Aramark
For the period ended Mar 28, 2025. Filed May 6, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 28, 2025 · Filed May 6, 2025
ARMK$52.54+4.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-27; filed 2025-02-04.
0001584509-25-000053
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-28; filed 2025-05-06.
0001584509-25-000118
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 85 previous paragraphs and 93 current paragraphs.
50 unchanged; 28 reworded; 13 added; 6 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 8 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Revenue increased by approximately 1.9% and 2.6% during the three and six month periods of fiscal 2025 compared to the prior year periods, respectively. The increase was primarily attributable to base business growth, partially offset by the negative impact of foreign currency translation (1.2% and 1.3% for the three and six month periods, respectively) as well as the exit of some lower margin accounts occurring later in fiscal 2024 and fewer operating days due to weather-related closures within the FSS United States segment. Additionally, for the three month period of fiscal 2025, the FSS United States segment revenue was impacted by fewer operating days due to a calendar shift at several universities.
Current report
Interest Expense, net, increased by 3.9% during the three month period of fiscal 2025 compared to the prior year period due to the payment of $5.8 million of transaction costs related to the refinancing of United States dollar denominated Term B-8 Loans due 2030 (“U.S. Term B-8 Loans due 2030”) and a $2.5 million non-cash loss for the write-off of unamortized deferred financing costs and discount on the United States dollar denominated Term B-4 Loans due 2027 ("U.S. Term B-4 Loans due 2027") and 5.000% Senior Notes due April 2025 Notes (the "5.000% 2025 Notes"), partially offset by lower borrowings under the revolving credit facility.
Current report
FSS United States segment revenue increased by approximately 0.4% and 1.6% during the three and six month periods of fiscal 2025 compared to the prior year periods, respectively, primarily attributable to base business growth. Specifically, for both the three and six month periods: the Business & Industry sector increase was due to volume growth in base business and net new business; the Sports, Leisure and Corrections sector increase was driven by higher net new business within the Corrections business; the Facilities & Other sector decrease resulted from the exit of some lower margin accounts in late fiscal 2024, partially offset by increased revenues from procurement services; and various sectors were negatively impacted by fewer operating days due to weather-related closures. Additionally, for the three month period of fiscal 2025, the Education sector revenue was impacted by fewer operating days due to a calendar shift.
Current report
Operating income increased by $7.4 million and $26.3 million during the three and six month periods of fiscal 2025 compared to the prior year periods, respectively. The increase during both the three and six month periods of fiscal 2025 was primarily attributable to base business growth and supply chain efficiencies. The increase during the three month period of fiscal 2025 was partially offset by fewer operating days due to a calendar shift in the Education sector. The increase during the six month period of fiscal 2025 was partially offset by higher contingent consideration expenses as compared to the prior year period ($10.6 million).
Current report
On March 19, 2025, we issued €400.0 million of euro denominated 4.375% Senior Notes due April 2033 (the "4.375% 2033 Notes"). We used a portion of the net proceeds from the issuance and sale of the 4.375% 2033 Notes to repay at maturity, April 1, 2025, all of the €325.0 million outstanding aggregate principal amount of euro denominated 3.125% Senior Notes due April 2025 (the "3.125% 2025 Notes") and the remainder for general corporate purposes, including reduction of debt (see Note 3 to the condensed consolidated financial statements).
Current report
We entered into a credit agreement on March 28, 2017 (as subsequently amended the "Credit Agreement"). On February 18, 2025, we entered into an incremental amendment to the Credit Agreement (“Incremental Amendment No. 17”) to provide for, among other things, the establishment of new term loans comprised of new United States dollar denominated Term B-8 Loans ("New U.S. Term B-8 Loans due 2030") in an amount equal to $1,395.0 million, in the form of a fungible upsize to the existing U.S. Term B-8 Loans due 2030. The New U.S. Term B-8 Loans due 2030 were funded in full on the closing date of Incremental Amendment No. 17 and were applied to: (a) repay in full $839.3 million of the U.S. Term B-4 Loans due 2027 previously outstanding under the Credit Agreement; (b) to redeem the entire $551.5 million aggregate principal amount outstanding of the 5.000% 2025 Notes; and (c) to pay fees, premiums, expenses and other transaction costs in connection with the foregoing (see Note 3 to the condensed consolidated financial statements).
Current report
•Receivables by $110.3 million, resulting in a lower use of cash due to the timing of collections; and
Current report
•Prepayments by $23.1 million, resulting in a higher use of cash due to the timing of insurance and other annual contractual payments compared to the prior period.
Current report
•the upsizing of the U.S. Term B-8 Loans due 2030 ($1,395.0 million);
Current report
•borrowings under the Receivables Facility ($586.0 million);
Current report
•the issuance of the 4.375% 2033 Notes ($429.7 million); and
Current report
•borrowings under the revolving credit facility ($275.9 million).
Current report
These sources of cash were partially offset by repayment of the U.S. Term B-4 Loans due 2027 ($839.3 million), redemption of the 5.000% 2025 Notes ($551.5 million) and the repurchase of common stock through the share repurchase program ($109.3 million).
Removed paragraphs (6)
Previous report
*** Not meaningful
Previous report
Revenue increased by approximately 3.3% during the three month period of fiscal 2025 compared to the prior year period. The increase during this period was primarily attributable to base business growth, including volume growth and contract price increases, partially offset by the negative impact of foreign currency translation (1.4%).
Previous report
FSS United States segment revenue increased by approximately 2.7% during the three month period of fiscal 2025 compared to the prior year period. The increase was primarily attributable to base business growth, including volume growth and contract price increases. The Business & Industry increase was primarily due to net new business and higher volumes in base business. The Facilities & Other decrease was due to the exit of some lower margin accounts occurring later in fiscal 2024.
Previous report
Operating income increased by $7.4 million during the three month period of fiscal 2025 compared to the prior year period. The increase was mainly attributable to the volume growth in base business, net new business, cost management, improved supply chain economics and lower currency translation losses from Argentina hyperinflation ($3.2 million) (see Note 1 to the condensed consolidated financial statements).
Previous report
On January 17, 2025, we issued a notice of conditional redemption for the 5.000% Senior Notes due April 2025 (the “5.000% 2025 Notes”). We notified holders of our election to redeem the entire $551.5 million aggregate principal amount of the 5.000% 2025 Notes on February 18, 2025, at a redemption price equal to 100.000% of the aggregate principal amount, plus accrued and unpaid interest up to the redemption date. In connection with the redemption, we have completed a syndication process for new United States dollar denominated term loans due June 2030 in an aggregate principal amount of up to $1,395.0 million (the “New United States Term B-8 Loans”), which shall be in the form of a fungible upsize to our existing United States Term B-8 Loans due 2030. We anticipate that the New United States Term B-8 Loans will be incurred on February 18, 2025 concurrent with the redemption of the 5.000% 2025 Notes, with the remaining proceeds following the redemption to be used to refinance existing term loans and pay related fees and expenses.
Previous report
•Receivables by $49.5 million, resulting in a lower use of cash due to the timing of collections.
Reworded paragraphs (28)
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 months ended December 27, 2024 and December 29, 2023 should be read in conjunction with our audited consolidated financial statements and the notes to those statements for the fiscal year ended September 27, 2024 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on November 19, 2024.
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 six months ended March 28, 2025 and March 29, 2024 should be read in conjunction with our audited consolidated financial statements and the notes to those statements for the fiscal year ended September 27, 2024 included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on November 19, 2024.
Previous wording
We are a leading global provider of food and facilities services to education, healthcare, business & industry and sports, leisure & corrections clients. Our largest market is the United States, which is supplemented by an additional 15-country footprint. We also provide our services on a more limited basis in several additional countries and in offshore locations. Through our established brand, broad geographic presence and employees, we anchor our business in our partnerships with thousands of clients. Through these partnerships, we serve millions of consumers including students, patients, employees, sports fans and guests worldwide. We operate our business in two geographic reportable segments: Food and Support Services United States ("FSS United States") and Food and Support Services International ("FSS International").
Current wording
We are a leading global provider of food and facilities services to education, healthcare, business & industry and sports, leisure & corrections clients. Our largest market is the United States, which is supplemented by an additional 15-country footprint. We also provide our services on a more limited basis in several additional countries and in offshore locations. Through our established brand, broad geographic presence and employees, we anchor our business in our partnerships with thousands of clients. Through these partnerships, we serve millions of consumers including students, patients, employees, sports fans and guests worldwide. We operate our business in two reportable segments: Food and Support Services United States ("FSS United States") and Food and Support Services International ("FSS International").
Previous wording
We continue to see improving macroeconomic trends where global inflationary costs in product, energy and labor have moderated. In addition, we continue to see elevated market interest rates and volatility 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
Recent developments regarding tariffs and global trade have resulted in increased volatility and uncertainty for macroeconomic conditions. For the first half of the fiscal year, we saw global inflationary costs in product, energy and labor and market interest rates moderating and experienced volatility in foreign currencies. Given the uncertainty of tariff policy and the resulting impact on current and future macroeconomic conditions, we may see continued volatility in foreign currencies as well as fluctuating trends in global inflationary costs and market interest rates in the near term. We regularly evaluate and believe we take appropriate actions when necessary to mitigate the 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 months ended December 27, 2024 and December 29, 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 six months ended March 28, 2025 and March 29, 2024 (in millions).
Previous wording
(1) As a percentage of total revenue, FSS United States represented 72.5% and 72.9% and FSS International represented 27.5% and 27.1% for the three months ended December 27, 2024 and December 29, 2023, respectively.
Current wording
(1) As a percentage of total revenue, FSS United States represented 71.4% and 72.5% and FSS International represented 28.6% and 27.5% for the three months ended March 28, 2025 and March 29, 2024, 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 months ended December 27, 2024 and December 29, 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 six months ended March 28, 2025 and March 29, 2024 (in millions).
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 months ended December 27, 2024 and December 29, 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 six months ended March 28, 2025 and March 29, 2024.
Previous wording
Operating income increased by $50.3 million during the three month period of fiscal 2025 compared to the prior year period driven by base business volume growth, cost management and improved supply chain economics. The increase in operating income was also attributable to prior year expenses related to the separation and distribution of the Uniform segment ($29.0 million), which was partially offset by higher contingent consideration expenses as compared to the prior year period ($10.6 million).
Current wording
Operating income increased by $15.1 million and $65.4 million during the three and six month periods of fiscal 2025 compared to the prior year periods, respectively, driven by base business growth, cost management and supply chain efficiencies. The increase during the three month period of fiscal 2025 was partially offset by fewer operating days due to a calendar shift at several universities within the FSS United States segment. The increase in operating income during the six month period of fiscal 2025 was also attributable to prior year expenses related to the separation and distribution of the Uniform segment ($29.0 million), which was partially offset by higher contingent consideration expenses as compared to the prior year period ($10.6 million).
Previous wording
Interest Expense, net, decreased by 33.8% during the three month period of fiscal 2025 compared to the prior year period. The decrease was primarily due to the prior year payment of a $23.9 million call premium, a prior year $7.9 million non-cash loss for the write-off of unamortized deferred financing costs related to the repayment of the 6.375% Senior Notes due May 1, 2025 (the "6.375% 2025 Notes") and lower Receivables Facility borrowings.
Current wording
Interest Expense, net, decreased by 17.6% during the six month period of fiscal 2025 compared to the prior year period due to the prior year payment of a $23.9 million call premium, a prior year $7.9 million non-cash loss for the write-off of unamortized deferred financing costs related to the repayment of the 6.375% Senior Notes due May 2025 (the "6.375% 2025 Notes"), a prior year $1.6 million write-off of unamortized deferred financing costs and discount on the United States dollar denominated Term B-5 Loans due 2028 and United States dollar denominated Term B-6 Loans due 2030, transaction costs related to the repricing of these loans and lower borrowings under the Receivables Facility and revolving credit facility.
Previous wording
The Provision for Income Taxes for the three month periods of fiscal 2025 and fiscal 2024 were recorded at an effective tax rate of 25.3% and 45.6%, respectively. During the three month period of fiscal 2024, we recorded a $7.1 million valuation allowance adjustment 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 6 to the condensed consolidated financial statements).
Current wording
The Provision for Income Taxes for the three and six month periods of fiscal 2025 was recorded at an effective tax rate of 26.6% and 25.8%, respectively. 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 of fiscal 2024, we recorded a $7.1 million valuation allowance adjustment 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 6 to the condensed consolidated financial statements).
Previous wording
FSS International segment revenue increased by approximately 4.7% during the three month period of fiscal 2025 compared to the prior year period. The increase 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 (5.1%).
Current wording
FSS International segment revenue increased by approximately 5.8% and 5.2% during the three and six month periods of fiscal 2025 compared to the prior year periods, respectively. The increase was primarily attributable to base business and net new business growth, partially offset by the negative impact of foreign currency translation (4.2% and 4.6% for the three and six month periods, respectively).
Previous wording
Operating income increased by $18.9 million during the three month period of fiscal 2025 compared to the prior year period. The increase was primarily attributable to base business volume growth, cost management, and improved supply chain economics, which was partially offset by higher contingent consideration expenses as compared to the prior year period ($10.6 million).
Current wording
Operating income increased by $9.0 million and $16.4 million during the three and six month periods of fiscal 2025 compared to the prior year periods, respectively. The increase was primarily attributable to base business growth, cost management and supply chain efficiencies.
Previous wording
Corporate expenses, those administrative expenses not allocated to the business segments, decreased by $24.0 million during the three month period of fiscal 2025 compared to the prior year period. The decrease was mainly attributable to prior year expenses related to the separation and distribution of the Uniform segment ($29.0 million), partially offset by increases in acquisition costs and share-based compensation expense.
Current wording
Corporate expenses, those administrative expenses not allocated to the business segments, increased by $1.3 million and decreased by $22.7 million during the three and six month periods of fiscal 2025 compared to the prior year periods, respectively. The decrease during the six month period of fiscal 2025 was mainly attributable to prior year expenses related to the separation and distribution of the Uniform segment ($29.0 million), partially offset by increases in acquisition costs and share-based compensation expense.
Previous wording
As of December 27, 2024, we had $484.1 million of cash and cash equivalents, $42.8 million of marketable securities, $1,158.1 million of availability under our senior secured revolving credit facility and $75.0 million of availability under our Receivables Facility. A significant portion of our cash and cash equivalents are held in mature, liquid geographies where we have operations. As of December 27, 2024, we had $862.2 million of outstanding foreign currency borrowings.
Current wording
As of March 28, 2025, we had $920.5 million of cash and cash equivalents, $43.3 million of marketable securities, $1,043.4 million of availability under our senior secured revolving credit facility and $14.0 million of availability under our Receivables Facility. A significant portion of our cash and cash equivalents are held in mature, liquid geographies where we have operations. As of March 28, 2025, we had $1,320.8 million of outstanding foreign currency borrowings.
Previous wording
Cash used in operating activities decreased by $69.9 million during the three month period of fiscal 2025 compared to the prior year period. The higher net income and a lower use of cash from the change in operating assets and liabilities more than offset non-cash gains and losses and adjustments to non-operating cash transactions compared to the prior year period. The favorable change in operating assets and liabilities compared to the prior year period of $23.7 million was primarily due to:
Current wording
Cash used in operating activities decreased by $104.6 million during the six month period of fiscal 2025 compared to the prior year period. The decrease was driven by higher net income, lower payments made to clients on contracts and a lower use of cash from the change in operating assets and liabilities compared to the prior year period, partially offset by unfavorable non-cash gains and losses.
Previous wording
•Accrued expenses by $77.0 million, resulting in a lower use of cash primarily due to the timing of interest and income tax payments, lower recognition of deferred income in our Higher Education business, partially offset by higher employee incentive payments, the timing of payroll and higher commission payments mainly in our Sports business; and
Current wording
•Accrued expenses by $34.5 million, resulting in a lower use of cash primarily due to the timing of interest payments and lower recognition of deferred income in our Higher Education business, partially offset by higher employee incentive payments and higher commission payments mainly in our Sports business.
Previous wording
•Accounts payable by $80.7 million, resulting in a higher use of cash due to the timing of disbursements; and
Current wording
•Accounts payable by $83.7 million, resulting in a higher use of cash due to the timing of disbursements;
Previous wording
•Inventories by $19.4 million, resulting in a lower source of cash due to increased purchases from new business.
Current wording
•Inventories by $24.6 million, resulting in a use of cash during the six month period of fiscal 2025 compared to a source of cash in the prior period due to increased purchases from new business; and
Previous wording
Cash flows used in investing activities were $32.9 million higher during the three month period of fiscal 2025 compared to the prior year period primarily due to higher investment in the acquisitions of certain businesses ($28.1 million).
Current wording
Cash flows used in investing activities were $192.6 million higher during the six month period of fiscal 2025 compared to the prior year period primarily due to higher acquisitions of certain businesses ($155.1 million) and higher purchases of property and equipment ($32.6 million).
Previous wording
During the three month period of fiscal 2025, cash provided by financing activities was primarily impacted by borrowings under the Receivables Facility ($525.0 million) and borrowings under the revolving credit facility ($178.4 million).
Current wording
During the six month period of fiscal 2025, cash provided by financing activities was primarily impacted by the following:
Previous wording
During the three 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), which was offset by borrowings under the Receivables Facility ($600.0 million) and borrowings under the revolving credit facility ($209.7 million).
Current 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).
Previous wording
The "Other financing activities" caption also reflects a use of cash during the three month periods of fiscal 2025 and fiscal 2024 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 three 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 six month periods of fiscal 2025 and fiscal 2024 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 2025 includes the payment of transactions costs related to the issuance of the 4.375% 2033 Notes and the U.S. Term B-8 Loans due 2030 ($15.1 million). The six month period of fiscal 2024 includes the payment of a call premium on the 6.375% 2025 Notes ($23.9 million).
Previous wording
These financial ratios, tests and covenants involve the calculation of certain measures that we refer to in this discussion as "Covenant Adjusted EBITDA." Covenant Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States ("U.S. GAAP"). Covenant Adjusted EBITDA is defined as net income of
Current wording
These financial ratios, tests and covenants involve the calculation of certain measures that we refer to in this discussion as "Covenant Adjusted EBITDA." Covenant Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States ("U.S. GAAP"). Covenant Adjusted EBITDA is defined as net income of Aramark Services, Inc. ("ASI") and its restricted subsidiaries plus interest expense, net, provision for income taxes and depreciation and amortization, further adjusted to give effect to adjustments required in calculating covenant ratios and compliance under our Credit Agreement and the indentures governing our senior notes.
Previous wording
(1) Represents share-based compensation expense resulting from the application of accounting for stock options, stock appreciation rights, restricted stock units, performance stock units and deferred stock unit awards.
Current wording
(1) Represents non-cash share-based compensation expense resulting from the application of accounting for stock options, stock appreciation rights, restricted stock units, performance stock units and deferred stock unit awards.
Previous wording
(2) Represents the fiscal 2024 gain from the sale of our remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million) and the fiscal 2024 non-cash charge for the impairment of certain assets related to a business that was sold ($2.3 million).
Current wording
(2) Represents the fiscal 2024 gain from the sale of our remaining equity investment in the San Antonio Spurs NBA franchise ($25.1 million).
Previous wording
(3) Represents the annualizing of net EBITDA from certain acquisitions and divestitures made during the period.
Current wording
(3) Represents the annualizing of net EBITDA from certain acquisitions made during the period.
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 ($52.3 million), non-cash adjustments to inventory based on expected usage ($18.2 million), charges related to a ruling on a foreign tax matter ($6.8 million), severance charges ($6.7 million), non-cash charges related to the impairment of a trade name ($3.3 million), contingent consideration expense related to acquisition earn outs, net of reversals ($2.4 million), the impact of hyperinflation in Argentina ($2.2 million), income related to non-United States governmental wage subsidies ($1.1 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 ($52.8 million), non-cash adjustments to inventory based on expected usage ($18.2 million), charges related to a ruling on a foreign tax matter ($6.8 million), severance charges ($6.7 million), non-cash charges related to the impairment of a trade name ($3.3 million), contingent consideration expense related to acquisition earn outs, net of reversals ($2.4 million), the impact of hyperinflation in Argentina ($1.9 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 related to 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 December 27, 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 December 27, 2024 and September 27, 2024, cash and cash equivalents at the Captive were $98.7 million and $94.7 million, respectively. The Captive also invests in United States Treasury securities where the amount as of December 27, 2024 and September 27, 2024 was $42.8 million and $42.3 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 related to 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 28, 2025. 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 28, 2025 and September 27, 2024, cash and cash equivalents at the Captive were $95.2 million and $94.7 million, respectively. The Captive also invests in United States Treasury securities where the amount as of March 28, 2025 and September 27, 2024 was $43.3 million and $42.3 million, respectively, and is recorded in "Prepayments and other current assets" on the Condensed Consolidated Balance Sheets.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
(1) As a percentage of total revenue, FSS United States represented 72.0% and 72.7% and FSS International represented 28.0% and 27.3% for the six months ended March 28, 2025 and March 29, 2024, respectively.
Current report — wording carried from elsewhere
The favorable change in operating assets and liabilities compared to the prior year period of $13.5 million was primarily due to:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Aramark Services, Inc. ("ASI") and its restricted subsidiaries plus interest expense, net, provision for income taxes and depreciation and amortization, further adjusted to give effect to adjustments required in calculating covenant ratios and compliance under our Credit Agreement and the indentures governing our senior notes.