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Condensed Consolidating Financial Statements of Aramark and Subsidiaries | 3 Months Ended
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Dec. 27, 2019
Condensed Financial Information 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) ASI 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, ASI, (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, are non-guarantors and 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 December 27, 2019 (in thousands)
| Aramark (Parent) |  | Issuers |  | Guarantors |  | Non Guarantors |  | Eliminations |  | Consolidated
ASSETS |  |  |  |  |  |  |  |  |  |  |
Current Assets: |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 5 |  |  | $ | 35,168 |  |  | $ | 33,544 |  |  | $ | 195,901 |  |  | $ | — |  |  | $ | 264,618 |
Receivables | — |  |  | 1,388 |  |  | 551,947 |  |  | 1,418,604 |  |  | — |  |  | 1,971,939 |
Inventories | — |  |  | 15,567 |  |  | 284,698 |  |  | 97,668 |  |  | — |  |  | 397,933 |
Prepayments and other current assets | — |  |  | 46,536 |  |  | 68,272 |  |  | 79,609 |  |  | — |  |  | 194,417 |
Total current assets | 5 |  |  | 98,659 |  |  | 938,461 |  |  | 1,791,782 |  |  | — |  |  | 2,828,907 |
Property and Equipment, net | — |  |  | 43,896 |  |  | 1,763,268 |  |  | 350,998 |  |  | — |  |  | 2,158,162 |
Goodwill | — |  |  | 173,104 |  |  | 4,695,304 |  |  | 668,617 |  |  | — |  |  | 5,537,025 |
Investment in and Advances to Subsidiaries | 3,451,571 |  |  | 6,532,122 |  |  | — |  |  | 745,792 |  |  | (10,729,485 | ) |  | — |
Other Intangible Assets | — |  |  | 21,526 |  |  | 1,804,342 |  |  | 187,905 |  |  | — |  |  | 2,013,773 |
Operating Lease Right-of-use Assets | — |  |  | 20,700 |  |  | 457,597 |  |  | 83,575 |  |  | — |  |  | 561,872 |
Other Assets | — |  |  | 18,440 |  |  | 798,897 |  |  | 357,991 |  |  | (2,002 | ) |  | 1,173,326 |
| $ | 3,451,576 |  |  | $ | 6,908,447 |  |  | $ | 10,457,869 |  |  | $ | 4,186,660 |  |  | $ | (10,731,487 | ) |  | $ | 14,273,065 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |
Current Liabilities: |  |  |  |  |  |  |  |  |  |  |
Current maturities of long-term borrowings | $ | — |  |  | $ | 6,662 |  |  | $ | 27,491 |  |  | $ | 48,828 |  |  | $ | — |  |  | $ | 82,981 |
Current operating lease liabilities | — |  |  | 2,194 |  |  | 54,742 |  |  | 18,815 |  |  | — |  |  | 75,751 |
Accounts payable | — |  |  | 128,402 |  |  | 421,271 |  |  | 305,541 |  |  | — |  |  | 855,214 |
Accrued expenses and other current liabilities | — |  |  | 208,474 |  |  | 710,173 |  |  | 364,812 |  |  | 88 |  |  | 1,283,547 |
Total current liabilities | — |  |  | 345,732 |  |  | 1,213,677 |  |  | 737,996 |  |  | 88 |  |  | 2,297,493 |
Long-term Borrowings | — |  |  | 6,076,564 |  |  | 76,619 |  |  | 934,537 |  |  | — |  |  | 7,087,720 |
Noncurrent Operating Lease Liabilities | — |  |  | 17,348 |  |  | 263,244 |  |  | 64,908 |  |  | — |  |  | 345,500 |
Deferred Income Taxes and Other Noncurrent Liabilities | — |  |  | 366,329 |  |  | 549,167 |  |  | 165,272 |  |  | — |  |  | 1,080,768 |
Intercompany Payable | — |  |  | — |  |  | 4,411,209 |  |  | 385,850 |  |  | (4,797,059 | ) |  | — |
Redeemable Noncontrolling Interest | — |  |  | — |  |  | 10,008 |  |  | — |  |  | — |  |  | 10,008 |
Total Stockholders' Equity | 3,451,576 |  |  | 102,474 |  |  | 3,933,945 |  |  | 1,898,097 |  |  | (5,934,516 | ) |  | 3,451,576 |
| $ | 3,451,576 |  |  | $ | 6,908,447 |  |  | $ | 10,457,869 |  |  | $ | 4,186,660 |  |  | $ | (10,731,487 | ) |  | $ | 14,273,065 |
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 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 27, 2019 (in thousands)
| Aramark (Parent) |  | Issuers |  | Guarantors |  | Non Guarantors |  | Eliminations |  | Consolidated
Revenue | $ | — |  |  | $ | 268,435 |  |  | $ | 2,840,056 |  |  | $ | 1,145,106 |  |  | $ | — |  |  | $ | 4,253,597 |
Costs and Expenses: |  |  |  |  |  |  |  |  |  |  |
Cost of services provided | — |  |  | 246,308 |  |  | 2,473,177 |  |  | 1,048,628 |  |  | — |  |  | 3,768,113 |
Depreciation and amortization | — |  |  | 11,944 |  |  | 109,237 |  |  | 26,755 |  |  | — |  |  | 147,936 |
Selling and general corporate expenses | — |  |  | 30,179 |  |  | 46,240 |  |  | 6,836 |  |  | — |  |  | 83,255 |
Interest and other financing costs, net | — |  |  | 74,769 |  |  | 645 |  |  | 4,171 |  |  | — |  |  | 79,585 |
Expense allocations | — |  |  | (69,599 | ) |  | 65,378 |  |  | 4,221 |  |  | — |  |  | — |
| — |  |  | 293,601 |  |  | 2,694,677 |  |  | 1,090,611 |  |  | — |  |  | 4,078,889 |
Income (Loss) before Income Tax | — |  |  | (25,166 | ) |  | 145,379 |  |  | 54,495 |  |  | — |  |  | 174,708 |
Provision (Benefit) for Income Taxes | — |  |  | (7,352 | ) |  | 22,209 |  |  | 13,968 |  |  | — |  |  | 28,825 |
Equity in Net Income of Subsidiaries | 145,761 |  |  | — |  |  | — |  |  | — |  |  | (145,761 | ) |  | — |
Net income (loss) | 145,761 |  |  | (17,814 | ) |  | 123,170 |  |  | 40,527 |  |  | (145,761 | ) |  | 145,883 |
Less: Net income attributable to noncontrolling interest | — |  |  | — |  |  | 122 |  |  | — |  |  | — |  |  | 122 |
Net income (loss) attributable to Aramark stockholders | 145,761 |  |  | (17,814 | ) |  | 123,048 |  |  | 40,527 |  |  | (145,761 | ) |  | 145,761 |
Other comprehensive income, net of tax | 21,200 |  |  | 8,018 |  |  | 1,486 |  |  | 36,544 |  |  | (46,048 | ) |  | 21,200 |
Comprehensive income (loss) attributable to Aramark stockholders | $ | 166,961 |  |  | $ | (9,796 | ) |  | $ | 124,534 |  |  | $ | 77,071 |  |  | $ | (191,809 | ) |  | $ | 166,961 |
CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the three months ended December 28, 2018 (in thousands)
| Aramark (Parent) |  | Issuers |  | Guarantors |  | Non Guarantors |  | Eliminations |  | Consolidated
Revenue | $ | — |  |  | $ | 268,522 |  |  | $ | 2,848,927 |  |  | $ | 1,147,900 |  |  | $ | — |  |  | $ | 4,265,349 |
Costs and Expenses: |  |  |  |  |  |  |  |  |  |  |
Cost of services provided | — |  |  | 246,609 |  |  | 2,464,602 |  |  | 1,083,234 |  |  | — |  |  | 3,794,445 |
Depreciation and amortization | — |  |  | 4,472 |  |  | 120,982 |  |  | 25,267 |  |  | — |  |  | 150,721 |
Selling and general corporate expenses | — |  |  | 55,742 |  |  | 41,552 |  |  | 6,836 |  |  | — |  |  | 104,130 |
Gain on sale of Healthcare Technologies | — |  |  | — |  |  | (157,309 | ) |  | — |  |  | — |  |  | (157,309 | )
Interest and other financing costs, net | — |  |  | 78,560 |  |  | 971 |  |  | 3,447 |  |  | — |  |  | 82,978 |
Expense allocations | — |  |  | (230,589 | ) |  | 225,801 |  |  | 4,788 |  |  | — |  |  | — |
| — |  |  | 154,794 |  |  | 2,696,599 |  |  | 1,123,572 |  |  | — |  |  | 3,974,965 |
Income before Income Taxes | — |  |  | 113,728 |  |  | 152,328 |  |  | 24,328 |  |  | — |  |  | 290,384 |
Provision for Income Taxes | — |  |  | 8,741 |  |  | 25,000 |  |  | 5,967 |  |  | — |  |  | 39,708 |
Equity in Net Income of Subsidiaries | 250,682 |  |  | — |  |  | — |  |  | — |  |  | (250,682 | ) |  | — |
Net income | 250,682 |  |  | 104,987 |  |  | 127,328 |  |  | 18,361 |  |  | (250,682 | ) |  | 250,676 |
Less: Net loss attributable to noncontrolling interest | — |  |  | — |  |  | (6 | ) |  | — |  |  | — |  |  | (6 | )
Net income attributable to Aramark stockholders | 250,682 |  |  | 104,987 |  |  | 127,334 |  |  | 18,361 |  |  | (250,682 | ) |  | 250,682 |
Other comprehensive loss, net of tax | (41,773 | ) |  | (27,351 | ) |  | — |  |  | (44,951 | ) |  | 72,302 |  |  | (41,773 | )
Comprehensive income (loss) attributable to Aramark stockholders | $ | 208,909 |  |  | $ | 77,636 |  |  | $ | 127,334 |  |  | $ | (26,590 | ) |  | $ | (178,380 | ) |  | $ | 208,909 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 27, 2019 (in thousands)
| Aramark (Parent) |  | Issuers |  | Guarantors |  | Non Guarantors |  | Eliminations |  | Consolidated
Net cash used in operating activities | $ | — |  |  | $ | (38,011 | ) |  | $ | (153,914 | ) |  | $ | (117,559 | ) |  | $ | — |  |  | $ | (309,484 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |
Purchases of property and equipment and other | — |  |  | (12,141 | ) |  | (72,678 | ) |  | (14,377 | ) |  | — |  |  | (99,196 | )
Disposals of property and equipment | — |  |  | 324 |  |  | 438 |  |  | 2,884 |  |  | — |  |  | 3,646 |
Acquisitions of businesses, net of cash acquired | — |  |  | — |  |  | (3,205 | ) |  | (3,897 | ) |  | — |  |  | (7,102 | )
Proceeds from governmental agencies related to property and equipment | — |  |  | — |  |  | 15,250 |  |  | — |  |  | — |  |  | 15,250 |
Other investing activities | — |  |  | (14 | ) |  | (1,380 | ) |  | 1,445 |  |  | — |  |  | 51 |
Net cash used in investing activities | — |  |  | (11,831 | ) |  | (61,575 | ) |  | (13,945 | ) |  | — |  |  | (87,351 | )
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |
Proceeds from long-term borrowings | — |  |  | — |  |  | — |  |  | 58,671 |  |  | — |  |  | 58,671 |
Payments of long-term borrowings | — |  |  | (21,151 | ) |  | (7,765 | ) |  | (9,469 | ) |  | — |  |  | (38,385 | )
Net change in funding under the Receivables Facility | — |  |  | — |  |  | — |  |  | 450,000 |  |  | — |  |  | 450,000 |
Payments of dividends | — |  |  | (27,483 | ) |  | — |  |  | — |  |  | — |  |  | (27,483 | )
Proceeds from issuance of common stock | — |  |  | 26,089 |  |  | — |  |  | — |  |  | — |  |  | 26,089 |
Repurchase of common stock | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other financing activities | — |  |  | (56,471 | ) |  | (858 | ) |  | — |  |  | — |  |  | (57,329 | )
Change in intercompany, net | — |  |  | 130,516 |  |  | 217,112 |  |  | (347,628 | ) |  | — |  |  | — |
Net cash provided by financing activities | — |  |  | 51,500 |  |  | 208,489 |  |  | 151,574 |  |  | — |  |  | 411,563 |
Effect of foreign exchange rates on cash and cash equivalents | — |  |  | — |  |  | — |  |  | 3,247 |  |  | — |  |  | 3,247 |
Increase (decrease) in cash and cash equivalents | — |  |  | 1,658 |  |  | (7,000 | ) |  | 23,317 |  |  | — |  |  | 17,975 |
Cash and cash equivalents, beginning of period | 5 |  |  | 33,510 |  |  | 40,544 |  |  | 172,584 |  |  | — |  |  | 246,643 |
Cash and cash equivalents, end of period | $ | 5 |  |  | $ | 35,168 |  |  | $ | 33,544 |  |  | $ | 195,901 |  |  | $ | — |  |  | $ | 264,618 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the three months ended December 28, 2018 (in thousands)
| Aramark (Parent) |  | Issuers |  | Guarantors |  | Non Guarantors |  | Eliminations |  | Consolidated
Net cash provided by (used in) operating activities | $ | — |  |  | $ | 172,881 |  |  | $ | (328,363 | ) |  | $ | (43,680 | ) |  | $ | (4,500 | ) |  | $ | (203,662 | )
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |
Purchases of property and equipment and other | — |  |  | (4,454 | ) |  | (89,443 | ) |  | (20,503 | ) |  | — |  |  | (114,400 | )
Disposals of property and equipment | — |  |  | 50 |  |  | 564 |  |  | 340 |  |  | — |  |  | 954 |
Proceeds from divestiture | — |  |  | — |  |  | 293,711 |  |  | — |  |  | — |  |  | 293,711 |
Acquisitions of businesses, net of cash acquired | — |  |  | — |  |  | (5,033 | ) |  | (224 | ) |  | — |  |  | (5,257 | )
Proceeds from governmental agencies related to property and equipment | — |  |  | — |  |  | 16,200 |  |  | — |  |  | — |  |  | 16,200 |
Other investing activities | — |  |  | 862 |  |  | 1,744 |  |  | 337 |  |  | — |  |  | 2,943 |
Net cash (used in) provided by investing activities | — |  |  | (3,542 | ) |  | 217,743 |  |  | (20,050 | ) |  | — |  |  | 194,151 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |
Proceeds from long-term borrowings | — |  |  | — |  |  | — |  |  | 72,723 |  |  | — |  |  | 72,723 |
Payments of long-term borrowings | — |  |  | (278,339 | ) |  | (8,781 | ) |  | (26,911 | ) |  | — |  |  | (314,031 | )
Net change in funding under the Receivables Facility | — |  |  | — |  |  | — |  |  | 390,000 |  |  | — |  |  | 390,000 |
Payments of dividends | — |  |  | (27,161 | ) |  | — |  |  | — |  |  | — |  |  | (27,161 | )
Proceeds from issuance of common stock | — |  |  | 1,077 |  |  | — |  |  | — |  |  | — |  |  | 1,077 |
Repurchase of common stock | — |  |  | (50,000 | ) |  | — |  |  | — |  |  | — |  |  | (50,000 | )
Other financing activities | — |  |  | (23,447 | ) |  | (929 | ) |  | (113 | ) |  | — |  |  | (24,489 | )
Change in intercompany, net | — |  |  | 203,883 |  |  | 121,522 |  |  | (329,905 | ) |  | 4,500 |  |  | — |
Net cash (used in) provided by financing activities | — |  |  | (173,987 | ) |  | 111,812 |  |  | 105,794 |  |  | 4,500 |  |  | 48,119 |
Effect of foreign exchange rates on cash and cash equivalents | — |  |  | — |  |  | — |  |  | (3,752 | ) |  | — |  |  | (3,752 | )
(Decrease) increase in cash and cash equivalents | — |  |  | (4,648 | ) |  | 1,192 |  |  | 38,312 |  |  | — |  |  | 34,856 |
Cash and cash equivalents, beginning of period | 5 |  |  | 50,716 |  |  | 29,844 |  |  | 134,460 |  |  | — |  |  | 215,025 |
Cash and cash equivalents, end of period | $ | 5 |  |  | $ | 46,068 |  |  | $ | 31,036 |  |  | $ | 172,772 |  |  | $ | — |  |  | $ | 249,881 |

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=108774443&loc=d3e5283-111683 + Details
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