UniFirst (UNF) 10-Q 4 Jan 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Nov. 25, 2017	Dec. 29, 2017
Document Information [Line Items]
Entity Registrant Name	Unifirst Corp
Entity Central Index Key	717,954
Trading Symbol	unf
Current Fiscal Year End Date	--08-25
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Nov. 25, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		15,474,582
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		4,815,519

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Nov. 25, 2017	Nov. 26, 2016
Revenues		$ 415,778	$ 386,108
Operating expenses:
Cost of revenues	[1]	253,650	238,765
Selling and administrative expenses	[1]	87,510	79,446
Depreciation and amortization		22,707	22,140
Total operating expenses		363,867	340,351
Income from operations		51,911	45,757
Other (income) expense:
Interest income, net		(1,276)	(801)
Other expense, net		154	494
Total other income, net		(1,122)	(307)
Income before income taxes		53,033	46,064
Provision for income taxes		18,827	17,850
Net income		$ 34,206	$ 28,214
Income per share – Diluted:
Common Stock (in dollars per share)		$ 1.67	$ 1.38
Income allocated to – Basic:
Common Stock		$ 34,206	$ 28,214
Income allocated to – Diluted:
Common Stock		$ 34,206	$ 28,020
Weighted average number of shares outstanding – Basic:
Common Stock (in shares)		20,278	20,272
Weighted average number of shares outstanding – Diluted:
Common Stock (in shares)		20,434	20,249
Common Stock
Income per share – Basic:
Common Stock (in dollars per share)		$ 1.77	$ 1.46
Income allocated to – Basic:
Common Stock		$ 27,384	$ 22,342
Weighted average number of shares outstanding – Basic:
Common Stock (in shares)		15,462	15,285
Dividends per share:
Common Stock (in dollars per share)		$ 0.0375	$ 0.0375
Class B Common Stock
Income per share – Basic:
Common Stock (in dollars per share)		$ 1.42	$ 1.17
Income allocated to – Basic:
Common Stock		$ 6,822	$ 5,668
Weighted average number of shares outstanding – Basic:
Common Stock (in shares)		4,816	4,847
Dividends per share:
Common Stock (in dollars per share)		$ 0.0300	$ 0.0300
[1]	Exclusive of depreciation on the Company’s property, plant and equipment and amortization on its intangible assets.

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 34,206	$ 28,214
Other comprehensive (loss) income:
Foreign currency translation adjustments	(2,013)	(5,129)
Change in fair value of derivatives, net of income taxes	82	324
Derivative financial instruments reclassified to earnings	4	(76)
Other comprehensive loss	(1,927)	(4,881)
Comprehensive income	$ 32,279	$ 23,333

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 25, 2017	Aug. 26, 2017
Current assets:
Cash, cash equivalents and short-term investments	$ 374,036	$ 349,752
Receivables, less reserves of $11,085 and $8,719	200,148	187,174
Inventories	81,972	79,068
Rental merchandise in service	151,354	151,340
Prepaid taxes	12,969	29,968
Prepaid expenses and other current assets	22,241	16,924
Total current assets	842,720	814,226
Property, plant and equipment, net of accumulated depreciation of $715,701 and $702,325	524,130	525,115
Goodwill	377,104	376,110
Customer contracts, net	65,225	67,485
Other intangible assets, net	4,231	4,259
Deferred income taxes	407	394
Other assets	31,013	31,539
Total assets	1,844,830	1,819,128
Current liabilities:
Accounts payable	63,901	64,691
Accrued liabilities	104,099	112,236
Accrued taxes	0	921
Total current liabilities	168,000	177,848
Accrued liabilities	107,481	106,736
Accrued and deferred income taxes	83,741	81,352
Total liabilities	359,222	365,936
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	87,844	86,245
Retained earnings	1,419,180	1,386,438
Accumulated other comprehensive loss	(23,445)	(21,518)
Total shareholders’ equity	1,485,608	1,453,192
Total liabilities and shareholders’ equity	1,844,830	1,819,128
Common Stock
Shareholders’ equity:
Common stock	1,547	1,545
Class B Common Stock
Shareholders’ equity:
Common stock	$ 482	$ 482

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Nov. 25, 2017	Aug. 26, 2017
Receivables, reserves	$ 11,085	$ 8,719
Accumulated depreciation	$ 715,701	$ 702,325
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)	15,469,099	15,453,308
Common stock, shares outstanding (in shares)	15,469,099	15,453,308
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)	4,815,519	4,815,519
Common stock, shares outstanding (in shares)	4,815,519	4,815,519

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Cash flows from operating activities:
Net income	$ 34,206	$ 28,214
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	19,540	18,500
Amortization of intangible assets	3,167	3,640
Amortization of deferred financing costs	28	28
Share-based compensation	1,114	2,015
Accretion on environmental contingencies	173	150
Accretion on asset retirement obligations	240	205
Deferred income taxes	2,031	(746)
Changes in assets and liabilities, net of acquisitions:
Receivables, less reserves	(12,879)	(13,112)
Inventories	(2,882)	7,526
Rental merchandise in service	(82)	152
Prepaid expenses and other current assets and Other assets	(4,901)	9,288
Accounts payable	(1,092)	(1,113)
Accrued liabilities	(7,456)	(8,837)
Prepaid and accrued income taxes	16,420	17,589
Net cash provided by operating activities	47,627	63,499
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(2,671)	(120,391)
Capital expenditures	(19,033)	(18,233)
Other	318	281
Net cash used in investing activities	(21,386)	(138,343)
Cash flows from financing activities:
Proceeds from exercise of share-based awards, including excess tax benefits	267	929
Taxes withheld and paid related to net share settlement of equity awards	(522)	(566)
Payment of cash dividends	(726)	(724)
Net cash used in financing activities	(981)	(361)
Effect of exchange rate changes	(976)	(2,471)
Net increase (decrease) in cash, cash equivalents and short-term investments	24,284	(77,676)
Cash, cash equivalents and short-term investments at beginning of period	349,752	363,795
Cash, cash equivalents and short-term investments at end of period	$ 374,036	$ 286,119

Basis of Presentation

Basis of Presentation	3 Months Ended
	Nov. 25, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation These Consolidated Financial Statements of UniFirst Corporation (“Company”) have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the information furnished reflects all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim period. It is suggested that these Consolidated Financial Statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 26, 2017 . 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 discussed in Note 2. Results for an interim period are not indicative of any future interim periods or for an entire fiscal year.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Nov. 25, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued updated accounting guidance for revenue recognition, which they have subsequently modified. This modified update provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company has established an implementation team and is working on the completion of its project plan to address the requirements of this standard. The Company is currently reviewing its customer contracts, assessing its incremental costs of obtaining customer contracts, and identifying any potential changes to business processes and controls to support accounting and disclosure considerations under this standard. The Company expects to adopt this standard using the modified retrospective adoption method and continues to evaluate the impact that this guidance will have on its financial statements and related disclosures. In July 2015, the FASB issued updated guidance which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, and is to be applied prospectively, with early adoption permitted. Accordingly, the Company adopted this standard on August 27, 2017. The adoption of this guidance did not have a material impact on its financial statements. In January 2016, the FASB issued updated guidance for the recognition, measurement, presentation, and disclosure of certain financial assets and liabilities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company expects that adoption of this guidance will not have a material impact on its financial statements. In February 2016, the FASB issued updated guidance that improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Accordingly, the standard will be effective for the Company on September 1, 2019. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures. In March 2016, the FASB issued updated guidance that simplifies several aspects of accounting for share-based payment transactions. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016 and, depending on the amendment, must be applied using a prospective transition method, retrospective transition method, modified retrospective transition method, prospectively and/or retroactively, with early adoption permitted. Accordingly, the Company adopted this standard on August 27, 2017. The adoption impact on the consolidated balance sheet as of November 25, 2017 was a cumulative-effect adjustment of $0.7 million , decreasing retained earnings and increasing capital surplus. The impact of the adoption on the consolidated statement of income was a decrease of $1.6 million in income taxes during the thirteen weeks ended November 25, 2017. As a result of the adoption of the updated guidance, our excess tax benefit is no longer included in our calculation of diluted shares under the treasury stock method, resulting in an increase of a nominal amount of shares in the effect of dilutive securities for the thirteen weeks ended November 25, 2017. The election to recognize forfeitures of share-based awards as they occur resulted in an increase of $0.1 million in share-based compensation for the thirteen weeks ended November 25, 2017. Prior periods have not been adjusted. In August 2016, the FASB issued updated guidance that reduces diversity in how certain cash receipts and cash payments are presented and classified in the Consolidated Statements of Cash Flows. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017 and will be required to be applied retrospectively, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures. In October 2016, the FASB issued updated guidance to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017 and will be required to be applied on a modified retrospective basis, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

Business Acquisitions

Business Acquisitions	3 Months Ended
	Nov. 25, 2017
Business Combinations [Abstract]
Business Acquisitions	Business Acquisitions During the thirteen weeks ended November 25, 2017 , the Company completed two business acquisitions with an aggregate purchase price of approximately $2.7 million . The results of operations of these acquisitions have been included in the Company’s consolidated financial results since their respective acquisition dates. These acquisitions were not significant in relation to the Company’s consolidated financial results and, therefore, pro-forma financial information has not been presented.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Nov. 25, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The assets or liabilities measured at fair value on a recurring basis are summarized in the tables below (in thousands): As of November 25, 2017 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 78,952 $ — $ — $ 78,952 Pension plan assets — 5,048 — 5,048 Total assets at fair value $ 78,952 $ 5,048 $ — $ 84,000 Liabilities: Foreign currency forward contracts $ — $ 36 $ — $ 36 Total liabilities at fair value $ — $ 36 $ — $ 36 As of August 26, 2017 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 81,253 $ — $ — $ 81,253 Pension plan assets — 5,097 — 5,097 Total assets at fair value $ 81,253 $ 5,097 $ — $ 86,350 Liabilities: Foreign currency forward contracts $ — $ 177 $ — $ 177 Total liabilities at fair value $ — $ 177 1 $ — $ 177 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 were included in other assets as of November 25, 2017 . 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.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Nov. 25, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities As of November 25, 2017 , the Company had forward contracts with a notional value of approximately 8.3 million CAD outstanding and recorded nominal amounts for the fair value of the contracts in other current liabilities with a corresponding loss in accumulated other comprehensive loss, which was recorded net of tax. During the thirteen weeks ended November 25, 2017 , the Company reclassified a nominal amount from accumulated other comprehensive loss to revenue, related to the derivative financial instruments. The loss in accumulated other comprehensive loss as of November 25, 2017 is expected to be reclassified to revenues prior to its maturity on February 22, 2019 .

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Nov. 25, 2017
Postemployment Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans Defined Contribution Retirement Savings Plan The Company has a defined contribution retirement savings plan with a 401(k) feature for all eligible U.S and Canadian employees not under collective bargaining agreements. The Company matches a portion of the employee’s contribution and may make an additional contribution at its discretion. Contributions charged to expense under the plan for the thirteen weeks ended November 25, 2017 and November 26, 2016 were $ 4.1 million and $ 3.6 million , respectively. Pension Plans and Supplemental Executive Retirement Plans The Company maintains an unfunded Supplemental Executive Retirement Plan for certain eligible employees of the Company, a non-contributory defined benefit pension plan covering union employees at one of its locations, and a frozen pension plan the Company assumed in connection with its acquisition of Textilease Corporation in fiscal 2004. The amounts charged to expense related to these plans for the thirteen weeks ended November 25, 2017 and November 26, 2016 were $ 0.7 million and $0.9 million , respectively.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Nov. 25, 2017
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The Company calculates net income per share in accordance with US GAAP, which requires the Company to allocate income to its unvested participating securities as part of its earnings per share (“EPS”) calculations. The following table sets forth the computation of basic earnings per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data): Thirteen weeks ended November 25, 2017 November 26, 2016 Net income available to shareholders $ 34,206 $ 28,214 Allocation of net income for Basic: Common Stock $ 27,384 $ 22,342 Class B Common Stock 6,822 5,668 Unvested participating shares — 204 $ 34,206 $ 28,214 Weighted average number of shares for Basic: Common Stock 15,462 15,285 Class B Common Stock 4,816 4,847 Unvested participating shares — 140 20,278 20,272 Earnings per share for Basic: Common Stock $ 1.77 $ 1.46 Class B Common Stock $ 1.42 $ 1.17 The Company is required to calculate diluted EPS for Common Stock using the more dilutive of the following two methods: • The treasury stock method; or • The two-class method assuming a participating security is not exercised or converted. For the thirteen weeks ended November 25, 2017 and November 26, 2016 , the Company’s diluted EPS assumes the conversion of all vested Class B Common Stock into Common Stock and uses the two-class method for its unvested participating shares. The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen weeks ended November 25, 2017 and November 26, 2016 (in thousands, except per share data): Thirteen weeks ended Thirteen weeks ended Earnings to Common shareholders Common Shares EPS Earnings to Common shareholders Common Shares EPS As reported - Basic $ 27,384 15,462 $ 1.77 $ 22,342 15,285 $ 1.46 Add: effect of dilutive potential common shares Share-Based Awards — 156 — 117 Class B Common Stock 6,822 4,816 5,668 4,847 Add: Undistributed earnings allocated to unvested participating shares — — 199 — Less: Undistributed earnings reallocated to unvested participating shares — — (189 ) — Diluted EPS – Common Stock $ 34,206 20,434 $ 1.67 $ 28,020 20,249 $ 1.38 Share-based awards that would result in the issuance of 117 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 25, 2017 because they were anti-dilutive. There were no share-based awards that were excluded from the calculation of diluted earnings per share for the thirteen weeks ended November 26, 2016 because they were anti-dilutive.

Inventories

Inventories	3 Months Ended
	Nov. 25, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories 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 November 25, 2017 and August 26, 2017 were as follows (in thousands): November 25, August 26, 2017 Raw materials $ 14,899 $ 18,468 Work in process 3,605 4,159 Finished goods 63,468 56,441 Total inventories $ 81,972 $ 79,068

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Nov. 25, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets As discussed in Note 3, “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 changes in the carrying amount of goodwill are as follows (in thousands): Balance as of August 26, 2017 $ 376,110 Goodwill recorded during the period 1,045 Other (51 ) Balance as of November 25, 2017 $ 377,104 Intangible assets, net in the Company’s accompanying Consolidated Balance Sheets are as follows (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount November 25, 2017 Customer contracts $ 209,221 $ 143,996 $ 65,225 Other intangible assets 34,584 30,353 4,231 $ 243,805 $ 174,349 $ 69,456 August 26, 2017 Customer contracts $ 208,711 $ 141,226 $ 67,485 Other intangible assets 34,249 29,990 4,259 $ 242,960 $ 171,216 $ 71,744

Asset Retirement Obligations

Asset Retirement Obligations	3 Months Ended
	Nov. 25, 2017
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations 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-six years. A reconciliation of the Company’s asset retirement liability for the thirteen weeks ended November 25, 2017 was as follows (in thousands): November 25, 2017 Beginning balance as of August 26, 2017 $ 13,400 Accretion expense 240 Effect of exchange rate changes 20 Change in estimate (228 ) Ending balance as of November 25, 2017 $ 13,432 Asset retirement obligations are included in current and long-term accrued liabilities in the accompanying Consolidated Balance Sheets.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Nov. 25, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and 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. Over the years, the Company has settled, or contributed to the settlement of, actions or claims brought against the Company relating to the disposal of hazardous materials and there can be no assurance that the Company will not have to expend material amounts to remediate the consequences of any such disposal in the future. US GAAP requires that a liability for contingencies be recorded when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required to determine the existence of a liability, as well as the amount to be recorded. The Company regularly consults with attorneys and outside consultants in its consideration of the relevant facts and circumstances before recording a contingent liability. Changes in enacted laws, regulatory orders or decrees, management’s estimates of costs, risk-free interest rates, insurance proceeds, participation by other parties, the timing of payments, the input of the Company’s attorneys and outside consultants or other factual circumstances could have a material impact on the amounts recorded for environmental and other contingent liabilities. Under environmental laws, an owner or lessee of real estate may be liable for the costs of removal or remediation of certain hazardous or toxic substances located on, or in, or emanating from, such property, as well as related costs of investigation and property damage. Such laws often impose liability without regard to whether the owner or lessee knew of, or was responsible for the presence of such hazardous or toxic substances. There can be no assurances that acquired or leased locations have been operated in compliance with environmental laws and regulations or that future uses or conditions will not result in the imposition of liability upon the Company under such laws or expose the Company to third-party actions such as tort suits. The Company continues to address environmental conditions under terms of consent orders negotiated with the applicable environmental authorities or otherwise with respect to sites located in or related to Woburn, Massachusetts, Somerville, Massachusetts, Springfield, Massachusetts, Uvalde, Texas, Stockton, California, three sites related to former operations in Williamstown, Vermont, as well as sites located in Goldsboro, North Carolina, Wilmington, North Carolina, and Landover, Maryland. The Company has accrued certain costs related to the sites described above as it has been determined that the costs are probable and can be reasonably estimated. The Company has potential exposure related to a parcel of land (the "Central Area") related to the Woburn, Massachusetts site mentioned above. Currently, the consent decree for the Woburn site does not define or require any remediation work in the Central Area. The United States Environmental Protection Agency (the "EPA") has provided the Company and other signatories to the consent decree with comments on the design and implementation of groundwater and soil remedies at the Woburn site and investigation of environmental conditions in the Central Area. The Company, and other signatories, have implemented and proposed to do additional work at the Woburn site but many of the EPA’s comments remain to be resolved. The Company has accrued costs to perform certain work responsive to EPA's comments. The Company has implemented mitigation measures and continues to monitor environmental conditions at the Somerville, Massachusetts site. In addition, the Company has received demands from the local transit authority for reimbursement of certain costs associated with its construction of a new municipal transit station in the area of the Company’s Somerville site. This station is part of a planned extension of the transit system. The Company has reserved for costs in connection with this matter; however, in light of the uncertainties associated with this matter, these costs and the related reserve may change. The Company has also received notice that the Massachusetts Department of Environmental Protection is conducting an audit of the Company’s investigation and remediation work with respect to the Somerville site. The Company routinely reviews and evaluates sites that may require remediation and monitoring and determines its estimated costs based on various estimates and assumptions. These estimates are developed using its internal sources or by third party environmental engineers or other service providers. Internally developed estimates are based on: • Management’s judgment and experience in remediating and monitoring the Company’s sites; • Information available from regulatory agencies as to costs of remediation and monitoring; • The number, financial resources and relative degree of responsibility of other potentially responsible parties (“PRPs”) who may be liable for remediation and monitoring of a specific site; and • The typical allocation of costs among PRPs. There is usually a range of reasonable estimates of the costs associated with each site. In accordance with US GAAP, the Company’s accruals reflect the amount within the range that it believes is the best estimate or the low end of a range of estimates if no point within the range is a better estimate. Where it believes that both the amount of a particular liability and the timing of the payments are reliably determinable, the Company adjusts the cost in current dollars using a rate of 3% for inflation until the time of expected payment and discounts the cost to present value using current risk-free interest rates. As of November 25, 2017 , the risk-free interest rates utilized by the Company ranged from 2.3% to 2.8% . 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 Consolidated Statements of Income. The changes to the Company’s environmental liabilities for the thirteen weeks ended November 25, 2017 were as follows (in thousands): November 25, 2017 Beginning balance as of August 26, 2017 $ 25,419 Costs incurred for which reserves had been provided (235 ) Insurance proceeds 41 Interest accretion 173 Change in discount rates (37 ) Balance as of November 25, 2017 $ 25,361 Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of November 25, 2017 , for the next five fiscal years and thereafter, as measured in current dollars, are reflected below. (In thousands) 2018 2019 2020 2021 2022 Thereafter Total Estimated costs – current dollars $ 9,050 $ 1,880 $ 1,477 $ 1,305 $ 1,157 $ 12,304 $ 27,173 Estimated insurance proceeds (118 ) (173 ) (159 ) (173 ) (159 ) (993 ) (1,775 ) Net anticipated costs $ 8,932 $ 1,707 $ 1,318 $ 1,132 $ 998 $ 11,311 $ 25,398 Effect of inflation 7,450 Effect of discounting (7,487 ) Balance as of November 25, 2017 $ 25,361 Estimated insurance proceeds are primarily received from an annuity received as part of a legal settlement with an insurance company. Annual proceeds of approximately $ 0.3 million are deposited into an escrow account which funds remediation and monitoring costs for three sites related to former operations in Williamstown, Vermont. Annual proceeds received but not expended in the current year accumulate in this account and may be used in future years for costs related to this site through the year 2027. As of November 25, 2017 , the balance in this escrow account, which is held in a trust and is not recorded in the Company’s accompanying Consolidated Balance Sheet, was approximately $ 3.6 million . Also included in estimated insurance proceeds are amounts the Company is entitled to receive pursuant to legal settlements as reimbursements from three insurance companies for estimated costs at the site in Uvalde, Texas. The Company’s nuclear garment decontamination facilities are licensed by the Nuclear Regulatory Commission (“NRC”), or, in certain cases, by the applicable state agency, and are subject to regulation by federal, state and local authorities. The Company also has nuclear garment decontamination facilities in the United Kingdom and the Netherlands. These facilities are licensed and regulated by the respective country’s applicable federal agency. In the past, scrutiny and regulation of nuclear facilities and related services have resulted in the suspension of operations at certain nuclear facilities served by the Company or disruptions in its ability to service such facilities.There can be no assurance that such regulation will not lead to material disruptions in the Company’s garment decontamination business. From time to time, the Company is also subject to legal proceedings and claims arising from the conduct of its business operations, including personal injury claims, customer contract matters, employment claims and environmental matters as described above. While it is impossible 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 US 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.

Income Taxes

Income Taxes	3 Months Ended
	Nov. 25, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective income tax rate was 35.5% and 38.8% for the thirteen weeks ended November 25, 2017 and the thirteen weeks ended November 26, 2016 respectively. The rate for the thirteen weeks ended November 25, 2017 includes $ 1.6 million of discrete tax benefits related to the adoption of new accounting guidance during the first quarter of fiscal 2018 discussed in Note 2 that requires tax effects of exercised or vested awards to be treated as discrete items in the reporting period in which they occur. Prior to fiscal 2018, these excess tax benefits were recorded as increases to capital surplus in shareholders' equity. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense which is consistent with the recognition of these items in prior reporting periods. During the thirteen weeks ended November 25, 2017 , there were no material changes in the amount of unrecognized tax benefits or the amount accrued for interest and penalties. All U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2012 and 2009, respectively, and the Company has concluded an audit of U.S. federal income taxes for 2010 and 2011. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2013. 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. On December 22, 2017, H.R.1, an Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, also known as the Tax Cuts and Jobs Act, (the “Act”) was enacted, which, among other provisions, reduces the U.S. federal corporate income tax rate effective January 1, 2018 from its current 35% rate to a new 21% corporate rate and impose a one-time transition tax on assets held outside of the United States. The Company has not yet completed its evaluation of the impact of the changes in the tax bill but expects the net impact of these changes will be favorable to its financial results in future fiscal quarters.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Nov. 25, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt On April 11, 2016, the Company entered into an amended and restated $ 250 million unsecured revolving credit agreement (the “Credit Agreement”) with a syndicate of banks, which matures on April 11, 2021 . Under the Credit Agreement, the Company is able to 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 as defined in the Credit Agreement. The Company tests its compliance with these financial covenants on a fiscal quarterly basis. At November 25, 2017 , the interest rates applicable to the Company’s borrowings under the Credit Agreement would be calculated as LIBOR plus 75 basis points at the time of the respective borrowing. As of November 25, 2017 , the Company had no outstanding borrowings and had outstanding letters of credit amounting to $ 77.6 million , leaving $ 172.4 million available for borrowing under the Credit Agreement. As of November 25, 2017 , the Company was in compliance with all covenants under the Credit Agreement.

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income	3 Months Ended
	Nov. 25, 2017
Stockholders' Equity Note [Abstract]
Accumulated Other Comprehensive (Loss) Income	Accumulated Other Comprehensive (Loss) Income The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen weeks ended November 25, 2017 and November 26, 2016 were as follows (in thousands): Thirteen weeks ended November 25, 2017 Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of August 26, 2017 $ (15,932 ) $ (5,477 ) $ (109 ) $ (21,518 ) Other comprehensive (loss) income before reclassification (2,013 ) — 82 (1,931 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 4 4 Net current period other comprehensive (loss) income (2,013 ) — 86 (1,927 ) Balance as of November 25, 2017 $ (17,945 ) $ (5,477 ) $ (23 ) $ (23,445 ) Thirteen weeks ended November 26, 2016 Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of August 27, 2016 $ (20,814 ) $ (8,251 ) $ 116 $ (28,949 ) Other comprehensive (loss) income before reclassification (5,129 ) — 324 (4,805 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (76 ) (76 ) Net current period other comprehensive (loss) income (5,129 ) — 248 (4,881 ) Balance as of November 26, 2016 $ (25,943 ) $ (8,251 ) $ 364 $ (33,830 ) (1) Amounts are shown net of tax Amounts reclassified from accumulated other comprehensive loss, net of tax, for the thirteen weeks ended November 25, 2017 and November 26, 2016 were as follows (in thousands): Thirteen weeks ended November 25, 2017 November 26, 2016 Derivative financial instruments, net: Forward contracts (a) $ 4 $ (76 ) Total, net of tax 4 (76 ) Total amounts reclassified, net of tax $ 4 $ (76 ) (a) Amounts included in revenues in the accompanying Consolidated Statements of Income.

Segment Reporting

Segment Reporting	3 Months Ended
	Nov. 25, 2017
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance. The Company’s chief operating decision maker is the Company’s Chief Executive Officer. The Company has six operating segments based on the information reviewed by its Chief Executive Officer: US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (“MFG”), Corporate, Specialty Garments Rental and Cleaning (“Specialty Garments”) and First Aid. The US Rental and Cleaning and Canadian Rental and Cleaning operating segments have been combined to form the US and Canadian Rental and Cleaning reporting segment, and as a result, the Company has five reporting segments. The US and Canadian Rental and Cleaning reporting segment purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the United States and Canada. The laundry locations of the US and Canadian Rental and Cleaning reporting segment are referred to by the Company as “industrial laundries” or “industrial laundry locations.” The MFG operating segment designs and manufactures uniforms and non-garment items primarily for the purpose of providing these goods to the US and Canadian Rental and Cleaning reporting segment. MFG revenues are generated when goods are shipped from the Company’s manufacturing facilities, or its subcontract manufacturers, to other Company locations. These revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost. Manufactured products are carried in inventory until placed in service at which time they are amortized at this transfer price. On a consolidated basis, intercompany revenues and income are eliminated and the carrying value of inventories and rental merchandise in service is reduced to the manufacturing cost. Income before income taxes from MFG net of the intercompany MFG elimination offsets the merchandise amortization costs incurred by the US and Canadian Rental and Cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from MFG at the transfer price which is above the Company’s manufacturing cost. The Corporate operating segment consists of costs associated with the Company’s distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense. The revenues generated from the Corporate operating segment represent certain direct sales made by the Company directly from its distribution center. The products sold by this operating segment are the same products rented and sold by the US and Canadian Rental and Cleaning reporting segment. The majority of expenses accounted for within the Corporate segment relate to costs of the US and Canadian Rental and Cleaning segment, with the remainder of the costs relating to the Specialty Garment and First Aid segments. The Specialty Garments operating segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear and cleanroom applications and provides cleanroom cleaning services at limited customer locations. The First Aid operating segment sells first aid cabinet services and other safety supplies as well as maintains wholesale distribution and pill packaging operations. The Company refers to the US and Canadian Rental and Cleaning, MFG, and Corporate reporting segments combined as its “Core Laundry Operations,” which is included as a subtotal in the following tables (in thousands): Thirteen weeks ended US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total November 25, 2017 Revenues $ 365,518 $ 63,945 $ (63,919 ) $ 8,252 $ 373,796 $ 28,427 $ 13,555 $ 415,778 Income (loss) from operations $ 54,798 $ 23,987 $ (4,737 ) $ (27,690 ) $ 46,358 $ 4,477 $ 1,076 $ 51,911 Interest (income) expense, net $ (949 ) $ — $ — $ (327 ) $ (1,276 ) $ — $ — $ (1,276 ) Income (loss) before taxes $ 55,764 $ 23,910 $ (4,737 ) $ (27,333 ) $ 47,604 $ 4,353 $ 1,076 $ 53,033 November 26, 2016 Revenues $ 344,481 $ 48,862 $ (48,804 ) $ 7,304 $ 351,843 $ 22,356 $ 11,909 $ 386,108 Income (loss) from operations $ 52,827 $ 18,207 $ (939 ) $ (26,422 ) $ 43,673 $ 1,151 $ 933 $ 45,757 Interest (income) expense, net $ (834 ) $ — $ — $ 33 $ (801 ) $ — $ — $ (801 ) Income (loss) before taxes $ 53,708 $ 18,222 $ (939 ) $ (26,580 ) $ 44,411 $ 720 $ 933 $ 46,064

Recent Accounting Pronounceme22

Recent Accounting Pronouncements (Policies)	3 Months Ended
	Nov. 25, 2017
Accounting Policies [Abstract]
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board ("FASB") issued updated accounting guidance for revenue recognition, which they have subsequently modified. This modified update provides a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company has established an implementation team and is working on the completion of its project plan to address the requirements of this standard. The Company is currently reviewing its customer contracts, assessing its incremental costs of obtaining customer contracts, and identifying any potential changes to business processes and controls to support accounting and disclosure considerations under this standard. The Company expects to adopt this standard using the modified retrospective adoption method and continues to evaluate the impact that this guidance will have on its financial statements and related disclosures. In July 2015, the FASB issued updated guidance which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value. Subsequent measurement is unchanged for inventory measured using last-in, first-out or the retail inventory method. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016, and is to be applied prospectively, with early adoption permitted. Accordingly, the Company adopted this standard on August 27, 2017. The adoption of this guidance did not have a material impact on its financial statements. In January 2016, the FASB issued updated guidance for the recognition, measurement, presentation, and disclosure of certain financial assets and liabilities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company expects that adoption of this guidance will not have a material impact on its financial statements. In February 2016, the FASB issued updated guidance that improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. Accordingly, the standard will be effective for the Company on September 1, 2019. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures. In March 2016, the FASB issued updated guidance that simplifies several aspects of accounting for share-based payment transactions. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016 and, depending on the amendment, must be applied using a prospective transition method, retrospective transition method, modified retrospective transition method, prospectively and/or retroactively, with early adoption permitted. Accordingly, the Company adopted this standard on August 27, 2017. The adoption impact on the consolidated balance sheet as of November 25, 2017 was a cumulative-effect adjustment of $0.7 million , decreasing retained earnings and increasing capital surplus. The impact of the adoption on the consolidated statement of income was a decrease of $1.6 million in income taxes during the thirteen weeks ended November 25, 2017. As a result of the adoption of the updated guidance, our excess tax benefit is no longer included in our calculation of diluted shares under the treasury stock method, resulting in an increase of a nominal amount of shares in the effect of dilutive securities for the thirteen weeks ended November 25, 2017. The election to recognize forfeitures of share-based awards as they occur resulted in an increase of $0.1 million in share-based compensation for the thirteen weeks ended November 25, 2017. Prior periods have not been adjusted. In August 2016, the FASB issued updated guidance that reduces diversity in how certain cash receipts and cash payments are presented and classified in the Consolidated Statements of Cash Flows. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017 and will be required to be applied retrospectively, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures. In October 2016, the FASB issued updated guidance to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2017 and will be required to be applied on a modified retrospective basis, with early adoption permitted. Accordingly, the standard will be effective for the Company on August 26, 2018. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Nov. 25, 2017
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 November 25, 2017 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 78,952 $ — $ — $ 78,952 Pension plan assets — 5,048 — 5,048 Total assets at fair value $ 78,952 $ 5,048 $ — $ 84,000 Liabilities: Foreign currency forward contracts $ — $ 36 $ — $ 36 Total liabilities at fair value $ — $ 36 $ — $ 36 As of August 26, 2017 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 81,253 $ — $ — $ 81,253 Pension plan assets — 5,097 — 5,097 Total assets at fair value $ 81,253 $ 5,097 $ — $ 86,350 Liabilities: Foreign currency forward contracts $ — $ 177 $ — $ 177 Total liabilities at fair value $ — $ 177 1 $ — $ 177

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Nov. 25, 2017
Earnings Per Share [Abstract]
Schedule of Computation of Basic Earnings Per Share	The following table sets forth the computation of basic earnings per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data): Thirteen weeks ended November 25, 2017 November 26, 2016 Net income available to shareholders $ 34,206 $ 28,214 Allocation of net income for Basic: Common Stock $ 27,384 $ 22,342 Class B Common Stock 6,822 5,668 Unvested participating shares — 204 $ 34,206 $ 28,214 Weighted average number of shares for Basic: Common Stock 15,462 15,285 Class B Common Stock 4,816 4,847 Unvested participating shares — 140 20,278 20,272 Earnings per share for Basic: Common Stock $ 1.77 $ 1.46 Class B Common Stock $ 1.42 $ 1.17
Schedule of Computation of Diluted Earnings Per Share	The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen weeks ended November 25, 2017 and November 26, 2016 (in thousands, except per share data): Thirteen weeks ended Thirteen weeks ended Earnings to Common shareholders Common Shares EPS Earnings to Common shareholders Common Shares EPS As reported - Basic $ 27,384 15,462 $ 1.77 $ 22,342 15,285 $ 1.46 Add: effect of dilutive potential common shares Share-Based Awards — 156 — 117 Class B Common Stock 6,822 4,816 5,668 4,847 Add: Undistributed earnings allocated to unvested participating shares — — 199 — Less: Undistributed earnings reallocated to unvested participating shares — — (189 ) — Diluted EPS – Common Stock $ 34,206 20,434 $ 1.67 $ 28,020 20,249 $ 1.38

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Nov. 25, 2017
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	The components of inventory as of November 25, 2017 and August 26, 2017 were as follows (in thousands): November 25, August 26, 2017 Raw materials $ 14,899 $ 18,468 Work in process 3,605 4,159 Finished goods 63,468 56,441 Total inventories $ 81,972 $ 79,068

Goodwill and Other Intangible26

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Nov. 25, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
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 26, 2017 $ 376,110 Goodwill recorded during the period 1,045 Other (51 ) Balance as of November 25, 2017 $ 377,104
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 November 25, 2017 Customer contracts $ 209,221 $ 143,996 $ 65,225 Other intangible assets 34,584 30,353 4,231 $ 243,805 $ 174,349 $ 69,456 August 26, 2017 Customer contracts $ 208,711 $ 141,226 $ 67,485 Other intangible assets 34,249 29,990 4,259 $ 242,960 $ 171,216 $ 71,744

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	3 Months Ended
	Nov. 25, 2017
Asset Retirement Obligation Disclosure [Abstract]
Reconciliation of Asset Retirement Liability	A reconciliation of the Company’s asset retirement liability for the thirteen weeks ended November 25, 2017 was as follows (in thousands): November 25, 2017 Beginning balance as of August 26, 2017 $ 13,400 Accretion expense 240 Effect of exchange rate changes 20 Change in estimate (228 ) Ending balance as of November 25, 2017 $ 13,432

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Nov. 25, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Changes to Environmental Liabilities	The changes to the Company’s environmental liabilities for the thirteen weeks ended November 25, 2017 were as follows (in thousands): November 25, 2017 Beginning balance as of August 26, 2017 $ 25,419 Costs incurred for which reserves had been provided (235 ) Insurance proceeds 41 Interest accretion 173 Change in discount rates (37 ) Balance as of November 25, 2017 $ 25,361
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 November 25, 2017 , for the next five fiscal years and thereafter, as measured in current dollars, are reflected below. (In thousands) 2018 2019 2020 2021 2022 Thereafter Total Estimated costs – current dollars $ 9,050 $ 1,880 $ 1,477 $ 1,305 $ 1,157 $ 12,304 $ 27,173 Estimated insurance proceeds (118 ) (173 ) (159 ) (173 ) (159 ) (993 ) (1,775 ) Net anticipated costs $ 8,932 $ 1,707 $ 1,318 $ 1,132 $ 998 $ 11,311 $ 25,398 Effect of inflation 7,450 Effect of discounting (7,487 ) Balance as of November 25, 2017 $ 25,361

Accumulated Other Comprehensi29

Accumulated Other Comprehensive (Loss) Income (Tables)	3 Months Ended
	Nov. 25, 2017
Stockholders' Equity Note [Abstract]
Schedule of Changes in Components of Accumulated Other Comprehensive Loss, Net of Tax	The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen weeks ended November 25, 2017 and November 26, 2016 were as follows (in thousands): Thirteen weeks ended November 25, 2017 Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of August 26, 2017 $ (15,932 ) $ (5,477 ) $ (109 ) $ (21,518 ) Other comprehensive (loss) income before reclassification (2,013 ) — 82 (1,931 ) Amounts reclassified from accumulated other comprehensive (loss) income — — 4 4 Net current period other comprehensive (loss) income (2,013 ) — 86 (1,927 ) Balance as of November 25, 2017 $ (17,945 ) $ (5,477 ) $ (23 ) $ (23,445 ) Thirteen weeks ended November 26, 2016 Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of August 27, 2016 $ (20,814 ) $ (8,251 ) $ 116 $ (28,949 ) Other comprehensive (loss) income before reclassification (5,129 ) — 324 (4,805 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (76 ) (76 ) Net current period other comprehensive (loss) income (5,129 ) — 248 (4,881 ) Balance as of November 26, 2016 $ (25,943 ) $ (8,251 ) $ 364 $ (33,830 ) (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 the thirteen weeks ended November 25, 2017 and November 26, 2016 were as follows (in thousands): Thirteen weeks ended November 25, 2017 November 26, 2016 Derivative financial instruments, net: Forward contracts (a) $ 4 $ (76 ) Total, net of tax 4 (76 ) Total amounts reclassified, net of tax $ 4 $ (76 ) (a) Amounts included in revenues in the accompanying Consolidated Statements of Income.

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Nov. 25, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	The Company refers to the US and Canadian Rental and Cleaning, MFG, and Corporate reporting segments combined as its “Core Laundry Operations,” which is included as a subtotal in the following tables (in thousands): Thirteen weeks ended US and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total November 25, 2017 Revenues $ 365,518 $ 63,945 $ (63,919 ) $ 8,252 $ 373,796 $ 28,427 $ 13,555 $ 415,778 Income (loss) from operations $ 54,798 $ 23,987 $ (4,737 ) $ (27,690 ) $ 46,358 $ 4,477 $ 1,076 $ 51,911 Interest (income) expense, net $ (949 ) $ — $ — $ (327 ) $ (1,276 ) $ — $ — $ (1,276 ) Income (loss) before taxes $ 55,764 $ 23,910 $ (4,737 ) $ (27,333 ) $ 47,604 $ 4,353 $ 1,076 $ 53,033 November 26, 2016 Revenues $ 344,481 $ 48,862 $ (48,804 ) $ 7,304 $ 351,843 $ 22,356 $ 11,909 $ 386,108 Income (loss) from operations $ 52,827 $ 18,207 $ (939 ) $ (26,422 ) $ 43,673 $ 1,151 $ 933 $ 45,757 Interest (income) expense, net $ (834 ) $ — $ — $ 33 $ (801 ) $ — $ — $ (801 ) Income (loss) before taxes $ 53,708 $ 18,222 $ (939 ) $ (26,580 ) $ 44,411 $ 720 $ 933 $ 46,064

Recent Accounting Pronounceme31

Recent Accounting Pronouncements - Narrative (Details) $ in Millions	3 Months Ended
	Nov. 25, 2017USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Discrete tax benefits related to adoption new policy	$ 1.6
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock based compensation, increase	0.1
Retained Earnings | Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment, increase (decrease)	(0.7)
Additional Paid-in Capital | Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment, increase (decrease)	$ 0.7

Business Acquisitions - Narrati

Business Acquisitions - Narrative (Details) $ in Millions	3 Months Ended
	Nov. 25, 2017USD ($)business
Business Combinations [Abstract]
Number of business acquisitions completed | business	2
Business acquisitions aggregate purchase price | $	$ 2.7

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Nov. 25, 2017	Aug. 26, 2017
Assets:
Cash equivalents	$ 78,952	$ 81,253
Pension plan assets	5,048	5,097
Total assets at fair value	84,000	86,350
Liabilities:
Foreign currency forward contracts	36	177
Total liabilities at fair value	36	177
Level 1
Assets:
Cash equivalents	78,952	81,253
Pension plan assets	0	0
Total assets at fair value	78,952	81,253
Liabilities:
Foreign currency forward contracts	0	0
Total liabilities at fair value	0	0
Level 2
Assets:
Cash equivalents	0	0
Pension plan assets	5,048	5,097
Total assets at fair value	5,048	5,097
Liabilities:
Foreign currency forward contracts	36	177
Total liabilities at fair value	36	177
Level 3
Assets:
Cash equivalents	0	0
Pension plan assets	0	0
Total assets at fair value	0	0
Liabilities:
Foreign currency forward contracts	0	0
Total liabilities at fair value	$ 0	$ 0

Derivative Instruments and He34

Derivative Instruments and Hedging Activities - Narrative (Details) CAD in Millions	Nov. 25, 2017CAD
Forward Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value	CAD 8.3

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Postemployment Benefits [Abstract]
Contributions charged to expense under the plan	$ 4.1	$ 3.6
Amounts charged to expense related to the plans	$ 0.7	$ 0.9

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Computation of Basic Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income available to shareholders	$ 34,206	$ 28,214
Allocation of net income for Basic:
Common Stock	$ 34,206	$ 28,214
Weighted average number of shares for Basic:
Common Stock (in shares)	20,278	20,272
Common Stock
Allocation of net income for Basic:
Common Stock	$ 27,384	$ 22,342
Weighted average number of shares for Basic:
Common Stock (in shares)	15,462	15,285
Earnings per share for Basic:
Common Stock (in dollars per share)	$ 1.77	$ 1.46
Class B Common Stock
Allocation of net income for Basic:
Common Stock	$ 6,822	$ 5,668
Weighted average number of shares for Basic:
Common Stock (in shares)	4,816	4,847
Earnings per share for Basic:
Common Stock (in dollars per share)	$ 1.42	$ 1.17
Unvested participating shares
Allocation of net income for Basic:
Common Stock	$ 0	$ 204
Weighted average number of shares for Basic:
Common Stock (in shares)	0	140

Net Income Per Share - Schedu37

Net Income Per Share - Schedule of Computation of Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
As reported - Basic	$ 34,206	$ 28,214
As reported - Basic (in shares)	20,278	20,272
Add: Undistributed earnings allocated to unvested participating shares	$ 0	$ 199
Less: Undistributed earnings reallocated to unvested participating shares	0	(189)
Diluted EPS – Common Stock	$ 34,206	$ 28,020
Diluted EPS – Common Stock (in shares)	20,434	20,249
Diluted EPS – Common Stock (in dollars per share)	$ 1.67	$ 1.38
Common Stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
As reported - Basic	$ 27,384	$ 22,342
As reported - Basic (in shares)	15,462	15,285
As reported - Basic (in dollars per share)	$ 1.77	$ 1.46
Add: effect of dilutive potential common shares	$ 0	$ 0
Add: effect of dilutive potential common shares (in shares)	156	117
Class B Common Stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
As reported - Basic	$ 6,822	$ 5,668
As reported - Basic (in shares)	4,816	4,847
As reported - Basic (in dollars per share)	$ 1.42	$ 1.17
Add: effect of dilutive potential common shares	$ 6,822	$ 5,668
Add: effect of dilutive potential common shares (in shares)	4,816	4,847

Net Income Per Share - Narrativ

Net Income Per Share - Narrative (Details) - shares	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)	117	0

Inventories - Components of Inv

Inventories - Components of Inventory (Details) - USD ($) $ in Thousands	Nov. 25, 2017	Aug. 26, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 14,899	$ 18,468
Work in process	3,605	4,159
Finished goods	63,468	56,441
Total inventories	$ 81,972	$ 79,068

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Nov. 25, 2017USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 376,110
Goodwill recorded during the period	1,045
Other	(51)
Ending balance	$ 377,104

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Nov. 25, 2017	Aug. 26, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 243,805	$ 242,960
Accumulated Amortization	174,349	171,216
Net Carrying Amount	69,456	71,744
Customer contracts
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	209,221	208,711
Accumulated Amortization	143,996	141,226
Net Carrying Amount	65,225	67,485
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	34,584	34,249
Accumulated Amortization	30,353	29,990
Net Carrying Amount	$ 4,231	$ 4,259

Asset Retirement Obligations -

Asset Retirement Obligations - Narrative (Details)	3 Months Ended
	Nov. 25, 2017
Minimum
Asset Retirement Obligations [Line Items]
Remaining lives	1 year
Maximum
Asset Retirement Obligations [Line Items]
Remaining lives	26 years

Asset Retirement Obligations 43

Asset Retirement Obligations - Reconciliation of Asset Retirement Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	$ 13,400
Accretion expense	240	$ 205
Effect of exchange rate changes	20
Change in estimate	(228)
Ending balance	$ 13,432

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	3 Months Ended
	Nov. 25, 2017USD ($)sitecompany
Gain Contingencies [Line Items]
Estimated rate of inflation	3.00%
Annual proceeds	$ 0.3
Balance in escrow account	$ 3.6
Number of insurance companies | company	3
Minimum
Gain Contingencies [Line Items]
Risk-free interest rates utilized	2.30%
Maximum
Gain Contingencies [Line Items]
Risk-free interest rates utilized	2.80%
Williamstown, Vermont
Gain Contingencies [Line Items]
Number of sites related to former operations | site	3

Commitments and Contingencies45

Commitments and Contingencies - Changes to Environmental Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Accrual for Environmental Loss Contingencies [Roll Forward]
Beginning balance	$ 25,419
Costs incurred for which reserves had been provided	(235)
Insurance proceeds	41
Interest accretion	173	$ 150
Change in discount rates	(37)
Ending balance	$ 25,361

Commitments and Contingencies46

Commitments and Contingencies - Anticipated Payments and Insurance Proceeds of Identified Environmental Remediation Liabilities (Details) - USD ($) $ in Thousands	Nov. 25, 2017	Aug. 26, 2017
Estimated costs – current dollars
2,018	$ 9,050
2,019	1,880
2,020	1,477
2,021	1,305
2,022	1,157
Thereafter	12,304
Total	27,173
Estimated insurance proceeds
2,018	(118)
2,019	(173)
2,020	(159)
2,021	(173)
2,022	(159)
Thereafter	(993)
Total	(1,775)
Net anticipated costs
2,018	8,932
2,019	1,707
2,020	1,318
2,021	1,132
2,022	998
Thereafter	11,311
Total	25,398
Effect of inflation	7,450
Effect of discounting	(7,487)
Balance at end of period	$ 25,361	$ 25,419

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	Jan. 01, 2018	Nov. 25, 2017	Nov. 26, 2016
Income Tax Disclosure [Abstract]
Effective income tax rate		35.50%	38.80%
Discrete tax benefits related to adoption new policy		$ 1.6
Subsequent Event [Line Items]
U.S. federal income tax rate		35.00%
Subsequent event
Subsequent Event [Line Items]
U.S. federal income tax rate	21.00%

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - Credit Agreement - USD ($)	3 Months Ended
	Nov. 25, 2017	Apr. 11, 2016
LIBOR
Debt Instrument [Line Items]
Basis points	0.75%
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 250,000,000
Maturity date	Apr. 11, 2021
Outstanding borrowings	$ 0
Outstanding letters of credit	77,600,000
Amount available for borrowing	$ 172,400,000

Accumulated Other Comprehensi49

Accumulated Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 1,453,192
Other comprehensive (loss) income before reclassification	(1,931)	$ (4,805)
Amounts reclassified from accumulated other comprehensive (loss) income	4	(76)
Other comprehensive loss	(1,927)	(4,881)
Ending balance	1,485,608
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(15,932)	(20,814)
Other comprehensive (loss) income before reclassification	(2,013)	(5,129)
Amounts reclassified from accumulated other comprehensive (loss) income	0	0
Other comprehensive loss	(2,013)	(5,129)
Ending balance	(17,945)	(25,943)
Pension-related
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(5,477)	(8,251)
Other comprehensive (loss) income before reclassification	0	0
Amounts reclassified from accumulated other comprehensive (loss) income	0	0
Other comprehensive loss	0	0
Ending balance	(5,477)	(8,251)
Derivative Financial Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(109)	116
Other comprehensive (loss) income before reclassification	82	324
Amounts reclassified from accumulated other comprehensive (loss) income	4	(76)
Other comprehensive loss	86	248
Ending balance	(23)	364
Total Accumulated Other Comprehensive (Loss) Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(21,518)	(28,949)
Ending balance	$ (23,445)	$ (33,830)

Accumulated Other Comprehensi50

Accumulated Other Comprehensive (Loss) Income - Amounts Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total amounts reclassified, net of tax	$ 4	$ (76)
Derivative Financial Instruments, Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total amounts reclassified, net of tax	4	(76)
Derivative Financial Instruments, Net | Forward Contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total amounts reclassified, net of tax	$ 4	$ (76)

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	3 Months Ended
	Nov. 25, 2017segment
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	3 Months Ended
	Nov. 25, 2017	Nov. 26, 2016
Segment Reporting Information [Line Items]
Revenues	$ 415,778	$ 386,108
Income (loss) from operations	51,911	45,757
Interest (income) expense, net	(1,276)	(801)
Income (loss) before taxes	53,033	46,064
US and Canadian Rental and Cleaning | Operating Segments
Segment Reporting Information [Line Items]
Revenues	365,518	344,481
Income (loss) from operations	54,798	52,827
Interest (income) expense, net	(949)	(834)
Income (loss) before taxes	55,764	53,708
MFG | Operating Segments
Segment Reporting Information [Line Items]
Revenues	63,945	48,862
Income (loss) from operations	23,987	18,207
Interest (income) expense, net	0	0
Income (loss) before taxes	23,910	18,222
MFG | Net Interco MFG Elim
Segment Reporting Information [Line Items]
Revenues	(63,919)	(48,804)
Income (loss) from operations	(4,737)	(939)
Interest (income) expense, net	0	0
Income (loss) before taxes	(4,737)	(939)
Corporate | Operating Segments
Segment Reporting Information [Line Items]
Revenues	8,252	7,304
Income (loss) from operations	(27,690)	(26,422)
Interest (income) expense, net	(327)	33
Income (loss) before taxes	(27,333)	(26,580)
Subtotal Core Laundry Operations
Segment Reporting Information [Line Items]
Revenues	373,796	351,843
Income (loss) from operations	46,358	43,673
Interest (income) expense, net	(1,276)	(801)
Income (loss) before taxes	47,604	44,411
Specialty Garments | Operating Segments
Segment Reporting Information [Line Items]
Revenues	28,427	22,356
Income (loss) from operations	4,477	1,151
Interest (income) expense, net	0	0
Income (loss) before taxes	4,353	720
First Aid | Operating Segments
Segment Reporting Information [Line Items]
Revenues	13,555	11,909
Income (loss) from operations	1,076	933
Interest (income) expense, net	0	0
Income (loss) before taxes	$ 1,076	$ 933