Condensed Consolidating Financial Statements of Aramark and Subsidiaries (Tables)

6 Months Ended

Mar. 27, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Consolidated Balance Sheet

CONDENSED CONSOLIDATING BALANCE SHEETS

March 27, 2020

(in thousands)


	Aramark (Parent)		Issuers		Guarantors		Non Guarantors		Eliminations		Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	5	$	925,933	$	14,447	$	262,579	$	—	$	1,202,964
Receivables	—		1,275		522,767		1,326,938		—		1,850,980
Inventories	—		15,063		291,145		97,591		—		403,799
Prepayments and other current assets	—		50,916		72,744		74,932		—		198,592
Total current assets	5		993,187		901,103		1,762,040		—		3,656,335
Property and Equipment, net	—		46,986		1,748,603		333,717		—		2,129,306
Goodwill	—		173,104		4,698,444		448,078		—		5,319,626
Investment in and Advances to Subsidiaries	3,169,440		6,429,972		—		717,942		(10,317,354)		—
Other Intangible Assets	—		29,684		1,772,561		183,834		—		1,986,079
Operating Lease Right-of-use Assets	—		24,061		474,989		80,669		—		579,719
Other Assets	—		17,664		797,653		363,118		(2,002)		1,176,433
	$	3,169,445	$	7,714,658	$	10,393,353	$	3,889,398	$	(10,319,356)	$	14,847,498
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities of long-term borrowings	$	—	$	16,255	$	26,957	$	60,194	$	—	$	103,406
Current operating lease liabilities	—		—		57,153		18,552		—		75,705
Accounts payable	—		109,355		417,054		267,055		—		793,464
Accrued expenses and other current liabilities	—		169,767		813,669		341,758		88		1,325,282
Total current liabilities	—		295,377		1,314,833		687,559		88		2,297,857
Long-term Borrowings	—		6,922,575		76,097		863,915		—		7,862,587
Noncurrent Operating Lease Liabilities	—		25,151		267,323		62,359		—		354,833
Deferred Income Taxes and Other Noncurrent Liabilities	—		418,455		553,380		180,715		—		1,152,550
Intercompany Payable	—		—		4,213,629		481,280		(4,694,909)		—
Redeemable Noncontrolling Interest	—		—		10,226		—		—		10,226
Total Stockholders' Equity	3,169,445		53,100		3,957,865		1,613,570		(5,624,535)		3,169,445
	$	3,169,445	$	7,714,658	$	10,393,353	$	3,889,398	$	(10,319,356)	$	14,847,498

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

Schedule of Condensed Consolidated Income Statement

CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME

For the three months ended March 27, 2020

(in thousands)


	Aramark (Parent)		Issuers		Guarantors		Non Guarantors		Eliminations		Consolidated
Revenue	$	—	$	242,524	$	2,482,563	$	1,006,472	$	—	$	3,731,559
Costs and Expenses:
Cost of services provided	—		216,008		2,219,994		971,587		—		3,407,589
Depreciation and amortization	—		4,413		117,667		25,895		—		147,975
Selling and general corporate expenses	—		20,374		46,783		7,914		—		75,071
Goodwill impairment	—		—		—		198,600		—		198,600
Interest and other financing costs, net	—		93,396		661		5,765		—		99,822
Expense allocations	—		(85,395)		82,327		3,068		—		—
	—		248,796		2,467,432		1,212,829		—		3,929,057
Income (Loss) before Income Tax	—		(6,272)		15,131		(206,357)		—		(197,498)
Provision (Benefit) for Income Taxes	—		4,277		(11,040)		11,286		—		4,523
Equity in Net Income of Subsidiaries	(202,260)		—		—		—		202,260		—
Net (loss) income	(202,260)		(10,549)		26,171		(217,643)		202,260		(202,021)
Less: Net income attributable to noncontrolling interest	—		—		239		—		—		239
Net (loss) income attributable to Aramark stockholders	(202,260)		(10,549)		25,932		(217,643)		202,260		(202,260)
Other comprehensive loss, net of tax	(108,245)		(67,199)		(2,055)		(60,482)		129,736		(108,245)
Comprehensive (loss) income attributable to Aramark stockholders	$	(310,505)	$	(77,748)	$	23,877	$	(278,125)	$	331,996	$	(310,505)

CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME

For the six months ended March 27, 2020

(in thousands)


	Aramark (Parent)		Issuers		Guarantors		Non Guarantors		Eliminations		Consolidated
Revenue	$	—	$	510,959	$	5,322,619	$	2,151,578	$	—	$	7,985,156
Costs and Expenses:
Cost of services provided	—		462,316		4,693,171		2,020,215		—		7,175,702
Depreciation and amortization	—		16,357		226,904		52,650		—		295,911
Selling and general corporate expenses	—		50,553		93,023		14,750		—		158,326
Goodwill impairment	—		—		—		198,600		—		198,600
Interest and other financing costs, net	—		168,165		1,306		9,936		—		179,407
Expense allocations	—		(154,994)		147,705		7,289		—		—
	—		542,397		5,162,109		2,303,440		—		8,007,946
(Loss) Income before Income Tax	—		(31,438)		160,510		(151,862)		—		(22,790)
(Benefit) Provision for Income Taxes	—		(3,075)		11,169		25,254		—		33,348
Equity in Net Income of Subsidiaries	(56,499)		—		—		—		56,499		—
Net (loss) income	(56,499)		(28,363)		149,341		(177,116)		56,499		(56,138)
Less: Net income attributable to noncontrolling interest	—		—		361		—		—		361
Net (loss) income attributable to Aramark stockholders	(56,499)		(28,363)		148,980		(177,116)		56,499		(56,499)
Other comprehensive loss, net of tax	(87,045)		(59,181)		(569)		(23,938)		83,688		(87,045)
Comprehensive (loss) income attributable to Aramark stockholders	$	(143,544)	$	(87,544)	$	148,411	$	(201,054)	$	140,187	$	(143,544)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

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
(Loss) Income before Income Taxes	—		(178,119)		177,904		38,872		—		38,657
(Benefit) Provision 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 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 (LOSS) AND COMPREHENSIVE INCOME (LOSS)

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
(Loss) Income before Income Taxes	—		(64,390)		330,232		63,200		—		329,042
(Benefit) Provision for Income Taxes	—		(27,017)		60,298		15,773		—		49,054
Equity in Net Income of Subsidiaries	280,037		—		—		—		(280,037)		—
Net income (loss)	280,037		(37,373)		269,934		47,427		(280,037)		279,988
Less: Net loss attributable to noncontrolling interest	—		—		(49)		—		—		(49)
Net income (loss) 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

Schedule of Condensed Consolidated Cash Flow Statement

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the six months ended March 27, 2020

(in thousands)


	Aramark (Parent)		Issuers		Guarantors		Non Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	—	$	(122,174)	$	112,309	$	(75,404)	$	(6,357)	$	(91,626)
Cash flows from investing activities:
Purchases of property and equipment and other	—		(23,291)		(158,754)		(31,524)		—		(213,569)
Disposals of property and equipment	—		506		4,257		3,475		—		8,238

Acquisitions of businesses, net of cash acquired	—		—		(10,407)		(4,515)		—		(14,922)
Proceeds from governmental agencies related to property and equipment	—		—		23,550		—		—		23,550
Other investing activities	—		(413)		1,019		(491)		—		115
Net cash used in investing activities	—		(23,198)		(140,335)		(33,055)		—		(196,588)
Cash flows from financing activities:
Proceeds from long-term borrowings	—		1,743,875		—		79,080		—		1,822,955
Payments of long-term borrowings	—		(902,485)		(15,567)		(17,206)		—		(935,258)
Net change in funding under the Receivables Facility	—		—		—		400,000		—		400,000
Payments of dividends	—		(55,257)		—		—		—		(55,257)
Proceeds from issuance of common stock	—		85,048		—		—		—		85,048
Repurchase of common stock	—		(6,540)		—		—		—		(6,540)
Other financing activities	—		(64,197)		(1,461)		—		—		(65,658)
Change in intercompany, net	—		237,351		18,957		(262,665)		6,357		—
Net cash provided by financing activities	—		1,037,795		1,929		199,209		6,357		1,245,290
Effect of foreign exchange rates on cash and cash equivalents	—		—		—		(755)		—		(755)
Increase (decrease) in cash and cash equivalents	—		892,423		(26,097)		89,995		—		956,321
Cash and cash equivalents, beginning of period	5		33,510		40,544		172,584		—		246,643
Cash and cash equivalents, end of period	$	5	$	925,933	$	14,447	$	262,579	$	—	$	1,202,964

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 (used in) provided by operating activities	$	—	$	(84,943)	$	133,213	$	52,030	$	(11,317)	$	88,983
Cash flows from investing activities:
Purchases of property and equipment and other	—		(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)
Proceeds from governmental agencies related to property and equipment	—		—		16,200		—		—		16,200
Other investing activities	—		178		3,098		(1,031)		—		2,245
Net cash (used in) provided by 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 common 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)
(Decrease) increase 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