2.25% | 2.14% |
Risk-free interest rate, maximum | 3.02% | 2.94% | 2.20% |
Time-based options, weighted-average grant-date fair value (in dollars per share) | $ 8.23 | $ 8.75 | $ 8.47 |
Total intrinsic value exercised (in millions) | $ 26.8 | $ 16.6 | $ 32.2 |
Total fair value that vested (in millions) | 16.3 | 17.3 | 17.7 |
Performance-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value exercised (in millions) | $ 8.9 | $ 7.4 | $ 26.6 |
Minimum | Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 1.17% | 1.03% | 1.11% |
Maximum | Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 1.44% | 1.11% | 1.21% |
Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 14.7 | $ 18.5 | $ 20.4 |
Time-Based Options | Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Award expiration period | 10 years |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 27, 2019USD ($)$ / sharesshares | |
Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Shares Outstanding (in shares) | shares | 13,302 |
Granted (in shares) | shares | 1,955 |
Exercised (in shares) | shares | (1,973) |
Forfeited and expired (in shares) | shares | (928) |
Ending Shares Outstanding (in shares) | shares | 12,356 |
Exercisable Shares (in shares) | shares | 8,150 |
Shares Expected to Vest (in shares) | shares | 3,980 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 26.60 |
Granted Weighted-Average Exercise Price (in dollars per share) | $ / shares | 36.42 |
Exercised Weighted-Average Exercise Price (in dollars per share) | $ / shares | 21.90 |
Forfeited and expired Weighted-Average Exercise Price (in dollars per share) | $ / shares | 35.72 |
Ending Weighted-Average Exercise Price (in dollars per share) | $ / shares | 28.22 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $ / shares | 23.82 |
Expected to vest Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 36.72 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Aggregated Intrinsic Value of Shares Outstanding | $ | $ 182,889 |
Aggregate Intrinsic Value of Shares Exercisable | $ | 156,493 |
Aggregate Intrinsic Value of Shares Expected to Vest | $ | $ 25,066 |
Weighted-Average Remaining Term of Shares Outstanding | 5 years 8 months 12 days |
Weighted-Average Remaining Term of Shares Exercisable | 4 years 4 months 24 days |
Weighted-Average Remaining Term of Shares Expected to Vest | 8 years 2 months 12 days |
Performance-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Shares Outstanding (in shares) | shares | 1,875 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (364) |
Forfeited and expired (in shares) | shares | 0 |
Ending Shares Outstanding (in shares) | shares | 1,511 |
Exercisable Shares (in shares) | shares | 1,511 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 12.46 |
Granted Weighted-Average Exercise Price (in dollars per share) | $ / shares | 0 |
Exercised Weighted-Average Exercise Price (in dollars per share) | $ / shares | 11.17 |
Forfeited and expired Weighted-Average Exercise Price (in dollars per share) | $ / shares | 0 |
Ending Weighted-Average Exercise Price (in dollars per share) | $ / shares | 12.77 |
Exercisable Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 12.77 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Aggregated Intrinsic Value of Shares Outstanding | $ | $ 45,696 |
Aggregate Intrinsic Value of Shares Exercisable | $ | $ 45,696 |
Weighted-Average Remaining Term of Shares Outstanding | 2 years 2 months 12 days |
Weighted-Average Remaining Term of Shares Exercisable | 2 years 2 months 12 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance-Based Options Narrative (Details) - Performance-Based Options - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance-based options, grants in period, weighted average grant date fair value (in dollars per share) | 0 | ||
Total intrinsic value of performance-based options exercised | $ 8.9 | $ 7.4 | $ 26.6 |
Performance-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Award expiration period | 10 years |
Share-Based Compensation - Defe
Share-Based Compensation - Deferred Stock and Time-Based Units Narrative (Details) | 12 Months Ended |
Sep. 27, 2019shares | |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 1,204,000 |
Restricted Stock Units (RSUs) | Share-based Compensation Award, Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, percentage | 25.00% |
Deferred Stock and Other Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 58,912 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) shares in Thousands | 12 Months Ended |
Sep. 27, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance (in shares) | shares | 2,408 |
Granted (in shares) | shares | 1,204 |
Vested (in shares) | shares | (630) |
Forfeited (in shares) | shares | (333) |
Ending balance (in shares) | shares | 2,649 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted Average Grant Date Fair Value, Beginning (in dollars per shares) | $ / shares | $ 36.66 |
Weighted Average Grant Date Fair Value, Granted (in dollars per shares) | $ / shares | 36.53 |
Weighted Average Grant Date Fair Value, Vested (in dollars per shares) | $ / shares | 35.49 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per shares) | $ / shares | 36.99 |
Weighted Average Grant Date Fair Value, Ending (in dollars per shares) | $ / shares | $ 36.89 |
Share-Based Compensation - Pe_2
Share-Based Compensation - Performance Stock Units Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Allocated share-based compensation expense | $ (55.3) | $ (88.3) | $ (65.2) |
Performance Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 1,614 | ||
Granted (in shares) | 1,299 | ||
Vested (in shares) | (1,051) | ||
Forfeited (in shares) | (241) | ||
Ending balance (in shares) | 1,621 | 1,614 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Beginning (in dollars per shares) | $ 34.99 | ||
Weighted Average Grant Date Fair Value, Granted (in dollars per shares) | 36.44 | ||
Weighted Average Grant Date Fair Value, Vested (in dollars per shares) | 32.65 | ||
Weighted Average Grant Date Fair Value, Forfeited (in dollars per shares) | 36.66 | ||
Weighted Average Grant Date Fair Value, Ending (in dollars per shares) | $ 36.20 | $ 34.99 | |
Performance Stock Units (PSUs) | 2016 PSU Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted (in shares) | 500 | ||
Performance Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Allocated share-based compensation expense | $ (9.9) | $ (43.7) | $ (21.6) |
Performance Stock Units (PSUs) | 2018 PSU Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Allocated share-based compensation expense | 6.6 | $ 18.9 | |
Performance Stock Units (PSUs) | 2017 PSU Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Allocated share-based compensation expense | $ 5.2 |
Earnings Per Share - (Details)
Earnings Per Share - (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Earnings: | |||||||||||
Net income attributable to Aramark stockholders(3) | $ 85,557 | $ 82,955 | $ 29,353 | $ 250,682 | $ 175,455 | $ 72,577 | $ 27,569 | $ 292,284 | $ 448,549 | $ 567,885 | $ 373,923 |
Shares: | |||||||||||
Basic weighted-average shares outstanding | 246,854 | 245,771 | 244,453 | ||||||||
Effect of dilutive securities (in shares) | 5,156 | 7,581 | 7,104 | ||||||||
Diluted weighted-average shares outstanding | 252,010 | 253,352 | 251,557 | ||||||||
Basic Earnings Per Share: | |||||||||||
Net income attributable to Aramark stockholders (in dollars per share) | $ 1.82 | $ 2.31 | $ 1.53 | ||||||||
Diluted Earnings Per Share: | |||||||||||
Net income attributable to Aramark stockholders (in dollars per share) | $ 1.78 | $ 2.24 | $ 1.49 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 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) | 5.2 | 1.6 | 3.9 |
Performance-Based Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 1.3 | 1.2 | 1.2 |
Commitments And Contingencies -
Commitments And Contingencies - Narrative (Details) | Aug. 26, 2019USD ($) | Sep. 27, 2019USD ($)Lawsuit | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) |
Loss Contingencies [Line Items] | ||||
Capital and other purchase commitments | $ 595,300,000 | |||
Letters of credit outstanding | 110,100,000 | |||
Maximum potential liability from vehicle leases | 27,500,000 | |||
Residual value guarantee, value assumptions, terminal fair value of vehicles coming off lease | 0 | |||
Amounts accrued for guarantee arrangements | 0 | |||
Rental expense for all operating leases | $ 860,600,000 | $ 187,500,000 | $ 170,000,000 | |
Number of class action lawsuits | Lawsuit | 2 | |||
Litigation settlement expense | $ 21,000,000 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Primary vehicle lease, term | 1 year | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Primary vehicle lease, term | 8 years | |||
Accrued Expenses and Other Current Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Accrued estimate of possible loss | $ 21,000,000 | |||
Employee Severance and Other Costs | ||||
Loss Contingencies [Line Items] | ||||
Separation costs | 18,700,000 | $ 36,600,000 | $ 18,400,000 | |
Employee Severance and Other Costs | Accrued Payroll and Related Expenses | Chairman, President and Chief Executive Officer | ||||
Loss Contingencies [Line Items] | ||||
Separation costs | $ 10,400,000 | |||
Cost of services provided | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement expense | 12,000,000 | |||
Selling, General Expenses | ||||
Loss Contingencies [Line Items] | ||||
Litigation settlement expense | $ 9,000,000 |
Commitments And Contingencies_2
Commitments And Contingencies - Schedule of Future Minimum Rental Commitments (Details) $ in Thousands | Sep. 27, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 101,061 |
2021 | 74,908 |
2022 | 56,765 |
2023 | 43,795 |
2024 | 36,215 |
2025-Thereafter | 214,818 |
Total minimum rental obligations | $ 527,562 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 3,913,598 | $ 3,971,606 | $ 3,939,311 | $ 3,965,118 | $ 16,227,341 | $ 15,789,633 | $ 14,604,412 |
Cost of services provided | 3,503,280 | 3,594,978 | 3,639,959 | 3,794,445 | 3,386,380 | 3,526,293 | 3,563,009 | 3,522,230 | 15,336,182 | 14,971,222 | 13,802,785 |
Net income(3) | 85,414 | 83,064 | 29,310 | 250,676 | 175,568 | 72,716 | 27,716 | 292,440 | |||
Net income attributable to Aramark stockholders(3) | $ 85,557 | $ 82,955 | $ 29,353 | $ 250,682 | $ 175,455 | $ 72,577 | $ 27,569 | $ 292,284 | $ 448,549 | $ 567,885 | $ 373,923 |
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.35 | $ 0.34 | $ 0.12 | $ 1.02 | $ 0.71 | $ 0.29 | $ 0.11 | $ 1.19 | |||
Diluted (in dollars per share) | 0.34 | 0.33 | 0.12 | 0.99 | 0.69 | 0.29 | 0.11 | 1.16 | |||
Dividends paid per common share (in dollars per share) | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.105 | $ 0.105 | $ 0.105 | $ 0.105 | $ 0.110 | $ 0.105 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019USD ($) | Jun. 28, 2019USD ($) | Mar. 29, 2019USD ($) | Dec. 28, 2018USD ($) | Sep. 28, 2018USD ($) | Jun. 29, 2018USD ($) | Mar. 30, 2018USD ($) | Dec. 29, 2017USD ($) | Sep. 27, 2019USD ($)segment | Sep. 28, 2018USD ($) | Sep. 29, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Revenue | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 3,913,598 | $ 3,971,606 | $ 3,939,311 | $ 3,965,118 | $ 16,227,341 | $ 15,789,633 | $ 14,604,412 |
Operating Income | 891,159 | 818,411 | 801,627 | ||||||||
Interest and Other Financing Costs, net | (334,987) | (346,535) | (280,985) | ||||||||
Income (Loss) before Income Taxes | 556,172 | 471,876 | 520,642 | ||||||||
Depreciation and amortization | 592,573 | 596,182 | 508,212 | ||||||||
Capital expenditures and client contract investments and other | 506,400 | 912,100 | 555,000 | ||||||||
Assets | 13,736,321 | 13,720,102 | 13,736,321 | 13,720,102 | |||||||
Property and Equipment, net | 2,181,762 | 1,378,094 | 2,181,762 | 1,378,094 | |||||||
Other compensation expense | 74,900 | ||||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 12,070,000 | 11,795,600 | 11,098,000 | ||||||||
Property and Equipment, net | 1,854,700 | 1,065,900 | 1,854,700 | 1,065,900 | |||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 4,157,300 | 3,994,000 | 3,506,400 | ||||||||
Property and Equipment, net | 327,100 | 312,200 | 327,100 | 312,200 | |||||||
FSS United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 9,898,600 | 10,137,800 | 9,748,000 | ||||||||
Other compensation expense | 58,700 | ||||||||||
FSS United States | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 9,898,600 | ||||||||||
FSS United States | Cost of services provided | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain on investments | 16,200 | ||||||||||
FSS International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 3,742,900 | 3,655,800 | 3,291,700 | ||||||||
Other compensation expense | 400 | ||||||||||
Uniform | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 2,585,800 | 1,996,000 | 1,564,700 | ||||||||
Other compensation expense | 14,400 | ||||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other compensation expense | 1,400 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | 1,050,800 | 1,006,300 | 934,700 | ||||||||
Operating Segments | FSS United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | 716,800 | 682,700 | 596,600 | ||||||||
Depreciation and amortization | 381,600 | 405,000 | 372,700 | ||||||||
Capital expenditures and client contract investments and other | 375,900 | 494,300 | 420,400 | ||||||||
Assets | 8,368,100 | 8,482,800 | 8,368,100 | 8,482,800 | |||||||
Operating Segments | FSS International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | 142,700 | 142,200 | 155,800 | ||||||||
Depreciation and amortization | 69,400 | 64,800 | 55,300 | ||||||||
Capital expenditures and client contract investments and other | 69,400 | 84,100 | 66,100 | ||||||||
Assets | 2,039,200 | 2,072,000 | 2,039,200 | 2,072,000 | |||||||
Operating Segments | Uniform | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | 191,300 | 181,400 | 182,300 | ||||||||
Depreciation and amortization | 138,700 | 123,400 | 77,200 | ||||||||
Capital expenditures and client contract investments and other | 61,000 | 332,500 | 67,500 | ||||||||
Assets | 3,118,700 | 2,991,700 | 3,118,700 | 2,991,700 | |||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Income | (159,600) | (187,900) | (133,100) | ||||||||
Depreciation and amortization | 2,900 | 3,000 | 3,000 | ||||||||
Capital expenditures and client contract investments and other | 100 | 1,200 | 1,000 | ||||||||
Assets | $ 210,300 | $ 173,600 | 210,300 | 173,600 | |||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest and Other Financing Costs, net | (335,000) | (346,600) | (280,900) | ||||||||
Income (Loss) before Income Taxes | 556,200 | $ 471,800 | $ 520,700 | ||||||||
Facilities & Other | FSS United States | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,591,800 | ||||||||||
Product Concentration Risk | Food Services | Sales Revenue, Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 78.00% | ||||||||||
Product Concentration Risk | Facilities & Other | Sales Revenue, Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 22.00% |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Millions | Sep. 27, 2019 | Sep. 28, 2018 |
Fair Value Disclosure | Financial assets and liabilities measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of debt | $ 6,851.2 | $ 7,303.1 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 6,682.2 | $ 7,244 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Narrative (Details) - Senior Notes | Sep. 27, 2019 | Jan. 18, 2018 | Mar. 27, 2017 | Mar. 22, 2017 | May 31, 2016 | Dec. 17, 2015 |
5.125% Senior Notes, Due January 15, 2024 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Stated interest rate | 5.125% | 5.125% | 5.125% | 5.125% | ||
5.000% Senior Notes, Due April 2025 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Stated interest rate | 5.00% | 5.00% | ||||
3.125% Senior Notes, Due April 2025 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Stated interest rate | 3.125% | 3.125% | ||||
4.75% Senior Notes, Due June 2026 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Stated interest rate | 4.75% | 4.75% | 4.75% | |||
5.000% Senior Notes, Due February 2028 | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Stated interest rate | 5.00% | 5.00% |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Sep. 30, 2016 |
Current Assets: | ||||
Cash and cash equivalents | $ 246,643 | $ 215,025 | $ 238,797 | $ 152,580 |
Receivables | 1,806,964 | 1,790,433 | ||
Inventories | 411,319 | 724,802 | ||
Prepayments and other current assets | 193,461 | 171,165 | ||
Total current assets | 2,658,387 | 2,901,425 | ||
Property and Equipment, net | 2,181,762 | 1,378,094 | ||
Goodwill | 5,518,800 | 5,610,568 | ||
Investment in and Advances to Subsidiaries | 0 | 0 | ||
Other Intangible Assets | 2,033,566 | 2,136,844 | ||
Other Assets | 1,343,806 | 1,693,171 | ||
Assets | 13,736,321 | 13,720,102 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 69,928 | 30,907 | ||
Accounts payable | 999,517 | 1,018,920 | ||
Accrued expenses and other current liabilities | 1,635,853 | 1,440,332 | ||
Total current liabilities | 2,705,298 | 2,490,159 | ||
Long-Term Borrowings | 6,612,239 | 7,213,077 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,088,822 | 977,215 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 9,915 | 10,093 | ||
Total stockholders' equity | 3,320,047 | 3,029,558 | ||
Liabilities and Stockholders’ Equity | 13,736,321 | 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 | (10,686,389) | (11,405,452) | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | (2,002) | (2,002) | ||
Assets | (10,688,391) | (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 | (4,914,055) | (5,782,491) | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | (5,774,424) | (5,625,051) | ||
Liabilities and Stockholders’ Equity | (10,688,391) | (11,407,454) | ||
Aramark | 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 | 3,320,042 | 3,029,553 | ||
Other Intangible Assets | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Assets | 3,320,047 | 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 | 3,320,047 | 3,029,558 | ||
Liabilities and Stockholders’ Equity | 3,320,047 | 3,029,558 | ||
Aramark Services, Inc. (Issuer) | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 33,510 | 50,716 | 111,512 | 47,850 |
Receivables | 1,966 | 1,038 | ||
Inventories | 15,804 | 15,857 | ||
Prepayments and other current assets | 27,164 | 21,411 | ||
Total current assets | 78,444 | 89,022 | ||
Property and Equipment, net | 43,329 | 28,341 | ||
Goodwill | 173,104 | 173,104 | ||
Investment in and Advances to Subsidiaries | 6,649,119 | 7,441,605 | ||
Other Intangible Assets | 29,684 | 29,684 | ||
Other Assets | 20,382 | 100,754 | ||
Assets | 6,994,062 | 7,862,510 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 6,256 | 0 | ||
Accounts payable | 127,640 | 128,460 | ||
Accrued expenses and other current liabilities | 241,523 | 205,807 | ||
Total current liabilities | 375,419 | 334,267 | ||
Long-Term Borrowings | 6,090,487 | 6,651,110 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 380,453 | 432,583 | ||
Intercompany Payable | 0 | 0 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 147,703 | 444,550 | ||
Liabilities and Stockholders’ Equity | 6,994,062 | 7,862,510 | ||
Guarantors | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 40,544 | 29,844 | 37,513 | 31,344 |
Receivables | 522,627 | 443,599 | ||
Inventories | 301,091 | 592,259 | ||
Prepayments and other current assets | 82,666 | 86,100 | ||
Total current assets | 946,928 | 1,151,802 | ||
Property and Equipment, net | 1,784,410 | 1,013,523 | ||
Goodwill | 4,694,549 | 4,783,547 | ||
Investment in and Advances to Subsidiaries | 0 | 90,049 | ||
Other Intangible Assets | 1,819,315 | 1,919,795 | ||
Other Assets | 979,350 | 1,264,976 | ||
Assets | 10,224,552 | 10,223,692 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 27,924 | 26,564 | ||
Accounts payable | 507,903 | 483,606 | ||
Accrued expenses and other current liabilities | 1,030,074 | 926,794 | ||
Total current liabilities | 1,565,901 | 1,436,964 | ||
Long-Term Borrowings | 82,394 | 82,097 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 569,409 | 466,331 | ||
Intercompany Payable | 4,187,591 | 4,827,084 | ||
Redeemable Noncontrolling Interest | 9,915 | 10,093 | ||
Total stockholders' equity | 3,809,342 | 3,401,123 | ||
Liabilities and Stockholders’ Equity | 10,224,552 | 10,223,692 | ||
Non Guarantors | Reportable Legal Entities | ||||
Current Assets: | ||||
Cash and cash equivalents | 172,584 | 134,460 | $ 89,767 | $ 73,381 |
Receivables | 1,282,371 | 1,345,796 | ||
Inventories | 94,424 | 116,686 | ||
Prepayments and other current assets | 83,631 | 63,654 | ||
Total current assets | 1,633,010 | 1,660,596 | ||
Property and Equipment, net | 354,023 | 336,230 | ||
Goodwill | 651,147 | 653,917 | ||
Investment in and Advances to Subsidiaries | 717,228 | 844,245 | ||
Other Intangible Assets | 184,567 | 187,365 | ||
Other Assets | 346,076 | 329,443 | ||
Assets | 3,886,051 | 4,011,796 | ||
Current Liabilities: | ||||
Current maturities of long-term borrowings | 35,748 | 4,343 | ||
Accounts payable | 363,974 | 406,854 | ||
Accrued expenses and other current liabilities | 364,168 | 307,643 | ||
Total current liabilities | 763,890 | 718,840 | ||
Long-Term Borrowings | 439,358 | 479,870 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 138,960 | 78,301 | ||
Intercompany Payable | 726,464 | 955,407 | ||
Redeemable Noncontrolling Interest | 0 | 0 | ||
Total stockholders' equity | 1,817,379 | 1,779,378 | ||
Liabilities and Stockholders’ Equity | $ 3,886,051 | $ 4,011,796 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Condensed Consolidating Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Sep. 28, 2018 | Jun. 29, 2018 | Mar. 30, 2018 | Dec. 29, 2017 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenue | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 3,913,598 | $ 3,971,606 | $ 3,939,311 | $ 3,965,118 | $ 16,227,341 | $ 15,789,633 | $ 14,604,412 |
Costs and Expenses: | |||||||||||
Cost of services provided | 14,532,662 | 13,997,911 | 12,995,403 | ||||||||
Depreciation and amortization | 592,573 | 596,182 | 508,212 | ||||||||
Selling and general corporate expenses | 367,256 | 377,129 | 299,170 | ||||||||
Gain on sale of Healthcare Technologies | (156,309) | 0 | 0 | ||||||||
Interest and other financing costs, net | 334,987 | 346,535 | 280,985 | ||||||||
Expense allocations | 0 | 0 | 0 | ||||||||
Costs and Expenses | 15,671,169 | 15,317,757 | 14,083,770 | ||||||||
Income (Loss) before Income Taxes | 556,172 | 471,876 | 520,642 | ||||||||
Provision (Benefit) for Income Taxes | 107,706 | (96,564) | 146,455 | ||||||||
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | ||||||||
Net income (loss) | 448,466 | 568,440 | 374,187 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83) | 555 | 264 | ||||||||
Net income (loss) attributable to Aramark stockholders | $ 85,557 | $ 82,955 | $ 29,353 | $ 250,682 | $ 175,455 | $ 72,577 | $ 27,569 | $ 292,284 | 448,549 | 567,885 | 373,923 |
Other comprehensive income (loss), net of tax | (125,742) | 32,537 | 57,023 | ||||||||
Comprehensive income attributable to Aramark stockholders | 322,807 | 600,422 | 430,946 | ||||||||
Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Cost of services provided | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Selling and general corporate expenses | 0 | 0 | 0 | ||||||||
Gain on sale of Healthcare Technologies | 0 | ||||||||||
Interest and other financing costs, net | 0 | 0 | 0 | ||||||||
Expense allocations | 0 | 0 | 0 | ||||||||
Costs and Expenses | 0 | 0 | 0 | ||||||||
Income (Loss) before Income Taxes | 0 | 0 | 0 | ||||||||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | ||||||||
Equity in Net Income of Subsidiaries | (448,549) | (567,885) | (373,923) | ||||||||
Net income (loss) | (448,549) | (567,885) | (373,923) | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Aramark stockholders | (448,549) | (567,885) | (373,923) | ||||||||
Other comprehensive income (loss), net of tax | 193,340 | (10,088) | (116,302) | ||||||||
Comprehensive income attributable to Aramark stockholders | (255,209) | (577,973) | (490,225) | ||||||||
Aramark | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Cost of services provided | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Selling and general corporate expenses | 0 | 0 | 0 | ||||||||
Gain on sale of Healthcare Technologies | 0 | ||||||||||
Interest and other financing costs, net | 0 | 0 | 0 | ||||||||
Expense allocations | 0 | 0 | 0 | ||||||||
Costs and Expenses | 0 | 0 | 0 | ||||||||
Income (Loss) before Income Taxes | 0 | 0 | 0 | ||||||||
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | ||||||||
Equity in Net Income of Subsidiaries | 448,549 | 567,885 | 373,923 | ||||||||
Net income (loss) | 448,549 | 567,885 | 373,923 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Aramark stockholders | 448,549 | 567,885 | 373,923 | ||||||||
Other comprehensive income (loss), net of tax | (125,742) | 32,537 | 57,023 | ||||||||
Comprehensive income attributable to Aramark stockholders | 322,807 | 600,422 | 430,946 | ||||||||
Aramark Services, Inc. (Issuer) | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenue | 1,062,655 | 1,027,573 | 1,041,490 | ||||||||
Costs and Expenses: | |||||||||||
Cost of services provided | 981,661 | 848,739 | 941,031 | ||||||||
Depreciation and amortization | 16,377 | 19,466 | 17,502 | ||||||||
Selling and general corporate expenses | 162,963 | 195,093 | 140,305 | ||||||||
Gain on sale of Healthcare Technologies | 0 | ||||||||||
Interest and other financing costs, net | 316,120 | 329,027 | 273,405 | ||||||||
Expense allocations | (315,432) | (374,970) | (348,042) | ||||||||
Costs and Expenses | 1,161,689 | 1,017,355 | 1,024,201 | ||||||||
Income (Loss) before Income Taxes | (99,034) | 10,218 | 17,289 | ||||||||
Provision (Benefit) for Income Taxes | (38,388) | (3,521) | 5,139 | ||||||||
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | ||||||||
Net income (loss) | (60,646) | 13,739 | 12,150 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Aramark stockholders | (60,646) | 13,739 | 12,150 | ||||||||
Other comprehensive income (loss), net of tax | (71,282) | 43,686 | 35,667 | ||||||||
Comprehensive income attributable to Aramark stockholders | (131,928) | 57,425 | 47,817 | ||||||||
Guarantors | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenue | 10,653,013 | 10,432,088 | 9,708,157 | ||||||||
Costs and Expenses: | |||||||||||
Cost of services provided | 9,362,232 | 9,132,991 | 8,507,705 | ||||||||
Depreciation and amortization | 473,833 | 483,106 | 416,979 | ||||||||
Selling and general corporate expenses | 176,714 | 158,064 | 138,304 | ||||||||
Gain on sale of Healthcare Technologies | (156,309) | ||||||||||
Interest and other financing costs, net | 3,531 | 266 | (3,196) | ||||||||
Expense allocations | 274,501 | 353,628 | 318,199 | ||||||||
Costs and Expenses | 10,134,502 | 10,128,055 | 9,377,991 | ||||||||
Income (Loss) before Income Taxes | 518,511 | 304,033 | 330,166 | ||||||||
Provision (Benefit) for Income Taxes | 109,144 | (143,452) | 98,144 | ||||||||
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | ||||||||
Net income (loss) | 409,367 | 447,485 | 232,022 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | (83) | 555 | 264 | ||||||||
Net income (loss) attributable to Aramark stockholders | 409,450 | 446,930 | 231,758 | ||||||||
Other comprehensive income (loss), net of tax | (553) | 3,178 | 431 | ||||||||
Comprehensive income attributable to Aramark stockholders | 408,897 | 450,108 | 232,189 | ||||||||
Non Guarantors | Reportable Legal Entities | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Revenue | 4,511,673 | 4,329,972 | 3,854,765 | ||||||||
Costs and Expenses: | |||||||||||
Cost of services provided | 4,188,769 | 4,016,181 | 3,546,667 | ||||||||
Depreciation and amortization | 102,363 | 93,610 | 73,731 | ||||||||
Selling and general corporate expenses | 27,579 | 23,972 | 20,561 | ||||||||
Gain on sale of Healthcare Technologies | 0 | ||||||||||
Interest and other financing costs, net | 15,336 | 17,242 | 10,776 | ||||||||
Expense allocations | 40,931 | 21,342 | 29,843 | ||||||||
Costs and Expenses | 4,374,978 | 4,172,347 | 3,681,578 | ||||||||
Income (Loss) before Income Taxes | 136,695 | 157,625 | 173,187 | ||||||||
Provision (Benefit) for Income Taxes | 36,950 | 50,409 | 43,172 | ||||||||
Equity in Net Income of Subsidiaries | 0 | 0 | 0 | ||||||||
Net income (loss) | 99,745 | 107,216 | 130,015 | ||||||||
Less: Net income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to Aramark stockholders | 99,745 | 107,216 | 130,015 | ||||||||
Other comprehensive income (loss), net of tax | (121,505) | (36,776) | 80,204 | ||||||||
Comprehensive income attributable to Aramark stockholders | $ (21,760) | $ 70,440 | $ 210,219 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements of Aramark and Subsidiaries - Condensed Consolidating Statements of Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 984,227 | $ 1,051,875 | $ 1,052,826 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | (503,090) | (628,604) | (552,729) |
Disposals of property and equipment | 17,871 | 10,491 | 18,906 |
Proceeds from divestitures | 293,711 | 0 | 0 |
Acquisitions of businesses, net of cash acquired | (44,863) | (2,240,284) | (142,122) |
Proceeds from governmental agencies related to property and equipment | 23,025 | 0 | 0 |
Other investing activities | 3,825 | (6,879) | (2,539) |
Net cash used in investing activities | (209,521) | (2,865,276) | (678,484) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 77,630 | 3,177,313 | 3,851,417 |
Payments of long-term borrowings | (654,560) | (973,689) | (3,911,992) |
Net change in funding under the Receivables Facility | 0 | (254,200) | (13,800) |
Payments of dividends | (108,439) | (103,115) | (100,813) |
Proceeds from issuance of common stock | 39,087 | 21,507 | 28,779 |
Repurchase of common stock | (50,000) | (24,410) | (100,000) |
Other financing activities | (38,610) | (49,253) | (42,277) |
Change in intercompany, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (734,892) | 1,794,153 | (288,686) |
Effect of foreign exchange rates on cash and cash equivalents | (8,196) | (4,524) | 561 |
Decrease (increase) in cash and cash equivalents | 31,618 | (23,772) | 86,217 |
Cash and cash equivalents, beginning of period | 215,025 | 238,797 | 152,580 |
Cash and cash equivalents, end of period | 246,643 | 215,025 | 238,797 |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (16,913) | (65,587) | (188,275) |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | 0 | 0 | 0 |
Disposals of property and equipment | 0 | 0 | 0 |
Proceeds from divestitures | 0 | ||
Acquisitions of businesses, net of cash acquired | 0 | 0 | 0 |
Proceeds from governmental agencies related to property and equipment | 0 | ||
Other investing activities | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 0 | 0 | 0 |
Payments of long-term borrowings | 0 | 0 | 0 |
Net change in funding under the Receivables Facility | 0 | 0 | |
Payments of dividends | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Change in intercompany, net | 16,913 | 65,587 | 188,275 |
Net cash provided by (used in) financing activities | 16,913 | 65,587 | 188,275 |
Effect of foreign exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease (increase) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 0 | 0 | 0 |
Cash and cash equivalents, end of period | 0 | 0 | 0 |
Aramark | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | 0 | 0 | 0 |
Disposals of property and equipment | 0 | 0 | 0 |
Proceeds from divestitures | 0 | ||
Acquisitions of businesses, net of cash acquired | 0 | 0 | 0 |
Proceeds from governmental agencies related to property and equipment | 0 | ||
Other investing activities | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 0 | 0 | 0 |
Payments of long-term borrowings | 0 | 0 | 0 |
Net change in funding under the Receivables Facility | 0 | 0 | |
Payments of dividends | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Change in intercompany, net | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Effect of foreign exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease (increase) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents, beginning of period | 5 | 5 | 5 |
Cash and cash equivalents, end of period | 5 | 5 | 5 |
Aramark Services, Inc. (Issuer) | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (47,231) | 111,541 | 261,282 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | (12,160) | (13,133) | (20,939) |
Disposals of property and equipment | 6,644 | 2,252 | 494 |
Proceeds from divestitures | 0 | ||
Acquisitions of businesses, net of cash acquired | 0 | (2,381,800) | 0 |
Proceeds from governmental agencies related to property and equipment | 0 | ||
Other investing activities | (356) | (3,095) | (69,401) |
Net cash used in investing activities | (5,872) | (2,395,776) | (89,846) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 0 | 3,012,072 | 3,451,164 |
Payments of long-term borrowings | (545,809) | (833,854) | (3,572,268) |
Net change in funding under the Receivables Facility | 0 | 0 | |
Payments of dividends | (108,439) | (103,115) | (100,813) |
Proceeds from issuance of common stock | 39,087 | 21,507 | 28,779 |
Repurchase of common stock | (50,000) | (24,410) | (100,000) |
Other financing activities | (36,305) | (45,905) | (69,172) |
Change in intercompany, net | 737,363 | 197,144 | 254,536 |
Net cash provided by (used in) financing activities | 35,897 | 2,223,439 | (107,774) |
Effect of foreign exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease (increase) in cash and cash equivalents | (17,206) | (60,796) | 63,662 |
Cash and cash equivalents, beginning of period | 50,716 | 111,512 | 47,850 |
Cash and cash equivalents, end of period | 33,510 | 50,716 | 111,512 |
Guarantors | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 757,832 | 690,218 | 779,801 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | (414,017) | (532,923) | (443,262) |
Disposals of property and equipment | 6,665 | 4,301 | 14,780 |
Proceeds from divestitures | 293,711 | ||
Acquisitions of businesses, net of cash acquired | (23,028) | 244,581 | (37,130) |
Proceeds from governmental agencies related to property and equipment | 23,025 | ||
Other investing activities | 3,677 | 328 | 36,946 |
Net cash used in investing activities | (109,967) | (283,713) | (428,666) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 0 | 0 | 0 |
Payments of long-term borrowings | (34,431) | (28,142) | (19,851) |
Net change in funding under the Receivables Facility | 0 | 0 | |
Payments of dividends | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Other financing activities | (2,192) | (2,958) | (2,973) |
Change in intercompany, net | (600,542) | (383,074) | (322,142) |
Net cash provided by (used in) financing activities | (637,165) | (414,174) | (344,966) |
Effect of foreign exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Decrease (increase) in cash and cash equivalents | 10,700 | (7,669) | 6,169 |
Cash and cash equivalents, beginning of period | 29,844 | 37,513 | 31,344 |
Cash and cash equivalents, end of period | 40,544 | 29,844 | 37,513 |
Non Guarantors | Reportable Legal Entities | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 290,539 | 315,703 | 200,018 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | (76,913) | (82,548) | (88,528) |
Disposals of property and equipment | 4,562 | 3,938 | 3,632 |
Proceeds from divestitures | 0 | ||
Acquisitions of businesses, net of cash acquired | (21,835) | (103,065) | (104,992) |
Proceeds from governmental agencies related to property and equipment | 0 | ||
Other investing activities | 504 | (4,112) | 29,916 |
Net cash used in investing activities | (93,682) | (185,787) | (159,972) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 77,630 | 165,241 | 400,253 |
Payments of long-term borrowings | (74,320) | (111,693) | (319,873) |
Net change in funding under the Receivables Facility | (254,200) | (13,800) | |
Payments of dividends | 0 | 0 | 0 |
Proceeds from issuance of common stock | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | 0 |
Other financing activities | (113) | (390) | 29,868 |
Change in intercompany, net | (153,734) | 120,343 | (120,669) |
Net cash provided by (used in) financing activities | (150,537) | (80,699) | (24,221) |
Effect of foreign exchange rates on cash and cash equivalents | (8,196) | (4,524) | 561 |
Decrease (increase) in cash and cash equivalents | 38,124 | 44,693 | 16,386 |
Cash and cash equivalents, beginning of period | 134,460 | 89,767 | 73,381 |
Cash and cash equivalents, end of period | $ 172,584 | $ 134,460 | $ 89,767 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Additions | $ 2,330 | $ 21,101 | |
Subtractions | 13,821 | 3,591 | |
Reserve for Doubtful Accounts, Advances and Current Notes Receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, Beginning of Period | 52,682 | 53,416 | $ 48,058 |
Additions | 21,821 | 22,009 | 18,141 |
Subtractions | 24,937 | 22,743 | 12,783 |
Balance, End of Period | $ 49,566 | $ 52,682 | $ 53,416 |
Uncategorized Items - fy2019ara
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,129,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 58,395,000 |
Capital Surplus [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (8,013,000) |