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Income Taxes (Tables) | 12 Months Ended
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Sep. 27, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income from continuing operations before income taxes by source of income | The components of Income from Continuing Operations Before Income Taxes by source of income are as follows (in thousands):
|  | Fiscal Year Ended
|  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022
United States(1) |  | $ | 234,926 |  |  | $ | 119,543 |  |  | $ | (49,276) |
Non-United States(2) |  | 129,939 |  |  | 443,981 |  |  | 96,490 |
|  | $ | 364,865 |  |  | $ | 563,524 |  |  | $ | 47,214 |
(1) | Fiscal 2024 includes gains from sale of equity investments (see Note 1).
(2) | Fiscal 2023 includes gains from sale of equity investments (see Note 1).
Schedule of Provision for income taxes | The Provision for Income Taxes from Continuing Operations consists of the following (in thousands):
|  | Fiscal Year Ended
|  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022
Current: |  |  |  |  |  |
Federal |  | $ | 68,903 |  |  | $ | (5,119) |  |  | $ | (23,014) |
State and local |  | 14,565 |  |  | 4,916 |  |  | (851) |
Non-United States |  | 26,827 |  |  | 16,471 |  |  | 16,390 |
|  | 110,295 |  |  | 16,268 |  |  | (7,475) |
Deferred: |  |  |  |  |  |
Federal(1) |  | (15,761) |  |  | 90,769 |  |  | 17,600 |
State and local |  | 2,915 |  |  | 7,199 |  |  | (1,567) |
Non-United States |  | 5,523 |  |  | 2,190 |  |  | (125) |
|  | (7,323) |  |  | 100,158 |  |  | 15,908 |
|  | $ | 102,972 |  |  | $ | 116,426 |  |  | $ | 8,433 |
(1) | Fiscal 2023 increase in deferred tax expense is a result of the utilization of tax credit carryforward assets.
Schedule of Effective Income Tax Rate Reconciliation | The Provision for Income Taxes from Continuing Operations varies from the amount determined by applying the United States Federal statutory rate to Income from Continuing Operations Before Income Taxes as a result of the following (all percentages are as a percentage of Income from Continuing Operations Before Income Taxes):
|  | Fiscal Year Ended
|  | September 27, 2024 |  | September 29, 2023 |  | September 30, 2022
United States statutory income tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) in taxes, resulting from: |  |  |  |  |  |
State income taxes, net of Federal tax benefit |  | 3.8 |  |  | 1.7 |  |  | 5.2 |
Foreign taxes |  | 3.3 |  |  | 1.7 |  |  | 18.4 |
Reduction of foreign valuation allowances |  | (0.7) |  |  | (0.6) |  |  | (11.5) |
Permanent book/tax differences |  | 2.6 |  |  | (0.8) |  |  | 13.2 |
Uncertain tax positions |  | 0.4 |  |  | 0.8 |  |  | 5.4 |
Foreign tax credit valuation allowance |  | 0.3 |  |  | (0.8) |  |  | (1.5) |
Sale of investments(1) |  | — |  |  | (0.5) |  |  | — |
Pennsylvania Rate Change Impact |  | — |  |  | — |  |  | (8.1) |
Tax credits & other |  | (2.5) |  |  | (1.8) |  |  | (24.2) |
Effective income tax rate |  | 28.2 | % |  | 20.7 | % |  | 17.9 | %
(1) | Includes mainly capital tax gains related to the sale of the Company's equity investment in AIM Services Co., Ltd. offset by capital tax losses in certain investments in foreign entities.
Schedule of Components of deferred taxes | As of September 27, 2024 and September 29, 2023, the components of Deferred Income Taxes are as follows (in thousands):
|  | September 27, 2024 |  | September 29, 2023
Deferred tax liabilities: |  |  |  |
Derivatives |  | $ | 12,816 |  |  | $ | 38,339 |
Property and equipment |  | 2,023 |  |  | — |
Investments |  | — |  |  | 13,864 |
Other intangible assets, including goodwill |  | 580,138 |  |  | 556,708 |
Inventory |  | — |  |  | 743 |
Operating Lease Right-of-use Assets |  | 46,729 |  |  | 46,989 |
Computer software costs and other |  | 23,283 |  |  | 23,172 |
Gross deferred tax liability |  | 664,989 |  |  | 679,815 |
Deferred tax assets: |  |  |  |
Investments |  | 8,721 |  |  | — |
Inventory |  | 6,261 |  |  | — |
Insurance |  | 14,670 |  |  | 13,110 |
Property and Equipment |  | — |  |  | 1,755 |
Employee compensation and benefits |  | 93,102 |  |  | 103,839 |
Accruals and allowances |  | 17,716 |  |  | 9,647 |
Operating lease liabilities |  | 56,532 |  |  | 57,898 |
NOL/credit carryforwards and other |  | 193,152 |  |  | 187,467 |
Gross deferred tax asset, before valuation allowances |  | 390,154 |  |  | 373,716 |
Valuation allowances |  | (80,552) |  |  | (78,194) |
Net deferred tax liability |  | $ | 355,387 |  |  | $ | 384,293 |
Schedule of Valuation and Qualifying Accounts Disclosure | Rollforward of the valuation allowance is as follows:
|  | September 27, 2024 |  | September 29, 2023
Balance, beginning of year |  | $ | (78,194) |  |  | $ | (83,827) |
Additions(1) |  | (5,810) |  |  | — |
Subtractions(2) |  | 3,452 |  |  | 5,633 |
Balance, end of year |  | $ | (80,552) |  |  | $ | (78,194) |
(1) | The Additions are mainly driven by a valuation allowance recorded related to pension assets in the FSS International segment.
(2) | The Subtractions are mainly driven by the reversal of a valuation allowance based on future taxable income expected due to acquisitions of businesses in the FSS International segment.
ARAMARK AND SUBSIDIARIES SCHEDULE II -- VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE FISCAL YEARS ENDED SEPTEMBER 27, 2024, SEPTEMBER 29, 2023 AND SEPTEMBER 30, 2022
(in thousands) |  | Balance, Beginning of Period |  | Charge/(Reversal) to Income (1) |  | Write-offs and Other (2) |  | Balance, End of Period
Description |  |  |  |  |  |  |  |
Fiscal Year 2024 |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 31,506 |  |  | $ | 20,102 |  |  | $ | (17,349) |  |  | $ | 34,259 |
Fiscal Year 2023 |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 27,288 |  |  | $ | 17,573 |  |  | $ | (13,355) |  |  | $ | 31,506 |
Fiscal Year 2022 |  |  |  |  |  |  |  |
Allowance for credit losses |  | $ | 45,540 |  |  | $ | (7,788) |  |  | $ | (10,464) |  |  | $ | 27,288 |
(1) | Represents an increase (or decrease) in the reserve for estimated future credit losses charged to expense.
(2) | Amounts determined not to be collectible and charged against the reserve and translation. These amounts do not impact the Consolidated Statements of Income.
Schedule of Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows (in thousands):
| September 27, 2024 |  | September 29, 2023
Balance, beginning of year | $ | 69,128 |  |  | $ | 80,220 |
Additions based on tax positions taken in the current year | 754 |  |  | 4,433 |
Additions for tax positions taken in prior years | 3,370 |  |  | — |
Reductions for remeasurements, settlements and payments(1) | (1,493) |  |  | (13,636) |
Reductions due to statute expiration | (1,571) |  |  | (1,889) |
Balance, end of year | $ | 70,188 |  |  | $ | 69,128 |
(1) | Fiscal 2023 includes a remeasurement of foreign tax credit assets that are available to reduce a position taken in prior years.

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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