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Revenue Recognition (Tables)

6 Months Ended

Mar. 29, 2019

Revenue from Contract with Customer [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following table compares the reported Condensed Consolidated Statements of Income for the three and six month period ended March 29, 2019, to the balances had the previous revenue accounting guidance remained in effect (in thousands):

		Three Months Ended March 29, 2019
		As Reported				Adoption adjustments of ASC 606				Balances without adoption of ASC 606
Revenue		$	3,999,987			$	(91,583	)		$	3,908,404
Costs and Expenses:
Cost of services provided		3,639,959				(94,490		)		3,545,469
Depreciation and amortization		147,908				4,893				152,801
Selling and general corporate expenses		88,285				—				88,285
Gain on sale of Healthcare Technologies		1,000				—				1,000
		3,877,152				(89,597		)		3,787,555
Operating income		122,835				(1,986		)		120,849
Interest and Other Financing Costs, net		84,178				—				84,178
Income Before Income Taxes		38,657				(1,986		)		36,671
Provision for Income Taxes		9,347				(514		)		8,833
Net income		29,310				(1,472		)		27,838
Less: Net income (loss) attributable to noncontrolling interest		(43		)		—				(43		)
Net income attributable to Aramark stockholders		$	29,353			$	(1,472	)		$	27,881

		Six Months Ended March 29, 2019
		As Reported				Adoption adjustments of ASC 606				Balances without adoption of ASC 606
Revenue		$	8,265,336			$	(180,090	)		$	8,085,246
Costs and Expenses:
Cost of services provided		7,434,404				(183,197		)		7,251,207
Depreciation and amortization		298,629				7,899				306,528
Selling and general corporate expenses		192,415				—				192,415
Gain on sale of Healthcare Technologies		(156,309		)		—				(156,309		)
		7,769,139				(175,298		)		7,593,841
Operating income		496,197				(4,792		)		491,405
Interest and Other Financing Costs, net		167,155				—				167,155
Income Before Income Taxes		329,042				(4,792		)		324,250
Provision for Income Taxes		49,054				(1,241		)		47,813
Net income		279,988				(3,551		)		276,437
Less: Net income (loss) attributable to noncontrolling interest		(49		)		—				(49		)
Net income attributable to Aramark stockholders		$	280,037			$	(3,551	)		$	276,486

The following table compares the reported Condensed Consolidated Balance Sheet as of March 29, 2019, to the balances had the previous revenue accounting guidance remained in effect (in thousands):

		March 29, 2019
		As Reported				Adoption adjustments of ASC 606				Balances without adoption of ASC 606
ASSETS
Current Assets:
Cash and cash equivalents		$	195,387			$	—			$	195,387
Receivables, net		1,878,151				—				1,878,151
Inventories		400,269				344,953				745,222
Prepayments and other current assets		156,796				—				156,796
Total current assets		2,630,603				344,953				2,975,556
Property and Equipment, net		2,142,944				(795,096		)		1,347,848
Goodwill		5,522,552				—				5,522,552
Other Intangible Assets		2,087,641				—				2,087,641
Other Assets		1,327,074				339,781				1,666,855
		$	13,710,814			$	(110,362	)		$	13,600,452
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term borrowings		$	56,339			$	—			$	56,339
Accounts payable		911,785				—				911,785
Accrued expenses and other current liabilities		1,342,981				(23,526		)		1,319,455
Total current liabilities		2,311,105				(23,526		)		2,287,579
Long-Term Borrowings		7,134,286				—				7,134,286
Deferred Income Taxes and Other Noncurrent Liabilities		1,021,749				(23,544		)		998,205
Redeemable Noncontrolling Interest		9,994				—				9,994
Stockholders' Equity:
Common stock		2,812				—				2,812
Capital surplus		3,180,943				—				3,180,943
Retained earnings		992,736				(63,292		)		929,444
Accumulated other comprehensive loss		(141,651		)		—				(141,651		)
Treasury stock		(801,160		)		—				(801,160		)
Total stockholders' equity		3,233,680				(63,292		)		3,170,388
		$	13,710,814			$	(110,362	)		$	13,600,452

Disaggregation of Revenue

The following table presents revenue disaggregated by revenue source (in millions):

		Three Months Ended				Six Months Ended
		March 29, 2019				March 29, 2019
FSS United States:
Business & Industry		$	394.8			$	794.7
Education		901.6				1,917.9
Healthcare		221.4				484.7
Sports, Leisure & Corrections		504.7				1,099.0
Facilities & Other		394.5				781.0
Total FSS United States		$	2,417.0			$	5,077.3
FSS International:
Europe		512.0				1,032.2
Rest of World		430.0				863.0
Total FSS International		$	942.0			$	1,895.2
Uniform		$	641.0			$	1,292.8
Total Revenue		$	4,000.0			$	8,265.3

Contract with Customer, Asset and Liability

Below is a summary of the changes (in millions):

		Balance, September 28, 2018				Add: Net increase in current period deferred income			Less: Recognition of deferred income			Balance, March 29, 2019
Deferred income		$	281.5			628.5			(676.4	)		$	233.6

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- Definition

Tabular disclosure of contract balances and changes in contract balances.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

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