Aramark

Previous wording

The following discussion and analysis of Aramark's (the "Company," "we," "our" and "us") financial condition and results of operations for the three and six months ended March 29, 2024 and March 31, 2023 should be read in conjunction with our audited consolidated financial statements and the notes to those statements for the fiscal year ended September 29, 2023 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on November 21, 2023.

Current wording

The following discussion and analysis of Aramark's (the "Company," "we," "our" and "us") financial condition and results of operations for the three and nine months ended June 28, 2024 and June 30, 2023 should be read in conjunction with our audited consolidated financial statements and the notes to those statements for the fiscal year ended September 29, 2023 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on November 21, 2023.

Previous wording

We have seen improving inflation trends where inflationary costs in product, energy and labor have continued to moderate over the first half of fiscal 2024, particularly in the United States. However, inflation remains elevated as compared to historical rates within the United States and abroad. In addition, we continue to see elevated market interest rates and significant changes in foreign currencies. We expect these conditions to continue in the near-term, and we regularly evaluate and believe we take appropriate actions to mitigate risk in these areas. These actions include management of operating costs, including supply chain initiatives and pricing actions, and managing interest rate risk through the use of interest rate swaps.

Current wording

We continue to see improving inflation trends where inflationary costs in product, energy and labor have moderated over the first nine months of fiscal 2024, particularly in the United States. In addition, we continue to see elevated market interest rates and significant changes in foreign currencies. We expect these conditions to continue in the near-term, and we regularly evaluate and believe we take appropriate actions to mitigate risk in these areas. These actions include management of operating costs, including supply chain initiatives and pricing actions, and managing interest rate risk through the use of interest rate swaps.

Previous wording

The following tables present an overview of our results on a consolidated and segment basis with the amount of and percentage change between periods for the three and six months ended March 29, 2024 and March 31, 2023 (in millions).

Current wording

The following tables present an overview of our results on a consolidated and segment basis with the amount of and percentage change between periods for the three and nine months ended June 28, 2024 and June 30, 2023 (in millions).

Previous wording

(1) As a percentage of total revenue, FSS United States represented 72.5% and 72.6% and FSS International represented 27.5% and 27.4% for the three months ended March 29, 2024 and March 31, 2023, respectively.

Current wording

(1) As a percentage of total revenue, FSS United States represented 71.9% and 71.3% and FSS International represented 28.1% and 28.7% for the three months ended June 28, 2024 and June 30, 2023, respectively.

Previous wording

(1) As a percentage of total revenue, FSS United States represented 72.7% and 73.6% and FSS International represented 27.3% and 26.4% for the six months ended March 29, 2024 and March 31, 2023, respectively.

Current wording

(1) As a percentage of total revenue, FSS United States represented 72.4% and 72.8% and FSS International represented 27.6% and 27.2% for the nine months ended June 28, 2024 and June 30, 2023, respectively.

Previous wording

Revenue increased by approximately 7.2% and 9.9% during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during these periods was primarily attributable to base business growth, including volume growth and contract price increases, and net new business, partially offset by the negative impact of foreign currency translation (2.1% and 1.1% for the three and six month periods, respectively).

Current wording

Revenue increased by approximately 8.0% and 9.3% during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during these periods was primarily attributable to base business growth, including volume growth and contract price increases, and net new business, partially offset by the negative impact of foreign currency translation (2.9% and 1.7%, respectively).

Previous wording

The following table presents the cost of services provided (exclusive of depreciation and amortization) by segment and as a percent of revenue for the three and six months ended March 29, 2024 and March 31, 2023 (in millions).

Current wording

The following table presents the cost of services provided (exclusive of depreciation and amortization) by segment and as a percent of revenue for the three and nine months ended June 28, 2024 and June 30, 2023 (in millions).

Previous wording

(1) The three and six months ended March 31, 2023 were impacted by non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense of $48.1 million and $74.4 million, respectively (see Note 14 to the condensed consolidated financial statements).

Current wording

(1) The nine months ended June 30, 2023 were impacted by non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense of $72.3 million (see Note 14 to the condensed consolidated financial statements).

Previous wording

(2) The three and six months ended March 31, 2023 were impacted by $25.8 million of severance charges (see Note 3 to the condensed consolidated financial statements).

Current wording

(2) The nine months ended June 30, 2023 were impacted by $25.8 million of severance charges (see Note 3 to the condensed consolidated financial statements).

Previous wording

The following table presents the percentages attributable to the components in cost of services provided (exclusive of depreciation and amortization) for the three and six months ended March 29, 2024 and March 31, 2023.

Current wording

The following table presents the percentages attributable to the components in cost of services provided (exclusive of depreciation and amortization) for the three and nine months ended June 28, 2024 and June 30, 2023.

Previous wording

(1) Food and support service costs represented a lower proportion of total cost of services provided (exclusive of depreciation and amortization) during the three and six months ended March 29, 2024 compared to the prior year periods mainly driven by other direct costs increasing at a higher proportion as compared to food and support service costs and the moderation of product inflationary costs.

Current wording

(1) Food and support service costs represented a lower proportion of total cost of services provided (exclusive of depreciation and amortization) during the nine months ended June 28, 2024 compared to the prior year period mainly driven by other direct costs increasing at a higher proportion as compared to food and support service costs and the moderation of product inflationary costs.

Previous wording

(2) Personnel costs decreased as a percentage of total cost of services provided (exclusive of depreciation and amortization) during the three and six months ended March 29, 2024 compared to the prior year periods due to other direct costs increasing at a higher proportion as compared to personnel costs, prior year severance charges ($29.7 million for the three and six month periods, respectively) (see Note 3 to the condensed consolidated financial statements) and moderation of labor inflationary costs.

Current wording

(2) Personnel costs decreased as a percentage of total cost of services provided (exclusive of depreciation and amortization) during the three and nine months ended June 28, 2024 compared to the prior year periods due to other direct costs increasing at a higher proportion as compared to personnel costs and prior year severance charges ($29.7 million for the nine month period) (see Note 3 to the condensed consolidated financial statements) and moderation of labor inflationary costs.

Previous wording

(3) Other direct costs represented a higher proportion of total cost of services provided (exclusive of depreciation and amortization) during the three and six months ended March 29, 2024 compared to the prior year periods due to prior year non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense ($48.1 million and $74.4 million for the three and six month periods, respectively) (see Note 14 to the condensed consolidated financial statements).

Current wording

(3) Other direct costs represented a higher proportion of total cost of services provided (exclusive of depreciation and amortization) during the three and nine months ended June 28, 2024 compared to the prior year periods due to increased payments made to clients related to business volume growth in the current year. Further, the nine months ended June 30, 2023 was affected by non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense ($72.3 million) (see Note 14 to the condensed consolidated financial statements); partially offset by non-cash impairment charges of operating lease right of use assets, property and equipment and other costs related to certain real estate properties ($19.0 million) (see Note 1 to the consolidated financial statements).

Previous wording

Operating income increased by $33.7 million and $49.0 million during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively, driven by base business volume growth, cost management, improved supply chain economics, favorable recovery of inflationary costs as compared to prior year periods, prior year severance charges ($29.7 million for the three and six month periods) (see Note 3 to the condensed consolidated financial statements) and prior year non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($0.7 million and $19.0 million for the three and six month periods, respectively) (see Note 1 to the condensed consolidated financial statements). The increases in operating income during the three and six month periods of fiscal 2024 more than offset the prior year non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense ($48.1 million and $74.4 million for the three and six month periods, respectively) (see Note 14 to the condensed consolidated financial statements). The increases in operating income during the six month period of fiscal 2024 more than offset higher expenses related to the separation and distribution of the Uniform segment ($25.6 million) (see Note 2 to the condensed consolidated financial statements), the prior year gain relating to the recovery of our investment (possessory interest) at one of the National Park sites ($19.8 million) and prior year income related to favorable loss experience in older insurance years under our general liability, automobile liability and workers' compensation liability programs ($9.8 million).

Current wording

Operating income increased by $29.1 million and $78.1 million during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively, driven by base business volume growth, cost management, improved supply chain economics and favorable recovery of inflationary costs as compared to prior year periods. The increase in operating income during the three month period of fiscal 2024, compared to prior year period, was partially offset by prior year favorable loss experience under our general liability, automobile liability and workers' compensation liability programs ($15.8 million). The increase in operating income during the nine month period of fiscal 2024 was attributable to the factors noted above as well as prior year severance charges ($29.7 million) (see Note 3 to the condensed consolidated financial statements) and prior year non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($19.0 million) (see Note 1 to the condensed consolidated financial statements) and was partially offset by prior year non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense ($72.3 million) (see Note 14 to the condensed consolidated financial statements), prior year favorable loss experience under our general liability, automobile liability and workers' compensation liability programs ($27.1 million), higher expenses related to the separation and distribution of the Uniform segment ($22.1 million) (see Note 2 to the condensed consolidated financial statements) and a prior year gain relating to the recovery of our investment (possessory interest) at one of the National Park sites ($19.8 million).

Previous wording

Interest Expense, net, decreased by 24.0% and 6.3% during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively. The decrease during the three and six month periods of fiscal 2024 was primarily due to lower interest expense related to the repayment of the 6.375% Senior Notes due May 1, 2025 ("6.375% 2025 Notes") (see Note 5 to the condensed consolidated financial statements). The decrease during the three and six month period of fiscal 2024 was partially offset by $1.6 million for the write-off of unamortized deferred financing costs and discount on the U.S. Term B-5

Current wording

Interest Expense, net, decreased by 27.4% and 13.6% during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively. The decrease during the three and nine month periods of fiscal 2024 was primarily due to lower interest expense related to the repayment of the 6.375% Senior Notes due May 1, 2025 ("6.375% 2025 Notes") (see Note 5 to the condensed consolidated financial statements). Additionally, the decrease during the nine month period of fiscal 2024 was partially offset by the payment of a $23.9 million call premium, a $7.9 million non-cash loss for the write-off of unamortized deferred financing costs related to the repayment of the 6.375% 2025 Notes (see Note 5 to the condensed consolidated financial statements), higher borrowings on the Receivables Facility, a $1.6 million non-cash loss for the write-off of unamortized deferred financing costs and discount on the U.S. Term B-5 Loans due 2028 and U.S. Term B-6 Loans due 2030 and transaction costs related to the repricing of these loans (see Note 5 to the condensed consolidated financial statements).

Previous wording

The provision for income taxes for the three and six month periods of fiscal 2024 was recorded at an effective tax rate of 27.1% and 34.8%, respectively. During the six month period ended March 29, 2024, we recorded a $7.1 million valuation allowance recorded against certain foreign tax credits, as it is more likely than not a tax benefit will not be realized due to the reduction of future forecasted foreign income as a result of the separation and distribution of the Uniform segment (see Note 8 to the condensed consolidated financial statements). The benefit for income taxes for the three month period ended March 31, 2023 was recorded at an effective tax rate of 19.9%. The provision for income taxes for the six month period ended March 31, 2023 was recorded at an effective tax rate of 16.6%. During the three and six month periods ended March 31, 2023, we recorded an income tax benefit of approximately $3.8 million for the reversal of a valuation allowance against deferred tax assets within a foreign subsidiary due to an acquisition of a business (see Note 8 to the condensed consolidated financial statements).

Current wording

The provision for income taxes for the three and nine month periods of fiscal 2024 was recorded at an effective tax rate of 27.5% and 32.0%, respectively. During the nine month period ended June 28, 2024, we recorded a $7.1 million valuation allowance recorded against certain foreign tax credits, as it is more likely than not a tax benefit will not be realized due to the reduction of future forecasted foreign income as a result of the separation and distribution of the Uniform segment (see Note 8 to the condensed consolidated financial statements). The provision for income taxes for the three and nine month periods ended June 30, 2023 was recorded at an effective tax rate of 27.7% and 26.2%, respectively. During the three and nine months ended June 30, 2023, we recorded an income tax provision of $101.2 million related to the sale of our 50% ownership interest in AIM Services Co., Ltd. Additionally, during the nine month period ended June 30, 2023, we recorded an income tax benefit of $3.8 million for the reversal of a valuation allowance against deferred tax assets within a foreign subsidiary due to an acquisition of a business (see Note 8 to the condensed consolidated financial statements).

Previous wording

FSS United States segment revenue increased by approximately 7.0% and 8.5% during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during both the three and six month periods of fiscal 2024 was primarily attributable to base business growth, including higher volume primarily within our Sports & Entertainment business and Business & Industry sector, and contract price increases primarily within our Higher Education and Corrections businesses.

Current wording

FSS United States segment revenue increased by approximately 8.8% and 8.6% during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during both the three and nine month periods of fiscal 2024 was primarily attributable to base business growth, including higher volume within our Business & Industry sector and Sports & Entertainment, Higher Education and Corrections businesses, and contract price increases primarily within our Higher Education and Corrections businesses.

Previous wording

Operating income decreased by $6.8 million and increased by $9.4 million during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively. The decrease during the three month period ended March 29, 2024 was mainly attributable to prior year non-cash income from the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense ($48.1 million) (see Note 14 to the condensed consolidated financial statements). Both the three and six month periods of fiscal 2024 benefited from base business volume growth, cost management, improved supply chain economics, favorable recovery of inflationary costs as compared to prior year periods, prior year non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($0.7 million and $19.0 million, respectively) (see Note 1 to the condensed consolidated financial statements) and prior year non-cash charges related to information technology assets ($6.1 million for the three and six month periods). The increases during the six months of fiscal 2024 were partially offset by prior year non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense ($74.4 million) (see Note 14 to the condensed consolidated financial statements), the prior year gain relating to the recovery of our investment (possessory interest) at one of the National Park sites

Current wording

Operating income increased by $16.6 million and $26.0 million during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during both the three and nine month periods of fiscal 2024 was primarily attributable to base business volume growth, cost management, improved supply chain economics and favorable recovery of inflationary costs as compared to prior year periods, partially offset by prior year favorable loss experience under our general liability, automobile liability and workers' compensation liability programs ($15.8 million and $27.1 million, respectively). The increase during the nine month period of fiscal 2024 was also attributable to prior year non-cash charges for the impairment of operating lease right-of-use assets and property and equipment related to certain real estate properties ($19.0 million) (see Note 1 to the condensed consolidated financial statements) and prior year non-cash charges related to information technology assets ($6.1 million). The increase during the nine month period of fiscal 2024 was partially offset by prior year non-cash income related to the reduction of contingent consideration liabilities related to acquisition earn outs, net of expense ($72.3 million) (see Note 14 to the condensed consolidated financial statements) and a prior year gain relating to the recovery of our investment (possessory interest) at one of the National Park sites ($19.8 million).

Previous wording

FSS International segment revenue increased by approximately 7.8% and 13.8% during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during both the three and six month periods of fiscal 2024 was primarily attributable to base business growth, including volume growth and contract price increases, and net new business growth partially offset by the negative impact of foreign currency translation (7.8% and 4.2% for the three and six month periods, respectively).

Current wording

FSS International segment revenue increased by approximately 6.0% and 11.0% during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during both the three and nine month periods of fiscal 2024 was primarily attributable to base business growth, including volume growth and contract price increases, and net new business growth partially offset by the negative impact of foreign currency translation (10.0% and 6.3%, respectively).

Previous wording

Operating income increased by $35.6 million and $55.1 million during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during the three and six month periods of fiscal 2024 was mainly attributable to the volume growth in base business, net new business, prior year severance charges ($25.8 million for the three and six month periods) (see Note 3 to condensed consolidated financial statements) and improved supply chain economics partially offset by a decline in profit related to the sale of our ownership interest in AIM Services Co., Ltd. The increase during the six month period of fiscal 2024 was also attributable to prior year non-cash charges for the impairment of certain assets related to a business held-for-sale ($5.2 million).

Current wording

Operating income increased by $12.7 million and $67.8 million during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during the three and nine month periods of fiscal 2024 was mainly attributable to the volume growth in base business, net new business and improved supply chain economics. The increase during the nine month period of fiscal 2024 was also attributable to prior year severance charges ($25.8 million) (see Note 3 to condensed consolidated financial statements) and a prior year non-cash charge for the impairment of certain assets related to a business held-for-sale ($5.2 million), partially offset by a decline in profit related to the sale of our 50% ownership interest in AIM Services Co., Ltd.

Previous wording

Corporate expenses, those administrative expenses not allocated to the business segments, decreased by $4.9 million and increased $15.5 million during the three and six month periods of fiscal 2024 compared to the prior year periods, respectively. The decrease during the three month period ended March 29, 2024 was attributable to lower share-based compensation expense compared to the prior year period ($2.8 million) (see Note 10 to the condensed consolidated financial statements) and lower expenses related to the separation and distribution of the Uniform segment ($1.9 million) (see Note 2 to the condensed consolidated financial statements). The increase during the six month period of fiscal 2024 was attributable to higher expenses related to the separation and distribution of the Uniform segment ($25.6 million) (see Note 2 to the condensed consolidated financial statements) that more than offset lower share-based compensation expense ($9.7 million) compared to the prior year period (see Note 10 to the condensed consolidated financial statements).

Current wording

Corporate expenses, which consists of administrative expenses not allocated to the business segments, increased by $0.2 million and $15.7 million during the three and nine month periods of fiscal 2024 compared to the prior year periods, respectively. The increase during the three month period of fiscal 2024 was attributable to higher employee incentive expenses, essentially offset by lower expense related to the separation and distribution of the Uniform segment ($3.5 million) compared to the prior year period. The increase during the nine month period of fiscal 2024 was attributable to higher expenses related to the separation and distribution of the Uniform segment ($22.1 million) (see Note 2 to the condensed consolidated financial statements) and higher employee incentive expenses, partially offset by lower share-based compensation expense ($10.0 million) compared to the prior year period (see Note 10 to the condensed consolidated financial statements).

Previous wording

As of March 29, 2024, we had $356.6 million of cash and cash equivalents, $112.8 million of marketable securities and approximately $771.2 million of availability under our senior secured revolving credit facility. A significant portion of our cash and cash equivalents are held in mature, liquid geographies where we have operations. As of March 29, 2024, we had approximately $757.5 million of outstanding foreign currency borrowings.

Current wording

As of June 28, 2024, we had $436.1 million of cash and cash equivalents, $114.3 million of marketable securities and approximately $702.2 million of availability under our senior secured revolving credit facility. A significant portion of our cash and cash equivalents are held in mature, liquid geographies where we have operations. As of June 28, 2024, we had approximately $739.4 million of outstanding foreign currency borrowings. As of June 28, 2024, the 5.000% Senior Notes due April 1, 2025 and 3.125% Senior Notes due April 1, 2025 mature within one year. We intend to repay, redeem or otherwise refinance the outstanding obligations related to these securities.

Previous wording

Cash used in operating activities increased by $73.4 million during the six month period of fiscal 2024 compared to the six month period of fiscal 2023. The change was driven by higher use of cash from the change in operating assets and liabilities that more than offset non-cash gains and losses and adjustments to non-operating cash transactions. The $158.9 million change in operating assets and liabilities compared to the prior year period was primarily due to:

Current wording

Cash used in operating activities decreased by $119.9 million during the nine month period of fiscal 2024 compared to the nine month period of fiscal 2023. The lower net income and a greater use of cash from the change in operating assets and liabilities for the nine month period of fiscal 2024 was more than offset by the add-back of non-cash gains and losses and adjustments to non-operating cash transactions as compared to the prior year period. The unfavorable change in operating assets and liabilities compared to the prior year period of $66.0 million was primarily due to:

Previous wording

•Accrued expenses by $96.3 million, resulting in a higher use of cash during the six month period of fiscal 2024 compared to the six month period of fiscal 2023 primarily due to the timing of interest payments, higher recognition of deferred income in our Higher Education business, higher income tax payments and timing of other payments; partially offset by the prior year payment of social security taxes deferred under the CARES Act and lower employee incentive payments.

Current wording

•Accrued expenses by $106.8 million, resulting in a greater use of cash during the nine month period of fiscal 2024 compared to the nine month period of fiscal 2023 primarily due to the timing of income tax payments, higher recognition of deferred income in our Higher Education business, the timing of payroll, higher client payments related to our revenue contracts in our Sports business and the timing of interest, insurance and other payments; partially offset by the prior year payment of social security taxes deferred under the CARES Act and lower employee incentive payments; and

Previous wording

•Receivables by $129.7 million, resulting in a higher use of cash during the six month period of fiscal 2024 compared to the six month period of fiscal 2023 impacted by base and new business growth and timing of collections; and

Current wording

•Receivables by $57.8 million, resulting in a greater use of cash during the nine month period of fiscal 2024 compared to the nine month period of fiscal 2023 impacted by base and new business growth and timing of collections.

Previous wording

•Accounts payable by $40.3 million, resulting in a lower use of cash during the six month period of fiscal 2024 compared to the six month period of fiscal 2023 from the timing of disbursements; and

Current wording

•Accounts payable by $50.6 million, resulting in a lower use of cash during the nine month period of fiscal 2024 compared to the nine month period of fiscal 2023 from the timing of disbursements; and

Previous wording

•Inventories by $27.8 million, resulting in a source of cash during the six month period of fiscal 2024 compared to a use of cash during the six month period of fiscal 2023 due to improved inventory management in the Sports, Leisure & Corrections sector.

Current wording

•Inventories by $35.1 million, resulting in a source of cash during the nine month period of fiscal 2024 compared to a use of cash during the nine month period of fiscal 2023 due to improved inventory management in the Sports, Leisure & Corrections sector.

Previous wording

During the six month periods of fiscal 2024 and 2023, we received proceeds of approximately $1.0 million and $15.3 million, respectively, related to favorable loss experience in older insurance years under our general liability, automobile liability and workers' compensation liability programs. The "Other operating activities" caption in both periods reflect adjustments to net income in the current year and prior year periods related to non-cash gains and losses and adjustments to non-operating cash transactions.

Current wording

During the nine month periods of fiscal 2024 and 2023, we received proceeds of approximately $1.0 million and $15.3 million, respectively, related to favorable loss experience in older insurance years under our general liability, automobile liability and workers' compensation liability programs. The "Other operating activities" caption in both periods reflect adjustments to net income in the current year and prior year periods related to non-cash gains and losses and adjustments to non-operating cash transactions.

Previous wording

Cash flows used in investing activities were $85.7 million higher during the six month period of fiscal 2024 compared to the six month period of fiscal 2023 due to higher acquisitions of certain businesses ($61.5 million) and higher purchases of property and equipment ($32.5 million), offset by lower net purchases of United States Treasury securities related to our captive insurance subsidiary ($31.2 million). The "Other investing activities" caption includes $19.8 million of proceeds received during the six month period of fiscal 2023, relating to the recovery of our investment (possessory interest) at one of the National Park Service sites within our Sports, Leisure & Corrections sector.

Current wording

Cash flows used in investing activities were $379.4 million during the nine month period of fiscal 2024 compared to $323.5 million cash flows provided by investing activities during the nine month period of fiscal 2023. The change was primarily due to the prior year proceeds from the sale of equity investments ($633.2 million) (see Note 1 to the condensed consolidated financial statements). In addition, the nine month period of fiscal 2024 had higher acquisitions of certain businesses ($56.8 million) and higher purchases of property and equipment ($29.6 million), offset by lower net purchases of United States Treasury securities related to our captive insurance subsidiary ($31.2 million) compared to the prior year period.

Previous wording

During the six month period of fiscal 2024, cash used in financing activities was primarily impacted by repayment of the 6.375% 2025 Notes ($1,500.0 million), offset by borrowings under the Receivables Facility ($600.0 million) and borrowings under the revolving credit facility ($179.3 million).

Current wording

During the nine month period of fiscal 2024, cash used in financing activities was primarily impacted by repayment of the 6.375% 2025 Notes ($1,500.0 million), partially offset by borrowings under the Receivables Facility ($599.0 million) and borrowings under the revolving credit facility ($248.0 million).

Previous wording

During the six month period of fiscal 2023, cash provided by financing activities was primarily impacted by borrowings under the Receivables Facility ($395.1 million) and borrowings under the revolving credit facility ($134.8 million).

Current wording

During the nine month period of fiscal 2023, cash provided by financing activities was primarily impacted by the issuance of new U.S. Term B-6 Loans due 2030 ($1,089.0 million), borrowings under the revolving credit facility ($397.2 million) and borrowings under the Receivables Facility ($395.1 million), partially offset by repayments of U.S. Term B-3 Loans due 2025 ($1,664.8 million) and yen denominated term loans due 2026 ($63.0 million).

Previous wording

The "Other financing activities" caption also reflects a use of cash during the six month periods of fiscal 2024 and fiscal 2023 primarily related to taxes paid by us when we withhold shares upon an employee's exercise or vesting of equity awards to cover income taxes. The six month period of fiscal 2024 also includes the payment of a call premium on the 6.375% 2025 Notes ($23.9 million).

Current wording

The "Other financing activities" caption also reflects a use of cash during the nine month periods of fiscal 2024 and fiscal 2023 primarily related to taxes paid by us when we withhold shares upon an employee's exercise or vesting of equity awards to cover income taxes. The nine month period of fiscal 2024 also includes the payment of a call premium on the 6.375% 2025 Notes ($23.9 million) and the nine month period of fiscal 2023 also includes the payment of debt issuance costs on the U.S. Term B-6 Loans due 2030 ($8.0 million).

Previous wording

The following is a reconciliation of net income attributable to ASI stockholders, which is a U.S. GAAP measure of ASI's operating results, to Covenant Adjusted EBITDA as defined in our debt agreements. The terms and related calculations are defined in the Credit Agreement and the indentures governing our senior notes. Covenant Adjusted EBITDA is a measure of ASI and its restricted subsidiaries only and does not include the results of Aramark.

Current wording

The following is a reconciliation of net income attributable to ASI stockholders, which is a U.S. GAAP measure of ASI's operating results, to Covenant Adjusted EBITDA as defined in our debt agreements. The terms and related calculations are defined in the Credit Agreement and the indentures governing our senior notes. Covenant Adjusted EBITDA is a measure of

Previous wording

(2) Represents the fiscal 2024 non-cash charge for the impairment of certain assets related to a business held-for-sale ($2.3 million), the fiscal 2023 gain from the sale of our equity method investment in AIM Services, Co., Ltd. ($377.1 million) and the fiscal 2023 loss from the sale of a portion of our equity investment in the San Antonio Spurs NBA franchise ($1.1 million).

Current wording

(2) Represents the fiscal 2024 non-cash charge for the impairment of certain assets related to a business that was sold ($2.3 million).

Previous wording

(4) "Other" includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($51.8 million), charges related to our spin-off of the Uniform segment ($45.5 million), income related to non-United States governmental wage subsidies ($13.6 million), the impact of hyperinflation in Argentina ($11.4 million), the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($11.3 million), net severance charges ($10.1 million), non-cash charges for inventory write-downs ($6.1 million), labor charges and other expenses associated with closed or partially closed locations from adverse weather ($5.4 million), non-cash charges related to information technology assets ($2.1 million), multiemployer pension plan withdrawal charges ($2.0 million) and other miscellaneous expenses.

Current wording

(4) "Other" includes adjustments to remove the impact attributable to the adoption of certain accounting standards that are made to the calculation in accordance with the Credit Agreement and indentures ($51.8 million), charges related to our spin-off of the Uniform segment ($42.0 million), income related to non-United States governmental wage subsidies ($13.6 million), the reversal of contingent consideration liabilities related to acquisition earn outs, net of expense ($12.8 million), net severance charges ($10.1 million), the impact of hyperinflation in Argentina ($8.9 million), non-cash charges for inventory write-downs ($6.1 million), non-cash charges related to the impairment of a trade name ($3.3 million), non-cash charges related to information technology assets ($2.1 million), multiemployer pension plan withdrawal charges ($2.0 million) and other miscellaneous expenses.

Previous wording

Our business activities do not include the use of unconsolidated special purpose entities and there are no significant business transactions that have not been reflected in the accompanying condensed consolidated financial statements. We insure portions of our risk in general liability, automobile liability, workers’ compensation liability claims as well as certain property damage risks through a wholly owned captive insurance subsidiary (the "Captive") as part of our approach to risk finance. The Captive is subject to the regulations within its domicile of Bermuda, including regulations established by the Bermuda Monetary Authority (the "BMA") relating to levels of liquidity and solvency as such concepts are defined by the BMA. The Captive was in compliance with these regulations as of March 29, 2024. These regulations may have the effect of limiting our ability to access certain cash and cash equivalents held by the Captive for uses other than for the payment of our general liability, automobile liability, workers’ compensation liability, certain property damage and related Captive costs. As of March 29, 2024 and September 29, 2023, cash and cash equivalents at the Captive were $13.2 million and $32.8 million, respectively. The Captive also invests in United States Treasury securities where the amount as of March 29, 2024 and September 29, 2023 was $112.8 million and $110.7 million, respectively, and is recorded in "Prepayments and other current assets" on the Condensed Consolidated Balance Sheets.

Current wording

Our business activities do not include the use of unconsolidated special purpose entities and there are no significant business transactions that have not been reflected in the accompanying condensed consolidated financial statements. We insure portions of our risk in general liability, automobile liability, workers’ compensation liability claims as well as certain property damage risks through a wholly owned captive insurance subsidiary (the "Captive") as part of our approach to risk finance. The Captive is subject to the regulations within its domicile of Bermuda, including regulations established by the Bermuda Monetary Authority (the "BMA") relating to levels of liquidity and solvency as such concepts are defined by the BMA. The Captive was in compliance with these regulations as of June 28, 2024. These regulations may have the effect of limiting our ability to access certain cash and cash equivalents held by the Captive for uses other than for the payment of our general liability, automobile liability, workers’ compensation liability, certain property damage and related Captive costs. As of June 28, 2024 and September 29, 2023, cash and cash equivalents at the Captive were $15.7 million and $32.8 million, respectively. The Captive also invests in United States Treasury securities where the amount as of June 28, 2024 and September 29, 2023 was $114.3 million and $110.7 million, respectively, and is recorded in "Prepayments and other current assets" on the Condensed Consolidated Balance Sheets.