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Revenue Recognition (Tables)

9 Months Ended

Jun. 28, 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 nine month period ended June 28, 2019, to the balances had the previous revenue accounting guidance remained in effect (in thousands):

		Three Months Ended June 28, 2019
		As Reported				Adoption adjustments of ASC 606				Balances without adoption of ASC 606
Revenue		$	4,010,761			$	(80,343	)		$	3,930,418
Costs and Expenses:
Cost of services provided		3,594,978				(82,624		)		3,512,354
Depreciation and amortization		148,779				5,173				153,952
Selling and general corporate expenses		78,185				—				78,185
		3,821,942				(77,451		)		3,744,491
Operating income		188,819				(2,892		)		185,927
Interest and Other Financing Costs, net		82,220				—				82,220
Income Before Income Taxes		106,599				(2,892		)		103,707
Provision for Income Taxes		23,535				(749		)		22,786
Net income		83,064				(2,143		)		80,921
Less: Net income attributable to noncontrolling interest		109				—				109
Net income attributable to Aramark stockholders		$	82,955			$	(2,143	)		$	80,812

		Nine Months Ended June 28, 2019
		As Reported				Adoption adjustments of ASC 606				Balances without adoption of ASC 606
Revenue		$	12,276,097			$	(260,433	)		$	12,015,664
Costs and Expenses:
Cost of services provided		11,029,382				(265,821		)		10,763,561
Depreciation and amortization		447,408				13,072				460,480
Selling and general corporate expenses		270,600				—				270,600
Gain on sale of Healthcare Technologies		(156,309		)		—				(156,309		)
		11,591,081				(252,749		)		11,338,332
Operating income		685,016				(7,684		)		677,332
Interest and Other Financing Costs, net		249,375				—				249,375
Income Before Income Taxes		435,641				(7,684		)		427,957
Provision for Income Taxes		72,589				(1,990		)		70,599
Net income		363,052				(5,694		)		357,358
Less: Net income attributable to noncontrolling interest		60				—				60
Net income attributable to Aramark stockholders		$	362,992			$	(5,694	)		$	357,298

The following table compares the reported Condensed Consolidated Balance Sheet as of June 28, 2019, to the balances had the previous revenue accounting guidance remained in effect (in thousands):

		June 28, 2019
		As Reported				Adoption adjustments of ASC 606				Balances without adoption of ASC 606
ASSETS
Current Assets:
Cash and cash equivalents		$	220,055			$	—			$	220,055
Receivables, net		1,832,911				—				1,832,911
Inventories		393,115				355,154				748,269
Prepayments and other current assets		196,044				—				196,044
Total current assets		2,642,125				355,154				2,997,279
Property and Equipment, net		2,143,765				(792,022		)		1,351,743
Goodwill		5,526,301				—				5,526,301
Other Intangible Assets		2,064,637				—				2,064,637
Other Assets		1,352,674				324,848				1,677,522
		$	13,729,502			$	(112,020	)		$	13,617,482
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term borrowings		$	53,749			$	—			$	53,749
Accounts payable		819,922				—				819,922
Accrued expenses and other current liabilities		1,285,725				(23,526		)		1,262,199
Total current liabilities		2,159,396				(23,526		)		2,135,870
Long-Term Borrowings		7,198,918				—				7,198,918
Deferred Income Taxes and Other Noncurrent Liabilities		1,075,198				(23,973		)		1,051,225
Redeemable Noncontrolling Interest		10,068				—				10,068
Stockholders' Equity:
Common stock		2,819				—				2,819
Capital surplus		3,208,399				—				3,208,399
Retained earnings		1,048,606				(64,521		)		984,085
Accumulated other comprehensive loss		(170,838		)		—				(170,838		)
Treasury stock		(803,064		)		—				(803,064		)
Total stockholders' equity		3,285,922				(64,521		)		3,221,401
		$	13,729,502			$	(112,020	)		$	13,617,482

Disaggregation of Revenue

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

		Three Months Ended				Nine Months Ended
		June 28, 2019				June 28, 2019
FSS United States:
Business & Industry		$	404.4			$	1,199.1
Education		707.6				2,625.5
Healthcare		224.0				708.7
Sports, Leisure & Corrections		681.4				1,780.4
Facilities & Other		396.1				1,177.1
Total FSS United States		$	2,413.5			$	7,490.8
FSS International:
Europe		527.0				1,559.2
Rest of World		422.9				1,285.9
Total FSS International		$	949.9			$	2,845.1
Uniform		$	647.4			$	1,940.2
Total Revenue		$	4,010.8			$	12,276.1

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, June 28, 2019
Deferred income		$	281.5			828.6			(976.8	)		$	133.3

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- Definition

Tabular disclosure of contract balances and changes in contract balances.

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-Publisher FASB
-Name Accounting Standards Codification
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