Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2023 | Oct. 27, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Sep. 29, 2023 | ||
Current Fiscal Year End Date | --09-29 | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,449.8 | ||
Entity Common Stock, Shares Outstanding | 261,508,489 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001584509 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A relating to the registrant's 2024 Annual Meeting of Stockholders, to be held on January 30, 2024, will be incorporated by reference in this Form 10-K in response to portions of Part III. The definitive proxy statement will be filed with the Securities and Exchange Commission not later than 120 days after the registrant's fiscal year ended September 29, 2023. |
Audit Information
Audit Information | 12 Months Ended |
Sep. 29, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Firm ID | 34 |
Auditor Location | Philadelphia, PA |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,963,139 | $ 329,452 |
Receivables (less allowances: $56,572 and $56,388) | 2,363,698 | 2,147,957 |
Inventories | 578,427 | 552,386 |
Prepayments and other current assets | 314,763 | 262,195 |
Total current assets | 5,220,027 | 3,291,990 |
Property and Equipment, at cost: | ||
Land, buildings and improvements | 1,086,683 | 1,035,359 |
Service equipment and fixtures | 4,686,327 | 4,481,711 |
Property and Equipment, gross | 5,773,010 | 5,517,070 |
Less - Accumulated depreciation | (3,682,507) | (3,485,025) |
Property and Equipment, net | 2,090,503 | 2,032,045 |
Goodwill | 5,579,529 | 5,515,124 |
Other Intangible Assets | 2,043,082 | 2,113,726 |
Operating Lease Right-of-use Assets | 630,158 | 592,145 |
Other Assets | 1,307,942 | 1,537,406 |
Assets | 16,871,241 | 15,082,436 |
Current Liabilities: | ||
Current maturities of long-term borrowings | 1,596,942 | 65,047 |
Current operating lease liabilities | 71,206 | 68,858 |
Accounts payable | 1,406,356 | 1,322,936 |
Accrued payroll and related expenses | 593,597 | 656,974 |
Accrued expenses and other current liabilities | 1,361,866 | 1,172,071 |
Total current liabilities | 5,029,967 | 3,285,886 |
Long-Term Borrowings | 6,666,572 | 7,345,860 |
Noncurrent Operating Lease Liabilities | 291,955 | 305,623 |
Deferred Income Taxes and Other Noncurrent Liabilities | 1,161,805 | 1,106,587 |
Commitments and Contingencies (see Note 14) | ||
Redeemable Noncontrolling Interests | 8,224 | 8,840 |
Stockholders' Equity: | ||
Common stock, par value $0.01 (authorized: 600,000,000 shares; issued: 301,069,012 shares and 297,555,924 shares; and outstanding: 261,450,373 shares and 258,728,942 shares) | 3,011 | 2,976 |
Capital surplus | 3,825,620 | 3,681,966 |
Retained earnings | 964,158 | 406,784 |
Accumulated other comprehensive loss | (98,237) | (111,571) |
Treasury stock (shares held in treasury: 39,618,639 shares and 38,826,982 shares) | (981,834) | (950,515) |
Total stockholders' equity | 3,712,718 | 3,029,640 |
Liabilities and Stockholders’ Equity | $ 16,871,241 | $ 15,082,436 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts | $ 56,572 | $ 56,388 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 301,069,012 | 297,555,924 |
Common stock, shares outstanding (in shares) | 261,450,373 | 258,728,942 |
Treasury stock (in shares) | 39,618,639 | 38,826,982 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 18,853,857 | $ 16,326,624 | $ 12,095,965 |
Costs and Expenses: | |||
Cost of services provided (exclusive of depreciation and amortization) | 17,037,797 | 14,767,570 | 11,007,080 |
Depreciation and amortization | 546,362 | 532,327 | 550,692 |
Selling and general corporate expenses | 406,772 | 398,362 | 346,749 |
Costs and Expenses | 17,990,931 | 15,698,259 | 11,904,521 |
Operating income | 862,926 | 628,365 | 191,444 |
Gain on Equity Investments, net (see Note 1) | (427,803) | 0 | (137,934) |
Loss on Defined Benefit Pension Plan Termination | 0 | 0 | 60,864 |
Interest and Other Financing Costs, net | 439,585 | 372,727 | 401,366 |
Income (Loss) Before Income Taxes | 851,144 | 255,638 | (132,852) |
Provision (Benefit) for Income Taxes | 177,614 | 61,461 | (40,633) |
Net income (loss) | 673,530 | 194,177 | (92,219) |
Less: Net loss attributable to noncontrolling interests | (578) | (307) | (1,386) |
Net income (loss) attributable to Aramark stockholders | $ 674,108 | $ 194,484 | $ (90,833) |
Earnings (Loss) per share attributable to Aramark stockholders: | |||
Basic (in dollars per share) | $ 2.59 | $ 0.76 | $ (0.36) |
Diluted (in dollars per share) | $ 2.57 | $ 0.75 | $ (0.36) |
Weighted Average Shares Outstanding: | |||
Basic (in shares) | 260,592 | 257,314 | 254,748 |
Diluted (in shares) | 262,594 | 259,074 | 254,748 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 673,530 | $ 194,177 | $ (92,219) |
Other comprehensive income, net of tax: | |||
Pension plan adjustments | (7,031) | 17,113 | 48,568 |
Foreign currency translation adjustments | 20,273 | (86,376) | 8,925 |
Cash flow hedges: | |||
Unrealized gains arising during the period | 38,140 | 143,276 | 909 |
Reclassification adjustments | (43,746) | 20,698 | 37,440 |
Share of equity investee's comprehensive income | 5,698 | 1,729 | 3,405 |
Other comprehensive income, net of tax | 13,334 | 96,440 | 99,247 |
Comprehensive income | 686,864 | 290,617 | 7,028 |
Less: Net loss attributable to noncontrolling interests | (578) | (307) | (1,386) |
Comprehensive income attributable to Aramark stockholders | $ 687,442 | $ 290,924 | $ 8,414 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 673,530 | $ 194,177 | $ (92,219) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 546,362 | 532,327 | 550,692 |
Asset write-downs | 37,563 | 0 | 0 |
Reduction of contingent consideration liability (see Note 16) | (97,336) | (20,749) | 0 |
Gain on equity investments, net (see Note 1) | (427,803) | 0 | (137,934) |
Loss on defined benefit pension plan termination | 0 | 0 | 60,864 |
Deferred income taxes | 114,545 | 35,422 | (43,234) |
Share-based compensation expense | 86,938 | 95,487 | 71,053 |
Changes in operating assets and liabilities: | |||
Accounts Receivable | (201,485) | (462,685) | (290,214) |
Inventories | (37,858) | (71,500) | (7,536) |
Prepayments and Other Current Assets | (8,302) | (3,783) | 101,939 |
Accounts Payable | 92,632 | 421,763 | 252,158 |
Accrued Expenses | 82,399 | 7,536 | 261,154 |
Payments made to clients on contracts | (119,217) | (56,865) | (100,918) |
Changes in other noncurrent liabilities | 13,941 | 14,914 | (17,427) |
Changes in other assets | 27,915 | (6,878) | 4,177 |
Other operating activities | (17,395) | 15,333 | 44,524 |
Net cash provided by operating activities | 766,429 | 694,499 | 657,079 |
Cash flows from investing activities: | |||
Purchases of property and equipment and other | (461,406) | (388,397) | (407,818) |
Disposals of property and equipment | 29,240 | 23,642 | 32,474 |
Purchases of marketable securities | (109,998) | (78,220) | 0 |
Proceeds from marketable securities | 80,000 | 0 | 0 |
Acquisition of certain businesses, net of cash acquired | (50,194) | (340,022) | (265,766) |
Acquisition of certain equity investments | (4,000) | (64,000) | 0 |
Proceeds from sale of equity investments | 685,048 | 0 | 0 |
Other investing activities | 40,222 | 15,710 | 6,724 |
Net cash provided by (used in) investing activities | 208,912 | (831,287) | (634,386) |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 2,786,526 | 100,051 | 893,993 |
Payments of long-term borrowings | (1,929,846) | (152,338) | (2,453,571) |
Net change in funding under the Receivables Facility | (104,935) | 104,935 | (315,600) |
Payments of dividends | (114,614) | (113,120) | (112,010) |
Proceeds from issuance of common stock | 46,974 | 49,322 | 41,587 |
Other financing activities | (30,456) | (26,544) | (59,738) |
Net cash provided by (used in) financing activities | 653,649 | (37,694) | (2,005,339) |
Effect of foreign exchange rates on cash and cash equivalents | 4,697 | (28,657) | 6,049 |
Increase (decrease) in cash and cash equivalents | 1,633,687 | (203,139) | (1,976,597) |
Cash and cash equivalents, beginning of period | 329,452 | 532,591 | 2,509,188 |
Cash and cash equivalents, end of period | $ 1,963,139 | $ 329,452 | $ 532,591 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance Beginning at Oct. 02, 2020 | $ 2,735,988 | $ 2,907 | $ 3,416,132 | $ 532,379 | $ (307,258) | $ (908,172) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) attributable to Aramark stockholders | (90,833) | (90,833) | ||||
Other comprehensive income | 99,247 | 99,247 | ||||
Capital contributions from issuance of common stock | 45,905 | 36 | 45,869 | |||
Share-based compensation expense | 71,053 | 71,053 | ||||
Repurchases of common stock | (24,499) | (24,499) | ||||
Payments of dividends ($0.44 per share) | (113,989) | (113,989) | ||||
Balance Ending at Oct. 01, 2021 | 2,722,872 | 2,943 | 3,533,054 | 327,557 | (208,011) | (932,671) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) attributable to Aramark stockholders | 194,484 | 194,484 | ||||
Other comprehensive income | 96,440 | 96,440 | ||||
Capital contributions from issuance of common stock | 53,458 | 33 | 53,425 | |||
Share-based compensation expense | 95,487 | 95,487 | ||||
Repurchases of common stock | (17,844) | (17,844) | ||||
Payments of dividends ($0.44 per share) | (115,257) | (115,257) | ||||
Balance Ending at Sep. 30, 2022 | 3,029,640 | 2,976 | 3,681,966 | 406,784 | (111,571) | (950,515) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) attributable to Aramark stockholders | 674,108 | 674,108 | ||||
Other comprehensive income | 13,334 | 13,334 | ||||
Capital contributions from issuance of common stock | 56,751 | 35 | 56,716 | |||
Share-based compensation expense | 86,938 | 86,938 | ||||
Repurchases of common stock | (31,319) | (31,319) | ||||
Payments of dividends ($0.44 per share) | (116,734) | (116,734) | ||||
Balance Ending at Sep. 29, 2023 | $ 3,712,718 | $ 3,011 | $ 3,825,620 | $ 964,158 | $ (98,237) | $ (981,834) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity - Parentheticals - $ / shares | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 |
Nature of Business, Basis of Pr
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies | NATURE OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Aramark (the "Company") is a leading global provider of food and facilities 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 14-country footprint. The Company also provides services on a more limited basis in several additional countries and in offshore locations. The Company operated 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") - Provided a full-service employee uniform solution, resulting in a contracted and recurring revenue model. The customer base was serviced by a leading geographic footprint in the United States and Canada with programs focused on uniforms, floor mats, towels, linens, restroom supplies, first-aid supplies, safety products and other workplace supplies. Customers operated in the United States and Canada in a wide range of industries, including manufacturing, hospitality, retail, food processing, pharmaceuticals, healthcare and automotive. 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. Subsequent to the end of fiscal 2023, the Company completed the previously announced separation of its Uniform segment into an independent publicly traded company, Vestis Corporation (“Vestis”), on September 30, 2023. The separation was structured as a tax free spin-off, which occurred by way of a pro rata distribution to Aramark stockholders. Each of the Aramark stockholders received one share of Vestis common stock for every two shares of Aramark common stock held of record as of the close of business on September 20, 2023. Vestis is now an independent public company under the symbol “VSTS” on the New York Stock Exchange. With the completion of the separation and distribution, the historical results of the Uniform segment will be presented as discontinued operations in the Company's consolidated financial statements beginning in the first quarter of fiscal 2024. Refer to Note 15 for Uniform reportable segment financial disclosures. During fiscal 2023 and fiscal 2022, the Company incurred charges of $51.1 million and $9.3 million, respectively, related to the Company's separation and distribution of its Uniform segment, including salaries and benefits, recruiting and relocation costs, accounting and legal related expenses, branding and other costs. Subsequent to September, 29, 2023, the Company incurred approximately $20.0 million of banker fees related to the separation and distribution of its Uniform segment. Fiscal Year The Company's fiscal year is the fifty-two or fifty-three week period which ends on the Friday nearest September 30th. The fiscal years ended September 29, 2023, September 30, 2022 and October 1, 2021 were each fifty-two week periods. New Accounting Standards Updates Adopted Standards (from most to least recent date of issuance) In December 2022, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which defers the sunset date of Topic 848, Reference Rate Reform , to December 31, 2024 from December 31, 2022 and is effective for the Company upon issuance of the ASU. In January 2021, the FASB issued an ASU, which clarified certain optional expedients and exceptions for contract modifications and hedge accounting that may apply to derivatives that are affected by the discontinuance of the London Interbank Offer Rate ("LIBOR") and the reference rate reform standard. In March 2020, the FASB issued an ASU which provided optional expedients that may be applied to assist with the discontinuance of LIBOR. The expedients allowed 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 fiscal 2020, the Company applied 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 rate reform. During the third quarter of fiscal 2023, the Company applied the optional expedient related to assessment of effectiveness, whereas the Company elected to continue the method of assessing effectiveness as documented in the original hedge documentation and elected to apply the optional expedient so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. The Company may apply the optional expedients of this standard through December 31, 2024. The adoption of this guidance did not have a material impact on the consolidated financial statements. In November 2021, the FASB issued an ASU which requires an entity to provide certain annual disclosures when they have received government assistance. The guidance was effective for the Company in the first quarter of fiscal 2023. The adoption of this guidance did not have a material impact on the consolidated financial statements. Standards Not Yet Adopted (from most to least recent date of issuance) In September 2022, the FASB issued an ASU to enhance the transparency of supplier finance programs, which may be referred to as reverse factoring, payables finance or structured payables arrangements. The guidance will require that a buyer in a supplier finance program disclose the program's nature, activity and potential magnitude. The guidance is effective for the Company in the first quarter of fiscal 2024 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the consolidated financial statements. In October 2021, the FASB issued an ASU which required that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606") as if it had originated the contracts. The guidance is effective for the Company in the first quarter of fiscal 2024 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the consolidated financial statements. Other new accounting pronouncements recently issued or newly effective were not applicable to the Company, did not have a material impact on the consolidated financial statements or are not expected to have a material impact on the consolidated financial statements. 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 be entitled to 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 (exclusive of depreciation and amortization)." 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. The majority of the Company’s receivables balances are based on contracts with customers. The Company estimates and reserves for its credit loss exposure based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount in estimating credit losses. Credit loss expense is classified within "Cost of services provided (exclusive of depreciation and amortization)." 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 (exclusive of depreciation and amortization)," "Inventory," or "Property and equipment, net." Income from rebates, allowances and volume discounts is recognized based on actual purchases in the fiscal period relative to total actual purchases to be made for the contractual rebate period agreed to with the vendor. Rebates, allowances and volume discounts related to “Inventory” held at the balance sheet date are deducted from the carrying value of these inventories. Rebates, allowances and volume discounts related to "Property and equipment, net" are deducted from the costs capitalized. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could materially differ from those estimates. Comprehensive Income Comprehensive income includes all changes to stockholders' equity during a period, except those resulting from investments by and distributions to stockholders. Components of comprehensive income include net income (loss), changes in foreign currency translation adjustments (net of tax), pension plan adjustments (net of tax), changes in the fair value of cash flow hedges (net of tax) and changes to the share of any equity investees' comprehensive income (net of tax). The summary of the components of comprehensive income is as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income (loss) $ 673,530 $ 194,177 $ (92,219) Pension plan adjustments (7,960) 929 (7,031) 26,184 (9,071) 17,113 63,959 (15,391) 48,568 Foreign currency translation adjustments 28,136 (7,863) 20,273 (96,783) 10,407 (86,376) 7,383 1,542 8,925 Cash flow hedges: Unrealized gains arising during the period 51,541 (13,401) 38,140 193,616 (50,340) 143,276 1,228 (319) 909 Reclassification adjustments (59,117) 15,371 (43,746) 27,970 (7,272) 20,698 50,595 (13,155) 37,440 Share of equity investee's comprehensive income 10,616 (4,918) 5,698 1,729 — 1,729 3,405 — 3,405 Other comprehensive income 23,216 (9,882) 13,334 152,716 (56,276) 96,440 126,570 (27,323) 99,247 Comprehensive income 686,864 290,617 7,028 Less: Net loss attributable to noncontrolling interests (578) (307) (1,386) Comprehensive income attributable to Aramark stockholders $ 687,442 $ 290,924 $ 8,414 Accumulated other comprehensive loss consists of the following (in thousands): September 29, 2023 September 30, 2022 Pension plan adjustments $ (14,241) $ (7,210) Foreign currency translation adjustments (193,115) (213,388) Cash flow hedges 109,119 114,725 Share of equity investee's accumulated other comprehensive loss — (5,698) $ (98,237) $ (111,571) Currency Translation Gains and losses resulting from the translation of financial statements of non-United States subsidiaries are reflected as a component of accumulated other comprehensive 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 $10.4 million, $3.5 million and $1.8 million during fiscal 2023, fiscal 2022 and fiscal 2021, respectively, to the Consolidated Statements of Income (Loss). The impact of foreign currency transaction gains and losses exclusive of Argentina's operations included in the Company's operating results for fiscal 2023, fiscal 2022 and fiscal 2021 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. The Company insures portions of its risk related to general liability, automobile liability, workers’ compensation liability claims as well as certain property damage risks through a wholly owned captive insurance subsidiary (the "Captive") as part of its approach to risk finance. 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 September 29, 2023. 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, workers’ compensation liability, certain property damage and related Captive costs. As of September 29, 2023 and September 30, 2022, cash and cash equivalents at the Captive were $32.8 million and $23.1 million, respectively. During fiscal 2022, the Captive began investing a portion of its cash and cash equivalents in United States Treasury securities to improve returns on the Captive's assets. The amount of this investment as of September 29, 2023 and September 30, 2022 was $110.7 million and $78.2 million, respectively, and recorded in "Prepayments and other current assets" on the Consolidated Balance Sheets. Inventories are valued at the lower of cost (principally the first-in, first-out method) or net realizable value. As of September 29, 2023 and September 30, 2022, the Company's reserve for inventory was $21.0 million and $51.3 million, respectively. The decrease in the Company's reserve was primarily due to the write-off and disposal of personal protective equipment inventory. The inventory reserve is determined based on history and projected customer consumption and specific identification. During the fourth quarter of fiscal 2022, the Company decided to no longer sell personal protective equipment, which required inventory write-downs to zero net realizable value. The Company recorded $19.6 million and $25.4 million in inventory write-down charges to the Consolidated Statements of Income (Loss) during fiscal 2022 and fiscal 2021, respectively, to reflect the net realizable value of PPE inventory within the Uniform segment. The components of inventories are as follows: September 29, 2023 September 30, 2022 Food 66.9 % 64.0 % Career apparel and linens 28.6 % 31.7 % Parts, supplies and novelties 4.5 % 4.3 % 100.0 % 100.0 % 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): September 29, 2023 September 30, 2022 Prepaid Insurance $ 21,573 $ 15,192 Prepaid Taxes and Licenses 13,575 11,087 Current Income Tax Asset 10,198 10,842 Marketable Securities (1) 110,714 78,204 Other Prepaid Expenses 158,703 146,870 $ 314,763 $ 262,195 (1) Marketable securities represent held-to-maturity debt securities with original maturities greater than three months, which are maturing within one 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 generally 10 years to 40 years for buildings and improvements and three years to 20 years for service equipment and fixtures. Depreciation expense during fiscal 2023, fiscal 2022 and fiscal 2021 was $371.7 million, $367.1 million and $378.3 million, respectively. During the first half of fiscal 2023, the Company completed a strategic review of certain administrative locations, taking into account facility capacity and current utilization, among other factors. Based on this review, the Company vacated or otherwise reduced its usage at certain of these locations, resulting in an analysis of the recoverability of the assets associated with the locations. As a result, during fiscal 2023, the Company recorded an impairment charge of $26.7 million within its FSS United States and Uniform segments, which is included in "Cost of services provided (exclusive of depreciation and amortization)" on the Consolidated Statements of Income (Loss). During fiscal 2023, the non-cash impairment charges within the FSS United States segment consisted of operating lease right-of-use assets of $8.6 million and property and equipment of $10.4 million. During fiscal 2023, the non-cash impairment charges within the Uniform segment consisted of operating lease right-of-use assets of $7.1 million and other costs of $0.6 million. Other Assets The following table presents details of "Other Assets" as presented in the Consolidated Balance Sheets (in thousands): September 29, 2023 September 30, 2022 Cost to fulfill - Client (1) $ 92,458 $ 97,830 Cost to fulfill - Rental merchandise in-service (2) 366,677 359,657 Long-term receivables 24,403 26,412 Miscellaneous investments (3) 184,955 405,463 Computer software costs, net (4) 202,665 199,521 Interest rate swap agreements (5) 147,458 149,755 Employee sales commissions (6) 138,400 131,443 Other (7) 150,926 167,325 $ 1,307,942 $ 1,537,406 (1) Cost to fulfill - Client represent payments made by the Company to enhance the service resources used by the Company to satisfy its performance obligation (see Note 7). (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. (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 8.2 million (5) Interest rate swaps represent receivable under cash flow hedging agreements based on current forward interest rates (see Note 6). (6) Employee sales commissions represent commission payments made to employees related to new or retained business contracts (see Note 7). (7) Other consists primarily of noncurrent deferred tax assets, pension assets, deferred financing costs on certain revolving credit facilities and other noncurrent assets. For investments in 50% or less owned entities accounted for under the equity method of accounting, the carrying amount as of September 29, 2023 and September 30, 2022 was $99.3 million and $224.5 million, respectively. On April 6, 2023, the Company sold its 50% ownership interest in AIM Services Co., Ltd., a leading Japanese food services company, to Mitsui & Co., Ltd. for $535.0 million in cash in a taxable transaction resulting in a pre-tax gain on sale of this equity investment of $377.1 million ($278.7 million net of tax) during fiscal 2023. The pre-tax gain is included in "Gain on Equity Investments, net" on the Consolidated Statements of Income (Loss). 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 September 29, 2023 and September 30, 2022 was $85.1 million and $180.5 million, respectively. On May 16, 2023, the Company sold a portion of its equity investment ownership interest in the San Antonio Spurs NBA franchise for $98.2 million in cash in a taxable transaction resulting in a pre-tax loss on sale of this equity investment of $1.1 million ($2.2 million net of tax) during fiscal 2023. The pre-tax loss is included in "Gain on Equity Investments, net" on the Consolidated Statements of Income (Loss). On September 22, 2023, the Company sold its ownership interest in an equity investment in a foreign company for $51.9 million in cash in a taxable transaction resulting in a pre-tax gain on sale of this equity investment of $51.8 million ($51.8 million net of tax) during fiscal 2023. The pre-tax gain is included in "Gain on Equity Investments, net" on the Consolidated Statements of Income (Loss). During fiscal 2021, the Company identified an observable price change related to its equity investment without a readily determinable fair value related to the San Antonio Spurs NBA franchise and recognized a non-cash gain of $137.9 million included in "Gain on Equity Investments, net" on the Consolidated Statements of Income (Loss). Other Accrued Expenses and Liabilities The following table presents details of "Accrued expenses and other current liabilities" in the Consolidated Balance Sheets (in thousands): September 29, 2023 September 30, 2022 Deferred income (1) $ 360,936 $ 346,954 Accrued client expenses 212,303 172,894 Accrued taxes 91,971 58,988 Accrued insurance (2) and interest 194,830 184,676 Other 501,826 408,559 $ 1,361,866 $ 1,172,071 (1) Includes consideration received in advance from customers prior to the service being performed ($340.6 million and $324.5 million) or from vendors prior to the goods being consumed ($20.3 million and $22.4 million) in fiscal 2023 and fiscal 2022, respectively. (2) 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, workers’ compensation liability and certain property damage programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on the Company's 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): September 29, 2023 September 30, 2022 Deferred income taxes (see Note 10) $ 610,470 $ 501,404 Deferred compensation 211,892 211,703 Pension-related liabilities 11,205 11,775 Insurance reserves (1) 147,641 141,104 Other noncurrent liabilities (2) 180,597 240,601 $ 1,161,805 $ 1,106,587 (1) The Company is self-insured for certain obligations for certain risks retained under its general liability, automobile liability, workers’ compensation liability and certain property damage programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on the Company's claims history. (2) Fiscal 2022 includes the contingent consideration liabilities related to the Union Supply Group, Inc. acquisition ($45.8 million) and Next Level acquisition ($48.4 million) (see Note 16). Impact of COVID-19 COVID-19 adversely affected global economies, disrupted global supply chains and labor force participation and created significant volatility and disruption of financial markets. COVID-19 related disruptions negatively impacted the Company's financial and operating results through the first half of fiscal 2021. The Company's financial results started to improve during the second half of fiscal 2021 and continued to improve throughout fiscal 2022 as COVID-19 restrictions were lifted and operations re-opened. The Coronavirus Aid, Relief and Economic Security Act ("CARES Act") provided for deferred payment of the employer portion of social security taxes through the end of calendar 2020, with 50% of the deferred amount due December 31, 2021 and the remaining 50% due December 31, 2022. Deferred social security taxes of $64.2 million were paid in fiscal 2022 and remaining social security taxes of $64.2 million were paid in fiscal 2023. The CARES Act provided an employee retention credit, which is a refundable tax credit against certain employment taxes. During the fiscal year ended October 1, 2021, the Company recorded $15.1 million related to the employee retention credit in "Cost of services provided (exclusive of depreciation and amortization)" on the Company's Consolidated Statements of Income (Loss). As of September 29, 2023, the Company has a $20.4 million receivable balance from the United States government related to the CARES Act, which is recorded in "Receivables" on the Company's Consolidated Balance Sheet. Within the FSS International and Uniform segments, many foreign jurisdictions in which the Company operates provided companies various forms of relief from COVID-19, including labor related tax credits. These labor related tax credits generally allowed companies to receive credits if they retained employees on their payroll, rather than furloughing or terminating employees as a result of the business disruption caused by COVID-19. The Company qualified for these tax credits. The Company recorded $37.0 million and $155.3 million of labor related tax credits within "Cost of services provided (exclusive of depreciation and amortization)" on the Consolidated Statements of Income (Loss) during the fiscal years ended September 30, 2022 and October 1, 2021, respectively, of which $0.4 million and $17.9 million, respectively, were recorded in the Uniform segment with the remaining balances recorded in the FSS International segment. The Company accounted for these labor related tax credits as a reduction to the expense that they were intended to compensate in the period in which the corresponding expense was incurred and there was reasonable assurance the Company would both receive the tax credits and comply with all conditions attached to the tax credits. Supplemental Cash Flow Information Fiscal Year Ended (in millions) September 29, 2023 September 30, 2022 October 1, 2021 Interest paid $ 410.5 $ 333.3 $ 369.7 Income taxes paid (refunded) 47.0 16.2 (104.9) Significant non-cash activities are as follows: • During fiscal 2023, fiscal 2022 and fiscal 2021, the Company executed finance lease transactions. The present value of the future rental obligations was $47.5 million, $35.8 million and $36.0 million for the respective periods, which is included in "Property and Equipment, at cost" and "Long-Term Borrowings" on the Consolidated Balance Sheets. |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS: Union Supply Group, Inc. On June 2, 2022, the Company completed the acquisition of Union Supply Group, Inc. ("Union Supply"), a commissary goods and services supplier, pursuant to the Stock Purchase Agreement ("Union Supply Purchase Agreement") dated as of April 8, 2022, by and among Aramark Correctional Services, LLC, a wholly owned subsidiary of the Company, and Tom Thomas, in his capacity as the sellers' representative. Upon completion of the acquisition, Union Supply became a wholly owned subsidiary of the Company and its results are included in the Company's FSS United States segment. The cash consideration paid for Union Supply was $199.6 million. The Union Supply Purchase Agreement provided for contingent consideration, which the Company may be required to pay if Union Supply achieves certain adjusted EBITDA levels during calendar year 2023. A contingent consideration liability of $40.2 million was recorded as part of the acquisition with a separate amount that will be accounted for as compensation expense to be recognized in earnings over the earnout period (see Note 16). The acquisition was financed utilizing funds from the Company's Receivables Facility. Consideration The Company accounted for the Union Supply 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. Recognition and Measurement of Assets Acquired and Liabilities Assumed at Fair Value The following table summarize the assets and liabilities assigned as of the acquisition date (in thousands): Current assets $ 102,925 Noncurrent assets 208,181 Total assets $ 311,106 Current liabilities $ 24,308 Noncurrent liabilities 87,171 Total liabilities $ 111,479 Intangible Assets The following table identifies the Company’s allocation 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 $ 82.3 15 Trade name 43.0 15 Total intangible assets $ 125.3 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 acquired was determined using the “relief-from-royalty method” which considers the discounted estimated royalty payments that are expected to be avoided as a result of the trademarks being owned. Goodwill The Company recorded $56.9 million of goodwill in connection with its purchase price allocation relating to the Union Supply acquisition, all of which was recognized in the FSS United States segment. Goodwill is calculated as the excess of consideration transferred over the net assets recognized and represents future economic benefits arising from other assets acquired that could not be individually identified and separately recognized, such as assembled workforce. Factors that contributed to the Company's recognition of goodwill include the Company's intent to complement its existing corrections business and expand its customer base. None of the goodwill recognized is expected to be deductible for income tax purposes. Next Level Hospitality On June 4, 2021, the Company completed the acquisition of Next Level Hospitality ("Next Level"), a premier provider of culinary and environmental services in the senior living industry, specializing in skilled nursing and rehabilitation facilities, pursuant to the Unit Purchase Agreement ("Next Level Purchase Agreement") dated as of April 28, 2021, by and among Aramark Healthcare Support Services, LLC, a wholly owned subsidiary of the Company, Aramark Services, Inc. ("ASI"), a wholly owned subsidiary of the Company, Next Level Hospitality Services, LLC, Next Level Stockholders and Seth Gribetz, in his capacity as Stockholder Representative. Next Level is a wholly owned subsidiary of the Company and its results are included in the Company's FSS United States segment. The cash consideration paid for Next Level was $226.1 million. In addition, contingent consideration of $78.4 million was recorded as part of the acquisition (see Note 16). The acquisition was financed utilizing cash and cash equivalents on hand. Consideration The Company accounted for the Next Level 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. Recognition and Measurement of Assets Acquired and Liabilities Assumed at Fair Value The following tables summarize the assets and liabilities assigned as of the acquisition date (in thousands): Current assets $ 18,088 Noncurrent assets 307,291 Total assets $ 325,379 Current liabilities $ 50,956 Noncurrent liabilities 48,323 Total liabilities $ 99,279 Intangible Assets The following table identifies the Company’s allocation 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 $ 133.0 15 Trade name 49.5 15 Total intangible assets $ 182.5 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 acquired was determined using the “relief-from-royalty method” which considers the discounted estimated royalty payments that are expected to be avoided as a result of the trademarks being owned. Goodwill The Company recorded $123.6 million of goodwill in connection with its purchase price allocation relating to the Next Level acquisition, all of which was recognized in the FSS United States reporting segment. Goodwill is calculated as the excess of consideration transferred over the net assets recognized and represents future economic benefits arising from other assets acquired that could not be individually identified and separately recognized, such as assembled workforce. Factors that contributed to the Company's recognition of goodwill include the Company's intent to complement its existing healthcare business and expand its customer base. Goodwill related to the Next Level acquisition is deductible for income tax purposes. Other Acquisitions During fiscal 2023, fiscal 2022 and fiscal 2021, the Company paid net cash consideration of $50.2 million, $140.4 million and $39.7 million, respectively, for various acquisitions, excluding the purchase of Union Supply and Next Level. The revenue, net income, assets and liabilities of the acquisitions did not have a material impact on the Company's consolidated financial statements. Merger and Integration Costs During fiscal 2021, the Company incurred merger and integration costs of $22.2 million, as a result of the AmeriPride acquisition that occurred during fiscal year 2018. The expenses mainly related to costs for transitional employees and integration related consulting costs and charges related to plant consolidations, mainly asset write-downs, the implementation of a new route accounting system and other expenses. |
Severance
Severance | 12 Months Ended |
Sep. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Severance | SEVERANCE: During fiscal 2023, the Company approved headcount reductions to streamline and improve the efficiency and effectiveness of operational and administrative functions. As a result of these actions, severance charges of $41.7 million were recorded in "Cost of services provided (exclusive of depreciation and amortization)" on the Consolidated Statements of Income (Loss) for the fiscal year ended September 29, 2023. The following table summarizes the severance charges by segment related to the fiscal 2023 actions recognized in the Consolidated Statements of Income (Loss) for the fiscal year ended September 29, 2023 (in millions): FSS United States $ 3.3 FSS International 31.2 Uniform 6.6 Corporate 0.6 $ 41.7 During fiscal 2022, the Company made changes to its organization to streamline and improve the efficiency and effectiveness of its operations and overhead functions within the FSS United States and FSS International segments. These actions included headcount reductions, which resulted in severance charges of $19.6 million during the fiscal year ended September 30, 2022, which were recorded in “Cost of services provided (exclusive of depreciation and amortization)” on the Consolidated Statements of Income (Loss). The following table summarizes the severance charges by segment related to the fiscal 2022 actions recognized in the Consolidated Statements of Income (Loss) for the fiscal year ended September 30, 2022 (in millions): FSS United States $ 7.7 FSS International 11.9 $ 19.6 During fiscal 2021, the Uniform segment approved action plans to streamline and improve the efficiency and effectiveness of the segment's general and administrative functions. Part of this action plan also included a series of facility consolidations and closures. As a result of these actions, severance charges of $9.0 million were recorded within “Cost of services provided (exclusive of depreciation and amortization)” on the Consolidated Statements of Income (Loss) for the fiscal year ended October 1, 2021. As of September 29, 2023, there are no unpaid obligations related to this severance program. During fiscal 2020, the Company made changes to its organization as a result of COVID-19. The Company reversed $16.3 million of unpaid obligations related to this severance obligation during fiscal 2021, which were recorded in both "Cost of services provided (exclusive of depreciation and amortization)" and "Selling and general corporate expenses" on the Consolidated Statements of Income (Loss). As of September 29, 2023, there are no unpaid obligations related to this severance program. The following table summarizes the unpaid obligations for severance and related costs as of September 29, 2023, which are included in "Accrued payroll and related expenses" on the Consolidated Balance Sheets (in millions): September 30, 2022 Charges (Reversals) Payments September 29, 2023 Fiscal 2022 Severance $ 16.8 $ (1.3) $ (14.7) $ 0.8 Fiscal 2023 Severance — 41.7 (20.4) 21.3 Total Reorganization $ 16.8 $ 40.4 $ (35.1) $ 22.1 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets | 12 Months Ended |
Sep. 29, 2023 | |
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, calculated using a discounted cash flow method or market based method, of each reporting unit with its estimated net book value. During the fourth quarter of fiscal 2023, 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 a discounted cash flow method of each reporting unit or market based method for certain reporting units with its book value. Based on the evaluation performed, the Company determined that the fair value of each of the reporting units significantly exceeded its respective carrying amount, and therefore, the Company determined that goodwill was not impaired. 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, 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 2023 are as follows (in thousands): Segment September 30, 2022 Acquisitions Translation & Other September 29, 2023 FSS United States $ 4,150,266 $ 14,120 $ 6 $ 4,164,392 FSS International 401,483 28,770 21,341 451,594 Uniform 963,375 — 168 963,543 $ 5,515,124 $ 42,890 $ 21,515 $ 5,579,529 Other intangible assets consist of (in thousands): September 29, 2023 September 30, 2022 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,500,640 $ (595,514) $ 905,126 $ 1,474,588 $ (487,877) $ 986,711 Trade names 1,154,048 (16,092) 1,137,956 1,133,736 (6,721) 1,127,015 $ 2,654,688 $ (611,606) $ 2,043,082 $ 2,608,324 $ (494,598) $ 2,113,726 During fiscal 2023, the Company acquired customer relationship assets and trade names with values of $20.7 million and $14.5 million, respectively. During fiscal 2022, the Company acquired customer relationship assets and trade names with values of $165.5 million and $56.3 million, respectively. Customer relationship assets are being amortized principally on a straight-line basis over the expected period of benefit with a weighted average life of approximately 14 years. The Aramark, Avendra and a majority of the other trade names are indefinite lived intangible assets and are not 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. The Company completed its annual trade name impairment test for fiscal 2023, which did not result in an impairment charge for the Aramark or Avendra trade name. Amortization of other intangible assets for fiscal 2023, fiscal 2022 and fiscal 2021 was $115.5 million, $108.7 million and $116.5 million, respectively. Based on the recorded balances at September 29, 2023, total estimated amortization of all acquisition-related intangible assets for fiscal years 2024 through 2028 are as follows (in thousands): 2024 $ 117,119 2025 117,231 2026 113,199 2027 104,559 2028 98,385 |
Borrowings
Borrowings | 12 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS: Long-term borrowings, net, are summarized in the following table (in thousands): September 29, 2023 September 30, 2022 Senior secured revolving credit facility, due April 2026 $ 170,759 $ 90,897 Senior secured term loan facility, due March 2025 — 1,661,611 Senior secured term loan facility, due April 2026 258,060 334,135 Senior secured term loan facility, due January 2027 835,631 834,619 Senior secured term loan facility, due April 2028 724,393 723,170 Senior secured term loan facility, due June 2030 1,078,588 — Uniform senior secured term loan facility, due September 2025 795,223 — Uniform senior secured term loan facility, due September 2028 693,720 — 5.000% senior notes, due April 2025 549,348 547,981 3.125% senior notes, due April 2025 (1) 342,718 317,204 6.375% senior notes, due May 2025 1,492,153 1,487,593 5.000% senior notes, due February 2028 1,142,910 1,141,491 Receivables Facility, due July 2026 — 104,935 Finance leases 164,810 147,373 Other 15,201 19,898 8,263,514 7,410,907 Less—current portion (1,596,942) (65,047) $ 6,666,572 $ 7,345,860 (1) This is a Euro denominated borrowing. See the disclosure below in the Senior Notes section for further information. As of September 29, 2023, there were $685.7 million of outstanding foreign currency borrowings. Senior Secured Credit Agreement ASI, an indirect wholly owned subsidiary of the Company, and certain of its subsidiaries entered into a credit agreement on March 28, 2017 (as supplemented or otherwise modified from time to time, the "Credit Agreement"), which replaced the existing Amended and Restated Credit Agreement, originally dated January 26, 2007, and last amended on March 28, 2014 (the "Previous Credit Agreement"). The Credit Agreement includes senior secured term loan facilities consisting of the following as of September 29, 2023: • A United States dollar denominated term loan to ASI in the amount of $835.6 million, due 2027 ("United States Term B-4 Loans due 2027"), $724.4 million, due 2028 ("United States Term B-5 Loans due 2028") and $1,078.6 million, due 2030 ("United States Term B-6 Loans due 2030"); • A Canadian dollar denominated term loan to Aramark Canada Ltd. in the amount of C$221.0 million (approximately $162.8 million), due 2026 (the "Canadian Term A-3 Loans due 2026"); and • A euro denominated term loan to Aramark Investments Limited, a U.K. borrower, in an amount of €90.2 million (approximately $95.3 million), of which €22.5 million (approximately $23.8 million) is due in calendar 2023 (the "Euro Term A-1 Loans due 2023") and the remainder is due in 2026 (the "Euro Term A-2 Loans due 2026"). The Euro Term A-1 Loans due 2023 was repaid in full as of October 2, 2023. The Credit Agreement also includes a revolving credit facility available for loans in United States dollars, Canadian dollars, euros and pounds sterling to ASI and certain foreign borrowers with aggregate commitments of approximately $1.2 billion and has a final maturity date of April 6, 2026. As of September 29, 2023, there was $953.8 million available for borrowing under the revolving credit facility. The Company's revolving credit facility includes a $250.0 million sublimit for letters of credit. The revolving credit facility may be drawn by ASI as well as by certain foreign subsidiaries of ASI. Each foreign borrower is subject to a sublimit of $150.0 million with respect to borrowings under the revolving credit facility. In addition to paying interest on outstanding principal under the senior secured credit facilities, the Company is required to pay a commitment fee to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. The revolving credit facility is subject to a commitment fee ranging from a rate of 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 United States Term B-4 Loans due 2027 is 1.75% with respect to Term Benchmark (Adjusted Term Secured Overnight Financing Rate ("SOFR")) borrowings, subject to a SOFR 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 on the United States Term B-5 Loans due 2028 and United States Term B-6 Loans due 2030 is 2.50% with respect to Term Benchmark (Adjusted Term SOFR) borrowings, subject to a SOFR floor of 0.00% and 1.50% with respect to base-rate borrowings, subject to a minimum base rate of 0.00%. The applicable margin spread for the Canadian Term A-3 Loans due 2026, the Euro Term A-1 Loans due 2023, the Euro Term A-2 Loans due 2026 and the senior secured revolving credit facility is 1.125% to 1.625% (as of September 29, 2023 - 1.625%) with respect to Term Benchmark (Adjusted Term SOFR) borrowings, bankers’ acceptance ("BA") rate borrowings and letters of credit fees, subject to a floor of 0.00%, and 0.125% to 0.625% (as of September 29, 2023 - 0.625%) with respect to United States and Canadian base rate borrowings, subject to a floor of 0.00%, and 1.1576% to 1.6576% (as of September 29, 2023 - 1.6576%) with respect to Sterling Overnight Index Average ("SONIA") 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 2023 Transactions On April 17, 2023, the Company repaid $468.0 million of the United States Term B-3 Loans due 2025, and ¥8,409.0 million ($63.0 million) of yen denominated term loans due 2026. On May 31, 2023, the Company repaid $100.0 million of United States Term B-3 Loans due 2025. On June 22, 2023, ASI and certain of its subsidiaries entered into Amendment No. 12 to the Credit Agreement, dated March 28, 2017, which provides for, among other things, the extension of the maturity date applicable to all of the United States Term B-3 Loans due 2025 through the establishment of the United States Term B-6 Loans due 2030 in an amount equal to approximately $1.1 billion. The new United States Term B-6 Loans due 2030 were funded in full on June 22, 2023 and were applied by the Company to refinance the remaining United States Term B-3 Loans due 2025. The new United States Term B-6 Loans due 2030 bear interest rate equal to either (a) a forward-looking term rate based on SOFR for the applicable interest period, plus a credit spread adjustment of (i) 0.11448% for borrowings with interest periods of one month, (ii) 0.26161% for borrowings with interest periods of three months and (iii) 0.42826% for borrowings with interest periods of six months (“Adjusted Term SOFR”) or (b) a base rate determined by reference to the highest of (1) the prime rate of the administrative agent, (2) the federal funds rate plus 0.50% and (3) the Adjusted Term SOFR plus 1.00% plus an applicable margin set initially at 2.50% for borrowings based on Adjusted Term SOFR and 1.50% for borrowings based on the base rate. The United States Term B-6 Loans due 2030 require the payment of installments in a quarterly principal amount of $2,750,000 from September 30, 2023 through March 31, 2030, and $1,025,750,000 at maturity. The United States Term B-6 Loans due 2030 are subject to substantially similar terms currently relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s other United States Term B Loans outstanding under the Credit Agreement. The Company capitalized $8.2 million of costs associated with the issuance of the United States Term B-6 Loans due 2030, which are amortized using the effective interest method over the term of the loans and presented on the Consolidated Balance Sheets as a direct deduction from the carrying value of the loans. Amounts paid for the capitalized third-party costs are included within "Other Financing activities" on the Consolidated Statements of Cash Flows for the fiscal year ended September 29, 2023. The Company also incurred an original issue discount of $11.0 million upon the issuance of the United States Term B-6 Loans due 2030. The discount is included as an adjustment to the carrying value of the loans and is amortized using the effective interest method over the term of loans in accordance with the accounting literature. In conjunction with Amendment No. 12 to the Credit Agreement and the borrowing repayments, the Company recorded a $2.5 million non-cash loss for the write-off of unamortized deferred debt issuance costs to "Interest and Other Financing Costs, net" on the Consolidated Statements of Income (Loss) during the fiscal year ended September 29, 2023. On June 29, 2023, ASI entered into Amendment No. 13 to the Credit Agreement, dated March 28, 2017, which provides for a transition of the underlying interest rate applicable to all term loans outstanding and revolving credit commitments and loans available and/or outstanding, in each case, under the Credit Agreement, from a LIBOR-based rate to a forward-looking term rate based on SOFR. All borrowings based on SOFR under the Credit Agreement are subject to a credit spread adjustment of (i) 0.11448% for borrowings with interest periods of one month, (ii) 0.26161% for borrowings with interest periods of three months and (iii) 0.42826% for borrowings with interest periods of six months but the associated interest rate margins applicable to all such borrowings remain unchanged. Amendment No. 13 was entered into in preparation for the general cessation of LIBOR-based borrowings in the leverage lending industry as of June 30, 2023. Fiscal 2021 Transactions On April 6, 2021, the Company entered into Amendment No. 11 to the Credit Agreement. Amendment No. 11 provided for, among other things, the extension of the maturity date, in each case, applicable to a portion of the revolving credit facility (the "2018 Tranche Revolving Facility"), a portion of the Canadian dollar denominated term loan due October 2023 (the "Canadian Term A-2 Loans due 2023"), a portion of the Euro Term A-1 Loans due 2023, all of the Yen Term C-1 Loans due 2023 and all of the United States dollar denominated term loan due 2024 (the "United States Term B-2 Loans due 2024") and an increase of $200.0 million in commitments available under the 2018 Tranche Revolving Facility, in each case, under the Credit Agreement through the establishment of Replacement Revolving Commitments (as defined in the Credit Agreement), New Revolving Commitments (as defined in the Credit Agreement), borrowings of Extended Term Loans (as defined in the Credit Agreement) and borrowings of Refinancing Term Loans (as defined in the Credit Agreement), as applicable, under the Credit Agreement comprised of (i) in the case of the portion of the 2018 Tranche Revolving Facility which was extended, new 2021 Tranche Revolving Commitments (the "New 2021 Tranche Revolving Commitments") in an amount equal to $1,153.1 million, terminating in April 2026, (ii) in the case of the portion of the Canadian Term A-2 Loans due 2023 which was extended, the Canadian Term A-3 Loans due 2026 in an amount equal to C$276.9 million, due in April 2026, (iii) in the case of the portion of the Euro Term A-1 Loans due 2023 which was extended, the Euro Term A-2 Loans due 2026 in an amount equal to €78.8 million, due in April 2026, (iv) in the case of the Yen Term C-1 Loans due 2023, the Yen Term C-2 Loans due 2026 in an amount equal to ¥9,343.3 million, due in April 2026 and (v) in the case of the United States Term B-2 Loans due 2024, the United States Term B-5 Loans due 2028 in an amount equal to $833.0 million, due in April 2028. The Canadian Term A-3 Loans due 2026, Euro Term A-2 Loans due 2026, Yen Term C-2 Loans due 2026 and United States Term B-5 Loans due 2028 were funded in full on April 6, 2021 and were applied by the Company to refinance in part the Canadian Term A-2 Loans due 2023 and Euro Term A-1 Loans due 2023 and to refinance in full the Yen Term C-1 Loans due 2023 and United States Term B-2 Loans due 2024, in each case, previously outstanding under the Credit Agreement. As of April 6, 2021 and after giving effect to Amendment No. 11, $53.7 million of 2018 Tranche Revolving Commitments, €33.6 million of Euro Term A-1 Loans due 2023 and C$27.1 million of Canadian Term A-2 Loans due 2023 were outstanding under the Credit Agreement, as amended by Amendment No. 11, in each case due in October 2023 (which date is unchanged from the previous maturity date). The Canadian Term A-2 Loans due 2023 were repaid in full as of October 1, 2021. The New 2021 Tranche Revolving Commitments are subject to substantially similar terms currently relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s existing 2018 Tranche Revolving Facility outstanding under the Credit Agreement. For the avoidance of doubt, the remaining 2018 Revolving Tranche Commitments shall be available only in United States dollars and shall bear interest and accrue unused fees at rates consistent with the 2021 Tranche Revolving Facility. The Canadian Term A-3 Loans due 2026 are subject to substantially similar terms currently relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s Canadian Term A-2 Loans due 2023 under the Credit Agreement. Amortization payments in respect of the remaining Canadian Term A-2 Loans due 2023 have been reduced on a pro rata basis to reflect the partial refinancing thereof. The Euro Term A-2 Loans due 2026 are subject to substantially similar terms currently relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s existing Euro Term A-1 Loans due 2023 outstanding under the Credit Agreement. Amortization payments in respect of the remaining Euro Term A-1 Loans have been reduced on a pro rata basis to reflect the partial refinancing thereof. The United States Term B-5 Loans due 2028 are subject to substantially similar terms currently relating to guarantees, collateral, mandatory prepayments and covenants that are applicable to the Company’s existing United States Term B Loans outstanding under the Credit Agreement. The Company capitalized third-party costs of $16.8 million related to banker fees, rating agency fees and legal fees directly attributable to the refinancings in Amendment No. 11, which are included in "Long-Term Borrowings" and "Other Assets" on the Consolidated Balance Sheets. Amounts paid for the capitalized third-party costs are included within "Other Financing activities" on the Consolidated Statements of Cash Flows for the fiscal year ended October 1, 2021. Additionally the Company recorded a $2.7 million non-cash loss for the write-off of unamortized deferred financing costs on the revolving credit facility and United States Term B-2 Loans due 2024 to "Interest and Other Financing Costs, net" in the Consolidated Statements of Income (Loss) for the fiscal year ended October 1, 2021. The Company made optional prepayments of $194.1 million of outstanding United States dollar and Canadian dollar term loans during fiscal 2021. 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 customary "breakage" costs with respect to LIBOR loans. Prepaid term loans may not be reborrowed. If a change of control as defined in the Credit Agreement occurs, this will cause an event of default under the Credit Agreement. Upon an event of default, the new senior secured credit facilities may be accelerated, in which case the Company would be required to repay all outstanding loans plus accrued and unpaid interest and all other amounts outstanding under the new senior secured credit facilities under the Credit Agreement. The Canadian Term A-3 Loans due 2026 require the payment of installments in quarterly principal amounts of C$6.9 million from September 30, 2024 through March 31, 2025, C$10.4 million from June 30, 2025 through March 31, 2026 and C$159.2 million at maturity. The Euro Term A-2 Loans due 2026 require the payment of installments in quarterly principal amounts of €1.5 million from December 30, 2023 through March 31, 2024, €2.0 million from June 30, 2024 through March 31, 2025, €3.0 million from June 30, 2025 through March 31, 2026 and €45.3 million at maturity. The United States Term B-5 Loans due 2028 require the payment of $730.5 million 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 United States 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 United States Guarantors and (iii) a security interest in, and mortgages on, substantially all tangible assets of Aramark Intermediate HoldCo Corporation, ASI or any of the United States Guarantors. Certain Covenants The Credit Agreement contains a number of 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 amounts 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 September 29, 2023, 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, not to exceed 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 sheets 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 United States Term B-4 Loans due 2027, United States Term B-5 Loans due 2028 and United States Term B-6 Loans due 2030 which lenders shall not benefit from the maximum Consolidated Secured Debt Ratio) failed to waive any such default, would also constitute a default under the indentures governing the senior notes. The actual ratio at September 29, 2023 was 1.76x. 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 at least 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 3.63x for the fiscal year ended September 29, 2023. 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. Uniform Credit Agreement On September 29, 2023, the Uniform segment and certain of its subsidiaries entered into a credit agreement ("Uniform Credit Agreement") in anticipation of the separation and distribution of the Uniform segment, including senior secured term loan facilities consisting of the following as of September 29, 2023: • A United States dollar denominated term loan to the Uniform segment in the amount of $800.0 million, due September 2025 ("United States Term A-1 Loans due September 2025"); and • A United States dollar denominated term loan to the Uniform segment in the amount of $700.0 million, due September 2028 ("United States Term A-2 Loans due September 2028"). The United States Term A-2 Loans require the payment of installments in quarterly principal amounts of $8.8 million through June 30, 2028 and $533.8 million at maturity. The Uniform Credit Agreement also includes a revolving credit facility available for loans in United States dollars and Canadian dollars with aggregate commitments of $300.0 million as of September 29, 2023. As of September 29, 2023, there were no borrowings under the revolving credit facility. The revolving credit facility includes a $50.0 million sublimit for swingline loans and a $30.0 million sublimit for letters of credit. The revolving credit facility may be drawn by the Uniform segment as well as by certain foreign subsidiaries. Each foreign borrower is subject to a sublimit of $100.0 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 Uniform segment is required to pay a commitment fee to the lenders under the revolving credit facility in respect of the unutilized commitments thereunder. The revolving credit facility is subject to a commitment fee ranging from a rate of 0.20% to 0.30% per annum. The actual rate within the range is based on a Consolidated Total Net Leverage Ratio, as defined in the Uniform Credit Agreement. The applicable margin on the United States Term A-1 Loans due September 2025 and the United States Term A-2 Loans due September 2028 for fiscal 2024 is 2.25% with respect to SOFR borrowings, subject to a floor of 0.00%. The applicable margin on the United States Term A-1 Loans due September 2025 and the United States Term A-2 Loans due September 2028 for fiscal 2025 and thereafter ranges from 1.50% to 2.50% based on the Consolidated Total Net Leverage Ratio, as defined in the Uniform Credit Agreement. The effective interest rate for the United States Term A-1 Loans due September 2025 and the United States Term A-2 Loans due September 2028 was 7.74%. The Uniform Credit Agreement may be prepaid at any time. The Uniform Credit Agreement requires the Uniform segment to prepay outstanding term loans, subject to certain exceptions, with: • 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 the greater of (a) $30.0 million and (b) 7.5% of Covenant Adjusted EBITDA; • 100% of the net cash proceeds of all casualty events with respect to any equipment, fixed assets, or real property; provided, further, that such prepayment shall only be required to the extent proceeds related to the event in excess of $10.0 million are not reinvested within the reinvestment period; and • 100% of the net cash proceeds of any incurrence of debt, but excluding proceeds from certain debt permitted under the Uniform Credit Agreement. All obligations under the Uniform Credit agreement are unconditionally guaranteed by the Uniform segment and, subject to certain exceptions, substantially all of the Uniform segment's existing and future wholly-owned domestic subsidiaries. All obligations under the Uniform Credit Agreement, and the guarantees of those obligations, are secured by (i) pledges of 100% of the capital stock of the Uniform segment's domestic subsidiaries, (ii) pledges of 65% of the capital stock of the Uniform segment's foreign subsidiaries, and (iii) a security interest in, and mortgages on, substantially all tangible assets of the Uniform segment or any of the guarantors. The Uniform Credit Agreement contains a number of covenants that, among other things, restrict, subject to certain exceptions, the Uniform segment'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 or dispose of assets; pay dividends, make distributions or repurchase its capital stock; engage in certain transactions with affiliates; make investments, loans or advances; create restrictions on the payment of dividends or other amounts to the Uniform segment from its restricted subsidiaries; amend material agreements governing the Uniform segment's subordinated debt; repay or repurchase any subordinated debt, except as scheduled or at maturity; make certain acquisitions; change the Uniform segment's fiscal year; and fundamentally change the Uniform segment’s business. The Uniform Credit Agreement also contains certain customary affirmative covenants, such as financial and other reporting, and certain events of default. The Uniform Credit Agreement requires the Uniform segment to maintain a maximum Consolidated Total Net Leverage Ratio, defined as consolidated total indebtedness over unrestricted cash divided by Covenant Adjusted EBITDA, not to exceed 5.25x for any fiscal quarter ending prior to March 31, 2025, and not to exceed 4.50x for any fiscal quarter ending on or after March 31, 2025, subject to certain exceptions. Consolidated total indebtedness is defined in the Uniform Credit Agreement as total indebtedness consisting of debt for borrowed money, finance leases, disqualified and preferred stock and advances under any Receivables Facility. Covenant Adjusted EBITDA is defined in the Uniform Credit Agreement as consolidated net income increased by interest expense, taxes, depreciation and amortization expense, initial public company costs, restructuring charges, write-offs and noncash charges, non-controlling interest expense, net cost savings in connection with any acquisition, disposition, or other permitted investment under the Uniform Credit Agreement, share-based compensation expense, non-recurring or unusual gains and losses, reimbursable insurance costs, cash expenses related to earn outs, and insured losses. The Uniform Credit Agreement establishes a minimum Interest Coverage Ratio, defined as Covenant Adjusted EBITDA divided by consolidated interest expense. The minimum Interest Coverage Ratio is required to be at least 2.00x for the term of the Uniform Credit Agreement. At September 29, 2023, the Company was in compliance with all covenants under the Uniform Credit Agreement. The Company capitalized $11.1 million of costs associated with the issuance of the United States Term A-1 Loans due September 2025 and United States Term A-2 Loans due September 2028, which are amortized using the effective interest method over the term of the loans and presented on the Consolidated Balance Sheets as a direct deduction from the carrying value of the loans. Amounts paid for the capitalized third-party costs are included within "Other Financing activities" on the Consolidated Statements of Cash Flows for the fiscal year ended September 29, 2023. The Uniform credit agreement, which includes the revolving credit facility, $800.0 million United States Term A-1 Loans due September 2025 and $700.0 million United States Term A-2 Loans due September 2028 will be removed from the Company’s Consolidated Balance Sheets as a result of the separation and distribution of the Uniform segment on September 30, 2023. 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"). The Company capitalized upon issuance third-party costs of $22.3 million directly attributable to the 6.375% 2025 Notes. 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 exte |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Sep. 29, 2023 | |
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 and exposure to fluctuating gasoline and diesel fuel prices. Derivative instruments utilized during the period include interest rate swap agreements 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 $2.2 billion notional amount of outstanding interest rate swap agreements as of September 29, 2023, which fix the rate on a like amount of variable rate borrowings with varying maturities through December of fiscal 2028. During fiscal 2023, the Company entered into $150.0 million notional amount of interest rate swap agreements to hedge the cash flow risk of variability in interest payments on variable rate borrowings and $1.2 billion notional amount of previously forward starting interest rate swap agreements became effective. In addition, interest rate swaps with notional amounts of $1.6 billion matured during fiscal 2023 . During fiscal 2023, the Company entered into bilateral agreements with its swap counterparties to transition all of its interest rate swap agreements to use SOFR as the reference rate in anticipation of the discontinuance of LIBOR. There are no changes to interest rate swap parties, notional amounts or settlement dates as a result of these amendments. As of September 29, 2023, all of the Company's interest rate swap agreements were indexed to SOFR. 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 loss and reclassified into earnings as the underlying hedged item affects earnings. Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. Cash flows from hedging transactions are classified in the same category as the cash flows from the respective hedged item. As of September 29, 2023 and September 30, 2022 , $109.1 million and $114.7 million, respectively, of unrealized net of tax gains 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 (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Interest rate swap agreements (1) $ 51,541 $ 193,616 $ 1,228 (1) Change in the amounts driven by changes in forward interest rates. Derivatives not Designated in Hedging Relationships The Company entered into a series of pay fixed/receive floating gasoline and diesel fuel agreements based on the Department of Energy weekly retail on-highway index in order to limit its exposure to price fluctuations for gasoline and diesel fuel. As of September 29, 2023 , the Company has contracts for approximately 6.6 million gallons outstanding through June of fiscal 2024. The majority of these gasoline and diesel fuel agreements support the Uniform segment with the remaining agreements supporting the FSS United States segment, whereas the impact will be immaterial following the separation and distribution of the Uniform segment subsequent to fiscal year-end (see Note 1). The Company does not record its gasoline and diesel fuel agreements as hedges for accounting purposes. The impact on earnings related to the change in fair value of these unsettled contracts was a gain of $2.6 million for fiscal 2023, a loss of $5.2 million for fiscal 2022 and a gain of $4.4 million for fiscal 2021. The change in fair value for unsettled contracts is included in "Selling and general corporate expenses" on the Consolidated Statements of Income (Loss). When the contracts settle, the gain or loss is recorded in "Cost of services provided (exclusive of depreciation and amortization)" on the Consolidated Statements of Income (Loss). The following table summarizes the location and fair value, using Level 2 inputs (see Note 16 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments on the Consolidated Balance Sheets (in thousands): Balance Sheet Location September 29, 2023 September 30, 2022 ASSETS Designated as hedging instruments: Interest rate swap agreements Prepayments and other current assets $ — $ 5,278 Interest rate swap agreements Other Assets 147,458 149,755 $ 147,458 $ 155,033 LIABILITIES Not designated as hedging instruments: Gasoline and diesel fuel agreements Accounts Payable $ 1 $ 2,631 $ 1 $ 2,631 The following table summarizes the location of the (gain) loss reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments and the location of the loss (gain) for the Company's derivatives not designated as hedging instruments on the Consolidated Statements of Income (Loss) (in thousands): Fiscal Year Ended Income Statement Location September 29, 2023 September 30, 2022 October 1, 2021 Designated as hedging instruments: Interest rate swap agreements (1) Interest and Other Financing Costs, net $ (59,117) $ 27,970 $ 50,595 Not designated as hedging instruments: Gasoline and diesel fuel agreements Cost of services provided (exclusive of depreciation and amortization)/ Selling and general corporate expenses 314 (3,203) (8,044) $ (58,803) $ 24,767 $ 42,551 (1) Change in the amounts driven by changes in forward interest rates. As of September 29, 2023, the Company has a Euro denominated term loan in the amount of €90.2 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 September 29, 2023 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Sep. 29, 2023 | |
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 September 29, 2023 September 30, 2022 October 1, 2021 (1) FSS United States: Business & Industry $ 1,407.2 $ 1,081.2 $ 695.7 Education 3,437.0 3,161.5 2,124.4 Healthcare 1,318.3 1,235.8 891.2 Sports, Leisure & Corrections 3,537.1 2,722.0 1,511.3 Facilities & Other 2,021.8 1,830.3 1,586.7 Total FSS United States 11,721.4 10,030.8 6,809.3 FSS International: Europe 2,303.6 1,853.3 1,347.5 Rest of World 2,058.2 1,803.1 1,518.7 Total FSS International 4,361.8 3,656.4 2,866.2 Uniform 2,770.7 2,639.4 2,420.5 Total Revenue $ 18,853.9 $ 16,326.6 $ 12,096.0 (1) COVID-19 had a negative impact on revenue for the fiscal year ended October 1, 2021 (see Note 1). 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 8.1 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 on a straight-line basis 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 September 29, 2023 and September 30, 2022, the Company had $775.1 million and $751.8 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. Long-term prepaid rent is recorded within "Operating Lease Right-of use Assets" on the Consolidated Balance Sheets (see Note 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 to four years. The amortization rates used are based on the Company's specific experience. 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 on the Consolidated Statements of Income (Loss) related to the Company's contract balances (in millions): Fiscal Year Ended Income Statement Location September 29, 2023 September 30, 2022 October 1, 2021 Employee sales commissions Cost of services provided (exclusive of depreciation and amortization) $ 28.6 $ 26.3 $ 23.9 Leasehold improvements Depreciation and amortization 129.8 123.9 131.6 Cost to fulfill - Client Depreciation and amortization 17.7 19.5 20.0 Long-term prepaid rent Cost of services provided (exclusive of depreciation and amortization) 47.5 34.8 25.3 Cost to fulfill - Rental merchandise in-service Cost of services provided (exclusive of depreciation and amortization) 343.9 288.5 274.5 Deferred income is recognized in "Accrued expenses and other current liabilities" and "Deferred Income Taxes and Other Noncurrent 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, which are 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 if the deferred income is expected to be recognized in the next 12 months or as noncurrent if the deferred income is expected to be recognized in excess of the next 12 months. If the Company cannot render its performance obligation according to contract terms after receiving the consideration in advance, amounts may be contractually required to be refunded to the customer. During the fiscal year ended September 29, 2023, 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 September 29, 2023, the Company recognized $298.9 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): September 29, 2023 September 30, 2022 Deferred income $ 356.1 $ 324.5 |
Leases
Leases | 12 Months Ended |
Sep. 29, 2023 | |
Leases [Abstract] | |
Leases | LEASES: The Company has lease arrangements primarily related to real estate, vehicles and equipment, which generally have terms of one one The Company recognizes operating lease liabilities and 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. The Company has lease agreements with lease and non-lease components. Non-lease components are combined with the related lease components and accounted for as lease components for all classes of underlying assets. 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. 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 primarily 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 (in thousands), as well as the weighted average remaining lease term and weighted average discount rate: Leases Balance Sheet Location September 29, 2023 September 30, 2022 Assets: Operating (1)(2) Operating Lease Right-of-use Assets $ 630,158 $ 592,145 Finance Property and Equipment, net 152,551 137,550 Total lease assets $ 782,709 $ 729,695 Liabilities: Current Operating Current operating lease liabilities $ 71,206 $ 68,858 Finance Current maturities of long-term borrowings 31,412 27,430 Noncurrent Operating Noncurrent Operating Lease Liabilities 291,955 305,623 Finance Long-term borrowings 133,398 119,943 Total lease liabilities $ 527,971 $ 521,854 Weighted average remaining lease term (in years) Operating leases 7.1 7.7 Finance leases 7.4 7.7 Weighted average discount rate Operating leases 4.3 % 3.7 % Finance leases 4.4 % 4.0 % (1) Includes $320.1 million and $260.2 million of long-term prepaid rent as of September 29, 2023 and September 30, 2022, respectively. (2) During fiscal 2023, the Company recorded impairment charges to its Operating Lease Right-of-use Assets (see Note 1). The following table summarizes the location of lease related costs on the Consolidated Statements of Income (Loss) (in thousands): Fiscal Year Ended Lease Cost Income Statement Location September 29, 2023 September 30, 2022 October 1, 2021 Operating lease cost (1) : Fixed lease costs Cost of services provided (exclusive of depreciation and amortization) $ 133,510 $ 122,607 $ 116,934 Variable lease costs (2) Cost of services provided (exclusive of depreciation and amortization) 932,225 774,437 344,130 Short-term lease costs Cost of services provided (exclusive of depreciation and amortization) 87,962 71,726 48,288 Finance lease cost (3) : Amortization of right-of-use-assets Depreciation and amortization 34,745 32,702 31,243 Interest on lease liabilities Interest and Other Financing Costs, net 5,666 4,499 4,794 Net lease cost $ 1,194,108 $ 1,005,971 $ 545,389 (1) Excludes sublease income, which is immaterial. (2) Includes $903.4 million, $745.6 million and $325.3 million of costs related to leases associated with revenue contracts with customers for fiscal 2023, 2022 and 2021, respectively. 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 2021 was impacted by COVID-19. (3) Excludes variable lease costs, which are immaterial. Supplemental cash flow information related to leases for the periods reported is as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 194,663 $ 135,936 $ 189,061 Operating cash flows from finance leases 5,666 4,499 4,794 Financing cash flows from finance leases 31,808 31,289 32,496 Lease assets obtained in exchange for lease obligations: Operating leases $ 64,857 $ 82,635 $ 61,345 Finance leases 47,488 35,839 36,046 (1) For fiscal 2023, excludes cash paid for variable and short-term lease costs of $919.0 million and $88.0 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2022, excludes cash paid for variable and short-term lease costs of $734.2 million and $71.7 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2021, excludes cash paid for variable and short-term lease costs of $304.5 million and $48.3 million, respectively, that are not included within the measurement of lease liabilities. Future minimum lease payments under non-cancelable leases as of September 29, 2023 are as follows (in thousands): Operating leases Finance leases Total 2024 $ 85,073 $ 37,366 $ 122,439 2025 71,165 33,906 105,071 2026 58,165 29,310 87,475 2027 45,612 24,039 69,651 2028 37,319 19,300 56,619 Thereafter 125,028 49,400 174,428 Total future minimum lease payments $ 422,362 $ 193,321 $ 615,683 Less: Interest (59,201) (28,511) (87,712) Present value of lease liabilities $ 363,161 $ 164,810 $ 527,971 |
Leases | LEASES: The Company has lease arrangements primarily related to real estate, vehicles and equipment, which generally have terms of one one The Company recognizes operating lease liabilities and 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. The Company has lease agreements with lease and non-lease components. Non-lease components are combined with the related lease components and accounted for as lease components for all classes of underlying assets. 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. 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 primarily 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 (in thousands), as well as the weighted average remaining lease term and weighted average discount rate: Leases Balance Sheet Location September 29, 2023 September 30, 2022 Assets: Operating (1)(2) Operating Lease Right-of-use Assets $ 630,158 $ 592,145 Finance Property and Equipment, net 152,551 137,550 Total lease assets $ 782,709 $ 729,695 Liabilities: Current Operating Current operating lease liabilities $ 71,206 $ 68,858 Finance Current maturities of long-term borrowings 31,412 27,430 Noncurrent Operating Noncurrent Operating Lease Liabilities 291,955 305,623 Finance Long-term borrowings 133,398 119,943 Total lease liabilities $ 527,971 $ 521,854 Weighted average remaining lease term (in years) Operating leases 7.1 7.7 Finance leases 7.4 7.7 Weighted average discount rate Operating leases 4.3 % 3.7 % Finance leases 4.4 % 4.0 % (1) Includes $320.1 million and $260.2 million of long-term prepaid rent as of September 29, 2023 and September 30, 2022, respectively. (2) During fiscal 2023, the Company recorded impairment charges to its Operating Lease Right-of-use Assets (see Note 1). The following table summarizes the location of lease related costs on the Consolidated Statements of Income (Loss) (in thousands): Fiscal Year Ended Lease Cost Income Statement Location September 29, 2023 September 30, 2022 October 1, 2021 Operating lease cost (1) : Fixed lease costs Cost of services provided (exclusive of depreciation and amortization) $ 133,510 $ 122,607 $ 116,934 Variable lease costs (2) Cost of services provided (exclusive of depreciation and amortization) 932,225 774,437 344,130 Short-term lease costs Cost of services provided (exclusive of depreciation and amortization) 87,962 71,726 48,288 Finance lease cost (3) : Amortization of right-of-use-assets Depreciation and amortization 34,745 32,702 31,243 Interest on lease liabilities Interest and Other Financing Costs, net 5,666 4,499 4,794 Net lease cost $ 1,194,108 $ 1,005,971 $ 545,389 (1) Excludes sublease income, which is immaterial. (2) Includes $903.4 million, $745.6 million and $325.3 million of costs related to leases associated with revenue contracts with customers for fiscal 2023, 2022 and 2021, respectively. 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 2021 was impacted by COVID-19. (3) Excludes variable lease costs, which are immaterial. Supplemental cash flow information related to leases for the periods reported is as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 194,663 $ 135,936 $ 189,061 Operating cash flows from finance leases 5,666 4,499 4,794 Financing cash flows from finance leases 31,808 31,289 32,496 Lease assets obtained in exchange for lease obligations: Operating leases $ 64,857 $ 82,635 $ 61,345 Finance leases 47,488 35,839 36,046 (1) For fiscal 2023, excludes cash paid for variable and short-term lease costs of $919.0 million and $88.0 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2022, excludes cash paid for variable and short-term lease costs of $734.2 million and $71.7 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2021, excludes cash paid for variable and short-term lease costs of $304.5 million and $48.3 million, respectively, that are not included within the measurement of lease liabilities. Future minimum lease payments under non-cancelable leases as of September 29, 2023 are as follows (in thousands): Operating leases Finance leases Total 2024 $ 85,073 $ 37,366 $ 122,439 2025 71,165 33,906 105,071 2026 58,165 29,310 87,475 2027 45,612 24,039 69,651 2028 37,319 19,300 56,619 Thereafter 125,028 49,400 174,428 Total future minimum lease payments $ 422,362 $ 193,321 $ 615,683 Less: Interest (59,201) (28,511) (87,712) Present value of lease liabilities $ 363,161 $ 164,810 $ 527,971 |
Employee Pension and Profit Sha
Employee Pension and Profit Sharing Plans | 12 Months Ended |
Sep. 29, 2023 | |
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 2023 , fiscal 2022 and fiscal 2021 was $30.3 million, $28.6 million and $28.1 million, respectively. 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 2023, fiscal 2022 and fiscal 2021 was $15.3 million, $15.1 million and $15.2 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 2023, fiscal 2022 and fiscal 2021 (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Service cost $ 840 $ 1,045 $ 1,327 Interest cost 6,521 3,887 4,736 Expected return on plan assets (8,271) (9,915) (14,003) Settlements and curtailments (1) — — 61,706 Amortization of prior service cost 26 27 32 Recognized net loss 446 4,574 3,829 Net periodic pension (income) expense $ (438) $ (382) $ 57,627 (1) During fiscal 2021, the Company terminated certain Canadian single-employer defined benefit pension plans and recognized a non-cash loss of $60.9 million on the Consolidated Statements of Income (Loss). 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 plan assets: September 29, 2023 September 30, 2022 Fair value of plan assets, beginning $ 161,504 $ 239,013 Foreign currency translation 10,991 (29,381) Employer contributions 1,184 5,710 Employee contributions 47 88 Actual return on plan assets (7,021) (30,650) Benefits paid (8,895) (23,276) Fair value of plan assets, end $ 157,810 $ 161,504 Change in benefit obligation: Benefit obligation, beginning $ 122,628 $ 220,950 Foreign currency translation 7,492 (22,871) Service cost 840 1,045 Interest cost 6,521 3,887 Employee contributions 47 88 Actuarial gain (8,162) (57,195) Benefits paid (8,895) (23,276) Benefit obligation, ending 120,471 122,628 Funded Status at end of year $ 37,339 $ 38,876 Amounts recognized on the Consolidated Balance Sheets consist of the following (in thousands): September 29, 2023 September 30, 2022 Noncurrent benefit asset (included in Other Assets) $ 45,443 $ 47,436 Noncurrent benefit liability (included in Other Noncurrent Liabilities) (8,104) (8,560) Net actuarial loss (included in Accumulated other comprehensive loss before taxes) 28,352 20,411 The following weighted average assumptions were used to determine pension expense of the respective fiscal years: September 29, 2023 September 30, 2022 Discount rate 5.1 % 2.1 % Rate of compensation increase 0.5 % 2.2 % Long-term rate of return on assets 5.2 % 4.8 % The following weighted average assumptions were used to determine the funded status of the respective fiscal years: September 29, 2023 September 30, 2022 Discount rate 5.4 % 4.9 % Rate of compensation increase 0.6 % 2.0 % Assumptions, including discount rate, expected return on assets, compensation increases and health care trends, are adjusted annually, as necessary, based on prevailing market conditions and actual experience. The Company applies a spot-rate approach for the discount rate used in the calculation of pension interest and service cost. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation. The accumulated benefit obligation as of September 29, 2023 was $120.5 million. During fiscal 2023, actuarial losses of $7.1 million were recognized in other comprehensive income (before taxes) and $0.4 million of actuarial losses were recognized as net periodic pension cost during such period. The accumulated benefit obligation as of September 30, 2022 was $122.5 million. During fiscal 2022 , actuarial gains of $14.6 million were recognized in other comprehensive income (before taxes) and $4.6 million of actuarial losses were recognized as net periodic pension cost during such period. The following table sets forth information for the Company's single-employer pension plans with an accumulated benefit obligation in excess of plan assets as of September 29, 2023 and September 30, 2022 (in thousands): September 29, 2023 September 30, 2022 Projected benefit obligation $ 8,104 $ 8,560 Accumulated benefit obligation 8,104 8,560 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 has shifted 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 5-15% invested in equity securities, 75-95% invested in debt securities and 0-10% in real estate investments and cash and cash equivalents. Performance of the plans is monitored on a regular basis and adjustments of the asset allocations are made when deemed necessary. The weighted-average long-term rate of return on assets has been determined based on an estimated weighted-average of long-term returns of major asset classes, taking into account historical performance of plan assets, the current interest rate environment, plan demographics, acceptable risk levels and the estimated value of active asset management. The fair value of plan assets for the Company's defined benefit pension plans as of September 29, 2023 and September 30, 2022 is as follows (see Note 16 for a description of the fair value levels) (in thousands): September 29, 2023 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Cash and cash equivalents $ 14,017 $ 14,017 $ — $ — Equity securities: Investment trusts 1,591 1,591 — — Investment funds: Equity funds 14,374 — 14,374 — Fixed income funds 126,899 — 126,899 — Real estate 929 — — 929 Total $ 157,810 $ 15,608 $ 141,273 $ 929 September 30, 2022 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Cash and cash equivalents $ 6,746 $ 6,746 $ — $ — Equity securities: Investment trusts 1,641 1,641 — — Investment funds: Equity funds 67,035 — 67,035 — Fixed income funds 76,275 — 76,275 — Real estate 9,807 — — 9,807 Total $ 161,504 $ 8,387 $ 143,310 $ 9,807 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 international companies 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. 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 2024 $ 6,589 Fiscal 2025 6,859 Fiscal 2026 6,855 Fiscal 2027 6,962 Fiscal 2028 7,560 Fiscal 2029 – 2033 41,709 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 2024 are approximately $1.0 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 2023 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 2023 and 2022 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 and plans in the critical zone are generally less than 65% 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 2023, fiscal 2022 and fiscal 2021 contributions. Pension EIN/Pension Pension Protection FIP/RP Status Pending/ Implemented Contributions by the Company Range of Expiration Dates of CBAs 2023 2022 2023 2022 2021 Surcharge National Retirement Fund 13-6130178/ 001 Critical Critical Implemented $ 3,994 $ 3,434 $ 2,579 No 8/4/2023 - 8/28/2026 UNITE HERE Retirement Fund 82-0994119/ 001 Critical and Declining Critical and Declining Implemented 6,379 5,483 2,699 No 12/31/2022 - 1/1/2026 Local 1102 Retirement Trust 13-1847329/ 001 Critical and Declining Critical and Declining Implemented 65 33 22 No 9/30/2024 Central States SE and SW Areas Pension Plan 36-6044243/ 001 Critical Critical and Declining Implemented 4,439 4,167 3,994 No 3/8/2024 - 9/22/2028 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 23-2627428/ 001 Critical and Declining Critical Implemented 333 353 354 No 1/31/2023 SEIU National Industry Pension Fund (1) 52-6148540/ 001 Critical Critical Implemented 230 795 750 No 3/31/2021 - 6/30/2025 Retail Wholesale & Department Store International Union and Industry Pension Fund 63-0708442/ 001 Critical and Declining Critical and Declining Implemented 466 462 510 No 7/5/2023 - 5/31/2027 Other funds 17,617 16,113 15,995 Total contributions $ 33,523 $ 30,840 $ 26,903 (1) Approximately 50% of the Company's participants in this fund are covered by a single CBA that expires on 4/14/2025. 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 12/31/2022, 12/31/2021 and 12/31/2020 National Retirement Fund 12/31/2022 and 12/31/2020 Retail Wholesale & Department Store International Union and Industry Pension Fund 12/31/2022, 12/31/2021 and 12/31/2020 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 12/31/2022 At the date the Company's financial statements were issued, Forms 5500 were not available for the plan years ending in fiscal 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES:The Company accounts for income taxes using the asset and liability method. Under this method, the Provision (Benefit) 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 Income (Loss) Before Income Taxes by source of income (loss) are as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 United States $ 391,460 $ 142,507 $ (147,735) Non-United States (1) 459,684 113,131 14,883 $ 851,144 $ 255,638 $ (132,852) (1) Fiscal 2023 includes gains from sale of equity investments (see Note 1). The Provision (Benefit) for Income Taxes consists of (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Current: Federal $ 28,118 $ 1,125 $ (18,245) State and local 16,108 7,467 (1,309) Non-United States 18,843 17,447 22,155 63,069 26,039 2,601 Deferred: Federal (1) 101,120 29,912 (15,364) State and local 10,058 1,525 (11,652) Non-United States 3,367 3,985 (16,218) 114,545 35,422 (43,234) $ 177,614 $ 61,461 $ (40,633) (1) Fiscal 2023 increase in deferred tax expense is a result of the utilization of tax credit carryforward assets. During fiscal 2021, the Current Provision (Benefit) for Income Taxes includes $16.7 million of tax expense related to an increase in unrecognized tax benefits, offset by a tax benefit of $13.8 million to the Deferred Provision (Benefit) for Income Taxes related to a corresponding decrease in deferred tax liabilities, resulting in a net tax expense to the "Provision (Benefit) for Income Taxes" on the Consolidated Statements of Income (Loss) of $2.9 million related to unrecognized tax benefits. Current taxes receivable of $10.2 million and $10.8 million at September 29, 2023 and September 30, 2022, respectively, are included in "Prepayments and other current assets" on the Consolidated Balance Sheets. Current income taxes payable of $25.0 million and $2.6 million at September 29, 2023 and September 30, 2022, respectively, are included in "Accrued expenses and other current liabilities" on the Consolidated Balance Sheets. During fiscal 2021, the Company received $93.6 million of proceeds related to the fiscal 2020 income tax return from the net operating losses ("NOLs") generated in fiscal 2020 as a result of the CARES Act. The Provision (Benefit) for Income Taxes varies from the amount determined by applying the United States Federal statutory rate to Income (Loss) Before Income Taxes as a result of the following (all percentages are as a percentage of Income (Loss) Before Income Taxes): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 United States statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in taxes, resulting from: State income taxes, net of Federal tax benefit 2.4 4.7 7.7 Foreign taxes 1.1 4.0 6.1 Reduction of foreign valuation allowances (0.4) (2.1) (16.5) Permanent book/tax differences (0.4) 2.4 (0.4) Uncertain tax positions 0.7 1.0 (2.2) Reduction of foreign tax credit valuation allowance (0.6) (0.3) (27.5) Sale of investments (1) (1.6) — — CARES Act - Carryback rate differential — — 37.9 Canada Defined Benefit Pension Plan Termination — — 3.0 Pennsylvania Rate Change Impact — (1.7) — Tax credits & other (1.3) (5.0) 1.5 Effective income tax rate 20.9 % 24.0 % 30.6 % (1) Includes mainly capital tax gains related to the sale of equity investments in AIM offset by capital tax losses in certain investments in foreign entities. 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 each reporting date, the Company considers existing evidence, both positive and negative, that could impact the need for valuation allowances against DTAs. During fiscal 2023 and fiscal 2022, the Company recorded a benefit to the "Provision (Benefit) for Income Taxes" within the Consolidated Statements of Income (Loss) of $3.8 million and $8.5 million, respectively, for the reversal of a valuation allowance at a subsidiary in the FSS International segment. The valuation allowance reversal was driven by the Company's ability to utilize DTAs based on future taxable income expected due to business acquisitions. During fiscal 2021, the Company recorded a valuation allowance against DTAs based on cumulative losses in certain subsidiaries in the FSS International segment of $22.0 million to the "Provision (Benefit) for Income Taxes" on the Consolidated Statements of Income (Loss). The Company continues to monitor operating performance 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. During fiscal 2023, the Company recorded a net expense to the "Provision (Benefit) for Income Taxes" on the Consolidated Statements of Income (Loss) of $76.7 million, of which $98.4 million reflects the capital gain on the sale of its AIM Services Co., Ltd. equity investment, offset by $21.7 million of capital losses resulting from the restructuring of certain foreign subsidiaries. On July 8, 2022, Pennsylvania enacted a corporate net income tax rate reduction over a nine year period. The income tax rate for the 2022 and 2023 tax years are 9.99% and 8.99%, respectively. Starting with the 2024 tax year, the income tax rate is reduced by 0.50% annually until it reaches 4.99% for the 2031 tax year. The Company calculated the impact of the income tax rate reduction on the DTA and DTL balances at September 30, 2022 and recorded a net benefit of $4.2 million to the "Provision (Benefit) for Income Taxes" within the Consolidated Statements of Income (Loss) during fiscal 2022. On March 27, 2020, the CARES Act was enacted in response to COVID-19. The CARES Act, among other things, permitted NOLs incurred in fiscal years 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 years 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 year 2018, the resulting refund would be in years with a 35.0% federal income tax rate. During fiscal 2021, the Company recorded, as a result of the CARES Act, a net benefit to the "Provision (Benefit) for Income Taxes" on the Consolidated Statements of Income (Loss) of $12.0 million, of which $50.3 million reflected the NOLs expected to be carried back to Pre-Tax Cuts and Jobs Act ("TCJA") years at 35.0% as opposed to the current year rate of 21.0%, which more than offsets the $36.5 million valuation allowance on DTAs related to foreign tax credit ("FTC") carryforwards and $1.8 million of tax benefits eliminated by the NOLs carried back. For the fiscal year ended October 1, 2021, the NOL carryback generated a $3.7 million current taxes receivable, along with $71.3 million of FTCs and $11.0 million of general business credits that will be used to offset future federal income tax liabilities. The Company recorded a net benefit to the "Provision (Benefit) for Income Taxes" on the Consolidated Statements of Income (Loss) of $4.0 million during fiscal 2021 related to the release of certain stranded tax effects when the Company terminated certain Canadian pension plans (see Note 9). As of September 29, 2023 and September 30, 2022, the components of Deferred Income Taxes are as follows (in thousands): September 29, 2023 September 30, 2022 Deferred tax liabilities: Derivatives $ 38,339 $ 40,325 Property and equipment 60,622 98,331 Investments 13,864 44,233 Other intangible assets, including goodwill 635,154 606,211 Cost to fulfill - Rental merchandise in-service 70,359 56,976 Operating Lease Right-of-use Assets 61,049 83,270 Computer software costs and other 33,014 25,401 Gross deferred tax liability 912,401 954,747 Deferred tax assets: Insurance 13,999 16,087 Employee compensation and benefits 98,791 83,467 Accruals and allowances 27,640 31,803 Operating lease liabilities 74,024 91,492 NOL/credit carryforwards and other 192,309 345,119 Gross deferred tax asset, before valuation allowances 406,763 567,968 Valuation allowances (78,194) (83,827) Net deferred tax liability $ 583,832 $ 470,606 Rollforward of the valuation allowance is as follows: September 29, 2023 September 30, 2022 Balance, beginning of year $ (83,827) $ (97,472) Additions — — Subtractions (1) 5,633 13,645 Balance, end of year $ (78,194) $ (83,827) (1) The subtractions in fiscal 2023 and fiscal 2022 are mainly driven by the reversal of a valuation allowance based on future taxable income expected due to acquisitions of businesses in the FSS International segment. Fiscal 2022 also includes the reversal of valuation allowances related to pensions. DTLs of $610.5 million and $501.4 million as of September 29, 2023 and September 30, 2022, respectively, are included in "Deferred Income Taxes and Other Noncurrent Liabilities" on the Consolidated Balance Sheets. DTAs of $26.7 million and $30.8 million as of September 29, 2023 and September 30, 2022, respectively, are included in "Other Assets" on the Consolidated Balance Sheets. As of September 29, 2023, certain subsidiaries have recorded DTAs of $85.5 million associated with accumulated federal, state and foreign 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 a valuation allowance of $47.1 million on the DTAs related to these state and foreign NOL carryforwards as of September 29, 2023. State NOL carryforwards generally begin to expire in 2024 and foreign NOL carryforwards generally have no expiration date. As of September 29, 2023, the Company has $74.4 million of FTC carryforwards, which begin to expire in 2027, along with $0.8 million of general business credits, which begin to expire in 2044, and $10.1 million of interest restriction carryforwards, which do not expire. The Company has a valuation allowance of $31.1 million on the DTAs related to FTC carryforwards as of September 29, 2023. Undistributed earnings of certain foreign subsidiaries for which no DTL was recorded amounted to approximately $455.9 million and $347.2 million as of September 29, 2023 and September 30, 2022, respectively. The foreign withholding tax cost associated with remitting these earnings is $27.3 million and $20.4 million as of September 29, 2023 and September 30, 2022, respectively. Such amounts have not been accrued by the Company as it believes those foreign earnings are permanently reinvested. The Company has $70.3 million of total gross unrecognized tax benefits as of September 29, 2023, of which $39.9 million, if recognized, would impact the effective tax rate and $30.4 million would result in an adjustment to the DTL or payable. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows (in thousands): September 29, 2023 September 30, 2022 Balance, beginning of year $ 80,220 $ 65,414 Additions based on tax positions taken in the current year 4,433 863 Additions for tax positions taken in prior years (1) — 19,610 Reductions for remeasurements, settlements and payments (2) (12,451) (4,212) Reductions due to statute expiration (1,889) (1,455) Balance, end of year $ 70,313 $ 80,220 (1) Fiscal 2022 includes a $16.2 million reclass from deferred income tax liabilities for a position taken in prior years primarily related to tangible property. (2) Fiscal 2023 includes a remeasurement of foreign tax credit assets that are available to reduce a position taken in prior years. The Company has $11.4 million and $9.7 million accrued for interest and penalties as of September 29, 2023 and September 30, 2022, respectively, on the Consolidated Balance Sheets and recorded $1.7 million, $3.1 million and $2.0 million in interest and penalties during fiscal 2023, fiscal 2022 and fiscal 2021, respectively in the Consolidated Statements of Income (Loss). Interest and penalties related to unrecognized tax benefits are recorded in "Provision (Benefit) for Income Taxes" on the Consolidated Statements of Income (Loss). The Company has $9.6 million of FTCs that will reduce the gross unrecognized tax benefit. 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 United States 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 United States 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. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY: The following table presents the Company's cash dividend payments to its stockholders (in millions): September 29, 2023 September 30, 2022 October 1, 2021 Dividend payments $ 114.6 $ 113.1 $ 112.0 On November 13, 2023, a $0.095 dividend per share of common stock was declared, payable on December 8, 2023, to shareholders of record on the close of business on November 28, 2023. The Company has 100.0 million shares of preferred stock authorized, with a par value of $0.01 per share. At September 29, 2023 and September 30, 2022, zero shares of preferred stock were issued or outstanding. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Sep. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION: On November 12, 2013, the Board of Directors 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 of Directors 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 25.5 million. 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. On February 2, 2021, the Company's stockholders approved the Third Amended and Restated 2013 Stock Incentive Plan, which amended and restated the Company's 2013 Incentive Plan last amended on January 29, 2020. The Third Amended and Restated 2013 Stock Incentive Plan provides for up to 3.5 million of new shares authorized for issuance to participants, in addition to the shares that remained available for issuance under the 2013 Stock Plan. On February 3, 2023, the stockholders of Aramark approved the Aramark 2023 Stock Incentive Plan (the "2023 Stock Plan") to replace the 2013 Stock Plan. The 2023 Stock Plan provides for up to 8.5 million of new shares authorized for issuance to participants, in addition to the shares that remained available for issuance under the 2013 Stock Plan. The following table summarizes the share-based compensation expense and related information for Time-Based Options ("TBOs"), Retention Time-Based Options ("TBO-Rs"), Time-Based Restricted Stock Units ("RSUs"), PSUs, Deferred Stock Units and Employee Stock Purchase Plan ("ESPP") recorded within "Selling and general corporate expenses" on the Consolidated Statements of Income (Loss) (in millions). Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 TBOs $ 15.4 $ 16.2 $ 15.1 TBO-Rs 5.2 4.8 4.6 RSUs 51.5 57.8 46.0 PSUs 10.7 5.6 — Deferred Stock Units 1.7 2.0 1.9 ESPP (1) 2.4 9.1 3.5 $ 86.9 $ 95.5 $ 71.1 Taxes related to share-based compensation $ 15.6 $ 16.9 $ 22.6 Cash Received from Option Exercises/ESPP Purchases 47.0 49.3 41.6 Tax Benefit on Share Deliveries (2) 1.9 1.0 3.8 (1) Share-based compensation expense related to the ESPP decreased during fiscal 2023 compared to fiscal 2022 as the Company suspended its ESPP beginning in the second quarter of fiscal 2023. Share-based compensation expense related to the ESPP increased during fiscal 2022 compared to fiscal 2021 as the program was available for the entirety of fiscal 2022 as compared to only a portion of fiscal 2021, and the program expanded to additional countries in fiscal 2022. (2) The tax benefit on option exercises, restricted stock unit and ESPP unit deliveries is included in "Accrued Expenses" on the Consolidated Statements of Cash Flows. No compensation expense was capitalized. The Company applies an estimated forfeiture assumption of 9.0% per annum based on actual forfeiture activity, which was in effect during each of the fiscal years presented. The below table summarizes the unrecognized compensation expense as of September 29, 2023 related to non-vested awards and the weighted-average period they are expected to be recognized: Unrecognized Compensation Expense Weighted-Average Period TBOs $ 16.6 2.53 TBO-Rs 6.2 1.59 RSUs 59.7 2.39 PSU 23.3 2.51 Total $ 105.8 Stock Options Time-Based Options The Company's annual TBO grants for fiscal 2023 and fiscal 2022 were awarded in November 2022 and November 2021, respectively, while the Company's annual TBO grants for fiscal 2021 were awarded early in September 2020. The fiscal 2023 TBO grants vest solely based upon continued employment over a four year time period. The fiscal 2022 and 2021 TBO grants vest solely based upon continued employment over a three year time period. All TBOs remain exercisable for 10 years from the date of grant. The fair value of the TBOs granted was estimated using the Black-Scholes option pricing model. The expected volatility is based on 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 September 29, 2023 September 30, 2022 October 1, 2021 Expected volatility 42% 41% 40% Expected dividend yield 1.00% - 1.19% 1.18% - 1.30% 1.08% - 1.25% Expected life (in years) 6.25 6.00 6.08 Risk-free interest rate 3.65% - 4.28% 1.26% - 2.96% 0.52% - 1.15% Weighted-average grant-date fair value $17.01 $13.27 $13.08 A summary of TBO activity is presented below: Options Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Term Outstanding at September 30, 2022 7,343 $ 34.19 Granted 928 $ 40.28 Exercised (1,369) $ 31.94 Forfeited and expired (302) $ 37.52 Outstanding at September 29, 2023 6,600 $ 35.36 $ 14,641 6.3 Exercisable at September 29, 2023 4,733 $ 33.92 $ 14,353 5.5 Expected to vest at September 29, 2023 1,707 $ 39.00 $ 272 8.3 Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Total intrinsic value exercised (in millions) $ 12.0 $ 6.4 $ 14.5 Total fair value that vested (in millions) 15.7 13.8 16.0 Retention Time-Based Options In September 2020, the Board of Directors 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. All options remain exercisable for 10 years from the date of grant. 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. 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 30, 2022 5,562 $ 66.15 Exercised (8) $ 35.00 Forfeited and expired (332) $ 66.84 Outstanding at September 29, 2023 5,222 $ 66.15 $ — 6.9 Exercisable at September 29, 2023 1,741 $ 66.15 $ — 6.9 Expected to vest at September 29, 2023 3,209 $ 66.15 $ — 6.9 Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Total intrinsic value exercised (in millions) $ — $ — $ — Total fair value that vested (in millions) 6.9 0.3 — Time-Based Restricted Stock Units The Company's annual RSU grants for fiscal 2023 and fiscal 2022 were awarded in November 2022 and November 2021, respectively, while the Company's annual RSU grants for fiscal 2021 were awarded early in September 2020. For RSU grants awarded during or subsequent to November 2022 and prior to September 2020, the RSU agreement provides that 25% of each grant will vest and be settled in shares on each of the first four anniversaries of the grant date, subject to the participant's continued employment with the Company through each such anniversary. For RSU grants awarded between September 2020 and October 2022, the RSU agreement provides that 33% of each grant 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 30, 2022 3,464 $ 35.59 Granted 1,337 $ 40.26 Vested (1,672) $ 34.18 Forfeited (421) $ 36.70 Outstanding at September 29, 2023 2,708 $ 38.54 Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Total fair value that vested (in millions) $ 57.1 $ 41.6 $ 58.7 Performance Stock Units Under the 2013 Stock Plan and 2023 Stock Plan, the Company is authorized to grant PSUs to its employees. A participant is eligible to become vested in a number of PSUs equal to a percentage, higher or lower, of the target number of PSUs granted based on the level of the Company's achievement of the performance condition. During fiscal 2023, the Company granted PSUs subject to the level of achievement of adjusted revenue growth, adjusted earnings per share, actual return on invested capital and total shareholder return for the cumulative performance period of three years and the participant's continued employment with the Company over four years. The Company is accounting for the fiscal 2023 grants as performance-based awards, 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. During fiscal 2022, the Company granted PSUs subject to the level of achievement of adjusted revenue growth, adjusted operating income growth and a total shareholder return multiplier for the cumulative performance period of three years and the participant's continued employment with the Company over three years. The Company also granted PSUs during fiscal 2022 subject to the level of achievement of actual return on invested capital for the cumulative performance period of three years and the participant's continued employment with the Company over three years. The Company is accounting for the fiscal 2022 grants as performance-based awards, with a market condition, valued utilizing the Monte Carlo Simulation pricing model. The grant-date fair value of the PSUs is based on the fair value of the Company's common stock. No share-based compensation expense was recorded during fiscal 2022 or fiscal 2021 related to PSUs granted during fiscal 2020 as the performance targets for the awards were not met. On October 13, 2023, the Company's Board of Directors, pursuant to the terms of the Third Amended and Restated 2013 Stock Incentive Plan and to reflect the separation and distribution of the Company’s Uniform segment that occurred on September 30, 2023, approved amendments to the performance goals and performance periods for the Company’s outstanding Performance Stock Units ("PSUs"). For the PSUs granted in fiscal 2022, which were subject to performance targets for the three-year period ending September 27, 2024, two-thirds of these PSUs will now be subject to new adjusted performance targets and an adjusted performance period for the two-year period ending September 29, 2023 and the remaining one-third of these PSUs will be subject to new adjusted performance targets for the one-year period ending September 27, 2024. The PSUs granted in fiscal 2023, which were subject to performance targets for the three-year period ending October 3, 2025, were amended to be subject to adjusted performance targets primarily to reflect the Company on a post-spin off basis. The Company's Board of Directors also approved adjustments increasing the maximum aggregate number of shares authorized for awards under the 2023 Stock Plan by an additional 3.5 million shares. Performance Stock Units Units Weighted Average Grant-Date Fair Value Outstanding at September 30, 2022 1,000 $ 41.13 Granted 477 $ 48.88 Forfeited (579) $ 42.93 Outstanding at September 29, 2023 898 $ 44.32 Deferred Stock Units Deferred Stock Units are issued only to non-employee members of the Board of Directors and represent the right to receive shares of the Company's common stock in the future. Each Deferred Stock Unit will be converted to one share of the Company's common stock either on the first day of the seventh month after which such director ceases to serve as a member of the Board of Directors or at the director's election upon vesting. The grant-date fair value of Deferred Stock Units is based on the fair value of the Company's common stock. The Deferred Stock Units vest on the day prior to the next annual meeting of stockholders (which is generally one year after grant). The Company granted 45,319 Deferred Stock Units during fiscal 2023 . In addition, directors may elect to defer their cash retainer into Deferred Stock Units which are fully vested upon issuance. Employee Stock Purchase Plan On February 2, 2021, the Company’s stockholders approved the Aramark 2021 ESPP. The ESPP allows eligible employees to contribute up to 10% of their eligible pay toward the quarterly purchase of the Company’s common stock, subject to an annual maximum dollar amount. The purchase price is 85% of the lesser of the i) fair market value per share of the Company’s common stock as determined on the purchase date or ii) fair market value per share of the Company’s common stock as determined on the first trading day of the quarterly offering period. Purchases under the ESPP are made in March, June, September, and December. The aggregate number of shares of common stock that may be issued under the ESPP may not exceed 12.5 million shares. There were 0.4 million, 1.3 million and 0.5 million shares purchased under the ESPP during the fiscal years ended September 29, 2023, September 30, 2022 and October 1, 2021, respectively. The Company suspended its ESPP beginning in the second quarter of fiscal 2023. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Sep. 29, 2023 | |
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 September 29, 2023 September 30, 2022 October 1, 2021 Earnings (Loss): Net income (loss) attributable to Aramark stockholders $ 674,108 $ 194,484 $ (90,833) Shares: Basic weighted-average shares outstanding 260,592 257,314 254,748 Effect of dilutive securities (1) 2,002 1,760 — Diluted weighted-average shares outstanding 262,594 259,074 254,748 Basic Earnings (Loss) Per Share: Net income (loss) attributable to Aramark stockholders $ 2.59 $ 0.76 $ (0.36) Diluted Earnings (Loss) Per Share: Net income (loss) attributable to Aramark stockholders $ 2.57 $ 0.75 $ (0.36) (1) Incremental shares of 2.0 million have been excluded from the computation of diluted weighted-average shares outstanding for the fiscal year ended October 1, 2021, because the effect would have been antidilutive due to the net loss attributable to Aramark stockholders during the period. Share-based awards to purchase 8.7 million, 9.3 million and 8.8 million shares were outstanding at September 29, 2023, September 30, 2022 and October 1, 2021, respectively, but were not included in the computation of diluted earnings (loss) per common share, as their effect would have been antidilutive. In addition, PSUs related to 0.9 million, 0.5 million and 0.6 million shares were outstanding at September 29, 2023 , September 30, 2022 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Sep. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES: The Company has capital and other purchase commitments of approximately $840.8 million at September 29, 2023 , primarily in connection with commitments for capital projects to help finance improvements or renovations at the facilities in which the Company operates. At September 29, 2023 , the Company also has letters of credit outstanding in the amount of $85.5 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, customers, 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. The Company was involved in a dispute with a client regarding Aramark’s provision of services pursuant to a contract. During fiscal 2022, the Company resolved the matter by entering into a settlement agreement with the client whereby the Company's obligations totaled $13.6 million, resulting in a reversal of previously reserved amounts of $5.7 million, which is included in "Cost of services provided (exclusive of depreciation and amortization)" on the Consolidated Statements of Income (Loss). |
Business Segments
Business Segments | 12 Months Ended |
Sep. 29, 2023 | |
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 74% of the global revenue is related to food services and 26% is related to facilities services. COVID-19 had a negative impact on revenue, operating income, capital expenditures and other identifiable assets for all segments in fiscal 2021 (see Note 1). During fiscal years 2023, 2022 and 2021, the Company recorded a gain of $36.3 million, $19.0 million and $10.0 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, which is included in “Cost of services provided (exclusive of depreciation and amortization)” on the Consolidated Statements of Income (Loss). During fiscal 2023, the Company sold its 50% ownership interest in AIM Services Co., Ltd. and ownership interests in other equity investments recognizing a $427.8 million net pre-tax gain on the Consolidated Statements of Income (Loss) (see Note 1). During fiscal 2021, the Company identified an observable price change related to its equity investment without a readily determinable fair value related to the San Antonio Spurs NBA franchise and recognized a $137.9 million non-cash gain on the Consolidated Statements of Income (Loss) (see Note 1). The Company terminated certain Canadian defined benefit pension plans and recognized a $60.9 million non-cash loss on the Consolidated Statements of Income (Loss) during fiscal 2021 (see Note 9). Financial information by segment is as follows (in millions): Fiscal Year Ended Revenue September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 11,721.4 $ 10,030.8 $ 6,809.3 FSS International 4,361.8 3,656.4 2,866.2 Uniform 2,770.7 2,639.4 2,420.5 $ 18,853.9 $ 16,326.6 $ 12,096.0 Fiscal Year Ended Operating Income September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 669.5 $ 449.0 $ 131.8 FSS International 114.5 112.5 58.2 Uniform 227.3 218.1 120.8 Total Segment Operating Income 1,011.3 779.6 310.8 Corporate (148.4) (151.2) (119.4) Total Operating Income $ 862.9 $ 628.4 $ 191.4 Fiscal Year Ended Reconciliation to Income (Loss) Before Income Taxes September 29, 2023 September 30, 2022 October 1, 2021 Total Operating Income $ 862.9 $ 628.4 $ 191.4 Gain on Equity Investments, net (427.8) — (137.9) Loss on Defined Benefit Pension Plan Termination — — 60.9 Interest and Other Financing Costs, net 439.6 372.8 401.3 Income (Loss) Before Income Taxes $ 851.1 $ 255.6 $ (132.9) Fiscal Year Ended Depreciation and Amortization September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 342.4 $ 330.9 $ 347.4 FSS International 67.3 66.8 69.4 Uniform 136.5 134.3 133.3 Corporate 0.2 0.3 0.6 $ 546.4 $ 532.3 $ 550.7 Fiscal Year Ended Capital Expenditures and Other* September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 299.3 $ 283.3 $ 261.8 FSS International 85.3 76.0 59.3 Uniform 77.9 76.7 90.3 Corporate 0.4 — 0.2 $ 462.9 $ 436.0 $ 411.6 * Includes amounts acquired in business combinations Identifiable Assets September 29, 2023 September 30, 2022 FSS United States $ 9,535.2 $ 9,639.7 FSS International 2,250.8 1,989.1 Uniform 3,242.1 3,227.4 Corporate (1) 1,843.1 226.2 $ 16,871.2 $ 15,082.4 (1) In anticipation of the separation and distribution of Vestis, the Uniform legal entity executed a cash dividend to Aramark Corporate of approximately $1.5 billion, resulting in an increase of identifiable assets within Corporate. The following geographic data include revenue generated by subsidiaries within that geographic area and net property and equipment based on physical location (in millions): Fiscal Year Ended Revenue September 29, 2023 September 30, 2022 October 1, 2021 United States $ 14,050.3 $ 12,277.0 $ 8,947.8 Foreign 4,803.6 4,049.6 3,148.2 $ 18,853.9 $ 16,326.6 $ 12,096.0 Property and Equipment, net September 29, 2023 September 30, 2022 United States $ 1,798.7 $ 1,777.7 Foreign 291.8 254.3 $ 2,090.5 $ 2,032.0 |
Fair Value of Financial Assets
Fair Value of Financial Assets and Financial Liabilities | 12 Months Ended |
Sep. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Financial Liabilities | FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES: Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities recorded at fair value are classified based upon the level of judgment associated with the inputs used to measure their fair value. The hierarchical levels related to the subjectivity of the valuation inputs are defined as follows: • Level 1—inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets • Level 2—inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument • Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement Recurring Fair Value Measurements The Company's financial instruments consist primarily of cash and cash equivalents, marketable securities, accounts receivable, accounts payable, borrowings and derivatives. Management believes that the carrying value of cash and cash equivalents, marketable securities, accounts receivable and accounts payable are representative of their respective fair values. In conjunction with the fair value measurement of the derivative instruments, the Company made an accounting policy election to measure the credit risk of its derivative instruments that are subject to master netting agreements on a net basis by counterparty portfolio, as the gross values would not be materially different. The fair value of the Company's debt at September 29, 2023 and September 30, 2022 was $8,239.6 million and $7,153.4 million, respectively. The carrying value of the Company's debt at September 29, 2023 and September 30, 2022 was $8,263.5 million and $7,410.9 million, respectively. The fair values were computed using market quotes, if available, or based on discounted cash flows using market interest rates as of the end of the respective periods. The inputs utilized in estimating the fair value of the Company's debt has been classified as Level 2 in the fair value hierarchy levels. As part of the Union Supply acquisition completed in fiscal 2022 (see Note 2), the Company recorded a contingent consideration obligation based on the fair value of the expected payments with a separate amount that will be accounted for as compensation expense to be recognized on the Consolidated Statements of Income (Loss) over the earnout period. The Company performed a fair value assessment of the contingent consideration obligation based on the terms and conditions of the Union Supply purchase agreement, using internal models. The inputs utilized in estimating the fair value of the contingent consideration have been classified as Level 3 in the fair value hierarchy levels and are subject to risk and uncertainty. The calculation of fair value is dependent on several subjective factors including future earnings and profitability. If assumptions or estimates vary from what was expected, the fair value of the contingent consideration liability may materially change. During fiscal 2023, due to lower performance than expected mainly from inflationary cost pressures, the Company adjusted the contingent consideration liability to the fair value of the future expected payment, resulting in a gain net of expenses of $37.3 million, which is comprised of the adjusted contingent consideration liability recorded as part of the acquisition and reversal of a portion of compensation expense previously recognized on the Consolidated Statements of Income (Loss) since the acquisition. The income is included in "Cost of services provided (exclusive of depreciation and amortization)" on the Consolidated Statements of Income (Loss) for the fiscal year ended September 29, 2023. The contingent consideration liability at September 29, 2023 and September 30, 2022 was $8.4 million and $45.8 million, respectively. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Sep. 29, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | Rollforward of the valuation allowance is as follows: September 29, 2023 September 30, 2022 Balance, beginning of year $ (83,827) $ (97,472) Additions — — Subtractions (1) 5,633 13,645 Balance, end of year $ (78,194) $ (83,827) (1) The subtractions in fiscal 2023 and fiscal 2022 are mainly driven by the reversal of a valuation allowance based on future taxable income expected due to acquisitions of businesses in the FSS International segment. Fiscal 2022 also includes the reversal of valuation allowances related to pensions. ARAMARK AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE FISCAL YEARS ENDED SEPTEMBER 29, 2023, SEPTEMBER 30, 2022 AND OCTOBER 1, 2021 Additions Reductions (in thousands) Balance, Beginning of Charged to Deductions from Reserves (1) Balance, Description Fiscal Year 2023 Allowance for credit losses $ 56,388 $ 38,074 $ 37,890 $ 56,572 Fiscal Year 2022 Allowance for credit losses $ 79,644 $ 1,923 $ 25,179 $ 56,388 Fiscal Year 2021 Allowance for credit losses $ 74,925 $ 13,544 $ 8,825 $ 79,644 (1) Amounts determined not to be collectible and charged against the reserve and translation. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to Aramark stockholders | $ 674,108 | $ 194,484 | $ (90,833) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 29, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Business, Basis of _2
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Aramark (the "Company") is a leading global provider of food and facilities 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 14-country footprint. The Company also provides services on a more limited basis in several additional countries and in offshore locations. The Company operated 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") - Provided a full-service employee uniform solution, resulting in a contracted and recurring revenue model. The customer base was serviced by a leading geographic footprint in the United States and Canada with programs focused on uniforms, floor mats, towels, linens, restroom supplies, first-aid supplies, safety products and other workplace supplies. Customers operated in the United States and Canada in a wide range of industries, including manufacturing, hospitality, retail, food processing, pharmaceuticals, healthcare and automotive. 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 years ended September 29, 2023, September 30, 2022 and October 1, 2021 were each fifty-two week periods. |
New Accounting Standard Updates | New Accounting Standards Updates Adopted Standards (from most to least recent date of issuance) In December 2022, the Financial Accounting Standards Board ("FASB") issued an accounting standards update ("ASU") which defers the sunset date of Topic 848, Reference Rate Reform , to December 31, 2024 from December 31, 2022 and is effective for the Company upon issuance of the ASU. In January 2021, the FASB issued an ASU, which clarified certain optional expedients and exceptions for contract modifications and hedge accounting that may apply to derivatives that are affected by the discontinuance of the London Interbank Offer Rate ("LIBOR") and the reference rate reform standard. In March 2020, the FASB issued an ASU which provided optional expedients that may be applied to assist with the discontinuance of LIBOR. The expedients allowed 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 fiscal 2020, the Company applied 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 rate reform. During the third quarter of fiscal 2023, the Company applied the optional expedient related to assessment of effectiveness, whereas the Company elected to continue the method of assessing effectiveness as documented in the original hedge documentation and elected to apply the optional expedient so that the reference rate on the hypothetical derivative matches the reference rate on the hedging instrument. The Company may apply the optional expedients of this standard through December 31, 2024. The adoption of this guidance did not have a material impact on the consolidated financial statements. In November 2021, the FASB issued an ASU which requires an entity to provide certain annual disclosures when they have received government assistance. The guidance was effective for the Company in the first quarter of fiscal 2023. The adoption of this guidance did not have a material impact on the consolidated financial statements. Standards Not Yet Adopted (from most to least recent date of issuance) In September 2022, the FASB issued an ASU to enhance the transparency of supplier finance programs, which may be referred to as reverse factoring, payables finance or structured payables arrangements. The guidance will require that a buyer in a supplier finance program disclose the program's nature, activity and potential magnitude. The guidance is effective for the Company in the first quarter of fiscal 2024 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the consolidated financial statements. In October 2021, the FASB issued an ASU which required that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606") as if it had originated the contracts. The guidance is effective for the Company in the first quarter of fiscal 2024 and early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the consolidated financial statements. |
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 be entitled to 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 (exclusive of depreciation and amortization)." 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. The majority of the Company’s receivables balances are based on contracts with customers. The Company estimates and reserves for its credit loss exposure based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount in estimating credit losses. Credit loss expense is classified within "Cost of services provided (exclusive of depreciation and amortization)." 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 IncomeComprehensive income includes all changes to stockholders' equity during a period, except those resulting from investments by and distributions to stockholders. Components of comprehensive income include net income (loss), changes in foreign currency translation adjustments (net of tax), pension plan adjustments (net of tax), changes in the fair value of cash flow hedges (net of tax) and changes to the share of any equity investees' comprehensive income (net of tax). |
Currency Translation | Currency TranslationGains and losses resulting from the translation of financial statements of non-United States subsidiaries are reflected as a component of accumulated other comprehensive 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. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated over their estimated useful lives on a straight-line basis. Gains and losses on dispositions are included in operating results. Maintenance and repairs are charged to current operations and replacements and significant improvements that extend the useful life of the asset are capitalized. The estimated useful lives for the major categories of property and equipment are generally 10 years 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 |
Sep. 29, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Components of Comprehensive Income | The summary of the components of comprehensive income is as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Pre-Tax Amount Tax Effect After-Tax Amount Net income (loss) $ 673,530 $ 194,177 $ (92,219) Pension plan adjustments (7,960) 929 (7,031) 26,184 (9,071) 17,113 63,959 (15,391) 48,568 Foreign currency translation adjustments 28,136 (7,863) 20,273 (96,783) 10,407 (86,376) 7,383 1,542 8,925 Cash flow hedges: Unrealized gains arising during the period 51,541 (13,401) 38,140 193,616 (50,340) 143,276 1,228 (319) 909 Reclassification adjustments (59,117) 15,371 (43,746) 27,970 (7,272) 20,698 50,595 (13,155) 37,440 Share of equity investee's comprehensive income 10,616 (4,918) 5,698 1,729 — 1,729 3,405 — 3,405 Other comprehensive income 23,216 (9,882) 13,334 152,716 (56,276) 96,440 126,570 (27,323) 99,247 Comprehensive income 686,864 290,617 7,028 Less: Net loss attributable to noncontrolling interests (578) (307) (1,386) Comprehensive income attributable to Aramark stockholders $ 687,442 $ 290,924 $ 8,414 |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following (in thousands): September 29, 2023 September 30, 2022 Pension plan adjustments $ (14,241) $ (7,210) Foreign currency translation adjustments (193,115) (213,388) Cash flow hedges 109,119 114,725 Share of equity investee's accumulated other comprehensive loss — (5,698) $ (98,237) $ (111,571) |
Schedule of Components of Inventories | The components of inventories are as follows: September 29, 2023 September 30, 2022 Food 66.9 % 64.0 % Career apparel and linens 28.6 % 31.7 % Parts, supplies and novelties 4.5 % 4.3 % 100.0 % 100.0 % |
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): September 29, 2023 September 30, 2022 Prepaid Insurance $ 21,573 $ 15,192 Prepaid Taxes and Licenses 13,575 11,087 Current Income Tax Asset 10,198 10,842 Marketable Securities (1) 110,714 78,204 Other Prepaid Expenses 158,703 146,870 $ 314,763 $ 262,195 (1) Marketable securities represent held-to-maturity debt securities with original maturities greater than three months, which are maturing within one year. |
Schedule of Other Assets | Other Assets The following table presents details of "Other Assets" as presented in the Consolidated Balance Sheets (in thousands): September 29, 2023 September 30, 2022 Cost to fulfill - Client (1) $ 92,458 $ 97,830 Cost to fulfill - Rental merchandise in-service (2) 366,677 359,657 Long-term receivables 24,403 26,412 Miscellaneous investments (3) 184,955 405,463 Computer software costs, net (4) 202,665 199,521 Interest rate swap agreements (5) 147,458 149,755 Employee sales commissions (6) 138,400 131,443 Other (7) 150,926 167,325 $ 1,307,942 $ 1,537,406 (1) Cost to fulfill - Client represent payments made by the Company to enhance the service resources used by the Company to satisfy its performance obligation (see Note 7). (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. (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 8.2 million (5) Interest rate swaps represent receivable under cash flow hedging agreements based on current forward interest rates (see Note 6). (6) Employee sales commissions represent commission payments made to employees related to new or retained business contracts (see Note 7). (7) 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): September 29, 2023 September 30, 2022 Deferred income (1) $ 360,936 $ 346,954 Accrued client expenses 212,303 172,894 Accrued taxes 91,971 58,988 Accrued insurance (2) and interest 194,830 184,676 Other 501,826 408,559 $ 1,361,866 $ 1,172,071 (1) Includes consideration received in advance from customers prior to the service being performed ($340.6 million and $324.5 million) or from vendors prior to the goods being consumed ($20.3 million and $22.4 million) in fiscal 2023 and fiscal 2022, respectively. (2) 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, workers’ compensation liability and certain property damage programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on the Company's 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): September 29, 2023 September 30, 2022 Deferred income taxes (see Note 10) $ 610,470 $ 501,404 Deferred compensation 211,892 211,703 Pension-related liabilities 11,205 11,775 Insurance reserves (1) 147,641 141,104 Other noncurrent liabilities (2) 180,597 240,601 $ 1,161,805 $ 1,106,587 (1) The Company is self-insured for certain obligations for certain risks retained under its general liability, automobile liability, workers’ compensation liability and certain property damage programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on the Company's claims history. (2) Fiscal 2022 includes the contingent consideration liabilities related to the Union Supply Group, Inc. acquisition ($45.8 million) and Next Level acquisition ($48.4 million) (see Note 16). |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information Fiscal Year Ended (in millions) September 29, 2023 September 30, 2022 October 1, 2021 Interest paid $ 410.5 $ 333.3 $ 369.7 Income taxes paid (refunded) 47.0 16.2 (104.9) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarize the assets and liabilities assigned as of the acquisition date (in thousands): Current assets $ 102,925 Noncurrent assets 208,181 Total assets $ 311,106 Current liabilities $ 24,308 Noncurrent liabilities 87,171 Total liabilities $ 111,479 Current assets $ 18,088 Noncurrent assets 307,291 Total assets $ 325,379 Current liabilities $ 50,956 Noncurrent liabilities 48,323 Total liabilities $ 99,279 |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination | The following table identifies the Company’s allocation 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 $ 82.3 15 Trade name 43.0 15 Total intangible assets $ 125.3 Estimated Fair Value (in millions) Weighted-Average Estimated Useful Life (in years) Customer relationship assets $ 133.0 15 Trade name 49.5 15 Total intangible assets $ 182.5 |
Severance (Tables)
Severance (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring and Related Costs | The following table summarizes the severance charges by segment related to the fiscal 2023 actions recognized in the Consolidated Statements of Income (Loss) for the fiscal year ended September 29, 2023 (in millions): FSS United States $ 3.3 FSS International 31.2 Uniform 6.6 Corporate 0.6 $ 41.7 The following table summarizes the severance charges by segment related to the fiscal 2022 actions recognized in the Consolidated Statements of Income (Loss) for the fiscal year ended September 30, 2022 (in millions): FSS United States $ 7.7 FSS International 11.9 $ 19.6 |
Schedule of the Accrual Related to the Unpaid Obligations for Severance and Related Costs | The following table summarizes the unpaid obligations for severance and related costs as of September 29, 2023, which are included in "Accrued payroll and related expenses" on the Consolidated Balance Sheets (in millions): September 30, 2022 Charges (Reversals) Payments September 29, 2023 Fiscal 2022 Severance $ 16.8 $ (1.3) $ (14.7) $ 0.8 Fiscal 2023 Severance — 41.7 (20.4) 21.3 Total Reorganization $ 16.8 $ 40.4 $ (35.1) $ 22.1 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Assets by Segment | Changes in total goodwill during fiscal 2023 are as follows (in thousands): Segment September 30, 2022 Acquisitions Translation & Other September 29, 2023 FSS United States $ 4,150,266 $ 14,120 $ 6 $ 4,164,392 FSS International 401,483 28,770 21,341 451,594 Uniform 963,375 — 168 963,543 $ 5,515,124 $ 42,890 $ 21,515 $ 5,579,529 |
Schedule of other intangible assets | Other intangible assets consist of (in thousands): September 29, 2023 September 30, 2022 Gross Accumulated Net Gross Accumulated Net Customer relationship assets $ 1,500,640 $ (595,514) $ 905,126 $ 1,474,588 $ (487,877) $ 986,711 Trade names 1,154,048 (16,092) 1,137,956 1,133,736 (6,721) 1,127,015 $ 2,654,688 $ (611,606) $ 2,043,082 $ 2,608,324 $ (494,598) $ 2,113,726 |
Schedule of expected amortization expense | Based on the recorded balances at September 29, 2023, total estimated amortization of all acquisition-related intangible assets for fiscal years 2024 through 2028 are as follows (in thousands): 2024 $ 117,119 2025 117,231 2026 113,199 2027 104,559 2028 98,385 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Borrowings | Long-term borrowings, net, are summarized in the following table (in thousands): September 29, 2023 September 30, 2022 Senior secured revolving credit facility, due April 2026 $ 170,759 $ 90,897 Senior secured term loan facility, due March 2025 — 1,661,611 Senior secured term loan facility, due April 2026 258,060 334,135 Senior secured term loan facility, due January 2027 835,631 834,619 Senior secured term loan facility, due April 2028 724,393 723,170 Senior secured term loan facility, due June 2030 1,078,588 — Uniform senior secured term loan facility, due September 2025 795,223 — Uniform senior secured term loan facility, due September 2028 693,720 — 5.000% senior notes, due April 2025 549,348 547,981 3.125% senior notes, due April 2025 (1) 342,718 317,204 6.375% senior notes, due May 2025 1,492,153 1,487,593 5.000% senior notes, due February 2028 1,142,910 1,141,491 Receivables Facility, due July 2026 — 104,935 Finance leases 164,810 147,373 Other 15,201 19,898 8,263,514 7,410,907 Less—current portion (1,596,942) (65,047) $ 6,666,572 $ 7,345,860 (1) This is a Euro denominated borrowing. See the disclosure below in the Senior Notes section for further information. |
Schedule of Maturities of Long-term Debt | At September 29, 2023, annual maturities on long-term borrowings maturing in the next five fiscal years and thereafter (excluding the $47.1 million reduction to long-term borrowings from debt issuance costs, $10.7 million reduction from the discount on the United States Term B-6 Loans due 2030 and $0.5 million reduction from the discount on the United States Term B-4 Loans due 2027) are as follows (in thousands): 2024 $ 1,610,749 2025 1,832,316 2026 434,529 2027 910,182 2028 2,470,875 Thereafter 1,091,650 |
Schedule of Interest and Other Financing Costs Net | The components of interest and other financing costs, net, are summarized as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Interest expense $ 441,262 $ 381,533 $ 413,713 Interest income (30,246) (17,617) (15,250) Other financing costs 28,569 8,811 2,903 Total $ 439,585 $ 372,727 $ 401,366 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
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 (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Interest rate swap agreements (1) $ 51,541 $ 193,616 $ 1,228 (1) Change in the amounts driven by changes in forward interest rates. |
Schedule of Derivative Instruments, Balance Sheet Presentation | The following table summarizes the location and fair value, using Level 2 inputs (see Note 16 for a description of the fair value levels), of the Company's derivatives designated and not designated as hedging instruments on the Consolidated Balance Sheets (in thousands): Balance Sheet Location September 29, 2023 September 30, 2022 ASSETS Designated as hedging instruments: Interest rate swap agreements Prepayments and other current assets $ — $ 5,278 Interest rate swap agreements Other Assets 147,458 149,755 $ 147,458 $ 155,033 LIABILITIES Not designated as hedging instruments: Gasoline and diesel fuel agreements Accounts Payable $ 1 $ 2,631 $ 1 $ 2,631 |
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 the (gain) loss reclassified from "Accumulated other comprehensive loss" into earnings for derivatives designated as hedging instruments and the location of the loss (gain) for the Company's derivatives not designated as hedging instruments on the Consolidated Statements of Income (Loss) (in thousands): Fiscal Year Ended Income Statement Location September 29, 2023 September 30, 2022 October 1, 2021 Designated as hedging instruments: Interest rate swap agreements (1) Interest and Other Financing Costs, net $ (59,117) $ 27,970 $ 50,595 Not designated as hedging instruments: Gasoline and diesel fuel agreements Cost of services provided (exclusive of depreciation and amortization)/ Selling and general corporate expenses 314 (3,203) (8,044) $ (58,803) $ 24,767 $ 42,551 (1) Change in the amounts driven by changes in forward interest rates. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenue disaggregated by revenue source (in millions): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 (1) FSS United States: Business & Industry $ 1,407.2 $ 1,081.2 $ 695.7 Education 3,437.0 3,161.5 2,124.4 Healthcare 1,318.3 1,235.8 891.2 Sports, Leisure & Corrections 3,537.1 2,722.0 1,511.3 Facilities & Other 2,021.8 1,830.3 1,586.7 Total FSS United States 11,721.4 10,030.8 6,809.3 FSS International: Europe 2,303.6 1,853.3 1,347.5 Rest of World 2,058.2 1,803.1 1,518.7 Total FSS International 4,361.8 3,656.4 2,866.2 Uniform 2,770.7 2,639.4 2,420.5 Total Revenue $ 18,853.9 $ 16,326.6 $ 12,096.0 (1) COVID-19 had a negative impact on revenue for the fiscal year ended October 1, 2021 (see Note 1). |
Contract with Customer, Asset and Liability | The following table summarizes the location of the expense recorded on the Consolidated Statements of Income (Loss) related to the Company's contract balances (in millions): Fiscal Year Ended Income Statement Location September 29, 2023 September 30, 2022 October 1, 2021 Employee sales commissions Cost of services provided (exclusive of depreciation and amortization) $ 28.6 $ 26.3 $ 23.9 Leasehold improvements Depreciation and amortization 129.8 123.9 131.6 Cost to fulfill - Client Depreciation and amortization 17.7 19.5 20.0 Long-term prepaid rent Cost of services provided (exclusive of depreciation and amortization) 47.5 34.8 25.3 Cost to fulfill - Rental merchandise in-service Cost of services provided (exclusive of depreciation and amortization) 343.9 288.5 274.5 September 29, 2023 September 30, 2022 Deferred income $ 356.1 $ 324.5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
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 (in thousands), as well as the weighted average remaining lease term and weighted average discount rate: Leases Balance Sheet Location September 29, 2023 September 30, 2022 Assets: Operating (1)(2) Operating Lease Right-of-use Assets $ 630,158 $ 592,145 Finance Property and Equipment, net 152,551 137,550 Total lease assets $ 782,709 $ 729,695 Liabilities: Current Operating Current operating lease liabilities $ 71,206 $ 68,858 Finance Current maturities of long-term borrowings 31,412 27,430 Noncurrent Operating Noncurrent Operating Lease Liabilities 291,955 305,623 Finance Long-term borrowings 133,398 119,943 Total lease liabilities $ 527,971 $ 521,854 Weighted average remaining lease term (in years) Operating leases 7.1 7.7 Finance leases 7.4 7.7 Weighted average discount rate Operating leases 4.3 % 3.7 % Finance leases 4.4 % 4.0 % (1) Includes $320.1 million and $260.2 million of long-term prepaid rent as of September 29, 2023 and September 30, 2022, respectively. (2) During fiscal 2023, the Company recorded impairment charges to its Operating Lease Right-of-use Assets (see Note 1). |
Lease, Cost | The following table summarizes the location of lease related costs on the Consolidated Statements of Income (Loss) (in thousands): Fiscal Year Ended Lease Cost Income Statement Location September 29, 2023 September 30, 2022 October 1, 2021 Operating lease cost (1) : Fixed lease costs Cost of services provided (exclusive of depreciation and amortization) $ 133,510 $ 122,607 $ 116,934 Variable lease costs (2) Cost of services provided (exclusive of depreciation and amortization) 932,225 774,437 344,130 Short-term lease costs Cost of services provided (exclusive of depreciation and amortization) 87,962 71,726 48,288 Finance lease cost (3) : Amortization of right-of-use-assets Depreciation and amortization 34,745 32,702 31,243 Interest on lease liabilities Interest and Other Financing Costs, net 5,666 4,499 4,794 Net lease cost $ 1,194,108 $ 1,005,971 $ 545,389 (1) Excludes sublease income, which is immaterial. (2) Includes $903.4 million, $745.6 million and $325.3 million of costs related to leases associated with revenue contracts with customers for fiscal 2023, 2022 and 2021, respectively. 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 2021 was 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 periods reported is as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 194,663 $ 135,936 $ 189,061 Operating cash flows from finance leases 5,666 4,499 4,794 Financing cash flows from finance leases 31,808 31,289 32,496 Lease assets obtained in exchange for lease obligations: Operating leases $ 64,857 $ 82,635 $ 61,345 Finance leases 47,488 35,839 36,046 (1) For fiscal 2023, excludes cash paid for variable and short-term lease costs of $919.0 million and $88.0 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2022, excludes cash paid for variable and short-term lease costs of $734.2 million and $71.7 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2021, excludes cash paid for variable and short-term lease costs of $304.5 million and $48.3 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 September 29, 2023 are as follows (in thousands): Operating leases Finance leases Total 2024 $ 85,073 $ 37,366 $ 122,439 2025 71,165 33,906 105,071 2026 58,165 29,310 87,475 2027 45,612 24,039 69,651 2028 37,319 19,300 56,619 Thereafter 125,028 49,400 174,428 Total future minimum lease payments $ 422,362 $ 193,321 $ 615,683 Less: Interest (59,201) (28,511) (87,712) Present value of lease liabilities $ 363,161 $ 164,810 $ 527,971 |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under non-cancelable leases as of September 29, 2023 are as follows (in thousands): Operating leases Finance leases Total 2024 $ 85,073 $ 37,366 $ 122,439 2025 71,165 33,906 105,071 2026 58,165 29,310 87,475 2027 45,612 24,039 69,651 2028 37,319 19,300 56,619 Thereafter 125,028 49,400 174,428 Total future minimum lease payments $ 422,362 $ 193,321 $ 615,683 Less: Interest (59,201) (28,511) (87,712) Present value of lease liabilities $ 363,161 $ 164,810 $ 527,971 |
Employee Pension and Profit S_2
Employee Pension and Profit Sharing Plans - (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
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 2023, fiscal 2022 and fiscal 2021 (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Service cost $ 840 $ 1,045 $ 1,327 Interest cost 6,521 3,887 4,736 Expected return on plan assets (8,271) (9,915) (14,003) Settlements and curtailments (1) — — 61,706 Amortization of prior service cost 26 27 32 Recognized net loss 446 4,574 3,829 Net periodic pension (income) expense $ (438) $ (382) $ 57,627 (1) During fiscal 2021, the Company terminated certain Canadian single-employer defined benefit pension plans and recognized a non-cash loss of $60.9 million on the Consolidated Statements of Income (Loss). |
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 plan assets: September 29, 2023 September 30, 2022 Fair value of plan assets, beginning $ 161,504 $ 239,013 Foreign currency translation 10,991 (29,381) Employer contributions 1,184 5,710 Employee contributions 47 88 Actual return on plan assets (7,021) (30,650) Benefits paid (8,895) (23,276) Fair value of plan assets, end $ 157,810 $ 161,504 Change in benefit obligation: Benefit obligation, beginning $ 122,628 $ 220,950 Foreign currency translation 7,492 (22,871) Service cost 840 1,045 Interest cost 6,521 3,887 Employee contributions 47 88 Actuarial gain (8,162) (57,195) Benefits paid (8,895) (23,276) Benefit obligation, ending 120,471 122,628 Funded Status at end of year $ 37,339 $ 38,876 |
Schedule of Amounts Recognized in Balance Sheet Including Accumulated Other Comprehensive Income | Amounts recognized on the Consolidated Balance Sheets consist of the following (in thousands): September 29, 2023 September 30, 2022 Noncurrent benefit asset (included in Other Assets) $ 45,443 $ 47,436 Noncurrent benefit liability (included in Other Noncurrent Liabilities) (8,104) (8,560) Net actuarial loss (included in Accumulated other comprehensive loss before taxes) 28,352 20,411 |
Schedule of Assumptions Used | The following weighted average assumptions were used to determine pension expense of the respective fiscal years: September 29, 2023 September 30, 2022 Discount rate 5.1 % 2.1 % Rate of compensation increase 0.5 % 2.2 % Long-term rate of return on assets 5.2 % 4.8 % The following weighted average assumptions were used to determine the funded status of the respective fiscal years: September 29, 2023 September 30, 2022 Discount rate 5.4 % 4.9 % Rate of compensation increase 0.6 % 2.0 % |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table sets forth information for the Company's single-employer pension plans with an accumulated benefit obligation in excess of plan assets as of September 29, 2023 and September 30, 2022 (in thousands): September 29, 2023 September 30, 2022 Projected benefit obligation $ 8,104 $ 8,560 Accumulated benefit obligation 8,104 8,560 |
Schedule of Allocation of Plan Assets | The fair value of plan assets for the Company's defined benefit pension plans as of September 29, 2023 and September 30, 2022 is as follows (see Note 16 for a description of the fair value levels) (in thousands): September 29, 2023 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Cash and cash equivalents $ 14,017 $ 14,017 $ — $ — Equity securities: Investment trusts 1,591 1,591 — — Investment funds: Equity funds 14,374 — 14,374 — Fixed income funds 126,899 — 126,899 — Real estate 929 — — 929 Total $ 157,810 $ 15,608 $ 141,273 $ 929 September 30, 2022 Quoted prices in active markets Significant other observable inputs Significant unobservable inputs Cash and cash equivalents $ 6,746 $ 6,746 $ — $ — Equity securities: Investment trusts 1,641 1,641 — — Investment funds: Equity funds 67,035 — 67,035 — Fixed income funds 76,275 — 76,275 — Real estate 9,807 — — 9,807 Total $ 161,504 $ 8,387 $ 143,310 $ 9,807 |
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 2024 $ 6,589 Fiscal 2025 6,859 Fiscal 2026 6,855 Fiscal 2027 6,962 Fiscal 2028 7,560 Fiscal 2029 – 2033 41,709 |
Schedule of Multiemployer Plans | There have been no significant changes that affect the comparability of fiscal 2023, fiscal 2022 and fiscal 2021 contributions. Pension EIN/Pension Pension Protection FIP/RP Status Pending/ Implemented Contributions by the Company Range of Expiration Dates of CBAs 2023 2022 2023 2022 2021 Surcharge National Retirement Fund 13-6130178/ 001 Critical Critical Implemented $ 3,994 $ 3,434 $ 2,579 No 8/4/2023 - 8/28/2026 UNITE HERE Retirement Fund 82-0994119/ 001 Critical and Declining Critical and Declining Implemented 6,379 5,483 2,699 No 12/31/2022 - 1/1/2026 Local 1102 Retirement Trust 13-1847329/ 001 Critical and Declining Critical and Declining Implemented 65 33 22 No 9/30/2024 Central States SE and SW Areas Pension Plan 36-6044243/ 001 Critical Critical and Declining Implemented 4,439 4,167 3,994 No 3/8/2024 - 9/22/2028 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 23-2627428/ 001 Critical and Declining Critical Implemented 333 353 354 No 1/31/2023 SEIU National Industry Pension Fund (1) 52-6148540/ 001 Critical Critical Implemented 230 795 750 No 3/31/2021 - 6/30/2025 Retail Wholesale & Department Store International Union and Industry Pension Fund 63-0708442/ 001 Critical and Declining Critical and Declining Implemented 466 462 510 No 7/5/2023 - 5/31/2027 Other funds 17,617 16,113 15,995 Total contributions $ 33,523 $ 30,840 $ 26,903 (1) Approximately 50% of the Company's participants in this fund are covered by a single CBA that expires on 4/14/2025. 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 12/31/2022, 12/31/2021 and 12/31/2020 National Retirement Fund 12/31/2022 and 12/31/2020 Retail Wholesale & Department Store International Union and Industry Pension Fund 12/31/2022, 12/31/2021 and 12/31/2020 Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity 12/31/2022 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income taxes by source of income | The components of Income (Loss) Before Income Taxes by source of income (loss) are as follows (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 United States $ 391,460 $ 142,507 $ (147,735) Non-United States (1) 459,684 113,131 14,883 $ 851,144 $ 255,638 $ (132,852) (1) Fiscal 2023 includes gains from sale of equity investments (see Note 1). |
Provision (benefit) for income taxes | The Provision (Benefit) for Income Taxes consists of (in thousands): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Current: Federal $ 28,118 $ 1,125 $ (18,245) State and local 16,108 7,467 (1,309) Non-United States 18,843 17,447 22,155 63,069 26,039 2,601 Deferred: Federal (1) 101,120 29,912 (15,364) State and local 10,058 1,525 (11,652) Non-United States 3,367 3,985 (16,218) 114,545 35,422 (43,234) $ 177,614 $ 61,461 $ (40,633) (1) Fiscal 2023 increase in deferred tax expense is a result of the utilization of tax credit carryforward assets. |
Effective Income Tax Rate Reconciliation | The Provision (Benefit) for Income Taxes varies from the amount determined by applying the United States Federal statutory rate to Income (Loss) Before Income Taxes as a result of the following (all percentages are as a percentage of Income (Loss) Before Income Taxes): Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 United States statutory income tax rate 21.0 % 21.0 % 21.0 % Increase (decrease) in taxes, resulting from: State income taxes, net of Federal tax benefit 2.4 4.7 7.7 Foreign taxes 1.1 4.0 6.1 Reduction of foreign valuation allowances (0.4) (2.1) (16.5) Permanent book/tax differences (0.4) 2.4 (0.4) Uncertain tax positions 0.7 1.0 (2.2) Reduction of foreign tax credit valuation allowance (0.6) (0.3) (27.5) Sale of investments (1) (1.6) — — CARES Act - Carryback rate differential — — 37.9 Canada Defined Benefit Pension Plan Termination — — 3.0 Pennsylvania Rate Change Impact — (1.7) — Tax credits & other (1.3) (5.0) 1.5 Effective income tax rate 20.9 % 24.0 % 30.6 % (1) Includes mainly capital tax gains related to the sale of equity investments in AIM offset by capital tax losses in certain investments in foreign entities. |
Components of deferred taxes | As of September 29, 2023 and September 30, 2022, the components of Deferred Income Taxes are as follows (in thousands): September 29, 2023 September 30, 2022 Deferred tax liabilities: Derivatives $ 38,339 $ 40,325 Property and equipment 60,622 98,331 Investments 13,864 44,233 Other intangible assets, including goodwill 635,154 606,211 Cost to fulfill - Rental merchandise in-service 70,359 56,976 Operating Lease Right-of-use Assets 61,049 83,270 Computer software costs and other 33,014 25,401 Gross deferred tax liability 912,401 954,747 Deferred tax assets: Insurance 13,999 16,087 Employee compensation and benefits 98,791 83,467 Accruals and allowances 27,640 31,803 Operating lease liabilities 74,024 91,492 NOL/credit carryforwards and other 192,309 345,119 Gross deferred tax asset, before valuation allowances 406,763 567,968 Valuation allowances (78,194) (83,827) Net deferred tax liability $ 583,832 $ 470,606 |
Schedule of Valuation and Qualifying Accounts Disclosure | Rollforward of the valuation allowance is as follows: September 29, 2023 September 30, 2022 Balance, beginning of year $ (83,827) $ (97,472) Additions — — Subtractions (1) 5,633 13,645 Balance, end of year $ (78,194) $ (83,827) (1) The subtractions in fiscal 2023 and fiscal 2022 are mainly driven by the reversal of a valuation allowance based on future taxable income expected due to acquisitions of businesses in the FSS International segment. Fiscal 2022 also includes the reversal of valuation allowances related to pensions. ARAMARK AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE FISCAL YEARS ENDED SEPTEMBER 29, 2023, SEPTEMBER 30, 2022 AND OCTOBER 1, 2021 Additions Reductions (in thousands) Balance, Beginning of Charged to Deductions from Reserves (1) Balance, Description Fiscal Year 2023 Allowance for credit losses $ 56,388 $ 38,074 $ 37,890 $ 56,572 Fiscal Year 2022 Allowance for credit losses $ 79,644 $ 1,923 $ 25,179 $ 56,388 Fiscal Year 2021 Allowance for credit losses $ 74,925 $ 13,544 $ 8,825 $ 79,644 (1) Amounts determined not to be collectible and charged against the reserve and translation. |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows (in thousands): September 29, 2023 September 30, 2022 Balance, beginning of year $ 80,220 $ 65,414 Additions based on tax positions taken in the current year 4,433 863 Additions for tax positions taken in prior years (1) — 19,610 Reductions for remeasurements, settlements and payments (2) (12,451) (4,212) Reductions due to statute expiration (1,889) (1,455) Balance, end of year $ 70,313 $ 80,220 (1) Fiscal 2022 includes a $16.2 million reclass from deferred income tax liabilities for a position taken in prior years primarily related to tangible property. (2) Fiscal 2023 includes a remeasurement of foreign tax credit assets that are available to reduce a position taken in prior years. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Stockholders' Equity Note [Abstract] | |
Dividends Paid | The following table presents the Company's cash dividend payments to its stockholders (in millions): September 29, 2023 September 30, 2022 October 1, 2021 Dividend payments $ 114.6 $ 113.1 $ 112.0 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following table summarizes the share-based compensation expense and related information for Time-Based Options ("TBOs"), Retention Time-Based Options ("TBO-Rs"), Time-Based Restricted Stock Units ("RSUs"), PSUs, Deferred Stock Units and Employee Stock Purchase Plan ("ESPP") recorded within "Selling and general corporate expenses" on the Consolidated Statements of Income (Loss) (in millions). Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 TBOs $ 15.4 $ 16.2 $ 15.1 TBO-Rs 5.2 4.8 4.6 RSUs 51.5 57.8 46.0 PSUs 10.7 5.6 — Deferred Stock Units 1.7 2.0 1.9 ESPP (1) 2.4 9.1 3.5 $ 86.9 $ 95.5 $ 71.1 Taxes related to share-based compensation $ 15.6 $ 16.9 $ 22.6 Cash Received from Option Exercises/ESPP Purchases 47.0 49.3 41.6 Tax Benefit on Share Deliveries (2) 1.9 1.0 3.8 (1) Share-based compensation expense related to the ESPP decreased during fiscal 2023 compared to fiscal 2022 as the Company suspended its ESPP beginning in the second quarter of fiscal 2023. Share-based compensation expense related to the ESPP increased during fiscal 2022 compared to fiscal 2021 as the program was available for the entirety of fiscal 2022 as compared to only a portion of fiscal 2021, and the program expanded to additional countries in fiscal 2022. (2) The tax benefit on option exercises, restricted stock unit and ESPP unit deliveries is included in "Accrued Expenses" on the Consolidated Statements of Cash Flows. |
Schedule of Unrecognized Compensation Cost, Nonvested Awards | The below table summarizes the unrecognized compensation expense as of September 29, 2023 related to non-vested awards and the weighted-average period they are expected to be recognized: Unrecognized Compensation Expense Weighted-Average Period TBOs $ 16.6 2.53 TBO-Rs 6.2 1.59 RSUs 59.7 2.39 PSU 23.3 2.51 Total $ 105.8 |
Schedule of Stock Option Valuation Assumptions | The table below presents the weighted average assumptions and related valuations for TBOs. Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Expected volatility 42% 41% 40% Expected dividend yield 1.00% - 1.19% 1.18% - 1.30% 1.08% - 1.25% Expected life (in years) 6.25 6.00 6.08 Risk-free interest rate 3.65% - 4.28% 1.26% - 2.96% 0.52% - 1.15% Weighted-average grant-date fair value $17.01 $13.27 $13.08 Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Total intrinsic value exercised (in millions) $ 12.0 $ 6.4 $ 14.5 Total fair value that vested (in millions) 15.7 13.8 16.0 Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Total intrinsic value exercised (in millions) $ — $ — $ — Total fair value that vested (in millions) 6.9 0.3 — Fiscal Year Ended September 29, 2023 September 30, 2022 October 1, 2021 Total fair value that vested (in millions) $ 57.1 $ 41.6 $ 58.7 |
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 30, 2022 7,343 $ 34.19 Granted 928 $ 40.28 Exercised (1,369) $ 31.94 Forfeited and expired (302) $ 37.52 Outstanding at September 29, 2023 6,600 $ 35.36 $ 14,641 6.3 Exercisable at September 29, 2023 4,733 $ 33.92 $ 14,353 5.5 Expected to vest at September 29, 2023 1,707 $ 39.00 $ 272 8.3 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 30, 2022 5,562 $ 66.15 Exercised (8) $ 35.00 Forfeited and expired (332) $ 66.84 Outstanding at September 29, 2023 5,222 $ 66.15 $ — 6.9 Exercisable at September 29, 2023 1,741 $ 66.15 $ — 6.9 Expected to vest at September 29, 2023 3,209 $ 66.15 $ — 6.9 |
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 30, 2022 3,464 $ 35.59 Granted 1,337 $ 40.26 Vested (1,672) $ 34.18 Forfeited (421) $ 36.70 Outstanding at September 29, 2023 2,708 $ 38.54 Performance Stock Units Units Weighted Average Grant-Date Fair Value Outstanding at September 30, 2022 1,000 $ 41.13 Granted 477 $ 48.88 Forfeited (579) $ 42.93 Outstanding at September 29, 2023 898 $ 44.32 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
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 September 29, 2023 September 30, 2022 October 1, 2021 Earnings (Loss): Net income (loss) attributable to Aramark stockholders $ 674,108 $ 194,484 $ (90,833) Shares: Basic weighted-average shares outstanding 260,592 257,314 254,748 Effect of dilutive securities (1) 2,002 1,760 — Diluted weighted-average shares outstanding 262,594 259,074 254,748 Basic Earnings (Loss) Per Share: Net income (loss) attributable to Aramark stockholders $ 2.59 $ 0.76 $ (0.36) Diluted Earnings (Loss) Per Share: Net income (loss) attributable to Aramark stockholders $ 2.57 $ 0.75 $ (0.36) (1) Incremental shares of 2.0 million have been excluded from the computation of diluted weighted-average shares outstanding for the fiscal year ended October 1, 2021, because the effect would have been antidilutive due to the net loss attributable to Aramark stockholders during the period. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Sep. 29, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Sales by Segment | Financial information by segment is as follows (in millions): Fiscal Year Ended Revenue September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 11,721.4 $ 10,030.8 $ 6,809.3 FSS International 4,361.8 3,656.4 2,866.2 Uniform 2,770.7 2,639.4 2,420.5 $ 18,853.9 $ 16,326.6 $ 12,096.0 |
Schedule of Operating Income by Segment | Fiscal Year Ended Operating Income September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 669.5 $ 449.0 $ 131.8 FSS International 114.5 112.5 58.2 Uniform 227.3 218.1 120.8 Total Segment Operating Income 1,011.3 779.6 310.8 Corporate (148.4) (151.2) (119.4) Total Operating Income $ 862.9 $ 628.4 $ 191.4 Fiscal Year Ended Reconciliation to Income (Loss) Before Income Taxes September 29, 2023 September 30, 2022 October 1, 2021 Total Operating Income $ 862.9 $ 628.4 $ 191.4 Gain on Equity Investments, net (427.8) — (137.9) Loss on Defined Benefit Pension Plan Termination — — 60.9 Interest and Other Financing Costs, net 439.6 372.8 401.3 Income (Loss) Before Income Taxes $ 851.1 $ 255.6 $ (132.9) |
Schedule of Depreciation and Amortization by Segment | Fiscal Year Ended Depreciation and Amortization September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 342.4 $ 330.9 $ 347.4 FSS International 67.3 66.8 69.4 Uniform 136.5 134.3 133.3 Corporate 0.2 0.3 0.6 $ 546.4 $ 532.3 $ 550.7 |
Schedule of Capital Expenditures and Client Contract Investments and Other by Segment | Fiscal Year Ended Capital Expenditures and Other* September 29, 2023 September 30, 2022 October 1, 2021 FSS United States $ 299.3 $ 283.3 $ 261.8 FSS International 85.3 76.0 59.3 Uniform 77.9 76.7 90.3 Corporate 0.4 — 0.2 $ 462.9 $ 436.0 $ 411.6 * Includes amounts acquired in business combinations |
Schedule of Assets by Segment | Identifiable Assets September 29, 2023 September 30, 2022 FSS United States $ 9,535.2 $ 9,639.7 FSS International 2,250.8 1,989.1 Uniform 3,242.1 3,227.4 Corporate (1) 1,843.1 226.2 $ 16,871.2 $ 15,082.4 (1) In anticipation of the separation and distribution of Vestis, the Uniform legal entity executed a cash dividend to Aramark Corporate of approximately $1.5 billion, resulting in an increase of identifiable assets within Corporate. |
Schedule of Revenue by Geographic Areas | The following geographic data include revenue generated by subsidiaries within that geographic area and net property and equipment based on physical location (in millions): Fiscal Year Ended Revenue September 29, 2023 September 30, 2022 October 1, 2021 United States $ 14,050.3 $ 12,277.0 $ 8,947.8 Foreign 4,803.6 4,049.6 3,148.2 $ 18,853.9 $ 16,326.6 $ 12,096.0 |
Schedule of Net Property and Equipment by Geographic Areas | Property and Equipment, net September 29, 2023 September 30, 2022 United States $ 1,798.7 $ 1,777.7 Foreign 291.8 254.3 $ 2,090.5 $ 2,032.0 |
Nature of Business, Basis of _4
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands | 2 Months Ended | 12 Months Ended | |||||
Sep. 22, 2023 USD ($) | May 16, 2023 USD ($) | Apr. 06, 2023 USD ($) | Nov. 21, 2023 USD ($) | Sep. 29, 2023 USD ($) segment country | Sep. 30, 2022 USD ($) | Oct. 01, 2021 USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Number of countries in which entity operates | country | 14 | ||||||
Number of reportable segments | segment | 3 | ||||||
Foreign currency transaction loss | $ 10,400 | $ 3,500 | $ 1,800 | ||||
Cash and cash equivalents | 1,963,139 | 329,452 | |||||
Inventory valuation reserves | 21,000 | 51,300 | |||||
Inventory write-down | 19,600 | 25,400 | |||||
Depreciation | 371,700 | 367,100 | 378,300 | ||||
Asset write-downs | 37,563 | 0 | 0 | ||||
Equity Securities, FV-NI | 99,300 | 224,500 | |||||
Pre-tax gain on sale of equity investment | $ 51,800 | $ (1,100) | 377,100 | ||||
Gain on sale of this equity investment | 278,700 | ||||||
Equity Securities without readily determinable fair value, amount | 85,100 | 180,500 | |||||
Proceeds from sale of equity investments | $ 51,900 | 98,200 | 685,048 | 0 | 0 | ||
Loss on sale of equity investment, net of tax | $ 2,200 | ||||||
Gain on Equity Investments, net | (427,803) | 0 | (137,934) | ||||
Deferred income taxes and other liabilities | 1,161,805 | 1,106,587 | |||||
Total future minimum lease payments | 193,321 | ||||||
Payments related to tax withholding for share-based compensation | $ 31,300 | 17,800 | 24,500 | ||||
AIM Services Co., Ltd | AIM Services Co., Ltd | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Ownership percentage | 50% | 50% | |||||
Proceeds from sale of equity method investments | $ 535,000 | ||||||
Captive | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents | $ 32,800 | 23,100 | |||||
Cost of services provided (exclusive of depreciation and amortization) | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
CARES Act. COVID-19 labor related credits | 15,100 | ||||||
Property and Equipment and Long-term Borrowings | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Total future minimum lease payments | 47,500 | 35,800 | $ 36,000 | ||||
Prepaid expenses and other current assets | Captive | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Investment at cost | 110,700 | 78,200 | |||||
Deferred Income Taxes and Other Noncurrent Liabilities | CARES Act | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Payment of deferred social security taxes | 64,200 | ||||||
Deferred income taxes and other liabilities | 64,200 | ||||||
Accounts Receivable | CARES Act Receivables | Government | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
CARES act. receivables | 20,400 | ||||||
FSS United States and Uniform | Cost of services provided (exclusive of depreciation and amortization) | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Asset write-downs | 26,700 | ||||||
CARES Act. COVID-19 labor related credits | 37,000 | 155,300 | |||||
Uniform | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Restructuring charges | 51,100 | 9,300 | |||||
Uniform | Cost of services provided (exclusive of depreciation and amortization) | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
CARES Act. COVID-19 labor related credits | 400 | $ 17,900 | |||||
Uniform | Subsequent Event | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Restructuring charges | $ 20,000 | ||||||
Right of Use Assets | FSS United States | Cost of services provided (exclusive of depreciation and amortization) | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Asset write-downs | 8,600 | ||||||
Right of Use Assets | Uniform | Cost of services provided (exclusive of depreciation and amortization) | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Asset write-downs | 7,100 | ||||||
Leasehold Improvements | FSS United States | Cost of services provided (exclusive of depreciation and amortization) | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Asset write-downs | $ 10,400 | ||||||
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 | ||||||
Other Assets | Uniform | Cost of services provided (exclusive of depreciation and amortization) | |||||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||||
Asset write-downs | $ 600 |
Nature of Business, Basis of _5
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net income (loss) | $ 673,530 | $ 194,177 | $ (92,219) |
Pension plan adjustments, Pre-Tax Amount | (7,960) | 26,184 | 63,959 |
Pension plan adjustments, Tax Effect | 929 | (9,071) | (15,391) |
Pension plan adjustments, After-Tax Amount | (7,031) | 17,113 | 48,568 |
Foreign currency translation adjustments, Pre-Tax Amount | 28,136 | (96,783) | 7,383 |
Foreign currency translation adjustments, Tax Effect | (7,863) | 10,407 | 1,542 |
Foreign currency translation adjustments, After-Tax Amount | 20,273 | (86,376) | 8,925 |
Unrealized gains arising during the period, Pre-Tax Amount | 51,541 | 193,616 | 1,228 |
Unrealized gains arising during the period, Tax Effect | (13,401) | (50,340) | (319) |
Unrealized gains arising during the period, After-Tax Amount | 38,140 | 143,276 | 909 |
Reclassification adjustments, Pre-Tax Amount | (59,117) | 27,970 | 50,595 |
Reclassification adjustments, Tax Effect | 15,371 | (7,272) | (13,155) |
Reclassification adjustments, After-Tax Amount | (43,746) | 20,698 | 37,440 |
Share of equity investee's comprehensive income (loss), Pre-Tax Amount | 10,616 | 1,729 | 3,405 |
Share of equity investee's comprehensive income (loss), Tax Effect | (4,918) | 0 | 0 |
Share of equity investee's comprehensive income (loss), After-Tax Amount | 5,698 | 1,729 | 3,405 |
Other comprehensive income (loss), Pre-Tax Amount | 23,216 | 152,716 | 126,570 |
Other comprehensive income (loss), Tax Effect | (9,882) | (56,276) | (27,323) |
Other comprehensive income, net of tax | 13,334 | 96,440 | 99,247 |
Comprehensive income | 686,864 | 290,617 | 7,028 |
Less: Net loss attributable to noncontrolling interests | (578) | (307) | (1,386) |
Comprehensive income attributable to Aramark stockholders | $ 687,442 | $ 290,924 | $ 8,414 |
Nature of Business, Basis of _6
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Pension plan adjustments | $ (14,241) | $ (7,210) |
Foreign currency translation adjustments | (193,115) | (213,388) |
Cash flow hedges | 109,119 | 114,725 |
Share of equity investee's accumulated other comprehensive loss | 0 | (5,698) |
Accumulated other comprehensive income (loss), net of tax | $ (98,237) | $ (111,571) |
Nature of Business, Basis of _7
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Components of Inventories (Details) | Sep. 29, 2023 | Sep. 30, 2022 |
Components of Inventories [Line Items] | ||
Percentage of inventory | 100% | 100% |
Food | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 66.90% | 64% |
Career apparel and linens | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 28.60% | 31.70% |
Parts, supplies and novelties | ||
Components of Inventories [Line Items] | ||
Percentage of inventory | 4.50% | 4.30% |
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 | Sep. 29, 2023 | Sep. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid Insurance | $ 21,573 | $ 15,192 |
Prepaid Taxes and Licenses | 13,575 | 11,087 |
Current Income Tax Asset | 10,198 | 10,842 |
Marketable Securities | 110,714 | 78,204 |
Other Prepaid Expenses | 158,703 | 146,870 |
Prepayments and other current assets | $ 314,763 | $ 262,195 |
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 | Sep. 29, 2023 | Sep. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Costs to fulfill - Client | $ 92,458 | $ 97,830 |
Cost to fulfill - Rental Merchandise in-service | 366,677 | 359,657 |
Long-term receivables | 24,403 | 26,412 |
Miscellaneous investments | 184,955 | 405,463 |
Computer software costs, net | 202,665 | 199,521 |
Interest rate swap agreements | 147,458 | 149,755 |
Employee sales commissions | 138,400 | 131,443 |
Other | 150,926 | 167,325 |
Other Assets | $ 1,307,942 | $ 1,537,406 |
Nature of Business, Basis of_10
Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Other Assets - Footnotes (Details) - Computer Software $ in Millions | 12 Months Ended |
Sep. 29, 2023 USD ($) | |
Schedule of Investments [Line Items] | |
Impairment of intangible asset | $ 8.2 |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of services provided (exclusive of depreciation and amortization) |
Minimum | |
Schedule of Investments [Line Items] | |
Intangible asset, useful life | 3 years |
Maximum | |
Schedule of Investments [Line Items] | |
Intangible asset, useful life | 10 years |
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 | Sep. 29, 2023 | Sep. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Deferred income | $ 360,936 | $ 346,954 |
Accrued client expenses | 212,303 | 172,894 |
Accrued taxes | 91,971 | 58,988 |
Accrued insurance and interest | 194,830 | 184,676 |
Other | 501,826 | 408,559 |
Accrued expenses and other current liabilities | 1,361,866 | 1,172,071 |
Consideration received from customers prior to service being performed | 340,600 | 324,500 |
Consideration received from vendors prior to goods being consumed | $ 20,300 | $ 22,400 |
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 | Sep. 29, 2023 | Sep. 30, 2022 | Jun. 02, 2022 | Jun. 04, 2021 |
Loss Contingencies [Line Items] | ||||
Deferred income taxes | $ 610,470 | $ 501,404 | ||
Deferred compensation | 211,892 | 211,703 | ||
Pension-related liabilities | 11,205 | 11,775 | ||
Insurance reserves | 147,641 | 141,104 | ||
Other noncurrent liabilities | 180,597 | 240,601 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | 1,161,805 | 1,106,587 | ||
Union Supply Group, Inc | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration | $ 40,200 | |||
Union Supply Group, Inc | Fair Value Disclosure | Financial Assets and Liabilities Measured on a Recurring Basis | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration | 8,400 | 45,800 | ||
Next Level Hospitality | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration | $ 78,400 | |||
Next Level Hospitality | Fair Value Disclosure | Financial Assets and Liabilities Measured on a Recurring Basis | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration | $ 0 | $ 48,400 |
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 | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Interest paid | $ 410.5 | $ 333.3 | $ 369.7 |
Income taxes paid (refunded) | $ 47 | $ 16.2 | $ (104.9) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 02, 2022 | Jun. 04, 2021 | Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 5,579,529 | $ 5,515,124 | |||
Union Supply Group, Inc | |||||
Business Acquisition [Line Items] | |||||
Consideration paid | $ 199,600 | ||||
Contingent consideration | 40,200 | ||||
Goodwill | 56,900 | ||||
Goodwill, expected tax deductible amount | $ 0 | ||||
Next Level Hospitality | |||||
Business Acquisition [Line Items] | |||||
Consideration paid | $ 226,100 | ||||
Contingent consideration | 78,400 | ||||
Goodwill | $ 123,600 | ||||
Other Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Consideration paid | $ 50,200 | $ 140,400 | $ 39,700 | ||
AmeriPride and Avendra | |||||
Business Acquisition [Line Items] | |||||
Acquisition related costs | $ 22,200 |
Acquisitions - Assets and Liabi
Acquisitions - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jun. 02, 2022 | Jun. 04, 2021 |
Union Supply Group, Inc | ||
Assets [Abstract] | ||
Current assets | $ 102,925 | |
Noncurrent assets | 208,181 | |
Total assets | 311,106 | |
Liabilities [Abstract] | ||
Current liabilities | 24,308 | |
Noncurrent liabilities | 87,171 | |
Total liabilities | $ 111,479 | |
Next Level Hospitality | ||
Assets [Abstract] | ||
Current assets | $ 18,088 | |
Noncurrent assets | 307,291 | |
Total assets | 325,379 | |
Liabilities [Abstract] | ||
Current liabilities | 50,956 | |
Noncurrent liabilities | 48,323 | |
Total liabilities | $ 99,279 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 02, 2022 | Jun. 04, 2021 | Sep. 29, 2023 | Sep. 30, 2022 | |
Trade name | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 14.5 | $ 56.3 | ||
Union Supply Group, Inc | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 125.3 | |||
Union Supply Group, Inc | Customer relationship assets | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 82.3 | |||
Weighted-Average Estimated Useful Life (in years) | 15 years | |||
Union Supply Group, Inc | Trade name | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 43 | |||
Weighted-Average Estimated Useful Life (in years) | 15 years | |||
Next Level Hospitality | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 182.5 | |||
Next Level Hospitality | Customer relationship assets | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 133 | |||
Weighted-Average Estimated Useful Life (in years) | 15 years | |||
Next Level Hospitality | Trade name | ||||
Business Acquisition [Line Items] | ||||
Estimated Fair Value | $ 49.5 | |||
Weighted-Average Estimated Useful Life (in years) | 15 years |
Severance - Narrative (Details)
Severance - Narrative (Details) - USD ($) | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Accrued Payroll and Related Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | $ 40,400,000 | ||
Uniform | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | $ 9,000,000 | ||
Unpaid obligations related to this severance | 0 | ||
COVID-Related Severance | Accrued Payroll and Related Expenses | Employee Severance and Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | $ (16,300,000) | ||
Unpaid obligations related to this severance | 0 | ||
Cost of Services Provided (Exclusive of Depreciation and Amortization) | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | $ 41,700,000 | $ 19,600,000 |
Severance - Severance Charges b
Severance - Severance Charges by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Uniform | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | $ 9 | ||
Cost of Services Provided (Exclusive of Depreciation and Amortization) | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | $ 41.7 | $ 19.6 | |
Cost of Services Provided (Exclusive of Depreciation and Amortization) | Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 0.6 | ||
Cost of Services Provided (Exclusive of Depreciation and Amortization) | FSS United States | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 3.3 | 7.7 | |
Cost of Services Provided (Exclusive of Depreciation and Amortization) | FSS International | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | 31.2 | $ 11.9 | |
Cost of Services Provided (Exclusive of Depreciation and Amortization) | Uniform | Operating Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance charges | $ 6.6 |
Severance - Unpaid Obligations
Severance - Unpaid Obligations for Severance and Related Costs (Details) - Accrued Payroll and Related Expenses $ in Millions | 12 Months Ended |
Sep. 29, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Severance and Related Costs Accrual Beginning Balance | $ 16.8 |
Charges (Reversals) | 40.4 |
Payments and Other | (35.1) |
Severance and Related Costs Accrual Ending Balance | 22.1 |
Employee Severance and Other Costs | Fiscal 2022 Severance | |
Restructuring Reserve [Roll Forward] | |
Severance and Related Costs Accrual Beginning Balance | 16.8 |
Charges (Reversals) | (1.3) |
Payments and Other | (14.7) |
Severance and Related Costs Accrual Ending Balance | 0.8 |
Employee Severance and Other Costs | Fiscal 2023 Severance | |
Restructuring Reserve [Roll Forward] | |
Severance and Related Costs Accrual Beginning Balance | 0 |
Charges (Reversals) | 41.7 |
Payments and Other | (20.4) |
Severance and Related Costs Accrual Ending Balance | $ 21.3 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 115.5 | $ 108.7 | $ 116.5 |
Customer-Related Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Fair Value | $ 20.7 | 165.5 | |
Weighted-Average Estimated Useful Life (in years) | 14 years | ||
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Fair Value | $ 14.5 | $ 56.3 |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets - Schedule of Goodwill Assets by Segment (Details) $ in Thousands | 12 Months Ended |
Sep. 29, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 5,515,124 |
Acquisitions | 42,890 |
Translation & Other | 21,515 |
Balance at the end of the period | 5,579,529 |
FSS United States | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 4,150,266 |
Acquisitions | 14,120 |
Translation & Other | 6 |
Balance at the end of the period | 4,164,392 |
FSS International | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 401,483 |
Acquisitions | 28,770 |
Translation & Other | 21,341 |
Balance at the end of the period | 451,594 |
Career apparel and linens | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 963,375 |
Acquisitions | 0 |
Translation & Other | 168 |
Balance at the end of the period | $ 963,543 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets - Schedule of other intangible assets (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Other Intangible Assets | ||
Gross Amount | $ 2,654,688 | $ 2,608,324 |
Accumulated Amortization | (611,606) | (494,598) |
Net Amount | 2,043,082 | 2,113,726 |
Customer relationship assets | ||
Other Intangible Assets | ||
Gross Amount | 1,500,640 | 1,474,588 |
Accumulated Amortization | (595,514) | (487,877) |
Net Amount | 905,126 | 986,711 |
Trade name | ||
Other Intangible Assets | ||
Gross Amount | 1,154,048 | 1,133,736 |
Accumulated Amortization | (16,092) | (6,721) |
Net Amount | $ 1,137,956 | $ 1,127,015 |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets - Schedule of expected amortization expense (Details) $ in Thousands | Sep. 29, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 117,119 |
2025 | 117,231 |
2026 | 113,199 |
2027 | 104,559 |
2028 | $ 98,385 |
Borrowings - Schedule of Long-t
Borrowings - Schedule of Long-term Borrowings (Details) | Sep. 29, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jan. 18, 2018 | Mar. 27, 2017 EUR (€) | Mar. 22, 2017 USD ($) |
Debt Instrument [Line Items] | |||||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-Term Borrowings | ||||
Finance leases | $ 164,810,000 | $ 147,373,000 | |||
Other | 15,201,000 | 19,898,000 | |||
Debt and Lease Obligation | 8,263,514,000 | 7,410,907,000 | |||
Less—current portion | (1,596,942,000) | (65,047,000) | |||
Long-Term Borrowings | 6,666,572,000 | 7,345,860,000 | |||
Foreign | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 685,700,000 | ||||
Receivables Facility, Due July 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 104,935,000 | |||
Secured Debt | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 170,759,000 | 90,897,000 | |||
Secured Debt | Term Loan Facility Due March 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 1,661,611,000 | |||
Secured Debt | Term Loan Facility Due April 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 258,060,000 | 334,135,000 | |||
Secured Debt | Term Loan Facility Due January 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 835,631,000 | 834,619,000 | |||
Secured Debt | Term Loan Facility Due April 2028 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 724,393,000 | 723,170,000 | |||
Secured Debt | Term Loan Facility Due June 2030 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 1,078,588,000 | 0 | |||
Secured Debt | Term Loan Facility Due September 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 795,223,000 | 0 | |||
Secured Debt | Term Loan Facility Due September 2028 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 693,720,000 | 0 | |||
Senior Notes | 5.000% Senior Notes, Due April 2025 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5% | 5% | |||
Long-term debt | $ 549,348,000 | 547,981,000 | $ 600,000,000 | ||
Senior Notes | 3.125% Senior Notes, Due April 2025 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.125% | 3.125% | |||
Long-term debt | $ 342,718,000 | 317,204,000 | € 325,000,000 | ||
Senior Notes | 6.375% Senior Notes, Due May 01, 2025 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 6.375% | ||||
Long-term debt | $ 1,492,153,000 | 1,487,593,000 | |||
Senior Notes | 5.000% Senior Notes, Due February 2028 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5% | 5% | |||
Long-term debt | $ 1,142,910,000 | $ 1,141,491,000 |
Borrowings - Senior Secured Cre
Borrowings - Senior Secured Credit Agreement Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Sep. 29, 2023 USD ($) | Sep. 29, 2023 CAD ($) | Sep. 29, 2023 EUR (€) | Sep. 30, 2022 USD ($) | |
Secured Debt | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, minimum interest rate | 0% | 0% | 0% | |
Effective rate | 0.625% | 0.625% | 0.625% | |
Secured Debt | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, minimum interest rate | 0% | 0% | 0% | |
Effective rate | 1.625% | 1.625% | 1.625% | |
Secured Debt | Sterling Overnight Index Average | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, minimum interest rate | 0% | 0% | 0% | |
Effective rate | 1.6576% | 1.6576% | 1.6576% | |
Secured Debt | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.125% | |||
Secured Debt | Minimum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.125% | |||
Secured Debt | Minimum | Sterling Overnight Index Average | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.1576% | |||
Secured Debt | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.625% | |||
Secured Debt | Maximum | Eurocurrency And Bankers' Acceptance Borrowings, And Letters of Credit Fees | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.625% | |||
Secured Debt | Maximum | Sterling Overnight Index Average | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.6576% | |||
Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | Secured Debt | Minimum | ||||
Debt Instrument [Line Items] | ||||
Unused capacity, commitment fee percentage | 0.15% | |||
Senior Secured Revolving Credit Facility, Amounts Due March 28, 2022 | Secured Debt | Maximum | ||||
Debt Instrument [Line Items] | ||||
Unused capacity, commitment fee percentage | 0.30% | |||
Term Loan Facility Due January 2027 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 835,631,000 | $ 834,619,000 | ||
Term Loan Facility Due January 2027 | US Denominated B-4 Term Loan, Due 2027 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 835,600,000 | |||
Term Loan Facility Due 2028 | US Denominated Term B-5 Loan, Due 2028 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 724,400,000 | |||
Term Loan Facility Due April 2026 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 258,060,000 | 334,135,000 | ||
Term Loan Facility Due April 2026 | Canadian Denominated Term Loan, Aramark Canada Ltd. Due 2022 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 162,800,000 | $ 221 | ||
Term Loan Facility Due April 2026 | Euro Denominated Term Loan, Aramark Investments Liminted, Due 2022 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | € | € 90.2 | |||
Term Loan Facility Due October 2023 | Euro Denominated Term Loan, Aramark Investments Liminted, Due 2022 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 95,300,000 | |||
Term Loan Facility Due October 2023 | Euro Term A-1 Loans, Due 2023 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 23,800,000 | € 22.5 | ||
Revolving Credit Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 170,759,000 | $ 90,897,000 | ||
Revolving Credit Facility | Senior Secured Revolving Credit Facility, Amounts Due October 2023 and April 2026 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 1,200,000,000 | |||
Revolving Credit Facility | Senior Secured Revolving Credit Facility, Amounts Due October 2023 and April 2026 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity | 953,800,000 | |||
Revolving Credit Facility | Senior Secured Revolving Credit Facility | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 150,000,000 | |||
Revolving Credit Facility | Senior Secured Revolving Credit Facility | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 250,000,000 | |||
Term Loan Facility, US Term Loan B-4 Due 2027 | Secured Debt | Adjusted Term Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, minimum interest rate | 0% | 0% | 0% | |
Term Loan Facility, US Term Loan B-4 Due 2027 | Secured Debt | Minimum | Adjusted Term Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Term Loan Facility, US Term Loan B-4 Due 2027 | Secured Debt | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Term Loan Facility, US Term Loan B-6 Due 2030 | US Denominated Term B-6 Loans, Due 2030 | Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,078,600,000 | |||
Term Loan Facility, US Term Loan B-5 Due 2028 and US Term Loan B-6 Due 2030 | Secured Debt | Minimum | Adjusted Term Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
Term Loan Facility, US Term Loan B-5 Due 2028 and US Term Loan B-6 Due 2030 | Secured Debt | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Term Loan Facility, US Term Loan B-5 Due 2028 and US Term Loan B-6 Due 2030 | Term B-4 Loans Due 2027 | Secured Debt | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0% | |||
Term Loan Facility, US Term Loan B-5 Due 2028 and US Term Loan B-6 Due 2030 | Term B-5 Loans Due 2028 | Secured Debt | Adjusted Term Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, minimum interest rate | 0% | 0% | 0% |
Borrowings - Fiscal 2023 Refina
Borrowings - Fiscal 2023 Refinancing Transactions Narrative (Details) - Secured Debt $ in Thousands, ¥ in Millions | 12 Months Ended | ||||||
Jun. 29, 2023 | Jun. 22, 2023 USD ($) | Sep. 29, 2023 USD ($) | May 31, 2023 USD ($) | Apr. 17, 2023 USD ($) | Apr. 17, 2023 JPY (¥) | Sep. 30, 2022 USD ($) | |
Interest and Other Financing Costs, Net | |||||||
Debt Instrument [Line Items] | |||||||
Write off of deferred debt issuance cost | $ 2,500 | ||||||
Term B-6 Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs, net | $ 8,200 | ||||||
Debt instrument, original issue discount | 11,000 | ||||||
Term Loan Facility Due March 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 0 | $ 1,661,611 | |||||
Term Loan Facility Due March 2025 | United States Term B-3 Loans Due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 100,000 | $ 468,000 | |||||
Term Loan Facility Due April 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 258,060 | $ 334,135 | |||||
Term Loan Facility Due April 2026 | YEN Denominated Term Loan, Aramark Services, Inc. Due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 63,000 | ¥ 8,409 | |||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,100,000 | ||||||
Debt instrument, periodic payment, principal | 2,750 | ||||||
Debt instrument, annual principal payment | $ 1,025,750 | ||||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | One Month Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.11448% | 0.11448% | |||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | Three Month Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.26161% | 0.26161% | |||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | Six Month Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.42826% | 0.42826% | |||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1% | ||||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | Margin Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
Term Loan Facility, US Term Loan B-6 Due 2030 | Term B-6 Loan | Base Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% |
Borrowings - Fiscal 2021 Refina
Borrowings - Fiscal 2021 Refinancing Transactions Narrative (Details) - Secured Debt € in Millions, ¥ in Millions, $ in Millions | 12 Months Ended | |||||
Oct. 01, 2021 USD ($) | Apr. 06, 2021 USD ($) | Oct. 01, 2021 USD ($) | Apr. 06, 2021 CAD ($) | Apr. 06, 2021 EUR (€) | Apr. 06, 2021 JPY (¥) | |
United States Dollar and Canadian Dollar Term Loan Facilities | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 194,100,000 | |||||
Revolving Credit Facility | Amendment No. 11 Amended Senior Secured Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility increase | $ 200,000,000 | |||||
Maximum borrowing capacity | 1,153,100,000 | |||||
Revolving Credit Facility | Canadian Term A-2 and A-3 Loan, Due April 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 276.9 | |||||
Revolving Credit Facility | Euro Term A-2 Loan, Due April 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | € | € 78.8 | |||||
Revolving Credit Facility | Yen Term C-1 Loans, Due April 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | ¥ | ¥ 9,343.3 | |||||
Revolving Credit Facility | U.S. Term B-2 Loan And U.S. Term B-5 Loans, Due April 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 833,000,000 | |||||
Revolving Credit Facility | 2018 Tranche Revolving Commitments, Due October 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, fair value outstanding | $ 53,700,000 | |||||
Revolving Credit Facility | Euro Term A-1 Loan, Due October 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, fair value outstanding | € | € 33.6 | |||||
Revolving Credit Facility | Canadian Term A-2 Loan, Due October 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, fair value outstanding | $ 27.1 | |||||
Revolving Credit Facility | U.S. Term B-5 Loan, Due April 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Amortization of debt issuance costs | $ 16,800,000 | $ 16,800,000 | ||||
Revolving Credit Facility | U.S. Term B-2 Loan | ||||||
Debt Instrument [Line Items] | ||||||
Write off of deferred debt issuance cost | $ 2,700,000 |
Borrowings - Incremental Facili
Borrowings - Incremental Facilities, Prepayments and Amortization Narrative (Details) - Secured Debt € in Millions, ¥ in Millions, $ in Millions | 12 Months Ended | ||||
Sep. 29, 2023 USD ($) | Sep. 29, 2023 CAD ($) | Sep. 29, 2023 EUR (€) | Apr. 06, 2021 EUR (€) | Apr. 06, 2021 JPY (¥) | |
Debt Instrument [Line Items] | |||||
Consolidated secured debt ratio | 5.125 | 5.125 | 5.125 | ||
New Canadian Term A-3 Loan, Due April 2026 | |||||
Debt Instrument [Line Items] | |||||
Quarterly principal amounts due Period 1 | $ 6.9 | ||||
Quarterly principal amounts due Period 2 | 10.4 | ||||
Principal amount due at maturity | $ 159.2 | ||||
Euro Term A-2 Loan, Due April 2026 | |||||
Debt Instrument [Line Items] | |||||
Quarterly principal amounts due Period 1 | € | € 1.5 | ||||
Quarterly principal amounts due Period 2 | € | 2 | ||||
Quarterly principal amounts due Period 3 | € | 3 | ||||
Principal amount due at maturity | € | € 45.3 | ||||
U.S. Term B-5 Loan, Due April 2028 | |||||
Debt Instrument [Line Items] | |||||
Principal amount due at maturity | $ 730,500,000 | ||||
Revolving Credit Facility | 2017 Amendment Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,400,000,000 | ||||
Revolving Credit Facility | 2017 Amendment Agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Consolidated secured debt ratio | 3 | 3 | 3 | ||
Revolving Credit Facility | Euro Term A-2 Loan, Due April 2026 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | € | € 78.8 | ||||
Revolving Credit Facility | Yen Term C-1 Loans, Due April 2026 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | ¥ | ¥ 9,343.3 | ||||
Line of Credit | 2017 Amendment Agreement | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit agreement requires prepayment of outstanding loans with all net cash proceeds of all nonordinary course asset sales | 100% | ||||
Senior secured credit agreement requires prepayment with all net cash proceeds of any incurrence of debt | 100% | ||||
Line of Credit | 2017 Amendment Agreement | Aramark Services, Inc. | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit agreement requires prepayment of outstanding loans with percent of annual excess cash flow, initial rate | 50% | ||||
Senior secured credit agreement requires prepayment of outstanding loans with percent of annual excess cash flow, stepdown rate | 25% | ||||
Senior secured credit agreement requires prepayment of outstanding loans with percent of annual excess cash flow, final stepdown rate | 0% | ||||
Line of Credit | 2017 Amendment Agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Agreement terms, prepayment of outstanding term loans, annual cash flow threshold | $ 100,000,000 | ||||
Line of Credit | 2017 Amendment Agreement | Minimum | Aramark Services, Inc. | |||||
Debt Instrument [Line Items] | |||||
Agreement terms, prepayment of outstanding term loans, annual cash flow threshold | $ 10,000,000 |
Borrowings - Guarantees and Cer
Borrowings - Guarantees and Certain Covenants (Details) | 12 Months Ended |
Sep. 29, 2023 | |
Foreign Subsidiaries | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 100% |
Foreign Subsidiaries | Common Stock | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 65% |
Foreign Subsidiaries | Nonvoting Common Stock | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 100% |
Aramark Services, Inc. (Issuer) | |
Debt Instrument [Line Items] | |
Line of credit facility, collateral, capital stock | 100% |
Secured Debt | |
Debt Instrument [Line Items] | |
Consolidated secured debt ratio | 5.125 |
Covenant, interest coverage ratio, actual | 3.63 |
Covenant, interest coverage ratio | 2 |
Secured Debt | Aramark Services, Inc. (Issuer) | |
Debt Instrument [Line Items] | |
Covenant, interest coverage ratio, actual | 1.76 |
Borrowings - Uniform Credit Agr
Borrowings - Uniform Credit Agreement (Details) | 12 Months Ended | |
Sep. 29, 2023 USD ($) | Mar. 31, 2025 | |
Uniform Segment's Domestic Subsidiaries | ||
Debt Instrument [Line Items] | ||
Line of credit facility, collateral, capital stock | 100% | |
Uniform Segment's Foreign Subsidiaries | ||
Debt Instrument [Line Items] | ||
Line of credit facility, collateral, capital stock | 65% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Consolidated secured debt ratio | 5.125 | |
Covenant, interest coverage ratio | 2 | |
US Denominated A-1 Term Loan, Due 2025 and US Denominated A-2 Term Loan, Due 2028 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ 11,100,000 | |
Uniform Credit Agreement | Secured Debt | Minimum | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee percentage | 0.20% | |
Covenant, interest coverage ratio | 2 | |
Uniform Credit Agreement | Secured Debt | Maximum | ||
Debt Instrument [Line Items] | ||
Unused capacity, commitment fee percentage | 0.30% | |
Consolidated secured debt ratio | 5.25 | |
Uniform Credit Agreement | Secured Debt | Maximum | Forecast | ||
Debt Instrument [Line Items] | ||
Consolidated secured debt ratio | 4.5 | |
Uniform Credit Agreement | Secured Debt | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Effective rate | 7.74% | |
Uniform Credit Agreement | Secured Debt | Minimum | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0% | |
Uniform Credit Agreement | US Denominated A-1 Term Loan, Due 2025 and US Denominated A-2 Term Loan, Due 2028 | Secured Debt | Minimum | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Uniform Credit Agreement | US Denominated A-1 Term Loan, Due 2025 and US Denominated A-2 Term Loan, Due 2028 | Secured Debt | Maximum | Secured Overnight Financing Rate (SOFR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | |
Uniform Credit Agreement | US Denominated A-1 Term Loan, Due 2025 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 800,000,000 | |
Uniform Credit Agreement | US Denominated A-2 Term Loan, Due 2028 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 700,000,000 | |
Debt instrument, covenant, quarterly installment payments | 8,800,000 | |
Principal amount due at maturity | 533,800,000 | |
Uniform Credit Agreement | Uniform Credit Agreement, Sublimit | Secured Debt | Foreign Borrower | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 100,000,000 | |
Uniform Credit Agreement | Uniform Credit Agreement, Sublimit | Swingline Loans | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | 50,000,000 | |
Uniform Credit Agreement | Uniform Credit Agreement, Sublimit | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 30,000,000 | |
Uniform Credit Agreement | 2023 Amendment Agreement | ||
Debt Instrument [Line Items] | ||
Senior secured credit agreement requires prepayment of outstanding loans with all net cash proceeds of all nonordinary course asset sales | 100% | |
EBITDA, percentage | 7.50% | |
Uniform Credit Agreement | 2023 Amendment Agreement | Aramark Services, Inc. | ||
Debt Instrument [Line Items] | ||
Line of credit facility, agreement terms, prepayment of outstanding term loans, casualty events, percentage | 100% | |
Uniform Credit Agreement | 2023 Amendment Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Agreement terms, prepayment of outstanding term loans, annual cash flow threshold | $ 30,000,000 | |
Uniform Credit Agreement | 2023 Amendment Agreement | Minimum | Aramark Services, Inc. | ||
Debt Instrument [Line Items] | ||
Agreement terms, prepayment of outstanding term loans, annual cash flow threshold | $ 10,000,000 | |
Uniform Credit Agreement | 2017 Amendment Agreement | ||
Debt Instrument [Line Items] | ||
Senior secured credit agreement requires prepayment with all net cash proceeds of any incurrence of debt | 100% | |
Uniform Credit Agreement | Revolving Credit Facility, US and Canadian Dollar Denominated | Secured Debt | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 300,000,000 |
Borrowings - Senior Notes Narra
Borrowings - Senior Notes Narrative (Details) | 12 Months Ended | ||||||||
Jun. 02, 2021 USD ($) | Sep. 29, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 15, 2023 USD ($) | Oct. 01, 2021 USD ($) | Apr. 27, 2020 USD ($) | Jan. 18, 2018 USD ($) | Mar. 27, 2017 EUR (€) | Mar. 22, 2017 USD ($) | |
6.375% Senior Notes, Due May 01, 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 1,500,000,000 | $ 1,500,000,000 | |||||||
Stated interest rate | 6.375% | ||||||||
Long-term debt | $ 1,492,153,000 | $ 1,487,593,000 | |||||||
Optional redemption price, percentage | 101% | ||||||||
6.375% Senior Notes, Due May 01, 2025 | Senior Notes | Long-term borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization of debt issuance costs | $ 22,300,000 | ||||||||
5.000% Senior Notes, Due February 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 1,150,000,000 | ||||||||
Stated interest rate | 5% | 5% | |||||||
Long-term debt | $ 1,142,910,000 | 1,141,491,000 | |||||||
5.000% Senior Notes, Due February 2028 | Senior Notes | Long-term borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization of debt issuance costs | $ 14,200,000 | ||||||||
5.000% Senior Notes, Due April 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 5% | 5% | |||||||
Long-term debt | $ 549,348,000 | 547,981,000 | $ 600,000,000 | ||||||
Repayments of debt | 48,500,000 | ||||||||
3.125% Senior Notes, Due April 2025 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 3.125% | 3.125% | |||||||
Long-term debt | $ 342,718,000 | 317,204,000 | € 325,000,000 | ||||||
5.000% Senior Notes, Due April 2025 And 3.125% Senior Notes Due April 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Optional redemption price, percentage | 101% | ||||||||
4.750% Senior Notes, Due June 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 500,000,000 | ||||||||
Stated interest rate | 4.75% | ||||||||
Redemption price, percentage | 102.375% | ||||||||
Interest and Other Financing Costs, Net | 4.750% Senior Notes, Due June 2026 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Amortization of debt issuance costs | $ 16,000,000 | ||||||||
Early repayment of senior debt | 11,900,000 | ||||||||
Write off of deferred debt issuance cost | $ 4,100,000 |
Borrowings - Receivables Facili
Borrowings - Receivables Facility (Details) - Receivables Facility | 12 Months Ended | ||
Sep. 29, 2023 financial_institution | Jul. 19, 2023 USD ($) | Jul. 18, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Number of financial institutions | financial_institution | 4 | ||
Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ | $ 600,000,000 | $ 500,000,000 |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Maturities (Details) $ in Thousands | Sep. 29, 2023 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2024 | $ 1,610,749 |
2025 | 1,832,316 |
2026 | 434,529 |
2027 | 910,182 |
2028 | 2,470,875 |
Thereafter | 1,091,650 |
Term Loan Facilities | Secured Debt | |
Debt Instrument [Line Items] | |
Debt discount | 47,100 |
Term Loan Facility, US Term Loan B-6 Due 2030 | Secured Debt | |
Debt Instrument [Line Items] | |
Unamortized discount | 10,700 |
Term Loan Facility, US Term Loan B, Due 2027 | Secured Debt | |
Debt Instrument [Line Items] | |
Unamortized discount | $ 500 |
Borrowings - Schedule of Intere
Borrowings - Schedule of Interest and Other Financing Costs Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 441,262 | $ 381,533 | $ 413,713 |
Interest income | (30,246) | (17,617) | (15,250) |
Other financing costs | 28,569 | 8,811 | 2,903 |
Total | $ 439,585 | $ 372,727 | $ 401,366 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) € in Millions, gal in Millions | 12 Months Ended | |||
Sep. 29, 2023 USD ($) gal | Sep. 30, 2022 USD ($) | Oct. 01, 2021 USD ($) | Sep. 29, 2023 EUR (€) | |
Term Loan Facility Due October 2023 | Euro Denominated Term Loan, Aramark Investments Liminted, Due 2022 | Secured Debt | ||||
Derivative [Line Items] | ||||
Long-term debt | $ 95,300,000 | |||
Term Loan Facility Due April 2026 | Secured Debt | ||||
Derivative [Line Items] | ||||
Long-term debt | 258,060,000 | $ 334,135,000 | ||
Term Loan Facility Due April 2026 | Euro Denominated Term Loan, Aramark Investments Liminted, Due 2022 | Secured Debt | ||||
Derivative [Line Items] | ||||
Long-term debt | € | € 90.2 | |||
Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Gain on cash flow hedge to be reclassified within twelve months | 53,700,000 | |||
Interest rate swap agreements | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | 2,200,000,000 | |||
Interest rate swap agreements | Designated as Hedging Instrument | Forward Contracts | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | 1,200,000,000 | |||
Interest rate swap agreements | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | 150,000,000 | |||
Notional amount of matured hedges | 1,600,000,000 | |||
Unrealized gain (loss) on derivatives | $ 109,100,000 | 114,700,000 | ||
Gasoline and diesel fuel agreements | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional amount, volume | gal | 6.6 | |||
Gain (loss) from change in fair value of unsettled contracts | $ 2,600,000 | $ 5,200,000 | $ 4,400,000 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Cash Flow Hedging | Interest rate swap agreements | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Interest rate swap agreements | $ 51,541 | $ 193,616 | $ 1,228 |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Derivative Instruments, Balance Sheet Presentation (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Designated as Hedging Instrument | ||
Derivative instruments | ||
Fair value of derivative assets | $ 147,458 | $ 155,033 |
Designated as Hedging Instrument | Interest rate swap agreements | Prepayments and other current assets | ||
Derivative instruments | ||
Fair value of derivative assets | 0 | 5,278 |
Designated as Hedging Instrument | Interest rate swap agreements | Other Assets | ||
Derivative instruments | ||
Fair value of derivative assets | 147,458 | 149,755 |
Not Designated as Hedging Instrument | ||
Derivative instruments | ||
Fair value of derivative liabilities | 1 | 2,631 |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | Accounts payable | ||
Derivative instruments | ||
Fair value of derivative liabilities | $ 1 | $ 2,631 |
Derivative Instruments - Sche_3
Derivative Instruments - Schedule Summarizes the Location of (Gain) Loss Reclassified from AOCI Into Earnings for Derivatives Designated as Hedging Instruments and the Location of (Gain) Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Derivative instruments | |||
Reclassification adjustments | $ (59,117) | $ 27,970 | $ 50,595 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of services provided (exclusive of depreciation and amortization) | Cost of services provided (exclusive of depreciation and amortization) | Cost of services provided (exclusive of depreciation and amortization) |
(Gain) loss reclassified recognized in income | $ (58,803) | $ 24,767 | $ 42,551 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swap agreements | Interest and Other Financing Costs, net | |||
Derivative instruments | |||
Reclassification adjustments | 59,117 | (27,970) | (50,595) |
Not Designated as Hedging Instrument | Gasoline and diesel fuel agreements | |||
Derivative instruments | |||
(Gain) loss reclassified recognized in income | $ 314 | $ (3,203) | $ (8,044) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Thousands | 12 Months Ended | |
Sep. 29, 2023 USD ($) performance_obligation | Sep. 30, 2022 USD ($) | |
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 1 month 6 days | |
Leasehold improvements in property, plant and and equipment | $ 2,090,503 | $ 2,032,045 |
Recognition of deferred income | 298,900 | |
Property, Plant and Equipment | Leasehold Improvements | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Leasehold improvements in property, plant and and equipment | $ 775,100 | $ 751,800 |
Career apparel and linens | Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Other assets, useful life | 1 year | |
Career apparel and linens | 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 | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 18,853,857 | $ 16,326,624 | $ 12,095,965 |
Total FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 14,050,300 | 12,277,000 | 8,947,800 |
FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11,721,400 | 10,030,800 | 6,809,300 |
FSS United States | Total FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11,721,400 | 10,030,800 | 6,809,300 |
FSS United States | Business & Industry | Total FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,407,200 | 1,081,200 | 695,700 |
FSS United States | Education | Total FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,437,000 | 3,161,500 | 2,124,400 |
FSS United States | Healthcare | Total FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,318,300 | 1,235,800 | 891,200 |
FSS United States | Sports, Leisure & Corrections | Total FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,537,100 | 2,722,000 | 1,511,300 |
FSS United States | Facilities & Other | Total FSS United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,021,800 | 1,830,300 | 1,586,700 |
FSS International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 4,361,800 | 3,656,400 | 2,866,200 |
FSS International | Total FSS International | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 4,361,800 | 3,656,400 | 2,866,200 |
FSS International | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,303,600 | 1,853,300 | 1,347,500 |
FSS International | Rest of World | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2,058,200 | 1,803,100 | 1,518,700 |
Career apparel and linens | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,770,700 | $ 2,639,400 | $ 2,420,500 |
Revenue Recognition - Contracte
Revenue Recognition - Contracted Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Cost of services provided (exclusive of depreciation and amortization) | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | $ 28.6 | $ 26.3 | $ 23.9 |
Cost of services provided (exclusive of depreciation and amortization) | Career Apparel and Linens | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | 343.9 | 288.5 | 274.5 |
Cost of services provided (exclusive of depreciation and amortization) | Operating Lease Right-of-Use Assets | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | 47.5 | 34.8 | 25.3 |
Depreciation and amortization | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | 17.7 | 19.5 | 20 |
Depreciation and amortization | Property, Plant and Equipment | Leasehold Improvements | |||
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization | $ 129.8 | $ 123.9 | $ 131.6 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Income (Details) - USD ($) $ in Millions | Sep. 29, 2023 | Sep. 30, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Deferred income | $ 356.1 | $ 324.5 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Sep. 29, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | |
Accrued expenses and other current liabilities | $ 0 |
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 | $ 29,300,000 |
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 | Sep. 29, 2023 | Sep. 30, 2022 |
Assets: | ||
Operating | $ 630,158 | $ 592,145 |
Finance | 152,551 | 137,550 |
Total lease assets | 782,709 | 729,695 |
Current | ||
Operating | 71,206 | 68,858 |
Finance | 31,412 | 27,430 |
Noncurrent | ||
Operating | 291,955 | 305,623 |
Finance | 133,398 | 119,943 |
Total lease liabilities | $ 527,971 | $ 521,854 |
Weighted average remaining lease term (in years) | ||
Operating leases | 7 years 1 month 6 days | 7 years 8 months 12 days |
Finance leases | 7 years 4 months 24 days | 7 years 8 months 12 days |
Weighted average discount rate | ||
Operating leases | 4.30% | 3.70% |
Finance leases | 4.40% | 4% |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Operating | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and Equipment, net | Property and Equipment, net |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term borrowings | Current maturities of long-term borrowings |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-Term Borrowings | Long-Term Borrowings |
Operating Lease Right-of-Use Assets | ||
Weighted average discount rate | ||
Long-term prepaid rent | $ 320,100 | $ 260,200 |
Leases - Schedule of Net Lease
Leases - Schedule of Net Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Operating lease cost: | |||
Fixed lease costs | $ 133,510 | $ 122,607 | $ 116,934 |
Variable lease costs | 932,225 | 774,437 | 344,130 |
Short-term lease costs | 87,962 | 71,726 | 48,288 |
Finance lease cost: | |||
Amortization of right-of-use-assets | 34,745 | 32,702 | 31,243 |
Interest on lease liabilities | 5,666 | 4,499 | 4,794 |
Net lease cost | 1,194,108 | 1,005,971 | 545,389 |
Rental expense for all operating leases | $ 903,400 | $ 745,600 | $ 325,300 |
Leases - Schedule of Cash Paid
Leases - Schedule of Cash Paid for Amounts included in Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 194,663 | $ 135,936 | $ 189,061 |
Operating cash flows from finance leases | 5,666 | 4,499 | 4,794 |
Financing cash flows from finance leases | 31,808 | 31,289 | 32,496 |
Lease assets obtained in exchange for lease obligations: | |||
Operating leases | 64,857 | 82,635 | 61,345 |
Finance leases | 47,488 | 35,839 | 36,046 |
Variable lease payment | 919,000 | 734,200 | 304,500 |
Short-term lease payments | $ 88,000 | $ 71,700 | $ 48,300 |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Operating leases | ||
2024 | $ 85,073 | |
2025 | 71,165 | |
2026 | 58,165 | |
2027 | 45,612 | |
2028 | 37,319 | |
Thereafter | 125,028 | |
Total future minimum lease payments | 422,362 | |
Less: Interest | (59,201) | |
Present value of lease liabilities | 363,161 | |
Finance leases | ||
2024 | 37,366 | |
2025 | 33,906 | |
2026 | 29,310 | |
2027 | 24,039 | |
2028 | 19,300 | |
Thereafter | 49,400 | |
Total future minimum lease payments | 193,321 | |
Less: Interest | (28,511) | |
Present value of lease liabilities | 164,810 | $ 147,373 |
Total | ||
2024 | 122,439 | |
2025 | 105,071 | |
2026 | 87,475 | |
2027 | 69,651 | |
2028 | 56,619 | |
Thereafter | 174,428 | |
Total future minimum lease payments | 615,683 | |
Less: Interest | (87,712) | |
Present value of lease liabilities | $ 527,971 |
Employee Pension and Profit S_3
Employee Pension and Profit Sharing Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | $ 120.5 | $ 122.5 | |
Actuarial losses recognized in other comprehensive loss, before tax | 7.1 | 14.6 | |
Amortization of actuarial gains (losses) recognized as net periodic pension cost | 0.4 | 4.6 | |
Expected future employer contributions during next fiscal year | 1 | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution cost recognized | 30.3 | 28.6 | $ 28.1 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution cost recognized | $ 15.3 | $ 15.1 | $ 15.2 |
Minimum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 5% | ||
Minimum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 75% | ||
Minimum | Real Estate and Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 0% | ||
Maximum | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 15% | ||
Maximum | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 95% | ||
Maximum | Real Estate and Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum target plan asset allocations | 10% |
Employee Pension and Profit S_4
Employee Pension and Profit Sharing Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 840 | $ 1,045 | $ 1,327 |
Interest cost | 6,521 | 3,887 | 4,736 |
Expected return on plan assets | $ (8,271) | $ (9,915) | $ (14,003) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling and general corporate expenses | Selling and general corporate expenses | Selling and general corporate expenses |
Settlement and curtailments | $ 0 | $ 0 | $ 61,706 |
Amortization of prior service cost | $ 26 | $ 27 | $ 32 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling and general corporate expenses | Selling and general corporate expenses | Selling and general corporate expenses |
Recognized net loss | $ 446 | $ 4,574 | $ 3,829 |
Net periodic pension (income) expense | (438) | (382) | 57,627 |
Loss on defined benefit pension plan termination | $ 0 | $ 0 | $ 60,864 |
Employee Pension and Profit S_5
Employee Pension and Profit Sharing Plans - Schedule of Defined Benefit Plans Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Change in plan assets: | |||
Fair value of plan assets, beginning | $ 161,504 | $ 239,013 | |
Foreign currency translation | 10,991 | (29,381) | |
Employer contributions | 1,184 | 5,710 | |
Employee contributions | 47 | 88 | |
Actual return on plan assets | (7,021) | (30,650) | |
Benefits paid | (8,895) | (23,276) | |
Fair value of plan assets, end | 157,810 | 161,504 | $ 239,013 |
Change in benefit obligation: | |||
Benefit obligation, beginning | 122,628 | 220,950 | |
Foreign currency translation | 7,492 | (22,871) | |
Service cost | 840 | 1,045 | 1,327 |
Interest cost | 6,521 | 3,887 | 4,736 |
Employee contributions | 47 | 88 | |
Actuarial gain | (8,162) | (57,195) | |
Benefits paid | (8,895) | (23,276) | |
Benefit obligation, ending | 120,471 | 122,628 | $ 220,950 |
Funded Status at end of year | $ 37,339 | $ 38,876 |
Employee Pension and Profit S_6
Employee Pension and Profit Sharing Plans - Schedule of Amounts Recognized in Balance Sheet Including Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Retirement Benefits [Abstract] | ||
Noncurrent benefit asset (included in Other Assets) | $ 45,443 | $ 47,436 |
Noncurrent benefit liability (included in Other Noncurrent Liabilities) | (8,104) | (8,560) |
Net actuarial loss (included in Accumulated other comprehensive loss before taxes) | $ 28,352 | $ 20,411 |
Employee Pension and Profit S_7
Employee Pension and Profit Sharing Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Assumptions Used to Calculate Pension Expense [Abstract] | ||
Discount rate | 5.10% | 2.10% |
Rate of compensation increase | 0.50% | 2.20% |
Long-term rate of return on assets | 5.20% | 4.80% |
Assumptions Used to Calculate Funded Status [Abstract] | ||
Discount rate | 5.40% | 4.90% |
Rate of compensation increase | 0.60% | 2% |
Employee Pension and Profit S_8
Employee Pension and Profit Sharing Plans - Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 8,104 | $ 8,560 |
Accumulated benefit obligation | $ 8,104 | $ 8,560 |
Employee Pension and Profit S_9
Employee Pension and Profit Sharing Plans - Schedule of Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 157,810 | $ 161,504 | $ 239,013 |
Quoted prices in active markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,608 | 8,387 | |
Significant other observable inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 141,273 | 143,310 | |
Significant unobservable inputs Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 929 | 9,807 | |
Cash and cash equivalents | Quoted prices in active markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,017 | 6,746 | |
Investment trusts | Quoted prices in active markets Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,591 | 1,641 | |
Investment Funds - Equity | Significant other observable inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,374 | 67,035 | |
Investment Funds - Fixed Income Funds | Significant other observable inputs Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 126,899 | 76,275 | |
Real Estate | Significant unobservable inputs Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 929 | 9,807 | |
Fair Value Disclosure | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 157,810 | 161,504 | |
Fair Value Disclosure | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,017 | 6,746 | |
Fair Value Disclosure | Investment trusts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,591 | 1,641 | |
Fair Value Disclosure | Investment Funds - Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,374 | 67,035 | |
Fair Value Disclosure | Investment Funds - Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 126,899 | 76,275 | |
Fair Value Disclosure | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 929 | $ 9,807 |
Employee Pension and Profit _10
Employee Pension and Profit Sharing Plans - Schedule of Expected Benefit Payments (Details) $ in Thousands | Sep. 29, 2023 USD ($) |
Retirement Benefits [Abstract] | |
Fiscal 2024 | $ 6,589 |
Fiscal 2025 | 6,859 |
Fiscal 2026 | 6,855 |
Fiscal 2027 | 6,962 |
Fiscal 2028 | 7,560 |
Fiscal 2029 – 2033 | $ 41,709 |
Employee Pension and Profit _11
Employee Pension and Profit Sharing Plans - Schedule of Multiemployer Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
SEIU National Industry Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Percentage of participants covered by CBA | 50% | ||
Multiemployer Pension Plans | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | $ 33,523 | $ 30,840 | $ 26,903 |
Multiemployer Pension Plans | National Retirement Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 3,994 | 3,434 | 2,579 |
Multiemployer Pension Plans | UNITE HERE Retirement Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 6,379 | 5,483 | 2,699 |
Multiemployer Pension Plans | Local 1102 Retirement Trust | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 65 | 33 | 22 |
Multiemployer Pension Plans | Central States SE and SW Areas Pension Plan | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 4,439 | 4,167 | 3,994 |
Multiemployer Pension Plans | Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 333 | 353 | 354 |
Multiemployer Pension Plans | SEIU National Industry Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 230 | 795 | 750 |
Multiemployer Pension Plans | Retail Wholesale & Department Store International Union and Industry Pension Fund | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | 466 | 462 | 510 |
Multiemployer Pension Plans | Other funds | |||
Multiepmloyer Plans [Line Items] | |||
Multiemployer plan, contributions by employer | $ 17,617 | $ 16,113 | $ 15,995 |
Income Taxes - Income (loss) fr
Income Taxes - Income (loss) from continuing operations before income taxes by source of income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 391,460 | $ 142,507 | $ (147,735) |
Non-United States | 459,684 | 113,131 | 14,883 |
Income (Loss) Before Income Taxes | $ 851,144 | $ 255,638 | $ (132,852) |
Income Taxes - Provision (benef
Income Taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Current: | |||
Federal | $ 28,118 | $ 1,125 | $ (18,245) |
State and local | 16,108 | 7,467 | (1,309) |
Non-United States | 18,843 | 17,447 | 22,155 |
Current | 63,069 | 26,039 | 2,601 |
Deferred: | |||
Federal | 101,120 | 29,912 | (15,364) |
State and local | 10,058 | 1,525 | (11,652) |
Non-United States | 3,367 | 3,985 | (16,218) |
Deferred income taxes | 114,545 | 35,422 | (43,234) |
Income tax provision (benefit) | $ 177,614 | $ 61,461 | $ (40,633) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Current (benefit) provision for income taxes | $ 16,700 | ||
Tax benefit to the deferred (benefit) provision for income taxes related to a corresponding decrease in deferred tax liabilities | 13,800 | ||
Net tax expense to the (benefit) provision for income taxes related to unrecognized tax benefits | 2,900 | ||
Current income tax assets | $ 10,198 | $ 10,842 | |
Accrued taxes | 25,000 | 2,600 | |
Proceeds from income tax refunds | 93,600 | ||
Net tax expense to provision (benefit) for income taxes | 76,700 | (4,200) | |
Gains and Losses from restructuring of certain foreign subsidiaries | 21,700 | ||
Income tax expense (benefit) | 177,614 | 61,461 | (40,633) |
Net operating loss carried back to Pre-TCJA years | 50,300 | ||
Valuation allowances | 78,194 | 83,827 | 97,472 |
Decrease in income taxes receivable | 1,800 | ||
Foreign tax credit carryforwards | 74,400 | ||
Tax credit carry forward, general business | 800 | ||
Deferred tax payable | 583,832 | 470,606 | |
Operating loss carryforwards | 85,500 | ||
Undistributed foreign earnings | 455,900 | 347,200 | |
Tax liability on undistributed foreign earnings | 27,300 | 20,400 | |
Gross unrecognized tax benefits | 70,313 | 80,220 | 65,414 |
Unrecognized tax benefits that would impact the effective tax rate | 39,900 | ||
Adjustment in deferred tax liability | 30,400 | ||
Accrued for interest and penalties | 11,400 | 9,700 | |
Income tax penalties and interest expense | 1,700 | 3,100 | 2,000 |
AIM Services Co., Ltd | |||
Tax Credit Carryforward [Line Items] | |||
Gains and Losses from restructuring of certain foreign subsidiaries | 98,400 | ||
Foreign Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward, amount | 9,600 | ||
Valuation Allowance, Operating Loss Carryforwards | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowances | 47,100 | ||
Deferred Income Taxes and Other Noncurrent Liabilities | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax payable | 610,500 | 501,400 | |
Other assets | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax assets | 26,700 | 30,800 | |
Foreign Tax Authority | Foreign Tax Credit Carryforward | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit carryforward, Interest | 31,100 | ||
Foreign Tax Authority | Canada Revenue Agency | |||
Tax Credit Carryforward [Line Items] | |||
Tax adjustments, settlements, and unusual provisions | 4,000 | ||
State and Local Jurisdiction | |||
Tax Credit Carryforward [Line Items] | |||
Valuation allowances | 10,100 | ||
CARES Act | |||
Tax Credit Carryforward [Line Items] | |||
Income tax expense (benefit) | 12,000 | ||
Valuation allowances | 36,500 | ||
Income taxes receivable | 3,700 | ||
Foreign tax credit carryforwards | 71,300 | ||
Tax credit carry forward, general business | 11,000 | ||
FSS International | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax asset, increase (decrease), amount | $ 3,800 | $ 8,500 | $ (22,000) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States statutory income tax rate | 21% | 21% | 21% |
Increase (decrease) in taxes, resulting from: | |||
State income taxes, net of Federal tax benefit | 2.40% | 4.70% | 7.70% |
Foreign taxes | 1.10% | 4% | 6.10% |
Reduction of foreign valuation allowances | (0.40%) | (2.10%) | (16.50%) |
Permanent book/tax differences | (0.40%) | 2.40% | (0.40%) |
Uncertain tax positions | 0.70% | 1% | (2.20%) |
Reduction of foreign tax credit valuation allowance | (0.60%) | (0.30%) | (27.50%) |
Sale of investments | (1.60%) | 0% | 0% |
CARES Act - Carryback rate differential | 0% | 0% | 37.90% |
Canada Defined Benefit Pension Plan Termination | 0% | 0% | 3% |
Pennsylvania Rate Change Impact | 0% | (1.70%) | 0% |
Tax credits & other | (1.30%) | (5.00%) | 1.50% |
Effective income tax rate | 20.90% | 24% | 30.60% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Details) - USD ($) $ in Thousands | Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 |
Deferred tax liabilities: | |||
Derivatives | $ 38,339 | $ 40,325 | |
Property and equipment | 60,622 | 98,331 | |
Investments | 13,864 | 44,233 | |
Other intangible assets, including goodwill | 635,154 | 606,211 | |
Cost to fulfill - Rental merchandise in-service | 70,359 | 56,976 | |
Operating Lease Right-of-use Assets | 61,049 | 83,270 | |
Computer software costs and other | 33,014 | 25,401 | |
Gross deferred tax liability | 912,401 | 954,747 | |
Deferred tax assets: | |||
Insurance | 13,999 | 16,087 | |
Employee compensation and benefits | 98,791 | 83,467 | |
Accruals and allowances | 27,640 | 31,803 | |
Operating lease liabilities | 74,024 | 91,492 | |
NOL/credit carryforwards and other | 192,309 | 345,119 | |
Gross deferred tax asset, before valuation allowances | 406,763 | 567,968 | |
Valuation allowances | (78,194) | (83,827) | $ (97,472) |
Net deferred tax liability | $ 583,832 | $ 470,606 |
Income Taxes - Schedule of Valu
Income Taxes - Schedule of Valuation Allowance Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of year | $ (83,827) | $ (97,472) |
Additions | 0 | 0 |
Subtractions | 5,633 | 13,645 |
Balance, end of year | $ (78,194) | $ (83,827) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the beginning and ending amount of gross unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 29, 2023 | Sep. 30, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance, beginning of year | $ 80,220 | $ 65,414 |
Additions based on tax positions taken in the current year | 4,433 | 863 |
Additions for tax positions taken in prior years | 0 | 19,610 |
Reductions for remeasurements, settlements and payments(2) | (12,451) | (4,212) |
Reductions due to statute expiration | (1,889) | (1,455) |
Balance, end of year | $ 70,313 | 80,220 |
Deferred income tax liabilities for a position taken related to reinvestment of certain tax advantaged proceeds | $ 16,200 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | Nov. 13, 2023 | |
Class of Stock [Line Items] | ||||
Dividend payments | $ 114,614 | $ 113,120 | $ 112,010 | |
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 outstanding (in shares) | 0 | 0 | ||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Common Stock | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Dividends declared (in dollars per share) | $ 0.095 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - shares | 12 Months Ended | |||||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | Feb. 03, 2023 | Jan. 29, 2020 | Dec. 01, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 | ||||
Forfeiture rate | 9% | 9% | 9% | |||
Common Stock | Second Amended and Restated 2013 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 7,500,000 | |||||
Common Stock | Third Amended and Restated 2013 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 3,500,000 | |||||
Common Stock | 2023 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 8,500,000 | |||||
2013 Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 25,500,000 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Share-based Compensation by Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized share-based compensation expense | $ 86,900 | $ 95,500 | $ 71,100 |
Taxes related to share-based compensation | 15,600 | 16,900 | 22,600 |
Cash Received from Option Exercises/ESPP Purchases | 46,974 | 49,322 | 41,587 |
Tax benefit on share deliveries | 1,900 | 1,000 | 3,800 |
Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized share-based compensation expense | 15,400 | 16,200 | 15,100 |
Retention Time-Based Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized share-based compensation expense | 5,200 | 4,800 | 4,600 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized share-based compensation expense | 51,500 | 57,800 | 46,000 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized share-based compensation expense | 10,700 | 5,600 | 0 |
Deferred Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized share-based compensation expense | 1,700 | 2,000 | 1,900 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized share-based compensation expense | $ 2,400 | $ 9,100 | $ 3,500 |
Share-Based Compensation - Sc_2
Share-Based Compensation - Schedule of Unrecognized Compensation Cost (Details) $ in Millions | 12 Months Ended |
Sep. 29, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 105.8 |
Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 16.6 |
Weighted-Average Period (Years) | 2 years 6 months 10 days |
Retention Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 6.2 |
Weighted-Average Period (Years) | 1 year 7 months 2 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 59.7 |
Weighted-Average Period (Years) | 2 years 4 months 20 days |
PSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Expense | $ 23.3 |
Weighted-Average Period (Years) | 2 years 6 months 3 days |
Share-Based Compensation - Time
Share-Based Compensation - Time-Based Options (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 tranche $ / shares | Sep. 29, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Oct. 01, 2021 USD ($) $ / shares | |
Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Requisite service period | 4 years | |||
Award vesting period | 3 years | |||
Award expiration period | 10 years | |||
Expected volatility | 42% | 41% | 40% | |
Expected life (in years) | 6 years 3 months | 6 years | 6 years 29 days | |
Risk-free interest rate, minimum | 3.65% | 1.26% | 0.52% | |
Risk-free interest rate, maximum | 4.28% | 2.96% | 1.15% | |
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 17.01 | $ 13.27 | $ 13.08 | |
Total intrinsic value exercised (in millions) | $ | $ 12 | $ 6.4 | $ 14.5 | |
Total fair value that vested (in millions) | $ | 15.7 | 13.8 | 16 | |
Retention Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total intrinsic value exercised (in millions) | $ | 0 | 0 | 0 | |
Total fair value that vested (in millions) | $ | $ 6.9 | $ 0.3 | $ 0 | |
Number of tranches | tranche | 6 | |||
Exercise price incremental amount (in dollars per share) | $ / shares | $ 10 | |||
Minimum | Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 1% | 1.18% | 1.08% | |
Minimum | Retention Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price (In dollars per share) | $ / shares | 35 | |||
Maximum | Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected dividend yield | 1.19% | 1.30% | 1.25% | |
Maximum | Retention Time-Based Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price (In dollars per share) | $ / shares | $ 85 |
Share-Based Compensation - Sc_3
Share-Based Compensation - Schedule of Options Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Sep. 29, 2023 USD ($) $ / shares shares | |
Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Shares Outstanding (in shares) | shares | 7,343 |
Granted (in shares) | shares | 928 |
Exercised (in shares) | shares | (1,369) |
Forfeited and expired (in shares) | shares | (302) |
Ending Shares Outstanding (in shares) | shares | 6,600 |
Shares exercisable (in shares) | shares | 4,733 |
Shares Expected to Vest (in shares) | shares | 1,707 |
Weighted-Average Exercise Price | |
Beginning Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 34.19 |
Granted Weighted-Average Exercise Price (in dollars per share) | $ / shares | 40.28 |
Exercised Weighted-Average Exercise Price (in dollars per share) | $ / shares | 31.94 |
Forfeited and expired Weighted-Average Exercise Price (in dollars per share) | $ / shares | 37.52 |
Ending Weighted-Average Exercise Price (in dollars per share) | $ / shares | 35.36 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | 33.92 |
Expected to vest Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 39 |
Aggregate Intrinsic Value | |
Aggregated Intrinsic Value of Shares Outstanding | $ | $ 14,641 |
Aggregate Intrinsic Value, Exercisable | $ | 14,353 |
Aggregate Intrinsic Value of Shares Expected to Vest | $ | $ 272 |
Weighted-Average Remaining Term of Shares Outstanding | 6 years 3 months 18 days |
Weighted average remaining contractual term, Excercisable | 5 years 6 months |
Weighted-Average Remaining Term of Shares Expected to Vest | 8 years 3 months 18 days |
Retention Time-Based Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Shares Outstanding (in shares) | shares | 5,562 |
Exercised (in shares) | shares | (8) |
Forfeited and expired (in shares) | shares | (332) |
Ending Shares Outstanding (in shares) | shares | 5,222 |
Shares exercisable (in shares) | shares | 1,741 |
Shares Expected to Vest (in shares) | shares | 3,209 |
Weighted-Average Exercise Price | |
Beginning Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 66.15 |
Exercised Weighted-Average Exercise Price (in dollars per share) | $ / shares | 35 |
Forfeited and expired Weighted-Average Exercise Price (in dollars per share) | $ / shares | 66.84 |
Ending Weighted-Average Exercise Price (in dollars per share) | $ / shares | 66.15 |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | 66.15 |
Expected to vest Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 66.15 |
Aggregate Intrinsic Value | |
Aggregated Intrinsic Value of Shares Outstanding | $ | $ 0 |
Aggregate Intrinsic Value, Exercisable | $ | 0 |
Aggregate Intrinsic Value of Shares Expected to Vest | $ | $ 0 |
Weighted-Average Remaining Term of Shares Outstanding | 6 years 10 months 24 days |
Weighted average remaining contractual term, Excercisable | 6 years 10 months 24 days |
Weighted-Average Remaining Term of Shares Expected to Vest | 6 years 10 months 24 days |
Share-Based Compensation - Defe
Share-Based Compensation - Deferred Stock and Time-Based Units Narrative (Details) - shares | 1 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Sep. 29, 2023 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in shares) | 1,337,000 | |
RSUs | Share-based Compensation Award, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting rights, percentage | 33% | 25% |
Deferred Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred Stock Unit will be converted to one share of common stock, if converted | 1 | |
Award vesting period | 1 year | |
Granted (in shares) | 45,319 |
Share-Based Compensation - Sc_4
Share-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - RSUs - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 3,464 | ||
Granted (in shares) | 1,337 | ||
Vested (in shares) | (1,672) | ||
Forfeited (in shares) | (421) | ||
Ending balance (in shares) | 2,708 | 3,464 | |
Weighted Average Grant-Date Fair Value | |||
Weighted Average Grant Date Fair Value, Beginning (in dollars per shares) | $ 35.59 | ||
Weighted Average Grant Date Fair Value, Granted (in dollars per shares) | 40.26 | ||
Weighted Average Grant Date Fair Value, Vested (in dollars per shares) | 34.18 | ||
Weighted Average Grant Date Fair Value, Forfeited (in dollars per shares) | 36.70 | ||
Weighted Average Grant Date Fair Value, Ending (in dollars per shares) | $ 38.54 | $ 35.59 | |
Total fair value that vested (in millions) | $ 57.1 | $ 41.6 | $ 58.7 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Stock Units Activity Narrative (Details) - shares | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 13, 2023 | |
2023 Stock Incentive Plan | Subsequent Event | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 3,500,000 | ||
PSUs | 2022 Performance Stock Unit Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | 3 years | |
Requisite service period | 4 years | 3 years | |
PSUs | Third Amended and Restated 2013 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | 3 years | |
PSUs | Third Amended and Restated 2013 Stock Incentive Plan | Share-Based Payment Arrangement, Two Third of PSU at Ending September 29, 2023 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
PSUs | Third Amended and Restated 2013 Stock Incentive Plan | Share-Based Payment Arrangement, One-Third of PSU at Ending September 27, 2024 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
PSU Actual Return on Invested Capital | 2022 Performance Stock Unit Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Requisite service period | 3 years |
Share-Based Compensation - Pe_2
Share-Based Compensation - Performance Stock Units Activity (Details) - PSUs shares in Thousands | 12 Months Ended |
Sep. 29, 2023 $ / shares shares | |
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 | 1,000 |
Granted (in shares) | shares | 477 |
Forfeited (in shares) | shares | (579) |
Ending balance (in shares) | shares | 898 |
Weighted Average Grant-Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning (in dollars per shares) | $ / shares | $ 41.13 |
Weighted Average Grant Date Fair Value, Granted (in dollars per shares) | $ / shares | 48.88 |
Weighted Average Grant Date Fair Value, Forfeited (in dollars per shares) | $ / shares | 42.93 |
Weighted Average Grant Date Fair Value, Ending (in dollars per shares) | $ / shares | $ 44.32 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan (Details) - Aramark 2021 ESPP - ESPP - shares | 12 Months Ended | |||
Feb. 02, 2021 | Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum employee subscription rate | 10% | |||
Purchase price of common stock, percent | 85% | |||
Number of shares authorized | 12,500,000 | |||
Shares issued in period (in shares) | 400,000 | 1,300,000 | 500,000 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Earnings (Loss): | |||
Net income (loss) attributable to Aramark stockholders | $ 674,108 | $ 194,484 | $ (90,833) |
Shares: | |||
Basic weighted-average shares outstanding (in shares) | 260,592 | 257,314 | 254,748 |
Effect of dilutive securities (in shares) | 2,002 | 1,760 | 0 |
Diluted weighted-average shares outstanding (in shares) | 262,594 | 259,074 | 254,748 |
Basic Earnings (Loss) Per Share: | |||
Net income attributable to Aramark stockholders (in dollars per share) | $ 2.59 | $ 0.76 | $ (0.36) |
Diluted Earnings (Loss) Per Share: | |||
Net income attributable to Aramark stockholders (in dollars per share) | $ 2.57 | $ 0.75 | $ (0.36) |
Antidilutive securities excluded from computation of EPS (in shares) | 2,000 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 2 | ||
Share-based Compensation Award | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 8.7 | 9.3 | 8.8 |
PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of EPS (in shares) | 0.9 | 0.5 | 0.6 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 29, 2023 | |
Loss Contingencies [Line Items] | |||
Capital and other purchase commitments | $ 840.8 | ||
Letters of credit outstanding | $ 85.5 | ||
Cost of services provided (exclusive of depreciation and amortization) | Pending Litigation | |||
Loss Contingencies [Line Items] | |||
Reversal of previously reserved amounts | $ 13.6 | $ 5.7 |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Sep. 29, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Oct. 01, 2021 USD ($) | Apr. 06, 2023 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Gain on Equity Investments, net (see Note 1) | $ (427,803) | $ 0 | $ (137,934) | |
Equity securities without readily determined fair value, recognized non-cash gain on price change | (137,900) | |||
Loss on defined benefit pension plan termination | $ 0 | 0 | 60,864 | |
AIM Services Co., Ltd | AIM Services Co., Ltd | ||||
Segment Reporting Information [Line Items] | ||||
Ownership percentage | 50% | 50% | ||
Gain on Equity Investments, net (see Note 1) | $ (427,800) | |||
Cost of services provided (exclusive of depreciation and amortization) | FSS United States | ||||
Segment Reporting Information [Line Items] | ||||
Gain on investments | $ 36,300 | $ 19,000 | $ 10,000 | |
Food Services | Sales Revenue, Segment | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 74% | |||
Facilities & Other | Sales Revenue, Segment | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk, percentage | 26% |
Business Segments - Financial I
Business Segments - Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 18,853,857 | $ 16,326,624 | $ 12,095,965 |
Total Operating Income | 862,926 | 628,365 | 191,444 |
Gain on Equity Investments, net (see Note 1) | (427,803) | 0 | (137,934) |
Loss on Defined Benefit Pension Plan Termination | 0 | 0 | 60,864 |
Interest and Other Financing Costs, net | 439,585 | 372,727 | 401,366 |
Income (Loss) Before Income Taxes | 851,144 | 255,638 | (132,852) |
Depreciation and amortization | 546,362 | 532,327 | 550,692 |
Capital expenditures and client contract investments and other | 462,900 | 436,000 | 411,600 |
Assets | 16,871,241 | 15,082,436 | |
Property and Equipment, net | 2,090,503 | 2,032,045 | |
Uniform Legal Entity | |||
Segment Reporting Information [Line Items] | |||
Cash dividends | 1,500,000 | ||
Total FSS United States | |||
Segment Reporting Information [Line Items] | |||
Revenue | 14,050,300 | 12,277,000 | 8,947,800 |
Property and Equipment, net | 1,798,700 | 1,777,700 | |
Foreign | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,803,600 | 4,049,600 | 3,148,200 |
Property and Equipment, net | 291,800 | 254,300 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Operating Income | 1,011,300 | 779,600 | 310,800 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total Operating Income | (148,400) | (151,200) | (119,400) |
Depreciation and amortization | 200 | 300 | 600 |
Capital expenditures and client contract investments and other | 400 | 0 | 200 |
Assets | 1,843,100 | 226,200 | |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Gain on Equity Investments, net (see Note 1) | (427,800) | 0 | (137,900) |
Loss on Defined Benefit Pension Plan Termination | 0 | 0 | 60,900 |
Interest and Other Financing Costs, net | 439,600 | 372,800 | 401,300 |
Income (Loss) Before Income Taxes | 851,100 | 255,600 | (132,900) |
FSS United States | |||
Segment Reporting Information [Line Items] | |||
Revenue | 11,721,400 | 10,030,800 | 6,809,300 |
FSS United States | Total FSS United States | |||
Segment Reporting Information [Line Items] | |||
Revenue | 11,721,400 | 10,030,800 | 6,809,300 |
FSS United States | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Operating Income | 669,500 | 449,000 | 131,800 |
Depreciation and amortization | 342,400 | 330,900 | 347,400 |
Capital expenditures and client contract investments and other | 299,300 | 283,300 | 261,800 |
Assets | 9,535,200 | 9,639,700 | |
FSS International | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4,361,800 | 3,656,400 | 2,866,200 |
FSS International | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Operating Income | 114,500 | 112,500 | 58,200 |
Depreciation and amortization | 67,300 | 66,800 | 69,400 |
Capital expenditures and client contract investments and other | 85,300 | 76,000 | 59,300 |
Assets | 2,250,800 | 1,989,100 | |
Career apparel and linens | |||
Segment Reporting Information [Line Items] | |||
Revenue | 2,770,700 | 2,639,400 | 2,420,500 |
Career apparel and linens | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Operating Income | 227,300 | 218,100 | 120,800 |
Depreciation and amortization | 136,500 | 134,300 | 133,300 |
Capital expenditures and client contract investments and other | 77,900 | 76,700 | $ 90,300 |
Assets | $ 3,242,100 | $ 3,227,400 |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | Jun. 02, 2022 | Jun. 04, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain from future expected payments | $ (97,336) | $ (20,749) | $ 0 | ||
Contingent consideration liability | 9,300 | ||||
Union Supply Group, Inc | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | $ 40,200 | ||||
Next Level Hospitality | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | $ 78,400 | ||||
Fair Value Disclosure | Union Supply Group, Inc | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain from future expected payments | 37,300 | ||||
Fair Value Disclosure | Next Level Hospitality | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain from future expected payments | 48,400 | 20,700 | |||
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 | 8,239,600 | 7,153,400 | |||
Fair Value Disclosure | Financial Assets and Liabilities Measured on a Recurring Basis | Union Supply Group, Inc | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | 8,400 | 45,800 | |||
Fair Value Disclosure | Financial Assets and Liabilities Measured on a Recurring Basis | Next Level Hospitality | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration | 0 | 48,400 | |||
Carrying (Reported) Amount, Fair Value Disclosure | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Carrying value of debt | $ 8,263,500 | $ 7,410,900 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 29, 2023 | Sep. 30, 2022 | Oct. 01, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Additions | $ 0 | $ 0 | |
Reductions | 5,633 | 13,645 | |
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 | 56,388 | 79,644 | $ 74,925 |
Additions | 38,074 | 1,923 | 13,544 |
Reductions | 37,890 | 25,179 | 8,825 |
Balance, End of Period | $ 56,572 | $ 56,388 | $ 79,644 |