XML 33 R22.htm IDEA: XBRL DOCUMENT v3.19.1
Condensed Consolidating Financial Statements of Aramark and Subsidiaries
6 Months Ended
Mar. 29, 2019
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Consolidating Financial Statements of Aramark and Subsidiaries
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF ARAMARK AND SUBSIDIARIES:
The following condensed consolidating financial statements of the Company have been prepared pursuant to Rule 3-10 of Regulation S-X.
The condensed consolidating financial statements are presented for: (i) Aramark (the "Parent"); (ii) Aramark Services, Inc. and Aramark International Finance S.à r.l. (the "Issuers"); (iii) the guarantors; (iv) the non guarantors; (v) elimination entries necessary to consolidate the Parent with the Issuers, the guarantors and non guarantors; and (vi) the Company on a consolidated basis. Each of the guarantors is wholly-owned, directly or indirectly, by the Company. The 5.125% Senior Notes due 2024 (the "2024 Notes"), 5.000% Senior Notes due April 1, 2025 (the "5.000% 2025 Notes"), 3.125% Senior Notes due April 1, 2025 (the "3.125% 2025 Notes" and, together with the 5.000% 2025 Notes, the "2025 Notes"), 4.75% Senior Notes due June 1, 2026 ("2026 Notes") and 5.000% Senior Notes due February 1, 2028 (the "2028 Notes") are obligations of the Company's wholly-owned subsidiary, Aramark Services, Inc., (other than the 3.125% 2025 Notes, which are obligations of the Company's wholly owned subsidiary, Aramark International Finance S.a.r.l) and are each jointly and severally guaranteed on a senior unsecured basis by the Company and substantially all of the Company's existing and future domestic subsidiaries (excluding the Receivables Facility subsidiary) ("Guarantors"). All other subsidiaries of the Company, either direct or indirect, do not guarantee the 2024 Notes, 2025 Notes, 2026 Notes or 2028 Notes ("Non Guarantors"). The Guarantors also guarantee certain other debt. These condensed consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the condensed consolidated financial statements. Interest expense and certain other costs are partially allocated to all of the subsidiaries of the Company. Goodwill and other intangible assets have been allocated to the subsidiaries based on management's estimates.
CONDENSED CONSOLIDATING BALANCE SHEETS
March 29, 2019
(in thousands)

 
Aramark (Parent)
 
Issuers
 
Guarantors
 
Non
Guarantors
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
5

 
$
31,508

 
$
23,754

 
$
140,120

 
$

 
$
195,387

Receivables

 
2,362

 
522,706

 
1,353,083

 

 
1,878,151

Inventories

 
16,041

 
261,024

 
123,204

 

 
400,269

Prepayments and other current assets

 
14,164

 
67,606

 
75,026

 

 
156,796

Total current assets
5

 
64,075

 
875,090

 
1,691,433

 

 
2,630,603

Property and Equipment, net

 
46,370

 
1,737,050

 
359,524

 

 
2,142,944

Goodwill

 
173,104

 
4,701,882

 
647,566

 

 
5,522,552

Investment in and Advances to Subsidiaries
3,233,675

 
6,908,790

 

 
743,584

 
(10,886,049
)
 

Other Intangible Assets

 
29,684

 
1,861,457

 
196,500

 

 
2,087,641

Other Assets

 
23,761

 
986,975

 
318,340

 
(2,002
)
 
1,327,074

 
$
3,233,680

 
$
7,245,784

 
$
10,162,454

 
$
3,956,947

 
$
(10,888,051
)
 
$
13,710,814

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Current maturities of long-term borrowings
$

 
$
3,654

 
$
28,744

 
$
23,941

 
$

 
$
56,339

Accounts payable

 
140,146

 
435,951

 
335,688

 

 
911,785

Accrued expenses and other current liabilities

 
151,055

 
863,268

 
328,570

 
88

 
1,342,981

Total current liabilities

 
294,855

 
1,327,963

 
688,199

 
88

 
2,311,105

Long-term Borrowings

 
6,360,687

 
73,177

 
700,422

 

 
7,134,286

Deferred Income Taxes and Other Noncurrent Liabilities

 
394,677

 
512,591

 
114,481

 

 
1,021,749

Intercompany Payable

 

 
4,552,727

 
731,000

 
(5,283,727
)
 

Redeemable Noncontrolling Interest

 

 
9,994

 

 

 
9,994

Total Stockholders' Equity
3,233,680

 
195,565

 
3,686,002

 
1,722,845

 
(5,604,412
)
 
3,233,680

 
$
3,233,680

 
$
7,245,784

 
$
10,162,454

 
$
3,956,947

 
$
(10,888,051
)
 
$
13,710,814


CONDENSED CONSOLIDATING BALANCE SHEETS
September 28, 2018
(in thousands)

 
Aramark (Parent)
 
Issuers
 
Guarantors 
 
Non
Guarantors
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
 
 
Current Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
5

 
$
50,716

 
$
29,844

 
$
134,460

 
$

 
$
215,025

Receivables

 
1,038

 
443,599

 
1,345,796

 

 
1,790,433

Inventories

 
15,857

 
592,259

 
116,686

 

 
724,802

Prepayments and other current assets

 
21,411

 
86,100

 
63,654

 

 
171,165

Total current assets
5

 
89,022

 
1,151,802

 
1,660,596

 

 
2,901,425

Property and Equipment, net

 
28,341

 
1,013,523

 
336,230

 

 
1,378,094

Goodwill

 
173,104

 
4,783,547

 
653,917

 

 
5,610,568

Investment in and Advances to Subsidiaries
3,029,553

 
7,441,605

 
90,049

 
844,245

 
(11,405,452
)
 

Other Intangible Assets

 
29,684

 
1,919,795

 
187,365

 

 
2,136,844

Other Assets

 
100,754

 
1,264,976

 
329,443

 
(2,002
)
 
1,693,171

 
$
3,029,558

 
$
7,862,510

 
$
10,223,692

 
$
4,011,796

 
$
(11,407,454
)
 
$
13,720,102

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Current maturities of long-term borrowings
$

 
$

 
$
26,564

 
$
4,343

 
$

 
$
30,907

Accounts payable

 
128,460

 
483,606

 
406,854

 

 
1,018,920

Accrued expenses and other current liabilities

 
205,807

 
926,794

 
307,643

 
88

 
1,440,332

Total current liabilities

 
334,267

 
1,436,964

 
718,840

 
88

 
2,490,159

Long-term Borrowings

 
6,651,110

 
82,097

 
479,870

 

 
7,213,077

Deferred Income Taxes and Other Noncurrent Liabilities

 
432,583

 
466,331

 
78,301

 

 
977,215

Intercompany Payable

 

 
4,827,084

 
955,407

 
(5,782,491
)
 

Redeemable Noncontrolling Interest

 

 
10,093

 

 

 
10,093

Total Stockholders' Equity
3,029,558

 
444,550

 
3,401,123

 
1,779,378

 
(5,625,051
)
 
3,029,558

 
$
3,029,558

 
$
7,862,510

 
$
10,223,692

 
$
4,011,796

 
$
(11,407,454
)
 
$
13,720,102



CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the three months ended March 29, 2019
(in thousands)
 
 
Aramark (Parent)
 
Issuers
 
Guarantors 
 
Non
Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
260,057

 
$
2,629,407

 
$
1,110,523

 
$

 
$
3,999,987

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of services provided

 
234,485

 
2,375,337

 
1,030,137

 

 
3,639,959

Depreciation and amortization

 
3,817

 
118,261

 
25,830

 

 
147,908

Selling and general corporate expenses

 
35,870

 
45,374

 
7,041

 

 
88,285

Gain on sale of Healthcare Technologies

 

 
1,000

 

 

 
1,000

Interest and other financing costs, net

 
78,353

 
1,036

 
4,789

 

 
84,178

Expense allocations

 
85,651

 
(89,505
)
 
3,854

 

 

 

 
438,176

 
2,451,503

 
1,071,651

 

 
3,961,330

Income (Loss) before Income Tax

 
(178,119
)
 
177,904

 
38,872

 

 
38,657

Provision (Benefit) for Income Taxes

 
(35,757
)
 
35,298

 
9,806

 

 
9,347

Equity in Net Income of Subsidiaries
29,353

 

 

 

 
(29,353
)
 

Net income (loss)
29,353

 
(142,362
)
 
142,606

 
29,066

 
(29,353
)
 
29,310

Less: Net income (loss) attributable to noncontrolling interest

 

 
(43
)
 

 

 
(43
)
Net income (loss) attributable to Aramark stockholders
29,353

 
(142,362
)
 
142,649

 
29,066

 
(29,353
)
 
29,353

Other comprehensive (loss), net of tax
(8,655
)
 
(17,074
)
 

 
(5,890
)
 
22,964

 
(8,655
)
Comprehensive income (loss) attributable to Aramark stockholders
$
20,698

 
$
(159,436
)
 
$
142,649

 
$
23,176

 
$
(6,389
)
 
$
20,698




CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the six months ended March 29, 2019
(in thousands)

 
Aramark (Parent)
 
Issuers
 
Guarantors 
 
Non
Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
528,579

 
$
5,478,334

 
$
2,258,423

 
$

 
$
8,265,336

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of services provided

 
481,094

 
4,839,939

 
2,113,371

 

 
7,434,404

Depreciation and amortization

 
8,289

 
239,243

 
51,097

 

 
298,629

Selling and general corporate expenses

 
91,612

 
86,926

 
13,877

 

 
192,415

Gain on sale of Healthcare Technologies

 

 
(156,309
)
 

 

 
(156,309
)
Interest and other financing costs, net

 
156,912

 
2,007

 
8,236

 

 
167,155

Expense allocations

 
(144,938
)
 
136,296

 
8,642

 

 

 

 
592,969

 
5,148,102

 
2,195,223

 

 
7,936,294

Income before Income Taxes

 
(64,390
)
 
330,232

 
63,200

 

 
329,042

Provision (Benefit) for Income Taxes

 
(27,017
)
 
60,298

 
15,773

 

 
49,054

Equity in Net Income of Subsidiaries
280,037

 

 

 

 
(280,037
)
 

Net income
280,037

 
(37,373
)
 
269,934

 
47,427

 
(280,037
)
 
279,988

Less: Net income (loss) attributable to noncontrolling interest

 

 
(49
)
 

 

 
(49
)
Net income attributable to Aramark stockholders
280,037

 
(37,373
)
 
269,983

 
47,427

 
(280,037
)
 
280,037

Other comprehensive (loss), net of tax
(50,428
)
 
(44,425
)
 

 
(50,841
)
 
95,266

 
(50,428
)
Comprehensive income (loss) attributable to Aramark stockholders
$
229,609

 
$
(81,798
)
 
$
269,983

 
$
(3,414
)
 
$
(184,771
)
 
$
229,609


CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the three months ended March 30, 2018
(in thousands)

 
Aramark (Parent)
 
Issuers
 
Guarantors 
 
Non Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
252,354

 
$
2,605,150

 
$
1,081,807

 
$

 
$
3,939,311

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of services provided

 
220,756

 
2,306,776

 
1,035,477

 

 
3,563,009

Depreciation and amortization

 
5,383

 
127,270

 
20,211

 

 
152,864

Selling and general corporate expenses

 
48,458

 
34,506

 
5,480

 

 
88,444

Interest and other financing costs

 
88,220

 
470

 
3,963

 

 
92,653

Expense allocations

 
(80,805
)
 
76,189

 
4,616

 

 

 

 
282,012

 
2,545,211

 
1,069,747

 

 
3,896,970

Income (Loss) before Income Tax

 
(29,658
)
 
59,939

 
12,060

 

 
42,341

Provision (Benefit) for Income Taxes

 
(7,195
)
 
12,056

 
9,764

 

 
14,625

Equity in Net Income of Subsidiaries
27,569

 

 

 

 
(27,569
)
 

Net income (loss)
27,569

 
(22,463
)
 
47,883

 
2,296

 
(27,569
)
 
27,716

Less: Net income attributable to noncontrolling interest

 

 
147

 

 

 
147

Net income (loss) attributable to Aramark stockholders
27,569

 
(22,463
)
 
47,736

 
2,296

 
(27,569
)
 
27,569

Other comprehensive income, net of tax
49,460

 
17,434

 
2,181

 
47,875

 
(67,490
)
 
49,460

Comprehensive income (loss) attributable to Aramark stockholders
$
77,029

 
$
(5,029
)
 
$
49,917

 
$
50,171

 
$
(95,059
)
 
$
77,029



CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the six months ended March 30, 2018
(in thousands)

 
Aramark (Parent)
 
Issuers
 
Guarantors 
 
Non Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
510,625

 
$
5,248,416

 
$
2,145,388

 
$

 
$
7,904,429

Costs and Expenses:
 
 
 
 
 
 
 
 
 
 
 
Cost of services provided

 
445,972

 
4,626,967

 
2,012,300

 

 
7,085,239

Depreciation and amortization

 
9,874

 
233,165

 
43,674

 

 
286,713

Selling and general corporate expenses

 
102,124

 
68,204

 
10,284

 

 
180,612

Interest and other financing costs

 
159,395

 
537

 
6,854

 

 
166,786

Expense allocations

 
(146,008
)
 
137,299

 
8,709

 

 

 

 
571,357

 
5,066,172

 
2,081,821

 

 
7,719,350

Income (Loss) before Income Tax

 
(60,732
)
 
182,244

 
63,567

 

 
185,079

Provision (Benefit) for Income Taxes

 
(27,904
)
 
(130,391
)
 
23,218

 

 
(135,077
)
Equity in Net Income of Subsidiaries
319,853

 

 

 

 
(319,853
)
 

Net income (loss)
319,853

 
(32,828
)
 
312,635

 
40,349

 
(319,853
)
 
320,156

Less: Net income attributable to noncontrolling interest

 

 
303

 

 

 
303

Net income (loss) attributable to Aramark stockholders
319,853

 
(32,828
)
 
312,332

 
40,349

 
(319,853
)
 
319,853

Other comprehensive income, net of tax
61,065

 
22,823

 
2,181

 
66,877

 
(91,881
)
 
61,065

Comprehensive income (loss) attributable to Aramark stockholders
$
380,918

 
$
(10,005
)
 
$
314,513

 
$
107,226

 
$
(411,734
)
 
$
380,918


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the six months ended March 29, 2019
(in thousands)

 
Aramark (Parent)
 
Issuers
 
Guarantors 
 
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$

 
$
(84,943
)
 
$
133,213

 
$
52,030

 
$
(11,317
)
 
$
88,983

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Purchases of property and equipment and other assets

 
(6,680
)
 
(183,367
)
 
(40,355
)
 

 
(230,402
)
Disposals of property and equipment

 
5,081

 
903

 
1,572

 

 
7,556

Proceeds from divestiture

 

 
293,711

 

 

 
293,711

Acquisitions of businesses, net of cash acquired

 

 
(9,443
)
 
(21,672
)
 

 
(31,115
)
Other investing activities

 
178

 
19,298

 
(1,031
)
 

 
18,445

Net cash provided by (used in) investing activities

 
(1,421
)
 
121,102

 
(61,486
)
 

 
58,195

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term borrowings

 

 

 
100,071

 

 
100,071

Payments of long-term borrowings

 
(279,557
)
 
(16,800
)
 
(49,101
)
 

 
(345,458
)
Net change in funding under the Receivables Facility

 

 

 
205,000

 

 
205,000

Payments of dividends

 
(54,220
)
 

 

 

 
(54,220
)
Proceeds from issuance of common stock

 
10,372

 

 

 

 
10,372

Repurchase of stock

 
(50,000
)
 

 

 

 
(50,000
)
Other financing activities

 
(27,533
)
 
(1,474
)
 
(113
)
 

 
(29,120
)
Change in intercompany, net

 
468,094

 
(242,131
)
 
(237,280
)
 
11,317

 

Net cash provided by (used in) financing activities

 
67,156

 
(260,405
)
 
18,577

 
11,317

 
(163,355
)
Effect of foreign exchange rates on cash and cash equivalents

 

 

 
(3,461
)
 

 
(3,461
)
Increase (decrease) in cash and cash equivalents

 
(19,208
)
 
(6,090
)
 
5,660

 

 
(19,638
)
Cash and cash equivalents, beginning of period
5

 
50,716

 
29,844

 
134,460

 

 
215,025

Cash and cash equivalents, end of period
$
5

 
$
31,508

 
$
23,754

 
$
140,120

 
$

 
$
195,387


CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the six months ended March 30, 2018
(in thousands)

 
Aramark (Parent)
 
Issuers
 
Guarantors 
 
Non
Guarantors
 
Eliminations
 
Consolidated
Net cash provided by (used in) operating activities
$

 
$
(59,339
)
 
$
83,220

 
$
32,748

 
$
(35,002
)
 
$
21,627

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
Purchases of property and equipment and other assets

 
(5,675
)
 
(210,344
)
 
(32,385
)
 

 
(248,404
)
Disposals of property and equipment

 
2,154

 
1,305

 
1,529

 

 
4,988

Acquisitions of businesses, net of cash acquired

 
(2,369,118
)
 
222,893

 
(81,560
)
 

 
(2,227,785
)
Other investing activities

 
(793
)
 
(3,597
)
 
(669
)
 

 
(5,059
)
Net cash provided by (used in) investing activities

 
(2,373,432
)
 
10,257

 
(113,085
)
 

 
(2,476,260
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term borrowings

 
2,935,001

 

 
156,776

 

 
3,091,777

Payments of long-term borrowings

 
(638,721
)
 
(13,926
)
 
(30,455
)
 

 
(683,102
)
Net change in funding under the Receivables Facility

 

 

 
95,800

 

 
95,800

Payments of dividends

 
(51,547
)
 

 

 

 
(51,547
)
Proceeds from issuance of common stock

 
10,556

 

 

 

 
10,556

Repurchase of stock

 
(24,410
)
 

 

 

 
(24,410
)
Other financing activities

 
(38,741
)
 
(1,145
)
 
(390
)
 

 
(40,276
)
Change in intercompany, net

 
166,556

 
(83,884
)
 
(117,674
)
 
35,002

 

Net cash provided by (used in) financing activities

 
2,358,694

 
(98,955
)
 
104,057

 
35,002

 
2,398,798

Effect of foreign exchange rates on cash and cash equivalents

 

 

 
2,571

 

 
2,571

Increase (decrease) in cash and cash equivalents

 
(74,077
)
 
(5,478
)
 
26,291

 

 
(53,264
)
Cash and cash equivalents, beginning of period
5

 
111,512

 
37,513

 
89,767

 

 
238,797

Cash and cash equivalents, end of period
$
5

 
$
37,435

 
$
32,035

 
$
116,058

 
$

 
$
185,533