0001564590-20-015536 | 10-Q | XBRL Viewer

Common stock (in dollars per share)

$ 34,680

$ 47,606

$ 82,922

$ 85,926

Income per share – Diluted:

$ 1.82

$ 2.48

$ 4.34

$ 4.46

Income allocated to – Basic:

$ 34,680

$ 47,606

$ 82,922

$ 85,926

Income allocated to – Diluted:

Weighted average shares outstanding – Basic:

$ 34,680

$ 47,606

$ 82,922

$ 85,926

Weighted average shares outstanding – Diluted:

18,936

19,138

18,943

19,140

Common stock (in dollars per share)

19,105

19,232

19,114

19,258

Common Stock

Income per share – Basic:

$ 1.90

$ 2.59

$ 4.55

$ 4.67

Income allocated to – Basic:

Weighted average shares outstanding – Basic:

$ 29,129

$ 39,923

$ 69,654

$ 72,061

Common stock (in dollars per share)

15,293

15,428

15,300

15,430

Class B Common Stock

Income per share – Basic:

$ 1.52

$ 2.07

$ 3.64

$ 3.74

Income allocated to – Basic:

Weighted average shares outstanding – Basic:

$ 5,551

$ 7,683

$ 13,268

$ 13,865

Balance at beginning of period at Aug. 25, 2018

3,643

3,710

3,643

3,710

[1]	Exclusive of depreciation on the Company’s property, plant and equipment and amortization on its intangible assets.

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 23, 2019	Feb. 29, 2020	Feb. 23, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 34,680	$ 47,606	$ 82,922	$ 85,926
Other comprehensive income (loss):
Foreign currency translation adjustments	(769)	1,418	220	(864)
Pension benefit liabilities	350		350
Change in fair value of derivatives, net of income taxes	52	(39)	77	93
Derivative financial instruments reclassified to earnings	(30)	(32)	(60)	(76)
Other comprehensive income (loss)	(397)	1,347	587	(847)
Comprehensive income	$ 34,283	$ 48,953	$ 83,509	$ 85,079

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Current assets:
Cash, cash equivalents and short-term investments	$ 395,323	$ 385,341
Receivables, less reserves of $13,368 and $9,935	209,878	203,457
Inventories	94,875	100,916
Rental merchandise in service	179,291	184,318
Prepaid taxes	8,933	4,060
Prepaid expenses and other current assets	35,522	35,699
Total current assets	923,822	913,791
Property, plant and equipment, net	582,753	574,509
Goodwill	424,711	401,178
Customer contracts, net	63,217	56,588
Other intangible assets, net	25,138	16,132
Deferred income taxes	475	448
Operating lease right-of-use assets, net	46,426
Other assets	86,320	84,674
Total assets	2,152,862	2,047,320
Current liabilities:
Accounts payable	71,172	77,918
Accrued liabilities	117,968	111,721
Accrued taxes		205
Operating lease liabilities, current	12,255
Total current liabilities	201,395	189,844
Accrued liabilities	118,114	117,074
Accrued and deferred income taxes	99,439	99,172
Operating lease liabilities	32,476
Total liabilities	451,424	406,090
Commitments and contingencies (Note 12)
Shareholders’ equity:
Preferred Stock, $1.00 par value; 2,000,000 shares authorized; no shares issued and outstanding	0	0
Capital surplus	84,577	84,946
Retained earnings	1,648,069	1,588,075
Accumulated other comprehensive loss	(33,101)	(33,688)
Total shareholders’ equity	1,701,438	1,641,230
Total liabilities and shareholders’ equity	2,152,862	2,047,320
Common Stock
Shareholders’ equity:
Common Stock	1,529	1,533
Class B Common Stock
Shareholders’ equity:
Common Stock	$ 364	$ 364

Consolidated Balance Sheets - Parenthetical - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Receivables, reserves	$ 13,368	$ 9,935
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
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)	15,293,172	15,332,759
Common stock, shares outstanding (in shares)	15,293,172	15,332,759
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	3,643,009	3,643,009
Common stock, shares outstanding (in shares)	3,643,009	3,643,009

Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands

Total

Common Shares

Class B Common Stock

Common Stock

Common Shares

Common Stock

Class B Common Stock

Capital Surplus

Retained Earnings

Common Shares

Retained Earnings

Class B Common Stock

Accumulated Other Comprehensive Loss

$ 1,464,967

$ 1,543

$ 371

$ 82,973

$ 1,405,239

$ (25,159)

Balance at beginning of period (in shares) at Aug. 25, 2018

15,431,000

3,710,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

38,320

(2,282)

$ (1,736)

$ (334)

$ (1,736)

$ (334)

^[1]

1,042

Balance at end of period at Nov. 24, 2018

^[2]

2,000

1,539,498

1,543

371

84,015

1,480,922

(27,353)

Balance at end of period (in shares) at Nov. 24, 2018

15,433,000

3,710,000

Balance at beginning of period at Aug. 25, 2018

1,464,967

1,543

371

82,973

1,405,239

(25,159)

Balance at beginning of period (in shares) at Aug. 25, 2018

15,431,000

3,710,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

85,926

Balance at end of period at Feb. 23, 2019

(864)

1,580,790

1,540

371

84,454

1,520,431

(26,006)

Balance at end of period (in shares) at Feb. 23, 2019

15,400,000

3,710,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative effect of change in accounting principle, net

39,433

Balance at beginning of period at Nov. 24, 2018

1,539,498

1,543

371

84,015

1,480,922

(27,353)

Balance at beginning of period (in shares) at Nov. 24, 2018

15,433,000

3,710,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

47,606

(71)

1,418

$ (1,732)

$ (334)

(1,732)

(334)

Share-based awards exercised, net

^[1]

659

^[2]

Repurchase of Common Stock

^[2]

12,000

(6,280)

(4)

(245)

(6,031)

Repurchase of common stock (in shares)

(45,000)

Balance at end of period at Feb. 23, 2019

1,580,790

1,540

371

84,454

1,520,431

(26,006)

Balance at end of period (in shares) at Feb. 23, 2019

15,400,000

3,710,000

Balance at beginning of period at Aug. 31, 2019

1,641,230

1,533

364

84,946

1,588,075

(33,688)

Balance at beginning of period (in shares) at Aug. 31, 2019

15,333,000

3,643,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

48,242

(5)

989

Shares repurchased (in shares)

$ (3,825)

$ (729)

(3,825)

(729)

Shares repurchased

(9,973)

(5)

(274)

(9,694)

(51,000)

Share-based awards exercised, net

^[1]

1,575

^[2]

(1,496)

(1,498)

Balance at end of period at Nov. 30, 2019

^[2]

16,000

1,676,008

1,530

364

84,749

1,622,069

(32,704)

Balance at end of period (in shares) at Nov. 30, 2019

15,298,000

3,643,000

Balance at beginning of period at Aug. 31, 2019

1,641,230

1,533

364

84,946

1,588,075

(33,688)

Balance at beginning of period (in shares) at Aug. 31, 2019

15,333,000

3,643,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

82,922

Pension benefit liabilities

220

$ 350

Shares repurchased (in shares)

(71,100)

Balance at end of period at Feb. 29, 2020

$ 1,701,438

1,529

364

84,577

1,648,069

(33,101)

Balance at end of period (in shares) at Feb. 29, 2020

15,293,000

3,643,000

Balance at beginning of period at Nov. 30, 2019

1,676,008

1,530

364

84,749

1,622,069

(32,704)

Balance at beginning of period (in shares) at Nov. 30, 2019

15,298,000

3,643,000

Increase (Decrease) in Stockholders' Equity [Roll Forward]

34,680

Pension benefit liabilities

(769)

350

Shares repurchased (in shares)

$ (3,835)

$ (729)

$ (3,835)

$ (729)

Shares repurchased

$ (4,230)

(2)

(112)

(4,116)

(20,500)

(21,000)

Share-based awards exercised, net

^[1]

$ 1,651

1,651

^[2]

(1,710)

(1,711)

Balance at end of period at Feb. 29, 2020

^[2]

16,000

$ 1,701,438

$ 1,529

$ 364

$ 84,577

$ 1,648,069

$ (33,101)

Balance at end of period (in shares) at Feb. 29, 2020

15,293,000

3,643,000

[1]	These amounts are shown net of any shares withheld by the Company to satisfy certain tax withholdings obligations in connection with the vesting of certain shares of restricted stock or restricted stock units.
[2]	These amounts are shown net of the effect of income taxes.

Consolidated Statements of Shareholders' Equity - Parenthetical - $ / shares			3 Months Ended
	Oct. 23, 2019	Oct. 22, 2019	Feb. 29, 2020	Nov. 30, 2019	Feb. 23, 2019	Nov. 24, 2018
Common Shares
Dividends declared (in dollars per share)	$ 0.25	$ 0.1125	$ 0.25	$ 0.25	$ 0.1125	$ 0.1125
Class B Common Stock
Dividends declared (in dollars per share)	$ 0.20	$ 0.09	$ 0.20	$ 0.20	$ 0.0900	$ 0.0900

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Feb. 29, 2020	Feb. 23, 2019
Cash flows from operating activities:
Net income	$ 82,922	$ 85,926
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	51,430	50,162
Amortization of deferred financing costs	56	56
Forgiveness of a liability		(7,346)
Share-based compensation	3,227	2,796
Accretion on environmental contingencies	269	377
Accretion on asset retirement obligations	463	441
Deferred income taxes	727	364
Other	16	(811)
Changes in assets and liabilities, net of acquisitions:
Receivables, less reserves	(4,867)	(2,502)
Inventories	6,125	(5,589)
Rental merchandise in service	6,839	(4,862)
Prepaid expenses and other current assets and Other assets	2,170	(3,616)
Accounts payable	(5,815)	(5,268)
Accrued liabilities	(1,752)	(7,711)
Prepaid and accrued income taxes	(4,941)	26,243
Net cash provided by operating activities	136,869	128,660
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(41,021)	(67)
Capital expenditures, including capitalization of software costs	(62,271)	(52,152)
Proceeds from sale of assets	236	178
Other		15
Net cash used in investing activities	(103,056)	(52,026)
Cash flows from financing activities:
Proceeds from exercise of share-based awards	75	27
Taxes withheld and paid related to net share settlement of equity awards	(3,281)	(1,095)
Repurchase of Common Stock	(14,203)	(6,280)
Payment of cash dividends	(6,609)	(4,140)
Net cash used in financing activities	(24,018)	(11,488)
Effect of exchange rate changes	187	(336)
Net (decrease) increase in cash, cash equivalents and short-term investments	9,982	64,810
Cash, cash equivalents and short-term investments at beginning of period	385,341	270,512
Cash, cash equivalents and short-term investments at end of period	395,323	335,322
Supplemental disclosure of cash flow information:
Non-cash capital expenditures	$ 9,004	$ 10,141

Basis of Presentation

6 Months Ended

Feb. 29, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

1. Basis of Presentation

These Consolidated Financial Statements of UniFirst Corporation (the “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 31, 2019. 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 Pronouncements

6 Months Ended

Feb. 29, 2020

Accounting Policies [Abstract]

Recent Accounting Pronouncements

2. Recent Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (the “FASB”) issued updated guidance which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new guidance requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The Company adopted this standard on September 1, 2019 using the modified retrospective adoption method. The standard provides a number of optional practical expedients in transition and the Company has elected certain of these practical expedients upon adoption of this standard. Specifically, the Company elected the package of practical expedients permitted under the standard, which allows a lessee to carry forward its population of existing leases, the classification of each lease, as well as the treatment of initial direct lease costs as of the period of adoption. The Company also elected the practical expedient related to lease and non-lease components, as an accounting policy election which allows a lessee to not separate non-lease from lease components and instead account for consideration paid in a contract as a single lease component. In addition, the Company elected the short-term lease recognition exemption for all leases with a term of 12 months or less, which means it will not recognize right-of-use assets or lease liabilities for these leases. The adoption of this standard resulted in the Company recognizing right-of-use assets, net of $48.7 million and corresponding lease liabilities of $46.2 million and reductions of prepaid expenses and other current assets of $1.2 million and $1.3 million, respectively. The adoption of this standard did not have a material impact on the Company's consolidated statement of income or consolidated statement of cash flows.

In June 2016, the FASB issued updated guidance that introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments including trade receivables. The estimate of expected credit losses will require entities to incorporate historical information, current information and reasonable and supportable forecasts. This guidance also expands the disclosure requirements to enable users of financial statements to understand the entity’s assumptions, models and methods for estimating expected credit losses. This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2019 with early adoption permitted. Accordingly, the guidance will be effective for the Company on August 30, 2020. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

In August 2018, the FASB issued updated guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance will be effective for annual reporting periods, and any interim periods within those annual periods, ending after December 15, 2020 and will be required to be applied on a retrospective basis with early adoption permitted. Accordingly, the standard will be effective for the Company on August 29, 2021. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

In August 2018, the FASB issued guidance that addresses customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract and also adds certain disclosure requirements related to implementation costs incurred for internal-use software and cloud computing arrangements. This guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2019 with early adoption permitted. The amendments in this update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Accordingly, the guidance will be effective for the Company on August 30, 2020. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

In December 2019, the FASB issued updated guidance to simplify accounting for income taxes by removing certain exceptions and improving the consistent application of and simplifying U.S. GAAP in other areas of this topic. This guidance is effective for annual reporting periods, and any interim periods within those annual periods, that begin after December 15, 2020 with early adoption permitted. Accordingly, the guidance will be effective for the Company on August 29, 2021. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

In March 2020, the FASB issued optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact that this guidance will have on its financial statements and related disclosures.

Revenue Recognition

6 Months Ended

Feb. 29, 2020

Revenue From Contract With Customer [Abstract]

Revenue Recognition

3. Revenue Recognition

The following table presents the Company’s revenues for the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019, respectively, disaggregated by service type:

	Thirteen Weeks Ended										Twenty-Six Weeks Ended
	February 29, 2020					February 23, 2019					February 29, 2020					February 23, 2019
(In thousands, except percentages)	Revenues		% of Revenues			Revenues		% of Revenues			Revenues		% of Revenues			Revenues		% of Revenues
Core Laundry Operations	$	412,192		88.7	%	$	394,408		90.2	%	$	828,490		89.1	%	$	784,885		89.6	%
Specialty Garments		35,980		7.7	%		29,745		6.8	%		69,382		7.5	%		64,193		7.3	%
First Aid		16,428		3.5	%		13,332		3.0	%		32,126		3.5	%		26,957		3.0	%
Total Revenues	$	464,600		100.0	%	$	437,485		100.0	%	$	929,998		100.0	%	$	876,035		100.0	%

See Note 16 “Segment Reporting” for additional details of segment definitions.

Revenue Recognition Policy

During the thirteen weeks ended February 29, 2020 and February 23, 2019, approximately 90.2% and 91.0%, respectively, of the Company’s revenues were derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid performed by the Company’s employees at the customer’s location of business. During the twenty-six weeks ended February 29, 2020 and February 23, 2019, approximately 90.9% and 91.0%, respectively, of the Company’s revenues were derived from fees for route servicing of Core Laundry Operations, Specialty Garments, and First Aid performed by the Company’s employees at the customer’s location of business. Revenues from the Company’s route servicing customer contracts represent a single performance obligation. The Company recognizes these revenues over time as services are performed based on the nature of services provided and contractual rates (input method). Certain of the Company’s customer contracts, primarily within the Company’s Core Laundry Operations, include pricing terms and conditions that include components of variable consideration. The variable consideration is typically in the form of consideration due to customer based performance metrics specified within the contract. Specifically, some contracts contain discounts or rebates that the customer can earn through the achievement of specified volume levels. Each component of variable consideration is earned based on the Company’s actual performance during the measurement period specified within the contract. To determine the transaction price, the Company estimates the variable consideration using the most likely amount method, based on the specific contract provisions and known performance results during the relevant measurement period. When determining if variable consideration should be constrained, the Company considers whether factors outside its control could result in a significant reversal of revenue. In making these assessments, the Company considers the likelihood and magnitude of a potential reversal. The Company’s performance period generally corresponds with the monthly invoice period. No significant constraints on the Company’s revenue recognition were applied during the thirteen and twenty-six weeks ended February 29, 2020 or February 23, 2019. The Company reassesses these estimates during each reporting period. The Company maintains a liability for these discounts and rebates within accrued liabilities on the consolidated balance sheets. Variable consideration also includes consideration paid to a customer at the beginning of a contract. The Company capitalizes this consideration and amortizes it over the life of the contract as a reduction to revenue in accordance with the updated accounting guidance for revenue recognition. These assets are included in other assets on the consolidated balance sheets.

Costs to Obtain a Contract

The Company defers commission expenses paid to its employee-partners when the commissions are deemed to be incremental for obtaining the route servicing customer contract. The deferred commissions are amortized on a straight-line basis over the expected period of benefit. The Company reviews the deferred commission balances for impairment on an ongoing basis. Deferred commissions are classified as current or noncurrent based on the timing of when the Company expects to recognize the expense. The current portion is included in prepaid expenses and other current assets and the non-current portion is included in other assets on the Company’s consolidated balance sheets. As of February 29, 2020, the current and non-current assets related to deferred commissions totaled $13.1 million and $54.3 million, respectively. As of August 31, 2019, the current and non-current assets related to deferred commissions totaled $12.4 million and $50.3 million, respectively. During the thirteen weeks ended February 29, 2020 and February 23, 2019, the Company recorded $3.4 million and $2.9 million, respectively, of amortization expense related to deferred commissions. During the twenty-six weeks ended February 29, 2020 and February 23, 2019, the Company recorded $6.7 million and $5.7 million, respectively, of amortization expense related to deferred commissions. This expense is classified in selling and administrative expenses on the consolidated statements of income.

Acquisitions

6 Months Ended

Feb. 29, 2020

Business Combinations [Abstract]

Acquisitions

4. Acquisitions

During the twenty-six weeks ended February 29, 2020, the Company completed 8 business acquisitions with an aggregate purchase price of approximately $41.3 million, which includes $38.8 million related to the acquisition of a Missouri-based industrial laundry business (the “Missouri Acquisition”). The Company has allocated $4.4 million, $23.5 million and $10.9 million to tangible assets, goodwill and intangibles, respectively, in the preliminary purchase accounting for the Missouri Acquisition. The initial allocations of the purchase prices are incomplete with respect to certain assets acquired. 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

6 Months Ended

Feb. 29, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

5. 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 29, 2020
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	195,996	$	—	$	—	$	195,996
Pension plan assets		—		4,228		—		4,228
Foreign currency forward contracts		—		280		—		280
Total assets at fair value	$	195,996	$	4,508	$	—	$	200,504

	As of August 31, 2019
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	214,038	$	—	$	—	$	214,038
Pension plan assets		—		4,603		—		4,603
Foreign currency forward contracts		—		254		—		254
Total assets at fair value	$	214,038	$	4,857	$	—	$	218,895

The Company’s cash equivalents listed above represent money market securities and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company does not adjust the quoted market price for such financial instruments.

The Company’s pension plan assets listed above represent guaranteed deposit accounts that are maintained and operated by Prudential Retirement Insurance and Annuity Company (“PRIAC”). All assets are merged with the general assets of PRIAC and are invested predominantly in privately placed securities and mortgages. At the beginning of each calendar year, PRIAC notifies the Company of the annual rates of interest which will be applied to the amounts held in the guaranteed deposit account during the next calendar year. In determining the interest rate to be applied, PRIAC considers the investment performance of the underlying assets of the prior year; however, regardless of the investment performance the Company is contractually guaranteed a minimum rate of return. As such, the Company’s pension plan assets are included within Level 2 of the fair value hierarchy.

The Company’s foreign currency forward contracts represent contracts the Company has entered into to exchange Canadian dollars for U.S. dollars at fixed exchange rates in order to manage its exposure related to certain forecasted Canadian dollar denominated sales of one of its subsidiaries. These contracts are included in prepaid expenses and other current assets and other long-term assets as of February 29, 2020 and August 31, 2019. 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 Hedging Activities

6 Months Ended

Feb. 29, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

6. Derivative Instruments and Hedging Activities

As of February 29, 2020, the Company had forward contracts with a notional value of approximately $7.1 million CAD outstanding and recorded the fair value of the contracts of $0.1 million in other long-term assets and $0.2 million in prepaid expenses and other current assets with a corresponding decrease in accumulated other comprehensive loss of $0.2 million, which was recorded net of tax. During the thirteen and twenty-six weeks ended February 29, 2020, the Company reclassified a nominal value and $0.1 million, respectively from accumulated other comprehensive income to revenue, related to the derivative financial instruments. The gain on these forward contracts that resulted in a decrease to accumulated other comprehensive loss as of February 29, 2020 is expected to be reclassified to revenues prior to its maturity on February 25, 2022.

Employee Benefit Plans

6 Months Ended

Feb. 29, 2020

Postemployment Benefits [Abstract]

Employee Benefit Plans

7. Employee Benefit Plans

Defined Contribution Retirement Savings Plan

The Company has a defined contribution retirement savings plan with a 401(k) feature for all eligible U.S. and Canadian employees not under collective bargaining agreements. The Company matches a portion of the employee’s contribution and may make an additional contribution at its discretion. Contributions charged to expense under the plan for the thirteen weeks ended February 29, 2020 and February 23, 2019 were $5.0 million and $4.3 million, respectively. Contributions charged to expense under the plan for the twenty-six weeks ended February 29, 2020 and February 23, 2019 were $10.5 million and $8.8 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 Company recorded a benefit of $0.3 million and an expense of $0.5 million related to these plans for the thirteen weeks ended February 29, 2020 and February 23, 2019, respectively. The amounts charged to expense related to these plans for the twenty-six weeks ended February 29, 2020 and February 23, 2019 were $0.4 million and $1.1 million, respectively.

Income Per Share

6 Months Ended

Feb. 29, 2020

Earnings Per Share [Abstract]

Income Per Share

8. Income Per Share

The Company calculates income per share by allocating income to its unvested participating securities as part of its income per share calculations. The following table sets forth the computation of basic income per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data):

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	February 29, 2020		February 23, 2019		February 29, 2020		February 23, 2019
Net income available to shareholders	$	34,680	$	47,606	$	82,922	$	85,926
Allocation of net income for Basic:
Common Stock	$	29,129	$	39,923	$	69,654	$	72,061
Class B Common Stock		5,551		7,683		13,268		13,865
	$	34,680	$	47,606	$	82,922	$	85,926
Weighted average number of shares for Basic:
Common Stock		15,293		15,428		15,300		15,430
Class B Common Stock		3,643		3,710		3,643		3,710
		18,936		19,138		18,943		19,140
Income per share for Basic:
Common Stock	$	1.90	$	2.59	$	4.55	$	4.67
Class B Common Stock	$	1.52	$	2.07	$	3.64	$	3.74

The Company is required to calculate diluted income per share for Common Stock using the more dilutive of the following two methods:

•

The treasury stock method; or

•

The two-class method assuming a participating security is not exercised or converted.

For the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019, the Company’s diluted income per share 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 tables set forth the computation of diluted income per share of Common Stock for the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019 (in thousands, except per share data):

	Thirteen weeks ended February 29, 2020						Twenty-six weeks ended February 29, 2020
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	29,129		15,293	$	1.90	$	69,654		15,300	$	4.55
Add: effect of dilutive potential common shares
Share-Based Awards		—		169				—		171
Class B Common Stock		5,551		3,643				13,268		3,643
As reported – Diluted	$	34,680		19,105	$	1.82	$	82,922		19,114	$	4.34

	Thirteen Weeks Ended February 23, 2019						Twenty-Six Weeks Ended February 23, 2019
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	39,923		15,428	$	2.59	$	72,061		15,430	$	4.67
Add: effect of dilutive potential common shares
Share-Based Awards		—		94				—		118
Class B Common Stock		7,683		3,710				13,865		3,710
As reported – Diluted	$	47,606		19,232	$	2.48	$	85,926		19,258	$	4.46

Share-based awards that would result in the issuance of 667 and 423 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 29, 2020 because they were anti-dilutive. Share-based awards that would result in the issuance of 195 and 754 shares, respectively, of Common Stock were excluded from the calculation of diluted income per share for the thirteen and twenty-six weeks ended February 23, 2019 because they were anti-dilutive.

Inventories

6 Months Ended

Feb. 29, 2020

Inventory Disclosure [Abstract]

Inventories

9. 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 29, 2020 and August 31, 2019 were as follows (in thousands):

	February 29, 2020		August 31, 2019
Raw materials	$	18,102	$	23,000
Work in process		2,599		2,864
Finished goods		74,174		75,052
Total inventories	$	94,875	$	100,916

Goodwill and Other Intangible Assets

6 Months Ended

Feb. 29, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

10. Goodwill and Other Intangible Assets

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 31, 2019	$	401,178
Goodwill recorded during the period		23,544
Other		(11	)
Balance as of February 29, 2020	$	424,711

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 29, 2020
Customer contracts	$	233,997	$	170,780	$	63,217
Software		59,956		36,940		23,016
Other intangible assets		35,664		33,542		2,122
	$	329,617	$	241,262	$	88,355
August 31, 2019
Customer contracts	$	221,306	$	164,718	$	56,588
Software		48,838		34,813		14,025
Other intangible assets		35,063		32,956		2,107
	$	305,207	$	232,487	$	72,720

Asset Retirement Obligations

6 Months Ended

Feb. 29, 2020

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

11. 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 1 to 24 years.

A reconciliation of the Company’s asset retirement liability for the twenty-six weeks ended February 29, 2020 was as follows (in thousands):

	February 29, 2020
Beginning balance as of August 31, 2019	$	12,727
Accretion expense		463
Effect of exchange rate changes		28
Balance as of February 29, 2020	$	13,218

Asset retirement obligations are included in current and long-term accrued liabilities in the accompanying Consolidated Balance Sheets.

Commitments and Contingencies

6 Months Ended

Feb. 29, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

12. 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, two sites related to former operations in Williamstown, Vermont, as well as sites located in Goldsboro, North Carolina and Wilmington, North Carolina.

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 the EPA’s comments. Additionally, the Company has implemented mitigation measures and continues to monitor environmental conditions at the Somerville, Massachusetts site. The Company has received and responded to a notice of audit findings from the Massachusetts Department of Environmental Protection concerning a regulatory submittal that the Company made in 2009 for a portion of the site. The Company has received demands from the local transit authority for reimbursement of certain costs associated with its construction of a new municipal transit station in the area of the Somerville site. This station is part of an ongoing extension of the transit system. The Company has reserved for costs in connection with this matter; however, in light of the uncertainties associated with this matter, these costs and the related reserve may change.

The Company routinely reviews and evaluates sites that may require remediation and monitoring and determines its estimated costs based on various estimates and assumptions. These estimates are developed using its internal sources or by third party environmental engineers or other service providers. Internally developed estimates are based on:

•

Management’s judgment and experience in remediating and monitoring the Company’s sites;

•

Information available from regulatory agencies as to costs of remediation and monitoring;

•

The number, financial resources and relative degree of responsibility of other potentially responsible parties (“PRPs”) who may be liable for remediation and monitoring of a specific site; and

•

The typical allocation of costs among PRPs.

There is usually a range of reasonable estimates of the costs associated with each site. In accordance with U.S. GAAP, the Company’s accruals reflect the amount within the range that it believes is the best estimate or the low end of a range of estimates if no point within the range is a better estimate. Where it believes that both the amount of a particular liability and the timing of the payments are reliably determinable, the Company adjusts the cost in current dollars using a rate of 3% for inflation until the time of expected payment and discounts the cost to present value using current risk-free interest rates. As of February 29, 2020, the risk-free interest rates utilized by the Company ranged from 1.1% to 1.7%.

For environmental liabilities that have been discounted, the Company includes interest accretion, based on the effective interest method, in selling and administrative expenses on the accompanying Consolidated Statements of Income. The changes to the Company’s environmental liabilities for the twenty-six weeks ended February 29, 2020 were as follows (in thousands):

	February 29, 2020
Beginning balance as of August 31, 2019	$	27,718
Revisions in estimates		1,200
Costs incurred for which reserves have been provided		(627	)
Insurance proceeds		62
Interest accretion		269
Changes in discount rates		781
Balance as of February 29, 2020	$	29,403

Anticipated payments and insurance proceeds of currently identified environmental remediation liabilities as of February 29, 2020, for the next five fiscal years and thereafter, as measured in current dollars, are reflected below.

(In thousands)	2020			2021			2022			2023			2024			Thereafter			Total
Estimated costs – current dollars	$	10,518		$	2,186		$	1,353		$	1,091		$	1,058		$	12,032		$	28,238
Estimated insurance proceeds		(97	)		(173	)		(159	)		(173	)		(159	)		(693	)		(1,454	)
Net anticipated costs	$	10,421		$	2,013		$	1,194		$	918		$	899		$	11,339		$	26,784
Effect of inflation																				7,522
Effect of discounting																				(4,903	)
Balance as of February 29, 2020																			$	29,403

Estimated insurance proceeds are primarily received from an annuity received as part of a legal settlement with an insurance company. Annual proceeds of approximately $0.3 million are deposited into an escrow account which funds remediation and monitoring costs for two sites related to former operations 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 29, 2020, the balance in this escrow account, which is held in a trust and is not recorded in the Company’s accompanying Consolidated Balance Sheet, was approximately $4.2 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 or, in certain cases, by the applicable state agency, and are subject to regulation by federal, state and local authorities. There can be no assurance that such regulation will not lead to material disruptions in the Company’s garment decontamination business.

During the year ended August 26, 2017 (“fiscal 2017"), the Company recorded a pre-tax non-cash impairment charge of $55.8 million once it was determined that it was not probable that the version of the Customer Relationship Management (“CRM”) system that was being developed would be completed and placed into service. On December 28, 2018, the Company entered into a settlement agreement with its lead contractor for the version of the CRM system with respect to which the Company recorded the impairment charge. As part of the settlement agreement, the Company recorded in the thirteen weeks ended February 23, 2019 a total gain of $21.1 million as a reduction of selling and administrative expenses, which includes the Company’s receipt of a one-time cash payment in the amount of $13.0 million as well as the forgiveness of amounts previously due the contractor. The Company also received hardware and related maintenance service with a fair value of $0.8 million as part of the settlement.

From time to time, the Company is also subject to legal proceedings and claims arising from the conduct of its business operations, including personal injury claims, customer contract matters, employment claims and environmental matters as described above.

While it is impossible for the Company to ascertain the ultimate legal and financial liability with respect to contingent liabilities, including lawsuits and environmental contingencies, the Company believes that the aggregate amount of such liabilities, if any, in excess of amounts covered by insurance have been properly accrued in accordance with U.S. GAAP. It is possible, however, that the future financial position and/or results of operations for any particular future period could be materially affected by changes in the Company’s assumptions or strategies related to these contingencies or changes out of the Company’s control.

Income Taxes

6 Months Ended

Feb. 29, 2020

Income Tax Disclosure [Abstract]

Income Taxes

13. 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.

Effective tax rate

The Company’s effective tax rate for the thirteen weeks ended February 29, 2020 was 24.2% as compared to 24.9% for the corresponding period in the prior year. The Company’s effective tax rate for the twenty-six weeks ended February 29, 2020 was 23.0% as compared to 25.5% for the corresponding period in the prior year. The decrease in the effective tax rate in the twenty-six weeks ended February 29, 2020 was primarily due to a $1.3 million benefit resulting from the release of certain tax reserves. In addition, there was a $0.7 million and $1.4 million discrete tax benefit related to stock option exercises during the thirteen and twenty-six weeks ended February 29, 2020, respectively.

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 weeks ended February 29, 2020, there was no change in unrecognized tax benefits to the Company. During the twenty-six weeks ended February 29, 2020, there was a decrease in unrecognized tax benefits of $1.3 million due to a release of tax reserves.

All U.S. and Canadian federal income tax statutes have lapsed for filings up to and including fiscal years 2015 and 2012, respectively. With a few exceptions, the Company is no longer subject to state and local income tax examinations for periods prior to fiscal 2015. 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

6 Months Ended

Feb. 29, 2020

Debt Disclosure [Abstract]

Long-Term Debt

14. Long-Term Debt

The Company has a $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 its election, the Eurodollar rate or a base rate, plus in each case a spread based on the Company’s consolidated funded debt ratio. Availability of credit requires compliance with certain financial and other covenants, including a maximum consolidated funded debt ratio and minimum consolidated interest coverage ratio as defined in the Credit Agreement. The Company tests its compliance with these financial covenants on a fiscal quarterly basis. As of February 29, 2020, 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 29, 2020, the Company had no outstanding borrowings and had outstanding letters of credit amounting to $70.8 million, leaving $179.2 million available for borrowing under the Credit Agreement.

As of February 29, 2020, the Company was in compliance with all covenants under the Credit Agreement.

Accumulated Other Comprehensive Loss

6 Months Ended

Feb. 29, 2020

Stockholders Equity Note [Abstract]

Accumulated Other Comprehensive Loss

15. Accumulated Other Comprehensive Loss

The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019 were as follows (in thousands):

	Thirteen Weeks Ended February 29, 2020
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Beginning balance as of November 30, 2019	$	(23,651	)	$	(9,239	)	$	186		$	(32,704	)
Other comprehensive income (loss) before reclassification		(769	)		—			52			(717	)
Amounts reclassified from accumulated other comprehensive loss		—			350			(30	)		320
Net current period other comprehensive (loss) income		(769	)		350			22			(397	)
Ending balance as of February 29, 2020	$	(24,420	)	$	(8,889	)	$	208		$	(33,101	)

	Twenty-six weeks ended February 29, 2020
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Balance as of August 31, 2019	$	(24,640	)	$	(9,239	)	$	191		$	(33,688	)
Other comprehensive (loss) income before reclassification		220			—			77			297
Amounts reclassified from accumulated other comprehensive loss		—			350			(60	)		290
Net current period other comprehensive (loss) income		220			350			17			587
Balance as of February 29, 2020	$	(24,420	)	$	(8,889	)	$	208		$	(33,101	)

	Thirteen Weeks Ended February 23, 2019
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Beginning balance as of November 24, 2018	$	(23,398	)	$	(4,135	)	$	180		$	(27,353	)
Other comprehensive (loss) income before reclassification		1,418			—			(39	)		1,379
Amounts reclassified from accumulated other comprehensive loss		—			—			(32	)		(32	)
Net current period other comprehensive (loss) income		1,418			—			(71	)		1,347
Ending balance as of February 23, 2019	$	(21,980	)	$	(4,135	)	$	109		$	(26,006	)

	Twenty-six weeks ended February 23, 2019
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Balance as of August 25, 2018	$	(21,116	)	$	(4,135	)	$	92		$	(25,159	)
Other comprehensive (loss) income before reclassification		(864	)		—			93			(771	)
Amounts reclassified from accumulated other comprehensive loss		—			—			(76	)		(76	)
Net current period other comprehensive (loss) income		(864	)		—			17			(847	)
Balance as of February 23, 2019	$	(21,980	)	$	(4,135	)	$	109		$	(26,006	)

(1)	Amounts are shown net of tax.

Amounts reclassified from accumulated other comprehensive loss, net of tax, for the twenty-six weeks ended February 29, 2020 and February 23, 2019 were as follows (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	February 29, 2020			February 23, 2019			February 29, 2020			February 23, 2019
Pension benefit liabilities (net):
Reclassification to income statement (a)	$	350		$	—		$	350		$	—
Total, net of tax	$	350			—		$	350			—

Derivative financial instruments, net:
Forward contracts (b)		(30	)		(32	)		(60	)		(76	)
Total, net of tax		(30	)		(32	)		(60	)		(76	)

Total amounts reclassified, net of tax	$	(30	)	$	(32	)	$	(60	)	$	(76	)

(a) Amounts included in selling and administrative expenses in the accompanying Consolidated Statements of Income.

(b)	Amounts included in revenues in the accompanying Consolidated Statements of Income.

Segment Reporting

6 Months Ended

Feb. 29, 2020

Segment Reporting [Abstract]

Segment Reporting

16. 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 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 primarily generated when goods are shipped from the Company’s manufacturing facilities, or its subcontract manufacturers, to other Company locations. These intercompany revenues are recorded at a transfer price which is typically in excess of the actual manufacturing cost. Manufactured products are carried in inventory until placed in service at which time they are amortized at this transfer price. On a consolidated basis, intercompany revenues and income are eliminated and the carrying value of inventories and rental merchandise in service is reduced to the manufacturing cost. Income before income taxes from MFG net of the intercompany MFG elimination offsets the merchandise amortization costs incurred by the U.S. and Canadian Rental and Cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from MFG at the transfer price which is above the Company’s manufacturing cost.

The Corporate operating segment consists of costs associated with the Company’s distribution center, sales and marketing, information systems, engineering, 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. In the table below, no assets or capital expenditures are presented for the Corporate operating segment because no assets are allocated to this operating segment in the information reviewed by the chief executive officer. However, depreciation and amortization expense related to certain assets are reflected in operating income and income before income taxes for the Corporate operating segment. The assets that give rise to this depreciation and amortization are included in the total assets of the U.S. and Canadian Rental and Cleaning reporting segment as this is how they are tracked and reviewed by the Company. The majority of expenses accounted for within the Corporate segment relate to costs of the U.S. and Canadian Rental and Cleaning segment, with the remainder of the costs relating to the Specialty Garment and First Aid segments.

The Specialty Garments operating segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear and cleanroom applications and provides cleanroom cleaning services at limited customer locations. The First Aid operating segment sells first aid cabinet services and other safety supplies 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 table (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 29, 2020
Revenues	$	403,161		$	53,661	$	(53,661	)	$	9,031		$	412,192		$	35,980	$	16,428	$	464,600
Operating income (loss)	$	59,008		$	16,714	$	3,093		$	(40,458	)	$	38,357		$	4,627	$	1,143	$	44,127
Interest income, net	$	(1,124	)	$	—	$	—		$	(1,051	)	$	(2,175	)	$	—	$	—	$	(2,175	)
Income (loss) before taxes	$	60,119		$	16,646	$	3,093		$	(39,811	)	$	40,047		$	4,573	$	1,143	$	45,763
February 23, 2019
Revenues	$	385,528		$	60,978	$	(60,978	)	$	8,880		$	394,408		$	29,745	$	13,332	$	437,485
Operating income (loss)	$	64,619		$	20,160	$	1,047		$	(26,713	)	$	59,113		$	2,235	$	1,098	$	62,446
Interest income, net	$	(1,058	)	$	—	$	—		$	(951	)	$	(2,009	)	$	—	$	—	$	(2,009	)
Income (loss) before taxes	$	65,667		$	19,876	$	1,046		$	(26,502	)	$	60,087		$	2,210	$	1,098	$	63,395

Twenty-six weeks ended
February 29, 2020
Revenues	$	810,964		$	118,671	$	(118,671	)	$	17,526		$	828,490		$	69,382	$	32,126	$	929,998
Operating income (loss)	$	135,295		$	39,260	$	567		$	(82,957	)	$	92,165		$	9,506	$	2,551	$	104,222
Interest income, net	$	(2,100	)	$	—	$	—		$	(2,436	)	$	(4,536	)	$	—	$	—	$	(4,536	)
Income (loss) before taxes	$	137,376		$	39,049	$	567		$	(81,309	)	$	95,683		$	9,457	$	2,551	$	107,691
February 23, 2019
Revenues	$	766,316		$	128,524	$	(128,524	)	$	18,569		$	784,885		$	64,193	$	26,957	$	876,035
Operating income (loss)	$	119,333		$	44,892	$	(2,700	)	$	(57,630	)	$	103,895		$	6,705	$	2,272	$	112,872
Interest income, net	$	(2,105	)	$	—	$	—		$	(1,609	)	$	(3,714	)	$	—	$	—	$	(3,714	)
Income (loss) before taxes	$	121,419		$	44,716	$	(2,701	)	$	(56,735	)	$	106,699		$	6,383	$	2,272	$	115,354

Shares Repurchased and Dividends

6 Months Ended

Feb. 29, 2020

Equity [Abstract]

Shares Repurchased and Dividends

17. Shares Repurchased and Dividends

On October 23, 2019, the Company announced that it will be raising its quarterly dividend to $0.25 per share for Common Stock and to $0.20 per share for Class B Common Stock, up from $0.1125 and $0.09 per share, respectively. The amount and timing of any dividend payment is subject to the approval of the Board of Directors each quarter.

On January 2, 2019, the Company’s Board of Directors approved a share repurchase program authorizing the Company to repurchase from time to time up to $100.0 million of its outstanding shares of Common Stock. Repurchases made under the program, if any, will be made in either the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will depend on a variety of factors, including economic and market conditions, the Company stock price, corporate liquidity requirements and priorities, applicable legal requirements and other factors. The share repurchase program will be funded using the Company’s available cash or capacity under its Credit Agreement and may be suspended or discontinued at any time. As of February 29, 2020, the Company had repurchased a total of 268,250 shares for an average price per share of $166.71 under the share repurchase program. During the thirteen and twenty-six weeks ended February 29, 2020, the Company repurchased 20,500 and 71,100 shares for an average price per share of $206.34 and $199.77, respectively.

Leases

6 Months Ended

Feb. 29, 2020

Leases [Abstract]

Leases

18. Leases

The Company has operating leases for certain operating facilities, vehicles and equipment, which provide the right to use the underlying asset and require lease payments over the term of the lease. Each new contract is evaluated to determine if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. All identified leases are recorded on the consolidated balance sheet with a corresponding operating lease right-of-use asset, net, representing the right to use the underlying asset for the lease term and the operating lease liabilities representing the obligation to make lease payments arising from the lease. Short-term operating leases, which have an initial term of twelve months or less, are not recorded on the consolidated balance sheet.

Operating lease right-of-use assets, net and operating lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The present value of lease payments is determined primarily using the incremental borrowing rate based on the information available at lease commencement date. Lease expense for operating leases is recorded on a straight-line basis over the lease term and variable lease costs are recorded as incurred. Both lease expense and variable lease costs are primarily recorded in cost of revenues on the Company's consolidated statements of income. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table presents the operating lease cost and information related to the operating lease right-of-use assets, net and operating lease liabilities for the twenty-six weeks ended February 29, 2020:

(In thousands, except lease term and discount rate)
Lease cost
Operating lease costs including short-term lease expense and variable lease costs, which were immaterial in the period	$	9,136

Operating cash flow impacts
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,510
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$	4,398
Weighted-average remaining lease term - operating leases	4.6
Weighted-average discount rate - operating leases		2.86	%

The contractual future minimum lease payments of the Company's operating lease liabilities by fiscal year are as follows as of February 29, 2020:

(In thousands, except per share data)
2020 (remaining six months)	$	6,625
2021		12,647
2022		9,399
2023		7,063
2024		4,804
Thereafter		7,010
Total payments		47,548
Less interest		(2,817	)
Total present value of lease payments	$	44,731

Recent Accounting Pronouncements (Policies)

6 Months Ended

Feb. 29, 2020

Accounting Policies [Abstract]

Recent Accounting Pronouncements

2. Recent Accounting Pronouncements

Revenue Recognition (Tables)

6 Months Ended

Feb. 29, 2020

Revenue From Contract With Customer [Abstract]

Schedule of Total Revenue Disaggregated by Service Type

The following table presents the Company’s revenues for the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019, respectively, disaggregated by service type:

	Thirteen Weeks Ended										Twenty-Six Weeks Ended
	February 29, 2020					February 23, 2019					February 29, 2020					February 23, 2019
(In thousands, except percentages)	Revenues		% of Revenues			Revenues		% of Revenues			Revenues		% of Revenues			Revenues		% of Revenues
Core Laundry Operations	$	412,192		88.7	%	$	394,408		90.2	%	$	828,490		89.1	%	$	784,885		89.6	%
Specialty Garments		35,980		7.7	%		29,745		6.8	%		69,382		7.5	%		64,193		7.3	%
First Aid		16,428		3.5	%		13,332		3.0	%		32,126		3.5	%		26,957		3.0	%
Total Revenues	$	464,600		100.0	%	$	437,485		100.0	%	$	929,998		100.0	%	$	876,035		100.0	%

Fair Value Measurements (Tables)

6 Months Ended

Feb. 29, 2020

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 29, 2020
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	195,996	$	—	$	—	$	195,996
Pension plan assets		—		4,228		—		4,228
Foreign currency forward contracts		—		280		—		280
Total assets at fair value	$	195,996	$	4,508	$	—	$	200,504

	As of August 31, 2019
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	214,038	$	—	$	—	$	214,038
Pension plan assets		—		4,603		—		4,603
Foreign currency forward contracts		—		254		—		254
Total assets at fair value	$	214,038	$	4,857	$	—	$	218,895

Income Per Share (Tables)

6 Months Ended

Feb. 29, 2020

Earnings Per Share [Abstract]

Schedule of Computation of Basic Income Per Share

The following table sets forth the computation of basic income per share using the two-class method for amounts attributable to the Company’s shares of Common Stock and Class B Common Stock (in thousands, except per share data):

	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	February 29, 2020		February 23, 2019		February 29, 2020		February 23, 2019
Net income available to shareholders	$	34,680	$	47,606	$	82,922	$	85,926
Allocation of net income for Basic:
Common Stock	$	29,129	$	39,923	$	69,654	$	72,061
Class B Common Stock		5,551		7,683		13,268		13,865
	$	34,680	$	47,606	$	82,922	$	85,926
Weighted average number of shares for Basic:
Common Stock		15,293		15,428		15,300		15,430
Class B Common Stock		3,643		3,710		3,643		3,710
		18,936		19,138		18,943		19,140
Income per share for Basic:
Common Stock	$	1.90	$	2.59	$	4.55	$	4.67
Class B Common Stock	$	1.52	$	2.07	$	3.64	$	3.74

Schedule of Computation of Diluted Income Per Share

The following tables set forth the computation of diluted income per share of Common Stock for the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019 (in thousands, except per share data):

	Thirteen weeks ended February 29, 2020						Twenty-six weeks ended February 29, 2020
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	29,129		15,293	$	1.90	$	69,654		15,300	$	4.55
Add: effect of dilutive potential common shares
Share-Based Awards		—		169				—		171
Class B Common Stock		5,551		3,643				13,268		3,643
As reported – Diluted	$	34,680		19,105	$	1.82	$	82,922		19,114	$	4.34

	Thirteen Weeks Ended February 23, 2019						Twenty-Six Weeks Ended February 23, 2019
	Earnings to Common Shareholders		Common Shares		Income Per Share		Earnings to Common Shareholders		Common Shares		Income Per Share
As reported - Basic	$	39,923		15,428	$	2.59	$	72,061		15,430	$	4.67
Add: effect of dilutive potential common shares
Share-Based Awards		—		94				—		118
Class B Common Stock		7,683		3,710				13,865		3,710
As reported – Diluted	$	47,606		19,232	$	2.48	$	85,926		19,258	$	4.46

Inventories (Tables)

6 Months Ended

Feb. 29, 2020

Inventory Disclosure [Abstract]

Schedule of Components of Inventory

The components of inventory as of February 29, 2020 and August 31, 2019 were as follows (in thousands):

	February 29, 2020		August 31, 2019
Raw materials	$	18,102	$	23,000
Work in process		2,599		2,864
Finished goods		74,174		75,052
Total inventories	$	94,875	$	100,916

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Feb. 29, 2020

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 31, 2019	$	401,178
Goodwill recorded during the period		23,544
Other		(11	)
Balance as of February 29, 2020	$	424,711

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 29, 2020
Customer contracts	$	233,997	$	170,780	$	63,217
Software		59,956		36,940		23,016
Other intangible assets		35,664		33,542		2,122
	$	329,617	$	241,262	$	88,355
August 31, 2019
Customer contracts	$	221,306	$	164,718	$	56,588
Software		48,838		34,813		14,025
Other intangible assets		35,063		32,956		2,107
	$	305,207	$	232,487	$	72,720

Asset Retirement Obligations (Tables)

6 Months Ended

Feb. 29, 2020

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 29, 2020 was as follows (in thousands):

	February 29, 2020
Beginning balance as of August 31, 2019	$	12,727
Accretion expense		463
Effect of exchange rate changes		28
Balance as of February 29, 2020	$	13,218

Commitments and Contingencies (Tables)

6 Months Ended

Feb. 29, 2020

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 29, 2020 were as follows (in thousands):

	February 29, 2020
Beginning balance as of August 31, 2019	$	27,718
Revisions in estimates		1,200
Costs incurred for which reserves have been provided		(627	)
Insurance proceeds		62
Interest accretion		269
Changes in discount rates		781
Balance as of February 29, 2020	$	29,403

Schedule of Anticipated Payments and Insurance Proceeds of Currently Identified Environmental Remediation Liabilities

(In thousands)	2020			2021			2022			2023			2024			Thereafter			Total
Estimated costs – current dollars	$	10,518		$	2,186		$	1,353		$	1,091		$	1,058		$	12,032		$	28,238
Estimated insurance proceeds		(97	)		(173	)		(159	)		(173	)		(159	)		(693	)		(1,454	)
Net anticipated costs	$	10,421		$	2,013		$	1,194		$	918		$	899		$	11,339		$	26,784
Effect of inflation																				7,522
Effect of discounting																				(4,903	)
Balance as of February 29, 2020																			$	29,403

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Feb. 29, 2020

Stockholders Equity Note [Abstract]

Schedule of Changes in Components of Accumulated Other Comprehensive Loss, Net of Tax

The changes in each component of accumulated other comprehensive loss, net of tax, for the thirteen and twenty-six weeks ended February 29, 2020 and February 23, 2019 were as follows (in thousands):

	Thirteen Weeks Ended February 29, 2020
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Beginning balance as of November 30, 2019	$	(23,651	)	$	(9,239	)	$	186		$	(32,704	)
Other comprehensive income (loss) before reclassification		(769	)		—			52			(717	)
Amounts reclassified from accumulated other comprehensive loss		—			350			(30	)		320
Net current period other comprehensive (loss) income		(769	)		350			22			(397	)
Ending balance as of February 29, 2020	$	(24,420	)	$	(8,889	)	$	208		$	(33,101	)

	Twenty-six weeks ended February 29, 2020
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Balance as of August 31, 2019	$	(24,640	)	$	(9,239	)	$	191		$	(33,688	)
Other comprehensive (loss) income before reclassification		220			—			77			297
Amounts reclassified from accumulated other comprehensive loss		—			350			(60	)		290
Net current period other comprehensive (loss) income		220			350			17			587
Balance as of February 29, 2020	$	(24,420	)	$	(8,889	)	$	208		$	(33,101	)

	Thirteen Weeks Ended February 23, 2019
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Beginning balance as of November 24, 2018	$	(23,398	)	$	(4,135	)	$	180		$	(27,353	)
Other comprehensive (loss) income before reclassification		1,418			—			(39	)		1,379
Amounts reclassified from accumulated other comprehensive loss		—			—			(32	)		(32	)
Net current period other comprehensive (loss) income		1,418			—			(71	)		1,347
Ending balance as of February 23, 2019	$	(21,980	)	$	(4,135	)	$	109		$	(26,006	)

	Twenty-six weeks ended February 23, 2019
	Foreign Currency Translation			Pension- related (1)			Derivative Financial Instruments (1)			Total Accumulated Other Comprehensive Loss
Balance as of August 25, 2018	$	(21,116	)	$	(4,135	)	$	92		$	(25,159	)
Other comprehensive (loss) income before reclassification		(864	)		—			93			(771	)
Amounts reclassified from accumulated other comprehensive loss		—			—			(76	)		(76	)
Net current period other comprehensive (loss) income		(864	)		—			17			(847	)
Balance as of February 23, 2019	$	(21,980	)	$	(4,135	)	$	109		$	(26,006	)

(1)	Amounts are shown net of tax.

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Loss, Net of Tax

Amounts reclassified from accumulated other comprehensive loss, net of tax, for the twenty-six weeks ended February 29, 2020 and February 23, 2019 were as follows (in thousands):

	Thirteen weeks ended						Twenty-six weeks ended
	February 29, 2020			February 23, 2019			February 29, 2020			February 23, 2019
Pension benefit liabilities (net):
Reclassification to income statement (a)	$	350		$	—		$	350		$	—
Total, net of tax	$	350			—		$	350			—

Derivative financial instruments, net:
Forward contracts (b)		(30	)		(32	)		(60	)		(76	)
Total, net of tax		(30	)		(32	)		(60	)		(76	)

Total amounts reclassified, net of tax	$	(30	)	$	(32	)	$	(60	)	$	(76	)

(a) Amounts included in selling and administrative expenses in the accompanying Consolidated Statements of Income.

(b)	Amounts included in revenues in the accompanying Consolidated Statements of Income.

Segment Reporting (Tables)

6 Months Ended

Feb. 29, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

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 29, 2020
Revenues	$	403,161		$	53,661	$	(53,661	)	$	9,031		$	412,192		$	35,980	$	16,428	$	464,600
Operating income (loss)	$	59,008		$	16,714	$	3,093		$	(40,458	)	$	38,357		$	4,627	$	1,143	$	44,127
Interest income, net	$	(1,124	)	$	—	$	—		$	(1,051	)	$	(2,175	)	$	—	$	—	$	(2,175	)
Income (loss) before taxes	$	60,119		$	16,646	$	3,093		$	(39,811	)	$	40,047		$	4,573	$	1,143	$	45,763
February 23, 2019
Revenues	$	385,528		$	60,978	$	(60,978	)	$	8,880		$	394,408		$	29,745	$	13,332	$	437,485
Operating income (loss)	$	64,619		$	20,160	$	1,047		$	(26,713	)	$	59,113		$	2,235	$	1,098	$	62,446
Interest income, net	$	(1,058	)	$	—	$	—		$	(951	)	$	(2,009	)	$	—	$	—	$	(2,009	)
Income (loss) before taxes	$	65,667		$	19,876	$	1,046		$	(26,502	)	$	60,087		$	2,210	$	1,098	$	63,395

Twenty-six weeks ended
February 29, 2020
Revenues	$	810,964		$	118,671	$	(118,671	)	$	17,526		$	828,490		$	69,382	$	32,126	$	929,998
Operating income (loss)	$	135,295		$	39,260	$	567		$	(82,957	)	$	92,165		$	9,506	$	2,551	$	104,222
Interest income, net	$	(2,100	)	$	—	$	—		$	(2,436	)	$	(4,536	)	$	—	$	—	$	(4,536	)
Income (loss) before taxes	$	137,376		$	39,049	$	567		$	(81,309	)	$	95,683		$	9,457	$	2,551	$	107,691
February 23, 2019
Revenues	$	766,316		$	128,524	$	(128,524	)	$	18,569		$	784,885		$	64,193	$	26,957	$	876,035
Operating income (loss)	$	119,333		$	44,892	$	(2,700	)	$	(57,630	)	$	103,895		$	6,705	$	2,272	$	112,872
Interest income, net	$	(2,105	)	$	—	$	—		$	(1,609	)	$	(3,714	)	$	—	$	—	$	(3,714	)
Income (loss) before taxes	$	121,419		$	44,716	$	(2,701	)	$	(56,735	)	$	106,699		$	6,383	$	2,272	$	115,354

Leases (Tables)

6 Months Ended

Feb. 29, 2020

Leases [Abstract]

Schedule of Operating Lease Cost and Information Related to Operating Lease Right-of-use Assets, Net and Operating Lease Liabilities

(In thousands, except lease term and discount rate)
Lease cost
Operating lease costs including short-term lease expense and variable lease costs, which were immaterial in the period	$	9,136

Operating cash flow impacts
Cash paid for amounts included in the measurement of operating lease liabilities	$	6,510
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$	4,398
Weighted-average remaining lease term - operating leases	4.6
Weighted-average discount rate - operating leases		2.86	%

Schedule of Contractual Future Minimum Lease Payments of Operating Lease Liabilities

The contractual future minimum lease payments of the Company's operating lease liabilities by fiscal year are as follows as of February 29, 2020:

(In thousands, except per share data)
2020 (remaining six months)	$	6,625
2021		12,647
2022		9,399
2023		7,063
2024		4,804
Thereafter		7,010
Total payments		47,548
Less interest		(2,817	)
Total present value of lease payments	$	44,731

Recent Accounting Pronouncements - Narrative (Details) - USD ($) $ in Thousands	Sep. 01, 2019	Feb. 29, 2020
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease, right-of-use asset		$ 46,426
Operating lease, liability		$ 44,731
Accounting Standards Update 2016-02
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating lease, right-of-use asset	$ 48,700
Operating lease, liability	46,200
Reductions of prepaid expenses	(1,200)
Reductions of other current assets	$ (1,300)

Revenue Recognition - Schedule of Total Revenue Disaggregated by Service Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 23, 2019	Feb. 29, 2020	Feb. 23, 2019
Disaggregation of Revenue [Line Items]
Total revenues	$ 464,600	$ 437,485	$ 929,998	$ 876,035
Revenue \| Revenues
Disaggregation of Revenue [Line Items]
Percentage of revenues	100.00%	100.00%	100.00%	100.00%
Core Laundry Operations
Disaggregation of Revenue [Line Items]
Total revenues	$ 412,192	$ 394,408	$ 828,490	$ 784,885
Core Laundry Operations \| Revenue \| Revenues
Disaggregation of Revenue [Line Items]
Percentage of revenues	88.70%	90.20%	89.10%	89.60%
Specialty Garments
Disaggregation of Revenue [Line Items]
Total revenues	$ 35,980	$ 29,745	$ 69,382	$ 64,193
Specialty Garments \| Revenue \| Revenues
Disaggregation of Revenue [Line Items]
Percentage of revenues	7.70%	6.80%	7.50%	7.30%
First Aid
Disaggregation of Revenue [Line Items]
Total revenues	$ 16,428	$ 13,332	$ 32,126	$ 26,957
First Aid \| Revenue \| Revenues
Disaggregation of Revenue [Line Items]
Percentage of revenues	3.50%	3.00%	3.50%	3.00%

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 23, 2019	Feb. 29, 2020	Feb. 23, 2019	Aug. 31, 2019
Revenue From Contract With Customer [Abstract]
Percentage of revenues derived from route servicing fees	90.20%	91.00%	90.90%	91.00%
Current assets related to deferred commissions	$ 13.1		$ 13.1		$ 12.4
Noncurrent assets related to deferred commissions	54.3		54.3		$ 50.3
Amortization expense related to deferred commissions	$ 3.4	$ 2.9	$ 6.7	$ 5.7

Acquisitions - Narrative (Details) $ in Millions	6 Months Ended
Acquisitions - Narrative (Details) $ in Millions	Feb. 29, 2020 USD ($) Business
Business Acquisition [Line Items]
Number of business acquired \| Business	8
Business acquisitions, aggregate purchase price	$ 41.3
Missouri Acquisition
Business Acquisition [Line Items]
Business acquisitions, aggregate purchase price	38.8
Business combination, provisional information, initial accounting incomplete, adjustment, tangible assets	4.4
Business combination, provisional information, initial accounting incomplete, adjustment, goodwill	23.5
Business combination, provisional information, initial accounting incomplete, adjustment, intangibles	$ 10.9

Fair Value Measurements - Schedule of Assets or Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Assets:
Cash equivalents	$ 195,996	$ 214,038
Pension plan assets	4,228	4,603
Foreign currency forward contracts	280	254
Total assets at fair value	200,504	218,895
Level 1
Assets:
Cash equivalents	195,996	214,038
Pension plan assets	0	0
Foreign currency forward contracts	0	0
Total assets at fair value	195,996	214,038
Level 2
Assets:
Cash equivalents	0	0
Pension plan assets	4,228	4,603
Foreign currency forward contracts	280	254
Total assets at fair value	4,508	4,857
Level 3
Assets:
Cash equivalents	0	0
Pension plan assets	0	0
Foreign currency forward contracts	0	0
Total assets at fair value	$ 0	$ 0

Derivative Instruments and Hedging Activities - Narrative (Details) $ in Thousands, $ in Millions	6 Months Ended
	Feb. 29, 2020 USD ($)	Feb. 29, 2020 CAD ($)	Aug. 31, 2019 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount reclassified from accumulated other comprehensive loss	$ (33,101)		$ (33,688)
Forward Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional value (CAD)		$ 7.1
Amount reclassified from accumulated other comprehensive loss	200
Reclassification of nominal value	100
Other Long-Term Assets \| Forward Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value of the contracts	100
Prepaid Expenses and Other Current Assets \| Forward Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Fair value of the contracts	$ 200

Employee Benefit Plans - Narrative (Details) $ in Millions	3 Months Ended		6 Months Ended
Employee Benefit Plans - Narrative (Details) $ in Millions	Feb. 29, 2020 USD ($) Retirement-Plan	Feb. 23, 2019 USD ($)	Feb. 29, 2020 USD ($) Retirement-Plan	Feb. 23, 2019 USD ($)
Postemployment Benefits [Abstract]
Contributions charged to expense under the plan	$ 5.0	$ 4.3	$ 10.5	$ 8.8
Number of frozen non-contributory defined benefit pension plans \| Retirement-Plan	2		2
Amounts charged to expense (benefit) related to the plans	$ (0.3)	$ 0.5	$ 0.4	$ 1.1

Income Per Share - Schedule of Computation of Basic Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Feb. 29, 2020	Nov. 30, 2019	Feb. 23, 2019	Nov. 24, 2018	Feb. 29, 2020	Feb. 23, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income available to shareholders	$ 34,680	$ 48,242	$ 47,606	$ 38,320	$ 82,922	$ 85,926
Allocation of net income for Basic:
Common stock	$ 34,680		$ 47,606		$ 82,922	$ 85,926
Weighted average number of shares for Basic:
Common stock (in shares)	18,936		19,138		18,943	19,140
Common Stock
Allocation of net income for Basic:
Common stock	$ 29,129		$ 39,923		$ 69,654	$ 72,061
Weighted average number of shares for Basic:
Common stock (in shares)	15,293		15,428		15,300	15,430
Income per share for Basic:
Common stock (in dollars per share)	$ 1.90		$ 2.59		$ 4.55	$ 4.67
Class B Common Stock
Allocation of net income for Basic:
Common stock	$ 5,551		$ 7,683		$ 13,268	$ 13,865
Weighted average number of shares for Basic:
Common stock (in shares)	3,643		3,710		3,643	3,710
Income per share for Basic:
Common stock (in dollars per share)	$ 1.52		$ 2.07		$ 3.64	$ 3.74

Income Per Share - Schedule of Computation of Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 29, 2020	Feb. 23, 2019	Feb. 29, 2020	Feb. 23, 2019
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
As reported - Basic	$ 34,680	$ 47,606	$ 82,922	$ 85,926
As reported - Basic (in shares)	18,936	19,138	18,943	19,140
As reported – Diluted	$ 34,680	$ 47,606	$ 82,922	$ 85,926
As reported - Diluted (in shares)	19,105	19,232	19,114	19,258
As reported - Diluted (in dollars per share)	$ 1.82	$ 2.48	$ 4.34	$ 4.46
Common Stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
As reported - Basic	$ 29,129	$ 39,923	$ 69,654	$ 72,061
As reported - Basic (in shares)	15,293	15,428	15,300	15,430
As reported - Basic (in dollars per share)	$ 1.90	$ 2.59	$ 4.55	$ 4.67
Add: effect of dilutive potential common shares	$ 0	$ 0	$ 0	$ 0
Add: effect of dilutive potential common shares (in shares)	169	94	171	118
Class B Common Stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
As reported - Basic	$ 5,551	$ 7,683	$ 13,268	$ 13,865
As reported - Basic (in shares)	3,643	3,710	3,643	3,710
As reported - Basic (in dollars per share)	$ 1.52	$ 2.07	$ 3.64	$ 3.74

Income Per Share - Narrative (Details) - shares	3 Months Ended		6 Months Ended
Income Per Share - Narrative (Details) - shares	Feb. 29, 2020	Feb. 23, 2019	Feb. 29, 2020	Feb. 23, 2019
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from calculation of diluted earnings per share (in shares)	667	195	423	754

Inventories - Schedule of Components of Inventory (Details) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 18,102	$ 23,000
Work in process	2,599	2,864
Finished goods	74,174	75,052
Total inventories	$ 94,875	$ 100,916

Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	6 Months Ended
	Feb. 29, 2020 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Beginning balance	$ 401,178
Goodwill recorded during the period	23,544
Other	(11)
Ending balance	$ 424,711

Goodwill and Other Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 329,617	$ 305,207
Accumulated Amortization	241,262	232,487
Net Carrying Amount	88,355	72,720
Customer contracts
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	233,997	221,306
Accumulated Amortization	170,780	164,718
Net Carrying Amount	63,217	56,588
Software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	59,956	48,838
Accumulated Amortization	36,940	34,813
Net Carrying Amount	23,016	14,025
Other intangible assets
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	35,664	35,063
Accumulated Amortization	33,542	32,956
Net Carrying Amount	$ 2,122	$ 2,107

Asset Retirement Obligations - Narrative (Details)	6 Months Ended
Asset Retirement Obligations - Narrative (Details)	Feb. 29, 2020
Minimum
Asset Retirement Obligations [Line Items]
Remaining lives	1 year
Maximum
Asset Retirement Obligations [Line Items]
Remaining lives	24 years

Asset Retirement Obligations - Reconciliation of Asset Retirement Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Feb. 29, 2020	Feb. 23, 2019
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	$ 12,727
Accretion expense	463	$ 441
Effect of exchange rate changes	28
Balance	$ 13,218

Commitments and Contingencies - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Feb. 23, 2019 USD ($)	Feb. 29, 2020 USD ($) site company	Aug. 26, 2017 USD ($)
Gain Contingencies [Line Items]
Estimated rate of inflation		3.00%
Annual proceeds		$ 0.3
Balance in escrow account		$ 4.2
Number of insurance companies \| company		3
Pre-tax non-cash impairment charge			$ 55.8
Gain (loss) related to litigation settlement	$ 21.1
One-time cash payment received for sale of CRM system	13.0
Hardware received at fair value	$ 0.8
Minimum
Gain Contingencies [Line Items]
Risk-free interest rates utilized		1.10%
Maximum
Gain Contingencies [Line Items]
Risk-free interest rates utilized		1.70%
Williamstown, Vermont
Gain Contingencies [Line Items]
Number of sites related to former operations \| site		2

Commitments and Contingencies - Changes to Environmental Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Feb. 29, 2020	Feb. 23, 2019
Accrual For Environmental Loss Contingencies Roll Forward
Beginning balance	$ 27,718
Revisions in estimates	1,200
Costs incurred for which reserves have been provided	(627)
Insurance proceeds	62
Accretion on environmental contingencies	269	$ 377
Changes in discount rates	781
Ending balance	$ 29,403

Commitments and Contingencies - Anticipated Payments and Insurance Proceeds of Identified Environmental Remediation Liabilities (Details) - USD ($) $ in Thousands	Feb. 29, 2020	Aug. 31, 2019
Estimated costs – current dollars
2020	$ 10,518
2021	2,186
2022	1,353
2023	1,091
2024	1,058
Thereafter	12,032
Total	28,238
Estimated insurance proceeds
2020	(97)
2021	(173)
2022	(159)
2023	(173)
2024	(159)
Thereafter	(693)
Total	(1,454)
Net anticipated costs
2020	10,421
2021	2,013
2022	1,194
2023	918
2024	899
Thereafter	11,339
Total	26,784
Effect of inflation	7,522
Effect of discounting	(4,903)
Balance at end of period	$ 29,403	$ 27,718

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Feb. 29, 2020	Feb. 23, 2019	Feb. 29, 2020	Feb. 23, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate	24.20%	24.90%	23.00%	25.50%
Discrete tax benefit due to stock option exercises	$ 700,000		$ 1,400,000
Discrete tax benefit resulting from release of tax reserves			1,300,000
Decrease in unrecognized tax benefits of due to release of tax reserves	$ 0		$ 1,300,000

Long-Term Debt - Narrative (Details) - Revolving Credit Facility - Credit Agreement $ in Millions	6 Months Ended
	Feb. 29, 2020 USD ($)
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 250.0
Maturity date	Apr. 11, 2021
Outstanding borrowings	$ 0.0
Outstanding letters of credit	70.8
Amount available for borrowing	$ 179.2
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as percent)	0.75%

Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Feb. 29, 2020

Feb. 23, 2019

Feb. 29, 2020

Feb. 23, 2019

AOCI Attributable to Parent, Net of Tax [Roll Forward]

$ 1,676,008

$ 1,539,498

$ 1,641,230

$ 1,464,967

(397)

1,347

587

(847)

Foreign Currency Translation

1,701,438

1,580,790

1,701,438

1,580,790

AOCI Attributable to Parent, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassification

(23,651)

(23,398)

(24,640)

(21,116)

(769)

1,418

220

(864)

Amounts reclassified from accumulated other comprehensive loss

(769)

1,418

220

(864)

(24,420)

(21,980)

(24,420)

(21,980)

Other comprehensive income (loss) before reclassification

^[1]

(9,239)

(4,135)

(9,239)

(4,135)

^[1]

Amounts reclassified from accumulated other comprehensive loss

^[1]

350

^[1]

350

Derivative Financial Instruments

^[1]

(8,889)

(4,135)

(8,889)

(4,135)

AOCI Attributable to Parent, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassification

^[1]

186

180

191

^[1]

(39)

Amounts reclassified from accumulated other comprehensive loss

^[1]

(30)

(32)

(60)

(76)

^[1]

(71)

Accumulated Other Comprehensive Loss

^[1]

208

109

208

109

AOCI Attributable to Parent, Net of Tax [Roll Forward]

Other comprehensive income (loss) before reclassification

(32,704)

(27,353)

(33,688)

(25,159)

(717)

1,379

297

(771)

Amounts reclassified from accumulated other comprehensive loss

320

(32)

290

(76)

(397)

1,347

587

(847)

Accumulated Other Comprehensive Income Loss [Line Items]

$ (33,101)

$ (26,006)

$ (33,101)

$ (26,006)

[1]	Amounts are shown net of tax.

Accumulated Other Comprehensive Loss - Amounts Reclassified from Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Feb. 29, 2020

Nov. 30, 2019

Feb. 23, 2019

Nov. 24, 2018

Feb. 29, 2020

Feb. 23, 2019

Selling and administrative expenses

^[1]

$ 93,080

$ 68,321

$ 183,608

$ 154,280

Reclassification out of Accumulated Other Comprehensive Income

34,680

$ 48,242

47,606

$ 38,320

82,922

85,926

Accumulated Other Comprehensive Income Loss [Line Items]

Pension Benefit Liabilities, Net | Reclassification out of Accumulated Other Comprehensive Income

(30)

(32)

(60)

(76)

Accumulated Other Comprehensive Income Loss [Line Items]

Selling and administrative expenses

^[2]

350

Derivative Financial Instruments | Reclassification out of Accumulated Other Comprehensive Income

350

Accumulated Other Comprehensive Income Loss [Line Items]