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Income Taxes (Tables)

12 Months Ended

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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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.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of the change in unrecognized tax benefits.

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