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Nature of Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Oct. 02, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Components of Comprehensive Income

The summary of the components of comprehensive (loss) income is as follows (in thousands):

			Fiscal Year Ended
			October 2, 2020												September 27, 2019												September 28, 2018
			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 (loss) income									$	(461,435)											$	448,466											$	568,440
Pension plan adjustments			(33,831)			8,162			(25,669)						(29,137)			6,543			(22,594)						29,650			(9,003)			20,647
Foreign currency translation adjustments			(6,348)			(1,470)			(7,818)						(34,099)			(209)			(34,308)						(31,003)			(250)			(31,253)
Cash flow hedges:
Unrealized (losses) gains arising during the period			(110,817)			28,812			(82,005)						(84,392)			21,942			(62,450)						55,445			(16,134)			39,311
Reclassification adjustments			34,409			(8,946)			25,463						(6,484)			1,686			(4,798)						5,185			(1,510)			3,675
Share of equity investee's comprehensive (loss) income			(264)			—			(264)						(1,592)			—			(1,592)						157			—			157
Other comprehensive (loss) income			(116,851)			26,558			(90,293)						(155,704)			29,962			(125,742)						59,434			(26,897)			32,537
Comprehensive (loss) income									(551,728)												322,724												600,977
Less: Net income (loss) attributable to noncontrolling interest									94												(83)												555
Comprehensive (loss) income attributable to Aramark stockholders									$	(551,822)											$	322,807											$	600,422

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consists of the following (in thousands):

			October 2, 2020						September 27, 2019
Pension plan adjustments			$	(72,891)					$	(47,222)
Foreign currency translation adjustments			(135,937)						(128,119)
Cash flow hedges			(87,598)						(31,056)
Share of equity investee's accumulated other comprehensive loss			(10,832)						(10,568)
			$	(307,258)					$	(216,965)

Schedule of Components of Inventories

The components of inventories are as follows: 

						October 2, 2020						September 27, 2019
Food(1)						42.7		%				54.3		%
Career apparel and linens(2)						52.2		%				40.5		%
Parts, supplies and novelties						5.1		%				5.2		%
						100.0		%				100.0		%

(1)			Food inventory declined during fiscal 2020 as a result of reduced operations from the COVID-19 pandemic ("COVID-19").
(2)			Career apparel and linens inventory increased during fiscal 2020 driven by increased production and distribution of PPE in the Uniform segment in response to COVID-19.

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):

						October 2, 2020						September 27, 2019
Prepaid Insurance						$	13,396					$	13,512
Prepaid Taxes and Licenses						11,130						12,399
Current Income Tax Asset(1)						123,608						35,107
Other Prepaid Expenses						150,810						132,443
						$	298,944					$	193,461

(1) Fiscal 2020 income tax receivable driven by the net loss position during the year.

Schedule of Other Assets

Other Assets

The following table presents details of "Other Assets" as presented in the Consolidated Balance Sheets (in thousands):

						October 2, 2020						September 27, 2019
Long-term prepaid rent(1)						$	—					$	166,931
Cost to fulfill - Client(1)						113,940						109,401
Cost to fulfill - Rental merchandise in-service(2)						311,238						356,853
Long-term receivables						28,460						27,574
Miscellaneous investments(3)						262,609						264,452
Computer software costs, net(4)						177,136						170,510
Employee sales commissions(5)						122,011						111,001
Other(6)						142,712						137,084
						$	1,158,106					$	1,343,806

(1)			Prior to the Company's adoption of ASC 606, Revenue from Contracts with Customers, in fiscal 2019, client contract investments generally represented a cash payment provided by the Company for improvement or renovation at the facility from which the Company operated. These amounts were amortized over the contract period. If the contract was terminated prior to its maturity date, the Company was reimbursed for the unamortized client contract investment amounts. Amortization expense was $183.6 million during fiscal 2018. Subsequent to adoption of ASC 606 in fiscal 2019, these balances were reclassified to either leasehold improvements in "Property and Equipment, net" or to long-term prepaid rent or costs to fulfill - client in "Other Assets" and continue to be expensed over the contract life (see Note 7). Due to the Company's adoption of ASC 842, Leases, in fiscal 2020, all long-term prepaid rent balances were reclassified to "Operating Lease Right-of-use Assets" (see Note 8).
(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, including the Company's 50% ownership in AIM Services Co., Ltd., a Japanese food and support services company (approximately $182.9 million and $180.5 million at October 2, 2020 and September 27, 2019, respectively). 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 October 2, 2020 and September 27, 2019 was $42.5 million and $42.6 million, respectively. During fiscal 2019, the Company recognized an impairment of $7.0 million in "Cost of services provided" related to an equity investment.
(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 to 10 years. The Company recorded non-cash asset write-downs within its FSS United States segment of approximately $26.1 million related to certain information technology assets during the fiscal year ended October 2, 2020, as a result of management decisions to discontinue use of these solutions and from non-renewal or expirations of contracts with specific vendors. These non-cash charges were recorded to “Cost of services provided” in the Consolidated Statements of (Loss) Income for the fiscal year ended October 2, 2020.
(5)			Employee sales commissions represent commission payments made to employees related to new or retained business contracts (see Note 7).
(6)			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):

						October 2, 2020						September 27, 2019
Deferred income(1)(2)						$	291,680					$	345,840
Accrued client expenses(2)						44,419						105,636
Accrued taxes						53,146						61,816
Accrued insurance(3) and interest						174,048						192,695
Other						376,909						420,249
						$	940,202					$	1,126,236

(1)			Includes consideration received in advance from customers prior to the service being performed ($263.8 million and $319.0 million) or from vendors prior to the goods being consumed ($27.9 million and $26.8 million) in fiscal 2020 and fiscal 2019, respectively.
(2)			Decreases in fiscal 2020 driven by the impact of COVID-19, as clients ceased or reduced operations. See below and Note 7.
(3)			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 and workers’ compensation liability programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on our 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):

						October 2, 2020						September 27, 2019
Deferred income taxes (see Note 10)						$	398,777					$	519,904
Deferred compensation						210,884						212,090
Pension-related liabilities						18,044						21,367
Interest rate swap agreements						116,882						43,112
Insurance reserves(1)						143,923						125,293
Other noncurrent liabilities(2)						210,565						167,056
						$	1,099,075					$	1,088,822

(1)			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 and workers’ compensation liability programs. Reserves are estimated through actuarial methods, with the assistance of third-party actuaries using loss development assumptions based on our claims history.
(2)			Fiscal 2020 includes the payment deferral related to the employer portion of social security taxes as permitted under the Coronavirus Aid, Relief and Economic Security Act.

Schedule of Cash Flow, Supplemental Disclosures

Supplemental Cash Flow Information

						Fiscal Year Ended
(dollars in millions)						October 2, 2020						September 27, 2019						September 28, 2018
Interest paid						$	353.6					$	306.2					$	307.1
Income taxes paid (refunded)(1)						40.2						139.3						(1.1)

(1) During fiscal 2018, the Company was in a net refund position, primarily due to the impact of the TCJA (see Note 10).

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