Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Aug. 28, 2021 | Oct. 22, 2021 | Feb. 26, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Aug. 28, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | UNIFIRST CORPORATION | ||
Entity Central Index Key | 0000717954 | ||
Current Fiscal Year End Date | --08-28 | ||
Entity Filer Category | Large Accelerated Filer | ||
Title of 12(b) Security | Common Stock, $0.10 par value per share | ||
Trading Symbol | UNF | ||
Security Exchange Name | NYSE | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity File Number | 001-08504 | ||
Entity Tax Identification Number | 04-2103460 | ||
Entity Address, Address Line One | 68 Jonspin Road | ||
Entity Address, City or Town | Wilmington | ||
Entity Address, State or Province | MA | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Address, Postal Zip Code | 01887 | ||
City Area Code | (978) | ||
Local Phone Number | 658-8888 | ||
ICFR Auditor Attestation Flag | true | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 3,639,023,532 | ||
Documents Incorporated by Reference | Documents Incorporated By Reference The Registrant intends to file a Definitive Proxy Statement pursuant to Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended, for its 2022 Annual Meeting of Shareholders within 120 days of the end of the fiscal year ended August 28, 2021. Portions of such Proxy Statement are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 15,226,121 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,643,009 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | ||
Revenues | $ 1,826,216 | $ 1,804,159 | $ 1,809,376 | |
Operating expenses: | ||||
Cost of revenues | [1] | 1,141,275 | 1,164,932 | 1,139,195 |
Selling and administrative expenses | [1] | 383,161 | 361,801 | 334,840 |
Depreciation and amortization | 105,955 | 104,697 | 103,333 | |
Total operating expenses | 1,630,391 | 1,631,430 | 1,577,368 | |
Operating income | 195,825 | 172,729 | 232,008 | |
Other (income) expense: | ||||
Interest income, net | (2,568) | (6,382) | (9,082) | |
Other expense, net | 1,522 | 1,223 | 3,166 | |
Total other income, net | (1,046) | (5,159) | (5,916) | |
Income before income taxes | 196,871 | 177,888 | 237,924 | |
Provision for income taxes | 45,760 | 42,118 | 58,790 | |
Net income | $ 151,111 | $ 135,770 | $ 179,134 | |
Income per share—Diluted: | ||||
Common stock (in dollars per share) | $ 7.94 | $ 7.13 | $ 9.33 | |
Income allocated to—Basic: | ||||
Common stock | $ 151,111 | $ 135,770 | $ 179,134 | |
Income allocated to—Diluted: | ||||
Common Stock | $ 151,111 | $ 135,770 | $ 179,134 | |
Weighted average number of shares outstanding—Basic: | ||||
Common stock (in shares) | 18,880 | 18,919 | 19,082 | |
Weighted average number of shares outstanding—Diluted: | ||||
Common stock (in shares) | 19,038 | 19,042 | 19,196 | |
Common Stock | ||||
Income per share—Basic: | ||||
Common stock (in dollars per share) | $ 8.32 | $ 7.46 | $ 9.77 | |
Income allocated to—Basic: | ||||
Common stock | $ 126,848 | $ 114,017 | $ 150,247 | |
Weighted average number of shares outstanding—Basic: | ||||
Common stock (in shares) | 15,237 | 15,276 | 15,385 | |
Class B Common Stock | ||||
Income per share—Basic: | ||||
Common stock (in dollars per share) | $ 6.66 | $ 5.97 | $ 7.81 | |
Income allocated to—Basic: | ||||
Common stock | $ 24,263 | $ 21,753 | $ 28,887 | |
Weighted average number of shares outstanding—Basic: | ||||
Common stock (in shares) | 3,643 | 3,643 | 3,697 | |
[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 ($) $ in Thousands | 12 Months Ended | |||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 151,111 | $ 135,770 | $ 179,134 | |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | 4,208 | 2,631 | (3,524) | |
Pension benefit liabilities, net of income taxes | [1] | 2,960 | (787) | (5,104) |
Change in fair value of derivatives, net of income taxes | (68) | 25 | 252 | |
Derivative financial instruments reclassified to earnings | 34 | (151) | (153) | |
Other comprehensive (loss) income | 7,134 | 1,718 | (8,529) | |
Comprehensive income | $ 158,245 | $ 137,488 | $ 170,605 | |
[1] | These amounts are shown net of the effect of income taxes. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Current assets: | ||
Cash, cash equivalents and short-term investments | $ 512,868 | $ 474,838 |
Receivables, less reserves of $11,122 and $12,125, respectively | 208,331 | 190,916 |
Inventories | 143,591 | 106,269 |
Rental merchandise in service | 181,531 | 154,278 |
Prepaid taxes | 16,580 | 7,115 |
Prepaid expenses and other current assets | 40,891 | 35,918 |
Total current assets | 1,103,792 | 969,334 |
Property, plant and equipment, net | 617,719 | 582,470 |
Goodwill | 429,538 | 424,844 |
Customer contracts, net | 49,129 | 56,946 |
Other intangible assets, net | 35,509 | 28,590 |
Deferred income taxes | 580 | 522 |
Operating lease right-of-use assets, net | 42,115 | 42,710 |
Other assets | 102,683 | 93,611 |
Total assets | 2,381,065 | 2,199,027 |
Current liabilities: | ||
Accounts payable | 81,356 | 64,035 |
Accrued liabilities | 159,578 | 132,965 |
Accrued taxes | 743 | 527 |
Operating lease liabilities, current | 12,993 | 12,569 |
Total current liabilities | 254,670 | 210,096 |
Accrued liabilities | 134,085 | 132,820 |
Accrued and deferred income taxes | 89,177 | 85,721 |
Operating lease liabilities | 30,181 | 29,261 |
Total liabilities | 508,113 | 457,898 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Preferred Stock, $1.00 par value; 2,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Capital surplus | 89,257 | 86,645 |
Retained earnings | 1,806,643 | 1,684,565 |
Accumulated other comprehensive loss | (24,836) | (31,970) |
Total shareholders’ equity | 1,872,952 | 1,741,129 |
Total liabilities and shareholders’ equity | 2,381,065 | 2,199,027 |
Common Stock | ||
Shareholders’ equity: | ||
Common Stock | 1,524 | 1,525 |
Class B Common Stock | ||
Shareholders’ equity: | ||
Common Stock | $ 364 | $ 364 |
Consolidated Balance Sheets - P
Consolidated Balance Sheets - Parenthetical - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Receivables, reserves | $ 11,122 | $ 12,125 |
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 |
Common Stock | ||
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) | 15,235,601 | 15,251,176 |
Common stock, shares outstanding (in shares) | 15,235,601 | 15,251,176 |
Class B Common Stock | ||
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) | 3,643,009 | 3,643,009 |
Common stock, shares outstanding (in shares) | 3,643,009 | 3,643,009 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common StockCommon Shares | Common StockCommon SharesCumulative Effect, Period of Adoption, Adjustment | Common StockClass B Common Stock | Capital Surplus | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss | |
Balance at beginning of period at Aug. 25, 2018 | $ 1,464,967 | $ 1,543 | $ 371 | $ 82,973 | $ 1,405,239 | $ (25,159) | ||||
Balance at beginning of period (in shares) at Aug. 25, 2018 | 15,431 | 3,710 | ||||||||
Accounting Standards Update [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate201409Member | us-gaap:AccountingStandardsUpdate201409Member | us-gaap:AccountingStandardsUpdate201409Member | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 179,134 | 179,134 | ||||||||
Pension benefit liabilities, net | [1] | (5,104) | (5,104) | |||||||
Change in fair value of derivatives | 99 | 99 | ||||||||
Foreign currency translation | (3,524) | (3,524) | ||||||||
Dividends declared | (8,243) | (8,243) | ||||||||
Shares converted | $ 7 | $ (7) | ||||||||
Shares converted (in shares) | 67 | (67) | ||||||||
Share-based compensation, net | [2] | 2,997 | 2,997 | |||||||
Share-based awards exercised, net | [1] | 51 | $ 3 | 48 | ||||||
Share-based awards exercised, net (in shares) | [1] | 32 | ||||||||
Repurchase of Common Stock | (30,515) | $ (20) | (1,072) | (29,423) | ||||||
Repurchase of common stock (in shares) | (197) | |||||||||
Balance at end of period at Aug. 31, 2019 | 1,641,230 | $ 41,368 | $ 1,533 | $ 364 | 84,946 | 1,588,075 | $ 41,368 | (33,688) | ||
Balance at end of period (in shares) at Aug. 31, 2019 | 15,333 | 3,643 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 135,770 | 135,770 | ||||||||
Pension benefit liabilities, net | [1] | (787) | (787) | |||||||
Change in fair value of derivatives | (126) | (126) | ||||||||
Foreign currency translation | 2,631 | 2,631 | ||||||||
Dividends declared | (18,185) | (18,185) | ||||||||
Share-based compensation, net | [2] | 2,268 | 2,268 | |||||||
Share-based awards exercised, net | [1] | 73 | $ 3 | 70 | ||||||
Share-based awards exercised, net (in shares) | [1] | 36 | ||||||||
Repurchase of Common Stock | (21,745) | $ (11) | (639) | (21,095) | ||||||
Repurchase of common stock (in shares) | (118) | |||||||||
Balance at end of period at Aug. 29, 2020 | 1,741,129 | $ 1,525 | $ 364 | 86,645 | 1,684,565 | (31,970) | ||||
Balance at end of period (in shares) at Aug. 29, 2020 | 15,251 | 3,643 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 151,111 | 151,111 | ||||||||
Pension benefit liabilities, net | [1] | 2,960 | 2,960 | |||||||
Change in fair value of derivatives | (34) | (34) | ||||||||
Foreign currency translation | 4,208 | 4,208 | ||||||||
Dividends declared | (18,147) | (18,147) | ||||||||
Share-based compensation, net | [2] | 2,943 | 2,943 | |||||||
Share-based awards exercised, net | [1] | 4 | $ 4 | |||||||
Share-based awards exercised, net (in shares) | [1] | 46 | ||||||||
Repurchase of Common Stock | (11,222) | $ (5) | (331) | (10,886) | ||||||
Repurchase of common stock (in shares) | (61) | |||||||||
Balance at end of period at Aug. 28, 2021 | $ 1,872,952 | $ 1,524 | $ 364 | $ 89,257 | $ 1,806,643 | $ (24,836) | ||||
Balance at end of period (in shares) at Aug. 28, 2021 | 15,236 | 3,643 | ||||||||
[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 restricted stock units. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 151,111 | $ 135,770 | $ 179,134 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 105,955 | 104,697 | 103,333 |
Amortization of deferred financing costs | 147 | 112 | 112 |
Forgiveness of a liability | (7,346) | ||
Share-based compensation | 7,011 | 5,999 | 5,761 |
Accretion on environmental contingencies | 448 | 537 | 755 |
Accretion on asset retirement obligations | 985 | 929 | 865 |
Other | 391 | 2,524 | (283) |
Deferred income taxes | 300 | (12,152) | 8,896 |
Changes in assets and liabilities, net of acquisitions: | |||
Receivables, less reserves | (16,685) | 14,589 | (3,189) |
Inventories | (37,213) | (5,066) | (10,736) |
Rental merchandise in service | (26,323) | 32,262 | (10,324) |
Prepaid expenses and other current assets and Other assets | 5,015 | 840 | (8,011) |
Accounts payable | 15,136 | (10,702) | 3,365 |
Accrued liabilities | 16,446 | 19,866 | (1,027) |
Prepaid and accrued income taxes | (10,422) | (3,521) | 20,837 |
Net cash provided by operating activities | 212,302 | 286,684 | 282,142 |
Cash flows from investing activities: | |||
Acquisition of businesses, net of cash acquired | (8,443) | (41,221) | (4,919) |
Capital expenditures, including capitalization of software costs | (133,639) | (116,717) | (119,815) |
Proceeds from sale of assets | 617 | 322 | 405 |
Net cash used in investing activities | (141,465) | (157,616) | (124,329) |
Cash flows from financing activities: | |||
Payment of deferred financing costs | (822) | ||
Proceeds from exercise of share-based awards | 4 | 73 | 51 |
Taxes withheld and paid related to net share settlement of equity awards | (4,068) | (3,731) | (2,767) |
Repurchase of Common Stock | (11,222) | (21,745) | (30,515) |
Payment of cash dividends | (18,147) | (15,700) | (8,260) |
Net cash used in financing activities | (34,255) | (41,103) | (41,491) |
Effect of exchange rate changes | 1,448 | 1,532 | (1,493) |
Net increase in cash, cash equivalents and short-term investments | 38,030 | 89,497 | 114,829 |
Cash, cash equivalents and short-term investments at beginning of period | 474,838 | 385,341 | 270,512 |
Cash, cash equivalents and short-term investments at end of period | 512,868 | 474,838 | 385,341 |
Supplemental disclosure of cash flow information: | |||
Capital expenditures in accounts payable | 6,705 | 6,637 | 9,928 |
Interest paid | 685 | 637 | 750 |
Income taxes paid, net of refunds received | $ 56,393 | $ 58,402 | $ 28,354 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 28, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 as well as provide certain safety training, 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, manufacturers, maintenance facilities, restaurants and food-related businesses, business service companies, soft and durable goods wholesalers, transportation companies, energy producing operations, healthcare providers and others who require employee clothing on the job for image, identification, protection or utility purposes. The Company also provides its customers with restroom and cleaning supplies, including air fresheners, paper products, gloves, masks, hand soaps and sanitizers. 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: U.S. and Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate. The operations of the U.S. 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 U.S. and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its “Core Laundry Operations”. The COVID-19 pandemic had a significant adverse impact on the Company’s revenues in the second half of fiscal 2020 and the first half of fiscal 2021. In these consolidated financial statements and related disclosures, the Company has assessed the current impact of COVID-19 on its consolidated financial condition, results of operations, and cash flows, as well as the Company’s estimates and accounting policies. The Company has made additional disclosures of these assessments, as necessary. Given the unprecedented nature of the COVID-19 pandemic, including the emergence of new variants of the virus and delays in the distribution and administration of various vaccines, particularly in certain geographic regions, the Company cannot reasonably estimate the full extent or duration of the impact COVID-19 will have on its consolidated financial condition, results of operations, or cash flows in the foreseeable future. The ultimate impact of COVID-19 on the Company is highly uncertain and will depend on future developments, and such impacts could exist for an extended period of time, even after the COVID-19 pandemic subsides. 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. Basis of Presentation The Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. There have been no material changes in the accounting policies followed by the Company during the current fiscal year other than the adoption of recent accounting pronouncements as discussed in greater detail in the Recent Accounting Pronouncements sub-section of this Note. Use of Estimates The preparation of these Consolidated Financial Statements is in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The Company utilizes key estimates in preparing the financial statements including casualty and environmental estimates, recoverability of goodwill, intangibles, income taxes and long-lived assets. These estimates are based on historical information, current trends, and information available from other sources. The Company’s results are affected by economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies, government policies surrounding the containment of COVID-19 and changes in the prices of raw materials, can have a significant effect on operations. These factors and other events could cause actual results to differ from management's estimates. Fiscal Year The Company’s fiscal year ends on the last Saturday in August. For financial reporting purposes, fiscal years ended August 28, 2021 (“fiscal 2021”) and August 29, 2020 (“fiscal 2020”) both consisted of 52 weeks and Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments include cash in banks, money market securities, and bank short-term investments having original maturities of twelve months or less. As of each of August 28, 2021 and August 29, 2020, the Company had no short-term investments. Accounts receivable Accounts receivable represents amounts due from customers and is presented net of reserves for expected credit losses. The Company utilizes its judgment and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the reserve for expected credit losses. The Company considers specific accounts receivable and historical credit loss experience, customer credit worthiness, current economic trends and the age of outstanding balances as part of its evaluation. When an account is considered uncollectible, it is written off against the reserve for expected credit losses. In response to the economic disruption created by the COVID-19 pandemic and the resulting impact on our customer base, the Company performed an additional evaluation of amounts due from customers in fiscal 2020 that were deemed to be higher collection risk. This evaluation resulted in a reserve for expected credit losses in excess of historical rates. The judgment applied to increase the reserve for expected credit losses beyond our historical policy was deemed to be reasonable and supportable based on the data available as of the consolidated balance sheet date. Financial Instruments The Company’s financial instruments, which may expose the Company to concentrations of credit risk, include cash, cash equivalents and short-term investments, receivables, accounts payable and foreign exchange forward contracts. Each of these financial instruments is recorded at cost, which approximates its fair value given the short maturity of each financial instrument. Revenue Recognition Approximately 91.3% of the Company’s revenues are derived from fees for route servicing of Core Laundry Operations, Specialty Garments and First Aid services performed by the Company’s employees at the customer’s location of business. Revenues from the Company’s route servicing customer contracts represent a single-performance obligation. The Company recognizes these revenues over time as services are performed based on the nature of services provided and contractual rates (input method). Certain of the Company’s customer contracts, primarily within the Company’s Core Laundry Operations, include pricing terms and conditions that include components of variable consideration. The variable consideration is typically in the form of consideration due to a customer based on performance metrics specified within the contract. Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels. Each component of variable consideration is earned based on the Company’s actual performance during the measurement period specified within the contract. To determine the transaction price, the Company estimates the variable consideration using the most likely amount method, based on the specific contract provisions and known performance results during the relevant measurement period. When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal. The Company’s performance period generally corresponds with the monthly invoice period. No significant constraints on the Company’s revenue recognition were applied during fiscal 2021 . The Company reassesses these estimates during each reporting period. The Company maintains a liability for these discounts and rebates within accrued liabilities on the consolidated balance sheets. Variable consideration also includes consideration paid to a customer at the beginning of a contract. The Company capitalizes this consideration and amortizes it over the life of the contract as a reduction to revenue in accordance with the accounting guidance for revenue recognition. These assets are included in other assets on the consolidated balance sheets. The following table presents the Company’s revenues for fiscal 2021, 2020, and 2019 disaggregated by service type: Years ended August 28, 2021 August 29, 2020 August 31, 2019 (In thousands, except percentages) Revenues % of Revenues Revenues % of Revenues Revenues % of Revenues Core Laundry Operations $ 1,615,560 88.5 % $ 1,601,485 88.8 % $ 1,616,205 89.3 % Specialty Garments 145,454 8.0 % 133,185 7.4 % 132,767 7.3 % First Aid 65,202 3.5 % 69,489 3.8 % 60,404 3.4 % Total Revenues $ 1,826,216 100.0 % $ 1,804,159 100.0 % $ 1,809,376 100.0 % During fiscal 2021, 2020 and 2019 the percentage of revenues recognized over time as the services are performed was 95.8%, 94.7% and 95.8% of Core Laundry Operations revenues, respectively, and 81.8%, 79.2% and 82.7% of Specialty Garments revenues, respectively. During fiscal 2021, 2020 and 2019 4.2%, 5.3% and 4.2% of Core Laundry Operations revenues, respectively, 18.2%, 20.8% and 17.3% of Specialty Garments revenues, respectively, and 100% of First Aid revenues were recognized at a point in time, which generally occurs when the goods are transferred to the customer. Costs to Obtain a Contract The Company defers commission expenses paid to its employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract. The deferred commissions are amortized on a straight-line basis over the expected period of benefit. The Company reviews the deferred commission balances for impairment on an ongoing basis. Deferred commissions are classified as current or noncurrent based on the timing of when the Company expects to recognize the expense. The current portion is included in prepaid expenses and other current assets and the non-current portion is included in other assets on the Company’s consolidated balance sheets. As of August 28, 2021, the current and non-current assets related to deferred commissions totaled $14.2 million and $60.6 million, respectively. As of August 29, 2020, the current and non-current assets related to deferred commissions totaled $13.3 million and $55.6 million, respectively. During fiscal 2021 and 2020, we recorded $14.4 million and $13.7 million, respectively, of amortization expense related to deferred commissions. This amortization expense is classified in selling and administrative expenses on the consolidated statements of income. Inventories and Rental Merchandise in Service Inventories are stated at the lower of cost or net realizable value, net of any reserve for excess and obsolete inventory. Work-in-process and finished goods inventories consist of materials, labor and manufacturing overhead. 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 28, 2021 and August 29, 2020 were as follows (in thousands): August 28, 2021 August 29, 2020 Raw materials $ 24,846 $ 20,266 Work in process 4,703 2,730 Finished goods 114,042 83,273 Total inventory $ 143,591 $ 106,269 Rental merchandise in service is amortized, primarily on a straight-line basis, over the estimated service lives of the merchandise, which range from six to thirty-six months. The amortization expense is included in the cost of revenues on the Company’s Consolidated Statements of Income. 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 28, 2021 and August 29, 2020 were as follows (in thousands): August 28, 2021 August 29, 2020 Land, buildings and leasehold equipment $ 618,910 $ 558,277 Machinery and equipment 595,081 585,211 Motor vehicles 285,543 278,098 1,499,534 1,421,586 Less: accumulated depreciation 881,815 839,116 Total property, plant and equipment $ 617,719 $ 582,470 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 were no material impairments of long-lived assets in fiscal 2021, 2020 and 2019. Goodwill and Other Intangible Assets In accordance with U.S. GAAP, the Company does not amortize goodwill. Instead, the Company tests goodwill for impairment on an annual basis. Management completed its annual goodwill impairment test on the last day of the fourth quarter of each fiscal year prior to fiscal 2020. In fiscal 2020, the Company changed its annual goodwill impairment test date to the first day of the fourth quarter to better align with its internal business processes. In addition, U.S. 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 used the qualitative assessment option for its impairment testing for goodwill in fiscal 2021 and determined that the fair values of the reporting units more likely than not exceeded their carrying values and that there was no evidence of impairment as of May 30, 2021. The Company cannot predict future economic conditions and their impact on the Company or the future net realizable 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 U.S. GAAP. There were no impairments of goodwill or indicators of impairment for definite-lived intangible assets in fiscal 2021, 2020 or 2019. As of August 28, 2021, definite-lived intangible assets have a weighted average useful life of approximately 11.9 years. Customer contracts have a weighted average useful life of approximately 13.5 years and other intangible assets, net, which consist of primarily, restrictive covenants, software and trademarks, have a weighted average useful life of approximately 9.6 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 28, 2021 using risk-free interest rates ranging from 1.31% to 1.91% 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 U.S. 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-five 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 7.00% to 7.50%. 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 are 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 for health, workers’ compensation, vehicles and general liability programs 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, the Company estimates the portion of the liability that will be covered by existing insurance policies to arrive at its 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. Deferred tax assets and liabilities are determined by the differences between the consolidated financial statement carrying amounts and the tax basis of assets and liabilities. See Note 4, “Income Taxes” in these Consolidated Financial Statements for the types of items that give rise to significant deferred income tax assets and liabilities. Deferred income taxes are classified as assets or liabilities based on the classification of the related asset or liability for financial reporting purposes. The Company regularly reviews deferred tax assets for recoverability based upon projected future taxable income and the expected timing of the reversals of existing temporary differences. Although realization is not assured, management believes it is more likely than not that the recorded deferred tax assets will be realized. 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 . Advertising Costs Advertising costs are expensed as incurred and are classified as selling and administrative expenses. The Company incurred advertising costs of $3.5 million, $3.8 million and $3.6 million, for fiscal 2021, 2020 and 2019, respectively. Share-Based Compensation Compensation expense for all stock options, stock appreciation rights, unrestricted stock and restricted stock units (collectively, “Share-Based Awards”) is recognized ratably over the related vesting period, net of actual forfeitures. Certain Share-Based Awards in the form of stock appreciation rights and shares of unrestricted stock were granted during fiscal 2021, 2020 and 2019 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 in fiscal 2021, 2020 and 2019 was recognized on the date of grant. For performance-based restricted stock unit awards with revenue and earnings per share performance criteria , we evaluate the probability of meeting the performance criteria at each balance sheet date and , if probable, related compensation cost is amortized over the performance period on a straight-line basis because such awards vest only at the end of the measurement period. Changes to the probability assessment and the estimate of shares expected to vest will result in adjustments to the related share-based compensation expense that will be recorded in the period of the change. If the performance targets are not achieved, no compensation cost is recognized and any previously recognized compensation cost is reversed. U.S. GAAP requires that share-based compensation cost be measured at the grant date based on the fair 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 in the form of stock appreciation rights at the grant date requires judgment, including estimating expected dividends and share price volatility. The fair value of each Share-Based Award in the form of stock appreciation rights is estimated on the date of grant using the Black-Scholes option pricing model. The Company recognizes compensation expense for restricted stock and restricted stock unit grants over the related vesting period. The fair value for each restricted stock, unrestricted stock and restricted stock unit 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. Income Per Share The Company calculates income per share by allocating income to its unvested participating securities as part of its income per share 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 income 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 income 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 28, 2021 August 29, 2020 August 31, 2019 Net income available to shareholders $ 151,111 $ 135,770 $ 179,134 Allocation of net income for Basic: Common Stock $ 126,848 $ 114,017 $ 150,247 Class B Common Stock 24,263 21,753 28,887 $ 151,111 $ 135,770 $ 179,134 Weighted average number of shares for Basic: Common Stock 15,237 15,276 15,385 Class B Common Stock 3,643 3,643 3,697 18,880 18,919 19,082 Income per share for Basic: Common Stock $ 8.32 $ 7.46 $ 9.77 Class B Common Stock $ 6.66 $ 5.97 $ 7.81 The Company is required to calculate the diluted income per share 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 fiscal 2021, 2020 and 2019, the Company’s diluted income per share assumes the conversion of all Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares. The following table sets forth the computation of diluted income per share of Common Stock for the years ended August 28, 2021 , August 29, 2020 and August 31, 2019 (in thousands, except per share data): Year Ended August 28, 2021 Year Ended August 29, 2020 Year Ended August 31, 2019 Earnings to Common shareholders Common Shares Income Per Share Earnings to Common shareholders Common Shares Income Per Share Earnings to Common shareholders Common Shares Income Per Share As reported—Basic $ 126,848 15,237 $ 8.32 $ 114,017 15,276 $ 7.46 $ 150,247 15,385 $ 9.77 Add: effect of dilutive potential common shares Share-Based Awards — 158 — 123 — 114 Class B Common Stock 24,263 3,643 21,753 3,643 28,887 3,697 Diluted Income Per Share— Common Stock $ 151,111 19,038 $ 7.94 $ 135,770 19,042 $ 7.13 $ 179,134 19,196 $ 9.33 Share-Based Awards that would result in the issuance of 6,005, 8,094 and 8,325 shares, respectively, of Common Stock were excluded from the calculation of diluted earnings per share for fiscal 2021, 2020 and 2019 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 expense, net 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. |
Acquisitions
Acquisitions | 12 Months Ended |
Aug. 28, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions During fiscal 2021, the Company completed eight business acquisitions with an aggregate purchase price of approximately $8.7 million. The allocations of the purchase prices with respect to certain assets acquired during fiscal 2021 are complete. 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. In September 2019, the Company completed an acquisition for approximately $38.8 million. The all-cash transaction was structured as an asset acquisition, with the Company acquiring substantially all of the acquired company’s industrial laundry, industrial uniform rental and industrial direct sales assets. 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 28, 2021 August 29, 2020 August 31, 2019 Number of businesses acquired 8 8 6 Tangible assets acquired $ 812 $ 6,370 $ 322 Goodwill 4,533 23,544 3,929 Customer contracts 3,219 12,697 1,344 Other intangible assets 179 594 118 Liabilities assumed — (1,872 ) — Acquisition of businesses $ 8,743 $ 41,333 $ 5,713 Tangible assets acquired primarily relate to accounts receivable, inventory, prepaid expenses and property, plant and equipment. Liabilities assumed primarily relate to leases, 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 2021, 2020 and 2019, the goodwill was primarily allocated to the U.S. and Canadian Rental and Cleaning segment and is deductible for tax purposes. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Aug. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements U.S. 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 U.S. 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 28, 2021 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 197,081 $ — $ — $ 197,081 Pension plan assets — 3,795 — 3,795 Foreign currency forward contracts — 41 — 41 Total assets at fair value $ 197,081 $ 3,836 $ — $ 200,917 As of August 29, 2020 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 196,478 $ — $ — $ 196,478 Pension plan assets — 4,146 — 4,146 Foreign currency forward contracts — 87 — 87 Total assets at fair value $ 196,478 $ 4,233 $ — $ 200,711 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. These contracts are included in prepaid expenses and other current assets and other long-term assets as of August 28, 2021 and August 29, 2020. 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 4. Income Taxes The provision / (benefit) for income taxes consists of the following (in thousands): Fiscal year 2021 2020 2019 Current: Federal $ 35,267 $ 40,084 $ 38,545 Foreign 1,714 1,589 (200 ) State 9,873 12,865 11,733 Total current $ 46,854 $ 54,538 $ 50,078 Deferred: Federal $ (1,421 ) $ (8,522 ) $ 7,289 Foreign 848 (599 ) 645 State (521 ) (3,299 ) 778 Total deferred $ (1,094 ) $ (12,420 ) $ 8,712 Total $ 45,760 $ 42,118 $ 58,790 The following table reconciles the provision for income taxes using the statutory federal income tax rate to the actual provision for income taxes: Fiscal year 2021 2020 2019 Income taxes at the statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes 4.2 4.4 4.3 Other (2.0 ) (1.7 ) (0.6 ) Total 23.2 % 23.7 % 24.7 % The components of deferred income taxes included on the consolidated balance sheets are as follows (in thousands): August 28, 2021 August 29, 2020 Deferred Tax Assets Payroll and benefit related $ 21,893 $ 17,451 Insurance related 14,042 13,790 Environmental 8,408 7,856 Accrued expenses 10,134 6,270 Operating lease liabilities 9,214 8,720 Other 8,127 7,536 Total deferred tax assets $ 71,818 $ 61,623 Deferred Tax Liabilities Payroll and benefit related $ 19,474 $ 17,722 Tax in excess of book depreciation 40,725 41,713 Purchased intangible assets 36,183 32,892 Rental merchandise in service 45,432 38,846 Operating lease right-of-use assets 8,984 8,952 Other 157 191 Total deferred tax liabilities 150,955 140,316 Net deferred tax liability $ 79,137 $ 78,693 The Company regularly reviews deferred tax assets for recoverability based upon projected future taxable income and the expected timing of the reversals of existing temporary differences. Although realization is not assured, management believes it is more likely than not that the recorded deferred tax assets will be realized. Effective tax rate The Company’s effective tax rate for the fiscal year ended August 28, 2021 was 23.2% as compared to 23.7% for the corresponding period in the prior year. The decrease in the effective tax rate was primarily due to the tax benefit related to the exercise of stock appreciation rights in fiscal 2021 compared to fiscal 2020. Foreign tax effect As of August 28, 2021, unremitted foreign earnings, have been retained by the Company’s foreign subsidiaries for indefinite reinvestment. If the Company were to repatriate those earnings, in the form of dividends or otherwise, the Company could be subject to immaterial withholding taxes payable to the various foreign countries. Uncertain tax positions As of August 28, 2021 and August 29, 2020, there was $9.3 million and $6.3 million, respectively, of unrecognized tax benefits, of which $8.7 million and $5.6 million, respectively, would favorably impact the Company’s effective tax rate, if recognized. The Company recognized 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 28, 2021 and August 29, 2020, the Company had accrued a total of $0.1 million and $0.2 million, respectively, in interest and penalties, in its long-term accrued liabilities. For the years ended August 28, 2021, August 29, 2020 and August 31, 2019 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 31, 2019 $ 7,668 Additions based on tax positions related to the current year 475 Additions for tax positions of prior years (1,389 ) Statute expirations (424 ) Balance at August 29, 2020 6,330 Additions based on tax positions related to the current year 637 Additions for tax positions of prior years 3,552 Reduction for tax positions of prior years (287 ) Statute expirations (911 ) Balance at August 28, 2021 $ 9,321 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 a number of Canadian provinces. 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. All U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2015 and 2013, respectively. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2016. 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. |
Loans Payable and Long-term Deb
Loans Payable and Long-term Debt | 12 Months Ended |
Aug. 28, 2021 | |
Debt Disclosure [Abstract] | |
Loans Payable and Long-term Debt | 5. Loans Payable and Long-term Debt As of August 28, 2021 and August 29, 2020, the Company had no outstanding loans payable. On March 26, 2021, the Company entered into an amended and restated $175.0 million unsecured revolving credit agreement (the “2021 Credit Agreement”) with a syndicate of banks, which matures on March 26, 2026. The 2021 Credit Agreement amended and restated the Company’s prior Credit Agreement (as defined below), which was scheduled to mature on April 11, 2021. Under the 2021 Credit Agreement, the Company may borrow funds at variable interest rates based on, at the Company’s 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, each as defined in the 2021 Credit Agreement. The Company tests its compliance with these financial covenants on a fiscal quarterly basis. As of August 28, 2021, the interest rates applicable to the Company’s borrowings under the 2021 Credit Agreement would be calculated as LIBOR plus 1.00% at the time of the respective borrowing. As of August 28, 2021, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $67.5 million, leaving $107.5 million available for borrowing under the 2021 Credit Agreement. As of August 28, 2021, the Company was in compliance with all covenants under the 2021 Credit Agreement. Prior to March 26, 2021, the Company had a $250.0 million unsecured revolving credit agreement (the “Prior Credit Agreement”) with a syndicate of banks, which was scheduled to mature on April 11, 2021. Under the Prior Credit Agreement, the Company was 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 required compliance with certain financial and other covenants, including a maximum consolidated funded debt ratio and minimum consolidated interest coverage ratio, each as defined in the Prior Credit Agreement. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Aug. 28, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 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. U.S. GAAP requires that all of the Company’s 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. The Company performs an assessment at the inception of the hedge and on a quarterly basis thereafter, to determine whether its 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 June 2018, the Company entered into twelve forward contracts to exchange 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 2019 and continuing through the second fiscal quarter of 2022. In total, the Company will sell approximately 12.1 million CAD at an average Canadian-dollar exchange rate of 0.7814 over these quarterly periods. The Company concluded that the forward contracts met the criteria to qualify as a cash flow hedge under U.S. GAAP. In August 2021, the Company entered into twenty forward contracts to exchange 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 first fiscal quarter of 2022 and continuing through the fourth fiscal quarter of 2026. In total, the Company will sell approximately 14.1 million CAD at an average Canadian-dollar exchange rate of 0.7861 over these quarterly periods. The Company concluded that the forward contracts met the criteria to qualify as a cash flow hedge under U.S. GAAP. As of August 28, 2021, the Company had forward contracts with a notional value of approximately 15.5 million CAD outstanding and recorded the fair value of the contracts of a nominal amount in prepaid expenses and other current assets with a corresponding loss of $0.1 million in accumulated other comprehensive loss, which was recorded net of tax. For the fiscal year ended August 28, 2021, the Company reclassified a nominal amount from accumulated other comprehensive loss to revenue, related to the derivative financial instruments. The loss on these forward contracts that results in an increase to accumulated other comprehensive loss as of August 28, 2021 is expected to be reclassified to revenues prior to their maturity on February 25, 2022 and August 29, 2026, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Aug. 28, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | 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 fiscal 2021, 2020 and 2019 were $19.9 million, $16.6 million and $19.7 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 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 $2.9 million, $2.6 million and $2.1 million for fiscal 2021, 2020 and 2019, respectively. The Company maintains a non-contributory defined benefit pension plan (“UniFirst Plan”) covering 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 GDA 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 $0.2 million for fiscal 2021 and 2020, respectively, and $0.3 million for fiscal 2019. 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 Textilease Plan was terminated in fiscal 2020. The pension benefits were based on years of service and the employee’s compensation. The Textilease Plan assets were held in a separate GDA with PRIAC; however the minimum interest rate per the Textilease Plan contract was 1.5%. The amount charged to expense related to this plan amounted to approximately $0.5 million for fiscal 2019. There was no expense incurred related to this plan in either fiscal 2021 or 2020. 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 fiscal 2021, 2020 and 2019 were as follows (in thousands): Pension Plans SERP 2021 2020 2019 2021 2020 2019 Service cost $ 71 $ 113 $ 114 $ 1,100 $ 918 $ 725 Interest cost 104 131 260 943 1,027 1,148 Expected return on assets (131 ) (138 ) (199 ) — — — Amortization of prior service cost 55 66 66 — — — Amortization of net loss 36 12 51 821 703 247 Other events 49 — 503 — — — Net periodic benefit cost $ 184 $ 184 $ 795 $ 2,864 $ 2,648 $ 2,120 The Company’s obligations and funded status related to its Pension Plans and SERP as of August 28, 2021 and August 29, 2020 were as follows (in thousands): Pension Plans SERP 2021 2020 2021 2020 Change in benefit obligation: Projected benefit obligation, beginning of year $ 5,468 $ 5,566 $ 38,616 $ 35,967 Service cost 71 113 1,100 918 Interest cost 104 131 943 1,027 Actuarial (gain) loss (225 ) 169 (2,890 ) 1,658 Benefits paid (28 ) (224 ) (1,125 ) (954 ) Settlements (355 ) (287 ) — — Projected benefit obligation, end of year $ 5,035 $ 5,468 $ 36,644 $ 38,616 Change in plan assets: Fair value of plan assets, beginning of year $ 4,146 $ 4,603 $ — $ — Actual return on plan assets 33 54 — — Employer contributions — — — — Benefits paid (28 ) (224 ) — — Settlements (355 ) (287 ) — — Fair value of plan assets, end of year $ 3,796 $ 4,146 $ — $ — Funded status (net amount recognized): $ (1,239 ) $ (1,322 ) $ (36,644 ) $ (38,616 ) As of August 28, 2021 and August 29, 2020, the accumulated benefit obligations for the Company’s Pension Plans were $5.0 million and $5.5 million, respectively. As of August 28, 2021 and August 29, 2020, the accumulated benefit obligations for the Company’s SERP were $30.6 million and $30.7 million, respectively. The amounts recorded on the Consolidated Balance Sheet for the Company’s Pension Plans and SERP as of August 28, 2021 and August 29, 2020 were as follows (in thousands): Pension Plans SERP 2021 2020 2021 2020 Deferred tax assets $ 213 $ 279 $ 2,218 $ 3,144 Accrued liabilities $ 1,240 $ 1,322 $ 36,644 $ 38,616 Accumulated other comprehensive loss $ (1,044 ) $ (819 ) $ (6,449 ) $ (9,234 ) As of August 28, 2021 and August 29, 2020, the amounts recognized in accumulated other comprehensive loss for the Company’s Pension Plans and SERP were as follows (in thousands): Pension Plans SERP 2021 2020 2021 2020 Net actuarial gain (loss) $ (1,180 ) $ (1,011 ) $ (6,449 ) $ (9,234 ) Unrecognized prior service cost 136 192 — — Accumulated other comprehensive loss $ (1,044 ) $ (819 ) $ (6,449 ) $ (9,234 ) The weighted average assumptions used in calculating the Company’s projected benefit obligation as of August 28, 2021 and August 29, 2020, were as follows: Pension Plans SERP 2021 2020 2021 2020 Discount rate 2.3 % 2.0 % 2.6 % 2.5 % Rate of compensation increase N/A N/A 5.0 % 5.0 % The weighted average assumptions used in calculating the Company’s net periodic service cost for the years ended August 28, 2021, August 29, 2020 and August 31, 2019, were as follows: Pension Plans SERP 2021 2020 2019 2021 2020 2019 Discount rate 2.0 % 2.7 % 3.8 % 2.5 % 2.9 % 4.0 % Expected return on plan assets 3.5 % 3.5 % 3.5 % N/A N/A N/A Rate of compensation increase N/A N/A N/A 5.0 % 5.0 % 5.0 % The benefit payments, which reflect expected future service, that are expected to be paid for the five fiscal years subsequent to August 28, 2021 and thereafter are as follows (in thousands): Pension Plans SERP 2022 $ 795 $ 1,362 2023 269 1,362 2024 250 1,549 2025 360 1,611 2026 377 1,750 Thereafter 2,984 29,010 Total benefit payments $ 5,035 $ 36,644 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Aug. 28, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 8. Goodwill and Other Intangible Assets As discussed in Note 2, “Acquisitions”, when the Company acquires a business the amount assigned to the tangible assets and liabilities and intangible assets acquired is based on their respective fair values determined as of the acquisition date. The excess of the purchase price over the tangible assets and liabilities and intangible assets is recorded as goodwill. The following details the changes in the Company’s intangible assets and goodwill related to the Company’s acquisitions for the years ended August 28, 2021 and August 29, 2020 as well as the respective periods over which the assets will be amortized (in thousands, except weighted average life in years). These amounts include additional payments associated with prior year acquisitions: Year ended August 28, 2021 Weighted Average Life in Years August 29, 2020 Weighted Average Life in Years Goodwill $ 4,533 N/A $ 23,544 N/A Customer contracts 3,219 10.0 12,697 14.1 Other intangible assets 179 5.0 594 5.3 Total intangible assets and goodwill acquired $ 7,931 $ 36,835 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 28, 2021, August 29, 2020 and August 31, 2019. The changes in the carrying amount of goodwill are as follows (in thousands): Balance as of August 31, 2019 $ 401,178 Goodwill recorded during the period 23,544 Other 122 Balance as of August 29, 2020 $ 424,844 Goodwill recorded during the period 4,533 Other 161 Balance as of August 28, 2021 $ 429,538 As of August 28, 2021, the Company has allocated $418.0 million, $10.9 million and $0.6 million of goodwill to its U.S. 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 28, 2021 Customer contracts $ 237,384 $ 188,255 $ 49,129 Software 74,475 40,763 33,712 Other intangible assets 36,866 35,069 1,797 $ 348,725 $ 264,087 $ 84,638 August 29, 2020 Customer contracts $ 234,065 $ 177,119 $ 56,946 Software 66,014 39,020 26,994 Other intangible assets 35,741 34,145 1,596 $ 335,820 $ 250,284 $ 85,536 Estimated amortization expense for the five fiscal years subsequent to August 28, 2021 and thereafter, based on intangible assets, net as of August 28, 2021 is as follows (in thousands): 2022 $ 13,466 2023 11,395 2024 10,046 2025 8,952 2026 7,865 Thereafter 32,914 Total estimated amortization expense $ 84,638 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Aug. 28, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | 9. Accrued Liabilities Accrued liabilities in the accompanying Consolidated Balance Sheet consists of the following (in thousands): August 28, 2021 August 29, 2020 Current liabilities: Payroll and benefit related $ 61,997 $ 46,789 Bonuses 17,693 13,803 Insurance related 34,314 34,403 Environmental related 12,279 11,172 Other 33,295 26,798 Total current liabilities $ 159,578 $ 132,965 Long-term liabilities: Benefit related 36,521 $ 38,744 Environmental related 20,580 19,530 Asset retirement obligations 14,887 13,920 Insurance related 62,097 60,626 Total long-term liabilities $ 134,085 $ 132,820 Total accrued liabilities $ 293,663 $ 265,785 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Aug. 28, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 10. Asset Retirement Obligations Asset retirement obligations generally result from 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-five 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 7.00% to 7.50% over approximately one to twenty-five 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 are 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 for fiscal 2021 and 2020 (in thousands): August 28, 2021 August 29, 2020 Beginning balance $ 13,920 $ 12,727 Accretion expense 985 929 Effect of exchange rate changes (18 ) 264 Ending balance $ 14,887 $ 13,920 The Company’s asset retirement obligations are included in current accrued liabilities in the accompanying Consolidated Balance Sheet. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 28, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Lease Commitments The Company has operating leases for certain operating facilities, vehicles and equipment, which provide the right to use the underlying asset and require lease payments over the term of the lease. Each new contract is evaluated to determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. All identified leases are recorded on the consolidated balance sheet with a corresponding operating lease right-of-use asset, net, representing the right to use the underlying asset for the lease term and the operating lease liabilities representing the obligation to make lease payments arising from the lease. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the consolidated balance sheet. Operating lease right-of-use assets, net and operating lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available as of the lease commencement date. Lease expense for operating leases is recorded on a straight-line basis over the lease term and variable lease costs are recorded as incurred. Both lease expense and variable lease costs are primarily recorded in cost of revenues on the Company's consolidated statements of income. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table presents the operating lease cost and information related to the operating lease right-of-use assets, net and operating lease liabilities for fiscal 2021: (In thousands, except lease term and discount rate) Lease cost Operating lease costs including short-term lease expense and variable lease costs, which were immaterial in the period $ 19,329 Operating cash flow impacts Cash paid for amounts included in the measurement of operating lease liabilities $ 13,629 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 13,592 Weighted-average remaining lease term - operating leases 4.09 Weighted-average discount rate - operating leases 2.28 % Total rent expense on all leases was $16.2 million, $15.2 million and $16.5 million for the fiscal 2021, 2020 and 2019, respectively. The contractual future minimum lease payments of Company's operating lease liabilities by fiscal year as of August 28, 2021 are as follows: (In thousands) 2022 $ 13,815 2023 11,489 2024 8,014 2025 5,284 2026 3,576 Thereafter 3,541 Total payments 45,719 Less interest 2,545 Total present value of lease payments $ 43,174 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 wastes and other substances. In particular, industrial laundries currently 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. The Company has settled, or contributed to the settlement of, past actions or claims brought against the Company relating to the disposal of hazardous materials at several sites 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. U.S. 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 certain sites. The Company has accrued certain costs related to certain sites, including but not limited to sites in Woburn and Somerville, Massachusetts, as it has been determined that the costs are probable and can be reasonably estimated. The Company, together with multiple other companies, is party to a consent decree related to its property and parcels of land (the “Central Area”) at a site in Woburn, Massachusetts. 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 consent decree does not address any remediation work that may be required 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 the EPA’s comments. Additionally, the Company has implemented mitigation measures and continues to monitor environmental conditions at the Somerville, Massachusetts site. The Company has received, responded, and agreed to undertake additional response actions pertaining to a notice of audit findings from the Massachusetts Department of Environmental Protection concerning a regulatory submittal that the Company made in 2009 for a portion of the site. 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 Somerville site. This station is part of an ongoing extension of the transit system. 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 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 U.S. 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 28, 2021, the risk-free interest rates utilized by the Company ranged from 1.31% to 1.91%. 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 fiscal 2021 and 2020 were as follows (in thousands): Year ended August 28, 2021 August 29, 2020 Beginning balance $ 30,702 $ 27,718 Costs incurred for which reserves have been provided (1,593 ) (1,160 ) Insurance proceeds 129 111 Interest accretion 448 537 Changes in discount rates (1,040 ) 1,133 Revisions in estimates 4,213 2,363 Ending balance $ 32,859 $ 30,702 Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of August 28, 2021, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below. (In thousands) 2022 2023 2024 2025 2026 Thereafter Total Estimated costs—current dollars $ 12,490 $ 2,530 $ 2,080 $ 1,366 $ 1,129 $ 12,712 $ 32,307 Estimated insurance proceeds (210 ) (159 ) (173 ) (159 ) (173 ) (380 ) (1,254 ) Net anticipated costs $ 12,280 $ 2,371 $ 1,907 $ 1,207 $ 956 $ 12,332 $ 31,053 Effect of inflation 7,912 Effect of discounting (6,106 ) Balance as of August 28, 2021 $ 32,859 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 two sites related to former operations. 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 28, 2021, 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 $4.7 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 one of its sites. The Company’s nuclear garment decontamination facilities are licensed by respective state agencies, as delegated authority by the Nuclear Regulatory Commission (the “NRC”) pursuant to the NRC’s Agreement State program and are subject to applicable federal and state radioactive material regulations. In addition, the Company’s international locations (Canada, the United Kingdom and the European Union) are regulated by equivalent respective jurisdictional authorities. There can be no assurance that such regulation will not lead to material disruptions in the Company’s garment decontamination business. During fiscal 2017, the Company recorded a pre-tax non-cash impairment charge of $55.8 million once it was determined that it was not probable that a Customer Relationship Management (“CRM”) system that was being developed would be completed and placed into service. On December 28, 2018, the Company entered into a settlement agreement with its lead contractor for the version of the CRM system with respect to which the Company recorded the impairment charge. As part of the settlement agreement, the Company recorded in the second quarter of fiscal 2019 a total gain of $21.1 million as a reduction of selling and administrative expenses, which includes the Company’s receipt of a one-time cash payment in the amount of $13.0 million as well as the forgiveness of amounts previously due the contractor. The Company also received hardware and related maintenance service with a fair value of $0.8 million as part of the settlement. 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 for the Company 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 U.S. GAAP. It is possible, however, that the future financial position and/or results of operations for any particular future 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 $67.5 million and $70.8 million outstanding as of August 28, 2021 and August 29, 2020, respectively. Non-cancellable purchase commitments for inventories, software, and services amounted to $65.5 million as of August 28, 2021, of which $46.2 million will be paid in less than 1 year, $11.7 million will be paid in 1 to 3 years, and the remaining will be paid in 3 to 8 years. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Aug. 28, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | 12. 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. 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 and performance shares (collectively referred to as “Share-Based Awards”) as well as dividend equivalent rights and cash-based awards. 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 28, 2021, the number of remaining shares available for future grants under the 2010 Plan was 251,713. Share-based compensation expense, which includes expense related to Share-Based Awards, 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 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. In fiscal 2019, a total of 291 shares of fully vested unrestricted stock were granted to certain non-employee Directors of the Company. No such shares were granted during each of fiscal 2021 and 2020. Accordingly, compensation expense related to the 2019 unrestricted stock was recognized on the date of grant. In each of fiscal 2021, 2020 and 2019, the Company granted a total of 5,000 stock appreciation rights 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. As of August 28, 2021, the total compensation cost not yet recognized related to non-vested Share-Based Awards was approximately $14.6 million. The weighted average period over which compensation cost for Share-Based Awards will be recognized is 1.9 years. All stock appreciation rights issued to employees were granted with an exercise price equal to the fair net realizable value of the Company’s Common Stock on the date of grant. Other than certain stock appreciation rights which vest 20% on each anniversary of the grant date over a five-year five-year Time-based restricted stock units granted to employees vest either 20% on each anniversary of the grant date over a five-year period, 33% on each anniversary of the grant date over a three-year five-year The fair value of each stock appreciation right 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 2021 2020 2019 Risk-free interest rate 0.47 % 1.69 % 3.07 % Expected dividend yield 0.58 % 0.50 % 0.48 % Expected life in years 5.70 5.60 7.24 Expected volatility 27.5 % 22.4 % 22.9 % The weighted average fair values of Share-Based Awards granted in the form of stock appreciation rights during fiscal years 2021, 2020 and 2019 were $42.63, $46.58 and $46.20, respectively. The following table summarizes the Share-Based Awards activity in the form of stock options and stock appreciation rights for fiscal 2021: Number of Shares Weighted Average Exercise Price Outstanding, August 29, 2020 494,933 $ 132.14 Granted 36,725 172.58 Exercised (117,693 ) 104.55 Forfeited (19,791 ) 133.66 Outstanding, August 28, 2021 394,174 $ 144.07 Exercisable, August 28, 2021 95,235 $ 121.59 The following table summarizes the Share-Based Awards activity in the form of restricted stock units for fiscal 2021: Number of Shares Weighted Average Grant Price Unvested balance at August 29, 2020 57,920 $ 183.90 Granted 44,993 174.42 Vested (5,929 ) 173.70 Forfeited (2,426 ) 196.15 Unvested balance at August 28, 2021 94,558 $ 178.78 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Aug. 28, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | 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. During fiscal 2019, 67,000 shares of Class B Common Stock were converted to Common Stock. No such conversions occurred during each of fiscal 2021 and 2020. On October 23, 2019, the Company announced that it would be raising its quarterly dividend to $0.25 per share for Common Stock and to $0.20 per share for Class B Common Stock, up from $0.1125 and $0.09 per share, respectively. The amount and timing of any future dividend payment is subject to the approval of the Board of Directors each quarter. On October 20, 2021, the Company announced that it would be raising its quarterly dividend to $0.30 per share for Common Stock and to $0.24 per share for Class B Common Stock, up from $0.25 and $0.20 per share, respectively. The amount and timing of any future dividend is subject to the approval of the Board of Directors each quarter. On January 2, 2019, the Company’s Board of Directors approved a share repurchase program authorizing the Company to repurchase from time to time up to $100.0 million of its outstanding shares of Common Stock. Repurchases made under the program, if any, will be made in either the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will depend on a variety of factors, including economic and market conditions, the Company stock price, corporate liquidity requirements and priorities, applicable legal requirements and other factors. The share repurchase program has been funded to date with available cash and may be funded in the future using the Company’s available cash or capacity under its 2021 Credit Agreement and may be suspended or discontinued at any time. During fiscal 2021, the Company repurchased 60,950 shares for an average price per share of $184.13. During fiscal 2020, the Company repurchased 117,767 shares for an average price per share of $184.67. During fiscal 2019, the Company repurchased 197,150 shares for an average price per share of $154.78. Currently, there is $36.5 million remaining to repurchase outstanding shares of Common Stock under this program. On October 20, 2021, the Company’s Board of Directors approved a new share repurchase program authorizing the Company to repurchase from time to time up to $100.0 million of its outstanding shares of Common Stock, inclusive of the amount which remained available under the existing share repurchase program approved on January 2, 2019. Repurchases made under the new program, if any, will continue to be made in either the open market or in privately negotiated transactions, subject to market conditions, applicable legal requirements, and other relevant factors. The timing, manner, price and amount of any repurchases will depend on a variety of factors and may be suspended or discontinued at any time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 28, 2021 | |
Stockholders Equity Note [Abstract] | |
Accumulated Other Comprehensive Loss | 14. Accumulated Other Comprehensive Loss The changes in each component of accumulated other comprehensive loss for fiscal 2021 and 2020 are as follows (in thousands): Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive Loss Balance as of August 31, 2019 $ (24,640 ) $ (9,239 ) $ 191 $ (33,688 ) Change during the year 2,631 (787 ) (126 ) 1,718 Balance as of August 29, 2020 (22,009 ) (10,026 ) 65 (31,970 ) Change during the year 4,208 2,960 (34 ) 7,134 Balance as of August 28, 2021 $ (17,801 ) $ (7,066 ) $ 31 $ (24,836 ) (1) Amounts are shown net of tax. Amounts reclassified from accumulated other comprehensive loss, net of tax, for fiscal 2021 and 2020 were as follows (in thousands): Year Ended August 28, 2021 Year Ended August 29, 2020 Pension benefit liabilities, net: Actuarial loss (gain) (a) $ (679 ) $ 233 Tax effect reclass — — Total, net of tax (679 ) 233 Derivative financial instruments, net: Forward contracts loss (gain) (b) (34 ) 151 Total, net of tax (34 ) 151 Total amounts reclassified, net of tax $ (713 ) $ 384 (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. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Aug. 28, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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: U.S. Rental and Cleaning, Canadian Rental and Cleaning, MFG, Specialty Garments, First Aid and Corporate. The U.S. Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the U.S. and Canadian Rental and Cleaning reporting segment, and as a result, the Company has five reporting segments. The U.S. 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 U.S. 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 U.S. 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 U.S. 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, procurement, supply chain, accounting and finance , 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 U.S. 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 U.S. 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 U.S. 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, provides certain safety training and maintains wholesale distribution and pill packaging operations. The Company refers to the U.S. 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 28, 2021 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,580,850 $ 264,021 $ (264,021 ) $ 34,710 $ 1,615,560 $ 145,454 $ 65,202 $ 1,826,216 Income (loss) from operations $ 290,774 $ 73,579 $ (283 ) $ (192,353 ) $ 171,717 $ 24,801 $ (693 ) $ 195,825 Interest (income) expense, net $ (2,760 ) $ — $ — $ 192 $ (2,568 ) $ — $ — $ (2,568 ) Income (loss) before taxes $ 293,357 $ 73,260 $ (283 ) $ (194,970 ) $ 171,364 $ 26,198 $ (691 ) $ 196,871 Depreciation and amortization $ 73,611 $ 2,530 $ — $ 23,190 $ 99,331 $ 4,510 $ 2,114 $ 105,955 Capital expenditures $ 129,327 $ 456 $ — $ — $ 129,783 $ 3,407 $ 449 $ 133,639 Total assets $ 2,179,243 $ 37,605 $ — $ — $ 2,216,848 $ 119,305 $ 44,912 $ 2,381,065 As of and for the year ended August 29, 2020 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,552,179 $ 214,683 $ (214,683 ) $ 49,306 $ 1,601,485 $ 133,185 $ 69,489 $ 1,804,159 Income (loss) from operations $ 247,392 $ 64,097 $ 10,012 $ (171,514 ) $ 149,987 $ 17,845 $ 4,897 $ 172,729 Interest income, net $ (3,741 ) $ — $ — $ (2,641 ) $ (6,382 ) $ — $ — $ (6,382 ) Income (loss) before taxes $ 251,088 $ 63,912 $ 10,012 $ (170,629 ) $ 154,383 $ 18,604 $ 4,901 $ 177,888 Depreciation and amortization $ 71,020 $ 2,404 $ — $ 24,983 $ 98,407 $ 4,335 $ 1,955 $ 104,697 Capital expenditures $ 110,024 $ 397 $ — $ — $ 110,421 $ 4,864 $ 1,432 $ 116,717 Total assets $ 1,992,546 $ 33,233 $ — $ — $ 2,025,779 $ 131,328 $ 41,920 $ 2,199,027 As of and for the year ended August 31, 2019 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,582,416 $ 254,218 $ (254,111 ) $ 33,682 $ 1,616,205 $ 132,767 $ 60,404 $ 1,809,376 Income (loss) from operations $ 235,046 $ 84,248 $ 1,128 $ (107,468 ) $ 212,954 $ 14,145 $ 4,909 $ 232,008 Interest (income) expense, net $ (4,105 ) $ — $ — $ (4,977 ) $ (9,082 ) $ — $ — $ (9,082 ) Income (loss) before taxes $ 239,122 $ 84,008 $ 1,128 $ (104,742 ) $ 219,516 $ 13,499 $ 4,909 $ 237,924 Depreciation and amortization $ 69,376 $ 2,384 $ — $ 25,098 $ 96,858 $ 4,759 $ 1,716 $ 103,333 Capital expenditures $ 115,071 $ 401 $ — $ — $ 115,472 $ 3,423 $ 920 $ 119,815 Total assets $ 1,865,713 $ 36,376 $ — $ — $ 1,902,089 $ 110,335 $ 34,896 $ 2,047,320 The Company’s long-lived assets as of August 28, 2021 and August 29, 2020 and revenues and income before income taxes for the years ended August 28, 2021, August 29, 2020 and August 31, 2019 were attributed to the following countries (in thousands): Long-lived assets as of: August 28, 2021 August 29, 2020 United States $ 1,219,760 $ 1,177,107 Europe, Canada, Mexico and Nicaragua (1) 57,513 52,586 Total $ 1,277,273 $ 1,229,693 Revenues for fiscal years: 2021 2020 2019 United States $ 1,672,530 $ 1,659,913 $ 1,683,321 Europe and Canada (1) 153,686 144,246 126,055 Total $ 1,826,216 $ 1,804,159 $ 1,809,376 Income before income taxes for fiscal years: 2021 2020 2019 United States $ 187,442 $ 175,301 $ 236,843 Europe, Canada, Mexico and Nicaragua (1) 9,429 2,587 1,081 Total $ 196,871 $ 177,888 $ 237,924 (1) No country accounts for greater than 10% of total long-lived assets, revenues or income before income taxes |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Aug. 28, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts and Reserves | Schedule II—Valuation and qualifying accounts and reserves for each of the three years in the period ended August 28, 2021 UNIFIRST CORPORATION AND SUBSIDIARIES SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR EACH OF THE THREE YEARS IN THE PERIOD ENDED AUGUST 28, 2021 (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 28, 2021 $ 12,125 $ 1,572 $ (2,575 ) $ 11,122 For the year ended August 29, 2020 $ 9,935 $ 6,027 $ (3,837 ) $ 12,125 For the year ended August 31, 2019 $ 9,237 $ 5,996 $ (5,298 ) $ 9,935 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 28, 2021 | |
Accounting Policies [Abstract] | |
Business Description | 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 as well as provide certain safety training, 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, manufacturers, maintenance facilities, restaurants and food-related businesses, business service companies, soft and durable goods wholesalers, transportation companies, energy producing operations, healthcare providers and others who require employee clothing on the job for image, identification, protection or utility purposes. The Company also provides its customers with restroom and cleaning supplies, including air fresheners, paper products, gloves, masks, hand soaps and sanitizers. 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: U.S. and Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate. The operations of the U.S. 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 U.S. and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its “Core Laundry Operations”. The COVID-19 pandemic had a significant adverse impact on the Company’s revenues in the second half of fiscal 2020 and the first half of fiscal 2021. In these consolidated financial statements and related disclosures, the Company has assessed the current impact of COVID-19 on its consolidated financial condition, results of operations, and cash flows, as well as the Company’s estimates and accounting policies. The Company has made additional disclosures of these assessments, as necessary. Given the unprecedented nature of the COVID-19 pandemic, including the emergence of new variants of the virus and delays in the distribution and administration of various vaccines, particularly in certain geographic regions, the Company cannot reasonably estimate the full extent or duration of the impact COVID-19 will have on its consolidated financial condition, results of operations, or cash flows in the foreseeable future. The ultimate impact of COVID-19 on the Company is highly uncertain and will depend on future developments, and such impacts could exist for an extended period of time, even after the COVID-19 pandemic subsides. |
Principles of Consolidation | 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. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. There have been no material changes in the accounting policies followed by the Company during the current fiscal year other than the adoption of recent accounting pronouncements as discussed in greater detail in the Recent Accounting Pronouncements sub-section of this Note. |
Use of Estimates | Use of Estimates The preparation of these Consolidated Financial Statements is in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. The Company utilizes key estimates in preparing the financial statements including casualty and environmental estimates, recoverability of goodwill, intangibles, income taxes and long-lived assets. These estimates are based on historical information, current trends, and information available from other sources. The Company’s results are affected by economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies, government policies surrounding the containment of COVID-19 and changes in the prices of raw materials, can have a significant effect on operations. These factors and other events could cause actual results to differ from management's estimates. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the last Saturday in August. For financial reporting purposes, fiscal years ended August 28, 2021 (“fiscal 2021”) and August 29, 2020 (“fiscal 2020”) both consisted of 52 weeks and |
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments include cash in banks, money market securities, and bank short-term investments having original maturities of twelve months or less. As of each of August 28, 2021 and August 29, 2020, the Company had no short-term investments. |
Accounts receivable | Accounts receivable Accounts receivable represents amounts due from customers and is presented net of reserves for expected credit losses. The Company utilizes its judgment and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the reserve for expected credit losses. The Company considers specific accounts receivable and historical credit loss experience, customer credit worthiness, current economic trends and the age of outstanding balances as part of its evaluation. When an account is considered uncollectible, it is written off against the reserve for expected credit losses. In response to the economic disruption created by the COVID-19 pandemic and the resulting impact on our customer base, the Company performed an additional evaluation of amounts due from customers in fiscal 2020 that were deemed to be higher collection risk. This evaluation resulted in a reserve for expected credit losses in excess of historical rates. The judgment applied to increase the reserve for expected credit losses beyond our historical policy was deemed to be reasonable and supportable based on the data available as of the consolidated balance sheet date. |
Financial Instruments | Financial Instruments The Company’s financial instruments, which may expose the Company to concentrations of credit risk, include cash, cash equivalents and short-term investments, receivables, accounts payable and foreign exchange forward contracts. Each of these financial instruments is recorded at cost, which approximates its fair value given the short maturity of each financial instrument. |
Revenue Recognition | Revenue Recognition Approximately 91.3% of the Company’s revenues are derived from fees for route servicing of Core Laundry Operations, Specialty Garments and First Aid services performed by the Company’s employees at the customer’s location of business. Revenues from the Company’s route servicing customer contracts represent a single-performance obligation. The Company recognizes these revenues over time as services are performed based on the nature of services provided and contractual rates (input method). Certain of the Company’s customer contracts, primarily within the Company’s Core Laundry Operations, include pricing terms and conditions that include components of variable consideration. The variable consideration is typically in the form of consideration due to a customer based on performance metrics specified within the contract. Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels. Each component of variable consideration is earned based on the Company’s actual performance during the measurement period specified within the contract. To determine the transaction price, the Company estimates the variable consideration using the most likely amount method, based on the specific contract provisions and known performance results during the relevant measurement period. When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal. The Company’s performance period generally corresponds with the monthly invoice period. No significant constraints on the Company’s revenue recognition were applied during fiscal 2021 . The Company reassesses these estimates during each reporting period. The Company maintains a liability for these discounts and rebates within accrued liabilities on the consolidated balance sheets. Variable consideration also includes consideration paid to a customer at the beginning of a contract. The Company capitalizes this consideration and amortizes it over the life of the contract as a reduction to revenue in accordance with the accounting guidance for revenue recognition. These assets are included in other assets on the consolidated balance sheets. The following table presents the Company’s revenues for fiscal 2021, 2020, and 2019 disaggregated by service type: Years ended August 28, 2021 August 29, 2020 August 31, 2019 (In thousands, except percentages) Revenues % of Revenues Revenues % of Revenues Revenues % of Revenues Core Laundry Operations $ 1,615,560 88.5 % $ 1,601,485 88.8 % $ 1,616,205 89.3 % Specialty Garments 145,454 8.0 % 133,185 7.4 % 132,767 7.3 % First Aid 65,202 3.5 % 69,489 3.8 % 60,404 3.4 % Total Revenues $ 1,826,216 100.0 % $ 1,804,159 100.0 % $ 1,809,376 100.0 % During fiscal 2021, 2020 and 2019 the percentage of revenues recognized over time as the services are performed was 95.8%, 94.7% and 95.8% of Core Laundry Operations revenues, respectively, and 81.8%, 79.2% and 82.7% of Specialty Garments revenues, respectively. During fiscal 2021, 2020 and 2019 4.2%, 5.3% and 4.2% of Core Laundry Operations revenues, respectively, 18.2%, 20.8% and 17.3% of Specialty Garments revenues, respectively, and 100% of First Aid revenues were recognized at a point in time, which generally occurs when the goods are transferred to the customer. |
Costs to Obtain a Contract | Costs to Obtain a Contract The Company defers commission expenses paid to its employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract. The deferred commissions are amortized on a straight-line basis over the expected period of benefit. The Company reviews the deferred commission balances for impairment on an ongoing basis. Deferred commissions are classified as current or noncurrent based on the timing of when the Company expects to recognize the expense. The current portion is included in prepaid expenses and other current assets and the non-current portion is included in other assets on the Company’s consolidated balance sheets. As of August 28, 2021, the current and non-current assets related to deferred commissions totaled $14.2 million and $60.6 million, respectively. As of August 29, 2020, the current and non-current assets related to deferred commissions totaled $13.3 million and $55.6 million, respectively. During fiscal 2021 and 2020, we recorded $14.4 million and $13.7 million, respectively, of amortization expense related to deferred commissions. This amortization expense is classified in selling and administrative expenses on the consolidated statements of income. |
Inventories and Rental Merchandise in Service | Inventories and Rental Merchandise in Service Inventories are stated at the lower of cost or net realizable value, net of any reserve for excess and obsolete inventory. Work-in-process and finished goods inventories consist of materials, labor and manufacturing overhead. 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 28, 2021 and August 29, 2020 were as follows (in thousands): August 28, 2021 August 29, 2020 Raw materials $ 24,846 $ 20,266 Work in process 4,703 2,730 Finished goods 114,042 83,273 Total inventory $ 143,591 $ 106,269 Rental merchandise in service is amortized, primarily on a straight-line basis, over the estimated service lives of the merchandise, which range from six to thirty-six months. The amortization expense is included in the cost of revenues on the Company’s Consolidated Statements of Income. 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 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 28, 2021 and August 29, 2020 were as follows (in thousands): August 28, 2021 August 29, 2020 Land, buildings and leasehold equipment $ 618,910 $ 558,277 Machinery and equipment 595,081 585,211 Motor vehicles 285,543 278,098 1,499,534 1,421,586 Less: accumulated depreciation 881,815 839,116 Total property, plant and equipment $ 617,719 $ 582,470 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 were no material impairments of long-lived assets in fiscal 2021, 2020 and 2019. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In accordance with U.S. GAAP, the Company does not amortize goodwill. Instead, the Company tests goodwill for impairment on an annual basis. Management completed its annual goodwill impairment test on the last day of the fourth quarter of each fiscal year prior to fiscal 2020. In fiscal 2020, the Company changed its annual goodwill impairment test date to the first day of the fourth quarter to better align with its internal business processes. In addition, U.S. 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 used the qualitative assessment option for its impairment testing for goodwill in fiscal 2021 and determined that the fair values of the reporting units more likely than not exceeded their carrying values and that there was no evidence of impairment as of May 30, 2021. The Company cannot predict future economic conditions and their impact on the Company or the future net realizable 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 U.S. GAAP. There were no impairments of goodwill or indicators of impairment for definite-lived intangible assets in fiscal 2021, 2020 or 2019. As of August 28, 2021, definite-lived intangible assets have a weighted average useful life of approximately 11.9 years. Customer contracts have a weighted average useful life of approximately 13.5 years and other intangible assets, net, which consist of primarily, restrictive covenants, software and trademarks, have a weighted average useful life of approximately 9.6 years. |
Environmental and Other Contingencies | 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 28, 2021 using risk-free interest rates ranging from 1.31% to 1.91% 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 | Asset Retirement Obligations Under U.S. 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-five 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 7.00% to 7.50%. 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 are 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 | 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 for health, workers’ compensation, vehicles and general liability programs 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, the Company estimates the portion of the liability that will be covered by existing insurance policies to arrive at its 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 | 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 | 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. Deferred tax assets and liabilities are determined by the differences between the consolidated financial statement carrying amounts and the tax basis of assets and liabilities. See Note 4, “Income Taxes” in these Consolidated Financial Statements for the types of items that give rise to significant deferred income tax assets and liabilities. Deferred income taxes are classified as assets or liabilities based on the classification of the related asset or liability for financial reporting purposes. The Company regularly reviews deferred tax assets for recoverability based upon projected future taxable income and the expected timing of the reversals of existing temporary differences. Although realization is not assured, management believes it is more likely than not that the recorded deferred tax assets will be realized. 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 . |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are classified as selling and administrative expenses. The Company incurred advertising costs of $3.5 million, $3.8 million and $3.6 million, for fiscal 2021, 2020 and 2019, respectively. |
Share-Based Compensation | Share-Based Compensation Compensation expense for all stock options, stock appreciation rights, unrestricted stock and restricted stock units (collectively, “Share-Based Awards”) is recognized ratably over the related vesting period, net of actual forfeitures. Certain Share-Based Awards in the form of stock appreciation rights and shares of unrestricted stock were granted during fiscal 2021, 2020 and 2019 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 in fiscal 2021, 2020 and 2019 was recognized on the date of grant. For performance-based restricted stock unit awards with revenue and earnings per share performance criteria , we evaluate the probability of meeting the performance criteria at each balance sheet date and , if probable, related compensation cost is amortized over the performance period on a straight-line basis because such awards vest only at the end of the measurement period. Changes to the probability assessment and the estimate of shares expected to vest will result in adjustments to the related share-based compensation expense that will be recorded in the period of the change. If the performance targets are not achieved, no compensation cost is recognized and any previously recognized compensation cost is reversed. U.S. GAAP requires that share-based compensation cost be measured at the grant date based on the fair 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 in the form of stock appreciation rights at the grant date requires judgment, including estimating expected dividends and share price volatility. The fair value of each Share-Based Award in the form of stock appreciation rights is estimated on the date of grant using the Black-Scholes option pricing model. The Company recognizes compensation expense for restricted stock and restricted stock unit grants over the related vesting period. The fair value for each restricted stock, unrestricted stock and restricted stock unit 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. |
Income Per Share | Income Per Share The Company calculates income per share by allocating income to its unvested participating securities as part of its income per share 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 income 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 income 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 28, 2021 August 29, 2020 August 31, 2019 Net income available to shareholders $ 151,111 $ 135,770 $ 179,134 Allocation of net income for Basic: Common Stock $ 126,848 $ 114,017 $ 150,247 Class B Common Stock 24,263 21,753 28,887 $ 151,111 $ 135,770 $ 179,134 Weighted average number of shares for Basic: Common Stock 15,237 15,276 15,385 Class B Common Stock 3,643 3,643 3,697 18,880 18,919 19,082 Income per share for Basic: Common Stock $ 8.32 $ 7.46 $ 9.77 Class B Common Stock $ 6.66 $ 5.97 $ 7.81 The Company is required to calculate the diluted income per share 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 fiscal 2021, 2020 and 2019, the Company’s diluted income per share assumes the conversion of all Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares. The following table sets forth the computation of diluted income per share of Common Stock for the years ended August 28, 2021 , August 29, 2020 and August 31, 2019 (in thousands, except per share data): Year Ended August 28, 2021 Year Ended August 29, 2020 Year Ended August 31, 2019 Earnings to Common shareholders Common Shares Income Per Share Earnings to Common shareholders Common Shares Income Per Share Earnings to Common shareholders Common Shares Income Per Share As reported—Basic $ 126,848 15,237 $ 8.32 $ 114,017 15,276 $ 7.46 $ 150,247 15,385 $ 9.77 Add: effect of dilutive potential common shares Share-Based Awards — 158 — 123 — 114 Class B Common Stock 24,263 3,643 21,753 3,643 28,887 3,697 Diluted Income Per Share— Common Stock $ 151,111 19,038 $ 7.94 $ 135,770 19,042 $ 7.13 $ 179,134 19,196 $ 9.33 Share-Based Awards that would result in the issuance of 6,005, 8,094 and 8,325 shares, respectively, of Common Stock were excluded from the calculation of diluted earnings per share for fiscal 2021, 2020 and 2019 because they were anti-dilutive. |
Foreign Currency Translation | 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 expense, net 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 in the accompanying Consolidated Balance Sheets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued updated guidance that introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments including trade receivables. The estimate of expected credit losses will require entities to incorporate historical information, current information and reasonable and supportable forecasts. This guidance also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2019 with early adoption permitted. Accordingly, the guidance was effective for the Company on August 30, 2020. The Company’s adoption of this guidance on August 30, 2020 did not have a material impact on its financial statements. In August 2018, the FASB issued updated guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance will be effective for annual reporting periods ending after December 15, 2020 and will be required to be applied on a retrospective basis with early adoption permitted. Accordingly, this standard is effective for the Company on August 29, 2021. The Company’s adoption of this guidance on August 29, 2021 did not have a material impact on its financial statements or related disclosures. In August 2018, the FASB issued guidance that addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. This guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2019 with early adoption permitted. The amendments in this update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Accordingly, the guidance was effective for the Company on August 30, 2020. The Company’s adoption of this guidance on August 30, 2020 did not have a material impact on its financial statements. In December 2019, the FASB issued updated guidance to simplify accounting for income taxes by removing certain exceptions and improving the consistent application of and simplifying U.S. GAAP in other areas of this topic. This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2020 with early adoption permitted. Accordingly, the guidance will be effective for the Company on August 2 7 , 202 2 . The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Total Revenue Disaggregated by Service Type | The following table presents the Company’s revenues for fiscal 2021, 2020, and 2019 disaggregated by service type: Years ended August 28, 2021 August 29, 2020 August 31, 2019 (In thousands, except percentages) Revenues % of Revenues Revenues % of Revenues Revenues % of Revenues Core Laundry Operations $ 1,615,560 88.5 % $ 1,601,485 88.8 % $ 1,616,205 89.3 % Specialty Garments 145,454 8.0 % 133,185 7.4 % 132,767 7.3 % First Aid 65,202 3.5 % 69,489 3.8 % 60,404 3.4 % Total Revenues $ 1,826,216 100.0 % $ 1,804,159 100.0 % $ 1,809,376 100.0 % |
Schedule of Components of Inventory | The components of inventory as of August 28, 2021 and August 29, 2020 were as follows (in thousands): August 28, 2021 August 29, 2020 Raw materials $ 24,846 $ 20,266 Work in process 4,703 2,730 Finished goods 114,042 83,273 Total inventory $ 143,591 $ 106,269 |
Schedule of Components of Property, Plant and Equipment | The components of property, plant and equipment as of August 28, 2021 and August 29, 2020 were as follows (in thousands): August 28, 2021 August 29, 2020 Land, buildings and leasehold equipment $ 618,910 $ 558,277 Machinery and equipment 595,081 585,211 Motor vehicles 285,543 278,098 1,499,534 1,421,586 Less: accumulated depreciation 881,815 839,116 Total property, plant and equipment $ 617,719 $ 582,470 |
Schedule of Useful Lives of Property, Plant and Equipment | 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 |
Schedule of Computation of Basic Income Per Share | The following table sets forth the computation of basic income 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 28, 2021 August 29, 2020 August 31, 2019 Net income available to shareholders $ 151,111 $ 135,770 $ 179,134 Allocation of net income for Basic: Common Stock $ 126,848 $ 114,017 $ 150,247 Class B Common Stock 24,263 21,753 28,887 $ 151,111 $ 135,770 $ 179,134 Weighted average number of shares for Basic: Common Stock 15,237 15,276 15,385 Class B Common Stock 3,643 3,643 3,697 18,880 18,919 19,082 Income per share for Basic: Common Stock $ 8.32 $ 7.46 $ 9.77 Class B Common Stock $ 6.66 $ 5.97 $ 7.81 |
Schedule of Computation of Diluted Income Per Share | The following table sets forth the computation of diluted income per share of Common Stock for the years ended August 28, 2021 , August 29, 2020 and August 31, 2019 (in thousands, except per share data): Year Ended August 28, 2021 Year Ended August 29, 2020 Year Ended August 31, 2019 Earnings to Common shareholders Common Shares Income Per Share Earnings to Common shareholders Common Shares Income Per Share Earnings to Common shareholders Common Shares Income Per Share As reported—Basic $ 126,848 15,237 $ 8.32 $ 114,017 15,276 $ 7.46 $ 150,247 15,385 $ 9.77 Add: effect of dilutive potential common shares Share-Based Awards — 158 — 123 — 114 Class B Common Stock 24,263 3,643 21,753 3,643 28,887 3,697 Diluted Income Per Share— Common Stock $ 151,111 19,038 $ 7.94 $ 135,770 19,042 $ 7.13 $ 179,134 19,196 $ 9.33 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Business Combinations [Abstract] | |
Schedule of Acquisition of Business | 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 28, 2021 August 29, 2020 August 31, 2019 Number of businesses acquired 8 8 6 Tangible assets acquired $ 812 $ 6,370 $ 322 Goodwill 4,533 23,544 3,929 Customer contracts 3,219 12,697 1,344 Other intangible assets 179 594 118 Liabilities assumed — (1,872 ) — Acquisition of businesses $ 8,743 $ 41,333 $ 5,713 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets or Liabilities Measured at Fair Value on a Recurring Basis | The assets or liabilities measured at fair value on a recurring basis are summarized in the tables below (in thousands): As of August 28, 2021 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 197,081 $ — $ — $ 197,081 Pension plan assets — 3,795 — 3,795 Foreign currency forward contracts — 41 — 41 Total assets at fair value $ 197,081 $ 3,836 $ — $ 200,917 As of August 29, 2020 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 196,478 $ — $ — $ 196,478 Pension plan assets — 4,146 — 4,146 Foreign currency forward contracts — 87 — 87 Total assets at fair value $ 196,478 $ 4,233 $ — $ 200,711 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Provision / (Benefit) for Income Taxes | The provision / (benefit) for income taxes consists of the following (in thousands): Fiscal year 2021 2020 2019 Current: Federal $ 35,267 $ 40,084 $ 38,545 Foreign 1,714 1,589 (200 ) State 9,873 12,865 11,733 Total current $ 46,854 $ 54,538 $ 50,078 Deferred: Federal $ (1,421 ) $ (8,522 ) $ 7,289 Foreign 848 (599 ) 645 State (521 ) (3,299 ) 778 Total deferred $ (1,094 ) $ (12,420 ) $ 8,712 Total $ 45,760 $ 42,118 $ 58,790 |
Reconciliation of Provision for Income Taxes | The following table reconciles the provision for income taxes using the statutory federal income tax rate to the actual provision for income taxes: Fiscal year 2021 2020 2019 Income taxes at the statutory federal income tax rate 21.0 % 21.0 % 21.0 % State income taxes 4.2 4.4 4.3 Other (2.0 ) (1.7 ) (0.6 ) Total 23.2 % 23.7 % 24.7 % |
Components of Deferred Income Taxes | The components of deferred income taxes included on the consolidated balance sheets are as follows (in thousands): August 28, 2021 August 29, 2020 Deferred Tax Assets Payroll and benefit related $ 21,893 $ 17,451 Insurance related 14,042 13,790 Environmental 8,408 7,856 Accrued expenses 10,134 6,270 Operating lease liabilities 9,214 8,720 Other 8,127 7,536 Total deferred tax assets $ 71,818 $ 61,623 Deferred Tax Liabilities Payroll and benefit related $ 19,474 $ 17,722 Tax in excess of book depreciation 40,725 41,713 Purchased intangible assets 36,183 32,892 Rental merchandise in service 45,432 38,846 Operating lease right-of-use assets 8,984 8,952 Other 157 191 Total deferred tax liabilities 150,955 140,316 Net deferred tax liability $ 79,137 $ 78,693 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance at August 31, 2019 $ 7,668 Additions based on tax positions related to the current year 475 Additions for tax positions of prior years (1,389 ) Statute expirations (424 ) Balance at August 29, 2020 6,330 Additions based on tax positions related to the current year 637 Additions for tax positions of prior years 3,552 Reduction for tax positions of prior years (287 ) Statute expirations (911 ) Balance at August 28, 2021 $ 9,321 |
Employee Benefit Plans (Tables
Employee Benefit Plans (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Postemployment Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost related to the Company’s Pension Plans and SERP for fiscal 2021, 2020 and 2019 were as follows (in thousands): Pension Plans SERP 2021 2020 2019 2021 2020 2019 Service cost $ 71 $ 113 $ 114 $ 1,100 $ 918 $ 725 Interest cost 104 131 260 943 1,027 1,148 Expected return on assets (131 ) (138 ) (199 ) — — — Amortization of prior service cost 55 66 66 — — — Amortization of net loss 36 12 51 821 703 247 Other events 49 — 503 — — — Net periodic benefit cost $ 184 $ 184 $ 795 $ 2,864 $ 2,648 $ 2,120 |
Schedule of Obligations and Funded Status | The Company’s obligations and funded status related to its Pension Plans and SERP as of August 28, 2021 and August 29, 2020 were as follows (in thousands): Pension Plans SERP 2021 2020 2021 2020 Change in benefit obligation: Projected benefit obligation, beginning of year $ 5,468 $ 5,566 $ 38,616 $ 35,967 Service cost 71 113 1,100 918 Interest cost 104 131 943 1,027 Actuarial (gain) loss (225 ) 169 (2,890 ) 1,658 Benefits paid (28 ) (224 ) (1,125 ) (954 ) Settlements (355 ) (287 ) — — Projected benefit obligation, end of year $ 5,035 $ 5,468 $ 36,644 $ 38,616 Change in plan assets: Fair value of plan assets, beginning of year $ 4,146 $ 4,603 $ — $ — Actual return on plan assets 33 54 — — Employer contributions — — — — Benefits paid (28 ) (224 ) — — Settlements (355 ) (287 ) — — Fair value of plan assets, end of year $ 3,796 $ 4,146 $ — $ — Funded status (net amount recognized): $ (1,239 ) $ (1,322 ) $ (36,644 ) $ (38,616 ) |
Schedule of Amounts Recorded on Consolidated Balance Sheet | The amounts recorded on the Consolidated Balance Sheet for the Company’s Pension Plans and SERP as of August 28, 2021 and August 29, 2020 were as follows (in thousands): Pension Plans SERP 2021 2020 2021 2020 Deferred tax assets $ 213 $ 279 $ 2,218 $ 3,144 Accrued liabilities $ 1,240 $ 1,322 $ 36,644 $ 38,616 Accumulated other comprehensive loss $ (1,044 ) $ (819 ) $ (6,449 ) $ (9,234 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | As of August 28, 2021 and August 29, 2020, the amounts recognized in accumulated other comprehensive loss for the Company’s Pension Plans and SERP were as follows (in thousands): Pension Plans SERP 2021 2020 2021 2020 Net actuarial gain (loss) $ (1,180 ) $ (1,011 ) $ (6,449 ) $ (9,234 ) Unrecognized prior service cost 136 192 — — Accumulated other comprehensive loss $ (1,044 ) $ (819 ) $ (6,449 ) $ (9,234 ) |
Weighted Average Assumptions Used in Calculating Projected Benefit Obligation | The weighted average assumptions used in calculating the Company’s projected benefit obligation as of August 28, 2021 and August 29, 2020, were as follows: Pension Plans SERP 2021 2020 2021 2020 Discount rate 2.3 % 2.0 % 2.6 % 2.5 % Rate of compensation increase N/A N/A 5.0 % 5.0 % |
Weighted Average Assumptions Used in Calculating Net Periodic Service Cost | The weighted average assumptions used in calculating the Company’s net periodic service cost for the years ended August 28, 2021, August 29, 2020 and August 31, 2019, were as follows: Pension Plans SERP 2021 2020 2019 2021 2020 2019 Discount rate 2.0 % 2.7 % 3.8 % 2.5 % 2.9 % 4.0 % Expected return on plan assets 3.5 % 3.5 % 3.5 % 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 Future Benefit Payments | The benefit payments, which reflect expected future service, that are expected to be paid for the five fiscal years subsequent to August 28, 2021 and thereafter are as follows (in thousands): Pension Plans SERP 2022 $ 795 $ 1,362 2023 269 1,362 2024 250 1,549 2025 360 1,611 2026 377 1,750 Thereafter 2,984 29,010 Total benefit payments $ 5,035 $ 36,644 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Intangible Assets and Goodwill | These amounts include additional payments associated with prior year acquisitions: Year ended August 28, 2021 Weighted Average Life in Years August 29, 2020 Weighted Average Life in Years Goodwill $ 4,533 N/A $ 23,544 N/A Customer contracts 3,219 10.0 12,697 14.1 Other intangible assets 179 5.0 594 5.3 Total intangible assets and goodwill acquired $ 7,931 $ 36,835 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows (in thousands): Balance as of August 31, 2019 $ 401,178 Goodwill recorded during the period 23,544 Other 122 Balance as of August 29, 2020 $ 424,844 Goodwill recorded during the period 4,533 Other 161 Balance as of August 28, 2021 $ 429,538 |
Schedule of Intangible Assets, Net | 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 28, 2021 Customer contracts $ 237,384 $ 188,255 $ 49,129 Software 74,475 40,763 33,712 Other intangible assets 36,866 35,069 1,797 $ 348,725 $ 264,087 $ 84,638 August 29, 2020 Customer contracts $ 234,065 $ 177,119 $ 56,946 Software 66,014 39,020 26,994 Other intangible assets 35,741 34,145 1,596 $ 335,820 $ 250,284 $ 85,536 |
Schedule of Estimated Future Amortization Expense | Estimated amortization expense for the five fiscal years subsequent to August 28, 2021 and thereafter, based on intangible assets, net as of August 28, 2021 is as follows (in thousands): 2022 $ 13,466 2023 11,395 2024 10,046 2025 8,952 2026 7,865 Thereafter 32,914 Total estimated amortization expense $ 84,638 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities in the accompanying Consolidated Balance Sheet consists of the following (in thousands): August 28, 2021 August 29, 2020 Current liabilities: Payroll and benefit related $ 61,997 $ 46,789 Bonuses 17,693 13,803 Insurance related 34,314 34,403 Environmental related 12,279 11,172 Other 33,295 26,798 Total current liabilities $ 159,578 $ 132,965 Long-term liabilities: Benefit related 36,521 $ 38,744 Environmental related 20,580 19,530 Asset retirement obligations 14,887 13,920 Insurance related 62,097 60,626 Total long-term liabilities $ 134,085 $ 132,820 Total accrued liabilities $ 293,663 $ 265,785 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Rollforward of Asset Retirement Liability | A rollforward of the Company’s asset retirement liability is as follows for fiscal 2021 and 2020 (in thousands): August 28, 2021 August 29, 2020 Beginning balance $ 13,920 $ 12,727 Accretion expense 985 929 Effect of exchange rate changes (18 ) 264 Ending balance $ 14,887 $ 13,920 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Cost and Information Related to Operating Lease Right-of-use Assets, Net and Operating Lease Liabilities | The following table presents the operating lease cost and information related to the operating lease right-of-use assets, net and operating lease liabilities for fiscal 2021: (In thousands, except lease term and discount rate) Lease cost Operating lease costs including short-term lease expense and variable lease costs, which were immaterial in the period $ 19,329 Operating cash flow impacts Cash paid for amounts included in the measurement of operating lease liabilities $ 13,629 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 13,592 Weighted-average remaining lease term - operating leases 4.09 Weighted-average discount rate - operating leases 2.28 % |
Schedule of Contractual Future Minimum Lease Payments of Operating Lease Liabilities | The contractual future minimum lease payments of Company's operating lease liabilities by fiscal year as of August 28, 2021 are as follows: (In thousands) 2022 $ 13,815 2023 11,489 2024 8,014 2025 5,284 2026 3,576 Thereafter 3,541 Total payments 45,719 Less interest 2,545 Total present value of lease payments $ 43,174 |
Schedule of Changes to Environmental Liabilities | The changes to the Company’s environmental liabilities for fiscal 2021 and 2020 were as follows (in thousands): Year ended August 28, 2021 August 29, 2020 Beginning balance $ 30,702 $ 27,718 Costs incurred for which reserves have been provided (1,593 ) (1,160 ) Insurance proceeds 129 111 Interest accretion 448 537 Changes in discount rates (1,040 ) 1,133 Revisions in estimates 4,213 2,363 Ending balance $ 32,859 $ 30,702 |
Schedule of Anticipated Payments and Insurance Proceeds of Currently Identified Environmental Remediation Liabilities | Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of August 28, 2021, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below. (In thousands) 2022 2023 2024 2025 2026 Thereafter Total Estimated costs—current dollars $ 12,490 $ 2,530 $ 2,080 $ 1,366 $ 1,129 $ 12,712 $ 32,307 Estimated insurance proceeds (210 ) (159 ) (173 ) (159 ) (173 ) (380 ) (1,254 ) Net anticipated costs $ 12,280 $ 2,371 $ 1,907 $ 1,207 $ 956 $ 12,332 $ 31,053 Effect of inflation 7,912 Effect of discounting (6,106 ) Balance as of August 28, 2021 $ 32,859 |
Share-based Compensation (Tabl
Share-based Compensation (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Weighted Average Assumptions | The fair value of each stock appreciation right 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 2021 2020 2019 Risk-free interest rate 0.47 % 1.69 % 3.07 % Expected dividend yield 0.58 % 0.50 % 0.48 % Expected life in years 5.70 5.60 7.24 Expected volatility 27.5 % 22.4 % 22.9 % |
Summary of Share-Based Award Activity for Stock Options and Stock Appreciation Rights | The following table summarizes the Share-Based Awards activity in the form of stock options and stock appreciation rights for fiscal 2021: Number of Shares Weighted Average Exercise Price Outstanding, August 29, 2020 494,933 $ 132.14 Granted 36,725 172.58 Exercised (117,693 ) 104.55 Forfeited (19,791 ) 133.66 Outstanding, August 28, 2021 394,174 $ 144.07 Exercisable, August 28, 2021 95,235 $ 121.59 |
Summary of Share-Based Award Activity for Restricted Stock Units | The following table summarizes the Share-Based Awards activity in the form of restricted stock units for fiscal 2021: Number of Shares Weighted Average Grant Price Unvested balance at August 29, 2020 57,920 $ 183.90 Granted 44,993 174.42 Vested (5,929 ) 173.70 Forfeited (2,426 ) 196.15 Unvested balance at August 28, 2021 94,558 $ 178.78 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Stockholders Equity Note [Abstract] | |
Schedule of Changes in Components of Accumulated Other Comprehensive Loss | The changes in each component of accumulated other comprehensive loss for fiscal 2021 and 2020 are as follows (in thousands): Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive Loss Balance as of August 31, 2019 $ (24,640 ) $ (9,239 ) $ 191 $ (33,688 ) Change during the year 2,631 (787 ) (126 ) 1,718 Balance as of August 29, 2020 (22,009 ) (10,026 ) 65 (31,970 ) Change during the year 4,208 2,960 (34 ) 7,134 Balance as of August 28, 2021 $ (17,801 ) $ (7,066 ) $ 31 $ (24,836 ) (1) Amounts are shown net of tax. |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Loss, Net of Tax | Amounts reclassified from accumulated other comprehensive loss, net of tax, for fiscal 2021 and 2020 were as follows (in thousands): Year Ended August 28, 2021 Year Ended August 29, 2020 Pension benefit liabilities, net: Actuarial loss (gain) (a) $ (679 ) $ 233 Tax effect reclass — — Total, net of tax (679 ) 233 Derivative financial instruments, net: Forward contracts loss (gain) (b) (34 ) 151 Total, net of tax (34 ) 151 Total amounts reclassified, net of tax $ (713 ) $ 384 (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. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Aug. 28, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company refers to the U.S. 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 28, 2021 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,580,850 $ 264,021 $ (264,021 ) $ 34,710 $ 1,615,560 $ 145,454 $ 65,202 $ 1,826,216 Income (loss) from operations $ 290,774 $ 73,579 $ (283 ) $ (192,353 ) $ 171,717 $ 24,801 $ (693 ) $ 195,825 Interest (income) expense, net $ (2,760 ) $ — $ — $ 192 $ (2,568 ) $ — $ — $ (2,568 ) Income (loss) before taxes $ 293,357 $ 73,260 $ (283 ) $ (194,970 ) $ 171,364 $ 26,198 $ (691 ) $ 196,871 Depreciation and amortization $ 73,611 $ 2,530 $ — $ 23,190 $ 99,331 $ 4,510 $ 2,114 $ 105,955 Capital expenditures $ 129,327 $ 456 $ — $ — $ 129,783 $ 3,407 $ 449 $ 133,639 Total assets $ 2,179,243 $ 37,605 $ — $ — $ 2,216,848 $ 119,305 $ 44,912 $ 2,381,065 As of and for the year ended August 29, 2020 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,552,179 $ 214,683 $ (214,683 ) $ 49,306 $ 1,601,485 $ 133,185 $ 69,489 $ 1,804,159 Income (loss) from operations $ 247,392 $ 64,097 $ 10,012 $ (171,514 ) $ 149,987 $ 17,845 $ 4,897 $ 172,729 Interest income, net $ (3,741 ) $ — $ — $ (2,641 ) $ (6,382 ) $ — $ — $ (6,382 ) Income (loss) before taxes $ 251,088 $ 63,912 $ 10,012 $ (170,629 ) $ 154,383 $ 18,604 $ 4,901 $ 177,888 Depreciation and amortization $ 71,020 $ 2,404 $ — $ 24,983 $ 98,407 $ 4,335 $ 1,955 $ 104,697 Capital expenditures $ 110,024 $ 397 $ — $ — $ 110,421 $ 4,864 $ 1,432 $ 116,717 Total assets $ 1,992,546 $ 33,233 $ — $ — $ 2,025,779 $ 131,328 $ 41,920 $ 2,199,027 As of and for the year ended August 31, 2019 US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total Revenues $ 1,582,416 $ 254,218 $ (254,111 ) $ 33,682 $ 1,616,205 $ 132,767 $ 60,404 $ 1,809,376 Income (loss) from operations $ 235,046 $ 84,248 $ 1,128 $ (107,468 ) $ 212,954 $ 14,145 $ 4,909 $ 232,008 Interest (income) expense, net $ (4,105 ) $ — $ — $ (4,977 ) $ (9,082 ) $ — $ — $ (9,082 ) Income (loss) before taxes $ 239,122 $ 84,008 $ 1,128 $ (104,742 ) $ 219,516 $ 13,499 $ 4,909 $ 237,924 Depreciation and amortization $ 69,376 $ 2,384 $ — $ 25,098 $ 96,858 $ 4,759 $ 1,716 $ 103,333 Capital expenditures $ 115,071 $ 401 $ — $ — $ 115,472 $ 3,423 $ 920 $ 119,815 Total assets $ 1,865,713 $ 36,376 $ — $ — $ 1,902,089 $ 110,335 $ 34,896 $ 2,047,320 |
Schedule of Long-lived Assets | The Company’s long-lived assets as of August 28, 2021 and August 29, 2020 and revenues and income before income taxes for the years ended August 28, 2021, August 29, 2020 and August 31, 2019 were attributed to the following countries (in thousands): Long-lived assets as of: August 28, 2021 August 29, 2020 United States $ 1,219,760 $ 1,177,107 Europe, Canada, Mexico and Nicaragua (1) 57,513 52,586 Total $ 1,277,273 $ 1,229,693 |
Schedule of Revenues and Income Before Income Taxes | Revenues for fiscal years: 2021 2020 2019 United States $ 1,672,530 $ 1,659,913 $ 1,683,321 Europe and Canada (1) 153,686 144,246 126,055 Total $ 1,826,216 $ 1,804,159 $ 1,809,376 Income before income taxes for fiscal years: 2021 2020 2019 United States $ 187,442 $ 175,301 $ 236,843 Europe, Canada, Mexico and Nicaragua (1) 9,429 2,587 1,081 Total $ 196,871 $ 177,888 $ 237,924 (1) No country accounts for greater than 10% of total long-lived assets, revenues or income before income taxes |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Aug. 28, 2021USD ($)segmentshares | Aug. 29, 2020USD ($)shares | Aug. 31, 2019USD ($)shares | Aug. 31, 2019 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Number of reporting segments | segment | 5 | |||
Short-term investments | $ 0 | $ 0 | ||
Percentage of revenues derived from route servicing fees | 91.30% | |||
Current assets related to deferred commissions | $ 14,200,000 | 13,300,000 | ||
Noncurrent assets related to deferred commissions | 60,600,000 | 55,600,000 | ||
Amortization expense related to deferred commissions | $ 14,400,000 | 13,700,000 | ||
Estimated service lives of rental merchandise, minimum | 6 months | |||
Estimated service lives of rental merchandise, maximum | 36 months | |||
Impairment of goodwill and definite-lived intangible assets | $ 0 | 0 | $ 0 | |
Weighted average useful life | 11 years 10 months 24 days | |||
Discount rate, lower range | 1.31% | |||
Discount range, upper range | 1.91% | |||
Inflation rate | 3.00% | |||
Advertising costs | $ 3,500,000 | $ 3,800,000 | $ 3,600,000 | |
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares) | shares | 6,005 | 8,094 | 8,325 | |
Accounting Standards Update 2016-13 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adoption date | Aug. 30, 2020 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Accounting Standards Update 2017-07 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adoption date | Aug. 29, 2021 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Accounting Standards Update 2018-15 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adoption date | Aug. 30, 2020 | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, immaterial effect | true | |||
Conversion of Class B Common Stock in to Common Stock | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Conversion ratio | 1 | |||
Stock Appreciation Rights (SARs) | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Expiration period | 10 years | |||
Stock Appreciation Rights (SARs) | Certain Share-based Awards Granted During Fiscal 2020, 2019 and 2018 to Non-employee Directors | Non-Employee Directors | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Expiration period | 8 years | |||
Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Discount period, lower range | 10 years | |||
Remaining lives | 1 year | |||
Credit adjusted risk-free rate | 7.00% | |||
Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Discount period, lower range | 30 years | |||
Remaining lives | 25 years | |||
Credit adjusted risk-free rate | 7.50% | |||
Customer contracts | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Weighted average useful life | 13 years 6 months | |||
Other intangible assets | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Weighted average useful life | 9 years 7 months 6 days | |||
Core Laundry Operations | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of revenues recognized over time | 95.80% | 94.70% | 95.80% | |
Percentage of revenues recognized at a point in time | 4.20% | 5.30% | 4.20% | |
Specialty Garments | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of revenues recognized over time | 81.80% | 79.20% | 82.70% | |
Percentage of revenues recognized at a point in time | 18.20% | 20.80% | 17.30% | |
First Aid | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of revenues recognized at a point in time | 100.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Total Revenue Disaggregated by Service Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,826,216 | $ 1,804,159 | $ 1,809,376 |
Revenue | Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues | 100.00% | 100.00% | 100.00% |
Core Laundry Operations | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 1,615,560 | $ 1,601,485 | $ 1,616,205 |
Core Laundry Operations | Revenue | Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues | 88.50% | 88.80% | 89.30% |
Specialty Garments | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 145,454 | $ 133,185 | $ 132,767 |
Specialty Garments | Revenue | Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues | 8.00% | 7.40% | 7.30% |
First Aid | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 65,202 | $ 69,489 | $ 60,404 |
First Aid | Revenue | Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenues | 3.50% | 3.80% | 3.40% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Components of Inventory (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 24,846 | $ 20,266 |
Work in process | 4,703 | 2,730 |
Finished goods | 114,042 | 83,273 |
Total inventory | $ 143,591 | $ 106,269 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,499,534 | $ 1,421,586 |
Less: accumulated depreciation | 881,815 | 839,116 |
Total property, plant and equipment | 617,719 | 582,470 |
Land, Buildings and Leasehold Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 618,910 | 558,277 |
Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 595,081 | 585,211 |
Motor Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 285,543 | $ 278,098 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Schedule of Useful Lives of Property, Plant and Equipment (Details) | 12 Months Ended |
Aug. 28, 2021 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Building Components | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Building Components | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Shorter of useful life or term of lease |
Machinery and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Motor Vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Motor Vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Computation of Basic Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Net income available to shareholders | $ 151,111 | $ 135,770 | $ 179,134 |
Allocation of net income for Basic: | |||
Common stock | $ 151,111 | $ 135,770 | $ 179,134 |
Weighted average number of shares for Basic: | |||
Common stock (in shares) | 18,880 | 18,919 | 19,082 |
Common Stock | |||
Allocation of net income for Basic: | |||
Common stock | $ 126,848 | $ 114,017 | $ 150,247 |
Weighted average number of shares for Basic: | |||
Common stock (in shares) | 15,237 | 15,276 | 15,385 |
Income per share for Basic: | |||
Common stock (in dollars per share) | $ 8.32 | $ 7.46 | $ 9.77 |
Class B Common Stock | |||
Allocation of net income for Basic: | |||
Common stock | $ 24,263 | $ 21,753 | $ 28,887 |
Weighted average number of shares for Basic: | |||
Common stock (in shares) | 3,643 | 3,643 | 3,697 |
Income per share for Basic: | |||
Common stock (in dollars per share) | $ 6.66 | $ 5.97 | $ 7.81 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Schedule of Computation of Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Earnings Per Share Diluted [Line Items] | |||
As reported—Basic | $ 151,111 | $ 135,770 | $ 179,134 |
As reported - Basic (in shares) | 18,880 | 18,919 | 19,082 |
Common Stock | $ 151,111 | $ 135,770 | $ 179,134 |
Common stock (in shares) | 19,038 | 19,042 | 19,196 |
Diluted Income Per Share – Common Stock (in dollars per share) | $ 7.94 | $ 7.13 | $ 9.33 |
Common Stock | |||
Earnings Per Share Diluted [Line Items] | |||
As reported—Basic | $ 126,848 | $ 114,017 | $ 150,247 |
As reported - Basic (in shares) | 15,237 | 15,276 | 15,385 |
As reported - Basic (in dollars per share) | $ 8.32 | $ 7.46 | $ 9.77 |
Add: effect of dilutive potential common shares | $ 0 | $ 0 | $ 0 |
Add: effect of dilutive potential common shares (in shares) | 158 | 123 | 114 |
Class B Common Stock | |||
Earnings Per Share Diluted [Line Items] | |||
As reported—Basic | $ 24,263 | $ 21,753 | $ 28,887 |
As reported - Basic (in shares) | 3,643 | 3,643 | 3,697 |
As reported - Basic (in dollars per share) | $ 6.66 | $ 5.97 | $ 7.81 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - Aggregate Information Relating to Acquisition of Businesses $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Aug. 28, 2021USD ($)Business | Aug. 29, 2020Business | Aug. 31, 2019Business | |
Business Acquisition [Line Items] | ||||
Number of business acquired | Business | 8 | 8 | 6 | |
Business acquisitions, aggregate purchase price | $ | $ 38.8 | $ 8.7 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition of Business (Details) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021USD ($)Business | Aug. 29, 2020USD ($)Business | Aug. 31, 2019USD ($)Business | |
Business Acquisition [Line Items] | |||
Goodwill | $ 429,538 | $ 424,844 | $ 401,178 |
Aggregate Information Relating to Acquisition of Businesses | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | Business | 8 | 8 | 6 |
Tangible assets acquired | $ 812 | $ 6,370 | $ 322 |
Goodwill | 4,533 | 23,544 | 3,929 |
Customer contracts | 3,219 | 12,697 | 1,344 |
Other intangible assets | 179 | 594 | 118 |
Liabilities assumed | (1,872) | ||
Acquisition of businesses | $ 8,743 | $ 41,333 | $ 5,713 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets or Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Assets: | ||
Cash equivalents | $ 197,081 | $ 196,478 |
Pension plan assets | 3,795 | 4,146 |
Foreign currency forward contracts | 41 | 87 |
Total assets at fair value | 200,917 | 200,711 |
Level 1 | ||
Assets: | ||
Cash equivalents | 197,081 | 196,478 |
Pension plan assets | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total assets at fair value | 197,081 | 196,478 |
Level 2 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Pension plan assets | 3,795 | 4,146 |
Foreign currency forward contracts | 41 | 87 |
Total assets at fair value | 3,836 | 4,233 |
Level 3 | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Pension plan assets | 0 | 0 |
Foreign currency forward contracts | 0 | 0 |
Total assets at fair value | $ 0 | $ 0 |
Income Taxes - Provision _ (Ben
Income Taxes - Provision / (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Current: | |||
Federal | $ 35,267 | $ 40,084 | $ 38,545 |
Foreign | 1,714 | 1,589 | (200) |
State | 9,873 | 12,865 | 11,733 |
Total current | 46,854 | 54,538 | 50,078 |
Deferred: | |||
Federal | (1,421) | (8,522) | 7,289 |
Foreign | 848 | (599) | 645 |
State | (521) | (3,299) | 778 |
Total deferred | (1,094) | (12,420) | 8,712 |
Total | $ 45,760 | $ 42,118 | $ 58,790 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Provision for Income Taxes (Details) | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at the statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes | 4.20% | 4.40% | 4.30% |
Other | (2.00%) | (1.70%) | (0.60%) |
Total | 23.20% | 23.70% | 24.70% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Deferred Tax Assets | ||
Payroll and benefit related | $ 21,893 | $ 17,451 |
Insurance related | 14,042 | 13,790 |
Environmental | 8,408 | 7,856 |
Accrued expenses | 10,134 | 6,270 |
Operating lease liabilities | 9,214 | 8,720 |
Other | 8,127 | 7,536 |
Total deferred tax assets | 71,818 | 61,623 |
Deferred Tax Liabilities | ||
Payroll and benefit related | 19,474 | 17,722 |
Tax in excess of book depreciation | 40,725 | 41,713 |
Purchased intangible assets | 36,183 | 32,892 |
Rental merchandise in service | 45,432 | 38,846 |
Operating lease right-of-use assets | 8,984 | 8,952 |
Other | 157 | 191 |
Total deferred tax liabilities | 150,955 | 140,316 |
Net deferred tax liability | $ 79,137 | $ 78,693 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 23.20% | 23.70% | 24.70% |
Unrecognized tax benefits | $ 9,321 | $ 6,330 | $ 7,668 |
Total unrecognized tax benefits | 8,700 | 5,600 | |
Accrued interest and penalties | $ 100 | $ 200 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ||
Beginning balance | $ 6,330 | $ 7,668 |
Additions based on tax positions related to the current year | 637 | 475 |
Reduction for tax positions of prior years | (287) | (1,389) |
Additions for tax positions of prior years | 3,552 | |
Statute expirations | (911) | (424) |
Ending balance | $ 9,321 | $ 6,330 |
Loans Payable and Long-term D_2
Loans Payable and Long-term Debt - Narrative (Details) - USD ($) | Mar. 26, 2021 | Mar. 25, 2021 | Aug. 28, 2021 | Aug. 29, 2020 |
Debt Instrument [Line Items] | ||||
Outstanding loans payable | $ 0 | $ 0 | ||
Outstanding letters of credit | 67,500,000 | $ 70,800,000 | ||
Revolving Credit Facility | 2021 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 175,000,000 | |||
Maturity date | Mar. 26, 2026 | |||
Outstanding borrowings | 0 | |||
Outstanding letters of credit | 67,500,000 | |||
Amount available for borrowing | $ 107,500,000 | |||
Revolving Credit Facility | 2021 Credit Agreement | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as percent) | 1.00% | |||
Revolving Credit Facility | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 250,000,000 | |||
Maturity date | Apr. 11, 2021 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Thousands, $ in Millions | Aug. 31, 2021CAD ($)contract | Aug. 28, 2021USD ($) | Aug. 28, 2021CAD ($) | Aug. 29, 2020USD ($) | Jun. 30, 2018CAD ($)contract |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Amount reclassified from accumulated other comprehensive loss | $ (24,836) | $ (31,970) | |||
Canadian Dollars | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Average exchange rate | 0.7861 | 0.7814 | |||
Forward Contracts | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional value (CAD) | $ 14.1 | $ 15.5 | $ 12.1 | ||
Amount reclassified from accumulated other comprehensive loss | $ (100) | ||||
Forward Contracts | Canadian Dollars | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of derivatives entered into to exchange Canadian dollars for U.S. dollars | contract | 20 | 12 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions charged to expense under the plan | $ 19.9 | $ 16.6 | $ 19.7 |
SERP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amounts charged to expense related to the plan | 2.9 | 2.6 | 2.1 |
Accumulated benefit obligations | 30.6 | 30.7 | |
UniFirst Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amounts charged to expense related to the plan | $ 0.2 | 0.2 | 0.3 |
Minimum annual interest rate | 3.25% | ||
Textilease Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amounts charged to expense related to the plan | $ 0 | 0 | $ 0.5 |
Minimum annual interest rate | 1.50% | ||
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated benefit obligations | $ 5 | $ 5.5 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 71 | $ 113 | $ 114 |
Interest cost | 104 | 131 | 260 |
Expected return on assets | (131) | (138) | (199) |
Amortization of prior service cost | 55 | 66 | 66 |
Amortization of net loss | 36 | 12 | 51 |
Other events | 49 | 503 | |
Net periodic benefit cost | 184 | 184 | 795 |
SERP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 1,100 | 918 | 725 |
Interest cost | 943 | 1,027 | 1,148 |
Expected return on assets | 0 | ||
Amortization of prior service cost | 0 | ||
Amortization of net loss | 821 | 703 | 247 |
Other events | 0 | ||
Net periodic benefit cost | $ 2,864 | $ 2,648 | $ 2,120 |
Employee Benefit Plans - Obliga
Employee Benefit Plans - Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Pension Plans | |||
Change in benefit obligation: | |||
Projected benefit obligation, beginning of year | $ 5,468 | $ 5,566 | |
Service cost | 71 | 113 | $ 114 |
Interest cost | 104 | 131 | 260 |
Actuarial (gain) loss | (225) | 169 | |
Benefits paid | (28) | (224) | |
Settlements | (355) | (287) | |
Projected benefit obligation, end of year | 5,035 | 5,468 | 5,566 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 4,146 | 4,603 | |
Actual return on plan assets | 33 | 54 | |
Benefits paid | (28) | (224) | |
Settlements | (355) | (287) | |
Fair value of plan assets, end of year | 3,796 | 4,146 | 4,603 |
Funded status (net amount recognized): | (1,239) | (1,322) | |
SERP | |||
Change in benefit obligation: | |||
Projected benefit obligation, beginning of year | 38,616 | 35,967 | |
Service cost | 1,100 | 918 | 725 |
Interest cost | 943 | 1,027 | 1,148 |
Actuarial (gain) loss | (2,890) | 1,658 | |
Benefits paid | (1,125) | (954) | |
Settlements | 0 | ||
Projected benefit obligation, end of year | 36,644 | 38,616 | 35,967 |
Change in plan assets: | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | ||
Employer contributions | 0 | ||
Benefits paid | 0 | ||
Settlements | 0 | ||
Fair value of plan assets, end of year | 0 | $ 0 | |
Funded status (net amount recognized): | $ (36,644) | $ (38,616) |
Employee Benefit Plans - Amount
Employee Benefit Plans - Amounts Recorded in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Deferred tax assets | $ 213 | $ 279 |
Accrued liabilities | 1,240 | 1,322 |
Accumulated other comprehensive loss | (1,044) | (819) |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Deferred tax assets | 2,218 | 3,144 |
Accrued liabilities | 36,644 | 38,616 |
Accumulated other comprehensive loss | $ (6,449) | $ (9,234) |
Employee Benefit Plans - Amou_2
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial gain (loss) | $ (1,180) | $ (1,011) |
Unrecognized prior service cost | 136 | 192 |
Accumulated other comprehensive loss | (1,044) | (819) |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Net actuarial gain (loss) | (6,449) | (9,234) |
Accumulated other comprehensive loss | $ (6,449) | $ (9,234) |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted Average Assumptions Used in Calculating Projected Benefit Obligation (Details) | Aug. 28, 2021 | Aug. 29, 2020 |
Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.30% | 2.00% |
SERP | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 2.60% | 2.50% |
Rate of compensation increase | 5.00% | 5.00% |
Employee Benefit Plans - Weig_2
Employee Benefit Plans - Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.00% | 2.70% | 3.80% |
Expected return on plan assets | 3.50% | 3.50% | 3.50% |
SERP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.50% | 2.90% | 4.00% |
Rate of compensation increase | 5.00% | 5.00% | 5.00% |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Benefit Payments (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 |
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
2022 | $ 795 | ||
2023 | 269 | ||
2024 | 250 | ||
2025 | 360 | ||
2026 | 377 | ||
Thereafter | 2,984 | ||
Total benefit payments | 5,035 | $ 5,468 | $ 5,566 |
SERP | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
2022 | 1,362 | ||
2023 | 1,362 | ||
2024 | 1,549 | ||
2025 | 1,611 | ||
2026 | 1,750 | ||
Thereafter | 29,010 | ||
Total benefit payments | $ 36,644 | $ 38,616 | $ 35,967 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 4,533 | $ 23,544 |
Total intangible assets and goodwill acquired | 7,931 | 36,835 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 3,219 | $ 12,697 |
Weighted average life | 10 years | 14 years 1 month 6 days |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 179 | $ 594 |
Weighted average life | 5 years | 5 years 3 months 18 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Goodwill [Line Items] | |||
Impairment losses related to goodwill or intangible assets | $ 0 | $ 0 | $ 0 |
Goodwill | 429,538,000 | $ 424,844,000 | $ 401,178,000 |
US and Canadian Rental and Cleaning | |||
Goodwill [Line Items] | |||
Goodwill | 418,000,000 | ||
Specialty Garments | |||
Goodwill [Line Items] | |||
Goodwill | 10,900,000 | ||
First Aid | |||
Goodwill [Line Items] | |||
Goodwill | $ 600,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 28, 2021 | Aug. 29, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 424,844 | $ 401,178 |
Goodwill recorded during the period | 4,533 | 23,544 |
Other | 161 | 122 |
Ending balance | $ 429,538 | $ 424,844 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 348,725 | $ 335,820 |
Accumulated Amortization | 264,087 | 250,284 |
Net Carrying Amount | 84,638 | 85,536 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 237,384 | 234,065 |
Accumulated Amortization | 188,255 | 177,119 |
Net Carrying Amount | 49,129 | 56,946 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 74,475 | 66,014 |
Accumulated Amortization | 40,763 | 39,020 |
Net Carrying Amount | 33,712 | 26,994 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,866 | 35,741 |
Accumulated Amortization | 35,069 | 34,145 |
Net Carrying Amount | $ 1,797 | $ 1,596 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 13,466 | |
2023 | 11,395 | |
2024 | 10,046 | |
2025 | 8,952 | |
2026 | 7,865 | |
Thereafter | 32,914 | |
Net Carrying Amount | $ 84,638 | $ 85,536 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Current liabilities: | ||
Payroll and benefit related | $ 61,997 | $ 46,789 |
Bonuses | 17,693 | 13,803 |
Insurance related | 34,314 | 34,403 |
Environmental related | 12,279 | 11,172 |
Other | 33,295 | 26,798 |
Total current liabilities | 159,578 | 132,965 |
Long-term liabilities: | ||
Benefit related | 36,521 | 38,744 |
Environmental related | 20,580 | 19,530 |
Asset retirement obligations | 14,887 | 13,920 |
Insurance related | 62,097 | 60,626 |
Total long-term liabilities | 134,085 | 132,820 |
Total accrued liabilities | $ 293,663 | $ 265,785 |
Asset Retirement Obligations -
Asset Retirement Obligations - Narrative (Details) | 12 Months Ended |
Aug. 28, 2021 | |
Asset Retirement Obligations [Line Items] | |
Estimated impact of inflation per year | 3.00% |
Credit adjusted risk free rates, minimum | 7.00% |
Credit adjusted risk free rates, maximum | 7.50% |
Minimum | |
Asset Retirement Obligations [Line Items] | |
Remaining lives | 1 year |
Maximum | |
Asset Retirement Obligations [Line Items] | |
Remaining lives | 25 years |
Asset Retirement Obligations _2
Asset Retirement Obligations - Rollforward of Asset Retirement Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Beginning balance | $ 13,920 | $ 12,727 | |
Accretion expense | 985 | 929 | $ 865 |
Effect of exchange rate changes | (18) | 264 | |
Ending balance | $ 14,887 | $ 13,920 | $ 12,727 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Feb. 23, 2019USD ($) | Aug. 28, 2021USD ($)sitecompany | Aug. 29, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 26, 2017USD ($) | |
Gain Contingencies [Line Items] | |||||
Operating lease, existence of option to extend | true | ||||
Operating lease, existence of option to terminate | true | ||||
Total rent expense on all leases | $ 16.2 | $ 15.2 | $ 16.5 | ||
Estimated rate of inflation | 3.00% | ||||
Annual proceeds | $ 0.3 | ||||
Number of sites related to former operations | site | 2 | ||||
Balance in escrow account | $ 4.7 | ||||
Number of insurance companies | company | 3 | ||||
Pre-tax non-cash impairment charge | $ 55.8 | ||||
Gain (loss) related to litigation settlement | $ 21.1 | ||||
One-time cash payment received for sale of CRM system | 13 | ||||
Hardware received at fair value | $ 0.8 | ||||
Outstanding letters of credit | $ 67.5 | $ 70.8 | |||
Non-cancellable purchase commitments for inventories, software, and services | 65.5 | ||||
Non-cancellable purchase commitments to be paid in less than one year | 46.2 | ||||
Non-cancellable purchase commitments to be paid in one to three year | $ 11.7 | ||||
Minimum | |||||
Gain Contingencies [Line Items] | |||||
Risk-free interest rates utilized | 1.31% | ||||
Maximum | |||||
Gain Contingencies [Line Items] | |||||
Risk-free interest rates utilized | 1.91% |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Operating Lease Cost and Information Related to Operating Lease Right-of-use Assets, Net and Operating Lease Liabilities (Details) $ in Thousands | 12 Months Ended |
Aug. 28, 2021USD ($) | |
Lease cost | |
Operating lease costs including short-term lease expense and variable lease costs, which were immaterial in the period | $ 19,329 |
Operating cash flow impacts | |
Cash paid for amounts included in the measurement of operating lease liabilities | 13,629 |
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | $ 13,592 |
Weighted-average remaining lease term - operating leases | 4 years 1 month 2 days |
Weighted-average discount rate - operating leases | 2.28% |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Contractual Future Minimum Lease Payments of Operating Lease Liabilities (Details) $ in Thousands | Aug. 28, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2022 | $ 13,815 |
2023 | 11,489 |
2024 | 8,014 |
2025 | 5,284 |
2026 | 3,576 |
Thereafter | 3,541 |
Total payments | 45,719 |
Less interest | 2,545 |
Total present value of lease payments | $ 43,174 |
Commitments and Contingencies_4
Commitments and Contingencies - Changes to Environmental Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Accrual For Environmental Loss Contingencies Roll Forward | |||
Beginning balance | $ 30,702 | $ 27,718 | |
Costs incurred for which reserves have been provided | (1,593) | (1,160) | |
Insurance proceeds | 129 | 111 | |
Interest accretion | 448 | 537 | $ 755 |
Changes in discount rates | (1,040) | 1,133 | |
Revisions in estimates | 4,213 | 2,363 | |
Ending balance | $ 32,859 | $ 30,702 | $ 27,718 |
Commitments and Contingencies_5
Commitments and Contingencies - Anticipated Payments and Insurance Proceeds of Identified Environmental Remediation Liabilities (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 |
Estimated costs—current dollars | |||
2022 | $ 12,490 | ||
2023 | 2,530 | ||
2024 | 2,080 | ||
2025 | 1,366 | ||
2026 | 1,129 | ||
Thereafter | 12,712 | ||
Total | 32,307 | ||
Estimated insurance proceeds | |||
2022 | (210) | ||
2023 | (159) | ||
2024 | (173) | ||
2025 | (159) | ||
2026 | (173) | ||
Thereafter | (380) | ||
Total | $ (1,254) | ||
Net anticipated costs | |||
2022 | 12,280 | ||
2023 | 2,371 | ||
2024 | 1,907 | ||
2025 | 1,207 | ||
2026 | 956 | ||
Thereafter | 12,332 | ||
Total | 31,053 | ||
Effect of inflation | 7,912 | ||
Effect of discounting | (6,106) | ||
Balance at end of period | $ 32,859 | $ 30,702 | $ 27,718 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | Oct. 27, 2014 | Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | Oct. 30, 2010 | Nov. 30, 1996 |
Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period awards become fully vested or exercisable | 5 years | |||||
Expiration period | 10 years | |||||
Weighted average fair values of Share-Based Awards granted (in dollars per share) | $ 42.63 | $ 46.58 | $ 46.20 | |||
Stock Appreciation Rights (SARs) | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage vested after each anniversary of the grant date | 20.00% | |||||
Stock Appreciation Rights (SARs) | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage vested after each anniversary of the grant date | 60.00% | |||||
Stock Appreciation Rights (SARs) | Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage vested after each anniversary of the grant date | 20.00% | |||||
Stock Appreciation Rights (SARs) | Cliff Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period awards become fully vested or exercisable | 5 years | |||||
Share-Based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total compensation cost not yet recognized related to non-vested awards | $ 14,600 | |||||
Period for recognition | 1 year 10 months 24 days | |||||
Time-Based Restricted Stock Units | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage vested after each anniversary of the grant date | 20.00% | |||||
Period awards become fully vested or exercisable | 5 years | |||||
Time-Based Restricted Stock Units | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage vested after each anniversary of the grant date | 33.00% | |||||
Period awards become fully vested or exercisable | 3 years | |||||
Time-Based Restricted Stock Units | Tranche Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period awards become fully vested or exercisable | 5 years | |||||
Time-Based Restricted Stock Units | Cliff Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Period awards become fully vested or exercisable | 5 years | |||||
Time-Based Restricted Stock Units | Tranche Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage vested after each anniversary of the grant date | 60.00% | |||||
Time-Based Restricted Stock Units | Tranche Five | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage vested after each anniversary of the grant date | 20.00% | |||||
Non-Employee Directors | Unrestricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 0 | 0 | 291 | |||
The 1996 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares reserved for issuance (in shares) | 1,500,000 | |||||
The 2010 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares reserved for issuance (in shares) | 600,000 | |||||
Number of additional shares reserved for issuance (in shares) | 750,000 | |||||
Shares available for future grants (in shares) | 251,713 | |||||
The 2010 Plan | Non-Employee Directors | Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 5,000 | 5,000 | 5,000 |
Share-based Compensation - Sche
Share-based Compensation - Schedule of Weighted Average Assumptions (Details) - Stock Appreciation Rights (SARs) | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.47% | 1.69% | 3.07% |
Expected dividend yield | 0.58% | 0.50% | 0.48% |
Expected life in years | 5 years 8 months 12 days | 5 years 7 months 6 days | 7 years 2 months 26 days |
Expected volatility | 27.50% | 22.40% | 22.90% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Share-Based Award Activity for Stock Options and Stock Appreciation Rights (Details) | 12 Months Ended |
Aug. 28, 2021$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 494,933 |
Granted | shares | 36,725 |
Exercised | shares | (117,693) |
Forfeited | shares | (19,791) |
Outstanding at end of period (in shares) | shares | 394,174 |
Exercisable at end of period (in shares) | shares | 95,235 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 132.14 |
Granted | $ / shares | 172.58 |
Exercised | $ / shares | 104.55 |
Forfeited | $ / shares | 133.66 |
Outstanding at end of period (in dollars per share) | $ / shares | 144.07 |
Exercisable at end of period (in dollars per share) | $ / shares | $ 121.59 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Share-Based Award Activity for Restricted Stock Units (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Aug. 28, 2021$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 57,920 |
Shares granted (in shares) | shares | 44,993 |
Vested | shares | (5,929) |
Forfeited | shares | (2,426) |
Outstanding at end of period (in shares) | shares | 94,558 |
Weighted Average Grant Price | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 183.90 |
Granted | $ / shares | 174.42 |
Vested | $ / shares | 173.70 |
Forfeited | $ / shares | 196.15 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 178.78 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | Oct. 20, 2021USD ($)$ / shares | Oct. 19, 2021$ / shares | Oct. 23, 2019$ / shares | Oct. 22, 2019$ / shares | Aug. 28, 2021USD ($)$ / sharesshares | Aug. 29, 2020$ / sharesshares | Aug. 31, 2019vote$ / sharesshares | Jan. 02, 2019USD ($) |
Class Of Stock [Line Items] | ||||||||
Shares repurchased (in shares) | shares | 60,950 | 117,767 | 197,150 | |||||
Total cost of shares repurchased divided by the total number of shares repurchased | $ 184.13 | $ 184.67 | $ 154.78 | |||||
Stock repurchase, remaining to repurchase outstanding shares value | $ | $ 36,500,000 | |||||||
Maximum | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock repurchase authorized, Value | $ | $ 100,000,000 | $ 100,000,000 | ||||||
Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Voting rights | vote | 1 | |||||||
Dividend rate | 125.00% | |||||||
Quarterly dividend amount (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.25 | $ 0.1125 | ||||
Class B Common Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Voting rights | vote | 10 | |||||||
Number of shares converted (in shares) | shares | 0 | 0 | 67,000 | |||||
Quarterly dividend amount (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.20 | $ 0.09 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 1,741,129 | $ 1,641,230 | $ 1,464,967 | |
Change during the year | 7,134 | 1,718 | (8,529) | |
Balance at end of period | 1,872,952 | 1,741,129 | 1,641,230 | |
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (22,009) | (24,640) | ||
Change during the year | 4,208 | 2,631 | ||
Balance at end of period | (17,801) | (22,009) | (24,640) | |
Pension-related | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | [1] | (10,026) | (9,239) | |
Change during the year | [1] | 2,960 | (787) | |
Balance at end of period | [1] | (7,066) | (10,026) | (9,239) |
Derivative Financial Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | [1] | 65 | 191 | |
Change during the year | [1] | (34) | (126) | |
Balance at end of period | [1] | 31 | 65 | 191 |
Accumulated Other Comprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (31,970) | (33,688) | (25,159) | |
Change during the year | 7,134 | 1,718 | ||
Balance at end of period | $ (24,836) | $ (31,970) | $ (33,688) | |
[1] | Amounts are shown net of tax |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Selling and administrative expenses | [1] | $ 383,161 | $ 361,801 | $ 334,840 |
Provision for income taxes | 45,760 | 42,118 | 58,790 | |
Net income | 151,111 | 135,770 | $ 179,134 | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Net income | (713) | 384 | ||
Actuarial Losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Selling and administrative expenses | [2] | (679) | 233 | |
Pension Benefit Liabilities, Net | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Net income | (679) | 233 | ||
Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Net income | (34) | 151 | ||
Derivative Financial Instruments | Forward Contracts | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Forward contracts loss (gain) | [3] | $ (34) | $ 151 | |
[1] | Exclusive of depreciation on the Company’s property, plant and equipment and amortization of its intangible assets. | |||
[2] | Amounts included in selling and administrative expenses in the accompanying Consolidated Statements of Income | |||
[3] | Amounts included in revenues in the accompanying Consolidated Statements of Income |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 12 Months Ended |
Aug. 28, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 6 |
Number of reporting segments | 5 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,826,216 | $ 1,804,159 | $ 1,809,376 |
Income (loss) from operations | 195,825 | 172,729 | 232,008 |
Interest (income) expense, net | (2,568) | (6,382) | (9,082) |
Income (loss) before taxes | 196,871 | 177,888 | 237,924 |
Depreciation and amortization | 105,955 | 104,697 | 103,333 |
Capital expenditures | 133,639 | 116,717 | 119,815 |
Total assets | 2,381,065 | 2,199,027 | 2,047,320 |
US and Canadian Rental and Cleaning | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,580,850 | 1,552,179 | 1,582,416 |
Income (loss) from operations | 290,774 | 247,392 | 235,046 |
Interest (income) expense, net | (2,760) | (3,741) | (4,105) |
Income (loss) before taxes | 293,357 | 251,088 | 239,122 |
Depreciation and amortization | 73,611 | 71,020 | 69,376 |
Capital expenditures | 129,327 | 110,024 | 115,071 |
Total assets | 2,179,243 | 1,992,546 | 1,865,713 |
MFG | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 264,021 | 214,683 | 254,218 |
Income (loss) from operations | 73,579 | 64,097 | 84,248 |
Income (loss) before taxes | 73,260 | 63,912 | 84,008 |
Depreciation and amortization | 2,530 | 2,404 | 2,384 |
Capital expenditures | 456 | 397 | 401 |
Total assets | 37,605 | 33,233 | 36,376 |
MFG | Net Interco MFG Elim | |||
Segment Reporting Information [Line Items] | |||
Revenues | (264,021) | (214,683) | (254,111) |
Income (loss) from operations | (283) | 10,012 | 1,128 |
Income (loss) before taxes | (283) | 10,012 | 1,128 |
Corporate | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 34,710 | 49,306 | 33,682 |
Income (loss) from operations | (192,353) | (171,514) | (107,468) |
Interest (income) expense, net | 192 | (2,641) | (4,977) |
Income (loss) before taxes | (194,970) | (170,629) | (104,742) |
Depreciation and amortization | 23,190 | 24,983 | 25,098 |
Subtotal Core Laundry Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,615,560 | 1,601,485 | 1,616,205 |
Income (loss) from operations | 171,717 | 149,987 | 212,954 |
Interest (income) expense, net | (2,568) | (6,382) | (9,082) |
Income (loss) before taxes | 171,364 | 154,383 | 219,516 |
Depreciation and amortization | 99,331 | 98,407 | 96,858 |
Capital expenditures | 129,783 | 110,421 | 115,472 |
Total assets | 2,216,848 | 2,025,779 | 1,902,089 |
Specialty Garments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 145,454 | 133,185 | 132,767 |
Specialty Garments | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 145,454 | 133,185 | 132,767 |
Income (loss) from operations | 24,801 | 17,845 | 14,145 |
Income (loss) before taxes | 26,198 | 18,604 | 13,499 |
Depreciation and amortization | 4,510 | 4,335 | 4,759 |
Capital expenditures | 3,407 | 4,864 | 3,423 |
Total assets | 119,305 | 131,328 | 110,335 |
First Aid | |||
Segment Reporting Information [Line Items] | |||
Revenues | 65,202 | 69,489 | 60,404 |
First Aid | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 65,202 | 69,489 | 60,404 |
Income (loss) from operations | (693) | 4,897 | 4,909 |
Income (loss) before taxes | (691) | 4,901 | 4,909 |
Depreciation and amortization | 2,114 | 1,955 | 1,716 |
Capital expenditures | 449 | 1,432 | 920 |
Total assets | $ 44,912 | $ 41,920 | $ 34,896 |
Segment Reporting - Long-Lived
Segment Reporting - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Aug. 28, 2021 | Aug. 29, 2020 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 1,277,273 | $ 1,229,693 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | 1,219,760 | 1,177,107 |
Europe, Canada, Mexico and Nicaragua | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 57,513 | $ 52,586 |
Segment Reporting - Revenues an
Segment Reporting - Revenues and Income Before Income Taxes by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 1,826,216 | $ 1,804,159 | $ 1,809,376 |
Income before income taxes | 196,871 | 177,888 | 237,924 |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 1,672,530 | 1,659,913 | 1,683,321 |
Income before income taxes | 187,442 | 175,301 | 236,843 |
Europe, Canada, Mexico and Nicaragua | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Income before income taxes | 9,429 | 2,587 | 1,081 |
Europe and Canada | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 153,686 | $ 144,246 | $ 126,055 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 28, 2021 | Aug. 29, 2020 | Aug. 31, 2019 | |
Movement In Valuation Allowances And Reserves Roll Forward | |||
Balance, Beginning of Period | $ 12,125 | $ 9,935 | $ 9,237 |
Charged to Costs and Expenses | 1,572 | 6,027 | 5,996 |
Charges for Which Reserves Were Created or Deductions | (2,575) | (3,837) | (5,298) |
Balance, End of Period | $ 11,122 | $ 12,125 | $ 9,935 |