Condensed Consolidating Financial Statements of Aramark and Subsidiaries (Tables)

12 Months Ended

Sep. 27, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidated Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEETS

September 27, 2019

(in thousands)



	Aramark (Parent)		Issuers		Guarantors		Non Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	5	$	33,510	$	40,544	$	172,584	$	—		$	246,643
Receivables	—		1,966		522,627		1,282,371		—			1,806,964
Inventories	—		15,804		301,091		94,424		—			411,319
Prepayments and other current assets	—		27,164		82,666		83,631		—			193,461
Total current assets	5		78,444		946,928		1,633,010		—			2,658,387
Property and Equipment, net	—		43,329		1,784,410		354,023		—			2,181,762
Goodwill	—		173,104		4,694,549		651,147		—			5,518,800
Investment in and Advances to Subsidiaries	3,320,042		6,649,119		—		717,228		(10,686,389		)	—
Other Intangible Assets	—		29,684		1,819,315		184,567		—			2,033,566
Other Assets	—		20,382		979,350		346,076		(2,002		)	1,343,806
	$	3,320,047	$	6,994,062	$	10,224,552	$	3,886,051	$	(10,688,391	)	$	13,736,321
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term borrowings	$	—	$	6,256	$	27,924	$	35,748	$	—		$	69,928
Accounts payable	—		127,640		507,903		363,974		—			999,517
Accrued expenses and other current liabilities	—		241,523		1,030,074		364,168		88			1,635,853
Total current liabilities	—		375,419		1,565,901		763,890		88			2,705,298
Long-term Borrowings	—		6,090,487		82,394		439,358		—			6,612,239
Deferred Income Taxes and Other Noncurrent Liabilities	—		380,453		569,409		138,960		—			1,088,822
Intercompany Payable	—		—		4,187,591		726,464		(4,914,055		)	—
Redeemable Noncontrolling Interest	—		—		9,915		—		—			9,915
Total Stockholders' Equity	3,320,047		147,703		3,809,342		1,817,379		(5,774,424		)	3,320,047
	$	3,320,047	$	6,994,062	$	10,224,552	$	3,886,051	$	(10,688,391	)	$	13,736,321

CONDENSED CONSOLIDATING BALANCE SHEETS

September 28, 2018

(in thousands)



	Aramark (Parent)		Issuers		Guarantors		Non Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	5	$	50,716	$	29,844	$	134,460	$	—		$	215,025
Receivables	—		1,038		443,599		1,345,796		—			1,790,433
Inventories	—		15,857		592,259		116,686		—			724,802
Prepayments and other current assets	—		21,411		86,100		63,654		—			171,165
Total current assets	5		89,022		1,151,802		1,660,596		—			2,901,425
Property and Equipment, net	—		28,341		1,013,523		336,230		—			1,378,094
Goodwill	—		173,104		4,783,547		653,917		—			5,610,568
Investment in and Advances to Subsidiaries	3,029,553		7,441,605		90,049		844,245		(11,405,452		)	—
Other Intangible Assets	—		29,684		1,919,795		187,365		—			2,136,844
Other Assets	—		100,754		1,264,976		329,443		(2,002		)	1,693,171
	$	3,029,558	$	7,862,510	$	10,223,692	$	4,011,796	$	(11,407,454	)	$	13,720,102
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term borrowings	$	—	$	—	$	26,564	$	4,343	$	—		$	30,907
Accounts payable	—		128,460		483,606		406,854		—			1,018,920
Accrued expenses and other current liabilities	—		205,807		926,794		307,643		88			1,440,332
Total current liabilities	—		334,267		1,436,964		718,840		88			2,490,159
Long-term Borrowings	—		6,651,110		82,097		479,870		—			7,213,077
Deferred Income Taxes and Other Noncurrent Liabilities	—		432,583		466,331		78,301		—			977,215
Intercompany Payable	—		—		4,827,084		955,407		(5,782,491		)	—
Redeemable Noncontrolling Interest	—		—		10,093		—		—			10,093
Total Stockholders' Equity	3,029,558		444,550		3,401,123		1,779,378		(5,625,051		)	3,029,558
	$	3,029,558	$	7,862,510	$	10,223,692	$	4,011,796	$	(11,407,454	)	$	13,720,102

Schedule of Condensed Consolidated Statement of Income

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the year ended September 27, 2019

(in thousands)



	Aramark (Parent)			Issuers			Guarantors			Non Guarantors			Eliminations			Consolidated
Revenue	$	—		$	1,062,655		$	10,653,013		$	4,511,673		$	—		$	16,227,341
Costs and Expenses:
Cost of services provided	—			981,661			9,362,232			4,188,769			—			14,532,662
Depreciation and amortization	—			16,377			473,833			102,363			—			592,573
Selling and general corporate expenses	—			162,963			176,714			27,579			—			367,256
Gain on sale of Healthcare Technologies	—			—			(156,309		)	—			—			(156,309		)
Interest and other financing costs, net	—			316,120			3,531			15,336			—			334,987
Expense allocations	—			(315,432		)	274,501			40,931			—			—
	—			1,161,689			10,134,502			4,374,978			—			15,671,169
Income (Loss) before Income Taxes	—			(99,034		)	518,511			136,695			—			556,172
Provision (Benefit) for Income Taxes	—			(38,388		)	109,144			36,950			—			107,706
Equity in Net Income of Subsidiaries	448,549			—			—			—			(448,549		)	—
Net income (loss)	448,549			(60,646		)	409,367			99,745			(448,549		)	448,466
Less: Net loss attributable to noncontrolling interest	—			—			(83		)	—			—			(83		)
Net income (loss) attributable to Aramark stockholders	448,549			(60,646		)	409,450			99,745			(448,549		)	448,549
Other comprehensive income (loss), net of tax	(125,742		)	(71,282		)	(553		)	(121,505		)	193,340			(125,742		)
Comprehensive income (loss) attributable to Aramark stockholders	$	322,807		$	(131,928	)	$	408,897		$	(21,760	)	$	(255,209	)	$	322,807

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the year ended September 28, 2018

(in thousands)



	Aramark (Parent)		Issuers			Guarantors			Non Guarantors			Eliminations			Consolidated
Revenue	$	—	$	1,027,573		$	10,432,088		$	4,329,972		$	—		$	15,789,633
Costs and Expenses:
Cost of services provided	—		848,739			9,132,991			4,016,181			—			13,997,911
Depreciation and amortization	—		19,466			483,106			93,610			—			596,182
Selling and general corporate expenses	—		195,093			158,064			23,972			—			377,129
Interest and other financing costs, net	—		329,027			266			17,242			—			346,535
Expense allocations	—		(374,970		)	353,628			21,342			—			—
	—		1,017,355			10,128,055			4,172,347			—			15,317,757
Income before Income Taxes	—		10,218			304,033			157,625			—			471,876
Provision (Benefit) for Income Taxes	—		(3,521		)	(143,452		)	50,409			—			(96,564		)
Equity in Net Income of Subsidiaries	567,885		—			—			—			(567,885		)	—
Net income	567,885		13,739			447,485			107,216			(567,885		)	568,440
Less: Net income attributable to noncontrolling interest	—		—			555			—			—			555
Net income attributable to Aramark stockholders	567,885		13,739			446,930			107,216			(567,885		)	567,885
Other comprehensive income (loss), net of tax	32,537		43,686			3,178			(36,776		)	(10,088		)	32,537
Comprehensive income attributable to Aramark stockholders	$	600,422	$	57,425		$	450,108		$	70,440		$	(577,973	)	$	600,422

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the year ended September 29, 2017

(in thousands)



	Aramark (Parent)		Issuers			Guarantors			Non Guarantors		Eliminations			Consolidated
Revenue	$	—	$	1,041,490		$	9,708,157		$	3,854,765	$	—		$	14,604,412
Costs and Expenses:
Cost of services provided	—		941,031			8,507,705			3,546,667		—			12,995,403
Depreciation and amortization	—		17,502			416,979			73,731		—			508,212
Selling and general corporate expenses	—		140,305			138,304			20,561		—			299,170
Interest and other financing costs, net	—		273,405			(3,196		)	10,776		—			280,985
Expense allocations	—		(348,042		)	318,199			29,843		—			—
	—		1,024,201			9,377,991			3,681,578		—			14,083,770
Income Before Income Taxes	—		17,289			330,166			173,187		—			520,642
Provision for Income Taxes	—		5,139			98,144			43,172		—			146,455
Equity in Net Income of Subsidiaries	373,923		—			—			—		(373,923		)	—
Net income	373,923		12,150			232,022			130,015		(373,923		)	374,187
Less: Net income attributable to noncontrolling interest	—		—			264			—		—			264
Net income attributable to Aramark stockholders	373,923		12,150			231,758			130,015		(373,923		)	373,923
Other comprehensive income, net of tax	57,023		35,667			431			80,204		(116,302		)	57,023
Comprehensive income attributable to Aramark stockholders	$	430,946	$	47,817		$	232,189		$	210,219	$	(490,225	)	$	430,946

Schedule of Condensed Consolidated Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the year ended September 27, 2019

(in thousands)



	Aramark (Parent)		Issuers			Guarantors			Non Guarantors			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—	$	(47,231	)	$	757,832		$	290,539		$	(16,913	)	$	984,227
Cash flows from investing activities:
Purchases of property and equipment and other	—		(12,160		)	(414,017		)	(76,913		)	—			(503,090		)
Disposals of property and equipment	—		6,644			6,665			4,562			—			17,871
Proceeds from divestiture	—		—			293,711			—			—			293,711
Acquisitions of businesses, net of cash acquired	—		—			(23,028		)	(21,835		)	—			(44,863		)
Proceeds from government agencies related to property and equipment	—		—			23,025			—			—			23,025
Other investing activities	—		(356		)	3,677			504			—			3,825
Net cash used in investing activities	—		(5,872		)	(109,967		)	(93,682		)	—			(209,521		)
Cash flows from financing activities:
Proceeds from long-term borrowings	—		—			—			77,630			—			77,630
Payments of long-term borrowings	—		(545,809		)	(34,431		)	(74,320		)	—			(654,560		)
Payments of dividends	—		(108,439		)	—			—			—			(108,439		)
Proceeds from issuance of common stock	—		39,087			—			—			—			39,087
Repurchase of common stock	—		(50,000		)	—			—			—			(50,000		)
Other financing activities	—		(36,305		)	(2,192		)	(113		)	—			(38,610		)
Change in intercompany, net	—		737,363			(600,542		)	(153,734		)	16,913			—
Net cash provided by (used in) financing activities	—		35,897			(637,165		)	(150,537		)	16,913			(734,892		)
Effect of foreign exchange rates on cash and cash equivalents	—		—			—			(8,196		)	—			(8,196		)
Decrease (increase) in cash and cash equivalents	—		(17,206		)	10,700			38,124			—			31,618
Cash and cash equivalents, beginning of period	5		50,716			29,844			134,460			—			215,025
Cash and cash equivalents, end of period	$	5	$	33,510		$	40,544		$	172,584		$	—		$	246,643

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the year ended September 28, 2018

(in thousands)



	Aramark (Parent)		Issuers			Guarantors			Non Guarantors			Eliminations			Consolidated
Net cash provided by operating activities	$	—	$	111,541		$	690,218		$	315,703		$	(65,587	)	$	1,051,875
Cash flows from investing activities:
Purchases of property and equipment other	—		(13,133		)	(532,923		)	(82,548		)	—			(628,604		)
Disposals of property and equipment	—		2,252			4,301			3,938			—			10,491
Acquisitions of businesses, net of cash acquired	—		(2,381,800		)	244,581			(103,065		)	—			(2,240,284		)
Other investing activities	—		(3,095		)	328			(4,112		)	—			(6,879		)
Net cash used in investing activities	—		(2,395,776		)	(283,713		)	(185,787		)	—			(2,865,276		)
Cash flows from financing activities:
Proceeds from long-term borrowings	—		3,012,072			—			165,241			—			3,177,313
Payments of long-term borrowings	—		(833,854		)	(28,142		)	(111,693		)	—			(973,689		)
Net change in funding under the Receivables Facility	—		—			—			(254,200		)	—			(254,200		)
Payments of dividends	—		(103,115		)	—			—			—			(103,115		)
Proceeds from issuance of common stock	—		21,507			—			—			—			21,507
Repurchase of common stock	—		(24,410		)	—			—			—			(24,410		)
Other financing activities	—		(45,905		)	(2,958		)	(390		)	—			(49,253		)
Change in intercompany, net	—		197,144			(383,074		)	120,343			65,587			—
Net cash provided by (used in) financing activities	—		2,223,439			(414,174		)	(80,699		)	65,587			1,794,153
Effect of foreign exchange rates on cash and cash equivalents	—		—			—			(4,524		)	—			(4,524		)
(Decrease) increase in cash and cash equivalents	—		(60,796		)	(7,669		)	44,693			—			(23,772		)
Cash and cash equivalents, beginning of period	5		111,512			37,513			89,767			—			238,797
Cash and cash equivalents, end of period	$	5	$	50,716		$	29,844		$	134,460		$	—		$	215,025

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the year ended September 29, 2017

(in thousands)



	Aramark (Parent)		Issuers			Guarantors			Non Guarantors			Eliminations			Consolidated
Net cash provided by operating activities	$	—	$	261,282		$	779,801		$	200,018		$	(188,275	)	$	1,052,826
Cash flows from investing activities:
Purchases of property and equipment and other	—		(20,939		)	(443,262		)	(88,528		)	—			(552,729		)
Disposals of property and equipment	—		494			14,780			3,632			—			18,906
Acquisitions of businesses, net of cash acquired	—		—			(37,130		)	(104,992		)	—			(142,122		)
Other investing activities	—		(69,401		)	36,946			29,916			—			(2,539		)
Net cash used in investing activities	—		(89,846		)	(428,666		)	(159,972		)	—			(678,484		)
Cash flows from financing activities:
Proceeds from long-term borrowings	—		3,451,164			—			400,253			—			3,851,417
Payments of long-term borrowings	—		(3,572,268		)	(19,851		)	(319,873		)	—			(3,911,992		)
Net change in funding under the Receivables Facility	—		—			—			(13,800		)	—			(13,800		)
Payments of dividends	—		(100,813		)	—			—			—			(100,813		)
Proceeds from issuance of common stock	—		28,779			—			—			—			28,779
Repurchase of common stock	—		(100,000		)	—			—			—			(100,000		)
Other financing activities	—		(69,172		)	(2,973		)	29,868			—			(42,277		)
Change in intercompany, net	—		254,536			(322,142		)	(120,669		)	188,275			—
Net cash used in financing activities	—		(107,774		)	(344,966		)	(24,221		)	188,275			(288,686		)
Effect of foreign exchange rates on cash and cash equivalents	—		—			—			561			—			561
Increase in cash and cash equivalents	—		63,662			6,169			16,386			—			86,217
Cash and cash equivalents, beginning of period	5		47,850			31,344			73,381			—			152,580
Cash and cash equivalents, end of period	$	5	$	111,512		$	37,513		$	89,767		$	—		$	238,797