Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Aug. 27, 2016 | Oct. 14, 2016 | Feb. 26, 2016 | |
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 4,845,519 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 15,424,127 | ||
Entity Registrant Name | Unifirst Corp | ||
Entity Central Index Key | 717,954 | ||
Trading Symbol | unf | ||
Current Fiscal Year End Date | --08-27 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1,581,777,889 | ||
Document Type | 10-K | ||
Document Period End Date | Aug. 27, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands | 12 Months Ended | |||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | ||
Common Class A [Member] | ||||
Income per share – Basic: | ||||
Income per share – Basic (in dollars per share) | $ 6.51 | $ 6.50 | $ 6.29 | |
Income per share – Diluted: | ||||
Income per share – Diluted (in dollars per share) | $ 6.17 | $ 6.15 | $ 5.95 | |
Income allocated to – Basic: | ||||
Income allocated to – Basic | $ 99,282,000 | $ 98,665,000 | $ 94,849,000 | |
Income allocated to – Diluted: | ||||
Income allocated to – Diluted | $ 124,409,000 | $ 123,472,000 | $ 118,626,000 | |
Weighted average number of shares outstanding – Basic: | ||||
Weighted average number of shares outstanding – Basic (in shares) | 15,245 | 15,182 | 15,080 | |
Weighted average number of shares outstanding – Diluted: | ||||
Weighted average number of shares outstanding – Diluted (in shares) | 20,154 | 20,079 | 19,939 | |
Dividends per share: | ||||
Dividends per share (in dollars per share) | $ 0.15 | $ 0.15 | $ 0.15 | |
Common Class B [Member] | ||||
Income per share – Basic: | ||||
Income per share – Basic (in dollars per share) | $ 5.21 | $ 5.20 | $ 5.03 | |
Income allocated to – Basic: | ||||
Income allocated to – Basic | $ 25,093,000 | $ 24,761,000 | $ 23,705,000 | |
Weighted average number of shares outstanding – Basic: | ||||
Weighted average number of shares outstanding – Basic (in shares) | 4,816 | 4,763 | 4,711 | |
Dividends per share: | ||||
Dividends per share (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | |
Revenues | $ 1,468,046,000 | $ 1,456,605,000 | $ 1,394,897,000 | |
Cost of revenues | [1] | 900,427,000 | 884,664,000 | 858,306,000 |
Selling and administrative expenses | [1] | 284,847,000 | 294,444,000 | 271,564,000 |
Depreciation and amortization | 81,612,000 | 77,113,000 | 71,752,000 | |
Total operating expenses | 1,266,886,000 | 1,256,221,000 | 1,201,622,000 | |
Income from operations | 201,160,000 | 200,384,000 | 193,275,000 | |
Interest expense | 927,000 | 873,000 | 772,000 | |
Interest income | (3,470,000) | (3,310,000) | (3,131,000) | |
Foreign exchange loss | 332,000 | 1,553,000 | 283,000 | |
Total other (income) expense | (2,211,000) | (884,000) | (2,076,000) | |
Income before income taxes | 203,371,000 | 201,268,000 | 195,351,000 | |
Provision for income taxes | 78,345,000 | 76,969,000 | 75,426,000 | |
Net income | $ 125,026,000 | $ 124,299,000 | $ 119,925,000 | |
Income per share – Diluted (in dollars per share) | $ 6.17 | $ 6.15 | $ 5.95 | |
Income allocated to – Diluted | $ 124,409,000 | $ 123,472,000 | $ 118,626,000 | |
Weighted average number of shares outstanding – Diluted (in shares) | 20,154 | 20,079 | 19,939 | |
[1] | Exclusive of depreciation on the Company's property, plant and equipment and amortization of its intangible assets. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | ||
Net income | $ 125,026,000 | $ 124,299,000 | $ 119,925,000 | |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (391,000) | (23,134,000) | (2,852,000) | |
Pension benefit liabilities, net of income taxes | [1] | (3,532,000) | 525,000 | (1,126,000) |
Change in fair value of derivatives, net of income taxes | (398,000) | 708,000 | ||
Derivative financial instruments (gain) loss reclassified | (215,000) | 21,000 | ||
Other comprehensive (loss) income | (4,536,000) | (21,880,000) | (3,978,000) | |
Comprehensive income | $ 120,490,000 | $ 102,419,000 | $ 115,947,000 | |
[1] | These amounts are shown net of the effect of income taxes. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Aug. 27, 2016 | [1] | Aug. 29, 2015 |
Common Class A [Member] | |||
Shareholders’ equity: | |||
Common stock, value | $ 1,542,000 | $ 1,525,000 | |
Common Class B [Member] | |||
Shareholders’ equity: | |||
Common stock, value | 485,000 | 485,000 | |
Cash and cash equivalents | 363,795,000 | 276,553,000 | |
Receivables, less reserves of $7,675,000 and $6,007,000 respectively | 156,578,000 | 151,851,000 | |
Inventories | 78,887,000 | 80,449,000 | |
Rental merchandise in service | 138,105,000 | 140,384,000 | |
Prepaid and deferred income taxes | 10,418,000 | 204,000 | |
Prepaid expenses and other current assets | 29,831,000 | 12,382,000 | |
Total current assets | 777,614,000 | 661,823,000 | |
Property, plant and equipment, net | 539,818,000 | 513,853,000 | |
Goodwill | 320,641,000 | 313,133,000 | |
Customer contracts, net | 35,854,000 | 38,024,000 | |
Other intangible assets, net | 2,810,000 | 2,025,000 | |
Deferred income taxes | 97,000 | 1,475,000 | |
Other assets | 25,173,000 | 2,904,000 | |
Total assets | 1,702,007,000 | 1,533,237,000 | |
Loans payable | 0 | 1,385,000 | |
Accounts payable | 50,884,000 | 50,826,000 | |
Accrued liabilities | 100,782,000 | 113,022,000 | |
Accrued and deferred income taxes | 969,000 | 18,878,000 | |
Total current liabilities | 152,635,000 | 184,111,000 | |
Accrued liabilities | 104,921,000 | 54,566,000 | |
Accrued and deferred income taxes | 79,670,000 | 52,352,000 | |
Total liabilities | 337,226,000 | 291,029,000 | |
Preferred Stock, $1.00 par value; 2,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | |
Capital surplus | 72,561,000 | 67,611,000 | |
Retained earnings | 1,319,142,000 | 1,197,000,000 | |
Accumulated other comprehensive (loss) income | (28,949,000) | (24,413,000) | |
Total shareholders’ equity | 1,364,781,000 | 1,242,208,000 | |
Total liabilities and shareholders’ equity | $ 1,702,007,000 | $ 1,533,237,000 | |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Aug. 27, 2016 | [1] | Aug. 29, 2015 |
Common Class A [Member] | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | |
Common stock, shares issued (in shares) | 15,415,125 | 15,246,588 | |
Common stock, shares outstanding (in shares) | 15,415,125 | 15,246,588 | |
Common Class B [Member] | |||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Common stock, shares issued (in shares) | 4,849,519 | 4,854,519 | |
Common stock, shares outstanding (in shares) | 4,849,519 | 4,854,519 | |
Receivables, reserves | $ 7,675,000 | $ 6,007,000 | |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 | |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | ||
Balance (in shares) at Aug. 31, 2013 | 15,130 | 4,872 | ||||||
Balance at Aug. 31, 2013 | $ 1,513,000 | $ 487,000 | $ 51,445,000 | $ 958,508,000 | $ 1,445,000 | $ 1,013,398,000 | ||
Net income | 119,925,000 | 119,925,000 | ||||||
Pension benefit liabilities, net | [1] | (1,126,000) | (1,126,000) | |||||
Foreign currency translation | (2,852,000) | (2,852,000) | ||||||
Dividends declared | (2,861,000) | (2,861,000) | ||||||
Shares converted (in shares) | 12 | (12) | ||||||
Shares converted | $ 1,000 | $ (1,000) | ||||||
Share-based compensation, net (in shares) | [2] | (36) | ||||||
Share-based compensation, net | [2] | $ (3,000) | 2,079,000 | 2,076,000 | ||||
Share-based awards exercised, net (in shares) | [1],[3] | 84 | ||||||
Share-based awards exercised, net | [1],[3] | $ 8,000 | 5,891,000 | 5,899,000 | ||||
Balance (in shares) at Aug. 30, 2014 | 15,190 | 4,860 | ||||||
Balance at Aug. 30, 2014 | $ 1,519,000 | $ 486,000 | 59,415,000 | 1,075,572,000 | (2,533,000) | 1,134,459,000 | ||
Net income | 124,299,000 | 124,299,000 | ||||||
Pension benefit liabilities, net | [1] | 525,000 | 525,000 | |||||
Foreign currency translation | (23,134,000) | (23,134,000) | ||||||
Dividends declared | (2,871,000) | (2,871,000) | ||||||
Shares converted (in shares) | 1 | (1) | ||||||
Shares converted | ||||||||
Share-based compensation, net (in shares) | [2] | (36) | (5) | |||||
Share-based compensation, net | [2] | $ (4,000) | $ (1,000) | 406,000 | 401,000 | |||
Share-based awards exercised, net (in shares) | [1],[3] | 91 | ||||||
Share-based awards exercised, net | [1],[3] | $ 10,000 | 7,790,000 | 7,800,000 | ||||
Balance (in shares) at Aug. 29, 2015 | 15,246 | 4,854 | ||||||
Balance at Aug. 29, 2015 | $ 1,525,000 | $ 485,000 | 67,611,000 | 1,197,000,000 | (24,413,000) | 1,242,208,000 | ||
Change in fair value of derivatives | 729,000 | 729,000 | ||||||
Net income | 125,026,000 | 125,026,000 | ||||||
Pension benefit liabilities, net | [1] | (3,532,000) | (3,532,000) | |||||
Foreign currency translation | (391,000) | (391,000) | ||||||
Dividends declared | (2,884,000) | (2,884,000) | ||||||
Share-based compensation, net (in shares) | [2] | 104 | (5) | |||||
Share-based compensation, net | [2] | $ 10,000 | (343,000) | (333,000) | ||||
Share-based awards exercised, net (in shares) | [1],[3] | 65 | ||||||
Share-based awards exercised, net | [1],[3] | $ 7,000 | 5,293,000 | 5,300,000 | ||||
Balance (in shares) at Aug. 27, 2016 | 15,415 | 4,849 | ||||||
Balance at Aug. 27, 2016 | $ 1,542,000 | $ 485,000 | 72,561,000 | 1,319,142,000 | (28,949,000) | 1,364,781,000 | [4] | |
Change in fair value of derivatives | $ (613,000) | $ (613,000) | ||||||
[1] | These amounts are shown net of the effect of income taxes. | |||||||
[2] | These amounts are shown net of any shares withheld by the Company to satisfy certain tax withholdings obligations in connection with the vesting of certain shares of restricted stock. | |||||||
[3] | These amounts include excess tax benefits that the Company realized as part of the exercise of share-based awards. | |||||||
[4] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | ||
Cash flows from operating activities: | ||||
Net income | $ 125,026,000 | $ 124,299,000 | $ 119,925,000 | |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Depreciation | 72,983,000 | 68,164,000 | 62,791,000 | |
Amortization of intangible assets | 8,629,000 | 8,949,000 | 8,961,000 | |
Amortization of deferred financing costs | 184,000 | 209,000 | 209,000 | |
Share-based compensation | 5,628,000 | 5,366,000 | 5,601,000 | |
Accretion on environmental contingencies | 669,000 | 603,000 | 716,000 | |
Accretion on asset retirement obligations | 826,000 | 690,000 | 941,000 | |
Deferred income taxes | 9,899,000 | (3,473,000) | 8,439,000 | |
Changes in assets and liabilities, net of acquisitions: | ||||
Receivables, less reserves | (3,949,000) | (3,494,000) | (11,541,000) | |
Inventories | 1,467,000 | (2,236,000) | (4,450,000) | |
Rental merchandise in service | 3,945,000 | 4,900,000 | (14,002,000) | |
Prepaid expenses and other current assets | (38,443,000) | (4,005,000) | 2,623,000 | |
Accounts payable | 49,000 | (7,648,000) | 13,646,000 | |
Accrued liabilities | 31,954,000 | 17,832,000 | 6,890,000 | |
Prepaid and accrued income taxes | (11,231,000) | 16,761,000 | (6,130,000) | |
Net cash provided by operating activities | 207,636,000 | 226,917,000 | 194,619,000 | |
Cash flows from investing activities: | ||||
Acquisition of businesses, net of cash acquired | (16,583,000) | (22,359,000) | (3,635,000) | |
Capital expenditures | (98,235,000) | (101,163,000) | (91,808,000) | |
Other | 149,000 | (747,000) | 1,269,000 | |
Net cash used in investing activities | (114,669,000) | (124,269,000) | (94,174,000) | |
Cash flows from financing activities: | ||||
Proceeds from loans payable and long-term debt | 0 | 6,866,000 | 9,388,000 | |
Payments on loans payable and long-term debt | (1,301,000) | (13,055,000) | (113,247,000) | |
Payment of deferred financing costs | (813,000) | |||
Proceeds from exercise of share-based awards, including excess tax benefits | 5,313,000 | 7,799,000 | 5,899,000 | |
Taxes withheld and paid related to net share settlement of equity awards | (5,965,000) | (5,002,000) | (3,527,000) | |
Payment of cash dividends | (2,878,000) | (2,869,000) | (2,860,000) | |
Net cash used in financing activities | (5,644,000) | (6,261,000) | (104,347,000) | |
Effect of exchange rate changes | (81,000) | (11,603,000) | (1,808,000) | |
Net increase (decrease) in cash and cash equivalents | 87,242,000 | 84,784,000 | (5,710,000) | |
Cash and cash equivalents at beginning of period | 276,553,000 | 191,769,000 | 197,479,000 | |
Cash and cash equivalents at end of period | 363,795,000 | [1] | 276,553,000 | 191,769,000 |
Supplemental disclosure of cash flow information: | ||||
Interest paid | 763,000 | 662,000 | 763,000 | |
Income taxes paid, net of refunds received | $ 73,658,000 | $ 59,826,000 | $ 69,755,000 | |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting Policies Business Description UniFirst Corporation (the “Company”) is one of the largest providers of workplace uniforms and protective clothing in the United States. The Company designs, manufactures, personalizes, rents, cleans, delivers, and sells a wide range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. The Company also rents and sells industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services and other safety supplies, to a variety of manufacturers, retailers and service companies. The Company serves businesses of all sizes in numerous industry categories. Typical customers include automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, and others who require employee clothing for image, identification, protection or utility purposes. The Company also provides its customers with restroom and cleaning supplies, including air fresheners, paper products and hand soaps. At certain specialized facilities, the Company decontaminates and cleans work clothes and other items that may have been exposed to radioactive materials and services special cleanroom protective wear. Typical customers for these specialized services include government agencies, research and development laboratories, high technology companies and utility providers operating nuclear reactors. As discussed and described in Note 15, “Segment Reporting”, to these Consolidated Financial Statements, the Company has five reporting segments: US and Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate. The operations of the US and Canadian Rental and Cleaning reporting segment are referred to by the Company as its “industrial laundry operations” and the locations related to this reporting segment are referred to as “industrial laundries”. The Company refers to its US and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its “Core Laundry Operations”. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. Intercompany balances and transactions are eliminated in consolidation. Use of Estimates The preparation of these Consolidated Financial Statements is in conformity with accounting principles generally accepted in the United States (“US GAAP”) which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. These estimates are based on historical information, current trends, and information available from other sources. Actual results could differ from these estimates. Fiscal Year The Company’s fiscal year ends on the last Saturday in August. For financial reporting purposes, fiscal 2016, fiscal 2015 and fiscal 2014 consisted of 52 weeks. Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market securites, and bank short-term investments with maturities of less than ninety days at the date of purchase. Financial Instruments The Company’s financial instruments, which may expose the Company to concentrations of credit risk, include cash and cash equivalents, receivables, accounts payable, loans payable and long-term debt. Each of these financial instruments is recorded at cost, which approximates its fair value given the short maturity of each financial instrument. Revenue Recognition and Allowance for Doubtful Accounts The Company recognizes revenue from rental operations in the period in which the services are provided. Direct sales revenue is recognized in the period in which the services are performed or when the product is shipped. Management judgments and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the allowance for doubtful accounts. The Company considers specific accounts receivable and historical bad debt experience, customer credit worthiness, current economic trends and the age of outstanding balances as part of its evaluation. Changes in estimates are reflected in the period they become known. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Material changes in its estimates may result in significant differences in the amount and timing of bad debt expense recognition for any given period. Revenues do not include taxes we collect from our customers and remit to governmental authorities. Inventories and Rental Merchandise in Service Inventories are stated at the lower of cost or market value, net of any reserve for excess and obsolete inventory. Judgments and estimates are used in determining the likelihood that new goods on hand can be sold to customers or used in rental operations. Historical inventory usage and current revenue trends are considered in estimating both excess and obsolete inventories. If actual product demand and market conditions are less favorable than those projected by management, additional inventory write-downs may be required. The Company uses the first-in, first-out (“FIFO”) method to value its inventories. The components of inventory as of August 27, 2016 and August 29, 2015 were as follows (in thousands): August 27, 2016 August 29, 2015 Raw materials $ 16,826 $ 17,658 Work in process 2,275 2,415 Finished goods 59,786 60,376 Total inventory $ 78,887 $ 80,449 Rental merchandise in service is amortized, primarily on a straight-line basis, over the estimated service lives of the merchandise, which range from 6 to 36 months. In establishing estimated lives for merchandise in service, management considers historical experience and the intended use of the merchandise. Material differences may result in the amount and timing of operating profit for any period if management makes significant changes to these estimates. Property, plant and equipment Property, plant and equipment are recorded at cost. Expenditures for maintenance and repairs are expensed as incurred, while expenditures for renewals and betterments are capitalized. The components of property, plant and equipment as of August 27, 2016 and August 29, 2015 were as follows (in thousands): August 27, 2016 August 29, 2015 Land, buildings and leasehold equipment $ 432,716 $ 402,781 Machinery and equipment 569,627 535,698 Motor vehicles 198,770 193,643 1,201,113 1,132,122 Less: accumulated depreciation 661,295 618,269 Total property, plant and equipment $ 539,818 $ 513,853 The Company provides for depreciation on the straight-line method based on the date the asset is placed in service using the following estimated useful lives: Buildings (in years) 30 - 40 Building components (in years) 10 - 20 Leasehold improvements Shorter of useful life or term of lease Machinery and equipment (in years) 3 - 10 Motor vehicles (in years) 3 - 5 Long-lived assets, including property, plant and equipment, are evaluated for impairment whenever events or circumstances indicate an asset may be impaired. There have been no material impairments of long-lived assets in fiscal 2016, 2015 or 2014. Expenditures for computer software, including amounts capitalized related to the Company’s ongoing project to update its customer relationship management (“CRM”) systems, are included within machinery and equipment. As of August 27, 2016, the Company had capitalized approximately $47.9 million related to its CRM project, which has not been placed in service as of that date . Goodwill and Other Intangible Assets In accordance with US GAAP, the Company does not amortize goodwill. Instead, the Company tests goodwill for impairment on an annual basis. Management completes its annual goodwill impairment test in the fourth quarter of each fiscal year. In addition, US GAAP requires that companies test goodwill if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit to which goodwill is assigned below its carrying amount. The Company’s evaluation considers changes in the operating environment, competitive information, market trends, operating performance and cash flow modeling. The Company cannot predict future economic conditions and their impact on the Company or the future market value of the Company’s stock. A decline in the Company’s market capitalization and/or deterioration in general economic conditions could negatively and materially impact the Company’s assumptions and assessment of the fair value of the Company’s business. If general economic conditions or the Company’s financial performance deteriorate, the Company may be required to record a goodwill impairment charge in the future which could have a material impact on the Company’s financial condition and results of operations. Definite-lived intangible assets are amortized over their estimated useful lives, which are based on management’s estimates of the period that the assets will generate economic benefits. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable in accordance with US GAAP. There were no impairments of goodwill or indicators of impairment for definite-lived intangible assets in fiscal 2016, 2015 or 2014. As of August 27, 2016, definite-lived intangible assets have a weighted average useful life of approximately 14.1 years. Customer contracts have a weighted average useful life of approximately 14.8 years and other intangible assets, net, which consist of primarily, restrictive covenants, deferred financing costs and trademarks, have a weighted average useful life of approximately 5.3 years. Environmental and Other Contingencies The Company is subject to legal proceedings and claims arising from the conduct of its business operations, including environmental matters, personal injury, customer contract matters and employment claims. Accounting principles generally accepted in the United States require that a liability for contingencies be recorded when it is probable that a liability has occurred and the amount of the liability can be reasonably estimated. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. The Company regularly consults with attorneys and outside consultants, in its consideration of the relevant facts and circumstances, before recording a contingent liability. The Company records accruals for environmental and other contingencies based on enacted laws, regulatory orders or decrees, the Company’s estimates of costs, insurance proceeds, participation by other parties, the timing of payments, and the input of outside consultants and attorneys. The estimated liability for environmental contingencies has been discounted as of August 27, 2016 using risk-free interest rates ranging from 1.6% to 2.3% over periods ranging from ten to thirty years. The estimated current costs, net of legal settlements with insurance carriers, have been adjusted for the estimated impact of inflation at 3% per year. Changes in enacted laws, regulatory orders or decrees, management’s estimates of costs, risk-free interest rates, insurance proceeds, participation by other parties, the timing of payments, the input of the Company’s attorneys and outside consultants or other factual circumstances could have a material impact on the amounts recorded for environmental and other contingent liabilities. Refer to Note 11, “Commitments and Contingencies”, of these Consolidated Financial Statements for additional discussion and analysis. Asset Retirement Obligations Under US GAAP, asset retirement obligations generally apply to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset. The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The Company has recognized as a liability the present value of the estimated future costs to decommission its nuclear laundry facilities. The Company depreciates, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to twenty-eight years. The estimated liability has been based on historical experience in decommissioning nuclear laundry facilities, estimated useful lives of the underlying assets, external vendor estimates as to the cost to decommission these assets in the future, and federal and state regulatory requirements. The estimated current costs have been adjusted for the estimated impact of inflation at 3% per year. The liability has been discounted using credit-adjusted risk-free rates that range from approximately 7.0% to 7.5%. Revisions to the liability could occur due to changes in the Company’s estimated useful lives of the underlying assets, estimated dates of decommissioning, changes in decommissioning costs, changes in federal or state regulatory guidance on the decommissioning of such facilities, or other changes in estimates. Changes due to revised estimates will be recognized by adjusting the carrying amount of the liability and the related long-lived asset if the assets are still in service, or charged to expense in the period if the assets are no longer in service. Insurance The Company is self-insured for certain obligations related to health, workers’ compensation, vehicles and general liability programs. The Company also purchases stop-loss insurance policies in certain instances to protect itself from catastrophic losses. Judgments and estimates are used in determining the potential value associated with reported claims and for events that have occurred, but have not been reported. The Company’s estimates consider historical claims experience and other factors. In certain cases where partial insurance coverage exists, we must estimate the portion of the liability that will be covered by existing insurance policies to arrive at our net expected liability. Receivables for insurance recoveries are recorded as assets, on an undiscounted basis. The Company’s liabilities are based on estimates, and, while the Company believes that its accruals are adequate, the ultimate liability may be significantly different from the amounts recorded. Changes in claims experience, the Company’s ability to settle claims or other estimates and judgments used by management could have a material impact on the amount and timing of expense for any period. Supplemental Executive Retirement Plan and other Pension Plans Pension expense is recognized on an accrual basis over employees’ estimated service periods. Pension expense is generally independent of funding decisions or requirements. The Company (1) recognizes in its statement of financial position the over-funded or under-funded status of its defined benefit postretirement plans measured as the difference between the fair value of plan assets and the benefit obligation, (2) recognizes as a component of other comprehensive (loss) income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period but are not recognized as components of net periodic benefit cost, (3) measures defined benefit plan assets and defined benefit plan obligations as of the date of its statement of financial position, and (4) discloses additional information in the notes to financial statements about certain effects on net periodic benefit cost in the upcoming fiscal year that arise from delayed recognition of the actuarial gains and losses and the prior service costs and credits. Refer to Note 7, “Employee Benefit Plans”, of these Consolidated Financial Statements for further discussion regarding the Company’s pension plans. The calculation of pension expense and the corresponding liability requires the use of a number of critical assumptions, including the expected long-term rates of return on plan assets, the assumed discount rates, assumed rate of compensation increases and life expectancy of participants. Changes in these assumptions can result in different expense and liability amounts, and future actual experience can differ from these assumptions. Pension expense increases as the expected rate of return on pension plan assets decreases. Future changes in plan asset returns, assumed discount rates and various other factors related to the participants in the Company’s pension plans will impact the Company’s future pension expense and liabilities. The Company cannot predict with certainty what these factors will be in the future. Income Taxes The Company computes income tax expense by jurisdiction based on its operations in each jurisdiction. Deferred income taxes are provided for temporary differences between the amounts recognized for income tax and financial reporting purposes at currently enacted tax rates. The Company is periodically reviewed by U.S. domestic and foreign tax authorities regarding the amount of taxes due. These reviews typically include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, the Company records estimated reserves . The Company has undistributed earnings from its foreign subsidiaries of approximately $124.8 million as of August 27, 2016. The Company considers these undistributed earnings as indefinitely reinvested and therefore has not provided for U.S. income taxes or foreign withholding taxes. If these earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of its international subsidiaries were sold or transferred, the Company would likely be subject to additional U.S. income taxes, net of the impact of any available foreign tax credits as well as foreign withholding taxes. It is not practicable to estimate the amount of unrecognized deferred U.S. taxes on these undistributed earnings. Advertising Costs Advertising costs are expensed as incurred and are classified as selling and administrative expenses. The Company incurred advertising costs of $1.5 million, $1.3 million and $1.5 million for the fiscal years ended August 27, 2016, August 29, 2015 and August 30, 2014, respectively. Share-Based Compensation The Company adopted a stock incentive plan (the “1996 Plan”) in November 1996 and reserved 1,500,000 shares of Common Stock for issuance under the 1996 Plan. The 1996 Plan provided for the issuance of stock options and stock appreciation rights (collectively referred to as “Share-Based Awards”). The Company ceased granting new awards under the 1996 Plan as of January 21, 2011, and the 1996 Plan expired in accordance with its terms on January 8, 2012. The Company adopted a stock incentive plan (the “2010 Plan”) in October 2010 and reserved 600,000 shares of Common Stock for issuance under the 2010 Plan. The 2010 Plan replaced the Company’s 1996 Plan. The 2010 Plan permits the award of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, performance shares, dividend equivalent rights and cash-based awards. No awards may be made under the 2010 Plan after January 11, 2021. On October 27, 2014, the Board of Directors, subject to the approval of the Company’s shareholders , which was received at the 2015 annual meeting of shareholders, adopted an amendment to the 2010 Plan to, among other matters, reserve for issuance an additional 750,000 shares and extend to 2025 the time period awards may be granted under the 2010 Plan. As of August 27, 2016, the number of remaining shares available for future grants under the 2010 Plan was 787,010. Share-based compensation, which includes expense related to Share-Based Awards and unrestricted and restricted stock grants, has been recorded in the accompanying Consolidated Statements of Income in selling and administrative expenses. All Share-Based Awards issued to management were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. All Share-Based Awards and shares of unrestricted stock issued to the Company’s non-employee members of the Board of Directors (the “Directors”) under the 2010 Plan were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. Share-Based Awards and shares of unrestricted stock granted to non-employee Directors are granted on the third business day following the annual shareholders’ meeting. All Share-Based Awards issued to employees were granted with an exercise price equal to the fair market value of the Company’s Common Stock on the date of grant and are subject to a five-year cliff-vesting schedule under which the awards become fully vested or exercisable after five years from the date of grant and expire ten years after the grant date. Share-Based Awards and shares of unrestricted stock granted to the Company’s non-employee Directors were fully vested as of the date of grant. Prior to fiscal 2009, non-employee Director Share-Based Award grants expired ten years from the grant date. Beginning in fiscal 2009, non-employee Director Share-Based Award grants expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors . US GAAP requires that share-based compensation cost be measured at the grant date based on the value of the award and be recognized as expense over the requisite service period, which is generally the vesting period. Determining the fair value of Share-Based Awards at the grant date requires judgment, including estimating expected dividends, share price volatility and the amount of Share-Based Awards that are expected to be forfeited. The fair value of each Share-Based Award is estimated on the date of grant using the Black-Scholes option pricing model. Compensation expense for all Share-Based Awards is recognized ratably over the related vesting period. Certain Share-Based Awards and shares of unrestricted stock were granted during fiscal 2016, 2015 and 2014 to non-employee Directors of the Company, which were fully vested upon grant and, with respect to stock appreciation rights, expire eight years after the grant date. Accordingly, compensation expense related to these Share-Based Awards and shares of unrestricted stock in fiscal 2016, 2015 and 2014 were recognized on the date of grant. The Company recognizes compensation expense for restricted stock grants over the related vesting period. The fair value for each restricted and unrestricted stock grant is determined by using the closing price of the Company’s stock on the date of the grant. Refer to Note 12, “Share-Based Compensation”, of these Consolidated Financial Statements for further discussion regarding the Company’s share-based compensation plans. On April 21, 2016, the Company entered into an Amended and Restated Employment Agreement (the “Amended Employment Agreement”) with Ronald D. Croatti, the Company’s Chairman, Chief Executive Officer and President, which extended the term of Mr. Croatti’s existing Employment Agreement, dated as of April 5, 2010, that expired on April 5, 2016. The Amended Employment Agreement provides for the employment of Mr. Croatti for a term of four years, subject to earlier termination as set forth in the Amended Employment Agreement. Also on April 21, 2016, the Company entered into a Restricted Stock Award Agreement (the “Award Agreement”) with Mr. Croatti pursuant to which the Company granted 140,000 shares (the “Performance Restricted Shares”) of restricted Common Stock to Mr. Croatti, of which all remain unvested as of August 27, 2016. The number of Performance Restricted Shares to be earned will depend on whether and the extent to which the Company achieves certain consolidated revenues and adjusted operating margins as set forth in the Award Agreement during certain performance periods set forth in such agreement, including performance periods relating to the second half of fiscal year 2016 and fiscal years 2017 and 2018 (collectively, the “Performance Criteria”). The threshold, target and maximum numbers of Performance Restricted Shares eligible to be earned under the Award Agreement are 100,000, 120,000 and 140,000, respectively. The Performance Restricted Shares earned upon achievement of the Performance Criteria will vest in two equal amounts on the third and fourth anniversaries of the grant date provided that Mr. Croatti continues to be employed by the Company on each such date. In the event that Mr. Croatti’s employment is terminated without cause or by reason of death or disability prior to the vesting of the Performance Restricted Shares, all of the Performance Restricted Shares that have been or will be earned upon achievement of the Performance Criteria through the end of the fiscal year during which such termination occurred will become fully vested . The fair value of each Share-Based Award is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used: Fiscal year ended August 2016 2015 2014 Risk-free interest rate 1.76 % 1.92 % 1.90 % Expected dividend yield 0.25 % 0.27 % 0.27 % Expected life in years 7.40 7.44 7.45 Expected volatility 29.3 % 32.2 % 32.9 % The weighted average fair values of Share-Based Awards granted during fiscal years 2016, 2015 and 2014 were $35.81, $40.06 and $39.08, respectively. Net Income Per Share The Company calculates net income per share in accordance with US GAAP, which requires the Company to allocate income to its unvested participating securities as part of its earnings per share (“EPS”) calculations. The Class B Common Stock may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class B Common Stock. Diluted earnings per share for the Company’s Common Stock assumes the conversion of all of the Company’s Class B Common Stock into Common Stock, full vesting of outstanding restricted stock, and the exercise of Share-Based Awards under the Company’s stock incentive plans. The following table sets forth the computation of basic earnings per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data): Year ended August 27, 2016 August 29, 2015 August 30, 2014 Net income available to shareholders $ 125,026 $ 124,299 $ 119,925 Allocation of net income for Basic: Common Stock $ 99,282 $ 98,665 $ 94,849 Class B Common Stock 25,093 24,761 23,705 Unvested participating shares 651 873 1,371 $ 125,026 $ 124,299 $ 119,925 Weighted average number of shares for Basic: Common Stock 15,245 15,182 15,080 Class B Common Stock 4,816 4,763 4,711 Unvested participating shares 107 153 249 20,168 20,098 20,040 Earnings per share for Basic: Common Stock $ 6.51 $ 6.50 $ 6.29 Class B Common Stock $ 5.21 $ 5.20 $ 5.03 The Company calculates diluted EPS for Common Stock using the more dilutive of the following two methods: • The treasury stock method; or • The two-class method assuming a participating security is not exercised or converted. For the years ended August 27, 2016, August 29, 2015 and August 30, 2014, the Company’s diluted EPS assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares as it was the more dilutive of the two approaches. The following presents a reconciliation of basic and diluted net income per share (in thousands, except per share data): Year Ended August 27, 2016 Year Ended August 29, 2015 Year Ended August 30, 2014 Earnings Earnings Earnings to Common Common to Common Common to Common Common shareholders Shares EPS shareholders Shares EPS shareholders Shares EPS As reported – Basic $ 99,282 15,245 $ 6.51 98,665 15,182 $ 6.50 $ 94,849 15,080 $ 6.29 Add: effect of dilutive potential common shares Share-Based Awards — 93 — 134 — 148 Class B Common Stock 25,093 4,816 24,761 4,763 23,705 4,711 Add: Undistributed earnings allocated to unvested participating shares 636 — 853 — 1,339 — Less: Undistributed earnings reallocated to unvested participating shares (602 ) — (807 ) — (1,267 ) — Diluted EPS – Common Stock $ 124,409 20,154 $ 6.17 123,472 20,079 $ 6.15 $ 118,626 19,939 $ 5.95 Share-Based Awards that would result in the issuance of 9,883 shares of Common Stock were excluded from the calculation of diluted earnings per share for the year ended August 27, 2016 because they were anti-dilutive. Share-Based Awards that would result in the issuance of 10,702 shares of Common Stock were excluded from the calculation of diluted earnings per share for the year ended August 29, 2015 because they were anti-dilutive. Share-Based Awards that would result in the issuance of 185 shares of Common Stock were excluded from the calculation of diluted earnings per share for the year ended August 30, 2014 because they were anti-dilutive. Foreign Currency Translation The functional currency of our foreign operations is the local country’s currency. Transaction gains and losses, including gains and losses on our intercompany transactions, are included in other (income) expense in the accompanying Consolidated Statements of Income. Assets and liabilities of operations outside the United States are translated into U.S. dollars using period-end exchange rates. Revenues and expenses are translated at the average exchange rates in effect during each month of the fiscal year. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive (loss) income in the accompanying Consolidated Balance Sheets. Recent Accounting Pronouncements In May 2014, the FASB issued updated accounting guidance for revenue recognition, which they have subsequently modified. This modified update provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017 and will be required to be applied retrospectively, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company is currently evaluating the adoption method it will apply and the impact that this guidance will have on its financial statements and related disclosures. In February 2015, the FASB issued updated accounting guidance on consolidation requirements. This update changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Accordingly, the standard became effective for the Company on August 28, 2016. The Company expects that adoption of this guidance will not have a material impact on its financial statements. In April 2015, the FASB issued updated guidance on the presentation of debt issuance costs. This update changes the guidance with respect to presenting such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015 |
Note 2 - Acquisitions
Note 2 - Acquisitions | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Acquisitions During the fiscal year ended August 27, 2016, the Company completed six business acquisitions with an aggregate purchase price of approximately $17 .7 million. The results of operations of these acquisitions have been included in the Company’s consolidated financial results since their respective acquisition dates. These acquisitions were not significant in relation to the Company’s consolidated financial results and, therefore, pro forma financial information has not been presented. Aggregate information relating to the acquisition of businesses which were accounted for as purchases is as follows (in thousands, except number of businesses acquired): Year ended August 27, 2016 August 29, 2015 August 30, 2014 Number of businesses acquired 6 7 7 Tangible assets acquired $ 3,572 $ 4,179 $ 949 Intangible assets and goodwill acquired 14,239 18,190 2,686 Liabilities assumed (80 ) (10 ) — Acquisition of businesses $ 17,731 $ 22,359 $ 3,635 Tangible assets acquired primarily relate to accounts receivable, inventory, prepaid expenses and property, plant and equipment. Liabilities assumed primarily relate to accounts payable and accrued liabilities. The amount assigned to intangible assets acquired was based on their respective fair values determined as of the acquisition date. The excess of the purchase price over the tangible and intangible assets was recorded as goodwill. In fiscal 2016 and 2015, all of the goodwill was allocated to the US and Canadian Rental and Cleaning segment and is deductible for tax purposes. |
Note 3 - Fair Value Measurement
Note 3 - Fair Value Measurements | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | 3. Fair Value Measurements US GAAP establishes a framework for measuring fair value and establishes disclosure requirements about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We considered non-performance risk when determining fair value of our derivative financial instruments. The fair value hierarchy prescribed under US GAAP contains three levels as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. All financial assets or liabilities that are measured at fair value on a recurring basis (at least annually) have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date. The assets or liabilities measured at fair value on a recurring basis are summarized in the tables below (in thousands): As of August 27, 2016 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 172,760 $ — $ — $ 172,760 Pension plan assets — 4,753 — 4,753 Foreign currency forward contracts — 188 — 188 Total assets at fair value $ 172,760 $ 4,941 $ — $ 177,701 As of August 29, 2015 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 42,093 $ — $ — $ 42,093 Pension plan assets — 4,757 — 4,757 Foreign currency forward contracts — 524 — 524 Total assets at fair value $ 42,093 $ 5,281 $ — $ 47,374 The Company’s cash equivalents listed above represent money market securities and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company does not adjust the quoted market price for such financial instruments. The Company’s pension plan assets listed above represent guaranteed deposit accounts that are maintained and operated by Prudential Retirement Insurance and Annuity Company (“PRIAC”). All assets are merged with the general assets of PRIAC and are invested predominantly in privately placed securities and mortgages. At the beginning of each calendar year, PRIAC notifies the Company of the annual rates of interest which will be applied to the amounts held in the guaranteed deposit account during the next calendar year. In determining the interest rate to be applied, PRIAC considers the investment performance of the underlying assets of the prior year; however, regardless of the investment performance the Company is contractually guaranteed a minimum rate of return. As such, the Company’s pension plan assets are included within Level 2 of the fair value hierarchy. The Company’s foreign currency forward contracts represent contracts the Company has entered into to exchange Canadian dollars for U.S. dollars at fixed exchange rates in order to manage its exposure related to certain forecasted Canadian dollar denominated sales of one of its subsidiaries. The fair value of the forward contracts is based on similar exchange traded derivatives and are, therefore, included within Level 2 of the fair value hierarchy. |
Note 4 - Income Taxes
Note 4 - Income Taxes | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 4. Income Taxes The provision for income taxes consists of the following (in thousands): Year ended August 27, 2016 August 29, 2015 August 30, 2014 Current: Federal $ 54,654 $ 65,656 $ 54,005 Foreign 1,672 3,350 3,480 State 9,996 11,184 9,216 Total current $ 66,322 $ 80,190 $ 66,701 Deferred: Federal $ 10,803 $ (2,705 ) $ 6,838 Foreign (217 ) 34 59 State 1,437 (550 ) 1,828 Total deferred $ 12,023 $ (3,221 ) $ 8,725 Total $ 78,345 $ 76,969 $ 75,426 The following table reconciles the provision for income taxes using the statutory federal income tax rate to the actual provision for income taxes: August 27, 2016 August 29, 2015 August 30, 2014 Income taxes at the statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes 3.5 3.5 3.8 Adjustments to tax reserves 0.2 0.1 0.1 Foreign tax rate differential -0.4 -0.7 -0.5 Permanent and other 0.2 0.3 0.2 Total 38.5 % 38.2 % 38.6 % The tax effect of items giving rise to the Company’s deferred tax assets and liabilities is as follows (in thousands): August 27, 2016 August 29, 2015 Deferred Tax Assets Payroll and benefit related $ 25,091 $ 22,533 Insurance related 14,404 14,565 Environmental 10,465 9,119 Other 10,320 10,438 Total deferred tax assets $ 60,280 $ 56,655 Deferred Tax Liabilities Tax in excess of book depreciation $ 48,414 $ 36,888 Purchased intangible assets 35,697 33,428 Rental merchandise in service 51,869 51,772 Total deferred tax liabilities 135,980 122,088 Net deferred tax liability $ 75,700 $ 65,433 The Company has evaluated its deferred tax assets and believes that they will be fully recovered. As a result, the Company has not established a valuation allowance. As of August 27, 2016 and August 29, 2015, there was $3.3 million and $0.9 million, respectively, in total unrecognized tax benefits, which if recognized, would favorably impact the Company’s effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense which is consistent with the recognition of these items in prior reporting periods. As of August 27, 2016 and August 29, 2015, the Company had accrued a total of $0.1 million in interest and penalties, in its long-term accrued liabilities. For the years ended August 27, 2016, August 29, 2015 and August 30, 2014 the Company recognized a nominal expense in its Consolidated Statement of Income related to interest and penalties. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance at August 30, 2014 $ 1,170 Additions based on tax positions related to the current year 395 Statute expirations (253 ) Balance at August 29, 2015 $ 1,312 Additions based on tax positions related to the current year 424 Additions for tax positions of prior years 2,145 Statute expirations (138 ) Balance at August 27, 2016 $ 3,743 The Company has a significant portion of its operations in the United States and Canada. It is required to file federal income tax returns as well as state income tax returns in a majority of the U.S. states and also in the Canadian provinces of Alberta, British Columbia, Ontario, Saskatchewan, Quebec and New Brunswick. At times, the Company is subject to audits in these jurisdictions, which typically are complex and can require several years to resolve. The final resolution of any such tax audits could result in either a reduction in the Company’s accruals or an increase in its income tax provision, both of which could have a material impact on the consolidated results of operations in any given period. U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2012 and 2008, respectively, and the Company has concluded an audit of U.S. federal income taxes for 2010 and 2011. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2011. The Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change significantly in the next 12 months. |
Note 5 - Loans Payable and Long
Note 5 - Loans Payable and Long-term Debt | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 5. Loans Payable and Long-term Debt As of August 27, 2016, the Company had no loans payable outstanding compared to August 29, 2015 when it had $1.4 million of loans payable outstanding. On April 11, 2016, the Company entered into an amended and restated $250.0 million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which matures on April 11, 2021. The Credit Agreement amended and restated the Company’s prior $250.0 million revolving credit agreement, which was scheduled to mature on May 4, 2016. Under the Credit Agreement, the Company is able to borrow funds at variable interest rates based on, at its election, the Eurodollar rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio. Availability of credit requires compliance with certain financial and other covenants, including a maximum consolidated funded debt ratio and minimum consolidated interest coverage ratio as defined in the Credit Agreement. The Company tests its compliance with these financial covenants on a fiscal quarterly basis. At August 27, 2016, the interest rates applicable to the Company’s borrowings under the Credit Agreement would be calculated as LIBOR plus 75 basis points at the time of the respective borrowing. As of August 27, 2016, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $53.0 million, leaving $197.0 million available for borrowing under the Credit Agreement. As of August 27, 2016, the Company was in compliance with all covenants under the Credit Agreement. |
Note 6 - Derivative Instruments
Note 6 - Derivative Instruments and Hedging Activities | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 6. Derivative Instruments and Hedging Activities The Company uses derivative financial instruments to mitigate its exposure to fluctuations in foreign currencies on certain forecasted transactions denominated in foreign currencies. US GAAP requires that all our derivative instruments be recorded on the balance sheet at fair value. All subsequent changes in a derivative’s fair value are recognized in income, unless specific hedge accounting criteria are met. Derivative instruments that qualify for hedge accounting are classified as a hedge of the variability of cash flows to be received or paid related to a recognized asset, liability or forecasted transaction. Changes in the fair value of a derivative that is highly effective and designated as a cash flow hedge are recognized in accumulated other comprehensive (loss) income until the hedged item or forecasted transaction is recognized in earnings. We perform an assessment at the inception of the hedge and on a quarterly basis thereafter, to determine whether our derivatives are highly effective in offsetting changes in the value of the hedged items. Any changes in the fair value resulting from hedge ineffectiveness are immediately recognized as income or expense. In January 2015, the Company entered into sixteen forward contracts to exchange Canadian dollars (“CAD”) for U.S. dollars at fixed exchange rates in order to manage its exposure related to certain forecasted CAD denominated sales of one of its subsidiaries. The hedged transactions are specified as the first amount of CAD denominated revenues invoiced by one of the Company’s domestic subsidiaries each fiscal quarter, beginning in the third fiscal quarter of 2015 and continuing through the second fiscal quarter of 2019. In total, the Company will sell approximately 31.0 million CAD at an average Canadian-dollar exchange rate of 0.7825 over these quarterly periods. The Company concluded that the forward contracts met the criteria to qualify as a cash flow hedge under US GAAP. Accordingly, the Company has reflected all changes in the fair value of the forward contracts in accumulated other comprehensive (loss) income, a component of shareholders’ equity. Upon the maturity of each foreign exchange forward contract, the gain or loss on the contract will be recorded as an adjustment to revenues. As of August 27, 2016, the Company had forward contracts with a notional value of approximately 17.1 million CAD outstanding and recorded the fair value of the contracts of $0.1 million in other long-term assets and $0.1 million in prepaid expenses and other current assets with a corresponding gain in accumulated other comprehensive (loss) income of $0.1 million, which was recorded net of tax. For the fiscal year ended August 27, 2016, the Company reclassified $0.2 million from accumulated other comprehensive (loss) income to revenue, related to the derivative financial instruments. The gain in accumulated other comprehensive (loss) income as of August 27, 2016 is expected to be reclassified to revenues prior to its maturity on February 22, 2019. |
Note 7 - Employee Benefit Plans
Note 7 - Employee Benefit Plans | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 7 . Employee Benefit Plans Defined Contribution Retirement Savings Plan The Company has a defined contribution retirement savings plan with a 401(k) feature for all eligible U.S. and Canadian employees not under collective bargaining agreements. The Company matches a portion of the employee’s contribution and may make an additional contribution at its discretion. Contributions charged to expense under the plan for the years ended August 27, 2016, August 29, 2015 and August 30, 2014 were $13.8 million, $15.8 million and $16.4 million, respectively. Pension Plans and Supplemental Executive Retirement Plans The Company accounts for its pension plans and Supplemental Executive Retirement Plan on an accrual basis over employees’ estimated service periods. The Company (1) recognizes in its statement of financial position the over-funded or under-funded status of its defined benefit postretirement plans measured as the difference between the fair value of plan assets and the benefit obligation, (2) recognizes as a component of other comprehensive (loss) income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period but are not recognized as components of net periodic benefit cost, (3) measures defined benefit plan assets and defined benefit plan obligations as of the date of its statement of financial position, and (4) discloses additional information in the notes to financial statements about certain effects on net periodic benefit cost in the upcoming fiscal year that arise from delayed recognition of the actuarial gains and losses and the prior service costs and credits. The Company maintains an unfunded Supplemental Executive Retirement Plan (“SERP”) for certain eligible employees of the Company. The benefits are based on the employee’s compensation upon retirement. The amount charged to expense related to this plan amounted to approximately $2.4 million, $2.8 million and $2.1 million for the fiscal years ended 2016, 2015 and 2014, respectively. The Company maintains a non-contributory defined benefit pension plan (“UniFirst Plan”) covering union employees at one of its locations. The benefits are based on years of service. The UniFirst Plan assets are invested in a Guaranteed Deposit Account (“GDA”) that is maintained and operated by Prudential Retirement Insurance and Annuity Company (“PRIAC”). All assets are merged with the general assets of PRIAC and are invested predominantly in privately placed securities and mortgages. At the beginning of each calendar year, PRIAC notifies the Company of the annual rates of interest which will be applied to the amounts held in the Guaranteed Deposit Account during the next calendar year. In determining the interest rate to be applied, PRIAC considers the investment performance of the underlying assets of the prior year; however, regardless of the investment performance the annual interest rate applied per the contract must be a minimum of 3.25%. The amount charged to expense related to this plan amounted to approximately $0.4 million for fiscal years ended 2016, 2015 and 2014. In connection with one of the Company’s acquisitions, the Company assumed liabilities related to a frozen pension plan covering many of the acquired Company’s former employees (“Textilease Plan”). The pension benefits are based on years of service and the employee’s compensation. The Textilease Plan assets are held in a separate GDA with PRIAC; however the minimum interest rate per the Textilease Plan contract is 1.5%. The amount charged to expense related to this plan amounted to approximately $0.2 million, $0.3 million and $0.2 million for fiscal years ended 2016, 2015 and 2014, respectively. The Company refers to its UniFirst Plan and Textilease Plan collectively as its “Pension Plans”. The components of net periodic benefit cost related to the Company’s Pension Plans and SERP for the years ended August 27, 2016, August 29, 2015 and August 30, 2014 were as follows (in thousands): Pension Plans SERP 2016 2015 2014 2016 2015 2014 Service cost $ 204 $ 192 $ 172 $ 819 $ 821 $ 615 Interest cost 307 294 328 984 1,133 942 Expected return on assets (177 ) (182 ) (183 ) — — — Amortization of prior service cost 84 62 62 368 368 368 Amortization of unrecognized loss 105 152 113 274 461 151 Other events 43 174 72 — — — Net periodic benefit cost $ 566 $ 692 $ 564 $ 2,445 $ 2,783 $ 2,076 The calculation of pension expense and the corresponding liability requires the use of a number of critical assumptions, including the expected long-term rates of return on plan assets, the assumed discount rate, the assumed rate of compensation increases and life expectancy of participants. Changes in these assumptions can result in different expense and liability amounts, and future actual experience can differ from these assumptions. Pension expense increases as the expected rate of return on pension plan assets decreases. Future changes in plan asset returns, assumed discount rates and various other factors related to the participants in the Company’s pension plans will impact its future pension expense and liabilities. The Company cannot predict with certainty what these factors will be in the future. The Company’s obligations and funded status related to its Pension Plans and SERP as of August 27, 2016 and August 29, 2015 were as follows (in thousands): Pension Plans SERP 2016 2015 2016 2015 Change in benefit obligation: Projected benefit obligation, beginning of year $ 8,479 $ 8,755 $ 23,755 $ 21,284 Service cost 204 192 819 821 Interest cost 307 294 984 1,133 Amendments — 263 — — Actuarial loss (gain) 506 (228 ) 5,568 290 Benefits paid (370 ) (314 ) (430 ) (243 ) Settlements (126 ) (483 ) — — Projected benefit obligation, end of year $ 9,000 $ 8,479 $ 30,696 $ 23,285 Change in plan assets: Fair value of plan assets, beginning of year $ 4,757 $ 5,008 $ — $ — Actual return on plan assets 71 153 — — Employer contributions 420 394 — — Benefits paid (370 ) (314 ) — — Settlements (125 ) (484 ) — — Fair value of plan assets, end of year $ 4,753 $ 4,757 $ — $ — Funded status (net amount recognized): $ (4,247 ) $ (3,722 ) $ (30,696 ) $ (23,285 ) As of August 27, 2016 and August 29, 2015, the accumulated benefit obligations for the Company’s Pension Plans were $8.9 million and $8.3 million, respectively. As of August 27, 2016 and August 29, 2015, the accumulated benefit obligations for the Company’s SERP were $30.7 million and $18.6 million, respectively. The amounts recorded on the Consolidated Balance Sheet for the Company’s Pension Plans and SERP as of August 27, 2016 and August 29, 2015 were as follows (in thousands): Pension Plans SERP 2016 2015 2016 2015 Deferred tax assets $ 1,119 $ 988 $ 4,046 $ 1,975 Accrued liabilities $ 4,247 $ 3,722 $ 30,696 $ 23,285 Accumulated other comprehensive loss $ (1,788 ) $ (1,538 ) $ (6,463 ) $ (3,181 ) As of August 27, 2016 and August 29, 2015, the amounts recognized in accumulated other comprehensive loss for the Company’s Pension Plans and SERP (in thousands): Pension Plans SERP 2016 2015 2016 2015 Net actuarial loss $ (1,497 ) $ (1,199 ) $ (6,429 ) $ (2,918 ) Unrecognized prior service cost (291 ) (339 ) (34 ) (263 ) Accumulated other comprehensive loss $ (1,788 ) $ (1,538 ) $ (6,463 ) $ (3,181 ) The weighted average assumptions used in calculating the Company’s projected benefit obligation as of August 27, 2016 and August 29, 2015, were as follows: Pension Plans SERP 2016 2015 2016 2015 Discount rate 2.9 % 3.8 % 3.3 % 4.1 % Rate of compensation increase N/A N/A 5.0 % 5.0 % Pension Plans SERP 2016 2015 2014 2016 2015 2014 Discount rate 3.8 % 3.6 % 4.3 % 4.2 % 3.8 % 4.6 % Expected return on plan assets 3.9 % 3.9 % 4.0 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 5.0 % 5.0 % 5.0 % The following benefit payments, which reflect expected future service, that are expected to be paid for the five fiscal years subsequent to August 27, 2016 and thereafter are as follows (in thousands): Pension Plans SERP 2017 $ 890 $ 978 2018 387 1,036 2019 756 1,038 2020 574 1,098 2021 420 1,308 Thereafter 5,973 25,238 Total benefit payments $ 9,000 $ 30,696 |
Note 8 - Goodwill and Other Int
Note 8 - Goodwill and Other Intangible Assets | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8 . Goodwill and Other Intangible Assets As discussed in Note 2, Year ended August 27, 2016 Weighted Average Life in Years August 29, 2015 Weighted Average Life in Years Goodwill $ 7,481 N/A $ 10,272 N/A Customer contracts 6,088 14.8 6,199 14.9 Other intangible assets 670 5.3 1,603 5.3 Total intangible assets and goodwill acquired $ 14,239 $ 18,074 The Company does not amortize goodwill, but it is reviewed annually or more frequently if certain indicators arise, for impairment. There were no impairment losses related to goodwill or intangible assets during the years ended August 27, 2016, August 29, 2015 or August 30, 2014. The changes in the carrying amount of goodwill are as follows (in thousands): Balance as of August 30, 2014 $ 303,648 Goodwill recorded during the period 10,272 Other (787 ) Balance as of August 29, 2015 $ 313,133 Goodwill recorded during the period 7,481 Other 27 Balance as of August 27, 2016 $ 320,641 As of August 27, 2016, the Company has allocated $315.9 million, $4.1 million and $0.6 million of goodwill to its US and Canadian Rental and Cleaning, Specialty Garments and First Aid segments, respectively. Intangible assets, net in the Company’s accompanying Consolidated Balance Sheets are as follows (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount August 27, 2016 Customer contracts $ 165,405 $ 129,551 $ 35,854 Other intangible assets 31,382 28,572 2,810 $ 196,787 $ 158,123 $ 38,664 August 29, 2015 Customer contracts $ 159,451 $ 121,427 $ 38,024 Other intangible assets 29,927 27,902 2,025 $ 189,378 $ 149,329 $ 40,049 Estimated amortization expense for the five fiscal years subsequent to August 27, 2016 and thereafter, based on intangible assets, net as of August 27, 2016 is as follows (in thousands): 2017 $ 8,940 2018 8,298 2019 5,466 2020 4,795 2021 3,519 Thereafter 7,646 Total estimated amortization expense $ 38,664 |
Note 9 - Accrued Liabilities
Note 9 - Accrued Liabilities | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Accrued Liabilities [Text Block] | 9. Accrued Liabilities Accrued liabilities in the accompanying Consolidated Balance Sheet consists of the following (in thousands): August 27, 2016 August 29, 2015 Current liabilities: Payroll and benefit related $ 47,423 $ 48,932 Insurance related 25,612 40,123 Environmental related 9,500 7,254 Asset retirement obligations 1,275 — Other 16,972 16,713 Total current liabilities $ 100,782 $ 113,022 Long-term liabilities: Benefit related $ 33,966 $ 26,132 Environmental related 17,247 16,053 Asset retirement obligations 11,757 12,381 Insurance related 41,951 — Total long-term liabilities $ 104,921 $ 54,566 Total accrued liabilities $ 205,703 $ 167,588 |
Note 10 - Asset Retirement Obli
Note 10 - Asset Retirement Obligations | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | 10. Asset Retirement Obligations Asset retirement obligations generally applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset. Accordingly, the Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The Company continues to depreciate, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to twenty-eight years. The Company recognized as a liability the present value of the estimated future costs to decommission its nuclear laundry facilities. The estimated liability is based on historical experience in decommissioning nuclear laundry facilities, estimated useful lives of the underlying assets, external vendor estimates as to the cost to decommission these assets in the future, and federal and state regulatory requirements. The estimated current costs have been adjusted for the estimated impact of inflation at 3% per year. The liability has been discounted using credit-adjusted risk-free rates that range from approximately 7.0% to 7.5% over one to twenty-eight years . Revisions to the liability could occur due to changes in the Company’s estimated useful lives of the underlying assets, estimated dates of decommissioning, changes in decommissioning costs, changes in federal or state regulatory guidance on the decommissioning of such facilities, or other changes in estimates. Changes due to revised estimates will be recognized by adjusting the carrying amount of the liability and the related long-lived asset if the assets are still in service, or charged to expense in the period if the assets are no longer in service. A rollforward of the Company’s asset retirement liability is as follows (in thousands): August 27, 2016 August 29, 2015 Beginning balance $ 12,381 $ 11,675 Accretion expense 826 690 Effect of exchange rate changes (69 ) (484 ) Asset retirement liabilities settled (500 ) — Change in estimate 394 500 Ending balance $ 13,032 $ 12,381 The Company’s asset retirement obligations are included in current and long-term accrued liabilities in the accompanying Consolidated Balance Sheet. |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 11. Commitments and Contingencies Lease Commitments The Company leases certain buildings and equipment from independent parties. Total rent expense on all leases was $10.1 million, $9.8 million and $9.9 million for the fiscal years ended 2016, 2015 and 2014, respectively. Annual minimum lease commitments for the five fiscal years subsequent to August 27, 2016 and thereafter are as follows (in thousands): 2017 $ 8,698 2018 7,168 2019 5,693 2020 4,914 2021 3,822 Thereafter 2,271 Total lease commitments $ 32,566 Environmental and Legal Contingencies The Company and its operations are subject to various federal, state and local laws and regulations governing, among other things, air emissions, wastewater discharges, and the generation, handling, storage, transportation, treatment and disposal of hazardous waste and other substances. In particular, industrial laundries use and must dispose of detergent waste water and other residues, and, in the past used perchloroethylene and other dry cleaning solvents. The Company is attentive to the environmental concerns surrounding the disposal of these materials and has, through the years, taken measures to avoid their improper disposal. In the past, the Company has settled, or contributed to the settlement of, actions or claims brought against the Company relating to the disposal of hazardous materials and there can be no assurance that the Company will not have to expend material amounts to remediate the consequences of any such disposal in the future. US GAAP requires that a liability for contingencies be recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. The Company regularly consults with attorneys and outside consultants in its consideration of the relevant facts and circumstances before recording a contingent liability. Changes in enacted laws, regulatory orders or decrees, management’s estimates of costs, risk-free interest rates, insurance proceeds, participation by other parties, the timing of payments, the input of the Company’s attorneys and outside consultants or other factual circumstances could have a material impact on the amounts recorded for environmental and other contingent liabilities. Under environmental laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on, or in, or emanating from, such property, as well as related costs of investigation and property damage. Such laws often impose liability without regard to whether the owner or lessee knew of, or was responsible for the presence of such hazardous or toxic substances. There can be no assurances that acquired or leased locations have been operated in compliance with environmental laws and regulations or that future uses or conditions will not result in the imposition of liability upon the Company under such laws or expose the Company to third-party actions such as tort suits. The Company continues to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to sites located in or related to Woburn, Massachusetts, Somerville, Massachusetts, Springfield, Massachusetts, Uvalde, Texas, Stockton, California, three sites related to former operations in Williamstown, Vermont, as well as sites located in Goldsboro, North Carolina, Wilmington, North Carolina, Landover, Maryland and Syracuse, New York. The Company has accrued certain costs related to the sites described above as it has been determined that the costs are probable and can be reasonably estimated. The Company has potential exposure related to a parcel of land (the "Central Area") related to the Woburn, Massachusetts site mentioned above. Currently, the consent decree for the Woburn site does not define or require any remediation work in the Central Area. The United States Environmental Protection Agency (the "EPA") has provided the Company and other signatories to the consent decree with comments on the design and implementation of groundwater and soil remedies at the Woburn site and investigation of environmental conditions in the Central Area. The Company, and other signatories, have implemented and proposed to do additional work at the Woburn site but many of the EPA’s comments remain to be resolved. The Company has accrued costs to perform certain work responsive to EPA's comments. The Company has implemented mitigation measures and continues to monitor environmental conditions at the Somerville, Massachusetts site. In addition, the Company has received demands from the local transit authority for reimbursement of certain costs associated with its construction of a new municipal transit station in the area of the Company’s Somerville site. This station is part of a planned extension of the transit system. Due to cost projections of the extension which now substantially exceed original estimates, the local transit authority has placed the extension on hold pending its redesign and receipt of related state and federal approvals and funding increases. The Company has reserved for costs in connection with this matter; however, in light of the uncertainties associated with this matter, these costs and the related reserve may change. The Company has also received notice that the Massachusetts Department of Environmental Protection is conducting an audit of the Company’s investigation and remediation work with respect to the Somerville site. During the fourth quarter of fiscal 2016, the Company entered into a settlement related to environmental litigation which resulted in a $15.9 million gain that was recorded as a reduction of selling and administrative expenses. This gain consisted of amounts previously received but not recognized into income as well as amounts that the Company received in September 2016. The Company routinely reviews and evaluates sites that may require remediation and monitoring and determines its estimated costs based on various estimates and assumptions. These estimates are developed using its internal sources or by third party environmental engineers or other service providers. Internally developed estimates are based on: • Management’s judgment and experience in remediating and monitoring the Company’s sites; • Information available from regulatory agencies as to costs of remediation and monitoring; • The number, financial resources and relative degree of responsibility of other potentially responsible parties (“PRPs”) who may be liable for remediation and monitoring of a specific site; and • The typical allocation of costs among PRPs. There is usually a range of reasonable estimates of the costs associated with each site. In accordance with US GAAP, the Company’s accruals reflect the amount within the range that it believes is the best estimate or the low end of a range of estimates if no point within the range is a better estimate. Where it believes that both the amount of a particular liability and the timing of the payments are reliably determinable, the Company adjusts the cost in current dollars using a rate of 3% for inflation until the time of expected payment and discounts the cost to present value using current risk-free interest rates. As of August 27, 2016, the risk-free interest rates utilized by the Company ranged from 1.6% to 2.3%. For environmental liabilities that have been discounted, the Company includes interest accretion, based on the effective interest method, in selling and administrative expenses on the accompanying Consolidated Statements of Income. The changes to the Company’s environmental liabilities for the years ended August 27, 2016 and August 29, 2015 were as follows (in thousands): Year ended August 27, 2016 August 29, 2015 Beginning balance $ 23,307 $ 19,846 Costs incurred for which reserves have been provided (1,417 ) (2,014 ) Insurance proceeds 101 121 Interest accretion 669 603 Changes in discount rates 1,348 224 Revisions in estimates 2,740 4,527 Ending balance $ 26,748 $ 23,307 Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of August 27, 2016, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below. (In thousands) 2017 2018 2019 2020 2021 Thereafter Total Estimated costs – current dollars $ 9,673 $ 1,859 $ 1,492 $ 1,284 $ 1,172 $ 12,390 $ 27,870 Estimated insurance proceeds (173 ) (159 ) (173 ) (159 ) (173 ) (1,128 ) (1,965 ) Net anticipated costs $ 9,500 $ 1,700 $ 1,319 $ 1,125 $ 999 $ 11,262 $ 25,905 Effect of inflation 7,256 Effect of discounting (6,413 ) Balance as of August 27, 2016 $ 26,748 Estimated insurance proceeds are primarily received from an annuity received as part of a legal settlement with an insurance company. Annual proceeds of approximately $ 0.3 million are deposited into an escrow account which funds remediation and monitoring costs for three sites related to former operations in Williamstown, Vermont. Annual proceeds received but not expended in the current year accumulate in this account and may be used in future years for costs related to this site through the year 2027. As of August 27 2016, the balance in this escrow account, which is held in a trust and is not recorded in the Company’s accompanying Consolidated Balance Sheet, was approximately $ 3.4 million. Also included in estimated insurance proceeds are amounts the Company is entitled to receive pursuant to legal settlements as reimbursements from three insurance companies for estimated costs at the site in Uvalde, Texas. The Company’s nuclear garment decontamination facilities are licensed by the Nuclear Regulatory Commission (“NRC”), or, in certain cases, by the applicable state agency, and are subject to regulation by federal, state and local authorities. There can be no assurance that such regulation will not lead to material disruptions in the Company’s garment decontamination business. From time to time, the Company is also subject to legal proceedings and claims arising from the conduct of its business operations, including personal injury claims, customer contract matters, employment claims and environmental matters as described above. While it is impossible to ascertain the ultimate legal and financial liability with respect to contingent liabilities, including lawsuits and environmental contingencies, the Company believes that the aggregate amount of such liabilities, if any, in excess of amounts covered by insurance have been properly accrued in accordance with US GAAP. It is possible, however, that the future financial position or results of operations for any particular period could be materially affected by changes in the Company’s assumptions or strategies related to these contingencies or changes out of the Company’s control. Other Contingent Liabilities As security for certain agreements with the NRC and various state agencies related to the nuclear operations (see above) and certain insurance programs, the Company had standby irrevocable bank commercial letters of credit of $53.0 million and $52.9 million outstanding as of August 27, 2016 and August 29, 2015, respectively. |
Note 12 - Share-based Compensat
Note 12 - Share-based Compensation | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 12. Share-based Compensation In fiscal 2016, 2015 and 2014, a total of 885, 1,096 and 583 shares of fully vested unrestricted stock, respectively, were granted to certain non-employee Directors of the Company. Accordingly, compensation expense related to the 2016, 2015 and 2014 unrestricted stock was recognized on the date of grant. In fiscal 2016, 2015 and 2014, the Company granted a total of 6,675, 4,875 and 4,700 stock appreciation rights, respectively, under the 2010 Plan to the Company’s non-employee Directors. Such stock appreciation rights were fully vested upon grant, expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors and must be settled in stock at the time of exercise. Accordingly, compensation expense related to the stock appreciation rights was recognized on the date of grant. All Share-Based Awards issued to employees were granted with an exercise price equal to the fair market value of the Company’s Common Stock on the date of grant and are subject to a five-year cliff-vesting schedule under which the awards become fully vested or exercisable after five years from the date of grant and expire ten years after the grant date. Share-Based Awards and shares of unrestricted stock granted to the Company’s non-employee Directors were fully vested as of the date of grant. Prior to fiscal 2009, non-employee Director Share-Based Award grants expired ten years from the grant date. Beginning in fiscal 2009, non-employee Director Share-Based Award grants expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors . US GAAP requires that share-based compensation cost be measured at the grant date based on the value of the award and be recognized as expense over the requisite service period, which is generally the vesting period. Determining the fair value of Share-Based Awards at the grant date requires judgment, including estimating expected dividends, share price volatility and the amount of Share-Based Awards that are expected to be forfeited. The fair value of each Share-Based Award is estimated on the date of grant using the Black-Scholes option pricing model. Compensation expense for all Share-Based Awards is recognized ratably over the related vesting period. The Company recognizes compensation expense for restricted stock grants over the related vesting period. The fair value for each restricted and unrestricted stock grant is determined by using the closing price of the Company’s stock on the date of the grant. On April 21, 2016, the Company entered into an Amended Employment Agreement with Mr. Croatti which extended the term of Mr. Croatti’s existing Employment Agreement, dated as of April 5, 2010, that expired on April 5, 2016. The Amended Employment Agreement provides for the employment of Mr. Croatti for a term of four years, subject to earlier termination as set forth in the Amended Employment Agreement. Also on April 21, 2016, the Company entered into an Award Agreement with Mr. Croatti pursuant to which the Company granted 140,000 Performance Restricted Shares to Mr. Croatti, of which all remain unvested as of August 27, 2016. The number of Performance Restricted Shares to be earned will depend on whether and the extent to which the Company achieves certain Performance Criteria. The threshold, target and maximum numbers of Performance Restricted Shares eligible to be earned under the Award Agreement are 100,000, 120,000 and 140,000, respectively. The Performance Restricted Shares earned upon achievement of the Performance Criteria will vest in two equal amounts on the third and fourth anniversaries of the grant date provided that Mr. Croatti continues to be employed by the Company on each such date. In the event that Mr. Croatti’s employment is terminated without cause or by reason of death or disability prior to the vesting of the Performance Restricted Shares, all of the Performance Restricted Shares that have been or will be earned upon achievement of the Performance Criteria through the end of the fiscal year during which such termination occurred will become fully vested . The fair value of the Performance Restricted Shares was the closing price on April 21, 2016, which was $111.13. Compensation expense for all share-based compensation, which includes Share-Based Awards and restricted stock grants, for the five fiscal years subsequent to August 27, 2016, is expected to be as follows (in thousands): Share-Based Awards Restricted Stock Total 2017 $ 2,576 $ 4,101 $ 6,677 2018 2,165 4,214 6,379 2019 1,484 3,380 4,864 2020 652 1,181 1,833 2021 83 — 83 Total $ 6,960 $ 12,876 $ 19,836 As of August 27, 2016, the total compensation cost not yet recognized related to non-vested Share-Based Awards and restricted stock was approximately $19.8 million. The weighted average periods over which compensation cost for Share-Based Awards and restricted stock will be recognized are 2.2 years and 3.2 years, respectively. The following table summarizes the Share-Based Award activity for the fiscal year ended August 27, 2016: Number of Shares Weighted Average Exercise Price Outstanding, August 29, 2015 645,001 $ 73.72 Granted 95,875 104.55 Exercised (111,935 ) 46.35 Forfeited (18,250 ) 87.35 Outstanding, August 27, 2016 610,691 $ 83.17 Exercisable, August 27, 2016 125,441 $ 64.67 |
Note 13 - Shareholders' Equity
Note 13 - Shareholders' Equity | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 13. Shareholders’ Equity The Company has two classes of common stock: Common Stock and Class B Common Stock. Each share of Common Stock is entitled to one vote, is freely transferable, and is entitled to a cash dividend equal to 125% of any cash dividend paid on each share of Class B Common Stock. Each share of Class B Common Stock is entitled to ten votes and can be converted to Common Stock on a share-for-share basis. However, until converted to Common Stock, shares of Class B Common Stock are not freely transferable. For the year ended August 27, 2016, no shares of Class B Common Stock were converted to Common Stock. |
Note 14 - Accumulated Other Com
Note 14 - Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 14. Accumulated Other Comprehensive (Loss) Income The changes in each component of accumulated other comprehensive (loss) income for the fiscal years ended 2016 and 2015 are as follows (in thousands): Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of August 30, 2014 $ 2,711 $ (5,244 ) $ — $ (2,533 ) Change during the year (23,134 ) 525 729 (21,880 ) Balance as of August 29, 2015 (20,423 ) (4,719 ) 729 (24,413 ) Change during the year (391 ) (3,532 ) (613 ) (4,536 ) Balance as of August 27, 2016 $ (20,814 ) $ (8,251 ) $ 116 $ (28,949 ) (1) Amounts are shown net of tax Amounts reclassified from accumulated other comprehensive (loss) income, net of tax, for the fiscal years ended August 27, 2015 and August 29, 2015 were as follows (in thousands): Year ended August 27, Year ended August 29, 2016 2015 Pension benefit liabilities, net: Actuarial losses $ 43 (a) 151 (a) Total, net of tax 43 151 Derivative financial instruments, net: Forward contracts (215 )(b) 21 (b) Total, net of tax (215 ) 21 Total amounts reclassified, net of tax (172 ) 172 (a) Amounts included in selling and administrative expenses in the accompanying Consolidated Statements of Income. (b) Amounts included in revenues in the accompanying Consolidated Statements of Income. |
Note 15 - Segment Reporting
Note 15 - Segment Reporting | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 15. Segment Reporting Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the Company’s chief executive officer. The Company has six operating segments based on the information reviewed by its chief executive officer: US Rental and Cleaning, Canadian Rental and Cleaning, MFG, Specialty Garments, First Aid and Corporate. The US Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the US and Canadian Rental and Cleaning reporting segment, and as a result, the Company has five reporting segments. The US and Canadian Rental and Cleaning reporting segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the United States and Canada. The laundry locations of the US and Canadian Rental and Cleaning reporting segment are referred to by the Company as “industrial laundries” or “industrial laundry locations.” The MFG operating segment designs and manufactures uniforms and non-garment items primarily for the purpose of providing these goods to the US and Canadian Rental and Cleaning reporting segment. MFG revenues are primarily generated when goods are shipped from the Company’s manufacturing facilities, or its subcontract manufacturers, to other Company locations. These intercompany revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost. Manufactured products are carried in inventory until placed in service at which time they are amortized at this transfer price. On a consolidated basis, intercompany revenues and income are eliminated and the carrying value of inventories and rental merchandise in service is reduced to the manufacturing cost. Income before income taxes from MFG net of the intercompany MFG elimination offsets the merchandise amortization costs incurred by the US and Canadian Rental and Cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from MFG at the transfer price which is above the Company’s manufacturing cost. The Corporate operating segment consists of costs associated with the Company’s distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense. The revenues generated from the Corporate operating segment represent certain direct sales made by the Company directly from its distribution center. The products sold by this operating segment are the same products rented and sold by the US and Canadian Rental and Cleaning reporting segment. In the table below, no assets or capital expenditures are presented for the Corporate operating segment because no assets are allocated to this operating segment in the information reviewed by the chief executive officer. However, depreciation and amortization expense related to certain assets are reflected in income from operations and income before income taxes for the Corporate operating segment. The assets that give rise to this depreciation and amortization are included in the total assets of the US and Canadian Rental and Cleaning reporting segment as this is how they are tracked and reviewed by the Company. The majority of expenses accounted for within the Corporate segment relate to costs of the US and Canadian Rental and Cleaning segment, with the remainder of the costs relating to the Specialty Garment and First Aid segments. The Specialty Garments operating segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear and cleanroom applications and provides cleanroom cleaning services at limited customer locations . The First Aid operating segment sells first aid cabinet services and other safety supplies as well as maintains wholesale distribution and pill packaging operations . The Company refers to the US and Canadian Rental and Cleaning, MFG, and Corporate reporting segments combined as its “Core Laundry Operations,” which is included as a subtotal in the following tables (in thousands): As of and for the year ended August 27, 2016 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,308,152 $ 189,154 $ (188,904 ) $ 20,973 $ 1,329,375 $ 91,257 $ 47,414 $ 1,468,046 Income (loss) from operations $ 201,148 $ 67,385 $ (711 ) $ (81,748 ) $ 186,074 $ 10,204 $ 4,882 $ 201,160 Interest (income) expense, net $ (3,252 ) $ — $ — $ 709 $ (2,543 ) $ — $ — $ (2,543 ) Income (loss) before taxes $ 204,433 $ 67,407 $ (711 ) $ (82,714 ) $ 188,415 $ 10,074 $ 4,882 $ 203,371 Depreciation and amortization $ 57,062 $ 2,073 $ — $ 16,918 $ 76,053 $ 4,332 $ 1,227 $ 81,612 Capital expenditures $ 91,384 $ 1,598 $ — $ — $ 92,982 $ 4,682 $ 571 $ 98,235 Total assets $ 1,567,943 $ 32,556 $ — $ — $ 1,600,499 $ 77,728 $ 23,780 $ 1,702,007 As of and for the year ended August 29, 2015 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,305,240 $ 192,188 $ (192,188 ) $ 17,088 $ 1,322,328 $ 87,513 $ 46,764 $ 1,456,605 Income (loss) from operations $ 219,430 $ 66,190 $ (733 ) $ (97,301 ) $ 187,586 $ 7,355 $ 5,443 $ 200,384 Interest (income) expense, net $ (3,189 ) $ — $ — $ 752 $ (2,437 ) $ — $ — $ (2,437 ) Income (loss) before taxes $ 222,657 $ 66,355 $ (733 ) $ (98,418 ) $ 189,861 $ 5,964 $ 5,443 $ 201,268 Depreciation and amortization $ 53,811 $ 1,536 $ — $ 16,393 $ 71,740 $ 4,331 $ 1,042 $ 77,113 Capital expenditures $ 93,842 $ 2,618 $ — $ — $ 96,460 $ 3,820 $ 883 $ 101,163 Total assets $ 1,401,346 $ 34,075 $ — $ — $ 1,435,421 $ 74,449 $ 23,367 $ 1,533,237 As of and for the year ended August 30, 2014 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,244,408 $ 183,340 $ (183,340 ) $ 15,077 $ 1,259,485 $ 91,484 $ 43,928 $ 1,394,897 Income (loss) from operations $ 209,497 $ 63,675 $ (3,777 ) $ (87,145 ) $ 182,250 $ 7,178 $ 3,847 $ 193,275 Interest (income) expense, net $ (3,077 ) $ — $ — $ 718 $ (2,359 ) $ — $ — $ (2,359 ) Income (loss) before taxes $ 212,551 $ 63,540 $ (3,777 ) $ (87,897 ) $ 184,417 $ 7,087 $ 3,847 $ 195,351 Depreciation and amortization $ 49,116 $ 1,306 $ — $ 15,751 $ 66,173 $ 4,646 $ 933 $ 71,752 Capital expenditures $ 86,430 $ 2,264 $ — $ — $ 88,694 $ 1,847 $ 1,267 $ 91,808 Total assets $ 1,286,984 $ 38,066 $ — $ — $ 1,325,050 $ 77,037 $ 22,074 $ 1,424,161 The Company’s long-lived assets as of August 27, 2016 and August 29, 2015 and revenues and income before income taxes for the years ended August 27, 2016, August 29, 2015 and August 30, 2014 were attributed to the following countries (in thousands): Long-lived assets as of: August 27, 2016 August 29, 2015 United States $ 880,666 $ 831,295 Europe, Canada, Mexico and Nicaragua (1) 43,727 40,119 Total $ 924,393 $ 871,414 Revenues for the year ended: August 27, 2016 August 29, 2015 August 30, 2014 United States $ 1,352,101 $ 1,333,864 $ 1,258,609 Europe and Canada (1) 115,945 122,741 136,288 Total $ 1,468,046 $ 1,456,605 $ 1,394,897 Income before income taxes for the year ended: August 27, 2016 August 29, 2015 August 30, 2014 United States $ 197,441 $ 188,704 $ 182,354 Europe, Canada, Mexico and Nicaragua (1) 5,930 12,564 12,997 Total $ 203,371 $ 201,268 $ 195,351 (1) No country accounts for greater than 10% of total long-lived assets, revenues or income before income taxes |
Note 16 - Subsequent Event
Note 16 - Subsequent Event | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 16. Subsequent Event On September 19, 2016, the Company completed an acquisition of Arrow Uniform (“Arrow”) for approximately $122.0 million. The all-cash transaction is structured as an asset acquisition, with UniFirst acquiring substantially all of Arrow’s assets and virtually none of its liabilities. Arrow, headquartered in Taylor, Michigan, provides uniform and facility service rental programs as well as direct sale uniform programs to a wide range of large and small customers. Arrow operates from 12 locations with nearly 700 employees in five Midwestern states. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) The following is a summary of the results of operations for each of the quarters within the years ended August 27, 2016 and August 29, 2015. This quarterly financial information was prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission; however, the Company believes that the information furnished reflects all adjustments (consisting only of normal recurring adjustments) which were, in the opinion of management, necessary for a fair statement of results in the interim periods. This summary should be read in conjunction with these Consolidated Financial Statements and notes to Consolidated Financial Statements. (In thousands, except per share data) For the year ended August 27, 2016 First Quarter Second Quarter Third Quarter Fourth(1) Quarter Revenues $ 373,384 $ 363,097 $ 367,799 $ 363,766 Income before income taxes 58,358 38,999 48,699 57,315 Provision for income taxes 22,468 15,501 18,555 21,821 Net income $ 35,890 $ 23,498 $ 30,144 $ 35,494 Income per share – basic Common Stock $ 1.88 $ 1.23 $ 1.57 $ 1.84 Class B Common Stock $ 1.50 $ 0.98 $ 1.26 $ 1.47 Income per share – diluted Common Stock $ 1.78 $ 1.16 $ 1.49 $ 1.74 Income allocated to – basic Common Stock $ 28,539 $ 18,691 $ 23,939 $ 28,097 Class B Common Stock $ 7,193 $ 4,704 $ 6,061 $ 7,139 Income allocated to – diluted Common Stock $ 35,741 $ 23,401 $ 30,007 $ 35,250 Weighted average number of shares outstanding – basic Common Stock 15,218 15,241 15,253 15,268 Class B Common Stock 4,795 4,795 4,827 4,850 Weighted average number of shares outstanding – diluted Common Stock 20,132 20,138 20,183 20,223 (1) In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain translated into a $0.48 benefit to the Company’s diluted earnings per share. (In thousands, except per share data) For the year ended August 29, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 370,361 $ 361,462 $ 365,574 $ 359,208 Income before income taxes 60,834 41,376 52,843 46,215 Provision for income taxes 23,421 15,930 20,344 17,274 Net income $ 37,413 $ 25,446 $ 32,499 $ 28,941 Income per share – basic Common Stock $ 1.96 $ 1.33 $ 1.70 $ 1.51 Class B Common Stock $ 1.57 $ 1.06 $ 1.36 $ 1.21 Income per share – diluted Common Stock $ 1.85 $ 1.26 $ 1.61 $ 1.43 Income allocated to – basic Common Stock $ 29,649 $ 20,182 $ 25,817 $ 23,011 Class B Common Stock $ 7,434 $ 5,041 $ 6,483 $ 5,803 Income allocated to – diluted Common Stock $ 37,101 $ 25,235 $ 32,310 $ 28,821 Weighted average number of shares outstanding – basic Common Stock 15,128 15,185 15,207 15,210 Class B Common Stock 4,741 4,741 4,773 4,795 Weighted average number of shares outstanding – diluted Common Stock 20,008 20,065 20,118 20,142 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Aug. 27, 2016 | |
Notes to Financial Statements | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | UNIFIRST CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED AUGUST 27, 2016 (IN THOUSANDS) Description Balance, Beginning of Period Charged to Costs and Expenses Charges for Which Reserves Were Created or Deductions Balance, End of Period Reserves for Accounts Receivable For the year ended August 27, 2016 $ 6,007 $ 6,375 $ (4,707 ) $ 7,675 For the year ended August 29, 2015 $ 5,114 $ 5,098 $ (4,205 ) $ 6,007 For the year ended August 30, 2014 $ 4,894 $ 4,378 $ (4,158 ) $ 5,114 Reserve for Obsolete Inventory For the year ended August 27, 2016 $ 2,614 $ 1,824 $ (1,908 ) $ 2,530 For the year ended August 29, 2015 $ 1,913 $ 2,060 $ (1,359 ) $ 2,614 For the year ended August 30, 2014 $ 2,018 $ 535 $ (640 ) $ 1,913 Separate financial statements of the Company have been omitted because the Company is primarily an operating company and all subsidiaries included in the Consolidated Financial Statements are totally held. All other schedules have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the financial statements or the notes thereto. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 27, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Business Description UniFirst Corporation (the “Company”) is one of the largest providers of workplace uniforms and protective clothing in the United States. The Company designs, manufactures, personalizes, rents, cleans, delivers, and sells a wide range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. The Company also rents and sells industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services and other safety supplies, to a variety of manufacturers, retailers and service companies. The Company serves businesses of all sizes in numerous industry categories. Typical customers include automobile service centers and dealers, delivery services, food and general merchandise retailers, food processors and service operations, light manufacturers, maintenance facilities, restaurants, service companies, soft and durable goods wholesalers, transportation companies, and others who require employee clothing for image, identification, protection or utility purposes. The Company also provides its customers with restroom and cleaning supplies, including air fresheners, paper products and hand soaps. At certain specialized facilities, the Company decontaminates and cleans work clothes and other items that may have been exposed to radioactive materials and services special cleanroom protective wear. Typical customers for these specialized services include government agencies, research and development laboratories, high technology companies and utility providers operating nuclear reactors. As discussed and described in Note 15, “Segment Reporting”, to these Consolidated Financial Statements, the Company has five reporting segments: US and Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate. The operations of the US and Canadian Rental and Cleaning reporting segment are referred to by the Company as its “industrial laundry operations” and the locations related to this reporting segment are referred to as “industrial laundries”. The Company refers to its US and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its “Core Laundry Operations”. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. Intercompany balances and transactions are eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of these Consolidated Financial Statements is in conformity with accounting principles generally accepted in the United States (“US GAAP”) which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. These estimates are based on historical information, current trends, and information available from other sources. Actual results could differ from these estimates. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year The Company’s fiscal year ends on the last Saturday in August. For financial reporting purposes, fiscal 2016, fiscal 2015 and fiscal 2014 consisted of 52 weeks. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include cash in banks, money market securites, and bank short-term investments with maturities of less than ninety days at the date of purchase. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments The Company’s financial instruments, which may expose the Company to concentrations of credit risk, include cash and cash equivalents, receivables, accounts payable, loans payable and long-term debt. Each of these financial instruments is recorded at cost, which approximates its fair value given the short maturity of each financial instrument. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition and Allowance for Doubtful Accounts The Company recognizes revenue from rental operations in the period in which the services are provided. Direct sales revenue is recognized in the period in which the services are performed or when the product is shipped. Management judgments and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the allowance for doubtful accounts. The Company considers specific accounts receivable and historical bad debt experience, customer credit worthiness, current economic trends and the age of outstanding balances as part of its evaluation. Changes in estimates are reflected in the period they become known. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Material changes in its estimates may result in significant differences in the amount and timing of bad debt expense recognition for any given period. Revenues do not include taxes we collect from our customers and remit to governmental authorities. |
Inventory, Policy [Policy Text Block] | Inventories and Rental Merchandise in Service Inventories are stated at the lower of cost or market value, net of any reserve for excess and obsolete inventory. Judgments and estimates are used in determining the likelihood that new goods on hand can be sold to customers or used in rental operations. Historical inventory usage and current revenue trends are considered in estimating both excess and obsolete inventories. If actual product demand and market conditions are less favorable than those projected by management, additional inventory write-downs may be required. The Company uses the first-in, first-out (“FIFO”) method to value its inventories. The components of inventory as of August 27, 2016 and August 29, 2015 were as follows (in thousands): August 27, 2016 August 29, 2015 Raw materials $ 16,826 $ 17,658 Work in process 2,275 2,415 Finished goods 59,786 60,376 Total inventory $ 78,887 $ 80,449 Rental merchandise in service is amortized, primarily on a straight-line basis, over the estimated service lives of the merchandise, which range from 6 to 36 months. In establishing estimated lives for merchandise in service, management considers historical experience and the intended use of the merchandise. Material differences may result in the amount and timing of operating profit for any period if management makes significant changes to these estimates. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant and equipment Property, plant and equipment are recorded at cost. Expenditures for maintenance and repairs are expensed as incurred, while expenditures for renewals and betterments are capitalized. The components of property, plant and equipment as of August 27, 2016 and August 29, 2015 were as follows (in thousands): August 27, 2016 August 29, 2015 Land, buildings and leasehold equipment $ 432,716 $ 402,781 Machinery and equipment 569,627 535,698 Motor vehicles 198,770 193,643 1,201,113 1,132,122 Less: accumulated depreciation 661,295 618,269 Total property, plant and equipment $ 539,818 $ 513,853 The Company provides for depreciation on the straight-line method based on the date the asset is placed in service using the following estimated useful lives: Buildings (in years) 30 - 40 Building components (in years) 10 - 20 Leasehold improvements Shorter of useful life or term of lease Machinery and equipment (in years) 3 - 10 Motor vehicles (in years) 3 - 5 Long-lived assets, including property, plant and equipment, are evaluated for impairment whenever events or circumstances indicate an asset may be impaired. There have been no material impairments of long-lived assets in fiscal 2016, 2015 or 2014. Expenditures for computer software, including amounts capitalized related to the Company’s ongoing project to update its customer relationship management (“CRM”) systems, are included within machinery and equipment. As of August 27, 2016, the Company had capitalized approximately $47.9 million related to its CRM project, which has not been placed in service as of that date . |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Other Intangible Assets In accordance with US GAAP, the Company does not amortize goodwill. Instead, the Company tests goodwill for impairment on an annual basis. Management completes its annual goodwill impairment test in the fourth quarter of each fiscal year. In addition, US GAAP requires that companies test goodwill if events occur or circumstances change that would more likely than not reduce the fair value of a reporting unit to which goodwill is assigned below its carrying amount. The Company’s evaluation considers changes in the operating environment, competitive information, market trends, operating performance and cash flow modeling. The Company cannot predict future economic conditions and their impact on the Company or the future market value of the Company’s stock. A decline in the Company’s market capitalization and/or deterioration in general economic conditions could negatively and materially impact the Company’s assumptions and assessment of the fair value of the Company’s business. If general economic conditions or the Company’s financial performance deteriorate, the Company may be required to record a goodwill impairment charge in the future which could have a material impact on the Company’s financial condition and results of operations. Definite-lived intangible assets are amortized over their estimated useful lives, which are based on management’s estimates of the period that the assets will generate economic benefits. Definite-lived intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable in accordance with US GAAP. There were no impairments of goodwill or indicators of impairment for definite-lived intangible assets in fiscal 2016, 2015 or 2014. As of August 27, 2016, definite-lived intangible assets have a weighted average useful life of approximately 14.1 years. Customer contracts have a weighted average useful life of approximately 14.8 years and other intangible assets, net, which consist of primarily, restrictive covenants, deferred financing costs and trademarks, have a weighted average useful life of approximately 5.3 years. |
Environmental Costs, Policy [Policy Text Block] | Environmental and Other Contingencies The Company is subject to legal proceedings and claims arising from the conduct of its business operations, including environmental matters, personal injury, customer contract matters and employment claims. Accounting principles generally accepted in the United States require that a liability for contingencies be recorded when it is probable that a liability has occurred and the amount of the liability can be reasonably estimated. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. The Company regularly consults with attorneys and outside consultants, in its consideration of the relevant facts and circumstances, before recording a contingent liability. The Company records accruals for environmental and other contingencies based on enacted laws, regulatory orders or decrees, the Company’s estimates of costs, insurance proceeds, participation by other parties, the timing of payments, and the input of outside consultants and attorneys. The estimated liability for environmental contingencies has been discounted as of August 27, 2016 using risk-free interest rates ranging from 1.6% to 2.3% over periods ranging from ten to thirty years. The estimated current costs, net of legal settlements with insurance carriers, have been adjusted for the estimated impact of inflation at 3% per year. Changes in enacted laws, regulatory orders or decrees, management’s estimates of costs, risk-free interest rates, insurance proceeds, participation by other parties, the timing of payments, the input of the Company’s attorneys and outside consultants or other factual circumstances could have a material impact on the amounts recorded for environmental and other contingent liabilities. Refer to Note 11, “Commitments and Contingencies”, of these Consolidated Financial Statements for additional discussion and analysis. |
Asset Retirement Obligations and Environmental Cost, Policy [Policy Text Block] | Asset Retirement Obligations Under US GAAP, asset retirement obligations generally apply to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or the normal operation of a long-lived asset. The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The Company has recognized as a liability the present value of the estimated future costs to decommission its nuclear laundry facilities. The Company depreciates, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately one to twenty-eight years. The estimated liability has been based on historical experience in decommissioning nuclear laundry facilities, estimated useful lives of the underlying assets, external vendor estimates as to the cost to decommission these assets in the future, and federal and state regulatory requirements. The estimated current costs have been adjusted for the estimated impact of inflation at 3% per year. The liability has been discounted using credit-adjusted risk-free rates that range from approximately 7.0% to 7.5%. Revisions to the liability could occur due to changes in the Company’s estimated useful lives of the underlying assets, estimated dates of decommissioning, changes in decommissioning costs, changes in federal or state regulatory guidance on the decommissioning of such facilities, or other changes in estimates. Changes due to revised estimates will be recognized by adjusting the carrying amount of the liability and the related long-lived asset if the assets are still in service, or charged to expense in the period if the assets are no longer in service. |
Insurance [Policy Text Block] | Insurance The Company is self-insured for certain obligations related to health, workers’ compensation, vehicles and general liability programs. The Company also purchases stop-loss insurance policies in certain instances to protect itself from catastrophic losses. Judgments and estimates are used in determining the potential value associated with reported claims and for events that have occurred, but have not been reported. The Company’s estimates consider historical claims experience and other factors. In certain cases where partial insurance coverage exists, we must estimate the portion of the liability that will be covered by existing insurance policies to arrive at our net expected liability. Receivables for insurance recoveries are recorded as assets, on an undiscounted basis. The Company’s liabilities are based on estimates, and, while the Company believes that its accruals are adequate, the ultimate liability may be significantly different from the amounts recorded. Changes in claims experience, the Company’s ability to settle claims or other estimates and judgments used by management could have a material impact on the amount and timing of expense for any period. |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Supplemental Executive Retirement Plan and other Pension Plans Pension expense is recognized on an accrual basis over employees’ estimated service periods. Pension expense is generally independent of funding decisions or requirements. The Company (1) recognizes in its statement of financial position the over-funded or under-funded status of its defined benefit postretirement plans measured as the difference between the fair value of plan assets and the benefit obligation, (2) recognizes as a component of other comprehensive (loss) income, net of tax, the actuarial gains and losses and the prior service costs and credits that arise during the period but are not recognized as components of net periodic benefit cost, (3) measures defined benefit plan assets and defined benefit plan obligations as of the date of its statement of financial position, and (4) discloses additional information in the notes to financial statements about certain effects on net periodic benefit cost in the upcoming fiscal year that arise from delayed recognition of the actuarial gains and losses and the prior service costs and credits. Refer to Note 7, “Employee Benefit Plans”, of these Consolidated Financial Statements for further discussion regarding the Company’s pension plans. The calculation of pension expense and the corresponding liability requires the use of a number of critical assumptions, including the expected long-term rates of return on plan assets, the assumed discount rates, assumed rate of compensation increases and life expectancy of participants. Changes in these assumptions can result in different expense and liability amounts, and future actual experience can differ from these assumptions. Pension expense increases as the expected rate of return on pension plan assets decreases. Future changes in plan asset returns, assumed discount rates and various other factors related to the participants in the Company’s pension plans will impact the Company’s future pension expense and liabilities. The Company cannot predict with certainty what these factors will be in the future. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company computes income tax expense by jurisdiction based on its operations in each jurisdiction. Deferred income taxes are provided for temporary differences between the amounts recognized for income tax and financial reporting purposes at currently enacted tax rates. The Company is periodically reviewed by U.S. domestic and foreign tax authorities regarding the amount of taxes due. These reviews typically include inquiries regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, the Company records estimated reserves . The Company has undistributed earnings from its foreign subsidiaries of approximately $124.8 million as of August 27, 2016. The Company considers these undistributed earnings as indefinitely reinvested and therefore has not provided for U.S. income taxes or foreign withholding taxes. If these earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of its international subsidiaries were sold or transferred, the Company would likely be subject to additional U.S. income taxes, net of the impact of any available foreign tax credits as well as foreign withholding taxes. It is not practicable to estimate the amount of unrecognized deferred U.S. taxes on these undistributed earnings. |
Advertising Costs, Policy [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred and are classified as selling and administrative expenses. The Company incurred advertising costs of $1.5 million, $1.3 million and $1.5 million for the fiscal years ended August 27, 2016, August 29, 2015 and August 30, 2014, respectively. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Compensation The Company adopted a stock incentive plan (the “1996 Plan”) in November 1996 and reserved 1,500,000 shares of Common Stock for issuance under the 1996 Plan. The 1996 Plan provided for the issuance of stock options and stock appreciation rights (collectively referred to as “Share-Based Awards”). The Company ceased granting new awards under the 1996 Plan as of January 21, 2011, and the 1996 Plan expired in accordance with its terms on January 8, 2012. The Company adopted a stock incentive plan (the “2010 Plan”) in October 2010 and reserved 600,000 shares of Common Stock for issuance under the 2010 Plan. The 2010 Plan replaced the Company’s 1996 Plan. The 2010 Plan permits the award of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, performance shares, dividend equivalent rights and cash-based awards. No awards may be made under the 2010 Plan after January 11, 2021. On October 27, 2014, the Board of Directors, subject to the approval of the Company’s shareholders , which was received at the 2015 annual meeting of shareholders, adopted an amendment to the 2010 Plan to, among other matters, reserve for issuance an additional 750,000 shares and extend to 2025 the time period awards may be granted under the 2010 Plan. As of August 27, 2016, the number of remaining shares available for future grants under the 2010 Plan was 787,010. Share-based compensation, which includes expense related to Share-Based Awards and unrestricted and restricted stock grants, has been recorded in the accompanying Consolidated Statements of Income in selling and administrative expenses. All Share-Based Awards issued to management were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. All Share-Based Awards and shares of unrestricted stock issued to the Company’s non-employee members of the Board of Directors (the “Directors”) under the 2010 Plan were recommended to the Board of Directors by the Compensation Committee and approved by the Board of Directors. Share-Based Awards and shares of unrestricted stock granted to non-employee Directors are granted on the third business day following the annual shareholders’ meeting. All Share-Based Awards issued to employees were granted with an exercise price equal to the fair market value of the Company’s Common Stock on the date of grant and are subject to a five-year cliff-vesting schedule under which the awards become fully vested or exercisable after five years from the date of grant and expire ten years after the grant date. Share-Based Awards and shares of unrestricted stock granted to the Company’s non-employee Directors were fully vested as of the date of grant. Prior to fiscal 2009, non-employee Director Share-Based Award grants expired ten years from the grant date. Beginning in fiscal 2009, non-employee Director Share-Based Award grants expire on the earlier of the eighth anniversary of the grant date or the second anniversary of the date that the Director ceases to be a member of the Board of Directors . US GAAP requires that share-based compensation cost be measured at the grant date based on the value of the award and be recognized as expense over the requisite service period, which is generally the vesting period. Determining the fair value of Share-Based Awards at the grant date requires judgment, including estimating expected dividends, share price volatility and the amount of Share-Based Awards that are expected to be forfeited. The fair value of each Share-Based Award is estimated on the date of grant using the Black-Scholes option pricing model. Compensation expense for all Share-Based Awards is recognized ratably over the related vesting period. Certain Share-Based Awards and shares of unrestricted stock were granted during fiscal 2016, 2015 and 2014 to non-employee Directors of the Company, which were fully vested upon grant and, with respect to stock appreciation rights, expire eight years after the grant date. Accordingly, compensation expense related to these Share-Based Awards and shares of unrestricted stock in fiscal 2016, 2015 and 2014 were recognized on the date of grant. The Company recognizes compensation expense for restricted stock grants over the related vesting period. The fair value for each restricted and unrestricted stock grant is determined by using the closing price of the Company’s stock on the date of the grant. Refer to Note 12, “Share-Based Compensation”, of these Consolidated Financial Statements for further discussion regarding the Company’s share-based compensation plans. On April 21, 2016, the Company entered into an Amended and Restated Employment Agreement (the “Amended Employment Agreement”) with Ronald D. Croatti, the Company’s Chairman, Chief Executive Officer and President, which extended the term of Mr. Croatti’s existing Employment Agreement, dated as of April 5, 2010, that expired on April 5, 2016. The Amended Employment Agreement provides for the employment of Mr. Croatti for a term of four years, subject to earlier termination as set forth in the Amended Employment Agreement. Also on April 21, 2016, the Company entered into a Restricted Stock Award Agreement (the “Award Agreement”) with Mr. Croatti pursuant to which the Company granted 140,000 shares (the “Performance Restricted Shares”) of restricted Common Stock to Mr. Croatti, of which all remain unvested as of August 27, 2016. The number of Performance Restricted Shares to be earned will depend on whether and the extent to which the Company achieves certain consolidated revenues and adjusted operating margins as set forth in the Award Agreement during certain performance periods set forth in such agreement, including performance periods relating to the second half of fiscal year 2016 and fiscal years 2017 and 2018 (collectively, the “Performance Criteria”). The threshold, target and maximum numbers of Performance Restricted Shares eligible to be earned under the Award Agreement are 100,000, 120,000 and 140,000, respectively. The Performance Restricted Shares earned upon achievement of the Performance Criteria will vest in two equal amounts on the third and fourth anniversaries of the grant date provided that Mr. Croatti continues to be employed by the Company on each such date. In the event that Mr. Croatti’s employment is terminated without cause or by reason of death or disability prior to the vesting of the Performance Restricted Shares, all of the Performance Restricted Shares that have been or will be earned upon achievement of the Performance Criteria through the end of the fiscal year during which such termination occurred will become fully vested . The fair value of each Share-Based Award is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used: Fiscal year ended August 2016 2015 2014 Risk-free interest rate 1.76 % 1.92 % 1.90 % Expected dividend yield 0.25 % 0.27 % 0.27 % Expected life in years 7.40 7.44 7.45 Expected volatility 29.3 % 32.2 % 32.9 % The weighted average fair values of Share-Based Awards granted during fiscal years 2016, 2015 and 2014 were $35.81, $40.06 and $39.08, respectively. |
Earnings Per Share, Policy [Policy Text Block] | Net Income Per Share The Company calculates net income per share in accordance with US GAAP, which requires the Company to allocate income to its unvested participating securities as part of its earnings per share (“EPS”) calculations. The Class B Common Stock may be converted at any time on a one-for-one basis into Common Stock at the option of the holder of the Class B Common Stock. Diluted earnings per share for the Company’s Common Stock assumes the conversion of all of the Company’s Class B Common Stock into Common Stock, full vesting of outstanding restricted stock, and the exercise of Share-Based Awards under the Company’s stock incentive plans. The following table sets forth the computation of basic earnings per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data): Year ended August 27, 2016 August 29, 2015 August 30, 2014 Net income available to shareholders $ 125,026 $ 124,299 $ 119,925 Allocation of net income for Basic: Common Stock $ 99,282 $ 98,665 $ 94,849 Class B Common Stock 25,093 24,761 23,705 Unvested participating shares 651 873 1,371 $ 125,026 $ 124,299 $ 119,925 Weighted average number of shares for Basic: Common Stock 15,245 15,182 15,080 Class B Common Stock 4,816 4,763 4,711 Unvested participating shares 107 153 249 20,168 20,098 20,040 Earnings per share for Basic: Common Stock $ 6.51 $ 6.50 $ 6.29 Class B Common Stock $ 5.21 $ 5.20 $ 5.03 The Company calculates diluted EPS for Common Stock using the more dilutive of the following two methods: • The treasury stock method; or • The two-class method assuming a participating security is not exercised or converted. For the years ended August 27, 2016, August 29, 2015 and August 30, 2014, the Company’s diluted EPS assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares as it was the more dilutive of the two approaches. The following presents a reconciliation of basic and diluted net income per share (in thousands, except per share data): Year Ended August 27, 2016 Year Ended August 29, 2015 Year Ended August 30, 2014 Earnings Earnings Earnings to Common Common to Common Common to Common Common shareholders Shares EPS shareholders Shares EPS shareholders Shares EPS As reported – Basic $ 99,282 15,245 $ 6.51 98,665 15,182 $ 6.50 $ 94,849 15,080 $ 6.29 Add: effect of dilutive potential common shares Share-Based Awards — 93 — 134 — 148 Class B Common Stock 25,093 4,816 24,761 4,763 23,705 4,711 Add: Undistributed earnings allocated to unvested participating shares 636 — 853 — 1,339 — Less: Undistributed earnings reallocated to unvested participating shares (602 ) — (807 ) — (1,267 ) — Diluted EPS – Common Stock $ 124,409 20,154 $ 6.17 123,472 20,079 $ 6.15 $ 118,626 19,939 $ 5.95 Share-Based Awards that would result in the issuance of 9,883 shares of Common Stock were excluded from the calculation of diluted earnings per share for the year ended August 27, 2016 because they were anti-dilutive. Share-Based Awards that would result in the issuance of 10,702 shares of Common Stock were excluded from the calculation of diluted earnings per share for the year ended August 29, 2015 because they were anti-dilutive. Share-Based Awards that would result in the issuance of 185 shares of Common Stock were excluded from the calculation of diluted earnings per share for the year ended August 30, 2014 because they were anti-dilutive. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The functional currency of our foreign operations is the local country’s currency. Transaction gains and losses, including gains and losses on our intercompany transactions, are included in other (income) expense in the accompanying Consolidated Statements of Income. Assets and liabilities of operations outside the United States are translated into U.S. dollars using period-end exchange rates. Revenues and expenses are translated at the average exchange rates in effect during each month of the fiscal year. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive (loss) income in the accompanying Consolidated Balance Sheets. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the FASB issued updated accounting guidance for revenue recognition, which they have subsequently modified. This modified update provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017 and will be required to be applied retrospectively, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company is currently evaluating the adoption method it will apply and the impact that this guidance will have on its financial statements and related disclosures. In February 2015, the FASB issued updated accounting guidance on consolidation requirements. This update changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Accordingly, the standard became effective for the Company on August 28, 2016. The Company expects that adoption of this guidance will not have a material impact on its financial statements. In April 2015, the FASB issued updated guidance on the presentation of debt issuance costs. This update changes the guidance with respect to presenting such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. Accordingly, the standard became effective for the Company on August 28, 2016. The Company expects that adoption of this guidance will not have a material impact on its financial statements. In July 2015, the FASB issued updated guidance which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, and is to be applied prospectively, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 27, 2017. The Company expects that adoption of this guidance will not have a material impact on its financial statements. In September 2015, the FASB issued updated guidance that require an entity to recognize adjustments made to provisional amounts that are identified in a business combination be recorded in the period such adjustments are determined, rather than retrospectively adjusting previously reported amounts. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, and is to be applied prospectively, with early adoption permitted. Accordingly, the standard became effective for the Company on August 28, 2016. The Company expects that adoption of this guidance will not have a material impact on its financial statements. In November 2015, the FASB issued updated guidance on the presentation of deferred income taxes. This update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016 and is to be applied prospectively, and may also be applied retrospectively to all periods presented, with early adoption permitted. We adopted this standard prospectively on February 27, 2016 , and prior periods were not retroactively adjusted. In January 2016, the FASB issued updated guidance for the recognition, measurement, presentation, and disclosure of certain financial assets and liabilities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Accordingly, the standard will be effective for us on August 26, 2018. We expect that adoption of this guidance will not have a material impact on our financial statements. In February 2016, the FASB issued updated guidance that improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Accordingly, the standard will be effective for us on September 1, 2019. We are currently evaluating the impact that this guidance will have on our financial statements and related disclosures. In March 2016, the FASB issued updated guidance that simplifies several aspects of accounting for share-based payment transactions. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016 and, depending on the amendment, must be applied using a prospective transition method, retrospective transition method, modified retrospective transition method, prospectively and/or retroactively, with early adoption permitted. Accordingly, the standard will be effective for us on August 27, 2017. We are currently evaluating the impact that this guidance will have on our financial statements and related disclosures. |
Note 1 - Summary of Significa27
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | August 27, 2016 August 29, 2015 Raw materials $ 16,826 $ 17,658 Work in process 2,275 2,415 Finished goods 59,786 60,376 Total inventory $ 78,887 $ 80,449 |
Property, Plant and Equipment [Table Text Block] | August 27, 2016 August 29, 2015 Land, buildings and leasehold equipment $ 432,716 $ 402,781 Machinery and equipment 569,627 535,698 Motor vehicles 198,770 193,643 1,201,113 1,132,122 Less: accumulated depreciation 661,295 618,269 Total property, plant and equipment $ 539,818 $ 513,853 |
Useful Life of Property, Plant and Equipment [Table Text Block] | Buildings (in years) 30 - 40 Building components (in years) 10 - 20 Leasehold improvements Shorter of useful life or term of lease Machinery and equipment (in years) 3 - 10 Motor vehicles (in years) 3 - 5 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Fiscal year ended August 2016 2015 2014 Risk-free interest rate 1.76 % 1.92 % 1.90 % Expected dividend yield 0.25 % 0.27 % 0.27 % Expected life in years 7.40 7.44 7.45 Expected volatility 29.3 % 32.2 % 32.9 % |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | Year ended August 27, 2016 August 29, 2015 August 30, 2014 Net income available to shareholders $ 125,026 $ 124,299 $ 119,925 Allocation of net income for Basic: Common Stock $ 99,282 $ 98,665 $ 94,849 Class B Common Stock 25,093 24,761 23,705 Unvested participating shares 651 873 1,371 $ 125,026 $ 124,299 $ 119,925 Weighted average number of shares for Basic: Common Stock 15,245 15,182 15,080 Class B Common Stock 4,816 4,763 4,711 Unvested participating shares 107 153 249 20,168 20,098 20,040 Earnings per share for Basic: Common Stock $ 6.51 $ 6.50 $ 6.29 Class B Common Stock $ 5.21 $ 5.20 $ 5.03 |
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block] | Year Ended August 27, 2016 Year Ended August 29, 2015 Year Ended August 30, 2014 Earnings Earnings Earnings to Common Common to Common Common to Common Common shareholders Shares EPS shareholders Shares EPS shareholders Shares EPS As reported – Basic $ 99,282 15,245 $ 6.51 98,665 15,182 $ 6.50 $ 94,849 15,080 $ 6.29 Add: effect of dilutive potential common shares Share-Based Awards — 93 — 134 — 148 Class B Common Stock 25,093 4,816 24,761 4,763 23,705 4,711 Add: Undistributed earnings allocated to unvested participating shares 636 — 853 — 1,339 — Less: Undistributed earnings reallocated to unvested participating shares (602 ) — (807 ) — (1,267 ) — Diluted EPS – Common Stock $ 124,409 20,154 $ 6.17 123,472 20,079 $ 6.15 $ 118,626 19,939 $ 5.95 |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Year ended August 27, 2016 August 29, 2015 August 30, 2014 Number of businesses acquired 6 7 7 Tangible assets acquired $ 3,572 $ 4,179 $ 949 Intangible assets and goodwill acquired 14,239 18,190 2,686 Liabilities assumed (80 ) (10 ) — Acquisition of businesses $ 17,731 $ 22,359 $ 3,635 |
Note 3 - Fair Value Measureme29
Note 3 - Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | As of August 27, 2016 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 172,760 $ — $ — $ 172,760 Pension plan assets — 4,753 — 4,753 Foreign currency forward contracts — 188 — 188 Total assets at fair value $ 172,760 $ 4,941 $ — $ 177,701 As of August 29, 2015 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 42,093 $ — $ — $ 42,093 Pension plan assets — 4,757 — 4,757 Foreign currency forward contracts — 524 — 524 Total assets at fair value $ 42,093 $ 5,281 $ — $ 47,374 |
Note 4 - Income Taxes (Tables)
Note 4 - Income Taxes (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended August 27, 2016 August 29, 2015 August 30, 2014 Current: Federal $ 54,654 $ 65,656 $ 54,005 Foreign 1,672 3,350 3,480 State 9,996 11,184 9,216 Total current $ 66,322 $ 80,190 $ 66,701 Deferred: Federal $ 10,803 $ (2,705 ) $ 6,838 Foreign (217 ) 34 59 State 1,437 (550 ) 1,828 Total deferred $ 12,023 $ (3,221 ) $ 8,725 Total $ 78,345 $ 76,969 $ 75,426 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | August 27, 2016 August 29, 2015 August 30, 2014 Income taxes at the statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes 3.5 3.5 3.8 Adjustments to tax reserves 0.2 0.1 0.1 Foreign tax rate differential -0.4 -0.7 -0.5 Permanent and other 0.2 0.3 0.2 Total 38.5 % 38.2 % 38.6 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | August 27, 2016 August 29, 2015 Deferred Tax Assets Payroll and benefit related $ 25,091 $ 22,533 Insurance related 14,404 14,565 Environmental 10,465 9,119 Other 10,320 10,438 Total deferred tax assets $ 60,280 $ 56,655 Deferred Tax Liabilities Tax in excess of book depreciation $ 48,414 $ 36,888 Purchased intangible assets 35,697 33,428 Rental merchandise in service 51,869 51,772 Total deferred tax liabilities 135,980 122,088 Net deferred tax liability $ 75,700 $ 65,433 |
Summary of Income Tax Contingencies [Table Text Block] | Balance at August 30, 2014 $ 1,170 Additions based on tax positions related to the current year 395 Statute expirations (253 ) Balance at August 29, 2015 $ 1,312 Additions based on tax positions related to the current year 424 Additions for tax positions of prior years 2,145 Statute expirations (138 ) Balance at August 27, 2016 $ 3,743 |
Note 7 - Employee Benefit Pla31
Note 7 - Employee Benefit Plans (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Pension Plans SERP 2016 2015 2014 2016 2015 2014 Service cost $ 204 $ 192 $ 172 $ 819 $ 821 $ 615 Interest cost 307 294 328 984 1,133 942 Expected return on assets (177 ) (182 ) (183 ) — — — Amortization of prior service cost 84 62 62 368 368 368 Amortization of unrecognized loss 105 152 113 274 461 151 Other events 43 174 72 — — — Net periodic benefit cost $ 566 $ 692 $ 564 $ 2,445 $ 2,783 $ 2,076 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | Pension Plans SERP 2016 2015 2016 2015 Change in benefit obligation: Projected benefit obligation, beginning of year $ 8,479 $ 8,755 $ 23,755 $ 21,284 Service cost 204 192 819 821 Interest cost 307 294 984 1,133 Amendments — 263 — — Actuarial loss (gain) 506 (228 ) 5,568 290 Benefits paid (370 ) (314 ) (430 ) (243 ) Settlements (126 ) (483 ) — — Projected benefit obligation, end of year $ 9,000 $ 8,479 $ 30,696 $ 23,285 Change in plan assets: Fair value of plan assets, beginning of year $ 4,757 $ 5,008 $ — $ — Actual return on plan assets 71 153 — — Employer contributions 420 394 — — Benefits paid (370 ) (314 ) — — Settlements (125 ) (484 ) — — Fair value of plan assets, end of year $ 4,753 $ 4,757 $ — $ — Funded status (net amount recognized): $ (4,247 ) $ (3,722 ) $ (30,696 ) $ (23,285 ) |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | Pension Plans SERP 2016 2015 2016 2015 Deferred tax assets $ 1,119 $ 988 $ 4,046 $ 1,975 Accrued liabilities $ 4,247 $ 3,722 $ 30,696 $ 23,285 Accumulated other comprehensive loss $ (1,788 ) $ (1,538 ) $ (6,463 ) $ (3,181 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Pension Plans SERP 2016 2015 2016 2015 Net actuarial loss $ (1,497 ) $ (1,199 ) $ (6,429 ) $ (2,918 ) Unrecognized prior service cost (291 ) (339 ) (34 ) (263 ) Accumulated other comprehensive loss $ (1,788 ) $ (1,538 ) $ (6,463 ) $ (3,181 ) |
Schedule of Assumptions Used [Table Text Block] | Pension Plans SERP 2016 2015 2016 2015 Discount rate 2.9 % 3.8 % 3.3 % 4.1 % Rate of compensation increase N/A N/A 5.0 % 5.0 % |
Schedule of Assumptions Used in Calculating Net Periodic Service Cost [Table Text Block] | Pension Plans SERP 2016 2015 2014 2016 2015 2014 Discount rate 3.8 % 3.6 % 4.3 % 4.2 % 3.8 % 4.6 % Expected return on plan assets 3.9 % 3.9 % 4.0 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 5.0 % 5.0 % 5.0 % |
Schedule of Expected Benefit Payments [Table Text Block] | Pension Plans SERP 2017 $ 890 $ 978 2018 387 1,036 2019 756 1,038 2020 574 1,098 2021 420 1,308 Thereafter 5,973 25,238 Total benefit payments $ 9,000 $ 30,696 |
Note 8 - Goodwill and Other I32
Note 8 - Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Year ended August 27, 2016 Weighted Average Life in Years August 29, 2015 Weighted Average Life in Years Goodwill $ 7,481 N/A $ 10,272 N/A Customer contracts 6,088 14.8 6,199 14.9 Other intangible assets 670 5.3 1,603 5.3 Total intangible assets and goodwill acquired $ 14,239 $ 18,074 |
Schedule of Goodwill [Table Text Block] | Balance as of August 30, 2014 $ 303,648 Goodwill recorded during the period 10,272 Other (787 ) Balance as of August 29, 2015 $ 313,133 Goodwill recorded during the period 7,481 Other 27 Balance as of August 27, 2016 $ 320,641 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Gross Carrying Amount Accumulated Amortization Net Carrying Amount August 27, 2016 Customer contracts $ 165,405 $ 129,551 $ 35,854 Other intangible assets 31,382 28,572 2,810 $ 196,787 $ 158,123 $ 38,664 August 29, 2015 Customer contracts $ 159,451 $ 121,427 $ 38,024 Other intangible assets 29,927 27,902 2,025 $ 189,378 $ 149,329 $ 40,049 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2017 $ 8,940 2018 8,298 2019 5,466 2020 4,795 2021 3,519 Thereafter 7,646 Total estimated amortization expense $ 38,664 |
Note 9 - Accrued Liabilities (T
Note 9 - Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | August 27, 2016 August 29, 2015 Current liabilities: Payroll and benefit related $ 47,423 $ 48,932 Insurance related 25,612 40,123 Environmental related 9,500 7,254 Asset retirement obligations 1,275 — Other 16,972 16,713 Total current liabilities $ 100,782 $ 113,022 Long-term liabilities: Benefit related $ 33,966 $ 26,132 Environmental related 17,247 16,053 Asset retirement obligations 11,757 12,381 Insurance related 41,951 — Total long-term liabilities $ 104,921 $ 54,566 Total accrued liabilities $ 205,703 $ 167,588 |
Note 10 - Asset Retirement Ob34
Note 10 - Asset Retirement Obligations (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Asset Retirement Obligations [Table Text Block] | August 27, 2016 August 29, 2015 Beginning balance $ 12,381 $ 11,675 Accretion expense 826 690 Effect of exchange rate changes (69 ) (484 ) Asset retirement liabilities settled (500 ) — Change in estimate 394 500 Ending balance $ 13,032 $ 12,381 |
Note 11 - Commitments and Con35
Note 11 - Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2017 $ 8,698 2018 7,168 2019 5,693 2020 4,914 2021 3,822 Thereafter 2,271 Total lease commitments $ 32,566 |
Schedule of Environmental Liabilities [Table Text Block] | Year ended August 27, 2016 August 29, 2015 Beginning balance $ 23,307 $ 19,846 Costs incurred for which reserves have been provided (1,417 ) (2,014 ) Insurance proceeds 101 121 Interest accretion 669 603 Changes in discount rates 1,348 224 Revisions in estimates 2,740 4,527 Ending balance $ 26,748 $ 23,307 |
Schedule of Environmental Remediation Liabilities [Table Text Block] | (In thousands) 2017 2018 2019 2020 2021 Thereafter Total Estimated costs – current dollars $ 9,673 $ 1,859 $ 1,492 $ 1,284 $ 1,172 $ 12,390 $ 27,870 Estimated insurance proceeds (173 ) (159 ) (173 ) (159 ) (173 ) (1,128 ) (1,965 ) Net anticipated costs $ 9,500 $ 1,700 $ 1,319 $ 1,125 $ 999 $ 11,262 $ 25,905 Effect of inflation 7,256 Effect of discounting (6,413 ) Balance as of August 27, 2016 $ 26,748 |
Note 12 - Share-based Compens36
Note 12 - Share-based Compensation (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Compensation Expense For All Share-Based Compensation For Five Fiscal Years [Table Text Block] | Share-Based Awards Restricted Stock Total 2017 $ 2,576 $ 4,101 $ 6,677 2018 2,165 4,214 6,379 2019 1,484 3,380 4,864 2020 652 1,181 1,833 2021 83 — 83 Total $ 6,960 $ 12,876 $ 19,836 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Shares Weighted Average Exercise Price Outstanding, August 29, 2015 645,001 $ 73.72 Granted 95,875 104.55 Exercised (111,935 ) 46.35 Forfeited (18,250 ) 87.35 Outstanding, August 27, 2016 610,691 $ 83.17 Exercisable, August 27, 2016 125,441 $ 64.67 |
Note 14 - Accumulated Other C37
Note 14 - Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of August 30, 2014 $ 2,711 $ (5,244 ) $ — $ (2,533 ) Change during the year (23,134 ) 525 729 (21,880 ) Balance as of August 29, 2015 (20,423 ) (4,719 ) 729 (24,413 ) Change during the year (391 ) (3,532 ) (613 ) (4,536 ) Balance as of August 27, 2016 $ (20,814 ) $ (8,251 ) $ 116 $ (28,949 ) |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Year ended August 27, Year ended August 29, 2016 2015 Pension benefit liabilities, net: Actuarial losses $ 43 (a) 151 (a) Total, net of tax 43 151 Derivative financial instruments, net: Forward contracts (215 )(b) 21 (b) Total, net of tax (215 ) 21 Total amounts reclassified, net of tax (172 ) 172 |
Note 15 - Segment Reporting (Ta
Note 15 - Segment Reporting (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | As of and for the year ended August 27, 2016 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,308,152 $ 189,154 $ (188,904 ) $ 20,973 $ 1,329,375 $ 91,257 $ 47,414 $ 1,468,046 Income (loss) from operations $ 201,148 $ 67,385 $ (711 ) $ (81,748 ) $ 186,074 $ 10,204 $ 4,882 $ 201,160 Interest (income) expense, net $ (3,252 ) $ — $ — $ 709 $ (2,543 ) $ — $ — $ (2,543 ) Income (loss) before taxes $ 204,433 $ 67,407 $ (711 ) $ (82,714 ) $ 188,415 $ 10,074 $ 4,882 $ 203,371 Depreciation and amortization $ 57,062 $ 2,073 $ — $ 16,918 $ 76,053 $ 4,332 $ 1,227 $ 81,612 Capital expenditures $ 91,384 $ 1,598 $ — $ — $ 92,982 $ 4,682 $ 571 $ 98,235 Total assets $ 1,567,943 $ 32,556 $ — $ — $ 1,600,499 $ 77,728 $ 23,780 $ 1,702,007 As of and for the year ended August 29, 2015 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,305,240 $ 192,188 $ (192,188 ) $ 17,088 $ 1,322,328 $ 87,513 $ 46,764 $ 1,456,605 Income (loss) from operations $ 219,430 $ 66,190 $ (733 ) $ (97,301 ) $ 187,586 $ 7,355 $ 5,443 $ 200,384 Interest (income) expense, net $ (3,189 ) $ — $ — $ 752 $ (2,437 ) $ — $ — $ (2,437 ) Income (loss) before taxes $ 222,657 $ 66,355 $ (733 ) $ (98,418 ) $ 189,861 $ 5,964 $ 5,443 $ 201,268 Depreciation and amortization $ 53,811 $ 1,536 $ — $ 16,393 $ 71,740 $ 4,331 $ 1,042 $ 77,113 Capital expenditures $ 93,842 $ 2,618 $ — $ — $ 96,460 $ 3,820 $ 883 $ 101,163 Total assets $ 1,401,346 $ 34,075 $ — $ — $ 1,435,421 $ 74,449 $ 23,367 $ 1,533,237 As of and for the year ended August 30, 2014 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,244,408 $ 183,340 $ (183,340 ) $ 15,077 $ 1,259,485 $ 91,484 $ 43,928 $ 1,394,897 Income (loss) from operations $ 209,497 $ 63,675 $ (3,777 ) $ (87,145 ) $ 182,250 $ 7,178 $ 3,847 $ 193,275 Interest (income) expense, net $ (3,077 ) $ — $ — $ 718 $ (2,359 ) $ — $ — $ (2,359 ) Income (loss) before taxes $ 212,551 $ 63,540 $ (3,777 ) $ (87,897 ) $ 184,417 $ 7,087 $ 3,847 $ 195,351 Depreciation and amortization $ 49,116 $ 1,306 $ — $ 15,751 $ 66,173 $ 4,646 $ 933 $ 71,752 Capital expenditures $ 86,430 $ 2,264 $ — $ — $ 88,694 $ 1,847 $ 1,267 $ 91,808 Total assets $ 1,286,984 $ 38,066 $ — $ — $ 1,325,050 $ 77,037 $ 22,074 $ 1,424,161 |
Long-lived Assets by Geographic Areas [Table Text Block] | Long-lived assets as of: August 27, 2016 August 29, 2015 United States $ 880,666 $ 831,295 Europe, Canada, Mexico and Nicaragua (1) 43,727 40,119 Total $ 924,393 $ 871,414 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Revenues for the year ended: August 27, 2016 August 29, 2015 August 30, 2014 United States $ 1,352,101 $ 1,333,864 $ 1,258,609 Europe and Canada (1) 115,945 122,741 136,288 Total $ 1,468,046 $ 1,456,605 $ 1,394,897 Income before income taxes for the year ended: August 27, 2016 August 29, 2015 August 30, 2014 United States $ 197,441 $ 188,704 $ 182,354 Europe, Canada, Mexico and Nicaragua (1) 5,930 12,564 12,997 Total $ 203,371 $ 201,268 $ 195,351 |
Quarterly Financial Data (Una39
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | (In thousands, except per share data) For the year ended August 27, 2016 First Quarter Second Quarter Third Quarter Fourth(1) Quarter Revenues $ 373,384 $ 363,097 $ 367,799 $ 363,766 Income before income taxes 58,358 38,999 48,699 57,315 Provision for income taxes 22,468 15,501 18,555 21,821 Net income $ 35,890 $ 23,498 $ 30,144 $ 35,494 Income per share – basic Common Stock $ 1.88 $ 1.23 $ 1.57 $ 1.84 Class B Common Stock $ 1.50 $ 0.98 $ 1.26 $ 1.47 Income per share – diluted Common Stock $ 1.78 $ 1.16 $ 1.49 $ 1.74 Income allocated to – basic Common Stock $ 28,539 $ 18,691 $ 23,939 $ 28,097 Class B Common Stock $ 7,193 $ 4,704 $ 6,061 $ 7,139 Income allocated to – diluted Common Stock $ 35,741 $ 23,401 $ 30,007 $ 35,250 Weighted average number of shares outstanding – basic Common Stock 15,218 15,241 15,253 15,268 Class B Common Stock 4,795 4,795 4,827 4,850 Weighted average number of shares outstanding – diluted Common Stock 20,132 20,138 20,183 20,223 (In thousands, except per share data) For the year ended August 29, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Revenues $ 370,361 $ 361,462 $ 365,574 $ 359,208 Income before income taxes 60,834 41,376 52,843 46,215 Provision for income taxes 23,421 15,930 20,344 17,274 Net income $ 37,413 $ 25,446 $ 32,499 $ 28,941 Income per share – basic Common Stock $ 1.96 $ 1.33 $ 1.70 $ 1.51 Class B Common Stock $ 1.57 $ 1.06 $ 1.36 $ 1.21 Income per share – diluted Common Stock $ 1.85 $ 1.26 $ 1.61 $ 1.43 Income allocated to – basic Common Stock $ 29,649 $ 20,182 $ 25,817 $ 23,011 Class B Common Stock $ 7,434 $ 5,041 $ 6,483 $ 5,803 Income allocated to – diluted Common Stock $ 37,101 $ 25,235 $ 32,310 $ 28,821 Weighted average number of shares outstanding – basic Common Stock 15,128 15,185 15,207 15,210 Class B Common Stock 4,741 4,741 4,773 4,795 Weighted average number of shares outstanding – diluted Common Stock 20,008 20,065 20,118 20,142 |
Schedule II - Valuation and Q40
Schedule II - Valuation and Qualifying Accounts and Reserves (Tables) | 12 Months Ended |
Aug. 27, 2016 | |
Notes Tables | |
Valuation Allowances and Reserves [Table Text Block] | Description Balance, Beginning of Period Charged to Costs and Expenses Charges for Which Reserves Were Created or Deductions Balance, End of Period Reserves for Accounts Receivable For the year ended August 27, 2016 $ 6,007 $ 6,375 $ (4,707 ) $ 7,675 For the year ended August 29, 2015 $ 5,114 $ 5,098 $ (4,205 ) $ 6,007 For the year ended August 30, 2014 $ 4,894 $ 4,378 $ (4,158 ) $ 5,114 Reserve for Obsolete Inventory For the year ended August 27, 2016 $ 2,614 $ 1,824 $ (1,908 ) $ 2,530 For the year ended August 29, 2015 $ 1,913 $ 2,060 $ (1,359 ) $ 2,614 For the year ended August 30, 2014 $ 2,018 $ 535 $ (640 ) $ 1,913 |
Note 1 - Summary of Significa41
Note 1 - Summary of Significant Accounting Policies (Details Textual) | Apr. 21, 2016shares | Oct. 27, 2014shares | Aug. 27, 2016USD ($)$ / sharesshares | Aug. 29, 2015USD ($)$ / sharesshares | Aug. 30, 2014USD ($)$ / sharesshares | Aug. 29, 2009 | Oct. 30, 2010shares | Nov. 30, 1996shares |
Machinery and Equipment [Member] | ||||||||
Capitalized Computer Software, Gross | $ | $ 47,900,000 | |||||||
Customer Contracts [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years 292 days | |||||||
Other Intangible Assets [Member] | ||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years 109 days | |||||||
Minimum [Member] | ||||||||
Credit Adjusted Risk Free Rate | 7.00% | |||||||
Maximum [Member] | ||||||||
Credit Adjusted Risk Free Rate | 7.50% | |||||||
Conversion of Class B Common Stock in to Common Stock [Member] | ||||||||
Common Stock Conversion Ratio | 1 | |||||||
The 1996 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | |||||||
The 2010 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 600,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 750,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 787,010 | |||||||
Non-employee Director Share-based Award Grants Prior to Fiscal 2009 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 8 years | 10 years | ||||||
Certain Share-based Awards Granted During Fiscal 2014, 2013 and 2012 to Non-employee Directors [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 8 years | |||||||
Restricted Shares Vesting for Threshold Performance [Member] | Chief Executive Officer [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 100,000 | |||||||
Restricted Shares Vesting for Target Performance [Member] | Chief Executive Officer [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 120,000 | |||||||
Restricted Shares Vesting for Exceeding Target Performance [Member] | Chief Executive Officer [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 140,000 | |||||||
Chief Executive Officer [Member] | Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 140,000 | |||||||
Impairment of Long-Lived Assets Held-for-use | $ | $ 0 | $ 0 | $ 0 | |||||
Number of Reportable Segments | 5 | |||||||
Rental Merchandise Useful Life, Minimum | 180 days | |||||||
Rental Merchandise Useful Life, Maximum | 3 years | |||||||
Goodwill and Intangible Asset Impairment | $ | $ 0 | 0 | 0 | |||||
Finite-Lived Intangible Asset, Useful Life | 14 years 36 days | |||||||
Site Contingency Discount Rate, Lower Range | 1.60% | |||||||
Site Contingency Discount Rate, Upper Range | 2.30% | |||||||
Site Contingency Discounted Period, Lower Range | 10 years | |||||||
Site Contingency Discounted Period, Upper Range | 30 years | |||||||
Environmental Contingencies Inflation Rate | 3.00% | |||||||
Range of Years Discount for Estimated Future Costs to Decommission Its Nuclear Laundry Facilities, MinimumYears | 1 year | |||||||
Range of Years Discount for Estimated Future Costs to Decommission Its Nuclear Laundry Facilities, MaximumYears | 28 years | |||||||
Undistributed Earnings of Foreign Subsidiaries | $ | $ 124,800,000 | |||||||
Advertising Expense | $ | $ 1,500,000 | $ 1,300,000 | $ 1,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 35.81 | $ 40.06 | $ 39.08 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 9,883 | 10,702 | 185 |
Note 1 - Components of Inventor
Note 1 - Components of Inventory (Details) - USD ($) | Aug. 27, 2016 | Aug. 29, 2015 | |
Raw materials | $ 16,826,000 | $ 17,658,000 | |
Work in process | 2,275,000 | 2,415,000 | |
Finished goods | 59,786,000 | 60,376,000 | |
Total inventory | $ 78,887,000 | [1] | $ 80,449,000 |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 1 - Components of Property
Note 1 - Components of Property, Plant and Equipment (Details) - USD ($) | Aug. 27, 2016 | Aug. 29, 2015 | |
Land, Building and Leasehold Equipment [Member] | |||
Property, Plant and Equipment, Gross | $ 432,716,000 | $ 402,781,000 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment, Gross | 569,627,000 | 535,698,000 | |
Vehicles [Member] | |||
Property, Plant and Equipment, Gross | 198,770,000 | 193,643,000 | |
Property, Plant and Equipment, Gross | 1,201,113,000 | 1,132,122,000 | |
Less: accumulated depreciation | 661,295,000 | 618,269,000 | |
Total property, plant and equipment | $ 539,818,000 | [1] | $ 513,853,000 |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 1 - Estimated Useful Lives
Note 1 - Estimated Useful Lives of Property, Plant, and Equipment (Details) | 12 Months Ended |
Aug. 27, 2016 | |
Building [Member] | Minimum [Member] | |
Property and equipment, useful life | 30 years |
Building [Member] | Maximum [Member] | |
Property and equipment, useful life | 40 years |
Building Components [Member] | Minimum [Member] | |
Property and equipment, useful life | 10 years |
Building Components [Member] | Maximum [Member] | |
Property and equipment, useful life | 20 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property and equipment, useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property and equipment, useful life | 10 years |
Vehicles [Member] | Minimum [Member] | |
Property and equipment, useful life | 3 years |
Vehicles [Member] | Maximum [Member] | |
Property and equipment, useful life | 5 years |
Note 1 - Stock Options, Valuati
Note 1 - Stock Options, Valuation Assumptions (Details) | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Risk-free interest rate | 1.76% | 1.92% | 1.90% |
Expected dividend yield | 0.25% | 0.27% | 0.27% |
Expected life in years | 7 years 146 days | 7 years 160 days | 7 years 164 days |
Expected volatility | 29.30% | 32.20% | 32.90% |
Note 1 - Summary of Earnings Pe
Note 1 - Summary of Earnings Per Share, Basic, Two Class Method (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 27, 2016 | [1] | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Common Class A [Member] | ||||||||||||
Income allocated to – Basic: | ||||||||||||
Allocation of net income for Basic | $ 28,097,000 | $ 23,939,000 | $ 18,691,000 | $ 28,539,000 | $ 23,011,000 | $ 25,817,000 | $ 20,182,000 | $ 29,649,000 | $ 99,282,000 | $ 98,665,000 | $ 94,849,000 | |
Weighted average number of shares outstanding – Basic: | ||||||||||||
Weighted average number of shares for Basic (in shares) | 15,245 | 15,182 | 15,080 | |||||||||
Earnings per share for Basic: | ||||||||||||
Earnings per share for Basic (in dollars per share) | $ 1.84 | $ 1.57 | $ 1.23 | $ 1.88 | $ 1.51 | $ 1.70 | $ 1.33 | $ 1.96 | $ 6.51 | $ 6.50 | $ 6.29 | |
Common Class B [Member] | ||||||||||||
Income allocated to – Basic: | ||||||||||||
Allocation of net income for Basic | $ 7,139,000 | $ 6,061,000 | $ 4,704,000 | $ 7,193,000 | $ 5,803,000 | $ 6,483,000 | $ 5,041,000 | $ 7,434,000 | $ 25,093,000 | $ 24,761,000 | $ 23,705,000 | |
Weighted average number of shares outstanding – Basic: | ||||||||||||
Weighted average number of shares for Basic (in shares) | 4,816 | 4,763 | 4,711 | |||||||||
Earnings per share for Basic: | ||||||||||||
Earnings per share for Basic (in dollars per share) | $ 1.47 | $ 1.26 | $ 0.98 | $ 1.50 | $ 1.21 | $ 1.36 | $ 1.06 | $ 1.57 | $ 5.21 | $ 5.20 | $ 5.03 | |
Unvested Participating Shares [Member] | ||||||||||||
Income allocated to – Basic: | ||||||||||||
Allocation of net income for Basic | $ 651,000 | $ 873,000 | $ 1,371,000 | |||||||||
Weighted average number of shares outstanding – Basic: | ||||||||||||
Weighted average number of shares for Basic (in shares) | 107 | 153 | 249 | |||||||||
Net income | $ 35,494,000 | $ 30,144,000 | $ 23,498,000 | $ 35,890,000 | $ 28,941,000 | $ 32,499,000 | $ 25,446,000 | $ 37,413,000 | $ 125,026,000 | $ 124,299,000 | $ 119,925,000 | |
Net income | $ 35,494,000 | $ 30,144,000 | $ 23,498,000 | $ 35,890,000 | $ 28,941,000 | $ 32,499,000 | $ 25,446,000 | $ 37,413,000 | $ 125,026,000 | $ 124,299,000 | $ 119,925,000 | |
Weighted average number of shares for Basic (in shares) | 20,168 | 20,098 | 20,040 | |||||||||
[1] | In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain translated into a $0.48 benefit to the Company's diluted earnings per share. |
Note 1 - Summary of Earnings 47
Note 1 - Summary of Earnings Per Share, Diluted, Two Class Method (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 27, 2016 | [1] | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Common Class A [Member] | ||||||||||||
Allocation of net income for Basic | $ 28,097 | $ 23,939 | $ 18,691 | $ 28,539 | $ 23,011 | $ 25,817 | $ 20,182 | $ 29,649 | $ 99,282 | $ 98,665 | $ 94,849 | |
As reported - Basic (in shares) | 15,268 | 15,253 | 15,241 | 15,218 | 15,210 | 15,207 | 15,185 | 15,128 | 15,245 | 15,182 | 15,080 | |
Earnings per share for Basic (in dollars per share) | $ 1.84 | $ 1.57 | $ 1.23 | $ 1.88 | $ 1.51 | $ 1.70 | $ 1.33 | $ 1.96 | $ 6.51 | $ 6.50 | $ 6.29 | |
Add: effect of dilutive potential common shares | ||||||||||||
Add: effect of dilutive potential common shares (in shares) | 93 | 134 | 148 | |||||||||
Diluted EPS – Common Stock | $ 35,250 | $ 30,007 | $ 23,401 | $ 35,741 | $ 28,821 | $ 32,310 | $ 25,235 | $ 37,101 | $ 124,409 | $ 123,472 | $ 118,626 | |
Diluted EPS – Common Stock (in shares) | 20,223 | 20,183 | 20,138 | 20,132 | 20,142 | 20,118 | 20,065 | 20,008 | 20,154 | 20,079 | 19,939 | |
Diluted EPS – Common Stock (in dollars per share) | $ 1.74 | $ 1.49 | $ 1.16 | $ 1.78 | $ 1.43 | $ 1.61 | $ 1.26 | $ 1.85 | $ 6.17 | $ 6.15 | $ 5.95 | |
Common Class B [Member] | ||||||||||||
Allocation of net income for Basic | $ 7,139 | $ 6,061 | $ 4,704 | $ 7,193 | $ 5,803 | $ 6,483 | $ 5,041 | $ 7,434 | $ 25,093 | $ 24,761 | $ 23,705 | |
As reported - Basic (in shares) | 4,850 | 4,827 | 4,795 | 4,795 | 4,795 | 4,773 | 4,741 | 4,741 | 4,816 | 4,763 | 4,711 | |
Earnings per share for Basic (in dollars per share) | $ 1.47 | $ 1.26 | $ 0.98 | $ 1.50 | $ 1.21 | $ 1.36 | $ 1.06 | $ 1.57 | $ 5.21 | $ 5.20 | $ 5.03 | |
Add: effect of dilutive potential common shares | $ 25,093 | $ 24,761 | $ 23,705 | |||||||||
Add: effect of dilutive potential common shares (in shares) | 4,816 | 4,763 | 4,711 | |||||||||
Add: Undistributed earnings allocated to unvested participating shares | $ 636 | $ 853 | $ 1,339 | |||||||||
Less: Undistributed earnings reallocated to unvested participating shares | (602) | (807) | (1,267) | |||||||||
Diluted EPS – Common Stock | $ 124,409 | $ 123,472 | $ 118,626 | |||||||||
Diluted EPS – Common Stock (in shares) | 20,154 | 20,079 | 19,939 | |||||||||
Diluted EPS – Common Stock (in dollars per share) | $ 6.17 | $ 6.15 | $ 5.95 | |||||||||
[1] | In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain translated into a $0.48 benefit to the Company's diluted earnings per share. |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) $ in Thousands | 12 Months Ended | ||
Aug. 27, 2016USD ($) | Aug. 29, 2015USD ($) | Aug. 30, 2014USD ($) | |
Number of Businesses Acquired | 6 | 7 | 7 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 17,731 | $ 22,359 | $ 3,635 |
Note 2 - Acquisitions (Details)
Note 2 - Acquisitions (Details) $ in Thousands | 12 Months Ended | ||
Aug. 27, 2016USD ($) | Aug. 29, 2015USD ($) | Aug. 30, 2014USD ($) | |
Number of businesses acquired | 6 | 7 | 7 |
Tangible assets acquired | $ 3,572 | $ 4,179 | $ 949 |
Intangible assets and goodwill acquired | 14,239 | 18,190 | 2,686 |
Liabilities assumed | (80) | (10) | |
Acquisition of businesses | $ 17,731 | $ 22,359 | $ 3,635 |
Note 3 - Fair Value Measureme50
Note 3 - Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash equivalents | $ 172,760 | $ 42,093 |
Pension plan assets | ||
Foreign currency forward contracts | ||
Total assets at fair value | 172,760 | 42,093 |
Fair Value, Inputs, Level 2 [Member] | ||
Cash equivalents | ||
Pension plan assets | 4,753 | 4,757 |
Foreign currency forward contracts | 188 | 524 |
Total assets at fair value | 4,941 | 5,281 |
Cash equivalents | 172,760 | 42,093 |
Pension plan assets | 4,753 | 4,757 |
Foreign currency forward contracts | 188 | 524 |
Total assets at fair value | $ 177,701 | $ 47,374 |
Note 4 - Income Taxes (Details
Note 4 - Income Taxes (Details Textual) - USD ($) $ in Millions | Aug. 27, 2016 | Aug. 29, 2015 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0.1 | $ 0.1 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 3.3 | $ 0.9 |
Note 4 - Provision for Income T
Note 4 - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 27, 2016 | [1] | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Current: | ||||||||||||
Federal | $ 54,654 | $ 65,656 | $ 54,005 | |||||||||
Foreign | 1,672 | 3,350 | 3,480 | |||||||||
State | 9,996 | 11,184 | 9,216 | |||||||||
Total current | 66,322 | 80,190 | 66,701 | |||||||||
Deferred: | ||||||||||||
Federal | 10,803 | (2,705) | 6,838 | |||||||||
Foreign | (217) | 34 | 59 | |||||||||
State | 1,437 | (550) | 1,828 | |||||||||
Total deferred | 12,023 | (3,221) | 8,725 | |||||||||
Total | $ 21,821 | $ 18,555 | $ 15,501 | $ 22,468 | $ 17,274 | $ 20,344 | $ 15,930 | $ 23,421 | $ 78,345 | $ 76,969 | $ 75,426 | |
[1] | In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain translated into a $0.48 benefit to the Company's diluted earnings per share. |
Note 4 - Reconciliation of Prov
Note 4 - Reconciliation of Provision for Income Taxes (Details) | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Income taxes at the statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes | 3.50% | 3.50% | 3.80% |
Adjustments to tax reserves | 0.20% | 0.10% | 0.10% |
Foreign tax rate differential | (0.40%) | (0.70%) | (0.50%) |
Permanent and other | 0.20% | 0.30% | 0.20% |
Total | 38.50% | 38.20% | 38.60% |
Note 4 - Components of Deferred
Note 4 - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 |
Deferred Tax Assets | ||
Payroll and benefit related | $ 25,091 | $ 22,533 |
Insurance related | 14,404 | 14,565 |
Environmental | 10,465 | 9,119 |
Other | 10,320 | 10,438 |
Total deferred tax assets | 60,280 | 56,655 |
Deferred Tax Liabilities | ||
Tax in excess of book depreciation | 48,414 | 36,888 |
Purchased intangible assets | 35,697 | 33,428 |
Rental merchandise in service | 51,869 | 51,772 |
Total deferred tax liabilities | 135,980 | 122,088 |
Net deferred tax liability | $ 75,700 | $ 65,433 |
Note 4 - Reconciliation of Unre
Note 4 - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 27, 2016 | Aug. 29, 2015 | |
Balance | $ 1,312 | $ 1,170 |
Additions based on tax positions related to the current year | 424 | 395 |
Statute expirations | (138) | (253) |
Balance | 3,743 | $ 1,312 |
Additions for tax positions of prior years | $ 2,145 |
Note 5 - Loans Payable and Lo56
Note 5 - Loans Payable and Long-term Debt (Details Textual) - USD ($) | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||
Debt Instrument, Maturity Date | Apr. 11, 2021 | ||
Long-term Line of Credit | $ 0 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 250,000,000 | ||
Letters of Credit Outstanding, Amount | 53,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 197,000,000 | ||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Loans Payable, Current | $ 0 | [1] | $ 1,385,000 |
Letters of Credit Outstanding, Amount | $ 53,000,000 | $ 52,900,000 | |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 6 - Derivative Instrumen57
Note 6 - Derivative Instruments and Hedging Activities (Details Textual) CAD in Millions | 12 Months Ended | ||||||
Aug. 27, 2016USD ($) | Aug. 29, 2015USD ($) | Aug. 30, 2014USD ($) | Aug. 27, 2016CAD | Aug. 27, 2016USD ($) | Jan. 31, 2015CADRate | ||
Forward Contracts [Member] | Other Noncurrent Assets [Member] | |||||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 100,000 | ||||||
Forward Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | |||||||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 100,000 | ||||||
Forward Contracts [Member] | |||||||
Derivative, Number of Instruments Held | 16 | ||||||
Derivative, Notional Amount | CAD | CAD 17.1 | CAD 31 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 100,000 | ||||||
Canada, Dollars | |||||||
Derivative, Forward Exchange Rate | Rate | 78.25% | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (24,413,000) | $ (2,533,000) | $ (28,949,000) | [1] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | $ 215,000 | $ (21,000) | |||||
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 7 - Employee Benefit Pla58
Note 7 - Employee Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
UniFirst Plan [Member] | |||
Pension Expense | $ 0.4 | $ 0.4 | $ 0.4 |
Defined Benefit Plan, Minimum Annual Interest Rate | 3.25% | ||
Textilease Plan [Member] | |||
Pension Expense | $ 0.2 | 0.3 | 0.2 |
Defined Benefit Plan, Minimum Annual Interest Rate | 1.50% | ||
Pension Plan [Member] | |||
Defined Benefit Plan, Accumulated Benefit Obligation | $ 8.9 | 8.3 | |
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan, Accumulated Benefit Obligation | 30.7 | 18.6 | |
Pension Expense | 2.4 | 2.8 | 2.1 |
Defined Contribution Plan, Cost Recognized | $ 13.8 | $ 15.8 | $ 16.4 |
Note 7 - Components of Net Peri
Note 7 - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Pension Plan [Member] | |||
Service cost | $ 204 | $ 192 | $ 172 |
Interest cost | 307 | 294 | 328 |
Expected return on assets | (177) | (182) | (183) |
Amortization of prior service cost | 84 | 62 | 62 |
Amortization of unrecognized loss | 105 | 152 | 113 |
Other events | 43 | 174 | 72 |
Net periodic benefit cost | 566 | 692 | 564 |
Supplemental Executive Retirement Plan [Member] | |||
Service cost | 819 | 821 | 615 |
Interest cost | 984 | 1,133 | 942 |
Expected return on assets | |||
Amortization of prior service cost | 368 | 368 | 368 |
Amortization of unrecognized loss | 274 | 461 | 151 |
Other events | |||
Net periodic benefit cost | $ 2,445 | $ 2,783 | $ 2,076 |
Note 7 - Obligations and Funded
Note 7 - Obligations and Funded Status Related to Its Pension Plans and SERP (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Pension Plan [Member] | |||
Projected benefit obligation | $ 8,479 | $ 8,755 | |
Service cost | 204 | 192 | $ 172 |
Interest cost | 307 | 294 | 328 |
Amendments | 263 | ||
Actuarial loss (gain) | 506 | (228) | |
Benefits paid | (370) | (314) | |
Settlements | (126) | (483) | |
Projected benefit obligation | 9,000 | 8,479 | 8,755 |
Fair value of plan assets | 4,757 | 5,008 | |
Actual return on plan assets | 71 | 153 | |
Employer contributions | 420 | 394 | |
Settlements | (125) | (484) | |
Fair value of plan assets | 4,753 | 4,757 | 5,008 |
Funded status (net amount recognized): | (4,247) | (3,722) | |
Supplemental Executive Retirement Plan [Member] | |||
Projected benefit obligation | 23,755 | 21,284 | |
Service cost | 819 | 821 | 615 |
Interest cost | 984 | 1,133 | 942 |
Amendments | |||
Actuarial loss (gain) | 5,568 | 290 | |
Benefits paid | (430) | (243) | |
Settlements | |||
Projected benefit obligation | 30,696 | 23,755 | 21,284 |
Fair value of plan assets | |||
Actual return on plan assets | |||
Employer contributions | |||
Settlements | |||
Fair value of plan assets | |||
Funded status (net amount recognized): | $ (30,696) | $ (23,285) |
Note 7 - Amounts Recorded in Co
Note 7 - Amounts Recorded in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 |
Pension Plan [Member] | ||
Deferred tax assets | $ 1,119 | $ 988 |
Accrued liabilities | 4,247 | 3,722 |
Accumulated other comprehensive loss | (1,788) | (1,538) |
Supplemental Executive Retirement Plan [Member] | ||
Deferred tax assets | 4,046 | 1,975 |
Accrued liabilities | 30,696 | 23,285 |
Accumulated other comprehensive loss | $ (6,463) | $ (3,181) |
Note 7 - Amounts Recognized in
Note 7 - Amounts Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 |
Pension Plan [Member] | ||
Net actuarial loss | $ (1,497) | $ (1,199) |
Unrecognized prior service cost | (291) | (339) |
Accumulated other comprehensive loss | (1,788) | (1,538) |
Supplemental Executive Retirement Plan [Member] | ||
Net actuarial loss | (6,429) | (2,918) |
Unrecognized prior service cost | (34) | (263) |
Accumulated other comprehensive loss | $ (6,463) | $ (3,181) |
Note 7 - Weighted Average Assum
Note 7 - Weighted Average Assumptions Used In Calculating the Company's Projected Benefit Obligation (Details) | Aug. 27, 2016 | Aug. 29, 2015 |
Pension Plan [Member] | ||
Discount rate | 2.90% | 3.80% |
Supplemental Executive Retirement Plan [Member] | ||
Discount rate | 3.30% | 4.10% |
Rate of compensation increase | 5.00% | 5.00% |
Note 7 - Weighted Average Ass64
Note 7 - Weighted Average Assumptions Used in Calculating the Company's Net Periodic Service Cost (Details) | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Pension Plan [Member] | |||
Discount rate | 3.80% | 3.60% | 4.30% |
Expected return on plan assets | 3.90% | 3.90% | 4.00% |
Supplemental Employee Retirement Plan [Member] | |||
Discount rate | 4.20% | 3.80% | 4.60% |
Rate of compensation increase | 5.00% | 5.00% | 5.00% |
Note 7 - Expected Benefit Payme
Note 7 - Expected Benefit Payments (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 |
Pension Plan [Member] | |||
2,017 | $ 890 | ||
2,018 | 387 | ||
2,019 | 756 | ||
2,020 | 574 | ||
2,021 | 420 | ||
Thereafter | 5,973 | ||
Total benefit payments | 9,000 | $ 8,479 | $ 8,755 |
Supplemental Executive Retirement Plan [Member] | |||
2,017 | 978 | ||
2,018 | 1,036 | ||
2,019 | 1,038 | ||
2,020 | 1,098 | ||
2,021 | 1,308 | ||
Thereafter | 25,238 | ||
Total benefit payments | $ 30,696 | $ 23,755 | $ 21,284 |
Note 8 - Goodwill and Other I66
Note 8 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | ||
US and Canadian Rental and Cleaning [Member] | ||||
Goodwill | $ 315,900,000 | |||
Specialty Garments [Member] | ||||
Goodwill | 4,100,000 | |||
First Aid [Member] | ||||
Goodwill | 600,000 | |||
Goodwill and Intangible Asset Impairment | 0 | $ 0 | $ 0 | |
Goodwill | $ 320,641,000 | [1] | $ 313,133,000 | $ 303,648,000 |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 8 - Goodwill and Other I67
Note 8 - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 27, 2016 | Aug. 29, 2015 | |
Customer Contracts [Member] | ||
Intangible assets acquired | $ 6,088 | $ 6,199 |
Intangible assets acquired, weighted average life in years | 14 years 292 days | 14 years 328 days |
Other Intangible Assets [Member] | ||
Intangible assets acquired | $ 670 | $ 1,603 |
Intangible assets acquired, weighted average life in years | 5 years 109 days | 5 years 109 days |
Goodwill recorded during the period | $ 7,481 | $ 10,272 |
Total intangible assets and goodwill acquired | $ 14,239 | $ 18,074 |
Note 8 - Summary of Changes in
Note 8 - Summary of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | ||
Balance | $ 313,133 | $ 303,648 | |
Goodwill recorded during the period | 7,481 | 10,272 | |
Other | 27 | (787) | |
Balance | $ 320,641 | [1] | $ 313,133 |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 8 - Summary of Intangible
Note 8 - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 |
Customer Contracts [Member] | ||
Gross Carrying Amount | $ 165,405 | $ 159,451 |
Accumulated Amortization | 129,551 | 121,427 |
Net Carrying Amount | 35,854 | 38,024 |
Other Intangible Assets [Member] | ||
Gross Carrying Amount | 31,382 | 29,927 |
Accumulated Amortization | 28,572 | 27,902 |
Net Carrying Amount | 2,810 | 2,025 |
Gross Carrying Amount | 196,787 | 189,378 |
Accumulated Amortization | 158,123 | 149,329 |
Net Carrying Amount | $ 38,664 | $ 40,049 |
Note 8 - Intangible Assets Esti
Note 8 - Intangible Assets Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 |
2,017 | $ 8,940 | |
2,018 | 8,298 | |
2,019 | 5,466 | |
2,020 | 4,795 | |
2,021 | 3,519 | |
Thereafter | 7,646 | |
Total estimated amortization expense | $ 38,664 | $ 40,049 |
Note 9 - Summary of Current and
Note 9 - Summary of Current and Long-term Accrued Liabilities (Details) - USD ($) | Aug. 27, 2016 | Aug. 29, 2015 | |
Payroll and benefit related | $ 47,423,000 | $ 48,932,000 | |
Insurance related | 25,612,000 | 40,123,000 | |
Environmental related | 9,500,000 | 7,254,000 | |
Asset retirement obligations | 1,275,000 | ||
Other | 16,972,000 | 16,713,000 | |
Total current liabilities | 100,782,000 | [1] | 113,022,000 |
Benefit related | 33,966,000 | 26,132,000 | |
Environmental related | 17,247,000 | 16,053,000 | |
Asset retirement obligations | 11,757,000 | 12,381,000 | |
Insurance related | 41,951,000 | ||
Total long-term liabilities | 104,921,000 | [1] | 54,566,000 |
Total accrued liabilities | $ 205,703,000 | $ 167,588,000 | |
[1] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 10 - Asset Retirement Ob72
Note 10 - Asset Retirement Obligations (Details Textual) | 12 Months Ended |
Aug. 27, 2016 | |
Minimum [Member] | |
Asset Retirement Obligation, Remaining Lives | 1 year |
Maximum [Member] | |
Asset Retirement Obligation, Remaining Lives | 28 years |
Estimated Impact of Inflation per Year | 3.00% |
Credit Adjusted Risk Free Rates, Minimum Rate | 7.00% |
Credit Adjusted Risk Free Rates, Maximum Rate | 7.50% |
Note 10 - Asset Retirement Ob73
Note 10 - Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Beginning balance | $ 12,381,000 | $ 11,675,000 | |
Accretion on asset retirement obligations | 826,000 | 690,000 | $ 941,000 |
Effect of exchange rate changes | (69,000) | (484,000) | |
Asset retirement liabilities settled | (500,000) | ||
Change in estimate | 394,000 | 500,000 | |
Ending balance | $ 13,032,000 | $ 12,381,000 | $ 11,675,000 |
Note 11 - Commitments and Con74
Note 11 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Selling, General and Administrative Expenses [Member] | ||||
Gain (Loss) Related to Litigation Settlement | $ 15.9 | |||
Minimum [Member] | ||||
Risk Free Rates of Interest Used to Discount Remediation Costs | 1.60% | 1.60% | ||
Maximum [Member] | ||||
Risk Free Rates of Interest Used to Discount Remediation Costs | 2.30% | 2.30% | ||
Operating Leases, Rent Expense | $ 10.1 | $ 9.8 | $ 9.9 | |
Number of Sites Related to Former Operations with Environmental Issues | 3 | 3 | ||
Estimated Impact of Inflation per Year | 3.00% | 3.00% | ||
Proceeds from Legal Settlements | $ 0.3 | |||
Escrow Deposit | $ 3.4 | 3.4 | ||
Letters of Credit Outstanding, Amount | $ 53 | $ 53 | $ 52.9 |
Note 11 - Annual Minimum Lease
Note 11 - Annual Minimum Lease Commitments (Details) $ in Thousands | Aug. 27, 2016USD ($) |
2,017 | $ 8,698 |
2,018 | 7,168 |
2,019 | 5,693 |
2,020 | 4,914 |
2,021 | 3,822 |
Thereafter | 2,271 |
Total lease commitments | $ 32,566 |
Note 11 - Changes to Environmen
Note 11 - Changes to Environmental Liabilities (Details) - USD ($) | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Beginning balance | $ 23,307,000 | $ 19,846,000 | |
Costs incurred for which reserves have been provided | (1,417,000) | (2,014,000) | |
Insurance proceeds | 101,000 | 121,000 | |
Accretion on environmental contingencies | 669,000 | 603,000 | $ 716,000 |
Changes in discount rates | 1,348,000 | 224,000 | |
Revisions in estimates | 2,740,000 | 4,527,000 | |
Ending balance | $ 26,748,000 | $ 23,307,000 | $ 19,846,000 |
Note 11 - Anticipated Payments
Note 11 - Anticipated Payments and Insurance Proceeds of Identified Environmental Remediation Liabilities (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 |
Estimated costs – current dollars, year one | $ 9,673 | ||
Estimated costs – current dollars, year two | 1,859 | ||
Estimated costs – current dollars, year three | 1,492 | ||
Estimated costs – current dollars, year four | 1,284 | ||
Estimated costs – current dollars, year five | 1,172 | ||
Estimated costs – current dollars, thereafter | 12,390 | ||
Estimated costs – current dollars, total | 27,870 | ||
Estimated insurance proceeds, year one | (173) | ||
Estimated insurance proceeds, year two | (159) | ||
Estimated insurance proceeds, year three | (173) | ||
Estimated insurance proceeds, year four | (159) | ||
Estimated insurance proceeds, year five | (173) | ||
Estimated insurance proceeds, thereafter | (1,128) | ||
Estimated insurance proceeds, total | (1,965) | ||
Net anticipated costs, , year one | 9,500 | ||
Net anticipated costs, year two | 1,700 | ||
Net anticipated costs, year three | 1,319 | ||
Net anticipated costs, year four | 1,125 | ||
Net anticipated costs, year five | 999 | ||
Net anticipated costs, thereafter | 11,262 | ||
Net anticipated costs, total | 25,905 | ||
Effect of inflation | 7,256 | ||
Effect of discounting | (6,413) | ||
Balance as of August 27, 2016 | $ 26,748 | $ 23,307 | $ 19,846 |
Note 12 - Share-based Compens78
Note 12 - Share-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Apr. 21, 2016 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 |
Unrestricted Stock [Member] | Non-Employee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 885 | 1,096 | 583 | |
Stock Appreciation Rights (SARs) [Member] | Non-Employee Directors [Member] | The 2010 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,675 | 4,875 | 4,700 | |
Performance Restricted Shares [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 140,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period | 4 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Number of Shares Eligible to Be Earned, Threshold | 100,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Target Number of Shares Eligible to Be Earned | 120,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Maximum Number of Shares Eligible to Be Earned | 140,000 | |||
Share Based Awards [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 73 days | |||
Restricted Stock [Member] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 73 days | |||
Share Price | $ 111.13 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 19.8 |
Note 12 - Summary of Compensati
Note 12 - Summary of Compensation Expense for All Share-Based Compensation (Details) $ in Thousands | Aug. 27, 2016USD ($) |
Share Based Awards [Member] | |
2,017 | $ 2,576 |
2,018 | 2,165 |
2,019 | 1,484 |
2,020 | 652 |
2,021 | 83 |
Total | 6,960 |
Restricted Stock [Member] | |
2,017 | 4,101 |
2,018 | 4,214 |
2,019 | 3,380 |
2,020 | 1,181 |
2,021 | |
Total | 12,876 |
2,017 | 6,677 |
2,018 | 6,379 |
2,019 | 4,864 |
2,020 | 1,833 |
2,021 | 83 |
Total | $ 19,836 |
Note 12 - Summary of Share-Base
Note 12 - Summary of Share-Based Activity (Details) | 12 Months Ended |
Aug. 27, 2016$ / sharesshares | |
Outstanding, shares (in shares) | shares | 645,001 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 73.72 |
Granted, shares (in shares) | shares | 95,875 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 104.55 |
Exercised, shares (in shares) | shares | (111,935) |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | $ 46.35 |
Forfeited, shares (in shares) | shares | (18,250) |
Forfeited, weighted average exercise price (in dollars per share) | $ / shares | $ 87.35 |
Outstanding, shares (in shares) | shares | 610,691 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 83.17 |
Exercisable, shares (in shares) | shares | 125,441 |
Exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 64.67 |
Note 13 - Shareholders' Equity
Note 13 - Shareholders' Equity (Details Textual) | 12 Months Ended |
Aug. 27, 2016shares | |
Common Class B [Member] | |
Conversion of Stock, Shares Converted | 0 |
Common Stock, Voting Rights, Number of Votes | 10 |
Common Class A [Member] | |
Common Stock, Voting Rights, Number of Votes | 1 |
Common Stock, Dividend Rate, Percentage | 125.00% |
Note 14 - Components of Accumul
Note 14 - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) | 12 Months Ended | ||||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Balance | $ (20,423,000) | $ 2,711,000 | |||
Change during the year | (391,000) | (23,134,000) | |||
Balance | (20,814,000) | (20,423,000) | $ 2,711,000 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Balance | [1] | (4,719,000) | (5,244,000) | ||
Change during the year | [1] | (3,532,000) | 525,000 | ||
Balance | [1] | (8,251,000) | (4,719,000) | (5,244,000) | |
Derivative [Member] | |||||
Balance | [1] | 729,000 | |||
Change during the year | [1] | (613,000) | 729,000 | ||
Balance | [1] | 116,000 | 729,000 | ||
Balance | (24,413,000) | (2,533,000) | |||
Change during the year | (4,536,000) | (21,880,000) | (3,978,000) | ||
Balance | $ (28,949,000) | [2] | $ (24,413,000) | $ (2,533,000) | |
[1] | Amounts are shown net of tax | ||||
[2] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 14 - Amounts Reclassified
Note 14 - Amounts Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | ||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | |||
Amounts reclassified from accumulated other comprehensive loss | [1] | $ 43 | $ 151 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Amounts reclassified from accumulated other comprehensive loss | 43 | 151 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Amounts reclassified from accumulated other comprehensive loss | (215) | 21 | |
Forward Contracts [Member] | |||
Amounts reclassified from accumulated other comprehensive loss | [2] | (215) | 21 |
Amounts reclassified from accumulated other comprehensive loss | $ (172) | $ 172 | |
[1] | Amounts included in selling and administrative expenses in the accompanying Consolidated Statements of Income. | ||
[2] | Amounts included in revenues in the accompanying Consolidated Statements of Income. |
Note 15 - Segment Reporting (De
Note 15 - Segment Reporting (Details Textual) | 12 Months Ended |
Aug. 27, 2016 | |
Number of Operating Segments | 6 |
Number of Reportable Segments | 5 |
Note 15 - Segment Reporting (85
Note 15 - Segment Reporting (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 27, 2016 | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |||
US and Canadian Rental and Cleaning [Member] | |||||||||||||
Revenues | $ 1,308,152,000 | $ 1,305,240,000 | $ 1,244,408,000 | ||||||||||
Income (loss) from operations | 201,148,000 | 219,430,000 | 209,497,000 | ||||||||||
Interest (income) expense, net | (3,252,000) | (3,189,000) | (3,077,000) | ||||||||||
Income (loss) before taxes | 204,433,000 | 222,657,000 | 212,551,000 | ||||||||||
Depreciation and amortization | 57,062,000 | 53,811,000 | 49,116,000 | ||||||||||
Capital expenditures | 91,384,000 | 93,842,000 | 86,430,000 | ||||||||||
Total assets | $ 1,567,943,000 | $ 1,401,346,000 | 1,567,943,000 | 1,401,346,000 | 1,286,984,000 | ||||||||
MFG [Member] | |||||||||||||
Revenues | 189,154,000 | 192,188,000 | 183,340,000 | ||||||||||
Income (loss) from operations | 67,385,000 | 66,190,000 | 63,675,000 | ||||||||||
Interest (income) expense, net | |||||||||||||
Income (loss) before taxes | 67,407,000 | 66,355,000 | 63,540,000 | ||||||||||
Depreciation and amortization | 2,073,000 | 1,536,000 | 1,306,000 | ||||||||||
Capital expenditures | 1,598,000 | 2,618,000 | 2,264,000 | ||||||||||
Total assets | 32,556,000 | 34,075,000 | 32,556,000 | 34,075,000 | 38,066,000 | ||||||||
Net Interco MFG Elimination [Member] | |||||||||||||
Revenues | (188,904,000) | (192,188,000) | (183,340,000) | ||||||||||
Income (loss) from operations | (711,000) | (733,000) | (3,777,000) | ||||||||||
Interest (income) expense, net | |||||||||||||
Income (loss) before taxes | (711,000) | (733,000) | (3,777,000) | ||||||||||
Depreciation and amortization | |||||||||||||
Capital expenditures | |||||||||||||
Total assets | |||||||||||||
Corporate Segment [Member] | |||||||||||||
Revenues | 20,973,000 | 17,088,000 | 15,077,000 | ||||||||||
Income (loss) from operations | (81,748,000) | (97,301,000) | (87,145,000) | ||||||||||
Interest (income) expense, net | 709,000 | 752,000 | 718,000 | ||||||||||
Income (loss) before taxes | (82,714,000) | (98,418,000) | (87,897,000) | ||||||||||
Depreciation and amortization | 16,918,000 | 16,393,000 | 15,751,000 | ||||||||||
Capital expenditures | |||||||||||||
Total assets | |||||||||||||
Subtotal Core Laundry Operations [Member] | |||||||||||||
Revenues | 1,329,375,000 | 1,322,328,000 | 1,259,485,000 | ||||||||||
Income (loss) from operations | 186,074,000 | 187,586,000 | 182,250,000 | ||||||||||
Interest (income) expense, net | (2,543,000) | (2,437,000) | (2,359,000) | ||||||||||
Income (loss) before taxes | 188,415,000 | 189,861,000 | 184,417,000 | ||||||||||
Depreciation and amortization | 76,053,000 | 71,740,000 | 66,173,000 | ||||||||||
Capital expenditures | 92,982,000 | 96,460,000 | 88,694,000 | ||||||||||
Total assets | 1,600,499,000 | 1,435,421,000 | 1,600,499,000 | 1,435,421,000 | 1,325,050,000 | ||||||||
Specialty Garments [Member] | |||||||||||||
Revenues | 91,257,000 | 87,513,000 | 91,484,000 | ||||||||||
Income (loss) from operations | 10,204,000 | 7,355,000 | 7,178,000 | ||||||||||
Interest (income) expense, net | |||||||||||||
Income (loss) before taxes | 10,074,000 | 5,964,000 | 7,087,000 | ||||||||||
Depreciation and amortization | 4,332,000 | 4,331,000 | 4,646,000 | ||||||||||
Capital expenditures | 4,682,000 | 3,820,000 | 1,847,000 | ||||||||||
Total assets | 77,728,000 | 74,449,000 | 77,728,000 | 74,449,000 | 77,037,000 | ||||||||
First Aid [Member] | |||||||||||||
Revenues | 47,414,000 | 46,764,000 | 43,928,000 | ||||||||||
Income (loss) from operations | 4,882,000 | 5,443,000 | 3,847,000 | ||||||||||
Interest (income) expense, net | |||||||||||||
Income (loss) before taxes | 4,882,000 | 5,443,000 | 3,847,000 | ||||||||||
Depreciation and amortization | 1,227,000 | 1,042,000 | 933,000 | ||||||||||
Capital expenditures | 571,000 | 883,000 | 1,267,000 | ||||||||||
Total assets | 23,780,000 | 23,367,000 | 23,780,000 | 23,367,000 | 22,074,000 | ||||||||
Revenues | 363,766,000 | [1] | $ 367,799,000 | $ 363,097,000 | $ 373,384,000 | 359,208,000 | $ 365,574,000 | $ 361,462,000 | $ 370,361,000 | 1,468,046,000 | 1,456,605,000 | 1,394,897,000 | |
Income (loss) from operations | 201,160,000 | 200,384,000 | 193,275,000 | ||||||||||
Interest (income) expense, net | (2,543,000) | (2,437,000) | (2,359,000) | ||||||||||
Income (loss) before taxes | 203,371,000 | 201,268,000 | 195,351,000 | ||||||||||
Depreciation and amortization | 81,612,000 | 77,113,000 | 71,752,000 | ||||||||||
Capital expenditures | 98,235,000 | 101,163,000 | 91,808,000 | ||||||||||
Total assets | $ 1,702,007,000 | [2] | $ 1,533,237,000 | $ 1,702,007,000 | [2] | $ 1,533,237,000 | $ 1,424,161,000 | ||||||
[1] | In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain translated into a $0.48 benefit to the Company's diluted earnings per share. | ||||||||||||
[2] | In the second fiscal quarter of 2016, the Company adopted updated accounting guidance on the presentation of deferred income taxes. This adoption required that deferred tax liabilities and assets be classified as noncurrent in the Consolidated Balance Sheet. The Company elected to account for this change in presentation prospectively and prior periods were not retroactively adjusted. |
Note 15 - Summary of Long-Lived
Note 15 - Summary of Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Aug. 27, 2016 | Aug. 29, 2015 | |
UNITED STATES | |||
Long-lived assets | $ 880,666 | $ 831,295 | |
Europe, Canada, Mexico, and Nicaragua [Member] | |||
Long-lived assets | [1] | 43,727 | 40,119 |
Long-lived assets | $ 924,393 | $ 871,414 | |
[1] | No country accounts for greater than 10% of total long-lived assets, revenues or income before income taxes |
Note 15 - Summary of Revenues a
Note 15 - Summary of Revenues and Income Before Income Taxes by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 27, 2016 | [2] | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | ||
UNITED STATES | |||||||||||||
Revenues | $ 1,352,101 | $ 1,333,864 | $ 1,258,609 | ||||||||||
Income before income taxes | 197,441 | 188,704 | 182,354 | ||||||||||
Europe and Canada [Member] | |||||||||||||
Revenues | [1] | 115,945 | 122,741 | 136,288 | |||||||||
Europe, Canada, Mexico, and Nicaragua [Member] | |||||||||||||
Income before income taxes | [1] | 5,930 | 12,564 | 12,997 | |||||||||
Revenues | $ 363,766 | $ 367,799 | $ 363,097 | $ 373,384 | $ 359,208 | $ 365,574 | $ 361,462 | $ 370,361 | 1,468,046 | 1,456,605 | 1,394,897 | ||
Income before income taxes | $ 203,371 | $ 201,268 | $ 195,351 | ||||||||||
[1] | No country accounts for greater than 10% of total long-lived assets, revenues or income before income taxes | ||||||||||||
[2] | In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain translated into a $0.48 benefit to the Company's diluted earnings per share. |
Note 16 - Subsequent Event (Det
Note 16 - Subsequent Event (Details Textual) - Arrow Uniform [Member] - Subsequent Event [Member] $ in Millions | Sep. 19, 2016USD ($) |
Payments to Acquire Businesses, Gross | $ 122 |
Number of Locations | 12 |
Entity Number of Employees | 700 |
Number of States in which Entity Operates | 5 |
Quarterly Financial Data (Una89
Quarterly Financial Data (Unaudited) (Details Textual) $ / shares in Units, $ in Millions | 3 Months Ended |
Aug. 27, 2016USD ($)$ / shares | |
Selling, General and Administrative Expenses [Member] | |
Gain (Loss) Related to Litigation Settlement | $ | $ 15.9 |
Gain (Loss) Related to Litigation Settlement, Diluted Earnings Per Share | $ / shares | $ 0.48 |
Quarterly Financial Data (Una90
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 27, 2016 | [1] | May 28, 2016 | Feb. 27, 2016 | Nov. 28, 2015 | Aug. 29, 2015 | May 30, 2015 | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Common Class A [Member] | ||||||||||||
Income per share – Basic (in dollars per share) | $ 1.84 | $ 1.57 | $ 1.23 | $ 1.88 | $ 1.51 | $ 1.70 | $ 1.33 | $ 1.96 | $ 6.51 | $ 6.50 | $ 6.29 | |
Income per share – Diluted (in dollars per share) | $ 1.74 | $ 1.49 | $ 1.16 | $ 1.78 | $ 1.43 | $ 1.61 | $ 1.26 | $ 1.85 | $ 6.17 | $ 6.15 | $ 5.95 | |
Income allocated to – Basic | $ 28,097,000 | $ 23,939,000 | $ 18,691,000 | $ 28,539,000 | $ 23,011,000 | $ 25,817,000 | $ 20,182,000 | $ 29,649,000 | $ 99,282,000 | $ 98,665,000 | $ 94,849,000 | |
Income allocated to – Diluted | $ 35,250,000 | $ 30,007,000 | $ 23,401,000 | $ 35,741,000 | $ 28,821,000 | $ 32,310,000 | $ 25,235,000 | $ 37,101,000 | $ 124,409,000 | $ 123,472,000 | $ 118,626,000 | |
Weighted average number of shares outstanding – Basic (in shares) | 15,268 | 15,253 | 15,241 | 15,218 | 15,210 | 15,207 | 15,185 | 15,128 | 15,245 | 15,182 | 15,080 | |
Weighted average number of shares outstanding – Diluted (in shares) | 20,223 | 20,183 | 20,138 | 20,132 | 20,142 | 20,118 | 20,065 | 20,008 | 20,154 | 20,079 | 19,939 | |
Common Class B [Member] | ||||||||||||
Income per share – Basic (in dollars per share) | $ 1.47 | $ 1.26 | $ 0.98 | $ 1.50 | $ 1.21 | $ 1.36 | $ 1.06 | $ 1.57 | $ 5.21 | $ 5.20 | $ 5.03 | |
Income allocated to – Basic | $ 7,139,000 | $ 6,061,000 | $ 4,704,000 | $ 7,193,000 | $ 5,803,000 | $ 6,483,000 | $ 5,041,000 | $ 7,434,000 | $ 25,093,000 | $ 24,761,000 | $ 23,705,000 | |
Weighted average number of shares outstanding – Basic (in shares) | 4,850 | 4,827 | 4,795 | 4,795 | 4,795 | 4,773 | 4,741 | 4,741 | 4,816 | 4,763 | 4,711 | |
Revenues | $ 363,766,000 | $ 367,799,000 | $ 363,097,000 | $ 373,384,000 | $ 359,208,000 | $ 365,574,000 | $ 361,462,000 | $ 370,361,000 | $ 1,468,046,000 | $ 1,456,605,000 | $ 1,394,897,000 | |
Income before income taxes | 57,315,000 | 48,699,000 | 38,999,000 | 58,358,000 | 46,215,000 | 52,843,000 | 41,376,000 | 60,834,000 | 203,371,000 | 201,268,000 | 195,351,000 | |
Provision for income taxes | 21,821,000 | 18,555,000 | 15,501,000 | 22,468,000 | 17,274,000 | 20,344,000 | 15,930,000 | 23,421,000 | 78,345,000 | 76,969,000 | 75,426,000 | |
Net income | $ 35,494,000 | $ 30,144,000 | $ 23,498,000 | $ 35,890,000 | $ 28,941,000 | $ 32,499,000 | $ 25,446,000 | $ 37,413,000 | $ 125,026,000 | $ 124,299,000 | $ 119,925,000 | |
Income per share – Diluted (in dollars per share) | $ 6.17 | $ 6.15 | $ 5.95 | |||||||||
Income allocated to – Diluted | $ 124,409,000 | $ 123,472,000 | $ 118,626,000 | |||||||||
Weighted average number of shares outstanding – Diluted (in shares) | 20,154 | 20,079 | 19,939 | |||||||||
[1] | In the fourth fiscal quarter of 2016, operating results benefited from a settlement of environmental litigation that resulted in the Company recording a $15.9 million pre-tax gain. This gain translated into a $0.48 benefit to the Company's diluted earnings per share. |
Schedule II - Valuation and Q91
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 27, 2016 | Aug. 29, 2015 | Aug. 30, 2014 | |
Allowance for Doubtful Accounts [Member] | |||
Balance | $ 6,007 | $ 5,114 | $ 4,894 |
Charged to Costs and Expenses | 6,375 | 5,098 | 4,378 |
Charges for Which Reserves Were Created or Deductions | (4,707) | (4,205) | (4,158) |
Balance | 7,675 | 6,007 | 5,114 |
Inventory Valuation Reserve [Member] | |||
Balance | 2,614 | 1,913 | 2,018 |
Charged to Costs and Expenses | 1,824 | 2,060 | 535 |
Charges for Which Reserves Were Created or Deductions | (1,908) | (1,359) | (640) |
Balance | $ 2,530 | $ 2,614 | $ 1,913 |