Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Oct. 30, 2020 | Mar. 27, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Oct. 2, 2020 | ||
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 | $ 5,411.1 | ||
Entity Common Stock, Shares Outstanding | 253,136,698 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-02 | ||
Entity Central Index Key | 0001584509 | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 2,509,188 | $ 246,643 |
Receivables (less allowances: 2020 - $74,925; 2019 - $49,566) | 1,431,206 | 1,806,964 |
Inventories | 436,473 | 411,319 |
Prepayments and other current assets | 298,944 | 193,461 |
Total current assets | 4,675,811 | 2,658,387 |
Property and Equipment, at cost: | ||
Land, buildings and improvements | 929,354 | 947,522 |
Service equipment and fixtures | 4,184,603 | 3,993,014 |
Property and Equipment, gross | 5,113,957 | 4,940,536 |
Less - Accumulated depreciation | (3,063,049) | (2,758,774) |
Property and Equipment, net | 2,050,908 | 2,181,762 |
Goodwill | 5,343,828 | 5,518,800 |
Other Intangible Assets | 1,932,637 | 2,033,566 |
Operating Lease Right-of-use Assets (see Note 8) | 551,394 | 0 |
Other Assets | 1,158,106 | 1,343,806 |
Assets | 15,712,684 | 13,736,321 |
Current Liabilities: | ||
Current maturities of long-term borrowings | 99,915 | 69,928 |
Current operating lease liabilities (see Note 8) | 71,810 | 0 |
Accounts payable | 663,455 | 999,517 |
Accrued payroll and related expenses | 572,076 | 509,617 |
Accrued expenses and other current liabilities | 940,202 | 1,126,236 |
Total current liabilities | 2,347,458 | 2,705,298 |
Long-Term Borrowings | 9,178,508 | 6,612,239 |
Noncurrent Operating Lease Liabilities (see Note 8) | 341,667 | 0 |
Deferred Income Taxes and Other Noncurrent Liabilities | 1,099,075 | 1,088,822 |
Redeemable Noncontrolling Interest | 9,988 | 9,915 |
Stockholders' Equity: | ||
Common stock, par value $0.01 (authorized: 600,000,000 shares; issued: 2020—290,663,529 shares and 2019—282,919,536; and outstanding: 2020—253,042,169 shares and 2019—247,756,091 shares) | 2,907 | 2,829 |
Capital surplus | 3,416,132 | 3,236,450 |
Retained earnings | 532,379 | 1,107,029 |
Accumulated other comprehensive loss | (307,258) | (216,965) |
Treasury stock (shares held in treasury: 2020—37,621,360 shares and 2019—35,163,445 shares) | (908,172) | (809,296) |
Total stockholders' equity | 2,735,988 | 3,320,047 |
Liabilities and Stockholders’ Equity | $ 15,712,684 | $ 13,736,321 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts | $ 74,925 | $ 49,566 |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 600,000,000 | |
Common stock, shares issued (in shares) | 290,663,529 | 282,919,536 |
Common stock, shares outstanding (in shares) | 253,042,169 | 247,756,091 |
Treasury Stock, Shares (in shares) | 37,621,360 | 35,163,445 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 12,829,559 | $ 16,227,341 | $ 15,789,633 |
Costs and Expenses: | |||
Cost of services provided | 11,993,667 | 14,532,662 | 13,997,911 |
Depreciation and amortization | 595,195 | 592,573 | 596,182 |
Selling and general corporate expenses | 307,016 | 367,256 | 377,129 |
Goodwill impairment | 198,600 | 0 | 0 |
Gain on sale of Healthcare Technologies | 0 | (156,309) | 0 |
Costs and Expenses | 13,094,478 | 15,336,182 | 14,971,222 |
Operating (loss) income | (264,919) | 891,159 | 818,411 |
Interest and Other Financing Costs, net | 382,800 | 334,987 | 346,535 |
(Loss) Income Before Income Taxes | (647,719) | 556,172 | 471,876 |
(Benefit) Provision for Income Taxes | (186,284) | 107,706 | (96,564) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | (461,435) | 448,466 | 568,440 |
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 |
Net (loss) income attributable to Aramark stockholders | $ (461,529) | $ 448,549 | $ 567,885 |
(Loss) Earnings per share attributable to Aramark stockholders: | |||
Basic (in dollars per share) | $ (1.83) | $ 1.82 | $ 2.31 |
Diluted (in dollars per share) | $ (1.83) | $ 1.78 | $ 2.24 |
Weighted Average Shares Outstanding: | |||
Basic (in shares) | 251,828 | 246,854 | 245,771 |
Diluted (in shares) | 251,828 | 252,010 | 253,352 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (461,435) | $ 448,466 | $ 568,440 |
Other comprehensive (loss) income, net of tax: | |||
Pension plan adjustments | (25,669) | (22,594) | 20,647 |
Foreign currency translation adjustments | (7,818) | (34,308) | (31,253) |
Cash flow hedges: | |||
Unrealized (losses) gains arising during the period | (82,005) | (62,450) | 39,311 |
Reclassification adjustments | 25,463 | (4,798) | 3,675 |
Share of equity investee's comprehensive (loss) income | (264) | (1,592) | 157 |
Other comprehensive (loss) income, net of tax | (90,293) | (125,742) | 32,537 |
Comprehensive (loss) income | (551,728) | 322,724 | 600,977 |
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 |
Comprehensive (loss) income attributable to Aramark stockholders | $ (551,822) | $ 322,807 | $ 600,422 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (461,435) | $ 448,466 | $ 568,440 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 595,195 | 592,573 | 596,182 |
Goodwill impairment and asset write-downs | 283,743 | 0 | 0 |
Deferred income taxes | (134,048) | 40,503 | (104,289) |
Share-based compensation expense | 30,339 | 55,280 | 88,276 |
Net gain on sale of Healthcare Technologies | 0 | (139,165) | 0 |
Changes in operating assets and liabilities: | |||
Accounts Receivable | 362,708 | (78,771) | (45,891) |
Inventories | (25,675) | (49,732) | (40,187) |
Prepayments and Other Current Assets | (86,444) | (37,854) | 42,450 |
Accounts Payable | (342,069) | 17,680 | 26,658 |
Accrued Expenses | (143,640) | 193,532 | (111,386) |
Payments made to clients on contracts | (69,575) | (40,073) | 0 |
Changes in other noncurrent liabilities | 92,782 | 18,904 | 1,576 |
Changes in other assets | 66,650 | (41,436) | (2,225) |
Other operating activities | 8,151 | 4,320 | 32,271 |
Net cash provided by operating activities | 176,682 | 984,227 | 1,051,875 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | (418,508) | (503,090) | (628,604) |
Disposals of property and equipment | 54,074 | 17,871 | 10,491 |
Proceeds from divestitures | 0 | 293,711 | 0 |
Acquisition of certain businesses, net of cash acquired | |||
Working capital other than cash acquired | (3,081) | 10,634 | 37,985 |
Property and equipment | (1,264) | (3,320) | (283,447) |
Additions to goodwill, other intangible assets and other assets, net | (17,856) | (52,177) | (1,994,822) |
Proceeds from governmental agencies related to property and equipment | 23,550 | 23,025 | 0 |
Other investing activities | 1,965 | 3,825 | (6,879) |
Net cash used in investing activities | (361,120) | (209,521) | (2,865,276) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 3,239,772 | 77,630 | 3,177,313 |
Payments of long-term borrowings | (1,000,463) | (654,560) | (973,689) |
Net change in funding under the Receivables Facility | 315,600 | 0 | (254,200) |
Payments of dividends | (110,893) | (108,439) | (103,115) |
Proceeds from issuance of common stock | 90,022 | 39,087 | 21,507 |
Repurchase of common stock | (6,540) | (50,000) | (24,410) |
Other financing activities | (89,976) | (38,610) | (49,253) |
Net cash provided by (used in) financing activities | 2,437,522 | (734,892) | 1,794,153 |
Effect of foreign exchange rates on cash and cash equivalents | 9,461 | (8,196) | (4,524) |
Increase (decrease) in cash and cash equivalents | 2,262,545 | 31,618 | (23,772) |
Cash and cash equivalents, beginning of period | 246,643 | 215,025 | 238,797 |
Cash and cash equivalents, end of period | $ 2,509,188 | $ 246,643 | $ 215,025 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Total Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital Surplus | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance Beginning at Sep. 29, 2017 | $ 2,459,061 | $ 2,771 | $ 3,014,546 | $ 247,050 | $ (123,760) | $ (681,546) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income (Loss) Attributable to Parent | $ 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 | $ 58,395 | 2,793 | 3,132,421 | 710,519 | $ 58,395 | (91,223) | (724,952) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income (Loss) Attributable to Parent | 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) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income (Loss) Attributable to Parent | (461,529) | (461,529) | (461,529) | ||||||
Other comprehensive loss | (90,293) | (90,293) | (90,293) | ||||||
Capital contributions from issuance of common stock | 134,607 | 78 | 134,529 | ||||||
Capital contributions from stockholder | 14,814 | 14,814 | |||||||
Share-based compensation expense | 30,339 | 30,339 | |||||||
Repurchases of common stock | (98,876) | (98,876) | |||||||
Payments of dividends | (113,121) | (113,121) | |||||||
Balance Ending at Oct. 02, 2020 | $ 2,735,988 | $ 2,735,988 | $ 2,907 | $ 3,416,132 | $ 532,379 | $ (307,258) | $ (908,172) |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Oct. 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, including personal protective equipment ("PPE"), 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 year ended October 2, 2020 was a fifty-three week period and the fiscal years ended September 27, 2019 and September 28, 2018 were each fifty-two week periods. New Accounting Standards Updates Adopted Standards In March 2019, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which provided clarification regarding three issues related to the lease recognition standard. The guidance was effective for the Company in the first quarter of fiscal 2020 when the lease accounting standard was adopted. See below for further discussion regarding the impact of this standard. In July 2018, the FASB issued two ASUs regarding the lease recognition standard. The guidance provided clarification on issues identified regarding the adoption of the standard, provided an additional transition method to adopt the standard and provided an additional practical expedient to lessors. The guidance was effective for the Company in the first quarter of fiscal 2020 when the lease accounting standard was adopted. 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 was 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 adopted the remaining amendments of the pronouncement in the first quarter of fiscal 2020, which did not have 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 (the "TCJA") from accumulated other comprehensive income to retained earnings. The guidance was effective for the Company in the first quarter of fiscal 2020. The Company adopted the guidance in the first quarter of fiscal 2020, which did not have an impact on the consolidated financial statements. The Company did not elect to reclassify the stranded income tax effects resulting from the TCJA from accumulated other comprehensive income to retained earnings. In September 2017, the FASB issued an ASU to provide additional implementation guidance with respect to the lease accounting standard. The guidance was effective for the Company in the first quarter of fiscal 2020. The Company adopted the standard in the first quarter of fiscal 2020 in conjunction with the lease recognition standard. See below for further discussion regarding the impact of the lease accounting provisions related to this standard. In February 2016, the FASB issued an ASU requiring lessees to recognize most leases on their balance sheets as operating lease liabilities with corresponding operating lease right-of-use assets and to disclose key information about lease arrangements. Recognition of expense on the Consolidated Statements of (Loss) Income continues in a manner similar to previous guidance. The Company adopted this guidance on September 28, 2019 (first day of fiscal 2020). In connection with the new lease guidance, the Company completed a comprehensive review of its lease arrangements in order to determine the impact of this ASU on its consolidated financial statements and related disclosures. The Company identified and implemented appropriate changes to business processes, controls and systems to support recognition and disclosure under the new standard. The Company adopted Accounting Standards Codification 842 (“ASC 842” or the "new lease standard") using the modified retrospective transition approach with an adjustment that recognized "Operating Lease Right-of-use Assets," "Current operating lease liabilities" and "Noncurrent Operating Lease Liabilities" on the Consolidated Balance Sheets on September 28, 2019. Comparative period information and disclosures were not revised as a result of the recognition and measurement of leases. Adoption of the new lease standard resulted in the recognition of operating lease liabilities and associated operating lease right-of-use assets of approximately $416.1 million and $558.5 million, respectively, as of September 28, 2019 on the Consolidated Balance Sheets. Deferred rent, tenant improvement allowances and prepaid rent, including $166.9 million of long-term prepaid rent as of September 28, 2019 associated with certain leases at client locations, were reclassified into operating lease right-of-use assets. There was no material impact to the Consolidated Statements of (Loss) Income or Consolidated Statements of Cash Flows as a result of adoption. See Note 8 for further information on the impact of adopting the new lease standard. Standards Not Yet Adopted (from most to least recent date of issuance) In March 2020, the FASB issued an ASU which provides optional expedients that may be adopted and applied through December 2022 to assist with the discontinuance of LIBOR. The expedients allow companies to ease the potential accounting burden when modifying contracts and hedging relationships that use LIBOR as a reference rate, if certain criteria are met. During the second quarter of fiscal 2020, the Company adopted the optional expedient to assert probability of forecasted hedged transactions occurring on its interest rate swap derivative contracts regardless of any expected contract modifications related to reference reform. Other optional expedients related to hedging relationships may be contemplated in the future resulting from reference rate reform. The Company reviewed its portfolio of debt agreements, lease agreements and other contracts and determined that only its debt agreements will be impacted by this standard, as the lease agreements and other contracts do not use LIBOR as a reference rate. The Company is currently evaluating the impact of the remaining amendment of this standard. In January 2020, the FASB issued an ASU which provides clarification and improvements to existing guidance related to accounting for certain equity securities upon the application or discontinuation of equity method accounting and the measurement of forward contracts and purchased options on certain securities. 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 this standard. In December 2019, the FASB issued an ASU which simplifies the accounting for income taxes and clarifies and amends existing income tax guidance. Impacted areas include intraperiod tax allocations, interim period taxes, deferred tax liabilities with outside basis differences, franchise taxes and transactions which result in the "step-up" of goodwill. 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 this standard. In November 2019, the FASB issued an ASU which provides clarification and improvements to existing guidance related to the credit losses on financial instruments standard. The Company will adopt this guidance in the first quarter of fiscal 2021 when the credit losses on financial instruments standard is adopted. The adoption of this guidance will not have a material impact on the Company’s financial statements or disclosures. 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 Company will adopt this guidance in the first quarter of fiscal 2021 when the credit losses on financial instruments standard is adopted. The adoption of this guidance will not have a material impact on the Company’s financial statements or disclosures. 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 will be adopted in the first quarter of fiscal 2021. The adoption of the amendment will not have a material impact on the Company’s financial statements or disclosures. The Company adopted the guidance related to financial instruments ASU in the first quarter of 2019 and the derivatives and hedging in the first quarter of fiscal 2020, which did not have a material impact on the consolidated financial statements. 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 this standard. In August 2018, the FASB issued an ASU which adds, modifies and removes several disclosure requirements related to fair value measurements. The Company will adopt this guidance in the first quarter of fiscal 2021 and the pronouncement will not have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued an ASU to require entities to account for expected credit losses on financial instruments including trade receivables. The expected credit loss model will replace the existing incurred credit loss model, that generally requires a loss to be incurred before it is recognized. The forward-looking model will require the Company to consider historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount in estimating credit losses and is expected to result in earlier recognition of allowances for credit losses. The amended guidance requires financial assets that are measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of financial assets. The guidance will also require enhanced disclosures. The Company will adopt this guidance in the first quarter of fiscal 2021 and any impact will be applied through a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The adoption of this guidance will not have a material impact on the Company’s financial statements or disclosures. 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 (Loss) Comprehensive income (loss) includes all changes to stockholders' equity during a period, except those resulting from investments by and distributions to stockholders. Components of comprehensive income (loss) 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 (loss) income is as follows (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 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 (loss) income $ (461,435) $ 448,466 $ 568,440 Pension plan adjustments (33,831) 8,162 (25,669) (29,137) 6,543 (22,594) 29,650 (9,003) 20,647 Foreign currency translation adjustments (6,348) (1,470) (7,818) (34,099) (209) (34,308) (31,003) (250) (31,253) Cash flow hedges: Unrealized (losses) gains arising during the period (110,817) 28,812 (82,005) (84,392) 21,942 (62,450) 55,445 (16,134) 39,311 Reclassification adjustments 34,409 (8,946) 25,463 (6,484) 1,686 (4,798) 5,185 (1,510) 3,675 Share of equity investee's comprehensive (loss) income (264) — (264) (1,592) — (1,592) 157 — 157 Other comprehensive (loss) income (116,851) 26,558 (90,293) (155,704) 29,962 (125,742) 59,434 (26,897) 32,537 Comprehensive (loss) income (551,728) 322,724 600,977 Less: Net income (loss) attributable to noncontrolling interest 94 (83) 555 Comprehensive (loss) income attributable to Aramark stockholders $ (551,822) $ 322,807 $ 600,422 Accumulated other comprehensive loss consists of the following (in thousands): October 2, 2020 September 27, 2019 Pension plan adjustments $ (72,891) $ (47,222) Foreign currency translation adjustments (135,937) (128,119) Cash flow hedges (87,598) (31,056) Share of equity investee's accumulated other comprehensive loss (10,832) (10,568) $ (307,258) $ (216,965) 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. Beginning in fiscal 2018, Argentina was determined to have a highly inflationary economy. As a result, the Company remeasures 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 $2.5 million, $4.9 million and $3.8 million during fiscal 2020, fiscal 2019 and fiscal 2018, respectively, to the Consolidated Statements of (Loss) Income. The impact of foreign currency transaction gains and losses exclusive of Argentina's operations included in the Company's operating results for fiscal 2020, fiscal 2019 and fiscal 2018 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. Beginning 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 regulations within its domicile of Bermuda, including regulations established by the Bermuda Monetary Authority (the "BMA") relating to levels of liquidity and solvency as such concepts are defined by the BMA. The Captive was in compliance with these regulations as of October 2, 2020. 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 October 2, 2020, cash and cash equivalents at the Captive was $92.1 million. Inventories are valued at the lower of cost (principally the first-in, first-out method) and net realizable value. As of October 2, 2020 and September 27, 2019, the Company's reserve for inventory obsolescence was approximately $36.7 million and $23.6 million, respectively. The inventory obsolescence reserve is determined based on history and specific identification. The components of inventories are as follows: October 2, 2020 September 27, 2019 Food (1) 42.7 % 54.3 % Career apparel and linens (2) 52.2 % 40.5 % Parts, supplies and novelties 5.1 % 5.2 % 100.0 % 100.0 % (1) Food inventory declined during fiscal 2020 as a result of reduced operations from the COVID-19 pandemic ("COVID-19"). (2) Career apparel and linens inventory increased during fiscal 2020 driven by increased production and distribution of PPE in the Uniform segment in response to COVID-19. Prepayments and other current assets The following table presents details of "Prepayments and other current assets" as presented in the Consolidated Balance Sheets (in thousands): October 2, 2020 September 27, 2019 Prepaid Insurance $ 13,396 $ 13,512 Prepaid Taxes and Licenses 11,130 12,399 Current Income Tax Asset (1) 123,608 35,107 Other Prepaid Expenses 150,810 132,443 $ 298,944 $ 193,461 (1) Fiscal 2020 income tax receivable driven by the net loss position during the year. 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 three Revenue from Contracts with Customers (see Note 7). During the fourth quarter of fiscal 2020, the Company recognized impairment charges of $30.6 million within its FSS United States and FSS International segments, consisting of right-of-use assets ($11.6 million), property and equipment ($17.8 million) and other assets ($1.2 million), which are included in "Cost of services provided" on the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020. These impairment charges primarily relate to client contracts that were reassessed due to the impact of COVID-19. In order to determine the impairment charges, the Company compared the estimated fair value of each asset group, calculated using discount cash flows, to its book value. During the third quarter of fiscal 2020, the Company permanently vacated certain rental properties and assets at various locations throughout the United States related to non-core operations and no longer intends to operate or sublease at these locations. Accordingly, the Company recorded a loss on disposal by abandonment of $28.5 million within its FSS United States segment, consisting of right-of-use assets ($10.3 million), leasehold improvements ($17.4 million) and other assets ($0.8 million), which is included in "Cost of services provided" on the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020. The Company has a remaining lease liability of $11.3 million related to the abandoned leases, which represents the fixed minimum rental payments contractually required under the leases through February 2025. During the third quarter of fiscal 2020, the Company received $25.0 million of insurance proceeds from one of its insurance carriers related to property damage and business interruption from a tornado at one of its Uniform market centers in Nashville, Tennessee. These proceeds serve to cover the cost of rebuilding the property and for any incremental expenses the Company incurs to continue servicing its customers at nearby market centers. The Company’s insurance policy provides coverage for the property damage and reimbursement for other expenses and incremental costs that have been incurred related to the damages and losses. The Company recorded a gain during fiscal 2020 of approximately $16.3 million from these proceeds, which represents the excess of previously incurred losses, including the write-down of the damaged property and equipment and business interruption expenses. The gain is included in “Cost of services provided” on the Consolidated Statements of (Loss) Income. Of the $25.0 million of insurance proceeds received, $21.5 million related to the recovery of the damaged building and equipment and is included within “Net cash used in investing activities” on the Consolidated Statement of Cash Flows for the fiscal year ended October 2, 2020. The remaining $3.5 million of insurance proceeds is included within “Net cash provided by operating activities” to offset the business interruption expenses incurred during the fiscal year ended October 2, 2020. The claims are ongoing and will be finalized upon completion of the new property. The Company believes the remaining claim amounts in future periods will be recoverable. Other Assets The following table presents details of "Other Assets" as presented in the Consolidated Balance Sheets (in thousands): October 2, 2020 September 27, 2019 Long-term prepaid rent (1) $ — $ 166,931 Cost to fulfill - Client (1) 113,940 109,401 Cost to fulfill - Rental merchandise in-service (2) 311,238 356,853 Long-term receivables 28,460 27,574 Miscellaneous investments (3) 262,609 264,452 Computer software costs, net (4) 177,136 170,510 Employee sales commissions (5) 122,011 111,001 Other (6) 142,712 137,084 $ 1,158,106 $ 1,343,806 (1) Prior to the Company's adoption of ASC 606, Revenue from Contracts with Customers , in fiscal 2019, client contract investments generally represented a cash payment provided by the Company for 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 during fiscal 2018. Subsequent to adoption of ASC 606 in fiscal 2019, 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). Due to the Company's adoption of ASC 842, Leases , in fiscal 2020, all long-term prepaid rent balances were reclassified to "Operating Lease Right-of-use Assets" (see Note 8). (2) Costs to fulfill - Rental merchandise in-service represent personalized work apparel, linens and other rental items in service at customer locations (see Note 7). (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 $182.9 million and $180.5 million at October 2, 2020 and September 27, 2019, respectively). For investments in 50% or less owned entities, other than those accounted for under the equity method of accounting, the Company measures these investments at cost, less any impairment and adjusted for changes in fair value resulting from observable price changes for an identical or a similar investment of the same issuer due to the lack of readily available fair values related to those investments. The carrying amount of equity investments without readily determinable fair values as of October 2, 2020 and September 27, 2019 was $42.5 million and $42.6 million, 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 (5) Employee sales commissions represent commission payments made to employees related to new or retained business contracts (see Note 7). (6) Other consists primarily of noncurrent deferred tax assets, pension assets, deferred financing costs on certain revolving credit facilities and other noncurrent assets. Other Accrued Expenses and Liabilities The following table presents details of "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets (in thousands): October 2, 2020 September 27, 2019 Deferred income (1)(2) $ 291,680 $ 345,840 Accrued client expenses (2) 44,419 105,636 Accrued taxes 53,146 61,816 Accrued insurance (3) and interest 174,048 192,695 Other 376,909 420,249 $ 940,202 $ 1,126,236 (1) Includes consideration received in advance from customers prior to the service being performed ($263.8 million and $319.0 million) or from vendors prior to the goods being consumed ($27.9 million and $26.8 million) in fiscal 2020 and fiscal 2019, respectively. (2) Decreases in fiscal 2020 driven by the impact of COVID-19, as clients ceased or reduced operations. See below and Note 7. (3) The Company is self-insured for certain obligations related to its employee health care benefit programs as well as for certain risks retained under its general liability, automobile liability and workers’ compensation liability programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on our claims history. 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): October 2, 2020 September 27, 2019 Deferred income taxes (see Note 10) $ 398,777 $ 519,904 Deferred compensation 210,884 212,090 Pension-related liabilities 18,044 21,367 Interest rate swap agreements 116,882 43,112 Insurance reserves (1) 143,923 125,293 Other noncurrent liabilities (2) 210,565 167,056 $ 1,099,075 $ 1,088,822 (1) The Company is self-insured for certain obligations related to its employee health care benefit programs as well as for certain risks retained under its general liability, automobile liability and workers’ compensation liability programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on our claims history. (2) Fiscal 2020 includes the payment deferral related to the employer portion of social security taxes as permitted under the Coronavirus Aid, Relief and Economic Security Act. Impact of COVID-19 COVID-19 has adversely affected global economies, financial markets and the overall environment for the Company and the extent to which it may impact future results of operations and overall financial performance remains uncertain. The Company began experiencing a significant decline in operations due to COVID-19 towards the end of its second quarter of fiscal 2020, which has continued through the fourth quarter of fiscal 2020. The decline in operations from COVID-19 caused a material deterioration in the Company's revenue, operating income (loss) and net income (loss) for the fiscal year ended October 2, 2020. The allowance for doubtful accounts increased to $74.9 million as of October 2, 2020 compared to $49.6 million as of September 27, 2019, which includes the Company's current estimates that reflect the continued economic uncertainty resulting from COVID-19. Certain businesses, mainly those related the Company's Sports, Leisure & Correction, Education and Business & Industry sectors, have been more significantly impacted than others. In response, the Company took significant actions in order to mitigate the negative impacts of COVID-19, including: • implementing several cost reduction initiatives, including renegotiations of client contracts, salary and other compensation adjustments, reductions to general corporate expenses and headcount reductions (see Note 3); • strengthening cash position by increasing borrowings (see Note 5); and • leveraging relief provisions provided under the Coronavirus Aid, Relief and Economic Security Act ("CAR |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Oct. 02, 2020 | |
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 (Loss) Income for the fiscal year ended September 27, 2019. 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 (Loss) 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., 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 (Loss) 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 Avendra Included in the Company’s Consolidated Statements of (Loss) Income for the fiscal year ended September 28, 2018 was 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 year ended September 28, 2018 for the Company: Fiscal Year Ended Unaudited (in thousands) September 28, 2018 Total revenue $ 16,014,463 Net income 624,334 The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the actual results of operations. 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 $28.9 million, $36.1 million and $78.1 million during fiscal 2020, 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 2020 and fiscal 2019, the Company paid net cash consideration of approximately $22.2 million and $44.9 million for various acquisitions, respectively. During fiscal 2018, the Company paid cash consideration of approximately $30.6 million for various acquisitions, excluding the purchases of AmeriPride and Avendra. 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 |
Oct. 02, 2020 | |
Restructuring and Related Activities [Abstract] | |
Severance | SEVERANCE: Beginning in the third quarter of fiscal 2020, the Company made changes to its organization as a result of COVID-19 to align its cost base to better support its clients' needs as the Company navigates the current environment and focuses on its long-term strategy. These actions included headcount reductions, which resulted in severance charges of approximately $145.8 million during the fiscal year ended October 2, 2020, which are recorded in both “Cost of services provided” and “Selling and general corporate expenses” on the Consolidated Statements of (Loss) Income. The majority of these charges are expected to be paid out within the next year. The following table summarizes the severance charges by segment recognized in the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020 (in millions): FSS United States $ 51.8 FSS International 87.3 Uniform 4.9 Corporate 1.8 $ 145.8 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. The remaining unpaid obligations are expected to be paid through early fiscal 2021. The following table summarizes the unpaid obligations for severance and related costs as of October 2, 2020, which are included in "Accrued payroll and related expenses" on the Consolidated Balance Sheets. (in millions) September 27, 2019 Charges Payments and Other October 2, 2020 Fiscal 2018 Reorganization $ 11.9 $ — $ (9.4) $ 2.5 Fiscal 2020 Reorganization — 145.8 (27.3) 118.5 Total Reorganization $ 11.9 $ 145.8 $ (36.7) $ 121.0 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Oct. 02, 2020 | |
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. If results of the qualitative assessment indicate a more likely than not determination or if a qualitative assessment is not performed, a quantitative test is performed by comparing the estimated fair value using discounted cash flow calculations of each reporting unit with its estimated net book value. During the fourth quarter of fiscal 2020, the Company performed the annual impairment test for goodwill for each of the reporting units using a quantitative testing approach. The Company compared the estimated fair value using discounted cash flow calculations of each reporting unit with its estimated book value. Based on the evaluation 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. During the second quarter of fiscal 2020, the Company identified a triggering event from the decline in its stock price resulting from COVID-19. As a result, the Company performed an interim quantitative impairment test as of March 27, 2020. The Company compared the estimated fair value using discounted cash flow calculations of each reporting unit with its estimated book value. Based on the evaluation performed, the Company determined that goodwill was not impaired for all but one reporting unit, as the fair value of each reporting unit substantially exceeded its respective carrying amount. The one reporting unit within the FSS International segment for which goodwill was determined to be impaired had also been tested for impairment using the quantitative approach during the Company's previous annual impairment test completed as of August 23, 2019. The reporting unit had a fair value that exceeded its carrying value by approximately 22% as of that date. As of March 27, 2020, the quantitative impairment test for this same reporting unit resulted in a fair value that was approximately 34% lower than its carrying value, which was driven most notably by the changes in underlying assumptions used for impairment calculation purposes, including the discount rate as well as the near term growth outlook of the reporting unit pre-COVID-19. As a result, the Company recognized a non-cash impairment charge of $198.6 million in the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020. For tax purposes, the impairment charge is not tax deductible. The impaired reporting unit has a remaining goodwill balance of $90.1 million as of October 2, 2020. The determination of fair value for each reporting unit includes assumptions, which are considered Level 3 inputs, that are subject to risk and uncertainty. The discounted cash flow calculations are dependent on several subjective factors including the timing of future cash flows and the underlying margin projection assumptions, 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 expected, including those assumptions relating to the duration and severity of COVID-19, this may impact the impairment analysis and could reduce the underlying cash flows used to estimate fair values and result in a decline in fair value that may trigger future impairment charges. Changes in total goodwill during fiscal 2020 are as follows (in thousands): Segment September 27, 2019 Acquisitions and Divestitures Impairments Translation October 2, 2020 FSS United States $ 3,949,218 $ 4,118 $ — $ (4) $ 3,953,332 FSS International 608,468 220 (198,600) 16,030 426,118 Uniform 961,114 3,307 — (43) 964,378 $ 5,518,800 $ 7,645 $ (198,600) $ 15,983 $ 5,343,828 Other intangible assets consist of (in thousands): October 2, 2020 September 27, 2019 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 2,195,700 $ (1,308,002) $ 887,698 $ 2,183,492 $ (1,193,525) $ 989,967 Trade names 1,052,744 (7,805) 1,044,939 1,047,959 (4,360) 1,043,599 $ 3,248,444 $ (1,315,807) $ 1,932,637 $ 3,231,451 $ (1,197,885) $ 2,033,566 During fiscal 2020, the Company acquired customer relationship assets with values of approximately $9.7 million. During fiscal 2019, the Company acquired customer relationship assets and trade names with values of approximately $28.5 million and $4.4 million, respectively. Customer relationship assets are being amortized principally on a straight-line basis over the expected period of benefit, between three Avendra and a majority of the other trade names are indefinite lived intangible assets and are not amortized, but are evaluated for impairment at least annually or more frequently if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. The Company utilized the "relief-from-royalty" method, which considers the discounted estimated royalty payments that are expected to be avoided as a result of the trade names being owned. During the fourth quarter of fiscal 2020, the Company completed its annual trade name impairment test for fiscal 2020, which did not result in an impairment charge. During the second quarter of fiscal 2020, the Company identified potential impairment indicators from the decline in its stock price resulting from COVID-19. As a result, the Company completed an interim trade name impairment test for the Avendra and certain other trade names as of March 27, 2020. Based on the evaluation performed, the Company determined that none of the trade names were impaired, as the estimated fair value for each of the Avendra and certain other trade names exceeded their respective carrying amounts. Amortization of other intangible assets for fiscal 2020, fiscal 2019 and fiscal 2018 was approximately $117.6 million, $117.0 million and $112.1 million, respectively. Based on the recorded balances at October 2, 2020, total estimated amortization of all acquisition-related intangible assets for fiscal years 2021 through 2025 are as follows (in thousands): 2021 $ 105,917 2022 85,813 2023 78,854 2024 78,453 2025 78,580 |
Borrowings
Borrowings | 12 Months Ended |
Oct. 02, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS: Long-term borrowings, net, are summarized in the following table (in thousands): October 2, 2020 September 27, 2019 Senior secured revolving credit facility, due October 2023 $ 849,895 $ 51,410 Senior secured term loan facility, due October 2023 485,346 507,887 Senior secured term loan facility, due March 2024 830,133 829,344 Senior secured term loan facility, due March 2025 1,659,194 1,658,026 Senior secured term loan facility, due January 2027 888,540 — 5.125% senior notes, due January 2024 — 902,351 5.000% senior notes, due April 2025 593,381 592,087 3.125% senior notes, due April 2025 (1) 377,960 352,363 6.375% senior notes, due May 2025 1,479,341 — 4.750% senior notes, due June 2026 495,426 494,731 5.000% senior notes, due February 2028 1,138,864 1,137,625 Receivables Facility, due June 2022 315,600 — Finance leases 142,588 148,754 Other 22,155 7,589 9,278,423 6,682,167 Less—current portion (99,915) (69,928) $ 9,178,508 $ 6,612,239 (1) This is a Euro denominated borrowing. See the disclosure below in the Senior Notes section for further information. As of October 2, 2020, there were approximately $937.4 million of outstanding foreign currency borrowings. Beginning in the second quarter of fiscal 2020, the Company increased its borrowings under the revolving credit facility and the Receivables Facility and also issued new senior unsecured notes (see below) in order to provide additional cash availability and maximize flexibility in response to uncertainty surrounding COVID-19. As of October 2, 2020, the Company had $849.9 million of borrowings under the revolving credit facility, $315.6 million of borrowings under the Receivables Facility, $2,509.2 million of cash and cash equivalents and approximately $80.1 million of availability under the senior secured revolving credit facility. On October 30, 2020, the Company repaid $680.0 million of the outstanding borrowings under the revolving credit facility utilizing cash and cash equivalents and as of such date had approximately $753.9 million of availability under the revolving credit facility. 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 October 2, 2020: • A U.S. dollar denominated term loan to ASI in the amount of $830.1 million, due 2024 ("U.S. Term Loan B due 2024"), $1,659.2 million, due 2025 ("U.S. Term Loan B due 2025") and $888.5 million, due 2027 ("U.S. Term Loan B due 2027"); • A yen denominated term loan to ASI in the amount of ¥9,708.2 million (approximately $92.2 million), due 2023 (the "Yen Term Loan due 2023"); • A Canadian dollar denominated term loan to Aramark Canada Ltd. in the amount of CAD341.7 million (approximately $256.7 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 €116.5 million (approximately $136.4 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 October 2, 2020, there was approximately $80.1 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 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 B due 2024, the U.S. Term Loan B due 2025 and the U.S. Term Loan B due 2027 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 October 2, 2020 - 1.625%) 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 October 2, 2020 - 0.625%) 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 2020 Refinancing Transactions On January 15, 2020, ASI entered into Amendment No. 8 to the Credit Agreement. Amendment No. 8 provided for an incremental, senior secured credit facility under the Credit Agreement, the U.S. Term Loan B due 2027, comprised of a U.S. dollar denominated term loan made to ASI in an amount equal to $900.0 million, due January 15, 2027. The U.S. Term Loan B due 2027 was borrowed with an original issue discount of 0.125%. The net proceeds from the U.S. Term Loan B due 2027 were used to redeem the aggregate $900.0 million principal amount outstanding on ASI’s 5.125% Senior Notes due 2024 (the “2024 Notes”) at a redemption price of 102.563% of the aggregate principal amount and to pay accrued interest, certain fees and related expenses. The Company recorded $20.9 million of charges to "Interest and Other Financing Costs, net" in the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020, consisting of the payment of a $23.1 million call premium and a $2.2 million non-cash gain for the write-off of unamortized debt premium and unamortized deferred financing costs on the 2024 Notes. The Company capitalized third-party costs of approximately $6.6 million related to banker fees, rating agency fees and legal fees directly attributable to the U.S. Term Loan B due 2027, which are included in "Long-Term Borrowings" on the Consolidated Balance Sheets. Amounts paid for the call premium and capitalized third-party costs are included within "Other financing activities" on the Consolidated Statements of Cash Flows for the fiscal year ended October 2, 2020. The U.S. Term Loan B due 2027 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 and U.S. Term Loan B due 2025, in each case, outstanding under 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 above. 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 (Loss) Income for fiscal 2018 for the write-off of debt issuance costs. 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 the Company 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 step-downs 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 non-ordinary 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 2027 in connection with any repricing transaction (as defined in the Credit Agreement) effected prior to January 16, 2021, a 1% prepayment premium. Prepaid term loans may not be reborrowed. The Company made optional prepayments of approximately $500.0 million and $260.4 million of outstanding U.S. dollar term loans during fiscal 2019 and fiscal 2018, 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 2.08%, 2.78% and 4.17% per annum of the outstanding principal amount as of October 2, 2020 during the next three years, 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 1.94%, 2.78% and 4.17% per annum of the outstanding principal amount as of October 2, 2020 during the next three years, with the remaining balance due at maturity. The Company is required to make quarterly principal repayments on the U.S. Term Loan B due 2027 in quarterly amounts of 1.01% per annum of the outstanding principal amount as of October 2, 2020, 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 (or any indebtedness that refinances its subordinated debt); and fundamentally change ASI's business. The Credit Agreement also contains certain customary affirmative covenants, such as financial and other reporting, and certain events of default. At October 2, 2020, 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 5.125x. Consolidated total indebtedness secured by a lien is defined in the Credit Agreement as total indebtedness consisting of debt for borrowed money, finance 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 in 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, U.S. Term Loan B due 2025 and U.S. Term Loan B due 2027 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. On April 22, 2020, as a result of the impact of COVID-19 on the Company's business, ASI entered into Amendment No. 9 ("Amendment No. 9") to the Credit Agreement. Amendment No. 9 provides for a covenant waiver period which suspends the Consolidated Secured Debt Ratio covenant required under the credit agreement for four fiscal quarters, commencing with the fourth quarter of fiscal 2020 through the third quarter of fiscal 2021, subject to, among other things, ongoing compliance with a minimum liquidity condition of $400.0 million and restrictions on making certain restricted payments (including share repurchases) and investments in unrestricted subsidiaries, in each case, as set forth in Amendment No. 9. If ASI ceases to be in compliance with Amendment No. 9 at any time during the covenant waiver period and is otherwise not in compliance with the Consolidated Secured Debt Ratio covenant required under the Credit Agreement, this will cause an event of default under the Credit Agreement, and if such non-compliance is not waived, certain lenders under the senior secured credit facilities could elect to declare all amounts outstanding under the senior secured credit facilities to be immediately due and payable and terminate all commitments to extend further credit under such facilities. When the Consolidated Secured Debt Ratio covenant is once again effective for ASI in the fourth quarter of fiscal 2021, the trailing twelve month period will consist of results from the third quarter of fiscal 2019 through the first quarter of fiscal 2020 plus the fourth quarter of fiscal 2021, excluding the results of the second quarter of fiscal 2020 through the third quarter of fiscal 2021. This exclusion is intended to prevent the effects of COVID-19 from impacting the covenant calculation. 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 2.00x 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 2.58x for the fiscal year ended October 2, 2020. 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 6.375% Senior Notes due 2025 On April 27, 2020, ASI issued $1,500.0 million aggregate principal amount of 6.375% Senior Notes due May 1, 2025 (the "6.375% 2025 Notes"). ASI has used and intends to continue to use the net proceeds from the 6.375% 2025 Notes for general corporate purposes. The Company capitalized third-party costs of approximately $22.3 million directly attributable to the 6.375% 2025 Notes, which are included in "Long-Term Borrowings" on the Consolidated Balance Sheets and within "Other financing activities" on the Consolidated Statements of Cash Flows for the fiscal year ended October 2, 2020. The 6.375% 2025 Notes were issued pursuant to an indenture, dated as of April 27, 2020 (the "6.375% 2025 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 6.375% 2025 Notes were issued at par. The 6.375% 2025 Notes are senior unsecured obligations of ASI. The 6.375% 2025 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 6.375% 2025 Notes are guaranteed on a senior, unsecured basis by the Company and substantially all of the domestic subsidiaries of ASI. The guarantees of the 6.375% 2025 Notes rank equal in right of payment to all of the senior obligations of such guarantor. The 6.375% 2025 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 6.375% 2025 Notes. Interest on the 6.375% 2025 Notes is payable on May 1 and November 1 of each year, commencing on November 1, 2020. In the event of certain types of changes of control, the holders of the 6.375% 2025 Notes may require ASI to purchase for cash all or a portion of their 6.375% 2025 Notes at a purchase price equal to 101% of the principal amount of such 6.375% 2025 Notes, plus accrued and unpaid interest, if any, to, but not including, the purchase date. At any time prior to May 1, 2022, ASI has the option to redeem all or a part of the 6.375% 2025 Notes at a purchase price equal to 100% of the principal amount of such 6.375% 2025 Notes plus an applicable premium and accrued and unpaid interest, if any, to but not including the date of redemption. In addition, prior to May 1, 2022, ASI has the option to redeem up to 40% of the aggregate principal amount of all 6.375% 2025 Notes at a purchase price equal to 106.375% of the principal amount of such 6.375% 2025 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 6.375% 2025 Notes originally issued remain outstanding immediately after the purchase and the redemption occurs within 90 days of the closing date of the equity offering. The 6.375% 2025 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 6.375% 2025 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 6.375% 2025 Notes to become or to be declared due and payable. Further, a failure to pay any obligations under the 6.375% 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. 5.000% 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" on 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, including the other senior notes and obligations under the Credit Agreement. 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 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 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 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 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Oct. 02, 2020 | |
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 $2.9 billion notional amount of outstanding interest rate swap agreements as of October 2, 2020, which fix the rate on a like amount of variable rate borrowings through January of fiscal 2025. During fiscal 2020, the Company entered into approximately $800.0 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 $425.0 million matured during fiscal 2020 . 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 October 2, 2020 and September 27, 2019 , approximately ($87.6) million and ($31.1) million, respectively, of unrealized net of tax losses related to the interest rate swaps were included in "Accumulated other comprehensive loss." The following table summarizes the effect of the Company's derivatives designated as cash flow hedging instruments on Other comprehensive income (loss) (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Interest rate swap agreements (1) $ (110,817) $ (84,392) $ 55,445 (1) Unrealized loss during fiscal 2020 was impacted by changes in interest rates due to actions taken by the federal government in response to COVID-19. 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 October 2, 2020 , the Company has contracts for approximately 11.1 million gallons outstanding through fiscal 2021. 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 $1.3 million and $4.1 million for fiscal 2020 and fiscal 2019, respectively, and not material in fiscal 2018. The change in fair value for unsettled contracts is included in "Selling and general corporate expenses" on the Consolidated Statements of (Loss) Income. When the contracts settle, the gain or loss is recorded to "Cost of services provided" on the Consolidated Statements of (Loss) Income. As of October 2, 2020, the Company had foreign currency forward exchange contracts outstanding with nominal notional amounts 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 17 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 October 2, 2020 September 27, 2019 ASSETS Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ — $ 64 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accounts payable 1,494 — Interest rate swap agreements Other Noncurrent Liabilities 116,882 43,112 118,376 43,112 Not designated as hedging instruments: Foreign currency forward exchange contracts Accounts Payable 121 — Gasoline and diesel fuel agreements Accounts Payable 1,805 462 $ 120,302 $ 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 the Company's derivatives not designated as hedging instruments in the Consolidated Statements of (Loss) Income (in thousands): Fiscal Year Ended Income Statement Location October 2, 2020 September 27, 2019 September 28, 2018 Designated as hedging instruments: Interest rate swap agreements Interest and Other Financing Costs, net $ 34,409 $ (6,484) $ 5,185 Not designated as hedging instruments: Gasoline and diesel fuel agreements Cost of services provided / Selling and general corporate expenses 5,768 6,168 (7,360) Foreign currency forward exchange contracts Interest and Other Financing Costs, net 185 145 (67) 5,953 6,313 (7,427) $ 40,362 $ (171) $ (2,242) The Company has an outstanding Japanese yen denominated term loan in the amount of ¥9,708.2 million. The term loan was designated as a hedge of the Company's net Japanese currency exposure represented by the equity investment in the Company's Japanese affiliate, AIM Services Co., Ltd. Additionally, the Company has a Euro denominated term loan in the amount of €116.5 million. The term loan was designated as a hedge of the Company's net Euro currency exposure represented by certain holdings in the Company's European affiliates. At October 2, 2020 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Oct. 02, 2020 | |
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 the 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. Disaggregation of Revenue The following table presents revenue disaggregated by revenue source (in millions): Fiscal Year Ended October 2, 2020 (1) September 27, 2019 FSS United States: Business & Industry $ 1,097.3 $ 1,587.0 Education 2,416.4 3,228.8 Healthcare 824.6 933.5 Sports, Leisure & Corrections 1,535.8 2,557.5 Facilities & Other 1,492.6 1,591.8 Total FSS United States 7,366.7 9,898.6 FSS International: Europe 1,473.5 2,044.4 Rest of World 1,472.3 1,698.5 Total FSS International 2,945.8 3,742.9 Uniform 2,517.1 2,585.8 Total Revenue $ 12,829.6 $ 16,227.3 (1) Fiscal 2020 revenue negatively impacted by COVID-19. 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 8.2 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. Employee sales commissions are recorded within "Other Assets" on the Consolidated Balance Sheets (see Note 1). Leasehold improvements and costs to fulfill contracts include 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. As of October 2, 2020 and September 27, 2019, the Company had $776.1 million and $785.4 million of leasehold improvements capitalized in "Property and equipment, net" on the Consolidated Balance Sheets. Cost to fulfill - Client is recorded within "Other Assets" on the Consolidated Balance Sheets (see Note 1). 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. Due to the Company's adoption of ASC 842, in fiscal 2020, all long-term prepaid rent balances were reclassified to "Operating Lease Right-of use Assets" on the Consolidated Balance Sheets (see Notes 1 and 8). 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 Cost to fulfill - Rental merchandise in-service are recorded within "Other Assets" on the Consolidated Balance Sheets (see Note 1). The following table summarizes the location of the expense recorded in the Consolidated Statements of (Loss) Income related to the Company's contract balances (in millions): Fiscal Year Ended Income Statement Location October 2, 2020 September 27, 2019 Employee sales commissions Cost of services provided $ 21.8 $ 20.0 Leasehold improvements Depreciation and amortization 160.8 149.0 Cost to fulfill - Client Depreciation and amortization 20.8 20.5 Long-term prepaid rent Cost of services provided 23.1 16.0 Cost to fulfill - Rental merchandise in-service Cost of services provided 325.7 318.2 Deferred income is recognized in "Accrued expenses and other current liabilities" on 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. If the Company cannot render its performance obligation according to contract terms after receiving the consideration in advance, amounts may be required contractually to be refunded to the customer. During the fiscal year ended October 2, 2020, deferred income increased related to customer prepayments and decreased related to income recognized during the period as a result of satisfying the performance obligation or return of funds related to non-performance. For the fiscal year ended October 2, 2020, the Company recognized $280.1 million of revenue that was included in deferred income at the beginning of the period. Deferred income balances are summarized in the following table (in millions): October 2, 2020 September 27, 2019 Deferred income (1) $ 263.8 $ 319.0 (1) Due to the impact of COVID-19, the Company refunded approximately $49.2 million of advanced payments for meal plans back to its clients during fiscal 2020. |
Leases
Leases | 12 Months Ended |
Oct. 02, 2020 | |
Leases [Abstract] | |
Leases | LEASES: The Company has lease arrangements primarily related to real estate, vehicles and equipment, which generally have terms of one one As a result of adopting ASC 842 on September 28, 2019 (first day of fiscal 2020), the Company recognized $416.1 million of operating lease liabilities and $558.5 million of operating lease right-of-use assets on its Consolidated Balance Sheets. Operating lease right-of-use assets represent the Company’s right to use the underlying assets for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease liabilities and operating lease right-of-use assets are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. Deferred rent, tenant improvement allowances and prepaid rent are included in the operating lease right-of-use asset balances. Lease expense is recognized on a straight-line basis over the expected lease term. Variable lease payments, which primarily consist of leases associated with the Company's revenue contracts with customers, real estate taxes, common area maintenance charges, insurance costs and other operating expenses, are not included in the operating lease right-of-use asset or operating lease liability balances and are recognized in the period in which the expenses are incurred. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain they will be exercised or not, respectively. Options to extend lease terms that are reasonably certain of exercise are recognized as part of the operating lease right-of-use asset and operating lease liability balances. As permitted under the transition guidance upon adoption of ASC 842, the Company elected the following practical expedients: • the simplified approach to not recast comparative periods and to apply the new lease standard on a prospective basis beginning in the year of initial adoption; • the package of practical expedients to not reassess the lease determination, lease classification or initial direct costs for leases commenced prior to adoption; • the component election to not separate lease and non-lease components in all arrangements that contain a lease; and • the short-term lease recognition exemption whereby lease-related assets and liabilities are not recognized for arrangements with initial lease terms of one year or less. The Company did not elect the use of the hindsight expedient for determining the lease term. The Company is required to discount its future minimum lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. The Company uses its incremental borrowing rate as the discount rate. The Company uses a portfolio approach to determine the incremental borrowing rate based on the geographic location of the lease and the remaining lease term. The incremental borrowing rate is calculated using a base line rate plus an applicable margin. The following table summarizes the location of the operating and finance leases in the Company’s Consolidated Balance Sheets as of October 2, 2020 (in thousands), as well as the weighted average remaining lease term and weighted average discount rate: Leases Balance Sheet Location October 2, 2020 Assets: Operating (1), (2) Operating Lease Right-of-use Assets $ 551,394 Finance Property and Equipment, net 134,080 Total lease assets $ 685,474 Liabilities: Current Operating (2) Current operating lease liabilities $ 71,810 Finance Current maturities of long-term borrowings 29,983 Noncurrent Operating (2) Noncurrent Operating Lease Liabilities 341,667 Finance Long-term borrowings 112,605 Total lease liabilities $ 556,065 Weighted average remaining lease term (in years) Operating leases 8.8 Finance leases 8.5 Weighted average discount rate Operating leases 3.6 % Finance leases 4.2 % (1) Includes $193.6 million of long-term prepaid rent as of October 2, 2020. (2) Includes the write-down of certain rental properties from disposal by abandonment and the write-off of certain right-of-use assets related to client contracts that were reassessed due to the impact of COVID-19 during fiscal 2020 (see Note 1). The following table summarizes the location of lease related costs in the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020 (in thousands): Fiscal Year Ended Lease Cost Income Statement Location October 2, 2020 Operating lease cost (1) : Fixed lease costs Cost of services provided $ 121,434 Variable lease costs (2) Cost of services provided 392,700 Short-term lease costs Cost of services provided 59,865 Finance lease cost (3) : Amortization of right-of-use-assets Depreciation and amortization 30,542 Interest on lease liabilities Interest and Other Financing Costs, net 5,319 Net lease cost $ 609,860 (1) Excludes sublease income, which is immaterial. (2) Includes $375.0 million of costs related to leases associated with revenue contracts with customers for fiscal 2020. These costs represent the rent the Company pays its clients to operate at their locations, typically based on a percentage of sales. Variable lease costs during fiscal 2020 were impacted by COVID-19. (3) Excludes variable lease costs, which are immaterial. Rental expense for all operating leases was $860.6 million and $187.5 million for fiscal 2019 and fiscal 2018, respectively. The increase from fiscal 2018 to fiscal 2019 is due to the Company's adoption of ASC 606 due to leases in the Company's revenue contracts with customers. Supplemental cash flow information related to leases for the period reported is as follows (in thousands): Fiscal Year Ended October 2, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 144,792 Operating cash flows from finance leases 5,341 Financing cash flows from finance leases 34,674 Lease assets obtained in exchange for lease obligations: Operating leases $ 90,533 Finance leases 29,317 (1) Excludes cash paid for variable and short-term lease costs of $414.0 million and $59.9 million, respectively, that are not included within the measurement of lease liabilities. Future minimum lease payments under non-cancelable leases as of October 2, 2020 are as follows (in thousands): Operating leases Finance leases Total 2021 $ 85,005 $ 31,290 116,295 2022 68,500 25,467 93,967 2023 55,331 19,741 75,072 2024 45,581 17,117 62,698 2025 37,409 14,551 51,960 Thereafter 184,776 49,163 233,939 Total future minimum lease payments $ 476,602 $ 157,329 $ 633,931 Less: Interest (63,125) (14,741) (77,866) Present value of lease liabilities $ 413,477 $ 142,588 $ 556,065 Following is a schedule of the future minimum rental and similar commitments under all non-cancelable operating leases 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 |
Leases | LEASES: The Company has lease arrangements primarily related to real estate, vehicles and equipment, which generally have terms of one one As a result of adopting ASC 842 on September 28, 2019 (first day of fiscal 2020), the Company recognized $416.1 million of operating lease liabilities and $558.5 million of operating lease right-of-use assets on its Consolidated Balance Sheets. Operating lease right-of-use assets represent the Company’s right to use the underlying assets for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease liabilities and operating lease right-of-use assets are recognized at the lease commencement date based on the estimated present value of the lease payments over the lease term. Deferred rent, tenant improvement allowances and prepaid rent are included in the operating lease right-of-use asset balances. Lease expense is recognized on a straight-line basis over the expected lease term. Variable lease payments, which primarily consist of leases associated with the Company's revenue contracts with customers, real estate taxes, common area maintenance charges, insurance costs and other operating expenses, are not included in the operating lease right-of-use asset or operating lease liability balances and are recognized in the period in which the expenses are incurred. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain they will be exercised or not, respectively. Options to extend lease terms that are reasonably certain of exercise are recognized as part of the operating lease right-of-use asset and operating lease liability balances. As permitted under the transition guidance upon adoption of ASC 842, the Company elected the following practical expedients: • the simplified approach to not recast comparative periods and to apply the new lease standard on a prospective basis beginning in the year of initial adoption; • the package of practical expedients to not reassess the lease determination, lease classification or initial direct costs for leases commenced prior to adoption; • the component election to not separate lease and non-lease components in all arrangements that contain a lease; and • the short-term lease recognition exemption whereby lease-related assets and liabilities are not recognized for arrangements with initial lease terms of one year or less. The Company did not elect the use of the hindsight expedient for determining the lease term. The Company is required to discount its future minimum lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. The Company uses its incremental borrowing rate as the discount rate. The Company uses a portfolio approach to determine the incremental borrowing rate based on the geographic location of the lease and the remaining lease term. The incremental borrowing rate is calculated using a base line rate plus an applicable margin. The following table summarizes the location of the operating and finance leases in the Company’s Consolidated Balance Sheets as of October 2, 2020 (in thousands), as well as the weighted average remaining lease term and weighted average discount rate: Leases Balance Sheet Location October 2, 2020 Assets: Operating (1), (2) Operating Lease Right-of-use Assets $ 551,394 Finance Property and Equipment, net 134,080 Total lease assets $ 685,474 Liabilities: Current Operating (2) Current operating lease liabilities $ 71,810 Finance Current maturities of long-term borrowings 29,983 Noncurrent Operating (2) Noncurrent Operating Lease Liabilities 341,667 Finance Long-term borrowings 112,605 Total lease liabilities $ 556,065 Weighted average remaining lease term (in years) Operating leases 8.8 Finance leases 8.5 Weighted average discount rate Operating leases 3.6 % Finance leases 4.2 % (1) Includes $193.6 million of long-term prepaid rent as of October 2, 2020. (2) Includes the write-down of certain rental properties from disposal by abandonment and the write-off of certain right-of-use assets related to client contracts that were reassessed due to the impact of COVID-19 during fiscal 2020 (see Note 1). The following table summarizes the location of lease related costs in the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020 (in thousands): Fiscal Year Ended Lease Cost Income Statement Location October 2, 2020 Operating lease cost (1) : Fixed lease costs Cost of services provided $ 121,434 Variable lease costs (2) Cost of services provided 392,700 Short-term lease costs Cost of services provided 59,865 Finance lease cost (3) : Amortization of right-of-use-assets Depreciation and amortization 30,542 Interest on lease liabilities Interest and Other Financing Costs, net 5,319 Net lease cost $ 609,860 (1) Excludes sublease income, which is immaterial. (2) Includes $375.0 million of costs related to leases associated with revenue contracts with customers for fiscal 2020. These costs represent the rent the Company pays its clients to operate at their locations, typically based on a percentage of sales. Variable lease costs during fiscal 2020 were impacted by COVID-19. (3) Excludes variable lease costs, which are immaterial. Rental expense for all operating leases was $860.6 million and $187.5 million for fiscal 2019 and fiscal 2018, respectively. The increase from fiscal 2018 to fiscal 2019 is due to the Company's adoption of ASC 606 due to leases in the Company's revenue contracts with customers. Supplemental cash flow information related to leases for the period reported is as follows (in thousands): Fiscal Year Ended October 2, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 144,792 Operating cash flows from finance leases 5,341 Financing cash flows from finance leases 34,674 Lease assets obtained in exchange for lease obligations: Operating leases $ 90,533 Finance leases 29,317 (1) Excludes cash paid for variable and short-term lease costs of $414.0 million and $59.9 million, respectively, that are not included within the measurement of lease liabilities. Future minimum lease payments under non-cancelable leases as of October 2, 2020 are as follows (in thousands): Operating leases Finance leases Total 2021 $ 85,005 $ 31,290 116,295 2022 68,500 25,467 93,967 2023 55,331 19,741 75,072 2024 45,581 17,117 62,698 2025 37,409 14,551 51,960 Thereafter 184,776 49,163 233,939 Total future minimum lease payments $ 476,602 $ 157,329 $ 633,931 Less: Interest (63,125) (14,741) (77,866) Present value of lease liabilities $ 413,477 $ 142,588 $ 556,065 Following is a schedule of the future minimum rental and similar commitments under all non-cancelable operating leases 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 |
Employee Pension and Profit Sha
Employee Pension and Profit Sharing Plans | 12 Months Ended |
Oct. 02, 2020 | |
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 2020 , fiscal 2019 and fiscal 2018 was $17.4 million, $41.5 million and $22.5 million, respectively. The increase in the expense in fiscal 2019 was due to additional employer matching contributions as a result of 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 2020 , fiscal 2019 and fiscal 2018 was $13.7 million, $11.7 million and $8.6 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 2020 , fiscal 2019 and fiscal 2018 (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Service cost $ 2,996 $ 6,391 $ 7,121 Interest cost 9,180 11,287 10,579 Expected return on plan assets (18,883) (22,970) (22,864) Settlements and curtailments — 283 3,312 Amortization of prior service cost 26 104 116 Recognized net loss 2,324 1,094 1,646 Net periodic pension income $ (4,357) $ (3,811) $ (90) 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: October 2, 2020 September 27, 2019 Benefit obligation, beginning $ 401,207 $ 366,426 Foreign currency translation 6,067 (13,097) Service cost 2,996 6,391 Interest cost 9,180 11,287 Employee contributions 853 2,249 Actuarial loss 32,769 49,707 Benefits paid (16,739) (16,681) Settlements and curtailments (1) — (5,075) Benefit obligation, ending $ 436,333 $ 401,207 Change in plan assets: Fair value of plan assets, beginning $ 425,967 $ 409,826 Foreign currency translation 5,980 (14,360) Employer contributions 4,152 10,520 Employee contributions 853 2,249 Actual return on plan assets 18,840 39,280 Benefits paid (16,739) (16,681) Settlements (1) — (4,867) Fair value of plan assets, end 439,053 425,967 Funded Status at end of year $ 2,720 $ 24,760 (1) Fiscal 2019 includes the impact of closing two of the AmeriPride plans. Amounts recognized in the Consolidated Balance Sheets consist of the following (in thousands): October 2, 2020 September 27, 2019 Noncurrent benefit asset (included in Other Assets) $ 16,617 $ 35,459 Noncurrent benefit liability (included in Other Noncurrent Liabilities) (13,897) (10,699) Net actuarial loss (included in Accumulated other comprehensive loss before taxes) 111,035 77,204 The following weighted average assumptions were used to determine pension expense of the respective fiscal years: October 2, 2020 September 27, 2019 Discount rate 2.5 % 3.3 % Rate of compensation increase 1.9 % 2.1 % Long-term rate of return on assets 4.3 % 5.7 % The following weighted average assumptions were used to determine the funded status of the respective fiscal years: October 2, 2020 September 27, 2019 Discount rate 2.4 % 2.5 % Rate of compensation increase 2.0 % 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 October 2, 2020 was $435.1 million. During fiscal 2020, settlement gains and actuarial losses of approximately $0.2 million and $33.1 million, respectively, were recognized in other comprehensive loss (before taxes) and $2.3 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 October 2, 2020 expected to be recognized in net periodic pension cost during fiscal 2021 is approximately $2.7 million (before taxes). 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 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 October 2, 2020 and September 27, 2019 (in thousands): October 2, 2020 September 27, 2019 Projected benefit obligation (1) $ 153,338 $ 10,699 Accumulated benefit obligation (1) 152,729 10,506 (1) Increase driven by the UK and AmeriPride U.S. plans switching from asset positions in fiscal 2019 to liability positions in fiscal 2020. Assets of the plans are generally 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. As the Company contemplates or moves toward the wind down of plans, it may shift toward a more conservative investment approach with a higher proportion of fixed income and cash investments to ensure adequate liquidity at the time of wind down. The current overall capital structure and targeted ranges for asset classes are 10-30% invested in equity securities, 50-80% invested in debt securities and 10-20% 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 October 2, 2020 and September 27, 2019 is as follows (see Note 17 for a description of the fair value levels) (in thousands): October 2, 2020 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Cash and cash equivalents and other $ 76,072 $ 76,072 $ — $ — Equity securities: Investment trusts 4,717 4,717 — — Investment funds: Equity funds 74,852 — 74,852 — Fixed income funds 272,349 — 272,349 — Real estate 11,063 — — 11,063 Total $ 439,053 $ 80,789 $ 347,201 $ 11,063 September 27, 2019 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 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 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. 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. Investments in equity securities and equity funds include publicly-traded domestic companies (approximately 36%) and international companies (approximately 64%) that are diversified across industry, country and stock market capitalization. Investments in fixed income funds primarily consist of international corporate bonds and government securities. For equity securities, the investments are predominantly valued using a market approach based on the closing fair market prices of identical instruments in the principal market on which they are traded. For investment funds, 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. Substantially all of the real estate investments are in international markets. During fiscal 2019, in conjunction with the planned wind down of certain Canadian plans, the Company reallocated the plan assets to be entirely invested in debt securities. During fiscal 2020, the Company reallocated plan assets related to the Canadian plans to be a mix of debt securities and cash and cash equivalents in anticipation of the payout of certain plans in fiscal 2021. 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 2021 (1) $ 224,264 Fiscal 2022 7,418 Fiscal 2023 7,650 Fiscal 2024 7,799 Fiscal 2025 8,212 Fiscal 2026 – 2030 44,006 (1) Increase driven by expected payout of certain Canadian plans. 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 2021 are approximately $3.4 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 2020 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 2020 and 2019 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 seriously endangered zone are less than 80% funded and are projected to have an accumulated deficiency in the current plan year or the next six plan years, plans in the endangered zone are less than 80% funded or are projected to have an accumulated funding deficiency in the current plan year or the next six plan years 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 2020, fiscal 2019 and fiscal 2018 contributions. Pension EIN/Pension Pension Protection FIP/RP Status Pending/ Implemented Contributions by the Company Range of Expiration Dates of CBAs 2020 2019 2020 2019 2018 Surcharge National Retirement Fund 13-6130178/ 001 Critical Critical Implemented $ 3,574 $ 4,130 $ 4,147 No 3/6/2020 - 10/1/2023 UNITE HERE Retirement Fund 82-0994119/ 001 Critical Critical Implemented 3,392 4,531 3,686 No 12/15/2019 - 6/30/2023 Local 1102 Retirement Trust 13-1847329/ 001 Seriously Endangered Endangered Implemented 66 110 1,206 No 10/31/2020 Central States SE and SW Areas Pension Plan 36-6044243/ 001 Critical and Declining Critical and Declining Implemented 4,422 4,282 4,128 No 1/31/2007 - 3/31/2023 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 23-2627428/ 001 Critical Critical Implemented 325 361 319 No 1/31/2023 SEIU National Industry Pension Fund (1) 52-6148540/ 001 Critical Critical Implemented 685 623 501 No 4/14/2022 - 12/31/2023 LIUNA National Industrial Pension Fund 52-6074345/ 001 Green Critical Implemented 674 678 620 No 12/31/2020 Other funds 17,073 18,846 18,016 Total contributions $ 30,211 $ 33,561 $ 32,623 (1) Over 75% of the Company's participants in this fund are covered by a single CBA that expires on 12/31/2023. 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 National Retirement Fund 12/31/2018 At the date the Company's financial statements were issued, Forms 5500 were not available for the plan years ending in 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES:The Company accounts for income taxes using the asset and liability method. Under this method, the (benefit) 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 ("DTAs") when it is more likely than not that a tax benefit will not be realized. The components of (loss) income before income taxes by source of (loss) income are as follows (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 United States $ (291,436) $ 418,902 $ 326,277 Non-U.S. (356,283) 137,270 145,599 $ (647,719) $ 556,172 $ 471,876 The (benefit) provision for income taxes consists of (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Current: Federal $ (69,399) $ 8,781 $ (48,249) State and local (4,616) 19,966 11,356 Non-U.S. 21,779 38,456 44,618 (52,236) 67,203 7,725 Deferred: Federal (79,054) 35,251 (113,475) State and local (19,627) 7,683 7,408 Non-U.S. (35,367) (2,431) 1,778 (134,048) 40,503 (104,289) $ (186,284) $ 107,706 $ (96,564) Current taxes receivable of $123.6 million and $35.1 million at October 2, 2020 and September 27, 2019, respectively, are included in "Prepayments and other current assets" on the Consolidated Balance Sheets. Current income taxes payable of $3.1 million and $8.1 million at October 2, 2020 and September 27, 2019 , respectively, are included in "Accrued expenses and other current liabilities" on the Consolidated Balance Sheets. The (benefit) provision for income taxes varies from the amount determined by applying the United States Federal statutory rate to pretax (loss) income as a result of the following (all percentages are as a percentage of (loss) income before income taxes): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 United States statutory income tax rate 21.0 % 21.0 % 24.5 % Increase (decrease) in taxes, resulting from: State income taxes, net of Federal tax benefit 3.0 4.2 3.2 Foreign taxes (1) (3.9) 2.2 3.3 Foreign goodwill impairment (5.0) — — Permanent book/tax differences (0.7) 0.6 (1.2) Uncertain tax positions 0.1 — (0.3) U.S. Tax Reform - Remeasurement of deferred taxes — — (49.3) U.S. Tax Reform - Foreign tax credit valuation allowance — (2.3) 2.8 Stock compensation 3.6 (0.2) — CARES Act - Carryback rate differential 9.8 — — Sale of HCT — (4.4) — Tax credits & other 0.9 (1.7) (3.5) Effective income tax rate 28.8 % 19.4 % (20.5) % (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"), as well as valuation allowances in foreign countries in fiscal 2020 (3.4%). 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 October 2, 2020, certain subsidiaries have recorded DTAs of $90.5 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 NOL carryforwards will not be realized. As a result, the Company has recorded a valuation allowance of approximately $39.0 million on the DTAs related to these state and foreign NOL carryforwards. State NOL carryforwards generally begin to expire in 2024 and foreign NOL carryforwards generally have no expiration date. The Company considers existing evidence, both positive and negative, that could impact the need for valuation allowances against DTAs. Based on cumulative losses and the goodwill impairment recorded in the FSS International segment during the second quarter of fiscal 2020 of $198.6 million (see Note 4) as negative evidence, the Company recorded a valuation allowance against DTAs of certain foreign subsidiaries of approximately $21.4 million in the fiscal year ended October 2, 2020. The goodwill impairment charge is nondeductible for income tax purposes. The Company continues to monitor operating performance in light of COVID-19 and believes that based on future reversals of deferred tax liabilities ("DTLs") and future taxable income, it is more likely than not that the remaining NOL carryforwards and DTAs will be realized. As of October 2, 2020, the Company has approximately $95.7 million of foreign tax credit ("FTC") carryforwards, which begin to expire in 2027, along with approximately $56.7 million of general business credits, which begin to expire in 2035 and approximately $10.7 million of interest restriction carryforwards, which do not expire. As of October 2, 2020 and September 27, 2019, the components of deferred taxes are as follows (in thousands): October 2, 2020 September 27, 2019 Deferred tax liabilities: Property and equipment $ 183,789 $ 137,293 Investments 13,300 11,902 Other intangible assets, including goodwill 500,447 462,637 Cost to fulfill - Rental merchandise in-service 52,334 83,483 Operating Lease Right-of-use Assets 89,464 — Other 45,589 37,309 Gross deferred tax liability 884,923 732,624 Deferred tax assets: Derivatives 30,625 11,949 Insurance 23,784 34,112 Employee compensation and benefits 128,771 113,269 Accruals and allowances 31,218 31,844 Operating lease liabilities 102,259 — NOL/credit carryforwards and other 261,763 56,508 Gross deferred tax asset, before valuation allowances 578,420 247,682 Valuation allowances (38,977) (17,532) Net deferred tax liability $ 345,480 $ 502,474 Rollforward of the valuation allowance is as follows: October 2, 2020 September 27, 2019 Balance, beginning of year $ (17,532) $ (29,023) Additions (1) (21,445) (2,330) Subtractions (2) — 13,821 Balance, end of year $ (38,977) $ (17,532) (1) The additions in both fiscal 2020 and fiscal 2019 were mainly driven by losses in certain foreign subsidiaries. (2) Valuation allowances against FTC carryforwards were released during fiscal 2019 as a result of Treasury Regulations. DTLs of approximately $398.8 million and $519.9 million as of October 2, 2020 and September 27, 2019 , respectively, are included in "Deferred Income Taxes and Other Noncurrent Liabilities" on the Consolidated Balance Sheets. DTAs of approximately $53.3 million and $17.4 million as of October 2, 2020 and September 27, 2019 , respectively, are included in "Other Assets" on the Consolidated Balance Sheets. The Company has approximately $34.6 million of total gross unrecognized tax benefits as of October 2, 2020, of which $32.3 million, if recognized, would impact the effective tax rate and $2.3 million would result in an adjustment to the DTL. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows (in thousands): October 2, 2020 September 27, 2019 Balance, beginning of year $ 36,272 $ 29,089 Additions based on tax positions taken in the current year 1,257 3,713 Additions for tax positions taken in prior years — 6,531 Reductions for remeasurements, settlements and payments (392) (1,484) Reductions due to statute expiration (2,559) (1,577) Balance, end of year $ 34,578 $ 36,272 The Company has approximately $4.6 million and $5.5 million accrued for interest and penalties as of October 2, 2020 and September 27, 2019, respectively, in the Consolidated Balance Sheets and recorded ($0.8) million and $0.6 million in interest and penalties during fiscal 2020 and fiscal 2019, respectively in the Consolidated Statements of (Loss) Income. Interest and penalties related to unrecognized tax benefits are recorded in "(Benefit) Provision for income taxes" on the Consolidated Statements of (Loss) 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 March 27, 2020, the CARES Act was enacted in response to COVID-19. The CARES Act, among other things, permits NOLs incurred in fiscal 2019, 2020 and 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. NOLs arising in fiscal 2019, 2020, or 2021 are created in years that have a 21.0% federal income tax rate. If these NOLs are carried back to years prior to fiscal 2018, the resulting refund would be in years with a 35.0% federal income tax rate. The CARES Act contains modifications on the limitation of business interest for fiscal years 2020 and 2021 to increase the allowable business interest deduction from 30.0% of adjusted taxable income to 50.0% of adjusted taxable income. The CARES Act also includes a technical correction to the TCJA that provides that Qualified Improvement Property ("QIP"), which includes almost any improvement to the interior of leased or owned space, is eligible for bonus depreciation retroactively to the January 1, 2018 effective date of the TCJA. As a result of the CARES Act, the Company recorded a net benefit to the (Benefit) Provision for Income Taxes of approximately $58.4 million during fiscal 2020, of which $63.4 million reflects the NOLs expected to be carried back to Pre-TCJA years at 35.0% as opposed to the current year rate of 21.0%. The Company also re-established certain reserves of approximately $5.0 million, which expired due to statutes but were re-opened due to the carryback period. The NOL carryback generated for the fiscal year ended October 2, 2020 resulted in a $62.1 million income tax receivable, along with $65.1 million of FTCs and $35.9 million of general business credits that will be used to offset future federal income tax liabilities. The Company will continue to monitor and assess the impact the CARES Act and similar legislation in other countries may have on the Company's business and financial results. The effective tax rate for the fiscal year ended October 2, 2020 also includes an income tax benefit of approximately $46.2 million, as a result of an excess tax benefit recognized in relation to equity awards exercised during the fiscal year, including by the former Chairman, President and Chief Executive Officer. This benefit reflects a federal tax rate of 35.0% due to the NOL being carried back to pre-TCJA tax years. On December 22, 2017, “H.R.1,” commonly referred to as the TCJA was signed into U.S. law. The TCJA, 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. As a result of the enactment of the TCJA, the Company was required to recognize the effect of the corporate income tax rate change on its DTAs and DTLs 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 non-cash benefit to the provision (benefit) for income taxes of approximately $237.8 million, which was recorded to the Consolidated Statements of (Loss) Income for the fiscal year ended September 28, 2018. A corresponding reduction to the Company's DTL was also recorded to the Consolidated Balance Sheets during the fiscal year ended September 28, 2018. The TCJA 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 years ended September 27, 2019 and October 2, 2020 . 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"). Undistributed earnings of certain foreign subsidiaries for which no DTL was recorded amounted to approximately $251.1 million and $184.0 million as of October 2, 2020 and September 27, 2019 , respectively. The foreign withholding tax cost associated with remitting these earnings is approximately $14.8 million and $11.0 million as of October 2, 2020 and September 27, 2019 , 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 |
Oct. 02, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY: On August 6, 2019, the Company's Board of Directors (the "Board") authorized a new share repurchase program providing for purchases up to $200.0 million of Aramark common stock through July 2022. During fiscal 2020, the Company completed a repurchase of 0.3 million shares of its common stock for $6.5 million under this program. During fiscal 2019, the Company completed a repurchase of 1.6 million shares of its common stock for $50.0 million under the fiscal 2017 share repurchase program, which expired on February 1, 2019. In accordance with Amendment No. 9 to the Credit Agreement entered into during the third quarter of fiscal 2020, the Company cannot make any future share repurchases as long as the covenant compliance waiver remains in effect (see Note 5). Additionally under the covenant compliance waiver, in order to pay dividends of up to $29.0 million per quarter, the Company must maintain a minimum liquidity of $600.0 million at all times during such quarter. To the extent the Company's liquidity falls below $600.0 million in any quarter, the Company's dividend payments would be limited to $10.0 million for such quarter which would be substantially less than the amount of dividends the Company has historically paid. The following table presents the Company's cash dividend payments to its stockholders (in millions): October 2, 2020 September 27, 2019 September 28, 2018 Dividend payments $ 110.9 $ 108.4 $ 103.1 On November 16, 2020, the Board declared a $0.11 dividend per share of common stock, payable on December 8, 2020, to shareholders of record on the close of business on December 1, 2020. The Company has 100.0 million shares of preferred stock authorized, with a par value of $0.01 per share. At October 2, 2020 and September 27, 2019, zero shares of preferred stock were issued or outstanding. During fiscal 2020, MR BridgeStone Advisor LLC (“Mantle Ridge”), on behalf of itself and its affiliated funds (such funds, together with Mantle Ridge, collectively, the “Mantle Ridge Group”), transferred cash proceeds of $14.8 million to the Company to fulfill obligations deriving from the short-swing profit provisions of Section 16(b) of the Securities Exchange Act of 1934. These obligations related to the Mantle Ridge Group's trading activity in the Company's common stock. The cash proceeds were recorded to "Capital Surplus" on the Consolidated Balance Sheets as of October 2, 2020 and are reflected in "Other financing activities" on the Consolidated Statements of Cash Flows for the fiscal year ended October 2, 2020 . The cash proceeds resulted in the Company recording an income tax provision of $4.1 million in the Consolidated Statements of (Loss) Income for the fiscal year ended of October 2, 2020 . |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Oct. 02, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION: On November 12, 2013, 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. On January 29, 2020, the Company's stockholders approved the Second Amended and Restated 2013 Stock Incentive Plan, which amended and restated the 2013 Stock Plan. The Second Amended and Restated 2013 Stock Incentive Plan provides for up to 7.5 million of new shares authorized for issuance to participants, in addition to the shares that remained available for issuance under the 2013 Stock Plan as of January 29, 2020 that are not subject to outstanding awards under the 2013 Stock Plan. The following table summarizes the share-based compensation expense (reduction) and related information for Time-Based Options ("TBOs"), Retention Time-Based Options ("TBO-Rs"), Performance-Based Options ("PBOs"), Time-Based Restricted Stock Units ("RSUs"), Performance Stock Units ("PSUs") and Deferred Stock Units classified as "Selling and general corporate expenses" on the Consolidated Statements of (Loss) Income (in millions). Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 TBOs $ 10.8 $ 14.7 $ 18.5 TBO-Rs 0.3 — — RSUs 35.1 28.9 24.1 PSUs (1) (17.8) 9.9 43.7 Deferred Stock Units 1.9 1.8 2.0 $ 30.3 $ 55.3 $ 88.3 Taxes related to share-based compensation $ 7.2 $ 13.7 $ 24.1 Cash Received from Option Exercises 90.0 39.1 21.5 Tax Benefit on Share Deliveries (2) 46.2 4.8 7.4 (1) Share-based compensation expense was reduced during fiscal 2020 based on lower than estimated target attainment on plan metrics on each of the fiscal 2018, fiscal 2019 and fiscal 2020 PSU grants, resulting in the reversal of previously recognized share-based compensation expense of $29.8 million. 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 "Prepayments and Other Current Assets" on the Consolidated Statement of Cash Flows. On September 3, 2020, the Board determined a payout level for the fiscal 2018 PSU grants covering a performance period of September 30, 2017 to October 2, 2020 by adjusting the calculation of the performance to moderate the impact of COVID-19 by measuring performance for the first two and a half years of the three year performance period, removing both the results and the portion of the targets attributable to the period when the Company's business was hardest hit by COVID-19. As a result, the Company recognized $3.9 million of additional expense in fiscal 2020 associated with approximately 0.1 million shares due to this modification. No compensation expense was capitalized. Prior to the fourth quarter of fiscal 2018, the Company 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. During the fourth quarter of fiscal 2020, the Company increased its estimated forfeiture assumption to 9.0% per annum based on actual forfeiture activity. The below table summarizes the unrecognized compensation expense as of October 2, 2020 related to non-vested awards and the weighted-average period they are expected to be recognized: Unrecognized Compensation Expense Weighted-Average Period TBOs $ 38.2 2.72 TBO-Rs 22.2 4.49 RSUs 114.9 2.61 PSUs — 1.90 Total $ 175.3 Stock Options Time-Based Options Fiscal 2020 and prior TBO grants vest solely based upon continued employment over a four three The fair value of the TBOs granted was estimated using the Black-Scholes option pricing model. Prior to June of fiscal 2020, the expected volatility was based on a blended average of the historic volatility of the Company's and competitors' stocks over the expected term of the stock options. Beginning in June of fiscal 2020, the expected volatility is based on the historic volatility of the Company's stock 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 October 2, 2020 September 27, 2019 September 28, 2018 Expected volatility 30% 20% 20% Expected dividend yield 1.01% - 2.09% 1.17% - 1.44% 1.03% - 1.11% Expected life (in years) 6.22 6.25 6.25 Risk-free interest rate 0.40% - 1.74% 1.62% - 3.02% 2.25% - 2.94% Weighted-average grant-date fair value $9.07 $8.23 $8.75 A summary of TBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Term Outstanding at September 27, 2019 12,356 $ 28.22 Granted 4,327 $ 33.61 Exercised (5,390) $ 21.72 Forfeited and expired (2,574) $ 36.55 Outstanding at October 2, 2020 8,719 $ 32.45 $ 9,803 7.3 Exercisable at October 2, 2020 3,213 $ 29.49 $ 9,219 4.3 Expected to vest at October 2, 2020 4,839 $ 34.33 $ 481 8.9 Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Total intrinsic value exercised (in millions) $ 114.6 $ 26.8 $ 16.6 Total fair value that vested (in millions) 9.9 16.3 17.3 Retention Time-Based Options In September 2020, the Board granted special stock option awards for fiscal 2021 to its key business leaders. The option awards have exercise prices that are in all cases materially above the trading price of the Company's common stock as of the date of grant. The options are awarded in six tranches, with exercise prices that start at $35 and increase in $10 increments to an $85 exercise price. These awards will vest ratably on the third, fourth and fifth anniversaries of the grant date. The fair value of the TBO-Rs granted was estimated using the Black-Scholes option pricing model, following the same assumptions and methodology used to value the TBOs. The table below presents the weighted average assumptions and related valuations for TBO-Rs. Fiscal Year Ended October 2, 2020 Expected volatility 37.82% Expected dividend yield 1.55% Expected life (in years) 7.00 Risk-free interest rate 0.50% Weighted-average grant-date fair value $3.93 A summary of TBO-R activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Term Outstanding at September 27, 2019 — $ — Granted 5,732 $ 66.15 Exercised — $ — Forfeited and expired — $ — Outstanding at October 2, 2020 5,732 $ 66.15 $ — 9.9 Expected to vest at October 2, 2020 4,275 $ 66.15 $ — 9.9 Performance-Based Options The Company no longer grants PBOs under the 2013 Stock Plan. All PBOs remain exercisable for 10 years from the date of grant. A summary of PBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Term Outstanding at September 27, 2019 1,511 $ 12.77 Granted — $ — Exercised (1,205) $ 12.97 Forfeited and expired — $ — Outstanding at October 2, 2020 306 $ 11.99 $ 4,765 0.9 Exercisable at October 2, 2020 306 $ 11.99 $ 4,765 0.9 The total intrinsic value of PBOs exercised during fiscal 2020, fiscal 2019 and fiscal 2018 was $34.9 million, $8.9 million and $7.4 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 for RSU grants prior to September 2020, subject to the participant's continued employment with the Company through each such anniversary. The Company's annual RSU grants for fiscal 2021 were awarded early in September 2020, 33% of which will vest and be settled in shares on each of the first three 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 27, 2019 2,649 $ 36.89 Granted 3,355 $ 32.80 Vested (925) $ 35.79 Forfeited (453) $ 38.67 Outstanding at October 2, 2020 4,626 $ 34.08 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 both fiscal 2019 and 2018, the Company granted PSUs subject to the level of achievement of adjusted earnings per share and return on invested capital for the cumulative performance period of three years and the participant's continued employment with the Company. The fiscal 2018 grant vested at the end of fiscal 2020 based on approval by the Board (see above). During fiscal 2020, the Company granted PSUs subject to the level of achievement of adjusted revenue growth, adjusted operating income growth, return on invested capital and a total shareholder return multiplier for the cumulative performance period of three years and the participant's continued employment with the Company. The Company is accounting for the fiscal 2020 grant as a performance-based award, with a market condition, valued utilizing the Monte Carlo Simulation pricing model, which calculates multiple potential outcomes for an award and establishes fair value based on the most likely outcome. 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 27, 2019 1,621 $ 36.20 Granted (1) 642 $ 42.99 Vested (590) $ 34.13 Forfeited (358) $ 36.65 Outstanding at October 2, 2020 1,315 $ 37.61 (1) Includes approximately 0.3 million shares resulting from the payout of the fiscal 2017 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 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 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 49,733 deferred stock units during fiscal 2020 . In addition, directors may elect to defer their cash retainer into Deferred Stock Units which are fully vested upon issuance. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Oct. 02, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE: Basic earnings (loss) per share is computed using the weighted average number of common shares outstanding during the periods presented. Diluted earnings (loss) 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 (loss) per share attributable to the Company's stockholders (in thousands, except per share data): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 (Loss) Earnings: Net (loss) income attributable to Aramark stockholders $ (461,529) $ 448,549 $ 567,885 Shares: Basic weighted-average shares outstanding 251,828 246,854 245,771 Effect of dilutive securities (1) — 5,156 7,581 Diluted weighted-average shares outstanding 251,828 252,010 253,352 Basic (Loss) Earnings Per Share: Net (loss) income attributable to Aramark stockholders $ (1.83) $ 1.82 $ 2.31 Diluted (Loss) Earnings Per Share: Net (loss) income attributable to Aramark stockholders $ (1.83) $ 1.78 $ 2.24 (1) Incremental shares of 2.3 million have been excluded from the computation of diluted weighted-average shares outstanding for the fiscal year ended October 2, 2020 because the effect would have been antidilutive due to the net loss attributable to Aramark stockholders during the period. Share-based awards to purchase 7.7 million, 5.2 million and 1.6 million shares were outstanding at October 2, 2020, September 27, 2019 and September 28, 2018 , respectively, but were not included in the computation of diluted (loss) earnings per common share, as their effect would have been antidilutive. In addition, PSUs related to 1.1 million shares, 1.3 million shares and 1.2 million shares were outstanding at October 2, 2020 , September 27, 2019 and September 28, 2018, respectively, but were not included in the computation of diluted (loss) earnings per common share, as the performance targets were not yet met. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Oct. 02, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES: The Company has capital and other purchase commitments of approximately $816.1 million at October 2, 2020 , primarily in connection with commitments for capital projects to help finance improvements or renovations at the facilities in which the Company operates. At October 2, 2020 , the Company also has letters of credit outstanding in the amount of $191.7 million. 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. During fiscal 2019, Eric J. Foss, the Company's former Chairman, President and Chief Executive Officer, stepped down and $10.4 million of cash compensation related charges were recognized related to his separation from the Company. As of October 2, 2020, the Company had $5.5 million of remaining unpaid obligations related to his separation, which are recorded in "Accrued payroll and related expenses" on 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" on the Consolidated Statements of (Loss) Income during fiscal 2019. The settlement charge was paid during the fourth quarter of fiscal 2020 and there is no remaining obligation related to this matter. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Oct. 02, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | QUARTERLY RESULTS (Unaudited): The following tables summarize the Company's unaudited quarterly results for fiscal 2020 and fiscal 2019 (in thousands, except per share amounts): Quarter Ended December 27, 2019 March 27, 2020 June 26, 2020 October 2, 2020 Revenue (1) $ 4,253,597 $ 3,731,559 $ 2,152,253 $ 2,692,150 Cost of services provided (1) 3,768,113 3,407,589 2,265,614 2,552,351 Net income (loss) (1) 145,883 (202,021) (256,308) (148,989) Net income (loss) attributable to Aramark stockholders (1) 145,761 (202,260) (256,440) (148,590) Earnings (Loss) per share: Basic $ 0.59 $ (0.80) $ (1.01) $ (0.59) Diluted 0.57 (0.80) (1.01) (0.59) Dividends declared per common share 0.110 0.110 0.110 0.110 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 (2) 250,676 29,310 83,064 85,414 Net income attributable to Aramark stockholders (2) 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 (1) Fiscal 2020 results were negatively impacted by COVID-19. (2) Fiscal 2019 net income was impacted by the sale of HCT in the first quarter of fiscal 2019 (see Note 2). |
Business Segments
Business Segments | 12 Months Ended |
Oct. 02, 2020 | |
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 not specifically allocated to an individual segment and share-based compensation expense (see Note 12). In the Company's food and support services segments, approximately 73% of the global revenue is related to food services and 27% is related to facilities services. During fiscal 2020, each reportable segment recorded severance charges related to COVID-19 adding up to approximately $145.8 million (see Note 3). During fiscal 2020, the Company reversed $29.8 million of previously recognized share-based compensation expense based on lower than estimated target attainment on plan metrics on each of the fiscal 2018, fiscal 2019 and fiscal 2020 PSU grants (see Note 12). During fiscal 2020 and fiscal 2019, the Company received proceeds of approximately $15.3 million and $16.2 million, respectively, 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” on the Consolidated Statements of (Loss) Income. During the second quarter of fiscal 2020, the Company recognized a $198.6 million impairment charge related to one reporting unit in its FSS International segment (see Note 4). During fiscal 2019, the Company incurred expenses of $74.9 million related to special recognition awards, retirement contributions and employee training costs, which were paid with the proceeds 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 . Financial information by segment follows (in millions): Revenue (1)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 FSS United States $ 7,366.7 $ 9,898.6 $ 10,137.8 FSS International 2,945.8 3,742.9 3,655.8 Uniform 2,517.1 2,585.8 1,996.0 $ 12,829.6 $ 16,227.3 $ 15,789.6 Operating Income (Loss) (1)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 FSS United States $ 5.3 $ 716.8 $ 682.7 FSS International (344.2) 142.7 142.2 Uniform 171.5 191.3 181.4 (167.4) 1,050.8 1,006.3 Corporate (97.5) (159.6) (187.9) Operating (Loss) Income (264.9) 891.2 818.4 Interest and Other Financing Costs, net (382.8) (335.0) (346.6) (Loss) Income Before Income Taxes $ (647.7) $ 556.2 $ 471.8 Depreciation and Amortization (2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 FSS United States $ 379.2 $ 381.6 $ 405.0 FSS International 76.2 69.4 64.8 Uniform 137.2 138.7 123.4 Corporate 2.6 2.9 3.0 $ 595.2 $ 592.6 $ 596.2 Capital Expenditures and Other (1)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018* FSS United States $ 310.0 $ 375.9 $ 494.3 FSS International 48.9 69.4 84.1 Uniform 58.8 61.0 332.5 Corporate 2.1 0.1 1.2 $ 419.8 $ 506.4 $ 912.1 * Includes amounts acquired in business combinations. Identifiable Assets (1)(2) October 2, 2020** September 27, 2019 FSS United States $ 8,171.6 $ 8,368.1 FSS International 1,963.2 2,039.2 Uniform 3,159.9 3,118.7 Corporate*** 2,418.0 210.3 $ 15,712.7 $ 13,736.3 ** Includes capitalization of Operating Lease Right-of-use Assets. *** Fiscal 2020 includes cash on hand from borrowings. 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)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 United States $ 9,560.9 $ 12,070.0 $ 11,795.6 Foreign 3,268.7 4,157.3 3,994.0 $ 12,829.6 $ 16,227.3 $ 15,789.6 Property and Equipment, net (1) October 2, 2020 September 27, 2019 United States $ 1,759.2 $ 1,854.7 Foreign 291.7 327.1 $ 2,050.9 $ 2,181.8 (1) Revenue, operating income (loss), capital expenditures and other and identifiable assets for all segments in fiscal 2020 were negatively impacted by COVID-19. (2) The adoption of the new ASU related to revenue recognition in fiscal 2019 impacted each of the financial information categories presented. 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). |
Fair Value of Financial Assets
Fair Value of Financial Assets and Financial Liabilities | 12 Months Ended |
Oct. 02, 2020 | |
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 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Oct. 02, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Rollforward of the valuation allowance is as follows: October 2, 2020 September 27, 2019 Balance, beginning of year $ (17,532) $ (29,023) Additions (1) (21,445) (2,330) Subtractions (2) — 13,821 Balance, end of year $ (38,977) $ (17,532) (1) The additions in both fiscal 2020 and fiscal 2019 were mainly driven by losses in certain foreign subsidiaries. (2) Valuation allowances against FTC carryforwards were released during fiscal 2019 as a result of Treasury Regulations. ARAMARK AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE FISCAL YEARS ENDED OCTOBER 2, 2020, SEPTEMBER 27, 2019 AND SEPTEMBER 28, 2018 Additions Reductions Balance, Beginning of Period Charged to Income Deductions from Reserves (1) Balance, End of Period Description Fiscal Year 2020 Reserve for doubtful accounts, advances & current notes receivable $ 49,566 $ 64,655 $ 39,296 $ 74,925 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 (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 |
Oct. 02, 2020 | |
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: • 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, including personal protective equipment ("PPE"), 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 | 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 year ended October 2, 2020 was a fifty-three week period and the fiscal years ended September 27, 2019 and September 28, 2018 were each fifty-two week periods. |
New Accounting Standard Updates | New Accounting Standards Updates Adopted Standards In March 2019, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which provided clarification regarding three issues related to the lease recognition standard. The guidance was effective for the Company in the first quarter of fiscal 2020 when the lease accounting standard was adopted. See below for further discussion regarding the impact of this standard. In July 2018, the FASB issued two ASUs regarding the lease recognition standard. The guidance provided clarification on issues identified regarding the adoption of the standard, provided an additional transition method to adopt the standard and provided an additional practical expedient to lessors. The guidance was effective for the Company in the first quarter of fiscal 2020 when the lease accounting standard was adopted. 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 was 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 adopted the remaining amendments of the pronouncement in the first quarter of fiscal 2020, which did not have 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 (the "TCJA") from accumulated other comprehensive income to retained earnings. The guidance was effective for the Company in the first quarter of fiscal 2020. The Company adopted the guidance in the first quarter of fiscal 2020, which did not have an impact on the consolidated financial statements. The Company did not elect to reclassify the stranded income tax effects resulting from the TCJA from accumulated other comprehensive income to retained earnings. In September 2017, the FASB issued an ASU to provide additional implementation guidance with respect to the lease accounting standard. The guidance was effective for the Company in the first quarter of fiscal 2020. The Company adopted the standard in the first quarter of fiscal 2020 in conjunction with the lease recognition standard. See below for further discussion regarding the impact of the lease accounting provisions related to this standard. In February 2016, the FASB issued an ASU requiring lessees to recognize most leases on their balance sheets as operating lease liabilities with corresponding operating lease right-of-use assets and to disclose key information about lease arrangements. Recognition of expense on the Consolidated Statements of (Loss) Income continues in a manner similar to previous guidance. The Company adopted this guidance on September 28, 2019 (first day of fiscal 2020). In connection with the new lease guidance, the Company completed a comprehensive review of its lease arrangements in order to determine the impact of this ASU on its consolidated financial statements and related disclosures. The Company identified and implemented appropriate changes to business processes, controls and systems to support recognition and disclosure under the new standard. The Company adopted Accounting Standards Codification 842 (“ASC 842” or the "new lease standard") using the modified retrospective transition approach with an adjustment that recognized "Operating Lease Right-of-use Assets," "Current operating lease liabilities" and "Noncurrent Operating Lease Liabilities" on the Consolidated Balance Sheets on September 28, 2019. Comparative period information and disclosures were not revised as a result of the recognition and measurement of leases. Adoption of the new lease standard resulted in the recognition of operating lease liabilities and associated operating lease right-of-use assets of approximately $416.1 million and $558.5 million, respectively, as of September 28, 2019 on the Consolidated Balance Sheets. Deferred rent, tenant improvement allowances and prepaid rent, including $166.9 million of long-term prepaid rent as of September 28, 2019 associated with certain leases at client locations, were reclassified into operating lease right-of-use assets. There was no material impact to the Consolidated Statements of (Loss) Income or Consolidated Statements of Cash Flows as a result of adoption. See Note 8 for further information on the impact of adopting the new lease standard. Standards Not Yet Adopted (from most to least recent date of issuance) In March 2020, the FASB issued an ASU which provides optional expedients that may be adopted and applied through December 2022 to assist with the discontinuance of LIBOR. The expedients allow companies to ease the potential accounting burden when modifying contracts and hedging relationships that use LIBOR as a reference rate, if certain criteria are met. During the second quarter of fiscal 2020, the Company adopted the optional expedient to assert probability of forecasted hedged transactions occurring on its interest rate swap derivative contracts regardless of any expected contract modifications related to reference reform. Other optional expedients related to hedging relationships may be contemplated in the future resulting from reference rate reform. The Company reviewed its portfolio of debt agreements, lease agreements and other contracts and determined that only its debt agreements will be impacted by this standard, as the lease agreements and other contracts do not use LIBOR as a reference rate. The Company is currently evaluating the impact of the remaining amendment of this standard. In January 2020, the FASB issued an ASU which provides clarification and improvements to existing guidance related to accounting for certain equity securities upon the application or discontinuation of equity method accounting and the measurement of forward contracts and purchased options on certain securities. 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 this standard. In December 2019, the FASB issued an ASU which simplifies the accounting for income taxes and clarifies and amends existing income tax guidance. Impacted areas include intraperiod tax allocations, interim period taxes, deferred tax liabilities with outside basis differences, franchise taxes and transactions which result in the "step-up" of goodwill. 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 this standard. In November 2019, the FASB issued an ASU which provides clarification and improvements to existing guidance related to the credit losses on financial instruments standard. The Company will adopt this guidance in the first quarter of fiscal 2021 when the credit losses on financial instruments standard is adopted. The adoption of this guidance will not have a material impact on the Company’s financial statements or disclosures. 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 Company will adopt this guidance in the first quarter of fiscal 2021 when the credit losses on financial instruments standard is adopted. The adoption of this guidance will not have a material impact on the Company’s financial statements or disclosures. 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 will be adopted in the first quarter of fiscal 2021. The adoption of the amendment will not have a material impact on the Company’s financial statements or disclosures. The Company adopted the guidance related to financial instruments ASU in the first quarter of 2019 and the derivatives and hedging in the first quarter of fiscal 2020, which did not have a material impact on the consolidated financial statements. 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 this standard. In August 2018, the FASB issued an ASU which adds, modifies and removes several disclosure requirements related to fair value measurements. The Company will adopt this guidance in the first quarter of fiscal 2021 and the pronouncement will not have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued an ASU to require entities to account for expected credit losses on financial instruments including trade receivables. The expected credit loss model will replace the existing incurred credit loss model, that generally requires a loss to be incurred before it is recognized. The forward-looking model will require the Company to consider historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount in estimating credit losses and is expected to result in earlier recognition of allowances for credit losses. The amended guidance requires financial assets that are measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of financial assets. The guidance will also require enhanced disclosures. The Company will adopt this guidance in the first quarter of fiscal 2021 and any impact will be applied through a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. The adoption of this guidance will not have a material impact on the Company’s financial statements or disclosures. |
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 |
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 (Loss)Comprehensive income (loss) includes all changes to stockholders' equity during a period, except those resulting from investments by and distributions to stockholders. Components of comprehensive income (loss) 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 TranslationGains 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. Beginning in fiscal 2018, Argentina was determined to have a highly inflationary economy. As a result, the Company remeasures the financial statements of Argentina's operations in accordance with the accounting guidance for highly inflationary economies. |
Current Assets | Current Assets The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Beginning 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 regulations within its domicile of Bermuda, including regulations established by the Bermuda Monetary Authority (the "BMA") relating to levels of liquidity and solvency as such concepts are defined by the BMA. The Captive was in compliance with these regulations as of October 2, 2020. 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 October 2, 2020, cash and cash equivalents at the Captive was $92.1 million. |
Property and Equipment | Property and EquipmentProperty 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 three |
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 |
Oct. 02, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Comprehensive Income | The summary of the components of comprehensive (loss) income is as follows (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 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 (loss) income $ (461,435) $ 448,466 $ 568,440 Pension plan adjustments (33,831) 8,162 (25,669) (29,137) 6,543 (22,594) 29,650 (9,003) 20,647 Foreign currency translation adjustments (6,348) (1,470) (7,818) (34,099) (209) (34,308) (31,003) (250) (31,253) Cash flow hedges: Unrealized (losses) gains arising during the period (110,817) 28,812 (82,005) (84,392) 21,942 (62,450) 55,445 (16,134) 39,311 Reclassification adjustments 34,409 (8,946) 25,463 (6,484) 1,686 (4,798) 5,185 (1,510) 3,675 Share of equity investee's comprehensive (loss) income (264) — (264) (1,592) — (1,592) 157 — 157 Other comprehensive (loss) income (116,851) 26,558 (90,293) (155,704) 29,962 (125,742) 59,434 (26,897) 32,537 Comprehensive (loss) income (551,728) 322,724 600,977 Less: Net income (loss) attributable to noncontrolling interest 94 (83) 555 Comprehensive (loss) income attributable to Aramark stockholders $ (551,822) $ 322,807 $ 600,422 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): October 2, 2020 September 27, 2019 Pension plan adjustments $ (72,891) $ (47,222) Foreign currency translation adjustments (135,937) (128,119) Cash flow hedges (87,598) (31,056) Share of equity investee's accumulated other comprehensive loss (10,832) (10,568) $ (307,258) $ (216,965) |
Schedule of Components of Inventories | The components of inventories are as follows: October 2, 2020 September 27, 2019 Food (1) 42.7 % 54.3 % Career apparel and linens (2) 52.2 % 40.5 % Parts, supplies and novelties 5.1 % 5.2 % 100.0 % 100.0 % (1) Food inventory declined during fiscal 2020 as a result of reduced operations from the COVID-19 pandemic ("COVID-19"). (2) Career apparel and linens inventory increased during fiscal 2020 driven by increased production and distribution of PPE in the Uniform segment in response to COVID-19. |
Schedule of prepayments and other current assets | Prepayments and other current assets The following table presents details of "Prepayments and other current assets" as presented in the Consolidated Balance Sheets (in thousands): October 2, 2020 September 27, 2019 Prepaid Insurance $ 13,396 $ 13,512 Prepaid Taxes and Licenses 11,130 12,399 Current Income Tax Asset (1) 123,608 35,107 Other Prepaid Expenses 150,810 132,443 $ 298,944 $ 193,461 (1) Fiscal 2020 income tax receivable driven by the net loss position during the year. |
Schedule of Other Assets | Other Assets The following table presents details of "Other Assets" as presented in the Consolidated Balance Sheets (in thousands): October 2, 2020 September 27, 2019 Long-term prepaid rent (1) $ — $ 166,931 Cost to fulfill - Client (1) 113,940 109,401 Cost to fulfill - Rental merchandise in-service (2) 311,238 356,853 Long-term receivables 28,460 27,574 Miscellaneous investments (3) 262,609 264,452 Computer software costs, net (4) 177,136 170,510 Employee sales commissions (5) 122,011 111,001 Other (6) 142,712 137,084 $ 1,158,106 $ 1,343,806 (1) Prior to the Company's adoption of ASC 606, Revenue from Contracts with Customers , in fiscal 2019, client contract investments generally represented a cash payment provided by the Company for 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 during fiscal 2018. Subsequent to adoption of ASC 606 in fiscal 2019, 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). Due to the Company's adoption of ASC 842, Leases , in fiscal 2020, all long-term prepaid rent balances were reclassified to "Operating Lease Right-of-use Assets" (see Note 8). (2) Costs to fulfill - Rental merchandise in-service represent personalized work apparel, linens and other rental items in service at customer locations (see Note 7). (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 $182.9 million and $180.5 million at October 2, 2020 and September 27, 2019, respectively). For investments in 50% or less owned entities, other than those accounted for under the equity method of accounting, the Company measures these investments at cost, less any impairment and adjusted for changes in fair value resulting from observable price changes for an identical or a similar investment of the same issuer due to the lack of readily available fair values related to those investments. The carrying amount of equity investments without readily determinable fair values as of October 2, 2020 and September 27, 2019 was $42.5 million and $42.6 million, 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 (5) Employee sales commissions represent commission payments made to employees related to new or retained business contracts (see Note 7). (6) Other consists primarily of noncurrent deferred tax assets, pension assets, deferred financing costs on certain revolving credit facilities and other noncurrent assets. |
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): October 2, 2020 September 27, 2019 Deferred income (1)(2) $ 291,680 $ 345,840 Accrued client expenses (2) 44,419 105,636 Accrued taxes 53,146 61,816 Accrued insurance (3) and interest 174,048 192,695 Other 376,909 420,249 $ 940,202 $ 1,126,236 (1) Includes consideration received in advance from customers prior to the service being performed ($263.8 million and $319.0 million) or from vendors prior to the goods being consumed ($27.9 million and $26.8 million) in fiscal 2020 and fiscal 2019, respectively. (2) Decreases in fiscal 2020 driven by the impact of COVID-19, as clients ceased or reduced operations. See below and Note 7. (3) The Company is self-insured for certain obligations related to its employee health care benefit programs as well as for certain risks retained under its general liability, automobile liability and workers’ compensation liability programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on our claims history. |
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): October 2, 2020 September 27, 2019 Deferred income taxes (see Note 10) $ 398,777 $ 519,904 Deferred compensation 210,884 212,090 Pension-related liabilities 18,044 21,367 Interest rate swap agreements 116,882 43,112 Insurance reserves (1) 143,923 125,293 Other noncurrent liabilities (2) 210,565 167,056 $ 1,099,075 $ 1,088,822 (1) The Company is self-insured for certain obligations related to its employee health care benefit programs as well as for certain risks retained under its general liability, automobile liability and workers’ compensation liability programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on our claims history. (2) Fiscal 2020 includes the payment deferral related to the employer portion of social security taxes as permitted under the Coronavirus Aid, Relief and Economic Security Act. |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information Fiscal Year Ended (dollars in millions) October 2, 2020 September 27, 2019 September 28, 2018 Interest paid $ 353.6 $ 306.2 $ 307.1 Income taxes paid (refunded) (1) 40.2 139.3 (1.1) (1) During fiscal 2018, the Company was in a net refund position, primarily due to the impact of the TCJA (see Note 10). |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended | |
Oct. 02, 2020 | Sep. 28, 2018 | |
Business Combinations [Abstract] | ||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following tables summarize the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands): Current assets $ 157,614 Noncurrent assets 1,345,532 Total assets $ 1,503,146 Current liabilities $ 111,087 Noncurrent liabilities 5,681 Total liabilities $ 116,768 | The following tables summarize the fair values of the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date (in thousands): Current assets $ 237,807 Noncurrent assets 963,078 Total assets $ 1,200,885 Current liabilities $ 137,867 Noncurrent liabilities 67,590 Total liabilities $ 205,457 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table identifies the Company’s allocations of purchase price to the intangible assets acquired by category: Estimated Fair 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 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 |
Business Acquisition, Pro Forma Information | The following table reflects the unaudited pro forma combined results of operations for the fiscal year ended September 28, 2018 for the Company: Fiscal Year Ended Unaudited (in thousands) September 28, 2018 Total revenue $ 16,014,463 Net income 624,334 |
Severance (Tables)
Severance (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
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 October 2, 2020, which are included in "Accrued payroll and related expenses" on the Consolidated Balance Sheets. (in millions) September 27, 2019 Charges Payments and Other October 2, 2020 Fiscal 2018 Reorganization $ 11.9 $ — $ (9.4) $ 2.5 Fiscal 2020 Reorganization — 145.8 (27.3) 118.5 Total Reorganization $ 11.9 $ 145.8 $ (36.7) $ 121.0 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Assets by Segment | Changes in total goodwill during fiscal 2020 are as follows (in thousands): Segment September 27, 2019 Acquisitions and Divestitures Impairments Translation October 2, 2020 FSS United States $ 3,949,218 $ 4,118 $ — $ (4) $ 3,953,332 FSS International 608,468 220 (198,600) 16,030 426,118 Uniform 961,114 3,307 — (43) 964,378 $ 5,518,800 $ 7,645 $ (198,600) $ 15,983 $ 5,343,828 |
Schedule of other intangible assets | Other intangible assets consist of (in thousands): October 2, 2020 September 27, 2019 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 2,195,700 $ (1,308,002) $ 887,698 $ 2,183,492 $ (1,193,525) $ 989,967 Trade names 1,052,744 (7,805) 1,044,939 1,047,959 (4,360) 1,043,599 $ 3,248,444 $ (1,315,807) $ 1,932,637 $ 3,231,451 $ (1,197,885) $ 2,033,566 |
Schedule of expected amortization expense | Based on the recorded balances at October 2, 2020, total estimated amortization of all acquisition-related intangible assets for fiscal years 2021 through 2025 are as follows (in thousands): 2021 $ 105,917 2022 85,813 2023 78,854 2024 78,453 2025 78,580 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | Long-term borrowings, net, are summarized in the following table (in thousands): October 2, 2020 September 27, 2019 Senior secured revolving credit facility, due October 2023 $ 849,895 $ 51,410 Senior secured term loan facility, due October 2023 485,346 507,887 Senior secured term loan facility, due March 2024 830,133 829,344 Senior secured term loan facility, due March 2025 1,659,194 1,658,026 Senior secured term loan facility, due January 2027 888,540 — 5.125% senior notes, due January 2024 — 902,351 5.000% senior notes, due April 2025 593,381 592,087 3.125% senior notes, due April 2025 (1) 377,960 352,363 6.375% senior notes, due May 2025 1,479,341 — 4.750% senior notes, due June 2026 495,426 494,731 5.000% senior notes, due February 2028 1,138,864 1,137,625 Receivables Facility, due June 2022 315,600 — Finance leases 142,588 148,754 Other 22,155 7,589 9,278,423 6,682,167 Less—current portion (99,915) (69,928) $ 9,178,508 $ 6,612,239 (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 October 2, 2020, annual maturities on long-term borrowings maturing in the next five fiscal years and thereafter (excluding the $61.3 million reduction to long-term borrowings from debt issuance costs, $1.0 million reduction from the discount on the U.S. Term Loan B due 2027 and the October 30, 2020 repayment of $680.0 million of outstanding borrowings under the revolving credit facility in fiscal 2021) are as follows (in thousands): 2021 $ 101,222 2022 404,464 2023 109,917 2024 2,018,862 2025 4,171,386 Thereafter 2,549,665 |
Interest and Other Financing Costs Net | The components of interest and other financing costs, net, are summarized as follows (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Interest expense $ 389,434 $ 352,812 $ 353,048 Interest income (14,990) (28,985) (16,964) Other financing costs 8,356 11,160 10,451 Total $ 382,800 $ 334,987 $ 346,535 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the effect of the Company's derivatives designated as cash flow hedging instruments on Other comprehensive income (loss) (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Interest rate swap agreements (1) $ (110,817) $ (84,392) $ 55,445 (1) Unrealized loss during fiscal 2020 was impacted by changes in interest rates due to actions taken by the federal government in response to COVID-19. |
Schedule of Derivative Instruments, Balance Sheet Presentation | The following table summarizes the location and fair value, using Level 2 inputs (see Note 17 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 October 2, 2020 September 27, 2019 ASSETS Not designated as hedging instruments: Foreign currency forward exchange contracts Prepayments and other current assets $ — $ 64 LIABILITIES Designated as hedging instruments: Interest rate swap agreements Accounts payable 1,494 — Interest rate swap agreements Other Noncurrent Liabilities 116,882 43,112 118,376 43,112 Not designated as hedging instruments: Foreign currency forward exchange contracts Accounts Payable 121 — Gasoline and diesel fuel agreements Accounts Payable 1,805 462 $ 120,302 $ 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 the Company's derivatives not designated as hedging instruments in the Consolidated Statements of (Loss) Income (in thousands): Fiscal Year Ended Income Statement Location October 2, 2020 September 27, 2019 September 28, 2018 Designated as hedging instruments: Interest rate swap agreements Interest and Other Financing Costs, net $ 34,409 $ (6,484) $ 5,185 Not designated as hedging instruments: Gasoline and diesel fuel agreements Cost of services provided / Selling and general corporate expenses 5,768 6,168 (7,360) Foreign currency forward exchange contracts Interest and Other Financing Costs, net 185 145 (67) 5,953 6,313 (7,427) $ 40,362 $ (171) $ (2,242) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenue disaggregated by revenue source (in millions): Fiscal Year Ended October 2, 2020 (1) September 27, 2019 FSS United States: Business & Industry $ 1,097.3 $ 1,587.0 Education 2,416.4 3,228.8 Healthcare 824.6 933.5 Sports, Leisure & Corrections 1,535.8 2,557.5 Facilities & Other 1,492.6 1,591.8 Total FSS United States 7,366.7 9,898.6 FSS International: Europe 1,473.5 2,044.4 Rest of World 1,472.3 1,698.5 Total FSS International 2,945.8 3,742.9 Uniform 2,517.1 2,585.8 Total Revenue $ 12,829.6 $ 16,227.3 (1) Fiscal 2020 revenue negatively impacted by COVID-19. |
Contract with Customer, Asset and Liability | The following table summarizes the location of the expense recorded in the Consolidated Statements of (Loss) Income related to the Company's contract balances (in millions): Fiscal Year Ended Income Statement Location October 2, 2020 September 27, 2019 Employee sales commissions Cost of services provided $ 21.8 $ 20.0 Leasehold improvements Depreciation and amortization 160.8 149.0 Cost to fulfill - Client Depreciation and amortization 20.8 20.5 Long-term prepaid rent Cost of services provided 23.1 16.0 Cost to fulfill - Rental merchandise in-service Cost of services provided 325.7 318.2 October 2, 2020 September 27, 2019 Deferred income (1) $ 263.8 $ 319.0 (1) Due to the impact of COVID-19, the Company refunded approximately $49.2 million of advanced payments for meal plans back to its clients during fiscal 2020. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Leases [Abstract] | |
Assets and Liabilities Lessee | The following table summarizes the location of the operating and finance leases in the Company’s Consolidated Balance Sheets as of October 2, 2020 (in thousands), as well as the weighted average remaining lease term and weighted average discount rate: Leases Balance Sheet Location October 2, 2020 Assets: Operating (1), (2) Operating Lease Right-of-use Assets $ 551,394 Finance Property and Equipment, net 134,080 Total lease assets $ 685,474 Liabilities: Current Operating (2) Current operating lease liabilities $ 71,810 Finance Current maturities of long-term borrowings 29,983 Noncurrent Operating (2) Noncurrent Operating Lease Liabilities 341,667 Finance Long-term borrowings 112,605 Total lease liabilities $ 556,065 Weighted average remaining lease term (in years) Operating leases 8.8 Finance leases 8.5 Weighted average discount rate Operating leases 3.6 % Finance leases 4.2 % (1) Includes $193.6 million of long-term prepaid rent as of October 2, 2020. (2) Includes the write-down of certain rental properties from disposal by abandonment and the write-off of certain right-of-use assets related to client contracts that were reassessed due to the impact of COVID-19 during fiscal 2020 (see Note 1). |
Lease, Cost | The following table summarizes the location of lease related costs in the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020 (in thousands): Fiscal Year Ended Lease Cost Income Statement Location October 2, 2020 Operating lease cost (1) : Fixed lease costs Cost of services provided $ 121,434 Variable lease costs (2) Cost of services provided 392,700 Short-term lease costs Cost of services provided 59,865 Finance lease cost (3) : Amortization of right-of-use-assets Depreciation and amortization 30,542 Interest on lease liabilities Interest and Other Financing Costs, net 5,319 Net lease cost $ 609,860 (1) Excludes sublease income, which is immaterial. (2) Includes $375.0 million of costs related to leases associated with revenue contracts with customers for fiscal 2020. These costs represent the rent the Company pays its clients to operate at their locations, typically based on a percentage of sales. Variable lease costs during fiscal 2020 were impacted by COVID-19. (3) Excludes variable lease costs, which are immaterial. |
Lease, Supplemental Cash Flow Information | Supplemental cash flow information related to leases for the period reported is as follows (in thousands): Fiscal Year Ended October 2, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 144,792 Operating cash flows from finance leases 5,341 Financing cash flows from finance leases 34,674 Lease assets obtained in exchange for lease obligations: Operating leases $ 90,533 Finance leases 29,317 (1) Excludes cash paid for variable and short-term lease costs of $414.0 million and $59.9 million, respectively, that are not included within the measurement of lease liabilities. |
Finance Lease, Liability, Maturity | Future minimum lease payments under non-cancelable leases as of October 2, 2020 are as follows (in thousands): Operating leases Finance leases Total 2021 $ 85,005 $ 31,290 116,295 2022 68,500 25,467 93,967 2023 55,331 19,741 75,072 2024 45,581 17,117 62,698 2025 37,409 14,551 51,960 Thereafter 184,776 49,163 233,939 Total future minimum lease payments $ 476,602 $ 157,329 $ 633,931 Less: Interest (63,125) (14,741) (77,866) Present value of lease liabilities $ 413,477 $ 142,588 $ 556,065 |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancelable leases as of October 2, 2020 are as follows (in thousands): Operating leases Finance leases Total 2021 $ 85,005 $ 31,290 116,295 2022 68,500 25,467 93,967 2023 55,331 19,741 75,072 2024 45,581 17,117 62,698 2025 37,409 14,551 51,960 Thereafter 184,776 49,163 233,939 Total future minimum lease payments $ 476,602 $ 157,329 $ 633,931 Less: Interest (63,125) (14,741) (77,866) Present value of lease liabilities $ 413,477 $ 142,588 $ 556,065 |
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 non-cancelable operating leases 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 |
Employee Pension and Profit S_2
Employee Pension and Profit Sharing Plans - (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
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 2020 , fiscal 2019 and fiscal 2018 (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Service cost $ 2,996 $ 6,391 $ 7,121 Interest cost 9,180 11,287 10,579 Expected return on plan assets (18,883) (22,970) (22,864) Settlements and curtailments — 283 3,312 Amortization of prior service cost 26 104 116 Recognized net loss 2,324 1,094 1,646 Net periodic pension income $ (4,357) $ (3,811) $ (90) |
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: October 2, 2020 September 27, 2019 Benefit obligation, beginning $ 401,207 $ 366,426 Foreign currency translation 6,067 (13,097) Service cost 2,996 6,391 Interest cost 9,180 11,287 Employee contributions 853 2,249 Actuarial loss 32,769 49,707 Benefits paid (16,739) (16,681) Settlements and curtailments (1) — (5,075) Benefit obligation, ending $ 436,333 $ 401,207 Change in plan assets: Fair value of plan assets, beginning $ 425,967 $ 409,826 Foreign currency translation 5,980 (14,360) Employer contributions 4,152 10,520 Employee contributions 853 2,249 Actual return on plan assets 18,840 39,280 Benefits paid (16,739) (16,681) Settlements (1) — (4,867) Fair value of plan assets, end 439,053 425,967 Funded Status at end of year $ 2,720 $ 24,760 (1) Fiscal 2019 includes the impact of closing two of the AmeriPride plans. |
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): October 2, 2020 September 27, 2019 Noncurrent benefit asset (included in Other Assets) $ 16,617 $ 35,459 Noncurrent benefit liability (included in Other Noncurrent Liabilities) (13,897) (10,699) Net actuarial loss (included in Accumulated other comprehensive loss before taxes) 111,035 77,204 |
Schedule of Assumptions Used | The following weighted average assumptions were used to determine pension expense of the respective fiscal years: October 2, 2020 September 27, 2019 Discount rate 2.5 % 3.3 % Rate of compensation increase 1.9 % 2.1 % Long-term rate of return on assets 4.3 % 5.7 % The following weighted average assumptions were used to determine the funded status of the respective fiscal years: October 2, 2020 September 27, 2019 Discount rate 2.4 % 2.5 % Rate of compensation increase 2.0 % 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 October 2, 2020 and September 27, 2019 (in thousands): October 2, 2020 September 27, 2019 Projected benefit obligation (1) $ 153,338 $ 10,699 Accumulated benefit obligation (1) 152,729 10,506 (1) Increase driven by the UK and AmeriPride U.S. plans switching from asset positions in fiscal 2019 to liability positions in fiscal 2020. |
Schedule of Allocation of Plan Assets | The fair value of plan assets for the Company's defined benefit pension plans as of October 2, 2020 and September 27, 2019 is as follows (see Note 17 for a description of the fair value levels) (in thousands): October 2, 2020 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Cash and cash equivalents and other $ 76,072 $ 76,072 $ — $ — Equity securities: Investment trusts 4,717 4,717 — — Investment funds: Equity funds 74,852 — 74,852 — Fixed income funds 272,349 — 272,349 — Real estate 11,063 — — 11,063 Total $ 439,053 $ 80,789 $ 347,201 $ 11,063 September 27, 2019 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs 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 |
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 2021 (1) $ 224,264 Fiscal 2022 7,418 Fiscal 2023 7,650 Fiscal 2024 7,799 Fiscal 2025 8,212 Fiscal 2026 – 2030 44,006 (1) Increase driven by expected payout of certain Canadian plans. |
Schedule of Multiemployer Plans | There have been no significant changes that affect the comparability of fiscal 2020, fiscal 2019 and fiscal 2018 contributions. Pension EIN/Pension Pension Protection FIP/RP Status Pending/ Implemented Contributions by the Company Range of Expiration Dates of CBAs 2020 2019 2020 2019 2018 Surcharge National Retirement Fund 13-6130178/ 001 Critical Critical Implemented $ 3,574 $ 4,130 $ 4,147 No 3/6/2020 - 10/1/2023 UNITE HERE Retirement Fund 82-0994119/ 001 Critical Critical Implemented 3,392 4,531 3,686 No 12/15/2019 - 6/30/2023 Local 1102 Retirement Trust 13-1847329/ 001 Seriously Endangered Endangered Implemented 66 110 1,206 No 10/31/2020 Central States SE and SW Areas Pension Plan 36-6044243/ 001 Critical and Declining Critical and Declining Implemented 4,422 4,282 4,128 No 1/31/2007 - 3/31/2023 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 23-2627428/ 001 Critical Critical Implemented 325 361 319 No 1/31/2023 SEIU National Industry Pension Fund (1) 52-6148540/ 001 Critical Critical Implemented 685 623 501 No 4/14/2022 - 12/31/2023 LIUNA National Industrial Pension Fund 52-6074345/ 001 Green Critical Implemented 674 678 620 No 12/31/2020 Other funds 17,073 18,846 18,016 Total contributions $ 30,211 $ 33,561 $ 32,623 (1) Over 75% of the Company's participants in this fund are covered by a single CBA that expires on 12/31/2023. 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 National Retirement Fund 12/31/2018 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income taxes by source of income | The components of (loss) income before income taxes by source of (loss) income are as follows (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 United States $ (291,436) $ 418,902 $ 326,277 Non-U.S. (356,283) 137,270 145,599 $ (647,719) $ 556,172 $ 471,876 |
Provision (benefit) for income taxes | The (benefit) provision for income taxes consists of (in thousands): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Current: Federal $ (69,399) $ 8,781 $ (48,249) State and local (4,616) 19,966 11,356 Non-U.S. 21,779 38,456 44,618 (52,236) 67,203 7,725 Deferred: Federal (79,054) 35,251 (113,475) State and local (19,627) 7,683 7,408 Non-U.S. (35,367) (2,431) 1,778 (134,048) 40,503 (104,289) $ (186,284) $ 107,706 $ (96,564) |
Effective Income Tax Rate Reconciliation | The (benefit) provision for income taxes varies from the amount determined by applying the United States Federal statutory rate to pretax (loss) income as a result of the following (all percentages are as a percentage of (loss) income before income taxes): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 United States statutory income tax rate 21.0 % 21.0 % 24.5 % Increase (decrease) in taxes, resulting from: State income taxes, net of Federal tax benefit 3.0 4.2 3.2 Foreign taxes (1) (3.9) 2.2 3.3 Foreign goodwill impairment (5.0) — — Permanent book/tax differences (0.7) 0.6 (1.2) Uncertain tax positions 0.1 — (0.3) U.S. Tax Reform - Remeasurement of deferred taxes — — (49.3) U.S. Tax Reform - Foreign tax credit valuation allowance — (2.3) 2.8 Stock compensation 3.6 (0.2) — CARES Act - Carryback rate differential 9.8 — — Sale of HCT — (4.4) — Tax credits & other 0.9 (1.7) (3.5) Effective income tax rate 28.8 % 19.4 % (20.5) % (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"), as well as valuation allowances in foreign countries in fiscal 2020 (3.4%). |
Components of deferred taxes | As of October 2, 2020 and September 27, 2019, the components of deferred taxes are as follows (in thousands): October 2, 2020 September 27, 2019 Deferred tax liabilities: Property and equipment $ 183,789 $ 137,293 Investments 13,300 11,902 Other intangible assets, including goodwill 500,447 462,637 Cost to fulfill - Rental merchandise in-service 52,334 83,483 Operating Lease Right-of-use Assets 89,464 — Other 45,589 37,309 Gross deferred tax liability 884,923 732,624 Deferred tax assets: Derivatives 30,625 11,949 Insurance 23,784 34,112 Employee compensation and benefits 128,771 113,269 Accruals and allowances 31,218 31,844 Operating lease liabilities 102,259 — NOL/credit carryforwards and other 261,763 56,508 Gross deferred tax asset, before valuation allowances 578,420 247,682 Valuation allowances (38,977) (17,532) Net deferred tax liability $ 345,480 $ 502,474 |
Schedule of Valuation and Qualifying Accounts Disclosure | Rollforward of the valuation allowance is as follows: October 2, 2020 September 27, 2019 Balance, beginning of year $ (17,532) $ (29,023) Additions (1) (21,445) (2,330) Subtractions (2) — 13,821 Balance, end of year $ (38,977) $ (17,532) (1) The additions in both fiscal 2020 and fiscal 2019 were mainly driven by losses in certain foreign subsidiaries. (2) Valuation allowances against FTC carryforwards were released during fiscal 2019 as a result of Treasury Regulations. ARAMARK AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE FISCAL YEARS ENDED OCTOBER 2, 2020, SEPTEMBER 27, 2019 AND SEPTEMBER 28, 2018 Additions Reductions Balance, Beginning of Period Charged to Income Deductions from Reserves (1) Balance, End of Period Description Fiscal Year 2020 Reserve for doubtful accounts, advances & current notes receivable $ 49,566 $ 64,655 $ 39,296 $ 74,925 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 (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): October 2, 2020 September 27, 2019 Balance, beginning of year $ 36,272 $ 29,089 Additions based on tax positions taken in the current year 1,257 3,713 Additions for tax positions taken in prior years — 6,531 Reductions for remeasurements, settlements and payments (392) (1,484) Reductions due to statute expiration (2,559) (1,577) Balance, end of year $ 34,578 $ 36,272 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Stockholders' Equity Note [Abstract] | |
Dividends Paid | The following table presents the Company's cash dividend payments to its stockholders (in millions): October 2, 2020 September 27, 2019 September 28, 2018 Dividend payments $ 110.9 $ 108.4 $ 103.1 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
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 (reduction) and related information for Time-Based Options ("TBOs"), Retention Time-Based Options ("TBO-Rs"), Performance-Based Options ("PBOs"), Time-Based Restricted Stock Units ("RSUs"), Performance Stock Units ("PSUs") and Deferred Stock Units classified as "Selling and general corporate expenses" on the Consolidated Statements of (Loss) Income (in millions). Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 TBOs $ 10.8 $ 14.7 $ 18.5 TBO-Rs 0.3 — — RSUs 35.1 28.9 24.1 PSUs (1) (17.8) 9.9 43.7 Deferred Stock Units 1.9 1.8 2.0 $ 30.3 $ 55.3 $ 88.3 Taxes related to share-based compensation $ 7.2 $ 13.7 $ 24.1 Cash Received from Option Exercises 90.0 39.1 21.5 Tax Benefit on Share Deliveries (2) 46.2 4.8 7.4 (1) Share-based compensation expense was reduced during fiscal 2020 based on lower than estimated target attainment on plan metrics on each of the fiscal 2018, fiscal 2019 and fiscal 2020 PSU grants, resulting in the reversal of previously recognized share-based compensation expense of $29.8 million. 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 "Prepayments and Other Current Assets" on the Consolidated Statement of Cash Flows. |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The below table summarizes the unrecognized compensation expense as of October 2, 2020 related to non-vested awards and the weighted-average period they are expected to be recognized: Unrecognized Compensation Expense Weighted-Average Period TBOs $ 38.2 2.72 TBO-Rs 22.2 4.49 RSUs 114.9 2.61 PSUs — 1.90 Total $ 175.3 |
Schedule of Stock Option Valuation Assumptions | The table below presents the weighted average assumptions and related valuations for TBOs. Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Expected volatility 30% 20% 20% Expected dividend yield 1.01% - 2.09% 1.17% - 1.44% 1.03% - 1.11% Expected life (in years) 6.22 6.25 6.25 Risk-free interest rate 0.40% - 1.74% 1.62% - 3.02% 2.25% - 2.94% Weighted-average grant-date fair value $9.07 $8.23 $8.75 Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 Total intrinsic value exercised (in millions) $ 114.6 $ 26.8 $ 16.6 Total fair value that vested (in millions) 9.9 16.3 17.3 The table below presents the weighted average assumptions and related valuations for TBO-Rs. Fiscal Year Ended October 2, 2020 Expected volatility 37.82% Expected dividend yield 1.55% Expected life (in years) 7.00 Risk-free interest rate 0.50% Weighted-average grant-date fair value $3.93 |
Schedule of Options Activity | A summary of TBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Term Outstanding at September 27, 2019 12,356 $ 28.22 Granted 4,327 $ 33.61 Exercised (5,390) $ 21.72 Forfeited and expired (2,574) $ 36.55 Outstanding at October 2, 2020 8,719 $ 32.45 $ 9,803 7.3 Exercisable at October 2, 2020 3,213 $ 29.49 $ 9,219 4.3 Expected to vest at October 2, 2020 4,839 $ 34.33 $ 481 8.9 A summary of TBO-R activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Term Outstanding at September 27, 2019 — $ — Granted 5,732 $ 66.15 Exercised — $ — Forfeited and expired — $ — Outstanding at October 2, 2020 5,732 $ 66.15 $ — 9.9 Expected to vest at October 2, 2020 4,275 $ 66.15 $ — 9.9 A summary of PBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Term Outstanding at September 27, 2019 1,511 $ 12.77 Granted — $ — Exercised (1,205) $ 12.97 Forfeited and expired — $ — Outstanding at October 2, 2020 306 $ 11.99 $ 4,765 0.9 Exercisable at October 2, 2020 306 $ 11.99 $ 4,765 0.9 |
Schedule of Restricted Stock Units Activity | 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 27, 2019 2,649 $ 36.89 Granted 3,355 $ 32.80 Vested (925) $ 35.79 Forfeited (453) $ 38.67 Outstanding at October 2, 2020 4,626 $ 34.08 Performance Stock Units Units Weighted Average Grant Date Fair Value Outstanding at September 27, 2019 1,621 $ 36.20 Granted (1) 642 $ 42.99 Vested (590) $ 34.13 Forfeited (358) $ 36.65 Outstanding at October 2, 2020 1,315 $ 37.61 (1) Includes approximately 0.3 million shares resulting from the payout of the fiscal 2017 PSU grants due to exceeding the adjusted earnings per share target. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to the Company's stockholders (in thousands, except per share data): Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 (Loss) Earnings: Net (loss) income attributable to Aramark stockholders $ (461,529) $ 448,549 $ 567,885 Shares: Basic weighted-average shares outstanding 251,828 246,854 245,771 Effect of dilutive securities (1) — 5,156 7,581 Diluted weighted-average shares outstanding 251,828 252,010 253,352 Basic (Loss) Earnings Per Share: Net (loss) income attributable to Aramark stockholders $ (1.83) $ 1.82 $ 2.31 Diluted (Loss) Earnings Per Share: Net (loss) income attributable to Aramark stockholders $ (1.83) $ 1.78 $ 2.24 (1) Incremental shares of 2.3 million have been excluded from the computation of diluted weighted-average shares outstanding for the fiscal year ended October 2, 2020 because the effect would have been antidilutive due to the net loss attributable to Aramark stockholders during the period. |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
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 non-cancelable operating leases 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 |
Oct. 02, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | The following tables summarize the Company's unaudited quarterly results for fiscal 2020 and fiscal 2019 (in thousands, except per share amounts): Quarter Ended December 27, 2019 March 27, 2020 June 26, 2020 October 2, 2020 Revenue (1) $ 4,253,597 $ 3,731,559 $ 2,152,253 $ 2,692,150 Cost of services provided (1) 3,768,113 3,407,589 2,265,614 2,552,351 Net income (loss) (1) 145,883 (202,021) (256,308) (148,989) Net income (loss) attributable to Aramark stockholders (1) 145,761 (202,260) (256,440) (148,590) Earnings (Loss) per share: Basic $ 0.59 $ (0.80) $ (1.01) $ (0.59) Diluted 0.57 (0.80) (1.01) (0.59) Dividends declared per common share 0.110 0.110 0.110 0.110 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 (2) 250,676 29,310 83,064 85,414 Net income attributable to Aramark stockholders (2) 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 (1) Fiscal 2020 results were negatively impacted by COVID-19. (2) Fiscal 2019 net income was impacted by the sale of HCT in the first quarter of fiscal 2019 (see Note 2). |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Oct. 02, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Segment | Financial information by segment follows (in millions): Revenue (1)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 FSS United States $ 7,366.7 $ 9,898.6 $ 10,137.8 FSS International 2,945.8 3,742.9 3,655.8 Uniform 2,517.1 2,585.8 1,996.0 $ 12,829.6 $ 16,227.3 $ 15,789.6 |
Schedule of Operating Income by Segment | Operating Income (Loss) (1)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 FSS United States $ 5.3 $ 716.8 $ 682.7 FSS International (344.2) 142.7 142.2 Uniform 171.5 191.3 181.4 (167.4) 1,050.8 1,006.3 Corporate (97.5) (159.6) (187.9) Operating (Loss) Income (264.9) 891.2 818.4 Interest and Other Financing Costs, net (382.8) (335.0) (346.6) (Loss) Income Before Income Taxes $ (647.7) $ 556.2 $ 471.8 |
Schedule of Depreciation and Amortization by Segment | Depreciation and Amortization (2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 FSS United States $ 379.2 $ 381.6 $ 405.0 FSS International 76.2 69.4 64.8 Uniform 137.2 138.7 123.4 Corporate 2.6 2.9 3.0 $ 595.2 $ 592.6 $ 596.2 |
Schedule of Capital Expenditures and Client Contract Investments and Other by Segment | Capital Expenditures and Other (1)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018* FSS United States $ 310.0 $ 375.9 $ 494.3 FSS International 48.9 69.4 84.1 Uniform 58.8 61.0 332.5 Corporate 2.1 0.1 1.2 $ 419.8 $ 506.4 $ 912.1 * Includes amounts acquired in business combinations. |
Schedule of Assets by Segment | Identifiable Assets (1)(2) October 2, 2020** September 27, 2019 FSS United States $ 8,171.6 $ 8,368.1 FSS International 1,963.2 2,039.2 Uniform 3,159.9 3,118.7 Corporate*** 2,418.0 210.3 $ 15,712.7 $ 13,736.3 ** Includes capitalization of Operating Lease Right-of-use Assets. *** Fiscal 2020 includes cash on hand from borrowings. |
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)(2) Fiscal Year Ended October 2, 2020 September 27, 2019 September 28, 2018 United States $ 9,560.9 $ 12,070.0 $ 11,795.6 Foreign 3,268.7 4,157.3 3,994.0 $ 12,829.6 $ 16,227.3 $ 15,789.6 |
Schedule of Net Property and Equipment by Geographic Areas | Property and Equipment, net (1) October 2, 2020 September 27, 2019 United States $ 1,759.2 $ 1,854.7 Foreign 291.7 327.1 $ 2,050.9 $ 2,181.8 (1) Revenue, operating income (loss), capital expenditures and other and identifiable assets for all segments in fiscal 2020 were negatively impacted by COVID-19. (2) The adoption of the new ASU related to revenue recognition in fiscal 2019 impacted each of the financial information categories presented. 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). |
Nature of Business, Basis of _4
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Oct. 02, 2020USD ($)country | Oct. 02, 2020USD ($)segmentcountry | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | Sep. 28, 2019USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Number of countries in which entity operates | country | 18 | 18 | |||
Operating Lease Right-of-use Assets (see Note 8) | $ 551,394 | $ 551,394 | $ 0 | ||
Number of reportable segments | segment | 3 | ||||
Foreign currency transaction loss | $ 2,500 | 4,900 | $ 3,800 | ||
Depreciation | 418,300 | 421,400 | 270,000 | ||
Goodwill impairment and asset write-downs | 283,743 | 0 | 0 | ||
Disposals of property and equipment | 54,074 | 17,871 | 10,491 | ||
Capital lease transactions | 29,300 | 29,300 | 41,600 | 34,000 | |
Present value of lease liabilities | 413,477 | 413,477 | |||
Inventory valuation reserves | 36,700 | 36,700 | 23,600 | ||
Cash and cash equivalents | 2,509,188 | 2,509,188 | 246,643 | ||
Deferred income taxes and other liabilities, noncurrent | 1,099,075 | 1,099,075 | 1,088,822 | ||
Present value of future rental obligations | 142,588 | 142,588 | 148,754 | ||
Payments related to tax withholding for share-based compensation | 92,300 | $ 34,300 | $ 19,000 | ||
Remaining lease liability related to abandoned leases | 11,300 | 11,300 | |||
CARES Act | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Deferred income taxes and other liabilities, noncurrent | 80,800 | 80,800 | |||
Captive | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents | 92,100 | 92,100 | |||
Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
CARES Act. COVID-19 labor related credits | 18,700 | ||||
Food and Support Services - United States and International Segments | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Goodwill impairment and asset write-downs | 30,600 | ||||
Food and Support Services - United States | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Loss on sale of properties by abandonment | 28,500 | ||||
Food and Support Services International and Uniform and Career Apparel | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
CARES Act. COVID-19 labor related credits | 128,100 | ||||
Accounting Standards Update 2016-02 | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Operating Lease Right-of-use Assets (see Note 8) | $ 558,500 | ||||
Present value of lease liabilities | 416,100 | ||||
Accounting Standards Update 2016-02 | Prepaid rent | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Operating Lease Right-of-use Assets (see Note 8) | $ 166,900 | ||||
Property and Equipment | Food and Support Services - United States and International Segments | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Goodwill impairment and asset write-downs | 17,800 | ||||
Right of Use Assets | Food and Support Services - United States and International Segments | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Goodwill impairment and asset write-downs | 11,600 | ||||
Right of Use Assets | Food and Support Services - United States | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Loss on sale of properties by abandonment | 10,300 | ||||
Leasehold Improvements | Food and Support Services - United States | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Loss on sale of properties by abandonment | $ 17,400 | ||||
Building and Building Improvements | Minimum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful lives | 10 years | ||||
Building and Building Improvements | Maximum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful lives | 40 years | ||||
Service Equipment and Fixtures | Minimum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful lives | 3 years | ||||
Service Equipment and Fixtures | Maximum | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful lives | 20 years | ||||
Prepaid rent | Food and Support Services - United States and International Segments | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Goodwill impairment and asset write-downs | $ 1,200 | ||||
Prepaid rent | Food and Support Services - United States | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Loss on sale of properties by abandonment | $ 800 | ||||
TENNESSEE | Tornado | Uniform segment | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Unusual or infrequent item, or both, insurance proceeds | 25,000 | ||||
Proceeds from insurance settlement, investing activities | 21,500 | ||||
Proceeds from insurance settlement, operating activities | 3,500 | ||||
TENNESSEE | Tornado | Uniform segment | Cost of services provided | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Insured event, gain (loss) | $ 16,300 |
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 | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income (loss) | $ (461,435) | $ 448,466 | $ 568,440 |
Pension plan adjustments, Pre-Tax Amount | (33,831) | (29,137) | 29,650 |
Pension plan adjustments, tax expense (benefit) | 8,162 | 6,543 | (9,003) |
Pension plan adjustments, After-Tax Amount | (25,669) | (22,594) | 20,647 |
Foreign currency translation adjustments, Pre-Tax Amount | (6,348) | (34,099) | (31,003) |
Foreign currency translation adjustments, tax benefit | (1,470) | (209) | (250) |
Foreign currency translation adjustments, After-Tax Amount | (7,818) | (34,308) | (31,253) |
Gain (Loss) recognized in other comprehensive income | (110,817) | (84,392) | 55,445 |
Unrealized losses arising during the period, Tax Effect | 28,812 | 21,942 | (16,134) |
Unrealized losses arising during the period, After-Tax Amount | (82,005) | (62,450) | 39,311 |
Reclassification adjustments | 34,409 | (6,484) | 5,185 |
Reclassification adjustments, Tax Effect | (8,946) | 1,686 | (1,510) |
Reclassification adjustments, After-Tax Amount | 25,463 | (4,798) | 3,675 |
Share of equity investee's comprehensive loss, Pre-Tax Amount | (264) | (1,592) | 157 |
Share of equity investee's comprehensive loss, tax (expense) benefit | 0 | 0 | 0 |
Share of equity investee's comprehensive (loss) income | (264) | (1,592) | 157 |
Other comprehensive income (loss), Pre-Tax Amount | (116,851) | (155,704) | 59,434 |
Other comprehensive income (loss), tax (expense) benefit | 26,558 | 29,962 | (26,897) |
Other comprehensive (loss) income, net of tax | (90,293) | (125,742) | 32,537 |
Comprehensive income | (551,728) | 322,724 | 600,977 |
Less: Net income (loss) attributable to noncontrolling interest | 94 | (83) | 555 |
Comprehensive (loss) income attributable to Aramark stockholders | $ (551,822) | $ 322,807 | $ 600,422 |
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 | Oct. 02, 2020 | Sep. 27, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Pension plan adjustments | $ (72,891) | $ (47,222) |
Foreign currency translation adjustments | (135,937) | (128,119) |
Cash flow hedges | (87,598) | (31,056) |
Share of equity investee's accumulated other comprehensive loss | (10,832) | (10,568) |
Accumulated other comprehensive income (loss), net of tax | $ (307,258) | $ (216,965) |
Nature of Business, Basis of _7
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Inventories (Details) | Oct. 02, 2020 | Sep. 27, 2019 |
Components of Inventories [Line Items] | ||
Percentage of inventory | 100.00% | 100.00% |
Food | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 42.70% | 54.30% |
Uniform | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 52.20% | 40.50% |
Parts, supplies and novelties | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 5.10% | 5.20% |
Nature of Business, Basis of _8
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid Insurance | $ 13,396 | $ 13,512 |
Prepaid Taxes and Licenses | 11,130 | 12,399 |
Current Income Tax Asset | 123,608 | 35,107 |
Other Prepaid Expenses | 150,810 | 132,443 |
Prepayments and other current assets | $ 298,944 | $ 193,461 |
Nature of Business, Basis of _9
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-term prepaid rent | $ 0 | $ 166,931 |
Costs to fulfill - Client | 113,940 | 109,401 |
Cost to fulfill - Rental Merchandise in-service | 311,238 | 356,853 |
Long-term receivables | 28,460 | 27,574 |
Miscellaneous investments | 262,609 | 264,452 |
Computer software costs, net | 177,136 | 170,510 |
Employee sales commissions | 122,011 | 111,001 |
Other | 142,712 | 137,084 |
Other Assets | $ 1,158,106 | $ 1,343,806 |
Nature of Business, Basis of_10
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Other Assets - Footnotes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Schedule of Investments [Line Items] | |||
Amortization of capital investments related to client contracts | $ 183,600 | ||
Equity Securities without readily determinable fair value, amount | $ 42,500 | $ 42,600 | |
Goodwill impairment and asset write-downs | 283,743 | 0 | $ 0 |
AIM Services Co., Ltd | |||
Schedule of Investments [Line Items] | |||
Equity Securities without readily determinable fair value, amount | $ 182,900 | 180,500 | |
Minimum | Computer Software | |||
Schedule of Investments [Line Items] | |||
Intangible asset, useful life | 3 years | ||
Maximum | Computer Software | |||
Schedule of Investments [Line Items] | |||
Intangible asset, useful life | 10 years | ||
Information Technology Assets | Food and Support Services - United States | |||
Schedule of Investments [Line Items] | |||
Goodwill impairment and asset write-downs | $ 26,100 | ||
Cost of services provided | |||
Schedule of Investments [Line Items] | |||
Equity Securities without readily determinable fair value, amount | $ 7,000 |
Nature of Business, Basis of_11
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Other Accrued Expenses and Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred income tax payable | $ 291,680 | $ 345,840 |
Accrued client expenses | 44,419 | 105,636 |
Accrued taxes | 53,146 | 61,816 |
Accrued insurance(3) and interest | 174,048 | 192,695 |
Other | 376,909 | 420,249 |
Accrued expenses and other current liabilities | 940,202 | 1,126,236 |
Consideration received from customers prior to service being performed | 263,800 | 319,000 |
Consideration received from vendors prior to goods being consumed | $ 27,900 | $ 26,800 |
Nature of Business, Basis of_12
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Deferred Income Taxes and Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred income taxes (see Note 10) | $ 398,777 | $ 519,904 |
Deferred compensation | 210,884 | 212,090 |
Pension-related liabilities | 18,044 | 21,367 |
Interest rate swap agreements | 116,882 | 43,112 |
Insurance reserves | 143,923 | 125,293 |
Other noncurrent liabilities | 210,565 | 167,056 |
Deferred Income Taxes and Other Noncurrent Liabilities | $ 1,099,075 | $ 1,088,822 |
Nature of Business, Basis of_13
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 | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Interest paid | $ 353.6 | $ 306.2 | $ 307.1 |
Income taxes (refunded) paid | $ 40.2 | $ 139.3 | $ (1.1) |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) $ in Thousands | Nov. 09, 2018USD ($) | Jan. 19, 2018USD ($) | Dec. 11, 2017USD ($) | Oct. 02, 2020USD ($) | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($)Trade_Names |
Business Acquisition [Line Items] | ||||||
Number of trade names acquired | Trade_Names | 2 | |||||
Proceeds from divestitures | $ 0 | $ 293,711 | $ 0 | |||
Gain on sale of Healthcare Technologies | 0 | 156,309 | 0 | |||
Goodwill | 5,343,828 | 5,518,800 | ||||
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 | 28,900 | 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 | 22,200 | 44,900 | 30,600 | |||
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 | $ 3,953,332 | $ 3,949,218 | ||||
Healthcare Technologies | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from divestitures | $ 293,700 | |||||
Tax effected gain on divestiture | 139,200 | |||||
Healthcare Technologies | Gain on Sale of Healthcare Technologies | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Business Acquisition [Line Items] | ||||||
Gain (Loss) on Disposition of Business, Before Tax | $ 156,300 |
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 |
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 $ in Thousands | 12 Months Ended |
Sep. 28, 2018USD ($) | |
Business Acquisition [Line Items] | |
Total revenue | $ 16,014,463 |
Net income | $ 624,334 |
Severance (Details)
Severance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Accrued Payroll and Related Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Severance and Related Costs Accrual Beginning Balance | $ 11.9 | ||
Charges | 145.8 | ||
Payments and Other | (36.7) | ||
Severance and Related Costs Accrual Ending Balance | 121 | $ 11.9 | |
COVID-Related Severance | Cost of Services Provided and Selling and General Corporate Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 145.8 | ||
COVID-Related Severance | Cost of Services Provided and Selling and General Corporate Expenses | Corporate, Non-Segment | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 1.8 | ||
COVID-Related Severance | Cost of Services Provided and Selling and General Corporate Expenses | Food and Support Services - United States | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 51.8 | ||
COVID-Related Severance | Cost of Services Provided and Selling and General Corporate Expenses | Food and Support Services - International | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 87.3 | ||
COVID-Related Severance | Cost of Services Provided and Selling and General Corporate Expenses | Uniform | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 4.9 | ||
Employee Severance and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 18.7 | $ 36.6 | |
Employee Severance and Other Costs | Accrued Payroll and Related Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Severance and Related Costs Accrual Beginning Balance | 11.9 | ||
Charges | 0 | ||
Payments and Other | (9.4) | ||
Severance and Related Costs Accrual Ending Balance | 2.5 | 11.9 | |
Employee Severance and Other Costs | COVID-Related Severance | Accrued Payroll and Related Expenses | |||
Restructuring Reserve [Roll Forward] | |||
Severance and Related Costs Accrual Beginning Balance | 0 | ||
Charges | 145.8 | ||
Payments and Other | (27.3) | ||
Severance and Related Costs Accrual Ending Balance | $ 118.5 | $ 0 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 27, 2020numberOfReportingUnits | Oct. 02, 2020USD ($) | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill decrease from divestiture | $ 7,645 | |||
Amortization of intangible assets | 117,600 | $ 117,000 | $ 112,100 | |
Goodwill | 5,343,828 | $ 5,518,800 | ||
Food and Support Services - International | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Percentage of fair value in excess of carrying amount | 34.00% | 22.00% | ||
Goodwill decrease from divestiture | 220 | |||
Goodwill | 426,118 | $ 608,468 | ||
Customer-Related Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets acquired | $ 9,700 | 28,500 | ||
Weighted-average estimated useful life (in years) | 14 years | |||
Customer-Related Intangible Assets | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset, useful life | 3 years | |||
Customer-Related Intangible 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 | |||
Reporting Unit Within FSS International | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Number of reporting units, reporting impairment | numberOfReportingUnits | 1 | |||
Reporting Unit Within FSS International | Food and Support Services - International | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 90,100 |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets - Schedule of Goodwill Assets by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Goodwill [Roll Forward] | |||
43735 | $ 5,518,800 | ||
Acquisitions and Divestitures | 7,645 | ||
Translation | 15,983 | ||
44106 | 5,343,828 | $ 5,518,800 | |
Goodwill, Impairment Loss | (198,600) | 0 | $ 0 |
FSS United States | |||
Goodwill [Roll Forward] | |||
43735 | 3,949,218 | ||
Acquisitions and Divestitures | 4,118 | ||
Translation | (4) | ||
44106 | 3,953,332 | 3,949,218 | |
Goodwill, Impairment Loss | 0 | ||
FSS International | |||
Goodwill [Roll Forward] | |||
43735 | 608,468 | ||
Acquisitions and Divestitures | 220 | ||
Translation | 16,030 | ||
44106 | 426,118 | 608,468 | |
Goodwill, Impairment Loss | (198,600) | ||
Uniform | |||
Goodwill [Roll Forward] | |||
43735 | 961,114 | ||
Acquisitions and Divestitures | 3,307 | ||
Translation | (43) | ||
44106 | 964,378 | $ 961,114 | |
Goodwill, Impairment Loss | $ 0 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets - Schedule of other intangible assets (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Other Intangible Assets | ||
Gross Amount | $ 3,248,444 | $ 3,231,451 |
Accumulated Amortization | (1,315,807) | (1,197,885) |
Net Amount | 1,932,637 | 2,033,566 |
Customer relationship assets | ||
Other Intangible Assets | ||
Gross Amount | 2,195,700 | 2,183,492 |
Accumulated Amortization | (1,308,002) | (1,193,525) |
Net Amount | 887,698 | 989,967 |
Trade names | ||
Other Intangible Assets | ||
Gross Amount | 1,052,744 | 1,047,959 |
Accumulated Amortization | (7,805) | (4,360) |
Net Amount | $ 1,044,939 | $ 1,043,599 |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets - Schedule of expected amortization expense (Details) $ in Thousands | Oct. 02, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 105,917 |
2021 | 85,813 |
2022 | 78,854 |
2023 | 78,453 |
2024 | $ 78,580 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Borrowings (Details) | Oct. 30, 2020USD ($) | Oct. 02, 2020USD ($) | Sep. 27, 2019USD ($) | Jan. 18, 2018 | Mar. 27, 2017EUR (€) | Mar. 22, 2017USD ($) | May 31, 2016USD ($) |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | ||||||
Other Long-term Debt | $ 22,155,000 | 7,589,000 | |||||
Debt and Lease Obligation | 9,278,423,000 | 6,682,167,000 | |||||
Less—current portion | (99,915,000) | (69,928,000) | |||||
Long-Term Borrowings | 9,178,508,000 | 6,612,239,000 | |||||
Finance Lease, Liability | 142,588,000 | 148,754,000 | |||||
Cash and cash equivalents | 2,509,188,000 | 246,643,000 | |||||
Foreign | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 937,400,000 | ||||||
Receivables Facility, Due June 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 315,600,000 | 0 | |||||
Secured Debt | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 849,895,000 | 51,410,000 | |||||
Secured Debt | Revolving Credit Facility | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 680,000,000 | ||||||
Secured Debt | Term Loan Facility Due October 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 485,346,000 | 507,887,000 | |||||
Secured Debt | Term Loan Facility Due March 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 830,133,000 | 829,344,000 | |||||
Secured Debt | Term Loan Facility, US Term Loan B, Due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 888,540,000 | 0 | |||||
Secured Debt | Term Loan Facility Due March 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 1,659,194,000 | 1,658,026,000 | |||||
Senior Notes | 5.125% Senior Notes, Due January 15, 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | 902,351,000 | |||||
Stated interest rate | 5.125% | ||||||
Repayments of debt | $ 900,000,000 | ||||||
Senior Notes | 5.000% Senior Notes, Due April 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 593,381,000 | 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 | $ 377,960,000 | 352,363,000 | € 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 | $ 495,426,000 | 494,731,000 | $ 500,000,000 | ||||
Stated interest rate | 4.75% | ||||||
Senior Notes | 5.000% Senior Notes, Due February 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,138,864,000 | 1,137,625,000 | |||||
Stated interest rate | 5.00% | 5.00% | |||||
Senior Notes | 6.375% Senior Notes, Due May 01, 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,479,341,000 | $ 0 | |||||
Stated interest rate | 6.375% | ||||||
Line of Credit | Revolving Credit Facility | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity | $ 80,100,000 | ||||||
Line of Credit | Revolving Credit Facility | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity | $ 753,900,000 |
Borrowings - Senior Secured Cre
Borrowings - Senior Secured Credit Agreement Narrative (Details) € in Millions, ¥ in Millions, $ in Millions | 12 Months Ended | ||||||
Oct. 02, 2020USD ($) | Oct. 02, 2020JPY (¥) | Oct. 02, 2020CAD ($) | Oct. 02, 2020EUR (€) | Sep. 27, 2019USD ($) | Oct. 01, 2018 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | ||||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated secured debt ratio | 5.125 | 5.125 | 5.125 | 5.125 | |||
Term Loan Facility Due March 2024 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 830,133,000 | 829,344,000 | |||||
Term Loan Facility Due March 2024 | Secured Debt | US Denominated Term Loan, Aramark Services, Inc. Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 830,100,000 | ||||||
Revolving Credit Facility | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 849,895,000 | 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 | ||||||
Revolving Credit Facility | Secured Debt | Senior Secured Revolving Credit Facility, Sublimit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 150,000,000 | ||||||
Revolving Credit Facility | Line of Credit | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity | 80,100,000 | ||||||
Revolving Credit Facility | Letter of Credit | Senior Secured Revolving Credit Facility, Sublimit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 250,000,000 | ||||||
Secured Debt | 2017 Amendment Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 1,400,000,000 | ||||||
Term Loan Facility Due March 2025 | Secured Debt | US Denominated Term Loan, Aramark Services, Inc. Due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 888,500,000 | ||||||
Term Loan Facility Due October 2023 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 485,346,000 | $ 507,887,000 | |||||
Term Loan Facility Due October 2023 | Secured Debt | YEN Denominated Term Loan, Aramark Services, Inc. Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 92,200,000 | ¥ 9,708.2 | |||||
Term Loan Facility Due October 2023 | Secured Debt | Canadian Denominated Term Loan, Aramark Canada Ltd. Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 256,700,000 | $ 341.7 | |||||
Term Loan Facility Due October 2023 | Secured Debt | Euro Denominated Term Loan, Aramark Investments Liminted, Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 136,400,000 | € 116.5 | |||||
Term Loan Facility Due October 2023 | Secured Debt | Yen denominated term loans | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | ¥ | ¥ 9,708.2 | ||||||
Term Loan Facility Due October 2023 | Secured Debt | Euro Denominated Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | € | € 116.5 | ||||||
Base Rate | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, minimum interest rate | 0.00% | 0.00% | 0.00% | 0.00% | |||
Effective rate | 0.625% | 0.625% | 0.625% | 0.625% | |||
Base Rate | Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, minimum interest rate | 0.00% | 0.00% | 0.00% | 0.00% | |||
London Interbank Offered Rate (LIBOR) | Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, minimum interest rate | 0.00% | 0.00% | 0.00% | 0.00% | |||
Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, minimum interest rate | 0.00% | 0.00% | 0.00% | 0.00% | |||
Effective rate | 1.625% | 1.625% | 1.625% | 1.625% | |||
Minimum | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument fee, effective rate | 0.15% | 0.25% | |||||
Minimum | Base Rate | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.125% | ||||||
Minimum | Base Rate | Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Minimum | London Interbank Offered Rate (LIBOR) | Term Loan Facility, US Term Loan B, Due 2024 and US Term Loan B, Due 2025 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Minimum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.125% | ||||||
Maximum | Secured Debt | Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument fee, effective rate | 0.30% | 0.40% | |||||
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% | ||||||
Maximum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.625% |
Borrowings - Fiscal 2020 Refina
Borrowings - Fiscal 2020 Refinancing Transactions Narrative (Details) | Jan. 15, 2020USD ($) | Oct. 02, 2020USD ($)financial_institution | Sep. 28, 2018USD ($) | Sep. 27, 2019USD ($) | Jan. 18, 2018USD ($) | Dec. 11, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | |||||
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 | 0.625% | |||||
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 | 1.625% | |||||
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% | |||||
Secured Debt | Term Loan Facility, US Term Loan B, Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 900,000,000 | |||||
Original issue discount, percent | 0.125% | |||||
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 | $ 1,138,864,000 | 1,137,625,000 | ||||
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% | |||||
Senior Notes | 5.125% Senior Notes, Due January 15, 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 5.125% | |||||
Redemption price, percentage | 102.563% | |||||
Long-term debt | $ 0 | 902,351,000 | ||||
Repayments of debt | 900,000,000 | |||||
Term Loan Facilities | Term Loan Facility, US Term Loan B, Due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Payments of financing costs | $ 6,600,000 | |||||
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% | |||||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from lines of credit | $ 200,000,000 | |||||
Revolving Credit Facility | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 849,895,000 | $ 51,410,000 | ||||
Revolving Credit Facility | Secured Debt | Senior Secured Revolving Credit Facility, Sublimit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 150,000,000 | |||||
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 | |||||
5.125% Senior Notes, Due January 15, 2024 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Write off of deferred debt issuance cost | 2,200,000 | |||||
Call premium | $ 23,100,000 | |||||
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 | |||||
Interest and Other Financing Costs, Net | 5.125% Senior Notes, Due January 15, 2024 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) on extinguishment of debt | $ 20,900,000 |
Borrowings - Fiscal 2018 Refina
Borrowings - Fiscal 2018 Refinancing Transactions Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Oct. 02, 2020 | Sep. 28, 2018 | Sep. 27, 2019 | Dec. 11, 2017 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | |||
Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument term | 3 years | |||
Canadian denominated term loan | ||||
Debt Instrument [Line Items] | ||||
Debt instrument term | 3 years | |||
Secured Debt | Term Loan Facility, US Term Loan B, Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,785,000 | |||
Secured Debt | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 849,895 | $ 51,410 | ||
Secured Debt | Term Loan Facility, US Term Loan A, Due 2022 | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | $ 633,800 | |||
Secured Debt | Term Loan Facility, US Term Loan A, Due 2022 | Interest and Other Financing Costs, Net | ||||
Debt Instrument [Line Items] | ||||
Write off of deferred debt issuance cost | 5,700 | |||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Proceeds from lines of credit | $ 200,000 |
Borrowings - Incremental Facili
Borrowings - Incremental Facilities, Prepayments and Amortization Narrative (Details) | 12 Months Ended | ||||
Oct. 02, 2020USD ($) | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | Jan. 15, 2020USD ($) | Dec. 11, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | ||||
Term Loan Facilities | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | 500,000,000 | $ 260,400,000 | |||
Term Loan Facility, US Term Loan B, Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Percentage of term loan principal repaid quarterly | 1.01% | ||||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Consolidated secured debt ratio | 5.125 | ||||
Secured Debt | Term Loan Facility, US Term Loan B, Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 900,000,000 | ||||
Secured Debt | 2017 Amendment Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,400,000,000 | ||||
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% | ||||
Term Loan Facility, US Term Loan B, Due 2025 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,785,000,000 | ||||
Term Loan Facility, US Term Loan B, Due 2027 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Prepayment premium, percent | 1.00% | ||||
Long-term debt | $ 888,540,000 | $ 0 | |||
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 | ||||
Maximum | Secured Debt | 2017 Amendment Agreement | |||||
Debt Instrument [Line Items] | |||||
Consolidated secured debt ratio | 3 | ||||
Period One | Canadian denominated term loan | |||||
Debt Instrument [Line Items] | |||||
Percentage of term loan principal repaid quarterly | 2.08% | ||||
Period One | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Percentage of term loan principal repaid quarterly | 1.94% | ||||
Period Two | Canadian denominated term loan | |||||
Debt Instrument [Line Items] | |||||
Percentage of term loan principal repaid quarterly | 2.78% | ||||
Period Two | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Percentage of term loan principal repaid quarterly | 2.78% | ||||
Period Three | Canadian denominated term loan | |||||
Debt Instrument [Line Items] | |||||
Percentage of term loan principal repaid quarterly | 4.17% | ||||
Period Three | Yen Term Loan Due 2023 and Euro Term Loan Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Percentage of term loan principal repaid quarterly | 4.17% |
Borrowings - Guarantees and Cer
Borrowings - Guarantees and Certain Covenants (Details) | Apr. 22, 2020USD ($) | Oct. 02, 2020 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Consolidated secured debt ratio | 5.125 | |
Debt instrument, covenant, interest coverage ratio | 2 | |
Debt instrument, covenant, interest coverage ratio, actual | 2.58 | |
Debt Instrument, Covenant Compliance, Liquidity Minimum | $ 400,000,000 | |
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) | 12 Months Ended | |||||||
Oct. 02, 2020USD ($) | Apr. 27, 2020USD ($) | Sep. 27, 2019USD ($) | Mar. 30, 2018USD ($) | Jan. 18, 2018USD ($) | Mar. 27, 2017EUR (€) | Mar. 22, 2017USD ($) | May 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 0 | |||||||
Secured Debt | Term Loan Facility Due March 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,659,194,000 | 1,658,026,000 | ||||||
5.000% Senior Notes, Due February 2028 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 1,150,000,000 | |||||||
Long-term debt | $ 1,138,864,000 | 1,137,625,000 | ||||||
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 | $ 593,381,000 | 592,087,000 | $ 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 | $ 377,960,000 | 352,363,000 | € 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% | |||||||
5.125% Senior Notes, Due January 15, 2024 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 0 | 902,351,000 | ||||||
Stated interest rate | 5.125% | |||||||
Redemption price, percentage | 102.563% | |||||||
4.75% Senior Notes, Due June 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Optional redemption price, percentage | 101.00% | |||||||
4.75% Senior Notes, Due June 2026 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 495,426,000 | 494,731,000 | $ 500,000,000 | |||||
Stated interest rate | 4.75% | |||||||
6.375% Senior Notes, Due May 01, 2025 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 1,500,000,000 | |||||||
Long-term debt | $ 1,479,341,000 | $ 0 | ||||||
Stated interest rate | 6.375% | |||||||
Optional redemption price, percentage | 101.00% | |||||||
Debt Instrument, Redemption Price, Partial Redemption, Covenant Minimum of Aggregate Principal Remain Outstanding | 50.00% | |||||||
US Denominated Term Loan, Aramark Services, Inc. Due 2025 | Secured Debt | Term Loan Facility Due March 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,659,200,000 | |||||||
Long-term borrowings | 5.000% Senior Notes, Due February 2028 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amortization of debt issuance costs | $ 14,200,000 | |||||||
Long-term borrowings | 6.375% Senior Notes, Due May 01, 2025 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Amortization of debt issuance costs | $ 22,300,000 | |||||||
Period One | 5.000% Senior Notes, Due February 2028 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Period One | 6.375% Senior Notes, Due May 01, 2025 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 100.00% | |||||||
Period Two | 6.375% Senior Notes, Due May 01, 2025 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Redemption price, percentage | 106.375% | |||||||
Debt Instrument, Partial Redemption, Aggregate Principal Amount, Percent | 40.00% | |||||||
Maximum | 5.000% Senior Notes, Due February 2028 | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed | 40.00% |
Borrowings - Receivables Facili
Borrowings - Receivables Facility (Details) | 12 Months Ended | |
Oct. 02, 2020USD ($)financial_institution | Sep. 27, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Number of financial institutions | financial_institution | 3 | |
Long-term debt | $ 0 | |
Receivables Facility, Due June 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 315,600,000 | $ 0 |
Receivables Facility, Due June 2022 | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 400,000,000 | |
Additional seasonal borrowing capacity | $ 100,000,000 |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Maturities (Details) - USD ($) $ in Thousands | Oct. 30, 2020 | Oct. 02, 2020 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | $ 101,222 | |
2022 | 404,464 | |
2023 | 109,917 | |
2024 | 2,018,862 | |
2025 | 4,171,386 | |
Thereafter | 2,549,665 | |
Senior Notes | 5.125% Senior Notes, Due January 15, 2024 | ||
Debt Instrument [Line Items] | ||
Repayments of debt | 900,000 | |
Term Loan Facilities | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt discount | 61,300 | |
Term Loan Facility, US Term Loan B, Due 2027 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Unamortized discount | $ 1,000 | |
Revolving Credit Facility | Secured Debt | Subsequent Event | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 680,000 |
Borrowings - Schedule of Intere
Borrowings - Schedule of Interest and Other Financing Costs Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 389,434 | $ 352,812 | $ 353,048 |
Interest income | (14,990) | (28,985) | (16,964) |
Other financing costs | 8,356 | 11,160 | 10,451 |
Total | $ 382,800 | $ 334,987 | $ 346,535 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) € in Millions, ¥ in Millions, gal in Millions | 12 Months Ended | |||||
Oct. 02, 2020USD ($)sharesgal | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | Oct. 02, 2020JPY (¥)shares | Oct. 02, 2020EUR (€)shares | Jan. 29, 2020shares | |
Derivative [Line Items] | ||||||
Long-term debt | $ 0 | |||||
Pretax gain recorded (not material in fiscal 2018 and 2017) | $ (40,362,000) | 171,000 | $ 2,242,000 | |||
Common stock, shares authorized (in shares) | shares | 600,000,000 | 600,000,000 | 600,000,000 | |||
Second Amended and Restated 2013 Stock Incentive Plan | Common Stock | ||||||
Derivative [Line Items] | ||||||
Common stock, shares authorized (in shares) | shares | 7,500,000 | |||||
Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Pretax gain recorded (not material in fiscal 2018 and 2017) | $ (5,953,000) | (6,313,000) | $ 7,427,000 | |||
Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Gain on cash flow hedge to be reclassified within twelve months | 37,000,000 | |||||
Interest rate swap agreements | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | 2,900,000,000 | |||||
Interest rate swap agreements | Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | 800,000,000 | |||||
Notional amount of matured hedges | 425,000,000 | |||||
Unrealized Gain (Loss) on Derivatives | $ (87,600,000) | (31,100,000) | ||||
Gasoline and diesel fuel agreements | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Notional amount, volume | gal | 11.1 | |||||
Pretax gain recorded (not material in fiscal 2018 and 2017) | $ 1,300,000 | 4,100,000 | ||||
Term Loan Facility Due October 2023 | Secured Debt | ||||||
Derivative [Line Items] | ||||||
Long-term debt | $ 485,346,000 | $ 507,887,000 | ||||
Yen denominated term loans | Term Loan Facility Due October 2023 | Secured Debt | ||||||
Derivative [Line Items] | ||||||
Long-term debt | ¥ | ¥ 9,708.2 | |||||
Euro Denominated Term Loan | Term Loan Facility Due October 2023 | Secured Debt | ||||||
Derivative [Line Items] | ||||||
Long-term debt | € | € 116.5 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Cash Flow Hedging | Interest rate swap agreements | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain (Loss) recognized in other comprehensive income | $ (110,817) | $ (84,392) | $ 55,445 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Derivative Instruments, Balance Sheet Presentation (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Derivative instruments | ||
Fair value of derivative liabilities | $ 120,302 | $ 43,574 |
Designated as Hedging Instrument | ||
Derivative instruments | ||
Fair value of derivative liabilities | 118,376 | 43,112 |
Designated as Hedging Instrument | Interest rate swap agreements | Other noncurrent liabilities | ||
Derivative instruments | ||
Fair value of derivative liabilities | 116,882 | 43,112 |
Designated as Hedging Instrument | Interest rate swap agreements | Accounts Payable | ||
Derivative instruments | ||
Fair value of derivative liabilities | 1,494 | 0 |
Not Designated as Hedging Instrument | Foreign currency forward exchange contracts | Prepayments and other current assets | ||
Derivative instruments | ||
Fair value of derivative assets | 0 | 64 |
Not Designated as Hedging Instrument | Foreign currency forward exchange contracts | Accounts Payable | ||
Derivative instruments | ||
Fair value of derivative liabilities | 121 | 0 |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | Accounts Payable | ||
Derivative instruments | ||
Fair value of derivative liabilities | $ 1,805 | $ 462 |
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 | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Derivative instruments | |||
Reclassification adjustments | $ 34,409 | $ (6,484) | $ 5,185 |
(Gain) loss reclassified recognized in income | 40,362 | (171) | (2,242) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap agreements | Interest expense | |||
Derivative instruments | |||
Reclassification adjustments | (34,409) | 6,484 | (5,185) |
Not Designated as Hedging Instrument | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | 5,953 | 6,313 | (7,427) |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | (1,300) | (4,100) | |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | Cost of Services Provided and Selling and General Corporate Expenses | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | 5,768 | 6,168 | (7,360) |
Not Designated as Hedging Instrument | Foreign exchange forward | Interest expense | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | $ 185 | $ 145 | $ (67) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Thousands | 12 Months Ended | |
Oct. 02, 2020USD ($)performance_obligation | Sep. 27, 2019USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Number of remaining performance obligations | performance_obligation | 1 | |
Incremental and recoverable costs of obtaining contract, amortization period | 8 years 2 months 12 days | |
Leasehold improvements in property, plant and and equipment | $ 2,050,908 | $ 2,181,762 |
Less: Recognition of deferred income | 280,100 | |
Property, Plant and Equipment | Leasehold Improvements | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Leasehold improvements in property, plant and and equipment | $ 776,100 | $ 785,400 |
Uniform | Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Other assets, useful life | 1 year | |
Uniform | Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Other assets, useful life | 4 years |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 02, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,692,150 | $ 2,152,253 | $ 3,731,559 | $ 4,253,597 | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 12,829,559 | $ 16,227,341 | $ 15,789,633 |
Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 9,560,900 | 12,070,000 | 11,795,600 | ||||||||
FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 7,366,700 | 9,898,600 | 10,137,800 | ||||||||
FSS United States | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 7,366,700 | 9,898,600 | |||||||||
FSS United States | Business & Industry | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,097,300 | 1,587,000 | |||||||||
FSS United States | Education | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,416,400 | 3,228,800 | |||||||||
FSS United States | Healthcare | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 824,600 | 933,500 | |||||||||
FSS United States | Sports, Leisure & Corrections | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,535,800 | 2,557,500 | |||||||||
FSS United States | Facilities & Other | Total FSS United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,492,600 | 1,591,800 | |||||||||
FSS International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,945,800 | 3,742,900 | 3,655,800 | ||||||||
FSS International | Total FSS International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,945,800 | 3,742,900 | |||||||||
FSS International | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,473,500 | 2,044,400 | |||||||||
FSS International | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,472,300 | 1,698,500 | |||||||||
Uniform | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,517,100 | $ 2,585,800 | $ 1,996,000 |
Revenue Recognition - Contracte
Revenue Recognition - Contracted Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Cost of services provided | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization | $ 21.8 | $ 20 |
Cost of services provided | Uniform | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization | 325.7 | 318.2 |
Cost of services provided | Operating Lease Right-of-Use Assets | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization | 23.1 | 16 |
Depreciation and amortization | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization | 20.8 | 20.5 |
Depreciation and amortization | Property, Plant and Equipment | Leasehold Improvements | ||
Disaggregation of Revenue [Line Items] | ||
Capitalized contract cost, amortization | $ 160.8 | $ 149 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred income | $ 263.8 | $ 319 |
Revenue refunded | $ 49.2 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | |||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 28, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Accrued expenses and other current liabilities | $ 0 | |||
Present value of lease liabilities | 413,477,000 | |||
Operating Lease Right-of-use Assets (see Note 8) | $ 551,394,000 | $ 0 | ||
Weighted average remaining lease term | 8 years 6 months | |||
Operating leases, rent expense | $ 375,000,000 | |||
Rental expense for all operating leases | $ 860,600,000 | $ 187,500,000 | ||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Present value of lease liabilities | $ 416,100,000 | |||
Operating Lease Right-of-use Assets (see Note 8) | $ 558,500,000 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Primary vehicle lease, term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Primary vehicle lease, term | 30 years | |||
Maximum potential liability from vehicle leases | $ 28,500,000 | |||
Residual value guarantee, value assumptions, terminal fair value of vehicles coming off lease | $ 0 | |||
Vehicles | Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Primary vehicle lease, term | 1 year | |||
Vehicles | Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Primary vehicle lease, term | 12 years |
Leases - Summary of Operating a
Leases - Summary of Operating and Finance Leases on Balance Sheet (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
ASSETS | ||
Finance and Operating Lease, Right-of-Use Asset | $ 685,474 | |
Liabilities, Current [Abstract] | ||
Operating Lease Right-of-use Assets (see Note 8) | 551,394 | $ 0 |
Operating | 71,810 | 0 |
Liabilities, Noncurrent [Abstract] | ||
Operating | 341,667 | $ 0 |
Operating and Finance Lease, Lease Liability | $ 556,065 | |
Weighted Average Remaining Lease Term [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 8 years 9 months 18 days | |
Weighted average remaining lease term | 8 years 6 months | |
Lease, Weighted Average Discount Rate [Abstract] | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.20% | |
Operating Lease Right-of-Use Assets | ||
Liabilities, Current [Abstract] | ||
Operating Lease Right-of-use Assets (see Note 8) | $ 551,394 | |
Lease, Weighted Average Discount Rate [Abstract] | ||
Long-term prepaid rent | 193,600 | |
Property and Equipment | ||
ASSETS | ||
Finance Lease, Right-of-Use Asset | 134,080 | |
Current Operating Lease Liabilities | ||
Liabilities, Current [Abstract] | ||
Operating | 71,810 | |
Current Maturities of Long-term Borrowings | ||
Liabilities, Current [Abstract] | ||
Finance Lease, Liability, Current | 29,983 | |
Noncurrent Operating Lease Liabilities | ||
Liabilities, Noncurrent [Abstract] | ||
Operating | 341,667 | |
Long-term Borrowings | ||
Liabilities, Noncurrent [Abstract] | ||
Finance Lease, Liability, Noncurrent | $ 112,605 |
Leases - Schedule of Net Lease
Leases - Schedule of Net Lease Cost (Details) $ in Thousands | 12 Months Ended |
Oct. 02, 2020USD ($) | |
Operating lease cost: | |
Fixed lease costs | $ 121,434 |
Variable lease costs(2) | 392,700 |
Short-term lease costs | 59,865 |
Finance lease cost: | |
Amortization of right-of-use-assets | 30,542 |
Interest on lease liabilities | 5,319 |
Net lease cost | $ 609,860 |
Leases - Schedule of Cash Paid
Leases - Schedule of Cash Paid for Amounts included in Lease Liabilities (Details) $ in Thousands | 12 Months Ended |
Oct. 02, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases(1) | $ 144,792 |
Operating cash flows from finance leases | 5,341 |
Financing cash flows from finance leases | 34,674 |
Lease assets obtained in exchange for lease obligations: | |
Operating leases | 90,533 |
Finance leases | 29,317 |
Variable lease payment | 414,000 |
Short-term lease payments | $ 59,900 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 85,005 | |
2022 | 68,500 | |
2023 | 55,331 | |
2024 | 45,581 | |
2025 | 37,409 | |
Thereafter | 184,776 | |
Total future minimum lease payments | 476,602 | |
Less: Interest | (63,125) | |
Present value of lease liabilities | 413,477 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2021 | 31,290 | |
2022 | 25,467 | |
2023 | 19,741 | |
2024 | 17,117 | |
2025 | 14,551 | |
Thereafter | 49,163 | |
Total future minimum lease payments | 157,329 | |
Less: Interest | (14,741) | |
Finance Lease, Liability | 142,588 | $ 148,754 |
Operating Lease and Finance Lease Liability, Payment Due [Abstract] | ||
2021 | 116,295 | |
2022 | 93,967 | |
2023 | 75,072 | |
2024 | 62,698 | |
2025 | 51,960 | |
Thereafter | 233,939 | |
Total future minimum lease payments | 633,931 | |
Less: Interest | (77,866) | |
Present value of lease liabilities | $ 556,065 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental and Similar Commitments (Details) $ in Thousands | Sep. 27, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 101,061 |
2021 | 74,908 |
2022 | 56,765 |
2023 | 43,795 |
2024 | 36,215 |
2025-Therafter | 214,818 |
Total minimum rental obligations | $ 527,562 |
Employee Pension and Profit S_3
Employee Pension and Profit Sharing Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 435.1 | $ 398.8 | |
Settlement gains recognized in other comprehensive loss, before tax | 0.2 | 0.1 | |
Actuarial losses recognized in other comprehensive loss, before tax | 33.1 | 32.9 | |
Amortization of actuarial gains (losses) recognized as net periodic pension cost | 2.3 | 1.2 | |
Net actuarial gain (loss) included in accumulated other comprehensive income (loss) to be recognized in next fiscal year | 2.7 | ||
Expected future employer contributions during fiscal year 2017 | $ 3.4 | ||
Equity Funds, Domestic | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 36.00% | ||
Equity Funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 64.00% | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution cost recognized | $ 17.4 | 41.5 | $ 22.5 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution cost recognized | $ 13.7 | $ 11.7 | $ 8.6 |
Minimum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 10.00% | ||
Minimum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 50.00% | ||
Minimum | Real Estate and Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 1000.00% | ||
Maximum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 30.00% | ||
Maximum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 80.00% | ||
Maximum | Real Estate and Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 20.00% |
Employee Pension and Profit S_4
Employee Pension and Profit Sharing Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 2,996 | $ 6,391 | $ 7,121 |
Interest cost | 9,180 | 11,287 | 10,579 |
Expected return on plan assets | (18,883) | (22,970) | (22,864) |
Settlements and curtailments | 0 | 283 | 3,312 |
Amortization of prior service cost | 26 | 104 | 116 |
Recognized net loss | 2,324 | 1,094 | 1,646 |
Net periodic pension income | $ (4,357) | $ (3,811) | $ (90) |
Employee Pension and Profit S_5
Employee Pension and Profit Sharing Plans - Schedule of Defined Benefit Plans Disclosures (Details) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020USD ($)numberOfPlan | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | |
Change in benefit obligation [Roll Forward]: | |||
Benefit obligation, beginning | $ 401,207 | $ 366,426 | |
Foreign currency translation | 6,067 | (13,097) | |
Service cost | 2,996 | 6,391 | $ 7,121 |
Interest cost | 9,180 | 11,287 | 10,579 |
Employee contributions | 853 | 2,249 | |
Actuarial loss | 32,769 | 49,707 | |
Benefits paid | (16,739) | (16,681) | |
Settlements and curtailments | 0 | (5,075) | |
Benefit obligation, ending | 436,333 | 401,207 | 366,426 |
Change in plan assets [Roll Forward]: | |||
Fair value of plan assets, beginning | 425,967 | 409,826 | |
Foreign currency translation | 5,980 | (14,360) | |
Employer contributions | 4,152 | 10,520 | |
Employee contributions | 853 | 2,249 | |
Actual return on plan assets | 18,840 | 39,280 | |
Benefits paid | (16,739) | (16,681) | |
Settlements | 0 | (4,867) | |
Fair value of plan assets, end | 439,053 | 425,967 | $ 409,826 |
Funded Status at end of year | $ 2,720 | $ 24,760 | |
Number of plans closed | numberOfPlan | 2 |
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 | Oct. 02, 2020 | Sep. 27, 2019 |
Retirement Benefits [Abstract] | ||
Noncurrent benefit asset (included in Other Assets) | $ 16,617 | $ 35,459 |
Noncurrent benefit liability (included in Other Noncurrent Liabilities) | (13,897) | (10,699) |
Net actuarial loss (included in Accumulated other comprehensive loss before taxes) | $ 111,035 | $ 77,204 |
Employee Pension and Profit S_7
Employee Pension and Profit Sharing Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Assumptions Used to Calculate Pension Expense [Abstract] | ||
Discount rate | 2.50% | 3.30% |
Rate of compensation increase | 1.90% | 2.10% |
Long-term rate of return on assets | 4.30% | 5.70% |
Assumptions Used to Calculate Funded Status [Abstract] | ||
Discount rate | 2.40% | 2.50% |
Rate of compensation increase | 2.00% | 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 | Oct. 02, 2020 | Sep. 27, 2019 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 153,338 | $ 10,699 |
Accumulated benefit obligation | $ 152,729 | $ 10,506 |
Employee Pension and Profit S_9
Employee Pension and Profit Sharing Plans - Schedule of Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 439,053 | $ 425,967 | $ 409,826 |
Quoted Prices in Active Markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 80,789 | 24,073 | |
Significant Other Observable Inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 347,201 | 391,469 | |
Significant Unobservable Inputs Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,063 | 10,425 | |
Cash and Cash Equivalents and Other | Quoted Prices in Active Markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76,072 | 19,396 | |
Investment Trusts | Quoted Prices in Active Markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,717 | 4,677 | |
Pooled Funds - Equity | Significant Other Observable Inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 74,852 | 72,074 | |
Pooled Funds - Fixed Income | Significant Other Observable Inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 272,349 | 319,395 | |
Real Estate | Significant Unobservable Inputs Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,063 | 10,425 | |
Fair Value Disclosure | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 439,053 | 425,967 | |
Fair Value Disclosure | Cash and Cash Equivalents and Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 76,072 | 19,396 | |
Fair Value Disclosure | Investment Trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,717 | 4,677 | |
Fair Value Disclosure | Pooled Funds - Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 74,852 | 72,074 | |
Fair Value Disclosure | Pooled Funds - Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 272,349 | 319,395 | |
Fair Value Disclosure | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 11,063 | $ 10,425 |
Employee Pension and Profit _10
Employee Pension and Profit Sharing Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | Oct. 02, 2020USD ($) |
Retirement Benefits [Abstract] | |
Fiscal 2021 | $ 224,264 |
Fiscal 2022 | 7,418 |
Fiscal 2023 | 7,650 |
Fiscal 2024 | 7,799 |
Fiscal 2025 | 8,212 |
Fiscal 2026 – 2030 | $ 44,006 |
Employee Pension and Profit _11
Employee Pension and Profit Sharing Plans - Schedule of Multiemployer Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
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 | $ 30,211 | $ 33,561 | $ 32,623 |
Multiemployer Pension Plans | National Retirement Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 3,574 | 4,130 | 4,147 |
Multiemployer Pension Plans | UNITE HERE Retirement Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 3,392 | 4,531 | 3,686 |
Multiemployer Pension Plans | Local 1102 Retirement Trust | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 66 | 110 | 1,206 |
Multiemployer Pension Plans | Central States SE and SW Areas Pension Plan | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 4,422 | 4,282 | 4,128 |
Multiemployer Pension Plans | Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 325 | 361 | 319 |
Multiemployer Pension Plans | SEIU National Industry Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 685 | 623 | 501 |
Multiemployer Pension Plans | LUNA National Industrial Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 674 | 678 | 620 |
Multiemployer Pension Plans | Other funds | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | $ 17,073 | $ 18,846 | $ 18,016 |
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 | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (291,436) | $ 418,902 | $ 326,277 |
Non-U.S. | (356,283) | 137,270 | 145,599 |
(Loss) Income Before Income Taxes | $ (647,719) | $ 556,172 | $ 471,876 |
Income Taxes - Provision (benef
Income Taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Current: | |||
Federal | $ (69,399) | $ 8,781 | $ (48,249) |
State and local | (4,616) | 19,966 | 11,356 |
Non-U.S. | 21,779 | 38,456 | 44,618 |
Current | (52,236) | 67,203 | 7,725 |
Deferred: | |||
Federal | (79,054) | 35,251 | (113,475) |
State and local | (19,627) | 7,683 | 7,408 |
Non-U.S. | (35,367) | (2,431) | 1,778 |
Deferred income taxes | (134,048) | 40,503 | (104,289) |
Income tax provision (benefit) | $ (186,284) | $ 107,706 | $ (96,564) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States statutory income tax rate | 21.00% | 21.00% | 24.50% |
Increase (decrease) in taxes, resulting from: | |||
State income taxes, net of Federal tax benefit | 3.00% | 4.20% | 3.20% |
Foreign taxes | (3.90%) | 2.20% | 3.30% |
Foreign goodwill impairment | (5.00%) | 0.00% | 0.00% |
Permanent book/tax differences | (0.70%) | 0.60% | (1.20%) |
Uncertain tax positions | 0.10% | 0.00% | (0.30%) |
U.S. Tax Reform - Remeasurement of deferred taxes | 0.00% | 0.00% | (49.30%) |
U.S. Tax Reform - Foreign tax credit valuation allowance | 0.00% | (2.30%) | 2.80% |
Stock compensation | 3.60% | (0.20%) | 0.00% |
CARES Act - Carryback rate differential | 9.80% | 0.00% | 0.00% |
Sale of HCT | 0.00% | (4.40%) | 0.00% |
Tax credits & other | 0.90% | (1.70%) | (3.50%) |
Effective income tax rate | 28.80% | 19.40% | (20.50%) |
Foreign valuation allowance, percent | (3.40%) |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 |
Deferred tax liabilities: | |||
Property and equipment | $ 183,789 | $ 137,293 | |
Investments | 13,300 | 11,902 | |
Other intangible assets, including goodwill | 500,447 | 462,637 | |
Cost to fulfill - Rental merchandise in-service | 52,334 | 83,483 | |
Operating Lease Right-of-use Assets | 89,464 | 0 | |
Other | 45,589 | 37,309 | |
Gross deferred tax liability | 884,923 | 732,624 | |
Deferred tax assets: | |||
Deferred tax assets: | 30,625 | 11,949 | |
Insurance | 23,784 | 34,112 | |
Employee compensation and benefits | 128,771 | 113,269 | |
Accruals and allowances | 31,218 | 31,844 | |
Operating lease liabilities | 102,259 | 0 | |
NOL/credit carryforwards and other | 261,763 | 56,508 | |
Gross deferred tax asset, before valuation allowances | 578,420 | 247,682 | |
Valuation allowances | (38,977) | (17,532) | $ (29,023) |
Net deferred tax liability | $ 345,480 | $ 502,474 |
Income Taxes - Schedule of Valu
Income Taxes - Schedule of Valuation Allowance Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 02, 2020 | Sep. 27, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | $ (17,532) | $ (29,023) |
Additions | (21,445) | (2,330) |
Subtractions | 0 | 13,821 |
Balance, end of year | $ (38,977) | $ (17,532) |
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 | |
Oct. 02, 2020 | Sep. 27, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 36,272 | $ 29,089 |
Additions based on tax positions taken in the current year | 1,257 | 3,713 |
Additions for tax positions taken in prior years | 0 | 6,531 |
Reductions for remeasurements, settlements and payments | (392) | (1,484) |
Reductions due to statute expiration | (2,559) | (1,577) |
Balance, end of year | $ 34,578 | $ 36,272 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Mar. 27, 2020 | Mar. 26, 2020 | |
Income Tax [Line Items] | |||||
Current Income Tax Asset | $ 123,608 | $ 35,107 | |||
Accrued taxes | 3,100 | 8,100 | |||
Operating loss carryforwards | 90,500 | ||||
Valuation allowances | 38,977 | 17,532 | $ 29,023 | ||
Goodwill impairment | 198,600 | 0 | 0 | ||
Foreign tax credit carryforwards | 95,700 | ||||
Tax credit carry foward, general business | 56,700 | ||||
Tax credit carryforward, Interest | 10,700 | ||||
Deferred tax payable | 345,480 | 502,474 | |||
Gross unrecognized tax benefits | 34,578 | 36,272 | 29,089 | ||
Unrecognized tax benefits that would impact the effective tax rate | 32,300 | ||||
Adjustment in deferred tax liability | 2,300 | ||||
Accrued for interest and penalties | 4,600 | 5,500 | |||
Income tax penalties and interest expense | (800) | 600 | |||
Income tax expense (benefit) | (186,284) | 107,706 | (96,564) | ||
Net operating loss carried back to Pre-TCJA years | 63,400 | ||||
Reserve for NOL carryback, subject to expirataion | 5,000 | ||||
Tax expense (benefit), share-based payment arrangement, amount | 46,200 | ||||
Deferred income tax liability, provisional income tax expense (benefit) | $ 237,800 | ||||
Undistributed foreign earnings | 251,100 | 184,000 | |||
Tax liability on undistributed foreign earnings | 14,800 | 11,000 | |||
Food and Support Services - International | |||||
Income Tax [Line Items] | |||||
Valuation allowances | 21,400 | ||||
Goodwill impairment | 198,600 | ||||
CARES Act | |||||
Income Tax [Line Items] | |||||
Allowable percent of adjusted taxable income | 50.00% | 30.00% | |||
Income tax expense (benefit) | 58,400 | ||||
Income taxes receivable | 62,100 | ||||
CARES Act | Foreign Tax Authority | |||||
Income Tax [Line Items] | |||||
Income tax expense (benefit) | 65,100 | ||||
CARES Act | Domestic Tax Authority | |||||
Income Tax [Line Items] | |||||
Income tax expense (benefit) | 35,900 | ||||
Deferred Income Taxes and Other Noncurrent Liabilities | |||||
Income Tax [Line Items] | |||||
Deferred tax payable | 398,800 | 519,900 | |||
Other assets | |||||
Income Tax [Line Items] | |||||
Deferred tax assets | 53,300 | $ 17,400 | |||
Valuation Allowance, Operating Loss Carryforwards | |||||
Income Tax [Line Items] | |||||
Valuation allowances | $ 39,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 12 Months Ended | ||||||||||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Nov. 16, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Aug. 06, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | |
Class of Stock [Line Items] | |||||||||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||||||||
Covenant compliance waiver, maximum dividends if liquidity threshold met | $ 29,000,000 | ||||||||||
Covenant compliance waiver, liquidity threshold amount | 600,000,000 | ||||||||||
Covenant compliance waiver, maximum dividends if liquidity threshold is not met | 10,000,000 | ||||||||||
Dividends paid | $ 110,893,000 | $ 108,439,000 | $ 103,115,000 | ||||||||
Dividends declared (in dollars per share) | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | |||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||
Income tax expense (benefit) | $ (186,284,000) | $ 107,706,000 | $ (96,564,000) | ||||||||
Total Stockholders' Equity | |||||||||||
Class of Stock [Line Items] | |||||||||||
Capital contributions from stockholder | 14,814,000 | ||||||||||
Capital Surplus | |||||||||||
Class of Stock [Line Items] | |||||||||||
Income tax expense (benefit) | $ 4,100,000 | ||||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Treasury stock, shares, acquired | 300,000 | 1,600,000 | |||||||||
Treasury stock, value acquired | $ 6,500,000 | $ 50,000,000 | |||||||||
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) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Oct. 02, 2020 | Sep. 28, 2018 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | Sep. 29, 2017 | Dec. 01, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ 30,300 | $ 55,300 | $ 88,300 | ||||
Forfeiture rate | 9.00% | 6.40% | 8.70% | ||||
Performance Stock Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | (17,800) | 9,900 | $ 43,700 | ||||
2013 Stock Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 25,500,000 | ||||||
2018 and 2019 PSU Grants | Performance Stock Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated share-based compensation expense | $ (29,800) | ||||||
2018 PSU Grants | Performance Stock Units (PSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 100,000 | 100,000 | |||||
Allocated share-based compensation expense | $ (3,900) | $ (6,600) |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation by Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 30,300 | $ 55,300 | $ 88,300 |
Taxes related to share-based compensation | 7,200 | 13,700 | 24,100 |
Proceeds from issuance of common stock | 90,022 | 39,087 | 21,507 |
Tax benefit on option exercises | 46,200 | 4,800 | 7,400 |
Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 10,800 | 14,700 | 18,500 |
Retention Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 300 | 0 | 0 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 35,100 | 28,900 | 24,100 |
Performance Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | (17,800) | 9,900 | 43,700 |
Performance Stock Units (PSUs) | 2018 and 2019 PSU Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | (29,800) | ||
Performance Stock Units (PSUs) | 2018 PSU Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | (3,900) | (6,600) | |
Performance Stock Units (PSUs) | 2017 PSU Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | (5,200) | ||
Performance Stock Units (PSUs) | 2016 and 2017 PSU Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | 18,900 | ||
Deferred Stock and Other Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share-based compensation expense | $ 1,900 | $ 1,800 | $ 2,000 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Unrecognized Compensation Cost (Details) $ in Millions | 12 Months Ended |
Oct. 02, 2020USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 175.3 |
Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 38.2 |
Compensation cost not yet recognized, period for recognition | 2 years 8 months 19 days |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 114.9 |
Compensation cost not yet recognized, period for recognition | 2 years 7 months 9 days |
Performance Stock Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 0 |
Compensation cost not yet recognized, period for recognition | 1 year 10 months 24 days |
Retention Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Compensation cost not yet recognized | $ 22.2 |
Compensation cost not yet recognized, period for recognition | 4 years 5 months 26 days |
Share-Based Compensation - Time
Share-Based Compensation - Time-Based Options (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 30.3 | $ 55.3 | $ 88.3 | |
Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Requisite service period | 3 years | |||
Award expiration period | 10 years | |||
Expected volatility | 30.00% | 20.00% | 20.00% | |
Expected life (in years) | 6 years 2 months 19 days | 6 years 3 months | 6 years 3 months | |
Risk-free interest rate, minimum | 0.40% | 1.62% | 2.25% | |
Risk-free interest rate, maximum | 1.74% | 3.02% | 2.94% | |
Weighted-average grant-date fair value (in dollars per share) | $ 9.07 | $ 8.23 | $ 8.75 | |
Total intrinsic value exercised (in millions) | $ 114.6 | $ 26.8 | $ 16.6 | |
Total fair value that vested (in millions) | 9.9 | 16.3 | 17.3 | |
Performance-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value exercised (in millions) | $ 34.9 | $ 8.9 | $ 7.4 | |
Retention Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | 37.82% | |||
Expected dividend yield | 1.55% | |||
Expected life (in years) | 7 years | |||
Risk-free interest rate | 0.50% | |||
Weighted-average grant-date fair value (in dollars per share) | $ 3.93 | |||
Minimum | Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 1.01% | 1.17% | 1.03% | |
Maximum | Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 2.09% | 1.44% | 1.11% | |
Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated share-based compensation expense | $ 10.8 | $ 14.7 | $ 18.5 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Oct. 02, 2020USD ($)$ / sharesshares | |
Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Shares Outstanding (in shares) | shares | 12,356 |
Granted (in shares) | shares | 4,327 |
Exercised (in shares) | shares | (5,390) |
Forfeited and expired (in shares) | shares | (2,574) |
Ending Shares Outstanding (in shares) | shares | 8,719 |
Shares exercisable (in shares) | shares | 3,213 |
Shares Expected to Vest (in shares) | shares | 4,839 |
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 | $ 28.22 |
Granted Weighted-Average Exercise Price (in dollars per share) | $ / shares | 33.61 |
Exercised Weighted-Average Exercise Price (in dollars per share) | $ / shares | 21.72 |
Forfeited and expired Weighted-Average Exercise Price (in dollars per share) | $ / shares | 36.55 |
Ending Weighted-Average Exercise Price (in dollars per share) | $ / shares | 32.45 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | 29.49 |
Expected to vest Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 34.33 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Aggregated Intrinsic Value of Shares Outstanding | $ | $ 9,803 |
Aggregate Intrinsic Value, Exercisable | $ | 9,219 |
Aggregate Intrinsic Value of Shares Expected to Vest | $ | $ 481 |
Weighted-Average Remaining Term of Shares Outstanding | 7 years 3 months 18 days |
Weighted average remaining contractual term, Excercisable | 4 years 3 months 18 days |
Weighted-Average Remaining Term of Shares Expected to Vest | 8 years 10 months 24 days |
Performance-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Shares Outstanding (in shares) | shares | 1,511 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (1,205) |
Forfeited and expired (in shares) | shares | 0 |
Ending Shares Outstanding (in shares) | shares | 306 |
Shares exercisable (in shares) | shares | 306 |
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 | $ 12.77 |
Granted Weighted-Average Exercise Price (in dollars per share) | $ / shares | 0 |
Exercised Weighted-Average Exercise Price (in dollars per share) | $ / shares | 12.97 |
Forfeited and expired Weighted-Average Exercise Price (in dollars per share) | $ / shares | 0 |
Ending Weighted-Average Exercise Price (in dollars per share) | $ / shares | 11.99 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | $ 11.99 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Aggregated Intrinsic Value of Shares Outstanding | $ | $ 4,765 |
Aggregate Intrinsic Value, Exercisable | $ | $ 4,765 |
Weighted-Average Remaining Term of Shares Outstanding | 10 months 24 days |
Weighted average remaining contractual term, Excercisable | 10 months 24 days |
Retention Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Shares Outstanding (in shares) | shares | 0 |
Granted (in shares) | shares | 5,732 |
Exercised (in shares) | shares | 0 |
Forfeited and expired (in shares) | shares | 0 |
Ending Shares Outstanding (in shares) | shares | 5,732 |
Shares Expected to Vest (in shares) | shares | 4,275 |
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 | $ 0 |
Granted Weighted-Average Exercise Price (in dollars per share) | $ / shares | 66.15 |
Exercised Weighted-Average Exercise Price (in dollars per share) | $ / shares | 0 |
Forfeited and expired Weighted-Average Exercise Price (in dollars per share) | $ / shares | 0 |
Ending Weighted-Average Exercise Price (in dollars per share) | $ / shares | 66.15 |
Expected to vest Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 66.15 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Aggregated Intrinsic Value of Shares Outstanding | $ | $ 0 |
Aggregate Intrinsic Value of Shares Expected to Vest | $ | $ 0 |
Weighted-Average Remaining Term of Shares Outstanding | 9 years 10 months 24 days |
Weighted-Average Remaining Term of Shares Expected to Vest | 9 years 10 months 24 days |
Share-Based Compensation - Perf
Share-Based Compensation - Performance-Based Options Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Performance-Based Options | |||
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 | $ 34.9 | $ 8.9 | $ 7.4 |
Performance-Based Options | Performance-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 10 years | ||
Performance Stock Units (PSUs) | 2018 and 2019 Performance Stock Unit Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Stock Units (PSUs) | 2020 Performance Stock Unit Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years |
Share-Based Compensation - Defe
Share-Based Compensation - Deferred Stock and Time-Based Units Narrative (Details) | 1 Months Ended | 12 Months Ended |
Sep. 30, 2020numberOfTranches | Oct. 02, 2020$ / sharesshares | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 3,355,000 | |
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 | 33.00% | 25.00% |
Deferred Stock and Other Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | shares | 49,733 | |
Retention Time-Based Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of tranches | numberOfTranches | 6 | |
Exercise price incremental amount (in dollars per share) | $ 10 | |
Retention Time-Based Options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price (In dollars per share) | 35 | |
Retention Time-Based Options | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price (In dollars per share) | $ 85 |
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 |
Oct. 02, 2020$ / 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 | 2,649 |
Granted (in shares) | shares | 3,355 |
Vested (in shares) | shares | (925) |
Forfeited (in shares) | shares | (453) |
Ending balance (in shares) | shares | 4,626 |
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 | $ 36.89 |
Weighted Average Grant Date Fair Value, Granted (in dollars per shares) | $ / shares | 32.80 |
Weighted Average Grant Date Fair Value, Vested (in dollars per shares) | $ / shares | 35.79 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per shares) | $ / shares | 38.67 |
Weighted Average Grant Date Fair Value, Ending (in dollars per shares) | $ / shares | $ 34.08 |
Share-Based Compensation - Pe_2
Share-Based Compensation - Performance Stock Units Activity (Details) - Performance Stock Units (PSUs) shares in Thousands | 12 Months Ended |
Oct. 02, 2020$ / 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) | 1,621 |
Granted (in shares) | 642 |
Vested (in shares) | (590) |
Forfeited (in shares) | (358) |
Ending balance (in shares) | 1,315 |
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 | $ 36.20 |
Weighted Average Grant Date Fair Value, Granted (in dollars per shares) | $ / shares | 42.99 |
Weighted Average Grant Date Fair Value, Vested (in dollars per shares) | $ / shares | 34.13 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per shares) | $ / shares | 36.65 |
Weighted Average Grant Date Fair Value, Ending (in dollars per shares) | $ / shares | $ 37.61 |
Shares resulting from payout (in shares) | 300 |
Earnings Per Share - (Details)
Earnings Per Share - (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 02, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
(Loss) Earnings: | |||||||||||
Net Income (Loss) Attributable to Parent | $ (148,590) | $ (256,440) | $ (202,260) | $ 145,761 | $ 85,557 | $ 82,955 | $ 29,353 | $ 250,682 | $ (461,529) | $ 448,549 | $ 567,885 |
Shares: | |||||||||||
Basic weighted-average shares outstanding | 251,828 | 246,854 | 245,771 | ||||||||
Effect of dilutive securities (in shares) | 0 | 5,156 | 7,581 | ||||||||
Diluted weighted-average shares outstanding | 251,828 | 252,010 | 253,352 | ||||||||
Basic (Loss) Earnings Per Share: | |||||||||||
Net income attributable to Aramark stockholders (in dollars per share) | $ (1.83) | $ 1.82 | $ 2.31 | ||||||||
Diluted (Loss) Earnings Per Share: | |||||||||||
Net income attributable to Aramark stockholders (in dollars per share) | $ (1.83) | $ 1.78 | $ 2.24 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 2.3 | ||
Share-based Compensation Award | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 7.7 | 5.2 | 1.6 |
Performance Stock Units (PSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 1.1 | 1.3 | 1.2 |
Commitments And Contingencies -
Commitments And Contingencies - Narrative (Details) | 12 Months Ended | ||
Oct. 02, 2020USD ($) | Sep. 27, 2019USD ($)Lawsuit | Sep. 28, 2018USD ($) | |
Loss Contingencies [Line Items] | |||
Capital and other purchase commitments | $ 816,100,000 | ||
Letters of credit outstanding | 191,700,000 | ||
Amounts accrued for guarantee arrangements | $ 0 | ||
Litigation settlement expense | $ 21,000,000 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Primary vehicle lease, term | 1 year | ||
Number of class action lawsuits | Lawsuit | 2 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Primary vehicle lease, term | 30 years | ||
Maximum potential liability from vehicle leases | $ 28,500,000 | ||
Residual value guarantee, value assumptions, terminal fair value of vehicles coming off lease | 0 | ||
Accrued Payroll and Related Expenses | |||
Loss Contingencies [Line Items] | |||
Separation costs | 145,800,000 | ||
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 | |
Employee Severance and Other Costs | Accrued Payroll and Related Expenses | |||
Loss Contingencies [Line Items] | |||
Separation costs | 0 | ||
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 | ||
Loss Contingency, Accrual, Current | $ 5,500,000 | ||
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-Therafter | 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 | |||||||||
Oct. 02, 2020 | Jun. 26, 2020 | Mar. 27, 2020 | Dec. 27, 2019 | Sep. 27, 2019 | Jun. 28, 2019 | Mar. 29, 2019 | Dec. 28, 2018 | Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 2,692,150 | $ 2,152,253 | $ 3,731,559 | $ 4,253,597 | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 12,829,559 | $ 16,227,341 | $ 15,789,633 |
Cost of services provided | 2,552,351 | 2,265,614 | 3,407,589 | 3,768,113 | 3,503,280 | 3,594,978 | 3,639,959 | 3,794,445 | 11,993,667 | 14,532,662 | 13,997,911 |
Net income (loss) | (148,989) | (256,308) | (202,021) | 145,883 | 85,414 | 83,064 | 29,310 | 250,676 | |||
Net income (loss) attributable to Aramark stockholders | $ (148,590) | $ (256,440) | $ (202,260) | $ 145,761 | $ 85,557 | $ 82,955 | $ 29,353 | $ 250,682 | $ (461,529) | $ 448,549 | $ 567,885 |
Earnings (Loss) per share: | |||||||||||
Basic (in dollars per share) | $ (0.59) | $ (1.01) | $ (0.80) | $ 0.59 | $ 0.35 | $ 0.34 | $ 0.12 | $ 1.02 | |||
Diluted (in dollars per share) | (0.59) | (1.01) | (0.80) | 0.57 | 0.34 | 0.33 | 0.12 | 0.99 | |||
Dividends paid per common share (in dollars per share) | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 | $ 0.110 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 02, 2020USD ($) | Jun. 26, 2020USD ($) | Mar. 27, 2020USD ($) | Dec. 27, 2019USD ($) | Sep. 27, 2019USD ($) | Jun. 28, 2019USD ($) | Mar. 29, 2019USD ($) | Dec. 28, 2018USD ($) | Oct. 02, 2020USD ($)segment | Sep. 27, 2019USD ($) | Sep. 28, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Other compensation expense | $ 74,900 | ||||||||||
Revenue | $ 2,692,150 | $ 2,152,253 | $ 3,731,559 | $ 4,253,597 | $ 3,951,244 | $ 4,010,761 | $ 3,999,987 | $ 4,265,349 | $ 12,829,559 | 16,227,341 | $ 15,789,633 |
Operating (Loss) Income | (264,919) | 891,159 | 818,411 | ||||||||
Interest and Other Financing Costs, net | (382,800) | (334,987) | (346,535) | ||||||||
(Loss) Income Before Income Taxes | (647,719) | 556,172 | 471,876 | ||||||||
Depreciation and amortization | 595,195 | 592,573 | 596,182 | ||||||||
Capital expenditures and client contract investments and other | 419,800 | 506,400 | 912,100 | ||||||||
Assets | 15,712,684 | 13,736,321 | 15,712,684 | 13,736,321 | |||||||
Property and Equipment, net | 2,050,908 | 2,181,762 | 2,050,908 | 2,181,762 | |||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 9,560,900 | 12,070,000 | 11,795,600 | ||||||||
Property and Equipment, net | 1,759,200 | 1,854,700 | 1,759,200 | 1,854,700 | |||||||
Foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 3,268,700 | 4,157,300 | 3,994,000 | ||||||||
Property and Equipment, net | 291,700 | 327,100 | 291,700 | 327,100 | |||||||
Cost of Services Provided and Selling and General Corporate Expenses | COVID-Related Severance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Charges | 145,800 | ||||||||||
FSS United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other compensation expense | 58,700 | ||||||||||
Revenue | 7,366,700 | 9,898,600 | 10,137,800 | ||||||||
FSS United States | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 7,366,700 | 9,898,600 | |||||||||
FSS United States | Cost of services provided | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain on investments | 15,300 | 16,200 | |||||||||
FSS United States | Cost of Services Provided and Selling and General Corporate Expenses | COVID-Related Severance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Charges | 51,800 | ||||||||||
FSS International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other compensation expense | 400 | ||||||||||
Revenue | 2,945,800 | 3,742,900 | 3,655,800 | ||||||||
FSS International | Cost of Services Provided and Selling and General Corporate Expenses | COVID-Related Severance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Charges | 87,300 | ||||||||||
Uniform | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other compensation expense | 14,400 | ||||||||||
Revenue | 2,517,100 | 2,585,800 | 1,996,000 | ||||||||
Uniform | Cost of Services Provided and Selling and General Corporate Expenses | COVID-Related Severance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Charges | 4,900 | ||||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other compensation expense | 1,400 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating (Loss) Income | (167,400) | 1,050,800 | 1,006,300 | ||||||||
Operating Segments | FSS United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating (Loss) Income | 5,300 | 716,800 | 682,700 | ||||||||
Depreciation and amortization | 379,200 | 381,600 | 405,000 | ||||||||
Capital expenditures and client contract investments and other | 310,000 | 375,900 | 494,300 | ||||||||
Assets | 8,171,600 | 8,368,100 | 8,171,600 | 8,368,100 | |||||||
Operating Segments | FSS International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating (Loss) Income | (344,200) | 142,700 | 142,200 | ||||||||
Depreciation and amortization | 76,200 | 69,400 | 64,800 | ||||||||
Capital expenditures and client contract investments and other | 48,900 | 69,400 | 84,100 | ||||||||
Assets | 1,963,200 | 2,039,200 | 1,963,200 | 2,039,200 | |||||||
Operating Segments | Uniform | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating (Loss) Income | 171,500 | 191,300 | 181,400 | ||||||||
Depreciation and amortization | 137,200 | 138,700 | 123,400 | ||||||||
Capital expenditures and client contract investments and other | 58,800 | 61,000 | 332,500 | ||||||||
Assets | 3,159,900 | 3,118,700 | 3,159,900 | 3,118,700 | |||||||
Corporate, Non-Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating (Loss) Income | (97,500) | (159,600) | (187,900) | ||||||||
Depreciation and amortization | 2,600 | 2,900 | 3,000 | ||||||||
Capital expenditures and client contract investments and other | 2,100 | 100 | 1,200 | ||||||||
Assets | $ 2,418,000 | $ 210,300 | 2,418,000 | 210,300 | |||||||
Corporate, Non-Segment | Cost of Services Provided and Selling and General Corporate Expenses | COVID-Related Severance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Charges | 1,800 | ||||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest and Other Financing Costs, net | (382,800) | (335,000) | (346,600) | ||||||||
(Loss) Income Before Income Taxes | (647,700) | 556,200 | $ 471,800 | ||||||||
Facilities & Other | FSS United States | United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 1,492,600 | $ 1,591,800 | |||||||||
Product Concentration Risk | Food Services | Sales Revenue, Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 73.00% | ||||||||||
Product Concentration Risk | Facilities & Other | Sales Revenue, Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 27.00% |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Thousands | Oct. 02, 2020 | Sep. 27, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 0 | |
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 | $ 9,260,000 | 6,851,200 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value of debt | $ 9,278,400 | $ 6,682,200 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 02, 2020 | Sep. 27, 2019 | Sep. 28, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Additions | $ 21,445 | $ 2,330 | |
Subtractions | 0 | 13,821 | |
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 | 49,566 | 52,682 | $ 53,416 |
Additions | 64,655 | 21,821 | 22,009 |
Subtractions | 39,296 | 24,937 | 22,743 |
Balance, End of Period | $ 74,925 | $ 49,566 | $ 52,682 |