Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Feb. 24, 2018 | Mar. 30, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | Unifirst Corporation | |
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 | Feb. 24, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 15,420,788 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,711,009 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | ||
Revenues | $ 419,264 | $ 391,427 | $ 835,042 | $ 777,535 | |
Operating expenses: | |||||
Cost of revenues | [1] | 265,400 | 249,280 | 519,050 | 488,045 |
Selling and administrative expenses | [1] | 88,648 | 84,861 | 176,158 | 164,307 |
Depreciation and amortization | 23,264 | 21,140 | 45,971 | 43,280 | |
Total operating expenses | 377,312 | 355,281 | 741,179 | 695,632 | |
Operating income | 41,952 | 36,146 | 93,863 | 81,903 | |
Other (income) expense: | |||||
Interest income, net | (1,430) | (1,120) | (2,706) | (1,921) | |
Other (income) expense, net | (186) | (108) | (32) | 386 | |
Total other income, net | (1,616) | (1,228) | (2,738) | (1,535) | |
Income before income taxes | 43,568 | 37,374 | 96,601 | 83,438 | |
(Benefit) provision for income taxes | (14,810) | 14,858 | 4,017 | 32,708 | |
Net income | $ 58,378 | $ 22,516 | $ 92,584 | $ 50,730 | |
Income per share – Diluted: | |||||
Common Stock (in dollars per share) | $ 2.85 | $ 1.10 | $ 4.53 | $ 2.49 | |
Income allocated to – Basic: | |||||
Common Stock | $ 58,378 | $ 22,516 | $ 92,584 | $ 50,730 | |
Income allocated to – Diluted: | |||||
Common Stock | $ 58,378 | $ 22,362 | $ 92,584 | $ 50,381 | |
Weighted average number of shares outstanding – Basic: | |||||
Common Stock (in shares) | 20,297 | 20,290 | 20,287 | 20,281 | |
Weighted average number of shares outstanding – Diluted: | |||||
Common Stock (in shares) | 20,463 | 20,263 | 20,434 | 20,250 | |
Common Stock | |||||
Income per share – Basic: | |||||
Common Stock (in dollars per share) | $ 3.02 | $ 1.17 | $ 4.79 | $ 2.63 | |
Income allocated to – Basic: | |||||
Common Stock | $ 46,744 | $ 17,836 | $ 74,126 | $ 40,178 | |
Weighted average number of shares outstanding – Basic: | |||||
Common Stock (in shares) | 15,481 | 15,305 | 15,471 | 15,295 | |
Dividends per share: | |||||
Common Stock (in dollars per share) | $ 0.0375 | $ 0.0375 | $ 0.075 | $ 0.075 | |
Class B Common Stock | |||||
Income per share – Basic: | |||||
Common Stock (in dollars per share) | $ 2.42 | $ 0.93 | $ 3.83 | $ 2.10 | |
Income allocated to – Basic: | |||||
Common Stock | $ 11,634 | $ 4,518 | $ 18,458 | $ 10,184 | |
Weighted average number of shares outstanding – Basic: | |||||
Common Stock (in shares) | 4,816 | 4,846 | 4,816 | 4,846 | |
Dividends per share: | |||||
Common Stock (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.06 | |
[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 | 6 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 58,378 | $ 22,516 | $ 92,584 | $ 50,730 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 1,250 | 3,332 | (763) | (1,797) |
Pension benefit liabilities | (1,192) | 0 | (1,192) | 0 |
Change in fair value of derivatives, net of income taxes | (23) | (202) | 59 | 122 |
Derivative financial instruments reclassified to earnings | 10 | (27) | 14 | (103) |
Other comprehensive income (loss) | 45 | 3,103 | (1,882) | (1,778) |
Comprehensive income | $ 58,423 | $ 25,619 | $ 90,702 | $ 48,952 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 24, 2018 | Aug. 26, 2017 |
Current assets: | ||
Cash, cash equivalents and short-term investments | $ 387,691 | $ 349,752 |
Receivables, less reserves of $11,538 and $8,719 | 195,283 | 187,174 |
Inventories | 84,509 | 79,068 |
Rental merchandise in service | 152,669 | 151,340 |
Prepaid taxes | 9,407 | 29,968 |
Prepaid expenses and other current assets | 24,945 | 16,924 |
Total current assets | 854,504 | 814,226 |
Property, plant and equipment, net of accumulated depreciation of $730,702 and $702,325 | 543,342 | 525,115 |
Goodwill | 389,465 | 376,110 |
Customer contracts, net | 68,333 | 67,485 |
Other intangible assets, net | 4,104 | 4,259 |
Deferred income taxes | 418 | 394 |
Other assets | 30,568 | 31,539 |
Total assets | 1,890,734 | 1,819,128 |
Current liabilities: | ||
Accounts payable | 58,747 | 64,691 |
Accrued liabilities | 116,737 | 112,236 |
Accrued taxes | 0 | 921 |
Total current liabilities | 175,484 | 177,848 |
Accrued liabilities | 107,208 | 106,736 |
Accrued and deferred income taxes | 63,641 | 81,352 |
Total liabilities | 346,333 | 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 | 87,740 | 86,245 |
Retained earnings | 1,478,030 | 1,386,438 |
Accumulated other comprehensive loss | (23,400) | (21,518) |
Total shareholders’ equity | 1,544,401 | 1,453,192 |
Total liabilities and shareholders’ equity | 1,890,734 | 1,819,128 |
Common Stock | ||
Shareholders’ equity: | ||
Common Stock | 1,549 | 1,545 |
Class B Common Stock | ||
Shareholders’ equity: | ||
Common Stock | $ 482 | $ 482 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Feb. 24, 2018 | Aug. 26, 2017 |
Receivables, reserves | $ 11,538 | $ 8,719 |
Accumulated depreciation | $ 730,702 | $ 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) | 15,492,219 | 15,453,308 |
Common stock, shares outstanding (in shares) | 15,492,219 | 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 | 6 Months Ended | |
Feb. 24, 2018 | Feb. 25, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 92,584 | $ 50,730 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 39,557 | 37,051 |
Amortization of intangible assets | 6,414 | 6,229 |
Amortization of deferred financing costs | 56 | 56 |
Gain on sale of assets | (135) | (517) |
Share-based compensation | 2,417 | 4,370 |
Accretion on environmental contingencies | 346 | 300 |
Accretion on asset retirement obligations | 470 | 423 |
Deferred income taxes | (20,613) | (1,346) |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables, less reserves | (6,931) | (12,887) |
Inventories | (5,296) | 9,233 |
Rental merchandise in service | (69) | 444 |
Prepaid expenses and other current assets and Other assets | (7,067) | 7,471 |
Accounts payable | (5,395) | 3,695 |
Accrued liabilities | 39 | 704 |
Prepaid and accrued income taxes | 22,535 | 8,793 |
Net cash provided by operating activities | 118,912 | 114,749 |
Cash flows from investing activities: | ||
Acquisition of businesses, net of cash acquired | (21,729) | (121,414) |
Capital expenditures | (56,653) | (43,011) |
Proceeds from sale of assets | 1,164 | 826 |
Other | (200) | 123 |
Net cash used in investing activities | (77,418) | (163,476) |
Cash flows from financing activities: | ||
Proceeds from exercise of share-based awards, including excess tax benefits | 430 | 2,283 |
Taxes withheld and paid related to net share settlement of equity awards | (2,094) | (1,546) |
Payment of cash dividends | (1,447) | (1,448) |
Net cash used in financing activities | (3,111) | (711) |
Effect of exchange rate changes | (444) | (822) |
Net increase (decrease) in cash, cash equivalents and short-term investments | 37,939 | (50,260) |
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 | $ 387,691 | $ 313,535 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Feb. 24, 2018 | |
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 (“U.S. 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 | 6 Months Ended |
Feb. 24, 2018 | |
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 February 24, 2018 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 $0.6 million and $2.2 million in the provision for income taxes during the thirteen and twenty-six weeks ended February 24, 2018 respectively. 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 and twenty-six weeks ended February 24, 2018 . The election to recognize forfeitures of share-based awards as they occur resulted in an increase of $0.1 million and $0.2 million in share-based compensation for the thirteen and twenty-six weeks ended February 24, 2018 respectively. 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. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from AOCI to retained earnings for tax effects resulting from the Tax Cuts and Jobs Act (the “Act”) and requires certain new disclosures. ASU 2018-02 will be effective for the Company for fiscal years beginning after December 15, 2018, with early adoption permitted. The update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company elected to early adopt ASU 2018-02 in the second quarter of fiscal 2018. The effect of the adoption of the standard was an increase in AOCI of $1.2 million with the offset to retained earnings as recorded in the Company’s consolidated balance sheet and statement of changes in stockholders’ equity for the twenty-six weeks ended February 24, 2018. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Feb. 24, 2018 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions During the twenty-six weeks ended February 24, 2018 , the Company completed three business acquisitions with an aggregate purchase price of approximately $25.8 million . The initial allocation of the purchase price is incomplete with respect to certain assets acquired. The Company is still in the process of measuring the fair value of intangible assets acquired and liabilities assumed. 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 | 6 Months Ended |
Feb. 24, 2018 | |
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 February 24, 2018 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 79,297 $ — $ — $ 79,297 Pension plan assets — 5,043 — 5,043 Total assets at fair value $ 79,297 $ 5,043 $ — $ 84,340 Liabilities: Foreign currency forward contracts $ — $ 54 $ — $ 54 Total liabilities at fair value $ — $ 54 $ — $ 54 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 $ — $ 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 liabilities as of February 24, 2018 and August 26, 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 | 6 Months Ended |
Feb. 24, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As of February 24, 2018 , the Company had forward contracts with a notional value of approximately 6.8 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 twenty-six weeks ended February 24, 2018 , 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 February 24, 2018 is expected to be reclassified to revenues prior to its maturity on February 22, 2019 . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Feb. 24, 2018 | |
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 February 24, 2018 and February 25, 2017 were $ 3.9 million and $ 3.7 million , respectively. Contributions charged to expense under the plan for the twenty-six weeks ended February 24, 2018 and February 25, 2017 were $8.0 million and $7.3 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 and two frozen non-contributory defined benefit pension plans. The amounts charged to expense related to these plans for the thirteen weeks ended February 24, 2018 and February 25, 2017 were $ 0.6 million and $0.9 million , respectively. The amounts charged to expense related to these plans for the twenty-six weeks ended February 24, 2018 and February 25, 2017 were $1.3 million and $1.7 million respectively. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Feb. 24, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The Company calculates net income per share by allocating 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 Twenty-six weeks ended February 24, 2018 February 25, 2017 February 24, 2018 February 25, 2017 Net income available to shareholders $ 58,378 $ 22,516 $ 92,584 $ 50,730 Allocation of net income for Basic: Common Stock $ 46,744 $ 17,836 $ 74,126 $ 40,178 Class B Common Stock 11,634 4,518 18,458 10,184 Unvested participating shares — 162 — 368 $ 58,378 $ 22,516 $ 92,584 $ 50,730 Weighted average number of shares for Basic: Common Stock 15,481 15,305 15,471 15,295 Class B Common Stock 4,816 4,846 4,816 4,846 Unvested participating shares — 139 — 140 20,297 20,290 20,287 20,281 Earnings per share for Basic: Common Stock $ 3.02 $ 1.17 $ 4.79 $ 2.63 Class B Common Stock $ 2.42 $ 0.93 $ 3.83 $ 2.10 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 and twenty-six weeks ended February 24, 2018 , 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 and twenty-six weeks ended February 24, 2018 (in thousands, except per share data): Thirteen weeks ended Twenty-six weeks ended Earnings Common EPS Earnings Common EPS As reported - Basic $ 46,744 15,481 $ 3.02 $ 74,126 15,471 $ 4.79 Add: effect of dilutive potential common shares Share-Based Awards — 166 — 147 Class B Common Stock 11,634 4,816 18,458 4,816 Add: Undistributed earnings allocated to unvested participating shares — — — — Less: Undistributed earnings reallocated to unvested participating shares — — — — As reported – Diluted $ 58,378 20,463 $ 2.85 $ 92,584 20,434 $ 4.53 Share-based awards that would result in the issuance of 4,368 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended February 24, 2018 because they were anti-dilutive. Share-based awards that would result in the issuance of 1,001 shares of Common Stock were excluded from the calculation of diluted earnings per share for the twenty-six weeks ended February 24, 2018 because they were anti-dilutive. For the thirteen and twenty-six weeks ended February 25, 2017 , 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 and twenty-six weeks ended February 25, 2017 (in thousands, except per share data): Thirteen weeks ended Twenty-six weeks ended Earnings Common EPS Earnings Common EPS As reported - Basic $ 17,836 15,305 $ 1.17 $ 40,178 15,295 $ 2.63 Add: effect of dilutive potential common shares Share-Based Awards — 112 — 109 Class B Common Stock 4,518 4,846 10,184 4,846 Add: Undistributed earnings allocated to unvested participating shares 158 — 357 — Less: Undistributed earnings reallocated to unvested participating shares (150 ) — (338 ) — As reported – Diluted $ 22,362 20,263 $ 1.10 $ 50,381 20,250 $ 2.49 Share-based awards that would result in the issuance of 11,821 shares of Common Stock were excluded from the calculation of diluted earnings per share for the thirteen weeks ended February 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 twenty-six weeks ended February 25, 2017 because they were anti-dilutive. |
Inventories
Inventories | 6 Months Ended |
Feb. 24, 2018 | |
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 February 24, 2018 and August 26, 2017 were as follows (in thousands): February 24, August 26, 2017 Raw materials $ 12,953 $ 18,468 Work in process 3,227 4,159 Finished goods 68,329 56,441 Total inventories $ 84,509 $ 79,068 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Feb. 24, 2018 | |
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 13,367 Other (12 ) Balance as of February 24, 2018 $ 389,465 Intangible assets, net in the Company’s accompanying Consolidated Balance Sheets are as follows (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount February 24, 2018 Customer contracts $ 215,233 $ 146,900 $ 68,333 Other intangible assets 34,877 30,773 4,104 $ 250,110 $ 177,673 $ 72,437 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 | 6 Months Ended |
Feb. 24, 2018 | |
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 twenty-six weeks ended February 24, 2018 was as follows (in thousands): February 24, 2018 Beginning balance as of August 26, 2017 $ 13,400 Accretion expense 470 Effect of exchange rate changes 164 Change in estimate (405 ) Ending balance as of February 24, 2018 $ 13,629 Asset retirement obligations are included in current and long-term accrued liabilities in the accompanying Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Feb. 24, 2018 | |
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. 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 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 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 February 24, 2018 , the risk-free interest rates utilized by the Company ranged from 2.9% to 3.2% . 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 twenty-six weeks ended February 24, 2018 were as follows (in thousands): February 24, 2018 Beginning balance as of August 26, 2017 $ 25,419 Costs incurred for which reserves had been provided (627 ) Insurance proceeds 56 Interest accretion 346 Change in discount rates (858 ) Balance as of February 24, 2018 $ 24,336 Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of February 24, 2018 , 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 $ 8,658 $ 1,880 $ 1,477 $ 1,305 $ 1,157 $ 12,304 $ 26,781 Estimated insurance proceeds (103 ) (173 ) (159 ) (173 ) (159 ) (993 ) (1,760 ) Net anticipated costs $ 8,555 $ 1,707 $ 1,318 $ 1,132 $ 998 $ 11,311 $ 25,021 Effect of inflation 7,623 Effect of discounting (8,308 ) Balance as of February 24, 2018 $ 24,336 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 February 24, 2018 , 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 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Feb. 24, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In accordance with ASC 740, Income Taxes (“ASC 740”), each interim period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period. The Company’s effective tax rate for the thirteen weeks ended February 24, 2018 was (34.0)% compared to a provision of 39.8% for the corresponding period in the prior year. The Company’s effective tax rate for the twenty-six weeks ended February 24, 2018 was 4.2% compared to 39.2% for the corresponding period in the prior year. The reduction in the effective tax rates in the thirteen and twenty-six weeks ended February 24, 2018 as compared to the corresponding periods in the prior year was due primarily to the impact of the Act enacted on December 22, 2017. As a result of this law, U.S. corporations will be subject to lower income tax rates, which also caused the Company to remeasure its U.S. net deferred tax liabilities at the lower rates. The remeasurement of the Company's net deferred tax assets and liabilities resulted in an estimated net benefit of $ 22.7 million recorded to the Company’s provision for income taxes. Also because of this law, the Company will be subject to a one-time transition tax for the deemed repatriation of its foreign earnings. The Company recorded an estimated charge of $ 2.5 million for this transition tax which partially offset the benefit mentioned above. For the thirteen and twenty-six weeks ended February 24, 2018 , the Company’s effective tax rates also were lower than the statutory tax rate due to the tax benefit from restricted stock units upon vesting. U.S. Tax Reform The Act reduces the U.S. federal corporate income tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. As of February 24, 2018 , the Company had not completed its accounting for the tax effects of enactment of the Act; however, as described below, the Company has made a reasonable estimate of the effects on its existing deferred tax balances and the one-time transition tax, and recognized a provisional net benefit of $ 20.2 million , which is included in income tax expense for the thirteen and twenty-six weeks ended February 24, 2018 . On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Act (“SAB 118”) directing SEC registrants to consider the impact of the U.S. legislation as “provisional” when they do not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete their accounting for the change in tax law. In accordance with SAB 118, the amounts recorded related to accounting for the Act represent the Company’s best estimate based on its interpretation of the U.S. legislation as the Company is still accumulating data to finalize the underlying calculations, or in certain cases, the U.S. Treasury is expected to issue further guidance on the application of certain provisions of the U.S. legislation. In addition, we also used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service, the SEC, the FASB and various other taxing jurisdictions. In particular, we anticipate that the U.S. state jurisdictions will continue to determine and announce their conformity or decoupling from the Act, either in its entirety or with respect to specific provisions. All of these potential legislative and interpretive actions could result in adjustments to our provisional estimates when the accounting for the income tax effects of the Act is completed. In the thirteen and twenty-six weeks ended February 24, 2018 , the Company revised its estimated annual effective rate to reflect a change in the federal statutory income tax rate from 35% to 21% . The rate change is administratively effective at the beginning of the Company’s fiscal year, using a blended rate for the annual period. The Company's blended federal statutory income tax rate for fiscal 2018 is 25.9% . The Company re-measured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is 25.9% for fiscal 2018 reversals and 21% for post-fiscal 2018 reversals. However, the Company is still analyzing certain aspects of the Act and refining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional net benefit amount recorded related to the re-measurement of the Company’s deferred tax balance was $ 22.7 million . The one-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) which were previously deferred from U.S. income taxes. The Company recorded a provisional amount for its one-time transition tax liability related to the deemed repatriation of the earnings of its foreign subsidiaries, resulting in an increase in income tax expense of $ 2.5 million in the thirteen and twenty-six weeks ended February 24, 2018 . The Company has not yet finalized its calculation of the total post-1986 foreign E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when the Company finalizes the calculation of its post-1986 foreign E&P previously deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax and any additional outside basis difference inherent in these entities as these amounts continue to be indefinitely reinvested in foreign operations. The Company continues to evaluate this assertion in its ongoing analysis of the effects of tax reform on the Company's strategic initiatives. The Company believes that determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable. Uncertain tax positions 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 and twenty-six weeks ended February 24, 2018 , 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. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Feb. 24, 2018 | |
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 February 24, 2018 , 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 February 24, 2018 , 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 February 24, 2018 , the Company was in compliance with all covenants under the Credit Agreement. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Feb. 24, 2018 | |
Stockholders' Equity Note [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in each component of accumulated other income (loss), net of tax, for the thirteen and twenty-six weeks ended February 24, 2018 and February 25, 2017 were as follows (in thousands): Thirteen weeks ended February 24, 2018 Foreign Currency Translation Pension- related (1) (2) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of November 25, 2017 $ (17,945 ) $ (5,477 ) $ (23 ) $ (23,445 ) Other comprehensive income (loss) before reclassification 1,250 — (23 ) 1,227 Amounts reclassified from accumulated other comprehensive income (loss) — (1,192 ) 10 (1,182 ) Net current period other comprehensive income (loss) 1,250 (1,192 ) (13 ) 45 Balance as of February 24, 2018 $ (16,695 ) $ (6,669 ) $ (36 ) $ (23,400 ) Twenty-six weeks ended February 24, 2018 Foreign Currency Translation Pension- related (1) (2) 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 (763 ) — 59 (704 ) Amounts reclassified from accumulated other comprehensive (loss) income — (1,192 ) 14 (1,178 ) Net current period other comprehensive (loss) income (763 ) (1,192 ) 73 (1,882 ) Balance as of February 24, 2018 $ (16,695 ) $ (6,669 ) $ (36 ) $ (23,400 ) Thirteen weeks ended February 25, 2017 Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of November 26, 2016 $ (25,943 ) $ (8,251 ) $ 364 $ (33,830 ) Other comprehensive income (loss) before reclassification 3,332 — (202 ) 3,130 Amounts reclassified from accumulated other comprehensive (loss) income — — (27 ) (27 ) Net current period other comprehensive income (loss) 3,332 — (229 ) 3,103 Balance as of February 25, 2017 $ (22,611 ) $ (8,251 ) $ 135 $ (30,727 ) Twenty-six weeks ended February 25, 2017 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 (1,797 ) — 122 (1,675 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (103 ) (103 ) Net current period other comprehensive (loss) income (1,797 ) — 19 (1,778 ) Balance as of February 25, 2017 $ (22,611 ) $ (8,251 ) $ 135 $ (30,727 ) (1) Amounts are shown net of tax. (2) Current period activity represents the impact of the adoption of ASU 2018-02. See Note 2 for further details. Amounts reclassified from accumulated other comprehensive income (loss), net of tax, for the thirteen and twenty-six weeks ended February 24, 2018 and February 25, 2017 were as follows (in thousands): Thirteen weeks ended Twenty-six weeks ended February 24, 2018 February 25, 2017 February 24, 2018 February 25, 2017 Pension benefit liabilities, net: Tax effect reclass (a) $ (1,192 ) $ — $ (1,192 ) $ — Total, net of tax (1,192 ) — (1,192 ) — Derivative financial instruments, net: Forward contracts (b) 10 (27 ) 14 (103 ) Total, net of tax 10 (27 ) 14 (103 ) Total amounts reclassified, net of tax $ (1,182 ) $ (27 ) $ (1,178 ) $ (103 ) (a) Current period activity represents the impact of the adoption of ASU 2018-02. See Note 2 for further details. (b) Amounts included in revenues in the accompanying Consolidated Statements of Income. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Feb. 24, 2018 | |
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: U.S. Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (“MFG”), Corporate, Specialty Garments Rental and Cleaning (“Specialty Garments”) and First Aid. 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 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 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, 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 U.S. and Canadian Rental and Cleaning reporting segment. 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 as well as 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): Thirteen weeks ended U.S. and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total February 24, 2018 Revenues $ 368,386 $ 59,769 $ (59,738 ) $ 10,538 $ 378,955 $ 27,009 $ 13,300 $ 419,264 Operating income (loss) $ 48,516 $ 21,994 $ (2,797 ) $ (29,629 ) $ 38,084 $ 2,800 $ 1,068 $ 41,952 Interest (income) expense, net $ (1,094 ) $ — $ — $ (336 ) $ (1,430 ) $ — $ — $ (1,430 ) Income (loss) before taxes $ 49,602 $ 21,974 $ (2,797 ) $ (29,280 ) $ 39,499 $ 3,001 $ 1,068 $ 43,568 February 25, 2017 Revenues $ 350,059 $ 46,224 $ (46,118 ) $ 8,221 $ 358,386 $ 21,787 $ 11,254 $ 391,427 Operating income (loss) $ 42,731 $ 16,652 $ 1,007 $ (27,331 ) $ 33,059 $ 2,095 $ 992 $ 36,146 Interest (income) expense, net $ (925 ) $ — $ — $ (195 ) $ (1,120 ) $ — $ — $ (1,120 ) Income (loss) before taxes $ 43,691 $ 16,630 $ 1,007 $ (27,093 ) $ 34,235 $ 2,147 $ 992 $ 37,374 Twenty-six weeks ended February 24, 2018 Revenues $ 733,904 $ 123,714 $ (123,657 ) $ 18,790 $ 752,751 $ 55,436 $ 26,855 $ 835,042 Operating income (loss) $ 103,314 $ 45,981 $ (7,534 ) $ (57,319 ) $ 84,442 $ 7,277 $ 2,144 $ 93,863 Interest (income) expense, net $ (2,043 ) $ — $ — $ (663 ) $ (2,706 ) $ — $ — $ (2,706 ) Income (loss) before taxes $ 105,366 $ 45,884 $ (7,534 ) $ (56,613 ) $ 87,103 $ 7,354 $ 2,144 $ 96,601 February 25, 2017 Revenues $ 694,540 $ 95,086 $ (94,922 ) $ 15,525 $ 710,229 $ 44,143 $ 23,163 $ 777,535 Operating income (loss) $ 95,558 $ 34,859 $ 68 $ (53,753 ) $ 76,732 $ 3,246 $ 1,925 $ 81,903 Interest (income) expense, net $ (1,759 ) $ — $ — $ (162 ) $ (1,921 ) $ — $ — $ (1,921 ) Income (loss) before taxes $ 97,399 $ 34,852 $ 68 $ (53,673 ) $ 78,646 $ 2,867 $ 1,925 $ 83,438 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Feb. 24, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On March 27, 2018, UniFirst repurchased 1.105 million shares of Class B Common Stock and 0.073 million shares of Common Stock for a combined $146.0 million in a private transaction with the Croatti family at a per share price of $124.00 . This opportunity to repurchase shares from the Croatti family was evaluated by an independent special committee of the Board of Directors (the “Special Committee”). The sale of shares by the Croatti family was executed to provide liquidity as well as for estate and family financial planning following the passing of former UniFirst Chief Executive Officer, Ronald D. Croatti. The Special Committee determined that a repurchase of Croatti family Class B Common Stock at a discount to market was in the best interests of the Company as it is accretive to earnings per share and addresses uncertainties that may have been created if the Croatti family had pursued other liquidity options. The Special Committee undertook its evaluation with the assistance of Stifel Financial Corp. (“Stifel”) and received an opinion from Stifel to the effect that, as of March 27, 2018, the $124.00 per share in cash to be paid was fair to the Company, from a financial point of view. The entire Board of Directors other than Cynthia Croatti, who is affiliated with the selling shareholders and therefore abstained, approved the transaction upon the recommendation of the Special Committee. On March 28, 2018, the Company announced that it will be raising its quarterly dividend to $0.1125 per share for Common Stock and to $0.09 per share for Class B Common Stock, up from $0.0375 and $0.03 per share, respectively. The amount and timing of any dividend payment is subject to the approval of the Board of Directors each quarter. |
Recent Accounting Pronounceme23
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Feb. 24, 2018 | |
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 February 24, 2018 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 $0.6 million and $2.2 million in the provision for income taxes during the thirteen and twenty-six weeks ended February 24, 2018 respectively. 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 and twenty-six weeks ended February 24, 2018 . The election to recognize forfeitures of share-based awards as they occur resulted in an increase of $0.1 million and $0.2 million in share-based compensation for the thirteen and twenty-six weeks ended February 24, 2018 respectively. 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. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU allows a reclassification from AOCI to retained earnings for tax effects resulting from the Tax Cuts and Jobs Act (the “Act”) and requires certain new disclosures. ASU 2018-02 will be effective for the Company for fiscal years beginning after December 15, 2018, with early adoption permitted. The update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company elected to early adopt ASU 2018-02 in the second quarter of fiscal 2018. The effect of the adoption of the standard was an increase in AOCI of $1.2 million with the offset to retained earnings as recorded in the Company’s consolidated balance sheet and statement of changes in stockholders’ equity for the twenty-six weeks ended February 24, 2018. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Feb. 24, 2018 | |
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 February 24, 2018 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents $ 79,297 $ — $ — $ 79,297 Pension plan assets — 5,043 — 5,043 Total assets at fair value $ 79,297 $ 5,043 $ — $ 84,340 Liabilities: Foreign currency forward contracts $ — $ 54 $ — $ 54 Total liabilities at fair value $ — $ 54 $ — $ 54 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 $ — $ 177 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Feb. 24, 2018 | |
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 Twenty-six weeks ended February 24, 2018 February 25, 2017 February 24, 2018 February 25, 2017 Net income available to shareholders $ 58,378 $ 22,516 $ 92,584 $ 50,730 Allocation of net income for Basic: Common Stock $ 46,744 $ 17,836 $ 74,126 $ 40,178 Class B Common Stock 11,634 4,518 18,458 10,184 Unvested participating shares — 162 — 368 $ 58,378 $ 22,516 $ 92,584 $ 50,730 Weighted average number of shares for Basic: Common Stock 15,481 15,305 15,471 15,295 Class B Common Stock 4,816 4,846 4,816 4,846 Unvested participating shares — 139 — 140 20,297 20,290 20,287 20,281 Earnings per share for Basic: Common Stock $ 3.02 $ 1.17 $ 4.79 $ 2.63 Class B Common Stock $ 2.42 $ 0.93 $ 3.83 $ 2.10 |
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 and twenty-six weeks ended February 25, 2017 (in thousands, except per share data): Thirteen weeks ended Twenty-six weeks ended Earnings Common EPS Earnings Common EPS As reported - Basic $ 17,836 15,305 $ 1.17 $ 40,178 15,295 $ 2.63 Add: effect of dilutive potential common shares Share-Based Awards — 112 — 109 Class B Common Stock 4,518 4,846 10,184 4,846 Add: Undistributed earnings allocated to unvested participating shares 158 — 357 — Less: Undistributed earnings reallocated to unvested participating shares (150 ) — (338 ) — As reported – Diluted $ 22,362 20,263 $ 1.10 $ 50,381 20,250 $ 2.49 The following table sets forth the computation of diluted earnings per share of Common Stock for the thirteen and twenty-six weeks ended February 24, 2018 (in thousands, except per share data): Thirteen weeks ended Twenty-six weeks ended Earnings Common EPS Earnings Common EPS As reported - Basic $ 46,744 15,481 $ 3.02 $ 74,126 15,471 $ 4.79 Add: effect of dilutive potential common shares Share-Based Awards — 166 — 147 Class B Common Stock 11,634 4,816 18,458 4,816 Add: Undistributed earnings allocated to unvested participating shares — — — — Less: Undistributed earnings reallocated to unvested participating shares — — — — As reported – Diluted $ 58,378 20,463 $ 2.85 $ 92,584 20,434 $ 4.53 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Feb. 24, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | The components of inventory as of February 24, 2018 and August 26, 2017 were as follows (in thousands): February 24, August 26, 2017 Raw materials $ 12,953 $ 18,468 Work in process 3,227 4,159 Finished goods 68,329 56,441 Total inventories $ 84,509 $ 79,068 |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Feb. 24, 2018 | |
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 13,367 Other (12 ) Balance as of February 24, 2018 $ 389,465 |
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 February 24, 2018 Customer contracts $ 215,233 $ 146,900 $ 68,333 Other intangible assets 34,877 30,773 4,104 $ 250,110 $ 177,673 $ 72,437 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) | 6 Months Ended |
Feb. 24, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Reconciliation of Asset Retirement Liability | A reconciliation of the Company’s asset retirement liability for the twenty-six weeks ended February 24, 2018 was as follows (in thousands): February 24, 2018 Beginning balance as of August 26, 2017 $ 13,400 Accretion expense 470 Effect of exchange rate changes 164 Change in estimate (405 ) Ending balance as of February 24, 2018 $ 13,629 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Feb. 24, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes to Environmental Liabilities | The changes to the Company’s environmental liabilities for the twenty-six weeks ended February 24, 2018 were as follows (in thousands): February 24, 2018 Beginning balance as of August 26, 2017 $ 25,419 Costs incurred for which reserves had been provided (627 ) Insurance proceeds 56 Interest accretion 346 Change in discount rates (858 ) Balance as of February 24, 2018 $ 24,336 |
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 February 24, 2018 , 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 $ 8,658 $ 1,880 $ 1,477 $ 1,305 $ 1,157 $ 12,304 $ 26,781 Estimated insurance proceeds (103 ) (173 ) (159 ) (173 ) (159 ) (993 ) (1,760 ) Net anticipated costs $ 8,555 $ 1,707 $ 1,318 $ 1,132 $ 998 $ 11,311 $ 25,021 Effect of inflation 7,623 Effect of discounting (8,308 ) Balance as of February 24, 2018 $ 24,336 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Feb. 24, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Changes in Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | The changes in each component of accumulated other income (loss), net of tax, for the thirteen and twenty-six weeks ended February 24, 2018 and February 25, 2017 were as follows (in thousands): Thirteen weeks ended February 24, 2018 Foreign Currency Translation Pension- related (1) (2) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of November 25, 2017 $ (17,945 ) $ (5,477 ) $ (23 ) $ (23,445 ) Other comprehensive income (loss) before reclassification 1,250 — (23 ) 1,227 Amounts reclassified from accumulated other comprehensive income (loss) — (1,192 ) 10 (1,182 ) Net current period other comprehensive income (loss) 1,250 (1,192 ) (13 ) 45 Balance as of February 24, 2018 $ (16,695 ) $ (6,669 ) $ (36 ) $ (23,400 ) Twenty-six weeks ended February 24, 2018 Foreign Currency Translation Pension- related (1) (2) 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 (763 ) — 59 (704 ) Amounts reclassified from accumulated other comprehensive (loss) income — (1,192 ) 14 (1,178 ) Net current period other comprehensive (loss) income (763 ) (1,192 ) 73 (1,882 ) Balance as of February 24, 2018 $ (16,695 ) $ (6,669 ) $ (36 ) $ (23,400 ) Thirteen weeks ended February 25, 2017 Foreign Currency Translation Pension- related (1) Derivative Financial Instruments (1) Total Accumulated Other Comprehensive (Loss) Income Balance as of November 26, 2016 $ (25,943 ) $ (8,251 ) $ 364 $ (33,830 ) Other comprehensive income (loss) before reclassification 3,332 — (202 ) 3,130 Amounts reclassified from accumulated other comprehensive (loss) income — — (27 ) (27 ) Net current period other comprehensive income (loss) 3,332 — (229 ) 3,103 Balance as of February 25, 2017 $ (22,611 ) $ (8,251 ) $ 135 $ (30,727 ) Twenty-six weeks ended February 25, 2017 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 (1,797 ) — 122 (1,675 ) Amounts reclassified from accumulated other comprehensive (loss) income — — (103 ) (103 ) Net current period other comprehensive (loss) income (1,797 ) — 19 (1,778 ) Balance as of February 25, 2017 $ (22,611 ) $ (8,251 ) $ 135 $ (30,727 ) (1) Amounts are shown net of tax. (2) Current period activity represents the impact of the adoption of ASU 2018-02. See Note 2 for further details. |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income (Loss), Net of Tax | Amounts reclassified from accumulated other comprehensive income (loss), net of tax, for the thirteen and twenty-six weeks ended February 24, 2018 and February 25, 2017 were as follows (in thousands): Thirteen weeks ended Twenty-six weeks ended February 24, 2018 February 25, 2017 February 24, 2018 February 25, 2017 Pension benefit liabilities, net: Tax effect reclass (a) $ (1,192 ) $ — $ (1,192 ) $ — Total, net of tax (1,192 ) — (1,192 ) — Derivative financial instruments, net: Forward contracts (b) 10 (27 ) 14 (103 ) Total, net of tax 10 (27 ) 14 (103 ) Total amounts reclassified, net of tax $ (1,182 ) $ (27 ) $ (1,178 ) $ (103 ) (a) Current period activity represents the impact of the adoption of ASU 2018-02. See Note 2 for further details. (b) Amounts included in revenues in the accompanying Consolidated Statements of Income. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Feb. 24, 2018 | |
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): Thirteen weeks ended U.S. and Canadian Rental and Cleaning MFG Net Interco MFG Elim Corporate Subtotal Core Laundry Operations Specialty Garments First Aid Total February 24, 2018 Revenues $ 368,386 $ 59,769 $ (59,738 ) $ 10,538 $ 378,955 $ 27,009 $ 13,300 $ 419,264 Operating income (loss) $ 48,516 $ 21,994 $ (2,797 ) $ (29,629 ) $ 38,084 $ 2,800 $ 1,068 $ 41,952 Interest (income) expense, net $ (1,094 ) $ — $ — $ (336 ) $ (1,430 ) $ — $ — $ (1,430 ) Income (loss) before taxes $ 49,602 $ 21,974 $ (2,797 ) $ (29,280 ) $ 39,499 $ 3,001 $ 1,068 $ 43,568 February 25, 2017 Revenues $ 350,059 $ 46,224 $ (46,118 ) $ 8,221 $ 358,386 $ 21,787 $ 11,254 $ 391,427 Operating income (loss) $ 42,731 $ 16,652 $ 1,007 $ (27,331 ) $ 33,059 $ 2,095 $ 992 $ 36,146 Interest (income) expense, net $ (925 ) $ — $ — $ (195 ) $ (1,120 ) $ — $ — $ (1,120 ) Income (loss) before taxes $ 43,691 $ 16,630 $ 1,007 $ (27,093 ) $ 34,235 $ 2,147 $ 992 $ 37,374 Twenty-six weeks ended February 24, 2018 Revenues $ 733,904 $ 123,714 $ (123,657 ) $ 18,790 $ 752,751 $ 55,436 $ 26,855 $ 835,042 Operating income (loss) $ 103,314 $ 45,981 $ (7,534 ) $ (57,319 ) $ 84,442 $ 7,277 $ 2,144 $ 93,863 Interest (income) expense, net $ (2,043 ) $ — $ — $ (663 ) $ (2,706 ) $ — $ — $ (2,706 ) Income (loss) before taxes $ 105,366 $ 45,884 $ (7,534 ) $ (56,613 ) $ 87,103 $ 7,354 $ 2,144 $ 96,601 February 25, 2017 Revenues $ 694,540 $ 95,086 $ (94,922 ) $ 15,525 $ 710,229 $ 44,143 $ 23,163 $ 777,535 Operating income (loss) $ 95,558 $ 34,859 $ 68 $ (53,753 ) $ 76,732 $ 3,246 $ 1,925 $ 81,903 Interest (income) expense, net $ (1,759 ) $ — $ — $ (162 ) $ (1,921 ) $ — $ — $ (1,921 ) Income (loss) before taxes $ 97,399 $ 34,852 $ 68 $ (53,673 ) $ 78,646 $ 2,867 $ 1,925 $ 83,438 |
Recent Accounting Pronounceme32
Recent Accounting Pronouncements - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Feb. 24, 2018USD ($) | Feb. 24, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Discrete tax benefits related to adoption of new policy | $ 0.6 | $ 2.2 |
Accounting Standards Update 2016-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Stock based compensation, increase | 0.1 | 0.2 |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (1.2) | |
Retained Earnings | Accounting Standards Update 2016-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative-effect adjustment, increase (decrease) | (0.7) | (0.7) |
AOCI | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | 1.2 | |
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 | $ 0.7 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) $ in Millions | 6 Months Ended |
Feb. 24, 2018USD ($)business | |
Business Combinations [Abstract] | |
Number of business acquisitions completed | business | 3 |
Business acquisitions aggregate purchase price | $ | $ 25.8 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Feb. 24, 2018 | Aug. 26, 2017 |
Assets: | ||
Cash equivalents | $ 79,297 | $ 81,253 |
Pension plan assets | 5,043 | 5,097 |
Total assets at fair value | 84,340 | 86,350 |
Liabilities: | ||
Foreign currency forward contracts | 54 | 177 |
Total liabilities at fair value | 54 | 177 |
Level 1 | ||
Assets: | ||
Cash equivalents | 79,297 | 81,253 |
Pension plan assets | 0 | 0 |
Total assets at fair value | 79,297 | 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 | 5,043 | 5,097 |
Total assets at fair value | 5,043 | 5,097 |
Liabilities: | ||
Foreign currency forward contracts | 54 | 177 |
Total liabilities at fair value | 54 | 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 He35
Derivative Instruments and Hedging Activities - Narrative (Details) $ in Millions | Feb. 24, 2018CAD ($) |
Forward Contracts | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional value (CAD) | $ 6.8 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 24, 2018USD ($)retirement_plan | Feb. 25, 2017USD ($) | Feb. 24, 2018USD ($)retirement_plan | Feb. 25, 2017USD ($) | |
Postemployment Benefits [Abstract] | ||||
Contributions charged to expense under the plan | $ 3.9 | $ 3.7 | $ 8 | $ 7.3 |
Number of frozen non-contributory defined benefit pension plans | retirement_plan | 2 | 2 | ||
Amounts charged to expense related to the plans | $ 0.6 | $ 0.9 | $ 1.3 | $ 1.7 |
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 | 6 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income available to shareholders | $ 58,378 | $ 22,516 | $ 92,584 | $ 50,730 |
Allocation of net income for Basic: | ||||
Common Stock | $ 58,378 | $ 22,516 | $ 92,584 | $ 50,730 |
Weighted average number of shares for Basic: | ||||
Common Stock (in shares) | 20,297 | 20,290 | 20,287 | 20,281 |
Common Stock | ||||
Allocation of net income for Basic: | ||||
Common Stock | $ 46,744 | $ 17,836 | $ 74,126 | $ 40,178 |
Weighted average number of shares for Basic: | ||||
Common Stock (in shares) | 15,481 | 15,305 | 15,471 | 15,295 |
Earnings per share for Basic: | ||||
Common Stock (in dollars per share) | $ 3.02 | $ 1.17 | $ 4.79 | $ 2.63 |
Class B Common Stock | ||||
Allocation of net income for Basic: | ||||
Common Stock | $ 11,634 | $ 4,518 | $ 18,458 | $ 10,184 |
Weighted average number of shares for Basic: | ||||
Common Stock (in shares) | 4,816 | 4,846 | 4,816 | 4,846 |
Earnings per share for Basic: | ||||
Common Stock (in dollars per share) | $ 2.42 | $ 0.93 | $ 3.83 | $ 2.10 |
Unvested participating shares | ||||
Allocation of net income for Basic: | ||||
Common Stock | $ 0 | $ 162 | $ 0 | $ 368 |
Weighted average number of shares for Basic: | ||||
Common Stock (in shares) | 0 | 139 | 0 | 140 |
Net Income Per Share - Schedu38
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 | 6 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
As reported - Basic | $ 58,378 | $ 22,516 | $ 92,584 | $ 50,730 |
As reported - Basic (in shares) | 20,297 | 20,290 | 20,287 | 20,281 |
Add: Undistributed earnings allocated to unvested participating shares | $ 0 | $ 158 | $ 0 | $ 357 |
Less: Undistributed earnings reallocated to unvested participating shares | 0 | (150) | 0 | (338) |
Diluted EPS – Common Stock | $ 58,378 | $ 22,362 | $ 92,584 | $ 50,381 |
Diluted EPS – Common Stock (in shares) | 20,463 | 20,263 | 20,434 | 20,250 |
Diluted EPS – Common Stock (in dollars per share) | $ 2.85 | $ 1.10 | $ 4.53 | $ 2.49 |
Common Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
As reported - Basic | $ 46,744 | $ 17,836 | $ 74,126 | $ 40,178 |
As reported - Basic (in shares) | 15,481 | 15,305 | 15,471 | 15,295 |
As reported - Basic (in dollars per share) | $ 3.02 | $ 1.17 | $ 4.79 | $ 2.63 |
Add: effect of dilutive potential common shares | $ 0 | $ 0 | $ 0 | $ 0 |
Add: effect of dilutive potential common shares (in shares) | 166 | 112 | 147 | 109 |
Class B Common Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
As reported - Basic | $ 11,634 | $ 4,518 | $ 18,458 | $ 10,184 |
As reported - Basic (in shares) | 4,816 | 4,846 | 4,816 | 4,846 |
As reported - Basic (in dollars per share) | $ 2.42 | $ 0.93 | $ 3.83 | $ 2.10 |
Add: effect of dilutive potential common shares | $ 11,634 | $ 4,518 | $ 18,458 | $ 10,184 |
Add: effect of dilutive potential common shares (in shares) | 4,816 | 4,846 | 4,816 | 4,846 |
Net Income Per Share - Narrativ
Net Income Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares) | 4,368 | 11,821 | 1,001 | 0 |
Inventories - Components of Inv
Inventories - Components of Inventory (Details) - USD ($) $ in Thousands | Feb. 24, 2018 | Aug. 26, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 12,953 | $ 18,468 |
Work in process | 3,227 | 4,159 |
Finished goods | 68,329 | 56,441 |
Total inventories | $ 84,509 | $ 79,068 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Feb. 24, 2018USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 376,110 |
Goodwill recorded during the period | 13,367 |
Other | (12) |
Ending balance | $ 389,465 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | Feb. 24, 2018 | Aug. 26, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 250,110 | $ 242,960 |
Accumulated Amortization | 177,673 | 171,216 |
Net Carrying Amount | 72,437 | 71,744 |
Customer contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 215,233 | 208,711 |
Accumulated Amortization | 146,900 | 141,226 |
Net Carrying Amount | 68,333 | 67,485 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34,877 | 34,249 |
Accumulated Amortization | 30,773 | 29,990 |
Net Carrying Amount | $ 4,104 | $ 4,259 |
Asset Retirement Obligations -
Asset Retirement Obligations - Narrative (Details) | 6 Months Ended |
Feb. 24, 2018 | |
Minimum | |
Asset Retirement Obligations [Line Items] | |
Remaining lives | 1 year |
Maximum | |
Asset Retirement Obligations [Line Items] | |
Remaining lives | 26 years |
Asset Retirement Obligations 44
Asset Retirement Obligations - Reconciliation of Asset Retirement Liability (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 24, 2018 | Feb. 25, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Beginning balance | $ 13,400 | |
Accretion expense | 470 | $ 423 |
Effect of exchange rate changes | 164 | |
Change in estimate | (405) | |
Ending balance | $ 13,629 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 6 Months Ended |
Feb. 24, 2018USD ($)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 | 2.90% |
Maximum | |
Gain Contingencies [Line Items] | |
Risk-free interest rates utilized | 3.20% |
Williamstown, Vermont | |
Gain Contingencies [Line Items] | |
Number of sites related to former operations | site | 3 |
Commitments and Contingencies46
Commitments and Contingencies - Changes to Environmental Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 24, 2018 | Feb. 25, 2017 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||
Beginning balance | $ 25,419 | |
Costs incurred for which reserves had been provided | (627) | |
Insurance proceeds | 56 | |
Interest accretion | 346 | $ 300 |
Change in discount rates | (858) | |
Ending balance | $ 24,336 |
Commitments and Contingencies47
Commitments and Contingencies - Anticipated Payments and Insurance Proceeds of Identified Environmental Remediation Liabilities (Details) - USD ($) $ in Thousands | Feb. 24, 2018 | Aug. 26, 2017 |
Estimated costs – current dollars | ||
2,018 | $ 8,658 | |
2,019 | 1,880 | |
2,020 | 1,477 | |
2,021 | 1,305 | |
2,022 | 1,157 | |
Thereafter | 12,304 | |
Total | 26,781 | |
Estimated insurance proceeds | ||
2,018 | (103) | |
2,019 | (173) | |
2,020 | (159) | |
2,021 | (173) | |
2,022 | (159) | |
Thereafter | (993) | |
Total | (1,760) | |
Net anticipated costs | ||
2,018 | 8,555 | |
2,019 | 1,707 | |
2,020 | 1,318 | |
2,021 | 1,132 | |
2,022 | 998 | |
Thereafter | 11,311 | |
Total | 25,021 | |
Effect of inflation | 7,623 | |
Effect of discounting | (8,308) | |
Balance at end of period | $ 24,336 | $ 25,419 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | Aug. 25, 2018 | |
Income Tax [Line Items] | |||||
Effective income tax rate | (34.00%) | 39.80% | 4.20% | 39.20% | |
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Benefit | $ 22.7 | $ 22.7 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | 2.5 | 2.5 | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Provisional Income Tax Benefit | $ (20.2) | $ (20.2) | |||
Scenario, Forecast | |||||
Income Tax [Line Items] | |||||
Blended statutory income tax rate | 25.90% |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - Credit Agreement - USD ($) | 6 Months Ended | |
Feb. 24, 2018 | 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 Comprehensi50
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,453,192 | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (1,182) | $ (27) | (1,178) | $ (103) |
Other comprehensive income (loss) | 45 | 3,103 | (1,882) | (1,778) |
Ending balance | 1,544,401 | 1,544,401 | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (17,945) | (25,943) | (15,932) | (20,814) |
Other comprehensive income (loss) before reclassification | 1,250 | 3,332 | (763) | (1,797) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 1,250 | 3,332 | (763) | (1,797) |
Ending balance | (16,695) | (22,611) | (16,695) | (22,611) |
Pension-related | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (5,477) | (8,251) | (5,477) | (8,251) |
Other comprehensive income (loss) before reclassification | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | (1,192) | 0 | (1,192) | 0 |
Other comprehensive income (loss) | (1,192) | 0 | (1,192) | 0 |
Ending balance | (6,669) | (8,251) | (6,669) | (8,251) |
Derivative Financial Instruments | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (23) | 364 | (109) | 116 |
Other comprehensive income (loss) before reclassification | (23) | (202) | 59 | 122 |
Amounts reclassified from accumulated other comprehensive income (loss) | 10 | (27) | 14 | (103) |
Other comprehensive income (loss) | (13) | (229) | 73 | 19 |
Ending balance | (36) | 135 | (36) | 135 |
Total Accumulated Other Comprehensive (Loss) Income | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (23,445) | (33,830) | (21,518) | (28,949) |
Other comprehensive income (loss) before reclassification | 1,227 | 3,130 | (704) | (1,675) |
Amounts reclassified from accumulated other comprehensive income (loss) | (1,182) | (27) | (1,178) | (103) |
Other comprehensive income (loss) | 45 | 3,103 | (1,882) | (1,778) |
Ending balance | $ (23,400) | $ (30,727) | $ (23,400) | $ (30,727) |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax effect of reclass from AOCI | $ 14,810 | $ (14,858) | $ (4,017) | $ (32,708) |
Revenues | (419,264) | (391,427) | (835,042) | (777,535) |
Net Income (Loss) Attributable to Parent | (58,378) | (22,516) | (92,584) | (50,730) |
Total amounts reclassified, net of tax | (1,182) | (27) | (1,178) | (103) |
Pension Benefit Liabilities, Net | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax effect of reclass from AOCI | (1,192) | 0 | (1,192) | 0 |
Total amounts reclassified, net of tax | (1,192) | 0 | (1,192) | 0 |
Derivative Financial Instruments, Net | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net Income (Loss) Attributable to Parent | 10 | (27) | 14 | (103) |
Total amounts reclassified, net of tax | 10 | (27) | 14 | (103) |
Derivative Financial Instruments, Net | Forward Contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Revenues | $ 10 | $ (27) | $ 14 | $ (103) |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 6 Months Ended |
Feb. 24, 2018segment | |
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 | 6 Months Ended | ||
Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 419,264 | $ 391,427 | $ 835,042 | $ 777,535 |
Operating income (loss) | 41,952 | 36,146 | 93,863 | 81,903 |
Interest (income) expense, net | (1,430) | (1,120) | (2,706) | (1,921) |
Income (loss) before taxes | 43,568 | 37,374 | 96,601 | 83,438 |
U.S. and Canadian Rental and Cleaning | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 368,386 | 350,059 | 733,904 | 694,540 |
Operating income (loss) | 48,516 | 42,731 | 103,314 | 95,558 |
Interest (income) expense, net | (1,094) | (925) | (2,043) | (1,759) |
Income (loss) before taxes | 49,602 | 43,691 | 105,366 | 97,399 |
MFG | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 59,769 | 46,224 | 123,714 | 95,086 |
Operating income (loss) | 21,994 | 16,652 | 45,981 | 34,859 |
Interest (income) expense, net | 0 | 0 | 0 | 0 |
Income (loss) before taxes | 21,974 | 16,630 | 45,884 | 34,852 |
MFG | Net Interco MFG Elim | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (59,738) | (46,118) | (123,657) | (94,922) |
Operating income (loss) | (2,797) | 1,007 | (7,534) | 68 |
Interest (income) expense, net | 0 | 0 | 0 | 0 |
Income (loss) before taxes | (2,797) | 1,007 | (7,534) | 68 |
Corporate | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,538 | 8,221 | 18,790 | 15,525 |
Operating income (loss) | (29,629) | (27,331) | (57,319) | (53,753) |
Interest (income) expense, net | (336) | (195) | (663) | (162) |
Income (loss) before taxes | (29,280) | (27,093) | (56,613) | (53,673) |
Subtotal Core Laundry Operations | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 378,955 | 358,386 | 752,751 | 710,229 |
Operating income (loss) | 38,084 | 33,059 | 84,442 | 76,732 |
Interest (income) expense, net | (1,430) | (1,120) | (2,706) | (1,921) |
Income (loss) before taxes | 39,499 | 34,235 | 87,103 | 78,646 |
Specialty Garments | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 27,009 | 21,787 | 55,436 | 44,143 |
Operating income (loss) | 2,800 | 2,095 | 7,277 | 3,246 |
Interest (income) expense, net | 0 | 0 | 0 | 0 |
Income (loss) before taxes | 3,001 | 2,147 | 7,354 | 2,867 |
First Aid | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 13,300 | 11,254 | 26,855 | 23,163 |
Operating income (loss) | 1,068 | 992 | 2,144 | 1,925 |
Interest (income) expense, net | 0 | 0 | 0 | 0 |
Income (loss) before taxes | $ 1,068 | $ 992 | $ 2,144 | $ 1,925 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | Mar. 28, 2018 | Mar. 27, 2018 | Feb. 24, 2018 | Feb. 25, 2017 | Feb. 24, 2018 | Feb. 25, 2017 |
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Repurchase of common stock, value | $ 146 | |||||
Shares repurchased, average price per share (in dollars per share) | $ 124 | |||||
Class B Common Stock | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly dividend amount (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.06 | ||
Class B Common Stock | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Shares repurchased (in shares) | 1,105 | |||||
Quarterly dividend amount (in dollars per share) | $ 0.09 | |||||
Common Stock | ||||||
Subsequent Event [Line Items] | ||||||
Quarterly dividend amount (in dollars per share) | $ 0.0375 | $ 0.0375 | $ 0.075 | $ 0.075 | ||
Common Stock | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Shares repurchased (in shares) | 73 | |||||
Quarterly dividend amount (in dollars per share) | $ 0.1125 |